ࡱ> %&'( 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  OR OR (1) OR (2) I&INDEX : Balance SheetVIncome StatementrIncome Statemen (1)&MCONDENSED CONSOLIDATED STATEMENX Cash Flows&Nonoperating Income Expense netRNote 2 Inventories&)Note 3 Accumulated Other Compre$Note 3 Accumulated Other (1)&<Note 4 Commitments and Continge&  13Recurring Fair Value Measure&$ 15Fair Value of Derivative Ins&6The Effect of Derivative Instru$CThe Effect of Derivative (1) Y 16Note 7 Investments&eNote 9 Stock Compensation Plans$q 18Note 11 Earnings Per Share| 19Business Overview& 21Financial Overview 21Financial Ov (1)j 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)&Liquidity and Capital Resources 25Cash Flows& Item 2 Unregistered Sales of Eq 31Item 6 Exhibits11 Exhibit Index l  2  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 0} $ } +      !Kimball Electronics, Inc. 10-Q 02/08/2018 OR    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/,s|wkGi=PF0*8X> @ l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 1      !Kimball Electronics, Inc. 10-Q 02/08/2018 OR  (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_E{oc;=PF0*8X> @ l  %  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 6} !      !Kimball Electronics, Inc. 10-Q 02/08/2018 OR  ! 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/(TwkSg[O'=PF0*8X> @ l  693:  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2) Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } $ } :} y } $ 6     !Kimball Electronics, Inc. 10-Q 02/08/2018 INDEX      Page No.    $ PART I FINANCIAL INFORMATION    $Item 1. Financial Statements-%Condensed Consolidated Balance Sheets~ 0(- December 31, 2017 (Unaudited) and June30, 2017,$Condensed Consolidated Statements of~ Income (Unaudited)1)- Three and Six Months Ended December 31, 2017 and 2016,$Condensed Consolidated Statements of~ ( Comprehensive Income (Unaudited)1)- Three and Six Months Ended December 31, 2017 and 2016,$Condensed Consolidated Statements of~ Cash Flows (Unaudited)0(- Six Months Ended December 31, 2017 and~ 1)Notes to Condensed Consolidated Financial~ Statements (Unaudited)D4lth8 D7 Q]/ !"#$%&'()*+,-./012345 4 ,Item 2. Management?s Discussion and Analysis~ N !8!0of Financial Condition and Results of Operations"8"0Item 3. Quantitative and Qualitative Disclosures~ "z"##About Market Risk$'$Item 4. Controls and Procedures~ $z$%%%%!&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~ ..////0 EXHIBIT INDEX~ 0012$3____________________________14)Created by Morningstar Document Research.05(http://documentresearch.morningstar.com/0Z~N[]-=PF0*8X> @:55443300..&&  l  ;IqT  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX Income StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } I;} $ ;     !Kimball Electronics, Inc. 10-Q 02/08/2018 Balance Sheet           (Unaudited)      December 31,  June 30, ~  ~  ASSETS     Current Assets:!Cash and cash equivalents~ ,~ ..&Receivables, net of allowances of $315~ ~ ~ \ and $284, respectively Inventories~ Z ~ z1)Prepaid expenses and other current assets~ "~ Total current assets~ Z~ 2*Property and Equipment, net of accumulated~ ʚ~ 6e.&depreciation of $192,887 and $180,028, respectivelyGoodwill~ `~ `3+Other Intangible Assets, net of accumulated~ rI~ G91amortization of $26,889 and $26,392, respectively Other Assets~ z ~ j  Total Assets~ :#~ !0(LIABILITIES AND SHARE OWNERS ? EQUITYCurrent Liabilities:DM lxl`uA7LwcW !"#$%&'()*+,-./0123456789:* "Borrowings under credit facilities~   ~ B !Accounts payable~ ! !!~ !o !"Accrued expenses~ "*""~ ""!#Total current liabilities~ #] ##~ #F) #$Other Liabilities:$$$&%Long-term income taxes payable~ %*%% %?