10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549
FORM 10-Q
x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 1, 2017
OR
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________ to ____________________
Commission File Number: 1-14225
HNI Corporation
(Exact name of registrant as specified in its charter)
Iowa (State or other jurisdiction of incorporation or organization)	42-0617510 (I.R.S. Employer Identification Number)
600 East Second Street, P. O. Box 1109 Muscatine, Iowa 52761-0071 (Address of principal executive offices)	52761-0071 (Zip Code)
Registrant's telephone number, including area code:  (563) 272-7400
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES       x                     NO     o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES       x                     NO     o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer      x                                                                                                 Accelerated filer       o Non-accelerated filer        o   (Do not check if a smaller reporting company)                    Smaller reporting company     o Emerging growth company       o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).             YES        o                   NO      x
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date.
Common Shares, $1 Par Value	Outstanding as of July 1, 2017 44,055,733

HNI Corporation and Subsidiaries
Index
PART I.    FINANCIAL INFORMATION
	Page
Item 1.    Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets - July 1, 2017 and December 31, 2016	3
Condensed Consolidated Statements of Comprehensive Income - Three Months and Six Months Ended July 1, 2017 and July 2, 2016	5
Consolidated Statements of Equity - July 1, 2017 and July 2, 2016	6
Condensed Consolidated Statements of Cash Flows - Six Months Ended July 1, 2017 and July 2, 2016	7
Notes to Condensed Consolidated Financial Statements	8
Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.    Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.    Controls and Procedures	26
PART II.    OTHER INFORMATION
Item 1.    Legal Proceedings	27
Item 1A. Risk Factors	27
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.    Defaults Upon Senior Securities - None	-
Item 4.    Mine Safety Disclosures - Not Applicable	-
Item 5.    Other Information - None	-
Item 6.    Exhibits	27
SIGNATURES	28
EXHIBIT INDEX	29

2

PART I.    FINANCIAL INFORMATION

Item 1. Financial Statements

HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In thousands)
(Unaudited)
	July 1, 2017		December 31, 2016
Assets
Current Assets:
Cash and cash equivalents	$	27,148	$	36,312
Short-term investments	2,253		2,252
Receivables	227,212		229,436
Inventories	167,205		118,438
Prepaid expenses and other current assets	43,424		46,603
Total Current Assets	467,242		433,041
Property, Plant, and Equipment:
Land and land improvements	29,094		27,403
Buildings	305,821		283,930
Machinery and equipment	543,524		528,099
Construction in progress	60,671		51,343
	939,110		890,775
Less accumulated depreciation	551,169		534,330
Net Property, Plant, and Equipment	387,941		356,445
Goodwill	290,660		290,699
Deferred Income Taxes	1,095		719
Other Assets	254,221		249,330
Total Assets	$	1,401,159	$	1,330,234

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

3

HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except par value)
(Unaudited)
	July 1, 2017			December 31, 2016
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses	$	387,853		$	425,046
Current maturities of long-term debt	93,323			34,017
Current maturities of other long-term obligations	3,187			4,410
Total Current Liabilities	484,363			463,473
Long-Term Debt	240,000			180,000
Other Long-Term Liabilities	71,177			75,044
Deferred Income Taxes	111,270			110,708
Equity:
HNI Corporation shareholders' equity:
Capital Stock:
Preferred stock - $1 par value, authorized 2,000 shares, no shares outstanding	—			—
Common stock - $1 par value, authorized 200,000 shares, outstanding:
July 1, 2017 – 44,056 shares;
December 31, 2016 – 44,079 shares	44,056			44,079
Additional paid-in capital	5,438			—
Retained earnings	449,130			461,524
Accumulated other comprehensive income (loss)	(4,633		)	(5,000		)
Total HNI Corporation shareholders' equity	493,991			500,603
Non-controlling interest	358			406
Total Equity	494,349			501,009
Total Liabilities and Equity	$	1,401,159		$	1,330,234

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

4

HNI Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In thousands, except share and per share data)
(Unaudited)
	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Net sales	$	514,485		$	536,538		$	992,152		$	1,037,575
Cost of sales	329,733			327,618			633,677			642,944
Gross profit	184,752			208,920			358,475			394,631
Selling and administrative expenses	162,684			162,319			326,350			327,425
Restructuring charges	419			572			2,542			1,658
Operating income	21,649			46,029			29,583			65,548
Interest income	325			63			396			141
Interest expense	1,347			1,131			2,393			3,005
Income before income taxes	20,627			44,961			27,586			62,684
Income taxes	6,771			15,934			8,949			21,815
Net income	13,856			29,027			18,637			40,869
Less: Net income (loss) attributable to non-controlling interest	8			(2		)	(48		)	(3		)
Net income attributable to HNI Corporation	$	13,848		$	29,029		$	18,685		$	40,872
Average number of common shares outstanding – basic	44,178,287			44,431,198			44,114,164			44,344,778
Net income attributable to HNI Corporation per common share – basic	$	0.31		$	0.65		$	0.42		$	0.92
Average number of common shares outstanding – diluted	45,305,547			45,632,284			45,375,451			45,308,306
Net income attributable to HNI Corporation per common share – diluted	$	0.31		$	0.64		$	0.41		$	0.90
Foreign currency translation adjustments	$	115		$	(755	)	$	459		$	(598	)
Change in unrealized gains (losses) on marketable securities (net of tax)	19			23			37			73
Change in derivative financial instruments (net of tax)	(394		)	(1,030		)	(129		)	(1,553		)
Other comprehensive income (loss) (net of tax)	(260		)	(1,762		)	367			(2,078		)
Comprehensive income	13,596			27,265			19,004			38,791
Less: Comprehensive income (loss) attributable to non-controlling interest	8			(2		)	(48		)	(3		)
Comprehensive income attributable to HNI Corporation	$	13,588		$	27,267		$	19,052		$	38,794

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

5

HNI Corporation and Subsidiaries Consolidated Statements of Equity (In thousands, except per share data) (Unaudited)
	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss)/Income			Non- controlling Interest			Total Shareholders’ Equity
Balance, December 31, 2016	$	44,079		$	—		$	461,524		$	(5,000	)	$	406		$	501,009
Comprehensive income:
Net income (loss)	—			—			18,685			—			(48		)	18,637
Other comprehensive income (net of tax)	—			—			—			367			—			367
Cash dividends; $0.56 per share	—			—			(24,727		)	—			—			(24,727		)
Common shares – treasury:
Shares purchased	(522		)	(16,954		)	(6,352		)	—			—			(23,828		)
Shares issued under Members’ Stock Purchase Plan and stock awards (net of tax)	499			22,392			—			—			—			22,891
Balance, July 1, 2017	$	44,056		$	5,438		$	449,130		$	(4,633	)	$	358		$	494,349

	Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive (Loss)/Income			Non- controlling Interest			Total Shareholders’ Equity
Balance, January 2, 2016	$	44,158		$	4,407		$	433,575		$	(5,186	)	$	345		$	477,299
Comprehensive income:
Net income (loss)	—			—			40,872			—			(3		)	40,869
Other comprehensive (loss) (net of tax)	—			—			—			(2,078		)	—			(2,078		)
Cash dividends; $0.54 per share	—			—			(23,984		)	—			—			(23,984		)
Common shares – treasury:
Shares purchased	(208		)	(8,537		)	—			—			—			(8,745		)
Shares issued under Members’ Stock Purchase Plan and stock awards (net of tax)	505			22,020			—			—			—			22,525
Balance, July 2, 2016	$	44,455		$	17,890		$	450,463		$	(7,264	)	$	342		$	505,886

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

6

HNI Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands)
(Unaudited)
	Six Months Ended
	July 1, 2017			July 2, 2016
Net Cash Flows From (To) Operating Activities:
Net income	$	18,637		$	40,869
Noncash items included in net income:
Depreciation and amortization	36,464			31,631
Other post-retirement and post-employment benefits	796			821
Stock-based compensation	5,803			6,441
Excess tax benefits from stock compensation	—			(485		)
Deferred income taxes	126			6,442
(Gain) loss on sale and retirement of long-lived assets and intangibles, net	671			130
Other – net	(2,327		)	2,532
Net increase (decrease) in operating assets and liabilities	(85,064		)	(50,560		)
Increase (decrease) in other liabilities	(2,408		)	(5,997		)
Net cash flows from (to) operating activities	(27,302		)	31,824
Net Cash Flows From (To) Investing Activities:
Capital expenditures	(51,730		)	(42,422		)
Proceeds from sale of property, plant, and equipment	658			499
Capitalized software	(12,358		)	(13,434		)
Acquisition spending, net of cash acquired	—			(34,064		)
Purchase of investments	(2,040		)	(4,875		)
Sales or maturities of investments	1,937			4,758
Other – net	1,510			501
Net cash flows from (to) investing activities	(62,023		)	(89,037		)
Net Cash Flows From (To) Financing Activities:
Proceeds from sales of HNI Corporation common stock	8,313			5,401
Withholding related to net share settlements of equity based awards	(209		)	—
Purchase of HNI Corporation common stock	(22,617		)	(8,745		)
Proceeds from long-term debt	238,890			506,359
Payments of note and long-term debt and other financing	(119,489		)	(426,410		)
Excess tax benefits from stock compensation	—			485
Dividends paid	(24,727		)	(23,984		)
Net cash flows from (to) financing activities	80,161			53,106
Net increase (decrease) in cash and cash equivalents	(9,164		)	(4,107		)
Cash and cash equivalents at beginning of period	36,312			28,548
Cash and cash equivalents at end of period	$	27,148		$	24,441

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

7

HNI Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

July 1, 2017

Note 1.  Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.  The December 31, 2016 consolidated balance sheet included in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the six-month period ended July 1, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2017.  For further information, refer to the consolidated financial statements and accompanying notes included in HNI Corporation's (the "Corporation") Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

Note 2. Stock-Based Compensation

The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employees' requisite service periods. Stock-based compensation expense is the cost of stock options and time-based restricted stock units issued under the HNI Corporation 2007 Stock-Based Compensation Plan and shares issued under the HNI Corporation 2002 Members' Stock Purchase Plan and the HNI Corporation Members' Stock Purchase Plan adopted in 2017. The following table summarizes stock-based compensation expense (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Stock-based compensation expense	$	1,132	$	1,101	$	5,803	$	6,441

The options and units granted by the Corporation had fair values of the following (in thousands):

	Six Months Ended
	July 1, 2017		July 2, 2016
Stock options	$	7,206	$	7,680
Time-based restricted stock units	$	—	$	712

The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and restricted stock units as of July 1, 2017:

	Unrecognized Compensation Expense (in thousands)		Weighted-Average Remaining Service Period (years)
Non-vested stock options	$	4,721	1.3
Non-vested restricted stock units	$	621	0.9

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Note 3.  Inventories

The Corporation values its inventory at the lower of cost or net realizable value with approximately 85 percent valued by the last-in, first-out ("LIFO") costing method.

(In thousands)	July 1, 2017			December 31, 2016
Finished products	$	107,874		$	71,223
Materials and work in process	83,491			71,375
LIFO allowance	(24,160		)	(24,160		)
	$	167,205		$	118,438

Note 4.  Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

The following tables summarize the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended (in thousands):

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2016	$	(1,188	)	$	(105	)	$	(5,167	)	$	1,460		$	(5,000	)
Other comprehensive income (loss) before reclassifications	459			57			—			(505		)	11
Tax (expense) or benefit	—			(20		)	—			186			166
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	—			—			—			190			190
Balance as of July 1, 2017	$	(729	)	$	(68	)	$	(5,167	)	$	1,331		$	(4,633	)

Amounts in parentheses indicate reductions in equity.

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of January 2, 2016	$	322		$	(2	)	$	(5,506	)	$	—		$	(5,186	)
Other comprehensive income (loss) before reclassifications	(598		)	112			—			(2,872		)	(3,358		)
Tax (expense) or benefit	—			(39		)	—			1,057			1,018
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	—			—			—			262			262
Balance as of July 2, 2016	$	(276	)	$	71		$	(5,506	)	$	(1,553	)	$	(7,264	)

Amounts in parentheses indicate reductions in equity.

In March 2016, the Corporation entered into an interest rate swap transaction to hedge $150 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of the interest rate swap, the Corporation pays a fixed rate of 1.29 percent and receives one month LIBOR on a $150 million notional value expiring January 2021. As of July 1, 2017, the fair value of the Corporation's interest rate swap was an asset of $2.1 million, which is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets. The interest rate swap is reported net of tax as $1.3 million in "Accumulated other comprehensive income (loss)" in the Condensed Consolidated Balance Sheets.

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The following table details the reclassifications from accumulated other comprehensive income (loss) (in thousands):

		Three Months Ended						Six Months Ended
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Statement Where Net Income is Presented	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Derivative financial instruments
Interest rate swap	Interest (expense) or income	$	(108	)	$	(322	)	$	(301	)	$	(415	)
	Tax (expense) or benefit	40			119			111			153
	Net of tax	$	(68	)	$	(203	)	$	(190	)	$	(262	)

Amounts in parentheses indicate reductions to profit.

