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HNI HNI

COVER PAGE

COVER PAGE3 Months Ended
Apr. 03, 2021shares
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateApr. 3,
2021
Document Transition Reportfalse
Entity File Number1-14225
Entity Registrant NameHNI Corporation
Entity Incorporation, State or Country CodeIA
Entity Tax Identification Number42-0617510
Entity Address, Address Line One600 East Second Street
Entity Address, Address Line TwoP.O. Box 1109
Entity Address, City or TownMuscatine
Entity Address, State or ProvinceIA
Entity Address, Postal Zip Code52761-0071
City Area Code563
Local Phone Number272-7400
Title of 12(b) SecurityCommon Stock
Trading SymbolHNI
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding43,552,458
Entity Central Index Key0000048287
Amendment Flagfalse
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Current Fiscal Year End Date--01-01

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Income Statement [Abstract]
Net sales $ 484,293 $ 468,704
Cost of sales304,347 292,686
Gross profit179,946 176,018
Selling and administrative expenses157,346 167,085
Impairment charges0 32,661
Operating income (loss)22,600 (23,728)
Interest expense, net1,755 1,811
Income (loss) before income taxes20,845 (25,539)
Income taxes5,827 (1,643)
Net income (loss)15,018 (23,896)
Less: Net loss attributable to non-controlling interest(1)(1)
Net income (loss) attributable to HNI Corporation $ 15,019 $ (23,895)
Average number of common shares outstanding – basic (in shares)43,163 42,628
Net income (loss) attributable to HNI Corporation per common share – basic (in dollars per share) $ 0.35 $ (0.56)
Average number of common shares outstanding – diluted (in shares)43,584 42,628
Net income (loss) attributable to HNI Corporation per common share – diluted (in dollars per share) $ 0.34 $ (0.56)
Foreign currency translation adjustments $ (132) $ (600)
Change in unrealized gains (losses) on marketable securities, net of tax(100)59
Change in derivative financial instruments, net of tax263 (2,216)
Other comprehensive income (loss), net of tax31 (2,757)
Comprehensive income (loss)15,049 (26,653)
Less: Comprehensive loss attributable to non-controlling interest(1)(1)
Comprehensive income (loss) attributable to HNI Corporation $ 15,050 $ (26,652)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Current Assets:
Cash and cash equivalents $ 94,281 $ 116,120
Short-term investments1,776 1,687
Receivables198,039 207,971
Allowance for doubtful accounts(4,904)(5,514)
Inventories154,176 137,811
Prepaid expenses and other current assets42,204 37,660
Total Current Assets485,572 495,735
Property, Plant, and Equipment:
Land and land improvements29,989 29,691
Buildings294,760 293,708
Machinery and equipment580,398 578,643
Construction in progress20,460 17,750
Property plant and equipment, at cost925,607 919,792
Less accumulated depreciation562,717 553,835
Net Property, Plant, and Equipment362,890 365,957
Right-of-use Finance Leases10,119 6,095
Right-of-use Operating Leases66,897 70,219
Goodwill and Other Intangible Assets455,486 458,896
Other Assets24,617 21,130
Total Assets1,405,581 1,418,032
Current Liabilities:
Accounts payable and accrued expenses367,072 413,638
Current maturities of long-term debt1,261 841
Current maturities of other long-term obligations3,731 2,990
Current lease obligations - finance2,398 1,589
Current lease obligations - operating20,195 19,970
Total Current Liabilities394,657 439,028
Long-Term Debt174,545 174,524
Long-Term Lease Obligations - Finance7,677 4,516
Long-Term Lease Obligations - Operating50,222 53,249
Other Long-Term Liabilities84,895 81,264
Deferred Income Taxes75,824 74,706
Capital Stock:
     Preferred stock - $1 par value, authorized 2,000 shares, no shares outstanding0 0
Common stock - $1 par value, authorized 200,000 shares, outstanding: April 3, 2021 – 43,552 shares; January 2, 2021 – 42,919 shares43,552 42,919
Additional paid-in capital63,447 38,659
Retained earnings519,559 517,994
Accumulated other comprehensive income (loss)(9,122)(9,153)
Total HNI Corporation shareholders' equity617,436 590,419
Non-controlling interest325 326
Total Equity617,761 590,745
Total Liabilities and Equity $ 1,405,581 $ 1,418,032

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / sharesApr. 03, 2021Jan. 02, 2021
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)43,552,000 42,919,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in ThousandsTotalCumulative Effect, Period Of Adoption, AdjustmentDividend DeclaredDividend PaidCommon StockAdditional Paid-in CapitalRetained EarningsRetained EarningsCumulative Effect, Period Of Adoption, AdjustmentRetained EarningsDividend DeclaredRetained EarningsDividend PaidAccumulated Other Comprehensive Income (Loss)Non-controlling Interest
Beginning balance at Dec. 28, 2019 $ 584,368 $ (131) $ 42,595 $ 19,799 $ 529,723 $ (131) $ (8,073) $ 324
Comprehensive income:
Net income (loss)(23,896)(23,895)(1)
Other comprehensive income (loss), net of tax(2,757)(2,757)
Dividends $ (46) $ (13,033) $ (46) $ (13,033)
Common shares – treasury:
Shares purchased(5,741)(187)(4,365)(1,189)
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax12,891 239 12,652
Ending balance at Mar. 28, 2020551,655 42,647 28,086 491,429 (10,830)323
Beginning balance at Jan. 02, 2021590,745 42,919 38,659 517,994 (9,153)326
Comprehensive income:
Net income (loss)15,018 15,019 (1)
Other comprehensive income (loss), net of tax31 31
Dividends $ (281) $ (13,173) $ (281) $ (13,173)
Common shares – treasury:
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax25,421 633 24,788
Ending balance at Apr. 03, 2021 $ 617,761 $ 43,552 $ 63,447 $ 519,559 $ (9,122) $ 325

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share) $ 0.305 $ 0.305
Cash dividends (in dollars per share) $ 0.305 $ 0.305

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Net Cash Flows From (To) Operating Activities:
Net income (loss) $ 15,018 $ (23,896)
Non-cash items included in net income:
Depreciation and amortization20,463 19,487
Other post-retirement and post-employment benefits332 364
Stock-based compensation5,220 4,358
Reduction in carrying amount of right-of-use assets6,537 5,599
Deferred income taxes1,076 12,258
Impairment of goodwill and intangible assets0 32,661
Other – net1,315 (2,252)
Net increase (decrease) in operating assets and liabilities(51,436)(81,573)
Increase (decrease) in other liabilities3,159 (312)
Net cash flows from (to) operating activities1,684 (33,306)
Net Cash Flows From (To) Investing Activities:
Capital expenditures(16,197)(8,488)
Proceeds from sale of property, plant, and equipment48 49
Capitalized software(2,767)(4,671)
Acquisition spending, net of cash acquired(1,408)(9,321)
Purchase of investments(598)(1,456)
Sales or maturities of investments515 996
Net cash flows from (to) investing activities(20,407)(22,891)
Net Cash Flows From (To) Financing Activities:
Payments of long-term debt(118)(15,000)
Proceeds from long-term debt547 70,129
Dividends paid(13,234)(13,033)
Purchase of HNI Corporation common stock0 (5,839)
Proceeds from sales of HNI Corporation common stock13,030 722
Other – net(3,341)2,558
Net cash flows from (to) financing activities(3,116)39,537
Net increase (decrease) in cash and cash equivalents(21,839)(16,660)
Cash and cash equivalents at beginning of period116,120 52,073
Cash and cash equivalents at end of period $ 94,281 $ 35,413

Basis of Presentation

Basis of Presentation3 Months Ended
Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of PresentationBasis of PresentationThe 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, 2021, 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 3, 2021, are not necessarily indicative of the results expected for the fiscal year ending January 1, 2022.  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, 2021. Certain reclassifications have been made within the interim financial information to conform to the current presentation.

