DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - Jul. 04, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | HNI CORP |
Entity Central Index Key | 48,287 |
Document Type | 10-Q |
Document Period End Date | Jul. 4, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --01-02 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 44,350,077 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 33,438 | $ 34,144 |
Short-term investments | 5,252 | 3,052 |
Receivables | 274,606 | 240,053 |
Inventories | 164,684 | 121,791 |
Deferred income taxes | 16,915 | 17,310 |
Prepaid expenses and other current assets | 28,152 | 39,209 |
Total Current Assets | 523,047 | 455,559 |
PROPERTY, PLANT, AND EQUIPMENT | ||
Land and land improvements | 28,603 | 27,329 |
Buildings | 298,637 | 298,170 |
Machinery and equipment | 511,004 | 492,646 |
Construction in progress | 23,329 | 27,704 |
Property plant and equipment, at cost | 861,573 | 845,849 |
Less accumulated depreciation | 540,851 | 534,841 |
Net Property, Plant, and Equipment | 320,722 | 311,008 |
GOODWILL | 279,374 | 279,310 |
OTHER ASSETS | 201,820 | 193,457 |
Total Assets | 1,324,963 | 1,239,334 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 404,685 | 453,754 |
Note payable and current maturities of long-term debt and capital lease obligations | 304,326 | 160 |
Current maturities of other long-term obligations | 4,225 | 3,419 |
Total Current Liabilities | 713,236 | 457,333 |
LONG-TERM DEBT | 9 | 197,736 |
OTHER LONG-TERM LIABILITIES | 84,054 | 80,353 |
DEFERRED INCOME TAXES | $ 92,529 | $ 89,411 |
COMMITMENTS AND CONTINGENCIES | ||
Capital Stock: | ||
Preferred, $1 par value, authorized 2,000,000 shares, no shares outstanding | $ 0 | $ 0 |
Common, $1 par value, authorized 200,000,000 shares, outstanding - July 4, 2015 - 44,350,077 shares; January 3, 2015 – 44,165,676 shares | 44,350 | 44,166 |
Additional paid-in capital | 11,167 | 867 |
Retained earnings | 383,931 | 374,929 |
Accumulated other comprehensive income | (4,661) | (5,375) |
Total HNI Corporation shareholders' equity | 434,787 | 414,587 |
Noncontrolling interest | 348 | (86) |
Total Equity | 435,135 | 414,501 |
Total Liabilities and Equity | $ 1,324,963 | $ 1,239,334 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 04, 2015 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value (in dollars per share) | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Outstanding | 44,350,077 | 44,165,676 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 568,226 | $ 509,143 | $ 1,091,703 | $ 961,344 |
Cost of sales | 362,102 | 328,010 | 701,079 | 625,039 |
Gross profit | 206,124 | 181,133 | 390,624 | 336,305 |
Selling and administrative expenses | 167,278 | 155,288 | 335,982 | 300,498 |
(Gain) on sale of assets | 0 | (1,346) | 0 | (9,746) |
Restructuring and impairment | (560) | 10,282 | (183) | 10,254 |
Operating income | 39,406 | 16,909 | 54,825 | 35,299 |
Interest income | 119 | 146 | 209 | 216 |
Interest expense | 1,968 | 2,187 | 3,957 | 4,389 |
Income before income taxes | 37,557 | 14,868 | 51,077 | 31,126 |
Income taxes | 13,680 | 5,203 | 18,748 | 10,445 |
Net income | 23,877 | 9,665 | 32,329 | 20,681 |
Less: Net (loss) attributable to the noncontrolling interest | (2) | (40) | (28) | (120) |
Net income attributable to HNI Corporation | $ 23,879 | $ 9,705 | $ 32,357 | $ 20,801 |
Net income attributable to HNI Corporation per common share – basic (in dollars per share) | $ 0.54 | $ 0.22 | $ 0.73 | $ 0.46 |
Average number of common shares outstanding – basic | 44,416,008 | 45,019,783 | 44,359,898 | 45,029,148 |
Net income attributable to HNI Corporation per common share – diluted (in dollars per share) | $ 0.52 | $ 0.21 | $ 0.71 | $ 0.45 |
Average number of common shares outstanding – diluted | 45,620,984 | 45,867,927 | 45,573,952 | 45,843,118 |
Cash dividends per common share (in dollars per share) | $ 0.265 | $ 0.25 | $ 0.515 | $ 0.49 |
Other comprehensive income, net of tax: three months 2015 $185; 2014 $30; six months 2015 $319; 2014 $(18) | $ 396 | $ (49) | $ 715 | $ 398 |
Comprehensive income | 24,273 | 9,616 | 33,044 | 21,079 |
Less: Comprehensive (loss) attributable to noncontrolling interest | (2) | (40) | (28) | (120) |
Comprehensive income attributable to HNI Corporation | $ 24,275 | $ 9,656 | $ 33,072 | $ 21,199 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | ||||
Other comprehensive income, tax | $ 185 | $ 30 | $ 319 | $ (18) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Net Cash Flows From (To) Operating Activities: | ||
Net income | $ 32,329 | $ 20,681 |
Noncash items included in net income: | ||
Depreciation and amortization | 27,795 | 26,952 |
Other postretirement and post employment benefits | 881 | 620 |
Stock-based compensation | 6,262 | 4,752 |
Excess tax benefits from stock compensation | (1,552) | (144) |
Deferred income taxes | 3,437 | 1,550 |
(Gain) loss on sale, retirement and impairment of long-lived assets and intangibles, net | 183 | (581) |
Other – net | 2,012 | 1,255 |
Net increase (decrease) in operating assets and liabilities | (106,618) | (62,432) |
Increase (decrease) in other liabilities | 3,367 | 355 |
Net cash flows from (to) operating activities | (31,904) | (6,992) |
Net Cash Flows From (To) Investing Activities: | ||
Capital expenditures | (33,732) | (34,710) |
Proceeds from sale of property, plant and equipment | 124 | 13,588 |
Capitalized software | (16,150) | (16,412) |
Purchase of investments | (798) | (798) |
Sales or maturities of investments | 1,550 | 4,770 |
Net cash flows from (to) investing activities | (49,006) | (33,562) |
Net Cash Flows From (To) Financing Activities: | ||
Proceeds from sales of HNI Corporation common stock | 10,457 | 3,143 |
Withholdings related to net share settlements of equity based awards | (171) | (79) |
Purchase of HNI Corporation common stock | (15,203) | (13,051) |
Proceeds from note and long-term debt | 347,929 | 100,473 |
Payments of note and long-term debt and other financing | (241,467) | (63,787) |
Excess tax benefits from stock compensation | 1,552 | 144 |
Dividends paid | (22,893) | (22,041) |
Net cash flows from (to) financing activities | 80,204 | 4,802 |
Net increase (decrease) in cash and cash equivalents | (706) | (35,752) |
