Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity

Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss), net of tax, as applicable:

	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 December 28, 2019	$	(2.9)	$	0.1	$	(5.8)	$	0.5	$	(8.1)
Other comprehensive income (loss) before reclassifications	1.4		0.4		(1.5)		(3.2)		(2.9)
Tax (expense) or benefit	—		(0.1)		0.3		0.8		1.0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	0.4		(0.0)		0.2		0.2		0.8
Balance as of January 2, 2021	$	(1.1)	$	0.4	$	(6.7)	$	(1.8)	$	(9.2)
Other comprehensive income (loss) before reclassifications	0.4		(0.3)		1.2		0.4		1.7
Tax (expense) or benefit	—		0.1		(0.3)		(0.1)		(0.3)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(0.0)		0.3		0.7		1.1
Balance as of January 1, 2022	$	(0.7)	$	0.1	$	(5.4)	$	(0.7)	$	(6.8)
Other comprehensive income (loss) before reclassifications	(2.4)		(0.9)		5.3		1.1		3.2
Tax (expense) or benefit	—		0.2		(1.3)		(0.3)		(1.3)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(3.3)		(0.0)		0.2		(0.0)		(3.1)
Balance as of December 31, 2022	$	(6.4)	$	(0.6)	$	(1.1)	$	0.1	$	(8.0)

Amounts in parentheses indicate reductions to equity.

Interest Rate Swap

In April 2022, the Corporation terminated its interest rate swap agreement and received cash proceeds of $0.4 million, the fair value of the swap on the termination date. The proceeds were recorded as cash provided by operating activities in the Consolidated Statements of Cash Flows. The $0.4 million gain from the termination of this interest rate swap agreement was recorded to "Accumulated other comprehensive income (loss)" and will be amortized to interest expense through April 2023, the remaining term of the original interest rate swap agreement.

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

Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Statement Where Net Income is Presented	2022		2021		2020
Derivative financial instruments
Interest rate swap	Interest expense, net	$	0.1	$	(1.0)	$	(0.3)
	Income tax expense	(0.0)		0.2		0.1
Unrealized gains on debt securities
Gain on sale of debt securities	Selling and administrative expenses	0.0		0.0		0.0
	Income tax expense	(0.0)		(0.0)		(0.0)
Pension and post-retirement liabilities
Amortization of loss	Selling and administrative expenses	(0.3)		(0.5)		(0.3)
	Income tax expense	0.1		0.1		0.1
Foreign currency translation
Lamex divestiture	Gain on sale of subsidiary	3.3		—		—
Foreign entity reorganization	Selling and administrative expenses	—		—		(0.4)
	Net of tax	$	3.1	$	(1.1)	$	(0.8)

Amounts in parentheses indicate reductions to profit.

Director Plan

In May 2017, the Corporation registered 0.3 million shares of its common stock under its 2017 Equity Plan for Non-Employee Directors of HNI Corporation (the "2017 Director Plan"). The 2017 Director Plan permits the Corporation to issue to its non-employee directors options to purchase shares of Corporation common stock, restricted stock or restricted stock units of the Corporation, and awards of Corporation common stock. The 2017 Director Plan also permits non-employee directors to elect to receive all or a portion of their annual retainers and other compensation in the form of shares of Corporation common stock. Shares of common stock issued under the Director Plan in 2022, 2021, and 2020, were 32 thousand, 25 thousand, and 38 thousand, respectively.

Dividend

The Corporation declared and paid cash dividends per common share as follows:

	2022		2021		2020
Dividends per common shares	$	1.27	$	1.24	$	1.22

Members’ Stock Purchase Plan

During 2017, shareholders approved the HNI Corporation Members’ Stock Purchase Plan (the "2017 MSPP"). Under the 2017 MSPP, 0.8 million shares of common stock were registered for issuance to participating members. Under the 2017 MSPP, rights to purchase stock are granted on a quarterly basis to all participating members who customarily work 20 hours or more per week and for five months or more in any calendar year. The price of the stock purchased under the MSPP is 85 percent of the closing price on the exercise date. No member may purchase stock under the MSPP in an amount which exceeds a maximum fair value of $25,000 in any calendar year. Shares of common stock issued under the MSPP in 2022, 2021, and 2020, were 88 thousand, 68 thousand, and 93 thousand, respectively. The following table provides the average price per share issued under the MSPP:

	2022		2021		2020
Average price per share	$	26.50	$	34.49	$	25.30

An additional 0.3 million shares were available for issuance under the 2017 MSPP as of December 31, 2022.

Change in Control

The Corporation has entered into change in control employment agreements with certain officers. According to the agreements, a change in control occurs when a third person or entity becomes the beneficial owner of 20 percent or more of the Corporation’s common stock, when more than one-third of the Board is composed of persons not recommended by at least three-fourths of the incumbent Board, upon certain business combinations involving the Corporation, or upon approval by the Corporation’s shareholders of a complete liquidation or dissolution. Upon a change in control, a key member is deemed to have a two-year

employment agreement with the Corporation, and all of his or her benefits vest under the Corporation’s compensation plans. If, at any time within two years of the change in control, his or her employment is terminated by the Corporation for any reason other than cause or disability, or by the key member for good reason, as such terms are defined in the agreement, then the key member is entitled to receive, among other benefits, a severance payment equal to two times (three times for the Corporation’s Chairman, President, and Chief Executive Officer) annual salary and the average of the prior two years’ bonuses.

Stock Repurchase

The par value method of accounting is used for common stock repurchases. The following table summarizes shares repurchased and settled by the Corporation:

	2022		2021		2020
Shares repurchased	1.7		1.5		0.2
Average price per share	$	38.11	$	39.89	$	29.83
Cash purchase price	$	(63.9)	$	(60.4)	$	(6.4)
Purchases unsettled as of year end	—		1.3		—
Prior year purchases settled in current year	(1.3)		—		(0.4)
Shares repurchased per cash flow	$	(65.2)	$	(59.2)	$	(6.8)

As of December 31, 2022, approximately $234.0 million of the Board’s current repurchase authorization remained unspent.