text: **Nature of Operations** date. Equity securities are classified as available-for-sale and are stated 
  
  HON INDUSTRIES Inc., with its subsidiaries (the “Company”), is a  at current market value with unrealized gains and losses included as a 
  
  provider of office furniture and hearth products. Both industries are  separate component of equity, net of any related tax effect. Debt securi- 
  
  reportable segments; however, the Company’s office furniture business  ties are classified as held-to-maturity and are stated at amortized cost. 
  
  is its principal line of business. Refer to the Operating Segment  The specific identification method is used to determine realized gains 
  
  Information note for further information. Office furniture products are  and losses on the trade date. Short-term investments include municipal 
  
  sold through a national system of dealers, wholesalers, mass merchan-  bonds, money market preferred stock, and U.S. treasury notes. Long- 
  
  disers, warehouse clubs, retail superstores, end-user customers, and to  term investments include U.S. government securities, municipal bonds, 
  
  federal and state governments. Dealer, wholesaler, and retail super-  certificates of deposit, and asset- and mortgage-backed securities. 
  
  stores are the major channels based on sales. Hearth products include 