Financial Analysis

Guarantees, Commitments, and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of approximately $45 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and bankers' acceptances to guarantee certain payments to overseas suppliers. As of January 3, 2026, there was $7 million outstanding related to these types of guarantees. The letters of credit, bonds, and bankers acceptances reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation periodically guarantees borrowing arrangements involving certain workplace furnishings dealers and third-party financial institutions. The remaining terms of outstanding guarantees are less than five years in length and generally require the Corporation to make payments directly to the financial institution in the event that the dealer is unable to repay its borrowings in accordance with the stated terms. The aggregate amount guaranteed by the Corporation in connection with these agreements is approximately $7 million as of January 3, 2026. The Corporation has determined the likelihood of making future payments under these guarantees is not probable and therefore no liability has been accrued. The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, enviro …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt Debt is as follows: January 3, 2026 December 28, 2024 Revolving credit facility with interest at a variable rate (January 3, 2026 - 5.3%; December 28, 2024 - 6.4%) $ 15.0 $ 45.7 Term Loan A with interest at a variable rate (January 3, 2026 -5.2%) 350.0 Term Loan B with interest at a variable rate (January 3, 2026 -5.8%) 500.0 Term loan with interest at a variable rate ( December 28, 2024 - 5.9%) 200.0 Public Notes with fixed rates due in 2029 with an interest rate of 5.125% 450.0 Fixed rate notes due in 2025 with an interest rate of 4.2% 50.0 Fixed rate notes due in 2028 with an interest rate of 4.4% 50.0 Other amounts 2.4 0.3 Deferred debt issuance costs and discount (24.3) (1.4) Total debt 1,293.1 344.6 Less: Current maturities 16.2 50.3 Long-term debt $ 1,276.9 $ 294.3 Aggregate maturities of debt are as follows: 2026 2027 2028 2029 2030 Thereafter Maturities of debt $ 16.2 $ 22.5 $ 22.5 $ 473.4 $ 306.6 $ 476.3 The aggregate carrying value of the Corporations variable-rate, long-term debt obligations under the revolving credit and term loan facilities were $865 million and $246 million as of January 3, 2026 and December 28, 2024, respectively, which approximated fair value. The fair value of the public notes was estimated based on a discounted cash flow method (Level 2) to be $438 million as of January 3, 2026. Credit Facilities for Merger Agreement Transactions In connection with the Steelcase acquisition described in ""Note 4. Acquisitions and Divestitures"", on Se …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from contracts with customers disaggregated by product category is as follows: 2025 2024 2023 Systems, storage, and tables $ 1,298.4 $ 1,147.3 $ 1,057.4 Seating 650.6 583.7 525.4 Other (1) 215.1 157.0 157.5 Total Workplace Furnishings 2,164.1 1,888.0 1,740.3 Residential Building Products 674.9 638.4 693.7 $ 2,839.0 $ 2,526.4 $ 2,434.0 (1) The Other category consists of education-specific furnishings, architectural products, workspace accessories, and miscellaneous product lines and services.

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"Stock-Based Compensation Under the Corporations 2021 Stock-Based Compensation Plan (the ""2021 Plan""), the Corporation may award options to purchase shares of the Corporations common stock and grant other stock awards to key personnel. Upon shareholder approval of the 2021 Plan in May 2021, no additional awards were granted under the Corporations 2017 Stock-Based Compensation Plan (the ""2017 Plan""), but all outstanding awards previously granted under the 2017 Plan remain outstanding in accordance with their terms. During the second quarter of 2023, the Corporation assumed the Kimball International, Inc. Stock Incentive Plan and its remaining share pool. The plan was renamed the ""HNI Corporation Stock Incentive Plan for Legacy Kimball Employees"" (the ""2023 Kimball International Legacy Plan""). Under this plan the Corporation may grant equity compensation awards using the plans share pool. At inception, there were approximately 1.1 million shares of the Corporations stock available for issuance under this plan. During the fourth quarter of 2025, the Corporation assumed the Steelcase Inc. Incentive Compensation Plan and its remaining share pool. The plan was renamed the ""HNI Corporation Stock Incentive Plan for Legacy Steelcase Employees"" (the ""2025 Steelcase Inc Legacy Plan""). Under this plan the Corporation may grant stock-based compensation using the plan's share pool. At inception, there were approximately 2.4 million shares of the Corporation's stock available fo …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Fair Value Measurements of Financial Instruments For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, put