%#&Other long-term liabilities~ &&&~ &&'Total other liabilities~ '~''~ ''(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~ /f//~ /Nv/0Retained earnings~ 0 00~ 0 0,1$Accumulated other comprehensive loss~ 1Z11~ 1r1 2Treasury stock, at cost:22253-Shares: 2,735,000 and 2,592,000, respectively~ 3&33~ 33"4Total Share Owners? Equity~ 4R44~ 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  )lo  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 2} $ )     !Kimball Electronics, Inc. 10-Q 02/08/2018Income Statement                      Three Months Ended  Six Months Ended   December 31   December 31  (Unaudited)~  ~  ~  ~  Net Sales~ ~  ~  5  ~  2 Cost of Sales~ z~  ~  ޽  ~  ƀ Gross Profit~ G~ &A~  x  ~  n_+#Selling and Administrative Expenses~ F~ ~  B  ~  fOther General Income ? ?  ?  ~  nOperating Income~ F~ F~  5  ~  Other Income (Expense):   Interest income~ J~ :~    ~  Interest expense~ >~ ~  n  ~  v+#Non-operating income (expense), net~ ~ ~    ~  #Other income (expense), net~ &~ *~    ~  %Income Before Taxes on Income~ j~ n~  N  ~  "Provision for Income Taxes~ '~ ^5~  L  ~  zkNet Income (Loss)~ }~ z~    ~  :   2*Earnings (Loss) Per Share of Common Stock:    Basicףp= ӿ(\?  $?   ?Dilutedףp= ӿQ?  $?   ?Dlui]mbxlN8(& !"#$%&'(        -!%Average Number of Shares Outstanding:!!!!! ! !  "Basic~ "6""~ "Z""~ " " " ~ "  "#Diluted~ #6##~ ###~ # # # ~ # #$%$&____________________________1')Created by Morningstar Document Research.0((http://documentresearch.morningstar.com/~~=PF0*8X> @zO((''&&###### ## """""" ""                                       l  $  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome Statement!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 1} $      !Kimball Electronics, Inc. 10-Q 02/08/2018Income Statement                          Three Months Ended  Three Months Ended  December 31, 2017  December 31, 2016  (Unaudited) Pre-tax  Tax   Net of Tax  Pre-tax  Tax   Net of Tax Net income (loss)    ~ }      ~ z *"Other comprehensive income (loss):   0(Foreign currency translation adjustments~  $?~    ~  ¬ $?~ ¬1)Postemployment severance actuarial change~ ~ V~  .  ~  N~ F~ Derivative gain (loss)~ ~ Z~  f  ~  ~ ~ ,$Reclassification to (earnings) loss:    Derivatives~ ~ ~    ~   ~ ~ F( Amortization of actuarial change~ ~ ~  .  ~  ~ v~ >)!Other comprehensive income (loss)~  ~  ~    ~  2~ F~ v)!Total comprehensive income (loss)~     ~ -$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<ui]=eYLR=PF0*8X> @5                        l  +  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1) Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 1} $      !Kimball Electronics, Inc. 10-Q 02/08/2018A9CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                      Six Months Ended  Six Months Ended  December 31, 2017  December 31, 2016  (Unaudited) Pre-tax  Tax   Net of Tax  Pre-tax  Tax   Net of Tax Net income~     ~ :*"Other comprehensive income (loss):   0(Foreign currency translation adjustments~ K $?~  K  ~  j $?~ j1)Postemployment severance actuarial change~ "~ ~~    ~  ~ .~ Derivative gain (loss)~ ~ V ~  n  ~  ~ "~ ,$Reclassification to (earnings) loss:    Derivatives~ ~ ~    ~  ~ ~ ( Amortization of actuarial change~ n~ ~  f  ~  J~ ~ N)!Other comprehensive income (loss)~ ~5~ ~  J>  ~  j~ N~ "Total comprehensive income~  ^@   ~    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@_DdXL@44i2b=PF0*8X> @5                        l  >bܺ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } I;} $ >     !Kimball Electronics, Inc. 10-Q 02/08/2018 Cash Flows            Six Months Ended   December 31  (Unaudited)~  ~ -%Cash Flows From Operating Activities: Net income~ ~ :.&Adjustments to reconcile net income to2*net cash provided by operating activities:%Depreciation and amortization~ N~ Gain on sales of assets~ ~ f.