Hni Corp 10-K for FY2022

Hni Corp (HNI)

10-K 2023-02-28 For: 2022-12-31

Added on April 10, 2026

About this 10-K

Hni Corp filed this 10-K on February 28, 2023, covering the fiscal year ended December 31, 2022 (FY2022).

Headline figures

Fiscal year ended December 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.36B; up 8.1% from $2.18B a year earlier
Net income: $123.9M; up 107.2% from net income of $59.8M a year earlier
Diluted EPS: $2.94; up 116.2% from $1.36 a year earlier

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HNI Corporation and Subsidiaries
Annual Report on Form 10-K

Table of Contents

PART I
		Page
Item 1.	Business	4
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	18
Item 2.	Properties	18
Item 3.	Legal Proceedings	18
Item 4.	Mine Safety Disclosures	18
	Table I - Information about Executive Officers	19

PART II

Item 5.	Market for Registrant ’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities	20

Item 6.	[Reserved]	20
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 8.	Financial Statements and Supplementary Data	27
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	27
Item 9A.	Controls and Procedures	27
Item 9B.	Other Information	28
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspection	28

PART III


Item 10.	Directors, Executive Officers, and Corporate Governance	29
Item 11.	Executive Compensation	29
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	29
Item 13.	Certain Relationships and Related Transactions, and Director Independence	29
Item 14.	Principal Accounting Fees and Services	29

PART IV

Item 15.	Exhibits, Financial Statement Schedules	30
Item 16.	Form 10-K Summary	32
Signatures		32
Management Report on Internal Control Over Financial Reporting		34
Report of Independent Registered Public Accounting Firm		35
Financial Statements		37
Notes to Consolidated Financial Statements		42


	Number of Facilities		Square Feet (in thousands)
Location	Workplace Furnishings	Residential Building Products	Owned	Leased
Muscatine, IA	6	—	2,211	—
Lake City, MN	—	2	342	—
Other U.S.	9	6	1,966	1,556
Outside U.S.	2	—	355	159


	2022		2021		Change
Net sales	$	2,361.8	$	2,184.4	8.1	%
Cost of sales	1,526.9		1,427.0		7.0	%
Gross profit	834.9		757.4		10.2	%
Selling and administrative expenses	723.4		665.6		8.7	%
Gain on sale of subsidiary	(50.4)		—		100.0	%
Restructuring and impairment charges	6.7		6.3		5.8	%
Operating income	155.2		85.4		81.7	%
Interest expense, net	8.8		7.2		23.0	%
Income before income taxes	146.4		78.3		87.0	%
Income tax expense	22.5		18.5		22.0	%
Net loss attributable to non-controlling interest	(0.0)		(0.0)		(95.7)	%
Net income attributable to HNI Corporation	$	123.9	$	59.8	107.1	%


As a Percentage of Net Sales:
Net sales	100.0	%	100.0	%
Gross profit	35.4		34.7		70	bps
Selling and administrative expenses	30.6		30.5		10	bps
Gain on sale of subsidiary	2.1		—		210	bps
Restructuring and impairment charges	0.3		0.3		0	bps
Operating income	6.6		3.9		270	bps
Income tax expense	1.0		0.8		20	bps
Net income attributable to HNI Corporation	5.2		2.7		250	bps


	2022		2021
Cost of sales - restructuring charges	$	8.8	$	7.6
Restructuring and impairment charges	$	6.7	$	6.3


