Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 02, 2019 | Apr. 08, 2019 | |
Document Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Common Stock, Shares Outstanding | 58,812,564 | |
Entity Registrant Name | MILLER HERMAN INC | |
Entity Central Index Key | 0000066382 | |
Document Period End Date | Mar. 2, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --06-01 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 619 | $ 578.4 | $ 1,896.2 | $ 1,763.2 |
Cost of sales | 398 | 372.6 | 1,214.5 | 1,118.5 |
Gross margin | 221 | 205.8 | 681.7 | 644.7 |
Operating expenses: | ||||
Selling, general and administrative | 153.7 | 149 | 476.5 | 449.6 |
Restructuring and impairment expenses | 0.3 | 0 | 1.7 | 1.9 |
Design and research | 19.2 | 18.1 | 56.6 | 54.6 |
Total operating expenses | 173.2 | 167.1 | 534.8 | 506.1 |
Operating earnings | 47.8 | 38.7 | 146.9 | 138.6 |
Other expenses: | ||||
Interest expense | 3 | 3.2 | 9.1 | 10.6 |
Other, net | (0.8) | (0.7) | (1.3) | (1.7) |
Earnings before income taxes and equity income | 45.6 | 36.2 | 139.1 | 129.7 |
Income tax expense | 7.3 | 6.9 | 27.3 | 35.4 |
Equity income from nonconsolidated affiliates, net of tax | 1 | 0.7 | 2.8 | 2.2 |
Net earnings | 39.3 | 30 | 114.6 | 96.5 |
Net earnings attributable to noncontrolling interests | 0.1 | 0.2 | 0.1 | 0.2 |
Net earnings attributable to Herman Miller, Inc. | $ 39.2 | $ 29.8 | $ 114.5 | $ 96.3 |
Earnings per share — basic | $ 0.67 | $ 0.50 | $ 1.94 | $ 1.61 |
Earnings per share — diluted | $ 0.66 | $ 0.49 | $ 1.92 | $ 1.60 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | $ 8 | $ 1.7 | $ (4.4) | $ 6.3 |
Pension and other post-retirement plans | 0.6 | 0.9 | 1.7 | 2.6 |
Interest rate swaps | (4.4) | 5.9 | (3.9) | 6.9 |
Unrealized holding loss | 0.1 | 0 | 0 | 0 |
Other comprehensive income (loss) | 4.3 | 8.5 | (6.6) | 15.8 |
Comprehensive income | 43.6 | 38.5 | 108 | 112.3 |
Comprehensive income attributable to noncontrolling interests | 0.1 | 0.2 | 0.1 | 0.2 |
Comprehensive income attributable to Herman Miller, Inc. | $ 43.5 | $ 38.3 | $ 107.9 | $ 112.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 113.5 | $ 203.9 |
Short-term investments | 8.9 | 8.6 |
Accounts and notes receivable, net | 221 | 217.4 |
Unbilled accounts receivable | 25.5 | 1.9 |
Inventories, net | 191.9 | 162.4 |
Prepaid expenses and other | 58.2 | 51.2 |
Total current assets | 619 | 645.4 |
Property and equipment, at cost | 1,068.1 | 1,020.8 |
Less — accumulated depreciation | (729.3) | (689.4) |
Net property and equipment | 338.8 | 331.4 |
Goodwill | 304 | 304.1 |
Indefinite-lived intangibles | 78.1 | 78.1 |
Other amortizable intangibles, net | 42.6 | 41.3 |
Other noncurrent assets | 146.7 | 79.2 |
Total Assets | 1,529.2 | 1,479.5 |
Current Liabilities: | ||
Accounts payable | 175.7 | 171.4 |
Accrued compensation and benefits | 73.9 | 86.3 |
Accrued warranty | 52.5 | 51.5 |
Customer deposits | 36.4 | 27.6 |
Other accrued liabilities | 80.4 | 77 |
Total current liabilities | 418.9 | 413.8 |
Long-term debt | 281.9 | 275 |
Pension and post-retirement benefits | 13.6 | 15.6 |
Other liabilities | 79.2 | 79.8 |
Total Liabilities | 793.6 | 784.2 |
Redeemable noncontrolling interests | 20.7 | 30.5 |
Stockholders' Equity: | ||
Preferred stock, no par value (10,000,000 shares authorized, none issued) | 0 | 0 |
Common stock, $0.20 par value (240,000,000 shares authorized, 58,823,817 and 59,230,974 shares issued and outstanding in 2019 and 2018, respectively) | 11.8 | 11.7 |
Additional paid-in capital | 92 | 116.6 |
Retained earnings | 678.3 | 598.3 |
Accumulated other comprehensive loss | (66.5) | (61.3) |
Key executive deferred compensation plans | (0.8) | (0.7) |
Herman Miller, Inc. Stockholders' Equity | 714.8 | 664.6 |
Noncontrolling Interests | 0.1 | 0.2 |
Total Stockholders' Equity | 714.9 | 664.8 |
Total Liabilities, Redeemable Noncontrolling Interests, and Stockholders' Equity | $ 1,529.2 | $ 1,479.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 02, 2019 | Jun. 02, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock Value | $ 0 | $ 0 |
Preferred stock Shares Authorized | 10,000,000 | 10,000,000 |
Preferred stock Shares Issued | 0 | 0 |
Common Stock Par Value | $ 0.20 | $ 0.20 |
Common stock Shares Authorized | 240,000,000 | 240,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
Cash Flows from Operating Activities: | ||
Net earnings | $ 114.6 | $ 96.5 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 55.3 | 49.4 |
Stock-based compensation | 7.2 | 4.8 |
Pension and post-retirement expenses | 0.8 | 1.1 |
Pension contributions | 0 | (12) |
Earnings from nonconsolidated affiliates net of dividends received | (0.8) | (0.5) |
Deferred taxes | 0 | (10.3) |
Gain on sales of property and dealers | 0 | (0.8) |
Restructuring and impairment expenses | 1.7 | 1.9 |
Increase in current assets | (55.3) | (18.1) |
Increase (decrease) in current liabilities | 7.5 | (12.2) |
Increase in non-current liabilities | 0.4 | 11.4 |
Other, net | (0.8) | (0.5) |
Net Cash Provided by Operating Activities | 130.6 | 110.7 |
Cash Flows from Investing Activities: | ||
Proceeds from sale of property and dealers | 0 | 2 |
Marketable securities purchases | (1.6) | (0.7) |
Marketable securities sales | 1.3 | 0.8 |
Equity investment in non-controlled entities | (71.6) | 0 |
Capital expenditures | (63) | (51) |
Proceeds from life insurance policy | 0 | 8.1 |
Purchase of HAY licensing agreement | (4.8) | 0 |
Net advances on notes receivable | (1) | (1.1) |
Other, net | (1.7) | (0.6) |
Net Cash Used in Investing Activities | (142.4) | (42.5) |
Cash Flows from Financing Activities: | ||
Dividends paid | (34) | (31.7) |
Proceeds from issuance of long-term debt | 0 | 340.4 |
Payments of long-term debt | 0 | (265.4) |
Common stock issued | 11.1 | 15.8 |
Common stock repurchased and retired | (43.4) | (30.1) |
Purchase of redeemable noncontrolling interests | (10.1) | (1) |
Net payments from supplier financing program | (0.3) | 0 |
Other, net | 0.1 | 0.3 |
Net Cash Used in by Financing Activities | (76.6) | 28.3 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (2) | 0.3 |
Net Decrease in Cash and Cash Equivalents | (90.4) | 96.8 |
Cash and Cash Equivalents, Beginning of Period | 203.9 | 96.2 |
Cash and Cash Equivalents, End of Period | $ 113.5 | $ 193 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Key Executive Deferred Compensation | Herman Miller, Inc. Stockholders' Equity | Noncontrolling Interests |
Balance at beginning of period at Jun. 03, 2017 | $ 587.7 | $ 0 | $ 11.9 | $ 139.3 | $ 519.5 | $ (82.2) | $ (1) | $ 587.5 | $ 0.2 |
Balance at beginning of period (in shares) at Jun. 03, 2017 | 59,715,824 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 33 | 33 | 33 | ||||||
Other comprehensive income (loss) | 3.7 | 3.7 | 3.7 | ||||||
Stock-based compensation expense | 1.7 | 1.7 | 1.7 | ||||||
Exercise of stock options (in shares) | 150,556 | ||||||||
Exercise of stock options | 3.9 | $ 0.1 | 3.8 | 3.9 | |||||
Restricted and performance stock units released (in shares) | 220,850 | ||||||||
Employee stock purchase plan issuances (in shares) | 18,223 | ||||||||
Employee stock purchase plan issuances | (0.5) | (0.5) | (0.5) | ||||||
Repurchase and retirement of common stock (in shares) | (330,963) | ||||||||
Repurchase and retirement of common stock | (11.1) | (11.1) | (11.1) | ||||||
Dividends declared | (10.8) | (10.8) | (10.8) | ||||||
Redemption value adjustment | 0.2 | 0.2 | 0.2 | ||||||
Balance at end of period at Sep. 02, 2017 | 608.7 | 0 | $ 12 | 133.9 | 542.1 | (78.5) | (1) | 608.5 | 0.2 |
Balance at end of period (in shares) at Sep. 02, 2017 | 59,774,490 | ||||||||
Balance at beginning of period at Jun. 03, 2017 | 587.7 | 0 | $ 11.9 | 139.3 | 519.5 | (82.2) | (1) | 587.5 | 0.2 |
Balance at beginning of period (in shares) at Jun. 03, 2017 | 59,715,824 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 96.5 | ||||||||
Other comprehensive income (loss) | 15.8 | 15.8 | |||||||
Balance at end of period at Mar. 03, 2018 | 657.5 | 0 | $ 11.8 | 129.4 | 583 | (66.4) | (0.7) | 657.1 | 0.4 |
Balance at end of period (in shares) at Mar. 03, 2018 | 59,683,286 | ||||||||
Balance at beginning of period at Sep. 02, 2017 | 608.7 | 0 | $ 12 | 133.9 | 542.1 | (78.5) | (1) | 608.5 | 0.2 |
Balance at beginning of period (in shares) at Sep. 02, 2017 | 59,774,490 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 33.5 | 33.5 | 33.5 | ||||||
Other comprehensive income (loss) | 3.6 | 3.6 | 3.6 | ||||||
Stock-based compensation expense | 1.1 | 1.1 | 1.1 | ||||||
Exercise of stock options (in shares) | 37,469 | ||||||||
Exercise of stock options | 0.9 | 0.9 | 0.9 | ||||||
Restricted and performance stock units released (in shares) | 14,424 | ||||||||
Employee stock purchase plan issuances (in shares) | 15,192 | ||||||||
Employee stock purchase plan issuances | (0.6) | (0.6) | (0.6) | ||||||
Repurchase and retirement of common stock (in shares) | (177,511) | ||||||||
Repurchase and retirement of common stock | (6.2) | $ (0.1) | (6.1) | (6.2) | |||||
Dividends declared | (10.8) | (10.8) | (10.8) | ||||||
Redemption value adjustment | (0.3) | (0.3) | (0.3) | ||||||
Balance at end of period at Dec. 02, 2017 | 631 | 0 | $ 11.9 | 130.4 | 564.4 | (74.9) | (1) | 630.8 | 0.2 |
Balance at end of period (in shares) at Dec. 02, 2017 | 59,664,064 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 30 | 29.8 | 29.8 | 0.2 | |||||
Other comprehensive income (loss) | 8.5 | 8.5 | 8.5 | ||||||
Stock-based compensation expense | 1.8 | 1.8 | 1.8 | ||||||
Exercise of stock options (in shares) | 318,540 | ||||||||
Exercise of stock options | 9.3 | 9.3 | 9.3 | ||||||
Restricted and performance stock units released (in shares) | 11,886 | ||||||||
Restricted and performance stock units released | 0.2 | 0.2 | 0.2 | ||||||
Employee stock purchase plan issuances (in shares) | 16,817 | ||||||||
Employee stock purchase plan issuances | (0.4) | (0.4) | (0.4) | ||||||
Repurchase and retirement of common stock (in shares) | (336,849) | ||||||||
Repurchase and retirement of common stock | (12.8) | $ (0.1) | (12.7) | (12.8) | |||||
Stock Issued During Period, Shares, Issued for Services | 8,828 | ||||||||
Stock Issued During Period, Value, Issued for Services | 0.4 | 0.4 | 0.4 | ||||||
Stock Issued During Period, Value, Deferred Compensation Plan | (0.1) | (0.4) | 0.3 | (0.1) | |||||
Dividends declared | (10.8) | (10.8) | (10.8) | ||||||
Redemption value adjustment | (0.4) | (0.4) | (0.4) | ||||||
Balance at end of period at Mar. 03, 2018 | 657.5 | 0 | $ 11.8 | 129.4 | 583 | (66.4) | (0.7) | 657.1 | 0.4 |
Balance at end of period (in shares) at Mar. 03, 2018 | 59,683,286 | ||||||||
Balance at beginning of period at Jun. 02, 2018 | 664.8 | 0 | $ 11.7 | 116.6 | 598.3 | (61.3) | (0.7) | 664.6 | 0.2 |
Balance at beginning of period (in shares) at Jun. 02, 2018 | 59,230,974 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 35.8 | 35.8 | 35.8 | ||||||
Other comprehensive income (loss) | (7.8) | (7.8) | (7.8) | ||||||
Stock-based compensation expense | 2.2 | 2.2 | 2.2 | ||||||
Exercise of stock options (in shares) | 265,739 | ||||||||
Exercise of stock options | 8.1 | $ 0.2 | 7.9 | 8.1 | |||||
Restricted and performance stock units released (in shares) | 335,266 | ||||||||
Restricted and performance stock units released | 0.1 | $ 0.1 | 0.1 | ||||||
Employee stock purchase plan issuances (in shares) | 16,805 | ||||||||
Employee stock purchase plan issuances | (0.5) | (0.5) | (0.5) | ||||||
Repurchase and retirement of common stock (in shares) | (545,866) | ||||||||
Repurchase and retirement of common stock | (20.8) | $ (0.1) | (20.7) | (20.8) | |||||
Dividends declared | (11.6) | (11.6) | (11.6) | ||||||
Balance at end of period at Sep. 01, 2018 | 673.2 | 0 | $ 11.9 | 106.5 | 624.5 | (69.2) | (0.7) | 673 | 0.2 |
Balance at end of period (in shares) at Sep. 01, 2018 | 59,302,918 | ||||||||
Balance at beginning of period at Jun. 02, 2018 | 664.8 | 0 | $ 11.7 | 116.6 | 598.3 | (61.3) | (0.7) | 664.6 | 0.2 |
Balance at beginning of period (in shares) at Jun. 02, 2018 | 59,230,974 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 114.6 | ||||||||
Other comprehensive income (loss) | (6.6) | (6.6) | |||||||
Balance at end of period at Mar. 02, 2019 | 714.9 | 0 | $ 11.8 | 92 | 678.3 | (66.5) | (0.8) | 714.8 | 0.1 |
Balance at end of period (in shares) at Mar. 02, 2019 | 58,823,817 | ||||||||
Balance at beginning of period at Sep. 01, 2018 | 673.2 | 0 | $ 11.9 | 106.5 | 624.5 | (69.2) | (0.7) | 673 | 0.2 |
Balance at beginning of period (in shares) at Sep. 01, 2018 | 59,302,918 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 39.3 | 39.3 | 39.3 | ||||||
Other comprehensive income (loss) | (3.1) | (3.1) | (3.1) | ||||||
Stock-based compensation expense | 2.5 | 2.5 | 2.5 | ||||||
Exercise of stock options (in shares) | 53,614 | ||||||||
Exercise of stock options | 1.3 | 1.3 | 1.3 | ||||||
Restricted and performance stock units released (in shares) | 7,511 | ||||||||
Employee stock purchase plan issuances (in shares) | 14,813 | ||||||||
Employee stock purchase plan issuances | (0.5) | (0.5) | (0.5) | ||||||
Repurchase and retirement of common stock (in shares) | (476,854) | ||||||||
Repurchase and retirement of common stock | (16.6) | $ (0.1) | (16.5) | (16.6) | |||||
Dividends declared | (11.7) | (11.7) | (11.7) | ||||||
Balance at end of period at Dec. 01, 2018 | 685.4 | 0 | $ 11.8 | 94.3 | 650.6 | (70.8) | (0.7) | 685.2 | 0.2 |
Balance at end of period (in shares) at Dec. 01, 2018 | 58,902,002 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net earnings | 39.3 | 39.2 | 39.2 | 0.1 | |||||
Other comprehensive income (loss) | 4.3 | 4.3 | 4.3 | ||||||
Stock-based compensation expense | 2.6 | 2.8 | 2.8 | (0.2) | |||||
Exercise of stock options (in shares) | 3,197 | ||||||||
Restricted and performance stock units released (in shares) | 75,917 | ||||||||
Restricted and performance stock units released | 0.1 | 0.1 | 0.1 | ||||||
Employee stock purchase plan issuances (in shares) | 16,253 | ||||||||
Employee stock purchase plan issuances | (0.5) | (0.5) | (0.5) | ||||||
Repurchase and retirement of common stock (in shares) | (183,737) | ||||||||
Repurchase and retirement of common stock | (6) | (6) | (6) | ||||||
Stock Issued During Period, Shares, Issued for Services | 10,185 | ||||||||
Stock Issued During Period, Value, Issued for Services | 0.3 | 0.3 | 0.3 | ||||||
Stock Issued During Period, Value, Deferred Compensation Plan | (0.1) | (0.1) | (0.1) | ||||||
Dividends declared | (11.5) | (11.5) | (11.5) | ||||||
Balance at end of period at Mar. 02, 2019 | $ 714.9 | $ 0 | $ 11.8 | $ 92 | $ 678.3 | (66.5) | $ (0.8) | $ 714.8 | $ 0.1 |
Balance at end of period (in shares) at Mar. 02, 2019 | 58,823,817 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of accounting change | $ 1.4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared | $ 0.1975 | $ 0.1975 | $ 0.1975 | $ 0.1800 | $ 0.1800 | $ 0.1800 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation The condensed consolidated financial statements have been prepared by Herman Miller, Inc. (“the Company”) in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Management believes the disclosures made in this document are adequate with respect to interim reporting requirements. The accompanying unaudited condensed consolidated financial statements, taken as a whole, contain all adjustments that are of a normal recurring nature necessary to present fairly the financial position of the Company as of March 2, 2019 . Operating results for the three and nine months ended March 2, 2019 , are not necessarily indicative of the results that may be expected for the year ending June 1, 2019 . It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended June 2, 2018 |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Mar. 02, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | Recently Issued Accounting Standards Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Revenue from Contracts with Customers The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The standard allows for two adoption methods, a full retrospective or modified retrospective approach. June 3, 2018 The Company adopted the standard effective June 3, 2018 using the modified retrospective method. Refer to Note 3 to the financial statements for further information regarding the adoption of the standard. Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The standard provides guidance for the measurement, presentation and disclosure of financial assets and liabilities. The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any change in fair value in net income. The standard does not permit early adoption and at adoption a cumulative-effect adjustment to beginning retained earnings should be recorded. June 3, 2018 The Company adopted the standard effective June 3, 2018 using the modified retrospective method. As a result, the Company reclassified $0.1 million of net gains on mutual fund equity securities, that were formerly classified as available for sale securities before the adoption of the new standard, from Accumulated other comprehensive loss to Retained earnings. The impact of adoption also resulted in certain disclosure changes. Refer to Note 11 of the financial statements for further information. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Early adoption is permitted. September 2, 2018 The Company early adopted the standard prospectively effective September 2, 2018. The impacts resulting from adoption did not have an impact on the Company’s Financial Statements. Recently Adopted Accounting Standards (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update allows for the reclassification to retained earnings of the tax effects stranded in Accumulated Other Comprehensive Income resulting from The Tax Cuts and Jobs Act. Early adoption is permitted. September 2, 2018 The Company early adopted the standard effective September 2, 2018 and reclassified $1.5 million from Accumulated other comprehensive loss to Retained earnings related to the tax impact of the Company’s interest rate swap agreements. Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard changes the rules related to the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. Under the new guidance, entities must present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs related to services rendered during the period. Other components of net periodic benefit cost will be presented separately from the line items that include the service cost. Early adoption is permitted. June 3, 2018 The Company retrospectively adopted the standard effective June 3, 2018. Prior to adoption, the Company recorded net periodic benefit costs related to its defined benefit pension and post-retirement medical plans within Selling, general and administrative expenses. As a result of adoption, these costs are recorded within Other, net. The Company retrospectively reclassified these costs in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended March 3, 2018 from Selling, general and administrative to Other, net. Refer to Note 7 of the financial statements for further information. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities This update amends the hedge accounting recognition and presentation with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting. The update expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments and permits the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. June 2, 2019 The Company is currently evaluating the impact of adopting this guidance. Leases Under the updated standard a lessee's rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. The standard must be adopted under a modified retrospective approach and early adoption is permitted. June 2, 2019 The standard is expected to have a significant impact on our Consolidated Financial Statements. The Company does not expect the Statement of Comprehensive Income to be significantly impacted. However, the impact to the balance sheet of recording right of use assets and lease liabilities for the Company’s operating leases, as well as the necessary financial statement disclosures, is expected to be significant. The Company has assembled a project team and is working towards implementation of the lease accounting standard. The Company has substantially completed its identification of the global lease population and the data migration to a lease integration tool that will support the accounting and disclosure requirements under the standard. The Company is currently completing its review and testing of the data entered into the tool and is developing accounting policies and internal controls over the post-implementation lease accounting activities. Recently Issued Accounting Standards Not Yet Adopted (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters 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 The Company is currently evaluating the impact of adopting this guidance. 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, and an entity is also permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. May 31, 2020 The Company is currently evaluating the impact of adopting this guidance. 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 postretirement plans. Early adoption is permitted. May 30, 2021 The Company is currently evaluating the impact of adopting this guidance. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Mar. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Impact of Adoption The Company adopted ASC 606 - Revenue from Contracts with Customers at the beginning of fiscal year 2019. The Company completed its review of the impact of the new standard and identified certain key accounting policy changes that resulted from adopting the new standard. These included changes to the identification of performance obligations for commercial contracts in which the Company sells directly to end customers. Under previous accounting rules, which were codified under ASC 605, the Company generally delayed revenue recognition until the products were shipped and installed as the Company had concluded that contracts that contained both products and services represented a single, combined deliverable. However, under ASC 606, the Company has determined that products and services are distinct and as such, represent separate performance obligations. The Company also determined that under ASC 606, certain product pricing elements related to its direct customer sales should be recorded within Cost of sales rather than net within Net sales as had been historical practice under ASC 605. The Company adopted ASC 606 using the modified retrospective approach and applied the guidance therein to all applicable contracts that were not complete as of the date of adoption. As a result of these changes in accounting, the Company recorded a cumulative adjustment to retained earnings of $1.9 million on the date of adoption. With the change in performance obligations under ASC 606, product revenue recognition is accelerated on certain direct commercial customer sales. As a result, the cumulative adjustment recorded upon the adoption of ASC 606 had the impact of reducing inventory for sales transactions that would have been recognized in a prior period under ASC 606 and recording unbilled receivables for the amounts owed prior to invoicing. Additionally, the cumulative adjustment reflects the change in accrued expenses, including income taxes payable, related to these sales transactions. The cumulative impact to our Condensed Consolidated Balance Sheet as of June 3, 2018 was as follows: Balance at Adjustments due Balance at (In millions) June 2, 2018 to ASC 606 June 3, 2018 Balance Sheet Assets: Unbilled accounts receivable $ 1.9 $ 11.1 $ 13.0 Inventories, net 162.4 (7.1 ) 155.3 Liabilities: Accrued compensation and benefits 86.3 0.2 86.5 Other accrued liabilities 77.0 1.9 78.9 Equity: Retained earnings 598.3 1.9 600.2 In accordance with the modified retrospective adoption rules per ASC 606, the Company has disclosed in the tables below the differences in our financial statements due to the adoption of the standard. The “As reported” column represents the financial statement values recorded in accordance with ASC 606, while the “Legacy GAAP” column represents what the financial statement values would have been under ASC 605, had the new standard not been adopted. Three Months Ended March 2, 2019 (In millions) As reported Performance Obligation Change Gross vs. Net Change Legacy GAAP Statement of Comprehensive Income Net sales $ 619.0 $ 7.4 $ (9.6 ) $ 616.8 Cost of sales 398.0 4.1 (9.6 ) 392.5 Gross margin 221.0 3.3 224.3 Total operating expenses 173.2 0.1 173.3 Operating earnings 47.8 3.2 51.0 Income tax expense 7.3 0.5 7.8 Net earnings 39.3 2.7 42.0 Nine Months Ended March 2, 2019 (In millions) As reported Performance Obligation Change Gross vs. Net Change Legacy GAAP Statement of Comprehensive Income Net sales $ 1,896.2 $ (10.8 ) $ (28.1 ) $ 1,857.3 Cost of sales 1,214.5 (6.0 ) (28.1 ) 1,180.4 Gross margin 681.7 (4.8 ) 676.9 Total operating expenses 534.8 — 534.8 Operating earnings 146.9 (4.8 ) 142.1 Income tax expense 27.3 (1.1 ) 26.2 Net earnings 114.6 (3.7 ) 110.9 As of March 2, 2019 (In millions) As reported Performance Obligation Change Gross vs. Net Change Legacy GAAP Balance Sheet Assets: Unbilled accounts receivable $ 25.5 $ (21.9 ) $ 3.6 Inventories, net 191.9 12.8 204.7 Liabilities: Accrued compensation and benefits 73.9 (0.3 ) 73.6 Other accrued liabilities 80.4 (3.1 ) 77.3 Equity: Retained earnings 678.3 (5.6 ) 672.7 There was no impact on Net Cash Provided by Operating Activities within the Company's Condensed Consolidated Statement of Cash Flows as a result of adopting ASC 606. Accounting Policies The Company recognizes revenue when performance obligations, based on the terms of customer contracts, are satisfied. This happens when control of goods and services based on the contract have been conveyed to the customer. Revenue for the sale of products is typically recognized at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. Revenue for services, including the installation of products by the Company's owned dealers, is recognized over time as the services are provided. The method of revenue recognition may vary, depending on the type of contract with the customer, as noted in the section Disaggregated Revenue further below. The Company's contracts with customers include master agreements and certain other forms of contracts, which do not reach the level of a performance obligation until a purchase order is received from a customer. At the point in time that a purchase order under a contract is received by the Company, the collective group of documents represent an enforceable contract between the Company and the customer. While certain customer contracts may have a duration of greater than a year, all purchase orders are less than a year in duration. As of March 2, 2019 , all unfulfilled performance obligations are expected to be fulfilled in the next twelve months. Variable consideration exists within certain contracts that the Company has with customers. When variable consideration is present in a contract with a customer, the Company estimates the amount that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. These estimates are primarily related to rebate programs which involve estimating future sales amounts and rebate percentages to use in the determination of transaction price. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Adjustments to Net sales from changes in variable consideration related to performance obligations completed in previous periods are not material to the Company's financial statements. Also, the Company has no contracts with significant financing components. The Company adopted the following accounting policies as a result of adopting the new standard on revenue recognition: – Shipping and Handling Activities - the Company accounts for shipping and handling activities as fulfillment activities and these costs are accrued within Cost of sales at the same time revenue is recognized. – Sales Taxes - the Company does not record revenue for sales tax, value added tax or other taxes that are collected on behalf of government entities. The Company’s revenue is recorded net of these taxes as they are passed through to the relevant government entities. – Incremental Costs of Obtaining a Contract - the Company has recognized incremental costs to obtain a contract as an expense when incurred as the amortization period is less than one year. – Significant Financing Component - the Company has not adjusted the amount of consideration to be received for any significant financing components as the Company’s contracts have a duration of one year or less. Disaggregated Revenue The Company’s revenue is comprised primarily of sales of products and installation services. Depending on the type of contract, the method of accounting and timing of revenue recognition may differ. Below, descriptions have been provided that summarize the Company’s different types of contracts and how revenue is recognized for each. – 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 Consumer reportable segment, as well as customer purchase orders for the Maharam subsidiary within the Specialty reportable 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. – 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’s Condensed Consolidated Statements of Comprehensive Income. In certain instances, entities owned by the Company, rather than independent third-party dealers, perform installation and other services. In these cases, Service revenue is generated by the Company’s entities that provide installation services, which include owned dealers, and is recognized by the Company over time as the services are provided. For c ontracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on relative standalone selling prices. – 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’s sales channel. Revenue disaggregated by contract type has been provided in the table below: Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 2, 2019 Net Sales: Single performance obligation Product revenue $ 524.5 $ 1,599.0 Multiple performance obligations Product revenue 89.0 281.7 Service revenue 2.8 8.7 Other 2.7 6.8 Total $ 619.0 $ 1,896.2 Revenue disaggregated by product type and reportable segment has been provided in the table below: Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 2, 2019 North American Furniture Solutions: Systems $ 127.5 $ 415.7 Seating 93.2 289.8 Freestanding and storage 73.5 226.8 Other 26.7 85.5 Total North American Furniture Solutions $ 320.9 $ 1,017.8 ELA Furniture Solutions: Systems $ 26.8 $ 78.0 Seating 71.8 202.7 Freestanding and storage 14.5 38.7 Other 12.9 40.5 Total ELA Furniture Solutions $ 126.0 $ 359.9 Specialty: Systems $ 1.2 $ 4.5 Seating 29.5 85.4 Freestanding and storage 17.9 55.5 Textiles 26.5 84.8 Other 1.0 4.8 Total Specialty $ 76.1 $ 235.0 Consumer: Seating $ 59.2 $ 171.0 Freestanding and storage 15.2 49.2 Other 21.6 63.3 Total Consumer $ 96.0 $ 283.5 Total $ 619.0 $ 1,896.2 Refer to Note 16 of the Condensed Consolidated Financial Statements for further information related to our reportable segments. Contract Assets and Contract Liabilities The Company records contract assets and contract liabilities related to its revenue generating activities. Contract assets include certain receivables from customers that are unconditional as all performance obligations with respect to the contract with the customer have been completed. These amounts represent trade receivables and they are recorded within the caption “Accounts and notes receivable, net” in the Condensed Consolidated Balance Sheets. The payment terms for the Company's customers differs depending on the type of customer. For third-party dealers and commercial contract customers, standard credit terms apply. Sales transacted through the Company's direct to consumer channels are generally paid for by the customer at point of sale. Contract assets also include amounts that are conditional because certain performance obligations in the contract with the customer are incomplete as of the balance sheet date. These contract assets generally arise due to contracts with the customer that include multiple performance obligations, both the product that is shipped to the customer by the Company, as well as installation services provided by independent third-party dealers. For these contracts, the Company recognizes revenue upon satisfaction of the product performance obligation. However, the asset is conditional and the customer is not invoiced by the Company until the installation performance obligation is completed. These contract assets are included in the caption "Unbilled accounts receivable" in the Condensed Consolidated Balance Sheets until all performance obligations in the contract with the customer have been satisfied. Contract liabilities represent deposits made by customers before the satisfaction of performance obligation(s) are complete and revenue is recognized. Upon completion of the performance obligation(s) that the Company has with the customer based on the terms of the contract, the liability for the customer deposit is relieved and revenue is recognized. These customer deposits are included within the caption “Customer deposits” in the Condensed Consolidated Balance Sheets. During the three and nine months ended March 2, 2019 , the Company recognized Net sales of $17.8 million and $26.6 million , respectively, related to customer deposits there were included in the balance sheet as of December 1, 2018 and June 2, 2018 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Mar. 02, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions and Divestitures Maars Holding B.V. On August 31, 2018, Herman Miller Holdings Limited, a wholly owned subsidiary of the Company, acquired 48% of the outstanding equity of Maars Holding B.V. ("Maars”), a Harderwijk, Netherlands-based worldwide leader in the design and manufacturing of interior wall solutions. The Company acquired its 48% ownership interest in Maars for approximately $6.1 million in cash. The entity is accounted for using the equity method of accounting as the Company has significant influence, but not control, over the entity. For the Maars equity method investment, the fair values assigned to the assets acquired were based on best estimates and assumptions as of the reporting date and are considered preliminary pending completion of the valuation analysis. Nine United Denmark A/S On June 7, 2018, Herman Miller Holdings Limited, a wholly owned subsidiary of the Company, acquired 33% of the outstanding equity of Nine United Denmark A/S, d/b/a HAY ("HAY”), a Copenhagen, Denmark-based, design leader in furniture and ancillary furnishings for residential and contract markets in Europe and Asia. The Company acquired its 33% ownership interest in HAY for approximately $65.5 million in cash. The entity is accounted for using the equity method of accounting as the Company has significant influence, but not control, over the entity. The Company also acquired the rights to the HAY brand in North America under a long-term license agreement for approximately $4.8 million in cash. This licensing agreement is recorded as an amortizing intangible asset and is being amortized over its 15-year useful life. This asset is recorded within Other amortizable intangibles, net within the Condensed Consolidated Balance Sheets. For the Hay equity method investment, the fair values assigned to the assets acquired were based on best estimates and assumptions as of the reporting date and the valuation analysis was completed in the third quarter of fiscal 2019 with no differences noted from the preliminary valuation. Contract Furniture Dealerships On July 31, 2017, the Company completed the sale of a wholly-owned contract furniture dealership in Vancouver, Canada for initial cash consideration of $2.0 million . A pre-tax gain of $1.1 million |
Inventories
Inventories | 9 Months Ended |
Mar. 02, 2019 | |
Inventories [Abstract] | |
Inventories, Net | Inventories, net (In millions) March 2, 2019 June 2, 2018 Finished goods $ 147.1 $ 124.2 Raw materials 44.8 38.2 Total $ 191.9 $ 162.4 |
Goodwill and Indefinite-lived I
Goodwill and Indefinite-lived Intangibles | 9 Months Ended |
Mar. 02, 2019 | |
Goodwill and Indefinite-lived Intangibles [Abstract] | |
Goodwill and Indefinite-lived Intangibles | Goodwill and Indefinite-lived Intangibles Goodwill and other indefinite-lived intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following as of March 2, 2019 and June 2, 2018 : (In millions) Goodwill Indefinite-lived Intangible Assets Total Goodwill and Indefinite-lived Intangible Assets June 2, 2018 $ 304.1 $ 78.1 $ 382.2 Foreign currency translation adjustments (0.1 ) — (0.1 ) March 2, 2019 $ 304.0 $ 78.1 $ 382.1 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Mar. 02, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following table summarizes the components of net periodic benefit costs for the Company's International defined benefit pension plan for the three and nine months ended : Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Interest cost $ 0.7 $ 0.8 $ 2.0 $ 2.5 Expected return on plan assets (1.1 ) (1.7 ) (3.3 ) (5.3 ) Net amortization loss 0.7 1.3 2.0 3.9 Net periodic benefit cost $ 0.3 $ 0.4 $ 0.7 $ 1.1 The Company retrospectively adopted ASU 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on June 3, 2018. As the Company's pension and post retirement medical plans are frozen and not open to new plan participants, these plans no longer have a service component in net periodic benefit cost. Prior to adoption, the Company recorded net periodic benefit costs related to its defined benefit pension and post-retirement medical plans within Selling, general and administrative expenses. As a result of adoption, these costs are recorded within Other, net. The Company retrospectively reclassified $0.4 million and $1.2 million of net periodic benefit cost in the Condensed Consolidated Statements of Comprehensive Income for the three and nine month periods ended March 3, 2018, respectively, from Selling, general and administrative to Other, net. The Company made a voluntary contribution of $12.0 million |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 02, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the numerators and denominators used in the calculations of basic and diluted earnings per share (EPS) for the three and nine months ended: Three Months Ended Nine Months Ended March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Numerators : Numerator for both basic and diluted EPS, Net earnings attributable to Herman Miller, Inc. - in millions $ 39.2 $ 29.8 $ 114.5 $ 96.3 Denominators : Denominator for basic EPS, weighted-average common shares outstanding 58,838,958 59,691,709 59,087,899 59,753,271 Potentially dilutive shares resulting from stock plans 288,300 670,375 360,395 620,943 Denominator for diluted EPS 59,127,258 60,362,084 59,448,294 60,374,214 Antidilutive equity awards not included in weighted-average common shares - diluted 401,811 101,763 211,097 381,446 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 02, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the stock-based compensation expense and related income tax effect for the three and nine months ended : Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Stock-based compensation expense $ 2.2 $ 1.8 $ 7.2 $ 4.8 Related income tax effect 0.5 0.5 1.6 1.4 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognizes interest and penalties related to uncertain tax benefits through income tax expense in its Condensed Consolidated Statement of Comprehensive Income. Interest and penalties recognized in the Company's Condensed Consolidated Statement of Comprehensive Income were negligible for the three and nine months ended March 2, 2019 and March 3, 2018 . The Company's recorded liability for potential interest and penalties related to uncertain tax benefits was: (In millions) March 2, 2019 June 2, 2018 Liability for interest and penalties $ 1.0 $ 1.0 The components of the Company's unrecognized tax benefits are as follows: (In millions) Balance at June 2, 2018 $ 3.2 Increases related to current year income tax positions 0.3 Decreases related to settlements (1.1 ) Balance at March 2, 2019 $ 2.4 The balance of unrecognized tax benefits would impact the effective tax rate if recognized. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law in the United States. The effects of the Act included the reduction of the federal corporate income tax rate from 35% to 21% and a new participation exemption system of taxation on foreign earnings, among other provisions. In accordance with Staff Accounting Bulletin 118, for the year ended June 2, 2018, the Company recorded a provisional tax benefit of $3.1 million from the impact of the Act. Subsequently, as the U.S. Treasury Department issued additional guidance, the Company recorded adjustments to the provisional tax benefit. During the third quarter of fiscal 2019, the Company completed its accounting for all the effects of the Act. Through the three month and nine month periods ended March 2, 2019, the Company recorded adjustments to the provisional amount to increase the income tax benefit from the Act by $1.8 million and $1.0 million , respectively. The U.S. Treasury Department and the Internal Revenue Service is expected to continue issuing additional guidance related to the Act, which could have a material impact to the provision for income taxes. If applicable, the Company would recognize any adjustments in the provision for income taxes in the period additional guidance is issued. Besides the one-time U.S. tax liability on undistributed foreign earnings as required by the Act, no other provision was made for income taxes that may result from future remittances of undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested. Determination of the total amount of unrecognized deferred income tax on undistributed earnings of foreign subsidiaries is not practicable. For tax years beginning after December 31, 2017, the Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company will account for tax expense related to GILTI in the year the tax is incurred. In determining the provision for income taxes for the three and nine month periods ended March 2, 2019 , the Company used an estimated annual effective tax rate which was based on expected annual income and statutory tax rates across the various jurisdictions in which it operates, which included effects of the Act. The effective tax rates were 16.0% and 19.0% , respectively, for the three month period s ended March 2, 2019 and March 3, 2018 . The effective tax rates were 19.6% and 27.3% , respectively, for the nine month period s ended March 2, 2019 and March 3, 2018 . The year over year decrease in the effective tax rate for the three and nine months ended March 2, 2019 was the result of the Act. The effective tax rate for the three and nine months ended March 2, 2019 and March 3, 2018 is lower than the United States federal statutory rate due to the mix of earnings in taxing jurisdictions that had rates that were lower than the United States federal statutory rate, along with the research and development tax credit under the Protecting Americans from Tax Hikes ("PATH") Act of 2015. The Company is subject to periodic audits by domestic and foreign tax authorities. Currently, the Company is undergoing routine periodic audits in both domestic and foreign tax jurisdictions. It is reasonably possible that the amounts of unrecognized tax benefits could change in the next twelve months because of the audits. Tax payments related to these audits, if any, are not expected to be material to the Company's Condensed Consolidated Statements of Comprehensive Income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company's financial instruments consist of cash equivalents, marketable securities, accounts and notes receivable, deferred compensation plan, accounts payable, debt, redeemable noncontrolling interests, interest rate swaps and foreign currency exchange contracts. The Company's financial instruments, other than long-term debt, are recorded at fair value. The carrying value and fair value of the Company's long-term debt, including current maturities, is as follows for the periods indicated: (In millions) March 2, 2019 June 2, 2018 Carrying value $ 285.4 $ 285.8 Fair value $ 288.1 $ 288.6 The following describes the methods the Company uses to estimate the fair value of financial assets and liabilities, which have not significantly changed in the current period: Cash and cash equivalents — The Company invests excess cash in short term investments in the form of commercial paper and money market funds. Commercial paper is valued at amortized costs while money market funds are valued using net asset value ("NAV"). Equity securities — The Company's equity securities primarily include equity mutual funds. The equity mutual fund investments are recorded at fair value using quoted prices for similar securities. Available-for-sale securities — The Company's available-for-sale marketable securities primarily include fixed income mutual funds and government obligations. These investments are recorded at fair value using quoted prices for similar securities. Foreign currency exchange contracts — The Company's foreign currency exchange contracts are valued using an approach based on foreign currency exchange rates obtained from active markets. The estimated fair value of forward currency exchange contracts is based on month-end spot rates as adjusted by market-based current activity. These forward contracts are not designated as hedging instruments. Interest rate swap agreements — The value of the Company's interest rate swap agreements is determined using a market approach based on rates obtained from active markets. The interest rate swap agreements are designated as cash flow hedging instruments. Deferred compensation plan — The Company's deferred compensation plan primarily includes various domestic and international mutual funds that are recorded at fair value using quoted prices for similar securities. Other — The Company's contingent consideration liabilities and redeemable noncontrolling interests are deemed to be level 3 fair value measurements. Refer to Note 15 for further information regarding redeemable noncontrolling interests. The following table sets forth financial assets and liabilities measured at fair value through net income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of March 2, 2019 and June 2, 2018 . (In millions) March 2, 2019 June 2, 2018 Financial Assets NAV Quoted Prices with Other Observable Inputs (Level 2) Management Estimate (Level 3) NAV Quoted Prices with Management Estimate (Level 3) Cash equivalents: Money market funds $ 31.0 $ — $ — $ 121.0 $ — $ — Mutual funds - equity — 0.9 — — 0.9 — Foreign currency forward contracts — 0.7 — — 0.4 — Deferred compensation plan — 15.9 — — 15.1 — Total $ 31.0 $ 17.5 $ — $ 121.0 $ 16.4 $ — Financial Liabilities Foreign currency forward contracts $ — $ 0.3 $ — $ — $ 0.3 $ — Contingent consideration — — 0.4 — — 0.5 Total $ — $ 0.3 $ 0.4 $ — $ 0.3 $ 0.5 The following table sets forth financial assets measured at fair value through other comprehensive income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of March 2, 2019 and June 2, 2018 . (In millions) March 2, 2019 June 2, 2018 Financial Assets Quoted Prices with Other Observable Inputs (Level 2) Management Estimate (Level 3) Quoted Prices with Management Estimate (Level 3) Mutual funds - fixed income $ 8.0 $ — $ 7.7 $ — Interest rate swap agreement 10.0 — 15.0 — Total $ 18.0 $ — $ 22.7 $ — The table below presents a reconciliation for liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended (in millions). Contingent Consideration March 2, 2019 March 3, 2018 Beginning balance $ 0.5 $ 0.5 Net realized losses (gains) — — Payments (0.1 ) (0.1 ) Ending balance $ 0.4 $ 0.4 The contingent consideration liabilities represent future payment obligations that relate to business and product line acquisitions. These payments are based on the future performance of the acquired businesses or product line. The contingent consideration liabilities are valued using estimates based on discount rates that reflect the risk involved and the projected sales and earnings of the acquired businesses. The estimates are updated and the liabilities are adjusted to fair value on a quarterly basis. The following is a summary of the carrying and market values of the Company's fixed income mutual funds and equity mutual funds as of the respective dates: March 2, 2019 June 2, 2018 (In millions) Cost Unrealized Gain/(Loss) Market Value Cost Unrealized Market Mutual funds - fixed income $ 8.0 $ — $ 8.0 $ 7.8 $ (0.1 ) $ 7.7 Mutual funds - equity 0.9 — 0.9 0.7 0.2 0.9 Total $ 8.9 $ — $ 8.9 $ 8.5 $ 0.1 $ 8.6 The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in the Condensed Consolidated Statements of Comprehensive Income within "Other, net". The Company reviews its investment portfolio for any unrealized losses that would be deemed other-than-temporary and requires the recognition of an impairment loss in earnings. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than its cost, the Company's intent to hold the investment, and whether it is more likely than not that the Company will be required to sell the investment before recovery of the cost basis. The Company also considers the type of security, related industry and sector performance, and published investment ratings. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. If conditions within individual markets, industry segments, or macro-economic environments deteriorate, the Company could incur future impairments. The Company views its equity and fixed income mutual funds as available for use in its current operations. Accordingly, the investments are recorded within Current Assets within the Condensed Consolidated Balance Sheets. On June 3, 2018, as a result of the adoption of ASU 2016-01 - Financial Instruments , the Company reclassified net gains on mutual fund equity securities, that were formerly classified as available for sale securities before the adoption of the new standard, from Accumulated other comprehensive loss to Retained earnings. The impact of adoption was not material to the Company's financial statements. Derivative Instruments and Hedging Activities Foreign Currency Forward Contracts The Company transacts business in various foreign currencies and has established a program that primarily utilizes foreign currency forward contracts to reduce the risks associated with the effects of certain foreign currency exposures. Under this program, the Company's strategy is to have increases or decreases in our foreign currency exposures offset by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses. Foreign currency exposures typically arise from net liability or asset exposures in non-functional currencies on the balance sheets of our foreign subsidiaries. Foreign currency forward contracts generally settle within 30 days and are not used for trading purposes. These forward contracts are not designated as hedging instruments. Accordingly, we record the fair value of these contracts as of the end of the reporting period in the Consolidated Balance Sheets with changes in fair value recorded within the Consolidated Statements of Comprehensive Income. The balance sheet classification for the fair values of these forward contracts is to Other current assets for unrealized gains and to Other accrued liabilities for unrealized losses. The Consolidated Statements of Comprehensive Income classification for the fair values of these forward contracts is to Other expenses (income): Other, net, for both realized and unrealized gains and losses. Interest Rate Swaps The Company enters into interest rate swap agreements to manage its exposure to interest rate changes and its overall cost of borrowing. The Company's interest rate swap agreements were entered into to exchange variable rate interest payments for fixed rate payments over the life of the agreement without the exchange of the underlying notional amounts. The notional amount of the interest rate swap agreements is used to measure interest to be paid or received and does not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. The interest rate swaps were designated cash flow hedges at inception and remain an effective accounting hedge as of March 2, 2019 . Since a designated derivative meets hedge accounting criteria, the fair value of the hedge is recorded in the Consolidated Statement of Stockholders’ Equity as a component of Accumulated other comprehensive loss, net of tax. The ineffective portion of the change in fair value of the derivatives is immediately recognized in earnings. The interest rate swap agreements are assessed for hedge effectiveness on a quarterly basis. In September 2016, the Company entered into an interest rate swap agreement. The interest rate swap is for an aggregate notional amount of $150.0 million with a forward start date of January 3, 2018 and a termination date of January 3, 2028. As a result of the transaction, the Company effectively converted indebtedness anticipated to be borrowed on the Company’s revolving line of credit up to the notional amount from a LIBOR-based floating interest rate plus applicable margin to a 1.949% fixed interest rate plus applicable margin under the agreement as of the forward start date. On June 12, 2017, the Company entered into an interest rate swap agreement. The interest rate swap is for an aggregate notional amount of $75.0 million with a forward start date of January 3, 2018 and a termination date of January 3, 2028. As a result of the transaction, the Company effectively converted the Company’s revolving line of credit up to the notional amount from a LIBOR-based floating interest rate plus applicable margin to a 2.387% fixed interest rate plus applicable margin under the agreement as of the forward start date. As of March 2, 2019 , the fair value of the Company’s two outstanding interest rate swap agreements, which are designated cash flow hedges, was an asset of $10.0 million . The asset fair value was recorded within Other noncurrent assets within the Condensed Consolidated Balance Sheets. Recorded within Other comprehensive loss, net of tax, for the effective portion of the Company's designated cash flow hedges was a net unrealized loss of $4.4 million and a net unrealized gain of $5.9 million for the three months ended March 2, 2019 and March 3, 2018 , respectively. Recorded within Other comprehensive loss, net of tax, for the effective portion of the Company's designated cash flow hedges was a net unrealized loss of $3.9 million and a net unrealized gain of $6.9 million for the nine months ended March 2, 2019 and March 3, 2018 , respectively. There were no gains or losses recognized against earnings for hedge ineffectiveness for the three and nine month periods ended March 2, 2019 and March 3, 2018 , respectively. The losses reclassified from Accumulated other comprehensive loss into earnings were $0.2 million and zero for three month periods ended March 2, 2019 and March 3, 2018 , respectively. The losses reclassified from Accumulated other comprehensive loss into earnings were $0.3 million and zero for the nine month periods ended March 2, 2019 and March 3, 2018 . The net of tax amount expected to be reclassified out of Accumulated other comprehensive loss into earnings during the next twelve months is a $2.0 million |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies And Contingencies | Commitments and Contingencies Product Warranties The Company provides coverage to the end-user for parts and labor on products sold under its warranty policy and for other product-related matters. The standard length of warranty is 12 years for the majority of products sold; however, this varies depending on the product classification. The Company does not sell or otherwise issue warranties or warranty extensions as stand-alone products. Reserves have been established for the various costs associated with the Company's warranty program and are included in the Condensed Consolidated Balance Sheets under “Accrued warranty.” General warranty reserves are based on historical claims experience and other currently available information. These reserves are adjusted once an issue is identified and the actual cost of correction becomes known or can be estimated. The Company provides an assurance-type warranty that ensures that products will function as intended. As such, the Company's estimated warranty obligation is accounted for as a liability. Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Accrual Balance — beginning $ 52.4 $ 53.3 $ 51.5 $ 47.7 Accrual for product-related matters 4.6 4.2 15.3 19.2 Settlements and adjustments (4.5 ) (4.6 ) (14.3 ) (14.0 ) Accrual Balance — ending $ 52.5 $ 52.9 $ 52.5 $ 52.9 Guarantees The Company is periodically required to provide performance bonds to do business with certain customers. These arrangements are common in the industry and generally have terms ranging between one and three years. The bonds are required to provide assurance to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. The bonds are provided by various bonding agencies. However, the Company is ultimately liable for claims that may occur against them. As of March 2, 2019 , the Company had a maximum financial exposure related to performance bonds totaling approximately $6.4 million . The Company has no history of claims, nor is it aware of circumstances that would require it to pay, under any of these arrangements. The Company also believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the Company's financial statements. Accordingly, no liability has been recorded in respect to these bonds as of either March 2, 2019 or June 2, 2018 . The Company has entered into standby letter of credit arrangements for purposes of protecting various insurance companies and lessors against default on insurance premium and lease payments. As of March 2, 2019 , the Company had a maximum financial exposure from these standby letters of credit totaling approximately $10.0 million , all of which is considered usage against the Company's revolving line of credit. The Company has no history of claims, nor is it aware of circumstances that would require it to perform under any of these arrangements, and believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the Company's financial statements. Accordingly, no liability has been recorded in respect of these arrangements as of March 2, 2019 and June 2, 2018 . Contingencies The Company is also involved in legal proceedings and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such proceedings and litigation currently pending will not materially affect the Company's consolidated financial statements. The Company is a party to options, that if exercised, would require the Company to purchase an additional 33% |
Debt
Debt | 9 Months Ended |
Mar. 02, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt as of March 2, 2019 and June 2, 2018 consisted of the following obligations: (In millions) March 2, 2019 June 2, 2018 Debt securities, due March 1, 2021 $ 50.0 $ 50.0 Syndicated revolving line of credit, due September 2021 225.0 225.0 Construction-Type Lease 6.9 7.0 Supplier financing program 3.5 3.8 Total debt $ 285.4 $ 285.8 Less: Current debt (3.5 ) (10.8 ) Long-term debt $ 281.9 $ 275.0 The Company's syndicated revolving line of credit provides the Company with up to $400 million in revolving variable interest borrowing capacity and includes an "accordion feature" allowing the Company to increase, at its option and subject to the approval of the participating banks, the aggregate borrowing capacity of the facility by up to $200 million . The facility will expire in September 2021 and outstanding borrowings bear interest at rates based on the prime rate, federal funds rate, LIBOR or negotiated rates as outlined in the agreement. Interest is payable periodically throughout the period if borrowings are outstanding. As of March 2, 2019 , the total debt outstanding related to borrowings under the syndicated revolving line of credit was $225.0 million . Available borrowings against this facility were $165.0 million due to $10.0 million related to outstanding letters of credit. As of June 2, 2018 , total debt outstanding related to borrowings under the syndicated revolving line of credit was $225.0 million and available borrowings were $166.8 million due to $8.2 million of outstanding letters of credit. Supplier Financing Program The Company has an agreement wit h a third-party financial institution that allows certain participating suppliers the ability to finance payment obligations from the Company. Under this program, participating suppliers may finance payment obligations of the Company, prior to their scheduled due dates, at a discounted price to the third-party financial institution. The Company has lengthened the payment terms for certain suppliers that have chosen to participate in the program. As a result, certain amounts due to suppliers have payment terms that are longer than standard industry practice and as such, these amounts have been excluded from the caption “Accounts payable” in the Condensed Consolidated Balance Sheets as the amounts have been accounted for by the Company as a current debt obligation. Accordingly, $3.5 million and $3.8 million have been recorded within the caption “Other accrued liabilities” for the periods ended March 2, 2019 and June 2, 2018 , respectively. Construction-Type Lease During fiscal 2015, the Company entered into a lease agreement for the occupancy of a new studio facility in Palo Alto, California which runs through fiscal 2026. In fiscal 2017, the Company became the deemed owner of the leased building for accounting purposes as a result of the Company's involvement during the construction phase of the project. The lease is therefore accounted for as a financing transaction and the building and related financing liability were initially recorded at fair value in the Consolidated Balance Sheets within both Construction in progress and Other accrued liabilities. The fair value of the building and financing liability was determined through a blend of an income approach, comparable property sales approach and a replacement cost approach. During the first quarter of fiscal 2019, the construction was substantially completed, and the property was placed in service. As a result, the Company began depreciating the assets over their estimated useful lives. The Company also reclassified the related financing liability to Long-term debt. Additionally, the Company began allocating its monthly lease payments between land rent, which is recorded as an operating lease expense, interest expense and the reduction of the related lease obligation. The imputed interest rate on the financing liability is 2.9% , the Company's incremental borrowing rate. The carrying value of the building and the related financing liability were $6.8 million and $6.9 million at March 2, 2019 , respectively. The carrying value of the building and the related financing liability were both $7.0 million at June 2, 2018 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Mar. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides an analysis of the changes in accumulated other comprehensive loss for the nine months ended March 2, 2019 and March 3, 2018 : (In millions) Cumulative Translation Adjustments Pension and Other Post-retirement Benefit Plans Unrealized Gains on Available-for-sale Securities Interest Rate Swap Agreement Accumulated Other Comprehensive Loss Balance at June 3, 2017 $ (36.8 ) $ (47.6 ) $ 0.1 $ 2.1 $ (82.2 ) Other comprehensive income before reclassifications 6.3 — — 6.9 13.2 Reclassification from accumulated other comprehensive loss - Other, net — 3.2 — — 3.2 Tax benefit — (0.6 ) — — (0.6 ) Net reclassifications — 2.6 — — 2.6 Net current period other comprehensive income 6.3 2.6 — 6.9 15.8 Balance at March 3, 2018 $ (30.5 ) (45.0 ) $ 0.1 $ 9.0 $ (66.4 ) Balance at June 2, 2018 $ (34.1 ) $ (37.2 ) $ 0.1 $ 9.9 $ (61.3 ) Cumulative effect of accounting change — — (0.1 ) 1.5 1.4 Other comprehensive loss before reclassifications (4.4 ) — — (4.2 ) (8.6 ) Reclassification from accumulated other comprehensive loss - Other, net — 2.0 — 0.3 2.3 Tax benefit — (0.3 ) — — (0.3 ) Net reclassifications — 1.7 — 0.3 2.0 Net current period other comprehensive income (4.4 ) 1.7 — (3.9 ) (6.6 ) Balance at March 2, 2019 $ (38.5 ) $ (35.5 ) $ — $ 7.5 $ (66.5 ) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 9 Months Ended |
Mar. 02, 2019 | |
Redeemable Noncontrolling Interest, Equity, Fair Value [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Redeemable noncontrolling interests are reported on the Consolidated Balance Sheets in mezzanine equity in “Redeemable noncontrolling interests.” The Company recognizes changes to the redemption value of redeemable noncontrolling interests as they occur and adjusts the carrying value to equal the redemption value at the end of each reporting period. The redemption amounts have been estimated based on the fair value of the subsidiary, determined based on a weighting of the discounted cash flow and market methods. This represents a level 3 fair value measurement. Changes in the Company’s redeemable noncontrolling interests for the nine months ended March 2, 2019 and March 3, 2018 are as follows: (In millions) March 2, 2019 March 3, 2018 Beginning Balance $ 30.5 $ 24.6 Purchase of redeemable noncontrolling interests (10.1 ) (1.0 ) Net income attributable to redeemable noncontrolling interests 0.1 0.2 Exercised options 0.2 — Redemption value adjustment — 0.5 Ending Balance $ 20.7 $ 24.3 |
Operating Segments
Operating Segments | 9 Months Ended |
Mar. 02, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Operating Segments | Operating Segments The Company's reportable segments consist of North American Furniture Solutions, ELA Furniture Solutions, Specialty and Consumer. The North American Furniture Solutions segment includes the operations associated with the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, throughout the United States and Canada. The business associated with the Company's owned contract furniture dealers is also included in the North American Furniture Solutions segment. The ELA Furniture Solutions segment includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the EMEA, Latin America and Asia-Pacific geographic regions. The Specialty segment includes the operations associated with the design, manufacture, and sale of high-craft furniture products and textiles including Geiger wood products, Maharam textiles, Nemschoff and Herman Miller Collection products. The Consumer segment includes operations associated with the sale of modern design furnishings and accessories to third-party retail distributors, through contract channels, as well as direct to consumer sales through eCommerce and Design Within Reach and HAY retail studios and outlets. The Company also reports a “Corporate” category consisting primarily of unallocated expenses related to general corporate functions, including, but not limited to, certain legal, executive, corporate finance, information technology, administrative and acquisition-related costs. Management regularly reviews corporate costs and believes disclosing such information provides more visibility and transparency regarding how the chief operating decision maker reviews results of the Company. The accounting policies of the reportable operating segments are the same as those of the Company. Subsequent to the end of the third quarter of fiscal 2019, on March 12, 2019, the Company announced certain changes to its business leadership and internal reporting structure that may impact its reportable segments starting in the fourth quarter of fiscal 2019 . The Company is in the process of evaluating the impact of these changes on its reportable operating segments and goodwill reporting units. The following is a summary of certain key financial measures for the respective fiscal periods indicated: Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Net Sales: North American Furniture Solutions $ 320.9 $ 316.4 $ 1,017.8 $ 975.3 ELA Furniture Solutions 126.0 102.6 359.9 309.0 Specialty 76.1 72.6 235.0 222.2 Consumer 96.0 86.8 283.5 256.7 Total $ 619.0 $ 578.4 $ 1,896.2 $ 1,763.2 Operating Earnings (Loss): North American Furniture Solutions $ 37.4 $ 37.8 $ 128.7 $ 131.6 ELA Furniture Solutions 16.3 7.6 40.7 27.3 Specialty 2.8 2.0 10.8 5.7 Consumer 2.3 4.2 6.3 5.5 Corporate (11.0 ) (12.9 ) (39.6 ) (31.5 ) Total $ 47.8 $ 38.7 $ 146.9 $ 138.6 (In millions) March 2, 2019 June 2, 2018 Total Assets: North American Furniture Solutions $ 512.2 $ 488.7 ELA Furniture Solutions 372.3 283.4 Specialty 201.6 188.7 Consumer 310.8 291.2 Corporate 132.3 227.5 Total $ 1,529.2 $ 1,479.5 |
Restructuring Activities Restru
Restructuring Activities Restructuring Activities | 9 Months Ended |
Mar. 02, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and Impairment Expenses Fiscal 2019 Restructuring Expenses ELA segment During the fourth quarter of fiscal 2018, the Company announced a facilities consolidation plan related to its ELA segment. This impacted certain office and manufacturing facilities in the United Kingdom and China. It is currently contemplated that this plan will generate approximately $3 million in annual cost reductions as part of the Company's three-year cost savings initiatives. In the third quarter of fiscal 2019, the Company recognized restructuring expenses of $0.3 million related to the consolidation of certain facilities in China and the United Kingdom that were announced in the fourth quarter of fiscal 2018. In the first nine months of fiscal 2019, the Company recognized restructuring and impairment expenses of $1.7 million related to the facilities consolidation plan, comprised primarily of $0.8 million related to an asset impairment recorded against the office building in the United Kingdom that is being vacated and $0.7 million from the consolidation of the Company's manufacturing facilities in China. As the United Kingdom office building and related assets meet the criteria to be designated as assets held for sale, the carrying value of these assets have been classified as current assets and included within "Prepaid expenses and other" in the Condensed Consolidated Balance Sheets for the period ended March 2, 2019 . The carrying amount of the assets held for sale was approximately $5.0 million as of March 2, 2019 . To date, the Company has recognized $5.6 million of restructuring costs related to the ELA facilities consolidation plan. The Company expects the ELA facilities consolidations to be completed by the first quarter of fiscal 2020. It is currently contemplated that this plan will incur an additional estimated $2 million of future restructuring charges. The following table provides an analysis of the changes in ELA segment restructuring costs reserve for the nine months ended March 2, 2019 : (In millions) Severance and Employee-Related Impairment of Property and Equipment Exit or Disposal Activities Total Beginning Balance $ — $ — $ — $ — Restructuring Costs 0.2 0.8 0.7 1.7 Amounts Paid (0.1 ) — (0.7 ) (0.8 ) Charges Against Assets — (0.8 ) — (0.8 ) Ending Balance $ 0.1 $ — $ — $ 0.1 Fiscal 2018 Restructuring Expenses North America Contract segment During the first quarter of fiscal 2018, the company announced restructuring actions involving targeted workforce reductions primarily within the North American segment. These actions related to the company's cost savings initiatives and resulted in the recognition of restructuring expenses of $1.4 million in the first quarter of fiscal 2018. The restructuring actions were deemed to be complete at December 2, 2017 and final payments were made over the next two quarters. During the second quarter of fiscal 2018, the company announced further restructuring actions involving targeted workforce reductions primarily within the North American segment. These actions related to the company's previously announced cost savings initiatives and resulted in the recognition of restructuring expenses of $0.5 million in the second quarter of fiscal 2018. The restructuring actions were deemed to be complete at December 2, 2017 and final payments were made over the next two quarters. The following table provides an analysis of the changes in North America Contract segment restructuring costs reserve for the nine months ended March 3, 2018 : (In millions) Beginning Balance $ 2.4 Restructuring Costs 1.9 Amounts Paid (4.0 ) Ending Balance $ 0.3 |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 9 Months Ended |
Mar. 02, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Variable Interest Entities The Company has long-term notes receivable with certain of its third-party owned dealers that are deemed to be variable interests in variable interest entities. The carrying value of these long-term notes receivable was $3.6 million and $2.5 million as of March 2, 2019 and June 2, 2018 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 9 Months Ended |
Mar. 03, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Mar. 02, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
New Accounting Pronouncements, Policy | Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Revenue from Contracts with Customers The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The standard allows for two adoption methods, a full retrospective or modified retrospective approach. June 3, 2018 The Company adopted the standard effective June 3, 2018 using the modified retrospective method. Refer to Note 3 to the financial statements for further information regarding the adoption of the standard. Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The standard provides guidance for the measurement, presentation and disclosure of financial assets and liabilities. The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any change in fair value in net income. The standard does not permit early adoption and at adoption a cumulative-effect adjustment to beginning retained earnings should be recorded. June 3, 2018 The Company adopted the standard effective June 3, 2018 using the modified retrospective method. As a result, the Company reclassified $0.1 million of net gains on mutual fund equity securities, that were formerly classified as available for sale securities before the adoption of the new standard, from Accumulated other comprehensive loss to Retained earnings. The impact of adoption also resulted in certain disclosure changes. Refer to Note 11 of the financial statements for further information. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Early adoption is permitted. September 2, 2018 The Company early adopted the standard prospectively effective September 2, 2018. The impacts resulting from adoption did not have an impact on the Company’s Financial Statements. Recently Adopted Accounting Standards (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update allows for the reclassification to retained earnings of the tax effects stranded in Accumulated Other Comprehensive Income resulting from The Tax Cuts and Jobs Act. Early adoption is permitted. September 2, 2018 The Company early adopted the standard effective September 2, 2018 and reclassified $1.5 million from Accumulated other comprehensive loss to Retained earnings related to the tax impact of the Company’s interest rate swap agreements. Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard changes the rules related to the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. Under the new guidance, entities must present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs related to services rendered during the period. Other components of net periodic benefit cost will be presented separately from the line items that include the service cost. Early adoption is permitted. June 3, 2018 The Company retrospectively adopted the standard effective June 3, 2018. Prior to adoption, the Company recorded net periodic benefit costs related to its defined benefit pension and post-retirement medical plans within Selling, general and administrative expenses. As a result of adoption, these costs are recorded within Other, net. The Company retrospectively reclassified these costs in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended March 3, 2018 from Selling, general and administrative to Other, net. Refer to Note 7 of the financial statements for further information. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities This update amends the hedge accounting recognition and presentation with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting. The update expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments and permits the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. June 2, 2019 The Company is currently evaluating the impact of adopting this guidance. Leases Under the updated standard a lessee's rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. The standard must be adopted under a modified retrospective approach and early adoption is permitted. June 2, 2019 The standard is expected to have a significant impact on our Consolidated Financial Statements. The Company does not expect the Statement of Comprehensive Income to be significantly impacted. However, the impact to the balance sheet of recording right of use assets and lease liabilities for the Company’s operating leases, as well as the necessary financial statement disclosures, is expected to be significant. The Company has assembled a project team and is working towards implementation of the lease accounting standard. The Company has substantially completed its identification of the global lease population and the data migration to a lease integration tool that will support the accounting and disclosure requirements under the standard. The Company is currently completing its review and testing of the data entered into the tool and is developing accounting policies and internal controls over the post-implementation lease accounting activities. Recently Issued Accounting Standards Not Yet Adopted (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters 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 The Company is currently evaluating the impact of adopting this guidance. 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, and an entity is also permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. May 31, 2020 The Company is currently evaluating the impact of adopting this guidance. 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 postretirement plans. Early adoption is permitted. May 30, 2021 The Company is currently evaluating the impact of adopting this guidance. ASU 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on June 3, 2018. As the Company's pension and post retirement medical plans are frozen and not open to new plan participants, these plans no longer have a service component in net periodic benefit cost. Prior to adoption, the Company recorded net periodic benefit costs related to its defined benefit pension and post-retirement medical plans within Selling, general and administrative expenses. As a result of adoption, these costs are recorded within Other, net. The Company retrospectively reclassified $0.4 million and $1.2 million |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue from Contracts with Customers (Policies) | 9 Months Ended |
Mar. 02, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer Policy | Significant Financing Component - the Company has not adjusted the amount of consideration to be received for any significant financing components as the Company’s contracts have a duration of one year or less.The Company recognizes revenue when performance obligations, based on the terms of customer contracts, are satisfied. This happens when control of goods and services based on the contract have been conveyed to the customer. Revenue for the sale of products is typically recognized at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. Revenue for services, including the installation of products by the Company's owned dealers, is recognized over time as the services are provided. The method of revenue recognition may vary, depending on the type of contract with the customer, as noted in the section Disaggregated Revenue further below. The Company's contracts with customers include master agreements and certain other forms of contracts, which do not reach the level of a performance obligation until a purchase order is received from a customer. At the point in time that a purchase order under a contract is received by the Company, the collective group of documents represent an enforceable contract between the Company and the customer. While certain customer contracts may have a duration of greater than a year, all purchase orders are less than a year in duration. As of March 2, 2019 , all unfulfilled performance obligations are expected to be fulfilled in the next twelve months. Variable consideration exists within certain contracts that the Company has with customers. When variable consideration is present in a contract with a customer, the Company estimates the amount that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. These estimates are primarily related to rebate programs which involve estimating future sales amounts and rebate percentages to use in the determination of transaction price. |
Shipping and Handling Activities Policy | Shipping and Handling Activities - the Company accounts for shipping and handling activities as fulfillment activities and these costs are accrued within Cost of sales at the same time revenue is recognized. |
Sales Tax Policy | Sales Taxes - |
Incremental Costs of Obtaining a Contract Policy | Incremental Costs of Obtaining a Contract - the Company has recognized incremental costs to obtain a contract as an expense when incurred as the amortization period is less than one year. |
Single Performance Obligation Revenue Policy | 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 Consumer reportable segment, as well as customer purchase orders for the Maharam subsidiary within the Specialty reportable 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. |
Multiple Performance Obligations Revenue Policy | – 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’s Condensed Consolidated Statements of Comprehensive Income. In certain instances, entities owned by the Company, rather than independent third-party dealers, perform installation and other services. In these cases, Service revenue is generated by the Company’s entities that provide installation services, which include owned dealers, and is recognized by the Company over time as the services are provided. For c |
Other Revenue Policy | 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’s sales channel. |
Inventories (Policies)
Inventories (Policies) | 9 Months Ended |
Mar. 02, 2019 | |
Inventories [Abstract] | |
Inventory, Policy | Inventories are valued at the lower of cost or market and include material, labor, and overhead. The inventories at our West Michigan manufacturing operations are valued using the last-in, first-out (LIFO) method, whereas inventories of certain other operations are valued using the first-in, first-out (FIFO) method |
Employee Benefit Plans New Acco
Employee Benefit Plans New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments (Policies) | 9 Months Ended |
Mar. 02, 2019 | |
Accounting Standard Update 2017-07 [Abstract] | |
New Accounting Pronouncements, Policy | Recently Adopted Accounting Standards Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Revenue from Contracts with Customers The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The standard allows for two adoption methods, a full retrospective or modified retrospective approach. June 3, 2018 The Company adopted the standard effective June 3, 2018 using the modified retrospective method. Refer to Note 3 to the financial statements for further information regarding the adoption of the standard. Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The standard provides guidance for the measurement, presentation and disclosure of financial assets and liabilities. The standard requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any change in fair value in net income. The standard does not permit early adoption and at adoption a cumulative-effect adjustment to beginning retained earnings should be recorded. June 3, 2018 The Company adopted the standard effective June 3, 2018 using the modified retrospective method. As a result, the Company reclassified $0.1 million of net gains on mutual fund equity securities, that were formerly classified as available for sale securities before the adoption of the new standard, from Accumulated other comprehensive loss to Retained earnings. The impact of adoption also resulted in certain disclosure changes. Refer to Note 11 of the financial statements for further information. Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Early adoption is permitted. September 2, 2018 The Company early adopted the standard prospectively effective September 2, 2018. The impacts resulting from adoption did not have an impact on the Company’s Financial Statements. Recently Adopted Accounting Standards (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update allows for the reclassification to retained earnings of the tax effects stranded in Accumulated Other Comprehensive Income resulting from The Tax Cuts and Jobs Act. Early adoption is permitted. September 2, 2018 The Company early adopted the standard effective September 2, 2018 and reclassified $1.5 million from Accumulated other comprehensive loss to Retained earnings related to the tax impact of the Company’s interest rate swap agreements. Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard changes the rules related to the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. Under the new guidance, entities must present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs related to services rendered during the period. Other components of net periodic benefit cost will be presented separately from the line items that include the service cost. Early adoption is permitted. June 3, 2018 The Company retrospectively adopted the standard effective June 3, 2018. Prior to adoption, the Company recorded net periodic benefit costs related to its defined benefit pension and post-retirement medical plans within Selling, general and administrative expenses. As a result of adoption, these costs are recorded within Other, net. The Company retrospectively reclassified these costs in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended March 3, 2018 from Selling, general and administrative to Other, net. Refer to Note 7 of the financial statements for further information. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities This update amends the hedge accounting recognition and presentation with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting. The update expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments and permits the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. June 2, 2019 The Company is currently evaluating the impact of adopting this guidance. Leases Under the updated standard a lessee's rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. The standard must be adopted under a modified retrospective approach and early adoption is permitted. June 2, 2019 The standard is expected to have a significant impact on our Consolidated Financial Statements. The Company does not expect the Statement of Comprehensive Income to be significantly impacted. However, the impact to the balance sheet of recording right of use assets and lease liabilities for the Company’s operating leases, as well as the necessary financial statement disclosures, is expected to be significant. The Company has assembled a project team and is working towards implementation of the lease accounting standard. The Company has substantially completed its identification of the global lease population and the data migration to a lease integration tool that will support the accounting and disclosure requirements under the standard. The Company is currently completing its review and testing of the data entered into the tool and is developing accounting policies and internal controls over the post-implementation lease accounting activities. Recently Issued Accounting Standards Not Yet Adopted (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters 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 The Company is currently evaluating the impact of adopting this guidance. 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, and an entity is also permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. May 31, 2020 The Company is currently evaluating the impact of adopting this guidance. 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 postretirement plans. Early adoption is permitted. May 30, 2021 The Company is currently evaluating the impact of adopting this guidance. ASU 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on June 3, 2018. As the Company's pension and post retirement medical plans are frozen and not open to new plan participants, these plans no longer have a service component in net periodic benefit cost. Prior to adoption, the Company recorded net periodic benefit costs related to its defined benefit pension and post-retirement medical plans within Selling, general and administrative expenses. As a result of adoption, these costs are recorded within Other, net. The Company retrospectively reclassified $0.4 million and $1.2 million |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 9 Months Ended |
Mar. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in the Condensed Consolidated Statements of Comprehensive Income within "Other, net". |
Marketable Securities, Policy [Policy Text Block] | The Company reviews its investment portfolio for any unrealized losses that would be deemed other-than-temporary and requires the recognition of an impairment loss in earnings. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than its cost, the Company's intent to hold the investment, and whether it is more likely than not that the Company will be required to sell the investment before recovery of the cost basis. The Company also considers the type of security, related industry and sector performance, and published investment ratings. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. If conditions within individual markets, industry segments, or macro-economic environments deteriorate, the Company could incur future impairments. The Company views its equity and fixed income mutual funds as available for use in its current operations. Accordingly, the investments are recorded within Current Assets within the Condensed Consolidated Balance Sheets. |
Derivatives, Methods of Accounting, Hedging Derivatives [Policy Text Block] | Foreign Currency Forward Contracts The Company transacts business in various foreign currencies and has established a program that primarily utilizes foreign currency forward contracts to reduce the risks associated with the effects of certain foreign currency exposures. Under this program, the Company's strategy is to have increases or decreases in our foreign currency exposures offset by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses. Foreign currency exposures typically arise from net liability or asset exposures in non-functional currencies on the balance sheets of our foreign subsidiaries. Foreign currency forward contracts generally settle within 30 days and are not used for trading purposes. These forward contracts are not designated as hedging instruments. Accordingly, we record the fair value of these contracts as of the end of the reporting period in the Consolidated Balance Sheets with changes in fair value recorded within the Consolidated Statements of Comprehensive Income. The balance sheet classification for the fair values of these forward contracts is to Other current assets for unrealized gains and to Other accrued liabilities for unrealized losses. The Consolidated Statements of Comprehensive Income classification for the fair values of these forward contracts is to Other expenses (income): Other, net, for both realized and unrealized gains and losses. Interest Rate Swaps The Company enters into interest rate swap agreements to manage its exposure to interest rate changes and its overall cost of borrowing. The Company's interest rate swap agreements were entered into to exchange variable rate interest payments for fixed rate payments over the life of the agreement without the exchange of the underlying notional amounts. The notional amount of the interest rate swap agreements is used to measure interest to be paid or received and does not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. The interest rate swaps were designated cash flow hedges at inception and remain an effective accounting hedge as of March 2, 2019 . Since a designated derivative meets hedge accounting criteria, the fair value of the hedge is recorded in the Consolidated Statement of Stockholders’ Equity as a component of Accumulated other comprehensive loss, net of tax. The ineffective portion of the change in fair value of the derivatives is immediately recognized in earnings. The interest rate swap agreements are assessed for hedge effectiveness on a quarterly basis. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Cumulative Impact, Revenue | The cumulative impact to our Condensed Consolidated Balance Sheet as of June 3, 2018 was as follows: Balance at Adjustments due Balance at (In millions) June 2, 2018 to ASC 606 June 3, 2018 Balance Sheet Assets: Unbilled accounts receivable $ 1.9 $ 11.1 $ 13.0 Inventories, net 162.4 (7.1 ) 155.3 Liabilities: Accrued compensation and benefits 86.3 0.2 86.5 Other accrued liabilities 77.0 1.9 78.9 Equity: Retained earnings 598.3 1.9 600.2 |
Schedule of Legacy GAAP Reconciliation | In accordance with the modified retrospective adoption rules per ASC 606, the Company has disclosed in the tables below the differences in our financial statements due to the adoption of the standard. The “As reported” column represents the financial statement values recorded in accordance with ASC 606, while the “Legacy GAAP” column represents what the financial statement values would have been under ASC 605, had the new standard not been adopted. Three Months Ended March 2, 2019 (In millions) As reported Performance Obligation Change Gross vs. Net Change Legacy GAAP Statement of Comprehensive Income Net sales $ 619.0 $ 7.4 $ (9.6 ) $ 616.8 Cost of sales 398.0 4.1 (9.6 ) 392.5 Gross margin 221.0 3.3 224.3 Total operating expenses 173.2 0.1 173.3 Operating earnings 47.8 3.2 51.0 Income tax expense 7.3 0.5 7.8 Net earnings 39.3 2.7 42.0 Nine Months Ended March 2, 2019 (In millions) As reported Performance Obligation Change Gross vs. Net Change Legacy GAAP Statement of Comprehensive Income Net sales $ 1,896.2 $ (10.8 ) $ (28.1 ) $ 1,857.3 Cost of sales 1,214.5 (6.0 ) (28.1 ) 1,180.4 Gross margin 681.7 (4.8 ) 676.9 Total operating expenses 534.8 — 534.8 Operating earnings 146.9 (4.8 ) 142.1 Income tax expense 27.3 (1.1 ) 26.2 Net earnings 114.6 (3.7 ) 110.9 As of March 2, 2019 (In millions) As reported Performance Obligation Change Gross vs. Net Change Legacy GAAP Balance Sheet Assets: Unbilled accounts receivable $ 25.5 $ (21.9 ) $ 3.6 Inventories, net 191.9 12.8 204.7 Liabilities: Accrued compensation and benefits 73.9 (0.3 ) 73.6 Other accrued liabilities 80.4 (3.1 ) 77.3 Equity: Retained earnings 678.3 (5.6 ) 672.7 |
Disaggregation of Revenue | Revenue disaggregated by contract type has been provided in the table below: Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 2, 2019 Net Sales: Single performance obligation Product revenue $ 524.5 $ 1,599.0 Multiple performance obligations Product revenue 89.0 281.7 Service revenue 2.8 8.7 Other 2.7 6.8 Total $ 619.0 $ 1,896.2 Revenue disaggregated by product type and reportable segment has been provided in the table below: Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 2, 2019 North American Furniture Solutions: Systems $ 127.5 $ 415.7 Seating 93.2 289.8 Freestanding and storage 73.5 226.8 Other 26.7 85.5 Total North American Furniture Solutions $ 320.9 $ 1,017.8 ELA Furniture Solutions: Systems $ 26.8 $ 78.0 Seating 71.8 202.7 Freestanding and storage 14.5 38.7 Other 12.9 40.5 Total ELA Furniture Solutions $ 126.0 $ 359.9 Specialty: Systems $ 1.2 $ 4.5 Seating 29.5 85.4 Freestanding and storage 17.9 55.5 Textiles 26.5 84.8 Other 1.0 4.8 Total Specialty $ 76.1 $ 235.0 Consumer: Seating $ 59.2 $ 171.0 Freestanding and storage 15.2 49.2 Other 21.6 63.3 Total Consumer $ 96.0 $ 283.5 Total $ 619.0 $ 1,896.2 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | (In millions) March 2, 2019 June 2, 2018 Finished goods $ 147.1 $ 124.2 Raw materials 44.8 38.2 Total $ 191.9 $ 162.4 |
Goodwill and Indefinite-lived_2
Goodwill and Indefinite-lived Intangibles (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Goodwill and Indefinite-lived Intangibles [Abstract] | |
Goodwill and Indefinite-lived Intangibles | Goodwill and other indefinite-lived intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following as of March 2, 2019 and June 2, 2018 : (In millions) Goodwill Indefinite-lived Intangible Assets Total Goodwill and Indefinite-lived Intangible Assets June 2, 2018 $ 304.1 $ 78.1 $ 382.2 Foreign currency translation adjustments (0.1 ) — (0.1 ) March 2, 2019 $ 304.0 $ 78.1 $ 382.1 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Employee Benefit Plans [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the components of net periodic benefit costs for the Company's International defined benefit pension plan for the three and nine months ended : Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Interest cost $ 0.7 $ 0.8 $ 2.0 $ 2.5 Expected return on plan assets (1.1 ) (1.7 ) (3.3 ) (5.3 ) Net amortization loss 0.7 1.3 2.0 3.9 Net periodic benefit cost $ 0.3 $ 0.4 $ 0.7 $ 1.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table reconciles the numerators and denominators used in the calculations of basic and diluted earnings per share (EPS) for the three and nine months ended: Three Months Ended Nine Months Ended March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Numerators : Numerator for both basic and diluted EPS, Net earnings attributable to Herman Miller, Inc. - in millions $ 39.2 $ 29.8 $ 114.5 $ 96.3 Denominators : Denominator for basic EPS, weighted-average common shares outstanding 58,838,958 59,691,709 59,087,899 59,753,271 Potentially dilutive shares resulting from stock plans 288,300 670,375 360,395 620,943 Denominator for diluted EPS 59,127,258 60,362,084 59,448,294 60,374,214 Antidilutive equity awards not included in weighted-average common shares - diluted 401,811 101,763 211,097 381,446 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Stock-Based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes the stock-based compensation expense and related income tax effect for the three and nine months ended : Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Stock-based compensation expense $ 2.2 $ 1.8 $ 7.2 $ 4.8 Related income tax effect 0.5 0.5 1.6 1.4 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Contingencies | The Company's recorded liability for potential interest and penalties related to uncertain tax benefits was: (In millions) March 2, 2019 June 2, 2018 Liability for interest and penalties $ 1.0 $ 1.0 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The components of the Company's unrecognized tax benefits are as follows: (In millions) Balance at June 2, 2018 $ 3.2 Increases related to current year income tax positions 0.3 Decreases related to settlements (1.1 ) Balance at March 2, 2019 $ 2.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value and fair value of the Company's long-term debt, including current maturities, is as follows for the periods indicated: (In millions) March 2, 2019 June 2, 2018 Carrying value $ 285.4 $ 285.8 Fair value $ 288.1 $ 288.6 |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth financial assets and liabilities measured at fair value through net income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of March 2, 2019 and June 2, 2018 . (In millions) March 2, 2019 June 2, 2018 Financial Assets NAV Quoted Prices with Other Observable Inputs (Level 2) Management Estimate (Level 3) NAV Quoted Prices with Management Estimate (Level 3) Cash equivalents: Money market funds $ 31.0 $ — $ — $ 121.0 $ — $ — Mutual funds - equity — 0.9 — — 0.9 — Foreign currency forward contracts — 0.7 — — 0.4 — Deferred compensation plan — 15.9 — — 15.1 — Total $ 31.0 $ 17.5 $ — $ 121.0 $ 16.4 $ — Financial Liabilities Foreign currency forward contracts $ — $ 0.3 $ — $ — $ 0.3 $ — Contingent consideration — — 0.4 — — 0.5 Total $ — $ 0.3 $ 0.4 $ — $ 0.3 $ 0.5 |
Fair Value, Assets Measured on Recurring Basis | The following table sets forth financial assets measured at fair value through other comprehensive income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of March 2, 2019 and June 2, 2018 . (In millions) March 2, 2019 June 2, 2018 Financial Assets Quoted Prices with Other Observable Inputs (Level 2) Management Estimate (Level 3) Quoted Prices with Management Estimate (Level 3) Mutual funds - fixed income $ 8.0 $ — $ 7.7 $ — Interest rate swap agreement 10.0 — 15.0 — Total $ 18.0 $ — $ 22.7 $ — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for liabilities measured at fair value using significant unobservable inputs (Level 3) for the nine months ended (in millions). Contingent Consideration March 2, 2019 March 3, 2018 Beginning balance $ 0.5 $ 0.5 Net realized losses (gains) — — Payments (0.1 ) (0.1 ) Ending balance $ 0.4 $ 0.4 |
Unrealized Gain (Loss) on Investments | The following is a summary of the carrying and market values of the Company's fixed income mutual funds and equity mutual funds as of the respective dates: March 2, 2019 June 2, 2018 (In millions) Cost Unrealized Gain/(Loss) Market Value Cost Unrealized Market Mutual funds - fixed income $ 8.0 $ — $ 8.0 $ 7.8 $ (0.1 ) $ 7.7 Mutual funds - equity 0.9 — 0.9 0.7 0.2 0.9 Total $ 8.9 $ — $ 8.9 $ 8.5 $ 0.1 $ 8.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Accrual Balance — beginning $ 52.4 $ 53.3 $ 51.5 $ 47.7 Accrual for product-related matters 4.6 4.2 15.3 19.2 Settlements and adjustments (4.5 ) (4.6 ) (14.3 ) (14.0 ) Accrual Balance — ending $ 52.5 $ 52.9 $ 52.5 $ 52.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt as of March 2, 2019 and June 2, 2018 consisted of the following obligations: (In millions) March 2, 2019 June 2, 2018 Debt securities, due March 1, 2021 $ 50.0 $ 50.0 Syndicated revolving line of credit, due September 2021 225.0 225.0 Construction-Type Lease 6.9 7.0 Supplier financing program 3.5 3.8 Total debt $ 285.4 $ 285.8 Less: Current debt (3.5 ) (10.8 ) Long-term debt $ 281.9 $ 275.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides an analysis of the changes in accumulated other comprehensive loss for the nine months ended March 2, 2019 and March 3, 2018 : (In millions) Cumulative Translation Adjustments Pension and Other Post-retirement Benefit Plans Unrealized Gains on Available-for-sale Securities Interest Rate Swap Agreement Accumulated Other Comprehensive Loss Balance at June 3, 2017 $ (36.8 ) $ (47.6 ) $ 0.1 $ 2.1 $ (82.2 ) Other comprehensive income before reclassifications 6.3 — — 6.9 13.2 Reclassification from accumulated other comprehensive loss - Other, net — 3.2 — — 3.2 Tax benefit — (0.6 ) — — (0.6 ) Net reclassifications — 2.6 — — 2.6 Net current period other comprehensive income 6.3 2.6 — 6.9 15.8 Balance at March 3, 2018 $ (30.5 ) (45.0 ) $ 0.1 $ 9.0 $ (66.4 ) Balance at June 2, 2018 $ (34.1 ) $ (37.2 ) $ 0.1 $ 9.9 $ (61.3 ) Cumulative effect of accounting change — — (0.1 ) 1.5 1.4 Other comprehensive loss before reclassifications (4.4 ) — — (4.2 ) (8.6 ) Reclassification from accumulated other comprehensive loss - Other, net — 2.0 — 0.3 2.3 Tax benefit — (0.3 ) — — (0.3 ) Net reclassifications — 1.7 — 0.3 2.0 Net current period other comprehensive income (4.4 ) 1.7 — (3.9 ) (6.6 ) Balance at March 2, 2019 $ (38.5 ) $ (35.5 ) $ — $ 7.5 $ (66.5 ) |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Mar. 02, 2019 | |
Redeemable Noncontrolling Interest, Equity, Fair Value [Abstract] | |
Redeemable Noncontrolling Interest | Changes in the Company’s redeemable noncontrolling interests for the nine months ended March 2, 2019 and March 3, 2018 are as follows: (In millions) March 2, 2019 March 3, 2018 Beginning Balance $ 30.5 $ 24.6 Purchase of redeemable noncontrolling interests (10.1 ) (1.0 ) Net income attributable to redeemable noncontrolling interests 0.1 0.2 Exercised options 0.2 — Redemption value adjustment — 0.5 Ending Balance $ 20.7 $ 24.3 |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | The following is a summary of certain key financial measures for the respective fiscal periods indicated: Three Months Ended Nine Months Ended (In millions) March 2, 2019 March 3, 2018 March 2, 2019 March 3, 2018 Net Sales: North American Furniture Solutions $ 320.9 $ 316.4 $ 1,017.8 $ 975.3 ELA Furniture Solutions 126.0 102.6 359.9 309.0 Specialty 76.1 72.6 235.0 222.2 Consumer 96.0 86.8 283.5 256.7 Total $ 619.0 $ 578.4 $ 1,896.2 $ 1,763.2 Operating Earnings (Loss): North American Furniture Solutions $ 37.4 $ 37.8 $ 128.7 $ 131.6 ELA Furniture Solutions 16.3 7.6 40.7 27.3 Specialty 2.8 2.0 10.8 5.7 Consumer 2.3 4.2 6.3 5.5 Corporate (11.0 ) (12.9 ) (39.6 ) (31.5 ) Total $ 47.8 $ 38.7 $ 146.9 $ 138.6 | (In millions) March 2, 2019 June 2, 2018 Total Assets: North American Furniture Solutions $ 512.2 $ 488.7 ELA Furniture Solutions 372.3 283.4 Specialty 201.6 188.7 Consumer 310.8 291.2 Corporate 132.3 227.5 Total $ 1,529.2 $ 1,479.5 |
Restructuring Activities Rest_2
Restructuring Activities Restructuring Activities (Tables) | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and Related Costs [Table Text Block] | The following table provides an analysis of the changes in ELA segment restructuring costs reserve for the nine months ended March 2, 2019 : (In millions) Severance and Employee-Related Impairment of Property and Equipment Exit or Disposal Activities Total Beginning Balance $ — $ — $ — $ — Restructuring Costs 0.2 0.8 0.7 1.7 Amounts Paid (0.1 ) — (0.7 ) (0.8 ) Charges Against Assets — (0.8 ) — (0.8 ) Ending Balance $ 0.1 $ — $ — $ 0.1 | The following table provides an analysis of the changes in North America Contract segment restructuring costs reserve for the nine months ended March 3, 2018 : (In millions) Beginning Balance $ 2.4 Restructuring Costs 1.9 Amounts Paid (4.0 ) Ending Balance $ 0.3 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards New Accounting Pronouncements or Change in Accounting Principle (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Sep. 03, 2018 | Sep. 02, 2018 | Jun. 03, 2018 | Sep. 03, 2017 | Jun. 04, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 1.9 | $ (0.1) | $ (0.1) | |||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ (1.5) | 2 | $ (0.1) | $ 0.2 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 1.4 | $ 1.5 | (0.1) | |||
Accounting Standard Update 2016-01 | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | 0.1 | |||||
Accounting Standard Update 2016-01 | Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 0.1 | |||||
Accounting Standard Update 2018-02 | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 1.5 | |||||
Accounting Standard Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cumulative effect of accounting change | $ 1.5 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | Sep. 02, 2018 | Jun. 03, 2018 | Sep. 03, 2017 | Jun. 04, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of accounting change | $ 1.9 | $ (0.1) | $ (0.1) | |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of accounting change | $ (1.5) | 2 | $ (0.1) | $ 0.2 |
Accounting Standards Update 2014-09 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of accounting change | $ 1.9 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Cumulative Impact Balance Sheet (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 03, 2018 | Jun. 02, 2018 |
ASSETS | |||
Unbilled accounts receivable | $ 25.5 | $ 13 | $ 1.9 |
Inventories, net | 191.9 | 155.3 | 162.4 |
Liabilities: | |||
Accrued compensation and benefits | 73.9 | 86.5 | 86.3 |
Other accrued liabilities | 80.4 | 78.9 | 77 |
Stockholders' Equity: | |||
Retained earnings | $ 678.3 | 600.2 | $ 598.3 |
Accounting Standards Update 2014-09 | |||
ASSETS | |||
Unbilled accounts receivable | 11.1 | ||
Inventories, net | (7.1) | ||
Liabilities: | |||
Accrued compensation and benefits | 0.2 | ||
Other accrued liabilities | 1.9 | ||
Stockholders' Equity: | |||
Retained earnings | $ 1.9 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Differences Due to Adoption Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Mar. 02, 2019 | Mar. 03, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Net sales | $ 619 | $ 578.4 | $ 1,896.2 | $ 1,763.2 | ||||
Cost of sales | 398 | 372.6 | 1,214.5 | 1,118.5 | ||||
Gross margin | 221 | 205.8 | 681.7 | 644.7 | ||||
Total operating expenses | 173.2 | 167.1 | 534.8 | 506.1 | ||||
Operating earnings | 47.8 | 38.7 | 146.9 | 138.6 | ||||
Income tax expense | 7.3 | 6.9 | 27.3 | 35.4 | ||||
Net earnings | 39.3 | $ 39.3 | $ 35.8 | $ 30 | $ 33.5 | $ 33 | 114.6 | $ 96.5 |
Performance Obligation Change | Accounting Standards Update 2014-09 | ||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Net sales | 7.4 | (10.8) | ||||||
Cost of sales | 4.1 | (6) | ||||||
Gross margin | 3.3 | (4.8) | ||||||
Total operating expenses | 0.1 | 0 | ||||||
Operating earnings | 3.2 | (4.8) | ||||||
Income tax expense | 0.5 | (1.1) | ||||||
Net earnings | 2.7 | (3.7) | ||||||
Gross vs. Net Change | Accounting Standards Update 2014-09 | ||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Net sales | (9.6) | (28.1) | ||||||
Cost of sales | (9.6) | (28.1) | ||||||
Legacy GAAP | ||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||
Net sales | 616.8 | 1,857.3 | ||||||
Cost of sales | 392.5 | 1,180.4 | ||||||
Gross margin | 224.3 | 676.9 | ||||||
Total operating expenses | 173.3 | 534.8 | ||||||
Operating earnings | 51 | 142.1 | ||||||
Income tax expense | 7.8 | 26.2 | ||||||
Net earnings | $ 42 | $ 110.9 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Differences Due to Adoption Balance Sheet (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 03, 2018 | Jun. 02, 2018 |
ASSETS | |||
Unbilled accounts receivable | $ 25.5 | $ 13 | $ 1.9 |
Inventories, net | 191.9 | 155.3 | 162.4 |
Liabilities: | |||
Accrued compensation and benefits | 73.9 | 86.5 | 86.3 |
Other accrued liabilities | 80.4 | 78.9 | 77 |
Stockholders' Equity: | |||
Retained earnings | 678.3 | 600.2 | $ 598.3 |
Legacy GAAP | |||
ASSETS | |||
Unbilled accounts receivable | 3.6 | ||
Inventories, net | 204.7 | ||
Liabilities: | |||
Accrued compensation and benefits | 73.6 | ||
Other accrued liabilities | 77.3 | ||
Stockholders' Equity: | |||
Retained earnings | 672.7 | ||
Accounting Standards Update 2014-09 | |||
ASSETS | |||
Unbilled accounts receivable | 11.1 | ||
Inventories, net | (7.1) | ||
Liabilities: | |||
Accrued compensation and benefits | 0.2 | ||
Other accrued liabilities | 1.9 | ||
Stockholders' Equity: | |||
Retained earnings | $ 1.9 | ||
Accounting Standards Update 2014-09 | Performance Obligation Change | |||
ASSETS | |||
Unbilled accounts receivable | (21.9) | ||
Inventories, net | 12.8 | ||
Liabilities: | |||
Accrued compensation and benefits | (0.3) | ||
Other accrued liabilities | (3.1) | ||
Stockholders' Equity: | |||
Retained earnings | $ (5.6) |
Revenue from Contracts with C_8
Revenue from Contracts with Customers Differences Due to Adoption Cash Flow (Details) - USD ($) | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net Cash Provided by Operating Activities | $ 130,600,000 | $ 110,700,000 |
Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net Cash Provided by Operating Activities | $ 0 |
Revenue from Contracts with C_9
Revenue from Contracts with Customers - Revenue Disaggregated By Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 619 | $ 578.4 | $ 1,896.2 | $ 1,763.2 |
Single performance obligation | Product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 524.5 | 1,599 | ||
Multiple performance obligations | Product revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 89 | 281.7 | ||
Multiple performance obligations | Service revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2.8 | 8.7 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2.7 | $ 6.8 |
Revenue from Contracts with _10
Revenue from Contracts with Customers - Revenue Disaggregated By Product Type And Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 619 | $ 578.4 | $ 1,896.2 | $ 1,763.2 |
North American Furniture Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 320.9 | 316.4 | 1,017.8 | 975.3 |
North American Furniture Solutions | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 127.5 | 415.7 | ||
North American Furniture Solutions | Seating | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 93.2 | 289.8 | ||
North American Furniture Solutions | Freestanding and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 73.5 | 226.8 | ||
North American Furniture Solutions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26.7 | 85.5 | ||
ELA Furniture Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 126 | 102.6 | 359.9 | 309 |
ELA Furniture Solutions | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26.8 | 78 | ||
ELA Furniture Solutions | Seating | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 71.8 | 202.7 | ||
ELA Furniture Solutions | Freestanding and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 14.5 | 38.7 | ||
ELA Furniture Solutions | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12.9 | 40.5 | ||
Specialty | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 76.1 | 72.6 | 235 | 222.2 |
Specialty | Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1.2 | 4.5 | ||
Specialty | Seating | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 29.5 | 85.4 | ||
Specialty | Freestanding and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 17.9 | 55.5 | ||
Specialty | Textiles | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26.5 | 84.8 | ||
Specialty | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1 | 4.8 | ||
Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 96 | $ 86.8 | 283.5 | $ 256.7 |
Consumer | Seating | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 59.2 | 171 | ||
Consumer | Freestanding and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 15.2 | 49.2 | ||
Consumer | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 21.6 | $ 63.3 |
Revenue from Contracts with _11
Revenue from Contracts with Customers - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 02, 2019 | Mar. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Liability, Revenue Recognized | $ 17.8 | $ 26.6 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | Aug. 31, 2018 | Jun. 07, 2018 | Jul. 31, 2017 | Mar. 02, 2019 | Mar. 03, 2018 |
Business Acquisition [Line Items] | |||||
Payments to Acquire Intangible Assets | $ 4.8 | $ 0 | |||
Proceeds from sale of property and dealers | $ 0 | 2 | |||
MAARS | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 48.00% | ||||
Purchase price | $ 6.1 | ||||
Nine United Denmark A/S | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 33.00% | ||||
Purchase price | $ 65.5 | ||||
Payments to Acquire Intangible Assets | $ 4.8 | ||||
CANADA | Wholly-owned contract furniture dealership | |||||
Business Acquisition [Line Items] | |||||
Proceeds from sale of property and dealers | $ 2 | ||||
(Gain) loss on sales of property and dealers | $ 1.1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 03, 2018 | Jun. 02, 2018 |
Inventories [Abstract] | |||
Finished goods | $ 147.1 | $ 124.2 | |
Raw materials | 44.8 | 38.2 | |
Total | $ 191.9 | $ 155.3 | $ 162.4 |
Goodwill and Indefinite-lived_3
Goodwill and Indefinite-lived Intangibles (Details) $ in Millions | 9 Months Ended |
Mar. 02, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 304.1 |
Foreign currency translation adjustments | (0.1) |
Goodwill, ending | 304 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Indefinite-Lived Intangible Assets (Excluding Goodwill), beginning | 78.1 |
Foreign currency translation adjustments | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), ending | 78.1 |
Rollforward of Goodwill and Indefinite-lived Intangible Assets [Roll Forward] | |
Goodwill and indefinite-lived intangibles, beginning | 382.2 |
Foreign currency translation adjustments | (0.1) |
Goodwill and indefinite-lived intangibles, ending | $ 382.1 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - Foreign Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Defined Benefit Plan Disclosure | ||||
Interest cost | $ 0.7 | $ 0.8 | $ 2 | $ 2.5 |
Expected return on plan assets | (1.1) | (1.7) | (3.3) | (5.3) |
Net amortization loss | 0.7 | 1.3 | 2 | 3.9 |
Net periodic benefit cost | $ 0.3 | 0.4 | $ 0.7 | 1.1 |
Employer voluntary contributions | 12 | |||
Retrospective adjustment ASU 2017-07 | ||||
Defined Benefit Plan Disclosure | ||||
Net periodic benefit cost, reclassification | $ 0.4 | $ 1.2 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Earnings Per Share [Abstract] | ||||
Numerator for both basic and diluted EPS, Net earnings attributable to Herman Miller, Inc. - in millions | $ 39.2 | $ 29.8 | $ 114.5 | $ 96.3 |
Denominator for basic EPS, weighted-average common shares outstanding | 58,838,958 | 59,691,709 | 59,087,899 | 59,753,271 |
Potentially dilutive shares resulting from stock plans | 288,300 | 670,375 | 360,395 | 620,943 |
Denominator for diluted EPS | 59,127,258 | 60,362,084 | 59,448,294 | 60,374,214 |
Antidilutive equity awards not included in weighted-average common shares - diluted | 401,811 | 101,763 | 211,097 | 381,446 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 2.2 | $ 1.8 | $ 7.2 | $ 4.8 |
Related income tax effect | $ 0.5 | $ 0.5 | $ 1.6 | $ 1.4 |
Income Taxes - Schedule of Unce
Income Taxes - Schedule of Uncertain Tax Positions (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 1 | $ 1 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | Jun. 02, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 1.8 | $ 1 | $ 3.1 | ||
Effective Income Tax Rate Reconciliation, Percent | 16.00% | 19.00% | 19.60% | 27.30% |
Income Taxes Schedule of Unreco
Income Taxes Schedule of Unrecognized Tax Benefits Roll Forward (Details) $ in Millions | 9 Months Ended |
Mar. 02, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits, Beginning Balance | $ 3.2 |
Increases related to current year income tax positions | 0.3 |
Decreases related to settlements | (1.1) |
Unrecognized Tax Benefits, Ending Balance | $ 2.4 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 281.9 | $ 275 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 285.4 | 285.8 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 288.1 | $ 288.6 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds - equity | $ 0.9 | $ 0.9 |
Fixed Income Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8 | 7.7 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan | 15.9 | 15.1 |
Total | 17.5 | 16.4 |
Contingent consideration | 0 | 0 |
Total | 0.3 | 0.3 |
Available-for-sale Securities | 18 | 22.7 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Interest rate swap agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 10 | 15 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Forward | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts | 0.7 | 0.4 |
Foreign currency forward contracts | 0.3 | 0.3 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds - equity | 0.9 | 0.9 |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Fixed Income Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8 | 7.7 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan | 0 | 0 |
Total | 0 | 0 |
Contingent consideration | 0.4 | 0.5 |
Total | 0.4 | 0.5 |
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Interest rate swap agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Foreign Exchange Forward | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward contracts | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds - equity | 0 | 0 |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Fixed Income Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Money market funds | NAV | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 31 | 121 |
Money market funds | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 02, 2019 | Mar. 03, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0.5 | $ 0.5 |
Net realized losses (gains) | 0 | 0 |
Payments | (0.1) | (0.1) |
Ending balance | $ 0.4 | $ 0.4 |
Fair Value Measurements - Unrea
Fair Value Measurements - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment Owned, at Cost | $ 8.9 | $ 8.5 |
Unrealized Gain/(loss) | 0 | 0.1 |
Investment Owned, at Fair Value | 8.9 | 8.6 |
Fixed Income Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost | 8 | 7.8 |
Unrealized Gain/(loss) | 0 | (0.1) |
Market Value | 8 | 7.7 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI, Cost | 0.9 | 0.7 |
Available-for-sale Equity Securities, Gross Unrealized Gain | 0 | 0.2 |
Mutual funds - equity | $ 0.9 | $ 0.9 |
Fair Value Measurements Fair _3
Fair Value Measurements Fair Value Measurements (Details) - USD ($) | Jun. 12, 2017 | Sep. 30, 2016 | Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | Feb. 29, 2020 | Jun. 02, 2018 |
Derivative [Line Items] | ||||||||
Interest rate swaps | $ (4,400,000) | $ 5,900,000 | $ (3,900,000) | $ 6,900,000 | ||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | 0 | ||||
Other comprehensive income (loss), reclassification adjustment from aoci on derivatives, before tax | 200,000 | $ 0 | $ 0 | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 2,000,000 | |||||||
Interest rate swap agreement | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 75,000,000 | $ 150,000,000 | ||||||
Debt conversion rate | 2.387% | 1.949% | ||||||
Fixed Income Securities | ||||||||
Derivative [Line Items] | ||||||||
Market Value | 8,000,000 | 8,000,000 | $ 7,700,000 | |||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||||||
Derivative [Line Items] | ||||||||
Market Value | 18,000,000 | 18,000,000 | 22,700,000 | |||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Interest rate swap agreement | ||||||||
Derivative [Line Items] | ||||||||
Market Value | 10,000,000 | 10,000,000 | 15,000,000 | |||||
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Fixed Income Securities | ||||||||
Derivative [Line Items] | ||||||||
Market Value | $ 8,000,000 | $ 8,000,000 | $ 7,700,000 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |
Mar. 02, 2019 | Jun. 02, 2018 | |
Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 6,400,000 | |
Guarantor Obligations, Current Carrying Value | 0 | $ 0 |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 10,000,000 | |
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Minimum | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Term | P1Y | |
Maximum | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Term | P3Y |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Accrual Balance — beginning | $ 52.4 | $ 53.3 | $ 51.5 | $ 47.7 |
Accrual for product-related matters | 4.6 | 4.2 | 15.3 | 19.2 |
Settlements and adjustments | (4.5) | (4.6) | (14.3) | (14) |
Accrual Balance — ending | $ 52.5 | $ 52.9 | $ 52.5 | $ 52.9 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies - Additional (Details) - USD ($) | 9 Months Ended | |
Mar. 02, 2019 | Jun. 02, 2018 | |
Loss Contingencies [Line Items] | ||
Warranty Length | 12 years | |
Contingent Equity Method Purchase | 33.00% | |
Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Minimum | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Term | P1Y | |
Maximum | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Term | P3Y |
Schedule of Long Term Debt (Det
Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 281.9 | $ 275 |
Long-term Construction Loan, Noncurrent | 6.9 | 7 |
Other Short-term Borrowings | 3.5 | 3.8 |
Debt, Long-term and Short-term, Combined Amount | 285.4 | 285.8 |
Short-term Debt | (3.5) | (10.8) |
Revolving Line of Credit, Domestic | ||
Debt Instrument [Line Items] | ||
Long-term debt | 225 | 225 |
Debt, Debt Securities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50 | $ 50 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 281.9 | $ 275 |
Lessee, Finance Lease, Discount Rate | 2.90% | |
Finance Leased Assets, Gross | $ 6.8 | 7 |
Long-term Construction Loan, Noncurrent | 6.9 | 7 |
Revolving Line of Credit, Domestic | ||
Line of Credit Facility [Line Items] | ||
Revolving line of credit, maximum borrowing capacity | 400 | |
Revolving line of credit, allowed increase in borrowing capacity | 200 | |
Long-term debt | 225 | 225 |
Line of Credit Facility, Remaining Borrowing Capacity | 165 | 166.8 |
Letters of Credit Outstanding, Amount | $ 10 | $ 8.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Mar. 02, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Mar. 02, 2019 | Mar. 03, 2018 | Sep. 02, 2018 | Jun. 03, 2018 | Sep. 03, 2017 | Jun. 04, 2017 | |
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at beginning of period | $ 685.4 | $ 673.2 | $ 664.8 | $ 631 | $ 608.7 | $ 587.7 | $ 664.8 | $ 587.7 | ||||
Cumulative effect of accounting change | $ 1.9 | $ (0.1) | $ (0.1) | |||||||||
Other comprehensive income (loss) | 4.3 | (3.1) | (7.8) | 8.5 | 3.6 | 3.7 | (6.6) | 15.8 | ||||
Balance at end of period | 714.9 | 685.4 | 673.2 | 657.5 | 631 | 608.7 | 714.9 | 657.5 | ||||
Cumulative Translation Adjustments | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at beginning of period | (34.1) | (36.8) | (34.1) | (36.8) | ||||||||
Cumulative effect of accounting change | 0 | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||||||||||
Tax benefit | 0 | 0 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||||||||
Other comprehensive income (loss) | (4.4) | 6.3 | ||||||||||
Balance at end of period | (38.5) | (30.5) | (38.5) | (30.5) | ||||||||
Pension and Other Post-retirement Benefit Plans | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at beginning of period | (37.2) | (47.6) | (37.2) | (47.6) | ||||||||
Cumulative effect of accounting change | 0 | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | 3.2 | ||||||||||
Tax benefit | (0.3) | (0.6) | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1.7 | 2.6 | ||||||||||
Other comprehensive income (loss) | 1.7 | 2.6 | ||||||||||
Balance at end of period | (35.5) | (45) | (35.5) | (45) | ||||||||
Unrealized Gains on Available-for-sale Securities | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at beginning of period | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||
Cumulative effect of accounting change | (0.1) | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||||||||||
Tax benefit | 0 | 0 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||||||||
Other comprehensive income (loss) | 0 | 0 | ||||||||||
Balance at end of period | 0 | 0.1 | 0 | 0.1 | ||||||||
Interest Rate Swap Agreement | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at beginning of period | 9.9 | 2.1 | 9.9 | 2.1 | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (4.2) | |||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0.3 | 0 | ||||||||||
Tax benefit | 0 | 0 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.3 | 0 | ||||||||||
Other comprehensive income (loss) | 6.9 | |||||||||||
Balance at end of period | 7.5 | 9 | 7.5 | 9 | ||||||||
Accumulated Other Comprehensive Loss | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balance at beginning of period | (70.8) | (69.2) | (61.3) | (74.9) | (78.5) | (82.2) | (61.3) | (82.2) | ||||
Cumulative effect of accounting change | 1.4 | 1.4 | $ 1.5 | $ (0.1) | ||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (8.6) | 13.2 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2.3 | 3.2 | ||||||||||
Tax benefit | (0.3) | (0.6) | ||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2 | 2.6 | ||||||||||
Other comprehensive income (loss) | 4.3 | (3.1) | (7.8) | 8.5 | 3.6 | 3.7 | (6.6) | 15.8 | ||||
Balance at end of period | $ (66.5) | $ (70.8) | $ (69.2) | $ (66.4) | $ (74.9) | $ (78.5) | $ (66.5) | $ (66.4) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Domain] | Interest Rate Swap Agreement | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Cumulative effect of accounting change | $ 1.5 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Mar. 02, 2019 | Mar. 03, 2018 | |
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable Noncontrolling Interests, Beginning | $ 30.5 | ||||
Redemption value adjustment | $ (0.4) | $ (0.3) | $ 0.2 | ||
Redeemable Noncontrolling Interests, Ending | 20.7 | ||||
Herman Miller Consumer Holdings | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Redeemable Noncontrolling Interests, Beginning | $ 24.6 | 30.5 | $ 24.6 | ||
Purchase of redeemable noncontrolling interests | 10.1 | 1 | |||
Net income attributable to redeemable noncontrolling interests | 0.1 | 0.2 | |||
Exercised options | 0.2 | 0 | |||
Redemption value adjustment | 0 | 0.5 | |||
Redeemable Noncontrolling Interests, Ending | $ 24.3 | $ 20.7 | $ 24.3 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 02, 2019 | Mar. 03, 2018 | Mar. 02, 2019 | Mar. 03, 2018 | Jun. 02, 2018 | |
Segment Reporting Information | |||||
Net sales | $ 619 | $ 578.4 | $ 1,896.2 | $ 1,763.2 | |
Operating Earnings (Loss): | 47.8 | 38.7 | 146.9 | 138.6 | |
Total Assets | 1,529.2 | 1,529.2 | $ 1,479.5 | ||
North American Furniture Solutions | |||||
Segment Reporting Information | |||||
Net sales | 320.9 | 316.4 | 1,017.8 | 975.3 | |
Operating Earnings (Loss): | 37.4 | 37.8 | 128.7 | 131.6 | |
Total Assets | 512.2 | 512.2 | 488.7 | ||
ELA Furniture Solutions | |||||
Segment Reporting Information | |||||
Net sales | 126 | 102.6 | 359.9 | 309 | |
Operating Earnings (Loss): | 16.3 | 7.6 | 40.7 | 27.3 | |
Total Assets | 372.3 | 372.3 | 283.4 | ||
Specialty | |||||
Segment Reporting Information | |||||
Net sales | 76.1 | 72.6 | 235 | 222.2 | |
Operating Earnings (Loss): | 2.8 | 2 | 10.8 | 5.7 | |
Total Assets | 201.6 | 201.6 | 188.7 | ||
Consumer | |||||
Segment Reporting Information | |||||
Net sales | 96 | 86.8 | 283.5 | 256.7 | |
Operating Earnings (Loss): | 2.3 | 4.2 | 6.3 | 5.5 | |
Total Assets | 310.8 | 310.8 | 291.2 | ||
Corporate | |||||
Segment Reporting Information | |||||
Operating Earnings (Loss): | (11) | $ (12.9) | (39.6) | $ (31.5) | |
Total Assets | $ 132.3 | $ 132.3 | $ 227.5 |
Restructuring Activities Rest_3
Restructuring Activities Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 02, 2019 | Dec. 02, 2017 | Sep. 02, 2017 | Mar. 02, 2019 | Mar. 03, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 1.7 | $ 1.9 | |||
ELA Furniture Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Effect on Future Earnings, Amount | $ 3 | ||||
Restructuring Charges | 0.3 | ||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Restructuring Costs | 1.7 | ||||
Amounts Paid | (0.8) | ||||
Charges Against Assets | (0.8) | ||||
Ending Balance | 0.1 | 0.1 | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 5 | 5 | |||
Restructuring and Related Cost, Cost Incurred to Date | 5.6 | 5.6 | |||
Restructuring and Related Cost, Expected Cost Remaining | 2 | 2 | |||
North American Furniture Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 0.5 | $ 1.4 | |||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 2.4 | 2.4 | |||
Restructuring Costs | 1.9 | ||||
Amounts Paid | (4) | ||||
Ending Balance | $ 0.3 | ||||
UNITED KINGDOM | ELA Furniture Solutions | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges Against Assets | (0.8) | ||||
CHINA | ELA Furniture Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0.7 | ||||
Employee Severance [Member] | ELA Furniture Solutions | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Restructuring Costs | 0.2 | ||||
Amounts Paid | (0.1) | ||||
Charges Against Assets | 0 | ||||
Ending Balance | 0.1 | 0.1 | |||
Impaired Long-Lived Assets Held and Used, Asset Name | ELA Furniture Solutions | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Restructuring Costs | 0.8 | ||||
Amounts Paid | 0 | ||||
Charges Against Assets | (0.8) | ||||
Ending Balance | 0 | 0 | |||
Facility Closing [Member] | ELA Furniture Solutions | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Restructuring Costs | 0.7 | ||||
Amounts Paid | (0.7) | ||||
Charges Against Assets | 0 | ||||
Ending Balance | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 02, 2019 | Jun. 02, 2018 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | Other Noncurrent Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Accounts and Notes Receivable, Net | $ 3.6 | $ 2.5 |
Uncategorized Items - hmi10q030
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (300,000) |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (100,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,900,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (100,000) |