&Deferred income tax and other deferred~ /~ charges Stock-based compensation~ .&~ VBargain purchase gain ?~  Other, net~ .~ ^3+Change in operating assets and liabilities: Receivables~ ~ x Inventories~ ~ j1)Prepaid expenses and other current assets~ ~ .Accounts payable~ ]~ *"Accrued expenses and taxes payable~ S~ * 1)Net cash provided by operating activities~ &~ Dr l{oca l6j!pM !"#$%&'()*+,-./0123456789:;<=- %Cash Flows From Investing Activities:   !Capital expenditures~ !2!!~ !>!%"Proceeds from sales of assets~ """~ "".#&Payments for acquisitions, net of cash #?##~ ##$acquired)%!Purchases of capitalized software~ % %%~ %n%& Other, net~ &*&&~ &&.'&Net cash used for investing activities~ '''~ '"'-(%Cash Flows From Financing Activities:(((')Proceeds from credit facilities )?))~ )>)%*Payments on credit facilities *?**~ **1+)Net change in revolving credit facilities~ +++ +?+#,Repurchases of common stock~ ,,,~ ,6 ,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~ 1t11~ 1D1.2&Cash and Cash Equivalents at Beginning~ 2.22~ 2JW23 of Period24*Cash and Cash Equivalents at End of Period~ 4,44~ 4қ4850Supplemental Disclosure of Cash Flow Information555(6 Cash paid during the period for:6667 Income taxes~ 7n77~ 778Interest expense~ 888~ 8N89:$;____________________________1<)Created by Morningstar Document Research.0=(http://documentresearch.morningstar.com/@2 DKq](i&703+=PF0*8X> @:G==<<;;88887777444422221111////....----,,,,++++****))))''''&&&&%%%%####""""!!!!     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash FlowsNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 8} $      !Kimball Electronics, Inc. 10-Q 02/08/2018,$Non-operating Income (Expense), net:                  Three Months Ended  Six Months Ended   December 31   December 31 (Amounts in Thousands)~  ~  ~  ~ / 'Foreign currency/derivative gain (loss)~ 6  ~ ~  ~   ~   7/Gain (loss) on supplemental employee retirement~ j~ ~  &   ~  plan investments,$Bargain purchase gain on acquisition ? ?  ?  ~  v Other~ ~ j~    ~  +#Non-operating income (expense), net~ ~ ~    ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4ymaUI7s{=PF0*8X> @                   l  F  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense net!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018Note 2. Inventories         (Amounts in Thousands) December 31, 2017  June 30,     ~  Finished products~   ~ '  Work-in-process~   ~   Raw materials~ 2b~  Total inventory~ Z ~ z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.h~rfZQ@=PF0*8X> @r        l  "  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 InventoriesNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 0} $ "     !Kimball Electronics, Inc. 10-Q 02/08/2018=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~     ~  r0(Other comprehensive income (loss) before~ K~ n~    ~  8reclassifications+#Reclassification to (earnings) loss ?~ ~  f  ~  J.&Net current-period other comprehensive~ K~ R~    ~  J> income (loss)$Balance at December 31, 2017~ ~ ~     ~  Z    Balance at June 30, 2016~ .i~ ~  b   ~  A0(Other comprehensive income (loss) before~ j~ ~    ~  nreclassifications+#Reclassification to (earnings) loss ?~ ~  N  ~  J.&Net current-period other comprehensive~ j~  ~  Z  ~   income (loss)$Balance at December 31, 2016~ "~ ~     ~  >$____________________________Drlh\PD8xR M4 pNB !1 )Created by Morningstar Document Research.0!(http://documentresearch.morningstar.com/=PF0*8X> @3!!                            l  C  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other Compre!