Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 03, 2023 | Jul. 02, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-14225 | ||
Entity Registrant Name | HNI Corporation | ||
Entity Incorporation, State or Country Code | IA | ||
Entity Tax Identification Number | 42-0617510 | ||
Entity Address, Address Line One | 600 East Second Street | ||
Entity Address, Address Line Two | P. O. Box 1109 | ||
Entity Address, City or Town | Muscatine | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 52761-0071 | ||
City Area Code | 563 | ||
Local Phone Number | 272-7400 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | HNI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 1,031,879,981 | ||
Entity Common Stock, Share Outstanding | 41,407,021 | ||
Documents Incorporated by Reference | Portions of the Registrant's Definitive Proxy Statement on Schedule 14A for the Annual Meeting of Shareholders to be held on May 17, 2023 are incorporated by reference into Part III. | ||
Entity Central Index Key | 0000048287 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Chicago, IL |
Auditor Firm ID | 185 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 2,361.8 | $ 2,184.4 | $ 1,955.4 |
Cost of sales | 1,526.9 | 1,427 | 1,234.2 |
Gross profit | 834.9 | 757.4 | 721.1 |
Selling and administrative expenses | 723.4 | 665.6 | 620.9 |
Gain on sale of subsidiary | (50.4) | 0 | 0 |
Restructuring and impairment charges | 6.7 | 6.3 | 38.8 |
Operating income | 155.2 | 85.4 | 61.4 |
Interest expense, net | 8.8 | 7.2 | 7 |
Income before income taxes | 146.4 | 78.3 | 54.4 |
Income tax expense | 22.5 | 18.5 | 12.5 |
Net income | 123.9 | 59.8 | 41.9 |
Less: Net income (loss) attributable to non-controlling interest | 0 | 0 | 0 |
Net income attributable to HNI Corporation | $ 123.9 | $ 59.8 | $ 41.9 |
Average number of common shares outstanding – basic (in shares) | 41.7 | 43.4 | 42.7 |
Net income attributable to HNI Corporation per common share – basic (in dollars per share) | $ 2.97 | $ 1.38 | $ 0.98 |
Average number of common shares outstanding - diluted (in shares) | 42.2 | 44 | 43 |
Net income attributable to HNI Corporation per common share – diluted (in dollars per share) | $ 2.94 | $ 1.36 | $ 0.98 |
Foreign currency translation adjustments | $ (5.7) | $ 0.4 | $ 1.8 |
Change in unrealized gains (losses) on marketable securities, net of tax | (0.7) | (0.3) | 0.3 |
Change in pension and post-retirement liability, net of tax | 4.3 | 1.2 | (0.9) |
Change in derivative financial instruments, net of tax | 0.8 | 1 | (2.3) |
Other comprehensive income (loss), net of tax | (1.3) | 2.4 | (1.1) |
Comprehensive income | 122.6 | 62.2 | 40.8 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 0 | 0 | 0 |
Comprehensive income attributable to HNI Corporation | $ 122.6 | $ 62.2 | $ 40.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 17.4 | $ 52.3 |
Short-term investments | 2 | 1.4 |
Receivables | 218.4 | 240 |
Allowance for doubtful accounts | (3.2) | (2.8) |
Inventories, net | 180.1 | 181.6 |
Prepaid expenses and other current assets | 54.4 | 51.1 |
Total Current Assets | 469.2 | 523.5 |
Property, Plant, and Equipment: | ||
Land and land improvements | 30.8 | 30.9 |
Buildings | 275.4 | 294.5 |
Machinery and equipment | 602.6 | 593.6 |
Construction in progress | 34.2 | 29.7 |
Property, Plant, and Equipment | 942.9 | 948.7 |
Less accumulated depreciation | (590.3) | (581.9) |
Net Property, Plant, and Equipment | 352.5 | 366.8 |
Right-of-use - Finance Leases | 11.4 | 10.2 |
Right-of-use - Operating Leases | 88.4 | 82.9 |
Goodwill and Other Intangible Assets, net | 439.8 | 471.5 |
Other Assets | 53.2 | 43.1 |
Total Assets | 1,414.5 | 1,497.9 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 367.7 | 473.8 |
Current maturities of debt | 1.3 | 3.2 |
Current maturities of other long-term obligations | 2.1 | 3.9 |
Current lease obligations - Finance | 3.7 | 2.8 |
Current lease obligations - Operating | 20.3 | 22.8 |
Total Current Liabilities | 395.1 | 506.4 |
Long-Term Debt | 188.8 | 174.6 |
Long-Term Lease Obligations - Finance | 7.7 | 7.4 |
Long-Term Lease Obligations - Operating | 78.9 | 63.8 |
Other Long-Term Liabilities | 66.3 | 80.7 |
Deferred Income Taxes | 61 | 75 |
HNI Corporation shareholders’ equity: | ||
Preferred stock - $1 par value, authorized 2.0 million shares, no shares outstanding | 0 | 0 |
Common stock - $1 par value, authorized 200.0 million shares, outstanding: December 31, 2022 - 41.4 million shares; January 1, 2022 - 42.6 million shares | 41.4 | 42.6 |
Additional paid-in capital | 49.1 | 39.2 |
Retained earnings | 534 | 514.6 |
Accumulated other comprehensive loss | (8) | (6.8) |
Total HNI Corporation shareholders’ equity | 616.5 | 589.6 |
Non-controlling interest | 0.3 | 0.3 |
Total Equity | 616.8 | 590 |
Total Liabilities and Equity | $ 1,414.5 | $ 1,497.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2 | 2 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 200 | 200 |
Common stock, shares outstanding (in shares) | 41.4 | 42.6 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Dividend Declared | Dividend Paid | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Dividend Declared | Retained Earnings Dividend Paid | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning Balance at Dec. 28, 2019 | $ 584.4 | $ (0.1) | $ 42.6 | $ 19.8 | $ 529.7 | $ (0.1) | $ (8.1) | $ 0.3 | ||||
Comprehensive income: | ||||||||||||
Net income (loss) | 41.9 | 41.9 | 0 | |||||||||
Other comprehensive income (loss), net of tax | (1.1) | (1.1) | ||||||||||
Dividends | $ (0.2) | $ (52.1) | $ (0.2) | $ (52.1) | ||||||||
Common shares – treasury: | ||||||||||||
Shares purchased | (6.4) | (0.2) | (5) | (1.2) | ||||||||
Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax | 24.4 | 0.5 | 23.8 | |||||||||
Ending Balance at Jan. 02, 2021 | 590.7 | 42.9 | 38.7 | 518 | (9.2) | 0.3 | ||||||
Comprehensive income: | ||||||||||||
Net income (loss) | 59.8 | 59.8 | 0 | |||||||||
Other comprehensive income (loss), net of tax | 2.4 | 2.4 | ||||||||||
Dividends | (1) | (53.7) | (1) | (53.7) | ||||||||
Common shares – treasury: | ||||||||||||
Shares purchased | (60.4) | (1.5) | (50.4) | (8.5) | ||||||||
Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax | 52.2 | 1.2 | 51 | |||||||||
Ending Balance at Jan. 01, 2022 | 590 | 42.6 | 39.2 | 514.6 | (6.8) | 0.3 | ||||||
Comprehensive income: | ||||||||||||
Net income (loss) | 123.9 | 123.9 | 0 | |||||||||
Other comprehensive income (loss), net of tax | (1.3) | (1.3) | ||||||||||
Dividends | $ (0.4) | $ (53) | $ (0.4) | $ (53) | ||||||||
Common shares – treasury: | ||||||||||||
Shares purchased | (63.9) | (1.7) | (11.1) | (51.1) | ||||||||
Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax | 21.5 | 0.5 | 21 | |||||||||
Ending Balance at Dec. 31, 2022 | $ 616.8 | $ 41.4 | $ 49.1 | $ 534 | $ (8) | $ 0.3 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.270 | $ 1.235 | $ 1.220 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Net Cash Flows From (To) Operating Activities: | |||
Net income | $ 123.9 | $ 59.8 | $ 41.9 |
Non-cash items included in net income: | |||
Depreciation and amortization | 84.2 | 83.1 | 77.7 |
Other post-retirement and post-employment benefits | 1.3 | 1.3 | 1.5 |
Stock-based compensation | 9 | 12.9 | 7.8 |
Deferred income taxes | (15.3) | (0.4) | (12) |
Restructuring and impairment charges | 6.2 | 5.8 | 39.6 |
Gain on sale of subsidiary | (50.4) | 0 | 0 |
Other – net | 2.7 | 4 | 3.1 |
Net increase (decrease) in cash from operating assets and liabilities | (72.7) | (34.4) | 47.2 |
Increase (decrease) in other liabilities | (7.7) | (0.5) | 7.7 |
Net cash flows from (to) operating activities | 81.2 | 131.6 | 214.5 |
Net Cash Flows From (To) Investing Activities: | |||
Capital expenditures | (60) | (53.5) | (32.3) |
Acquisition spending, net of cash acquired | (11.4) | (44.6) | (58.3) |
Capitalized software | (8.4) | (13.1) | (9.5) |
Purchase of investments | (2.8) | (3.4) | (4.2) |
Sales or maturities of investments | 2.3 | 3.3 | 3.6 |
Proceeds from sale of subsidiary, net of cash divested | 69.5 | 0 | 0 |
Other – net | 0 | 0.2 | 0.3 |
Net cash flows from (to) investing activities | (10.7) | (111) | (100.4) |
Net Cash Flows From (To) Financing Activities: | |||
Payments of debt | (401.6) | (2.6) | (83.2) |
Proceeds from debt | 413.9 | 5 | 83.3 |
Dividends paid | (53.2) | (53.8) | (52.1) |
Purchase of HNI Corporation common stock | (65.2) | (59.2) | (6.8) |
Proceeds from sales of HNI Corporation common stock | 4.7 | 31.1 | 8.1 |
Other – net | (4) | (5.1) | 0.6 |
Net cash flows from (to) financing activities | (105.4) | (84.5) | (50.1) |
Net increase (decrease) in cash and cash equivalents | (34.8) | (63.9) | 64 |
Cash and cash equivalents at beginning of period | 52.3 | 116.1 | 52.1 |
Cash and cash equivalents at end of period | $ 17.4 | $ 52.3 | $ 116.1 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
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 workplace furnishings and residential building products. Refer to "Note 16. Reportable Segment Information" in the Notes to Consolidated Financial Statements for further information. Workplace furnishings products include furniture systems, seating, storage, tables, and architectural products. These products are sold primarily through a national system of independent dealers, wholesalers, and office product distributors but also directly to end-user customers and federal, state, and local governments. Residential building products include a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. These products are sold through a national system of independent dealers and distributors, as well as Corporation-owned distribution and retail outlets. The Corporation’s products are marketed predominantly in the United States and Canada. The Corporation exports select products through its export subsidiary to a limited number of markets outside North America, principally the Caribbean, Latin America, and Mexico. The Corporation also manufactures and markets office furniture in India. All dollar amounts presented are in millions, except per share data or where otherwise indicated. Amounts may not sum due to rounding. Fiscal year-end – The Corporation follows a 52/53-week fiscal year, which ends on the Saturday nearest December 31. Fiscal year 2022 ended on December 31, 2022, fiscal year 2021 ended on January 1, 2022, and fiscal year 2020 ended on January 2, 2021. The financial statements for fiscal years 2022 and 2021 are on a 52-week basis, while 2020 is on a 53-week basis. A 53-week year occurs approximately every sixth year. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Cash, Cash Equivalents, and Investments Cash and cash equivalents generally consist of cash and money market accounts. The fair value approximates the carrying value due to the short duration of the securities. These securities have original maturity dates not exceeding three months. The Corporation has short-term investments with maturities of less than one year, as well as investments with maturities between one and five years. Management classifies investments in marketable securities at the time of purchase and reevaluates such classification at each balance sheet date. Debt securities, including government and corporate bonds, are classified as available-for-sale and stated at current market value with unrealized gains and losses included as a separate component of equity, net of any related tax effect. The specific identification method is used to determine realized gains and losses on the trade date. The Corporation’s equity investment consists of an investment in a private entity and is carried at cost, as it does not have a readily determinable fair value. Cash, cash equivalents, and investments are reflected in the Consolidated Balance Sheets and were as follows: December 31, 2022 January 1, 2022 Cash and cash equivalents Short-term investments Other Assets Cash and cash equivalents Short-term investments Other Assets Debt securities $ — $ 2.0 $ 10.8 $ — $ 1.4 $ 11.9 Equity investment — — 1.5 — — 2.5 Cash and money market accounts 17.4 — — 52.3 — — Total $ 17.4 $ 2.0 $ 12.3 $ 52.3 $ 1.4 $ 14.4 The following table summarizes the amortized cost basis of the debt securities: December 31, 2022 January 1, 2022 Amortized cost basis of debt securities $ 13.7 $ 13.2 Immaterial unrealized gains and losses are recorded in "Accumulated other comprehensive income (loss)" in the Consolidated Balance Sheets for these debt securities. Immaterial amounts of accrued interest receivable related to the Corporation’s portfolio are recorded in "Prepaid expenses and other current assets". Receivables Trade receivables are recorded at amortized cost, net of an allowance for doubtful accounts. 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. In the third quarter of 2022 the Corporation adjusted its method of determining the allowance for doubtful accounts in response to increased macroeconomic uncertainty. The impact of this adjustment was not material to the consolidated financial statements. The following table summarizes the change in the allowance for doubtful accounts: Balance at beginning of period Current provision and adjustments Amounts written off Recoveries and other Divestiture of business Balance at end of period Year ended December 31, 2022 $ 2.8 $ 1.7 $ (1.0) $ 0.2 $ (0.5) $ 3.2 Year ended January 1, 2022 $ 5.5 $ (0.9) $ (1.9) $ 0.1 $ — $ 2.8 Year ended January 2, 2021 $ 3.6 $ 3.6 $ (1.7) $ 0.0 $ — $ 5.5 Inventories The Corporation’s residential building products inventories, and a majority of its workplace furnishings inventories, are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. Inventories included in the Consolidated Balance Sheets consisted of the following: December 31, 2022 January 1, 2022 Finished products $ 121.0 $ 137.2 Materials and work in process 112.8 92.0 Last-in, first-out ("LIFO") allowance (53.7) (47.6) Total inventories, net $ 180.1 $ 181.6 Inventory valued by the LIFO costing method 91 % 84 % There were no material liquidations of previously established LIFO layers in 2022 or 2021. If only the FIFO method had been in use, inventories would have been $53.7 million and $47.6 million higher than reported as of December 31, 2022 and January 1, 2022, respectively. The increase in the LIFO allowance from prior year end was primarily attributed to an increase in units on hand. In addition to the LIFO allowance, the Corporation recorded inventory allowances of $14.9 million and $19.9 million as of December 31, 2022, and January 1, 2022, respectively, to adjust for excess and obsolete inventory or otherwise reduce FIFO-basis inventory to net realizable value. The year-over-year decrease was primarily due to inventory liquidations at an eCommerce business in the workplace furnishings segment. Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for repairs and maintenance are expensed as incurred. Major improvements that materially extend the useful lives of the assets are capitalized. Depreciation has been computed using the straight-line method over estimated useful lives: land improvements, 10 – 20 years; buildings, 10 – 40 years; and machinery and equipment, 3 – 12 years. Total depreciation expense was as follows: 2022 2021 2020 Depreciation expense $ 53.3 $ 53.0 $ 53.4 Long-Lived Assets The Corporation evaluates long-lived assets, including definite-lived intangible assets, for indicators of impairment as events or changes in circumstances occur indicating that an impairment risk may be present. The judgments regarding the existence of impairment are based on business and market conditions, operational performance, and estimated future cash flows. If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded to adjust the asset to its estimated fair value. Goodwill and Other Intangible Assets The Corporation evaluates its goodwill for impairment on an annual basis during the fourth quarter or whenever indicators of impairment exist. Asset impairment charges associated with the Corporation’s goodwill impairment testing are discussed in "Note 6. Goodwill and Other Intangible Assets" in the Notes to Consolidated Financial Statements. The Corporation reviews goodwill at the reporting unit level within its workplace furnishings and residential building products operating segments. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. The accounting standards for goodwill permit entities to first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the quantitative test is required, the Corporation estimates the fair value of its reporting units based on an average of the income approach and the market approach. This estimated fair value is compared to the carrying value of the reporting unit and an impairment is recorded if the estimate is less than the carrying value. In the income approach, the estimate of fair value of each reporting unit is based on management’s projection of revenues, gross margin, operating costs, and cash flows considering historical and estimated future results, general economic and market conditions, as well as the impact of planned business and operational strategies. The valuations employ present value techniques to measure fair value and consider market factors. In the market approach, the Corporation utilizes the guideline company method, which involves calculating valuation multiples based on operating data from guideline publicly-traded companies. These multiples are then applied to the operating data for the reporting units and adjusted for factors similar to those used in the discounted cash flow analysis. Management believes the assumptions used for the quantitative impairment test, if required, are consistent with those utilized by a market participant in performing similar valuations of its reporting units. Management bases its fair value estimates on assumptions they believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Actual results may differ from those estimates. The Corporation also evaluates the fair value of indefinite-lived trade names on an annual basis during the fourth quarter or whenever an indication of impairment exists. Consistent with goodwill impairment testing, a qualitative assessment may be performed to determine whether it is more likely than not the fair value of indefinite-lived trade names is less than the carrying amount. If it is determined necessary to perform a quantitative test, the estimate of the fair value of the trade names is based on a discounted cash flows model using inputs which include: projected revenues, assumed royalty rates that would be payable if the trade names were not owned, and discount rates. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses are reflected in the Consolidated Balance Sheets and were as follows: December 31, 2022 January 1, 2022 Trade accounts payable $ 165.3 $ 233.8 Compensation 47.1 55.4 Profit sharing and retirement 11.6 22.9 Accrued marketing programs 31.3 31.5 Accrued freight 12.5 19.1 Customer deposits 27.3 27.2 Other accrued expenses 72.6 83.9 $ 367.7 $ 473.8 Product Warranties The Corporation issues certain warranty policies on its workplace furnishings and residential building products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. The duration of warranty policies on the Corporation’s products varies based on the type of product. Allowances have been established for the anticipated future costs associated with the Corporation’s warranty programs. A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the allowance. Activity associated with warranty obligations was as follows: 2022 2021 2020 Balance at beginning of period $ 16.0 $ 16.1 $ 15.9 Accruals for warranties issued during period 9.3 7.7 9.4 Adjustments related to pre-existing warranties (1.1) (0.2) 0.1 Settlements made during the period (9.4) (7.6) (9.3) Balance at end of period $ 14.8 $ 16.0 $ 16.1 The current and long-term portions of the allowance for the estimated settlements are included within "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid: December 31, 2022 January 1, 2022 Current - in the next twelve months $ 5.4 $ 5.4 Long-term - beyond one year 9.4 10.6 $ 14.8 $ 16.0 Revenue Recognition Performance Obligations - The Corporation recognizes revenue for sales of workplace furnishings and residential building products at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment of the product. In certain circumstances, transfer of control to the customer does not occur until the goods are received by the customer or upon installation and/or customer acceptance, depending on the terms of the underlying contracts. Contracts typically have a duration of less than one year and normally do not include a significant financing component. Generally, payment is due within 30 days of invoicing. Significant Judgments - The amount of consideration the Corporation receives and revenue recognized varies with changes in rebate and marketing program incentives, as well as early pay discounts, offered to customers. The Corporation uses significant judgment throughout the year in estimating the reduction in net sales driven by variable consideration for rebate and marketing programs. Judgments made include expected sales levels and utilization of funds. However, this judgment factor is significantly reduced at the end of each year when sales volumes and the impact to rebate and marketing programs are known and recorded as the programs typically end near the Corporation’s fiscal year end. Accounting Policies and Practical Expedients : • The Corporation applies the accounting policy election which allows an entity to account for shipping and handling activities that occur after control is transferred as fulfillment activities. The Corporation accrues for shipping and handling costs at the same time revenue is recognized, which is in accordance with the policy election. When shipping and handling activities occur prior to the customer obtaining control of the good(s), they are considered fulfillment activities rather than a performance obligation and the costs are accrued for as incurred. • The Corporation applies the accounting policy election which allows an entity to exclude from the measurement of the transaction price all taxes assessed by a governmental authority associated with the transaction, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows the Corporation to present revenue net of these certain types of taxes. • The Corporation applies the practical expedient which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year. • The Corporation applies the practical expedient which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Corporation’s contracts are typically less than one year in length, consideration will not be adjusted. • The Corporation’s backlog orders are typically cancellable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation elected the practical expedient not to disclose the unsatisfied performance obligation as of period end. The backlog is typically fulfilled within a few months. Leases Accounting Policies and Practical Expedients : • The Corporation has made an accounting election by class of underlying assets to not separate non-lease components of a contract from the lease components to which they relate for all classes of assets except for embedded leases. • The Corporation has elected for all asset classes to not recognize right of use ("ROU") assets and lease liabilities for leases that at the acquisition date or business combination date have a remaining lease term of twelve months or less. Research and Development Costs Research and development costs relating to development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. These costs include salaries, contractor fees, prototype costs, and administrative fees. The amounts charged against income and recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income were as follows: 2022 2021 2020 Research and development costs $ 47.8 $ 39.4 $ 35.3 Freight Expense Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows: 2022 2021 2020 Freight expense $ 142.0 $ 118.2 $ 98.4 The increase in freight expense from prior year was driven by diesel inflation and higher carrier rates. Stock-Based Compensation The Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and generally recognizes cost over the requisite service period. See "Note 11. Stock-Based Compensation" in the Notes to Consolidated Financial Statements for further information. Income Taxes The Corporation uses an asset and liability approach that takes into account guidance related to uncertain tax positions and requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred income taxes are provided to reflect differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Earnings Per Share Basic earnings per share are based on the weighted-average number of common shares outstanding during the year. Shares potentially issuable under stock options, restricted stock units, and common stock equivalents under the Corporation’s deferred compensation plans have been considered outstanding for purposes of the diluted earnings per share calculation. The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS"): 2022 2021 2020 Numerator: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 123.9 $ 59.8 $ 41.9 Denominators: Denominator for basic EPS weighted-average common shares outstanding 41.7 43.4 42.7 Potentially dilutive shares from stock-based compensation plans 0.5 0.5 0.3 Denominator for diluted EPS 42.2 44.0 43.0 Earnings per share – basic $ 2.97 $ 1.38 $ 0.98 Earnings per share – diluted $ 2.94 $ 1.36 $ 0.98 The weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive: 2022 2021 2020 Common stock equivalents excluded because their inclusion would be anti-dilutive 2.0 1.6 3.1 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Areas requiring significant use of management estimates relate to goodwill and intangibles, accruals for self-insured medical claims, workers’ compensation, legal contingencies, general liability and auto insurance claims, valuation of long-lived assets, and estimates of income taxes. Other areas requiring use of management estimates relate to allowance for doubtful accounts, inventory allowances, marketing program accruals, warranty accruals, and useful lives for depreciation and amortization. Actual results could differ from those estimates. Self-Insurance The Corporation is primarily self-insured for general, auto, and product liability, workers’ compensation, and certain employee health benefits. Certain risk exposures are mitigated through the use of independent third party stop loss insurance coverages. The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows: December 31, 2022 January 1, 2022 Current - "Accounts payable and accrued expenses" $ 5.2 $ 5.8 Non-current - "Other Long-Term Liabilities" 18.6 20.5 Total general, auto, product, and workers’ compensation liabilities $ 23.8 $ 26.3 The preceding table excludes self-insured member health benefits liabilities of $7.2 million and $5.9 million as of December 31, 2022 and January 1, 2022, respectively. The Corporation’s policy is to accrue amounts in accordance with the actuarial determined liabilities. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost inflation, and magnitude of change in actual experience development could cause these estimates to change in the future. Foreign Currency Translations Foreign currency financial statements of foreign operations, where the local currency is the functional currency, are translated using exchange rates in effect at period end for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component of Shareholders’ Equity. Immaterial gains and losses on foreign currency transactions are included in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income. Reclassifications Certain reclassifications have been made within the financial statements to conform to the current year presentation. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue Revenue from contracts with customers disaggregated by product category is as follows: 2022 2021 2020 Systems and storage $ 889.6 $ 833.2 $ 741.2 Seating 473.7 481.7 489.3 Other 123.0 119.0 135.2 Total workplace furnishings 1,486.2 1,434.0 1,365.7 Residential building products 875.6 750.4 589.7 $ 2,361.8 $ 2,184.4 $ 1,955.4 Sales by product category are subject to similar economic factors and market conditions. See "Note 16. Reportable Segment Information" in the Notes to Consolidated Financial Statements for further information about operating segments. Contract Assets and Contract Liabilities In addition to trade receivables, the Corporation has contract assets consisting of funds paid up-front to certain workplace furnishings dealers in exchange for their multi-year commitment to market and sell the Corporation’s products. These contract assets are amortized over the term of the contracts and recognized as a reduction of revenue. The Corporation has contract liabilities consisting of customer deposits and rebate and marketing program liabilities. Contract assets and contract liabilities were as follows: December 31, January 1, Trade receivables (1) $ 218.4 $ 240.0 Contract assets (current) (2) $ 2.9 $ 1.5 Contract assets (long-term) (3) $ 29.8 $ 18.2 Contract liabilities - Customer deposits (4) $ 27.3 $ 27.2 Contract liabilities - Accrued rebate and marketing programs (4) $ 31.3 $ 31.5 The index below indicates the line item in the Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the year ended December 31, 2022 were as follows: Contract assets increase (decrease) Contract liabilities (increase) decrease Contract assets recognized $ 15.9 $ — Reclassification of contract assets to contra-revenue (2.9) — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (115.7) Contract liabilities paid — 116.0 Cash received in advance and not recognized as revenue — (144.9) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 137.2 Impact of divestiture of business — 7.6 Net change $ 13.0 $ 0.1 Changes in contract asset and contract liability balances during the year ended January 1, 2022 were as follows: Contract assets increase (decrease) Contract liabilities (increase) decrease Contract assets recognized $ 17.3 $ — Reclassification of contract assets to contra-revenue (0.9) — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (121.7) Contract liabilities paid — 122.1 Cash received in advance and not recognized as revenue — (115.2) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 109.9 Impact of business combination — (0.8) Net change $ 16.4 $ (5.6) The increase in contract assets in 2022 and 2021 is due to payments made in connection with multi-year distribution agreements in the workplace furnishings segment. Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon completion of the performance obligations. The amount of revenue recognized during the year ended December 31, 2022 that was included in the January 1, 2022 contract liabilities balance was $26.7 million. The amount of revenue recognized during the year ended January 1, 2022 that was included in the January 2, 2021 contract liabilities balance was $21.1 million. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and DivestituresIn July 2022, the Corporation closed on the sale of its China- and Hong Kong-based Lamex office furniture business ("Lamex"), which was a component of the workplace furnishings segment, to Kokuyo Co., Ltd, a leading manufacturer and provider of office furniture in Japan and across Asia, for approximately $75 million plus standard post-closing working capital adjustments, net of cash acquired by the buyer. The Corporation recorded a pre-tax gain on sale in the current year of $50.4 million that included transaction-related expenses of approximately $6 million as well as a cumulative foreign currency translation benefit of $3.3 million that was reclassified from accumulated other comprehensive income. The assets and liabilities of Lamex which were disposed of in conjunction with the sale are as follows: As of Assets: Cash and cash equivalents $ 5.5 Receivables 20.1 Allowance for doubtful accounts (0.5) Inventories, net 6.9 Prepaid expenses and other current assets 6.4 Buildings 6.2 Machinery and equipment 25.9 Accumulated depreciation (17.0) Right-of-use - Operating Leases 5.8 Goodwill and Other Intangible Assets, net 10.9 Total Assets $ 70.4 Liabilities: Accounts payable and accrued expenses $ 36.1 Current lease obligations - Operating 1.7 Long-Term Lease Obligations - Operating 4.9 Deferred Income Taxes 0.1 Total Liabilities $ 42.7 In June 2022, the Corporation acquired Dickerson Hearth Products ("Dickerson"), an installing fireplace distributor in the Raleigh, North Carolina area, for approximately $8 million. The transaction, which aligns with the Corporation’s vertical integration strategy in the residential building products market, was structured as an asset acquisition and was consummated entirely in cash. The preliminary purchase price allocation includes $7.6 million of goodwill, which include immaterial purchase price adjustments made during third and fourth quarter of 2022. The remaining assets and liabilities acquired were not material to the consolidated financial statements. The Corporation expects to finalize the allocation of the purchase price during 2023. In December 2021, the Corporation acquired The Outdoor GreatRoom Company ("OGC"), a leading manufacturer and supplier of premium outdoor fire tables and fire pits, for approximately $15 million. This transaction, which positions the Corporation to grow and develop a leading position in the fast-growing outdoor living market, was structured as a stock acquisition and was consummated entirely in cash. In October 2021, the Corporation acquired Trinity Hearth & Home ("Trinity"), an installing fireplace distributor in the Dallas/Fort Worth area, for approximately $31 million. This transaction, which aligns with the Corporation’s vertical integration strategy in the residential building products market and provides a hub to better serve customers in the rapidly growing Southwest region, was structured as an asset acquisition and was consummated entirely in cash. The assets and liabilities of Trinity, OGC, and Dickerson are included in the Corporation’s residential building products segment. The related goodwill, which is expected to be tax deductible, is assigned to the residential building products reporting unit. The purchase price allocation for Trinity and OGC, and estimated amortization periods of identified intangible assets as of the respective dates of acquisition is as follows: Trinity OGC Fair Value Amortization Period Fair Value Amortization Period Cash $ — $ 0.3 Inventories 1.9 4.5 Receivables 4.6 1.8 Prepaid expenses and other current assets — 1.2 Property, plant, and equipment 0.3 0.5 Accounts payable and accrued expenses (1.7) (2.8) Goodwill 14.2 2.4 Customer lists 12.0 13 Years 4.9 10 Years Trade names — 2.5 10 Years Total net assets $ 31.3 $ 15.3 As a result of further review and refinement, measurement period adjustments were recorded in the first quarter of 2022 which decreased Trinity’s inventory acquired by $0.2 million and increased goodwill related to both acquisitions by $0.9 million in the aggregate. Additionally, the aggregate purchase price of the deals increased by $0.8 million as a result of post-closing working capital settlements. There were no measurement period adjustments recorded after the first quarter of 2022, and the purchase accounting for the Trinity and OGC acquisitions was complete as of July 2, 2022. All acquisitions above were accounted for using the acquisition method pursuant to ASC 805, with goodwill being recorded as a result of the purchase price exceeding the fair value of identifiable tangible and intangible assets and liabilities. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The Corporation’s cash payments for interest, income taxes, and non-cash investing and financing activities are as follows : 2022 2021 2020 Cash paid for: Interest $ 9.2 $ 7.6 $ 7.5 Income taxes $ 31.1 $ 26.4 $ 31.4 Changes in accrued expenses due to: Purchases of property and equipment $ 1.4 $ 0.2 $ 6.4 Purchases of capitalized software $ (1.4) $ 0.0 $ 0.2 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following: December 31, 2022 January 1, 2022 Goodwill, net $ 305.9 $ 297.3 Definite-lived intangible assets, net 118.4 147.6 Indefinite-lived intangible assets 15.5 26.5 Total goodwill and other intangible assets, net $ 439.8 $ 471.5 Goodwill The changes in the carrying amount of goodwill, by reporting segment, are as follows: Workplace Furnishings Residential Building Products Total Balance as of January 2, 2021 Goodwill $ 168.5 $ 197.0 $ 365.5 Accumulated impairment losses (72.9) (0.1) (73.0) Net goodwill balance as of January 2, 2021 $ 95.6 $ 196.8 $ 292.4 Goodwill acquired / measurement period adjustments (6.2) 16.9 10.7 Impairment losses (5.8) — (5.8) Balance as of January 1, 2022 Goodwill 162.3 213.8 376.1 Accumulated impairment losses (78.6) (0.1) (78.8) Net goodwill balance as of January 1, 2022 $ 83.6 $ 213.7 $ 297.3 Goodwill acquired (disposed) / measurement period adjustments (13.6) 8.6 (5.0) Accumulated impairment losses disposed 13.6 — 13.6 Balance as of December 31, 2022 Goodwill 148.7 222.4 371.1 Accumulated impairment losses (65.0) (0.1) (65.2) Net goodwill balance as of December 31, 2022 $ 83.6 $ 222.3 $ 305.9 In 2022, goodwill and accumulated impairment losses were disposed of in conjunction with the retirement of the Maxon brand and the sale of Lamex. See "Note 4. Acquisitions and Divestitures" for additional information on transactions that resulted in changes in goodwill in the current year. Definite-lived intangible assets The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Corporation’s Consolidated Balance Sheets: December 31, 2022 January 1, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Software $ 194.4 $ 122.5 $ 71.9 $ 196.8 $ 102.1 $ 94.7 Trademarks and trade names 14.3 5.9 8.4 14.3 4.6 9.7 Customer lists and other 80.2 42.1 38.1 109.6 66.4 43.3 Net definite-lived intangible assets $ 288.8 $ 170.4 $ 118.4 $ 320.7 $ 173.0 $ 147.6 The decrease in the gross balance of definite-lived intangible assets during the current year was primarily due to the sale of Lamex and the disposal of its fully amortized assets. The decrease in accumulated amortization related to the Lamex sale was partially offset by normal amortization expense. Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows: 2022 2021 2020 Capitalized software $ 24.4 $ 23.6 $ 19.3 Other definite-lived intangibles $ 6.5 $ 6.5 $ 5.0 The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows: 2023 2024 2025 2026 2027 Amortization expense $ 25.7 $ 22.5 $ 20.2 $ 16.8 $ 11.6 Indefinite-lived intangible assets The Corporation also owns certain intangible assets, which are deemed to have indefinite useful lives because they are expected to generate cash flows indefinitely. These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Consolidated Balance Sheets: December 31, 2022 January 1, 2022 Trademarks and trade names $ 15.5 $ 26.5 In the third quarter of 2022, the Corporation sold its Lamex business which resulted in the disposal of the related indefinite-lived trade name. Impairment Analysis The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist. The Corporation elected to perform a qualitative assessment for purposes of its annual goodwill impairment testing in 2022. Based on this assessment, management concluded that for the majority of reporting units it was more likely than not that the fair value of each reporting unit was greater than its carrying value. For a small workplace furnishings reporting unit, management concluded that a quantitative assessment was required, which resulted in no identified impairment. For the quantitative goodwill impairment testing, management utilized a combination of both a discounted cash flows approach and market approach. Projections used in the impairment model reflected management’s assumptions regarding revenue growth rates, economic and market trends, cost structure, investments required in support of strategic initiatives, and other expectations about the anticipated short-term and long-term operating results of the reporting unit. As a result of the impairment testing the reporting unit, which has goodwill of $33.6 million, was determined to have a fair value that exceeded carrying value by a reasonable margin. For this reporting unit, the corporation assumed a discount rate of 14 percent, near-term growth rates ranging from 4 percent to 12 percent, and a terminal growth rate of 3 percent. Holding other assumptions constant, a 100 basis point increase in the discount rate would result in a $5 million decrease in the estimated fair value of the reporting unit. Holding other assumptions constant, a 100 basis point decrease in the terminal growth rate would result in a $3 million decrease in the estimated fair value of the reporting unit. If there was both a 100 basis point decrease in the terminal growth rate and a 100 basis point increase to the discount rate, the estimated fair value of the reporting unit would still exceed the carrying value. The Corporation also elected to perform a qualitative assessment for purposes of its annual impairment testing for certain indefinite-lived intangible assets in 2022. Based on this assessment, management concluded that it was more likely than not that the fair value of the respective assets was greater than carrying value. Quantitative impairment testing was performed for the remaining indefinite-lived intangible assets, with no impairments identified. Additionally, there were no material impairments identified with respect to long-lived assets in 2022. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt is as follows: December 31, 2022 January 1, 2022 Revolving credit facility with interest at a variable rate (December 31, 2022 - 5.6%; January 1, 2022 - 1.1%) $ 89.1 $ 75.0 Fixed rate notes due in 2025 with an interest rate of 4.22% 50.0 50.0 Fixed rate notes due in 2028 with an interest rate of 4.40% 50.0 50.0 Other amounts 1.3 3.2 Deferred debt issuance costs (0.3) (0.4) Total debt 190.1 177.8 Less: Current maturities 1.3 3.2 Long-term debt $ 188.8 $ 174.6 Aggregate maturities of debt are as follows: 2023 2024 2025 2026 2027 Thereafter Maturities of debt $ 1.3 $ — $ 50.0 $ — $ 89.1 $ 50.0 The carrying value of the Corporation’s outstanding variable-rate, long-term debt obligations at December 31, 2022 was $89 million, which approximated fair value. The fair value of the fixed rate notes was estimated based on a discounted cash flow method (Level 2) to be $99 million at December 31, 2022. As of December 31, 2022, the Corporation’s revolving credit facility borrowings were under the amended and restated credit agreement entered into on June 14, 2022, with a scheduled maturity of June 2027. The Corporation deferred the debt issuance costs related to the credit agreement, which are classified as assets, and is amortizing them over the term of the credit agreement. The current portion of debt issuance costs of $0.3 million is the amount to be amortized over the next twelve months based on the current credit agreement and is reflected in "Prepaid expenses and other current assets" in the Consolidated Balance Sheets. The long-term portion of debt issuance costs of $1.2 million is reflected in "Other Assets" in the Consolidated Balance Sheets. As of December 31, 2022, there was $89 million outstanding under the $400 million revolving credit facility. The entire amount drawn under the revolving credit facility is considered long-term as the Corporation assumes no obligation to repay any of the amounts borrowed in the next twelve months. Based on current earnings before interest, taxes, depreciation and amortization, the Corporation can access the full remaining $311 million of borrowing capacity available under the revolving credit facility and maintain compliance with applicable covenants. In addition to cash flows from operations, the revolving credit facility under the credit agreement is the primary source of daily operating capital for the Corporation and provides additional financial capacity for capital expenditures, repurchases of common stock, and strategic initiatives, such as acquisitions. In addition to the revolving credit facility, the Corporation also has $100 million of borrowings outstanding under private placement note agreements entered into on May 31, 2018. Under the agreements, the Corporation issued $50 million of seven-year fixed rate notes with an interest rate of 4.22 percent, due May 31, 2025, and $50 million of ten-year fixed rate notes with an interest rate of 4.40 percent, due May 31, 2028. The Corporation deferred the debt issuance costs related to the private placement note agreements, which are classified as a reduction of long-term debt, and is amortizing them over the terms of the private placement note agreements. The deferred debt issuance costs do not reduce the amount owed by the Corporation under the terms of the private placement note agreements. As of December 31, 2022, the debt issuance costs balance of $0.3 million related to the private placement note agreements is reflected in "Long-Term Debt" in the Consolidated Balance Sheets. The credit agreement and private placement notes both contain financial and non-financial covenants. The covenants under both are substantially the same. Non-compliance with covenants under the agreements could prevent the Corporation from being able to access further borrowings, require immediate repayment of all amounts outstanding, and/or increase the cost of borrowing. Covenants require maintenance of financial ratios as of the end of any fiscal quarter, including: • a consolidated interest coverage ratio (as defined in the credit agreement) of not less than 4.0 to 1.0, based upon the ratio of (a) consolidated EBITDA for the last four fiscal quarters to (b) the sum of consolidated interest charges; and • a consolidated leverage ratio (as defined in the credit agreement) of not greater than 3.5 to 1.0, based upon the ratio of (a) the quarter-end consolidated funded indebtedness to (b) consolidated EBITDA for the last four fiscal quarters. The most restrictive of the financial covenants is the consolidated leverage ratio requirement of 3.5 to 1.0. Under the credit agreement, consolidated EBITDA is defined as consolidated net income before interest expense, income taxes, and depreciation and amortization of intangibles, as well as non-cash items that increase or decrease net income. As of December 31, 2022, the Corporation was below the maximum allowable ratio and was in compliance with all of the covenants and other restrictions in the credit agreement. The Corporation expects to remain in compliance with all of the covenants and other restrictions in the credit agreement over the next twelve months. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows: 2022 2021 2020 Current: Federal $ 29.8 $ 14.1 $ 18.4 State 8.3 4.0 6.0 Foreign 0.3 0.8 0.1 Current provision 38.5 18.8 24.5 Deferred: Federal (13.1) (0.7) (9.1) State (2.8) 0.4 (2.4) Foreign 0.0 (0.1) (0.6) Deferred provision (15.9) (0.4) (12.1) Total income tax expense $ 22.5 $ 18.5 $ 12.5 The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows: 2022 2021 2020 Federal statutory tax expense $ 30.7 $ 16.4 $ 11.4 State taxes, net of federal tax effect 5.6 3.7 2.4 Credit for research activities (4.2) (4.0) (3.9) Valuation allowance (7.1) (0.2) 1.3 Goodwill impairment — 0.1 1.5 Executive compensation limitation 1.4 1.2 0.5 Sale of foreign subsidiary (4.2) — — Other – net 0.3 1.2 (0.7) Total income tax expense $ 22.5 $ 18.5 $ 12.5 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: December 31, January 1, Deferred Taxes Allowance for doubtful accounts $ 0.7 $ 0.5 Compensation 7.2 7.3 Inventory differences 1.2 3.1 Stock-based compensation 7.9 7.9 Accrued post-retirement benefit obligations 4.4 5.7 Vacation accrual 3.9 3.2 Warranty accrual 4.2 4.4 Tax loss and tax credit carryforwards 5.8 10.2 Capital loss carryforward 0.1 2.1 Lease liability 27.3 23.4 Payroll deferral — 2.1 Research and development capitalization 16.3 — Other 2.6 8.0 Total deferred tax assets $ 81.7 $ 77.9 Deferred income (5.6) (5.0) Goodwill and other intangible assets (48.1) (49.7) Prepaid expenses (6.6) (6.5) Right of use asset (24.7) (23.1) Tax over book depreciation (53.0) (56.6) Total deferred tax liabilities $ (137.9) $ (141.0) Valuation allowance (4.2) (11.3) Total net deferred tax liabilities $ (60.4) $ (74.3) Long-term net deferred tax assets 0.7 0.7 Long-term net deferred tax liabilities (61.0) (75.0) Total net deferred tax liabilities $ (60.4) $ (74.3) The valuation allowance, which primarily relates to foreign deferred tax assets, is as follows: Balance at beginning of period Charged to expenses Balance at end of period Year ended December 31, 2022 $ 11.3 $ (7.1) $ 4.2 Year ended January 1, 2022 $ 11.5 $ (0.2) $ 11.3 Year ended January 2, 2021 $ 10.3 $ 1.3 $ 11.5 The current year net decrease in the valuation allowance of $7.1 million primarily relates to the sale of Lamex in July 2022. This transaction created tax benefits for valuation adjustments related to existing deferred tax assets, as well as basis differences. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 Balance at beginning of period $ 2.2 $ 2.2 Increases in positions taken in a prior period — 0.1 New positions taken in a current period 0.5 0.6 Decrease due to lapse of statute of limitations (0.5) (0.7) Balance at end of period $ 2.2 $ 2.2 As of December 31, 2022, it is reasonably possible the amount of unrecognized tax benefits may increase or decrease within the twelve months following the reporting date. These increases or decreases in the unrecognized tax benefits would be due to new positions that may be taken on income tax returns, settlement of tax positions, and the closing of statutes of limitation. It is not expected any of the changes will be material individually, or in total, to the results or financial position of the Corporation. The Corporation recognizes interest related to unrecognized tax benefits in interest expense, and penalties in operating expenses, consistent with the recognition of these items in prior reporting periods. The expenses and liabilities recorded for interest and penalties as of and for the years ended December 31, 2022 and January 1, 2022 are immaterial. Tax years 2019 through 2021 remain open for examination by the Internal Revenue Service ("IRS"). Tax years 2018 through 2021 remain open for examination in various state and foreign jurisdictions. The Corporation is not currently under federal examination. The Corporation is currently under examination in certain states in which the outcome is expected to be immaterial. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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, derivative financial instruments, put option liabilities, and deferred stock-based compensation. The marketable securities are comprised of money market funds, government securities, and corporate bonds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Significant unobservable inputs, which are classified within Level 3, are used in the estimation of the fair value of put option liabilities, determined using a simulation model based on assumptions including future cash flows, discount rates, and volatility. Financial instruments measured at fair value were as follows: Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance as of December 31, 2022 Cash and cash equivalents (including money market funds) (1) $ 17.4 $ 17.4 $ — $ — Government securities (2) $ 5.6 $ — $ 5.6 $ — Corporate bonds (2) $ 7.2 $ — $ 7.2 $ — Deferred stock-based compensation (4) $ (4.7) $ — $ (4.7) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Balance as of January 1, 2022 Cash and cash equivalents (including money market funds) (1) $ 52.3 $ 52.3 $ — $ — Government securities (2) $ 5.5 $ — $ 5.5 $ — Corporate bonds (2) $ 7.8 $ — $ 7.8 $ — Derivative financial instruments - liability (3) $ (1.0) $ — $ (1.0) $ — Deferred stock-based compensation (4) $ (8.1) $ — $ (8.1) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Amounts in parentheses indicate liabilities. The index below indicates the line item in the Consolidated Balance Sheets where the financial instruments are reported: (1) "Cash and cash equivalents" (2) Current portion - "Short-term investments"; Long-term portion - "Other Assets" (3) Current portion - "Accounts payable and accrued expenses"; Long-term portion - "Other Long-Term Liabilities" (4) Current portion - "Current maturities of other long-term obligations"; Long-term portion - "Other Long-Term Liabilities" (5) "Other Long-Term Liabilities" |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity | Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable: Foreign Currency Unrealized Gains Pension and Post-retirement Derivative Financial Accumulated Other Balance as of December 28, 2019 $ (2.9) $ 0.1 $ (5.8) $ 0.5 $ (8.1) Other comprehensive income (loss) before reclassifications 1.4 0.4 (1.5) (3.2) (2.9) Tax (expense) or benefit — (0.1) 0.3 0.8 1.0 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.4 (0.0) 0.2 0.2 0.8 Balance as of January 2, 2021 $ (1.1) $ 0.4 $ (6.7) $ (1.8) $ (9.2) Other comprehensive income (loss) before reclassifications 0.4 (0.3) 1.2 0.4 1.7 Tax (expense) or benefit — 0.1 (0.3) (0.1) (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (0.0) 0.3 0.7 1.1 Balance as of January 1, 2022 $ (0.7) $ 0.1 $ (5.4) $ (0.7) $ (6.8) Other comprehensive income (loss) before reclassifications (2.4) (0.9) 5.3 1.1 3.2 Tax (expense) or benefit — 0.2 (1.3) (0.3) (1.3) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (3.3) (0.0) 0.2 (0.0) (3.1) Balance as of December 31, 2022 $ (6.4) $ (0.6) $ (1.1) $ 0.1 $ (8.0) Amounts in parentheses indicate reductions to equity. Interest Rate Swap In April 2022, the Corporation terminated its interest rate swap agreement and received cash proceeds of $0.4 million, the fair value of the swap on the termination date. The proceeds were recorded as cash provided by operating activities in the Consolidated Statements of Cash Flows. The $0.4 million gain from the termination of this interest rate swap agreement was recorded to "Accumulated other comprehensive income (loss)" and will be amortized to interest expense through April 2023, the remaining term of the original interest rate swap agreement. The following table details the reclassifications from accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income is Presented 2022 2021 2020 Derivative financial instruments Interest rate swap Interest expense, net $ 0.1 $ (1.0) $ (0.3) Income tax expense (0.0) 0.2 0.1 Unrealized gains on debt securities Gain on sale of debt securities Selling and administrative expenses 0.0 0.0 0.0 Income tax expense (0.0) (0.0) (0.0) Pension and post-retirement liabilities Amortization of loss Selling and administrative expenses (0.3) (0.5) (0.3) Income tax expense 0.1 0.1 0.1 Foreign currency translation Lamex divestiture Gain on sale of subsidiary 3.3 — — Foreign entity reorganization Selling and administrative expenses — — (0.4) Net of tax $ 3.1 $ (1.1) $ (0.8) Amounts in parentheses indicate reductions to profit. Director Plan In May 2017, the Corporation registered 0.3 million shares of its common stock under its 2017 Equity Plan for Non-Employee Directors of HNI Corporation (the "2017 Director Plan"). The 2017 Director Plan permits the Corporation to issue to its non-employee directors options to purchase shares of Corporation common stock, restricted stock or restricted stock units of the Corporation, and awards of Corporation common stock. The 2017 Director Plan also permits non-employee directors to elect to receive all or a portion of their annual retainers and other compensation in the form of shares of Corporation common stock. Shares of common stock issued under the Director Plan in 2022, 2021, and 2020, were 32 thousand, 25 thousand, and 38 thousand, respectively. Dividend The Corporation declared and paid cash dividends per common share as follows: 2022 2021 2020 Dividends per common shares $ 1.27 $ 1.24 $ 1.22 Members’ Stock Purchase Plan During 2017, shareholders approved the HNI Corporation Members’ Stock Purchase Plan (the "2017 MSPP"). Under the 2017 MSPP, 0.8 million shares of common stock were registered for issuance to participating members. Under the 2017 MSPP, rights to purchase stock are granted on a quarterly basis to all participating members who customarily work 20 hours or more per week and for five months or more in any calendar year. The price of the stock purchased under the MSPP is 85 percent of the closing price on the exercise date. No member may purchase stock under the MSPP in an amount which exceeds a maximum fair value of $25,000 in any calendar year. Shares of common stock issued under the MSPP in 2022, 2021, and 2020, were 88 thousand, 68 thousand, and 93 thousand, respectively. The following table provides the average price per share issued under the MSPP: 2022 2021 2020 Average price per share $ 26.50 $ 34.49 $ 25.30 An additional 0.3 million shares were available for issuance under the 2017 MSPP as of December 31, 2022. Change in Control The Corporation has entered into change in control employment agreements with certain officers. According to the agreements, a change in control occurs when a third person or entity becomes the beneficial owner of 20 percent or more of the Corporation’s common stock, when more than one-third of the Board is composed of persons not recommended by at least three-fourths of the incumbent Board, upon certain business combinations involving the Corporation, or upon approval by the Corporation’s shareholders of a complete liquidation or dissolution. Upon a change in control, a key member is deemed to have a two-year employment agreement with the Corporation, and all of his or her benefits vest under the Corporation’s compensation plans. If, at any time within two years of the change in control, his or her employment is terminated by the Corporation for any reason other than cause or disability, or by the key member for good reason, as such terms are defined in the agreement, then the key member is entitled to receive, among other benefits, a severance payment equal to two times (three times for the Corporation’s Chairman, President, and Chief Executive Officer) annual salary and the average of the prior two years’ bonuses. Stock Repurchase The par value method of accounting is used for common stock repurchases. The following table summarizes shares repurchased and settled by the Corporation: 2022 2021 2020 Shares repurchased 1.7 1.5 0.2 Average price per share $ 38.11 $ 39.89 $ 29.83 Cash purchase price $ (63.9) $ (60.4) $ (6.4) Purchases unsettled as of year end — 1.3 — Prior year purchases settled in current year (1.3) — (0.4) Shares repurchased per cash flow $ (65.2) $ (59.2) $ (6.8) As of December 31, 2022, approximately $234.0 million of the Board’s current repurchase authorization remained unspent. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Under the Corporation’s 2021 Stock-Based Compensation Plan (the "2021 Plan"), the Corporation may award options to purchase shares of the Corporation’s common stock and grant other stock awards to key personnel. Upon shareholder approval of the 2021 Plan in May 2021, no future awards were granted under the Corporation’s 2017 Stock-Based Compensation Plan (the "2017 Plan" and together with the 2021 Plan, the "Plans"), but all outstanding awards previously granted under the 2017 Plan shall remain outstanding in accordance with their terms. As of December 31, 2022, there were approximately 2.6 million shares available for future issuance under the Plans. The Plans are administered by the Human Resources and Compensation Committee of the Board. Forms of awards issued under the Plans include stock options, restricted stock units based on a service condition ("RSUs"), and restricted stock units based on both financial performance and service conditions ("PSUs"). The Corporation uses common shares held in treasury to satisfy share option exercises and distributions of shares related to vested RSUs and PSUs. RSUs awarded prior to 2020 generally cliff-vest after three years, while RSUs awarded starting in 2020 generally vest ratably over three years. PSUs were awarded starting in 2020, and generally vest at the end of a three year period, subject to a performance metric based on the Corporation’s cumulative profitability during the period. PSUs and RSUs awarded starting in 2020 generally accrue cash dividends during the vesting periods, with payment made when earned shares are distributed to participants. Stock options awarded to members must be at exercise prices equal to or exceeding the fair market value of the Corporation’s common stock on the date of grant. Stock options are generally subject to four-year cliff vesting and must be exercised within 10 years from the date of grant. The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employees’ requisite service periods, adjusted for an estimated forfeiture rate for those shares not expected to vest. Additionally, expense related to PSUs is periodically adjusted for the probable number of shares to be awarded at the end of the three year performance period. Compensation cost charged against operations for the Plans and the 2017 MSPP described in "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity" in the Notes to Consolidated Financial Statements was as follows: 2022 2021 2020 Compensation cost $ 9.0 $ 12.9 $ 7.8 The total income tax benefit recognized in the Consolidated Statements of Comprehensive Income for share-based compensation arrangements was as follows: 2022 2021 2020 Income tax benefit $ 2.0 $ 3.1 $ 1.9 RSUs The following table summarizes the changes in RSUs (shares in thousands, per share amounts in dollars): Number of Shares Weighted-Average Grant Date Fair Value Nonvested as of December 28, 2019 22 $ 38.41 Granted 174 36.78 Vested (7) 40.77 Forfeited (6) 37.50 Nonvested as of January 2, 2021 182 $ 36.80 Granted 430 37.02 Vested (63) 37.09 Forfeited (5) 32.90 Nonvested as of January 1, 2022 545 $ 36.98 Granted 164 43.05 Vested (141) 36.99 Forfeited (32) 37.75 Nonvested as of December 31, 2022 535 $ 38.79 As of December 31, 2022, there was $4.5 million of unrecognized compensation cost related to RSUs, which the Corporation expects to recognize over a weighted-average period of 0.7 years. The total value of shares vested was as follows: 2022 2021 2020 Value of shares vested $ 5.2 $ 2.3 $ 0.3 PSUs The following table summarizes the changes in PSUs (shares in thousands, per share amounts in dollars): Number of Shares Weighted-Average Grant Date Fair Value Nonvested as of December 28, 2019 — $ — Granted 157 37.64 Forfeited (9) 38.08 Nonvested as of January 2, 2021 148 $ 37.62 Granted 164 36.99 Forfeited (2) 37.61 Nonvested as of January 1, 2022 309 $ 37.29 Granted 143 43.67 Forfeited (24) 39.60 Nonvested as of December 31, 2022 428 $ 39.29 As of December 31, 2022, there was $2.3 million of unrecognized compensation cost related to PSUs, which the Corporation expects to recognize over a weighted-average period of 0.9 years. Additionally, based on the Corporation’s cumulative financial results for years 2020 through 2022, no stock units are expected to be issued in connection with PSUs granted in 2020. Accordingly, the cumulative expense recorded for these PSUs since original grant date was adjusted to zero in the current year. Stock Options Stock-based compensation expense related to stock options was estimated on the date of grant using the Black-Scholes option-pricing model with various assumptions. Expected volatilities were based on historical volatility as the Corporation does not expect that future volatility over the expected term of the options is likely to differ from the past. The Corporation used a calculation method based on the historical daily frequency for a period of time equal to the expected term. The Corporation used the current dividend yield as there are no plans to substantially increase or decrease its dividends. The Corporation used historical exercise experience to determine the expected term. The risk-free interest rate was selected based on yields from treasury securities as published by the Federal Reserve equal to the expected term of the options. The amount of stock-based compensation expense recognized during a period is also based on the portion of the stock options that are ultimately expected to vest. The Corporation estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. There were no stock options granted in 2022, 2021, or 2020. The following table summarizes the changes in outstanding stock options (shares in thousands, per share amounts in dollars): Number of Shares Weighted Average Exercise Price Outstanding as of December 28, 2019 3,223 $ 39.24 Exercised (189) 29.24 Forfeited or Expired (28) 42.38 Outstanding as of January 2, 2021 3,006 $ 39.84 Exercised (815) 35.04 Forfeited or Expired (1) 39.77 Outstanding as of January 1, 2022 2,191 $ 41.62 Exercised (64) 33.35 Forfeited or Expired (8) 42.65 Outstanding as of December 31, 2022 2,119 $ 41.86 A summary of the Corporation’s non-vested stock options and changes during the year are presented below (shares in thousands, per share amounts in dollars): Number of Shares Weighted Average Grant-Date Fair Value Nonvested as of January 1, 2022 956 $ 9.79 Vested (485) 9.71 Forfeited (3) 9.88 Nonvested as of December 31, 2022 469 $ 9.87 As of December 31, 2022, there was $0.1 million of unrecognized compensation cost related to stock option awards, which the Corporation expects to recognize over a weighted-average period of 0.1 years. Information about stock options expected to vest or currently exercisable is as follows (shares in thousands, per share amounts in dollars): December 31, 2022 Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Exercisable Period Aggregate Intrinsic Value Expected to vest 466 $ 39.74 6.1 $ 0.0 Exercisable 1,650 $ 42.46 3.8 $ 0.0 Other information for the last three years is as follows: 2022 2021 2020 Total fair value of options vested $ 4.7 $ 3.3 $ 3.6 Total intrinsic value of options exercised $ 0.5 $ 5.4 $ 1.5 Cash received from exercise of stock options $ 2.1 $ 28.5 $ 5.5 Tax benefit realized from exercise of stock options $ 0.1 $ 1.0 $ 0.4 Deferred Compensation The following table details deferred compensation, which is a combination of cash and stock, and the affected line item in the Consolidated Balance Sheets where deferred compensation is presented: December 31, 2022 January 1, 2022 Current maturities of other long-term obligations $ 0.5 $ 1.5 Other long-term liabilities 6.6 9.0 Total deferred compensation $ 7.0 $ 10.5 Total fair-market value of deferred compensation $ 4.7 $ 8.1 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Corporation has a defined contribution retirement plan covering substantially all members. The Corporation’s contribution to the plan is based on member eligible earnings and/or member contributions. A portion of the contribution is also based on results of operations, and a portion is contributed in the form of common stock of the Corporation. The following table reconciles the annual contributions: 2022 2021 2020 Stock contribution $ 5.1 $ 7.1 $ 6.9 Cash contribution 25.1 17.8 19.9 Total annual contribution $ 30.1 $ 25.0 $ 26.8 |
Post-Retirement Health Care
Post-Retirement Health Care | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Post-Retirement Health Care | Post-Retirement Health CareThe Corporation offers a fixed subsidy to certain retirees who choose to participate in a third party insurance plan selected by the Corporation. Guidance on employers’ accounting for other post-retirement plans requires recognition of the overfunded or underfunded status on the balance sheet. Under this guidance, gains and losses, prior service costs and credits, and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end. The following table sets forth the activity and reporting location of the benefit obligation and plan assets: 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 23.3 $ 23.4 Service cost 0.6 0.6 Interest cost 0.6 0.5 Benefits paid (1.1) (1.1) Actuarial gain (6.0) (0.2) Benefit obligation at end of year $ 17.3 $ 23.3 Change in plan assets Fair value at beginning of year $ — $ — Actual return on assets — — Employer contribution 1.1 1.1 Transferred out — — Benefits paid (1.1) (1.1) Fair value at end of year $ — $ — Funded Status of Plan $ (17.3) $ (23.3) Amounts recognized in the Statement of Financial Position consist of: Current liabilities $ 1.2 $ 1.1 Non-current liabilities $ 16.2 $ 22.1 Change in Accumulated Other Comprehensive Income (Loss) (before tax): Amount disclosed at beginning of year $ 3.3 $ 3.7 Actuarial gain (6.0) (0.2) Amortization of transition amount (0.1) (0.2) Amount disclosed at end of year $ (2.8) $ 3.3 Estimated future benefit payments are as follows: Fiscal 2023 $ 1.2 Fiscal 2024 $ 1.1 Fiscal 2025 $ 1.1 Fiscal 2026 $ 1.1 Fiscal 2027 $ 1.2 Fiscal 2028 - 2032 $ 6.5 Expected contributions are as follows: Fiscal 2023 $ 1.2 The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments. The discount rate used was as follows: 2022 2021 2020 Discount rate 5.2 % 2.8 % 2.4 % |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of December 31, 2022, approximately 85 percent of the value of the Corporation’s leased assets is for real estate. The remaining 15 percent of the value of the Corporation’s leased assets is for equipment. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and international operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one Many of the Corporation’s real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation’s lease agreements do not contain any material residual value guarantees. The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant. Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following: Classification 2022 2021 2020 Operating lease costs Fixed Cost of sales $ 2.9 $ 2.3 $ 1.8 Selling and administrative expenses 22.7 23.1 25.4 Short-term / variable Cost of sales 1.3 1.0 0.4 Selling and administrative expenses 1.5 0.7 1.8 Finance lease costs Amortization Cost of sales 1.2 0.9 0.5 Selling and administrative, and interest expense 2.5 1.9 0.3 Less: Sublease income Cost of sales 0.0 (0.2) — Selling and administrative expenses (0.3) (0.3) (0.1) Total lease costs $ 31.9 $ 29.4 $ 30.0 Maturity of lease liabilities as of December 31, 2022 is as follows: Operating Leases (a) Finance Leases (b) Total 2023 $ 22.8 $ 4.0 $ 26.8 2024 21.3 3.6 24.9 2025 20.3 3.2 23.5 2026 15.8 1.0 16.8 2027 11.4 0.1 11.5 Thereafter 17.6 — 17.6 Total lease payments 109.3 11.9 121.2 Less: Interest (10.1) (0.5) (10.6) Present value of lease liabilities $ 99.2 $ 11.4 $ 110.6 (a) At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $62.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced, which are excluded from operating lease liabilities. These amounts primarily relate to a manufacturing facility under construction. See "Note 15. Guarantees, Commitments, and Contingencies" in the Notes to Consolidated Financial Statements for further information. (b) At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $2.4 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities. The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of December 31, 2022: Weighted-Average Discount Rate Weighted-Average Remaining Lease Term Operating leases 3.3 % 5.6 Finance leases 2.6 % 3.3 The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities: 2022 2021 2020 Cash paid for amounts included in the measurements of lease liabilities Operating cash flows from operating / finance leases $ 22.6 $ 24.7 $ 31.5 Financing cash flows from finance leases $ 3.3 $ 2.7 $ 0.7 Leased assets obtained in exchange for new operating / finance lease liabilities $ 39.2 $ 49.3 $ 27.3 |
Leases | Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of December 31, 2022, approximately 85 percent of the value of the Corporation’s leased assets is for real estate. The remaining 15 percent of the value of the Corporation’s leased assets is for equipment. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and international operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one Many of the Corporation’s real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation’s lease agreements do not contain any material residual value guarantees. The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant. Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following: Classification 2022 2021 2020 Operating lease costs Fixed Cost of sales $ 2.9 $ 2.3 $ 1.8 Selling and administrative expenses 22.7 23.1 25.4 Short-term / variable Cost of sales 1.3 1.0 0.4 Selling and administrative expenses 1.5 0.7 1.8 Finance lease costs Amortization Cost of sales 1.2 0.9 0.5 Selling and administrative, and interest expense 2.5 1.9 0.3 Less: Sublease income Cost of sales 0.0 (0.2) — Selling and administrative expenses (0.3) (0.3) (0.1) Total lease costs $ 31.9 $ 29.4 $ 30.0 Maturity of lease liabilities as of December 31, 2022 is as follows: Operating Leases (a) Finance Leases (b) Total 2023 $ 22.8 $ 4.0 $ 26.8 2024 21.3 3.6 24.9 2025 20.3 3.2 23.5 2026 15.8 1.0 16.8 2027 11.4 0.1 11.5 Thereafter 17.6 — 17.6 Total lease payments 109.3 11.9 121.2 Less: Interest (10.1) (0.5) (10.6) Present value of lease liabilities $ 99.2 $ 11.4 $ 110.6 (a) At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $62.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced, which are excluded from operating lease liabilities. These amounts primarily relate to a manufacturing facility under construction. See "Note 15. Guarantees, Commitments, and Contingencies" in the Notes to Consolidated Financial Statements for further information. (b) At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $2.4 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities. The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of December 31, 2022: Weighted-Average Discount Rate Weighted-Average Remaining Lease Term Operating leases 3.3 % 5.6 Finance leases 2.6 % 3.3 The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities: 2022 2021 2020 Cash paid for amounts included in the measurements of lease liabilities Operating cash flows from operating / finance leases $ 22.6 $ 24.7 $ 31.5 Financing cash flows from finance leases $ 3.3 $ 2.7 $ 0.7 Leased assets obtained in exchange for new operating / finance lease liabilities $ 39.2 $ 49.3 $ 27.3 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | Guarantees, Commitments, and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of approximately $27 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and banker’s acceptances to guarantee certain payments to overseas suppliers; as of December 31, 2022, there were no outstanding amounts related to these types of guarantees. The letters of credit, bonds, and banker’s acceptances reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation periodically guarantees borrowing arrangements involving certain workplace furnishings dealers and third-party financial institutions. The terms of these guarantees, which range from less than one year to five years, generally require the Corporation to make payments directly to the financial institution in the event that the dealer is unable to repay its borrowings in accordance with the stated terms. The aggregate amount guaranteed by the Corporation in connection with these agreements is approximately $12 million as of December 31, 2022. The Corporation has determined the likelihood of making future payments under these guarantees is not probable and therefore no liability has been accrued. In the first quarter of 2022, the Corporation entered into an agreement to lease a new facility. The lease requires approximately $60 million of legally binding minimum payments over the approximate 15-year term of the agreement. The facility is currently under construction, and is not under the Corporation’s control. The contractual payments and lease accounting are expected to commence in 2023 when construction of the facility is complete. The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, and other claims. It is the Corporation’s opinion, after consultation with legal counsel, that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation’s financial condition, cash flows, or on the Corporation’s quarterly or annual operating results when resolved in a future period. |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable Segment Information Management views the Corporation as two reportable segments based on industries: workplace furnishings and residential building products. The aggregated workplace furnishings segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, and social collaborative items. The residential building products segment manufactures and markets a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation’s corporate operations. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, IT infrastructure, and corporate office real estate and related equipment. No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation’s primary market and capital investments are concentrated in the United States. Reportable segment data reconciled to the Corporation’s consolidated financial statements was as follows: 2022 2021 2020 Net Sales: Workplace furnishings $ 1,486.2 $ 1,434.0 $ 1,365.7 Residential building products 875.6 750.4 589.7 Total $ 2,361.8 $ 2,184.4 $ 1,955.4 Income (Loss) Before Income Taxes: Workplace furnishings $ 3.4 $ (0.5) $ (5.0) Residential building products 158.7 141.9 109.3 General corporate (57.3) (55.9) (43.0) Gain on sale of subsidiary 50.4 — — Operating income 155.2 85.4 61.4 Interest expense, net 8.8 7.2 7.0 Total $ 146.4 $ 78.3 $ 54.4 Depreciation and Amortization Expense: Workplace furnishings $ 45.7 $ 47.8 $ 44.6 Residential building products 12.6 10.0 9.4 General corporate 25.9 25.3 23.7 Total $ 84.2 $ 83.1 $ 77.7 Capital Expenditures (including capitalized software): Workplace furnishings $ 40.4 $ 34.8 $ 24.2 Residential building products 16.2 16.1 8.2 General corporate 11.7 15.6 9.4 Total $ 68.4 $ 66.5 $ 41.8 Identifiable Assets: Workplace furnishings $ 761.5 $ 809.0 $ 762.8 Residential building products 493.0 479.5 381.6 General corporate 160.0 209.5 273.7 Total $ 1,414.5 $ 1,497.9 $ 1,418.0 |
Restructuring and Impairment
Restructuring and Impairment | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment | Restructuring and Impairment Restructuring costs in 2022 and 2021 relate to business simplification and capacity expansion actions, including restructuring of a workplace furnishings eCommerce brand and start up costs at a manufacturing facility in Mexico. Restructuring and impairment charges were as follows: Classification 2022 2021 2020 Workplace Furnishings Inventory valuation Cost of sales $ 8.1 $ 7.4 $ — Facility set-up costs Cost of sales 0.7 0.2 — Long-lived asset disposal and impairment Restructuring and impairment charges 5.2 — — Severance Restructuring and impairment charges 0.5 0.2 — Goodwill and intangible asset impairment Restructuring and impairment charges — 5.8 38.8 General Corporate Severance Restructuring and impairment charges — 0.3 — Investment impairment Restructuring and impairment charges 1.0 — — Total $ 15.5 $ 14.0 $ 38.8 As of December 31, 2022 and January 1, 2022, accrued restructuring expenses of $0.5 million and $0.5 million, respectively, were included in "Accounts payable and accrued expenses" in the Consolidated Balance Sheets. Cash payments made for restructuring costs in both 2022 and 2021 related to the business simplification and capacity expansion actions described above were not significant, and any future costs connected to these current initiatives are not expected to be material. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal year-end | Fiscal year-end – The Corporation follows a 52/53-week fiscal year, which ends on the Saturday nearest December 31. Fiscal year 2022 ended on December 31, 2022, fiscal year 2021 ended on January 1, 2022, and fiscal year 2020 ended on January 2, 2021. The financial statements for fiscal years 2022 and 2021 are on a 52-week basis, while 2020 is on a 53-week basis. A 53-week year occurs approximately every sixth year. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents, and Investments Cash and cash equivalents generally consist of cash and money market accounts. The fair value approximates the carrying value due to the short duration of the securities. These securities have original maturity dates not exceeding three months. The Corporation has short-term investments with maturities of less than one year, as well as investments with maturities between one and five years. Management classifies investments in marketable securities at the time of purchase and reevaluates such classification at each balance sheet date. Debt securities, including government and corporate bonds, are classified as available-for-sale and stated at current market value with unrealized gains and losses included as a separate component of equity, net of any related tax effect. The specific identification method is used to determine realized gains and losses on the trade date. The Corporation’s equity investment consists of an investment in a private entity and is carried at cost, as it does not have a readily determinable fair value. |
Receivables | ReceivablesTrade receivables are recorded at amortized cost, net of an allowance for doubtful accounts. 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. |
Inventories | Inventories The Corporation’s residential building products inventories, and a majority of its workplace furnishings inventories, are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. Inventories included in the Consolidated Balance Sheets consisted of the following: December 31, 2022 January 1, 2022 Finished products $ 121.0 $ 137.2 Materials and work in process 112.8 92.0 Last-in, first-out ("LIFO") allowance (53.7) (47.6) Total inventories, net $ 180.1 $ 181.6 Inventory valued by the LIFO costing method 91 % 84 % There were no material liquidations of previously established LIFO layers in 2022 or 2021. If only the FIFO method had been in use, inventories would have been $53.7 million and $47.6 million higher than reported as of December 31, 2022 and January 1, 2022, respectively. The increase in the LIFO allowance from prior year end was primarily attributed to an increase in units on hand. |
Property, Plant and Equipment | Property, Plant, and EquipmentProperty, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for repairs and maintenance are expensed as incurred. Major improvements that materially extend the useful lives of the assets are capitalized. Depreciation has been computed using the straight-line method over estimated useful lives: land improvements, 10 – 20 years; buildings, 10 – 40 years; and machinery and equipment, 3 – 12 years. |