Cash and cash equivalents at beginning of period | 34,144 | 65,030 |
Cash and cash equivalents at end of period | $ 33,438 | $ 29,278 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The January 3, 2015 consolidated balance sheet included in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the six -month period ended July 4, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2016 . For further information, refer to the consolidated financial statements and accompanying notes included in HNI Corporation's (the "Corporation") Annual Report on Form 10-K for the fiscal year ended January 3, 2015 . Certain reclassifications have been made to the condensed consolidated financial statements of prior periods to conform to the current period presentation. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employee requisite service period. For the three months and six months ended July 4, 2015 and June 28, 2014 , the Corporation recognized $2.8 million and $6.3 million and $2.1 million and $4.8 million , respectively, of stock-based compensation expense for the cost of stock options and time-based restricted stock units issued under the HNI Corporation 2007 Stock-Based Compensation Plan and shares issued under the HNI Corporation 2002 Members' Stock Purchase Plan. At July 4, 2015 , there was $5.3 million of unrecognized compensation cost related to nonvested stock options, which the Corporation expects to recognize over a weighted-average remaining service period of 1.2 years and $1.2 million of unrecognized compensation cost related to nonvested restricted stock units, which the Corporation expects to recognize over a weighted-average remaining service period of 0.7 years. |
Inventories
Inventories | 6 Months Ended |
Jul. 04, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method. (In thousands) July 4, 2015 January 3, 2015 Finished products $ 95,477 $ 65,126 Materials and work in process 97,219 84,677 LIFO allowance (28,012 ) (28,012 ) $ 164,684 $ 121,791 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | 6 Months Ended |
Jul. 04, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended July 4, 2015 : (In thousands) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Pension Postretirement Liability Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance at January 3, 2015 $ 2,223 $ 37 $ (6,763 ) $ (872 ) $ (5,375 ) Other comprehensive income (loss) before reclassifications 145 (2 ) — (266 ) (123 ) Amounts reclassified from accumulated other comprehensive income — — — 837 837 Balance at July 4, 2015 $ 2,368 $ 35 $ (6,763 ) $ (301 ) $ (4,661 ) All amounts are net-of tax. Amounts in parentheses indicate debits . The following table details the reclassifications from accumulated other comprehensive income (loss) for the three and six months ended July 4, 2015 and June 28, 2014 (in thousands): Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income Is Presented July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Derivative financial instruments Diesel hedge Selling and administrative expenses $ (612 ) $ 32 $ (1,307 ) $ 87 Tax (expense) or benefit 229 (12 ) 470 (32 ) Net of tax $ (383 ) $ 20 $ (837 ) $ 55 Amounts in parentheses indicate reductions to profit. During the six months ended July 4, 2015 , the Corporation repurchased 305,000 shares of its common stock at a cost of approximately $15.2 million . As of July 4, 2015 , $204.2 million of the Corporation's Board of Directors' ("Board") current repurchase authorization remained unspent. These share repurchases, offset by shares issued under the member stock purchase plan and stock awards, account for the change in Additional paid-in capital balance for the six months ended July 4, 2015. During the six months ended July 4, 2015 , the Corporation paid dividends to shareholders of $0.515 per share. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 04, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended (In thousands, except per share data) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 23,879 $ 9,705 $ 32,357 $ 20,801 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,416 45,020 44,360 45,029 Potentially dilutive shares from stock-based compensation plans 1,205 848 1,214 813 Denominator for diluted EPS 45,621 45,868 45,574 45,843 Earnings per share – basic $ 0.54 $ 0.22 $ 0.73 $ 0.46 Earnings per share – diluted $ 0.52 $ 0.21 $ 0.71 $ 0.45 The weighted average common stock equivalents presented above do not include the effect of 441,211 and 354,852 common stock equivalents for the three months ended July 4, 2015 and June 28, 2014 and 945,338 and 999,423 common stock equivalents for the six months ended July 4, 2015 and June 28, 2014 because their inclusion would be anti-dilutive. |
Restructuring Reserve And Plant
Restructuring Reserve And Plant Closures | 6 Months Ended |
Jul. 04, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Reserve and Plant Closures | Restructuring Reserve and Plant Closures As a result of the Corporation's ongoing business simplification and cost reduction strategies, the Corporation has closed, consolidated, and realigned a number of its office furniture facilities during the past few years. During the three months ended July 4, 2015 , in connection with the closures, consolidations, and realignments, the Corporation recorded a $0.6 million reduction of restructuring costs due to lower than anticipated postemployment costs. The following is a summary of changes in restructuring accruals during the six months ended July 4, 2015 . (In thousands) Severance Facility Exit Costs & Other Total Balance as of January 3, 2015 $ 1,213 $ — $ 1,213 Restructuring charges (788 ) 605 (183 ) Cash payments (284 ) (589 ) (873 ) Balance as of July 4, 2015 $ 141 $ 16 $ 157 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The table below summarizes amortizable definite-lived intangible assets as of July 4, 2015 and January 3, 2015 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: (In thousands) July 4, 2015 January 3, 2015 Patents $ 18,945 $ 18,945 Less: accumulated amortization 18,747 18,724 Net patents 198 221 Software 107,224 93,343 Less: accumulated amortization 19,379 17,711 Net software 87,845 75,632 Customer lists and other 126,750 125,095 Less: accumulated amortization 63,572 59,743 Net customer lists and other 63,178 65,352 Net definite lived intangible assets $ 151,221 $ 141,205 Aggregate amortization expense for the six months ended July 4, 2015 and June 28, 2014 was $5.5 million and $5.1 million , respectively. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows: (In millions) 2015 2016 2017 2018 2019 Amortization Expense $ 10.8 $ 11.4 $ 15.9 $ 15.8 $ 15.6 As events such as potential acquisitions, dispositions or impairments occur in the future, these amounts may change. The Corporation also owns certain trademarks and trade names with a net carrying amount of $41.0 million as of July 4, 2015 and January 3, 2015 . These trademarks and trade names are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. The changes in the carrying amount of goodwill since January 3, 2015 are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total Balance as of January 3, 2015 Goodwill $ 149,713 $ 181,901 $ 331,614 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of January 3, 2015 97,552 181,758 279,310 Goodwill acquired — 59 59 Foreign currency translation adjustments 5 — 5 Balance as of July 4, 2015 Goodwill 149,718 181,960 331,678 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of July 4, 2015 $ 97,557 $ 181,817 $ 279,374 The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method. This method employs market participant based assumptions. The increase in the hearth segment relates to a purchase price allocation adjustment for an acquisition completed during the fourth quarter of 2014. The purchase price allocation adjustments did not have a significant impact on the Corporation's Condensed Consolidated Balance Sheet as of July 4, 2015 or its Condensed Consolidated Statement of Comprehensive Income for the three months and six months ended July 4, 2015. Therefore, the Corporation has not retrospectively adjusted this financial information. The Corporation will record the final purchase price allocation during the third quarter 2015 upon finalization of deferred taxes associated with the acquisition. |
Product Warranties
Product Warranties | 6 Months Ended |
Jul. 04, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs. A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. Activity associated with warranty obligations was as follows during the periods noted: Six Months Ended (In thousands) July 4, 2015 June 28, 2014 Balance at beginning of period $ 16,719 $ 13,840 Accruals for warranties issued during period 10,535 10,465 Adjustments related to pre-existing warranties 349 (14 ) Settlements made during the period (11,139 ) (9,248 ) Balance at end of period $ 16,464 $ 15,043 The portion of the reserve for estimated settlements expected to be paid in the next twelve months was $8.1 million and $7.7 million as of July 4, 2015 and June 28, 2014 , respectively, and is included in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets. The portion of the reserve for settlements expected to be paid beyond one year was $8.4 million and $7.4 million , as of July 4, 2015 and June 28, 2014 , respectively, and is included in "Other Long-Term Liabilities" in the Condensed Consolidated Balance Sheets. |
Postretirement Health Care
Postretirement Health Care | 6 Months Ended |
Jul. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Health Care | Postretirement Health Care The following table sets forth the components of net periodic benefit cost included in the Corporation's Condensed Consolidated Statements of Comprehensive Income for: Three Months Ended Six Months Ended (In thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ 201 $ 126 $ 402 $ 252 Interest cost 204 184 408 368 Amortization of (gain)/loss 12 — 71 — Net periodic benefit cost $ 417 $ 310 $ 881 $ 620 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 04, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the three months ended July 4, 2015 reflects an effective tax rate of 36.4 percent compared to 35.0 percent for the same period last year. The provision for income taxes for the six months ended July 4, 2015 reflects an effective tax rate of 36.7 percent compared to 33.6 percent for the same period last year. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jul. 04, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Corporation uses derivative financial instruments to reduce its exposure to adverse fluctuations in diesel fuel prices. On the date a derivative is entered into, the Corporation designates the derivative as (i) a fair value hedge, (ii) a cash flow hedge, (iii) a hedge of a net investment in a foreign operation or (iv) a risk management instrument not designated for hedge accounting. The Corporation recognizes all derivatives on its Condensed Consolidated Balance Sheets at fair value. Diesel Fuel Risk Independent freight carriers, used by the Corporation to deliver its products, charge the Corporation a basic rate per mile that is subject to a mileage surcharge for diesel fuel price increases. The Corporation enters into variable to fixed rate commodity swap agreements with two financial counterparties to manage fluctuations in fuel costs. The Corporation hedges approximately 50% of its diesel fuel surcharge exposure for the next twelve months. The Corporation uses the hedge agreements to mitigate the volatility of diesel fuel prices and related fuel surcharges, and not to speculate on the future price of diesel fuel. The hedge agreements are designed to add stability to the Corporation's costs, enabling the Corporation to make pricing decisions and lessen the economic impact of abrupt changes in diesel fuel prices over the term of the contract. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to twelve months. The contracts have been designated as cash flow hedges of future diesel purchases, and as such, the net amount paid or received upon monthly settlements is recorded as an adjustment to freight expense, while the effective change in fair value is recorded as a component of Accumulated other comprehensive income in the equity section of the Corporation's Condensed Consolidated Balance Sheets. As of July 4, 2015 , $0.3 million of deferred net losses, net of tax, included in equity ("Accumulated other comprehensive income" ("AOCI") in the Corporation's Condensed Consolidated Balance Sheets) related to the diesel hedge agreements are expected to be reclassified to current earnings ("Selling and administrative expenses" in the Corporation's Condensed Consolidated Statements of Comprehensive Income) over the next twelve months. The location and fair value of derivative instruments reported in the Corporation's Condensed Consolidated Balance Sheets are as follows (in thousands): Asset (Liability) Fair Value Balance Sheet Location July 4, 2015 January 3, 2015 Diesel fuel swap Accounts payable and accrued expenses $ (484 ) $ (1,374 ) Diesel fuel swap Prepaid expenses and other current assets — — Net balance at end of period $ (484 ) $ (1,374 ) The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended July 4, 2015 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ (57 ) Selling and administrative expenses $ (612 ) Selling and administrative expenses $ — Total $ (57 ) $ (612 ) $ — The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended July 4, 2015 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ (416 ) Selling and administrative expenses $ (1,307 ) Selling and administrative expenses $ — Total $ (416 ) $ (1,307 ) $ — The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 28, 2014 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ 153 Selling and administrative expenses $ 32 Selling and administrative expenses $ (3 ) Total $ 153 $ 32 $ (3 ) The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 28, 2014 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ 55 Selling and administrative expenses $ 87 Selling and administrative expenses $ (4 ) Total $ 55 $ 87 $ (4 ) The Corporation entered into master netting agreements with the two financial counterparties where they entered into commodity swap agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event is allowed. The amounts under the master netting agreement are considered immaterial. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements For recognition purposes, on a recurring basis the Corporation is required to measure at fair value its marketable securities and derivative instruments. The marketable securities are comprised of government securities, corporate bonds and money market funds. When available the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges/indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Assets measured at fair value as of July 4, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,063 $ — $ 9,063 $ — Corporate bonds $ 2,210 $ — $ 2,210 $ — Derivative financial instruments $ (484 ) $ — $ (484 ) $ — Assets measured at fair value as of January 3, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,835 $ — $ 9,835 $ — Corporate bonds $ 2,205 $ — $ 2,205 $ — Derivative financial instruments $ (1,374 ) $ — $ (1,374 ) $ — In addition to the methods and assumptions the Corporation uses to record the fair value of financial instruments as discussed in the section above, it uses the following methods and assumptions to estimate the fair value of its financial instruments. Cash and cash equivalents - Level 1 The carrying amount approximated fair value and includes money market funds. Long-term debt (including current portion) - Level 2 The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at July 4, 2015 and January 3, 2015 , the end of the Corporation's 2014 fiscal year, approximated the fair value. The fair value of the Corporation's outstanding fixed-rate, long-term debt obligations is estimated based on discounted cash flow method to be $151 million at July 4, 2015 and $154 million at January 3, 2015 , compared to the carrying value of $150 million . This debt is classified as current on the Condensed Consolidated Balance Sheet as of July 4, 2015 due to the timing of maturity. The Corporation plans to refinance at which point the debt classification will move back to long-term. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Corporation utilizes letters of credit in the amount of $11 million to back certain insurance policies and payment obligations. The letters of credit reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, and other claims. It is the Corporation's opinion that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation's financial condition, cash flows or on the Corporation's quarterly or annual operating results when resolved in a future period. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | New Accounting Standards In April 2014, the FASB issued accounting guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance is effective for fiscal years beginning on or after December 15, 2014 and interim periods within those annual periods with early adoption allowed. The Corporation adopted the guidance effective January 4, 2015, the beginning of the Corporation's 2015 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment. The aggregated office furniture segment manufactures and markets a broad line of metal and wood office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, classroom solutions, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of manufactured gas, electric, wood and biomass burning fireplaces, inserts and stoves, facings and accessories, principally for the home. For purposes of segment reporting, intercompany sales transfers between segments are not material and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated corporate expenses include the net cost of the Corporation's corporate operations, interest income and interest expense. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments and corporate office real estate and related equipment. No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation's primary market and capital investments are concentrated in the United States. Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three and six month periods ended July 4, 2015 , and June 28, 2014 , is as follows: Three Months Ended Six Months Ended (In thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net Sales: Office Furniture $ 450,624 $ 423,423 $ 858,053 $ 781,792 Hearth Products 117,602 85,720 233,650 179,552 $ 568,226 $ 509,143 $ 1,091,703 $ 961,344 Operating Profit: Office furniture 39,791 18,242 59,943 34,735 Hearth products 11,162 8,481 23,663 20,189 Total operating profit 50,953 26,723 83,606 54,924 Unallocated corporate expense (13,396 ) (11,855 ) (32,529 ) (23,798 ) Income before income taxes $ 37,557 $ 14,868 $ 51,077 $ 31,126 Depreciation & Amortization Expense: Office furniture $ 10,263 $ 12,472 $ 20,640 $ 21,971 Hearth products 2,047 1,158 4,005 2,334 General corporate 1,625 1,298 3,150 2,647 $ 13,935 $ 14,928 $ 27,795 $ 26,952 Capital Expenditures (including capitalized software): Office furniture $ 11,848 $ 16,348 $ 26,399 $ 29,836 Hearth products 1,993 1,187 4,397 2,698 General corporate 7,818 10,894 19,086 18,588 $ 21,659 $ 28,429 $ 49,882 $ 51,122 As of As of (In thousands) July 4, January 3, Identifiable Assets: Office furniture $ 788,899 $ 724,293 Hearth products 359,992 341,315 General corporate 176,072 173,726 $ 1,324,963 $ 1,239,334 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jul. 04, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Stock-based Compensation | The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employee requisite service period. |
Inventory | The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method. |
Goodwill | The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method. This method employs market participant based assumptions. The increase in the hearth segment relates to a purchase price allocation adjustment for an acquisition completed during the fourth quarter of 2014. |
Product Warranty | The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs. A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. |
Derivatives | The Corporation uses derivative financial instruments to reduce its exposure to adverse fluctuations in diesel fuel prices. On the date a derivative is entered into, the Corporation designates the derivative as (i) a fair value hedge, (ii) a cash flow hedge, (iii) a hedge of a net investment in a foreign operation or (iv) a risk management instrument not designated for hedge accounting. The Corporation recognizes all derivatives on its Condensed Consolidated Balance Sheets at fair value. |
Fair Value of Financial Instruments | For recognition purposes, on a recurring basis the Corporation is required to measure at fair value its marketable securities and derivative instruments. The marketable securities are comprised of government securities, corporate bonds and money market funds. When available the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges/indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. |
New Accounting Standards | New Accounting Standards In April 2014, the FASB issued accounting guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance is effective for fiscal years beginning on or after December 15, 2014 and interim periods within those annual periods with early adoption allowed. The Corporation adopted the guidance effective January 4, 2015, the beginning of the Corporation's 2015 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. |
Segment Reporting | Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment. The aggregated office furniture segment manufactures and markets a broad line of metal and wood office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, classroom solutions, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of manufactured gas, electric, wood and biomass burning fireplaces, inserts and stoves, facings and accessories, principally for the home. For purposes of segment reporting, intercompany sales transfers between segments are not material and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated corporate expenses include the net cost of the Corporation's corporate operations, interest income and interest expense. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method. (In thousands) July 4, 2015 January 3, 2015 Finished products $ 95,477 $ 65,126 Materials and work in process 97,219 84,677 LIFO allowance (28,012 ) (28,012 ) $ 164,684 $ 121,791 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income and Changes in Accumulated Other Comprehensive Income, Net of Tax | The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended July 4, 2015 : (In thousands) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Pension Postretirement Liability Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance at January 3, 2015 $ 2,223 $ 37 $ (6,763 ) $ (872 ) $ (5,375 ) Other comprehensive income (loss) before reclassifications 145 (2 ) — (266 ) (123 ) Amounts reclassified from accumulated other comprehensive income — — — 837 837 Balance at July 4, 2015 $ 2,368 $ 35 $ (6,763 ) $ (301 ) $ (4,661 ) All amounts are net-of tax. Amounts in parentheses indicate debits . |
Schedule of Reclassification from Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income (loss) for the three and six months ended July 4, 2015 and June 28, 2014 (in thousands): Three Months Ended Six Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income Is Presented July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Derivative financial instruments Diesel hedge Selling and administrative expenses $ (612 ) $ 32 $ (1,307 ) $ 87 Tax (expense) or benefit 229 (12 ) 470 (32 ) Net of tax $ (383 ) $ 20 $ (837 ) $ 55 Amounts in parentheses indicate reductions to profit. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended (In thousands, except per share data) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 23,879 $ 9,705 $ 32,357 $ 20,801 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,416 45,020 44,360 45,029 Potentially dilutive shares from stock-based compensation plans 1,205 848 1,214 813 Denominator for diluted EPS 45,621 45,868 45,574 45,843 Earnings per share – basic $ 0.54 $ 0.22 $ 0.73 $ 0.46 Earnings per share – diluted $ 0.52 $ 0.21 $ 0.71 $ 0.45 |
Restructuring Reserve and Pla26
