HNI CORP
For the period ended Jun 29, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Jul 30, 2024
HNI$47.26-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-30; filed 2024-04-30.
0000048287-24-000097
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-29; filed 2024-07-30.
0000048287-24-000161
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 58 previous paragraphs and 89 current paragraphs.
32 unchanged; 24 reworded; 29 added; 1 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
In the current period, the Corporation maintained focus on its strategic priorities. In workplace furnishings, ongoing integration of the Kimball International business and related synergies, expanded utilization of the new factory in Mexico, and the recently announced manufacturing facility optimization initiative are enabling the segment's profit transformation plan. The residential building products business continued to navigate cyclical housing market weakness and inconsistent demand trends but remained solidly profitable and committed to investing in capabilities to support long-term growth.
Current report
Results of Operations - Three Months Ended
Current report
Consolidated net sales for the second quarter of 2024 increased 10.7 percent compared to the same quarter last year. The change was driven by $80.5 million of favorable impact from the acquisition of Kimball International in the second quarter of 2023, partially offset by lower volume in the legacy HNI businesses and $3.4 million of unfavorable impact from the divestiture of Poppin in the third quarter of 2023.
Current report
Gross profit as a percentage of net sales increased 360 basis points in the second quarter of 2024 compared to the same quarter last year, driven by improved operational productivity and the impact of the Kimball International acquisition.
Current report
Selling and administrative expenses ("SG&A") as a percentage of net sales decreased 440 basis points in the second quarter of 2024 compared to the same quarter last year. The decrease was driven by $31.3 million of non-repeating Kimball International acquisition-related fees and expenses incurred in the prior-year quarter and improved freight and distribution productivity, partially offset by lower volume in the legacy HNI businesses and elevated healthcare costs.
Current report
Restructuring and Impairment Charges
Current report
In the second quarter of 2024, the Corporation recorded charges of $2.0 million primarily in connection with a workplace furnishings factory optimization initiative. Charges of $8.1 million were incurred in the same quarter last year mainly related to the exit of the Poppin business.
Current report
Operating Income (Loss)
Current report
Results of Operations - Six Months Ended
Current report
Net Sales
Current report
Gross Profit
Current report
Selling and Administrative Expenses
Current report
Restructuring and Impairment Charges
Current report
In the first six months of 2024, the Corporation recorded charges of $2.1 million primarily in connection with a workplace furnishings factory optimization initiative. Charges of $8.1 million were incurred in the same period last year mainly related to the exit of the Poppin business.
Current report
In the first six months of 2024, operating margin increased 660 basis points compared to the same period last year, driven by improved net productivity, favorable price-cost, the impact of the acquisition of Kimball International, non-repeating acquisition-related costs incurred in the prior-year period, and lower restructuring and impairment charges incurred in the current-year period, partially offset by lower volume in the legacy HNI businesses and higher variable compensation.
Current report
Interest Expense, Net
Current report
Income Taxes
Current report
The Corporation’s income tax provision for the first six months of 2024 was $14.3 million of expense on income before taxes of $68.0 million, or an effective tax rate of 21.0 percent. For the first six months of 2023, the Corporation’s income tax expense was $6.0 million on a loss before taxes of $5.3 million, or an effective tax rate of (113.1) percent. The variation in the effective tax rates was primarily due to lower pre-tax income in the prior-year period impacted by non-deductible transaction costs related to the acquisition of Kimball International in the prior year.
Current report
Net income attributable to the Corporation was $53.7 million, or $1.11 per diluted share, in the first six months of 2024, compared to net loss of $11.3 million, or $0.27 per diluted share, in the first six months of 2023.
Current report
Three Months Ended
Current report
Second quarter 2024 net sales for the workplace furnishings segment increased 16.3 percent compared to the same quarter last year. The acquisition of Kimball International in the second quarter of 2023 increased net sales by $80.5 million compared to the prior-year quarter, while the divestiture of Poppin in the third quarter of 2023 decreased year-over-year sales by $3.4 million. Adjusting for the impact of these transactions, segment sales decreased 2.4 percent year-over-year, driven by lower volume in the contract office customer channel.
Current report
Operating income as a percentage of net sales in the second quarter of 2024 improved 750 basis points compared to the same period in 2023. The increase was driven by improved net productivity, favorable impacts from the Kimball International acquisition and the divestiture of Poppin, $10.3 million of non-repeating acquisition-related costs incurred in the prior-year quarter, and lower restructuring and impairment charges in the current quarter.