Long-Lived Assets | Long-Lived Assets The Corporation evaluates long-lived assets, including definite-lived intangible assets, for indicators of impairment as events or changes in circumstances occur indicating that an impairment risk may be present. The judgments regarding the existence of impairment are based on business and market conditions, operational performance, and estimated future cash flows. If the carrying value of a long-lived asset is considered impaired, an impairment charge is recorded to adjust the asset to its estimated fair value. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Corporation evaluates its goodwill for impairment on an annual basis during the fourth quarter or whenever indicators of impairment exist. Asset impairment charges associated with the Corporation’s goodwill impairment testing are discussed in "Note 6. Goodwill and Other Intangible Assets" in the Notes to Consolidated Financial Statements. The Corporation reviews goodwill at the reporting unit level within its workplace furnishings and residential building products operating segments. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. The accounting standards for goodwill permit entities to first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a quantitative goodwill impairment test. If the quantitative test is required, the Corporation estimates the fair value of its reporting units based on an average of the income approach and the market approach. This estimated fair value is compared to the carrying value of the reporting unit and an impairment is recorded if the estimate is less than the carrying value. In the income approach, the estimate of fair value of each reporting unit is based on management’s projection of revenues, gross margin, operating costs, and cash flows considering historical and estimated future results, general economic and market conditions, as well as the impact of planned business and operational strategies. The valuations employ present value techniques to measure fair value and consider market factors. In the market approach, the Corporation utilizes the guideline company method, which involves calculating valuation multiples based on operating data from guideline publicly-traded companies. These multiples are then applied to the operating data for the reporting units and adjusted for factors similar to those used in the discounted cash flow analysis. Management believes the assumptions used for the quantitative impairment test, if required, are consistent with those utilized by a market participant in performing similar valuations of its reporting units. Management bases its fair value estimates on assumptions they believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Actual results may differ from those estimates. The Corporation also evaluates the fair value of indefinite-lived trade names on an annual basis during the fourth quarter or whenever an indication of impairment exists. Consistent with goodwill impairment testing, a qualitative assessment may be performed to determine whether it is more likely than not the fair value of indefinite-lived trade names is less than the carrying amount. If it is determined necessary to perform a quantitative test, the estimate of the fair value of the trade names is based on a discounted cash flows model using inputs which include: projected revenues, assumed royalty rates that would be payable if the trade names were not owned, and discount rates. |
Product Warranties | Product Warranties The Corporation issues certain warranty policies on its workplace furnishings and residential building products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. The duration of warranty policies on the Corporation’s products varies based on the type of product. Allowances have been established for the anticipated future costs associated with the Corporation’s warranty programs. A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience. Actual claims incurred could differ from the original estimates, requiring adjustments to the allowance. |
Revenue Recognition | Revenue Recognition Performance Obligations - The Corporation recognizes revenue for sales of workplace furnishings and residential building products at a point in time following the transfer of control of such products to the customer, which typically occurs upon shipment of the product. In certain circumstances, transfer of control to the customer does not occur until the goods are received by the customer or upon installation and/or customer acceptance, depending on the terms of the underlying contracts. Contracts typically have a duration of less than one year and normally do not include a significant financing component. Generally, payment is due within 30 days of invoicing. Significant Judgments - The amount of consideration the Corporation receives and revenue recognized varies with changes in rebate and marketing program incentives, as well as early pay discounts, offered to customers. The Corporation uses significant judgment throughout the year in estimating the reduction in net sales driven by variable consideration for rebate and marketing programs. Judgments made include expected sales levels and utilization of funds. However, this judgment factor is significantly reduced at the end of each year when sales volumes and the impact to rebate and marketing programs are known and recorded as the programs typically end near the Corporation’s fiscal year end. Accounting Policies and Practical Expedients : • The Corporation applies the accounting policy election which allows an entity to account for shipping and handling activities that occur after control is transferred as fulfillment activities. The Corporation accrues for shipping and handling costs at the same time revenue is recognized, which is in accordance with the policy election. When shipping and handling activities occur prior to the customer obtaining control of the good(s), they are considered fulfillment activities rather than a performance obligation and the costs are accrued for as incurred. • The Corporation applies the accounting policy election which allows an entity to exclude from the measurement of the transaction price all taxes assessed by a governmental authority associated with the transaction, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows the Corporation to present revenue net of these certain types of taxes. • The Corporation applies the practical expedient which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year. • The Corporation applies the practical expedient which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Corporation’s contracts are typically less than one year in length, consideration will not be adjusted. • The Corporation’s backlog orders are typically cancellable for a period of time and almost all contracts have an original duration of one year or less. As a result, the Corporation elected the practical expedient not to disclose the unsatisfied performance obligation as of period end. The backlog is typically fulfilled within a few months. Freight Expense Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows: 2022 2021 2020 Freight expense $ 142.0 $ 118.2 $ 98.4 |
Leases | Leases Accounting Policies and Practical Expedients : • The Corporation has made an accounting election by class of underlying assets to not separate non-lease components of a contract from the lease components to which they relate for all classes of assets except for embedded leases. • The Corporation has elected for all asset classes to not recognize right of use ("ROU") assets and lease liabilities for leases that at the acquisition date or business combination date have a remaining lease term of twelve months or less. |
Research and Development Costs | Research and Development CostsResearch and development costs relating to development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. These costs include salaries, contractor fees, prototype costs, and administrative fees |
Stock-Based Compensation | Stock-Based CompensationThe Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and generally recognizes cost over the requisite service period. |
Income Taxes | Income Taxes The Corporation uses an asset and liability approach that takes into account guidance related to uncertain tax positions and requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Corporation’s financial statements or tax returns. Deferred income taxes are provided to reflect differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. |
Earnings Per Share | 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 | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Areas requiring significant use of management estimates relate to goodwill and intangibles, accruals for self-insured medical claims, workers’ compensation, legal contingencies, general liability and auto insurance claims, valuation of long-lived assets, and estimates of income taxes. Other areas requiring use of management estimates relate to allowance for doubtful accounts, inventory allowances, marketing program accruals, warranty accruals, and useful lives for depreciation and amortization. Actual results could differ from those estimates. |
Self-Insurance | Self-Insurance The Corporation is primarily self-insured for general, auto, and product liability, workers’ compensation, and certain employee health benefits. Certain risk exposures are mitigated through the use of independent third party stop loss insurance coverages. The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows: December 31, 2022 January 1, 2022 Current - "Accounts payable and accrued expenses" $ 5.2 $ 5.8 Non-current - "Other Long-Term Liabilities" 18.6 20.5 Total general, auto, product, and workers’ compensation liabilities $ 23.8 $ 26.3 The preceding table excludes self-insured member health benefits liabilities of $7.2 million and $5.9 million as of December 31, 2022 and January 1, 2022, respectively. The Corporation’s policy is to accrue amounts in accordance with the actuarial 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 Translations Foreign currency financial statements of foreign operations, where the local currency is the functional currency, are translated using exchange rates in effect at period end for assets and liabilities and average exchange rates during the period for results of operations. Related translation adjustments are reported as a component of Shareholders’ Equity. Immaterial gains and losses on foreign currency transactions are included in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income. |
Fair Value Measurements of Financial Instruments | For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, put option liabilities, and deferred stock-based compensation. The marketable securities are comprised of money market funds, government securities, and corporate bonds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Significant unobservable inputs, which are classified within Level 3, are used in the estimation of the fair value of put option liabilities, determined using a simulation model based on assumptions including future cash flows, discount rates, and volatility. |
Reportable Segment Information | Management views the Corporation as two reportable segments based on industries: workplace furnishings and residential building products. The aggregated workplace furnishings segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, and social collaborative items. The residential building products segment manufactures and markets a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation’s corporate operations. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, IT infrastructure, and corporate office real estate and related equipment. No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation’s primary market and capital investments are concentrated in the United States. |
Reclassifications | Reclassifications Certain reclassifications have been made within the financial statements to conform to the current year presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | Cash, cash equivalents, and investments are reflected in the Consolidated Balance Sheets and were as follows: December 31, 2022 January 1, 2022 Cash and cash equivalents Short-term investments Other Assets Cash and cash equivalents Short-term investments Other Assets Debt securities $ — $ 2.0 $ 10.8 $ — $ 1.4 $ 11.9 Equity investment — — 1.5 — — 2.5 Cash and money market accounts 17.4 — — 52.3 — — Total $ 17.4 $ 2.0 $ 12.3 $ 52.3 $ 1.4 $ 14.4 The following table summarizes the amortized cost basis of the debt securities: December 31, 2022 January 1, 2022 Amortized cost basis of debt securities $ 13.7 $ 13.2 |
Allowance for Doubtful Accounts | The following table summarizes the change in the allowance for doubtful accounts: Balance at beginning of period Current provision and adjustments Amounts written off Recoveries and other Divestiture of business Balance at end of period Year ended December 31, 2022 $ 2.8 $ 1.7 $ (1.0) $ 0.2 $ (0.5) $ 3.2 Year ended January 1, 2022 $ 5.5 $ (0.9) $ (1.9) $ 0.1 $ — $ 2.8 Year ended January 2, 2021 $ 3.6 $ 3.6 $ (1.7) $ 0.0 $ — $ 5.5 |
Schedule Of Inventory Current | Inventories included in the Consolidated Balance Sheets consisted of the following: December 31, 2022 January 1, 2022 Finished products $ 121.0 $ 137.2 Materials and work in process 112.8 92.0 Last-in, first-out ("LIFO") allowance (53.7) (47.6) Total inventories, net $ 180.1 $ 181.6 Inventory valued by the LIFO costing method 91 % 84 % |
Schedule of Property, Plant and Equipment | Total depreciation expense was as follows: 2022 2021 2020 Depreciation expense $ 53.3 $ 53.0 $ 53.4 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued expenses are reflected in the Consolidated Balance Sheets and were as follows: December 31, 2022 January 1, 2022 Trade accounts payable $ 165.3 $ 233.8 Compensation 47.1 55.4 Profit sharing and retirement 11.6 22.9 Accrued marketing programs 31.3 31.5 Accrued freight 12.5 19.1 Customer deposits 27.3 27.2 Other accrued expenses 72.6 83.9 $ 367.7 $ 473.8 |
Schedule of Product Warranties | Activity associated with warranty obligations was as follows: 2022 2021 2020 Balance at beginning of period $ 16.0 $ 16.1 $ 15.9 Accruals for warranties issued during period 9.3 7.7 9.4 Adjustments related to pre-existing warranties (1.1) (0.2) 0.1 Settlements made during the period (9.4) (7.6) (9.3) Balance at end of period $ 14.8 $ 16.0 $ 16.1 December 31, 2022 January 1, 2022 Current - in the next twelve months $ 5.4 $ 5.4 Long-term - beyond one year 9.4 10.6 $ 14.8 $ 16.0 |
Schedule of Product Development Expense | The amounts charged against income and recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income were as follows: 2022 2021 2020 Research and development costs $ 47.8 $ 39.4 $ 35.3 |
Schedule of Freight Expense | Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows: 2022 2021 2020 Freight expense $ 142.0 $ 118.2 $ 98.4 |
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"): 2022 2021 2020 Numerator: Numerator for both basic and diluted EPS attributable to HNI Corporation net income $ 123.9 $ 59.8 $ 41.9 Denominators: Denominator for basic EPS weighted-average common shares outstanding 41.7 43.4 42.7 Potentially dilutive shares from stock-based compensation plans 0.5 0.5 0.3 Denominator for diluted EPS 42.2 44.0 43.0 Earnings per share – basic $ 2.97 $ 1.38 $ 0.98 Earnings per share – diluted $ 2.94 $ 1.36 $ 0.98 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive: 2022 2021 2020 Common stock equivalents excluded because their inclusion would be anti-dilutive 2.0 1.6 3.1 |
Schedule of Insurance Reserves | The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows: December 31, 2022 January 1, 2022 Current - "Accounts payable and accrued expenses" $ 5.2 $ 5.8 Non-current - "Other Long-Term Liabilities" 18.6 20.5 Total general, auto, product, and workers’ compensation liabilities $ 23.8 $ 26.3 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue from contracts with customers disaggregated by product category is as follows: 2022 2021 2020 Systems and storage $ 889.6 $ 833.2 $ 741.2 Seating 473.7 481.7 489.3 Other 123.0 119.0 135.2 Total workplace furnishings 1,486.2 1,434.0 1,365.7 Residential building products 875.6 750.4 589.7 $ 2,361.8 $ 2,184.4 $ 1,955.4 |
Contract with Customer, Asset and Liability | Contract assets and contract liabilities were as follows: December 31, January 1, Trade receivables (1) $ 218.4 $ 240.0 Contract assets (current) (2) $ 2.9 $ 1.5 Contract assets (long-term) (3) $ 29.8 $ 18.2 Contract liabilities - Customer deposits (4) $ 27.3 $ 27.2 Contract liabilities - Accrued rebate and marketing programs (4) $ 31.3 $ 31.5 The index below indicates the line item in the Consolidated Balance Sheets where contract assets and contract liabilities are reported: (1) "Receivables" (2) "Prepaid expenses and other current assets" (3) "Other Assets" (4) "Accounts payable and accrued expenses" Changes in contract asset and contract liability balances during the year ended December 31, 2022 were as follows: Contract assets increase (decrease) Contract liabilities (increase) decrease Contract assets recognized $ 15.9 $ — Reclassification of contract assets to contra-revenue (2.9) — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (115.7) Contract liabilities paid — 116.0 Cash received in advance and not recognized as revenue — (144.9) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 137.2 Impact of divestiture of business — 7.6 Net change $ 13.0 $ 0.1 Changes in contract asset and contract liability balances during the year ended January 1, 2022 were as follows: Contract assets increase (decrease) Contract liabilities (increase) decrease Contract assets recognized $ 17.3 $ — Reclassification of contract assets to contra-revenue (0.9) — Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied — (121.7) Contract liabilities paid — 122.1 Cash received in advance and not recognized as revenue — (115.2) Reclassification of cash received in advance to revenue as a result of performance obligations satisfied — 109.9 Impact of business combination — (0.8) Net change $ 16.4 $ (5.6) The increase in contract assets in 2022 and 2021 is due to payments made in connection with multi-year distribution agreements in the workplace furnishings segment. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Assets and Liabilities Disposed | The assets and liabilities of Lamex which were disposed of in conjunction with the sale are as follows: As of Assets: Cash and cash equivalents $ 5.5 Receivables 20.1 Allowance for doubtful accounts (0.5) Inventories, net 6.9 Prepaid expenses and other current assets 6.4 Buildings 6.2 Machinery and equipment 25.9 Accumulated depreciation (17.0) Right-of-use - Operating Leases 5.8 Goodwill and Other Intangible Assets, net 10.9 Total Assets $ 70.4 Liabilities: Accounts payable and accrued expenses $ 36.1 Current lease obligations - Operating 1.7 Long-Term Lease Obligations - Operating 4.9 Deferred Income Taxes 0.1 Total Liabilities $ 42.7 |
Schedule of Asset Acquisition | The purchase price allocation for Trinity and OGC, and estimated amortization periods of identified intangible assets as of the respective dates of acquisition is as follows: Trinity OGC Fair Value Amortization Period Fair Value Amortization Period Cash $ — $ 0.3 Inventories 1.9 4.5 Receivables 4.6 1.8 Prepaid expenses and other current assets — 1.2 Property, plant, and equipment 0.3 0.5 Accounts payable and accrued expenses (1.7) (2.8) Goodwill 14.2 2.4 Customer lists 12.0 13 Years 4.9 10 Years Trade names — 2.5 10 Years Total net assets $ 31.3 $ 15.3 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The Corporation’s cash payments for interest, income taxes, and non-cash investing and financing activities are as follows : 2022 2021 2020 Cash paid for: Interest $ 9.2 $ 7.6 $ 7.5 Income taxes $ 31.1 $ 26.4 $ 31.4 Changes in accrued expenses due to: Purchases of property and equipment $ 1.4 $ 0.2 $ 6.4 Purchases of capitalized software $ (1.4) $ 0.0 $ 0.2 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following: December 31, 2022 January 1, 2022 Goodwill, net $ 305.9 $ 297.3 Definite-lived intangible assets, net 118.4 147.6 Indefinite-lived intangible assets 15.5 26.5 Total goodwill and other intangible assets, net $ 439.8 $ 471.5 |
Schedule of Goodwill | The changes in the carrying amount of goodwill, by reporting segment, are as follows: Workplace Furnishings Residential Building Products Total Balance as of January 2, 2021 Goodwill $ 168.5 $ 197.0 $ 365.5 Accumulated impairment losses (72.9) (0.1) (73.0) Net goodwill balance as of January 2, 2021 $ 95.6 $ 196.8 $ 292.4 Goodwill acquired / measurement period adjustments (6.2) 16.9 10.7 Impairment losses (5.8) — (5.8) Balance as of January 1, 2022 Goodwill 162.3 213.8 376.1 Accumulated impairment losses (78.6) (0.1) (78.8) Net goodwill balance as of January 1, 2022 $ 83.6 $ 213.7 $ 297.3 Goodwill acquired (disposed) / measurement period adjustments (13.6) 8.6 (5.0) Accumulated impairment losses disposed 13.6 — 13.6 Balance as of December 31, 2022 Goodwill 148.7 222.4 371.1 Accumulated impairment losses (65.0) (0.1) (65.2) Net goodwill balance as of December 31, 2022 $ 83.6 $ 222.3 $ 305.9 |
