Document Entity Information
Document Entity Information - USD ($) | 12 Months Ended | ||
Jun. 02, 2018 | Jul. 26, 2018 | Dec. 02, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MILLER HERMAN INC | ||
Entity Central Index Key | 66,382 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 2, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --06-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,040,363,044 | ||
Entity Common Stock, Shares Outstanding | 59,694,316 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net sales | $ 2,381.2 | $ 2,278.2 | $ 2,264.9 |
Cost of sales | 1,508.2 | 1,414 | 1,390.7 |
Gross margin | 873 | 864.2 | 874.2 |
Operating expenses: | |||
Selling, general and administrative | 616.7 | 587.8 | 585.6 |
Restructuring and impairment expenses | 5.7 | 12.5 | 0 |
Design and research | 73.1 | 73.1 | 77.1 |
Total operating expenses | 695.5 | 673.4 | 662.7 |
Operating earnings | 177.5 | 190.8 | 211.5 |
Other expenses (income): | |||
Interest expense | 13.5 | 15.2 | 15.4 |
Interest and other investment income | (4.4) | (2.2) | (0.8) |
Other, net | 0.3 | 0.2 | 0.3 |
Net other expenses | 9.4 | 13.2 | 14.9 |
Earnings before income taxes | 168.1 | 177.6 | 196.6 |
Income tax expense | 42.4 | 55.1 | 59.5 |
Equity earnings from nonconsolidated affiliates, net of tax | 3 | 1.6 | 0.4 |
Net earnings | 128.7 | 124.1 | 137.5 |
Net earnings attributable to noncontrolling interests | 0.6 | 0.2 | 0.8 |
Net earnings attributable to Herman Miller, Inc. | $ 128.1 | $ 123.9 | $ 136.7 |
Earnings per share — basic | $ 2.15 | $ 2.07 | $ 2.28 |
Earnings per share — diluted | $ 2.12 | $ 2.05 | $ 2.26 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | $ 2.7 | $ (7.2) | $ (8.8) |
Pension and post-retirement liability adjustments | 10.4 | (12.7) | 0.5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent | 7.8 | 2.1 | 0 |
Unrealized gains on interest rate swap agreement | 7.5 | 2.1 | 0 |
Unrealized holding gain on available for sale securities | 0 | 0.1 | 0 |
Total other comprehensive income (loss) | 20.9 | (17.7) | (8.3) |
Comprehensive income | 149.6 | 106.4 | 129.2 |
Comprehensive income attributable to noncontrolling interests | 0.6 | 0.2 | 0.8 |
Comprehensive income attributable to Herman Miller, Inc. | $ 149 | $ 106.2 | $ 128.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 203.9 | $ 96.2 |
Marketable securities | 8.6 | 8.6 |
Accounts and notes receivable, less allowances of $3.1 in 2018 and $3.3 in 2017 | 219.3 | 186.6 |
Inventories, net | 162.4 | 152.4 |
Prepaid taxes | 9.9 | 17.7 |
Other | 41.3 | 30.4 |
Total Current Assets | 645.4 | 491.9 |
Property and Equipment: | ||
Land and improvements | 24.4 | 24 |
Buildings and improvements | 238.6 | 229 |
Machinery and equipment | 700 | 662.4 |
Construction in progress | 57.8 | 53.3 |
Gross Property and Equipment | 1,020.8 | 968.7 |
Less: Accumulated depreciation | (689.4) | (654.1) |
Net Property and Equipment | 331.4 | 314.6 |
Goodwill | 304.1 | 304.5 |
Indefinite-lived intangibles | 78.1 | 78.1 |
Other amortizable intangibles, net | 41.3 | 45.4 |
Other assets | 79.2 | 71.8 |
Total Assets | 1,479.5 | 1,306.3 |
Current Liabilities: | ||
Accounts payable | 171.4 | 148.4 |
Accrued compensation and benefits | 86.3 | 79.7 |
Accrued warranty | 51.5 | 47.7 |
Unearned revenue | 30.4 | 33.2 |
Other accrued liabilities | 74.2 | 76.7 |
Total Current Liabilities | 413.8 | 385.7 |
Long-term debt, less current portion | 275 | 199.9 |
Pension and post-retirement benefits | 15.6 | 38.5 |
Other liabilities | 79.8 | 69.9 |
Total Liabilities | 784.2 | 694 |
Redeemable noncontrolling interests | 30.5 | 24.6 |
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, 59,230,974 and 59,715,824 shares issued and outstanding in 2018 and 2017, respectively) | 11.7 | 11.9 |
Additional paid-in capital | 116.6 | 139.3 |
Retained earnings | 598.3 | 519.5 |
Accumulated other comprehensive loss | (61.3) | (82.2) |
Key executive deferred compensation | (0.7) | (1) |
Herman Miller, Inc. Stockholders' Equity | 664.6 | 587.5 |
Noncontrolling interests | 0.2 | 0.2 |
Total Stockholders' Equity | 664.8 | 587.7 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity | $ 1,479.5 | $ 1,306.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 3.1 | $ 3.3 |
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 | 59,230,974 | 59,715,824 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions | Total | Herman Miller, Inc. Stockholders' Equity | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Key Executive Deferred Compensation | Noncontrolling Interest | Restricted Stock UnitsAdditional Paid-In Capital |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of accounting change | $ 0 | $ 0 | ||||||||
Balance at beginning of year at May. 30, 2015 | $ 0 | $ 11.9 | 135.1 | 330.2 | $ (56.2) | $ (1.2) | $ 0.5 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Repurchase and retirement of common stock | 0 | (14.1) | ||||||||
Restricted stock units released | 0.1 | 6.6 | ||||||||
Employee stock purchase plan issuances | 1.7 | |||||||||
Stock-based compensation expense | 11.9 | |||||||||
Excess tax benefit for stock-based compensation | 0.8 | |||||||||
Restricted stock units released | $ 0.2 | |||||||||
Deferred compensation plan | (0.1) | 0.1 | ||||||||
Directors' fees | 0.6 | |||||||||
Net earnings attributable to Herman Miller, Inc. | $ 136.7 | 136.7 | ||||||||
Dividends declared on common stock (per share - 2018: $0.72; 2017: $0.68; 2016: $0.59) | (35.6) | |||||||||
Redemption value adjustment | 4 | |||||||||
Other comprehensive loss | (8.3) | (8.3) | ||||||||
Net income attributable to noncontrolling interests | 0.3 | |||||||||
Deconsolidation of entity with noncontrolling interests | (0.5) | |||||||||
Stock-based compensation expense | 0 | |||||||||
Purchase of noncontrolling interests | 0 | |||||||||
Balance at end of year at May. 28, 2016 | 524.7 | $ 524.4 | 0 | 12 | 142.7 | 435.3 | (64.5) | (1.1) | 0.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of accounting change | 0 | 0 | ||||||||
Repurchase and retirement of common stock | (0.1) | (23.7) | ||||||||
Restricted stock units released | 0 | 9.4 | ||||||||
Employee stock purchase plan issuances | 1.9 | |||||||||
Stock-based compensation expense | 9.1 | |||||||||
Excess tax benefit for stock-based compensation | (0.6) | |||||||||
Restricted stock units released | 0.3 | |||||||||
Deferred compensation plan | (0.1) | 0.1 | ||||||||
Directors' fees | 0.3 | |||||||||
Net earnings attributable to Herman Miller, Inc. | 123.9 | 123.9 | ||||||||
Dividends declared on common stock (per share - 2018: $0.72; 2017: $0.68; 2016: $0.59) | (40.9) | |||||||||
Redemption value adjustment | (1.2) | 1.2 | ||||||||
Other comprehensive loss | (17.7) | (17.7) | ||||||||
Net income attributable to noncontrolling interests | 0 | |||||||||
Deconsolidation of entity with noncontrolling interests | 0 | |||||||||
Stock-based compensation expense | (0.1) | |||||||||
Purchase of noncontrolling interests | (1.5) | |||||||||
Balance at end of year at Jun. 03, 2017 | 587.7 | 587.5 | 0 | 11.9 | 139.3 | 519.5 | (82.2) | (1) | 0.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect of accounting change | (0.3) | 0.1 | ||||||||
Repurchase and retirement of common stock | (0.3) | (46.2) | ||||||||
Restricted stock units released | 0.1 | 14.6 | ||||||||
Employee stock purchase plan issuances | 2 | |||||||||
Stock-based compensation expense | 7 | |||||||||
Excess tax benefit for stock-based compensation | 0 | |||||||||
Restricted stock units released | $ 0.2 | |||||||||
Deferred compensation plan | (0.4) | 0.3 | ||||||||
Directors' fees | 0.4 | |||||||||
Net earnings attributable to Herman Miller, Inc. | 128.1 | 128.1 | ||||||||
Dividends declared on common stock (per share - 2018: $0.72; 2017: $0.68; 2016: $0.59) | (43.2) | |||||||||
Redemption value adjustment | 6.2 | (6.2) | ||||||||
Other comprehensive loss | 20.9 | 20.9 | ||||||||
Net income attributable to noncontrolling interests | 0 | |||||||||
Deconsolidation of entity with noncontrolling interests | 0 | |||||||||
Stock-based compensation expense | 0 | |||||||||
Purchase of noncontrolling interests | (1) | |||||||||
Balance at end of year at Jun. 02, 2018 | $ 664.8 | $ 664.6 | $ 0 | $ 11.7 | $ 116.6 | $ 598.3 | $ (61.3) | $ (0.7) | $ 0.2 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.720 | $ 0.680 | $ 0.590 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Cash Flows from Operating Activities: | |||
Net earnings | $ 128.7 | $ 124.1 | $ 137.5 |
Depreciation expense | 60.9 | 52.9 | 47 |
Amortization expense | 6 | 6 | 6 |
Provision for losses on accounts receivable and notes receivable | 0.9 | 0 | 2.2 |
Earnings from nonconsolidated affiliates net of dividends received | (0.2) | (1.5) | 0 |
Gain on sales of property and dealers | 0.5 | 0 | 5.8 |
Deferred taxes | (0.8) | 14.8 | 10.4 |
Pension contributions | (13.4) | (1.1) | (1.2) |
Pension and post-retirement expenses | 2.9 | 0.5 | 1.4 |
Restructuring and impairment expenses | 5.7 | 12.5 | 0 |
Stock-based compensation | 7.7 | 8.7 | 11.9 |
Excess tax benefits from stock-based compensation | 0 | (0.5) | (1.4) |
Increase in long-term liabilities | 3.4 | 6.2 | 6.7 |
(Increase) decrease in accounts receivable | (33.1) | 17.3 | (30.5) |
Increase in inventories | (12.4) | (29.9) | (6) |
Increase in prepaid expenses and other | (3) | (0.5) | (11.7) |
Increase (decrease) in accounts payable | 16 | (11.2) | 8.7 |
(Decrease) increase in accrued liabilities | (0.3) | 0.8 | 33.5 |
Other | (2) | 3 | 1.7 |
Net Cash Provided by Operating Activities | 166.5 | 202.1 | 210.4 |
Cash Flows from Investing Activities: | |||
Net (advances) receipts from notes receivable | (1.1) | 2.4 | 0.2 |
Marketable securities purchases | (1) | (2) | (7.8) |
Marketable securities sales | 1 | 0.9 | 6.1 |
Capital expenditures | (70.6) | (87.3) | (85.1) |
Proceeds from sales of property and dealers | 2.1 | 0 | 10.7 |
Payments of loans on cash surrender value of life insurance | 0 | (15.3) | 0 |
Proceeds from life insurance policy | 8.1 | 0 | 0 |
Acquisitions, net of cash received | 0 | 0 | (3.6) |
Equity investment in non-controlled entities | 0 | (13.1) | 0 |
Other, net | (1.2) | (1.9) | (1.3) |
Net Cash Used for Investing Activities | (62.7) | (116.3) | (80.8) |
Cash Flows from Financing Activities: | |||
Repayments of Long-term Debt | 150 | 0 | 0 |
Proceeds from credit facility | 340.4 | 794.4 | 800.8 |
Repayments of credit facility | (115.4) | (816.4) | (868.8) |
Dividends paid | (42.4) | (39.4) | (34.9) |
Common stock issued | 17 | 11.7 | 9.2 |
Common stock repurchased and retired | (46.5) | (23.8) | (14.1) |
Excess tax benefits from stock-based compensation | 0 | 0.5 | 1.4 |
Payment of contingent consideration obligation | (0.1) | (2) | 0 |
Purchase of noncontrolling interests | (1) | (1.5) | 0 |
Other, net | 0.5 | 1.9 | (0.1) |
Net Cash Provided by (Used for) Financing Activities | 2.5 | (74.6) | (106.5) |
Effect of exchange rate changes on cash and cash equivalents | 1.4 | 0.1 | (1.9) |
Net Increase In Cash and Cash Equivalents | 107.7 | 11.3 | 21.2 |
Cash and cash equivalents, Beginning of Year | 96.2 | 84.9 | 63.7 |
Cash and Cash Equivalents, End of Year | 203.9 | 96.2 | 84.9 |
Other Cash Flow Information | |||
Interest paid | 16.4 | 13.4 | 13.4 |
Income taxes paid, net of cash received | $ 34.2 | $ 35.6 | $ 57.6 |
Significant Accounting and Repo
Significant Accounting and Reporting Policies | 12 Months Ended |
Jun. 02, 2018 | |
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, sells, 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, owned retail studios, direct-mail catalogs and the company's e-commerce platforms. Fiscal Year The company's fiscal year ends on the Saturday closest to May 31. The fiscal year ended June 2, 2018 contained 52 weeks , while the fiscal year ended June 3, 2017 contained 53 weeks . The fiscal year ended May 28, 2016 contained 52 weeks. Foreign Currency Translation The functional currency for most of the 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 gains and losses resulting from remeasuring foreign currency transactions into the appropriate functional currency resulted in a net gain $0.4 million for fiscal year ended June 2, 2018 , and a net loss of $0.7 million and $0.7 million for the fiscal years ended June 3, 2017 and May 28, 2016 , respectively. These amounts are included in “Other, net” 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 and time deposit investments with original maturities of less than three months. The carrying value of cash equivalents, which approximates fair value, totaled $148.8 million an d $33.6 million as of June 2, 2018 and June 3, 2017 , respectively. All 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 mutual funds. 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 The company's trade receivables are primarily due from independent dealers who, in turn, carry receivables from their customers. The company monitors and manages 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 the company. In those cases, the company may assume the credit risk. Whether from dealers or customers, the company's 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 manufacturing facilities in Michigan, whereas inventories of the company's other locations 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 net realizable value 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. Goodwill and Indefinite-lived Intangible Assets Goodwill is tested for impairment at the reporting unit level annually, or more frequently, when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. A reporting unit is defined as an operating segment or one level below an operating segment. When testing goodwill for impairment, the company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is performed. The company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, the carrying value of goodwill is written down to fair value. To estimate the fair value of each reporting unit, the company utilizes a weighting of the income method and the market method. The income method is based on a discounted future cash flow approach that uses a number of estimates, including revenue based on assumed growth rates, estimated costs and discount rates based on the reporting unit's weighted average cost of capital. Growth rates for each reporting unit are determined based on internal estimates, historical data and external sources. The growth estimates are also used in planning for the company's long-term and short-term business planning and forecasting. We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against comparable market data. The market method is based on financial multiples of companies comparable to each reporting unit and applies a control premium. The carrying value of each reporting unit represents the assignment of various assets and liabilities, excluding corporate assets and liabilities, such as cash, investments and debt. Intangible assets with indefinite useful lives are not subject to amortization and are evaluated annually for impairment, or more frequently, when events or changes in circumstances indicate that the fair value of an intangible asset may not be recoverable. The company utilizes the relief from royalty methodology to test for impairment. The primary assumptions for the relief from royalty method include revenue forecasts, earnings forecasts, royalty rates and discount rates. The company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. The company's indefinite-lived intangible assets consist of certain trade names valued at approximately $78.1 million as of the end of fiscal 2018 and fiscal 2017 . These assets have indefinite useful lives. During fiscal 2017, the company recognized asset impairment expense totaling $7.1 million associated with the Nemschoff trade name, which was recorded within the Specialty operating segment. As of the end of fiscal 2017, the carrying value of the Nemschoff trade name was zero . These impairment expenses are recorded in the Restructuring and impairment expenses line item within the Consolidated Statements of Comprehensive Income. 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, May 28, 2016 $ 305.3 $ 85.2 $ 390.5 Foreign currency translation adjustments (0.7 ) — (0.7 ) Sale of owned dealer (0.1 ) — (0.1 ) Impairment charges — (7.1 ) (7.1 ) Balance, June 03, 2017 $ 304.5 $ 78.1 $ 382.6 Foreign currency translation adjustments (0.1 ) — (0.1 ) Sale of owned dealer (0.3 ) — (0.3 ) Balance, June 02, 2018 $ 304.1 $ 78.1 $ 382.2 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. The company capitalizes certain 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 2018 , outstanding commitments for future capital purchases approximated $49.5 million . Other 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. Amortizable intangible assets within Other amortizable intangibles, net in the Consolidated Balance Sheets consist primarily of patents, trademarks and customer relationships. The customer relationships intangible asset is comprised of relationships with customers, specifiers, networks, dealers and distributors. Refer to the following table for the combined gross carrying value and accumulated amortization for these amortizable intangibles. June 2, 2018 (In millions) Patent and Trademarks Customer Relationships Other Total Gross carrying value $ 22.4 $ 55.3 $ 7.5 $ 85.2 Accumulated amortization 14.7 23.5 5.7 43.9 Net $ 7.7 $ 31.8 $ 1.8 $ 41.3 June 3, 2017 Patent and Trademarks Customer Relationships Other Total Gross carrying value $ 20.5 $ 55.3 $ 7.5 $ 83.3 Accumulated amortization 13.3 19.7 4.9 37.9 Net $ 7.2 $ 35.6 $ 2.6 $ 45.4 The company amortizes these assets over their remaining useful lives using the straight-line method over periods ranging from 5 years to 20 years , or on an accelerated basis, to reflect the expected realization of the economic benefits. It is estimated that the weighted-average remaining useful life of patents and trademarks is approximately 6 years and the weighted-average remaining useful life of customer relationships is 8 years . Estimated amortization expense on existing amortizable intangible assets as of June 2, 2018 , for each of the succeeding five fiscal years, is as follows: (In millions) 2019 $ 5.9 2020 $ 5.6 2021 $ 5.6 2022 $ 5.6 2023 $ 5.6 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 benefit and auto liability retention levels do not include an aggregate stop loss policy. The company's retention levels designated within significant insurance arrangements as of June 2, 2018 , ar e as follows: (In millions) Retention Level (per occurrence) General liability $ 1.00 Auto liability $ 1.00 Workers' compensation $ 0.75 The company accrues for its self-insurance arrangements, as well as reserves for health, prescription drugs, and dental benefit exposures based on actuarially-determined estimates, which are recorded in “Other liabilities” in the Consolidated Balance Sheets. The value of the liability as of June 2, 2018 and June 3, 2017 was $11.2 million and $10.5 million , respectively. 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. Redeemable Noncontrolling Interests Certain minority shareholders in the company's subsidiary Herman Miller Consumer Holdings, Inc. have the right, at specified times over a period of time, to require the company to acquire portions of their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity in the Consolidated Balance Sheets and are carried at the current estimated redemption amounts. The redemption amounts have been estimated based on the fair value of the subsidiary, which was determined based on a weighting of the discounted cash flow and market methods. The discounted cash flow analysis used the present value of projected cash flows and a residual value. To determine the discount rate for the discounted cash flow method, a market-based approach was used to select the discount rates used. Market multiples for comparable companies were used for the market method of valuation. The fair value of the subsidiary is sensitive to changes in projected revenues and costs, the discount rate and the forward multiples of the comparable companies. Changes in the estimated redemption amounts of the noncontrolling interests, subject to put options, are reflected at each reporting period with a corresponding adjustment to Retained earnings. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. See Note 15 - Redeemable Noncontrolling Interests for additional information. 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. R&D costs included in “Design and research” expense in the accompanying Consolidated Statements of Comprehensive Income are $57.1 million , $58.6 million and $62.4 million , in fiscal 2018 , 2017 , and 2016 , 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 $16.0 million , $14.5 million and $14.7 million in fiscal years 2018 , 2017 and 2016 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 and discounts. Programs such as rebates and discounts are adjustments to the selling price and are therefore characterized as a reduction to net sales. 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. In addition to independent retailers, the company also sells product through owned retail channels, including e-commerce and Consumer retail studios. Revenue is recognized on these transactions upon shipment and transfer to the customer of both title and risk of loss. These sales may include provisions involving a right of return. The company reduces revenue for an estimate of potential future product returns related to current period product revenue. When developing the allowance for sales returns, the company considers historical returns and current economic trends. Revenue is recorded net of sales taxes as the company is a pass-through entity for collecting and remitting sales tax. 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 items such 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 item within the Consolidated Statements of Comprehensive Income. Included in these expenses are items such as compensation expense, rental 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 Not e 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 is computed by dividing net earnings by the sum of the weighted-averag e number of shares outstanding, plus all dilutive shares that could potentially be issued. Refe r to Note 8 of the Consolidated Financial Statements for further information regarding the computation of EPS. Comprehensive Income Comprehensive income consists of Net earnings, Foreign currency translation adjustments, Unrealized holding gain on available-for-sale securities, Unrealized gains on interest rate swap agreement and Pension and post-retirement liability adjustments. Refer to Note 14 of the Consolid ated Financial Statements fo r further information regarding comprehensive income. 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 classifies and discloses its fair value measurements 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. Derivatives and Hedging The company calculates the fair value of financial instruments using quoted market prices whenever available. The company utilizes derivatives to manage exposures to foreign currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported within Other expenses (income): Other, net in the Consolidated Statements of Comprehensive Income, or Accumulated Other Comprehensive Loss within the Consolidated Balance Sheets, depending on the use of the derivative and whether it qualifies for hedge accounting treatment. Gains and losses on derivatives that are designated and qualify as cash flow hedging instruments are recorded in Accumulated Other Comprehensive Loss, to the extent the hedges are effective, until the underlying transactions are recognized in the Consolidated Statements of Comprehensive Income. Derivatives not designated as hedging instruments are marked-to-market at the end of each period with the results included in Consolidated Statements of Comprehensive Income. New Accounting Standards Recently Adopted Accounting Standards Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Improvements to Employee Share-Based Payment Accounting Under the new guidance, all excess tax benefits/deficiencies should be recognized as income tax expense/benefit, entities may elect how to account for forfeitures and cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity on the cash flow. June 4, 2017 The company adopted the accounting standard in the first quarter of fiscal 2018. As a result, the company elected to change its policy from estimating forfeitures to recognizing forfeitures when they occur, which resulted in an increase in Retained earnings of $0.1 million, a decrease in Additional paid in capital of $0.3 million and an increase in Other noncurrent assets of $0.2 million in the Condensed Consolidated Balance Sheets. The other impacts resulting from adoption did not have a material impact on the company's Financial Statements. Recently Issued Accounting Standards Not Yet Adopted Standard Description Date of Adoption 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 has completed its review of the impact of the new standard and has identified changes in the determination of performance obligations around product and service revenue. For commercial contracts in which the company sells directly to end customers, in most cases, the company currently delays revenue recognition until the products are shipped and installed and records third-party installation and certain other fees net. However, under the new standard, in most cases, the company will recognize product revenue when title and risk of loss have transferred and will recognize service revenue as the services are performed. Additionally, the company will record certain product pricing elements related to its direct customer sales within Cost of Sales rather than net within revenue as is current practice. The company has determined that these elements relate to the product performance obligation which the company is considered to control under the new standard. The company has implemented changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The company is adopting the standard in fiscal 2019 using the modified-retrospective approach and as a result expects to record an accumulative catch up adjustment of approximately $2 million increase to fiscal 2019 beginning retained earnings. Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard changes the rules related to the income statement presentation of the components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. Under the new guidance, entities must present the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs related to services rendered during the period. Other components of net periodic benefit cost will be presented separately from the line items that include the service cost. Early adoption is permitted. June 3, 2018 The standard is expected to impact the classification of certain costs within the company's Consolidated Statements of Comprehensive Income. No impact to the company's Consolidated Balance Sheets or Consolidated Statements of Cash Flow are expected as a result of the standard. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update allows for the reclassification to retained earnings of the tax effects stranded in Accumulated Other Comprehensive Income resulting from The Tax Cuts and Jobs Act. Early adoption is permitted. June 2, 2019 The company is still evaluating these amendments and has not determined its accounting policy and whether or not an election will be made to reclassify the stranded effects. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities This update amends the hedge accounting recognition and presentation with the objectives of improving the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities and simplifying the application of hedge accounting. The update expands the strategies eligible for hedge accounting, relaxes the timing requirements of hedge documentation and effectiveness assessments and permits the use of qualitative assessments on an ongoing basis to assess hedge effectiveness. The new guidance also requires new disclosures and presentation. June 2, 2019 The company is currently evaluating the impact of adopting this guidance. Recently Issued Accounting Standards Not Yet Adopted (continued) Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Leases Under the updated standard a lessee's rights and obligations under most leases, including existing and new arrangements, would be recognized as assets and liabilities, respectively, on the balance sheet. The standard must be adopted under a modified retrospective approach and early adoption is permitted. June 2, 2019 The standard is expected to have a significant impact on our Consolidated Financial Statements, however the company is currently evaluating the impact. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Jun. 02, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Acquisitions and Divestitures Contract Furniture Dealerships On July 31, 2017, the company completed the sale of a wholly-owned contract furniture dealership in Vancouver, Canada for initial cash consideration of $2.0 million . A pre-tax gain of $1.1 million was recognized as a result of the sale within the caption Selling, general and administrative within the Condensed Consolidated Statements of Comprehensive Income. On January 1, 2017, the company completed the sale of a wholly-owned contract furniture dealership in Pennsylvania in exchange for a $3.0 million note receivable. A pre-tax gain of $0.7 million was recognized as a result of the sale within the caption Selling, general and administrative within the Consolidated Statements of Comprehensive Income. The note receivable was deemed to be a variable interest in a variable interest entity. The carrying value of the note was $2.5 million as of June 2, 2018 and represents the company's maximum exposure to loss. The company is not deemed to be the primary beneficiary of the variable interest entity as the buyers of the dealership control the activities that most significantly impact the entity's economic performance, including sales, marketing and operations. Naughtone Holdings Limited On June 3, 2016, the company acquired a 50 percent noncontrolling equity interest in Naughtone, a leader in soft seating products, stools, occasional tables and meeting tables, for $12.4 million in cash consideration. In the second quarter of fiscal 2017, the company paid additional purchase consideration of approximately $0.6 million as part of the final net equity adjustment. George Nelson Bubble Lamp Product Line Acquisition On September 17, 2015, the company acquired certain assets associated with the George Nelson Bubble Lamp product line, which together constituted the acquisition of a business. Consideration transferred to acquire the assets consisted of $3.6 million in cash transferred during the second quarter of fiscal 2016 and an additional component of performance-based contingent consideration with a fair value of $2.7 million as of the acquisition date. The assets acquired included an exclusive manufacturing agreement and customer relationships with fair values of $2.5 million and $0.6 million , respectively, each having a useful life of 10 years . The excess of the purchase consideration over the fair value of the net assets acquired was $3.2 million and recognized as goodwill within the Consumer reportable segment. The total amount of this goodwill is deductible for tax purposes. |
Inventories
Inventories | 12 Months Ended |
Jun. 02, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure | Inventories (In millions) June 2, 2018 June 3, 2017 Finished goods and work in process $ 124.2 $ 119.0 Raw materials 38.2 33.4 Total $ 162.4 $ 152.4 Inventories valued using LIFO amounted to $25.5 million and $25.2 million as of June 2, 2018 and June 3, 2017 , respectively. If all inventories had been valued using the first-in first-out method, inventories would have been $175.3 million and $164.6 million at June 2, 2018 and June 3, 2017 , respectively. |
Investments in Nonconsolidated
Investments in Nonconsolidated Affiliates | 12 Months Ended |
Jun. 02, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure | Investments in Nonconsolidated Affiliates The company has certain investments in entities that are accounted for using the equity method (“nonconsolidated affiliates”). The investments are included in Other assets in the Consolidated Balance Sheets and the equity earnings are included in Equity earnings from nonconsolidated affiliates, net of tax in the Consolidated Statements of Comprehensive Income. Refer to the tables below for the investment balances that are included in the Consolidated Balance Sheets and for the equity earnings that are included in the Consolidated Statements of Comprehensive Income. (in millions) June 2, 2018 June 3, 2017 Investments in nonconsolidated affiliates $ 16.8 $ 16.2 (in millions) June 2, 2018 June 3, 2017 May 28, 2016 Equity earnings from nonconsolidated affiliates $ 3.0 $ 1.6 $ 0.4 The company had an ownership interest in five nonconsolidated affiliates at June 2, 2018 . Refer to the company's ownership percentages shown below: Ownership Interest June 2, 2018 June 3, 2017 Kvadrat Maharam Arabia DMCC 50.0% 50.0% Kvadrat Maharam Pty Limited 50.0% 50.0% Kvadrat Maharam Turkey JSC 50.0% 50.0% Danskina B.V. 50.0% 50.0% Naughtone Holdings Limited 50.0% 50.0% Kvadrat Maharam The Kvadrat Maharam nonconsolidated affiliates are distribution entities that are engaged in selling decorative upholstery, drapery and wall covering products. At June 2, 2018 and June 3, 2017 , the company's investment value in Kvadrat Maharam Pty was $1.9 million and $ 1.8 million more than the company's proportionate share of the underlying net assets, respectively. 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. Naughtone At June 2, 2018 , the company's investment value in Naughtone was $10.2 million more than the company's proportionate share of the underlying net assets, of which $2.4 million was being amortized over the remaining useful lives of the assets, while $7.8 million was considered a permanent basis difference. The change in the permanent basis difference from the prior year was due to changes in foreign currency exchange rates. At June 3, 2017 , the company's investment value in Naughtone was $9.8 million more than the company's proportionate share of the underlying net assets, of which $2.3 million was being amortized over the remaining useful lives of the assets, while $7.5 million was considered a permanent basis difference. Transactions with Nonconsolidated Affiliates Sales to and purchases from nonconsolidated affiliates were as follows for the periods presented below: (in millions) June 2, 2018 June 3, 2017 May 28, 2016 Sales to nonconsolidated affiliates $ 4.3 $ 4.0 $ 2.5 Purchases from nonconsolidated affiliates $ 6.8 $ 4.2 $ 0.9 Balances due to or due from nonconsolidated affiliates were as follows for the periods presented below: (in millions) June 2, 2018 June 3, 2017 Receivables from nonconsolidated affiliates $ 0.9 $ 0.8 Payables to nonconsolidated affiliates $ 1.0 $ 0.5 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 02, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt Long-term debt consisted of the following obligations: (In millions) June 2, 2018 June 3, 2017 Series B Senior Notes, 6.42%, due January 3, 2018 $ — $ 149.9 Debt securities, 6.0%, due March 1, 2021 50.0 50.0 Syndicated Revolving Line of Credit, due September 2021 225.0 — Construction-Type Lease 7.0 7.0 Supplier financing program 3.8 3.2 Total debt $ 285.8 $ 210.1 Less: Current debt (10.8 ) (10.2 ) Long-term debt $ 275.0 $ 199.9 The company's syndicated revolving line of credit provides the company with up to $400 million in revolving variable interest borrowing capacity and includes an "accordion feature" allowing the company to increase, at its option and subject to the approval of the participating banks, the aggregate borrowing capacity of the facility by $200 million . The facility expires in September 2021 and outstanding borrowings bear interest at rates based on the prime rate, federal funds rate, LIBOR or negotiated rates as outlined in the agreement. Interest is payable periodically throughout the period if borrowings are outstanding. On January 3, 2018, the company borrowed $225.0 million on its existing revolving line of credit. Of these proceeds, $150.0 million was used to repay its Series B senior notes upon maturity, while the rest of the proceeds was designated for general business purposes. As of June 2, 2018 , the total debt outstanding related to borrowings under the syndicated revolving line of credit was $225.0 million . Available borrowings against this facility were $166.8 million due to $8.2 million related to outstanding letters of credit. As of June 3, 2017 , there were zero outstanding borrowings against this facility and available borrowings were $391.7 million due to $8.3 million 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 :1 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 and extraordinary items. At June 2, 2018 and June 3, 2017 , the company was in compliance with all of these restrictions and performance ratios. Supplier Financing Program The company has an agreement with a third party financial institution to provide a platform that allows certain participating suppliers the ability to finance payment obligations from the company. Under this program, participating suppliers may finance payment obligations of the company, prior to their scheduled due dates, at a discounted price to the third party financial institution. The company has lengthened the payment terms for certain suppliers that have chosen to participate in the program. As a result, certain amounts due to suppliers have payment terms that are longer than standard industry practice and as such, these amounts have been excluded from the caption “Accounts payable” in the Condensed Consolidated Balance Sheets as the amounts have been accounted for by the company as a current debt obligation. Accordingly, $3.8 million and $3.2 million have been recorded within the caption “Other accrued liabilities” for the periods ended June 2, 2018 and June 3, 2017, respectively. Construction-Type Lease During fiscal 2015, the company entered into a lease agreement for the occupancy of a new studio facility in Palo Alto, California. During fiscal 2017, the company became the deemed owner of the leased building for accounting purposes as a result of the company's involvement during the construction phase of the project. The lease is therefore accounted for as a financing transaction and the recorded asset and related financing obligation have been recorded in the Consolidated Balance Sheets within both Construction in progress and Other accrued liabilities for the fiscal periods ended June 2, 2018 and June 3, 2017. The value of the building and the related financing liability was $7.0 million at June 2, 2018 and June 3, 2017. The original fair value of the building and the related financing liability was determined through a blend of an income approach, comparable property sales approach and a replacement cost approach. Upon completion of construction, the liability will be reclassified into Long-term debt. Annual maturities of long-term debt for the five fiscal years subsequent to June 2, 2018 are as shown in the table below. (In millions) 2019 $ — 2020 $ — 2021 $ 50.0 2022 $ 225.0 2023 $ — Thereafter $ — |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 02, 2018 | |
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 June 2, 2018 , are as follows: (In millions) 2019 $ 45.8 2020 $ 42.8 2021 $ 40.5 2022 $ 43.1 2023 $ 32.5 Thereafter $ 123.8 Total rental expense charged to operations was $49.3 million , $45.3 million and $45.6 million , in fiscal 2018 , 2017 and 2016 , respectively. Substantially all such rental expense represented the minimum rental payments under operating leases. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 02, 2018 | |
Retirement Benefits [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 The company offers certain employees retirement benefits under domestic defined benefit p lans. 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 remaining 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 2018 2017 2018 2017 (In millions) Domestic International Domestic International Change in benefit obligation: Benefit obligation at beginning of year $ 1.0 $ 113.8 $ 1.0 $ 104.4 $ 5.0 $ 5.9 Interest cost 0.1 2.7 0.1 2.7 0.1 0.2 Foreign exchange impact — 4.2 — (12.5 ) — — Actuarial (gain) loss — (12.2 ) — 23.4 (0.5 ) (0.4 ) Benefits paid (0.1 ) (2.6 ) (0.1 ) (4.2 ) (0.6 ) (0.7 ) Benefit obligation at end of year $ 1.0 $ 105.9 $ 1.0 $ 113.8 $ 4.0 $ 5.0 Change in plan assets: Fair value of plan assets at beginning of year $ — $ 80.5 $ — $ 85.0 $ — $ — Actual return on plan assets — 1.2 — 9.6 — — Foreign exchange impact — 2.8 — (10.3 ) — — Employer contributions 0.1 12.7 0.1 0.4 0.6 0.7 Benefits paid (0.1 ) (2.6 ) (0.1 ) (4.2 ) (0.6 ) (0.7 ) Fair value of plan assets at end of year $ — $ 94.6 $ — $ 80.5 $ — $ — Funded status: Under funded status at end of year $ (1.0 ) $ (11.3 ) $ (1.0 ) $ (33.3 ) $ (4.0 ) $ (5.0 ) Components of the amounts recognized in the Consolidated Balance Sheets: Current liabilities $ (0.1 ) $ — $ (0.1 ) $ — $ (0.6 ) $ (0.7 ) Non-current liabilities $ (0.9 ) $ (11.3 ) $ (0.9 ) $ (33.3 ) $ (3.4 ) $ (4.3 ) Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: Unrecognized net actuarial loss (gain) $ 0.3 $ 40.8 $ 0.3 $ 50.9 $ (1.1 ) $ (0.6 ) Accumulated other comprehensive loss $ 0.3 $ 40.8 $ 0.3 $ 50.9 $ (1.1 ) $ (0.6 ) The accumulated benefit obligation for the company's domestic pension benefit plans tota led $1.0 million as of the end of both fiscal 2018 and fiscal 2017 . For its international plans, the accumulated benefit obligation tota led $102.2 million and $110.0 million as of fiscal 2018 and fiscal 2017 , respectively. The following table summarizes the totals for pension plans with accumulated benefit obligations in excess of plan assets: Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (In millions) 2018 2017 Projected benefit obligation $ 106.9 $ 114.8 Accumulated benefit obligation $ 103.1 $ 111.0 Fair value of plan assets $ 94.6 $ 80.5 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) 2018 2017 2016 2018 2017 2016 Domestic: Interest cost $ 0.1 $ 0.1 $ — $ 0.1 $ 0.2 $ 0.2 Net periodic benefit cost $ 0.1 $ 0.1 $ — $ 0.1 $ 0.2 $ 0.2 International: Interest cost $ 2.7 $ 2.7 $ 3.8 Expected return on plan assets (5.6 ) (4.7 ) (5.4 ) Net amortization 4.2 2.2 2.8 Net periodic benefit cost $ 1.3 $ 0.2 $ 1.2 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income): Pension Benefits Post-Retirement Benefits (In millions) 2018 2017 2018 2017 Domestic: Net actuarial gain $ — $ — $ (0.5 ) $ (0.4 ) Total recognized in other comprehensive loss $ — $ — $ (0.5 ) $ (0.4 ) International: Net actuarial (gain) loss $ (7.7 ) $ 18.6 Net amortization (4.2 ) (2.2 ) Total recognized in other comprehensive loss $ (11.9 ) $ 16.4 The net actuarial loss, incl uded in accumulated other comprehensive loss (pretax), expected to be recognized in net periodic benefit cost during fiscal 2019 is $2.9 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: 2018 2017 2016 (Percentages) Domestic International Domestic International Domestic International Discount rate 3.53 2.49 3.51 3.43 3.41 3.50 Compensation increase rate n/a 3.25 n/a 2.95 n/a 3.20 Expected return on plan assets n/a 6.10 n/a 6.10 n/a 6.10 The weighted-average used in the determination of the projected benefit obligations: Discount rate 3.99 2.87 3.53 2.49 3.51 3.43 Compensation increase rate n/a 3.10 n/a 3.25 n/a 2.95 Effective May 28, 2016, the company changed the method it uses to estimate the interest component of net periodic benefit cost for pension and other postretirement benefits. Historically, the company has estimated the interest cost component utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The company has elected to utilize a full yield curve approach in the estimation of interest cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The company has made this change to provide a more precise measurement of interest cost by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. The company accounted for this change as a change in accounting estimate and accordingly, accounted for it prospectively. The impact of this change on consolidated earnings for fiscal 2018 and 2017 was a reduction of the interest cost component of net periodic benefit cost of approximately $0.3 million and $0.4 million . In calculating post-retirement benefit obligations for fiscal 2018 , a 7.1 percent annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2019, decreasing gradually to 4.3 percent by 2038 and remaining at that level thereafter. For purposes of calculating post-retirement benefit costs, a 7.5 percent annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2018 , decreasing gradually to 4.3 percent by 2038 an d 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 2018 service and interest cost components $ — $ — Effect on post-retirement benefit obligation at June 2, 2018 $ 0.1 $ (0.1 ) Plan Assets and Investment Strategies 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 2018 and asset categories for the company's primary international pension plan for fiscal 2018 and 2017 are as follows: Asset Category Targeted Asset Allocation Percentage Percentage of Plan Assets at Year End 2018 2017 2018 2017 Fixed income 35 20 36 27 Common collective trusts 65 80 64 73 Total 100 100 (In millions) International Plan as of June 2, 2018 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 0.2 $ — $ 0.2 Foreign government obligations — 33.4 33.4 Common collective trusts-balanced — 61.0 61.0 Total $ 0.2 $ 94.4 $ 94.6 (In millions) International Plan as of June 3, 2017 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 0.2 $ — $ 0.2 Foreign government obligations — 21.4 21.4 Common collective trusts-balanced — 58.9 58.9 Total $ 0.2 $ 80.3 $ 80.5 Cash Flows The company reviews pension funding requirements to determine the contribution to be made in the next year. Actual contributions will be dependent upon investment returns, changes in pension obligations and other economic and regulatory factors. During fiscal 2018 , the company made total cash contributions of $13.4 million to its benefit plans. In fiscal 2017 , the company made total cash contributions of $1.1 million to its benefit 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 June 2, 2018 . (In millions) Pension Benefits Domestic Pension Benefits International Post-Retirement Benefits 2019 $ 0.1 $ 2.0 $ 0.6 2020 $ 0.1 $ 2.0 $ 0.5 2021 $ 0.1 $ 2.1 $ 0.5 2022 $ 0.1 $ 2.5 $ 0.4 2023 $ 0.1 $ 2.4 $ 0.4 2024-2028 $ 0.3 $ 16.5 $ 1.4 Profit Sharing, 401(k) Plan, and Core Contribution Substantially all of the company’s domestic employees are eligible to participate in a defined contribution retirement plan, primarily the Herman Miller, Inc. profit sharing and 401(k) plan (the "plan"). Employees under the plan are eligible to begin participating on their date of hire. Until June 4, 2017, the plan provided for discretionary contributions for eligible participants, payable in the company's common stock, of not more than 6 percent of employees' wages based on the company's financial performance. Effective June 4, 2017, the company discontinued the Employer Profit Sharing Contribution and instead, began allocating those funds to other components of pay and retirement. Under the plan the company matches 100 percent of employee contributions to their 401(k) accounts up to 3 percent of their pay. Effective September 3, 2017, the company increased the Employer Matching Contribution from 3 percent to 4 percent for all eligible employees. A core contribution of 4 percent is also included for most participants of the plan. There was an additional 1 percent contribution added to the quarterly Core Contribution for the quarter prior to the increased Employer Matching Contribution effective September 3, 2017. The company’s other defined contribution retirement plans may provide for matching contributions, non-elective contributions and discretionary contributions as declared by management. The cost of the Herman Miller, Inc. profit sharing contribution during fiscal 2017 and 2016 was $6.0 million and $10.9 million , respectively. No profit sharing contribution was made in fiscal 2018. The expense recorded for the company's 401(k) matching contributions and core contributions was approximately $24.9 million , $22.8 million and $21.9 million in fiscal years 2018 , 2017 and 2016 , respectively. |
Common Stock and Per Share Info
Common Stock and Per Share Information | 12 Months Ended |
Jun. 02, 2018 | |
