Cover
Cover | 9 Months Ended |
Oct. 01, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Oct. 01, 2022 |
Document Transition Report | false |
Entity File Number | 1-14225 |
Entity Registrant Name | HNI Corporation |
Entity Incorporation, State or Country Code | IA |
Entity Tax Identification Number | 42-0617510 |
Entity Address, Address Line One | 600 East Second Street |
Entity Address, Address Line Two | P.O. Box 1109 |
Entity Address, City or Town | Muscatine |
Entity Address, State or Province | IA |
Entity Address, Postal Zip Code | 52761-0071 |
City Area Code | 563 |
Local Phone Number | 272-7400 |
Title of 12(b) Security | Common Stock |
Trading Symbol | HNI |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 41,363,775 |
Entity Central Index Key | 0000048287 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 598.8 | $ 586.7 | $ 1,792.9 | $ 1,581.5 |
Cost of sales | 389.3 | 391.4 | 1,165.9 | 1,018.3 |
Gross profit | 209.5 | 195.4 | 627 | 563.2 |
Selling and administrative expenses | 178.2 | 169.1 | 544.3 | 489.6 |
Gain on sale of subsidiary | (50.6) | 0 | (50.6) | 0 |
Impairment charges | 0 | 0 | 1 | 0 |
Operating income | 81.9 | 26.2 | 132.2 | 73.5 |
Interest expense, net | 2.4 | 1.9 | 6.5 | 5.5 |
Income before income taxes | 79.5 | 24.4 | 125.8 | 68.1 |
Income taxes | 16.4 | 5.2 | 18.2 | 16.5 |
Net income | 63.1 | 19.2 | 107.6 | 51.6 |
Less: Net income (loss) attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributable to HNI Corporation | $ 63.1 | $ 19.2 | $ 107.6 | $ 51.6 |
Average number of common shares outstanding – basic (in shares) | 41.3 | 43.8 | 41.8 | 43.6 |
Net income attributable to HNI Corporation per common share – basic (in dollars per share) | $ 1.53 | $ 0.44 | $ 2.57 | $ 1.18 |
Average number of common shares outstanding – diluted (in shares) | 41.8 | 44.3 | 42.3 | 44 |
Net income attributable to HNI Corporation per common share – diluted (in dollars per share) | $ 1.51 | $ 0.43 | $ 2.54 | $ 1.17 |
Foreign currency translation adjustments | $ (3.7) | $ 0 | $ (5.5) | $ 0.1 |
Change in unrealized gains (losses) on marketable securities, net of tax | (0.3) | 0 | (0.8) | (0.2) |
Change in derivative financial instruments, net of tax | (0.1) | 0.2 | 0.9 | 0.6 |
Other comprehensive income (loss), net of tax | (4) | 0.2 | (5.4) | 0.5 |
Comprehensive income | 59.1 | 19.3 | 102.2 | 52.1 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to HNI Corporation | $ 59.1 | $ 19.3 | $ 102.2 | $ 52.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 21.1 | $ 52.3 |
Short-term investments | 2 | 1.4 |
Receivables | 243.8 | 240 |
Allowance for doubtful accounts | (2.4) | (2.8) |
Inventories, net | 222.2 | 181.6 |
Prepaid expenses and other current assets | 53.4 | 51.1 |
Total Current Assets | 540 | 523.5 |
Property, Plant, and Equipment: | ||
Land and land improvements | 31 | 30.9 |
Buildings | 292.3 | 294.5 |
Machinery and equipment | 589.3 | 593.6 |
Construction in progress | 31.9 | 29.7 |
Property plant and equipment | 944.5 | 948.7 |
Less: Accumulated depreciation | (595.4) | (581.9) |
Net Property, Plant, and Equipment | 349.1 | 366.8 |
Right-of-use Finance Leases | 11 | 10.2 |
Right-of-use Operating Leases | 92.3 | 82.9 |
Goodwill and Other Intangible Assets, Net | 451.9 | 471.5 |
Other Assets | 54.3 | 43.1 |
Total Assets | 1,498.6 | 1,497.9 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 435 | 473.8 |
Current maturities of debt | 1.2 | 3.2 |
Current maturities of other long-term obligations | 2 | 3.9 |
Current lease obligations - Finance | 3.3 | 2.8 |
Current lease obligations - Operating | 18.8 | 22.8 |
Total Current Liabilities | 460.4 | 506.4 |
Long-Term Debt | 199.7 | 174.6 |
Long-Term Lease Obligations - Finance | 7.7 | 7.4 |
Long-Term Lease Obligations - Operating | 82.3 | 63.8 |
Other Long-Term Liabilities | 77.5 | 80.7 |
Deferred Income Taxes | 64.6 | 75 |
Total Liabilities | 892.2 | 907.9 |
Equity: | ||
HNI Corporation shareholders' equity | 606.1 | 589.6 |
Non-controlling interest | 0.3 | 0.3 |
Total Equity | 606.4 | 590 |
Total Liabilities and Equity | $ 1,498.6 | $ 1,497.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Dividends payable | Cash dividends | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Dividends payable | Retained Earnings Cash dividends | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance at Jan. 02, 2021 | $ 590.7 | $ 42.9 | $ 38.7 | $ 518 | $ (9.2) | $ 0.3 | ||||
Comprehensive income: | ||||||||||
Net income (loss) | 51.6 | 51.6 | 0 | |||||||
Other comprehensive income (loss), net of tax | 0.5 | 0.5 | ||||||||
Dividends payable | $ (0.7) | $ (40.4) | $ (0.7) | $ (40.4) | ||||||
Common shares – treasury: | ||||||||||
Shares purchased | (19.8) | (0.5) | (19.3) | |||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | 47.6 | 1.1 | 46.5 | |||||||
Ending balance at Oct. 02, 2021 | 629.7 | 43.6 | 65.9 | 528.6 | (8.6) | 0.3 | ||||
Beginning balance at Jul. 03, 2021 | 634.8 | 43.9 | 76.3 | 523.1 | (8.8) | 0.3 | ||||
Comprehensive income: | ||||||||||
Net income (loss) | 19.2 | 19.2 | 0 | |||||||
Other comprehensive income (loss), net of tax | 0.2 | 0.2 | ||||||||
Dividends payable | (0.1) | (13.6) | (0.1) | (13.6) | ||||||
Common shares – treasury: | ||||||||||
Shares purchased | (13.1) | (0.3) | (12.7) | |||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | 2.3 | 0 | 2.3 | |||||||
Ending balance at Oct. 02, 2021 | 629.7 | 43.6 | 65.9 | 528.6 | (8.6) | 0.3 | ||||
Beginning balance at Jan. 01, 2022 | 590 | 42.6 | 39.2 | 514.6 | (6.8) | 0.3 | ||||
Comprehensive income: | ||||||||||
Net income (loss) | 107.6 | 107.6 | 0 | |||||||
Other comprehensive income (loss), net of tax | (5.4) | (5.4) | ||||||||
Dividends payable | (0.3) | (39.7) | (0.3) | (39.7) | ||||||
Common shares – treasury: | ||||||||||
Shares purchased | (63.9) | (1.7) | (11.1) | (51.1) | ||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | 18.1 | 0.5 | 17.7 | |||||||
Ending balance at Oct. 01, 2022 | 606.4 | 41.4 | 45.8 | 531.1 | (12.2) | 0.3 | ||||
Beginning balance at Jul. 02, 2022 | 562 | 41.3 | 47.4 | 481.1 | (8.1) | 0.3 | ||||
Comprehensive income: | ||||||||||
Net income (loss) | 63.1 | 63.1 | 0 | |||||||
Other comprehensive income (loss), net of tax | (4) | (4) | ||||||||
Dividends payable | $ 0.2 | $ 0.2 | ||||||||
Dividends payable | $ (13.2) | $ (13.2) | ||||||||
Common shares – treasury: | ||||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | (1.6) | (1.6) | ||||||||
Ending balance at Oct. 01, 2022 | $ 606.4 | $ 41.4 | $ 45.8 | $ 531.1 | $ (12.2) | $ 0.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends (in dollars per share) | $ 0.320 | $ 0.310 | $ 0.950 | $ 0.925 |
Cash dividends (in dollars per share) | $ 0.320 | $ 0.310 | $ 0.950 | $ 0.925 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Net Cash Flows From (To) Operating Activities: | ||
Net income | $ 107.6 | $ 51.6 |
Non-cash items included in net income: | ||
Depreciation and amortization | 63.5 | 62 |
Other post-retirement and post-employment benefits | 1 | 1 |
Stock-based compensation | 6.4 | 9.5 |
Reduction in carrying amount of right-of-use assets | 19.7 | 19 |
Deferred income taxes | (10.4) | (2.1) |
Gain on sale of subsidiary | (50.6) | 0 |
Other – net | (0.4) | 2.6 |
Net decrease in cash from operating assets and liabilities | (99.3) | (64.1) |
Increase (decrease) in other liabilities | (3.5) | 8.9 |
Net cash flows from (to) operating activities | 33.9 | 88.5 |
Net Cash Flows From (To) Investing Activities: | ||
Capital expenditures | (41.7) | (38.2) |
Proceeds from sale of property, plant, and equipment | 0 | 0.2 |
Capitalized software | (7) | (9.6) |
Acquisition spending, net of cash acquired | (9.2) | (1.5) |
Purchase of investments | (2.3) | (3.3) |
Sales or maturities of investments | 1.9 | 3.2 |
Net proceeds from sale of subsidiary | 71.4 | 0 |
Net cash flows from (to) investing activities | 13.2 | (49.2) |
Net Cash Flows From (To) Financing Activities: | ||
Payments of debt | (298.5) | (1.8) |
Proceeds from debt | 321.6 | 4.3 |