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 0} $ } :      !Kimball Electronics, Inc. 10-Q 02/08/2018=5Note 3. Accumulated Other Comprehensive Income (Loss)                   0 (Reclassifications from Accumulated Other  Three Months Ended  Six Months Ended 8 0Affected Line Item in the Condensed Consolidated# Comprehensive Income (Loss)   December 31   December 31  Statements of Income (Amounts in Thousands) ~  ~  ~  ~  " Derivative gain (loss) (1) ~ J  ~ v  ~ "  ~     Cost of Sales ?~    ?  ~ +#Non-operating income (expense), net~ &~ b ~    ~ ,$Benefit (Provision) for Income Taxes~ n~  ~    ~  Net of Tax Postemployment Benefits:   *"Amortization of actuarial gain (2)~ ~  ~  r  ~  Cost of Sales~ ~  ~  &  ~ &+#Selling and Administrative Expenses~ ~  ~     ~ "Provision for Income Taxes~ ~  ~    ~  Net of Tax.&Total reclassifications for the period~ B~  ~    ~  Net of Tax$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<h\PD8TWtUj=PF0*8X> @z/                   l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } $4} $      !Kimball Electronics, Inc. 10-Q 02/08/20186.Note 4. Commitments and Contingent Liabilities          Six Months Ended   December 31 (Amounts in Thousands)~  ~ 3 +Product warranty liability at the beginning~ F   ~ v   of the period0(Additions to warranty accrual (including~ ~ changes in estimates)-%Settlements made (in cash or in kind)~ ~ 0(Product warranty liability at the end of~  ~   the period$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4SocWK?JF%@*=PF0*8X> @z       l  & "  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } a/}  $ &                                 !Kimball Electronics, Inc. 10-Q 02/08/2018-% 13Recurring Fair Value Measurements:               December 31, 2017 (Amounts in Thousands) Level 1  Level 2   Total Assets       Cash equivalents~    $?   ~  /'Derivatives: foreign exchange contracts ?~ f ~  f -%Trading securities: mutual funds held~  ? ~   in nonqualified SERP"Total assets at fair value~ ~ f ~    Liabilities   /'Derivatives: foreign exchange contracts $?~ V? ~  V? 'Total liabilities at fair value $?~ V? ~  V?     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 $?~ - ~  - DMlxl`THz [AY[ ! " # $ % ' Total liabilities at fair value $?  ~ -   ~ - !"$#____________________________1$)Created by Morningstar Document Research.0%(http://documentresearch.morningstar.com/dcWK#=PF0*8X> @z/%% $$ ##                    l  5  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } } 1}  $ } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018\T 15Fair 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   December 31,  June 30,  Balance Sheet Location   December 31,  June 30,   ~  ~    ~  ~ 6.Derivatives Designated as Hedging Instruments:    "Foreign exchange contracts1)Prepaid expenses and other current assets~ 6~ J   Accrued expenses ~  *~ f     -%Derivatives Not Designated as Hedging      Instruments:"Foreign exchange contracts1)Prepaid expenses and other current assets~ 2 ?   Accrued expenses ~  ~ ^Total derivatives~ f~ J    ~  V?~ -$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8= I=1%)SY4gMth\4=PF0*8X> @                l  B  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative InsThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } } $      !Kimball Electronics, Inc. 10-Q 02/08/2018QIThe Effect of Derivative Instruments on Other Comprehensive Income (Loss)                        Three Months Ended  Six Months Ended      December 31   December 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~ ~   ~  ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0uTH<0$@`'=PF0*8X> @            l   QW  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative Instru 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 7} $ } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018[SThe Effect of Derivative Instruments on Condensed Consolidated Statements of Income                        Three Months Ended  Six Months Ended (Amounts in Thousands)     December 31   December 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~ J~ v  ~  "~ "Foreign exchange contracts&Non-operating income (expense) ?