During the six months ended July 1, 2017, the Corporation repurchased 521,562 shares of its common stock at a cost of approximately $23.8 million. As of July 1, 2017, there was a payable of $1.2 million reflected in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets relating to shares repurchased but not yet settled. During the six months ended July 2, 2016, the Corporation repurchased 208,000 shares of its common stock at a cost of approximately $8.7 million. As of July 1, 2017, $113.1 million of the Corporation's Board of Directors' ("Board") current repurchase authorization remained unspent.

During the six months ended July 1, 2017 and July 2, 2016, the Corporation paid dividends to shareholders of $0.56 and $0.54 per share, respectively.

Note 5.  Earnings Per Share

The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS") (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Numerator:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income	$	13,848	$	29,029	$	18,685	$	40,872
Denominators:
Denominator for basic EPS weighted-average common shares outstanding	44,178		44,431		44,114		44,345
Potentially dilutive shares from stock-based compensation plans	1,128		1,201		1,261		963
Denominator for diluted EPS	45,306		45,632		45,375		45,308
Earnings per share – basic	$	0.31	$	0.65	$	0.42	$	0.92
Earnings per share – diluted	$	0.31	$	0.64	$	0.41	$	0.90

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.

	Three Months Ended		Six Months Ended
	July 1, 2017	July 2, 2016	July 1, 2017	July 2, 2016
Common stock equivalents	875,580	444,723	745,738	730,884

The Corporation implemented ASU No. 2016-09 in the first quarter of fiscal 2017, which had an immaterial impact on the number of potentially dilutive shares from stock-based compensation plans for the three months and six months ended July 1, 2017. See "Note 13. Recently Adopted Accounting Standards" for more information regarding the implementation of ASU No. 2016-09.

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Note 6.  Restructuring

Restructuring costs recorded in the Condensed Consolidated Statements of Comprehensive Income are as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Cost of sales - accelerated depreciation	$	2,960	$	1,423	$	7,158	$	1,423
Restructuring charges	419		572		2,542		1,658
	$	3,379	$	1,995	$	9,700	$	3,081

Restructuring costs in both the quarter and year-to-date periods for 2017 were incurred as part of the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. The costs in both the quarter and year-to-date periods for 2016 were primarily incurred as part of the previously announced closure of the Paris, Kentucky hearth manufacturing facility.

The accrued restructuring expenses are expected to be paid in the next twelve months and are included in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets. The following is a summary of changes in restructuring accruals during the six months ended (in thousands):

	Severance			Facility Exit Costs & Other			Total
Balance as of December 31, 2016	$	2,704		$	—		$	2,704
Restructuring charges, excluding accelerated depreciation	895			1,647			2,542
Cash payments	(1,699		)	(1,048		)	(2,747		)
Balance as of July 1, 2017	$	1,900		$	599		$	2,499

Note 7. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):

	Office Furniture			Hearth Products			Total
Balance as of December 31, 2016
Goodwill	$	165,643		$	183,199		$	348,842
Accumulated impairment losses	(58,000		)	(143		)	(58,143		)
Net goodwill balance as of December 31, 2016	107,643			183,056			290,699
Foreign currency translation adjustments	(39		)	—			(39		)
Balance as of July 1, 2017
Goodwill	165,604			183,199			348,803
Accumulated impairment losses	(58,000		)	(143		)	(58,143		)
Net goodwill balance as of July 1, 2017	$	107,604		$	183,056		$	290,660

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The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Other Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	July 1, 2017						December 31, 2016
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	18,643	$	18,625	$	18	$	18,645	$	18,623	$	22
Software	161,438		28,364		133,074		149,587		25,792		123,795
Trademarks and trade names	7,564		1,731		5,833		7,564		1,401		6,163
Customer lists and other	115,578		66,584		48,994		117,789		65,103		52,686
Net definite lived intangible assets	$	303,223	$	115,304	$	187,919	$	293,585	$	110,919	$	182,666

Aggregate amortization expense was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Amortization expense	$	2,975	$	2,911	$	6,088	$	5,340

Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows (in millions):

	2017		2018		2019		2020		2021
Amortization expense	$	17.4	$	23.0	$	21.9	$	21.0	$	20.3

As events, such as acquisitions, dispositions, or impairments, occur in the future, these amounts may change.

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 "Other Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	July 1, 2017		December 31, 2016
Trademarks and trade names	$	37,511	$	38,054

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method.  This method employs market participant based assumptions.

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Note 8.  Product Warranties

The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs.

A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience.  Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve.  Activity associated with warranty obligations was as follows (in thousands):

	Six Months Ended
	July 1, 2017			July 2, 2016
Balance at beginning of period	$	15,250		$	16,227
Accruals for warranties issued during period	11,276			10,159
Adjustments related to pre-existing warranties	32			276
Settlements made during the period	(11,332		)	(10,586		)
Balance at end of period	$	15,226		$	16,076

The current and long-term portions of the reserve for estimated settlements are included under "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Condensed Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid (in thousands):

	July 1, 2017		December 31, 2016
Current - in the next twelve months	$	6,823	$	6,975
Long-term - beyond one year	8,403		8,275
	$	15,226	$	15,250

Note 9.  Post-Retirement Health Care

The following table sets forth the components of net periodic benefit costs included in the Condensed Consolidated Statements of Comprehensive Income (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Service cost	$	186	$	184	$	371	$	369
Interest cost	206		211		412		422
Amortization of (gain)/loss	6		15		13		30
Net periodic benefit cost	$	398	$	410	$	796	$	821

Note 10.  Income Taxes

The Corporation's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Corporation's income tax provision for the three months ended July 1, 2017 was $6.8 million on pre-tax income of $20.6 million, or an effective tax rate of 32.8 percent. For the three months ended July 2, 2016, the Corporation's income tax provision was $15.9 million on pre-tax income of $45.0 million, or an effective tax rate of 35.4 percent. The effective tax rate was lower in the three months ended July 1, 2017 principally due to the enactment of ASU No. 2016-09 related to stock compensation in the first quarter of 2017. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when awards vest or are settled. See "Note 13. Recently Adopted Accounting Standards" in the Notes to Condensed Consolidated Financial Statements. The Corporation's tax provision for the six months ended July 1, 2017 includes a tax benefit of $1.0 million related to the adoption of this standard. The provision for income taxes for the six months ended July 1, 2017 reflects an effective tax rate of 32.4 percent compared to 34.8 percent for the same period last year. The drivers of the change in the effective tax rate for the first six months were the same as those for the quarter.

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Note 11.  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 and derivative instruments.  The marketable securities are comprised of government securities, corporate bonds, and money market funds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1.  Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2.

Assets measured at fair value as of July 1, 2017 were as follows (in thousands):

	Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Government securities	$	6,588	$	—	$	6,588	$	—
Corporate bonds	$	5,840	$	—	$	5,840	$	—
Derivative financial instruments	$	2,106	$	—	$	2,106	$	—

Assets measured at fair value as of December 31, 2016 were as follows (in thousands):

	Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Government securities	$	6,268	$	—	$	6,268	$	—
Corporate bonds	$	6,017	$	—	$	6,017	$	—
Derivative financial instruments	$	2,309	$	—	$	2,309	$	—

In addition to the methods and assumptions discussed above, the Corporation uses the following methods and assumptions to estimate the fair value of its financial instruments.

Cash and cash equivalents - Level 1

The carrying amount approximated fair value and includes money market funds.

Long-term debt (including current portion) - Level 2

The carrying value of the Corporation's outstanding variable-rate debt obligations as of July 1, 2017 and December 31, 2016 was $332 million and $214 million, respectively, which approximated the fair value. 

The Corporation’s revolving credit facility under the current credit agreement was entered into January 6, 2016 and matures January 6, 2021. 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, which is to be amortized over the next twelve months, is reflected in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheets. The long-term portion is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets.

As of July 1, 2017, there was $332 million outstanding under the $400 million revolving credit facility of which $240 million was classified as long-term as the Corporation does not expect to repay the borrowings within a year. Because the Corporation expects, but is not required, to repay the remaining $92 million in the next twelve months, it was classified as current.

The revolving credit facility under the credit agreement is the primary source of committed funding from which the Corporation finances its planned capital expenditures and strategic initiatives, such as acquisitions, repurchases of common stock and certain working capital needs.  

The credit agreement contains a number of covenants. Non-compliance with covenants in the credit agreement could prevent the Corporation from being able to access further borrowings under the revolving credit facility, require immediate repayment of all amounts outstanding with respect to the revolving credit facility and/or increase the cost of borrowing.

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Certain 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, nonrecurring charges, and all non-cash items increasing net income.  As of July 1, 2017, 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 over the next twelve months.

Note 12.  Guarantees, Commitments, and Contingencies

The Corporation utilizes letters of credit and surety bonds in the amount of $18 million to back certain insurance policies and payment obligations.  The Corporation utilizes trade letters of credit and banker's acceptances in the amount of $5 million to guarantee certain payments to overseas suppliers. 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 has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, and other claims.  It is the Corporation's opinion that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation's financial condition, cash flows, or on the Corporation's quarterly or annual operating results when resolved in a future period.

Note 13.  Recently Adopted Accounting Standards

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Corporation implemented the new standard in the first quarter of fiscal 2017. The primary impact of implementation was the recognition of excess tax benefits in the Corporation's provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2017. Excess tax benefits will be recorded in the operating section of the Condensed Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2017, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in the Corporation's Condensed Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Implementation of the new standard resulted in the recognition of excess tax benefits in the Corporation's provision for income taxes of $0.4 million and $1.0 million as a net tax benefit for the three months and six months ended July 1, 2017, respectively. Prior to the adoption of this standard, those amounts would have been recognized as an adjustment to "Additional paid-in capital" in the Condensed Consolidated Balance Sheets. See "Note 10. Income Taxes" in the Notes to Condensed Consolidated Financial Statements for further information.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The new standard is intended to simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value rather than the previous guidance of measuring inventory at the lower of cost or market. The Corporation implemented the new standard in the first quarter of fiscal 2017. As the Corporation previously calculated net realizable value when measuring inventory at the lower of cost or market, this standard had an immaterial effect on the condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). The new standard is to simplify the test for goodwill impairment by eliminating the step 2 requirement. Instead, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard is effective for fiscal 2020, but the Corporation has early adopted the standard in 2017. The Corporation has not been required to test for goodwill impairment through the second quarter of 2017.

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Note 14.  Reportable Segment Information

Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment.

The aggregated office furniture segment manufactures and markets a broad line of metal and wood commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems, and other related products.  The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings, and accessories, principally for the home.

For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses.  These unallocated corporate expenses include the net costs of the Corporation's corporate operations, interest income, and interest expense.  Management views interest income and expense as corporate financing costs and not as a reportable segment cost.  In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, and corporate office real estate and related equipment.

No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation's primary market and capital investments are concentrated in the United States.

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Reportable segment data reconciled to the Corporation's condensed consolidated financial statements is as follows (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Net Sales:
Office furniture	$	406,444		$	428,113		$	766,425		$	815,452
Hearth products	108,041			108,425			225,727			222,123
Total	$	514,485		$	536,538		$	992,152		$	1,037,575
Income Before Income Taxes:
Office furniture	$	19,683		$	43,367		$	26,127		$	64,667
Hearth products	12,104			9,954			23,915			22,515
General corporate	(11,160		)	(8,360		)	(22,456		)	(24,498		)
Total	$	20,627		$	44,961		$	27,586		$	62,684
Depreciation & Amortization Expense:
Office furniture	$	12,498		$	11,127		$	25,383		$	21,820
Hearth products	2,706			3,322			6,194			5,978
General corporate	2,421			1,931			4,887			3,833
Total	$	17,625		$	16,380		$	36,464		$	31,631
Capital Expenditures (including capitalized software):
Office furniture	$	16,345		$	13,580		$	37,365		$	30,048
Hearth products	5,134			4,459			7,212			7,012
General corporate	9,833			10,360			19,511			18,796
Total	$	31,312		$	28,399		$	64,088		$	55,856
							As of July 1, 2017			As of December 31, 2016
Identifiable Assets:
Office furniture							$	812,771		$	749,145
Hearth products							353,768			340,494
General corporate							234,620			240,595
Total							$	1,401,159		$	1,330,234

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Note 15. Acquisitions and Divestitures

On January 29, 2016, the Corporation acquired OFM, an office furniture company, with annual sales of approximately $30 million at a purchase price of $34.1 million, net of cash acquired, in an all cash transaction. The Corporation finalized the allocation of the purchase price during fourth quarter 2016. There were $15 million of intangible assets other than goodwill associated with this acquisition with estimated useful lives ranging from three to ten years with amortization recorded on a straight-line basis based on the projected cash flow associated with the respective intangible assets. There was $14 million of goodwill associated with this acquisition. The goodwill is deductible for income tax purposes.

As part of the Corporation's ongoing business strategy, it continues to acquire and divest small office furniture dealerships. There was no change to Goodwill in the first six months of 2017 as a result of this activity. Goodwill increased approximately $2 million in fiscal 2016 as a result of this activity.