Dividends paid | (39.9) | (40.4) |
Purchase of HNI Corporation common stock | (65.2) | (18.5) |
Proceeds from sales of HNI Corporation common stock | 4 | 29.9 |
Other – net | (0.4) | (2.6) |
Net cash flows from (to) financing activities | (78.3) | (29) |
Net increase (decrease) in cash and cash equivalents | (31.2) | 10.3 |
Cash and cash equivalents at beginning of period | 52.3 | 116.1 |
Cash and cash equivalents at end of period | $ 21.1 | $ 126.4 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 01, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | Basis 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 1, 2022, consolidated balance sheet included in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the nine-month period ended October 1, 2022, are not necessarily indicative of the results expected for the fiscal year ending December 31, 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 1, 2022. Certain reclassifications have been made within the interim financial information to conform to the current presentation. All dollar amounts presented are in millions, except per share data or where otherwise indicated. Amounts may not sum due to rounding. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Oct. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue Revenue from contracts with customers disaggregated by product category is as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Systems and storage $ 224.9 $ 227.8 $ 673.9 $ 611.1 Seating 114.8 134.2 354.7 349.6 Other 35.5 31.1 106.4 79.4 Total workplace furnishings 375.2 393.1 1,135.0 1,040.0 Residential building products 223.6 193.6 657.9 541.5 Net sales $ 598.8 $ 586.7 $ 1,792.9 $ 1,581.5 Sales by product category are subject to similar economic factors and market conditions. See "Note 14. 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 or payable 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. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities. Contract assets and contract liabilities were as follows: October 1, January 1, Trade receivables (1) $ 243.8 $ 240.0 Contract assets (current) (2) $ 2.8 $ 1.5 Contract assets (long-term) (3) $ 30.6 $ 18.2 Contract liabilities - Customer deposits (4) $ 30.3 $ 27.2 Contract liabilities - Accrued rebate and marketing programs (4) $ 38.2 $ 31.5 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" The increase in long-term contract assets is related to multi-year distribution agreements in the workplace furnishings segment. 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 contract liability balance related to customer deposits was $27.2 million as of January 1, 2022, of which, $25.8 million was recognized as revenue in the first nine months of 2022. 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 and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Oct. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures In July 2022, the Corporation closed on the sale of its China- and Hong Kong-based Lamex ("Lamex") business, which was a component of the workplace furnishings segment, for approximately $75 million plus standard post-closing adjustments, net of cash acquired by the buyer. The Corporation recorded a pre-tax gain on sale in the current quarter of $50.6 million that included transaction-related expenses of approximately $5 million. In June 2022, the Corporation acquired Dickerson Hearth Products ("Dickerson"), an installing fireplace distributor in the Raleigh, North Carolina area, for approximately $8 million. The transaction, which aligns with the Corporation's vertical integration strategy in the residential building products market, was structured as an asset acquisition and was consummated entirely in cash. The preliminary purchase price allocation includes $7.7 million of goodwill, which includes the impact of immaterial purchase adjustments made during the current quarter. The remaining assets and liabilities acquired were not material to the consolidated financial statements. The Corporation expects to finalize the allocation of the purchase price during 2022. In December 2021, the Corporation acquired The Outdoor GreatRoom Company ("OGC"), a leading manufacturer and supplier of premium outdoor fire tables and fire pits, for approximately $15 million. This transaction, which positions the Corporation to grow and develop a leading position in the fast-growing outdoor living market, was structured as a stock acquisition and was consummated entirely in cash. In October 2021, the Corporation acquired Trinity Hearth & Home ("Trinity"), an installing fireplace distributor in the Dallas/Fort Worth area, for approximately $31 million. This transaction, which aligns with the Corporation's vertical integration strategy in the residential building products market and provides a hub to better serve customers in the rapidly growing Southwest region, was structured as an asset acquisition and was consummated entirely in cash. The assets and liabilities of Trinity, OGC, and Dickerson are included in the Corporation's residential building products segment. The related goodwill, which is expected to be tax deductible, is assigned to the residential building products reporting unit. The purchase price allocation for Trinity and OGC, and estimated amortization periods of identified intangible assets as of the respective dates of acquisition is as follows: Trinity OGC Fair Value Amortization Period Fair Value Amortization Period Cash $ — $ 0.3 Inventories 1.9 4.5 Receivables 4.6 1.8 Prepaid expenses and other current assets — 1.2 Property, plant, and equipment 0.3 0.5 Accounts payable and accrued expenses (1.7) (2.8) Goodwill 14.2 2.4 Customer lists 12.0 13 Years 4.9 10 Years Trade names — 2.5 10 Years Total Net Assets $ 31.3 $ 15.3 As a result of further review and refinement, measurement period adjustments were recorded in the first quarter of 2022 which decreased Trinity's inventory acquired by $0.2 million and increased goodwill related to both acquisitions by $0.9 million in the aggregate. Additionally, the aggregate purchase price of the deals increased by $0.8 million as a result of post-closing working capital settlements. There were no measurement period adjustments recorded after the first quarter of 2022, and the purchase accounting for the Trinity and OGC acquisitions was complete as of July 2, 2022. All acquisitions above were accounted for using the acquisition method pursuant to ASC 805, with goodwill being recorded as a result of the purchase price exceeding the fair value of identifiable tangible and intangible assets and liabilities. |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Corporation's residential building products inventories, and a majority of its workplace furnishings inventories, are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. Inventories included in the Condensed Consolidated Balance Sheets consisted of the following: October 1, January 1, Finished products $ 156.0 $ 137.2 Materials and work in process 123.8 92.0 LIFO allowance (57.6) (47.6) Total inventories, net $ 222.2 $ 181.6 Inventory valued by the LIFO costing method 90 % 84 % In addition to the LIFO allowance, the Corporation recorded inventory allowances of $15.0 million and $19.9 million as of October 1, 2022 and January 1, 2022, respectively, to adjust for excess and obsolete inventory or otherwise reduce FIFO-basis inventory to net realizable value. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following: October 1, January 1, Goodwill, net $ 306.0 $ 297.3 Definite-lived intangible assets, net 130.4 147.6 Indefinite-lived intangible assets 15.5 26.5 Total goodwill and other intangible assets, net $ 451.9 $ 471.5 Goodwill The changes in the carrying amount of goodwill, by reporting segment, are as follows: Workplace Furnishings Residential Building Products Total Balance as of January 1, 2022 Goodwill $ 162.3 $ 213.8 $ 376.1 Accumulated impairment losses (78.6) (0.1) (78.8) Net goodwill balance as of January 1, 2022 83.6 213.7 297.3 Goodwill acquired (disposed) / measurement period adjustments (6.9) 8.6 1.7 Accumulated impairment losses disposed 6.9 — 6.9 Balance as of October 1, 2022 Goodwill 155.3 222.5 377.8 Accumulated impairment losses (71.7) (0.1) (71.8) Net goodwill balance as of October 1, 2022 $ 83.6 $ 222.3 $ 306.0 Goodwill and accumulated impairment losses were disposed in conjunction with the sale of Lamex in third quarter of 2022. See "Note 3. Acquisitions and Divestitures" for additional information on transactions that resulted in changes in goodwill in 2022. 