Accumulated Other Comprehensive Income (Loss) and Shareholders’ Equity

The following table summarizes the components of accumulated other comprehensive income (loss) and the changes in accumulated other comprehensive income (loss) (in thousands):



	Foreign Currency Translation Adjustment			Unrealized Gains (Losses) on Marketable Securities			Pension and Post-retirement Liabilities			Derivative Financial Instruments			Accumulated Other Comprehensive Income (Loss)
Balance as of January 3, 2015	$	2,223		$	37		$	(6,763	)	$	(872	)	$	(5,375	)
Other comprehensive income (loss) before reclassifications	(1,901		)	(60		)	1,975			(1,188		)	(1,174		)
Tax (expense) or benefit	—			21			(718		)	433			(264		)
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—			—			1,627			1,627
Balance as of January 2, 2016	$	322		$	(2	)	$	(5,506	)	$	—		$	(5,186	)
Other comprehensive income (loss) before reclassifications	(1,510		)	(158		)	499			1,317			148
Tax (expense) or benefit	—			55			(160		)	(485		)	(590		)
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—			—			628			628
Balance as of December 31, 2016	$	(1,188	)	$	(105	)	$	(5,167	)	$	1,460		$	(5,000	)
Other comprehensive income (loss) before reclassifications	1,219			(6		)	(733		)	714			1,194
Tax (expense) or benefit	—			(21		)	270			(263		)	(14		)
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—			—			209			209
Balance as of December 30, 2017	$	31		$	(132	)	$	(5,630	)	$	2,120		$	(3,611	)

Amounts in parentheses indicate reductions to equity.

Interest Rate Swap

In March 2016, the Corporation entered in to an interest rate swap transaction to hedge $150 million of outstanding variable rate revolver borrowings against future interest rate volatility. Under the terms of the interest rate swap, the Corporation pays a fixed rate of 1.29 percent and receives one month LIBOR on a $150 million notational value expiring January 2021. As of December 30, 2017, the fair value of the Corporation's interest rate swap was an asset of $3.4 million, which is reflected in "Other Assets" in the Consolidated Balance Sheets. The change in value of the interest rate swap is reported net of tax as $2.1 million in "Accumulated other comprehensive income (loss)" in the Consolidated Balance Sheets.

The following table details the reclassifications from accumulated other comprehensive income (loss) (in thousands):



Details about Accumulated Other Comprehensive Income (Loss) Components	Affected Line Item in the Statement Where Net Income is Presented	2017			2016			2015
Derivative financial instruments
Interest rate swap	Interest income or (expense)	$	(330	)	$	(993	)	$	—
	Tax (expense) or benefit	121			365			—
	Net of tax	$	(209	)	$	(628	)	$	—

Diesel hedge	Selling and administrative expenses	$	—		$	—		$	(2,562	)
	Tax (expense) or benefit	—			—			935
	Net of tax	$	—		$	—		$	(1,627	)

Amounts in parentheses indicate reductions to profit.

During 2017, shareholders approved the 2017 Equity Plan for Non-Employee Directors of HNI Corporation (the "2017 Director Plan") to replace the expired 2007 Equity Plan for Non-Employee Directors of HNI Corporation (the "2007 Director Plan" and together with the 2017 Director Plan, the "Director Plans"). Under the 2017 Director Plan, 300,000 shares of common stock were registered for issuance to participating Directors. After approval of the 2017 Director Plan, no awards were granted under the 2007 Director Plan. The 2017 Director Plan permits the Corporation to issue to its non-employee directors options to purchase shares of Corporation common stock, restricted stock or restricted stock units of the Corporation, and awards of Corporation common stock. The 2017 Director Plan also permits non-employee directors to elect to receive all or a portion of their annual retainers and other compensation in the form of shares of Corporation common stock. Common stock was issued under the Director Plans as follows:



	2017	2016	2015
Director Plan issued common stock	27,196	24,352	20,146

Dividend

Cash dividends declared and paid per share for each year were as follows (in dollars):



	2017		2016		2015
Common shares	$	1.130	$	1.090	$	1.045

During 2017, shareholders approved the HNI Corporation Members' Stock Purchase Plan (the "2017 MSPP") to replace the expired 2007 Members' Stock Purchase Plan (the "2007 MSPP" and together with the 2017 MSPP, the "MSPPs"). Under the 2017 MSPP, 800,000 shares of common stock were registered for issuance to participating members. After approval of the 2017 MSPP, no awards were granted under the 2007 MSPP. Under the 2017 MSPP, rights to purchase stock are granted on a quarterly basis to all participating members who customarily work 20 hours or more per week and for five months or more in any calendar year. The price of the stock purchased under the MSPP is 85 percent of the closing price on the exercise date. No member may purchase stock under the MSPP in an amount which exceeds a maximum fair value of $25,000 in any calendar year. The following table provides the details of stock under the MSPPs:



	2017		2016		2015
Shares of common stock issued	74,694		75,098		73,874
Average price per share	$	29.01	$	31.11	$	32.18

An additional 743,284 shares were available for issuance under the 2017 MSPP as of December 30, 2017.

The Corporation has entered into change in control employment agreements with certain officers. According to the agreements, a change in control occurs when a third person or entity becomes the beneficial owner of 20 percent or more of the Corporation’s common stock, when more than one-third of the Board is composed of persons not recommended by at least three-fourths of the incumbent Board, upon certain business combinations involving the Corporation, or upon approval by the Corporation’s shareholders of a complete liquidation or dissolution. Upon a change in control, a key member is deemed to have a two-year employment agreement with the Corporation, and all of his or her benefits vest under the Corporation’s compensation plans. If, at any time within two years of the change in control, his or her employment is terminated by the Corporation for any reason other than cause or disability, or by the key member for good reason, as such terms are defined in the agreement, then the key member is entitled to receive, among other benefits, a severance payment equal to two times (three times for the Corporation’s Chairman, President and CEO) annual salary and the average of the prior two years’ bonuses.

Stock Repurchase

The par value method of accounting is used for common stock repurchases. During 2017, the Corporation repurchased 1,462,936 shares of its common stock at a cost of approximately $58.9 million, or an average price of $40.25 per share. As of December 30, 2017, there was a payable of $1.4 million reflected in "Accounts payable and accrued expenses" in the Consolidated Balance Sheets relating to shares repurchased but not yet settled. As of December 30, 2017, approximately $78.0 million of the Corporation's Board of Directors' current repurchase authorization remained unspent. During 2016, the Corporation repurchased 1,082,938 shares of its common stock at a cost of approximately $55.8 million, or an average price of $51.55 per share. During 2015, the Corporation repurchased 550,000 shares of its common stock at a cost of approximately $26.7 million, or an average price of $48.47 per share.