The Corporation completed the sale of Artcobell, a K-12 education furniture business, on December 31, 2016. A pre-tax non-cash charge of approximately $23 million and a $10 million long-term note receivable, which was included in "Other Assets" in the Corporation's Consolidated Balance Sheets in Form 10-K for the fiscal year ended December 31, 2016, were recorded in relation to the sale. Artcobell had been included as part of the Corporation's office furniture segment. As of July 1, 2017, $0.8 million of the note receivable is current and is included in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheets.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of the Corporation's historical results of operations and of its liquidity and capital resources should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements of the Corporation and related notes. Statements that are not historical are forward-looking and involve risks and uncertainties. See "Forward-Looking Statements" at the end of this section.

Overview

The Corporation has two reportable segments: office furniture and hearth products. The Corporation is a leading global office furniture manufacturer and the leading manufacturer and marketer of hearth products. The Corporation utilizes a split and focused, decentralized business model to deliver value to customers via various brands and selling models. The Corporation is focused on growing its existing businesses while seeking out and developing new opportunities for growth. 

Net sales for the second quarter of fiscal 2017 decreased 4.1 percent to $514.5 million when compared to the second quarter of fiscal 2016.  The change was driven by a decrease in the office furniture segment, while sales were flat in the hearth products segment. Office furniture segment sales decreased $22.5 million compared to the prior year quarter due to the net impact of acquisitions and divestitures of small office furniture companies. The hearth products segment saw an increase in the new construction business due to growth in single family housing. The retail wood/gas business declined due to the impacts of dealer distributors moving to the Corporation's more efficient just-in-time delivery model.

Gross profit percentage for the quarter decreased from prior year levels driven by input cost inflation, deeper discounting, product mix, and higher restructuring and transition costs.  

Total selling and administrative expenses increased as a percentage of sales due to strategic growth investments and prior year non-repeating adjustments, partially offset by the impact of divestitures, lower incentive based compensation, and the impact of stock price change on deferred compensation.

The Corporation recorded $3.4 million of restructuring costs and $4.3 million of transition costs in the second quarter of 2017 in connection with the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana and structural realignments in China and between office furniture facilities in Muscatine, Iowa. Specific items incurred include accelerated depreciation and production move costs. Of these charges, $7.3 million was included in cost of sales.

Results of Operations

The following table presents certain key highlights from the results of operations (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017		July 2, 2016		Percent Change		July 1, 2017		July 2, 2016		Percent Change
Net sales	$	514,485	$	536,538	(4.1	)%	$	992,152	$	1,037,575	(4.4	)%
Cost of sales	329,733		327,618		0.6	%	633,677		642,944		(1.4	)%
Gross profit	184,752		208,920		(11.6	)%	358,475		394,631		(9.2	)%
Selling and administrative expenses	162,684		162,319		0.2	%	326,350		327,425		(0.3	)%
Restructuring charges	419		572		(26.7	)%	2,542		1,658		53.3	%
Operating income	21,649		46,029		(53.0	)%	29,583		65,548		(54.9	)%
Interest expense, net	1,022		1,068		(4.3	)%	1,997		2,864		(30.3	)%
Income before income taxes	20,627		44,961		(54.1	)%	27,586		62,684		(56.0	)%
Income taxes	6,771		15,934		(57.5	)%	8,949		21,815		(59.0	)%
Net income	$	13,856	$	29,027	(52.3	)%	$	18,637	$	40,869	(54.4	)%

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Three Months Ended

Consolidated net sales for the second quarter of 2017 decreased 4.1 percent or $22.0 million compared to the same quarter last year. The change was driven by a decrease in the office furniture segment, while sales were flat in the hearth products segment. Office furniture segment sales decreased $22.5 million compared to the prior year quarter due to the net impact of acquisitions and divestitures of small office furniture companies. The hearth products segment saw an increase in the new construction business due to growth in single family housing. The retail wood/gas business declined due to the impacts of dealer distributors moving to the Corporation's more efficient just-in-time delivery model.

Gross profit percentage for the second quarter of 2017 decreased to 35.9 percent compared to 38.9 percent for the same quarter last year.  Gross margin for the quarter declined from prior year levels driven by input cost inflation, deeper discounting, product mix, and higher restructuring and transition costs.

Second quarter 2017 cost of sales included $3.0 million of restructuring costs and $4.3 million of transition costs related to the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana and structural realignments in China and between office furniture facilities in Muscatine, Iowa. Specific items incurred include accelerated depreciation and production move costs. Second quarter 2016 cost of sales included $1.4 million of restructuring costs and $3.5 million of transition costs related to the previously announced closure of the hearth manufacturing facility in Paris, Kentucky and structural realignments among office furniture facilities in Muscatine, Iowa.

Total selling and administrative expenses as a percentage of net sales increased to 31.6 percent compared to 30.3 percent for the same quarter last year driven by strategic growth investments and prior year non-repeating adjustments, partially offset by the impact of divestitures, lower incentive based compensation, and the impact of stock price change on deferred compensation. The Corporation also recorded a $2.0 million nonrecurring gain on a litigation settlement in the second quarter of 2016.

In the second quarter of 2017, the Corporation recorded $0.4 million in restructuring costs as part of selling and administrative costs due to the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. In the second quarter of 2016, the Corporation recorded $0.6 million of restructuring costs as part of selling and administrative costs in connection with the previously announced closure of the Paris, Kentucky hearth manufacturing facility.

The Corporation's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Corporation's income tax provision for the three months ended July 1, 2017 was $6.8 million on pre-tax income of $20.6 million, or an effective tax rate of 32.8 percent. For the three months ended July 2, 2016, the Corporation's income tax provision was $15.9 million on pre-tax income of $45.0 million, or an effective tax rate of 35.4 percent. Refer to "Note 10. Income Taxes" for further information.

Net income attributable to the Corporation was $13.8 million or $0.31 per diluted share in the second quarter of 2017 compared to $29.0 million or $0.64 per diluted share in the second quarter of 2016.

Six Months Ended

For the first six months of 2017, consolidated net sales decreased 4.4 percent or $45.4 million to $992.2 million compared to $1,037.6 million in the same period in 2016. The change was driven by a decrease in the office furniture segment, partially offset by an increase in sales in the hearth products segment. Office furniture segment sales were primarily down due to the net impact of acquisitions and divestitures of small office furniture companies, which was a net decrease in sales of $31.8 million compared to the same period in the prior year, and a decline in the supplies-driven business. The hearth products segment saw an increase in the new construction business due to growth in single family housing. The retail wood/gas business was approximately flat for the first six months of 2017 compared to the same period in 2016.

Gross profit percentage for the first six months of 2017 decreased to 36.1 percent compared to 38.0 percent for the same period last year. The decline in gross margin was driven by input cost inflation, lower volume, operational investments, product mix, deeper discounting, and higher restructuring and transition costs, partially offset by productivity and structural cost reductions.

20

During the first six months of 2017, the Corporation recorded $7.2 million of restructuring costs and $8.1 million of transition costs in cost of sales related to the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana and structural realignments in China and between office furniture facilities in Muscatine, Iowa. Specific items incurred include accelerated depreciation and production move costs. During the first six months of 2016, the Corporation recorded $1.4 million of restructuring costs and $5.3 million of transition costs in cost of sales related to the previously announced closure of the hearth manufacturing facility in Paris, Kentucky and structural realignments among office furniture facilities in Muscatine, Iowa.

For the first six months of 2017, total selling and administrative expenses as a percentage of net sales increased to 32.9 percent compared to 31.6 percent for the same period last year. This increase was driven by strategic growth investments and prior year non-repeating adjustments, partially offset by the impact of divestitures, lower incentive based compensation, and the impact of stock price changes on deferred compensation. The Corporation also recorded a $2.0 million nonrecurring gain on a litigation settlement in the second quarter of 2016.

The Corporation recorded $2.5 million of restructuring costs in the first six months of 2017 as part of selling and administrative expenses due to the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. In the same period last year, the Corporation recorded $1.7 million of restructuring costs as part of selling and administrative expenses due primarily to the previously announced closure of the hearth manufacturing facility in Paris, Kentucky.

Interest expense, net of interest income, for the first six months of 2017 decreased 30.3 percent, or $0.9 million, from the same period last year due to a lower average interest rate, a result from the payoff of previously outstanding senior notes that matured on April 6, 2016.

The Corporation's income tax provision for the six months ended July 1, 2017 was $8.9 million on pre-tax income of $27.6 million, or an effective tax rate of 32.4 percent. For the six months ended July 2, 2016, the Corporation's income tax provision was $21.8 million on pre-tax income of $62.7 million, or an effective tax rate of 34.8 percent. Refer to "Note 10. Income Taxes" for further information.

Net income attributable to the Corporation was $18.7 million or $0.41 per diluted share for the first six months of 2017 compared to $40.9 million or $0.90 per diluted share for the first six months of 2016.

Office Furniture

The following table presents certain key highlights from the results of operations in the office furniture segment (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017		July 2, 2016		Percent Change		July 1, 2017		July 2, 2016		Percent Change
Net sales	$	406,444	$	428,113	(5.1	)%	$	766,425	$	815,452	(6.0	)%
Cost of sales	269,507		264,406		1.9	%	507,124		516,641		(1.8	)%
Gross profit	136,937		163,707		(16.4	)%	259,301		298,811		(13.2	)%
Selling and administrative expenses	117,084		120,324		(2.7	)%	232,327		233,934		(0.7	)%
Restructuring charges	170		16		962.5	%	847		210		303.3	%
Operating profit	$	19,683	$	43,367	(54.6	)%	$	26,127	$	64,667	(59.6	)%

Three Months Ended

Second quarter 2017 net sales for the office furniture segment decreased 5.1 percent or $21.7 million to $406.4 million from $428.1 million for the same quarter last year. Sales decreased $22.5 million compared to the prior year quarter due to the net impact of acquisitions and divestitures of small office furniture companies. Sales for the quarter increased in the Corporation's North American contract and international businesses but were mostly offset by a decrease in the Corporation's supplies-driven business.

Second quarter 2017 operating profit decreased 54.6 percent or $23.7 million to $19.7 million from $43.4 million in the prior year quarter as a result of input cost inflation, deeper discounting, strategic growth investments, product mix, and higher restructuring and transition costs, partially offset by the impact of divestitures and lower incentive based compensation.

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In the second quarter of 2017, the office furniture segment recorded $2.4 million of restructuring costs and $3.3 million of transition costs associated with the previously announced closure of the office furniture manufacturing facility in Orleans, Indiana and structural realignments in China and between office furniture facilities in Muscatine, Iowa. Specific items incurred include accelerated depreciation and production move costs. Of these charges, $5.6 million was included in cost of sales. In the second quarter of 2016, the office furniture segment recorded $2.5 million of transition costs primarily associated with structural realignments among office furniture facilities in Muscatine, Iowa, all of which was included in cost of sales.

Six Months Ended

Net sales for the first six months of 2017 for the office furniture segment decreased 6.0 percent or $49.0 million to $766.4 million compared to $815.5 million for the same period in 2016. Sales were primarily down due to the net impact of acquisitions and divestitures of small office furniture companies, which was a net decrease in sales of $31.8 million compared to the same period in the prior year, and a decline in the supplies-driven business.

Operating profit for the first six months of 2017 decreased 59.6 percent or $38.5 million to $26.1 million compared to $64.7 million for the same period in 2016. The year-to-date decrease in operating profit was driven by the same drivers experienced in the current quarter.

During the first six months of 2017, the office furniture segment recorded $5.8 million of restructuring costs and $6.3 million of transition costs associated with the previously announced closure of the office furniture manufacturing facility in Orleans, Indiana and structural realignments in China and between office furniture facilities in Muscatine, Iowa. Specific items incurred include severance, accelerated depreciation, and production move costs. Of these charges, $11.2 million was included in cost of sales. During the first six months of 2016, the office furniture segment recorded $0.2 million of restructuring costs and $4.0 million of transition costs primarily associated with structural realignments among office furniture facilities in Muscatine, Iowa. Of these charges, $4.0 million was included in cost of sales.

Hearth Products

The following table presents certain key highlights from the results of operations in the hearth products segment (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017		July 2, 2016		Percent Change		July 1, 2017		July 2, 2016		Percent Change
Net sales	$	108,041	$	108,425	(0.4	)%	$	225,727	$	222,123	1.6	%
Cost of sales	60,226		63,212		(4.7	)%	126,553		126,303		0.2	%
Gross profit	47,815		45,213		5.8	%	99,174		95,820		3.5	%
Selling and administrative expenses	35,462		34,703		2.2	%	73,564		71,857		2.4	%
Restructuring charges	249		556		(55.2	)%	1,695		1,448		17.1	%
Operating profit	$	12,104	$	9,954	21.6	%	$	23,915	$	22,515	6.2	%

Three Months Ended

Second quarter 2017 net sales for the hearth products segment decreased 0.4 percent or $0.4 million to $108.0 million from $108.4 million for the same quarter last year. The hearth products segment saw an increase in the new construction business due to growth in single family housing. The retail wood/gas business declined due to the impacts of dealer distributors moving to the Corporation's more efficient just-in-time delivery model.