Current report
Six Months Ended
Current report
Three Months Ended
Current report
Operating income as a percentage of net sales increased 350 basis points in the second quarter of 2024 compared to the same quarter last year driven by improved net productivity, favorable product mix, and lower core SG&A, partially offset by lower volume.
Current report
Six Months Ended
Current report
Operating cash flows were $47.0 million for the first six months of 2024 compared $39.8 million for the first six months of 2023. In the prior-year period, net income included costs associated with the acquisition of Kimball International, which did not recur in the current-year period. Additionally, the net income benefits from owning Kimball International for the entire period combined with improved financial performance in the remaining HNI businesses, drove improvement to net income. The increase in income was mostly offset by higher usage of working capital. Working capital was a use of cash during the current-year period. Historically, the Corporation experiences seasonal cash usage during the first half of the fiscal year. The current year working capital cash usage was consistent with normal historical patterns. The comparable prior-year period did not follow the normal seasonal pattern due to the impacts and timing of the acquisition of Kimball International.
Current report
Acquisition - Investing activities in the first six months of 2023 included $369.8 million of cash outflows related to the acquisition of Kimball International. See "Note 3. Acquisitions and Divestitures" in the Notes to the Condensed Consolidated Financial Statements for further information.
Current report
Additionally, in the second quarter of 2023, the Corporation borrowed $300 million in connection with a term loan agreement entered into on March 31, 2023, as amended on May 25, 2023, to support funding of the acquisition of Kimball International. In the second quarter of 2024, the Corporation executed a $50 million early repayment of the outstanding principal balance on this term loan. The repayment was financed using borrowings from the revolving credit facility. As a result, no additional principal amortization is currently due to be repaid for the term loan prior to March 2027. See "Note 7. Debt" in the Notes to Condensed Consolidated Financial Statements for further information.
Removed paragraphs (1)
Previous report
Operating activities were a use of $4.3 million of cash in the first three months of 2024 compared to a source of $17.3 million of cash in the first three months of 2023. Working capital seasonal cash usage was higher in the current period versus the prior period driven by reductions in accrued expenses and higher receivables. The higher usage of working capital was partially offset by higher net income in the current period.
Reworded paragraphs (24)
Previous wording
The following discussion of the Corporation’s historical results of operations and of its liquidity and capital resources should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements of the Corporation and related notes included elsewhere in this Quarterly Report on Form 10-Q and with the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. All dollar amounts presented are in millions, except per share data or where otherwise indicated. Amounts may not sum due to rounding. Statements that are not historical are forward-looking and involve risks and uncertainties. See "Forward-Looking Statements" at the end of this section for further information.
Current wording
The following discussion of the Corporation’s historical results of operations and of its liquidity and capital resources should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements of the Corporation and related notes included elsewhere in this Quarterly Report on Form 10-Q and with the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. All dollar amounts presented are in millions, except per share data or where otherwise indicated. Amounts may not sum due to rounding. Statements that are not historical are forward-looking and involve risks and uncertainties. See "Forward-Looking Statements" at the end of this section for further information about forward-looking statements.
Previous wording
Consolidated net sales for the first quarter of 2024 were $588.0 million, an increase of 22.7 percent compared to net sales of $479.1 million in the prior-year quarter. The change was due to a 46.8 percent increase in net sales in the workplace furnishings segment, partially offset by a 17.4 percent decrease in net sales in the residential building products segment. The acquisition of Kimball International on June 1, 2023 increased year-over-year sales by $147.5 million. See "Note 3. Acquisitions and Divestitures" in the Notes to Condensed Consolidated Financial Statements for more information about the Kimball International acquisition, which affects the comparability of results between the current and prior-year periods.
Current wording
Consolidated net sales for the second quarter of 2024 were $623.7 million, an increase of 10.7 percent compared to net sales of $563.5 million in the prior-year quarter. The change was due to a 16.3 percent increase in net sales in the workplace furnishings segment, partially offset by a 4.6 percent decrease in net sales in the residential building products segment. The acquisition of Kimball International in the second quarter of 2023 increased year-over-year sales by $80.5 million, and the divestiture of Poppin in the third quarter of 2023 decreased year-over-year sales by $3.4 million. See "Note 3. Acquisitions and Divestitures" in the Notes to Condensed Consolidated Financial Statements for more information about the Kimball International acquisition, which affects the comparability of results between the current and prior-year periods.
