x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
An
Iowa Corporation
|
408
East Second Street
|
IRS
Employer No. 42-0617510
|
P.
O. Box 1109
|
||
Muscatine,
IA 52761-0071
|
||
563/272-7400
|
Large
accelerated filer x
|
Accelerated
filer o
|
Non-accelerated
filer o
|
PART
I
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Page
|
||
4
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||
11
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||
17
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||
17
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19
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||
19
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20
|
||
PART
II
|
||
21
|
||
22
|
||
23
|
||
32
|
||
32
|
||
32
|
||
32
|
||
33
|
||
PART
III
|
||
34
|
||
34
|
||
34
|
||
34
|
||
34
|
PART
IV
|
||
35
|
||
37
|
||
38
|
||
39
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||
41
|
||
74
|
||
75
|
ITEM
1.
|
BUSINESS
|
ITEM
1A.
|
RISK
FACTORS
|
·
|
diversion
of management’s attention;
|
·
|
difficulties
in assimilating the operations and products of an acquired business
or in
realizing projected efficiencies, cost savings, and revenue
synergies;
|
·
|
potential
loss of key employees or customers of the acquired businesses or
adverse
effects on existing business relationships with suppliers and
customers;
|
·
|
adverse
impact on overall profitability if acquired businesses do not achieve
the
financial results projected in our valuation
models;
|
·
|
reallocation
of amounts of capital from other operating initiatives or an increase
in
our leverage and debt service requirements to pay the acquisition
purchase
prices, which could in turn restrict our ability to access additional
capital when needed or to pursue other important elements of our
business
strategy;
|
·
|
inaccurate
assessment of undisclosed, contingent, or other liabilities or problems
and unanticipated costs associated with the acquisition;
and
|
·
|
incorrect
estimates made in accounting for acquisitions, incurrence of non-recurring
charges, and write-off of significant amounts of goodwill that could
adversely affect our operating
results.
|
·
|
social
and political turmoil, official corruption, and civil
unrest;
|
·
|
restrictive
government actions, such as the imposition of trade quotas and tariffs
and
restrictions on transfers of funds;
|
·
|
changes
in labor laws and regulations affecting our ability to hire, retain,
or
dismiss employees;
|
·
|
the
need to comply with multiple and potentially conflicting laws and
regulations, including environmental laws and
regulations;
|
·
|
preference
for locally branded products and laws and business practices favoring
local competition;
|
·
|
less
effective protection of intellectual
property;
|
·
|
unfavorable
business conditions or economic instability in any particular country
or
region; and
|
·
|
difficulty
in obtaining distribution and
support.
|
·
|
uncertainty
related to disruptions of business by accidents, third-party labor
disputes, terrorism, military action, natural disasters, epidemic,
acts of
God, or other force majeure events;
|
·
|
reduced
demand for our storage products caused by changes in office technology,
including the change from paper record storage to electronic record
storage;
|
·
|
the
effects of economic conditions on demand for office furniture and
hearth
products, customer insolvencies, bankruptcies and related bad debts
and
claims against us that we received preferential
payments;
|
·
|
our
ability to realize cost savings and productivity improvements from
our
cost containment and business simplification
initiatives;
|
·
|
our
ability to realize financial benefits from our repurchases of common
stock;
|
·
|
volatility
in the market price and trading volume of equity securities may adversely
affect the market price for our common
stock;
|
·
|
our
ability to protect our intellectual
property;
|
·
|
potential
claims by third-parties that we infringed upon their intellectual
property
rights;
|
·
|
our
insurance may not adequately insulate us from expenses for product
defects; and
|
·
|
our
ability to retain our experienced management team and recruit other
key
personnel.
|
ITEM
1B.
|
UNRESOLVED
STAFF COMMENTS
|
ITEM
2.
|
PROPERTIES
|
Location
|
Approximate
Square
Feet
|
Owned
or Leased
|
Description
of
Use
|
|||
Cedartown,
Georgia
|
547,014
|
Owned
|
Manufacturing
nonwood casegoods office furniture (1)
|
|||
Chester,
Virginia
|
382,082
|
Owned/
Leased(2)
|
Manufacturing
nonwood casegoods office furniture (1)
|
|||
Dongguan,
China
|
1,007,716
|
Owned
|
Manufacturing
wood casegoods office furniture
|
|||
Florence,
Alabama
|
308,763
|
Owned
|
Manufacturing
nonwood casegoods
office furniture
|
|||
Lake
City, Minnesota
|
235,000
|
Owned
|
Manufacturing
metal prefabricated fireplaces (1)
|
|||
Mt.
Pleasant, Iowa
|
288,006
|
Owned
|
Manufacturing
metal prefabricated fireplaces (1)
|
|||
Muscatine,
Iowa
|
286,000
|
Owned
|
Manufacturing
nonwood casegoods office furniture
|
|||
Muscatine,
Iowa
|
578,284
|
Owned
|
Warehousing
office furniture
(1)
|
|||
Muscatine,
Iowa
|
236,100
|
Owned
|
Manufacturing
nonwood casegoods office furniture
|
|||
Muscatine,
Iowa
|
630,000
|
Owned
|
Manufacturing
nonwood casegoods and systems office furniture(1)
|
|||
Muscatine,
Iowa
|
237,800
|
Owned
|
Manufacturing
nonwood seating office furniture
|
|||
Orleans,
Indiana
|
1,196,946
|
Owned
|
Manufacturing
wood casegoods and seating office furniture(1)
|
|||
Owensboro,
Kentucky
|
311,575
|
Owned
|
Manufacturing
wood seating office furniture
|
|||
South
Gate, California
|
520,270
|
Owned
|
Manufacturing
nonwood casegoods office furniture (1)
|
|||
Wayland,
New York
|
716,484
|
Owned
|
Manufacturing
wood casegoods and seating office furniture
(1)
|
(1)
|
Also
includes a regional warehouse/distribution
center
|
(2)
|
A
capital lease
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
Name
|
Age
|
Family
Relationship
|
Position
|
Position
Held Since
|
Other
Business Experience During
Past Five Years
|
|||||
Stan
A. Askren
|
46
|
None
|
Chairman
of the Board
Chief
Executive Officer
President
Director
|
2004
2004
2003
2003
|
Executive
Vice President (2001-03); President, (1999-03), Allsteel
Inc.
|
|||||
David
C. Burdakin
|
51
|
None
|
Executive
Vice President
|
2001
|
President,
The HON Company (2000-2006)
|
|||||
Bradley
D. Determan
|
45
|
None
|
Executive
Vice President
President,
Hearth & Home Technologies Inc.
|
2005
2003
|
Senior
Vice President, Operations (1995-2003), Hearth & Home Technologies
Inc.
|
|||||
Jerald
K. Dittmer
|
49
|
None
|
Vice
President and Chief Financial Officer
|
2001
|
||||||
Robert
J. Driessnack
|
48
|
None
|
Vice
President, Controller
|
2004
|
Chief
Financial Officer, Retail Division (2002-04), Corporate Controller
(2000-02), NCR Corporation
|
|||||
Melinda
C. Ellsworth
|
48
|
None
|
Vice
President, Treasurer and Investor Relations
|
2002
|
Vice
President, International Finance & Treasury (1998-02), Sunbeam
Corporation
|
|||||
Tamara
S. Feldman
|
46
|
None
|
Vice
President, Financial Reporting
|
2001
|
||||||
David
W. Gardner
|
47
|
None
|
Vice
President, Lean Enterprise
|
2006
|
Vice
President, Lean Operations Improvement (2005-2006); Vice President,
Operations, The Gunlocke Company LLC (2003-2005)
|
|||||
Robert
D. Hayes
|
63
|
None
|
Vice
President, Business Analysis and General Auditor
|
2001
|
||||||
Douglas
L. Jones
|
48
|
None
|
Vice
President and Chief Information Officer
|
2005
|
Vice
President, Business Systems (2001-2005)
|
|||||
Eric
K. Jungbluth
|
46
|
None
|
President,
The HON Company
Executive
Vice President
|
2006
2005
|
President,
Allsteel Inc. (2003-2006); Vice President, Sales and Marketing (2003),
Allsteel Inc.; Vice President and General Manager, Creative Specialties
(2000-03), Fortune Brands/Moen
|
|||||
Jeffrey
D. Lorenger
|
41
|
None
|
Vice
President, General
Counsel
and Secretary
|
2005
|
Vice
President, Seating (2003-05), Vice President, Marketing (2001-03),
Allsteel Inc.
|
|||||
Marco
V. Molinari
|
47
|
None
|
Executive
Vice President
President,
HNI International Inc.
|
2006
2003
|
President,
International and Business Development (2003-2004); Vice President,
HON
Products, The HON Company (2004-2006); and Chairman and Group MD,
Goodyear-Dunlap, UK (2002)
|
ITEM
5.
|
MARKET
FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY
SECURITIES
|
Period
|
(a) Total
Number of Shares (or Units) Purchased (1)
|
(b)
Average Price Paid per Share or Unit
|
(c)
Total Number of Shares (or Units) Purchased as Part of Publicly Announced
Plans or Programs
|
(d)
Maximum Number (or Approximate Dollar Value) of Shares (or Units)
that May
Yet be Purchased Under the Plans or Programs
|
10/01/06-
10/28/06
|
413,726
|
$42.72
|
413,726
|
$155,504,919
|
10/29/06-
11/25/06
|
348,458
|
$44.95
|
348,458
|
$139,840,212
|
11/26/06-
12/30/06
|
-
|
-
|
-
|
$139,840,212
|
Total
|
762,184
|
$43.74
|
762,184
|
$139,840,212
|
(1)
|
No
shares were purchased outside of a publicly announced plan or
program.
|
·
|
Plan
announced August 8, 2006, providing share repurchase authorization
of
$200,000,000 with no specific expiration
date.
|
·
|
No
repurchase plans expired or were terminated during the fourth quarter,
nor
do any plans exist under which the Corporation does not intend to
make
further purchases.
|
ITEM
6.
