Document_Entity_Information
Document Entity Information (USD $) | 12 Months Ended | ||
31-May-14 | Jul. 24, 2014 | Nov. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'MILLER HERMAN INC | ' | ' |
Entity Central Index Key | '0000066382 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-May-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--05-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,864,534,305 |
Entity Common Stock, Shares Outstanding | ' | 59,404,641 | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net sales | $1,882 | $1,774.90 | $1,724.10 |
Cost of sales | 1,251 | 1,169.70 | 1,133.50 |
Gross margin | 631 | 605.2 | 590.6 |
Operating expenses: | ' | ' | ' |
Selling, general, and administrative | 564.3 | 429.2 | 394.9 |
Restructuring and impairment expenses | 26.5 | 1.2 | 5.4 |
Design and research | 65.9 | 59.9 | 52.7 |
Total operating expenses | 656.7 | 490.3 | 453 |
Operating earnings (loss) | -25.7 | 114.9 | 137.6 |
Other expenses (income): | ' | ' | ' |
Interest expense | 17.6 | 17.2 | 17.5 |
Interest and other investment income | -0.4 | -0.4 | -1 |
Other, net | 0.5 | 0.9 | 1.6 |
Net other expenses | 17.7 | 17.7 | 18.1 |
Earnings (loss) before income taxes | -43.4 | 97.2 | 119.5 |
Income tax expense (benefit) | -21.2 | 28.9 | 44.3 |
Equity earnings (loss) from nonconsolidated affiliates, net of tax | 0.1 | -0.1 | 0 |
Net earnings (loss) | -22.1 | 68.2 | 75.2 |
Earnings (loss) per share — basic (in usd per share) | ($0.37) | $1.17 | $1.29 |
Earnings (loss) per share — diluted (in usd per share) | ($0.37) | $1.16 | $1.29 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 2.9 | -1 | -7.1 |
Pension and post-retirement liability adjustments (net of tax of $(50.9), $(8.8), and $12.2) | 83.5 | 17.3 | -29.3 |
Total other comprehensive income (loss) | 86.4 | 16.3 | -36.4 |
Comprehensive income | $64.30 | $84.50 | $38.80 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Pension and post-retirement liability adjustments | ($50.90) | ($8.80) | $12.20 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $101.50 | $82.70 |
Marketable securities | 11.1 | 10.8 |
Accounts receivable, less allowances of $4.0 in 2014 and $4.4 in 2013 | 204.3 | 178.4 |
Inventories, net | 78.4 | 76.2 |
Deferred income taxes | 23.9 | 22.1 |
Prepaid property and other taxes | 12.7 | 8.1 |
Other | 19.9 | 21 |
Total Current Assets | 451.8 | 399.3 |
Property and Equipment: | ' | ' |
Land and improvements | 21.5 | 26.7 |
Buildings and improvements | 161.1 | 160 |
Machinery and equipment | 576.7 | 558.3 |
Construction in progress | 29.9 | 20.3 |
Gross Property and Equipment | 789.2 | 765.3 |
Less: accumulated depreciation | -594 | -581.2 |
Net Property and Equipment | 195.2 | 184.1 |
Goodwill | 228.2 | 227 |
Indefinite-lived intangibles | 40.9 | 62.3 |
Other amortizable intangibles, net | 44.2 | 48 |
Other assets | 30.6 | 25.8 |
Total Assets | 990.9 | 946.5 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt | 50 | 0 |
Accounts payable | 136.9 | 130.1 |
Accrued compensation and benefits | 65 | 65.9 |
Accrued warranty | 25.2 | 24.8 |
Other accrued liabilities | 79 | 69.2 |
Total Current Liabilities | 356.1 | 290 |
Long-term debt | 200 | 250 |
Pension and post-retirement benefits | 18.2 | 39.6 |
Other liabilities | 44.5 | 47.4 |
Total Liabilities | 618.8 | 627 |
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, 59,314,822 and 58,682,958 shares issued and outstanding in 2014 and 2013, respectively) | 11.9 | 11.7 |
Additional paid-in capital | 122.4 | 102.9 |
Retained earnings | 277.4 | 331.1 |
Accumulated other comprehensive loss | -37.9 | -124.3 |
Key executive deferred compensation | -1.7 | -1.9 |
Total Stockholders' Equity | 372.1 | 319.5 |
Total Liabilities and Stockholders' Equity | $990.90 | $946.50 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $4 | $4.40 |
Preferred Stock, No Par Value | $0 | $0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $0.20 | $0.20 |
Common Stock, Shares Authorized | 240,000,000 | 240,000,000 |
Common Stock, Shares, Outstanding | 59,314,822 | 58,682,958 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Key Executive Deferred Compensation | Restricted Stock Units | Restricted Stock Units | Restricted Stock | Restricted Stock |
In Millions, except Share data, unless otherwise specified | Additional Paid-In Capital | Additional Paid-In Capital | ||||||||
Beginning Balance (in usd) at May. 28, 2011 | $205 | $11.60 | $82 | $218.20 | ($104.20) | ($2.60) | ' | ' | ' | ' |
Beginning Balance (in shares) at May. 28, 2011 | ' | 58,048,858 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) | 75.2 | ' | ' | 75.2 | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | -36.4 | ' | ' | ' | -36.4 | ' | ' | ' | ' | ' |
Total comprehensive income | 38.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared | -5.2 | ' | ' | -5.2 | ' | ' | ' | ' | ' | ' |
Exercised | ' | 215,524 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in usd) | 4.3 | 0.1 | 4.2 | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan (in shares) | ' | 109,435 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan (in usd) | 2.1 | ' | 2.1 | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit for stock-based compensation | -0.1 | ' | -0.1 | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock (in shares) | ' | -115,012 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock (in usd) | -2.7 | ' | -2.7 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units released (in shares) | ' | 99,007 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units released (in usd) | 2.9 | ' | 2.9 | ' | ' | ' | ' | ' | ' | ' |
Stock option compensation expense | 2.8 | ' | 2.8 | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation plan | -0.1 | ' | 0.6 | ' | ' | -0.7 | ' | ' | ' | ' |
Directors' fees (in shares) | ' | 18,119 | ' | ' | ' | ' | ' | ' | ' | ' |
Directors' fees (in usd) | 0.3 | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance (in usd) at Jun. 02, 2012 | 248.3 | 11.7 | 90.9 | 288.2 | -140.6 | -1.9 | ' | ' | ' | ' |
Ending Balance (in shares) at Jun. 02, 2012 | ' | 58,375,931 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) | 68.2 | ' | ' | 68.2 | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | 16.3 | ' | ' | ' | 16.3 | ' | ' | ' | ' | ' |
Total comprehensive income | 84.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared | -25.3 | ' | ' | -25.3 | ' | ' | ' | ' | ' | ' |
Exercised | ' | 297,255 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in usd) | 5.2 | ' | 5.2 | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan (in shares) | ' | 84,075 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan (in usd) | 1.9 | ' | 1.9 | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit for stock-based compensation | 0.3 | ' | 0.3 | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock (in shares) | ' | -154,917 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock (in usd) | -3.6 | ' | -3.6 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units released (in shares) | ' | 64,868 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units released (in usd) | ' | ' | ' | ' | ' | ' | 3.2 | 3.2 | 0.3 | 0.3 |
Stock option compensation expense | 3.6 | ' | 3.6 | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation plan | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Performance stock units compensation expense | 0.7 | ' | 0.7 | ' | ' | ' | ' | ' | ' | ' |
Directors' fees (in shares) | ' | 15,746 | ' | ' | ' | ' | ' | ' | ' | ' |
Directors' fees (in usd) | 0.4 | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance (in usd) at Jun. 01, 2013 | 319.5 | 11.7 | 102.9 | 331.1 | -124.3 | -1.9 | ' | ' | ' | ' |
Ending Balance (in shares) at Jun. 01, 2013 | 58,682,958 | 58,682,958 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings (loss) | -22.1 | ' | ' | -22.1 | ' | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | 86.4 | ' | ' | ' | 86.4 | ' | ' | ' | ' | ' |
Total comprehensive income | 64.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared | -31.6 | ' | ' | -31.6 | ' | ' | ' | ' | ' | ' |
Exercised | ' | 821,050 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in usd) | 19 | 0.2 | 18.8 | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan (in shares) | ' | 63,753 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan (in usd) | 1.8 | ' | 1.8 | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit for stock-based compensation | 0.5 | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock (in shares) | ' | -408,391 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and retirement of common stock (in usd) | -12.7 | ' | -12.7 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units released (in shares) | ' | 143,094 | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units released (in usd) | ' | ' | ' | ' | ' | ' | 5.4 | 5.4 | 0.2 | 0.2 |
Stock option compensation expense | 2.3 | ' | 2.3 | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation plan | 0 | ' | -0.2 | ' | ' | 0.2 | ' | ' | ' | ' |
Performance stock units compensation expense | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Directors' fees (in shares) | ' | 12,358 | ' | ' | ' | ' | ' | ' | ' | ' |
Directors' fees (in usd) | 0.4 | ' | 0.4 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance (in usd) at May. 31, 2014 | $372.10 | $11.90 | $122.40 | $277.40 | ($37.90) | ($1.70) | ' | ' | ' | ' |
Ending Balance (in shares) at May. 31, 2014 | 59,314,822 | 59,314,822 | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends declared | $0.53 | $0.43 | $0.09 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net earnings (loss) | ($22.10) | $68.20 | $75.20 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities | 112.2 | 68.3 | 14.9 |
Net Cash Provided by Operating Activities | 90.1 | 136.5 | 90.1 |
Cash Flows from Investing Activities: | ' | ' | ' |
Marketable securities purchases | -5.2 | -3.7 | -7.1 |
Marketable securities sales | 4.9 | 2.5 | 8.5 |
Capital expenditures | -40.8 | -50.2 | -28.5 |
Proceeds from sales of property and dealers | 1.3 | 1.2 | 17.4 |
Acquisitions, net of cash received | -6.7 | -157.5 | -47.1 |
Other, net | -1.7 | -2 | -1.6 |
Net Cash Used for Investing Activities | -48.2 | -209.7 | -58.4 |
Cash Flows from Financing Activities: | ' | ' | ' |
Notes payable payments | 0 | -2.4 | 0 |
Proceeds from notes payable | 0 | 2.4 | 0 |
Dividends paid | -30.3 | -19.1 | -5.2 |
Common stock issued | 20.8 | 7.2 | 6.4 |
Common stock repurchased and retired | -12.7 | -3.6 | -2.7 |
Excess tax benefit for stock-based compensation | 1.1 | 0.3 | -0.1 |
Payment of contingent consideration obligation | -1.3 | -0.8 | 0 |
Net Cash Used for Financing Activities | -22.4 | -16 | -1.6 |
Effect of exchange rate changes on cash and cash equivalents | -0.7 | -0.3 | -0.1 |
Net Increase (Decrease) in Cash and Cash Equivalents | 18.8 | -89.5 | 30 |
Cash and cash equivalents, beginning of year | 82.7 | 172.2 | 142.2 |
Cash and Cash Equivalents, End of Year | 101.5 | 82.7 | 172.2 |
Other Cash Flow Information | ' | ' | ' |
Interest paid | 15.6 | 14.9 | 16.4 |
Income taxes paid, net of cash received | $34.50 | $37.70 | $19.70 |
Significant_Accounting_and_Rep
Significant Accounting and Reporting Policies | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Significant Accounting Policies | ' | |||||||||||||||
Significant Accounting and Reporting Policies | ||||||||||||||||
The following is a summary of significant accounting and reporting policies not reflected elsewhere in the accompanying financial statements. | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The Consolidated Financial Statements include the accounts of Herman Miller, Inc. and its majority-owned domestic and foreign subsidiaries. The consolidated entities are collectively referred to as “the company.” All intercompany accounts and transactions have been eliminated in the Consolidated Financial Statements. Nonconsolidated affiliates (20-50 percent owned companies) are accounted for using the equity method. | ||||||||||||||||
Description of Business | ||||||||||||||||
The company researches, designs, manufactures and distributes interior furnishings, for use in various environments including office, healthcare, educational, and residential settings, and provides related services that support companies all over the world. The company's products are sold primarily through independent contract office furniture dealers as well as the following channels: owned contract office furniture dealers, direct customer sales, independent retailers, and the company's online store. Accordingly, accounts and notes receivable in the accompanying balance sheets are principally amounts due from the dealers. | ||||||||||||||||
Fiscal Year | ||||||||||||||||
The company's fiscal year ends on the Saturday closest to May 31. The fiscal years ended May 31, 2014 and June 1, 2013 each contain 52 weeks, while the fiscal year ended June 2, 2012 contains 53 weeks. An extra week in the company's fiscal year is required approximately every six years in order to realign its fiscal calendar-end dates with the actual calendar months. | ||||||||||||||||
Foreign Currency Translation | ||||||||||||||||
The functional currency for foreign subsidiaries is their local currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the United States dollar using fiscal year-end exchange rates and translating revenue and expense accounts using average exchange rates for the period is reflected as a component of “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. The financial statement impact of remeasuring all foreign currency transactions into the appropriate functional currency resulted in a net loss of $1.2 million, $1.3 million and $1.3 million for the fiscal years ended May 31, 2014, June 1, 2013 and June 2, 2012, respectively. These amounts are included in “Other expenses (income)” in the Consolidated Statements of Comprehensive Income. | ||||||||||||||||
Cash Equivalents | ||||||||||||||||
The company holds cash equivalents as part of its cash management function. Cash equivalents include money market funds, time deposit investments, and treasury bills with original maturities of less than three months. The carrying value of cash equivalents, which approximates fair value, totaled $5.6 million and $5.9 million as of May 31, 2014 and June 1, 2013, respectively. All cash and cash equivalents are high-credit quality financial instruments, and the amount of credit exposure to any one financial institution or instrument is limited. | ||||||||||||||||
Marketable Securities | ||||||||||||||||
The company maintains a portfolio of marketable securities primarily comprised of investment-grade, fixed-income securities. These investments are held by the company's wholly owned insurance captive and are considered “available-for-sale” securities. Accordingly, they have been recorded at fair value based on quoted market prices, with the resulting net unrealized holding gains or losses reflected net of tax as a component of “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. | ||||||||||||||||
All marketable security transactions are recognized on the trade date. Realized gains and losses on disposal of available-for-sale investments are included in “Interest and other investment income” in the Consolidated Statements of Comprehensive Income. See Note 11 of the Consolidated Financial Statements for additional disclosures of marketable securities. | ||||||||||||||||
Accounts Receivable Allowances | ||||||||||||||||
Reserves for uncollectible accounts receivable balances are based on known customer exposures, historical credit experience, and the specific identification of other potentially uncollectible accounts. Balances are written off against the reserve once the company determines the probability of collection to be remote. The company generally does not require collateral or other security on trade accounts receivable. | ||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||
Our trade receivables are primarily due from independent dealers who, in turn, carry receivables from their customers. We monitor and manage the credit risk associated with individual dealers and direct customers where applicable. Dealers are responsible for assessing and assuming credit risk of their customers and may require their customers to provide deposits, letters of credit or other credit enhancement measures. Some sales contracts are structured such that the customer payment or obligation is direct to us. In those cases, we may assume the credit risk. Whether from dealers or customers, our trade credit exposures are not concentrated with any particular entity. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories are valued at the lower of cost or market and include material, labor, and overhead. Inventory cost is determined using the last-in, first-out (LIFO) method at the manufacturing sites in Michigan, whereas inventories of the company's other subsidiaries are valued using the first-in, first-out (FIFO) method. The company establishes reserves for excess and obsolete inventory, based on prevailing circumstances and judgment for consideration of current events, such as economic conditions, that may affect inventory. The reserve required to record inventory at lower of cost or market may be adjusted in response to changing conditions. Further information on the company's recorded inventory balances can be found in Note 3 of the Consolidated Financial Statements. | ||||||||||||||||
Property, Equipment, and Depreciation | ||||||||||||||||
Property and equipment are stated at cost. The cost is depreciated over the estimated useful lives of the assets, using the straight-line method. Estimated useful lives range from 3 to 10 years for machinery and equipment and do not exceed 40 years for buildings. Leasehold improvements are depreciated over the lesser of the lease term or the useful life of the asset, not to exceed 10 years. We capitalize certain external and internal costs incurred in connection with the development, testing, and installation of software for internal use. Software for internal use is included in property and equipment and is depreciated over an estimated useful life not exceeding 5 years. Depreciation and amortization expense is included in the Consolidated Statements of Comprehensive Income in the "Cost of sales", "Selling, general and administrative" and "Design and research" line items. | ||||||||||||||||
As of the end of fiscal 2014, outstanding commitments for future capital purchases approximated $12.7 million. | ||||||||||||||||
Goodwill and Indefinite-lived Intangible Assets | ||||||||||||||||
The company performs an annual goodwill impairment test, by reporting unit, to determine whether the asset values are impaired. A reporting unit is defined as an operating segment or one level below an operating segment. | ||||||||||||||||
The company also evaluates its acquired intangible assets at acquisition to determine whether any have “indefinite useful lives.” Intangible assets with indefinite useful lives, are not subject to amortization. The company's indefinite-lived intangible assets consist of certain trade names valued at approximately $40.9 million and $62.3 million as of fiscal year 2014 and 2013, respectively. These assets have indefinite useful lives and are evaluated annually for impairment using the relief from royalty method. Inputs for the relief from royalty method include revenue forecasts, royalty rate and discount rate. The company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. | ||||||||||||||||
The company recognized asset impairment expenses totaling $21.4 million associated with the Nemschoff and POSH trade name intangibles for the fiscal year 2014. The Nemschoff and Posh trade name assets are included in the North American Furniture Solutions reportable segment and ELA Furniture Solutions segment, respectively. During the fiscal year 2012, the company also recorded impairment expenses of $3.8 million for the indefinite-lived intangible assets related to two healthcare trade names. These impairment expenses are recorded in the restructuring and impairment expense line in the Consolidated Statements of Comprehensive Income and are included in the "Corporate" category within the segment reporting and represent level 3 fair value measurements. | ||||||||||||||||
Goodwill and other indefinite-lived assets included in the Consolidated Balance Sheets consist of the following: | ||||||||||||||||
(In millions) | Goodwill | Indefinite-lived Intangible Assets | Total Goodwill and Indefinite-lived Intangible Assets | |||||||||||||
Balance, June 2, 2012 | $ | 146.4 | $ | 39.3 | $ | 185.7 | ||||||||||
Sale of owned dealers | (0.1 | ) | — | (0.1 | ) | |||||||||||
Maharam acquisition | 80.7 | 23 | 103.7 | |||||||||||||
Balance, June 1, 2013 | 227 | 62.3 | 289.3 | |||||||||||||
Foreign currency translation adjustments | 0.6 | — | 0.6 | |||||||||||||
Sale of owned dealers | (0.4 | ) | — | (0.4 | ) | |||||||||||
China manufacturing and distribution acquisition | 1 | — | 1 | |||||||||||||
Impairment charges | — | (21.4 | ) | (21.4 | ) | |||||||||||
Balance, May 31, 2014 | $ | 228.2 | $ | 40.9 | $ | 269.1 | ||||||||||
Goodwill stemming from the acquisition of Maharam in fiscal 2013 was allocated to the North-American Furniture Solutions and Specialty and Consumer reportable segments. The indefinite-lived intangible assets that were acquired from the Maharam business combination are all included within the Specialty and Consumer reportable segment. | ||||||||||||||||
Long-Lived Assets | ||||||||||||||||
The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. Each impairment test is based on a comparison of the carrying amount of the asset or asset group to the future undiscounted net cash flows expected to be generated by the asset or asset group or in some cases by prices for similar assets. If such assets are considered to be impaired, the impairment amount to be recognized is the amount by which the carrying value of the assets exceeds their fair value. | ||||||||||||||||
Impairment expense of $4.0 million was recording during fiscal 2014 related to property in Ningbo, China. This was due to the acquisition of manufacturing-related assets, including a production facility and related equipment, in Dongguan, China, and as a result, the company decided not to pursue the construction of a new manufacturing and distribution facility on the previously acquired property in Ningbo. The company evaluated the fair value of this property and recorded an asset impairment, equal to the excess of carrying value over fair value. During fiscal 2012, the company recorded an impairment expense of $1.4 million related to fixed assets in connection with the 2012 restructuring plan. Both of these impairment charges were recorded in "Restructuring and impairment expenses" and were classified in the "Corporate" category for segment reporting purposes and represent level 3 fair value measurements. | ||||||||||||||||
Amortizable intangible assets within "Other amortizable intangibles, net" in the Consolidated Balance Sheets consists primarily of patents, trademarks and customer relationships. The "customer relationships" intangible asset is comprised of relationships with customers and specifiers and networks and relationships with dealers and distributors. Refer to the following table for the combined gross carrying value and accumulated amortization for these amortizable intangibles. | ||||||||||||||||
31-May-14 | ||||||||||||||||
(In millions) | Patent and Trademarks | Customer Relationships | Other | Total | ||||||||||||
Gross carrying value | $ | 19.2 | $ | 43.6 | $ | 4.8 | $ | 67.6 | ||||||||
Accumulated amortization | 12.7 | 8.3 | 2.4 | 23.4 | ||||||||||||
Net | $ | 6.5 | $ | 35.3 | $ | 2.4 | $ | 44.2 | ||||||||
1-Jun-13 | ||||||||||||||||
Patent and Trademarks | Customer Relationships | Other | Total | |||||||||||||
Gross carrying value | $ | 21.6 | $ | 40.1 | $ | 5 | $ | 66.7 | ||||||||
Accumulated amortization | 12.3 | 4.8 | 1.6 | 18.7 | ||||||||||||
Net | $ | 9.3 | $ | 35.3 | $ | 3.4 | $ | 48 | ||||||||
The company amortizes these assets over their remaining useful lives using the straight-line method over periods ranging from 5 to 20 years. It is estimated that the average remaining life of such patents and trademarks is approximately 5 years and 6 years, respectively. The estimated average remaining life of the customer relationships is 13 years. | ||||||||||||||||
Estimated amortization expense on existing amortizable intangible assets as of May 31, 2014, for each of the succeeding five fiscal years is as follows: | ||||||||||||||||
(In millions) | ||||||||||||||||
2015 | $ | 4.4 | ||||||||||||||
2016 | $ | 4.4 | ||||||||||||||
2017 | $ | 4.4 | ||||||||||||||
2018 | $ | 4.4 | ||||||||||||||
2019 | $ | 3.8 | ||||||||||||||
Self-Insurance | ||||||||||||||||
The company is partially self-insured for general liability, workers' compensation, and certain employee health and dental benefits under insurance arrangements that provide for third-party coverage of claims exceeding the company's loss retention levels. The company's health benefits retention level does not include an aggregate stop loss policy. The company's retention levels designated within significant insurance arrangements as of May 31, 2014, are as follows: | ||||||||||||||||
(In millions) | Retention Level (per occurrence) | |||||||||||||||
General liability and auto liability/physical damage | $ | 1 | ||||||||||||||
Workers' compensation and property | $ | 0.75 | ||||||||||||||
The company's policy is to accrue amounts equal to the actuarially-determined liabilities for loss and loss adjustment expenses, which are included in “Other liabilities” in the Consolidated Balance Sheets. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical costs, and changes in actual experience could cause these estimates to change. The general and workers' compensation liabilities are managed through the company's wholly-owned insurance captive. | ||||||||||||||||
Research, Development, and Other Related Costs | ||||||||||||||||
Research, development, pre-production, and start-up costs are expensed as incurred. Research and development (R&D) costs consist of expenditures incurred during the course of planned research and investigation aimed at discovery of new knowledge useful in developing new products or processes. R&D costs also include the significant enhancement of existing products or production processes and the implementation of such through design, testing of product alternatives, or construction of prototypes. Research and development costs included in “Design and research” expense in the accompanying Consolidated Statements of Comprehensive Income are $53.9 million, $48.3 million, and $41.0 million, in fiscal 2014, 2013, and 2012, respectively. | ||||||||||||||||
Royalty payments made to designers of the company's products as the products are sold are a variable cost based on product sales. These expenses totaled $12.0 million, $11.6 million, and $11.7 million in fiscal years 2014, 2013, and 2012 respectively. They are included in "Design and research" expense in the accompanying Consolidated Statements of Comprehensive Income | ||||||||||||||||
. | ||||||||||||||||
Customer Payments and Incentives | ||||||||||||||||
We offer various sales incentive programs to our customers, such as rebates, discounts and cooperative advertising programs. Programs such as rebates and discounts are adjustments to the selling price and are therefore characterized as a reduction to net sales. The cooperative advertising program, whereby customers are reimbursed for company approved advertising expenditures, provides us with an identifiable benefit from the advertisement at a verifiable market rate. Therefore, the cost of the cooperative advertising program is recognized as an operating expense and is included in the "Selling, general and administrative" line in the Consolidated Statements of Comprehensive Income. We recognized operating expense related to our cooperative advertising program of $2.0 million for each of the fiscal years ended 2014, 2013, and 2012. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
The company recognizes revenue on sales through its network of independent contract furniture dealers and independent retailers once the related product is shipped and title passes. In situations where products are sold through subsidiary dealers or directly to the end customer, revenue is recognized once the related product is shipped to the end customer and installation, if applicable, is substantially complete. Offers such as rebates and discounts are recorded as reductions to net sales. Unearned revenue occurs during the normal course of business due to advance payments from customers for future delivery of products and services. | ||||||||||||||||
Shipping and Handling Expenses | ||||||||||||||||
The company records shipping and handling related expenses under the caption “Cost of sales” in the Consolidated Statements of Comprehensive Income. | ||||||||||||||||
Cost of Sales | ||||||||||||||||
We include material, labor and overhead in cost of sales. Included within these categories are such items as freight charges, warehousing costs, internal transfer costs, and other costs of our distribution network. | ||||||||||||||||
Selling, General, and Administrative | ||||||||||||||||
We include costs not directly related to the manufacturing of our products in the "Selling, general, and administrative" line within the Consolidated Statements of Comprehensive Income. Included in these expenses are items such as compensation expense, rental expense, royalty expense, warranty expense, and travel and entertainment expense. | ||||||||||||||||
Income Taxes | ||||||||||||||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. | ||||||||||||||||
The company's annual effective tax rate is based on income, statutory tax rates, and tax planning strategies available in the various jurisdictions the company operates. Complex tax laws can be subject to different interpretations by the company and the respective government authorities. Significant judgment is required in evaluating tax positions and determining our tax expense. Tax positions are reviewed quarterly and tax assets and liabilities are adjusted as new information becomes available. | ||||||||||||||||
In evaluating the company's ability to recover deferred tax assets within the jurisdiction from which they arise, the company considers all positive and negative evidence. These assumptions require significant judgment about forecasts of future taxable income. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The company has several stock-based compensation plans, which are described in Note 9 of the Consolidated Financial Statements. Our policy is to expense stock-based compensation using the fair-value based method of accounting for all awards granted. | ||||||||||||||||
Earnings per Share | ||||||||||||||||
Basic earnings per share (EPS) excludes the dilutive effect of common shares that could potentially be issued, due to the exercise of stock options or the vesting of restricted shares, and is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS for fiscal years 2014, 2013, and 2012, was computed by dividing net earnings by the sum of the weighted-average number of shares outstanding, plus all dilutive shares that could potentially be issued. Refer to Note 8 of the Consolidated Financial Statements for further information regarding the computation of EPS. | ||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||
Comprehensive income consists of net earnings, foreign currency translation adjustments, and unrealized holding gain (loss) on “available-for-sale” securities and pension liability adjustments. Refer to Note 15 of the Consolidated Financial Statements for further information regarding Comprehensive income (loss). | ||||||||||||||||
Use of Estimates in the Preparation of Financial Statements | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
Fair Value | ||||||||||||||||