Revenue from Contracts with Cus

Revenue from Contracts with Customers3 Months Ended
Apr. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with CustomersRevenue from Contracts with Customers Disaggregation of Revenue Revenue from contracts with customers disaggregated by product category is as follows (in thousands): Three Months Ended April 3, March 28, Systems and storage $ 182,859 $ 204,021 Seating 101,650 115,872 Other 18,239 18,493 Total workplace furnishings 302,748 338,386 Residential building products 181,545 130,318 Net sales $ 484,293 $ 468,704 Sales by product category are subject to similar economic factors and market conditions. See “Note 15. Reportable Segment Information” in the Notes to Condensed Consolidated Financial Statements for further information about operating segments. Contract Assets and Contract Liabilities In addition to trade receivables, the Corporation has contract assets consisting of funds paid to certain workplace furnishings dealers in exchange for their multi-year commitment to market and sell the Corporation’s products. These contract assets are amortized over the term of the contracts and recognized as a reduction of revenue. For contracts with a duration of less than one year, the Corporation has elected the practical expedient to recognize incremental costs to obtain a contract as an expense when incurred. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities. Contract assets and contract liabilities were as follows (in thousands): April 3, January 2, Trade receivables (1) $ 198,039 $ 207,971 Contract assets (current) (2) $ 761 $ 761 Contract assets (long-term) (3) $ 2,174 $ 2,486 Contract liabilities (4) $ 47,022 $ 53,070 The index below indicates the line item in the Condensed Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the three months ended April 3, 2021, were as follows (in thousands): Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of contract assets to contra-revenue $ (312) $ — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (47,347) Contract liabilities paid — 54,735 Cash received in advance and not recognized as revenue — (51,014) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 49,674 Net change $ (312) $ 6,048 Changes in contract asset and contract liability balances during the three months ended March 28, 2020 were as follows (in thousands): Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of contract assets to contra-revenue $ (164) $ — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (24,610) Contract liabilities paid — 39,064 Cash received in advance and not recognized as revenue — (19,220) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 21,710 Net change $ (164) $ 16,944 Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon completion of the performance obligations. The amount of revenue recognized during the three months ended April 3, 2021, that was included in the January 2, 2021, contract liabilities balance was $21.1 million. Performance Obligations The Corporation recognizes revenue for sales of workplace furnishings and residential building products at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment of the product. In certain circumstances, transfer of control to the customer does not occur until the goods are received by the customer or upon installation and/or customer acceptance, depending on the terms of the underlying contracts. Contracts typically have a duration of less than one year and normally do not include a significant financing component. Generally, payment is due within 30 days of invoicing. The Corporation's backlog orders are typically cancellable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation has elected the practical expedient permitted in the revenue accounting standard not to disclose the unsatisfied performance obligation as of period end. The backlog is typically fulfilled within a few months. Significant Judgments The amount of consideration the Corporation receives and revenue recognized varies with changes in rebate and marketing program incentives, as well as early pay discounts, offered to customers. The Corporation uses significant judgment throughout the year in estimating the reduction in net sales driven by variable consideration for rebate and marketing programs. Judgments made include expected sales levels and utilization of funds. However, this judgment factor is significantly reduced at the end of each year when sales volumes and the impact to rebate and marketing programs are known and recorded as the programs typically end near the Corporation's fiscal year end.

Acquisitions

Acquisitions3 Months Ended
Apr. 03, 2021
Asset Acquisition [Abstract]
AcquisitionsAcquisitions During the three months ended April 3, 2021, the Corporation acquired the assets of a residential building products distributor in an all-cash deal. The aggregate purchase price was approximately $1.6 million, and the preliminary allocation includes $1.3 million of tax deductible goodwill. The Corporation will finalize the allocation of the purchase price during 2021 based on the final purchase price and any adjustments required over the remaining measurement period. On December 31, 2020, the Corporation acquired Design Public Group ("DPG"), a leading e-Commerce distributor of high-design furniture and accessories for the office and home. This transaction, which was structured as an asset acquisition and consummated entirely in cash of approximately $50 million, aligns with the Corporation's long-term strategies related to digital and e-Commerce initiatives. Due to the timing of the transaction, DPG had no net sales or expenses included in the Corporation's Consolidated Statement of Comprehensive Income for fiscal 2020. DPG's preliminary assets and liabilities are included in the Corporation's workplace furnishings segment, and preliminary goodwill, which is expected to be tax-deductible, is assigned to its own reporting unit. The provisional DPG purchase price allocation and estimated amortization periods of identified intangible assets as of the date of acquisition is as follows (dollars in thousands): Fair Value Weighted Average Amortization Period Inventories $ 1,058 Prepaid expenses and other current assets 381 Accounts payable and accrued expenses (8,299) Goodwill 39,800 Customer lists 9,700 6 years Software 3,800 4 years Trade names 3,400 10 years Other intangible assets 200 3 years Total net assets $ 50,040 The provisional purchase accounting remains open with respect to the valuation of intangible assets and goodwill. The valuation analysis requires the use of complex management estimates and assumptions such as future cash flows, discount rates, royalty rates, long-term growth rates, and technology build costs. At this time, intangible assets and goodwill are recorded based on preliminary assumptions, and the Corporation has not obtained all of the information necessary to finalize the determination of fair values of intangible assets. The portions of the allocation that are provisional may be adjusted to reflect the finally determined amounts, and those adjustments may be material. The Corporation expects to finalize the purchase price allocation later in 2021.

Inventories

Inventories3 Months Ended
Apr. 03, 2021
Inventory Disclosure [Abstract]
InventoriesInventories The Corporation values its inventory at the lower of cost or net realizable value. Inventories included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands): April 3, January 2, Finished products $ 113,531 $ 98,527 Materials and work in process 71,625 70,264 Last-in, first-out ("LIFO") allowance (30,980) (30,980) Total inventories $ 154,176 $ 137,811 Inventory valued by the LIFO costing method 77 % 75 %

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets3 Months Ended
Apr. 03, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible AssetsGoodwill and Other Intangible Assets Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands): April 3, January 2, Goodwill $ 293,684 $ 292,434 Definite-lived intangible assets 135,237 139,863 Indefinite-lived intangible assets 26,565 26,599 Total goodwill and other intangible assets $ 455,486 $ 458,896 Goodwill The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands): Workplace Furnishings Residential Building Products Total Balance as of January 2, 2021 Goodwill $ 168,477 $ 196,976 $ 365,453 Accumulated impairment losses (72,876) (143) (73,019) Net goodwill balance as of January 2, 2021 95,601 196,833 292,434 Goodwill acquired — 1,250 1,250 Balance as of April 3, 2021 Goodwill 168,477 198,226 366,703 Accumulated impairment losses (72,876) (143) (73,019) Net goodwill balance as of April 3, 2021 $ 95,601 $ 198,083 $ 293,684 See "Note 3. Acquisitions" for additional information regarding goodwill acquired in the year-to-date period. Definite-lived intangible assets The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands): April 3, 2021 January 2, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Software $ 184,752 $ 84,205 $ 100,547 $ 182,127 $ 78,619 $ 103,508 Trademarks and trade names 9,964 3,764 6,200 9,964 3,546 6,418 Customer lists and other 90,910 62,420 28,490 91,002 61,065 29,937 Net definite-lived intangible assets $ 285,626 $ 150,389 $ 135,237 $ 283,093 $ 143,230 $ 139,863 Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows (in thousands): Three Months Ended April 3, March 28, Capitalized software $ 5,348 $ 4,550 Other definite-lived intangibles $ 1,899 $ 1,523 The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five years is as follows (in millions): 2021 2022 2023 2024 2025 Amortization expense $ 28.7 $ 25.1 $ 21.0 $ 18.0 $ 16.3 Indefinite-lived intangible assets The Corporation also owns certain intangible assets, which are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands): April 3, January 2, Trademarks and trade names $ 26,565 $ 26,599 The immaterial change in the indefinite-lived intangible assets balances shown above is related to foreign currency translation impacts. Impairment Analysis