|
SELECTED
FINANCIAL DATA — FIVE-YEAR
SUMMARY
|
2006
|
|
2005
|
|
2004
|
|
2003
|
|
2002
|
||||||||
Per
Common Share Data (Basic and Dilutive)
|
||||||||||||||||
Income
from Continuing Operations - basic
|
$
|
2.59
|
$
|
2.53
|
$
|
1.99
|
$
|
1.69
|
$
|
1.55
|
||||||
Income
from Continuing Operations - diluted
|
2.57
|
2.51
|
1.97
|
1.68
|
1.55
|
|||||||||||
Net
Income - basic
|
2.46
|
2.51
|
1.99
|
1.69
|
1.55
|
|||||||||||
Net
Income - diluted
|
2.45
|
2.50
|
1.97
|
1.68
|
1.55
|
|||||||||||
Cash
Dividends
|
.72
|
.62
|
.56
|
.52
|
.50
|
|||||||||||
Book
Value - basic
|
10.35
|
11.46
|
12.10
|
12.19
|
11.08
|
|||||||||||
Net
Working Capital - basic
|
3.04
|
2.48
|
1.96
|
3.71
|
1.82
|
|||||||||||
Operating
Results (Thousands of Dollars)
|
||||||||||||||||
Net
Sales
|
$
|
2,679,803
|
$
|
2,433,316
|
$
|
2,084,435
|
$
|
1,755,728
|
$
|
1,692,622
|
||||||
Gross
Profit as a % of Net Sales
|
34.6
|
%
|
36.3
|
%
|
36.0
|
%
|
36.4
|
%
|
35.4
|
%
|
||||||
Interest
Expense
|
$
|
14,323
|
$
|
2,355
|
$
|
886
|
$
|
2,970
|
$
|
4,714
|
||||||
Income
from Continuing Operations
|
129,672
|
138,166
|
113,660
|
98,105
|
91,360
|
|||||||||||
Income
from Continuing Operations as a % of Net Sales
|
4.8
|
%
|
5.7
|
%
|
5.5
|
%
|
5.6
|
%
|
5.4
|
%
|
||||||
Loss
from Discontinued Operations(a)
|
$
|
(6,297
|
)
|
$
|
(746
|
)
|
$
|
(78
|
)
|
-
|
-
|
|||||
Net
Income
|
123,375
|
137,420
|
113,582
|
98,105
|
91,360
|
|||||||||||
Net
Income as a % of Net Sales
|
4.6
|
%
|
5.6
|
%
|
5.4
|
%
|
5.6
|
%
|
5.4
|
%
|
||||||
Cash
Dividends
|
$
|
36,028
|
$
|
33,841
|
$
|
32,023
|
$
|
30,299
|
$
|
29,386
|
||||||
%
Return on Average Shareholders’ Equity
|
22.6
|
%
|
21.8
|
%
|
16.5
|
%
|
14.5
|
%
|
14.7
|
%
|
||||||
Depreciation
and Amortization
|
$
|
69,503
|
$
|
65,514
|
$
|
66,703
|
$
|
72,772
|
$
|
68,755
|
||||||
Distribution
of Net Income
|
||||||||||||||||
%
Paid to Shareholders
|
29.2
|
%
|
24.6
|
%
|
28.2
|
%
|
30.9
|
%
|
32.2
|
%
|
||||||
%
Reinvested in Business
|
70.8
|
%
|
75.4
|
%
|
71.8
|
%
|
69.1
|
%
|
67.8
|
%
|
||||||
Financial
Position (Thousands of Dollars)
|
||||||||||||||||
Current
Assets
|
$
|
504,174
|
$
|
486,598
|
$
|
374,579
|
$
|
462,122
|
$
|
405,054
|
||||||
Current
Liabilities
|
358,542
|
358,174
|
266,250
|
245,816
|
298,680
|
|||||||||||
Working
Capital
|
145,632
|
128,424
|
108,329
|
216,306
|
106,374
|
|||||||||||
Current
Ratio
|
1.41
|
1.36
|
1.41
|
1.88
|
1.36
|
|||||||||||
Total
Assets
|
$
|
1,226,359
|
$
|
1,140,271
|
$
|
1,021,657
|
$
|
1,021,826
|
$
|
1,020,552
|
||||||
%
Return on Beginning Assets Employed
|
18.1
|
%
|
21.2
|
%
|
17.5
|
%
|
14.7
|
%
|
14.8
|
%
|
||||||
Long-Term
Debt and Capital Lease Obligations
|
$
|
285,974
|
$
|
103,869
|
$
|
3,645
|
$
|
4,126
|
$
|
9,837
|
||||||
Shareholders’
Equity
|
495,919
|
593,944
|
669,163
|
709,889
|
646,893
|
|||||||||||
Current
Share Data
|
||||||||||||||||
Number
of Shares Outstanding at Year-End
|
47,905,351
|
51,848,591
|
55,303,323
|
58,238,519
|
58,373,607
|
|||||||||||
Weighted-Average
Shares Outstanding During Year - basic
|
50,059,443
|
54,649,199
|
57,127,110
|
58,178,739
|
58,789,851
|
|||||||||||
Weighted-Average
Shares Outstanding During Year - diluted
|
50,374,758
|
55,033,741
|
57,577,630
|
58,545,353
|
59,021,071
|
|||||||||||
Number
of Shareholders of Record at Year-End
|
7,475
|
6,702
|
6,465
|
6,416
|
6,777
|
|||||||||||
Other
Operational Data
|
||||||||||||||||
Capital
Expenditures (Thousands of Dollars)
|
$
|
58,921
|
$
|
38,912
|
$
|
32,417
|
$
|
34,842
|
$
|
25,885
|
||||||
Members
(Employees) at Year-End
|
14,170
|
(b)
|
12,504
|
(b)
|
10,589
|
(b)
|
8,926
|
8,828
|
(a)
|
Component
reported as discontinued operations acquired in
2004.
|
(b)
|
Includes
acquisitions completed during the fiscal
year.
|
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Fiscal
|
2006
|
2005
|
2004
|
|||||||
Net
Sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||
Cost
of products sold
|
65.4
|
63.7
|
64.0
|
|||||||
Gross
profit
|
34.6
|
36.3
|
36.0
|
|||||||
Selling
and administrative expenses
|
26.8
|
27.3
|
27.4
|
|||||||
Restructuring
related charges
|
0.1
|
0.1
|
0.0
|
|||||||
Operating
income
|
7.7
|
8.9
|
8.6
|
|||||||
Interest
income (expense) net
|
(0.5
|
)
|
0.0
|
0.0
|
||||||
Earnings
from continuing operations before income taxes and minority
interest
|
7.2
|
8.9
|
8.6
|
|||||||
Income
taxes
|
2.4
|
3.2
|
3.1
|
|||||||
Minority
interest in earnings of subsidiary
|
0.0
|
0.0
|
0.0
|
|||||||
Income
from continuing operations
|
4.8
|
%
|
5.7
|
%
|
5.5
|
%
|
Payments
Due by Period
|
||||||||||||||||
(In
thousands)
|
Total
|
|
Less
than 1
Year
|
|
1
-
3
Years
|
|
3
-
5
Years
|
|
More
than
5
Years
|
|||||||
Long-term
debt obligations, including estimated interest (1)
|
$
|
422,838
|
$
|
31,669
|
$
|
33,221
|
$
|
25,644
|
$
|
332,304
|
||||||
Capital
lease obligations
|
1,012
|
211
|
422
|
379
|
-
|
|||||||||||
Operating
lease obligations
|
141,293
|
31,001
|
52,210
|
38,680
|
19,402
|
|||||||||||
Purchase
obligations (2)
|
89,518
|
89,518
|
-
|
-
|
-
|
|||||||||||
Other
long-term obligations (3)
|
38,385
|
4,445
|
2,982
|
586
|
30,372
|
|||||||||||
Total
|
$
|
693,046
|
$
|
156,844
|
$
|
88,835
|
$
|
65,289
|
$
|
382,078
|
(1)
|
The
$144 million in borrowings outstanding under the revolving credit
facility
at December 30, 2006 are due in 2011; however, $11 million is included
in
current liabilities in the consolidated financial statements based
on
management’s intent to repay the $11 million during fiscal 2007. Assuming
the amount is repaid in 2007, interest obligation amounts included
in this
table would be reduced by approximately $1.3 million in the 1-3 year
category and $0.7 million in the 3-5 year category. Interest has
been
included for all debt at either the fixed rate or variable rate in
effect
as of December 30, 2006, as
applicable.
|
(2)
|
Purchase
obligations include agreements to purchase goods or services that
are
enforceable, legally binding, and specify all significant terms,
including
the quantity to be purchased, the price to be paid, and the timing
of the
purchase.
|
(3)
|
Other
long-term liabilities represent payments due to members who are
participants in the Corporation’s salary deferral and long-term incentive
compensation programs, mandatory purchases of the remaining unowned
interest in four acquisitions, and contribution and benefit payments
expected to be made for our post-retirement benefit plans. It should
be
noted that the obligations related to post-retirement benefit plans
are
not contractual and the plans could be amended at the discretion
of the
Corporation. The disclosure of contributions and benefit payments
has been
limited to 10 years, as information beyond this time period was not
available.
|
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY
DATA
|
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM
9A.
|
CONTROLS
AND PROCEDURES
|
ITEM
9B.
|
OTHER
INFORMATION
|
ITEM
10.
|
DIRECTORS,
EXECUTIVE OFFICERS, AND CORPORATE
GOVERNANCE
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
|
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND
SERVICES
|
ITEM
15.
