ࡱ> ?@AB l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~<#܈ ~~4#܈ ~~3#܈ ~~7#܈ ~~83ffff̙̙3f3fff3f3f33333f33 March 31 2018March 31 2018 (1)March 31 2018 (2)' SIGNATURESx< Balance SheetXIncome StatementtIncome Statement (1).Amounts in Thousands Cash Flows&PNonoperating Income Expense net[Note 2 Inventories&Note 3 Accumulated Other Compre&zNote 3 Accumulated Other Co (1)&& Note 4 Commitments and Continge&ERecurring Fair Value Measuremen&@-Fair Value of Derivative Instru&?The Effect of Derivative Instru&@MThe Effect of Derivative In (1)bNote 7 Investments&oNote 9 Stock Compensation Plans!Z|Note 11 Earnings Per ShareBusiness Overview Financial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)&Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits4 Exhibit Index;NBase Pay"lYCash Incentive CompensationdStock CompensationqStock Compensation (1) l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??#March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 0} $ } +      !Kimball Electronics, Inc. 10-Q 05/03/2018March 31, 2018    Indiana   35-2047713' (State or other jurisdiction of , $(I.R.S. Employer Identification No.)& incorporation or organization)  / '1205 Kimball Boulevard, Jasper, Indiana ~ 0((Address of principal executive offices) (Zip Code)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,|wk_;]z=PF0*8X> @ l  @  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 1      !Kimball Electronics, Inc. 10-Q 05/03/2018March 31, 2018  (812) 634-40000 (Registrant?s telephone number, including  area code Not Applicable.&Former name, former address and former1)fiscal year, if changed since last report$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.wk_S9ocW/=PF0*8X> @ l  N'  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 6} !      !Kimball Electronics, Inc. 10-Q 05/03/2018March 31, 2018  ! Large accelerated filer o Accelerated filer x Non-accelerated filer o# Smaller reporting company o5 -(Do not check if a smaller reporting company)! Emerging growth company x $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/(Twk_G[OC=PF0*8X> @ l  5`5;  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } $ } :} y } $ 5     !Kimball Electronics, Inc. 10-Q 05/03/2018 SIGNATURES      Page No.    $ PART I FINANCIAL INFORMATION    $Item 1. Financial Statements-%Condensed Consolidated Balance Sheets~ 1)- March 31, 2018 (Unaudited) and June 30,~ ,$Condensed Consolidated Statements of~ Income (Unaudited)4,- Three and Nine Months Ended March 31, 2018and 2017,$Condensed Consolidated Statements of~ ( Comprehensive Income (Unaudited)4,- Three and Nine Months Ended March 31, 2018and 2017,$Condensed Consolidated Statements of~ Cash Flows (Unaudited)3+- Nine Months Ended March 31, 2018 and 20171)Notes to Condensed Consolidated Financial~ Statements (Unaudited)4,Item 2. Management?s Discussion and Analysis~ RDwl{oc3?7 Sa3 !"#$%&'()*+,-./01234 8 0of Financial Condition and Results of Operations!8!0Item 3. Quantitative and Qualitative Disclosures~ !~!""About Market Risk#'#Item 4. Controls and Procedures~ #~#$$$$!%PART II OTHER INFORMATION%&&&&'!'Item 1. Legal Proceedings~ ''((Item 1A. Risk Factors~ (()7)/Item 2. Unregistered Sales of Equity Securities~ ))**and Use of Proceeds++Item 6. Exhibits~ ++,,,,- SIGNATURES~ --..../ EXHIBIT INDEX~ //01$2____________________________13)Created by Morningstar Document Research.04(http://documentresearch.morningstar.com/.%V-{KX-[(=PF0*8X> @:443322//--%%  l  ;KV  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURESIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } I;} $ ;     !Kimball Electronics, Inc. 10-Q 05/03/2018 Balance Sheet           (Unaudited)      March 31,  June 30, ~  ~  ASSETS     Current Assets:!Cash and cash equivalents~ R~ ..&Receivables, net of allowances of $410~  ~ \ and $284, respectively Inventories~ b ~ z1)Prepaid expenses and other current assets~ n~ Total current assets~ ~ 2*Property and Equipment, net of accumulated~ ީ~ 6e.&depreciation of $198,017 and $180,028, respectivelyGoodwill~ `~ `3+Other Intangible Assets, net of accumulated~ F~ G91amortization of $27,093 and $26,392, respectively Other Assets~ ~~ j  Total Assets~ %~ !0(LIABILITIES AND SHARE OWNERS ? EQUITYCurrent Liabilities:DJ lxl`xD:OzfZ !"