Schedule of Finite-Lived Intangible Assets by Major Class | The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets" in the Corporation’s Consolidated Balance Sheets: December 31, 2022 January 1, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Software $ 194.4 $ 122.5 $ 71.9 $ 196.8 $ 102.1 $ 94.7 Trademarks and trade names 14.3 5.9 8.4 14.3 4.6 9.7 Customer lists and other 80.2 42.1 38.1 109.6 66.4 43.3 Net definite-lived intangible assets $ 288.8 $ 170.4 $ 118.4 $ 320.7 $ 173.0 $ 147.6 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense is reflected in "Selling and administrative expenses" in the Consolidated Statements of Comprehensive Income and was as follows: 2022 2021 2020 Capitalized software $ 24.4 $ 23.6 $ 19.3 Other definite-lived intangibles $ 6.5 $ 6.5 $ 5.0 |
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: 2023 2024 2025 2026 2027 Amortization expense $ 25.7 $ 22.5 $ 20.2 $ 16.8 $ 11.6 |
Schedule of Indefinite-Lived Intangible Assets | These indefinite-lived intangible assets are reflected in "Goodwill and Other Intangible Assets" in the Consolidated Balance Sheets: December 31, 2022 January 1, 2022 Trademarks and trade names $ 15.5 $ 26.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt is as follows: December 31, 2022 January 1, 2022 Revolving credit facility with interest at a variable rate (December 31, 2022 - 5.6%; January 1, 2022 - 1.1%) $ 89.1 $ 75.0 Fixed rate notes due in 2025 with an interest rate of 4.22% 50.0 50.0 Fixed rate notes due in 2028 with an interest rate of 4.40% 50.0 50.0 Other amounts 1.3 3.2 Deferred debt issuance costs (0.3) (0.4) Total debt 190.1 177.8 Less: Current maturities 1.3 3.2 Long-term debt $ 188.8 $ 174.6 |
Schedule of Maturities of Long-term Debt | Aggregate maturities of debt are as follows: 2023 2024 2025 2026 2027 Thereafter Maturities of debt $ 1.3 $ — $ 50.0 $ — $ 89.1 $ 50.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes, including those related to non-controlling interest, are as follows: 2022 2021 2020 Current: Federal $ 29.8 $ 14.1 $ 18.4 State 8.3 4.0 6.0 Foreign 0.3 0.8 0.1 Current provision 38.5 18.8 24.5 Deferred: Federal (13.1) (0.7) (9.1) State (2.8) 0.4 (2.4) Foreign 0.0 (0.1) (0.6) Deferred provision (15.9) (0.4) (12.1) Total income tax expense $ 22.5 $ 18.5 $ 12.5 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate are explained as follows: 2022 2021 2020 Federal statutory tax expense $ 30.7 $ 16.4 $ 11.4 State taxes, net of federal tax effect 5.6 3.7 2.4 Credit for research activities (4.2) (4.0) (3.9) Valuation allowance (7.1) (0.2) 1.3 Goodwill impairment — 0.1 1.5 Executive compensation limitation 1.4 1.2 0.5 Sale of foreign subsidiary (4.2) — — Other – net 0.3 1.2 (0.7) Total income tax expense $ 22.5 $ 18.5 $ 12.5 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Corporation’s deferred tax liabilities and assets are as follows: December 31, January 1, Deferred Taxes Allowance for doubtful accounts $ 0.7 $ 0.5 Compensation 7.2 7.3 Inventory differences 1.2 3.1 Stock-based compensation 7.9 7.9 Accrued post-retirement benefit obligations 4.4 5.7 Vacation accrual 3.9 3.2 Warranty accrual 4.2 4.4 Tax loss and tax credit carryforwards 5.8 10.2 Capital loss carryforward 0.1 2.1 Lease liability 27.3 23.4 Payroll deferral — 2.1 Research and development capitalization 16.3 — Other 2.6 8.0 Total deferred tax assets $ 81.7 $ 77.9 Deferred income (5.6) (5.0) Goodwill and other intangible assets (48.1) (49.7) Prepaid expenses (6.6) (6.5) Right of use asset (24.7) (23.1) Tax over book depreciation (53.0) (56.6) Total deferred tax liabilities $ (137.9) $ (141.0) Valuation allowance (4.2) (11.3) Total net deferred tax liabilities $ (60.4) $ (74.3) Long-term net deferred tax assets 0.7 0.7 Long-term net deferred tax liabilities (61.0) (75.0) Total net deferred tax liabilities $ (60.4) $ (74.3) |
Summary of Valuation Allowance | The valuation allowance, which primarily relates to foreign deferred tax assets, is as follows: Balance at beginning of period Charged to expenses Balance at end of period Year ended December 31, 2022 $ 11.3 $ (7.1) $ 4.2 Year ended January 1, 2022 $ 11.5 $ (0.2) $ 11.3 Year ended January 2, 2021 $ 10.3 $ 1.3 $ 11.5 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2022 2021 Balance at beginning of period $ 2.2 $ 2.2 Increases in positions taken in a prior period — 0.1 New positions taken in a current period 0.5 0.6 Decrease due to lapse of statute of limitations (0.5) (0.7) Balance at end of period $ 2.2 $ 2.2 |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value | Financial instruments measured at fair value were as follows: Fair value as of measurement date Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs Balance as of December 31, 2022 Cash and cash equivalents (including money market funds) (1) $ 17.4 $ 17.4 $ — $ — Government securities (2) $ 5.6 $ — $ 5.6 $ — Corporate bonds (2) $ 7.2 $ — $ 7.2 $ — Deferred stock-based compensation (4) $ (4.7) $ — $ (4.7) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Balance as of January 1, 2022 Cash and cash equivalents (including money market funds) (1) $ 52.3 $ 52.3 $ — $ — Government securities (2) $ 5.5 $ — $ 5.5 $ — Corporate bonds (2) $ 7.8 $ — $ 7.8 $ — Derivative financial instruments - liability (3) $ (1.0) $ — $ (1.0) $ — Deferred stock-based compensation (4) $ (8.1) $ — $ (8.1) $ — Put option liability (5) $ (5.1) $ — $ — $ (5.1) Amounts in parentheses indicate liabilities. The index below indicates the line item in the Consolidated Balance Sheets where the financial instruments are reported: (1) "Cash and cash equivalents" (2) Current portion - "Short-term investments"; Long-term portion - "Other Assets" (3) Current portion - "Accounts payable and accrued expenses"; Long-term portion - "Other Long-Term Liabilities" (4) Current portion - "Current maturities of other long-term obligations"; Long-term portion - "Other Long-Term Liabilities" (5) "Other Long-Term Liabilities" |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Loss Table | The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable: Foreign Currency Unrealized Gains Pension and Post-retirement Derivative Financial Accumulated Other Balance as of December 28, 2019 $ (2.9) $ 0.1 $ (5.8) $ 0.5 $ (8.1) Other comprehensive income (loss) before reclassifications 1.4 0.4 (1.5) (3.2) (2.9) Tax (expense) or benefit — (0.1) 0.3 0.8 1.0 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.4 (0.0) 0.2 0.2 0.8 Balance as of January 2, 2021 $ (1.1) $ 0.4 $ (6.7) $ (1.8) $ (9.2) Other comprehensive income (loss) before reclassifications 0.4 (0.3) 1.2 0.4 1.7 Tax (expense) or benefit — 0.1 (0.3) (0.1) (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of tax — (0.0) 0.3 0.7 1.1 Balance as of January 1, 2022 $ (0.7) $ 0.1 $ (5.4) $ (0.7) $ (6.8) Other comprehensive income (loss) before reclassifications (2.4) (0.9) 5.3 1.1 3.2 Tax (expense) or benefit — 0.2 (1.3) (0.3) (1.3) Amounts reclassified from accumulated other comprehensive income (loss), net of tax (3.3) (0.0) 0.2 (0.0) (3.1) Balance as of December 31, 2022 $ (6.4) $ (0.6) $ (1.1) $ 0.1 $ (8.0) Amounts in parentheses indicate reductions to equity. |
Schedule Of Reclassification out of Accumulated Other Comprehensive Income | The following table details the reclassifications from accumulated other comprehensive income (loss): Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Statement Where Net Income is Presented 2022 2021 2020 Derivative financial instruments Interest rate swap Interest expense, net $ 0.1 $ (1.0) $ (0.3) Income tax expense (0.0) 0.2 0.1 Unrealized gains on debt securities Gain on sale of debt securities Selling and administrative expenses 0.0 0.0 0.0 Income tax expense (0.0) (0.0) (0.0) Pension and post-retirement liabilities Amortization of loss Selling and administrative expenses (0.3) (0.5) (0.3) Income tax expense 0.1 0.1 0.1 Foreign currency translation Lamex divestiture Gain on sale of subsidiary 3.3 — — Foreign entity reorganization Selling and administrative expenses — — (0.4) Net of tax $ 3.1 $ (1.1) $ (0.8) Amounts in parentheses indicate reductions to profit. |
Schedule of Stock by Class | The following table provides the average price per share issued under the MSPP: 2022 2021 2020 Average price per share $ 26.50 $ 34.49 $ 25.30 |
Schedule of Dividends Declared and Paid Per Share | The Corporation declared and paid cash dividends per common share as follows: 2022 2021 2020 Dividends per common shares $ 1.27 $ 1.24 $ 1.22 |
Schedule of Repurchase Agreements | The following table summarizes shares repurchased and settled by the Corporation: 2022 2021 2020 Shares repurchased 1.7 1.5 0.2 Average price per share $ 38.11 $ 39.89 $ 29.83 Cash purchase price $ (63.9) $ (60.4) $ (6.4) Purchases unsettled as of year end — 1.3 — Prior year purchases settled in current year (1.3) — (0.4) Shares repurchased per cash flow $ (65.2) $ (59.2) $ (6.8) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs | Compensation cost charged against operations for the Plans and the 2017 MSPP described in "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity" in the Notes to Consolidated Financial Statements was as follows: 2022 2021 2020 Compensation cost $ 9.0 $ 12.9 $ 7.8 The total income tax benefit recognized in the Consolidated Statements of Comprehensive Income for share-based compensation arrangements was as follows: 2022 2021 2020 Income tax benefit $ 2.0 $ 3.1 $ 1.9 The following table details deferred compensation, which is a combination of cash and stock, and the affected line item in the Consolidated Balance Sheets where deferred compensation is presented: December 31, 2022 January 1, 2022 Current maturities of other long-term obligations $ 0.5 $ 1.5 Other long-term liabilities 6.6 9.0 Total deferred compensation $ 7.0 $ 10.5 Total fair-market value of deferred compensation $ 4.7 $ 8.1 |
Schedule of Share-based Compensation, Restricted Stock Units Activity | The following table summarizes the changes in RSUs (shares in thousands, per share amounts in dollars): Number of Shares Weighted-Average Grant Date Fair Value Nonvested as of December 28, 2019 22 $ 38.41 Granted 174 36.78 Vested (7) 40.77 Forfeited (6) 37.50 Nonvested as of January 2, 2021 182 $ 36.80 Granted 430 37.02 Vested (63) 37.09 Forfeited (5) 32.90 Nonvested as of January 1, 2022 545 $ 36.98 Granted 164 43.05 Vested (141) 36.99 Forfeited (32) 37.75 Nonvested as of December 31, 2022 535 $ 38.79 2022 2021 2020 Value of shares vested $ 5.2 $ 2.3 $ 0.3 |
Share-based Payment Arrangement, Performance Shares, Activity | The following table summarizes the changes in PSUs (shares in thousands, per share amounts in dollars): Number of Shares Weighted-Average Grant Date Fair Value Nonvested as of December 28, 2019 — $ — Granted 157 37.64 Forfeited (9) 38.08 Nonvested as of January 2, 2021 148 $ 37.62 Granted 164 36.99 Forfeited (2) 37.61 Nonvested as of January 1, 2022 309 $ 37.29 Granted 143 43.67 Forfeited (24) 39.60 Nonvested as of December 31, 2022 428 $ 39.29 |
Schedule of Valuation Assumptions | Stock-based compensation expense related to stock options was estimated on the date of grant using the Black-Scholes option-pricing model with various assumptions. Expected volatilities were based on historical volatility as the Corporation does not expect that future volatility over the expected term of the options is likely to differ from the past. The Corporation used a calculation method based on the historical daily frequency for a period of time equal to the expected term. The Corporation used the current dividend yield as there are no plans to substantially increase or decrease its dividends. The Corporation used historical exercise experience to determine the expected term. The risk-free interest rate was selected based on yields from treasury securities as published by the Federal Reserve equal to the expected term of the options. The amount of stock-based compensation expense recognized during a period is also based on the portion of the stock options that are ultimately expected to vest. The Corporation estimates pre-vesting forfeitures at the time of grant by analyzing historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the changes in outstanding stock options (shares in thousands, per share amounts in dollars): Number of Shares Weighted Average Exercise Price Outstanding as of December 28, 2019 3,223 $ 39.24 Exercised (189) 29.24 Forfeited or Expired (28) 42.38 Outstanding as of January 2, 2021 3,006 $ 39.84 Exercised (815) 35.04 Forfeited or Expired (1) 39.77 Outstanding as of January 1, 2022 2,191 $ 41.62 Exercised (64) 33.35 Forfeited or Expired (8) 42.65 Outstanding as of December 31, 2022 2,119 $ 41.86 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the Corporation’s non-vested stock options and changes during the year are presented below (shares in thousands, per share amounts in dollars): Number of Shares Weighted Average Grant-Date Fair Value Nonvested as of January 1, 2022 956 $ 9.79 Vested (485) 9.71 Forfeited (3) 9.88 Nonvested as of December 31, 2022 469 $ 9.87 |
Stock Option Vested or Expected to Vest and are Exercisable | Information about stock options expected to vest or currently exercisable is as follows (shares in thousands, per share amounts in dollars): December 31, 2022 Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Exercisable Period Aggregate Intrinsic Value Expected to vest 466 $ 39.74 6.1 $ 0.0 Exercisable 1,650 $ 42.46 3.8 $ 0.0 |
Schedule of Share-based Compensation Arrangement Other Information | Other information for the last three years is as follows: 2022 2021 2020 Total fair value of options vested $ 4.7 $ 3.3 $ 3.6 Total intrinsic value of options exercised $ 0.5 $ 5.4 $ 1.5 Cash received from exercise of stock options $ 2.1 $ 28.5 $ 5.5 Tax benefit realized from exercise of stock options $ 0.1 $ 1.0 $ 0.4 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Costs of Retirement Plans | The following table reconciles the annual contributions: 2022 2021 2020 Stock contribution $ 5.1 $ 7.1 $ 6.9 Cash contribution 25.1 17.8 19.9 Total annual contribution $ 30.1 $ 25.0 $ 26.8 |
Post-Retirement Health Care (Ta
Post-Retirement Health Care (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Activity in Benefit Obligation and Plan Assets | The following table sets forth the activity and reporting location of the benefit obligation and plan assets: 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 23.3 $ 23.4 Service cost 0.6 0.6 Interest cost 0.6 0.5 Benefits paid (1.1) (1.1) Actuarial gain (6.0) (0.2) Benefit obligation at end of year $ 17.3 $ 23.3 Change in plan assets Fair value at beginning of year $ — $ — Actual return on assets — — Employer contribution 1.1 1.1 Transferred out — — Benefits paid (1.1) (1.1) Fair value at end of year $ — $ — Funded Status of Plan $ (17.3) $ (23.3) Amounts recognized in the Statement of Financial Position consist of: Current liabilities $ 1.2 $ 1.1 Non-current liabilities $ 16.2 $ 22.1 Change in Accumulated Other Comprehensive Income (Loss) (before tax): Amount disclosed at beginning of year $ 3.3 $ 3.7 Actuarial gain (6.0) (0.2) Amortization of transition amount (0.1) (0.2) Amount disclosed at end of year $ (2.8) $ 3.3 |
Schedule of Expected Benefit Payments | Estimated future benefit payments are as follows: Fiscal 2023 $ 1.2 Fiscal 2024 $ 1.1 Fiscal 2025 $ 1.1 Fiscal 2026 $ 1.1 Fiscal 2027 $ 1.2 Fiscal 2028 - 2032 $ 6.5 |
Schedule of Expected Contributions | Expected contributions are as follows: Fiscal 2023 $ 1.2 |
Schedule of Assumptions Used | The discount rate used was as follows: 2022 2021 2020 Discount rate 5.2 % 2.8 % 2.4 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Costs Included in the Condensed Consolidated Statements on Comprehensive Income and Cash Paid for Amounts Included in Measurements of Lease Liabilities and the Leased Assets Obtained in Exchange for New Operating and Finance Lease Liabilities | Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following: Classification 2022 2021 2020 Operating lease costs Fixed Cost of sales $ 2.9 $ 2.3 $ 1.8 Selling and administrative expenses 22.7 23.1 25.4 Short-term / variable Cost of sales 1.3 1.0 0.4 Selling and administrative expenses 1.5 0.7 1.8 Finance lease costs Amortization Cost of sales 1.2 0.9 0.5 Selling and administrative, and interest expense 2.5 1.9 0.3 Less: Sublease income Cost of sales 0.0 (0.2) — Selling and administrative expenses (0.3) (0.3) (0.1) Total lease costs $ 31.9 $ 29.4 $ 30.0 The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities: 2022 2021 2020 Cash paid for amounts included in the measurements of lease liabilities Operating cash flows from operating / finance leases $ 22.6 $ 24.7 $ 31.5 Financing cash flows from finance leases $ 3.3 $ 2.7 $ 0.7 Leased assets obtained in exchange for new operating / finance lease liabilities $ 39.2 $ 49.3 $ 27.3 |
Maturities of Finance Lease Liabilities | Maturity of lease liabilities as of December 31, 2022 is as follows: Operating Leases (a) Finance Leases (b) Total 2023 $ 22.8 $ 4.0 $ 26.8 2024 21.3 3.6 24.9 2025 20.3 3.2 23.5 2026 15.8 1.0 16.8 2027 11.4 0.1 11.5 Thereafter 17.6 — 17.6 Total lease payments 109.3 11.9 121.2 Less: Interest (10.1) (0.5) (10.6) Present value of lease liabilities $ 99.2 $ 11.4 $ 110.6 (a) At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $62.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced, which are excluded from operating lease liabilities. These amounts primarily relate to a manufacturing facility under construction. See "Note 15. Guarantees, Commitments, and Contingencies" in the Notes to Consolidated Financial Statements for further information. (b) At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $2.4 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities. |
Maturities of Operating Lease Liabilities | Maturity of lease liabilities as of December 31, 2022 is as follows: Operating Leases (a) Finance Leases (b) Total 2023 $ 22.8 $ 4.0 $ 26.8 2024 21.3 3.6 24.9 2025 20.3 3.2 23.5 2026 15.8 1.0 16.8 2027 11.4 0.1 11.5 Thereafter 17.6 — 17.6 Total lease payments 109.3 11.9 121.2 Less: Interest (10.1) (0.5) (10.6) Present value of lease liabilities $ 99.2 $ 11.4 $ 110.6 (a) At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $62.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced, which are excluded from operating lease liabilities. These amounts primarily relate to a manufacturing facility under construction. See "Note 15. Guarantees, Commitments, and Contingencies" in the Notes to Consolidated Financial Statements for further information. (b) At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $2.4 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities. |
Weighted Average Lease Terms and Discount Rates, Lessee | The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of December 31, 2022: Weighted-Average Discount Rate Weighted-Average Remaining Lease Term Operating leases 3.3 % 5.6 Finance leases 2.6 % 3.3 |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segment Data | Reportable segment data reconciled to the Corporation’s consolidated financial statements was as follows: 2022 2021 2020 Net Sales: Workplace furnishings $ 1,486.2 $ 1,434.0 $ 1,365.7 Residential building products 875.6 750.4 589.7 Total $ 2,361.8 $ 2,184.4 $ 1,955.4 Income (Loss) Before Income Taxes: Workplace furnishings $ 3.4 $ (0.5) $ (5.0) Residential building products 158.7 141.9 109.3 General corporate (57.3) (55.9) (43.0) Gain on sale of subsidiary 50.4 — — Operating income 155.2 85.4 61.4 Interest expense, net 8.8 7.2 7.0 Total $ 146.4 $ 78.3 $ 54.4 Depreciation and Amortization Expense: Workplace furnishings $ 45.7 $ 47.8 $ 44.6 Residential building products 12.6 10.0 9.4 General corporate 25.9 25.3 23.7 Total $ 84.2 $ 83.1 $ 77.7 Capital Expenditures (including capitalized software): Workplace furnishings $ 40.4 $ 34.8 $ 24.2 Residential building products 16.2 16.1 8.2 General corporate 11.7 15.6 9.4 Total $ 68.4 $ 66.5 $ 41.8 Identifiable Assets: Workplace furnishings $ 761.5 $ 809.0 $ 762.8 Residential building products 493.0 479.5 381.6 General corporate 160.0 209.5 273.7 Total $ 1,414.5 $ 1,497.9 $ 1,418.0 |
Restructuring and Impairment (T
Restructuring and Impairment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment | Restructuring and impairment charges were as follows: Classification 2022 2021 2020 Workplace Furnishings Inventory valuation Cost of sales $ 8.1 $ 7.4 $ — Facility set-up costs Cost of sales 0.7 0.2 — Long-lived asset disposal and impairment Restructuring and impairment charges 5.2 — — Severance Restructuring and impairment charges 0.5 0.2 — Goodwill and intangible asset impairment Restructuring and impairment charges — 5.8 38.8 General Corporate Severance Restructuring and impairment charges — 0.3 — Investment impairment Restructuring and impairment charges 1.0 — — Total $ 15.5 $ 14.0 $ 38.8 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | $ 17.4 | $ 52.3 |