The Company follows ASC Topic 820, Fair Value Measurements and Disclosures, which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. This topic requires fair value measurements to be classified and disclosed in one of the following three categories: | ||||||||||||||||
• | Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges. | |||||||||||||||
• | Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals. | |||||||||||||||
• | Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques. | |||||||||||||||
See Note 11 of the Consolidated Financial Statements for the required fair value disclosures. | ||||||||||||||||
Foreign Currency Forward Contracts Not Designated as Hedges | ||||||||||||||||
The company transacts business in various foreign currencies and has established a program that primarily utilizes foreign currency forward contracts to offset 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. These foreign currency exposures typically arise from net liability or asset exposures in non-functional currencies on the balance sheets of our foreign subsidiaries. These 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. | ||||||||||||||||
As of May 31, 2014, the notional amounts of the forward contracts held to purchase and sell U.S. dollars in exchange for other major international currencies were $26.7 million and the notional amounts of the foreign currency forward contracts held to purchase and sell British pound sterling in exchange for other major international currencies were £15.2 million. The company also has other forward contracts related to other currency pairs at varying notional amounts. | ||||||||||||||||
The effects of derivative instruments on the consolidated financial statements were as follows for the fiscal years ended 2014 and 2013 (amounts presented exclude any income tax effects): | ||||||||||||||||
Fair Value of Derivative Instruments in Consolidated Balance Sheet | ||||||||||||||||
(In millions) | Fiscal Year | |||||||||||||||
Balance Sheet Location | 31-May-14 | 1-Jun-13 | ||||||||||||||
Foreign currency forward contracts not designated as hedges | Other current assets | $ | 0.2 | $ | 0.3 | |||||||||||
Foreign currency forward contracts not designated as hedges | Other current liabilities | $ | 0.1 | $ | 0.3 | |||||||||||
Effects of Derivative Instruments on Income | ||||||||||||||||
(In millions) | Fiscal Year | |||||||||||||||
Recognized Income on Derivative (Gain) Loss Location | 31-May-14 | 1-Jun-13 | June 2, 2012 | |||||||||||||
Foreign currency forward contracts | Other expenses (income): Other, net | $ | (0.1 | ) | $ | — | $ | 0.1 | ||||||||
New Accounting Standards | ||||||||||||||||
Recently Adopted Accounting Guidance | ||||||||||||||||
During the first quarter of fiscal 2014, the company adopted Accounting Standards Update ("ASU") 2013-02, "Comprehensive Income (ASC Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. Refer to Note 15 for the disclosures related to this adoption. | ||||||||||||||||
Accounting Guidance Issued But Not Adopted as of May 31, 2014 | ||||||||||||||||
In July 2013, the Financial Accounting Standards Board issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," which defines the presentation requirements of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted and retrospective application is permitted, but not required. The company is currently evaluating the impact of adopting this guidance. | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board issued a new standard on revenue recognition. The new 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 guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The company is currently evaluating the impact of adopting this guidance. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | ||||
31-May-14 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure | ' | ||||
Acquisitions and Divestitures | |||||
China Manufacturing and Distribution Acquisition | |||||
On September 30, 2013, the company acquired certain assets from Dongguan Sun Hing Steel Furniture Factory Ltd (DGSH) which together, constituted the acquisition of a business. The acquired business is a manufacturing and distribution operation in Dongguan, China, where product sold under the POSH trade name are produced. Subject to the finalization of certain post-closing adjustments, consideration transferred to acquire the net assets of DGSH consisted of $8.2 million in cash, of which $6.7 million was paid during the second and third quarters of fiscal 2014. The final payment is expected to be made within the next 12 months. The company is still finalizing information related to the valuation of the assets acquired and expects to finalize these matters within the measurement period. | |||||
Maharam Acquisition | |||||
On April 23, 2013, the company entered into an agreement to purchase Maharam Fabric Corporation, a New York-based, global designer and provider of high quality interior textiles for commercial, healthcare, and residential interiors. The company pursued the acquisition of Maharam in order to reinforce and accelerate Herman Miller’s Specialty and Consumer initiative and support further opportunities in commercial markets. | |||||
The company closed the transaction on April 29, 2013 for consideration of $155.8 million. As a result of the transaction, 100 percent of the voting equity interests of Maharam were acquired. Furthermore, the company estimates it will receive future tax benefits with a present value of approximately $20 million. The allocation of the purchase price was finalized during the fourth quarter of fiscal 2014. The following table summarizes the fair values of the assets acquired and the liabilities assumed from Maharam on April 29, 2013: | |||||
Assets Acquired and Liabilities Assumed on April 29, 2013 | |||||
(In millions) | Fair Value | ||||
Purchase price | $ | 155.8 | |||
Fair value of the assets acquired | |||||
Accounts receivable | 11.1 | ||||
Inventory | 14.1 | ||||
Other current assets | 4.4 | ||||
Investments in nonconsolidated affiliates | 4.3 | ||||
Other intangible assets | 42.4 | ||||
Goodwill | 80.7 | ||||
Property | 12.1 | ||||
Long term deferred tax asset | 1.6 | ||||
Other assets | 0.2 | ||||
Total assets acquired | 170.9 | ||||
Fair value of liabilities assumed | |||||
Accounts payable | 6.5 | ||||
Current deferred tax liabilities | 1.6 | ||||
Accrued compensation and benefits | 4.7 | ||||
Other accrued liabilities | 1 | ||||
Other long term liabilities | 1.3 | ||||
Total liabilities assumed | 15.1 | ||||
Net assets acquired | $ | 155.8 | |||
The goodwill stemming from the transaction in the amount of $80.7 million was recorded as "Goodwill" in the Consolidated Balance Sheet and allocated to the North American Furniture Solutions and the Specialty and Consumer reportable segments. The amounts were allocated based on the expected synergies to be realized by the reportable segments that will benefit from combining the operations of Maharam into the company. The goodwill amounts allocated to the reportable segments were as follows: | |||||
Goodwill Segment Allocation as of April 29, 2013 | |||||
(In millions) | Fair Value | ||||
North American Furniture Solutions | $ | 31.9 | |||
Specialty and Consumer | 48.8 | ||||
Total Goodwill | $ | 80.7 | |||
Intangible assets acquired as a result of the April 29, 2013 acquisition of Maharam were valued at $42.4 million. These amounts are reflected in the values presented in the table below: | |||||
Intangible Assets Acquired on April 29, 2013 | |||||
(In millions) | Fair Value | Useful Life | |||
Trade name | $ | 23 | Indefinite | ||
Designs and patterns | 3.1 | 5 | |||
Specifier and customer relationships | 16 | 15 | |||
Non-compete agreements | 0.3 | 2 | |||
Total Intangibles Acquired | $ | 42.4 | |||
POSH Acquisition | |||||
On April 3, 2012, the company acquired Sun Hing POSH Holdings Limited (POSH). POSH is a Hong Kong-based designer, and distributor of office furniture systems, freestanding furniture, seating, and filing and storage with distribution in Hong Kong and China. The total purchase price to acquire POSH was approximately $58.9 million, which included $48.8 million in net cash and contingent consideration valued at $10.1 million. | |||||
During fiscal 2014, the portion of the contingent consideration that was related to the targeted sales growth of POSH was reduced by $2.6 million. The benefit of this change in value is reflected within “Total operating expenses” in the Consolidated Statements of Comprehensive Income. Since the acquisition of POSH, payments of $1.4 million have been made related to the contingent consideration obligation. The remaining contingent consideration will be in the form of a cash payment, which the company currently estimates to be $4.1 million. This payment is expected to be made in the next twelve months. | |||||
The company acquired assets valued at $15.8 million, consisting primarily of cash, accounts receivable, inventory and property and equipment, and acquired liabilities valued at $8.6 million. The company also established a deferred tax liability of $4.9 million. Resulting goodwill, indefinite-lived intangibles, and amortizable intangibles were $34.5 million, $19.9 million, and $8.9 million, respectively. The allocation of the purchase price was finalized during the third quarter of fiscal 2013 and the amounts included above are final. POSH is reported within the ELA Furniture Solutions reportable operating segment. | |||||
Divestitures | |||||
During fiscal 2014, the company completed the sale of four wholly-owned contract furniture dealerships. The sale of these dealerships, that were located in Canada, Arkansas, Oregon, and Oklahoma, was not material to the consolidated financial statements. A gain on sale of $1.3 million was recognized as a result of the sale of the Oklahoma dealership. | |||||
During fiscal 2013, the company completed the sale of one wholly-owned contract furniture dealership in Florida, the impact of which was not material to the consolidated financial statements. | |||||
During fiscal 2012, the company completed the sale of three wholly-owned contract furniture dealerships. The sale of these dealerships, that were located in Texas, Colorado, and California, was not material to the consolidated financial statements. |
Inventories
Inventories | 12 Months Ended | ||||||||
31-May-14 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure | ' | ||||||||
Inventories | |||||||||
(In millions) | May 31, 2014 | June 1, 2013 | |||||||
Finished goods and work in process | $ | 58.2 | $ | 57.5 | |||||
Raw materials | 20.2 | 18.7 | |||||||
Total | $ | 78.4 | $ | 76.2 | |||||
The inventories of the manufacturing sites in Michigan are valued using the last-in, first-out method (LIFO). The inventories of all other subsidiaries are valued using the first-in, first-out method. Inventories valued using LIFO amounted to $20.5 million and $22.4 million as of May 31, 2014 and June 1, 2013, respectively. If all inventories had been valued using the first-in first-out method, inventories would have been $89.6 million and $86.9 million at May 31, 2014 and June 1, 2013, respectively. | |||||||||
During 2014, a reduction in inventory quantities resulted in a liquidation of applicable LIFO inventory quantities carried at lower costs in prior years. This LIFO liquidation decreased cost of goods sold by a negligible amount in 2014. | |||||||||
During 2012, a reduction in inventory quantities resulted in a liquidation of applicable LIFO inventory quantities carried at lower costs in prior years. This LIFO liquidation decreased cost of goods sold by a negligible amount in 2012. |
Investments_in_Nonconsolidated
Investments in Nonconsolidated Affiliates | 12 Months Ended | ||
31-May-14 | |||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||
Equity Method Investments and Joint Ventures Disclosure | ' | ||
Investments in Nonconsolidated Affiliates | |||
The company had an ownership interest in four nonconsolidated affiliates at May 31, 2014. These equity method investments were acquired through the Maharam business combination. Refer to the company's ownership percentages shown below: | |||
Ownership Interest | 31-May-14 | 1-Jun-13 | |
Kvadrat Maharam Arabia DMCC | 50.00% | 50.00% | |
Kvadrat Maharam Pty Limited | 50.00% | 50.00% | |
Kvadrat Maharam Turkey JSC | 50.00% | 50.00% | |
Danskina B.V. | 50.00% | 50.00% | |
The Kvadrat Maharam nonconsolidated affiliates are distribution entities that are engaged in selling decorative upholstery, drapery, and wall covering products. Danskina B.V. is a manufacturer and distributor of designer rugs and floor covering products. | |||
At May 31, 2014, the company's investment value in Kvadrat Maharam Pty was $2.3 million more than the company's proportionate share of the underlying net assets ($2.5 million more at June 1, 2013). This difference was driven by a step-up in fair value of the investment in Kvadrat Maharam Pty, stemming from the Maharam business combination. This amount is considered to be a permanent basis difference. | |||
At May 31, 2014, the company's investment value in Danskina B.V. was $1.1 million more than the company's proportionate share of the underlying net assets ($1.1 million more at June 1, 2013). This amount represents the difference in value between the capital contribution made to the joint venture by Maharam and the proportionate share of equity received. This amount is considered to be a permanent basis difference. | |||
The company's investment in its nonconsolidated affiliates was $4.1 million at May 31, 2014 and $4.2 million at June 1, 2013. The company's proportionate share of equity earnings from these companies was $0.1 million for the year ended May 31, 2014 and $(0.1) million for the year ended June 1, 2013. | |||
For the year ended May 31, 2014 and June 1, 2013, the purchases from and sales to nonconsolidated affiliates were immaterial. At May 31, 2014 and June 1, 2013, balances due to and from nonconsolidated affiliates were also immaterial. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
31-May-14 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt consisted of the following obligations: | |||||||||
(In millions) | May 31, 2014 | June 1, 2013 | |||||||
Series A senior notes, 5.94%, due January 3, 2015 | $ | 50 | $ | 50 | |||||
Series B senior notes, 6.42%, due January 3, 2018 | 150 | 150 | |||||||
Debt securities, 6.0%, due March 1, 2021 | 50 | 50 | |||||||
Total | $ | 250 | $ | 250 | |||||
Because the company's Series A Senior Notes are due on January 3, 2015, $50 million was reclassified within the Consolidated Balance Sheet from "Long-term debt" to "Current maturities of long-term debt" during fiscal 2014. | |||||||||
During the second quarter of fiscal 2014, the company entered into a revolving line of credit, which provides the company with approximately $5 million in revolving variable interest borrowing capacity. The company intends to utilize the revolver, which is denominated in Chinese Renminbi, to meet working capital cash flow needs at its South China operations. The uncommitted facility is subject to changes in bank approval and outstanding borrowings bear interest at rates based on a benchmark lending rate. As of May 31, 2014, there were no borrowings against this facility. | |||||||||
During the second quarter of fiscal 2013, the company entered into a revolving line of credit, which provides the company with approximately $5 million in revolving variable interest borrowing capacity. The company intends to utilize the revolver, which is denominated in Chinese Renminbi, to meet working capital cash flow needs at its Ningbo, China operations. The uncommitted facility is subject to changes in bank approval and outstanding borrowings bear interest at rates based on a benchmark lending rate. Each draw on the line of credit is subject to a maximum period of one year, and corresponding interest is payable on the maturity date of each draw. As of May 31, 2014, there were no borrowings against this facility. | |||||||||
During the second quarter of fiscal 2012, the company entered into an amendment and restatement of the syndicated revolving line of credit, which provided the company with up to $150 million in revolving variable interest borrowing capacity and includes an "accordion feature", which allows the company to increase, at its option and subject to the approval of the participating banks, the aggregate borrowing capacity of the facility by $75 million. The facility expires in November 2016 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 a borrowing is outstanding. As of May 31, 2014 and June 1, 2013, total usage against this facility was $4.9 million and $7.7 million respectively, all of which related to outstanding letters of credit. | |||||||||
Our senior notes and the unsecured senior revolving credit facility restrict, without prior consent, our borrowings, capital leases, and the sale of certain assets. In addition, we have agreed to maintain certain financial performance ratios, which include a maximum leverage ratio covenant, which is measured by the ratio of debt to trailing four quarter adjusted EBITDA (as defined in the credit agreement) and is required to be less than 3.5:1, except that we may elect, under certain conditions, to increase the maximum Leverage Ratio to 4.0 to 1.0 for four consecutive fiscal quarter end dates. The covenants also require a minimum interest coverage ratio, which is measured by the ratio of trailing four quarter EBITDA to trailing four quarter interest expense (as defined in the credit agreement) and is required to be greater than 4:1. Adjusted EBITDA is generally defined in the credit agreement as EBITDA adjusted by certain items which include non-cash share-based compensation, non-recurring restructuring costs, legacy pension expenses and extraordinary items. At May 31, 2014 and June 1, 2013, the company was in compliance with all of these restrictions and performance ratios. | |||||||||
Annual maturities of long-term debt for the five fiscal years subsequent to May 31, 2014, are as follows: | |||||||||
(In millions) | |||||||||
2015 | $ | 50 | |||||||
2016 | $ | — | |||||||
2017 | $ | — | |||||||
2018 | $ | 150 | |||||||
2019 | $ | — | |||||||
Thereafter | $ | 50 | |||||||
Operating_Leases
Operating Leases | 12 Months Ended | |||
31-May-14 | ||||
Leases [Abstract] | ' | |||
Leases of Lessee Disclosure | ' | |||
Operating Leases | ||||
The company leases real property and equipment under agreements that expire on various dates. Certain leases contain renewal provisions and generally require the company to pay utilities, insurance, taxes, and other operating expenses. | ||||
Future minimum rental payments required under operating leases that have non-cancelable lease terms as of May 31, 2014, are as follows: | ||||
(In millions) | ||||
2015 | $ | 21 | ||
2016 | $ | 17 | ||
2017 | $ | 11.8 | ||
2018 | $ | 9.8 | ||
2019 | $ | 7.1 | ||
Thereafter | $ | 18.7 | ||
Total rental expense charged to operations was $25.6 million, $23.0 million, and $20.7 million, in fiscal 2014, 2013, and 2012, respectively. Substantially all such rental expense represented the minimum rental payments under operating leases. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Compensation and Employee Benefit Plans | ' | |||||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||||||
The company maintains retirement benefit plans for substantially all of its employees. | ||||||||||||||||||||||||
Pension Plans and Post-Retirement Medical Insurance | ||||||||||||||||||||||||
During fiscal 2014, the company settled the remaining obligations associated with its primary domestic defined benefit pension plans. Plan participants received vested benefits from the plan assets by electing either a lump sum distribution, roll-over contribution to other 401(k) or individual retirement plans, or an annuity contract with a qualifying third-party provider. As a result of the settlement, the company was relieved of any further obligation. Pension settlement charges of $158.2 million, before tax, were recorded during the current year. The settlement expenses included the pre-tax reclassifications of actuarial gains and losses from accumulated other comprehensive loss of $137.7 million, cash contributions to the plan of $48.8 million, net of the outstanding pension plan liability prior to settlement. Cost of goods sold included $49.3 million of the settlement expense, while $108.9 million of the expense was included in operating expenses. After the settlement, the remaining pension assets of $0.9 million were transferred to the company's defined contribution 401(k) plan. | ||||||||||||||||||||||||
The primary domestic defined-benefit plan included benefits determined by a cash balance calculation. Benefits under this plan were based upon an employee's years of service and earnings. The company also offers certain employees retirement benefits under other domestic defined benefit plans. The company provides healthcare benefits to employees who retired from service on or before a qualifying date in 1998. As of the qualifying date, the company discontinued offering post-retirement medical to future retirees. Benefits to qualifying retirees under this plan are based on the employee's years of service and age at the date of retirement. In addition to the domestic pension and retiree healthcare plan, one of the company's wholly owned foreign subsidiaries has a defined-benefit pension plan based upon an average final pay benefit calculation. The measurement date for the company's principal domestic and international pension plans, as well as its post-retirement medical plan, is the last day of the fiscal year. | ||||||||||||||||||||||||
Benefit Obligations and Funded Status | ||||||||||||||||||||||||
The following table presents, for the fiscal years noted, a summary of the changes in the projected benefit obligation, plan assets and funded status of the company's domestic and international pension plans and post-retirement plan: | ||||||||||||||||||||||||
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | Domestic | International | Domestic | International | ||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 314.7 | $ | 91.2 | $ | 332.7 | $ | 86.1 | $ | 9 | $ | 9.8 | ||||||||||||
Service cost | — | — | 1.9 | — | — | — | ||||||||||||||||||
Interest cost | 5.2 | 4.2 | 10.9 | 3.7 | 0.3 | 0.3 | ||||||||||||||||||
Curtailments | — | — | — | — | — | — | ||||||||||||||||||
Plan settlements | (331.1 | ) | — | (40.0 | ) | — | — | — | ||||||||||||||||
Foreign exchange impact | — | 9.6 | — | (1.2 | ) | — | — | |||||||||||||||||
Actuarial (gain)/loss | 16.8 | 2.3 | 15.6 | 4.5 | (1.0 | ) | (0.2 | ) | ||||||||||||||||
Employee contributions | — | — | — | — | — | — | ||||||||||||||||||
Expenses paid | (0.4 | ) | — | — | — | — | — | |||||||||||||||||
Benefits paid | (4.1 | ) | (1.9 | ) | (6.4 | ) | (1.9 | ) | (0.8 | ) | (0.9 | ) | ||||||||||||
Benefit obligation at end of year | $ | 1.1 | $ | 105.4 | $ | 314.7 | $ | 91.2 | $ | 7.5 | $ | 9 | ||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 290 | $ | 84.2 | $ | 316.9 | $ | 72.6 | $ | — | $ | — | ||||||||||||
Actual return on plan assets | (2.3 | ) | 2.4 | 19.5 | 11.1 | — | — | |||||||||||||||||
Foreign exchange impact | — | 8.6 | — | (1.2 | ) | — | — | |||||||||||||||||
Employer contributions | 48.8 | 1.5 | — | 3.6 | 0.8 | 0.9 | ||||||||||||||||||
Employee contributions | — | — | — | — | — | — | ||||||||||||||||||
Plan settlements | (331.1 | ) | — | (40.0 | ) | — | — | — | ||||||||||||||||
Expenses paid | (0.4 | ) | — | — | — | — | — | |||||||||||||||||
Benefits paid | (4.1 | ) | (1.9 | ) | (6.4 | ) | (1.9 | ) | (0.8 | ) | (0.9 | ) | ||||||||||||
Transfers out to 401(k) plan | (0.9 | ) | — | — | — | — | — | |||||||||||||||||
Fair value of plan assets at end of year | $ | — | $ | 94.8 | $ | 290 | $ | 84.2 | $ | — | $ | — | ||||||||||||
Funded status: | ||||||||||||||||||||||||
Under funded status at end of year | $ | (1.1 | ) | $ | (10.6 | ) | $ | (24.7 | ) | $ | (7.0 | ) | $ | (7.5 | ) | $ | (9.0 | ) | ||||||
Components of the amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||||||||||||
Current liabilities | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | — | $ | (0.9 | ) | $ | (1.0 | ) | ||||||||
Non-current liabilities | $ | (1.0 | ) | $ | (10.6 | ) | $ | (24.6 | ) | $ | (7.0 | ) | $ | (6.6 | ) | $ | (8.0 | ) | ||||||
Components of the amounts recognized in accumulated other comprehensive loss before the effect of income taxes: | ||||||||||||||||||||||||
Unrecognized net actuarial loss | $ | 0.4 | $ | 34.3 | $ | 140.5 | $ | 27.9 | $ | 0.3 | $ | 1.3 | ||||||||||||
Unrecognized prior service cost (credit) | — | — | — | — | — | — | ||||||||||||||||||
Accumulated other comprehensive loss | $ | 0.4 | $ | 34.3 | $ | 140.5 | $ | 27.9 | $ | 0.3 | $ | 1.3 | ||||||||||||
The accumulated benefit obligation for the company's domestic pension benefit plans totaled $1.1 million and $314.7 million as of the end of fiscal years 2014 and 2013, respectively. For its international plans, these amounts totaled $102.4 million and $88.3 million as of the same dates, respectively. | ||||||||||||||||||||||||
The following table is a summary of the annual cost of the company's pension and post-retirement plans: | ||||||||||||||||||||||||
Components of Net Periodic Benefit Costs and Other Changes Recognized in Other Comprehensive Income: | ||||||||||||||||||||||||
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Domestic: | ||||||||||||||||||||||||
Service cost | $ | — | $ | 1.9 | $ | 7 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 5.2 | 10.9 | 14.4 | 0.3 | 0.3 | 0.4 | ||||||||||||||||||
Expected return on plan assets | (3.6 | ) | (12.1 | ) | (19.3 | ) | — | — | — | |||||||||||||||
Net amortization | 4.7 | 11.8 | 7.2 | — | 0.1 | 0.1 | ||||||||||||||||||
Curtailment (gain) | — | — | (1.7 | ) | — | — | — | |||||||||||||||||
Settlement Loss | 158.2 | 18.8 | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 164.5 | $ | 31.3 | $ | 7.6 | $ | 0.3 | $ | 0.4 | $ | 0.5 | ||||||||||||
International: | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1.3 | ||||||||||||||||||
Interest cost | 4.2 | 3.7 | 3.9 | |||||||||||||||||||||
Expected return on plan assets | (5.2 | ) | (4.9 | ) | (4.8 | ) | ||||||||||||||||||
Net amortization | 1.8 | 1.4 | 0.3 | |||||||||||||||||||||
Net periodic benefit cost | $ | 0.8 | $ | 0.2 | $ | 0.7 | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income): | ||||||||||||||||||||||||
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 22.9 | $ | 8.2 | $ | (1.0 | ) | $ | (0.3 | ) | ||||||||||||||
Net amortization, curtailment, and settlements | (163.0 | ) | (30.6 | ) | — | (0.1 | ) | |||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | (140.1 | ) | $ | (22.4 | ) | $ | (1.0 | ) | $ | (0.4 | ) | ||||||||||||
International: | ||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 5.2 | $ | (1.7 | ) | |||||||||||||||||||
Effect of exchange rates on amounts included in accumulated other comprehensive income | 3 | (0.2 | ) | |||||||||||||||||||||
Net amortization | (1.8 | ) | (1.4 | ) | ||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 6.4 | $ | (3.3 | ) | |||||||||||||||||||
The net actuarial loss, included in accumulated other comprehensive loss (pretax), expected to be recognized in net periodic benefit cost during fiscal 2015 is $1.9 million. | ||||||||||||||||||||||||
Actuarial Assumptions | ||||||||||||||||||||||||
The weighted-average actuarial assumptions used to determine the benefit obligation amounts and the net periodic benefit cost for the company's pension and post-retirement plans are as follows: | ||||||||||||||||||||||||
The weighted-average used in the determination of net periodic benefit cost: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(Percentages) | Domestic | International | Domestic | International | Domestic | International | ||||||||||||||||||
Discount rate | 3.43 | 4.4 | 3.34 | 4.2 | 4.75 | 5.4 | ||||||||||||||||||
Compensation increase rate | n/a | 3.5 | 3 | 3 | 3 | 3.5 | ||||||||||||||||||
Expected return on plan assets | n/a | 6 | 4.2 | 6 | 7 | 7 | ||||||||||||||||||
The weighted-average used in the determination of the projected benefit obligations: | ||||||||||||||||||||||||
Discount rate | 3.44 | 4.4 | 3.43 | 4.4 | 3.57 | 4.2 | ||||||||||||||||||
Compensation increase rate | n/a | 3.35 | n/a | 3.5 | 3 | 3 | ||||||||||||||||||
In calculating post-retirement benefit obligations for fiscal 2014, a 7.2 percent annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2015, decreasing gradually to 4.5 percent by 2029 and remaining at that level thereafter. For purposes of calculating post-retirement benefit costs, a 7.4 percent annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2014, decreasing gradually to 4.5 percent by 2029 and remaining at that level thereafter. | ||||||||||||||||||||||||
Assumed health care cost-trend rates have a significant effect on the amounts reported for retiree health care costs. A one-percentage-point change in the assumed health care cost-trend rates would have the following effects: | ||||||||||||||||||||||||
(In millions) | 1 Percent Increase | 1 Percent Decrease | ||||||||||||||||||||||
Effect on total fiscal 2014 service and interest cost components | $ | — | $ | — | ||||||||||||||||||||
Effect on post-retirement benefit obligation at May 31, 2014 | $ | 0.2 | $ | (0.2 | ) | |||||||||||||||||||
Plan Assets and Investment Strategies | ||||||||||||||||||||||||
The assets related to the company's primary domestic employee benefit plans were liquidated in connection with the plan termination that occurred during fiscal 2014. Accordingly, plan assets for the primary domestic employee benefit plans were zero as of the end of fiscal 2014. | ||||||||||||||||||||||||
The company's international employee benefit plan assets consist mainly of listed fixed income obligations and common/collective trusts. The company's primary objective for invested pension plan assets is to provide for sufficient long-term growth and liquidity to satisfy all of its benefit obligations over time. Accordingly, the company has developed an investment strategy that it believes maximizes the probability of meeting this overall objective. This strategy includes the development of a target investment allocation by asset category in order to provide guidelines for making investment decisions. This target allocation emphasizes the long-term characteristics of individual asset classes as well as the diversification among multiple asset classes. In developing its strategy, the company considered the need to balance the varying risks associated with each asset class with the long-term nature of its benefit obligations. The company's strategy moving forward will be to increase the level of fixed income investments as the funding status improves, thereby more closely matching the return on assets with the liabilities of the plans. | ||||||||||||||||||||||||
The company utilizes independent investment managers to assist with investment decisions within the overall guidelines of the investment strategy. | ||||||||||||||||||||||||
The target asset allocation at the end of fiscal 2014 and asset categories for the company's primary pension plans for fiscal 2014 and 2013 are as follows: | ||||||||||||||||||||||||
Primary Domestic Plan | ||||||||||||||||||||||||
Asset Category | Targeted Asset Allocation Percentage | Percentage of Plan Assets | ||||||||||||||||||||||
at Year End | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Equities | — | — | 10 | |||||||||||||||||||||
Fixed Income | — | — | 86 | |||||||||||||||||||||
Other | — | — | 4 | |||||||||||||||||||||
Total | — | 100 | ||||||||||||||||||||||
International Plan | ||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Equities | — | — | — | |||||||||||||||||||||
Fixed Income | 20 | 26 | 26 | |||||||||||||||||||||
Common collective trusts | 80 | 74 | 74 | |||||||||||||||||||||
Total | 100 | 100 | ||||||||||||||||||||||
(In millions) | Domestic Plans as of May 31, 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | ||||||||||||||||||