#$%&'()*+,-./0123456789:* "Borrowings under credit facilities~   ~ B !Accounts payable~ !ޤ !!~ !o !"Accrued expenses~ """~ ""!#Total current liabilities~ ###~ #F) #$Other Liabilities:$$$&%Long-term income taxes payable~ %*%% %?%#&Other long-term liabilities~ &R&&~ &&'Total other liabilities~ 'z''~ ''(Share Owners? Equity:((($)Preferred stock-no par value)))%*Shares authorized: 15,000,000 *?** *?*+Shares issued: None!,Common stock-no par value,,,&-Shares authorized: 150,000,000 -?-- -?-!.Shares issued: 29,430,000"/Additional paid-in capital~ /{//~ /Nv/0Retained earnings~ 0Z00~ 0 0,1$Accumulated other comprehensive loss~ 111~ 1r1 2Treasury stock, at cost:22253-Shares: 2,735,000 and 2,592,000, respectively~ 3&33~ 33"4Total Share Owners? Equity~ 444~ 4425*Total Liabilities and Share Owners? Equity~ 5%55~ 5!567$8____________________________19)Created by Morningstar Document Research.0:(http://documentresearch.morningstar.com/: 6u3co8PC7+=PF0*8X> @:::998855554444333311110000////----****''''&&&&%%%%####""""!!!!        l  )an'r  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } -} $ )     !Kimball Electronics, Inc. 10-Q 05/03/2018Income Statement                      Three Months Ended  Nine Months Ended  March 31  March 31  (Unaudited)~  ~  ~  ~  Net Sales~ T~ 7~  v0  ~  * Cost of Sales~ N~  ~  *,  ~  ֓& Gross Profit~ >f~ z$~  N  ~  +#Selling and Administrative Expenses~ ~ n~    ~  ҥOther General Income ? ?  ?  ~  nOperating Income~ .~ ~  J  ~  Other Income (Expense):   Interest income~ :~ .~    ~  Interest expense~ ~ 2~  >  ~  +#Non-operating income (expense), net~ ~ ~  <  ~  #Other income (expense), net~ ~ 2~  7  ~  F%Income Before Taxes on Income~ &~ >~    ~  "Provision for Income Taxes~ #~ j~  zp  ~   Net Income~ N~ ~~  b  ~     +#Earnings Per Share of Common Stock:    Basic= ףp=?333333? = ףp=?   Gz?Diluted?333333? = ףp=?   Gz?Dlui]mg!}qS=49 !"#$%&'(        -!%Average Number of Shares Outstanding:!!!!! ! !  "Basic~ "j""~ " ""~ " n" " ~ " "#Diluted~ #z##~ #b##~ # # # ~ # #$%$&____________________________1')Created by Morningstar Document Research.0((http://documentresearch.morningstar.com/~~=PF0*8X> @zO((''&&###### ## """""" ""                                       l  Ӊ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementAmounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 1} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Income Statement                          Three Months Ended  Three Months Ended  March 31, 2018  March 31, 2017  (Unaudited) Pre-tax  Tax   Net of Tax  Pre-tax  Tax   Net of Tax  Net income    ~ N      ~ ~ *"Other comprehensive income (loss):   0(Foreign currency translation adjustments~ .* $?~  .*  ~  z $?~ zTax Reform impact ?~ ~      ? ? ?1)Postemployment severance actuarial change~ ~ >~  V  ~  f~ z~ Derivative gain (loss)~ ~ ~     ~  &~ N~ ,$Reclassification to (earnings) loss:    Derivatives~ &~ ~  B  ~  .~ ~ ( Amortization of actuarial change~ ~ ~  2  ~  ~ ~~ :)!Other comprehensive income (loss)~ A~ ~  v<  ~  v6~ "~ *"Total comprehensive income~     ~ j$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0ui]=$rfuhn=PF0*8X> @;                          l  S  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1) Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 1} $      !Kimball Electronics, Inc. 10-Q 05/03/2018(Amounts in Thousands)                                      Nine Months Ended  Nine Months Ended  March 31, 2018  March 31, 2017  (Unaudited) Pre-tax  Tax   Net of Tax  Pre-tax  Tax   Net of Tax Net income~  b   ~ *"Other comprehensive income (loss):   0(Foreign currency translation adjustments~ &v $?~  &v  ~   $?~ Tax Reform impact ?~ ~      ? ? ?1)Postemployment severance actuarial change~ :~ ~    ~  F~ ~ Derivative gain (loss)~ ~ R~  .  ~  "~ n~ ,$Reclassification to (earnings) loss:    Derivatives~ ~ "~  &  ~  . ~ ~  ( Amortization of actuarial change~ ~ ~    ~  ~ ~ )!Other comprehensive income (loss)~ 6w~ ~  z  ~  ~ n~ J"Total comprehensive income~  &   ~ V   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B=X{ocW7U F&73.h=PF0*8X> @;                          l  >  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } I;} $ >     !Kimball Electronics, Inc. 10-Q 05/03/2018 Cash Flows            Nine Months Ended  March 31  (Unaudited)~  ~ -%Cash Flows From Operating Activities: Net income~ b~ .