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They should not be construed as a guarantee that such results or events will, in fact, occur or be realized as actual results may differ materially from those expressed in these forward-looking statements.
−Removed: The statements may be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “forecasts,” “seeks,” “likely,” “future,” “may,” “might,” “should,” “would,” “will,” and similar expressions.
+Added: The statements may be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “forecasts,” “seeks,” “likely,” “future,” “may,” “might,” “should,” “would,” “could,” “will,” “potentially,” and similar expressions.
It is not possible to foresee or identify all factors that could cause actual results to differ from expected or historical results.
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At any time when we make forward-looking statements, we desire to take advantage of the “safe harbor” which is afforded such statements under the Private Securities Litigation Reform Act of 1995 where factors could cause actual results to differ materially from forward-looking statements.
−Removed: Kimball Electronics was founded in 1961 and was incorporated in 1998.
−Removed: We are a global, multifaceted manufacturing solutions provider.
−Removed: We provide contract electronics manufacturing services (“EMS”) and diversified manufacturing services, including engineering and supply chain support, to customers in the automotive, medical, industrial, and public safety end markets.
−Removed: We offer a package of value that begins with our core competency of producing durable electronics and have expanded into diversified contract manufacturing services for non-electronic components, medical disposables, precision molded plastics, and production automation, test, and inspection equipment.
−Removed: This package of value includes our set of robust processes and procedures that help us ensure that we deliver the highest levels of quality, reliability, and service throughout the entire life cycle of our customers’ products.
−Removed: We believe our customers appreciate our body of knowledge as it relates to the design and manufacture of their products that require durability, reliability, the highest levels of quality control, and regulatory compliance.
−Removed: We deliver award-winning service from our highly integrated global footprint which is enabled by a largely common operating system, a standardization strategy, global procedures, and teamwork.
+Added: Kimball Electronics was founded in 1961 and incorporated in 1998.
+Added: We are a global, multifaceted manufacturing solutions provider of contract electronics manufacturing services (“EMS”) and diversified manufacturing services, including engineering and supply chain support, to customers in the automotive, medical, industrial, and public safety end markets.
+Added: We deliver a package of value that begins with our core competency of producing durable electronics and has expanded into diversified contract manufacturing services for non-electronic components, medical disposables, drug delivery solutions, precision molded plastics, and production automation, test, and inspection equipment.
+Added: Our design and manufacturing expertise coupled with robust processes and procedures help us ensure that we deliver the highest levels of quality, reliability, and service throughout the entire life cycle of our customers’ products.
+Added: We deliver award-winning service across our global footprint and operating system that is enabled by highly integrated procedures, standardization, and teamwork.
Our Customer Relationship Management (“CRM”) model is key to providing our customers convenient access to our global footprint and all of our services throughout the entire product life cycle.
−Removed: Because our customers are in businesses where engineering changes must be tightly controlled and long product life cycles are common, our track record of quality, financial stability, social responsibility, and commitment to long-term relationships is important to them.
+Added: Because our customers are in businesses where engineering changes must be tightly controlled and long product life cycles are common, they value our track record of quality, financial stability, social responsibility, and commitment to long-term relationships.
We have been producing safety critical electronic assemblies for our automotive customers for over 35 years.
−Removed: During this time, we have built up a body of knowledge that has not only proven to be valuable to our automotive customers, but to our medical, industrial, and public safety customers as well.
−Removed: We have been successful in growing and diversifying our business by leveraging our automotive experience and know-how in the areas of design and process validation, traceability, process and change control, and lean manufacturing to create valuable and innovative solutions for customers in the medical, industrial, and public safety end market verticals.
−Removed: These solutions include diversified contract manufacturing services for medical disposables, precision molded plastics, and design, production, and servicing of automation, test, and inspection equipment for industrial applications.
−Removed: We have harmonized our quality systems to be compliant with various important industry certifications and regulatory requirements.
−Removed: This allows us to take advantage of other strategic points of leverage in the supply chain and within
−Removed: our operations so we can cost-effectively manufacture electronic and non-electronic products in the same production facility for customers from all four of our end market verticals.
