HNI (HNI) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - Jul. 04, 2015 - shares	Total
Document and Entity Information [Abstract]
Entity Registrant Name	HNI CORP
Entity Central Index Key	48,287
Document Type	10-Q
Document Period End Date	Jul. 4, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	44,350,077

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 33,438	$ 34,144
Short-term investments	5,252	3,052
Receivables	274,606	240,053
Inventories	164,684	121,791
Deferred income taxes	16,915	17,310
Prepaid expenses and other current assets	28,152	39,209
Total Current Assets	523,047	455,559
PROPERTY, PLANT, AND EQUIPMENT
Land and land improvements	28,603	27,329
Buildings	298,637	298,170
Machinery and equipment	511,004	492,646
Construction in progress	23,329	27,704
Property plant and equipment, at cost	861,573	845,849
Less accumulated depreciation	540,851	534,841
Net Property, Plant, and Equipment	320,722	311,008
GOODWILL	279,374	279,310
OTHER ASSETS	201,820	193,457
Total Assets	1,324,963	1,239,334
CURRENT LIABILITIES
Accounts payable and accrued expenses	404,685	453,754
Note payable and current maturities of long-term debt and capital lease obligations	304,326	160
Current maturities of other long-term obligations	4,225	3,419
Total Current Liabilities	713,236	457,333
LONG-TERM DEBT	9	197,736
OTHER LONG-TERM LIABILITIES	84,054	80,353
DEFERRED INCOME TAXES	$ 92,529	$ 89,411
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 - July 4, 2015 - 44,350,077 shares; January 3, 2015 – 44,165,676 shares	44,350	44,166
Additional paid-in capital	11,167	867
Retained earnings	383,931	374,929
Accumulated other comprehensive income	(4,661)	(5,375)
Total HNI Corporation shareholders' equity	434,787	414,587
Noncontrolling interest	348	(86)
Total Equity	435,135	414,501
Total Liabilities and Equity	$ 1,324,963	$ 1,239,334

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jul. 04, 2015	Jan. 03, 2015
Statement of Financial Position [Abstract]
Preferred Stock, Par Value (in dollars per share)	$ 1	$ 1
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value (in dollars per share)	$ 1	$ 1
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares Outstanding	44,350,077	44,165,676

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Net sales	$ 568,226	$ 509,143	$ 1,091,703	$ 961,344
Cost of sales	362,102	328,010	701,079	625,039
Gross profit	206,124	181,133	390,624	336,305
Selling and administrative expenses	167,278	155,288	335,982	300,498
(Gain) on sale of assets	0	(1,346)	0	(9,746)
Restructuring and impairment	(560)	10,282	(183)	10,254
Operating income	39,406	16,909	54,825	35,299
Interest income	119	146	209	216
Interest expense	1,968	2,187	3,957	4,389
Income before income taxes	37,557	14,868	51,077	31,126
Income taxes	13,680	5,203	18,748	10,445
Net income	23,877	9,665	32,329	20,681
Less: Net (loss) attributable to the noncontrolling interest	(2)	(40)	(28)	(120)
Net income attributable to HNI Corporation	$ 23,879	$ 9,705	$ 32,357	$ 20,801
Net income attributable to HNI Corporation per common share – basic (in dollars per share)	$ 0.54	$ 0.22	$ 0.73	$ 0.46
Average number of common shares outstanding – basic	44,416,008	45,019,783	44,359,898	45,029,148
Net income attributable to HNI Corporation per common share – diluted (in dollars per share)	$ 0.52	$ 0.21	$ 0.71	$ 0.45
Average number of common shares outstanding – diluted	45,620,984	45,867,927	45,573,952	45,843,118
Cash dividends per common share (in dollars per share)	$ 0.265	$ 0.25	$ 0.515	$ 0.49
Other comprehensive income, net of tax: three months 2015 $185; 2014 $30; six months 2015 $319; 2014 $(18)	$ 396	$ (49)	$ 715	$ 398
Comprehensive income	24,273	9,616	33,044	21,079
Less: Comprehensive (loss) attributable to noncontrolling interest	(2)	(40)	(28)	(120)
Comprehensive income attributable to HNI Corporation	$ 24,275	$ 9,656	$ 33,072	$ 21,199

