UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | |||||||||||||||||||||||||||||||||||
FORM | |||||||||||||||||||||||||||||||||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||||||||||||||||||||
For the fiscal year ended | |||||||||||||||||||||||||||||||||||
OR | |||||||||||||||||||||||||||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||||||||||||||||||||
Commission File Number: | |||||||||||||||||||||||||||||||||||
(State of Incorporation) | (I.R.S. Employer No.) | ||||||||||||||||||||||||||||||||||
, | |||||||||||||||||||||||||||||||||||
( | ) | ||||||||||||||||||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||||||||||||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||||||||||||||||||||
Securities registered pursuant to Section 12(g) of the Act: None. | |||||||||||||||||||||||||||||||||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | |||||||||||||||||||||||||||||||||||
☒ | No | ☐ | |||||||||||||||||||||||||||||||||
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | |||||||||||||||||||||||||||||||||||
Yes | ☐ | ☒ | |||||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||||||
☒ | No | ☐ | |||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). | |||||||||||||||||||||||||||||||||||
☒ | No | ☐ | |||||||||||||||||||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. | |||||||||||||||||||||||||||||||||||
☒ | Accelerated filer | ☐ | |||||||||||||||||||||||||||||||||
Smaller reporting company | Non-accelerated filer | ☐ | |||||||||||||||||||||||||||||||||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | ||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | ||||||||||||||
Yes | No | ☒ |
HNI Corporation and Subsidiaries | ||||||||
Annual Report on Form 10-K | ||||||||
Table of Contents | ||||||||
PART I | ||||||||
Page | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
2020 | 2019 | 2018 | |||||||||||||||
Research and development investments | $ | 35,318 | $ | 34,699 | $ | 33,420 |
Location | Approximate Square Feet | Owned or Leased | Description of Use | |||||||||||||||||
Cedartown, Georgia | 550,000 | Owned | Manufacturing workplace furnishings (1) | |||||||||||||||||
Dongguan, China | 373,000 | Leased | Manufacturing workplace furnishings (1) | |||||||||||||||||
Garland, Texas | 211,000 | Leased | Warehousing workplace furnishings | |||||||||||||||||
Hickory, North Carolina | 206,000 | Owned | Manufacturing workplace furnishings (1) | |||||||||||||||||
Lake City, Minnesota | 242,000 | Owned | Manufacturing residential building products | |||||||||||||||||
Mechanicsburg, Pennsylvania | 252,000 | Leased | Warehousing workplace furnishings | |||||||||||||||||
Mt. Pleasant, Iowa | 378,000 | Owned | Manufacturing residential building products (1) | |||||||||||||||||
Muscatine, Iowa | 273,000 | Owned | Manufacturing workplace furnishings | |||||||||||||||||
Muscatine, Iowa | 540,000 | Owned | Manufacturing workplace furnishings (1) | |||||||||||||||||
Muscatine, Iowa | 810,000 | Owned | Manufacturing workplace furnishings (1) | |||||||||||||||||
Muscatine, Iowa | 238,000 | Owned | Manufacturing workplace furnishings | |||||||||||||||||
Nagpur, India | 355,000 | Owned | Manufacturing workplace furnishings | |||||||||||||||||
Wayland, New York | 716,000 | Owned | Manufacturing workplace furnishings (1) |
Name | Age | Family Relationship | Position | Position Held Since | Other Business Experience During Past Five Years | |||||||||||||||||||||||||||
Vincent P. Berger | 48 | None | Executive Vice President, HNI Corporation President, Hearth & Home Technologies | 2018 2016 | Senior Vice President, Sales and Operations, Hearth & Home Technologies (2014-2016) | |||||||||||||||||||||||||||
Steven M. Bradford | 63 | None | Senior Vice President, General Counsel and Secretary | 2015 | ||||||||||||||||||||||||||||
Marshall H. Bridges | 51 | None | Senior Vice President and Chief Financial Officer | 2018 | Vice President and Chief Financial Officer (2017-2018); Vice President, Finance, HNI Contract Furniture Group (2014-2017) | |||||||||||||||||||||||||||
B. Brandon Bullock | 43 | None | President, The HON Company | 2018 | Advanced Development and Innovation Leader, Whirlpool Corporation (2017-2018); Global Platform Leader and General Manager, Microwaves, Hong Kong, Whirlpool Corporation (2016-2017); General Manager, Air and Water Platforms, Whirlpool Corporation (2014-2016) | |||||||||||||||||||||||||||
Jason D. Hagedorn | 47 | None | President, Allsteel, Inc. | 2020 | VP & GM, Product Strategy and Finance, HNI Corporation (2017-2020); VP, Product Management & Development, Allsteel (2015-2017) | |||||||||||||||||||||||||||
Jeffrey D. Lorenger | 55 | None | Chairman President and Chief Executive Officer | 2020 2017 | President, Office Furniture, HNI Corporation (2017-2018); Executive Vice President, HNI Corporation (2014-2017); President, HNI Contract Furniture Group (2014-2017) | |||||||||||||||||||||||||||
Donna D. Meade | 55 | None | Vice President, Member and Community Relations | 2014 | ||||||||||||||||||||||||||||
Kurt A. Tjaden | 57 | None | President, HNI International Senior Vice President, HNI Corporation | 2017 2015 | Senior Vice President and Chief Financial Officer (2015-2017) |
2020 | 2019 | Change | |||||||||||||||
Net sales | $ | 1,955,363 | $ | 2,246,947 | (13.0) | % | |||||||||||
Cost of sales | 1,234,243 | 1,413,185 | (12.7) | % | |||||||||||||
Gross profit | 721,120 | 833,762 | (13.5) | % | |||||||||||||
Selling and administrative expenses | 620,927 | 680,049 | (8.7) | % | |||||||||||||
Restructuring and impairment charges | 38,818 | 2,371 | NM | ||||||||||||||
Operating income | 61,375 | 151,342 | (59.4) | % | |||||||||||||
Interest expense, net | 6,990 | 8,628 | (19.0) | % | |||||||||||||
Income before income taxes | 54,385 | 142,714 | (61.9) | % | |||||||||||||
Income tax expense | 12,466 | 32,211 | (61.3) | % | |||||||||||||
Net income (loss) attributable to non-controlling interest | 2 | (2) | 200.0 | % | |||||||||||||
Net income attributable to HNI Corporation | $ | 41,917 | $ | 110,505 | (62.1) | % |
As a Percentage of Net Sales: | |||||||||||||||||
Net sales | 100.0 | % | 100.0 | % | |||||||||||||
Gross profit | 36.9 | 37.1 | -20 | bps | |||||||||||||
Selling and administrative expenses | 31.8 | 30.3 | 150 | bps | |||||||||||||
Restructuring and impairment charges | 2.0 | 0.1 | 190 | bps | |||||||||||||
Operating income | 3.1 | 6.7 | -360 | bps | |||||||||||||
Income tax expense | 0.6 | 1.4 | -80 | bps | |||||||||||||
Net income attributable to HNI Corporation | 2.1 | 4.9 | -280 | bps |
2020 | 2019 | ||||||||||
Income before income taxes | $ | 54,385 | $ | 142,714 | |||||||
Income tax expense | $ | 12,466 | $ | 32,211 | |||||||
Effective tax rate | 22.9 | % | 22.6 | % |
2020 | 2019 | Change | |||||||||||||||
Net sales | $ | 1,365,711 | $ | 1,697,186 | (19.5)% | ||||||||||||
Operating profit (loss) | $ | (4,972) | $ | 103,894 | (104.8)% | ||||||||||||
Operating profit (loss) % | (0.4) | % | 6.1 | % | -650 | bps |
2020 | 2019 | Change | |||||||||||||||
Net sales | $ | 589,652 | $ | 549,761 | 7.3 | % | |||||||||||
Operating profit | $ | 109,321 | $ | 94,329 | 15.9 | % | |||||||||||
Operating profit % | 18.5 | % | 17.2 | % | 130 | bps |
2020 | 2019 | ||||||||||
Common shares | $ | 1.22 | $ | 1.21 |
Less than 1 Year | 1 – 3 Years | 3 – 5 Years | More than 5 Years | Total | |||||||||||||||||||||||||
Long-term debt obligations, including estimated interest (1) | $ | 7,056 | $ | 86,192 | $ | 57,389 | $ | 55,317 | $ | 205,954 | |||||||||||||||||||
Finance lease obligations | 1,696 | 2,869 | 1,784 | — | 6,349 | ||||||||||||||||||||||||
Operating lease obligations | 22,292 | 29,499 | 16,397 | 12,403 | 80,591 | ||||||||||||||||||||||||
Purchase obligations (2) | 65,280 | 4,429 | 1,895 | 1,554 | 73,158 | ||||||||||||||||||||||||
Other long-term obligations (3) | 2,990 | 17,794 | 2,840 | 24,716 | 48,340 | ||||||||||||||||||||||||
Total | $ | 99,314 | $ | 140,783 | $ | 80,305 | $ | 93,990 | $ | 414,392 |
Page | |||||
(3.1) | |||||
(3.2) | |||||
(4.1) | |||||
(10.1) | |||||
(10.2) | |||||
(10.3) | |||||
(10.4) | |||||
(10.5) | |||||
(10.6) | |||||
(10.7) |
(10.8) | |||||
(10.9) | |||||
(10.10) | |||||
(10.11) | |||||
(10.12) | |||||
(10.13) | |||||
(10.14) | |||||
(10.15) | |||||
(10.16) | |||||
(10.17) | |||||
(10.18) | |||||
(10.19) | |||||
(10.20) | |||||
(10.22) | |||||
(10.23) | |||||
(10.24) |
(21) | |||||
(23.1) | |||||
(24) | Powers of Attorney (included on the signatures page of this Annual Report on Form 10-K) | ||||
(31.1) | |||||
(31.2) | |||||
(32.1) | |||||
(101) | The following materials from HNI Corporation's Annual Report on Form 10-K for the fiscal year ended January 2, 2021 are formatted in Inline XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) Consolidated Statements of Comprehensive Income; (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements | ||||
(104) | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
HNI Corporation | |||||||||||
Date: March 2, 2021 | By: | /s/ Jeffrey D. Lorenger | |||||||||
Name: Jeffrey D. Lorenger | |||||||||||
Title: Chairman, President, and Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ Jeffrey D. Lorenger | Chairman, President, and Chief Executive Officer, Principal Executive Officer, and Director | March 2, 2021 | ||||||||||||
Jeffrey D. Lorenger | ||||||||||||||
/s/ Marshall H. Bridges | Senior Vice President, Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer | March 2, 2021 | ||||||||||||
Marshall H. Bridges | ||||||||||||||
/s/ Mary A. Bell | Director | March 2, 2021 | ||||||||||||
Mary A. Bell | ||||||||||||||
/s/ Miguel M. Calado | Director | March 2, 2021 | ||||||||||||
Miguel M. Calado | ||||||||||||||
/s/ Cheryl A. Francis | Director | March 2, 2021 | ||||||||||||
Cheryl A. Francis | ||||||||||||||
/s/ John R. Hartnett | Director | March 2, 2021 | ||||||||||||
John R. Hartnett | ||||||||||||||
/s/ Mary K. W. Jones | Director | March 2, 2021 | ||||||||||||
Mary K. W. Jones | ||||||||||||||
/s/ Larry B. Porcellato | Lead Director | March 2, 2021 | ||||||||||||
Larry B. Porcellato | ||||||||||||||
/s/ Dhanusha Sivajee | Director | March 2, 2021 | ||||||||||||
Dhanusha Sivajee | ||||||||||||||
/s/ Abbie J. Smith | Director | March 2, 2021 | ||||||||||||
Abbie J. Smith | ||||||||||||||
/s/ Ronald V. Waters, III | Director | March 2, 2021 | ||||||||||||
Ronald V. Waters, III |
HNI Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (In thousands, except per share data) | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | $ | $ | ||||||||||||||
Cost of sales | |||||||||||||||||
Gross profit | |||||||||||||||||
Selling and administrative expenses | |||||||||||||||||
Restructuring and impairment charges | |||||||||||||||||
Operating income | |||||||||||||||||
Interest expense, net | |||||||||||||||||
Income before income taxes | |||||||||||||||||
Income tax expense | |||||||||||||||||
Net income | |||||||||||||||||
Less: Net income (loss) attributable to non-controlling interest | ( | ( | |||||||||||||||
Net income attributable to HNI Corporation | $ | $ | $ | ||||||||||||||
Average number of common shares outstanding – basic | |||||||||||||||||
Net income attributable to HNI Corporation per common share – basic | $ | $ | $ | ||||||||||||||
Average number of common shares outstanding – diluted | |||||||||||||||||
Net income attributable to HNI Corporation per common share – diluted | $ | $ | $ | ||||||||||||||
Foreign currency translation adjustments | $ | $ | $ | ( | |||||||||||||
Change in unrealized gains (losses) on marketable securities, net of tax | ( | ||||||||||||||||
Change in pension and post-retirement liability, net of tax | ( | ( | |||||||||||||||
Change in derivative financial instruments, net of tax | ( | ( | |||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||
Comprehensive income | |||||||||||||||||
Less: Comprehensive income (loss) attributable to non-controlling interest | ( | ( | |||||||||||||||
Comprehensive income attributable to HNI Corporation | $ | $ | $ |
HNI Corporation and Subsidiaries Consolidated Balance Sheets (In thousands) | |||||||||||
January 2, 2021 | December 28, 2019 | ||||||||||
Assets | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Receivables | |||||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total Current Assets | |||||||||||
Property, Plant, and Equipment: | |||||||||||
Land and land improvements | |||||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Construction in progress | |||||||||||
Less accumulated depreciation | |||||||||||
Net Property, Plant, and Equipment | |||||||||||
Right-of-use - Finance Leases | |||||||||||
Right-of-use - Operating Leases | |||||||||||
Goodwill and Other Intangible Assets | |||||||||||
Deferred Income Taxes | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ |
HNI Corporation and Subsidiaries Consolidated Balance Sheets (In thousands, except par value) | |||||||||||
January 2, 2021 | December 28, 2019 | ||||||||||
Liabilities and Equity | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Current maturities of long-term debt | |||||||||||
Current maturities of other long-term obligations | |||||||||||
Current lease obligations - Finance | |||||||||||
Current lease obligations - Operating | |||||||||||
Total Current Liabilities | |||||||||||
Long-Term Debt | |||||||||||
Long-Term Lease Obligations - Finance | |||||||||||
Long-Term Lease Obligations - Operating | |||||||||||
Other Long-Term Liabilities | |||||||||||
Deferred Income Taxes | |||||||||||
Equity: | |||||||||||
HNI Corporation shareholders' equity: | |||||||||||
Capital Stock: | |||||||||||
Preferred stock - $ | |||||||||||
Common stock - $ | |||||||||||
January 2, 2021 - | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss) | ( | ( | |||||||||
Total HNI Corporation shareholders' equity | |||||||||||
Non-controlling interest | |||||||||||
Total Equity | |||||||||||
Total Liabilities and Equity | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance, December 30, 2017 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Change in ownership of non-controlling interest | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||
Cash dividends; $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Common shares – treasury: | |||||||||||||||||||||||||||||||||||
Shares purchased | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | — | — | — | ||||||||||||||||||||||||||||||||
Balance, December 29, 2018 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | |||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Reclassification of Stranded Tax Effects (ASU 2018-02) | — | — | ( | — | |||||||||||||||||||||||||||||||
Impact of Implementation of Lease Guidance | — | — | — | — | |||||||||||||||||||||||||||||||
Cash dividends; $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Common shares – treasury: | |||||||||||||||||||||||||||||||||||
Shares purchased | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | — | — | — | ||||||||||||||||||||||||||||||||
Balance, December 28, 2019 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Comprehensive income: | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
— | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Dividends payable | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Cash dividends; $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Common shares – treasury: | |||||||||||||||||||||||||||||||||||
