UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 | |
FORM 10-Q | |
(MARK ONE) | |
/ X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 29, 2013. | |
OR | |
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from ____________________ to ____________________ | |
Commission File Number: 1-14225 | |
HNI Corporation (Exact name of registrant as specified in its charter) | |
Iowa (State or other jurisdiction of incorporation or organization) | 42-0617510 (I.R.S. Employer Identification Number) |
P. O. Box 1109, 408 East Second Street Muscatine, Iowa 52761-0071 (Address of principal executive offices) | 52761-0071 (Zip Code) |
Registrant's telephone number, including area code: 563/272-7400 | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO o | |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES x NO o | |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. Large accelerated filer x Accelerated filer o Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o | |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x | |
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. | |
Class Common Shares, $1 Par Value | Outstanding at June 29, 2013 45,388,995 |
HNI Corporation and SUBSIDIARIES | |
INDEX | |
PART I. FINANCIAL INFORMATION | |
Page | |
Item 1. Financial Statements (Unaudited) | |
Condensed Consolidated Balance Sheets - June 29, 2013, and December 29, 2012 | |
Condensed Consolidated Statements of Comprehensive Income - Three Months Ended June 29, 2013, and June 30, 2012 | |
Condensed Consolidated Statements of Comprehensive Income - Six Months Ended June 29, 2013, and June 30, 2012 | |
Condensed Consolidated Statements of Cash Flows - Six Months Ended June 29, 2013, and June 30, 2012 | |
Notes to Condensed Consolidated Financial Statements | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. Controls and Procedures | |
PART II. OTHER INFORMATION | |
Item 1. Legal Proceedings | |
Item 1A. Risk Factors | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. Defaults Upon Senior Securities - None | - |
Item 4. Mine Safety Disclosures - Not Applicable | - |
Item 5. Other Information - None | - |
Item 6. Exhibits | |
SIGNATURES | |
EXHIBIT INDEX |
HNI Corporation and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
June 29, 2013 | December 29, 2012 | ||||||
ASSETS | (In thousands) | ||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 33,751 | $ | 41,782 | |||
Short-term investments | 7,251 | 7,250 | |||||
Receivables | 245,352 | 213,490 | |||||
Inventories | 118,309 | 93,515 | |||||
Deferred income taxes | 21,280 | 21,977 | |||||
Prepaid expenses and other current assets | 32,944 | 26,926 | |||||
Total Current Assets | 458,887 | 404,940 | |||||
PROPERTY, PLANT, AND EQUIPMENT | |||||||
Land and land improvements | 26,931 | 26,681 | |||||
Buildings | 276,966 | 268,003 | |||||
Machinery and equipment | 465,156 | 465,014 | |||||
Construction in progress | 20,535 | 17,871 | |||||
789,588 | 777,569 | ||||||
Less accumulated depreciation | 537,345 | 537,079 | |||||
Net Property, Plant, and Equipment | 252,243 | 240,490 | |||||
GOODWILL | 287,092 | 288,348 | |||||
OTHER ASSETS | 146,655 | 145,853 | |||||
Total Assets | $ | 1,144,877 | $ | 1,079,631 |
HNI Corporation and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
June 29, 2013 | December 29, 2012 | ||||||
LIABILITIES AND EQUITY | (In thousands, except share and per share value data) | ||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $ | 382,215 | $ | 390,958 | |||
Note payable and current maturities of long-term debt and capital lease obligations | 69,169 | 4,554 | |||||
Current maturities of other long-term obligations | 3,016 | 373 | |||||
Total Current Liabilities | 454,400 | 395,885 | |||||
LONG-TERM DEBT | 150,118 | 150,146 | |||||
CAPITAL LEASE OBLIGATIONS | 169 | 226 | |||||
OTHER LONG-TERM LIABILITIES | 61,179 | 57,281 | |||||
DEFERRED INCOME TAXES | 60,142 | 55,433 | |||||
COMMITMENTS AND CONTINGENCIES | |||||||
EQUITY | |||||||
HNI Corporation shareholders' equity: | |||||||
Capital Stock: | |||||||
Preferred, $1 par value, authorized 2,000,000 shares, no shares outstanding | — | — | |||||
Common, $1 par value, authorized 200,000,000 shares, outstanding - | |||||||
June 29, 2013 – 45,388,995 shares; | |||||||
December 29, 2012 – 44,950,703 shares | 45,389 | 44,951 | |||||
Additional paid-in capital | 29,186 | 20,153 | |||||
Retained earnings | 344,893 | 353,942 | |||||
Accumulated other comprehensive income (loss) | (744 | ) | 1,313 | ||||