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Other comprehensive income, tax	$ 185	$ 30	$ 319	$ (18)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Net Cash Flows From (To) Operating Activities:
Net income	$ 32,329	$ 20,681
Noncash items included in net income:
Depreciation and amortization	27,795	26,952
Other postretirement and post employment benefits	881	620
Stock-based compensation	6,262	4,752
Excess tax benefits from stock compensation	(1,552)	(144)
Deferred income taxes	3,437	1,550
(Gain) loss on sale, retirement and impairment of long-lived assets and intangibles, net	183	(581)
Other – net	2,012	1,255
Net increase (decrease) in operating assets and liabilities	(106,618)	(62,432)
Increase (decrease) in other liabilities	3,367	355
Net cash flows from (to) operating activities	(31,904)	(6,992)
Net Cash Flows From (To) Investing Activities:
Capital expenditures	(33,732)	(34,710)
Proceeds from sale of property, plant and equipment	124	13,588
Capitalized software	(16,150)	(16,412)
Purchase of investments	(798)	(798)
Sales or maturities of investments	1,550	4,770
Net cash flows from (to) investing activities	(49,006)	(33,562)
Net Cash Flows From (To) Financing Activities:
Proceeds from sales of HNI Corporation common stock	10,457	3,143
Withholdings related to net share settlements of equity based awards	(171)	(79)
Purchase of HNI Corporation common stock	(15,203)	(13,051)
Proceeds from note and long-term debt	347,929	100,473
Payments of note and long-term debt and other financing	(241,467)	(63,787)
Excess tax benefits from stock compensation	1,552	144
Dividends paid	(22,893)	(22,041)
Net cash flows from (to) financing activities	80,204	4,802
Net increase (decrease) in cash and cash equivalents	(706)	(35,752)
Cash and cash equivalents at beginning of period	34,144	65,030
Cash and cash equivalents at end of period	$ 33,438	$ 29,278

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 04, 2015
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 notes required by generally accepted accounting principles for complete financial statements. The January 3, 2015 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 July 4, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2016 . For further information, refer to the consolidated financial statements and accompanying notes included in HNI Corporation's (the "Corporation") Annual Report on Form 10-K for the fiscal year ended January 3, 2015 . Certain reclassifications have been made to the condensed consolidated financial statements of prior periods to conform to the current period presentation.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 04, 2015
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 months and six months ended July 4, 2015 and June 28, 2014 , the Corporation recognized $2.8 million and $6.3 million and $2.1 million and $4.8 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 July 4, 2015 , there was $5.3 million of unrecognized compensation cost related to nonvested stock options, which the Corporation expects to recognize over a weighted-average remaining service period of 1.2 years and $1.2 million of unrecognized compensation cost related to nonvested restricted stock units, which the Corporation expects to recognize over a weighted-average remaining service period of 0.7 years.

Inventories

Inventories	6 Months Ended
	Jul. 04, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method. (In thousands) July 4, 2015 January 3, 2015 Finished products $ 95,477 $ 65,126 Materials and work in process 97,219 84,677 LIFO allowance (28,012 ) (28,012 ) $ 164,684 $ 121,791

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity	6 Months Ended
	Jul. 04, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity	Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended July 4, 2015 : (In thousands) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Pension Postretirement Liability Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance at January 3, 2015 $ 2,223 $ 37 $ (6,763 ) $ (872 ) $ (5,375 ) Other comprehensive income (loss) before reclassifications 145 (2 ) — (266 ) (123 ) Amounts reclassified from accumulated other comprehensive income — — — 837 837 Balance at July 4, 2015 $ 2,368 $ 35 $ (6,763 ) $ (301 ) $ (4,661 ) 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 and six months ended July 4, 2015 and June 28, 2014 (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 July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Derivative financial instruments Diesel hedge Selling and administrative expenses $ (612 ) $ 32 $ (1,307 ) $ 87 Tax (expense) or benefit 229 (12 ) 470 (32 ) Net of tax $ (383 ) $ 20 $ (837 ) $ 55 Amounts in parentheses indicate reductions to profit. During the six months ended July 4, 2015 , the Corporation repurchased 305,000 shares of its common stock at a cost of approximately $15.2 million . As of July 4, 2015 , $204.2 million of the Corporation's Board of Directors' ("Board") current repurchase authorization remained unspent. These share repurchases, offset by shares issued under the member stock purchase plan and stock awards, account for the change in Additional paid-in capital balance for the six months ended July 4, 2015. During the six months ended July 4, 2015 , the Corporation paid dividends to shareholders of $0.515 per share.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 04, 2015
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) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 23,879 $ 9,705 $ 32,357 $ 20,801 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,416 45,020 44,360 45,029 Potentially dilutive shares from stock-based compensation plans 1,205 848 1,214 813 Denominator for diluted EPS 45,621 45,868 45,574 45,843 Earnings per share – basic $ 0.54 $ 0.22 $ 0.73 $ 0.46 Earnings per share – diluted $ 0.52 $ 0.21 $ 0.71 $ 0.45 The weighted average common stock equivalents presented above do not include the effect of 441,211 and 354,852 common stock equivalents for the three months ended July 4, 2015 and June 28, 2014 and 945,338 and 999,423 common stock equivalents for the six months ended July 4, 2015 and June 28, 2014 because their inclusion would be anti-dilutive.