Shares purchased | ( | ( | ( | — | — | ( | |||||||||||||||||||||||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | — | — | — | ||||||||||||||||||||||||||||||||
Balance, January 2, 2021 | $ | $ | $ | $ | ( | $ | $ |
HNI Corporation and Subsidiaries Consolidated Statements of Cash Flows (In thousands) | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Cash Flows From (To) Operating Activities: | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Non-cash items included in net income: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Other post-retirement and post-employment benefits | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
Reduction in carrying amount of right-of-use assets | |||||||||||||||||
Deferred income taxes | ( | ||||||||||||||||
Impairment of goodwill and intangible assets | |||||||||||||||||
Other – net | |||||||||||||||||
Net increase (decrease) in operating assets and liabilities, net of divestitures | ( | ( | |||||||||||||||
Increase (decrease) in other liabilities | ( | ||||||||||||||||
Net cash flows from (to) operating activities | |||||||||||||||||
Net Cash Flows From (To) Investing Activities: | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Proceeds from sale of property, plant, and equipment | |||||||||||||||||
Acquisition spending, net of cash acquired | ( | ( | |||||||||||||||
Capitalized software | ( | ( | ( | ||||||||||||||
Purchase of investments | ( | ( | ( | ||||||||||||||
Sales or maturities of investments | |||||||||||||||||
Other – net | |||||||||||||||||
Net cash flows from (to) investing activities | ( | ( | ( | ||||||||||||||
Net Cash Flows From (To) Financing Activities: | |||||||||||||||||
Payments of long-term debt | ( | ( | ( | ||||||||||||||
Proceeds from long-term debt | |||||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||
Purchase of HNI Corporation common stock | ( | ( | ( | ||||||||||||||
Proceeds from sales of HNI Corporation common stock | |||||||||||||||||
Other – net | ( | ( | |||||||||||||||
Net cash flows from (to) financing activities | ( | ( | ( | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Short-term investments | Other Assets | Cash and cash equivalents | Short-term investments | Other Assets | ||||||||||||||||||||||||||||||
Debt securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Equity investment | |||||||||||||||||||||||||||||||||||
Cash and money market accounts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Amortized cost basis of debt securities | $ | $ |
Balance at beginning of period | Current period provision | Amounts written off | Recoveries and other adjustments | Balance at end of period | ||||||||||||||||||||||||||||
Year ended January 2, 2021 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Year ended December 28, 2019 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
Year ended December 29, 2018 | $ | $ | $ | ( | $ | ( | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Finished products | $ | $ | |||||||||
Materials and work in process | |||||||||||
Last-in, first-out ("LIFO") allowance | ( | ( | |||||||||
Total inventories | $ | $ | |||||||||
Inventory valued by the LIFO costing method | % | % |
2020 | 2019 | 2018 | |||||||||||||||
Depreciation expense | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Trade accounts payable | $ | $ | |||||||||
Compensation | |||||||||||
Profit sharing and retirement expense | |||||||||||
Marketing expenses | |||||||||||
Freight | |||||||||||
Customer deposits | |||||||||||
Other accrued expenses | |||||||||||
$ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of period | $ | $ | $ | ||||||||||||||
Accruals for warranties issued during period | |||||||||||||||||
Adjustments related to pre-existing warranties | |||||||||||||||||
Settlements made during the period | ( | ( | ( | ||||||||||||||
Balance at end of period | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Current - in the next twelve months | $ | $ | |||||||||
Long-term - beyond one year | |||||||||||
$ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Research and development costs | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Freight expense | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Numerator: | |||||||||||||||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ | $ | $ | ||||||||||||||
Denominators: | |||||||||||||||||
Denominator for basic EPS weighted-average common shares outstanding | |||||||||||||||||
Potentially dilutive shares from stock-based compensation plans | |||||||||||||||||
Denominator for diluted EPS | |||||||||||||||||
Earnings per share – basic | $ | $ | $ | ||||||||||||||
Earnings per share – diluted | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Common stock equivalents excluded because their inclusion would be anti-dilutive |
January 2, 2021 | December 28, 2019 | ||||||||||
General, auto, product, and workers' compensation liabilities | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Systems and storage | $ | $ | $ | ||||||||||||||
Seating | |||||||||||||||||
Other | |||||||||||||||||
Total workplace furnishings | |||||||||||||||||
Residential building products | |||||||||||||||||
$ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Trade receivables (1) | $ | $ | |||||||||
Contract assets (current) (2) | $ | $ | |||||||||
Contract assets (long-term) (3) | $ | $ | |||||||||
Contract liabilities (4) | $ | $ |
Contract assets increase (decrease) | Contract liabilities (increase) decrease | ||||||||||
Contract assets recognized | $ | $ | — | ||||||||
Reclassification of contract assets to contra-revenue | ( | — | |||||||||
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied | — | ( | |||||||||
Contract liabilities paid | — | ||||||||||
Cash received in advance and not recognized as revenue | — | ( | |||||||||
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied | — | ||||||||||
Impact of business acquisition | — | ( | |||||||||
Net change | $ | ( | $ |
Contract assets increase (decrease) | Contract liabilities (increase) decrease | ||||||||||
Contract assets recognized | $ | $ | — | ||||||||
Reclassification of contract assets to contra-revenue | ( | — | |||||||||
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied | — | ( | |||||||||
Contract liabilities paid | — | ||||||||||
Cash received in advance and not recognized as revenue | — | ( | |||||||||
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied | — | ||||||||||
Net change | $ | $ | ( |
Fair Value | Weighted Average Amortization Period | |||||||
Inventories | $ | |||||||
Prepaid expenses and other current assets | ||||||||
Accounts payable and accrued expenses | ( | |||||||
Goodwill | ||||||||
Customer lists | ||||||||
Software | ||||||||
Trade names | ||||||||
Other intangible assets | ||||||||
Total net assets | $ |
2020 | 2019 | 2018 | |||||||||||||||
Cash paid for: | |||||||||||||||||
Interest, net of capitalized interest | $ | $ | $ | ||||||||||||||
Income taxes | $ | $ | $ | ||||||||||||||
Changes in accrued expenses due to: | |||||||||||||||||
Purchases of property and equipment | $ | $ | ( | $ | |||||||||||||
Purchases of capitalized software | $ | $ | $ | ( |
January 2, 2021 | December 28, 2019 | ||||||||||
Goodwill | $ | $ | |||||||||
Definite-lived intangible assets | |||||||||||
Indefinite-lived intangible assets | |||||||||||
Total goodwill and other intangible assets | $ | $ |
Workplace Furnishings | Residential Building Products | Total | |||||||||||||||
Balance as of December 29, 2018 | |||||||||||||||||
Goodwill | $ | $ | $ | ||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||
Net goodwill balance as of December 29, 2018 | $ | $ | $ | ||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||
Balance as of December 28, 2019 | |||||||||||||||||
Goodwill | |||||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||
Net goodwill balance as of December 28, 2019 | $ | $ | $ | ||||||||||||||
Goodwill acquired during the year | |||||||||||||||||
Impairment losses | ( | ( | |||||||||||||||
Balance as of January 2, 2021 | |||||||||||||||||
Goodwill | |||||||||||||||||
Accumulated impairment losses | ( | ( | ( | ||||||||||||||
Net goodwill balance as of January 2, 2021 | $ | $ | $ |
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||
Patents | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Software | ||||||||||||||||||||||||||||||||||||||
Trademarks and trade names | ||||||||||||||||||||||||||||||||||||||
Customer lists and other | ||||||||||||||||||||||||||||||||||||||
Net definite-lived intangible assets | $ | $ | $ | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Capitalized software | $ | $ | $ | ||||||||||||||
Other definite-lived intangibles | $ | $ | $ |
2021 | 2022 | 2023 | 2024 | 2025 | |||||||||||||||||||||||||
Amortization expense | $ | $ | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Trademarks and trade names | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Revolving credit facility with interest at a variable rate (January 2, 2021 - | $ | $ | |||||||||
Fixed rate notes due in 2025 with an interest rate of | |||||||||||
Fixed rate notes due in 2028 with an interest rate of | |||||||||||
Other amounts | |||||||||||
Deferred debt issuance costs | ( | ( | |||||||||
Total debt | |||||||||||
Less: Current maturities | |||||||||||
Long-term debt | $ | $ |
2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||||||||||
Maturities of long-term debt | $ | $ | $ | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State | |||||||||||||||||
Foreign | |||||||||||||||||
Current provision | |||||||||||||||||
Deferred: | |||||||||||||||||
Federal | ( | ||||||||||||||||
State | ( | ||||||||||||||||
Foreign | ( | ( | |||||||||||||||
Deferred provision | ( | ||||||||||||||||
Total income tax expense | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Federal statutory tax expense | $ | $ | $ | ||||||||||||||
State taxes, net of federal tax effect | |||||||||||||||||
Credit for increasing research activities | ( | ( | ( | ||||||||||||||
Valuation allowance | ( | ||||||||||||||||
Goodwill impairment | |||||||||||||||||
Equity based compensation | ( | ||||||||||||||||
Change in uncertain tax positions | ( | ( | |||||||||||||||
Foreign income tax rate differential | ( | ||||||||||||||||
Other – net | |||||||||||||||||
Total income tax expense | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Deferred Taxes | |||||||||||
Allowance for doubtful accounts | $ | $ | |||||||||
Compensation | |||||||||||
Inventory differences | |||||||||||
Marketing accrual | |||||||||||
Stock-based compensation | |||||||||||
Accrued post-retirement benefit obligations | |||||||||||
Vacation accrual | |||||||||||
Warranty accrual | |||||||||||
Net operating loss carryforward | |||||||||||
Capital loss carryforward | |||||||||||
Lease liability | |||||||||||
Payroll deferral | |||||||||||
Other – net | |||||||||||
Total deferred tax assets | $ | $ | |||||||||
Deferred income | ( | ( | |||||||||
Goodwill and other intangible assets | ( | ( | |||||||||
Prepaid expenses | ( | ( | |||||||||
Right of use asset | ( | ( | |||||||||
Tax over book depreciation | ( | ( | |||||||||
Total deferred tax liabilities | $ | ( | $ | ( | |||||||
Valuation allowance | ( | ( | |||||||||
Total net deferred tax liabilities | $ | ( | $ | ( | |||||||
Long-term net deferred tax assets | |||||||||||
Long-term net deferred tax liabilities | ( | ( | |||||||||
Total net deferred tax liabilities | $ | ( | $ | ( |
Balance at beginning of period | Charged to expenses | Adjustments to balance sheet | Balance at end of period | |||||||||||||||||||||||
Year ended January 2, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||
Year ended December 28, 2019 | $ | $ | $ | $ | ||||||||||||||||||||||
Year ended December 29, 2018 | $ | $ | ( | $ | ( | $ |
2020 | 2019 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Increases in positions taken in a prior period | |||||||||||
Decreases in positions taken in a prior period | ( | ||||||||||
New positions taken in a current period | |||||||||||
Decrease due to lapse of statute of limitations | ( | ( | |||||||||
Balance at end of period | $ | $ |
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) | ||||||||||||||||||||
Balance as of January 2, 2021 | |||||||||||||||||||||||
Cash and cash equivalents (including money market funds) (1) | $ | $ | $ | $ | |||||||||||||||||||
Government securities (2) | $ | $ | $ | $ | |||||||||||||||||||
Corporate bonds (2) | $ | $ | $ | $ | |||||||||||||||||||
Derivative financial instruments - liability (4) | $ | $ | $ | $ | |||||||||||||||||||
Deferred stock-based compensation (5) | $ | $ | $ | $ | |||||||||||||||||||
Balance as of December 28, 2019 | |||||||||||||||||||||||
Cash and cash equivalents (including money market funds) (1) | $ | $ | $ | $ | |||||||||||||||||||
Government securities (2) | $ | $ | $ | $ | |||||||||||||||||||
Corporate bonds (2) | $ | $ | $ | $ | |||||||||||||||||||
Derivative financial instruments - asset (3) | $ | $ | $ | $ | |||||||||||||||||||
Deferred stock-based compensation (5) | $ | $ | $ | $ |
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Debt Securities | Pension and Post-retirement Liabilities | Derivative Financial Instruments | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Balance as of December 30, 2017 | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Tax (expense) or benefit | ( | ( | ( | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||||||||
Balance as of December 29, 2018 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Tax (expense) or benefit | ( | ||||||||||||||||||||||||||||
Reclassification of stranded tax impact | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||||||||
Balance as of December 28, 2019 | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ||||||||||||||||||||||||||
Tax (expense) or benefit | ( | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | |||||||||||||||||||||||||||||
Balance as of January 2, 2021 | $ | ( | $ | $ | ( | $ | ( | $ | ( |
Details about Accumulated Other Comprehensive Income (Loss) Components | Affected Line Item in the Statement Where Net Income is Presented | 2020 | 2019 | 2018 | ||||||||||||||||||||||
Derivative financial instruments | ||||||||||||||||||||||||||
Interest rate swap | Interest expense, net | $ | ( | $ | $ | |||||||||||||||||||||
Income tax expense | ( | ( | ||||||||||||||||||||||||
Foreign currency translation | ||||||||||||||||||||||||||
Foreign entity reorganization | Selling and administrative expenses | $ | ( | $ | $ | |||||||||||||||||||||
Net of tax | $ | ( | $ | $ | ||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Director Plan issued shares of common stock |
2020 | 2019 | 2018 | |||||||||||||||
Dividends per common shares | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Shares of common stock issued | |||||||||||||||||
Average price per share | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Shares repurchased | |||||||||||||||||
Average price per share | $ | $ | $ | ||||||||||||||
Cash purchase price | $ | ( | $ | ( | $ | ( | |||||||||||
Purchases unsettled as of quarter end | |||||||||||||||||
Prior year purchases settled in current year | ( | ( | ( | ||||||||||||||
Shares repurchased per cash flow | $ | ( | $ | ( | $ | ( |