−Removed: Many of our customers are multinational companies that sell their products in multiple regions of the world.
−Removed: For these customers, it is important for them to be able to leverage their investment in their supply partner relationships such that the same partner provides them with engineering, manufacturing, and supply chain support in multiple regions of the world.
−Removed: It is common for us to manufacture the same product for the same customer in multiple locations.
−Removed: Our strategy for expanding our global footprint has aligned us with the preferences of the customers in our four end market verticals and has positioned us well to support their global growth initiatives.
−Removed: Our global systems, procedures, processes, and teamwork combined with our CRM model have allowed us to accomplish this goal for many of our largest customers.
−Removed: Our global processes and central functions that support component sourcing, procurement, quoting, and customer pricing provide commonality and consistency among the various regions in which we operate.
−Removed: We have a central, global sourcing organization that utilizes procurement processes and practices to help secure sources from around the world and to ensure sufficient availability of components and a uniform approach to pricing while leveraging the purchase volume of the entire organization.
−Removed: Customer pricing for the products we produce is primarily managed centrally utilizing a standardized quoting model regardless of where our customers request their products to be produced.
−Removed: Our CRM model combines members of our team from within our manufacturing facilities and members of our business development team who reside remotely and nearer to our customers around the world.
+Added: During this time, we have developed expertise that has proven to be valuable not only to our automotive customers, but also to our medical, industrial, and public safety customers as well.
+Added: We have been successful in growing and diversifying our business by leveraging this experience and know-how in the areas of design and process validation, traceability, process and change control, and lean manufacturing to create valuable and innovative solutions for customers across these verticals.
+Added: This includes diversified contract manufacturing services for medical disposables, precision molded plastics, and design, production, and servicing of automation, test, and inspection equipment for industrial applications.
+Added: We have harmonized our quality systems to be compliant with various important industry certifications and regulatory requirements, which allows us to take advantage of other strategic points of leverage in the supply chain, and within our operations, to cost-effectively manufacture electronic and non-electronic products in the same production facility for customers from all four end market verticals.
+Added: Many of our customers are multinational companies selling products in multiple regions of the world.
+Added: These customers leverage investments in their supplier relationships with partners like us that can provide them with engineering, manufacturing, and supply chain support in multiple regions of the world.
+Added: We commonly manufacture the same product for the same customer in multiple locations.
+Added: Coupled with our CRM model and our global systems, procedures, processes, and teamwork, our strategy for expanding our global footprint has aligned us with the preferences of the customers in our four end market verticals and has positioned us well to support their global growth initiatives.
+Added: Our global component sourcing, procurement, quoting, and customer pricing processes and central functions provide our customers with commonality and consistency across the various regions where we operate.
+Added: For example, our central sourcing organization uses global procurement processes and strategies to ensure sufficient availability of components and a uniform approach to pricing while leveraging the purchase volume of the entire organization.
+Added: We manage customer pricing for the products we produce primarily with a standardized, global quoting model that we can apply seamlessly wherever our customers ask us to produce their products.
+Added: Our CRM model combines experts from our manufacturing facilities and members of our business development team who reside remotely and nearer to our customers around the world.
We also have cross-functional teams in the areas of quality, operational excellence, quoting, and design engineering with representatives from our various locations that provide support to our teams on a global basis.
The skill sets of these team members and the clarity in their roles and responsibilities help provide our customers with a strong conduit that is critical to execution and forming a strong relationship.
−Removed: We have institutionalized a customer scorecard process that provides all levels of our company with valuable feedback that helps us drive the actions for continuous improvement.
−Removed: Our customer scorecard process has helped us deliver award-winning service and build loyalty with our customers.
+Added: We have institutionalized a customer scorecard process that provides all levels of our company with valuable feedback that drives actions for continuous improvement.
+Added: This process has helped us deliver award-winning service and build loyalty with our customers.
Our corporate headquarters is located at 1205 Kimball Boulevard, Jasper, Indiana.