(3.1)			Amended and Restated Articles of Incorporation of HNI Corporation (incorporated by reference to Exhibit 3.1 to the Registrant ’s Annual Report on Form 10-K for the year ended January 2, 2010)
(3.2)			Amended and Restated By-laws of HNI Corporation, effective May 10, 2021 (incorporated by reference to Exhibit 3.1 to the Registrant ’s Current Report on Form 8-K filed May 11, 2021)
(4.1)			Description of Securities of HNI Corporation (incorporated by reference to Exhibit 4.1 to the Registrant ’s Annual Report on Form 10-K for the year ended December 28, 2019)
(10.1)			Fourth Amended and Restated Credit Agreement, dated as of June 14, 2022, by and among HNI Corporation, as borrower, certain domestic subsidiaries of HNI Corporation, as guarantors, certain lenders and Wells Fargo Bank, National Association, as administrative agent (incorporated by reference to Exhibit 10.1 to the Registrant ’s Current Report on Form 8-K filed June 17, 2022)
(10.2)			Note Purchase Agreement, dated May 31, 2018, among HNI Corporation and the purchasers named therein (incorporated by reference to Exhibit 10.1 to the Registrant ’s Current Report on Form 8-K filed May 31, 2018)
(10.3)			Guaranty Agreement, dated May 31, 2018, made by each of the guarantors named therein (incorporated by reference to Exhibit 10.2 to the Registrant ’s Current Report on Form 8-K filed May 31, 2018)
(10.4)			HNI Corporation 2007 Stock-Based Compensation Plan, as amended (incorporated by reference to Appendix A to the Registrant ’s Definitive Proxy Statement filed with the SEC March 23, 2015)*
(10.5)			Amended form of HNI Corporation 2007 Stock-Based Compensation Plan Stock Option Award Agreement (incorporated by reference to Exhibit 10.1 to the Registrant ’s Current Report on Form 8-K filed March 22, 2018)*
(10.6)			HNI Corporation 2017 Stock-Based Compensation Plan (incorporated by reference to Exhibit 4.3 to the Registrant ’s Form S-8 filed May 9, 2017)*
(10.7)			Amended form of HNI Corporation 2017 Stock-Based Compensation Plan Stock Option Award Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed March 22, 2018)*
(10.8)			Form of HNI Corporation 2017 Stock-Based Compensation Plan Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017)*
(10.9)			2017 Equity Plan for Non-Employee Directors of HNI Corporation (incorporated by reference to Exhibit 4.4 to the Registrant’s Form S-8 filed May 9, 2017)*


(10.10)			Form of 2017 Equity Plan for Non-Employee Directors of HNI Corporation Participation Agreement (incorporated by reference to Exhibit 10.3 to the Registrant ’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017)*
(10.11)			Form of HNI Corporation Change In Control Employment Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed June 29, 2018)*
(10.12)			Form of HNI Corporation Amended and Restated Indemnity Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed November 14, 2007)*
(10.13)			HNI Corporation Supplemental Income Plan (f/k/a HNI Corporation ERISA Supplemental Retirement Plan), as amended and restated (incorporated by reference to Exhibit 10.4 to the Registrant ’s Current Report on Form 8-K filed February 22, 2010)*
(10.14)			HNI Annual Incentive Plan, as amended (incorporated by reference to Appendix B to the Registrant ’s Definitive Proxy Statement filed with the SEC March 23, 2015)*
(10.15)			HNI Corporation Long-Term Performance Plan, as amended (incorporated by reference to Appendix C to the Regi strant ’s Definitive Proxy Statement filed with the SEC March 23, 2015)*
(10.16)			HNI Corporation Executive Deferred Compensation Plan, as amended (incorporated by reference to Exhibit 10.1 to the Registrant ’s Quarterly Report on Form 10-Q for the quarter ended July 4, 2015)*
(10.17)			Form of HNI Corporation Executive Deferred Compensation Plan Deferral Election Agreement (incorporated by reference to Exhibit 10.25 to the Registrant ’s Annual Report on Form 10-K for the year ended January 2, 2010)*
(10.18)			HNI Corporation Directors Deferred Compensation Plan, as amended (incorporated by reference to Exhibit 10.2 to the Registrant ’s Quarterly Report on Form 10-Q for the quarter ended July 4, 2015)*
(10.19)			Form of HNI Corporation Directors Deferred Compensation Plan Deferral Election Agreement (incorporated by reference to Exhibit 10.6 to the Registrant ’s Annual Report on Form 10-K for the year ended January 2, 2010)*
(10.20)			Amended form of HNI Corporation 2017 Stock-Based Compensation Plan Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.22 to the Registrant’s Annual Report on Form 10-K for the year ended December 28, 2019)*
(10.21)			Form of HNI Corporation 2017 Stock-Based Compensation Plan Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.23 to the Registrant’s Annual Report on Form 10-K for the year ended December 28, 2019)*
(10.22)			Amended form of HNI Corporation 2017 Stock-Based Compensation Plan Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.24 to the Registrant ’s Annual Report on Form 10-K for the year ended January 2, 2021*
(10.23)			HNI Corporation 2021 Stock-Based Compensation Plan (incorporated by reference from Appendix A to the Registrant ’s Proxy Statement filed on April 12, 2021)*
(10.24)			Form of HNI Corporation 2021 Stock-Based Compensation Plan Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2021)*
(10.25)			Form of HNI Corporation 2021 Stock-Based Compensation Plan Restricted Stock Unit Award Agreement (CEO) (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2021)*
(10.26)			Form of HNI Corporation 2021 Stock-Based Compensation Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended July 3, 2021)*
(10.27)			Separation Agreement between HNI Corporation and Kurt Tjaden (incorporated by reference to Exhibit 10.1 to the Registrant ’s Quarterly Report on Form 10-Q for the quarter ended October 1, 2022 )*