Product Warranties

Product Warranties3 Months Ended
Apr. 03, 2021
Product Warranties Disclosures [Abstract]
Product WarrantiesProduct WarrantiesThe Corporation issues certain warranty policies on its workplace furnishings and residential building products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. Allowances have been established for the anticipated future costs associated with the Corporation's warranty programs. A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience. Actual costs incurred could differ from the original estimates, requiring adjustments to the allowance. Activity associated with warranty obligations was as follows (in thousands): Three Months Ended April 3, March 28, Balance at beginning of period $ 16,109 $ 15,865 Accruals for warranties issued during period 2,370 3,224 Adjustments related to pre-existing warranties — 514 Settlements made during the period (2,192) (3,382) Balance at end of period $ 16,287 $ 16,221 The current and long-term portions of the allowance for estimated settlements are included within "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Condensed Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid (in thousands): April 3, January 2, Current - in the next twelve months $ 5,942 $ 5,918 Long-term - beyond one year 10,345 10,191 Total $ 16,287 $ 16,109

Long-Term Debt

Long-Term Debt3 Months Ended
Apr. 03, 2021
Debt Disclosure [Abstract]
Long-Term DebtLong-Term Debt Long-term debt is as follows (in thousands): April 3, January 2, Revolving credit facility with interest at a variable rate (April 3, 2021 - 1.1%; January 2, 2021 - 1.2%) $ 75,000 $ 75,000 Fixed rate notes due in 2025 with an interest rate of 4.22% 50,000 50,000 Fixed rate notes due in 2028 with an interest rate of 4.40% 50,000 50,000 Other amounts 1,261 841 Deferred debt issuance costs (455) (476) Total debt 175,806 175,365 Less: Current maturities of long-term debt 1,261 841 Long-term debt $ 174,545 $ 174,524 The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at April 3, 2021, was $75 million, which approximated fair value. The fair value of the fixed rate notes was estimated based on a discounted cash flow method (Level 2) to be $116 million at April 3, 2021. As of April 3, 2021, the Corporation’s revolving credit facility borrowings were under the credit agreement entered into on April 20, 2018, with a scheduled maturity of April 20, 2023. 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 of debt issuance costs of $0.4 million is the amount to be amortized over the next twelve months based on the current credit agreement and is reflected in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheets. The long-term portion of debt issuance costs of $0.4 million is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets. As of April 3, 2021, there was $75 million outstanding under the $450 million revolving credit facility. The entire amount drawn under the revolving credit facility is considered long-term as the Corporation assumes no obligation to repay any of the amounts borrowed in the next twelve months. Based on current earnings before interest, taxes, depreciation and amortization, the Corporation can access the full remaining $375 million of borrowing capacity available under the revolving credit facility and maintain compliance with applicable covenants. In addition to cash flows from operations, the revolving credit facility under the credit agreement is the primary source of daily operating capital for the Corporation and provides additional financial capacity for capital expenditures, repurchases of common stock, and strategic initiatives, such as acquisitions. In addition to the revolving credit facility, the Corporation also has $100 million of borrowings outstanding under private placement note agreements entered into on May 31, 2018. Under the agreements, the Corporation issued $50 million of seven-year fixed rate notes with an interest rate of 4.22 percent, due May 31, 2025, and $50 million of ten-year fixed rate notes with an interest rate of 4.40 percent, due May 31, 2028. The Corporation deferred the debt issuance costs related to the private placement note agreements, which are classified as a reduction of long-term debt, and is amortizing them over the terms of the private placement note agreements. The deferred debt issuance costs do not reduce the amount owed by the Corporation under the terms of the private placement note agreements. As of April 3, 2021, the debt issuance costs balance of $0.5 million related to the private placement note agreements is reflected in "Long-Term Debt" in the Condensed Consolidated Balance Sheets. The credit agreement and private placement notes both contain financial and non-financial covenants. The covenants under both are substantially the same. Non-compliance with covenants under the agreements could prevent the Corporation from being able to access further borrowings, require immediate repayment of all amounts outstanding, and/or increase the cost of borrowing. Covenants require maintenance of financial ratios as of the end of any fiscal quarter, including: • 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 items that increase or decrease net income. As of April 3, 2021, 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 with all of the covenants and other restrictions in the credit agreement over the next twelve months.

Income Taxes

Income Taxes3 Months Ended
Apr. 03, 2021
Income Tax Disclosure [Abstract]
Income TaxesIncome 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 following table summarizes the Corporation's income tax provision (dollars in thousands): Three Months Ended April 3, March 28, Income (loss) before income taxes $ 20,845 $ (25,539) Income taxes $ 5,827 $ (1,643) Effective tax rate 28.0 % 6.4 % The Corporation's effective tax rate was higher in the three months ended April 3, 2021, compared to the same period last year. The variance is due to higher financial performance in the current year period and an improved full year 2021 income outlook, relative to the prior year quarter performance and full year outlook which were adversely impacted by the onset of the COVID-19 pandemic and resulting significant economic disruption. This resulted in a greater rate benefit from tax credits in the first quarter of 2020.

Fair Value Measurements of Fina

Fair Value Measurements of Financial Instruments3 Months Ended
Apr. 03, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements of Financial InstrumentsFair Value Measurements of Financial InstrumentsFor recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, and deferred stock-based compensation. The marketable securities are comprised of money market funds, government securities, and corporate bonds. 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. Financial instruments measured at fair value were as follows (in thousands): Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance as of April 3, 2021 Cash and cash equivalents (including money market funds) (1) $ 94,281 $ 94,281 $ — $ — Government securities (2) $ 6,315 $ — $ 6,315 $ — Corporate bonds (2) $ 7,227 $ — $ 7,227 $ — Derivative financial instruments - liability (3) $ 1,953 $ — $ 1,953 $ — Deferred stock-based compensation (4) $ 7,607 $ — $ 7,607 $ — Balance as of January 2, 2021 Cash and cash equivalents (including money market funds) (1) $ 116,120 $ 116,120 $ — $ — Government securities (2) $ 6,371 $ — $ 6,371 $ — Corporate bonds (2) $ 7,228 $ — $ 7,228 $ — Derivative financial instruments - liability (3) $ 2,328 $ — $ 2,328 $ — Deferred stock-based compensation (4) $ 7,207 $ — $ 7,207 $ — The index below indicates the line item in the Condensed Consolidated Balance Sheets where the financial instruments are reported: (1) "Cash and cash equivalents" (2) Current portion - "Short-term investments"; Long-term portion - "Other Assets" (3) Current portion - "Accounts payable and accrued expenses"; Long-term portion - "Other Long-Term Liabilities" (4) Current portion - "Current maturities of other long-term obligations"; Long-term portion - "Other Long-Term Liabilities"