Production occurs in our facilities located in the United States, China, Mexico, Poland, Romania, Thailand, and Vietnam.
−Removed: Our services are sold globally on a contract basis, and we produce products to our customers’ specifications.
−Removed: Our manufacturing services primarily include:
+Added: We also have operations in India and Japan.
+Added: Our services are sold globally on a contract basis, and we produce products to our customers’ specifications with manufacturing services which primarily include:
• Design services and support;
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• Drug delivery devices and solutions with and without electronics;
+Added: • Class 8 clean room assembly, cold chain and product sterilization management;
• Design engineering and manufacturing of automation, test, and inspection equipment;
• Design engineering and production of precision molded plastics;
−Removed: • Software design capabilities;
+Added: • Software design;
• Complete product life cycle management.
−Removed: We pride ourselves on the fact that we pay close attention to the evolving needs and preferences of our customers.
−Removed: As we have done in the past, we will continue to look for opportunities to grow and diversify our business by expanding our package of value and our global footprint.
+Added: We pride ourselves on the fact that we pay close attention to the evolving needs and preferences of our customers, and we continue to look for opportunities to grow and diversify our business by expanding our package of value and global footprint.
Reporting Segment
−Removed: Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance.
−Removed: Each of our business units qualifies as an operating segment with its results regularly reviewed by our chief operating decision maker.
−Removed: Our chief operating decision maker is our Chief Executive Officer.
−Removed: Our operating segments meet the aggregation criteria under the current accounting guidance for segment reporting.
−Removed: As of June 30, 2021, all of our business units provide contract manufacturing services for electronic and other assemblies or components primarily in automotive, medical, industrial, and public safety applications, all to the specifications and designs of our customers.
−Removed: The nature of the products, the production process, the type of customers, and the methods used to distribute the products, all have similar characteristics.
−Removed: Each of our business units service customers in multiple markets and many of our customers’ programs are manufactured and serviced by multiple business units.
+Added: Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and assessing performance.
+Added: Each of our business units qualifies as an operating segment with its results regularly reviewed by our chief operating decision maker, the Chief Executive Officer.
+Added: Our operating segments meet the aggregation criteria under the accounting guidance for segment reporting.
+Added: As of June 30, 2022, all of our operating segments provided contract manufacturing services, including engineering and supply chain support, for the production of electronic assemblies and other products including medical devices, medical disposables, precision molded plastics, and automation, test, and inspection equipment primarily in automotive, medical, industrial, and public safety applications, to the specifications and designs of our customers.
+Added: The nature of the products, the production process, the type of customers, and the methods used to distribute the products have similar characteristics across all our operating segments.
+Added: Each of our operating segments services customers in multiple markets, and many of our customers’ programs are manufactured and serviced by multiple operating segments.
We leverage global processes such as component procurement and customer pricing that provide commonality and consistency among the various regions in which we operate.
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Our Business Strategy
−Removed: We intend to achieve sustained, profitable growth in the markets we serve by supporting the global growth initiatives of our customers, and we will continue our development into a multifaceted manufacturing solutions company.
+Added: We intend to achieve sustained, profitable growth in the markets we serve by supporting the global growth initiatives of our customers as a multifaceted manufacturing solutions company.
Key elements of executing our strategy include:
−Removed: • Leveraging Our Global Footprint – continue our strategy of utilizing our presence in key global regions, including new potential country locations and/or facility expansion as our customer demands dictate;
−Removed: • Expanding Our Package of Value – enhance our core strengths and expand upon our package of value through diversified contract manufacturing services in areas such as complex system assembly, specialized processes, precision molded plastics;
+Added: • Leveraging Our Global Footprint – continue our strategy of utilizing our presence in key regions worldwide, primarily focused on expansions of existing facilities, as well as potential new geographic regions, as our customer demands dictate;
+Added: • Expanding Our Package of Value – enhance our core strengths and expand our package of value through contract manufacturing services in areas such as complex system assembly, specialized processes, and precision molded plastics with particular emphasis on Kimball medical solutions;
• Expanding Our Markets – explore opportunities that will broaden existing or establish new markets, capabilities, or technologies such as automation, test, and inspection equipment for industrial applications.