Total HNI Corporation shareholders' equity | 418,724 | 420,359 | |||||
Noncontrolling interest | 145 | 301 | |||||
Total Equity | 418,869 | 420,660 | |||||
Total Liabilities and Equity | $ | 1,144,877 | $ | 1,079,631 |
HNI Corporation and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||
Three Months Ended | |||||||
June 29, 2013 | June 30, 2012 | ||||||
(In thousands, except share and per share data) | |||||||
Net sales | $ | 510,698 | $ | 480,400 | |||
Cost of sales | 336,040 | 315,287 | |||||
Gross profit | 174,658 | 165,113 | |||||
Selling and administrative expenses | 154,538 | 151,455 | |||||
Restructuring and impairment | (35 | ) | 292 | ||||
Operating income | 20,155 | 13,366 | |||||
Interest income | 158 | 276 | |||||
Interest expense | 2,725 | 2,909 | |||||
Income before income taxes | 17,588 | 10,733 | |||||
Income taxes | 6,189 | 3,835 | |||||
Net income | 11,399 | 6,898 | |||||
Less: Net (loss) attributable to the noncontrolling interest | (22 | ) | (127 | ) | |||
Net income attributable to HNI Corporation | $ | 11,421 | $ | 7,025 | |||
Net income attributable to HNI Corporation per common share – basic | $ | 0.25 | $ | 0.15 | |||
Average number of common shares outstanding – basic | 45,412,668 | 45,419,564 | |||||
Net income attributable to HNI Corporation per common share – diluted | $ | 0.25 | $ | 0.15 | |||
Average number of common shares outstanding – diluted | 46,109,563 | 45,944,815 | |||||
Cash dividends per common share | $ | 0.24 | $ | 0.24 | |||
Other comprehensive income, net of tax of 2013 $103; 2012 $(447) | (2,086 | ) | (831 | ) | |||
Comprehensive income | 9,313 | 6,067 | |||||
Less: Comprehensive (loss) attributable to noncontrolling interest | (22 | ) | (127 | ) | |||
Comprehensive income attributable to HNI Corporation | $ | 9,335 | $ | 6,194 |
HNI Corporation and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||
Six Months Ended | |||||||
June 29, 2013 | June 30, 2012 | ||||||
(In thousands, except share and per share data) | |||||||
Net sales | $ | 952,995 | $ | 925,612 | |||
Cost of sales | 630,555 | 613,672 | |||||
Gross profit | 322,440 | 311,940 | |||||
Selling and administrative expenses | 299,094 | 295,189 | |||||
Restructuring and impairment | 121 | 1,189 | |||||
Operating income | 23,225 | 15,562 | |||||
Interest income | 310 | 455 | |||||
Interest expense | 5,393 | 5,523 | |||||
Income before income taxes | 18,142 | 10,494 | |||||
Income taxes | 5,564 | 3,749 | |||||
Net income | 12,578 | 6,745 | |||||
Less: Net (loss) attributable to the noncontrolling interest | (251 | ) | (139 | ) | |||
Net income attributable to HNI Corporation | $ | 12,829 | $ | 6,884 | |||
Net income attributable to HNI Corporation per common share – basic | $ | 0.28 | $ | 0.15 | |||
Average number of common shares outstanding – basic | 45,283,716 | 45,285,545 | |||||
Net income attributable to HNI Corporation per common share – diluted | $ | 0.28 | $ | 0.15 | |||
Average number of common shares outstanding – diluted | 45,891,246 | 45,814,296 | |||||
Cash dividends per common share | $ | 0.48 | $ | 0.47 | |||
Other comprehensive income, net of tax of 2013 $41; 2012 $(101) | (2,057 | ) | 46 | ||||
Comprehensive income | 10,521 | 6,791 | |||||
Less: Comprehensive (loss) attributable to noncontrolling interest | (251 | ) | (139 | ) | |||
Comprehensive income attributable to HNI Corporation | $ | 10,772 | $ | 6,930 |
HNI Corporation and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Six Months Ended | |||||||
June 29, 2013 | June 30, 2012 | ||||||
(In thousands) | |||||||
Net Cash Flows From (To) Operating Activities: | |||||||
Net income | $ | 12,578 | $ | 6,745 | |||
Noncash items included in net income: | |||||||
Depreciation and amortization | 22,838 | 21,358 | |||||
Other postretirement and post employment benefits | 713 | 839 | |||||
Stock-based compensation | 3,864 | 3,607 | |||||
Excess tax benefits from stock compensation | (2,114 | ) | (4,156 | ) | |||
Deferred income taxes | 5,673 | 1,672 | |||||
Loss on sale, retirement and impairment of long-lived assets and intangibles | 120 | 435 | |||||
Loss on sale of business | 2,177 | — | |||||
Stock issued to retirement plan | 5,352 | 4,864 | |||||
Other – net | 2,953 | 1,608 | |||||
Net increase (decrease) in operating assets and liabilities | (71,084 | ) | (35,208 | ) | |||
Increase (decrease) in other liabilities | 4,388 | 3,920 | |||||
Net cash flows from (to) operating activities | (12,542 | ) | 5,684 | ||||