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) 2018 2017 2016 Numerator: Numerator for both basic and diluted EPS, Net earnings attributable to Herman Miller, Inc. $ 128.1 $ 123.9 $ 136.7 Denominator: Denominator for basic EPS, weighted-average common shares outstanding 59,681,268 59,871,805 59,844,540 Potentially dilutive shares resulting from stock plans 630,037 682,784 684,729 Denominator for diluted EPS 60,311,305 60,554,589 60,529,269 Equity awar ds of 348,089 shares , 764,154 shares and 528,676 shares of common stock were excluded from the denominator for the computation of diluted earnings per share for the fiscal years ended June 2, 2018 , June 3, 2017 and May 28, 2016 , respectively, because they were anti-dilutive. The company has certain share-based payment awards that meet the definition of participating securities. Common Stock The company has a share repurchase plan authorized by the Board of Directors on September 28, 2007, which provided share repurchase authorization of $300.0 million with no specified expiration date. During fiscal year 2018 , 2017 , and 2016 , shares repurchased and retired totaled 1,356,156 , 765,556 , and 482,040 shares respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 02, 2018 | |
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. At June 2, 2018 there were 5,991,307 shares authorized under the various stock-based compensation plans. 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. 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) June 2, 2018 June 3, 2017 May 28, 2016 Employee stock purchase program $ 0.3 $ 0.3 $ 0.3 Stock option plans 2.6 2.0 1.9 Restricted stock units 3.9 3.6 3.2 Performance share units 0.9 2.8 6.5 Total $ 7.7 $ 8.7 $ 11.9 Tax benefit $ 2.3 $ 3.1 $ 4.3 As of June 2, 2018 , total pre-tax stock-based compensation cost not yet recognized related to non-vested awards was approximately $7.8 million . The weighted-average period over which this amount is expected to be recognized is 0.79 years . 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. Shares of common stock purchased under the employee stock purchase plan were 67,335 , 68,547 , and 70,768 for the fiscal years ended 2018 , 2017 and 2016 respectively. Stock Option Plans The company has stock option plans under which options to purchase the company's stock may be granted to employees and non-employee directors 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 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 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: 2018 2017 2016 Risk-free interest rates (1) 1.79 % 1.01 % 1.51 % Expected term of options (2) 4.6 years 4.0 years 4.0 years Expected volatility (3) 26 % 26 % 33 % Dividend yield (4) 2.23 % 2.13 % 2.03 % 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 $ 6.39 $ 5.50 $ 6.73 (1) Represents term-matched, zero-coupon risk-free rate from the Treasury Constant Maturity yield curve, continuously compounded. (2) Represents historical settlement data, using midpoint scenario with 1-year grant date filter assumption for outstanding options. (3) The blended volatility approach was used. 90% term-matched historical volatility from daily stock prices and 10% percent weighted average implied volatility from the 90 days preceding the grant date. (4) Represents the quarterly dividend divided by the three-month average stock price as of the grant date, annualized and continuously compounded. 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 June 3, 2017 1,329,702 $ 28.36 7.26 $ 5.8 Granted at market 323,412 $ 33.75 Exercised (538,259 ) $ 27.28 Forfeited or expired (51,606 ) $ 32.83 Outstanding at June 2, 2018 1,063,249 $ 30.33 7.45 $ 2.9 Ending vested + expected to vest 1,063,249 $ 30.33 7.45 $ 2.9 Exercisable at end of period 265,519 $ 23.96 4.78 $ 2.4 The weighted-average remaining recognition period of the outstanding stock options at June 2, 2018 was 0.75 years . The total pre-tax intrinsic value of options exercised during fiscal 2018 , 2017 and 2016 was $5.0 million , $1.3 million and $2.3 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. Total cash received during fiscal 2018 from the exercise of stock options was $4.4 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 Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value in Millions Weighted-Average Remaining Contractual Term (Years) Outstanding at June 3, 2017 384,952 $ 28.73 $ 12.6 1.14 Granted 242,012 $ 35.28 Forfeited (19,233 ) $ 30.86 Released (126,704 ) $ 27.75 Outstanding at June 2, 2018 481,027 $ 32.20 $ 15.8 1.28 Ending vested + expected to vest 481,027 32.20 $ 15.8 1.28 The weighted-average remaining recognition period of the outstanding restricted stock units at June 2, 2018 , was 1.15 years. The fair value of the share units that vested during the twelve months ended June 2, 2018 , was $4.3 million . The weighted average grant-date fair value of restricted stock units granted during 2018 , 2017 , and 2016 was $35.28 , $31.83 and $29.03 respectively. 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 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. The following is a summary of performance share unit transactions for the fiscal years indicated: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value in Millions Weighted-Average Remaining Contractual Term (Years) Outstanding at June 3, 2017 417,947 $ 31.18 $ 13.7 1.03 Granted 129,131 $ 31.28 Forfeited (42,339 ) $ 34.27 Released (130,179 ) $ 31.47 Outstanding at June 2, 2018 374,560 $ 30.76 $ 12.3 1.01 Ending vested + expected to vest 374,560 $ 30.76 $ 12.3 1.01 The weighted-average remaining recognition period of the outstanding performance share units at June 2, 2018 , was 0.73 years. The fair value for shares that vested during the twelve months ended June 2, 2018 , was $4.5 million . The weighted average grant-date fair value of performance share units granted during 2018 , 2017 , and 2016 was $31.28 , $29.40 , and $30.81 respectively. 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 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 . Certain of these options have been classified as liability awards as the holders have the right to put the underlying shares to the company immediately 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 using the Black-Scholes model. The expense for these awards was $0.6 million during fiscal 2018 and the related liability for these awards was $0.9 million as of the end of fiscal 2018 . The liability for the HMCH stock options is recorded within the Consolidated Balance Sheets within the "Other liabilities" line item. The following weighted-average assumptions were used to value the liability associated with HMCH stock options as of June 2, 2018 and June 3, 2017 : 2018 2017 Risk-free interest rates (1) 2.29 % 1.29 % Expected term of options (2) 1.1 years 2.1 years Expected volatility (3) 35 % 35 % Dividend yield not applicable not applicable Strike price $ 30.64 24.39 Per share value (4) $ 8.24 3.24 (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. (3) Amount is determined based on analysis of historical price volatility of the common stock of peer companies over a period equal to the expected term of the options. (4) Based on the Black-Scholes formula. Shares Under Option Weighted-Average Exercise Prices Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at June 3, 2017 526,244 $ 24.20 2.20 $ 0.1 Granted 28,810 $ 21.08 Forfeited (10,928 ) $ 24.39 Outstanding at June 2, 2018 544,126 $ 24.04 1.20 $ 3.6 Exercisable at end of period 75,568 $ 21.83 1.20 $ 0.6 There wer e no H MCH options exercised during fiscal 2018 . The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the HMCH market price, less the strike 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. Deferred Compensation Plan 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 ( $275,000 in 2018 ). 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. The Nonemployee Officer and Director Deferred Compensation Plan allows the Board of Directors of the company to defer a portion of their annual director fee. Investment options are the same as those available under the Herman Miller Profit Sharing and 401(k) Plan, including company stock. In accordance with the terms of the Executive Equalization Plan and Nonemployee Officer and Director Deferred Compensation Plan, the salary and bonus deferrals, company contributions and director fee deferrals 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. Investments in securities other than the company's common stock are included within the Other assets line item, while investments in the company's stock are included in the line item Key executive deferred compensation in the company's Consolidated Balance Sheets. 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 Net earnings in 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: 2018 2017 2016 Shares of common stock 8,828 9,982 21,988 Shares through the deferred compensation program 2,207 2,582 3,118 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 02, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law in the United States. The effects of the Act included the reduction of the federal corporate income tax rate from 35 percent to 21 percent and a new participation exemption system of taxation on foreign earnings, among other provisions. Effective January 1, 2018 the federal income tax rate was reduced from 35 percent to 21 percent . For fiscal tax payers a full year federal income tax rate is calculated based upon the number of days in the year subject to the 35 percent and the 21 percent tax rates. As a result, the company’s statutory federal tax rate for the fiscal year ended June 2, 2018 was 29.1 percent. Securities and Exchange Commission Staff Accounting Bulletin No. 118 allows the use of provisional amounts if accounting for certain income tax effects of the Act has not been completed by the time the company’s financial statements are issued. A measurement period is provided beginning December 22, 2017 and shall not last longer than one year. Provisional amounts must be adjusted during the measurement period as accounting for the income tax effects of the Act is completed. For the fiscal year ended June 2, 2018, the company has not completed its accounting for all of the effects of the Act. The Act is comprehensive and further guidance is expected from the Internal Revenue Service and the U.S. Treasury Department. Based on our analysis of the Act to date, we have provided the following reasonable estimates. The fiscal year ended June 2, 2018 included a provisional amount of $3 million in reduced income tax expense resulting from the reduced federal income tax rate. Additionally, as part of the transition towards the participation exemption system, in the fiscal period ended June 2, 2018, the company recorded a provisional U.S. tax liability of $9 million on certain undistributed foreign earnings, which is payable over eight years. The one-time tax is based in part on the amount of foreign earnings held in cash and other specified assets as of June 2, 2018. Finally, a favorable impact totaling $8.9 million was recognized as a result of applying the lower federal income tax rates to the company’s net deferred tax liabilities. Upon enactment of the new law in our three-month period ended March 3, 2018, we had disclosed an initial favorable impact of $8.7 million applying lower federal income tax rates to the company’s net deferred tax liabilities and an initial $9.2 million U.S. tax liability on certain undistributed foreign earnings. These amounts, as noted above, were adjusted as of June 2, 2018 due to an analysis of additional available information as well as further clarification with respect to the new laws. The company will continue to refine its calculations as additional analysis is completed and further guidance is issued. These changes could be material to the consolidated financial statements. For tax years beginning after December 31, 2017, the Act subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The company is still evaluating the effects of the GILTI provisions and has not yet determined its accounting policy. The components of earnings before income taxes are as follows: (In millions) 2018 2017 2016 Domestic $ 121.6 $ 131.4 $ 154.9 Foreign 46.5 46.2 41.7 Total $ 168.1 $ 177.6 $ 196.6 The provision (benefit) for income taxes consists of the following: (In millions) 2018 2017 2016 Current: Domestic - Federal $ 30.2 $ 28.7 $ 36.4 Domestic - State 4.3 2.3 6.4 Foreign 10.7 11.1 6.3 45.2 42.1 49.1 Deferred: Domestic - Federal (4.1 ) 9.2 7.5 Domestic - State 0.1 2.8 0.2 Foreign 1.2 1.0 2.7 (2.8 ) 13.0 10.4 Total income tax provision $ 42.4 $ 55.1 $ 59.5 The following table represents a reconciliation of income taxes at the United States blended statutory rate of 29.1 percent for 2018 and 35.0 percent for 2017 and 2016 with the effective tax rate as follows: (In millions) 2018 2017 2016 Income taxes computed at the United States Statutory rate $ 49.0 $ 62.2 $ 68.8 Increase (decrease) in taxes resulting from: Remeasurement of U.S. deferred tax assets and liabilities due to the Tax Act (8.9 ) — — U.S. tax liability on undistributed foreign earnings due to the Tax Act 9.0 — — Foreign statutory rate differences (4.0 ) (5.7 ) (4.3 ) Manufacturing deduction under the American Jobs Creation Act of 2004 (2.7 ) (3.4 ) (4.8 ) State taxes 3.3 3.8 5.2 United Kingdom patent box deduction for research and development (1.8 ) (2.6 ) (1.7 ) Research and development credit (2.4 ) (1.4 ) (1.4 ) Sale of manufacturing facility in the United Kingdom — — (1.6 ) Other, net 0.9 2.2 (0.7 ) Income tax expense $ 42.4 $ 55.1 $ 59.5 Effective tax rate 25.2 % 31.1 % 30.3 % The tax effects and types of temporary differences that give rise to significant components of the deferred tax assets and liabilities at June 2, 2018 and June 3, 2017 , are as follows: (In millions) 2018 2017 Deferred tax assets: Compensation-related accruals $ 15.3 $ 22.7 Accrued pension and post-retirement benefit obligations 6.6 10.9 Deferred revenue 5.6 5.3 Inventory related 1.0 4.1 Reserves for uncollectible accounts and notes receivable 0.6 1.0 Other reserves and accruals 5.2 6.1 Warranty 11.9 17.0 State and local tax net operating loss carryforwards and credits 2.3 2.7 Federal net operating loss carryforward 1.7 5.0 Foreign tax net operating loss carryforwards and credits 10.0 10.0 Accrued step rent and tenant reimbursements 3.8 4.7 Other 3.9 4.2 Subtotal 67.9 93.7 Valuation allowance (10.3 ) (10.0 ) Total $ 57.6 $ 83.7 Deferred tax liabilities: Book basis in property in excess of tax basis $ (25.5 ) $ (37.4 ) Intangible assets (32.3 ) (47.3 ) Other (6.9 ) (3.2 ) Total $ (64.7 ) $ (87.9 ) 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 June 2, 2018 , the company had state and local tax NOL carry-forwards of $29.4 million , the state tax benefit of which is $1.6 million , which have various expiration periods from 1 to 21 years. The company also had state credits with a state tax benefit of $0.7 million , which expire in 2 to 6 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 $1.1 million . At June 2, 2018 , the company had federal NOL carry-forwards of $8.1 million , the tax benefit of which is $1.7 million , which expire in 11 years. For financial statement purposes, the NOL carry-forwards have been recognized as deferred tax assets. At June 2, 2018 , the company had federal deferred assets of $2.0 million , the tax benefit of which is $0.4 million , which is related to investments in various foreign joint ventures. For financial statement purposes, the assets have been recognized as deferred tax assets, subject to a valuation allowance of $0.4 million . At June 2, 2018 , the company had foreign net operating loss carry-forwards of $43.8 million , the tax benefit of which is $10.0 million , which have expiration periods from 6 years to an unlimited term. The company also had foreign tax credits with a tax benefit of $0.1 million which expire in 2 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 $8.1 million . At June 2, 2018 , the company had foreign deferred assets of $3.4 million , the tax benefit of which is $0.6 million , which is related to various deferred taxes in Hong Kong and Brazil as well as buildings in the United Kingdom. For financial statement purposes, the assets have been recognized as deferred tax assets, subject to a valuation allowance of $0.6 million . The company has recorded transition tax on undistributed foreign earnings as required by the Act. No other provision was made for income taxes that may result from future remittances of the undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested, which was $181.3 million on June 2, 2018. Determination of the total amount of unrecognized deferred income tax on undistributed earnings of foreign subsidiaries is not practicable. The components of the company's unrecognized tax benefits are as follows: (In millions) Balance at May 28, 2016 $ 1.7 Increases related to current year income tax positions 0.3 Increases related to prior year income tax positions 1.1 Decreases related to prior year income tax positions (0.1 ) Decreases related to lapse of applicable statute of limitations (0.1 ) Decreases related to settlements (0.1 ) Balance at June 3, 2017 2.8 Increases related to current year income tax positions 0.3 Increases related to prior year income tax positions 0.4 Decreases related to lapse of applicable statute of limitations (0.3 ) Balance at June 2, 2018 $ 3.2 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 in its Consolidated Statements of Comprehensive Income. Interest and penalties and the related liability, which are excluded from the table above, were as follows for the periods indicated: (In millions) June 2, 2018 June 3, 2017 May 28, 2016 Interest and penalty expense (income) $ 0.1 $ 0.2 $ (0.1 ) Liability for interest and penalties $ 1.0 $ 0.8 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 2017 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 2015. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 02, 2018 | |
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, redeemable noncontrolling interests and foreign currency exchange contracts. The company's financial instruments, other than long-term debt, are recorded at fair value. The fair value of fixed rate debt was based on third-party quotes (Level 2). 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) June 2, 2018 June 3, 2017 Carrying value $ 285.8 $ 210.1 Fair value $ 288.6 $ 223.2 The following describes the methods the company uses to estimate the fair value of financial assets and liabilities. In fiscal 2018, the company borrowed on its revolver and invested excess cash in cash and cash equivalents. There were no other no significant changes in the current period. Cash equivalents — The company invests excess cash in short term investments in the form of commercial paper and money market funds. Commercial paper is valued at amortized costs while money market funds are valued using net asset value. Available-for-sale securities — The company's available-for-sale marketable securities primarily include exchange equity and fixed income mutual funds and government obligations. These investments are recorded at fair value using quoted prices for similar securities. Foreign currency exchange contracts — The company's foreign currency exchange contracts are valued using an approach based on foreign currency exchange rates obtained from active markets. The estimated fair value of forward currency exchange contracts is based on month-end spot rates as adjusted by current market-based activity. Interest rate swap agreement — The company's interest rate swap agreement value is determined using a market approach based on rates obtained from active markets. The interest rate swap agreement is designated as a cash flow hedging instrument. 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. Other — The company's redeemable noncontrolling interests are deemed to be a recurring level 3 fair value measurement. Refer to Note 15 for further information regarding redeemable noncontrolling interests. The purchase price allocation performed to determine fair value of the underlying assets and liabilities associated with the equity investment in Naughtone during fiscal 2017 utilized nonrecurring level 3 fair value measurements. Refer to Note 4 for further information regarding the investment in Naughtone. Nonrecurring level 3 fair value measurements were used to determine the fair value of the Nemschoff trade name, which was impaired during fiscal 2017. Refer to Note 16 for further information regarding the Nemschoff trade name impairment. Nonrecurring level 3 fair value measurements were used to determine the fair value of the building and the related financing liability associated with a construction-type lease related to a new DWR studio in Palo Alto, California. Refer to Note 5 for further information related to this lease. 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 June 2, 2018 and June 3, 2017 : Fair Value Measurements June 2, 2018 June 3, 2017 (In millions) Financial Assets Quoted Prices With Other Observable Inputs (Level 2) Management Estimates (Level 3) Quoted Prices With Other Observable Inputs (Level 2) Management Estimates (Level 3) Cash Equivalents $ 121.0 $ — $ — $ — Available-for-sale securities: Mutual funds - fixed income 7.7 — 7.7 — Mutual funds - equity 0.9 — 0.9 — Foreign currency forward contracts 0.4 — 0.5 — Interest rate swap agreement 15.0 — 3.3 — Deferred compensation plan 15.1 — 12.8 — Total $ 160.1 $ — $ 25.2 $ — Financial Liabilities Foreign currency forward contracts $ 0.3 $ — $ 0.6 $ — Contingent consideration — 0.5 — 0.5 Total $ 0.3 $ 0.5 $ 0.6 $ 0.5 The table below presents a reconciliation for liabilities measured at fair value using significant unobservable inputs (Level 3) (in millions): (In millions) Contingent Consideration June 2, 2018 June 3, 2017 Beginning balance $ 0.5 $ 2.7 Net realized losses (gains) 0.1 (0.2 ) Settlements (0.1 ) (2.0 ) Ending balance $ 0.5 $ 0.5 The contingent consideration liabilities represent future payment obligations that relate to business and product line acquisitions. These payments are based on the future performance of the acquired businesses. The contingent consideration liabilities are valued using estimates based on discount rates that reflect the risk involved and the projected sales and earnings of the acquired businesses. The estimates are updated and the liabilities are adjusted to fair value on a quarterly basis. The following is a summary of the carrying and market values of the company's marketable securities as of the dates indicated: June 2, 2018 June 3, 2017 (In millions) Cost Unrealized Gain Unrealized Loss Market Value Cost Unrealized Gain Unrealized Loss Market Value Mutual funds - fixed income $ 7.8 $ — $ 0.1 $ 7.7 $ 7.6 $ 0.1 $ — $ 7.7 Mutual funds - equity 0.7 0.2 — 0.9 0.9 — — 0.9 Total $ 8.5 $ 0.2 $ 0.1 $ 8.6 $ 8.5 $ 0.1 $ — $ 8.6 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. These adjustments are also included within the caption Unrealized holding gain within the Condensed Consolidated Statements of Comprehensive Income. Unrealized gains recognized in the company's Condensed Consolidated Statement of Comprehensive Income related to available-for-sale securities were zero for the fiscal year ended June 2, 2018 and $0.1 million for the fiscal year ended June 3, 2017 . 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. 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. Derivative Instruments and Hedging Activities Foreign Currency Forward Contracts The company transacts business in various foreign currencies and has established a program that primarily utilizes foreign currency forward contracts to 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. The notional amounts of the forward contracts held to purchase and sell U.S. dollars in exchange for other major international currencies were $37.3 million and $36.1 million as of June 2, 2018 and June 3, 2017 , respectively. 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 £19.9 million and £19.4 million as of June 2, 2018 and June 3, 2017 , respectively . The company also has other forward contracts related to other currency pairs at varying notional amounts. Interest Rate Swaps The company enters into interest rate swap agreements to manage its exposure to interest rate changes and its overall cost of borrowing. The company's interest rate swap agreements were entered into to exchange variable rate interest payments for fixed rate payments over the life of the agreement without the exchange of the underlying notional amounts. The notional amount of the interest rate swap agreements is used to measure interest to be paid or received and does not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. The interest rate swaps were designated cash flow hedges at inception and remain an effective accounting hedge as of June 2, 2018 . Since a designated derivative meets hedge accounting criteria, the fair value of the hedge is recorded in the Consolidated Statement of Stockholders’ Equity as a component of Accumulated other comprehensive loss, net of tax. The ineffective portion of the change in fair value of the derivatives is immediately recognized in earnings. The interest rate swap agreements are assessed for hedge effectiveness on a quarterly basis. In September 2016, the company entered into an interest rate swap agreement. The interest rate swap is for an aggregate notional amount of $150.0 million with a forward start date of January 3, 2018 and a termination date of January 3, 2028. As a result of the transaction, the company effectively converted indebtedness anticipated to be borrowed on the company’s revolving line of credit up to the notional amount from a LIBOR-based floating interest rate plus applicable margin to a 1.949 percent fixed interest rate plus applicable margin under the agreement as of the forward start date. In June 2017, the company entered into an interest rate swap agreement. The interest rate swap is for an aggregate notional amount of $75.0 million with a forward start date of January 3, 2018 and a termination date of January 3, 2028. As a result of the transaction, the company effectively converted the company’s revolving line of credit up to the notional amount from a LIBOR-based floating interest rate plus applicable margin to a 2.387 percent fixed interest rate plus applicable margin under the agreement as of the forward start date. The fair value of the company’s two outstanding interest rate swap agreements was an asset of $15.0 million and $3.3 million as of June 2, 2018 and June 3, 2017 , respectively. The asset fair value was recorded within Other noncurrent assets within the Condensed Consolidated Balance Sheets. The net unrealized gain recorded within Other comprehensive loss, net of tax, for the effective portion of the company's designated cash flow hedges was $7.8 million and $2.1 million for the fiscal years ended June 2, 2018 and June 3, 2017 , respectively. For fiscal 2018, 2017 and 2016, there were no gains or losses recognized against earnings for hedge ineffectiveness. Effects of Derivatives on the Financial Statements The effects of derivatives on the consolidated financial statements were as follows for the fiscal years ended 2018 and 2017 (amounts presented exclude any income tax effects): (In millions) Balance Sheet Location June 2, 2018 June 3, 2017 Designated derivatives: Interest rate swap Long-term assets: Other assets $ 15.0 $ 3.3 Non-designated derivatives: Foreign currency forward contracts Current assets: Other $ 0.4 $ 0.5 Foreign currency forward contracts Current liabilities: Other accrued liabilities $ 0.3 $ 0.6 Fiscal Year (In millions) Statement of Comprehensive Income Location June 2, 2018 June 3, 2017 May 28, 2016 Gain recognized on foreign currency forward contracts Other expenses (income): Other, net $ 0.4 $ (1.2 ) $ (0.7 ) The gain recorded, net of income taxes, in Other comprehensive loss for the effective portion of designated derivatives was as follows for the periods presented below: Fiscal Year (In millions) June 2, 2018 June 3, 2017 May 28, 2016 Interest rate swap $ 7.5 $ 2.1 $ — Losses reclassified from Accumulated other comprehensive loss into earnings were $0.3 million . There were no reclassifications required in fiscal 2017 and 2016. |