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Our services support the complete product life cycle of our customers’ products, and our processes and capabilities cover a range of products from high volume-low mix to high mix-low volume.
−Removed: We collaborate with third-party design services companies to bring innovative, complete design solutions to our customers.
−Removed: We offer Design for Excellence input to our customers as a part of our standard package of value.
−Removed: We use sophisticated software tools to integrate the supply chain in a way that provides our customers with the flexibility their business requires.
+Added: We bring innovative, complete design solutions to our customers.
+Added: We offer Design for Excellence input to our customers as a part of our standard package of value, and we use sophisticated software tools to integrate the supply chain in a way that provides our customers with the flexibility their business requires.
Our robust new product introduction process and our extensive manufacturing capabilities give us the ability to execute to the various quality and reliability expectations of our customers in each of our end market verticals.
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Our customer focus and dedication to unparalleled excellence in engineering and manufacturing has resulted in proven success in the contract manufacturing industry.
−Removed: Personal relationships are important to us.
−Removed: We strive to build long-term global partnerships.
+Added: Personal relationships are important to us, and we strive to build long-term global partnerships.
Our commitment to support our customers is backed by our history and demonstrated performance for the past 60 years.
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Major Competitive Factors
−Removed: Key competitive factors in the markets we serve include competitive pricing, quality and reliability, engineering design services, production flexibility, on-time delivery, customer lead time, test capability, and global presence.
+Added: Key competitive factors in the markets we serve include quality and reliability, engineering design services, production flexibility, on-time delivery, customer lead time, test capability, competitive pricing, and global presence.
Numerous contract manufacturing service providers compete globally for business from existing and potential customers.
We also face competition from our customers’ own capacity and capabilities to in-source production.
−Removed: Growth in the EMS industry is created through the proliferation of electronic components in today’s advanced products and the continuing trend of original equipment manufacturers in the electronics industry subcontracting the assembly process to companies with a core competency in this area.
+Added: The proliferation of electronic components in today’s advanced products and the continuing trend of original equipment manufacturers in the electronics industry subcontracting the assembly process to companies with a core competency in this area drive growth in the EMS industry.
The nature of the EMS industry is such that the start-up of new customers and new programs to replace expiring programs occurs frequently.
−Removed: New customers and program start-ups generally cause margin dilution early in the life of a program, which is generally recovered as the program becomes established and matures.
+Added: New customers and program start-ups generally cause margin dilution early in the life of a program, which is often recovered as the program becomes established and matures.
Our continuing success depends upon our ability to replace expiring customers/programs with new customers/programs.
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Our Competitive Strengths
−Removed: Our competitive strengths derive from our experience of producing safety critical electronic assemblies for automotive customers for over 35 years and leveraging this experience to create valuable and innovative solutions for customers in different industries.
−Removed: Our core strengths include:
−Removed: • Our core competency of producing durable electronics;
−Removed: • Our body of knowledge as it relates to the design and manufacture of products that require high levels of quality control, reliability, and durability;
−Removed: • Our highly integrated, global footprint;
−Removed: • Our capability to provide our customers diversified contract manufacturing services for non-electronic components, medical disposables, precision molded plastics, and automation, test, and inspection equipment;
−Removed: • Our CRM model and our customer scorecard process;
−Removed: • Our ability to provide our customers with valuable input regarding designs for improved manufacturability, reliability, and cost;
−Removed: • Our quality systems, industry certifications, and regulatory compliance;
−Removed: • Our integrated supply chain solutions and competitive bid process resulting in competitive raw material pricing;
+Added: We derive our competitive strengths from our experience of producing safety critical electronic assemblies for automotive customers for over 35 years and leveraging this experience to create valuable and innovative solutions for customers in different industries.