Previous wording
Net income attributable to the Corporation in the first quarter of 2024 was $17.7 million compared to net income of $1.6 million in the first quarter of 2023. The year-over-year increase in net income was driven by favorable price-cost, improved net productivity, favorable net impacts of the Kimball International acquisition, lower core selling and administrative expenses ("SG&A"), and a lower effective tax rate, partially offset by lower volume in the legacy HNI businesses (excluding Kimball International) and higher variable compensation.
Current wording
Net income attributable to the Corporation in the second quarter of 2024 was $36.0 million compared to a net loss of $12.8 million in the second quarter of 2023. The year-over-year increase in net income was driven by improved net productivity, non-repeating acquisition-related costs incurred in the prior-year quarter, and favorable net impacts of the Kimball International acquisition, partially offset by lower volume in the legacy HNI businesses (excluding Kimball International) and elevated healthcare costs.
Previous wording
In the first quarter of 2024, operating margin increased 370 basis points compared to the same quarter last year, driven by favorable price-cost, improved net productivity, favorable impact of the acquisition of Kimball International, $3.4 million of non-repeating Kimball International acquisition-related fees and expenses incurred in the prior-year quarter, and lower legacy core SG&A, partially offset by lower volume in the legacy HNI businesses and higher variable compensation.
Current wording
In the second quarter of 2024, operating margin increased 920 basis points compared to the same quarter last year driven by $31.3 million of non-repeating Kimball International acquisition-related fees and expenses incurred in the prior-year quarter, improved net productivity, favorable impact of the acquisition of Kimball International, and lower restructuring and impairment charges incurred in the current quarter, partially offset by lower volume in the legacy HNI businesses and elevated healthcare costs.
Previous wording
Interest expense, net for the first quarter of 2024 was $7.6 million, compared to $2.7 million in the same quarter last year, driven by higher average outstanding borrowings resulting from indebtedness incurred to fund the acquisition of Kimball International and higher interest rates in the current period on the Corporation's variable-rate revolving debt obligations.
Current wording
Interest expense, net for the second quarter of 2024 was $7.4 million, compared to $5.5 million in the same quarter last year, driven by higher average outstanding borrowings resulting from indebtedness incurred to fund the acquisition of Kimball International and higher interest rates in the current period on the Corporation's variable-rate revolving debt obligations.
Previous wording
The Corporation’s income tax provision for the first quarter of 2024 was $4.3 million of expense on income before taxes of $22.0 million, or an effective tax rate of 19.6 percent. For the first quarter of 2023, the Corporation’s income tax expense was $2.2 million on income before taxes of $3.8 million, or an effective tax rate of 58.4 percent. The Corporation's effective tax rate was lower in the current year period driven by favorable equity-based compensation adjustments and the impact of higher income on certain tax attributes. Additionally, the prior-year quarter included nondeductible Kimball International acquisition costs, which did not recur in the current-year quarter.
Current wording
The Corporation’s income tax provision for the second quarter of 2024 was $10.0 million of expense on income before taxes of $46.0 million, or an effective tax rate of 21.7 percent. For the second quarter of 2023, the Corporation’s income tax provision was $3.8 million of expense on a loss before taxes of $9.0 million, or an effective tax rate of (41.8) percent. The variation in the effective tax rates was primarily due to lower pre-tax income in the prior-year quarter impacted by non-deductible transaction costs related to the acquisition of Kimball International in the prior year.
Previous wording
Net Income Attributable to HNI Corporation
Current wording
Net Income (Loss) Attributable to HNI Corporation
Previous wording
Net income attributable to the Corporation was $17.7 million, or $0.37 per diluted share in the first quarter of 2024, compared to net income of $1.6 million, or $0.04 per diluted share in the first quarter of 2023.
Current wording
Net income attributable to the Corporation was $36.0 million, or $0.75 per diluted share, in the second quarter of 2024, compared to net loss of $12.8 million, or $0.30 per diluted share, in the second quarter of 2023.
