Item 2.02 Results of Operations and Financial Condition On August 3, 2020, Kimball International, Inc. (the "Company") issued an earnings release for the quarter and fiscal year ended June 30, 2020. The earnings release is attached as Exhibit 99.1.




Item 2.05 Costs Associated with Exit or Disposal Activities
On August 1, 2020, the Board of Directors (the "Board") of the Company approved
initiating the next phase of the Company's transformation plan (the
"Transformation Plan") that will align the Company's business units to a new
market-centric orientation and is expected to yield additional cost savings that
will enable the Company to effectively manage through the downturn caused by the
COVID-19 pandemic. The Transformation Plan builds on the initial strategy and
transformation plan announced in June 2019.
The following is a summary of the activities the Company will be undertaking
pursuant to the Transformation Plan:
•As part of the previously announced plan to consolidate manufacturing of all
brands into one world-class global operations group, the Company is streamlining
its manufacturing facilities by leveraging production capabilities across all
facilities, establishing centers of excellence, and setting up processes to
facilitate flexing of product between facilities in response to volume
fluctuations. The Company is also reviewing its overall facility footprint to
identify opportunities to reduce capacity and gain efficiencies.
•The Transformation Plan includes creating four new market centric business
units of Workplace, Health, Hospitality and eBusiness.
•The Company will streamline its workforce to align with the new organizational
structure and respond to lower volumes created by the COVID-19 pandemic,
creating a more efficient organization to deliver on the Company's Connect 2.0
strategy announced today.
The Transformation Plan will begin immediately, and the Company expects a
substantial majority of the underlying activities of these aforementioned
actions to be completed within two years.
The Company currently estimates it will incur total pre-tax restructuring
charges of approximately $17.0 million to $18.0 million related to the
initiatives under the Transformation Plan, with $14.0 million to $15.0 million
expected to be recorded in fiscal year 2021, and the remainder in fiscal year
2022. The restructuring charges are expected to consist of approximately $9.0
million to $9.4 million for severance and other employee-related costs, $4.0
million to $4.3 million for facility costs, and $4.0 million to $4.3 million for
lease and other asset impairment. Approximately 75% of the total cost estimate
is expected to be cash expense.
In addition to expected savings from the Transformation Plan, the Company is
also targeting additional savings in fiscal year 2021 related to other cost
reduction initiatives the Company is undertaking that are not included in the
Transformation Plan. The Company currently estimates that the total anticipated
pre-tax savings in fiscal year 2021 related to both the Transformation Plan and
other cost reduction initiatives will be approximately $20.0 million.

Item 7.01 Regulation FD Disclosure Attached hereto as Exhibit 99.2 is an investor presentation that supplements the information to be discussed on the Kimball International, Inc. earnings call to be held on August 3, 2020 at 5:00 p.m. Eastern Time. The presentation attached as Exhibit 99.2 is incorporated into this Item 7.01 by reference.




Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are furnished as part of this report:
Exhibit
Number               Description
99.1                   Earnings Release dated August 3, 2020
99.2                   Q4 FY20 Earnings and Strategy Update
104                  Cover Page interactive data file (embedded within the Inline XBRL document)

The information in this Current Report on Form 8-K set forth in Item 2.02, Item 7.01, and Exhibits 99.1 and 99.2, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, that is being furnished under Item 2.02 and Item 7.01 shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing. Certain statements contained within this document are considered "forward-looking" under the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of words such as "expects", "anticipates", "approximately" and "estimates". These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including, but not limited to, the Company's ability to successfully complete and to fully realize the expected benefits of the Transformation Plan. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2019 and other filings with the SEC.


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