Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 03, 2023 | Jul. 17, 2023 | Dec. 03, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 03, 2023 | ||
Current Fiscal Year End Date | --06-03 | ||
Document Transition Report | false | ||
Entity File Number | 001-15141 | ||
Entity Registrant Name | MillerKnoll, Inc. | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Tax Identification Number | 38-0837640 | ||
Entity Address, Address Line One | 855 East Main Avenue | ||
Entity Address, City or Town | Zeeland | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49464 | ||
City Area Code | 616 | ||
Local Phone Number | 654-3000 | ||
Title of 12(b) Security | Common Stock, par value $0.20 per share | ||
Trading Symbol | MLKN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.5 | ||
Entity Common Stock, Shares Outstanding | 75,701,287 | ||
Documents Incorporated by Reference | Certain portions of the Registrant's Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0000066382 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Jun. 03, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 185 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Cost of sales | 2,657.1 | 2,593.3 | 1,514 |
Gross margin | 1,430 | 1,352.7 | 951.1 |
Operating expenses: | |||
Selling, general and administrative | 1,126.4 | 1,204.2 | 643.8 |
Impairment charges | 41.2 | 0 | 0 |
Restructuring expenses | 34.4 | 0 | 2.7 |
Design and research | 105.7 | 108.7 | 72.1 |
Total operating expenses | 1,307.7 | 1,312.9 | 718.6 |
Operating earnings | 122.3 | 39.8 | 232.5 |
Interest expense | 74 | 37.8 | 13.9 |
Interest and other investment income | 2.8 | 1.6 | 2.1 |
Other (income) expense, net | (0.3) | 12.2 | (7.6) |
Earnings (loss) before income taxes and equity income | 51.4 | (8.6) | 228.3 |
Income tax expense | 4.5 | 11.1 | 48.3 |
Equity (loss) earnings from nonconsolidated affiliates, net of tax | (0.8) | 0 | 0.3 |
Net earnings (loss) | 46.1 | (19.7) | 180.3 |
Net earnings attributable to redeemable noncontrolling interests | 4 | 7.4 | 5.7 |
Net earnings (loss) attributable to MillerKnoll, Inc. | $ 42.1 | $ (27.1) | $ 174.6 |
Earnings (loss) per share - basic (in usd per share) | $ 0.56 | $ (0.37) | $ 2.96 |
Earnings (loss) per share - diluted (in usd per share) | $ 0.55 | $ (0.37) | $ 2.94 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | $ (20.1) | $ (90) | $ 52.1 |
Pension and post-retirement liability adjustments | 13.1 | 13.5 | 8.8 |
Unrealized gains on interest rate swap agreement | 19 | 34.5 | 8.1 |
Unrealized holding (losses) gains on securities | 0 | 0 | (0.1) |
Other comprehensive income (loss), net of tax | 12 | (42) | 68.9 |
Comprehensive income (loss) | 58.1 | (61.7) | 249.2 |
Comprehensive income attributable to redeemable noncontrolling interests | 4 | 4.4 | 5.7 |
Comprehensive income (loss) attributable to MillerKnoll, Inc. | $ 54.1 | $ (66.1) | $ 243.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 223.5 | $ 230.3 |
Accounts receivable, net of allowances of $6.4 and $9.7 | 334.1 | 348.9 |
Unbilled accounts receivable | 29.4 | 32 |
Inventories, net | 487.4 | 587.3 |
Prepaid expenses | 92.7 | 112.1 |
Other current assets | 9.1 | 7.3 |
Total current assets | 1,176.2 | 1,317.9 |
Property and equipment, net of accumulated depreciation of $1,034.4 and $928.2 | 536.3 | 581.5 |
Right of use assets | 415.9 | 425.8 |
Goodwill | 1,221.7 | 1,226.2 |
Indefinite-lived intangibles | 480.7 | 501 |
Other amortizable intangibles, net of accumulated amortization of $185.2 and $134.7 | 313.1 | 362.4 |
Other noncurrent assets | 130.9 | 99.2 |
Total Assets | 4,274.8 | 4,514 |
Current Liabilities: | ||
Accounts payable | 269.5 | 355.1 |
Short-term borrowings and current portion of long-term debt | 33.4 | 29.3 |
Accrued compensation and benefits | 61.7 | 128.6 |
Short-term lease liability | 77.1 | 79.9 |
Accrued warranty | 20.8 | 18.8 |
Customer deposits | 93.8 | 125.3 |
Other accrued liabilities | 146.5 | 140.4 |
Total current liabilities | 702.8 | 877.4 |
Long-term debt | 1,365.1 | 1,379.2 |
Pension and post-retirement benefits | 7.5 | 25 |
Lease liabilities | 393.7 | 398.2 |
Other liabilities | 265.5 | 300.2 |
Total Liabilities | 2,734.6 | 2,980 |
Redeemable noncontrolling interests | 107.6 | 106.9 |
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, 75,698,670 and 75,824,241 shares issued and outstanding in 2023 and 2022, respectively) | 15.1 | 15.2 |
Additional paid-in capital | 836.5 | 825.7 |
Retained earnings | 676.1 | 693.3 |
Accumulated other comprehensive loss | (95.1) | (107.1) |
Total Stockholders' Equity | 1,432.6 | 1,427.1 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity | $ 4,274.8 | $ 4,514 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 6.4 | $ 9.7 |
Property and equipment accumulated depreciation | 1,034.4 | 928.2 |
Other amortizable intangibles accumulated amortization | $ 185.2 | $ 134.7 |
Preferred stock authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Common stock par value (in usd per share) | $ 0.20 | $ 0.20 |
Common stock authorized (shares) | 240,000,000 | 240,000,000 |
Common stock issued (shares) | 75,698,670 | 75,824,241 |
Common stock outstanding (shares) | 75,698,670 | 75,824,241 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Deferred Compensation Plan |
Balance at beginning of year (shares) at May. 30, 2020 | 58,793,275 | |||||
Balance at beginning of period at May. 30, 2020 | $ 652.4 | $ 11.8 | $ 81.6 | $ 693.3 | $ (134) | $ (0.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 174.6 | 174.6 | ||||
Other comprehensive (loss) income, net of tax | 68.9 | 68.9 | ||||
Stock-based compensation expense | 9 | 9 | ||||
Exercise of stock options (shares) | 86,238 | |||||
Exercise of stock options | 2.6 | $ 0 | 2.6 | |||
Restricted and performance stock units released (shares) | 114,103 | |||||
Restricted and performance stock units released | $ 0.2 | 0.2 | ||||
Employee stock purchase plan issuances (shares) | 71,468 | 71,468 | ||||
Employee stock purchase plan issuances | $ 2.1 | 2.1 | ||||
Repurchase and retirement of common stock (shares) | (38,931) | (38,932) | ||||
Repurchase and retirement of common stock | $ (0.9) | $ 0 | (0.9) | |||
Directors fees, direct issuance (shares) | 3,013 | |||||
Directors fees, direct issuance | 0.1 | 0.1 | ||||
Deferred compensation plan | 0.1 | 0 | 0.1 | |||
Dividends declared | (33.4) | (33.4) | ||||
Redemption value adjustment | (15) | (15) | ||||
Other | (0.2) | (0.2) | ||||
Balance at end of year (shares) at May. 29, 2021 | 59,029,165 | |||||
Balance at end of period at May. 29, 2021 | 860.5 | $ 11.8 | 94.7 | 819.3 | (65.1) | (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (27.1) | (27.1) | ||||
Other comprehensive (loss) income, net of tax | (42) | (42) | ||||
Stock-based compensation expense | 31.4 | 31.4 | ||||
Restricted stock issuance (in shares) | 611,452 | |||||
Restricted stock issuance | 0 | $ 0.1 | (0.1) | |||
Exercise of stock options (shares) | 116,178 | |||||
Exercise of stock options | 3.4 | $ 0.1 | 3.3 | |||
Restricted and performance stock units released (shares) | 503,687 | |||||
Restricted and performance stock units released | $ 0 | $ 0.1 | (0.1) | |||
Employee stock purchase plan issuances (shares) | 87,562 | 87,562 | ||||
Employee stock purchase plan issuances | $ 2.8 | 2.8 | ||||
Repurchase and retirement of common stock (shares) | (390,010) | (390,979) | ||||
Repurchase and retirement of common stock | $ (16.2) | $ (0.1) | (16.1) | |||
Directors fees, direct issuance (shares) | 23,255 | |||||
Directors fees, direct issuance | 0.9 | 0.9 | ||||
Director's fees deferred restricted stock units | 0.6 | 0.6 | ||||
Deferred compensation plan | 0.2 | 0 | 0.2 | |||
Shares issued for the Acquisition of Knoll (shares) | 15,843,921 | |||||
Shares issued for the Acquisition of Knoll | 688.3 | $ 3.2 | 685.1 | |||
Pre-combination expense from Knoll rollover | 22.4 | 22.4 | ||||
NCI Adjustment | 0.5 | 0.5 | ||||
NCI Valuation | (41.6) | (41.6) | ||||
Restricted stock units dividend reinvestment | 0 | 0.3 | (0.3) | |||
Dividends declared | $ (57) | (57) | ||||
Balance at end of year (shares) at May. 28, 2022 | 75,824,241 | 75,824,241 | ||||
Balance at end of period at May. 28, 2022 | $ 1,427.1 | $ 15.2 | 825.7 | 693.3 | (107.1) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 42.1 | 42.1 | ||||
Other comprehensive (loss) income, net of tax | 12 | 12 | ||||
Stock-based compensation expense (in shares) | (39,839) | |||||
Stock-based compensation expense | 20.2 | 20.2 | ||||
Exercise of stock options (shares) | 49,482 | |||||
Exercise of stock options | 1 | 1 | ||||
Restricted and performance stock units released (shares) | 226,657 | |||||
Restricted and performance stock units released | $ 0.4 | 0.4 | ||||
Employee stock purchase plan issuances (shares) | 185,551 | 185,551 | ||||
Employee stock purchase plan issuances | $ 3.1 | 3.1 | ||||
Repurchase and retirement of common stock (shares) | (575,207) | (575,207) | ||||
Repurchase and retirement of common stock | $ (16) | $ (0.1) | (15.9) | |||
Deferred stock unit | 0.6 | 0.6 | ||||
Directors fees, direct issuance (shares) | 27,785 | |||||
Directors fees, direct issuance | 0.6 | 0.6 | ||||
NCI Valuation | (1.9) | (1.9) | ||||
Dividends declared | (57.2) | (57.2) | ||||
Other | $ 0.6 | 0.8 | (0.2) | |||
Balance at end of year (shares) at Jun. 03, 2023 | 75,698,670 | 75,698,670 | ||||
Balance at end of period at Jun. 03, 2023 | $ 1,432.6 | $ 15.1 | $ 836.5 | $ 676.1 | $ (95.1) | $ 0 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in usd per share) | $ 0.75 | $ 0.75 | $ 0.56 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Cash Flows from Operating Activities: | |||
Net earnings (loss) | $ 46.1 | $ (19.7) | $ 180.3 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation expense | 115.3 | 112 | 72 |
Amortization expense | 39.8 | 78.6 | 15.2 |
Loss (gain) on sales of property and dealers | 0 | (1) | 0 |
Deferred taxes | (45.3) | (21.7) | 7.1 |
Pension contributions | (11.7) | (5) | (5.4) |
Impairment charges | 57.9 | 15.5 | 0 |
Loss on extinguishment of debt | 0 | 13.4 | 0 |
Restructuring expenses | 34 | 0 | 2.7 |
Stock-based compensation | 20.2 | 31.4 | 9 |
Amortization of deferred financing costs | 4.6 | 4.2 | 0.4 |
(Increase) decrease in long-term assets | (4.7) | (1.6) | 1.2 |
(Decrease) increase in long-term liabilities | (1.8) | (2.1) | 16 |
Decrease (increase) in accounts receivable & unbilled accounts receivable | 15.6 | (92.4) | (14.8) |
Decrease (increase) in inventories | 81.5 | (166.4) | (10.4) |
Decrease (increase) in prepaid expenses and other | 19.6 | (39.6) | (3.9) |
(Decrease) increase in accounts payable | (82.5) | 51.5 | 43.2 |
(Decrease) increase in accrued liabilities | (124.8) | 47.2 | 15.1 |
Other, net | (0.9) | (16.2) | 4.6 |
Net Cash Provided by (Used in) Operating Activities | 162.9 | (11.9) | 332.3 |
Cash Flows from Investing Activities: | |||
Notes receivable issued | (5.1) | (1.2) | (2) |
Marketable securities purchases | 0 | 0 | (5.9) |
Marketable securities sales | 0 | 7.7 | 5.3 |
Capital expenditures | (83.3) | (94.7) | (59.8) |
Proceeds from sales of property and dealers | 0.3 | 2.8 | 14 |
Proceeds from life insurance policy | 13.5 | 0 | 0 |
Acquisitions, net of cash received | 0 | (1,088.5) | 0 |
Other, net | (1.9) | 1.5 | (11.5) |
Net Cash (Used in) Investing Activities | (76.5) | (1,172.4) | (59.9) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of debt, net of discounts | 0 | 1,007 | 0 |
Payments of deferred financing costs | 0 | (9.3) | 0 |
Repayments of long-term debt | (26.3) | (63.1) | (50) |
Proceeds from credit facility | 929.9 | 1,026.5 | 0 |
Repayments of credit facility | (916.2) | (838.5) | (265) |
Payment of make whole premium on debt | 0 | (13.4) | 0 |
Dividends paid | (57.1) | (54.5) | (34.5) |
Common stock issued | 5.5 | 7.5 | 5 |
Common stock repurchased and retired | (16) | (16.2) | (0.9) |
Distribution to noncontrolling interest | (4.9) | (6.8) | 0 |
Other, net | (1.7) | 0.7 | (2.3) |
Net Cash (Used in) Provided by Financing Activities | (86.8) | 1,039.9 | (347.7) |
Effect of exchange rate changes on cash and cash equivalents | (6.4) | (21.7) | 17.7 |
Net (Decrease) In Cash and Cash Equivalents | (6.8) | (166.1) | (57.6) |
Cash and cash equivalents, Beginning of Year | 230.3 | 396.4 | 454 |
Cash and Cash Equivalents, End of Year | 223.5 | 230.3 | 396.4 |
Other Cash Flow Information | |||
Interest paid | 70.6 | 28.8 | 12.5 |
Income taxes paid, net of cash received | $ 34.8 | $ 36.9 | $ 15.8 |
Significant Accounting and Repo
Significant Accounting and Reporting Policies | 12 Months Ended |
Jun. 03, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting and Reporting 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 MillerKnoll, Inc. and its controlled 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. 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 furniture dealers, retail studios, the Company's eCommerce platforms, direct-mail catalogs, as well as direct customer sales and independent retailers. MillerKnoll is a collective of dynamic brands that comes together to design the world we live in. A global leader in design, MillerKnoll includes Herman Miller® and Knoll®, as well as Colebrook Bosson Saunders®, DatesWeiser®, Design Within Reach®, Edelman® Leather, Geiger®, HAY®, Holly Hunt®, KnollTextiles®, Maars® Living Walls, Maharam®, Muuto®, NaughtOne®, and Spinneybeck®|FilzFelt®. Combined, MillerKnoll represents over 100 years of design research and exploration in service of humanity. The Company is united by a belief in design as a tool to create positive impact and shape a more sustainable, caring, and beautiful future for all people and the planet. Fiscal Year The Company's fiscal year ends on the Saturday closest to May 31. The fiscal year ended June 3, 2023, contained 53 weeks and the fiscal years ended May 28, 2022 and May 29, 2021 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 are 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 loss of $4.8 million, $3.3 million, and $0.8 million for the fiscal years ended June 3, 2023, May 28, 2022, and May 29, 2021, respectively. These amounts are included in Other (income) expense, 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 $40.8 million an d $43.1 million as of June 3, 2023 and May 28, 2022 , 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 previously maintained a portfolio of marketable securities primarily comprised of mutual funds. These investments were liquidated during fiscal year 2022 resulting in a cash in-flow in that year of approximately $7.7 million. Allowances for Credit Losses Allowances for credit losses related to accounts are managed at a level considered by management to be adequate to absorb an estimate of probable future losses existing at the balance sheet date. In estimating probable losses, we review accounts based on known customer exposures, historical credit experience, and specific identification of other potentially uncollectible accounts. An accounts receivable balance is considered past due when payment is not received within the stated terms. Accounts that are considered to have higher credit risk are reviewed using information available about the debtor, such as financial statements, news reports and published credit ratings. General information regarding industry trends, the economic environment is also used. We arrive at an estimated loss for specific concerns and estimate an additional amount for the remainder of trade balances based on historical trends and other factors previously referenced. 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. Subsequent recoveries, if any, are credited to bad debt expense when received. 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 net realizable value and include material, labor and overhead. 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, however inventory cannot be subsequently written back up, since the reserve establishes a new (lower) cost basis. Inventory cost is determined using the first in, first out (FIFO) method. Further information on the Company's recorded inventory balances can be found in Note 4 of the Consolidated Financial Statements. Goodwill and Indefinite-lived Intangible Assets The changes in the carrying amount of goodwill, by reporting segment, are as follows: (In millions) Americas Contract International Contract & Specialty Global Retail Total Balance at May 29, 2021 Goodwill $ 194.1 $ 103.0 $ 174.3 $ 471.4 Foreign currency translation adjustments 3.3 8.2 6.8 18.3 Accumulated impairment losses (36.7) — (88.8) (125.5) Net goodwill as of May 29, 2021 $ 160.7 $ 111.2 $ 92.3 $ 364.2 Balance at May 28, 2022 Goodwill $ 197.4 $ 111.2 $ 181.1 $ 489.7 Sale of owned dealer (0.3) — — (0.3) Acquisition of Knoll 346.0 226.8 330.7 903.5 Foreign currency translation adjustments 23.7 (33.7) (31.2) (41.2) Accumulated impairment losses (36.7) — (88.8) (125.5) Net goodwill as of May 28, 2022 $ 530.1 $ 304.3 $ 391.8 $ 1,226.2 Balance at June 3, 2023 Goodwill $ 566.8 $ 304.3 $ 480.6 $ 1,351.7 Foreign currency translation adjustments (1.7) (1.3) (1.5) (4.5) Accumulated impairment losses (36.7) — (88.8) (125.5) Net goodwill balance as of June 3, 2023 $ 528.4 $ 303.0 $ 390.3 $ 1,221.7 Other indefinite-lived assets included in the Consolidated Balance Sheets consist of the following: (In millions) Indefinite-lived Intangible Assets Balance at May 29, 2021 $ 97.6 Foreign currency translation adjustments (14.6) Acquisition of Knoll $ 418.0 Balance at May 28, 2022 $ 501.0 Foreign currency translation adjustments (0.6) Impairment charges (19.7) Balance at June 3, 2023 $ 480.7 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. 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 bypass 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. Each of the reporting units was reviewed for impairment using a qualitative assessment as of March 31, 2023. The Company elected to test each reporting unit qualitatively, as is permitted under ASU 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment. The Company concluded it to be more likely than not that their estimated fair values are greater than their respective carrying values. In connection with the segment reorganization, the Company’s reporting units have changed in composition, and goodwill was reallocated between such reporting units using a relative fair value approach. Accordingly, the Company performed interim goodwill impairment tests in the first quarter of 2023 for each reporting unit. Based on the results of the tests performed, the Company determined that the fair value of each reporting unit, both before and after the reorganization, exceeded its respective carrying amount. During the third quarter of fiscal year 2023, the Company assessed changes in circumstances that occurred during the quarter to determine if it was more likely than not that the fair values of any reporting units were below their carrying amounts. Although our annual impairment test is performed during the fourth quarter, we perform this qualitative assessment each interim reporting period. While there was no single determinate event, the consideration in totality of several factors that developed during the third quarter of fiscal year 2023 led us to conclude that it was more likely than not that the fair value of the Global Retail reporting unit was below its carrying amount. These factors included: (i) the decision to discontinue stand-alone operations of the Fully brand and (ii) the assessment of our third quarter results, for which the performance of the Global Retail reporting unit was below management's expectations. Accordingly, the Company performed an interim quantitative impairment analysis as of March 4, 2023 to determine the fair value of the Global Retail reporting unit as compared to the carrying value. The Company utilized a weighting of the income approach and the market approach to estimate the fair value of the Global Retail reporting unit. In performing the quantitative impairment test, the Company determined that the fair value of the Global Retail reporting unit exceeded the carrying amount and, as such, the reporting unit was not impaired. The Company determined that the Global Retail reporting unit exceeded its carrying value by 1% and therefore has a heightened risk of future impairments if any assumptions, estimates or market factors change in the future. The test for impairment requires the Company to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. We estimated the fair value of the Global Retail reporting unit using a discounted cash flow analysis. The discounted cash flow analysis used the present value of projected cash flows and a residual value. The Company employed a market-based approach in selecting the discount rate used in our analysis. The discount rate selected represents the market rates of return equal to what the Company believes a reasonable investor would expect to achieve on investments of similar size to the Company's reporting units. The Company believes the discount rate selected in the quantitative assessment is appropriate in that exceeds the estimated weighted average cost of capital for our business as a whole. The results of the impairment test are sensitive to changes in the discount rates and changes in the discount rate may result in future impairment. The Company evaluated the sensitivity of changes in forecasted sales, operating margin and the discount rate for the Global Retail reporting unit. Reducing the Global Retail reporting unit's forecasted sales by 5% in all years, and leaving all other assumptions static, would result in an impairment of $26.0 million. A decrease in the operating margin of 100 basis points would result in an impairment of $60.0 million. An increase in the discount rate of 100 basis points would result in an impairment of $46.0 million. The Company evaluates indefinite-lived trade name intangible assets for impairment using a qualitative assessment annually. The Company also tests for impairment using a quantitative assessment if events and circumstances indicate that it is more likely than not that the fair value of an indefinite-lived intangible asset is below its carrying amount. An impairment charge is recorded if the carrying amount of an indefinite-lived intangible asset exceeds the estimated fair value on the measurement date. During fiscal 2023, the Company determined through a qualitative assessment that the Knoll trade name carrying value was more then likely above its fair value. As a result, the Company performed a quantitative assessment to determine the fair value and as a result recognized a $19.7 million non-cash impairment charge to the indefinite-lived trade name. The carrying value of the Knoll trade name as of the measurement date was $173.0 million. The fair value of the Knoll trade name as of the measurement date is $153.3 million. In performing this quantitative assessment, we estimated the fair value using the relief-from-royalty method which requires assumptions related to: • forecasted revenue growth rate, • assumed royalty rates that could be payable if we did not own the trademark, and • a market participant discount rate based on a weighted-average cost of capital. The assumptions used reflect management’s best estimate; however, actual results could differ from our estimates. In completing our annual indefinite-lived trade name impairment test, fair value of the Knoll trade name was estimated using a discount rate of 12.0%, royalty rate of 2.00% and long-term growth rate of 2.5%. The Company’s estimates of the fair value of its Knoll indefinite-lived intangible asset is sensitive to changes in the key assumptions above as well as projected financial performance. Therefore, a sensitivity analysis was performed on certain key assumptions. Keeping all other assumptions constant, a 10% decrease in forecasted sales at June 3, 2023 would have resulted in $15.3 million of additional pre-tax impairment charges. A decrease in the royalty rate of 25 basis points would result in an additional $ 20.0 million If the estimated cash flows related to the Company's indefinite-lived intangibles were to decline in future periods, the Company may need to record an impairment charge. 