Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 02, 2021

Accounting Policies [Abstract]

Schedule of Cash, Cash Equivalents and Investments

Cash, cash equivalents, and investments are reflected in the Consolidated Balance Sheets and were as follows (in thousands):

	January 2, 2021						December 28, 2019
	Cash and cash equivalents		Short-term investments		Other Assets		Cash and cash equivalents		Short-term investments		Other Assets
Debt securities	$	—	$	1,687	$	11,912	$	—	$	1,096	$	11,566
Equity investment	—		—		1,500		—		—		1,500
Cash and money market accounts	116,120		—		—		52,073		—		—
Total	$	116,120	$	1,687	$	13,412	$	52,073	$	1,096	$	13,066

The following table summarizes the amortized cost basis of the debt securities (in thousands):

	January 2, 2021		December 28, 2019
Amortized cost basis of debt securities	$	13,143	$	12,542

Allowance for Doubtful Accounts

The following table summarizes the change in the allowance for doubtful accounts (in thousands):

	Balance at beginning of period		Current period provision		Amounts written off		Recoveries and other adjustments		Balance at end of period
Year ended January 2, 2021	$	3,559	$	3,625	$	(1,685)	$	15	$	5,514
Year ended December 28, 2019	$	3,867	$	508	$	(1,099)	$	283	$	3,559
Year ended December 29, 2018	$	1,904	$	2,440	$	(461)	$	(16)	$	3,867

Schedule Of Inventory Current Table

Inventories included in the Consolidated Balance Sheets consisted of the following (in thousands):

	January 2, 2021			December 28, 2019
Finished products	$	98,527		$	118,633
Materials and work in process	70,264			75,526
Last-in, first-out ("LIFO") allowance	(30,980)			(30,694)
Total inventories	$	137,811		$	163,465
Inventory valued by the LIFO costing method	75		%	65		%

Schedule of Property, Plant and Equipment

Total depreciation expense was as follows (in thousands):

	2020		2019		2018
Depreciation expense	$	53,420	$	53,022	$	51,063

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued expenses are reflected in the Consolidated Balance Sheets and were as follows (in thousands):

	January 2, 2021		December 28, 2019
Trade accounts payable	$	190,527	$	227,557
Compensation	49,439		53,147
Profit sharing and retirement expense	26,414		28,264
Marketing expenses	31,969		46,344
Freight	15,288		15,998
Customer deposits	21,101		8,628
Other accrued expenses	78,900		73,264
	$	413,638	$	453,202

Schedule of Product Warranties

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

	2020		2019		2018
Balance at beginning of period	$	15,865	$	15,450	$	15,388
Accruals for warranties issued during period	9,380		11,035		12,316
Adjustments related to pre-existing warranties	127		906		351
Settlements made during the period	(9,263)		(11,526)		(12,605)
Balance at end of period	$	16,109	$	15,865	$	15,450

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

	January 2, 2021		December 28, 2019
Current - in the next twelve months	$	5,918	$	7,940
Long-term - beyond one year	10,191		7,925
	$	16,109	$	15,865

Schedule of Product Development Expense

The amounts charged against income and recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income were as follows (in thousands):

	2020		2019		2018
Research and development costs	$	35,318	$	34,699	$	33,420

Schedule of Freight Expense

Freight expense on shipments to customers was recorded in "Selling and administrative expenses" on the Consolidated Statements of Comprehensive Income as follows (in thousands):

	2020		2019		2018
Freight expense	$	98,417	$	123,667	$	134,190

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):

	2020		2019		2018
Numerator:
Numerator for both basic and diluted EPS attributable to HNI Corporation net income	$	41,917	$	110,505	$	93,377
Denominators:
Denominator for basic EPS weighted-average common shares outstanding	42,689		43,101		43,639
Potentially dilutive shares from stock-based compensation plans	267		394		689
Denominator for diluted EPS	42,956		43,495		44,328
Earnings per share – basic	$	0.98	$	2.56	$	2.14
Earnings per share – diluted	$	0.98	$	2.54	$	2.11

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The weighted-average common stock equivalents presented above do not include the effect of the common stock equivalents in the table below because their inclusion would be anti-dilutive (in thousands):

	2020	2019	2018
Common stock equivalents excluded because their inclusion would be anti-dilutive	3,110	2,131	1,508

Schedule of Insurance Reserves

The general, auto, product, and workers’ compensation liabilities are managed using a wholly-owned insurance captive and the related liabilities are included in the Consolidated Balance Sheets as follows (in thousands):

	January 2, 2021		December 28, 2019
General, auto, product, and workers' compensation liabilities	$	25,666	$	26,233