Warranties, Guarantees, and Con
Warranties, Guarantees, and Contingencies | 12 Months Ended |
Jun. 02, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees | Warranties, Guarantees and Contingencies Product Warranties The company provides coverage to the end-user for parts and labor on products sold under its warranty policy and for other product-related matters. The standard length of warranty is 12 years . 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) 2018 2017 2016 Accrual balance, beginning $ 47.7 $ 43.9 $ 39.3 Accrual for warranty matters 22.1 22.8 25.5 Settlements (18.3 ) (19.0 ) (20.9 ) Accrual balance, ending $ 51.5 $ 47.7 $ 43.9 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 June 2, 2018 , the company had a maximum financial exposure related to performance bonds of approximately $9.5 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 significantly affect the company's financial statements. Accordingly, no liability h as been recorded as of June 2, 2018 and June 3, 2017 . The company periodically enters into agreements in the normal course of business that may include indemnification clauses regarding patent or 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 significantly affect the company's financial statements. Accordingly, no liability has been recorded as of June 2, 2018 and June 3, 2017 . The company has entered into standby letter of credit arrangements for the purpose of protecting various insurance companies and lessors against default on insurance premium and lease payments. As of June 2, 2018 , the company had a maximum financial exposure from these standby letters of credit of approximately $8.2 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 significantly affect the company's financial statements. Accordingly, no liability has been recorded as of June 2, 2018 and June 3, 2017 . Contingencies The company is also involved in legal proceedings and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such proceedings and litigation currently pending will not materially affect the company's Consolidated Financial Statements. As of the end of fiscal 2018 , outstanding commitments for future purchase obligations approximated $93.5 million . |
Operating Segments
Operating Segments | 12 Months Ended |
Jun. 02, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Operating Segments Effective in the first quarter of fiscal 2018, the company moved the operating results of its Nemschoff subsidiary, which primarily focuses on healthcare, from its North America Furniture Solutions operating segment to its Specialty operating segment. This change was made to better leverage the skills and capabilities of the company's Specialty business teams, particularly in the areas of craft wood and upholstery manufacturing. Additionally, the company has refreshed its methodology of allocating selling, general and administrative costs to the operating segments. The company has also identified certain corporate support costs that will no longer be allocated to the operating segments and that will be tracked and reported as "Corporate Unallocated Expenses". The company made these changes in the way that it allocates and reports its costs to better reflect the utilization of functional services across its operating segments and to also more closely align to industry practice. Prior year results disclosed in the table below have been revised to reflect these changes. 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 segment includes the operations associated with the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, throughout the United States and Canada. The business associated with the company's owned contract furniture dealers is also included in the North American Furniture Solutions segment. The ELA Furniture Solutions segment includes EMEA, Latin America and Asia-Pacific. ELA includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in these geographic regions. The Specialty segment includes the operations associated with the design, manufacture, and sale of high-craft furniture products and textiles including Geiger wood products, Maharam textiles, Nemschoff and Herman Miller Collection products. The Consumer segment includes operations associated with the sale of modern design furnishings and accessories to third party retail distributors, as well as direct to consumer sales through eCommerce and Design Within Reach retail studios. The company also reports a “Corporate” category consisting primarily of unallocated expenses related to general corporate functions, including, but not limited to, certain legal, executive, corporate finance, information technology, administrative and acquisition-related costs. Management regularly reviews corporate costs and believes disclosing such information provides more visibility and transparency regarding how the chief operating decision maker reviews results of the Company. The accounting policies of the reportable operating segments are the same as those of the company. 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) 2018 2017 2016 Net Sales: North American Furniture Solutions $ 1,284.4 $ 1,276.6 $ 1,269.4 ELA Furniture Solutions 434.5 385.5 412.6 Specialty 305.4 298.0 294.2 Consumer 356.9 318.1 288.7 Corporate — — — Total $ 2,381.2 $ 2,278.2 $ 2,264.9 Depreciation and Amortization: North American Furniture Solutions $ 33.4 $ 28.3 $ 24.5 ELA Furniture Solutions 10.2 9.4 9.1 Specialty 10.5 9.4 9.4 Consumer 12.1 10.2 8.6 Corporate 0.7 1.6 1.4 Total $ 66.9 $ 58.9 $ 53.0 Operating Earnings (Losses): North American Furniture Solutions $ 166.3 $ 176.0 $ 187.6 ELA Furniture Solutions 35.5 35.9 40.2 Specialty 8.9 8.1 15.0 Consumer 13.9 4.8 8.1 Corporate (47.1 ) (34.0 ) (39.4 ) Total $ 177.5 $ 190.8 $ 211.5 Capital Expenditures: North American Furniture Solutions $ 38.9 $ 46.2 $ 56.1 ELA Furniture Solutions 11.4 8.5 15.0 Specialty 7.1 10.6 3.8 Consumer 13.2 22.0 10.2 Corporate — — — Total $ 70.6 $ 87.3 $ 85.1 Total Assets: North American Furniture Solutions $ 488.7 $ 519.3 $ 503.4 ELA Furniture Solutions 283.4 230.3 218.4 Specialty 188.7 172.2 175.6 Consumer 291.2 276.4 245.3 Corporate 227.5 108.1 92.4 Total $ 1,479.5 $ 1,306.3 $ 1,235.1 Goodwill: North American Furniture Solutions $ 133.2 $ 133.5 $ 133.5 ELA Furniture Solutions 40.0 40.1 40.9 Specialty 52.1 52.1 52.1 Consumer 78.8 78.8 78.8 Corporate — — — Total $ 304.1 $ 304.5 $ 305.3 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. 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 estimated by product category for the respective fiscal years indicated: (In millions) 2018 2017 2016 Net Sales: Systems $ 601.5 $ 639.0 $ 656.8 Seating 965.9 894.8 855.5 Freestanding and storage 465.1 428.8 456.9 Textiles 94.3 96.9 97.6 Other (1) 254.4 218.7 198.1 Total $ 2,381.2 $ 2,278.2 $ 2,264.9 (1) “Other” primarily consists of 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) 2018 2017 2016 Net Sales: United States $ 1,737.9 $ 1,690.1 $ 1,757.0 International 643.3 588.1 507.9 Total $ 2,381.2 $ 2,278.2 $ 2,264.9 Long-lived assets: United States $ 349.3 $ 328.6 $ 254.8 International 50.5 45.3 48.1 Total $ 399.8 $ 373.9 $ 302.9 The company estimates that no single dealer accounted for more than 4 percent of the company's net sales in the fiscal year ended June 2, 2018 . The company estimates that its largest single end-user customer accounted for $109.8 million , $102.3 million and $95.7 million of the company's net sales in fiscal 2018 , 2017 and 2016 , respectively. This represents approximately 5 percent , 5 percent and 4 percent of the company's net sales in fiscal 2018 , 2017 and 2016 , respectively. Approximately 5 percent of the company's employees are covered by collective bargaining agreements, most of whom are employees of its Nemschoff and Herman Miller Holdings Limited subsidiaries. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Notes) | 12 Months Ended |
Jun. 02, 2018 | |
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 June 2, 2018 , June 3, 2017 and May 28, 2016 : Year Ended (In millions) June 2, 2018 June 3, 2017 May 28, 2016 Cumulative translation adjustments at beginning of period $ (36.8 ) $ (29.6 ) $ (20.8 ) Other comprehensive income (loss) before reclassifications (net of tax of $- , $- and ($0.3)) 2.7 (7.2 ) (8.8 ) Balance at end of period (34.1 ) (36.8 ) (29.6 ) Pension and other post-retirement benefit plans at beginning of period (47.6 ) (34.9 ) (35.4 ) Other comprehensive income (loss) before reclassifications (net of tax of ($2.9), $3.7 and ($0.7)) 5.3 (14.5 ) (2.0 ) Reclassification from accumulated other comprehensive income - Selling, general and administrative 4.2 2.2 3.2 Tax benefit 0.9 (0.4 ) (0.7 ) Net reclassifications 5.1 1.8 2.5 Net current period other comprehensive income 10.4 (12.7 ) 0.5 Balance at end of period (37.2 ) (47.6 ) (34.9 ) Interest rate swap agreement at beginning of period 2.1 — — Other comprehensive income before reclassifications (net of tax of ($4.0), ($1.2) and $-) 7.5 2.1 — Reclassification from accumulated other comprehensive income - Interest expense 0.3 — — Net reclassifications 0.3 — — Net current period other comprehensive income 7.8 2.1 — Balance at end of period 9.9 2.1 — Available-for-sale Securities at beginning of period 0.1 — — Other comprehensive income before reclassifications (net of tax of $- , $- and $-) — 0.1 — Balance at end of period 0.1 0.1 — Total accumulated other comprehensive loss $ (61.3 ) $ (82.2 ) $ (64.5 ) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests (Notes) | 12 Months Ended |
Jun. 02, 2018 | |
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 within the caption 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 subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. 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 years ended June 2, 2018 and June 3, 2017 are as follows: Year Ended (In millions) June 2, 2018 June 3, 2017 Balance at beginning of period $ 24.6 $ 27.0 Purchase of redeemable noncontrolling interests (1.0 ) (1.5 ) Net income attributable to redeemable noncontrolling interests 0.6 0.2 Exercised options 0.1 — Redemption value adjustment 6.2 (1.2 ) Other adjustments — 0.1 Balance at end of period $ 30.5 $ 24.6 |
Restructuring and Impairment Ac
Restructuring and Impairment Activities | 12 Months Ended |
Jun. 02, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring and Impairment Activities 2018 Restructuring Expenses North America Contract segment During the first quarter of fiscal 2018, the company announced restructuring actions involving targeted workforce reductions primarily within the North American segment. These actions related to the company's cost savings initiatives and resulted in the recognition of restructuring expenses of $1.4 million in the first quarter of fiscal 2018. The restructuring actions were completed, and final payments made in fiscal 2018. During the second quarter of fiscal 2018, the company announced further restructuring actions involving targeted workforce reductions primarily within the North American segment. These actions related to the company's previously announced cost savings initiatives and resulted in the recognition of restructuring expenses of $0.4 million in the second quarter of fiscal 2018. The restructuring actions were completed, and final payments made in fiscal 2018. ELA segment On March 14, 2018, the company announced a facilities consolidation plan related to its ELA segment. This impacted certain office and manufacturing facilities in the United Kingdom and China. It is currently contemplated that this plan will generate approximately $4 million in annual cost reductions as part of the company's three-year cost savings initiatives. The company recognized restructuring expenses of $3.9 million of which $2.4 million related to workforce reductions and $1.5 million related to the exit and disposal activities as a result of consolidating the United Kingdom office and China manufacturing facilities. The company expects the ELA facilities consolidations to be completed by the first quarter of fiscal 2020. It is currently contemplated that this plan will incur an additional estimated $2 million of future restructuring and related special charges. The following table provides an analysis of the changes in ELA segment restructuring costs reserve for the fiscal year ended June 2, 2018 June 2, 2018 (In millions) Severance and employee related expenses Costs associated with exit and disposal activities Total Beginning Balance $ — $ — $ — Restructuring expenses 2.4 1.5 3.9 Payments (2.4 ) (1.5 ) (3.9 ) Ending Balance $ — $ — $ — 2017 Restructuring and Impairment Charges The company recognized asset impairment expense totaling $7.1 million associated with the Nemschoff trade name for the fiscal year 2017 . Forecasts developed during the fourth quarter of fiscal 2017 indicated future revenue and profitability no longer supported the value of the trade name intangible asset. The company also recognized restructuring expenses of $5.4 million related to targeted workforce reductions within the North America, ELA, Specialty and Consumer segments. The restructuring actions were deemed to be complete at June 3, 2017 and final payments made in fiscal 2018. These charges have been reflected separately as "Restructuring and impairment expenses" in the Consolidated Statements of Comprehensive Income and are included within Operating earnings for the North America, ELA, Specialty and Consumer segments within segment reporting in Note 13. The following table provides an analysis of the changes in restructuring costs reserve for the fiscal year ended June 3, 2017 : June 2, 2018 June 3, 2017 (In millions) Severance and employee related expenses Severance and employee related expenses Beginning Balance $ 2.4 $ 0.4 Restructuring expenses — 5.4 Payments (2.4 ) (3.4 ) Ending Balance $ — $ 2.4 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 02, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On June 6, 2018, Herman Miller Holdings Limited, a wholly owned subsidiary of the company, announced its intent to lead a group of buyers to acquire the outstanding equity of Maars Holding B.V. ("MAARS”), a Harderwijk, Netherlands-based worldwide leader in the design and manufacturing of interior wall solutions. The transaction is expected to close in the first quarter of fiscal 2019. As a result of the deal, the company will acquire a 48 percent ownership interest in MAARS for an estimated $6 million in cash. On June 7, 2018, Herman Miller Holdings Limited, a wholly owned subsidiary of the company entered into an agreement to acquire 33 percent of the outstanding equity of Nine United Denmark A/S, d/b/a HAY ("HAY”), a Copenhagen, Denmark-based, design leader in furniture and ancillary furnishings for residential and contract markets in Europe and Asia. The company acquired its 33 percent ownership interest in HAY for approximately $66 million in cash. The company also acquired the rights to the HAY brand in North America under a long-term license agreement for approximately $5 million in cash. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 02, 2018 | |
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 June 2, 2018 , June 3, 2017 , and May 28, 2016 . (In millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Net sales (1) $ 580.3 $ 604.6 $ 578.4 $ 618.0 Gross margin (1) 216.9 222.1 205.8 228.3 Net earnings attributable to Herman Miller, Inc. (1) 33.1 33.5 29.8 31.8 Earnings per share-basic (1) 0.55 0.56 0.50 0.53 Earnings per share-diluted 0.55 0.55 0.49 0.53 2017 Net sales $ 598.6 $ 577.5 $ 524.9 $ 577.2 Gross Margin (1) 230.0 218.0 195.5 220.9 Net earnings attributable to Herman Miller, Inc. 36.3 31.7 22.5 33.4 Earnings per share-basic (1) 0.61 0.53 0.38 0.56 Earnings per share-diluted 0.60 0.53 0.37 0.55 2016 Net sales $ 565.4 $ 580.4 $ 536.5 $ 582.6 Gross margin 216.8 224.4 207.8 225.2 Net earnings attributable to Herman Miller, Inc. (1) 33.5 34.7 27.9 40.7 Earnings per share-basic 0.56 0.58 0.46 0.68 Earnings per share-diluted 0.56 0.57 0.46 0.67 (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. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 02, 2018 | |
Schedule II Valuation and Qualifiying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | 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 June 2, 2018: Accounts receivable allowances — uncollectible accounts (1) $ 2.3 $ 0.6 $ (0.5 ) $ 2.4 Accounts receivable allowances — credit memo (2) $ 0.4 $ 0.1 $ — $ 0.5 Allowance for possible losses on notes receivable $ 0.9 $ (0.5 ) $ — $ 0.4 Valuation allowance for deferred tax asset $ 10.0 $ 0.5 $ (0.2 ) $ 10.3 Year ended June 3, 2017: Accounts receivable allowances — uncollectible accounts (1) $ 3.4 $ — $ (1.1 ) $ 2.3 Accounts receivable allowances — credit memo (2) $ 0.4 $ — $ — $ 0.4 Allowance for possible losses on notes receivable $ 0.9 $ — $ — $ 0.9 Valuation allowance for deferred tax asset $ 10.6 $ (0.6 ) $ — $ 10.0 Year ended May 28, 2016: Accounts receivable allowances — uncollectible accounts (1) $ 2.4 $ 2.3 $ (1.3 ) $ 3.4 Accounts receivable allowances — credit memo (2) $ 0.4 $ — $ — $ 0.4 Allowance for possible losses on notes receivable $ 1.0 $ (0.1 ) $ — $ 0.9 Valuation allowance for deferred tax asset $ 11.1 $ (1.5 ) $ 1.0 $ 10.6 (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 Re27
Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Jun. 02, 2018 | |
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 year ended June 2, 2018 contained 52 weeks , while the fiscal year ended June 3, 2017 contained 53 weeks . The fiscal year ended May 28, 2016 contained 52 we |
Foreign Currency Translation | Foreign Currency Translation The functional currency for most of the 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 gains and losses resulting from remeasuring foreign currency transactions into the appropriate functional currency resulted in a net gain $0.4 million for fiscal year ended June 2, 2018 , and a net loss of $0.7 million and $0.7 million for the fiscal years ended June 3, 2017 and May 28, 2016 , respectively. These amounts are included in “Other, net” 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 and time deposit investments with original maturities of less than three months. The carrying value of cash equivalents, which approximates fair value, totaled $148.8 million an d $33.6 million as of June 2, 2018 and June 3, 2017 , respectively. All 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 mutual funds. 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 The company's trade receivables are primarily due from independent dealers who, in turn, carry receivables from their customers. The company monitors and manages 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 the company. In those cases, the company may assume the credit risk. Whether from dealers or customers, the company's 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 manufacturing facilities in Michigan, whereas inventories of the company's other locations 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 net realizable value 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. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill is tested for impairment at the reporting unit level annually, or more frequently, when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. A reporting unit is defined as an operating segment or one level below an operating segment. When testing goodwill for impairment, the company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, additional quantitative testing is performed. The company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, the carrying value of goodwill is written down to fair value. To estimate the fair value of each reporting unit, the company utilizes a weighting of the income method and the market method. The income method is based on a discounted future cash flow approach that uses a number of estimates, including revenue based on assumed growth rates, estimated costs and discount rates based on the reporting unit's weighted average cost of capital. Growth rates for each reporting unit are determined based on internal estimates, historical data and external sources. The growth estimates are also used in planning for the company's long-term and short-term business planning and forecasting. We test the reasonableness of the inputs and outcomes of our discounted cash flow analysis against comparable market data. The market method is based on financial multiples of companies comparable to each reporting unit and applies a control premium. The carrying value of each reporting unit represents the assignment of various assets and liabilities, excluding corporate assets and liabilities, such as cash, investments and debt. Intangible assets with indefinite useful lives are not subject to amortization and are evaluated annually for impairment, or more frequently, when events or changes in circumstances indicate that the fair value of an intangible asset may not be recoverable. The company utilizes the relief from royalty methodology to test for impairment. The primary assumptions for the relief from royalty method include revenue forecasts, earnings forecasts, royalty rates and discount rates. The company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. The company's indefinite-lived intangible assets consist of certain trade names valued at approximately $78.1 million as of the end of fiscal 2018 and fiscal 2017 . These assets have indefinite useful lives. During fiscal 2017, the company recognized asset impairment expense totaling $7.1 million associated with the Nemschoff trade name, which was recorded within the Specialty operating segment. As of the end of fiscal 2017, the carrying value of the Nemschoff trade name was zero . These impairment expenses are recorded in the Restructuring and impairment expenses line item within the Consolidated Statements of Comprehensive Income. 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, May 28, 2016 $ 305.3 $ 85.2 $ 390.5 Foreign currency translation adjustments (0.7 ) — (0.7 ) Sale of owned dealer (0.1 ) — (0.1 ) Impairment charges — (7.1 ) (7.1 ) Balance, June 03, 2017 $ 304.5 $ 78.1 $ 382.6 Foreign currency translation adjustments (0.1 ) — (0.1 ) Sale of owned dealer (0.3 ) — (0.3 ) Balance, June 02, 2018 $ 304.1 $ 78.1 $ 382.2 Property, Equipment and Depreciation |
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. The company capitalizes certain 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 2018 , outstanding commitments for future capital purchases approximated $49.5 million . |
Long-Lived Assets - Indefinite | Other 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. |
Long-Lived Assets - Finite | Amortizable intangible assets within Other amortizable intangibles, net in the Consolidated Balance Sheets consist primarily of patents, trademarks and customer relationships. The customer relationships intangible asset is comprised of relationships with customers, specifiers, networks, dealers and distributors. Refer to the following table for the combined gross carrying value and accumulated amortization for these amortizable intangibles. June 2, 2018 (In millions) Patent and Trademarks Customer Relationships Other Total Gross carrying value $ 22.4 $ 55.3 $ 7.5 $ 85.2 Accumulated amortization 14.7 23.5 5.7 43.9 Net $ 7.7 $ 31.8 $ 1.8 $ 41.3 June 3, 2017 Patent and Trademarks Customer Relationships Other Total Gross carrying value $ 20.5 $ 55.3 $ 7.5 $ 83.3 Accumulated amortization 13.3 19.7 4.9 37.9 Net $ 7.2 $ 35.6 $ 2.6 $ 45.4 The company amortizes these assets over their remaining useful lives using the straight-line method over periods ranging from 5 years to 20 years , or on an accelerated basis, to reflect the expected realization of the economic benefits. It is estimated that the weighted-average remaining useful life of patents and trademarks is approximately 6 years and the weighted-average remaining useful life of customer relationships is 8 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 benefit and auto liability retention levels do not include an aggregate stop loss policy. The company's retention levels designated within significant insurance arrangements as of June 2, 2018 , ar e as follows: (In millions) Retention Level (per occurrence) General liability $ 1.00 Auto liability $ 1.00 Workers' compensation $ 0.75 The company accrues for its self-insurance arrangements, as well as reserves for health, prescription drugs, and dental benefit exposures based on actuarially-determined estimates, which are recorded in “Other liabilities” in the Consolidated Balance Sheets. The value of the liability as of June 2, 2018 and June 3, 2017 was $11.2 million and $10.5 million , respectively. 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. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interests Certain minority shareholders in the company's subsidiary Herman Miller Consumer Holdings, Inc. have the right, at specified times over a period of time, to require the company to acquire portions of their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity in the Consolidated Balance Sheets and are carried at the current estimated redemption amounts. The redemption amounts have been estimated based on the fair value of the subsidiary, which was determined based on a weighting of the discounted cash flow and market methods. The discounted cash flow analysis used the present value of projected cash flows and a residual value. To determine the discount rate for the discounted cash flow method, a market-based approach was used to select the discount rates used. Market multiples for comparable companies were used for the market method of valuation. The fair value of the subsidiary is sensitive to changes in projected revenues and costs, the discount rate and the forward multiples of the comparable companies. Changes in the estimated redemption amounts of the noncontrolling interests, subject to put options, are reflected at each reporting period with a corresponding adjustment to Retained earnings. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. See Note 15 - Redeemable Noncontrolling Interests for additional information. Changes in the company’s Redeemable noncontrolling interests for the years ended June 2, 2018 and June 3, 2017 are as follows: Year Ended (In millions) June 2, 2018 June 3, 2017 Balance at beginning of period $ 24.6 $ 27.0 Purchase of redeemable noncontrolling interests (1.0 ) (1.5 ) Net income attributable to redeemable noncontrolling interests 0.6 0.2 Exercised options 0.1 — Redemption value adjustment 6.2 (1.2 ) Other adjustments — 0.1 Balance at end of period $ 30.5 $ 24.6 |
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. R&D costs included in “Design and research” expense in the accompanying Consolidated Statements of Comprehensive Income are $57.1 million , $58.6 million and $62.4 million , in fiscal 2018 , 2017 , and 2016 , 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 $16.0 million , $14.5 million and $14.7 million in fiscal years 2018 , 2017 and 2016 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 and discounts. Programs such as rebates and discounts are adjustments to the selling price and are therefore characterized as a reduction to net sales. |
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. In addition to independent retailers, the company also sells product through owned retail channels, including e-commerce and Consumer retail studios. Revenue is recognized on these transactions upon shipment and transfer to the customer of both title and risk of loss. These sales may include provisions involving a right of return. The company reduces revenue for an estimate of potential future product returns related to current period product revenue. When developing the allowance for sales returns, the company considers historical returns and current economic trends. Revenue is recorded net of sales taxes as the company is a pass-through entity for collecting and remitting sales tax. |
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 items such 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 item within the Consolidated Statements of Comprehensive Income. Included in these expenses are items such as compensation expense, rental 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 Not e 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 is computed by dividing net earnings by the sum of the weighted-averag e number of shares outstanding, plus all dilutive shares that could potentially be issued. Refe r to Note 8 of the Consolidated Financial Statements for further information regarding the computation of EPS. Comprehensive Income Comprehensive income consists of Net earnings, Foreign currency translation adjust |
Comprehensive Income | Comprehensive Income Comprehensive income consists of Net earnings, Foreign currency translation adjustments, Unrealized holding gain on available-for-sale securities, Unrealized gains on interest rate swap agreement and Pension and post-retirement liability adjustments. Refer to Note 14 of the Consolid ated Financial Statements fo r further information regarding comprehensive income. |
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 classifies and discloses its fair value measurements 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 | Derivatives and Hedging The company calculates the fair value of financial instruments using quoted market prices whenever available. The company utilizes derivatives to manage exposures to foreign currency exchange rates and interest rate risk. The fair values of all derivatives are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these instruments are reported within Other expenses (income): Other, net in the Consolidated Statements of Comprehensive Income, or Accumulated Other Comprehensive Loss within the Consolidated Balance Sheets, depending on the use of the derivative and whether it qualifies for hedge accounting treatment. Gains and losses on derivatives that are designated and qualify as cash flow hedging instruments are recorded in Accumulated Other Comprehensive Loss, to the extent the hedges are effective, until the underlying transactions are recognized in the Consolidated Statements of Comprehensive Income. Derivatives not designated as hedging instruments are marked-to-market at the end of each period with the results included in Consolidated Statements of Comprehensive Income. |
Significant Accounting and Re28
Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
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, May 28, 2016 $ 305.3 $ 85.2 $ 390.5 Foreign currency translation adjustments (0.7 ) — (0.7 ) Sale of owned dealer (0.1 ) — (0.1 ) Impairment charges — (7.1 ) (7.1 ) Balance, June 03, 2017 $ 304.5 $ 78.1 $ 382.6 Foreign currency translation adjustments (0.1 ) — (0.1 ) Sale of owned dealer (0.3 ) — (0.3 ) Balance, June 02, 2018 $ 304.1 $ 78.1 $ 382.2 |
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. June 2, 2018 (In millions) Patent and Trademarks Customer Relationships Other Total Gross carrying value $ 22.4 $ 55.3 $ 7.5 $ 85.2 Accumulated amortization 14.7 23.5 5.7 43.9 Net $ 7.7 $ 31.8 $ 1.8 $ 41.3 June 3, 2017 Patent and Trademarks Customer Relationships Other Total Gross carrying value $ 20.5 $ 55.3 $ 7.5 $ 83.3 Accumulated amortization 13.3 19.7 4.9 37.9 Net $ 7.2 $ 35.6 $ 2.6 $ 45.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense on existing amortizable intangible assets as of June 2, 2018 , for each of the succeeding five fiscal years, is as follows: (In millions) 2019 $ 5.9 2020 $ 5.6 2021 $ 5.6 2022 $ 5.6 2023 $ 5.6 |
Schedule of Self Insurance Retention Levels | The company's retention levels designated within significant insurance arrangements as of June 2, 2018 , ar e as follows: (In millions) Retention Level (per occurrence) General liability $ 1.00 Auto liability $ 1.00 Workers' compensation $ 0.75 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | (In millions) June 2, 2018 June 3, 2017 Finished goods and work in process $ 124.2 $ 119.0 Raw materials 38.2 33.4 Total $ 162.4 $ 152.4 |
Investments in Nonconsolidate30
Investments in Nonconsolidated Affiliates (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment Balances [Table Text Block] | (in millions) June 2, 2018 June 3, 2017 Investments in nonconsolidated affiliates $ 16.8 $ 16.2 |
Equity Income From Nonconsolidated Affiliates [Table Text Block] | (in millions) June 2, 2018 June 3, 2017 May 28, 2016 Equity earnings from nonconsolidated affiliates $ 3.0 $ 1.6 $ 0.4 |
Equity Method Investments | The company had an ownership interest in five nonconsolidated affiliates at June 2, 2018 . Refer to the company's ownership percentages shown below: Ownership Interest June 2, 2018 June 3, 2017 Kvadrat Maharam Arabia DMCC 50.0% 50.0% Kvadrat Maharam Pty Limited 50.0% 50.0% Kvadrat Maharam Turkey JSC 50.0% 50.0% Danskina B.V. 50.0% 50.0% Naughtone Holdings Limited 50.0% 50.0% |
Schedule of Related Party Transactions [Table Text Block] | Sales to and purchases from nonconsolidated affiliates were as follows for the periods presented below: (in millions) June 2, 2018 June 3, 2017 May 28, 2016 Sales to nonconsolidated affiliates $ 4.3 $ 4.0 $ 2.5 Purchases from nonconsolidated affiliates $ 6.8 $ 4.2 $ 0.9 Balances due to or due from nonconsolidated affiliates were as follows for the periods presented below: (in millions) June 2, 2018 June 3, 2017 Receivables from nonconsolidated affiliates $ 0.9 $ 0.8 Payables to nonconsolidated affiliates $ 1.0 $ 0.5 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following obligations: (In millions) June 2, 2018 June 3, 2017 Series B Senior Notes, 6.42%, due January 3, 2018 $ — $ 149.9 Debt securities, 6.0%, due March 1, 2021 50.0 50.0 Syndicated Revolving Line of Credit, due September 2021 225.0 — Construction-Type Lease 7.0 7.0 Supplier financing program 3.8 3.2 Total debt $ 285.8 $ 210.1 Less: Current debt (10.8 ) (10.2 ) Long-term debt $ 275.0 $ 199.9 |
Schedule of Maturities of Long-term Debt | Annual maturities of long-term debt for the five fiscal years subsequent to June 2, 2018 are as shown in the table below. (In millions) 2019 $ — 2020 $ — 2021 $ 50.0 2022 $ 225.0 2023 $ — Thereafter $ — |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
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 June 2, 2018 , are as follows: (In millions) 2019 $ 45.8 2020 $ 42.8 2021 $ 40.5 2022 $ 43.1 2023 $ 32.5 Thereafter $ 123.8 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Retirement Benefits [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 2018 2017 2018 2017 (In millions) Domestic International Domestic International Change in benefit obligation: Benefit obligation at beginning of year $ 1.0 $ 113.8 $ 1.0 $ 104.4 $ 5.0 $ 5.9 Interest cost 0.1 2.7 0.1 2.7 0.1 0.2 Foreign exchange impact — 4.2 — (12.5 ) — — Actuarial (gain) loss — (12.2 ) — 23.4 (0.5 ) (0.4 ) Benefits paid (0.1 ) (2.6 ) (0.1 ) (4.2 ) (0.6 ) (0.7 ) Benefit obligation at end of year $ 1.0 $ 105.9 $ 1.0 $ 113.8 $ 4.0 $ 5.0 Change in plan assets: Fair value of plan assets at beginning of year $ — $ 80.5 $ — $ 85.0 $ — $ — Actual return on plan assets — 1.2 — 9.6 — — Foreign exchange impact — 2.8 — (10.3 ) — — Employer contributions 0.1 12.7 0.1 0.4 0.6 0.7 Benefits paid (0.1 ) (2.6 ) (0.1 ) (4.2 ) (0.6 ) (0.7 ) Fair value of plan assets at end of year $ — $ 94.6 $ — $ 80.5 $ — $ — Funded status: Under funded status at end of year $ (1.0 ) $ (11.3 ) $ (1.0 ) $ (33.3 ) $ (4.0 ) $ (5.0 ) Components of the amounts recognized in the Consolidated Balance Sheets: Current liabilities $ (0.1 ) $ — $ (0.1 ) $ — $ (0.6 ) $ (0.7 ) Non-current liabilities $ (0.9 ) $ (11.3 ) $ (0.9 ) $ (33.3 ) $ (3.4 ) $ (4.3 ) Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: Unrecognized net actuarial loss (gain) $ 0.3 $ 40.8 $ 0.3 $ 50.9 $ (1.1 ) $ (0.6 ) Accumulated other comprehensive loss $ 0.3 $ 40.8 $ 0.3 $ 50.9 $ (1.1 ) $ (0.6 ) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The following table summarizes the totals for pension plans with accumulated benefit obligations in excess of plan assets: Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (In millions) 2018 2017 Projected benefit obligation $ 106.9 $ 114.8 Accumulated benefit obligation $ 103.1 $ 111.0 Fair value of plan assets $ 94.6 $ 80.5 |
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) 2018 2017 2016 2018 2017 2016 Domestic: Interest cost $ 0.1 $ 0.1 $ — $ 0.1 $ 0.2 $ 0.2 Net periodic benefit cost $ 0.1 $ 0.1 $ — $ 0.1 $ 0.2 $ 0.2 International: Interest cost $ 2.7 $ 2.7 $ 3.8 Expected return on plan assets (5.6 ) (4.7 ) (5.4 ) Net amortization 4.2 2.2 2.8 Net periodic benefit cost $ 1.3 $ 0.2 $ 1.2 |
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) 2018 2017 2018 2017 Domestic: Net actuarial gain $ — $ — $ (0.5 ) $ (0.4 ) Total recognized in other comprehensive loss $ — $ — $ (0.5 ) $ (0.4 ) International: Net actuarial (gain) loss $ (7.7 ) $ 18.6 Net amortization (4.2 ) (2.2 ) Total recognized in other comprehensive loss $ (11.9 ) $ 16.4 |
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: 2018 2017 2016 (Percentages) Domestic International Domestic International Domestic International Discount rate 3.53 2.49 3.51 3.43 3.41 3.50 Compensation increase rate n/a 3.25 n/a 2.95 n/a 3.20 Expected return on plan assets n/a 6.10 n/a 6.10 n/a 6.10 The weighted-average used in the determination of the projected benefit obligations: Discount rate 3.99 2.87 3.53 2.49 3.51 3.43 Compensation increase rate n/a 3.10 n/a 3.25 n/a 2.95 |
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 2018 service and interest cost components $ — $ — Effect on post-retirement benefit obligation at June 2, 2018 $ 0.1 $ (0.1 ) |
Schedule of Fair Value and Allocation of Plan Assets | The target asset allocation at the end of fiscal 2018 and asset categories for the company's primary international pension plan for fiscal 2018 and 2017 are as follows: Asset Category Targeted Asset Allocation Percentage Percentage of Plan Assets at Year End 2018 2017 2018 2017 Fixed income 35 20 36 27 Common collective trusts 65 80 64 73 Total 100 100 (In millions) International Plan as of June 2, 2018 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 0.2 $ — $ 0.2 Foreign government obligations — 33.4 33.4 Common collective trusts-balanced — 61.0 61.0 Total $ 0.2 $ 94.4 $ 94.6 (In millions) International Plan as of June 3, 2017 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 0.2 $ — $ 0.2 Foreign government obligations — 21.4 21.4 Common collective trusts-balanced — 58.9 58.9 Total $ 0.2 $ 80.3 $ 80.5 |
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 June 2, 2018 . (In millions) Pension Benefits Domestic Pension Benefits International Post-Retirement Benefits 2019 $ 0.1 $ 2.0 $ 0.6 2020 $ 0.1 $ 2.0 $ 0.5 2021 $ 0.1 $ 2.1 $ 0.5 2022 $ 0.1 $ 2.5 $ 0.4 2023 $ 0.1 $ 2.4 $ 0.4 2024-2028 $ 0.3 $ 16.5 $ 1.4 |
Common Stock and Per Share In34
Common Stock and Per Share Information (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
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) 2018 2017 2016 Numerator: Numerator for both basic and diluted EPS, Net earnings attributable to Herman Miller, Inc. $ 128.1 $ 123.9 $ 136.7 Denominator: Denominator for basic EPS, weighted-average common shares outstanding 59,681,268 59,871,805 59,844,540 Potentially dilutive shares resulting from stock plans 630,037 682,784 684,729 Denominator for diluted EPS 60,311,305 60,554,589 60,529,269 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Valuation and Qualifying Accounts Disclosure | |
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) June 2, 2018 June 3, 2017 May 28, 2016 Employee stock purchase program $ 0.3 $ 0.3 $ 0.3 Stock option plans 2.6 2.0 1.9 Restricted stock units 3.9 3.6 3.2 Performance share units 0.9 2.8 6.5 Total $ 7.7 $ 8.7 $ 11.9 Tax benefit $ 2.3 $ 3.1 $ 4.3 |
Schedule of Restricted Stock Unit (RSU) Activity | The following is a summary of restricted stock unit transactions for the fiscal years indicated: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value in Millions Weighted-Average Remaining Contractual Term (Years) Outstanding at June 3, 2017 384,952 $ 28.73 $ 12.6 1.14 Granted 242,012 $ 35.28 Forfeited (19,233 ) $ 30.86 Released (126,704 ) $ 27.75 Outstanding at June 2, 2018 481,027 $ 32.20 $ 15.8 1.28 Ending vested + expected to vest 481,027 32.20 $ 15.8 1.28 |
Schedule of Fair Value of Employee Stock Options | In determining these values, the following weighted-average assumptions were used for the options granted during the fiscal years indicated: 2018 2017 2016 Risk-free interest rates (1) 1.79 % 1.01 % 1.51 % Expected term of options (2) 4.6 years 4.0 years 4.0 years Expected volatility (3) 26 % 26 % 33 % Dividend yield (4) 2.23 % 2.13 % 2.03 % 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 $ 6.39 $ 5.50 $ 6.73 (1) Represents term-matched, zero-coupon risk-free rate from the Treasury Constant Maturity yield curve, continuously compounded. (2) Represents historical settlement data, using midpoint scenario with 1-year grant date filter assumption for outstanding options. (3) The blended volatility approach was used. 90% term-matched historical volatility from daily stock prices and 10% percent weighted average implied volatility from the 90 days preceding the grant date. (4) Represents the quarterly dividend divided by the three-month average stock price as of the grant date, annualized and continuously |
Schedule of Performance-based Stock Units (PSU) Activity | The following is a summary of performance share unit transactions for the fiscal years indicated: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value in Millions Weighted-Average Remaining Contractual Term (Years) Outstanding at June 3, 2017 417,947 $ 31.18 $ 13.7 1.03 Granted 129,131 $ 31.28 Forfeited (42,339 ) $ 34.27 Released (130,179 ) $ 31.47 Outstanding at June 2, 2018 374,560 $ 30.76 $ 12.3 1.01 Ending vested + expected to vest 374,560 $ 30.76 $ 12.3 1.01 |
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 June 3, 2017 1,329,702 $ 28.36 7.26 $ 5.8 Granted at market 323,412 $ 33.75 Exercised (538,259 ) $ 27.28 Forfeited or expired (51,606 ) $ 32.83 Outstanding at June 2, 2018 1,063,249 $ 30.33 7.45 $ 2.9 Ending vested + expected to vest 1,063,249 $ 30.33 7.45 $ 2.9 Exercisable at end of period 265,519 $ 23.96 4.78 $ 2.4 |
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: 2018 2017 2016 Shares of common stock 8,828 9,982 21,988 Shares through the deferred compensation program 2,207 2,582 3,118 |
Herman Miller Consumer Stock Option Plan | Employee Stock Option | |
Valuation and Qualifying Accounts Disclosure | |
Schedule of Fair Value of Employee Stock Options | The following weighted-average assumptions were used to value the liability associated with HMCH stock options as of June 2, 2018 and June 3, 2017 : 2018 2017 Risk-free interest rates (1) 2.29 % 1.29 % Expected term of options (2) 1.1 years 2.1 years Expected volatility (3) 35 % 35 % Dividend yield not applicable not applicable Strike price $ 30.64 24.39 Per share value (4) $ 8.24 3.24 (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. (3) Amount is determined based on analysis of historical price volatility of the common stock of peer companies over a period equal to the expected term of the options. (4) Based on the Black-Scholes formula. |
Schedule of Stock Option Plan Transactions | Shares Under Option Weighted-Average Exercise Prices Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions) Outstanding at June 3, 2017 526,244 $ 24.20 2.20 $ 0.1 Granted 28,810 $ 21.08 Forfeited (10,928 ) $ 24.39 Outstanding at June 2, 2018 544,126 $ 24.04 1.20 $ 3.6 Exercisable at end of period 75,568 $ 21.83 1.20 $ 0.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of earnings before income taxes are as follows: (In millions) 2018 2017 2016 Domestic $ 121.6 $ 131.4 $ 154.9 Foreign 46.5 46.2 41.7 Total $ 168.1 $ 177.6 $ 196.6 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consists of the following: (In millions) 2018 2017 2016 Current: Domestic - Federal $ 30.2 $ 28.7 $ 36.4 Domestic - State 4.3 2.3 6.4 Foreign 10.7 11.1 6.3 45.2 42.1 49.1 Deferred: Domestic - Federal (4.1 ) 9.2 7.5 Domestic - State 0.1 2.8 0.2 Foreign 1.2 1.0 2.7 (2.8 ) 13.0 10.4 Total income tax provision $ 42.4 $ 55.1 $ 59.5 |
Effective Income Tax Rate Reconciliation | The following table represents a reconciliation of income taxes at the United States blended statutory rate of 29.1 percent for 2018 and 35.0 percent for 2017 and 2016 with the effective tax rate as follows: (In millions) 2018 2017 2016 Income taxes computed at the United States Statutory rate $ 49.0 $ 62.2 $ 68.8 Increase (decrease) in taxes resulting from: Remeasurement of U.S. deferred tax assets and liabilities due to the Tax Act (8.9 ) — — U.S. tax liability on undistributed foreign earnings due to the Tax Act 9.0 — — Foreign statutory rate differences (4.0 ) (5.7 ) (4.3 ) Manufacturing deduction under the American Jobs Creation Act of 2004 (2.7 ) (3.4 ) (4.8 ) State taxes 3.3 3.8 5.2 United Kingdom patent box deduction for research and development (1.8 ) (2.6 ) (1.7 ) Research and development credit (2.4 ) (1.4 ) (1.4 ) Sale of manufacturing facility in the United Kingdom — — (1.6 ) Other, net 0.9 2.2 (0.7 ) Income tax expense $ 42.4 $ 55.1 $ 59.5 Effective tax rate 25.2 % 31.1 % 30.3 % |
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 June 2, 2018 and June 3, 2017 , are as follows: (In millions) 2018 2017 Deferred tax assets: Compensation-related accruals $ 15.3 $ 22.7 Accrued pension and post-retirement benefit obligations 6.6 10.9 Deferred revenue 5.6 5.3 Inventory related 1.0 4.1 Reserves for uncollectible accounts and notes receivable 0.6 1.0 Other reserves and accruals 5.2 6.1 Warranty 11.9 17.0 State and local tax net operating loss carryforwards and credits 2.3 2.7 Federal net operating loss carryforward 1.7 5.0 Foreign tax net operating loss carryforwards and credits 10.0 10.0 Accrued step rent and tenant reimbursements 3.8 4.7 Other 3.9 4.2 Subtotal 67.9 93.7 Valuation allowance (10.3 ) (10.0 ) Total $ 57.6 $ 83.7 Deferred tax liabilities: Book basis in property in excess of tax basis $ (25.5 ) $ (37.4 ) Intangible assets (32.3 ) (47.3 ) Other (6.9 ) (3.2 ) Total $ (64.7 ) $ (87.9 ) |