Restructuring Reserve And Plant

Restructuring Reserve And Plant Closures	6 Months Ended
	Jul. 04, 2015
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 has closed, consolidated, and realigned a number of its office furniture facilities during the past few years. During the three months ended July 4, 2015 , in connection with the closures, consolidations, and realignments, the Corporation recorded a $0.6 million reduction of restructuring costs due to lower than anticipated postemployment costs. The following is a summary of changes in restructuring accruals during the six months ended July 4, 2015 . (In thousands) Severance Facility Exit Costs & Other Total Balance as of January 3, 2015 $ 1,213 $ — $ 1,213 Restructuring charges (788 ) 605 (183 ) Cash payments (284 ) (589 ) (873 ) Balance as of July 4, 2015 $ 141 $ 16 $ 157

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jul. 04, 2015
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 July 4, 2015 and January 3, 2015 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: (In thousands) July 4, 2015 January 3, 2015 Patents $ 18,945 $ 18,945 Less: accumulated amortization 18,747 18,724 Net patents 198 221 Software 107,224 93,343 Less: accumulated amortization 19,379 17,711 Net software 87,845 75,632 Customer lists and other 126,750 125,095 Less: accumulated amortization 63,572 59,743 Net customer lists and other 63,178 65,352 Net definite lived intangible assets $ 151,221 $ 141,205 Aggregate amortization expense for the six months ended July 4, 2015 and June 28, 2014 was $5.5 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) 2015 2016 2017 2018 2019 Amortization Expense $ 10.8 $ 11.4 $ 15.9 $ 15.8 $ 15.6 As events such as potential acquisitions, dispositions or impairments occur in the future, these amounts may change. The Corporation also owns certain trademarks and trade names with a net carrying amount of $41.0 million as of July 4, 2015 and January 3, 2015 . These 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 January 3, 2015 are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total Balance as of January 3, 2015 Goodwill $ 149,713 $ 181,901 $ 331,614 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of January 3, 2015 97,552 181,758 279,310 Goodwill acquired — 59 59 Foreign currency translation adjustments 5 — 5 Balance as of July 4, 2015 Goodwill 149,718 181,960 331,678 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of July 4, 2015 $ 97,557 $ 181,817 $ 279,374 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 increase in the hearth segment relates to a purchase price allocation adjustment for an acquisition completed during the fourth quarter of 2014. The purchase price allocation adjustments did not have a significant impact on the Corporation's Condensed Consolidated Balance Sheet as of July 4, 2015 or its Condensed Consolidated Statement of Comprehensive Income for the three months and six months ended July 4, 2015. Therefore, the Corporation has not retrospectively adjusted this financial information. The Corporation will record the final purchase price allocation during the third quarter 2015 upon finalization of deferred taxes associated with the acquisition.

Product Warranties

Product Warranties	6 Months Ended
	Jul. 04, 2015
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) July 4, 2015 June 28, 2014 Balance at beginning of period $ 16,719 $ 13,840 Accruals for warranties issued during period 10,535 10,465 Adjustments related to pre-existing warranties 349 (14 ) Settlements made during the period (11,139 ) (9,248 ) Balance at end of period $ 16,464 $ 15,043 The portion of the reserve for estimated settlements expected to be paid in the next twelve months was $8.1 million and $7.7 million as of July 4, 2015 and June 28, 2014 , respectively, and is 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 $8.4 million and $7.4 million , as of July 4, 2015 and June 28, 2014 , respectively, and is included in "Other Long-Term Liabilities" in the Condensed Consolidated Balance Sheets.

Postretirement Health Care

Postretirement Health Care	6 Months Ended
	Jul. 04, 2015
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) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ 201 $ 126 $ 402 $ 252 Interest cost 204 184 408 368 Amortization of (gain)/loss 12 — 71 — Net periodic benefit cost $ 417 $ 310 $ 881 $ 620

