Income Taxes

6 Months Ended

Jun. 28, 2025

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 following table summarizes the Corporation’s income tax provision:

	Three Months Ended						Six Months Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
Income before income taxes	$	62.0		$	46.0		$	80.9		$	68.0
Income taxes	$	13.8		$	10.0		$	18.8		$	14.3
Effective tax rate	22.2		%	21.7		%	23.2		%	21.0		%

The Corporation’s effective tax rate was higher in the three months ended June 28, 2025, compared to same period in the prior year primarily due to favorable adjustments in the prior year. The effective tax was higher in the six months ended June 28, 2025, compared to the same period in the prior year due primarily to the current year loss on divestiture of HNI India that was not deductible for income tax purposes.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA includes significant provisions, including permanent extensions of certain expiring provisions of the Tax Cuts and Jobs Act, modification to the international tax framework and restoration of favorable tax treatment for certain business provisions. These changes include allowing accelerated tax deductions for qualified business property and immediate expensing of research and development expenditures. The legislation has multiple effective dates, with some provisions effective in 2025 and other provisions scheduled to become effective on various dates through 2027. Effects of changes in tax laws, including retroactive changes, are recognized in the financial statements in the period that the changes are enacted. The Corporation is currently assessing the impact on the consolidated financial statements, which will be reflected in future financial reporting as the enactment date was after period end.