Previous wording
Consolidated net sales for the first quarter of 2024 increased 22.7 percent compared to the same quarter last year. The change was driven by $147.5 million of favorable impact from the acquisition of Kimball International in the second quarter of 2023, as well as price realization in both the workplace furnishings and residential building products segments. These factors were partially offset by lower volume in the legacy HNI businesses due to continued softness in macroeconomic conditions impacting the Corporation's applicable markets.
Current wording
Consolidated net sales for the first six months of 2024 increased 16.2 percent compared to the same period last year. The change was driven by $228.0 million of favorable impact from the acquisition of Kimball International in the second quarter of 2023, as well as price realization in both the workplace furnishings and residential building products segments. These factors were partially offset by lower volume in the legacy HNI businesses and $3.4 million of unfavorable impact from the divestiture of Poppin in the third quarter of 2023.
Previous wording
Gross profit as a percentage of net sales increased 320 basis points in the first quarter of 2024 compared to the same quarter last year, driven by favorable price-cost, improved net productivity, and the impact of the Kimball International acquisition, partially offset by lower volume in the legacy HNI businesses. Favorable price-cost was attributable to the Corporation’s ability to implement price increases over the past several quarters in response to inflationary pressures.
Current wording
Gross profit as a percentage of net sales increased 340 basis points in the first six months of 2024 compared to the same period last year, driven by improved operational productivity, favorable price-cost, and the impact of the Kimball International acquisition, partially offset by lower volume in the legacy HNI businesses.
Previous wording
Selling and administrative expenses as a percentage of net sales decreased 50 basis points in the first quarter of 2024 compared to the same quarter last year. The decrease was driven by $3.4 million of non-repeating Kimball International acquisition-related fees and expenses incurred in the prior-year quarter, dilution from price realization, lower legacy core SG&A, and Kimball International acquisition-related administrative cost synergies, partially offset by lower volume in the legacy HNI businesses and higher variable compensation.
Current wording
Selling and administrative expenses as a percentage of net sales decreased 250 basis points in the first six months of 2024 compared to the same period last year. The decrease was driven by $34.7 million of non-repeating Kimball International acquisition-related fees and expenses incurred in the prior-year period and favorable impacts from the acquisition of Kimball International, partially offset by lower volume in the legacy HNI businesses and higher variable compensation.
Previous wording
First quarter 2024 net sales for the workplace furnishings segment increased 46.8 percent compared to the same quarter last year. The acquisition of Kimball International in the second quarter of 2023 increased net sales by $147.5 million compared to the prior-year quarter. Excluding the effect of this transaction, segment sales decreased 2.5 percent year-over-year, driven by lower volume in the contract office furniture customer segment, partially offset by increased volume with small to medium-sized customers and price realization.
Current wording
Net sales for the first six months of 2024 for the workplace furnishings segment increased 29.1 percent compared to the same period last year. The acquisition of Kimball International in the second quarter of 2023 increased net sales by $228.0 million compared to the prior-year period, while the divestiture of Poppin in the third quarter of 2023 decreased year-over-year sales by $3.4 million. Adjusting for the impact of these transactions, segment sales decreased 2.4 percent year-over-year, driven by lower volume in the contract office customer channel, partially offset by increased volume with small to medium-sized customers and price realization.
Previous wording
Operating income as a percentage of net sales in the first quarter of 2024 improved 730 basis points compared to the same period in 2023. The increase was driven by favorable price-cost, improved net productivity, favorable impacts from the Kimball International acquisition, and lower legacy core SG&A. These factors were partially offset by lower volume in the legacy HNI workplace businesses and higher variable compensation.
Current wording
Operating income as a percentage of net sales in the first six months of 2024 improved 710 basis points compared to the same period in 2023. The increase was driven by improved net productivity, impacts from the Kimball International acquisition, favorable price-cost, non-repeating acquisition-related costs incurred in the prior-year period, and lower restructuring and impairment charges in the current-year period. These factors were partially offset by lower volume in the legacy HNI workplace businesses and higher variable compensation.
Previous wording
First quarter 2024 net sales for the residential building products segment decreased 17.4 percent compared to the same quarter last year. The decline was driven by lower volume in both the existing home and new construction channel. Slower demand from a continued soft housing market and reduced home remodeling activity was partially offset by price realization versus the prior-year quarter.
Current wording
Second quarter 2024 net sales for the residential building products segment decreased 4.6 percent compared to the same quarter last year. The decline was primarily driven by lower volume in the existing home channel. Demand pressure from a soft housing market and reduced home remodeling activity was partially offset by price realization versus the prior-year quarter.