+Added: Our strengths include:
+Added: • Core competency of producing durable electronics;
+Added: • Body of knowledge as it relates to the design and manufacture of products that require high levels of quality control, reliability, and durability;
+Added: • Highly integrated, global footprint;
+Added: • Capability to provide our customers diversified contract manufacturing services for non-electronic components, medical disposables, precision molded plastics, and automation, test, and inspection equipment;
+Added: • CRM model and our customer scorecard process;
+Added: • Ability to provide our customers with valuable input regarding designs for improved manufacturability, reliability, and cost;
+Added: • Quality systems, industry certifications, and regulatory compliance;
+Added: • Integrated supply chain solutions and competitive bid process resulting in competitive raw material pricing;
• Complete product life cycle management.
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Our competition includes EMS companies such as Benchmark Electronics, Inc., Flex Ltd., Jabil Inc., Plexus Corp., and Sanmina Corporation.
−Removed: We do not have a significant share of the EMS market and were ranked the 20 th largest global EMS provider for calendar year 2020 by Manufacturing Market Insider in the March 2021 edition published by New Venture Research.
+Added: We do not have a significant share of the EMS market and were ranked the 21st largest global EMS provider for calendar year 2021 by Manufacturing Market Insider in the March 2022 edition published by New Venture Research.
As of June 30, 2022, we have eleven manufacturing facilities with two located in Indiana, two in China, and one located in each of California, Florida, Mexico, Poland, Romania, Thailand, and Vietnam.
−Removed: Our software design services are primarily performed at our location in India.
−Removed: We continually assess our capacity needs and evaluate our operations to optimize our service levels for supporting our customers’ needs around the globe.
+Added: Our software design services are primarily performed at our location in India, and other support services are performed at our location in Japan.
+Added: We continually assess our capacity needs and evaluate our operations to optimize our service levels for supporting our customers’ needs around the globe, and we have recently expanded our facility in Thailand and are in the process of expanding the facilities in Mexico and Poland.
See Item 1A - Risk Factors for information regarding financial and operational risks related to our international operations.
Consolidated sales revenue is generally not affected by seasonality.
−Removed: While the total electronic assemblies market has broad applications, our customers are concentrated in the automotive, medical, industrial, and public safety industries.
+Added: While the total electronic assemblies market has broad applications, our customers are concentrated in the automotive, medical, industrial, and public safety end markets.
Sales by industry as a percent of net sales for each of the three years in the period ended June 30, 2022 were as follows:
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Total 100% 100% 100%
−Removed: Included in our sales were a significant amount to Nexteer Automotive, Philips, and ZF, which accounted for the following portions of net sales:
+Added: Included in our sales were a significant amount to Nexteer Automotive and Philips, which accounted for the following portions of net sales:
Year Ended June 30
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Philips 15% 15% 16%
−Removed: * amount is less than 10% of total
The nature of the contract manufacturing business is such that start-up of new programs to replace expiring programs occurs frequently.
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We believe that maintaining close communication with suppliers helps minimize potential disruption in our supply chain.
−Removed: The EMS industry is currently experiencing component shortages, component allocations, and shipping delays, particularly with semiconductors, driven by the strong demand in consumer electronics and the beginning of a global recovery, and complicated by the continued impact of COVID-19.
−Removed: Component shortages or allocations could increase component costs and potentially interrupt our operations and negatively impact our ability to meet commitments to customers.
−Removed: The semiconductor shortage has adversely impacted global manufacturing, including the automotive industry, leading to automakers temporarily suspending production in recent months.
−Removed: We have taken various actions to mitigate the risk and minimize the impact to our customers as well as the adverse effect component shortages or allocations could have on our results.
+Added: The EMS industry is currently experiencing component shortages, component allocations, cost inflation, and shipping delays, particularly with semiconductors, driven by the strong demand in electronics and the global recovery from the impact of COVID-19, complicated by its continued impact.
+Added: Component shortages or allocations could continue to increase component costs and potentially interrupt our operations and negatively impact our ability to meet commitments to customers.
+Added: The semiconductor shortage has adversely impacted global manufacturing, including the automotive industry, leading to automakers temporarily suspending production at times.
+Added: We take various actions to attempt to mitigate the risk and minimize the impact to our customers as well as the adverse effect component shortages or allocations could have on our results.