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity3 Months Ended
Apr. 03, 2021
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss) and Shareholders' EquityAccumulated Other Comprehensive Income (Loss) and Shareholders' Equity The following tables summarize the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable (in thousands): Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance as of January 2, 2021 $ (1,071) $ 360 $ (6,682) $ (1,760) $ (9,153) Other comprehensive income (loss) before reclassifications (132) (127) — 130 (129) Tax (expense) or benefit — 27 — (31) (4) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — 164 164 Balance as of April 3, 2021 $ (1,203) $ 260 $ (6,682) $ (1,497) $ (9,122) Amounts in parentheses indicate reductions to equity. Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance as of December 28, 2019 $ (2,912) $ 95 $ (5,762) $ 506 $ (8,073) Other comprehensive income (loss) before reclassifications (600) 75 — (2,756) (3,281) Tax (expense) or benefit — (16) — 648 632 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — (108) (108) Balance as of March 28, 2020 $ (3,512) $ 154 $ (5,762) $ (1,710) $ (10,830) Amounts in parentheses indicate reductions to equity. Interest Rate Swap In 2019, concurrent with the termination of a previous interest rate swap, the Corporation entered into a new interest rate swap transaction to hedge $75 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of this interest rate swap, the Corporation pays a fixed rate of 1.42 percent and receives one month LIBOR on a $75 million notional value expiring April 2023. As of April 3, 2021, the fair value of the Corporation's interest rate swap liability was $2.0 million. The unrecognized change in value of the interest rate swap is reported net of tax as $(1.5) 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) (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 3, March 28, Derivative financial instruments Interest rate swap Interest expense, net $ (214) $ 114 Income taxes 50 (6) Net of tax $ (164) $ 108 Amounts in parentheses indicate reductions to profit. Dividend The Corporation declared and paid cash dividends per common share as follows (in dollars): Three Months Ended April 3, March 28, Dividends per common share $ 0.305 $ 0.305 Stock Repurchase The following table summarizes shares repurchased and settled by the Corporation (in thousands, except share and per share data): Three Months Ended April 3, March 28, Shares repurchased — 186,700 Average price per share $ — $ 30.75 Cash purchase price $ — $ (5,741) Purchases unsettled as of quarter end — 276 Prior year purchases settled in current year — (374) Shares repurchased per cash flow $ — $ (5,839)

Earnings Per Share

Earnings Per Share3 Months Ended
Apr. 03, 2021
Earnings Per Share [Abstract]
Earnings Per ShareEarnings Per Share The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS") (in thousands, except per share data): Three Months Ended April 3, March 28, Numerator: Numerator for both basic and diluted EPS attributable to HNI Corporation net income (loss) $ 15,019 $ (23,895) Denominators: Denominator for basic EPS weighted-average common shares outstanding 43,163 42,628 Potentially dilutive shares from stock-based compensation plans 421 — Denominator for diluted EPS 43,584 42,628 Earnings per share – basic $ 0.35 $ (0.56) Earnings per share – diluted $ 0.34 $ (0.56) The weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive (in thousands): Three Months Ended April 3, March 28, Common stock equivalents excluded because their inclusion would be anti-dilutive 2,112 2,841

Stock-Based Compensation

Stock-Based Compensation3 Months Ended
Apr. 03, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based CompensationStock-Based Compensation The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award. Forms of awards issued under shareholder approved plans include stock options, restricted stock units based on a service condition ("restricted stock units"), restricted stock units based on both performance and service conditions ("performance stock units"), and shares issued under member stock purchase plans. Stock-based compensation expense related to stock options, restricted stock units, and performance stock units is recognized over the employees' requisite service periods, adjusted for an estimated forfeiture rate for those shares not expected to vest. Additionally, expense related to performance stock units is adjusted for the probability that the Corporation will perform within an established target range of cumulative profitability over a multi-year period. The following table summarizes expense associated with these plans (in thousands): Three Months Ended April 3, March 28, Compensation cost $ 5,220 $ 4,358 The units granted by the Corporation had fair values as follows (in thousands): Three Months Ended April 3, March 28, Restricted stock units $ 15,707 $ 5,777 Performance stock units $ 6,013 $ 5,777 The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and stock units as of April 3, 2021: Unrecognized Compensation Expense Weighted-Average Remaining Non-vested stock options $ 1,037 0.9 Non-vested restricted stock units $ 10,334 1.3 Non-vested performance stock units $ 6,761 1.4

Recently Adopted Accounting Sta

Recently Adopted Accounting Standards3 Months Ended
Apr. 03, 2021
Accounting Changes and Error Corrections [Abstract]
Recently Adopted Accounting StandardsRecently Adopted Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes . This update simplifies various aspects related to accounting for income taxes, removes certain exceptions to the general principles in ASC 740, and clarifies and amends existing guidance to improve consistent application. The Corporation adopted ASC 740 in the first quarter of fiscal 2021, with no material effect on the Condensed Consolidated Financial Statements and related footnote disclosures.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies3 Months Ended
Apr. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and ContingenciesGuarantees, Commitments, and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of approximately $24 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and banker's acceptances to guarantee certain payments to overseas suppliers; as of April 3, 2021, there were no outstanding amounts related to these types of guarantees. 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, after consultation with legal counsel, 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.

Reportable Segment Information

Reportable Segment Information3 Months Ended
Apr. 03, 2021
Segment Reporting [Abstract]
Reportable Segment InformationReportable Segment Information Management views the Corporation as being in two reportable segments based on industries: workplace furnishings and residential building products, with the former being the principal segment. The aggregated workplace furnishings segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. The residential building products segment manufactures and markets a full array of gas, wood, electric, and pellet fueled fireplaces, inserts, stoves, facings, and accessories. For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated general corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation's corporate operations. 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, IT infrastructure, 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 was as follows (in thousands): Three Months Ended April 3, March 28, Net Sales: Workplace furnishings $ 302,748 $ 338,386 Residential building products 181,545 130,318 Total $ 484,293 $ 468,704 Income (Loss) Before Income Taxes: Workplace furnishings $ (3,071) $ (33,231) Residential building products 39,849 20,671 General corporate (14,178) (11,168) Operating income 22,600 (23,728) Interest expense, net 1,755 1,811 Total $ 20,845 $ (25,539) Depreciation and Amortization Expense: Workplace furnishings $ 11,984 $ 11,332 Residential building products 2,410 2,306 General corporate 6,069 5,849 Total $ 20,463 $ 19,487 Capital Expenditures (including capitalized software): Workplace furnishings $ 10,487 $ 7,101 Residential building products 4,710 2,973 General corporate 3,767 3,085 Total $ 18,964 $ 13,159 As of As of Identifiable Assets: Workplace furnishings $ 757,753 $ 762,780 Residential building products 390,520 381,550 General corporate 257,308 273,702 Total $ 1,405,581 $ 1,418,032