Second quarter 2017 operating profit increased 21.6 percent or $2.1 million to $12.1 million from $10.0 million in the prior year quarter as a result of structural cost reductions, favorable operational performance, and lower restructuring and transition costs.

In the second quarter of 2017, the hearth products segment recorded $0.9 million of restructuring costs and $1.0 million of transition costs associated with the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington. Specific items incurred include accelerated depreciation and production move costs. Of these charges, $1.7 million was included in cost of sales. In the second quarter of 2016, the hearth products segment recorded $2.0 million of restructuring costs and $1.0 million of transition costs associated with the previously announced closure of the Paris, Kentucky hearth manufacturing facility. Of these charges, $2.4 million was included in cost of sales.

22

Six Months Ended

Net sales for the first six months of 2017 for the hearth products segment increased 1.6 percent or $3.6 million to $225.7 million compared to $222.1 million for the same period in 2016. The change was driven by an increase in the new construction business due to growth in single family housing. The retail wood/gas business was approximately flat for the first six months of 2017 compared to the same period in 2016.

Operating profit for the first six months of 2017 increased 6.2 percent or $1.4 million to $23.9 million compared to $22.5 million for the same period in 2016. The year-to-date increase in operating profit was driven by structural cost reductions and favorable operational performance, partially offset by higher restructuring and transition costs.

During the first six months of 2017, the hearth products segment recorded $3.9 million of restructuring costs and $1.8 million of transition costs associated with the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington. Specific items incurred include severance, accelerated depreciation, and production move costs. Of these charges, $4.0 million was included in cost of sales. During the first six months of 2016, the hearth products segment recorded $2.9 million of restructuring costs and $1.3 million of transition costs associated with the previously announced closure of the Paris, Kentucky hearth manufacturing facility. Of these charges, $2.7 million was included in cost of sales.

Liquidity and Capital Resources

Cash Flow – Operating Activities

Operating activities used $27.3 million of cash in the first six months of 2017 compared to being a source of $31.8 million of cash in the first six months of 2016.  The increased use of cash compared to the prior year was primarily due to the impact of plant consolidations and operational transformations on net income in addition to changes in working capital timing, primarily driven by lower incentive compensation accruals and investments in inventory. Cash flow from operating activities is expected to be positive for the year.

Cash Flow – Investing Activities

Capital expenditures, including capitalized software, for the first six months of fiscal 2017 were $64.1 million compared to $55.9 million in the same period of fiscal 2016 and were primarily for tooling and equipment for new products, continuous improvements in manufacturing processes, building reconfiguration, and the on-going implementation of an integrated information system to support business process transformation.  For the full year 2017, capital expenditures are expected to be approximately $100 to $110 million.

Cash Flow – Financing Activities

Long-Term Debt

The Corporation’s revolving credit facility under the current credit agreement was entered into January 6, 2016 and matures January 6, 2021. As of July 1, 2017, there was $332 million outstanding under the $400 million revolving credit facility of which $240 million was classified as long-term as the Corporation does not expect to repay the borrowings within a year. Because the Corporation expects, but is not required, to repay the remaining $92 million in the next twelve months, it was classified as current. See "Note 11. Fair Value Measurements of Financial Instruments" in the Notes to Condensed Consolidated Financial Statements for further information.

Interest Rate Swap

In March 2016, the Corporation entered into an interest rate swap transaction to hedge $150 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of the interest rate swap, the Corporation pays a fixed rate of 1.29 percent and receives one month LIBOR on a $150 million notional value expiring January 2021. As of July 1, 2017, the fair value of the Corporation's interest rate swap was an asset of $2.1 million, which is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets. The interest rate swap is reported net of tax in the amount of $1.3 million in "Accumulated other comprehensive income (loss)" in the Condensed Consolidated Balance Sheets.

Dividend

On May 9, 2017, the Board approved a 3.6 percent increase in the common stock quarterly dividend from $0.275 per share to $0.285 per share. The dividend was paid on June 1, 2017 to shareholders of record on May 19, 2017.

Stock Repurchase

During the six months ended July 1, 2017, the Corporation repurchased 521,562 shares of common stock at a cost of $23.8 million, or an average price of $45.68 per share.  As of July 1, 2017, $113.1 million of the Board's current repurchase authorization remained unspent.

23

Cash, cash equivalents, and short-term investments, coupled with cash flow from future operations, borrowing capacity under the existing credit agreement, and the ability to access capital markets, are expected to be adequate to fund operations and satisfy cash flow needs for at least the next twelve months.

Off-Balance Sheet Arrangements

The Corporation does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Corporation's financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Contractual Obligations

Contractual obligations associated with ongoing business and financing activities will result in cash payments in future periods.  A table summarizing the amounts and estimated timing of these future cash payments was provided in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2016.  There were no material changes outside the ordinary course of business in the Corporation's contractual obligations or the estimated timing of the future cash payments for the first six months of fiscal 2017.

Commitments and Contingencies

See "Note 12. Guarantees, Commitments, and Contingencies" in the Notes to Condensed Consolidated Financial Statements for further information.

Critical Accounting Policies and Estimates

The preparation of the financial statements requires the Corporation to make estimates and judgments that affect the reported amount of assets, liabilities, revenues, and expenses, and related disclosure of contingent assets and liabilities.  The Corporation continually evaluates its accounting policies and estimates.  The Corporation bases its estimates on historical experience and on a variety of other assumptions believed by management to be reasonable in order to make judgments about the carrying value of assets and liabilities.  Actual results may differ from these estimates under different assumptions or conditions.  A summary of the more significant accounting policies that require the use of estimates and judgments in preparing the financial statements is provided in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2016.  

Recently Issued Accounting Standards Not Yet Adopted

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU requires companies to reevaluate when revenue is recorded on a transaction based upon newly defined criteria, either at a point in time or over time as goods or services are delivered. The ASU requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and estimates, and changes in those estimates. The FASB has recently issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, ASU No. 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, and ASU No. 2016-12, Revenue from Contracts with Customers: Narrow Scope Improvements and Practical Expedients to provide further clarification and guidance. The new standard becomes effective for the Corporation in fiscal 2018, and allows for both retrospective and modified-retrospective methods of adoption. The Corporation has completed a preliminary review of the impact of the new standard and expects changes in the way the Corporation recognizes certain marketing programs and pricing incentives, which are anticipated to not be material to the results of operations. The Corporation is also reviewing accounting policies and disclosures to determine changes needed to comply with this new standard, as well as identifying changes to the Corporation's business processes, systems, and controls needed to support adoption of this ASU. The Corporation expects to adopt the standard in fiscal 2018 using the modified-retrospective approach.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The new standard requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Changes to the lessee accounting model may change key balance sheet measures and ratios, potentially affecting analyst expectations and compliance with financial covenants. The new standard becomes effective for the Corporation in fiscal 2019, but may be adopted at any time, and requires a modified retrospective transition. The Corporation is currently evaluating the effect the standard will have on consolidated financial statements and related disclosures.

24

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The new standard provides classification guidance on eight cash flow issues including debt prepayment, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlements of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard becomes effective for the Corporation in fiscal 2018. The Corporation anticipates the standard will have an immaterial effect on consolidated statements of cash flows.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new standard requires an entity with defined benefit and postretirement benefit plans to present the service cost component of the net periodic benefit cost in the same income statement line item or items as other compensation costs arising from services rendered by employees during the period. All other components of net periodic benefit cost will be presented outside of operating income, if a subtotal is presented. The new standard is to be applied retrospectively to each period presented and becomes effective for the Corporation in fiscal 2018. The Corporation anticipates the standard will have an immaterial effect on consolidated statements of comprehensive income.

Looking Ahead

Management remains optimistic about the long-term prospects in the office furniture and hearth products markets.  Management believes the Corporation continues to compete well and remains confident the investments made in the business will continue to generate strong returns for shareholders.

Forward-Looking Statements

Statements in this report that are not strictly historical, including but not limited to statements as to future plans, outlook, objectives, and financial performance, are "forward-looking" statements, within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Words such as "anticipate," "believe," "could," "confident," "estimate," "expect," "forecast," "hope," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "will," "would," and variations of such words and similar expressions identify forward-looking statements.  Forward-looking statements involve known and unknown risks, which may cause the Corporation's actual results in the future to differ materially from expected results.  These risks include, without limitation:  the Corporation's ability to realize financial benefits from its (a) price increases, (b) cost containment and business simplification initiatives, including its business system transformation, (c) investments in strategic acquisitions, production capacity, new products and brand building, (d) investments in distribution and rapid continuous improvement, (e) ability to maintain its effective tax rate, (f) repurchases of common stock, and (g) closing, consolidation, and logistical realignment initiatives; uncertainty related to the availability of cash and credit, and the terms and interest rates on which credit would be available, to fund operations and future growth; lower than expected demand for the Corporation's products due to uncertain political and economic conditions, slow or negative growth rates in global and domestic economies or in the domestic housing market; lower industry growth than expected; major disruptions at the Corporation's key facilities or in the supply of any key raw materials, components, or finished goods; competitive pricing pressure from foreign and domestic competitors; higher than expected costs and lower than expected supplies of materials; higher costs for energy and fuel; changes in the mix of products sold and of customers purchasing; relationships with distribution channel partners, including the financial viability of distributors and dealers; restrictions imposed by the terms of the Corporation's revolving credit facility; changing legal, regulatory, environmental, and healthcare conditions; currency fluctuations; and other factors described in the Corporation's annual and quarterly reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q.  The Corporation cautions readers not to place undue reliance on any forward-looking statement, which speaks only as of the date made, and to recognize forward-looking statements are predictions of future results, which may not occur as anticipated. The Corporation undertakes no obligation to update, amend, or clarify forward-looking statements, except as required by applicable law.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of July 1, 2017, there were no material changes to the financial market risks that affect the quantitative and qualitative disclosures presented in Item 7A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2016.

25

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure information required to be disclosed by the Corporation in the reports it files or submits under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.  Disclosure controls and procedures are also designed to ensure that information is accumulated and communicated to management, including the chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of the chief executive officer and chief financial officer of the Corporation, management of the Corporation carried out an evaluation of the Corporation's disclosure controls and procedures pursuant to Exchange Act Rules 13a – 15(e) and 15d – 15(e).  As of July 1, 2017, based on this evaluation, the chief executive officer and chief financial officer have concluded these disclosure controls and procedures are effective.

Changes in Internal Controls

There have been no changes in the Corporation's internal control over financial reporting during the fiscal quarter covered by this quarterly report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

26

PART II.    OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings.

Item 1A. Risk Factors

There have been no material changes from the risk factors disclosed in the "Risk Factors" section of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities:

The following is a summary of share repurchase activity during the quarter:

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
04/02/17 – 04/29/17	56,900	$	46.24	56,900	$	122,589,973
04/30/17 – 05/27/17	60,000	$	44.21	60,000	$	119,937,466
05/28/17 – 07/01/17	170,287	$	40.34	170,287	$	113,068,268
Total	287,187			287,187

(1) No shares were purchased outside of a publicly announced plan or program.

The Corporation repurchases shares under previously announced plans authorized by the Board as follows:

• Corporation's share purchase program ("Program") announced November 9, 2007, providing share repurchase authorization of $200,000,000 with no specific expiration date, with an 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 2017, nor do any plans exist under which the Corporation does not intend to make further purchases. The Program does not obligate the Corporation to purchase any shares and the authorization for the Program may be terminated, increased or decreased by the Board at any time.

Item 6. Exhibits

See Exhibit Index.

27

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HNI Corporation
Date: August 1, 2017	By:	/s/ Marshall H. Bridges
		Marshall H. Bridges
		Vice President and Chief Financial Officer

28

EXHIBIT INDEX
(10.1)	HNI Corporation 2017 Stock-Based Compensation Plan (incorporated by reference from Exhibit 4.3 to the Corporation’s Form S-8 filed May 9, 2017)
(10.2)	2017 Equity Plan for Non-Employee Directors of HNI Corporation (incorporated by reference from Exhibit 4.4 to the Corporation’s Form S-8 filed on May 9, 2017)
(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 1, 2017 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) Consolidated Statements of Equity; (iv) Condensed Consolidated Statements of Cash Flows; and (v) Notes to Condensed Consolidated Financial Statements

29

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Sarbanes-Oxley Act Section 302

I, Stan A. Askren, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of HNI Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

    a.  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

    b.  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;    

    c.  evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

    d.  disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

    a.  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

    b.  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2017	By:	/s/ Stan A. Askren
		Name:  Stan A. Askren
		Title:    Chairman, President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Sarbanes-Oxley Act Section 302

I, Marshall H. Bridges, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of HNI Corporation;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

    a.  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

    b.  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;    

    c.  evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

    d.  disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

    a.  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

    b.  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2017	By:	/s/ Marshall H. Bridges
		Name:  Marshall H. Bridges
		Title:    Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 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

In connection with the Quarterly Report on Form 10-Q of HNI Corporation (the "Corporation") for the quarterly period ended July 1, 2017, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Stan A. Askren, as Chairman, President and Chief Executive Officer of the Corporation, and Marshall H. Bridges, as Vice President and Chief Financial Officer of the Corporation, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

1.  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation as of the dates and for the periods expressed in the Report.

