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<p><b><font size="2">UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C. &nbsp;20549<br>
</font>
<br>
FORM 8-K</b></p>
<p align="center"><b>CURRENT REPORT<br>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</b></p>
<p align="center"><br>
Date of Report (Date of earliest event reported) &nbsp;&nbsp;&nbsp;<u>September
21, 2005&nbsp; (September 15, 2005)</u><br>
<br>
</p>
<table border="0" cellspacing="1" width="450">
  <tr>
    <td>
    <p align="center"><b><font size="5">KIMBALL INTERNATIONAL, INC.</font></b></td>
  </tr>
  <tr>
    <td><hr SIZE="1"></td>
  </tr>
  <tr>
    <td>
    <p align="center"><font size="2">(Exact name of registrant as specified in
    its charter)</font></td>
  </tr>
</table>
<p align="center"></p>
<center>
<table cellSpacing="0" width="624" border="0">
  <tr>
    <td width="33%">&nbsp;</td>
    <td width="33%">&nbsp;</td>
    <td width="33%">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">Indiana</td>
    <td>
    <p align="center">0-3279</td>
    <td>
    <p align="center">35-0514506</td>
  </tr>
  <tr>
    <td>
    <p align="center"></p>
    <hr width="90%" SIZE="1"></td>
    <td>
    <p align="center"></p>
    <hr width="48%" SIZE="1"></td>
    <td>
    <p align="center"></p>
    <hr width="90%" SIZE="1"></td>
  </tr>
  <tr>
    <td align="center"><font size="2">(State or other jurisdiction of</font></td>
    <td align="center"><font size="2">(Commission File</font></td>
    <td align="center"><font size="2">(IRS Employer Identification No.)</font></td>
  </tr>
  <tr>
    <td align="center"><font size="2">incorporation)</font></td>
    <td align="center"><font size="2">Number)</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table cellSpacing="0" width="624" border="0">
  <tr>
    <td width="55%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="41%">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td>
    <p align="center">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">1600 Royal Street, Jasper, Indiana</td>
    <td>&nbsp;</td>
    <td>
    <p align="center">47549-1001</td>
  </tr>
  <tr>
    <td>
    <p align="center"></p>
    <hr width="64%" SIZE="1"></td>
    <td>&nbsp;</td>
    <td>
    <p align="center"></p>
    <hr width="48%" SIZE="1"></td>
  </tr>
  <tr>
    <td align="center"><font size="2">(Address of principal executive offices)</font></td>
    <td>&nbsp;</td>
    <td align="center"><font size="2">(Zip Code)</font></td>
  </tr>
</table>
</center>
<p align="center">Registrant's telephone number, including area code &nbsp;&nbsp;<u>(812)
482-1600</u></p>
<table border="0" cellspacing="1" width="350">
  <tr>
    <td>
    <p align="center">Not Applicable</td>
  </tr>
  <tr>
    <td><hr SIZE="1"></td>
  </tr>
  <tr>
    <td>
    <p align="center"><font size="2">(Former name or former address, if changed
    since last report)</font></td>
  </tr>
</table>
</center>
<p align="left"><font size="2">Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2.
below):</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
<p align="left"><font size="2">[&nbsp;&nbsp; ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
<p align="center">&nbsp;</p>
<p align="center">1</p>
<hr SIZE="1">
<p align="left"><b>Item 2.05 Costs Associated with Exit or Disposal Activities</b><br>
<br>
In response to market changes and the need to be more responsive to our
customers and more effective in our operations, on September 15, 2005 Kimball
International approved plans to continue to sharpen its focus within the
Furniture and Cabinets segment. In recent years, Kimball has exited the
unprofitable branded residential furniture market, the wood veneer market and
the wood dimension market, all with the intent of increasing management
attention and focus on growing its primary markets and improving profitability.
As part of the plans, the Company intends to sell a forest products hardwood
lumber business unit and a business unit located in Pennsylvania which produces
and sells fixed-wall furniture systems, and to consolidate administrative,
marketing and business development functions within the segment to better serve
primary markets. <br>
<br>
Total pre-tax restructuring expenses related to the above actions are expected
to be approximately $18.8 to $20.8 million, including a loss on the sale of
assets of $11.5 to $13.5 million, software impairment of $3.6 million,
acceleration of software amortization of $2.2 million, employee severance costs
of $1.0 million and fixed asset impairment and other costs of $0.5 million.