US & international equity securities | — | — | — | |||||||||||||||||||||
Debt securities-corporate | — | — | — | |||||||||||||||||||||
Common collective trust-equities | — | — | — | |||||||||||||||||||||
Common collective trusts-fixed income | — | — | — | |||||||||||||||||||||
Total | $ | — | $ | — | $ | — | ||||||||||||||||||
(In millions) | International Plan as of May 31, 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 0.2 | $ | — | $ | 0.2 | ||||||||||||||||||
Foreign government obligations | — | 24.5 | 24.5 | |||||||||||||||||||||
Common collective trusts-balanced | — | 70.1 | 70.1 | |||||||||||||||||||||
Total | $ | 0.2 | $ | 94.6 | $ | 94.8 | ||||||||||||||||||
(In millions) | Domestic Plans as of June 1, 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 12.5 | $ | — | $ | 12.5 | ||||||||||||||||||
US & international equity securities | 2.2 | — | 2.2 | |||||||||||||||||||||
Debt securities-corporate | 7.6 | — | 7.6 | |||||||||||||||||||||
Common collective trust-equities | — | 26.5 | 26.5 | |||||||||||||||||||||
Common collective trusts-fixed income | — | 241.2 | 241.2 | |||||||||||||||||||||
Total | $ | 22.3 | $ | 267.7 | $ | 290 | ||||||||||||||||||
(In millions) | International Plan as of June 1, 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 0.2 | $ | — | $ | 0.2 | ||||||||||||||||||
Foreign government obligations | — | 22 | 22 | |||||||||||||||||||||
Common collective trusts-balanced | — | 62 | 62 | |||||||||||||||||||||
Total | $ | 0.2 | $ | 84 | $ | 84.2 | ||||||||||||||||||
Cash Flows | ||||||||||||||||||||||||
The company is reviewing whether any additional voluntary pension plan contributions will be made in the next year. Actual contributions will be dependent upon investment returns, changes in pension obligations, and other economic and regulatory factors. In fiscal 2014, the company made total cash contributions of $50.2 million to its benefit plans. Of these cash contributions, $48.8 million were due to the termination of the company’s primary domestic defined benefit pension plans. | ||||||||||||||||||||||||
The following represents a summary of the benefits expected to be paid by the plans in future fiscal years. These expected benefits were estimated based on the same actuarial valuation assumptions used to determine benefit obligations at May 31, 2014. | ||||||||||||||||||||||||
(In millions) | Pension Benefits Domestic | Pension Benefits International | Post-Retirement Benefits | |||||||||||||||||||||
2015 | $ | 0.1 | $ | 1.9 | $ | 0.9 | ||||||||||||||||||
2016 | $ | 0.1 | $ | 2.4 | $ | 0.9 | ||||||||||||||||||
2017 | $ | 0.1 | $ | 2.8 | $ | 0.8 | ||||||||||||||||||
2018 | $ | 0.1 | $ | 3 | $ | 0.8 | ||||||||||||||||||
2019 | $ | 0.1 | $ | 3.1 | $ | 0.7 | ||||||||||||||||||
2020-2024 | $ | 0.4 | $ | 18.7 | $ | 2.7 | ||||||||||||||||||
Profit Sharing, 401(k) Plan, and Core Contribution | ||||||||||||||||||||||||
Herman Miller, Inc. has a trusteed profit sharing plan that includes substantially all domestic employees. These employees are eligible to begin participating on their date of hire. The plan provides for discretionary contributions, payable in the company's common stock, of not more than 6 percent of employees' wages based on the company's financial performance. The cost of the profit sharing contribution during fiscal 2014, 2013, and 2012 were $6.4 million, $5.3 million and $3.4 million, respectively. | ||||||||||||||||||||||||
The company has traditionally matched 50 percent of employee contributions to their 401(k) accounts up to 6 percent of their pay. On September 1, 2012, this was amended to a match of 100 percent up to 3 percent of their pay. A core contribution of 4 percent was also added to the plan. This core contribution was effective as of January 1, 2012 for new employees starting after that date and September 1, 2012 for existing employees. The cost of the company's 401(k) matching contributions and core contributions charged against operations was approximately $20.3 million, $17.0 million, and $6.8 million in fiscal years 2014, 2013 and 2012, respectively. |
Common_Stock_and_Per_Share_Inf
Common Stock and Per Share Information | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Common Stock and Earnings Per Share | ' | |||||||||||
Common Stock and Per Share Information | ||||||||||||
The following table reconciles the numerators and denominators used in the calculations of basic and diluted EPS for each of the last three fiscal years: | ||||||||||||
(In millions, except shares) | 2014 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Numerator for both basic and diluted EPS, net earnings (loss) | $ | (22.1 | ) | $ | 68.2 | $ | 75.2 | |||||
Denominator: | ||||||||||||
Denominator for basic EPS, weighted-average common shares outstanding | 58,955,487 | 58,425,522 | 58,171,472 | |||||||||
Potentially dilutive shares resulting from stock plans | — | 418,992 | 285,404 | |||||||||
Denominator for diluted EPS | 58,955,487 | 58,844,514 | 58,456,876 | |||||||||
Equity awards of 2,779,782 shares, 1,953,450 shares and 1,917,060 shares of common stock were excluded from the denominator for the computation of diluted earnings per share for the fiscal years ended May 31, 2014, June 1, 2013, and June 2, 2012, respectively, because they were anti-dilutive. The company has certain share-based payment awards that meet the definition of participating securities. The company has evaluated the impact on EPS of all participating securities under the two-class method, noting the impact on EPS was immaterial. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | ' | |||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||
The company utilizes equity-based compensation incentives as a component of its employee and non-employee director and officer compensation philosophy. Currently, these incentives consist principally of stock options, restricted stock, restricted stock units and performance share units. The company also offers a stock purchase plan for its domestic and certain international employees. The company issues shares in connection with its share-based compensation plans from authorized, but unissued, shares. | ||||||||||||||||||||||
Valuation and Expense Information | ||||||||||||||||||||||
The company measures the cost of employee services received in exchange for an award of equity instruments based on their grant-date fair market value. This cost is recognized over the requisite service period. | ||||||||||||||||||||||
Certain of the company's equity-based compensation awards contain provisions that allow for continued vesting into retirement. Stock-based awards are considered fully vested for expense attribution purposes when the employee's retention of the award is no longer contingent on providing subsequent service. | ||||||||||||||||||||||
The company classifies pre-tax stock-based compensation expense primarily within “Operating expenses” in the Consolidated Statements of Comprehensive Income. Related expenses charged to “Cost of sales” are not material. Pre-tax compensation expense and the related income tax benefit for all types of stock-based programs was as follows for the periods indicated: | ||||||||||||||||||||||
(In millions) | 31-May-14 | 1-Jun-13 | 2-Jun-12 | |||||||||||||||||||
Employee stock purchase program | $ | 0.3 | $ | 0.3 | $ | 0.3 | ||||||||||||||||
Stock option plans | 2.3 | 3.6 | 2.8 | |||||||||||||||||||
Restricted stock grants | 0.2 | 0.3 | 0.5 | |||||||||||||||||||
Restricted stock units | 5.2 | 3.2 | 2.4 | |||||||||||||||||||
Performance share units | 3 | 0.7 | — | |||||||||||||||||||
Total | $ | 11 | $ | 8.1 | $ | 6 | ||||||||||||||||
Tax benefit | $ | 4 | $ | 2.9 | $ | 2.1 | ||||||||||||||||
As of May 31, 2014, total pre-tax stock-based compensation cost not yet recognized related to non-vested awards was approximately $9.1 million. The weighted-average period over which this amount is expected to be recognized is 1.49 years. | ||||||||||||||||||||||
The company estimated the fair value of employee stock options on the date of grant using the Black-Scholes model. In determining these values, the following weighted-average assumptions were used for the options granted during the fiscal years indicated. | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Risk-free interest rates (1) | 1.62 | % | 0.77 | % | 1.75 | % | ||||||||||||||||
Expected term of options (2) | 5.5 years | 5.5 years | 5.5 years | |||||||||||||||||||
Expected volatility (3) | 46 | % | 47 | % | 42 | % | ||||||||||||||||
Dividend yield (4) | 1.74 | % | 1.98 | % | 0.34 | % | ||||||||||||||||
Weighted-average grant-date fair value of stock options: | ||||||||||||||||||||||
Granted with exercise prices equal to the fair market value of the stock on the date of grant | $ | 10.68 | $ | 6.52 | $ | 10.15 | ||||||||||||||||
(1) Represents the U.S. Treasury yield over the same period as the expected option term. | ||||||||||||||||||||||
(2) Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. | ||||||||||||||||||||||
(3) Amount is determined based on analysis of historical price volatility of the company's common stock over a period equal to the expected term of the options. | ||||||||||||||||||||||
(4) Represents the company's estimated cash dividend yield over the expected term of options. | ||||||||||||||||||||||
Stock-based compensation expense recognized in the Consolidated Statements of Comprehensive Income, has been reduced for estimated forfeitures, as it is based on awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. | ||||||||||||||||||||||
Employee Stock Purchase Program | ||||||||||||||||||||||
Under the terms of the company's Employee Stock Purchase Plan, 4 million shares of authorized common stock were reserved for purchase by plan participants at 85 percent of the market price. | ||||||||||||||||||||||
Stock Option Plans | ||||||||||||||||||||||
The company has stock option plans under which options to purchase the company's stock are granted to employees and non-employee directors and officers at a price not less than the market price of the company's common stock on the date of grant. Under the current award program, all options become exercisable between one and three years from date of grant and expire two to ten years from date of grant. Most options are subject to graded vesting with the related compensation expense recognized on a straight-line basis over the requisite service period. At May 31, 2014, there were 2.3 million shares available for option awards. | ||||||||||||||||||||||
The following is a summary of the transactions under the company's stock option plans: | ||||||||||||||||||||||
Shares Under Option | Weighted-Average Exercise Prices | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||
Outstanding at May 28, 2011 | 2,578,590 | $ | 24.62 | 5.5 | $ | 6.6 | ||||||||||||||||
Granted at market | 365,141 | $ | 25.75 | |||||||||||||||||||
Exercised | (215,524 | ) | $ | 19.74 | ||||||||||||||||||
Forfeited or expired | (398,958 | ) | $ | 25.76 | ||||||||||||||||||
Outstanding at June 2, 2012 | 2,329,249 | $ | 25.06 | 5.7 | $ | 0.9 | ||||||||||||||||
Granted at market | 499,870 | $ | 18.17 | |||||||||||||||||||
Exercised | (297,255 | ) | $ | 17.49 | ||||||||||||||||||
Forfeited or expired | (120,490 | ) | $ | 24.56 | ||||||||||||||||||
Outstanding at June 1, 2013 | 2,411,374 | $ | 24.59 | 5.7 | $ | 11.2 | ||||||||||||||||
Granted at market | 46,829 | $ | 28.74 | |||||||||||||||||||
Exercised | (821,050 | ) | $ | 22.97 | ||||||||||||||||||
Forfeited or expired | (40,169 | ) | $ | 27.47 | ||||||||||||||||||
Outstanding at May 31, 2014 | 1,596,984 | $ | 25.47 | 4.7 | $ | 9.9 | ||||||||||||||||
Ending vested + expected to vest | 1,588,824 | $ | 25.49 | 4.6 | $ | 9.8 | ||||||||||||||||
Exercisable at end of period | 1,122,446 | $ | 27.35 | 3.3 | $ | 5.1 | ||||||||||||||||
The total pre-tax intrinsic value of options exercised during fiscal 2014, 2013 and 2012 was $6.2 million, $2.0 million, and $1.1 million, respectively. The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the company's closing stock price as of the end of the period presented, which would have been received by the option holders had all option holders exercised in-the-money options as of that date. | ||||||||||||||||||||||
The following is a summary of stock options outstanding at May 31, 2014: | ||||||||||||||||||||||
Outstanding Stock Options | Exercisable Stock Options | |||||||||||||||||||||
Range of Exercise Price | Shares | Weighted-Average Remaining Contractual Term (Years) | Weighted-Average Exercise Prices | Shares | Weighted-Average Exercise Prices | |||||||||||||||||
$12.33-18.17 | 553,690 | 7.1 | $ | 17.18 | 238,880 | $ | 15.87 | |||||||||||||||
$25.06-30.54 | 627,041 | 4.3 | $ | 27.9 | 467,313 | $ | 28.33 | |||||||||||||||
$31.84-38.13 | 416,253 | 2 | $ | 32.85 | 416,253 | $ | 32.85 | |||||||||||||||
1,596,984 | 4.7 | $ | 25.47 | 1,122,446 | $ | 27.35 | ||||||||||||||||
Restricted Stock Grants | ||||||||||||||||||||||
The company periodically grants restricted common stock to certain key employees. Shares are granted in the name of the employee, who has all the rights of a shareholder, subject to certain restrictions on transferability and risk of forfeiture. The grants are subject to either cliff-based or graded vesting over a period not exceeding five years, and are subject to forfeiture if the employee ceases to be employed by the company for certain reasons. After the vesting period, the risk of forfeiture and restrictions on transferability lapse. The company recognizes the related compensation expense on a straight-line basis over the requisite service period. A summary of shares subject to restrictions are as follows: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | |||||||||||||||||
Outstanding, at beginning of year | 67,474 | $ | 20.45 | 83,331 | $ | 19.49 | 70,595 | $ | 18.44 | |||||||||||||
Granted | — | $ | — | — | $ | — | 24,323 | $ | 21.46 | |||||||||||||
Vested | (3,440 | ) | $ | 15.82 | (14,357 | ) | $ | 15.06 | (7,787 | ) | $ | 17.56 | ||||||||||
Forfeited or expired | (2,000 | ) | $ | 21.98 | (1,500 | ) | $ | 18.71 | (3,800 | ) | $ | 16.44 | ||||||||||
Outstanding, at end of year | 62,034 | $ | 20.66 | 67,474 | $ | 20.45 | 83,331 | $ | 19.49 | |||||||||||||
The weighted-average remaining recognition period of the outstanding restricted stock grants at May 31, 2014, was 1.65 years. The fair value of the shares that vested during the twelve months ended May 31, 2014, was $0.1 million. | ||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||
The company grants restricted stock units to certain key employees. This program provides that the actual number of restricted stock units awarded is based on the value of a portion of the participant's long-term incentive compensation divided by the fair value of the company's stock on the date of grant. In some years the awards have been partially tied to the company's financial performance for the year in which the grant was based. The awards generally cliff-vest after a three-year service period, with prorated vesting under certain circumstances and full or partial accelerated vesting upon retirement. Each restricted stock unit represents one equivalent share of the company's common stock to be awarded, free of restrictions, after the vesting period. Compensation expense related to these awards is recognized over the requisite service period, which includes any applicable performance period. Dividend equivalent awards are credited quarterly. The units do not entitle participants to the rights of stockholders of common stock, such as voting rights, until shares are issued after vesting. | ||||||||||||||||||||||
The following is a summary of restricted stock unit transactions for the fiscal years indicated: | ||||||||||||||||||||||
Share | Weighted Average | Aggregate Intrinsic Value in Millions | Weighted-Average | |||||||||||||||||||
Units | Grant-Date | Remaining Contractual | ||||||||||||||||||||
Fair Value | Term (Years) | |||||||||||||||||||||
Outstanding at May 28, 2011 | 285,101 | $ | 21.72 | $ | 6.9 | 1.5 | ||||||||||||||||
Granted | 125,589 | $ | 25.72 | |||||||||||||||||||
Forfeited | (10,483 | ) | $ | 25.13 | ||||||||||||||||||
Released | (78,484 | ) | $ | 26.56 | ||||||||||||||||||
Outstanding at June 2, 2012 | 321,723 | $ | 21.06 | $ | 5.7 | 1.4 | ||||||||||||||||
Ending vested + expected to vest | 308,645 | $ | 5.4 | 1.4 | ||||||||||||||||||
Outstanding at June 2, 2012 | 321,723 | $ | 21.06 | $ | 5.7 | 1.4 | ||||||||||||||||
Granted | 341,534 | $ | 20.49 | |||||||||||||||||||
Forfeited | (66,368 | ) | $ | 19 | ||||||||||||||||||
Released | (17,569 | ) | $ | 16.14 | ||||||||||||||||||
Outstanding at June 1, 2013 | 579,320 | $ | 21.35 | $ | 16 | 1.7 | ||||||||||||||||
Ending vested + expected to vest | 547,093 | $ | 15 | 1.6 | ||||||||||||||||||
Outstanding at June 1, 2013 | 579,320 | $ | 21.35 | $ | 16 | 1.7 | ||||||||||||||||
Granted | 142,004 | $ | 28.55 | |||||||||||||||||||
Forfeited | (10,124 | ) | $ | 22.94 | ||||||||||||||||||
Released | (145,094 | ) | $ | 20.3 | ||||||||||||||||||
Outstanding at May 31, 2014 | 566,106 | $ | 23.31 | $ | 17.2 | 1.5 | ||||||||||||||||
Ending vested + expected to vest | 550,322 | $ | 16 | 1.5 | ||||||||||||||||||
The weighted-average remaining recognition period of the outstanding restricted stock units at May 31, 2014, was 1.35 years. The fair value of the share units that vested during the twelve months ended May 31, 2014, was $4.1 million. | ||||||||||||||||||||||
Performance Share Units | ||||||||||||||||||||||
The company grants performance share units to certain key employees. The number of units initially awarded was based on the value of a portion of the participant's long-term incentive compensation, divided by the fair value of the company's common stock on the date of grant. Each unit represents one equivalent share of the company's common stock. The number of common shares ultimately issued in connection with these performance share units is determined based on the company's financial performance over the related three-year service period. Compensation expense is determined based on the grant-date fair value and the number of common shares projected to be issued, and is recognized over the requisite service period. | ||||||||||||||||||||||
The following is a summary of performance share unit transactions for the fiscal years indicated: | ||||||||||||||||||||||
Share | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic | Weighted-Average | |||||||||||||||||||
Units | Value in Millions | Remaining Contractual | ||||||||||||||||||||
Term (Years) | ||||||||||||||||||||||
Outstanding at May 28, 2011 | 90,380 | $ | 25.52 | $ | — | 0.2 | ||||||||||||||||
Granted | — | $ | — | |||||||||||||||||||
Forfeited | (90,380 | ) | $ | 25.52 | ||||||||||||||||||
Outstanding at June 2, 2012 | — | $ | — | $ | — | 0 | ||||||||||||||||
Ending vested + expected to vest | — | $ | — | 0 | ||||||||||||||||||
Outstanding at June 2, 2012 | — | $ | — | $ | — | 0 | ||||||||||||||||
Granted | 72,500 | $ | 17.1 | |||||||||||||||||||
Forfeited | — | $ | — | |||||||||||||||||||
Outstanding at June 1, 2013 | 72,500 | $ | 17.1 | $ | 2 | 2.1 | ||||||||||||||||
Ending vested + expected to vest | 68,823 | $ | 1.9 | 2.1 | ||||||||||||||||||
Outstanding at June 1, 2013 | 72,500 | $ | 17.1 | $ | 2 | 2.1 | ||||||||||||||||
Granted | 139,722 | $ | 31.66 | |||||||||||||||||||
Forfeited | (2,026 | ) | $ | 31.74 | ||||||||||||||||||
Outstanding at May 31, 2014 | 210,196 | $ | 26.64 | $ | 6.6 | 1.8 | ||||||||||||||||
Ending vested + expected to vest | 203,752 | $ | 6.4 | 1.8 | ||||||||||||||||||
The weighted-average remaining recognition period of the outstanding performance share units at May 31, 2014, was 1.46 years. The fair value for shares that vested during the twelve months ended May 31, 2014, was zero. | ||||||||||||||||||||||
Deferred Compensation Plans | ||||||||||||||||||||||
In 2008, the company discontinued use of the existing Non-qualified Deferred Compensation Plan for new contributions and established the Herman Miller, Inc. Executive Equalization Retirement Plan. | ||||||||||||||||||||||
The Non-qualified Deferred Compensation Plan allowed selected employees to defer part or all of their executive incentive cash bonus payment each year. The company could make a matching contribution of 30 percent of the executive's contribution up to 50 percent of the deferred cash incentive bonus. The company's matching contribution vested at the rate of 33 1/3 percent annually. In accordance with the terms of the plan, the executive deferral and company matching contribution were placed in a “Rabbi” trust, which invested solely in the company's common stock. Rabbi trust arrangements offer the executive a degree of assurance for ultimate payment of benefits without causing constructive receipt for income tax purposes. Distributions to the executive from the Rabbi trust can only be made in the form of the company's common stock. The assets in the Rabbi trust remain subject to the claims of creditors of the company and are not the property of the executive and are, therefore, included as a separate component of stockholders' equity under the caption "Key Executive Deferred Compensation" in the Consolidated Balance Sheets. Shares associated with the Non-qualified Deferred Compensation Plan are included in the denominator for both basic and diluted EPS. | ||||||||||||||||||||||
The Herman Miller, Inc. Executive Equalization Retirement Plan is a supplemental deferred compensation plan and was made available for salary deferrals and company contributions beginning in January 2008. The plan is available to a select group of management or highly compensated employees who are selected for participation by the Executive Compensation Committee of the Board of Directors. The plan allows participants to defer up to 50 percent of their base salary and up to 100 percent of their incentive cash bonus. Company contributions to the plan “mirror” the amounts the company would have contributed to the various qualified retirement plans had the employee's compensation not been above the IRS statutory ceiling ($260,000 in 2014). The company does not guarantee a rate of return for these funds. Instead, participants make investment elections for their deferrals and company contributions. Investment options are the same as those available under the Herman Miller Profit Sharing and 401(k) Plan, except for company stock, which is not an investment option under this plan. | ||||||||||||||||||||||
In accordance with the terms of the Executive Equalization Plan, the salary and bonus deferrals and company contributions have been placed in a Rabbi trust. The assets in the Rabbi trust remain subject to the claims of creditors of the company and are not the property of the participant and are, therefore, included as an asset on the company's Consolidated Balance Sheets within the "Other assets" line item. A liability of the same amount is recorded on the Consolidated Balance Sheets within the "Other liabilities" line item. Investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized within the company's Consolidated Statements of Comprehensive Income in the interest and other investment income line item. The associated changes to the liability are recorded as compensation expense within the "Selling, general and administrative" line item within the company's Consolidated Statements of Comprehensive Income. The net effect of any change to the asset and corresponding liability is offset and has no impact on the Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||||
Director Fees | ||||||||||||||||||||||
Company directors may elect to receive their director fees in one or more of the following forms: cash, deferred compensation in the form of shares or other selected investment funds, unrestricted company stock at the market value at the date of election, or stock options that vest in one year and expire in ten years. The exercise price of the stock options granted may not be less than the market price of the company's common stock on the date of grant. Under the plan, the Board members received the following shares or options in the fiscal years indicated: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Options | — | — | — | |||||||||||||||||||
Shares of common stock | 12,358 | 15,746 | 18,119 | |||||||||||||||||||
Shares through the deferred compensation program | 2,317 | 2,779 | 3,301 | |||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure | ' | ||||||||||||
Income Taxes | |||||||||||||
The components of earnings (loss) before income taxes are as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (45.1 | ) | $ | 89.9 | $ | 107.6 | ||||||
Foreign | 1.7 | 7.3 | 11.9 | ||||||||||
Total | $ | (43.4 | ) | $ | 97.2 | $ | 119.5 | ||||||
The provision (benefit) for income taxes consists of the following: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Current: Domestic - Federal | $ | 22.2 | $ | 36.4 | $ | 21.8 | |||||||
Domestic - State | 4.6 | 5.2 | 2 | ||||||||||
Foreign | 4.8 | 3.9 | 6 | ||||||||||
31.6 | 45.5 | 29.8 | |||||||||||
Deferred: Domestic - Federal | (43.6 | ) | (14.9 | ) | 11.2 | ||||||||
Domestic - State | (5.6 | ) | (1.4 | ) | 1.4 | ||||||||
Foreign | (3.6 | ) | (0.3 | ) | 1.9 | ||||||||
(52.8 | ) | (16.6 | ) | 14.5 | |||||||||
Total income tax provision | $ | (21.2 | ) | $ | 28.9 | $ | 44.3 | ||||||
The following table represents a reconciliation of income taxes at the United States statutory rate with the effective tax rate as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Income taxes computed at the United States Statutory rate of 35% | $ | (15.2 | ) | $ | 34 | $ | 41.8 | ||||||
Increase (decrease) in taxes resulting from: | |||||||||||||
Change in unrecognized tax benefits | 0.4 | 0.1 | (0.3 | ) | |||||||||
Foreign statutory rate differences | (0.9 | ) | (1.9 | ) | (1.2 | ) | |||||||
Meals and entertainment | 1 | 0.8 | 0.8 | ||||||||||
Manufacturing deduction under the American Jobs Creation Act of 2004 | (3.9 | ) | (4.0 | ) | (2.9 | ) | |||||||
State taxes | (0.9 | ) | 2.5 | 3 | |||||||||
Repatriated earnings and related foreign tax credits | (0.3 | ) | (0.6 | ) | (0.2 | ) | |||||||
Other, net | (1.4 | ) | (2.0 | ) | 3.3 | ||||||||
Income tax expense (benefit) | $ | (21.2 | ) | $ | 28.9 | $ | 44.3 | ||||||
Effective tax rate | 48.9 | % | 29.8 | % | 37.1 | % | |||||||
The tax effects and types of temporary differences that give rise to significant components of the deferred tax assets and liabilities at May 31, 2014 and June 1, 2013, are as follows: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Compensation-related accruals | $ | 19.5 | $ | 17.7 | |||||||||
Accrued pension and post-retirement benefit obligations | 9.7 | 19.4 | |||||||||||
Inventory related | 3.7 | 2.7 | |||||||||||
Reserves for uncollectible accounts and notes receivable | 1.5 | 1.8 | |||||||||||
Other reserves and accruals | 4.6 | 3.9 | |||||||||||
Warranty | 8.5 | 8.2 | |||||||||||
State and local tax net operating loss carryforwards | 3.2 | 3 | |||||||||||
Federal net operating loss carryforward | 0.1 | 0.2 | |||||||||||
State credits | 0.2 | 0.6 | |||||||||||
Foreign tax net operating loss carryforwards | 9.9 | 9.2 | |||||||||||
Foreign tax credits | 0.1 | 0.1 | |||||||||||
Foreign capital loss carryforward | 0.1 | 0.1 | |||||||||||
Financing costs | 1.2 | 2.1 | |||||||||||
Other | 3.4 | 3.6 | |||||||||||
Subtotal | 65.7 | 72.6 | |||||||||||
Valuation allowance | (8.5 | ) | (9.9 | ) | |||||||||
Total | $ | 57.2 | $ | 62.7 | |||||||||
Deferred tax liabilities: | |||||||||||||
Book basis in property in excess of tax basis | $ | (14.7 | ) | $ | (16.5 | ) | |||||||
Intangible assets | (18.1 | ) | (20.5 | ) | |||||||||
Other | (2.4 | ) | (2.9 | ) | |||||||||
Total | $ | (35.2 | ) | $ | (39.9 | ) | |||||||
The future tax benefits of net operating loss (NOL) carry-forwards and foreign tax credits are recognized to the extent that realization of these benefits is considered more likely than not. The company bases this determination on the expectation that related operations will be sufficiently profitable or various tax planning strategies will enable the company to utilize the NOL carry-forwards and/or foreign tax credits. To the extent that available evidence about the future raises doubt about the realization of these tax benefits, a valuation allowance is established. | |||||||||||||
At May 31, 2014, the company had state and local tax NOL carry-forwards of $49.0 million, the tax benefit of which is $3.2 million, which have various expiration periods from one to twenty-one years. The company also had state credits with a tax benefit of $0.2 million which expire in one to two years. For financial statement purposes, the NOL carry-forwards and state tax credits have been recognized as deferred tax assets, subject to a valuation allowance of $1.7 million. | |||||||||||||
At May 31, 2014, the company had a federal NOL carry-forward of $0.3 million, the tax benefit of which is $0.1 million, which expires in fourteen years. For financial statement purposes, the NOL carry-forward has been recognized as a deferred tax asset. | |||||||||||||
At May 31, 2014, the company had a foreign capital loss carry-forward of $0.3 million, the tax benefit of which is $0.1 million, which has an expiration period of an unlimited term. For financial statement purposes, the capital loss carry-forward has been recognized as a deferred tax asset, subject to a valuation allowance of $0.1 million. | |||||||||||||
At May 31, 2014, the company had foreign net operating loss carry-forwards of $41.1 million, the tax benefit of which is $9.9 million, which have expiration periods from five years to an unlimited term. The company also had foreign tax credits with a tax benefit of $0.1 million which expire in two to six years. For financial statement purposes, NOL carry-forwards and foreign tax credits have been recognized as deferred tax assets, subject to a valuation allowance of $5.4 million. | |||||||||||||
At May 31, 2014, the company had foreign deferred assets of $6.5 million, the tax benefit of which is $1.3 million, which is primarily related to financing costs. For financial statement purposes, the assets have been recognized as deferred tax assets, subject to a valuation allowance of $1.3 million. | |||||||||||||
The company has not provided for United States income taxes on undistributed earnings of foreign subsidiaries totaling approximately $67.5 million. Recording deferred income taxes on these undistributed earnings is not required, because these earnings have been deemed to be permanently reinvested. These amounts would be subject to possible U.S. taxation only if remitted as dividends. The determination of the hypothetical amount of unrecognized deferred U.S. taxes on undistributed earnings of foreign entities is not practicable. | |||||||||||||
The components of the company's unrecognized tax benefits are as follows: | |||||||||||||
(In millions) | |||||||||||||
Balance at June 2, 2012 | $ | 1.3 | |||||||||||
Increases related to current year income tax positions | 0.4 | ||||||||||||
Increases related to prior year income tax positions | — | ||||||||||||
Decreases related to prior year income tax positions | (0.1 | ) | |||||||||||
Decreases related to lapse of applicable statute of limitations | (0.2 | ) | |||||||||||
Decreases related to settlements | — | ||||||||||||
Balance at June 1, 2013 | 1.4 | ||||||||||||
Increases related to current year income tax positions | 0.5 | ||||||||||||
Increases related to prior year income tax positions | — | ||||||||||||
Decreases related to prior year income tax positions | — | ||||||||||||
Decreases related to lapse of applicable statute of limitations | (0.1 | ) | |||||||||||
Decreases related to settlements | — | ||||||||||||
Balance at May 31, 2014 | $ | 1.8 | |||||||||||
The company's effective tax rate would have been affected by the total amount of unrecognized tax benefits had this amount been recognized as a reduction to income tax expense. | |||||||||||||