2020 | 2019 | 2018 | |||||||||||||||
Compensation cost | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Income tax benefit | $ | $ | $ |
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Nonvested as of December 30, 2017 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested as of December 29, 2018 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested as of December 28, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Nonvested as of January 2, 2021 | $ |
2020 | 2019 | 2018 | |||||||||||||||
Value of shares vested | $ | $ | $ |
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Nonvested as of December 28, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | |||||||||||
Forfeited | ( | ||||||||||
Nonvested as of January 2, 2021 | $ |
2019 | 2018 | |||||||||||||
Expected term | ||||||||||||||
Expected volatility (weighted-average) | % | % | ||||||||||||
Expected dividend yield (weighted-average) | % | % | ||||||||||||
Risk-free interest rate (weighted-average) | % | % |
Number of Shares | Weighted Average Exercise Price | ||||||||||
Outstanding as of December 30, 2017 | $ | ||||||||||
Granted | |||||||||||
Exercised | ( | ||||||||||
Forfeited or Expired | ( | ||||||||||
Outstanding as of December 29, 2018 | $ | ||||||||||
Granted | |||||||||||
Exercised | ( | ||||||||||
Forfeited or Expired | ( | ||||||||||
Outstanding as of December 28, 2019 | $ | ||||||||||
Exercised | ( | ||||||||||
Forfeited or Expired | ( | ||||||||||
Outstanding as of January 2, 2021 | $ |
Number of Shares | Weighted Average Grant-Date Fair Value | ||||||||||
Non-vested as of December 28, 2019 | $ | ||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Non-vested as of January 2, 2021 | $ |
January 2, 2021 | |||||||||||||||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Exercisable Period (years) | Aggregate Intrinsic Value ($000s) | ||||||||||||||||||||
Expected to vest | $ | $ | |||||||||||||||||||||
Exercisable | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Total fair value of options vested | $ | $ | $ | ||||||||||||||
Total intrinsic value of options exercised | $ | $ | $ | ||||||||||||||
Cash received from exercise of stock options | $ | $ | $ | ||||||||||||||
Tax benefit realized from exercise of stock options | $ | $ | $ | ||||||||||||||
Weighted-average grant-date fair value of options granted | $ | $ | $ |
January 2, 2021 | December 28, 2019 | ||||||||||
Current maturities of other long-term obligations | $ | $ | |||||||||
Other long-term liabilities | |||||||||||
Total deferred compensation | $ | $ | |||||||||
Total fair-market value of deferred compensation | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Stock contribution | $ | $ | $ | ||||||||||||||
Cash contribution | |||||||||||||||||
Total annual contribution | $ | $ | $ |
2020 | 2019 | ||||||||||
Change in benefit obligation | |||||||||||
Benefit obligation at beginning of year | $ | $ | |||||||||
Service cost | |||||||||||
Interest cost | |||||||||||
Benefits paid | ( | ( | |||||||||
Actuarial loss | |||||||||||
Benefit obligation at end of year | $ | $ | |||||||||
Change in plan assets | |||||||||||
Fair value at beginning of year | $ | $ | |||||||||
Actual return on assets | |||||||||||
Employer contribution | |||||||||||
Transferred out | |||||||||||
Benefits paid | ( | ( | |||||||||
Fair value at end of year | $ | $ | |||||||||
Funded Status of Plan | $ | ( | $ | ( | |||||||
Amounts recognized in the Statement of Financial Position consist of: | |||||||||||
Current liabilities | $ | $ | |||||||||
Non-current liabilities | $ | $ | |||||||||
Amounts recognized in Accumulated Other Comprehensive Income (Loss) (before tax) consist of: | |||||||||||
Actuarial loss | $ | $ | |||||||||
Change in Accumulated Other Comprehensive Income (before tax): | |||||||||||
Amount disclosed at beginning of year | $ | $ | ( | ||||||||
Actuarial loss | |||||||||||
Amortization of transition amount | ( | ||||||||||
Amount disclosed at end of year | $ | $ |
Fiscal 2021 | $ | ||||
Fiscal 2022 | $ | ||||
Fiscal 2023 | $ | ||||
Fiscal 2024 | $ | ||||
Fiscal 2025 | $ | ||||
Fiscal 2026 – 2030 | $ |
Fiscal 2021 | $ |
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | % | % | % |
Classification | January 2, 2021 | December 28, 2019 | ||||||
Assets | ||||||||
Right-of-use operating leases | $ | $ | ||||||
Right-of-use finance leases | ||||||||
Total Right-of-use operating / finance leases | $ | $ | ||||||
Liabilities | ||||||||
Current lease obligations - operating | $ | $ | ||||||
Current lease obligations - finance | ||||||||
Total Current lease obligations - operating / finance | ||||||||
Long-term lease obligations - operating | ||||||||
Long-term lease obligations - finance | ||||||||
Total Long-term lease obligations - operating / finance | ||||||||
Total lease obligations - operating / finance | $ | $ |
Classification | 2020 | 2019 | |||||||||
Operating lease costs | |||||||||||
Fixed | Cost of sales | $ | $ | ||||||||
Selling and administrative expenses | |||||||||||
Short-term / variable | Cost of sales | ||||||||||
Selling and administrative expenses | |||||||||||
Finance lease costs | |||||||||||
Amortization | Cost of sales, selling and administrative, and interest expense | ||||||||||
Less: Sublease income | |||||||||||
Total lease costs | $ | $ |
Operating Leases (a) | Finance Leases (b) | Total | |||||||||||||||
2021 | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total lease payments | |||||||||||||||||
Less: Interest | |||||||||||||||||
Present value of lease liabilities | $ | $ | $ |
Weighted-Average Discount Rate (percent) | Weighted-Average Remaining Lease Term (years) | ||||||||||
Operating leases | % | ||||||||||
Finance leases | % |
2020 | 2019 | |||||||
Cash paid for amounts included in the measurements of lease liabilities | ||||||||
Operating cash flows from operating / finance leases | $ | $ | ||||||
Financing cash flows from finance leases | $ | $ | ||||||
Leased assets obtained in exchange for new operating / finance lease liabilities | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Net Sales: | |||||||||||||||||
Workplace furnishings | $ | $ | $ | ||||||||||||||
Residential building products | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Income (Loss) Before Income Taxes: | |||||||||||||||||
Workplace furnishings | $ | ( | $ | $ | |||||||||||||
Residential building products | |||||||||||||||||
General corporate | ( | ( | ( | ||||||||||||||
Operating income | |||||||||||||||||
Interest expense, net | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Depreciation and Amortization Expense: | |||||||||||||||||
Workplace furnishings | $ | $ | $ | ||||||||||||||
Residential building products | |||||||||||||||||
General corporate | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Capital Expenditures (including capitalized software): | |||||||||||||||||
Workplace furnishings | $ | $ | $ | ||||||||||||||
Residential building products | |||||||||||||||||
General corporate | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Identifiable Assets: | |||||||||||||||||
Workplace furnishings | $ | $ | $ | ||||||||||||||
Residential building products | |||||||||||||||||
General corporate | |||||||||||||||||
Total | $ | $ | $ |
Subsidiary | Country/State of Incorporation | Doing Business As | ||||||
Allsteel Inc. | Illinois | Allsteel Inc.; HNI Global; HNI One; HNI One - Global Accounts; One from HNI; HNI Canada | ||||||
Design Holdings Inc. | Iowa | Design Holdings Inc. | ||||||
Dongguan Lamex Furniture Co. Ltd. | PRC | Dongguan Lamex Furniture Co. Ltd. | ||||||
Global Known Ltd. | Hong Kong | Global Known Ltd. | ||||||
The Gunlocke Company L.L.C. | Iowa | The Gunlocke Company L.L.C. | ||||||
Hearth & Home Technologies LLC | Iowa | Hearth & Home Technologies; Stellar Hearth; Fireside Hearth & Home | ||||||
HFM Partners | Iowa | HFM Partners | ||||||
Hickory Business Furniture, LLC | North Carolina | Hickory Business Furniture, LLC; HBF Furniture LLC | ||||||
HNI Asia L.L.C. | Iowa | HNI Asia L.L.C. | ||||||
HNI Asia Technology Services (Shenzhen) Limited | PRC | HNI Asia Technology Services (Shenzhen) Limited | ||||||
HNI Holdings Inc. | Iowa | HNI Holdings Inc. | ||||||
HNI Hong Kong Limited | Hong Kong | HNI Hong Kong Limited | ||||||
HNI International Inc. | Iowa | HNI International Inc. | ||||||
HNI International (Mexico) L.L.C. | Iowa | HNI International (Mexico) L.L.C. | ||||||
HNI International (Puerto Rico) L.L.C. | Iowa | HNI International (Puerto Rico) L.L.C. | ||||||
HNI Middle East DMCC | Dubai | HNI Middle East DMCC | ||||||
HNI Office India Ltd. | India | HNI India | ||||||
HNI Services LLC | Iowa | HNI Services LLC | ||||||
HNI Singapore Private Limited | Singapore | HNI Singapore Private Limited | ||||||
HNI Technologies Inc. | Iowa | HNI Technologies Inc. | ||||||
The HON Company LLC | Iowa | The HON Company LLC; Lewis Office LLC; Lewis Office; The HON Company LLC - ATHC | ||||||
HON INDUSTRIES (Canada) Inc. | Canada | HON INDUSTRIES (Canada) Inc. | ||||||
HON Internacional de Mexico S.de R.L.de C.V. | Mexico | HON Internacional de Mexico S.de R.L.de C.V. | ||||||
HON Internacional Servicios de Mexico, S.de R.L. de C.V. | Mexico | HON Internacional Servicios de Mexico, S.de R.L. de C.V. | ||||||
Lamex China Investment Ltd. | Hong Kong | Lamex China Investment Ltd. | ||||||
Lamex Trading Co. Ltd. | Hong Kong | Lamex Trading Co. Ltd. | ||||||
Maxon Furniture Inc. | Iowa | Maxon Furniture Inc. | ||||||
Monessen Hearth Canada, Inc. | Canada | Monessen Hearth Canada, Inc. | ||||||
Monessen Hearth Systems Company, LLC | Kentucky | Monessen Hearth Systems Company, LLC; Vermont Castings Group | ||||||
OFM, LLC | Delaware | OFM, LLC; Essentials by OFM | ||||||
Paoli LLC | Iowa | Paoli LLC; Paoli Furniture LLC; Paoli LLC of Iowa | ||||||
Pearl City Insurance Company | Arizona | Pearl City Insurance Company |
Date: March 2, 2021 | By: | /s/ Jeffrey D. Lorenger | ||||||
Name: Jeffrey D. Lorenger | ||||||||
Title: Chairman, President, and Chief Executive Officer |
Date: March 2, 2021 | By: | /s/ Marshall H. Bridges | ||||||
Name: Marshall H. Bridges | ||||||||
Title: Senior Vice President and Chief Financial Officer |
Date: March 2, 2021 | By: | /s/ Jeffrey D. Lorenger | ||||||
Name: Jeffrey D. Lorenger | ||||||||
Title: Chairman, President, and Chief Executive Officer |
Date: March 2, 2021 | By: | /s/ Marshall H. Bridges | ||||||
Name: Marshall H. Bridges | ||||||||
Title: Senior Vice President and Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares outstanding (in shares) | 42,919,000 | 42,595,000 |
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands |
Total |
Dividend Declared |
Dividend Paid |
Cumulative Effect, Period of Adoption, Adjustment |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Retained Earnings
Dividend Declared
|
Retained Earnings
Dividend Paid
|
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
Accumulated Other Comprehensive Income (Loss) |
Non-controlling Interest |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 30, 2017 | $ 514,577 | $ 43,354 | $ 7,029 | $ 467,296 | $ (3,611) | $ 509 | ||||||
Comprehensive income: | ||||||||||||
Net income (loss) | 93,326 | 93,377 | (51) | |||||||||
Other comprehensive income (loss), net of tax | 12 | 12 | ||||||||||
Change in ownership of non-controlling interest | (175) | (43) | (132) | |||||||||
Cash dividends | (51,085) | (51,085) | ||||||||||
Common shares – treasury: | ||||||||||||
Shares purchased | (29,424) | (755) | (24,033) | (4,636) | ||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | 36,028 | 983 | 35,045 | |||||||||
Ending Balance at Dec. 29, 2018 | 563,259 | 43,582 | 18,041 | 504,909 | (3,599) | 326 | ||||||
Ending Balance (Impact of Implementation of Lease Guidance) at Dec. 29, 2018 | $ 2,999 | $ 2,999 | ||||||||||
Comprehensive income: | ||||||||||||
Net income (loss) | 110,503 | 110,505 | (2) | |||||||||
Other comprehensive income (loss), net of tax | (3,735) | (3,735) | ||||||||||
Reclassification of Stranded Tax Effects (ASU 2018-02) | 0 | 739 | (739) | |||||||||
Cash dividends | (52,232) | (52,232) | ||||||||||
Common shares – treasury: | ||||||||||||
Shares purchased | (83,907) | (2,286) | (44,424) | (37,197) | ||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | 47,481 | 1,299 | 46,182 | |||||||||
Ending Balance at Dec. 28, 2019 | 584,368 | $ (131) | 42,595 | 19,799 | 529,723 | $ (131) | (8,073) | 324 | ||||
Comprehensive income: | ||||||||||||
Net income (loss) | 41,919 | 41,917 | 2 | |||||||||
Other comprehensive income (loss), net of tax | $ (1,080) | (1,080) | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||||||
Cash dividends | $ (231) | $ (52,096) | $ (231) | $ (52,096) | ||||||||
Common shares – treasury: | ||||||||||||
Shares purchased | $ (6,390) | (214) | (4,988) | (1,188) | ||||||||
Shares issued under Members' Stock Purchase Plan and stock awards, net of tax | 24,386 | 538 | 23,848 | |||||||||
Ending Balance at Jan. 02, 2021 | $ 590,745 | $ 42,919 | $ 38,659 | $ 517,994 | $ (9,153) | $ 326 |
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.220 | $ 1.210 | $ 1.170 |
Nature of Operations |
12 Months Ended |
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Jan. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations HNI Corporation with its subsidiaries (the "Corporation") is a provider of office furniture and hearth products. Refer to "Note 16. Reportable Segment Information" in the Notes to Consolidated Financial Statements for further information. In the second quarter of 2020, the Corporation rebranded its segments to workplace furnishings (formerly office furniture) and residential building products (formerly hearth products). These changes clarify how and where the Corporation's products are used, and are intended to reduce confusion. These changes did not impact the Corporation's consolidated financial statements or disclosures. Workplace furnishings products include panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. These products are sold primarily through a national system of independent dealers, wholesalers, and office product distributors but also directly to end-user customers and federal, state, and local governments. Residential building products include a full array of gas, wood, electric, and pellet fueled fireplaces, inserts, stoves, facings, and accessories. These products are sold through a national system of independent dealers and distributors, as well as Corporation-owned distribution and retail outlets. The Corporation’s products are marketed predominantly in the United States and Canada. The Corporation exports select products through its export subsidiary to a limited number of markets outside North America, principally the Middle East, Mexico, Latin America, and the Caribbean. The Corporation also manufactures and markets office furniture in Asia, primarily China and India. Fiscal year-end – The Corporation follows a 52/53-week fiscal year, which ends on the Saturday nearest December 31. Fiscal year 2020 ended on January 2, 2021, fiscal year 2019 ended on December 28, 2019, and fiscal year 2018 ended on December 29, 2018. The financial statements for fiscal year 2020 are on a 53-week basis, while 2019 and 2018 are on a 52-week basis. A 53-week year occurs approximately every sixth year.