Net Cash Flows From (To) Investing Activities: | |||||||
Capital expenditures | (30,552 | ) | (15,632 | ) | |||
Proceeds from sale of property, plant and equipment | 196 | 506 | |||||
Capitalized software | (8,754 | ) | (9,434 | ) | |||
Purchase of investments | (1,106 | ) | (3,191 | ) | |||
Sales or maturities of investments | 2,250 | 2,257 | |||||
Other – net | (578 | ) | (223 | ) | |||
Net cash flows from (to) investing activities | (38,544 | ) | (25,717 | ) | |||
Net Cash Flows From (To) Financing Activities: | |||||||
Proceeds from sales of HNI Corporation common stock | 6,440 | 2,641 | |||||
Withholdings related to net share settlements of equity based awards | (1,599 | ) | (5,995 | ) | |||
Purchase of HNI Corporation common stock | (7,711 | ) | (6,161 | ) | |||
Proceeds from long-term debt | 129,353 | 80,000 | |||||
Payments of note and long-term debt and other financing | (63,773 | ) | (50,981 | ) | |||
Excess tax benefits from stock compensation | 2,114 | 4,156 | |||||
Dividends paid | (21,769 | ) | (21,381 | ) | |||
Net cash flows from (to) financing activities | 43,055 | 2,279 | |||||
Net increase (decrease) in cash and cash equivalents | (8,031 | ) | (17,754 | ) | |||
Cash and cash equivalents at beginning of period | 41,782 | 72,812 | |||||
Cash and cash equivalents at end of period | $ | 33,751 | $ | 55,058 |
(In thousands) | June 29, 2013 | December 29, 2012 | ||||||
Finished products | $ | 72,715 | $ | 47,042 | ||||
Materials and work in process | 71,066 | 71,945 | ||||||
LIFO allowance | (25,472 | ) | (25,472 | ) | ||||
$ | 118,309 | $ | 93,515 |
(In thousands) | Foreign Currency Translation Adjustment | Unrealized Gains on Marketable Securities | Pension Postretirement Liability | Derivative Financial Instruments | Accumulated Other Comprehensive Income | |||||||||||||||
Balance at December 29, 2012 | $ | 5,475 | $ | 205 | $ | (4,291 | ) | $ | (76 | ) | $ | 1,313 | ||||||||
Other comprehensive income before reclassifications | (2,119 | ) | (125 | ) | — | 247 | (1,997 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | 74 | (134 | ) | (60 | ) | |||||||||||||
Balance at June 29, 2013 | $ | 3,356 | $ | 80 | $ | (4,217 | ) | $ | 37 | $ | (744 | ) |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||
Details about Accumulated Other Comprehensive Income Components | Three Months | Six Months | Affected Line Item in the Statement Where Net Income Is Presented | |||||||
Pension postretirement liability | ||||||||||
Transition obligation | $ | — | $ | (116 | ) | Selling and administrative expenses | ||||
— | 42 | Tax (expense) or benefit | ||||||||
$ | — | $ | (74 | ) | Net of tax | |||||
Derivative financial instruments | ||||||||||
Diesel hedge | $ | 95 | $ | 212 | Selling and administrative expenses | |||||
(36 | ) | (78 | ) | Tax (expense) or benefit | ||||||
$ | 59 | $ | 134 | Net of tax | ||||||
Total reclassifications for the period | $ | 59 | $ | 60 | Net of tax |
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands, except per share data) | June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Numerators: | ||||||||||||||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ | 11,421 | $ | 7,025 | $ | 12,829 | $ | 6,884 | ||||||||
Denominators: | ||||||||||||||||
Denominator for basic EPS weighted-average common shares outstanding | 45,413 | 45,420 | 45,284 | 45,286 | ||||||||||||
Potentially dilutive shares from stock-based compensation plans | 697 | 525 | 608 | 529 | ||||||||||||
Denominator for diluted EPS | 46,110 | 45,945 | 45,891 | 45,814 | ||||||||||||
Earnings per share – basic | $ | 0.25 | $ | 0.15 | $ | 0.28 | $ | 0.15 | ||||||||
Earnings per share – diluted | $ | 0.25 | $ | 0.15 | $ | 0.28 | $ | 0.15 |
(In thousands) | Severance | Facility Exit Costs & Other | Total | |||||||||
Balance as of December 29, 2012 | $ | 192 | $ | 18 | $ | 210 | ||||||
Restructuring charges | (3 | ) | 124 | 121 | ||||||||
Cash payments | (125 | ) | (137 | ) | (262 | ) | ||||||
Balance as of June 29, 2013 | $ | 64 | $ | 5 | $ | 69 |
(In thousands) | June 29, 2013 | December 29, 2012 | ||||||
Patents | $ | 18,905 | $ | 18,905 | ||||
Software | 44,880 | 36,126 | ||||||
Customer lists and other | 113,037 | 113,811 | ||||||
Less: accumulated amortization | 87,010 | 81,968 | ||||||
$ | 89,812 | $ | 86,874 |
(In millions) | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Amortization Expense | $ | 10.2 | $ | 8.9 | $ | 9.7 | $ | 9.2 | $ | 9.1 |
(In thousands) | Office Furniture | Hearth Products | Total | |||||||||
Balance as of December 29, 2012 | ||||||||||||
Goodwill | $ | 151,662 | $ | 166,188 | $ | 317,850 | ||||||
Accumulated impairment losses | (29,359 | ) | (143 | ) | (29,502 | ) | ||||||
122,303 | 166,045 | 288,348 | ||||||||||
Goodwill acquired | — | — | — | |||||||||
Foreign currency translation adjustments | (1,256 | ) | — | (1,256 | ) | |||||||
Balance as of June 29, 2013 | ||||||||||||
Goodwill | 150,406 | 166,188 | 316,594 | |||||||||
Accumulated impairment losses | (29,359 | ) | (143 | ) | (29,502 | ) | ||||||
$ | 121,047 | $ | 166,045 | $ | 287,092 |
Six Months Ended | ||||||||
(In thousands) | June 29, 2013 | June 30, 2012 | ||||||
Balance at beginning of period | $ | 13,055 | $ | 12,910 | ||||
Accruals for warranties issued during period | 9,564 | 8,856 | ||||||
Adjustments related to pre-existing warranties | 347 | 459 | ||||||
Settlements made during the period | (9,823 | ) | (9,342 | ) | ||||
Balance at end of period | $ | 13,143 | $ | 12,883 |
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands) | June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | ||||||||||||
Service cost | $ | 131 | $ | 113 | $ | 262 | $ | 225 | ||||||||
Interest cost | 167 | 180 | 334 | 360 | ||||||||||||
Amortization of transition obligation | — | 127 | 116 | 254 | ||||||||||||
Amortization of (gain)/loss | — | — | — | — | ||||||||||||
Net periodic benefit cost | $ | 298 | $ | 420 | $ | 712 | $ | 839 |
Asset (Liability) Fair Value | ||||||||||
Balance Sheet Location | June 29, 2013 | December 29, 2012 | ||||||||
Diesel fuel swap | Accounts payable and accrued expenses | $ | — | $ | (242 | ) | ||||
Diesel fuel swap | Prepaid expenses and other current assets | 61 | 123 | |||||||
$ | 61 | $ | (119 | ) |
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Diesel fuel swap | $ | 412 | Selling and administrative expenses | $ | 95 | Selling and administrative expenses | $ | (5 | ) | |||||||
Total | $ | 412 | $ | 95 | $ | (5 | ) |
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Diesel fuel swap | $ | 390 | Selling and administrative expenses | $ | 212 | Selling and administrative expenses | $ | (4 | ) | |||||||
Total | $ | 390 | $ | 212 | $ | (4 | ) |
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Diesel fuel swap | $ | (1,296 | ) | Selling and administrative expenses | $ | 105 | Selling and administrative expenses | $ | — | |||||||
Total | $ | (1,296 | ) | $ | 105 | $ | — |
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Diesel fuel swap | $ | (524 | ) | Selling and administrative expenses | $ | 81 | Selling and administrative expenses | $ | — | |||||||
Total | $ | (524 | ) | $ | 81 | $ | — |
(In thousands) | Fair value as of measurement date | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Government securities | $ | 13,800 | $ | — | $ | 13,800 | $ | — | ||||||||
Corporate bonds | $ | 5,158 | $ | — | $ | 5,158 | $ | — | ||||||||
Derivative financial instruments | $ | 61 | $ | — | $ | 61 | $ | — |
(In thousands) | Fair value as of measurement date | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||
Government securities | $ | 15,295 | $ | — | $ | 15,295 | $ | — | ||||||||
Corporate bonds | $ | 5,061 | $ | — | $ | 5,061 | $ | — | ||||||||
Derivative financial instruments | $ | (119 | ) | $ | — | $ | (119 | ) | $ | — |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | June 29, 2013 | June 30, 2012 | June 29, 2013 | June 30, 2012 | |||||||||||
Net Sales: | |||||||||||||||
Office Furniture | $ | 436,169 | $ | 418,562 | $ | 802,001 | $ | 797,166 | |||||||
Hearth Products | 74,529 | 61,838 | 150,994 | 128,446 | |||||||||||
$ | 510,698 | $ | 480,400 | $ | 952,995 | $ | 925,612 | ||||||||
Operating Profit: | |||||||||||||||
Office furniture | |||||||||||||||
Operations before restructuring charges | $ | 22,092 | $ | 22,350 | $ | 30,948 | $ | 31,102 | |||||||
Restructuring and impairment charges | 35 | (292 | ) | (121 | ) | (1,189 | ) | ||||||||
Office furniture – net | 22,127 | 22,058 | 30,827 | 29,913 | |||||||||||
Hearth products | 5,699 | 857 | 9,290 | 1,989 | |||||||||||
Total operating profit | 27,826 | 22,915 | 40,117 | 31,902 | |||||||||||
Unallocated corporate expense | (10,238 | ) | (12,182 | ) | (21,975 | ) | (21,408 | ) | |||||||
Income before income taxes | $ | 17,588 | $ | 10,733 | $ | 18,142 | $ | 10,494 | |||||||
Depreciation & Amortization Expense: | |||||||||||||||
Office furniture | $ | 9,304 | $ | 8,320 | $ | 18,127 | $ | 16,882 | |||||||
