Inventories

6 Months Ended

Jul. 04, 2026

The Corporation’s Residential Building Products inventories, and a majority of its Workplace Furnishings inventories, are valued at cost, on the "last-in, first-out" (LIFO) basis. Remaining inventories are generally valued at the lower of cost, on the "first-in, first-out" (FIFO) basis, or net realizable value. Inventories included in the Condensed Consolidated Balance Sheets consisted of the following:


	July 4, 2026			January 3, 2026

Finished products, net	$	250.1		$	217.3
Materials and work in process, net	301.7			310.7
LIFO allowance	(53.1)			(52.7)
Total inventories, net	$	498.8		$	475.3

Inventory valued by the LIFO costing method	73		%	61		%

The increase in inventory valued at LIFO was driven by additional pools of inventory being valued at LIFO starting in the first quarter of 2026, the impact of which was immaterial to the LIFO allowance.

In addition to the LIFO allowance, the Corporation recorded inventory allowances reducing finished products, materials, and work in process of $11.1 million and $9.7 million as of July 4, 2026 and January 3, 2026, respectively, to adjust for excess and obsolete inventory or otherwise reduce FIFO-basis inventory to net realizable value.