Restructuring Reserve and Plant Closures (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Restructuring Accruals | The following is a summary of changes in restructuring accruals during the six months ended July 4, 2015 . (In thousands) Severance Facility Exit Costs & Other Total Balance as of January 3, 2015 $ 1,213 $ — $ 1,213 Restructuring charges (788 ) 605 (183 ) Cash payments (284 ) (589 ) (873 ) Balance as of July 4, 2015 $ 141 $ 16 $ 157 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets by Major Class | The table below summarizes amortizable definite-lived intangible assets as of July 4, 2015 and January 3, 2015 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: (In thousands) July 4, 2015 January 3, 2015 Patents $ 18,945 $ 18,945 Less: accumulated amortization 18,747 18,724 Net patents 198 221 Software 107,224 93,343 Less: accumulated amortization 19,379 17,711 Net software 87,845 75,632 Customer lists and other 126,750 125,095 Less: accumulated amortization 63,572 59,743 Net customer lists and other 63,178 65,352 Net definite lived intangible assets $ 151,221 $ 141,205 |
Schedule of Expected Amortization Expense Table | Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows: (In millions) 2015 2016 2017 2018 2019 Amortization Expense $ 10.8 $ 11.4 $ 15.9 $ 15.8 $ 15.6 |
Schedule of Goodwill | The changes in the carrying amount of goodwill since January 3, 2015 are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total Balance as of January 3, 2015 Goodwill $ 149,713 $ 181,901 $ 331,614 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of January 3, 2015 97,552 181,758 279,310 Goodwill acquired — 59 59 Foreign currency translation adjustments 5 — 5 Balance as of July 4, 2015 Goodwill 149,718 181,960 331,678 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of July 4, 2015 $ 97,557 $ 181,817 $ 279,374 |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Product Warranties Disclosures [Abstract] | |
Activity Associated with Warranty Obligations | Activity associated with warranty obligations was as follows during the periods noted: Six Months Ended (In thousands) July 4, 2015 June 28, 2014 Balance at beginning of period $ 16,719 $ 13,840 Accruals for warranties issued during period 10,535 10,465 Adjustments related to pre-existing warranties 349 (14 ) Settlements made during the period (11,139 ) (9,248 ) Balance at end of period $ 16,464 $ 15,043 |
Postretirement Health Care (Tab
Postretirement Health Care (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The following table sets forth the components of net periodic benefit cost included in the Corporation's Condensed Consolidated Statements of Comprehensive Income for: Three Months Ended Six Months Ended (In thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ 201 $ 126 $ 402 $ 252 Interest cost 204 184 408 368 Amortization of (gain)/loss 12 — 71 — Net periodic benefit cost $ 417 $ 310 $ 881 $ 620 |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Location and Fair Value of Derivative Instruments Reported in Balance Sheets | The location and fair value of derivative instruments reported in the Corporation's Condensed Consolidated Balance Sheets are as follows (in thousands): Asset (Liability) Fair Value Balance Sheet Location July 4, 2015 January 3, 2015 Diesel fuel swap Accounts payable and accrued expenses $ (484 ) $ (1,374 ) Diesel fuel swap Prepaid expenses and other current assets — — Net balance at end of period $ (484 ) $ (1,374 ) |
Effect of Derivative Instruments on Statements of Comprehensive Income | The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended July 4, 2015 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ (57 ) Selling and administrative expenses $ (612 ) Selling and administrative expenses $ — Total $ (57 ) $ (612 ) $ — The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended July 4, 2015 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ (416 ) Selling and administrative expenses $ (1,307 ) Selling and administrative expenses $ — Total $ (416 ) $ (1,307 ) $ — The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 28, 2014 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ 153 Selling and administrative expenses $ 32 Selling and administrative expenses $ (3 ) Total $ 153 $ 32 $ (3 ) The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 28, 2014 was as follows (in thousands): Derivatives in Cash Flow Hedge Relationship Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) Diesel fuel swap $ 55 Selling and administrative expenses $ 87 Selling and administrative expenses $ (4 ) Total $ 55 $ 87 $ (4 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | Assets measured at fair value as of July 4, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,063 $ — $ 9,063 $ — Corporate bonds $ 2,210 $ — $ 2,210 $ — Derivative financial instruments $ (484 ) $ — $ (484 ) $ — Assets measured at fair value as of January 3, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,835 $ — $ 9,835 $ — Corporate bonds $ 2,205 $ — $ 2,205 $ — Derivative financial instruments $ (1,374 ) $ — $ (1,374 ) $ — |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three and six month periods ended July 4, 2015 , and June 28, 2014 , is as follows: Three Months Ended Six Months Ended (In thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net Sales: Office Furniture $ 450,624 $ 423,423 $ 858,053 $ 781,792 Hearth Products 117,602 85,720 233,650 179,552 $ 568,226 $ 509,143 $ 1,091,703 $ 961,344 Operating Profit: Office furniture 39,791 18,242 59,943 34,735 Hearth products 11,162 8,481 23,663 20,189 Total operating profit 50,953 26,723 83,606 54,924 Unallocated corporate expense (13,396 ) (11,855 ) (32,529 ) (23,798 ) Income before income taxes $ 37,557 $ 14,868 $ 51,077 $ 31,126 Depreciation & Amortization Expense: Office furniture $ 10,263 $ 12,472 $ 20,640 $ 21,971 Hearth products 2,047 1,158 4,005 2,334 General corporate 1,625 1,298 3,150 2,647 $ 13,935 $ 14,928 $ 27,795 $ 26,952 Capital Expenditures (including capitalized software): Office furniture $ 11,848 $ 16,348 $ 26,399 $ 29,836 Hearth products 1,993 1,187 4,397 2,698 General corporate 7,818 10,894 19,086 18,588 $ 21,659 $ 28,429 $ 49,882 $ 51,122 As of As of (In thousands) July 4, January 3, Identifiable Assets: Office furniture $ 788,899 $ 724,293 Hearth products 359,992 341,315 General corporate 176,072 173,726 $ 1,324,963 $ 1,239,334 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2.8 | $ 2.1 | $ 6.3 | $ 4.8 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 5.3 | $ 5.3 | ||
Remaining requisite service period for unrecognized compensation cost (in years) | 1 year 2 months 12 days | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 1.2 | $ 1.2 | ||
Remaining requisite service period for unrecognized compensation cost (in years) | 8 months 12 days |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 72.00% | |
Inventory, Net [Abstract] | ||
Finished products | $ 95,477 | $ 65,126 |
Materials and work in process | 97,219 | 84,677 |
LIFO allowance | (28,012) | (28,012) |
Inventories | $ 164,684 | $ 121,791 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Components) (Details) $ in Thousands | 6 Months Ended |
Jul. 04, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at January 3, 2015 | $ (5,375) |
Balance at July 4, 2015 | (4,661) |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at January 3, 2015 | (5,375) |
Other comprehensive income (loss) before reclassifications | (123) |
Amounts reclassified from accumulated other comprehensive income | 837 |
Balance at July 4, 2015 | (4,661) |
Foreign Currency Translation Adjustment [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at January 3, 2015 | 2,223 |
Other comprehensive income (loss) before reclassifications | 145 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Balance at July 4, 2015 | 2,368 |
Unrealized Gains (Losses) on Marketable Securities [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at January 3, 2015 | 37 |
Other comprehensive income (loss) before reclassifications | (2) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Balance at July 4, 2015 | 35 |
Pension Postretirement Liability [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at January 3, 2015 | (6,763) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Balance at July 4, 2015 | (6,763) |
Derivative Financial Instruments [Member] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at January 3, 2015 | (872) |
Other comprehensive income (loss) before reclassifications | (266) |
Amounts reclassified from accumulated other comprehensive income | 837 |
Balance at July 4, 2015 | $ (301) |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Reclassification) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling and administrative expenses | $ (167,278) | $ (155,288) | $ (335,982) | $ (300,498) |
Tax (expense) or benefit | (13,680) | (5,203) | (18,748) | (10,445) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Financial Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling and administrative expenses | (612) | 32 | (1,307) | 87 |
Tax (expense) or benefit | 229 | (12) | 470 | (32) |
Total | $ (383) | $ 20 | $ (837) | $ 55 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Class of Stock [Line Items] | ||||
Cash dividends per common share (in dollars per share) | $ 0.265 | $ 0.25 | $ 0.515 | $ 0.49 |
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchased common stock, shares | 305,000 | |||
Repurchased common stock, value | $ 15.2 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 204.2 | $ 204.2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Numerators: | ||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 23,879 | $ 9,705 | $ 32,357 | $ 20,801 |
Denominators: | ||||
Denominator for basic EPS weighted-average common shares outstanding | 44,416,008 | 45,019,783 | 44,359,898 | 45,029,148 |
Potentially dilutive shares from stock-based compensation plans | 1,205,000 | 848,000 | 1,214,000 | 813,000 |
Denominator for diluted EPS | 45,620,984 | 45,867,927 | 45,573,952 | 45,843,118 |
Earnings per share - basic (in dollars per share) | $ 0.54 | $ 0.22 | $ 0.73 | $ 0.46 |
Earnings per share - diluted (in dollars per share) | $ 0.52 | $ 0.21 | $ 0.71 | $ 0.45 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 441,211 | 354,852 | 945,338 | 999,423 |
Restructuring Reserve And Pla39
Restructuring Reserve And Plant Closures (Narrative) (Details) $ in Millions | 3 Months Ended |
Jul. 04, 2015USD ($) | |
Office Furniture [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Reduction of restructuring costs | $ 0.6 |
Restructuring Reserve and Pla40
Restructuring Reserve and Plant Closures (Changes in Restructuring Accruals) (Details) $ in Thousands | 6 Months Ended |
Jul. 04, 2015USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 3, 2015 | $ 1,213 |
Restructuring charges | (183) |
Cash payments | (873) |
Balance as of July 4, 2015 | 157 |
Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 3, 2015 | 1,213 |
Restructuring charges | (788) |
Cash payments | (284) |
Balance as of July 4, 2015 | 141 |
Facility Exit Costs & Other [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 3, 2015 | 0 |
Restructuring charges | 605 |
Cash payments | (589) |
Balance as of July 4, 2015 | $ 16 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregated amortization expense | $ 5.5 | $ 5.1 | |
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets (excluding goodwill) | $ 41 | $ 41 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, net | $ 151,221 | $ 141,205 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2,015 | 10,800 | |
2,016 | 11,400 | |
2,017 | 15,900 | |
2,018 | 15,800 | |
2,019 | 15,600 | |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 18,945 | 18,945 |
Less: accumulated amortization | 18,747 | 18,724 |
Finite-lived intangible assets, net | 198 | 221 |
Software [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 107,224 | 93,343 |
Less: accumulated amortization | 19,379 | 17,711 |
Finite-lived intangible assets, net | 87,845 | 75,632 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 126,750 | 125,095 |
Less: accumulated amortization | 63,572 | 59,743 |
Finite-lived intangible assets, net | $ 63,178 | $ 65,352 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jul. 04, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | $ 331,614 |
Accumulated impairment losses, beginning balance | (52,304) |
Goodwill, net, beginning balance | 279,310 |
Goodwill acquired | 59 |
Foreign currency translation adjustments | 5 |
Goodwill, gross, ending balance | 331,678 |
Accumulated impairment losses, ending balance | (52,304) |
Goodwill, net, ending balance | 279,374 |
Office Furniture [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 149,713 |
Accumulated impairment losses, beginning balance | (52,161) |
Goodwill, net, beginning balance | 97,552 |
Goodwill acquired | 0 |
Foreign currency translation adjustments | 5 |
Goodwill, gross, ending balance | 149,718 |
Accumulated impairment losses, ending balance | (52,161) |
Goodwill, net, ending balance | 97,557 |
Hearth Products [Member] | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 181,901 |
Accumulated impairment losses, beginning balance | (143) |
Goodwill, net, beginning balance | 181,758 |
Goodwill acquired | 59 |
Foreign currency translation adjustments | 0 |
Goodwill, gross, ending balance | 181,960 |
Accumulated impairment losses, ending balance | (143) |
Goodwill, net, ending balance | $ 181,817 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 16,719 | $ 13,840 |
Accruals for warranties issued during period | 10,535 | 10,465 |
Adjustments related to pre-existing warranties | 349 | (14) |
Settlements made during the period | (11,139) | (9,248) |
Balance at end of period | 16,464 | 15,043 |
Standard product warranty accrual, current | 8,100 | 7,700 |
Standard product warranty accrual, noncurrent | $ 8,400 | $ 7,400 |
Postretirement Health Care (Det
Postretirement Health Care (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 201 | $ 126 | $ 402 | $ 252 |
Interest cost | 204 | 184 | 408 | 368 |
Amortization of (gain)/loss | 12 | 0 | 71 | 0 |
Net periodic benefit cost | $ 417 | $ 310 | $ 881 | $ 620 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 36.40% | 35.00% | 36.70% | 33.60% |
Derivative Financial Instrume47
Derivative Financial Instruments (Narrative) (Details) - Jul. 04, 2015 - Diesel Fuel Swap [Member] $ in Millions | USD ($)counterparty |
Derivatives, Fair Value [Line Items] | |
Number of counterparties | 2 |
Expected hedging percentage of diesel fuel requirements for next twelve months | 50.00% |
Deferred net losses, net of tax expected to be reclassified to current earnings over the next twelve months | $ | $ 0.3 |
Derivative Financial Instrume48
Derivative Financial Instruments (Balance Sheet Location) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Derivative, Fair Value, Net [Abstract] | ||
Derivative asset (liability) fair value | $ (484) | $ (1,374) |
Diesel Fuel Swap [Member] | Accounts Payable and Accrued Expenses [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative asset (liability) fair value | (484) | (1,374) |
Diesel Fuel Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative asset (liability) fair value | $ 0 | $ 0 |
Derivative Financial Instrume49
Derivative Financial Instruments (Effect of Derivatives on Income Statement) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (57) | $ 153 | $ (416) | $ 55 |
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | (612) | 32 | (1,307) | 87 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | (3) | 0 | (4) |
Diesel Fuel Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (57) | 153 | (416) | 55 |
Diesel Fuel Swap [Member] | Selling and Administrative Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | (612) | 32 | (1,307) | 87 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | $ 0 | $ (3) | $ 0 | $ (4) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets) (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | $ (484) | $ (1,374) |
Fair Value, Measurements, Recurring [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | (484) | (1,374) |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | (484) | (1,374) |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 9,063 | 9,835 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 9,063 | 9,835 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 2,210 | 2,205 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 2,210 | 2,205 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | $ 0 | $ 0 |
Fair Value Measurements (Long-t
Fair Value Measurements (Long-term Debt) (Details) - Fixed Rate Debt Instruments [Member] - USD ($) $ in Millions | Jul. 04, 2015 | Jan. 03, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 151 | $ 154 |
Long-term debt | $ 150 | $ 150 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jul. 04, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit used to back insurance policies and other obligations | $ 11 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015USD ($) | Jun. 28, 2014USD ($) | Jul. 04, 2015USD ($)Segment | Jun. 28, 2014USD ($) | Jan. 03, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Net sales | $ 568,226 | $ 509,143 | $ 1,091,703 | $ 961,344 | |
Income before income taxes | 37,557 | 14,868 | 51,077 | 31,126 | |
Depreciation and amortization expense | 13,935 | 14,928 | 27,795 | 26,952 | |
Capital expenditures (including capitalized software) | 21,659 | 28,429 | 49,882 | 51,122 | |
Identifiable assets | 1,324,963 | 1,324,963 | $ 1,239,334 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income before income taxes | 50,953 | 26,723 | 83,606 | 54,924 | |
Operating Segments [Member] | Office Furniture [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 450,624 | 423,423 | 858,053 | 781,792 | |
Income before income taxes | 39,791 | 18,242 | 59,943 | 34,735 | |
Depreciation and amortization expense | 10,263 | 12,472 | 20,640 | 21,971 | |
Capital expenditures (including capitalized software) | 11,848 | 16,348 | 26,399 | 29,836 | |
Identifiable assets | 788,899 | 788,899 | 724,293 | ||
Operating Segments [Member] | Hearth Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 117,602 | 85,720 | 233,650 | 179,552 | |
Income before income taxes | 11,162 | 8,481 | 23,663 | 20,189 | |
Depreciation and amortization expense | 2,047 | 1,158 | 4,005 | 2,334 | |
Capital expenditures (including capitalized software) | 1,993 | 1,187 | 4,397 | 2,698 | |
Identifiable assets | 359,992 | 359,992 | 341,315 | ||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income before income taxes | (13,396) | (11,855) | (32,529) | (23,798) | |
Depreciation and amortization expense | 1,625 | 1,298 | 3,150 | 2,647 | |
Capital expenditures (including capitalized software) | 7,818 | $ 10,894 | 19,086 | $ 18,588 | |
Identifiable assets | $ 176,072 | $ 176,072 | $ 173,726 |