Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

3 Months Ended

Apr. 02, 2022

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 (in thousands):

	Foreign Currency Translation Adjustment		Unrealized Gains (Losses) on Debt Securities		Pension and Post-retirement Liabilities		Derivative Financial Instruments		Accumulated Other Comprehensive Income (Loss)
Balance as of January 1, 2022	$	(654)	$	59	$	(5,444)	$	(736)	$	(6,775)
Other comprehensive income (loss) before reclassifications	(568)		(519)		—		959		(128)
Tax (expense) or benefit	—		109		—		(227)		(118)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		—		—		181		181
Balance as of April 2, 2022	$	(1,222)	$	(351)	$	(5,444)	$	177	$	(6,840)

Amounts in parentheses indicate reductions to equity.

	Foreign Currency Translation Adjustment		Unrealized Gains (Losses) on Debt Securities		Pension and Post-retirement Liabilities		Derivative Financial Instruments		Accumulated Other Comprehensive Income (Loss)
Balance as of January 2, 2021	$	(1,071)	$	360	$	(6,682)	$	(1,760)	$	(9,153)
Other comprehensive income (loss) before reclassifications	(132)		(127)		—		130		(129)
Tax (expense) or benefit	—		27		—		(31)		(4)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		—		—		164		164
Balance as of April 3, 2021	$	(1,203)	$	260	$	(6,682)	$	(1,497)	$	(9,122)

Amounts in parentheses indicate reductions to equity.

Interest Rate Swap

In 2019, the Corporation entered into an interest rate swap transaction to hedge $75 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of this interest rate swap, the Corporation pays a fixed rate of 1.42 percent and receives one month LIBOR on a $75 million notional value expiring April 2023. As of April 2, 2022, the fair values of the Corporation's interest rate swap asset and liability were $0.3 million and $0.1 million, respectively; see "Note 9. Fair Value Measurements of Financial Instruments". The unrecognized change in value of the interest rate swap is reported net of tax as $0.2 million in "HNI Corporation Shareholders' Equity" in the Condensed Consolidated Balance Sheets.

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

		Three Months Ended
Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Statement Where Net Income is Presented	April 2, 2022		April 3, 2021
Derivative financial instruments
Interest rate swap	Interest expense, net	$	(236)	$	(214)
	Income taxes	55		50
	Net of tax	$	(181)	$	(164)

Amounts in parentheses indicate reductions to profit.

Dividend

The Corporation declared and paid cash dividends per common share as follows (in dollars):

	Three Months Ended
	April 2, 2022		April 3, 2021
Dividends per common share	$	0.310	$	0.305

Stock Repurchase

The following table summarizes shares repurchased and settled by the Corporation (in thousands, except per share data):

	Three Months Ended
	April 2, 2022		April 3, 2021
Shares repurchased	569		—
Average price per share	$	41.95	$	—
Cash purchase price	$	(23,889)	$	—
Prior year purchases settled in current year	(1,269)		—
Shares repurchased per cash flow	$	(25,158)	$	—

As of April 2, 2022, approximately $74 million remained of the Corporation's Board of Directors' ("Board") current repurchase authorization.