Recently Adopted Accounting S_2

Recently Adopted Accounting Standards (Policies)3 Months Ended
Apr. 03, 2021
Accounting Changes and Error Corrections [Abstract]
RevenuePerformance Obligations The Corporation recognizes revenue for sales of workplace furnishings and residential building products at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment of the product. In certain circumstances, transfer of control to the customer does not occur until the goods are received by the customer or upon installation and/or customer acceptance, depending on the terms of the underlying contracts. Contracts typically have a duration of less than one year and normally do not include a significant financing component. Generally, payment is due within 30 days of invoicing. The Corporation's backlog orders are typically cancellable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation has elected the practical expedient permitted in the revenue accounting standard not to disclose the unsatisfied performance obligation as of period end. The backlog is typically fulfilled within a few months. Significant Judgments The amount of consideration the Corporation receives and revenue recognized varies with changes in rebate and marketing program incentives, as well as early pay discounts, offered to customers. The Corporation uses significant judgment throughout the year in estimating the reduction in net sales driven by variable consideration for rebate and marketing programs. Judgments made include expected sales levels and utilization of funds. However, this judgment factor is significantly reduced at the end of each year when sales volumes and the impact to rebate and marketing programs are known and recorded as the programs typically end near the Corporation's fiscal year end.
InventoriesThe Corporation values its inventory at the lower of cost or net realizable value.
Goodwill and Other Intangible AssetsImpairment AnalysisThe 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 also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist.
Product WarrantiesThe Corporation issues certain warranty policies on its workplace furnishings and residential building products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. Allowances have been established for the anticipated future costs associated with the Corporation's warranty programs.A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience.  Actual costs incurred could differ from the original estimates, requiring adjustments to the allowance.
Fair Value MeasurementsFor recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, and deferred stock-based compensation.  The marketable securities are comprised of money market funds, government securities, and corporate bonds. 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.
Share-based Compensation, Option and Incentive PlansThe Corporation measures stock-based compensation expense at grant date, based on the fair value of the award. Forms of awards issued under shareholder approved plans include stock options, restricted stock units based on a service condition ("restricted stock units"), restricted stock units based on both performance and service conditions ("performance stock units"), and shares issued under member stock purchase plans. Stock-based compensation expense related to stock options, restricted stock units, and performance stock units is recognized over the employees' requisite service periods, adjusted for an estimated forfeiture rate for those shares not expected to vest. Additionally, expense related to performance stock units is adjusted for the probability that the Corporation will perform within an established target range of cumulative profitability over a multi-year period.
Business Segment InformationManagement views the Corporation as being in two reportable segments based on industries: workplace furnishings and residential building products, with the former being the principal segment. The aggregated workplace furnishings segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. The residential building products segment manufactures and markets a full array of gas, wood, electric, and pellet fueled fireplaces, inserts, stoves, facings, and accessories. For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated general corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation's corporate operations. 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, IT infrastructure, 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.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)3 Months Ended
Apr. 03, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of RevenueRevenue from contracts with customers disaggregated by product category is as follows (in thousands): Three Months Ended April 3, March 28, Systems and storage $ 182,859 $ 204,021 Seating 101,650 115,872 Other 18,239 18,493 Total workplace furnishings 302,748 338,386 Residential building products 181,545 130,318 Net sales $ 484,293 $ 468,704
Contract with Customer, Asset and LiabilityContract assets and contract liabilities were as follows (in thousands): April 3, January 2, Trade receivables (1) $ 198,039 $ 207,971 Contract assets (current) (2) $ 761 $ 761 Contract assets (long-term) (3) $ 2,174 $ 2,486 Contract liabilities (4) $ 47,022 $ 53,070 The index below indicates the line item in the Condensed Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the three months ended April 3, 2021, were as follows (in thousands): Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of contract assets to contra-revenue $ (312) $ — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (47,347) Contract liabilities paid — 54,735 Cash received in advance and not recognized as revenue — (51,014) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 49,674 Net change $ (312) $ 6,048 Changes in contract asset and contract liability balances during the three months ended March 28, 2020 were as follows (in thousands): Contract assets increase (decrease) Contract liabilities (increase) decrease Reclassification of contract assets to contra-revenue $ (164) $ — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (24,610) Contract liabilities paid — 39,064 Cash received in advance and not recognized as revenue — (19,220) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 21,710 Net change $ (164) $ 16,944

Acquisitions (Tables)

Acquisitions (Tables)3 Months Ended
Apr. 03, 2021
Asset Acquisition [Abstract]
Schedule of Asset AcquisitionThe provisional DPG purchase price allocation and estimated amortization periods of identified intangible assets as of the date of acquisition is as follows (dollars in thousands): Fair Value Weighted Average Amortization Period Inventories $ 1,058 Prepaid expenses and other current assets 381 Accounts payable and accrued expenses (8,299) Goodwill 39,800 Customer lists 9,700 6 years Software 3,800 4 years Trade names 3,400 10 years Other intangible assets 200 3 years Total net assets $ 50,040

Inventories (Tables)

Inventories (Tables)3 Months Ended
Apr. 03, 2021
Inventory Disclosure [Abstract]
Schedule of InventoriesInventories included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands): April 3, January 2, Finished products $ 113,531 $ 98,527 Materials and work in process 71,625 70,264 Last-in, first-out ("LIFO") allowance (30,980) (30,980) Total inventories $ 154,176 $ 137,811 Inventory valued by the LIFO costing method 77 % 75 %

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)3 Months Ended
Apr. 03, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and GoodwillGoodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following (in thousands): April 3, January 2, Goodwill $ 293,684 $ 292,434 Definite-lived intangible assets 135,237 139,863 Indefinite-lived intangible assets 26,565 26,599 Total goodwill and other intangible assets $ 455,486 $ 458,896
Schedule of GoodwillThe changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands): Workplace Furnishings Residential Building Products Total Balance as of January 2, 2021 Goodwill $ 168,477 $ 196,976 $ 365,453 Accumulated impairment losses (72,876) (143) (73,019) Net goodwill balance as of January 2, 2021 95,601 196,833 292,434 Goodwill acquired — 1,250 1,250 Balance as of April 3, 2021 Goodwill 168,477 198,226 366,703 Accumulated impairment losses (72,876) (143) (73,019) Net goodwill balance as of April 3, 2021 $ 95,601 $ 198,083 $ 293,684
Schedule of Finite-Lived Intangible Assets by Major ClassThe table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands): April 3, 2021 January 2, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Software $ 184,752 $ 84,205 $ 100,547 $ 182,127 $ 78,619 $ 103,508 Trademarks and trade names 9,964 3,764 6,200 9,964 3,546 6,418 Customer lists and other 90,910 62,420 28,490 91,002 61,065 29,937 Net definite-lived intangible assets $ 285,626 $ 150,389 $ 135,237 $ 283,093 $ 143,230 $ 139,863
Finite-lived Intangible Assets Amortization ExpenseAmortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows (in thousands): Three Months Ended April 3, March 28, Capitalized software $ 5,348 $ 4,550 Other definite-lived intangibles $ 1,899 $ 1,523
Schedule of Expected Amortization Expense TableBased on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five years is as follows (in millions): 2021 2022 2023 2024 2025 Amortization expense $ 28.7 $ 25.1 $ 21.0 $ 18.0 $ 16.3
Schedule of Indefinite Lived Intangible Assets and GoodwillThese indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets (in thousands): April 3, January 2, Trademarks and trade names $ 26,565 $ 26,599

Product Warranties (Tables)

Product Warranties (Tables)3 Months Ended
Apr. 03, 2021
Product Warranties Disclosures [Abstract]
Activity Associated with Warranty ObligationsActivity associated with warranty obligations was as follows (in thousands): Three Months Ended April 3, March 28, Balance at beginning of period $ 16,109 $ 15,865 Accruals for warranties issued during period 2,370 3,224 Adjustments related to pre-existing warranties — 514 Settlements made during the period (2,192) (3,382) Balance at end of period $ 16,287 $ 16,221 April 3, January 2, Current - in the next twelve months $ 5,942 $ 5,918 Long-term - beyond one year 10,345 10,191 Total $ 16,287 $ 16,109

Long-Term Debt (Tables)

Long-Term Debt (Tables)3 Months Ended
Apr. 03, 2021
Debt Disclosure [Abstract]
Schedule of DebtLong-term debt is as follows (in thousands): April 3, January 2, Revolving credit facility with interest at a variable rate (April 3, 2021 - 1.1%; January 2, 2021 - 1.2%) $ 75,000 $ 75,000 Fixed rate notes due in 2025 with an interest rate of 4.22% 50,000 50,000 Fixed rate notes due in 2028 with an interest rate of 4.40% 50,000 50,000 Other amounts 1,261 841 Deferred debt issuance costs (455) (476) Total debt 175,806 175,365 Less: Current maturities of long-term debt 1,261 841 Long-term debt $ 174,545 $ 174,524

Income Taxes (Tables)