~     ?~  Total~ J~ ^  ~  "~   -%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)~ ~ v  ~  ~    7/Total Derivative Pre-Tax Gain (Loss) Recognized~ .~   ~  >~   in Income$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/DlJ>2&6@lmIvaU-=PF0*8X> @2&                    l  td  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1)!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } $4} $      !Kimball Electronics, Inc. 10-Q 02/08/2018 16Note 7. Investments         (Amounts in Thousands)  December 31,  June 30, ~  ~ (  SERP investments - current asset~ z  ~   0 (SERP investments - other long-term asset~ &  ~ r " Total SERP investments~ ~ v+#SERP obligation - current liability~ z~  3+SERP obligation - other long-term liability~ &~ r! Total SERP obligation~ ~ v$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4{ocWi# h=PF0*8X> @         l  bq  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } U5} $ } } $ }  } $ }  } $                        !Kimball Electronics, Inc. 10-Q 02/08/2018( 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/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } :} $ $     !Kimball Electronics, Inc. 10-Q 02/08/2018& 18Note 11. Earnings Per Share                  Three Months Ended  Six Months Ended   December 31   December 31/ '(Amounts in thousands, except per share~  ~  ~  ~  data)-%Basic and Diluted Earnings Per Share:    Net Income (Loss)~ }~ z~    ~  :6. Less: Net Income allocated to participating ?~   ?  ~   securities6. Net Income (Loss) allocated to common Share~ }~ z~    ~  *Owners   80Basic weighted average common shares outstanding~ 6~ Z~    ~   .&Dilutive effect of average outstanding ?~ ~    ~  performance shares.&Dilutive effect of average outstanding ?~ ~    ~  deferred stock units4,Dilutive weighted average shares outstanding~ 6~ ~    ~     2*Earnings (Loss) Per Share of Common Stock:    Basicףp= ӿ(\?  $?   ?Dilutedףp= ӿQ?  $?   ?D lsg[O=hW&bLtLqp= !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/ <=PF0*8X> @z/##""!!                          l  i  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } $} $ } $} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018 19Business Overview          Six Months Ended    December 31 Customer Service Years ~  ~  More than 10 Years    % of Net Sales~  %~  %# of Customers~ n~ n 5 to 10 Years% of Net Sales~  %~  %# of Customers~ N~ bLess than 5 Years% of Net Sales~ . %~  %# of Customers~ z~  Total% of Net Sales~  %~  % # of Customers~ 2~ R$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@ D}qeYL0dU=PF0*8X> @:     l  R  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 2} $ } U} $}  $ } U} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018 21Financial Overview                    At or for the    Three Months Ended   December 31  2 *(Amounts in Millions, Except for Per Share~   as a % of Net Sales ~   as a % of Net Sales  % Change Data) Net Sales33333#p@l@   ~ 2 % Gross Profit~ V333333 @ %4@   !@  %~   %+#Selling and Administrative Expenses%@@ % @    @  %~ z %Operating Incomeffffff$@333333@ %ffffff(@   333333@  %~  %"Provision for Income Taxesfffff2@333333 @   ~  %Net Income (Loss) 333333@   ~  %"Diluted Earnings per Shareףp= ӿQ?    Open Ordersfffff6n@̼g@   ~ n %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<# |pdXO%Qx"lv=PF0*8X> @               l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 2} $ } U} $}  $ } U} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018 21Financial Overview                             For the Six Months Ended     December 31  2 *(Amounts in Millions, Except for Per Share~   as a % of Net Sales ~   as a % of Net Sales  % Change Data) Net Salesfffff@33333|@   ~ 2 % Gross Profit@D@@ %33333sC@   !