option liabilities, and auction rate securities. The marketable securities are comprised of money market funds, government securities, corporate bonds, and mutual funds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Significant unobservable inputs, which are classified within Level 3, are used in the estimation of the fair value of put option liabilities and auction rate securities, determined using a simulation model based on assumptions including future cash flows, discount rates, and volatility. The activity for assets and liabilities measured at estimated fair value using Level 3 during 2025 and 2024 is immaterial. In connection with the Steelcase acquisition in December 2025, the Corporation acquired Steelcase's auction rate security and foreign exchange forward contracts. See ""Note 4. Acquisitions and Divestitures"" for more information on the acquisition of Steelcase and ""Note 2. Summary of Significant Accoun …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Consolidated Balance Sheets consisted of the following: January 3, 2026 December 28, 2024 Goodwill, net $ 958.0 $ 442.1 Definite-lived intangible assets, net 425.5 133.1 Indefinite-lived intangible assets 319.1 49.1 Total goodwill and other intangible assets, net $ 1,702.6 $ 624.3 Goodwill The changes in the carrying amount of goodwill, by reportable segment, are as follows: Workplace Furnishings Residential Building Products Total Balance as of December 30, 2023 Goodwill $ 297.2 $ 222.4 $ 519.6 Accumulated impairment losses (78.5) (0.1) (78.6) Net goodwill balance as of December 30, 2023 $ 218.7 $ 222.3 $ 441.0 Goodwill measurement period adjustments 1.1 1.1 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 Preliminary goodwill acquired 515.9 515.9 Goodwill disposed (13.9) (13.9) Accumulated impairment losses disposed 13.9 13.9 Balance as of January 3, 2026 Goodwill 800.3 222.4 1,022.7 Accumulated impairment losses (64.6) (0.1) (64.7) Net goodwill balance as of January 3, 2026 $ 735.7 $ 222.3 $ 958.0 Current year preliminary goodwill acquired relates to the acquisition of Steelcase, and may change materially during the next year. Current year goodwill disposed and accumulated impairment losses disposed relate to the second quarter 2025 sale of HNI India. Prior …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The components for income before income taxes are as follows: 2025 2024 2023 Domestic $ 94.5 $ 180.1 $ 64.1 Foreign (3.7) (0.8) 0.7 Total income before income taxes $ 90.8 $ 179.3 $ 64.8 Significant components of the provision for income taxes are as follows: 2025 2024 2023 Current: Federal $ (4.7) $ 44.0 $ 11.6 State 4.3 7.2 4.1 Foreign 3.2 1.9 0.9 Current provision 2.8 53.1 16.6 Deferred: Federal 30.1 (12.0) (2.0) State 3.0 (1.3) 1.1 Foreign 0.6 0.0 (0.1) Deferred provision 33.7 (13.2) (1.0) Total Federal 25.4 32.0 9.6 State 7.3 5.9 5.2 Foreign 3.8 1.9 0.8 Total income tax expense $ 36.5 $ 39.8 $ 15.6 The differences between the actual tax expense and tax expense computed at the statutory United States federal tax rate, along with the corresponding percentage of income before income tax, are attributable to the following: 2025 2024 2023 US federal statutory income tax rate $ 19.1 21.0 % $ 37.7 21.0 % $ 13.6 21.0 % Domestic federal Tax credits Research and development tax credits (5.0) (5.5) % (6.5) (3.6) % (6.3) (9.7) % Foreign tax credits (2.0) (2.2) % % % Other tax credits (1.0) (1.2) % (0.1) (0.1) % (0.2) (0.3) % Nontaxable and nondeductible items Equity based compensation (1.5) (1.6) % 0.3 0.2 % 0.4 0.6 % Executive compensation limitations 3.1 3.4 % 3.0 1.7 % 1.7 2.6 % Acquisition Costs 2.6 2.9 % % 1.8 2.7 % Excess parachute payments 11.2 12.3 % % % Other 0.1 0.1 % (0.4) (0.2) % 0.0 0.0 % Cross-border tax laws 0.0 0.0 % (0.3) (0.2) % (0.2) (0.3) % Domestic …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of January 3, 2026, approximately 92 percent of the value of the Corporations leased assets is for real estate. The remaining 8 percent of the value of the Corporations leased assets is for equipment. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and international operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at the Corporations sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the leas …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Standards In December 2025, the Corporation adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures retrospectively for all periods presented in the consolidated financial statements. ASU 2023-09 enhances transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation, and disaggregation of income taxes paid by jurisdiction. Additionally, the ASU requires disclosure of pretax income (or loss) and income tax (or benefit) disaggregated by domestic and foreign. Finally, the ASU removes the requirement of certain disclosures related to unrecognized tax benefits. The ASU adoption did not have a material impact on the Corporation's financial statements. See ""Note 8. Income Taxes."""