The company recognizes interest and penalties related to unrecognized tax benefits through "Income tax expense (benefit)" in its Consolidated Statements of Comprehensive Income. Interest and penalties and the related liability were as follows for the periods indicated: | |||||||||||||
(In millions) | May 31, 2014 | June 1, 2013 | June 2, 2012 | ||||||||||
Interest and penalty expense | $ | 0.2 | $ | — | $ | — | |||||||
Liability for interest and penalties | $ | 0.6 | $ | 0.4 | |||||||||
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 12 months as a result of new positions that may be taken on income tax returns, settlement of tax positions and the closing of statutes of limitation. It is not expected that any of the changes will be material to the company's Consolidated Statements of Comprehensive Income. | |||||||||||||
During the year, the company has closed the audit of fiscal year 2013 with the Internal Revenue Service under the Compliance Assurance Process (CAP). For the majority of the remaining tax jurisdictions, the company is no longer subject to state and local, or non-U.S. income tax examinations by tax authorities for fiscal years before 2011. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The company's financial instruments consist of cash equivalents, marketable securities, accounts and notes receivable, deferred compensation plan, accounts payable, debt, and foreign currency exchange contracts. The company's estimates of fair value for financial instruments, other than marketable securities, approximate their carrying amounts as of May 31, 2014 and June 1, 2013. 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) | 31-May-14 | 1-Jun-13 | |||||||||||||||
Carrying value | $ | 250 | $ | 250 | |||||||||||||
Fair value | $ | 279.2 | $ | 283.5 | |||||||||||||
The following describes the methods the company uses to estimate the fair value of financial assets and liabilities, of which there have been no significant changes in the current period: | |||||||||||||||||
Available-for-sale securities — The company's available-for-sale marketable securities primarily include government obligations and mortgage-backed securities and are valued 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 current market-based activity. | |||||||||||||||||
Deferred compensation plan assets — The company's deferred compensation plan assets primarily include domestic equity large cap and lifestyle mutual funds and are valued using quoted prices for similar securities. | |||||||||||||||||
The following tables set forth financial assets and liabilities measured at fair value in the Consolidated Balance Sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of May 31, 2014 and June 1, 2013: | |||||||||||||||||
(In millions) | Fair Value Measurements | ||||||||||||||||
May 31, 2014 | June 1, 2013 | ||||||||||||||||
Financial Assets | Quoted Prices With Other Observable Inputs | Quoted Prices With Other Observable Inputs | |||||||||||||||
(Level 2) | (Level 2) | ||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||
Asset-backed securities | $ | 0.4 | $ | 0.8 | |||||||||||||
Corporate debt securities | 1.2 | 1.7 | |||||||||||||||
Government obligations | 7.9 | 5.1 | |||||||||||||||
Mortgage-backed securities | 1.6 | 3.2 | |||||||||||||||
Foreign currency forward contracts | 0.2 | 0.3 | |||||||||||||||
Deferred compensation plan | 6.3 | 4.8 | |||||||||||||||
Total | $ | 17.6 | $ | 15.9 | |||||||||||||
Financial Liabilities | |||||||||||||||||
Foreign currency forward contracts | $ | 0.1 | $ | 0.3 | |||||||||||||
Total | $ | 0.1 | $ | 0.3 | |||||||||||||
The following is a summary of the carrying and market values of the company's marketable securities as of the dates indicated: | |||||||||||||||||
May 31, 2014 | |||||||||||||||||
(In millions) | Cost | Unrealized Gain | Unrealized Loss | Market Value | |||||||||||||
Asset-backed securities | $ | 0.4 | $ | — | $ | — | $ | 0.4 | |||||||||
Corporate debt securities | 1.2 | — | — | 1.2 | |||||||||||||
Government obligations | 7.9 | — | — | 7.9 | |||||||||||||
Mortgage-backed securities | 1.6 | — | — | 1.6 | |||||||||||||
Total | $ | 11.1 | $ | — | $ | — | $ | 11.1 | |||||||||
1-Jun-13 | |||||||||||||||||
(In millions) | Cost | Unrealized Gain | Unrealized Loss | Market Value | |||||||||||||
Asset-backed securities | $ | 0.8 | $ | — | $ | — | $ | 0.8 | |||||||||
Corporate debt securities | 1.7 | — | — | 1.7 | |||||||||||||
Government obligations | 5.1 | — | — | 5.1 | |||||||||||||
Mortgage-backed securities | 3.2 | — | — | 3.2 | |||||||||||||
Total | $ | 10.8 | $ | — | $ | — | $ | 10.8 | |||||||||
The company does not hold any Level 3 financial instruments. | |||||||||||||||||
Maturities of debt securities included in marketable securities as of May 31, 2014, are as follows: | |||||||||||||||||
(In millions) | Cost | Market | |||||||||||||||
Value | |||||||||||||||||
Due within one year | $ | 2.9 | $ | 2.9 | |||||||||||||
Due after one year through five years | 8.1 | 8.1 | |||||||||||||||
Due after five years | 0.1 | 0.1 | |||||||||||||||
Total | $ | 11.1 | $ | 11.1 | |||||||||||||
Supplemental_Disclosures_of_Ca
Supplemental Disclosures of Cash Flow Information | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Cash Flow, Supplemental Disclosures | ' | ||||||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||||
The following table presents the adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 37.8 | $ | 34.4 | $ | 34.4 | |||||||
Amortization expense | 4.6 | 3.1 | 2.8 | ||||||||||
Provision for losses on accounts receivable and notes receivable | 1 | 0.6 | 1.6 | ||||||||||
(Gain) Loss on sales of property and dealers | (1.7 | ) | 0.8 | 0.9 | |||||||||
Deferred income tax expense (benefit) | (52.8 | ) | (16.6 | ) | 14.5 | ||||||||
Pension expense | 115.4 | 31.9 | 8.8 | ||||||||||
Restructuring and impairment expenses | 26.2 | 1.2 | 5.4 | ||||||||||
Stock-based compensation | 11 | 8.1 | 6 | ||||||||||
Excess tax benefits from stock-based compensation | (1.1 | ) | (0.3 | ) | 0.1 | ||||||||
Other changes in long-term liabilities | (8.5 | ) | (9.2 | ) | (66.5 | ) | |||||||
Other | 1.5 | (2.9 | ) | (1.9 | ) | ||||||||
Changes in current assets and liabilities: | |||||||||||||
Decrease (increase) in assets: | |||||||||||||
Accounts receivable | (26.7 | ) | (7.7 | ) | 17.5 | ||||||||
Inventories | (2.2 | ) | (4.6 | ) | 0.2 | ||||||||
Prepaid expenses and other | (3.2 | ) | 9.3 | 2.7 | |||||||||
Increase (decrease) in liabilities: | |||||||||||||
Accounts payable | 2.6 | 6 | 4.8 | ||||||||||
Accrued liabilities | 8.3 | 14.2 | (16.4 | ) | |||||||||
Total changes in current assets and liabilities | (21.2 | ) | 17.2 | 8.8 | |||||||||
Total adjustments | $ | 112.2 | $ | 68.3 | $ | 14.9 | |||||||
Warranties_Guarantees_and_Cont
Warranties, Guarantees, and Contingencies | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments Contingencies and Guarantees | ' | ||||||||||||
Warranties, Guarantees, and Contingencies | |||||||||||||
Product Warranties | |||||||||||||
The company provides warranty coverage to the end-user for parts and labor on products sold. The standard length of warranty is 12 years, 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 various costs associated with the company's warranty program. General warranty reserves are based on historical claims experience and other currently available information and are periodically adjusted for business levels and other factors. Specific reserves are established once an issue is identified with the amounts for such reserves based on the estimated cost of correction. | |||||||||||||
Changes in the warranty reserve for the stated periods were as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Accrual balance, beginning | $ | 24.8 | $ | 22.2 | $ | 17 | |||||||
Accrual for warranty matters | 20.2 | 23.3 | 24.9 | ||||||||||
Change in estimate | — | — | 5 | ||||||||||
Settlements | (19.8 | ) | (20.7 | ) | (24.7 | ) | |||||||
Accrual balance, ending | $ | 25.2 | $ | 24.8 | $ | 22.2 | |||||||
Other Guarantees | |||||||||||||
The company is periodically required to provide performance bonds in order to conduct business with certain customers. These arrangements are common and generally have terms ranging between one and three years. The bonds are required to provide assurances to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. The performance bonds are provided by various bonding agencies and the company is ultimately liable for claims that may occur against them. As of May 31, 2014, the company had a maximum financial exposure related to performance bonds of approximately $7.5 million. 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 as of May 31, 2014 and June 1, 2013. | |||||||||||||
The company periodically enters into agreements in the normal course of business that may include indemnification clauses regarding patent/trademark infringement and service losses. Service losses represent all direct or consequential loss, liability, damages, costs and expenses incurred by the customer or others resulting from services rendered by the company, the dealer, or certain sub-contractors due to a proven negligent act. The company has no history of claims, nor is it aware of circumstances that would require it to perform under 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 as of May 31, 2014 and June 1, 2013. | |||||||||||||
The company has entered into standby letter of credit arrangements for the purpose of protecting various insurance companies against default on the payment of certain premiums and claims. A majority of these arrangements are related to the company's wholly-owned captive insurance company. As of May 31, 2014, the company had a maximum financial exposure from these insurance-related standby letters of credit of approximately $4.9 million. 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 as of May 31, 2014 and June 1, 2013. | |||||||||||||
Contingencies | |||||||||||||
The company leases a facility in the United Kingdom under an agreement that expired in June 2011 and the company is currently leasing the facility on a month to month basis. Under the terms of the lease, the company is required to perform the maintenance and repairs necessary to address the general dilapidation of the facility over the lease term. The ultimate cost of this provision to the company is dependent on a number of factors including, but not limited to, the future use of the facility by the lessor and whether the company chooses and is permitted to renew the lease term. The company has estimated the cost of these maintenance and repairs to be between $0 million and $3.0 million, depending on the outcome of future plans and negotiations. Based on existing circumstances, it is estimated that these costs will most likely approximate $1.5 million as of May 31, 2014, and was estimated to be $1.3 million as of June 1, 2013. As a result, these amounts have been recorded as a liability reflected under the caption “Accrued liabilities” for fiscal 2014 and fiscal 2013 in the Consolidated Balance Sheets. | |||||||||||||
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. | |||||||||||||
As of the end of fiscal 2014, outstanding commitments for future purchase obligations approximated $54.2 million. | |||||||||||||
On July 25, 2014, the company's Nemschoff subsidiary received observations from an inspection by the Food and Drug Administration (“FDA”) at its manufacturing facility. The company will provide a written response to the FDA within 15 days of receipt of the observations. Following the written response the company will have discussions with the FDA District Office regarding the observations to further determine the scope and remedy for the observations. At this time no estimate of potential impact on the consolidated financial statements related to these observations can be made. |
Operating_Segments
Operating Segments | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Reporting Disclosure | ' | ||||||||||||
Operating Segments | |||||||||||||
The company's reportable segments consist of North American Furniture Solutions, ELA ("EMEA, Latin America, and Asia Pacific") Furniture Solutions, and Specialty and Consumer. The North American Furniture Solutions reportable 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 reportable segment. | |||||||||||||
During fiscal 2014, the company renamed its international reportable business segment ELA Furniture Solutions in order to better describe the geographic regions it serves, which include EMEA, Latin America, and Asia-Pacific. Prior to this name change, the company referred to this segment as "Non-North America." ELA Furniture Solutions includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in these aforementioned geographic regions. | |||||||||||||
The Specialty and Consumer reportable segment includes the operations associated with the design, manufacture, and sale of high-end furniture products including Geiger wood products, Maharam textiles, Herman Miller Collection products and the company's North American consumer business. | |||||||||||||
The company also reports a “Corporate” category consisting primarily of unallocated corporate expenses including restructuring and impairment costs. | |||||||||||||
The performance of the operating segments is evaluated by the company's management using various financial measures. The following is a summary of certain key financial measures for the respective fiscal years indicated: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Net Sales: | |||||||||||||
North American Furniture Solutions | $ | 1,216.30 | $ | 1,221.90 | $ | 1,218.50 | |||||||
ELA Furniture Solutions | 392.2 | 377.3 | 347.3 | ||||||||||
Specialty and Consumer | 273.5 | 175.7 | 158.3 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 1,882.00 | $ | 1,774.90 | $ | 1,724.10 | |||||||
Depreciation and Amortization: | |||||||||||||
North American Furniture Solutions | $ | 26.8 | $ | 28 | $ | 31.7 | |||||||
ELA Furniture Solutions | 7.6 | 6.6 | 3.7 | ||||||||||
Specialty and Consumer | 8 | 2.9 | 1.8 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 42.4 | $ | 37.5 | $ | 37.2 | |||||||
Operating Earnings (Losses): | |||||||||||||
North American Furniture Solutions | $ | (27.0 | ) | $ | 76.6 | $ | 96.9 | ||||||
ELA Furniture Solutions | 23.1 | 24.7 | 32.1 | ||||||||||
Specialty and Consumer | 4.6 | 15.4 | 15.1 | ||||||||||
Corporate | (26.4 | ) | (1.8 | ) | (6.5 | ) | |||||||
Total | $ | (25.7 | ) | $ | 114.9 | $ | 137.6 | ||||||
Capital Expenditures: | |||||||||||||
North American Furniture Solutions | $ | 28.9 | $ | 33.6 | $ | 20.3 | |||||||
ELA Furniture Solutions | 6.4 | 15.9 | 3.3 | ||||||||||
Specialty and Consumer | 5.5 | 0.7 | 4.9 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 40.8 | $ | 50.2 | $ | 28.5 | |||||||
Total Assets: | |||||||||||||
North American Furniture Solutions | $ | 457 | $ | 427.8 | $ | 389.2 | |||||||
ELA Furniture Solutions | 244.8 | 250.9 | 231.5 | ||||||||||
Specialty and Consumer | 176.5 | 174.3 | 36.5 | ||||||||||
Corporate | 112.6 | 93.5 | 181.9 | ||||||||||
Total | $ | 990.9 | $ | 946.5 | $ | 839.1 | |||||||
Goodwill: | |||||||||||||
North American Furniture Solutions | $ | 135.8 | $ | 136.1 | $ | 104.9 | |||||||
ELA Furniture Solutions | 42.6 | 41.1 | 40.5 | ||||||||||
Specialty and Consumer | 49.8 | 49.8 | 1 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 228.2 | $ | 227 | $ | 146.4 | |||||||
The accounting policies of the reportable operating segments are the same as those of the company. Additionally, the company employs a methodology for allocating corporate costs and assets with the underlying objective of this methodology being to allocate corporate costs according to the relative usage of the underlying resources and to allocate corporate assets according to the relative expected benefit. The majority of the allocations for corporate expenses are based on relative net sales. However, certain corporate costs, generally considered the result of isolated business decisions, are not subject to allocation and are evaluated separately from the rest of the regular ongoing business operations. For example, restructuring and impairment expenses that are reflected in operating earnings are allocated to the “Corporate” category. In addition, cash and cash equivalents and marketable securities are allocated to the “Corporate” category as the company views these as corporate assets. | |||||||||||||
The restructuring and asset impairment charges of $26.5 million, $1.2 million, and $5.4 million in fiscal 2014, fiscal 2013 and fiscal 2012, respectively are discussed in Note 16 of the Consolidated Financial Statements and were allocated to the “Corporate” category. | |||||||||||||
The company's product offerings consist primarily of office furniture systems, seating, freestanding furniture, storage and casegoods. These product offerings are marketed, distributed, and managed primarily as a group of similar products on an overall portfolio basis. The following is a summary of net sales by product category for the respective fiscal years indicated. Given that formal product line information is not available for the company as a whole, this summary is intended to represent a reasonable estimate of net sales by product category based on the best information available. | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Net Sales: | |||||||||||||
Systems | $ | 571.6 | $ | 572.9 | $ | 549.5 | |||||||
Seating | 658.2 | 609.8 | 619.8 | ||||||||||
Freestanding and storage | 386.4 | 395 | 334.3 | ||||||||||
Other (1) | 265.8 | 197.2 | 220.5 | ||||||||||
Total | $ | 1,882.00 | $ | 1,774.90 | $ | 1,724.10 | |||||||
(1) “Other” primarily consists of textiles or uncategorized product sales and service sales. | |||||||||||||
Sales by geographic area are based on the location of the customer. Long-lived assets consist of long-term assets of the company, excluding financial instruments, deferred tax assets, and long-term intangibles. The following is a summary of geographic information for the respective fiscal years indicated. Individual foreign country information is not provided as none of the individual foreign countries in which the company operates are considered material for separate disclosure based on quantitative and qualitative considerations. | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Net Sales: | |||||||||||||
United States | $ | 1,406.30 | $ | 1,291.50 | $ | 1,271.90 | |||||||
International | 475.7 | 483.4 | 452.2 | ||||||||||
Total | $ | 1,882.00 | $ | 1,774.90 | $ | 1,724.10 | |||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 177 | $ | 169.2 | $ | 146.4 | |||||||
International | 35.4 | 29.8 | 18.1 | ||||||||||
Total | $ | 212.4 | $ | 199 | $ | 164.5 | |||||||
It is estimated that no single dealer accounted for more than 5 percent of the company's net sales in the fiscal year ended May 31, 2014. It is also estimated that the largest single end-user customer, the U.S. federal government, accounted for approximately $102 million or 5 percent of the company's fiscal 2014 net sales. These sales are recorded within the North American Furniture Solutions reportable segment. | |||||||||||||
Approximately 8.0 percent of the company's employees are covered by collective bargaining agreements, most of whom are employees of its Nemschoff and Herman Miller Ningbo subsidiaries. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 12 Months Ended | |||||||||
31-May-14 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||
Comprehensive Income (Loss) Note | ' | |||||||||
Accumulated Other Comprehensive Loss | ||||||||||
The following table provides an analysis of the changes in accumulated other comprehensive loss for the years ended May 31, 2014 and June 1, 2013: | ||||||||||
Year Ended | ||||||||||
(In millions) | 31-May-14 | 1-Jun-13 | 2-Jun-12 | |||||||
Cumulative translation adjustments at beginning of period | (14.0 | ) | (13.0 | ) | (5.9 | ) | ||||
Translation adjustments | 2.9 | (1.0 | ) | (7.1 | ) | |||||
Balance at end of period | (11.1 | ) | (14.0 | ) | (13.0 | ) | ||||
Pension and other post-retirement benefit plans at beginning of period | (110.3 | ) | (127.6 | ) | (98.3 | ) | ||||
Adjustments to pension and other post-retirement benefit plans | (3.1 | ) | 0.5 | — | ||||||
Reclassification to earnings - cost of sales (net of tax $(15.8), $(1.0), $3.5) | 27.6 | 1.8 | (8.5 | ) | ||||||
Reclassification to earnings - operating expenses (net of tax $(35.1), $(7.8), $8.7) | 59 | 15 | (20.8 | ) | ||||||
Balance at end of period | (26.8 | ) | (110.3 | ) | (127.6 | ) | ||||
Total accumulated other comprehensive loss | (37.9 | ) | (124.3 | ) | (140.6 | ) |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Related Activities Disclosure | ' | ||||||||||||
Restructuring and Impairment Activities | |||||||||||||
2014 Restructuring and Impairment Charges | |||||||||||||
The company recognized asset impairment expenses totaling $21.4 million associated with the Nemschoff and POSH trade name intangibles for the fiscal year 2014. The company also recognized restructuring expenses of $1.1 million during the third quarter of fiscal 2014. This restructuring charge was related to actions taken to improve the efficiency of the North American sales and distribution channel and Geiger manufacturing operations. These actions focused primarily on targeted workforce reductions. | |||||||||||||
Due to the acquisition of a manufacturing and distribution operation in Dongguan, China in the second quarter of 2014, the company has decided not to pursue the construction of a new manufacturing and distribution facility on property that it previously acquired in Ningbo, China. In connection with this decision, the company evaluated the fair value of this property and recorded an asset impairment of $4.0 million during the second quarter. This impairment charge was recorded to the "Restructuring and impairment expenses" line item within the Consolidated Statements of Comprehensive Income. The impairment charge is included within the "Corporate" category within the segment reporting. | |||||||||||||
2012 Plan | |||||||||||||
In May 2012, the company announced a plan ("The 2012 Plan") to consolidate the Nemschoff manufacturing operations in Sheboygan, Wisconsin with the closure of the Sioux City, Iowa seating plant. The 2012 plan also included the consolidation of the Sheboygan manufacturing sites into one location. This plan reduced fixed costs and operating expenses in order to improve operating performance, profitability and further enhance productivity. This Plan reduced our workforce in North America, by approximately 70 employees. No additional restructuring expenses are anticipated in future periods for the 2012 Plan. | |||||||||||||
2012 Action Plan | |||||||||||||
(In millions) | Total Plan | Severance and Outplacement Costs | Building Impairment Costs | ||||||||||
Costs | |||||||||||||
Balance as of May 28, 2011 | $ | — | $ | — | $ | — | |||||||
Restructuring and impairment expenses | 1.6 | 0.2 | 1.4 | ||||||||||
Cash payments | (0.1 | ) | — | (0.1 | ) | ||||||||
Adjustments | (1.3 | ) | — | (1.3 | ) | ||||||||
Balance as of June 2, 2012 | 0.2 | 0.2 | — | ||||||||||
Restructuring and impairment expenses | 1.2 | 0.3 | 0.9 | ||||||||||
Cash payments | (1.0 | ) | (0.5 | ) | (0.5 | ) | |||||||
Adjustments | (0.2 | ) | — | (0.2 | ) | ||||||||
Balance as of June 1, 2013 | $ | 0.2 | $ | — | $ | 0.2 | |||||||
Cash payments | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | |||||
Balance as of May 31, 2014 | $ | — | $ | — | $ | — | |||||||
In addition to the restructuring expenses noted above, the company recorded an impairment of certain assets for fiscal 2012 totaling $3.8 million. These assets were related to products and trade names that we determined had no future revenue stream to the company. | |||||||||||||
These charges have been reflected separately as "Restructuring and impairment expenses" in the Consolidated Statements of Comprehensive Income. The impairment and restructuring charges described above are recorded in the "Restructuring and impairment expenses" line in the Consolidated Statements of Comprehensive Income and are included in the "Corporate" category within the segment reporting within Note 14 . |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||
Set forth below is a summary of the quarterly operating results on a consolidated basis for the years ended May 31, 2014, June 1, 2013, and June 2, 2012. | |||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | Net sales | $ | 468.1 | $ | 470.5 | $ | 455.9 | $ | 487.5 | ||||||||
Gross margin (1) | 170 | 118.9 | 162.9 | 179.1 | |||||||||||||
Net earnings (loss) | 22.5 | (80.6 | ) | 19.4 | 16.6 | ||||||||||||
Earnings (loss) per share-basic (1) | 0.38 | (1.37 | ) | 0.33 | 0.28 | ||||||||||||
Earnings (loss) per share-diluted (1) | 0.38 | (1.37 | ) | 0.33 | 0.28 | ||||||||||||
2013 | Net sales (1) | $ | 449.7 | $ | 441.8 | $ | 423.5 | $ | 460 | ||||||||
Gross Margin | 149.7 | 148.5 | 144.4 | 162.6 | |||||||||||||
Net earnings (1) | 20 | 8.4 | 16.5 | 23.4 | |||||||||||||
Earnings per share-basic (1) | 0.34 | 0.14 | 0.28 | 0.4 | |||||||||||||
Earnings per share-diluted | 0.34 | 0.14 | 0.28 | 0.4 | |||||||||||||
2012 | Net sales (1) | $ | 458.1 | $ | 445.6 | $ | 399.8 | $ | 420.7 | ||||||||
Gross margin (1) | 154.3 | 152.1 | 134.2 | 150.1 | |||||||||||||
Net earnings (1) | 24.6 | 23.7 | 14.9 | 11.9 | |||||||||||||
Earnings per share-basic (1) | 0.42 | 0.41 | 0.26 | 0.21 | |||||||||||||
Earnings per share-diluted | 0.42 | 0.41 | 0.26 | 0.2 | |||||||||||||
(1) The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
31-May-14 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Amendment and Restatement of Credit Facility | |
On July 21, 2014, the company entered into an amendment and restatement of an existing unsecured credit facility (the “Agreement”). The Agreement, which expires on July 21, 2019, provides the company with up to $250 million in revolving variable interest borrowing capacity. In addition, the Agreement 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 $125 million. Amounts borrowed under the Agreement are subject to variable rates of interest tied to a base rate (either Prime, LIBOR or U.S. Federal Funds) depending on the form of borrowing selected by the company. | |
Acquisition of Design Within Reach | |
On July 28, 2014, the company acquired the majority of the outstanding equity of Design Within Reach, Inc. ("DWR”), a Stamford, Connecticut-based, leading North American marketer and seller of modern furniture, lighting and accessories primarily serving consumers and design trade professionals. The Company acquired an ownership interest in DWR equal to approximately 83 percent, for $155 million in cash. An additional payment will be made to DWR public shareholders following their election to tender their shares in exchange for cash. The final cash purchase price will be subject to post-closing adjustments to be determined within 60 days of closing. As a result of the transaction, the Company estimates it will receive future tax benefits with a present value of approximately $10 million. The results of DWR will be included within a newly created "Consumer" reportable segment. This new segment will be comprised of DWR and the company's existing North American consumer business. The company financed the acquisition of DWR using a combination of existing cash and $127 million of borrowings on its available unsecured credit facility. The amount borrowed is subject to an initial rate of interest equal to 3.25% per annum. Immediately following this acquisition, the unused borrowing capacity available to the company under the unsecured credit facility totaled $112.4 million. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Schedule II Valuation and Qualifiying Accounts [Abstract] | ' | |||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ' | |||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(In millions) | ||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||
Description | Balance at beginning of period | Charges to expenses or net sales | Deductions (3) | Balance at end of period | ||||||||||||
Year ended May 31, 2014: | ||||||||||||||||
Accounts receivable allowances — uncollectible accounts(1) | $ | 3.9 | $ | 1 | $ | (1.5 | ) | $ | 3.4 | |||||||
Accounts Receivable allowances — credit memo(2) | $ | 0.5 | $ | 0.1 | $ | — | $ | 0.6 | ||||||||
Allowance for possible losses on notes receivable | $ | 0.2 | $ | — | $ | (0.1 | ) | $ | 0.1 | |||||||
Valuation allowance for deferred tax asset | $ | 9.9 | $ | (1.8 | ) | $ | 0.4 | $ | 8.5 | |||||||
Year ended June 1, 2013: | ||||||||||||||||
Accounts receivable allowances — uncollectible accounts(1) | $ | 4.1 | $ | 0.4 | $ | (0.6 | ) | $ | 3.9 | |||||||
Accounts Receivable allowances — credit memo(2) | $ | 0.3 | $ | 0.2 | $ | — | $ | 0.5 | ||||||||
Allowance for possible losses on notes receivable | $ | 0.2 | $ | — | $ | — | $ | 0.2 | ||||||||
Valuation allowance for deferred tax asset | $ | 10.3 | $ | (0.5 | ) | $ | 0.1 | $ | 9.9 | |||||||
Year ended June 2, 2012: | ||||||||||||||||
Accounts receivable allowances — uncollectible accounts(1) | $ | 4.1 | $ | 1.6 | $ | (1.6 | ) | $ | 4.1 | |||||||
Accounts receivable allowances — credit memo (2) | $ | 0.4 | $ | — | $ | (0.1 | ) | $ | 0.3 | |||||||
Allowance for possible losses on notes receivable | $ | 0.3 | $ | — | $ | (0.1 | ) | $ | 0.2 | |||||||
Valuation allowance for deferred tax asset | $ | 11.6 | $ | (0.7 | ) | $ | (0.6 | ) | $ | 10.3 | ||||||
(1) Activity under the “Charges to expense or net sales” column are recorded within selling, general and administrative expenses. | ||||||||||||||||
(2) Activity under the “Charges to expenses or net sales” column are recorded within net sales. | ||||||||||||||||
(3) Represents amounts written off, net of recoveries and other adjustments. Includes effects of foreign translation. |
Significant_Accounting_and_Rep1
Significant Accounting and Reporting Policies (Policies) | 12 Months Ended | ||||
31-May-14 | |||||
Accounting Policies [Abstract] | ' | ||||
Principles of Consolidation | ' | ||||
Principles of Consolidation | |||||
The Consolidated Financial Statements include the accounts of Herman Miller, Inc. and its majority-owned domestic and foreign subsidiaries. The consolidated entities are collectively referred to as “the company.” All intercompany accounts and transactions have been eliminated in the Consolidated Financial Statements. Nonconsolidated affiliates (20-50 percent owned companies) are accounted for using the equity method. | |||||
Fiscal Year | ' | ||||
Fiscal Year | |||||
The company's fiscal year ends on the Saturday closest to May 31. The fiscal years ended May 31, 2014 and June 1, 2013 each contain 52 weeks, while the fiscal year ended June 2, 2012 contains 53 weeks. An extra week in the company's fiscal year is required approximately every six years in order to realign its fiscal calendar-end dates with the actual calendar months. | |||||
Foreign Currency Translation | ' | ||||
Foreign Currency Translation | |||||
The functional currency for foreign subsidiaries is their local currency. The cumulative effects of translating the balance sheet accounts from the functional currency into the United States dollar using fiscal year-end exchange rates and translating revenue and expense accounts using average exchange rates for the period is reflected as a component of “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. The financial statement impact of remeasuring all foreign currency transactions into the appropriate functional currency resulted in a net loss of $1.2 million, $1.3 million and $1.3 million for the fiscal years ended May 31, 2014, June 1, 2013 and June 2, 2012, respectively. These amounts are included in “Other expenses (income)” in the Consolidated Statements of Comprehensive Income. | |||||
Cash Equivalents | ' | ||||
Cash Equivalents | |||||
The company holds cash equivalents as part of its cash management function. Cash equivalents include money market funds, time deposit investments, and treasury bills with original maturities of less than three months. The carrying value of cash equivalents, which approximates fair value, totaled $5.6 million and $5.9 million as of May 31, 2014 and June 1, 2013, respectively. All cash and cash equivalents are high-credit quality financial instruments, and the amount of credit exposure to any one financial institution or instrument is limited. | |||||
Marketable Securities | ' | ||||
Marketable Securities | |||||
The company maintains a portfolio of marketable securities primarily comprised of investment-grade, fixed-income securities. These investments are held by the company's wholly owned insurance captive and are considered “available-for-sale” securities. Accordingly, they have been recorded at fair value based on quoted market prices, with the resulting net unrealized holding gains or losses reflected net of tax as a component of “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. | |||||
All marketable security transactions are recognized on the trade date. Realized gains and losses on disposal of available-for-sale investments are included in “Interest and other investment income” in the Consolidated Statements of Comprehensive Income. See Note 11 of the Consolidated Financial Statements for additional disclosures of marketable securities. | |||||
Accounts Receivable Allowances | ' | ||||
Accounts Receivable Allowances | |||||
Reserves for uncollectible accounts receivable balances are based on known customer exposures, historical credit experience, and the specific identification of other potentially uncollectible accounts. Balances are written off against the reserve once the company determines the probability of collection to be remote. The company generally does not require collateral or other security on trade accounts receivable. | |||||
Concentrations of Credit Risk | ' | ||||
Concentrations of Credit Risk | |||||
Our trade receivables are primarily due from independent dealers who, in turn, carry receivables from their customers. We monitor and manage the credit risk associated with individual dealers and direct customers where applicable. Dealers are responsible for assessing and assuming credit risk of their customers and may require their customers to provide deposits, letters of credit or other credit enhancement measures. Some sales contracts are structured such that the customer payment or obligation is direct to us. In those cases, we may assume the credit risk. Whether from dealers or customers, our trade credit exposures are not concentrated with any particular entity. | |||||
Inventories | ' | ||||
Inventories | |||||
Inventories are valued at the lower of cost or market and include material, labor, and overhead. Inventory cost is determined using the last-in, first-out (LIFO) method at the manufacturing sites in Michigan, whereas inventories of the company's other subsidiaries are valued using the first-in, first-out (FIFO) method. The company establishes reserves for excess and obsolete inventory, based on prevailing circumstances and judgment for consideration of current events, such as economic conditions, that may affect inventory. The reserve required to record inventory at lower of cost or market may be adjusted in response to changing conditions. Further information on the company's recorded inventory balances can be found in Note 3 of the Consolidated Financial Statements. | |||||
Property, Equipment, and Depreciation | ' | ||||
Property, Equipment, and Depreciation | |||||
Property and equipment are stated at cost. The cost is depreciated over the estimated useful lives of the assets, using the straight-line method. Estimated useful lives range from 3 to 10 years for machinery and equipment and do not exceed 40 years for buildings. Leasehold improvements are depreciated over the lesser of the lease term or the useful life of the asset, not to exceed 10 years. We capitalize certain external and internal costs incurred in connection with the development, testing, and installation of software for internal use. Software for internal use is included in property and equipment and is depreciated over an estimated useful life not exceeding 5 years. Depreciation and amortization expense is included in the Consolidated Statements of Comprehensive Income in the "Cost of sales", "Selling, general and administrative" and "Design and research" line items. | |||||
Goodwill and Indefinite-Lived Intangible Assets | ' | ||||
Goodwill and Indefinite-lived Intangible Assets | |||||
The company performs an annual goodwill impairment test, by reporting unit, to determine whether the asset values are impaired. A reporting unit is defined as an operating segment or one level below an operating segment. | |||||
The company also evaluates its acquired intangible assets at acquisition to determine whether any have “indefinite useful lives.” Intangible assets with indefinite useful lives, are not subject to amortization. The company's indefinite-lived intangible assets consist of certain trade names valued at approximately $40.9 million and $62.3 million as of fiscal year 2014 and 2013, respectively. These assets have indefinite useful lives and are evaluated annually for impairment using the relief from royalty method. Inputs for the relief from royalty method include revenue forecasts, royalty rate and discount rate. The company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. | |||||
The company recognized asset impairment expenses totaling $21.4 million associated with the Nemschoff and POSH trade name intangibles for the fiscal year 2014. The Nemschoff and Posh trade name assets are included in the North American Furniture Solutions reportable segment and ELA Furniture Solutions segment, respectively. During the fiscal year 2012, the company also recorded impairment expenses of $3.8 million for the indefinite-lived intangible assets related to two healthcare trade names. These impairment expenses are recorded in the restructuring and impairment expense line in the Consolidated Statements of Comprehensive Income and are included in the "Corporate" category within the segment reporting and represent level 3 fair value measurements. | |||||
Long-Lived Assets - Indefinite | ' | ||||
Long-Lived Assets | |||||
The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or an asset group may not be recoverable. Each impairment test is based on a comparison of the carrying amount of the asset or asset group to the future undiscounted net cash flows expected to be generated by the asset or asset group or in some cases by prices for similar assets. If such assets are considered to be impaired, the impairment amount to be recognized is the amount by which the carrying value of the assets exceeds their fair value. | |||||
Impairment expense of $4.0 million was recording during fiscal 2014 related to property in Ningbo, China. This was due to the acquisition of manufacturing-related assets, including a production facility and related equipment, in Dongguan, China, and as a result, the company decided not to pursue the construction of a new manufacturing and distribution facility on the previously acquired property in Ningbo. The company evaluated the fair value of this property and recorded an asset impairment, equal to the excess of carrying value over fair value. During fiscal 2012, the company recorded an impairment expense of $1.4 million related to fixed assets in connection with the 2012 restructuring plan. Both of these impairment charges were recorded in "Restructuring and impairment expenses" and were classified in the "Corporate" category for segment reporting purposes and represent level 3 fair value measurements. | |||||
Amortizable intangible assets within "Other amortizable intangibles, net" in the Consolidated Balance Sheets consists primarily of patents, trademarks and customer relationships. The "customer relationships" intangible asset is comprised of relationships with customers and specifiers and networks and relationships with dealers and distributors. Refer to the following table for the combined gross carrying value and accumulated amortization for these amortizable intangibles. | |||||
Long-Lived Assets - Finite | ' | ||||
The company amortizes these assets over their remaining useful lives using the straight-line method over periods ranging from 5 to 20 years. It is estimated that the average remaining life of such patents and trademarks is approximately 5 years and 6 years, respectively. The estimated average remaining life of the customer relationships is 13 years. | |||||
Self Insurance | ' | ||||
Self-Insurance | |||||
The company is partially self-insured for general liability, workers' compensation, and certain employee health and dental benefits under insurance arrangements that provide for third-party coverage of claims exceeding the company's loss retention levels. The company's health benefits retention level does not include an aggregate stop loss policy. The company's retention levels designated within significant insurance arrangements as of May 31, 2014, are as follows: | |||||
(In millions) | Retention Level (per occurrence) | ||||
General liability and auto liability/physical damage | $ | 1 | |||
Workers' compensation and property | $ | 0.75 | |||
The company's policy is to accrue amounts equal to the actuarially-determined liabilities for loss and loss adjustment expenses, which are included in “Other liabilities” in the Consolidated Balance Sheets. The actuarial valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical costs, and changes in actual experience could cause these estimates to change. The general and workers' compensation liabilities are managed through the company's wholly-owned insurance captive. | |||||
Research, Development, and Other Related Costs | ' | ||||
Research, Development, and Other Related Costs | |||||
Research, development, pre-production, and start-up costs are expensed as incurred. Research and development (R&D) costs consist of expenditures incurred during the course of planned research and investigation aimed at discovery of new knowledge useful in developing new products or processes. R&D costs also include the significant enhancement of existing products or production processes and the implementation of such through design, testing of product alternatives, or construction of prototypes. Research and development costs included in “Design and research” expense in the accompanying Consolidated Statements of Comprehensive Income are $53.9 million, $48.3 million, and $41.0 million, in fiscal 2014, 2013, and 2012, respectively. | |||||
Royalty payments made to designers of the company's products as the products are sold are a variable cost based on product sales. These expenses totaled $12.0 million, $11.6 million, and $11.7 million in fiscal years 2014, 2013, and 2012 respectively. They are included in "Design and research" expense in the accompanying Consolidated Statements of Comprehensive Income | |||||
. | |||||
Customer Payments and Incentives | ' | ||||
Customer Payments and Incentives | |||||
We offer various sales incentive programs to our customers, such as rebates, discounts and cooperative advertising programs. Programs such as rebates and discounts are adjustments to the selling price and are therefore characterized as a reduction to net sales. The cooperative advertising program, whereby customers are reimbursed for company approved advertising expenditures, provides us with an identifiable benefit from the advertisement at a verifiable market rate. Therefore, the cost of the cooperative advertising program is recognized as an operating expense and is included in the "Selling, general and administrative" line in the Consolidated Statements of Comprehensive Income. We recognized operating expense related to our cooperative advertising program of $2.0 million for each of the fiscal years ended 2014, 2013, and 2012. | |||||
Revenue Recognition | ' | ||||
Revenue Recognition | |||||
The company recognizes revenue on sales through its network of independent contract furniture dealers and independent retailers once the related product is shipped and title passes. In situations where products are sold through subsidiary dealers or directly to the end customer, revenue is recognized once the related product is shipped to the end customer and installation, if applicable, is substantially complete. Offers such as rebates and discounts are recorded as reductions to net sales. Unearned revenue occurs during the normal course of business due to advance payments from customers for future delivery of products and services. | |||||
Shipping and Handling Expenses | ' | ||||
Shipping and Handling Expenses | |||||
The company records shipping and handling related expenses under the caption “Cost of sales” in the Consolidated Statements of Comprehensive Income. | |||||
Cost of Sales | ' | ||||
Cost of Sales | |||||
We include material, labor and overhead in cost of sales. Included within these categories are such items as freight charges, warehousing costs, internal transfer costs, and other costs of our distribution network. | |||||
Selling, General, and Administrative | ' | ||||
Selling, General, and Administrative | |||||
We include costs not directly related to the manufacturing of our products in the "Selling, general, and administrative" line within the Consolidated Statements of Comprehensive Income. Included in these expenses are items such as compensation expense, rental expense, royalty expense, warranty expense, and travel and entertainment expense. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. | |||||
The company's annual effective tax rate is based on income, statutory tax rates, and tax planning strategies available in the various jurisdictions the company operates. Complex tax laws can be subject to different interpretations by the company and the respective government authorities. Significant judgment is required in evaluating tax positions and determining our tax expense. Tax positions are reviewed quarterly and tax assets and liabilities are adjusted as new information becomes available. | |||||
In evaluating the company's ability to recover deferred tax assets within the jurisdiction from which they arise, the company considers all positive and negative evidence. These assumptions require significant judgment about forecasts of future taxable income. | |||||
Stock-Based Compensation | ' | ||||
Stock-Based Compensation | |||||
The company has several stock-based compensation plans, which are described in Note 9 of the Consolidated Financial Statements. Our policy is to expense stock-based compensation using the fair-value based method of accounting for all awards granted. | |||||
Earnings per Share | ' | ||||
Earnings per Share | |||||
Basic earnings per share (EPS) excludes the dilutive effect of common shares that could potentially be issued, due to the exercise of stock options or the vesting of restricted shares, and is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS for fiscal years 2014, 2013, and 2012, was computed by dividing net earnings by the sum of the weighted-average number of shares outstanding, plus all dilutive shares that could potentially be issued. Refer to Note 8 of the Consolidated Financial Statements for further information regarding the computation of EPS. | |||||
Comprehensive Income (Loss) | ' | ||||
Comprehensive Income (Loss) | |||||
Comprehensive income consists of net earnings, foreign currency translation adjustments, and unrealized holding gain (loss) on “available-for-sale” securities and pension liability adjustments. Refer to Note 15 of the Consolidated Financial Statements for further information regarding Comprehensive income (loss). | |||||
Use of Estimates in the Preparation of Financial Statements | ' | ||||
Use of Estimates in the Preparation of Financial Statements | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||
Fair Value | ' | ||||
Fair Value | |||||
The Company follows ASC Topic 820, Fair Value Measurements and Disclosures, which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. This topic requires fair value measurements to be classified and disclosed in one of the following three categories: | |||||
• | Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges. | ||||
• | Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals. | ||||
• | Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques. | ||||
See Note 11 of the Consolidated Financial Statements for the required fair value disclosures. | |||||
Foreign Currency Forward Contracts Not Designated as Hedges | ' | ||||
Foreign Currency Forward Contracts Not Designated as Hedges | |||||
The company transacts business in various foreign currencies and has established a program that primarily utilizes foreign currency forward contracts to offset 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. These foreign currency exposures typically arise from net liability or asset exposures in non-functional currencies on the balance sheets of our foreign subsidiaries. These 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. |
Significant_Accounting_and_Rep2
Significant Accounting and Reporting Policies (Tables) | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Schedule of Goodwill and Indefinite-lived Intangibles | ' | |||||||||||||||
Goodwill and other indefinite-lived assets included in the Consolidated Balance Sheets consist of the following: | ||||||||||||||||
(In millions) | Goodwill | Indefinite-lived Intangible Assets | Total Goodwill and Indefinite-lived Intangible Assets | |||||||||||||
Balance, June 2, 2012 | $ | 146.4 | $ | 39.3 | $ | 185.7 | ||||||||||
Sale of owned dealers | (0.1 | ) | — | (0.1 | ) | |||||||||||
Maharam acquisition | 80.7 | 23 | 103.7 | |||||||||||||
Balance, June 1, 2013 | 227 | 62.3 | 289.3 | |||||||||||||
Foreign currency translation adjustments | 0.6 | — | 0.6 | |||||||||||||
Sale of owned dealers | (0.4 | ) | — | (0.4 | ) | |||||||||||
China manufacturing and distribution acquisition | 1 | — | 1 | |||||||||||||
Impairment charges | — | (21.4 | ) | (21.4 | ) | |||||||||||
Balance, May 31, 2014 | $ | 228.2 | $ | 40.9 | $ | 269.1 | ||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||
Refer to the following table for the combined gross carrying value and accumulated amortization for these amortizable intangibles. | ||||||||||||||||
31-May-14 | ||||||||||||||||
(In millions) | Patent and Trademarks | Customer Relationships | Other | Total | ||||||||||||
Gross carrying value | $ | 19.2 | $ | 43.6 | $ | 4.8 | $ | 67.6 | ||||||||
Accumulated amortization | 12.7 | 8.3 | 2.4 | 23.4 | ||||||||||||
Net | $ | 6.5 | $ | 35.3 | $ | 2.4 | $ | 44.2 | ||||||||
1-Jun-13 | ||||||||||||||||
Patent and Trademarks | Customer Relationships | Other | Total | |||||||||||||
Gross carrying value | $ | 21.6 | $ | 40.1 | $ | 5 | $ | 66.7 | ||||||||
Accumulated amortization | 12.3 | 4.8 | 1.6 | 18.7 | ||||||||||||
Net | $ | 9.3 | $ | 35.3 | $ | 3.4 | $ | 48 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||
Estimated amortization expense on existing amortizable intangible assets as of May 31, 2014, for each of the succeeding five fiscal years is as follows: | ||||||||||||||||
(In millions) | ||||||||||||||||
2015 | $ | 4.4 | ||||||||||||||
2016 | $ | 4.4 | ||||||||||||||
2017 | $ | 4.4 | ||||||||||||||
2018 | $ | 4.4 | ||||||||||||||
2019 | $ | 3.8 | ||||||||||||||
Schedule of Self Insurance Retention Levels | ' | |||||||||||||||
The company's retention levels designated within significant insurance arrangements as of May 31, 2014, are as follows: | ||||||||||||||||
(In millions) | Retention Level (per occurrence) | |||||||||||||||
General liability and auto liability/physical damage | $ | 1 | ||||||||||||||
Workers' compensation and property | $ | 0.75 | ||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | |||||||||||||||
The effects of derivative instruments on the consolidated financial statements were as follows for the fiscal years ended 2014 and 2013 (amounts presented exclude any income tax effects): | ||||||||||||||||
Fair Value of Derivative Instruments in Consolidated Balance Sheet | ||||||||||||||||
(In millions) | Fiscal Year | |||||||||||||||
Balance Sheet Location | 31-May-14 | 1-Jun-13 | ||||||||||||||
Foreign currency forward contracts not designated as hedges | Other current assets | $ | 0.2 | $ | 0.3 | |||||||||||
Foreign currency forward contracts not designated as hedges | Other current liabilities | $ | 0.1 | $ | 0.3 | |||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||
Effects of Derivative Instruments on Income | ||||||||||||||||
(In millions) | Fiscal Year | |||||||||||||||
Recognized Income on Derivative (Gain) Loss Location | 31-May-14 | 1-Jun-13 | June 2, 2012 | |||||||||||||
Foreign currency forward contracts | Other expenses (income): Other, net | $ | (0.1 | ) | $ | — | $ | 0.1 | ||||||||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 12 Months Ended | ||||
31-May-14 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of Business Acquisitions, by Acquisition | ' | ||||
The following table summarizes the fair values of the assets acquired and the liabilities assumed from Maharam on April 29, 2013: | |||||
Assets Acquired and Liabilities Assumed on April 29, 2013 | |||||
(In millions) | Fair Value | ||||
Purchase price | $ | 155.8 | |||
Fair value of the assets acquired | |||||
Accounts receivable | 11.1 | ||||
Inventory | 14.1 | ||||
Other current assets | 4.4 | ||||
Investments in nonconsolidated affiliates | 4.3 | ||||
Other intangible assets | 42.4 | ||||
Goodwill | 80.7 | ||||
Property | 12.1 | ||||
Long term deferred tax asset | 1.6 | ||||
Other assets | 0.2 | ||||
Total assets acquired | 170.9 | ||||
Fair value of liabilities assumed | |||||
Accounts payable | 6.5 | ||||
Current deferred tax liabilities | 1.6 | ||||
Accrued compensation and benefits | 4.7 | ||||
Other accrued liabilities | 1 | ||||
Other long term liabilities | 1.3 | ||||
Total liabilities assumed | 15.1 | ||||
Net assets acquired | $ | 155.8 | |||
Business Combination, Segment Allocation | ' | ||||
The goodwill amounts allocated to the reportable segments were as follows: | |||||
Goodwill Segment Allocation as of April 29, 2013 | |||||
(In millions) | Fair Value | ||||
North American Furniture Solutions | $ | 31.9 | |||
Specialty and Consumer | 48.8 | ||||
Total Goodwill | $ | 80.7 | |||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | ' | ||||
Intangible assets acquired as a result of the April 29, 2013 acquisition of Maharam were valued at $42.4 million. These amounts are reflected in the values presented in the table below: | |||||
Intangible Assets Acquired on April 29, 2013 | |||||
(In millions) | Fair Value | Useful Life | |||
Trade name | $ | 23 | Indefinite | ||
Designs and patterns | 3.1 | 5 | |||
Specifier and customer relationships | 16 | 15 | |||
Non-compete agreements | 0.3 | 2 | |||
Total Intangibles Acquired | $ | 42.4 | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
31-May-14 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current | ' | ||||||||
(In millions) | May 31, 2014 | June 1, 2013 | |||||||
Finished goods and work in process | $ | 58.2 | $ | 57.5 | |||||
Raw materials | 20.2 | 18.7 | |||||||
Total | $ | 78.4 | $ | 76.2 | |||||
Investments_in_Nonconsolidated1
Investments in Nonconsolidated Affiliates (Tables) | 12 Months Ended | ||
31-May-14 | |||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||
Equity Method Investments | ' | ||
The company had an ownership interest in four nonconsolidated affiliates at May 31, 2014. These equity method investments were acquired through the Maharam business combination. Refer to the company's ownership percentages shown below: | |||
Ownership Interest | 31-May-14 | 1-Jun-13 | |
Kvadrat Maharam Arabia DMCC | 50.00% | 50.00% | |
Kvadrat Maharam Pty Limited | 50.00% | 50.00% | |
Kvadrat Maharam Turkey JSC | 50.00% | 50.00% | |
Danskina B.V. | 50.00% | 50.00% |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
31-May-14 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||
Long-term debt consisted of the following obligations: | |||||||||
(In millions) | May 31, 2014 | June 1, 2013 | |||||||
Series A senior notes, 5.94%, due January 3, 2015 | $ | 50 | $ | 50 | |||||
Series B senior notes, 6.42%, due January 3, 2018 | 150 | 150 | |||||||
Debt securities, 6.0%, due March 1, 2021 | 50 | 50 | |||||||
Total | $ | 250 | $ | 250 | |||||
Schedule of Maturities of Long-term Debt | ' | ||||||||
Annual maturities of long-term debt for the five fiscal years subsequent to May 31, 2014, are as follows: | |||||||||
(In millions) | |||||||||
2015 | $ | 50 | |||||||
2016 | $ | — | |||||||
2017 | $ | — | |||||||
2018 | $ | 150 | |||||||
2019 | $ | — | |||||||
Thereafter | $ | 50 | |||||||
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | |||
31-May-14 | ||||
Leases [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
Future minimum rental payments required under operating leases that have non-cancelable lease terms as of May 31, 2014, are as follows: | ||||
(In millions) | ||||
2015 | $ | 21 | ||
2016 | $ | 17 | ||
2017 | $ | 11.8 | ||
2018 | $ | 9.8 | ||
2019 | $ | 7.1 | ||
Thereafter | $ | 18.7 | ||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Funded Status and Amounts Recognized in the Balance Sheet | ' | |||||||||||||||||||||||
The following table presents, for the fiscal years noted, a summary of the changes in the projected benefit obligation, plan assets and funded status of the company's domestic and international pension plans and post-retirement plan: | ||||||||||||||||||||||||
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
(In millions) | Domestic | International | Domestic | International | ||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 314.7 | $ | 91.2 | $ | 332.7 | $ | 86.1 | $ | 9 | $ | 9.8 | ||||||||||||
Service cost | — | — | 1.9 | — | — | — | ||||||||||||||||||
Interest cost | 5.2 | 4.2 | 10.9 | 3.7 | 0.3 | 0.3 | ||||||||||||||||||
Curtailments | — | — | — | — | — | — | ||||||||||||||||||
Plan settlements | (331.1 | ) | — | (40.0 | ) | — | — | — | ||||||||||||||||
Foreign exchange impact | — | 9.6 | — | (1.2 | ) | — | — | |||||||||||||||||
Actuarial (gain)/loss | 16.8 | 2.3 | 15.6 | 4.5 | (1.0 | ) | (0.2 | ) | ||||||||||||||||
Employee contributions | — | — | — | — | — | — | ||||||||||||||||||
Expenses paid | (0.4 | ) | — | — | — | — | — | |||||||||||||||||
Benefits paid | (4.1 | ) | (1.9 | ) | (6.4 | ) | (1.9 | ) | (0.8 | ) | (0.9 | ) | ||||||||||||
Benefit obligation at end of year | $ | 1.1 | $ | 105.4 | $ | 314.7 | $ | 91.2 | $ | 7.5 | $ | 9 | ||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 290 | $ | 84.2 | $ | 316.9 | $ | 72.6 | $ | — | $ | — | ||||||||||||
Actual return on plan assets | (2.3 | ) | 2.4 | 19.5 | 11.1 | — | — | |||||||||||||||||
Foreign exchange impact | — | 8.6 | — | (1.2 | ) | — | — | |||||||||||||||||
Employer contributions | 48.8 | 1.5 | — | 3.6 | 0.8 | 0.9 | ||||||||||||||||||
Employee contributions | — | — | — | — | — | — | ||||||||||||||||||
Plan settlements | (331.1 | ) | — | (40.0 | ) | — | — | — | ||||||||||||||||
Expenses paid | (0.4 | ) | — | — | — | — | — | |||||||||||||||||
Benefits paid | (4.1 | ) | (1.9 | ) | (6.4 | ) | (1.9 | ) | (0.8 | ) | (0.9 | ) | ||||||||||||
Transfers out to 401(k) plan | (0.9 | ) | — | — | — | — | — | |||||||||||||||||
Fair value of plan assets at end of year | $ | — | $ | 94.8 | $ | 290 | $ | 84.2 | $ | — | $ | — | ||||||||||||
Funded status: | ||||||||||||||||||||||||
Under funded status at end of year | $ | (1.1 | ) | $ | (10.6 | ) | $ | (24.7 | ) | $ | (7.0 | ) | $ | (7.5 | ) | $ | (9.0 | ) | ||||||
Components of the amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||||||||||||
Current liabilities | $ | (0.1 | ) | $ | — | $ | (0.1 | ) | $ | — | $ | (0.9 | ) | $ | (1.0 | ) | ||||||||
Non-current liabilities | $ | (1.0 | ) | $ | (10.6 | ) | $ | (24.6 | ) | $ | (7.0 | ) | $ | (6.6 | ) | $ | (8.0 | ) | ||||||
Components of the amounts recognized in accumulated other comprehensive loss before the effect of income taxes: | ||||||||||||||||||||||||
Unrecognized net actuarial loss | $ | 0.4 | $ | 34.3 | $ | 140.5 | $ | 27.9 | $ | 0.3 | $ | 1.3 | ||||||||||||
Unrecognized prior service cost (credit) | — | — | — | — | — | — | ||||||||||||||||||
Accumulated other comprehensive loss | $ | 0.4 | $ | 34.3 | $ | 140.5 | $ | 27.9 | $ | 0.3 | $ | 1.3 | ||||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||||||||||
The following table is a summary of the annual cost of the company's pension and post-retirement plans: | ||||||||||||||||||||||||
Components of Net Periodic Benefit Costs and Other Changes Recognized in Other Comprehensive Income: | ||||||||||||||||||||||||
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Domestic: | ||||||||||||||||||||||||
Service cost | $ | — | $ | 1.9 | $ | 7 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 5.2 | 10.9 | 14.4 | 0.3 | 0.3 | 0.4 | ||||||||||||||||||
Expected return on plan assets | (3.6 | ) | (12.1 | ) | (19.3 | ) | — | — | — | |||||||||||||||
Net amortization | 4.7 | 11.8 | 7.2 | — | 0.1 | 0.1 | ||||||||||||||||||
Curtailment (gain) | — | — | (1.7 | ) | — | — | — | |||||||||||||||||
Settlement Loss | 158.2 | 18.8 | — | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 164.5 | $ | 31.3 | $ | 7.6 | $ | 0.3 | $ | 0.4 | $ | 0.5 | ||||||||||||
International: | ||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 1.3 | ||||||||||||||||||
Interest cost | 4.2 | 3.7 | 3.9 | |||||||||||||||||||||
Expected return on plan assets | (5.2 | ) | (4.9 | ) | (4.8 | ) | ||||||||||||||||||
Net amortization | 1.8 | 1.4 | 0.3 | |||||||||||||||||||||
Net periodic benefit cost | $ | 0.8 | $ | 0.2 | $ | 0.7 | ||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income): | ||||||||||||||||||||||||
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Domestic: | ||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 22.9 | $ | 8.2 | $ | (1.0 | ) | $ | (0.3 | ) | ||||||||||||||
Net amortization, curtailment, and settlements | (163.0 | ) | (30.6 | ) | — | (0.1 | ) | |||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | (140.1 | ) | $ | (22.4 | ) | $ | (1.0 | ) | $ | (0.4 | ) | ||||||||||||
International: | ||||||||||||||||||||||||
Net actuarial (gain) loss | $ | 5.2 | $ | (1.7 | ) | |||||||||||||||||||
Effect of exchange rates on amounts included in accumulated other comprehensive income | 3 | (0.2 | ) | |||||||||||||||||||||
Net amortization | (1.8 | ) | (1.4 | ) | ||||||||||||||||||||
Total recognized in other comprehensive (income) loss | $ | 6.4 | $ | (3.3 | ) | |||||||||||||||||||
Schedule of Assumptions Used | ' | |||||||||||||||||||||||
The weighted-average actuarial assumptions used to determine the benefit obligation amounts and the net periodic benefit cost for the company's pension and post-retirement plans are as follows: | ||||||||||||||||||||||||
The weighted-average used in the determination of net periodic benefit cost: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
(Percentages) | Domestic | International | Domestic | International | Domestic | International | ||||||||||||||||||
Discount rate | 3.43 | 4.4 | 3.34 | 4.2 | 4.75 | 5.4 | ||||||||||||||||||
Compensation increase rate | n/a | 3.5 | 3 | 3 | 3 | 3.5 | ||||||||||||||||||
Expected return on plan assets | n/a | 6 | 4.2 | 6 | 7 | 7 | ||||||||||||||||||
The weighted-average used in the determination of the projected benefit obligations: | ||||||||||||||||||||||||
Discount rate | 3.44 | 4.4 | 3.43 | 4.4 | 3.57 | 4.2 | ||||||||||||||||||
Compensation increase rate | n/a | 3.35 | n/a | 3.5 | 3 | 3 | ||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ' | |||||||||||||||||||||||
Assumed health care cost-trend rates have a significant effect on the amounts reported for retiree health care costs. A one-percentage-point change in the assumed health care cost-trend rates would have the following effects: | ||||||||||||||||||||||||
(In millions) | 1 Percent Increase | 1 Percent Decrease | ||||||||||||||||||||||
Effect on total fiscal 2014 service and interest cost components | $ | — | $ | — | ||||||||||||||||||||
Effect on post-retirement benefit obligation at May 31, 2014 | $ | 0.2 | $ | (0.2 | ) | |||||||||||||||||||
