DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended |
Jun. 28, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'HNI CORP |
Entity Central Index Key | '0000048287 |
Document Type | '10-Q |
Document Period End Date | 28-Jun-14 |
Amendment Flag | 'false |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q2 |
Current Fiscal Year End Date | '--01-03 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 45,951,350 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $29,278 | $65,030 |
Short-term Investments | 2,852 | 7,251 |
Receivables | 238,076 | 228,715 |
Inventories | 128,377 | 89,516 |
Deferred income taxes | 14,855 | 16,051 |
Prepaid expenses and other current assets | 26,037 | 26,665 |
Total Current Assets | 439,475 | 433,228 |
PROPERTY, PLANT, AND EQUIPMENT | ' | ' |
Land and land improvements | 27,587 | 27,465 |
Buildings | 287,743 | 284,484 |
Machinery and equipment | 477,620 | 470,748 |
Construction in progress | 27,459 | 24,209 |
Property plant and equipment, at cost | 820,409 | 806,906 |
Less accumulated depreciation | 541,970 | 539,505 |
Net Property, Plant, and Equipment | 278,439 | 267,401 |
GOODWILL | 278,125 | 286,655 |
OTHER ASSETS | 164,233 | 147,421 |
Total Assets | 1,160,272 | 1,134,705 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 396,203 | 407,799 |
Note payable and current maturities of long-term debt and capital lease obligations | 35,702 | 484 |
Current maturities of other long-term obligations | 3,089 | 3,301 |
Total Current Liabilities | 434,994 | 411,584 |
LONG-TERM DEBT | 150,064 | 150,091 |
CAPITAL LEASE OBLIGATIONS | 46 | 106 |
OTHER LONG-TERM LIABILITIES | 68,804 | 67,543 |
DEFERRED INCOME TAXES | 69,366 | 68,964 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Capital Stock: | ' | ' |
Preferred, $1 par value, authorized 2,000,000 shares, no shares outstanding | 0 | 0 |
Common, $1 par value, authorized 200,000,000 shares, outstanding - June 28, 2014 - 44,951,350 shares; December 28, 2013 – 44,981,865 shares | 44,951 | 44,982 |
Additional paid-in capital | 18,302 | 16,729 |
Retained earnings | 372,412 | 373,652 |
Accumulated other comprehensive income (loss) | 1,363 | 965 |
Total HNI Corporation shareholders' equity | 437,028 | 436,328 |
Noncontrolling interest | -30 | 89 |
Total Equity | 436,998 | 436,417 |
Total Liabilities and Equity | $1,160,272 | $1,134,705 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, Par Value (per share) | $1 | $1 |
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value (per share) | $1 | $1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Outstanding | 44,951,350 | 44,981,865 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $509,143 | $510,698 | $961,344 | $952,995 |
Cost of sales | 328,010 | 336,040 | 625,039 | 630,555 |
Gross profit | 181,133 | 174,658 | 336,305 | 322,440 |
Selling and administrative expenses | 155,288 | 152,078 | 300,498 | 296,634 |
(Gain) loss on sale of assets | -1,346 | 2,460 | -9,746 | 2,460 |
Restructuring and impairment | 10,282 | -35 | 10,254 | 121 |
Operating income | 16,909 | 20,155 | 35,299 | 23,225 |
Interest income | 146 | 158 | 216 | 310 |
Interest expense | 2,187 | 2,725 | 4,389 | 5,393 |
Income before income taxes | 14,868 | 17,588 | 31,126 | 18,142 |
Income taxes | 5,203 | 6,189 | 10,445 | 5,564 |
Net income | 9,665 | 11,399 | 20,681 | 12,578 |
Less: Net (loss) attributable to the noncontrolling interest | -40 | -22 | -120 | -251 |
Net income attributable to HNI Corporation | 9,705 | 11,421 | 20,801 | 12,829 |
Net income attributable to HNI Corporation per common share - basic | $0.22 | $0.25 | $0.46 | $0.28 |
Average number of common shares outstanding - basic | 45,019,783 | 45,412,668 | 45,029,148 | 45,283,716 |
Net income attributable to HNI Corporation per common share - diluted | $0.21 | $0.25 | $0.45 | $0.28 |
Average number of common shares outstanding - diluted | 45,867,927 | 46,109,563 | 45,843,118 | 45,891,246 |
Cash dividends per common share | $0.25 | $0.24 | $0.49 | $0.48 |
Other comprehensive income, net of tax | -49 | -2,086 | 398 | -2,057 |
Comprehensive income | 9,616 | 9,313 | 21,079 | 10,521 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | -40 | -22 | -120 | -251 |
Comprehensive income attributable to HNI Corporation | $9,656 | $9,335 | $21,199 | $10,772 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Other comprehensive income, tax | $30 | $103 | ($18) | $41 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Net Cash Flows From (To) Operating Activities: | ' | ' |
Net income | $20,681 | $12,578 |
Noncash items included in net income: | ' | ' |
Depreciation and amortization | 26,952 | 22,838 |
Other postretirement and post employment benefits | 620 | 713 |
Stock-based compensation | 4,752 | 3,864 |
Excess tax benefits from stock compensation | -144 | -2,114 |
Deferred income taxes | 1,550 | 5,673 |
(Gain) loss on sale, retirement and impairment of long-lived assets and intangibles, net | -581 | 120 |
Loss on sale of business | 0 | 2,177 |
Stock issued to retirement plan | 6,005 | 5,352 |
Other – net | 1,255 | 2,953 |
Net increase (decrease) in operating assets and liabiities | -68,437 | -76,816 |
Increase (decrease) in other liabilities | 355 | 4,433 |
Net cash flows from (to) operating activities | -6,992 | -18,229 |
Net Cash Flows From (To) Investing Activities: | ' | ' |
Capital expenditures | -34,710 | -26,132 |
Proceeds from sale of property, plant, and equipment | 13,588 | 196 |
Capitalized software | -16,412 | -7,487 |
Purchase of investments | -798 | -1,106 |
Sales or maturities of investments | 4,770 | 2,250 |
Other - net | ' | -578 |
Net cash flows from (to) investing activities | -33,562 | -32,857 |
Net Cash Flows From (To) Financing Activities: | ' | ' |
Proceeds from sales of HNI Corporation common stock | 3,143 | 6,440 |
Withholdings related to net share settlements of equity based awards | -79 | -1,599 |
Purchase of HNI Corporation common stock | -13,051 | -7,711 |
Proceeds from note and long-term debt | 100,473 | 129,353 |
Payments of note and long-term debt and other financing | -63,787 | -63,773 |
Excess tax benefits from stock compensation | 144 | 2,114 |
Dividends paid | -22,041 | -21,769 |
Net cash flows from (to) financing activities | 4,802 | 43,055 |
Net increase (decrease) in cash and cash equivalents | -35,752 | -8,031 |
Cash and cash equivalents at beginning of period | 65,030 | 41,782 |
Cash and cash equivalents at end of period | $29,278 | $33,751 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The December 28, 2013 consolidated balance sheet included in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the six-month period ended June 28, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 3, 2015. For further information, refer to the consolidated financial statements and accompanying notes included in HNI Corporation's (the "Corporation") Annual Report on Form 10-K for the fiscal year ended December 28, 2013. | |
During 2014 the Corporation changed its estimate regarding the quarterly accrual of annual incentive plan expense to more accurately match expense with earnings. The impact to the three-month and six-month period ended June 28, 2014 was to reduce expense by $0.8 million and $2.4 million or increase net income attributable to HNI Corporation $0.01 and $0.04 per diluted share, respectively. There will be no impact from the accrual change on the Corporation's full year financial statements. | |
The Corporation has certain non-cash operating and investing activities related to accrued purchases of property and equipment and capitalized software. A revision was made to the Condensed Consolidated Statement of Cash Flow for the six months ended June 29, 2013 which decreased operating cash flows related to the change in accounts payable and accrued expenses $5.7 million and increased investing cash flows $4.4 million and $1.3 million related to capital expenditures of property and equipment and capitalized software, respectively. The revisions in the Condensed Consolidated Statement of Cash Flows noted above represent errors that are not deemed material, individually or in the aggregate, to the prior period consolidated financial statements. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 28, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employee requisite service period. For the three and six months ended June 28, 2014, and June 29, 2013, the Corporation recognized $2.1 million and $4.8 million and $1.6 million and $3.9 million, respectively, of stock-based compensation expense for the cost of stock options and time-based restricted stock units issued under the HNI Corporation 2007 Stock-Based Compensation Plan and shares issued under the HNI Corporation 2002 Members' Stock Purchase Plan. | |
