Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 29, 2015 | Oct. 05, 2015 | |
Document Entity Information [Abstract] | ||
Entity Registrant Name | MILLER HERMAN INC | |
Entity Central Index Key | 66,382 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 29, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --05-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 59,870,314 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 565.4 | $ 509.7 |
Cost of sales | 348.6 | 324.1 |
Gross margin | 216.8 | 185.6 |
Operating expenses: | ||
Selling, general, and administrative | 143.1 | 126.7 |
Design and research | 18.6 | 16.7 |
Total operating expenses | 161.7 | 143.4 |
Operating earnings | 55.1 | 42.2 |
Other expenses: | ||
Interest expense | 3.9 | 4.7 |
Other, net | 0.5 | 0 |
Earnings before income taxes and equity income | 50.7 | 37.5 |
Income tax expense | 17 | 12.4 |
Equity earnings from nonconsolidated affiliates, net of tax | 0.1 | 0.1 |
Net earnings | 33.8 | 25.2 |
Net earnings attributable to noncontrolling interests | 0.3 | 0 |
Net earnings attributable to Herman Miller, Inc. | $ 33.5 | $ 25.2 |
Earnings per share — basic | $ 0.56 | $ 0.43 |
Earnings per share — diluted | 0.56 | 0.42 |
Dividends declared, per share | $ 0.148 | $ 0.140 |
Other comprehensive income, net of tax | ||
Foreign currency translation adjustments | $ (3.5) | $ (0.5) |
Pension and post-retirement liability adjustments | 0.9 | 0.4 |
Other comprehensive (loss) | (2.6) | (0.1) |
Comprehensive income | 31.2 | 25.1 |
Comprehensive income attributable to noncontrolling interests | 0.3 | 0 |
Comprehensive income attributable to Herman Miller, Inc. | $ 30.9 | $ 25.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 52 | $ 63.7 |
Marketable securities | 5.7 | 5.7 |
Accounts and notes receivable, net | 202.2 | 189.6 |
Inventories, net | 136.9 | 129.6 |
Prepaid expenses and other | 74.7 | 74.9 |
Total current assets | 471.5 | 463.5 |
Property and equipment, at cost | 883.9 | 868.6 |
Less — accumulated depreciation | (631) | (619.1) |
Net property and equipment | 252.9 | 249.5 |
Goodwill | 303 | 303.1 |
Indefinite-lived intangibles | 85.2 | 85.2 |
Other amortizable intangibles, net | 50.9 | 52.3 |
Other noncurrent assets | 33.5 | 34.6 |
Total Assets | 1,197 | 1,188.2 |
Current Liabilities: | ||
Accounts payable | 151.6 | 164.7 |
Accrued compensation and benefits | 70.7 | 66.6 |
Accrued warranty | 27 | 26.8 |
Other accrued liabilities | 107 | 92.8 |
Total current liabilities | 356.3 | 350.9 |
Long-term debt | 268 | 290 |
Pension and post-retirement benefits | 27.1 | 27.8 |
Other liabilities | 62.4 | 61 |
Total Liabilities | 713.8 | 729.7 |
Redeemable noncontrolling interests | 31.5 | 30.4 |
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, 59,860,070 and 59,694,611 shares issued and outstanding in 2016 and 2015, respectively) | 12 | 11.9 |
Additional paid-in capital | 137.3 | 135.1 |
Retained earnings | 361.8 | 338 |
Accumulated other comprehensive loss | (58.8) | (56.2) |
Key executive deferred compensation plans | (1.2) | (1.2) |
Herman Miller, Inc. Stockholders' Equity | 451.1 | 427.6 |
Noncontrolling Interests | 0.6 | 0.5 |
Total Stockholders' Equity | 451.7 | 428.1 |
Total Liabilities, Redeemable Noncontrolling Interests, and Stockholders' Equity | $ 1,197 | $ 1,188.2 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Aug. 29, 2015 | May. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock Value | $ 0 | $ 0 |
Preferred stock Shares Authorized | 10,000,000 | 10,000,000 |
Preferred stock Shares Issued | 0 | 0 |
Common Stock Par Value | $ 0.20 | $ 0.20 |
Common stock Shares Authorized | 240,000,000 | 240,000,000 |
Common Stock, Shares, Outstanding | 59,860,070 | 59,694,611 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net earnings | $ 33.8 | $ 25.2 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 13.7 | 12 |
Stock-based compensation | 4 | 3 |
Excess tax benefits from stock-based compensation | (0.9) | (0.3) |
Pension and post-retirement expenses | 0.4 | 0.3 |
Deferred taxes | (3.9) | (2.8) |
Other, net | 0.8 | (0.2) |
(Increase) decrease in current assets | (26.6) | 7.1 |
Increase (decrease) in current liabilities | 9 | (2) |
Increase (decrease) in non-current liabilities | 3 | (0.3) |
Net Cash Provided by Operating Activities | 33.3 | 42 |
Cash Flows from Investing Activities: | ||
Proceeds from sales of property | 3 | 0 |
Marketable securities sales | 0 | 0.2 |
Acquisitions, net of cash received | 0 | (154) |
Capital expenditures | (16.6) | (8.2) |
Other, net | 0.5 | (0.6) |
Net Cash Used in Investing Activities | (13.1) | (162.6) |
Cash Flows from Financing Activities: | ||
Dividends paid | (8.4) | (8.3) |
Proceeds from issuance of long-term debt | 204.8 | 184 |
Payments of long-term debt | (226.8) | (84) |
Common stock issued | 0.9 | 1 |
Common stock repurchased and retired | (2.4) | (1.2) |
Excess tax benefits from stock-based compensation | 0.9 | 0.3 |
Purchase of noncontrolling interests | 0 | (5.5) |
Other, net | (0.1) | 0.1 |
Net Cash Provided by (Used in) Financing Activities | (31.1) | 86.4 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (0.8) | (0.6) |
Net Decrease in Cash and Cash Equivalents | (11.7) | (34.8) |
Cash and Cash Equivalents, Beginning of Period | 63.7 | 101.5 |
Cash and Cash Equivalents, End of Period | $ 52 | $ 66.7 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Key Executive Deferred Compensation | Noncontrolling Interests |
Net income attributable to noncontrolling interests | $ 0 | $ 0 | ||||||
Balance at beginning of year at May. 31, 2014 | $ 0 | $ 11.9 | $ 122.4 | $ 277.4 | $ (37.9) | $ 1.7 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase and retirement of common stock | (1.2) | |||||||
Restricted stock units released | 0 | 0.6 | ||||||
Stock-based compensation expense | 2.9 | |||||||
Excess tax benefit for stock-based compensation | 0.2 | |||||||
Restricted stock units released | 0.1 | |||||||
Employee stock purchase plan issuances | 0.4 | |||||||
Net income attributable to Herman Miller, Inc. | $ 25.2 | 25.2 | ||||||
Dividends declared, per share | $ 0.140 | |||||||
Dividends declared on common stock (per share - 2016: $0.148; 2015; $0.140) | (8.4) | |||||||
Other comprehensive loss | $ (0.1) | (0.1) | ||||||
Noncontrolling interests related to DWR acquisition | 5.8 | |||||||
Purchase of noncontrolling interests | (5.8) | |||||||
Balance at end of period at Aug. 30, 2014 | 391.8 | 0 | 11.9 | 125.4 | 294.2 | (38) | (1.7) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interests redemption value adjustment | 0 | |||||||
Stockholders' Equity Attributable to Parent | 391.8 | |||||||
Stockholders' Equity Attributable to Parent | 427.6 | |||||||
Net income attributable to noncontrolling interests | 0.3 | 0.1 | ||||||
Balance at beginning of year at May. 30, 2015 | 428.1 | 0 | 11.9 | 135.1 | 338 | (56.2) | 1.2 | 0.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Repurchase and retirement of common stock | (2.4) | |||||||
Restricted stock units released | 0.1 | 0.3 | ||||||
Stock-based compensation expense | 2.5 | |||||||
Excess tax benefit for stock-based compensation | 0.6 | |||||||
Restricted stock units released | 0.8 | |||||||
Employee stock purchase plan issuances | 0.4 | |||||||
Net income attributable to Herman Miller, Inc. | $ 33.5 | 33.5 | ||||||
Dividends declared, per share | $ 0.148 | |||||||
Dividends declared on common stock (per share - 2016: $0.148; 2015; $0.140) | (8.9) | |||||||
Other comprehensive loss | $ (2.6) | (2.6) | ||||||
Noncontrolling interests related to DWR acquisition | 0 | |||||||
Purchase of noncontrolling interests | 0 | |||||||
Balance at end of period at Aug. 29, 2015 | 451.7 | $ 0 | $ 12 | $ 137.3 | 361.8 | $ (58.8) | $ (1.2) | $ 0.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Noncontrolling interests redemption value adjustment | $ (0.8) | |||||||