|
EXHIBITS,
FINANCIAL STATEMENT
SCHEDULES
|
(a)
|
(1)
|
Financial
Statements
|
Page
|
|
38
|
|
39
|
|
41
|
|
42
|
|
43
|
|
44
|
|
45
|
|
73
|
(2)
|
Financial
Statement Schedules
|
(b)
|
Exhibits
|
(21)
|
Subsidiaries
of the Registrant
|
(23)
|
Consent
of Independent Registered Public Accounting
Firm
|
(31.1)
|
Certification
of the CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
(31.2)
|
Certification
of the CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
(32.1)
|
Certification
of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002
|
HNI
Corporation
|
||||
Date:
|
February 26, 2007 |
By:
|
/s/
Stan A. Askren
|
|
Stan
A. Askren
|
||||
Chairman,
President and CEO
|
Signature
|
Title
|
Date
|
||
/s/
Stan A. Askren
|
Chairman,
President and CEO,
|
February 26, 2007 | ||
Stan
A. Askren
|
Principal
Executive Officer,
|
|||
and
Director
|
||||
/s/
Jerald K. Dittmer
|
Vice
President, Chief Financial
|
February 26, 2007 | ||
Jerald
K. Dittmer
|
Officer
and Principal Accounting Officer
|
|||
/s/
Mary H. Bell
|
Director
|
February 26, 2007 | ||
Mary
H. Bell
|
||||
/s/
Miguel M. Calado
|
Director
|
February 26, 2007 | ||
Miguel
M. Calado
|
||||
/s/
Gary M. Christensen
|
Director
|
February 26, 2007 | ||
Gary
M. Christensen
|
||||
/s/
Cheryl A. Francis
|
Director
|
February 26, 2007 | ||
Cheryl
A. Francis
|
||||
/s/
John A. Halbrook
|
Director
|
February 26, 2007 | ||
John
A. Halbrook
|
||||
/s/
James R. Jenkins
|
Director
|
February 26, 2007 | ||
James
R. Jenkins
|
||||
/s/
Dennis J. Martin
|
Director
|
February 26, 2007 | ||
Dennis
J. Martin
|
Signature
|
Title
|
Date
|
||
/s/
Larry B. Porcellato
|
Director
|
February 26, 2007 | ||
Larry
B. Porcellato
|
||||
/s/
Joseph Scalzo
|
Director
|
February 26, 2007 | ||
Joseph
Scalzo
|
||||
/s/
Abbie J. Smith
|
Director
|
February 26, 2007 | ||
Abbie
J. Smith
|
||||
/s/
Brian E. Stern
|
Director
|
February 26, 2007 | ||
Brian
E. Stern
|
||||
/s/
Ronald V. Waters, III
|
Director
|
February 26, 2007 | ||
Ronald
V. Waters, III
|
·
|
pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect the transactions and dispositions of the assets of
HNI
Corporation;
|
·
|
provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America, and
that
receipts and expenditures of HNI Corporation are being made only
in
accordance with authorizations of management and directors of HNI
Corporation; and
|
·
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of assets that could
have a
material effect on the consolidated financial
statements.
|
(Amounts
in thousands, except for per share data)
|
||||||||||
For
the Years
|
2006
|
|
2005
|
|
2004
|
|||||
Net
sales
|
$
|
2,679,803
|
$
|
2,433,316
|
$
|
2,084,435
|
||||
Cost
of products sold
|
1,752,882
|
1,549,475
|
1,334,777
|
|||||||
Gross
profit
|
926,921
|
883,841
|
749,658
|
|||||||
Selling
and administrative expenses
|
717,676
|
663,667
|
570,237
|
|||||||
Restructuring
related charges
|
2,829
|
3,462
|
886
|
|||||||
Operating
income
|
206,416
|
216,712
|
178,535
|
|||||||
Interest
income
|
1,139
|
1,518
|
1,343
|
|||||||
Interest
expense
|
14,323
|
2,355
|
886
|
|||||||
Earnings
from continuing operations before income taxes and minority
interest
|
193,232
|
215,875
|
178,992
|
|||||||
Income
taxes
|
63,670
|
77,715
|
65,332
|
|||||||
Earnings
from continuing operations before minority interest
|
129,562
|
138,160
|
113,660
|
|||||||
Minority
interest in earnings of subsidiary
|
(110
|
)
|
(6
|
)
|
-
|
|||||
Income
from continuing operations
|
129,672
|
138,166
|
113,660
|
|||||||
Loss
from discontinued operations, net of income tax benefit
|
(6,297
|
)
|
(746
|
)
|
(78
|
)
|
||||
Net
income
|
$
|
123,375
|
$
|
137,420
|
$
|
113,582
|
||||
Net
income from continuing operations - basic
|
$
|
2.59
|
$
|
2.53
|
$
|
1.99
|
||||
Net loss
from discontinued operations - basic
|
(0.13
|
)
|
(0.02
|
)
|
(0.00
|
)
|
||||
Net
income per common share - basic
|
$
|
2.46
|
$
|
2.51
|
$
|
1.99
|
||||
Weighted
average shares outstanding - basic
|
50,059,443
|
54,649,199
|
57,127,110
|
|||||||
Net
income from continuing operations - diluted
|
$
|
2.57
|
$
|
2.51
|
$
|
1.97
|
||||
Net loss
from discontinued operations - diluted
|
(0.12
|
)
|
(0.01
|
)
|
(0.00
|
)
|
||||
Net
income per common share - diluted
|
$
|
2.45
|
$
|
2.50
|
$
|
1.97
|
||||
Weighted
average shares outstanding - diluted
|
50,374,758
|
55,033,741
|
57,577,630
|
As
of Year-end
|
2006
|
|
2005
|
|
2004
|
|||||
Assets
|
||||||||||
Current
Assets
|
||||||||||
Cash
and cash equivalents
|
$
|
28,077
|
$
|
75,707
|
$
|
29,676
|
||||
Short-term
investments
|
9,174
|
9,035
|
6,836
|
|||||||
Receivables
|
316,568
|
278,515
|
234,731
|
|||||||
Inventories
|
105,765
|
91,110
|
77,590
|
|||||||
Deferred
income taxes
|
15,440
|
15,831
|
14,639
|
|||||||
Prepaid
expenses and other current assets
|
29,150
|
16,400
|
11,107
|
|||||||
Total
Current Assets
|
504,174
|
486,598
|
374,579
|
|||||||
Property,
Plant, and Equipment
|
309,952
|
294,660
|
311,344
|
|||||||
Goodwill
|
251,761
|
242,244
|
224,554
|
|||||||
Other
Assets
|
160,472
|
116,769
|
111,180
|
|||||||
Total
Assets
|
$
|
1,226,359
|
$
|
1,140,271
|
$
|
1,021,657
|
||||
Liabilities
and Shareholders’ Equity
|
||||||||||
Current
Liabilities
|
||||||||||
Accounts
payable and accrued expenses
|
$
|
328,882
|
$
|
309,222
|
$
|
260,762
|
||||
Note
payable and current maturities of long-term debt and capital lease
obligations
|
26,135
|
40,350
|
646
|
|||||||
Current
maturities of other long-term obligations
|
3,525
|
8,602
|
4,842
|
|||||||
Total
Current Liabilities
|
358,542
|
358,174
|
266,250
|
|||||||
Long-Term
Debt
|
285,300
|
103,050
|
2,627
|
|||||||
Capital
Lease Obligations
|
674
|
819
|
1,018
|
|||||||
Other
Long-Term Liabilities
|
56,103
|
48,671
|
40,045
|
|||||||
Deferred
Income Taxes
|
29,321
|
35,473
|
42,554
|
|||||||
Minority
Interest in Subsidiaries
|
500
|
140
|
-
|
|||||||
Commitments
and Contingencies
|
||||||||||
Shareholders’
Equity
|
||||||||||
Preferred
stock - $1 par value
|
-
|
-
|
-
|
|||||||
Authorized:
2,000
|
||||||||||
Issued:
None
|
||||||||||
Common
stock - $1 par value
|
47,906
|
51,849
|
55,303
|
|||||||
Authorized:
200,000
|
||||||||||
Issued
and outstanding: 2006-47,906; 2005-51,849; 2004-55,303
|
||||||||||
Additional
paid-in capital
|
2,807
|
941
|
6,879
|
|||||||
Retained
earnings
|
448,268
|
540,822
|
606,632
|
|||||||
Accumulated
other comprehensive (loss) income
|
(3,062
|
)
|
332
|
349
|
||||||
Total
Shareholders’ Equity
|
495,919
|
593,944
|
669,163
|
|||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
1,226,359
|
$
|
1,140,271
|
$
|
1,021,657
|
|
Common
Stock
|
|
Additional
Paid-in Capital
|
|
Retained
Earnings
|
|
Accumulated
Other Comprehensive (Loss)/Income
|
|
Total
Shareholders’ Equity
|
|||||||
Balance,
January 3, 2004
|
$
|
58,239
|
$
|
10,324
|
$
|
641,732
|
$
|
(406
|
)
|
$
|
709,889
|
|||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
113,582
|
113,582
|
||||||||||||||
Other
comprehensive income
|
755
|
755
|
||||||||||||||
Comprehensive
income
|
114,337
|
|||||||||||||||
Cash
dividends
|
(32,023
|
)
|
(32,023
|
)
|
||||||||||||
Common
shares - treasury:
|
||||||||||||||||
Shares
purchased
|
(3,642
|
)
|
(25,303
|
)
|
(116,659
|
)
|
(145,604
|
)
|
||||||||
Shares
issued under Members’ Stock Purchase Plan and stock awards
|
706
|
21,858
|
22,564
|
|||||||||||||
Balance,
January 1, 2005
|
55,303
|
6,879
|
606,632
|
349
|
669,163
|
|||||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
137,420
|
137,420
|
||||||||||||||
Other
comprehensive loss
|
(17
|
)
|
(17
|
)
|
||||||||||||
Comprehensive
income
|
137,403
|
|||||||||||||||
Cash
dividends
|
(33,841
|
)
|
(33,841
|
)
|
||||||||||||
Common
shares - treasury:
|
||||||||||||||||
Shares
purchased
|
(4,059
|
)
|
(28,769
|
)
|
(169,389
|
)
|
(202,217
|
)
|
||||||||
Shares
issued under Members’ Stock Purchase Plan and stock awards
|
605
|
22,831
|
23,436
|
|||||||||||||
Balance,
December 31, 2005
|
51,849
|
941
|
540,822
|
332
|
593,944
|
|||||||||||
Comprehensive
income:
|
||||||||||||||||
Net
income
|
123,375
|
123,375
|
||||||||||||||
Other
comprehensive income
|
1,168
|
1,168
|
||||||||||||||
Comprehensive
income
|
124,543
|
|||||||||||||||
Adoption
of FAS158 impact
|
(4,562
|
)
|
(4,562
|
)
|
||||||||||||
Cash
dividends
|
(36,028
|
)
|
(36,028
|
)
|
||||||||||||
Common
shares - treasury:
|
||||||||||||||||
Shares
purchased
|
(4,337
|
)
|
(19,408
|
)
|
(179,901
|
)
|
(203,646
|
)
|
||||||||
Shares
issued under Member’s Stock Purchase Plan and stock awards
|
394
|
21,274
|
21,668
|
|||||||||||||
Balance,
December 30, 2006
|
$
|
47,906
|
$
|
2,807
|
$
|
448,268
|
$
|
(3,062
|
)
|
$
|
495,919
|
For
the Years
|
2006
|
|
2005
|
|
2004
|
|||||
Net
Cash Flows From (To) Operating Activities:
|
||||||||||
Net
income
|
$
|
123,375
|
$
|
137,420
|
$
|
113,582
|
||||
Noncash
items included in net income:
|
||||||||||
Depreciation
and amortization
|
69,503
|
65,514
|
66,703
|
|||||||