Schedule of Unrecognized Tax Benefits | The components of the company's unrecognized tax benefits are as follows: (In millions) Balance at May 28, 2016 $ 1.7 Increases related to current year income tax positions 0.3 Increases related to prior year income tax positions 1.1 Decreases related to prior year income tax positions (0.1 ) Decreases related to lapse of applicable statute of limitations (0.1 ) Decreases related to settlements (0.1 ) Balance at June 3, 2017 2.8 Increases related to current year income tax positions 0.3 Increases related to prior year income tax positions 0.4 Decreases related to lapse of applicable statute of limitations (0.3 ) Balance at June 2, 2018 $ 3.2 |
Schedule of Unrecognized Tax Benefits, Interest, Penalties and Related Liability | Interest and penalties and the related liability, which are excluded from the table above, were as follows for the periods indicated: (In millions) June 2, 2018 June 3, 2017 May 28, 2016 Interest and penalty expense (income) $ 0.1 $ 0.2 $ (0.1 ) Liability for interest and penalties $ 1.0 $ 0.8 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
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) June 2, 2018 June 3, 2017 Carrying value $ 285.8 $ 210.1 Fair value $ 288.6 $ 223.2 |
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 June 2, 2018 and June 3, 2017 : Fair Value Measurements June 2, 2018 June 3, 2017 (In millions) Financial Assets Quoted Prices With Other Observable Inputs (Level 2) Management Estimates (Level 3) Quoted Prices With Other Observable Inputs (Level 2) Management Estimates (Level 3) Cash Equivalents $ 121.0 $ — $ — $ — Available-for-sale securities: Mutual funds - fixed income 7.7 — 7.7 — Mutual funds - equity 0.9 — 0.9 — Foreign currency forward contracts 0.4 — 0.5 — Interest rate swap agreement 15.0 — 3.3 — Deferred compensation plan 15.1 — 12.8 — Total $ 160.1 $ — $ 25.2 $ — Financial Liabilities Foreign currency forward contracts $ 0.3 $ — $ 0.6 $ — Contingent consideration — 0.5 — 0.5 Total $ 0.3 $ 0.5 $ 0.6 $ 0.5 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for liabilities measured at fair value using significant unobservable inputs (Level 3) (in millions): (In millions) Contingent Consideration June 2, 2018 June 3, 2017 Beginning balance $ 0.5 $ 2.7 Net realized losses (gains) 0.1 (0.2 ) Settlements (0.1 ) (2.0 ) Ending balance $ 0.5 $ 0.5 |
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: June 2, 2018 June 3, 2017 (In millions) Cost Unrealized Gain Unrealized Loss Market Value Cost Unrealized Gain Unrealized Loss Market Value Mutual funds - fixed income $ 7.8 $ — $ 0.1 $ 7.7 $ 7.6 $ 0.1 $ — $ 7.7 Mutual funds - equity 0.7 0.2 — 0.9 0.9 — — 0.9 Total $ 8.5 $ 0.2 $ 0.1 $ 8.6 $ 8.5 $ 0.1 $ — $ 8.6 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | effects of derivatives on the consolidated financial statements were as follows for the fiscal years ended 2018 and 2017 (amounts presented exclude any income tax effects): (In millions) Balance Sheet Location June 2, 2018 June 3, 2017 Designated derivatives: Interest rate swap Long-term assets: Other assets $ 15.0 $ 3.3 Non-designated derivatives: Foreign currency forward contracts Current assets: Other $ 0.4 $ 0.5 Foreign currency forward contracts Current liabilities: Other accrued liabilities $ 0.3 $ 0.6 Fiscal Year (In millions) Statement of Comprehensive Income Location June 2, 2018 June 3, 2017 May 28, 2016 Gain recognized on foreign currency forward contracts Other expenses (income): Other, net $ 0.4 $ (1.2 ) $ (0.7 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The gain recorded, net of income taxes, in Other comprehensive loss for the effective portion of designated derivatives was as follows for the periods presented below: Fiscal Year (In millions) June 2, 2018 June 3, 2017 May 28, 2016 Interest rate swap $ 7.5 $ 2.1 $ — |
Warranties, Guarantees, and C38
Warranties, Guarantees, and Contingencies (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the warranty reserve for the stated periods were as follows: (In millions) 2018 2017 2016 Accrual balance, beginning $ 47.7 $ 43.9 $ 39.3 Accrual for warranty matters 22.1 22.8 25.5 Settlements (18.3 ) (19.0 ) (20.9 ) Accrual balance, ending $ 51.5 $ 47.7 $ 43.9 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | (In millions) 2018 2017 2016 Net Sales: North American Furniture Solutions $ 1,284.4 $ 1,276.6 $ 1,269.4 ELA Furniture Solutions 434.5 385.5 412.6 Specialty 305.4 298.0 294.2 Consumer 356.9 318.1 288.7 Corporate — — — Total $ 2,381.2 $ 2,278.2 $ 2,264.9 Depreciation and Amortization: North American Furniture Solutions $ 33.4 $ 28.3 $ 24.5 ELA Furniture Solutions 10.2 9.4 9.1 Specialty 10.5 9.4 9.4 Consumer 12.1 10.2 8.6 Corporate 0.7 1.6 1.4 Total $ 66.9 $ 58.9 $ 53.0 Operating Earnings (Losses): North American Furniture Solutions $ 166.3 $ 176.0 $ 187.6 ELA Furniture Solutions 35.5 35.9 40.2 Specialty 8.9 8.1 15.0 Consumer 13.9 4.8 8.1 Corporate (47.1 ) (34.0 ) (39.4 ) Total $ 177.5 $ 190.8 $ 211.5 Capital Expenditures: North American Furniture Solutions $ 38.9 $ 46.2 $ 56.1 ELA Furniture Solutions 11.4 8.5 15.0 Specialty 7.1 10.6 3.8 Consumer 13.2 22.0 10.2 Corporate — — — Total $ 70.6 $ 87.3 $ 85.1 Total Assets: North American Furniture Solutions $ 488.7 $ 519.3 $ 503.4 ELA Furniture Solutions 283.4 230.3 218.4 Specialty 188.7 172.2 175.6 Consumer 291.2 276.4 245.3 Corporate 227.5 108.1 92.4 Total $ 1,479.5 $ 1,306.3 $ 1,235.1 Goodwill: North American Furniture Solutions $ 133.2 $ 133.5 $ 133.5 ELA Furniture Solutions 40.0 40.1 40.9 Specialty 52.1 52.1 52.1 Consumer 78.8 78.8 78.8 Corporate — — — Total $ 304.1 $ 304.5 $ 305.3 |
Revenue from External Customers by Products and Services | The following is a summary of net sales estimated by product category for the respective fiscal years indicated: (In millions) 2018 2017 2016 Net Sales: Systems $ 601.5 $ 639.0 $ 656.8 Seating 965.9 894.8 855.5 Freestanding and storage 465.1 428.8 456.9 Textiles 94.3 96.9 97.6 Other (1) 254.4 218.7 198.1 Total $ 2,381.2 $ 2,278.2 $ 2,264.9 (1) “Other” primarily consists of 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) 2018 2017 2016 Net Sales: United States $ 1,737.9 $ 1,690.1 $ 1,757.0 International 643.3 588.1 507.9 Total $ 2,381.2 $ 2,278.2 $ 2,264.9 |
Schedule of Long-Lived Assets by Geographic Area | Long-lived assets: United States $ 349.3 $ 328.6 $ 254.8 International 50.5 45.3 48.1 Total $ 399.8 $ 373.9 $ 302.9 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table provides an analysis of the changes in accumulated other comprehensive loss for the years ended June 2, 2018 , June 3, 2017 and May 28, 2016 : Year Ended (In millions) June 2, 2018 June 3, 2017 May 28, 2016 Cumulative translation adjustments at beginning of period $ (36.8 ) $ (29.6 ) $ (20.8 ) Other comprehensive income (loss) before reclassifications (net of tax of $- , $- and ($0.3)) 2.7 (7.2 ) (8.8 ) Balance at end of period (34.1 ) (36.8 ) (29.6 ) Pension and other post-retirement benefit plans at beginning of period (47.6 ) (34.9 ) (35.4 ) Other comprehensive income (loss) before reclassifications (net of tax of ($2.9), $3.7 and ($0.7)) 5.3 (14.5 ) (2.0 ) Reclassification from accumulated other comprehensive income - Selling, general and administrative 4.2 2.2 3.2 Tax benefit 0.9 (0.4 ) (0.7 ) Net reclassifications 5.1 1.8 2.5 Net current period other comprehensive income 10.4 (12.7 ) 0.5 Balance at end of period (37.2 ) (47.6 ) (34.9 ) Interest rate swap agreement at beginning of period 2.1 — — Other comprehensive income before reclassifications (net of tax of ($4.0), ($1.2) and $-) 7.5 2.1 — Reclassification from accumulated other comprehensive income - Interest expense 0.3 — — Net reclassifications 0.3 — — Net current period other comprehensive income 7.8 2.1 — Balance at end of period 9.9 2.1 — Available-for-sale Securities at beginning of period 0.1 — — Other comprehensive income before reclassifications (net of tax of $- , $- and $-) — 0.1 — Balance at end of period 0.1 0.1 — Total accumulated other comprehensive loss $ (61.3 ) $ (82.2 ) $ (64.5 ) |
Redeemable Noncontrolling Int41
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Redeemable Noncontrolling Interests [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interests Certain minority shareholders in the company's subsidiary Herman Miller Consumer Holdings, Inc. have the right, at specified times over a period of time, to require the company to acquire portions of their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity in the Consolidated Balance Sheets and are carried at the current estimated redemption amounts. The redemption amounts have been estimated based on the fair value of the subsidiary, which was determined based on a weighting of the discounted cash flow and market methods. The discounted cash flow analysis used the present value of projected cash flows and a residual value. To determine the discount rate for the discounted cash flow method, a market-based approach was used to select the discount rates used. Market multiples for comparable companies were used for the market method of valuation. The fair value of the subsidiary is sensitive to changes in projected revenues and costs, the discount rate and the forward multiples of the comparable companies. Changes in the estimated redemption amounts of the noncontrolling interests, subject to put options, are reflected at each reporting period with a corresponding adjustment to Retained earnings. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. See Note 15 - Redeemable Noncontrolling Interests for additional information. Changes in the company’s Redeemable noncontrolling interests for the years ended June 2, 2018 and June 3, 2017 are as follows: Year Ended (In millions) June 2, 2018 June 3, 2017 Balance at beginning of period $ 24.6 $ 27.0 Purchase of redeemable noncontrolling interests (1.0 ) (1.5 ) Net income attributable to redeemable noncontrolling interests 0.6 0.2 Exercised options 0.1 — Redemption value adjustment 6.2 (1.2 ) Other adjustments — 0.1 Balance at end of period $ 30.5 $ 24.6 |
Restructuring and Impairment 42
Restructuring and Impairment Activities Restructuring and Impairment Activities (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table provides an analysis of the changes in ELA segment restructuring costs reserve for the fiscal year ended June 2, 2018 June 2, 2018 (In millions) Severance and employee related expenses Costs associated with exit and disposal activities Total Beginning Balance $ — $ — $ — Restructuring expenses 2.4 1.5 3.9 Payments (2.4 ) (1.5 ) (3.9 ) Ending Balance $ — $ — $ — The following table provides an analysis of the changes in restructuring costs reserve for the fiscal year ended June 3, 2017 : June 2, 2018 June 3, 2017 (In millions) Severance and employee related expenses Severance and employee related expenses Beginning Balance $ 2.4 $ 0.4 Restructuring expenses — 5.4 Payments (2.4 ) (3.4 ) Ending Balance $ — $ 2.4 |
Quarterly Financial Data (Una43
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 02, 2018 | |
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 June 2, 2018 , June 3, 2017 , and May 28, 2016 . (In millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Net sales (1) $ 580.3 $ 604.6 $ 578.4 $ 618.0 Gross margin (1) 216.9 222.1 205.8 228.3 Net earnings attributable to Herman Miller, Inc. (1) 33.1 33.5 29.8 31.8 Earnings per share-basic (1) 0.55 0.56 0.50 0.53 Earnings per share-diluted 0.55 0.55 0.49 0.53 2017 Net sales $ 598.6 $ 577.5 $ 524.9 $ 577.2 Gross Margin (1) 230.0 218.0 195.5 220.9 Net earnings attributable to Herman Miller, Inc. 36.3 31.7 22.5 33.4 Earnings per share-basic (1) 0.61 0.53 0.38 0.56 Earnings per share-diluted 0.60 0.53 0.37 0.55 2016 Net sales $ 565.4 $ 580.4 $ 536.5 $ 582.6 Gross margin 216.8 224.4 207.8 225.2 Net earnings attributable to Herman Miller, Inc. (1) 33.5 34.7 27.9 40.7 Earnings per share-basic 0.56 0.58 0.46 0.68 Earnings per share-diluted 0.56 0.57 0.46 0.67 |
Significant Accounting and Re44
Significant Accounting and Reporting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangibles | $ 78.1 | $ 78.1 | $ 85.2 |
Impairment charges | 7.1 | ||
Property, Plant and Equipment [Line Items] | |||
Cash Equivalents, at Carrying Value | 148.8 | 33.6 | |
Long-term Purchase Commitment, Amount | 49.5 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 11.2 | 10.5 | |
Research and Development Expense | 57.1 | 58.6 | 62.4 |
Royalty Expense | $ 16 | 14.5 | $ 14.7 |
Machinery and Equipment [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Machinery and Equipment [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Software Development [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Patent and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 6 years | ||
Patent and Trademarks | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 5 years | ||
Patent and Trademarks | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 20 years | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 8 years | ||
Trade Names [Member] | Nemschoff | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Trade Names | 0 | ||
Impairment charges | $ 7.1 |
Significant Accounting and Re45
Significant Accounting and Reporting Policies - Schedule of Goodwill and Indefinite-lived Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance (in usd) | $ 304.5 | $ 305.3 |
Foreign currency translation adjustments | (0.1) | (0.7) |
Impairment charges | 0 | |
Ending balance (in usd) | 304.1 | 304.5 |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance (in usd) | 78.1 | 85.2 |
Foreign currency translation adjustments | 0 | 0 |
Impairment charges | (7.1) | |
Ending balance (in usd) | 78.1 | 78.1 |
Goodwill And Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance (in usd) | 382.6 | 390.5 |
Foreign currency translation adjustments | (0.1) | (0.7) |
Sale of owned dealer | (0.3) | (0.1) |
Impairment charges | (7.1) | |
Ending balance (in usd) | 382.2 | 382.6 |
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit | 0 | 0 |
Goodwill And Indefinite Lived Intangible Assets, Written off Related to Sale of Business Unit | $ (0.3) | (0.1) |
Nemschoff | Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Impairment charges | (7.1) | |
Indefinite-Lived Trade Names | $ 0 |
Significant Accounting and Re46
Significant Accounting and Reporting Policies - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Finite-LIved Intangible Assets | ||
Gross carrying value | $ 85.2 | $ 83.3 |
Accumulated amortization | 43.9 | 37.9 |
Finite-Lived Intangible Assets, Net | 41.3 | 45.4 |
Patent and Trademarks | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | 22.4 | 20.5 |
Accumulated amortization | 14.7 | 13.3 |
Finite-Lived Intangible Assets, Net | 7.7 | 7.2 |
Customer Relationships | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | 55.3 | 55.3 |
Accumulated amortization | 23.5 | 19.7 |
Finite-Lived Intangible Assets, Net | 31.8 | 35.6 |
Other | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | 7.5 | 7.5 |
Accumulated amortization | 5.7 | 4.9 |
Finite-Lived Intangible Assets, Net | $ 1.8 | $ 2.6 |
Significant Accounting and Re47
Significant Accounting and Reporting Policies - Schedule of Finite Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions | Jun. 02, 2018USD ($) |
Accounting Policies [Abstract] | |
2,019 | $ 5.9 |
2,020 | 5.6 |
2,021 | 5.6 |
2,022 | 5.6 |
2,023 | $ 5.6 |
Significant Accounting and Re48
Significant Accounting and Reporting Policies - Schedule of Self Insurance Retention Levels (Details) $ / occurence in Thousands | 12 Months Ended |
Jun. 02, 2018$ / occurence | |
Accounting Policies [Abstract] | |
General liability | 1,000 |
Auto liability | 1,000 |
Workers' compensation | 750 |
Significant Accounting and Re49
Significant Accounting and Reporting Policies - Phantom (Details) - USD ($) $ in Millions | Jun. 04, 2018 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | May 30, 2015 |
Patent and Trademarks | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Useful Life | 6 years | ||||
Patents | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Useful Life | 6 years | ||||
Trademarks | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Useful Life | 6 years | ||||
Retained Earnings | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Cumulative effect of accounting change | $ 0.1 | $ 0 | $ 0 | ||
Additional Paid-in-Capital | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Cumulative effect of accounting change | $ (0.3) | $ 0 | $ 0 | ||
Accounting Standards Update 2016-09 | Retained Earnings | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Cumulative effect of accounting change | $ 0.1 | ||||
Accounting Standards Update 2016-09 | Additional Paid-in-Capital | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Cumulative effect of accounting change | (0.3) | ||||
Other Noncurrent Assets [Member] | Accounting Standards Update 2016-09 | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
Cumulative effect of accounting change | $ 0.2 | ||||
Forecast | |||||
Schedule of Useful Lives and Amortization [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 2 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | Jul. 31, 2017 | Jan. 01, 2017 | Sep. 30, 2016 | Jun. 03, 2016 | Sep. 17, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 304.1 | $ 304.5 | $ 305.3 | |||||
Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful Life | 8 years | |||||||
Consumer | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 78.8 | 78.8 | $ 78.8 | |||||
Naughtone Holdings Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||||||
Purchase Price | $ 0.6 | $ 12.4 | ||||||
Nelson Bubble Lamp Product Line | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase Price | $ 3.6 | |||||||
Contingent consideration | 2.7 | |||||||
Nelson Bubble Lamp Product Line | Contract-Based Intangible Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2.5 | |||||||
Useful Life | 10 years | |||||||
Nelson Bubble Lamp Product Line | Customer Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 0.6 | |||||||
Nelson Bubble Lamp Product Line | Consumer | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 3.2 | |||||||
Wholly-owned contract furniture dealership | CANADA | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from Divestiture of Businesses | $ 2 | |||||||
Gain (Loss) on Disposition of Business | 1.1 | |||||||
Wholly-owned contract furniture dealership | PENNSYLVANIA | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from Divestiture of Businesses | $ 3 | |||||||
Gain (Loss) on Disposition of Business | $ (0.7) | |||||||
Accounts and Notes Receivable, Net | $ 2.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Inventory Disclosure [Abstract] | ||
LIFO Inventory Amount | $ 25.5 | $ 25.2 |
FIFO Inventory Amount | $ 175.3 | $ 164.6 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods and work in process | $ 124.2 | $ 119 |
Raw materials | 38.2 | 33.4 |
Total | $ 162.4 | $ 152.4 |
Investments in Nonconsolidate53
Investments in Nonconsolidated Affiliates (Details) $ in Millions | Jun. 02, 2018USD ($)occurence | Jun. 03, 2017USD ($) |
Schedule of Equity Method Investments | ||
Number of Equity Method Investments | occurence | 5 | |
Kvadrat Maharam Pty Limited | ||
Schedule of Equity Method Investments | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 1.9 | $ 1.8 |
Naughtone Holdings Limited | ||
Schedule of Equity Method Investments | ||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 10.2 | 9.8 |
Equity Method Investment, Temporary Difference Between Carrying Amount and Underlying Equity | 2.4 | 2.3 |
Equity Method Investment, Permanent Difference Between Carrying Amount and Underlying Equity | $ 7.8 | $ 7.5 |
Investments in Nonconsolidate54
Investments in Nonconsolidated Affiliates Investments in Nonconsolidated Affiliates - Schedule of Balance Sheet Values (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity Method Investments | $ 16.8 | $ 16.2 |
Investments in Nonconsolidate55
Investments in Nonconsolidated Affiliates Investments in Nonconsolidated Affiliates - Schedule of Equity Method Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity earnings from nonconsolidated affiliates, net of tax | $ 3 | $ 1.6 | $ 0.4 |
Investments in Nonconsolidate56
Investments in Nonconsolidated Affiliates - Schedule of Ownership Percentage (Details) | Jun. 02, 2018 | Jun. 03, 2017 |
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% |
Naughtone Holdings Limited | ||
Schedule of Equity Method Investments | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Investments in Nonconsolidate57
Investments in Nonconsolidated Affiliates Investments in Nonconsolidated Affiliates - Schedule of Sales/Purchases to/from Nonconsolidated Affiliates (Details) - Equity Method Investee [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Schedule of Equity Method Investments | |||
Revenue from Related Parties | $ 4.3 | $ 4 | $ 2.5 |
Related Party Transaction, Purchases from Related Party | $ 6.8 | $ 4.2 | $ 0.9 |
Investments in Nonconsolidate58
Investments in Nonconsolidated Affiliates Investments in Nonconsolidated Affiliates - Schedule of Receivables from/Payables to Nonconsolidated Affiliates (Details) - Equity Method Investee [Member] - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Due from Affiliates | $ 0.9 | $ 0.8 |
Due to Affiliate | $ 1 | $ 0.5 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Jan. 03, 2018 | Jun. 02, 2018 | Jun. 03, 2017 |
Line of Credit Facility | |||
Proceeds from Issuance of Debt | $ 225 | ||
Repayments of Debt | $ 150 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 0 | ||
Letters of Credit Outstanding, Amount | $ 8.2 | 8.3 | |
Interest Coverage | 400.00% | ||
Other Short-term Borrowings | $ 3.8 | 3.2 | |
Finance Leased Assets, Gross | $ 7 | 7 | |
Long-term Debt, Maturities, Repayment Terms | five | ||
Line of Credit | |||
Line of Credit Facility | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400 | ||
Line of Credit Facility, Expansion Feature, Additional Borrowing Capacity | 200 | ||
Line of Credit Facility, Current Borrowing Capacity | 225 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 166.8 | $ 391.7 | |
Minimum | |||
Line of Credit Facility | |||
Leverage Ratio | 350.00% | ||
Maximum | |||
Line of Credit Facility | |||
Leverage Ratio | 400.00% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 275 | $ 199.9 |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |
Finance Leased Assets, Gross | 7 | 7 |
Other Short-term Borrowings | 3.8 | 3.2 |
Debt, Carrying value | 285.8 | 210.1 |
Short-term Debt | 10.8 | 10.2 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 225 | 0 |
Series B Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 149.9 |
Debt Securities | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 50 | $ 50 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) $ in Millions | Jun. 02, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 0 |
2,020 | 0 |
2,021 | 50 |
2,022 | 225 |
2,023 | 0 |
Thereafter | $ 0 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Leases [Abstract] | |||
Rental expense charged to operations | $ 49.3 | $ 45.3 | $ 45.6 |
Operating Leases - Schedule of
Operating Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Jun. 02, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 45.8 |
2,020 | 42.8 |
2,021 | 40.5 |
2,022 | 43.1 |
2,023 | 32.5 |
Thereafter | $ 123.8 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 03, 2017 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 111,000,000 | $ 103,100,000 | $ 111,000,000 | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 2,900,000 | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Health Care Cost Trend Rate for Next Fiscal Year | 7.10% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Ultimate Trend Rate | 0.043 | |||
Defined Benefit Plan, Assumptions Used in Calculating Net Periodic Benefit Costs, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.50% | |||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.30% | |||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum Percentage | 6.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | 3.00% | ||
Defined Contribution Plan, Core Contribution per Employee, Percent | 1.00% | 4.00% | ||
Cost recognized | $ 24,900,000 | $ 22,800,000 | $ 21,900,000 | |
Deferred Profit Sharing [Member] | ||||
Defined Benefit Plan Disclosure | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 0 | 6,000,000 | 10,900,000 | |
Change in Assumptions for Pension Plans | ||||