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: October 1, 2022 January 1, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Software $ 202.1 $ 119.8 $ 82.3 $ 196.8 $ 102.1 $ 94.7 Trademarks and trade names 14.3 5.6 8.7 14.3 4.6 9.7 Customer lists and other 80.2 40.8 39.4 109.6 66.4 43.3 Net definite-lived intangible assets $ 296.5 $ 166.2 $ 130.4 $ 320.7 $ 173.0 $ 147.6 The decrease in the gross and accumulated amortization of definite-lived intangible asset balances during the current year is primarily related to the sale of Lamex and the disposal of related fully amortized assets. Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Capitalized software $ 6.1 $ 6.1 $ 18.4 $ 17.5 Other definite-lived intangibles $ 1.6 $ 1.6 $ 4.9 $ 4.9 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: 2022 2023 2024 2025 2026 Amortization expense $ 30.9 $ 26.9 $ 22.6 $ 19.5 $ 16.6 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: October 1, January 1, Trademarks and trade names $ 15.5 $ 26.5 In the third quarter of 2022, the Corporation sold its Lamex business which resulted in the disposal of the related indefinite-lived trade name. Impairment Analysis |
Product Warranties
Product Warranties | 9 Months Ended |
Oct. 01, 2022 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties The 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. The duration of warranty policies on the Corporation's products varies based on the type of product. 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: Nine Months Ended October 1, October 2, Balance at beginning of period $ 16.0 $ 16.1 Accruals for warranties issued during period 7.5 6.6 Settlements made during the period (7.3) (5.4) Balance at end of period $ 16.3 $ 17.3 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: October 1, January 1, Current $ 5.2 $ 5.4 Long-term 11.1 10.6 Total $ 16.3 $ 16.0 |
Debt
Debt | 9 Months Ended |
Oct. 01, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is as follows: October 1, January 1, Revolving credit facility with interest at a variable rate (October 1, 2022 - 4.2%; January 1, 2022 - 1.1%) $ 100.0 $ 75.0 Fixed-rate notes due in 2025 with an interest rate of 4.22% 50.0 50.0 Fixed-rate notes due in 2028 with an interest rate of 4.40% 50.0 50.0 Other amounts 1.2 3.2 Deferred debt issuance costs (0.3) (0.4) Total debt 200.8 177.8 Less: Current maturities of debt 1.2 3.2 Long-term debt $ 199.7 $ 174.6 The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at October 1, 2022, was $100 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 $97 million at October 1, 2022. As of October 1, 2022, the Corporation's revolving credit facility borrowings were under the amended and restated credit agreement entered into on June 14, 2022, with a scheduled maturity of June 2027. The Corporation deferred the related debt issuance costs, which are classified as assets, and is amortizing them over the term of the credit agreement. The current portion of debt issuance costs of $0.3 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 $1.2 million is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets. As of October 1, 2022, there was $100 million outstanding under the $400 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 $300 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 October 1, 2022, the deferred debt issuance costs balance of $0.3 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, depreciation, and amortization of intangibles, as well as non-cash items that increase or decrease net income. As of October 1, 2022, 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 Taxes | 9 Months Ended |
Oct. 01, 2022 | |
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 following table summarizes the Corporation's income tax provision: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Income before income taxes $ 79.5 $ 24.4 $ 125.8 $ 68.1 Income taxes $ 16.4 $ 5.2 $ 18.2 $ 16.5 Effective tax rate 20.7 % 21.5 % 14.5 % 24.2 % The Corporation's effective tax rate was substantially lower in the nine months ended October 1, 2022, compared to the same period last year, primarily due to the sale of the Lamex business in July 2022. This transaction created tax benefits related to existing deferred tax assets that were previously reduced through valuation adjustments, as well as basis differences, which significantly reduced the Corporation's year-to-date effective tax rate. See "Note 3. Acquisitions and Divestitures" for further information regarding the sale of Lamex. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 9 Months Ended |
Oct. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Instruments | Fair 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, put option liabilities, 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. Significant unobservable inputs, which are classified within Level 3, are used in the estimation of the fair value of put options related to private entities, determined using a simulation model based on assumptions including future cash flows, discount rates, and volatility. Financial instruments measured at fair value were as follows: Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance as of October 1, 2022 Cash and cash equivalents (including money market funds) (1) $ 21.1 $ 21.1 $ — $ — Government securities (2) $ 5.4 $ — $ 5.4 $ — Corporate bonds (2) $ 7.2 $ — $ 7.2 $ — Deferred stock-based compensation (4) $ (4.3) $ — $ (4.3) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Balance as of January 1, 2022 Cash and cash equivalents (including money market funds) (1) $ 52.3 $ 52.3 $ — $ — Government securities (2) $ 5.5 $ — $ 5.5 $ — Corporate bonds (2) $ 7.8 $ — $ 7.8 $ — Derivative financial instruments - liability (3) $ (1.0) $ — $ (1.0) $ — Deferred stock-based compensation (4) $ (8.1) $ — $ (8.1) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Amounts in parentheses indicate liabilities. 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" (5) "Other Long-Term Liabilities" |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | 9 Months Ended |
Oct. 01, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | Accumulated 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: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instrument Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2022 $ (0.7) $ 0.1 $ (5.4) $ (0.7) $ (6.8) Other comprehensive income (loss) before reclassifications (2.2) (1.0) — 1.1 (2.1) Tax (expense) or benefit — 0.2 — (0.3) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (3.3) — — 0.0 (3.3) Balance as of October 1, 2022 $ (6.2) $ (0.7) $ (5.4) $ 0.2 $ (12.2) Amounts in parentheses indicate reductions to equity. Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instrument Accumulated Other Comprehensive Income (Loss) Balance as of January 2, 2021 $ (1.1) $ 0.4 $ (6.7) $ (1.8) $ (9.2) Other comprehensive income (loss) before reclassifications 0.1 (0.2) — 0.0 (0.1) Tax (expense) or benefit — 0.0 — (0.0) 0.0 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — 0.5 0.5 Balance as of October 2, 2021 $ (1.0) $ 0.2 $ (6.7) $ (1.2) $ (8.6) Amounts in parentheses indicate reductions to equity. Interest Rate Swap Termination In April 2022, the Corporation terminated its interest rate swap agreement and received cash proceeds of $0.4 million, the fair value of the swap on the termination date. The proceeds were recorded as cash provided by operating activities in the Condensed Consolidated Statement of Cash Flows. The $0.4 million gain from the termination of this interest rate swap agreement was recorded to "Accumulated other comprehensive income (loss)" and will be amortized to interest expense through April 2023, the remaining term of the original interest rate swap agreement. The following table details the reclassifications from accumulated other comprehensive income (loss): Three Months Ended Nine Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income is Presented October 1, October 2, October 1, October 2, Derivative financial instrument Interest rate swap Interest expense, net $ 0.1 $ (0.3) $ (0.1) $ (0.7) Income taxes (0.0) 0.1 0.0 0.2 Foreign currency translation Lamex divestiture Gain on sale of subsidiary 3.3 — 3.3 — Net of tax $ 3.4 $ (0.2) $ 3.3 $ (0.5) Amounts in parentheses indicate reductions to profit. Dividend The Corporation declared and paid cash dividends per common share as follows: Nine Months Ended October 1, October 2, Dividends per common share $ 0.950 $ 0.925 Stock Repurchase The following table summarizes shares repurchased and settled by the Corporation: Nine Months Ended October 1, October 2, Shares repurchased 1.7 0.5 Average price per share $ 38.11 $ 39.52 Cash purchase price $ (63.9) $ (19.8) Purchases unsettled as of quarter end — 1.3 Prior year purchases settled in current year (1.3) — Shares repurchased per cash flow $ (65.2) $ (18.5) As of October 1, 2022, approximately $234.0 million remained of the Corporation's Board of Directors' ("Board") current repurchase authorization. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 01, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Numerator: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 63.1 $ 19.2 $ 107.6 $ 51.6 Denominators: Denominator for basic EPS weighted-average common shares outstanding 41.3 43.8 41.8 43.6 Potentially dilutive shares from stock-based compensation plans 0.5 0.6 0.5 0.5 Denominator for diluted EPS 41.8 44.3 42.3 44.0 Earnings per share – basic $ 1.53 $ 0.44 $ 2.57 $ 1.18 Earnings per share – diluted $ 1.51 $ 0.43 $ 2.54 $ 1.17 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: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Common stock equivalents excluded because their inclusion would be anti-dilutive 2.0 1.8 1.9 1.7 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationThe 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. In the third quarter of 2022, management's estimate of cumulative profitability in connection with various tranches of performance stock units was reduced, resulting in a decrease to the aggregate expense recognized to date, as well as to unrecognized expense. The following table summarizes expense associated with these plans: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Compensation cost $ (2.1) $ 1.8 $ 6.4 $ 9.5 The units granted by the Corporation had fair values as follows: Nine Months Ended October 1, October 2, Restricted stock units $ 7.0 $ 15.9 Performance stock units $ 6.2 $ 6.1 The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and stock units as of October 1, 2022: Unrecognized Compensation Expense Weighted-Average Remaining Non-vested stock options $ 0.2 0.2 Non-vested restricted stock units $ 5.9 0.8 Non-vested performance stock units $ 2.2 1.0 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | Guarantees, Commitments, and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of approximately $27 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and bankers' acceptances to guarantee certain payments to overseas suppliers; as of October 1, 2022, there were no outstanding amounts related to these types of guarantees. The letters of credit, bonds, and bankers' acceptances reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation periodically guarantees borrowing arrangements involving certain workplace furnishings dealers and third-party financial institutions. The terms of these guarantees, which range from less than one year to five years, generally require the Corporation to make payments directly to the financial institution in the event that the dealer is unable to repay its borrowings in accordance with the stated terms. The aggregate amount guaranteed by the Corporation in connection with these agreements is approximately $12 million as of October 1, 2022. The Corporation has determined the likelihood of making future payments under these guarantees is not probable and therefore no liability has been accrued. In the first quarter of 2022, the Corporation entered into an agreement to lease a new facility. The lease requires approximately $61 million of legally binding minimum payments over the approximate 15-year term of the agreement. The contractual payments and lease accounting are expected to commence in 2023 when construction of the facility is complete. 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 Information | 9 Months Ended |
Oct. 01, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Segment Information Management views the Corporation as two reportable segments based on industries: workplace furnishings and residential building products. 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. R eportable segment data reconciled to the Corporation's condensed consolidated financial statements was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Net Sales: Workplace furnishings $ 375.2 $ 393.1 $ 1,135.0 $ 1,040.0 Residential building products 223.6 193.6 657.9 541.5 Total $ 598.8 $ 586.7 $ 1,792.9 $ 1,581.5 Income (Loss) Before Income Taxes: Workplace furnishings $ 5.6 $ 3.9 $ 11.1 $ 9.6 Residential building products 39.6 33.4 117.0 103.8 General corporate (14.0) (11.0) (46.5) (39.8) Gain on sale of subsidiary 50.6 — 50.6 — Operating income 81.9 26.2 132.2 73.5 Interest expense, net 2.4 1.9 6.5 5.5 Total $ 79.5 $ 24.4 $ 125.8 $ 68.1 Depreciation and Amortization Expense: Workplace furnishings $ 11.3 $ 11.9 $ 34.6 $ 35.9 Residential building products 3.2 2.5 9.3 7.4 General corporate 6.5 6.4 19.6 18.7 Total $ 21.0 $ 20.9 $ 63.5 $ 62.0 Capital Expenditures (including capitalized software): Workplace furnishings $ 10.0 $ 6.5 $ 26.4 $ 24.0 Residential building products 3.6 5.5 12.1 12.1 General corporate 1.8 3.5 10.2 11.7 Total $ 15.5 $ 15.5 $ 48.7 $ 47.8 As of As of Identifiable Assets: Workplace furnishings $ 807.7 $ 809.0 Residential building products 517.7 479.5 General corporate 173.3 209.5 Total $ 1,498.6 $ 1,497.9 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 01, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Basis of Presentation | The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The January 1, 2022, consolidated balance sheet included in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the nine-month period ended October 1, 2022, are not necessarily indicative of the results expected for the fiscal year ending December 31, 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 1, 2022. Certain reclassifications have been made within the interim financial information to conform to the current presentation. All dollar amounts presented are in millions, except per share data or where otherwise indicated. Amounts may not sum due to rounding. |
Revenue | Contract Assets and Contract Liabilities In addition to trade receivables, the Corporation has contract assets consisting of funds paid or payable 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. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities. 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. |
Inventories | The Corporation's residential building products inventories, and a majority of its workplace furnishings inventories, are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. |