+Added: Through contractual pricing arrangements and negotiations with our customers, we attempt to mitigate the adverse effect that cost increases could have on our results.
Raw materials are normally acquired for specific customer orders and may or may not be interchangeable among products.
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Corporate Social Responsibility
−Removed: We are committed to our environmental, social, and governance philosophies and practices, which have been a part of who we are since our founding in 1961.
−Removed: To showcase how our employees around the world share a strong sense of responsibility to protect the environment, sustain a safety focus at our facilities, and give back in meaningful ways to the communities where we live and work, we issued our latest annual Environmental, Social & Governance Report (“ESG Report”) in December 2020.
+Added: We are committed to responsible, sustainable environmental, social, and governance philosophies and practices, which have been a part of our fabric since our founding in 1961.
+Added: To showcase how our employees around the world share a strong sense of responsibility to protect the environment, sustain a safety focus at our facilities, and give back in meaningful ways to the communities where we live and work, we issued our latest annual Environmental, Social & Governance Report (“ESG Report”) in February 2022.
The ESG Report highlights the long-term environmental, social, and governance principles and practices designed to support the Company’s commitment to sustaining “lasting relationships” and achieving “global success” with its stakeholders wherever Kimball Electronics’ touch is felt throughout the world.
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profitability and financial resources give us the freedom to shape our future and achieve our vision.
−Removed: The ESG Report is posted on our website.
+Added: The ESG Report is posted on our website at https://www.kimballelectronics.com/esg.
+Added: The Company’s website and the information contained therein, or incorporated therein, are not intended to be incorporated into this Annual Report on Form 10-K.
+Added: Socially Responsible Supply Chain
+Added: We are committed to the use of a socially responsible supply chain to reduce the risk of human rights violations and the use of conflict minerals (tin, tungsten, tantalum and gold, or “3TG”) from the Democratic Republic of Congo and certain adjoining countries.
+Added: Our efforts include requiring our suppliers to undertake reasonable due diligence within their supply chain to ensure that the 3TG in the materials we source from them do not directly or indirectly contribute to significant adverse human rights impacts, as well as conducting due diligence before allowing a potential supplier to become one of our preferred suppliers.
+Added: We request the return of reporting forms related to conflict minerals from our suppliers under the Responsible Minerals Initiative, or RMI, Conflict Minerals Survey.
+Added: Further, we seek to remove any suppliers that continue to fail to meet our supplier and conflict minerals policies after being provided the opportunity to remedy non-compliance via implementation of a corrective action plan.
+Added: We also conduct recurring internal trainings for all employees and certain select contractors on export compliance, anti-corruption and anti-slavery, and insider trading.
+Added: In addition, Kimball Electronics is a member of the Responsible Minerals Initiative, which is evaluating the supply chain risks of conflict minerals and other minerals (e.g., cobalt, mica) and studying how to mitigate those risks.
+Added: As reflected in our Vision and Guiding Principles, Kimball Electronics is committed to the highest standards of conduct in its business dealings.
+Added: We are a human-centered company that fully supports human rights.
+Added: For us, human rights are more than just being compliant--they are about doing the right thing.
+Added: Our Guiding Principles outline the critical role Kimball plays as a corporate citizen for our customers, our people, our partners, our environment, our Share Owners, and our communities.
+Added: Our human rights beliefs are deeply rooted in our Guiding Principles and expressed in our Global Human Rights Policy, which is supported by annual review that explains some of the practical actions that we take each year to implement our Policy.
+Added: Kimball has been built upon the tradition of pride in craftsmanship, mutual trust, personal integrity, respect for dignity of the individual, a spirit of cooperation, and a sense of family and good humor.
+Added: We seek to enhance this culture as we grow.
+Added: We believe that no company should prosper while violating the basic human rights of others whether through unlawful slavery, servitude, forced or compulsory labor, or otherwise exploitative means.
+Added: We believe in upholding principles of human rights, fair remuneration and economic inclusion, fair labor practices, worker safety, and observing fair labor practices within our organization and our supply chain.