(21)			Subsidiaries of the Registrant+
(23.1)			Consent of Independent Registered Public Accounting Firm+
(24)			Powers of Attorney (included on the signatures page of this Annual Report on Form 10-K)
(31.1)			Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002+
(31.2)			Certification of 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+
(101)			The following materials from HNI Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 are formatted in Inline XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) Consolidated Statements of Comprehensive Income; (ii) Consolidated Balance Sheets; (iii) Consolidated Statements of Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements
(104)			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


	HNI Corporation

Date: February 28, 2023	By:	/s/ Jeffrey D. Lorenger
		Name: Jeffrey D. Lorenger
		Title: Chairman, President, and Chief Executive Officer


HNI Corporation and Subsidiaries Consolidated Statements of Comprehensive Income (In millions, except per share data)

	2022		2021		2020
Net sales	$	2,361.8	$	2,184.4	$	1,955.4
Cost of sales	1,526.9		1,427.0		1,234.2
Gross profit	834.9		757.4		721.1
Selling and administrative expenses	723.4		665.6		620.9
Gain on sale of subsidiary	(50.4)		—		—
Restructuring and impairment charges	6.7		6.3		38.8
Operating income	155.2		85.4		61.4
Interest expense, net	8.8		7.2		7.0
Income before income taxes	146.4		78.3		54.4
Income tax expense	22.5		18.5		12.5
Net income	123.9		59.8		41.9
Less: Net income (loss) attributable to non-controlling interest	(0.0)		(0.0)		0.0
Net income attributable to HNI Corporation	$	123.9	$	59.8	$	41.9

Average number of common shares outstanding – basic	41.7		43.4		42.7
Net income attributable to HNI Corporation per common share – basic	$	2.97	$	1.38	$	0.98
Average number of common shares outstanding – diluted	42.2		44.0		43.0
Net income attributable to HNI Corporation per common share – diluted	$	2.94	$	1.36	$	0.98


Foreign currency translation adjustments	$	(5.7)	$	0.4	$	1.8
Change in unrealized gains (losses) on marketable securities, net of tax	(0.7)		(0.3)		0.3
Change in pension and post-retirement liability, net of tax	4.3		1.2		(0.9)
Change in derivative financial instruments, net of tax	0.8		1.0		(2.3)
Other comprehensive income (loss), net of tax	(1.3)		2.4		(1.1)
Comprehensive income	122.6		62.2		40.8
Less: Comprehensive income (loss) attributable to non-controlling interest	(0.0)		(0.0)		0.0
Comprehensive income attributable to HNI Corporation	$	122.6	$	62.2	$	40.8


HNI Corporation and Subsidiaries Consolidated Balance Sheets (In millions)

