HNI CORPORATION AND SUBSIDIARIES
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INDEX
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PART I. FINANCIAL INFORMATION
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Page
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Item 1. Financial Statements (Unaudited)
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Condensed Consolidated Balance Sheets - July 4, 2015 and January 3, 2015
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Condensed Consolidated Statements of Comprehensive Income - Three Months and Six Months Ended July 4, 2015 and June 28, 2014
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Condensed Consolidated Statements of Cash Flows - Six Months Ended July 4, 2015 and June 28, 2014
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Notes to Condensed Consolidated Financial Statements
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 4. Controls and Procedures
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PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
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Item 1A. Risk Factors
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3. Defaults Upon Senior Securities - None
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-
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Item 4. Mine Safety Disclosures - Not Applicable
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-
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Item 5. Other Information - None
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-
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Item 6. Exhibits
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SIGNATURES
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EXHIBIT INDEX
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HNI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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July 4,
2015 |
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January 3,
2015 |
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ASSETS
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(In thousands)
|
||||||
CURRENT ASSETS
|
|
|
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Cash and cash equivalents
|
$
|
33,438
|
|
|
$
|
34,144
|
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Short-term investments
|
5,252
|
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|
3,052
|
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Receivables
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274,606
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240,053
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Inventories
|
164,684
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121,791
|
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Deferred income taxes
|
16,915
|
|
|
17,310
|
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Prepaid expenses and other current assets
|
28,152
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39,209
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Total Current Assets
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523,047
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455,559
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PROPERTY, PLANT, AND EQUIPMENT
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Land and land improvements
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28,603
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27,329
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Buildings
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298,637
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298,170
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Machinery and equipment
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511,004
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492,646
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Construction in progress
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23,329
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|
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27,704
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861,573
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845,849
|
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Less accumulated depreciation
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540,851
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534,841
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Net Property, Plant, and Equipment
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320,722
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311,008
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GOODWILL
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279,374
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279,310
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OTHER ASSETS
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201,820
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193,457
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Total Assets
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$
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1,324,963
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$
