Summary of HNI CORP - Yahoo! Finance

Item 2.05 Costs Associated with Exit or Disposal Activities.

On August 13, 2009, HNI Corporation (the "Corporation") announced it will make structural changes to its hearth products manufacturing and logistic operations. The Corporation will consolidate significant production from its Mount Pleasant, Iowa plant to other existing hearth products manufacturing facilities. Additionally, the Corporation will close hearth products distribution centers in Alsip, Illinois and Lake City, Minnesota and transfer operations to Mount Pleasant. The Corporation will begin making these changes immediately and expects to complete them during the first quarter of 2010. The Corporation made this decision to reduce structural costs.

The Corporation anticipates costs related to the structural changes will impact pre-tax earnings an estimated $5.1 million. The following table lists the estimated composition of these charges:

(Dollars in millions)
Time Period Restructuring Costs Accelerated Depreciation Other Costs Total

  2009 Q3           1.9                   0.4                0.1      2.4
  2009 Q4           0.6                   0.5                0.6      1.7
                                                          2009 Total  4.1
   2010             0.4                   0.1                0.5      1.0
                                                         Grand Total  5.1

The Corporation estimates the structural changes will annually save $4.7 million beginning in 2010.