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Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Cash, Cash Equivalents, and Investments Cash and cash equivalents generally consist of cash and money market accounts. The fair value approximates the carrying value due to the short duration of the securities. These securities have original maturity dates not exceeding three months. The Corporation has short-term investments with maturities of less than one year, as well as investments with maturities between one and five years. Management classifies investments in marketable securities at the time of purchase and reevaluates such classification at each balance sheet date. Debt securities, including government and corporate bonds, are classified as available-for-sale and stated at current market value with unrealized gains and losses included as a separate component of equity, net of any related tax effect. The specific identification method is used to determine realized gains and losses on the trade date. The Corporation's equity investment consists of an investment in a private entity and is carried at cost, as it does not have a readily determinable fair value. Cash, cash equivalents, and investments are reflected in the Consolidated Balance Sheets and were as follows (in thousands):
The following table summarizes the amortized cost basis of the debt securities (in thousands):
Immaterial unrealized gains and losses are recorded in "Accumulated other comprehensive income (loss)" in the Consolidated Balance Sheets for these debt securities. Receivables The allowance for doubtful accounts is developed based on several factors including overall customer credit quality, historical write-off experience, and specific account analyses projecting the ultimate collectability of the account. In the second quarter of 2020 the Corporation adjusted its method for determining the allowance for doubtful accounts in response to the COVID-19 pandemic. The impact of this adjustment was not material to the financial statements. The adoption of ASU No. 2016-13 did not significantly impact the Corporation's accounting policies or estimation methods related to the allowance for doubtful accounts. The following table summarizes the change in the allowance for doubtful accounts (in thousands):
Inventories The Corporation values its inventory at the lower of cost or net realizable value. Inventories included in the Consolidated Balance Sheets consisted of the following (in thousands):
During 2020 and 2019, inventory quantities were reduced at certain reporting units. This reduction resulted in a liquidation of LIFO inventory quantities carried at higher or lower costs prevailing in prior years as compared with the cost of current year purchases, the effect of which decreased cost of goods sold by approximately $0.6 million in 2020 and $2.2 million in 2019. If the FIFO method had been in use, inventories would have been $31.0 million and $30.7 million higher than reported as of January 2, 2021 and December 28, 2019, respectively. Property, Plant, and Equipment Property, plant, and equipment are carried at cost. Expenditures for repairs and maintenance are expensed as incurred. Major improvements that materially extend the useful lives of the assets are capitalized. Depreciation has been computed using the straight-line method over estimated useful lives: land improvements, 10 – 20 years; buildings, 10 – 40 years; and machinery and equipment, 3 – 12 years. Total depreciation expense was as follows (in thousands):
Long-Lived Assets The Corporation evaluates long-lived assets for indicators of impairment as events or changes in circumstances occur indicating that an impairment risk may be present. The judgments regarding the existence of impairment are based on business and market conditions, operational performance, and estimated future cash flows. If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded to adjust the asset to its estimated fair value. Goodwill and Other Intangible Assets The Corporation evaluates its goodwill for impairment on an annual basis during the fourth quarter or whenever indicators of impairment exist. Asset impairment charges associated with the Corporation’s goodwill impairment testing are discussed in "Note 6. Goodwill and Other Intangible Assets" in the Notes to Consolidated Financial Statements. The Corporation reviews goodwill at the reporting unit level within its workplace furnishings and residential building products operating segments. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. The accounting standards for goodwill permit entities to first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the quantitative test is required, the Corporation estimates the fair value of its reporting units. In estimating the fair value, the Corporation relies on an average of the income approach and the market approach. This estimated fair value is compared to the carrying value of the reporting unit and an impairment is recorded if the estimate is less than the carrying value. In the income approach, the estimate of fair value of each reporting unit is based on management’s projection of revenues, gross margin, operating costs, and cash flows considering historical and estimated future results, general economic and market conditions, as well as the impact of planned business and operational strategies. The valuations employ present value techniques to measure fair value and consider market factors. In the market approach, the Corporation utilizes the guideline company method, which involves calculating valuation multiples based on operating data from guideline publicly-traded companies. These multiples are then applied to the operating data for the reporting units and adjusted for factors similar to those used in the discounted cash flow analysis. Management believes the assumptions used for the impairment test are consistent with those utilized by a market participant in performing similar valuations of its reporting units. Management bases its fair value estimates on assumptions they believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Actual results may differ from those estimates. The Corporation also evaluates the fair value of indefinite-lived trade names on an annual basis during the fourth quarter or whenever an indication of impairment exists. The estimate of the fair value of the trade names is based on a discounted cash flows model using inputs which include: projected revenues, assumed royalty rates that would be payable if the trade names were not owned, and discount rates. The Corporation has definite-lived intangible assets that are amortized over their estimated useful lives. Impairment losses are recognized if the carrying amount of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its fair value. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are reflected in the Consolidated Balance Sheets and were as follows (in thousands):
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. 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 claims incurred could differ from the original estimates, requiring adjustments to the allowance. Activity associated with warranty obligations was as follows (in thousands):
The current and long-term portions of the allowance for the estimated settlements are included within "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid (in thousands):
Revenue Recognition The Corporation implemented ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), at the beginning of fiscal 2018 using the modified-retrospective method, which required this guidance to be applied prospectively to revenue transactions completed on or after the effective date. Given the nature of the Corporation's revenue transactions, this guidance did not have a material impact on the Corporation's results of operations or financial position. 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. 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. Accounting Policies and Practical Expedients: Shipping and Handling Activities - The Corporation elected to apply the accounting policy election permitted in the revenue accounting standard, which allows an entity to account for shipping and handling activities that occur after control is transferred as fulfillment activities. The Corporation accrues for shipping and handling costs at the same time revenue is recognized, which is in accordance with the policy election. When shipping and handling activities occur prior to the customer obtaining control of the good(s), they are considered fulfillment activities rather than a performance obligation and the costs are accrued for as incurred. Sales Taxes - The Corporation elected to apply the accounting policy election permitted in the revenue accounting standard, which allows an entity to exclude from the measurement of the transaction price all taxes assessed by a governmental authority associated with the transaction, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows the Corporation to present revenue net of these certain types of taxes. Incremental Costs of Obtaining a Contract - The Corporation elected the practical expedient permitted in the revenue accounting standard, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year. Significant Financing Component - The Corporation elected the practical expedient permitted in the revenue accounting standard, which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Corporation's contracts are typically less than one year in length, consideration will not be adjusted. Remaining Performance Obligation - The Corporation's backlog orders are typically cancelable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation 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. These accounting policies and practical expedients have been applied consistently to all revenue transactions. See "Note 3. Revenue from Contracts with Customers" in the Notes to Consolidated Financial Statements for further information. Leases The Corporation implemented ASU No. 2016-02, Leases (Topic 842), at the beginning of fiscal 2019 using the modified-retrospective transition approach. The new standard requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use ("ROU") asset and lease liability. Implementation of ASU No. 2016-02 increased retained earnings by $3.0 million, primarily resulting from the recognition of the remaining deferred gain on a 2018 sale-leaseback transaction directly into retained earnings as a transitional adjustment. The Corporation recognized $73.8 million in ROU assets and $82.0 million in lease liabilities as a result of the implementation of this standard. Accounting Policies and Practical Expedients: •The Corporation has made an accounting election by class of underlying assets to not separate non-lease components of a contract from the lease components to which they relate for all classes of assets except for embedded leases. •The Corporation has elected not to restate prior period financial statements for the effects of the new standard. Required ASC 840 disclosures for periods prior to 2019 have been provided. •The Corporation has elected not to use hindsight in determining the lease term and in assessing the likelihood that a lessee purchase option will be exercised. •The Corporation has elected for all asset classes to not recognize ROU assets and lease liabilities for leases that at the acquisition date or business combination date have a remaining lease term of twelve months or less. Research and Development Costs Research and development costs relating to development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. These costs include salaries, contractor fees, prototype costs, and administrative fees. The amounts charged against income and recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income were as follows (in thousands):
Freight Expense Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows (in thousands):
Stock-Based Compensation The Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and generally recognizes cost over the requisite service period. See "Note 11. Stock-Based Compensation" in the Notes to Consolidated Financial Statements for further information. Income Taxes The Corporation uses an asset and liability approach that takes into account guidance related to uncertain tax positions and requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred income taxes are provided to reflect differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Earnings Per Share Basic earnings per share are based on the weighted-average number of common shares outstanding during the year. Shares potentially issuable under stock options, restricted stock units, and common stock equivalents under the Corporation's deferred compensation plans have been considered outstanding for purposes of the diluted earnings per share calculation. The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS") (in thousands, except per share data):
The weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive (in thousands):
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Areas requiring significant use of management estimates relate to goodwill and intangibles, accruals for self-insured medical claims, workers’ compensation, legal contingencies, general liability and auto insurance claims, valuation of long-lived assets, and estimates of income taxes. Other areas requiring use of management estimates relate to allowance for doubtful accounts, inventory allowances, marketing program accruals, warranty accruals, and useful lives for depreciation and amortization. Actual results could differ from those estimates. Self-Insurance The Corporation is primarily self-insured for general, auto, and product liability, workers’ compensation, and certain employee health benefits. Certain risk exposures are mitigated through the use of independent third party stop loss insurance coverages. The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows (in thousands):
The preceding table excludes self-insured member health benefits liabilities of $6.0 million and $5.6 million as of January 2, 2021 and December 28, 2019, respectively. The Corporation’s policy is to accrue amounts in accordance with the actuarially determined liabilities. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost inflation, and magnitude of change in actual experience development could cause these estimates to change in the future. Foreign Currency Translations Foreign currency financial statements of foreign operations, where the local currency is the functional currency, are translated using exchange rates in effect at period end for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component of Shareholders' Equity. Immaterial gains and losses on foreign currency transactions are included in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments and also issued subsequent amendments to the initial guidance: ASU 2018-09, ASU 2019-04, ASU 2019-05, and ASU 2019-11 (collectively, Topic 326). Topic 326 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses by requiring consideration of a broader range of reasonable and supportable information and is intended to provide financial statement users with more useful information about expected credit losses on financial instruments. The Corporation adopted Topic 326 in the first quarter of fiscal 2020 using a modified retrospective transition approach. The adoption resulted in a cumulative effect decrease to retained earnings of $0.1 million to reflect a change in the allowance for doubtful accounts. Additionally, Topic 326 requires the allowance for doubtful accounts (contra-asset) to be presented separately in the Consolidated Balance Sheets. No other financial line items were materially impacted by the adoption. See Receivables section of "Note 2. Summary of Significant Accounting Policies" for additional information regarding the Corporation's methodology for determining the allowance for doubtful accounts. Topic 326 also introduced new accounting and reporting requirements related to available-for-sale debt securities, including consideration of whether an allowance for credit losses should be established. The Corporation has determined that such an allowance is not required with respect to its available-for-sale debt security portfolio. See "Note 9. Fair Value Measurements" for fair value information of the Corporation's available-for sale debt securities and where such are recorded in the Consolidated Balance Sheets. Immaterial amounts of accrued interest receivable related to the Corporation's portfolio are recorded in "Prepaid expenses and other current assets" and "Other assets". Reclassifications Certain reclassifications have been made within the financial statements to conform to the current year presentation.
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Revenue from Contracts with Customers |
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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 (in thousands):
Sales by product category are subject to similar economic factors and market conditions. See “Note 16. Reportable Segment Information” in the Notes to Consolidated Financial Statements for further information about operating segments. Contract Assets and Contract Liabilities In addition to trade receivables, the Corporation has contract assets consisting of funds paid to certain workplace furnishings dealers in exchange for their multi-year commitment to market and sell the Corporation's products. These contract assets are amortized over the term of the contracts and recognized as a reduction of revenue. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities. Contract assets and contract liabilities were as follows (in thousands):
The index below indicates the line item in the Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the year ended January 2, 2021 were as follows (in thousands):
Changes in contract asset and contract liability balances during the year ended December 28, 2019 were as follows (in thousands):
Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon completion of the performance obligations. The amount of revenue recognized during the year ended January 2, 2021 that was included in the December 28, 2019 contract liabilities balance was $8.6 million. The amount of revenue recognized during the year ended December 28, 2019 that was included in the December 29, 2018 contract liabilities balance was $8.3 million.
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Acquisitions |
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Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions During the year ended January 2, 2021, the Corporation acquired three residential building products distribution businesses, in January 2020, March 2020 and June 2020. All transactions were structured as asset acquisitions and were consummated entirely in cash. The aggregate purchase price was approximately $11 million, and includes $10.3 million of goodwill, which is tax deductible. The purchase accounting is complete, and the remaining assets and liabilities acquired were not material. On December 31, 2020, the Corporation acquired Design Public Group ("DPG"), a leading e-Commerce distributor of high-design furniture and accessories for the office and home. This transaction, which was structured as an asset acquisition and consummated entirely in cash of approximately $50 million, aligns with the Corporation's long-term strategies related to digital and e-Commerce initiatives. Due to the timing of the transaction, DPG had no net sales or expenses included in the Corporation's Consolidated Statement of Comprehensive Income for fiscal 2020. DPG's preliminary assets and liabilities are included in the Corporation's workplace furnishings segment, and preliminary goodwill, which is expected to be tax-deductible, is assigned to its own reporting unit. The provisional DPG purchase price allocation and estimated amortization periods of identified intangible assets as of the date of acquisition is as follows (dollars in thousands):
The provisional purchase accounting remains open with respect to the valuation of intangible assets, goodwill, and working capital. The valuation analysis requires the use of complex management estimates and assumptions such as future cash flows, discount rates, royalty rates, long-term growth rates, and technology build costs. At this time, intangible assets and goodwill are recorded based on preliminary assumptions, and the Corporation has not obtained all of the information necessary to finalize the determination of fair values of intangible assets. The portions of the allocation that are provisional may be adjusted to reflect the finally determined amounts, and those adjustments may be material. The Corporation expects to finalize the purchase price allocation in the first half of 2021. All acquisitions in the current year were accounted for using the acquisition method pursuant to ASC 805, with goodwill being recorded as a result of future cash flows and related fair value exceeding the fair value of the identified assets and liabilities.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The Corporation's cash payments for interest, income taxes, and non-cash investing and financing activities are as follows (in thousands):
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following (in thousands):
Goodwill The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):
Goodwill acquired in 2020 was the result of the Corporation's acquisition of DPG and three residential building products distributors. See "Note 4. Acquisitions" for additional information. See Impairment Analysis section below for additional information regarding goodwill impairment recorded in 2020. Definite-lived intangible assets The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Corporation’s Consolidated Balance Sheets (in thousands):
In the first quarter of 2020, the Corporation recorded impairment charges of $0.6 million and $8.2 million, related to definite-lived trade names and customer lists, respectively, in the workplace furnishings segment. The table above includes the estimated fair values of software, trademarks and trade names, and customer lists and other identified intangible assets acquired through business combinations in 2020. See "Note 4. Acquisitions" for additional information. Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows (in thousands):
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 fiscal years is as follows (in millions):
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 Consolidated Balance Sheets (in thousands):