Schedule of Fair Value and Allocation of Plan Assets | ' | |||||||||||||||||||||||
The target asset allocation at the end of fiscal 2014 and asset categories for the company's primary pension plans for fiscal 2014 and 2013 are as follows: | ||||||||||||||||||||||||
Primary Domestic Plan | ||||||||||||||||||||||||
Asset Category | Targeted Asset Allocation Percentage | Percentage of Plan Assets | ||||||||||||||||||||||
at Year End | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Equities | — | — | 10 | |||||||||||||||||||||
Fixed Income | — | — | 86 | |||||||||||||||||||||
Other | — | — | 4 | |||||||||||||||||||||
Total | — | 100 | ||||||||||||||||||||||
International Plan | ||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Equities | — | — | — | |||||||||||||||||||||
Fixed Income | 20 | 26 | 26 | |||||||||||||||||||||
Common collective trusts | 80 | 74 | 74 | |||||||||||||||||||||
Total | 100 | 100 | ||||||||||||||||||||||
(In millions) | Domestic Plans as of May 31, 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | — | ||||||||||||||||||
US & international equity securities | — | — | — | |||||||||||||||||||||
Debt securities-corporate | — | — | — | |||||||||||||||||||||
Common collective trust-equities | — | — | — | |||||||||||||||||||||
Common collective trusts-fixed income | — | — | — | |||||||||||||||||||||
Total | $ | — | $ | — | $ | — | ||||||||||||||||||
(In millions) | International Plan as of May 31, 2014 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 0.2 | $ | — | $ | 0.2 | ||||||||||||||||||
Foreign government obligations | — | 24.5 | 24.5 | |||||||||||||||||||||
Common collective trusts-balanced | — | 70.1 | 70.1 | |||||||||||||||||||||
Total | $ | 0.2 | $ | 94.6 | $ | 94.8 | ||||||||||||||||||
(In millions) | Domestic Plans as of June 1, 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 12.5 | $ | — | $ | 12.5 | ||||||||||||||||||
US & international equity securities | 2.2 | — | 2.2 | |||||||||||||||||||||
Debt securities-corporate | 7.6 | — | 7.6 | |||||||||||||||||||||
Common collective trust-equities | — | 26.5 | 26.5 | |||||||||||||||||||||
Common collective trusts-fixed income | — | 241.2 | 241.2 | |||||||||||||||||||||
Total | $ | 22.3 | $ | 267.7 | $ | 290 | ||||||||||||||||||
(In millions) | International Plan as of June 1, 2013 | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Total | |||||||||||||||||||||
Cash and cash equivalents | $ | 0.2 | $ | — | $ | 0.2 | ||||||||||||||||||
Foreign government obligations | — | 22 | 22 | |||||||||||||||||||||
Common collective trusts-balanced | — | 62 | 62 | |||||||||||||||||||||
Total | $ | 0.2 | $ | 84 | $ | 84.2 | ||||||||||||||||||
Schedule of Expected Benefit Payments | ' | |||||||||||||||||||||||
The following represents a summary of the benefits expected to be paid by the plans in future fiscal years. These expected benefits were estimated based on the same actuarial valuation assumptions used to determine benefit obligations at May 31, 2014. | ||||||||||||||||||||||||
(In millions) | Pension Benefits Domestic | Pension Benefits International | Post-Retirement Benefits | |||||||||||||||||||||
2015 | $ | 0.1 | $ | 1.9 | $ | 0.9 | ||||||||||||||||||
2016 | $ | 0.1 | $ | 2.4 | $ | 0.9 | ||||||||||||||||||
2017 | $ | 0.1 | $ | 2.8 | $ | 0.8 | ||||||||||||||||||
2018 | $ | 0.1 | $ | 3 | $ | 0.8 | ||||||||||||||||||
2019 | $ | 0.1 | $ | 3.1 | $ | 0.7 | ||||||||||||||||||
2020-2024 | $ | 0.4 | $ | 18.7 | $ | 2.7 | ||||||||||||||||||
Common_Stock_and_Per_Share_Inf1
Common Stock and Per Share Information (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
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 EPS for each of the last three fiscal years: | ||||||||||||
(In millions, except shares) | 2014 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Numerator for both basic and diluted EPS, net earnings (loss) | $ | (22.1 | ) | $ | 68.2 | $ | 75.2 | |||||
Denominator: | ||||||||||||
Denominator for basic EPS, weighted-average common shares outstanding | 58,955,487 | 58,425,522 | 58,171,472 | |||||||||
Potentially dilutive shares resulting from stock plans | — | 418,992 | 285,404 | |||||||||
Denominator for diluted EPS | 58,955,487 | 58,844,514 | 58,456,876 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||
Schedule of Pre-Tax Compensation Expense and Related Tax Benefits | ' | |||||||||||||||||||||
Pre-tax compensation expense and the related income tax benefit for all types of stock-based programs was as follows for the periods indicated: | ||||||||||||||||||||||
(In millions) | 31-May-14 | 1-Jun-13 | 2-Jun-12 | |||||||||||||||||||
Employee stock purchase program | $ | 0.3 | $ | 0.3 | $ | 0.3 | ||||||||||||||||
Stock option plans | 2.3 | 3.6 | 2.8 | |||||||||||||||||||
Restricted stock grants | 0.2 | 0.3 | 0.5 | |||||||||||||||||||
Restricted stock units | 5.2 | 3.2 | 2.4 | |||||||||||||||||||
Performance share units | 3 | 0.7 | — | |||||||||||||||||||
Total | $ | 11 | $ | 8.1 | $ | 6 | ||||||||||||||||
Tax benefit | $ | 4 | $ | 2.9 | $ | 2.1 | ||||||||||||||||
Schedule of Fair Value of Employee Stock Options | ' | |||||||||||||||||||||
The company estimated the fair value of employee stock options on the date of grant using the Black-Scholes model. In determining these values, the following weighted-average assumptions were used for the options granted during the fiscal years indicated. | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Risk-free interest rates (1) | 1.62 | % | 0.77 | % | 1.75 | % | ||||||||||||||||
Expected term of options (2) | 5.5 years | 5.5 years | 5.5 years | |||||||||||||||||||
Expected volatility (3) | 46 | % | 47 | % | 42 | % | ||||||||||||||||
Dividend yield (4) | 1.74 | % | 1.98 | % | 0.34 | % | ||||||||||||||||
Weighted-average grant-date fair value of stock options: | ||||||||||||||||||||||
Granted with exercise prices equal to the fair market value of the stock on the date of grant | $ | 10.68 | $ | 6.52 | $ | 10.15 | ||||||||||||||||
Schedule of Stock Option Plan Transactions | ' | |||||||||||||||||||||
The following is a summary of the transactions under the company's stock option plans: | ||||||||||||||||||||||
Shares Under Option | Weighted-Average Exercise Prices | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||
Outstanding at May 28, 2011 | 2,578,590 | $ | 24.62 | 5.5 | $ | 6.6 | ||||||||||||||||
Granted at market | 365,141 | $ | 25.75 | |||||||||||||||||||
Exercised | (215,524 | ) | $ | 19.74 | ||||||||||||||||||
Forfeited or expired | (398,958 | ) | $ | 25.76 | ||||||||||||||||||
Outstanding at June 2, 2012 | 2,329,249 | $ | 25.06 | 5.7 | $ | 0.9 | ||||||||||||||||
Granted at market | 499,870 | $ | 18.17 | |||||||||||||||||||
Exercised | (297,255 | ) | $ | 17.49 | ||||||||||||||||||
Forfeited or expired | (120,490 | ) | $ | 24.56 | ||||||||||||||||||
Outstanding at June 1, 2013 | 2,411,374 | $ | 24.59 | 5.7 | $ | 11.2 | ||||||||||||||||
Granted at market | 46,829 | $ | 28.74 | |||||||||||||||||||
Exercised | (821,050 | ) | $ | 22.97 | ||||||||||||||||||
Forfeited or expired | (40,169 | ) | $ | 27.47 | ||||||||||||||||||
Outstanding at May 31, 2014 | 1,596,984 | $ | 25.47 | 4.7 | $ | 9.9 | ||||||||||||||||
Ending vested + expected to vest | 1,588,824 | $ | 25.49 | 4.6 | $ | 9.8 | ||||||||||||||||
Exercisable at end of period | 1,122,446 | $ | 27.35 | 3.3 | $ | 5.1 | ||||||||||||||||
Schedule of Outstanding Stock Options | ' | |||||||||||||||||||||
The following is a summary of stock options outstanding at May 31, 2014: | ||||||||||||||||||||||
Outstanding Stock Options | Exercisable Stock Options | |||||||||||||||||||||
Range of Exercise Price | Shares | Weighted-Average Remaining Contractual Term (Years) | Weighted-Average Exercise Prices | Shares | Weighted-Average Exercise Prices | |||||||||||||||||
$12.33-18.17 | 553,690 | 7.1 | $ | 17.18 | 238,880 | $ | 15.87 | |||||||||||||||
$25.06-30.54 | 627,041 | 4.3 | $ | 27.9 | 467,313 | $ | 28.33 | |||||||||||||||
$31.84-38.13 | 416,253 | 2 | $ | 32.85 | 416,253 | $ | 32.85 | |||||||||||||||
1,596,984 | 4.7 | $ | 25.47 | 1,122,446 | $ | 27.35 | ||||||||||||||||
Schedule of Restricted Stock Grants | ' | |||||||||||||||||||||
The company recognizes the related compensation expense on a straight-line basis over the requisite service period. A summary of shares subject to restrictions are as follows: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | Shares | Weighted Average Grant-Date Fair Value | |||||||||||||||||
Outstanding, at beginning of year | 67,474 | $ | 20.45 | 83,331 | $ | 19.49 | 70,595 | $ | 18.44 | |||||||||||||
Granted | — | $ | — | — | $ | — | 24,323 | $ | 21.46 | |||||||||||||
Vested | (3,440 | ) | $ | 15.82 | (14,357 | ) | $ | 15.06 | (7,787 | ) | $ | 17.56 | ||||||||||
Forfeited or expired | (2,000 | ) | $ | 21.98 | (1,500 | ) | $ | 18.71 | (3,800 | ) | $ | 16.44 | ||||||||||
Outstanding, at end of year | 62,034 | $ | 20.66 | 67,474 | $ | 20.45 | 83,331 | $ | 19.49 | |||||||||||||
Schedule of Restricted Stock Unit (RSU) Activity | ' | |||||||||||||||||||||
The following is a summary of restricted stock unit transactions for the fiscal years indicated: | ||||||||||||||||||||||
Share | Weighted Average | Aggregate Intrinsic Value in Millions | Weighted-Average | |||||||||||||||||||
Units | Grant-Date | Remaining Contractual | ||||||||||||||||||||
Fair Value | Term (Years) | |||||||||||||||||||||
Outstanding at May 28, 2011 | 285,101 | $ | 21.72 | $ | 6.9 | 1.5 | ||||||||||||||||
Granted | 125,589 | $ | 25.72 | |||||||||||||||||||
Forfeited | (10,483 | ) | $ | 25.13 | ||||||||||||||||||
Released | (78,484 | ) | $ | 26.56 | ||||||||||||||||||
Outstanding at June 2, 2012 | 321,723 | $ | 21.06 | $ | 5.7 | 1.4 | ||||||||||||||||
Ending vested + expected to vest | 308,645 | $ | 5.4 | 1.4 | ||||||||||||||||||
Outstanding at June 2, 2012 | 321,723 | $ | 21.06 | $ | 5.7 | 1.4 | ||||||||||||||||
Granted | 341,534 | $ | 20.49 | |||||||||||||||||||
Forfeited | (66,368 | ) | $ | 19 | ||||||||||||||||||
Released | (17,569 | ) | $ | 16.14 | ||||||||||||||||||
Outstanding at June 1, 2013 | 579,320 | $ | 21.35 | $ | 16 | 1.7 | ||||||||||||||||
Ending vested + expected to vest | 547,093 | $ | 15 | 1.6 | ||||||||||||||||||
Outstanding at June 1, 2013 | 579,320 | $ | 21.35 | $ | 16 | 1.7 | ||||||||||||||||
Granted | 142,004 | $ | 28.55 | |||||||||||||||||||
Forfeited | (10,124 | ) | $ | 22.94 | ||||||||||||||||||
Released | (145,094 | ) | $ | 20.3 | ||||||||||||||||||
Outstanding at May 31, 2014 | 566,106 | $ | 23.31 | $ | 17.2 | 1.5 | ||||||||||||||||
Ending vested + expected to vest | 550,322 | $ | 16 | 1.5 | ||||||||||||||||||
Schedule of Performance-based Stock Units (PSU) Activity | ' | |||||||||||||||||||||
The following is a summary of performance share unit transactions for the fiscal years indicated: | ||||||||||||||||||||||
Share | Weighted Average Grant-Date Fair Value | Aggregate Intrinsic | Weighted-Average | |||||||||||||||||||
Units | Value in Millions | Remaining Contractual | ||||||||||||||||||||
Term (Years) | ||||||||||||||||||||||
Outstanding at May 28, 2011 | 90,380 | $ | 25.52 | $ | — | 0.2 | ||||||||||||||||
Granted | — | $ | — | |||||||||||||||||||
Forfeited | (90,380 | ) | $ | 25.52 | ||||||||||||||||||
Outstanding at June 2, 2012 | — | $ | — | $ | — | 0 | ||||||||||||||||
Ending vested + expected to vest | — | $ | — | 0 | ||||||||||||||||||
Outstanding at June 2, 2012 | — | $ | — | $ | — | 0 | ||||||||||||||||
Granted | 72,500 | $ | 17.1 | |||||||||||||||||||
Forfeited | — | $ | — | |||||||||||||||||||
Outstanding at June 1, 2013 | 72,500 | $ | 17.1 | $ | 2 | 2.1 | ||||||||||||||||
Ending vested + expected to vest | 68,823 | $ | 1.9 | 2.1 | ||||||||||||||||||
Outstanding at June 1, 2013 | 72,500 | $ | 17.1 | $ | 2 | 2.1 | ||||||||||||||||
Granted | 139,722 | $ | 31.66 | |||||||||||||||||||
Forfeited | (2,026 | ) | $ | 31.74 | ||||||||||||||||||
Outstanding at May 31, 2014 | 210,196 | $ | 26.64 | $ | 6.6 | 1.8 | ||||||||||||||||
Ending vested + expected to vest | 203,752 | $ | 6.4 | 1.8 | ||||||||||||||||||
Schedule of Director Share Based Compensation | ' | |||||||||||||||||||||
The exercise price of the stock options granted may not be less than the market price of the company's common stock on the date of grant. Under the plan, the Board members received the following shares or options in the fiscal years indicated: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Options | — | — | — | |||||||||||||||||||
Shares of common stock | 12,358 | 15,746 | 18,119 | |||||||||||||||||||
Shares through the deferred compensation program | 2,317 | 2,779 | 3,301 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | ||||||||||||
The components of earnings (loss) before income taxes are as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (45.1 | ) | $ | 89.9 | $ | 107.6 | ||||||
Foreign | 1.7 | 7.3 | 11.9 | ||||||||||
Total | $ | (43.4 | ) | $ | 97.2 | $ | 119.5 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||
The provision (benefit) for income taxes consists of the following: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Current: Domestic - Federal | $ | 22.2 | $ | 36.4 | $ | 21.8 | |||||||
Domestic - State | 4.6 | 5.2 | 2 | ||||||||||
Foreign | 4.8 | 3.9 | 6 | ||||||||||
31.6 | 45.5 | 29.8 | |||||||||||
Deferred: Domestic - Federal | (43.6 | ) | (14.9 | ) | 11.2 | ||||||||
Domestic - State | (5.6 | ) | (1.4 | ) | 1.4 | ||||||||
Foreign | (3.6 | ) | (0.3 | ) | 1.9 | ||||||||
(52.8 | ) | (16.6 | ) | 14.5 | |||||||||
Total income tax provision | $ | (21.2 | ) | $ | 28.9 | $ | 44.3 | ||||||
Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The following table represents a reconciliation of income taxes at the United States statutory rate with the effective tax rate as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Income taxes computed at the United States Statutory rate of 35% | $ | (15.2 | ) | $ | 34 | $ | 41.8 | ||||||
Increase (decrease) in taxes resulting from: | |||||||||||||
Change in unrecognized tax benefits | 0.4 | 0.1 | (0.3 | ) | |||||||||
Foreign statutory rate differences | (0.9 | ) | (1.9 | ) | (1.2 | ) | |||||||
Meals and entertainment | 1 | 0.8 | 0.8 | ||||||||||
Manufacturing deduction under the American Jobs Creation Act of 2004 | (3.9 | ) | (4.0 | ) | (2.9 | ) | |||||||
State taxes | (0.9 | ) | 2.5 | 3 | |||||||||
Repatriated earnings and related foreign tax credits | (0.3 | ) | (0.6 | ) | (0.2 | ) | |||||||
Other, net | (1.4 | ) | (2.0 | ) | 3.3 | ||||||||
Income tax expense (benefit) | $ | (21.2 | ) | $ | 28.9 | $ | 44.3 | ||||||
Effective tax rate | 48.9 | % | 29.8 | % | 37.1 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The tax effects and types of temporary differences that give rise to significant components of the deferred tax assets and liabilities at May 31, 2014 and June 1, 2013, are as follows: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Compensation-related accruals | $ | 19.5 | $ | 17.7 | |||||||||
Accrued pension and post-retirement benefit obligations | 9.7 | 19.4 | |||||||||||
Inventory related | 3.7 | 2.7 | |||||||||||
Reserves for uncollectible accounts and notes receivable | 1.5 | 1.8 | |||||||||||
Other reserves and accruals | 4.6 | 3.9 | |||||||||||
Warranty | 8.5 | 8.2 | |||||||||||
State and local tax net operating loss carryforwards | 3.2 | 3 | |||||||||||
Federal net operating loss carryforward | 0.1 | 0.2 | |||||||||||
State credits | 0.2 | 0.6 | |||||||||||
Foreign tax net operating loss carryforwards | 9.9 | 9.2 | |||||||||||
Foreign tax credits | 0.1 | 0.1 | |||||||||||
Foreign capital loss carryforward | 0.1 | 0.1 | |||||||||||
Financing costs | 1.2 | 2.1 | |||||||||||
Other | 3.4 | 3.6 | |||||||||||
Subtotal | 65.7 | 72.6 | |||||||||||
Valuation allowance | (8.5 | ) | (9.9 | ) | |||||||||
Total | $ | 57.2 | $ | 62.7 | |||||||||
Deferred tax liabilities: | |||||||||||||
Book basis in property in excess of tax basis | $ | (14.7 | ) | $ | (16.5 | ) | |||||||
Intangible assets | (18.1 | ) | (20.5 | ) | |||||||||
Other | (2.4 | ) | (2.9 | ) | |||||||||
Total | $ | (35.2 | ) | $ | (39.9 | ) | |||||||
Schedule of Unrecognized Tax Benefits | ' | ||||||||||||
The components of the company's unrecognized tax benefits are as follows: | |||||||||||||
(In millions) | |||||||||||||
Balance at June 2, 2012 | $ | 1.3 | |||||||||||
Increases related to current year income tax positions | 0.4 | ||||||||||||
Increases related to prior year income tax positions | — | ||||||||||||
Decreases related to prior year income tax positions | (0.1 | ) | |||||||||||
Decreases related to lapse of applicable statute of limitations | (0.2 | ) | |||||||||||
Decreases related to settlements | — | ||||||||||||
Balance at June 1, 2013 | 1.4 | ||||||||||||
Increases related to current year income tax positions | 0.5 | ||||||||||||
Increases related to prior year income tax positions | — | ||||||||||||
Decreases related to prior year income tax positions | — | ||||||||||||
Decreases related to lapse of applicable statute of limitations | (0.1 | ) | |||||||||||
Decreases related to settlements | — | ||||||||||||
Balance at May 31, 2014 | $ | 1.8 | |||||||||||
Schedule of Unrecognized Tax Benefits, Interest, Penalties and Related Liability | ' | ||||||||||||
Interest and penalties and the related liability were as follows for the periods indicated: | |||||||||||||
(In millions) | May 31, 2014 | June 1, 2013 | June 2, 2012 | ||||||||||
Interest and penalty expense | $ | 0.2 | $ | — | $ | — | |||||||
Liability for interest and penalties | $ | 0.6 | $ | 0.4 | |||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value by Balance Sheet Grouping | ' | ||||||||||||||||
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) | 31-May-14 | 1-Jun-13 | |||||||||||||||
Carrying value | $ | 250 | $ | 250 | |||||||||||||
Fair value | $ | 279.2 | $ | 283.5 | |||||||||||||
Schedule of Fair Value Assets and Liabilities Measured on a Recurring and Nonrecurring Basis | ' | ||||||||||||||||
The following tables set forth financial assets and liabilities measured at fair value in the Consolidated Balance Sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of May 31, 2014 and June 1, 2013: | |||||||||||||||||
(In millions) | Fair Value Measurements | ||||||||||||||||
May 31, 2014 | June 1, 2013 | ||||||||||||||||
Financial Assets | Quoted Prices With Other Observable Inputs | Quoted Prices With Other Observable Inputs | |||||||||||||||
(Level 2) | (Level 2) | ||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||
Asset-backed securities | $ | 0.4 | $ | 0.8 | |||||||||||||
Corporate debt securities | 1.2 | 1.7 | |||||||||||||||
Government obligations | 7.9 | 5.1 | |||||||||||||||
Mortgage-backed securities | 1.6 | 3.2 | |||||||||||||||
Foreign currency forward contracts | 0.2 | 0.3 | |||||||||||||||
Deferred compensation plan | 6.3 | 4.8 | |||||||||||||||
Total | $ | 17.6 | $ | 15.9 | |||||||||||||
Financial Liabilities | |||||||||||||||||
Foreign currency forward contracts | $ | 0.1 | $ | 0.3 | |||||||||||||
Total | $ | 0.1 | $ | 0.3 | |||||||||||||
Schedule of Unrealized Gain (Loss) on Investments | ' | ||||||||||||||||
The following is a summary of the carrying and market values of the company's marketable securities as of the dates indicated: | |||||||||||||||||
May 31, 2014 | |||||||||||||||||
(In millions) | Cost | Unrealized Gain | Unrealized Loss | Market Value | |||||||||||||
Asset-backed securities | $ | 0.4 | $ | — | $ | — | $ | 0.4 | |||||||||
Corporate debt securities | 1.2 | — | — | 1.2 | |||||||||||||
Government obligations | 7.9 | — | — | 7.9 | |||||||||||||
Mortgage-backed securities | 1.6 | — | — | 1.6 | |||||||||||||
Total | $ | 11.1 | $ | — | $ | — | $ | 11.1 | |||||||||
1-Jun-13 | |||||||||||||||||
(In millions) | Cost | Unrealized Gain | Unrealized Loss | Market Value | |||||||||||||
Asset-backed securities | $ | 0.8 | $ | — | $ | — | $ | 0.8 | |||||||||
Corporate debt securities | 1.7 | — | — | 1.7 | |||||||||||||
Government obligations | 5.1 | — | — | 5.1 | |||||||||||||
Mortgage-backed securities | 3.2 | — | — | 3.2 | |||||||||||||
Total | $ | 10.8 | $ | — | $ | — | $ | 10.8 | |||||||||
Schedule of Debt Securities Maturities | ' | ||||||||||||||||
Maturities of debt securities included in marketable securities as of May 31, 2014, are as follows: | |||||||||||||||||
(In millions) | Cost | Market | |||||||||||||||
Value | |||||||||||||||||
Due within one year | $ | 2.9 | $ | 2.9 | |||||||||||||
Due after one year through five years | 8.1 | 8.1 | |||||||||||||||
Due after five years | 0.1 | 0.1 | |||||||||||||||
Total | $ | 11.1 | $ | 11.1 | |||||||||||||
Supplemental_Disclosures_of_Ca1
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | ||||||||||||
The following table presents the adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Depreciation expense | $ | 37.8 | $ | 34.4 | $ | 34.4 | |||||||
Amortization expense | 4.6 | 3.1 | 2.8 | ||||||||||
Provision for losses on accounts receivable and notes receivable | 1 | 0.6 | 1.6 | ||||||||||
(Gain) Loss on sales of property and dealers | (1.7 | ) | 0.8 | 0.9 | |||||||||
Deferred income tax expense (benefit) | (52.8 | ) | (16.6 | ) | 14.5 | ||||||||
Pension expense | 115.4 | 31.9 | 8.8 | ||||||||||
Restructuring and impairment expenses | 26.2 | 1.2 | 5.4 | ||||||||||
Stock-based compensation | 11 | 8.1 | 6 | ||||||||||
Excess tax benefits from stock-based compensation | (1.1 | ) | (0.3 | ) | 0.1 | ||||||||
Other changes in long-term liabilities | (8.5 | ) | (9.2 | ) | (66.5 | ) | |||||||
Other | 1.5 | (2.9 | ) | (1.9 | ) | ||||||||
Changes in current assets and liabilities: | |||||||||||||
Decrease (increase) in assets: | |||||||||||||
Accounts receivable | (26.7 | ) | (7.7 | ) | 17.5 | ||||||||
Inventories | (2.2 | ) | (4.6 | ) | 0.2 | ||||||||
Prepaid expenses and other | (3.2 | ) | 9.3 | 2.7 | |||||||||
Increase (decrease) in liabilities: | |||||||||||||
Accounts payable | 2.6 | 6 | 4.8 | ||||||||||
Accrued liabilities | 8.3 | 14.2 | (16.4 | ) | |||||||||
Total changes in current assets and liabilities | (21.2 | ) | 17.2 | 8.8 | |||||||||
Total adjustments | $ | 112.2 | $ | 68.3 | $ | 14.9 | |||||||
Warranties_Guarantees_and_Cont1
Warranties, Guarantees, and Contingencies (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Schedule of Product Warranty Liability | ' | ||||||||||||
Changes in the warranty reserve for the stated periods were as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Accrual balance, beginning | $ | 24.8 | $ | 22.2 | $ | 17 | |||||||
Accrual for warranty matters | 20.2 | 23.3 | 24.9 | ||||||||||
Change in estimate | — | — | 5 | ||||||||||
Settlements | (19.8 | ) | (20.7 | ) | (24.7 | ) | |||||||
Accrual balance, ending | $ | 25.2 | $ | 24.8 | $ | 22.2 | |||||||
Operating_Segments_Tables
Operating Segments (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Segment Reporting Information | ' | ||||||||||||
The following is a summary of certain key financial measures for the respective fiscal years indicated: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Net Sales: | |||||||||||||
North American Furniture Solutions | $ | 1,216.30 | $ | 1,221.90 | $ | 1,218.50 | |||||||
ELA Furniture Solutions | 392.2 | 377.3 | 347.3 | ||||||||||
Specialty and Consumer | 273.5 | 175.7 | 158.3 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 1,882.00 | $ | 1,774.90 | $ | 1,724.10 | |||||||
Depreciation and Amortization: | |||||||||||||
North American Furniture Solutions | $ | 26.8 | $ | 28 | $ | 31.7 | |||||||
ELA Furniture Solutions | 7.6 | 6.6 | 3.7 | ||||||||||
Specialty and Consumer | 8 | 2.9 | 1.8 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 42.4 | $ | 37.5 | $ | 37.2 | |||||||
Operating Earnings (Losses): | |||||||||||||
North American Furniture Solutions | $ | (27.0 | ) | $ | 76.6 | $ | 96.9 | ||||||
ELA Furniture Solutions | 23.1 | 24.7 | 32.1 | ||||||||||
Specialty and Consumer | 4.6 | 15.4 | 15.1 | ||||||||||
Corporate | (26.4 | ) | (1.8 | ) | (6.5 | ) | |||||||
Total | $ | (25.7 | ) | $ | 114.9 | $ | 137.6 | ||||||
Capital Expenditures: | |||||||||||||
North American Furniture Solutions | $ | 28.9 | $ | 33.6 | $ | 20.3 | |||||||
ELA Furniture Solutions | 6.4 | 15.9 | 3.3 | ||||||||||
Specialty and Consumer | 5.5 | 0.7 | 4.9 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 40.8 | $ | 50.2 | $ | 28.5 | |||||||
Total Assets: | |||||||||||||
North American Furniture Solutions | $ | 457 | $ | 427.8 | $ | 389.2 | |||||||
ELA Furniture Solutions | 244.8 | 250.9 | 231.5 | ||||||||||
Specialty and Consumer | 176.5 | 174.3 | 36.5 | ||||||||||
Corporate | 112.6 | 93.5 | 181.9 | ||||||||||
Total | $ | 990.9 | $ | 946.5 | $ | 839.1 | |||||||
Goodwill: | |||||||||||||
North American Furniture Solutions | $ | 135.8 | $ | 136.1 | $ | 104.9 | |||||||
ELA Furniture Solutions | 42.6 | 41.1 | 40.5 | ||||||||||
Specialty and Consumer | 49.8 | 49.8 | 1 | ||||||||||
Corporate | — | — | — | ||||||||||
Total | $ | 228.2 | $ | 227 | $ | 146.4 | |||||||
Revenue from External Customers by Products and Services | ' | ||||||||||||
The following is a summary of net sales by product category for the respective fiscal years indicated. Given that formal product line information is not available for the company as a whole, this summary is intended to represent a reasonable estimate of net sales by product category based on the best information available. | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Net Sales: | |||||||||||||
Systems | $ | 571.6 | $ | 572.9 | $ | 549.5 | |||||||
Seating | 658.2 | 609.8 | 619.8 | ||||||||||
Freestanding and storage | 386.4 | 395 | 334.3 | ||||||||||
Other (1) | 265.8 | 197.2 | 220.5 | ||||||||||
Total | $ | 1,882.00 | $ | 1,774.90 | $ | 1,724.10 | |||||||
(1) “Other” primarily consists of textiles or uncategorized product sales and service sales. | |||||||||||||
Schedule of Revenue by Customer Geographic Area | ' | ||||||||||||
The following is a summary of geographic information for the respective fiscal years indicated. Individual foreign country information is not provided as none of the individual foreign countries in which the company operates are considered material for separate disclosure based on quantitative and qualitative considerations. | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Net Sales: | |||||||||||||
United States | $ | 1,406.30 | $ | 1,291.50 | $ | 1,271.90 | |||||||
International | 475.7 | 483.4 | 452.2 | ||||||||||
Total | $ | 1,882.00 | $ | 1,774.90 | $ | 1,724.10 | |||||||
Schedule of Long-Lived Assets by Geographic Area | ' | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Long-lived assets: | |||||||||||||
United States | $ | 177 | $ | 169.2 | $ | 146.4 | |||||||
International | 35.4 | 29.8 | 18.1 | ||||||||||
Total | $ | 212.4 | $ | 199 | $ | 164.5 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||
31-May-14 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||
The following table provides an analysis of the changes in accumulated other comprehensive loss for the years ended May 31, 2014 and June 1, 2013: | ||||||||||
Year Ended | ||||||||||
(In millions) | 31-May-14 | 1-Jun-13 | 2-Jun-12 | |||||||
Cumulative translation adjustments at beginning of period | (14.0 | ) | (13.0 | ) | (5.9 | ) | ||||
Translation adjustments | 2.9 | (1.0 | ) | (7.1 | ) | |||||
Balance at end of period | (11.1 | ) | (14.0 | ) | (13.0 | ) | ||||
Pension and other post-retirement benefit plans at beginning of period | (110.3 | ) | (127.6 | ) | (98.3 | ) | ||||
Adjustments to pension and other post-retirement benefit plans | (3.1 | ) | 0.5 | — | ||||||
Reclassification to earnings - cost of sales (net of tax $(15.8), $(1.0), $3.5) | 27.6 | 1.8 | (8.5 | ) | ||||||
Reclassification to earnings - operating expenses (net of tax $(35.1), $(7.8), $8.7) | 59 | 15 | (20.8 | ) | ||||||
Balance at end of period | (26.8 | ) | (110.3 | ) | (127.6 | ) | ||||
Total accumulated other comprehensive loss | (37.9 | ) | (124.3 | ) | (140.6 | ) |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||
2012 Action Plan | |||||||||||||
(In millions) | Total Plan | Severance and Outplacement Costs | Building Impairment Costs | ||||||||||
Costs | |||||||||||||
Balance as of May 28, 2011 | $ | — | $ | — | $ | — | |||||||
Restructuring and impairment expenses | 1.6 | 0.2 | 1.4 | ||||||||||
Cash payments | (0.1 | ) | — | (0.1 | ) | ||||||||
Adjustments | (1.3 | ) | — | (1.3 | ) | ||||||||
Balance as of June 2, 2012 | 0.2 | 0.2 | — | ||||||||||
Restructuring and impairment expenses | 1.2 | 0.3 | 0.9 | ||||||||||
Cash payments | (1.0 | ) | (0.5 | ) | (0.5 | ) | |||||||
Adjustments | (0.2 | ) | — | (0.2 | ) | ||||||||
Balance as of June 1, 2013 | $ | 0.2 | $ | — | $ | 0.2 | |||||||
Cash payments | $ | (0.2 | ) | $ | — | $ | (0.2 | ) | |||||
Balance as of May 31, 2014 | $ | — | $ | — | $ | — | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
31-May-14 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
Set forth below is a summary of the quarterly operating results on a consolidated basis for the years ended May 31, 2014, June 1, 2013, and June 2, 2012. | |||||||||||||||||
(In millions, except per share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | Net sales | $ | 468.1 | $ | 470.5 | $ | 455.9 | $ | 487.5 | ||||||||
Gross margin (1) | 170 | 118.9 | 162.9 | 179.1 | |||||||||||||
Net earnings (loss) | 22.5 | (80.6 | ) | 19.4 | 16.6 | ||||||||||||
Earnings (loss) per share-basic (1) | 0.38 | (1.37 | ) | 0.33 | 0.28 | ||||||||||||
Earnings (loss) per share-diluted (1) | 0.38 | (1.37 | ) | 0.33 | 0.28 | ||||||||||||
2013 | Net sales (1) | $ | 449.7 | $ | 441.8 | $ | 423.5 | $ | 460 | ||||||||
Gross Margin | 149.7 | 148.5 | 144.4 | 162.6 | |||||||||||||
Net earnings (1) | 20 | 8.4 | 16.5 | 23.4 | |||||||||||||
Earnings per share-basic (1) | 0.34 | 0.14 | 0.28 | 0.4 | |||||||||||||
Earnings per share-diluted | 0.34 | 0.14 | 0.28 | 0.4 | |||||||||||||
2012 | Net sales (1) | $ | 458.1 | $ | 445.6 | $ | 399.8 | $ | 420.7 | ||||||||
Gross margin (1) | 154.3 | 152.1 | 134.2 | 150.1 | |||||||||||||
Net earnings (1) | 24.6 | 23.7 | 14.9 | 11.9 | |||||||||||||
Earnings per share-basic (1) | 0.42 | 0.41 | 0.26 | 0.21 | |||||||||||||
Earnings per share-diluted | 0.42 | 0.41 | 0.26 | 0.2 | |||||||||||||
Significant_Accounting_and_Rep3
Significant Accounting and Reporting Policies (Details) | 12 Months Ended | |||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 31-May-14 |
USD ($) | USD ($) | USD ($) | GBP (£) | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Number of Weeks in Fiscal Year | '52 weeks | ' | '53 weeks | ' |
Foreign Currency Transaction Gain (Loss), before Tax | $1.20 | $1.30 | $1.30 | ' |
Cash Equivalents, at Carrying Value | 5.6 | 5.9 | ' | ' |
Long-term Purchase Commitment, Amount | 12.7 | ' | ' | ' |
Indefinite-lived intangibles | 40.9 | 62.3 | 39.3 | ' |
Impairment charges | 21.4 | 3.8 | 3.8 | ' |
Impairment of Long-Lived Assets Held-for-use | 4 | ' | 1.4 | ' |
Research and Development Expense | 53.9 | 48.3 | 41 | ' |
Royalty Expense | 12 | 11.6 | 11.7 | ' |
Cooperative Advertising Program Expense | 2 | 2 | 2 | ' |
Derivative Liability, Notional Amount | 26.7 | ' | ' | ' |
Derivative Asset, Notional Amount | ' | ' | ' | £ 15.2 |
Significant_Accounting_and_Rep4
Significant Accounting and Reporting Policies - Schedule of Goodwill and Indefinite-lived Intangibles (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning balance (in usd) | $227 | $146.40 | ' |
Sale of owned dealers | -0.4 | -0.1 | ' |
Goodwill acquired during period | 1 | 80.7 | ' |
Foreign currency translation adjustments | 0.6 | ' | ' |
Impairment charges | 0 | ' | ' |
Ending balance (in usd) | 228.2 | 227 | 146.4 |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Beginning balance (in usd) | 62.3 | 39.3 | ' |
Sale of owned dealers | 0 | 0 | ' |
Indefinite-lived intangible assets acquired during period | 0 | 23 | ' |
Foreign currency translation adjustments | 0 | ' | ' |
Impairment charges | -21.4 | -3.8 | -3.8 |
Ending balance (in usd) | 40.9 | 62.3 | 39.3 |
Goodwill And Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' |
Beginning balance (in usd) | 289.3 | 185.7 | ' |
Sale of owned dealers | -0.4 | -0.1 | ' |
Goodwill and indefinite lived intangible assets acquired during the period | 1 | 103.7 | ' |
Foreign currency translation adjustments | 0.6 | ' | ' |
Impairment charges | -21.4 | ' | ' |
Ending balance (in usd) | $269.10 | $289.30 | $185.70 |
Significant_Accounting_and_Rep5
Significant Accounting and Reporting Policies - Schedule of Finite-Lived Intangible Assets by Major Class (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Long Lived Assets | ' | ' |
Gross carrying value | $67.60 | $66.70 |
Accumulated amortization | 23.4 | 18.7 |
Finite-Lived Intangible Assets, Net | 44.2 | 48 |
Patent and Trademarks | ' | ' |
Long Lived Assets | ' | ' |
Gross carrying value | 19.2 | 21.6 |
Accumulated amortization | 12.7 | 12.3 |
Finite-Lived Intangible Assets, Net | 6.5 | 9.3 |
Customer Relationships | ' | ' |
Long Lived Assets | ' | ' |
Gross carrying value | 43.6 | 40.1 |
Accumulated amortization | 8.3 | 4.8 |
Finite-Lived Intangible Assets, Net | 35.3 | 35.3 |
Other | ' | ' |
Long Lived Assets | ' | ' |
Gross carrying value | 4.8 | 5 |
Accumulated amortization | 2.4 | 1.6 |
Finite-Lived Intangible Assets, Net | $2.40 | $3.40 |
Significant_Accounting_and_Rep6
Significant Accounting and Reporting Policies - Schedule of Finite Lived Intangible Assets, Future Amortization Expense (Details) (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Accounting Policies [Abstract] | ' |
2015 | $4.40 |
2016 | 4.4 |
2017 | 4.4 |
2018 | 4.4 |
2019 | $3.80 |
Significant_Accounting_and_Rep7
Significant Accounting and Reporting Policies - Schedule of Self Insurance Retention Levels (Details) | 12 Months Ended |
31-May-14 | |
Accounting Policies [Abstract] | ' |
General liability and auto liability/physical damage | 1,000,000 |
Workers' compensation and property | 750,000 |
Significant_Accounting_and_Rep8
Significant Accounting and Reporting Policies - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Forward Contracts, USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Other Current Assets | ' | ' |
Derivatives, Fair Value | ' | ' |
Foreign currency forward contracts not designated as hedges | $0.20 | $0.30 |
Other Current Liabilities | ' | ' |
Derivatives, Fair Value | ' | ' |
Foreign currency forward contracts not designated as hedges | $0.10 | $0.30 |
Significant_Accounting_and_Rep9
Significant Accounting and Reporting Policies - Schedule of Derivative Instruments, Gain (loss) in Statement of Financial Performance (Details) (Forward Contracts, Other Expenses (Income), USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Forward Contracts | Other Expenses (Income) | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' |
Foreign currency forward contracts | ($0.10) | $0 | $0.10 |
Recovered_Sheet1
Significant Accounting and Reporting Policies - Phantom (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Number of Weeks in Fiscal Year | '52 weeks | ' | '53 weeks |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Cooperative Advertising Program Expense | $2 | $2 | $2 |
Patent and Trademarks | Minimum | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ' |
Patent and Trademarks | Maximum | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years | ' | ' |
Patents | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ' |
Trademarks | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '6 years | ' | ' |
Customer Relationships | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '13 years | ' | ' |
Machinery and Equipment | Minimum | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Machinery and Equipment | Maximum | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Building | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' | ' |
Leasehold Improvements | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Software | ' | ' | ' |
Schedule of Useful Lives and Amortization [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 12 Months Ended | 26 Months Ended | 0 Months Ended | 5 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 31-May-14 | Sep. 30, 2013 | Mar. 01, 2014 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 02, 2012 | 31-May-14 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 31-May-14 |
Dongguan Sun Hing Steel Furniture Factory LTD | Dongguan Sun Hing Steel Furniture Factory LTD | Maharam Fabric Corporation | Maharam Fabric Corporation | Maharam Fabric Corporation | Maharam Fabric Corporation | Maharam Fabric Corporation | Maharam Fabric Corporation | Posh Office Systems LTD | Posh Office Systems LTD | Wholly-owned Contract Furniture Dealership | Wholly-owned Contract Furniture Dealership | Wholly-owned Contract Furniture Dealership | Wholly-owned Contract Furniture Dealership | |||||
Trade Names | Designs And Patterns | Customer Relationships | Non-compete Agreements | dealerships | dealerships | dealerships | Oklahoma | |||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | $8.20 | ' | $155.80 | $155.80 | ' | ' | ' | ' | $58.90 | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' | ' | ' | 48.8 | ' | ' | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.1 | 4.1 | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment contingent consideration | 1.3 | 0.8 | 0 | 1.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired assets during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.8 | ' | ' | ' | ' | ' |
Acquired liabilities during period | ' | ' | ' | ' | ' | ' | ' | 15.1 | ' | ' | ' | ' | 8.6 | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.9 | ' | ' | ' | ' | ' |
Goodwill | 228.2 | 227 | 146.4 | 228.2 | ' | ' | ' | 80.7 | ' | ' | ' | ' | 34.5 | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets | 0 | 23 | ' | ' | ' | ' | ' | ' | 23 | ' | ' | ' | 19.9 | ' | ' | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.1 | 16 | 0.3 | 8.9 | ' | ' | ' | ' | ' |
Numbers of Business Divested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 1 | 3 | ' |
Gain (Loss) on sale of contract dealerships | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.30 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Schedule of Business Acquisitions, by Acquisition (Details) (USD $) | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | Apr. 29, 2013 | Apr. 29, 2013 |
In Millions, unless otherwise specified | Maharam Fabric Corporation | Maharam Fabric Corporation | |||
Business Acquisition | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | $155.80 | $155.80 |
Accounts receivable | ' | ' | ' | ' | 11.1 |
Inventory | ' | ' | ' | ' | 14.1 |
Other current assets | ' | ' | ' | ' | 4.4 |
Investments in nonconsolidated affiliates | ' | ' | ' | ' | 4.3 |
Other intangible assets | ' | ' | ' | ' | 42.4 |
Goodwill | 228.2 | 227 | 146.4 | ' | 80.7 |
Property | ' | ' | ' | ' | 12.1 |
Long term deferred tax asset | ' | ' | ' | ' | 1.6 |
Other assets | ' | ' | ' | ' | 0.2 |
Total assets acquired | ' | ' | ' | ' | 170.9 |
Accounts payable | ' | ' | ' | ' | 6.5 |
Current deferred tax liabilities | ' | ' | ' | ' | 1.6 |
Accrued compensation and benefits | ' | ' | ' | ' | 4.7 |
Other accrued liabilities | ' | ' | ' | ' | 1 |
Other long term liabilities | ' | ' | ' | ' | 1.3 |
Total liabilities assumed | ' | ' | ' | ' | 15.1 |
Net assets acquired | ' | ' | ' | ' | $155.80 |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Business Combination, Segment Allocation (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Business Combination Segment Allocation | ' | ' |
Total Goodwill | $1 | $80.70 |
Maharam Fabric Corporation | ' | ' |
Business Combination Segment Allocation | ' | ' |
Total Goodwill | 80.7 | ' |
Maharam Fabric Corporation | North American Furniture Solutions | ' | ' |
Business Combination Segment Allocation | ' | ' |
Total Goodwill | 31.9 | ' |
Maharam Fabric Corporation | Specialty And Consumer | ' | ' |
Business Combination Segment Allocation | ' | ' |
Total Goodwill | $48.80 | ' |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 | Apr. 29, 2013 |
Maharam Fabric Corporation | Maharam Fabric Corporation | Designs And Patterns | Specifier And Customer Relationships | Non-compete Agreements | Trade Names | |||
Maharam Fabric Corporation | Maharam Fabric Corporation | Maharam Fabric Corporation | Maharam Fabric Corporation | |||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets acquired during period | $0 | $23 | ' | ' | ' | ' | ' | $23 |
Useful Life | ' | ' | ' | ' | ' | ' | ' | 'Indefinite |
Finite-lived intangible assets acquired during period | ' | ' | ' | ' | 3.1 | 16 | 0.3 | ' |
Useful Life | ' | ' | ' | ' | '5 years | '15 years | '2 years | ' |
Total Intangibles acquired | ' | ' | ' | 42.4 | ' | ' | ' | ' |
Purchase price | ' | ' | $155.80 | $155.80 | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
LIFO Inventory Amount | $20.50 | $22.40 |
FIFO Inventory Amount | $89.60 | $86.90 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventory, Current (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods and work in process | $58.20 | $57.50 |
Raw materials | 20.2 | 18.7 |
Total | $78.40 | $76.20 |
Investments_in_Nonconsolidated2
Investments in Nonconsolidated Affiliates (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
occurence | |||
Schedule of Equity Method Investments | ' | ' | ' |
Number of Equity Method Investments | 4 | ' | ' |
Equity Method Investments | $4.10 | $4.20 | ' |
Equity earnings (loss) from nonconsolidated affiliates, net of tax | 0.1 | -0.1 | 0 |
Kvadrat Maharam Pty Limited | ' | ' | ' |
Schedule of Equity Method Investments | ' | ' | ' |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 2.3 | 2.5 | ' |
Danskina B.V. | ' | ' | ' |
Schedule of Equity Method Investments | ' | ' | ' |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $1.10 | $1.10 | ' |
Investments_in_Nonconsolidated3
Investments in Nonconsolidated Affiliates - Equity Method Investments (Details) | 31-May-14 | Jun. 01, 2013 |
Kvadrat Maharam Arabia DMCC | ' | ' |
Schedule of Equity Method Investments | ' | ' |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Kvadrat Maharam Pty Limited | ' | ' |
Schedule of Equity Method Investments | ' | ' |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Kvadrat Maharam Turkey JSC | ' | ' |
Schedule of Equity Method Investments | ' | ' |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Danskina B.V. | ' | ' |
Schedule of Equity Method Investments | ' | ' |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | |
31-May-14 | Jun. 01, 2013 | |
Line of Credit Facility | ' | ' |
Long-term Debt, Current Maturities | $50,000,000 | $0 |
Leverage Ratio | 350.00% | ' |
Interest Coverage | 400.00% | ' |
Long-term debt | 250,000,000 | 250,000,000 |
Series A Senior Notes | ' | ' |
Line of Credit Facility | ' | ' |
Long-term Debt, Current Maturities | 50,000,000 | 50,000,000 |
Revolving Line of Credit, Foreign | ' | ' |
Line of Credit Facility | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | 5,000,000 | ' |
Line of Credit Facility, Amount Outstanding | 0 | ' |
Line of Credit | ' | ' |
Line of Credit Facility | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | 150,000,000 | ' |
Line of Credit Facility, Expansion Feature, Additional Borrowing Capacity | 75,000,000 | ' |
Line of Credit Facility, Amount Outstanding | $4,900,000 | $7,700,000 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-term Debt Instruments (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Current Maturities | $50 | $0 |
Long-term debt | 250 | 250 |
Long-term Debt, Excluding Current Maturities | 200 | 250 |
Series A Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Current Maturities | 50 | 50 |
Series B Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 150 | 150 |
Debt Securities | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $50 | $50 |
LongTerm_Debt_Schedule_of_Matu
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2015 | $50 |
2016 | 0 |
2017 | 0 |
2018 | 150 |
2019 | 0 |
Thereafter | $50 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Leases [Abstract] | ' | ' | ' |
Rental expense charged to operations | $25.60 | $23 | $20.70 |
Operating_Leases_Schedule_of_F
Operating Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
2015 | $21 |
2016 | 17 |
2017 | 11.8 |
2018 | 9.8 |
2019 | 7.1 |
Thereafter | $18.70 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 01, 2012 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Transfers out to 401(k) plan | ' | $0.90 | ' | ' |
Defined Benefit Plan, Future Amortization of Gain (Loss) | ' | 1.9 | ' | ' |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | ' | 7.20% | 7.40% | ' |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | ' | 4.50% | 4.50% | ' |
Pension Contributions | ' | 50.2 | ' | ' |
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum Percentage | ' | 6.00% | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 50.00% | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% | 6.00% | ' | ' |
Defined Contribution Plan, Cost Recognized | ' | 20.3 | 17 | 6.8 |
Domestic | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 0 | 290 | 316.9 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | ' | -158.2 | -18.8 | 0 |
Employer contributions | ' | 48.8 | 0 | ' |
Transfers out to 401(k) plan | ' | 0.9 | 0 | ' |
Defined Benefit Plan, Accumulated Benefit Obligation | ' | 1.1 | 314.7 | ' |
International | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 94.8 | 84.2 | 72.6 |
Employer contributions | ' | 1.5 | 3.6 | ' |
Transfers out to 401(k) plan | ' | 0 | 0 | ' |
Defined Benefit Plan, Accumulated Benefit Obligation | ' | 102.4 | 88.3 | ' |
Accumulated Other Comprehensive Loss | Domestic | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | ' | -137.7 | ' | ' |
Cost Of Sales | Domestic | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | ' | -49.3 | ' | ' |
Operating Expense | Domestic | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | ' | -108.9 | ' | ' |
Deferred Profit Sharing | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount | ' | 6.4 | 5.3 | 3.4 |
Estimate of Fair Value Measurement | Domestic | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | 0 | 290 | ' |
Estimate of Fair Value Measurement | International | ' | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | $94.80 | $84.20 | ' |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans - Schedule of Funded Status and Amounts Recognized in the Balance Sheet (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Change in plan assets: | ' | ' | ' |
Transfers out to 401(k) plan | ($0.90) | ' | ' |
Components of the amounts recognized in the Consolidated Balance Sheets: | ' | ' | ' |
Non-current liabilities | -18.2 | -39.6 | ' |
Domestic | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 314.7 | 332.7 | ' |
Service cost | 0 | 1.9 | 7 |
Interest cost | 5.2 | 10.9 | 14.4 |
Curtailments | 0 | 0 | ' |
Plan settlements | -331.1 | -40 | ' |
Foreign exchange impact | 0 | 0 | ' |
Actuarial (gain)/loss | 16.8 | 15.6 | ' |
Employee contributions | 0 | 0 | ' |
Expenses paid | -0.4 | 0 | ' |
Benefits paid | -4.1 | -6.4 | ' |
Benefit obligation at end of year | 1.1 | 314.7 | 332.7 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 290 | 316.9 | ' |
Actual return on plan assets | -2.3 | 19.5 | ' |
Foreign exchange impact | 0 | 0 | ' |
Employer contributions | 48.8 | 0 | ' |
Employee contributions | 0 | 0 | ' |
Plan settlements | -331.1 | -40 | ' |
Expenses paid | -0.4 | 0 | ' |
Benefits paid | -4.1 | -6.4 | ' |
Transfers out to 401(k) plan | -0.9 | 0 | ' |
Fair value of plan assets at end of year | 0 | 290 | 316.9 |
Funded status: | ' | ' | ' |
Under funded status at end of year | -1.1 | -24.7 | ' |
Components of the amounts recognized in the Consolidated Balance Sheets: | ' | ' | ' |
Current liabilities | -0.1 | -0.1 | ' |
Non-current liabilities | -1 | -24.6 | ' |
Components of the amounts recognized in accumulated other comprehensive loss before the effect of income taxes: | ' | ' | ' |
Unrecognized net actuarial loss | 0.4 | 140.5 | ' |
Unrecognized prior service cost (credit) | 0 | 0 | ' |
Accumulated other comprehensive loss | 0.4 | 140.5 | ' |
International | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 91.2 | 86.1 | ' |
Service cost | 0 | 0 | 1.3 |
Interest cost | 4.2 | 3.7 | 3.9 |
Curtailments | 0 | 0 | ' |
Plan settlements | 0 | 0 | ' |
Foreign exchange impact | 9.6 | -1.2 | ' |
Actuarial (gain)/loss | 2.3 | 4.5 | ' |
Employee contributions | 0 | 0 | ' |
Expenses paid | 0 | 0 | ' |
Benefits paid | -1.9 | -1.9 | ' |
Benefit obligation at end of year | 105.4 | 91.2 | 86.1 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 84.2 | 72.6 | ' |
Actual return on plan assets | 2.4 | 11.1 | ' |
Foreign exchange impact | 8.6 | -1.2 | ' |
Employer contributions | 1.5 | 3.6 | ' |
Employee contributions | 0 | 0 | ' |
Plan settlements | 0 | 0 | ' |
Expenses paid | 0 | 0 | ' |
Benefits paid | -1.9 | -1.9 | ' |
Transfers out to 401(k) plan | 0 | 0 | ' |
Fair value of plan assets at end of year | 94.8 | 84.2 | 72.6 |
Funded status: | ' | ' | ' |
Under funded status at end of year | -10.6 | -7 | ' |
Components of the amounts recognized in the Consolidated Balance Sheets: | ' | ' | ' |
Current liabilities | 0 | 0 | ' |
Non-current liabilities | -10.6 | -7 | ' |
Components of the amounts recognized in accumulated other comprehensive loss before the effect of income taxes: | ' | ' | ' |
Unrecognized net actuarial loss | 34.3 | 27.9 | ' |
Unrecognized prior service cost (credit) | 0 | 0 | ' |
Accumulated other comprehensive loss | 34.3 | 27.9 | ' |
Post-Retirement Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 9 | 9.8 | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.4 |
Curtailments | 0 | 0 | ' |
Plan settlements | 0 | 0 | ' |
Foreign exchange impact | 0 | 0 | ' |
Actuarial (gain)/loss | -1 | -0.2 | ' |
Employee contributions | 0 | 0 | ' |
Expenses paid | 0 | 0 | ' |
Benefits paid | -0.8 | -0.9 | ' |
Benefit obligation at end of year | 7.5 | 9 | 9.8 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Foreign exchange impact | 0 | 0 | ' |
Employer contributions | 0.8 | 0.9 | ' |
Employee contributions | 0 | 0 | ' |
Plan settlements | 0 | 0 | ' |
Expenses paid | 0 | 0 | ' |
Benefits paid | -0.8 | -0.9 | ' |
Transfers out to 401(k) plan | 0 | 0 | ' |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status: | ' | ' | ' |
Under funded status at end of year | -7.5 | -9 | ' |
Components of the amounts recognized in the Consolidated Balance Sheets: | ' | ' | ' |
Current liabilities | -0.9 | -1 | ' |
Non-current liabilities | -6.6 | -8 | ' |
Components of the amounts recognized in accumulated other comprehensive loss before the effect of income taxes: | ' | ' | ' |
Unrecognized net actuarial loss | 0.3 | 1.3 | ' |
Unrecognized prior service cost (credit) | 0 | 0 | ' |
Accumulated other comprehensive loss | $0.30 | $1.30 | ' |
Employee_Benefit_Plans_Schedul1
Employee Benefit Plans - Schedule of Net Benefit Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Domestic | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service cost | $0 | $1.90 | $7 |
Interest cost | 5.2 | 10.9 | 14.4 |
Expected return on plan assets | -3.6 | -12.1 | -19.3 |
Net amortization | 4.7 | 11.8 | 7.2 |
Curtailment (gain) | 0 | 0 | -1.7 |
Settlement Loss | 158.2 | 18.8 | 0 |
Net periodic benefit cost | 164.5 | 31.3 | 7.6 |
International | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service cost | 0 | 0 | 1.3 |
Interest cost | 4.2 | 3.7 | 3.9 |
Expected return on plan assets | -5.2 | -4.9 | -4.8 |
Net amortization | 1.8 | 1.4 | 0.3 |
Net periodic benefit cost | 0.8 | 0.2 | 0.7 |
Post-Retirement Benefits | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' |
Service cost | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.4 |
Expected return on plan assets | 0 | 0 | 0 |
Net amortization | 0 | 0.1 | 0.1 |
Curtailment (gain) | 0 | 0 | 0 |
Settlement Loss | 0 | 0 | 0 |
Net periodic benefit cost | $0.30 | $0.40 | $0.50 |
Employee_Benefit_Plans_Schedul2
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Domestic | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Net actuarial (gain) loss | $22.90 | $8.20 |
Net amortization, curtailment, and settlements | -163 | -30.6 |
Total recognized in other comprehensive (income) loss | -140.1 | -22.4 |
International | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Net actuarial (gain) loss | 5.2 | -1.7 |
Net amortization, curtailment, and settlements | -1.8 | -1.4 |
Effect of exchange rates on amounts included in accumulated other comprehensive income | 3 | -0.2 |
Total recognized in other comprehensive (income) loss | 6.4 | -3.3 |
Post-Retirement Benefits | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Net actuarial (gain) loss | -1 | -0.3 |
Net amortization, curtailment, and settlements | 0 | -0.1 |
Total recognized in other comprehensive (income) loss | ($1) | ($0.40) |
Employee_Benefit_Plans_Schedul3
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |
Domestic | ' | ' | ' |
The weighted-average used in the determination of net periodic benefit cost: | ' | ' | ' |
Discount rate | 3.43% | 3.34% | 4.75% |
Compensation increase rate | ' | 3.00% | 3.00% |
Expected return on plan assets | ' | 4.20% | 7.00% |
The weighted-average used in the determination of the projected benefit obligations: | ' | ' | ' |
Discount rate | 3.44% | 3.43% | 3.57% |
Compensation increase rate | ' | ' | 3.00% |
International | ' | ' | ' |
The weighted-average used in the determination of net periodic benefit cost: | ' | ' | ' |
Discount rate | 4.40% | 4.20% | 5.40% |
Compensation increase rate | 3.50% | 3.00% | 3.50% |
Expected return on plan assets | 6.00% | 6.00% | 7.00% |
The weighted-average used in the determination of the projected benefit obligations: | ' | ' | ' |
Discount rate | 4.40% | 4.40% | 4.20% |
Compensation increase rate | 3.35% | 3.50% | 3.00% |
Employee_Benefit_Plans_Schedul4
Employee Benefit Plans - Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | 31-May-14 |
Compensation and Retirement Disclosure [Abstract] | ' |
Effect on total fiscal 2014 service and interest cost components, 1 percent increase | $0 |
Effect on total fiscal 2014 service and interest cost components, 1 percent decrease | 0 |
Effect on post-retirement benefit obligation at May 31, 2014, 1 percent increase | 0.2 |
Effect on post-retirement benefit obligation at May 31, 2014, 1 percent decrease | $0.20 |
Employee_Benefit_Plans_Schedul5
Employee Benefit Plans - Schedule of Fair Value and Allocation of Plan Assets (Details) (USD $) | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | US & International Equity Securities | US & International Equity Securities | US & International Equity Securities | US & International Equity Securities | US & International Equity Securities | US & International Equity Securities | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | Domestic | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International | International |
Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Equities | Equities | Fixed Income | Fixed Income | Other And Common Collective Trusts | Other And Common Collective Trusts | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Debt Securities - Corporate | Debt Securities - Corporate | Debt Securities - Corporate | Debt Securities - Corporate | Debt Securities - Corporate | Debt Securities - Corporate | Common Collective Trusts - Equities | Common Collective Trusts - Equities | Common Collective Trusts - Equities | Common Collective Trusts - Equities | Common Collective Trusts - Equities | Common Collective Trusts - Equities | Common Collective Trusts - Fixed Income | Common Collective Trusts - Fixed Income | Common Collective Trusts - Fixed Income | Common Collective Trusts - Fixed Income | Common Collective Trusts - Fixed Income | Common Collective Trusts - Fixed Income | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Equities | Equities | Fixed Income | Fixed Income | Other And Common Collective Trusts | Other And Common Collective Trusts | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Cash And Cash Equivalents | Foreign Government Obligations | Foreign Government Obligations | Foreign Government Obligations | Foreign Government Obligations | Foreign Government Obligations | Foreign Government Obligations | Common Collective Trusts - Balanced | Common Collective Trusts - Balanced | Common Collective Trusts - Balanced | Common Collective Trusts - Balanced | Common Collective Trusts - Balanced | Common Collective Trusts - Balanced | |||||||
Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | Level 1 | Level 1 | Level 2 | Level 2 | Estimate of Fair Value Measurement | Estimate of Fair Value Measurement | |||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Targeted Asset Allocation Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | 0.00% | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | 20.00% | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Plan Assets at Year End | ' | ' | ' | ' | ' | ' | 0.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | 10.00% | 0.00% | 86.00% | 0.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 26.00% | 26.00% | 74.00% | 74.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | $0 | $2.20 | $0 | $0 | $0 | $2.20 | $0 | $290 | $316.90 | $0 | $22.30 | $0 | $267.70 | $0 | $290 | ' | ' | ' | ' | ' | ' | $0 | $12.50 | $0 | $0 | $0 | $12.50 | $0 | $7.60 | $0 | $0 | $0 | $7.60 | $0 | $0 | $0 | $26.50 | $0 | $26.50 | $0 | $0 | $0 | $241.20 | $0 | $241.20 | $94.80 | $84.20 | $72.60 | $0.20 | $0.20 | $94.60 | $84 | $94.80 | $84.20 | ' | ' | ' | ' | ' | ' | $0.20 | $0.20 | $0 | $0 | $0.20 | $0.20 | $0 | $0 | $24.50 | $22 | $24.50 | $22 | $0 | $0 | $70.10 | $62 | $70.10 | $62 |
Employee_Benefit_Plans_Schedul6
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Domestic | ' |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ' |
2015 | $0.10 |
2016 | 0.1 |
2017 | 0.1 |
2018 | 0.1 |
2019 | 0.1 |
2020-2024 | 0.4 |
International | ' |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ' |
2015 | 1.9 |
2016 | 2.4 |
2017 | 2.8 |
2018 | 3 |
2019 | 3.1 |
2020-2024 | 18.7 |
Post-Retirement Benefits | ' |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ' |
2015 | 0.9 |
2016 | 0.9 |
2017 | 0.8 |
2018 | 0.8 |
2019 | 0.7 |
2020-2024 | $2.70 |
Common_Stock_and_Per_Share_Inf2
Common Stock and Per Share Information (Details) | 12 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 2,779,782 | 1,953,450 | 1,917,060 |
Common_Stock_and_Per_Share_Inf3
Common Stock and Per Share Information - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 03, 2012 | Dec. 03, 2011 | Sep. 03, 2011 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |||||||||||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Numerator for both basic and diluted EPS, net earnings (loss) | $16.60 | $19.40 | [1] | ($80.60) | [1] | $22.50 | [1] | $23.40 | [1] | $16.50 | [1] | $8.40 | [1] | $20 | [1] | $11.90 | [1] | $14.90 | [1] | $23.70 | [1] | $24.60 | [1] | ($22.10) | $68.20 | $75.20 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Denominator for basic EPS, weighted-average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,955,487 | 58,425,522 | 58,171,472 | |||||||||||
Potentially dilutive shares resulting from stock plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 418,992 | 285,404 | |||||||||||
Denominator for diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,955,487 | 58,844,514 | 58,456,876 | |||||||||||
[1] | The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $9.10 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 5 months 26 days | ' | ' |
Employee Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | 4 | ' | ' |
Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2.3 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 6.2 | 2 | 1.1 |
Restricted Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 7 months 24 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 0.1 | ' | ' |
Restricted Stock Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 4 months 6 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 4.1 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversion Ratio to Common Stock | 1 | ' | ' |
Performance Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '1 year 5 months 15 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversion Ratio to Common Stock | 1 | ' | ' |
Employee Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Percent of Market Price, Purchase Date | 85.00% | ' | ' |
Minimum | Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '1 year | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '2 years | ' | ' |
Minimum | Restricted Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Minimum | Restricted Stock Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' |
Minimum | Performance Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' |
Maximum | Employee Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | '10 years | ' | ' |
Maximum | Non-qualified Deferred Compensation Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Employer Contribution, Percent of Individual Contribution | ' | 30.00% | ' |
Deferred Compensation Arrangement with Individual, Employer Contribution, Percentage of Deferred Cash Incentive Bonus | ' | 50.00% | ' |
Deferred Compensation Arrangement with Individual, Employer Contribution, Annual Vesting Percentage | ' | 33.33% | ' |
Maximum | Executive Equalization Retirement Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage | 50.00% | ' | ' |
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Percentage of Incentive Cash Bonus | 100.00% | ' | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation - Schedule of Pre-Tax Compensation Expense and Related Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Allocated Share-based Compensation Expense | $11 | $8.10 | $6 |
Tax benefit | 4 | 2.9 | 2.1 |
Employee Stock Purchase Program | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Allocated Share-based Compensation Expense | 0.3 | 0.3 | 0.3 |
Stock Option Plans | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Allocated Share-based Compensation Expense | 2.3 | 3.6 | 2.8 |
Restricted Stock Grants | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Allocated Share-based Compensation Expense | 0.2 | 0.3 | 0.5 |
Restricted Stock Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Allocated Share-based Compensation Expense | 5.2 | 3.2 | 2.4 |
Performance Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Allocated Share-based Compensation Expense | $3 | $0.70 | $0 |
StockBased_Compensation_Schedu1
Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details) (Employee Stock Option, USD $) | 12 Months Ended | |||||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | ||||
Employee Stock Option | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | |||
Risk-free interest rate | 1.62% | [1] | 0.77% | [1] | 1.75% | [1] |
Expected term of options | '5 years 6 months | [2] | '5 years 6 months | [2] | '5 years 6 months | [2] |
Expected volatility | 46.00% | [3] | 47.00% | [3] | 42.00% | [3] |
Dividend yield | 1.74% | [4] | 1.98% | [4] | 0.34% | [4] |
Granted with exercise prices equal to the fair market value of the stock on the date of grant | $10,680,000 | $6,520,000 | $10,150,000 | |||
[1] | Represents the U.S. Treasury yield over the same period as the expected option term. | |||||
[2] | Represents the period of time that options granted are expected to be outstanding. Based on analysis of historical option exercise activity, the company has determined that all employee groups exhibit similar exercise and post-vesting termination behavior. | |||||
[3] | Amount is determined based on analysis of historical price volatility of the company's common stock over a period equal to the expected term of the options. | |||||
[4] | Represents the company's estimated cash dividend yield over the expected term of options. |
StockBased_Compensation_Schedu2
Stock-Based Compensation - Schedule of Stock Option Plan Transactions (Details) (Employee Stock Option, USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 28-May-11 |
Employee Stock Option | ' | ' | ' | ' |
Shares Under Option | ' | ' | ' | ' |
Outstanding at end of period (in shares) | 1,596,984 | 2,411,374 | 2,329,249 | 2,578,590 |
Granted at market | 46,829 | 499,870 | 365,141 | ' |
Exercised | 821,050 | 297,255 | 215,524 | ' |
Forfeited or expired | 40,169 | 120,490 | 398,958 | ' |
Ending vested expected to vest | 1,588,824 | ' | ' | ' |
Exercisable at end of period | 1,122,446 | ' | ' | ' |
Weighted-Average Exercise Prices | ' | ' | ' | ' |
Outstanding at end of period (in usd per share) | $25.47 | $24.59 | $25.06 | $24.62 |
Granted at market | $28.74 | $18.17 | $25.75 | ' |
Exercised | $22.97 | $17.49 | $19.74 | ' |
Forfeited or expired | $27.47 | $24.56 | $25.76 | ' |
Ending vested expected to vest | $25.49 | ' | ' | ' |
Exercisable at end of period | $27.35 | ' | ' | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' | ' |
Weighted average remaining contractual term at end of period (in years) | '4 years 8 months 12 days | '5 years 8 months 12 days | '5 years 8 months 12 days | '5 years 6 months |
Ending vested expected to vest | '4 years 7 months 6 days | ' | ' | ' |
Exercisable at end of period | '3 years 3 months 18 days | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' |
Aggregate intrinsic value at end of period (in millions of usd) | $9.90 | $11.20 | $0.90 | $6.60 |
Ending vested expected to vest | 9.8 | ' | ' | ' |
Exercisable at end of period | $5.10 | ' | ' | ' |
StockBased_Compensation_Schedu3
Stock-Based Compensation - Schedule of Outstanding Stock Options (Details) (USD $) | 12 Months Ended |
31-May-14 | |
Outstanding Stock Options | ' |
Shares | 1,596,984 |
Weighted-average remaining contractual term (in years) | '4 years 8 months 12 days |
Weighted-average exercise prices (in usd per share) | $25.47 |
Exercisable Stock Options | ' |
Shares | 1,122,446 |
Weighted-average exercise prices (in usd per share) | $27.35 |
Option Exercise Price Range, 12.33 to 18.17 | ' |
Outstanding Stock Options | ' |
Shares | 553,690 |
Weighted-average remaining contractual term (in years) | '7 years 1 month 6 days |
Weighted-average exercise prices (in usd per share) | $17.18 |
Exercisable Stock Options | ' |
Shares | 238,880 |
Weighted-average exercise prices (in usd per share) | $15.87 |
Option Exercise Price Range, 25.06 to 30.54 | ' |
Outstanding Stock Options | ' |
Shares | 627,041 |
Weighted-average remaining contractual term (in years) | '4 years 3 months 18 days |
Weighted-average exercise prices (in usd per share) | $27.90 |
Exercisable Stock Options | ' |
Shares | 467,313 |
Weighted-average exercise prices (in usd per share) | $28.33 |
Option Exercise Price Range, 31.84 to 38.13 | ' |
Outstanding Stock Options | ' |
Shares | 416,253 |
Weighted-average remaining contractual term (in years) | '2 years |
Weighted-average exercise prices (in usd per share) | $32.85 |
Exercisable Stock Options | ' |
Shares | 416,253 |
Weighted-average exercise prices (in usd per share) | $32.85 |
StockBased_Compensation_Schedu4
Stock-Based Compensation - Schedule of Restricted Grants (Details) (Restricted Stock, USD $) | 12 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |
Restricted Stock | ' | ' | ' |
Shares | ' | ' | ' |
Outstanding, at beginning of year (in shares) | 67,474 | 83,331 | 70,595 |
Granted | 0 | 0 | 24,323 |
Vested | 3,440 | 14,357 | 7,787 |
Forfeited or expired | 2,000 | 1,500 | 3,800 |
Outstanding, at end of year (in shares) | 62,034 | 67,474 | 83,331 |
Weighted Average Grant-Date Fair Value | ' | ' | ' |
Outstanding, at beginning of year (in usd per share) | $20,450,000 | $19,490,000 | $18,440,000 |
Granted | $0 | $0 | $21,460,000 |
Vested | $15,820,000 | $15,060,000 | $17,560,000 |
Forfeited or expired | $21,980,000 | $18,710,000 | $16,440,000 |
Outstanding, at end of year (in usd per share) | $20,660,000 | $20,450,000 | $19,490,000 |
StockBased_Compensation_Schedu5
Stock-Based Compensation - Schedule of Restricted Stock Unit (RSU) Activity (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 29-May-10 | 28-May-11 |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' |
Released | $20.30 | $16.14 | $26.56 | ' | ' |
Restricted Stock Units | ' | ' | ' | ' | ' |
Share Units | ' | ' | ' | ' | ' |
Outstanding, at beginning of year (in shares) | 579,320 | 321,723 | 285,101 | ' | ' |
Granted | 142,004 | 341,534 | 125,589 | ' | ' |
Forfeited | 10,124 | 66,368 | 10,483 | ' | ' |
Released | 145,094 | 17,569 | 78,484 | ' | ' |
Outstanding, at end of year (in shares) | 566,106 | 579,320 | 321,723 | ' | ' |
Ending vested expected to vest | 550,322 | 547,093 | 308,645 | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' |
Outstanding, at beginning of year (in usd per share) | $21.35 | $21.06 | $21.72 | ' | ' |
Granted | $28.55 | $20.49 | $25.72 | ' | ' |
Forfeited | $22.94 | $19 | $25.13 | ' | ' |
Outstanding, at end of year (in usd per share) | $23.31 | $21.35 | $21.06 | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in millions of usd) | $17,200,000 | $16,000,000 | $5,700,000 | ' | $6,900,000 |
Ending vested expected to vest | $16 | $15 | $5.40 | ' | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' | ' | ' |
Weighted average remaining contractual term (in years) | '1 year 6 months | '1 year 8 months 12 days | '1 year 4 months 24 days | '1 year 6 months | ' |
Ending vested expected to vest | '1 year 6 months | '1 year 7 months 6 days | '1 year 4 months 24 days | ' | ' |
StockBased_Compensation_Schedu6
Stock-Based Compensation - Schedule of Performance-based Stock Units (PSU) Activity (Details) (Performance Share Units, USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | 29-May-10 | 28-May-11 |
Performance Share Units | ' | ' | ' | ' | ' |
Share Units | ' | ' | ' | ' | ' |
Outstanding, at beginning of year (in shares) | 72,500 | 0 | 90,380 | ' | ' |
Granted | 139,722 | 72,500 | 0 | ' | ' |
Forfeited | -2,026 | 0 | -90,380 | ' | ' |
Outstanding, at end of year (in shares) | 210,196 | 72,500 | 0 | ' | ' |
Ending vested expected to vest | 203,752 | 68,823 | 0 | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' |
Outstanding, at beginning of year (in usd per share) | $17.10 | $0 | $25.52 | ' | ' |
Granted | $31.66 | $17.10 | $0 | ' | ' |
Forfeited | $31.74 | $0 | $25.52 | ' | ' |
Outstanding, at end of year (in usd per share) | $26.64 | $17.10 | $0 | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in millions of usd) | $6,600,000 | $2,000,000 | $0 | ' | $0 |
Ending vested expected to vest | $6.40 | $1.90 | $0 | ' | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' | ' | ' |
Weighted average remaining contractual term (in years) | '1 year 9 months 18 days | '2 years 1 month 6 days | '0 years | '2 months 12 days | ' |
Ending vested expected to vest | '1 year 9 months 18 days | '2 years 1 month 6 days | '0 years | ' | ' |
StockBased_Compensation_Schedu7
Stock-Based Compensation - Schedule of Director Share Based Compensation (Details) (Director) | 12 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |
Director | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Options | 0 | 0 | 0 |
Shares of common stock | 12,358 | 15,746 | 18,119 |
Shares through the deferred compensation program | 2,317 | 2,779 | 3,301 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 |
Tax Carryforward | ' | ' |
State and local tax net operating loss carryforwards | $3.20 | $3 |
Operating Loss Carryfoward, Expiration Period | '14 years | ' |
State credits | 0.2 | 0.6 |
Federal net operating loss carryforward | 0.1 | 0.2 |
Foreign tax credits | 0.1 | 0.1 |
Foreign tax net operating loss carryforwards | 9.9 | 9.2 |
Deferred Tax Assets, Valuation Allowance | 8.5 | 9.9 |
Undistributed Earnings of Foreign Subsidiaries | 67.5 | ' |
State And Local Jurisdiction | ' | ' |
Tax Carryforward | ' | ' |
Operating Loss Carryforwards | 49 | ' |
Operating Loss and Tax Credit Carryforwards, Valuation Allowance | 1.7 | ' |
Internal Revenue Service (IRS) | ' | ' |
Tax Carryforward | ' | ' |
Operating Loss Carryforwards | 0.3 | ' |
Foreign Tax Authority | ' | ' |
Tax Carryforward | ' | ' |
Operating Loss Carryforwards | 41.1 | ' |
Operating Loss and Tax Credit Carryforwards, Valuation Allowance | 5.4 | ' |
Carryforward, Tax Deferred Expense, Reserves and Accruals, Other | 6.5 | ' |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | 1.3 | ' |
Deferred Tax Assets, Valuation Allowance | 1.3 | ' |
Minimum | State And Local Jurisdiction | ' | ' |
Tax Carryforward | ' | ' |
Operating Loss Carryfoward, Expiration Period | '1 year | ' |
Tax Credit Carryforward, Expiration Period | '1 year | ' |
Minimum | Foreign Tax Authority | ' | ' |
Tax Carryforward | ' | ' |
Operating Loss Carryfoward, Expiration Period | '5 years | ' |
Tax Credit Carry Foward, Period | '2 years | ' |
Maximum | State And Local Jurisdiction | ' | ' |
Tax Carryforward | ' | ' |
Operating Loss Carryfoward, Expiration Period | '21 years | ' |
Tax Credit Carryforward, Expiration Period | '2 years | ' |
Maximum | Foreign Tax Authority | ' | ' |
Tax Carryforward | ' | ' |
Tax Credit Carry Foward, Period | '6 years | ' |
Capital Loss Carryforward | Foreign Tax Authority | ' | ' |
Tax Carryforward | ' | ' |
Tax Credit Carryforward, Amount | 0.3 | ' |
Foreign tax credits | 0.1 | ' |
Tax Credit Carryforward, Valuation Allowance | $0.10 | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | ($45.10) | $89.90 | $107.60 |
Foreign | 1.7 | 7.3 | 11.9 |
Earnings (loss) before income taxes | ($43.40) | $97.20 | $119.50 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current: Domestic - Federal | $22.20 | $36.40 | $21.80 |
Domestic - State | 4.6 | 5.2 | 2 |
Foreign | 4.8 | 3.9 | 6 |
Current Income Tax Expense (Benefit) | 31.6 | 45.5 | 29.8 |
Deferred: Domestic - Federal | -43.6 | -14.9 | 11.2 |
Domestic - State | -5.6 | -1.4 | 1.4 |
Foreign | -3.6 | -0.3 | 1.9 |
Deferred Income Tax Expense (Benefit) | -52.8 | -16.6 | 14.5 |
Income tax expense (benefit) | ($21.20) | $28.90 | $44.30 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Income taxes computed at the United States Statutory rate of 35% | ($15.20) | $34 | $41.80 |
Change in unrecognized tax benefits | 0.4 | 0.1 | -0.3 |
Foreign statutory rate differences | -0.9 | -1.9 | -1.2 |
Meals and entertainment | 1 | 0.8 | 0.8 |
Manufacturing deduction under the American Jobs Creation Act of 2004 | 3.9 | 4 | 2.9 |
State taxes | -0.9 | 2.5 | 3 |
Repatriated earnings and related foreign tax credits | -0.3 | -0.6 | -0.2 |
Other, net | -1.4 | -2 | 3.3 |
Income tax expense (benefit) | ($21.20) | $28.90 | $44.30 |
Effective tax rate | 48.90% | 29.80% | 37.10% |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Compensation-related accruals | $19.50 | $17.70 |
Accrued pension and post-retirement benefit obligations | 9.7 | 19.4 |
Inventory related | 3.7 | 2.7 |
Reserves for uncollectible accounts and notes receivable | 1.5 | 1.8 |
Other reserves and accruals | 4.6 | 3.9 |
Warranty | 8.5 | 8.2 |
State and local tax net operating loss carryforwards | 3.2 | 3 |
Federal net operating loss carryforward | 0.1 | 0.2 |
State credits | 0.2 | 0.6 |
Foreign tax net operating loss carryforwards | 9.9 | 9.2 |
Foreign tax credits | 0.1 | 0.1 |
Foreign capital loss carryforward | 0.1 | 0.1 |
Financing costs | 1.2 | 2.1 |
Other | 3.4 | 3.6 |
Subtotal | 65.7 | 72.6 |
Valuation allowance | -8.5 | -9.9 |
Total | 57.2 | 62.7 |
Deferred tax liabilities: | ' | ' |
Book basis in property in excess of tax basis | -14.7 | -16.5 |
Intangible assets | -18.1 | -20.5 |
Other | -2.4 | -2.9 |
Total | ($35.20) | ($39.90) |
Income_Taxes_Schedule_of_Unrec
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefits, beginning balance (in usd) | $1.80 | $1.40 | $1.30 |
Increases related to current year income tax positions | 0.5 | 0.4 | ' |
Increases related to prior year income tax positions | 0 | 0 | ' |
Decreases related to prior year income tax positions | 0 | 0.1 | ' |
Decreases related to lapse of applicable statute of limitations | -0.1 | -0.2 | ' |
Decreases related to settlements | 0 | 0 | ' |
Unrecognized tax benefits, ending balance (in usd) | $1.80 | $1.40 | $1.30 |
Income_Taxes_Schedule_of_Unrec1
Income Taxes - Schedule of Unrecognized Ta Benefits, Interest, Penalties and Related Liability (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Interest and penalty expense | $0.20 | $0 | $0 |
Liability for interest and penalties | $0.60 | $0.40 | ' |
Income_Taxes_Phantom_Details
Income Taxes - Phantom (Details) | 12 Months Ended | ||
31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Schedule of Fair Value by Balance Sheet Grouping (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term debt, carrying value | $250 | $250 |
Long-term debt, fair value | $279.20 | $283.50 |
Fair_Valaue_of_Financial_Instr
Fair Valaue of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) (Fair Value Measurements Recurring Basis, USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Total | $17.60 | $15.90 |
Total | 0.1 | 0.3 |
Quoted Prices With Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Foreign currency forward contracts | 0.2 | 0.3 |
Deferred compensation plan | 6.3 | 4.8 |
Asset-Backed Securities | Quoted Prices With Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available-for-sale marketable securities | 0.4 | 0.8 |
Corporate Debt Securities | Quoted Prices With Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available-for-sale marketable securities | 1.2 | 1.7 |
Government Obligations | Quoted Prices With Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available-for-sale marketable securities | 7.9 | 5.1 |
Mortgage-Backed Securities | Quoted Prices With Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Available-for-sale marketable securities | 1.6 | 3.2 |
Foreign Exchange Forward | Quoted Prices With Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Foreign currency forward contracts | $0.10 | $0.30 |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets - Schedule of Unrealized Gain (Loss) on Investments (Details) (USD $) | 31-May-14 | Jun. 01, 2013 |
In Millions, unless otherwise specified | ||
Gain (Loss) on Investments | ' | ' |
Cost | $11.10 | $10.80 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 11.1 | 10.8 |
Asset-Backed Securities | ' | ' |
Gain (Loss) on Investments | ' | ' |
Cost | 0.4 | 0.8 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 0.4 | 0.8 |
Corporate Debt Securities | ' | ' |
Gain (Loss) on Investments | ' | ' |
Cost | 1.2 | 1.7 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 1.2 | 1.7 |
Government Obligations | ' | ' |
Gain (Loss) on Investments | ' | ' |
Cost | 7.9 | 5.1 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 7.9 | 5.1 |
Mortgage-Backed Securities | ' | ' |
Gain (Loss) on Investments | ' | ' |
Cost | 1.6 | 3.2 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | $1.60 | $3.20 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Schedule of Debt Securities Maturities (Details) (USD $) | 31-May-14 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | ' |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $2.90 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 2.9 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 8.1 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 8.1 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 0.1 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 0.1 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 11.1 |
Available-for-sale Securities, Debt Securities | $11.10 |
Supplemental_Disclosures_of_Ca2
Supplemental Disclosures of Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Depreciation expense | $37.80 | $34.40 | $34.40 |
Amortization expense | 4.6 | 3.1 | 2.8 |
Provision for losses on accounts receivable and notes receivable | 1 | 0.6 | 1.6 |
(Gain) Loss on sales of property and dealers | -1.7 | 0.8 | 0.9 |
Deferred income tax expense (benefit) | -52.8 | -16.6 | 14.5 |
Pension expense | 115.4 | 31.9 | 8.8 |
Restructuring and impairment expenses | 26.2 | 1.2 | 5.4 |
Stock-based compensation | 11 | 8.1 | 6 |
Excess tax benefits from stock-based compensation | -1.1 | -0.3 | 0.1 |
Other changes in long-term liabilities | -8.5 | -9.2 | -66.5 |
Other | 1.5 | -2.9 | -1.9 |
Decrease (increase) in assets: | ' | ' | ' |
Accounts receivable | -26.7 | -7.7 | 17.5 |
Inventories | -2.2 | -4.6 | 0.2 |
Prepaid expenses and other | -3.2 | 9.3 | 2.7 |
Increase (decrease) in liabilities: | ' | ' | ' |
Accounts payable | 2.6 | 6 | 4.8 |
Accrued liabilities | 8.3 | 14.2 | -16.4 |
Total changes in current assets and liabilities | -21.2 | 17.2 | 8.8 |
Total adjustments | $112.20 | $68.30 | $14.90 |
Warranties_Guarantees_and_Cont2
Warranties, Guarantees and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Product Warranty Accrual | $24.80 | $22.20 | $17 |
Product Warranty Accrual, Warranties Issued | 20.2 | 23.3 | 24.9 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 0 | 0 | 5 |
Product Warranty Accrual, Payments | -19.8 | -20.7 | -24.7 |
Product Warranty Accrual | 25.2 | 24.8 | 22.2 |
Warranty Length | '12 years | ' | ' |
Unrecorded Unconditional Purchase Obligation | 54.2 | ' | ' |
Performance Guarantee | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 7.5 | ' | ' |
Guarantor Obligations, Current Carrying Value | 0 | 0 | ' |
Indemnification Agreement | ' | ' | ' |
Guarantor Obligations, Current Carrying Value | 0 | 0 | ' |
Financial Standby Letter of Credit | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 4.9 | ' | ' |
Guarantor Obligations, Current Carrying Value | 0 | 0 | ' |
Necessary Maintenance And Repairs | ' | ' | ' |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Loss Contingency, Range of Possible Loss, Minimum | 0 | ' | ' |
Loss Contingency, Range of Possible Loss, Maximum | 3 | ' | ' |
Other Accrued Liabilities | Necessary Maintenance And Repairs | ' | ' | ' |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Loss Contingency Accrual, at Carrying Value | $1.50 | $1.30 | ' |
Minimum | Performance Guarantee | ' | ' | ' |
Guarantor Obligations, Term | 'P1Y | ' | ' |
Maximum | Performance Guarantee | ' | ' | ' |
Guarantor Obligations, Term | 'P3Y | ' | ' |
Warranties_Guarantees_and_Cont3
Warranties, Guarantees, and Contingencies - Phantom (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 | 31-May-14 | Jun. 01, 2013 |
Performance Guarantee | Performance Guarantee | Indemnification Agreement | Indemnification Agreement | Financial Standby Letter of Credit | Financial Standby Letter of Credit | ||
Guarantor Obligations | ' | ' | ' | ' | ' | ' | ' |
Warranty Length | '12 years | ' | ' | ' | ' | ' | ' |
Guarantor Obligations, Current Carrying Value | ' | $0 | $0 | $0 | $0 | $0 | $0 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 03, 2012 | Dec. 03, 2011 | Sep. 03, 2011 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Restructuring and impairment expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.50 | $1.20 | $5.40 | |||||||
Net sales | 487.5 | 455.9 | [1] | 470.5 | [1] | 468.1 | [1] | 460 | [1] | 423.5 | [1] | 441.8 | [1] | 449.7 | [1] | 420.7 | 399.8 | 445.6 | 458.1 | 1,882 | 1,774.90 | 1,724.10 |
Distributor Concentration Risk | Sales Revenue, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | |||||||
Customer Concentration Risk | Sales Revenue, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $102 | ' | ' | |||||||
Unionized Employees Concentration Risk | Workforce Subject to Collective Bargaining Arrangements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | |||||||
[1] | The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
Operating_Segments_Schedule_of
Operating Segments - Schedule of Segment Reporting Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 03, 2012 | Dec. 03, 2011 | Sep. 03, 2011 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | $487.50 | $455.90 | [1] | $470.50 | [1] | $468.10 | [1] | $460 | [1] | $423.50 | [1] | $441.80 | [1] | $449.70 | [1] | $420.70 | $399.80 | $445.60 | $458.10 | $1,882 | $1,774.90 | $1,724.10 |
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42.4 | 37.5 | 37.2 | |||||||
Operating Earnings (Losses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -25.7 | 114.9 | 137.6 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.8 | 50.2 | 28.5 | |||||||
Total Assets | 990.9 | ' | ' | ' | 946.5 | ' | ' | ' | 839.1 | ' | ' | ' | 990.9 | 946.5 | 839.1 | |||||||
Goodwill | 228.2 | ' | ' | ' | 227 | ' | ' | ' | 146.4 | ' | ' | ' | 228.2 | 227 | 146.4 | |||||||
North American Furniture Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,216.30 | 1,221.90 | 1,218.50 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.8 | 28 | 31.7 | |||||||
Operating Earnings (Losses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -27 | 76.6 | 96.9 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.9 | 33.6 | 20.3 | |||||||
Total Assets | 457 | ' | ' | ' | 427.8 | ' | ' | ' | 389.2 | ' | ' | ' | 457 | 427.8 | 389.2 | |||||||
Goodwill | 135.8 | ' | ' | ' | 136.1 | ' | ' | ' | 104.9 | ' | ' | ' | 135.8 | 136.1 | 104.9 | |||||||
ELA Furniture Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 392.2 | 377.3 | 347.3 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.6 | 6.6 | 3.7 | |||||||
Operating Earnings (Losses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.1 | 24.7 | 32.1 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.4 | 15.9 | 3.3 | |||||||
Total Assets | 244.8 | ' | ' | ' | 250.9 | ' | ' | ' | 231.5 | ' | ' | ' | 244.8 | 250.9 | 231.5 | |||||||
Goodwill | 42.6 | ' | ' | ' | 41.1 | ' | ' | ' | 40.5 | ' | ' | ' | 42.6 | 41.1 | 40.5 | |||||||
Specialty and Consumer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 273.5 | 175.7 | 158.3 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 2.9 | 1.8 | |||||||
Operating Earnings (Losses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.6 | 15.4 | 15.1 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.5 | 0.7 | 4.9 | |||||||
Total Assets | 176.5 | ' | ' | ' | 174.3 | ' | ' | ' | 36.5 | ' | ' | ' | 176.5 | 174.3 | 36.5 | |||||||
Goodwill | 49.8 | ' | ' | ' | 49.8 | ' | ' | ' | 1 | ' | ' | ' | 49.8 | 49.8 | 1 | |||||||
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||
Depreciation and Amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||
Operating Earnings (Losses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -26.4 | -1.8 | -6.5 | |||||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||||||
Total Assets | 112.6 | ' | ' | ' | 93.5 | ' | ' | ' | 181.9 | ' | ' | ' | 112.6 | 93.5 | 181.9 | |||||||
Goodwill | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | $0 | |||||||
[1] | The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
Operating_Segments_Revenue_fro
Operating Segments - Revenue from External Customers by Products and Services (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, unless otherwise specified | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 03, 2012 | Dec. 03, 2011 | Sep. 03, 2011 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | ||||||||||
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | $487.50 | $455.90 | [1] | $470.50 | [1] | $468.10 | [1] | $460 | [1] | $423.50 | [1] | $441.80 | [1] | $449.70 | [1] | $420.70 | $399.80 | $445.60 | $458.10 | $1,882 | $1,774.90 | $1,724.10 | |||
Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 571.6 | 572.9 | 549.5 | ||||||||||
Seating | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 658.2 | 609.8 | 619.8 | ||||||||||
Freestanding And Storage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 386.4 | 395 | 334.3 | ||||||||||
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $265.80 | [2] | $197.20 | [2] | $220.50 | [2] | |||||||
[1] | The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. | ||||||||||||||||||||||||
[2] | bOtherb primarily consists of textiles or uncategorized product sales and service sales. |
Operating_Segments_Schedule_of1
Operating Segments - Schedule of Revenue by Customer Geographic Area (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 03, 2012 | Dec. 03, 2011 | Sep. 03, 2011 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |||||||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | $487.50 | $455.90 | [1] | $470.50 | [1] | $468.10 | [1] | $460 | [1] | $423.50 | [1] | $441.80 | [1] | $449.70 | [1] | $420.70 | $399.80 | $445.60 | $458.10 | $1,882 | $1,774.90 | $1,724.10 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,406.30 | 1,291.50 | 1,271.90 | |||||||
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $475.70 | $483.40 | $452.20 | |||||||
[1] | The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
Operating_Segments_Schedule_of2
Operating Segments - Schedule of Long-Lived Assets by Geographic Area (Details) (USD $) | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
In Millions, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets | ' | ' | ' |
Long-Lived Assets | $212.40 | $199 | $164.50 |
United States | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' |
Long-Lived Assets | 177 | 169.2 | 146.4 |
International | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' |
Long-Lived Assets | $35.40 | $29.80 | $18.10 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Cumulative translation adjustments [Roll Forward] | ' | ' | ' |
Cumulative translation adjustments at beginning of period | ($14) | ($13) | ($5.90) |
Translation adjustments | 2.9 | -1 | -7.1 |
Balance at end of period | -11.1 | -14 | -13 |
Pension and other post-retirement benefit plans [Roll Forward] | ' | ' | ' |
Pension and other post-retirement benefit plans at beginning of period | -110.3 | -127.6 | -98.3 |
Adjustments to pension and other post-retirement benefit plans | -3.1 | 0.5 | 0 |
Balance at end of period | -26.8 | -110.3 | -127.6 |
Total accumulated other comprehensive loss | -37.9 | -124.3 | -140.6 |
Cost Of Sales | ' | ' | ' |
Pension and other post-retirement benefit plans [Roll Forward] | ' | ' | ' |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | 27.6 | 1.8 | -8.5 |
Operating Expense | ' | ' | ' |
Pension and other post-retirement benefit plans [Roll Forward] | ' | ' | ' |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | $59 | $15 | ($20.80) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Phantom (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Cost Of Sales | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Pension reclassifications to earnings | ($15.80) | ($1) | $3.50 |
Operating Expense | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Pension reclassifications to earnings | ($35.10) | ($7.80) | $8.70 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-12 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
employee | ||||
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' |
Impairment charges | ' | $21.40 | $3.80 | $3.80 |
Restructuring expenses | ' | 1.1 | ' | ' |
Impairment of Long-Lived Assets Held-for-use | ' | $4 | ' | $1.40 |
Restructuring and Related Cost, Number of Positions Eliminated | 70 | ' | ' | ' |
Restructuring_Charges_Schedule
Restructuring Charges - Schedule of Restructuring and Related Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring and impairment expenses | $26.50 | $1.20 | $5.40 |
Restructuring 2012 Plan | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring reserve, beginning balance | ' | 0.2 | 0 |
Restructuring and impairment expenses | ' | 1.2 | 1.6 |
Cash payments | 0.2 | 1 | 0.1 |
Adjustments | ' | -0.2 | -1.3 |
Restructuring Reserve, Current | ' | 0.2 | ' |
Restructuring reserve, ending balance | 0 | ' | 0.2 |
Severance and Outplacement Costs | Restructuring 2012 Plan | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring reserve, beginning balance | ' | 0.2 | 0 |
Restructuring and impairment expenses | ' | 0.3 | 0.2 |
Cash payments | 0 | 0.5 | 0 |
Adjustments | ' | 0 | 0 |
Restructuring Reserve, Current | ' | 0 | ' |
Restructuring reserve, ending balance | 0 | ' | 0.2 |
Building Impairment Costs | Restructuring 2012 Plan | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring reserve, beginning balance | ' | 0 | 0 |
Restructuring and impairment expenses | ' | 0.9 | 1.4 |
Cash payments | 0.2 | 0.5 | 0.1 |
Adjustments | ' | -0.2 | -1.3 |
Restructuring Reserve, Current | ' | 0.2 | ' |
Restructuring reserve, ending balance | $0 | ' | $0 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 03, 2012 | Dec. 03, 2011 | Sep. 03, 2011 | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Net sales | $487.50 | $455.90 | [1] | $470.50 | [1] | $468.10 | [1] | $460 | [1] | $423.50 | [1] | $441.80 | [1] | $449.70 | [1] | $420.70 | $399.80 | $445.60 | $458.10 | $1,882 | $1,774.90 | $1,724.10 | |||||
Gross margin | 179.1 | 162.9 | 118.9 | 170 | 162.6 | [1] | 144.4 | [1] | 148.5 | [1] | 149.7 | [1] | 150.1 | 134.2 | 152.1 | 154.3 | 631 | 605.2 | 590.6 | ||||||||
Net earnings (loss) | $16.60 | $19.40 | [1] | ($80.60) | [1] | $22.50 | [1] | $23.40 | [1] | $16.50 | [1] | $8.40 | [1] | $20 | [1] | $11.90 | [1] | $14.90 | [1] | $23.70 | [1] | $24.60 | [1] | ($22.10) | $68.20 | $75.20 | |
Earnings (loss) per share-basic (in usd per share) | $0.28 | [1] | $0.33 | [1] | ($1.37) | [1] | $0.38 | [1] | $0.40 | [1] | $0.28 | [1] | $0.14 | [1] | $0.34 | [1] | $0.21 | [1] | $0.26 | [1] | $0.41 | [1] | $0.42 | [1] | ($0.37) | $1.17 | $1.29 |
Earnings (loss) per share-diluted (in usd per share) | $0.28 | $0.33 | ($1.37) | $0.38 | $0.40 | $0.28 | $0.14 | $0.34 | $0.20 | $0.26 | $0.41 | $0.42 | ($0.37) | $1.16 | $1.29 | ||||||||||||
[1] | The sum of the quarters does not equal the annual balance reflected in the Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 31-May-14 | Jun. 01, 2013 | Jul. 21, 2014 | Jul. 29, 2014 | Jul. 28, 2014 |
Line of Credit | Line of Credit | Amendment And Restatement Of Credit Facility | Acquisition Of Design Within Reach (DWR) | Acquisition Of Design Within Reach (DWR) | |
Line of Credit | |||||
Revolving Credit Facility | |||||
Subsequent Event | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | $150,000,000 | ' | $250,000,000 | ' | ' |
Line of Credit Facility, Expansion Feature, Additional Borrowing Capacity | 75,000,000 | ' | 125,000,000 | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | 83.00% |
Business Combination, Consideration Transferred | ' | ' | ' | ' | 155,000,000 |
Business Combination, Purchase Price Adjustment Period, Post-Closing | ' | ' | ' | '60 days | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | ' | ' | ' | ' | 10,000,000 |
Line of Credit Facility, Amount Outstanding | 4,900,000 | 7,700,000 | ' | ' | 127,000,000 |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | 3.25% |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | $112,400,000 |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | 31-May-14 | Jun. 01, 2013 | Jun. 02, 2012 | |||
Allowance for Doubtful Accounts, Current | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | $3.90 | [1] | $4.10 | [1] | $4.10 | [1] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1 | [1] | 0.4 | [1] | 1.6 | [1] |
Valuation Allowances and Reserves, Deductions | -1.5 | [1],[2] | -0.6 | [1],[2] | -1.6 | [1],[2] |
Valuation Allowances and Reserves, Ending Balance | 3.4 | [1] | 3.9 | [1] | 4.1 | [1] |
Sales Returns and Allowances | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 0.5 | [3] | 0.3 | [3] | 0.4 | [3] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0.1 | [3] | 0.2 | [3] | 0 | [3] |
Valuation Allowances and Reserves, Deductions | 0 | [2],[3] | 0 | [2],[3] | -0.1 | [2],[3] |
Valuation Allowances and Reserves, Ending Balance | 0.6 | [3] | 0.5 | [3] | 0.3 | [3] |
Allowance for Doubtful Accounts, Noncurrent | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 0.2 | 0.2 | 0.3 | |||
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | 0 | 0 | |||
Valuation Allowances and Reserves, Deductions | -0.1 | [2] | 0 | [2] | -0.1 | [2] |
Valuation Allowances and Reserves, Ending Balance | 0.1 | 0.2 | 0.2 | |||
Valuation Allowance of Deferred Tax Assets | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 9.9 | 10.3 | 11.6 | |||
Valuation Allowances and Reserves, Charged to Cost and Expense | -1.8 | -0.5 | -0.7 | |||
Valuation Allowances and Reserves, Deductions | 0.4 | [2] | 0.1 | [2] | -0.6 | [2] |
Valuation Allowances and Reserves, Ending Balance | $8.50 | $9.90 | $10.30 | |||
[1] | Activity under the bCharges to expense or net salesb column are recorded within selling, general and administrative expenses. | |||||
[2] | Represents amounts written off, net of recoveries and other adjustments. Includes effects of foreign translation. | |||||
[3] | Activity under the bCharges to expenses or net salesb column are recorded within net sales. |