DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 3 Months Ended |
Apr. 01, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | HNI CORP |
Entity Central Index Key | 48,287 |
Document Type | 10-Q |
Document Period End Date | Apr. 1, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-30 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 44,239,850 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 29,128 | $ 36,312 |
Short-term investments | 1,261 | 2,252 |
Receivables | 191,892 | 229,436 |
Inventories | 143,713 | 118,438 |
Prepaid expenses and other current assets | 52,024 | 46,603 |
Total Current Assets | 418,018 | 433,041 |
PROPERTY, PLANT, AND EQUIPMENT | ||
Land and land improvements | 28,960 | 27,403 |
Buildings | 303,904 | 283,930 |
Machinery and equipment | 533,771 | 528,099 |
Construction in progress | 38,843 | 51,343 |
Property plant and equipment, at cost | 905,478 | 890,775 |
Less accumulated depreciation | 542,172 | 534,330 |
Net Property, Plant, and Equipment | 363,306 | 356,445 |
GOODWILL | 290,687 | 290,699 |
DEFERRED INCOME TAXES | 757 | 719 |
OTHER ASSETS | 253,515 | 249,330 |
Total Assets | 1,326,283 | 1,330,234 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 346,141 | 425,046 |
Current maturities of long-term debt | 116,674 | 34,017 |
Current maturities of other long-term obligations | 3,176 | 4,410 |
Total Current Liabilities | 465,991 | 463,473 |
LONG-TERM DEBT | 175,000 | 180,000 |
OTHER LONG-TERM LIABILITIES | 72,166 | 75,044 |
DEFERRED INCOME TAXES | 111,666 | 110,708 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
Capital Stock: | ||
Preferred stock - $1 par value, authorized 2,000 shares, no shares outstanding | 0 | 0 |
Common stock - $1 par value, authorized 200,000 shares, outstanding: April 1, 2017 - 44,240 shares; December 31, 2016 - 44,079 shares | 44,240 | 44,079 |
Additional paid-in capital | 11,853 | 0 |
Retained earnings | 449,390 | 461,524 |
Accumulated other comprehensive income (loss) | (4,373) | (5,000) |
Total HNI Corporation shareholders' equity | 501,110 | 500,603 |
Non-controlling interest | 350 | 406 |
Total Equity | 501,460 | 501,009 |
Total Liabilities and Equity | $ 1,326,283 | $ 1,330,234 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Apr. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares outstanding (in shares) | 44,240,000 | 44,079,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 477,667 | $ 501,037 |
Cost of sales | 303,944 | 315,326 |
Gross profit | 173,723 | 185,711 |
Selling and administrative expenses | 163,666 | 165,106 |
Restructuring charges | 2,123 | 1,086 |
Operating income | 7,934 | 19,519 |
Interest income | 71 | 78 |
Interest expense | 1,046 | 1,874 |
Income before income taxes | 6,959 | 17,723 |
Income taxes | 2,178 | 5,881 |
Net income | 4,781 | 11,842 |
Less: Net loss attributable to the non-controlling interest | (56) | (1) |
Net income attributable to HNI Corporation | $ 4,837 | $ 11,843 |
Net income attributable to HNI Corporation per common share – basic (in dollars per share) | $ 0.11 | $ 0.27 |
Average number of common shares outstanding – basic (in shares) | 44,050,040 | 44,258,357 |
Net income attributable to HNI Corporation per common share – diluted (in dollars per share) | $ 0.11 | $ 0.26 |
Average number of common shares outstanding – diluted (in shares) | 45,452,664 | 45,039,918 |
Foreign currency translation adjustments | $ 345 | $ 157 |
Change in unrealized gains (losses) on marketable securities (net of tax) | 18 | 50 |
Change in derivative financial instruments (net of tax) | 264 | (523) |
Other comprehensive income (loss) (net of tax) | 627 | (316) |
Comprehensive income | 5,408 | 11,526 |
Less: Comprehensive (loss) attributable to non-controlling interest | (56) | (1) |
Comprehensive income attributable to HNI Corporation | $ 5,464 | $ 11,527 |
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. 02, 2016 | $ 477,299 | $ 44,158 | $ 4,407 | $ 433,575 | $ (5,186) | $ 345 |
Comprehensive income: | ||||||
Net income (loss) | 11,842 | 11,843 | (1) | |||
Other comprehensive income (net of tax) | (316) | (316) | ||||
Cash dividends | (11,759) | (11,759) | ||||
Common shares – treasury: | ||||||
Shares purchased | (1,692) | (49) | (1,643) | |||
Shares issued under Members’ Stock Purchase Plan and stock awards | 13,191 | 266 | 12,925 | |||
Ending balance at Apr. 02, 2016 | 488,565 | 44,375 | 15,689 | 433,659 | (5,502) | 344 |
Beginning balance at Dec. 31, 2016 | 501,009 | 44,079 | 0 | 461,524 | (5,000) | 406 |
Comprehensive income: | ||||||
Net income (loss) | 4,781 | 4,837 | (56) | |||
Other comprehensive income (net of tax) | 627 | 627 | ||||
Cash dividends | (12,132) | (12,132) | ||||
Common shares – treasury: | ||||||
Shares purchased | (11,675) | (234) | (6,602) | (4,839) | ||
Shares issued under Members’ Stock Purchase Plan and stock awards | 18,850 | 395 | 18,455 | |||
Ending balance at Apr. 01, 2017 | $ 501,460 | $ 44,240 | $ 11,853 | $ 449,390 | $ (4,373) | $ 350 |
CONSOLIDATED STATEMENTS OF EQU6
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.275 | $ 0.265 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Net Cash Flows From (To) Operating Activities: | ||
Net income | $ 4,781 | $ 11,842 |
Noncash items included in net income: | ||
Depreciation and amortization | 18,839 | 15,251 |
Other post-retirement and post-employment benefits | 398 | 411 |
Stock-based compensation | 4,671 | 5,340 |
Excess tax benefits from stock compensation | 0 | (6) |
Deferred income taxes | 646 | 2,711 |
(Gain) loss on sale, retirement and impairment of long-lived assets and intangibles, net | 784 | 60 |
Other – net | (1,890) | 1,589 |
Net increase (decrease) in operating assets and liabilities | (57,899) | (54,239) |
Increase (decrease) in other liabilities | (2,339) | (3,189) |
Net cash flows from (to) operating activities | (32,009) | (20,230) |