Goodwill and Other Intangible Assets | Impairment 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 Warranties | The 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. The duration of warranty policies on the Corporation's products varies based on the type of product. 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 Measurements | For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, put option liabilities, 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. Significant unobservable inputs, which are classified within Level 3, are used in the estimation of the fair value of put options related to private entities, determined using a simulation model based on assumptions including future cash flows, discount rates, and volatility. |
Share-based Compensation, Option and Incentive Plans | 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. In the third quarter of 2022, management's estimate of cumulative profitability in connection with various tranches of performance stock units was reduced, resulting in a decrease to the aggregate expense recognized to date, as well as to unrecognized expense. |
Business Segment Information | Management views the Corporation as two reportable segments based on industries: workplace furnishings and residential building products. 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) | 9 Months Ended |
Oct. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue from contracts with customers disaggregated by product category is as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Systems and storage $ 224.9 $ 227.8 $ 673.9 $ 611.1 Seating 114.8 134.2 354.7 349.6 Other 35.5 31.1 106.4 79.4 Total workplace furnishings 375.2 393.1 1,135.0 1,040.0 Residential building products 223.6 193.6 657.9 541.5 Net sales $ 598.8 $ 586.7 $ 1,792.9 $ 1,581.5 |
Contract with Customer, Asset and Liability | Contract assets and contract liabilities were as follows: October 1, January 1, Trade receivables (1) $ 243.8 $ 240.0 Contract assets (current) (2) $ 2.8 $ 1.5 Contract assets (long-term) (3) $ 30.6 $ 18.2 Contract liabilities - Customer deposits (4) $ 30.3 $ 27.2 Contract liabilities - Accrued rebate and marketing programs (4) $ 38.2 $ 31.5 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Asset Acquisition | The purchase price allocation for Trinity and OGC, and estimated amortization periods of identified intangible assets as of the respective dates of acquisition is as follows: Trinity OGC Fair Value Amortization Period Fair Value Amortization Period Cash $ — $ 0.3 Inventories 1.9 4.5 Receivables 4.6 1.8 Prepaid expenses and other current assets — 1.2 Property, plant, and equipment 0.3 0.5 Accounts payable and accrued expenses (1.7) (2.8) Goodwill 14.2 2.4 Customer lists 12.0 13 Years 4.9 10 Years Trade names — 2.5 10 Years Total Net Assets $ 31.3 $ 15.3 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories included in the Condensed Consolidated Balance Sheets consisted of the following: October 1, January 1, Finished products $ 156.0 $ 137.2 Materials and work in process 123.8 92.0 LIFO allowance (57.6) (47.6) Total inventories, net $ 222.2 $ 181.6 Inventory valued by the LIFO costing method 90 % 84 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following: October 1, January 1, Goodwill, net $ 306.0 $ 297.3 Definite-lived intangible assets, net 130.4 147.6 Indefinite-lived intangible assets 15.5 26.5 Total goodwill and other intangible assets, net $ 451.9 $ 471.5 |
Schedule of Goodwill | The changes in the carrying amount of goodwill, by reporting segment, are as follows: Workplace Furnishings Residential Building Products Total Balance as of January 1, 2022 Goodwill $ 162.3 $ 213.8 $ 376.1 Accumulated impairment losses (78.6) (0.1) (78.8) Net goodwill balance as of January 1, 2022 83.6 213.7 297.3 Goodwill acquired (disposed) / measurement period adjustments (6.9) 8.6 1.7 Accumulated impairment losses disposed 6.9 — 6.9 Balance as of October 1, 2022 Goodwill 155.3 222.5 377.8 Accumulated impairment losses (71.7) (0.1) (71.8) Net goodwill balance as of October 1, 2022 $ 83.6 $ 222.3 $ 306.0 |
Schedule of Finite-Lived Intangible Assets by Major Class | The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets: October 1, 2022 January 1, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Software $ 202.1 $ 119.8 $ 82.3 $ 196.8 $ 102.1 $ 94.7 Trademarks and trade names 14.3 5.6 8.7 14.3 4.6 9.7 Customer lists and other 80.2 40.8 39.4 109.6 66.4 43.3 Net definite-lived intangible assets $ 296.5 $ 166.2 $ 130.4 $ 320.7 $ 173.0 $ 147.6 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Capitalized software $ 6.1 $ 6.1 $ 18.4 $ 17.5 Other definite-lived intangibles $ 1.6 $ 1.6 $ 4.9 $ 4.9 |
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 years is as follows: 2022 2023 2024 2025 2026 Amortization expense $ 30.9 $ 26.9 $ 22.6 $ 19.5 $ 16.6 |
Schedule of Indefinite Lived Intangible Assets and Goodwill | These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Condensed Consolidated Balance Sheets: October 1, January 1, Trademarks and trade names $ 15.5 $ 26.5 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Product Warranties Disclosures [Abstract] | |
Activity Associated with Warranty Obligations | Activity associated with warranty obligations was as follows: Nine Months Ended October 1, October 2, Balance at beginning of period $ 16.0 $ 16.1 Accruals for warranties issued during period 7.5 6.6 Settlements made during the period (7.3) (5.4) Balance at end of period $ 16.3 $ 17.3 October 1, January 1, Current $ 5.2 $ 5.4 Long-term 11.1 10.6 Total $ 16.3 $ 16.0 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt is as follows: October 1, January 1, Revolving credit facility with interest at a variable rate (October 1, 2022 - 4.2%; January 1, 2022 - 1.1%) $ 100.0 $ 75.0 Fixed-rate notes due in 2025 with an interest rate of 4.22% 50.0 50.0 Fixed-rate notes due in 2028 with an interest rate of 4.40% 50.0 50.0 Other amounts 1.2 3.2 Deferred debt issuance costs (0.3) (0.4) Total debt 200.8 177.8 Less: Current maturities of debt 1.2 3.2 Long-term debt $ 199.7 $ 174.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The following table summarizes the Corporation's income tax provision: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Income before income taxes $ 79.5 $ 24.4 $ 125.8 $ 68.1 Income taxes $ 16.4 $ 5.2 $ 18.2 $ 16.5 Effective tax rate 20.7 % 21.5 % 14.5 % 24.2 % |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | Financial instruments measured at fair value were as follows: Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance as of October 1, 2022 Cash and cash equivalents (including money market funds) (1) $ 21.1 $ 21.1 $ — $ — Government securities (2) $ 5.4 $ — $ 5.4 $ — Corporate bonds (2) $ 7.2 $ — $ 7.2 $ — Deferred stock-based compensation (4) $ (4.3) $ — $ (4.3) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Balance as of January 1, 2022 Cash and cash equivalents (including money market funds) (1) $ 52.3 $ 52.3 $ — $ — Government securities (2) $ 5.5 $ — $ 5.5 $ — Corporate bonds (2) $ 7.8 $ — $ 7.8 $ — Derivative financial instruments - liability (3) $ (1.0) $ — $ (1.0) $ — Deferred stock-based compensation (4) $ (8.1) $ — $ (8.1) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Amounts in parentheses indicate liabilities. 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" (5) "Other Long-Term Liabilities" |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income and Changes in Accumulated Other Comprehensive Income, Net of Tax | 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: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instrument Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2022 $ (0.7) $ 0.1 $ (5.4) $ (0.7) $ (6.8) Other comprehensive income (loss) before reclassifications (2.2) (1.0) — 1.1 (2.1) Tax (expense) or benefit — 0.2 — (0.3) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (3.3) — — 0.0 (3.3) Balance as of October 1, 2022 $ (6.2) $ (0.7) $ (5.4) $ 0.2 $ (12.2) Amounts in parentheses indicate reductions to equity. Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instrument Accumulated Other Comprehensive Income (Loss) Balance as of January 2, 2021 $ (1.1) $ 0.4 $ (6.7) $ (1.8) $ (9.2) Other comprehensive income (loss) before reclassifications 0.1 (0.2) — 0.0 (0.1) Tax (expense) or benefit — 0.0 — (0.0) 0.0 Amounts reclassified from accumulated other comprehensive income (loss), net of tax — — — 0.5 0.5 Balance as of October 2, 2021 $ (1.0) $ 0.2 $ (6.7) $ (1.2) $ (8.6) Amounts in parentheses indicate reductions to equity. |