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 and cloud computing arrangements. Software for internal use is included in property and equipment and is depreciated over an estimated useful life not exceeding 10 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. The following table summarizes our property as of the dates indicated: (In millions) June 3, 2023 May 28, 2022 Land and improvements $ 55.1 $ 54.4 Buildings and improvements 393.5 377.2 Machinery and equipment 1,066.6 1,027.0 Construction in progress 55.5 51.1 Accumulated depreciation (1,034.4) (928.2) Property and equipment, net $ 536.3 $ 581.5 As of the end of fiscal 2023, outstanding commitments for future capital purchases approximated $44.8 million. Other Long-Lived Assets The Company reviews the carrying value of long–lived assets for impairment when events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. If such indicators are present, the future undiscounted cash flows attributable to the asset or asset group are compared to the carrying value of the asset or asset group. 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 3, 2023 (In millions) Patent and Trademarks Customer Relationships Designs and Patterns Backlog Other Total Gross carrying value $ 60.1 $ 355.1 $ 42.0 $ 28.4 $ 12.7 $ 498.3 Accumulated amortization 30.8 95.8 9.2 28.4 9.4 173.6 Impairment 11.6 — — — — 11.6 Net $ 17.7 $ 259.3 $ 32.8 $ — $ 3.3 $ 313.1 May 28, 2022 Patent and Trademarks Customer Relationships Designs and Patterns Backlog Other Total Gross carrying value $ 57.9 $ 355.8 $ 42.0 $ 29.8 $ 11.6 $ 497.1 Accumulated amortization 24.7 66.0 5.9 29.8 8.3 134.7 Net $ 33.2 $ 289.8 $ 36.1 $ — $ 3.3 $ 362.4 The Company amortizes these assets over their remaining useful lives using the straight-line method over periods ranging from 1 year 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 the patents and trademarks is approximately 3.6 and the weighted-average remaining useful life of the customer relationships is 9.6. Estimated amortization expense on existing amortizable intangible assets as of June 3, 2023, for each of the succeeding five fiscal years, is as follows: (In millions) 2024 $ 36.6 2025 36.4 2026 35.8 2027 33.2 2028 29.0 In the third quarter of fiscal 2023 the decision was made to cease operating Fully as a stand-alone brand and sales channel and instead sell certain Fully products through other channels of the Global Retail business. As a result of this decision, the Company recorded asset Impairment charges related to Other Long-Lived Assets of $21.5 million in the third quarter of fiscal 2023. Of this amount, $11.6 million of the impairment related to the Fully trade name. The table below provides information related to the impairments recognized during the third quarter of fiscal 2023. These charges are included in "Impairment charges" and "Cost of sales" within the Consolidated Statements of Comprehensive Income. (In millions) Impairment Charge Property and equipment 3.8 Right of use asset 6.1 Trade name 11.6 Total $ 21.5 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 3, 2023 , ar e as follows: (In millions) Retention Level (per occurrence) General liability $ 1.00 Auto liability $ 1.00 Workers' compensation $ 0.75 Health benefit $ 0.50 The Company accrues for its self-insurance arrangements, as well as reserves for health, prescription drugs, and dental benefit exposures based on actuarial estimates, which are recorded in Other liabilities in the Consolidated Balance Sheets. The value of the liability as of June 3, 2023 and May 28, 2022 was $13.2 million and $14.7 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, payment lag times and changes in actual experience could cause these estimates to change. The general, auto, and workers' compensation liabilities are managed through the Company's wholly-owned insurance captive. Research, Development and Other Related Costs Research, development, pre-production and start-up costs are expensed as incurred. Research and development ("R&D") costs consist of expenditures incurred during the course of planned research and investigation aimed at discovery of new knowledge useful in developing new products or processes. R&D costs also include the 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 $67.6 million, $71.1 million and $50.8 million, in fiscal 2023, 2022, and 2021, respectively. Royalty payments made to designers of the Company's products as the products are sold are variable costs based on product sales. These expenses totaled $38.1 million , $37.6 million and $21.3 million in fiscal years 2023, 2022 and 2021 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 when performance obligations, based on the terms of customer contracts, are satisfied. This happens when control of goods and services based on the contract have been conveyed to the customer. Revenue for the sale of products is recognized at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. Revenue for services is recognized over time as the services are provided. The method of revenue recognition may vary, depending on the type of contract with the customer, as noted in the section "Disaggregated Revenue" in Note 2 of the Consolidated Financial Statements. The Company's contracts with customers include master agreements and certain other forms of contracts, which do not reach the level of a performance obligation until a purchase order is received from a customer. At the point in time that a purchase order under a contract is received by the Company, the collective group of documents represent an enforceable contract between the Company and the customer. While certain customer contracts may have a duration of greater than a year, all purchase orders are less than a year in duration. As of June 3, 2023, all unfulfilled performance obligations are expected to be fulfilled in the next twelve months. Variable consideration exists within certain contracts that the Company has with customers. When variable consideration is present in a contract with a customer, the Company estimates the amount that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. These estimates are primarily related to rebate programs which involve estimating future sales amounts and rebate percentages to use in the determination of transaction price. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Adjustments to net sales from changes in variable consideration related to performance obligations completed in previous periods are not material to the Company's financial statements. Also, the Company has no contracts with significant financing components. The Company accounts for shipping and handling activities as fulfillment activities and these costs are accrued within Cost of sales at the same time revenue is recognized. The Company does not record revenue for sales tax, value added tax or other taxes that are collected on behalf of government entities. The Company’s revenue is recorded net of these taxes as they are passed through to the relevant government entities. The Company has recognized incremental costs to obtain a contract as an expense when incurred as the amortization period is less than one year. The Company has not adjusted the amount of consideration to be received for any significant financing components as the Company’s contracts have a duration of one year or less. Leases The Company accounts for leases in accordance with ASC Topic 842, Leases, (“ASC 842”). For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company records right-of use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments. As none of the Company’s leases provide an implicit discount rate, the Company uses an estimated incremental borrowing rate at the lease commencement date in determining the present value of the lease payments. Relevant information used in determining the Company’s incremental borrowing rate includes the duration of the lease, location of the lease, and the Company’s credit risk relative to risk-free market rates. Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. Leases, and any leasehold improvements, are depreciated over the expected lease term. Additionally, certain leases include renewal or termination options, which can be exercised at the Company’s discretion. Lease terms include the non-cancelable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. The Company’s leases do not contain any residual value guarantees or material restrictive covenants. Variable lease costs associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease costs are presented as Operating expenses in the Company’s Consolidated Statements of Comprehensive Income in the same line item as the expense arising from fixed lease payments for operating leases. The Company determines if an arrangement is a lease at contract inception. Arrangements that are leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. If leased assets have leasehold improvements, the depreciable life of those leasehold improvements are limited by the expected lease term. ROU assets for operating leases are subject to the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment. The Company monitors for events or changes in circumstances that require a reassessment of a lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss. Cost of Sales The Company includes 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 its distribution network. Selling, General and Administrative The Company includes costs not directly related to the manufacturing of its 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. 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 judgment about forecasts of future taxable income. Stock-Based Compensation The Company has several stock-based compensation plans, which are described in Note 10 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. When in a loss position, basic and diluted EPS use the same weighted-average number of shares outstanding. Refe r to Note 9 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 gains on securities, unrealized gains on interest rate swap agreement and pension and post-retirement liability adjustments. Refer to Note 15 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. • Lev |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Jun. 03, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregated Revenue The Company’s revenue is comprised primarily of sales of products and installation services. Depending on the type of contract, the method of accounting and timing of revenue recognition may differ. Below, descriptions have been provided that summarize the Company’s different types of contracts and how revenue is recognized for each. • Single Performance Obligations - these contracts are transacted with customers and include only the product performance obligation. Most commonly, these contracts represent master agreements with independent third party dealers in which a purchase order represents the customer contract, point of sale transactions through the Retail segment, as well as customer purchase orders within the Americas Contract and International Contract & Specialty segments. For contracts that include a single performance obligation, the Company records revenue at the point in time when control has transferred to the customer. • Multiple Performance Obligations - these contracts are transacted with customers and include more than one performance obligation; products, which are shipped to the customer by the Company, and installation and other services, which are primarily fulfilled by independent third-party dealers. For contracts that include multiple performance obligations, the Company records revenue for the product performance obligation at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. In most cases, the Company has concluded that it is the agent for the installation services performance obligation and as such, the revenue and costs of these services are recorded net within Net sales in the Company’s Consolidated Statements of Comprehensive Income. In certain instances, entities owned by the Company, rather than independent third-party dealers, perform installation and other services. In these cases, Service revenue is generated by the Company’s entities that provide installation services, and is recognized by the Company over time as the services are provided. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on relative standalone selling prices. • Other - these contracts are comprised mainly of alliance fee arrangements, whereby the Company earns revenue for allowing other furniture sellers access to its dealer distribution channel, as well as other miscellaneous selling arrangements. Revenue from alliance contracts are recorded at the point in time in which the sale is made by other furniture sellers through the Company’s sales channel. Revenue disaggregated by contract type has been provided in the table below: Year Ended (In millions) June 3, 2023 May 28, 2022 Net sales: Single performance obligation Product revenue $ 3,816.5 $ 3,660.1 Multiple performance obligations Product revenue 254.1 265.3 Service revenue 3.4 8.6 Other 13.1 12.0 Total $ 4,087.1 $ 3,946.0 The Company internally reports and evaluates products based on the categories Workplace, Performance Seating, Lifestyle, and Other. A description of these categories is included below. The Workplace category includes products centered on creating highly functional and productive settings for both groups and individuals. This category focuses on the development of products, beyond seating, that define boundaries, support work, and enable productivity. The Performance Seating category includes products centered on seating ergonomics, productivity, and function across an evolving and diverse range of settings. This category focuses on the development of ergonomic seating solutions for specific use cases requiring more than basic utility. The Lifestyle category includes products focused on bringing spaces to life through beautiful yet functional products. This category focuses on the development of products that support a way of living, in thoughtful yet elevated ways. The products in this category help create emotive and visually appealing spaces via a portfolio that offers diversity in aesthetics, price, and performance. Revenue disaggregated by product type and segment has been provided in the table below: Year Ended (In millions) June 3, 2023 May 28, 2022 Americas Contract: Workplace $ 1,305.8 $ 1,229.2 Performance Seating 437.8 442.6 Lifestyle 257.9 221.2 Other (1) 24.6 36.1 Total Americas Contract $ 2,026.1 $ 1,929.1 International Contract & Specialty: Workplace $ 170.1 $ 143.7 Performance Seating 252.2 242.0 Lifestyle 394.5 348.6 Other (1) 200.5 194.2 Total International Contract & Specialty $ 1,017.3 $ 928.5 Global Retail: Workplace $ 83.8 $ 111.5 Performance Seating 210.7 258.2 Lifestyle 747.6 716.8 Other (1) 1.6 1.9 Total Global Retail $ 1,043.7 $ 1,088.4 Total $ 4,087.1 $ 3,946.0 (1) "Other" primarily consists of uncategorized product sales and service sales. Refer to Note 14 of the Consolidated Financial Statements for further information related to our segments. 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 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. Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Net sales: United States $ 2,918.0 $ 2,818.4 $ 1,728.9 International 1,169.1 1,127.6 736.2 Total $ 4,087.1 $ 3,946.0 $ 2,465.1 Long-lived assets: United States $ 518.7 $ 531.2 $ 311.1 International 135.6 144.9 70.6 Total $ 654.3 $ 676.1 $ 381.7 The Company approximates that no single dealer accounted for more than 4% of the Company's net sales in the fiscal year ended June 3, 2023. The Company estimates that the largest single end-user customer accounted for $174.9 million, $114.4 million and $113.0 million of the Company's net sales in fiscal 2023, 2022 and 2021, respectively. This represents approximately 4% of the Company's net sales in fiscal 2023, 3% in 2022, and 5% in 2021. The Company's ten largest customers in the aggregate accounted for approximately 14% of net sales in fiscal 2023, 11% of net sales in fiscal 2022, and 17% of net sales in fiscal 2021. Contract Assets and Contract Liabilities The Company records contract assets and contract liabilities related to its revenue generating activities. Contract assets include certain receivables from customers that are unconditional as all performance obligations with respect to the contract with the customer have been completed. These amounts represent trade receivables and they are recorded within Accounts receivable, net in the Consolidated Balance Sheets. Contract assets also include amounts that are conditional because certain performance obligations in contracts with customers are incomplete as of the balance sheet date. These contract assets generally arise due to contracts with customers that include multiple performance obligations, e.g., both the product that is shipped to the customer by the Company, as well as installation services provided by independent third-party dealers. For these contracts, the Company recognizes revenue upon satisfaction of the product performance obligation. These contract assets are included in Unbilled accounts receivable in the Consolidated Balance Sheets until all performance obligations in the contract with the customer have been satisfied. Contract liabilities represent deposits made by customers before the satisfaction of performance obligation and recognition of revenue. Upon completion of the performance obligation(s) that the Company has with the customer based on the terms of the contract, the liability for the customer deposit is relieved and revenue is recognized. These customer deposits are included within Customer deposits in the Consolidated Balance Sheets. During the twelve months ended June 3, 2023, the Company recognized net sales of $117.7 million rel ate |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Jun. 03, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Knoll, Inc. On July 19, 2021, the Company completed its acquisition of Knoll, a leader in the design, manufacture, marketing, and sale of high-end furniture products and accessories for workplace and residential markets. The Company has included the financial results of Knoll in the consolidated financial statements from the date of acquisition. The transaction costs associated with the acquisition, which included financial advisory, legal, proxy filing, regulatory and financing fees, were approximately $30.0 million for the twelve months ended May 28, 2022 and were recorded in general and administrative expenses. Under the terms of the Agreement and Plan of Merger, each issued and outstanding share of Knoll common stock (excluding shares exercising dissenters rights, shares owned by Knoll as treasury stock, shares owned by the deal parties or their subsidiaries, or shares subject to Knoll restricted stock awards) was converted into a right to receive 0.32 shares of Herman Miller, Inc. (now MillerKnoll, Inc.) common stock and $11.00 in cash, without interest. The acquisition date fair value of the consideration transferred for Knoll was approximately $1,887.3 million, which consisted of the following (in millions, except share amounts): Knoll Shares Herman Miller, Inc (now MillerKnoll, Inc.) Shares Exchanged Fair Value Cash Consideration: Shares of Knoll Common Stock issued and outstanding at July 19, 2021 49,444,825 $ 543.9 Knoll equivalent shares for outstanding option awards, outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest at July 19, 2021 184,857 1.4 Total number of Knoll shares for cash consideration 49,629,682 Shares of Knoll Preferred Stock issued and outstanding at July 19, 2021 169,165 254.4 Consideration for payment to settle Knoll's outstanding debt 376.9 Share Consideration: Shares of Knoll Common Stock issued and outstanding at July 19, 2021 49,444,825 Knoll equivalent shares for outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest at July 19, 2021 74,857 Total number of Knoll shares for share consideration 49,519,682 15,843,921 688.3 Replacement Share-Based Awards: Outstanding awards of Knoll Restricted Stock and Performance units relating to Knoll Common Stock at July 19, 2021 22.4 Total acquisition date fair value of consideration transferred $ 1,887.3 The aggregate cash paid in connection with the Knoll acquisition was $1,176.6 million. MillerKnoll funded the acquisition through cash on-hand and debt proceeds, as described in Note 6. Short-Term Borrowings and Long-Term Debt. Outstanding unvested restricted stock awards, performance stock awards, performance stock units, and restricted stock units with a preliminary estimated fair value of $53.4 million automatically converted into Company awards. Of the total fair value, $22.4 million was allocated to purchase consideration and $31.0 million was allocated to future services and will be expensed over the remaining service periods on a straight-line basis. Per the terms of the converted awards any qualifying termination within the twelve months subsequent to the acquisition will result in accelerated vesting and related recognition of expense. The transaction was accounted for as a business combination which requires that assets and liabilities assumed be recognized at their fair value as of the acquisition date. The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition: (In millions) Fair Value Cash $ 88.0 Accounts receivable 82.3 Inventories 219.9 Other current assets 29.2 Property and equipment 296.5 Right-of-use assets 202.7 Intangible assets 756.6 Goodwill 903.5 Other noncurrent assets 25.1 Total assets acquired $ 2,603.8 Accounts payable 144.0 Other current liabilities 153.1 Lease liabilities 177.8 Other liabilities 241.6 Total liabilities assumed 716.5 Net Assets Acquired $ 1,887.3 The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. Goodwill is attributed to the assembled workforce of Knoll and anticipated operational synergies. Goodwill related to the acquisition was allocated to each of the reporting segments with a total value as of the opening balance sheet date of $903.5 million. Goodwill arising from the acquisition is not expected to be deductible for tax reporting purposes. Certain measurement period adjustments were made during the twelve months ended May 28, 2022 to the preliminary fair values resulting in a net decrease to goodwill of $22.4 million primarily related to adjustments to the value of certain liabilities acquired and the fair value of intangible assets acquired. The allocation of purchase price was completed in the fourth quarter of fiscal year 2022. The following table summarizes the acquired identified intangible assets, valuation method employed, useful lives and fair value, as determined by the Company as of the acquisition date: (In millions) Valuation Method Useful Life (years) Fair Value Backlog Multi-Period Excess Earnings Less than 1 Year $ 27.6 Trade name - indefinite lived Relief from Royalty Indefinite 418.0 Trade name - amortizing Relief from Royalty 5-10 Years 14.0 Designs Relief from Royalty 9-15 years 40.0 Customer Relationships Multi-Period Excess Earnings 2-15 years 257.0 Total $ 756.6 Contract Furniture Dealership Divestiture On January 31, 2022, the Company completed the sale of a wholly-owned contract furniture dealership in Toronto, Canada for cash consideration of $2.8 million. A pre-tax gain of $2.0 million was recognized as a result of the sale within Selling, general and administrative within the Consolidated Statements of Comprehensive Income. |
Inventories
Inventories | 12 Months Ended |
Jun. 03, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In millions) June 3, 2023 May 28, 2022 Finished goods and work in process $ 357.2 $ 441.6 Raw materials 130.2 145.7 Total $ 487.4 $ 587.3 |
Investments in Nonconsolidated
Investments in Nonconsolidated Affiliates | 12 Months Ended |
Jun. 03, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Nonconsolidated Affiliates | 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 noncurrent assets in the Consolidated Balance Sheets and the equity earnings are included in Equity (loss) 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 3, 2023 May 28, 2022 Investments in nonconsolidated affiliates $ 8.5 $ 9.9 (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Equity (loss) earnings from nonconsolidated affiliates, net of tax $ (0.8) $ — $ 0.3 The Company had an ownership interest in two nonconsolidated affiliates at June 3, 2023. Refer to the Company's ownership percentages shown below: Ownership Interest June 3, 2023 May 28, 2022 Kvadrat Maharam Pty Limited 50.0% 50.0% Global Holdings Netherlands B.V. (Maars) 48.2% 48.2% Kvadrat Maharam The Kvadrat Maharam Pty Limited nonconsolidated affiliate is a distribution entity engaged in selling decorative upholstery, drapery and wall covering products. Maars On August 31, 2018, the Company acquired 48.2% of the outstanding equity of Global Holdings Netherlands B.V., which owns 100% of Maars Holding B.V. ("Maars”), a Harderwijk, Netherlands-based worldwide leader in the design and manufacturing of interior wall solutions. The Company acquired its 48.2% ownership interest in Maars for approximately $6.1 million in cash. The entity is accounted for using the equity method of accounting as the Company has significant influence, but not control, over the entity. As of the August 31, 2018 acquisition date, the Company's investment value in Maars was $3.1 million more than the Company's proportionate share of the underlying net assets. This amount represented the difference between the price that the Company paid to acquire 48.2% of the outstanding equity and the carrying value of the net assets of Maars. Of this difference, $2.7 million is being amortized over the remaining useful lives of the assets, while $0.4 million is considered a permanent difference. In the fourth quarter of fiscal 2023, the Company determined the fair value was less than the carrying value and concluded the impairment was other-than-temporary and recorded an impairment charge of approximately $1.0 million within Other income and expense in the Consolidated Statements of Comprehensive Income. At June 3, 2023, the Company's investment value in Maars is $1.0 million more than the Company's proportionate share of the underlying net assets, the total of which is being amortized over the remaining useful lives of the assets. Transactions with Nonconsolidated Affiliates Sales to and purchases from nonconsolidated affiliates were as follows for the periods presented below: (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Sales to nonconsolidated affiliates $ 2.8 $ 0.7 $ 1.0 Purchases from nonconsolidated affiliates $ — $ 0.6 $ 0.3 Balances due to or due from nonconsolidated affiliates were as follows for the periods presented below: (In millions) June 3, 2023 May 28, 2022 Receivables from nonconsolidated affiliates $ 0.5 $ 0.3 Payables to nonconsolidated affiliates $ — $ — |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Jun. 03, 2023 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt Long-term debt consisted of the following obligations: (In millions) June 3, 2023 May 28, 2022 Syndicated revolving line of credit, due July 2026 $ 426.7 $ 413.0 Term Loan A, 7.0179%, due July 2026 370.0 390.0 Term Loan B, 7.2679% due July 2028 615.6 621.8 Supplier financing program 2.1 3.1 Total debt $ 1,414.4 $ 1,427.9 Less: Unamortized discount and issuance costs (15.9) (19.4) Less: Current debt (33.4) (29.3) Long-term debt $ 1,365.1 $ 1,379.2 In connection with the acquisition of Knoll, in July 2021, the Company entered into a credit agreement that provided for a syndicated revolving line of credit and two term loans. The revolving line of credit provides the Company with up to $725 million in revolving variable interest borrowing capacity that matures in July 2026, replacing the previous $500 million syndicated revolving line of credit. The term loans consist of a five-year senior secured term loan "A" facility with an aggregate principal amount of $400 million and a seven-year senior secured loan "B" facility with an aggregate principal amount of $625 million, the proceeds of which were used to finance a portion of the cash consideration for the acquisition of Knoll, for the repayment of certain debt of Knoll, and to pay fees, costs, and expenses related thereto. In January 2023, the company entered into an Amendment to the credit agreement which transitioned the benchmark rate from LIBOR to the Secured Overnight Financing Rate ("SOFR") for U.S. dollar borrowings. SOFR is the recommended risk-free reference rate of the Federal Reserve Board and Alternative Reference Rates Committee, as defined within the credit agreement. The indebtedness incurred under the revolving line of credit and term loans is secured by substantially all of the Company’s tangible and intangible assets, including, without limitation, the Company’s intellectual property. The Company’s direct and indirect wholly-owned domestic subsidiaries have also guaranteed the obligations of the Company and the foreign borrowers under the revolving line of credit and term loans and pledged substantially all of their tangible and intangible assets as security for their obligations under such guarantee. During 2022, t he Company repaid $64 million of private placement notes due May 20, 2030, and recognized a loss of approximately $13.4 million on extinguishment of the debt ,which represented the premium on early redemption. The Company made principal payments on term loans "A" and "B" during the year ended June 3, 2023 in the amount of $20.0 million and $6.3 million, respectively and during the year ended May 28, 2022 in the amount of $10.0 million and $3.1 million, respectively. Prior to J uly 2021, the Company's syndicated revolving line of credit provided the Company with up t o $500 million in revolving variable interest borrowing capacity and included an "accordion feature" allowing the Company to increase , at its option and subject to the approval of the participating banks, the aggregate borrowing capacity of the facility by up to $250 million. Outstanding borrowings would bear interest at rates based on the prime rate, federal funds rate, LIBOR or negotiated rates as outlined in the agreement. Interest was payable periodically throughout the period if borrowings were outstanding. The Company paid off the outstanding balance due on the syndicated revolving line of credit during the first quarter of 2022. Available borrowings under the syndicated revolving line of credit were as follows for the periods indicated: (In millions) June 3, 2023 May 28, 2022 Syndicated revolving line of credit borrowing capacity $ 725.0 $ 725.0 Less: Borrowings under the syndicated revolving line of credit 426.7 413.0 Less: Outstanding letters of credit 14.1 15.4 Available borrowings under the syndicated revolving line of credit $ 284.2 $ 296.6 The senior secured revolving credit facility restricts, without prior consent, the Company's borrowings, capital leases, investments, liens, mergers, consolidations, restricted payments, and the sale of certain assets. In addition, for the credit facility and Term Loan A, the Company has agreed to maintain a financial performance ratio, a maximum first lien secured net leverage ratio covenant which is measured by the ratio of first lien debt (less unrestricted cash) to trailing four quarter adjusted consolidated EBITDA (as defined in the credit agreement) and is required to be less than 4.25:1 for the trailing four quarter periods ending November 21, 2021, and the three immediately succeeding fiscal quarters, then 4.00:1 for the next four fiscal quarters, and 3.75:1 at the end of each fiscal quarter thereafter, except that the Company may elect, under certain conditions, a step-up in the covenant level of 0.50 for the four subsequent trailing four quarter periods. 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 3, 2023 the Company was in compliance with these restrictions and performance ratios. On May 20, 2020, the Company entered into a third amendment to its existing Private Shelf Agreement, dated December 14, 2010, as amended (together with the third amendment, the "Agreement"), between the Company and PGIM, Inc. (formerly known as Prudential Investment Management, Inc.) and certain of its affiliates (collectively, “Prudential”). The Agreement provided for a $150.0 million revolving facility, which included $50.0 million of unsecured senior notes that were repaid on March 1, 2021 (the "Existing Notes") and an additional $50.0 million aggregate principal amount of unsecured senior notes issued on May 20, 2020 (the "2020 Notes"). The Notes and facility were paid off with the new revolver and term loans entered in connection with the acquisition of Knoll in July 2021. Annual maturities of debt for the five fiscal years subsequent to June 3, 2023 are as shown in the table below. (In millions) 2024 $ 33.4 2025 41.3 2026 46.2 2027 703.0 2028 6.2 Thereafter 584.3 Total $ 1,414.4 Supplier Financing Program The Company has an agreement with a third-party financial institution that allows certain participating suppliers the ability to finance payment obligations from the Company. Under this program, participating suppliers may finance payment obligations of the Company, prior to their scheduled due dates, at a discounted price to the third-party financial institution. The Company has lengthened the payment terms for certain suppliers that have chosen to participate in the program. As a result, certain amounts due to suppliers have payment terms that are longer than standard industry practice and as such, these amounts have been excluded from "Accounts payable" in the Consolidated Balance Sheets as the amounts have been accounted for by the Company as a current debt, within "Short-term borrowings and current portion of long-term debt". As of June 3, 2023, the liability related to the supplier financing program is $2.1 million. |
Leases
Leases | 12 Months Ended |
Jun. 03, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has leases for retail stores, showrooms, manufacturing facilities, warehouses and vehicles, which expire at various dates through 2042. Certain lease agreements include contingent rental payments based on per unit usage over a contractual amount and others include rental payments adjusted periodically for inflationary indexes. The Company's lease costs recognized in the Consolidated Statement of Income consist of the following: Year Ended Year Ended (In millions) June 3, 2023 May 28, 2022 Operating lease costs $ 99.3 $ 89.4 Short-term lease costs 11.2 10.4 Variable lease costs 12.0 10.3 Total $ 122.5 $ 110.1 Included in the Company's Right-of-use assets and Lease liabilities are variable lease costs, not included in the table above, for raw material purchases under certain supply arrangements that the Company has determined to meet the definition of a lease: Year Ended Year Ended June 3, 2023 May 28, 2022 Variable lease costs $ 96.2 $ 95.6 During fiscal 2023, the Company determined it was more likely than not that the fair value of certain right of use assets within the Global Retail reporting unit, specifically Fully, were below their carrying value and assessed these assets for impairment. As a result of this assessment, the Company recorded an impairment of $6.1 million in the Consolidated Statements of Comprehensive income. At June 3, 2023, the Company has no financing leases. The undiscounted annual future minimum lease payments related to the Company's right-of-use assets are summarized by fiscal year in the following table: (In millions) 2024 $ 81.5 2025 92.3 2026 79.1 2027 65.4 2028 58.5 Thereafter 185.0 Total lease payments* $ 561.8 Less interest 91.0 Present value of lease liabilities $ 470.8 *Lease payments exclude $2.2 million of legally binding minimum lease payments for leases signed but not yet commenced. Supplemental cash flow and other lease information as of and for periods indicated, includes (dollars in millions): Year Ended Year Ended June 3, 2023 May 28, 2022 Weighted-average remaining lease term (in years) Operating leases 6.9 7.1 Weighted-average discount rate Operating leases 2.4 % 1.9 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 100.0 $ 85.7 ROU assets obtained in exchange for new operating lease liabilities Operating leases $ 63.0 $ 89.1 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 03, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension 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 this plan is the last day of the fiscal year and the plan is frozen to new participants. The Knoll subsidiary has one domestic defined-benefit pension plan covering eligible U.S. nonunion employees. The measurement date for this plan is the last day of the fiscal year and the plan is frozen to new participants. 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 pension plans: Pension Benefits (In millions) 2023 2022 Domestic International Domestic International Change in benefit obligation: Benefit obligation at beginning of year $ 152.6 $ 104.5 $ — $ 140.9 Acquisition of Knoll — — 189.8 — Interest cost 6.1 3.1 3.9 2.4 Expected Administrative Expenses 0.6 — 0.5 — Loss related to settlement 4.7 — 1.0 — Foreign exchange impact — (2.5) — (14.1) Actuarial (gain) loss (1) (18.2) (26.2) (28.0) (21.9) Administrative expenses paid (0.7) — (0.5) — Benefits paid (7.2) (2.9) (4.2) (2.8) Benefits paid related to settlement (14.1) — (9.9) — Benefit obligation at end of year $ 123.8 $ 76.0 $ 152.6 $ 104.5 Change in plan assets: Fair value of plan assets at beginning of year $ 144.0 $ 93.5 $ — $ 109.9 Acquisition of Knoll — — 175.4 — Actual return on plan assets (2.9) (9.1) (16.8) (6.9) Foreign exchange impact (1.6) — (11.8) Employer contributions 7.2 4.5 — 5.0 Actual expenses paid (0.7) — (0.5) — Benefits paid (21.3) (2.9) (14.1) (2.7) Fair value of plan assets at end of year $ 126.3 $ 84.4 $ 144.0 $ 93.5 Funded status: Over (under) funded status at end of year $ 2.5 $ 8.4 $ (8.6) $ (11.0) Components of the amounts recognized in the Consolidated Balance Sheets: Current assets $ — $ — $ — $ — Non-current assets $ 2.5 $ 8.4 $ — $ — Current liabilities $ — $ — $ — $ — Non-current liabilities $ — $ — $ 8.6 $ 10.9 Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: Prior service cost $ — $ 0.4 $ — $ 0.5 Unrecognized net actuarial (gain) loss (4.4) 25.7 (2.8) 41.4 Accumulated other comprehensive (gain) loss $ (4.4) $ 26.1 $ (2.8) $ 41.9 (1) In fiscal 2023 and 2022, the net actuarial (gain) loss includes amounts resulting from changes in actuarial assumptions utilized to calculate our benefit plan obligations such as the weighted-average discount rate. The accumulated benefit obligation for the Company's pension plans tota led $196.5 million and $250.1 million as of fiscal 2023 and fiscal 2022, respectively. The following table is a summary of the annual cost of the Company's pension plans: Components of Net Periodic Benefit Costs and Other Changes Recognized in Other Comprehensive Income (Loss): (In millions) 2023 2022 2021 Domestic International Domestic International Domestic International Interest cost $ 6.1 $ 3.1 $ 3.9 $ 2.4 $ — $ 2.2 Expected return on plan assets (8.3) (4.7) (7.3) (5.1) — (4.6) Amortization of prior service costs (0.1) 0.1 — 0.1 — 0.1 Expected administrative expenses 0.6 — 0.5 — — — Settlement related expenses (0.6) — (0.1) — — — Amortization of net loss/(gain) — 2.2 — 4.5 — 5.3 Net periodic benefit (income) cost $ (2.3) $ 0.7 $ (3.0) $ 1.9 $ — $ 3.0 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): (In millions) 2023 2022 Domestic International Domestic International Net actuarial (gain) loss $ (2.2) $ (12.4) $ (2.9) $ (10.0) Net amortization 0.1 (3.4) 0.1 (10.6) Settlement charge 0.6 — — — Total recognized in other comprehensive loss $ (1.5) $ (15.8) $ (2.8) $ (20.6) 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 plans are as follows: Weighted-average assumptions used in the determination of net periodic benefit cost: (Percentages) 2023 2022 2021 Domestic International Domestic International Domestic International Discount rate (1) varies 3.33 varies 1.99 — 1.66 Compensation increase rate N/A 4.45 N/A 3.20 — 2.75 Expected return on plan assets 6.80 4.80 5.10 4.80 — 4.80 (1) Due to settlement activity during FYE 2023 in the domestic plan, there were two remeasurements as of 3/4/2023 and 6/3/2023. The discount rate for beginning of period is 4.40% and 5.18%, respectively. Due to settlement activity during fiscal year 2022, there were four remeasurements as of 8/28/2021, 11/27/2021, 2/26/2022, and 5/28/2022. The discount rate for beginning of period in fiscal 2022 is 2.90%, 2.89%, 3.00%, and 3.52% respectively. Weighted-average assumptions used in the determination of the projected benefit obligations: Discount rate 5.17 5.34 4.40 3.33 — 1.99 Compensation increase rate N/A 3.00 N/A 4.45 — 3.20 The Company uses a full yield curve approach to estimate the interest component of net periodic benefit cost for pension benefits. This method applies the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Plan Assets and Investment Strategies The assets of the Company's employee benefit plans 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 2023 and asset categories for the Company's pension plans for fiscal 2023 and 2022 are as follows: Targeted Asset Allocation Percentage Asset Category 2023 2022 Domestic International Domestic International Fixed income 70% 33% 46% 33% Common collective trusts 30% 67% 54% 67% Total 100% 100% 100% 100% Percentage of Plan Assets at Year End 2023 2022 Domestic International Domestic International Fixed income 70% 38% 45% 36% Common collective trusts 30% 62% 55% 64% Total 100% 100% 100% 100% Domestic (In millions) June 3, 2023 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 2.1 $ — $ 2.1 U.S. government securities — 17.5 17.5 Corporate bonds — 68.8 68.8 Common collective trusts-balanced — 37.9 37.9 Total $ 2.1 $ 124.2 $ 126.3 International (In millions) June 3, 2023 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 5.6 $ — $ 5.6 Foreign government obligations — 26.1 26.1 Common collective trusts-balanced — 52.7 52.7 Total $ 5.6 $ 78.8 $ 84.4 May 28, 2022 (In millions) Domestic Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 2.4 $ — $ 2.4 U.S. government securities — 10.3 10.3 Foreign government obligations — 51.8 51.8 Common collective trusts-balanced — 79.5 79.5 Total $ 2.4 $ 141.6 $ 144.0 May 28, 2022 (In millions) International Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 4.5 $ — $ 4.5 Foreign government obligations — 29.3 29.3 Common collective trusts-balanced — 59.7 59.7 Total $ 4.5 $ 89.0 $ 93.5 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 2023 and fiscal 2022, the Company made total cash contributions of $11.7 million and $5.0 million, respectively, to its pension plans. The Company expects to contribute approximately $4.6 million to its pension plans in fiscal 2024. 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 3, 2023. (In millions) Pension Benefits Domestic International 2024 $ 8.4 $ 2.8 2025 $ 9.5 $ 3.2 2026 $ 9.8 $ 3.1 2027 $ 9.8 $ 5.1 2028 $ 9.6 $ 3.9 2029-2033 $ 45.1 $ 24.8 401(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 MillerKnoll Retirement Plan and the Knoll Retirement Savings Plan. Employees under the plan are eligible to begin participating on their date of hire. The Company contributes to the plans as matching contributions a certain percentage of the participant’s salary deferral, subject to certain limitations defined in the plan documents. The Company’s other defined contribution retirement plans may provide for matching contributions, non-elective contributions and discretionary contributions as declared by management. Effective January 1, 2023, the Knoll Retirement Savings Plan was merged into the MillerKnoll Retirement Plan. The expense recorded for the Company's 401(k) matching and other discretionary contributions was $32.4 million, $36.3 million and $23.7 million in fiscal years 2023, 2022 and 2021, respectively. |
