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Stock-Based Compensation | 12 Months Ended
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Dec. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Under the Corporation’s 2017 Stock-Based Compensation Plan (the "Plan"), effective May 9, 2017, the Corporation may award options to purchase shares of the Corporation’s common stock and grant other stock awards to executives, managers, and key personnel. Upon shareholder approval of the Plan in May 2017, no future awards were granted under the Corporation’s 2007 Stock-Based Compensation Plan, but all outstanding awards previously granted under that plan shall remain outstanding in accordance with their terms. As of December 30, 2017, there were approximately 3.4 million shares available for future issuance under the Plan. The Plan is administered by the Human Resources and Compensation Committee of the Board. Restricted stock units awarded under the Plan are expensed ratably over the vesting period of the awards. Stock options awarded to members under the Plan must be at exercise prices equal to or exceeding the fair market value of the Corporation’s common stock on the date of grant. Stock options are generally subject to four-year cliff vesting and must be exercised within 10 years from the date of grant. The Corporation measures the cost of employee services in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes cost over the requisite service period. Compensation cost charged against operations for the Plan and the 2017 MSPP described in "Note 10. Accumulated Other Comprehensive Income (Loss) and Shareholders' Equity" in the Notes to Consolidated Financial Statements was as follows (in thousands):
| December 30, 2017 |  | December 31, 2016 |  | January 2, 2016
Compensation cost | $ | 7,750 |  |  | $ | 8,141 |  |  | $ | 9,097 |
The total income tax benefit recognized in the income statement for share-based compensation arrangements was as follows (in thousands):
| December 30, 2017 |  | December 31, 2016 |  | January 2, 2016
Income tax benefit | $ | 2,581 |  |  | $ | 2,809 |  |  | $ | 3,086 |
The stock-based compensation expense for the following year-end dates were estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions by grant year:
| December 30, 2017 |  | December 31, 2016 |  | January 2, 2016
Expected term | 6 years |  |  | 6 years |  |  | 6 years |
Expected volatility (weighted-average) | 38.07 | % |  | 38.96 | % |  | 43.54 | %
Expected dividend yield (weighted-average) | 2.36 | % |  | 3.30 | % |  | 1.94 | %
Risk-free interest rate (weighted-average) | 2.17 | % |  | 1.41 | % |  | 1.69 | %
Expected volatilities were based on historical volatility as the Corporation does not feel that future volatility over the expected term of the options is likely to differ from the past. The Corporation used a calculation method based on daily frequency for the prior six years. The Corporation used the current dividend yield as there are no plans to substantially increase or decrease its dividends. The Corporation used historical exercise experience to determine the expected term. The risk-free interest rate was selected based on yields from treasury securities as published by the Federal Reserve equal to the expected term of the options. The following table summarizes the changes in outstanding stock options:
| Number of Shares |  | Weighted Average Exercise Price
Outstanding as of January 3, 2015 | 3,335,445 |  |  | $ | 29.93 |
Granted | 350,038 |  |  | 51.54 |
Exercised | (302,635 | ) |  | 30.22 |
Forfeited or Expired | (24,525 | ) |  | 39.14 |
Outstanding as of January 2, 2016 | 3,358,323 |  |  | $ | 32.09 |
Granted | 877,277 |  |  | 32.18 |
Exercised | (609,663 | ) |  | 30.52 |
Forfeited or Expired | (121,602 | ) |  | 52.24 |
Outstanding as of December 31, 2016 | 3,504,335 |  |  | $ | 31.68 |
Granted | 537,795 |  |  | 46.61 |