At June 28, 2014, there was $9.6 million of unrecognized compensation cost related to nonvested stock-based compensation awards, which the Corporation expects to recognize over a weighted-average remaining service period of 1.1 years. |
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
The Corporation values its inventory at the lower of cost or market with approximately 73% valued by the last-in, first-out ("LIFO") costing method. | |||||||||
June 28, 2014 | December 28, 2013 | ||||||||
(In thousands) | |||||||||
Finished products | $ | 81,549 | $ | 51,991 | |||||
Materials and work in process | 74,416 | 65,247 | |||||||
LIFO allowance | (27,588 | ) | (27,722 | ) | |||||
$ | 128,377 | $ | 89,516 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income and Shareholders' Equity | 6 Months Ended | ||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income and Shareholders' Equity | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | |||||||||||||||||||||
The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended June 28, 2014: | |||||||||||||||||||||
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Pension Postretirement Liability | Derivative Financial Instruments | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at December 28, 2013 | $ | 2,913 | $ | 81 | $ | (2,140 | ) | $ | 111 | $ | 965 | ||||||||||
Other comprehensive income before reclassifications | 431 | (12 | ) | — | 34 | 453 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | (55 | ) | (55 | ) | ||||||||||||||
Balance at June 28, 2014 | $ | 3,344 | $ | 69 | $ | (2,140 | ) | $ | 90 | $ | 1,363 | ||||||||||
All amounts are net-of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||
The following table details the reclassifications from accumulated other comprehensive income (loss) for the three months and six months ended June 28, 2014 and June 29, 2013 (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Affected Line Item in the Statement Where Net Income Is Presented | 28-Jun-14 | 29-Jun-13 | June 28, 2014 | June 29, 2013 | ||||||||||||||||
Pension postretirement liability | |||||||||||||||||||||
Transition obligation | Selling and administrative expenses | $ | — | $ | — | $ | — | $ | (116 | ) | |||||||||||
Tax (expense) or benefit | — | — | — | 42 | |||||||||||||||||
Net of tax | $ | — | $ | — | $ | — | $ | (74 | ) | ||||||||||||
Derivative financial instruments | |||||||||||||||||||||
Diesel hedge | Selling and administrative expenses | $ | 32 | $ | 95 | $ | 87 | $ | 212 | ||||||||||||
Tax (expense) or benefit | (12 | ) | (36 | ) | (32 | ) | (78 | ) | |||||||||||||
Net of tax | $ | 20 | $ | 59 | $ | 55 | $ | 134 | |||||||||||||
Total reclassifications for the period | Net of tax | $ | 20 | $ | 59 | $ | 55 | $ | 60 | ||||||||||||
Amounts in parentheses indicate reductions to profit. | |||||||||||||||||||||
During the six months ended June 28, 2014, the Corporation repurchased 364,000 shares of its common stock at a cost of approximately $13.1 million. As of June 28, 2014, $74.2 million of the Corporation's Board of Directors' current repurchase authorization remained unspent. | |||||||||||||||||||||
During the six months ended June 28, 2014, the Corporation paid dividends to shareholders of $0.49 per share. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
(In thousands, except per share data) | June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |||||||||||||
Numerators: | |||||||||||||||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ | 9,705 | $ | 11,421 | $ | 20,801 | $ | 12,829 | |||||||||
Denominators: | |||||||||||||||||
Denominator for basic EPS weighted-average common shares outstanding | 45,020 | 45,413 | 45,029 | 45,284 | |||||||||||||
Potentially dilutive shares from stock-based compensation plans | 848 | 697 | 813 | 608 | |||||||||||||
Denominator for diluted EPS | 45,868 | 46,110 | 45,843 | 45,891 | |||||||||||||
Earnings per share – basic | $ | 0.22 | $ | 0.25 | $ | 0.46 | $ | 0.28 | |||||||||
Earnings per share – diluted | $ | 0.21 | $ | 0.25 | $ | 0.45 | $ | 0.28 | |||||||||
The weighted average common stock equivalents presented above do not include the effect of 945,338 and 999,423 and 880,657 and 1,303,625 common stock equivalents for the three and six months ended June 28, 2014 and June 29, 2013, respectively, because their inclusion would be anti-dilutive. |
Restructuring_Reserve_And_Plan
Restructuring Reserve And Plant Closures | 6 Months Ended | ||||||||||||
Jun. 28, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring Reserve and Plant Closures | ' | ||||||||||||
Restructuring Reserve and Plant Closures | |||||||||||||
As a result of the Corporation's ongoing business simplification and cost reduction strategies, the Corporation made the decision to close an office furniture manufacturing facility located in Florence, Alabama and consolidate production into existing office furniture manufacturing facilities. The Corporation also notified its members and the union representing the bargaining unit at its office furniture manufacturing facility located in Chicago, Illinois of its tentative decision, pending negotiations and consultation with the union, to close the facility and consolidate production into an existing facility. In connection with these decisions the Corporation recorded $4.8 million of pre-tax charges which included $2.6 million of accelerated depreciation on machinery and equipment and $0.8 million of transition costs recorded in cost of sales and $1.4 million of severance and facility exit costs which were recorded as restructuring charges during the quarter. The closure and consolidation of these facilities is expected to be substantially completed by the first quarter of 2015. The Corporation anticipates additional restructuring and transition costs of approximately $8.8 million related to these closures during the remainder of 2014. See Note G. Goodwill and Other Intangible Assets for further impact of these decisions. | |||||||||||||
The following is a summary of changes in restructuring accruals during the six months ended June 28, 2014. | |||||||||||||
Severance | Facility Exit Costs & Other | Total | |||||||||||
(In thousands) | |||||||||||||
Balance as of December 28, 2013 | $ | 49 | $ | 6 | $ | 55 | |||||||
Restructuring charges | 1,362 | 8 | 1,370 | ||||||||||
Cash payments | (33 | ) | (14 | ) | (47 | ) | |||||||
Balance as of June 28, 2014 | $ | 1,378 | $ | — | $ | 1,378 | |||||||
During the first quarter 2014 the Corporation completed the sale of a vacated office furniture manufacturing facility from a prior plant closure. The net sales price was $12.0 million resulting in a gain of $5.7 million, net of $2.7 million income tax expense for the quarter ended March 29, 2014. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | ||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||
The table below summarizes amortizable definite-lived intangible assets as of June 28, 2014 and December 28, 2013, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: | |||||||||||||||||||||
(In thousands) | June 28, 2014 | December 28, 2013 | |||||||||||||||||||
Patents | $ | 18,905 | $ | 18,905 | |||||||||||||||||
Less: accumulated amortization | 18,704 | 18,685 | |||||||||||||||||||
Net patents | 201 | 220 | |||||||||||||||||||
Software | 74,428 | 52,778 | |||||||||||||||||||
Less: accumulated amortization | 16,079 | 14,380 | |||||||||||||||||||
Net software | 58,349 | 38,398 | |||||||||||||||||||
Customer lists and other | 110,851 | 110,609 | |||||||||||||||||||
Less: accumulated amortization | 58,010 | 54,592 | |||||||||||||||||||
Net customer lists and other | 52,841 | 56,017 | |||||||||||||||||||
Net intangible assets | $ | 111,391 | $ | 94,635 | |||||||||||||||||
Aggregate amortization expense for the six months ended June 28, 2014 and June 29, 2013 was $5.1 million and $5.1 million, respectively. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows: | |||||||||||||||||||||
(In millions) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Amortization Expense | $ | 10.1 | $ | 13.8 | $ | 13.1 | $ | 12.1 | $ | 11.9 | |||||||||||
As events such as potential acquisitions, dispositions or impairments occur in the future, these amounts may change. | |||||||||||||||||||||
The Corporation also owns trademarks and trade names with a net carrying amount of $41.0 million. The trademarks and trade names are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. | |||||||||||||||||||||
The changes in the carrying amount of goodwill since December 28, 2013 are as follows by reporting segment: | |||||||||||||||||||||
Office | Hearth | Total | |||||||||||||||||||
(In thousands) | Furniture | Products | |||||||||||||||||||
Balance as of December 28, 2013 | |||||||||||||||||||||