Common Stock and Per Share Info
Common Stock and Per Share Information | 12 Months Ended |
Jun. 03, 2023 | |
Earnings Per Share [Abstract] | |
Common Stock and Per Share Information | 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) 2023 2022 2021 Numerator: Numerator for both basic and diluted EPS, Net (loss) earnings attributable to MillerKnoll, Inc. $ 42.1 $ (27.1) $ 174.6 Denominator: Denominator for basic EPS, weighted-average common shares outstanding 75,478,000 73,160,212 58,931,268 Potentially dilutive shares resulting from stock plans 546,368 — 458,330 Denominator for diluted EPS 76,024,368 73,160,212 59,389,598 Equity awar ds of 2,119,223 shares, 1,245,988 shares and 207,365 shares of common stock were excluded from the denominator for the computation of diluted earnings per share for the fiscal years ended June 3, 2023, May 28, 2022 and May 29, 2021, respectively, because they were anti-dilutive. Common Stock |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 03, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company utilizes stock-based compensation incentives as a component of its employee and non-employee director and officer compensation philosophy. A c ommittee of the Board of Directors determines the terms of the awards granted and may grant various forms of equity-based incentive compensation. Currently, these incentives consist principally of stock options, restricted stock units, performance stock units, deferred stock units, and restricted shares. For all stock-based compensation plans, the Company issues authorized but unissued shares to fulfill plan terms. Since the inception of the employee stock purchase plan, 3,666,018 shares of common stock have been authorized for issuance and 246,338 shares remain available for future purchases as of June 3, 2023. At June 3, 2023, there were 8,164,945 shares authorized for issuance under active long-term incentive compensation plans: 7,182,670 shares authorized under the MillerKnoll, Inc. 2020 Long Term Incentive Plan (the "LTIP") and 982,275 shares authorized under the Knoll, Inc. 2021 Stock Incentive Plan, (the "SIP"), as amended. There were 3,327,940 shares available for issuance under the LTIP and 530,684 under the SIP as of June 3, 2023. Valuation and Expense Information The Company measures the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of grant. This compensation expense is recognized over the requisite service period, which includes any applicable performance period. Certain Company stock-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. Excluding fully vested and non-forfeitable deferred stock units described under "Deferred Compensation Plan" below, pre-tax compensation expense and the related income tax benefit for all types of stock-based programs were as follows for the periods indicated: (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Employee stock purchase program $ 0.5 $ 0.5 $ 0.4 Stock options 5.7 3.6 3.7 Restricted stock units 9.4 15.3 4.1 Performance share units 3.5 2.8 0.8 Restricted stock awards 1.1 9.2 — Total $ 20.2 $ 31.4 $ 9.0 Tax benefit $ 4.9 $ 7.7 $ 2.0 As of June 3, 2023, total pre-tax stock-based compensation cost not yet recognized related to non-vested awards was approximately $11.5 million. The weighted-average period over which this amount is expected to be recognized is 0.9 year. General terms, activity, and valuation methodology for each of the Company's stock-based compensation plans are as follows: Employee Stock Purchase Program The Company has an employee stock purchase plan (“ESPP”) which allows for eligible employees to participate in the purchase of shares of the Company’s common stock at a price equal to 85% of the closing price on the date of purchase, which coincides with the last trading day of each fiscal quarter. The ESPP is considered a liability award with estimated expense recognized over the three-month offering period which is subsequently adjusted to actual expense based on the fair value as of the date of purchase. Shares of common stock purchased under the ESPP were 185,551, 87,562, and 71,468 during the fiscal years ended 2023, 2022 and 2021 respectively. Stock Options The Company grants options to purchase the Company's stock to certain key employees and non-employee directors under its LTIP. Under the current award program, all options become exercisable between one year and three years from the date of grant and expire ten years from the date of grant. Most options are subject to graded vesting, and the related compensation expense is based on the fair value of the stock options on the date of grant using the Black-Scholes model and is recognized on a straight-line basis over the requisite service period. In fiscal 2023, there was one stock option valuation date, but two valuations. In fiscal 2022, there were two stock option valuation dates. In fiscal 2021, there was one stock option valuation date, but two valuations. Therefore, the table below has been presented with the assumptions relevant to each valuation date. The Company generally estimated the fair value of stock options on the date of grant using the Black-Scholes model; however, the Hull-White I lattice model was used where historical expected term data for the option conditions was not prevalent. In determining these values, the following weighted-average assumptions were used for the options granted during the fiscal years indicated: 2023 2022 2021 Valuation Method Hull-White I (1) Black-Scholes Black-Scholes Black-Scholes Risk-free interest rates (2) 2.91% 3.01% 0.47% 0.23-0.25% Hull-White I barrier (3) 1.36 N/A N/A N/A Expected term of options (4) N/A 3.4 years 3.3 years 3.8-4.1 years Expected volatility (5) 37.09% 51.58% 49.03% 43-44% Dividend yield (6) 2.52 % 2.50 % 1.64 % 1.99 % Weighted-average grant-date fair value of stock options: Granted with exercise prices equal to the fair market value of the stock on the date of grant N/A $ 9.43 $13.87-$14.36 $ 6.10 Granted with exercise prices greater than the fair market value of the stock on the date of grant $ 5.74 N/A N/A $ 5.62 (1) A conservative post-vest cancel rate of 0.00% was applied under the assumption that the options will be exercised. (2) Represents term-matched, zero-coupon risk-free rate from the Treasury Constant Maturity yield curve, continuously compounded. (3) Represents historical average of Section 16 Officers in-the-money exercise ratio from Company’s historical data through May 27, 2022. (4) Represents historical settlement data, using midpoint scenario with 1-year grant date filter assumption for outstanding options. (5) The blended volatility approach was used. 90% term-matched historical volatility from daily stock prices and 10% weighted average implied volatility from the 90 days preceding the grant date. (6) Represents the quarterly dividend divided by the three-month average stock price as of July 7 and 12, 2022, July 9, 2021, and February 28, 2023, for 2022 and 2021, respectively. The following is a summary of stock option activity during fiscal 2023: Shares Under Option Weighted-Average Exercise Prices Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at May 28, 2022 1,716,593 $ 26.83 $ 10.4 7.7 Granted 544,299 32.25 Exercised (49,482) 20.44 Forfeited or expired (7,210) 22.86 Outstanding at June 3, 2023 2,204,200 28.33 — 7.3 Exercisable at end of period 1,088,713 $ 26.57 $ — 6.5 The weighted-average remaining recognition period of the outstanding stock options at June 3, 2023 was 0.54 years. The total pre-tax intrinsic value of options exercised during fiscal 2023, 2022 and 2021 was $0.4 million, $1.8 million and $0.5 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, the options were not in-the-money as of that date. Total cash received during fiscal 2023 from the exercise of stock options was approximately $1.0 million. Restricted Stock Units The Company grants time-based restricted stock units to certain key employees under its LTIP. Currently outstanding awards generally cliff-vest or vest ratably over a three-year service period. Prorated vesting occurs under certain circumstances and full or partial accelerated vesting occurs upon retirement. Awards granted in fiscal 2023 had a graded vesting schedule of 25%, 25%, and 50% after the first, second, and third year, respectively. Each restricted stock unit represents one equivalent share of the Company's common stock to be issued, free of restrictions, after the vesting period. Compensation expense is based on the grant-date fair value and recognized on a straight-line basis over the requisite service period. Dividend reinvestment units are credited on the dividend payable date and vest with the underlying shares. The units do not entitle participants to the rights of holders of common stock, such as voting rights, until shares are issued after vesting. In conjunction with the acquisition of Knoll, Inc. on July 19, 2021, outstanding restricted stock unit awards previously granted under a Knoll stock compensation plan were automatically converted into MillerKnoll awards at the identified equity award exchange ratio, with each converted unit representing one equivalent share of the Company's common stock to be issued, free of restrictions, after the vesting period. The awards generally cliff-vest after a three-year service period from the original date of grant. The converted units do not entitle participants to the rights of holders of common stock, such as voting rights, until shares are issued after vesting. Restricted stock units awarded under a Knoll stock compensation plan are entitled to dividend rights, and dividend equivalents are accrued on the dividend record date. Upon vesting of the underlying shares, accrued dividend equivalents are paid in cash. The following is a summary of restricted stock unit activity during fiscal 2023: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at May 28, 2022 576,382 $ 37.33 $ 17.8 1.1 Granted 406,720 27.76 Forfeited (79,027) 33.54 Released (219,734) 38.46 Outstanding at June 3, 2023 684,341 $ 31.83 $ 9.9 1.0 The weighted-average remaining recognition period of the outstanding restricted stock units at June 3, 2023, was 1.1 years. The total market value of the units that vested during the twelve months ended June 3, 2023, was $6.0 million. In addition, $74 thousand in accrued cash dividends were paid upon vesting of the underlying shares of converted Knoll awards. The weighted-average grant-date fair value of restricted stock units granted during 2023, 2022, and 2021 was $27.76, $44.25, and $26.71, respectively. The intrinsic value presented above includes $60 thousand in accrued cash dividends on the underlying shares of outstanding converted Knoll restricted stock unit awards. Performance Stock Units The Company grants performance-based restricted stock units, commonly referred to as performance stock units, to certain key employees under its LTIP that vest subject to the satisfaction of pre-established financial and non-financial metrics. Each performance stock unit represents one equivalent share of the Company's common stock. The number of shares of Company common stock ultimately issued in connection with these performance stock units will be determined based on attainment of the pre-established metrics over a defined three-year service period. For members of the executive leadership team, this calculation is adjusted by a relative total shareholder return modifier. Compensation expense is recognized over the requisite service period on a straight-line basis and based on the grant-date fair value. For certain awards incorporating a market condition, grant-date fair value is determined using a Monte Carlo simulation. For each tranche, fair value is determined on the date performance metrics are approved. Performance stock units awarded under the LTIP do not have dividend rights. In conjunction with the acquisition of Knoll, Inc. on July 19, 2021, outstanding performance stock unit awards previously granted under a Knoll stock compensation plan were automatically converted into MillerKnoll awards with each converted unit representing one equivalent share of the Company's common stock. The number of common shares ultimately issued in connection with these performance stock units will be determined based on the attainment of a pre-established financial metric over a five-year service period ending December 31, 2023. The converted units do not entitle participants to the rights of holders of common stock, such as voting rights, until shares are issued after vesting. Performance stock units awarded under Knoll stock compensation plans are entitled to dividend rights, and dividend equivalents are accrued on the dividend record date. Upon vesting of the underlying shares, accrued dividend equivalents are paid in cash. The following is a summary of performance stock unit activity during fiscal 2023: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at May 28, 2022 364,087 $ 42.75 $ 11.3 0.9 Granted 172,645 27.30 Forfeited (179,631) 44.70 Released (6,130) 31.23 Outstanding at June 3, 2023 350,971 $ 34.41 $ 5.2 1.2 The weighted-average remaining recognition period of the outstanding performance stock units at June 3, 2023, was 0.68 years. The total market value for shares vested in a prior fiscal year but deferred that were released during the twelve months ended June 3, 2023, was $167 thousand; no additional shares were vested in fiscal 2023. The weighted-average grant-date fair value of performance stock units granted during fiscal 2023, 2022, and 2021 was $27.30, $43.06, and $37.21, respectively. The intrinsic value presented above includes $0.2 million in accrued cash dividends on the underlying shares of outstanding converted Knoll performance stock unit awards. Restricted Stock Awards In conjunction with the acquisition of Knoll, Inc. on July 19, 2021, outstanding restricted stock awards previously granted under a Knoll stock compensation plan were automatically converted into MillerKnoll awards at the identified equity award exchange ratio with each converted unit then representing one equivalent share of the Company's common stock to be issued, free of restrictions, after the vesting period. The awards generally cliff-vest after a three-year service period from the original date of grant. The restricted stock awards do not entitle the employee to rights of holders of common stock, such as voting rights, until restrictions are released after vesting. The Company recognizes the related compensation expense on a straight-line basis over the requisite service period. Restricted stock awards granted under Knoll's stock compensation plans are entitled to dividend rights, and dividend equivalents are accrued on the dividend record date. Upon vesting of the underlying shares, accrued dividend equivalents are paid in cash. The following is a summary of restricted stock activity during fiscal 2023: Share Units Weighted-Average Grant-Date Fair Value Outstanding at May 28, 2022 219,989 $ 44.36 Granted — — Forfeited (39,839) 44.18 Released (145,407) 44.35 Outstanding at June 3, 2023 34,743 $ 44.36 The weighted-average remaining recognition period of the outstanding restricted stock award shares at June 3, 2023 was 0.7 years. The total market value for shares that vested during the twelve months ended June 3, 2023, was $3.7 million. This includes $0.5 million of converted Knoll awards for which, due to change-in-control provisions, vesting was accelerated. In addition, $0.4 million in accrued cash dividends were paid upon vesting the underlying shares of converted Knoll awards. The weighted-average grant-date fair value of restricted stock awards granted during fiscal 2022 was $44.36 per share. There were no restricted stock awards granted in fiscal 2023 or fiscal 2021. Accrued cash dividends on the underlying shares reported above for outstanding converted Knoll restricted stock awards total $60 thousand. Executive Deferred Compensation Plan The MillerKnoll, Inc. Executive Equalization Retirement Plan, as amended (the "Executive Equalization Plan"), is a supplemental deferred compensation plan that 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 Compensation Committee of the Board of Directors. The plan allows participants to defer up to 50% of their base salary and up to 100% 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 ($330,000 in 2023). The Company does not guarantee a rate of return for amounts deferred pursuant to this plan. Instead, participants make investment elections for their deferrals and Company contributions which are subject to market conditions. Investment options are closely aligned to those available under the MillerKnoll Retirement Plan, except for the Company stock fund. In accordance with the terms of the Executive Equalization Plan and the Director Plan described below, participant deferrals and Company contributions have been placed in a Rabbi trust. The assets in the Rabbi trust remain subject to the claims of creditors of the Company and are not the property of the participant. Investments in securities other than the Company's common stock are included within the Other assets line item, while the remaining investments in the Company's stock are included in the line item Deferred compensation plan 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. Realized and unrealized gains and losses for investment assets other than Company common stock 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 and Director Deferred Compensation Plan The Company's non-employee directors may elect to receive their director fees in one or more of the following forms: cash, deferred cash, unrestricted Company shares at the market value at the date of grant, stock options, or shares of common stock to be received on a deferred basis, as described below. Stock options granted as director compensation vest in 1 year, expire in 10 years, and have an exercise price equal to the fair market value of the Company's common stock on the date of grant. Beginning in January 2022, not less than 50% of annual director fees must be paid in the form of Company equity. The Amended and Restated MillerKnoll, Inc, Director Deferred Compensation Plan (the "Director Plan") allows non-employee directors of the Company to defer all or a portion of their annual director fees in either a deferred cash account or, beginning in January 2022, a deferred stock account. In the deferred cash account, investment options are the same as those available under the MillerKnoll Retirement Plan, except for the Company stock fund. At the time(s) specified by the director for receipt of this deferred compensation, these deferred amounts will be paid to the director in cash. In the deferred stock account, deferred stock units are credited to the director with each unit representing one equivalent share of the Company's common stock to be issued after the deferral period. The deferred stock units are valued at the market price of the Company's common stock on the date of grant, and the value of the units credited are expensed on the date of grant. Each time a dividend is paid on the Company's common stock, the director is credited with dividend equivalent units. At the time(s) specified by the director for receipt of this deferred compensation, these deferred amounts will be paid to the director in shares of the Company's common stock. The units do not entitle the directors to the rights of holders of common stock, such as voting rights, until shares are issued. During fiscal year 2023, 25,230 deferred stock units were credited to directors pursuant to the Director Plan. The total fair value of deferred stock units issued during fiscal year 2023 was $0.6 million. At June 3, 2023, there were 41,824 deferred stock units outstanding. All of which are vested, with an aggregate intrinsic value of $0.6 million. The weighted-average grant date fair value of deferred stock units granted during 2023 and 2022 was $22.73 and $37.34 per share, respectively. All amounts deferred by directors pursuant to the Director Plan are fully vested and nonforfeitable. The following amounts and types of Company equity were issued to non-employee directors during the fiscal years indicated: 2023 2022 2021 Shares of common stock 27,785 23,255 3,013 Deferred stock units pursuant to the Director Plan 25,230 15,664 Stock options — — — |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 03, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of (loss) earnings before income taxes are as follows: (In millions) 2023 2022 2021 Domestic $ (90.3) $ (142.4) $ 135.1 Foreign 141.7 133.8 93.2 Total $ 51.4 $ (8.6) $ 228.3 The provision (benefit) for income taxes consists of the following: (In millions) 2023 2022 2021 Current: Domestic - Federal $ 4.2 $ (3.8) $ 13.2 Domestic - State 2.2 0.2 5.2 Foreign 42.3 38.1 22.8 48.7 34.5 41.2 Deferred: Domestic - Federal (32.5) (12.2) 10.4 Domestic - State (4.4) (5.0) 1.4 Foreign (7.3) (6.2) (4.7) (44.2) (23.4) 7.1 Total income tax provision $ 4.5 $ 11.1 $ 48.3 The following table represents a reconciliation of income taxes at the United States statutory rate of 21% with the effective tax rate as follows: (In millions) 2023 2022 2021 Income taxes computed at the United States Statutory rate $ 10.8 $ (1.8) $ 47.9 Increase (decrease) in taxes resulting from: State and local income taxes, net of federal income tax benefit (1.0) (4.0) 5.6 Non-deductible officers' compensation 0.9 5.3 0.5 Foreign-derived intangible income (1.7) — (2.1) Foreign-based company income 5.1 3.1 2.1 Global intangible low-taxed income 9.4 15.2 7.9 Foreign statutory rate differences 2.3 4.1 2.6 Research and development incentives (4.0) (4.8) (3.2) Federal return to provision adjustments (4.1) (0.6) (0.4) Foreign tax credit (15.6) (8.8) (10.3) Foreign withholding taxes and other miscellaneous foreign taxes 1.2 2.4 1.0 Change in valuation allowance against deferred tax assets 1.3 0.4 (2.1) Other, net (0.1) 0.6 (1.2) Income tax expense $ 4.5 $ 11.1 $ 48.3 Effective tax rate 8.8 % (130.1) % 21.2 % The tax effects and types of temporary differences that give rise to significant components of the deferred tax assets and liabilities at June 3, 2023 and May 28, 2022, are as follows: (In millions) 2023 2022 Deferred tax assets: Compensation-related accruals $ 15.2 $ 15.3 Capitalized research and experimental costs 17.6 — Accrued pension and post-retirement benefit obligations 0.4 7.1 Deferred revenue 5.6 6.9 Inventory related 16.1 10.0 Other reserves and accruals 10.9 12.3 Warranty 18.0 17.8 State and local tax net operating loss carryforwards and credits 4.7 7.2 Federal net operating loss carryforward 5.2 3.6 Federal and state nondeductible interest expense carryforward 7.9 1.0 Foreign tax net operating loss carryforwards and credits 14.2 15.9 Accrued step rent and tenant reimbursements 0.7 1.0 Lease liability 109.6 109.0 Other 5.1 6.0 Subtotal 231.2 213.1 Valuation allowance (12.7) (11.7) Total $ 218.5 $ 201.4 Deferred tax liabilities: Book basis in property in excess of tax basis $ 64.0 $ 72.3 Intangible assets 196.3 206.8 Interest rate swap 14.1 8.0 Right of use lease assets 99.1 100.5 Withholding taxes on planned repatriation of foreign earnings 5.8 8.3 Other 2.3 2.8 Total $ 381.6 $ 398.7 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 3, 2023, the Company had state and local tax NOL carry-forwards of $67.7 million, the state tax benefit of which is $4.1 million, which have expiration periods from 1 year to an unlimited term. The Company also had state credits with a state tax benefit of $0.6 million, which expire in 2 to 5 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 $0.7 million. At June 3, 2023, the Company had federal NOL carry-forwards of $24.6 million, the tax benefit of which is $5.2 million, which have expiration periods from 6 years to an unlimited term. For financial statement purposes, the NOL carry-forwards have been recognized as deferred tax assets. At June 3, 2023, the Company had federal deferred assets of $1.3 million, the tax benefit of which is $0.3 million, which is related to an investment in a foreign joint venture. For financial statement purposes, the assets have been recognized as deferred tax assets, subject to a valuation allowance of $0.3 million. At June 3, 2023, the Company had foreign net operating loss carry-forwards of $52.6 million, the tax benefit of which is $13.5 million, which have expiration periods from 5 years to an unlimited term. The Company also had foreign tax credits with a tax benefit of $0.7 million which have expiration periods from 8 to 10 years. For financial statement purposes, the NOL carry-forwards and foreign tax credits have been recognized as deferred tax assets, subject to a valuation allowance of $11.0 million. At June 3, 2023, the Company had foreign deferred assets of $2.6 million, the tax benefit of which is $0.7 million, which is related to various deferred taxes in Canada, Belgium and Ireland 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 $0.7 million. The Company intends to repatriate $169.4 million in cash held in certain foreign jurisdictions and as such has recorded a deferred tax liability related to foreign withholding taxes on these future dividends received in the U.S. from foreign subsidiaries of $5.8 million. A significant portion of this cash was previously taxed under the U.S. Tax Cut and Jobs Act either as one-time U.S. tax liability on undistributed foreign earnings or GILTI. The Company intends to remain indefinitely reinvested in the remaining undistributed earnings outside the U.S, which was $282.2 million on June 3, 2023. Determination of the total amount of unrecognized deferred income tax on the remaining 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 29, 2021 $ 2.1 Increases related to prior year income tax positions 0.5 Decreases related to lapse of applicable statute of limitations (0.3) Balance at May 28, 2022 $ 2.3 Increases related to current year income tax positions 0.1 Decreases related to lapse of applicable statute of limitations (0.6) Decreases related to settlements (0.2) Balance at June 3, 2023 $ 1.6 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 3, 2023 May 28, 2022 May 29, 2021 Interest and penalty (income) expense $ (0.2) $ — $ 0.1 Liability for interest and penalties $ 0.7 $ 0.9 $ 0.9 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 return for fiscal year 2022 has been fully accepted by the Internal Revenue Service under the Compliance Assurance Process (CAP) and the Company is awaiting final closing documentation. Knoll’s federal consolidated returns related to calendar years 2019 and 2020 have also been selected for examination by the Internal Revenue Service. 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 2020. |
Fair Value
Fair Value | 12 Months Ended |
Jun. 03, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Company's financial instruments consist of cash equivalents, marketable securities, accounts and notes receivable, deferred compensation plan, accounts payable, debt, interest rate swaps, foreign currency exchange contracts, redeemable noncontrolling interests, indefinite-lived intangible assets, and right of use assets. The Company's financial instruments, other than long-term debt, are recorded at fair value. The carrying value and fair value of the Company's long-term debt, including current maturities, is as follows for the periods indicated: (In millions) June 3, 2023 May 28, 2022 Carrying value $ 1,414.4 $ 1,427.9 Fair value $ 1,378.2 $ 1,364.7 The following describes the methods the Company uses to estimate the fair value of financial assets and liabilities recorded in net earnings, which have not significantly changed in the current period: Cash and cash equivalents — The Company invests excess cash in short term investments in the form of money market funds, which are valued using net asset value ("NAV"). Mutual Funds-equity — The Company's equity securities primarily include equity mutual funds. The equity mutual fund investments are recorded at fair value using quoted prices for similar securities. Deferred compensation plan — The Company's deferred compensation plan primarily includes various domestic and international mutual funds that are recorded at fair value using quoted prices for similar securities. Foreign currency exchange contracts — The Company's foreign currency exchange contracts are valued using an approach based on foreign currency exchange rates obtained from active markets. The estimated fair value of forward currency exchange contracts is based on month-end spot rates as adjusted by market-based current activity. These forward contracts are not designated as hedging instruments. The following table sets forth financial assets and liabilities measured at fair value through net income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of June 3, 2023 and May 28, 2022: (In millions) June 3, 2023 May 28, 2022 Financial Assets NAV Quoted Prices With Other Observable Inputs (Level 2) NAV Quoted Prices With Other Observable Inputs (Level 2) Cash equivalents: Money market funds $ 17.3 $ — $ 31.8 $ — Foreign currency forward contracts — 1.3 — 0.4 Deferred compensation plan — 16.3 — 15.0 Total $ 17.3 $ 17.6 $ 31.8 $ 15.4 Financial Liabilities Foreign currency forward contracts $ — $ 1.8 $ — $ 1.0 Total $ — $ 1.8 $ — $ 1.0 The following describes the methods the Company uses to estimate the fair value of financial assets and liabilities recorded in other comprehensive income, which have not significantly changed in the current period: Interest rate swap agreements — The value of the Company's interest rate swap agreements is determined using a market approach based on rates obtained from active markets. The interest rate swap agreements are designated as cash flow hedging instruments. The following table sets forth financial assets and liabilities measured at fair value through other comprehensive income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of June 3, 2023 and May 28, 2022. (In millions) June 3, 2023 May 28, 2022 Financial Assets Balance Sheet Location Quoted Prices with Other Observable Inputs (Level 2) Quoted Prices with Other Observable Inputs (Level 2) Interest rate swap agreement Other noncurrent assets $ 59.9 $ 31.9 Total $ 59.9 $ 31.9 Financial Liabilities Interest rate swap agreement Other liabilities $ 3.0 $ — Total $ 3.0 $ — The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in the Consolidated Statements of Comprehensive Income within Other (income) expense, net. The Company views its equity and fixed income mutual funds as available for use in its current operations. Accordingly, the investments are recorded within Current Assets within the Consolidated Balance Sheets. The Company reviews its investment portfolio for any unrealized losses that would be deemed other-than-temporary and requires the recognition of an impairment loss in earnings. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than its cost, the Company's intent to hold the investment, and whether it is more likely than not that the Company will be required to sell the investment before recovery of the cost basis. The Company also considers the type of security, related industry and sector performance, and published investment ratings. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. If conditions within individual markets, industry segments, or macro-economic environments deteriorate, the Company could incur future impairments. 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 Other current assets for unrealized gains and Other accrued liabilities for unrealized losses. The Consolidated Statements of Comprehensive Income classification for the fair values of these forward contracts is to Other (income) expense, 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 $99.5 million and $54.1 million as of June 3, 2023 and May 28, 2022, 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 £7.5 million and £43.1 million as of June 3, 2023 and May 28, 2022, 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 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. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. 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 the interest rate on indebtedness anticipated to be borrowed on the Company’s revolving line of credit up to the notional amount from a LIBOR-based floating interest rate plus applicable margin to a 1.949% fixed interest rate plus applicable margin as of the forward start date. The swap agreement was amended in February 2023 for each calculation period beginning on February 3, 2023, and thereafter, to replace the LIBOR-based floating interest rate with a Term SOFR rate, and a 1.910% modified fixed interest rate. In June 2017, the Company entered into a second 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 interest rate on 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 2.387% fixed interest rate plus applicable margin as of the forward start date. The swap agreement was amended in February 2023 for each calculation period beginning on February 3, 2023, and thereafter, to replace the LIBOR-based floating interest rate with a Term SOFR rate, and a 2.348% modified fixed interest rate. In January 2022, the Company entered into a third interest rate swap agreement. The interest rate swap is for an aggregate notional amount of $575.0 million with a forward start date of January 31, 2022 and a maturity date of January 29, 2027. The interest rate swap locked in the Company’s interest rate on the forecasted outstanding borrowings of $575.0 million at 1.689% exclusive of the credit spread on the variable rate debt. As a result of the transaction, under the terms of the agreement the Company effectively will convert one month Spread Adjusted Term SOFR floating interest rate plus applicable margin to 1.689% fixed interest rate and adjustment % plus applicable margin as of the forward start date.The swap agreement was amended in February 2023 for each calculation period beginning on January 31, 2023, and thereafter, to replace the LIBOR-based floating interest rate with a Term SOFR rate, and a 1.650% modified fixed interest rate. In February 2023, the Company entered into a fourth interest rate swap agreement. The interest rate swap is for an aggregate notional amount of $150.0 million with a forward start date of March 3, 2023 and a termination date of January 3, 2029. As a result of the transaction, under the terms of the agreement the Company effectively will convert one month Spread Adjusted Term SOFR floating interest rate plus applicable margin to 3.950% fixed interest rate and adjustment % plus applicable margin as of the forward start date. "Spread adjusted Term SOFR" means Term SOFR plus an adjustment % that varies with tenor. The Company typically selects a one month tenor and that is calculated as the one month Term SOFR rate plus 0.11448%. The interest rate swaps were designated cash flow hedges at inception and the facts and circumstances of the hedged relationship remains consistent with the initial quantitative effectiveness assessment in that the hedged instruments remain an effective accounting hedge as of June 3, 2023. Since a designated derivative meets hedge accounting criteria, the fair value of the hedge is recorded in the Consolidated Statements 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 millions) Notional Amount Forward Start Date Amendment Effective Date Termination Date Effective Fixed Interest Rate September 2016 Interest Rate Swap $ 150.0 January 3, 2018 February 3, 2023 January 3, 2028 1.910 % June 2017 Interest Rate Swap $ 75.0 January 3, 2018 February 3, 2023 January 3, 2028 2.348 % January 2022 Interest Rate Swap $ 575.0 January 31, 2022 January 31, 2023 January 29, 2027 1.650 % March 2023 Interest Rate Swap $ 150.0 March 3, 2023 none January 3, 2029 3.950 % As of June 3, 2023, the swaps above effectively converted indebtedness up to the notional amounts from a SOFR-based floating interest rate plus 0.11448% plus applicable margin to an effective fixed interest rate plus 0.11448% plus applicable margin under the terms of our Credit Agreement. Effective Fixed Interest Rates include the rates amended effective January 31, 2023, or February 3, 2023, for the first three swaps included in the chart above. For fiscal 2023, 2022 and 2021, there were no gains or losses recognized against earnings for hedge ineffectiveness. Effects of Derivatives on the Financial Statements The effects of non-designated derivatives on the consolidated financial statements were as follows for the fiscal years ended 2023 and 2022 (amounts presented exclude any income tax effects ): (In millions) Balance Sheet Location June 3, 2023 May 28, 2022 Non-designated derivatives: (1) Foreign currency forward contracts Current assets: Other current assets $ 1.3 $ 0.4 Foreign currency forward contracts Current liabilities: Other accrued liabilities $ 1.8 $ 1.0 (1) Designated derivative and their balance sheet locations are located in above table within financial assets and liabilities measured at fair value. Fiscal Year (In millions) Statement of Comprehensive Income Location June 3, 2023 May 28, 2022 May 29, 2021 Loss recognized on foreign currency forward contracts Other expense (income), net $ 4.8 $ 3.3 $ 0.8 The gain/(loss) 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 3, 2023 May 28, 2022 May 29, 2021 Interest rate swap $ 4.7 $ 41.4 $ 12.6 Reclassified from Accumulated other comprehensive loss into earnings within Interest expense for the fiscal year ended 2023, was a loss of $14.3 million and in fiscal years ended 2022, and 2021 were gains of $6.9 million and of $4.5 million, respectively. Pre-tax gains expected to be reclassified from Accumulated other comprehensive loss into earnings during the next twelve months are $28.2 million. The amount of gain, net of tax, expected to be reclassified out of Accumulated other comprehensive loss into earnings during the next twelve months is $21.1 million. Redeemable Noncontrolling Interests Redeemable noncontrolling interests are reported on the Consolidated Balance Sheets in mezzanine equity in Redeemable noncontrolling interests. These financial instruments represent a level 3 fair value measurement. On December 2, 2019, the Company purchased an additional 34% equity voting interest in HAY. Upon increasing its ownership to 67%, the Company obtained a controlling financial interest and consolidated the financial results of HAY. Additionally, the Company is a party to options, that if exercised, would require it to purchase the remaining 33% of the equity in HAY, at fair market value. This remaining redeemable noncontrolling interest in HAY is classified outside permanent equity in the Consolidated Balance Sheets and is carried at the current estimated redemption amount. The Company recognizes changes to the redemption value of redeemable noncontrolling interests as they occur and adjusts the carrying value to equal the redemption value at the end of each reporting period. The redemption amounts have been estimated based on the fair value of the subsidiary, determined using discounted cash flow methods. This represents a level 3 fair value measurement. Changes in the Company's redeemable noncontrolling interest in HAY for the year ended June 3, 2023 are as follows: (In millions) June 3, 2023 Beginning Balance $ 106.9 Dividend attributable to redeemable noncontrolling interests (4.9) Redemption value adjustment 1.9 Net income attributable to redeemable noncontrolling interests 4.0 Foreign currency translation adjustments (0.3) Ending Balance $ 107.6 Other |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 03, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties The Company provides coverage to the end-user for parts and labor on products sold under its warranty policy and for other product-related matters. The specific terms, conditions, and length of those warranties vary depending upon the product sold. 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. The Company provides an assurance-type warranty that ensures that products will function as intended. As such, the Company's estimated warranty obligation is accounted for as a liability and is recorded within current and long-term liabilities within the Consolidated Balance Sheets. Changes in the warranty reserve for the stated periods were as follows: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Accrual Balance — beginning $ 73.2 $ 60.1 $ 59.2 Accrual for warranty matters 24.6 16.6 12.8 Settlements and adjustments (23.9) (18.6) (11.9) Acquired through business acquisition — 15.1 — Accrual Balance — ending $ 73.9 $ 73.2 $ 60.1 Guarantees The Company is periodically required to provide performance bonds to do business with certain customers. These arrangements are common in the industry and generally have terms ranging between one year and three years. The bonds are required to provide assurance to customers that the products and services they have purchased will be installed and/or provided properly and without damage to their facilities. The bonds are provided by various bonding agencies. However, the Company is ultimately liable for claims that may occur against them. As of June 3, 2023, the Company had a maximum financial exposure related to performance bonds of approximately $8.9 million. The Company has no history of claims, nor is it aware of circumstances that would require it to pay, under any of these arrangements. The Company also believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the Company's Consolidated Financial Statements. Accordingly, no liability h as been recorded in respect to these bonds as of either June 3, 2023 or May 28, 2022. The Company has entered into standby letter of credit arrangements for purposes of protecting various insurance companies and lessors against default on insurance premium and lease payments. As of June 3, 2023, the Company had a maximum financial exposure from these standby letters of credit totaling approximately $14.1 million, all of which is considered usage against the Company's revolving line of credit. The Company has no history of claims, nor is it aware of circumstances that would require it to perform under any of these arrangements and believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the Company's Consolidated Financial Statements. Accordingly, no liability has been recorded as of June 3, 2023 and May 28, 2022. 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 have a material adverse effect, if any, on the Company's Consolidated Financial Statements. |
Operating Segments
Operating Segments | 12 Months Ended |
Jun. 03, 2023 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments Effective as of May 29, 2022, the beginning of fiscal year 2023, the Company implemented an organizational change that resulted in a change in the reportable segments. The Company has restated historical results to reflect this change. Below is a summary of the change in reportable segments. • The reportable segments now consist of three segments: Americas Contract ("Americas"), International Contract & Specialty ("International & Specialty"), and Global Retail ("Retail"). • The activities related to the manufacture and sale of furniture products direct to consumers and third-party retailers for the Knoll and Muuto brands that were previously reported within the Knoll segment have been moved to the Global Retail segment. • The activities related to the manufacture and sale of furniture products in the Americas for the Knoll, Muuto and Datesweiser brands that were previously reported within the Knoll segment have been moved to the Americas Contract segment. • The activities related to the manufacture and sale of furniture products in geographies other than the Americas for the Knoll and Muuto brands have been moved to the International Contract & Specialty segment. • The activities related to manufacture and sale of products for the Maharam brand have been moved from the Americas Contract segment to the International Contract & Specialty segment, along with the activities of Holly Hunt, Spinneybeck, Knoll Textiles, and Edelman, which were previously reported within the Knoll segment. The Americas Contract segment includes the operations associated with the design, manufacture and sale of furniture products directly or indirectly through an independent dealership network for office, healthcare, and educational environments throughout North and South America. The International Contract & Specialty segment includes the operations associated with the design, manufacture and sale of furniture products, indirectly or directly through an independent dealership network in Europe, the Middle East, Africa and Asia-Pacific as well as the global operations of the Specialty brands, which include Holly Hunt, Spinneybeck, Maharam, Edelman, and Knoll Textiles. The Global Retail segment includes global operations associated with the sale of modern design furnishings and accessories to third party retailers, as well as direct to consumer sales through eCommerce, direct-mail catalogs, and physical retail stores. 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 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 years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Net sales: Americas Contract $ 2,026.1 $ 1,929.1 $ 1,234.6 International Contract and Specialty 1,017.3 928.5 479.6 Global Retail 1,043.7 1,088.4 750.9 Total $ 4,087.1 $ 3,946.0 $ 2,465.1 Depreciation and amortization: Americas Contract $ 87.7 $ 104.5 $ 48.4 International Contract and Specialty 33.4 52.3 20.2 Global Retail 34.0 33.8 18.6 Corporate — — — Total $ 155.1 $ 190.6 $ 87.2 Operating earnings (loss): Americas Contract $ 99.6 $ (24.0) $ 97.2 International Contract and Specialty 98.6 69.9 49.4 Global Retail (15.5) 134.5 138.2 Corporate (60.4) (140.6) (52.3) Total $ 122.3 $ 39.8 $ 232.5 Capital expenditures: Americas Contract $ 52.4 $ 52.5 $ 40.8 International Contract and Specialty 15.6 17.8 11.3 Global Retail 15.3 24.4 7.7 Total $ 83.3 $ 94.7 $ 59.8 Goodwill: Americas Contract $ 528.4 $ 530.1 $ 160.7 International Contract and Specialty 303.0 304.3 111.2 Global Retail 390.3 $ 391.8 92.3 Total $ 1,221.7 $ 1,226.2 $ 364.2 Many of the Company's assets, including manufacturing, office and showroom facilities, support multiple segments. For that reason, it is impractical to disclose asset information on a segment basis. The accounting policies of the 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 furniture systems, seating, freestanding furniture, storage, casegoods, textiles, architectural and acoustical products. 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 years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Net sales: Workplace $ 1,559.7 $ 1,484.4 $ 855.1 Performance Seating 900.7 942.8 778.3 Lifestyle 1,400.0 1,286.6 696.2 Other (1) 226.7 232.2 135.5 Total $ 4,087.1 $ 3,946.0 $ 2,465.1 (1) “Other” primarily consists of uncategorized product sales and service sales. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jun. 03, 2023 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides an analysis of the changes in accumulated other comprehensive loss for the years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Cumulative translation adjustments at beginning of period $ (93.9) $ (3.9) $ (56.0) Other comprehensive (loss) income (20.1) (90.0) 52.1 Balance at end of period (114.0) (93.9) (3.9) Pension and other post-retirement benefit plans at beginning of period (36.9) (50.4) (59.2) Other comprehensive income before reclassifications (net of tax of ($3.50), ($.02), and ($0.03)) 14.8 13.5 5.3 Reclassification from accumulated other comprehensive income - Other, net 2.7 4.4 5.5 Tax expense (4.4) (4.4) (2.0) Net reclassifications (1.7) — 3.5 Net current period other comprehensive income 13.1 13.5 8.8 Balance at end of period (23.8) (36.9) (50.4) Interest rate swap agreement at beginning of period 23.7 (10.8) (18.9) Other comprehensive income before reclassifications (net of tax of ($6.2), ($11.6), and ($2.6)) 4.7 41.4 12.6 Reclassification from accumulated other comprehensive income - Other, net 14.3 (6.9) (4.5) Net reclassifications 14.3 (6.9) (4.5) Net current period other comprehensive income 19.0 34.5 8.1 Balance at end of period 42.7 23.7 (10.8) Unrealized holding gains on securities at beginning of period — — 0.1 Other comprehensive (loss) income before reclassifications — — (0.1) Balance at end of period — — — Total Accumulated other comprehensive loss $ (95.1) $ (107.1) $ (65.1) |
Restructuring and Integration E
Restructuring and Integration Expense | 12 Months Ended |
Jun. 03, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Integration Expense | Restructuring and Integration Expense As part of restructuring and integration activities, the Company has incurred expenses that qualify as exit and disposal costs under U.S. GAAP. These include severance and employee benefit costs as well as other direct separation benefit costs. Severance and employee benefit costs primarily relate to cash severance, as well as non-cash severance, including accelerated equity award compensation expense. The Company also incurred expenses that are an integral component of, and directly attribute to, our restructuring and integration activities, which do not qualify as exit and disposal costs under U.S. GAAP. These include integration implementation costs that relate primarily to professional fees and non-cash losses incurred on debt extinguishment. The expense associated with integration initiatives are included in Selling, General, and Administrative and the expense associated with restructuring activities are included in Restructuring expense in the Consolidated Statements of Comprehensive Income. Non-cash costs related to debt extinguishment in the financing of the transaction is recorded in Other expense (income), net in the Consolidated Statements of Comprehensive Income. Knoll Integration: Following the acquisition of Knoll, the Company announced a multi-year program (the "Knoll Integration") designed to reduce costs and integrate and optimize the combined organization. The Company currently expects that the Knoll Integration will result in pre-tax costs of approximately $140 million, comprised of the following categories: • Severance and employee benefit costs associated with plans to integrate the Company's operating structure, resulting in workforce reductions. These costs will primarily include: severance and employee benefits (cash severance, non-cash severance, including accelerated stock-compensation award expense and other termination benefits). • Exit and disposal activities include those incurred as a direct result of integration activities, primarily including the reorganization and consolidation of facilities and asset impairment charges. • Other integration costs include professional fees and other incremental third-party expenses, including a loss on extinguishment of debt associated with financing of the acquisition. For the year ended June 3, 2023, the Company incurred $18.0 million of costs related to the Knoll Integration including: $3.6 million of severance and employee benefit costs, $5.9 million of exit and disposal costs related to the consolidation of facilities, and $8.5 million of other integration costs. For the year ended May 28, 2022, the Company incurred $107.9 million of costs related to the Knoll Integration including: $51.1 million of severance and employee benefit costs, $15.5 million of non-cash asset impairments, $13.4 million of non-cash costs related to debt-extinguishment in the financing of the transaction, and $27.9 million of other integration costs. The following table provides an analysis of the changes in liability balance for Knoll Integration costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and exit and disposal activities) for the fiscal year ended June 3, 2023: (In millions) Severance and Employee Benefit Exit and Disposal Activities Total May 28, 2022 $ 1.4 $ — $ 1.4 Integration Costs 3.6 5.9 9.5 Amounts Paid (2.3) (5.9) (8.2) Non-cash costs 0.2 — 0.2 June 3, 2023 $ 2.9 $ — $ 2.9 The Company expects that a substantial portion of the liability for the Knoll Integration as of June 3, 2023, will be paid in the first quarter of fiscal year 2024. The following is a summary of integration expenses by segment for the period indicated: Twelve Months Ended (In millions) June 3, 2023 May 28, 2022 Americas Contract $ 9.7 $ 21.9 International Contract and Specialty 2.5 — Global Retail 0.2 — Corporate 5.6 86.0 Total $ 18.0 $ 107.9 2023 Restructuring Plan During fiscal year 2023, the Company announced a series of actions that relate to the 2023 restructuring plan ("2023 restructuring plan") to reduce expenses. These restructuring activities included voluntary and involuntary reductions in workforces and charges incurred in connection with the Fully decision. As the result of these actions, the Company projects an annualized expense reduction of approximately $30 million to $35 million. For the year ended June 3, 2023, the Company incurred $34.0 million of costs related to the 2023 restructuring plan comprised of $27.9 million of severance and employee benefit costs and $6.1 million of non-impairment charges related to the closure of the Fully business. The restructuring plan is complete and no future costs related to this plan are expected. The following table provides an analysis of the changes in liability balance for the 2023 restructuring plan that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and exit and disposal activities) for the fiscal year ended June 3, 2023: (In millions) Severance and Employee-Related Exit and Disposal Activities Total May 28, 2022 $ — $ — $ — Restructuring Costs 27.9 6.1 34.0 Amounts Paid (20.6) (6.1) (26.7) June 3, 2023 $ 7.3 $ — $ 7.3 The Company expects that remaining liability for the 2023 restructuring plan as of June 3, 2023, will be paid in fiscal year 2024. The following is a summary of restructuring costs by segment for the years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 Americas Contract $ 22.8 $ — International Contract & Specialty 1.3 — Retail 9.9 — Corporate — — Total $ 34.0 $ — |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Jun. 03, 2023 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities During the year ended May 28, 2022, the Company entered into long-term notes receivable with certain of its third-party owned dealers that are deemed to be variable interests in variable interest entities. The carrying value of these long-term notes receivable was $6.3 million and $1.2 million as of June 3, 2023 and May 28, 2022 respectively and represents the Company’s maximum exposure to loss. The Company is not deemed to be the primary beneficiary for any of these variable interest entities as each dealer controls the activities that most significantly impact the entity’s economic performance, including sales, marketing, and operations. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 03, 2023 | |
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 Charges to other accounts (4) Deductions (3) Balance at end of period Year ended June 3, 2023: Accounts receivable allowances — uncollectible accounts (1) $ 8.6 $ 0.5 $ — $ (3.0) $ 6.1 Accounts receivable allowances — credit memo (2) 1.1 (0.8) — — 0.3 Valuation allowance for deferred tax asset 11.7 1.3 — (0.3) 12.7 Year ended May 28, 2022: Accounts receivable allowances — uncollectible accounts (1) $ 4.8 $ 1.3 $ 4.7 $ (2.2) $ 8.6 Accounts receivable allowances — credit memo (2) 0.7 0.4 — — 1.1 Valuation allowance for deferred tax asset 8.9 0.4 — 2.4 11.7 Year ended May 29, 2021: Accounts receivable allowances — uncollectible accounts (1) $ 4.3 $ 1.7 $ — $ (1.2) $ 4.8 Accounts receivable allowances — credit memo (2) 0.1 — — 0.6 0.7 Allowance for possible losses on notes receivable 0.3 (0.3) — — — Valuation allowance for deferred tax asset 10.6 (2.3) — 0.6 8.9 (1) Activity under the “Charges to expenses 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. (4) Represents reserves recorded related to the Knoll entity. |
Significant Accounting and Re_2
Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Jun. 03, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of MillerKnoll, Inc. and its controlled 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. |
Fiscal Year | Fiscal YearThe Company's fiscal year ends on the Saturday closest to May 31. The fiscal year ended June 3, 2023, contained 53 weeks and the fiscal years ended May 28, 2022 and May 29, 2021 contained 52 weeks. |
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 are reflected as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. |
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 $40.8 million an d $43.1 million as of June 3, 2023 and May 28, 2022 , 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 previously maintained a portfolio of marketable securities primarily comprised of mutual funds. These investments were liquidated during fiscal year 2022 resulting in a cash in-flow in that year of approximately $7.7 million. |
Allowances for Credit Losses | Allowances for Credit Losses Allowances for credit losses related to accounts are managed at a level considered by management to be adequate to absorb an estimate of probable future losses existing at the balance sheet date. In estimating probable losses, we review accounts based on known customer exposures, historical credit experience, and specific identification of other potentially uncollectible accounts. An accounts receivable balance is considered past due when payment is not received within the stated terms. Accounts that are considered to have higher credit risk are reviewed using information available about the debtor, such as financial statements, news reports and published credit ratings. General information regarding industry trends, the economic environment is also used. We arrive at an estimated loss for specific concerns and estimate an additional amount for the remainder of trade balances based on historical trends and other factors previously referenced. 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. Subsequent recoveries, if any, are credited to bad debt expense when received. |
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 net realizable value and include material, labor and overhead. 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, however inventory cannot be subsequently written back up, since the reserve establishes a new (lower) cost basis. Inventory cost is determined using the first in, first out (FIFO) method. Further information on the Company's recorded inventory balances can be found in Note 4 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. 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 bypass 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. Each of the reporting units was reviewed for impairment using a qualitative assessment as of March 31, 2023. The Company elected to test each reporting unit qualitatively, as is permitted under ASU 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment. The Company concluded it to be more likely than not that their estimated fair values are greater than their respective carrying values. In connection with the segment reorganization, the Company’s reporting units have changed in composition, and goodwill was reallocated between such reporting units using a relative fair value approach. Accordingly, the Company performed interim goodwill impairment tests in the first quarter of 2023 for each reporting unit. Based on the results of the tests performed, the Company determined that the fair value of each reporting unit, both before and after the reorganization, exceeded its respective carrying amount. During the third quarter of fiscal year 2023, the Company assessed changes in circumstances that occurred during the quarter to determine if it was more likely than not that the fair values of any reporting units were below their carrying amounts. Although our annual impairment test is performed during the fourth quarter, we perform this qualitative assessment each interim reporting period. While there was no single determinate event, the consideration in totality of several factors that developed during the third quarter of fiscal year 2023 led us to conclude that it was more likely than not that the fair value of the Global Retail reporting unit was below its carrying amount. These factors included: (i) the decision to discontinue stand-alone operations of the Fully brand and (ii) the assessment of our third quarter results, for which the performance of the Global Retail reporting unit was below management's expectations. Accordingly, the Company performed an interim quantitative impairment analysis as of March 4, 2023 to determine the fair value of the Global Retail reporting unit as compared to the carrying value. The Company utilized a weighting of the income approach and the market approach to estimate the fair value of the Global Retail reporting unit. In performing the quantitative impairment test, the Company determined that the fair value of the Global Retail reporting unit exceeded the carrying amount and, as such, the reporting unit was not impaired. The Company determined that the Global Retail reporting unit exceeded its carrying value by 1% and therefore has a heightened risk of future impairments if any assumptions, estimates or market factors change in the future. The test for impairment requires the Company to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. We estimated the fair value of the Global Retail reporting unit using a discounted cash flow analysis. The discounted cash flow analysis used the present value of projected cash flows and a residual value. The Company employed a market-based approach in selecting the discount rate used in our analysis. The discount rate selected represents the market rates of return equal to what the Company believes a reasonable investor would expect to achieve on investments of similar size to the Company's reporting units. The Company believes the discount rate selected in the quantitative assessment is appropriate in that exceeds the estimated weighted average cost of capital for our business as a whole. The results of the impairment test are sensitive to changes in the discount rates and changes in the discount rate may result in future impairment. The Company evaluated the sensitivity of changes in forecasted sales, operating margin and the discount rate for the Global Retail reporting unit. Reducing the Global Retail reporting unit's forecasted sales by 5% in all years, and leaving all other assumptions static, would result in an impairment of $26.0 million. A decrease in the operating margin of 100 basis points would result in an impairment of $60.0 million. An increase in the discount rate of 100 basis points would result in an impairment of $46.0 million. The Company evaluates indefinite-lived trade name intangible assets for impairment using a qualitative assessment annually. The Company also tests for impairment using a quantitative assessment if events and circumstances indicate that it is more likely than not that the fair value of an indefinite-lived intangible asset is below its carrying amount. An impairment charge is recorded if the carrying amount of an indefinite-lived intangible asset exceeds the estimated fair value on the measurement date. During fiscal 2023, the Company determined through a qualitative assessment that the Knoll trade name carrying value was more then likely above its fair value. As a result, the Company performed a quantitative assessment to determine the fair value and as a result recognized a $19.7 million non-cash impairment charge to the indefinite-lived trade name. The carrying value of the Knoll trade name as of the measurement date was $173.0 million. The fair value of the Knoll trade name as of the measurement date is $153.3 million. In performing this quantitative assessment, we estimated the fair value using the relief-from-royalty method which requires assumptions related to: • forecasted revenue growth rate, • assumed royalty rates that could be payable if we did not own the trademark, and • a market participant discount rate based on a weighted-average cost of capital. The assumptions used reflect management’s best estimate; however, actual results could differ from our estimates. In completing our annual indefinite-lived trade name impairment test, fair value of the Knoll trade name was estimated using a discount rate of 12.0%, royalty rate of 2.00% and long-term growth rate of 2.5%. The Company’s estimates of the fair value of its Knoll indefinite-lived intangible asset is sensitive to changes in the key assumptions above as well as projected financial performance. Therefore, a sensitivity analysis was performed on certain key assumptions. Keeping all other assumptions constant, a 10% decrease in forecasted sales at June 3, 2023 would have resulted in $15.3 million of additional pre-tax impairment charges. A decrease in the royalty rate of 25 basis points would result in an additional $ 20.0 million If the estimated cash flows related to the Company's indefinite-lived intangibles were to decline in future periods, the Company may need to record an impairment charge. |
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 and cloud computing arrangements. Software for internal use is included in property and equipment and is depreciated over an estimated useful life not exceeding 10 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. |
Long-Lived Assets - Indefinite | The Company reviews the carrying value of long–lived assets for impairment when events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. If such indicators are present, the future undiscounted cash flows attributable to the asset or asset group are compared to the carrying value of the asset or asset group. 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 3, 2023 (In millions) Patent and Trademarks Customer Relationships Designs and Patterns Backlog Other Total Gross carrying value $ 60.1 $ 355.1 $ 42.0 $ 28.4 $ 12.7 $ 498.3 Accumulated amortization 30.8 95.8 9.2 28.4 9.4 173.6 Impairment 11.6 — — — — 11.6 Net $ 17.7 $ 259.3 $ 32.8 $ — $ 3.3 $ 313.1 May 28, 2022 Patent and Trademarks Customer Relationships Designs and Patterns Backlog Other Total Gross carrying value $ 57.9 $ 355.8 $ 42.0 $ 29.8 $ 11.6 $ 497.1 Accumulated amortization 24.7 66.0 5.9 29.8 8.3 134.7 Net $ 33.2 $ 289.8 $ 36.1 $ — $ 3.3 $ 362.4 |
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 3, 2023 , ar e as follows: (In millions) Retention Level (per occurrence) General liability $ 1.00 Auto liability $ 1.00 Workers' compensation $ 0.75 Health benefit $ 0.50 The Company accrues for its self-insurance arrangements, as well as reserves for health, prescription drugs, and dental benefit exposures based on actuarial estimates, which are recorded in Other liabilities in the Consolidated Balance Sheets. The value of the liability as of June 3, 2023 and May 28, 2022 was $13.2 million and $14.7 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, payment lag times and changes in actual experience could cause these estimates to change. The general, auto, and workers' compensation liabilities are managed through the Company's wholly-owned insurance captive. |
Research, Development, and Other Related Costs | Research, Development and Other Related Costs Research, development, pre-production and start-up costs are expensed as incurred. Research and development ("R&D") costs consist of expenditures incurred during the course of planned research and investigation aimed at discovery of new knowledge useful in developing new products or processes. R&D costs also include the 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 $67.6 million, $71.1 million and $50.8 million, in fiscal 2023, 2022, and 2021, respectively. Royalty payments made to designers of the Company's products as the products are sold are variable costs based on product sales. These expenses totaled $38.1 million , $37.6 million and $21.3 million in fiscal years 2023, 2022 and 2021 respectively. They are included in Design and research expense in the accompanying Consolidated Statements of Comprehensive Income |
Customer Payments and Incentives, and Revenue Recognition | 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 when performance obligations, based on the terms of customer contracts, are satisfied. This happens when control of goods and services based on the contract have been conveyed to the customer. Revenue for the sale of products is recognized at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. Revenue for services is recognized over time as the services are provided. The method of revenue recognition may vary, depending on the type of contract with the customer, as noted in the section "Disaggregated Revenue" in Note 2 of the Consolidated Financial Statements. The Company's contracts with customers include master agreements and certain other forms of contracts, which do not reach the level of a performance obligation until a purchase order is received from a customer. At the point in time that a purchase order under a contract is received by the Company, the collective group of documents represent an enforceable contract between the Company and the customer. While certain customer contracts may have a duration of greater than a year, all purchase orders are less than a year in duration. As of June 3, 2023, all unfulfilled performance obligations are expected to be fulfilled in the next twelve months. Variable consideration exists within certain contracts that the Company has with customers. When variable consideration is present in a contract with a customer, the Company estimates the amount that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. These estimates are primarily related to rebate programs which involve estimating future sales amounts and rebate percentages to use in the determination of transaction price. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Adjustments to net sales from changes in variable consideration related to performance obligations completed in previous periods are not material to the Company's financial statements. Also, the Company has no contracts with significant financing components. The Company accounts for shipping and handling activities as fulfillment activities and these costs are accrued within Cost of sales at the same time revenue is recognized. The Company does not record revenue for sales tax, value added tax or other taxes that are collected on behalf of government entities. The Company’s revenue is recorded net of these taxes as they are passed through to the relevant government entities. The Company has recognized incremental costs to obtain a contract as an expense when incurred as the amortization period is less than one year. The Company has not adjusted the amount of consideration to be received for any significant financing components as the Company’s contracts have a duration of one year or less. The Company’s revenue is comprised primarily of sales of products and installation services. Depending on the type of contract, the method of accounting and timing of revenue recognition may differ. Below, descriptions have been provided that summarize the Company’s different types of contracts and how revenue is recognized for each. • Single Performance Obligations - these contracts are transacted with customers and include only the product performance obligation. Most commonly, these contracts represent master agreements with independent third party dealers in which a purchase order represents the customer contract, point of sale transactions through the Retail segment, as well as customer purchase orders within the Americas Contract and International Contract & Specialty segments. For contracts that include a single performance obligation, the Company records revenue at the point in time when control has transferred to the customer. • Multiple Performance Obligations - these contracts are transacted with customers and include more than one performance obligation; products, which are shipped to the customer by the Company, and installation and other services, which are primarily fulfilled by independent third-party dealers. For contracts that include multiple performance obligations, the Company records revenue for the product performance obligation at the point in time when control transfers, generally upon transfer of title and risk of loss to the customer. In most cases, the Company has concluded that it is the agent for the installation services performance obligation and as such, the revenue and costs of these services are recorded net within Net sales in the Company’s Consolidated Statements of Comprehensive Income. In certain instances, entities owned by the Company, rather than independent third-party dealers, perform installation and other services. In these cases, Service revenue is generated by the Company’s entities that provide installation services, and is recognized by the Company over time as the services are provided. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation based on relative standalone selling prices. |
Leases | Leases The Company accounts for leases in accordance with ASC Topic 842, Leases, (“ASC 842”). For any new or modified lease, the Company, at the inception of the contract, determines whether a contract is or contains a lease. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company records right-of use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. As the rate implicit in the Company's leases is not easily determinable, the Company’s applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments. As none of the Company’s leases provide an implicit discount rate, the Company uses an estimated incremental borrowing rate at the lease commencement date in determining the present value of the lease payments. Relevant information used in determining the Company’s incremental borrowing rate includes the duration of the lease, location of the lease, and the Company’s credit risk relative to risk-free market rates. Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. Leases, and any leasehold improvements, are depreciated over the expected lease term. Additionally, certain leases include renewal or termination options, which can be exercised at the Company’s discretion. Lease terms include the non-cancelable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. The Company’s leases do not contain any residual value guarantees or material restrictive covenants. Variable lease costs associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease costs are presented as Operating expenses in the Company’s Consolidated Statements of Comprehensive Income in the same line item as the expense arising from fixed lease payments for operating leases. The Company determines if an arrangement is a lease at contract inception. Arrangements that are leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. If leased assets have leasehold improvements, the depreciable life of those leasehold improvements are limited by the expected lease term. ROU assets for operating leases are subject to the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment. The Company monitors for events or changes in circumstances that require a reassessment of a lease. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying |
Cost of Sales | Cost of SalesThe Company includes 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 its distribution network. |
Selling, General, and Administrative | Selling, General and Administrative The Company includes costs not directly related to the manufacturing of its 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. 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 judgment about forecasts of future taxable income. |
Stock-Based Compensation | Stock-Based Compensation The Company has several stock-based compensation plans, which are described in Note 10 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. When in a loss position, basic and diluted EPS use the same weighted-average number of shares outstanding. Refe r to Note 9 of the Consolidated Financial Statements for further information regarding the computation of EPS. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net earnings, foreign currency translation adjustments, unrealized holding gains on securities, unrealized gains on interest rate swap agreement and pension and post-retirement liability adjustments. Refer to Note 15 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. |
Derivatives and Hedging | 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 (income) expense, 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. |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted The Company evaluates all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB") for consideration of their applicability to our consolidated financial statements. We have assessed all ASUs issued but not yet adopted and concluded that those not disclosed are not relevant to the Company or are not expected to have a material impact. |
Significant Accounting and Re_3
Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Goodwill and Indefinite-lived Intangibles | The changes in the carrying amount of goodwill, by reporting segment, are as follows: (In millions) Americas Contract International Contract & Specialty Global Retail Total Balance at May 29, 2021 Goodwill $ 194.1 $ 103.0 $ 174.3 $ 471.4 Foreign currency translation adjustments 3.3 8.2 6.8 18.3 Accumulated impairment losses (36.7) — (88.8) (125.5) Net goodwill as of May 29, 2021 $ 160.7 $ 111.2 $ 92.3 $ 364.2 Balance at May 28, 2022 Goodwill $ 197.4 $ 111.2 $ 181.1 $ 489.7 Sale of owned dealer (0.3) — — (0.3) Acquisition of Knoll 346.0 226.8 330.7 903.5 Foreign currency translation adjustments 23.7 (33.7) (31.2) (41.2) Accumulated impairment losses (36.7) — (88.8) (125.5) Net goodwill as of May 28, 2022 $ 530.1 $ 304.3 $ 391.8 $ 1,226.2 Balance at June 3, 2023 Goodwill $ 566.8 $ 304.3 $ 480.6 $ 1,351.7 Foreign currency translation adjustments (1.7) (1.3) (1.5) (4.5) Accumulated impairment losses (36.7) — (88.8) (125.5) Net goodwill balance as of June 3, 2023 $ 528.4 $ 303.0 $ 390.3 $ 1,221.7 Other indefinite-lived assets included in the Consolidated Balance Sheets consist of the following: (In millions) Indefinite-lived Intangible Assets Balance at May 29, 2021 $ 97.6 Foreign currency translation adjustments (14.6) Acquisition of Knoll $ 418.0 Balance at May 28, 2022 $ 501.0 Foreign currency translation adjustments (0.6) Impairment charges (19.7) Balance at June 3, 2023 $ 480.7 |
Schedule of Property and Equipment | The following table summarizes our property as of the dates indicated: (In millions) June 3, 2023 May 28, 2022 Land and improvements $ 55.1 $ 54.4 Buildings and improvements 393.5 377.2 Machinery and equipment 1,066.6 1,027.0 Construction in progress 55.5 51.1 Accumulated depreciation (1,034.4) (928.2) Property and equipment, net $ 536.3 $ 581.5 |
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 3, 2023 (In millions) Patent and Trademarks Customer Relationships Designs and Patterns Backlog Other Total Gross carrying value $ 60.1 $ 355.1 $ 42.0 $ 28.4 $ 12.7 $ 498.3 Accumulated amortization 30.8 95.8 9.2 28.4 9.4 173.6 Impairment 11.6 — — — — 11.6 Net $ 17.7 $ 259.3 $ 32.8 $ — $ 3.3 $ 313.1 May 28, 2022 Patent and Trademarks Customer Relationships Designs and Patterns Backlog Other Total Gross carrying value $ 57.9 $ 355.8 $ 42.0 $ 29.8 $ 11.6 $ 497.1 Accumulated amortization 24.7 66.0 5.9 29.8 8.3 134.7 Net $ 33.2 $ 289.8 $ 36.1 $ — $ 3.3 $ 362.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense on existing amortizable intangible assets as of June 3, 2023, for each of the succeeding five fiscal years, is as follows: (In millions) 2024 $ 36.6 2025 36.4 2026 35.8 2027 33.2 2028 29.0 |
Schedule of Impairment Charges | The table below provides information related to the impairments recognized during the third quarter of fiscal 2023. These charges are included in "Impairment charges" and "Cost of sales" within the Consolidated Statements of Comprehensive Income. (In millions) Impairment Charge Property and equipment 3.8 Right of use asset 6.1 Trade name 11.6 Total $ 21.5 |
Schedule of Self Insurance Retention Levels | The Company's retention levels designated within significant insurance arrangements as of June 3, 2023 , ar e as follows: (In millions) Retention Level (per occurrence) General liability $ 1.00 Auto liability $ 1.00 Workers' compensation $ 0.75 Health benefit $ 0.50 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Revenue disaggregated by contract type has been provided in the table below: Year Ended (In millions) June 3, 2023 May 28, 2022 Net sales: Single performance obligation Product revenue $ 3,816.5 $ 3,660.1 Multiple performance obligations Product revenue 254.1 265.3 Service revenue 3.4 8.6 Other 13.1 12.0 Total $ 4,087.1 $ 3,946.0 Year Ended (In millions) June 3, 2023 May 28, 2022 Americas Contract: Workplace $ 1,305.8 $ 1,229.2 Performance Seating 437.8 442.6 Lifestyle 257.9 221.2 Other (1) 24.6 36.1 Total Americas Contract $ 2,026.1 $ 1,929.1 International Contract & Specialty: Workplace $ 170.1 $ 143.7 Performance Seating 252.2 242.0 Lifestyle 394.5 348.6 Other (1) 200.5 194.2 Total International Contract & Specialty $ 1,017.3 $ 928.5 Global Retail: Workplace $ 83.8 $ 111.5 Performance Seating 210.7 258.2 Lifestyle 747.6 716.8 Other (1) 1.6 1.9 Total Global Retail $ 1,043.7 $ 1,088.4 Total $ 4,087.1 $ 3,946.0 (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 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. Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Net sales: United States $ 2,918.0 $ 2,818.4 $ 1,728.9 International 1,169.1 1,127.6 736.2 Total $ 4,087.1 $ 3,946.0 $ 2,465.1 Long-lived assets: United States $ 518.7 $ 531.2 $ 311.1 International 135.6 144.9 70.6 Total $ 654.3 $ 676.1 $ 381.7 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions by Acquisition, Fair Value of Consideration Transferred | The acquisition date fair value of the consideration transferred for Knoll was approximately $1,887.3 million, which consisted of the following (in millions, except share amounts): Knoll Shares Herman Miller, Inc (now MillerKnoll, Inc.) Shares Exchanged Fair Value Cash Consideration: Shares of Knoll Common Stock issued and outstanding at July 19, 2021 49,444,825 $ 543.9 Knoll equivalent shares for outstanding option awards, outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest at July 19, 2021 184,857 1.4 Total number of Knoll shares for cash consideration 49,629,682 Shares of Knoll Preferred Stock issued and outstanding at July 19, 2021 169,165 254.4 Consideration for payment to settle Knoll's outstanding debt 376.9 Share Consideration: Shares of Knoll Common Stock issued and outstanding at July 19, 2021 49,444,825 Knoll equivalent shares for outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest at July 19, 2021 74,857 Total number of Knoll shares for share consideration 49,519,682 15,843,921 688.3 Replacement Share-Based Awards: Outstanding awards of Knoll Restricted Stock and Performance units relating to Knoll Common Stock at July 19, 2021 22.4 Total acquisition date fair value of consideration transferred $ 1,887.3 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition: (In millions) Fair Value Cash $ 88.0 Accounts receivable 82.3 Inventories 219.9 Other current assets 29.2 Property and equipment 296.5 Right-of-use assets 202.7 Intangible assets 756.6 Goodwill 903.5 Other noncurrent assets 25.1 Total assets acquired $ 2,603.8 Accounts payable 144.0 Other current liabilities 153.1 Lease liabilities 177.8 Other liabilities 241.6 Total liabilities assumed 716.5 Net Assets Acquired $ 1,887.3 |
Schedule of Valuation Method Employed, Useful Lives and Fair Value of Intangible Assets Acquired | The following table summarizes the acquired identified intangible assets, valuation method employed, useful lives and fair value, as determined by the Company as of the acquisition date: (In millions) Valuation Method Useful Life (years) Fair Value Backlog Multi-Period Excess Earnings Less than 1 Year $ 27.6 Trade name - indefinite lived Relief from Royalty Indefinite 418.0 Trade name - amortizing Relief from Royalty 5-10 Years 14.0 Designs Relief from Royalty 9-15 years 40.0 Customer Relationships Multi-Period Excess Earnings 2-15 years 257.0 Total $ 756.6 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) June 3, 2023 May 28, 2022 Finished goods and work in process $ 357.2 $ 441.6 Raw materials 130.2 145.7 Total $ 487.4 $ 587.3 |
Investments in Nonconsolidate_2
