Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jan. 02, 2016 | Feb. 05, 2016 | Jul. 04, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HNI CORP | ||
Entity Central Index Key | 48,287 | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 2, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 44,159,340 | ||
Trading Symbol | HNI | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,373,219,063 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 2,304,419 | $ 2,222,695 | $ 2,059,964 |
Cost of products sold | 1,457,021 | 1,438,495 | 1,344,672 |
Gross profit | 847,398 | 784,200 | 715,292 |
Selling and administrative expenses | 672,125 | 649,055 | 606,512 |
(Gain) loss on sale of assets | (195) | (10,723) | 2,460 |
Restructuring and impairment charges | 11,792 | 33,019 | 333 |
Operating income | 163,676 | 112,849 | 105,987 |
Interest income | 395 | 418 | 626 |
Interest expense | 6,901 | 8,336 | 9,906 |
Income before income taxes | 157,170 | 104,931 | 96,707 |
Income taxes | 51,764 | 43,776 | 33,338 |
Net income | 105,406 | 61,155 | 63,369 |
Less: Net (loss) attributable to the noncontrolling interest | (30) | (316) | (314) |
Net income attributable to HNI Corporation | $ 105,436 | $ 61,471 | $ 63,683 |
Net income attributable to HNI Corporation per common share – basic | $ 2.38 | $ 1.37 | $ 1.41 |
Weighted average shares outstanding – basic | 44,285,298 | 44,759,716 | 45,250,665 |
Net income attributable to HNI Corporation per common share – diluted | $ 2.32 | $ 1.35 | $ 1.39 |
Weighted average shares outstanding - diluted | 45,440,653 | 45,578,872 | 45,956,280 |
Foreign currency translation adjustments | $ (1,901) | $ (691) | $ (2,562) |
Change in unrealized gains and losses on marketable securities (net of tax) | (39) | (44) | (124) |
Change in pension and postretirement liabilty (net of tax) | 1,256 | (4,622) | 2,151 |
Change in derivative financial instruments (net of tax) | 873 | (983) | 187 |
Other comprehensive income(loss) net of tax | 189 | (6,340) | (348) |
Comprehensive income | 105,595 | 54,815 | 63,021 |
Less: Comprehensive (loss) attributable to noncontrolling interest | (30) | (316) | (314) |
Comprehensive income attributable to HNI Corporation | $ 105,625 | $ 55,131 | $ 63,335 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 28,548 | $ 34,144 |
Short-term investments | 4,252 | 3,052 |
Receivables, net | 243,409 | 240,053 |
Inventories, net | 125,228 | 121,791 |
Deferred income taxes | 0 | 17,310 |
Prepaid expenses and other current assets | 36,933 | 39,209 |
Total Current Assets | 438,370 | 455,559 |
Property, Plant, and Equipment | 341,159 | 311,008 |
Goodwill | 277,650 | 279,310 |
Other Assets | 206,746 | 193,457 |
Total Assets | 1,263,925 | 1,239,334 |
Current Liabilities | ||
Accounts payable and accrued expenses | 424,405 | 453,754 |
Note payable and current maturities of long-term debt and capital lease obligations | 5,477 | 160 |
Current maturities of other long-term obligations | 6,018 | 3,419 |
Total Current Liabilities | 435,900 | 457,333 |
Long-Term Debt | 185,000 | 197,736 |
Other Long-Term Liabilities | 76,792 | 80,353 |
Deferred Income Taxes | $ 88,934 | $ 89,411 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock - $1 par value; Authorized: 2,000; Issued: None | $ 0 | $ 0 |
Common stock - $1 par value; Authorized 200,000; Issued and outstanding: 2015-44,158; 2014-44,166 | 44,158 | 44,166 |
Additional paid-in capital | 4,407 | 867 |
Retained Earnings | 433,575 | 374,929 |
Accumulated other comprehensive income | (5,186) | (5,375) |
Total HNI Corporation shareholders' equity | 476,954 | 414,587 |
Noncontrolling interest | 345 | (86) |
Total Equity | 477,299 | 414,501 |
Total Liabilities and Equity | $ 1,263,925 | $ 1,239,334 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 02, 2016 | Jan. 03, 2015 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 44,158,256 | 44,165,676 |
Common stock, shares outstanding | 44,158,256 | 44,165,676 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Noncontrolling Interest [Member] |
Beginning Balance at Dec. 29, 2012 | $ 420,660 | $ 44,951 | $ 20,153 | $ 353,942 | $ 1,313 | $ 301 |
Comprehensive income: | ||||||
Net income (loss) | 63,369 | 63,683 | (314) | |||
Other comprehensive (loss) (net of tax) | (348) | (348) | ||||
Distributions to noncontrolling interest | (167) | (167) | ||||
Change in ownership of noncontrolling interest | (210) | (479) | 269 | |||
Cash dividends (dollars per share) | (43,494) | (43,494) | ||||
Common shares – treasury: | ||||||
Shares purchased | (27,488) | (740) | (26,748) | |||
Shares issued under Members’ Stock Purchase Plan and stock awards | 24,095 | 771 | 23,324 | |||
Ending Balance at Dec. 28, 2013 | 436,417 | 44,982 | 16,729 | 373,652 | 965 | 89 |
Comprehensive income: | ||||||
Net income (loss) | 61,155 | 61,471 | (316) | |||
Other comprehensive (loss) (net of tax) | (6,340) | (6,340) | ||||
Distributions to noncontrolling interest | (5) | (5) | ||||
Change in ownership of noncontrolling interest | 0 | (146) | 146 | |||
Cash dividends (dollars per share) | (44,328) | (44,328) | ||||
Common shares – treasury: | ||||||
Shares purchased | (67,908) | (1,666) | (50,522) | 15,720 | ||
Shares issued under Members’ Stock Purchase Plan and stock awards | 35,510 | 850 | 34,660 | |||
Ending Balance at Jan. 03, 2015 | 414,501 | 44,166 | 867 | 374,929 | (5,375) | (86) |
Comprehensive income: | ||||||
Net income (loss) | 105,406 | 105,436 | $ (30) | |||
Other comprehensive (loss) (net of tax) | 189 | 189 | ||||
Distributions to noncontrolling interest | 0 | |||||
Change in ownership of noncontrolling interest | 0 | (461) | $ 461 | |||
Cash dividends (dollars per share) | (46,329) | (46,329) | ||||
Common shares – treasury: | ||||||
Shares purchased | (26,657) | (550) | (26,107) | |||
Shares issued under Members’ Stock Purchase Plan and stock awards | 30,189 | 542 | 29,647 | |||
Ending Balance at Jan. 02, 2016 | $ 477,299 | $ 44,158 | $ 4,407 | $ 433,575 | $ (5,186) | $ 345 |
CONSOLIDATED STATEMENTS OF EQU6
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Cash dividends paid per common share | $ 0.265 | $ 0.265 | $ 0.265 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 1.045 | $ 0.99 | $ 0.96 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Net Cash Flows From (To) Operating Activities: | |||
Net income (loss) | $ 105,406 | $ 61,155 | $ 63,369 |
Noncash items included in net income: | |||
Depreciation and amortization | 57,564 | 56,722 | 46,621 |
Other postretirement and post-employment benefits | 1,856 | 1,239 | 1,309 |
Stock-based compensation | 9,097 | 8,597 | 7,451 |
Excess tax benefits from stock compensation | (1,581) | (2,161) | (2,211) |
Deferred income taxes | 15,257 | 14,655 | 18,451 |
Net (gain) loss on sale of long-lived assets | 1,222 | (10,327) | 344 |
Loss on impairment of intangibles | 11,241 | 29,382 | 0 |
Loss on sale of business | 0 | 0 | 2,177 |
Other – net | (1,216) | 4,693 | 4,419 |
Changes in working capital, excluding acquisition and disposition: | |||
Receivables | (3,592) | 8,631 | (21,029) |
Inventories | (4,221) | (23,437) | 1,606 |
Prepaid expenses and other current assets | (5,940) | (4,622) | 526 |
Accounts payable and accrued expenses | (21,121) | 32,915 | 31,215 |
Income taxes | 6,799 | (11,165) | 4,525 |
Increase (decrease) in other liabilities | 2,581 | 1,519 | 6,229 |
Net cash flows from (to) operating activities | 173,352 | 167,796 | 165,002 |
Net Cash Flows From (To) Investing Activities: | |||
Capital expenditures | (82,610) | (74,323) | (60,977) |
Proceeds from sale of property, plant and equipment | 2,201 | 16,361 | 421 |
Capitalized software | (32,356) | (38,390) | (17,918) |
Acquisition spending, net of cash acquired | 0 | (61,823) | 0 |
Purchase of investments | (3,660) | (3,801) | (1,107) |
Sales or maturities of investments | 3,550 | 7,770 | 5,053 |
Other – net | 0 | (4) | (891) |
Net cash flows from (to) investing activities | (112,875) | (154,210) | (75,419) |
Net Cash Flows From (To) Financing Activities: | |||
Purchase of HNI Corporation common stock | (26,657) | (67,908) | (27,488) |
Withholding related to net share settlements of equity based awards | (171) | (79) | (1,598) |
Proceeds from note and long-term debt | 448,449 | 282,808 | 157,967 |
Payments of note and long-term debt and other financing | (455,222) | (235,595) | (163,524) |
Proceeds from sale of HNI Corporation common stock | 12,276 | 18,469 | 9,591 |
Excess tax benefits from stock compensation | 1,581 | 2,161 | 2,211 |
Dividends paid | (46,329) | (44,328) | (43,494) |
Net cash flows from (to) financing activities | (66,073) | (44,472) | (66,335) |
Net increase (decrease) in cash and cash equivalents | (5,596) | (30,886) | 23,248 |
Cash and cash equivalents at beginning of year | 34,144 | 65,030 | 41,782 |
Cash and cash equivalents at end of year | $ 28,548 | $ 34,144 | $ 65,030 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Jan. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations HNI Corporation with its subsidiaries (the “Corporation”) is a provider of office furniture and hearth products. Both industries are reportable segments; however, the Corporation’s office furniture business is its principal line of business. Refer to Reportable Segment Information for further information. Office furniture products include panel-based and freestanding furniture systems and complementary products such as seating, storage and tables. These products are sold primarily through a national system of dealers, wholesalers and office product distributors but also directly to end-user customers and federal, state and local governments. Hearth products include a full array of gas, wood and pellet burning fireplaces, inserts, stoves, facings and accessories. These products are sold through a national system of dealers and distributors, as well as Corporation-owned distribution and retail outlets. The Corporation’s products are marketed predominantly in the United States and Canada. The Corporation exports select products to a limited number of markets outside North America, principally the Middle East, Mexico, Latin America and the Caribbean, through its export subsidiary and manufactures and markets office furniture in Asia and India; however, based on sales, these activities are not significant. Fiscal year-end – The Corporation follows a 52/53 -week fiscal year which ends on the Saturday nearest December 31. Fiscal year 2015 ended on January 2, 2016 ; 2014 ended on January 3, 2015 ; and 2013 ended on December 28, 2013 . The financial statements for fiscal year 2014 are on a 53-week basis. The financial statements for fiscal years 2015 and 2013 are on a 52-week basis. A 53-week year occurs approximately every sixth year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Cash, Cash Equivalents and Investments Cash and cash equivalents generally consist of cash and money market accounts. The fair value approximates the carrying value due to the short duration of the securities. These securities have original maturity dates not exceeding three months. The Corporation has short-term investments with maturities of less than one year and also has investments with maturities greater than one year included in Other Assets on the Consolidated Balance Sheets. Management classifies investments in marketable securities at the time of purchase and reevaluates such classification at each balance sheet date. Debt securities including government and corporate bonds are classified as available-for-sale and stated at current market value with unrealized gains and losses included as a separate component of equity, net of any related tax effect. The specific identification method is used to determine realized gains and losses on the trade date. At January 2, 2016 and January 3, 2015 , cash, cash equivalents and investments consisted of the following: Year-End 2015 (In thousands) Cash and cash equivalents Short-term investments Long-term investments Held-to-maturity securities Certificates of deposit $ — $ 252 $ — Available-for-sale securities Debt securities — 4,000 8,067 Cash and money market accounts 28,548 — — Total $ 28,548 $ 4,252 $ 8,067 The amortized cost basis of the debt securities as of January 2, 2016 was $12.1 million . Immaterial unrealized gains are recorded in accumulated other comprehensive income as of January 2, 2016 for these debt securities. Year-End 2014 (In thousands) Cash and cash equivalents Short-term investments Long-term investments Held-to-maturity securities Certificates of deposit $ — $ 252 $ — Available-for-sale securities Debt securities — 2,800 9,240 Cash and money market accounts 34,144 — — Total $ 34,144 $ 3,052 $ 9,240 The amortized cost basis of the debt securities as of January 3, 2015 was $12.0 million . Unrealized gains of $0.1 million and unrealized losses of $0.0 million are recorded in accumulated other comprehensive income as of January 3, 2015 for these debt securities. Receivables Accounts receivable are presented net of allowance for doubtful accounts of $4.3 million and $5.1 million for 2015 and 2014 , respectively. The allowance is developed based on several factors including overall customer credit quality, historical write-off experience, and specific account analyses projecting the ultimate collectability of the account. As such, these factors may change over time causing the reserve level to adjust accordingly. Allowance for doubtful accounts Balance at beginning of period Charged to costs and expenses Amounts written off, net of recoveries and other adjustments Balance at end of period Year ended January 2, 2016 5,096 1,394 2,203 4,287 Year ended January 3, 2015 6,208 343 1,455 5,096 Year ended December 28, 2013 5,151 2,590 1,533 6,208 Inventories The Corporation valued 78 percent and 71 percent of its inventory by the LIFO method at January 2, 2016 and January 3, 2015 , respectively. During 2014 and 2013, inventory quantities were reduced at certain reporting units. This reduction resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the cost of current year purchases, the effect of which decreased cost of goods sold by approximately $0.03 million and $0.2 million in 2014 and 2013, respectively. If the FIFO method had been in use, inventories would have been $25.1 million and $28.0 million higher than reported at January 2, 2016 and January 3, 2015 , respectively. Property, Plant and Equipment Property, plant and equipment are carried at cost. Expenditures for repairs and maintenance are expensed as incurred. Major improvements that materially extend the useful lives of the assets are capitalized. Depreciation has been computed using the straight-line method over estimated useful lives: land improvements, 10 – 20 years; buildings, 10 – 40 years; and machinery and equipment, 3 – 12 years. Long-Lived Assets Long-lived assets are reviewed for impairment as events or changes in circumstances occur indicating the amount of the asset reflected in the Corporation’s balance sheet may not be recoverable. An estimate of undiscounted cash flows produced by the asset, or the appropriate group of assets, is compared to the carrying value to determine whether impairment exists. The estimates of future cash flows involve considerable management judgment and are based upon assumptions about expected future operating performance. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. Asset impairment charges recorded in connection with the Corporation’s restructuring activities are discussed in Restructuring Related Charges. These assets included real estate, manufacturing equipment and certain other fixed assets. The Corporation’s continuous focus on improving the manufacturing process tends to increase the likelihood of assets being replaced; therefore, the Corporation is regularly evaluating the expected lives of its equipment and accelerating depreciation where appropriate. Goodwill and Other Intangible Assets See Goodwill and Other Intangible Assets note to consolidated financial statements. Product Warranties The Corporation issues certain warranty policies on its furniture and hearth products that provide for repair or replacement of any covered product or component failing during normal use because of a defect in design, materials 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 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: (In thousands) 2015 2014 2013 Balance at the beginning of the period $ 16,719 $ 13,840 $ 13,055 Accrual assumed from acquisition — 1,100 — Accruals for warranties issued during the period 19,995 18,951 21,878 Accrual(Recovery) related to pre-existing warranties (334 ) 172 106 Settlements made during the period (20,153 ) (17,344 ) (21,199 ) Balance at the end of the period $ 16,227 $ 16,719 $ 13,840 The portion of the reserve for estimated settlements expected to be paid in the next twelve months was $8.2 million and $8.5 million as of January 2, 2016 and January 3, 2015 , respectively, and is included in "Accounts payable and accrued expenses" in the Consolidated Balance Sheets. The portion of the reserve for settlements expected to be paid beyond one year was $8.0 million and $8.2 million , as of January 2, 2016 and January 3, 2015 , respectively, and are included in "Other Long-Term Liabilities" in the Consolidated Balance Sheets. Revenue Recognition Sales of office furniture and hearth products are generally recognized when title transfers and the risks and rewards of ownership have passed to customers. Typically title and risk of ownership transfer when the product is shipped. In certain circumstances, title and risk of ownership do not transfer until the goods are received by the customer or upon installation and customer acceptance. Revenue includes freight charged to customers; related costs are recorded in selling and administrative expense. Rebates, discounts and other marketing program expenses directly related to the sale are recorded as a reduction to net sales. Marketing program accruals require the use of management estimates and the consideration of contractual arrangements subject to interpretation. Customer sales that achieve or do not achieve certain award levels can affect the amount of such estimates and actual results could differ from these estimates. Product Development Costs Product development costs relating to development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. These costs include salaries, contractor fees, building costs, utilities and administrative fees. The amounts charged against income were $31.1 million in 2015 , $29.7 million in 2014 and $27.3 million in 2013 and were recorded in "Selling and Administrative Expenses" on the Consolidated Statements of Income. Freight Expense The Corporation records freight expense on shipments to customers in "Selling and Administrative Expenses" on the Consolidated Statements of Income. Amounts recorded were $133.4 million in 2015 , $131.0 million in 2014 and $123.8 million in 2013 . Stock-Based Compensation The Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes cost over the requisite service period. See the Stock-Based Compensation note to consolidated financial statements for further information. Income Taxes The Corporation uses an asset and liability approach that takes into account guidance related to uncertain tax positions and requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred income taxes are provided to reflect differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. The Corporation provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings it considers to be permanently reinvested. There were approximately $33.9 million of accumulated earnings considered permanently reinvested in China, Hong Kong and India as of January 2, 2016 . The Corporation believes the U.S. tax cost on unremitted foreign earnings would be approximately $10.3 million if the amounts were not considered permanently reinvested. See the Income Tax note to consolidated financial statements for further information. Earnings Per Share Basic earnings per share are based on the weighted-average number of common shares outstanding during the year. Shares potentially issuable under stock options, restricted stock units and common stock equivalents under the Corporation's deferred compensation plans have been considered outstanding for purposes of the diluted earnings per share calculation. The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share (EPS): (In thousands, except per share data) 2015 2014 2013 Numerators: Numerators for both basic and diluted EPS net income attributable to parent company $ 105,436 $ 61,471 $ 63,683 Denominators: Denominator for basic EPS weighted- average common shares outstanding 44,285 44,760 45,251 Potentially dilutive shares from stock option plans 1,156 819 706 Denominator for diluted EPS 45,441 45,579 45,956 Earnings per share – basic $ 2.38 $ 1.37 $ 1.41 Earnings per share – diluted $ 2.32 $ 1.35 $ 1.39 Certain exercisable and non-exercisable stock options were not included in the computation of diluted EPS for fiscal years 2015 , 2014 and 2013 because inclusion would have been anti-dilutive. The number of stock options outstanding which met this criterion was 493,202 ; 500,058 and 769,394 for 2015 , 2014 and 2013 , respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The more significant areas requiring use of management estimates relate to allowance for doubtful accounts, inventory reserves, marketing program accruals, warranty accruals, accruals for self-insured medical claims, workers’ compensation, legal contingencies, general liability and auto insurance claims, valuation of long-lived assets, and useful lives for depreciation and amortization. Actual results could differ from those estimates. Self-Insurance The Corporation is primarily self-insured for general, auto and product liability, workers’ compensation, and certain employee health benefits. The general, auto, product and workers’ compensation liabilities are managed using a wholly owned insurance captive and the related liabilities are included in the accompanying consolidated financial statements. As of January 2, 2016 , these liabilities totaled $27.7 million . The Corporation’s policy is to accrue amounts in accordance with the actuarially determined liabilities. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost inflation and magnitude of change in actual experience development could cause these estimates to change in the future. Foreign Currency Translations Foreign currency financial statements of foreign operations where the local currency is the functional currency are translated using exchange rates in effect at period end for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component of Shareholders’ Equity. Gains and losses on foreign currency transactions are included in the “Selling and administrative expenses” caption of the Consolidated Statements of Income. Reclassifications Certain reclassifications have been made within the financial statements to conform to the current year presentation. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The new guidance has been adopted on a prospective basis by the Company for the fiscal year ended January 2, 2016. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 12 Months Ended |
Jan. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Related and Impairment Charges | Restructuring and Impairment Charges As a result of the Corporation's ongoing business simplification and cost reduction strategies, the Corporation made the decision to exit a line of business within our hearth products segment during 2015. The Corporation incurred $0.9 million of restructuring charges as the result of this decision of which $0.8 million were included in Cost of Sales. During 2014, the Corporation made decisions to close three office furniture manufacturing facilities located in Florence, Alabama, Chicago, Illinois and Nalagarh, India and consolidate production into existing office furniture manufacturing facilities. In connection with these decisions, the Corporation recorded $8.8 million of pre-tax charges in 2014, which included $5.2 million of accelerated depreciation on machinery and equipment recorded in cost of sales and $3.6 million of severance and facility exit costs which were recorded as restructuring charges during the year. During 2015 the Corporation incurred $0.4 million of pre-tax restructuring charges related to these closures in the form of facility exit costs partially offset by lower than anticipated post employment costs. During 2010, the Corporation completed the shutdown of an office furniture facility in South Gate, California and consolidated production into existing office furniture manufacturing facilities. During 2013, the Corporation incurred $0.3 million of restructuring charges due to ongoing costs related to a vacant building from this closure. The following table summarizes the restructuring accrual activity since the beginning of fiscal 2013 . (In thousands) Severance Costs Facility Termination & Other Costs Total Restructuring reserve at December 29, 2012 $ 192 $ 18 $ 210 Restructuring charges (8 ) 341 333 Cash payments (135 ) (353 ) (488 ) Restructuring reserve At December 28, 2013 $ 49 $ 6 $ 55 Restructuring charges 2,933 705 3,638 Cash payments (1,769 ) (711 ) (2,480 ) Restructuring reserve At January 3, 2015 $ 1,213 $ — $ 1,213 Restructuring charges (706 ) 1,255 549 Cash Payments (257 ) (1,240 ) (1,497 ) Restructuring reserve At January 2, 2016 $ 250 $ 15 $ 265 The Corporation recorded $11.2 million of goodwill and long-lived asset impairments in 2015 included in the “Restructuring and Impairment Charges” line item on the Consolidated Statements of Income. See Goodwill and Other Intangible Assets note to consolidated financial statements for more information. |
Business Combinations
Business Combinations | 12 Months Ended |
Jan. 02, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations The Corporation completed the acquisition of Vermont Casting Group, a leading manufacturer of free-standing hearth stoves and fireplaces, on October 1, 2014 for a purchase price of $62.2 million in an all cash transaction. There were $24.9 million of intangible assets other than goodwill associated with this acquisition with estimated useful lives ranging from five to fifteen years with amortization recorded on a straight line basis based on the projected cash flow associated with the respective intangible assets’ existing relationships. There was $17.0 million of goodwill associated with this acquisition assigned to the hearth products segment. The goodwill is not deductible for income tax purposes. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 02, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The Corporation's cash payments for interest and income taxes and non-cash investing and financing activities are as follows: (In thousands) 2015 2014 2013 Cash paid for: Interest paid (net of capitalized interest) $ 7,066 $ 8,301 $ 9,909 Income taxes paid 28,252 36,637 9,576 Changes in accrued expenses due to: Purchases of property and equipment (327 ) 3,873 3,769 Purchases of capitalized software (2,806 ) 2,183 1,114 |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) 2015 2014 Finished products $ 68,478 $ 65,126 Materials and work in process 81,860 84,677 LIFO reserve (25,110 ) (28,012 ) $ 125,228 $ 121,791 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant, and Equipment | Property, Plant, and Equipment (In thousands) 2015 2014 Land and land improvements $ 28,801 $ 27,329 Buildings 298,516 298,170 Machinery and equipment 515,131 492,646 Construction and equipment installation in progress 31,986 27,704 874,434 845,849 Less: accumulated depreciation 533,275 534,841 $ 341,159 $ 311,008 Total depreciation expense was $46.5 million , $46.1 million and $36.3 million in 2015 , 2014 and 2013 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As a result of the required annual impairment assessment performed in the fourth quarter of 2015 , the Corporation determined the fair value of a recently acquired reporting unit within the office furniture segment was below its carrying value. The decline in the estimated fair value of this reporting unit was largely driven by lower than expected operating performance in 2015. The projections used in the impairment model reflected management's assumptions regarding revenue growth rates, economic and market trends, cost structure, investments required for sales force and operational transformation and other expectations about the anticipated short-term and long-term operating results of the reporting unit. Based on the two-step analysis, the Corporation recorded a $3.0 million goodwill impairment charge in 2015 , and there was no remaining net goodwill in the reporting unit as of January 2, 2016 . Additionally and prior to the goodwill impairment assessment, the Corporation tested the recoverability of the long-lived assets in that reporting unit, other than goodwill, which included definite-lived intangible assets consisting of customer lists and trade names, and recorded an impairment charge of $8.3 million . Based on the results of the annual impairment tests, the Corporation concluded that no other goodwill impairment existed apart from the impairment charges discussed above. For all other reporting units included in the annual two-step impairment test except the two noted below, the estimated fair value is significantly in excess of carrying value. For one of the office furniture reporting units that exceeded its carrying value by approximately 12.9 percent , the Corporation assumed a discount rate of 13.0 percent , near term growth rates ranging from 3.5 percent to 7.5 percent and a terminal growth rate of 3.0 percent . The fair value model assumes continued positive economic momentum and transformation of the reporting unit including sales and marketing initiatives, new product development and operational processes. Holding other assumptions constant a 100 basis point increase in the discount rate would result in a $5.0 million decrease in the estimated fair value of the reporting unit and a 100 basis point decrease in the long-term growth rate would result in a $2.0 million decrease in the estimated fair value of the reporting unit. Neither of these scenarios individually would result in the reporting unit failing step one. For the other office furniture reporting unit that exceeded its carrying value by approximately 17.8 percent , the Corporation assumed a discount rate of 15.0 percent , near term growth rates ranging from negative 10.7 percent to positive 8.0 percent and a terminal growth rate of 4.0 percent . The fair value model assumes continued positive economic momentum and transformation of the reporting unit including sales and marketing initiatives, new product development and operational processes. Holding other assumptions constant a 100 basis point increase in the discount rate would result in a $5.0 million decrease in the estimated fair value of the reporting unit and a 100 basis point decrease in the long-term growth rate would result in a $2.5 million decrease in the estimated fair value of the reporting unit. Neither of these scenarios individually would result in the reporting unit failing step one. The Corporation also owns certain trademarks and trade names having a carrying value of $41.0 million as of January 2, 2016 , $41.0 million as of January 3, 2015 , and $41.0 million as of December 28, 2013 . These trademarks and trade names are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. As a result of the review performed in the fourth quarter of 2015 , the Corporation determined the fair value of all trade names exceeded the respective carrying value and, therefore no impairment was recorded. One trade name within the office furniture segment had a minimal amount of headroom on its valuation. This trade name exceeded its carrying value by approximately $1.0 million and had a carrying value of $11.2 million . For this trade name the Corporation assumed a discount rate of 12.0 percent , terminal growth rate of 3.0 percent and a royalty rate of 2.5 percent . Holding other assumptions constant, a nominal change in the discount rate or royalty rate could trigger an impairment. The table below summarizes amortizable definite-lived intangible assets, which are reflected in Other Assets in the Corporation’s Consolidated Balance Sheets: January 2, 2016 January 3, 2015 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 18,645 $ 18,615 $ 30 $ 18,945 $ 18,724 $ 221 Software 122,892 21,193 101,699 93,343 17,711 75,632 Trademarks and trade names 6,564 753 5,811 11,424 1,724 9,700 Customer lists and other 105,586 60,063 45,523 113,671 58,019 55,652 Net definite lived intangible assets $ 253,687 $ 100,624 $ 153,063 $ 237,383 $ 96,178 $ 141,205 The Corporation recorded an impairment charge of $8.3 million to adjust the customer list and trade names associated with a small office furniture reporting unit to fair market value as discussed above. Amortization expense for capitalized software for 2015 , 2014 and 2013 , was $3.5 million , $3.3 million and $2.9 million , respectively. Amortization expense for all other definite-lived intangibles for 2015 , 2014 and 2013 , was $7.6 million , $7.2 million and $7.4 million , respectively. All amortization expense was recorded in Selling and Administrative Expenses on the Consolidated Statements of Income. 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) 2016 2017 2018 2019 2020 Amortization expense $ 11.6 $ 17.6 $ 17.8 $ 17.1 $ 16.5 The occurrence of events such as acquisitions, dispositions or impairments in the future may result in changes to amounts. The changes in the carrying amount of goodwill since December 28, 2013 , are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total 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 during the year — 15,713 15,713 Impairment losses (22,802 ) — (22,802 ) Foreign currency translation adjustment (256 ) — (256 ) Balance as of January 3, 2015 Goodwill 149,713 181,901 331,614 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) 97,552 181,758 279,310 Impairment losses (2,963 ) — (2,963 ) Final purchase price allocations/contingent payments from prior year acquisitions — 1,298 1,298 Foreign currency translation adjustment 5 — 5 Balance as of January 2, 2016 Goodwill 149,718 183,199 332,917 Accumulated impairment losses (55,124 ) (143 ) (55,267 ) 94,594 183,056 277,650 The goodwill increases relate to acquisitions completed. See the Business Combinations note. The decreases in goodwill in the office furniture segment in 2014 and 2015 were due to the impairment charges described above. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Jan. 02, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses (In thousands) 2015 2014 Trade accounts payable $ 197,579 $ 224,026 Compensation 43,380 46,619 Profit sharing and retirement expense 29,089 27,956 Marketing expenses 35,969 39,175 Freight 16,384 15,531 Other accrued expenses 102,004 100,447 $ 424,405 $ 453,754 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt (In thousands) 2015 2014 Note payable to bank, revolving credit facility with interest at a variable rate (2015 - 1.5%; 2014 - 1.8%) $ 40,300 $ 47,700 Senior notes due April 2016 with interest at a fixed rate of 5.54% per annum. 