Goodwill | $ | 149,969 | $ | 166,188 | $ | 316,157 | |||||||||||||||
Accumulated impairment losses | (29,359 | ) | (143 | ) | (29,502 | ) | |||||||||||||||
120,610 | 166,045 | 286,655 | |||||||||||||||||||
Goodwill acquired | — | — | — | ||||||||||||||||||
Impairment Losses | (8,884 | ) | — | (8,884 | ) | ||||||||||||||||
Foreign currency translation adjustments | 354 | — | 354 | ||||||||||||||||||
Balance as of June 28, 2014 | |||||||||||||||||||||
Goodwill | 150,323 | 166,188 | 316,511 | ||||||||||||||||||
Accumulated impairment losses | (38,243 | ) | (143 | ) | (38,386 | ) | |||||||||||||||
$ | 112,080 | $ | 166,045 | $ | 278,125 | ||||||||||||||||
The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method. This method employs market participant based assumptions. | |||||||||||||||||||||
The tentative decision, pending negotiation and consultation with the union, was made during the quarter ended June 28, 2014 to close a facility and exit a product line at one of the recently acquired reporting units within the office furniture segment. These decisions, along with slower order growth than projected in the second quarter, were considered a triggering event and, accordingly, the Corporation tested long-lived assets and goodwill at that reporting unit for impairment. The Corporation estimated the fair value of the reporting unit using a discounted cash flow approach along with a market multiple approach. The estimated fair value was below the carrying value indicating a potential impairment existed. The Corporation performed the second step of the test which requires a fair value assessment of all assets and liabilities of the reporting unit to calculate an implied goodwill amount. This resulted in an $8.9 million goodwill impairment charge during the quarter. |
Product_Warranties
Product Warranties | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Product Warranties | ' | ||||||||
Product Warranties | |||||||||
The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs. | |||||||||
A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. Activity associated with warranty obligations was as follows during the periods noted: | |||||||||
Six Months Ended | |||||||||
(In thousands) | June 28, 2014 | June 29, 2013 | |||||||
Balance at beginning of period | $ | 13,840 | $ | 13,055 | |||||
Accruals for warranties issued during period | 10,465 | 9,564 | |||||||
Adjustments related to pre-existing warranties | (14 | ) | 347 | ||||||
Settlements made during the period | (9,248 | ) | (9,823 | ) | |||||
Balance at end of period | $ | 15,043 | $ | 13,143 | |||||
During the fourth quarter of 2013, the Corporation corrected a classification error by reclassifying a portion of the reserve for product warranties which was previously all classified as a current liability, including the related deferred tax impacts, to long-term. The portion of the reserve for estimated settlements expected to be paid in the next twelve months was $7.7 million and $6.4 million as of June 28, 2014 and June 29, 2013, respectively, and are included in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets. The portion of the reserve for settlements expected to be paid beyond one year was $7.4 million and $6.8 million, respectively, and are included in "Other Long-Term Liabilities" in the Condensed Consolidated Balance Sheets. The revisions in the Condensed Consolidated Balance Sheets noted above represent errors that are not deemed material, individually or in the aggregate, to the prior period consolidated financial statements. |
Postretirement_Health_Care
Postretirement Health Care | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Postretirement Health Care | ' | ||||||||||||||||
Postretirement Health Care | |||||||||||||||||
The following table sets forth the components of net periodic benefit cost included in the Corporation's Condensed Consolidated Statements of Comprehensive Income for: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
(In thousands) | June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |||||||||||||
Service cost | $ | 126 | $ | 131 | $ | 252 | $ | 262 | |||||||||
Interest cost | 184 | 167 | 368 | 334 | |||||||||||||
Amortization of transition obligation | — | — | — | 116 | |||||||||||||
Amortization of (gain)/loss | — | — | — | — | |||||||||||||
Net periodic benefit cost | $ | 310 | $ | 298 | $ | 620 | $ | 712 | |||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The provision for income taxes for the three months ended June 28, 2014 reflects an effective tax rate of 35.0 percent compared to 35.2 percent for the same period last year. The 2014 estimated annual effective tax rate is expected to be 35.0 percent. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
The Corporation uses derivative financial instruments to reduce its exposure to adverse fluctuations in diesel fuel prices. On the date a derivative is entered into, the Corporation designates the derivative as (i) a fair value hedge, (ii) a cash flow hedge, (iii) a hedge of a net investment in a foreign operation or (iv) a risk management instrument not designated for hedge accounting. The Corporation recognizes all derivatives on its Condensed Consolidated Balance Sheets at fair value. | |||||||||||||||||
Diesel Fuel Risk | |||||||||||||||||
The Corporation uses independent freight carriers to deliver its products. These carriers charge the Corporation a basic rate per mile that is subject to a mileage surcharge for diesel fuel price increases. The Corporation enters into variable to fixed rate commodity swap agreements with two financial counterparties to manage fluctuations in fuel costs. The Corporation hedges approximately 50% of its diesel fuel surcharge exposure for the next twelve months. The Corporation uses the hedge agreements to mitigate the volatility of diesel fuel prices and related fuel surcharges, and not to speculate on the future price of diesel fuel. The hedge agreements are designed to add stability to the Corporation's costs, enabling the Corporation to make pricing decisions and lessen the economic impact of abrupt changes in diesel fuel prices over the term of the contract. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to twelve months. The contracts have been designated as cash flow hedges of future diesel purchases, and as such, the net amount paid or received upon monthly settlements is recorded as an adjustment to freight expense, while the effective change in fair value is recorded as a component of accumulated other comprehensive income in the equity section of the Corporation's Condensed Consolidated Balance Sheets. | |||||||||||||||||
As of June 28, 2014, $0.1 million of deferred net gains, net of tax, included in equity ("Accumulated other comprehensive income" in the Corporation's Condensed Consolidated Balance Sheets) related to the diesel hedge agreements are expected to be reclassified to current earnings ("Selling and administrative expenses" in the Corporation's Condensed Consolidated Statements of Comprehensive Income) over the next twelve months. | |||||||||||||||||
The location and fair value of derivative instruments reported in the Corporation's Condensed Consolidated Balance Sheets are as follows (in thousands): | |||||||||||||||||
Asset (Liability) Fair Value | |||||||||||||||||
Balance Sheet Location | June 28, 2014 | December 28, 2013 | |||||||||||||||
Diesel fuel swap | Accounts payable and accrued expenses | $ | (1 | ) | $ | — | |||||||||||
Diesel fuel swap | Prepaid expenses and other current assets | 146 | 176 | ||||||||||||||
$ | 145 | $ | 176 | ||||||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 28, 2014 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 153 | Selling and administrative expenses | $ | 32 | Selling and administrative expenses | $ | (3 | ) | ||||||||
Total | $ | 153 | $ | 32 | $ | (3 | ) | ||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 28, 2014 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 55 | Selling and administrative expenses | $ | 87 | Selling and administrative expenses | $ | (4 | ) | ||||||||
Total | $ | 55 | $ | 87 | $ | (4 | ) | ||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 29, 2013 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 412 | Selling and administrative expenses | $ | 95 | Selling and administrative expenses | $ | (5 | ) | ||||||||
Total | $ | 412 | $ | 95 | $ | (5 | ) | ||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 29, 2013 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 390 | Selling and administrative expenses | $ | 212 | Selling and administrative expenses | $ | (4 | ) | ||||||||
Total | $ | 390 | $ | 212 | $ | (4 | ) | ||||||||||