Short-term investments | 2 | 1.4 |
Other Assets | 12.3 | 14.4 |
Amortized cost basis of debt securities | 13.7 | 13.2 |
Debt securities | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 2 | 1.4 |
Other Assets | 10.8 | 11.9 |
Equity investment | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other Assets | 1.5 | 2.5 |
Cash and money market accounts | ||
Schedule of Investments [Line Items] | ||
Cash and cash equivalents | 17.4 | 52.3 |
Short-term investments | 0 | 0 |
Other Assets | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 2.8 | $ 5.5 | $ 3.6 |
Current provision and adjustments | 1.7 | (0.9) | 3.6 |
Amounts written off | (1) | (1.9) | (1.7) |
Recoveries and other | 0.2 | 0.1 | 0 |
Divestiture of business | (0.5) | 0 | 0 |
Balance at end of period | $ 3.2 | $ 2.8 | $ 5.5 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Inventory, Net [Abstract] | ||
Finished products | $ 121 | $ 137.2 |
Materials and work in process | 112.8 | 92 |
Last-in, first-out ("LIFO") allowance | (53.7) | (47.6) |
Inventories, net | $ 180.1 | $ 181.6 |
Inventory valued by the LIFO costing method | 91% | 84% |
FIFO inventory allowance | $ 14.9 | $ 19.9 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 53.3 | $ 53 | $ 53.4 |
Land improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Land improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 12 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Accounts Payable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Accounting Policies [Abstract] | ||
Trade accounts payable | $ 165.3 | $ 233.8 |
Compensation | 47.1 | 55.4 |
Profit sharing and retirement | 11.6 | 22.9 |
Accrued marketing programs | 31.3 | 31.5 |
Accrued freight | 12.5 | 19.1 |
Customer deposits | 27.3 | 27.2 |
Other accrued expenses | 72.6 | 83.9 |
Accounts payable and accrued expenses | $ 367.7 | $ 473.8 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Product Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 16 | $ 16.1 | $ 15.9 |
Accruals for warranties issued during period | 9.3 | 7.7 | 9.4 |
Adjustments related to pre-existing warranties | (1.1) | (0.2) | 0.1 |
Settlements made during the period | (9.4) | (7.6) | (9.3) |
Balance at end of period | 14.8 | 16 | 16.1 |
Product Warranties Disclosures [Abstract] | |||
Current - in the next twelve months | 5.4 | 5.4 | |
Long-term - beyond one year | 9.4 | 10.6 | |
Standard product warranty accrual | $ 14.8 | $ 16 | $ 16.1 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Accounting Policies [Abstract] | |||
Research and development costs | $ 47.8 | $ 39.4 | $ 35.3 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Freight Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Cost of sales | $ 1,526.9 | $ 1,427 | $ 1,234.2 |
Freight expense | |||
Disaggregation of Revenue [Line Items] | |||
Cost of sales | $ 142 | $ 118.2 | $ 98.4 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Numerator: | |||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income | $ 123.9 | $ 59.8 | $ 41.9 |
Denominators: | |||
Denominator for basic EPS weighted- average common shares outstanding (in shares) | 41.7 | 43.4 | 42.7 |
Potentially dilutive shares from stock-based compensation plans (in shares) | 0.5 | 0.5 | 0.3 |
Denominator for diluted EPS (in shares) | 42.2 | 44 | 43 |
Earnings per share - basic (in dollars per share) | $ 2.97 | $ 1.38 | $ 0.98 |
Earnings per share - diluted (in dollars per share) | $ 2.94 | $ 1.36 | $ 0.98 |
Stock Compensation Plan | |||
Denominators: | |||
Common stock equivalents excluded because their inclusion would be anti-dilutive (in shares) | 2 | 1.6 | 3.1 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Self-Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Accounting Policies [Abstract] | ||
Current - "Accounts payable and accrued expenses" | $ 5.2 | $ 5.8 |
Non-current - "Other Long-Term Liabilities" | 18.6 | 20.5 |
Total general, auto, product, and workers’ compensation liabilities | 23.8 | 26.3 |
Self-insured member health benefits liabilities | $ 7.2 | $ 5.9 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | $ 2,361.8 | $ 2,184.4 | $ 1,955.4 |
Workplace Furnishings | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 1,486.2 | 1,434 | 1,365.7 |
Workplace Furnishings | Systems and storage | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 889.6 | 833.2 | 741.2 |
Workplace Furnishings | Seating | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 473.7 | 481.7 | 489.3 |
Workplace Furnishings | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 123 | 119 | 135.2 |
Residential building products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | $ 875.6 | $ 750.4 | $ 589.7 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables | $ 218.4 | $ 240 |
Contract assets (current) | 2.9 | 1.5 |
Contract assets (long-term) | 29.8 | 18.2 |
Contract liability, customer deposits | 27.3 | 27.2 |
Contract liabilities | $ 31.3 | $ 31.5 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Change in Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Contract assets increase (decrease) | ||
Contract assets recognized | $ 15.9 | $ 17.3 |
Reclassification of contract assets to contra-revenue | (2.9) | (0.9) |
Net change | 13 | 16.4 |
Contract liabilities (increase) decrease | ||
Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied | (115.7) | (121.7) |
Contract liabilities paid | 116 | 122.1 |
Cash received in advance and not recognized as revenue | (144.9) | (115.2) |
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied | 137.2 | 109.9 |
Impact of divestiture of business | 7.6 | |
Impact of business combination | (0.8) | |
Net change | $ 0.1 | $ (5.6) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized related to contract liabilities | $ 26.7 | $ 21.1 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jul. 20, 2022 | Dec. 17, 2021 | Oct. 14, 2021 | Jul. 31, 2022 | Jun. 30, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 31, 2022 | |
Dickerson Heart Products | ||||||||
Asset Acquisition [Line Items] | ||||||||
Payments for asset acquisitions | $ 8 | |||||||
Goodwill acquired / measurement period adjustments | $ 7.6 | |||||||
Outdoor Greatroom Company | ||||||||
Asset Acquisition [Line Items] | ||||||||
Payments for asset acquisitions | $ 15 | |||||||
Goodwill acquired / measurement period adjustments | $ 2.4 | |||||||
Trinity Fireside | ||||||||
Asset Acquisition [Line Items] | ||||||||
Payments for asset acquisitions | $ 31 | |||||||
Goodwill acquired / measurement period adjustments | $ 14.2 | |||||||
Decrease in inventory | $ 0.2 | |||||||
Trnity and OGC | ||||||||
Asset Acquisition [Line Items] | ||||||||
Increase in goodwill | 0.9 | |||||||
Increase in purchase price | $ 0 | $ 0.8 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Lamex | ||||||||
Asset Acquisition [Line Items] | ||||||||
Consideration | $ 75 | |||||||
Gain on sale | $ 50.4 | |||||||
Transaction-related expenses | $ 6 | |||||||
Foreign currency translation benefit | $ 3.3 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Disposal of Assets and Liabilities (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Lamex $ in Millions | Jul. 20, 2022 USD ($) |
Assets: | |
Cash and cash equivalents | $ 5.5 |
Receivables | 20.1 |
Allowance for doubtful accounts | (0.5) |
Inventories, net | 6.9 |
Prepaid expenses and other current assets | 6.4 |
Accumulated depreciation | (17) |
Right-of-use - Operating Leases | 5.8 |
Goodwill and Other Intangible Assets, net | 10.9 |
Total Assets | 70.4 |
Liabilities: | |
Accounts payable and accrued expenses | 36.1 |
Current lease obligations - Operating | 1.7 |
Long-Term Lease Obligations - Operating | 4.9 |
Deferred Income Taxes | 0.1 |
Total Liabilities | 42.7 |
Buildings | |
Assets: | |
Property, plant and equipment | 6.2 |
Machinery and equipment | |
Assets: | |
Property, plant and equipment | $ 25.9 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Purchase Price Allocation and Estimated Amortization (Details) - USD ($) $ in Millions | Dec. 17, 2021 | Oct. 14, 2021 |
Trinity Fireside | ||
Asset Acquisition [Line Items] | ||
Cash | $ 0 | |
Inventories | 1.9 | |
Receivables | 4.6 | |
Prepaid expenses and other current assets | 0 | |
Property, plant, and equipment | 0.3 | |
Accounts payable and accrued expenses | (1.7) | |
Goodwill acquired / measurement period adjustments | 14.2 | |
Total net assets | 31.3 | |
Trinity Fireside | Customer lists | ||
Asset Acquisition [Line Items] | ||
Intangible assets | $ 12 | |
Amortization Period | 13 years | |
Trinity Fireside | Trade names | ||
Asset Acquisition [Line Items] | ||
Intangible assets | $ 0 | |
Outdoor Greatroom Company | ||
Asset Acquisition [Line Items] | ||
Cash | $ 0.3 | |
Inventories | 4.5 | |
Receivables | 1.8 | |
Prepaid expenses and other current assets | 1.2 | |
Property, plant, and equipment | 0.5 | |
Accounts payable and accrued expenses | (2.8) | |
Goodwill acquired / measurement period adjustments | 2.4 | |
Total net assets | 15.3 | |
Outdoor Greatroom Company | Customer lists | ||
Asset Acquisition [Line Items] | ||
Intangible assets | $ 4.9 | |
Amortization Period | 10 years | |
Outdoor Greatroom Company | Trade names | ||
Asset Acquisition [Line Items] | ||
Intangible assets | $ 2.5 | |
Amortization Period | 10 years |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Cash paid for: | |||
Interest | $ 9.2 | $ 7.6 | $ 7.5 |
Income taxes | 31.1 | 26.4 | 31.4 |
Changes in accrued expenses due to: | |||
Purchases of property and equipment | 1.4 | 0.2 | 6.4 |
Purchases of capitalized software | $ (1.4) | $ 0 | $ 0.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, net | $ 305.9 | $ 297.3 | $ 292.4 |
Definite-lived intangible assets, net | 118.4 | 147.6 | |
Indefinite-lived intangible assets | 15.5 | 26.5 | |
Total goodwill and other intangible assets, net | $ 439.8 | $ 471.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, gross beginning balance | $ 376.1 | $ 365.5 |
Accumulated impairment losses | (78.8) | (73) |
Goodwill, net beginning balance | 297.3 | 292.4 |
Goodwill acquired (disposed) / measurement period adjustments | (5) | 10.7 |
Accumulated impairment losses disposed | (5.8) | |
Accumulated impairment losses disposed | 13.6 | |
Goodwill, gross ending balance | 371.1 | 376.1 |
Accumulated impairment losses | (65.2) | (78.8) |
Goodwill, net ending balance | 305.9 | 297.3 |
Workplace Furnishings | ||
Goodwill [Roll Forward] | ||
Goodwill, gross beginning balance | 162.3 | 168.5 |
Accumulated impairment losses | (78.6) | (72.9) |
Goodwill, net beginning balance | 83.6 | 95.6 |
Goodwill acquired (disposed) / measurement period adjustments | (13.6) | (6.2) |
Accumulated impairment losses disposed | (5.8) | |
Accumulated impairment losses disposed | 13.6 | |
Goodwill, gross ending balance | 148.7 | 162.3 |
Accumulated impairment losses | (65) | (78.6) |
Goodwill, net ending balance | 83.6 | 83.6 |
Residential Building Products | ||
Goodwill [Roll Forward] | ||
Goodwill, gross beginning balance | 213.8 | 197 |
Accumulated impairment losses | (0.1) | (0.1) |
Goodwill, net beginning balance | 213.7 | 196.8 |
Goodwill acquired (disposed) / measurement period adjustments | 8.6 | 16.9 |
Accumulated impairment losses disposed | 0 | |
Accumulated impairment losses disposed | 0 | |
Goodwill, gross ending balance | 222.4 | 213.8 |
Accumulated impairment losses | (0.1) | (0.1) |
Goodwill, net ending balance | $ 222.3 | $ 213.7 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) |
Goodwill [Line Items] | |||
Goodwill | $ 305.9 | $ 297.3 | $ 292.4 |
Reporting Unit Evaluated For Impairment | |||
Goodwill [Line Items] | |||
Goodwill | $ 33.6 | ||
Reporting Unit Evaluated For Impairment | Valuation Discounted Cash Flow And Market | Measurement Input, Discount Rate | |||
Goodwill [Line Items] | |||
Goodwill, measurement input | 0.14 | ||
Decrease in estimated fair value from 100 basis point increase | $ 5 | ||
Reporting Unit Evaluated For Impairment | Valuation Discounted Cash Flow And Market | Measurement Input, Terminal Growth Rate | |||
Goodwill [Line Items] | |||
Goodwill, measurement input | 0.03 | ||
Decrease in estimated fair value from 100 basis point decrease | $ 3 | ||
Minimum | Reporting Unit Evaluated For Impairment | Valuation Discounted Cash Flow And Market | Measurement Input, Near-Term Growth Rates | |||
Goodwill [Line Items] | |||
Goodwill, measurement input | 0.04 | ||
Maximum | Reporting Unit Evaluated For Impairment | Valuation Discounted Cash Flow And Market | Measurement Input, Near-Term Growth Rates | |||
Goodwill [Line Items] | |||
Goodwill, measurement input | 0.12 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Net definite-lived intangible assets | ||
Gross | $ 288.8 | $ 320.7 |
Accumulated Amortization | 170.4 | 173 |
Net | 118.4 | 147.6 |
Amortization expense | ||
2023 | 25.7 | |
2024 | 22.5 | |
2025 | 20.2 | |
2026 | 16.8 | |
2027 | 11.6 | |
Software | ||
Net definite-lived intangible assets | ||
Gross | 194.4 | 196.8 |
Accumulated Amortization | 122.5 | 102.1 |
Net | 71.9 | 94.7 |
Trademarks and trade names | ||
Net definite-lived intangible assets | ||
Gross | 14.3 | 14.3 |
Accumulated Amortization | 5.9 | 4.6 |
Net | 8.4 | 9.7 |
Customer lists and other | ||
Net definite-lived intangible assets | ||
Gross | 80.2 | 109.6 |
Accumulated Amortization | 42.1 | 66.4 |
Net | $ 38.1 | $ 43.3 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Capitalized software | $ 24.4 | $ 23.6 | $ 19.3 |
Other definite-lived intangibles | $ 6.5 | $ 6.5 | $ 5 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets - Indefinite Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | $ 15.5 | $ 26.5 |
Trademarks and trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and trade names | $ 15.5 | $ 26.5 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 190.1 | $ 177.8 |
Deferred debt issuance costs | (0.3) | (0.4) |
Less: Current maturities | 1.3 | 3.2 |
Long-term debt | $ 188.8 | $ 174.6 |
Revolving credit facility with interest at a variable rate (December 31, 2022 - 5.6%; January 1, 2022 - 1.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.60% | 1.10% |
Total debt | $ 89.1 | $ 75 |
Fixed rate notes due in 2025 with an interest rate of 4.22% | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.22% | |
Total debt | $ 50 | 50 |
Fixed rate notes due in 2028 with an interest rate of 4.40% | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.40% | |
Total debt | $ 50 | 50 |
Other amounts | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1.3 | $ 3.2 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Debt (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 1.3 |
2024 | 0 |
2025 | 50 |
2026 | 0 |
2027 | 89.1 |
Thereafter | $ 50 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | May 31, 2018 | Dec. 31, 2022 | Jan. 01, 2022 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 190.1 | $ 177.8 | |
Debt issuance costs current | 0.3 | ||
Debt issuance cost noncurrent | $ 1.2 | ||
Interest coverage ratio | 4 | ||
Consolidated leverage ratio | 3.5 | ||
Revolving credit facility with interest at a variable rate (December 31, 2022 - 5.6%; January 1, 2022 - 1.1%) | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 89.1 | $ 75 | |
Outstanding revolving credit facility | 89 | ||
Maximum line of credit facility borrowing capacity | 400 | ||
Remaining borrowing capacity | $ 311 | ||
Interest rate | 5.60% | 1.10% | |
Private Placement Notes | |||
Debt Instrument [Line Items] | |||
Fair value of debt | $ 99 | ||
Debt issuance cost noncurrent | 0.3 | ||
Borrowings | $ 100 | ||
Fixed rate notes due in 2025 with an interest rate of 4.22% | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 50 | ||
Debt instrument term | 7 years | ||
Interest rate | 4.22% | ||
Fixed rate notes due in 2028 with an interest rate of 4.40% | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 50 | ||
Debt instrument term | 10 years | ||
Interest rate | 4.40% |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Current: | |||
Federal | $ 29.8 | $ 14.1 | $ 18.4 |
State | 8.3 | 4 | 6 |
Foreign | 0.3 | 0.8 | 0.1 |
Current provision | 38.5 | 18.8 | 24.5 |
Deferred: | |||
Federal | (13.1) | (0.7) | (9.1) |
State | (2.8) | 0.4 | (2.4) |
Foreign | 0 | (0.1) | (0.6) |
Deferred provision | (15.9) | (0.4) | (12.1) |
Total income tax expense | $ 22.5 | $ 18.5 | $ 12.5 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax expense | $ 30.7 | $ 16.4 | $ 11.4 |
State taxes, net of federal tax effect | 5.6 | 3.7 | 2.4 |
Credit for research activities | (4.2) | (4) | (3.9) |
Valuation allowance | (7.1) | (0.2) | 1.3 |
Goodwill impairment | 0 | 0.1 | 1.5 |
Executive compensation limitation | 1.4 | 1.2 | 0.5 |
Sale of foreign subsidiary | (4.2) | 0 | 0 |
Other – net | 0.3 | 1.2 | (0.7) |
Total income tax expense | $ 22.5 | $ 18.5 | $ 12.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Tax Disclosure [Abstract] | |
Valuation allowance | $ (7.1) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Income Tax Disclosure [Abstract] | ||
Allowance for doubtful accounts | $ 0.7 | $ 0.5 |
Compensation | 7.2 | 7.3 |
Inventory differences | 1.2 | 3.1 |
Stock-based compensation | 7.9 | 7.9 |
Accrued post-retirement benefit obligations | 4.4 | 5.7 |
Vacation accrual | 3.9 | 3.2 |
Warranty accrual | 4.2 | 4.4 |
Tax loss and tax credit carryforwards | 5.8 | 10.2 |
Capital loss carryforward | 0.1 | 2.1 |
Lease liability | 27.3 | 23.4 |
Payroll deferral | 0 | 2.1 |
Research and development capitalization | 16.3 | 0 |
Other | 2.6 | 8 |
Total deferred tax assets | 81.7 | 77.9 |
Deferred income | (5.6) | (5) |
Goodwill and other intangible assets | (48.1) | (49.7) |
Prepaid expenses | (6.6) | (6.5) |
Right of use asset | (24.7) | (23.1) |
Tax over book depreciation | (53) | (56.6) |
Total deferred tax liabilities | (137.9) | (141) |
Valuation allowance | (4.2) | (11.3) |
Long-term net deferred tax assets | 0.7 | 0.7 |
Long-term net deferred tax liabilities | (61) | (75) |
Total net deferred tax liabilities | $ (60.4) | $ (74.3) |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance for Deferred Tax Asset (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 11.3 | $ 11.5 | $ 10.3 |
Charged to expenses | (7.1) | (0.2) | 1.3 |
Balance at end of period | $ 4.2 | $ 11.3 | $ 11.5 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 2.2 | $ 2.2 |
Increases in positions taken in a prior period | 0 | 0.1 |
New positions taken in a current period | 0.5 | 0.6 |
Decrease due to lapse of statute of limitations | (0.5) | (0.7) |
Balance at end of period | $ 2.2 | $ 2.2 |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents (including money market funds) | $ 17.4 | $ 52.3 |
Fair Value measurements on a recurring basis | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents (including money market funds) | 17.4 | 52.3 |
Derivative financial instruments - liability | (1) | |
Deferred stock-based compensation | (4.7) | (8.1) |
Fair Value measurements on a recurring basis | Government Securities | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 5.6 | 5.5 |
Fair Value measurements on a recurring basis | Corporate Bonds | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 7.2 | 7.8 |
Fair Value measurements on a recurring basis | Put option liability | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | (5.1) | (5.1) |
Fair Value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents (including money market funds) | 17.4 | 52.3 |
Derivative financial instruments - liability | 0 | |
Deferred stock-based compensation | 0 | 0 |
Fair Value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Government Securities | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate Bonds | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value measurements on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | Put option liability | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | 0 | 0 |
Fair Value measurements on a recurring basis | Significant other observable inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents (including money market funds) | 0 | 0 |
Derivative financial instruments - liability | (1) | |
Deferred stock-based compensation | (4.7) | (8.1) |
Fair Value measurements on a recurring basis | Significant other observable inputs (Level 2) | Government Securities | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 5.6 | 5.5 |
Fair Value measurements on a recurring basis | Significant other observable inputs (Level 2) | Corporate Bonds | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 7.2 | 7.8 |