	December 31, 2022		January 1, 2022
Assets
Current Assets:
Cash and cash equivalents	$	17.4	$	52.3
Short-term investments	2.0		1.4
Receivables	218.4		240.0
Allowance for doubtful accounts	(3.2)		(2.8)
Inventories, net	180.1		181.6

Prepaid expenses and other current assets	54.4		51.1
Total Current Assets	469.2		523.5

Property, Plant, and Equipment:
Land and land improvements	30.8		30.9
Buildings	275.4		294.5
Machinery and equipment	602.6		593.6
Construction in progress	34.2		29.7
	942.9		948.7
Less accumulated depreciation	(590.3)		(581.9)
Net Property, Plant, and Equipment	352.5		366.8

Right-of-use - Finance Leases	11.4		10.2
Right-of-use - Operating Leases	88.4		82.9

Goodwill and Other Intangible Assets, net	439.8		471.5



Other Assets	53.2		43.1

Total Assets	$	1,414.5	$	1,497.9


	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non-controlling Interest		Total Shareholders’ Equity
Balance, December 28, 2019	$	42.6	$	19.8	$	529.7	$	(8.1)	$	0.3	$	584.4
Comprehensive income:
Net income	—		—		41.9		—		0.0		41.9
Other comprehensive income (loss), net of tax	—		—		—		(1.1)		—		(1.1)

Impact of new accounting standard related to credit losses	—		—		(0.1)		—		—		(0.1)
Dividends payable	—		—		(0.2)		—		—		(0.2)
Cash dividends; $1.220 per share	—		—		(52.1)		—		—		(52.1)
Common shares – treasury:
Shares purchased	(0.2)		(5.0)		(1.2)		—		—		(6.4)
Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax	0.5		23.8		—		—		—		24.4
Balance, January 2, 2021	$	42.9	$	38.7	$	518.0	$	(9.2)	$	0.3	$	590.7
Comprehensive income:
Net income (loss)	—		—		59.8		—		(0.0)		59.8
Other comprehensive income (loss), net of tax	—		—		—		2.4		—		2.4


Dividends payable	—		—		(1.0)		—		—		(1.0)
Cash dividends; $1.235 per share	—		—		(53.7)		—		—		(53.7)
Common shares – treasury:
Shares purchased	(1.5)		(50.4)		(8.5)		—		—		(60.4)
Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax	1.2		51.0		—		—		—		52.2
Balance, January 1, 2022	$	42.6	$	39.2	$	514.6	$	(6.8)	$	0.3	$	590.0
Comprehensive income:
Net income (loss)	—		—		123.9		—		(0.0)		123.9
Other comprehensive income (loss), net of tax	—		—		—		(1.3)		—		(1.3)


Dividends payable	—		—		(0.4)		—		—		(0.4)
Cash dividends; $1.270 per share	—		—		(53.0)		—		—		(53.0)
Common shares – treasury:
Shares purchased	(1.7)		(11.1)		(51.1)		—		—		(63.9)
Shares issued under Members’ Stock Purchase Plan and stock awards, net of tax	0.5		21.0		—		—		—		21.5
Balance, December 31, 2022	$	41.4	$	49.1	$	534.0	$	(8.0)	$	0.3	$	616.8


	December 31, 2022		January 1, 2022
Amortized cost basis of debt securities	$	13.7	$	13.2


	Balance at beginning of period		Current provision and adjustments		Amounts written off		Recoveries and other		Divestiture of business		Balance at end of period
Year ended December 31, 2022	$	2.8	$	1.7	$	(1.0)	$	0.2	$	(0.5)	$	3.2
Year ended January 1, 2022	$	5.5	$	(0.9)	$	(1.9)	$	0.1	$	—	$	2.8
Year ended January 2, 2021	$	3.6	$	3.6	$	(1.7)	$	0.0	$	—	$	5.5


	December 31, 2022			January 1, 2022
Finished products	$	121.0		$	137.2
Materials and work in process	112.8			92.0
Last-in, first-out ("LIFO") allowance	(53.7)			(47.6)
Total inventories, net	$	180.1		$	181.6