&Adjustments to reconcile net income to2*net cash provided by operating activities:%Depreciation and amortization~ 1~ vGain on sales of assets~ ~ Z.&Deferred income tax and other deferred~ +~ charges Stock-based compensation~ n<~ n*Bargain purchase gain ?~  Other, net~ ~ 3+Change in operating assets and liabilities: Receivables~ ~ &, Inventories~  ~ a1)Prepaid expenses and other current assets~ 4~ rAccounts payable~ 2~ ƪ*"Accrued expenses and taxes payable~ f~ ;1)Net cash provided by operating activities~ bF~ Dp l{occn8l#rO !"#$%&'()*+,-./0123456789:;<=- %Cash Flows From Investing Activities:   !Capital expenditures~ !!!~ !w!%"Proceeds from sales of assets~ "j""~ ".".#&Payments for acquisitions, net of cash #?##~ ##$acquired)%!Purchases of capitalized software~ %&%%~ %%& Other, net~ &~&&~ &n&.'&Net cash used for investing activities~ '''~ 'K'-(%Cash Flows From Financing Activities:(((')Proceeds from credit facilities )?))~ )>)%*Payments on credit facilities *?**~ *4*1+)Net change in revolving credit facilities~ +a++~ +e+#,Repurchases of common stock~ ,,,~ ,b,9-1Repurchase of employee shares for tax withholding~ -r--~ --..&Net cash used for financing activities~ .*..~ .>.2/*Effect of Exchange Rate Change on Cash and~ /$//~ //0Cash Equivalents11)Net Decrease in Cash and Cash Equivalents~ 1&11~ 11.2&Cash and Cash Equivalents at Beginning~ 2.22~ 2JW23 of Period24*Cash and Cash Equivalents at End of Period~ 4R44~ 4q4850Supplemental Disclosure of Cash Flow Information555(6 Cash paid during the period for:6667 Income taxes~ 7F77~ 7D78Interest expense~ 8f88~ 8~89:$;____________________________1<)Created by Morningstar Document Research.0=(http://documentresearch.morningstar.com/@3 DKq](i%6/2*=PF0*8X> @:G==<<;;88887777444422221111////....----,,,,++++****))))''''&&&&%%%%####""""!!!!     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash FlowsNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 0} $      !Kimball Electronics, Inc. 10-Q 05/03/2018,$Non-operating Income (Expense), net:                  Three Months Ended  Nine Months Ended  March 31  March 31 (Amounts in Thousands)~  ~  ~  ~ / 'Foreign currency/derivative gain (loss)~    ~   ~ ~6  ~  0(Gain on supplemental employee retirement~ V~ ~  z   ~   plan investments,$Bargain purchase gain on acquisition ? ?  ?  ~  v Other~ ~ ~    ~  *+#Non-operating income (expense), net~ ~ ~  <  ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4ymaUI6x$=PF0*8X> @                   l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense net!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Note 2. Inventories         (Amounts in Thousands) March 31, 2018  June 30,     ~  Finished products~ ֵ  ~ '  Work-in-process~   ~   Raw materials~  ~  Total inventory~ b ~ z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.e~rfZTC=PF0*8X> @r        l  #^s  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 0} $ #     !Kimball Electronics, Inc. 10-Q 05/03/2018=5Note 3. Accumulated Other Comprehensive Income (Loss)                . &Accumulated Other Comprehensive Income       (Loss) (Amounts in Thousands)0 (Foreign Currency Translation Adjustments  Derivative Gain (Loss)  Post Employment Benefits . &Accumulated Other Comprehensive Income          Net Actuarial Gain  (Loss) Balance at June 30, 2017~ ~ r~     ~  rTax Reform impact (1) ?~ ~     ~  0(Other comprehensive income (loss) before~ &v~ .~    ~  Bnreclassifications+#Reclassification to (earnings) loss ?~ &~    ~   .&Net current-period other comprehensive~ &v~ ~    ~  z income (loss)!Balance at March 31, 2018~  ~ ~~     ~      Balance at June 30, 2016~ .i~ ~  b   ~  A0(Other comprehensive income (loss) before~ ~ ~    ~  reclassifications+#Reclassification to (earnings) loss ?~  ~    ~  .&Net current-period other comprehensive~ ~  ~  n  ~  J income (loss)!Balance at March 31, 2017~ 6~ ~     ~  0Dlh\PD8xR6_w0rY !