Date: August 1, 2017	By:	/s/ Stan A. Askren
		Name:  Stan A. Askren
		Title:    Chairman, President and Chief Executive Officer

Date: August 1, 2017	By:	/s/ Marshall H. Bridges
		Name:   Marshall H. Bridges
		Title:     Vice President and Chief Financial Officer

XML

DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Jul. 01, 2017 shares
Document and Entity Information [Abstract]
Entity Registrant Name	HNI CORP
Entity Central Index Key	0000048287
Document Type	10-Q
Document Period End Date	Jul. 01, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	44,055,733

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 27,148	$ 36,312
Short-term investments	2,253	2,252
Receivables	227,212	229,436
Inventories	167,205	118,438
Prepaid expenses and other current assets	43,424	46,603
Total Current Assets	467,242	433,041
Property, Plant, and Equipment:
Land and land improvements	29,094	27,403
Buildings	305,821	283,930
Machinery and equipment	543,524	528,099
Construction in progress	60,671	51,343
Property plant and equipment, at cost	939,110	890,775
Less accumulated depreciation	551,169	534,330
Net Property, Plant, and Equipment	387,941	356,445
Goodwill	290,660	290,699
Deferred Income Taxes	1,095	719
Other Assets	254,221	249,330
Total Assets	1,401,159	1,330,234
Current Liabilities:
Accounts payable and accrued expenses	387,853	425,046
Current maturities of long-term debt	93,323	34,017
Current maturities of other long-term obligations	3,187	4,410
Total Current Liabilities	484,363	463,473
Long-Term Debt	240,000	180,000
Other Long-Term Liabilities	71,177	75,044
Deferred Income Taxes	111,270	110,708
Capital Stock:
Preferred stock - $1 par value, authorized 2,000 shares, no shares outstanding	0	0
Common stock - $1 par value, authorized 200,000 shares, outstanding: July 1, 2017 - 44,240 shares; December 31, 2016 - 44,079 shares	44,056	44,079
Additional paid-in capital	5,438	0
Retained earnings	449,130	461,524
Accumulated other comprehensive income (loss)	(4,633)	(5,000)
Total HNI Corporation shareholders' equity	493,991	500,603
Non-controlling interest	358	406
Total Equity	494,349	501,009
Total Liabilities and Equity	$ 1,401,159	$ 1,330,234

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jul. 01, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares outstanding (in shares)	44,056,000	44,079,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Income Statement [Abstract]
Net sales	$ 514,485	$ 536,538	$ 992,152	$ 1,037,575
Cost of sales	329,733	327,618	633,677	642,944
Gross profit	184,752	208,920	358,475	394,631
Selling and administrative expenses	162,684	162,319	326,350	327,425
Restructuring charges	419	572	2,542	1,658
Operating income	21,649	46,029	29,583	65,548
Interest income	325	63	396	141
Interest expense	1,347	1,131	2,393	3,005
Income before income taxes	20,627	44,961	27,586	62,684
Income taxes	6,771	15,934	8,949	21,815
Net income	13,856	29,027	18,637	40,869
Less: Net income (loss) attributable to non-controlling interest	8	(2)	(48)	(3)
Net income attributable to HNI Corporation	$ 13,848	$ 29,029	$ 18,685	$ 40,872
Average number of common shares outstanding – basic (in shares)	44,178,287	44,431,198	44,114,164	44,344,778
Net income attributable to HNI Corporation per common share – basic (in dollars per share)	$ 0.31	$ 0.65	$ 0.42	$ 0.92
Average number of common shares outstanding – diluted (in shares)	45,305,547	45,632,284	45,375,451	45,308,306
Net income attributable to HNI Corporation per common share – diluted (in dollars per share)	$ 0.31	$ 0.64	$ 0.41	$ 0.90
Foreign currency translation adjustments	$ 115	$ (755)	$ 459	$ (598)
Change in unrealized gains (losses) on marketable securities (net of tax)	19	23	37	73
Change in derivative financial instruments (net of tax)	(394)	(1,030)	(129)	(1,553)
Other comprehensive income (loss) (net of tax)	(260)	(1,762)	367	(2,078)
Comprehensive income	13,596	27,265	19,004	38,791
Less: Comprehensive income (loss) attributable to non-controlling interest	8	(2)	(48)	(3)
Comprehensive income attributable to HNI Corporation	$ 13,588	$ 27,267	$ 19,052	$ 38,794

XML

CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss)/Income	Non- controlling Interest
Beginning balance at Jan. 02, 2016	$ 477,299	$ 44,158	$ 4,407	$ 433,575	$ (5,186)	$ 345
Comprehensive income:
Net income (loss)	40,869			40,872		(3)
Other comprehensive income (net of tax)	(2,078)				(2,078)
Cash dividends	(23,984)			(23,984)
Common shares – treasury:
Shares purchased	(8,745)	(208)	(8,537)
Shares issued under Members’ Stock Purchase Plan and stock awards (net of tax)	22,525	505	22,020
Ending balance at Jul. 02, 2016	505,886	44,455	17,890	450,463	(7,264)	342
Beginning balance at Dec. 31, 2016	501,009	44,079	0	461,524	(5,000)	406
Comprehensive income:
Net income (loss)	18,637			18,685		(48)
Other comprehensive income (net of tax)	367				367
Cash dividends	(24,727)			(24,727)
Common shares – treasury:
Shares purchased	(23,828)	(522)	(16,954)	(6,352)
Shares issued under Members’ Stock Purchase Plan and stock awards (net of tax)	22,891	499	22,392
Ending balance at Jul. 01, 2017	$ 494,349	$ 44,056	$ 5,438	$ 449,130	$ (4,633)	$ 358

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CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.56	$ 0.54

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Net Cash Flows From (To) Operating Activities:
Net income	$ 18,637	$ 40,869
Noncash items included in net income:
Depreciation and amortization	36,464	31,631
Other post-retirement and post-employment benefits	796	821
Stock-based compensation	5,803	6,441
Excess tax benefits from stock compensation	0	(485)
Deferred income taxes	126	6,442
(Gain) loss on sale and retirement of long-lived assets and intangibles, net	671	130
Other – net	(2,327)	2,532
Net increase (decrease) in operating assets and liabilities	(85,064)	(50,560)
Increase (decrease) in other liabilities	(2,408)	(5,997)
Net cash flows from (to) operating activities	(27,302)	31,824
Net Cash Flows From (To) Investing Activities:
Capital expenditures	(51,730)	(42,422)
Proceeds from sale of property, plant, and equipment	658	499
Capitalized software	(12,358)	(13,434)
Acquisition spending, net of cash acquired	0	(34,064)
Purchase of investments	(2,040)	(4,875)
Sales or maturities of investments	1,937	4,758
Other – net	1,510	501
Net cash flows from (to) investing activities	(62,023)	(89,037)
Net Cash Flows From (To) Financing Activities:
Proceeds from sales of HNI Corporation common stock	8,313	5,401
Withholding related to net share settlements of equity based awards	(209)	0
Purchase of HNI Corporation common stock	(22,617)	(8,745)
Proceeds from long-term debt	238,890	506,359
Payments of note and long-term debt and other financing	(119,489)	(426,410)
Excess tax benefits from stock compensation	0	485
Dividends paid	(24,727)	(23,984)
Net cash flows from (to) financing activities	80,161	53,106
Net increase (decrease) in cash and cash equivalents	(9,164)	(4,107)
Cash and cash equivalents at beginning of period	36,312	28,548
Cash and cash equivalents at end of period	$ 27,148	$ 24,441

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Basis of Presentation

6 Months Ended

Jul. 01, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.  The December 31, 2016 consolidated balance sheet included in this Form 10-Q was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement have been included. Operating results for the six-month period ended July 1, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 30, 2017.  For further information, refer to the consolidated financial statements and accompanying notes included in HNI Corporation's (the "Corporation") Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

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Stock-Based Compensation

6 Months Ended

Jul. 01, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employees' requisite service periods. Stock-based compensation expense is the cost of stock options and time-based restricted stock units issued under the HNI Corporation 2007 Stock-Based Compensation Plan and shares issued under the HNI Corporation 2002 Members' Stock Purchase Plan and the HNI Corporation Members' Stock Purchase Plan adopted in 2017. The following table summarizes stock-based compensation expense (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Stock-based compensation expense	$	1,132	$	1,101	$	5,803	$	6,441

The options and units granted by the Corporation had fair values of the following (in thousands):

	Six Months Ended
	July 1, 2017		July 2, 2016
Stock options	$	7,206	$	7,680
Time-based restricted stock units	$	—	$	712

The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and restricted stock units as of July 1, 2017:

	Unrecognized Compensation Expense (in thousands)		Weighted-Average Remaining Service Period (years)
Non-vested stock options	$	4,721	1.3
Non-vested restricted stock units	$	621	0.9

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Inventories

6 Months Ended

Jul. 01, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories

The Corporation values its inventory at the lower of cost or net realizable value with approximately 85 percent valued by the last-in, first-out ("LIFO") costing method.

(In thousands)	July 1, 2017			December 31, 2016
Finished products	$	107,874		$	71,223
Materials and work in process	83,491			71,375
LIFO allowance	(24,160		)	(24,160		)
	$	167,205		$	118,438

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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

6 Months Ended

Jul. 01, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

The following tables summarize the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended (in thousands):

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2016	$	(1,188	)	$	(105	)	$	(5,167	)	$	1,460		$	(5,000	)
Other comprehensive income (loss) before reclassifications	459			57			—			(505		)	11
Tax (expense) or benefit	—			(20		)	—			186			166
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	—			—			—			190			190
Balance as of July 1, 2017	$	(729	)	$	(68	)	$	(5,167	)	$	1,331		$	(4,633	)

Amounts in parentheses indicate reductions in equity.

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of January 2, 2016	$	322		$	(2	)	$	(5,506	)	$	—		$	(5,186	)
Other comprehensive income (loss) before reclassifications	(598		)	112			—			(2,872		)	(3,358		)
Tax (expense) or benefit	—			(39		)	—			1,057			1,018
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	—			—			—			262			262
Balance as of July 2, 2016	$	(276	)	$	71		$	(5,506	)	$	(1,553	)	$	(7,264	)

Amounts in parentheses indicate reductions in equity.

In March 2016, the Corporation entered into an interest rate swap transaction to hedge $150 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of the interest rate swap, the Corporation pays a fixed rate of 1.29 percent and receives one month LIBOR on a $150 million notional value expiring January 2021. As of July 1, 2017, the fair value of the Corporation's interest rate swap was an asset of $2.1 million, which is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets. The interest rate swap is reported net of tax as $1.3 million in "Accumulated other comprehensive income (loss)" in the Condensed Consolidated Balance Sheets.

The following table details the reclassifications from accumulated other comprehensive income (loss) (in thousands):

		Three Months Ended						Six Months Ended
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Statement Where Net Income is Presented	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Derivative financial instruments
Interest rate swap	Interest (expense) or income	$	(108	)	$	(322	)	$	(301	)	$	(415	)
	Tax (expense) or benefit	40			119			111			153
	Net of tax	$	(68	)	$	(203	)	$	(190	)	$	(262	)

Amounts in parentheses indicate reductions to profit.

During the six months ended July 1, 2017, the Corporation repurchased 521,562 shares of its common stock at a cost of approximately $23.8 million. As of July 1, 2017, there was a payable of $1.2 million reflected in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets relating to shares repurchased but not yet settled. During the six months ended July 2, 2016, the Corporation repurchased 208,000 shares of its common stock at a cost of approximately $8.7 million. As of July 1, 2017, $113.1 million of the Corporation's Board of Directors' ("Board") current repurchase authorization remained unspent.

During the six months ended July 1, 2017 and July 2, 2016, the Corporation paid dividends to shareholders of $0.56 and $0.54 per share, respectively.

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Earnings Per Share

6 Months Ended

Jul. 01, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS") (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Numerator:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income	$	13,848	$	29,029	$	18,685	$	40,872
Denominators:
Denominator for basic EPS weighted-average common shares outstanding	44,178		44,431		44,114		44,345
Potentially dilutive shares from stock-based compensation plans	1,128		1,201		1,261		963
Denominator for diluted EPS	45,306		45,632		45,375		45,308
Earnings per share – basic	$	0.31	$	0.65	$	0.42	$	0.92
Earnings per share – diluted	$	0.31	$	0.64	$	0.41	$	0.90

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.

	Three Months Ended		Six Months Ended
	July 1, 2017	July 2, 2016	July 1, 2017	July 2, 2016
Common stock equivalents	875,580	444,723	745,738	730,884

The Corporation implemented ASU No. 2016-09 in the first quarter of fiscal 2017, which had an immaterial impact on the number of potentially dilutive shares from stock-based compensation plans for the three months and six months ended July 1, 2017. See "Note 13. Recently Adopted Accounting Standards" for more information regarding the implementation of ASU No. 2016-09.