Inventory valued by the LIFO costing method	91		%	84		%


	2022		2021		2020
Depreciation expense	$	53.3	$	53.0	$	53.4


	December 31, 2022		January 1, 2022
Trade accounts payable	$	165.3	$	233.8
Compensation	47.1		55.4
Profit sharing and retirement	11.6		22.9
Accrued marketing programs	31.3		31.5
Accrued freight	12.5		19.1
Customer deposits	27.3		27.2
Other accrued expenses	72.6		83.9
	$	367.7	$	473.8


	2022		2021		2020
Balance at beginning of period	$	16.0	$	16.1	$	15.9

Accruals for warranties issued during period	9.3		7.7		9.4
Adjustments related to pre-existing warranties	(1.1)		(0.2)		0.1
Settlements made during the period	(9.4)		(7.6)		(9.3)
Balance at end of period	$	14.8	$	16.0	$	16.1


	December 31, 2022		January 1, 2022
Current - in the next twelve months	$	5.4	$	5.4
Long-term - beyond one year	9.4		10.6
	$	14.8	$	16.0


	December 31, 2022		January 1, 2022
Current - "Accounts payable and accrued expenses"	$	5.2	$	5.8
Non-current - "Other Long-Term Liabilities"	18.6		20.5
Total general, auto, product, and workers’ compensation liabilities	$	23.8	$	26.3


	December 31, 2022		January 1, 2022
Trade receivables (1)	$	218.4	$	240.0
Contract assets (current) (2)	$	2.9	$	1.5
Contract assets (long-term) (3)	$	29.8	$	18.2
Contract liabilities - Customer deposits (4)	$	27.3	$	27.2
Contract liabilities - Accrued rebate and marketing programs (4)	$	31.3	$	31.5


	Contract assets increase (decrease)		Contract liabilities (increase) decrease
Contract assets recognized	$	15.9	$	—
Reclassification of contract assets to contra-revenue	(2.9)		—

Contract liabilities recognized and recorded to contra-revenue as a result of performance obligations satisfied	—		(115.7)
Contract liabilities paid	—		116.0
Cash received in advance and not recognized as revenue	—		(144.9)
Reclassification of cash received in advance to revenue as a result of performance obligations satisfied	—		137.2
Impact of divestiture of business	—		7.6
Net change	$	13.0	$	0.1


	As of July 20, 2022
Assets:
Cash and cash equivalents	$	5.5
Receivables	20.1
Allowance for doubtful accounts	(0.5)
Inventories, net	6.9
Prepaid expenses and other current assets	6.4
Buildings	6.2
Machinery and equipment	25.9
Accumulated depreciation	(17.0)
Right-of-use - Operating Leases	5.8
Goodwill and Other Intangible Assets, net	10.9
Total Assets	$	70.4

Liabilities:
Accounts payable and accrued expenses	$	36.1
Current lease obligations - Operating	1.7
Long-Term Lease Obligations - Operating	4.9
Deferred Income Taxes	0.1
Total Liabilities	$	42.7


	Trinity			OGC
	Fair Value		Amortization Period	Fair Value		Amortization Period
Cash	$	—		$	0.3
Inventories	1.9			4.5
Receivables	4.6			1.8
Prepaid expenses and other current assets	—			1.2
Property, plant, and equipment	0.3			0.5
Accounts payable and accrued expenses	(1.7)			(2.8)
Goodwill	14.2			2.4
Customer lists	12.0		13 Years	4.9		10 Years
Trade names	—			2.5		10 Years
Total net assets	$	31.3		$	15.3


	December 31, 2022		January 1, 2022
Goodwill, net	$	305.9	$	297.3
Definite-lived intangible assets, net	118.4		147.6
Indefinite-lived intangible assets	15.5		26.5
Total goodwill and other intangible assets, net	$	439.8	$	471.5


	Workplace Furnishings		Residential Building Products		Total
Balance as of January 2, 2021
Goodwill	$	168.5	$	197.0	$	365.5
Accumulated impairment losses	(72.9)		(0.1)		(73.0)
Net goodwill balance as of January 2, 2021	$	95.6	$	196.8	$	292.4