Income Taxes (Tables)3 Months Ended
Apr. 03, 2021
Income Tax Disclosure [Abstract]
Schedule of Income Tax ProvisionThe following table summarizes the Corporation's income tax provision (dollars in thousands): Three Months Ended April 3, March 28, Income (loss) before income taxes $ 20,845 $ (25,539) Income taxes $ 5,827 $ (1,643) Effective tax rate 28.0 % 6.4 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Apr. 03, 2021
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair ValueFinancial instruments measured at fair value were as follows (in thousands): Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance as of April 3, 2021 Cash and cash equivalents (including money market funds) (1) $ 94,281 $ 94,281 $ — $ — Government securities (2) $ 6,315 $ — $ 6,315 $ — Corporate bonds (2) $ 7,227 $ — $ 7,227 $ — Derivative financial instruments - liability (3) $ 1,953 $ — $ 1,953 $ — Deferred stock-based compensation (4) $ 7,607 $ — $ 7,607 $ — Balance as of January 2, 2021 Cash and cash equivalents (including money market funds) (1) $ 116,120 $ 116,120 $ — $ — Government securities (2) $ 6,371 $ — $ 6,371 $ — Corporate bonds (2) $ 7,228 $ — $ 7,228 $ — Derivative financial instruments - liability (3) $ 2,328 $ — $ 2,328 $ — Deferred stock-based compensation (4) $ 7,207 $ — $ 7,207 $ — The index below indicates the line item in the Condensed Consolidated Balance Sheets where the financial instruments are reported: (1) "Cash and cash equivalents" (2) Current portion - "Short-term investments"; Long-term portion - "Other Assets" (3) Current portion - "Accounts payable and accrued expenses"; Long-term portion - "Other Long-Term Liabilities" (4) Current portion - "Current maturities of other long-term obligations"; Long-term portion - "Other Long-Term Liabilities"

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables)3 Months Ended
Apr. 03, 2021
Equity [Abstract]
Schedule of Components of Accumulated Other Comprehensive Income and Changes in Accumulated Other Comprehensive Income, Net of TaxThe following tables summarize the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable (in thousands): Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance as of January 2, 2021 $ (1,071) $ 360 $ (6,682) $ (1,760) $ (9,153) Other comprehensive income (loss) before reclassifications (132) (127) — 130 (129) Tax (expense) or benefit — 27 — (31) (4) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — 164 164 Balance as of April 3, 2021 $ (1,203) $ 260 $ (6,682) $ (1,497) $ (9,122) Amounts in parentheses indicate reductions to equity. Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance as of December 28, 2019 $ (2,912) $ 95 $ (5,762) $ 506 $ (8,073) Other comprehensive income (loss) before reclassifications (600) 75 — (2,756) (3,281) Tax (expense) or benefit — (16) — 648 632 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — (108) (108) Balance as of March 28, 2020 $ (3,512) $ 154 $ (5,762) $ (1,710) $ (10,830) Amounts in parentheses indicate reductions to equity.
Schedule of Reclassification from Accumulated Other Comprehensive IncomeThe following table details the reclassifications from accumulated other comprehensive income (loss) (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 3, March 28, Derivative financial instruments Interest rate swap Interest expense, net $ (214) $ 114 Income taxes 50 (6) Net of tax $ (164) $ 108 Amounts in parentheses indicate reductions to profit.
Schedule of Dividends Declared and Paid Per ShareThe Corporation declared and paid cash dividends per common share as follows (in dollars): Three Months Ended April 3, March 28, Dividends per common share $ 0.305 $ 0.305
Schedule of Share RepurchasesThe following table summarizes shares repurchased and settled by the Corporation (in thousands, except share and per share data): Three Months Ended April 3, March 28, Shares repurchased — 186,700 Average price per share $ — $ 30.75 Cash purchase price $ — $ (5,741) Purchases unsettled as of quarter end — 276 Prior year purchases settled in current year — (374) Shares repurchased per cash flow $ — $ (5,839)

Earnings Per Share (Tables)

Earnings Per Share (Tables)3 Months Ended
Apr. 03, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Basic and DilutedThe following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS") (in thousands, except per share data): Three Months Ended April 3, March 28, Numerator: Numerator for both basic and diluted EPS attributable to HNI Corporation net income (loss) $ 15,019 $ (23,895) Denominators: Denominator for basic EPS weighted-average common shares outstanding 43,163 42,628 Potentially dilutive shares from stock-based compensation plans 421 — Denominator for diluted EPS 43,584 42,628 Earnings per share – basic $ 0.35 $ (0.56) Earnings per share – diluted $ 0.34 $ (0.56)
Schedule of Weighted Average Number of SharesThe weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive (in thousands): Three Months Ended April 3, March 28, Common stock equivalents excluded because their inclusion would be anti-dilutive 2,112 2,841

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)3 Months Ended
Apr. 03, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Stock Based Compensation ExpenseThe following table summarizes expense associated with these plans (in thousands): Three Months Ended April 3, March 28, Compensation cost $ 5,220 $ 4,358
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in PeriodThe units granted by the Corporation had fair values as follows (in thousands): Three Months Ended April 3, March 28, Restricted stock units $ 15,707 $ 5,777 Performance stock units $ 6,013 $ 5,777
Schedule of Unrecognized Compensation Cost, Nonvested AwardsThe following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and stock units as of April 3, 2021: Unrecognized Compensation Expense Weighted-Average Remaining Non-vested stock options $ 1,037 0.9 Non-vested restricted stock units $ 10,334 1.3 Non-vested performance stock units $ 6,761 1.4

Reportable Segment Information

Reportable Segment Information (Tables)3 Months Ended
Apr. 03, 2021
Segment Reporting [Abstract]
Reportable Segment DataReportable segment data reconciled to the Corporation's condensed consolidated financial statements was as follows (in thousands): Three Months Ended April 3, March 28, Net Sales: Workplace furnishings $ 302,748 $ 338,386 Residential building products 181,545 130,318 Total $ 484,293 $ 468,704 Income (Loss) Before Income Taxes: Workplace furnishings $ (3,071) $ (33,231) Residential building products 39,849 20,671 General corporate (14,178) (11,168) Operating income 22,600 (23,728) Interest expense, net 1,755 1,811 Total $ 20,845 $ (25,539) Depreciation and Amortization Expense: Workplace furnishings $ 11,984 $ 11,332 Residential building products 2,410 2,306 General corporate 6,069 5,849 Total $ 20,463 $ 19,487 Capital Expenditures (including capitalized software): Workplace furnishings $ 10,487 $ 7,101 Residential building products 4,710 2,973 General corporate 3,767 3,085 Total $ 18,964 $ 13,159 As of As of Identifiable Assets: Workplace furnishings $ 757,753 $ 762,780 Residential building products 390,520 381,550 General corporate 257,308 273,702 Total $ 1,405,581 $ 1,418,032

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers $ 484,293 $ 468,704
Workplace furnishings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers302,748 338,386
Workplace furnishings | Systems and storage
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers182,859 204,021
Workplace furnishings | Seating
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers101,650 115,872
Workplace furnishings | Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers18,239 18,493
Residential building products
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers $ 181,545 $ 130,318

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Revenue from Contract with Customer [Abstract]
Trade receivables $ 198,039 $ 207,971
Contract assets (current)761 761
Contract assets (long-term)2,174 2,486
Contract liabilities $ 47,022 $ 53,070

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Change in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Contract assets increase (decrease)
Reclassification of contract assets to contra-revenue $ (312) $ (164)
Net change(312)(164)
Contract liabilities (increase) decrease
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied(47,347)(24,610)
Contract liabilities paid54,735 39,064
Cash received in advance and not recognized as revenue(51,014)(19,220)
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied49,674 21,710
Net change $ 6,048 $ 16,944

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Narrative (Details) $ in Millions3 Months Ended
Apr. 03, 2021USD ($)
Revenue from Contract with Customer [Abstract]
Revenue recognized $ 21.1
Payment terms30 days