The Corporation entered into master netting agreements with the two financial counterparties where they entered into commodity swap agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event is allowed. The amounts under the master netting agreement are immaterial and no further disclosure is deemed necessary. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
For recognition purposes, on a recurring basis the Corporation is required to measure at fair value its marketable securities and derivative instruments. The marketable securities are comprised of government securities, corporate bonds and money market funds. When available the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges/indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. | |||||||||||||||||
Assets measured at fair value as of June 28, 2014 were as follows: | |||||||||||||||||
Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||
Fair value as of measurement date | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | |||||||||||||||||
Government securities | $ | 10,907 | $ | — | $ | 10,907 | $ | — | |||||||||
Corporate bonds | $ | 1,208 | $ | — | $ | 1,208 | $ | — | |||||||||
Derivative financial instruments | $ | 145 | $ | — | $ | 145 | $ | — | |||||||||
Assets measured at fair value as of December 28, 2013 were as follows: | |||||||||||||||||
Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||
Fair value as of measurement date | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | |||||||||||||||||
Government securities | $ | 11,254 | $ | — | $ | 11,254 | $ | — | |||||||||
Corporate bonds | $ | 4,859 | $ | — | $ | 4,859 | $ | — | |||||||||
Derivative financial instruments | $ | 176 | $ | — | $ | 176 | $ | — | |||||||||
In addition to the methods and assumptions the Corporation uses to record the fair value of financial instruments as discussed in the section above, it uses the following methods and assumptions to estimate the fair value of its financial instruments. | |||||||||||||||||
Cash and cash equivalents - Level 1 | |||||||||||||||||
The carrying amount approximated fair value and includes money market funds. | |||||||||||||||||
Long-term debt (including current portion) - Level 2 | |||||||||||||||||
The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at June 28, 2014 and December 28, 2013, the end of the Corporation's 2013 fiscal year, approximated the fair value. The fair value of the Corporation's outstanding fixed-rate, long-term debt obligations is estimated based on discounted cash flow method to be $157 million at June 28, 2014 and $159 million at December 28, 2013, compared to the carrying value of $150 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The Corporation utilizes letters of credit in the amount of $11 million to back certain insurance policies and payment obligations. The letters of credit reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. | |
The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, and other claims. It is the Corporation's opinion that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation's financial condition, cash flows or on the Corporation's quarterly or annual operating results when resolved in a future period. |
New_Accounting_Standards
New Accounting Standards | 6 Months Ended |
Jun. 28, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
New Accounting Standards | ' |
New Accounting Standards | |
In January 2013, the FASB issued accounting guidance clarifying the scope of disclosures about offsetting assets and liabilities. | |
This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those | |
annual periods. The Corporation adopted the guidance effective December 29, 2013, the beginning of the Corporation's 2014 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. | |
In July 2013, the FASB issued accounting guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, or similar tax loss, or a tax carryforward exists. The Corporation adopted the guidance effective December 29, 2013, the beginning of the Corporation's 2014 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. | |
In April 2014, the FASB issued accounting guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance will be effective for fiscal years beginning on or after December 15, 2014 and interim periods within those annual periods with early adoption allowed. The Corporation does not expect the adoption to have a material impact on its financial statements. | |
In May 2014, the FASB issued accounting guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Corporation is currently evaluating the impact of adopting this standard on its financial statements. |
Business_Segment_Information
Business Segment Information | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Business Segment Information | ' | |||||||||||||||
Business Segment Information | ||||||||||||||||
Management views the Corporation as operating in two business segments: office furniture and hearth products with the former being the principal business segment. | ||||||||||||||||
The office furniture segment manufactures and markets a broad line of metal and wood office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, classroom solutions, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of manufactured gas, electric, wood and biomass burning fireplaces, inserts and stoves, facings and accessories, principally for the home. | ||||||||||||||||
For purposes of segment reporting, intercompany sales transfers between segments are not material and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated corporate expenses include the net cost of the Corporation's corporate operations, interest income and interest expense. Management views interest income and expense as corporate financing costs rather than a business segment cost. In addition, management applies one effective tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. | ||||||||||||||||
The Corporation's primary market and capital investments are concentrated in the United States. | ||||||||||||||||
Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three and six month periods ended June 28, 2014, and June 29, 2013, is as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands) | June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | ||||||||||||
Net Sales: | ||||||||||||||||
Office Furniture | $ | 423,423 | $ | 436,169 | $ | 781,792 | $ | 802,001 | ||||||||
Hearth Products | 85,720 | 74,529 | 179,552 | 150,994 | ||||||||||||
$ | 509,143 | $ | 510,698 | $ | 961,344 | $ | 952,995 | |||||||||
Operating Profit: | ||||||||||||||||
Office furniture | ||||||||||||||||
Operations before restructuring charges | $ | 28,524 | $ | 22,092 | $ | 44,989 | $ | 30,948 | ||||||||
Restructuring and impairment charges | (10,282 | ) | 35 | (10,254 | ) | (121 | ) | |||||||||
Office furniture – net | 18,242 | 22,127 | 34,735 | 30,827 | ||||||||||||
Hearth products | 8,481 | 5,699 | 20,189 | 9,290 | ||||||||||||
Total operating profit | 26,723 | 27,826 | 54,924 | 40,117 | ||||||||||||
Unallocated corporate expense | (11,855 | ) | (10,238 | ) | (23,798 | ) | (21,975 | ) | ||||||||
Income before income taxes | $ | 14,868 | $ | 17,588 | $ | 31,126 | $ | 18,142 | ||||||||
Depreciation & Amortization Expense: | ||||||||||||||||
Office furniture | $ | 12,472 | $ | 9,304 | $ | 21,971 | $ | 18,127 | ||||||||
Hearth products | 1,158 | 1,372 | 2,334 | 2,765 | ||||||||||||
General corporate | 1,298 | 1,073 | 2,647 | 1,946 | ||||||||||||
$ | 14,928 | $ | 11,749 | $ | 26,952 | $ | 22,838 | |||||||||
Capital Expenditures (including capitalized software): | ||||||||||||||||
Office furniture | $ | 16,348 | $ | 13,017 | $ | 29,836 | $ | 22,949 | ||||||||
Hearth products | 1,187 | 1,051 | 2,698 | 1,665 | ||||||||||||
General corporate | 10,894 | 4,758 | 18,587 | 9,005 | ||||||||||||
$ | 28,429 | $ | 18,826 | $ | 51,121 | $ | 33,619 | |||||||||
As of | As of | |||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Identifiable Assets: | ||||||||||||||||
Office furniture | $ | 756,888 | $ | 722,697 | ||||||||||||
Hearth products | 266,617 | 255,978 | ||||||||||||||
General corporate | 136,767 | 156,030 | ||||||||||||||
$ | 1,160,272 | $ | 1,134,705 | |||||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Share-based Compensation, Option and Incentive Plans | ' |
The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employee requisite service period. | |
Inventory | ' |
The Corporation values its inventory at the lower of cost or market with approximately 73% valued by the last-in, first-out ("LIFO") costing method. | |
Goodwill | ' |
The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method. This method employs market participant based assumptions. | |