Stockholders' Equity Attributable to Parent | $ 451.1 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Aug. 29, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | BASIS OF PRESENTATION The condensed consolidated financial statements have been prepared by Herman Miller, Inc. (“the company”) in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Management believes the disclosures made in this document are adequate with respect to interim reporting requirements. The accompanying unaudited condensed consolidated financial statements, taken as a whole, contain all adjustments which are of a normal recurring nature necessary to present fairly the financial position of the company as of August 29, 2015 . Operating results for the three months ended August 29, 2015 , are not necessarily indicative of the results that may be expected for the year ending May 28, 2016 . It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the company's Form 10-K filing for the year ended May 30, 2015 . |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Aug. 29, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles | NEW ACCOUNTING STANDARDS Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Revenue from Contracts with Customers The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The standard allows for two adoption methods, a full retrospective or modified retrospective approach. June 3, 2018 The company is currently evaluating the possible adoption methodologies and the implications of adoption on our consolidated financial statements. Simplifying the Measurement of Inventory Under the updated standard, an entity should measure inventory that is measured using either the first-in, first-out ("FIFO") or average cost methods at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The updated standard should be applied prospectively. June 4, 2017 The company is currently evaluating the impact of adopting this guidance. Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs The standard update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability, rather than as an asset. For debt issuance costs related to line-of-credit arrangements, the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the issuance costs over the term of the line-of-credit arrangement. The standard should be applied on a retrospective basis. May 29, 2016 Adoption of this guidance is not expected to have a material impact on the consolidated financial statements. Intangibles - Goodwill and Other - Internal-Use Software Customer's Accounting for Fees Paid in a Cloud Computing Arrangement The standard provides guidance regarding whether a cloud computing arrangement includes a software license. The customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The updated standard can be applied either prospectively or retrospectively. May 29, 2016 The company is currently evaluating the impact of adopting this guidance. |
Fiscal Year
Fiscal Year | 3 Months Ended |
Aug. 29, 2015 | |
Fiscal Year [Abstract] | |
Fiscal Year | FISCAL YEAR The company's fiscal year ends on the Saturday closest to May 31. Fiscal 2016, the year ending May 28, 2016 , and fiscal 2015, the year ended May 30, 2015 , each contain 52 weeks. The first quarters of fiscal 2016 and fiscal 2015 each contained 13 weeks. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Aug. 29, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Design Within Reach Acquisition 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 acquisition of DWR advances the company's strategy of being both an industry brand and a consumer brand by expanding the company's reach into the consumer sector. The company purchased an ownership interest in DWR equal to approximately 81 percent for $155.2 million in cash. The acquisition was financed by using a combination of existing cash and $127.0 million of borrowings on the company's available, unsecured credit facility. The estimated future tax benefits resulting from the transaction were approximately $10 million as of the date of acquisition. Additionally, certain senior management of DWR received fully-vested stock options, with a value of $1.7 million , in the equity of a newly-formed consumer-facing subsidiary that DWR merged into as a result of the transaction. These fully-vested equity awards are recorded in the Condensed Consolidated Balance Sheet within "Redeemable noncontrolling interests". Subsequent to the initial transaction, the company acquired an additional 4 percent of DWR stock from the remaining public shareholders for approximately $5.8 million in cash, all of which was paid during the first and second quarters of fiscal 2015. The remaining 15 percent of DWR stock was contributed by DWR executives into the newly formed consumer business subsidiary and the company contributed the assets of the existing Herman Miller Consumer business. After these transactions, the redeemable noncontrolling interests in the newly formed subsidiary, known as Herman Miller Consumer Holdings, Inc. ("HMCH"), were approximately 7 percent . The remaining HMCH shareholders have a put option to require the company to purchase their remaining interest over a five-year period from the date of issuance of such shares. As a result, these noncontrolling interests are not included within Stockholders' Equity within the Condensed Consolidated Balance Sheets, but rather are included within Redeemable noncontrolling interests. DWR acquisition-related expenses were $2.2 million during fiscal 2015. $2.0 million of these expenses were recorded in the first quarter of fiscal 2015. These expenses included legal and professional services fees. The following table summarizes the fair values of the assets acquired and the liabilities assumed from the acquisition. Assets Acquired and Liabilities Assumed on July 28, 2014 (In millions) Fair Value Purchase price $ 155.2 Fair value of the assets acquired: Cash 1.2 Accounts receivable 2.2 Inventory 47.4 Current deferred tax asset 1.5 Other current assets 5.5 Goodwill 75.6 Other intangible assets 68.5 Property 32.0 Other long term assets 2.4 Total assets acquired 236.3 Fair value of liabilities assumed: Accounts payable 20.8 Accrued compensation and benefits 1.6 Other accrued liabilities 12.3 Long term deferred tax liability 14.5 Other long term liabilities 0.4 Total liabilities assumed 49.6 Redeemable noncontrolling interests 25.7 Noncontrolling interests 5.8 Net assets acquired $ 155.2 The goodwill stemming from the transaction in the amount of $75.6 million was recorded as "Goodwill" in the Condensed Consolidated Balance Sheet and allocated to the Consumer reportable segment. The goodwill recognized is attributable primarily to the assembled workforce and expected synergies from DWR and the total amount of this goodwill is not deductible for tax purposes. Other intangible assets acquired as a result of the acquisition of DWR were valued at $68.5 million . These amounts are reflected in the values presented in the following table: Intangible Assets Acquired from the DWR Acquisition (In millions) Fair Value Useful Life Trade Names and Trademarks $ 55.1 Indefinite Exclusive Distribution Agreements 0.2 1.5 years Customer Relationships 12.0 10 - 16 years Product Development Designs 1.2 7 years Total Intangible Assets Acquired $ 68.5 |
Inventories
Inventories | 3 Months Ended |
Aug. 29, 2015 | |
Inventories [Abstract] | |
Inventory Disclosure | INVENTORIES, NET (In millions) August 29, 2015 May 30, 2015 Finished goods $ 112.6 $ 106.5 Raw materials 24.3 23.1 Total $ 136.9 $ 129.6 Inventories are valued at the lower of cost or market and include material, labor, and overhead. The inventories of the majority of domestic manufacturing subsidiaries 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 ("FIFO") |