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1,239,334
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HNI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
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Three Months Ended
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Six Months Ended
|
||||||||||||
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July 4,
2015 |
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June 28,
2014 |
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July 4,
2015 |
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June 28,
2014 |
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(In thousands, except share and per share data)
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(In thousands, except share and per share data)
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Net sales
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$
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568,226
|
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$
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509,143
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$
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1,091,703
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$
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961,344
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Cost of sales
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362,102
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328,010
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701,079
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625,039
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Gross profit
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206,124
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181,133
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390,624
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336,305
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Selling and administrative expenses
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167,278
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155,288
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335,982
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300,498
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(Gain) on sale of assets
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—
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|
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(1,346
|
)
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—
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(9,746
|
)
|
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Restructuring and impairment
|
(560
|
)
|
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10,282
|
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(183
|
)
|
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10,254
|
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Operating income
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39,406
|
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16,909
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54,825
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35,299
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Interest income
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119
|
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146
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209
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|
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216
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|
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Interest expense
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1,968
|
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2,187
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3,957
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|
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4,389
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Income before income taxes
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37,557
|
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14,868
|
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51,077
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31,126
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Income taxes
|
13,680
|
|
|
5,203
|
|
|
18,748
|
|
|
10,445
|
|
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Net income
|
23,877
|
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|
9,665
|
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32,329
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|
20,681
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Less: Net (loss) attributable to the noncontrolling interest
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(2
|
)
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(40
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)
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(28
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)
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(120
|
)
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Net income attributable to HNI Corporation
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$
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23,879
