Stock-Based Compensation

9 Months Ended

Sep. 27, 2025

Share-Based Payment Arrangement [Abstract]

The Corporation measures stock-based compensation expense at grant date, based on the fair value of the award. Forms of awards issued under shareholder-approved plans include stock options, restricted stock units based on a service condition ("restricted stock units"), restricted stock units based on both performance and service conditions ("performance stock units"), and shares issued under member stock purchase plans. Stock-based compensation expense related to stock options, restricted stock units, and performance stock units is recognized over the employees’ requisite service periods, adjusted for an estimated forfeiture rate for those shares not expected to vest. Additionally, expense related to performance stock units is periodically adjusted for the probable number of shares to be awarded based on Corporation achievement within an established target range of cumulative profitability over a multi-year period.

The following table summarizes expense associated with these plans:


	Three Months Ended				Nine Months Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Compensation cost	$	3.3	$	2.1	$	13.3	$	13.7

The units granted by the Corporation had fair values as follows:


	Nine Months Ended
	September 27, 2025		September 28, 2024

Restricted stock units	$	7.3	$	8.2
Performance stock units	$	7.2	$	7.3

The following table summarizes unrecognized compensation expense and the weighted-average remaining service period for non-vested stock units as of September 27, 2025:


	Unrecognized Compensation Expense		Weighted-Average Remaining Service Period (years)

Non-vested restricted stock units	$	2.6	0.7
Non-vested performance stock units	$	8.6	0.9

HNI CORP 10-Q