150,000 150,000 Other notes and amounts 177 91 Total debt 190,477 197,791 Less: current portion 5,477 55 Long-term debt $ 185,000 $ 197,736 Aggregate maturities of long-term debt are as follows: (In thousands) 2016 $ 5,477 2017 35,000 2018 — 2019 — 2020 — Thereafter 150,000 The carrying value of the Corporation's outstanding variable-rate, long-term debt obligations at January 2, 2016 and January 3, 2015 was $40 million and $48 million , respectively, which approximated fair value. The fair value of the Corporation’s outstanding fixed rate long-term debt obligations was estimated based on discounted cash flow method (Level 2) to be $148 million at January 2, 2016 and $154 million at January 3, 2015 compared to the carrying value of $150 million . The Corporation increased the borrowing capacity (while preserving the existing $150 million accordian feature) under the revolving credit facility on January 6, 2016 to $400 million and will use the additional borrowings to pay off the Corporation's Senior Notes due April 6, 2016. These Senior Notes were classified as long term as of January 2, 2016 since the Corporation will pay off the Senior Notes upon maturity with revolving credit facility borrowings expected to remain outstanding for more than twelve months. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of the provision for income taxes including those related to noncontrolling interest and discontinued operations are as follows: (In thousands) 2015 2014 2013 Current: Federal $ 27,768 $ 22,738 $ 12,077 State 5,258 4,623 1,036 Foreign 1,713 972 2,153 Current provision 34,739 28,333 15,266 Deferred: Federal 15,348 13,692 16,614 State 2,217 2,013 2,558 Foreign (540 ) (262 ) (1,100 ) Deferred provision 17,025 15,443 18,072 $ 51,764 $ 43,776 $ 33,338 The differences between the actual tax expense and tax expense computed at the statutory U.S. Federal tax rate are explained as follows: 2015 2014 2013 Federal statutory tax expense $ 55,020 $ 36,836 $ 33,957 State taxes, net of federal tax effect 4,269 4,118 2,469 Credit for increasing research activities (3,320 ) (2,569 ) (1,338 ) Deduction related to domestic production activities (3,320 ) (1,751 ) (1,396 ) Valuation allowance — 2,474 — Goodwill Impairment — 4,298 — Change in uncertain tax positions (1,344 ) 1,099 773 Other – net 459 (729 ) (1,127 ) Total income tax expense $ 51,764 $ 43,776 $ 33,338 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Corporation’s deferred tax liabilities and assets are as follows: (In thousands) 2015 2014 Deferred Taxes Allowance for doubtful accounts $ 1,089 $ 1,240 Compensation 15,491 16,817 Inventory differences 4,497 5,691 Marketing accrual 1,355 1,454 Stock-based compensation 11,923 9,906 Accrued post-retirement benefit obligations 6,682 6,341 OCI tax effected items 3,169 3,887 Vacation accrual 4,181 3,875 Warranty Accrual 6,052 6,023 Other – net 12,167 10,774 Total deferred tax assets $ 66,606 $ 66,008 Deferred income (4,907 ) (4,836 ) Goodwill (79,471 ) (80,366 ) Prepaids (7,876 ) (7,724 ) Tax over book depreciation (59,308 ) (41,770 ) Total deferred tax liabilities $ (151,562 ) $ (134,696 ) Valuation allowance (3,978 ) (3,413 ) Total net deferred tax liabilities $ (88,934 ) $ (72,101 ) Current net deferred tax assets — 17,310 Long term net deferred tax liabilities (88,934 ) (89,411 ) Total net deferred tax liabilities $ (88,934 ) $ (72,101 ) The valuation allowance for deferred tax assets is as follows: Valuation allowance for deferred tax asset (in thousands) Balance at beginning of period Charged to expenses Adjustments to balance sheet Balance at end of period Year ended January 2, 2016 3,413 — 565 3,978 Year ended January 3, 2015 1,579 2,474 (640 ) 3,413 Year ended December 28, 2013 1,580 — (1 ) 1,579 At January 2, 2016 , the Corporation has approximately $6.4 million of U.S. state tax net operating losses and $2.2 million of U.S. state tax credits which expire over the next twenty years. The Corporation has adopted ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes on a prospective basis for the fiscal year ended January 2, 2016. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) 2015 2014 Unrecognized tax benefits, beginning of period $ 4,250 $ 2,809 Increases in positions due to purchase accounting — 400 Increases in positions taken in a prior period 82 406 Decreases in positions taken in a prior period (1,611 ) (124 ) New positions taken in a current period 793 1,422 Decrease due to settlements — — Decrease due to lapse of statute of limitations (656 ) (663 ) Unrecognized tax benefits, end of period $ 2,858 $ 4,250 The amount of unrecognized tax benefits which would impact the Corporation’s effective tax rate, if recognized, was $2.8 million at January 2, 2016 and $4.2 million at January 3, 2015 . As of January 2, 2016 , it is reasonably possible the amount of unrecognized tax benefits may increase or decrease within the twelve months following the reporting date. These increases or decreases in the unrecognized tax benefits would be due to new positions that may be taken on income tax returns, settlement of tax positions and the closing of statutes of limitation. It is not expected any of the changes will be material individually or in total to the results or financial position of the Corporation. The Corporation recognized interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses consistent with the recognition of these items in prior reporting. Interest and penalties recognized in the Consolidated Statements of Income amounted to a benefit of $0.1 million , $0.0 million and $0.1 million in January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. The Corporation had recorded a liability for interest and penalties related to unrecognized tax benefits of $0.1 million and $0.2 million as of January 2, 2016 and January 3, 2015 , respectively. Tax years 2012 through 2015 remain open for examination by the Internal Revenue Service ("IRS"). The Corporation is currently under examination in various state jurisdictions, of which years 2009 through 2014 remain open to examination. Deferred income taxes are provided to reflect differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Corporation provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings it considers to be permanently reinvested. There were approximately $33.9 million of accumulated earnings considered permanently reinvested in Canada, China, and Hong Kong as of January 2, 2016 . The Corporation believes the U.S tax cost on unremitted foreign earnings would be approximately $10.3 million if the amounts were not considered permanently reinvested. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 12 Months Ended |
Jan. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Instruments | Fair Value Measurements of Financial Instruments For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities. The marketable securities are comprised of investments in 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. In some cases 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 for the year ended January 2, 2016 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 $ 9,663 $ — $ 9,663 $ — Corporate bonds $ 2,405 $ — $ 2,405 $ — Derivative financial instruments $ (1,252 ) $ — $ (1,252 ) $ — Assets measured at fair value for the year ended 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 ) $ — |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity 2015 2014 Common Stock, $1 Par Value Authorized 200,000,000 200,000,000 Issued and outstanding 44,158,256 44,165,676 Preferred Stock, $1 Par Value Authorized 2,000,000 2,000,000 Issued and outstanding — — The Corporation purchased 550,000 , 1,665,850 , and 740,000 shares of its common stock during 2015 , 2014 and 2013 , respectively. The par value method of accounting is used for common stock repurchases. The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income loss: (in thousands) Foreign Currency Translation Adjustment Unrealized Gains Losses) on Marketable Securities Pension Postretirement Liability Derivative Financial Instruments Accumulated Other Comprehensive Loss Balance at December 29, 2012 $ 5,475 $ 205 $ (4,291 ) $ (76 ) $ 1,313 Other comprehensive income before reclassifications (2,562 ) (191 ) 3,389 538 1,174 Less: Taxes — (67 ) 1,312 197 1,442 Amounts reclassified from accumulated other comprehensive income, net of tax — — 74 (154 ) (80 ) Balance at December 28, 2013 2,913 81 (2,140 ) 111 965 Other comprehensive income before reclassifications (690 ) (67 ) (7,280 ) (1,728 ) (9,765 ) Less: Taxes — (23 ) (2,657 ) (631 ) (3,311 ) Amounts reclassified from accumulated other comprehensive income, net of tax — — — 114 114 Balance at January 3, 2015 2,223 37 (6,763 ) (872 ) (5,375 ) Other comprehensive income before reclassifications (1,901 ) (60 ) 1,975 (1,188 ) (1,174 ) Less: Taxes — (21 ) 718 (433 ) 264 Amounts reclassified from accumulated other comprehensive income, net of tax — — — 1,627 1,627 Balance at January 2, 2016 $ 322 $ (2 ) $ (5,506 ) $ — $ (5,186 ) The following table details the reclassifications from accumulated other comprehensive income (loss) for the years ended January 3, 2015 and January 2, 2016 (in thousands): Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Statement Where Net Income is Presented 2015 2014 Derivative financial instruments Diesel hedge Selling and administrative expenses $ (2,562 ) $ (180 ) Tax (expense) or benefit 935 66 Net of tax $ (1,627 ) $ (114 ) The Corporation determined in fourth quarter 2015 that the qualifications for hedge accounting treatment on the diesel hedge derivative financial instruments were not met and reversed $1.3 million recorded in accumulated other comprehensive income as a reduction to net income. In May 2007, the Corporation registered 300,000 shares of its common stock under its 2007 Equity Plan for Non-Employee Directors of HNI Corporation, as amended (the “Director Plan”). The Director Plan permits the Corporation to issue to its non-employee directors options to purchase shares of Corporation common stock, restricted stock or restricted stock units of the Corporation and awards of Corporation common stock. The Director Plan also permits non-employee directors to elect to receive all or a portion of their annual retainers and other compensation in the form of shares of Corporation common stock. During 2015 , 2014 , and 2013 , 20,146 ; 27,272 ; and 26,520 shares, respectively, of Corporation common stock were issued under the Director Plan. Cash dividends declared and paid per share for each year are: (In dollars) 2015 2014 2013 Common shares $ 1.045 $ 0.99 $ 0.96 During 2007, shareholders approved the 2002 Members’ Stock Purchase Plan (the "Purchase Plan"), as amended January 1, 2007. Under the plan, 800,000 shares of common stock were initially registered for issuance to participating members. On June 12, 2009, an additional 1,000,000 shares of common stock were registered for issuance to participating members. Beginning on June 30, 2002, rights to purchase stock are granted on a quarterly basis to all participating members who customarily work 20 hours or more per week and for five months or more in any calendar year. The price of the stock purchased under the Purchase Plan is 85% of the closing price on the exercise date. No member may purchase stock under the Purchase Plan in an amount which exceeds a maximum fair value of $25,000 in any calendar year. During 2015 , 73,874 shares of common stock were issued under the Purchase Plan at an average price of $32.18 . During 2014 , 84,065 shares of common stock were issued under the plan at an average price of $27.92 . During 2013 , 86,291 shares of common stock were issued under the Purchase Plan at an average price of $25.63 . An additional 373,268 shares were available for issuance under the Purchase Plan at January 2, 2016 . The Corporation has entered into change in control employment agreements with certain officers. According to the agreements, a change in control occurs when a third person or entity becomes the beneficial owner of 20% or more of the Corporation’s common stock, when more than one-third of the Board is composed of persons not recommended by at least three-fourths of the incumbent Board, upon certain business combinations involving the Corporation or upon approval by the Corporation’s shareholders of a complete liquidation or dissolution. Upon a change in control, a key member is deemed to have a two year employment agreement with the Corporation, and all of his or her benefits vest under the Corporation’s compensation plans. If, at any time within two years of the change in control, his or her employment is terminated by the Corporation for any reason other than cause or disability, or by the key member for good reason, as such terms are defined in the agreement, then the key member is entitled to receive, among other benefits, a severance payment equal to two times ( three times for the Corporation’s Chairman, President and CEO) annual salary and the average of the prior two years’ bonuses. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Stock-Based Compensation Under the Corporation’s 2007 Stock-Based Compensation Plan (the “Plan”), effective May 8, 2007, as amended, the Corporation may award options to purchase shares of the Corporation’s common stock and grant other stock awards to executives, managers and key personnel. Upon shareholder approval of the Plan in May 2007, no future awards were granted under the Corporation’s 1995 Stock-Based Compensation Plan, but all outstanding awards previously granted under that plan shall remain outstanding in accordance with their terms. As of January 2, 2016 , there were approximately 3.7 million shares available for future issuance under the Plan. The Plan is administered by the Human Resources and Compensation Committee of the Board. Restricted stock units awarded under the Plan are expensed ratably over the vesting period of the awards. Stock options awarded to members under the Plan must be at exercise prices equal to or exceeding the fair market value of the Corporation’s common stock on the date of grant. Stock options are generally subject to four -year cliff vesting and must be exercised within 10 years from the date of grant. The Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes cost over the requisite service period. Compensation cost charged against operations for the Plan and Purchase Plan described in Note 13 of the consolidated financial statements was $9.1 million , $8.6 million and $7.5 million for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $3.1 million , $3.1 million and $2.6 million for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , respectively. The stock compensation expense for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions by grant year: Year Ended Jan, 2, 2016 Year Ended Jan, 3, 2015 Year Ended Dec. 28, 2013 Expected term 6 years 5 years 5 years Expected volatility: Weighted-average 43.54 % 42.49 % 50.39 % Expected dividend yield: Weighted-average 1.94 % 2.76 % 3.02 % Risk-free interest rate: Range used 1.69 % 1.54 % 0.93 % Expected volatilities were based on historical volatility as the Corporation does not feel that future volatility over the expected term of the options is likely to differ from the past. The Corporation used a calculation method based on daily frequency for the prior six years for 2015 and a simple-average calculation method based on monthly frequency points for the prior five years for 2014 and 2013. The Corporation used the current dividend yield in all years as there are no plans to substantially increase or decrease its dividends. The Corporation used historical exercise experience in all years to determine the expected term. The risk-free interest rate was selected based on yields from treasury securities as published by the Federal Reserve equal to the expected term of the options being valued for 2015 and yields from U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the options being valued for 2014 and 2013. The following table summarizes the changes in outstanding stock options since the beginning of fiscal 2013 . Number of Shares Weighted-Average Exercise Price Outstanding at December 29, 2012 3,456,514 $ 27.96 Granted 611,599 31.79 Exercised (394,476 ) 14.86 Forfeited or Expired (43,070 ) 35.05 Outstanding at December 28, 2013 3,630,567 $ 29.94 Granted 536,275 34.78 Exercised (542,837 ) 28.53 Forfeited or Expired (288,560 ) 38.55 Outstanding at January 3, 2015 3,335,445 $ 29.93 Granted 350,038 51.54 Exercised (302,635 ) 30.22 Forfeited or Expired (24,525 ) 39.14 Outstanding at January 2, 2016 3,358,323 $ 32.09 A summary of the Corporation’s nonvested stock options as of January 2, 2016 and changes during the year are presented below: Nonvested Stock Options Shares Weighted-Average Grant-Date Fair Value Nonvested at January 3, 2015 2,286,997 $ 10.14 Granted 350,038 22.66 Vested (480,585 ) 11.56 Forfeited (17,726 ) 11.63 Nonvested at January 2, 2016 2,138,724 $ 11.86 At January 2, 2016 , there was $3.3 million of unrecognized compensation cost related to nonvested stock option awards, which the Corporation expects to recognize over a weighted-average period of 1.2 years. Information about stock options expected to vest or currently exercisable at January 2, 2016 , is as follows: Options Number Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value ($000s) Expected to vest 2,084,026 $ 33.39 7.3 $ 13,155 Exercisable 1,219,599 $ 29.30 3.7 $ 13,078 The weighted-average grant-date fair value of options granted was $18.45 , $10.48 and $10.85 , for 2015 , 2014 and 2013 , respectively. Other information for the last three years is as follows: (In thousands) Jan. 2, 2016 Jan. 3, 2015 Dec. 28, 2013 Total fair value of shares vested $ 5,554 $ 5,735 $ 1,127 Total intrinsic value of options exercised 6,412 8,389 6,445 Cash received from exercise of stock options 9,145 15,489 5,862 Tax benefit realized from exercise of stock options 2,111 2,982 2,291 The Corporation has occasionally issued restricted stock units (“RSUs”) to executives, managers and key personnel. The RSUs vest at the end of three years after the grant date. No dividends are accrued on the RSUs. The share-based compensation expense associated with the RSUs is based on the quoted market price of HNI Corporation shares on the date of grant less the discounted present value of dividends not received on the shares and is amortized using the straight-line method from the grant date through the earlier of the vesting date or the estimated retirement eligibility date. The following table summarizes the changes in outstanding RSUs since the beginning of fiscal 2013: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at December 29, 2012 157,219 $ 21.71 Granted — — Vested (132,693 ) 21.47 Forfeited — — Outstanding at December 28, 2013 24,526 $ 23.01 Granted 15,500 32.23 Vested (14,000 ) 21.47 Forfeited — — Outstanding at January 3, 2015 26,026 $ 27.76 Granted 23,000 51.54 Vested (10,526 ) 21.19 Forfeited — — Outstanding at January 2, 2016 38,500 $ 43.77 At January 2, 2016 , there was $1.0 million of unrecognized compensation cost related to RSUs which the Corporation expects to recognize over a weighted-average period of 0.6 year. The total value of shares vested in 2015 , 2014 and 2013 was $0.2 million , $0.3 million and $2.8 million , respectively. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Jan. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits The Corporation has defined contribution profit-sharing plans covering substantially all employees who are not participants in certain defined benefit plans. The Corporation’s annual contribution to the defined contribution plans is based on employee eligible earnings and results of operations and amounted to $29.1 million , $26.8 million , and $23.3 million , in 2015 , 2014 , and 2013 , respectively. A portion of the annual contribution is in the form of common stock of the Corporation. The amount of the stock contribution was $6.8 million , $6.4 million , and $6.1 million in 2015 , 2014 , and 2013 , respectively. The Corporation sponsors a defined benefit plan which covers a limited number of former salaried and hourly members. The Corporation’s funding policy is generally to contribute annually the minimum actuarially computed amount. Net pension costs relating to these plans were $281,000 , $167,000 and $185,000 , in 2015 , 2014 and 2013 , respectively. The actuarial present value of obligations, less related plan assets at fair value, is not significant. |