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in ThousandsDec. 31, 2020Apr. 03, 2021Jan. 02, 2021
Schedule Of Asset Acquisition [Line Items]
Goodwill $ 293,684 $ 292,434
Assets of Residential Building Products Companies
Schedule Of Asset Acquisition [Line Items]
Payments for asset acquisitions1,600
Goodwill $ 1,300
Design Public Group
Schedule Of Asset Acquisition [Line Items]
Goodwill $ 39,800
Asset acquisition $ 50,040

Acquisitions - Purchase Price A

Acquisitions - Purchase Price Allocation and Estimated Amortization (Details) - USD ($) $ in ThousandsDec. 31, 2020Apr. 03, 2021Jan. 02, 2021
Schedule Of Asset Acquisition [Line Items]
Goodwill $ 293,684 $ 292,434
Design Public Group
Schedule Of Asset Acquisition [Line Items]
Inventories $ 1,058
Prepaid expenses and other current assets381
Accounts payable and accrued expenses(8,299)
Goodwill39,800
Total net assets50,040
Design Public Group | Customer lists
Schedule Of Asset Acquisition [Line Items]
Intangible assets $ 9,700
Weighted Average Amortization Period6 years
Design Public Group | Software
Schedule Of Asset Acquisition [Line Items]
Intangible assets $ 3,800
Weighted Average Amortization Period4 years
Design Public Group | Trade names
Schedule Of Asset Acquisition [Line Items]
Intangible assets $ 3,400
Weighted Average Amortization Period10 years
Design Public Group | Other intangible assets
Schedule Of Asset Acquisition [Line Items]
Intangible assets $ 200
Weighted Average Amortization Period3 years

Inventories (Details)

Inventories (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Inventories
Finished products $ 113,531 $ 98,527
Materials and work in process71,625 70,264
Last-in, first-out ("LIFO") allowance(30,980)(30,980)
Total inventories $ 154,176 $ 137,811
Inventory valued by the LIFO costing method77.00%75.00%

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill $ 293,684 $ 292,434
Definite-lived intangible assets135,237 139,863
Indefinite-lived intangible assets26,565 26,599
Goodwill and Other Intangible Assets $ 455,486 $ 458,896

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands3 Months Ended
Apr. 03, 2021USD ($)
Goodwill [Roll Forward]
Goodwill, gross, beginning balance $ 365,453
Accumulated impairment losses, beginning balance(73,019)
Goodwill, net, beginning balance292,434
Goodwill acquired1,250
Goodwill, gross, ending balance366,703
Accumulated impairment losses, ending balance(73,019)
Goodwill, net, ending balance293,684
Workplace furnishings
Goodwill [Roll Forward]
Goodwill, gross, beginning balance168,477
Accumulated impairment losses, beginning balance(72,876)
Goodwill, net, beginning balance95,601
Goodwill acquired0
Goodwill, gross, ending balance168,477
Accumulated impairment losses, ending balance(72,876)
Goodwill, net, ending balance95,601
Residential building products
Goodwill [Roll Forward]
Goodwill, gross, beginning balance196,976
Accumulated impairment losses, beginning balance(143)
Goodwill, net, beginning balance196,833
Goodwill acquired1,250
Goodwill, gross, ending balance198,226
Accumulated impairment losses, ending balance(143)
Goodwill, net, ending balance $ 198,083

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross $ 285,626 $ 283,093
Accumulated Amortization150,389 143,230
Net135,237 139,863
Software
Finite-Lived Intangible Assets [Line Items]
Gross184,752 182,127
Accumulated Amortization84,205 78,619
Net100,547 103,508
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross9,964 9,964
Accumulated Amortization3,764 3,546
Net6,200 6,418
Customer lists and other
Finite-Lived Intangible Assets [Line Items]
Gross90,910 91,002
Accumulated Amortization62,420 61,065
Net $ 28,490 $ 29,937

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software $ 5,348 $ 4,550
Other definite-lived intangibles $ 1,899 $ 1,523

Goodwill and Other Intangible_7

Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in MillionsApr. 03, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021 $ 28.7
202225.1
202321
202418
2025 $ 16.3

Goodwill and Other Intangible_8

Goodwill and Other Intangible Assets - Indefinite Lived Intangible Assets (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets $ 26,565 $ 26,599
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets $ 26,565 $ 26,599

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Product Warranty Accrual [Roll Forward]
Balance at beginning of period $ 16,109 $ 15,865
Accruals for warranties issued during period2,370 3,224
Adjustments related to pre-existing warranties0 514
Settlements made during the period(2,192)(3,382)
Balance at end of period $ 16,287 $ 16,221

Product Warranties - Current an

Product Warranties - Current and Long Term Warranty (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021Mar. 28, 2020Dec. 28, 2019
Product Warranties Disclosures [Abstract]
Current - in the next twelve months $ 5,942 $ 5,918
Long-term - beyond one year10,345 10,191
Total $ 16,287 $ 16,109 $ 16,221 $ 15,865

Long-Term Debt Schedule of Long

Long-Term Debt Schedule of Long-Term Debt (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021May 31, 2018
Debt Instrument [Line Items]
Total debt $ 175,806 $ 175,365
Deferred debt issuance costs(455)(476)
Current maturities of long-term debt1,261 841
Long-term debt $ 174,545 $ 174,524
Fixed rate notes due in 2025 with an interest rate of 4.22%
Debt Instrument [Line Items]
Interest rate4.22%4.22%
Fixed rate notes due in 2028 with an interest rate of 4.40%
Debt Instrument [Line Items]
Interest rate4.40%4.40%
Revolving credit facility with interest at a variable rate (April 3, 2021 - 1.1%; January 2, 2021 - 1.2%)
Debt Instrument [Line Items]
Interest rate1.10%1.20%
Total debt $ 75,000 $ 75,000
Fixed rate notes due in 2025 with an interest rate of 4.22%
Debt Instrument [Line Items]
Total debt50,000 50,000
Fixed rate notes due in 2028 with an interest rate of 4.40%
Debt Instrument [Line Items]
Total debt50,000 50,000
Other amounts
Debt Instrument [Line Items]
Total debt $ 1,261 $ 841

Long-Term Debt Narrative (Detai

Long-Term Debt Narrative (Details) - USD ($)May 31, 2018Apr. 03, 2021Jan. 02, 2021
Debt Instrument [Line Items]
Long-term debt obligations $ 175,806,000 $ 175,365,000
Deferred debt issuance costs, current400,000
Deferred debt issuance costs, noncurrent400,000
Revolving credit facility with interest at a variable rate (April 3, 2021 - 1.1%; January 2, 2021 - 1.2%)
Debt Instrument [Line Items]
Long-term line of credit outstanding75,000,000
Line of credit maximum borrowing capacity450,000,000
Line of credit remaining borrowing capacity $ 375,000,000
Ratio of interest coverage to earnings for the last four fiscal quarters4
Ratio of leverage to earnings for the last four fiscal quarters3.5
Notes Payable to Banks
Debt Instrument [Line Items]
Long-term debt obligations $ 75,000,000
Private Placement
Debt Instrument [Line Items]
Fair value of debt obligations116,000,000
Deferred debt issuance costs, noncurrent $ 500,000
Borrowings $ 100,000,000
Fixed rate notes due in 2025 with an interest rate of 4.22%
Debt Instrument [Line Items]
Borrowings $ 50,000,000
Note term7 years
Interest rate4.22%4.22%
Fixed rate notes due in 2028 with an interest rate of 4.40%
Debt Instrument [Line Items]
Borrowings $ 50,000,000
Note term10 years
Interest rate4.40%4.40%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Income Tax Disclosure [Abstract]
Income (loss) before income taxes $ 20,845 $ (25,539)
Income taxes $ 5,827 $ (1,643)
Effective tax rate28.00%6.40%