Schedule of Reclassification from Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income (loss): Three Months Ended Nine Months Ended Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income is Presented October 1, October 2, October 1, October 2, Derivative financial instrument Interest rate swap Interest expense, net $ 0.1 $ (0.3) $ (0.1) $ (0.7) Income taxes (0.0) 0.1 0.0 0.2 Foreign currency translation Lamex divestiture Gain on sale of subsidiary 3.3 — 3.3 — Net of tax $ 3.4 $ (0.2) $ 3.3 $ (0.5) Amounts in parentheses indicate reductions to profit. |
Schedule of Dividends Declared and Paid Per Share | The Corporation declared and paid cash dividends per common share as follows: Nine Months Ended October 1, October 2, Dividends per common share $ 0.950 $ 0.925 |
Schedule of Share Repurchases | The following table summarizes shares repurchased and settled by the Corporation: Nine Months Ended October 1, October 2, Shares repurchased 1.7 0.5 Average price per share $ 38.11 $ 39.52 Cash purchase price $ (63.9) $ (19.8) Purchases unsettled as of quarter end — 1.3 Prior year purchases settled in current year (1.3) — Shares repurchased per cash flow $ (65.2) $ (18.5) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Numerator: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 63.1 $ 19.2 $ 107.6 $ 51.6 Denominators: Denominator for basic EPS weighted-average common shares outstanding 41.3 43.8 41.8 43.6 Potentially dilutive shares from stock-based compensation plans 0.5 0.6 0.5 0.5 Denominator for diluted EPS 41.8 44.3 42.3 44.0 Earnings per share – basic $ 1.53 $ 0.44 $ 2.57 $ 1.18 Earnings per share – diluted $ 1.51 $ 0.43 $ 2.54 $ 1.17 |
Schedule of Anti-Dilutive Weighted Average Number of Shares | 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: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Common stock equivalents excluded because their inclusion would be anti-dilutive 2.0 1.8 1.9 1.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expense | The following table summarizes expense associated with these plans: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Compensation cost $ (2.1) $ 1.8 $ 6.4 $ 9.5 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period | The units granted by the Corporation had fair values as follows: Nine Months Ended October 1, October 2, Restricted stock units $ 7.0 $ 15.9 Performance stock units $ 6.2 $ 6.1 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and stock units as of October 1, 2022: Unrecognized Compensation Expense Weighted-Average Remaining Non-vested stock options $ 0.2 0.2 Non-vested restricted stock units $ 5.9 0.8 Non-vested performance stock units $ 2.2 1.0 |
Reportable Segment Information
Reportable Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Data | R eportable segment data reconciled to the Corporation's condensed consolidated financial statements was as follows: Three Months Ended Nine Months Ended October 1, October 2, October 1, October 2, Net Sales: Workplace furnishings $ 375.2 $ 393.1 $ 1,135.0 $ 1,040.0 Residential building products 223.6 193.6 657.9 541.5 Total $ 598.8 $ 586.7 $ 1,792.9 $ 1,581.5 Income (Loss) Before Income Taxes: Workplace furnishings $ 5.6 $ 3.9 $ 11.1 $ 9.6 Residential building products 39.6 33.4 117.0 103.8 General corporate (14.0) (11.0) (46.5) (39.8) Gain on sale of subsidiary 50.6 — 50.6 — Operating income 81.9 26.2 132.2 73.5 Interest expense, net 2.4 1.9 6.5 5.5 Total $ 79.5 $ 24.4 $ 125.8 $ 68.1 Depreciation and Amortization Expense: Workplace furnishings $ 11.3 $ 11.9 $ 34.6 $ 35.9 Residential building products 3.2 2.5 9.3 7.4 General corporate 6.5 6.4 19.6 18.7 Total $ 21.0 $ 20.9 $ 63.5 $ 62.0 Capital Expenditures (including capitalized software): Workplace furnishings $ 10.0 $ 6.5 $ 26.4 $ 24.0 Residential building products 3.6 5.5 12.1 12.1 General corporate 1.8 3.5 10.2 11.7 Total $ 15.5 $ 15.5 $ 48.7 $ 47.8 As of As of Identifiable Assets: Workplace furnishings $ 807.7 $ 809.0 Residential building products 517.7 479.5 General corporate 173.3 209.5 Total $ 1,498.6 $ 1,497.9 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 598.8 | $ 586.7 | $ 1,792.9 | $ 1,581.5 |
Workplace furnishings | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 375.2 | 393.1 | 1,135 | 1,040 |
Workplace furnishings | Systems and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 224.9 | 227.8 | 673.9 | 611.1 |
Workplace furnishings | Seating | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 114.8 | 134.2 | 354.7 | 349.6 |
Workplace furnishings | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 35.5 | 31.1 | 106.4 | 79.4 |
Residential building products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 223.6 | $ 193.6 | $ 657.9 | $ 541.5 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables | $ 243.8 | $ 240 |
Contract assets (current) | 2.8 | 1.5 |
Contract assets (long-term) | 30.6 | 18.2 |
Contract liability, customer deposits | 30.3 | 27.2 |
Contract liabilities | $ 38.2 | $ 31.5 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Jan. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liability, customer deposits | $ 30.3 | $ 27.2 |
Revenue recognized | $ 25.8 | |
Payment terms | 30 days |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Jul. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | |
Dickerson Heart Products | |||||||
Schedule Of Asset Acquisition [Line Items] | |||||||
Payments for asset acquisitions | $ 8 | ||||||
Goodwill | $ 7.7 | ||||||
OGC | |||||||
Schedule Of Asset Acquisition [Line Items] | |||||||
Payments for asset acquisitions | $ 15 | ||||||
Goodwill | $ 2.4 | ||||||
Trinity | |||||||
Schedule Of Asset Acquisition [Line Items] | |||||||
Payments for asset acquisitions | $ 31 | ||||||
Goodwill | $ 14.2 | ||||||
Decrease in inventory | $ 0.2 | ||||||
Trnity and OGC | |||||||
Schedule Of Asset Acquisition [Line Items] | |||||||
Increase in goodwill | 0.9 | ||||||
Increase in purchase price | $ 0 | $ 0.8 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Lamex | |||||||
Schedule Of Asset Acquisition [Line Items] | |||||||
Consideration from sale | $ 75 | ||||||
Pre-tax gain | $ 50.6 | ||||||
Transaction-related expenses | $ 5 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation and Estimated Amortization (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2021 | Oct. 31, 2021 | |
Trinity | ||
Schedule Of Asset Acquisition [Line Items] | ||
Cash | $ 0 | |
Inventories | 1.9 | |
Receivables | 4.6 | |
Prepaid expenses and other current assets | 0 | |
Property, plant, and equipment | 0.3 | |
Accounts payable and accrued expenses | (1.7) | |
Goodwill | 14.2 | |
Total Net Assets | 31.3 | |
Trinity | Customer lists | ||
Schedule Of Asset Acquisition [Line Items] | ||
Intangible assets | $ 12 | |
Amortization Period | 13 years | |
Trinity | Trade names | ||
Schedule Of Asset Acquisition [Line Items] | ||
Intangible assets | $ 0 | |
OGC | ||
Schedule Of Asset Acquisition [Line Items] | ||
Cash | $ 0.3 | |
Inventories | 4.5 | |
Receivables | 1.8 | |
Prepaid expenses and other current assets | 1.2 | |
Property, plant, and equipment | 0.5 | |
Accounts payable and accrued expenses | (2.8) | |
Goodwill | 2.4 | |
Total Net Assets | 15.3 | |
OGC | Customer lists | ||
Schedule Of Asset Acquisition [Line Items] | ||
Intangible assets | $ 4.9 | |
Amortization Period | 10 years | |
OGC | Trade names | ||
Schedule Of Asset Acquisition [Line Items] | ||
Intangible assets | $ 2.5 | |
Amortization Period | 10 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Inventories | ||
Finished products | $ 156 | $ 137.2 |
Materials and work in process | 123.8 | 92 |
LIFO allowance | (57.6) | (47.6) |
Total inventories, net | $ 222.2 | $ 181.6 |
Inventory valued by the LIFO costing method | 90% | 84% |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
FIFO inventory allowance | $ 15 | $ 19.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, net | $ 306 | $ 297.3 |
Definite-lived intangible assets, net | 130.4 | 147.6 |
Indefinite-lived intangible assets | 15.5 | 26.5 |
Total goodwill and other intangible assets, net | $ 451.9 | $ 471.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | $ 376.1 |
Accumulated impairment losses, beginning balance | (78.8) |
Goodwill, net, beginning balance | 297.3 |
Goodwill acquired (disposed) / measurement period adjustments | 1.7 |
Goodwill impairment losses | 6.9 |
Goodwill, gross, ending balance | 377.8 |
Accumulated impairment losses, ending balance | (71.8) |
Goodwill, net, ending balance | 306 |
Workplace furnishings | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 162.3 |
Accumulated impairment losses, beginning balance | (78.6) |
Goodwill, net, beginning balance | 83.6 |
Goodwill acquired (disposed) / measurement period adjustments | (6.9) |
Goodwill impairment losses | 6.9 |
Goodwill, gross, ending balance | 155.3 |
Accumulated impairment losses, ending balance | (71.7) |
Goodwill, net, ending balance | 83.6 |
Residential building products | |
Goodwill [Roll Forward] | |
Goodwill, gross, beginning balance | 213.8 |
Accumulated impairment losses, beginning balance | (0.1) |
Goodwill, net, beginning balance | 213.7 |
Goodwill acquired (disposed) / measurement period adjustments | 8.6 |
Goodwill impairment losses | 0 |
Goodwill, gross, ending balance | 222.5 |
Accumulated impairment losses, ending balance | (0.1) |
Goodwill, net, ending balance | $ 222.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 296.5 | $ 320.7 |
Accumulated Amortization | 166.2 | 173 |
Net | 130.4 | 147.6 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 202.1 | 196.8 |
Accumulated Amortization | 119.8 | 102.1 |
Net | 82.3 | 94.7 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 14.3 | 14.3 |
Accumulated Amortization | 5.6 | 4.6 |
Net | 8.7 | 9.7 |
Customer lists and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 80.2 | 109.6 |
Accumulated Amortization | 40.8 | 66.4 |
Net | $ 39.4 | $ 43.3 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Capitalized software | $ 6.1 | $ 6.1 | $ 18.4 | $ 17.5 |
Other definite-lived intangibles | $ 1.6 | $ 1.6 | $ 4.9 | $ 4.9 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Millions | Oct. 01, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 30.9 |
2023 | 26.9 |
2024 | 22.6 |
2025 | 19.5 |
2026 | $ 16.6 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets - Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 15.5 | $ 26.5 |
Trademarks and trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 15.5 | $ 26.5 |
Product Warranties - Warranty O
Product Warranties - Warranty Obligations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 16 | $ 16.1 |
Accruals for warranties issued during period | 7.5 | 6.6 |
Settlements made during the period | (7.3) | (5.4) |
Balance at end of period | $ 16.3 | $ 17.3 |
Product Warranties - Current an
Product Warranties - Current and Long Term Warranty (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jan. 02, 2021 |
Product Warranties Disclosures [Abstract] | ||||
Current | $ 5.2 | $ 5.4 | ||
Long-term | 11.1 | 10.6 | ||
Total | $ 16.3 | $ 16 | $ 17.3 | $ 16.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 | May 31, 2018 |
Debt Instrument [Line Items] | |||
Deferred debt issuance costs | $ (0.3) | $ (0.4) | |
Total debt | 200.8 | 177.8 | |
Less: Current maturities of debt | 1.2 | 3.2 | |
Long-term debt | $ 199.7 | $ 174.6 | |
Fixed-rate notes due in 2025 with an interest rate of 4.22% | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.22% | 4.22% | |
Fixed-rate notes due in 2028 with an interest rate of 4.40% | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.40% | 4.40% | |
Revolving credit facility with interest at a variable rate (October 1, 2022 - 4.2%; January 1, 2022 - 1.1%) | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.20% | 1.10% | |
Total debt | $ 100 | $ 75 | |
Fixed-rate notes due in 2025 with an interest rate of 4.22% | |||
Debt Instrument [Line Items] | |||
Total debt | 50 | 50 | |
Fixed-rate notes due in 2028 with an interest rate of 4.40% | |||
Debt Instrument [Line Items] | |||
Total debt | 50 | 50 | |
Other amounts | |||
Debt Instrument [Line Items] | |||
Total debt | $ 1.2 | $ 3.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | May 31, 2018 | Oct. 01, 2022 | Jan. 01, 2022 |
Debt Instrument [Line Items] | |||
Long-term debt obligations | $ 200,800,000 | $ 177,800,000 | |
Deferred debt issuance costs, current | 300,000 | ||
Deferred debt issuance costs, noncurrent | $ 1,200,000 | ||
Maximum ratio of interest coverage to earnings for the last four fiscal quarters | 4 | ||
Maximum ratio of leverage to earnings for the last four fiscal quarters | 3.5 | ||
Revolving credit facility with interest at a variable rate (October 1, 2022 - 4.2%; January 1, 2022 - 1.1%) | |||
Debt Instrument [Line Items] | |||
Long-term line of credit outstanding | $ 100,000,000 | ||
Line of credit maximum borrowing capacity | 400,000,000 | ||
Line of credit remaining borrowing capacity | 300,000,000 | ||
Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Long-term debt obligations | 100,000,000 | ||
Private Placement | |||
Debt Instrument [Line Items] | |||
Fair value of debt obligations | 97,000,000 | ||
Deferred debt issuance costs, noncurrent | 300,000 | ||
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 term | 7 years | ||
Interest rate | 4.22% | 4.22% | |
Fixed-rate notes due in 2028 with an interest rate of 4.40% | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 50,000,000 | ||
Note term | 10 years | ||
Interest rate | 4.40% | 4.40% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 79.5 | $ 24.4 | $ 125.8 | $ 68.1 |
Income taxes | $ 16.4 | $ 5.2 | $ 18.2 | $ 16.5 |
Effective tax rate | 20.70% | 21.50% | 14.50% | 24.20% |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Instruments - Assets (Details) - USD ($) $ in Millions | Oct. 01, 2022 | Jan. 01, 2022 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents (including money market funds) | $ 21.1 | $ 52.3 |
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) | 21.1 | 52.3 |
Derivative financial instruments - liability | (1) | |
Deferred stock-based compensation | (4.3) | (8.1) |
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) | 21.1 | 52.3 |
Derivative financial instruments - liability | 0 | |
Deferred stock-based compensation | 0 | 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 - liability | (1) | |
Deferred stock-based compensation | (4.3) | (8.1) |
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 - liability | 0 | |
Deferred stock-based compensation | 0 | 0 |
Fair value, measurements, recurring | Government securities | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 5.4 | 5.5 |
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 securities | 0 | 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 securities | 5.4 | 5.5 |
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 securities | 0 | 0 |
Fair value, measurements, recurring | Corporate bonds | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 7.2 | 7.8 |
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 securities | 0 | 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 securities | 7.2 | 7.8 |
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 |
Fair value, measurements, recurring | Put option | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | (5.1) | (5.1) |
Fair value, measurements, recurring | Put option | 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 - liability | 0 | 0 |
Fair value, measurements, recurring | Put option | Significant other observable inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | 0 | 0 |