Previous wording
Operating profit as a percentage of net sales decreased 120 basis points in the first quarter of 2024 compared to the same quarter last year driven by lower volume, partially offset by improved net productivity, favorable price-cost, lower variable compensation, and lower core SG&A.
Current wording
Operating income as a percentage of net sales in the first six months of 2024 increased 90 basis points compared to the same period last year driven by improved net productivity, favorable price-cost, favorable product mix, lower variable compensation, and lower core SG&A, partially offset by lower volume.
Previous wording
Cash, cash equivalents, and short-term investments, coupled with cash flow from future operations, borrowing capacity expected to be available under the Corporation's existing credit agreements, and the ability to access capital markets, are expected to be adequate to fund operations and satisfy cash flow needs for at least the next twelve months. Based on current earnings before interest, taxes, depreciation, and amortization, the Corporation can access the full $425 million of borrowing capacity available under its revolving credit facility, which includes the $74 million currently outstanding, and maintain compliance with applicable covenants.
Current wording
Cash, cash equivalents, and short-term investments, coupled with cash flow from future operations, borrowing capacity expected to be available under the Corporation's existing credit agreements, and the ability to access capital markets, are expected to be adequate to fund operations and satisfy cash flow needs for at least the next twelve months. Based on current performance, the Corporation can access the full $425 million of borrowing capacity available under its revolving credit facility, which includes the $114 million currently outstanding, and maintain compliance with applicable covenants.
Previous wording
Capital Expenditures - Capital expenditures, including capitalized software, for the first three months of 2024 were $11.2 million compared to $20.0 million in the same period last year. In the prior-year period, the Corporation had higher expenditures related to a manufacturing facility expansion, which did not recur in the current period. The current year expenditures are primarily focused on machinery, equipment, and tooling required to support new products, continuous improvements, and cost savings initiatives in manufacturing processes. Additionally, in support of the Corporation’s long-term strategy to create effortless winning experiences for customers, the Corporation continues to invest in technology and digital assets. For the full year 2024, capital expenditures are expected to be approximately $85 to 95 million.
Current wording
Capital Expenditures - Capital expenditures, including capitalized software, for the first six months of 2024 were $28.7 million compared to $41.2 million in the same period last year. In the prior-year period, the Corporation had higher expenditures related to a manufacturing facility expansion, which did not recur in the current period. The current year expenditures are primarily focused on machinery, equipment, and tooling required to support new products, continuous improvements, and cost savings initiatives in manufacturing processes. Additionally, in support of the Corporation’s long-term strategy to create effortless winning experiences for customers, the Corporation continues to invest in technology and digital assets. For the full year 2024, capital expenditures are expected to be approximately $75 to 85 million.
Previous wording
Debt - The Corporation maintains a revolving credit facility as the primary source of committed funding from which the Corporation finances its planned capital expenditures, strategic initiatives, and seasonal working capital needs. Cash flows included in financing activities for the current and prior periods presented represent periodic borrowings and repayments under the revolving credit facility. See "Note 7. Debt" in the Notes to Condensed Consolidated Financial Statements for further information.
Current wording
Debt - The Corporation maintains a revolving credit facility as the primary source of committed funding from which the Corporation finances its planned capital expenditures, strategic initiatives, and seasonal working capital needs. Cash flows included in financing activities for the current and prior periods presented represent periodic borrowings and repayments under the revolving credit facility.
Previous wording
During the first quarter of 2024, the Board of Directors declared the regular quarterly cash dividend on February 13, 2024. The dividend was paid on March 6, 2024, to shareholders of record as of February 26, 2024.
Current wording
During the second quarter of 2024, the Board of Directors declared the regular quarterly cash dividend on May 13, 2024. The dividend was paid on June 12, 2024, to shareholders of record as of May 24, 2024.
Previous wording
Stock Repurchase - The Corporation’s capital strategy related to stock repurchase is focused on offsetting the dilutive impact of issuances for various compensation related matters. The Corporation also may elect to opportunistically purchase additional shares based on excess cash generation and/or share price considerations. During the three months ended March 30, 2024, the Corporation spent $2.6 million to repurchase shares of its common stock. As of March 30, 2024, $231.0 million was authorized and available for repurchase of shares by the Corporation. See "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity" in the Notes to Condensed Consolidated Financial Statements for further information.
Current wording
Stock Repurchase - The Corporation’s capital strategy related to stock repurchase is focused on offsetting the dilutive impact of issuances of common stock pursuant to equity awards granted for various compensation-related matters. The Corporation also may elect to opportunistically purchase additional shares based on excess cash generation and/or share price considerations. During the six months ended June 29, 2024, the Corporation spent $13.4 million to repurchase shares of its common stock. As of June 29, 2024, $220.0 million was authorized and available for repurchase of shares by the Corporation. See "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity" in the Notes to Condensed Consolidated Financial Statements for further information.
Previous wording
Sales of Stock - The Corporation records cash flows received from the sale of its common stock held in treasury, primarily in connection with stock option exercises and the HNI Corporation Members’ Stock Purchase Plan. See "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity" and "Note 12. Stock-Based Compensation" in the Notes to Condensed Consolidated Financial Statements for further information.
Current wording
Sales of Stock - The Corporation records cash flows received from the sale of its common stock held in treasury, primarily in connection with stock option exercises and the HNI Corporation Members’ Stock Purchase Plan. See "Note 10. Accumulated
Previous wording
Various commitments and obligations associated with ongoing business and financing activities will result in cash payments in future periods. A summary of the amounts and estimated timing of these future cash payments was provided in the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no material changes outside the ordinary course of business in the Corporation’s contractual obligations or the estimated timing of the future cash payments during the first three months of 2024.
Current wording
Various commitments and obligations associated with ongoing business and financing activities will result in cash payments in future periods. A summary of the amounts and estimated timing of these future cash payments is presented in the Corporation’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023. There were no material changes outside the ordinary course of business in the Corporation’s contractual obligations or the estimated timing of the future cash payments during the first six months of 2024.
Previous wording
In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances disclosures regarding segment performance, including information about the chief operating decision maker and measures used to assess performance. The ASU becomes effective for the Corporation beginning with its annual period ending December 2024, and interim periods beginning with first quarter of 2025. The ASU will not impact the financial condition, results of operations, or cash flows of the Corporation. The
Current wording
In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances disclosures regarding segment performance, including information about the chief operating decision maker and measures used to assess performance. The ASU becomes effective for the Corporation beginning with its annual period ending December 2024, and interim periods beginning with first quarter of 2025. The ASU will not impact the financial condition, results of operations, or cash flows of the Corporation. The Corporation is currently evaluating the impact of this guidance on the notes to the consolidated financial statements, and expects additional disclosures will be required on adoption.
Previous wording
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. 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 becomes effective for the Corporation beginning with its annual period ending December 2025. The ASU will not impact the financial condition, results of operations, or cash flows of the Corporation. The Corporation is currently evaluating the impact on the notes to the consolidated financial statements, and expects additional disclosures will be required on adoption.
Current wording
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. 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 operations. Finally, the ASU removes the requirement of certain disclosures related to unrecognized tax benefits. The ASU becomes effective for the Corporation beginning with its annual period ending December 2025. The ASU will not impact the financial condition, results of operations, or cash flows of the Corporation. The Corporation is currently evaluating the impact of this guidance on the notes to the consolidated financial statements, and expects additional disclosures will be required on adoption.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Interest expense, net for the first six months of 2024 was $15.1 million, compared to $8.2 million in the same period last year, driven by higher average outstanding borrowings resulting from indebtedness incurred to fund the acquisition of Kimball International and higher interest rates in the current period on the Corporation's variable-rate revolving debt obligations.
Current report — wording carried from elsewhere
Net Income (Loss) Attributable to HNI Corporation
Current report — wording carried from elsewhere
Net sales for the first six months of 2024 for the residential building products segment decreased 11.6 percent compared to the same period last year. The decline was driven by lower volume in both the existing home and new construction channel. Demand pressure from a soft housing market and reduced home remodeling activity was partially offset by price realization versus the prior-year period.
Current report — wording carried from elsewhere
Other Comprehensive Income (Loss) and Shareholders’ Equity" and "Note 12. Stock-Based Compensation" in the Notes to Condensed Consolidated Financial Statements for further information.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Corporation is currently evaluating the impact on the notes to the consolidated financial statements, and expects additional disclosures will be required on adoption.