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/ (=PF0*8X> @7""!!                              l  -  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 0} $ } :      !Kimball Electronics, Inc. 10-Q 05/03/2018=5Note 3. Accumulated Other Comprehensive Income (Loss)                   0 (Reclassifications from Accumulated Other  Three Months Ended  Nine Months Ended 8 0Affected Line Item in the Condensed Consolidated# Comprehensive Income (Loss)  March 31  March 31  Statements of Income (Amounts in Thousands) ~  ~  ~  ~  " Derivative gain (loss) (1) ~   ~   ~   ~     Cost of Sales ? ?   ?  ~ +#Non-operating income (expense), net~ ~ " ~    ~ &"Provision for Income Taxes~ ~  ~    ~  Net of Tax Postemployment Benefits:   *"Amortization of actuarial gain (2)~ ~  ~  F  ~ N Cost of Sales~ ~  ~    ~ +#Selling and Administrative Expenses~ ^~  ~  f  ~ "Provision for Income Taxes~ ~  ~  n  ~ ~ Net of Tax.&Total reclassifications for the period~ ~  ~  J  ~ v Net of Tax$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<h\PD8T\yez=PF0*8X> @z/                   l  T  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } $4} $      !Kimball Electronics, Inc. 10-Q 05/03/20186.Note 4. Commitments and Contingent Liabilities          Nine Months Ended  March 31 (Amounts in Thousands)~  ~ 3 +Product warranty liability at the beginning~ F   ~ v   of the period0(Additions to warranty accrual (including~ 2~ :changes in estimates)-%Settlements made (in cash or in kind)~ ~ ~0(Product warranty liability at the end of~ Z ~ *  the period$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4QocWK?LH'B, =PF0*8X> @z       l  &m)s+  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } a/}  $ &                                 !Kimball Electronics, Inc. 10-Q 05/03/2018*"Recurring Fair Value Measurements:               March 31, 2018 (Amounts in Thousands) Level 1  Level 2   Total Assets       Cash equivalents~    $?   ~  /'Derivatives: foreign exchange contracts ?~  ~   -%Trading securities: mutual funds held~  ? ~   in nonqualified SERP"Total assets at fair value~ 2~  ~    Liabilities   /'Derivatives: foreign exchange contracts $?~ z( ~  z( 'Total liabilities at fair value $?~ z( ~  z(     June 30, 2017(Amounts in Thousands)Level 1Level 2   TotalAssets  Cash equivalents~  $? ~   /'Derivatives: foreign exchange contracts ?~ J ~  J -%Trading securities: mutual funds held~ v ? ~  v in nonqualified SERP"Total assets at fair value~ ڇ~ J ~  "  Liabilities   /'Derivatives: foreign exchange contracts $?~ - ~  - DGl{ocWK $&aG_a ! " # $ % ' Total liabilities at fair value $?  ~ -   ~ - !"$#____________________________1$)Created by Morningstar Document Research.0%(http://documentresearch.morningstar.com/dcWK#=PF0*8X> @z/%% $$ ##                    l  >  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } } 1}  $ } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018YQFair Value of Derivative Instruments on the Condensed Consolidated Balance Sheets                      Asset Derivatives  Liability Derivatives    Fair Value As of    Fair Value As of (Amounts in Thousands) Balance Sheet Location   March 31,  June 30,  Balance Sheet Location   March 31,  June 30,   ~  ~    ~  ~ 6.Derivatives Designated as Hedging Instruments:    "Foreign exchange contracts1)Prepaid expenses and other current assets~ ~ J   Accrued expenses ~  "~ f     -%Derivatives Not Designated as Hedging      Instruments:"Foreign exchange contracts1)Prepaid expenses and other current assets~ 2 ?   Accrued expenses ~  Z~ ^Total derivatives~ ~ J    ~  z(~ -$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/84 L@4(,Vb=pV}qe==PF0*8X> @                l  ;L  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } } $      !Kimball Electronics, Inc. 10-Q 05/03/2018QIThe Effect of Derivative Instruments on Other Comprehensive Income (Loss)                        Three Months Ended  Nine Months Ended     March 31  March 31 (Amounts in Thousands)   ~  ~  ~  ~ 3 +Amount of Pre-Tax Gain or (Loss) Recognized        2*in Other Comprehensive Income (Loss) (OCI)+#on Derivatives (Effective Portion):"Foreign exchange contracts~ ~ &  ~  ~ "$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0pTH<0$@e,=PF0*8X> @            l   `  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative InstruNote 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 7} $ } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018[SThe Effect of Derivative Instruments on Condensed Consolidated Statements of Income                        Three Months Ended  Nine Months Ended (Amounts in Thousands)    March 31  March 316 .Derivatives in Cash Flow Hedging Relationships " Location of Gain or (Loss) ~  ~  ~  ~ 5 -Amount of Pre-Tax Gain or (Loss) Reclassified        3+from Accumulated OCI into Income (Effective Portion):"Foreign exchange contracts Cost of Sales~ ~   ~  ~ "Foreign exchange contracts&Non-operating income (expense) ? ?    ?~  Total~ ~   ~  ~   -%Derivatives Not Designated as Hedging    Instruments3+Amount of Pre-Tax Gain or (Loss) Recognized  !in Income on Derivatives:"Foreign exchange contracts&Non-operating income (expense)~ ~   ~  ~    7/Total Derivative Pre-Tax Gain (Loss) Recognized~ ~ b  ~  ~ Z  in Income$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/DlJ>2&6EqsO|g[3=PF0*8X> @2&                    l  qn  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } $4} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Note 7. Investments         (Amounts in Thousands)  March 31,  June 30, ~  ~ (  SERP investments - current asset~   ~   0 (SERP investments - other long-term asset~   ~ r " Total SERP investments~ ~ v+#SERP obligation - current liability~ ~  3+SERP obligation - other long-term liability~ ~ r! Total SERP obligation~ ~ v$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4~rfZo)n=PF0*8X> @         l  {  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 InvestmentsNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } U5} $ } } $ }  } $ }  } $                        !Kimball Electronics, Inc. 10-Q 05/03/2018( Note 9. Stock Compensation Plans          " Stock Compensation Awarded  Quarter Awarded   Shares/Units ! Grant Date Fair Value (2)(  Long-Term Performance Shares (1)   1st Quarter ~      L2@        3 +Unrestricted shares (Director compensation)   2nd Quarter ~ :x    fffff&4@ ~ 4,Deferred share units (Director compensation) 2nd Quarter~ fffff&4@ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0}qeYM34~peWK#=PF0*8X> @*     l  #*?  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } :} $ #     !Kimball Electronics, Inc. 10-Q 05/03/2018#Note 11. Earnings Per Share                  Three Months Ended  Nine Months Ended  March 31  March 31/ '(Amounts in thousands, except per share~  ~  ~  ~  data)-%Basic and Diluted Earnings Per Share:    Net Income~ N~ ~~  b  ~  6. Less: Net Income allocated to participating~ ~ ~    ~  & securities6. Net Income allocated to common Share Owners~ :~ ~~  J  ~     80Basic weighted average common shares outstanding~ j~  ~  n  ~  .&Dilutive effect of average outstanding~ ~ B~  v  ~  Zperformance shares.&Dilutive effect of average outstanding~ ~ ~    ~  deferred stock units4,Dilutive weighted average shares outstanding~ z~ b~    ~     +#Earnings Per Share of Common Stock:    Basic= ףp=?333333? = ףp=?   Gz?Diluted?333333? = ףp=?   Gz?D lvj^R?p_5oY3k ] !"$ ____________________________1!)Created by Morningstar Document Research.0"(http://documentresearch.morningstar.com/ (=PF0*8X> @z/""!!                           l  O  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } $} $ } $} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Business Overview          Nine Months Ended   March 31 Customer Service Years ~  ~  More than 10 Years    % of Net Sales~  %~  %# of Customers~ r~ n 5 to 10 Years% of Net Sales~ r %~  %# of Customers~ J~ bLess than 5 Years% of Net Sales~ . %~  %# of Customers~ ~~  Total% of Net Sales~  %~  % # of Customers~ 6~ N$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ Dth\Q5iZ=PF0*8X> @:     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 2} $ } U} $}  $ } U} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Financial Overview                    At or for the    Three Months Ended  March 31  2 *(Amounts in Millions, Except for Per Share~   as a % of Net Sales ~   as a % of Net Sales  % Change Data) Net Salesfffffq@m@   ~ Z % Gross Profitfffff6@333333 @ %333332@  ~  "  %~ Z %+#Selling and Administrative Expensesffffff'@@ %ffffff"@   333333@  %~ r %Operating Incomeffffff&@333333@ %#@   ffffff@  %~ J %"Provision for Income Taxesffffff@?   ~ ~ % Net Income%@333333 @   ~  %"Diluted Earnings per Share?333333?    Open Orders~ g@   ~ b %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/< sg[R( W~/y=PF0*8X> @               l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 2} $ } U} $}  $ } U} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Financial Overview                            ! For the Nine Months Ended    March 31  2 *(Amounts in Millions, Except for Per Share~   as a % of Net Sales ~   as a % of Net Sales  % Change Data) Net Salesfffffڈ@̌@   ~ > % Gross Profit33333O@~ " %L@    @  %~ * %+#Selling and Administrative Expenses333333@@ffffff@ %~ n  ~    %~ R %Other General Income $?~    Operating Income~ ~333333@ %LA@  ~    %~  %"Provision for Income Taxes7@333333!@   ~  % Net Income~ .:@   ~  %"Diluted Earnings per Share= ףp=?Gz?   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<N sg[$8AsK=PF0*8X> @              l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } I"} $ } $} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Financial Overview                      $ Net Sales by Vertical Market Three Months Ended    Nine Months Ended    March 31    March 31   (Amounts in Millions)~  ~   % Change ~  ~   % Change  Automotive fffffa@   33333W@  ~  %  )v@   ̬q@  ~ f %Medical33333sS@fffffM@~  z  %  \l@fffffg@~ V % IndustrialfffffJ@fffffJ@~    %  33333d@fffff6c@~  % Public Safety,@4@~    %  fffffF@H@~  % Otherffffff@@~  F  %   @.@~ N %Total Net Salesfffffq@m@~  Z  %  fffffڈ@̌@~ > %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4 sg[SD{oG=PF0*8X> @*%                  l  %  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } a}  } $ }  } $ }  } $ }       !Kimball Electronics, Inc. 10-Q 05/03/2018Financial Overview          Three Months Ended  Nine Months Ended  March 31  March 31 ~  ~  ~  ~  ZF 16%  13%  15%  12%Nexteer Automotive 15% 12% 13% 12%Philips 12% 13% 13% 14%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0 sg[hA5)=PF0*8X> @:     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 0} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Financial Overview                  Three Months Ended  Nine Months Ended  March 31  March 31 (Amounts in Thousands)~  ~  ~  ~  Interest income~ :  ~ .  ~   ~  Interest expense~ ~ 2~  >  ~  /'Foreign currency/derivative gain (loss)~  ~ ~  ~6  ~  0(Gain on supplemental employee retirement~ V~ ~  z   ~   !plan (?SERP?) investments,$Bargain purchase gain on acquisition ? ?  ?  ~  v Other~ ~ ~    ~  *#Other income (expense), net~ ~ 2~  7  ~  F$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8# sg[H;|AvN=PF0*8X> @:'                       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } $} $ }  } $}  $ } } $      !Kimball Electronics, Inc. 10-Q 05/03/2018Financial Overview               ! For the Nine Months Ended  March 31, 2018  March 31, 2017 (Amounts in Thousands) Income Before Taxes  Effective Tax Rate  Income Before Taxes  Effective Tax Rate  United States~ 7  ~ n % ~ t   <@ %Foreign~ R5@ %~   ~  b  % Total~ 33333Q@ %~    fffff8@  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.sg[6v&sg?=PF0*8X> @             l  0  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)Cash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } } $ } } $ } m} $ }       !Kimball Electronics, Inc. 10-Q 05/03/2018'Liquidity and Capital Resources          Three Months Ended   March 31, 2018   June 30, 2017  March 31, 2017 DSO ~  ~  ~  PDSOH ~   ~  ~  APD~ ~ ~  CCD~ ~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.|~rfZNG.=PF0*8X> @"  l  ;  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesItem 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } 1} $                       !Kimball Electronics, Inc. 10-Q 05/03/2018 Cash Flows            Nine Months Ended   March 31 (Amounts in thousands) ~  ~ 1 )Net cash provided by operating activities ~ bF  ~  .