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$
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9,705
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$
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32,357
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$
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20,801
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Net income attributable to HNI Corporation per common share – basic
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$
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0.54
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$
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0.22
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$
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0.73
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$
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0.46
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Average number of common shares outstanding – basic
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44,416,008
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45,019,783
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44,359,898
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45,029,148
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Net income attributable to HNI Corporation per common share – diluted
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$
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0.52
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$
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0.21
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$
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0.71
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$
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0.45
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Average number of common shares outstanding – diluted
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45,620,984
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45,867,927
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45,573,952
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45,843,118
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Cash dividends per common share
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$
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0.265
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$
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0.25
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$
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0.515
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$
|
0.49
|
|
|
|
|
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|
|
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Other comprehensive income, net of tax: three months 2015 $185; 2014 $30; six months 2015 $319; 2014 $(18)
|
396
|
|
|
(49
|
)
|
|
715
|
|
|
398
|
|
||||
Comprehensive income
|
24,273
|
|
|
9,616
|
|
|
33,044
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|
|
21,079
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|
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Less: Comprehensive (loss) attributable to noncontrolling interest
|
(2
|
)
|
|
(40
|
)
|
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(28
|
)
|
|
(120
|
)
|
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Comprehensive income attributable to HNI Corporation
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$
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24,275
|
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$
|
9,656
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|
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$
|
33,072
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$
|
21,199
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HNI CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
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Six Months Ended
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July 4, 2015
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June 28, 2014
|
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(In thousands)
|
||||||
Net Cash Flows From (To) Operating Activities:
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|
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Net income
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$
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32,329
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$
|
20,681
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|
Noncash items included in net income:
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Depreciation and amortization
|
27,795
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26,952
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Other postretirement and post employment benefits
|
881
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|
620
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Stock-based compensation
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6,262
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4,752
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Excess tax benefits from stock compensation
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(1,552