Income Taxes

Income Taxes	6 Months Ended
	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for the three months ended July 4, 2015 reflects an effective tax rate of 36.4 percent compared to 35.0 percent for the same period last year. The provision for income taxes for the six months ended July 4, 2015 reflects an effective tax rate of 36.7 percent compared to 33.6 percent for the same period last year.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jul. 04, 2015
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 Independent freight carriers, used by the Corporation to deliver its products, 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 July 4, 2015 , $0.3 million of deferred net losses, net of tax, included in equity ("Accumulated other comprehensive income" ("AOCI") 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 July 4, 2015 January 3, 2015 Diesel fuel swap Accounts payable and accrued expenses $ (484 ) $ (1,374 ) Diesel fuel swap Prepaid expenses and other current assets — — Net balance at end of period $ (484 ) $ (1,374 ) The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended July 4, 2015 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 $ (57 ) Selling and administrative expenses $ (612 ) Selling and administrative expenses $ — Total $ (57 ) $ (612 ) $ — The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended July 4, 2015 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 $ (416 ) Selling and administrative expenses $ (1,307 ) Selling and administrative expenses $ — Total $ (416 ) $ (1,307 ) $ — 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 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 considered immaterial.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 04, 2015
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 July 4, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,063 $ — $ 9,063 $ — Corporate bonds $ 2,210 $ — $ 2,210 $ — Derivative financial instruments $ (484 ) $ — $ (484 ) $ — Assets measured at fair value as of January 3, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,835 $ — $ 9,835 $ — Corporate bonds $ 2,205 $ — $ 2,205 $ — Derivative financial instruments $ (1,374 ) $ — $ (1,374 ) $ — 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 July 4, 2015 and January 3, 2015 , the end of the Corporation's 2014 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 $151 million at July 4, 2015 and $154 million at January 3, 2015 , compared to the carrying value of $150 million . This debt is classified as current on the Condensed Consolidated Balance Sheet as of July 4, 2015 due to the timing of maturity. The Corporation plans to refinance at which point the debt classification will move back to long-term.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 04, 2015
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
	Jul. 04, 2015
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	New Accounting Standards 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 is effective for fiscal years beginning on or after December 15, 2014 and interim periods within those annual periods with early adoption allowed. The Corporation adopted the guidance effective January 4, 2015, the beginning of the Corporation's 2015 fiscal year. The guidance did not have a material impact on the Corporation's financial statements.

Business Segment Information

Business Segment Information	6 Months Ended
	Jul. 04, 2015
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment. The aggregated 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 and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments and corporate office real estate and related equipment. No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation's primary market and capital investments are concentrated in the United States. Reportable segment data reconciled to the Corporation's condensed consolidated financial statements for the three and six month periods ended July 4, 2015 , and June 28, 2014 , is as follows: Three Months Ended Six Months Ended (In thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net Sales: Office Furniture $ 450,624 $ 423,423 $ 858,053 $ 781,792 Hearth Products 117,602 85,720 233,650 179,552 $ 568,226 $ 509,143 $ 1,091,703 $ 961,344 Operating Profit: Office furniture 39,791 18,242 59,943 34,735 Hearth products 11,162 8,481 23,663 20,189 Total operating profit 50,953 26,723 83,606 54,924 Unallocated corporate expense (13,396 ) (11,855 ) (32,529 ) (23,798 ) Income before income taxes $ 37,557 $ 14,868 $ 51,077 $ 31,126 Depreciation & Amortization Expense: Office furniture $ 10,263 $ 12,472 $ 20,640 $ 21,971 Hearth products 2,047 1,158 4,005 2,334 General corporate 1,625 1,298 3,150 2,647 $ 13,935 $ 14,928 $ 27,795 $ 26,952 Capital Expenditures (including capitalized software): Office furniture $ 11,848 $ 16,348 $ 26,399 $ 29,836 Hearth products 1,993 1,187 4,397 2,698 General corporate 7,818 10,894 19,086 18,588 $ 21,659 $ 28,429 $ 49,882 $ 51,122 As of As of (In thousands) July 4, January 3, Identifiable Assets: Office furniture $ 788,899 $ 724,293 Hearth products 359,992 341,315 General corporate 176,072 173,726 $ 1,324,963 $ 1,239,334

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 04, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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.
Inventory	The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method.
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 increase in the hearth segment relates to a purchase price allocation adjustment for an acquisition completed during the fourth quarter of 2014.
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	New Accounting Standards 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 is effective for fiscal years beginning on or after December 15, 2014 and interim periods within those annual periods with early adoption allowed. The Corporation adopted the guidance effective January 4, 2015, the beginning of the Corporation's 2015 fiscal year. The guidance did not have a material impact on the Corporation's financial statements.
Segment Reporting	Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment. The aggregated 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 and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 04, 2015
Inventory Disclosure [Abstract]
Schedule of Inventories	The Corporation values its inventory at the lower of cost or market with approximately 72% valued by the last-in, first-out ("LIFO") costing method. (In thousands) July 4, 2015 January 3, 2015 Finished products $ 95,477 $ 65,126 Materials and work in process 97,219 84,677 LIFO allowance (28,012 ) (28,012 ) $ 164,684 $ 121,791

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables)	6 Months Ended
	Jul. 04, 2015
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 July 4, 2015 : (In thousands) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Pension Postretirement Liability Derivative Financial Instruments Accumulated Other Comprehensive Income (Loss) Balance at January 3, 2015 $ 2,223 $ 37 $ (6,763 ) $ (872 ) $ (5,375 ) Other comprehensive income (loss) before reclassifications 145 (2 ) — (266 ) (123 ) Amounts reclassified from accumulated other comprehensive income — — — 837 837 Balance at July 4, 2015 $ 2,368 $ 35 $ (6,763 ) $ (301 ) $ (4,661 ) 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 and six months ended July 4, 2015 and June 28, 2014 (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 July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Derivative financial instruments Diesel hedge Selling and administrative expenses $ (612 ) $ 32 $ (1,307 ) $ 87 Tax (expense) or benefit 229 (12 ) 470 (32 ) Net of tax $ (383 ) $ 20 $ (837 ) $ 55 Amounts in parentheses indicate reductions to profit.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 04, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Basic and Diluted	The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended (In thousands, except per share data) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Numerators: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 23,879 $ 9,705 $ 32,357 $ 20,801 Denominators: Denominator for basic EPS weighted-average common shares outstanding 44,416 45,020 44,360 45,029 Potentially dilutive shares from stock-based compensation plans 1,205 848 1,214 813 Denominator for diluted EPS 45,621 45,868 45,574 45,843 Earnings per share – basic $ 0.54 $ 0.22 $ 0.73 $ 0.46 Earnings per share – diluted $ 0.52 $ 0.21 $ 0.71 $ 0.45

Restructuring Reserve and Pla26

Restructuring Reserve and Plant Closures (Tables)	6 Months Ended
	Jul. 04, 2015
Restructuring and Related Activities [Abstract]
Summary of Changes in Restructuring Accruals	The following is a summary of changes in restructuring accruals during the six months ended July 4, 2015 . (In thousands) Severance Facility Exit Costs & Other Total Balance as of January 3, 2015 $ 1,213 $ — $ 1,213 Restructuring charges (788 ) 605 (183 ) Cash payments (284 ) (589 ) (873 ) Balance as of July 4, 2015 $ 141 $ 16 $ 157

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jul. 04, 2015
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 July 4, 2015 and January 3, 2015 , which are reflected in the "Other Assets" line item in the Corporation's Condensed Consolidated Balance Sheets: (In thousands) July 4, 2015 January 3, 2015 Patents $ 18,945 $ 18,945 Less: accumulated amortization 18,747 18,724 Net patents 198 221 Software 107,224 93,343 Less: accumulated amortization 19,379 17,711 Net software 87,845 75,632 Customer lists and other 126,750 125,095 Less: accumulated amortization 63,572 59,743 Net customer lists and other 63,178 65,352 Net definite lived intangible assets $ 151,221 $ 141,205
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) 2015 2016 2017 2018 2019 Amortization Expense $ 10.8 $ 11.4 $ 15.9 $ 15.8 $ 15.6
Schedule of Goodwill	The changes in the carrying amount of goodwill since January 3, 2015 are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total Balance as of January 3, 2015 Goodwill $ 149,713 $ 181,901 $ 331,614 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of January 3, 2015 97,552 181,758 279,310 Goodwill acquired — 59 59 Foreign currency translation adjustments 5 — 5 Balance as of July 4, 2015 Goodwill 149,718 181,960 331,678 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) Net goodwill balance as of July 4, 2015 $ 97,557 $ 181,817 $ 279,374

Product Warranties (Tables)

Product Warranties (Tables)	6 Months Ended
	Jul. 04, 2015
Product Warranties Disclosures [Abstract]
Activity Associated with Warranty Obligations	Activity associated with warranty obligations was as follows during the periods noted: Six Months Ended (In thousands) July 4, 2015 June 28, 2014 Balance at beginning of period $ 16,719 $ 13,840 Accruals for warranties issued during period 10,535 10,465 Adjustments related to pre-existing warranties 349 (14 ) Settlements made during the period (11,139 ) (9,248 ) Balance at end of period $ 16,464 $ 15,043

Postretirement Health Care (Tab

Postretirement Health Care (Tables)	6 Months Ended
	Jul. 04, 2015
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	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) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ 201 $ 126 $ 402 $ 252 Interest cost 204 184 408 368 Amortization of (gain)/loss 12 — 71 — Net periodic benefit cost $ 417 $ 310 $ 881 $ 620

Derivative Financial Instrume30

Derivative Financial Instruments (Tables)	6 Months Ended
	Jul. 04, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Location and Fair Value of Derivative Instruments Reported in Balance Sheets	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 July 4, 2015 January 3, 2015 Diesel fuel swap Accounts payable and accrued expenses $ (484 ) $ (1,374 ) Diesel fuel swap Prepaid expenses and other current assets — — Net balance at end of period $ (484 ) $ (1,374 )
Effect of Derivative Instruments on Statements of Comprehensive Income	The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the three months ended July 4, 2015 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 $ (57 ) Selling and administrative expenses $ (612 ) Selling and administrative expenses $ — Total $ (57 ) $ (612 ) $ — The effect of derivative instruments on the Corporation's Condensed Consolidated Statements of Comprehensive Income for the six months ended July 4, 2015 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 $ (416 ) Selling and administrative expenses $ (1,307 ) Selling and administrative expenses $ — Total $ (416 ) $ (1,307 ) $ — 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 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 04, 2015
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value	Assets measured at fair value as of July 4, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,063 $ — $ 9,063 $ — Corporate bonds $ 2,210 $ — $ 2,210 $ — Derivative financial instruments $ (484 ) $ — $ (484 ) $ — Assets measured at fair value as of January 3, 2015 were as follows: (In thousands) Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Government securities $ 9,835 $ — $ 9,835 $ — Corporate bonds $ 2,205 $ — $ 2,205 $ — Derivative financial instruments $ (1,374 ) $ — $ (1,374 ) $ —

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jul. 04, 2015
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 July 4, 2015 , and June 28, 2014 , is as follows: Three Months Ended Six Months Ended (In thousands) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net Sales: Office Furniture $ 450,624 $ 423,423 $ 858,053 $ 781,792 Hearth Products 117,602 85,720 233,650 179,552 $ 568,226 $ 509,143 $ 1,091,703 $ 961,344 Operating Profit: Office furniture 39,791 18,242 59,943 34,735 Hearth products 11,162 8,481 23,663 20,189 Total operating profit 50,953 26,723 83,606 54,924 Unallocated corporate expense (13,396 ) (11,855 ) (32,529 ) (23,798 ) Income before income taxes $ 37,557 $ 14,868 $ 51,077 $ 31,126 Depreciation & Amortization Expense: Office furniture $ 10,263 $ 12,472 $ 20,640 $ 21,971 Hearth products 2,047 1,158 4,005 2,334 General corporate 1,625 1,298 3,150 2,647 $ 13,935 $ 14,928 $ 27,795 $ 26,952 Capital Expenditures (including capitalized software): Office furniture $ 11,848 $ 16,348 $ 26,399 $ 29,836 Hearth products 1,993 1,187 4,397 2,698 General corporate 7,818 10,894 19,086 18,588 $ 21,659 $ 28,429 $ 49,882 $ 51,122 As of As of (In thousands) July 4, January 3, Identifiable Assets: Office furniture $ 788,899 $ 724,293 Hearth products 359,992 341,315 General corporate 176,072 173,726 $ 1,324,963 $ 1,239,334

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.8	$ 2.1	$ 6.3	$ 4.8
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	5.3		$ 5.3
Remaining requisite service period for unrecognized compensation cost (in years)			1 year 2 months 12 days
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 1.2		$ 1.2
Remaining requisite service period for unrecognized compensation cost (in years)			8 months 12 days

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Inventory Disclosure [Abstract]
Percentage of LIFO Inventory	72.00%
Inventory, Net [Abstract]
Finished products	$ 95,477	$ 65,126
Materials and work in process	97,219	84,677
LIFO allowance	(28,012)	(28,012)
Inventories	$ 164,684	$ 121,791

Accumulated Other Comprehensi35

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Components) (Details) $ in Thousands	6 Months Ended
	Jul. 04, 2015USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at January 3, 2015	$ (5,375)
Balance at July 4, 2015	(4,661)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at January 3, 2015	(5,375)
Other comprehensive income (loss) before reclassifications	(123)
Amounts reclassified from accumulated other comprehensive income	837
Balance at July 4, 2015	(4,661)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at January 3, 2015	2,223
Other comprehensive income (loss) before reclassifications	145
Amounts reclassified from accumulated other comprehensive income	0
Balance at July 4, 2015	2,368
Unrealized Gains (Losses) on Marketable Securities [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at January 3, 2015	37
Other comprehensive income (loss) before reclassifications	(2)
Amounts reclassified from accumulated other comprehensive income	0
Balance at July 4, 2015	35
Pension Postretirement Liability [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at January 3, 2015	(6,763)
Other comprehensive income (loss) before reclassifications	0
Amounts reclassified from accumulated other comprehensive income	0
Balance at July 4, 2015	(6,763)
Derivative Financial Instruments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at January 3, 2015	(872)
Other comprehensive income (loss) before reclassifications	(266)
Amounts reclassified from accumulated other comprehensive income	837
Balance at July 4, 2015	$ (301)

Accumulated Other Comprehensi36

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Reclassification) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling and administrative expenses	$ (167,278)	$ (155,288)	$ (335,982)	$ (300,498)
Tax (expense) or benefit	(13,680)	(5,203)	(18,748)	(10,445)
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	(612)	32	(1,307)	87
Tax (expense) or benefit	229	(12)	470	(32)
Total	$ (383)	$ 20	$ (837)	$ 55

Accumulated Other Comprehensi37

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Class of Stock [Line Items]
Cash dividends per common share (in dollars per share)	$ 0.265	$ 0.25	$ 0.515	$ 0.49
Common Stock [Member]
Class of Stock [Line Items]
Repurchased common stock, shares			305,000
Repurchased common stock, value			$ 15.2
Stock repurchase program, remaining authorized repurchase amount	$ 204.2		$ 204.2

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Numerators:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income	$ 23,879	$ 9,705	$ 32,357	$ 20,801
Denominators:
Denominator for basic EPS weighted-average common shares outstanding	44,416,008	45,019,783	44,359,898	45,029,148
Potentially dilutive shares from stock-based compensation plans	1,205,000	848,000	1,214,000	813,000
Denominator for diluted EPS	45,620,984	45,867,927	45,573,952	45,843,118
Earnings per share - basic (in dollars per share)	$ 0.54	$ 0.22	$ 0.73	$ 0.46
Earnings per share - diluted (in dollars per share)	$ 0.52	$ 0.21	$ 0.71	$ 0.45
Earnings Per Share, Diluted, Other Disclosures [Abstract]
Antidilutive securities excluded from computation of earnings per share	441,211	354,852	945,338	999,423

Restructuring Reserve And Pla39

Restructuring Reserve And Plant Closures (Narrative) (Details) $ in Millions	3 Months Ended
	Jul. 04, 2015USD ($)
Office Furniture [Member]
Restructuring Cost and Reserve [Line Items]
Reduction of restructuring costs	$ 0.6

Restructuring Reserve and Pla40

Restructuring Reserve and Plant Closures (Changes in Restructuring Accruals) (Details) $ in Thousands	6 Months Ended
	Jul. 04, 2015USD ($)
Restructuring Reserve [Roll Forward]
Balance as of January 3, 2015	$ 1,213
Restructuring charges	(183)
Cash payments	(873)
Balance as of July 4, 2015	157
Severance [Member]
Restructuring Reserve [Roll Forward]
Balance as of January 3, 2015	1,213
Restructuring charges	(788)
Cash payments	(284)
Balance as of July 4, 2015	141
Facility Exit Costs & Other [Member]
Restructuring Reserve [Roll Forward]
Balance as of January 3, 2015	0
Restructuring charges	605
Cash payments	(589)
Balance as of July 4, 2015	$ 16

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Aggregated amortization expense	$ 5.5	$ 5.1
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	$ 41		$ 41

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, net	$ 151,221	$ 141,205
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
2,015	10,800
2,016	11,400
2,017	15,900
2,018	15,800
2,019	15,600
Patents [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	18,945	18,945
Less: accumulated amortization	18,747	18,724
Finite-lived intangible assets, net	198	221
Software [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	107,224	93,343
Less: accumulated amortization	19,379	17,711
Finite-lived intangible assets, net	87,845	75,632
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Finite-lived intangible assets, gross	126,750	125,095
Less: accumulated amortization	63,572	59,743
Finite-lived intangible assets, net	$ 63,178	$ 65,352

Goodwill and Other Intangible43

Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Thousands	6 Months Ended
	Jul. 04, 2015USD ($)
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 331,614
Accumulated impairment losses, beginning balance	(52,304)
Goodwill, net, beginning balance	279,310
Goodwill acquired	59
Foreign currency translation adjustments	5
Goodwill, gross, ending balance	331,678
Accumulated impairment losses, ending balance	(52,304)
Goodwill, net, ending balance	279,374
Office Furniture [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	149,713
Accumulated impairment losses, beginning balance	(52,161)
Goodwill, net, beginning balance	97,552
Goodwill acquired	0
Foreign currency translation adjustments	5
Goodwill, gross, ending balance	149,718
Accumulated impairment losses, ending balance	(52,161)
Goodwill, net, ending balance	97,557
Hearth Products [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	181,901
Accumulated impairment losses, beginning balance	(143)
Goodwill, net, beginning balance	181,758
Goodwill acquired	59
Foreign currency translation adjustments	0
Goodwill, gross, ending balance	181,960
Accumulated impairment losses, ending balance	(143)
Goodwill, net, ending balance	$ 181,817

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 16,719	$ 13,840
Accruals for warranties issued during period	10,535	10,465
Adjustments related to pre-existing warranties	349	(14)
Settlements made during the period	(11,139)	(9,248)
Balance at end of period	16,464	15,043
Standard product warranty accrual, current	8,100	7,700
Standard product warranty accrual, noncurrent	$ 8,400	$ 7,400