@  %~  %+#Selling and Administrative Expenses333334@~  %1@   333333@  %~ B %Other General Income $?~    Operating Income3@333333@ %9@   @  %~  %"Provision for Income TaxesL5@@   ~ J % Net Income?fffff1@   ~ v %"Diluted Earnings per Share $??   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<c |pdX+(vj^6=PF0*8X> @              l  C  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } I"} $ } $} $} $ } $} $      !Kimball Electronics, Inc. 10-Q 02/08/2018 21Financial Overview                      $ Net Sales by Vertical Market Three Months Ended    Six Months Ended     December 31     December 31   (Amounts in Millions)~  ~   % Change ~  ~   % Change  Automotive ]@   33333X@  ~ V %  Lk@   g@  ~ B %Medical9R@33333O@~  >  %  33333b@ `@~ B % Industrial~ 333333H@~    %  33333Z@X@~  % Public Safety+@/@~    % ~  ~~ v~  % Other@@~  2  %  ffffff@%@~ R %Total Net Sales33333#p@l@~  2  %  fffff@33333|@~ 2 %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4 |pdXP<sK=PF0*8X> @*%                  l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } a}  } $ }  } $ }  } $ }       !Kimball Electronics, Inc. 10-Q 02/08/2018 21Financial Overview          Three Months Ended  Six Months Ended   December 31   December 31 ~  ~  ~  ~  Philips 13%  14%  14%  14% ZF 14% 11% 14% 11%Nexteer Automotive 13% 13% 12% 12%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0(|pdX`9-!=PF0*8X> @:     l  a  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 8} $      !Kimball Electronics, Inc. 10-Q 02/08/2018 21Financial Overview                  Three Months Ended  Six Months Ended   December 31   December 31 (Amounts in Thousands)~  ~  ~  ~  Interest income~ J  ~ :  ~   ~  Interest expense~ >~ ~  n  ~  v/'Foreign currency/derivative gain (loss)~ 6~ ~~    ~   7/Gain (loss) on supplemental employee retirement~ j~ ~  &   ~  !plan (?SERP?) investments,$Bargain purchase gain on acquisition ? ?  ?  ~  v Other~ ~ j~    ~  #Other income (expense), net~ &~ *~    ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/82 |pdXF3t2sg?=PF0*8X> @:'                       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } $} $ }  } $}  $ } } $      !Kimball Electronics, Inc. 10-Q 02/08/2018 21Financial Overview                For the Six Months Ended  December 31, 2017  December 31, 2016 (Amounts in Thousands) Income Before Taxes  Effective Tax Rate  Income Before Taxes  Effective Tax Rate  United States~ 3  ~  % ~ jY   L=@ %Foreign~ 7@ %~ J*   333333;@  % Total~ NX@ %~    33333;@  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.|pdX.nsg[3=PF0*8X> @             l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } } $ } 0} $ } m} $ } 0      !Kimball Electronics, Inc. 10-Q 02/08/2018'Liquidity and Capital Resources          Three Months Ended   December 31, 2017   June 30, 2017  December 31, 2016 DSO ~  ~  ~  PDSOH ~   ~  ~  APD~ ~ ~  CCD~ ~ ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.~rfZNA(=PF0*8X> @"  l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources!Item 2 Unregistered Sales of Eq 31Item 6 Exhibits Exhibit IndexU } 1} $                       !Kimball Electronics, Inc. 10-Q 02/08/2018 25Cash Flows            Six Months Ended    December 31 (Amounts in thousands) ~  ~ 1 )Net cash provided by operating activities ~ &  ~  .&Net cash used for investing activities~ ~ ".&Net cash used for financing activities~ "~ "$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.xl`;<~=PF0*8X> @j        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows 31Item 6 Exhibits Exhibit IndexU } +}  '} $ } 0} $                       !Kimball Electronics, Inc. 10-Q 02/08/2018KCItem 2. Unregistered Sales of Equity Securities and Use of Proceeds          Period(  Total Number of Shares Purchased$ Average Price Paid per Share0 (Total Number of Shares Purchased as Part/ 'Maximum Dollar Value of Shares that May     " of Publicly Announced Plan2 *Yet Be Purchased Under the Plan (1)(2) (3)* "October 1, 2017 - October 31, 2017 ? $?  ?~  ( , $November 1, 2017 - November 30, 2017~ n Gz3@ ~ n~ g ,$December 1, 2017 - December 31, 2017~ *{G4@~ *~ o Total~ E zG3@~ E $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.ZNB6*YY~rf>=PF0*8X> @j         l  >'40  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq Exhibit IndexU } } $ } 7 >     !Kimball Electronics, Inc. 10-Q 02/08/2018 31Item 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)31.1 +.&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 200232.2 +^6.Certification furnished by the Chief Financial3+Officer pursuant to 18 U.S.C. Section 1350,D l~rfZ6CVu$Imx: !"#$%&'()*+,-./0123456789:;<=  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 +*,*$XBRL Taxonomy Extension Presentation+++Linkbase Document,-+ Filed herewith0.(^ In accordance with Item 601(b)(32)(ii)-/%of Regulation S-K, the certifications/0'furnished in Exhibit 32.1 and 32.2 will1not be.2&deemed ?filed? for purposes of Section33+18 of the Exchange Act. Such certifications04(will not be deemed to be incorporated by65.reference into any filing under the Securities56-Act or the Exchange Act, except to the extent(7 that the registrant specifically%8incorporates it by reference.9:$;____________________________1<)Created by Morningstar Document Research.0=(http://documentresearch.morningstar.com/@hDu2YVtCa'Y=PF0*8X> @z==<<;;887766554433221100//..-- l  ??H  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? OROR (1)OR (2)INDEX  Balance SheetIncome StatementIncome Statemen (1)!CONDENSED CONSOLIDATED STATEMEN Cash Flows!Nonoperating Income Expense netNote 2 Inventories!Note 3 Accumulated Other CompreNote 3 Accumulated Other (1)!Note 4 Commitments and Continge! 13Recurring Fair Value Measure! 15Fair Value of Derivative Ins!The Effect of Derivative InstruThe Effect of Derivative (1) 16Note 7 Investments!Note 9 Stock Compensation Plans 18Note 11 Earnings Per Share 19Business Overview 21Financial Overview 21Financial Ov (1) 21Financial Ov (2) 21Financial Ov (3) 21Financial Ov (4) 21Financial Ov (5)!Liquidity and Capital Resources  25Cash Flows!Item 2 Unregistered Sales of Eq 31Item 6 ExhibitsU } } $ } 7 ?     !Kimball Electronics, Inc. 10-Q 02/08/2018 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)31.1 +.&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 200232.2 +^6.Certification furnished by the Chief FinancialD lxl`<]k"Aew9D !"#$%&'()*+,-./0123456789:;<=>  3 +Officer pursuant to 18 U.S.C. Section 1350,!!1!)as adopted pursuant to Section 906 of the""""Sarbanes-Oxley Act of 2002# 101.INS +##XBRL Instance Document$ 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 ++,+$XBRL Taxonomy Extension Presentation,,,Linkbase Document-.+ Filed herewith0/(^ In accordance with Item 601(b)(32)(ii)-0%of Regulation S-K, the certifications/1'furnished in Exhibit 32.1 and 32.2 will2not be.3&deemed ?filed? for purposes of Section34+18 of the Exchange Act. Such certifications05(will not be deemed to be incorporated by66.reference into any filing under the Securities57-Act or the Exchange Act, except to the extent(8 that the registrant specifically%9incorporates it by reference.:;$<____________________________1=)Created by Morningstar Document Research.0>(http://documentresearch.morningstar.com/BXd&6 3uY%}FsJ>2 =PF0*8X> @z>>==<<99887766554433221100//.. Root Entry FBook  I  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$