+Added: Diversity, Equity, Inclusion, and Belonging
+Added: We value and work to promote a diverse, equitable and inclusive work environment.
+Added: We are committed to holding ourselves accountable, taking action to continuously improve our policies and practices, and to uphold the principles that encompass diversity, equity, inclusion, and belonging as outlined in our Diversity, Equity, Inclusion, and Belonging (“DEI&B”) statement.
+Added: Our strategy is to achieve excellence in customer service, employee relations, and business objectives through creativity, responsiveness, and innovation as a result of increased well-being, sense of belonging, and meaningful work for our employees.
+Added: We actively promote DEI&B, and incorporate DEI&B into our culture, values, and strategies.
+Added: We provide a report on the diversity of our employees to the Board of Directors annually.
+Added: Contributing to Our Communities
+Added: One of our Guiding Principles is to strive to help our communities be great places to live.
+Added: We live this Guiding Principle and further the goals of our Human Rights Policy when we contribute and encourage our employees to contribute to our local communities.
+Added: In 2022, we committed $100,000 to Southwestern Indiana Child Advocacy Center Coalition (“SWICACC”), a safe reporting center for abused or neglected children that serves seven counties in southwestern Indiana.
+Added: On International Women’s Day 2021, we donated $5,000 to Water To Thrive to build a freshwater well system for a village in Ethiopia because safe, fresh drinking water is a basic human right.
+Added: We donated $20,000 and over 200 hours of paid work time so that our employees could volunteer to help build a house for Greater Indy Habitat for Humanity.
+Added: We donated $10,000 each to the Red Cross in Poland and Romania to aid in Ukrainian relief efforts, and gave our employees in Poland two days of paid time off for volunteering to help refugees.
+Added: Kimball Electronics Gives, an employee-based giving circle, raised enough money to offer grants totaling $10,500 to eight worthy causes.
Environment and Energy Matters
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Federal, foreign, and state regulations may control the allocation of fuels available to us, but to date we have experienced no interruption of production due to such regulations.
+Added: Refer to the discussion in Item 1A - Risk Factors for further details of the legal and regulatory initiatives related to environmental matters including climate change that could adversely affect our business, results of operations, and financial condition.
Our People are the Company:
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As of June 30, 2022, Kimball Electronics employed approximately 7,200 people worldwide, with approximately 1,200 located in the United States and approximately 6,000 located in foreign countries.
−Removed: Approximately fifty percent of our worldwide workforce is female, including fifty percent of our executive officers.
−Removed: percent of our executive officers are African American and ten percent are Hispanic or Latino.
−Removed: We continue to execute on our commitment to diversity, equity, and inclusion, and exhibit our commitment to gender, racial, and ethnic diversity by striving toward the corporate goals we outline in our Global Human Rights Policy, including by:
+Added: Half of the independent members of the Board of Directors are female, along with four of our nine executive management team members and over 50% of our global workforce.
+Added: We continue to execute on our commitment to diversity, equity, inclusion,
+Added: and belonging, and exhibit our commitment to gender, racial, and ethnic diversity by striving toward the corporate goals we outline in both our Global Human Rights Policy and Diversity, Equity, Inclusion, and Belonging statement, including by:
• Increasing female representation globally at the executive and senior management levels;
• Increasing racial and ethnic diversity at the executive and senior management levels so our leadership will reflect our organization and the communities in which we operate;
−Removed: • Holding leadership accountable for diversity, equity, and inclusion outcomes.
+Added: • Holding leadership accountable for diversity, equity, inclusion, and belonging outcomes.
The average tenure within our workforce is 6.15 years, and we work hard to mitigate turnover risk by consistently and formally surveying our workforce about how well we are living up to our People Guiding Principles by asking them to anonymously rate us on a scale from 1 (low) to 10 (high).
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For additional information, see the Company’s Proxy Statement to be filed for its annual meeting of Share Owners to be held November 11, 2022 under the caption “Our People are the Company:
−Removed: Human Capital Management.”
+Added: Human Capital Management and Succession Planning Oversight.”
Available Information
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.