Guarantees, Commitments, and Contingencies |
6 Months Ended |
|---|---|
Jul. 04, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Guarantees, Commitments, and Contingencies | Guarantees, Commitments, and Contingencies The Corporation utilizes letters of credit and surety bonds in the amount of approximately $57 million to back certain insurance policies and payment obligations. Additionally, the Corporation periodically utilizes trade letters of credit and bankers' acceptances to guarantee certain payments to suppliers; as of July 4, 2026, there was $7 million outstanding related to these types of guarantees. The letters of credit, bonds, and banker’s acceptances reflect fair value as a condition of their underlying purpose and are subject to competitively determined fees. The Corporation periodically guarantees borrowing arrangements involving certain workplace furnishings dealers and third-party financial institutions. The remaining terms of outstanding guarantees are less than 4 years in length and generally require the Corporation to make payments directly to the financial institution in the event that the dealer is unable to repay its borrowings in accordance with the stated terms. The aggregate amount guaranteed by the Corporation in connection with these agreements is approximately $7 million as of July 4, 2026. The Corporation has determined the likelihood of making future payments under these guarantees is not probable and the associated liability is immaterial. The Corporation has contingent liabilities which have arisen in the ordinary course of its business, including liabilities relating to pending litigation, environmental remediation, taxes, insurance, and other claims. It is the Corporation’s opinion, after consultation with legal counsel, that liabilities, if any, resulting from these matters are not expected to have a material adverse effect on the Corporation’s financial condition, cash flows, or quarterly or annual operating results when resolved in a future period. Tariff Refunds On February 20,2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful. On April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Consolidated Administration and Processing of Entries ("CAPE") process to permit importers to see refunds of previously paid IEEPA tariffs. The Corporation has elected to apply the principles of the loss recovery model in ASC 410-30 to determine whether it may recognize and measure any tariff refunds. Under this model, the Corporation will record the amounts that are probable to recover as a credit to "Cost of Sales" in the Condensed Consolidated Statements of Comprehensive Income. During the quarter ended July 4, 2026 the Corporation recorded net tariff impacts of 150 basis points to operating income.
|