Net Cash Flows From (To) Investing Activities: | ||
Capital expenditures | (25,072) | (21,270) |
Proceeds from sale of property, plant and equipment | 76 | 151 |
Capitalized software | (7,704) | (6,187) |
Acquisition spending, net of cash acquired | 0 | (34,064) |
Purchase of investments | (1,539) | (958) |
Sales or maturities of investments | 1,611 | 900 |
Other – net | 1,510 | 502 |
Net cash flows from (to) investing activities | (31,118) | (60,926) |
Net Cash Flows From (To) Financing Activities: | ||
Proceeds from sales of HNI Corporation common stock | 1,798 | 1,005 |
Withholding related to net share settlements of equity based awards | (209) | 0 |
Purchase of HNI Corporation common stock | (11,266) | (1,692) |
Proceeds from long-term debt | 146,331 | 273,154 |
Payments of note and long-term debt and other financing | (68,579) | (169,540) |
Excess tax benefits from stock compensation | 0 | 6 |
Dividends paid | (12,132) | (11,759) |
Net cash flows from (to) financing activities | 55,943 | 91,174 |
Net increase (decrease) in cash and cash equivalents | (7,184) | 10,018 |
Cash and cash equivalents at beginning of period | 36,312 | 28,548 |
Cash and cash equivalents at end of period | $ 29,128 | $ 38,566 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 01, 2017 | |
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 December 31, 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 three -month period ended April 1, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2017 . 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 December 31, 2016 . |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 01, 2017 | |
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 ended April 1, 2017 , the Corporation recognized $4.7 million of stock based compensation expense. For the three months ended April 2, 2016 , the Corporation recognized $5.3 million 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 $7.2 million and $7.6 million in the three months ended April 1, 2017 and April 2, 2016 , respectively. The Corporation granted time-based restricted stock units with adjusted fair values of $0.5 million in the three months ended April 2, 2016 . As of April 1, 2017 , there was $5.5 million of unrecognized compensation cost, net of forfeiture assumptions, related to non-vested stock options, which the Corporation expects to recognize over a weighted-average remaining service period of 1.4 years, and $0.8 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. As of April 1, 2017 , there was a $5.4 million receivable reflected in "Receivables" in the Condensed Consolidated Balance Sheets relating to stock options exercised but not yet settled. The total amount was paid on or prior to April 5, 2017. |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Corporation values its inventory at the lower of cost or net realizable value with approximately 83 percent valued by the last-in, first-out ("LIFO") costing method. (In thousands) April 1, 2017 December 31, 2016 Finished products $ 88,034 $ 71,223 Materials and work in process 79,839 71,375 LIFO allowance (24,160 ) (24,160 ) $ 143,713 $ 118,438 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | 3 Months Ended |
Apr. 01, 2017 | |
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 three months ended April 1, 2017 : (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 December 31, 2016 $ (1,188 ) $ (105 ) $ (5,167 ) $ 1,460 $ (5,000 ) Other comprehensive income (loss) before reclassifications 345 27 — 226 598 Tax (expense) or benefit — (9 ) — (83 ) (92 ) Amounts reclassified from accumulated other comprehensive (income) loss, net of tax — — — 121 121 Balance at April 1, 2017 $ (843 ) $ (87 ) $ (5,167 ) $ 1,724 $ (4,373 ) 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), net of tax, as applicable for the three months ended April 2, 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 157 77 — (920 ) (686 ) Tax (expense) or benefit — (27 ) — 338 311 Amounts reclassified from accumulated other comprehensive (income) loss net of tax — — — 59 59 Balance at April 2, 2016 $ 479 $ 48 $ (5,506 ) $ (523 ) $ (5,502 ) 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 April 1, 2017 , the fair value of the Corporation's interest rate swap was an asset of $2.7 million , which is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets. The interest rate swap is reported net of tax as $1.7 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 ended April 1, 2017 and April 2, 2016 (in thousands): Three Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income is Presented April 1, 2017 April 2, 2016 Derivative financial instruments Interest rate swap Interest (expense) or income $ (192 ) $ (93 ) Tax (expense) or benefit 71 34 Net of tax $ (121 ) $ (59 ) Amounts in parentheses indicate reductions to profit. During the three months ended April 1, 2017 , the Corporation repurchased 234,375 shares of its common stock at a cost of approximately $11.7 million . During the three months ended April 2, 2016 , the Corporation repurchased 49,400 shares of its common stock at a cost of approximately $1.7 million . As of April 1, 2017 , $125.2 million of the Corporation's Board of Directors' ("Board") current repurchase authorization remained unspent. During the three months ended April 1, 2017 and April 2, 2016 , the Corporation paid dividends to shareholders of $0.275 and $0.265 per share, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2017 | |