Other
postretirement and post-employment benefits
|
2,109
|
2,002
|
1,874
|
|||||||
Stock-based
compensation
|
3,219 | - | - | |||||||
Excess
tax benefits from stock compensation
|
(865
|
)
|
-
|
-
|
||||||
Deferred
income taxes
|
(3,712
|
)
|
(8,933
|
)
|
708
|
|||||
Loss
on sales, retirements and impairments of long-lived assets and
intangibles
|
4,639
|
1,529
|
1,394
|
|||||||
Stock
issued to retirement plan
|
7,948
|
6,199
|
5,990
|
|||||||
Other
- net
|
1,733
|
1,164
|
1,947
|
|||||||
Changes
in working capital, excluding acquisition and disposition:
|
||||||||||
Receivables
|
(24,059
|
)
|
(25,654
|
)
|
(26,960
|
)
|
||||
Inventories
|
(7,123
|
)
|
(10,488
|
)
|
(9,409
|
)
|
||||
Prepaid
expenses and other current assets
|
(9,541
|
)
|
(4,207
|
)
|
(145
|
)
|
||||
Accounts
payable and accrued expenses
|
(2,794
|
)
|
36,809
|
25,990
|
||||||
Income
taxes
|
(2,088
|
)
|
(5,534
|
)
|
846
|
|||||
Increase
(decrease) in other liabilities
|
(2,742
|
)
|
5,188
|
11,736
|
||||||
Net
cash flows from (to) operating activities
|
159,602
|
201,009
|
194,256
|
|||||||
Net
Cash Flows From (To) Investing Activities:
|
||||||||||
Capital
expenditures
|
(58,921
|
)
|
(38,912
|
)
|
(32,417
|
)
|
||||
Proceeds
from sale of property, plant and equipment
|
5,952
|
317
|
2,968
|
|||||||
Capitalized
software
|
(1,003
|
)
|
(2,890
|
)
|
(3,383
|
)
|
||||
Acquisition
spending, net of cash acquired
|
(78,569
|
)
|
(33,804
|
)
|
(134,848
|
)
|
||||
Short-term
investments - net
|
926
|
2,400
|
60,949
|
|||||||
Purchase
of long-term investments
|
(13,600
|
)
|
(34,495
|
)
|
(24,496
|
)
|
||||
Sales
or maturities of long-term investments
|
8,250
|
32,505
|
16,858
|
|||||||
Other
- net
|
-
|
(68
|
)
|
(350
|
)
|
|||||
Net
cash flows from (to) investing activities
|
(136,965
|
)
|
(74,947
|
)
|
(114,719
|
)
|
||||
Net
Cash Flows From (To) Financing Activities:
|
||||||||||
Purchase
of HNI Corporation common stock
|
(203,646
|
)
|
(202,217
|
)
|
(145,604
|
)
|
||||
Proceeds
from long-term debt
|
515,157
|
199,000
|
-
|
|||||||
Payments
of note and long-term debt and other financing
|
(352,401
|
)
|
(57,970
|
)
|
(26,795
|
)
|
||||
Proceeds
from sale of HNI Corporation common stock
|
5,786
|
14,997
|
15,579
|
|||||||
Excess
tax benefits from stock compensation
|
865
|
-
|
-
|
|||||||
Dividends
paid
|
(36,028
|
)
|
(33,841
|
)
|
(32,023
|
)
|
||||
Net
cash flows from (to) financing activities
|
(70,267
|
)
|
(80,031
|
)
|
(188,843
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
(47,630
|
)
|
46,031
|
(109,306
|
)
|
|||||
Cash
and cash equivalents at beginning of year
|
75,707
|
29,676
|
138,982
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
28,077
|
$
|
75,707
|
$
|
29,676
|
||||
Supplemental
Disclosures of Cash Flow Information:
|
||||||||||
Cash
paid during the year for:
|
||||||||||
Interest
|
$
|
12,002
|
$
|
1,961
|
$
|
883
|
||||
Income
taxes
|
$
|
75,266
|
$
|
88,133
|
$
|
59,938
|
Year-End
2006
(In
thousands)
|
Cash
and cash equivalents
|
Short-term
investments
|
Long-term
investments
|
|||||||
Held-to-maturity
securities
|
||||||||||
Certificates
of deposit
|
$
|
-
|
$
|
-
|
$
|
400
|
||||
Investment
in master fund
|
-
|
9,174
|
25,589
|
|||||||
Cash
and money market accounts
|
28,077
|
-
|
-
|
|||||||
Total
|
$
|
28,077
|
$
|
9,174
|
$
|
25,989
|
Year-End
2005
(In
thousands)
|
Cash
and cash equivalents
|
Short-term
investments
|
Long-term
investments
|
|||||||
Held-to-maturity
securities
|
||||||||||
Certificates
of deposit
|
$
|
-
|
$
|
-
|
$
|
400
|
||||
Investment
in master fund
|
-
|
9,035
|
19,085
|
|||||||
Cash
and money market accounts
|
75,707
|
-
|
-
|
|||||||
Total
|
$
|
75,707
|
$
|
9,035
|
$
|
19,485
|
Year-End
2004
(In
thousands)
|
Cash
and cash equivalents
|
Short-term
investments
|
Long-term
investments
|
|||||||
Held-to-maturity
securities
|
||||||||||
Municipal
bonds
|
$
|
-
|
$
|
2,400
|
$
|
-
|
||||
Certificates
of deposit
|
-
|
-
|
400
|
|||||||
Investment
in master fund
|
-
|
4,436
|
20,187
|
|||||||
Cash
and money market accounts
|
29,676
|
-
|
-
|
|||||||
Total
|
$
|
29,676
|
$
|
6,836
|
$
|
20,587
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|
||||
Balance
at the beginning of the period
|
$
|
10,157
|
$
|
10,794
|
$
|
8,926
|
||||
Accrual
assumed from acquisition
|
125
|
-
|
688
|
|||||||
Accruals
for warranties issued during the period
|
12,273
|
9,809
|
10,486
|
|||||||
Accrual
related to pre-existing warranties
|
810
|
1,449
|
1,054
|
|||||||
Settlements
made during the period
|
(12,741
|
)
|
(11,895
|
)
|
(10,360
|
)
|
||||
Balance
at the end of the period
|
$
|
10,624
|
$
|
10,157
|
$
|
10,794
|
(In
thousands)
|
Severance
Costs
|
Facility
Termination & Other Costs
|
Total
|
|||||||
Restructuring
reserve at January 3, 2004
|
$
|
334
|
$
|
1,100
|
$
|
1,434
|
||||
Restructuring
charges
|
42
|
1,147
|
1,189
|
|||||||
Restructuring
credit
|
(31
|
)
|
(272
|
)
|
(303
|
)
|
||||
Cash
payments
|
(345
|
)
|
(1,975
|
)
|
(2,320
|
)
|
||||
Restructuring
reserve at January 1, 2005
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Restructuring
charges
|
1,142
|
1,876
|
3,018
|
|||||||
Cash
payments
|
(325
|
)
|
(632
|
)
|
(957
|
)
|
||||
Restructuring reserve
at December 31, 2005
|
$
|
817
|
$
|
1,244
|
$
|
2,061
|
||||
Restructuring
charges
|
865
|
1,964
|
2,829
|
|||||||
Cash
payments
|
(841
|
)
|
(3,208
|
)
|
(4,049
|
)
|
||||
Restructuring
reserve at December 30, 2006
|
$
|
841
|
$
|
-
|
$
|
841
|
(in
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Discontinued
Operations:
|
||||||||||
Operating
loss before tax
|
$
|
(818
|
)
|
$
|
(666
|
)
|
$
|
(123
|
)
|
|
Benefit
for income tax
|
(294
|
)
|
(240
|
)
|
(45
|
)
|
||||
Net
loss from discontinued operations
|
(524
|
)
|
(426
|
)
|
(78
|
)
|
||||
Impairment
Loss on Discontinued Operations:
|
||||||||||
Impairment
loss on discontinued operations before tax
|
(7,125
|
)
|
(500
|
)
|
-
|
|||||
Benefit
for income tax
|
(1,352
|
)
|
(180
|
)
|
-
|
|||||
Net
impairment loss on discontinued operations
|
(5,773
|
)
|
(320
|
)
|
-
|
|||||
Loss
from discontinued operations, net of income tax benefit
|
$
|
(6,297
|
)
|
$
|
(746
|
)
|
$
|
(78
|
)
|
(In
thousands)
|
2006
|
|||
Inventory
|
$
|
1,030
|
||
Property
and equipment
|
720
|
|||
Total
Assets Held for Sale
|
$
|
1,750
|
Inventories
|
||||||||||
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Finished
products
|
$
|
66,238
|
$
|
61,027
|
$
|
52,796
|
||||
Materials
and work in process
|
58,789
|
46,398
|
40,712
|
|||||||
LIFO
reserve
|
(19,262
|
)
|
(16,315
|
)
|
(15,918
|
)
|
||||
$
|
105,765
|
$
|
91,110
|
$
|
77,590
|
Property,
Plant, and Equipment
|
||||||||||
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Land
and land improvements
|
$
|
27,700
|
$
|
26,361
|
$
|
26,042
|
||||
Buildings
|
266,801
|
240,174
|
234,421
|
|||||||
Machinery
and equipment
|
550,979
|
523,240
|
512,544
|
|||||||
Construction
and equipment installation in progress
|
12,936
|
23,976
|
13,686
|
|||||||
858,416
|
813,751
|
786,693
|
||||||||
Less:
accumulated depreciation
|
548,464
|
519,091
|
475,349
|
|||||||
$
|
309,952
|
$
|
294,660
|
$
|
311,344
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Patents
|
$
|
18,780
|
$
|
18,480
|
$
|
18,820
|
||||
Customer
lists and other
|
103,492
|
67,211
|
54,702
|
|||||||
Less:
accumulated amortization
|
39,796
|
28,758
|
21,785
|
|||||||
Net
intangible assets
|
$
|
82,476
|
$
|
56,933
|
$
|
51,737
|
(In
thousands)
|
Office
Furniture
|
Hearth
Products
|
Total
|
|||||||
Balance
as of January 3, 2004
|
$
|
43,611
|
$
|
148,475
|
$
|
192,086
|
||||
Goodwill
increase during period
|
21,920
|
10,548
|
32,468
|
|||||||
Balance
as of January 1, 2005
|
$
|
65,531
|
$
|
159,023
|
$
|
224,554
|
||||
Goodwill
increase during period
|
12,128
|
5,562
|
17,690
|
|||||||
Balance
as of December 31, 2005
|
$
|
77,659
|
$
|
164,585
|
$
|
242,244
|
||||
Goodwill
increase during period
|
12,810
|
2,790
|
15,600
|
|||||||
Goodwill
decrease during period
|
(5,654
|
)
|
(429
|
)
|
(6,083
|
)
|
||||
Balance
as of December 30, 2006
|
$
|
84,815
|
$
|
166,946
|
$
|
251,761
|
Accounts
Payable and Accrued Expenses
|
||||||||||
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Trade
accounts payable
|
$
|
102,436
|
$
|
86,945
|
$
|
64,319
|
||||
Compensation
|
27,835
|
34,272
|
25,722
|
|||||||
Profit
sharing and retirement expense
|
29,545
|
32,461
|
30,516
|
|||||||
Marketing
expenses
|
60,676
|
54,797
|
50,939
|
|||||||
Other
accrued expenses
|
108,390
|
100,747
|
89,266
|
|||||||
$
|
328,882
|
$
|
309,222
|
$
|
260,762
|
Long-Term
Debt
|
||||||||||
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Note
payable to bank, revolving credit agreement with interest at a variable
rate (2006-5.70%; 2005-4.69%)
|
$
|
144,000
|
$
|
140,000
|
$
|
-
|
||||
Note
payable to bank, with interest at a variable rate
(2006-6.11%)
|
14,200
|
-
|
-
|
|||||||
Senior
notes due in 2016 with interest at a fixed rate of 5.54% per
annum.
|
150,000
|
-
|
-
|
|||||||
Industrial
development revenue bonds, payable 2018 with interest at 4.02% per
annum
|
2,300
|
2,300
|
2,300
|
|||||||
Other
notes and amounts
|
794
|
900
|
560
|
|||||||
Total
debt
|
311,294
|
143,200
|
2,860
|
|||||||
Less:
current portion
|
25,994
|
40,150
|
233
|
|||||||
Long-term
debt
|
$
|
285,300
|
$
|
103,050
|
$
|
2,627
|
Aggregate
maturities of long-term debt are as follows:
|
||||
(In
thousands)
|
||||
2007
|
$
|
25,994
|
||
2008
|
-
|
|||
2009
|
-
|
|||
2010
|
-
|
|||
2011
|
133,000
|
|||
Thereafter
|
$
|
152,300
|
Selling
and Administrative Expenses
|
||||||||||
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Freight
expense for shipments to customers
|
$
|
182,814
|
$
|
158,329
|
$
|
132,498
|
||||
Amortization
of intangible and other assets
|
12,456
|
10,155
|
8,275
|
|||||||
Product
development costs
|
27,567
|
27,338
|
27,401
|
|||||||
Other
selling and administrative expenses
|
494,839
|
467,845
|
402,063
|
|||||||
$
|
717,676
|
$
|
663,667
|
$
|
570,237
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Current:
|
||||||||||
Federal
|
$
|
61,943
|
$
|
77,474
|
$
|
60,425
|
||||
State
|
8,671
|
8,954
|
5,976
|
|||||||
Current
provision
|
70,614
|
86,428
|
66,401
|
|||||||
Deferred:
|
||||||||||
Federal
|
(7,877
|
)
|
(8,048
|
)
|
(1,008
|
)
|
||||
State
|
(651
|
)
|
(1,081
|
)
|
(106
|
)
|
||||
Deferred
provision
|
(8,528
|
)
|
(9,129
|
)
|
(1,114
|
)
|
||||
$
|
62,086
|
$
|
77,299
|
$
|
65,287
|
2006
|
|
2005
|
|
2004
|
||||||
Federal
statutory tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||
State
taxes, net of federal tax effect
|
2.8
|
2.4
|
2.2
|
|||||||
Credit
for increasing research activities
|
(0.7
|
)
|
(0.4
|
)
|
(0.6
|
)
|
||||
Deduction
related to domestic production activities
|
(0.8
|
)
|
(0.9
|
)
|
-
|
|||||
Extraterritorial
income exclusion
|
(0.4
|
)
|
(0.3
|
)
|
(0.3
|
)
|
||||
True-up
of deferred tax items
|
(2.1
|
)
|
-
|
-
|
||||||
Other
- net
|
(0.8
|
)
|
0.2
|
0.2
|
||||||
Effective
tax rate
|
33.0
|
%
|
36.0
|
%
|
36.5
|
%
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Net
long-term deferred tax liabilities:
|
||||||||||
Tax
over book depreciation
|
$
|
(1,052
|
)
|
$
|
(16,458
|
)
|
$
|
(25,549
|
)
|
|
Compensation
|
4,899
|
5,907
|
5,697
|
|||||||
Goodwill
|
(33,826
|
)
|
(30,499
|
)
|
(24,362
|
)
|
||||
Other
- net
|
658
|
5,577
|
1,660
|
|||||||
Total
net long-term deferred tax liabilities
|
(29,321
|
)
|
(35,473
|
)
|
(42,554
|
)
|
||||
Net
current deferred tax assets:
|
||||||||||
Allowance
for doubtful accounts
|
3,563
|
3,858
|
3,512
|
|||||||
Vacation
accrual
|
5,323
|
4,924
|
4,588
|
|||||||
Inventory
differences
|
3,096
|
5,720
|
4,304
|
|||||||
Deferred
income
|
(5,880
|
)
|
(6,596
|
)
|
(6,238
|
)
|
||||
Warranty
accruals
|
3,906
|
3,847
|
3,504
|
|||||||
Other
- net
|
5,432
|
4,078
|
4,969
|
|||||||
Total
net current deferred tax assets
|
15,440
|
15,831
|
14,639
|
|||||||
Net
deferred tax (liabilities) assets
|
$
|
(13,881
|
)
|
$
|
(19,642
|
)
|
$
|
(27,915
|
)
|
2006
|
|
2005
|
|
2004
|
||||||
Common
Stock, $1 Par Value
|
||||||||||
Authorized
|
200,000,000
|
200,000,000
|
200,000,000
|
|||||||
Issued
and outstanding
|
47,905,351
|
51,848,591
|
55,303,323
|
|||||||
Preferred
Stock, $1 Par Value
|
||||||||||
Authorized
|
2,000,000
|
2,000,000
|
2,000,000
|
|||||||
Issued
and outstanding
|
-
|
-
|
-
|
(In
thousands, except per share data)
|
2006
|
|
2005
|
|
2004
|
|||||
Numerators:
|
||||||||||
Numerators
for both basic and diluted EPS net income
|
$
|
123,375
|
$
|
137,420
|
$
|
113,582
|
||||
Denominators:
|
||||||||||
Denominator
for basic EPS weighted- average common shares outstanding
|
50,059
|
54,649
|
57,127
|
|||||||
Potentially
dilutive shares from stock option plans
|
316
|
385
|
451
|
|||||||
Denominator
for diluted EPS
|
50,375
|
55,034
|
57,578
|
|||||||
Earnings
per share - basic
|
$
|
2.46
|
$
|
2.51
|
$
|
1.99
|
||||
Earnings
per share - diluted
|
$
|
2.45
|
$
|
2.50
|
$
|
1.97
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Balance
at beginning of period
|
$
|
332
|
$
|
349
|
$
|
(406
|
)
|
|||
Foreign
currency translation adjustments - net of tax
|
631
|
293
|
348
|
|||||||
Change
in unrealized gains (losses) on marketable securities - net of
tax
|
-
|
-
|
407
|
|||||||
Change
in minimum pension liability - net of tax
|
537
|
(310
|
)
|
-
|
||||||
Adjustment
to initially apply FASB 158, net of tax
|
(4,562
|
)
|
-
|
-
|
||||||
Balance
at end of period
|
$
|
(3,062
|
)
|
$
|
332
|
$
|
349
|
(In
dollars)
|
2006
|
|
2005
|
|
2004
|
|||||
Common
shares
|
$
|
.72
|
$
|
.62
|
$
|
.56
|
(In
millions, except for per share data)
|
2005
|
|
2004
|
||||
Net
income, as reported
|
$
|
137.4
|
$
|
113.6
|
|||
Deduct:
Total stock-based employee compensation expense determined under
fair
value based method for all awards, net of related tax
effects
|
1.8
|
5.0
|
|||||
Pro
forma net income
|
$
|
135.6
|
$
|
108.6
|
|||
Earnings
per share:
|
|||||||
Basic
- as reported
|
$
|
2.51
|
$
|
1.99
|
|||
Basic
- pro forma
|
$
|
2.48
|
$
|
1.90
|
|||
Diluted
- as reported
|
$
|
2.50
|
$
|
1.97
|
|||
Diluted
- pro forma
|
$
|
2.47
|
$
|
1.89
|
Year
Ended
Dec.
30, 2006
|
Year
Ended
Dec.
31, 2005
|
Year
Ended
Jan.
1, 2005
|
|
Expected
term
|
7
years
|
7
years
|
7
years
|
Expected
volatility:
|
|||
Range
used
|
29.75%
- 31.23%
|
31.77%
- 33.49%
|
34.81%
- 35.13%
|
Weighted-average
|
31.21%
|
33.47%
|
35.12%
|
Expected
dividend yield:
|
|||
Range
used
|
1.24%
- 1.43%
|
1.17%
- 1.45%
|
1.31%
- 1.49%
|
Weighted-average
|
1.24%
|
1.45%
|
1.32%
|
Risk-free
interest rate:
|
|||
Range
used
|
4.62%
- 5.08%
|
4.21%
- 4.57%
|
4.36%
- 4.80%
|
Number
of Shares
|
|
Weighted-Average
Exercise Price
|
|||||
Outstanding
at January 3, 2004
|
1,469,250
|
$
|
24.15
|
||||
Granted
|
340,900
|
39.59
|
|||||
Exercised
|
(448,500
|
)
|
22.33
|
||||
Forfeited
|
(53,200
|
)
|
27.61
|
||||
Outstanding
at January 1, 2005
|
1,308,450
|
$
|
28.65
|
||||
Granted
|
175,800
|
42.81
|
|||||
Exercised
|
(331,500
|
)
|
25.14
|
||||
Forfeited
|
(24,100
|
)
|
30.95
|
||||
Outstanding
at December 31, 2005
|
1,128,650
|
$
|
31.84
|
||||
Granted
|
135,946
|
58.06
|
|||||
Exercised
|
(68,500
|
)
|
22.51
|
||||
Forfeited
|
(22,480
|
)
|
39.91
|
||||
Outstanding
at December 30, 2006
|
1,173,616
|
$
|
35.27
|
Nonvested
Shares
|
Shares
|
Weighted-Average
Grant-Date Fair Value
|
|||||
Nonvested
at December 31, 2005
|
695,400
|
$
|
14.07
|
||||
Granted
|
135,946
|
21.39
|
|||||
Vested
|
(142,900
|
)
|
11.91
|
||||
Forfeited
|
(22,480
|
)
|
15.90
|
||||
Nonvested
at December 30, 2006
|
665,966
|
$
|
15.97
|
Options
|
Number
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining Life in Years
|
Aggregate
Intrinsic Value ($000s)
|
|||||||||
Vested
or expected to vest
|
1,138,296
|
$
|
34.95
|
5.3
|
$
|
10,768
|
|||||||
Exercisable
|
507,650
|
$
|
28.57
|
2.6
|
$
|
8,041
|
Year
ended
|
||||||||||
(In
thousands)
|
Dec.
30, 2006
|
|
Dec.
31, 2005
|
|
Jan.
1, 2005
|
|||||
Total
fair value of shares vested
|
$
|
1,702
|
$
|
875
|
$
|
9,242
|
||||
Total
intrinsic value of options exercised
|
1,987
|
8,447
|
8,100
|
|||||||
Cash
received from exercise of stock options
|
1,542
|
8,334
|
10,014
|
|||||||
Tax
benefit realized from exercise of stock options
|
725
|
2,999
|
2,956
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Change
in benefit obligation
|
||||||||||
Benefit
obligation at beginning of year
|
$
|
19,738
|
$
|
18,958
|
$
|
18,331
|
||||
Service
cost
|
326
|
303
|
284
|
|||||||
Interest
cost
|
1,053
|
1,057
|
1,066
|
|||||||
Benefits
paid
|
(1,218
|
)
|
(1,503
|
)
|
(1,780
|
)
|
||||
Actuarial
(gain) or loss
|
(817
|
)
|
923
|
1,057
|
||||||
Benefit
obligation at end of year
|
$
|
19,082
|
$
|
19,738
|
$
|
18,958
|
||||
Change
in plan assets
|
||||||||||
Fair
value at beginning of year
|
$
|
7,582
|
$
|
8,777
|
$
|
10,250
|
||||
Actual
return on assets
|
326
|
300
|
112
|
|||||||
Employer
contributions
|
3
|
8
|
195
|
|||||||
Benefits
paid
|
(1,218
|
)
|
(1,503
|
)
|
(1,780
|
)
|
||||
Fair
value at end of year
|
$
|
6,693
|
$
|
7,582
|
$
|
8,777
|
||||
Funded
Status of Plan
|
$
|
(12,388
|
)
|
$
|
(12,156
|
)
|
$
|
(10,181
|
)
|
|
Amounts
recognized in the Statement of Financial Position consist
of:
|
||||||||||
Current
liabilities
|
$
|
0
|
*
|
*
|
||||||
Noncurrent
liabilities
|
$
|
12,388
|
*
|
*
|
||||||
Amounts
recognized in Accumulated Other Comprehensive Income (before tax)
consist
of:
|
||||||||||
Unrecognized
Actuarial (Gain)/Loss
|
$
|
2,069
|
*
|
*
|
||||||
Unrecognized
Transition (Asset)/Obligation
|
3,618
|
*
|
*
|
|||||||
Unrecognized
prior service cost
|
431
|
*
|
*
|
|||||||
$
|
6,118
|
*
|
*
|
|||||||
Change
in Accumulated Other Comprehensive Income (before
tax):
|
||||||||||
Amount
disclosed at beginning of year
|
$
|
0
|
*
|
*
|
||||||
Change
during year prior to SFAS 158 adoption
|
0
|
*
|
*
|
|||||||
Change
due to the adoption of SFAS 158
|
6,118
|
*
|
*
|
|||||||
Amount
disclosed at end of year
|
$
|
6,118
|
*
|
*
|
||||||
Reconciliation
of funded status
|
||||||||||
Funded
status
|
N/A
|
$
|
(12,156
|
)
|
$
|
(10,181
|
)
|
|||
Unrecognized
actuarial (gain) or loss
|
N/A
|
3,132
|
2,340
|
|||||||
Unrecognized
transition obligation or (asset)
|
N/A
|
4,199
|
4,780
|
|||||||
Unrecognized
prior service cost
|
N/A
|
661
|
892
|
|||||||
Net
amount recognized at year-end
|
N/A
|
$
|
(4,164
|
)
|
$
|
(2,169
|
)
|
Estimated
Future Benefit Payments (In
thousands)
|
||||
Fiscal
2007
|
$
|
1,376
|
||
Fiscal
2008
|
1,344
|
|||
Fiscal
2009
|
1,335
|
|||
Fiscal
2010
|
1,332
|
|||
Fiscal
2011
|
1,331
|
|||
Fiscal
2012 - 2016
|
7,321
|
|||
Expected
Contributions During Fiscal 2007
|
||||
Total
|
$
|
0
|
Plan
Assets - Percentage of Fair Value by Category
|
||||||||||
2006
|
|
2005
|
|
2004
|
||||||
Cash
Equivalents
|
1
|
%
|
0
|
%
|
0
|
%
|
||||
Equity
|
25
|
%
|
0
|
%
|
0
|
%
|
||||
Debt
|
74
|
%
|
0
|
%
|
0
|
%
|
||||
Other
|
0
|
%
|
100
|
%
|
100
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
Components
of Net Periodic Postretirement Benefit Cost (in
thousands)
|
2007
|
|||
Service
cost
|
$
|
481
|
||
Interest
cost
|
1,067
|
|||
Expected
return on assets
|
(240
|
)
|
||
Amortization
of unrecognized net (gain)/loss
|
13
|
|||
Amortization
of unrecognized transition (asset)/obligation
|
581
|
|||
Amortization
of unrecognized prior service cost
|
230
|
|||
Net
periodic postretirement benefit cost/(income)
|
$
|
2,132
|
(In
thousands)
|
Capitalized
Leases
|
|
Operating
Leases
|
||||
2007
|
$
|
211
|
$
|
31,001
|
|||
2008
|
211
|
27,740
|
|||||
2009
|
211
|
24,407
|
|||||
2010
|
211
|
21,516
|
|||||
2011
|
168
|
17,164
|
|||||
Thereafter
|
-
|
19,402
|
|||||
Total
minimum lease payments
|
1,012
|
$
|
141,230
|
||||
Less:
amount representing interest
|
197
|
||||||
Present
value of net minimum lease payments, including current maturities
of
$141
|
$
|
815
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Buildings
|
$
|
3,299
|
$
|
3,299
|
$
|
3,299
|
||||
Machinery
and equipment
|
-
|
38
|
196
|
|||||||
Office
equipment
|
-
|
761
|
761
|
|||||||
3,299
|
4,098
|
4,256
|
||||||||
Less:
allowances for depreciation
|
2,954
|
3,564
|
3,307
|
|||||||
$
|
345
|
$
|
534
|
$
|
949
|
(In
thousands)
|
2006
|
|
2005
|
|
2004
|
|||||
Net
sales:
|
||||||||||
Office
furniture
|
$
|
2,077,040
|
$
|
1,838,386
|
$
|
1,561,765
|
||||
Hearth
products
|
602,763
|
594,930
|
522,670
|
|||||||
$
|
2,679,803
|
$
|
2,433,316
|
$
|
2,084,435
|
|||||
Operating
profit:
|
||||||||||
Office
furniture (a)(b)
|
$
|
181,811
|
$
|
177,487
|
$
|
155,019
|
||||
Hearth
products
|
58,699
|
74,822
|
62,158
|
|||||||
Total
operating profit
|
240,510
|
252,309
|
217,177
|
|||||||
Unallocated
corporate expenses
|
(47,105
|
)
|
(36,424
|
)
|
(38,185
|
)
|
||||
Income
before income taxes
|
$
|
193,405
|
$
|
215,885
|
$
|
178,992
|
||||
Depreciation
and amortization expense:
|
||||||||||
Office
furniture
|
$
|
48,753
|
$
|
43,967
|
$
|
45,737
|
||||
Hearth
products
|
16,559
|
15,275
|
15,061
|
|||||||
General
corporate
|
4,191
|
6,272
|
5,905
|
|||||||
$
|
69,503
|
$
|
65,514
|
$
|
66,703
|
|||||
Capital
expenditures:
|
||||||||||
Office
furniture
|
$
|
42,126
|
$
|
27,760
|
$
|
18,635
|
||||
Hearth
products
|
11,093
|
8,498
|
13,878
|
|||||||
General
corporate
|
6,705
|
5,544
|
3,287
|
|||||||
$
|
59,924
|
$
|
41,802
|
$
|
35,800
|
|||||
Identifiable
assets:
|
||||||||||
Office
furniture
|
$
|
748,285
|
$
|
617,591
|
$
|
570,294
|
||||
Hearth
products
|
359,646
|
361,568
|
338,602
|
|||||||
General
corporate
|
118,428
|
161,112
|
112,761
|
|||||||
$
|
1,226,359
|
$
|
1,140,271
|
$
|
1,021,657
|
(a)
|
Included
in operating profit for the office furniture segment are pretax charges
of
$2.8 million, $3.5 million, and $0.9 million, for closing of facilities
and impairment charges in 2006, 2005, and 2004,
respectively.
|
(b)
|
Includes
minority interest.
|
Year-End
2006:
(In
thousands, except per share data)
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||
Net
sales
|
$
|
645,565
|
$
|
667,706
|
$
|
684,317
|
$
|
682,215
|
|||||
Cost
of products sold
|
416,610
|
434,060
|
447,587
|
454,625
|
|||||||||
Gross
profit
|
228,955
|
233,646
|
236,730
|
227,590
|
|||||||||
Selling
and administrative expenses
|
181,188
|
184,806
|
176,134
|
175,548
|
|||||||||
Restructuring
related charges (income)
|
1,719
|
228
|
(27
|
)
|
909
|
||||||||
Operating
income
|
46,408
|
48,612
|
60,623
|
51,133
|
|||||||||
Interest
income (expense) - net
|
(1,108
|
)
|
(3,425
|
)
|
(4,111
|
)
|
(4,540
|
)
|
|||||
Earnings
from continuing operations before income taxes and minority
interest
|
44,940
|
45,187
|
56,512
|
46,593
|
|||||||||
Income
taxes (1)
|
16,403
|
16,493
|
20,627
|
10,147
|
|||||||||
Minority
interest in earnings of a subsidiary
|
(39
|
)
|
(22
|
)
|
(24
|
)
|
(25
|
)
|
|||||
Income
from continuing operations
|
28,576
|
28,716
|
35,909
|
36,471
|
|||||||||
Discontinued
operations, less applicable taxes
|
(106
|
)
|
(64
|
)
|
(147
|
)
|
(5,980
|
)
|
|||||
Net
income
|
$
|
28,470
|
$
|
28,652
|
$
|
35,762
|
$
|
30,491
|
|||||
Net
income from continuing operations - basic
|
$
|
.55
|
$
|
.56
|
$
|
.73
|
$
|
.76
|
|||||
Net
income from discontinued operations - basic
|
(.00
|
)
|
(.00
|
)
|
(.00
|
)
|
(.13
|
)
|
|||||
Net
income per common share - basic
|
$
|
.55
|
$
|
.56
|
$
|
.73
|
$
|
.63
|
|||||
Weighted-average
common shares outstanding - basic
|
51,836
|
51,009
|
49,324
|
48,069
|
|||||||||
Net
income from continuing operations - diluted
|
$
|
.55
|
$
|
.56
|
$
|
.72
|
$
|
.75
|
|||||
Net
income from discontinued operations - diluted
|
(.00
|
)
|
(.00
|
)
|
(.00
|
)
|
(.12
|
)
|
|||||
Net
income per common share - diluted
|
$
|
.55
|
$
|
.56
|
$
|
.72
|
$
|
.63
|
|||||
Weighted-average
common shares outstanding - diluted
|
52,229
|
51,339
|
49,592
|
48,363
|
|||||||||
As
a Percentage of Net Sales
|
|||||||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Gross
profit
|
35.5
|
35.0
|
34.6
|
33.4
|
|||||||||
Selling
and administrative expenses
|
28.1
|
27.7
|
25.7
|
25.7
|
|||||||||
Restructuring
related charges
|
0.3
|
0.0
|
(0.0
|
)
|
0.1
|
||||||||
Operating
income
|
7.2
|
7.3
|
8.9
|
7.5
|
|||||||||
Income
taxes
|
2.5
|
2.5
|
3.0
|
1.5
|
|||||||||
Income
from continuing operations
|
4.4
|
4.3
|
5.2
|
5.3
|
|||||||||
Discontinued
operations, less applicable taxes
|
(0.0
|
)
|
(0.0
|
)
|
(0.0
|
)
|
(0.9
|
)
|
|||||
Net
income
|
4.4
|
4.3
|
5.2
|
4.5
|
(1)
|
The
Corporation recorded a $4.1 million tax benefit in the 4th
quarter of 2006 as discussed in the “Income Taxes” footnote to the
financial statements.
|
Year-End
2005:
(In
thousands, except per share data)
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||
Net
sales
|
$
|
558,168
|
$
|
589,620
|
$
|
628,291
|
$
|
657,237
|
|||||
Cost
of products sold
|
363,139
|
376,169
|
393,200
|
416,967
|
|||||||||
Gross
profit
|
195,029
|
213,451
|
235,091
|
240,270
|
|||||||||
Selling
and administrative expenses
|
154,244
|
158,936
|
170,837
|
179,650
|
|||||||||
Restructuring
related charges
|
-
|
-
|
1,071
|
2,391
|
|||||||||
Operating
income
|
40,785
|
54,515
|
63,183
|
58,229
|
|||||||||
Interest
income (expense) - net
|
55
|
98
|
(498
|
)
|
(492
|
)
|
|||||||
Earnings
from continuing operations before income taxes and minority
interest
|
40,840
|
54,613
|
62,685
|
57,737
|
|||||||||
Income
taxes
|
14,498
|
19,386
|
22,251
|
21,580
|
|||||||||
Minority
interest in earnings of a subsidiary
|
-
|
-
|
(11
|
)
|
5
|
||||||||
Income
from continuing operations
|
26,342
|
35,227
|
40,445
|
36,152
|
|||||||||
Discontinued
operations, less applicable taxes
|
(220
|
)
|
(242
|
)
|
116
|
(400
|
)
|
||||||
Net
income
|
$
|
26,122
|
$
|
34,985
|
$
|
40,561
|
$
|
35,752
|
|||||
Net
income from continuing operations - basic
|
$
|
.48
|
$
|
.64
|
$
|
.74
|
$
|
.68
|
|||||
Net
income from discontinued operations - basic
|
(.01
|
)
|
(.01
|
)
|
.00
|
(.01
|
)
|
||||||
Net
income per common share - basic
|
$
|
.47
|
$
|
.63
|
$
|
.74
|
$
|
.67
|
|||||
Weighted-average
common shares outstanding - basic
|
55,176
|
55,131
|
55,012
|
53,278
|
|||||||||
Net
income from continuing operations - diluted
|
$
|
.47
|
$
|
.63
|
$
|
.73
|
$
|
.67
|
|||||
Net
income from discontinued operations - diluted
|
(.00
|
)
|
(.00
|
)
|
.00
|
(.00
|
)
|
||||||
Net
income per common share - diluted
|
$
|
.47
|
$
|
.63
|
$
|
.73
|
$
|
.67
|
|||||
Weighted-average
common shares outstanding - diluted
|
55,551
|
55,513
|
55,447
|
53,693
|
|||||||||
As
a Percentage of Net Sales
|
|||||||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Gross
profit
|
34.9
|
36.2
|
37.4
|
36.6
|
|||||||||
Selling
and administrative expenses
|
27.6
|
27.0
|
27.2
|
27.3
|
|||||||||
Restructuring
related charges
|
-
|
-
|
0.2
|
0.4
|
|||||||||
Operating
income
|
7.3
|
9.2
|
10.1
|
8.9
|
|||||||||
Income
taxes
|
2.6
|
3.3
|
3.5
|
3.3
|
|||||||||
Income
from continuing operations
|
4.7
|
6.0
|
6.4
|
5.5
|
|||||||||
Discontinued
operations, less applicable taxes
|
(0.0
|
)
|
(0.0
|
)
|
0.0
|
(0.1
|
)
|
||||||
Net
income
|
4.7
|
5.9
|
6.5
|
5.4
|
Year-End
2004:
(In
thousands, except per share data)
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||
Net
sales
|
$
|
464,037
|
$
|
508,605
|
$
|
569,485
|
$
|
542,308
|
|||||
Cost
of products sold
|
294,275
|
324,984
|
364,748
|
350,770
|
|||||||||
Gross
profit
|
169,762
|
183,621
|
204,737
|
191,538
|
|||||||||
Selling
and administrative expenses
|
134,580
|
142,579
|
146,657
|
146,421
|
|||||||||
Restructuring
related charges
|
520
|
215
|
135
|
16
|
|||||||||
Operating
income
|
34,662
|
40,827
|
57,945
|
45,101
|
|||||||||
Interest
income (expense) - net
|
355
|
120
|
(29
|
)
|
11
|
||||||||
Earnings
from continuous operations before income taxes
|
35,017
|
40,947
|
57,916
|
45,112
|
|||||||||
Income
taxes
|
12,606
|
15,121
|
21,139
|
16,466
|
|||||||||
Income
from continuous operations
|
22,411
|
25,826
|
36,777
|
28,646
|
|||||||||
Discontinued
operations, less applicable taxes
|
-
|
-
|
(33
|
)
|
(45
|
)
|
|||||||
Net
income
|
$
|
22,411
|
$
|
25,826
|
$
|
36,744
|
$
|
28,601
|
|||||
Net
income from continuing operations - basic
|
$
|
.38
|
$
|
.45
|
$
|
.65
|
$
|
.52
|
|||||
Net
income from discontinued operations - basic
|
-
|
-
|
(.00
|
)
|
(.00
|
)
|
|||||||
Net
income per common share - basic
|
$
|
.38
|
$
|
.45
|
$
|
.65
|
$
|
.52
|
|||||
Weighted-average
common shares outstanding - basic
|
58,240
|
57,943
|
56,192
|
55,511
|
|||||||||
Net
income from continuing operations - diluted
|
$
|
.38
|
$
|
.44
|
$
|
.65
|
$
|
.51
|
|||||
Net
income from discontinued operations - diluted
|
-
|
-
|
(.00
|
)
|
(.00
|
)
|
|||||||
Net
income per common share - diluted
|
$
|
.38
|
$
|
.44
|
$
|
.65
|
$
|
.51
|
|||||
Weighted-average
common shares outstanding - diluted
|
58,690
|
58,378
|
56,635
|
55,897
|
|||||||||
As
a Percentage of Net Sales
|
|||||||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Gross
profit
|
36.6
|
36.1
|
36.0
|
35.3
|
|||||||||
Selling
and administrative expenses
|
29.0
|
28.0
|
25.8
|
27.0
|
|||||||||
Restructuring
related charges
|
0.1
|
0.0
|
0.0
|
0.0
|
|||||||||
Operating
income
|
7.5
|
8.0
|
10.2
|
8.3
|
|||||||||
Income
taxes
|
2.7
|
3.0
|
3.7
|
3.0
|
|||||||||
Income
from continuing operations
|
4.8
|
5.1
|
6.5
|
5.3
|
|||||||||
Discontinued
operations, less applicable taxes
|
-
|
-
|
(0.0
|
)
|
(0.0
|
)
|
|||||||
Net
income
|
4.8
|
5.1
|
6.5
|
5.3
|
2006
by Quarter
|
High
|
|
Low
|
|
Dividends
per Share
|
|||||
1st
|
$
|
61.68
|
$
|
54.83
|
$
|
.18
|
||||
2nd
|
59.70
|
44.68
|
.18
|
|||||||
3rd
|
46.14
|
38.34
|
.18
|
|||||||
4th
|
48.31
|
41.05
|
.18
|
|||||||
Total
Dividends Paid
|
$
|
.72
|
2005
by Quarter
|
High
|
|
Low
|
|
Dividends
per Share
|
|||||
1st
|
$
|
45.70
|
$
|
38.80
|
$
|
.155
|
||||
2nd
|
54.23
|
44.65
|
.155
|
|||||||
3rd
|
60.23
|
50.92
|
.155
|
|||||||
4th
|
62.41
|
46.94
|
.155
|
|||||||
Total
Dividends Paid
|
$
|
.62
|
2004
by Quarter
|
|
High
|
|
Low
|
|
Dividends
per Share
|
||||
1st
|
$
|
45.71
|
$
|
35.25
|
$
|
.14
|
||||
2nd
|
42.42
|
36.56
|
.14
|
|||||||
3rd
|
42.13
|
36.97
|
.14
|
|||||||
4th
|
43.65
|
38.52
|
.14
|
|||||||
Total
Dividends Paid
|
$
|
.56
|
Market
Price
|
Diluted
|
Price/Earnings
Ratio
|
||||||||||||||
Year
|
High
|
|
Low
|
|
Earnings
per Share
|
|
High
|
|
Low
|
|||||||
2006
|
$
|
61.68
|
$
|
38.34
|
$
|
2.45
|
25
|
16
|
||||||||
2005
|
62.41
|
38.80
|
2.50
|
25
|
16
|
|||||||||||
2004
|
45.71
|
35.25
|
1.97
|
23
|
18
|
|||||||||||
2003
|
44.12
|
24.65
|
1.68
|
26
|
15
|
|||||||||||
2002
|
30.85
|
22.88
|
1.55
|
20
|
15
|
|||||||||||
Five-Year
Average
|
24
|
16
|
COL.
A
|
COL.
B
|
COL.
C
|
COL.
D
|
COL.
E
|
||||||||||||
ADDITIONS
|
||||||||||||||||
DESCRIPTION
|
BALANCE
AT
BEGINNING
OF
PERIOD
|
(1)
CHARGED
TO
COSTS
AND
EXPENSES
|
(2)
CHARGED
TO
OTHER
ACCOUNTS
(DESCRIBE)
|
DEDUCTIONS
(DESCRIBE)
|
BALANCE
AT END OF PERIOD
|
|||||||||||
(In
thousands)
|
||||||||||||||||
Year
ended December 30, 2006:
Allowance
for doubtful accounts
|
$
|
11,977
|
$
|
3,363
|
-
|
$
|
2,544
(A
|
)
|
$
|
12,796
|
||||||
Year
ended December 31, 2005:
Allowance
for doubtful accounts
|
$
|
11,388
|
$
|
3,738
|
-
|
$
|
3,149
(A
|
)
|
$
|
11,977
|
||||||
Year
ended January 1, 2005:
Allowance
for doubtful accounts
|
$
|
10,859
|
$
|
2,784
|
-
|
$
|
2,255
(A
|
)
|
$
|
11,388
|
Exhibit
Number
|
Description
of Document
|
|
(3i)
|
Articles
of Incorporation of the Registrant, incorporated by reference to
Exhibit
99.5 to the Registrant’s Current Report on Form 8-K filed May 4, 2004
|
|
(3ii)
|
By-Laws
of the Registrant, as amended, incorporated by reference to Exhibit
3(ii)
to the Registrant’s Current Report on Form 8-K filed November 16,
2006
|
|
(4i)
|
Rights
Agreement dated as of August 13, 1998, by and between the Registrant
and
Harris Trust and Savings Bank, as Rights Agent, incorporated by reference
to Exhibit 4.1 to Registration Statement on Form 8-A filed August
14,
1998, as amended by Form 8-A/A filed September 14, 1998, incorporated
by
reference to Exhibit 4.1 on Form 8-K filed August 10, 1998
|
|
(10i)
|
1995
Stock-Based Compensation Plan, as amended effective August 8, 2006,
incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly
Report on Form 10-Q for the quarter ended September 30, 2006
|
|
(10ii)
|
1997
Equity Plan for Non-Employee Directors, as amended August 8, 2006,
incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2006
|
|
(10iii)
|
Form
of Registrant's Change in Control Agreement as amended November 10,
2006,
incorporated by reference to Exhibit 10.1 to the Registrant's Current
Report on Form 8-K dated November 10, 2006
|
|
(10iv)
|
Executive
Long-Term Incentive Compensation Plan of the Registrant, incorporated
by
reference to Exhibit 99B to the Registrant's Annual Report on Form
10-K
for the year ended December 30, 1995*
|
|
(10v)
|
ERISA
Supplemental Retirement Plan of the Registrant, incorporated by reference
to Exhibit 99C to the Registrant's Annual Report on Form 10-K for
the year
ended December 31, 2005*
|
|
(10vi)
|
2002
Members Stock Purchase Plan of the Registrant, incorporated by reference
to Exhibit B to the Registrant’s proxy statement dated March 22, 2002,
related to the Registrant’s Annual Meeting of Shareholders held on May 6,
2002*
|
|
(10vii)
|
Agreement
as Consultant and Director, dated November 15, 1995, between the
Registrant and Robert L. Katz, incorporated by reference to the same
numbered exhibit filed with the Registrant's Annual Report on Form
10-K/A
for the fiscal year ended December 28, 1996*
|
|
(10viii)
|
Form
of Director and Officer Indemnification Agreement of the Registrant,
incorporated by reference to the same numbered exhibit filed with
the
Registrant's Annual Report on Form 10-K/A for the fiscal year ended
December 28, 2002
|
Exhibit
Number
|
Description
of Document
|
|
(10ix)
|
Form
of Common Stock Grant Agreement of the Registrant, incorporated by
reference to the same numbered exhibit filed with the Registrant's
Annual
Report on Form 10-K/A for the fiscal year ended December 28, 1996*
|
|
(10x)
|
Form
of HNI Corporation Stock-Based Compensation Plan Stock Option Award
Agreement of the Registrant, incorporated by reference to Exhibit
99D to
the Registrant’s Current Report on Form 8-K filed February 18,
2005
|
|
(10xi)
|
Stock
Purchase Agreement of the Registrant, dated September 18, 1985, as
amended
by amendment dated February 11, 1991, between the Registrant and
Stanley
M. Howe, incorporated by reference to Exhibit 10(xi) to the Registrant’s
Annual Report on Form 10-K for the year ended January 3,
1998*
|
|
(10xii)
|
Credit
Agreement dated as of January 28, 2005, among HNI Corporation, as
Borrower, certain domestic subsidiaries of the Borrower from time
to time
party thereto, as Guarantors, the lenders parties thereto and Wachovia
Bank, National Association, as Administrative Agent, incorporated
by
reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K
filed February 2, 2005
|
|
(10xiii)
|
HNI
Corporation Profit-Sharing Retirement Plan of the Registrant as amended
effective January 1, 2001, incorporated by reference to Exhibit 10(xiv)
to
the Registrant’s Annual Report on 10-K for the year ended December 29,
2001*
|
|
(10xiv)
|
HNI
Corporation Long-Term Performance Plan of the Registrant, as amended
on
August 8, 2006, incorporated by reference to Exhibit 10.3 to the
Registrant's Quarterly Report on Form 10-Q for the quarter ended
September
30, 2006
|
|
(10xv)
|
First
Amendment to Credit Agreement dated as of December 22, 2005, by and
among
HNI Corporation, as Borrower, certain domestic subsidiaries of HNI
Corporation, as guarantors, certain lenders party thereto and Wachovia
Bank, National Association, as Administrative Agent, incorporated
by
reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K
filed February 17, 2006
|
|
(10xvi)
|
Executive
Deferred Compensation Plan of the Registrant as amended and restated
on
August 8, 2006, incorporated by reference to Exhibit 10.5 to the
Registrant's Quarterly Report on Form 10-Q for the quarter ended
September
30, 2006
|
|
(10xvii)
|
Second
Amendment to Credit Agreement dated as of April 6, 2006, by and among
HNI
Corporation as borrower, certain domestic subsidiaries of HNI Corporation,
as Guarantors, certain lenders party thereto and Wachovia Bank, National
Association, as Administrative Agent is incorporated by reference
to
Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed April
10, 2006
|
|
(10xviii)
|
Note
Purchase Agreement dated as of April 6, 2006, by and among HNI Corporation
and the Purchasers named therein is incorporated by reference to
Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed April 10,
2006
|
Exhibit
Number
|
Description
of Document
|
|
(10xix)
|
Directors
Deferred Compensation Plan of the Registrant as amended on August
8, 2006,
incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30,
2006
|
|
(10xx)
|
Third
Amendment to Credit Agreement dated as of November 8, 2006, by and
among
HNI Corporation as borrower, certain domestic subsidiaries of HNI
Corporation, as Guarantors, certain lenders party thereto and Wachovia
Bank, National Association, as Administrative Agent is incorporated
by
reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K
filed November 8, 2006
|
|
Subsidiaries
of the Registrant
|
||
Consent
of Independent Registered Public Accounting Firm
|
||
Certification
of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
||
Certification
of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
||
Certification
of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to
Section 906 of the Sarbanes-Oxley Act of 2002
|
||
(99A)
|
Executive
Bonus Plan of the Registrant as amended and restated on August 8,
2006,
incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly
Report on Form 10-Q for the quarter ended September 30,
2006
|
*
|
Indicates
management contract or compensatory
plan.
|