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Interest Cost | 300,000 | 400,000 | ||
Domestic | ||||
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Accumulated Benefit Obligation | 1,000,000 | |||
Defined Benefit Plan, Interest Cost | (100,000) | (100,000) | 0 | |
International | ||||
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 110,000,000 | 102,200,000 | 110,000,000 | |
Defined Benefit Plan, Interest Cost | $ (2,700,000) | $ (2,700,000) | $ (3,800,000) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Funded Status and Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 114.8 | ||
Benefit obligation at end of year | 106.9 | $ 114.8 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 80.5 | ||
Fair value of plan assets at end of year | 94.6 | 80.5 | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Non-current liabilities | (15.6) | (38.5) | |
Post-Retirement Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 5 | 5.9 | |
Interest cost | 0.1 | 0.2 | $ 0.2 |
Foreign exchange impact | 0 | 0 | |
Actuarial (gain) loss | (0.5) | (0.4) | |
Benefits paid | (0.6) | (0.7) | |
Benefit obligation at end of year | 4 | 5 | 5.9 |
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 | 0.6 | 0.7 | |
Benefits paid | (0.6) | (0.7) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status: | |||
Under funded status at end of year | (4) | (5) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Current liabilities | (0.6) | (0.7) | |
Non-current liabilities | (3.4) | (4.3) | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||
Unrecognized net actuarial loss (gain) | (1.1) | (0.6) | |
Accumulated other comprehensive loss | (1.1) | (0.6) | |
Domestic | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 1 | 1 | |
Interest cost | 0.1 | 0.1 | 0 |
Foreign exchange impact | 0 | 0 | |
Actuarial (gain) loss | 0 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Benefit obligation at end of year | 1 | 1 | 1 |
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 | 0.1 | 0.1 | |
Benefits paid | (0.1) | (0.1) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status: | |||
Under funded status at end of year | (1) | (1) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Current liabilities | (0.1) | (0.1) | |
Non-current liabilities | (0.9) | (0.9) | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||
Unrecognized net actuarial loss (gain) | 0.3 | 0.3 | |
Accumulated other comprehensive loss | 0.3 | 0.3 | |
International | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 113.8 | 104.4 | |
Interest cost | 2.7 | 2.7 | 3.8 |
Foreign exchange impact | 4.2 | (12.5) | |
Actuarial (gain) loss | (12.2) | 23.4 | |
Benefits paid | (2.6) | (4.2) | |
Benefit obligation at end of year | 105.9 | 113.8 | 104.4 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 80.5 | 85 | |
Actual return on plan assets | 1.2 | 9.6 | |
Foreign exchange impact | 2.8 | (10.3) | |
Employer contributions | 12.7 | 0.4 | |
Benefits paid | (2.6) | (4.2) | |
Fair value of plan assets at end of year | 94.6 | 80.5 | $ 85 |
Funded status: | |||
Under funded status at end of year | (11.3) | (33.3) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Current liabilities | 0 | 0 | |
Non-current liabilities | (11.3) | (33.3) | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||
Unrecognized net actuarial loss (gain) | 40.8 | 50.9 | |
Accumulated other comprehensive loss | $ 40.8 | $ 50.9 |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans - Schedule of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Defined Benefit Plan, Benefit Obligation | $ 106.9 | $ 114.8 |
Defined Benefit Plan, Accumulated Benefit Obligation | 103.1 | 111 |
Defined Benefit Plan, Plan Assets, Amount | $ 94.6 | $ 80.5 |
Employee Benefit Plans - Sche67
Employee Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Post-Retirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | $ 0.1 | $ 0.2 | $ 0.2 |
Net periodic benefit cost | 0.1 | 0.2 | 0.2 |
Domestic | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | 0.1 | 0.1 | 0 |
Net periodic benefit cost | 0.1 | 0.1 | 0 |
International | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | 2.7 | 2.7 | 3.8 |
Expected return on plan assets | (5.6) | (4.7) | (5.4) |
Net amortization | 4.2 | 2.2 | 2.8 |
Net periodic benefit cost | $ 1.3 | $ 0.2 | $ 1.2 |
Employee Benefit Plans - Sche68
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Post-Retirement Benefits | ||
Defined Benefit Plan Disclosure | ||
Net actuarial gain | $ (0.5) | $ (0.4) |
Total recognized in other comprehensive loss | (0.5) | (0.4) |
Domestic | ||
Defined Benefit Plan Disclosure | ||
Net actuarial gain | 0 | 0 |
Total recognized in other comprehensive loss | 0 | 0 |
International | ||
Defined Benefit Plan Disclosure | ||
Net actuarial gain | (7.7) | 18.6 |
Net amortization | (4.2) | (2.2) |
Total recognized in other comprehensive loss | $ (11.9) | $ 16.4 |
Employee Benefit Plans - Sche69
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Domestic | |||
The weighted-average used in the determination of net periodic benefit cost: | |||
Discount rate | 3.53% | 3.51% | 3.41% |
The weighted-average used in the determination of the projected benefit obligations: | |||
Discount rate | 3.99% | 3.53% | 3.51% |
International | |||
The weighted-average used in the determination of net periodic benefit cost: | |||
Discount rate | 2.49% | 3.43% | 3.50% |
Compensation increase rate | 3.25% | 2.95% | 3.20% |
Expected return on plan assets | 6.10% | 6.10% | 6.10% |
The weighted-average used in the determination of the projected benefit obligations: | |||
Discount rate | 2.87% | 2.49% | 3.43% |
Compensation increase rate | 3.10% | 3.25% | 2.95% |
Employee Benefit Plans - Sche70
Employee Benefit Plans - Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Millions | 12 Months Ended |
Jun. 02, 2018USD ($) | |
Retirement Benefits [Abstract] | |
Effect on total fiscal 2017 service and interest cost components, 1 percent increase | $ 0 |
Effect on total fiscal 2017 service and interest cost components, 1 percent decrease | 0 |
Effect on post-retirement benefit obligation at June 3, 2017, 1 percent increase | 0.1 |
Effect on post-retirement benefit obligation at June 3, 2017, 1 percent decrease | $ 0.1 |
Employee Benefit Plans - Sche71
Employee Benefit Plans - Schedule of Fair Value and Allocation of Plan Assets (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 |
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 94.6 | $ 80.5 | |
Cash And Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0.2 | 0.2 | |
Foreign government obligations | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 33.4 | 21.4 | |
Common collective trusts | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 61 | $ 58.9 | |
International | |||
Defined Benefit Plan Disclosure | |||
Percentage of Plan Assets at Year End | 10000.00% | 10000.00% | |
Defined Benefit Plan, Plan Assets, Amount | $ 94.6 | $ 80.5 | $ 85 |
International | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0.2 | 0.2 | |
International | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 94.4 | $ 80.3 | |
International | Fixed income | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 3500000000.00% | 20.00% | |
Percentage of Plan Assets at Year End | 3600.00% | 2700.00% | |
International | Cash And Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0.2 | $ 0.2 | |
International | Cash And Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Foreign government obligations | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
International | Foreign government obligations | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 33.4 | $ 21.4 | |
International | Common collective trusts | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 6500000000.00% | 80.00% | |
Percentage of Plan Assets at Year End | 6400.00% | 7300.00% | |
International | Common collective trusts | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 | |
International | Common collective trusts | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 61 | $ 58.9 |
Employee Benefit Plans - Sche72
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Jun. 02, 2018USD ($) |
Post-Retirement Benefits | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | $ 0.6 |
2,020 | 0.5 |
2,021 | 0.5 |
2,022 | 0.4 |
2,023 | 0.4 |
2024-2028 | 1.4 |
Domestic | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2,022 | 0.1 |
2,023 | 0.1 |
2024-2028 | 0.3 |
International | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2,019 | 2 |
2,020 | 2 |
2,021 | 2.1 |
2,022 | 2.5 |
2,023 | 2.4 |
2024-2028 | $ 16.5 |
Employee Benefit Plans Employ73
Employee Benefit Plans Employee Benefit Plans - Phantom (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 103.1 | $ 111 |
Domestic | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 1 |
Common Stock and Per Share In74
Common Stock and Per Share Information (Details) - shares | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 348,089 | 764,154 | 528,676 |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 300,000,000 | ||
Stock Repurchased During Period, Shares | 1,356,156 | 765,556 | 482,040 |
Common Stock and Per Share In75
Common Stock and Per Share Information - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 02, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Jun. 03, 2017 | Mar. 04, 2017 | Dec. 03, 2016 | Sep. 03, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Numerator: | |||||||||||||||
Numerator for both basic and diluted EPS, Net earnings attributable to Herman Miller, Inc. | $ 31.8 | $ 29.8 | $ 33.5 | $ 33.1 | $ 33.4 | $ 22.5 | $ 31.7 | $ 36.3 | $ 40.7 | $ 27.9 | $ 34.7 | $ 33.5 | $ 128.1 | $ 123.9 | $ 136.7 |
Denominator: | |||||||||||||||
Denominator for basic EPS, weighted-average common shares outstanding | 59,681,268 | 59,871,805 | 59,844,540 | ||||||||||||
Potentially dilutive shares resulting from stock plans | 630,037 | 682,784 | 684,729 | ||||||||||||
Denominator for diluted EPS | 60,311,305 | 60,554,589 | 60,529,269 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares Authorized ( in shares) | 5,991,307 | ||
Stock-based compensation cost not yet recognized | $ 7,800,000 | ||
Weighted-average period over which this amount is expected to be recognized | 9 months 14 days | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 67,335 | 68,547 | 70,768 |
Cash received during fiscal 2017 from the exercise of stock options | $ 4,400,000 | ||
IRS statutory compensation ceiling | $ 275,000 | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Capital shares reserved for future issuance | 4,000,000 | ||
Reserved for purchase by plan participants (percentage) | 85.00% | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average period over which this amount is expected to be recognized | 9 months | ||
Intrinsic value of options exercised | $ 5,000,000 | $ 1,300,000 | $ 2,300,000 |
Share based compensation | $ 600,000 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average period over which this amount is expected to be recognized | 1 year 1 month 24 days | ||
Fair value of the shares that vested | $ 4,300,000 | ||
Granted (usd per share) | $ 35.28 | $ 31.83 | $ 29.03 |
Conversion ratio to common stock | 1 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted-average period over which this amount is expected to be recognized | 8 months 23 days | ||
Fair value of the shares that vested | $ 4,500,000 | ||
Granted (usd per share) | $ 31.28 | $ 29.40 | $ 30.81 |
Conversion ratio to common stock | 1 | ||
Minimum | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 1 year | ||
Minimum | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 3 years | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 3 years | ||
Minimum | Herman Miller Consumer Stock Option Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 1 year | ||
Maximum | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 3 years | ||
Expiration period (in years) | 10 years | ||
Maximum | Herman Miller Consumer Stock Option Plan | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 5 years | ||
Maximum | Executive Equalization Retirement Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Cash awards granted, percentage | 50.00% | ||
Percentage of incentive cash bonus | 100.00% | ||
Other Liabilities [Member] | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Employee-related Liabilities | $ 900,000 | ||
Director | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercisable period (in years) | 1 year | ||
Expiration period (in years) | 10 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Pre-Tax Compensation Expense and Related Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 7.7 | $ 8.7 | $ 11.9 |
Tax benefit | 2.3 | 3.1 | 4.3 |
Employee Stock Purchase Program | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 0.3 | 0.3 | 0.3 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 2.6 | 2 | 1.9 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 3.9 | 3.6 | 3.2 |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 0.9 | $ 2.8 | $ 6.5 |
Stock-Based Compensation - Sc78
Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details) - $ / shares | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.00% | 1.00% | 2.00% |
Expected term of options | 4 years 7 months 6 days | 4 years | 4 years |
Expected volatility | 0.00% | 0.00% | 0.00% |
Dividend yield | 2.00% | 2.00% | 2.00% |
Granted with exercise prices equal to the fair market value of the stock on the date of grant (usd per share) | $ 6.39 | $ 5.50 | $ 6.73 |
Stock-Based Compensation - Sc79
Stock-Based Compensation - Schedule of Stock Option Plan Transactions (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Shares Under Option | ||
Outstanding at end of period (in shares) | 1,063,249 | 1,329,702 |
Granted at market (shares) | 323,412 | |
Exercised (shares) | (538,259) | |
Forfeited or expired (shares) | (51,606) | |
Ending vested expected to vest (shares) | 1,063,249 | |
Exercisable at end of period (shares) | 265,519 | |
Weighted-Average Exercise Prices | ||
Outstanding at end of period (in usd per share) | $ 30.33 | $ 28.36 |
Granted at market (usd per share) | 33.75 | |
Exercised (usd per share) | 27.28 | |
Forfeited or expired (usd per share) | 32.83 | |
Ending vested expected to vest (usd per share) | 30.33 | |
Exercisable at end of period (usd per share) | $ 23.96 | |
Weighted-Average Remaining Contractual Term | ||
Weighted average remaining contractual term at end of period (in years) | 7 years 5 months 12 days | 7 years 3 months 4 days |
Ending vested expected to vest | 7 years 5 months 12 days | |
Exercisable at end of period | 4 years 9 months 11 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value at end of period (in millions of usd) | $ 2.9 | $ 5.8 |
Ending vested expected to vest | 2.9 | |
Exercisable at end of period | $ 2.4 |
Stock-Based Compensation - Sc80
Stock-Based Compensation - Schedule of Restricted Stock Unit (RSU) Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Weighted Average Grant-Date Fair Value | |||
Released | $ 27.75 | ||
Restricted Stock Units | |||
Share Units | |||
Beginning balance (shares) | 384,952 | ||
Granted (shares) | 242,012 | ||
Forfeited (shares) | (19,233) | ||
Released | (126,704) | ||
Ending balance (shares) | 481,027 | 384,952 | |
Ending vested expected to vest (shares) | 481,027 | ||
Weighted Average Grant-Date Fair Value | |||
Outstanding, at beginning of year (in usd per share) | $ 28.73 | ||
Granted (usd per share) | 35.28 | $ 31.83 | $ 29.03 |
Forfeited | 30.86 | ||
Outstanding, at end of year (in usd per share) | 32.20 | $ 28.73 | |
Expected to vest (in usd per share) | $ 32.20 | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value (in millions of usd) | $ 15.8 | $ 12.6 | |
Ending vested expected to vest | $ 15.8 | ||
Weighted-Average Remaining Contractual Term | |||
Weighted average remaining contractual term (in years) | 1 year 3 months 11 days | 1 year 1 month 21 days | |
Weighted average remaining contractual term, expected to vest (in years) | 1 year 3 months 11 days |
Stock-Based Compensation - Sc81
Stock-Based Compensation - Schedule of Performance-based Stock Units (PSU) Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Weighted Average Grant-Date Fair Value | |||
Released (usd per share) | $ 27.75 | ||
Performance Share Units | |||
Share Units | |||
Beginning balance (shares) | 417,947 | ||
Granted (shares) | 129,131 | ||
Forfeited (shares) | (42,339) | ||
Released (shares) | (130,179) | ||
Ending balance (shares) | 374,560 | 417,947 | |
Ending vested expected to vest (shares) | 374,560 | ||
Weighted Average Grant-Date Fair Value | |||
Outstanding, at beginning of year (in usd per share) | $ 31.18 | ||
Granted (usd per share) | 31.28 | $ 29.40 | $ 30.81 |
Forfeited (usd per share) | 34.27 | ||
Released (usd per share) | 31.47 | ||
Outstanding, at end of year (in usd per share) | 30.76 | $ 31.18 | |
Expected to vest (in usd per share) | $ 30.76 | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value (in millions of usd) | $ 12.3 | $ 13.7 | |
Ending vested expected to vest | $ 12.3 | ||
Weighted-Average Remaining Contractual Term | |||
Weighted average remaining contractual term (in years) | 1 year 4 days | 1 year 11 days | |
Weighted average remaining contractual term, expected to vest (in years) | 1 year 4 days |
Stock-Based Compensation HMCH S
Stock-Based Compensation HMCH Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details) - $ / shares | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 2.00% | 1.00% | 2.00% |
Expected term of options | 4 years 7 months 6 days | 4 years | 4 years |
Expected volatility | 0.00% | 0.00% | 0.00% |
Employee Stock Option | Herman Miller Consumer Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 2.29% | 1.29% | |
Expected term of options | 1 year 29 days | 2 years 1 month 6 days | |
Expected volatility | 35.00% | 35.00% | |
Strike Price (usd per share) | $ 30.64 | $ 24.39 | |
Per share value (usd per share) | $ 8.24 | $ 3.24 |
Stock-Based Compensation HMCH83
Stock-Based Compensation HMCH Stock-Based Compensation - Schedule of Stock Option Plan Transactions (Details) - Employee Stock Option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Shares Under Option | ||
Outstanding at end of period (in shares) | 1,063,249 | 1,329,702 |
Granted (shares) | 323,412 | |
Forfeited (shares) | (51,606) | |
Exercisable at end of period (shares) | 265,519 | |
Weighted-Average Exercise Prices | ||
Outstanding at end of period (in usd per share) | $ 30.33 | $ 28.36 |
Granted (usd per share) | 33.75 | |
Forfeited (usd per share) | 32.83 | |
Exercisable at end of period (usd per share) | $ 23.96 | |
Weighted-Average Remaining Contractual Term | ||
Weighted average remaining contractual term at end of period (in years) | 7 years 5 months 12 days | 7 years 3 months 4 days |
Aggregate Intrinsic Value | ||
Ending vested expected to vest | $ 2.9 | |
Herman Miller Consumer Stock Option Plan | ||
Shares Under Option | ||
Outstanding at end of period (in shares) | 544,126 | 526,244 |
Granted (shares) | 28,810 | |
Forfeited (shares) | (10,928) | |
Exercisable at end of period (shares) | 75,568 | |
Weighted-Average Exercise Prices | ||
Outstanding at end of period (in usd per share) | $ 24,040,000 | $ 24.20 |
Granted (usd per share) | 21.08 | |
Forfeited (usd per share) | 24.39 | |
Exercisable at end of period (usd per share) | $ 21.83 | |
Weighted-Average Remaining Contractual Term | ||
Weighted average remaining contractual term at end of period (in years) | 1 year 2 months 12 days | 2 years 2 months 12 days |
Exercisable at end of period | 1 year 2 months 12 days | |
Aggregate Intrinsic Value | ||
Ending vested expected to vest | $ 3.6 | $ 0.1 |
Exercisable at end of period | $ 0.6 |
Stock-Based Compensation - Sc84
Stock-Based Compensation - Schedule of Director Share Based Compensation (Details) - Director - shares | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares of common stock | 8,828 | 9,982 | 21,988 |
Shares through the deferred compensation program | 2,207 | 2,582 | 3,118 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Jun. 03, 2017 | Mar. 03, 2018 | Jun. 02, 2018 | Jun. 03, 2017 |
Tax Carryforward | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 29.10% | 35.00% | ||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting,Provisional Income Tax Expense (Benefit) | $ (3) | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, TransitionTax for Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit) | $ 8.7 | 9 | ||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) | 8.9 | |||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Liability | $ 9.2 | |||
State and local tax net operating loss carryforwards and credits | $ 2.7 | 2.3 | $ 2.7 | |
Deferred Tax Assets, Gross | 93.7 | 67.9 | 93.7 | |
Federal net operating loss carryforward | 5 | 1.7 | 5 | |
Foreign tax net operating loss carryforwards and credits | 10 | 10 | 10 | |
Deferred Tax Assets, Valuation Allowance | $ 10 | 10.3 | $ 10 | |
Undistributed Earnings of Foreign Subsidiaries | 181.3 | |||
State And Local Jurisdiction | ||||
Tax Carryforward | ||||
Operating Loss Carryforwards | 29.4 | |||
State and local tax net operating loss carryforwards and credits | 1.6 | |||
State credits | 0.7 | |||
Operating Loss and Tax Credit Carryforwards, Valuation Allowance | 1.1 | |||
Internal Revenue Service (IRS) | ||||
Tax Carryforward | ||||
Operating Loss Carryforwards | 8.1 | |||
Federal net operating loss carryforward | 1.7 | |||
Foreign Tax Authority | ||||
Tax Carryforward | ||||
Operating Loss Carryforwards | $ 43.8 | |||
Operating Loss Carryfoward, Expiration Period | 6 years | |||
Tax Credit Carryforward, Expiration Period | 2 years | |||
Operating Loss and Tax Credit Carryforwards, Valuation Allowance | $ 8.1 | |||
Foreign tax credits | 0.1 | |||
Foreign tax net operating loss carryforwards and credits | 10 | |||
Carryforward, Tax Deferred Expense, Reserves and Accruals, Other | 3.4 | |||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Other | 0.6 | |||
Deferred Tax Assets, Valuation Allowance | 0.6 | |||
Minimum | State And Local Jurisdiction | ||||
Tax Carryforward | ||||
Operating Loss Carryfoward, Expiration Period | 1 year | |||
Tax Credit Carryforward, Expiration Period | 2 years | |||
Minimum | Internal Revenue Service (IRS) | ||||
Tax Carryforward | ||||
Tax Credit Carryforward, Expiration Period | 11 years | |||
Maximum | State And Local Jurisdiction | ||||
Tax Carryforward | ||||
Operating Loss Carryfoward, Expiration Period | 21 years | |||
Tax Credit Carryforward, Expiration Period | 6 years | |||
Internal Revenue Service (IRS) | ||||
Tax Carryforward | ||||
Deferred Tax Assets, Gross | 2 | |||
Deferred Tax Assets, Tax Deferred Expense | 0.4 | |||
Deferred Tax Assets, Valuation Allowance | $ 0.4 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 121.6 | $ 131.4 | $ 154.9 |
Foreign | 46.5 | 46.2 | 41.7 |
Earnings before income taxes | $ 168.1 | $ 177.6 | $ 196.6 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current: Domestic - Federal | $ 30.2 | $ 28.7 | $ 36.4 |
Domestic - State | 4.3 | 2.3 | 6.4 |
Foreign | 10.7 | 11.1 | 6.3 |
Current Income Tax Expense (Benefit) | 45.2 | 42.1 | 49.1 |
Deferred: Domestic - Federal | (4.1) | 9.2 | 7.5 |
Domestic - State | 0.1 | 2.8 | 0.2 |
Foreign | 1.2 | 1 | 2.7 |
Deferred Income Tax Expense (Benefit) | (2.8) | 13 | 10.4 |
Income tax expense | $ 42.4 | $ 55.1 | $ 59.5 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at the United States Statutory rate | $ 49 | $ 62.2 | $ 68.8 |
Remeasurement of U.S. deferred tax assets and liabilities due to the Tax Act | (8.9) | 0 | 0 |
Foreign statutory rate differences | (4) | (5.7) | (4.3) |
Manufacturing deduction under the American Jobs Creation Act of 2004 | 2.7 | 3.4 | 4.8 |
State taxes | 3.3 | 3.8 | 5.2 |
Tax on undistributed foreign earnings | 9 | 0 | 0 |
United Kingdom patent box deduction for research and development | (1.8) | (2.6) | (1.7) |
Research and development credit | (2.4) | (1.4) | (1.4) |
Sale of manufacturing facility in the United Kingdom | 0 | 0 | (1.6) |
Other, net | 0.9 | 2.2 | (0.7) |
Income tax expense | $ 42.4 | $ 55.1 | $ 59.5 |
Effective tax rate | 25.20% | 31.10% | 30.30% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Deferred tax assets: | ||
Compensation-related accruals | $ 15.3 | $ 22.7 |
Accrued pension and post-retirement benefit obligations | 6.6 | 10.9 |
Deferred revenue | 5.6 | 5.3 |
Inventory related | 1 | 4.1 |
Reserves for uncollectible accounts and notes receivable | 0.6 | 1 |
Other reserves and accruals | 5.2 | 6.1 |
Warranty | 11.9 | 17 |
State and local tax net operating loss carryforwards and credits | 2.3 | 2.7 |
Federal net operating loss carryforward | 1.7 | 5 |
Foreign tax net operating loss carryforwards and credits | 10 | 10 |