Fair value, measurements, recurring | Put option | Significant unobservable inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | $ (5.1) | $ (5.1) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Components (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 590 | $ 590.7 |
Other comprehensive income (loss) before reclassifications | (2.1) | (0.1) |
Tax (expense) or benefit | (0.1) | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (3.3) | 0.5 |
Ending balance | 606.4 | 629.7 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (6.8) | (9.2) |
Ending balance | (12.2) | (8.6) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (0.7) | (1.1) |
Other comprehensive income (loss) before reclassifications | (2.2) | 0.1 |
Tax (expense) or benefit | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (3.3) | 0 |
Ending balance | (6.2) | (1) |
Unrealized Gains (Losses) on Debt Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 0.1 | 0.4 |
Other comprehensive income (loss) before reclassifications | (1) | (0.2) |
Tax (expense) or benefit | 0.2 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | (0.7) | 0.2 |
Pension and Post-retirement Liabilities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (5.4) | (6.7) |
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 | (5.4) | (6.7) |
Derivative Financial Instrument | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (0.7) | (1.8) |
Other comprehensive income (loss) before reclassifications | 1.1 | 0 |
Tax (expense) or benefit | (0.3) | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0.5 |
Ending balance | $ 0.2 | $ (1.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2022 | Oct. 01, 2022 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Remaining authorized repurchase amount | $ 234 | |
Interest rate swap | ||
Class of Stock [Line Items] | ||
Cash proceeds from termination of derivative | $ 0.4 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | $ (2.4) | $ (1.9) | $ (6.5) | $ (5.5) |
Income taxes | (16.4) | (5.2) | (18.2) | (16.5) |
Gain on sale of subsidiary | 50.6 | 0 | 50.6 | 0 |
Net income attributable to HNI Corporation | 63.1 | 19.2 | 107.6 | 51.6 |
Reclassifications from accumulated other comprehensive income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to HNI Corporation | 3.4 | (0.2) | 3.3 | (0.5) |
Reclassifications from accumulated other comprehensive income (loss) | Foreign Currency Translation Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on sale of subsidiary | 3.3 | 0 | 3.3 | 0 |
Interest rate swap | Reclassifications from accumulated other comprehensive income (loss) | Derivative Financial Instrument | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | 0.1 | (0.3) | (0.1) | (0.7) |
Income taxes | $ 0 | $ 0.1 | $ 0 | $ 0.2 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Dividend (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Equity [Abstract] | ||||
Dividends per common share (in dollars per share) | $ 0.320 | $ 0.310 | $ 0.950 | $ 0.925 |
Dividends per common share (in dollars per share) | $ 0.320 | $ 0.310 | $ 0.950 | $ 0.925 |
Accumulated Other Comprehensi_7
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shares repurchased per cash flow | $ (65.2) | $ (18.5) |
Common Stock | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Shares repurchased (in shares) | 1.7 | 0.5 |
Average price per share (in dollars per share) | $ 38.11 | $ 39.52 |
Cash purchase price | $ (63.9) | $ (19.8) |
Purchases unsettled as of quarter end | 0 | 1.3 |
Prior year purchases settled in current year | (1.3) | 0 |
Shares repurchased per cash flow | $ (65.2) | $ (18.5) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Numerator: | ||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 63.1 | $ 19.2 | $ 107.6 | $ 51.6 |
Denominators: | ||||
Denominator for basic EPS weighted-average common shares outstanding (in shares) | 41.3 | 43.8 | 41.8 | 43.6 |
Potentially dilutive shares from stock-based compensation plans (in shares) | 0.5 | 0.6 | 0.5 | 0.5 |
Denominator for diluted EPS (in shares) | 41.8 | 44.3 | 42.3 | 44 |
Earnings per share - basic (in dollars per share) | $ 1.53 | $ 0.44 | $ 2.57 | $ 1.18 |
Earnings per share - diluted (in dollars per share) | $ 1.51 | $ 0.43 | $ 2.54 | $ 1.17 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
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 | 1.8 | 1.9 | 1.7 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Compensation cost | $ (2.1) | $ 1.8 | $ 6.4 | $ 9.5 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share-based Payment Award, Options, Grants in Period (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 7 | $ 15.9 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 6.2 | $ 6.1 |
Stock-Based Compensation - Unre
Stock-Based Compensation - Unrecognized Compensation Cost, Nonvested Awards (Details) $ in Millions | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Non-vested stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 0.2 |
Weighted-Average Remaining Service Period (years) | 2 months 12 days |
Non-vested restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 5.9 |
Weighted-Average Remaining Service Period (years) | 9 months 18 days |
Non-vested performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 2.2 |
Weighted-Average Remaining Service Period (years) | 1 year |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 01, 2022 | Apr. 02, 2022 | |
Line of Credit Facility [Line Items] | ||
Aggregate amount guaranteed | $ 12 | |
New Facility | ||
Line of Credit Facility [Line Items] | ||
Minimum payments | $ 61 | |
Term of contract | 15 years | |
Minimum | ||
Line of Credit Facility [Line Items] | ||
Term of guarantees | 1 year | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Term of guarantees | 5 years | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 27 | |
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 Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 USD ($) | Oct. 02, 2021 USD ($) | Oct. 01, 2022 USD ($) segment | Oct. 02, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Net sales | $ 598.8 | $ 586.7 | $ 1,792.9 | $ 1,581.5 | |
Income (Loss) Before Income Taxes: | 81.9 | 26.2 | 132.2 | 73.5 | |
Gain on sale of subsidiary | 50.6 | 0 | 50.6 | 0 | |
Interest expense, net | 2.4 | 1.9 | 6.5 | 5.5 | |
Income before income taxes | 79.5 | 24.4 | 125.8 | 68.1 | |
Depreciation and Amortization Expense: | 21 | 20.9 | 63.5 | 62 | |
Capital Expenditures (including capitalized software): | 15.5 | 15.5 | 48.7 | 47.8 | |
Identifiable Assets: | 1,498.6 | 1,498.6 | $ 1,497.9 | ||
Workplace furnishings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 375.2 | 393.1 | 1,135 | 1,040 | |
Residential building products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 223.6 | 193.6 | 657.9 | 541.5 | |
Operating segments | Workplace furnishings | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 375.2 | 393.1 | 1,135 | 1,040 | |
Income (Loss) Before Income Taxes: | 5.6 | 3.9 | 11.1 | 9.6 | |
Depreciation and Amortization Expense: | 11.3 | 11.9 | 34.6 | 35.9 | |
Capital Expenditures (including capitalized software): | 10 | 6.5 | 26.4 | 24 | |
Identifiable Assets: | 807.7 | 807.7 | 809 | ||
Operating segments | Residential building products | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 223.6 | 193.6 | 657.9 | 541.5 | |
Income (Loss) Before Income Taxes: | 39.6 | 33.4 | 117 | 103.8 | |
Depreciation and Amortization Expense: | 3.2 | 2.5 | 9.3 | 7.4 | |
Capital Expenditures (including capitalized software): | 3.6 | 5.5 | 12.1 | 12.1 | |
Identifiable Assets: | 517.7 | 517.7 | 479.5 | ||
General corporate | |||||
Segment Reporting Information [Line Items] | |||||
Income (Loss) Before Income Taxes: | (14) | (11) | (46.5) | (39.8) | |
Depreciation and Amortization Expense: | 6.5 | 6.4 | 19.6 | 18.7 | |
Capital Expenditures (including capitalized software): | 1.8 | $ 3.5 | 10.2 | $ 11.7 | |
Identifiable Assets: | $ 173.3 | $ 173.3 | $ 209.5 |