Approximately 90% of the cost estimate is expected to be non-cash expense. Both
the hardwood lumber and fixed-wall furniture systems operations had been
operating at a loss, which in total, before corporate allocations, was
approximately $4.0 million pre-tax for the prior fiscal year 2005. Fiscal year
2005 net sales of these two operations totaled approximately $60 million. <br>
<br>
As part of the simplification and standardization of business processes, a
portion of the Company's current integrated Enterprise Resource Planning
software will be redesigned. As a result of this, the Company anticipates the
execution of all of the above outlined activities to take approximately three
years, and therefore the amortization of the current software will be
accelerated over this period of time. The Company estimates cost structure
improvement beginning in fiscal year 2007, including the avoidance of the
hardwood lumber and fixed-wall furniture systems operating losses, to be
approximately $7.0 million pre-tax per year. It is anticipated that a portion of
the initial savings will be expended for operating inefficiencies directly
related to the execution of these plans. <br>
<br>
The Company continues to evaluate its current manufacturing capabilities and
capacities to determine the optimal alignment with its new organizational
structure and its tightened focus on this segment. <br>
<br>
The exit of the hardwood lumber operations and the fixed-wall furniture systems
operations will be classified as Discontinued Operations while the remaining
costs will be classified as Restructuring in the Company's Consolidated
Statements of Income. <br>
<br>
<br>
<b>Item 2.06 Material Impairments</b><br>
<br>
The information set forth above under Item 2.05 is incorporated by reference
into this Item 2.06.<br>
&nbsp;</p>
<p align="center">2</p>
<p align="center"></p>
<hr SIZE="1"><center>
<p><b>SIGNATURES</b></p>
</center>
<p>Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized. </p>
<div align="right">
  <table cellSpacing="0" border="0" cellpadding="0">
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">KIMBALL INTERNATIONAL, INC.</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">
      <p align="center">By:</td>
      <td width="300">/s/ Robert F. Schneider</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300"><hr align="left" width="70%" SIZE="1"></td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">ROBERT F. SCHNEIDER<br>
      Executive Vice President, <br>
      Chief Financial Officer,<br>
      Treasurer</td>
    </tr>
  </table>
</div>
<p><br>
Date: September 21, 2005</p>
<p align="center">3</p>

</body>

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported)
September
21, 2005  (September 15, 2005)
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in
    its charter)
Indiana
0-3279
35-0514506
(State or other jurisdiction of
(Commission File
(IRS Employer Identification No.)
incorporation)
Number)
1600 Royal Street, Jasper, Indiana
47549-1001
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(812)
482-1600
Not Applicable
(Former name or former address, if changed
    since last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2.
below):
[   ] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
[   ] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[   ] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[   ] Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
1
Item 2.05 Costs Associated with Exit or Disposal Activities
In response to market changes and the need to be more responsive to our
customers and more effective in our operations, on September 15, 2005 Kimball
International approved plans to continue to sharpen its focus within the
Furniture and Cabinets segment. In recent years, Kimball has exited the
unprofitable branded residential furniture market, the wood veneer market and
the wood dimension market, all with the intent of increasing management
attention and focus on growing its primary markets and improving profitability.
As part of the plans, the Company intends to sell a forest products hardwood
lumber business unit and a business unit located in Pennsylvania which produces
and sells fixed-wall furniture systems, and to consolidate administrative,
marketing and business development functions within the segment to better serve
primary markets.
Total pre-tax restructuring expenses related to the above actions are expected
to be approximately $18.8 to $20.8 million, including a loss on the sale of
assets of $11.5 to $13.5 million, software impairment of $3.6 million,
acceleration of software amortization of $2.2 million, employee severance costs
of $1.0 million and fixed asset impairment and other costs of $0.5 million.
Approximately 90% of the cost estimate is expected to be non-cash expense. Both
the hardwood lumber and fixed-wall furniture systems operations had been
operating at a loss, which in total, before corporate allocations, was
approximately $4.0 million pre-tax for the prior fiscal year 2005. Fiscal year
2005 net sales of these two operations totaled approximately $60 million.
As part of the simplification and standardization of business processes, a
portion of the Company's current integrated Enterprise Resource Planning
software will be redesigned. As a result of this, the Company anticipates the
execution of all of the above outlined activities to take approximately three
years, and therefore the amortization of the current software will be
accelerated over this period of time. The Company estimates cost structure
improvement beginning in fiscal year 2007, including the avoidance of the
hardwood lumber and fixed-wall furniture systems operating losses, to be
approximately $7.0 million pre-tax per year. It is anticipated that a portion of
the initial savings will be expended for operating inefficiencies directly
related to the execution of these plans.
The Company continues to evaluate its current manufacturing capabilities and
capacities to determine the optimal alignment with its new organizational
structure and its tightened focus on this segment.
The exit of the hardwood lumber operations and the fixed-wall furniture systems
operations will be classified as Discontinued Operations while the remaining
costs will be classified as Restructuring in the Company's Consolidated
Statements of Income.
Item 2.06 Material Impairments
The information set forth above under Item 2.05 is incorporated by reference
into this Item 2.06.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
KIMBALL INTERNATIONAL, INC.
By:
/s/ Robert F. Schneider
ROBERT F. SCHNEIDER
Executive Vice President,
Chief Financial Officer,
Treasurer
Date: September 21, 2005
3