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 (In thousands, except per share data) April 1, 2017 April 2, 2016 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 4,837 $ 11,843 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,050 44,258 Potentially dilutive shares from stock-based compensation plans 1,403 782 Denominator for diluted EPS 45,453 45,040 Earnings per share – basic $ 0.11 $ 0.27 Earnings per share – diluted $ 0.11 $ 0.26 The weighted average common stock equivalents presented above do not include the effect of 615,895 and 1,446,530 common stock equivalents for the three months ended April 1, 2017 and April 2, 2016 , respectively, because their inclusion would be anti-dilutive. The Corporation implemented ASU No. 2016-09 in the first quarter of fiscal 2017, which had an immaterial impact on the number of potentially dilutive shares from stock-based compensation plans. See "Note 13. Recently Adopted Accounting Standards" for more information regarding the implementation of ASU No. 2016-09. |
Restructuring
Restructuring | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring costs during the three months ended April 1, 2017 were $6.3 million , of which $4.2 million was accelerated depreciation recorded in "Cost of goods sold" in the Condensed Consolidated Statements of Comprehensive Income. These costs were primarily incurred as part of the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. During the three months ended April 2, 2016 , the Corporation recorded $1.1 million of restructuring costs, primarily in connection with the previously announced closure of the Paris, Kentucky manufacturing facility and acquisition integration relating to our hearth product segment. The following is a summary of changes in restructuring accruals during the three months ended April 1, 2017 : (In thousands) Severance Facility Exit Costs & Other Total Balance as of December 31, 2016 $ 2,704 $ — $ 2,704 Restructuring charges, excluding amounts in cost of goods sold 986 1,137 2,123 Cash payments (701 ) (492 ) (1,193 ) Balance as of April 1, 2017 $ 2,989 $ 645 $ 3,634 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 | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: April 1, 2017 December 31, 2016 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 18,644 $ 18,624 $ 20 $ 18,645 $ 18,623 $ 22 Software 155,425 27,137 128,288 149,587 25,792 123,795 Trademarks and trade names 7,564 1,566 5,998 7,564 1,401 6,163 Customer lists and other 115,729 65,118 50,611 117,789 65,103 52,686 Net definite lived intangible assets $ 297,362 $ 112,445 $ 184,917 $ 293,585 $ 110,919 $ 182,666 Aggregate amortization expense for the three months ended April 1, 2017 and April 2, 2016 was $3.2 million and $2.4 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) 2017 2018 2019 2020 2021 Amortization expense $ 17.0 $ 22.3 $ 21.2 $ 20.4 $ 19.7 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 $37.6 million as of April 1, 2017 and December 31, 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 December 31, 2016 , by reporting segment, are as follows: (In thousands) Office Furniture Hearth Products Total Balance as of December 31, 2016 Goodwill $ 165,643 $ 183,199 $ 348,842 Accumulated impairment losses (58,000 ) (143 ) (58,143 ) Net goodwill balance as of December 31, 2016 107,643 183,056 290,699 Foreign currency translation adjustments (12 ) — (12 ) Balance as of April 1, 2017 Goodwill 165,631 183,199 348,830 Accumulated impairment losses (58,000 ) (143 ) (58,143 ) Net goodwill balance as of April 1, 2017 $ 107,631 $ 183,056 $ 290,687 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 | 3 Months Ended |
Apr. 01, 2017 | |
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: Three Months Ended (In thousands) April 1, 2017 April 2, 2016 Balance at beginning of period $ 15,250 $ 16,227 Accruals for warranties issued during period 5,540 5,480 Adjustments related to pre-existing warranties (116 ) 281 Settlements made during the period (5,548 ) (5,831 ) Balance at end of period $ 15,126 $ 16,157 The portion of the reserve for estimated settlements expected to be paid in the next twelve months was $6.8 million and $7.0 million as of April 1, 2017 and December 31, 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 $8.3 million as of April 1, 2017 and December 31, 2016 , respectively, and is included in "Other Long-Term Liabilities" in the Condensed Consolidated Balance Sheets. |
Post-Retirement Health Care
Post-Retirement Health Care | 3 Months Ended |
Apr. 01, 2017 | |
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 (In thousands) April 1, 2017 April 2, 2016 Service cost $ 185 $ 185 Interest cost 206 211 Amortization of (gain)/loss 7 15 Net periodic benefit cost $ 398 $ 411 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 was $2.2 million on pre-tax income of $7.0 million or an effective tax rate of 31.0 percent . For the three months ended April 2, 2016 , the Corporation's income tax provision was $5.9 million on pre-tax income of $17.7 million or an effective tax rate of 33.2 percent . The effective tax rate was lower in the three months ended April 1, 2017 principally due to the enactment of ASU No. 2016-09 related to stock compensation on decreased quarterly income. See "Note 13. Recently Adopted Accounting Standards" in the Notes to Condensed Consolidated Financial Statements. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when awards vest or are settled. Our tax provision for the three months ended April 1, 2017 includes a tax benefit of $0.6 million related to the adoption of this standard. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 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 $ 6,071 $ — $ 6,071 $ — Corporate bonds $ 6,160 $ — $ 6,160 $ — Derivative financial instruments $ 2,728 $ — $ 2,728 $ — Assets measured at fair value as of December 31, 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 $ 6,268 $ — $ 6,268 $ — Corporate bonds $ 6,017 $ — $ 6,017 $ — Derivative financial instruments $ 2,309 $ — $ 2,309 $ — 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 April 1, 2017 and December 31, 2016 was $290 million and $214 million , respectively, which approximated the fair value. The Corporation’s revolving credit facility under the current credit agreement was entered into January 6, 2016 and matures January 6, 2021. The Corporation deferred the debt issuance costs related to the credit agreement, which are classified as assets, and is amortizing them over the term of the credit agreement. The current portion, which is to be amortized over the next twelve months, is reflected in the "Prepaid expenses and other current assets" line item in the Condensed Consolidated Balance Sheets. The long-term portion is reflected in the "Other Assets" line item in the Condensed Consolidated Balance Sheets. As of April 1, 2017 , there was $290 million outstanding under the $400 million revolving credit facility of which $175 million was classified as long-term as the Corporation does not expect to repay the borrowings within a year. Because the Corporation expects, but is not required, to repay the remaining $115 million in the next twelve months, it was classified as current. The revolving credit facility under the credit agreement is the primary source of committed funding from which the Corporation finances its planned capital expenditures and strategic initiatives, such as acquisitions, repurchases of common stock and certain working capital needs. Non-compliance with the various financial covenant ratios in the credit agreement could prevent the Corporation from being able to access further borrowings under the revolving credit facility, require immediate repayment of all amounts outstanding with respect to the revolving credit facility and/or increase the cost of borrowing. The credit agreement contains a number of covenants, including covenants requiring maintenance of the following financial ratios as of the end of any fiscal quarter: • a consolidated interest coverage ratio (as defined in the credit agreement) of not less than 4.0 to 1.0, based upon the ratio of (a) consolidated EBITDA for the last four fiscal quarters to (b) the sum of consolidated interest charges; and • a consolidated leverage ratio (as defined in the credit agreement) of not greater than 3.5 to 1.0, based upon the ratio of (a) the quarter-end consolidated funded indebtedness to (b) consolidated EBITDA for the last four fiscal quarters. The most restrictive of the financial covenants is the consolidated leverage ratio requirement of 3.5 to 1.0. Under the credit agreement, consolidated EBITDA is defined as consolidated net income before interest expense, income taxes and depreciation and amortization of intangibles, as well as non-cash, nonrecurring charges and all non-cash items increasing net income. At April 1, 2017 , the Corporation was below the maximum allowable ratio and was in compliance with all of the covenants and other restrictions in the credit agreement. The Corporation expects to remain in compliance over the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of $18 million to back certain insurance policies and payment obligations. The Corporation utilizes trade letters of credit and banker's acceptances in the amount of $4 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. Withdrawal Liability From Multi-employer Pension On February 2, 2017, the Corporation was notified of a withdrawal liability from a multi-employer pension fund associated with a business sold by the Corporation as a going concern in 2013. The business subsequently ceased operations, triggering the liability for which it was responsible. The trustee of the pension fund has asserted a claim against the Corporation as a prior indirect owner of the business. The Corporation has not recorded any liability associated with this claim because it believes the likelihood of an unfavorable outcome is neither probable nor remote. The Corporation believes it has strong legal and factual defenses, and intends to vigorously defend itself against this claim. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 3 Months Ended |
Apr. 01, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Corporation implemented the new standard in the first quarter of fiscal 2017. The primary impact of implementation was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2017. Excess tax benefits will be recorded in the operating section of the Condensed Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2017, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in our Condensed Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Implementation of the new standard resulted in the recognition of excess tax benefits in the Corporation's provision for income taxes of $0.6 million as a net tax benefit for the three months ended April 1, 2017 . Prior to the adoption of this standard, that amount would have been recognized as an adjustment to "Additional paid-in capital" in the Condensed Consolidated Balance Sheets. See "Note 10. Income Taxes" in the Notes to Condensed Consolidated Financial Statements for further information. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory . The new standard is intended to simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value rather than the previous guidance of measuring inventory at the lower of cost or market. The Corporation implemented the new standard in the first quarter of fiscal 2017. As the Corporation previously calculated net realizable value when measuring inventory at the lower of cost or market, this standard had an immaterial effect on the condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) . The new standard is to simplify the test for goodwill impairment by eliminating the step 2 requirement. Instead, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard is effective for fiscal 2020, but the Corporation has early adopted the standard in 2017. There is no impact in the first quarter of 2017. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Apr. 01, 2017 | |