The tentative decision, pending negotiation and consultation with the union, was made during the quarter ended June 28, 2014 to close a facility and exit a product line at one of the recently acquired reporting units within the office furniture segment. These decisions, along with slower order growth than projected in the second quarter, were considered a triggering event and, accordingly, the Corporation tested long-lived assets and goodwill at that reporting unit for impairment. The Corporation estimated the fair value of the reporting unit using a discounted cash flow approach along with a market multiple approach. The estimated fair value was below the carrying value indicating a potential impairment existed. The Corporation performed the second step of the test which requires a fair value assessment of all assets and liabilities of the reporting unit to calculate an implied goodwill amount. This resulted in an $8.9 million goodwill impairment charge during the quarter. | |
Product Warranty | ' |
The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs. | |
A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. | |
Derivatives | ' |
The Corporation uses derivative financial instruments to reduce its exposure to adverse fluctuations in diesel fuel prices. On the date a derivative is entered into, the Corporation designates the derivative as (i) a fair value hedge, (ii) a cash flow hedge, (iii) a hedge of a net investment in a foreign operation or (iv) a risk management instrument not designated for hedge accounting. The Corporation recognizes all derivatives on its Condensed Consolidated Balance Sheets at fair value. | |
Fair Value of Financial Instruments | ' |
For recognition purposes, on a recurring basis the Corporation is required to measure at fair value its marketable securities and derivative instruments. The marketable securities are comprised of government securities, corporate bonds and money market funds. When available the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges/indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. | |
New Accounting Standards | ' |
In January 2013, the FASB issued accounting guidance clarifying the scope of disclosures about offsetting assets and liabilities. | |
This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those | |
annual periods. The Corporation adopted the guidance effective December 29, 2013, the beginning of the Corporation's 2014 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. | |
In July 2013, the FASB issued accounting guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, or similar tax loss, or a tax carryforward exists. The Corporation adopted the guidance effective December 29, 2013, the beginning of the Corporation's 2014 fiscal year. The guidance did not have a material impact on the Corporation's financial statements. | |
In April 2014, the FASB issued accounting guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The guidance will be effective for fiscal years beginning on or after December 15, 2014 and interim periods within those annual periods with early adoption allowed. The Corporation does not expect the adoption to have a material impact on its financial statements. | |
In May 2014, the FASB issued accounting guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The Corporation is currently evaluating the impact of adopting this standard on its financial statements. | |
Segment Reporting | ' |
Management views the Corporation as operating in two business segments: office furniture and hearth products with the former being the principal business segment. | |
The office furniture segment manufactures and markets a broad line of metal and wood office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, classroom solutions, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of manufactured gas, electric, wood and biomass burning fireplaces, inserts and stoves, facings and accessories, principally for the home. | |
For purposes of segment reporting, intercompany sales transfers between segments are not material and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated corporate expenses include the net cost of the Corporation's corporate operations, interest income and interest expense. Management views interest income and expense as corporate financing costs rather than a business segment cost. In addition, management applies one effective tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule Of Inventory Current Table | ' | ||||||||
The Corporation values its inventory at the lower of cost or market with approximately 73% valued by the last-in, first-out ("LIFO") costing method. | |||||||||
June 28, 2014 | December 28, 2013 | ||||||||
(In thousands) | |||||||||
Finished products | $ | 81,549 | $ | 51,991 | |||||
Materials and work in process | 74,416 | 65,247 | |||||||
LIFO allowance | (27,588 | ) | (27,722 | ) | |||||
$ | 128,377 | $ | 89,516 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income and Shareholders' Equity (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Components of Accumulated Other Comprehensive Income and Changes in Accumulated Other Comprehensive Income, Net of Tax | ' | ||||||||||||||||||||
The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended June 28, 2014: | |||||||||||||||||||||
Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Pension Postretirement Liability | Derivative Financial Instruments | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Balance at December 28, 2013 | $ | 2,913 | $ | 81 | $ | (2,140 | ) | $ | 111 | $ | 965 | ||||||||||
Other comprehensive income before reclassifications | 431 | (12 | ) | — | 34 | 453 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | (55 | ) | (55 | ) | ||||||||||||||
Balance at June 28, 2014 | $ | 3,344 | $ | 69 | $ | (2,140 | ) | $ | 90 | $ | 1,363 | ||||||||||
All amounts are net-of tax. Amounts in parentheses indicate debits. | |||||||||||||||||||||
Schedule of Reclassification from Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
The following table details the reclassifications from accumulated other comprehensive income (loss) for the three months and six months ended June 28, 2014 and June 29, 2013 (in thousands): | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Affected Line Item in the Statement Where Net Income Is Presented | 28-Jun-14 | 29-Jun-13 | June 28, 2014 | June 29, 2013 | ||||||||||||||||
Pension postretirement liability | |||||||||||||||||||||
Transition obligation | Selling and administrative expenses | $ | — | $ | — | $ | — | $ | (116 | ) | |||||||||||
Tax (expense) or benefit | — | — | — | 42 | |||||||||||||||||
Net of tax | $ | — | $ | — | $ | — | $ | (74 | ) | ||||||||||||
Derivative financial instruments | |||||||||||||||||||||
Diesel hedge | Selling and administrative expenses | $ | 32 | $ | 95 | $ | 87 | $ | 212 | ||||||||||||
Tax (expense) or benefit | (12 | ) | (36 | ) | (32 | ) | (78 | ) | |||||||||||||
Net of tax | $ | 20 | $ | 59 | $ | 55 | $ | 134 | |||||||||||||
Total reclassifications for the period | Net of tax | $ | 20 | $ | 59 | $ | 55 | $ | 60 | ||||||||||||
Amounts in parentheses indicate reductions to profit. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share Basic and Diluted Table | ' | ||||||||||||||||
The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
(In thousands, except per share data) | June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |||||||||||||
Numerators: | |||||||||||||||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ | 9,705 | $ | 11,421 | $ | 20,801 | $ | 12,829 | |||||||||
Denominators: | |||||||||||||||||
Denominator for basic EPS weighted-average common shares outstanding | 45,020 | 45,413 | 45,029 | 45,284 | |||||||||||||
Potentially dilutive shares from stock-based compensation plans | 848 | 697 | 813 | 608 | |||||||||||||
Denominator for diluted EPS | 45,868 | 46,110 | 45,843 | 45,891 | |||||||||||||
Earnings per share – basic | $ | 0.22 | $ | 0.25 | $ | 0.46 | $ | 0.28 | |||||||||
Earnings per share – diluted | $ | 0.21 | $ | 0.25 | $ | 0.45 | $ | 0.28 | |||||||||
Recovered_Sheet1
Restructuring Reserve and Plant Closures (Tables) | 6 Months Ended | ||||||||||||
Jun. 28, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | ||||||||||||
The following is a summary of changes in restructuring accruals during the six months ended June 28, 2014. | |||||||||||||
Severance | Facility Exit Costs & Other | Total | |||||||||||
(In thousands) | |||||||||||||
Balance as of December 28, 2013 | $ | 49 | $ | 6 | $ | 55 | |||||||
Restructuring charges | 1,362 | 8 | 1,370 | ||||||||||
Cash payments | (33 | ) | (14 | ) | (47 | ) | |||||||
Balance as of June 28, 2014 | $ | 1,378 | $ | — | $ | 1,378 | |||||||
During the first quarter 2014 the Corporation completed the sale of a vacated office furniture manufacturing facility from a prior plant closure. The net sales price was $12.0 million resulting in a gain of $5.7 million, net of $2.7 million income tax expense for the quarter ended March 29, 2014. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets(Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | ||||||||||||||||||||
The table below summarizes amortizable definite-lived intangible assets as of June 28, 2014 and December 28, 2013, which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: | |||||||||||||||||||||
(In thousands) | June 28, 2014 | December 28, 2013 | |||||||||||||||||||
Patents | $ | 18,905 | $ | 18,905 | |||||||||||||||||
Less: accumulated amortization | 18,704 | 18,685 | |||||||||||||||||||
Net patents | 201 | 220 | |||||||||||||||||||
Software | 74,428 | 52,778 | |||||||||||||||||||
Less: accumulated amortization | 16,079 | 14,380 | |||||||||||||||||||
Net software | 58,349 | 38,398 | |||||||||||||||||||
Customer lists and other | 110,851 | 110,609 | |||||||||||||||||||
Less: accumulated amortization | 58,010 | 54,592 | |||||||||||||||||||
Net customer lists and other | 52,841 | 56,017 | |||||||||||||||||||
Net intangible assets | $ | 111,391 | $ | 94,635 | |||||||||||||||||
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) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
Amortization Expense | $ | 10.1 | $ | 13.8 | $ | 13.1 | $ | 12.1 | $ | 11.9 | |||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||
The changes in the carrying amount of goodwill since December 28, 2013 are as follows by reporting segment: | |||||||||||||||||||||
Office | Hearth | Total | |||||||||||||||||||
(In thousands) | Furniture | Products | |||||||||||||||||||
Balance as of December 28, 2013 | |||||||||||||||||||||
Goodwill | $ | 149,969 | $ | 166,188 | $ | 316,157 | |||||||||||||||
Accumulated impairment losses | (29,359 | ) | (143 | ) | (29,502 | ) | |||||||||||||||
120,610 | 166,045 | 286,655 | |||||||||||||||||||
Goodwill acquired | — | — | — | ||||||||||||||||||
Impairment Losses | (8,884 | ) | — | (8,884 | ) | ||||||||||||||||
Foreign currency translation adjustments | 354 | — | 354 | ||||||||||||||||||
Balance as of June 28, 2014 | |||||||||||||||||||||
Goodwill | 150,323 | 166,188 | 316,511 | ||||||||||||||||||
Accumulated impairment losses | (38,243 | ) | (143 | ) | (38,386 | ) | |||||||||||||||
$ | 112,080 | $ | 166,045 | $ | 278,125 | ||||||||||||||||
Product_Warranties_Tables
Product Warranties (Tables) | 6 Months Ended | ||||||||
Jun. 28, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability Table | ' | ||||||||
Activity associated with warranty obligations was as follows during the periods noted: | |||||||||
Six Months Ended | |||||||||
(In thousands) | June 28, 2014 | June 29, 2013 | |||||||
Balance at beginning of period | $ | 13,840 | $ | 13,055 | |||||
Accruals for warranties issued during period | 10,465 | 9,564 | |||||||
Adjustments related to pre-existing warranties | (14 | ) | 347 | ||||||
Settlements made during the period | (9,248 | ) | (9,823 | ) | |||||
Balance at end of period | $ | 15,043 | $ | 13,143 | |||||
Postretirement_Health_Care_Tab
Postretirement Health Care (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | ||||||||||||||||
The following table sets forth the components of net periodic benefit cost included in the Corporation's Condensed Consolidated Statements of Comprehensive Income for: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
(In thousands) | June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | |||||||||||||
Service cost | $ | 126 | $ | 131 | $ | 252 | $ | 262 | |||||||||
Interest cost | 184 | 167 | 368 | 334 | |||||||||||||
Amortization of transition obligation | — | — | — | 116 | |||||||||||||
Amortization of (gain)/loss | — | — | — | — | |||||||||||||
Net periodic benefit cost | $ | 310 | $ | 298 | $ | 620 | $ | 712 | |||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||
The location and fair value of derivative instruments reported in the Corporation's Condensed Consolidated Balance Sheets are as follows (in thousands): | |||||||||||||||||
Asset (Liability) Fair Value | |||||||||||||||||
Balance Sheet Location | June 28, 2014 | December 28, 2013 | |||||||||||||||
Diesel fuel swap | Accounts payable and accrued expenses | $ | (1 | ) | $ | — | |||||||||||
Diesel fuel swap | Prepaid expenses and other current assets | 146 | 176 | ||||||||||||||
$ | 145 | $ | 176 | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 28, 2014 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 153 | Selling and administrative expenses | $ | 32 | Selling and administrative expenses | $ | (3 | ) | ||||||||
Total | $ | 153 | $ | 32 | $ | (3 | ) | ||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 28, 2014 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 55 | Selling and administrative expenses | $ | 87 | Selling and administrative expenses | $ | (4 | ) | ||||||||
Total | $ | 55 | $ | 87 | $ | (4 | ) | ||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended June 29, 2013 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 412 | Selling and administrative expenses | $ | 95 | Selling and administrative expenses | $ | (5 | ) | ||||||||
Total | $ | 412 | $ | 95 | $ | (5 | ) | ||||||||||
The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended June 29, 2013 was as follows (in thousands): | |||||||||||||||||
Derivatives in Cash Flow Hedge Relationship | Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ||||||||||||
Diesel fuel swap | $ | 390 | Selling and administrative expenses | $ | 212 | Selling and administrative expenses | $ | (4 | ) | ||||||||
Total | $ | 390 | $ | 212 | $ | (4 | ) | ||||||||||
The Corporation entered into master netting agreements with the two financial counterparties where they entered into commodity swap agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event is allowed. The amounts under the master netting agreement are immaterial and no further disclosure is deemed necessary. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 28, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ||||||||||||||||
Assets measured at fair value as of June 28, 2014 were as follows: | |||||||||||||||||
Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||
Fair value as of measurement date | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | |||||||||||||||||
Government securities | $ | 10,907 | $ | — | $ | 10,907 | $ | — | |||||||||
Corporate bonds | $ | 1,208 | $ | — | $ | 1,208 | $ | — | |||||||||
Derivative financial instruments | $ | 145 | $ | — | $ | 145 | $ | — | |||||||||
Assets measured at fair value as of December 28, 2013 were as follows: | |||||||||||||||||
Quoted prices in active markets for identical assets | Significant other observable inputs | Significant unobservable inputs | |||||||||||||||
Fair value as of measurement date | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | |||||||||||||||||
Government securities | $ | 11,254 | $ | — | $ | 11,254 | $ | — | |||||||||
Corporate bonds | $ | 4,859 | $ | — | $ | 4,859 | $ | — | |||||||||
Derivative financial instruments | $ | 176 | $ | — | $ | 176 | $ | — | |||||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Business Segment Information | ' | |||||||||||||||
Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three and six month periods ended June 28, 2014, and June 29, 2013, is as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands) | June 28, 2014 | June 29, 2013 | June 28, 2014 | June 29, 2013 | ||||||||||||
Net Sales: | ||||||||||||||||
Office Furniture | $ | 423,423 | $ | 436,169 | $ | 781,792 | $ | 802,001 | ||||||||
Hearth Products | 85,720 | 74,529 | 179,552 | 150,994 | ||||||||||||
$ | 509,143 | $ | 510,698 | $ | 961,344 | $ | 952,995 | |||||||||
Operating Profit: | ||||||||||||||||
Office furniture | ||||||||||||||||
Operations before restructuring charges | $ | 28,524 | $ | 22,092 | $ | 44,989 | $ | 30,948 | ||||||||
Restructuring and impairment charges | (10,282 | ) | 35 | (10,254 | ) | (121 | ) | |||||||||
Office furniture – net | 18,242 | 22,127 | 34,735 | 30,827 | ||||||||||||
Hearth products | 8,481 | 5,699 | 20,189 | 9,290 | ||||||||||||
Total operating profit | 26,723 | 27,826 | 54,924 | 40,117 | ||||||||||||
Unallocated corporate expense | (11,855 | ) | (10,238 | ) | (23,798 | ) | (21,975 | ) | ||||||||
Income before income taxes | $ | 14,868 | $ | 17,588 | $ | 31,126 | $ | 18,142 | ||||||||
Depreciation & Amortization Expense: | ||||||||||||||||
Office furniture | $ | 12,472 | $ | 9,304 | $ | 21,971 | $ | 18,127 | ||||||||
Hearth products | 1,158 | 1,372 | 2,334 | 2,765 | ||||||||||||
General corporate | 1,298 | 1,073 | 2,647 | 1,946 | ||||||||||||
$ | 14,928 | $ | 11,749 | $ | 26,952 | $ | 22,838 | |||||||||
Capital Expenditures (including capitalized software): | ||||||||||||||||
Office furniture | $ | 16,348 | $ | 13,017 | $ | 29,836 | $ | 22,949 | ||||||||
Hearth products | 1,187 | 1,051 | 2,698 | 1,665 | ||||||||||||
General corporate | 10,894 | 4,758 | 18,587 | 9,005 | ||||||||||||
$ | 28,429 | $ | 18,826 | $ | 51,121 | $ | 33,619 | |||||||||
As of | As of | |||||||||||||||
June 28, | December 28, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Identifiable Assets: | ||||||||||||||||
Office furniture | $ | 756,888 | $ | 722,697 | ||||||||||||
Hearth products | 266,617 | 255,978 | ||||||||||||||
General corporate | 136,767 | 156,030 | ||||||||||||||
$ | 1,160,272 | $ | 1,134,705 | |||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 |
Annual Incentive Plan Expense [Member] | Annual Incentive Plan Expense [Member] | Earnings per Share, Diluted [Member] | Earnings per Share, Diluted [Member] | ||
Change in Accounting Estimate [Line Items] | ' | ' | ' | ' | ' |
Change in estimate, amount | ' | $0.80 | $2.40 | ' | ' |
Change in estimate, per share | ' | ' | ' | $0.01 | $0.04 |
Increase (decrease) in accounts payable and accrued expenses | 5.7 | ' | ' | ' | ' |
Payments to acquire property and equipment | 4.4 | ' | ' | ' | ' |
Increase (decrease) in capitalized software | $1.30 | ' | ' | ' | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $2.10 | $1.60 | $4.80 | $3.90 |
Unrecognized compensation cost | $9.60 | ' | $9.60 | ' |
Remaining requisite service period for unrecognized compensation cost (in years) | ' | ' | '1 year 1 month 6 days | ' |
Inventories_Details
Inventories (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Percentage of LIFO Inventory | 73.00% | ' |
Inventory, Net [Abstract] | ' | ' |
Finished products | $81,549 | $51,991 |
Materials and work in process | 74,416 | 65,247 |
LIFO allowance | -27,588 | -27,722 |
Inventories | $128,377 | $89,516 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income and Shareholders' Equity (Components) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||
Balance at December 28, 2013 | ' | ' | $965 | ' | ||
Other comprehensive income before reclassification | -49 | -2,086 | 398 | -2,057 | ||
Balance at June 28, 2014 | 1,363 | ' | 1,363 | ' | ||
Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||
Balance at December 28, 2013 | ' | ' | 965 | [1] | ' | |
Other comprehensive income before reclassification | ' | ' | 453 | [1] | ' | |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -55 | [1] | ' | |
Balance at June 28, 2014 | 1,363 | [1] | ' | 1,363 | [1] | ' |
Foreign Currency Translation Adjustment [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||
Balance at December 28, 2013 | ' | ' | 2,913 | [1] | ' | |
Other comprehensive income before reclassification | ' | ' | 431 | [1] | ' | |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | [1] | ' | |
Balance at June 28, 2014 | 3,344 | [1] | ' | 3,344 | [1] | ' |
Unrealized Gains on Marketable Securities [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||
Balance at December 28, 2013 | ' | ' | 81 | [1] | ' | |
Other comprehensive income before reclassification | ' | ' | -12 | [1] | ' | |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | [1] | ' | |
Balance at June 28, 2014 | 69 | [1] | ' | 69 | [1] | ' |
Pension Postretirement Liability [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||
Balance at December 28, 2013 | ' | ' | -2,140 | [1] | ' | |
Other comprehensive income before reclassification | ' | ' | 0 | [1] | ' | |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | [1] | ' | |
Balance at June 28, 2014 | -2,140 | [1] | ' | -2,140 | [1] | ' |
Derivative Financial Instruments [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||
Balance at December 28, 2013 | ' | ' | 111 | [1] | ' | |
Other comprehensive income before reclassification | ' | ' | 34 | [1] | ' | |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -55 | [1] | ' | |
Balance at June 28, 2014 | $90 | [1] | ' | $90 | [1] | ' |
[1] | All amounts are net-of tax. Amounts in parentheses indicate debits. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income and Shareholders' Equity (Reclassification) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Selling and administrative expenses | ($155,288) | ($152,078) | ($300,498) | ($296,634) | ||||
Tax (expense) or benefit | -5,203 | -6,189 | -10,445 | -5,564 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total | 20 | [1] | 59 | [1] | 55 | [1] | 60 | [1] |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Selling and administrative expenses | 0 | 0 | 0 | [1] | -116 | [1] | ||
Tax (expense) or benefit | 0 | 0 | 0 | [1] | 42 | [1] | ||
Total | 0 | [1] | 0 | [1] | 0 | [1] | -74 | [1] |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Financial Instruments [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Selling and administrative expenses | 32 | 95 | 87 | [1] | 212 | [1] | ||
Tax (expense) or benefit | -12 | -36 | -32 | [1] | -78 | [1] | ||
Total | $20 | [1] | $59 | [1] | $55 | [1] | $134 | [1] |
[1] | Amounts in parentheses indicate reductions to profit. |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income and Shareholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Schedule of Shareholders' Equity [Line Items] | ' | ' | ' | ' |
Stock repurchase program, remaining authorized repurchase amount | ' | ' | $74.20 | ' |
Cash dividends per common share | $0.25 | $0.24 | $0.49 | $0.48 |
Common Stock [Member] | ' | ' | ' | ' |
Schedule of Shareholders' Equity [Line Items] | ' | ' | ' | ' |
Repurchased common stock, shares | ' | ' | 364,000 | ' |
Repurchased common stock, value | ' | ' | $13.10 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Numerators: | ' | ' | ' | ' |
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $9,705 | $11,421 | $20,801 | $12,829 |
Denominators: | ' | ' | ' | ' |
Denominator for basic EPS weighted-average common shares outstanding | 45,019,783 | 45,412,668 | 45,029,148 | 45,283,716 |
Potentially dilutive shares from stock-based compensation plans | 848,000 | 697,000 | 813,000 | 608,000 |
Denominator for diluted EPS | 45,867,927 | 46,109,563 | 45,843,118 | 45,891,246 |
Earnings per share - basic | $0.22 | $0.25 | $0.46 | $0.28 |
Earnings per share - diluted | $0.21 | $0.25 | $0.45 | $0.28 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 945,338 | 880,657 | 999,423 | 1,303,625 |
Restructuring_Reserve_and_Plan1
Restructuring Reserve and Plant Closures (Changes in Restructuring Accruals) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 28, 2014 |
Restructuring Reserve [Roll Forward] | ' |
Balance as of December 29, 2012 | $55 |
Restructuring charges | 1,370 |
Cash payments | -47 |
Balance as of June 29, 2013 | 1,378 |
Severance [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance as of December 29, 2012 | 49 |
Restructuring charges | 1,362 |
Cash payments | -33 |
Balance as of June 29, 2013 | 1,378 |
Facility Exit Costs & Other [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance as of December 29, 2012 | 6 |
Restructuring charges | 8 |
Cash payments | -14 |
Balance as of June 29, 2013 | $0 |
Recovered_Sheet2
Restructuring Reserve And Plant Closures (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Sales price of furniture manufacturing facility | ' | ' | $13,588,000 | $196,000 |
Gain on sale of furniture manufacturing facility | 1,346,000 | -2,460,000 | 9,746,000 | -2,460,000 |
Income tax expense | 5,203,000 | 6,189,000 | 10,445,000 | 5,564,000 |
Office Furniture [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost | ' | ' | 4,800,000 | ' |
Additional restructuring and transition costs during the remainder of 2014 | ' | ' | 8,800,000 | ' |
Facility Closing [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Sales price of furniture manufacturing facility | ' | ' | 12,000,000 | ' |
Gain on sale of furniture manufacturing facility | ' | ' | 5,700,000 | ' |
Income tax expense | ' | ' | 2,700,000 | ' |
Facility Closing [Member] | Machinery and Equipment [Member] | Cost of Sales [Member] | Office Furniture [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Accelerated depreciation | ' | ' | 2,600,000 | ' |
Transaction Costs [Member] | Office Furniture [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost | ' | ' | 800,000 | ' |
Severance and Facility Exit Costs [Member] | Office Furniture [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost | ' | ' | $1,400,000 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 6 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Aggregated amortization expense | $5,100,000 | $5,100,000 |
Goodwill, impairment loss | 8,884,000 | ' |
Trademarks and Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets (excluding goodwill) | $41,000,000 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Finite-lived intangible assets, net | $111,391,000 | $94,635,000 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ' | ' |
2014 | 10,100,000 | ' |
2015 | 13,800,000 | ' |
2016 | 13,100,000 | ' |
2017 | 12,100,000 | ' |
2018 | 11,900,000 | ' |
Patents [Member] | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Finite-lived intangible assets, gross | 18,905,000 | 18,905,000 |
Less: accumulated amortization | 18,704,000 | 18,685,000 |
Finite-lived intangible assets, net | 201,000 | 220,000 |
Software [Member] | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Finite-lived intangible assets, gross | 74,428,000 | 52,778,000 |
Less: accumulated amortization | 16,079,000 | 14,380,000 |
Finite-lived intangible assets, net | 58,349,000 | 38,398,000 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Finite-lived intangible assets, gross | 110,851,000 | 110,609,000 |
Less: accumulated amortization | 58,010,000 | 54,592,000 |
Finite-lived intangible assets, net | $52,841,000 | $56,017,000 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Goodwill) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 28, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | $316,157 |
Accumulated impairment losses, beginning balance | -29,502 |
Goodwill, beginning balance | 286,655 |
Goodwill acquired | 0 |
Goodwill, Impairment Loss | -8,884 |
Foreign currency translation adjustments | 354 |
Goodwill, ending balance | 316,511 |
Accumulated impairment losses, ending balance | -38,386 |
Goodwill, ending balance | 278,125 |
Office Furniture [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 149,969 |
Accumulated impairment losses, beginning balance | -29,359 |
Goodwill, beginning balance | 120,610 |
Goodwill acquired | 0 |
Goodwill, Impairment Loss | -8,884 |
Foreign currency translation adjustments | 354 |
Goodwill, ending balance | 150,323 |
Accumulated impairment losses, ending balance | -38,243 |
Goodwill, ending balance | 112,080 |
Hearth Products [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill, beginning balance | 166,188 |
Accumulated impairment losses, beginning balance | -143 |
Goodwill, beginning balance | 166,045 |
Goodwill acquired | 0 |
Goodwill, Impairment Loss | 0 |
Foreign currency translation adjustments | 0 |
Goodwill, ending balance | 166,188 |
Accumulated impairment losses, ending balance | -143 |
Goodwill, ending balance | $166,045 |
Product_Warranties_Details
Product Warranties (Details) (USD $) | 6 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Product Warranties Disclosures [Abstract] | ' | ' |
Standard product warranty accrual, current | $7,700,000 | $6,400,000 |
Standard product warranty accrual, noncurrent | 7,400,000 | 6,800,000 |
Product Warranty Accrual [Roll Forward] | ' | ' |
Balance at beginning of period | 13,840,000 | 13,055,000 |
Accruals for warranties issued during period | 10,465,000 | 9,564,000 |
Adjustments related to pre-existing warranties | -14,000 | 347,000 |
Settlements made during the period | -9,248,000 | -9,823,000 |
Balance at end of period | $15,043,000 | $13,143,000 |
Postretirement_Health_Care_Det
Postretirement Health Care (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $126 | $131 | $252 | $262 |
Interest cost | 184 | 167 | 368 | 334 |
Amortization of transition obligation | 0 | 0 | 0 | 116 |
Amortization of (gain)/loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $310 | $298 | $620 | $712 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate | 35.00% | 35.20% |
Estimated effective income tax rate | 35.00% | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (Diesel Fuel Swap [Member], USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 28, 2014 |
Diesel Fuel Swap [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Expected hedging percentage of diesel fuel requirements for next twelve months | 50.00% |
Deferred net gains, net of tax | ($0.10) |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Balance Sheet Location) (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative, fair value, net | $145 | $176 |
Diesel Fuel Swap [Member] | Accounts Payable and Accrued Expenses [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative, fair value, net | -1 | 0 |
Diesel Fuel Swap [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative, fair value, net | $146 | $176 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Effect of Derivatives on Income Statement) (Details) (Cash Flow Hedging [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $153 | $412 | $55 | $390 |
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | 32 | 95 | 87 | 212 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | -3 | -5 | -4 | -4 |
Diesel Fuel Swap [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | 153 | 412 | 55 | 390 |
Diesel Fuel Swap [Member] | Selling and Administrative Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion) | 32 | 95 | 87 | 212 |
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion) | ($3) | ($5) | ($4) | ($4) |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets) (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Assets Fair Value Disclosure [Abstract] | ' | ' |
Derivative financial instruments | $145 | $176 |
Fair Value, Measurements, Recurring [Member] | Fair Value as of Measurement Date [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Derivative financial instruments | 145 | 176 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Derivative financial instruments | 145 | 176 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Fair Value as of Measurement Date [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 10,907 | 11,254 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 10,907 | 11,254 |
Fair Value, Measurements, Recurring [Member] | Government Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Fair Value as of Measurement Date [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,208 | 4,859 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | 1,208 | 4,859 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities, fair value disclosure | $0 | $0 |
Fair_Value_Measurements_Longte
Fair Value Measurements (Long-term Debt) (Details) (USD $) | Jun. 28, 2014 | Dec. 28, 2013 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $150,064,000 | $150,091,000 |
Fixed Rate Debt Instruments [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, fair value | 157,000,000 | 159,000,000 |
Long-term debt | $150,000,000 | $150,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Jun. 28, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Letters of credit used to back insurance policies and other obligations | $11 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 |
Segment | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | 2 | ' | ' |
Net sales | $509,143 | $510,698 | $961,344 | $952,995 | ' |
Income before income taxes | 14,868 | 17,588 | 31,126 | 18,142 | ' |
Depreciation and amortization expense | 14,928 | 11,749 | 26,952 | 22,838 | ' |
Capital expenditures (including capitalized software) | 28,429 | 18,826 | 51,121 | 33,619 | ' |
Identifiable assets | 1,160,272 | ' | 1,160,272 | ' | 1,134,705 |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total operating profit | 26,723 | 27,826 | 54,924 | 40,117 | ' |
Office Furniture [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 423,423 | 436,169 | 781,792 | 802,001 | ' |
Operations before restructuring charges | 28,524 | 22,092 | 44,989 | 30,948 | ' |
Restructuring and impairment charges | -10,282 | 35 | -10,254 | -121 | ' |
Total operating profit | 18,242 | 22,127 | 34,735 | 30,827 | ' |
Depreciation and amortization expense | 12,472 | 9,304 | 21,971 | 18,127 | ' |
Capital expenditures (including capitalized software) | 16,348 | 13,017 | 29,836 | 22,949 | ' |
Identifiable assets | 756,888 | ' | 756,888 | ' | 722,697 |
Hearth Products [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 85,720 | 74,529 | 179,552 | 150,994 | ' |
Total operating profit | 8,481 | 5,699 | 20,189 | 9,290 | ' |
Depreciation and amortization expense | 1,158 | 1,372 | 2,334 | 2,765 | ' |
Capital expenditures (including capitalized software) | 1,187 | 1,051 | 2,698 | 1,665 | ' |
Identifiable assets | 266,617 | ' | 266,617 | ' | 255,978 |
Segment Reconciling Items [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Unallocated corporate expense | -11,855 | -10,238 | -23,798 | -21,975 | ' |
Depreciation and amortization expense | 1,298 | 1,073 | 2,647 | 1,946 | ' |
Capital expenditures (including capitalized software) | 10,894 | 4,758 | 18,587 | 9,005 | ' |
Identifiable assets | $136,767 | ' | $136,767 | ' | $156,030 |