Summary of Quarterly Results of Operations (Unaudited)

The following table presents certain unaudited quarterly financial information for each of the past 12 quarters. In the opinion of the Corporation’s management, this information has been prepared on the same basis as the consolidated financial statements appearing elsewhere in this report and includes all adjustments (consisting only of normal recurring accruals) necessary to state fairly the financial results set forth herein. Results of operations for any previous quarter are not necessarily indicative of results for any future period.



Year-End 2013: (In thousands, except per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net sales	$	442,297		$	510,698		$	565,706		$	541,263
Cost of products sold	294,515			336,040			365,835			348,282
Gross profit	147,782			174,658			199,871			192,981
Selling and administrative expenses	144,556			154,538			154,641			155,237
Restructuring related charges (income)	156			(35		)	115			97
Operating income (loss)	3,070			20,155			45,115			37,647
Interest income (expense) – net	(2,516		)	(2,567		)	(2,668		)	(1,529		)
Income (loss) before income taxes	554			17,588			42,447			36,118
Income taxes	(625		)	6,189			14,398			13,376
Net income (loss)	1,179			11,399			28,049			22,742
Less: net income attributable to the noncontrolling interest	(229		)	(22		)	(45		)	(18		)
Net income (loss) attributable to HNI Corporation	$	1,408		$	11,421		$	28,094		$	22,760
Net income (loss) attributable to HNI Corporation per common share – basic	$	0.03		$	0.25		$	0.62		$	0.50
Weighted-average common shares outstanding – basic	45,154,764			45,412,668			45,317,912			45,117,315
Net income (loss) attributable to HNI Corporation per common share – diluted	$	0.03		$	0.25		$	0.61		$	0.50
Weighted-average common shares outstanding – diluted	45,719,878			46,109,563			46,089,580			45,964,128
As a Percentage of Net Sales
Net sales	100.0		%	100.0		%	100.0		%	100.0		%
Gross profit	33.4			34.2			35.3			35.7
Selling and administrative expenses	32.7			30.3			27.3			28.7
Restructuring related charges	—			—			—			—
Operating income (loss)	0.7			3.9			8.0			7.0
Income taxes	(0.1		)	1.2			2.5			2.5
Net income (loss) attributable to HNI Corporation	0.3			2.2			5.0			4.2



Year-End 2012: (In thousands, except per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net sales	$	445,212		$	480,400		$	550,855		$	527,536
Cost of products sold	298,385			315,287			359,519			341,585
Gross profit	146,827			165,113			191,336			185,951
Selling and administrative expenses	143,734			151,455			149,421			155,046
Restructuring related charges	897			292			172			583
Operating income (loss)	2,196			13,366			41,743			30,322
Interest income (expense) – net	(2,435		)	(2,633		)	(2,503		)	(2,452		)
Income (loss) before income taxes	(239		)	10,733			39,240			27,870
Income taxes	(86		)	3,835			15,036			10,493
Net income (loss)	(153		)	6,898			24,204			17,377
Less: net income attributable to the noncontrolling interest	(12		)	(127		)	(286		)	(216		)
Net income (loss) attributable to HNI Corporation	$	(141	)	$	7,025		$	24,490		$	17,593
Net income (loss) per common share – basic	$	—		$	0.15		$	0.54		$	0.39
Weighted-average common shares outstanding – basic	45,152			45,420			45,224			45,050
Net income (loss) per common share – diluted	$	—		$	0.15		$	0.53		$	0.39
Weighted-average common shares outstanding – diluted	45,152			45,945			45,820			45,692
As a Percentage of Net Sales
Net sales	100.0		%	100.0		%	100.0		%	100.0		%
Gross profit	33.0			34.4			34.7			35.2
Selling and administrative expenses	32.3			31.5			27.1			29.4
Restructuring related charges	0.2			0.1			—			0.1
Operating income (loss)	0.5			2.8			7.6			5.7
Income taxes	—			0.8			2.7			2.0
Net income (loss) attributable to HNI Corporation	—			1.5			4.4			3.3



Year-End 2011: (In thousands, except per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Net sales	$	396,151		$	432,810		$	504,220		$	500,269
Cost of products sold	261,427			285,880			324,825			322,255
Gross profit	134,724			146,930			179,395			178,014
Selling and administrative expenses	132,413			136,197			138,671			147,034
Restructuring related charges	1,390			463			277			1,131
Operating income (loss)	921			10,270			40,447			29,849
Interest income (expense) – net	(3,456		)	(2,923		)	(2,345		)	(2,604		)
Income (loss) before income taxes	(2,535		)	7,347			38,102			27,245
Income taxes	(738		)	2,744			13,186			9,219
Net income (loss)	(1,797		)	4,603			24,916			18,026
Less: Net income attributable to the noncontrolling interest	(42		)	(54		)	(31		)	(111		)
Net income (loss) attributable to HNI Corporation	$	(1,755	)	$	4,657		$	24,947		$	18,137
Net income (loss) attributable to HNI Corporation per common share – basic	$	(0.04	)	$	0.10		$	0.56		$	0.40
Weighted-average common shares outstanding – basic	44,853			44,745			44,787			44,828
Net income (loss) attributable to HNI Corporation per common share – diluted	$	(0.04	)	$	0.10		$	0.55		$	0.40
Weighted-average common shares outstanding – diluted	44,853			45,667			45,637			45,759
As a Percentage of Net Sales
Net sales	100.0		%	100.0		%	100.0		%	100.0		%
Gross profit	34.0			33.9			35.6			35.6
Selling and administrative expenses	33.4			31.5			27.5			29.4
Restructuring related charges	0.4			0.1			0.1			0.2
Operating income (loss)	0.2			2.4			8.0			6.0
Income taxes	(0.2		)	0.6			2.6			1.8
Net income (loss) attributable to HNI Corporation	(0.4		)	1.1			4.9			3.6