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 commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories, principally for the home. For purposes of segment reporting, intercompany 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 costs 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 ended April 1, 2017 and April 2, 2016 , is as follows: Three Months Ended (In thousands) April 1, 2017 April 2, 2016 Net Sales: Office furniture $ 359,981 $ 387,339 Hearth products 117,686 113,698 $ 477,667 $ 501,037 Operating Profit: Office furniture $ 6,444 $ 21,300 Hearth products 11,811 12,561 Total operating profit 18,255 33,861 Unallocated corporate expense (11,296 ) (16,138 ) Income before income taxes $ 6,959 $ 17,723 Depreciation & Amortization Expense: Office furniture $ 12,885 $ 10,693 Hearth products 3,488 2,656 General corporate 2,466 1,902 $ 18,839 $ 15,251 Capital Expenditures (including capitalized software): Office furniture $ 21,020 $ 16,468 Hearth products 2,078 2,553 General corporate 9,678 8,436 $ 32,776 $ 27,457 As of As of (In thousands) April 1, December 31, Identifiable Assets: Office furniture $ 752,115 $ 749,145 Hearth products 340,544 340,494 General corporate 233,624 240,595 $ 1,326,283 $ 1,330,234 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Apr. 01, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures On January 29, 2016, the Corporation acquired OFM, an office furniture company, with annual sales of approximately $30 million at a purchase price of $34.1 million , net of cash acquired, in an all cash transaction. The Corporation finalized the allocation of the purchase price during fourth quarter 2016. There were $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 $14 million of goodwill associated with this acquisition. The goodwill is deductible for income tax purposes. As part of the Corporation's ongoing business strategy, it continues to acquire and divest small office furniture dealerships. There was no change to Goodwill in the first three months of 2017 as a result of this activity. Goodwill increased approximately $2 million in fiscal 2016 as a result of this activity. The Corporation completed the sale of Artcobell, a K-12 education furniture business, on December 31, 2016. A pre-tax non-cash charge of approximately $23 million and a $10 million long term note receivable, which was included in the "Other Assets" line item in the Corporation's Consolidated Balance Sheets in Form 10-K for the fiscal year ended December 31, 2016, were recorded in relation to the sale. Artcobell had been included as part of the Corporation's office furniture segment. As of April 1, 2017 , $0.5 million of the note receivable is current and is included in the "Prepaid expenses and other current assets" line item in the Corporation's Condensed Consolidated Balance Sheets. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 01, 2017 | |
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 net realizable value with approximately 83 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 March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Corporation implemented the new standard in the first quarter of fiscal 2017. The primary impact of implementation was the recognition of excess tax benefits in our provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2017. Excess tax benefits will be recorded in the operating section of the Condensed Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2017, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in our Condensed Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Implementation of the new standard resulted in the recognition of excess tax benefits in the Corporation's provision for income taxes of $0.6 million as a net tax benefit for the three months ended April 1, 2017 . Prior to the adoption of this standard, that amount would have been recognized as an adjustment to "Additional paid-in capital" in the Condensed Consolidated Balance Sheets. See "Note 10. Income Taxes" in the Notes to Condensed Consolidated Financial Statements for further information. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory . The new standard is intended to simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value rather than the previous guidance of measuring inventory at the lower of cost or market. The Corporation implemented the new standard in the first quarter of fiscal 2017. As the Corporation previously calculated net realizable value when measuring inventory at the lower of cost or market, this standard had an immaterial effect on the condensed consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) . The new standard is to simplify the test for goodwill impairment by eliminating the step 2 requirement. Instead, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard is effective for fiscal 2020, but the Corporation has early adopted the standard in 2017. There is no impact in the first quarter of 2017. |
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 commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories, principally for the home. For purposes of segment reporting, intercompany 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 costs 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) | 3 Months Ended |