Exercised | (446,817 | ) |  | 25.55 |
Forfeited or Expired | (33,029 | ) |  | 40.81 |
Outstanding as of December 30, 2017 | 3,562,284 |  |  | $ | 34.63 |
A summary of the Corporation’s non-vested stock options and changes during the year are presented below:
| Shares |  | Weighted Average Grant-Date Fair Value
Non-vested as of December 31, 2016 | 2,162,157 |  |  | $ | 11.12 |
Granted | 537,795 |  |  | 14.41 |
Vested | (731,085 | ) |  | 11.02 |
Forfeited | (33,029 | ) |  | 12.19 |
Non-vested as of December 30, 2017 | 1,935,838 |  |  | $ | 12.05 |
As of December 30, 2017, there was $3.5 million of unrecognized compensation cost related to non-vested stock option awards, which the Corporation expects to recognize over a weighted-average period of 1.2 years. Information about stock options expected to vest or currently exercisable is as follows:
| December 30, 2017
| Number |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Service Period (years) |  | Aggregate Intrinsic Value ($000s)
Expected to vest | 1,819,673 |  |  | $ | 39.31 |  |  | 7.8 |  | $ | 5,900 |
Exercisable | 1,626,446 |  |  | $ | 28.97 |  |  | 3.7 |  | $ | 16,440 |
Other information for the last three years is as follows (in thousands):
| December 30, 2017 |  | December 31, 2016 |  | January 2, 2016
Total fair value of shares vested | $ | 8,057 |  |  | $ | 7,206 |  |  | $ | 5,554 |
Total intrinsic value of options exercised | $ | 7,270 |  |  | $ | 11,985 |  |  | $ | 6,412 |
Cash received from exercise of stock options | $ | 11,418 |  |  | $ | 18,609 |  |  | $ | 9,145 |
Tax benefit realized from exercise of stock options | $ | 2,423 |  |  | $ | 4,142 |  |  | $ | 2,111 |
Weighted-average grant-date fair value of options granted | $ | 14.41 |  |  | $ | 8.80 |  |  | $ | 18.45 |
The Corporation has occasionally issued restricted stock units ("RSUs") to executives, managers, and key personnel. The RSUs vest at the end of three years after the grant date. No dividends are accrued on the RSUs. The share-based compensation expense associated with the RSUs is based on the quoted market price of HNI Corporation shares on the date of grant less the discounted present value of dividends not received on the shares and is amortized using the straight-line method from the grant date through the vesting date. The following table summarizes the changes in outstanding RSUs:
| Number of Shares |  | Weighted-Average Grant Date Fair Value
Outstanding as of January 3, 2015 | 26,026 |  |  | $ | 27.76 |
Granted | 23,000 |  |  | 51.54 |
Vested | (10,526 | ) |  | 21.19 |
Forfeited | — |  |  | — |
Outstanding as of January 2, 2016 | 38,500 |  |  | $ | 43.77 |
Granted | 25,000 |  |  | 32.06 |
Vested | — |  |  | — |
Forfeited | (3,000 | ) |  | 51.54 |
Outstanding as of December 31, 2016 | 60,500 |  |  | $ | 38.54 |
Granted | — |  |  | — |
Vested | (18,500 | ) |  | 35.36 |
Forfeited | (5,000 | ) |  | 51.54 |
Outstanding as of December 30, 2017 | 37,000 |  |  | $ | 38.38 |
As of December 30, 2017, there was $0.3 million of unrecognized compensation cost related to RSUs, which the Corporation expects to recognize over a weighted-average period of 0.7 year. The total value of shares vested was as follows (in thousands):
| 2017 |  |  | 2016 |  |  | 2015 |
Value of shares vested | $ | 654 |  |  | $ | — |  |  | $ | 223 |
The following table details deferred compensation, which is a combination of cash and stock, and the affected line item in the Consolidated Balance Sheets where deferred compensation is presented (in thousands):
| December 30, 2017 |  | December 31, 2016
Current maturities of other long-term obligations | $ | 719 |  |  | $ | 876 |
Other long-term liabilities | 11,581 |  |  | 15,104 |
Total deferred compensation | $ | 12,300 |  |  | $ | 15,980 |
Total fair-market value of deferred compensation | $ | 8,885 |  |  | $ | 12,203 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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