Goodwill and Other Intangible Assets

6 Months Ended

Jun. 28, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following:

	June 28, 2025		December 28, 2024
Goodwill, net	$	442.1	$	442.1
Definite-lived intangible assets, net	119.3		133.1
Indefinite-lived intangible assets	49.1		49.1
Total goodwill and other intangible assets, net	$	610.6	$	624.3

Goodwill

The activity in the carrying amount of goodwill, by reporting segment, was as follows:

	Workplace Furnishings		Residential Building Products		Total
Balance as of December 28, 2024
Goodwill	$	298.3	$	222.4	$	520.7
Accumulated impairment losses	(78.5)		(0.1)		(78.6)
Net goodwill balance as of December 28, 2024	219.8		222.3		442.1
Goodwill derecognized	(13.9)		—		(13.9)
Accumulated impairment losses derecognized	13.9		—		13.9
Balance as of June 28, 2025
Goodwill	284.4		222.4		506.8
Accumulated impairment losses	(64.6)		(0.1)		(64.7)
Net goodwill balance as of June 28, 2025	$	219.8	$	222.3	$	442.1

Goodwill and accumulated impairment losses derecognized in the current year relate to the sale of the HNI India business during the second quarter of 2025. See "Note 3. Divestitures" for further information.

Definite-lived intangible assets

The table below summarizes amortizable definite-lived intangible assets, which are reflected in "Goodwill and Other Intangible Assets, net" in the Condensed Consolidated Balance Sheets:

	June 28, 2025						December 28, 2024
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Software	$	188.3	$	158.7	$	29.6	$	189.3	$	151.3	$	38.0
Trademarks and trade names	17.9		8.9		8.9		17.9		8.3		9.5
Customer lists and other	139.7		58.9		80.9		139.7		54.3		85.5
Net definite-lived intangible assets	$	345.9	$	226.5	$	119.3	$	346.9	$	213.9	$	133.1

Amortization expense is reflected in "Selling and administrative expenses" in the Condensed Consolidated Statements of Comprehensive Income and was as follows:

	Three Months Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Capitalized software	$	4.7	$	5.2	$	9.4	$	10.4
Other definite-lived intangibles	$	2.6	$	2.6	$	5.2	$	5.2

The occurrence of events such as acquisitions, dispositions, or impairments may impact future amortization expense. Over the next several years, amortization expense is expected to decline due primarily to the completion of the amortization of the Corporation's Business Systems Transformation investment. Based on the current amount of intangible assets subject to amortization, the estimated amortization expense for each of the following five years is as follows:

	2025		2026		2027		2028		2029
Amortization expense	$	28.4	$	23.5	$	17.3	$	9.0	$	8.9

Indefinite-lived intangible assets

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 "Goodwill and Other Intangible Assets, net" in the Condensed Consolidated Balance Sheets:

	June 28, 2025		December 28, 2024
Trademarks and trade names	$	49.1	$	49.1

Impairment Analysis

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 also evaluates long-lived assets (which include definite-lived intangible assets) for impairment if indicators exist. No impairment triggers were identified that warranted further impairment analysis in the current period.