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Restructuring

6 Months Ended

Jul. 01, 2017

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

Restructuring costs recorded in the Condensed Consolidated Statements of Comprehensive Income are as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Cost of sales - accelerated depreciation	$	2,960	$	1,423	$	7,158	$	1,423
Restructuring charges	419		572		2,542		1,658
	$	3,379	$	1,995	$	9,700	$	3,081

Restructuring costs in both the quarter and year-to-date periods for 2017 were incurred as part of the previously announced closures of the hearth manufacturing facilities in Paris, Kentucky and Colville, Washington and the office furniture manufacturing facility in Orleans, Indiana. The costs in both the quarter and year-to-date periods for 2016 were primarily incurred as part of the previously announced closure of the Paris, Kentucky hearth manufacturing facility.

The accrued restructuring expenses are expected to be paid in the next twelve months and are included in "Accounts payable and accrued expenses" in the Condensed Consolidated Balance Sheets. The following is a summary of changes in restructuring accruals during the six months ended (in thousands):

	Severance			Facility Exit Costs & Other			Total
Balance as of December 31, 2016	$	2,704		$	—		$	2,704
Restructuring charges, excluding accelerated depreciation	895			1,647			2,542
Cash payments	(1,699		)	(1,048		)	(2,747		)
Balance as of July 1, 2017	$	1,900		$	599		$	2,499

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Goodwill and Other Intangible Assets

6 Months Ended

Jul. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):

	Office Furniture			Hearth Products			Total
Balance as of December 31, 2016
Goodwill	$	165,643		$	183,199		$	348,842
Accumulated impairment losses	(58,000		)	(143		)	(58,143		)
Net goodwill balance as of December 31, 2016	107,643			183,056			290,699
Foreign currency translation adjustments	(39		)	—			(39		)
Balance as of July 1, 2017
Goodwill	165,604			183,199			348,803
Accumulated impairment losses	(58,000		)	(143		)	(58,143		)
Net goodwill balance as of July 1, 2017	$	107,604		$	183,056		$	290,660

The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Other Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	July 1, 2017						December 31, 2016
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	18,643	$	18,625	$	18	$	18,645	$	18,623	$	22
Software	161,438		28,364		133,074		149,587		25,792		123,795
Trademarks and trade names	7,564		1,731		5,833		7,564		1,401		6,163
Customer lists and other	115,578		66,584		48,994		117,789		65,103		52,686
Net definite lived intangible assets	$	303,223	$	115,304	$	187,919	$	293,585	$	110,919	$	182,666

Aggregate amortization expense was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Amortization expense	$	2,975	$	2,911	$	6,088	$	5,340

Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows (in millions):

	2017		2018		2019		2020		2021
Amortization expense	$	17.4	$	23.0	$	21.9	$	21.0	$	20.3

As events, such as acquisitions, dispositions, or impairments, occur in the future, these amounts may change.

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 "Other Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	July 1, 2017		December 31, 2016
Trademarks and trade names	$	37,511	$	38,054

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method.  This method employs market participant based assumptions.

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Product Warranties

6 Months Ended

Jul. 01, 2017

Product Warranties Disclosures [Abstract]

Product Warranties

Product Warranties

The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs.

A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience.  Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve.  Activity associated with warranty obligations was as follows (in thousands):

	Six Months Ended
	July 1, 2017			July 2, 2016
Balance at beginning of period	$	15,250		$	16,227
Accruals for warranties issued during period	11,276			10,159
Adjustments related to pre-existing warranties	32			276
Settlements made during the period	(11,332		)	(10,586		)
Balance at end of period	$	15,226		$	16,076

The current and long-term portions of the reserve for estimated settlements are included under "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Condensed Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid (in thousands):

	July 1, 2017		December 31, 2016
Current - in the next twelve months	$	6,823	$	6,975
Long-term - beyond one year	8,403		8,275
	$	15,226	$	15,250

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Post-Retirement Health Care

6 Months Ended

Jul. 01, 2017

Retirement Benefits [Abstract]

Post-Retirement Health Care

Post-Retirement Health Care

The following table sets forth the components of net periodic benefit costs included in the Condensed Consolidated Statements of Comprehensive Income (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Service cost	$	186	$	184	$	371	$	369
Interest cost	206		211		412		422
Amortization of (gain)/loss	6		15		13		30
Net periodic benefit cost	$	398	$	410	$	796	$	821

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Income Taxes

6 Months Ended

Jul. 01, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Corporation's tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Corporation's income tax provision for the three months ended July 1, 2017 was $6.8 million on pre-tax income of $20.6 million, or an effective tax rate of 32.8 percent. For the three months ended July 2, 2016, the Corporation's income tax provision was $15.9 million on pre-tax income of $45.0 million, or an effective tax rate of 35.4 percent. The effective tax rate was lower in the three months ended July 1, 2017 principally due to the enactment of ASU No. 2016-09 related to stock compensation in the first quarter of 2017. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when awards vest or are settled. See "Note 13. Recently Adopted Accounting Standards" in the Notes to Condensed Consolidated Financial Statements. The Corporation's tax provision for the six months ended July 1, 2017 includes a tax benefit of $1.0 million related to the adoption of this standard. The provision for income taxes for the six months ended July 1, 2017 reflects an effective tax rate of 32.4 percent compared to 34.8 percent for the same period last year. The drivers of the change in the effective tax rate for the first six months were the same as those for the quarter.

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Fair Value Measurements of Financial Instruments

6 Months Ended

Jul. 01, 2017

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 and derivative instruments.  The marketable securities are comprised of government securities, corporate bonds, and money market funds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1.  Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2.

Assets measured at fair value as of July 1, 2017 were as follows (in thousands):

	Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Government securities	$	6,588	$	—	$	6,588	$	—
Corporate bonds	$	5,840	$	—	$	5,840	$	—
Derivative financial instruments	$	2,106	$	—	$	2,106	$	—

Assets measured at fair value as of December 31, 2016 were as follows (in thousands):

	Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Government securities	$	6,268	$	—	$	6,268	$	—
Corporate bonds	$	6,017	$	—	$	6,017	$	—
Derivative financial instruments	$	2,309	$	—	$	2,309	$	—

In addition to the methods and assumptions discussed above, the Corporation uses the following methods and assumptions to estimate the fair value of its financial instruments.

Cash and cash equivalents - Level 1

The carrying amount approximated fair value and includes money market funds.

Long-term debt (including current portion) - Level 2

The carrying value of the Corporation's outstanding variable-rate debt obligations as of July 1, 2017 and December 31, 2016 was $332 million and $214 million, respectively, which approximated the fair value. 

The Corporation’s revolving credit facility under the current credit agreement was entered into January 6, 2016 and matures January 6, 2021. 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, which is to be amortized over the next twelve months, is reflected in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheets. The long-term portion is reflected in "Other Assets" in the Condensed Consolidated Balance Sheets.

As of July 1, 2017, there was $332 million outstanding under the $400 million revolving credit facility of which $240 million was classified as long-term as the Corporation does not expect to repay the borrowings within a year. Because the Corporation expects, but is not required, to repay the remaining $92 million in the next twelve months, it was classified as current.

The revolving credit facility under the credit agreement is the primary source of committed funding from which the Corporation finances its planned capital expenditures and strategic initiatives, such as acquisitions, repurchases of common stock and certain working capital needs.  

The credit agreement contains a number of covenants. Non-compliance with covenants in the credit agreement could prevent the Corporation from being able to access further borrowings under the revolving credit facility, require immediate repayment of all amounts outstanding with respect to the revolving credit facility and/or increase the cost of borrowing.

Certain 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, nonrecurring charges, and all non-cash items increasing net income.  As of July 1, 2017, 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 over the next twelve months.

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Guarantees, Commitments and Contingencies

6 Months Ended

Jul. 01, 2017

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 $18 million to back certain insurance policies and payment obligations.  The Corporation utilizes trade letters of credit and banker's acceptances in the amount of $5 million to guarantee certain payments to overseas suppliers. 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 has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, and other claims.  It is the Corporation's opinion that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation's financial condition, cash flows, or on the Corporation's quarterly or annual operating results when resolved in a future period.

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Recently Adopted Accounting Standards

6 Months Ended

Jul. 01, 2017

Accounting Changes and Error Corrections [Abstract]

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Corporation implemented the new standard in the first quarter of fiscal 2017. The primary impact of implementation was the recognition of excess tax benefits in the Corporation's provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2017. Excess tax benefits will be recorded in the operating section of the Condensed Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2017, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in the Corporation's Condensed Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Implementation of the new standard resulted in the recognition of excess tax benefits in the Corporation's provision for income taxes of $0.4 million and $1.0 million as a net tax benefit for the three months and six months ended July 1, 2017, respectively. Prior to the adoption of this standard, those amounts would have been recognized as an adjustment to "Additional paid-in capital" in the Condensed Consolidated Balance Sheets. See "Note 10. Income Taxes" in the Notes to Condensed Consolidated Financial Statements for further information.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The new standard is intended to simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value rather than the previous guidance of measuring inventory at the lower of cost or market. The Corporation implemented the new standard in the first quarter of fiscal 2017. As the Corporation previously calculated net realizable value when measuring inventory at the lower of cost or market, this standard had an immaterial effect on the condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). The new standard is to simplify the test for goodwill impairment by eliminating the step 2 requirement. Instead, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard is effective for fiscal 2020, but the Corporation has early adopted the standard in 2017. The Corporation has not been required to test for goodwill impairment through the second quarter of 2017.

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Reportable Segment Information

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment.

The aggregated office furniture segment manufactures and markets a broad line of metal and wood commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems, and other related products.  The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings, and accessories, principally for the home.

For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses.  These unallocated corporate expenses include the net costs of the Corporation's corporate operations, interest income, and interest expense.  Management views interest income and expense as corporate financing costs and not as a reportable segment cost.  In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, and corporate office real estate and related equipment.

No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation's primary market and capital investments are concentrated in the United States.

Reportable segment data reconciled to the Corporation's condensed consolidated financial statements is as follows (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Net Sales:
Office furniture	$	406,444		$	428,113		$	766,425		$	815,452
Hearth products	108,041			108,425			225,727			222,123
Total	$	514,485		$	536,538		$	992,152		$	1,037,575
Income Before Income Taxes:
Office furniture	$	19,683		$	43,367		$	26,127		$	64,667
Hearth products	12,104			9,954			23,915			22,515
General corporate	(11,160		)	(8,360		)	(22,456		)	(24,498		)
Total	$	20,627		$	44,961		$	27,586		$	62,684
Depreciation & Amortization Expense:
Office furniture	$	12,498		$	11,127		$	25,383		$	21,820
Hearth products	2,706			3,322			6,194			5,978
General corporate	2,421			1,931			4,887			3,833
Total	$	17,625		$	16,380		$	36,464		$	31,631
Capital Expenditures (including capitalized software):
Office furniture	$	16,345		$	13,580		$	37,365		$	30,048
Hearth products	5,134			4,459			7,212			7,012
General corporate	9,833			10,360			19,511			18,796
Total	$	31,312		$	28,399		$	64,088		$	55,856
							As of July 1, 2017			As of December 31, 2016
Identifiable Assets:
Office furniture							$	812,771		$	749,145
Hearth products							353,768			340,494
General corporate							234,620			240,595
Total							$	1,401,159		$	1,330,234

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Acquisitions and Divestitures

6 Months Ended

Jul. 01, 2017

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

On January 29, 2016, the Corporation acquired OFM, an office furniture company, with annual sales of approximately $30 million at a purchase price of $34.1 million, net of cash acquired, in an all cash transaction. The Corporation finalized the allocation of the purchase price during fourth quarter 2016. There were $15 million of intangible assets other than goodwill associated with this acquisition with estimated useful lives ranging from three to ten years with amortization recorded on a straight-line basis based on the projected cash flow associated with the respective intangible assets. There was $14 million of goodwill associated with this acquisition. The goodwill is deductible for income tax purposes.

As part of the Corporation's ongoing business strategy, it continues to acquire and divest small office furniture dealerships. There was no change to Goodwill in the first six months of 2017 as a result of this activity. Goodwill increased approximately $2 million in fiscal 2016 as a result of this activity.

The Corporation completed the sale of Artcobell, a K-12 education furniture business, on December 31, 2016. A pre-tax non-cash charge of approximately $23 million and a $10 million long-term note receivable, which was included in "Other Assets" in the Corporation's Consolidated Balance Sheets in Form 10-K for the fiscal year ended December 31, 2016, were recorded in relation to the sale. Artcobell had been included as part of the Corporation's office furniture segment. As of July 1, 2017, $0.8 million of the note receivable is current and is included in "Prepaid expenses and other current assets" in the Condensed Consolidated Balance Sheets.

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Basis of Presentation (Policies)

6 Months Ended

Jul. 01, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Stock-Based Compensation

The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award, and recognizes expense over the employees' requisite service periods.