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"Restructuring and Impairment Restructuring, impairment, and loss on divestiture activity in the current year relate to the loss on divestiture of HNI India, described in ""Note 4. Acquisitions and Divestitures,"" the impairment of intangible assets at a small Workplace Furnishings business, described in ""Note 6. Goodwill and Other Intangible Assets,"" and continued manufacturing optimization initiatives across all segments, including production relocation at the Mexico plant and certain domestic plants. These projects are comprised of cash and non-cash set-up and move costs recorded to cost of sales, including accelerated depreciation and asset relocation and disposal costs. Current-year cash restructuring costs were also incurred for employee benefits in connection with facility closures in Workplace Furnishings. Restructuring recorded in 2024 and 2023 included goodwill and intangible asset impairments incurred at small Workplace Furnishings brands and manufacturing optimization initiatives, primarily in the Workplace Furnishings segment. Restructuring and impairment charges were as follows: Classification 2025 2024 2023 Workplace Furnishings Cost of sales Inventory valuation Cost of sales $ $ $ (0.3) Facility set-up and consolidation costs Cost of sales 2.5 5.0 1.2 Divestiture of HNI India Restructuring, impairment, and loss on divestiture 6.1 Long-lived asset charges Restructuring, impairment, and loss on divestiture 2.3 Exit costs Restructuring, impairment, and loss on …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue from Contracts with Customers Disaggregation of Revenue Revenue from contracts with customers disaggregated by product category is as follows: 2025 2024 2023 Systems, storage, and tables $ 1,298.4 $ 1,147.3 $ 1,057.4 Seating 650.6 583.7 525.4 Other (1) 215.1 157.0 157.5 Total Workplace Furnishings 2,164.1 1,888.0 1,740.3 Residential Building Products 674.9 638.4 693.7 $ 2,839.0 $ 2,526.4 $ 2,434.0 (1) The Other category consists of education-specific furnishings, architectural products, workspace accessories, and miscellaneous product lines and services. Sales by product category are subject to similar economic factors and market conditions. See ""Note 15. Reportable Segment Information"" for further information about operating segments. Contract Liabilities The Corporation has contract liabilities consisting of customer deposits included in ""Accounts payable and accrued expenses"" in the Consolidated Balance Sheets and are as follows: January 3, 2026 December 28, 2024 Contract liabilities - Customer deposits $ 102.9 $ 42.1 Approximately $68.1 million of the increase in customer deposits in the current year is driven by the acquisition of Steelcase. See ""Note 4. Acquisitions and Divestitures"" for further information. Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon satisfaction of the performance obligations. Revenue recognized during the years ended January 3, 20 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Reportable Segment Information Management views the Corporation as two reportable segments based on industry: Workplace Furnishings and Residential Building Products. On December 10, 2025, the Corporation completed its acquisition of Steelcase, as such, Steelcase will be included in the Workplace Furnishings segment. The Workplace Furnishings segment designs, manufactures, and markets a broad line of commercial office furniture which includes panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, social collaborative items, ancillary products, and hospitality products. The Residential Building Products segment manufactures and markets a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. For purposes of segment reporting, intercompany sales between segments are immaterial, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated general corporate expenses include the net costs of the Corporations corporate operations. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to th …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts and transactions of the Corporation and its subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. On December 10, 2025, the Corporation acquired Steelcase Inc. (""Steelcase""), and on June 1, 2023, the Corporation acquired Kimball International. The Corporation included the financial results of Steelcase and Kimball International in the Consolidated Financial Statements starting as of the dates of their respective acquisitions. See ""Note 4. Acquisitions and Divestitures"" for further information. Investments in entities where equity ownership falls between 20% and 50%, or where the Corporation otherwise has significant influence, are accounted for under the equity method of accounting. All other investments in unconsolidated affiliates without readily determinable fair values are measured at cost, less impairment, adjusted for observable price changes. These investments are reported as ""Other Assets"" in the Consolidated Balance Sheets, and income (losses) these investments are reported in ""Other non-operating income, net"" in the Consolidated Statements of Comprehensive Income. See ""Note 19. Investments in Unconsolidated