Hearth products | 1,372 | 1,500 | 2,765 | 3,065 | |||||||||||
General corporate | 1,073 | 716 | 1,946 | 1,411 | |||||||||||
$ | 11,749 | $ | 10,536 | $ | 22,838 | $ | 21,358 | ||||||||
Capital Expenditures (including capitalized software): | |||||||||||||||
Office furniture | $ | 15,533 | $ | 5,809 | $ | 26,177 | $ | 15,000 | |||||||
Hearth products | 1,176 | 577 | 2,233 | 953 | |||||||||||
General corporate | 6,553 | 5,862 | 10,896 | 9,113 | |||||||||||
$ | 23,262 | $ | 12,248 | $ | 39,306 | $ | 25,066 | ||||||||
As of | As of | ||||||||||||||
June 29, 2013 | June 30, 2012 | ||||||||||||||
Identifiable Assets: | |||||||||||||||
Office furniture | $ | 754,695 | $ | 692,732 | |||||||||||
Hearth products | 266,171 | 263,380 | |||||||||||||
General corporate | 124,011 | 119,526 | |||||||||||||
$ | 1,144,877 | $ | 1,075,638 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
(In thousands) | June 29, 2013 | June 30, 2012 | Percent Change | June 29, 2013 | June 30, 2012 | Percent Change | |||||||||||||||
Net sales | $ | 510,698 | $ | 480,400 | 6.3 | % | $ | 952,995 | $ | 925,612 | 3.0 | % | |||||||||
Cost of sales | 336,040 | 315,287 | 6.6 | % | 630,555 | 613,672 | 2.8 | % | |||||||||||||
Gross profit | 174,658 | 165,113 | 5.8 | % | 322,440 | 311,940 | 3.4 | % | |||||||||||||
Selling and administrative expenses | 154,538 | 151,455 | 2.0 | % | 299,094 | 295,189 | 1.3 | % | |||||||||||||
Restructuring and impairment charges | (35 | ) | 292 | (112.0 | )% | 121 | 1,189 | (89.8 | )% | ||||||||||||
Operating income | 20,155 | 13,366 | 50.8 | % | 23,225 | 15,562 | 49.2 | % | |||||||||||||
Interest expense, net | 2,567 | 2,633 | (2.5 | )% | 5,083 | 5,068 | 0.3 | % | |||||||||||||
Income before income taxes | 17,588 | 10,733 | 63.9 | % | 18,142 | 10,494 | 72.9 | % | |||||||||||||
Income taxes | 6,189 | 3,835 | 61.4 | % | 5,564 | 3,749 | 48.4 | % | |||||||||||||
Net income | $ | 11,399 | $ | 6,898 | 65.3 | % | $ | 12,578 | $ | 6,745 | 86.5 | % | |||||||||
• | a consolidated interest coverage ratio of not less than 4.0 to 1.0, based upon the ratio of (a) consolidated EBITDA (as defined in the Credit Agreement) for the last four fiscal quarters to (b) the sum of consolidated interest charges; and |
• | a consolidated leverage ratio of not greater than 3.0 to 1.0, based upon the ratio of (a) the quarter-end consolidated funded indebtedness (as defined in the Credit Agreement) to (b) consolidated EBITDA for the last four fiscal quarters; or |
• | a consolidated leverage ratio 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 following any qualifying debt financed acquisition. |
Period | (a) Total Number of Shares (or Units) Purchased (1) | (b) Average price Paid per Share or Unit | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet be Purchased Under the Plans or Programs | ||||||||||
03/31/13 – 04/27/13 | 10,000 | $ | 33.22 | 10,000 | $ | 112,591,943 | ||||||||
04/28/13 – 05/25/13 | 100,000 | $ | 35.04 | 100,000 | $ | 109,087,697 | ||||||||
05/26/13 – 06/29/13 | 55,000 | $ | 36.81 | 55,000 | $ | 107,063,123 | ||||||||
Total | 165,000 | $ | 35.52 | 165,000 |
• | Plan announced November 9, 2007, providing share repurchase authorization of $200,000,000 with no specific expiration date. |
• | No repurchase plans expired or were terminated during the second quarter of fiscal 2013, nor do any plans exist under which the Corporation does not intend to make further purchases. |
HNI Corporation | |||
Date: July 30, 2013 | By: | /s/ Kurt A. Tjaden | |
Kurt A. Tjaden | |||
Vice President and Chief Financial Officer |
EXHIBIT INDEX | |
(10.1) | HNI Corporation 2007 Stock-Based Compensation Plan, as amended, incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed May 9, 2013 |
(31.1) | Certification of the CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
(31.2) | Certification of the CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
(32.1) | Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101 | The following materials from HNI Corporation's Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2013 formatted in XBRL (eXtensible Business Reporting Language) and furnished electronically herewith: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Comprehensive Income; (iii) Condensed Consolidated Statements of Cash Flows; and (iv) Notes to Condensed Consolidated Financial Statements(a) |
(a) | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
Date: July 30, 2013 | By: | /s/ Stan A. Askren |