Postretirement Health Care
Postretirement Health Care | 12 Months Ended |
Jan. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Postretirement Health Care | Postretirement Health Care Guidance on employers’ accounting for other postretirement plans requires recognition of the overfunded or underfunded status on the balance sheet. Under this guidance, gains and losses, prior services costs and credits and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end. (In thousands) 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 21,972 $ 16,448 Service cost 803 504 Interest cost 816 735 Benefits paid (1,009 ) (1,280 ) Actuarial (gain)/loss (1,698 ) 5,565 Benefit obligation at end of year $ 20,884 $ 21,972 Change in plan assets Fair value at beginning of year $ — $ — Actual return on assets — — Employer contribution 1,009 1,280 Transferred out — — Benefits paid (1,009 ) (1,280 ) Fair value at end of year $ — $ — Funded Status of Plan $ (20,884 ) $ (21,972 ) Amounts recognized in the Statement of Financial Position consist of: Current liabilities $ 1,014 $ 1,004 Noncurrent liabilities $ 19,870 $ 20,968 Amounts recognized in Accumulated Other Comprehensive Income (before tax) consist of: Actuarial (gain)/loss $ 2,730 $ 4,665 Transition (asset)/obligation — — Prior service cost — — $ 2,730 $ 4,665 Change in Accumulated Other Comprehensive Income (before tax): Amount disclosed at beginning of year $ 4,665 $ (900 ) Actuarial (gain)/loss (1,698 ) 5,565 Amortization of actuarial gain or loss — Amortization of transition amount (237 ) — Amortization of prior service cost — Amount disclosed at end of year $ 2,730 $ 4,665 Estimated Future Benefit Payments (In thousands) Fiscal 2016 $ 1,014 Fiscal 2017 1,020 Fiscal 2018 1,018 Fiscal 2019 1,042 Fiscal 2020 1,076 Fiscal 2021 – 2025 6,375 Expected Contributions During Fiscal 2016 Total $ 1,014 The discount rates at fiscal year-end 2015 , 2014 and 2013 , were 4.2% , 3.8% and 4.6% , respectively. The Corporation's payment for these benefits has reached the maximum amounts per the plan; therefore, healthcare trend rates have no impact on the Corporation’s cost. There were no funds designated as plan assets. Components of Net Periodic Postretirement Benefit Cost (in thousands) 2016 Service cost $ 735 Interest cost 846 Amortization of net (gain)/loss 62 Net periodic postretirement benefit cost/(income) $ 1,643 A discount rate of 4.2% was used to determine net periodic benefit cost for 2016 . The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments. There are no plan assets invested. |
Leases
Leases | 12 Months Ended |
Jan. 02, 2016 | |
Leases [Abstract] | |
Leases | Leases The Corporation leases certain warehouse and plant facilities and equipment. Commitments for minimum rentals under non-cancelable leases at the end of 2015 are as follows: (In thousands) Operating Leases 2016 $ 30,241 2017 23,640 2018 16,684 2019 11,422 2020 6,451 Thereafter 10,268 Total minimum lease payments $ 98,706 There are no capitalized leases at January 2, 2016 . The present value of net minimum capital lease payments at January 3, 2015 was $105 thousand , all of which was classified as current. Property, plant and equipment at year-end include the following amounts for capitalized leases: (In thousands) 2015 2014 Office equipment $ — $ 570 Less: allowances for depreciation — 460 $ — $ 110 Rent expense for the years 2015 , 2014 and 2013 , amounted to approximately $34.0 million , $48.0 million and $41.5 million , respectively. There was no contingent rent expense under either capitalized and operating leases (generally based on mileage of transportation equipment) for the years 2015 , 2014 , and 2013 . |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | Guarantees, Commitments and Contingencies The Corporation utilizes letters of credit in the amount of $10 million to back certain financing instruments, insurance policies and payment obligations. The letters of credit reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined. The Corporation is involved in various kinds of disputes and legal proceedings that have arisen in the course of its business, including pending litigation, environmental remediation, taxes and other claims. It is the Corporation’s opinion, after consultation with legal counsel, that additional liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation’s quarterly or annual operating results and cash flows when resolved in a future period. |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable 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 segment. The aggregated office furniture segment manufactures and markets a broad line of metal and wood commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems and other related products. The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, 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 costs 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 consolidated financial statements for the years ended 2015 , 2014 , and 2013 , is as follows for continuing operations: (In thousands) 2015 2014 2013 Net sales: Office furniture $ 1,777,804 $ 1,739,049 $ 1,685,205 Hearth products 526,615 483,646 374,759 $ 2,304,419 $ 2,222,695 $ 2,059,964 Operating profit: Office furniture (a) $ 136,593 $ 87,053 $ 97,339 Hearth products (b) 78,162 77,066 46,662 Total operating profit 214,755 164,119 144,001 Unallocated corporate expenses (57,585 ) (59,188 ) (47,294 ) Income (loss) before income taxes $ 157,170 $ 104,931 $ 96,707 Depreciation and amortization expense: Office furniture $ 42,415 $ 45,891 $ 36,992 Hearth products 8,430 5,415 5,288 General corporate 6,719 5,416 4,341 $ 57,564 $ 56,722 $ 46,621 Capital expenditures (including capitalized software): Office furniture $ 64,850 $ 62,696 $ 51,954 Hearth products 11,078 6,342 4,220 General corporate 39,038 43,675 22,721 $ 114,966 $ 112,713 $ 78,895 Identifiable assets: Office furniture $ 739,915 $ 724,293 $ 722,697 Hearth products 341,813 341,315 255,978 General corporate 182,197 173,726 156,030 $ 1,263,925 $ 1,239,334 $ 1,134,705 (a) Included in operating profit for the office furniture segment are pretax charges of $11.7 million , $33.0 million and $0.3 million , for closing of facilities and impairment charges in 2015 , 2014 and 2013 , respectively. (b) Included in operating profit for the hearth products segment are pretax charges of $0.9 million related to exiting a line of business in 2015. The Corporation's net sales by product category were as follows for the years ended 2015 , 2014 and 2013 : (in thousands) 2015 2014 2013 Systems and storage $ 1,140,369 $ 1,156,170 $ 1,132,885 Seating 561,392 498,389 469,220 Other 76,043 84,490 83,100 Hearth products 526,615 483,646 374,759 $ 2,304,419 $ 2,222,695 $ 2,059,964 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 29, 2016 the Corporation acquired a small office furniture distribution company with annual sales of approximately $27 million at a cost of approximately $34 million . On February 17, 2016 the Corporation approved the closure of its Paris, Kentucky hearth manufacturing facility as part of ongoing efforts to reduce structural costs and enhance efficiencies. The Corporation estimates the consolidation will save $9.0 million annually beginning in 2017. The Corporation estimates pre-tax charges of $8.9 million related to the closure and consolidation. |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (Unaudited) | Summary of Quarterly Results of Operations (Unaudited) The following table presents certain unaudited quarterly financial information for each of the past 8 quarters. In the opinion of the Corporation’s management, this information has been prepared on the same basis as the consolidated financial statements appearing elsewhere in this report and includes all adjustments (consisting only of normal recurring accruals) necessary to state fairly the financial results set forth herein. Results of operations for any previous quarter are not necessarily indicative of results for any future period. Year-End 2015: (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 523,477 $ 568,226 $ 615,850 $ 596,866 Cost of products sold 338,977 362,102 384,219 371,723 Gross profit 184,500 206,124 231,631 225,143 Selling and administrative expenses 168,704 167,278 170,371 165,772 (Gain) on sale of assets — — — (195 ) Restructuring related charges (income) 377 (560 ) 172 11,803 Operating income (loss) 15,419 39,406 61,088 47,763 Interest income (expense) – net (1,899 ) (1,849 ) (1,623 ) (1,135 ) Income (loss) before income taxes 13,520 37,557 59,465 46,628 Income taxes 5,068 13,680 18,619 14,397 Net income (loss) 8,452 23,877 40,846 32,231 Less: net income attributable to the noncontrolling interest (26 ) (2 ) (2 ) — Net income (loss) attributable to HNI Corporation $ 8,478 $ 23,879 $ 40,848 $ 32,231 Net income (loss) attributable to HNI Corporation per common share – basic $ 0.19 $ 0.54 $ 0.92 $ 0.73 Weighted-average common shares outstanding – basic 44,304 44,416 44,263 44,158 Net income (loss) attributable to HNI Corporation per common share – diluted $ 0.19 $ 0.52 $ 0.90 $ 0.71 Weighted-average common shares outstanding – diluted 45,524 45,621 45,403 45,199 As a Percentage of Net Sales Net sales 100.0 % 100.0 % 100.0 % 100.0 % Gross profit 35.2 36.3 37.6 37.7 Selling and administrative expenses 32.2 29.4 27.7 27.8 Restructuring related charges 0.1 (0.1 ) — 2.0 Operating income (loss) 2.9 6.9 9.9 8.0 Income taxes 1.0 2.4 3.0 2.4 Net income (loss) attributable to HNI Corporation 1.6 4.2 6.6 5.4 Year-End 2014: (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 452,201 $ 509,143 $ 614,690 $ 646,661 Cost of products sold 297,029 328,010 394,758 418,698 Gross profit 155,172 181,133 219,932 227,963 Selling and administrative expenses 145,210 155,288 166,216 182,341 (Gain) on sale of assets (8,400 ) (1,346 ) — (977 ) Restructuring related charges (28 ) 10,282 987 21,778 Operating income (loss) 18,390 16,909 52,729 24,821 Interest income (expense) – net (2,132 ) (2,041 ) (1,861 ) (1,884 ) Income (loss) before income taxes 16,258 14,868 50,868 22,937 Income taxes 5,242 5,203 17,372 15,959 Net income (loss) 11,016 9,665 33,496 6,978 Less: net income attributable to the noncontrolling interest (80 ) (40 ) (92 ) (104 ) Net income (loss) attributable to HNI Corporation $ 11,096 $ 9,705 $ 33,588 $ 7,082 Net income (loss) attributable to HNI Corporation per common share – basic $ 0.25 $ 0.22 $ 0.75 $ 0.16 Weighted-average common shares outstanding – basic 45,039 45,020 44,690 44,324 Net income (loss) attributable to HNI Corporation per common share – diluted $ 0.24 $ 0.21 $ 0.74 $ 0.16 Weighted-average common shares outstanding – diluted 45,838 45,868 45,611 45,202 As a Percentage of Net Sales Net sales 100.0 % 100.0 % 100.0 % 100.0 % Gross profit 34.3 35.6 35.8 35.3 Selling and administrative expenses 32.1 30.5 27.0 28.2 (Gain) on sale of assets (1.9 ) (0.3 ) — (0.2 ) Restructuring related charges — 2.0 0.2 3.4 Operating income (loss) 4.1 3.3 8.6 3.8 Income taxes 1.2 1.0 2.8 2.5 Net income (loss) attributable to HNI Corporation 2.5 1.9 5.5 1.1 |
Investor Information
Investor Information | 12 Months Ended |
Jan. 02, 2016 | |
Investor Information [Abstract] | |
Investor Information | INVESTOR INFORMATION Common Stock Market Prices and Dividends (Unaudited) Quarterly 2015 – 2013 2015 by Quarter High Low Dividends per Share 1 st $56.47 $38.01 $0.25 2 nd 57.74 46.19 0.265 3 rd 52.52 41.29 0.265 4 th 47.68 35.53 0.265 Total Dividends Paid $1.045 2014 by Quarter High Low Dividends per Share 1 st $39.42 $31.00 $0.24 2 nd 39.29 31.61 0.25 3 rd 40.43 34.62 0.25 4 th 52.90 34.75 0.25 Total Dividends Paid $0.99 2013 by Quarter High Low Dividends per Share 1 st $35.74 $28.28 $0.24 2 nd 38.53 31.45 0.24 3 rd 40.73 32.38 0.24 4 th 40.10 32.83 0.24 Total Dividends Paid $0.96 Common Stock Market Price and Price/Earnings Ratio (Unaudited) Fiscal Years 2015 – 2011 Market Price Diluted Earnings per Share Price/Earnings Ratio Year High Low High Low 2015 $57.74 $35.53 $2.32 25 15 2014 52.90 31.00 1.35 39 23 2013 40.73 28.28 1.39 29 20 2012 32.02 21.57 1.07 30 20 2011 36.48 15.78 1.01 36 16 Five-Year Average 32 19 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Cash, Cash Equivalents and Investments | Cash and cash equivalents generally consist of cash and money market accounts. The fair value approximates the carrying value due to the short duration of the securities. These securities have original maturity dates not exceeding three months. The Corporation has short-term investments with maturities of less than one year and also has investments with maturities greater than one year included in Other Assets on the Consolidated Balance Sheets. Management classifies investments in marketable securities at the time of purchase and reevaluates such classification at each balance sheet date. Debt securities including government and corporate bonds are classified as available-for-sale and stated at current market value with unrealized gains and losses included as a separate component of equity, net of any related tax effect. The specific identification method is used to determine realized gains and losses on the trade date. |
Receivables | Accounts receivable are presented net of allowance for doubtful accounts of $4.3 million and $5.1 million for 2015 and 2014 , respectively. The allowance is developed based on several factors including overall customer credit quality, historical write-off experience, and specific account analyses projecting the ultimate collectability of the account. As such, these factors may change over time causing the reserve level to adjust accordingly. |
Inventories | The Corporation valued 78 percent and 71 percent of its inventory by the LIFO method at January 2, 2016 and January 3, 2015 , respectively. During 2014 and 2013, inventory quantities were reduced at certain reporting units. This reduction resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the cost of current year purchases, the effect of which decreased cost of goods sold by approximately $0.03 million and $0.2 million in 2014 and 2013, respectively. If the FIFO method had been in use, inventories would have been $25.1 million and $28.0 million higher than reported at January 2, 2016 and January 3, 2015 , respectively. |
Property, Plant and Equipment | Property, plant and equipment are carried at cost. Expenditures for repairs and maintenance are expensed as incurred. Major improvements that materially extend the useful lives of the assets are capitalized. Depreciation has been computed using the straight-line method over estimated useful lives: land improvements, 10 – 20 years; buildings, 10 – 40 years; and machinery and equipment, 3 – 12 years. |
Long-Lived Assets | Long-lived assets are reviewed for impairment as events or changes in circumstances occur indicating the amount of the asset reflected in the Corporation’s balance sheet may not be recoverable. An estimate of undiscounted cash flows produced by the asset, or the appropriate group of assets, is compared to the carrying value to determine whether impairment exists. The estimates of future cash flows involve considerable management judgment and are based upon assumptions about expected future operating performance. The actual cash flows could differ from management’s estimates due to changes in business conditions, operating performance and economic conditions. Asset impairment charges recorded in connection with the Corporation’s restructuring activities are discussed in Restructuring Related Charges. These assets included real estate, manufacturing equipment and certain other fixed assets. The Corporation’s continuous focus on improving the manufacturing process tends to increase the likelihood of assets being replaced; therefore, the Corporation is regularly evaluating the expected lives of its equipment and accelerating depreciation where appropriate. |