Goodwill acquired / measurement period adjustments	(6.2)		16.9		10.7
Impairment losses	(5.8)		—		(5.8)



Balance as of January 1, 2022
Goodwill	162.3		213.8		376.1
Accumulated impairment losses	(78.6)		(0.1)		(78.8)
Net goodwill balance as of January 1, 2022	$	83.6	$	213.7	$	297.3

Goodwill acquired (disposed) / measurement period adjustments	(13.6)		8.6		(5.0)
Accumulated impairment losses disposed	13.6		—		13.6


Balance as of December 31, 2022
Goodwill	148.7		222.4		371.1
Accumulated impairment losses	(65.0)		(0.1)		(65.2)
Net goodwill balance as of December 31, 2022	$	83.6	$	222.3	$	305.9


	December 31, 2022						January 1, 2022
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net

Software	$	194.4	$	122.5	$	71.9	$	196.8	$	102.1	$	94.7
Trademarks and trade names	14.3		5.9		8.4		14.3		4.6		9.7
Customer lists and other	80.2		42.1		38.1		109.6		66.4		43.3
Net definite-lived intangible assets	$	288.8	$	170.4	$	118.4	$	320.7	$	173.0	$	147.6


	2023		2024		2025		2026		2027
Amortization expense	$	25.7	$	22.5	$	20.2	$	16.8	$	11.6


	December 31, 2022		January 1, 2022
Revolving credit facility with interest at a variable rate (December 31, 2022 - 5.6%; January 1, 2022 - 1.1%)	$	89.1	$	75.0
Fixed rate notes due in 2025 with an interest rate of 4.22%	50.0		50.0
Fixed rate notes due in 2028 with an interest rate of 4.40%	50.0		50.0
Other amounts	1.3		3.2
Deferred debt issuance costs	(0.3)		(0.4)
Total debt	190.1		177.8
Less: Current maturities	1.3		3.2
Long-term debt	$	188.8	$	174.6


	December 31, 2022		January 1, 2022
Deferred Taxes
Allowance for doubtful accounts	$	0.7	$	0.5
Compensation	7.2		7.3
Inventory differences	1.2		3.1

Stock-based compensation	7.9		7.9
Accrued post-retirement benefit obligations	4.4		5.7
Vacation accrual	3.9		3.2
Warranty accrual	4.2		4.4

Tax loss and tax credit carryforwards	5.8		10.2
Capital loss carryforward	0.1		2.1
Lease liability	27.3		23.4
Payroll deferral	—		2.1
Research and development capitalization	16.3		—
Other	2.6		8.0
Total deferred tax assets	$	81.7	$	77.9
Deferred income	(5.6)		(5.0)
Goodwill and other intangible assets	(48.1)		(49.7)
Prepaid expenses	(6.6)		(6.5)
Right of use asset	(24.7)		(23.1)
Tax over book depreciation	(53.0)		(56.6)
Total deferred tax liabilities	$	(137.9)	$	(141.0)
Valuation allowance	(4.2)		(11.3)
Total net deferred tax liabilities	$	(60.4)	$	(74.3)

Long-term net deferred tax assets	0.7		0.7
Long-term net deferred tax liabilities	(61.0)		(75.0)
Total net deferred tax liabilities	$	(60.4)	$	(74.3)


	Balance at beginning of period		Charged to expenses		Balance at end of period
Year ended December 31, 2022	$	11.3	$	(7.1)	$	4.2
Year ended January 1, 2022	$	11.5	$	(0.2)	$	11.3
Year ended January 2, 2021	$	10.3	$	1.3	$	11.5


	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 December 31, 2022
Cash and cash equivalents (including money market funds) (1)	$	17.4	$	17.4	$	—	$	—
Government securities (2)	$	5.6	$	—	$	5.6	$	—
Corporate bonds (2)	$	7.2	$	—	$	7.2	$	—