Name: Stan A. Askren | ||
Title: Chairman, President and Chief Executive Officer |
Date: July 30, 2013 | By: | /s/ Kurt A. Tjaden |
Name: Kurt A. Tjaden | ||
Title: Vice President and Chief Financial Officer |
By: | /s/ Stan A. Askren | ||
Name: Stan A. Askren | |||
Title: Chairman, President and Chief Executive Officer | |||
Date: July 30, 2013 |
By: | /s/ Kurt A. Tjaden | ||
Name: Kurt A. Tjaden | |||
Title: Vice President and Chief Financial Officer | |||
Date: July 30, 2013 |
Derivative Financial Instruments
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Corporation uses derivative financial instruments to reduce its exposure to adverse fluctuations in diesel fuel prices. On the date a derivative is entered into, the Corporation designates the derivative as (i) a fair value hedge, (ii) a cash flow hedge, (iii) a hedge of a net investment in a foreign operation or (iv) a risk management instrument not designated for hedge accounting. The Corporation recognizes all derivatives on its Condensed Consolidated Balance Sheets at fair value. Diesel Fuel Risk The Corporation uses independent freight carriers to deliver its products. These carriers charge the Corporation a basic rate per mile that is subject to a mileage surcharge for diesel fuel price increases. The Corporation enters into variable to fixed rate commodity swap agreements with two financial counterparties to manage fluctuations in fuel costs. The Corporation hedges approximately 50% of its diesel fuel surcharge exposure for the next twelve months. The Corporation uses the hedge agreements to mitigate the volatility of diesel fuel prices and related fuel surcharges, and not to speculate on the future price of diesel fuel. The hedge agreements are designed to add stability to the Corporation's costs, enabling the Corporation to make pricing decisions and lessen the economic impact of abrupt changes in diesel fuel prices over the term of the contract. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to twelve months. The contracts have been designated as cash flow hedges of future diesel purchases, and as such, the net amount paid or received upon monthly settlements is recorded as an adjustment to freight expense, while the effective change in fair value is recorded as a component of accumulated other comprehensive income in the equity section of the Corporation's Condensed Consolidated Balance Sheets. As of June 29, 2013, $0.0 million of deferred net gains, net of tax, included in equity ("Accumulated other comprehensive income" in the Corporation's Condensed Consolidated Balance Sheets) related to the diesel hedge agreements are expected to be reclassified to current earnings ("Selling and administrative expenses" in the Corporation's Condensed Consolidated Statements of Comprehensive Income) over the next twelve months. The location and fair value of derivative instruments reported in the Corporation's Condensed Consolidated Balance Sheets are as follows (in thousands):
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 29, 2013 was as follows (in thousands):
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 29, 2013 was as follows (in thousands):
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 30, 2012 was as follows (in thousands):
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 30, 2012 was as follows (in thousands):
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Income Statement [Abstract] | ||||
Net sales | $ 510,698 | $ 480,400 | $ 952,995 | $ 925,612 |
Cost of sales | 336,040 | 315,287 | 630,555 | 613,672 |
Gross profit | 174,658 | 165,113 | 322,440 | 311,940 |
Selling and administrative expenses | 154,538 | 151,455 | 299,094 | 295,189 |
Restructuring and impairment | (35) | 292 | 121 | 1,189 |
Operating income | 20,155 | 13,366 | 23,225 | 15,562 |
Interest income | 158 | 276 | 310 | 455 |
Interest expense | 2,725 | 2,909 | 5,393 | 5,523 |
Income before income taxes | 17,588 | 10,733 | 18,142 | 10,494 |
Income taxes | 6,189 | 3,835 | 5,564 | 3,749 |
Net income | 11,399 | 6,898 | 12,578 | 6,745 |
Less: Net (loss) attributable to the noncontrolling interest | (22) | (127) | (251) | (139) |
Net income attributable to HNI Corporation | 11,421 | 7,025 | 12,829 | 6,884 |
Net income attributable to HNI Corporation per common share - basic | $ 0.25 | $ 0.15 | $ 0.28 | $ 0.15 |
Average number of common shares outstanding - basic | 45,412,668 | 45,419,564 | 45,283,716 | 45,285,545 |