Product Warranties | The Corporation issues certain warranty policies on its furniture and hearth products that provide for repair or replacement of any covered product or component failing during normal use because of a defect in design, materials 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 expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. |
Revenue Recognition | Sales of office furniture and hearth products are generally recognized when title transfers and the risks and rewards of ownership have passed to customers. Typically title and risk of ownership transfer when the product is shipped. In certain circumstances, title and risk of ownership do not transfer until the goods are received by the customer or upon installation and customer acceptance. Revenue includes freight charged to customers; related costs are recorded in selling and administrative expense. Rebates, discounts and other marketing program expenses directly related to the sale are recorded as a reduction to net sales. Marketing program accruals require the use of management estimates and the consideration of contractual arrangements subject to interpretation. Customer sales that achieve or do not achieve certain award levels can affect the amount of such estimates and actual results could differ from these estimates. |
Product Development Costs | Product development costs relating to development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. These costs include salaries, contractor fees, building costs, utilities and administrative fees. |
Freight Expense | The Corporation records freight expense on shipments to customers in "Selling and Administrative Expenses" on the Consolidated Statements of Income. |
Stock-Based Compensation | The Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes cost over the requisite service period. |
Income Taxes | The Corporation uses an asset and liability approach that takes into account guidance related to uncertain tax positions and requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred income taxes are provided to reflect differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. The Corporation provides for taxes that may be payable if undistributed earnings of overseas subsidiaries were to be remitted to the United States, except for those earnings it considers to be permanently reinvested. |
Earnings Per Share | Basic earnings per share are based on the weighted-average number of common shares outstanding during the year. Shares potentially issuable under stock options, restricted stock units and common stock equivalents under the Corporation's deferred compensation plans have been considered outstanding for purposes of the diluted earnings per share calculation. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The more significant areas requiring use of management estimates relate to allowance for doubtful accounts, inventory reserves, marketing program accruals, warranty accruals, accruals for self-insured medical claims, workers’ compensation, legal contingencies, general liability and auto insurance claims, valuation of long-lived assets, and useful lives for depreciation and amortization. Actual results could differ from those estimates. |
Self-Insurance | The Corporation is primarily self-insured for general, auto and product liability, workers’ compensation, and certain employee health benefits. The general, auto, product and workers’ compensation liabilities are managed using a wholly owned insurance captive and the related liabilities are included in the accompanying consolidated financial statements. As of January 2, 2016 , these liabilities totaled $27.7 million . The Corporation’s policy is to accrue amounts in accordance with the actuarially determined liabilities. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost inflation and magnitude of change in actual experience development could cause these estimates to change in the future. |
Foreign Currency Translations | Foreign currency financial statements of foreign operations where the local currency is the functional currency are translated using exchange rates in effect at period end for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component of Shareholders’ Equity. Gains and losses on foreign currency transactions are included in the “Selling and administrative expenses” caption of the Consolidated Statements of Income. |
Reclassifications | Certain reclassifications have been made within the financial statements to conform to the current year presentation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, with early adoption permitted. The new guidance has been adopted on a prospective basis by the Company for the fiscal year ended January 2, 2016. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | At January 2, 2016 and January 3, 2015 , cash, cash equivalents and investments consisted of the following: Year-End 2015 (In thousands) Cash and cash equivalents Short-term investments Long-term investments Held-to-maturity securities Certificates of deposit $ — $ 252 $ — Available-for-sale securities Debt securities — 4,000 8,067 Cash and money market accounts 28,548 — — Total $ 28,548 $ 4,252 $ 8,067 The amortized cost basis of the debt securities as of January 2, 2016 was $12.1 million . Immaterial unrealized gains are recorded in accumulated other comprehensive income as of January 2, 2016 for these debt securities. Year-End 2014 (In thousands) Cash and cash equivalents Short-term investments Long-term investments Held-to-maturity securities Certificates of deposit $ — $ 252 $ — Available-for-sale securities Debt securities — 2,800 9,240 Cash and money market accounts 34,144 — — Total $ 34,144 $ 3,052 $ 9,240 The amortized cost basis of the debt securities as of January 3, 2015 was $12.0 million . Unrealized gains of $0.1 million and unrealized losses of $0.0 million are recorded in accumulated other comprehensive income as of January 3, 2015 for these debt securities. |
Allowance for Doubtful Accounts | Allowance for doubtful accounts Balance at beginning of period Charged to costs and expenses Amounts written off, net of recoveries and other adjustments Balance at end of period Year ended January 2, 2016 5,096 1,394 2,203 4,287 Year ended January 3, 2015 6,208 343 1,455 5,096 Year ended December 28, 2013 5,151 2,590 1,533 6,208 |
Schedule of Product Warranties | Activity associated with warranty obligations was as follows: (In thousands) 2015 2014 2013 Balance at the beginning of the period $ 16,719 $ 13,840 $ 13,055 Accrual assumed from acquisition — 1,100 — Accruals for warranties issued during the period 19,995 18,951 21,878 Accrual(Recovery) related to pre-existing warranties (334 ) 172 106 Settlements made during the period (20,153 ) (17,344 ) (21,199 ) Balance at the end of the period $ 16,227 $ 16,719 $ 13,840 |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share (EPS): (In thousands, except per share data) 2015 2014 2013 Numerators: Numerators for both basic and diluted EPS net income attributable to parent company $ 105,436 $ 61,471 $ 63,683 Denominators: Denominator for basic EPS weighted- average common shares outstanding 44,285 44,760 45,251 Potentially dilutive shares from stock option plans 1,156 819 706 Denominator for diluted EPS 45,441 45,579 45,956 Earnings per share – basic $ 2.38 $ 1.37 $ 1.41 Earnings per share – diluted $ 2.32 $ 1.35 $ 1.39 |
Restructuring and Impairment 32
Restructuring and Impairment Charges (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the restructuring accrual activity since the beginning of fiscal 2013 . (In thousands) Severance Costs Facility Termination & Other Costs Total Restructuring reserve at December 29, 2012 $ 192 $ 18 $ 210 Restructuring charges (8 ) 341 333 Cash payments (135 ) (353 ) (488 ) Restructuring reserve At December 28, 2013 $ 49 $ 6 $ 55 Restructuring charges 2,933 705 3,638 Cash payments (1,769 ) (711 ) (2,480 ) Restructuring reserve At January 3, 2015 $ 1,213 $ — $ 1,213 Restructuring charges (706 ) 1,255 549 Cash Payments (257 ) (1,240 ) (1,497 ) Restructuring reserve At January 2, 2016 $ 250 $ 15 $ 265 |
Supplemental Cash Flow Inform33
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The Corporation's cash payments for interest and income taxes and non-cash investing and financing activities are as follows: (In thousands) 2015 2014 2013 Cash paid for: Interest paid (net of capitalized interest) $ 7,066 $ 8,301 $ 9,909 Income taxes paid 28,252 36,637 9,576 Changes in accrued expenses due to: Purchases of property and equipment (327 ) 3,873 3,769 Purchases of capitalized software (2,806 ) 2,183 1,114 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventory Current Table | Inventories (In thousands) 2015 2014 Finished products $ 68,478 $ 65,126 Materials and work in process 81,860 84,677 LIFO reserve (25,110 ) (28,012 ) $ 125,228 $ 121,791 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment | Property, Plant, and Equipment (In thousands) 2015 2014 Land and land improvements $ 28,801 $ 27,329 Buildings 298,516 298,170 Machinery and equipment 515,131 492,646 Construction and equipment installation in progress 31,986 27,704 874,434 845,849 Less: accumulated depreciation 533,275 534,841 $ 341,159 $ 311,008 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets by Major Class | The table below summarizes amortizable definite-lived intangible assets, which are reflected in Other Assets in the Corporation’s Consolidated Balance Sheets: January 2, 2016 January 3, 2015 (In thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 18,645 $ 18,615 $ 30 $ 18,945 $ 18,724 $ 221 Software 122,892 21,193 101,699 93,343 17,711 75,632 Trademarks and trade names 6,564 753 5,811 11,424 1,724 9,700 Customer lists and other 105,586 60,063 45,523 113,671 58,019 55,652 Net definite lived intangible assets $ 253,687 $ 100,624 $ 153,063 $ 237,383 $ 96,178 $ 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) 2016 2017 2018 2019 2020 Amortization expense $ 11.6 $ 17.6 $ 17.8 $ 17.1 $ 16.5 |
Schedule of Goodwill | The changes in the carrying amount of goodwill since December 28, 2013 , are as follows by reporting segment: (In thousands) Office Furniture Hearth Products Total 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 during the year — 15,713 15,713 Impairment losses (22,802 ) — (22,802 ) Foreign currency translation adjustment (256 ) — (256 ) Balance as of January 3, 2015 Goodwill 149,713 181,901 331,614 Accumulated impairment losses (52,161 ) (143 ) (52,304 ) 97,552 181,758 279,310 Impairment losses (2,963 ) — (2,963 ) Final purchase price allocations/contingent payments from prior year acquisitions — 1,298 1,298 Foreign currency translation adjustment 5 — 5 Balance as of January 2, 2016 Goodwill 149,718 183,199 332,917 Accumulated impairment losses (55,124 ) (143 ) (55,267 ) 94,594 183,056 277,650 |
Accounts Payable and Accrued 37
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Expenses (In thousands) 2015 2014 Trade accounts payable $ 197,579 $ 224,026 Compensation 43,380 46,619 Profit sharing and retirement expense 29,089 27,956 Marketing expenses 35,969 39,175 Freight 16,384 15,531 Other accrued expenses 102,004 100,447 $ 424,405 $ 453,754 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | (In thousands) 2015 2014 Note payable to bank, revolving credit facility with interest at a variable rate (2015 - 1.5%; 2014 - 1.8%) $ 40,300 $ 47,700 Senior notes due April 2016 with interest at a fixed rate of 5.54% per annum. 150,000 150,000 Other notes and amounts 177 91 Total debt 190,477 197,791 Less: current portion 5,477 55 Long-term debt $ 185,000 $ 197,736 |
Schedule of Maturities of Long-term Debt | Aggregate maturities of long-term debt are as follows: (In thousands) 2016 $ 5,477 2017 35,000 2018 — 2019 — 2020 — Thereafter 150,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes including those related to noncontrolling interest and discontinued operations are as follows: (In thousands) 2015 2014 2013 Current: Federal $ 27,768 $ 22,738 $ 12,077 State 5,258 4,623 1,036 Foreign 1,713 972 2,153 Current provision 34,739 28,333 15,266 Deferred: Federal 15,348 13,692 16,614 State 2,217 2,013 2,558 Foreign (540 ) (262 ) (1,100 ) Deferred provision 17,025 15,443 18,072 $ 51,764 $ 43,776 $ 33,338 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the actual tax expense and tax expense computed at the statutory U.S. Federal tax rate are explained as follows: 2015 2014 2013 Federal statutory tax expense $ 55,020 $ 36,836 $ 33,957 State taxes, net of federal tax effect 4,269 4,118 2,469 Credit for increasing research activities (3,320 ) (2,569 ) (1,338 ) Deduction related to domestic production activities (3,320 ) (1,751 ) (1,396 ) Valuation allowance — 2,474 — Goodwill Impairment — 4,298 — Change in uncertain tax positions (1,344 ) 1,099 773 Other – net 459 (729 ) (1,127 ) Total income tax expense $ 51,764 $ 43,776 $ 33,338 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Corporation’s deferred tax liabilities and assets are as follows: (In thousands) 2015 2014 Deferred Taxes Allowance for doubtful accounts $ 1,089 $ 1,240 Compensation 15,491 16,817 Inventory differences 4,497 5,691 Marketing accrual 1,355 1,454 Stock-based compensation 11,923 9,906 Accrued post-retirement benefit obligations 6,682 6,341 OCI tax effected items 3,169 3,887 Vacation accrual 4,181 3,875 Warranty Accrual 6,052 6,023 Other – net 12,167 10,774 Total deferred tax assets $ 66,606 $ 66,008 Deferred income (4,907 ) (4,836 ) Goodwill (79,471 ) (80,366 ) Prepaids (7,876 ) (7,724 ) Tax over book depreciation (59,308 ) (41,770 ) Total deferred tax liabilities $ (151,562 ) $ (134,696 ) Valuation allowance (3,978 ) (3,413 ) Total net deferred tax liabilities $ (88,934 ) $ (72,101 ) Current net deferred tax assets — 17,310 Long term net deferred tax liabilities (88,934 ) (89,411 ) Total net deferred tax liabilities $ (88,934 ) $ (72,101 ) |
Summary of Valuation Allowance | The valuation allowance for deferred tax assets is as follows: Valuation allowance for deferred tax asset (in thousands) Balance at beginning of period Charged to expenses Adjustments to balance sheet Balance at end of period Year ended January 2, 2016 3,413 — 565 3,978 Year ended January 3, 2015 1,579 2,474 (640 ) 3,413 Year ended December 28, 2013 1,580 — (1 ) 1,579 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands) 2015 2014 Unrecognized tax benefits, beginning of period $ 4,250 $ 2,809 Increases in positions due to purchase accounting — 400 Increases in positions taken in a prior period 82 406 Decreases in positions taken in a prior period (1,611 ) (124 ) New positions taken in a current period 793 1,422 Decrease due to settlements — — Decrease due to lapse of statute of limitations (656 ) (663 ) Unrecognized tax benefits, end of period $ 2,858 $ 4,250 |
Fair Value Measurements of Fi40
Fair Value Measurements of Financial Instruments (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis Table | Assets measured at fair value for the year ended January 2, 2016 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 $ 9,663 $ — $ 9,663 $ — Corporate bonds $ 2,405 $ — $ 2,405 $ — Derivative financial instruments $ (1,252 ) $ — $ (1,252 ) $ — Assets measured at fair value for the year ended 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 ) $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Schedule of Stock by Class | 2015 2014 Common Stock, $1 Par Value Authorized 200,000,000 200,000,000 Issued and outstanding 44,158,256 44,165,676 Preferred Stock, $1 Par Value Authorized 2,000,000 2,000,000 Issued and outstanding — — |
Schedule of Accumulated Other Comprehensive Income Loss Table | The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income loss: (in thousands) Foreign Currency Translation Adjustment Unrealized Gains Losses) on Marketable Securities Pension Postretirement Liability Derivative Financial Instruments Accumulated Other Comprehensive Loss Balance at December 29, 2012 $ 5,475 $ 205 $ (4,291 ) $ (76 ) $ 1,313 Other comprehensive income before reclassifications (2,562 ) (191 ) 3,389 538 1,174 Less: Taxes — (67 ) 1,312 197 1,442 Amounts reclassified from accumulated other comprehensive income, net of tax — — 74 (154 ) (80 ) Balance at December 28, 2013 2,913 81 (2,140 ) 111 965 Other comprehensive income before reclassifications (690 ) (67 ) (7,280 ) (1,728 ) (9,765 ) Less: Taxes — (23 ) (2,657 ) (631 ) (3,311 ) Amounts reclassified from accumulated other comprehensive income, net of tax — — — 114 114 Balance at January 3, 2015 2,223 37 (6,763 ) (872 ) (5,375 ) Other comprehensive income before reclassifications (1,901 ) (60 ) 1,975 (1,188 ) (1,174 ) Less: Taxes — (21 ) 718 (433 ) 264 Amounts reclassified from accumulated other comprehensive income, net of tax — — — 1,627 1,627 Balance at January 2, 2016 $ 322 $ (2 ) $ (5,506 ) $ — $ (5,186 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income (loss) for the years ended January 3, 2015 and January 2, 2016 (in thousands): Details about Accumulated Other Comprehensive Income Components Affected Line Item in the Statement Where Net Income is Presented 2015 2014 Derivative financial instruments Diesel hedge Selling and administrative expenses $ (2,562 ) $ (180 ) Tax (expense) or benefit 935 66 Net of tax $ (1,627 ) $ (114 ) |