Goodwill and Indefinite-lived I
Goodwill and Indefinite-lived Intangibles | 3 Months Ended |
Aug. 29, 2015 | |
Goodwill and Indefinite-lived Intangibles [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND INDEFINITE-LIVED INTANGIBLES Goodwill and other indefinite-lived intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following as of August 29, 2015 and May 30, 2015 : (In millions) Goodwill Indefinite-lived Intangible Assets Total Goodwill and Indefinite-lived Intangible Assets May 30, 2015 $ 303.1 $ 85.2 $ 388.3 Foreign currency translation adjustments (0.1 ) — (0.1 ) August 29, 2015 $ 303.0 $ 85.2 $ 388.2 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Aug. 29, 2015 | |
Employee Benefit Plans [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | EMPLOYEE BENEFIT PLANS Components of Net Periodic Benefit Costs Three Months Ended Pension Benefits (In millions) August 29, 2015 August 30, 2014 International: Interest cost $ 1.0 $ 1.2 Expected return on plan assets (1.4 ) (1.5 ) Net amortization loss 0.7 0.5 Net periodic benefit cost $ 0.3 $ 0.2 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Aug. 29, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table reconciles the numerators and denominators used in the calculations of basic and diluted earnings per share (EPS). Three Months Ended August 29, 2015 August 30, 2014 Numerators : Numerator for both basic and diluted EPS, net earnings attributable to Herman Miller, Inc. - in millions $ 33.5 $ 25.2 Denominators : Denominator for basic EPS, weighted-average common shares outstanding 59,733,924 59,295,859 Potentially dilutive shares resulting from stock plans 497,141 615,993 Denominator for diluted EPS 60,231,065 59,911,852 Antidilutive equity awards not included in weighted-average common shares - diluted 643,782 709,206 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. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Aug. 29, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The company's stock-based compensation expense for the three month periods ended August 29, 2015 and August 30, 2014 was $4.0 million and $3.0 million , respectively. The related income tax effect for the three month periods ended August 29, 2015 and August 30, 2014 was $1.4 million and $1.1 million , respectively. Stock-based compensation expense recognized in the Condensed Consolidated Statements of Comprehensive Income for the three month periods ended August 29, 2015 and August 30, 2014 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. Forfeitures are estimated based on historical experience. For the three month period ended August 29, 2015 , the company issued 17,390 shares of common stock related to the exercise of stock options, 160,319 shares of common stock related to the vesting of restricted stock units, and 55,825 shares of common stock related to the vesting of performance share units. For the three month period ended August 30, 2014 , the company issued 30,878 shares of common stock related to the exercise of stock options, 112,615 shares of common stock related to the vesting of restricted stock units, and no shares of common stock related to the vesting of performance share units. Stock Option Plans The company has stock option plans under which options to purchase the company's stock are granted to employees, directors, and consultants 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, most options become exercisable between one year and three years from date of grant and expire 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. The company estimates the issuance date fair value of stock options on the date of grant using the Black-Scholes model. Herman Miller Consumer Holdings Stock (HMCH) Option Plan Certain employees were granted options to purchase stock of HMCH at a price not less than the market price of HMCH common stock on the date of grant. For the grants of options under the award program, options are potentially exercisable between one year and five years from the date of grant and expire at the end of the window period that follows the fifth anniversary of the grant date. Vesting is based on the performance of HMCH over a period of five years . These options have been classified as liability awards as the holders have the right to put the underlying shares to the company upon exercise. Given this, the awards are measured at fair value at the end of each reporting period and compensation expense is adjusted accordingly to reflect the fair value over the requisite service period. The company estimates the issuance date fair value of HMCH stock options on the date of grant, and at the end of each reporting period, using the Black-Scholes model. 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. The company recognizes pre-tax compensation expense related to the market value discount. 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 compensation expense for these awards is based on the closing stock price on the date of grant. The company recognizes the related compensation expense on a straight-line basis over the requisite service period. Restricted Stock Units The company grants restricted stock units to certain key employees. The awards generally cliff-vest after a three or five -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 issued, free of restrictions, after the vesting period. The compensation expense for these awards is based on the closing stock price on the date of grant. Compensation expense related to these awards is recognized over the requisite service period. Dividend equivalent awards are credited quarterly. The units do not entitle participants to the rights of shareholders of common stock, such as voting rights, until shares are issued after the vesting period. Performance Share Units The company has granted performance share units to certain key employees. 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 or the company's financial performance based on certain total shareholder return results as compared to a selected group of peer companies. 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Aug. 29, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES The effective tax rates for the three month periods ended August 29, 2015 and August 30, 2014 , were 33.6 percent and 33.0 percent , respectively. The company's United States federal statutory rate is 35 percent . The current year rate is lower than the statutory rate primarily due to the manufacturing deduction under the American Jobs Creation Act of 2004 ("AJCA") and the mix of earnings in taxing jurisdictions that have rates that are lower than the United States statutory rate. The effective rate in the prior year was lower than the statutory rate due to the release of a valuation allowance against a foreign deferred tax asset related to financing costs as well as due to the manufacturing deduction under the AJCA. The company had income tax accruals associated with uncertain tax benefits totaling $1.8 million and $1.3 million as of August 29, 2015 and August 30, 2014 , respectively. The company recognizes interest and penalties related to uncertain tax benefits through income tax expense in its Condensed Consolidated Statement of Comprehensive Income. Interest and penalties recognized in the company's Condensed Consolidated Statement of Comprehensive Income for the three month periods ended August 29, 2015 and August 30, 2014 were negligible . The company's recorded liability for potential interest and penalties related to uncertain tax benefits totaled $1.1 million and $ 0.5 million as of August 29, 2015 and August 30, 2014 , respectively. The company is subject to periodic audits by domestic and foreign tax authorities. Currently, the company is undergoing routine periodic audits in both domestic and foreign tax jurisdictions. It is reasonably possible that the amounts of unrecognized tax benefits could change in the next twelve months as a result of the audits. Tax payments related to these audits, if any, are not expected to be material to the company's Condensed Consolidated Statements of Comprehensive Income. For the majority of tax jurisdictions, the company is no longer subject to state, local, or non-United States income tax examinations by tax authorities for fiscal years before 2012. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Aug. 29, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Investment Information | FAIR VALUE MEASUREMENTS The following describes the methods the company uses to estimate the fair value of financial assets and liabilities, which have not significantly changed in the current period: Available-for-sale securities — The company's available-for-sale marketable securities primarily include mortgage-backed debt securities, government obligations and corporate debt securities and are recorded at fair value using quoted prices for similar securities. Deferred compensation plan — The company's deferred compensation plan primarily includes various domestic and international mutual funds that are recorded at fair value using quoted prices for similar securities. Foreign currency exchange contracts — The company's foreign currency exchange contracts are valued using an approach based on foreign currency exchange rates obtained from active markets. The estimated fair value of forward currency exchange contracts is based on month-end spot rates as adjusted by market-based current activity. These forward contracts are not designated as hedging instruments. Accordingly, we record the fair value of these contracts as of the end of the reporting period in the Condensed Consolidated Balance Sheets with changes in fair value recorded within the Condensed Consolidated Statements of Comprehensive Income. The following tables set forth financial assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of August 29, 2015 and May 30, 2015 . (In millions) Fair Value Measurements August 29, 2015 May 30, 2015 Financial Assets Quoted Prices with Other Observable Inputs (Level 2) Quoted Prices with Other Observable Inputs (Level 2) Available-for-sale marketable securities: Asset-backed securities $ 0.2 $ 0.2 Corporate securities 0.6 0.6 Government obligations 4.4 4.4 Mortgage-backed securities 0.5 0.5 Foreign currency forward contracts 0.6 0.7 Deferred compensation plan 8.0 7.9 Total $ 14.3 $ 14.3 Financial Liabilities Foreign currency forward contracts $ 0.6 $ 0.2 Total $ 0.6 $ 0.2 The company does not hold any level 3 investments. The following is a summary of the carrying and market values of the company's marketable securities as of the respective dates. August 29, 2015 (In millions) Cost Unrealized Gain Unrealized Loss Market Value Asset-backed securities $ 0.2 $ — $ — $ 0.2 Corporate securities 0.6 — — 0.6 Government obligations 4.4 — — 4.4 Mortgage-backed securities 0.5 — — 0.5 Total $ 5.7 $ — $ — $ 5.7 May 30, 2015 (In millions) Cost Unrealized Gain Unrealized Loss Market Value Asset-backed securities $ 0.2 $ — $ — $ 0.2 Corporate securities 0.6 — — 0.6 Government obligations 4.4 — — 4.4 Mortgage-backed securities 0.5 — — 0.5 Total $ 5.7 $ — $ — $ 5.7 Adjustments to the fair value of available-for-sale securities are recorded as increases or decreases, net of income taxes, within accumulated other comprehensive loss in stockholders’ equity. The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in the Condensed Consolidated Statements of Comprehensive Income within "Other, net". The company reviews its investment portfolio for any unrealized losses that would be deemed other-than-temporary and require the recognition of an impairment loss in earnings. If the cost of an investment exceeds its fair value, the company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than its cost, the company's intent to hold the investment, and whether it is more likely than not that the company will be required to sell the investment before recovery of the cost basis. The company also considers the type of security, related industry and sector performance, and published investment ratings. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. If conditions within individual markets, industry segments, or macro-economic environments deteriorate, the company could incur future impairments. Maturities of debt securities included in marketable securities as of August 29, 2015 , are as follows. (In millions) Cost Fair Value Due within one year $ 4.1 $ 4.1 Due after one year through five years 1.5 1.5 Due after five years through ten years — — Due after more than ten years 0.1 0.1 Total $ 5.7 $ 5.7 The company views its available-for-sale portfolio as available for use in its current operations. Accordingly, the investments are recorded within Current Assets within the Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Aug. 29, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies And Guarantees Disclosure | COMMITMENTS 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 twelve years for the majority of products sold; however, this varies depending on the product classification. The company does not sell or otherwise issue warranties or warranty extensions as stand-alone products. Reserves have been established for the various costs associated with the company's warranty program and are included in the Condensed Consolidated Balance Sheets under “Accrued warranty.” General warranty reserves are based on historical claims experience and other currently available information. These reserves are adjusted once an issue is identified and the actual cost of correction becomes known or can be estimated. (In millions) Three Months Ended August 29, 2015 August 30, 2014 Accrual Balance — beginning $ 26.8 $ 25.2 Accrual for warranty matters 5.6 6.5 Settlements and adjustments (5.4 ) (6.0 ) Accrual Balance — ending $ 27.0 $ 25.7 Guarantees The company is periodically required to provide performance bonds in order to do business with certain customers. These arrangements are common and generally have terms ranging between one and three years. The bonds are required to provide assurance to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. The bonds are provided by various bonding agencies; however, the company is ultimately liable for claims that may occur against them. As of August 29, 2015 , the company had a maximum financial exposure related to performance bonds totaling approximately $8.3 million . The company has no history of claims, nor is it aware of circumstances that would require it to pay, under any of these arrangements. The company also believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the company's financial statements. Accordingly, no liability has been recorded in respect to these bonds as of August 29, 2015 and May 30, 2015 . The company has entered into standby letter of credit arrangements for purposes of protecting various insurance companies and lessors against default on insurance premium and lease payments. As of August 29, 2015 , the company had a maximum financial exposure from these standby letters of credit totaling approximately $10.7 million , all of which is considered usage against the company's revolving credit facility. The company has no history of claims, nor is it aware of circumstances that would require it to perform under any of these arrangements, and believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the company's financial statements. Accordingly, no liability has been recorded in respect of these arrangements as of August 29, 2015 and May 30, 2015 . 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. 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 $0.5 million and $1.5 million , depending on the outcome of future plans and negotiations. As a result, an estimated liability of $ 1.2 million was recorded under the caption “Other accrued liabilities” in the Condensed Consolidated Balance Sheets as of both August 29, 2015 and May 30, 2015 . 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. |