Net income attributable to HNI Corporation per common share - diluted | $ 0.25 | $ 0.15 | $ 0.28 | $ 0.15 |
Average number of common shares outstanding - diluted | 46,109,563 | 45,944,815 | 45,891,246 | 45,814,296 |
Cash dividends per common share | $ 0.24 | $ 0.24 | $ 0.48 | $ 0.47 |
Other comprehensive income, net of tax | (2,086) | (831) | (2,057) | 46 |
Comprehensive income | 9,313 | 6,067 | 10,521 | 6,791 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | (22) | (127) | (251) | (139) |
Comprehensive income attributable to HNI Corporation | $ 9,335 | $ 6,194 | $ 10,772 | $ 6,930 |
Accumulated Other Comprehensive Income and Shareholders' Equity
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income and Shareholders' Equity | Accumulated Other Comprehensive Income and Shareholders' Equity The following table summarizes the components of accumulated other comprehensive income and the changes in accumulated other comprehensive income, net of tax, as applicable for the six months ended June 29, 2013:
All amounts are net-of tax. Amounts in parentheses indicate debits. The following table details the reclassifications from accumulated other comprehensive income for the six months ended June 29, 2013 (in thousands):
Amounts in parentheses indicate reductions to profit. During the six months ended June 29, 2013, the Corporation repurchased 223,100 shares of its common stock at a cost of approximately $7.7 million. As of June 29, 2013, $107.1 million of the Corporation's Board of Directors' current repurchase authorization remained unspent. During the six months ended June 29, 2013, the Corporation paid dividends to shareholders of $0.48 per share. |
Accumulated Other Comprehensive Income and Shareholders' Equity (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income and Changes in Accumulated Other Comprehensive Income, Net of Tax | The following table summarizes the components of accumulated other comprehensive income and the changes in accumulated other comprehensive income, net of tax, as applicable for the six months ended June 29, 2013:
All amounts are net-of tax. Amounts in parentheses indicate debits. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reclassification from Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income for the six months ended June 29, 2013 (in thousands):
Amounts in parentheses indicate reductions to profit. |
Fair Value Measurements
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements For recognition purposes, on a recurring basis the Corporation is required to measure at fair value its marketable securities and derivative instruments. The marketable securities were comprised of government securities, corporate bonds and money market funds. When available the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges/indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Assets measured at fair value as of June 29, 2013 were as follows:
Assets and (liabilities) measured at fair value as of December 29, 2012 were as follows:
In addition to the methods and assumptions the Corporation uses to record the fair value of financial instruments as discussed in the section above, it uses the following methods and assumptions to estimate the fair value of its financial instruments. Cash and cash equivalents - Level 1 The carrying amount approximated fair value and includes money market funds. Long-term debt (including current portion) - Level 2 The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at June 29, 2013 and December 29, 2012, the end of the Corporation's 2012 fiscal year, approximated the fair value. The fair value of the Corporation's outstanding fixed-rate, long-term debt obligations is estimated based on discounted cash flow method to be $159 million at June 29, 2013 and $161 million at December 29, 2012, compared to the carrying value of $150 million. |
Fair Value Measurements (Long-term Debt) (Details) (USD $)
|
Jun. 29, 2013
|
Dec. 29, 2012
|
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 150,118,000 | $ 150,146,000 |
Fixed Rate Debt Instruments [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 159,000,000 | 161,000,000 |
Long-term debt | $ 150,000,000 | $ 150,000,000 |
Earnings Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Numerators: | ||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 11,421 | $ 7,025 | $ 12,829 | $ 6,884 |
Denominators: | ||||
Denominator for basic EPS weighted-average common shares outstanding | 45,412,668 | 45,419,564 | 45,283,716 | 45,285,545 |