|
)
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(144
|
)
|
||
Deferred income taxes
|
3,437
|
|
|
1,550
|
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(Gain) loss on sale, retirement and impairment of long-lived assets and intangibles, net
|
183
|
|
|
(581
|
)
|
||
Other – net
|
2,012
|
|
|
1,255
|
|
||
Net increase (decrease) in operating assets and liabilities
|
(106,618
|
)
|
|
(62,432
|
)
|
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Increase (decrease) in other liabilities
|
3,367
|
|
|
355
|
|
||
Net cash flows from (to) operating activities
|
(31,904
|
)
|
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(6,992
|
)
|
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|
|
|
|
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Net Cash Flows From (To) Investing Activities:
|
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|
|
|
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Capital expenditures
|
(33,732
|
)
|
|
(34,710
|
)
|
||
Proceeds from sale of property, plant and equipment
|
124
|
|
|
13,588
|
|
||
Capitalized software
|
(16,150
|
)
|
|
(16,412
|
)
|
||
Purchase of investments
|
(798
|
)
|
|
(798
|
)
|
||
Sales or maturities of investments
|
1,550
|
|
|
4,770
|
|
||
Net cash flows from (to) investing activities
|
(49,006
|
)
|
|
(33,562
|
)
|
||
|
|
|
|
||||
Net Cash Flows From (To) Financing Activities:
|
|
|
|
|
|
||
Proceeds from sales of HNI Corporation common stock
|
10,457
|
|
|
3,143
|
|
||
Withholdings related to net share settlements of equity based awards
|
(171
|
)
|
|
(79
|
)
|
||
Purchase of HNI Corporation common stock
|
(15,203
|
)
|
|
(13,051
|
)
|
||
Proceeds from note and long-term debt
|
347,929
|
|
|
100,473
|
|
||
Payments of note and long-term debt and other financing
|
(241,467
|
)
|
|
(63,787
|
)
|
||
Excess tax benefits from stock compensation
|
1,552
|
|
|
144
|
|
||
Dividends paid
|
(22,893
|
)
|
|
(22,041
|
)
|
||
Net cash flows from (to) financing activities
|
80,204
|
|
|
4,802
|
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
(706
|
)
|
|
(35,752
|
)
|
||
Cash and cash equivalents at beginning of period
|
34,144
|
|
|
65,030
|
|
||
Cash and cash equivalents at end of period
|
$
|
33,438
|
|
|
$
|
29,278
|
|
(In thousands)
|
|
July 4, 2015
|
|
January 3, 2015
|
||||
|
|
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Finished products
|
|
$
|
95,477
|
|
|
$
|
65,126
|
|
Materials and work in process
|
|
97,219
|
|
|
84,677
|
|
||
LIFO allowance
|
|
(28,012
|
)
|
|
(28,012
|
)
|
||
|
|
$
|
164,684
|
|
|
$
|
121,791
|
|
(In thousands)
|
|
Foreign Currency Translation Adjustment
|
|
Unrealized Gains (Losses) on Marketable Securities
|
|
Pension Postretirement Liability
|
|
Derivative Financial Instruments
|
|
Accumulated Other Comprehensive Income (Loss)
|
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Balance at January 3, 2015
|
|
$
|
2,223
|
|
|
$
|
37
|
|
|
$
|
(6,763
|
)
|
|
$
|
(872
|
)
|
|
$
|
(5,375
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
145
|
|
|
(2
|
)
|
|
—
|
|
|
(266
|
)
|
|
(123
|
)
|
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Amounts reclassified from accumulated other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
837
|
|
|
837
|
|
|||||
Balance at July 4, 2015
|
|
$
|
2,368
|
|
|
$
|
35
|
|
|
$
|
(6,763
|
)
|
|
$
|
(301
|
)
|
|
$
|
(4,661
|
)
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components
|
|
Affected Line Item in the Statement Where Net Income Is Presented
|
|
July 4, 2015
|
|
June 28, 2014
|
|
July 4, 2015
|
|
June 28, 2014
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diesel hedge
|
|
Selling and administrative expenses
|
|
$
|
(612
|
)
|
|
$
|
32
|
|
|
$
|
(1,307
|
)
|
|
$
|
87
|
|
|
|
Tax (expense) or benefit
|
|
229
|
|
|
(12
|
)
|
|
470
|
|
|
(32
|
)
|
||||
|
|
Net of tax
|
|
$
|
(383
|
)
|
|
$
|
20
|
|
|
$
|
(837
|
)
|
|
$
|
55
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands, except per share data)
|
|
July 4, 2015
|
|
June 28, 2014
|
|
July 4, 2015
|
|
June 28, 2014
|
||||||||
Numerators:
|
|
|
|
|
|
|
|
|
||||||||
Numerator for both basic and diluted EPS attributable to HNI Corporation net income
|
|
$
|
23,879
|
|
|
$
|
9,705
|
|
|
$
|
32,357
|
|
|
$
|
20,801
|
|
Denominators:
|
|
|
|
|
|
|
|
|
|
|
||||||
Denominator for basic EPS weighted-average common shares outstanding
|
|
44,416
|
|
|
45,020
|
|
|
44,360
|
|
|
45,029
|
|
||||
Potentially dilutive shares from stock-based compensation plans
|
|
1,205
|
|
|
848
|
|
|
1,214
|
|
|
813
|
|
||||
Denominator for diluted EPS
|
|
45,621
|
|
|
45,868
|
|
|
45,574
|
|
|
45,843
|
|
||||
Earnings per share – basic
|
|
$
|
0.54
|
|
|
$
|
0.22
|
|
|
$
|
0.73
|
|
|
$
|
0.46
|
|
Earnings per share – diluted
|
|
$
|
0.52
|
|
|
$
|
0.21
|
|
|
$
|
0.71
|
|
|
$
|
0.45
|
|
(In thousands)
|
|
Severance
|
|
Facility Exit Costs & Other
|
|
Total
|
||||||
Balance as of January 3, 2015
|
|
$
|
1,213
|
|
|
$
|
—
|
|
|
$
|
1,213
|
|
Restructuring charges
|
|
(788
|
)
|
|
605
|
|
|
(183
|
)
|
|||
Cash payments
|
|
(284
|
)
|
|
(589
|
)
|
|
(873
|
)
|
|||
Balance as of July 4, 2015
|
|
$
|
141
|
|
|
$
|
16
|
|
|
$
|
157
|
|
|
|
|
|
|
||||
(In thousands)
|
|
July 4, 2015
|
|
January 3, 2015
|
||||
Patents
|
|
$
|
18,945
|
|
|
$
|
18,945
|
|
Less: accumulated amortization
|
|
18,747
|
|
|
18,724
|
|
||
Net patents
|
|
198
|
|
|