Schedule of Dividends Declared and Paid Per Share | Cash dividends declared and paid per share for each year are: (In dollars) 2015 2014 2013 Common shares $ 1.045 $ 0.99 $ 0.96 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Valuation Assumptions | The stock compensation expense for the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 , was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions by grant year: Year Ended Jan, 2, 2016 Year Ended Jan, 3, 2015 Year Ended Dec. 28, 2013 Expected term 6 years 5 years 5 years Expected volatility: Weighted-average 43.54 % 42.49 % 50.39 % Expected dividend yield: Weighted-average 1.94 % 2.76 % 3.02 % Risk-free interest rate: Range used 1.69 % 1.54 % 0.93 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the changes in outstanding stock options since the beginning of fiscal 2013 . Number of Shares Weighted-Average Exercise Price Outstanding at December 29, 2012 3,456,514 $ 27.96 Granted 611,599 31.79 Exercised (394,476 ) 14.86 Forfeited or Expired (43,070 ) 35.05 Outstanding at December 28, 2013 3,630,567 $ 29.94 Granted 536,275 34.78 Exercised (542,837 ) 28.53 Forfeited or Expired (288,560 ) 38.55 Outstanding at January 3, 2015 3,335,445 $ 29.93 Granted 350,038 51.54 Exercised (302,635 ) 30.22 Forfeited or Expired (24,525 ) 39.14 Outstanding at January 2, 2016 3,358,323 $ 32.09 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Corporation’s nonvested stock options as of January 2, 2016 and changes during the year are presented below: Nonvested Stock Options Shares Weighted-Average Grant-Date Fair Value Nonvested at January 3, 2015 2,286,997 $ 10.14 Granted 350,038 22.66 Vested (480,585 ) 11.56 Forfeited (17,726 ) 11.63 Nonvested at January 2, 2016 2,138,724 $ 11.86 |
Stock Option Vested or Expected to Vest and are Exercisable | Information about stock options expected to vest or currently exercisable at January 2, 2016 , is as follows: Options Number Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value ($000s) Expected to vest 2,084,026 $ 33.39 7.3 $ 13,155 Exercisable 1,219,599 $ 29.30 3.7 $ 13,078 |
Schedule of Share-based Compensation Arrangement Other Information | Other information for the last three years is as follows: (In thousands) Jan. 2, 2016 Jan. 3, 2015 Dec. 28, 2013 Total fair value of shares vested $ 5,554 $ 5,735 $ 1,127 Total intrinsic value of options exercised 6,412 8,389 6,445 Cash received from exercise of stock options 9,145 15,489 5,862 Tax benefit realized from exercise of stock options 2,111 2,982 2,291 |
Schedule of Share-based Compensation, Restricted Stock Units Activity | The following table summarizes the changes in outstanding RSUs since the beginning of fiscal 2013: Number of Shares Weighted-Average Grant Date Fair Value Outstanding at December 29, 2012 157,219 $ 21.71 Granted — — Vested (132,693 ) 21.47 Forfeited — — Outstanding at December 28, 2013 24,526 $ 23.01 Granted 15,500 32.23 Vested (14,000 ) 21.47 Forfeited — — Outstanding at January 3, 2015 26,026 $ 27.76 Granted 23,000 51.54 Vested (10,526 ) 21.19 Forfeited — — Outstanding at January 2, 2016 38,500 $ 43.77 |
Postretirement Health Care (Tab
Postretirement Health Care (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Postretirement Benefit Cost | (In thousands) 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 21,972 $ 16,448 Service cost 803 504 Interest cost 816 735 Benefits paid (1,009 ) (1,280 ) Actuarial (gain)/loss (1,698 ) 5,565 Benefit obligation at end of year $ 20,884 $ 21,972 Change in plan assets Fair value at beginning of year $ — $ — Actual return on assets — — Employer contribution 1,009 1,280 Transferred out — — Benefits paid (1,009 ) (1,280 ) Fair value at end of year $ — $ — Funded Status of Plan $ (20,884 ) $ (21,972 ) Amounts recognized in the Statement of Financial Position consist of: Current liabilities $ 1,014 $ 1,004 Noncurrent liabilities $ 19,870 $ 20,968 Amounts recognized in Accumulated Other Comprehensive Income (before tax) consist of: Actuarial (gain)/loss $ 2,730 $ 4,665 Transition (asset)/obligation — — Prior service cost — — $ 2,730 $ 4,665 Change in Accumulated Other Comprehensive Income (before tax): Amount disclosed at beginning of year $ 4,665 $ (900 ) Actuarial (gain)/loss (1,698 ) 5,565 Amortization of actuarial gain or loss — Amortization of transition amount (237 ) — Amortization of prior service cost — Amount disclosed at end of year $ 2,730 $ 4,665 |
Schedule of Expected Benefit Payments | Estimated Future Benefit Payments (In thousands) Fiscal 2016 $ 1,014 Fiscal 2017 1,020 Fiscal 2018 1,018 Fiscal 2019 1,042 Fiscal 2020 1,076 Fiscal 2021 – 2025 6,375 Expected Contributions During Fiscal 2016 Total $ 1,014 |
Schedule of Net Benefit Costs | Components of Net Periodic Postretirement Benefit Cost (in thousands) 2016 Service cost $ 735 Interest cost 846 Amortization of net (gain)/loss 62 Net periodic postretirement benefit cost/(income) $ 1,643 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Leases [Abstract] | |
Capitalized and Operating Leases | Commitments for minimum rentals under non-cancelable leases at the end of 2015 are as follows: (In thousands) Operating Leases 2016 $ 30,241 2017 23,640 2018 16,684 2019 11,422 2020 6,451 Thereafter 10,268 Total minimum lease payments $ 98,706 |
Schedule of Capital Leased Asssets | Property, plant and equipment at year-end include the following amounts for capitalized leases: (In thousands) 2015 2014 Office equipment $ — $ 570 Less: allowances for depreciation — 460 $ — $ 110 |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Reportable segment data reconciled to the consolidated financial statements for the years ended 2015 , 2014 , and 2013 , is as follows for continuing operations: (In thousands) 2015 2014 2013 Net sales: Office furniture $ 1,777,804 $ 1,739,049 $ 1,685,205 Hearth products 526,615 483,646 374,759 $ 2,304,419 $ 2,222,695 $ 2,059,964 Operating profit: Office furniture (a) $ 136,593 $ 87,053 $ 97,339 Hearth products (b) 78,162 77,066 46,662 Total operating profit 214,755 164,119 144,001 Unallocated corporate expenses (57,585 ) (59,188 ) (47,294 ) Income (loss) before income taxes $ 157,170 $ 104,931 $ 96,707 Depreciation and amortization expense: Office furniture $ 42,415 $ 45,891 $ 36,992 Hearth products 8,430 5,415 5,288 General corporate 6,719 5,416 4,341 $ 57,564 $ 56,722 $ 46,621 Capital expenditures (including capitalized software): Office furniture $ 64,850 $ 62,696 $ 51,954 Hearth products 11,078 6,342 4,220 General corporate 39,038 43,675 22,721 $ 114,966 $ 112,713 $ 78,895 Identifiable assets: Office furniture $ 739,915 $ 724,293 $ 722,697 Hearth products 341,813 341,315 255,978 General corporate 182,197 173,726 156,030 $ 1,263,925 $ 1,239,334 $ 1,134,705 (a) Included in operating profit for the office furniture segment are pretax charges of $11.7 million , $33.0 million and $0.3 million , for closing of facilities and impairment charges in 2015 , 2014 and 2013 , respectively. (b) Included in operating profit for the hearth products segment are pretax charges of $0.9 million related to exiting a line of business in 2015. |
Net Sales by Product Category | The Corporation's net sales by product category were as follows for the years ended 2015 , 2014 and 2013 : (in thousands) 2015 2014 2013 Systems and storage $ 1,140,369 $ 1,156,170 $ 1,132,885 Seating 561,392 498,389 469,220 Other 76,043 84,490 83,100 Hearth products 526,615 483,646 374,759 $ 2,304,419 $ 2,222,695 $ 2,059,964 |
Summary of Quarterly Results 46
Summary of Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Year-End 2015: (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 523,477 $ 568,226 $ 615,850 $ 596,866 Cost of products sold 338,977 362,102 384,219 371,723 Gross profit 184,500 206,124 231,631 225,143 Selling and administrative expenses 168,704 167,278 170,371 165,772 (Gain) on sale of assets — — — (195 ) Restructuring related charges (income) 377 (560 ) 172 11,803 Operating income (loss) 15,419 39,406 61,088 47,763 Interest income (expense) – net (1,899 ) (1,849 ) (1,623 ) (1,135 ) Income (loss) before income taxes 13,520 37,557 59,465 46,628 Income taxes 5,068 13,680 18,619 14,397 Net income (loss) 8,452 23,877 40,846 32,231 Less: net income attributable to the noncontrolling interest (26 ) (2 ) (2 ) — Net income (loss) attributable to HNI Corporation $ 8,478 $ 23,879 $ 40,848 $ 32,231 Net income (loss) attributable to HNI Corporation per common share – basic $ 0.19 $ 0.54 $ 0.92 $ 0.73 Weighted-average common shares outstanding – basic 44,304 44,416 44,263 44,158 Net income (loss) attributable to HNI Corporation per common share – diluted $ 0.19 $ 0.52 $ 0.90 $ 0.71 Weighted-average common shares outstanding – diluted 45,524 45,621 45,403 45,199 As a Percentage of Net Sales Net sales 100.0 % 100.0 % 100.0 % 100.0 % Gross profit 35.2 36.3 37.6 37.7 Selling and administrative expenses 32.2 29.4 27.7 27.8 Restructuring related charges 0.1 (0.1 ) — 2.0 Operating income (loss) 2.9 6.9 9.9 8.0 Income taxes 1.0 2.4 3.0 2.4 Net income (loss) attributable to HNI Corporation 1.6 4.2 6.6 5.4 Year-End 2014: (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 452,201 $ 509,143 $ 614,690 $ 646,661 Cost of products sold 297,029 328,010 394,758 418,698 Gross profit 155,172 181,133 219,932 227,963 Selling and administrative expenses 145,210 155,288 166,216 182,341 (Gain) on sale of assets (8,400 ) (1,346 ) — (977 ) Restructuring related charges (28 ) 10,282 987 21,778 Operating income (loss) 18,390 16,909 52,729 24,821 Interest income (expense) – net (2,132 ) (2,041 ) (1,861 ) (1,884 ) Income (loss) before income taxes 16,258 14,868 50,868 22,937 Income taxes 5,242 5,203 17,372 15,959 Net income (loss) 11,016 9,665 33,496 6,978 Less: net income attributable to the noncontrolling interest (80 ) (40 ) (92 ) (104 ) Net income (loss) attributable to HNI Corporation $ 11,096 $ 9,705 $ 33,588 $ 7,082 Net income (loss) attributable to HNI Corporation per common share – basic $ 0.25 $ 0.22 $ 0.75 $ 0.16 Weighted-average common shares outstanding – basic 45,039 45,020 44,690 44,324 Net income (loss) attributable to HNI Corporation per common share – diluted $ 0.24 $ 0.21 $ 0.74 $ 0.16 Weighted-average common shares outstanding – diluted 45,838 45,868 45,611 45,202 As a Percentage of Net Sales Net sales 100.0 % 100.0 % 100.0 % 100.0 % Gross profit 34.3 35.6 35.8 35.3 Selling and administrative expenses 32.1 30.5 27.0 28.2 (Gain) on sale of assets (1.9 ) (0.3 ) — (0.2 ) Restructuring related charges — 2.0 0.2 3.4 Operating income (loss) 4.1 3.3 8.6 3.8 Income taxes 1.2 1.0 2.8 2.5 Net income (loss) attributable to HNI Corporation 2.5 1.9 5.5 1.1 |
Investor Information (Tables)
Investor Information (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Investor Information [Abstract] | |
Schedule of Common Stock Market Price and Dividends | 2015 by Quarter High Low Dividends per Share 1 st $56.47 $38.01 $0.25 2 nd 57.74 46.19 0.265 3 rd 52.52 41.29 0.265 4 th 47.68 35.53 0.265 Total Dividends Paid $1.045 2014 by Quarter High Low Dividends per Share 1 st $39.42 $31.00 $0.24 2 nd 39.29 31.61 0.25 3 rd 40.43 34.62 0.25 4 th 52.90 34.75 0.25 Total Dividends Paid $0.99 2013 by Quarter High Low Dividends per Share 1 st $35.74 $28.28 $0.24 2 nd 38.53 31.45 0.24 3 rd 40.73 32.38 0.24 4 th 40.10 32.83 0.24 Total Dividends Paid $0.96 |
Schedule of Common Stock Market Price and Price/Earnings Ratio | Market Price Diluted Earnings per Share Price/Earnings Ratio Year High Low High Low 2015 $57.74 $35.53 $2.32 25 15 2014 52.90 31.00 1.35 39 23 2013 40.73 28.28 1.39 29 20 2012 32.02 21.57 1.07 30 20 2011 36.48 15.78 1.01 36 16 Five-Year Average 32 19 |
Nature of Operations Nature of
Nature of Operations Nature of Operations - Narrative (Details) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fiscal period | 364 days | 371 days | 364 days |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
General Accounting Policies [Line Items] | |||
Amortized cost basis of the debt securities | $ 12,100 | $ 12,000 | |
Gross unrealized gain | 100 | ||
Gross unrealized loss | 0 | ||
Allowance for doubtful accounts receivable, current | $ 4,300 | $ 5,100 | |
Percentage of LIFO inventory | 78.00% | 71.00% | |
Effect of LIFO inventory, decrease in cost of goods sold | $ 30 | $ 200 | |
LIFO reserve | $ 25,110 | 28,012 | |
Reserve for estimated warranty settlements, current | 8,200 | 8,500 | |
Reserve for estimated warranty settlements, noncurrent | 8,000 | 8,200 | |
Product development costs | 31,100 | 29,700 | 27,300 |
Freight expense | 133,400 | $ 131,000 | $ 123,800 |
Accumulated foreign earnings considered permanently reinvested | 33,900 | ||
Income tax effect of repatriation of foreign earnings | $ 10,300 | ||
Antidilutive securities excluding from computation of earnings per share | 493,202 | 500,058 | 769,394 |
Insurance liabilities | $ 27,700 | ||
Land Improvements [Member] | Minimum [Member] | |||
General Accounting Policies [Line Items] | |||
Useful life, minimum | 10 years | ||
Land Improvements [Member] | Maximum [Member] | |||
General Accounting Policies [Line Items] | |||
Useful life, minimum | 20 years | ||
Buildings [Member] | Minimum [Member] | |||
General Accounting Policies [Line Items] | |||
Useful life, minimum | 10 years | ||
Buildings [Member] | Maximum [Member] | |||
General Accounting Policies [Line Items] | |||
Useful life, minimum | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
General Accounting Policies [Line Items] | |||
Useful life, minimum | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
General Accounting Policies [Line Items] | |||
Useful life, minimum | 12 years |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | $ 28,548 | $ 34,144 | $ 65,030 | $ 41,782 |
Short-term investments | 4,252 | 3,052 | ||
Long-term investments | 8,067 | 9,240 | ||
Certificates of Deposit [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 252 | 252 | ||
Long-term investments | 0 | 0 | ||
Debt Securities [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 4,000 | 2,800 | ||
Long-term investments | 8,067 | 9,240 | ||
Cash and Money Markets Accounts [Member] | ||||
Schedule of Cash, Cash Equivalents and Investments [Line Items] | ||||
Cash and cash equivalents | 28,548 | 34,144 | ||
Short-term investments | 0 | 0 | ||
Long-term investments | $ 0 | $ 0 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Allowance for doubtful accounts) (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 5,096 | $ 6,208 | $ 5,151 |
Charged to costs and expenses | 1,394 | 343 | 2,590 |
Amounts written off, net of recoveries and other adjustments | 2,203 | 1,455 | 1,533 |
Balance at end of period | $ 4,287 | $ 5,096 | $ 6,208 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Product Warranties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Product Warranty Accrual [Roll Forward] | |||
Balance at the beginning of the period | $ 16,719 | $ 13,840 | $ 13,055 |
Accrual assumed from acquisition | 0 | 1,100 | 0 |
Accruals for warranties issued during the period | 19,995 | 18,951 | 21,878 |
Accrual(Recovery) related to pre-existing warranties | (334) | 172 | 106 |
Settlements made during the period | (20,153) | (17,344) | (21,199) |
Balance at the end of the period | $ 16,227 | $ 16,719 | $ 13,840 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Numerators: | |||||||||||||
Numerators for both basic and diluted EPS net income attributable to parent company | $ 32,231 | $ 40,848 | $ 23,879 | $ 8,478 | $ 7,082 | $ 33,588 | $ 9,705 | $ 11,096 | $ 105,436 | $ 61,471 | $ 63,683 | ||
Denominators: | |||||||||||||
Denominator for basic EPS weighted- average common shares outstanding | 44,158,000 | 44,263,000 | 44,416,000 | 44,304,000 | 44,324,000 | 44,690,000 | 45,020,000 | 45,039,000 | 44,285,298 | 44,759,716 | 45,250,665 | ||
Potentially dilutive shares from stock-based compensation plans (shares) | 1,156,000 | 819,000 | 706,000 | ||||||||||
Denominator for diluted EPS (shares) | 45,199,000 | 45,403,000 | 45,621,000 | 45,524,000 | 45,202,000 | 45,611,000 | 45,868,000 | 45,838,000 | 45,440,653 | 45,578,872 | 45,956,280 | ||
Earnings per share - basic | $ 0.73 | $ 0.92 | $ 0.54 | $ 0.19 | $ 0.16 | $ 0.75 | $ 0.22 | $ 0.25 | $ 2.38 | $ 1.37 | $ 1.41 | ||
Earnings per share - diluted | $ 0.71 | $ 0.90 | $ 0.52 | $ 0.19 | $ 0.16 | $ 0.74 | $ 0.21 | $ 0.24 | $ 2.32 | $ 1.35 | $ 1.39 | $ 1.07 | $ 1.01 |
Restructuring and Impairment 54
Restructuring and Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 549 | $ 3,638 | $ 333 |
Goodwill impairment | 2,963 | 22,802 | |
Office Furniture [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 400 | 8,800 | |
Goodwill impairment | 2,963 | 22,802 | |
Hearth Products [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 900 | ||
Goodwill impairment | 0 | $ 0 | |
Facility Exit Costs [Member] | Office Furniture [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 300 | ||
Severance and Facility Exit Costs [Member] | Florence Chicago Nalagarh [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,600 | ||
Cost of Sales [Member] | Hearth Products [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 800 | ||
Cost of Sales [Member] | Machinery and Equipment [Member] | Facility Exit Costs [Member] | Florence Chicago Nalagarh [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring accelerated depreciation costs | 5,200 | ||
Restructuring and Impairment Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Goodwill impairment | $ 11,200 |
Restructuring and Impairment 55
Restructuring and Impairment Charges (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve at beginning of period | $ 1,213 | $ 55 | $ 210 |
Restructuring charges | 549 | 3,638 | 333 |
Cash payments | (1,497) | (2,480) | (488) |
Restructuring reserve at end of period | 265 | 1,213 | 55 |
Severance Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve at beginning of period | 1,213 | 49 | 192 |
Restructuring charges | (706) | 2,933 | (8) |
Cash payments | (257) | (1,769) | (135) |
Restructuring reserve at end of period | 250 | 1,213 | 49 |
Facility Termination & Other Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve at beginning of period | 0 | 6 | 18 |
Restructuring charges | 1,255 | 705 | 341 |
Cash payments | (1,240) | (711) | (353) |