Postretirement Health Care (Det

Postretirement Health Care (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 201	$ 126	$ 402	$ 252
Interest cost	204	184	408	368
Amortization of (gain)/loss	12	0	71	0
Net periodic benefit cost	$ 417	$ 310	$ 881	$ 620

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
Effective income tax rate	36.40%	35.00%	36.70%	33.60%

Derivative Financial Instrume47

Derivative Financial Instruments (Narrative) (Details) - Jul. 04, 2015 - Diesel Fuel Swap [Member] $ in Millions	USD ($)counterparty
Derivatives, Fair Value [Line Items]
Number of counterparties	2
Expected hedging percentage of diesel fuel requirements for next twelve months	50.00%
Deferred net losses, net of tax expected to be reclassified to current earnings over the next twelve months | $	$ 0.3

Derivative Financial Instrume48

Derivative Financial Instruments (Balance Sheet Location) (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Derivative, Fair Value, Net [Abstract]
Derivative asset (liability) fair value	$ (484)	$ (1,374)
Diesel Fuel Swap [Member] | Accounts Payable and Accrued Expenses [Member]
Derivative, Fair Value, Net [Abstract]
Derivative asset (liability) fair value	(484)	(1,374)
Diesel Fuel Swap [Member] | Prepaid Expenses and Other Current Assets [Member]
Derivative, Fair Value, Net [Abstract]
Derivative asset (liability) fair value	$ 0	$ 0

Derivative Financial Instrume49

Derivative Financial Instruments (Effect of Derivatives on Income Statement) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	$ (57)	$ 153	$ (416)	$ 55
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion)	(612)	32	(1,307)	87
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)	0	(3)	0	(4)
Diesel Fuel Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)	(57)	153	(416)	55
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)	(612)	32	(1,307)	87
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)	$ 0	$ (3)	$ 0	$ (4)

Fair Value Measurements (Assets

Fair Value Measurements (Assets) (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Assets Fair Value Disclosure [Abstract]
Derivative financial instruments	$ (484)	$ (1,374)
Fair Value, Measurements, Recurring [Member]
Assets Fair Value Disclosure [Abstract]
Derivative financial instruments	(484)	(1,374)
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	(484)	(1,374)
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]
Assets Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value disclosure	9,063	9,835
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	9,063	9,835
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]
Assets Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value disclosure	2,210	2,205
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	2,210	2,205
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 (Long-t

Fair Value Measurements (Long-term Debt) (Details) - Fixed Rate Debt Instruments [Member] - USD ($) $ in Millions	Jul. 04, 2015	Jan. 03, 2015
Debt Instrument [Line Items]
Long-term debt, fair value	$ 151	$ 154
Long-term debt	$ 150	$ 150

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jul. 04, 2015USD ($)
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) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015USD ($)	Jun. 28, 2014USD ($)	Jul. 04, 2015USD ($)Segment	Jun. 28, 2014USD ($)	Jan. 03, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment			2
Net sales	$ 568,226	$ 509,143	$ 1,091,703	$ 961,344
Income before income taxes	37,557	14,868	51,077	31,126
Depreciation and amortization expense	13,935	14,928	27,795	26,952
Capital expenditures (including capitalized software)	21,659	28,429	49,882	51,122
Identifiable assets	1,324,963		1,324,963		$ 1,239,334
Operating Segments [Member]
Segment Reporting Information [Line Items]
Income before income taxes	50,953	26,723	83,606	54,924
Operating Segments [Member] | Office Furniture [Member]
Segment Reporting Information [Line Items]
Net sales	450,624	423,423	858,053	781,792
Income before income taxes	39,791	18,242	59,943	34,735
Depreciation and amortization expense	10,263	12,472	20,640	21,971
Capital expenditures (including capitalized software)	11,848	16,348	26,399	29,836
Identifiable assets	788,899		788,899		724,293
Operating Segments [Member] | Hearth Products [Member]
Segment Reporting Information [Line Items]
Net sales	117,602	85,720	233,650	179,552
Income before income taxes	11,162	8,481	23,663	20,189
Depreciation and amortization expense	2,047	1,158	4,005	2,334
Capital expenditures (including capitalized software)	1,993	1,187	4,397	2,698
Identifiable assets	359,992		359,992		341,315
Corporate [Member]
Segment Reporting Information [Line Items]
Income before income taxes	(13,396)	(11,855)	(32,529)	(23,798)
Depreciation and amortization expense	1,625	1,298	3,150	2,647
Capital expenditures (including capitalized software)	7,818	$ 10,894	19,086	$ 18,588
Identifiable assets	$ 176,072		$ 176,072		$ 173,726