In the first quarter of 2020, the Corporation recorded an impairment charge of $2.3 million, related to an indefinite-lived trade name in the workplace furnishings segment. The remaining immaterial change in the indefinite-lived intangible assets balances shown above is related to foreign currency translation impacts. Impairment Analysis The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist. First Quarter 2020 At the end of the first quarter of 2020, the Corporation determined that a triggering event occurred, resulting in quantitative impairment tests performed over the goodwill, indefinite-lived intangible assets, and long-lived asset groups related to three smaller reporting units in the workplace furnishings segment. This determination was made considering the reduced sales and profitability projections for these reporting units, driven by the advent of the COVID-19 pandemic and related economic disruption. Management also considered the relative difference between the fair values and carrying values of the respective reporting units and indefinite-lived intangible assets in the most recent prior annual test performed during the fourth quarter of 2019. For the Corporation's remaining reporting units, management determined that the likelihood of the current fair value being less than the current carrying value was remote, and thus no quantitative impairment testing was performed. As a result of the long-lived asset impairment testing, it was determined the carrying value of one long-lived asset group was not recoverable based on an analysis of the undiscounted estimated future cash flows of the group. Consequently, the Corporation recorded charges of $0.6 million and $8.2 million to fully impair the carrying values of a definite-lived trade name and customer list, respectively, within this asset group. As a result of the indefinite-lived intangible asset impairment testing, it was determined the carrying value of one of the Corporation's indefinite-lived trade names exceeded the estimated fair value. Therefore, a $2.3 million impairment charge was recorded to reduce the carrying value to estimated fair value of $5.3 million. The fair value of this trade name is considered a Level 3 measurement which utilizes a relief-from-royalty discounted cash flows approach. Key inputs and assumptions involved include the estimated near-term revenue growth (ranging from -28 percent to +12 percent), long-term growth rate (3 percent), royalty rate (2 percent), and discount rate (16 percent). For the goodwill impairment testing, management utilized a combination of both a discounted cash flows approach and market approach. Projections used in the impairment models reflected management's assumptions regarding revenue growth rates, economic and market trends including deterioration from the COVID-19 pandemic, cost structure, investments required for product enhancements, and other expectations about the anticipated short-term and long-term operating results of the reporting units. As a result of the impairment testing, two reporting units were determined to have carrying values in excess of their fair values, resulting in goodwill impairment charges of $14.1 million and $7.5 million, respectively. These two reporting units have no remaining goodwill. The third reporting unit, which has goodwill of $6.9 million, was determined to have a fair value that exceeded carrying value by approximately 21 percent. Fourth Quarter 2020 In the fourth quarter of 2020, the Corporation performed the required annual goodwill impairment assessment, and determined the carrying value of a smaller reporting unit in the workplace furnishings segment was in excess of its estimated fair value, resulting in a $6.9 million goodwill impairment charge. Following the impairment charge, this reporting unit has no remaining goodwill. The impairment testing utilized a combination of both a discounted cash flows approach and market approach. Projections used in the impairment model reflected management's assumptions regarding revenue growth rates, economic and market trends including continued demand softness from the current COVID-19 pandemic, cost structure, investments required for product enhancements, and other expectations about the anticipated short-term and long-term operating results of the reporting unit (Level 3 measurements). Key inputs and assumptions involved include the estimated near-term revenue growth (ranging from 12 to 18 percent), long-term growth rate (4 percent), and discount rate (16 percent). The impairment charge was driven by the continuing impact of the COVID-19 pandemic and a slower and more inconsistent recovery of customer demand for office furniture and related products in the markets served by this reporting unit, relative to management's previous projections. Management also performed impairment testing in the fourth quarter of 2020 with respect to the indefinite-lived intangible asset and long-lived assets held at this unit. No impairment was identified related to these assets. The estimated fair values of each of the Corporation's other reporting units subjected to the goodwill impairment test in the fourth quarter of 2020 were concluded to be significantly in excess of their carrying values.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt is as follows (in thousands):
Aggregate maturities of long-term debt are as follows (in thousands):
The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at January 2, 2021 was $75 million, which approximated fair value. The fair value of the fixed rate notes was estimated based on a discounted cash flow method (Level 2) to be $122 million at January 2, 2021. As of January 2, 2021, the Corporation’s revolving credit facility borrowings were under the credit agreement entered into on April 20, 2018 with a scheduled maturity of April 20, 2023. The Corporation deferred the debt issuance costs related to the credit agreement, which are classified as assets, and is amortizing them over the term of the credit agreement. The current portion of debt issuance costs of $0.4 million is the amount to be amortized over the next twelve months based on the current credit agreement and is reflected in "Prepaid expenses and other current assets" in the Consolidated Balance Sheets. The long-term portion of debt issuance costs of $0.6 million is reflected in "Other Assets" in the Consolidated Balance Sheets. As of January 2, 2021, there was $75 million outstanding under the $450 million revolving credit facility. The entire amount drawn under the revolving credit facility is considered long-term as the Corporation assumes no obligation to repay any of the amounts borrowed in the next twelve months. Based on current earnings before interest, taxes, depreciation and amortization, the Corporation can access the full remaining $375 million of borrowing capacity available under the revolving credit facility and maintain compliance with applicable covenants. In addition to cash flows from operations, the revolving credit facility under the credit agreement is the primary source of daily operating capital for the Corporation and provides additional financial capacity for capital expenditures, repurchases of common stock, and strategic initiatives, such as acquisitions. In addition to the revolving credit facility, the Corporation also has $100 million of borrowings outstanding under private placement note agreements entered into on May 31, 2018. Under the agreements, the Corporation issued $50 million of seven-year fixed rate notes with an interest rate of 4.22 percent, due May 31, 2025, and $50 million of ten-year fixed rate notes with an interest rate of 4.40 percent, due May 31, 2028. The Corporation deferred the debt issuance costs related to the private placement note agreements, which are classified as a reduction of long-term debt, and is amortizing them over the terms of the private placement note agreements. The deferred debt issuance costs do not reduce the amount owed by the Corporation under the terms of the private placement note agreements. As of January 2, 2021 the debt issuance costs balance of $0.5 million related to the private placement note agreements is reflected in "Long-Term Debt" in the Consolidated Balance Sheets. The credit agreement and private placement notes both contain financial and non-financial covenants. The covenants under both are substantially the same. Non-compliance with covenants under the agreements could prevent the Corporation from being able to access further borrowings, require immediate repayment of all amounts outstanding, and/or increase the cost of borrowing. Covenants require maintenance of financial ratios as of the end of any fiscal quarter, including: •a consolidated interest coverage ratio (as defined in the credit agreement) of not less than 4.0 to 1.0, based upon the ratio of (a) consolidated EBITDA for the last four fiscal quarters to (b) the sum of consolidated interest charges; and •a consolidated leverage ratio (as defined in the credit agreement) of not greater than 3.5 to 1.0, based upon the ratio of (a) the quarter-end consolidated funded indebtedness to (b) consolidated EBITDA for the last four fiscal quarters. The most restrictive of the financial covenants is the consolidated leverage ratio requirement of 3.5 to 1.0. Under the credit agreement, consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, and depreciation and amortization of intangibles, as well as non-cash items that increase or decrease net income. As of January 2, 2021, the Corporation was below the maximum allowable ratio and was in compliance with all of the covenants and other restrictions in the credit agreement. The Corporation expects to remain in compliance with all of the covenants and other restrictions in the credit agreement over the next twelve months.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows (in thousands):
The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows (in thousands):
During the third quarter of 2020, the 2019 federal income tax return was completed resulting in a $0.4 million benefit related to a change in estimate of research and development credits and propane fuel credits, partially offset by changes in executive compensation deductions and other items. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax liabilities and assets are as follows (in thousands):
The valuation allowance for deferred tax assets is as follows (in thousands):
The current year increase in the valuation allowance of $1.3 million primarily relates to an increase of other foreign tax net operating losses, partially offset by a partial release of a valuation allowance related to anticipated foreign net operating loss utilization. As of January 2, 2021, the Corporation had approximately $0.3 million of United States state tax net operating losses and $1.1 million of United States state tax credits, which expire over the next twenty years. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
The amount of unrecognized tax benefits, which would impact the Corporation's effective tax rate, if recognized, was $2.2 million as of January 2, 2021 and $2.6 million as of December 28, 2019. As of January 2, 2021, it is reasonably possible the amount of unrecognized tax benefits may increase or decrease within the twelve months following the reporting date. These increases or decreases in the unrecognized tax benefits would be due to new positions that may be taken on income tax returns, settlement of tax positions, and the closing of statutes of limitation. It is not expected any of the changes will be material individually, or in total, to the results or financial position of the Corporation. The Corporation recognizes interest related to unrecognized tax benefits in interest expense, and penalties in operating expenses, consistent with the recognition of these items in prior reporting periods. The expenses and liabilities recorded for interest and penalties as of and for the years ended January 2, 2021 and December 28, 2019 are immaterial. Tax years 2017 through 2019 remain open for examination by the Internal Revenue Service ("IRS"). Tax years 2015 through 2019, and 2014 through 2019 remain open for examination in various state and foreign jurisdictions, respectively. The Corporation is not currently under examination.
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Fair Value Measurements of Financial Instruments |
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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, and deferred stock-based compensation. The marketable securities are comprised of money market funds, government securities, and corporate bonds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Financial instruments measured at fair value were as follows (in thousands):
The index below indicates the line item in the 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 - "Prepaid expenses and other current assets"; Long-term portion - "Other Assets" (4) Current portion - "Accounts payable and accrued expenses"; Long-term portion - "Other Long-Term Liabilities" (5) Current portion - "Current maturities of other long-term obligations"; Long-term portion - "Other Long-Term Liabilities"
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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable (in thousands):
Amounts in parentheses indicate reductions to equity. Interest Rate Swap In 2019, concurrent with the termination of a previous interest rate swap, the Corporation entered into a new interest rate swap transaction to hedge $75 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of this interest rate swap, the Corporation pays a fixed rate of 1.42 percent and receives one month LIBOR on a $75 million notional value expiring April 2023. As of January 2, 2021, the fair value of the Corporation's interest rate swap liability was $2.3 million. The unrecognized change in value of the interest rate swap, which includes the unamortized gain on the termination of the previous interest rate swap, is reported net of tax as $(1.8) million in "Accumulated other comprehensive income (loss)" in the Consolidated Balance Sheets. The following table details the reclassifications from accumulated other comprehensive income (loss) (in thousands):
Amounts in parentheses indicate reductions to profit. In May 2017, the Corporation registered 300,000 shares of its common stock under its 2017 Equity Plan for Non-Employee Directors of HNI Corporation (the "2017 Director Plan"). The 2017 Director Plan replaced the 2007 Equity Plan for Non-Employee Directors of HNI Corporation (the "2007 Director Plan" and together with the 2017 Director Plan, the "Director Plans"). After approval of the 2017 Director Plan, no awards were granted under the 2007 Director Plan. The 2017 Director Plan permits the Corporation to issue to its non-employee directors options to purchase shares of Corporation common stock, restricted stock or restricted stock units of the Corporation, and awards of Corporation common stock. The 2017 Director Plan also permits non-employee directors to elect to receive all or a portion of their annual retainers and other compensation in the form of shares of Corporation common stock. Common stock was issued under the Director Plans as follows:
Dividend The Corporation declared and paid cash dividends per common share as follows (in dollars):
During 2017, shareholders approved the HNI Corporation Members' Stock Purchase Plan (the "2017 MSPP") to replace the expired 2007 Members' Stock Purchase Plan (the "2007 MSPP" and together with the 2017 MSPP, the "MSPPs"). Under the 2017 MSPP, 800,000 shares of common stock were registered for issuance to participating members. After approval of the 2017 MSPP, no awards were granted under the 2007 MSPP. Under the 2017 MSPP, rights to purchase stock are granted on a quarterly basis to all participating members who customarily work 20 hours or more per week and for five months or more in any calendar year. The price of the stock purchased under the MSPP is 85 percent of the closing price on the exercise date. No member may purchase stock under the MSPP in an amount which exceeds a maximum fair value of $25,000 in any calendar year. The following table provides the details of stock under the MSPPs:
An additional 500,522 shares were available for issuance under the 2017 MSPP as of January 2, 2021. The Corporation has entered into change in control employment agreements with certain officers. According to the agreements, a change in control occurs when a third person or entity becomes the beneficial owner of 20 percent or more of the Corporation’s common stock, when more than one-third of the Board is composed of persons not recommended by at least three-fourths of the incumbent Board, upon certain business combinations involving the Corporation, or upon approval by the Corporation’s shareholders of a complete liquidation or dissolution. Upon a change in control, a key member is deemed to have a two-year employment agreement with the Corporation, and all of his or her benefits vest under the Corporation’s compensation plans. If, at any time within two years of the change in control, his or her employment is terminated by the Corporation for any reason other than cause or disability, or by the key member for good reason, as such terms are defined in the agreement, then the key member is entitled to receive, among other benefits, a severance payment equal to two times (three times for the Corporation’s Chairman, President, and Chief Executive Officer) annual salary and the average of the prior two years' bonuses. Stock Repurchase The par value method of accounting is used for common stock repurchases. The following table summarizes shares repurchased and settled by the Corporation (in thousands, except share and per share data):
As of January 2, 2021, approximately $158.3 million of the Board's current repurchase authorization remained unspent. In 2020, in response to the COVID-19 pandemic, the Corporation temporarily suspended share repurchase activity to support available cash flow.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Under the Corporation’s 2017 Stock-Based Compensation Plan (the "Plan"), effective May 9, 2017, the Corporation may award options to purchase shares of the Corporation’s common stock and grant other stock awards to executives, managers, and key personnel. Upon shareholder approval of the Plan in May 2017, no future awards were granted under the Corporation’s 2007 Stock-Based Compensation Plan, but all outstanding awards previously granted under that plan shall remain outstanding in accordance with their terms. As of January 2, 2021, there were approximately 1.6 million shares available for future issuance under the Plan. The Plan is administered by the Human Resources and Compensation Committee of the Board. Forms of awards issued under the Plan include stock options, restricted stock units based on a service condition ("RSUs"), and restricted stock units based on both performance and service conditions ("PSUs"). The Corporation uses common shares held in treasury to satisfy share option exercises and distributions of shares related to vested RSUs and PSUs. RSUs awarded under the Plan prior to 2020 generally cliff-vest after three years, while RSUs awarded starting in 2020 generally vest ratably over three years. PSUs were awarded starting in 2020, and generally vest at the end of a year period, subject to a performance metric based on the Corporation's cumulative profitability during the period. PSUs and RSUs awarded starting in 2020 generally accrue cash dividends during the vesting periods, with payment made when earned shares are distributed to participants. Stock options awarded to members under the Plan must be at exercise prices equal to or exceeding the fair market value of the Corporation’s common stock on the date of grant. Stock options are generally subject to four-year cliff vesting and must be exercised within 10 years from the date of grant. The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employees' requisite service periods, adjusted for an estimated forfeiture rate for those shares not expected to vest. Additionally, expense related to PSUs is periodically adjusted for the probable number of shares to be awarded at the end of the year performance period. Compensation cost charged against operations for the Plan and the 2017 MSPP described in "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity" in the Notes to Consolidated Financial Statements was as follows (in thousands):
The total income tax benefit recognized in the Consolidated Statements of Comprehensive Income for share-based compensation arrangements was as follows (in thousands):
RSUs The following table summarizes the changes in RSUs:
As of January 2, 2021, there was $1.5 million of unrecognized compensation cost related to RSUs, which the Corporation expects to recognize over a weighted-average period of 0.9 years. The total value of shares vested was as follows (in thousands):
PSUs The following table summarizes the changes in PSUs:
As of January 2, 2021, there was $0.8 million of unrecognized compensation cost related to PSUs, which the Corporation expects to recognize over a weighted-average period of 1.1 years. Stock Options Stock-based compensation expense related to stock options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions by grant year:
There were no stock options granted in 2020. Expected volatilities were based on historical volatility as the Corporation does not expect that future volatility over the expected term of the options is likely to differ from the past. The Corporation used a calculation method based on the historical daily frequency for a period of time equal to the expected term. The Corporation used the current dividend yield as there are no plans to substantially increase or decrease its dividends. The Corporation used historical exercise experience to determine the expected term. The risk-free interest rate was selected based on yields from treasury securities as published by the Federal Reserve equal to the expected term of the options. The amount of stock-based compensation expense recognized during a period is also based on the portion of the stock options that are ultimately expected to vest. The Corporation estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The following table summarizes the changes in outstanding stock options:
A summary of the Corporation’s non-vested stock options and changes during the year are presented below:
As of January 2, 2021, there was $1.2 million of unrecognized compensation cost related to stock option awards, which the Corporation expects to recognize over a weighted-average period of 1.0 years. Information about stock options expected to vest or currently exercisable is as follows:
Other information for the last three years is as follows (in thousands):
Deferred Compensation The following table details deferred compensation, which is a combination of cash and stock, and the affected line item in the Consolidated Balance Sheets where deferred compensation is presented (in thousands):
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Retirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits | Retirement Benefits The Corporation has a defined contribution retirement plan covering substantially all members. The Corporation's annual contribution to the plan is based on member eligible earnings. A portion of the contribution is also based on results of operations, and a portion is contributed in the form of common stock of the Corporation. The following table reconciles the annual contribution (in thousands):
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Post-Retirement Health Care |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post-Retirement Health Care | Post-Retirement Health CareThe Corporation offers a fixed subsidy to certain retirees who choose to participate in a third party insurance plan selected by the Corporation. Guidance on employers’ accounting for other post-retirement plans requires recognition of the overfunded or underfunded status on the balance sheet. Under this guidance, gains and losses, prior service costs and credits, and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end. The following table sets forth the activity and reporting location of the benefit obligation and plan assets (in thousands):
Estimated future benefit payments are as follows (in thousands):
Expected contributions are as follows (in thousands):
The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments. The discount rate used was as follows:
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and overseas operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from to ten years. The exercise of lease renewal options is at the Corporation's sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the lease term unless they are reasonably certain to be exercised. Many of the Corporation's real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation's lease agreements do not contain any material residual value guarantees. The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant. Leases included in the Consolidated Balance Sheets consisted of the following (in thousands):
As of January 2, 2021, approximately 84 percent of the value of the leased assets is for real estate. The remaining 16 percent of the value of the leased assets is for equipment. Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following (in thousands):
Prior to the adoption of ASU 2016-02 at the beginning of 2019, the Company recognized rental expense for operating leases on a straight-line basis over the lease term. Rent expense associated with operating leases was $31.0 million for the year ended December 29, 2018. Maturity of lease liabilities as of January 2, 2021 is as follows (in thousands):
(a)At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has no legally binding minimum lease payments for operating leases signed but not yet commenced. (b)At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $4.6 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities. The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of January 2, 2021:
The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities (in thousands):
As part of the Corporation's continued efforts to drive efficiency and simplification, the Corporation entered into a sale-leaseback transaction in the first quarter of 2018, selling a manufacturing facility and subsequently leasing back a portion of the facility for a term of 10 years. The net proceeds from the sale of the facility of $16.9 million were reflected in "Proceeds from sale of property, plant, and equipment" in the Consolidated Statements of Cash Flows in 2018. In accordance with ASC 840, the $5.1 million gain on the sale of the facility was deferred and was amortized as a reduction to rent expense evenly over the term of the lease. In accordance with the ASU 2016-02 adoption, the remaining unamortized deferred gain related to the sale-leaseback as of December 29, 2018 was recognized directly in "Retained earnings" in the Condensed Consolidated Balance Sheets in the first quarter of 2019 as a cumulative-effect adjustment as the Corporation transferred control of the asset.