Affiliates"" for further information. Reclassifications Certain reclassifications have been made within the financial statements to conform to the current year presentation. Cash, Cash Eq …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"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 31, 2022 $ (6.4) $ (0.6) $ (1.1) $ 0.1 $ (8.0) Other comprehensive income (loss) before reclassifications (0.2) 0.3 (0.2) (3.4) (3.5) Tax (expense) or benefit (0.1) 0.1 0.8 0.8 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.1 0.1 (0.2) 0.0 Balance as of December 30, 2023 $ (6.5) $ (0.3) $ (1.2) $ (2.7) $ (10.6) Other comprehensive income (loss) before reclassifications (0.4) 0.1 1.3 2.5 3.5 Tax (expense) or benefit (0.0) (0.3) (0.6) (0.9) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.0 0.1 (0.4) (0.2) Balance as of December 28, 2024 $ (6.9) $ (0.1) $ (0.1) $ (1.1) $ (8.3) Other comprehensive income (loss) before reclassifications 2.5 0.3 1.6 (1.0) 3.5 Tax (expense) or benefit (0.1) (0.5) 0.2 (0.3) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 6.0 (0.0) 2.2 0.4 8.6 Balance as of January 3, 2026 $ 1.6 $ 0.1 $ 3.3 $ (1.5) $ 3.5 Amounts in par …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"Subsequent Events Facility Exit On January 8, 2026, after the balance sheet date, the Corporation announced it will exit its Wayland, New York facility in 2027. See ""Note 16. Restructuring and Impairment"" for further information. On February 20, 2026, the U.S. Supreme Court invalidated the current U.S. presidential administration's tariff measures after concluding that the International Emergency Economic Powers Act did not authorize their imposition. It is uncertain how future repercussions of the ruling and other changes in trade policy would impact our operations, supply chain, and cash flow."

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"Guarantees, Commitments, and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of approximately $57 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and bankers' acceptances to guarantee certain payments to suppliers; as of July 4, 2026, there was $7 million outstanding related to these types of guarantees. The letters of credit, bonds, and bankers acceptances reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation periodically guarantees borrowing arrangements involving certain workplace furnishings dealers and third-party financial institutions. The remaining terms of outstanding guarantees are less than 4 years in length and generally require the Corporation to make payments directly to the financial institution in the event that the dealer is unable to repay its borrowings in accordance with the stated terms. The aggregate amount guaranteed by the Corporation in connection with these agreements is approximately $7 million as of July 4, 2026. The Corporation has determined the likelihood of making future payments under these guarantees is not probable and the associated liability is immaterial. The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediatio …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt Debt is as follows: July 4, 2026 January 3, 2026 Revolving credit facility with interest at a variable rate (July 4, 2026 - 5.3 %; January 3, 2026 - 5.3 %) $ 103.0 $ 15.0 Term Loan A with interest at a variable rate (July 4, 2026 - 5.3%; January 3, 2026 - 5.2%) 345.6 350.0 Term Loan B with interest at a variable rate (July 4, 2026 - 5.4%; January 3, 2026 - 5.8%) 497.5 500.0 Public Notes with fixed rates due in 2029 with an interest rate of 5.125% 450.0 450.0 Other amounts 2.4 Deferred debt issuance costs (20.9) (24.3) Total debt 1,375.2 1,293.1 Less: Current maturities of debt 18.1 16.2 Long-term debt $ 1,357.1 $ 1,276.9 The aggregate carrying value of the Corporations variable-rate, long-term debt obligations under the revolving credit and term loan facilities at July 4, 2026 was $946 million, which approximated fair value. The fair value of the public notes was estimated based on a discounted cash flow method (Level 2) to be $443 million at July 4, 2026. Credit Facilities for Merger Agreement Transactions On September 5, 2025, in connection with the acquisition of Steelcase, the Corporation entered into a Credit Agreement, by and among the Corporation, certain domestic subsidiaries of the Corporation, the lenders from time-to-time party thereto, Wells Fargo Bank, National Association, as administrative agent, and other parties named therein (as amended, restated, supplemented or otherwise modified by time to time, including by Amendment No. 1 to Credit Agreement, date …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from contracts with customers disaggregated by product category is as follows: Three Months Ended Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Systems, storage, and tables $ 594.9 $ 322.0 $ 1,157.8 $ 597.2 Seating 343.7 149.7 655.7 283.3 Education 170.6 20.8 245.9 28.6 Other (1) 214.5 23.4 449.9 47.9 Total workplace furnishings 1,323.7 516.0 2,509.2 957.0 Residential building products 148.7 151.1 310.8 309.8 Net sales $ 1,472.4 $ 667.1 $ 2,819.9 $ 1,266.8 (1) The other category consists of architectural products, workspace accessories, and miscellaneous product lines and services.

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"Stock-Based Compensation The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award. Forms of awards issued under shareholder-approved plans include stock options, restricted stock units based on a service condition (""restricted stock units""), restricted stock units based on both performance and service conditions (""performance stock units""), and shares issued under member stock purchase plans. Stock-based compensation expense related to stock options, restricted stock units, and performance stock units is recognized over the employees requisite service periods, adjusted for an estimated forfeiture rate for those awards not expected to vest. Additionally, expense related to performance stock units is periodically adjusted for the probable number of shares to be awarded based on Corporation achievement within an established target range of cumulative profitability over a multi-year period. There were no stock options granted during the periods covered below, and as of July 4, 2026, there was no unrecognized compensation cost related to stock option awards. The following table summarizes expense associated with these plans: Three Months Ended Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Compensation cost $ 9.6 $ 3.3 $ 27.7 $ 10.1 The increase in stock-based compensation expense in the current year was driven by increased grants including new participants following the acquisition of Steelcase. See …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Fair Value Measurements of Financial Instruments For recognition purposes, on a recurring basis, the Corporation is required to measure at fair value its marketable securities, derivative financial instruments, put option liabilities, and auction rate securities. The marketable securities are comprised of money market funds, government securities, corporate bonds, and mutual funds. When available, the Corporation uses quoted market prices to determine fair value and classifies such measurements within Level 1. Where market prices are not available, the Corporation makes use of observable market-based inputs (prices or quotes from published exchanges and indexes) to calculate fair value using the market approach, in which case the measurements are classified within Level 2. Significant unobservable inputs, which are classified within Level 3, are used in the estimation of the fair value of put option liabilities and auction rate securities, determined using a simulation model based on assumptions including future cash flows, discount rates, and volatility. The activity for assets and liabilities measured at estimated fair value using Level 3 during the current- and prior-year period was immaterial. Financial instruments measured at fair value were as follows: Fair value as of measurement date Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance as of July 4, 2026 Cash and …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Goodwill and Other Intangible Assets Goodwill and other intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following: July 4, 2026 January 3, 2026 Goodwill, net $ 833.3 $ 958.0 Definite-lived intangible assets, net 626.3 425.5 Indefinite-lived intangible assets 333.0 319.1 Total goodwill and other intangible assets, net $ 1,792.6 $ 1,702.6 Goodwill The activity in the carrying amount of goodwill, by reporting segment, was as follows: Workplace Furnishings Residential Building Products Total Balance as of January 3, 2026 Goodwill $ 800.3 $ 222.4 $ 1,022.7 Accumulated impairment losses (64.6) (0.1) (64.7) Net goodwill balance as of January 3, 2026 735.7 222.3 958.0 Goodwill measurement period adjustments (124.7) (124.7) Balance as of July 4, 2026 Goodwill 675.6 222.4 898.0 Accumulated impairment losses (64.6) (0.1) (64.7) Net goodwill balance as of July 4, 2026 $ 611.0 $ 222.3 $ 833.3 Goodwill measurement period adjustments in the current year relate to the acquisition of Steelcase in the fourth quarter of 2025. Goodwill related to the acquisition of Steelcase may change materially during 2026 while the measurement period is open. See ""Note 3. Acquisitions and 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: July 4, 2026 January 3 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The Corporations 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 Corporations income tax provision: Three Months Ended Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Income before income taxes $ 71.2 $ 62.0 $ 15.5 $ 80.9 Income taxes $ 20.1 $ 13.8 $ 3.2 $ 18.8 Effective tax rate 28.2 % 22.2 % 20.9 % 23.2 % The Corporations effective tax rate for the three months ended July 4, 2026 was higher than the rate for the corresponding prior-year period, primarily due to the impact of non-deductible executive compensation, unfavorable equity-based compensation adjustments, and the settlement of certain foreign-related tax positions. The Corporation's effective tax rate for the six months ended July 4, 2026 was lower than the corresponding prior-year period, primarily due to favorable equity-based compensation adjustments …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Restructuring, Impairment, and Loss on Divestiture Restructuring and impairment activity in the current year primarily relate to the Corporation's network optimization initiatives and structural cost actions, which consists primarily of severance and associated expenses, taken across the business. In Workplace Furnishings these costs are mainly the result of facility closure and consolidation costs related to the Wayland, New York facility, along with the termination of Steelcases multi-year ERP implementation project. The facility closure and consolidation costs are comprised of cash and non-cash set-up and move costs recorded to cost of sales, including accelerated depreciation and asset relocation and disposal costs. In Residential Building Products these costs are related to the held for sale status of a small residential building products business. Assets held for sale are included in ""Prepaid expenses and other current assets"" in the Condensed Consolidated Balance Sheets. Prior-year restructuring activity relates to the loss on divestiture of HNI India, described in ""Note 3. Acquisitions and Divestitures,"" and continued manufacturing optimization initiatives in Workplace Furnishings, including production relocation at the Mexico plant and certain domestic plants. These projects are comprised of cash and non-cash set-up and moving costs recorded to cost of sales, including accelerated depreciation and asset relocation and disposal costs. Three Months Ended Six Month …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue from Contracts with Customers Disaggregation of Revenue Revenue from contracts with customers disaggregated by product category is as follows: Three Months Ended Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Systems, storage, and tables $ 594.9 $ 322.0 $ 1,157.8 $ 597.2 Seating 343.7 149.7 655.7 283.3 Education 170.6 20.8 245.9 28.6 Other (1) 214.5 23.4 449.9 47.9 Total workplace furnishings 1,323.7 516.0 2,509.2 957.0 Residential building products 148.7 151.1 310.8 309.8 Net sales $ 1,472.4 $ 667.1 $ 2,819.9 $ 1,266.8 (1) The other category consists of architectural products, workspace accessories, and miscellaneous product lines and services. Sales by product category are subject to similar economic factors and market conditions. See ""Note 14. Reportable Segment Information"" for further information about operating segments. The increase in Workplace Furnishings net sales in the current year period was driven by the acquisition of Steelcase in December 2025. See ""Note 3. Acquisition and Divestitures"" for further information. Contract Liabilities The Corporation has contract liabilities consisting of customer deposits included in ""Accounts payable and accrued expenses"" in the Condensed Consolidated Balance Sheets as follows: July 4, 2026 January 3, 2026 Contract liabilities - Customer deposits $ 89.0 $ 102.9 Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recogn …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Reportable Segment Information Management views the Corporation as two reportable segments based on industries: Workplace Furnishings and Residential Building Products. On December 10, 2025, the Corporation completed its acquisition of Steelcase, which is included in the Workplace Furnishings segment. The Workplace Furnishings segment designs, manufactures, and markets a broad line of commercial office furniture which includes panel-based and freestanding furniture systems, seating, storage, benching, tables, architectural products, social collaborative items, ancillary products, and hospitality products. The Residential Building Products segment manufactures and markets a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. For purposes of segment reporting, intercompany sales between segments are immaterial, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated general corporate expenses include the net costs of the Corporations corporate operations. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. The Corporation's chief operating decision maker (""CODM"") is the Chairman, Pre …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"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: Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instrument Accumulated Other Comprehensive Income (Loss) Balance as of January 3, 2026 $ 1.6 $ 0.1 $ 3.3 $ (1.5) $ 3.5 Other comprehensive income (loss) before reclassifications (7.2) (0.2) 0.7 (6.7) Tax (expense) or benefit 0.0 (0.2) (0.1) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 0.4 0.4 Balance as of July 4, 2026 $ (5.6) $ (0.0) $ 3.3 $ (0.5) $ (2.9) Amounts in parentheses indicate reductions to equity. Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Debt Securities Pension and Post-retirement Liabilities Derivative Financial Instrument Accumulated Other Comprehensive Income (Loss) Balance as of December 28, 2024 $ (6.9) $ (0.1) $ (0.1) $ (1.1) $ (8.3) Other comprehensive income (loss) before reclassifications 0.5 0.2 (1.0) (0.3) Tax (expense) or benefit (0.0) 0.2 0.2 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 5.7 2.0 0.1 7.9 Balance as of June 28, 2025 $ (0.6) $ 0.0 $ 2.0 $ (1.8) $ (0.4) Amounts in parentheses indicate reductions to equity. Interest Rate Swap During the no …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing