(In millions) | Goodwill | Indefinite-lived Intangible Assets | Total Goodwill and Indefinite-lived Intangible Assets | |||||||||
Balance, June 2, 2018 | $ | 304.1 | $ | 78.1 | $ | 382.2 | ||||||
Foreign currency translation adjustments | (0.3 | ) | \u2014 | (0.3 | ) | |||||||
Balance, June 2, 2019 | $ | 303.8 | $ | 78.1 | $ | 381.9 | ||||||
Foreign currency translation adjustments | (0.9 | ) | (0.5 | ) | (1.4 | ) | ||||||
Acquisition of HAY | 111.1 | 60.0 | 171.1 | |||||||||
Acquisition of naughtone | 57.5 | 8.5 | 66.0 | |||||||||
Impairment charges | (125.5 | ) | (53.3 | ) | (178.8 | ) | ||||||
Balance, May 30, 2020 | $ | 346.0 | $ | 92.8 | $ | 438.8 |
\u2022 | actual and forecasted revenue growth rates and operating margins, and |
\u2022 | discount rates based on the reporting unit's weighted average cost of capital. |
(In millions) | ||||||
Trade name | Carrying Value | Impairment Charge | ||||
Maharam | $ | 16.5 | $ | (6.5 | ) | |
DWR | 31.5 | (23.6 | ) | |||
HAY | 39.3 | (20.7 | ) | |||
naughtone | 6.0 | (2.5 | ) | |||
Total | $ | 93.3 | $ | (53.3 | ) |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Land and improvements | $ | 23.7 | $ | 24.2 | |||
Buildings and improvements | 266.5 | 267.6 | |||||
Machinery and equipment | 791.9 | 733.0 | |||||
Construction in progress | 29.2 | 59.9 | |||||
Accumulated depreciation | (780.5 | ) | (736.1 | ) | |||
Property and equipment, net | $ | 330.8 | $ | 348.6 |
May\u00a030, 2020 | |||||||||||||||
(In millions) | Patent and Trademarks | Customer Relationships | Other | Total | |||||||||||
Gross carrying value | $ | 41.7 | $ | 118.7 | $ | 14.7 | $ | 175.1 | |||||||
Accumulated amortization | 14.4 | 38.3 | 10.0 | 62.7 | |||||||||||
Net | $ | 27.3 | $ | 80.4 | $ | 4.7 | $ | 112.4 | |||||||
June\u00a01, 2019 | |||||||||||||||
Patent and Trademarks | Customer Relationships | Other | Total | ||||||||||||
Gross carrying value | $ | 20.1 | $ | 55.2 | $ | 12.0 | $ | 87.3 | |||||||
Accumulated amortization | 12.5 | 27.6 | 6.1 | 46.2 | |||||||||||
Net | $ | 7.6 | $ | 27.6 | $ | 5.9 | $ | 41.1 |
(In millions) | |||
2021 | $ | 14.9 | |
2022 | $ | 14.9 | |
2023 | $ | 14.4 | |
2024 | $ | 14.2 | |
2025 | $ | 13.3 |
(In millions) | Retention Level (per occurrence) | ||
General liability | $ | 1.00 | |
Auto liability | $ | 1.00 | |
Workers' compensation | $ | 0.75 | |
Health benefit | $ | 0.50 |
\u2022 | Level 1 \u2014 Financial instruments with unadjusted, quoted prices listed on active market exchanges. |
\u2022 | Level 2 \u2014 Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals. |
\u2022 | Level 3 \u2014 Financial instruments not actively traded on a market exchange and there is little, if any, market activity.\u00a0Values are determined using significant unobservable inputs or valuation techniques. |
Standard | Description | Effective Date | |||
2016-13 | Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | This guidance replaces the existing incurred loss impairment model with an expected loss model and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. | May 31, 2020 | ||
2018-13 | Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement | This update eliminates, adds and modifies certain disclosure requirements for fair value measurements. Early adoption is permitted. | May 31, 2020 | ||
2018-14 | Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans | This update eliminates, adds and clarifies certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. Early adoption is permitted. | May 30, 2021 | ||
2019-12 | Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes | This update removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The update also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. Early adoption is permitted. | May 30, 2021 |
(In millions) | Goodwill | Indefinite-lived Intangible Assets | Total Goodwill and Indefinite-lived Intangible Assets | |||||||||
Balance, June 2, 2018 | $ | 304.1 | $ | 78.1 | $ | 382.2 | ||||||
Foreign currency translation adjustments | (0.3 | ) | \u2014 | (0.3 | ) | |||||||
Balance, June 2, 2019 | $ | 303.8 | $ | 78.1 | $ | 381.9 | ||||||
Foreign currency translation adjustments | (0.9 | ) | (0.5 | ) | (1.4 | ) | ||||||
Acquisition of HAY | 111.1 | 60.0 | 171.1 | |||||||||
Acquisition of naughtone | 57.5 | 8.5 | 66.0 | |||||||||
Impairment charges | (125.5 | ) | (53.3 | ) | (178.8 | ) | ||||||
Balance, May 30, 2020 | $ | 346.0 | $ | 92.8 | $ | 438.8 |
\u2022 | actual and forecasted revenue growth rates and operating margins, and |
\u2022 | discount rates based on the reporting unit's weighted average cost of capital. |
(In millions) | ||||||
Trade name | Carrying Value | Impairment Charge | ||||
Maharam | $ | 16.5 | $ | (6.5 | ) | |
DWR | 31.5 | (23.6 | ) | |||
HAY | 39.3 | (20.7 | ) | |||
naughtone | 6.0 | (2.5 | ) | |||
Total | $ | 93.3 | $ | (53.3 | ) |
(In millions) | Goodwill | Indefinite-lived Intangible Assets | Total Goodwill and Indefinite-lived Intangible Assets | |||||||||
Balance, June 2, 2018 | $ | 304.1 | $ | 78.1 | $ | 382.2 | ||||||
Foreign currency translation adjustments | (0.3 | ) | \u2014 | (0.3 | ) | |||||||
Balance, June 2, 2019 | $ | 303.8 | $ | 78.1 | $ | 381.9 | ||||||
Foreign currency translation adjustments | (0.9 | ) | (0.5 | ) | (1.4 | ) | ||||||
Acquisition of HAY | 111.1 | 60.0 | 171.1 | |||||||||
Acquisition of naughtone | 57.5 | 8.5 | 66.0 | |||||||||
Impairment charges | (125.5 | ) | (53.3 | ) | (178.8 | ) | ||||||
Balance, May 30, 2020 | $ | 346.0 | $ | 92.8 | $ | 438.8 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Land and improvements | $ | 23.7 | $ | 24.2 | |||
Buildings and improvements | 266.5 | 267.6 | |||||
Machinery and equipment | 791.9 | 733.0 | |||||
Construction in progress | 29.2 | 59.9 | |||||
Accumulated depreciation | (780.5 | ) | (736.1 | ) | |||
Property and equipment, net | $ | 330.8 | $ | 348.6 |
May\u00a030, 2020 | |||||||||||||||
(In millions) | Patent and Trademarks | Customer Relationships | Other | Total | |||||||||||
Gross carrying value | $ | 41.7 | $ | 118.7 | $ | 14.7 | $ | 175.1 | |||||||
Accumulated amortization | 14.4 | 38.3 | 10.0 | 62.7 | |||||||||||
Net | $ | 27.3 | $ | 80.4 | $ | 4.7 | $ | 112.4 | |||||||
June\u00a01, 2019 | |||||||||||||||
Patent and Trademarks | Customer Relationships | Other | Total | ||||||||||||
Gross carrying value | $ | 20.1 | $ | 55.2 | $ | 12.0 | $ | 87.3 | |||||||
Accumulated amortization | 12.5 | 27.6 | 6.1 | 46.2 | |||||||||||
Net | $ | 7.6 | $ | 27.6 | $ | 5.9 | $ | 41.1 |
May\u00a030, 2020 | |||||||||||||||
(In millions) | Patent and Trademarks | Customer Relationships | Other | Total | |||||||||||
Gross carrying value | $ | 41.7 | $ | 118.7 | $ | 14.7 | $ | 175.1 | |||||||
Accumulated amortization | 14.4 | 38.3 | 10.0 | 62.7 | |||||||||||
Net | $ | 27.3 | $ | 80.4 | $ | 4.7 | $ | 112.4 | |||||||
June\u00a01, 2019 | |||||||||||||||
Patent and Trademarks | Customer Relationships | Other | Total | ||||||||||||
Gross carrying value | $ | 20.1 | $ | 55.2 | $ | 12.0 | $ | 87.3 | |||||||
Accumulated amortization | 12.5 | 27.6 | 6.1 | 46.2 | |||||||||||
Net | $ | 7.6 | $ | 27.6 | $ | 5.9 | $ | 41.1 |
(In millions) | |||
2021 | $ | 14.9 | |
2022 | $ | 14.9 | |
2023 | $ | 14.4 | |
2024 | $ | 14.2 | |
2025 | $ | 13.3 |
(In millions) | Retention Level (per occurrence) | ||
General liability | $ | 1.00 | |
Auto liability | $ | 1.00 | |
Workers' compensation | $ | 0.75 | |
Health benefit | $ | 0.50 |
(In millions) | Retention Level (per occurrence) | ||
General liability | $ | 1.00 | |
Auto liability | $ | 1.00 | |
Workers' compensation | $ | 0.75 | |
Health benefit | $ | 0.50 |
\u2022 | Single Performance Obligation - these contracts are transacted with customers and include only the product performance obligation. Most commonly, these contracts represent master agreements with independent third-party dealers in which a purchase order represents the customer contract, point of sale transactions through the Retail segment, as well as customer purchase orders for the Maharam subsidiary within the North America Contract segment. For contracts that include a single performance obligation, the Company records revenue at the point in time when title and risk of loss has transferred to the customer. |
\u2022 | Multiple Performance Obligations - these contracts are transacted with customers and include more than one performance obligation; products, which are shipped to the customer by the Company and installation and other services, which are primarily fulfilled by independent third-party dealers. For contracts that include multiple performance obligations, the Company records revenue for the product performance obligation at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. In most cases, the Company has concluded that it is the agent for the installation services performance obligation and as such, the revenue and costs of these services are recorded net within Net sales in the Company\u2019s Consolidated Statements of Comprehensive Income. |
\u2022 | Level 1 \u2014 Financial instruments with unadjusted, quoted prices listed on active market exchanges. |
\u2022 | Level 2 \u2014 Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals. |
Standard | Description | Effective Date | |||
2016-13 | Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | This guidance replaces the existing incurred loss impairment model with an expected loss model and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. | May 31, 2020 | ||
2018-13 | Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement | This update eliminates, adds and modifies certain disclosure requirements for fair value measurements. Early adoption is permitted. | May 31, 2020 | ||
2018-14 | Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans | This update eliminates, adds and clarifies certain disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. Early adoption is permitted. | May 30, 2021 | ||
2019-12 | Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes | This update removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The update also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. Early adoption is permitted. | May 30, 2021 |
\u2022 | Single Performance Obligation - these contracts are transacted with customers and include only the product performance obligation. Most commonly, these contracts represent master agreements with independent third-party dealers in which a purchase order represents the customer contract, point of sale transactions through the Retail segment, as well as customer purchase orders for the Maharam subsidiary within the North America Contract segment. For contracts that include a single performance obligation, the Company records revenue at the point in time when title and risk of loss has transferred to the customer. |
\u2022 | Multiple Performance Obligations - these contracts are transacted with customers and include more than one performance obligation; products, which are shipped to the customer by the Company and installation and other services, which are primarily fulfilled by independent third-party dealers. For contracts that include multiple performance obligations, the Company records revenue for the product performance obligation at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. In most cases, the Company has concluded that it is the agent for the installation services performance obligation and as such, the revenue and costs of these services are recorded net within Net sales in the Company\u2019s Consolidated Statements of Comprehensive Income. |
\u2022 | Other - these contracts are comprised mainly of alliance fee arrangements, whereby the Company earns revenue for allowing other furniture sellers access to its dealer distribution channel, as well as other miscellaneous selling arrangements. Revenue from alliance contracts are recorded at the point in time in which the sale is made by other furniture sellers through the Company\u2019s sales channel. |
Year Ended | |||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Net Sales: | |||||||
Single performance obligation | |||||||
Product revenue | $ | 2,116.6 | $ | 2,155.0 | |||
Multiple performance obligations | |||||||
Product revenue | 347.8 | 390.0 | |||||
Service revenue | 9.7 | 12.6 | |||||
Other | 12.5 | 9.6 | |||||
Total | $ | 2,486.6 | $ | 2,567.2 |
Year Ended | |||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
North America Contract: | |||||||
Systems | $ | 512.7 | $ | 564.4 | |||
Seating | 459.1 | 501.8 | |||||
Freestanding and storage | 379.8 | 384.9 | |||||
Textiles | 138.8 | 113.8 | |||||
Other | 107.8 | 121.6 | |||||
Total North America Contract | $ | 1,598.2 | $ | 1,686.5 | |||
International Contract: | |||||||
Systems | $ | 76.6 | $ | 103.6 | |||
Seating | 321.2 | 276.1 | |||||
Freestanding and storage | 51.1 | 53.0 | |||||
Other | 53.9 | 59.5 | |||||
Total International Contract | $ | 502.8 | $ | 492.2 | |||
Retail: | |||||||
Seating | $ | 261.3 | $ | 235.6 | |||
Freestanding and storage | 66.0 | 67.5 | |||||
Other | 58.3 | 85.4 | |||||
Total Retail | $ | 385.6 | $ | 388.5 | |||
Total | $ | 2,486.6 | $ | 2,567.2 |
Year Ended | |||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Net Sales: | |||||||
Single performance obligation | |||||||
Product revenue | $ | 2,116.6 | $ | 2,155.0 | |||
Multiple performance obligations | |||||||
Product revenue | 347.8 | 390.0 | |||||
Service revenue | 9.7 | 12.6 | |||||
Other | 12.5 | 9.6 | |||||
Total | $ | 2,486.6 | $ | 2,567.2 |
Year Ended | |||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
North America Contract: | |||||||
Systems | $ | 512.7 | $ | 564.4 | |||
Seating | 459.1 | 501.8 | |||||
Freestanding and storage | 379.8 | 384.9 | |||||
Textiles | 138.8 | 113.8 | |||||
Other | 107.8 | 121.6 | |||||
Total North America Contract | $ | 1,598.2 | $ | 1,686.5 | |||
International Contract: | |||||||
Systems | $ | 76.6 | $ | 103.6 | |||
Seating | 321.2 | 276.1 | |||||
Freestanding and storage | 51.1 | 53.0 | |||||
Other | 53.9 | 59.5 | |||||
Total International Contract | $ | 502.8 | $ | 492.2 | |||
Retail: | |||||||
Seating | $ | 261.3 | $ | 235.6 | |||
Freestanding and storage | 66.0 | 67.5 | |||||
Other | 58.3 | 85.4 | |||||
Total Retail | $ | 385.6 | $ | 388.5 | |||
Total | $ | 2,486.6 | $ | 2,567.2 |
(In millions) | |||
Cash | $ | 12.1 | |
Working capital, net of cash and inventory step-up | 12.3 | ||
Net property and equipment | 0.9 | ||
Other assets | 3.9 | ||
Other liabilities | (3.1 | ) | |
Net assets acquired | $ | 26.1 |
Acquisition Date Fair Value | |||||||||||||||
(In millions) | Valuation Method | Useful Life (years) | Initial Valuation at February 29, 2020 | Adjusted Valuation at May 30, 2020 | Measurement Period Adjustments | ||||||||||
Inventory Step-up | Comparative Sales Approach | 0.8 | $ | 3.4 | $ | 3.4 | $ | \u2014 | |||||||
Backlog | Multi-Period Excess Earnings | 0.3 | 3.4 | 1.7 | (1.7 | ) | |||||||||
Deferred Revenue | Adjusted Fulfillment Cost Method | 0.1 | (2.0 | ) | (2.2 | ) | (0.2 | ) | |||||||
Tradename | Relief from Royalty | Indefinite | 56.0 | 60.0 | 4.0 | ||||||||||
Product Development | Relief from Royalty | 8.0 | 21.0 | 22.0 | 1.0 | ||||||||||
Customer Relationships | Multi-Period Excess Earnings | 9.0 | 33.0 | 34.0 | 1.0 | ||||||||||
Total | $ | 114.8 | $ | 118.9 | $ | 4.1 |
(In millions) | |||
Cash | $ | 5.1 | |
Working capital, net of cash and inventory step-up | 1.3 | ||
Net property and equipment | 0.8 | ||
Net assets acquired | $ | 7.2 |
(In millions) | Valuation Method | Useful Life (years) | Fair Value | ||||
Inventory Step-up | Comparative Sales Approach | 0.3 | $ | 0.2 | |||
Backlog | Multi-Period Excess Earnings | 0.3 | 0.8 | ||||
Tradename | Relief from Royalty | Indefinite | 8.5 | ||||
Customer Relationships | Multi-Period Excess Earnings | 9.0 | 29.4 | ||||
Total | $ | 38.9 |
Year Ended | |||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Net sales | $ | 2,580.6 | $ | 2,757.3 | |||
Net (loss) earnings attributable to Herman Miller, Inc. | $ | (46.3 | ) | $ | 163.7 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Finished goods and work in process | $ | 151.1 | \u00a0 | $ | 139.1 | ||
Raw materials | 46.2 | 45.1 | |||||
Total | $ | 197.3 | \u00a0 | $ | 184.2 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Finished goods and work in process | $ | 151.1 | \u00a0 | $ | 139.1 | ||
Raw materials | 46.2 | 45.1 | |||||
Total | $ | 197.3 | \u00a0 | $ | 184.2 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Investments in nonconsolidated affiliates | $ | 12.2 | $ | 89.0 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Equity earnings from nonconsolidated affiliates, net of tax | $ | 5.0 | $ | 5.0 | $ | 3.0 |
Ownership Interest | May\u00a030, 2020 | June\u00a01, 2019 | |
Kvadrat Maharam Arabia DMCC | 50.0% | 50.0% | |
Kvadrat Maharam Pty Limited | 50.0% | 50.0% | |
Kvadrat Maharam Turkey JSC | 50.0% | 50.0% | |
Danskina B.V. | 50.0% | 50.0% | |
Global Holdings Netherlands B.V. | 48.2% | 48.2% |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Sales to nonconsolidated affiliates | $ | 3.6 | $ | 3.9 | $ | 4.3 | |||||
Purchases from nonconsolidated affiliates | $ | 5.0 | $ | 23.0 | $ | 6.8 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Receivables from nonconsolidated affiliates | $ | 0.6 | $ | 0.7 | |||
Payables to nonconsolidated affiliates | $ | \u2014 | $ | 1.2 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Investments in nonconsolidated affiliates | $ | 12.2 | $ | 89.0 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Equity earnings from nonconsolidated affiliates, net of tax | $ | 5.0 | $ | 5.0 | $ | 3.0 |
Ownership Interest | May\u00a030, 2020 | June\u00a01, 2019 | |
Kvadrat Maharam Arabia DMCC | 50.0% | 50.0% | |
Kvadrat Maharam Pty Limited | 50.0% | 50.0% | |
Kvadrat Maharam Turkey JSC | 50.0% | 50.0% | |
Danskina B.V. | 50.0% | 50.0% | |
Global Holdings Netherlands B.V. | 48.2% | 48.2% |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Sales to nonconsolidated affiliates | $ | 3.6 | $ | 3.9 | $ | 4.3 | |||||
Purchases from nonconsolidated affiliates | $ | 5.0 | $ | 23.0 | $ | 6.8 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Receivables from nonconsolidated affiliates | $ | 0.6 | $ | 0.7 | |||
Payables to nonconsolidated affiliates | $ | \u2014 | $ | 1.2 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Debt securities, 6.0%, due March 1, 2021 | $ | 50.0 | $ | 50.0 | |||
Debt securities, 4.95%, due May 20, 2030 | 49.9 | \u2014 | |||||
Syndicated Revolving Line of Credit, due August 2024 | 490.0 | 225.0 | |||||
Construction-Type Lease | \u2014 | 6.9 | |||||
Supplier financing program | 1.4 | 3.1 | |||||
Total debt | $ | 591.3 | \u00a0 | $ | 285.0 | ||
Less: Current debt | (51.4 | ) | (3.1 | ) | |||
Long-term debt | $ | 539.9 | $ | 281.9 |
(In millions) | May 30, 2020 | June 1, 2019 | |||||
Syndicated revolving line of credit borrowing capacity | $ | 500.0 | $ | 400.0 | |||
Less: Borrowings under the syndicated revolving line of credit | 490.0 | 225.0 | |||||
Less: Outstanding letters of credit | 9.4 | 10.0 | |||||
Available borrowings under the syndicated revolving line of credit | $ | 0.6 | $ | 165.0 |
(In millions) | |||
2021 | $ | 51.4 | |
2022 | $ | \u2014 | |
2023 | $ | \u2014 | |
2024 | $ | \u2014 | |
2025 | $ | 490.0 | |
Thereafter | $ | 50.0 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Debt securities, 6.0%, due March 1, 2021 | $ | 50.0 | $ | 50.0 | |||
Debt securities, 4.95%, due May 20, 2030 | 49.9 | \u2014 | |||||
Syndicated Revolving Line of Credit, due August 2024 | 490.0 | 225.0 | |||||
Construction-Type Lease | \u2014 | 6.9 | |||||
Supplier financing program | 1.4 | 3.1 | |||||
Total debt | $ | 591.3 | \u00a0 | $ | 285.0 | ||
Less: Current debt | (51.4 | ) | (3.1 | ) | |||
Long-term debt | $ | 539.9 | $ | 281.9 |
(In millions) | May 30, 2020 | June 1, 2019 | |||||
Syndicated revolving line of credit borrowing capacity | $ | 500.0 | $ | 400.0 | |||
Less: Borrowings under the syndicated revolving line of credit | 490.0 | 225.0 | |||||
Less: Outstanding letters of credit | 9.4 | 10.0 | |||||
Available borrowings under the syndicated revolving line of credit | $ | 0.6 | $ | 165.0 |
(In millions) | |||
2021 | $ | 51.4 | |
2022 | $ | \u2014 | |
2023 | $ | \u2014 | |
2024 | $ | \u2014 | |
2025 | $ | 490.0 | |
Thereafter | $ | 50.0 |
\u2022 | The Company elected the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases. |
\u2022 | The Company elected to make the accounting policy election for short-term leases resulting in lease costs being recorded as an expense on a straight-line basis over the lease term. |
\u2022 | The Company elected to not separate lease and non-lease components, for all leases. |
\u2022 | The Company did not elect the hindsight practical expedient in determining the lease term and in assessing the likelihood that a lessee purchase option will be exercised, for all leases. |
\u2022 | The Company did not elect the land easement practical expedient in determining whether land easements that were not previously accounted for as leases are or contain a lease. |
Year Ended | |||
(In millions) | May\u00a030, 2020 | ||
Operating lease costs | $ | 51.3 | |
Short-term lease costs | 2.6 | ||
Variable lease costs* | 8.2 | ||
Total | $ | 62.1 |
(In millions) | |||
2021 | $ | 48.5 | |
2022 | 44.8 | ||
2023 | 40.2 | ||
2024 | 34.5 | ||
2025 | 30.5 | ||
Thereafter | 71.9 | ||
Total lease payments* | 270.4 | ||
Less interest | 26.5 | ||
Present value of lease liabilities | $ | 243.9 |
(In millions) | |||
2020 | $ | 51.7 | |
2021 | 46.8 | ||
2022 | 42.9 | ||
2023 | 39.0 | ||
2024 | 33.5 | ||
Thereafter | 101.9 | ||
Total | $ | 315.8 |
Year Ended | |||
(In millions) | May\u00a030, 2020 | ||
Operating lease costs | $ | 51.3 | |
Short-term lease costs | 2.6 | ||
Variable lease costs* | 8.2 | ||
Total | $ | 62.1 |
(In millions) | |||
2021 | $ | 48.5 | |
2022 | 44.8 | ||
2023 | 40.2 | ||
2024 | 34.5 | ||
2025 | 30.5 | ||
Thereafter | 71.9 | ||
Total lease payments* | 270.4 | ||
Less interest | 26.5 | ||
Present value of lease liabilities | $ | 243.9 |
Pension Benefit | |||||||
(In millions) | 2020 | 2019 | |||||
Change in benefit obligation: | \u00a0 | ||||||
Benefit obligation at beginning of year | $ | 109.1 | \u00a0 | $ | 105.9 | ||
Interest cost | 2.4 | 2.7 | |||||
Plan Amendments | \u2014 | 0.9 | |||||
Foreign exchange impact | (2.9 | ) | (6.0 | ) | |||
Actuarial loss (gain) | 21.0 | 9.7 | |||||
Benefits paid | (3.1 | ) | (4.1 | ) | |||
Benefit obligation at end of year | $ | 126.5 | \u00a0 | $ | 109.1 | ||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 88.2 | $ | 94.6 | |||
Actual return on plan assets | 4.7 | 2.5 | |||||
Foreign exchange impact | (2.0 | ) | (5.1 | ) | |||
Employer contributions | 0.3 | 0.3 | |||||
Benefits paid | (3.1 | ) | (4.1 | ) | |||
Fair value of plan assets at end of year | $ | 88.1 | $ | 88.2 | |||
Funded status: | |||||||
Under funded status at end of year | $ | (38.4 | ) | $ | (20.9 | ) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||||||
Current liabilities | $ | \u2014 | $ | \u2014 | |||
Non-current liabilities | $ | (38.3 | ) | $ | (20.9 | ) | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||||||
Prior service cost | $ | 0.7 | $ | 0.8 | |||
Unrecognized net actuarial loss (gain) | $ | 63.2 | $ | 47.3 | |||
Accumulated other comprehensive loss | $ | 63.9 | $ | 48.1 |
Components of Net Periodic Benefit Costs and Other Changes Recognized in Other Comprehensive Income (Loss): | |||||||||||
(In millions) | 2020 | 2019 | 2018 | ||||||||
Interest cost | $ | 2.4 | $ | 2.7 | $ | 2.7 | |||||
Expected return on plan assets | (4.4 | ) | (4.5 | ) | (5.6 | ) | |||||
Amortization of prior service costs | 0.1 | 0.1 | \u2014 | ||||||||
Amortization of net (gain)/loss | 3.2 | 2.7 | 4.2 | ||||||||
Net periodic benefit cost | $ | 1.3 | $ | 1.0 | $ | 1.3 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): | |||||||
(In millions) | 2020 | 2019 | |||||
Net actuarial (gain) loss | $ | 20.6 | $ | 11.7 | |||
Net amortization | (4.8 | ) | (2.7 | ) | |||
Total recognized in other comprehensive loss | $ | 15.8 | $ | 9.0 |
Weighted-average assumptions used in the determination of net periodic benefit cost: | |||||
(Percentages) | 2020 | 2019 | 2018 | ||
Discount rate | 2.39 | \u00a0 | 2.87 | \u00a0 | 2.49 |
Compensation increase rate | 3.20 | 3.10 | 3.25 | ||
Expected return on plan assets | 4.80 | \u00a0 | 4.80 | \u00a0 | 6.10 |
Weighted-average assumptions used in the determination of the projected benefit obligations: | |||||
Discount rate | 1.66 | \u00a0 | 2.39 | \u00a0 | 2.87 |
Compensation increase rate | 2.75 | \u00a0 | 3.20 | \u00a0 | 3.10 |
Asset Category | Targeted Asset Allocation Percentage | Percentage of Plan Assets at Year End | |||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Fixed income | 35% | 35% | 37% | 33% | |||||||||
Common collective trusts | 65% | 65% | 63% | 67% | |||||||||
Total | 100% | 100% | |||||||||||
(In millions) | May 30, 2020 | ||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||
Foreign government obligations | \u2014 | 31.4 | 31.4 | ||||||||||
Common collective trusts-balanced | \u2014 | 56.7 | 56.7 | ||||||||||
Total | $ | \u2014 | $ | 88.1 | $ | 88.1 | |||||||
(In millions) | June 1, 2019 | ||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||
Foreign government obligations | \u2014 | 29.3 | 29.3 | ||||||||||
Common collective trusts-balanced | \u2014 | 58.9 | 58.9 | ||||||||||
Total | $ | \u2014 | $ | 88.2 | $ | 88.2 |
(In millions) | Pension Benefits | ||
2021 | $ | 2.4 | |
2022 | $ | 2.4 | |
2023 | $ | 2.5 | |
2024 | $ | 2.5 | |
2025 | $ | 2.6 | |
2026-2030 | $ | 13.9 |
Pension Benefit | |||||||
(In millions) | 2020 | 2019 | |||||
Change in benefit obligation: | \u00a0 | ||||||
Benefit obligation at beginning of year | $ | 109.1 | \u00a0 | $ | 105.9 | ||
Interest cost | 2.4 | 2.7 | |||||
Plan Amendments | \u2014 | 0.9 | |||||
Foreign exchange impact | (2.9 | ) | (6.0 | ) | |||
Actuarial loss (gain) | 21.0 | 9.7 | |||||
Benefits paid | (3.1 | ) | (4.1 | ) | |||
Benefit obligation at end of year | $ | 126.5 | \u00a0 | $ | 109.1 | ||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of year | $ | 88.2 | $ | 94.6 | |||
Actual return on plan assets | 4.7 | 2.5 | |||||
Foreign exchange impact | (2.0 | ) | (5.1 | ) | |||
Employer contributions | 0.3 | 0.3 | |||||
Benefits paid | (3.1 | ) | (4.1 | ) | |||
Fair value of plan assets at end of year | $ | 88.1 | $ | 88.2 | |||
Funded status: | |||||||
Under funded status at end of year | $ | (38.4 | ) | $ | (20.9 | ) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||||||
Current liabilities | $ | \u2014 | $ | \u2014 | |||
Non-current liabilities | $ | (38.3 | ) | $ | (20.9 | ) | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||||||
Prior service cost | $ | 0.7 | $ | 0.8 | |||
Unrecognized net actuarial loss (gain) | $ | 63.2 | $ | 47.3 | |||
Accumulated other comprehensive loss | $ | 63.9 | $ | 48.1 |
Components of Net Periodic Benefit Costs and Other Changes Recognized in Other Comprehensive Income (Loss): | |||||||||||
(In millions) | 2020 | 2019 | 2018 | ||||||||
Interest cost | $ | 2.4 | $ | 2.7 | $ | 2.7 | |||||
Expected return on plan assets | (4.4 | ) | (4.5 | ) | (5.6 | ) | |||||
Amortization of prior service costs | 0.1 | 0.1 | \u2014 | ||||||||
Amortization of net (gain)/loss | 3.2 | 2.7 | 4.2 | ||||||||
Net periodic benefit cost | $ | 1.3 | $ | 1.0 | $ | 1.3 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): | |||||||
(In millions) | 2020 | 2019 | |||||
Net actuarial (gain) loss | $ | 20.6 | $ | 11.7 | |||
Net amortization | (4.8 | ) | (2.7 | ) | |||
Total recognized in other comprehensive loss | $ | 15.8 | $ | 9.0 |
Weighted-average assumptions used in the determination of net periodic benefit cost: | |||||
(Percentages) | 2020 | 2019 | 2018 | ||
Discount rate | 2.39 | \u00a0 | 2.87 | \u00a0 | 2.49 |
Compensation increase rate | 3.20 | 3.10 | 3.25 | ||
Expected return on plan assets | 4.80 | \u00a0 | 4.80 | \u00a0 | 6.10 |
Weighted-average assumptions used in the determination of the projected benefit obligations: | |||||
Discount rate | 1.66 | \u00a0 | 2.39 | \u00a0 | 2.87 |
Compensation increase rate | 2.75 | \u00a0 | 3.20 | \u00a0 | 3.10 |
Asset Category | Targeted Asset Allocation Percentage | Percentage of Plan Assets at Year End | |||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Fixed income | 35% | 35% | 37% | 33% | |||||||||
Common collective trusts | 65% | 65% | 63% | 67% | |||||||||
Total | 100% | 100% | |||||||||||
(In millions) | May 30, 2020 | ||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||
Foreign government obligations | \u2014 | 31.4 | 31.4 | ||||||||||
Common collective trusts-balanced | \u2014 | 56.7 | 56.7 | ||||||||||
Total | $ | \u2014 | $ | 88.1 | $ | 88.1 | |||||||
(In millions) | June 1, 2019 | ||||||||||||
Asset Category | Level 1 | Level 2 | Total | ||||||||||
Foreign government obligations | \u2014 | 29.3 | 29.3 | ||||||||||
Common collective trusts-balanced | \u2014 | 58.9 | 58.9 | ||||||||||
Total | $ | \u2014 | $ | 88.2 | $ | 88.2 |
(In millions) | Pension Benefits | ||
2021 | $ | 2.4 | |
2022 | $ | 2.4 | |
2023 | $ | 2.5 | |
2024 | $ | 2.5 | |
2025 | $ | 2.6 | |
2026-2030 | $ | 13.9 |
(In millions, except shares) | 2020 | 2019 | 2018 | ||||||||
Numerator: | \u00a0 | \u00a0 | |||||||||
Numerator for both basic and diluted EPS, Net (loss) earnings attributable to Herman Miller, Inc. | $ | (9.1 | ) | \u00a0 | $ | 160.5 | \u00a0 | $ | 128.1 | ||
\u00a0 | |||||||||||
Denominator: | |||||||||||
Denominator for basic EPS, weighted-average common shares outstanding | 58,920,653 | \u00a0 | 59,011,945 | \u00a0 | 59,681,268 | ||||||
Potentially dilutive shares resulting from stock\u00a0plans | \u2014 | \u00a0 | 369,846 | \u00a0 | 630,037 | ||||||
Denominator for diluted EPS | 58,920,653 | \u00a0 | 59,381,791 | \u00a0 | 60,311,305 |
(In millions, except shares) | 2020 | 2019 | 2018 | ||||||||
Numerator: | \u00a0 | \u00a0 | |||||||||
Numerator for both basic and diluted EPS, Net (loss) earnings attributable to Herman Miller, Inc. | $ | (9.1 | ) | \u00a0 | $ | 160.5 | \u00a0 | $ | 128.1 | ||
\u00a0 | |||||||||||
Denominator: | |||||||||||
Denominator for basic EPS, weighted-average common shares outstanding | 58,920,653 | \u00a0 | 59,011,945 | \u00a0 | 59,681,268 | ||||||
Potentially dilutive shares resulting from stock\u00a0plans | \u2014 | \u00a0 | 369,846 | \u00a0 | 630,037 | ||||||
Denominator for diluted EPS | 58,920,653 | \u00a0 | 59,381,791 | \u00a0 | 60,311,305 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Employee stock purchase program | $ | 0.3 | $ | 0.3 | $ | 0.3 | |||||
Stock option plans | 0.6 | (0.4 | ) | 2.6 | |||||||
Restricted stock units | 3.9 | 4.6 | 3.9 | ||||||||
Performance share units | (2.1 | ) | 2.8 | 0.9 | |||||||
Total | $ | 2.7 | $ | 7.3 | $ | 7.7 | |||||
Tax benefit | $ | 0.5 | $ | 1.6 | $ | 2.3 |
2020 | 2019 | 2018 | |||||||
Risk-free interest rates (1) | N/A | \u00a0 | 2.65-2.70% | \u00a0 | 1.79 | % | |||
Expected term of options (2) | N/A | \u00a0 | 4.4 years | \u00a0 | 4.6 years | ||||
Expected volatility (3) | N/A | \u00a0 | 27 | % | \u00a0 | 26 | % | ||
Dividend yield (4) | N/A | \u00a0 | 2.18-2.33% | \u00a0 | 2.23 | % | |||
Weighted-average grant-date fair value of stock options: | |||||||||
Granted with exercise prices equal to the fair market value of the stock on the date of grant | N/A | $ | 8.05 | $ | 6.39 |
Shares Under Option | Weighted-Average Exercise Prices | Aggregate Intrinsic Value (in millions) | Weighted-Average Remaining Contractual Term (Years) | |||||||||
Outstanding at June 1, 2019 | 790,059 | $ | 32.17 | $ | 3.0 | 5.8 | ||||||
Exercised | (423,815 | ) | $ | 31.63 | ||||||||
Forfeited or expired | (4,828 | ) | $ | 33.38 | ||||||||
Outstanding at May 30, 2020 | 361,416 | $ | 32.80 | \u00a0 | $ | 0.2 | 5.8 | |||||
Ending vested + expected to vest | 361,416 | $ | 32.80 | $ | 0.2 | 5.8 | ||||||
Exercisable at end of period | 186,952 | $ | 29.80 | $ | 0.2 | 5.2 |
Share Units | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic Value (in millions) | Weighted-Average Remaining Contractual Term (Years) | |||||||||
Outstanding at June 1, 2019 | 311,281 | $ | 33.93 | \u00a0 | $ | 11.0 | \u00a0 | 1.1 | ||||
Granted | 90,551 | $ | 44.70 | \u00a0 | \u00a0 | |||||||
Forfeited | (14,378 | ) | $ | 40.07 | \u00a0 | \u00a0 | ||||||
Released | (143,680 | ) | $ | 34.79 | \u00a0 | \u00a0 | ||||||
Outstanding at May 30, 2020 | 243,774 | $ | 37.02 | \u00a0 | $ | 5.6 | \u00a0 | 1.3 | ||||
Ending vested + expected to vest | 240,824 | $ | 37.00 | \u00a0 | $ | 5.5 | \u00a0 | 1.3 |
Share Units | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic Value (in millions) | Weighted-Average Remaining Contractual Term (Years) | |||||||||
Outstanding at June 1, 2019 | 323,356 | $ | 33.48 | $ | 11.5 | \u00a0 | 1.1 | |||||
Granted | 188,719 | $ | 45.71 | \u00a0 | ||||||||
Forfeited | (127,538 | ) | $ | 31.79 | \u00a0 | |||||||
Outstanding at May 30, 2020 | 384,537 | $ | 37.95 | $ | 8.9 | \u00a0 | 1.3 | |||||
Ending vested + expected to vest | 384,537 | $ | 37.95 | $ | 8.9 | \u00a0 | 1.3 |
2020 | 2019 | 2018 | ||||||
Shares of common stock | 7,769 | \u00a0 | 10,185 | \u00a0 | 8,828 | |||
Shares through the deferred compensation program | 1,045 | \u00a0 | 7,619 | \u00a0 | 2,207 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Employee stock purchase program | $ | 0.3 | $ | 0.3 | $ | 0.3 | |||||
Stock option plans | 0.6 | (0.4 | ) | 2.6 | |||||||
Restricted stock units | 3.9 | 4.6 | 3.9 | ||||||||
Performance share units | (2.1 | ) | 2.8 | 0.9 | |||||||
Total | $ | 2.7 | $ | 7.3 | $ | 7.7 | |||||
Tax benefit | $ | 0.5 | $ | 1.6 | $ | 2.3 |
2020 | 2019 | 2018 | |||||||
Risk-free interest rates (1) | N/A | \u00a0 | 2.65-2.70% | \u00a0 | 1.79 | % | |||
Expected term of options (2) | N/A | \u00a0 | 4.4 years | \u00a0 | 4.6 years | ||||
Expected volatility (3) | N/A | \u00a0 | 27 | % | \u00a0 | 26 | % | ||
Dividend yield (4) | N/A | \u00a0 | 2.18-2.33% | \u00a0 | 2.23 | % | |||
Weighted-average grant-date fair value of stock options: | |||||||||
Granted with exercise prices equal to the fair market value of the stock on the date of grant | N/A | $ | 8.05 | $ | 6.39 |
Shares Under Option | Weighted-Average Exercise Prices | Aggregate Intrinsic Value (in millions) | Weighted-Average Remaining Contractual Term (Years) | |||||||||
Outstanding at June 1, 2019 | 790,059 | $ | 32.17 | $ | 3.0 | 5.8 | ||||||
Exercised | (423,815 | ) | $ | 31.63 | ||||||||
Forfeited or expired | (4,828 | ) | $ | 33.38 | ||||||||
Outstanding at May 30, 2020 | 361,416 | $ | 32.80 | \u00a0 | $ | 0.2 | 5.8 | |||||
Ending vested + expected to vest | 361,416 | $ | 32.80 | $ | 0.2 | 5.8 | ||||||
Exercisable at end of period | 186,952 | $ | 29.80 | $ | 0.2 | 5.2 |
Share Units | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic Value (in millions) | Weighted-Average Remaining Contractual Term (Years) | |||||||||
Outstanding at June 1, 2019 | 311,281 | $ | 33.93 | \u00a0 | $ | 11.0 | \u00a0 | 1.1 | ||||
Granted | 90,551 | $ | 44.70 | \u00a0 | \u00a0 | |||||||
Forfeited | (14,378 | ) | $ | 40.07 | \u00a0 | \u00a0 | ||||||
Released | (143,680 | ) | $ | 34.79 | \u00a0 | \u00a0 | ||||||
Outstanding at May 30, 2020 | 243,774 | $ | 37.02 | \u00a0 | $ | 5.6 | \u00a0 | 1.3 | ||||
Ending vested + expected to vest | 240,824 | $ | 37.00 | \u00a0 | $ | 5.5 | \u00a0 | 1.3 |
Share Units | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic Value (in millions) | Weighted-Average Remaining Contractual Term (Years) | |||||||||
Outstanding at June 1, 2019 | 323,356 | $ | 33.48 | $ | 11.5 | \u00a0 | 1.1 | |||||
Granted | 188,719 | $ | 45.71 | \u00a0 | ||||||||
Forfeited | (127,538 | ) | $ | 31.79 | \u00a0 | |||||||
Outstanding at May 30, 2020 | 384,537 | $ | 37.95 | $ | 8.9 | \u00a0 | 1.3 | |||||
Ending vested + expected to vest | 384,537 | $ | 37.95 | $ | 8.9 | \u00a0 | 1.3 |
2020 | 2019 | 2018 | ||||||
Shares of common stock | 7,769 | \u00a0 | 10,185 | \u00a0 | 8,828 | |||
Shares through the deferred compensation program | 1,045 | \u00a0 | 7,619 | \u00a0 | 2,207 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Domestic | $ | (75.6 | ) | \u00a0 | $ | 136.2 | \u00a0 | $ | 121.6 | ||
Foreign | 62.2 | \u00a0 | 58.9 | \u00a0 | 46.5 | ||||||
Total | $ | (13.4 | ) | \u00a0 | $ | 195.1 | \u00a0 | $ | 168.1 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Current: Domestic - Federal | $ | 12.0 | \u00a0 | $ | 19.0 | \u00a0 | $ | 30.2 | |||
Domestic - State | 5.7 | \u00a0 | 6.4 | \u00a0 | 4.3 | ||||||
Foreign | 13.3 | \u00a0 | 12.9 | \u00a0 | 10.7 | ||||||
31.0 | \u00a0 | 38.3 | \u00a0 | 45.2 | |||||||
Deferred: Domestic - Federal | (16.8 | ) | 1.0 | (4.1 | ) | ||||||
Domestic - State | (3.9 | ) | (0.2 | ) | 0.1 | ||||||
Foreign | (4.3 | ) | 0.5 | 1.2 | |||||||
(25.0 | ) | 1.3 | (2.8 | ) | |||||||
Total income tax provision | $ | 6.0 | \u00a0 | $ | 39.6 | \u00a0 | $ | 42.4 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Income taxes computed at the United States Statutory rate | $ | (2.8 | ) | \u00a0 | $ | 41.0 | \u00a0 | $ | 49.0 | ||
Increase (decrease) in taxes resulting from: | |||||||||||
State and local income taxes, net of federal income tax benefit | 1.4 | 4.9 | 3.3 | ||||||||
Non-deductible goodwill impairment | 17.1 | \u2014 | \u2014 | ||||||||
Gain on consolidation of equity method investments | (5.5 | ) | \u2014 | \u2014 | |||||||
Remeasurement of U.S. deferred tax assets and liabilities due to the Tax Act | \u2014 | (0.2 | ) | (8.9 | ) | ||||||
U.S. tax liability on undistributed foreign earnings due to the Tax Act | \u2014 | (2.6 | ) | 9.0 | |||||||
Foreign-derived intangible income | (1.4 | ) | (3.1 | ) | \u2014 | ||||||
Global intangible low-taxed income | 5.9 | 6.9 | \u2014 | ||||||||
Foreign statutory rate differences | 0.7 | 1.9 | (4.0 | ) | |||||||
Manufacturing deduction under the American Jobs Creation Act of 2004 | \u2014 | \u2014 | (2.7 | ) | |||||||
Research and development credit | (4.4 | ) | (5.3 | ) | (4.2 | ) | |||||
Foreign offshore income claim | (1.7 | ) | (0.7 | ) | \u2014 | ||||||
Foreign tax credit | (5.8 | ) | (5.7 | ) | (2.4 | ) | |||||
Foreign withholding taxes and other miscellaneous foreign taxes | 2.7 | 0.8 | 1.9 | ||||||||
Other, net | (0.2 | ) | 1.7 | 1.4 | |||||||
Income tax expense | $ | 6.0 | \u00a0 | $ | 39.6 | \u00a0 | $ | 42.4 | |||
Effective tax rate | (44.9 | )% | 20.3 | % | 25.2 | % |
(In millions) | 2020 | 2019 | |||||
Deferred tax assets: | |||||||
Compensation-related accruals | $ | 14.2 | $ | 13.1 | |||
Accrued pension and post-retirement benefit obligations | 9.6 | 7.2 | |||||
Deferred revenue | 3.7 | 6.1 | |||||
Inventory related | 3.9 | 1.2 | |||||
Other reserves and accruals | 7.9 | 8.1 | |||||
Warranty | 14.0 | 12.3 | |||||
State and local tax net operating loss carryforwards and credits | 2.5 | 2.5 | |||||
Federal net operating loss carryforward | 1.2 | 1.4 | |||||
Foreign tax net operating loss carryforwards and credits | 8.4 | 9.1 | |||||
Accrued step rent and tenant reimbursements | 0.7 | 4.2 | |||||
Interest rate swap | 6.1 | 0.3 | |||||
Lease liability | 52.5 | \u2014 | |||||
Other | 6.9 | 4.7 | |||||
Subtotal | 131.6 | 70.2 | |||||
Valuation allowance | (10.6 | ) | (10.4 | ) | |||
Total | $ | 121.0 | $ | 59.8 | |||
\u00a0 | |||||||
Deferred tax liabilities: | |||||||
Book basis in property in excess of tax basis | $ | 32.0 | $ | 26.6 | |||
Intangible assets | 43.6 | 34.6 | |||||
Right of use lease assets | 44.7 | \u2014 | |||||
Other | 3.4 | 2.4 | |||||
Total | $ | 123.7 | $ | 63.6 |
(In millions) | |||
Balance at June 2, 2018 | $ | 3.2 | |
Increases related to current year income tax positions | 0.4 | ||
Increases related to prior year income tax positions | 0.1 | ||
Decreases related to prior year income tax positions | (0.4 | ) | |
Decreases related to lapse of applicable statute of limitations | (0.3 | ) | |
Decreases related to settlements | (1.1 | ) | |
Balance at June 1, 2019 | $ | 1.9 | |
Increases related to current year income tax positions | 0.3 | ||
Decreases related to prior year income tax positions | (0.1 | ) | |
Decreases related to lapse of applicable statute of limitations | (0.2 | ) | |
Balance at May 30, 2020 | $ | 1.9 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Interest and penalty expense (income) | $ | 0.1 | $ | (0.3 | ) | $ | 0.1 | ||||
Liability for interest and penalties | $ | 0.8 | $ | 0.7 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Domestic | $ | (75.6 | ) | \u00a0 | $ | 136.2 | \u00a0 | $ | 121.6 | ||
Foreign | 62.2 | \u00a0 | 58.9 | \u00a0 | 46.5 | ||||||
Total | $ | (13.4 | ) | \u00a0 | $ | 195.1 | \u00a0 | $ | 168.1 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Current: Domestic - Federal | $ | 12.0 | \u00a0 | $ | 19.0 | \u00a0 | $ | 30.2 | |||
Domestic - State | 5.7 | \u00a0 | 6.4 | \u00a0 | 4.3 | ||||||
Foreign | 13.3 | \u00a0 | 12.9 | \u00a0 | 10.7 | ||||||
31.0 | \u00a0 | 38.3 | \u00a0 | 45.2 | |||||||
Deferred: Domestic - Federal | (16.8 | ) | 1.0 | (4.1 | ) | ||||||
Domestic - State | (3.9 | ) | (0.2 | ) | 0.1 | ||||||
Foreign | (4.3 | ) | 0.5 | 1.2 | |||||||
(25.0 | ) | 1.3 | (2.8 | ) | |||||||
Total income tax provision | $ | 6.0 | \u00a0 | $ | 39.6 | \u00a0 | $ | 42.4 |
(In millions) | 2020 | 2019 | 2018 | ||||||||
Income taxes computed at the United States Statutory rate | $ | (2.8 | ) | \u00a0 | $ | 41.0 | \u00a0 | $ | 49.0 | ||
Increase (decrease) in taxes resulting from: | |||||||||||
State and local income taxes, net of federal income tax benefit | 1.4 | 4.9 | 3.3 | ||||||||
Non-deductible goodwill impairment | 17.1 | \u2014 | \u2014 | ||||||||
Gain on consolidation of equity method investments | (5.5 | ) | \u2014 | \u2014 | |||||||
Remeasurement of U.S. deferred tax assets and liabilities due to the Tax Act | \u2014 | (0.2 | ) | (8.9 | ) | ||||||
U.S. tax liability on undistributed foreign earnings due to the Tax Act | \u2014 | (2.6 | ) | 9.0 | |||||||
Foreign-derived intangible income | (1.4 | ) | (3.1 | ) | \u2014 | ||||||
Global intangible low-taxed income | 5.9 | 6.9 | \u2014 | ||||||||
Foreign statutory rate differences | 0.7 | 1.9 | (4.0 | ) | |||||||
Manufacturing deduction under the American Jobs Creation Act of 2004 | \u2014 | \u2014 | (2.7 | ) | |||||||
Research and development credit | (4.4 | ) | (5.3 | ) | (4.2 | ) | |||||
Foreign offshore income claim | (1.7 | ) | (0.7 | ) | \u2014 | ||||||
Foreign tax credit | (5.8 | ) | (5.7 | ) | (2.4 | ) | |||||
Foreign withholding taxes and other miscellaneous foreign taxes | 2.7 | 0.8 | 1.9 | ||||||||
Other, net | (0.2 | ) | 1.7 | 1.4 | |||||||
Income tax expense | $ | 6.0 | \u00a0 | $ | 39.6 | \u00a0 | $ | 42.4 | |||
Effective tax rate | (44.9 | )% | 20.3 | % | 25.2 | % |
(In millions) | 2020 | 2019 | |||||
Deferred tax assets: | |||||||
Compensation-related accruals | $ | 14.2 | $ | 13.1 | |||
Accrued pension and post-retirement benefit obligations | 9.6 | 7.2 | |||||
Deferred revenue | 3.7 | 6.1 | |||||
Inventory related | 3.9 | 1.2 | |||||
Other reserves and accruals | 7.9 | 8.1 | |||||
Warranty | 14.0 | 12.3 | |||||
State and local tax net operating loss carryforwards and credits | 2.5 | 2.5 | |||||
Federal net operating loss carryforward | 1.2 | 1.4 | |||||
Foreign tax net operating loss carryforwards and credits | 8.4 | 9.1 | |||||
Accrued step rent and tenant reimbursements | 0.7 | 4.2 | |||||
Interest rate swap | 6.1 | 0.3 | |||||
Lease liability | 52.5 | \u2014 | |||||
Other | 6.9 | 4.7 | |||||
Subtotal | 131.6 | 70.2 | |||||
Valuation allowance | (10.6 | ) | (10.4 | ) | |||
Total | $ | 121.0 | $ | 59.8 | |||
\u00a0 | |||||||
Deferred tax liabilities: | |||||||
Book basis in property in excess of tax basis | $ | 32.0 | $ | 26.6 | |||
Intangible assets | 43.6 | 34.6 | |||||
Right of use lease assets | 44.7 | \u2014 | |||||
Other | 3.4 | 2.4 | |||||
Total | $ | 123.7 | $ | 63.6 |
(In millions) | |||
Balance at June 2, 2018 | $ | 3.2 | |
Increases related to current year income tax positions | 0.4 | ||
Increases related to prior year income tax positions | 0.1 | ||
Decreases related to prior year income tax positions | (0.4 | ) | |
Decreases related to lapse of applicable statute of limitations | (0.3 | ) | |
Decreases related to settlements | (1.1 | ) | |
Balance at June 1, 2019 | $ | 1.9 | |
Increases related to current year income tax positions | 0.3 | ||
Decreases related to prior year income tax positions | (0.1 | ) | |
Decreases related to lapse of applicable statute of limitations | (0.2 | ) | |
Balance at May 30, 2020 | $ | 1.9 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Interest and penalty expense (income) | $ | 0.1 | $ | (0.3 | ) | $ | 0.1 | ||||
Liability for interest and penalties | $ | 0.8 | $ | 0.7 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | ||||||
Carrying value | $ | 591.3 | $ | 285.0 | ||||
Fair value | $ | 594.0 | $ | 287.8 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||||||||||
Financial Assets | NAV | Quoted Prices With Other Observable Inputs (Level 2) | NAV | Quoted Prices With Other Observable Inputs (Level 2) | |||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 283.7 | $ | \u2014 | $ | 69.5 | $ | \u2014 | |||||||
Mutual funds - equity | \u2014 | 0.7 | \u2014 | 0.9 | |||||||||||
Foreign currency forward contracts | \u2014 | 1.1 | \u2014 | \u2014 | |||||||||||
Deferred compensation plan | \u2014 | 13.2 | \u2014 | 12.5 | |||||||||||
Total | $ | 283.7 | $ | 15.0 | $ | 69.5 | $ | 13.4 | |||||||
Financial Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | \u2014 | $ | 0.8 | $ | \u2014 | $ | 1.4 | |||||||
Total | $ | \u2014 | $ | 0.8 | $ | \u2014 | $ | 1.4 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Financial Assets | Quoted Prices with Other Observable Inputs (Level 2) | Quoted Prices with Other Observable Inputs (Level 2) | |||||
Mutual funds - fixed income | $ | 6.3 | $ | 7.9 | |||
Interest rate swap agreement | \u2014 | 1.0 | |||||
Total | $ | 6.3 | $ | 8.9 | |||
Financial Liabilities | |||||||
Interest rate swap agreement | $ | 25.0 | $ | 2.2 | |||
Total | $ | 25.0 | $ | 2.2 |
May\u00a030, 2020 | June\u00a01, 2019 | ||||||||||||||||||||||
(In millions) | Cost | Unrealized Gain/(Loss) | Market Value | Cost | Unrealized Gain/(Loss) | Market Value | |||||||||||||||||
Mutual funds - fixed income | $ | 6.2 | $ | 0.1 | $ | 6.3 | $ | 7.9 | $ | \u2014 | $ | 7.9 | |||||||||||
Mutual funds - equity | 0.6 | 0.1 | 0.7 | 0.8 | 0.1 | 0.9 | |||||||||||||||||
Total | $ | 6.8 | $ | 0.2 | $ | 7.0 | $ | 8.7 | $ | 0.1 | $ | 8.8 |
(In millions) | Balance Sheet Location | May\u00a030, 2020 | June\u00a01, 2019 | ||||||
Designated derivatives: | |||||||||
Interest rate swap | Long-term assets: Other noncurrent assets | $ | \u2014 | $ | 1.0 | ||||
Interest rate swap | Long-term liabilities: Other liabilities | $ | 25.0 | $ | 2.2 | ||||
Non-designated derivatives: | |||||||||
Foreign currency forward contracts | Current assets: Other current assets | $ | 1.1 | $ | \u2014 | ||||
Foreign currency forward contracts | Current liabilities: Other accrued liabilities | $ | 0.8 | $ | 1.4 |
Fiscal Year | |||||||||||||
(In millions) | Statement of Comprehensive Income Location | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | |||||||||
(Loss) gain recognized on foreign currency forward contracts | Other expense (income), net | \u00a0 | $ | (1.1 | ) | $ | 0.3 | $ | 0.4 |
Fiscal Year | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Interest rate swap | $ | (17.2 | ) | $ | (12.8 | ) | $ | 7.5 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Beginning Balance | $ | 20.6 | $ | 30.5 | |||
Purchase of HMCH redeemable noncontrolling interests | (20.4 | ) | (10.1 | ) | |||
Redemption value adjustment | (0.2 | ) | \u2014 | ||||
Exercised options | \u2014 | 0.2 | |||||
Ending Balance | $ | \u2014 | $ | 20.6 |
(In millions) | May\u00a030, 2020 | ||
Beginning Balance | $ | \u2014 | |
Increase due to HAY acquisition | 72.4 | ||
Redemption value adjustment | (17.6 | ) | |
Net income attributable to redeemable noncontrolling interests | (5.1 | ) | |
Foreign currency translation adjustments | $ | 0.7 | |
Ending Balance | $ | 50.4 |
(In millions) | May\u00a030, 2020 | ||
Assets: | Level 3 | ||
Indefinite-lived intangible assets | $ | 92.8 | |
DWR right of use assets | 110.9 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | ||||||
Carrying value | $ | 591.3 | $ | 285.0 | ||||
Fair value | $ | 594.0 | $ | 287.8 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Financial Assets | Quoted Prices with Other Observable Inputs (Level 2) | Quoted Prices with Other Observable Inputs (Level 2) | |||||
Mutual funds - fixed income | $ | 6.3 | $ | 7.9 | |||
Interest rate swap agreement | \u2014 | 1.0 | |||||
Total | $ | 6.3 | $ | 8.9 | |||
Financial Liabilities | |||||||
Interest rate swap agreement | $ | 25.0 | $ | 2.2 | |||
Total | $ | 25.0 | $ | 2.2 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||||||||||
Financial Assets | NAV | Quoted Prices With Other Observable Inputs (Level 2) | NAV | Quoted Prices With Other Observable Inputs (Level 2) | |||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 283.7 | $ | \u2014 | $ | 69.5 | $ | \u2014 | |||||||
Mutual funds - equity | \u2014 | 0.7 | \u2014 | 0.9 | |||||||||||
Foreign currency forward contracts | \u2014 | 1.1 | \u2014 | \u2014 | |||||||||||
Deferred compensation plan | \u2014 | 13.2 | \u2014 | 12.5 | |||||||||||
Total | $ | 283.7 | $ | 15.0 | $ | 69.5 | $ | 13.4 | |||||||
Financial Liabilities | |||||||||||||||
Foreign currency forward contracts | $ | \u2014 | $ | 0.8 | $ | \u2014 | $ | 1.4 | |||||||
Total | $ | \u2014 | $ | 0.8 | $ | \u2014 | $ | 1.4 |
May\u00a030, 2020 | June\u00a01, 2019 | ||||||||||||||||||||||
(In millions) | Cost | Unrealized Gain/(Loss) | Market Value | Cost | Unrealized Gain/(Loss) | Market Value | |||||||||||||||||
Mutual funds - fixed income | $ | 6.2 | $ | 0.1 | $ | 6.3 | $ | 7.9 | $ | \u2014 | $ | 7.9 | |||||||||||
Mutual funds - equity | 0.6 | 0.1 | 0.7 | 0.8 | 0.1 | 0.9 | |||||||||||||||||
Total | $ | 6.8 | $ | 0.2 | $ | 7.0 | $ | 8.7 | $ | 0.1 | $ | 8.8 |
(In millions) | Balance Sheet Location | May\u00a030, 2020 | June\u00a01, 2019 | ||||||
Designated derivatives: | |||||||||
Interest rate swap | Long-term assets: Other noncurrent assets | $ | \u2014 | $ | 1.0 | ||||
Interest rate swap | Long-term liabilities: Other liabilities | $ | 25.0 | $ | 2.2 | ||||
Non-designated derivatives: | |||||||||
Foreign currency forward contracts | Current assets: Other current assets | $ | 1.1 | $ | \u2014 | ||||
Foreign currency forward contracts | Current liabilities: Other accrued liabilities | $ | 0.8 | $ | 1.4 |
Fiscal Year | |||||||||||||
(In millions) | Statement of Comprehensive Income Location | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | |||||||||
(Loss) gain recognized on foreign currency forward contracts | Other expense (income), net | \u00a0 | $ | (1.1 | ) | $ | 0.3 | $ | 0.4 |
Fiscal Year | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Interest rate swap | $ | (17.2 | ) | $ | (12.8 | ) | $ | 7.5 |
(In millions) | May\u00a030, 2020 | ||
Beginning Balance | $ | \u2014 | |
Increase due to HAY acquisition | 72.4 | ||
Redemption value adjustment | (17.6 | ) | |
Net income attributable to redeemable noncontrolling interests | (5.1 | ) | |
Foreign currency translation adjustments | $ | 0.7 | |
Ending Balance | $ | 50.4 |
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | |||||
Beginning Balance | $ | 20.6 | $ | 30.5 | |||
Purchase of HMCH redeemable noncontrolling interests | (20.4 | ) | (10.1 | ) | |||
Redemption value adjustment | (0.2 | ) | \u2014 | ||||
Exercised options | \u2014 | 0.2 | |||||
Ending Balance | $ | \u2014 | $ | 20.6 |
(In millions) | May\u00a030, 2020 | ||
Assets: | Level 3 | ||
Indefinite-lived intangible assets | $ | 92.8 | |
DWR right of use assets | 110.9 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Accrual Balance \u2014 beginning | $ | 53.1 | \u00a0 | $ | 51.5 | $ | 47.7 | ||||
Accrual for warranty matters | 23.7 | \u00a0 | 20.7 | 22.1 | |||||||
Settlements and adjustments | (17.6 | ) | (19.1 | ) | (18.3 | ) | |||||
Accrual Balance \u2014 ending | $ | 59.2 | \u00a0 | $ | 53.1 | $ | 51.5 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Accrual Balance \u2014 beginning | $ | 53.1 | \u00a0 | $ | 51.5 | $ | 47.7 | ||||
Accrual for warranty matters | 23.7 | \u00a0 | 20.7 | 22.1 | |||||||
Settlements and adjustments | (17.6 | ) | (19.1 | ) | (18.3 | ) | |||||
Accrual Balance \u2014 ending | $ | 59.2 | \u00a0 | $ | 53.1 | $ | 51.5 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Net Sales: | |||||||||||
North America Contract | $ | 1,598.2 | \u00a0 | $ | 1,686.5 | \u00a0 | $ | 1,589.8 | |||
International Contract | 502.8 | \u00a0 | 492.2 | \u00a0 | 434.5 | ||||||
Retail | 385.6 | 388.5 | 356.9 | ||||||||
Total | $ | 2,486.6 | \u00a0 | $ | 2,567.2 | \u00a0 | $ | 2,381.2 | |||
Depreciation and Amortization: | |||||||||||
North America Contract | $ | 46.7 | \u00a0 | $ | 46.8 | \u00a0 | $ | 43.9 | |||
International Contract | 17.4 | \u00a0 | 10.5 | \u00a0 | 10.2 | ||||||
Retail | 14.7 | 14.1 | 12.1 | ||||||||
Corporate | 0.7 | \u00a0 | 0.7 | \u00a0 | 0.7 | ||||||
Total | $ | 79.5 | \u00a0 | $ | 72.1 | \u00a0 | $ | 66.9 | |||
Operating Earnings (Loss): | |||||||||||
North America Contract | $ | 130.9 | \u00a0 | $ | 189.7 | \u00a0 | $ | 175.2 | |||
International Contract | 18.2 | \u00a0 | 57.8 | \u00a0 | 36.9 | ||||||
Retail | (148.3 | ) | 5.3 | 13.9 | |||||||
Corporate | (39.2 | ) | (49.3 | ) | (47.1 | ) | |||||
Total | $ | (38.4 | ) | \u00a0 | $ | 203.5 | \u00a0 | $ | 178.9 | ||
Capital Expenditures: | |||||||||||
North America Contract | $ | 53.7 | \u00a0 | $ | 52.7 | \u00a0 | $ | 46.0 | |||
International Contract | 10.4 | \u00a0 | 16.6 | \u00a0 | 11.4 | ||||||
Retail | 4.9 | 16.5 | 13.2 | ||||||||
Corporate | \u2014 | \u00a0 | \u2014 | \u00a0 | \u2014 | ||||||
Total | $ | 69.0 | \u00a0 | $ | 85.8 | \u00a0 | $ | 70.6 | |||
Total Assets: | |||||||||||
North America Contract | $ | 769.5 | \u00a0 | $ | 733.6 | \u00a0 | $ | 677.4 | |||
International Contract | 512.5 | \u00a0 | 356.8 | \u00a0 | 283.4 | ||||||
Retail | 310.9 | 310.0 | 291.2 | ||||||||
Corporate | 461.0 | \u00a0 | 168.9 | \u00a0 | 227.5 | ||||||
Total | $ | 2,053.9 | \u00a0 | $ | 1,569.3 | \u00a0 | $ | 1,479.5 | |||
Goodwill: | |||||||||||
North America Contract | $ | 182.3 | $ | 185.3 | $ | 185.3 | |||||
International Contract | 163.7 | 39.7 | 40.0 | ||||||||
Retail | \u2014 | 78.8 | 78.8 | ||||||||
Corporate | \u2014 | \u2014 | \u2014 | ||||||||
Total | $ | 346.0 | $ | 303.8 | $ | 304.1 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Net Sales: | |||||||||||
Systems | $ | 589.3 | \u00a0 | $ | 668.0 | \u00a0 | $ | 601.5 | |||
Seating | 1,041.6 | \u00a0 | 1,013.5 | \u00a0 | 965.9 | ||||||
Freestanding and storage | 496.9 | \u00a0 | 505.4 | \u00a0 | 465.1 | ||||||
Textiles | 138.8 | 113.8 | 94.3 | ||||||||
Other (1) | 220.0 | \u00a0 | 266.5 | \u00a0 | 254.4 | ||||||
Total | $ | 2,486.6 | \u00a0 | $ | 2,567.2 | \u00a0 | $ | 2,381.2 | |||
(1) \u201cOther\u201d primarily consists of uncategorized product sales and service sales. |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Net Sales: | |||||||||||
United States | $ | 1,795.8 | \u00a0 | $ | 1,865.8 | \u00a0 | $ | 1,737.9 | |||
International | 690.8 | \u00a0 | 701.4 | \u00a0 | 643.3 | ||||||
Total | $ | 2,486.6 | \u00a0 | $ | 2,567.2 | \u00a0 | $ | 2,381.2 | |||
Long-lived assets: | |||||||||||
United States | $ | 306.7 | \u00a0 | $ | 422.1 | \u00a0 | $ | 349.3 | |||
International | 59.6 | \u00a0 | 52.2 | \u00a0 | 50.5 | ||||||
Total | $ | 366.3 | \u00a0 | $ | 474.3 | \u00a0 | $ | 399.8 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Net Sales: | |||||||||||
North America Contract | $ | 1,598.2 | \u00a0 | $ | 1,686.5 | \u00a0 | $ | 1,589.8 | |||
International Contract | 502.8 | \u00a0 | 492.2 | \u00a0 | 434.5 | ||||||
Retail | 385.6 | 388.5 | 356.9 | ||||||||
Total | $ | 2,486.6 | \u00a0 | $ | 2,567.2 | \u00a0 | $ | 2,381.2 | |||
Depreciation and Amortization: | |||||||||||
North America Contract | $ | 46.7 | \u00a0 | $ | 46.8 | \u00a0 | $ | 43.9 | |||
International Contract | 17.4 | \u00a0 | 10.5 | \u00a0 | 10.2 | ||||||
Retail | 14.7 | 14.1 | 12.1 | ||||||||
Corporate | 0.7 | \u00a0 | 0.7 | \u00a0 | 0.7 | ||||||
Total | $ | 79.5 | \u00a0 | $ | 72.1 | \u00a0 | $ | 66.9 | |||
Operating Earnings (Loss): | |||||||||||
North America Contract | $ | 130.9 | \u00a0 | $ | 189.7 | \u00a0 | $ | 175.2 | |||
International Contract | 18.2 | \u00a0 | 57.8 | \u00a0 | 36.9 | ||||||
Retail | (148.3 | ) | 5.3 | 13.9 | |||||||
Corporate | (39.2 | ) | (49.3 | ) | (47.1 | ) | |||||
Total | $ | (38.4 | ) | \u00a0 | $ | 203.5 | \u00a0 | $ | 178.9 | ||
Capital Expenditures: | |||||||||||
North America Contract | $ | 53.7 | \u00a0 | $ | 52.7 | \u00a0 | $ | 46.0 | |||
International Contract | 10.4 | \u00a0 | 16.6 | \u00a0 | 11.4 | ||||||
Retail | 4.9 | 16.5 | 13.2 | ||||||||
Corporate | \u2014 | \u00a0 | \u2014 | \u00a0 | \u2014 | ||||||
Total | $ | 69.0 | \u00a0 | $ | 85.8 | \u00a0 | $ | 70.6 | |||
Total Assets: | |||||||||||
North America Contract | $ | 769.5 | \u00a0 | $ | 733.6 | \u00a0 | $ | 677.4 | |||
International Contract | 512.5 | \u00a0 | 356.8 | \u00a0 | 283.4 | ||||||
Retail | 310.9 | 310.0 | 291.2 | ||||||||
Corporate | 461.0 | \u00a0 | 168.9 | \u00a0 | 227.5 | ||||||
Total | $ | 2,053.9 | \u00a0 | $ | 1,569.3 | \u00a0 | $ | 1,479.5 | |||
Goodwill: | |||||||||||
North America Contract | $ | 182.3 | $ | 185.3 | $ | 185.3 | |||||
International Contract | 163.7 | 39.7 | 40.0 | ||||||||
Retail | \u2014 | 78.8 | 78.8 | ||||||||
Corporate | \u2014 | \u2014 | \u2014 | ||||||||
Total | $ | 346.0 | $ | 303.8 | $ | 304.1 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Net Sales: | |||||||||||
Systems | $ | 589.3 | \u00a0 | $ | 668.0 | \u00a0 | $ | 601.5 | |||
Seating | 1,041.6 | \u00a0 | 1,013.5 | \u00a0 | 965.9 | ||||||
Freestanding and storage | 496.9 | \u00a0 | 505.4 | \u00a0 | 465.1 | ||||||
Textiles | 138.8 | 113.8 | 94.3 | ||||||||
Other (1) | 220.0 | \u00a0 | 266.5 | \u00a0 | 254.4 | ||||||
Total | $ | 2,486.6 | \u00a0 | $ | 2,567.2 | \u00a0 | $ | 2,381.2 | |||
(1) \u201cOther\u201d primarily consists of uncategorized product sales and service sales. |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Net Sales: | |||||||||||
United States | $ | 1,795.8 | \u00a0 | $ | 1,865.8 | \u00a0 | $ | 1,737.9 | |||
International | 690.8 | \u00a0 | 701.4 | \u00a0 | 643.3 | ||||||
Total | $ | 2,486.6 | \u00a0 | $ | 2,567.2 | \u00a0 | $ | 2,381.2 | |||
Long-lived assets: | |||||||||||
United States | $ | 306.7 | \u00a0 | $ | 422.1 | \u00a0 | $ | 349.3 | |||
International | 59.6 | \u00a0 | 52.2 | \u00a0 | 50.5 | ||||||
Total | $ | 366.3 | \u00a0 | $ | 474.3 | \u00a0 | $ | 399.8 |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Cumulative translation adjustments at beginning of period | $ | (48.3 | ) | $ | (34.1 | ) | $ | (36.8 | ) | ||
Other comprehensive (loss) income | (7.7 | ) | (14.2 | ) | 2.7 | ||||||
Balance at end of period | (56.0 | ) | (48.3 | ) | (34.1 | ) | |||||
Pension and other post-retirement benefit plans at beginning of period | (45.0 | ) | (37.2 | ) | (47.6 | ) | |||||
Other comprehensive (loss) income before reclassifications (net of tax of $3.5, $2.0, and($2.9)) | (16.9 | ) | (10.0 | ) | 5.3 | ||||||
Reclassification from accumulated other comprehensive income - Other, net | 3.3 | 2.6 | 4.2 | ||||||||
Tax (expense) benefit | (0.6 | ) | (0.4 | ) | 0.9 | ||||||
Net reclassifications | 2.7 | 2.2 | 5.1 | ||||||||
Net current period other comprehensive (loss) income | (14.2 | ) | (7.8 | ) | 10.4 | ||||||
Balance at end of period | (59.2 | ) | (45.0 | ) | (37.2 | ) | |||||
Interest rate swap agreement at beginning of period | (0.9 | ) | 9.9 | 2.1 | |||||||
Cumulative effect of accounting change | \u2014 | 1.5 | \u2014 | ||||||||
Other comprehensive (loss) income before reclassifications (net of tax of $5.8, $5.3, and ($4.0)) | (17.2 | ) | (12.8 | ) | 7.5 | ||||||
Reclassification from accumulated other comprehensive income - Other, net | (0.8 | ) | 0.5 | 0.3 | |||||||
Net reclassifications | (0.8 | ) | 0.5 | 0.3 | |||||||
Net current period other comprehensive (loss) income | (18.0 | ) | (12.3 | ) | 7.8 | ||||||
Balance at end of period | (18.9 | ) | (0.9 | ) | 9.9 | ||||||
Unrealized holding gains on securities at beginning of period | \u2014 | 0.1 | 0.1 | ||||||||
Cumulative effect of accounting change | \u2014 | (0.1 | ) | \u2014 | |||||||
Other comprehensive income before reclassifications | 0.1 | \u2014 | \u2014 | ||||||||
Balance at end of period | 0.1 | \u2014 | 0.1 | ||||||||
Total Accumulated other comprehensive loss | $ | (134.0 | ) | $ | (94.2 | ) | $ | (61.3 | ) |
Year Ended | |||||||||||
