Base salaries were reduced by 10% for all exempt salaried employees and by 15% for all executives.
My salary was reduced by 25%.
Second, our board of directors elected to reduce by 25% both their cap retainers for the next six months and their annual equity award.
Fourth, we suspended our share repurchase activity.
As a point of reference, in recent years, buybacks have averaged approximately $55 million annually.
Finally, we reduced our capital expenditure budget for 2020 from approximately $65 million to $35 million.
Our planned growth investment spending for 2020 is being maintained at a reduced level of approximately 50%.
In total, we currently anticipate $60 million to $65 million of cost improvement during 2020 as compared to 2019 with the full run rate expected by mid-Q2.
Domestic office furniture orders are down 35% versus prior year period.
In fact, our e-commerce orders are up 120% versus the prior year levels, in large part due to a huge spike in demand for home office products.
Orders for our Hearth business during the same period are down 20%.
In each of the last two downturns, the commercial furniture industry volume declined a little over 30%.
Consolidated non-GAAP net income per diluted share was $0.21, which represented a substantial increase versus the $0.02 reported in the first quarter of 2019.
First quarter consolidated organic sales decreased 2.5% versus the prior year to $469 million.
Including the benefit of acquisitions, sales were down 2.2%.
In the Office Furniture segment, first quarter sales decreased 4.3% year-over-year.
We again generated strong profit growth in Office Furniture with first quarter non-GAAP operating income improving $4 million.
Sales in our Hearth Product segment increased 2.6% year-over-year organically or 3.5% when including acquisitions.
Within the Hearth segment, new residential construction revenue grew 3.2% organically and sales of remodel and retrofit products increased 1.9% year-over-year.
Hearth non-GAAP operating profit increased 17% versus the prior year quarter.
For HNI overall, first quarter gross profit margin expanded 220 basis points year-over-year to 37.6%.
Non-GAAP operating profit grew 279% versus the prior year.
And non-GAAP operating margin in the first quarter expanded 220 basis points to 3% of net sales.
Our non-GAAP results exclude $37.7 million of charges related to intangible impairments and one-time items related to the COVID-19 crisis.
At the end of the first quarter, we had $230 million in total debt, representing a gross leverage ratio of 1.0.
This is well below the 3.5 times gross leverage covenant in our existing loan agreements.
Liquidity, as measured by the combination of cash and available capacity on our lending facilities, totaled more than $350 million at quarter end.
First, we would be able to manage to a 25% deleverage or decremental margin with our cost actions.
What it showed is we can support nearly $270 million in debt with zero cash earnings.
This is due in part to the $77 million in annual depreciation and amortization we incur.

Summary:
Base salaries were reduced by 10% for all exempt salaried employees and by 15% for all executives.
My salary was reduced by 25%.
Second, our board of directors elected to reduce by 25% both their cap retainers for the next six months and their annual equity award.
Fourth, we suspended our share repurchase activity.
Finally, we reduced our capital expenditure budget for 2020 from approximately $65 million to $35 million.
Consolidated non-GAAP net income per diluted share was $0.21, which represented a substantial increase versus the $0.02 reported in the first quarter of 2019.
Including the benefit of acquisitions, sales were down 2.2%.
Our non-GAAP results exclude $37.7 million of charges related to intangible impairments and one-time items related to the COVID-19 crisis.
First, we would be able to manage to a 25% deleverage or decremental margin with our cost actions.