Debt
Debt | 3 Months Ended |
Aug. 29, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | DEBT Long-term debt as of August 29, 2015 and May 30, 2015 consisted of the following obligations: (In millions) August 29, 2015 May 30, 2015 Series B senior notes, due January 3, 2018 $ 150.0 $ 150.0 Debt securities, due March 1, 2021 50.0 50.0 Syndicated revolving line of credit, due July 2019 68.0 90.0 Total $ 268.0 $ 290.0 On July 21, 2014, the company entered into a third amendment and restatement of its syndicated revolving line of credit, which provides the company with up to $250 million in revolving variable interest borrowing capacity and includes an "accordion feature" allowing the company to increase, at its option and subject to the approval of the participating banks, the aggregate borrowing capacity of the facility by $125 million . The facility expires in July 2019 and outstanding borrowings bear interest at rates based on the prime rate, federal funds rate, LIBOR, or negotiated rates as outlined in the agreement. Interest is payable periodically throughout the period if borrowings are outstanding. As of August 29, 2015 , the total debt outstanding related to borrowings against this facility was $68.0 million . These borrowings are included within Long-term debt in the Condensed Consolidated Balance Sheet. As of August 29, 2015 , the total usage against the facility was $78.7 million , of which $10.7 million related to outstanding letters of credit. As of May 30, 2015 total usage against this facility was $98.3 million , $8.3 million of which related to outstanding letters of credit. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Aug. 29, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 three months ended August 29, 2015 and August 30, 2014 : Three Months Ended (In millions) August 29, 2015 August 30, 2014 Cumulative translation adjustments at beginning of period $ (20.8 ) $ (11.1 ) Translation adjustments (3.5 ) (0.5 ) Balance at end of period (24.3 ) (11.6 ) Pension and other post-retirement benefit plans at beginning of period (35.4 ) (26.8 ) Reclassification to earnings - operating expenses (net of tax $(0.3), $(0.1)) 0.9 0.4 Balance at end of period (34.5 ) (26.4 ) Total accumulated other comprehensive loss $ (58.8 ) $ (38.0 ) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Aug. 29, 2015 | |
Redeemable Noncontrolling Interests [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | REDEEMABLE NONCONTROLLING INTERESTS Redeemable noncontrolling interests are reported on the Consolidated Balance Sheets in mezzanine equity in “Redeemable noncontrolling interests.” The company recognizes changes to the redemption value of redeemable noncontrolling interests as they occur and adjusts the carrying value to equal the redemption value at the end of each reporting period accordingly. The redemption amounts have been estimated based on the fair value of the subsidiary, determined based on a weighting of the discounted cash flow and market methods. This represents a level 3 fair value measurement. Changes in the company’s Redeemable noncontrolling interests for the three months ended August 29, 2015 and August 30, 2014 are as follows: Three Months Ended (In millions) August 29, 2015 August 30, 2014 Beginning Balance $ 30.4 $ — Increase due to business combination — 25.7 Net income attributable to redeemable noncontrolling interests 0.2 — Redemption value adjustment 0.8 — Other adjustments 0.1 0.1 Ending Balance $ 31.5 $ 25.8 |
Operating Segments
Operating Segments | 3 Months Ended |
Aug. 29, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [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, 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. ELA Furniture Solutions includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the EMEA, Latin America, and Asia-Pacific geographic regions. Specialty includes the operations associated with the design, manufacture, and sale of high-craft furniture products and textiles including Geiger wood products, Maharam textiles, and Herman Miller Collection products. The Consumer segment includes the operations associated with the sale of modern design furnishings and accessories to third party retail distributors, as well as direct-to-consumer sales through eCommerce and DWR studios. The company also reports a “Corporate” category consisting primarily of unallocated corporate expenses including restructuring, impairment, acquisition-related costs, and other unallocated corporate costs. 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 company has determined that allocation based on relative net sales is appropriate. The majority of corporate costs are allocated to the operating segments; however, certain 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 charges that are reflected in operating earnings are allocated to the “Corporate” category. 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 periods indicated. Three Months Ended (In millions) August 29, 2015 August 30, 2014 Net Sales: North American Furniture Solutions $ 338.1 $ 321.1 ELA Furniture Solutions 102.5 95.4 Specialty 57.8 54.6 Consumer 67.0 38.6 Corporate — — Total $ 565.4 $ 509.7 Depreciation and Amortization: North American Furniture Solutions $ 7.7 $ 7.2 ELA Furniture Solutions 2.1 2.2 Specialty 1.8 1.7 Consumer 2.0 0.9 Corporate 0.1 — Total $ 13.7 $ 12.0 Operating Earnings: North American Furniture Solutions $ 40.8 $ 36.2 ELA Furniture Solutions 6.6 3.1 Specialty 4.3 2.9 Consumer 3.8 2.3 Corporate (0.4 ) (2.3 ) Total $ 55.1 $ 42.2 Capital Expenditures: North American Furniture Solutions $ 5.0 $ 4.2 ELA Furniture Solutions 8.7 1.9 Specialty 0.8 1.1 Consumer 2.1 1.0 Corporate — — Total $ 16.6 $ 8.2 (In millions) August 29, 2015 May 30, 2015 Total Assets: North American Furniture Solutions $ 523.0 $ 500.0 ELA Furniture Solutions 230.4 235.4 Specialty 150.2 151.6 Consumer 235.7 231.8 Corporate 57.7 69.4 Total $ 1,197.0 $ 1,188.2 Total Goodwill: North American Furniture Solutions $ 135.8 $ 135.8 ELA Furniture Solutions 41.8 41.9 Specialty 49.8 49.8 Consumer 75.6 75.6 Corporate — — Total $ 303.0 $ 303.1 |
Inventories (Policies)
Inventories (Policies) | 3 Months Ended |
Aug. 29, 2015 | |
Inventories [Abstract] | |
Inventory, Policy | Inventories are valued at the lower of cost or market and include material, labor, and overhead. The inventories of the majority of domestic manufacturing subsidiaries 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 ("FIFO") |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Aug. 29, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | Adjustments to the fair value of available-for-sale securities are recorded as increases or decreases, net of income taxes, within accumulated other comprehensive loss in stockholders’ equity. The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in the Condensed Consolidated Statements of Comprehensive Income within "Other, net". |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | DWR acquisition-related expenses were $2.2 million during fiscal 2015. $2.0 million of these expenses were recorded in the first quarter of fiscal 2015. These expenses included legal and professional services fees. The following table summarizes the fair values of the assets acquired and the liabilities assumed from the acquisition. Assets Acquired and Liabilities Assumed on July 28, 2014 (In millions) Fair Value Purchase price $ 155.2 Fair value of the assets acquired: Cash 1.2 Accounts receivable 2.2 Inventory 47.4 Current deferred tax asset 1.5 Other current assets 5.5 Goodwill 75.6 Other intangible assets 68.5 Property 32.0 Other long term assets 2.4 Total assets acquired 236.3 Fair value of liabilities assumed: Accounts payable 20.8 Accrued compensation and benefits 1.6 Other accrued liabilities 12.3 Long term deferred tax liability 14.5 Other long term liabilities 0.4 Total liabilities assumed 49.6 Redeemable noncontrolling interests 25.7 Noncontrolling interests 5.8 Net assets acquired $ 155.2 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Other intangible assets acquired as a result of the acquisition of DWR were valued at $68.5 million . These amounts are reflected in the values presented in the following table: Intangible Assets Acquired from the DWR Acquisition (In millions) Fair Value Useful Life Trade Names and Trademarks $ 55.1 Indefinite Exclusive Distribution Agreements 0.2 1.5 years Customer Relationships 12.0 10 - 16 years Product Development Designs 1.2 7 years Total Intangible Assets Acquired $ 68.5 |
Business Combinations Results of Operations of Acquiree | Intangible Assets Acquired from the DWR Acquisition (In millions) Fair Value Useful Life Trade Names and Trademarks $ 55.1 Indefinite Exclusive Distribution Agreements 0.2 1.5 years Customer Relationships 12.0 10 - 16 years Product Development Designs 1.2 7 years Total Intangible Assets Acquired $ 68.5 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | (In millions) August 29, 2015 May 30, 2015 Finished goods $ 112.6 $ 106.5 Raw materials 24.3 23.1 Total $ 136.9 $ 129.6 |
Goodwill and Indefinite-lived27
Goodwill and Indefinite-lived Intangibles (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Goodwill and Indefinite-lived Intangibles [Abstract] | |
Goodwill and Indefinite-lived Intangibles | Goodwill and other indefinite-lived intangible assets included in the Condensed Consolidated Balance Sheets consisted of the following as of August 29, 2015 and May 30, 2015 : (In millions) Goodwill Indefinite-lived Intangible Assets Total Goodwill and Indefinite-lived Intangible Assets May 30, 2015 $ 303.1 $ 85.2 $ 388.3 Foreign currency translation adjustments (0.1 ) — (0.1 ) August 29, 2015 $ 303.0 $ 85.2 $ 388.2 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Employee Benefit Plans [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | Three Months Ended Pension Benefits (In millions) August 29, 2015 August 30, 2014 International: Interest cost $ 1.0 $ 1.2 Expected return on plan assets (1.4 ) (1.5 ) Net amortization loss 0.7 0.5 Net periodic benefit cost $ 0.3 $ 0.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table reconciles the numerators and denominators used in the calculations of basic and diluted earnings per share (EPS). Three Months Ended August 29, 2015 August 30, 2014 Numerators : Numerator for both basic and diluted EPS, net earnings attributable to Herman Miller, Inc. - in millions $ 33.5 $ 25.2 Denominators : Denominator for basic EPS, weighted-average common shares outstanding 59,733,924 59,295,859 Potentially dilutive shares resulting from stock plans 497,141 615,993 Denominator for diluted EPS 60,231,065 59,911,852 Antidilutive equity awards not included in weighted-average common shares - diluted 643,782 709,206 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The following tables set forth financial assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of August 29, 2015 and May 30, 2015 . (In millions) Fair Value Measurements August 29, 2015 May 30, 2015 Financial Assets Quoted Prices with Other Observable Inputs (Level 2) Quoted Prices with Other Observable Inputs (Level 2) Available-for-sale marketable securities: Asset-backed securities $ 0.2 $ 0.2 Corporate securities 0.6 0.6 Government obligations 4.4 4.4 Mortgage-backed securities 0.5 0.5 Foreign currency forward contracts 0.6 0.7 Deferred compensation plan 8.0 7.9 Total $ 14.3 $ 14.3 Financial Liabilities Foreign currency forward contracts $ 0.6 $ 0.2 Total $ 0.6 $ 0.2 |
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 respective dates. August 29, 2015 (In millions) Cost Unrealized Gain Unrealized Loss Market Value Asset-backed securities $ 0.2 $ — $ — $ 0.2 Corporate securities 0.6 — — 0.6 Government obligations 4.4 — — 4.4 Mortgage-backed securities 0.5 — — 0.5 Total $ 5.7 $ — $ — $ 5.7 May 30, 2015 (In millions) Cost Unrealized Gain Unrealized Loss Market Value Asset-backed securities $ 0.2 $ — $ — $ 0.2 Corporate securities 0.6 — — 0.6 Government obligations 4.4 — — 4.4 Mortgage-backed securities 0.5 — — 0.5 Total $ 5.7 $ — $ — $ 5.7 |
Investments Classified by Contractual Maturity Date | Maturities of debt securities included in marketable securities as of August 29, 2015 , are as follows. (In millions) Cost Fair Value Due within one year $ 4.1 $ 4.1 Due after one year through five years 1.5 1.5 Due after five years through ten years — — Due after more than ten years 0.1 0.1 Total $ 5.7 $ 5.7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | General warranty reserves are based on historical claims experience and other currently available information. These reserves are adjusted once an issue is identified and the actual cost of correction becomes known or can be estimated. (In millions) Three Months Ended August 29, 2015 August 30, 2014 Accrual Balance — beginning $ 26.8 $ 25.2 Accrual for warranty matters 5.6 6.5 Settlements and adjustments (5.4 ) (6.0 ) Accrual Balance — ending $ 27.0 $ 25.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt as of August 29, 2015 and May 30, 2015 consisted of the following obligations: (In millions) August 29, 2015 May 30, 2015 Series B senior notes, due January 3, 2018 $ 150.0 $ 150.0 Debt securities, due March 1, 2021 50.0 50.0 Syndicated revolving line of credit, due July 2019 68.0 90.0 Total $ 268.0 $ 290.0 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides an analysis of the changes in accumulated other comprehensive loss for the three months ended August 29, 2015 and August 30, 2014 : Three Months Ended (In millions) August 29, 2015 August 30, 2014 Cumulative translation adjustments at beginning of period $ (20.8 ) $ (11.1 ) Translation adjustments (3.5 ) (0.5 ) Balance at end of period (24.3 ) (11.6 ) Pension and other post-retirement benefit plans at beginning of period (35.4 ) (26.8 ) Reclassification to earnings - operating expenses (net of tax $(0.3), $(0.1)) 0.9 0.4 Balance at end of period (34.5 ) (26.4 ) Total accumulated other comprehensive loss $ (58.8 ) $ (38.0 ) |
Redeemable Noncontrolling Int34
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Redeemable Noncontrolling Interest [Line Items] | |
Redeemable Noncontrolling Interest [Table Text Block] | Changes in the company’s Redeemable noncontrolling interests for the three months ended August 29, 2015 and August 30, 2014 are as follows: Three Months Ended (In millions) August 29, 2015 August 30, 2014 Beginning Balance $ 30.4 $ — Increase due to business combination — 25.7 Net income attributable to redeemable noncontrolling interests 0.2 — Redemption value adjustment 0.8 — Other adjustments 0.1 0.1 Ending Balance $ 31.5 $ 25.8 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Aug. 29, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following is a summary of certain key financial measures for the respective fiscal periods indicated. Three Months Ended (In millions) August 29, 2015 August 30, 2014 Net Sales: North American Furniture Solutions $ 338.1 $ 321.1 ELA Furniture Solutions 102.5 95.4 Specialty 57.8 54.6 Consumer 67.0 38.6 Corporate — — Total $ 565.4 $ 509.7 Depreciation and Amortization: North American Furniture Solutions $ 7.7 $ 7.2 ELA Furniture Solutions 2.1 2.2 Specialty 1.8 1.7 Consumer 2.0 0.9 Corporate 0.1 — Total $ 13.7 $ 12.0 Operating Earnings: North American Furniture Solutions $ 40.8 $ 36.2 ELA Furniture Solutions 6.6 3.1 Specialty 4.3 2.9 Consumer 3.8 2.3 Corporate (0.4 ) (2.3 ) Total $ 55.1 $ 42.2 Capital Expenditures: North American Furniture Solutions $ 5.0 $ 4.2 ELA Furniture Solutions 8.7 1.9 Specialty 0.8 1.1 Consumer 2.1 1.0 Corporate — — Total $ 16.6 $ 8.2 (In millions) August 29, 2015 May 30, 2015 Total Assets: North American Furniture Solutions $ 523.0 $ 500.0 ELA Furniture Solutions 230.4 235.4 Specialty 150.2 151.6 Consumer 235.7 231.8 Corporate 57.7 69.4 Total $ 1,197.0 $ 1,188.2 Total Goodwill: North American Furniture Solutions $ 135.8 $ 135.8 ELA Furniture Solutions 41.8 41.9 Specialty 49.8 49.8 Consumer 75.6 75.6 Corporate — — Total $ 303.0 $ 303.1 |
Fiscal Year (Details)
Fiscal Year (Details) | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Fiscal Year [Abstract] | ||
Fiscal Period Duration, Quarter | 91 days | 91 days |
Fiscal Period Duration, Year | 364 days | 364 days |
Acquisitions and Divestitures37
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | Jul. 28, 2014 | Aug. 30, 2014 | Aug. 30, 2014 | Feb. 28, 2015 | May. 30, 2015 | Aug. 29, 2015 |
Business Acquisition | ||||||
Long-term Line of Credit | $ 127 | |||||
Goodwill | $ 303.1 | $ 303 | ||||
Design Within Reach | ||||||
Business Acquisition | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 81.00% | |||||
Purchase price | $ 155.2 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 10 | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests, Percent | 4.00% | |||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 5.8 | |||||
Business Combination, Acquisition Related Costs | $ 2 | $ 2.2 | ||||
Goodwill | 75.6 | |||||
Other intangible assets | 68.5 | |||||
Redeemable Noncontrolling Interest | Design Within Reach | ||||||
Business Acquisition | ||||||
Fair value of fully-vested options granted | $ 1.7 | |||||
Herman Miller Consumer Holdings, Inc. | Design Within Reach | ||||||
Business Acquisition | ||||||
Capital Contributed, Percentage of Acquiree | 15.00% | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 7.00% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Millions | 7 Months Ended | |||
Feb. 28, 2015 | Aug. 29, 2015 | May. 30, 2015 | Jul. 28, 2014 | |
Fair value of the assets acquired: | ||||
Goodwill | $ 303 | $ 303.1 | ||
Design Within Reach | ||||
Business Acquisition | ||||
Purchase price | $ 155.2 | |||
Fair value of the assets acquired: | ||||
Cash | $ 1.2 | |||
Accounts receivable | 2.2 | |||
Inventory | 47.4 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets, Current | 1.5 | |||
Other current assets | 5.5 | |||
Goodwill | 75.6 | |||
Other intangible assets | 68.5 | |||
Property | 32 | |||
Other long term assets | 2.4 | |||
Total assets acquired | 236.3 | |||
Fair value of liabilities assumed: | ||||
Accounts payable | 20.8 | |||
Accrued compensation and benefits | 1.6 | |||
Other accrued liabilities | 12.3 | |||
Long term deferred tax liability | 14.5 | |||
Other long term liabilities | 0.4 | |||
Total liabilities assumed | 49.6 | |||
Redeemable noncontrolling interests | 25.7 | |||
Noncontrolling interests | 5.8 | |||
Net assets acquired | $ 155.2 |
Acquisitions and Divestitures39
Acquisitions and Divestitures - Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - Design Within Reach $ in Millions | Jul. 28, 2014USD ($) |
Business Acquisition | |
Total Intangible Assets Acquired | $ 68.5 |
Exclusive Distribution Agreements | |
Business Acquisition | |
Finite-lived Intangible Assets Acquired | $ 0.2 |
Finite-Lived Intangible Asset, Useful Life | 1 year 6 months |
Customer Relationships | |
Business Acquisition | |
Finite-lived Intangible Assets Acquired | $ 12 |
Product Development Designs | |
Business Acquisition | |
Finite-lived Intangible Assets Acquired | $ 1.2 |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Trade Names | |
Business Acquisition | |
Trade Names and Trademarks | $ 55.1 |
Minimum | Customer Relationships | |
Business Acquisition | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Maximum | Customer Relationships | |
Business Acquisition | |
Finite-Lived Intangible Asset, Useful Life | 16 years |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 |
Inventories [Abstract] | ||
Finished goods | $ 112.6 | $ 106.5 |
Raw materials | 24.3 | 23.1 |
Total | $ 136.9 | $ 129.6 |
Goodwill and Indefinite-lived41
Goodwill and Indefinite-lived Intangibles (Details) $ in Millions | 3 Months Ended |
Aug. 29, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 303.1 |
Foreign currency translation adjustments | (0.1) |
Goodwill, ending | 303 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Indefinite-Lived Intangible Assets (Excluding Goodwill), beginning | 85.2 |
Foreign currency translation adjustments | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill), ending | 85.2 |
Rollforward of Goodwill and Indefinite-lived Intangible Assets [Roll Forward] | |
Goodwill and indefinite-lived intangibles, beginning | 388.3 |
Foreign currency translation adjustments | (0.1) |
Goodwill and indefinite-lived intangibles, ending | $ 388.2 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - Foreign Pension Plan - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Defined Benefit Plan Disclosure | ||
Interest cost | $ 1 | $ 1.2 |
Expected return on plan assets | (1.4) | (1.5) |
Net amortization loss | 0.7 | 0.5 |
Net periodic benefit cost | $ 0.3 | $ 0.2 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Earnings Per Share [Abstract] | ||
Numerator for both basic and diluted EPS, net earnings attributable to Herman Miller, Inc. - in millions | $ 33.5 | $ 25.2 |
Denominator for basic EPS, weighted-average common shares outstanding | 59,733,924 | 59,295,859 |
Potentially dilutive shares resulting from stock plans | 497,141 | 615,993 |
Denominator for diluted EPS | 60,231,065 | 59,911,852 |
Antidilutive equity awards not included in weighted-average common shares - diluted | 643,782 | 709,206 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ in Millions | 3 Months Ended | |
Aug. 29, 2015USD ($)shares | Aug. 30, 2014USD ($)shares | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Allocated Share-based Compensation Expense | $ | $ 4 | $ 3 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ | $ 1.4 | $ 1.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 17,390 | 30,878 |
Common Stock, Capital Shares Reserved for Future Issuance | 4,000,000 | |
Percent of Market Price | 85.00% | |
Restricted Stock Units (RSUs) | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 160,319 | 112,615 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversion Ratio to Common Stock | 1 | |
Performance Share Units | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 55,825 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversion Ratio to Common Stock | 1 | |
Employee Stock Option | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Restricted Stock Grants | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Minimum | Restricted Stock Units (RSUs) | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Minimum | Employee Stock Option | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Maximum | Restricted Stock Units (RSUs) | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Maximum | Employee Stock Option | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Herman Miller Consumer Holdings | Minimum | Employee Stock Option | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Herman Miller Consumer Holdings | Maximum | Employee Stock Option | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Continuing Operations | 33.60% | 33.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Liability for Uncertain Tax Positions, Current | $ 1.8 | $ 1.3 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 1.1 | $ 0.5 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - Fair Value, Inputs, Level 2 - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Deferred Compensation Plan Fair Value Disclosure | $ 8 | $ 7.9 |
Assets, Fair Value Disclosure | 14.3 | 14.3 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0.6 | 0.2 |
Foreign Exchange Forward | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.6 | 0.7 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.6 | 0.2 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 0.2 | 0.2 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 0.6 | 0.6 |
US Treasury and Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 4.4 | 4.4 |
Collateralized Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | $ 0.5 | $ 0.5 |
Fair Value Measurements - Unrea
Fair Value Measurements - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost | $ 5.7 | $ 5.7 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 5.7 | 5.7 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost | 0.2 | 0.2 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 0.2 | 0.2 |
Corporate Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost | 0.6 | 0.6 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 0.6 | 0.6 |
US Treasury and Government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost | 4.4 | 4.4 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | 4.4 | 4.4 |
Collateralized Mortgage Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cost | 0.5 | 0.5 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | $ 0.5 | $ 0.5 |
Fair Value Measurements - Matur
Fair Value Measurements - Maturities of Available-for-sale marketable securities (Details) - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 |
Fair Value Disclosures [Abstract] | ||
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis | $ 4.1 | |
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value | 4.1 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis | 1.5 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 1.5 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis | 0 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 0 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 0.1 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 0.1 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | $ 5.7 | $ 5.7 |
Commitments and Contingencies49
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | May. 30, 2015 | |
Loss Contingencies [Line Items] | ||
Warranty Length | 12 years | |
Necessary Maintenance And Repairs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Minimum | $ 0.5 | |
Loss Contingency, Range of Possible Loss, Maximum | 1.5 | |
Accrued Liabilities [Member] | Necessary Maintenance And Repairs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency Accrual | 1.2 | $ 1.2 |
Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 8.3 | |
Guarantor Obligations, Current Carrying Value | 0 | 0 |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 10.7 | |
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Minimum | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Period | 1 year | |
Maximum | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Period | 3 years |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Accrual Balance — beginning | $ 26.8 | $ 25.2 |
Accrual for warranty matters | 5.6 | 6.5 |
Settlements and adjustments | (5.4) | (6) |
Accrual Balance — ending | $ 27 | $ 25.7 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 | Jul. 28, 2014 |
Line of Credit Facility [Line Items] | |||
Long-term Line of Credit | $ 127 | ||
Borrowings on revolver and outstanding letters of credit | $ 78.7 | $ 98.3 | |
Revolving Line of Credit, Domestic | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 250 | ||
Line Of Credit Facility, Increase in Borrowing Capacity | 125 | ||
Long-term Line of Credit | 68 | 90 | |
Letters of Credit Outstanding, Amount | $ 10.7 | $ 8.3 |
Schedule of Long Term Debt (Det
Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Aug. 29, 2015 | May. 30, 2015 | Jul. 28, 2014 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 268 | $ 290 | |
Long-term Line of Credit | $ 127 | ||
Revolving Line of Credit, Domestic | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | 68 | 90 | |
Series B [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 150 | 150 | |
Debt, Debt Securities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 50 | $ 50 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | May. 30, 2015 | |
Cumulative translation adjustments [Roll Forward] | |||
Cumulative translation adjustments at beginning of period | $ (20.8) | $ (11.1) | |
Translation adjustments | (3.5) | (0.5) | |
Balance at end of period | (24.3) | (11.6) | |
Pension and other post-retirement benefit plans [Roll Forward] | |||
Pension and other post-retirement benefit plans at beginning of period | (35.4) | (26.8) | |
Balance at end of period | (34.5) | (26.4) | |
Total accumulated other comprehensive loss | (58.8) | (38) | $ (56.2) |
Operating Expense | |||
Pension and other post-retirement benefit plans [Roll Forward] | |||
Reclassification Adjustment from AOCI, Pension and Other Postretirement Plans, Net of Tax | 0.9 | 0.4 | |
Reclassification Adjustment from AOCI, Pension and Other Postretirement Plans, Tax | $ 0.3 | $ 0.1 |
Redeemable Noncontrolling Int54
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 29, 2015 | Aug. 30, 2014 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Noncontrolling Interests, Beginning | $ 30.4 | |
Redeemable Noncontrolling Interests, Ending | 31.5 | |
Herman Miller Consumer Holdings | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Redeemable Noncontrolling Interests, Beginning | 30.4 | $ 0 |
Increase due to business combination | 0 | 25.7 |
Net income attributable to redeemable noncontrolling interests | 0.2 | 0 |
Noncontrolling interests redemption value adjustment | 0.8 | 0 |
Other adjustments | 0.1 | 0.1 |
Redeemable Noncontrolling Interests, Ending | $ 31.5 | $ 25.8 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 29, 2015 | Aug. 30, 2014 | May. 30, 2015 | |
Segment Reporting Information | |||
Net Sales: | $ 565.4 | $ 509.7 | |
Depreciation and Amortization: | 13.7 | 12 | |
Operating Earnings: | 55.1 | 42.2 | |
Capital Expenditures: | 16.6 | 8.2 | |
Total Assets: | 1,197 | $ 1,188.2 | |
Total Goodwill: | 303 | 303.1 | |
North American Furniture Solutions | |||
Segment Reporting Information | |||
Net Sales: | 338.1 | 321.1 | |
Depreciation and Amortization: | 7.7 | 7.2 | |
Operating Earnings: | 40.8 | 36.2 | |
Capital Expenditures: | 5 | 4.2 | |
Total Assets: | 523 | 500 | |
Total Goodwill: | 135.8 | 135.8 | |
ELA Furniture Solutions | |||
Segment Reporting Information | |||
Net Sales: | 102.5 | 95.4 | |
Depreciation and Amortization: | 2.1 | 2.2 | |
Operating Earnings: | 6.6 | 3.1 | |
Capital Expenditures: | 8.7 | 1.9 | |
Total Assets: | 230.4 | 235.4 | |
Total Goodwill: | 41.8 | 41.9 | |
Specialty | |||
Segment Reporting Information | |||
Net Sales: | 57.8 | 54.6 | |
Depreciation and Amortization: | 1.8 | 1.7 | |
Operating Earnings: | 4.3 | 2.9 | |
Capital Expenditures: | 0.8 | 1.1 | |
Total Assets: | 150.2 | 151.6 | |
Total Goodwill: | 49.8 | 49.8 | |
Consumer | |||
Segment Reporting Information | |||
Net Sales: | 67 | 38.6 | |
Depreciation and Amortization: | 2 | 0.9 | |
Operating Earnings: | 3.8 | 2.3 | |
Capital Expenditures: | 2.1 | 1 | |
Total Assets: | 235.7 | 231.8 | |
Total Goodwill: | 75.6 | 75.6 | |
Corporate | |||
Segment Reporting Information | |||
Net Sales: | 0 | 0 | |
Depreciation and Amortization: | 0.1 | 0 | |
Operating Earnings: | (0.4) | (2.3) | |
Capital Expenditures: | 0 | $ 0 | |
Total Assets: | 57.7 | 69.4 | |
Total Goodwill: | $ 0 | $ 0 |