Potentially dilutive shares from stock-based compensation plans | 697,000 | 525,000 | 608,000 | 529,000 |
Denominator for diluted EPS | 46,109,563 | 45,944,815 | 45,891,246 | 45,814,296 |
Earnings per share - basic | $ 0.25 | $ 0.15 | $ 0.28 | $ 0.15 |
Earnings per share - diluted | $ 0.25 | $ 0.15 | $ 0.28 | $ 0.15 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 880,657 | 1,936,382 | 1,303,625 | 1,871,937 |
Goodwill and Other Intangible Assets(Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | The table below summarizes amortizable definite-lived intangible assets as of June 29, 2013 and December 29, 2012, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expected Amortization Expense Table | Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill since December 29, 2012 are as follows by reporting segment:
|
Restructuring Reserve and Plant Closures (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following is a summary of changes in restructuring accruals during the six months ended June 29, 2013.
|
Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
|
Dec. 29, 2012
|
---|---|---|
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 72.00% | |
Inventory, Net [Abstract] | ||
Finished products | $ 72,715 | $ 47,042 |
Materials and work in process | 71,066 | 71,945 |
LIFO allowance | (25,472) | (25,472) |
Inventories | $ 118,309 | $ 93,515 |
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 29, 2013
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit used to back insurance policies and other obligations | $ 12 |
Fair Value Measurements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis | Assets measured at fair value as of June 29, 2013 were as follows:
Assets and (liabilities) measured at fair value as of December 29, 2012 were as follows:
|
Postretirement Health Care (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 131 | $ 113 | $ 262 | $ 225 |
Interest cost | 167 | 180 | 334 | 360 |
Amortization of transition obligation | 0 | 127 | 116 | 254 |
Amortization of (gain)/loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 298 | $ 420 | $ 712 | $ 839 |
Earnings Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Basic and Diluted Table | The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"):
|
Stock-Based Compensation
|
6 Months Ended |
---|---|
Jun. 29, 2013
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employee requisite service period. For the three and six months ended June 29, 2013, and June 30, 2012, the Corporation recognized $1.6 million and $3.9 million, and $1.4 million and $3.6 million, respectively, of stock-based compensation expense for the cost of stock options and time-based restricted stock units issued under the HNI Corporation 2007 Stock-Based Compensation Plan and shares issued under the HNI Corporation 2002 Members' Stock Purchase Plan. At June 29, 2013, there was $10.7 million of unrecognized compensation cost related to nonvested stock-based compensation awards, which the Corporation expects to recognize over a weighted-average remaining service period of 1.2 years. |
Earnings Per Share
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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"):
The weighted average common stock equivalents presented above do not include the effect of 880,657 and 1,303,625 and 1,936,382 and 1,871,937 common stock equivalents for the three and six months ended June 29, 2013 and June 30, 2012, respectively, because their inclusion would be anti-dilutive. |
Inventories
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method.
|
Product Warranties (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability Table | Activity associated with warranty obligations was as follows during the periods noted:
|
Business Segment Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three and six month periods ended June 29, 2013, and June 30, 2012, is as follows:
|
Accumulated Other Comprehensive Income and Shareholders' Equity Accumulated Other Comprehensive Income and Shareholders' Equity (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
Schedule of Shareholders' Equity [Line Items] | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 107.1 | |||
Cash dividends per common share | $ 0.24 | $ 0.24 | $ 0.48 | $ 0.47 |
Common Stock [Member]
|
||||
Schedule of Shareholders' Equity [Line Items] | ||||
Repurchased common stock, shares | 223,100 | |||
Repurchased common stock, value | $ 7.7 |