Inventories

The Corporation values its inventory at the lower of cost or net realizable value with approximately 85 percent valued by the last-in, first-out ("LIFO") costing method.

Goodwill and Other Intangible Assets

The Corporation evaluates its goodwill and indefinite-lived intangible assets for impairment on an annual basis during the fourth quarter, or whenever indicators of impairment exist. The Corporation estimates the fair value of its reporting units using various valuation techniques, with the primary technique being a discounted cash flow method.  This method employs market participant based assumptions.

Product Warranties

The Corporation issues certain warranty policies on its office furniture and hearth products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design or workmanship. Reserves have been established for the various costs associated with the Corporation's warranty programs.

A warranty reserve is determined by recording a specific reserve for known warranty issues and an additional reserve for unknown claims that are expected to be incurred based on historical claims experience.  Actual claims incurred could differ from the original estimates, requiring adjustments to the reserve.  

Fair Value Measurements

For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities and derivative instruments.  The marketable securities are comprised of government securities, corporate bonds, and money market funds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1.  Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2.

Recently Adopted Accounting Standards

In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The new standard is intended to simplify accounting for share based employment awards to employees. Changes include: all excess tax benefits/deficiencies should be recognized as income tax expense/benefit; entities can make elections on how to account for forfeitures; and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow statement. The Corporation implemented the new standard in the first quarter of fiscal 2017. The primary impact of implementation was the recognition of excess tax benefits in the Corporation's provision for income taxes rather than paid-in capital beginning with the first quarter of fiscal 2017. Excess tax benefits will be recorded in the operating section of the Condensed Consolidated Statements of Cash Flows on a prospective basis. Prior to fiscal 2017, the tax benefits or shortfalls were recorded in financing cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares in the financing section had no impact to any of the periods presented in the Corporation's Condensed Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Implementation of the new standard resulted in the recognition of excess tax benefits in the Corporation's provision for income taxes of $0.4 million and $1.0 million as a net tax benefit for the three months and six months ended July 1, 2017, respectively. Prior to the adoption of this standard, those amounts would have been recognized as an adjustment to "Additional paid-in capital" in the Condensed Consolidated Balance Sheets. See "Note 10. Income Taxes" in the Notes to Condensed Consolidated Financial Statements for further information.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. The new standard is intended to simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value rather than the previous guidance of measuring inventory at the lower of cost or market. The Corporation implemented the new standard in the first quarter of fiscal 2017. As the Corporation previously calculated net realizable value when measuring inventory at the lower of cost or market, this standard had an immaterial effect on the condensed consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350). The new standard is to simplify the test for goodwill impairment by eliminating the step 2 requirement. Instead, an entity will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The standard is effective for fiscal 2020, but the Corporation has early adopted the standard in 2017. The Corporation has not been required to test for goodwill impairment through the second quarter of 2017.

Business Segment Information

Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal business segment.

The aggregated office furniture segment manufactures and markets a broad line of metal and wood commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems, and other related products.  The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings, and accessories, principally for the home.

For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses.  These unallocated corporate expenses include the net costs of the Corporation's corporate operations, interest income, and interest expense.  Management views interest income and expense as corporate financing costs and not as a reportable segment cost.  In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, and corporate office real estate and related equipment.

No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation's primary market and capital investments are concentrated in the United States.

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Stock-Based Compensation (Tables)

6 Months Ended

Jul. 01, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Based Compensation Expense

The following table summarizes stock-based compensation expense (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Stock-based compensation expense	$	1,132	$	1,101	$	5,803	$	6,441

Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period

The options and units granted by the Corporation had fair values of the following (in thousands):

	Six Months Ended
	July 1, 2017		July 2, 2016
Stock options	$	7,206	$	7,680
Time-based restricted stock units	$	—	$	712

Schedule of Unrecognized Compensation Cost, Nonvested Awards

The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock options and restricted stock units as of July 1, 2017:

	Unrecognized Compensation Expense (in thousands)		Weighted-Average Remaining Service Period (years)
Non-vested stock options	$	4,721	1.3
Non-vested restricted stock units	$	621	0.9

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Inventories (Tables)

6 Months Ended

Jul. 01, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories

The Corporation values its inventory at the lower of cost or net realizable value with approximately 85 percent valued by the last-in, first-out ("LIFO") costing method.

(In thousands)	July 1, 2017			December 31, 2016
Finished products	$	107,874		$	71,223
Materials and work in process	83,491			71,375
LIFO allowance	(24,160		)	(24,160		)
	$	167,205		$	118,438

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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Tables)

6 Months Ended

Jul. 01, 2017

Equity [Abstract]

Schedule of Components of Accumulated Other Comprehensive Income and Changes in Accumulated Other Comprehensive Income, Net of Tax

The following tables summarize the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable for the six months ended (in thousands):

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2016	$	(1,188	)	$	(105	)	$	(5,167	)	$	1,460		$	(5,000	)
Other comprehensive income (loss) before reclassifications	459			57			—			(505		)	11
Tax (expense) or benefit	—			(20		)	—			186			166
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	—			—			—			190			190
Balance as of July 1, 2017	$	(729	)	$	(68	)	$	(5,167	)	$	1,331		$	(4,633	)

Amounts in parentheses indicate reductions in equity.

	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of January 2, 2016	$	322		$	(2	)	$	(5,506	)	$	—		$	(5,186	)
Other comprehensive income (loss) before reclassifications	(598		)	112			—			(2,872		)	(3,358		)
Tax (expense) or benefit	—			(39		)	—			1,057			1,018
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	—			—			—			262			262
Balance as of July 2, 2016	$	(276	)	$	71		$	(5,506	)	$	(1,553	)	$	(7,264	)

Amounts in parentheses indicate reductions in equity.

Schedule of Reclassification from Accumulated Other Comprehensive Income

The following table details the reclassifications from accumulated other comprehensive income (loss) (in thousands):

		Three Months Ended						Six Months Ended
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Statement Where Net Income is Presented	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Derivative financial instruments
Interest rate swap	Interest (expense) or income	$	(108	)	$	(322	)	$	(301	)	$	(415	)
	Tax (expense) or benefit	40			119			111			153
	Net of tax	$	(68	)	$	(203	)	$	(190	)	$	(262	)

Amounts in parentheses indicate reductions to profit.

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Earnings Per Share (Tables)

6 Months Ended

Jul. 01, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Basic and Diluted

The following table reconciles the numerators and denominators used in the calculation of basic and diluted earnings per share ("EPS") (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Numerator:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income	$	13,848	$	29,029	$	18,685	$	40,872
Denominators:
Denominator for basic EPS weighted-average common shares outstanding	44,178		44,431		44,114		44,345
Potentially dilutive shares from stock-based compensation plans	1,128		1,201		1,261		963
Denominator for diluted EPS	45,306		45,632		45,375		45,308
Earnings per share – basic	$	0.31	$	0.65	$	0.42	$	0.92
Earnings per share – diluted	$	0.31	$	0.64	$	0.41	$	0.90

Schedule of Weighted Average Number of Shares

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.

	Three Months Ended		Six Months Ended
	July 1, 2017	July 2, 2016	July 1, 2017	July 2, 2016
Common stock equivalents	875,580	444,723	745,738	730,884

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Restructuring (Tables)

6 Months Ended

Jul. 01, 2017

Restructuring and Related Activities [Abstract]

Summary of Restructuring Costs

The following is a summary of changes in restructuring accruals during the six months ended (in thousands):

	Severance			Facility Exit Costs & Other			Total
Balance as of December 31, 2016	$	2,704		$	—		$	2,704
Restructuring charges, excluding accelerated depreciation	895			1,647			2,542
Cash payments	(1,699		)	(1,048		)	(2,747		)
Balance as of July 1, 2017	$	1,900		$	599		$	2,499

Restructuring costs recorded in the Condensed Consolidated Statements of Comprehensive Income are as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Cost of sales - accelerated depreciation	$	2,960	$	1,423	$	7,158	$	1,423
Restructuring charges	419		572		2,542		1,658
	$	3,379	$	1,995	$	9,700	$	3,081

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jul. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill, by reporting segment, are as follows (in thousands):

	Office Furniture			Hearth Products			Total
Balance as of December 31, 2016
Goodwill	$	165,643		$	183,199		$	348,842
Accumulated impairment losses	(58,000		)	(143		)	(58,143		)
Net goodwill balance as of December 31, 2016	107,643			183,056			290,699
Foreign currency translation adjustments	(39		)	—			(39		)
Balance as of July 1, 2017
Goodwill	165,604			183,199			348,803
Accumulated impairment losses	(58,000		)	(143		)	(58,143		)
Net goodwill balance as of July 1, 2017	$	107,604		$	183,056		$	290,660

Schedule of Finite-Lived Intangible Assets by Major Class

The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Other Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	July 1, 2017						December 31, 2016
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	18,643	$	18,625	$	18	$	18,645	$	18,623	$	22
Software	161,438		28,364		133,074		149,587		25,792		123,795
Trademarks and trade names	7,564		1,731		5,833		7,564		1,401		6,163
Customer lists and other	115,578		66,584		48,994		117,789		65,103		52,686
Net definite lived intangible assets	$	303,223	$	115,304	$	187,919	$	293,585	$	110,919	$	182,666

Finite-lived Intangible Assets Amortization Expense

Aggregate amortization expense was as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Amortization expense	$	2,975	$	2,911	$	6,088	$	5,340

Schedule of Expected Amortization Expense Table

Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five fiscal years is as follows (in millions):

	2017		2018		2019		2020		2021
Amortization expense	$	17.4	$	23.0	$	21.9	$	21.0	$	20.3

Schedule of Indefinite Lived Intangible Assets and Goodwill

These indefinite-lived intangible assets are reflected in "Other Assets" in the Condensed Consolidated Balance Sheets (in thousands):

	July 1, 2017		December 31, 2016
Trademarks and trade names	$	37,511	$	38,054

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Product Warranties (Tables)

6 Months Ended

Jul. 01, 2017

Product Warranties Disclosures [Abstract]

Activity Associated with Warranty Obligations

The following table summarizes when these estimated settlements are expected to be paid (in thousands):

	July 1, 2017		December 31, 2016
Current - in the next twelve months	$	6,823	$	6,975
Long-term - beyond one year	8,403		8,275
	$	15,226	$	15,250

Activity associated with warranty obligations was as follows (in thousands):

	Six Months Ended
	July 1, 2017			July 2, 2016
Balance at beginning of period	$	15,250		$	16,227
Accruals for warranties issued during period	11,276			10,159
Adjustments related to pre-existing warranties	32			276
Settlements made during the period	(11,332		)	(10,586		)
Balance at end of period	$	15,226		$	16,076

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Post-Retirement Health Care (Tables)

6 Months Ended

Jul. 01, 2017

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

The following table sets forth the components of net periodic benefit costs included in the Condensed Consolidated Statements of Comprehensive Income (in thousands):

	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Service cost	$	186	$	184	$	371	$	369
Interest cost	206		211		412		422
Amortization of (gain)/loss	6		15		13		30
Net periodic benefit cost	$	398	$	410	$	796	$	821

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Fair Value Measurements (Tables)

6 Months Ended

Jul. 01, 2017

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value

Assets measured at fair value as of July 1, 2017 were as follows (in thousands):

	Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Government securities	$	6,588	$	—	$	6,588	$	—
Corporate bonds	$	5,840	$	—	$	5,840	$	—
Derivative financial instruments	$	2,106	$	—	$	2,106	$	—

Assets measured at fair value as of December 31, 2016 were as follows (in thousands):

	Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Government securities	$	6,268	$	—	$	6,268	$	—
Corporate bonds	$	6,017	$	—	$	6,017	$	—
Derivative financial instruments	$	2,309	$	—	$	2,309	$	—

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Reportable Segment Information (Tables)

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Reportable Segment Data

Reportable segment data reconciled to the Corporation's condensed consolidated financial statements is as follows (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Net Sales:
Office furniture	$	406,444		$	428,113		$	766,425		$	815,452
Hearth products	108,041			108,425			225,727			222,123
Total	$	514,485		$	536,538		$	992,152		$	1,037,575
Income Before Income Taxes:
Office furniture	$	19,683		$	43,367		$	26,127		$	64,667
Hearth products	12,104			9,954			23,915			22,515
General corporate	(11,160		)	(8,360		)	(22,456		)	(24,498		)
Total	$	20,627		$	44,961		$	27,586		$	62,684
Depreciation & Amortization Expense:
Office furniture	$	12,498		$	11,127		$	25,383		$	21,820
Hearth products	2,706			3,322			6,194			5,978
General corporate	2,421			1,931			4,887			3,833
Total	$	17,625		$	16,380		$	36,464		$	31,631
Capital Expenditures (including capitalized software):
Office furniture	$	16,345		$	13,580		$	37,365		$	30,048
Hearth products	5,134			4,459			7,212			7,012
General corporate	9,833			10,360			19,511			18,796
Total	$	31,312		$	28,399		$	64,088		$	55,856
							As of July 1, 2017			As of December 31, 2016
Identifiable Assets:
Office furniture							$	812,771		$	749,145
Hearth products							353,768			340,494
General corporate							234,620			240,595
Total							$	1,401,159		$	1,330,234