Apr. 01, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The Corporation values its inventory at the lower of cost or net realizable value with approximately 83 percent valued by the last-in, first-out ("LIFO") costing method. (In thousands) April 1, 2017 December 31, 2016 Finished products $ 88,034 $ 71,223 Materials and work in process 79,839 71,375 LIFO allowance (24,160 ) (24,160 ) $ 143,713 $ 118,438 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 three months ended April 1, 2017 : (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 December 31, 2016 $ (1,188 ) $ (105 ) $ (5,167 ) $ 1,460 $ (5,000 ) Other comprehensive income (loss) before reclassifications 345 27 — 226 598 Tax (expense) or benefit — (9 ) — (83 ) (92 ) Amounts reclassified from accumulated other comprehensive (income) loss, net of tax — — — 121 121 Balance at April 1, 2017 $ (843 ) $ (87 ) $ (5,167 ) $ 1,724 $ (4,373 ) 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), net of tax, as applicable for the three months ended April 2, 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 157 77 — (920 ) (686 ) Tax (expense) or benefit — (27 ) — 338 311 Amounts reclassified from accumulated other comprehensive (income) loss net of tax — — — 59 59 Balance at April 2, 2016 $ 479 $ 48 $ (5,506 ) $ (523 ) $ (5,502 ) 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 ended April 1, 2017 and April 2, 2016 (in thousands): Three Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income is Presented April 1, 2017 April 2, 2016 Derivative financial instruments Interest rate swap Interest (expense) or income $ (192 ) $ (93 ) Tax (expense) or benefit 71 34 Net of tax $ (121 ) $ (59 ) Amounts in parentheses indicate reductions to profit. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 (In thousands, except per share data) April 1, 2017 April 2, 2016 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 4,837 $ 11,843 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,050 44,258 Potentially dilutive shares from stock-based compensation plans 1,403 782 Denominator for diluted EPS 45,453 45,040 Earnings per share – basic $ 0.11 $ 0.27 Earnings per share – diluted $ 0.11 $ 0.26 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Restructuring Accruals | The following is a summary of changes in restructuring accruals during the three months ended April 1, 2017 : (In thousands) Severance Facility Exit Costs & Other Total Balance as of December 31, 2016 $ 2,704 $ — $ 2,704 Restructuring charges, excluding amounts in cost of goods sold 986 1,137 2,123 Cash payments (701 ) (492 ) (1,193 ) Balance as of April 1, 2017 $ 2,989 $ 645 $ 3,634 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: April 1, 2017 December 31, 2016 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 18,644 $ 18,624 $ 20 $ 18,645 $ 18,623 $ 22 Software 155,425 27,137 128,288 149,587 25,792 123,795 Trademarks and trade names 7,564 1,566 5,998 7,564 1,401 6,163 Customer lists and other 115,729 65,118 50,611 117,789 65,103 52,686 Net definite lived intangible assets $ 297,362 $ 112,445 $ 184,917 $ 293,585 $ 110,919 $ 182,666 |
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) 2017 2018 2019 2020 2021 Amortization expense $ 17.0 $ 22.3 $ 21.2 $ 20.4 $ 19.7 |
Schedule of Goodwill | The changes in the carrying amount of goodwill since December 31, 2016 , by reporting segment, are as follows: (In thousands) Office Furniture Hearth Products Total Balance as of December 31, 2016 Goodwill $ 165,643 $ 183,199 $ 348,842 Accumulated impairment losses (58,000 ) (143 ) (58,143 ) Net goodwill balance as of December 31, 2016 107,643 183,056 290,699 Foreign currency translation adjustments (12 ) — (12 ) Balance as of April 1, 2017 Goodwill 165,631 183,199 348,830 Accumulated impairment losses (58,000 ) (143 ) (58,143 ) Net goodwill balance as of April 1, 2017 $ 107,631 $ 183,056 $ 290,687 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Product Warranties Disclosures [Abstract] | |
Activity Associated with Warranty Obligations | Activity associated with warranty obligations was as follows during the periods noted: Three Months Ended (In thousands) April 1, 2017 April 2, 2016 Balance at beginning of period $ 15,250 $ 16,227 Accruals for warranties issued during period 5,540 5,480 Adjustments related to pre-existing warranties (116 ) 281 Settlements made during the period (5,548 ) (5,831 ) Balance at end of period $ 15,126 $ 16,157 |
Post-Retirement Health Care (Ta
Post-Retirement Health Care (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 (In thousands) April 1, 2017 April 2, 2016 Service cost $ 185 $ 185 Interest cost 206 211 Amortization of (gain)/loss 7 15 Net periodic benefit cost $ 398 $ 411 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | Assets measured at fair value as of April 1, 2017 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 $ 6,071 $ — $ 6,071 $ — Corporate bonds $ 6,160 $ — $ 6,160 $ — Derivative financial instruments $ 2,728 $ — $ 2,728 $ — Assets measured at fair value as of December 31, 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 $ 6,268 $ — $ 6,268 $ — Corporate bonds $ 6,017 $ — $ 6,017 $ — Derivative financial instruments $ 2,309 $ — $ 2,309 $ — |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Data | Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three months ended April 1, 2017 and April 2, 2016 , is as follows: Three Months Ended (In thousands) April 1, 2017 April 2, 2016 Net Sales: Office furniture $ 359,981 $ 387,339 Hearth products 117,686 113,698 $ 477,667 $ 501,037 Operating Profit: Office furniture $ 6,444 $ 21,300 Hearth products 11,811 12,561 Total operating profit 18,255 33,861 Unallocated corporate expense (11,296 ) (16,138 ) Income before income taxes $ 6,959 $ 17,723 Depreciation & Amortization Expense: Office furniture $ 12,885 $ 10,693 Hearth products 3,488 2,656 General corporate 2,466 1,902 $ 18,839 $ 15,251 Capital Expenditures (including capitalized software): Office furniture $ 21,020 $ 16,468 Hearth products 2,078 2,553 General corporate 9,678 8,436 $ 32,776 $ 27,457 As of As of (In thousands) April 1, December 31, Identifiable Assets: Office furniture $ 752,115 $ 749,145 Hearth products 340,544 340,494 General corporate 233,624 240,595 $ 1,326,283 $ 1,330,234 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,700 | $ 5,300 | |
Fair value of granted stock options | 7,200 | 7,600 | |
Adjusted fair value of granted restricted stock units | $ 500 | ||