Restructuring reserve at end of period | $ 15 | $ 0 | $ 6 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Oct. 01, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Business Acquisition [Line Items] | ||||
Purchase price allocation on goodwill | $ 277,650 | $ 279,310 | $ 286,655 | |
Vermont Castings Group [Member] [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash paid for acquisition | $ 62,200 | |||
Purchase price allocation on intangible assets, other than goodwill | 24,900 | |||
Purchase price allocation on goodwill | $ 17,000 | |||
Vermont Castings Group [Member] [Member] | Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life | 5 years | |||
Vermont Castings Group [Member] [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful life | 15 years |
Supplemental Cash Flow Inform57
Supplemental Cash Flow Information (Cash Payments for Interest and Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid (net of capitalized interest) | $ 7,066 | $ 8,301 | $ 9,909 |
Income taxes paid | 28,252 | 36,637 | 9,576 |
Purchases of property and equipment | (327) | 3,873 | 3,769 |
Purchases of capitalized software | $ (2,806) | $ 2,183 | $ 1,114 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 68,478 | $ 65,126 |
Materials and work in process | 81,860 | 84,677 |
LIFO reserve | (25,110) | (28,012) |
Inventories, net | $ 125,228 | $ 121,791 |
Property, Plant, and Equipmen59
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 874,434 | $ 845,849 | |
Less: accumulated depreciation | 533,275 | 534,841 | |
Property, plant and equipment | 341,159 | 311,008 | |
Depreciation | 46,500 | 46,100 | $ 36,300 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 28,801 | 27,329 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 298,516 | 298,170 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 515,131 | 492,646 | |
Construction and Equipment Installation in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 31,986 | $ 27,704 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Goodwill [Line Items] | |||
Capitalized software, amortization | $ 3,500 | $ 3,300 | $ 2,900 |
Amortization expense for definite-lived intangibles | 7,600 | 7,200 | 7,400 |
Goodwill | 277,650 | 279,310 | 286,655 |
Goodwill impairment | 2,963 | 22,802 | |
Trade Names [Member] | |||
Goodwill [Line Items] | |||
Trade names, net value | $ 41,000 | $ 41,000 | $ 41,000 |
One Trade Name [Member] | |||
Goodwill [Line Items] | |||
Discount rate utilized for each reporting unit with rates range, percent | 12.00% | ||
Terminal growth, percent | 3.00% | ||
Trade names, net value | $ 11,200 | ||
Fair Value Exceeds Carrying Value, Goodwill | $ 1,000 | ||
Royalty rate, percent | 2.50% | ||
Reporting Unit One [Member] | |||
Goodwill [Line Items] | |||
Discount rate utilized for each reporting unit with rates range, percent | 13.00% | ||
Terminal growth, percent | 3.00% | ||
Fair value exceeds carrying value, percent | 12.90% | ||
Decrease in fair value for every 100 basis point increase in discount rate | $ 5,000 | ||
Decrease in fair value for every 100 basis point decrease in long-term growth rate | $ 2,000 | ||
Reporting Unit Two [Member] | |||
Goodwill [Line Items] | |||
Discount rate utilized for each reporting unit with rates range, percent | 15.00% | ||
Terminal growth, percent | 4.00% | ||
Fair value exceeds carrying value, percent | 17.80% | ||
Decrease in fair value for every 100 basis point increase in discount rate | $ 5,000 | ||
Decrease in fair value for every 100 basis point decrease in long-term growth rate | $ 2,500 | ||
Minimum [Member] | Reporting Unit One [Member] | |||
Goodwill [Line Items] | |||
Near term growth, percent | 3.50% | ||
Minimum [Member] | Reporting Unit Two [Member] | |||
Goodwill [Line Items] | |||
Near term growth, percent | 10.70% | ||
Maximum [Member] | Reporting Unit One [Member] | |||
Goodwill [Line Items] | |||
Near term growth, percent | 7.50% | ||
Maximum [Member] | Reporting Unit Two [Member] | |||
Goodwill [Line Items] | |||
Near term growth, percent | 8.00% |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets impairment | $ 8,300 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 253,687 | $ 237,383 |
Less: accumulated amortization | 100,624 | 96,178 |
Net intangible assets | 153,063 | 141,205 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2,016 | 11,600 | |
2,017 | 17,600 | |
2,018 | 17,800 | |
2,019 | 17,100 | |
2,020 | 16,500 | |
Patents [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 18,645 | 18,945 |
Less: accumulated amortization | 18,615 | 18,724 |
Net intangible assets | 30 | 221 |
Software [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 122,892 | 93,343 |
Less: accumulated amortization | 21,193 | 17,711 |
Net intangible assets | 101,699 | 75,632 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 6,564 | 11,424 |
Less: accumulated amortization | 753 | 1,724 |
Net intangible assets | 5,811 | 9,700 |
Customer Lists and Other [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible assets, gross | 105,586 | 113,671 |
Less: accumulated amortization | 60,063 | 58,019 |
Net intangible assets | $ 45,523 | $ 55,652 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 331,614 | $ 316,157 |
Accumulated impairment losses, beginning balance | (52,304) | (29,502) |
Goodwill, beginning balance | 279,310 | 286,655 |
Goodwill acquired during the year | 15,713 | |
Impairment losses | (2,963) | (22,802) |
Final purchase price allocations/contingent payments from prior year acquisitions | 1,298 | |
Foreign currency translation adjustment | 5 | (256) |
Goodwill, ending balance | 332,917 | 331,614 |
Accumulated impairment losses, ending balance | (55,267) | (52,304) |
Goodwill, ending balance | 277,650 | 279,310 |
Office Furniture [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 149,713 | 149,969 |
Accumulated impairment losses, beginning balance | (52,161) | (29,359) |
Goodwill, beginning balance | 97,552 | 120,610 |
Goodwill acquired during the year | 0 | |
Impairment losses | (2,963) | (22,802) |
Final purchase price allocations/contingent payments from prior year acquisitions | 0 | |
Foreign currency translation adjustment | 5 | (256) |
Goodwill, ending balance | 149,718 | 149,713 |
Accumulated impairment losses, ending balance | (55,124) | (52,161) |
Goodwill, ending balance | 94,594 | 97,552 |
Hearth Products [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 181,901 | 166,188 |
Accumulated impairment losses, beginning balance | (143) | (143) |
Goodwill, beginning balance | 181,758 | 166,045 |
Goodwill acquired during the year | 15,713 | |
Impairment losses | 0 | 0 |
Final purchase price allocations/contingent payments from prior year acquisitions | 1,298 | |
Foreign currency translation adjustment | 0 | 0 |
Goodwill, ending balance | 183,199 | 181,901 |
Accumulated impairment losses, ending balance | (143) | (143) |
Goodwill, ending balance | $ 183,056 | $ 181,758 |
Accounts Payable and Accrued 63
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 197,579 | $ 224,026 |
Compensation | 43,380 | 46,619 |
Profit sharing and retirement expense | 29,089 | 27,956 |
Marketing expenses | 35,969 | 39,175 |
Freight | 16,384 | 15,531 |
Other accrued expenses | 102,004 | 100,447 |
Accounts payable and accrued expenses | $ 424,405 | $ 453,754 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Jan. 06, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long-term debt | $ 190,477 | $ 197,791 | |
Less: current portion | (5,477) | (55) | |
Long-term debt | 185,000 | 197,736 | |
Long-term Debt, by Maturity [Abstract] | |||
2,016 | 5,477 | ||
2,017 | 35,000 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
Thereafter | 150,000 | ||
Variable rate long-term debt | 40,000 | 48,000 | |
Long-term debt, fair value | 148,000 | 154,000 | |
Notes Payable to Banks [Member] | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long-term debt | $ 40,300 | $ 47,700 | |
Long-term Debt, by Maturity [Abstract] | |||
Notes payable effective interest rate | 1.50% | 1.80% | |
Senior Notes Due In 2016 [Member] | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long-term debt | $ 150,000 | $ 150,000 | |
Long-term Debt, by Maturity [Abstract] | |||
Senior notes state interest rate | 5.54% | 5.54% | |
Other Notes and Amounts [Member] | |||
Long-term Debt, Current and Noncurrent [Abstract] | |||
Long-term debt | $ 177 | $ 91 | |
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||
Long-term Debt, by Maturity [Abstract] | |||
Accordion feature | $ 150,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 2.8 | $ 4.2 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0.1 | 0 | $ 0.1 |
Penalties and interest accrued | 0.1 | $ 0.2 | |
Undistributed Earnings of Foreign Subsidiaries | 33.9 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 10.3 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 6.4 | ||
Tax credit carryforward, amount | $ 2.2 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Current: | |||
Federal | $ 27,768 | $ 22,738 | $ 12,077 |
State | 5,258 | 4,623 | 1,036 |
Foreign | 1,713 | 972 | 2,153 |
Current provision | 34,739 | 28,333 | 15,266 |
Deferred: | |||
Federal | 15,348 | 13,692 | 16,614 |
State | 2,217 | 2,013 | 2,558 |
Foreign | (540) | (262) | (1,100) |
Deferred provision | 17,025 | 15,443 | 18,072 |
Total income tax expense | $ 51,764 | $ 43,776 | $ 33,338 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax expense | $ 55,020 | $ 36,836 | $ 33,957 |
State taxes, net of federal tax effect | 4,269 | 4,118 | 2,469 |
Credit for increasing research activities | (3,320) | (2,569) | (1,338) |
Deduction related to domestic production activities | (3,320) | (1,751) | (1,396) |
Valuation allowance | 0 | 2,474 | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 0 | 4,298 | 0 |
Uncertain tax positions | (1,344) | 1,099 | 773 |
Other - net | 459 | (729) | (1,127) |
Total income tax expense | $ 51,764 | $ 43,776 | $ 33,338 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Net current deferred tax assets: | ||
Allowance for doubtful accounts | $ 1,089 | $ 1,240 |
Compensation | 15,491 | 16,817 |
Inventory differences | 4,497 | 5,691 |
Marketing accrual | 1,355 | 1,454 |
Stock-based compensation | 11,923 | 9,906 |
Accrued post-retirement benefit obligations | 6,682 | 6,341 |
OCI tax effected items | 3,169 | 3,887 |
Vacation accrual | 4,181 | 3,875 |
Warranty Accrual | 6,052 | 6,023 |
Other – net | 12,167 | 10,774 |
Total deferred tax assets | 66,606 | 66,008 |
Net long-term deferred tax liabilities: | ||
Deferred income | (4,907) | (4,836) |
Goodwill | (79,471) | (80,366) |
Prepaids | (7,876) | (7,724) |
Tax over book depreciation | (59,308) | (41,770) |
Total deferred tax liabilities | (151,562) | (134,696) |
Valuation allowance | (3,978) | (3,413) |
Total net deferred tax liabilities | 88,934 | 72,101 |
Current net deferred tax assets | 0 | 17,310 |
Long term net deferred tax liabilities | $ (88,934) | $ (89,411) |
Income Taxes Income Taxes (Valu
Income Taxes Income Taxes (Valuation allowance for Deferred Tax Asset) (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of period | $ 3,978 | $ 3,413 | $ 1,579 | $ 1,580 |
Charged to costs and expenses | 0 | 2,474 | 0 | |
Adjustments to balance sheet | 565 | (640) | (1) | |
Balance at end of period | $ 3,978 | $ 3,413 | $ 1,579 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits, beginning of period | $ 4,250 | $ 2,809 |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 0 | 400 |
Increases (decreases) in positions taken in a prior period | 82 | 406 |
Decreases in positions taken in a prior period | (1,611) | (124) |
Increases in positions taken in a current period | 793 | 1,422 |
Decrease due to settlements | 0 | 0 |
Decrease due to lapse of statute of limitations | (656) | (663) |
Unrecognized tax benefits, end of period | $ 2,858 | $ 4,250 |
Fair Value Measurements of Fi71
Fair Value Measurements of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jan. 02, 2016 | Jan. 03, 2015 |
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | $ (1,252) | $ (1,374) |
Government Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 9,663 | 9,835 |
Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 2,405 | 2,205 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | (1,252) | (1,374) |
Significant Other Observable Inputs (Level 2) [Member] | Government Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 9,663 | 9,835 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 2,405 | 2,205 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Derivative financial instruments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Government Securities [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | ||
Assets Fair Value Disclosure [Abstract] | ||
Available-for-sale securities, fair value disclosure | $ 0 | $ 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | 3 Months Ended | 12 Months Ended | 126 Months Ended | |||||
Jan. 02, 2016USD ($)$ / sharesshares | Jan. 02, 2016USD ($)$ / sharesshares | Jan. 03, 2015USD ($)$ / sharesshares | Dec. 28, 2013USD ($)$ / sharesshares | Dec. 29, 2012hours | Jun. 12, 2009shares | May. 31, 2007shares | Jan. 01, 2007shares | |
Schedule of Shareholders' Equity [Line Items] | ||||||||
Treasury stock, shares acquired | 550,000 | 1,665,850 | 740,000 | |||||
Director Plan [Member] | ||||||||
Schedule of Shareholders' Equity [Line Items] | ||||||||
Shares available for future issuance | 300,000 | |||||||
Corporation common stock, issued | 20,146 | 27,272 | 26,520 | |||||
Purchase Plan [Member] | ||||||||
Schedule of Shareholders' Equity [Line Items] | ||||||||
Shares available for future issuance | 1,000,000 | 800,000 | ||||||
Rights to purchase stock, minimum working hours per week | hours | 20 | |||||||
Rights to purchase stock, minimum working months per year | 5 months | |||||||
Price of repurchased stock as percent of closing price on the exercise date | 85.00% | 85.00% | ||||||
Maximum amount fair value for purchase of common stock | $ | $ 25,000 | |||||||
Shares of common stock issued | 73,874 | 84,065 | 86,291 | |||||
Common stock issued at average price | $ / shares | $ 32.18 | $ 32.18 | $ 27.92 | $ 25.63 | ||||
Shares available for future issuance | 373,268 | 373,268 | ||||||
Derivative Financial Instruments [Member] | ||||||||
Schedule of Shareholders' Equity [Line Items] | ||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | $ | $ 1,252,000 | $ 1,627,000 | $ 114,000 | $ (154,000) | ||||
Derivative Financial Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
Schedule of Shareholders' Equity [Line Items] | ||||||||
Amount of ineffective hedge | $ | $ (1,627,000) | $ (114,000) | ||||||
Officer [Member] | ||||||||
Schedule of Shareholders' Equity [Line Items] | ||||||||
Change in control percentage | 20.00% | |||||||
Percent of board members | 0.3333 | |||||||
Number of times annual salary | 200.00% | |||||||
Term of employment agreement | 2 years | |||||||
Average number of years for bonus payment | 200.00% | |||||||
Corporation's Chairman, President and CEO [Member] | ||||||||
Schedule of Shareholders' Equity [Line Items] | ||||||||
Number of times annual salary | 300.00% |
Shareholders' Equity (Common an
Shareholders' Equity (Common and Preferred Stocks) (Details) - $ / shares | Jan. 02, 2016 | Jan. 03, 2015 |
Equity [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 44,158,256 | 44,165,676 |
Common stock, shares outstanding | 44,158,256 | 44,165,676 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Shareholders' Equity (Accumulat
Shareholders' Equity (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (5,375) | |||
Ending Balance | $ (5,186) | (5,186) | $ (5,375) | |
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward] | ||||
Beginning Balance | 2,223 | 2,913 | $ 5,475 | |
Other comprehensive income before reclassifications | (1,901) | (690) | (2,562) | |
Less: Taxes | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | |
Ending Balance | 322 | 322 | 2,223 | 2,913 |
Unrealized Gains (Losses) on Marketable Securities [Member] | ||||
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward] | ||||
Beginning Balance | 37 | 81 | 205 | |
Other comprehensive income before reclassifications | (60) | (67) | (191) | |
Less: Taxes | (21) | (23) | (67) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | |
Ending Balance | (2) | (2) | 37 | 81 |
Pension Postretirement Liability [Member] | ||||
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6,763) | (2,140) | (4,291) | |
Other comprehensive income before reclassifications | 1,975 | (7,280) | 3,389 | |
Less: Taxes | 718 | (2,657) | 1,312 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 74 | |
Ending Balance | (5,506) | (5,506) | (6,763) | (2,140) |
Derivative Financial Instruments [Member] | ||||
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward] | ||||
Beginning Balance | (872) | 111 | (76) | |
Other comprehensive income before reclassifications | (1,188) | (1,728) | 538 | |
Less: Taxes | (433) | (631) | 197 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,252 | 1,627 | 114 | (154) |
Ending Balance | 0 | 0 | (872) | 111 |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive (Loss) Income, Net of Tax [Roll Forward] | ||||
Beginning Balance | (5,375) | 965 | 1,313 | |
Other comprehensive income before reclassifications | (1,174) | (9,765) | 1,174 | |
Less: Taxes | 264 | (3,311) | 1,442 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,627 | 114 | (80) | |
Ending Balance | $ (5,186) | $ (5,186) | $ (5,375) | $ 965 |
Shareholders' Equity (Reclassif
Shareholders' Equity (Reclassifications from Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling and administrative expenses | $ (165,772) | $ (170,371) | $ (167,278) | $ (168,704) | $ (182,341) | $ (166,216) | $ (155,288) | $ (145,210) | $ (672,125) | $ (649,055) | $ (606,512) |
Tax (expense) or benefit | $ (14,397) | $ (18,619) | $ (13,680) | $ (5,068) | $ (15,959) | $ (17,372) | $ (5,203) | $ (5,242) | (51,764) | (43,776) | $ (33,338) |