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Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,132	$ 1,101	$ 5,803	$ 6,441
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of granted stock options			7,206	7,680
Unrecognized compensation cost	4,721		$ 4,721
Remaining requisite service period for unrecognized compensation cost (in years)			1 year 3 months 9 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjusted fair value of granted restricted stock units			$ 0	$ 712
Unrecognized compensation cost	$ 621		$ 621
Remaining requisite service period for unrecognized compensation cost (in years)			10 months 24 days

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Inventories (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Percentage of LIFO Inventory	85.00%
Inventories
Finished products	$ 107,874	$ 71,223
Materials and work in process	83,491	71,375
LIFO allowance	(24,160)	(24,160)
Inventories	$ 167,205	$ 118,438

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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Components) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 500,603
Other comprehensive income (loss) before reclassifications	11	$ (3,358)
Tax (expense) or benefit	166	1,018
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	190	262
Ending balance	493,991
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(5,000)	(5,186)
Ending balance	(4,633)	(7,264)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(1,188)	322
Other comprehensive income (loss) before reclassifications	459	(598)
Tax (expense) or benefit	0	0
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	0	0
Ending balance	(729)	(276)
Unrealized Gains (Losses) on Marketable Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(105)	(2)
Other comprehensive income (loss) before reclassifications	57	112
Tax (expense) or benefit	(20)	(39)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	0	0
Ending balance	(68)	71
Pension and Post-retirement Liabilities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(5,167)	(5,506)
Other comprehensive income (loss) before reclassifications	0	0
Tax (expense) or benefit	0	0
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	0	0
Ending balance	(5,167)	(5,506)
Derivative Financial Instruments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	1,460	0
Other comprehensive income (loss) before reclassifications	(505)	(2,872)
Tax (expense) or benefit	186	1,057
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	190	262
Ending balance	$ 1,331	$ (1,553)

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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016	Mar. 31, 2016
Class of Stock [Line Items]
Accumulated other comprehensive income (loss)	$ (4,633)		$ (5,000)
Common stock repurchased, not yet settled	$ 1,200
Cash dividends per common share (in dollars per share)	$ 0.56	$ 0.54
Common Stock
Class of Stock [Line Items]
Repurchased common stock (in shares)	521,562	208,000
Repurchased common stock, value	$ 23,800	$ 8,700
Stock repurchase program, remaining authorized repurchase amount	113,100
Interest rate swap
Class of Stock [Line Items]
Derivative, notional amount				$ 150,000
Derivative, fixed interest rate				1.29%
Derivative liability	2,100
Accumulated other comprehensive income (loss)	$ 1,300

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Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity (Reclassification) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest (expense) or income	$ (1,347)	$ (1,131)	$ (2,393)	$ (3,005)
Tax (expense) or benefit	(6,771)	(15,934)	(8,949)	(21,815)
Net income attributable to HNI Corporation	13,848	29,029	18,685	40,872
Interest rate swap | Reclassifications from accumulated other comprehensive income (loss) | Derivative Financial Instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest (expense) or income	(108)	(322)	(301)	(415)
Tax (expense) or benefit	40	119	111	153
Net income attributable to HNI Corporation	$ (68)	$ (203)	$ (190)	$ (262)

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Numerator:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income	$ 13,848	$ 29,029	$ 18,685	$ 40,872
Denominators:
Denominator for basic EPS weighted-average common shares outstanding (in shares)	44,178,287	44,431,198	44,114,164	44,344,778
Potentially dilutive shares from stock-based compensation plans (in shares)	1,128,000	1,201,000	1,261,000	963,000
Denominator for diluted EPS (in shares)	45,305,547	45,632,284	45,375,451	45,308,306
Earnings per share - basic (in dollars per share)	$ 0.31	$ 0.65	$ 0.42	$ 0.92
Earnings per share - diluted (in dollars per share)	$ 0.31	$ 0.64	$ 0.41	$ 0.90

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Earnings Per Share Antidilutive Securities Excluded from Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Common stock equivalents
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	875,580	444,723	745,738	730,884

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Restructuring Costs Expensed (Details) - Realignment of Office Furniture Facilities and Exit of Business Line - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 3,379	$ 1,995	$ 9,700	$ 3,081
Cost of sales - accelerated depreciation
Restructuring Cost and Reserve [Line Items]
Restructuring costs	2,960	1,423	7,158	1,423
Restructuring charges
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 419	$ 572	$ 2,542	$ 1,658

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Restructuring (Changes in Restructuring Accruals) (Details) - Realignment of Office Furniture Facilities and Exit of Business Line $ in Thousands	6 Months Ended
	Jul. 01, 2017 USD ($)
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2016	$ 2,704
Restructuring charges, excluding accelerated depreciation	2,542
Cash payments	(2,747)
Balance as of July 1, 2017	2,499
Severance
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2016	2,704
Restructuring charges, excluding accelerated depreciation	895
Cash payments	(1,699)
Balance as of July 1, 2017	1,900
Facility Exit Costs & Other
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2016	0
Restructuring charges, excluding accelerated depreciation	1,647
Cash payments	(1,048)
Balance as of July 1, 2017	$ 599

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Goodwill and Other Intangible Assets (Goodwill) (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017 USD ($)
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	$ 348,842
Accumulated impairment losses, beginning balance	(58,143)
Goodwill, net, beginning balance	290,699
Foreign currency translation adjustments	(39)
Goodwill, gross, ending balance	348,803
Accumulated impairment losses, ending balance	(58,143)
Goodwill, net, ending balance	290,660
Office Furniture
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	165,643
Accumulated impairment losses, beginning balance	(58,000)
Goodwill, net, beginning balance	107,643
Foreign currency translation adjustments	(39)
Goodwill, gross, ending balance	165,604
Accumulated impairment losses, ending balance	(58,000)
Goodwill, net, ending balance	107,604
Hearth Products
Goodwill [Roll Forward]
Goodwill, gross, beginning balance	183,199
Accumulated impairment losses, beginning balance	(143)
Goodwill, net, beginning balance	183,056
Foreign currency translation adjustments	0
Goodwill, gross, ending balance	183,199
Accumulated impairment losses, ending balance	(143)
Goodwill, net, ending balance	$ 183,056

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Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross	$ 303,223		$ 303,223		$ 293,585
Accumulated Amortization	115,304		115,304		110,919
Net	187,919		187,919		182,666
Amortization expense	2,975	$ 2,911	6,088	$ 5,340
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
2017	17,400		17,400
2018	23,000		23,000
2019	21,900		21,900
2020	21,000		21,000
2021	20,300		20,300
Patents
Finite-Lived Intangible Assets [Line Items]
Gross	18,643		18,643		18,645
Accumulated Amortization	18,625		18,625		18,623
Net	18		18		22
Software
Finite-Lived Intangible Assets [Line Items]
Gross	161,438		161,438		149,587
Accumulated Amortization	28,364		28,364		25,792
Net	133,074		133,074		123,795
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross	7,564		7,564		7,564
Accumulated Amortization	1,731		1,731		1,401
Net	5,833		5,833		6,163
Customer lists and other
Finite-Lived Intangible Assets [Line Items]
Gross	115,578		115,578		117,789
Accumulated Amortization	66,584		66,584		65,103
Net	$ 48,994		$ 48,994		$ 52,686

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Goodwill and Other Intangible Assets (Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets (excluding goodwill)	$ 37,511	$ 38,054

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Product Warranties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016
Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 15,250	$ 16,227
Accruals for warranties issued during period	11,276	10,159
Adjustments related to pre-existing warranties	32	276
Settlements made during the period	(11,332)	(10,586)
Balance at end of period	15,226	$ 16,076
Current - in the next twelve months	6,823		$ 6,975
Long-term - beyond one year	$ 8,403		$ 8,275

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Post-Retirement Health Care (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Retirement Benefits [Abstract]
Service cost	$ 186	$ 184	$ 371	$ 369
Interest cost	206	211	412	422
Amortization of (gain)/loss	6	15	13	30
Net periodic benefit cost	$ 398	$ 410	$ 796	$ 821

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Income Tax Disclosure [Abstract]
Income tax provision	$ 6,771	$ 15,934	$ 8,949	$ 21,815
Income before income taxes	$ 20,627	$ 44,961	$ 27,586	$ 62,684
Effective income tax rate (percent)	32.80%	35.40%	32.40%	34.80%
Excess tax benefit due to adoption of ASU 2016-09, amount	$ 400		$ 1,000

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Fair Value Measurements (Assets) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	$ 2,106	$ 2,309
Quoted prices in active markets for identical assets (Level 1)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Significant other observable inputs (Level 2)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	2,106	2,309
Significant unobservable inputs (Level 3)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative financial instruments	0	0
Government securities
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	6,588	6,268
Government securities | Quoted prices in active markets for identical assets (Level 1)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	0	0
Government securities | Significant other observable inputs (Level 2)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	6,588	6,268
Government securities | Significant unobservable inputs (Level 3)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	0	0
Corporate bonds
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	5,840	6,017
Corporate bonds | Quoted prices in active markets for identical assets (Level 1)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	0	0
Corporate bonds | Significant other observable inputs (Level 2)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	5,840	6,017
Corporate bonds | Significant unobservable inputs (Level 3)
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value disclosure	$ 0	$ 0

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Fair Value Measurements (Long-term Debt) (Details)	Jul. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)
Variable Rate Debt Instruments
Debt Instrument [Line Items]
Long-term debt	$ 332,000,000	$ 214,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding balance	332,000,000
Maximum borrowing capacity	400,000,000
Long-term Debt
Debt Instrument [Line Items]
Long-term debt	240,000,000
Short-term Debt
Debt Instrument [Line Items]
Long-term debt	$ 92,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Ratio of interest coverage to earnings for the last four fiscal quarters	4.0
Ratio of leverage to earnings for the last four fiscal quarters	3.5

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Guarantees, Commitments and Contingencies (Details) $ in Millions	Jul. 01, 2017 USD ($)
Letter of Credit
Line of Credit Facility [Line Items]
Letters of credit	$ 18
Trade Letters Of Credit And Bankers Acceptances
Line of Credit Facility [Line Items]
Letters of credit	$ 5

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Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 01, 2017	Jul. 01, 2017
Accounting Changes and Error Corrections [Abstract]
Excess tax benefit due to adoption of ASU 2016-09, amount	$ 0.4	$ 1.0

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Reportable Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017 USD ($)	Jul. 02, 2016 USD ($)	Jul. 01, 2017 USD ($) Segment	Jul. 02, 2016 USD ($)	Dec. 31, 2016 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | Segment			2
Segment Reporting Information [Line Items]
Net sales	$ 514,485	$ 536,538	$ 992,152	$ 1,037,575
Income before income taxes	20,627	44,961	27,586	62,684
Depreciation and amortization	17,625	16,380	36,464	31,631
Capital expenditures (including capitalized software)	31,312	28,399	64,088	55,856
Identifiable assets	1,401,159		1,401,159		$ 1,330,234
Operating segments | Office Furniture
Segment Reporting Information [Line Items]
Net sales	406,444	428,113	766,425	815,452
Income before income taxes	19,683	43,367	26,127	64,667
Depreciation and amortization	12,498	11,127	25,383	21,820
Capital expenditures (including capitalized software)	16,345	13,580	37,365	30,048
Identifiable assets	812,771		812,771		749,145
Operating segments | Hearth Products
Segment Reporting Information [Line Items]
Net sales	108,041	108,425	225,727	222,123
Income before income taxes	12,104	9,954	23,915	22,515
Depreciation and amortization	2,706	3,322	6,194	5,978
Capital expenditures (including capitalized software)	5,134	4,459	7,212	7,012
Identifiable assets	353,768		353,768		340,494
General corporate
Segment Reporting Information [Line Items]
Income before income taxes	(11,160)	(8,360)	(22,456)	(24,498)
Depreciation and amortization	2,421	1,931	4,887	3,833
Capital expenditures (including capitalized software)	9,833	$ 10,360	19,511	$ 18,796
Identifiable assets	$ 234,620		$ 234,620		$ 240,595

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Acquisitions and Divestitures (Details) - USD ($) $ in Thousands			6 Months Ended
	Dec. 31, 2016	Jan. 29, 2016	Jul. 01, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 290,699		$ 290,660
Increase in goodwill			$ 2,000
Small Office Furniture Company
Acquired Finite-Lived Intangible Assets [Line Items]
Annual sales		$ 30,000
Cost of acquisition		34,100
Intangible assets		15,000
Goodwill		$ 14,000
Small Office Furniture Company | Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible asset other than goodwill, useful life			3 years
Small Office Furniture Company | Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible asset other than goodwill, useful life			10 years
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Acquired Finite-Lived Intangible Assets [Line Items]
Pre-tax non-cash charge	23,000
Long term note receivable	$ 10,000
Receivables			$ 800