Receivables | 191,892 | $ 229,436 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 5,500 | ||
Remaining requisite service period for unrecognized compensation cost (in years) | 1 year 4 months 10 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 800 | ||
Remaining requisite service period for unrecognized compensation cost (in years) | 1 year | ||
Employee Stock Option Receivable | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Receivables | $ 5,400 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 83.00% | |
Inventories | ||
Finished products | $ 88,034 | $ 71,223 |
Materials and work in process | 79,839 | 71,375 |
LIFO allowance | (24,160) | (24,160) |
Inventories | $ 143,713 | $ 118,438 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 500,603 | |
Other comprehensive income (loss) before reclassifications | 598 | $ (686) |
Tax (expense) or benefit | (92) | 311 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 121 | 59 |
Ending balance | 501,110 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (5,000) | (5,186) |
Ending balance | (4,373) | (5,502) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (1,188) | 322 |
Other comprehensive income (loss) before reclassifications | 345 | 157 |
Tax (expense) or benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 0 | 0 |
Ending balance | (843) | 479 |
Unrealized Gains (Losses) on Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (105) | (2) |
Other comprehensive income (loss) before reclassifications | 27 | 77 |
Tax (expense) or benefit | (9) | (27) |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 0 | 0 |
Ending balance | (87) | 48 |
Pension Postretirement Liability | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (5,167) | (5,506) |
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 | (5,167) | (5,506) |
Derivative Financial Instruments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 1,460 | 0 |
Other comprehensive income (loss) before reclassifications | 226 | (920) |
Tax (expense) or benefit | (83) | 338 |
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 121 | 59 |
Ending balance | $ 1,724 | $ (523) |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||||
Accumulated other comprehensive income (loss) | $ (4,373) | $ (5,000) | ||
Cash dividends per common share (in dollars per share) | $ 0.275 | $ 0.265 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Repurchased common stock, shares | 234,375 | 49,400 | ||
Repurchased common stock, value | $ 11,700 | $ 1,700 | ||
Stock repurchase program, remaining authorized repurchase amount | 125,200 | |||
Interest rate swap | ||||
Class of Stock [Line Items] | ||||
Derivative, notional amount | $ 150,000 | |||
Derivative, fixed interest rate | 1.29% | |||
Derivative liability | 2,700 | |||
Accumulated other comprehensive income (loss) | $ 1,700 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Reclassification) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest (expense) or income | $ (1,046) | $ (1,874) |
Tax (expense) or benefit | (2,178) | (5,881) |
Net income attributable to HNI Corporation | 4,837 | 11,843 |
Interest rate swap | Reclassifications from accumulated other comprehensive income (loss) | Derivative Financial Instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest (expense) or income | (192) | (93) |
Tax (expense) or benefit | 71 | 34 |
Net income attributable to HNI Corporation | $ (121) | $ (59) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Numerators: | ||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 4,837 | $ 11,843 |
Denominators: | ||
Denominator for basic EPS weighted-average common shares outstanding (in shares) | 44,050,040 | 44,258,357 |
Potentially dilutive shares from stock-based compensation plans (in shares) | 1,403,000 | 782,000 |
Denominator for diluted EPS (in shares) | 45,452,664 | 45,039,918 |
Earnings per share - basic (in dollars per share) | $ 0.11 | $ 0.27 |
Earnings per share - diluted (in dollars per share) | $ 0.11 | $ 0.26 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 615,895 | 1,446,530 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) - Realignment of Office Furniture Facilities and Exit of Business Line - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 6.3 | $ 1.1 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 4.2 |
Restructuring (Changes in Restr
Restructuring (Changes in Restructuring Accruals) (Details) - Realignment of Office Furniture Facilities and Exit of Business Line $ in Thousands | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2016 | $ 2,704 |
Restructuring charges, excluding amounts in cost of goods sold | 2,123 |
Cash payments | (1,193) |
Balance as of April 1, 2017 | 3,634 |
Severance | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2016 | 2,704 |
Restructuring charges, excluding amounts in cost of goods sold | 986 |
Cash payments | (701) |
Balance as of April 1, 2017 | 2,989 |
Facility Exit Costs & Other | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2016 | 0 |
Restructuring charges, excluding amounts in cost of goods sold | 1,137 |
Cash payments | (492) |
Balance as of April 1, 2017 | $ 645 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 297,362 | $ 293,585 |
Accumulated Amortization | 112,445 | 110,919 |
Net | 184,917 | 182,666 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2,017 | 17,000 | |
2,018 | 22,300 | |
2,019 | 21,200 | |
2,020 | 20,400 | |
2,021 | 19,700 | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 18,644 | 18,645 |
Accumulated Amortization | 18,624 | 18,623 |
Net | 20 | 22 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 155,425 | 149,587 |
Accumulated Amortization | 27,137 | 25,792 |
Net | 128,288 | 123,795 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 7,564 | 7,564 |
Accumulated Amortization | 1,566 | 1,401 |