Deferred stock-based compensation (4)	$	(4.7)	$	—	$	(4.7)	$	—
Put option liability (5)	$	(5.1)	$	—	$	—	$	(5.1)


Balance as of January 1, 2022
Cash and cash equivalents (including money market funds) (1)	$	52.3	$	52.3	$	—	$	—
Government securities (2)	$	5.5	$	—	$	5.5	$	—
Corporate bonds (2)	$	7.8	$	—	$	7.8	$	—
Derivative financial instruments - liability (3)	$	(1.0)	$	—	$	(1.0)	$	—
Deferred stock-based compensation (4)	$	(8.1)	$	—	$	(8.1)	$	—
Put option liability (5)	$	(5.1)	$	—	$	—	$	(5.1)


	Foreign Currency Translation Adjustment		Unrealized Gains (Losses) on Debt Securities		Pension and Post-retirement Liabilities		Derivative Financial Instruments		Accumulated Other Comprehensive Income (Loss)
Balance as of December 28, 2019	$	(2.9)	$	0.1	$	(5.8)	$	0.5	$	(8.1)
Other comprehensive income (loss) before reclassifications	1.4		0.4		(1.5)		(3.2)		(2.9)
Tax (expense) or benefit	—		(0.1)		0.3		0.8		1.0

Amounts reclassified from accumulated other comprehensive income (loss), net of tax	0.4		(0.0)		0.2		0.2		0.8
Balance as of January 2, 2021	$	(1.1)	$	0.4	$	(6.7)	$	(1.8)	$	(9.2)
Other comprehensive income (loss) before reclassifications	0.4		(0.3)		1.2		0.4		1.7
Tax (expense) or benefit	—		0.1		(0.3)		(0.1)		(0.3)

Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(0.0)		0.3		0.7		1.1
Balance as of January 1, 2022	$	(0.7)	$	0.1	$	(5.4)	$	(0.7)	$	(6.8)
Other comprehensive income (loss) before reclassifications	(2.4)		(0.9)		5.3		1.1		3.2
Tax (expense) or benefit	—		0.2		(1.3)		(0.3)		(1.3)

Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(3.3)		(0.0)		0.2		(0.0)		(3.1)
Balance as of December 31, 2022	$	(6.4)	$	(0.6)	$	(1.1)	$	0.1	$	(8.0)


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


	Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested as of December 28, 2019	22	$	38.41
Granted	174	36.78
Vested	(7)	40.77
Forfeited	(6)	37.50
Nonvested as of January 2, 2021	182	$	36.80
Granted	430	37.02
Vested	(63)	37.09
Forfeited	(5)	32.90
Nonvested as of January 1, 2022	545	$	36.98
Granted	164	43.05
Vested	(141)	36.99
Forfeited	(32)	37.75
Nonvested as of December 31, 2022	535	$	38.79


	Number of Shares	Weighted Average Exercise Price
Outstanding as of December 28, 2019	3,223	$	39.24

Exercised	(189)	29.24
Forfeited or Expired	(28)	42.38
Outstanding as of January 2, 2021	3,006	$	39.84

Exercised	(815)	35.04
Forfeited or Expired	(1)	39.77
Outstanding as of January 1, 2022	2,191	$	41.62

Exercised	(64)	33.35
Forfeited or Expired	(8)	42.65
Outstanding as of December 31, 2022	2,119	$	41.86


	Number of Shares	Weighted Average Grant-Date Fair Value
Nonvested as of January 1, 2022	956	$	9.79

Vested	(485)	9.71
Forfeited	(3)	9.88
Nonvested as of December 31, 2022	469	$	9.87


	December 31, 2022
	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Exercisable Period (years)	Aggregate Intrinsic Value
Expected to vest	466	$	39.74	6.1	$	0.0
Exercisable	1,650	$	42.46	3.8	$	0.0


	December 31, 2022		January 1, 2022
Current maturities of other long-term obligations	$	0.5	$	1.5
Other long-term liabilities	6.6		9.0
Total deferred compensation	$	7.0	$	10.5

Total fair-market value of deferred compensation	$	4.7	$	8.1