Derivative Financial Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Selling and administrative expenses | (2,562) | (180) | |||||||||
Tax (expense) or benefit | 935 | 66 | |||||||||
Net of tax | $ (1,627) | $ (114) |
Shareholders' Equity (Dividends
Shareholders' Equity (Dividends Declared and Paid per Share) (Details) - $ / shares | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Equity [Abstract] | |||
Common shares | $ 1.045 | $ 0.99 | $ 0.96 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 9.1 | $ 8.6 | $ 7.5 |
Income tax benefit recognized | $ 3.1 | $ 3.1 | $ 2.6 |
Weighted-average grant-date fair value of option granted | $ 18.45 | $ 10.48 | $ 10.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 0.2 | $ 0.3 | $ 2.8 |
The Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 3.7 | ||
Exercised period | 10 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 3.3 | ||
Nonvested stock, weighted average period, in years | 1 year 2 months 12 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1 | ||
Nonvested stock, weighted average period, in years | 7 months 6 days | ||
Cliff Vesting [Member] | The Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years | 5 years | 5 years |
Expected volatility: | |||
Range used, minimum | 48.25% | ||
Range used, maximum | 48.34% | ||
Weighted-average | 43.54% | 42.49% | 50.39% |
Expected dividends yield: | |||
Weighted-average | 1.94% | 2.76% | 3.02% |
Risk-Free Interest Rate [Abstract] | |||
Range used, minimum | 0.90% | ||
Range used, maximum | 1.17% | ||
Range used | 1.69% | 1.54% | 0.93% |
Minimum [Member] | |||
Expected dividends yield: | |||
Range used | 2.90% | ||
Maximum [Member] | |||
Expected dividends yield: | |||
Range used | 3.61% |
Stock-Based Compensation (Outst
Stock-Based Compensation (Outstanding Stock Option and RSUs Activity) (Details) - $ / shares | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance, Number of Shares | 3,335,445 | 3,630,567 | 3,456,514 |
Outstanding, Weighted-Average Exercise Price, Beginning Balance | $ 29.93 | $ 29.94 | $ 27.96 |
Granted, Number of Shares | 350,038 | 536,275 | 611,599 |
Granted, Weighted-Average Exercise Price | $ 51.54 | $ 34.78 | $ 31.79 |
Exercised, Number of Shares | (302,635) | (542,837) | (394,476) |
Exercised, Weighted-Average Exercise Price | $ 30.22 | $ 28.53 | $ 14.86 |
Forfeited or Expired, Number of Shares | (24,525) | (288,560) | (43,070) |
Forfeited or Expired, Weighted-Average Exercise Price | $ 39.14 | $ 38.55 | $ 35.05 |
Outstanding, Ending Balance, Number of Shares | 3,358,323 | 3,335,445 | 3,630,567 |
Outstanding, Weighted-Average Exercise Price, Ending Balance | $ 32.09 | $ 29.93 | $ 29.94 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning Balance, Shares | 26,026 | 24,526 | 157,219 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price | $ 27.76 | $ 23.01 | $ 21.71 |
Granted, Shares | 23,000 | 15,500 | 0 |
Granted, Weighted-Average Exercise Price | $ 51.54 | $ 32.23 | $ 0 |
Vested, Shares | (10,526) | (14,000) | (132,693) |
Vested, Weighted-Average Grant-Date Fair Value | $ 21.19 | $ 21.47 | $ 21.47 |
Forfeited, Shares | 0 | 0 | 0 |
Forfeited, Weighted-Average Grant-Date Fair Value | $ 0 | $ 0 | $ 0 |
Outstanding, Ending Balance, Shares | 38,500 | 26,026 | 24,526 |
Outstanding, Ending Balance, Weighted-Average Exercise Price | $ 43.77 | $ 27.76 | $ 23.01 |
Stock-Based Compensation (Nonve
Stock-Based Compensation (Nonvested Shares Activity) (Details) - Restricted Stock [Member] | 12 Months Ended |
Jan. 02, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, Beginning Balance, Shares | shares | 2,286,997 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price | $ / shares | $ 10.14 |
Granted, Shares | shares | 350,038 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | $ 22.66 |
Vested, Shares | shares | (480,585) |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | $ 11.56 |
Forfeited, Shares | shares | (17,726) |
Forfeited, Weighted-Average Grant-Date Fair Value | $ / shares | $ 11.63 |
Outstanding, Ending Balance, Shares | shares | 2,138,724 |
Outstanding, Ending Balance, Weighted-Average Exercise Price | $ / shares | $ 11.86 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Vested or Expected to Vest and are Exercisable) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 02, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vested or expected to vest, Number | shares | 2,084,026 |
Vested or expected to vest, Weighted-Average Exercise Price | $ / shares | $ 33.39 |
Vested or expected to vest, Weighted-Average Remaining Life inYears | 7 years 3 months 18 days |
Vested or expected to vest, Aggregate Intrinsic Value | $ | $ 13,155 |
Exercisable, Number | shares | 1,219,599 |
Exercisable, Weighted-Average Exercise Price | $ / shares | $ 29.30 |
Exercisable, Weighted-Average Remaining Life inYears | 3 years 8 months 12 days |
Exercisable, Aggregate Intrinsic Value | $ | $ 13,078 |
Stock-Based Compensation (Other
Stock-Based Compensation (Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 5,554 | $ 5,735 | $ 1,127 |
Total intrinsic value of options exercised | 6,412 | 8,389 | 6,445 |
Cash received from exercise of stock options | 9,145 | 15,489 | 5,862 |
Tax benefit realized from exercise of stock options | $ 2,111 | $ 2,982 | $ 2,291 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Anual contributions by employer | $ 29,100 | $ 26,800 | $ 23,300 |
Stock contributions by employer | 6,800 | 6,400 | 6,100 |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | $ 281 | $ 167 | $ 185 |
Postretirement Health Care (Nar
Postretirement Health Care (Narrative) (Details) - Other Postretirement Benefit Plan [Member] | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates at fiscal year-end | 4.20% | 3.80% | 4.60% |
Discount rate, used to determine net periodic benefit cost | 4.20% |
Postretirement Health Care (Sch
Postretirement Health Care (Schedule of Cost of Retirement Plans) (Details) - Other Postretirement Benefit Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Change in benefit obligation | ||
Benefit obligation at beginning of year | $ 21,972 | $ 16,448 |
Service cost | 803 | 504 |
Interest cost | 816 | 735 |
Benefits paid | (1,009) | (1,280) |
Actuarial (gain)/loss | (1,698) | 5,565 |
Benefit obligation at end of year | 20,884 | 21,972 |
Change in plan assets | ||
Fair value at beginning of year | 0 | 0 |
Actual return on assets | 0 | 0 |
Employer contribution | 1,009 | 1,280 |
Transferred out | 0 | 0 |
Fair value at end of year | 0 | 0 |
Funded Status of Plan | (20,884) | (21,972) |
Amounts recognized in the Statement of Financial Position consist of: | ||
Current liabilities | 1,014 | 1,004 |
Noncurrent liabilities | 19,870 | 20,968 |
Amounts recognized in Accumulated Other Comprehensive Income (before tax) consist of: | ||
Actuarial (gain)/loss | 2,730 | 4,665 |
Transition (asset)/obligation | 0 | 0 |
Prior service cost | 0 | 0 |
Change in Accumulated Other Comprehensive Income (before tax): | ||
Change in accumulated other comprehensive income (before tax), beginning of period | 4,665 | (900) |
Actuarial (gain)/loss | $ (1,698) | 5,565 |
Amortization of actuarial gain or loss | 0 | |
Amortization of transition amount | $ (237) | 0 |
Amortization of prior service cost | 0 | |
Change in accumulated other comprehensive income (before tax), end of period | $ 2,730 | $ 4,665 |
Postretirement Health Care (Est
Postretirement Health Care (Estimated Future Benefit Payments) (Details) - Other Postretirement Benefit Plan [Member] $ in Thousands | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fiscal 2,016 | $ 1,014 |
Fiscal 2,017 | 1,020 |
Fiscal 2,018 | 1,018 |
Fiscal 2,019 | 1,042 |
Fiscal 2,020 | 1,076 |
Fiscal 2021 – 2025 | 6,375 |
Expected Contributions During Fiscal 2016 | $ 1,014 |
Postretirement Health Care (Com
Postretirement Health Care (Components of Net Periodic Postretirement Benefit Cost for 2013) (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] $ in Thousands | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Service cost | $ 735 |
Interest cost | 846 |
Amortization of net (gain)/loss | 62 |
Net periodic postretirement benefit cost/(income) | $ 1,643 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Leases [Abstract] | |||
Present value of net minimum lease payments, including current maturities of $105 | $ 105 | ||
Operating Leases | |||
Operating leases, 2016 | 30,241 | ||
Operating leases, 2017 | 23,640 | ||
Operating leases, 2018 | 16,684 | ||
Operating leases, 2019 | 11,422 | ||
Operating leases, 2020 | 6,451 | ||
Thereafter | 10,268 | ||
Total minimum lease payments | 98,706 | ||
Capitalized Leases, Assets | |||
Office equipment | 0 | $ 570 | |
Less: allowances for depreciation | 0 | 460 | |
Capital leased assets, net | 0 | 110 | |
Rent expense | $ 34,000 | $ 48,000 | $ 41,500 |
Guarantees, Commitments and C89
Guarantees, Commitments and Contingencies (Details) $ in Millions | Jan. 02, 2016USD ($) |
Standby Letters of Credit [Member] | |
Loss Contingencies [Line Items] | |
Letters of credit used to back insurance policies and other obligations | $ 10 |
Reportable Segment Informatio90
Reportable Segment Information (Business Segment Information) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 02, 2016USD ($) | Oct. 03, 2015USD ($) | Jul. 04, 2015USD ($) | Apr. 04, 2015USD ($) | Jan. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($) | Mar. 29, 2014USD ($) | Jan. 02, 2016USD ($)Segment | Jan. 03, 2015USD ($) | Dec. 28, 2013USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of business segments | Segment | 2 | |||||||||||
Net sales | $ 596,866 | $ 615,850 | $ 568,226 | $ 523,477 | $ 646,661 | $ 614,690 | $ 509,143 | $ 452,201 | $ 2,304,419 | $ 2,222,695 | $ 2,059,964 | |
Operating profit | 214,755 | 164,119 | 144,001 | |||||||||
Income before income taxes | 46,628 | $ 59,465 | $ 37,557 | $ 13,520 | 22,937 | $ 50,868 | $ 14,868 | $ 16,258 | 157,170 | 104,931 | 96,707 | |
Depreciation and amortization expense | 57,564 | 56,722 | 46,621 | |||||||||
Capital expenditures | 114,966 | 112,713 | 78,895 | |||||||||
Identifiable assets | 1,263,925 | 1,239,334 | 1,263,925 | 1,239,334 | 1,134,705 | |||||||
Office Furniture [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,777,804 | 1,739,049 | 1,685,205 | |||||||||
Operating profit | [1] | 136,593 | 87,053 | 97,339 | ||||||||
Depreciation and amortization expense | 42,415 | 45,891 | 36,992 | |||||||||
Capital expenditures | 64,850 | 62,696 | 51,954 | |||||||||
Identifiable assets | 739,915 | 724,293 | 739,915 | 724,293 | 722,697 | |||||||
Segment reporting information restructuring and impairment charges | 11,700 | 33,000 | 300 | |||||||||
Restructuring costs | 400 | 8,800 | ||||||||||
Hearth Products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 526,615 | 483,646 | 374,759 | |||||||||
Operating profit | [2] | 78,162 | 77,066 | 46,662 | ||||||||
Depreciation and amortization expense | 8,430 | 5,415 | 5,288 | |||||||||
Capital expenditures | 11,078 | 6,342 | 4,220 | |||||||||
Identifiable assets | 341,813 | 341,315 | 341,813 | 341,315 | 255,978 | |||||||
Restructuring costs | 900 | |||||||||||
Unallocated Amount to Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Unallocated corporate expense | (57,585) | (59,188) | (47,294) | |||||||||
Depreciation and amortization expense | 6,719 | 5,416 | 4,341 | |||||||||
Capital expenditures | 39,038 | 43,675 | 22,721 | |||||||||
Identifiable assets | $ 182,197 | $ 173,726 | $ 182,197 | $ 173,726 | $ 156,030 | |||||||
[1] | Included in operating profit for the office furniture segment are pretax charges of $11.7 million, $33.0 million and $0.3 million, for closing of facilities and impairment charges in 2015, 2014 and 2013, respectively. | |||||||||||
[2] | Included in operating profit for the hearth products segment are pretax charges of $0.9 million related to exiting a line of business in 2015. |
Reportable Segment Informatio91
Reportable Segment Information (Net Sales By Product Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 596,866 | $ 615,850 | $ 568,226 | $ 523,477 | $ 646,661 | $ 614,690 | $ 509,143 | $ 452,201 | $ 2,304,419 | $ 2,222,695 | $ 2,059,964 |
Systems and Storage [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,140,369 | 1,156,170 | 1,132,885 | ||||||||
Seating [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 561,392 | 498,389 | 469,220 | ||||||||
Other [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 76,043 | 84,490 | 83,100 | ||||||||
Hearth Products [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 526,615 | $ 483,646 | $ 374,759 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ in Millions | Feb. 17, 2016 | Jan. 29, 2016 |
Subsequent Event [Line Items] | ||
Annual sales of company acquired | $ 27 | |
Acquisition cost | $ 34 | |
Facility Exit Costs [Member] | ||
Subsequent Event [Line Items] | ||
Estimated annual savings | $ 9 | |
Closure and consolidation charges | $ 8.9 |
Summary of Quarterly Results 93
Summary of Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net sales | $ 596,866 | $ 615,850 | $ 568,226 | $ 523,477 | $ 646,661 | $ 614,690 | $ 509,143 | $ 452,201 | $ 2,304,419 | $ 2,222,695 | $ 2,059,964 | ||
Cost of products sold | 371,723 | 384,219 | 362,102 | 338,977 | 418,698 | 394,758 | 328,010 | 297,029 | 1,457,021 | 1,438,495 | 1,344,672 | ||
Gross profit | 225,143 | 231,631 | 206,124 | 184,500 | 227,963 | 219,932 | 181,133 | 155,172 | 847,398 | 784,200 | 715,292 | ||
Selling and administrative expenses | 165,772 | 170,371 | 167,278 | 168,704 | 182,341 | 166,216 | 155,288 | 145,210 | 672,125 | 649,055 | 606,512 | ||
(Gain) loss on sale of assets | (195) | 0 | 0 | 0 | (977) | 0 | (1,346) | (8,400) | (195) | (10,723) | 2,460 | ||
Restructuring related charges | (11,803) | (172) | 560 | (377) | (21,778) | (987) | (10,282) | 28 | (11,792) | (33,019) | (333) | ||
Operating income | 47,763 | 61,088 | 39,406 | 15,419 | 24,821 | 52,729 | 16,909 | 18,390 | 163,676 | 112,849 | 105,987 | ||
Interest income (expense) – net | (1,135) | (1,623) | (1,849) | (1,899) | (1,884) | (1,861) | (2,041) | (2,132) | |||||
Income (loss) before income taxes | 46,628 | 59,465 | 37,557 | 13,520 | 22,937 | 50,868 | 14,868 | 16,258 | 157,170 | 104,931 | 96,707 | ||
Income taxes | 14,397 | 18,619 | 13,680 | 5,068 | 15,959 | 17,372 | 5,203 | 5,242 | 51,764 | 43,776 | 33,338 | ||
Net income (loss) | 32,231 | 40,846 | 23,877 | 8,452 | 6,978 | 33,496 | 9,665 | 11,016 | 105,406 | 61,155 | 63,369 | ||
Less: net income attributable to the noncontrolling interest | 0 | (2) | (2) | (26) | (104) | (92) | (40) | (80) | (30) | (316) | (314) | ||
Net income attributable to HNI Corporation | $ 32,231 | $ 40,848 | $ 23,879 | $ 8,478 | $ 7,082 | $ 33,588 | $ 9,705 | $ 11,096 | $ 105,436 | $ 61,471 | $ 63,683 | ||
Net income (loss) attributable to HNI Corporation per common share – basic | $ 0.73 | $ 0.92 | $ 0.54 | $ 0.19 | $ 0.16 | $ 0.75 | $ 0.22 | $ 0.25 | $ 2.38 | $ 1.37 | $ 1.41 | ||
Weighted-average common shares outstanding – basic | 44,158,000 | 44,263,000 | 44,416,000 | 44,304,000 | 44,324,000 | 44,690,000 | 45,020,000 | 45,039,000 | 44,285,298 | 44,759,716 | 45,250,665 | ||
Net income attributable to HNI Corporation per common share – diluted | $ 0.71 | $ 0.90 | $ 0.52 | $ 0.19 | $ 0.16 | $ 0.74 | $ 0.21 | $ 0.24 | $ 2.32 | $ 1.35 | $ 1.39 | $ 1.07 | $ 1.01 |
Weighted-average common shares outstanding – diluted | 45,199,000 | 45,403,000 | 45,621,000 | 45,524,000 | 45,202,000 | 45,611,000 | 45,868,000 | 45,838,000 | 45,440,653 | 45,578,872 | 45,956,280 | ||
As a Percentage of Net Sales | |||||||||||||
Net sales, percent | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |||||
Gross profit, percent | 37.70% | 37.60% | 36.30% | 35.20% | 35.30% | 35.80% | 35.60% | 34.30% | |||||
Selling and administrative expenses, percent | 27.80% | 27.70% | 29.40% | 32.20% | 28.20% | 27.00% | 30.50% | 32.10% | |||||
(Gain) loss on sale of assets, percent | (0.20%) | 0.00% | (0.30%) | (1.90%) | |||||||||
Restructuring related charges, percent | 2.00% | 0.00% | (0.10%) | 0.10% | 3.40% | 0.20% | 2.00% | 0.00% | |||||
Operating income (loss), percent | 8.00% | 9.90% | 6.90% | 2.90% | 3.80% | 8.60% | 3.30% | 4.10% | |||||
Income taxes, percent | 2.40% | 3.00% | 2.40% | 1.00% | 2.50% | 2.80% | 1.00% | 1.20% | |||||
Net income (loss) attributable to HNI Corporation, percent | 5.40% | 6.60% | 4.20% | 1.60% | 1.10% | 5.50% | 1.90% | 2.50% |
Investor Information (Details)
Investor Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jan. 02, 2016$ / shares | Oct. 03, 2015$ / shares | Jul. 04, 2015$ / shares | Apr. 04, 2015$ / shares | Jan. 03, 2015$ / shares | Sep. 27, 2014$ / shares | Jun. 28, 2014$ / shares | Mar. 29, 2014$ / shares | Dec. 28, 2013$ / shares | Sep. 28, 2013$ / shares | Jun. 29, 2013$ / shares | Mar. 30, 2013$ / shares | Jan. 02, 2016$ / shares | Jan. 03, 2015$ / shares | Dec. 28, 2013$ / shares | Dec. 29, 2012$ / shares | Dec. 31, 2011$ / shares | |
Investor Information [Abstract] | |||||||||||||||||
Market Price, High | $ 47.68 | $ 52.52 | $ 57.74 | $ 56.47 | $ 52.90 | $ 40.43 | $ 39.29 | $ 39.42 | $ 40.10 | $ 40.73 | $ 38.53 | $ 35.74 | $ 57.74 | $ 52.90 | $ 40.73 | $ 32.02 | $ 36.48 |
Market Price, Low | 35.53 | 41.29 | 46.19 | 38.01 | 34.75 | 34.62 | 31.61 | 31 | 32.83 | 32.38 | 31.45 | 28.28 | 35.53 | 31 | 28.28 | 21.57 | 15.78 |
Dividends per Share | 0.265 | 0.265 | 0.265 | 0.25 | 0.25 | 0.25 | 0.25 | 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | 1.045 | 0.99 | 0.96 | ||
Diluted Earnings per Share | $ 0.71 | $ 0.90 | $ 0.52 | $ 0.19 | $ 0.16 | $ 0.74 | $ 0.21 | $ 0.24 | $ 2.32 | $ 1.35 | $ 1.39 | $ 1.07 | $ 1.01 | ||||
Price/Earnings Ratio, High | 25 | 39 | 29 | 30 | 36 | ||||||||||||
Price/Earnings Ratio, Low | 15 | 23 | 20 | 20 | 16 | ||||||||||||
Price/Earnings Ratio, High, Five-Years Average | 32 | ||||||||||||||||
Price/Earnings Ratio, Low, Five-Years Average | 19 |