Net | 5,998 | 6,163 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 115,729 | 117,789 |
Accumulated Amortization | 65,118 | 65,103 |
Net | $ 50,611 | $ 52,686 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregated amortization expense | $ 3.2 | $ 2.4 | |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets (excluding goodwill) | $ 37.6 | $ 41 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | $ 348,842 |
Accumulated impairment losses, beginning balance | (58,143) |
Goodwill, net, beginning balance | 290,699 |
Foreign currency translation adjustments | (12) |
Goodwill, gross, ending balance | 348,830 |
Accumulated impairment losses, ending balance | (58,143) |
Goodwill, net, ending balance | 290,687 |
Office Furniture | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 165,643 |
Accumulated impairment losses, beginning balance | (58,000) |
Goodwill, net, beginning balance | 107,643 |
Foreign currency translation adjustments | (12) |
Goodwill, gross, ending balance | 165,631 |
Accumulated impairment losses, ending balance | (58,000) |
Goodwill, net, ending balance | 107,631 |
Hearth Products | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 183,199 |
Accumulated impairment losses, beginning balance | (143) |
Goodwill, net, beginning balance | 183,056 |
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 | 3 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2016 | |
Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 15,250 | $ 16,227 | |
Accruals for warranties issued during period | 5,540 | 5,480 | |
Adjustments related to pre-existing warranties | (116) | 281 | |
Settlements made during the period | (5,548) | (5,831) | |
Balance at end of period | 15,126 | $ 16,157 | |
Standard product warranty accrual, current | 6,800 | $ 7,000 | |
Standard product warranty accrual, noncurrent | $ 8,300 | $ 8,300 |
Post-Retirement Health Care (De
Post-Retirement Health Care (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 185 | $ 185 |
Interest cost | 206 | 211 |
Amortization of (gain)/loss | 7 | 15 |
Net periodic benefit cost | $ 398 | $ 411 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 2,178 | $ 5,881 |
Income before income taxes | $ 6,959 | $ 17,723 |
Effective income tax rate (percent) | 31.00% | 33.20% |
Excess tax benefit due to adoption of ASU 2016-09, amount | $ 600 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments | $ 2,728 | $ 2,309 |
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 | 2,728 | 2,309 |
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 | 6,071 | 6,268 |
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 | 6,071 | 6,268 |
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 | 6,160 | 6,017 |
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 | 6,160 | 6,017 |
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) | Apr. 01, 2017USD ($) | Dec. 31, 2016USD ($) |
Variable Rate Debt Instruments | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 290,000,000 | $ 214,000,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 400,000,000 | |
Outstanding balance | 290,000,000 | |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 175,000,000 | |
Short-term Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 115,000,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Ratio of interest coverage to earnings for the last four fiscal quarters | 4 | |
Ratio of leverage to earnings for the last four fiscal quarters | 3.5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Apr. 01, 2017USD ($) |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit | $ 18 |
Trade Letters Of Credit And Bankers Acceptances | |
Line of Credit Facility [Line Items] | |
Letters of credit | $ 4 |
Recently Adopted Accounting S50
Recently Adopted Accounting Standards (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Excess tax benefit due to adoption of ASU 2016-09, amount | $ 0.6 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2017USD ($)Segment | Apr. 02, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | Segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Net sales | $ 477,667 | $ 501,037 | |
Operating profit | 6,959 | 17,723 | |
Depreciation and amortization | 18,839 | 15,251 | |
Capital expenditures (including capitalized software) | 32,776 | 27,457 | |
Identifiable assets | 1,326,283 | $ 1,330,234 | |
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Operating profit | 18,255 | 33,861 | |
Operating segments | Office Furniture | |||
Segment Reporting Information [Line Items] | |||
Net sales | 359,981 | 387,339 | |
Operating profit | 6,444 | 21,300 | |
Depreciation and amortization | 12,885 | 10,693 | |
Capital expenditures (including capitalized software) | 21,020 | 16,468 | |
Identifiable assets | 752,115 | 749,145 | |
Operating segments | Hearth Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 117,686 | 113,698 | |
Operating profit | 11,811 | 12,561 | |
Depreciation and amortization | 3,488 | 2,656 | |
Capital expenditures (including capitalized software) | 2,078 | 2,553 | |
Identifiable assets | 340,544 | 340,494 | |
General corporate | |||
Segment Reporting Information [Line Items] | |||
Operating profit | (11,296) | (16,138) | |
Depreciation and amortization | 2,466 | 1,902 | |
Capital expenditures (including capitalized software) | 9,678 | $ 8,436 | |
Identifiable assets | $ 233,624 | $ 240,595 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 29, 2016 | Apr. 01, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 290,699 | $ 290,687 | |
Increase in goodwill | $ 2,000 | ||
Small Office Furniture Company | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Annual sales | $ 30,000 | ||
Cost of acquisition | 34,100 | ||
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 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Pre-tax non-cash charge | 23,000 | ||
Long term note receivable | $ 10,000 | ||
Receivables | $ 500 |