Fair Value measurements on a recurring basis | Significant other observable inputs (Level 2) | Put option liability | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | 0 | 0 |
Fair Value measurements on a recurring basis | Significant unobservable inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents (including money market funds) | 0 | 0 |
Derivative financial instruments - liability | 0 | |
Deferred stock-based compensation | 0 | 0 |
Fair Value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Government Securities | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Corporate Bonds | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value measurements on a recurring basis | Significant unobservable inputs (Level 3) | Put option liability | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial instruments - liability | $ (5.1) | $ (5.1) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 590 | $ 590.7 | $ 584.4 |
Ending Balance | 616.8 | 590 | 590.7 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (6.8) | (9.2) | (8.1) |
Other comprehensive income (loss) before reclassifications | 3.2 | 1.7 | (2.9) |
Tax (expense) or benefit | (1.3) | (0.3) | 1 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (3.1) | 1.1 | 0.8 |
Ending Balance | (8) | (6.8) | (9.2) |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (0.7) | (1.1) | (2.9) |
Other comprehensive income (loss) before reclassifications | (2.4) | 0.4 | 1.4 |
Tax (expense) or benefit | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (3.3) | 0 | 0.4 |
Ending Balance | (6.4) | (0.7) | (1.1) |
Unrealized Gains (Losses) on Debt Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 0.1 | 0.4 | 0.1 |
Other comprehensive income (loss) before reclassifications | (0.9) | (0.3) | 0.4 |
Tax (expense) or benefit | 0.2 | 0.1 | (0.1) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 0 |
Ending Balance | (0.6) | 0.1 | 0.4 |
Pension and Post-retirement Liabilities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (5.4) | (6.7) | (5.8) |
Other comprehensive income (loss) before reclassifications | 5.3 | 1.2 | (1.5) |
Tax (expense) or benefit | (1.3) | (0.3) | 0.3 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0.2 | 0.3 | 0.2 |
Ending Balance | (1.1) | (5.4) | (6.7) |
Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (0.7) | (1.8) | 0.5 |
Other comprehensive income (loss) before reclassifications | 1.1 | 0.4 | (3.2) |
Tax (expense) or benefit | (0.3) | (0.1) | 0.8 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0.7 | 0.2 |
Ending Balance | $ 0.1 | $ (0.7) | $ (1.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) hour shares | Dec. 30, 2017 shares | May 31, 2007 shares | |
Schedule of Shareholders' Equity [Line Items] | ||||
Term of employment agreement | 2 years | |||
Common Stock | ||||
Schedule of Shareholders' Equity [Line Items] | ||||
Remaining authorized repurchase amount | $ | $ 234,000 | |||
Certain officers | ||||
Schedule of Shareholders' Equity [Line Items] | ||||
Change in control percentage | 20% | |||
Percent of board members | 0.3333 | |||
Term of employment agreement | 2 years | |||
Number of times annual salary | 200% | |||
Corporation's Chairman, President and CEO | ||||
Schedule of Shareholders' Equity [Line Items] | ||||
Number of times annual salary | 300% | |||
Director plan | ||||
Schedule of Shareholders' Equity [Line Items] | ||||
Available for future issuance (shares) | shares | 300,000 | |||
Purchase Plan | ||||
Schedule of Shareholders' Equity [Line Items] | ||||
Available for future issuance (shares) | shares | 800,000 | |||
Rights to purchase stock, minimum working hours per week | hour | 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% | |||
Maximum amount fair value for purchase of common stock | $ | $ 25 | |||
Shares available for future issuance (shares) | shares | 300,000 | |||
Interest rate swap | ||||
Schedule of Shareholders' Equity [Line Items] | ||||
Cash proceeds from termination of derivative | $ | $ 400 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Reclassifications from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | $ (22.5) | $ (18.5) | $ (12.5) |
Gain on sale of subsidiary | 50.4 | 0 | 0 |
Selling and administrative expenses | (723.4) | (665.6) | (620.9) |
Net income | 123.9 | 59.8 | 41.9 |
Reclassifications from accumulated other comprehensive income (loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 3.1 | (1.1) | (0.8) |
Reclassifications from accumulated other comprehensive income (loss) | Derivative financial instruments | Interest rate swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense, net | 0.1 | (1) | (0.3) |
Income tax expense | 0 | 0.2 | 0.1 |
Reclassifications from accumulated other comprehensive income (loss) | Unrealized Gains (Losses) on Debt Securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | 0 | 0 | 0 |
Selling and administrative expenses | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive income (loss) | Pension and Post-retirement Liabilities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense | 0.1 | 0.1 | 0.1 |
Selling and administrative expenses | (0.3) | (0.5) | (0.3) |
Reclassifications from accumulated other comprehensive income (loss) | Foreign Currency Translation Adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain on sale of subsidiary | 3.3 | 0 | 0 |
Selling and administrative expenses | $ 0 | $ 0 | $ (0.4) |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Director Plan Issued Common Stock (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Director plan | |||
Class of Stock [Line Items] | |||
Corporation common stock issued (shares) | 32 | 25 | 38 |
Accumulated Other Comprehensi_7
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Dividends Declared and Paid per Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Equity [Abstract] | |||
Dividends (in dollars per share) | $ 1.27 | $ 1.24 | $ 1.22 |
Accumulated Other Comprehensi_8
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Common Stock Issued (Details) - Purchase Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Class of Stock [Line Items] | |||
Shares of common stock issued (shares) | 88 | 68 | 93 |
Average price per share (in dollars per share) | $ 26.50 | $ 34.49 | $ 25.30 |
Accumulated Other Comprehensi_9
Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity - Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Class of Stock [Line Items] | |||
Shares repurchased per cash flow | $ 65.2 | $ 59.2 | $ 6.8 |
Common Stock | |||
Class of Stock [Line Items] | |||
Stock repurchased during period (shares) | 1,700,000 | 1,500,000 | 200,000 |
Average price per share (in dollars per share) | $ 38.11 | $ 39.89 | $ 29.83 |
Cash purchase price | $ (63.9) | $ (60.4) | $ (6.4) |
Purchases unsettled as of year end | 0 | 1.3 | 0 |
Prior year purchases settled in current year | (1.3) | 0 | (0.4) |
Shares repurchased per cash flow | $ 65.2 | $ 59.2 | $ 6.8 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 0 | 0 | 0 | |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Unrecognized compensation cost | $ 4.5 | |||
Nonvested stock, weighted average recognition period | 8 months 12 days | |||
PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Unrecognized compensation cost | $ 2.3 | |||
Nonvested stock, weighted average recognition period | 10 months 24 days | |||
Nonvested Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 0.1 | |||
Nonvested stock, weighted average recognition period | 1 month 6 days | |||
Cliff vesting | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 3 years | |||
Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance (shares) | 2,600,000 | |||
Exercised period (years) | 10 years | |||
Plan | Cliff vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (years) | 4 years |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Compensation cost | $ 9 | $ 12.9 | $ 7.8 |
Stock-Based Compensation - Inco
Stock-Based Compensation - Income Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Income tax benefit | $ 2 | $ 3.1 | $ 1.9 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Details) - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Number of Shares | |||
Nonvested, Beginning Balance (shares) | 545 | 182 | 22 |
Granted (shares) | 164 | 430 | 174 |
Vested (shares) | (141) | (63) | (7) |
Forfeited (shares) | (32) | (5) | (6) |
Nonvested, Ending Balance (shares) | 535 | 545 | 182 |
Weighted Average Grant-Date Fair Value | |||
Outstanding, Beginning Balance (in dollars per share) | $ 36.98 | $ 36.80 | $ 38.41 |
Granted (in dollars per share) | 43.05 | 37.02 | 36.78 |
Vested (in dollars per share) | 36.99 | 37.09 | 40.77 |
Forfeited (in dollars per share) | 37.75 | 32.90 | 37.50 |
Outstanding, Ending Balance (in dollars per share) | $ 38.79 | $ 36.98 | $ 36.80 |
Stock-Based Compensation - RSU'
Stock-Based Compensation - RSU's Vested (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of shares vested | $ 5.2 | $ 2.3 | $ 0.3 |
Stock-Based Compensation - PSU
Stock-Based Compensation - PSU Stock Option Activity (Details) - PSU - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Number of Shares | |||
Nonvested, Beginning Balance (shares) | 309 | 148 | 0 |
Granted (shares) | 143 | 164 | 157 |
Forfeited (shares) | (24) | (2) | (9) |
Nonvested, Ending Balance (shares) | 428 | 309 | 148 |
Weighted Average Grant-Date Fair Value | |||
Outstanding, Beginning Balance (in dollars per share) | $ 37.29 | $ 37.62 | $ 0 |
Granted (in dollars per share) | 43.67 | 36.99 | 37.64 |
Forfeited (in dollars per share) | 39.60 | 37.61 | 38.08 |
Outstanding, Ending Balance (in dollars per share) | $ 39.29 | $ 37.29 | $ 37.62 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Stock Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Number of Shares | |||
Outstanding, Beginning Balance (shares) | 2,191 | 3,006 | 3,223 |
Exercised (shares) | (64) | (815) | (189) |
Forfeited or Expired (shares) | (8) | (1) | (28) |
Outstanding, Ending Balance (shares) | 2,119 | 2,191 | 3,006 |
Weighted Average Grant-Date Fair Value | |||
Outstanding, Beginning Balance (in dollars per share) | $ 41.62 | $ 39.84 | $ 39.24 |
Exercised (in dollars per share) | 33.35 | 35.04 | 29.24 |
Forfeited or Expired (in dollars per share) | 42.65 | 39.77 | 42.38 |
Outstanding, Ending Balance (in dollars per share) | $ 41.86 | $ 41.62 | $ 39.84 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-vested Stock Option Activity (Details) - Nonvested Awards shares in Thousands | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Shares | |
Nonvested, Beginning Balance (shares) | shares | 956 |
Vested (shares) | shares | (485) |
Forfeited (shares) | shares | (3) |
Nonvested, Ending Balance (shares) | shares | 469 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 9.79 |
Vested (in dollars per share) | $ / shares | 9.71 |
Forfeited (in dollars per share) | $ / shares | 9.88 |
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 9.87 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Vested or Expected to Vest and are Exercisable (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Expected to vest | |
Number (shares) | shares | 466,000 |
Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 39.74 |
Weighted-Average Remaining Exercisable Period (years) | 6 years 1 month 6 days |
Aggregate Intrinsic Value | $ | $ 0 |
Exercisable | |
Number (shares) | shares | 1,650,000 |
Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 42.46 |
Weighted-Average Remaining Exercisable Period (years) | 3 years 9 months 18 days |
Aggregate Intrinsic Value | $ | $ 0 |
Stock-Based Compensation - Othe
Stock-Based Compensation - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Total fair value of options vested | $ 4.7 | $ 3.3 | $ 3.6 |
Total intrinsic value of options exercised | 0.5 | 5.4 | 1.5 |
Cash received from exercise of stock options | 2.1 | 28.5 | 5.5 |
Tax benefit realized from exercise of stock options | $ 0.1 | $ 1 | $ 0.4 |
Stock-Based Compensation - Defe
Stock-Based Compensation - Deferred Compensation (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Share-Based Payment Arrangement [Abstract] | ||
Current maturities of other long-term obligations | $ 0.5 | $ 1.5 |
Other long-term liabilities | 6.6 | 9 |
Total deferred compensation | 7 | 10.5 |
Total fair-market value of deferred compensation | $ 4.7 | $ 8.1 |
Retirement Benefits (Details)
Retirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Retirement Benefits [Abstract] | |||
Stock contribution | $ 5.1 | $ 7.1 | $ 6.9 |
Cash contribution | 25.1 | 17.8 | 19.9 |
Total annual contribution | $ 30.1 | $ 25 | $ 26.8 |
Post-Retirement Health Care - S
Post-Retirement Health Care - Schedule of Cost of Retirement Plans (Details) - Postretirement Health Coverage - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Change in benefit obligation | ||
Benefit obligation at beginning of year | $ 23.3 | $ 23.4 |
Service cost | 0.6 | 0.6 |
Interest cost | 0.6 | 0.5 |
Benefits paid | (1.1) | (1.1) |
Actuarial gain | (6) | (0.2) |
Benefit obligation at end of year | 17.3 | 23.3 |
Change in plan assets | ||
Fair value at beginning of year | 0 | 0 |
Actual return on assets | 0 | 0 |
Employer contribution | 1.1 | 1.1 |
Transferred out | 0 | 0 |
Benefits paid | (1.1) | (1.1) |
Fair value at end of year | 0 | 0 |
Funded Status of Plan | (17.3) | (23.3) |
Amounts recognized in the Statement of Financial Position consist of: | ||
Current liabilities | 1.2 | 1.1 |
Non-current liabilities | 16.2 | 22.1 |
Change in Accumulated Other Comprehensive Income (Loss) (before tax): | ||
Amount disclosed at beginning of year | 3.3 | 3.7 |
Actuarial gain | (6) | (0.2) |
Amortization of transition amount | (0.1) | (0.2) |
Amount disclosed at end of year | $ (2.8) | $ 3.3 |
Post-Retirement Health Care - E
Post-Retirement Health Care - Estimated Future Benefit Payments (Details) - Postretirement Health Coverage $ in Millions | Dec. 31, 2022 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 1.2 |
2024 | 1.1 |
2025 | 1.1 |
2026 | 1.1 |
2027 | 1.2 |
2028 - 2032 | 6.5 |
Expected contributions Fiscal 2023 | $ 1.2 |
Post-Retirement Health Care Pos
Post-Retirement Health Care Post-Retirement Health Care - Valuation Assumptions (Details) | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Postretirement Health Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.20% | 2.80% | 2.40% |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 option | |
Real Estate | |
Lessee, Lease, Description [Line Items] | |
Number of options to extend | 1 |
Real Estate | Leased Assets | Assets | |
Lessee, Lease, Description [Line Items] | |
Concentration risk, percentage | 85% |
Real Estate | Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Real Estate | Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 10 years |
Equipment | Leased Assets | Assets | |
Lessee, Lease, Description [Line Items] | |
Concentration risk, percentage | 15% |
Leases - Lease Costs included i
Leases - Lease Costs included in the Condensed Consolidated Statements on Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Finance lease costs | |||
Total lease costs | $ 31.9 | $ 29.4 | $ 30 |
Cost of sales | |||
Lessee, Lease, Description [Line Items] | |||
Fixed | 2.9 | 2.3 | 1.8 |
Short-term / variable | 1.3 | 1 | 0.4 |
Finance lease costs | |||
Amortization | 1.2 | 0.9 | 0.5 |
Less: Sublease income | 0 | (0.2) | 0 |
Selling and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Fixed | 22.7 | 23.1 | 25.4 |
Short-term / variable | 1.5 | 0.7 | 1.8 |
Finance lease costs | |||
Less: Sublease income | (0.3) | (0.3) | (0.1) |
Selling and administrative, and interest expense | |||
Finance lease costs | |||
Amortization | $ 2.5 | $ 1.9 | $ 0.3 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 22.8 |
2024 | 21.3 |
2025 | 20.3 |
2026 | 15.8 |
2027 | 11.4 |
Thereafter | 17.6 |
Total lease payments | 109.3 |
Less: Interest | (10.1) |
Present value of lease liabilities | 99.2 |
Finance Leases | |
2023 | 4 |
2024 | 3.6 |
2025 | 3.2 |
2026 | 1 |
2027 | 0.1 |
Thereafter | 0 |
Total lease payments | 11.9 |
Less: Interest | (0.5) |
Present value of lease liabilities | 11.4 |
Total | |
2023 | 26.8 |
2024 | 24.9 |
2025 | 23.5 |
2026 | 16.8 |
2027 | 11.5 |
Thereafter | 17.6 |
Total lease payments | 121.2 |
Less: Interest | (10.6) |
Present value of operating lease and finance lease liabilities | 110.6 |
Payments for leases with option to extend | 0 |
Operating lease minimum lease payments for leases signed but not yet commenced | 62.3 |
Finance lease payments related to options to extend lease terms | 0 |
Finance lease minimum lease payments for leases signed but not yet commenced | $ 2.4 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Terms and Discount Rates for Operating and Finance Leases (Details) | Dec. 31, 2022 |
Weighted-Average Discount Rate | |
Operating leases | 3.30% |
Finance leases | 2.60% |
Weighted-Average Remaining Lease Term (years) | |
Operating leases | 5 years 7 months 6 days |
Finance leases | 3 years 3 months 18 days |
Leases - Cash Paid for Amounts
Leases - Cash Paid for Amounts Included in the Measurements of Lease Liabilities and Leased Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Cash paid for amounts included in the measurements of lease liabilities | |||
Operating cash flows from operating / finance leases | $ 22.6 | $ 24.7 | $ 31.5 |
Financing cash flows from finance leases | 3.3 | 2.7 | 0.7 |
Leased assets obtained in exchange for new operating / finance lease liabilities | $ 39.2 | $ 49.3 | $ 27.3 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Apr. 02, 2022 | |
Guarantor Obligations [Line Items] | ||
Aggregate amount guaranteed | $ 12 | |
Minimum payments | $ 109.3 | |
New Facility | ||
Guarantor Obligations [Line Items] | ||
Minimum payments | $ 60 | |
Term of contract | 15 years | |
Minimum | ||
Guarantor Obligations [Line Items] | ||
Term of guarantees | 1 year | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Term of guarantees | 5 years | |
Letter of Credit | ||
Guarantor Obligations [Line Items] | ||
Letters of credit | $ 27 | |
Trade Letters Of Credit And Bankers Acceptances | ||
Guarantor Obligations [Line Items] | ||
Letters of credit | $ 0 |
Reportable Segment Informatio_2
Reportable Segment Information - Business Segment Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Net sales | $ 2,361.8 | $ 2,184.4 | $ 1,955.4 |
Gain on sale of subsidiary | 50.4 | 0 | 0 |
Operating income | 155.2 | 85.4 | 61.4 |
Interest expense, net | 8.8 | 7.2 | 7 |
Total | 146.4 | 78.3 | 54.4 |
Depreciation and Amortization Expense: | 84.2 | 83.1 | 77.7 |
Capital Expenditures (including capitalized software): | 68.4 | 66.5 | 41.8 |
Identifiable Assets: | 1,414.5 | 1,497.9 | 1,418 |
Workplace furnishings | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,486.2 | 1,434 | 1,365.7 |
Residential building products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 875.6 | 750.4 | 589.7 |
Operating | Workplace furnishings | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,486.2 | 1,434 | 1,365.7 |
Operating profit | 3.4 | (0.5) | (5) |
Depreciation and Amortization Expense: | 45.7 | 47.8 | 44.6 |
Capital Expenditures (including capitalized software): | 40.4 | 34.8 | 24.2 |
Identifiable Assets: | 761.5 | 809 | 762.8 |
Operating | Residential building products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 875.6 | 750.4 | 589.7 |
Operating profit | 158.7 | 141.9 | 109.3 |
Depreciation and Amortization Expense: | 12.6 | 10 | 9.4 |
Capital Expenditures (including capitalized software): | 16.2 | 16.1 | 8.2 |
Identifiable Assets: | 493 | 479.5 | 381.6 |
General corporate | |||
Segment Reporting Information [Line Items] | |||
General corporate | (57.3) | (55.9) | (43) |
Depreciation and Amortization Expense: | 25.9 | 25.3 | 23.7 |
Capital Expenditures (including capitalized software): | 11.7 | 15.6 | 9.4 |
Identifiable Assets: | $ 160 | $ 209.5 | $ 273.7 |
Restructuring and Impairment (D
Restructuring and Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 15.5 | $ 14 | $ 38.8 |
Restructuring reserve | 0.5 | 0.5 | |
Inventory valuation | Workplace Furnishings | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 8.1 | 7.4 | 0 |
Facility set-up costs | Workplace Furnishings | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0.7 | 0.2 | 0 |
Long-lived asset disposal and impairment | Workplace Furnishings | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 5.2 | 0 | 0 |
Severance | Workplace Furnishings | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0.5 | 0.2 | 0 |
Severance | General Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 0.3 | 0 |
Goodwill and intangible asset impairment | Workplace Furnishings | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 5.8 | 38.8 |
Investment impairment | General Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 1 | $ 0 | $ 0 |
Uncategorized Items - hni-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |