HNI CORPHNI

HNI CORP Revenue Disclosure

10-KFiled Mar 3, 20262 min read
Revenue from Contracts with Customers
Disaggregation of Revenue

Revenue from contracts with customers disaggregated by product category is as follows:
202520242023
Systems, storage, and tables$1,298.4 $1,147.3 $1,057.4 
Seating650.6 583.7 525.4 
Other (1)
215.1 157.0 157.5 
Total Workplace Furnishings2,164.1 1,888.0 1,740.3 
Residential Building Products674.9 638.4 693.7 
$2,839.0 $2,526.4 $2,434.0 

(1) The Other category consists of education-specific furnishings, architectural products, workspace accessories, and miscellaneous product lines and services.

Sales by product category are subject to similar economic factors and market conditions. See "Note 15. Reportable Segment Information" for further information about operating segments.

Contract Liabilities

The Corporation has contract liabilities consisting of customer deposits included in "Accounts payable and accrued expenses" in the Consolidated Balance Sheets and are as follows:
January 3,
2026		December 28,
2024
Contract liabilities - Customer deposits$102.9 $42.1 

Approximately $68.1 million of the increase in customer deposits in the current year is driven by the acquisition of Steelcase. See "Note 4. Acquisitions and Divestitures" for further information.
Contract liabilities for customer deposits paid to the Corporation prior to the satisfaction of performance obligations are recognized as revenue upon satisfaction of the performance obligations. Revenue recognized during the years ended January 3, 2026 and December 28, 2024 related to contract liability balances at the beginning of each year was $42.1 million and $35.1 million, respectively.
In addition to trade receivables, the Corporation has other assets consisting of funds paid up-front to certain workplace furnishings dealers in exchange for their multi-year commitment to market and sell the Corporation’s products. These assets are amortized over the term of the contracts and recognized as a reduction of revenue and are as follows in the Consolidated Balance Sheets:

January 3,
2026		December 28,
2024
Current - Prepaid expenses and other current assets$3.1 $3.2 
Long Term - Other Assets$26.3 $26.2 

Historical Timeline

Fiscal YearFiled
2026Mar 3, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Mar 1, 2022
2021Mar 2, 2021
2019Feb 25, 2020
2018Feb 26, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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