221
|
|
||
Software
|
|
107,224
|
|
|
93,343
|
|
||
Less: accumulated amortization
|
|
19,379
|
|
|
17,711
|
|
||
Net software
|
|
87,845
|
|
|
75,632
|
|
||
Customer lists and other
|
|
126,750
|
|
|
125,095
|
|
||
Less: accumulated amortization
|
|
63,572
|
|
|
59,743
|
|
||
Net customer lists and other
|
|
63,178
|
|
|
65,352
|
|
||
Net definite lived intangible assets
|
|
$
|
151,221
|
|
|
$
|
141,205
|
|
(In millions)
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||
Amortization Expense
|
|
$
|
10.8
|
|
|
$
|
11.4
|
|
|
$
|
15.9
|
|
|
$
|
15.8
|
|
|
$
|
15.6
|
|
(In thousands)
|
|
Office
Furniture
|
|
Hearth
Products
|
|
Total
|
||||||
Balance as of January 3, 2015
|
|
|
|
|
|
|
||||||
Goodwill
|
|
$
|
149,713
|
|
|
$
|
181,901
|
|
|
$
|
331,614
|
|
Accumulated impairment losses
|
|
(52,161
|
)
|
|
(143
|
)
|
|
(52,304
|
)
|
|||
Net goodwill balance as of January 3, 2015
|
|
97,552
|
|
|
181,758
|
|
|
279,310
|
|
|||
Goodwill acquired
|
|
—
|
|
|
59
|
|
|
59
|
|
|||
Foreign currency translation adjustments
|
|
5
|
|
|
—
|
|
|
5
|
|
|||
Balance as of July 4, 2015
|
|
|
|
|
|
|
|
|
||||
Goodwill
|
|
149,718
|
|
|
181,960
|
|
|
331,678
|
|
|||
Accumulated impairment losses
|
|
(52,161
|
)
|
|
(143
|
)
|
|
(52,304
|
)
|
|||
Net goodwill balance as of July 4, 2015
|
|
$
|
97,557
|
|
|
$
|
181,817
|
|
|
$
|
279,374
|
|
|
|
Six Months Ended
|
||||||
(In thousands)
|
|
July 4, 2015
|
|
June 28, 2014
|
||||
Balance at beginning of period
|
|
$
|
16,719
|
|
|
$
|
13,840
|
|
Accruals for warranties issued during period
|
|
10,535
|
|
|
10,465
|
|
||
Adjustments related to pre-existing warranties
|
|
349
|
|
|
(14
|
)
|
||
Settlements made during the period
|
|
(11,139
|
)
|
|
(9,248
|
)
|
||
Balance at end of period
|
|
$
|
16,464
|
|
|
$
|
15,043
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
|
July 4, 2015
|
|
June 28, 2014
|
|
July 4, 2015
|
|
June 28, 2014
|
||||||||
Service cost
|
|
$
|
201
|
|
|
$
|
126
|
|
|
$
|
402
|
|
|
$
|
252
|
|
Interest cost
|
|
204
|
|
|
184
|
|
|
408
|
|
|
368
|
|
||||
Amortization of (gain)/loss
|
|
12
|
|
|
—
|
|
|
71
|
|
|
—
|
|
||||
Net periodic benefit cost
|
|
$
|
417
|
|
|
$
|
310
|
|
|
$
|
881
|
|
|
$
|
620
|
|
|
|
|
|
Asset (Liability) Fair Value
|
||||||
|
|
Balance Sheet Location
|
|
July 4, 2015
|
|
January 3, 2015
|
||||
Diesel fuel swap
|
|
Accounts payable and accrued expenses
|
|
$
|
(484
|
)
|
|
$
|
(1,374
|
)
|
Diesel fuel swap
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
—
|
|
||
Net balance at end of period
|
|
|
|
$
|
(484
|
)
|
|
$
|
(1,374
|
)
|
Derivatives in Cash Flow Hedge Relationship
|
|
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
|
|
Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
|
|
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion)
|
|
Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
||||||
Diesel fuel swap
|
|
$
|
(57
|
)
|
|
Selling and administrative expenses
|
|
$
|
(612
|
)
|
|
Selling and administrative expenses
|
|
$
|
—
|
|
Total
|
|
$
|
(57
|
)
|
|
|
|
$
|
(612
|
)
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives in Cash Flow Hedge Relationship
|
|
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
|
|
Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
|
|
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion)
|
|
Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
||||||
Diesel fuel swap
|
|
$
|
(416
|
)
|
|
Selling and administrative expenses
|
|
$
|
(1,307
|
)
|
|
Selling and administrative expenses
|
|
$
|
—
|
|
Total
|
|
$
|
(416
|
)
|
|
|
|
$
|
(1,307
|
)
|
|
|
|
$
|
—
|
|
Derivatives in Cash Flow Hedge Relationship
|
|
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
|
|
Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
|
|
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion)
|
|
Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
||||||
Diesel fuel swap
|
|
$
|
153
|
|
|
Selling and administrative expenses
|
|
$
|
32
|
|
|
Selling and administrative expenses
|
|
$
|
(3
|
)
|
Total
|
|
$
|
153
|
|
|
|
|
$
|
32
|
|
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives in Cash Flow Hedge Relationship
|
|
Before-tax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)
|
|
Locations of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
|
|
Before-Tax Gain (Loss) Reclassified from AOCI Into Income (Effective Portion)
|
|
Locations of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|
Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
||||||
Diesel fuel swap
|
|
$
|
55
|
|
|
Selling and administrative expenses
|
|
$
|
87
|
|
|
Selling and administrative expenses
|
|
$
|
(4
|
)
|
Total
|
|
$
|
55
|
|
|
|
|
$
|
87
|
|
|
|
|
$
|
(4
|
)
|
(In thousands)
|
|
Fair value as of measurement date
|
|
Quoted prices in active markets for identical assets
(Level 1)
|
|
Significant other observable inputs
(Level 2)
|
|
Significant unobservable inputs
(Level 3)
|
||||||||
Government securities
|
|
$
|
9,063
|
|
|
$
|
—
|
|
|
$
|
9,063
|
|
|
$
|
—
|
|
Corporate bonds
|
|
$
|
2,210
|
|
|
$
|
—
|
|
|
$
|
2,210
|
|
|
$
|
—
|
|
Derivative financial instruments
|
|
$
|
(484
|
)
|
|
$
|
—
|
|
|
$
|
(484
|
)
|
|
$
|
—
|
|
(In thousands)
|
|
Fair value as of measurement date
|
|
Quoted prices in active markets for identical assets
(Level 1)
|
|
Significant other observable inputs
(Level 2)
|
|
Significant unobservable inputs
(Level 3)
|
||||||||
Government securities
|
|
$
|
9,835
|
|
|
$
|
—
|
|
|
$
|
9,835
|
|
|
$
|
—
|
|
Corporate bonds
|
|
$
|
2,205
|
|
|
$
|
—
|
|
|
$
|
2,205
|
|
|
$
|
—
|
|
Derivative financial instruments
|
|
$
|
(1,374
|
)
|
|
$
|
—
|
|
|
$
|
(1,374
|
)
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
July 4, 2015
|
|
June 28, 2014
|
|
July 4, 2015
|
|
June 28, 2014
|
||||||||
Net Sales:
|
|
|
|
|
|
|
|
||||||||
Office Furniture
|
$
|
450,624
|
|
|
$
|
423,423
|
|
|
$
|
858,053
|
|
|
$
|
781,792
|
|
Hearth Products
|
117,602
|
|
|
85,720
|
|
|
233,650
|
|
|
179,552
|
|
||||
|
$
|
568,226
|
|
|
$
|
509,143
|
|
|
$
|
1,091,703
|
|
|
$
|
961,344
|
|
Operating Profit:
|
|
|
|
|
|
|
|
||||||||
Office furniture
|
39,791
|
|
|
18,242
|
|
|
59,943
|
|
|
34,735
|
|
||||
Hearth products
|
11,162
|
|
|
8,481
|
|
|
23,663
|
|
|
20,189
|
|
||||
Total operating profit
|
50,953
|
|
|
26,723
|
|
|
83,606
|
|
|
54,924
|
|
||||
Unallocated corporate expense
|
(13,396
|
)
|
|
(11,855
|
)
|
|
(32,529
|
)
|
|
(23,798
|
)
|
||||
Income before income taxes
|
$
|
37,557
|
|
|
$
|
14,868
|
|
|
$
|
51,077
|
|
|
$
|
31,126
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation & Amortization Expense:
|
|
|
|
|
|
|
|
||||||||
Office furniture
|
$
|
10,263
|
|
|
$
|
12,472
|
|
|
$
|
20,640
|
|
|
$
|
21,971
|
|
Hearth products
|
2,047
|
|
|
1,158
|
|
|
4,005
|
|
|
2,334
|
|
||||
General corporate
|
1,625
|
|
|
1,298
|
|
|
3,150
|
|
|
2,647
|
|
||||
|
$
|
13,935
|
|
|
$
|
14,928
|
|
|
$
|
27,795
|
|
|
$
|
26,952
|
|
|
|
|
|
|
|
|
|
||||||||
Capital Expenditures (including capitalized software):
|
|
|
|
|
|
|
|
||||||||
Office furniture
|
$
|
11,848
|
|
|
$
|
16,348
|
|
|
$
|
26,399
|
|
|
$
|
29,836
|
|
Hearth products
|
1,993
|
|
|
1,187
|
|
|
4,397
|
|
|
2,698
|
|
||||
General corporate
|
7,818
|
|
|
10,894
|
|
|
19,086
|
|
|
18,588
|
|
||||
|
$
|
21,659
|
|
|
$
|
28,429
|
|
|
$
|
49,882
|
|
|
$
|
51,122
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
As of
|
|
As of
|
||||||||
(In thousands)
|
|
|
|
|
July 4,
2015 |
|
January 3,
2015 |
||||||||
Identifiable Assets:
|
|
|
|
|
|
|
|
||||||||
Office furniture
|
|
|
|
|
$
|
788,899
|
|
|
$
|
724,293
|
|
||||
Hearth products
|
|
|
|
|
359,992
|
|
|
341,315
|
|
||||||
General corporate
|
|
|
|
|
176,072
|
|
|
173,726
|
|
||||||
|
|
|
|
|
$
|
1,324,963
|
|
|
$
|
1,239,334
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
(In thousands)
|
July 4, 2015
|
|
June 28, 2014
|
|
Percent
Change
|
|
July 4, 2015
|
|
June 28, 2014
|
|
Percent
Change
|
||||||||||
Net sales
|
$
|
568,226
|
|
|
$
|
509,143
|
|
|
11.6
|
%
|
|
$
|
1,091,703
|
|
|
$
|
961,344
|
|
|
13.6
|
%
|
Cost of sales
|
362,102
|
|
|
328,010
|
|
|
10.4
|
%
|
|
701,079
|
|
|
625,039
|
|
|
12.2
|
%
|
||||
Gross profit
|
206,124
|
|
|
181,133
|
|
|
13.8
|
%
|
|
390,624
|
|
|
336,305
|
|
|
16.2
|
%
|
||||
Selling and administrative expenses
|
167,278
|
|
|
155,288
|
|
|
7.7
|
%
|
|
335,982
|
|
|
300,498
|
|
|
11.8
|
%
|
||||
(Gain) loss on sale of assets
|
—
|
|
|
(1,346
|
)
|
|
NM
|
|
|
—
|
|
|
(9,746
|
)
|
|
NM
|
|
||||
Restructuring and impairment charges
|
(560
|
)
|
|
10,282
|
|
|
NM
|
|
|
(183
|
)
|
|
10,254
|
|
|
NM
|
|
||||
Operating income
|
39,406
|
|
|
16,909
|
|
|
133.0
|
%
|
|
54,825
|
|
|
35,299
|
|
|
55.3
|
%
|
||||
Interest expense, net
|
1,849
|
|
|
2,041
|
|
|
(9.4
|
)%
|
|
3,748
|
|
|
4,173
|
|
|
(10.2
|
)%
|
||||
Income before income taxes
|
37,557
|
|
|
14,868
|
|
|
152.6
|
%
|
|
51,077
|
|
|
31,126
|
|
|
64.1
|
%
|
||||
Income taxes
|
13,680
|
|
|
5,203
|
|
|
162.9
|
%
|
|
18,748
|
|
|
10,445
|
|
|
79.5
|
%
|
||||
Net income
|
$
|
23,877
|
|
|
$
|
9,665
|
|
|
147.0
|
%
|
|
$
|
32,329
|
|
|
$
|
20,681
|
|
|
56.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
a consolidated interest coverage ratio of not less than 4.0 to 1.0, based upon the ratio of (a) consolidated EBITDA (as defined in the Credit Agreement) for the last four fiscal quarters to (b) the sum of consolidated interest charges; and
|
•
|
a consolidated leverage ratio of not greater than 3.5 to 1.0, based upon the ratio of (a) the quarter-end consolidated funded indebtedness (as defined in the Credit Agreement) to (b) consolidated EBITDA for the last four fiscal quarters.
|
Period
|
|
(a) Total Number of Shares (or Units) Purchased (1)
|
|
(b) Average
Price Paid
per Share or
Unit
|
|
(c) Total Number of
Shares (or Units)
Purchased as Part of Publicly Announced
Plans or Programs
|
|
(d) Maximum
Number (or
Approximate
Dollar Value) of
Shares (or Units)
that May Yet be
Purchased Under
the Plans or
Programs
|
||||||
04/05/15 – 05/02/15
|
|
6,100
|
|
|
$
|
49.61
|
|
|
6,100
|
|
|
$
|
213,782,067
|
|
05/03/15 – 05/30/15
|
|
115,900
|
|
|
$
|
48.86
|
|
|
115,900
|
|
|
$
|
208,119,729
|
|
05/31/15 – 07/04/15
|
|
79,300
|
|
|
$
|
49.73
|
|
|
79,300
|
|
|
$
|
204,175,864
|
|
Total
|
|
201,300
|
|
|
|
|
201,300
|
|
|
|
|
•
|
Plan announced November 9, 2007, providing share repurchase authorization of $200,000,000 with no specific expiration date, with increase announced November 7, 2014, providing additional share repurchase authorization of $200,000,000 with no specific expiration date.
|
•
|
No repurchase plans expired or were terminated during the
second
quarter of fiscal
2015
, nor do any plans exist under which the Corporation does not intend to make further purchases.
|
|
HNI Corporation
|
|
|
|
|
|
|
Date: August 4, 2015
|
By:
|
/s/ Kurt A. Tjaden
|
|
|
|
Kurt A. Tjaden
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
EXHIBIT INDEX
|
|
(10.1)
|
HNI Corporation Executive Deferred Compensation Plan, as amended
|
(10.2)
|
HNI Corporation Directors Deferred Compensation Plan, as amended
|
(10.3)
|
HNI Corporation 2007 Stock-Based Compensation Plan, as amended (incorporated by reference to Appendix A to the Corporation's Definitive Proxy Statement filed with the SEC March 23, 2015)
|
(10.4)
|
HNI Annual Incentive Plan, as amended (incorporated by reference to Appendix B to the Corporation’s Definitive Proxy Statement filed with the SEC March 23, 2015)
|
(10.5)
|
HNI Corporation Long-Term Performance Plan, as amended (incorporated by reference to Appendix C to the Corporation’s Definitive Proxy Statement filed with the SEC March 23, 2015)
|
(10.6)
|
Equity Plan for Non-Employee Directors of HNI Corporation, as amended (incorporated by reference to Appendix D to the Corporation’s Definitive Proxy Statement filed with the SEC March 23, 2015)
|
(10.7)
|
Second Amended and Restated Credit Agreement, including all schedules and exhibits, dated as of June 9, 2015 by and among HNI Corporation, as borrower, certain domestic subsidiaries of HNI Corporation, as guarantors, certain lenders and Wells Fargo Bank, National Association, as administrative agent (incorporated by reference to Exhibit 10.1 to the Corporation’s Current Report on Form 8-K filed with the SEC June 12, 2015)
|
(31.1)
|
Certification of the CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
(31.2)
|
Certification of the CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
(32.1)
|
Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
The following materials from HNI Corporation's Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2015 are formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Comprehensive Income; (iii) Condensed Consolidated Statements of Cash Flows; and (iv) Notes to Condensed Consolidated Financial Statements
|
|
|
I.
|
AMENDMENT AND RESTATEMENT
……………………………..
1
|
1.1
|
Amendment and Restatement……………………………………
1
|
1.2
|
Purpose..........................................................................................
1
|
1.3
|
Application of the Plan..…………………………………………
1
|
II.
|
DEFINITIONS
………………………………………………………….
1
|
2.1
|
Definitions…………………………………………………….....
1
|
2.2
|
Gender and Number……………………………………………..
6
|
III.
|
ELIGIBILITY AND PARTICIPATION
……………………………..
6
|
3.1
|
Eligibility……….………………………………………………..
6
|
3.2
|
Participation…..…………………………………………………
6
|
3.3
|
Missing Persons…………………………………………………
6
|
IV.
|
ESTABLISHMENT AND ENTRIES TO ACCOUNTS
……………..
6
|
4.1
|
Accounts…………………………………………………………
6
|
4.2
|
Deferral Election Agreement……………………………………
7
|
4.3
|
Adjustments to Accounts………………………………………..
9
|
4.4
|
Commencement and Form of Distribution of Sub-Accounts……
9
|
4.5
|
Exceptions to Payment Terms…………………………………...
14
|
4.6
|
Death Benefit……………………………………………………
16
|
4.7
|
Funding………………………………………………………….
16
|
V.
|
ADMINISTRATION
……………………………………………………
17
|
5.1
|
Administration…………………………………………………..
17
|
5.2
|
Actions of the Committee……………………………………….
17
|
5.3
|
Delegation……………………………………………………….
17
|
5.4
|
Expenses…………………………………………………………
17
|
5.5
|
Reports and Records……………………………………………..
18
|
5.6
|
Valuation of Accounts and Account Statements………………...
18
|
5.7
|
Indemnification and Exculpation………………………………..
18
|
VI.
|
BENEFICIARY DESIGNATION
……………………………………..
18
|
6.1
|
Designation of Beneficiary………………………………………
18
|
6.2
|
Death of Beneficiary…………………………………………….
18
|
6.3
|
Ineffective Designation………………………………………….
18
|
VII.
|
WITHHOLDING
……………………………………………………….
18
|
VIII.
|
CHANGE IN CONTROL, AMENDMENT, AND TERMINATION
.
19
|
8.1
|
Change in Control………..………………………………………
19
|
8.2
|
Plan Amendment and Termination………………………………
19
|
IX.
|
CLAIMS PROCEDURE
……….……………………………………….
19
|
X.
|
MISCELLANEOUS
…………………………………………………….
20
|
10.1
|
Rights as a Stockholder…………….…………………….............
20
|
10.2
|
Governing Law………….………………………………................
20
|
10.3
|
No Limit on Compensation Plans or Arrangements….…................
20
|
10.4
|
No Rights to Employment.………………………………................
20
|
10.5
|
Severability……………………………..………………...................21
|
10.6
|
Securities Matters……..………………………………….................
21
|
10.7
|
No Fractional Shares………….…………………………............ 21
|
10.8
|
Headings…………………………………………….……........... 21
|
10.9
|
Nontransferability………………………………….…….............