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Leases | Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and overseas operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from to ten years. The exercise of lease renewal options is at the Corporation's sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the lease term unless they are reasonably certain to be exercised. Many of the Corporation's real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation's lease agreements do not contain any material residual value guarantees. The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant. Leases included in the Consolidated Balance Sheets consisted of the following (in thousands):
As of January 2, 2021, approximately 84 percent of the value of the leased assets is for real estate. The remaining 16 percent of the value of the leased assets is for equipment. Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following (in thousands):
Prior to the adoption of ASU 2016-02 at the beginning of 2019, the Company recognized rental expense for operating leases on a straight-line basis over the lease term. Rent expense associated with operating leases was $31.0 million for the year ended December 29, 2018. Maturity of lease liabilities as of January 2, 2021 is as follows (in thousands):
(a)At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has no legally binding minimum lease payments for operating leases signed but not yet commenced. (b)At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $4.6 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities. The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of January 2, 2021:
The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities (in thousands):
As part of the Corporation's continued efforts to drive efficiency and simplification, the Corporation entered into a sale-leaseback transaction in the first quarter of 2018, selling a manufacturing facility and subsequently leasing back a portion of the facility for a term of 10 years. The net proceeds from the sale of the facility of $16.9 million were reflected in "Proceeds from sale of property, plant, and equipment" in the Consolidated Statements of Cash Flows in 2018. In accordance with ASC 840, the $5.1 million gain on the sale of the facility was deferred and was amortized as a reduction to rent expense evenly over the term of the lease. In accordance with the ASU 2016-02 adoption, the remaining unamortized deferred gain related to the sale-leaseback as of December 29, 2018 was recognized directly in "Retained earnings" in the Condensed Consolidated Balance Sheets in the first quarter of 2019 as a cumulative-effect adjustment as the Corporation transferred control of the asset.
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Guarantees, Commitments and Contingencies |
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Jan. 02, 2021 | |
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 $24 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and banker's acceptances to guarantee certain payments to overseas suppliers; as of January 2, 2021, there were no outstanding amounts related to these types of guarantees. The letters of credit, bonds, and banker's acceptances reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, and other claims. It is the Corporation's opinion, after consultation with legal counsel, that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation's financial condition, cash flows, or on the Corporation's quarterly or annual operating results when resolved in a future period.
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Reportable Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segment Information | Reportable Segment Information As discussed in "Note 1. Nature of Operations", in the second quarter of 2020, the Corporation rebranded its reportable segments. These changes did not impact the Corporation's consolidated financial statements or disclosures. Management views the Corporation as being in two reportable segments based on industries: workplace furnishings (formerly office furniture) and residential building products (formerly hearth products), with the former being the principal segment. The aggregated workplace furnishings segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. The residential building products segment manufactures and markets a full array of gas, wood, electric, and pellet fueled fireplaces, inserts, stoves, facings, and accessories. For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation’s corporate operations. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, IT infrastructure, and corporate office real estate and related equipment. No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation’s primary market and capital investments are concentrated in the United States. Reportable segment data reconciled to the Corporation's consolidated financial statements was as follows (in thousands):
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year-end | Fiscal year-end – The Corporation follows a 52/53-week fiscal year, which ends on the Saturday nearest December 31. Fiscal year 2020 ended on January 2, 2021, fiscal year 2019 ended on December 28, 2019, and fiscal year 2018 ended on December 29, 2018. The financial statements for fiscal year 2020 are on a 53-week basis, while 2019 and 2018 are on a 52-week basis. A 53-week year occurs approximately every sixth year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.
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Cash, Cash Equivalents and Investments | Cash, Cash Equivalents, and Investments Cash and cash equivalents generally consist of cash and money market accounts. The fair value approximates the carrying value due to the short duration of the securities. These securities have original maturity dates not exceeding three months. The Corporation has short-term investments with maturities of less than one year, as well as investments with maturities between one and five years. Management classifies investments in marketable securities at the time of purchase and reevaluates such classification at each balance sheet date. Debt securities, including government and corporate bonds, are classified as available-for-sale and stated at current market value with unrealized gains and losses included as a separate component of equity, net of any related tax effect. The specific identification method is used to determine realized gains and losses on the trade date. The Corporation's equity investment consists of an investment in a private entity and is carried at cost, as it does not have a readily determinable fair value.
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Receivables | ReceivablesThe allowance for doubtful accounts is developed based on several factors including overall customer credit quality, historical write-off experience, and specific account analyses projecting the ultimate collectability of the account. In the second quarter of 2020 the Corporation adjusted its method for determining the allowance for doubtful accounts in response to the COVID-19 pandemic. The impact of this adjustment was not material to the financial statements. The adoption of ASU No. 2016-13 did not significantly impact the Corporation's accounting policies or estimation methods related to the allowance for doubtful accounts. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The Corporation values its inventory at the lower of cost or net realizable value. Inventories included in the Consolidated Balance Sheets consisted of the following (in thousands):
During 2020 and 2019, inventory quantities were reduced at certain reporting units. This reduction resulted in a liquidation of LIFO inventory quantities carried at higher or lower costs prevailing in prior years as compared with the cost of current year purchases, the effect of which decreased cost of goods sold by approximately $0.6 million in 2020 and $2.2 million in 2019. If the FIFO method had been in use, inventories would have been $31.0 million and $30.7 million higher than reported as of January 2, 2021 and December 28, 2019, respectively.
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Property, Plant and Equipment | Property, Plant, and EquipmentProperty, plant, and equipment are carried at cost. Expenditures for repairs and maintenance are expensed as incurred. Major improvements that materially extend the useful lives of the assets are capitalized. Depreciation has been computed using the straight-line method over estimated useful lives: land improvements, 10 – 20 years; buildings, 10 – 40 years; and machinery and equipment, 3 – 12 years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Lived Assets | Long-Lived Assets The Corporation evaluates long-lived assets for indicators of impairment as events or changes in circumstances occur indicating that an impairment risk may be present. The judgments regarding the existence of impairment are based on business and market conditions, operational performance, and estimated future cash flows. If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded to adjust the asset to its estimated fair value.
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Corporation evaluates its goodwill for impairment on an annual basis during the fourth quarter or whenever indicators of impairment exist. Asset impairment charges associated with the Corporation’s goodwill impairment testing are discussed in "Note 6. Goodwill and Other Intangible Assets" in the Notes to Consolidated Financial Statements. The Corporation reviews goodwill at the reporting unit level within its workplace furnishings and residential building products operating segments. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. The accounting standards for goodwill permit entities to first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the quantitative test is required, the Corporation estimates the fair value of its reporting units. In estimating the fair value, the Corporation relies on an average of the income approach and the market approach. This estimated fair value is compared to the carrying value of the reporting unit and an impairment is recorded if the estimate is less than the carrying value. In the income approach, the estimate of fair value of each reporting unit is based on management’s projection of revenues, gross margin, operating costs, and cash flows considering historical and estimated future results, general economic and market conditions, as well as the impact of planned business and operational strategies. The valuations employ present value techniques to measure fair value and consider market factors. In the market approach, the Corporation utilizes the guideline company method, which involves calculating valuation multiples based on operating data from guideline publicly-traded companies. These multiples are then applied to the operating data for the reporting units and adjusted for factors similar to those used in the discounted cash flow analysis. Management believes the assumptions used for the impairment test are consistent with those utilized by a market participant in performing similar valuations of its reporting units. Management bases its fair value estimates on assumptions they believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Actual results may differ from those estimates. The Corporation also evaluates the fair value of indefinite-lived trade names on an annual basis during the fourth quarter or whenever an indication of impairment exists. The estimate of the fair value of the trade names is based on a discounted cash flows model using inputs which include: projected revenues, assumed royalty rates that would be payable if the trade names were not owned, and discount rates. The Corporation has definite-lived intangible assets that are amortized over their estimated useful lives. Impairment losses are recognized if the carrying amount of an intangible asset subject to amortization is not recoverable from expected future cash flows and its carrying amount exceeds its fair value.
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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. 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 claims incurred could differ from the original estimates, requiring adjustments to the allowance.
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Revenue Recognition | Revenue Recognition The Corporation implemented ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), at the beginning of fiscal 2018 using the modified-retrospective method, which required this guidance to be applied prospectively to revenue transactions completed on or after the effective date. Given the nature of the Corporation's revenue transactions, this guidance did not have a material impact on the Corporation's results of operations or financial position. 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. 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. Accounting Policies and Practical Expedients: Shipping and Handling Activities - The Corporation elected to apply the accounting policy election permitted in the revenue accounting standard, which allows an entity to account for shipping and handling activities that occur after control is transferred as fulfillment activities. The Corporation accrues for shipping and handling costs at the same time revenue is recognized, which is in accordance with the policy election. When shipping and handling activities occur prior to the customer obtaining control of the good(s), they are considered fulfillment activities rather than a performance obligation and the costs are accrued for as incurred. Sales Taxes - The Corporation elected to apply the accounting policy election permitted in the revenue accounting standard, which allows an entity to exclude from the measurement of the transaction price all taxes assessed by a governmental authority associated with the transaction, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows the Corporation to present revenue net of these certain types of taxes. Incremental Costs of Obtaining a Contract - The Corporation elected the practical expedient permitted in the revenue accounting standard, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year. Significant Financing Component - The Corporation elected the practical expedient permitted in the revenue accounting standard, which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Corporation's contracts are typically less than one year in length, consideration will not be adjusted. Remaining Performance Obligation - The Corporation's backlog orders are typically cancelable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation 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. These accounting policies and practical expedients have been applied consistently to all revenue transactions.Freight Expense Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows (in thousands):
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Leases | Leases The Corporation implemented ASU No. 2016-02, Leases (Topic 842), at the beginning of fiscal 2019 using the modified-retrospective transition approach. The new standard requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use ("ROU") asset and lease liability. Implementation of ASU No. 2016-02 increased retained earnings by $3.0 million, primarily resulting from the recognition of the remaining deferred gain on a 2018 sale-leaseback transaction directly into retained earnings as a transitional adjustment. The Corporation recognized $73.8 million in ROU assets and $82.0 million in lease liabilities as a result of the implementation of this standard. Accounting Policies and Practical Expedients: •The Corporation has made an accounting election by class of underlying assets to not separate non-lease components of a contract from the lease components to which they relate for all classes of assets except for embedded leases. •The Corporation has elected not to restate prior period financial statements for the effects of the new standard. Required ASC 840 disclosures for periods prior to 2019 have been provided. •The Corporation has elected not to use hindsight in determining the lease term and in assessing the likelihood that a lessee purchase option will be exercised. •The Corporation has elected for all asset classes to not recognize ROU assets and lease liabilities for leases that at the acquisition date or business combination date have a remaining lease term of twelve months or less.
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Research and Development Costs | Research and Development CostsResearch and development costs relating to development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. These costs include salaries, contractor fees, prototype costs, and administrative fees. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based CompensationThe Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and generally recognizes cost over the requisite service period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Corporation uses an asset and liability approach that takes into account guidance related to uncertain tax positions and requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred income taxes are provided to reflect differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements.
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Earnings Per Share | Earnings Per ShareBasic earnings per share are based on the weighted-average number of common shares outstanding during the year. Shares potentially issuable under stock options, restricted stock units, and common stock equivalents under the Corporation's deferred compensation plans have been considered outstanding for purposes of the diluted earnings per share calculation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Areas requiring significant use of management estimates relate to goodwill and intangibles, accruals for self-insured medical claims, workers’ compensation, legal contingencies, general liability and auto insurance claims, valuation of long-lived assets, and estimates of income taxes. Other areas requiring use of management estimates relate to allowance for doubtful accounts, inventory allowances, marketing program accruals, warranty accruals, and useful lives for depreciation and amortization. Actual results could differ from those estimates.
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Self-Insurance | Self-Insurance The Corporation is primarily self-insured for general, auto, and product liability, workers’ compensation, and certain employee health benefits. Certain risk exposures are mitigated through the use of independent third party stop loss insurance coverages. The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows (in thousands):
The preceding table excludes self-insured member health benefits liabilities of $6.0 million and $5.6 million as of January 2, 2021 and December 28, 2019, respectively. The Corporation’s policy is to accrue amounts in accordance with the actuarially determined liabilities. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost inflation, and magnitude of change in actual experience development could cause these estimates to change in the future.
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Foreign Currency Translations | Foreign Currency Translations Foreign currency financial statements of foreign operations, where the local currency is the functional currency, are translated using exchange rates in effect at period end for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component of Shareholders' Equity. Immaterial gains and losses on foreign currency transactions are included in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income.
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Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments and also issued subsequent amendments to the initial guidance: ASU 2018-09, ASU 2019-04, ASU 2019-05, and ASU 2019-11 (collectively, Topic 326). Topic 326 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses by requiring consideration of a broader range of reasonable and supportable information and is intended to provide financial statement users with more useful information about expected credit losses on financial instruments. The Corporation adopted Topic 326 in the first quarter of fiscal 2020 using a modified retrospective transition approach. The adoption resulted in a cumulative effect decrease to retained earnings of $0.1 million to reflect a change in the allowance for doubtful accounts. Additionally, Topic 326 requires the allowance for doubtful accounts (contra-asset) to be presented separately in the Consolidated Balance Sheets. No other financial line items were materially impacted by the adoption. See Receivables section of "Note 2. Summary of Significant Accounting Policies" for additional information regarding the Corporation's methodology for determining the allowance for doubtful accounts. Topic 326 also introduced new accounting and reporting requirements related to available-for-sale debt securities, including consideration of whether an allowance for credit losses should be established. The Corporation has determined that such an allowance is not required with respect to its available-for-sale debt security portfolio. See "Note 9. Fair Value Measurements" for fair value information of the Corporation's available-for sale debt securities and where such are recorded in the Consolidated Balance Sheets. Immaterial amounts of accrued interest receivable related to the Corporation's portfolio are recorded in "Prepaid expenses and other current assets" and "Other assets".
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Reclassifications | Reclassifications Certain reclassifications have been made within the financial statements to conform to the current year presentation.
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Fair Value Measurements of Financial Instruments | For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, and deferred stock-based compensation. The marketable securities are comprised of money market funds, government securities, and corporate bonds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segment Information | As discussed in "Note 1. Nature of Operations", in the second quarter of 2020, the Corporation rebranded its reportable segments. These changes did not impact the Corporation's consolidated financial statements or disclosures. Management views the Corporation as being in two reportable segments based on industries: workplace furnishings (formerly office furniture) and residential building products (formerly hearth products), with the former being the principal segment. The aggregated workplace furnishings segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. The residential building products segment manufactures and markets a full array of gas, wood, electric, and pellet fueled fireplaces, inserts, stoves, facings, and accessories. For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated 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.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents and Investments | Cash, cash equivalents, and investments are reflected in the Consolidated Balance Sheets and were as follows (in thousands):
The following table summarizes the amortized cost basis of the debt securities (in thousands):
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Allowance for Doubtful Accounts | The following table summarizes the change in the allowance for doubtful accounts (in thousands):
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Schedule Of Inventory Current Table | Inventories included in the Consolidated Balance Sheets consisted of the following (in thousands):
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Schedule of Property, Plant and Equipment | Total depreciation expense was as follows (in thousands):
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Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses are reflected in the Consolidated Balance Sheets and were as follows (in thousands):
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Schedule of Product Warranties | Activity associated with warranty obligations was as follows (in thousands):
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Schedule of Product Development Expense | The amounts charged against income and recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income were as follows (in thousands):
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Schedule of Freight Expense | Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows (in thousands):
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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") (in thousands, except per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive (in thousands):
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Schedule of Insurance Reserves | The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows (in thousands):
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Revenue from Contracts with Customers (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | Revenue from contracts with customers disaggregated by product category is as follows (in thousands):
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Contract with Customer, Asset and Liability | Contract assets and contract liabilities were as follows (in thousands):
The index below indicates the line item in the Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the year ended January 2, 2021 were as follows (in thousands):
Changes in contract asset and contract liability balances during the year ended December 28, 2019 were as follows (in thousands):
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Acquisitions (Tables) |
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Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset Acquisition | The provisional DPG purchase price allocation and estimated amortization periods of identified intangible assets as of the date of acquisition is as follows (dollars in thousands):
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Supplemental Cash Flow Information (Tables) |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | The Corporation's cash payments for interest, income taxes, and non-cash investing and financing activities are as follows (in thousands):
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Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets and Goodwill | Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following (in thousands):
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Schedule of Goodwill | The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):
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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 Corporation’s Consolidated Balance Sheets (in thousands):
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Finite-lived Intangible Assets Amortization Expense | Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows (in thousands):
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Schedule of Expected Amortization Expense Table | Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows (in millions):
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Schedule of Indefinite-Lived Intangible Assets | These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Consolidated Balance Sheets (in thousands):
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Long-Term Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt is as follows (in thousands):
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Schedule of Maturities of Long-term Debt | Aggregate maturities of long-term debt are as follows (in thousands):
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows (in thousands):
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Schedule of Deferred Tax Assets and Liabilities | Significant components of the Corporation’s deferred tax liabilities and assets are as follows (in thousands):
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Summary of Valuation Allowance | The valuation allowance for deferred tax assets is as follows (in thousands):
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Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):
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Fair Value Measurements of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis Table | Financial instruments measured at fair value were as follows (in thousands):
The index below indicates the line item in the 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 - "Prepaid expenses and other current assets"; Long-term portion - "Other Assets" (4) Current portion - "Accounts payable and accrued expenses"; Long-term portion - "Other Long-Term Liabilities" (5) Current portion - "Current maturities of other long-term obligations"; Long-term portion - "Other Long-Term Liabilities"
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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income Loss Table | The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable (in thousands):
Amounts in parentheses indicate reductions to equity.
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Reclassification out of Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income (loss) (in thousands):
Amounts in parentheses indicate reductions to profit.
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Schedule of Stock by Class | Common stock was issued under the Director Plans as follows:
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Schedule of Dividends Declared and Paid Per Share | The Corporation declared and paid cash dividends per common share as follows (in dollars):
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Schedule of Repurchase Agreements | The following table summarizes shares repurchased and settled by the Corporation (in thousands, except share and per share data):
|
Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Costs | Compensation cost charged against operations for the Plan and the 2017 MSPP described in "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity" in the Notes to Consolidated Financial Statements was as follows (in thousands):
The total income tax benefit recognized in the Consolidated Statements of Comprehensive Income for share-based compensation arrangements was as follows (in thousands):
The following table details deferred compensation, which is a combination of cash and stock, and the affected line item in the Consolidated Balance Sheets where deferred compensation is presented (in thousands):
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Schedule of Share-based Compensation, Restricted Stock Units Activity | The following table summarizes the changes in RSUs:
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Share-based Payment Arrangement, Performance Shares, Activity | The following table summarizes the changes in PSUs:
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Schedule of Valuation Assumptions | Stock-based compensation expense related to stock options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions by grant year:
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Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the changes in outstanding stock options:
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Schedule of Nonvested Restricted Stock Units Activity | A summary of the Corporation’s non-vested stock options and changes during the year are presented below:
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Stock Option Vested or Expected to Vest and are Exercisable | Information about stock options expected to vest or currently exercisable is as follows:
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Schedule of Share-based Compensation Arrangement Other Information | Other information for the last three years is as follows (in thousands):
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Retirement Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs of Retirement Plans | The following table reconciles the annual contribution (in thousands):
|
Post-Retirement Health Care (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity in Benefit Obligation and Plan Assets | The following table sets forth the activity and reporting location of the benefit obligation and plan assets (in thousands):
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Schedule of Expected Benefit Payments | Estimated future benefit payments are as follows (in thousands):
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Schedule of Expected Contributions | Expected contributions are as follows (in thousands):
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Schedule of Assumptions Used | The discount rate used was as follows:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases included in the Condensed Consolidated Balance Sheets | Leases included in the Consolidated Balance Sheets consisted of the following (in thousands):
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Lease Costs Included in the Condensed Consolidated Statements on Comprehensive Income | Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following (in thousands):
The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities (in thousands):
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Maturities of Finance Lease Liabilities | Maturity of lease liabilities as of January 2, 2021 is as follows (in thousands):
(a)At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has no legally binding minimum lease payments for operating leases signed but not yet commenced. (b)At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $4.6 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities.
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Maturities of Operating Lease Liabilities | Maturity of lease liabilities as of January 2, 2021 is as follows (in thousands):
(a)At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has no legally binding minimum lease payments for operating leases signed but not yet commenced. (b)At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $4.6 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities.
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Weighted Average Lease Terms and Discount Rates, Lessee | The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of January 2, 2021:
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Reportable Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Reportable segment data reconciled to the Corporation's consolidated financial statements was as follows (in thousands):
|
Summary of Significant Accounting Policies (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | $ 116,120 | $ 52,073 |
Short-term investments | 1,687 | 1,096 |
Other Assets | 13,412 | 13,066 |
Amortized cost basis of debt securities | 13,143 | 12,542 |
Debt securities | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 1,687 | 1,096 |
Other Assets | 11,912 | 11,566 |
Equity investment | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other Assets | 1,500 | 1,500 |
Cash and money market accounts | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 116,120 | 52,073 |
Short-term investments | 0 | 0 |
Other Assets | $ 0 | $ 0 |
Summary of Significant Accounting Policies (Allowance for doubtful accounts) (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 3,559 | $ 3,867 | $ 1,904 |
Current period provision | 3,625 | 508 | 2,440 |
Amounts written off | (1,685) | (1,099) | (461) |
Recoveries and other adjustments | 15 | 283 | (16) |
Balance at end of period | $ 5,514 | $ 3,559 | $ 3,867 |
Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Inventory, Net [Abstract] | ||
Finished products | $ 98,527 | $ 118,633 |
Materials and work in process | 70,264 | 75,526 |
Last-in, first-out ("LIFO") allowance | (30,980) | (30,694) |
Inventories, net | $ 137,811 | $ 163,465 |
Inventory valued by the LIFO costing method | 75.00% | 65.00% |
Effect of LIFO inventory, decrease (increase) in cost of goods sold | $ (600) | $ (2,200) |
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 53,420 | $ 53,022 | $ 51,063 |
Land improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Land improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 12 years |
Summary of Significant Accounting Policies (Accounts Payable) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Accounting Policies [Abstract] | ||
Trade accounts payable | $ 190,527 | $ 227,557 |
Compensation | 49,439 | 53,147 |
Profit sharing and retirement expense | 26,414 | 28,264 |
Marketing expenses | 31,969 | 46,344 |
Freight | 15,288 | 15,998 |
Customer deposits | 21,101 | 8,628 |
Other accrued expenses | 78,900 | 73,264 |
Accounts payable and accrued expenses | $ 413,638 | $ 453,202 |
Summary of Significant Accounting Policies (Product Warranties) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Product Warranty Accrual [Roll Forward] | |||||
Balance at beginning of period | $ 15,865 | $ 15,450 | $ 15,388 | ||
Accruals for warranties issued during period | 9,380 | 11,035 | 12,316 | ||
Adjustments related to pre-existing warranties | 127 | 906 | 351 | ||
Settlements made during the period | (9,263) | (11,526) | (12,605) | ||
Balance at end of period | 16,109 | 15,865 | 15,450 | ||
Product Warranties Disclosures [Abstract] | |||||
Current - in the next twelve months | $ 5,918 | $ 7,940 | |||
Long-term - beyond one year | 10,191 | 7,925 | |||
Standard product warranty accrual | $ 16,109 | $ 15,450 | $ 15,450 | $ 16,109 | $ 15,865 |
Summary of Significant Accounting Policies (Research and Development Costs) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Accounting Policies [Abstract] | |||
Research and development costs | $ 35,318 | $ 34,699 | $ 33,420 |
Summary of Significant Accounting Policies (Freight Expenses) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Cost of sales | $ 1,234,243 | $ 1,413,185 | $ 1,422,857 |
Freight expense | |||
Disaggregation of Revenue [Line Items] | |||
Cost of sales | $ 98,417 | $ 123,667 | $ 134,190 |
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Numerator: | |||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 41,917 | $ 110,505 | $ 93,377 |
Denominators: | |||
Denominator for basic EPS weighted- average common shares outstanding (in shares) | 42,689,000 | 43,101,000 | 43,639,000 |
Potentially dilutive shares from stock-based compensation plans (in shares) | 267,000 | 394,000 | 689,000 |
Denominator for diluted EPS (in shares) | 42,956,000 | 43,495,000 | 44,328,000 |
Earnings per share - basic (in dollars per share) | $ 0.98 | $ 2.56 | $ 2.14 |
Earnings per share - diluted (in dollars per share) | $ 0.98 | $ 2.54 | $ 2.11 |
Stock Compensation Plan | |||
Denominators: | |||
Common stock equivalents excluded because their inclusion would be anti-dilutive (in shares) | 3,110,000 | 2,131,000 | 1,508,000 |
Summary of Significant Accounting Policies (Self-Insurance) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Accounting Policies [Abstract] | ||
General, auto, product, and workers' compensation liabilities | $ 25,666 | $ 26,233 |
Self-insured member health benefits liabilities | $ 6,000 | $ 5,600 |
Summary of Significant Accounting Policies (Recently Adopted Accounting Standards) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Mar. 28, 2020 |
Dec. 28, 2019 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (517,994) | $ (529,723) | |
Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 100 |
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | $ 1,955,363 | $ 2,246,947 | $ 2,257,895 |
Workplace Furnishings | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 1,365,711 | 1,697,186 | 1,706,092 |
Workplace Furnishings | Systems and storage | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 741,183 | 951,965 | 1,015,900 |
Workplace Furnishings | Seating | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 489,342 | 583,245 | 598,722 |
Workplace Furnishings | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 135,186 | 161,976 | 91,470 |
Residential building products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | $ 589,652 | $ 549,761 | $ 551,803 |
Revenue from Contracts with Customers Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Trade receivables | $ 207,971 | $ 278,124 |
Contract assets (current) | 761 | 857 |
Contract assets (long-term) | 2,486 | 2,700 |
Contract liabilities | $ 53,070 | $ 54,972 |
Revenue from Contracts with Customers Change in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Contract assets increase (decrease) | ||
Contract assets recognized | $ 358 | $ 1,313 |
Reclassification of contract assets to contra-revenue | (668) | (473) |
Net change | (310) | 840 |
Contract liabilities (increase) decrease | ||