Fair Value Measurements - Asset

Fair Value Measurements - Assets (Details) - USD ($) $ in ThousandsApr. 03, 2021Jan. 02, 2021
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents (including money market funds) $ 94,281 $ 116,120
Fair value, measurements, recurring
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents (including money market funds)94,281 116,120
Derivative financial instruments - liability1,953 2,328
Deferred stock-based compensation7,607 7,207
Fair value, measurements, recurring | Quoted prices in active markets for identical assets (Level 1)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents (including money market funds)94,281 116,120
Derivative financial instruments - liability0 0
Deferred stock-based compensation0 0
Fair value, measurements, recurring | Significant other observable inputs (Level 2)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents (including money market funds)0 0
Derivative financial instruments - liability1,953 2,328
Deferred stock-based compensation7,607 7,207
Fair value, measurements, recurring | Significant unobservable inputs (Level 3)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents (including money market funds)0 0
Derivative financial instruments - liability0 0
Deferred stock-based compensation0 0
Fair value, measurements, recurring | Government securities
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities6,315 6,371
Fair value, measurements, recurring | 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 debt securities0 0
Fair value, measurements, recurring | Government securities | Significant other observable inputs (Level 2)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities6,315 6,371
Fair value, measurements, recurring | Government securities | Significant unobservable inputs (Level 3)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities0 0
Fair value, measurements, recurring | Corporate bonds
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities7,227 7,228
Fair value, measurements, recurring | 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 debt securities0 0
Fair value, measurements, recurring | Corporate bonds | Significant other observable inputs (Level 2)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities7,227 7,228
Fair value, measurements, recurring | Corporate bonds | Significant unobservable inputs (Level 3)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities $ 0 $ 0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Components (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance $ 590,745 $ 584,368
Other comprehensive income (loss) before reclassifications(129)(3,281)
Tax (expense) or benefit(4)632
Amounts reclassified from accumulated other comprehensive income (loss), net of tax164 (108)
Ending balance617,761 551,655
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(1,071)(2,912)
Other comprehensive income (loss) before reclassifications(132)(600)
Tax (expense) or benefit0 0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax0 0
Ending balance(1,203)(3,512)
Unrealized Gains (Losses) on Debt Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance360 95
Other comprehensive income (loss) before reclassifications(127)75
Tax (expense) or benefit27 (16)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax0 0
Ending balance260 154
Pension and Post-retirement Liabilities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(6,682)(5,762)
Other comprehensive income (loss) before reclassifications0 0
Tax (expense) or benefit0 0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax0 0
Ending balance(6,682)(5,762)
Derivative Financial Instruments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(1,760)506
Other comprehensive income (loss) before reclassifications130 (2,756)
Tax (expense) or benefit(31)648
Amounts reclassified from accumulated other comprehensive income (loss), net of tax164 (108)
Ending balance(1,497)(1,710)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance(9,153)(8,073)
Ending balance $ (9,122) $ (10,830)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Narrative (Details) - USD ($)Apr. 03, 2021Jan. 02, 2021Dec. 28, 2019
Class of Stock [Line Items]
Accumulated other comprehensive income (loss) $ (9,122,000) $ (9,153,000)
Common Stock
Class of Stock [Line Items]
Remaining authorized repurchase amount158,300,000
Interest rate swap
Class of Stock [Line Items]
Derivative, notional amount $ 75,000,000
Derivative, fixed interest rate1.42%
Derivative liability2,000,000
Accumulated other comprehensive income (loss) $ (1,500,000)

Accumulated Other Comprehensi_5

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Reclassification (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes $ (5,827) $ 1,643
Net of tax15,019 (23,895)
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, net(214)114
Income taxes50 (6)
Net of tax $ (164) $ 108

Accumulated Other Comprehensi_6

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Dividend (Details) - $ / shares3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Equity [Abstract]
Dividends per common share (in dollars per share) $ 0.305 $ 0.305
Dividends per common share (in dollars per share) $ 0.305 $ 0.305

Accumulated Other Comprehensi_7

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Stock Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Average price per share (in dollars per share) $ 0 $ 30.75
Shares repurchased per cash flow $ 0 $ (5,839)
Common Stock
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares repurchased (in shares)0 186,700
Cash purchase price $ 0 $ (5,741)
Purchases unsettled as of quarter end0 276
Prior year purchases settled in current year0 (374)
Shares repurchased per cash flow $ 0 $ (5,839)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Numerator:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income (loss) $ 15,019 $ (23,895)
Denominators:
Denominator for basic EPS weighted-average common shares outstanding (in shares)43,163 42,628
Potentially dilutive shares from stock-based compensation plans (in shares)421 0
Denominator for diluted EPS (in shares)43,584 42,628
Earnings per share - basic (in dollars per share) $ 0.35 $ (0.56)
Earnings per share - diluted (in dollars per share) $ 0.34 $ (0.56)

Earnings Per Share Antidilutive

Earnings Per Share Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Common stock equivalents excluded because their inclusion would be anti-dilutive
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded because their inclusion would be anti-dilutive (in shares)2,112 2,841

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands3 Months Ended
Apr. 03, 2021Mar. 28, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost $ 5,220 $ 4,358
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation Expense $ 1,037
Weighted-Average Remaining Service Period (years)10 months 24 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value $ 15,707 5,777
Unrecognized Compensation Expense $ 10,334
Weighted-Average Remaining Service Period (years)1 year 3 months 18 days
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value $ 6,013 $ 5,777
Unrecognized Compensation Expense $ 6,761
Weighted-Average Remaining Service Period (years)1 year 4 months 24 days

Guarantees, Commitments and C_2

Guarantees, Commitments and Contingencies (Details)Apr. 03, 2021USD ($)
Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit $ 24,000,000
Trade Letters Of Credit And Bankers Acceptances
Line of Credit Facility [Line Items]
Letters of credit $ 0

Reportable Segment Informatio_2

Reportable Segment Information (Details) $ in Thousands3 Months Ended
Apr. 03, 2021USD ($)segmentMar. 28, 2020USD ($)Jan. 02, 2021USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment2
Net sales $ 484,293 $ 468,704
Operating income22,600 (23,728)
Interest expense, net1,755 1,811
Income (loss) before income taxes20,845 (25,539)
Depreciation and amortization20,463 19,487
Capital expenditures (including capitalized software)18,964 13,159
Identifiable assets1,405,581 $ 1,418,032
Workplace furnishings
Segment Reporting Information [Line Items]
Net sales302,748 338,386
Residential building products
Segment Reporting Information [Line Items]
Net sales181,545 130,318
Operating segments | Workplace furnishings
Segment Reporting Information [Line Items]
Net sales302,748 338,386
Operating income(3,071)(33,231)
Depreciation and amortization11,984 11,332
Capital expenditures (including capitalized software)10,487 7,101
Identifiable assets757,753 762,780
Operating segments | Residential building products
Segment Reporting Information [Line Items]
Net sales181,545 130,318
Operating income39,849 20,671
Depreciation and amortization2,410 2,306
Capital expenditures (including capitalized software)4,710 2,973
Identifiable assets390,520 381,550
General corporate
Segment Reporting Information [Line Items]
Operating income(14,178)(11,168)
Depreciation and amortization6,069 5,849
Capital expenditures (including capitalized software)3,767 $ 3,085
Identifiable assets $ 257,308 $ 273,702

Uncategorized Items - hni-20210

LabelElementValue
Accounting Standards Update [Extensible List]us-gaap_AccountingStandardsUpdateExtensibleListus-gaap:AccountingStandardsUpdate201602Member