Accrued step rent and tenant reimbursements | 3.8 | 4.7 |
Other | 3.9 | 4.2 |
Subtotal | 67.9 | 93.7 |
Valuation allowance | (10.3) | (10) |
Total | 57.6 | 83.7 |
Deferred tax liabilities: | ||
Book basis in property in excess of tax basis | (25.5) | (37.4) |
Intangible assets | (32.3) | (47.3) |
Other | (6.9) | (3.2) |
Total | $ (64.7) | $ (87.9) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance (in usd) | $ 3.2 | $ 2.8 | $ 1.7 |
Increases related to current year income tax positions | 0.3 | 0.3 | |
Increases related to prior year income tax positions | 0.4 | 1.1 | |
Decreases related to prior year income tax positions | 0.1 | ||
Decreases related to lapse of applicable statute of limitations | (0.3) | (0.1) | |
Decreases related to settlements | 0.1 | ||
Unrecognized tax benefits, ending balance (in usd) | $ 3.2 | $ 2.8 |
Income Taxes - Schedule of Un91
Income Taxes - Schedule of Unrecognized Ta Benefits, Interest, Penalties and Related Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Income Tax Disclosure [Abstract] | |||
Interest and penalty expense | $ (0.1) | $ (0.2) | $ 0.1 |
Liability for interest and penalties | $ 1 | $ 0.8 |
Income Taxes - Phantom (Details
Income Taxes - Phantom (Details) | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 29.10% | 35.00% |
Fair Value of Financial Instr93
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) £ in Millions | Jun. 12, 2017USD ($) | Sep. 13, 2016USD ($) | Jun. 02, 2018USD ($) | Jun. 03, 2017USD ($) | May 28, 2016USD ($) | Jun. 02, 2018GBP (£) | Jun. 03, 2017GBP (£) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Unrealized holding gain on available for sale securities | $ 0 | $ 100,000 | $ 0 | ||||
Unrealized Gain | 200,000 | 100,000 | |||||
Derivative Liability, Notional Amount | 37,300,000 | 36,100,000 | |||||
Derivative Asset, Notional Amount | £ | £ 19.9 | £ 19.4 | |||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0 | |||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax, Parent | 7,800,000 | 2,100,000 | 0 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 7,500,000 | 2,100,000 | $ 0 | ||||
Interest Rate Swap | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative Asset, Notional Amount | $ 75,000,000 | $ 150,000,000 | |||||
Debt Conversion, Converted Instrument, Rate | 238.70% | 1.949% | |||||
Foreign Exchange Forward | Not Designated as Hedging Instrument | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative, Term of Contract | 30 days | ||||||
Quoted Prices With Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Interest Rate Swap | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Interest Rate Swap Agreement | 3,300,000 | ||||||
Other Noncurrent Assets [Member] | Quoted Prices With Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Interest Rate Swap | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Interest Rate Swap Agreement | $ 15,000,000 | $ 3,300,000 |
Fair Value of Financial Instr94
Fair Value of Financial Instruments - Schedule of Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Fair Value Disclosures [Abstract] | ||
Debt, Carrying value | $ 285.8 | $ 210.1 |
Long-term debt, fair value | $ 288.6 | $ 223.2 |
Fair Value of Financial Instr95
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | $ 8.6 | $ 8.6 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 160.1 | 25.2 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices With Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | 121 | 0 |
Deferred Compensation Plan | 15.1 | 12.8 |
Contingent consideration | 0 | 0 |
Total | 0.3 | 0.6 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents | 0 | 0 |
Deferred Compensation Plan | 0 | 0 |
Total | 0 | 0 |
Contingent consideration | 0.5 | 0.5 |
Total | 0.5 | 0.5 |
Mutual funds - fixed income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 7.7 | 7.7 |
Mutual funds - fixed income | Fair Value, Measurements, Recurring [Member] | Quoted Prices With Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 7.7 | 7.7 |
Mutual funds - fixed income | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Mutual funds - equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 0.9 | 0.9 |
Mutual funds - equity | Fair Value, Measurements, Recurring [Member] | Quoted Prices With Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 0.9 | 0.9 |
Mutual funds - equity | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale marketable securities | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring [Member] | Quoted Prices With Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Swap Agreement | 3.3 | |
Interest Rate Swap | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest Rate Swap Agreement | 0 | 0 |
Foreign currency forward contracts | Fair Value, Measurements, Recurring [Member] | Quoted Prices With Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forward contracts | 0.4 | 0.5 |
Foreign currency forward contracts | 0.3 | 0.6 |
Foreign currency forward contracts | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forward contracts | 0 | 0 |
Foreign currency forward contracts | $ 0 | $ 0 |
Fair Value of Financial Instr96
Fair Value of Financial Instruments Fair Value of Financial Instruments - Schedule of Contingent Consideration Reconciliation (Details) - Contingent Consideration [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0.5 | $ 2.7 |
Net realized losses (gains) | 0.1 | (0.2) |
Settlements | (0.1) | (2) |
Ending balance | $ 0.5 | $ 0.5 |
Fair Value of Financial Assets
Fair Value of Financial Assets - Schedule of Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Gain (Loss) on Investments | ||
Cost | $ 8.5 | $ 8.5 |
Unrealized Gain | 0.2 | 0.1 |
Unrealized Loss | 0.1 | 0 |
Market Value | 8.6 | 8.6 |
Mutual funds - fixed income | ||
Gain (Loss) on Investments | ||
Cost | 7.8 | 7.6 |
Unrealized Gain | 0 | 0.1 |
Unrealized Loss | 0.1 | 0 |
Market Value | 7.7 | 7.7 |
Mutual funds - equity | ||
Gain (Loss) on Investments | ||
Cost | 0.7 | 0.9 |
Unrealized Gain | 0.2 | 0 |
Unrealized Loss | 0 | 0 |
Market Value | $ 0.9 | $ 0.9 |
Fair Value of Financial Instr98
Fair Value of Financial Instruments Fair Value of Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position (Details) - Fair Value, Measurements, Recurring [Member] - Quoted Prices With Other Observable Inputs (Level 2) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Swap Agreement | $ 3.3 | |
Interest Rate Swap | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Swap Agreement | $ 15 | 3.3 |
Forward Contracts | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0.4 | 0.5 |
Forward Contracts | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 0.3 | $ 0.6 |
Fair Value of Financial Instr99
Fair Value of Financial Instruments Fair Value of Financial Instruments - Schedule of Derivative Instruments, Gain (loss) in Statement of Financial Performance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Forward Contracts | Other Expense Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 0.4 | $ (1.2) | $ (0.7) |
Fair Value of Financial Inst100
Fair Value of Financial Instruments Fair Value of Financial Instruments - Schedule of Gain/Loss in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Interest rate swap | $ (7.5) | $ (2.1) | $ 0 |
Fair Value of Financial Inst101
Fair Value of Financial Instruments Fair Value of Financial Instruments - Phantom (Details) - USD ($) | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | $ (300,000) | $ 0 | $ 0 |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | $ 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 0 | $ 0 |
Warranties, Guarantees and Cont
Warranties, Guarantees and Contingencies (Details) $ in Millions | 12 Months Ended |
Jun. 02, 2018USD ($) | |
Warranty Length | 12 years |
Unrecorded Unconditional Purchase Obligation | $ 93.5 |
Performance Guarantee | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 9.5 |
Financial Standby Letter of Credit | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 8.2 |
Minimum | Performance Guarantee | |
Guarantor Obligations, Term | P1Y |
Maximum | Performance Guarantee | |
Guarantor Obligations, Term | P3Y |
Warranties, Guarantees, and 103
Warranties, Guarantees, and Contingencies Warranties, Guarantees, and Contingencies - Schedule of Accrued Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Standard and Extended Product Warranty Accrual | $ 47.7 | $ 43.9 | $ 39.3 |
Standard and Extended Product Warranty Accrual, Increase for Warranties Issued | 22.1 | 22.8 | 25.5 |
Standard and Extended Product Warranty Accrual, Decrease for Payments | (18.3) | (19) | (20.9) |
Standard and Extended Product Warranty Accrual | $ 51.5 | $ 47.7 | $ 43.9 |
Warranties, Guarantees, and 104
Warranties, Guarantees, and Contingencies Warranties, Guarantees, and Contingencies - Phantom (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 |
Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 0 | 0 |
Financial Standby Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Operating Segments (Details)
Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 02, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Jun. 03, 2017 | Mar. 04, 2017 | Dec. 03, 2016 | Sep. 03, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Segment Reporting Information | |||||||||||||||
Net sales | $ 618 | $ 578.4 | $ 604.6 | $ 580.3 | $ 577.2 | $ 524.9 | $ 577.5 | $ 598.6 | $ 582.6 | $ 536.5 | $ 580.4 | $ 565.4 | $ 2,381.2 | $ 2,278.2 | $ 2,264.9 |
Distributor Concentration Risk | Sales Revenue, Net | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Concentration Risk, Percentage | 4.00% | ||||||||||||||
Customer Concentration Risk | Sales Revenue, Net | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Concentration Risk, Percentage | 5.00% | 5.00% | 4.00% | ||||||||||||
Net sales | $ 110 | $ 102 | $ 96 | ||||||||||||
Unionized Employees Concentration Risk | Workforce Subject to Collective Bargaining Arrangements | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Concentration Risk, Percentage | 5.00% |
Operating Segments - Schedule o
Operating Segments - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 02, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Jun. 03, 2017 | Mar. 04, 2017 | Dec. 03, 2016 | Sep. 03, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Segment Reporting Information | |||||||||||||||
Net sales | $ 618 | $ 578.4 | $ 604.6 | $ 580.3 | $ 577.2 | $ 524.9 | $ 577.5 | $ 598.6 | $ 582.6 | $ 536.5 | $ 580.4 | $ 565.4 | $ 2,381.2 | $ 2,278.2 | $ 2,264.9 |
Depreciation and Amortization | 66.9 | 58.9 | 53 | ||||||||||||
Operating Earnings (Losses) | 177.5 | 190.8 | 211.5 | ||||||||||||
Capital Expenditures | 70.6 | 87.3 | 85.1 | ||||||||||||
Total Assets | 1,479.5 | 1,306.3 | 1,235.1 | 1,479.5 | 1,306.3 | 1,235.1 | |||||||||
Goodwill | 304.1 | 304.5 | 305.3 | 304.1 | 304.5 | 305.3 | |||||||||
North American Furniture Solutions | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales | 1,284.4 | 1,276.6 | 1,269.4 | ||||||||||||
Depreciation and Amortization | 33.4 | 28.3 | 24.5 | ||||||||||||
Operating Earnings (Losses) | 166.3 | 176 | 187.6 | ||||||||||||
Capital Expenditures | 38.9 | 46.2 | 56.1 | ||||||||||||
Total Assets | 488.7 | 519.3 | 503.4 | 488.7 | 519.3 | 503.4 | |||||||||
Goodwill | 133.2 | 133.5 | 133.5 | 133.2 | 133.5 | 133.5 | |||||||||
ELA Furniture Solutions | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales | 434.5 | 385.5 | 412.6 | ||||||||||||
Depreciation and Amortization | 10.2 | 9.4 | 9.1 | ||||||||||||
Operating Earnings (Losses) | 35.5 | 35.9 | 40.2 | ||||||||||||
Capital Expenditures | 11.4 | 8.5 | 15 | ||||||||||||
Total Assets | 283.4 | 230.3 | 218.4 | 283.4 | 230.3 | 218.4 | |||||||||
Goodwill | 40 | 40.1 | 40.9 | 40 | 40.1 | 40.9 | |||||||||
Specialty | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales | 305.4 | 298 | 294.2 | ||||||||||||
Depreciation and Amortization | 10.5 | 9.4 | 9.4 | ||||||||||||
Operating Earnings (Losses) | 8.9 | 8.1 | 15 | ||||||||||||
Capital Expenditures | 7.1 | 10.6 | 3.8 | ||||||||||||
Total Assets | 188.7 | 172.2 | 175.6 | 188.7 | 172.2 | 175.6 | |||||||||
Goodwill | 52.1 | 52.1 | 52.1 | 52.1 | 52.1 | 52.1 | |||||||||
Consumer | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales | 356.9 | 318.1 | 288.7 | ||||||||||||
Depreciation and Amortization | 12.1 | 10.2 | 8.6 | ||||||||||||
Operating Earnings (Losses) | 13.9 | 4.8 | 8.1 | ||||||||||||
Capital Expenditures | 13.2 | 22 | 10.2 | ||||||||||||
Total Assets | 291.2 | 276.4 | 245.3 | 291.2 | 276.4 | 245.3 | |||||||||
Goodwill | 78.8 | 78.8 | 78.8 | 78.8 | 78.8 | 78.8 | |||||||||
Corporate | |||||||||||||||
Segment Reporting Information | |||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||
Depreciation and Amortization | 0.7 | 1.6 | 1.4 | ||||||||||||
Operating Earnings (Losses) | (47.1) | (34) | (39.4) | ||||||||||||
Capital Expenditures | 0 | 0 | 0 | ||||||||||||
Total Assets | 227.5 | 108.1 | 92.4 | 227.5 | 108.1 | 92.4 | |||||||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Segments - Revenue fr
Operating Segments - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 02, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Jun. 03, 2017 | Mar. 04, 2017 | Dec. 03, 2016 | Sep. 03, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Revenue from External Customer | |||||||||||||||
Net sales | $ 618 | $ 578.4 | $ 604.6 | $ 580.3 | $ 577.2 | $ 524.9 | $ 577.5 | $ 598.6 | $ 582.6 | $ 536.5 | $ 580.4 | $ 565.4 | $ 2,381.2 | $ 2,278.2 | $ 2,264.9 |
Systems | |||||||||||||||
Revenue from External Customer | |||||||||||||||
Net sales | 601.5 | 639 | 656.8 | ||||||||||||
Seating | |||||||||||||||
Revenue from External Customer | |||||||||||||||
Net sales | 965.9 | 894.8 | 855.5 | ||||||||||||
Freestanding And Storage | |||||||||||||||
Revenue from External Customer | |||||||||||||||
Net sales | 465.1 | 428.8 | 456.9 | ||||||||||||
Textiles | |||||||||||||||
Revenue from External Customer | |||||||||||||||
Net sales | 94.3 | 96.9 | 97.6 | ||||||||||||
Other | |||||||||||||||
Revenue from External Customer | |||||||||||||||
Net sales | $ 254.4 | $ 218.7 | $ 198.1 |
Operating Segments - Schedul108
Operating Segments - Schedule of Revenue by Customer Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 02, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Jun. 03, 2017 | Mar. 04, 2017 | Dec. 03, 2016 | Sep. 03, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||||||
Net sales | $ 618 | $ 578.4 | $ 604.6 | $ 580.3 | $ 577.2 | $ 524.9 | $ 577.5 | $ 598.6 | $ 582.6 | $ 536.5 | $ 580.4 | $ 565.4 | $ 2,381.2 | $ 2,278.2 | $ 2,264.9 |
United States | |||||||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||||||
Net sales | 1,737.9 | 1,690.1 | 1,757 | ||||||||||||
International | |||||||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||||||
Net sales | $ 643.3 | $ 588.1 | $ 507.9 |
Operating Segments - Schedul109
Operating Segments - Schedule of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 |
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | $ 399.8 | $ 373.9 | $ 302.9 |
United States | |||
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | 349.3 | 328.6 | 254.8 |
International | |||
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | $ 50.5 | $ 45.3 | $ 48.1 |
Accumulated Other Comprehens110
Accumulated Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Cumulative translation adjustments [Roll Forward] | |||
Cumulative translation adjustments at beginning of period | $ (36,800,000) | $ (29,600,000) | $ (20,800,000) |
Other comprehensive income (loss) before reclassifications (net of tax of $- , $- and ($0.3)) | 2,700,000 | (7,200,000) | (8,800,000) |
Balance at end of period | (34,100,000) | (36,800,000) | (29,600,000) |
Pension and other post-retirement benefit plans [Roll Forward] | |||
Pension and other post-retirement benefit plans at beginning of period | (47,600,000) | (34,900,000) | (35,400,000) |
Other comprehensive income (loss) before reclassifications (net of tax of ($2.9), $3.7 and ($0.7)) | 5,300,000 | (14,500,000) | (2,000,000) |
Net reclassifications | 5,100,000 | 1,800,000 | 2,500,000 |
Net current period other comprehensive income | 10,400,000 | (12,700,000) | 500,000 |
Balance at end of period | (37,200,000) | (47,600,000) | (34,900,000) |
Interest rate swap agreement [Roll Forward] | |||
Interest rate swap agreement at beginning of period | 2,100,000 | 0 | 0 |
Other comprehensive income before reclassifications (net of tax of ($4.0), ($1.2) and $-) | 7,500,000 | 2,100,000 | 0 |
Reclassification from accumulated other comprehensive income - Interest expense | 300,000 | 0 | 0 |
Net reclassifications | 300,000 | 0 | 0 |
Net current period other comprehensive income | 7,800,000 | 2,100,000 | 0 |
Balance at end of period | 9,900,000 | 2,100,000 | 0 |
Available for sale securities [Roll Forward] | |||
Available-for-sale Securities at beginning of period | 100,000 | 0 | 0 |
Other comprehensive income before reclassifications (net of tax of $- , $- and $-) | 0 | 100,000 | 0 |
Balance at end of period | 100,000 | 100,000 | 0 |
Total accumulated other comprehensive loss | (61,300,000) | (82,200,000) | (64,500,000) |
Selling, General and Administrative Expenses | |||
Pension and other post-retirement benefit plans [Roll Forward] | |||
Reclassification from accumulated other comprehensive income | 4,200,000 | 2,200,000 | 3,200,000 |
Operating Expense | |||
Pension and other post-retirement benefit plans [Roll Forward] | |||
Reclassification from accumulated other comprehensive income | $ 900,000 | $ (400,000) | $ (700,000) |
Accumulated Other Comprehens111
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss - Phantom (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ 0 | $ (0.3) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments and Tax | (2.9) | 3.7 | (0.7) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (4) | (1.2) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $ 0 | $ 0 | $ 0 |
Redeemable Noncontrolling In112
Redeemable Noncontrolling Interests - USD ($) $ in Millions | 12 Months Ended | |
Jun. 02, 2018 | Jun. 03, 2017 | |
Redeemable Noncontrolling Interests [Roll Forward] | ||
Balance at beginning of period | $ 24.6 | $ 27 |
Purchase of redeemable noncontrolling interests | (1) | (1.5) |
Net income attributable to redeemable noncontrolling interests | 0.6 | 0.2 |
Exercised options | 0.1 | 0 |
Redemption value adjustment | 6.2 | (1.2) |
Other adjustments | 0 | 0.1 |
Balance at end of period | $ 30.5 | $ 24.6 |
Restructuring and Impairment113
Restructuring and Impairment Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 02, 2017 | Sep. 02, 2017 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | $ 5.7 | $ 12.5 | $ 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 0.4 | 0.7 | $ 0.7 | ||
Impairment charges | 7.1 | ||||
North America Furniture Solutions | Severance and employee related expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | $ 0.4 | $ 1.4 | |||
ELA Furniture Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs remaining | 2 | ||||
North America, ELA and Specialty and Consumer Segments [Member] | 2017 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring expenses | 5.4 | ||||
Nemschoff | Trade Names [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment charges | $ 7.1 | ||||
2018 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | 3.9 | ||||
2018 Restructuring Plan [Member] | Severance and employee related expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | 2.4 | ||||
2018 Restructuring Plan [Member] | Costs associated with exit and disposal activities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | 1.5 | ||||
2018 Restructuring Plan [Member] | ELA Furniture Solutions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | 3.9 | ||||
Effect on Future Earnings, Amount | 4 | ||||
2018 Restructuring Plan [Member] | ELA Furniture Solutions | Severance and employee related expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | 2.4 | ||||
2018 Restructuring Plan [Member] | ELA Furniture Solutions | Costs associated with exit and disposal activities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and impairment expenses | $ 1.5 |
Restructuring and Impairment114
Restructuring and Impairment Activities Restructuring and Impairment Activities - Schedule of Restructuring Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring expenses | $ (5.7) | $ (12.5) | $ 0 |
2018 Restructuring Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expenses | (3.9) | ||
2018 Restructuring Plan [Member] | Severance and employee related expenses [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expenses | (2.4) | ||
2018 Restructuring Plan [Member] | Costs associated with exit and disposal activities [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring expenses | (1.5) | ||
2017 Restructuring Plan [Member] | Severance and employee related expenses [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | (2.4) | (0.4) | |
Restructuring expenses | 0 | (5.4) | |
Payments | (2.4) | (3.4) | |
Ending Balance | 0 | (2.4) | $ (0.4) |
ELA Furniture Solutions | 2018 Restructuring Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring expenses | (3.9) | ||
Payments | (3.9) | ||
Ending Balance | 0 | 0 | |
ELA Furniture Solutions | 2018 Restructuring Plan [Member] | Severance and employee related expenses [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring expenses | (2.4) | ||
Payments | (2.4) | ||
Ending Balance | 0 | 0 | |
ELA Furniture Solutions | 2018 Restructuring Plan [Member] | Costs associated with exit and disposal activities [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring expenses | (1.5) | ||
Payments | (1.5) | ||
Ending Balance | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] - USD ($) $ in Millions | Jun. 07, 2018 | Jun. 06, 2018 |
MAARS [Member] | ||
Subsequent Event [Line Items] | ||
Ownership interest, transaction not yet closed | 48.00% | |
Ownership interest purchase, transaction not yet closed | $ 6 | |
HAY [Member] | ||
Subsequent Event [Line Items] | ||
Ownership interest | 33.00% | |
Consideration transferred | $ 66 | |
Trade Names [Member] | HAY [Member] | ||
Subsequent Event [Line Items] | ||
Consideration transferred | $ 5 |
Quarterly Financial Data (Un116
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 02, 2018 | Mar. 03, 2018 | Dec. 02, 2017 | Sep. 02, 2017 | Jun. 03, 2017 | Mar. 04, 2017 | Dec. 03, 2016 | Sep. 03, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net sales | $ 618 | $ 578.4 | $ 604.6 | $ 580.3 | $ 577.2 | $ 524.9 | $ 577.5 | $ 598.6 | $ 582.6 | $ 536.5 | $ 580.4 | $ 565.4 | $ 2,381.2 | $ 2,278.2 | $ 2,264.9 |
Gross margin | 228.3 | 205.8 | 222.1 | 216.9 | 220.9 | 195.5 | 218 | 230 | 225.2 | 207.8 | 224.4 | 216.8 | 873 | 864.2 | 874.2 |
Net earnings attributable to Herman Miller, Inc. (1) | $ 31.8 | $ 29.8 | $ 33.5 | $ 33.1 | $ 33.4 | $ 22.5 | $ 31.7 | $ 36.3 | $ 40.7 | $ 27.9 | $ 34.7 | $ 33.5 | $ 128.1 | $ 123.9 | $ 136.7 |
Earnings per share-basic (1) | $ 0.53 | $ 0.50 | $ 0.56 | $ 0.55 | $ 0.56 | $ 0.38 | $ 0.53 | $ 0.61 | $ 0.68 | $ 0.46 | $ 0.58 | $ 0.56 | $ 2.15 | $ 2.07 | $ 2.28 |
Earnings per share-diluted | $ 0.53 | $ 0.49 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.37 | $ 0.53 | $ 0.60 | $ 0.67 | $ 0.46 | $ 0.57 | $ 0.56 | $ 2.12 | $ 2.05 | $ 2.26 |
Schedule II Valuation and Qu117
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 02, 2018 | Jun. 03, 2017 | May 28, 2016 | |
Allowance for Doubtful Accounts, Current | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Beginning Balance | $ 2.3 | $ 3.4 | $ 2.4 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 0.6 | 0 | 2.3 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (0.5) | (1.1) | (1.3) |
Valuation Allowances and Reserves, Ending Balance | 2.4 | 2.3 | 3.4 |
Sales Returns and Allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Beginning Balance | 0.4 | 0.4 | 0.4 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 0.1 | 0 | 0 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 0 | 0 | 0 |
Valuation Allowances and Reserves, Ending Balance | 0.5 | 0.4 | 0.4 |
Allowance for Doubtful Accounts, Noncurrent | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Beginning Balance | 0.9 | 0.9 | 1 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | (0.5) | 0 | (0.1) |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 0 | 0 | 0 |
Valuation Allowances and Reserves, Ending Balance | 0.4 | 0.9 | 0.9 |
Valuation Allowance of Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Beginning Balance | 10 | 10.6 | 11.1 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 0.5 | (0.6) | (1.5) |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (0.2) | 0 | 1 |
Valuation Allowances and Reserves, Ending Balance | $ 10.3 | $ 10 | $ 10.6 |