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied | (122,501) | (147,830) |
Contract liabilities paid | 136,876 | 138,015 |
Cash received in advance and not recognized as revenue | (82,251) | (67,938) |
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied | 76,047 | 67,639 |
Impact of business combination | (6,269) | |
Net change | $ 1,902 | $ (10,114) |
Revenue from Contracts with Customers Comprehensive Income related to Contract Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to contract liabilities | $ 8.6 | $ 8.3 |
Acquisitions - Additional Information (Details) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020
USD ($)
|
Jan. 02, 2021
USD ($)
company
|
Dec. 28, 2019
USD ($)
|
Dec. 29, 2018
USD ($)
|
|
Schedule Of Asset Acquisition [Line Items] | ||||
Goodwill | $ 292,434 | $ 270,820 | $ 270,788 | |
Three Small Residential Building Products Companies | ||||
Schedule Of Asset Acquisition [Line Items] | ||||
Number of assets acquired | company | 3 | |||
Payments for asset acquisitions | $ 11,000 | |||
Goodwill | $ 10,300 | |||
Design Public Group | ||||
Schedule Of Asset Acquisition [Line Items] | ||||
Goodwill | $ 39,800 | |||
Asset acquisition | $ 50,040 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Cash paid for: | |||
Interest, net of capitalized interest | $ 7,472 | $ 9,867 | $ 9,882 |
Income taxes | 31,441 | 21,181 | 11,465 |
Changes in accrued expenses due to: | |||
Purchases of property and equipment | 6,406 | (8,476) | 5,895 |
Purchases of capitalized software | $ 223 | $ 653 | $ (2,497) |
Goodwill and Other Intangible Assets (Schedule of Goodwill and Other Intangible Assets) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 292,434 | $ 270,820 | $ 270,788 |
Definite-lived intangible assets | 139,863 | 146,040 | |
Indefinite-lived intangible assets | 26,599 | 28,849 | |
Total goodwill and other intangible assets | $ 458,896 | $ 445,709 |
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Net definite-lived intangible assets | |||
Gross | $ 283,093 | $ 288,444 | |
Accumulated Amortization | 143,230 | 142,404 | |
Net | 139,863 | 146,040 | |
Capitalized software | 19,313 | 18,130 | $ 17,109 |
Other definite-lived intangibles | 4,950 | 6,275 | $ 6,615 |
Amortization expense | |||
2021 | 27,400 | ||
2022 | 24,400 | ||
2023 | 20,300 | ||
2024 | 18,100 | ||
2025 | 16,400 | ||
Patents | |||
Net definite-lived intangible assets | |||
Gross | 0 | 40 | |
Accumulated Amortization | 0 | 40 | |
Net | 0 | 0 | |
Software | |||
Net definite-lived intangible assets | |||
Gross | 182,127 | 176,836 | |
Accumulated Amortization | 78,619 | 67,541 | |
Net | 103,508 | 109,295 | |
Trademarks and trade names | |||
Net definite-lived intangible assets | |||
Gross | 9,964 | 7,564 | |
Accumulated Amortization | 3,546 | 3,381 | |
Net | 6,418 | 4,183 | |
Customer lists and other | |||
Net definite-lived intangible assets | |||
Gross | 91,002 | 104,004 | |
Accumulated Amortization | 61,065 | 71,442 | |
Net | $ 29,937 | $ 32,562 |
Goodwill and Other Intangible Assets (Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | $ 26,599 | $ 28,849 |
Trademarks and trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | $ 26,599 | $ 28,849 |
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
May 31, 2018 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Total debt | $ 175,365 | $ 175,229 | |
Deferred debt issuance costs | (476) | (561) | |
Less: Current maturities | 841 | 790 | |
Long-term debt | $ 174,524 | $ 174,439 | |
Revolving credit facility with interest at a variable rate (January 2, 2021 - 1.2%; December 28, 2019 - 2.8%) | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 1.20% | 2.80% | |
Total debt | $ 75,000 | $ 75,000 | |
Fixed rate notes due in 2025 with an interest rate of 4.22% | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 0.0422% | 4.22% | |
Total debt | $ 50,000 | 50,000 | |
Fixed rate notes due in 2028 with an interest rate of 4.40% | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 0.044% | 4.40% | |
Total debt | $ 50,000 | 50,000 | |
Other amounts | |||
Debt Instrument [Line Items] | |||
Total debt | $ 841 | $ 790 |
Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) $ in Thousands |
Jan. 02, 2021
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 75,000 |
2024 | 0 |
2025 | 50,000 |
Thereafter | $ 50,000 |
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Current: | |||
Federal | $ 18,365 | $ 20,122 | $ 15,663 |
State | 6,030 | 5,418 | 4,877 |
Foreign | 146 | 662 | 936 |
Current provision | 24,541 | 26,202 | 21,476 |
Deferred: | |||
Federal | (9,100) | 4,140 | 4,002 |
State | (2,395) | 1,634 | 1,320 |
Foreign | (580) | 235 | (1,399) |
Deferred provision | (12,075) | 6,009 | 3,923 |
Total income tax expense | $ 12,466 | $ 32,211 | $ 25,399 |
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Federal statutory tax expense | $ 11,420 | $ 29,970 | $ 24,943 |
State taxes, net of federal tax effect | 2,387 | 5,159 | 3,997 |
Credit for increasing research activities | (3,891) | (4,050) | (3,950) |
Valuation allowance | 1,264 | 98 | (1,141) |
Goodwill impairment | 1,453 | 0 | 0 |
Equity based compensation | 106 | 639 | (666) |
Change in uncertain tax positions | (335) | (357) | 766 |
Foreign income tax rate differential | (44) | 596 | 124 |
Other – net | 106 | 156 | 1,326 |
Total income tax expense | $ 12,466 | $ 32,211 | $ 25,399 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Operating Loss Carryforwards [Line Items] | ||||
Adjustment for completion of 2019 return | $ (106) | $ (156) | $ (1,326) | |
Unrecognized tax benefits that would impact effective tax rate | 2,200 | $ 2,600 | ||
Federal Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Adjustment for completion of 2019 return | $ 400 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 300 | |||
Tax credit carryforward, amount | $ 1,100 | |||
Tax credit carryforward expiration period | 20 years | |||
Valuation Allowance of Deferred Tax Assets | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowances and reserves increase | $ 1,300 |
Income Taxes (Valuation Allowance for Deferred Tax Asset) (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
Dec. 30, 2017 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 11,524 | $ 10,260 | $ 7,153 | $ 8,664 |
Charged to expenses | 1,264 | 98 | (839) | |
Adjustments to balance sheet | 0 | (3,009) | 672 | |
Balance at end of period | $ 11,524 | $ 10,260 | $ 7,153 |
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 2,578 | $ 2,937 |
Increases in positions taken in a prior period | 53 | 14 |
Decreases in positions taken in a prior period | 0 | (127) |
New positions taken in a current period | 364 | 562 |
Decrease due to lapse of statute of limitations | (768) | (808) |
Balance at end of period | $ 2,227 | $ 2,578 |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Director Plan Issued Common Stock) (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Director plan | |||
Class of Stock [Line Items] | |||
Corporation common stock issued (shares) | 37,833 | 37,269 | 27,745 |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Dividends Declared and Paid per Share) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Equity [Abstract] | |||
Dividends (in dollars per share) | $ 1.22 | $ 1.21 | $ 1.17 |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Common Stock Issued) (Details) - Purchase Plan - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Class of Stock [Line Items] | |||
Common stock issued (shares) | 92,701 | 76,041 | 74,020 |
Common stock issued at average price (in dollars per share) | $ 25.30 | $ 30.67 | $ 32.19 |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Share Repurchase) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Class of Stock [Line Items] | |||
Purchase of HNI Corporation common stock | $ 6,764 | $ 83,887 | $ 30,452 |
Common Stock | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (shares) | 214,200 | 2,286,200 | 755,221 |
Average price of shares repurchased during period (in dollars per share) | $ 29.83 | $ 36.70 | $ 38.96 |
Cash purchase price | $ (6,390) | $ (83,907) | $ (29,424) |
Purchases unsettled as of quarter end | 0 | 374 | 354 |
Prior year purchases settled in current year | (374) | (354) | (1,382) |
Purchase of HNI Corporation common stock | $ 6,764 | $ 83,887 | $ 30,452 |
Stock-Based Compensation (Compensation Cost) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Share-based Payment Arrangement [Abstract] | |||
Compensation cost | $ 7,827 | $ 6,830 | $ 7,317 |
Stock-Based Compensation (Income Tax Benefit) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Share-based Payment Arrangement [Abstract] | |||
Income tax benefit | $ 1,925 | $ 1,545 | $ 1,582 |
Stock-Based Compensation (RSU Activity) (Details) - RSUs - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Number of Shares | |||
Nonvested, Beginning Balance (shares) | 21,612 | 45,724 | 37,000 |
Granted (shares) | 173,766 | 10,000 | 23,224 |
Vested (shares) | (6,968) | (24,823) | (12,000) |
Forfeited (shares) | (5,930) | (9,289) | (2,500) |
Nonvested, Ending Balance (shares) | 182,480 | 21,612 | 45,724 |
Weighted Average Grant-Date Fair Value | |||
Outstanding, Beginning Balance (in dollars per share) | $ 38.41 | $ 36.49 | $ 38.38 |
Granted (in dollars per share) | 36.78 | 36.05 | 40.44 |
Vested (in dollars per share) | 40.77 | 33.30 | 51.54 |
Forfeited (in dollars per share) | 37.50 | 40.22 | 28.90 |
Outstanding, Ending Balance (in dollars per share) | $ 36.80 | $ 38.41 | $ 36.49 |
Stock-Based Compensation (RSU's Vested) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of shares vested | $ 284 | $ 827 | $ 618 |
Stock-Based Compensation (PSU Stock Option Activity) (Details) - PSU |
12 Months Ended |
---|---|
Jan. 02, 2021
$ / shares
shares
| |
Number of Shares | |
Nonvested, Beginning Balance (shares) | shares | 0 |
Granted (shares) | shares | 157,266 |
Vested (shares) | shares | 0 |
Forfeited (shares) | shares | (9,440) |
Nonvested, Ending Balance (shares) | shares | 147,826 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 37.64 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 38.08 |
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 37.62 |
Stock-Based Compensation (Valuation Assumptions) (Details) |
12 Months Ended | |
---|---|---|
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Share-based Payment Arrangement [Abstract] | ||
Expected term | 5 years | 5 years |
Expected volatility (weighted-average) | 33.86% | 34.12% |
Expected dividend yield (weighted-average) | 2.98% | 2.97% |
Risk-free interest rate (weighted-average) | 2.52% | 2.66% |
Stock-Based Compensation (Outstanding Stock Option Activity) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Number of Shares | |||
Outstanding, Beginning Balance (shares) | 3,222,725 | 3,627,005 | 3,562,284 |
Granted (shares) | 0 | 637,763 | 788,301 |
Exercised (shares) | (188,734) | (921,900) | (647,759) |
Forfeited or Expired (shares) | (27,813) | (120,143) | (75,821) |
Outstanding, Ending Balance (shares) | 3,006,178 | 3,222,725 | 3,627,005 |
Weighted Average Grant-Date Fair Value | |||
Outstanding, Beginning Balance (in dollars per share) | $ 39.24 | $ 36.89 | $ 34.63 |
Granted (in dollars per share) | 39.64 | 38.53 | |
Exercised (in dollars per share) | 29.24 | 30.29 | 26.28 |
Forfeited or Expired (in dollars per share) | 42.38 | 39.29 | 38.36 |
Outstanding, Ending Balance (in dollars per share) | $ 39.84 | $ 39.24 | $ 36.89 |
Stock-Based Compensation (Non-vested Stock Option Activity) (Details) - Nonvested Awards |
12 Months Ended |
---|---|
Jan. 02, 2021
$ / shares
shares
| |
Number of Shares | |
Nonvested, Beginning Balance (shares) | shares | 1,602,573 |
Vested (shares) | shares | (385,648) |
Forfeited (shares) | shares | (21,608) |
Nonvested, Ending Balance (shares) | shares | 1,195,317 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 10.32 |
Vested (in dollars per share) | $ / shares | 9.36 |
Forfeited (in dollars per share) | $ / shares | 10.60 |
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 10.62 |
Stock-Based Compensation (Stock Option Vested or Expected to Vest and are Exercisable) (Details) $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Jan. 02, 2021
USD ($)
$ / shares
shares
| |
Expected to vest | |
Number (shares) | shares | 1,138,149 |
Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 40.57 |
Weighted-Average Remaining Exercisable Period (years) | 7 years 4 months 24 days |
Aggregate Intrinsic Value | $ | $ 1,514 |
Exercisable | |
Number (shares) | shares | 1,810,861 |
Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 39.38 |
Weighted-Average Remaining Exercisable Period (years) | 4 years 9 months 18 days |
Aggregate Intrinsic Value | $ | $ 0 |
Stock-Based Compensation (Other Information) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Share-based Payment Arrangement [Abstract] | |||
Total fair value of options vested | $ 3,608 | $ 11,470 | $ 7,204 |
Total intrinsic value of options exercised | 1,527 | 5,981 | 8,917 |
Cash received from exercise of stock options | 5,519 | 27,926 | 17,021 |
Tax benefit realized from exercise of stock options | $ 376 | $ 1,353 | $ 1,928 |
Weighted-average grant-date fair value of option granted (in dollars per share) | $ 0 | $ 9.84 | $ 9.72 |
Stock-Based Compensation (Deferred Compensation) (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Share-based Payment Arrangement [Abstract] | ||
Current maturities of other long-term obligations | $ 1,490 | $ 850 |
Other long-term liabilities | 8,649 | 9,740 |
Total deferred compensation | 10,139 | 10,590 |
Total fair-market value of deferred compensation | $ 7,207 | $ 7,503 |
Retirement Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
|
Retirement Benefits [Abstract] | |||
Stock contribution | $ 6,870 | $ 7,237 | $ 7,174 |
Cash contribution | 19,941 | 21,171 | 21,413 |
Total annual contribution | $ 26,811 | $ 28,408 | $ 28,587 |
Post-Retirement Health Care (Estimated Future Benefit Payments) (Details) - Postretirement Health Coverage $ in Thousands |
Jan. 02, 2021
USD ($)
|
---|---|
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2021 | $ 1,039 |
Fiscal 2022 | 1,031 |
Fiscal 2023 | 1,034 |
Fiscal 2024 | 1,034 |
Fiscal 2025 | 1,060 |
Fiscal 2026 – 2030 | 6,128 |
Expected Contributions During Fiscal 2019 | $ 1,039 |
Post-Retirement Health Care Post-Retirement Health Care (Valuation Assumptions) (Details) |
Jan. 02, 2021 |
Dec. 28, 2019 |
Dec. 29, 2018 |
---|---|---|---|
Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.40% | 3.20% | 4.20% |
Leases - Narrative (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018
USD ($)
|
Jan. 02, 2021
lease_extension
|
Dec. 29, 2018
USD ($)
|
|
Sale Leaseback Transaction [Line Items] | |||
Rent expense | $ 31.0 | ||
Manufacturing Facility | |||
Sale Leaseback Transaction [Line Items] | |||
Term of lease | 10 years | ||
Net proceeds | $ 16.9 | ||
Deferred gain | $ 5.1 | ||
Real Estate | |||
Sale Leaseback Transaction [Line Items] | |||
Number of options to extend | lease_extension | 1 | ||
Minimum | Real Estate | |||
Sale Leaseback Transaction [Line Items] | |||
Renewal term | 1 year | ||
Maximum | Real Estate | |||
Sale Leaseback Transaction [Line Items] | |||
Renewal term | 10 years | ||
Leased Assets | Real Estate | |||
Sale Leaseback Transaction [Line Items] | |||
Concentration risk, percentage | 84.00% | ||
Leased Assets | Equipment | |||
Sale Leaseback Transaction [Line Items] | |||
Concentration risk, percentage | 16.00% |
Leases - Leases included in the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Assets | ||
Right-of-use operating leases | $ 70,219 | $ 72,883 |
Right-of-use finance leases | 6,095 | 2,129 |
Total Right-of-use operating / finance leases | 76,314 | 75,012 |
Current | ||
Current lease obligations - operating | 19,970 | 22,219 |
Current lease obligations - finance | 1,589 | 563 |
Total Current lease obligations - operating / finance | 21,559 | 22,782 |
Non-current | ||
Long-term lease obligations - operating | 53,249 | 58,233 |
Long-term lease obligations - finance | 4,516 | 1,581 |
Total Long-term lease obligations - operating / finance | 57,765 | 59,814 |
Present value of operating lease and finance lease liabilities | $ 79,324 | $ 82,596 |
Leases - Lease Costs included in the Condensed Consolidated Statements on Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Finance lease costs | ||
Sublease Income | $ 130 | $ 181 |
Total lease costs | 29,990 | 28,091 |
Cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Fixed | 1,819 | 1,803 |
Short-term / variable | 434 | 700 |
Finance lease costs | ||
Amortization | 738 | 480 |
Selling and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Fixed | 25,357 | 24,149 |
Short-term / variable | $ 1,772 | $ 1,140 |
Leases - Maturities of Lease Liabilities (Details) - USD ($) |
Jan. 02, 2021 |
Dec. 28, 2019 |
---|---|---|
Operating Leases | ||
2021 | $ 22,292,000 | |
2022 | 16,513,000 | |
2023 | 12,986,000 | |
2024 | 8,912,000 | |
2025 | 7,485,000 | |
Thereafter | 12,403,000 | |
Total lease payments | 80,591,000 | |
Less: Interest | 7,372,000 | |
Present value of lease liabilities | 73,219,000 | |
Finance Leases | ||
2021 | 1,696,000 | |
2022 | 1,482,000 | |
2023 | 1,387,000 | |
2024 | 1,047,000 | |
2025 | 737,000 | |
Thereafter | 0 | |
Total lease payments | 6,349,000 | |
Less: Interest | 244,000 | |
Present value of lease liabilities | 6,105,000 | |
Total | ||
2021 | 23,988,000 | |
2022 | 17,995,000 | |
2023 | 14,373,000 | |
2024 | 9,959,000 | |
2025 | 8,222,000 | |
Thereafter | 12,403,000 | |
Total lease payments | 86,940,000 | |
Less: Interest | 7,616,000 | |
Present value of operating lease and finance lease liabilities | 79,324,000 | $ 82,596,000 |
Payments for leases with option to extend | 0 | |
Finance lease payments related to options to extend lease terms | 0 | |
Minimum lease payments for leases signed but not yet commenced | $ 4,600,000 |
Leases - Weighted-Average Remaining Lease Terms and Discount Rates for Operating and Finance Leases (Details) |
Jan. 02, 2021 |
---|---|
Weighted-Average Discount Rate (percent) | |
Operating leases | 3.50% |
Finance leases | 1.90% |
Weighted-Average Remaining Lease Term (years) | |
Operating leases | 4 years 10 months 24 days |
Finance leases | 4 years 3 months 18 days |
Leases - Cash Paid for Amounts Included in the Measurements of Lease Liabilities and Leased Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Jan. 02, 2021 |
Dec. 28, 2019 |
|
Cash paid for amounts included in the measurements of lease liabilities | ||
Operating cash flows from operating / finance leases | $ 31,461 | $ 26,446 |
Financing cash flows from finance leases | 674 | 419 |
Leased assets obtained in exchange for new operating / finance lease liabilities | $ 27,260 | $ 25,268 |
Guarantees, Commitments and Contingencies (Details) $ in Millions |
Jan. 02, 2021
USD ($)
|
---|---|
Financing instruments, insurance policies and payment obligations | |
Guarantor Obligations [Line Items] | |
Letters of credit | $ 24 |
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