21
|
10.10
|
Unfunded Plan…………………………………………....
21
|
10.11
|
No Other Agreements………………………………….…
21
|
10.12
|
Incapacity…………………………………………….…..
21
|
10.13
|
Release………………………………………………..…..
22
|
10.14
|
Notices………………………………………………..…..
22
|
10.15
|
Successors………………………………………..…….
22
|
(i)
|
of a number of shares of Stock equal to a specified dollar amount;
|
I.
|
AMENDMENT AND RESTATEMENT………………………………
1
|
1.1
|
Amendment and Restatement……………………………………
1
|
1.2
|
Purpose..........................................................................................
1
|
1.3
|
Application of the Plan..…………………………………………
1
|
II.
|
DEFINITIONS………………………………………………………….
1
|
2.1
|
Definitions……………………………………………………....
1
|
2.2
|
Gender and Number……………………………………………..
5
|
III.
|
ELIGIBILITY AND PARTICIPATION………………………………
5
|
3.1
|
Eligibility………………………………………………………..
5
|
3.2
|
Missing Persons…………………………………………………
5
|
IV.
|
ESTABLISHMENT AND ENTRIES TO ACCOUNTS
……………..
5
|
4.1
|
Accounts…………………………………………………………
5
|
4.2
|
Deferral Election Agreement……………………………………
6
|
4.3
|
Adjustments to Accounts………………………………………..
7
|
4.4
|
Commencement and Form of Distribution of Sub-Accounts……
7
|
4.5
|
Exceptions to Payment Terms…………………………………...
10
|
4.6
|
Death Benefit……………………………………………………
12
|
4.7
|
Funding………………………………………………………….
13
|
V.
|
ADMINISTRATION
……………………………………………………
13
|
5.1
|
Administration…………………………………………………..
13
|
5.2
|
Actions of the Committee……………………………………….
13
|
5.3
|
Delegation……………………………………………………….
13
|
5.4
|
Expenses…………………………………………………………
14
|
5.5
|
Reports and Records……………………………………………..
14
|
5.6
|
Valuation of Accounts and Account Statements………………...
14
|
5.7
|
Indemnification and Exculpation………………………………..
14
|
VI.
|
BENEFICIARY DESIGNATION
……………………………………..
14
|
6.1
|
Designation of Beneficiary………………………………………
14
|
6.2
|
Death of Beneficiary…………………………………………….
14
|
6.3
|
Ineffective Designation………………………………………….
14
|
VII.
|
AMENDMENT AND TERMINATION
……………………………….
15
|
VIII.
|
CLAIMS PROCEDURE………………………………………….
15
|
IX.
|
MISCELLANEOUS
…………………………………………………….
16
|
9.1
|
Rights as a Stockholder………………………………………….
16
|
9.2
|
Governing Law…………………………………………………..
16
|
9.3
|
No Limit on Compensation Plans or Arrangements…………….
16
|
9.4
|
No Right to Remain a Director………………………………….
16
|
9.5
|
Severability……………………………………………………...
16
|
9.6
|
Securities Matters……………………………………………….
16
|
9.7
|
No Fractional Shares…………………………………………….
16
|
9.8
|
Headings…………………………………………………………
16
|
9.9
|
Nontransferability……………………………………………….
17
|
9.10
|
Unfunded Plan…………………………………………………...
17
|
9.11
|
No Other Agreements……………………………………………
17
|
9.12
|
Incapacity………………………………………………………..
17
|
9.13
|
Release…………………………………………………………..
17
|
9.14
|
Notices…………………………………………………………..
17
|
9.15
|
Successors……………………………………………………….
17
|
Date: August 4, 2015
|
By:
|
/s/ Stan A. Askren
|
|
|
Name: Stan A. Askren
|
|
|
Title: Chairman, President and Chief Executive Officer
|
Date: August 4, 2015
|
By:
|
/s/ Kurt A. Tjaden
|
|
|
Name: Kurt A. Tjaden
|
|
|
Title: Senior Vice President and Chief Financial Officer
|
|
By:
|
/s/ Stan A. Askren
|
|
|
|
Name: Stan A. Askren
|
|
|
|
Title: Chairman, President and Chief Executive Officer
|
|
|
|
Date: August 4, 2015
|
|
|
By:
|
/s/ Kurt A. Tjaden
|
|
|
|
Name: Kurt A. Tjaden
|
|
|
|
Title: Senior Vice President and Chief Financial Officer
|
|
|
|
Date: August 4, 2015
|
|