DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended |
Oct. 01, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | HNI CORP |
Entity Central Index Key | 48,287 |
Document Type | 10-Q |
Document Period End Date | Oct. 1, 2016 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 44,536,706 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 27,335 | $ 28,548 |
Short-term investments | 7,400 | 4,252 |
Receivables | 246,989 | 243,409 |
Inventories | 150,690 | 125,228 |
Prepaid expenses and other current assets | 32,615 | 36,933 |
Total Current Assets | 465,029 | 438,370 |
PROPERTY, PLANT, AND EQUIPMENT | ||
Land and land improvements | 30,077 | 28,801 |
Buildings | 306,483 | 298,516 |
Machinery and equipment | 535,968 | 515,131 |
Construction in progress | 40,027 | 31,986 |
Property plant and equipment, at cost | 912,555 | 874,434 |
Less accumulated depreciation | 543,221 | 533,275 |
Net Property, Plant, and Equipment | 369,334 | 341,159 |
GOODWILL | 293,517 | 277,650 |
DEFERRED INCOME TAXES | 1,606 | 0 |
OTHER ASSETS | 231,572 | 206,746 |
Total Assets | 1,361,058 | 1,263,925 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 415,555 | 424,405 |
Current maturities of long-term debt | 21,091 | 5,477 |
Current maturities of other long-term obligations | 4,777 | 6,018 |
Total Current Liabilities | 441,423 | 435,900 |
LONG-TERM DEBT | 215,800 | 185,000 |
OTHER LONG-TERM LIABILITIES | 75,584 | 76,792 |
DEFERRED INCOME TAXES | 103,910 | 88,934 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
Capital Stock: | ||
Preferred, $1 par value, authorized 2,000 shares, no shares outstanding | 0 | 0 |
Common, $1 par value, authorized 200,000,000 shares, outstanding - October 1, 2016 - 44,537 shares; January 2, 2016 – 44,158 shares | 44,537 | 44,158 |
Additional paid-in capital | 14,447 | 4,407 |
Retained earnings | 472,000 | 433,575 |
Accumulated other comprehensive income (loss) | (6,984) | (5,186) |
Total HNI Corporation shareholders' equity | 524,000 | 476,954 |
Noncontrolling interest | 341 | 345 |
Total Equity | 524,341 | 477,299 |
Total Liabilities and Equity | $ 1,361,058 | $ 1,263,925 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Oct. 01, 2016 | Jan. 02, 2016 |
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 | 44,537,000 | 44,158,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 584,629 | $ 615,850 | $ 1,622,204 | $ 1,707,553 |
Cost of sales | 363,075 | 384,219 | 1,006,019 | 1,085,298 |
Gross profit | 221,554 | 231,631 | 616,185 | 622,255 |
Selling and administrative expenses | 169,495 | 170,371 | 496,920 | 506,354 |
Restructuring charges | 399 | 172 | 2,057 | (12) |
Operating income | 51,660 | 61,088 | 117,208 | 115,913 |
Interest income | 80 | 110 | 221 | 318 |
Interest expense | 1,091 | 1,733 | 4,096 | 5,689 |
Income before income taxes | 50,649 | 59,465 | 113,333 | 110,542 |
Income taxes | 16,837 | 18,619 | 38,652 | 37,367 |
Net income | 33,812 | 40,846 | 74,681 | 73,175 |
Less: Net loss attributable to the noncontrolling interest | (1) | (2) | (4) | (30) |
Net income attributable to HNI Corporation | $ 33,813 | $ 40,848 | $ 74,685 | $ 73,205 |
Net income attributable to HNI Corporation per common share – basic (in dollars per share) | $ 0.76 | $ 0.92 | $ 1.68 | $ 1.65 |
Average number of common shares outstanding – basic | 44,547,375 | 44,263,027 | 44,412,310 | 44,327,608 |
Net income attributable to HNI Corporation per common share – diluted (in dollars per share) | $ 0.74 | $ 0.90 | $ 1.64 | $ 1.61 |
Average number of common shares outstanding – diluted | 45,844,566 | 45,402,537 | 45,488,067 | 45,516,521 |
Foreign currency translation adjustments | $ (80) | $ (1,388) | $ (678) | $ (1,241) |
Change in unrealized gains (losses) on marketable securities (net of tax) | (62) | 24 | 11 | 22 |
Change in derivative financial instruments (net of tax) | 422 | (273) | (1,131) | 297 |
Other comprehensive gain (loss) net of tax | 280 | (1,637) | (1,798) | (922) |
Comprehensive income | 34,092 | 39,209 | 72,883 | 72,253 |
Less: Comprehensive (loss) attributable to noncontrolling interest | (1) | (2) | (4) | (30) |
Comprehensive income attributable to HNI Corporation | $ 34,093 | $ 39,211 | $ 72,887 | $ 72,283 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Non- controlling Interest |
Beginning balance at Jan. 03, 2015 | $ 414,501 | $ 44,166 | $ 867 | $ 374,929 | $ (5,375) | $ (86) |
Comprehensive income: | ||||||
Net income (loss) | 73,175 | 73,205 | (30) | |||
Other comprehensive (loss) (net of tax) | (922) | (922) | ||||
Change in ownership of noncontrolling interest | (461) | 461 | ||||
Cash dividends | (34,629) | (34,629) | ||||
Common shares – treasury: | ||||||
Shares purchased | (24,779) | (506) | (24,273) | |||
Shares issued under Members’ Stock Purchase Plan and stock awards | 28,463 | 521 | 27,942 | |||
Ending balance at Oct. 03, 2015 | 455,809 | 44,181 | 4,536 | 413,044 | (6,297) | 345 |
Beginning balance at Jan. 02, 2016 | 477,299 | 44,158 | 4,407 | 433,575 | (5,186) | 345 |
Comprehensive income: | ||||||
Net income (loss) | 74,681 | 74,685 | (4) | |||
Other comprehensive (loss) (net of tax) | (1,798) | (1,798) | ||||
Cash dividends | (36,260) | (36,260) | ||||
Common shares – treasury: | ||||||
Shares purchased | (30,406) | (608) | (29,798) | |||
Shares issued under Members’ Stock Purchase Plan and stock awards | 40,825 | 987 | 39,838 | |||
Ending balance at Oct. 01, 2016 | $ 524,341 | $ 44,537 | $ 14,447 | $ 472,000 | $ (6,984) | $ 341 |
CONSOLIDATED STATEMENTS OF EQU6
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.815 | $ 0.780 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Net Cash Flows From (To) Operating Activities: | ||
Net income | $ 74,681 | $ 73,175 |
Non-cash items included in net income: | ||
Depreciation and amortization | 48,908 | 42,299 |
Other post retirement and post employment benefits | 1,232 | 1,392 |
Stock-based compensation | 7,400 | 7,953 |
Excess tax benefits from stock compensation | (1,797) | (1,581) |
Deferred income taxes | 14,371 | 8,411 |
(Gain) loss on sale, retirement and impairment of long-lived assets and intangibles, net | 841 | 349 |
Other – net | 980 | (1,199) |
Net increase (decrease) in operating assets and liabilities | (26,582) | (74,897) |
Increase (decrease) in other liabilities | (6,327) | 2,500 |
Net cash flows from (to) operating activities | 113,707 | 58,402 |
Net Cash Flows From (To) Investing Activities: | ||
Capital expenditures | (62,796) | (58,029) |
Proceeds from sale of property, plant and equipment | 987 | 783 |
Capitalized software | (19,703) | (23,544) |
Acquisition spending, net of cash acquired | (33,567) | 0 |
Purchase of investments | (8,724) | (2,861) |
Sales or maturities of investments | 8,581 | 2,750 |
Other – net | 500 | 0 |
Net cash flows from (to) investing activities | (114,722) | (80,901) |
Net Cash Flows From (To) Financing Activities: | ||
Proceeds from sales of HNI Corporation common stock | 20,871 | 11,548 |
Withholdings related to net share settlements of equity based awards | 0 | 171 |
Purchase of HNI Corporation common stock | (30,406) | (24,779) |
Proceeds from note and long-term debt | 543,286 | 400,979 |
Payments of note and long-term debt and other financing | (499,486) | (341,558) |
Excess tax benefits from stock compensation | 1,797 | 1,581 |
Dividends paid | (36,260) | (34,629) |
Net cash flows from (to) financing activities | (198) | 12,971 |
Net increase (decrease) in cash and cash equivalents | (1,213) | (9,528) |
Cash and cash equivalents at beginning of period | 28,548 | 34,144 |
Cash and cash equivalents at end of period | $ 27,335 | $ 24,616 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 01, 2016 | |
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 2, 2016 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 nine -month period ended October 1, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 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 2, 2016 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 01, 2016 | |
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 employees' requisite service periods. For the three months and nine months ended October 1, 2016 , the Corporation recognized $1.0 million and $7.4 million , respectively, of stock based compensation expense. For the three months and nine months ended October 3, 2015 , the Corporation recognized $1.7 million and $8.0 million , respectively, of stock based compensation expense. Stock-based compensation expense is 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. The Corporation granted stock options with fair values of $7.7 million and $6.5 million and time-based restricted stock units with adjusted fair values of $0.7 million and $1.1 million in the nine months ended October 1, 2016 and October 3, 2015 , respectively. At October 1, 2016 , there was $3.9 million of unrecognized compensation cost related to non-vested stock options, which the Corporation expects to recognize over a weighted-average remaining service period of 1.3 years, and $1.1 million of unrecognized compensation costs related to non-vested restricted stock units, which the Corporation expects to recognize over a weighted-average remaining service period of 1.0 years. |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Corporation values its inventory at the lower of cost or market with approximately 75 percent valued by the last-in, first-out ("LIFO") costing method. (In thousands) October 1, 2016 January 2, 2016 Finished products $ 94,344 $ 68,478 Materials and work in process 81,456 81,860 LIFO allowance (25,110 ) (25,110 ) $ 150,690 $ 125,228 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | 9 Months Ended |
Oct. 01, 2016 | |
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 nine months ended October 1, 2016 : (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 2, 2016 $ 322 $ (2 ) $ (5,506 ) $ — $ (5,186 ) Other comprehensive income (loss) before reclassifications (678 ) 17 — (2,506 ) (3,167 ) Tax (expense) or benefit — (6 ) — 922 916 Amounts reclassified from accumulated other comprehensive (income) loss, net of tax — — — 453 453 Balance at October 1, 2016 $ (356 ) $ 9 $ (5,506 ) $ (1,131 ) $ (6,984 ) Amounts in parentheses indicate reductions in equity . The following table summarizes the components of accumulated other comprehensive income(loss) and the changes in accumulated other comprehensive income (loss) for the nine months ended October 3, 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 (1,241 ) 33 — (1,533 ) (2,741 ) Tax (expense) or benefit — (11 ) — 528 517 Amounts reclassified from accumulated other comprehensive (income) loss net of tax — — — 1,302 1,302 Balance at October 3, 2015 $ 982 $ 59 $ (6,763 ) $ (575 ) $ (6,297 ) Amounts in parentheses indicate reductions in equity. In March 2016, the Corporation entered into an interest rate swap transaction to hedge $150 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of the interest rate swap the Corporation pays a fixed rate of 1.29 percent and receives one month LIBOR on a $150 million notional value expiring January 2021. As of October 1, 2016 , the fair value of the Corporation's interest rate swap was a liability of $1.8 million , reported net of tax as $1.1 million in "Accumulated other comprehensive income (loss)" in the Condensed Consolidated Balance Sheets. The following table details the reclassifications from accumulated other comprehensive income (loss) for the three months and nine months ended October 1, 2016 and October 3, 2015 (in thousands): Three Months Ended Nine Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income Is Presented October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Derivative financial instruments Interest rate swap Selling and administrative expenses $ (302 ) $ — $ (717 ) $ — Tax (expense) or benefit 111 — 264 — Net of tax $ (191 ) $ — $ (453 ) $ — Diesel hedge Selling and administrative expenses $ — $ (680 ) $ — $ (1,987 ) Tax (expense) or benefit — 255 — 685 Net of tax $ — $ (425 ) $ — $ (1,302 ) Net $ (191 ) $ (425 ) $ (453 ) $ (1,302 ) Amounts in parentheses indicate reductions to profit. During the nine months ended October 1, 2016 , the Corporation repurchased 608,500 shares of its common stock at a cost of approximately $30.4 million . As of October 1, 2016 , $162.3 million of the Corporation's Board of Directors' ("Board") current repurchase authorization remained unspent. During the three months ended October 1, 2016 and October 3, 2015 , the Corporation paid dividends to shareholders of $0.275 and $0.265 per share, respectively. During the nine months ended October 1, 2016 and October 3, 2015 , the Corporation paid dividends to shareholders of $0.815 and $0.780 per share, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 01, 2016 | |
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 Nine Months Ended (In thousands, except per share data) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 33,813 $ 40,848 $ 74,685 $ 73,205 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,547 44,263 44,412 44,328 Potentially dilutive shares from stock-based compensation plans 1,298 1,140 1,076 1,189 Denominator for diluted EPS 45,845 45,403 45,488 45,517 Earnings per share – basic $ 0.76 $ 0.92 $ 1.68 $ 1.65 Earnings per share – diluted $ 0.74 $ 0.90 $ 1.64 $ 1.61 The weighted average common stock equivalents presented above do not include the effect of 352,380 and 536,814 common stock equivalents for the three months ended October 1, 2016 and October 3, 2015 , respectively, and 437,684 and 383,600 common stock equivalents for the nine months ended October 1, 2016 and October 3, 2015 , respectively, because their inclusion would be anti-dilutive. |
Restructuring
Restructuring | 9 Months Ended |
Oct. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring costs during the three months ended October 1, 2016 were $1.1 million , of which $0.7 million was recorded in "Cost of goods sold" in the Condensed Consolidated Statements of Comprehensive Income. Restructuring costs during the nine months ended October 1, 2016 were $4.2 million , of which $2.2 million was recorded in cost of goods sold. These costs in both the quarter and year to date periods were primarily incurred as part of the previously announced closure of the Paris, Kentucky hearth manufacturing facility. During the three months ended October 3, 2015 , the Corporation recorded $1.0 million of restructuring costs, of which $0.8 million was recorded in cost of goods sold, due primarily to the decision to exit a line of business within our hearth product segment. During the nine months ended October 3, 2015 , the Corporation recorded $0.8 million of restructuring costs, all of which was recorded in cost of goods sold. The costs resulting from the decision to exit a line of business within our hearth product segment were partially offset by lower than anticipated post employment costs related to previously announced closures of the Midwest Folding Products business located in Chicago, Illinois and an office furniture manufacturing facility in Florence, Alabama. The following is a summary of changes in restructuring accruals during the nine months ended October 1, 2016 . (In thousands) Severance Facility Exit Costs & Other Total Balance as of January 2, 2016 $ 206 $ 15 $ 221 Restructuring charges, excluding amounts in cost of goods sold 1,249 808 2,057 Cash payments (685 ) (823 ) (1,508 ) Balance as of October 1, 2016 $ 770 $ — $ 770 The restructuring reserve is expected to be paid in the next twelve months and is included in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 01, 2016 | |
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 October 1, 2016 and January 2, 2016 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: October 1, 2016 January 2, 2016 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 18,645 $ 18,621 $ 24 $ 18,645 $ 18,615 $ 30 Software 143,451 24,446 119,005 122,892 21,193 101,699 Trademarks and trade names 7,564 1,236 6,328 6,564 753 5,811 Customer lists and other 117,785 63,460 54,325 105,586 60,063 45,523 Net definite lived intangible assets $ 287,445 $ 107,763 $ 179,682 $ 253,687 $ 100,624 $ 153,063 Aggregate amortization expense for the three months ended October 1, 2016 and October 3, 2015 was $3.2 million and $2.7 million , respectively. Aggregate amortization expense for the nine months ended October 1, 2016 and October 3, 2015 was $8.6 million and $8.2 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) 2016 2017 2018 2019 2020 Amortization expense $ 12.0 $ 20.8 $ 22.3 $ 21.3 $ 20.8 As events such as 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 October 1, 2016 and January 2, 2016 . These trademarks and trade names, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets, 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 2, 2016 are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total Balance as of January 2, 2016 Goodwill $ 149,718 $ 183,199 $ 332,917 Accumulated impairment losses (55,124 ) (143 ) (55,267 ) Net goodwill balance as of January 2, 2016 94,594 183,056 277,650 Goodwill acquired 15,871 — 15,871 Foreign currency translation adjustments (4 ) — (4 ) Balance as of October 1, 2016 Goodwill 165,585 183,199 348,784 Accumulated impairment losses (55,124 ) (143 ) (55,267 ) Net goodwill balance as of October 1, 2016 $ 110,461 $ 183,056 $ 293,517 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. |
Product Warranties
Product Warranties | 9 Months Ended |
Oct. 01, 2016 | |
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: (In thousands) October 1, 2016 October 3, 2015 Balance at beginning of period $ 16,227 $ 16,719 Accruals for warranties issued during period 14,762 14,764 Adjustments related to pre-existing warranties 359 (230 ) Settlements made during the period (15,379 ) (15,372 ) Balance at end of period $ 15,969 $ 15,881 The portion of the reserve for estimated settlements expected to be paid in the next twelve months was $7.7 million and $8.2 million as of October 1, 2016 and January 2, 2016 , 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 $8.3 million and $8.0 million as of October 1, 2016 and January 2, 2016 , respectively, and is included in "Other Long-Term Liabilities" in the Condensed Consolidated Balance Sheets. |
Post-Retirement Health Care
Post-Retirement Health Care | 9 Months Ended |
Oct. 01, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Post-Retirement Health Care | Post-Retirement Health Care The following table sets forth the components of net periodic benefit costs included in the Corporation's Condensed Consolidated Statements of Comprehensive Income for the periods noted: Three Months Ended Nine Months Ended (In thousands) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 184 $ 201 $ 552 $ 603 Interest cost 212 204 634 612 Amortization of (gain)/loss 16 59 46 177 Net periodic benefit cost $ 412 $ 464 $ 1,232 $ 1,392 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Corporation's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Corporation's income tax provision for the three months ended October 1, 2016 was $16.8 million on pre-tax income of $50.6 million or an effective tax rate of 33.2 percent . For the three months ended October 3, 2015 , the Corporation's income tax provision was $18.6 million on pre-tax income of $59.5 million or an effective tax rate of 31.3 percent . The effective tax rate was higher in the three months ended October 1, 2016 principally due to bonus depreciation not being enacted as of October 3, 2015 , which caused a higher expected U.S. manufacturing deduction and, indirectly, a lower effective tax rate for October 3, 2015 as compared to the current quarter. The provision for income taxes for the nine months ended October 1, 2016 reflects an effective tax rate of 34.1 percent compared to 33.8 percent for the same period last year. The drivers of the change in effective tax rate for the first nine months were the same as those for the quarter. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 01, 2016 | |
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 and 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 October 1, 2016 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 $ 6,368 $ — $ 6,368 $ — Corporate bonds $ 6,140 $ — $ 6,140 $ — Derivative financial instruments $ (1,790 ) $ — $ (1,790 ) $ — Assets measured at fair value as of January 2, 2016 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 $ 9,663 $ — $ 9,663 $ — Corporate bonds $ 2,405 $ — $ 2,405 $ — Derivative financial instruments $ (1,252 ) $ — $ (1,252 ) $ — In addition to the methods and assumptions the Corporation uses to record the fair value of financial instruments as discussed above in this section, 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 debt obligations at October 1, 2016 and January 2, 2016 , the end of the Corporation's 2015 fiscal year, was $237 million and $40 million , respectively, which approximated the fair value. The Corporation paid off its outstanding fixed-rate, long-term debt obligations on April 6, 2016 with revolving credit facility borrowings. The value of these senior notes was estimated based on a discounted cash flow method to be $148 million at January 2, 2016 , compared to the carrying value of $150 million . The Corporation, certain domestic subsidiaries of the Corporation, the lenders and Wells Fargo Bank, National Association, as administrative agent, entered into the First Amendment to Second Amended and Restated Credit Agreement (the "Credit Agreement") on January 6, 2016. The Credit Agreement amends the Second Amended and Restated Credit Agreement dated as of June 9, 2015. The Credit Agreement was amended to increase the revolving commitment of the lenders from $250 million to $400 million (while retaining the Corporation's option under the Credit Agreement to increase its borrowing capacity by an additional $150 million ) in order to provide funding for the payoff of its maturing senior notes on April 6, 2016 and to extend the maturity date of the Credit Agreement from June 2020 to January 2021. The Corporation deferred the debt issuance costs related to the Credit Agreement, which were classified as assets, and is amortizing them over the term of the Credit Agreement. As of October 1, 2016 , there was $237 million outstanding under the $400 million revolving credit facility of which $216 million was classified as long-term since the Corporation does not expect to repay the borrowings within a year and the remaining $21 million was classified as current. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of $14 million to back certain insurance policies and payment obligations. The Corporation utilizes trade letters of credit and banker's acceptances in the amount of $5 million to guarantee certain payments to overseas suppliers. The letters of credit, bonds and banker's acceptances 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. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 9 Months Ended |
Oct. 01, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2015-05, Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . The ASU applies to cloud computing arrangements including software as a service, platform as a service, infrastructure as a service and other similar hosting arrangements and was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The ASU provides guidance about whether the arrangement includes a software license. The core principle of the ASU is that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance did not change U.S. generally accepted accounting principles for a customer’s accounting for service contracts. The Corporation adopted the guidance effective January 3, 2016, the beginning of the Corporation's 2016 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. The FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying Presentation of Debt Issuance Costs in April 2015, which was further clarified by ASU No. 2015-15 in August 2015. The core principle of the ASUs is that an entity should present debt issuance costs as a direct deduction from the face amount of that debt in the balance sheet similar to the manner in which a debt discount or premium is presented, and not reflected as a deferred charge or deferred credit. The ASU requires additional disclosure about the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line item (that is, the debt issuance cost asset and the debt liability). Debt issuance costs related to line-of-credit arrangements can still be presented as assets and subsequently amortized. The Corporation adopted the guidance effective January 3, 2016, the beginning of the Corporation's 2016 fiscal year. The guidance did not have an impact on the Corporation's financial statements because all debt currently held is a line-of-credit arrangement. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Oct. 01, 2016 | |
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 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 pellet fireplaces, inserts and stoves, facings and accessories. For purposes of segment reporting, inter-company sales 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 months and nine months ended October 1, 2016 and October 3, 2015 , is as follows: Three Months Ended Nine Months Ended (In thousands) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net Sales: Office Furniture $ 454,946 $ 475,960 $ 1,270,398 $ 1,334,013 Hearth Products 129,683 139,890 351,806 373,540 $ 584,629 $ 615,850 $ 1,622,204 $ 1,707,553 Operating Profit: Office furniture $ 44,729 $ 48,389 $ 109,396 $ 108,332 Hearth products 19,108 23,498 41,623 47,161 Total operating profit 63,837 71,887 151,019 155,493 Unallocated corporate expense (13,188 ) (12,422 ) (37,686 ) (44,951 ) Income before income taxes $ 50,649 $ 59,465 $ 113,333 $ 110,542 Depreciation & Amortization Expense: Office furniture $ 10,889 $ 10,644 $ 32,709 $ 31,284 Hearth products 3,034 2,166 9,012 6,171 General corporate 3,354 1,694 7,187 4,844 $ 17,277 $ 14,504 $ 48,908 $ 42,299 Capital Expenditures (including capitalized software): Office furniture $ 13,875 $ 19,590 $ 43,923 $ 45,989 Hearth products 1,957 2,798 8,969 7,195 General corporate 10,811 9,303 29,607 28,389 $ 26,643 $ 31,691 $ 82,499 $ 81,573 As of As of (In thousands) October 1, January 2, Identifiable Assets: Office furniture $ 797,458 $ 739,915 Hearth products 360,081 341,813 General corporate 203,519 182,197 $ 1,361,058 $ 1,263,925 |
Business Combinations
Business Combinations | 9 Months Ended |
Oct. 01, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On January 29, 2016, the Corporation acquired a small office furniture company with annual sales of approximately $30 million at a purchase price of approximately $34 million , net of cash acquired. The Corporation will finalize the allocation of purchase price during the fourth quarter 2016 based on final purchase price and fair value adjustments. Based on the preliminary allocation, there are approximately $15 million of intangible assets other than goodwill associated with this acquisition with estimated useful lives ranging from three to ten years with amortization recorded on a straight line basis based on the projected cash flow associated with the respective intangible assets. There was approximately $14 million of goodwill associated with this acquisition. As part of the Corporation's ongoing business strategy, it continues to acquire and divest small office furniture dealerships. Goodwill increased approximately $2 million in the first nine months of 2016 as a result of this activity. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Oct. 01, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 7, 2016 the Corporation approved the closure of its Orleans, Indiana office furniture manufacturing facility as part of its continued efficiency and simplification activities to deliver consistent, flawless execution to customers and to reduce structural costs. The Corporation will consolidate the Orleans production into existing domestic office furniture manufacturing facilities and anticipates the closure and consolidation to be substantially completed by the end of 2017. The Corporation estimates the consolidation will drive annual cash savings of $6.9 million beginning in 2018. The Corporation estimates it will incur pre-tax charges of $21.1 million related to the closure and consolidations consisting of costs for workforce reductions, facility exit, manufacturing consolidation and production move costs. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 01, 2016 | |
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 employees' requisite service periods. |
Inventories | The Corporation values its inventory at the lower of cost or market with approximately 75 percent valued by the last-in, first-out ("LIFO") costing method. |
Goodwill and Other Intangible Assets | 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. |
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. |
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 and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. |
Recently Adopted Accounting Standards | In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2015-05, Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . The ASU applies to cloud computing arrangements including software as a service, platform as a service, infrastructure as a service and other similar hosting arrangements and was issued to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The ASU provides guidance about whether the arrangement includes a software license. The core principle of the ASU is that if a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance did not change U.S. generally accepted accounting principles for a customer’s accounting for service contracts. The Corporation adopted the guidance effective January 3, 2016, the beginning of the Corporation's 2016 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. The FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying Presentation of Debt Issuance Costs in April 2015, which was further clarified by ASU No. 2015-15 in August 2015. The core principle of the ASUs is that an entity should present debt issuance costs as a direct deduction from the face amount of that debt in the balance sheet similar to the manner in which a debt discount or premium is presented, and not reflected as a deferred charge or deferred credit. The ASU requires additional disclosure about the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line item (that is, the debt issuance cost asset and the debt liability). Debt issuance costs related to line-of-credit arrangements can still be presented as assets and subsequently amortized. The Corporation adopted the guidance effective January 3, 2016, the beginning of the Corporation's 2016 fiscal year. The guidance did not have an impact on the Corporation's financial statements because all debt currently held is a line-of-credit arrangement. |
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 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 pellet fireplaces, inserts and stoves, facings and accessories. For purposes of segment reporting, inter-company sales 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. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Corporation values its inventory at the lower of cost or market with approximately 75 percent valued by the last-in, first-out ("LIFO") costing method. (In thousands) October 1, 2016 January 2, 2016 Finished products $ 94,344 $ 68,478 Materials and work in process 81,456 81,860 LIFO allowance (25,110 ) (25,110 ) $ 150,690 $ 125,228 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
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 nine months ended October 1, 2016 : (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 2, 2016 $ 322 $ (2 ) $ (5,506 ) $ — $ (5,186 ) Other comprehensive income (loss) before reclassifications (678 ) 17 — (2,506 ) (3,167 ) Tax (expense) or benefit — (6 ) — 922 916 Amounts reclassified from accumulated other comprehensive (income) loss, net of tax — — — 453 453 Balance at October 1, 2016 $ (356 ) $ 9 $ (5,506 ) $ (1,131 ) $ (6,984 ) Amounts in parentheses indicate reductions in equity . The following table summarizes the components of accumulated other comprehensive income(loss) and the changes in accumulated other comprehensive income (loss) for the nine months ended October 3, 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 (1,241 ) 33 — (1,533 ) (2,741 ) Tax (expense) or benefit — (11 ) — 528 517 Amounts reclassified from accumulated other comprehensive (income) loss net of tax — — — 1,302 1,302 Balance at October 3, 2015 $ 982 $ 59 $ (6,763 ) $ (575 ) $ (6,297 ) Amounts in parentheses indicate reductions in equity. |
Schedule of Reclassification from Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income (loss) for the three months and nine months ended October 1, 2016 and October 3, 2015 (in thousands): Three Months Ended Nine Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income Is Presented October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Derivative financial instruments Interest rate swap Selling and administrative expenses $ (302 ) $ — $ (717 ) $ — Tax (expense) or benefit 111 — 264 — Net of tax $ (191 ) $ — $ (453 ) $ — Diesel hedge Selling and administrative expenses $ — $ (680 ) $ — $ (1,987 ) Tax (expense) or benefit — 255 — 685 Net of tax $ — $ (425 ) $ — $ (1,302 ) Net $ (191 ) $ (425 ) $ (453 ) $ (1,302 ) Amounts in parentheses indicate reductions to profit. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
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 Nine Months Ended (In thousands, except per share data) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 33,813 $ 40,848 $ 74,685 $ 73,205 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,547 44,263 44,412 44,328 Potentially dilutive shares from stock-based compensation plans 1,298 1,140 1,076 1,189 Denominator for diluted EPS 45,845 45,403 45,488 45,517 Earnings per share – basic $ 0.76 $ 0.92 $ 1.68 $ 1.65 Earnings per share – diluted $ 0.74 $ 0.90 $ 1.64 $ 1.61 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Restructuring Accruals | The following is a summary of changes in restructuring accruals during the nine months ended October 1, 2016 . (In thousands) Severance Facility Exit Costs & Other Total Balance as of January 2, 2016 $ 206 $ 15 $ 221 Restructuring charges, excluding amounts in cost of goods sold 1,249 808 2,057 Cash payments (685 ) (823 ) (1,508 ) Balance as of October 1, 2016 $ 770 $ — $ 770 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
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 October 1, 2016 and January 2, 2016 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: October 1, 2016 January 2, 2016 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 18,645 $ 18,621 $ 24 $ 18,645 $ 18,615 $ 30 Software 143,451 24,446 119,005 122,892 21,193 101,699 Trademarks and trade names 7,564 1,236 6,328 6,564 753 5,811 Customer lists and other 117,785 63,460 54,325 105,586 60,063 45,523 Net definite lived intangible assets $ 287,445 $ 107,763 $ 179,682 $ 253,687 $ 100,624 $ 153,063 |
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) 2016 2017 2018 2019 2020 Amortization expense $ 12.0 $ 20.8 $ 22.3 $ 21.3 $ 20.8 |
Schedule of Goodwill | The changes in the carrying amount of goodwill since January 2, 2016 are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total Balance as of January 2, 2016 Goodwill $ 149,718 $ 183,199 $ 332,917 Accumulated impairment losses (55,124 ) (143 ) (55,267 ) Net goodwill balance as of January 2, 2016 94,594 183,056 277,650 Goodwill acquired 15,871 — 15,871 Foreign currency translation adjustments (4 ) — (4 ) Balance as of October 1, 2016 Goodwill 165,585 183,199 348,784 Accumulated impairment losses (55,124 ) (143 ) (55,267 ) Net goodwill balance as of October 1, 2016 $ 110,461 $ 183,056 $ 293,517 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Product Warranties Disclosures [Abstract] | |
Activity Associated with Warranty Obligations | Activity associated with warranty obligations was as follows during the periods noted: (In thousands) October 1, 2016 October 3, 2015 Balance at beginning of period $ 16,227 $ 16,719 Accruals for warranties issued during period 14,762 14,764 Adjustments related to pre-existing warranties 359 (230 ) Settlements made during the period (15,379 ) (15,372 ) Balance at end of period $ 15,969 $ 15,881 |
Post-Retirement Health Care (Ta
Post-Retirement Health Care (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The following table sets forth the components of net periodic benefit costs included in the Corporation's Condensed Consolidated Statements of Comprehensive Income for the periods noted: Three Months Ended Nine Months Ended (In thousands) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 184 $ 201 $ 552 $ 603 Interest cost 212 204 634 612 Amortization of (gain)/loss 16 59 46 177 Net periodic benefit cost $ 412 $ 464 $ 1,232 $ 1,392 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | Assets measured at fair value as of October 1, 2016 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 $ 6,368 $ — $ 6,368 $ — Corporate bonds $ 6,140 $ — $ 6,140 $ — Derivative financial instruments $ (1,790 ) $ — $ (1,790 ) $ — Assets measured at fair value as of January 2, 2016 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 $ 9,663 $ — $ 9,663 $ — Corporate bonds $ 2,405 $ — $ 2,405 $ — Derivative financial instruments $ (1,252 ) $ — $ (1,252 ) $ — |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Data | Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three months and nine months ended October 1, 2016 and October 3, 2015 , is as follows: Three Months Ended Nine Months Ended (In thousands) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net Sales: Office Furniture $ 454,946 $ 475,960 $ 1,270,398 $ 1,334,013 Hearth Products 129,683 139,890 351,806 373,540 $ 584,629 $ 615,850 $ 1,622,204 $ 1,707,553 Operating Profit: Office furniture $ 44,729 $ 48,389 $ 109,396 $ 108,332 Hearth products 19,108 23,498 41,623 47,161 Total operating profit 63,837 71,887 151,019 155,493 Unallocated corporate expense (13,188 ) (12,422 ) (37,686 ) (44,951 ) Income before income taxes $ 50,649 $ 59,465 $ 113,333 $ 110,542 Depreciation & Amortization Expense: Office furniture $ 10,889 $ 10,644 $ 32,709 $ 31,284 Hearth products 3,034 2,166 9,012 6,171 General corporate 3,354 1,694 7,187 4,844 $ 17,277 $ 14,504 $ 48,908 $ 42,299 Capital Expenditures (including capitalized software): Office furniture $ 13,875 $ 19,590 $ 43,923 $ 45,989 Hearth products 1,957 2,798 8,969 7,195 General corporate 10,811 9,303 29,607 28,389 $ 26,643 $ 31,691 $ 82,499 $ 81,573 As of As of (In thousands) October 1, January 2, Identifiable Assets: Office furniture $ 797,458 $ 739,915 Hearth products 360,081 341,813 General corporate 203,519 182,197 $ 1,361,058 $ 1,263,925 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1 | $ 1.7 | $ 7.4 | $ 8 |
Fair value of granted stock options | 7.7 | 6.5 | ||
Adjusted fair value of granted restricted stock units | 0.7 | $ 1.1 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | 3.9 | $ 3.9 | ||
Remaining requisite service period for unrecognized compensation cost (in years) | 1 year 3 months 18 days | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 1.1 | $ 1.1 | ||
Remaining requisite service period for unrecognized compensation cost (in years) | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 75.00% | |
Inventories | ||
Finished products | $ 94,344 | $ 68,478 |
Materials and work in process | 81,456 | 81,860 |
LIFO allowance | (25,110) | (25,110) |
Inventories | $ 150,690 | $ 125,228 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Components) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 476,954 | |
Other comprehensive income (loss) before reclassifications | (3,167) | $ (2,741) |
Tax (expense) or benefit | 916 | 517 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 453 | 1,302 |
Ending balance | 524,000 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (5,186) | (5,375) |
Ending balance | (6,984) | (6,297) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 322 | 2,223 |
Other comprehensive income (loss) before reclassifications | (678) | (1,241) |
Tax (expense) or benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 0 | 0 |
Ending balance | (356) | 982 |
Unrealized Gains (Losses) on Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (2) | 37 |
Other comprehensive income (loss) before reclassifications | 17 | 33 |
Tax (expense) or benefit | (6) | (11) |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 0 | 0 |
Ending balance | 9 | 59 |
Pension Postretirement Liability | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (5,506) | (6,763) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Tax (expense) or benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 0 | 0 |
Ending balance | (5,506) | (6,763) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 0 | (872) |
Other comprehensive income (loss) before reclassifications | (2,506) | (1,533) |
Tax (expense) or benefit | 922 | 528 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 453 | 1,302 |
Ending balance | $ (1,131) | $ (575) |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Mar. 31, 2016 | Jan. 02, 2016 | |
Class of Stock [Line Items] | ||||||
Accumulated other comprehensive income (loss) | $ (6,984) | $ (6,984) | $ (5,186) | |||
Cash dividends per common share (in dollars per share) | $ 0.275 | $ 0.265 | $ 0.815 | $ 0.78 | ||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Repurchased common stock, shares | 608,500 | |||||
Repurchased common stock, value | $ 30,400 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 162,300 | 162,300 | ||||
Interest rate swap | ||||||
Class of Stock [Line Items] | ||||||
Derivative, notional amount | $ 150,000 | |||||
Derivative, fixed interest rate | 1.29% | |||||
Derivative liability | 1,800 | 1,800 | ||||
Accumulated other comprehensive income (loss) | $ 1,100 | $ 1,100 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Reclassification) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling and administrative expenses | $ (169,495) | $ (170,371) | $ (496,920) | $ (506,354) |
Tax (expense) or benefit | (16,837) | (18,619) | (38,652) | (37,367) |
Net income attributable to HNI Corporation | 33,813 | 40,848 | 74,685 | 73,205 |
Reclassifications from accumulated other comprehensive income (loss) | Derivative Financial Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to HNI Corporation | (191) | (425) | (453) | (1,302) |
Interest rate swap | Reclassifications from accumulated other comprehensive income (loss) | Derivative Financial Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling and administrative expenses | (302) | 0 | (717) | 0 |
Tax (expense) or benefit | 111 | 0 | 264 | 0 |
Net income attributable to HNI Corporation | (191) | 0 | (453) | 0 |
Diesel hedge | Reclassifications from accumulated other comprehensive income (loss) | Derivative Financial Instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling and administrative expenses | 0 | (680) | 0 | (1,987) |
Tax (expense) or benefit | 0 | 255 | 0 | 685 |
Net income attributable to HNI Corporation | $ 0 | $ (425) | $ 0 | $ (1,302) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Numerators: | ||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 33,813 | $ 40,848 | $ 74,685 | $ 73,205 |
Denominators: | ||||
Denominator for basic EPS weighted-average common shares outstanding | 44,547,375 | 44,263,027 | 44,412,310 | 44,327,608 |
Potentially dilutive shares from stock-based compensation plans | 1,298,000 | 1,140,000 | 1,076,000 | 1,189,000 |
Denominator for diluted EPS (shares) | 45,844,566 | 45,402,537 | 45,488,067 | 45,516,521 |
Earnings per share - basic (in dollars per share) | $ 0.76 | $ 0.92 | $ 1.68 | $ 1.65 |
Earnings per share - diluted (in dollars per share) | $ 0.74 | $ 0.90 | $ 1.64 | $ 1.61 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 352,380 | 536,814 | 437,684 | 383,600 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - Realignment of Office Furniture Facilities and Exit of Business Line - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1.1 | $ 1 | $ 4.2 | |
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.7 | $ 0.8 | $ 2.2 | $ 0.8 |
Restructuring (Changes in Restr
Restructuring (Changes in Restructuring Accruals) (Details) - Realignment of Office Furniture Facilities and Exit of Business Line $ in Thousands | 9 Months Ended |
Oct. 01, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 2, 2016 | $ 221 |
Restructuring charges, excluding amounts in cost of goods sold | 2,057 |
Cash payments | (1,508) |
Balance as of October 1, 2016 | 770 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 2, 2016 | 206 |
Restructuring charges, excluding amounts in cost of goods sold | 1,249 |
Cash payments | (685) |
Balance as of October 1, 2016 | 770 |
Facility Exit Costs & Other | |
Restructuring Reserve [Roll Forward] | |
Balance as of January 2, 2016 | 15 |
Restructuring charges, excluding amounts in cost of goods sold | 808 |
Cash payments | (823) |
Balance as of October 1, 2016 | $ 0 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 287,445 | $ 253,687 |
Accumulated Amortization | 107,763 | 100,624 |
Net | 179,682 | 153,063 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2,016 | 12,000 | |
2,017 | 20,800 | |
2,018 | 22,300 | |
2,019 | 21,300 | |
2,020 | 20,800 | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 18,645 | 18,645 |
Accumulated Amortization | 18,621 | 18,615 |
Net | 24 | 30 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 143,451 | 122,892 |
Accumulated Amortization | 24,446 | 21,193 |
Net | 119,005 | 101,699 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 7,564 | 6,564 |
Accumulated Amortization | 1,236 | 753 |
Net | 6,328 | 5,811 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 117,785 | 105,586 |
Accumulated Amortization | 63,460 | 60,063 |
Net | $ 54,325 | $ 45,523 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Jan. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Aggregated amortization expense | $ 3.2 | $ 2.7 | $ 8.6 | $ 8.2 | |
Trademarks and trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets (excluding goodwill) | $ 41 | $ 41 | $ 41 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Thousands | 9 Months Ended |
Oct. 01, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | $ 332,917 |
Accumulated impairment losses, beginning balance | (55,267) |
Goodwill, net, beginning balance | 277,650 |
Goodwill acquired | 15,871 |
Foreign currency translation adjustments | (4) |
Goodwill, gross, ending balance | 348,784 |
Accumulated impairment losses, ending balance | (55,267) |
Goodwill, net, ending balance | 293,517 |
Office Furniture | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 149,718 |
Accumulated impairment losses, beginning balance | (55,124) |
Goodwill, net, beginning balance | 94,594 |
Goodwill acquired | 15,871 |
Foreign currency translation adjustments | (4) |
Goodwill, gross, ending balance | 165,585 |
Accumulated impairment losses, ending balance | (55,124) |
Goodwill, net, ending balance | 110,461 |
Hearth Products | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 183,199 |
Accumulated impairment losses, beginning balance | (143) |
Goodwill, net, beginning balance | 183,056 |
Goodwill acquired | 0 |
Foreign currency translation adjustments | 0 |
Goodwill, gross, ending balance | 183,199 |
Accumulated impairment losses, ending balance | (143) |
Goodwill, net, ending balance | $ 183,056 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 16,227 | $ 16,719 |
Accruals for warranties issued during period | 14,762 | 14,764 |
Adjustments related to pre-existing warranties | 359 | (230) |
Settlements made during the period | (15,379) | (15,372) |
Balance at end of period | 15,969 | 15,881 |
Standard product warranty accrual, current | 7,700 | 8,200 |
Standard product warranty accrual, noncurrent | $ 8,300 | $ 8,000 |
Post-Retirement Health Care (De
Post-Retirement Health Care (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 184 | $ 201 | $ 552 | $ 603 |
Interest cost | 212 | 204 | 634 | 612 |
Amortization of (gain)/loss | 16 | 59 | 46 | 177 |
Net periodic benefit cost | $ 412 | $ 464 | $ 1,232 | $ 1,392 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 16,837 | $ 18,619 | $ 38,652 | $ 37,367 |
Income before income taxes | $ 50,649 | $ 59,465 | $ 113,333 | $ 110,542 |
Effective income tax rate (percent) | 33.20% | 31.30% | 34.10% | 33.80% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Oct. 01, 2016 | Jan. 02, 2016 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | $ (1,790) | $ (1,252) |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | (1,790) | (1,252) |
Significant unobservable inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | 0 | 0 |
Government securities | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 6,368 | 9,663 |
Government securities | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Government securities | Significant other observable inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 6,368 | 9,663 |
Government securities | Significant unobservable inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Corporate bonds | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 6,140 | 2,405 |
Corporate bonds | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Corporate bonds | Significant other observable inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 6,140 | 2,405 |
Corporate bonds | Significant unobservable inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 0 | $ 0 |
Fair Value Measurements (Long-t
Fair Value Measurements (Long-term Debt) (Details) - USD ($) | Oct. 01, 2016 | Jan. 06, 2016 | Jan. 02, 2016 |
Variable Rate Debt Instruments | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 237,000,000 | $ 40,000,000 | |
Fixed Rate Debt Instruments | |||
Debt Instrument [Line Items] | |||
Long-term debt | 150,000,000 | ||
Long-term debt, fair value | 148,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | $ 400,000,000 | $ 250,000,000 |
Accordion feature | 150,000,000 | ||
Outstanding balance | 237,000,000 | ||
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | 216,000,000 | ||
Short-term Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 21,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Oct. 01, 2016USD ($) |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit | $ 14 |
Trade Letters Of Credit And Bankers Acceptances | |
Line of Credit Facility [Line Items] | |
Letters of credit | $ 5 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2016USD ($) | Oct. 03, 2015USD ($) | Oct. 01, 2016USD ($)Segment | Oct. 03, 2015USD ($) | Jan. 02, 2016USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | Segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 584,629 | $ 615,850 | $ 1,622,204 | $ 1,707,553 | |
Operating Profit | 50,649 | 59,465 | 113,333 | 110,542 | |
Depreciation & Amortization Expense | 17,277 | 14,504 | 48,908 | 42,299 | |
Capital Expenditures (including capitalized software) | 26,643 | 31,691 | 82,499 | 81,573 | |
Identifiable Assets | 1,361,058 | 1,361,058 | $ 1,263,925 | ||
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating Profit | 63,837 | 71,887 | 151,019 | 155,493 | |
Operating segments | Office Furniture | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 454,946 | 475,960 | 1,270,398 | 1,334,013 | |
Operating Profit | 44,729 | 48,389 | 109,396 | 108,332 | |
Depreciation & Amortization Expense | 10,889 | 10,644 | 32,709 | 31,284 | |
Capital Expenditures (including capitalized software) | 13,875 | 19,590 | 43,923 | 45,989 | |
Identifiable Assets | 797,458 | 797,458 | 739,915 | ||
Operating segments | Hearth Products | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 129,683 | 139,890 | 351,806 | 373,540 | |
Operating Profit | 19,108 | 23,498 | 41,623 | 47,161 | |
Depreciation & Amortization Expense | 3,034 | 2,166 | 9,012 | 6,171 | |
Capital Expenditures (including capitalized software) | 1,957 | 2,798 | 8,969 | 7,195 | |
Identifiable Assets | 360,081 | 360,081 | 341,813 | ||
General corporate | |||||
Segment Reporting Information [Line Items] | |||||
Operating Profit | (13,188) | (12,422) | (37,686) | (44,951) | |
Depreciation & Amortization Expense | 3,354 | 1,694 | 7,187 | 4,844 | |
Capital Expenditures (including capitalized software) | 10,811 | $ 9,303 | 29,607 | $ 28,389 | |
Identifiable Assets | $ 203,519 | $ 203,519 | $ 182,197 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Jan. 29, 2016 | Oct. 01, 2016 | Jan. 02, 2016 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 293,517 | $ 277,650 | |
Increase in goodwill | $ 2,000 | ||
Small Office Furniture Company | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Annual sales | $ 30,000 | ||
Cost of acquisition | 34,000 | ||
Intangible assets | 15,000 | ||
Goodwill | $ 14,000 | ||
Small Office Furniture Company | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset other than goodwill, useful life | 3 years | ||
Small Office Furniture Company | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset other than goodwill, useful life | 10 years |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ in Millions | Oct. 07, 2016USD ($) |
Subsequent Event [Line Items] | |
Estimated annual savings | $ 6.9 |
Estimated pre-tax charges | $ 21.1 |