(In millions) | May\u00a030, 2020 | June\u00a01, 2019 | June\u00a02, 2018 | ||||||||
Cumulative translation adjustments at beginning of period | $ | (48.3 | ) | $ | (34.1 | ) | $ | (36.8 | ) | ||
Other comprehensive (loss) income | (7.7 | ) | (14.2 | ) | 2.7 | ||||||
Balance at end of period | (56.0 | ) | (48.3 | ) | (34.1 | ) | |||||
Pension and other post-retirement benefit plans at beginning of period | (45.0 | ) | (37.2 | ) | (47.6 | ) | |||||
Other comprehensive (loss) income before reclassifications (net of tax of $3.5, $2.0, and($2.9)) | (16.9 | ) | (10.0 | ) | 5.3 | ||||||
Reclassification from accumulated other comprehensive income - Other, net | 3.3 | 2.6 | 4.2 | ||||||||
Tax (expense) benefit | (0.6 | ) | (0.4 | ) | 0.9 | ||||||
Net reclassifications | 2.7 | 2.2 | 5.1 | ||||||||
Net current period other comprehensive (loss) income | (14.2 | ) | (7.8 | ) | 10.4 | ||||||
Balance at end of period | (59.2 | ) | (45.0 | ) | (37.2 | ) | |||||
Interest rate swap agreement at beginning of period | (0.9 | ) | 9.9 | 2.1 | |||||||
Cumulative effect of accounting change | \u2014 | 1.5 | \u2014 | ||||||||
Other comprehensive (loss) income before reclassifications (net of tax of $5.8, $5.3, and ($4.0)) | (17.2 | ) | (12.8 | ) | 7.5 | ||||||
Reclassification from accumulated other comprehensive income - Other, net | (0.8 | ) | 0.5 | 0.3 | |||||||
Net reclassifications | (0.8 | ) | 0.5 | 0.3 | |||||||
Net current period other comprehensive (loss) income | (18.0 | ) | (12.3 | ) | 7.8 | ||||||
Balance at end of period | (18.9 | ) | (0.9 | ) | 9.9 | ||||||
Unrealized holding gains on securities at beginning of period | \u2014 | 0.1 | 0.1 | ||||||||
Cumulative effect of accounting change | \u2014 | (0.1 | ) | \u2014 | |||||||
Other comprehensive income before reclassifications | 0.1 | \u2014 | \u2014 | ||||||||
Balance at end of period | 0.1 | \u2014 | 0.1 | ||||||||
Total Accumulated other comprehensive loss | $ | (134.0 | ) | $ | (94.2 | ) | $ | (61.3 | ) |
(In millions) | Severance and Employee-Related | Exit or Disposal Activities | Total | ||||||
June\u00a02, 2018 | $ | \u2014 | $ | \u2014 | $ | \u2014 | |||
Restructuring Costs | 7.0 | 3.2 | $ | 10.2 | |||||
Amounts Paid | (0.2 | ) | (2.1 | ) | $ | (2.3 | ) | ||
June\u00a01, 2019 | $ | 6.8 | $ | 1.1 | $ | 7.9 | |||
Restructuring Costs | 9.9 | 1.2 | $ | 11.1 | |||||
Amounts Paid | (10.8 | ) | (1.5 | ) | $ | (12.3 | ) | ||
May\u00a030, 2020 | $ | 5.9 | $ | 0.8 | $ | 6.7 |
(In millions) | Severance and Employee-Related | ||
Beginning Balance | $ | \u2014 | |
Restructuring Costs | 15.3 | ||
Ending Balance | $ | 15.3 |
Year Ended | |||||||||||
(In millions) | May 30, 2020 | June 1, 2019 | June 2, 2018 | ||||||||
North America Contract | $ | 18.7 | \u00a0 | $ | 7.7 | \u00a0 | $ | 1.8 | |||
International Contract | 4.8 | \u00a0 | 2.5 | \u00a0 | 3.9 | ||||||
Retail | 2.9 | \u2014 | \u2014 | ||||||||
Total | $ | 26.4 | \u00a0 | $ | 10.2 | \u00a0 | $ | 5.7 |
(In millions) | Severance and Employee-Related | Exit or Disposal Activities | Total | ||||||
June\u00a02, 2018 | $ | \u2014 | $ | \u2014 | $ | \u2014 | |||
Restructuring Costs | 7.0 | 3.2 | $ | 10.2 | |||||
Amounts Paid | (0.2 | ) | (2.1 | ) | $ | (2.3 | ) | ||
June\u00a01, 2019 | $ | 6.8 | $ | 1.1 | $ | 7.9 | |||
Restructuring Costs | 9.9 | 1.2 | $ | 11.1 | |||||
Amounts Paid | (10.8 | ) | (1.5 | ) | $ | (12.3 | ) | ||
May\u00a030, 2020 | $ | 5.9 | $ | 0.8 | $ | 6.7 |
(In millions) | Severance and Employee-Related | ||
Beginning Balance | $ | \u2014 | |
Restructuring Costs | 15.3 | ||
Ending Balance | $ | 15.3 |
Year Ended | |||||||||||
(In millions) | May 30, 2020 | June 1, 2019 | June 2, 2018 | ||||||||
North America Contract | $ | 18.7 | \u00a0 | $ | 7.7 | \u00a0 | $ | 1.8 | |||
International Contract | 4.8 | \u00a0 | 2.5 | \u00a0 | 3.9 | ||||||
Retail | 2.9 | \u2014 | \u2014 | ||||||||
Total | $ | 26.4 | \u00a0 | $ | 10.2 | \u00a0 | $ | 5.7 |
(In millions, except per share data) | First Quarter (1) | Second Quarter (1) | Third Quarter (1) | Fourth Quarter (1) | ||||||||||||
2020 | Net sales | $ | 670.9 | \u00a0 | $ | 674.2 | $ | 665.7 | $ | 475.7 | ||||||
Gross margin | 246.1 | \u00a0 | 255.5 | 243.3 | 165.8 | |||||||||||
Net earnings attributable to Herman Miller, Inc. | 48.2 | \u00a0 | 78.6 | 37.7 | (173.7 | ) | ||||||||||
Earnings per share-basic | 0.82 | \u00a0 | 1.33 | 0.64 | (2.95 | ) | ||||||||||
Earnings per share-diluted | 0.81 | \u00a0 | 1.32 | 0.64 | (2.95 | ) | ||||||||||
2019 | Net Sales | $ | 624.6 | \u00a0 | $ | 652.6 | \u00a0 | $ | 619.0 | $ | 671.0 | |||||
Gross margin | 225.1 | \u00a0 | 235.6 | \u00a0 | 221.0 | 248.2 | ||||||||||
Net earnings attributable to Herman Miller, Inc. | 35.8 | \u00a0 | 39.3 | \u00a0 | 39.2 | 46.2 | ||||||||||
Earnings per share-basic | 0.60 | \u00a0 | 0.66 | \u00a0 | 0.67 | 0.78 | ||||||||||
Earnings per share-diluted | 0.60 | \u00a0 | 0.66 | \u00a0 | 0.66 | 0.78 | ||||||||||
2018 | Net sales | $ | 580.3 | \u00a0 | $ | 604.6 | \u00a0 | $ | 578.4 | $ | 618.0 | |||||
Gross margin | 216.9 | \u00a0 | 222.1 | \u00a0 | 205.8 | 228.3 | ||||||||||
Net earnings attributable to Herman Miller, Inc. | 33.1 | \u00a0 | 33.5 | \u00a0 | 29.8 | 31.8 | ||||||||||
Earnings per share-basic | 0.55 | \u00a0 | 0.56 | \u00a0 | 0.50 | 0.53 | ||||||||||
Earnings per share-diluted | 0.55 | \u00a0 | 0.55 | \u00a0 | 0.49 | 0.53 | ||||||||||
(1) For some line items, the sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
(In millions, except per share data) | First Quarter (1) | Second Quarter (1) | Third Quarter (1) | Fourth Quarter (1) | ||||||||||||
2020 | Net sales | $ | 670.9 | \u00a0 | $ | 674.2 | $ | 665.7 | $ | 475.7 | ||||||
Gross margin | 246.1 | \u00a0 | 255.5 | 243.3 | 165.8 | |||||||||||
Net earnings attributable to Herman Miller, Inc. | 48.2 | \u00a0 | 78.6 | 37.7 | (173.7 | ) | ||||||||||
Earnings per share-basic | 0.82 | \u00a0 | 1.33 | 0.64 | (2.95 | ) | ||||||||||
Earnings per share-diluted | 0.81 | \u00a0 | 1.32 | 0.64 | (2.95 | ) | ||||||||||
2019 | Net Sales | $ | 624.6 | \u00a0 | $ | 652.6 | \u00a0 | $ | 619.0 | $ | 671.0 | |||||
Gross margin | 225.1 | \u00a0 | 235.6 | \u00a0 | 221.0 | 248.2 | ||||||||||
Net earnings attributable to Herman Miller, Inc. | 35.8 | \u00a0 | 39.3 | \u00a0 | 39.2 | 46.2 | ||||||||||
Earnings per share-basic | 0.60 | \u00a0 | 0.66 | \u00a0 | 0.67 | 0.78 | ||||||||||
Earnings per share-diluted | 0.60 | \u00a0 | 0.66 | \u00a0 | 0.66 | 0.78 | ||||||||||
2018 | Net sales | $ | 580.3 | \u00a0 | $ | 604.6 | \u00a0 | $ | 578.4 | $ | 618.0 | |||||
Gross margin | 216.9 | \u00a0 | 222.1 | \u00a0 | 205.8 | 228.3 | ||||||||||
Net earnings attributable to Herman Miller, Inc. | 33.1 | \u00a0 | 33.5 | \u00a0 | 29.8 | 31.8 | ||||||||||
Earnings per share-basic | 0.55 | \u00a0 | 0.56 | \u00a0 | 0.50 | 0.53 | ||||||||||
Earnings per share-diluted | 0.55 | \u00a0 | 0.55 | \u00a0 | 0.49 | 0.53 | ||||||||||
(1) For some line items, the sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
Column A | Column B | Column C | Column D | Column E | |||||||||||
Description | Balance at beginning of period | Charges to expenses or net sales | Deductions (3) | Balance at end of period | |||||||||||
Year ended May 31, 2020: | \u00a0 | \u00a0 | |||||||||||||
Accounts receivable allowances \u2014 uncollectible accounts(1) | $ | 2.9 | \u00a0 | $ | 2.3 | $ | (0.9 | ) | $ | 4.3 | |||||
Accounts receivable allowances \u2014 credit memo(2) | $ | 0.6 | \u00a0 | $ | \u2014 | $ | (0.5 | ) | $ | 0.1 | |||||
Allowance for possible losses on notes receivable | $ | 0.3 | \u00a0 | $ | \u2014 | $ | \u2014 | $ | 0.3 | ||||||
Valuation allowance for deferred tax asset | $ | 10.4 | \u00a0 | $ | 0.4 | $ | (0.2 | ) | $ | 10.6 | |||||
Year ended June 1, 2019: | \u00a0 | \u00a0 | |||||||||||||
Accounts receivable allowances \u2014 uncollectible accounts(1) | $ | 2.4 | \u00a0 | $ | 0.6 | $ | (0.1 | ) | $ | 2.9 | |||||
Accounts receivable allowances \u2014 credit memo(2) | $ | 0.5 | \u00a0 | $ | \u2014 | $ | 0.1 | $ | 0.6 | ||||||
Allowance for possible losses on notes receivable | $ | 0.4 | \u00a0 | $ | (0.1 | ) | $ | \u2014 | $ | 0.3 | |||||
Valuation allowance for deferred tax asset | $ | 10.3 | \u00a0 | $ | 0.4 | $ | (0.3 | ) | $ | 10.4 | |||||
Year ended June 2, 2018: | |||||||||||||||
Accounts receivable allowances \u2014 uncollectible accounts(1) | $ | 2.3 | \u00a0 | $ | 0.6 | $ | (0.5 | ) | $ | 2.4 | |||||
Accounts receivable allowances \u2014 credit memo\u00a0(2) | $ | 0.4 | \u00a0 | $ | 0.1 | $ | \u2014 | $ | 0.5 | ||||||
Allowance for possible losses on notes receivable | $ | 0.9 | \u00a0 | $ | (0.5 | ) | $ | \u2014 | $ | 0.4 | |||||
Valuation allowance for deferred tax asset | $ | 10.0 | \u00a0 | $ | 0.5 | $ | (0.2 | ) | $ | 10.3 |