&Net cash used for investing activities~ ~ K.&Net cash used for financing activities~ *~ >$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.{oc@A=PF0*8X> @j        l  B(S2,3  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1) Exhibit Index Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } } $ } 7 B     !Kimball Electronics, Inc. 10-Q 05/03/2018Item 6. Exhibits    @ 6 .Amended and Restated Articles of Incorporation  1 )of the Company (Incorporated by reference  2 *to Exhibit 3.1 to the Company?s Form 8-K/A  3 +filed October 23, 2014, File No. 001-36454) @3+Amended and Restated By-laws of the Company-%(Incorporated by reference to Exhibit4,3.2 to the Company?s Form 8-K filed November%13, 2017, File No. 001-36454)10.1 *+/'Summary of Director and Named ExecutiveOfficer Compensation31.1 +.&Certification filed by Chief Executive5-Officer pursuant to Rule 13a-14(a)/15d-14(a),1)as adopted pursuant to Section 302 of the"Sarbanes-Oxley Act of 200231.2 +.&Certification filed by Chief Financial5-Officer pursuant to Rule 13a-14(a)/15d-14(a),1)as adopted pursuant to Section 302 of the"Sarbanes-Oxley Act of 200232.1 +^6.Certification furnished by the Chief Executive3+Officer pursuant to 18 U.S.C. Section 1350,1)as adopted pursuant to Section 906 of the"Sarbanes-Oxley Act of 2002D lui]9FY v>Pq$> !"#$%&'()*+,-./0123456789:;<=>? 32.2 +^ 6 .Certification furnished by the Chief Financial!!3!+Officer pursuant to 18 U.S.C. Section 1350,""1")as adopted pursuant to Section 906 of the##"#Sarbanes-Oxley Act of 2002$ 101.INS +$$XBRL Instance Document% 101.SCH +%/%'XBRL Taxonomy Extension Schema Document& 101.CAL +&4&,XBRL Taxonomy Extension Calculation Linkbase'''Document( 101.DEF +(3(+XBRL Taxonomy Extension Definition Linkbase)))Document* 101.LAB +*.*&XBRL Taxonomy Extension Label Linkbase+++Document, 101.PRE +,,,$XBRL Taxonomy Extension Presentation---Linkbase Document.9/1* Constitutes management contract or compensatory0 arrangement1+ Filed herewith02(^ In accordance with Item 601(b)(32)(ii)-3%of Regulation S-K, the certifications/4'furnished in Exhibit 32.1 and 32.2 will5not be.6&deemed ?filed? for purposes of Section37+18 of the Exchange Act. Such certifications08(will not be deemed to be incorporated by69.reference into any filing under the Securities5:-Act or the Exchange Act, except to the extent(; that the registrant specifically%<incorporates it by reference.=>$?____________________________D# lX 6Y-](xGe+@A1@)Created by Morningstar Document Research.0A(http://documentresearch.morningstar.com/=PF0*8X> @AA@@??<<;;::99887766554433221100// l  CBOLdM  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Base PayCash Incentive CompensationStock CompensationStock Compensation (1)U } } $ } 7 C     !Kimball Electronics, Inc. 10-Q 05/03/2018 Exhibit Index     Exhibit No.   Description @ 6 .Amended and Restated Articles of Incorporation  1 )of the Company (Incorporated by reference  2 *to Exhibit 3.1 to the Company?s Form 8-K/A3+filed October 23, 2014, File No. 001-36454) @3+Amended and Restated By-laws of the Company-%(Incorporated by reference to Exhibit4,3.2 to the Company?s Form 8-K filed November%13, 2017, File No. 001-36454)10.1 *+/'Summary of Director and Named ExecutiveOfficer Compensation31.1 +.&Certification filed by Chief Executive5-Officer pursuant to Rule 13a-14(a)/15d-14(a),1)as adopted pursuant to Section 302 of the"Sarbanes-Oxley Act of 200231.2 +.&Certification filed by Chief Financial5-Officer pursuant to Rule 13a-14(a)/15d-14(a),1)as adopted pursuant to Section 302 of the"Sarbanes-Oxley Act of 200232.1 +^6.Certification furnished by the Chief Executive3+Officer pursuant to 18 U.S.C. Section 1350,1)as adopted pursuant to Section 906 of theD lxl`<]k"?f:V !"#$%&'()*+,-./0123456789:;<=>?  " Sarbanes-Oxley Act of 2002!32.2 +^!6!.Certification furnished by the Chief Financial""3"+Officer pursuant to 18 U.S.C. Section 1350,##1#)as adopted pursuant to Section 906 of the$$"$Sarbanes-Oxley Act of 2002% 101.INS +%%XBRL Instance Document& 101.SCH +&/&'XBRL Taxonomy Extension Schema Document' 101.CAL +'4',XBRL Taxonomy Extension Calculation Linkbase(((Document) 101.DEF +)3)+XBRL Taxonomy Extension Definition Linkbase***Document+ 101.LAB ++.+&XBRL Taxonomy Extension Label Linkbase,,,Document- 101.PRE +-,-$XBRL Taxonomy Extension Presentation...Linkbase Document/901* Constitutes management contract or compensatory1 arrangement2+ Filed herewith03(^ In accordance with Item 601(b)(32)(ii)-4%of Regulation S-K, the certifications/5'furnished in Exhibit 32.1 and 32.2 will6not be.7&deemed ?filed? for purposes of Section38+18 of the Exchange Act. Such certifications09(will not be deemed to be incorporated by6:.reference into any filing under the Securities5;-Act or the Exchange Act, except to the extent(< that the registrant specifically%=incorporates it by reference.>?D9 liLspn: ['_@AB$@____________________________1A)Created by Morningstar Document Research.0B(http://documentresearch.morningstar.com/ (=PF0*8X> @BBAA@@==<<;;::99887766554433221100 l  X  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit IndexCash Incentive CompensationStock CompensationStock Compensation (1)U } 7} $      !Kimball Electronics, Inc. 10-Q 05/03/2018Base Pay    1 )Donald D. Charron, Chairman of the Board,~ fC*  Chief Executive Officer. &John H. Kahle, Vice President, General~ G 4 ,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~ > Operations0(Michael K. Sergesketter, Vice President,~ Chief Financial Officer-%Christopher J. Thyen, Vice President,~ Business Development$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4}qe5w?d=PF0*8X> @B   l  c  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayStock CompensationStock Compensation (1)U } 7} $      !Kimball Electronics, Inc. 10-Q 05/03/2018#Cash Incentive Compensation    1 )Donald D. Charron, Chairman of the Board,~   Chief Executive Officer. &John H. Kahle, Vice President, General~ zD 4 ,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~ O  Operations0(Michael K. Sergesketter, Vice President,~  Chief Financial Officer-%Christopher J. Thyen, Vice President,~ ^f Business Development$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4vj^R"d,tQ=PF0*8X> @B   l  q  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock Compensation (1)U } 7} $ }  } $      !Kimball Electronics, Inc. 10-Q 05/03/2018Stock Compensation        LTPS Grant   (Shares Issued) (1)1 )Donald D. Charron, Chairman of the Board, ~ z  Chief Executive Officer.&John H. Kahle, Vice President, General~  4,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~  Operations0(Michael K. Sergesketter, Vice President,~ *Chief Financial Officer-%Christopher J. Thyen, Vice President,~ FBusiness Development6.(1) Shares have not been reduced by the number5-of shares withheld to satisfy tax withholding obligations.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BvXsg[+kHXBnN*_=PF0*8X> @B   l  @}  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??# March 31 2018March 31 2018 (1)March 31 2018 (2) SIGNATURES Balance SheetIncome StatementIncome Statement (1)Amounts in Thousands Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 3 Accumulated Other Co (1)!Note 4 Commitments and Continge!Recurring Fair Value Measuremen!Fair Value of Derivative Instru!The Effect of Derivative Instru!The Effect of Derivative In (1)Note 7 Investments!Note 9 Stock Compensation PlansNote 11 Earnings Per ShareBusiness OverviewFinancial OverviewFinancial Overview (1)Financial Overview (2)Financial Overview (3)Financial Overview (4)Financial Overview (5)!Liquidity and Capital ResourcesCash Flows (1)Item 6 Exhibits Exhibit Index Base PayCash Incentive CompensationStock CompensationU } 7} $ }  } $      !Kimball Electronics, Inc. 10-Q 05/03/2018Stock Compensation        LTPS Award   (number of shares)1 )Donald D. Charron, Chairman of the Board, ~   Chief Executive Officer.&John H. Kahle, Vice President, General~ ʢ4,Counsel, Chief Compliance Officer, Secretary6.Steven T. Korn, Vice President, North American~  Operations0(Michael K. Sergesketter, Vice President,~ Chief Financial Officer-%Christopher J. Thyen, Vice President,~ Business Development$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8Vsg[+lIYCoOC=PF0*8X> @*   Root Entry FBook  }  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>