Investments in Nonconsolidated Affiliates (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investment Balances | (In millions) June 3, 2023 May 28, 2022 Investments in nonconsolidated affiliates $ 8.5 $ 9.9 |
Schedule of Equity Income From Nonconsolidated Affiliates | (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Equity (loss) earnings from nonconsolidated affiliates, net of tax $ (0.8) $ — $ 0.3 |
Schedule of Equity Method Investments | The Company had an ownership interest in two nonconsolidated affiliates at June 3, 2023. Refer to the Company's ownership percentages shown below: Ownership Interest June 3, 2023 May 28, 2022 Kvadrat Maharam Pty Limited 50.0% 50.0% Global Holdings Netherlands B.V. (Maars) 48.2% 48.2% |
Schedule of Related Party Transactions | Sales to and purchases from nonconsolidated affiliates were as follows for the periods presented below: (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Sales to nonconsolidated affiliates $ 2.8 $ 0.7 $ 1.0 Purchases from nonconsolidated affiliates $ — $ 0.6 $ 0.3 Balances due to or due from nonconsolidated affiliates were as follows for the periods presented below: (In millions) June 3, 2023 May 28, 2022 Receivables from nonconsolidated affiliates $ 0.5 $ 0.3 Payables to nonconsolidated affiliates $ — $ — |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following obligations: (In millions) June 3, 2023 May 28, 2022 Syndicated revolving line of credit, due July 2026 $ 426.7 $ 413.0 Term Loan A, 7.0179%, due July 2026 370.0 390.0 Term Loan B, 7.2679% due July 2028 615.6 621.8 Supplier financing program 2.1 3.1 Total debt $ 1,414.4 $ 1,427.9 Less: Unamortized discount and issuance costs (15.9) (19.4) Less: Current debt (33.4) (29.3) Long-term debt $ 1,365.1 $ 1,379.2 |
Schedule of Line of Credit Facilities | Available borrowings under the syndicated revolving line of credit were as follows for the periods indicated: (In millions) June 3, 2023 May 28, 2022 Syndicated revolving line of credit borrowing capacity $ 725.0 $ 725.0 Less: Borrowings under the syndicated revolving line of credit 426.7 413.0 Less: Outstanding letters of credit 14.1 15.4 Available borrowings under the syndicated revolving line of credit $ 284.2 $ 296.6 |
Schedule of Maturities of Long-term Debt | Annual maturities of debt for the five fiscal years subsequent to June 3, 2023 are as shown in the table below. (In millions) 2024 $ 33.4 2025 41.3 2026 46.2 2027 703.0 2028 6.2 Thereafter 584.3 Total $ 1,414.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense Components | The Company's lease costs recognized in the Consolidated Statement of Income consist of the following: Year Ended Year Ended (In millions) June 3, 2023 May 28, 2022 Operating lease costs $ 99.3 $ 89.4 Short-term lease costs 11.2 10.4 Variable lease costs 12.0 10.3 Total $ 122.5 $ 110.1 Included in the Company's Right-of-use assets and Lease liabilities are variable lease costs, not included in the table above, for raw material purchases under certain supply arrangements that the Company has determined to meet the definition of a lease: Year Ended Year Ended June 3, 2023 May 28, 2022 Variable lease costs $ 96.2 $ 95.6 Supplemental cash flow and other lease information as of and for periods indicated, includes (dollars in millions): Year Ended Year Ended June 3, 2023 May 28, 2022 Weighted-average remaining lease term (in years) Operating leases 6.9 7.1 Weighted-average discount rate Operating leases 2.4 % 1.9 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flow from operating leases $ 100.0 $ 85.7 ROU assets obtained in exchange for new operating lease liabilities Operating leases $ 63.0 $ 89.1 |
Schedule of Future Estimated Minimum Lease Payments | The undiscounted annual future minimum lease payments related to the Company's right-of-use assets are summarized by fiscal year in the following table: (In millions) 2024 $ 81.5 2025 92.3 2026 79.1 2027 65.4 2028 58.5 Thereafter 185.0 Total lease payments* $ 561.8 Less interest 91.0 Present value of lease liabilities $ 470.8 *Lease payments exclude $2.2 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
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 pension plans: Pension Benefits (In millions) 2023 2022 Domestic International Domestic International Change in benefit obligation: Benefit obligation at beginning of year $ 152.6 $ 104.5 $ — $ 140.9 Acquisition of Knoll — — 189.8 — Interest cost 6.1 3.1 3.9 2.4 Expected Administrative Expenses 0.6 — 0.5 — Loss related to settlement 4.7 — 1.0 — Foreign exchange impact — (2.5) — (14.1) Actuarial (gain) loss (1) (18.2) (26.2) (28.0) (21.9) Administrative expenses paid (0.7) — (0.5) — Benefits paid (7.2) (2.9) (4.2) (2.8) Benefits paid related to settlement (14.1) — (9.9) — Benefit obligation at end of year $ 123.8 $ 76.0 $ 152.6 $ 104.5 Change in plan assets: Fair value of plan assets at beginning of year $ 144.0 $ 93.5 $ — $ 109.9 Acquisition of Knoll — — 175.4 — Actual return on plan assets (2.9) (9.1) (16.8) (6.9) Foreign exchange impact (1.6) — (11.8) Employer contributions 7.2 4.5 — 5.0 Actual expenses paid (0.7) — (0.5) — Benefits paid (21.3) (2.9) (14.1) (2.7) Fair value of plan assets at end of year $ 126.3 $ 84.4 $ 144.0 $ 93.5 Funded status: Over (under) funded status at end of year $ 2.5 $ 8.4 $ (8.6) $ (11.0) Components of the amounts recognized in the Consolidated Balance Sheets: Current assets $ — $ — $ — $ — Non-current assets $ 2.5 $ 8.4 $ — $ — Current liabilities $ — $ — $ — $ — Non-current liabilities $ — $ — $ 8.6 $ 10.9 Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: Prior service cost $ — $ 0.4 $ — $ 0.5 Unrecognized net actuarial (gain) loss (4.4) 25.7 (2.8) 41.4 Accumulated other comprehensive (gain) loss $ (4.4) $ 26.1 $ (2.8) $ 41.9 (1) In fiscal 2023 and 2022, the net actuarial (gain) loss includes amounts resulting from changes in actuarial assumptions utilized to calculate our benefit plan obligations such as the weighted-average discount rate. |
Schedule of Net Benefit Costs | The following table is a summary of the annual cost of the Company's pension plans: Components of Net Periodic Benefit Costs and Other Changes Recognized in Other Comprehensive Income (Loss): (In millions) 2023 2022 2021 Domestic International Domestic International Domestic International Interest cost $ 6.1 $ 3.1 $ 3.9 $ 2.4 $ — $ 2.2 Expected return on plan assets (8.3) (4.7) (7.3) (5.1) — (4.6) Amortization of prior service costs (0.1) 0.1 — 0.1 — 0.1 Expected administrative expenses 0.6 — 0.5 — — — Settlement related expenses (0.6) — (0.1) — — — Amortization of net loss/(gain) — 2.2 — 4.5 — 5.3 Net periodic benefit (income) cost $ (2.3) $ 0.7 $ (3.0) $ 1.9 $ — $ 3.0 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): (In millions) 2023 2022 Domestic International Domestic International Net actuarial (gain) loss $ (2.2) $ (12.4) $ (2.9) $ (10.0) Net amortization 0.1 (3.4) 0.1 (10.6) Settlement charge 0.6 — — — Total recognized in other comprehensive loss $ (1.5) $ (15.8) $ (2.8) $ (20.6) |
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 plans are as follows: Weighted-average assumptions used in the determination of net periodic benefit cost: (Percentages) 2023 2022 2021 Domestic International Domestic International Domestic International Discount rate (1) varies 3.33 varies 1.99 — 1.66 Compensation increase rate N/A 4.45 N/A 3.20 — 2.75 Expected return on plan assets 6.80 4.80 5.10 4.80 — 4.80 (1) Due to settlement activity during FYE 2023 in the domestic plan, there were two remeasurements as of 3/4/2023 and 6/3/2023. The discount rate for beginning of period is 4.40% and 5.18%, respectively. Due to settlement activity during fiscal year 2022, there were four remeasurements as of 8/28/2021, 11/27/2021, 2/26/2022, and 5/28/2022. The discount rate for beginning of period in fiscal 2022 is 2.90%, 2.89%, 3.00%, and 3.52% respectively. Weighted-average assumptions used in the determination of the projected benefit obligations: Discount rate 5.17 5.34 4.40 3.33 — 1.99 Compensation increase rate N/A 3.00 N/A 4.45 — 3.20 |
Schedule of Fair Value and Allocation of Plan Assets | The target asset allocation at the end of fiscal 2023 and asset categories for the Company's pension plans for fiscal 2023 and 2022 are as follows: Targeted Asset Allocation Percentage Asset Category 2023 2022 Domestic International Domestic International Fixed income 70% 33% 46% 33% Common collective trusts 30% 67% 54% 67% Total 100% 100% 100% 100% Percentage of Plan Assets at Year End 2023 2022 Domestic International Domestic International Fixed income 70% 38% 45% 36% Common collective trusts 30% 62% 55% 64% Total 100% 100% 100% 100% Domestic (In millions) June 3, 2023 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 2.1 $ — $ 2.1 U.S. government securities — 17.5 17.5 Corporate bonds — 68.8 68.8 Common collective trusts-balanced — 37.9 37.9 Total $ 2.1 $ 124.2 $ 126.3 International (In millions) June 3, 2023 Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 5.6 $ — $ 5.6 Foreign government obligations — 26.1 26.1 Common collective trusts-balanced — 52.7 52.7 Total $ 5.6 $ 78.8 $ 84.4 May 28, 2022 (In millions) Domestic Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 2.4 $ — $ 2.4 U.S. government securities — 10.3 10.3 Foreign government obligations — 51.8 51.8 Common collective trusts-balanced — 79.5 79.5 Total $ 2.4 $ 141.6 $ 144.0 May 28, 2022 (In millions) International Asset Category Level 1 Level 2 Total Cash and cash equivalents $ 4.5 $ — $ 4.5 Foreign government obligations — 29.3 29.3 Common collective trusts-balanced — 59.7 59.7 Total $ 4.5 $ 89.0 $ 93.5 |
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 3, 2023. (In millions) Pension Benefits Domestic International 2024 $ 8.4 $ 2.8 2025 $ 9.5 $ 3.2 2026 $ 9.8 $ 3.1 2027 $ 9.8 $ 5.1 2028 $ 9.6 $ 3.9 2029-2033 $ 45.1 $ 24.8 |
Common Stock and Per Share In_2
Common Stock and Per Share Information (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
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) 2023 2022 2021 Numerator: Numerator for both basic and diluted EPS, Net (loss) earnings attributable to MillerKnoll, Inc. $ 42.1 $ (27.1) $ 174.6 Denominator: Denominator for basic EPS, weighted-average common shares outstanding 75,478,000 73,160,212 58,931,268 Potentially dilutive shares resulting from stock plans 546,368 — 458,330 Denominator for diluted EPS 76,024,368 73,160,212 59,389,598 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Pre-Tax Compensation Expense and Related Tax Benefits | Excluding fully vested and non-forfeitable deferred stock units described under "Deferred Compensation Plan" below, pre-tax compensation expense and the related income tax benefit for all types of stock-based programs were as follows for the periods indicated: (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Employee stock purchase program $ 0.5 $ 0.5 $ 0.4 Stock options 5.7 3.6 3.7 Restricted stock units 9.4 15.3 4.1 Performance share units 3.5 2.8 0.8 Restricted stock awards 1.1 9.2 — Total $ 20.2 $ 31.4 $ 9.0 Tax benefit $ 4.9 $ 7.7 $ 2.0 |
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: 2023 2022 2021 Valuation Method Hull-White I (1) Black-Scholes Black-Scholes Black-Scholes Risk-free interest rates (2) 2.91% 3.01% 0.47% 0.23-0.25% Hull-White I barrier (3) 1.36 N/A N/A N/A Expected term of options (4) N/A 3.4 years 3.3 years 3.8-4.1 years Expected volatility (5) 37.09% 51.58% 49.03% 43-44% Dividend yield (6) 2.52 % 2.50 % 1.64 % 1.99 % Weighted-average grant-date fair value of stock options: Granted with exercise prices equal to the fair market value of the stock on the date of grant N/A $ 9.43 $13.87-$14.36 $ 6.10 Granted with exercise prices greater than the fair market value of the stock on the date of grant $ 5.74 N/A N/A $ 5.62 (1) A conservative post-vest cancel rate of 0.00% was applied under the assumption that the options will be exercised. (2) Represents term-matched, zero-coupon risk-free rate from the Treasury Constant Maturity yield curve, continuously compounded. (3) Represents historical average of Section 16 Officers in-the-money exercise ratio from Company’s historical data through May 27, 2022. (4) Represents historical settlement data, using midpoint scenario with 1-year grant date filter assumption for outstanding options. (5) The blended volatility approach was used. 90% term-matched historical volatility from daily stock prices and 10% weighted average implied volatility from the 90 days preceding the grant date. (6) Represents the quarterly dividend divided by the three-month average stock price as of July 7 and 12, 2022, July 9, 2021, and February 28, 2023, for 2022 and 2021, respectively. |
Schedule of Stock Option Plan Transactions | The following is a summary of stock option activity during fiscal 2023: Shares Under Option Weighted-Average Exercise Prices Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at May 28, 2022 1,716,593 $ 26.83 $ 10.4 7.7 Granted 544,299 32.25 Exercised (49,482) 20.44 Forfeited or expired (7,210) 22.86 Outstanding at June 3, 2023 2,204,200 28.33 — 7.3 Exercisable at end of period 1,088,713 $ 26.57 $ — 6.5 |
Schedule of Restricted Stock Unit (RSU) Activity | The following is a summary of restricted stock unit activity during fiscal 2023: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at May 28, 2022 576,382 $ 37.33 $ 17.8 1.1 Granted 406,720 27.76 Forfeited (79,027) 33.54 Released (219,734) 38.46 Outstanding at June 3, 2023 684,341 $ 31.83 $ 9.9 1.0 The following is a summary of restricted stock activity during fiscal 2023: Share Units Weighted-Average Grant-Date Fair Value Outstanding at May 28, 2022 219,989 $ 44.36 Granted — — Forfeited (39,839) 44.18 Released (145,407) 44.35 Outstanding at June 3, 2023 34,743 $ 44.36 |
Schedule of Performance-based Stock Units (PSU) Activity | The following is a summary of performance stock unit activity during fiscal 2023: Share Units Weighted Average Grant-Date Fair Value Aggregate Intrinsic Value (in millions) Weighted-Average Remaining Contractual Term (Years) Outstanding at May 28, 2022 364,087 $ 42.75 $ 11.3 0.9 Granted 172,645 27.30 Forfeited (179,631) 44.70 Released (6,130) 31.23 Outstanding at June 3, 2023 350,971 $ 34.41 $ 5.2 1.2 |
Schedule of Director Share Based Compensation | 2023 2022 2021 Shares of common stock 27,785 23,255 3,013 Deferred stock units pursuant to the Director Plan 25,230 15,664 Stock options — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of (loss) earnings before income taxes are as follows: (In millions) 2023 2022 2021 Domestic $ (90.3) $ (142.4) $ 135.1 Foreign 141.7 133.8 93.2 Total $ 51.4 $ (8.6) $ 228.3 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consists of the following: (In millions) 2023 2022 2021 Current: Domestic - Federal $ 4.2 $ (3.8) $ 13.2 Domestic - State 2.2 0.2 5.2 Foreign 42.3 38.1 22.8 48.7 34.5 41.2 Deferred: Domestic - Federal (32.5) (12.2) 10.4 Domestic - State (4.4) (5.0) 1.4 Foreign (7.3) (6.2) (4.7) (44.2) (23.4) 7.1 Total income tax provision $ 4.5 $ 11.1 $ 48.3 |
Schedule of Effective Income Tax Rate Reconciliation | The following table represents a reconciliation of income taxes at the United States statutory rate of 21% with the effective tax rate as follows: (In millions) 2023 2022 2021 Income taxes computed at the United States Statutory rate $ 10.8 $ (1.8) $ 47.9 Increase (decrease) in taxes resulting from: State and local income taxes, net of federal income tax benefit (1.0) (4.0) 5.6 Non-deductible officers' compensation 0.9 5.3 0.5 Foreign-derived intangible income (1.7) — (2.1) Foreign-based company income 5.1 3.1 2.1 Global intangible low-taxed income 9.4 15.2 7.9 Foreign statutory rate differences 2.3 4.1 2.6 Research and development incentives (4.0) (4.8) (3.2) Federal return to provision adjustments (4.1) (0.6) (0.4) Foreign tax credit (15.6) (8.8) (10.3) Foreign withholding taxes and other miscellaneous foreign taxes 1.2 2.4 1.0 Change in valuation allowance against deferred tax assets 1.3 0.4 (2.1) Other, net (0.1) 0.6 (1.2) Income tax expense $ 4.5 $ 11.1 $ 48.3 Effective tax rate 8.8 % (130.1) % 21.2 % |
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 3, 2023 and May 28, 2022, are as follows: (In millions) 2023 2022 Deferred tax assets: Compensation-related accruals $ 15.2 $ 15.3 Capitalized research and experimental costs 17.6 — Accrued pension and post-retirement benefit obligations 0.4 7.1 Deferred revenue 5.6 6.9 Inventory related 16.1 10.0 Other reserves and accruals 10.9 12.3 Warranty 18.0 17.8 State and local tax net operating loss carryforwards and credits 4.7 7.2 Federal net operating loss carryforward 5.2 3.6 Federal and state nondeductible interest expense carryforward 7.9 1.0 Foreign tax net operating loss carryforwards and credits 14.2 15.9 Accrued step rent and tenant reimbursements 0.7 1.0 Lease liability 109.6 109.0 Other 5.1 6.0 Subtotal 231.2 213.1 Valuation allowance (12.7) (11.7) Total $ 218.5 $ 201.4 Deferred tax liabilities: Book basis in property in excess of tax basis $ 64.0 $ 72.3 Intangible assets 196.3 206.8 Interest rate swap 14.1 8.0 Right of use lease assets 99.1 100.5 Withholding taxes on planned repatriation of foreign earnings 5.8 8.3 Other 2.3 2.8 Total $ 381.6 $ 398.7 |
Schedule of Unrecognized Tax Benefits | The components of the Company's unrecognized tax benefits are as follows: (In millions) Balance at May 29, 2021 $ 2.1 Increases related to prior year income tax positions 0.5 Decreases related to lapse of applicable statute of limitations (0.3) Balance at May 28, 2022 $ 2.3 Increases related to current year income tax positions 0.1 Decreases related to lapse of applicable statute of limitations (0.6) Decreases related to settlements (0.2) Balance at June 3, 2023 $ 1.6 |
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 3, 2023 May 28, 2022 May 29, 2021 Interest and penalty (income) expense $ (0.2) $ — $ 0.1 Liability for interest and penalties $ 0.7 $ 0.9 $ 0.9 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value and fair value of the Company's long-term debt, including current maturities, is as follows for the periods indicated: (In millions) June 3, 2023 May 28, 2022 Carrying value $ 1,414.4 $ 1,427.9 Fair value $ 1,378.2 $ 1,364.7 |
Schedule of Assets and Liabilities Measured at Fair Value and Recorded in Net Earnings | The following table sets forth financial assets and liabilities measured at fair value through net income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of June 3, 2023 and May 28, 2022: (In millions) June 3, 2023 May 28, 2022 Financial Assets NAV Quoted Prices With Other Observable Inputs (Level 2) NAV Quoted Prices With Other Observable Inputs (Level 2) Cash equivalents: Money market funds $ 17.3 $ — $ 31.8 $ — Foreign currency forward contracts — 1.3 — 0.4 Deferred compensation plan — 16.3 — 15.0 Total $ 17.3 $ 17.6 $ 31.8 $ 15.4 Financial Liabilities Foreign currency forward contracts $ — $ 1.8 $ — $ 1.0 Total $ — $ 1.8 $ — $ 1.0 |
Schedule of Assets and Liabilities Measured at Fair Value and Recorded in Other Comprehensive Income | The following table sets forth financial assets and liabilities measured at fair value through other comprehensive income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of June 3, 2023 and May 28, 2022. (In millions) June 3, 2023 May 28, 2022 Financial Assets Balance Sheet Location Quoted Prices with Other Observable Inputs (Level 2) Quoted Prices with Other Observable Inputs (Level 2) Interest rate swap agreement Other noncurrent assets $ 59.9 $ 31.9 Total $ 59.9 $ 31.9 Financial Liabilities Interest rate swap agreement Other liabilities $ 3.0 $ — Total $ 3.0 $ — |
Schedule of Interest Rate Derivatives | (In millions) Notional Amount Forward Start Date Amendment Effective Date Termination Date Effective Fixed Interest Rate September 2016 Interest Rate Swap $ 150.0 January 3, 2018 February 3, 2023 January 3, 2028 1.910 % June 2017 Interest Rate Swap $ 75.0 January 3, 2018 February 3, 2023 January 3, 2028 2.348 % January 2022 Interest Rate Swap $ 575.0 January 31, 2022 January 31, 2023 January 29, 2027 1.650 % March 2023 Interest Rate Swap $ 150.0 March 3, 2023 none January 3, 2029 3.950 % |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The effects of non-designated derivatives on the consolidated financial statements were as follows for the fiscal years ended 2023 and 2022 (amounts presented exclude any income tax effects ): (In millions) Balance Sheet Location June 3, 2023 May 28, 2022 Non-designated derivatives: (1) Foreign currency forward contracts Current assets: Other current assets $ 1.3 $ 0.4 Foreign currency forward contracts Current liabilities: Other accrued liabilities $ 1.8 $ 1.0 (1) Designated derivative and their balance sheet locations are located in above table within financial assets and liabilities measured at fair value. Fiscal Year (In millions) Statement of Comprehensive Income Location June 3, 2023 May 28, 2022 May 29, 2021 Loss recognized on foreign currency forward contracts Other expense (income), net $ 4.8 $ 3.3 $ 0.8 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The gain/(loss) 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 3, 2023 May 28, 2022 May 29, 2021 Interest rate swap $ 4.7 $ 41.4 $ 12.6 |
Schedule of Redeemable Noncontrolling Interest | Changes in the Company's redeemable noncontrolling interest in HAY for the year ended June 3, 2023 are as follows: (In millions) June 3, 2023 Beginning Balance $ 106.9 Dividend attributable to redeemable noncontrolling interests (4.9) Redemption value adjustment 1.9 Net income attributable to redeemable noncontrolling interests 4.0 Foreign currency translation adjustments (0.3) Ending Balance $ 107.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the warranty reserve for the stated periods were as follows: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Accrual Balance — beginning $ 73.2 $ 60.1 $ 59.2 Accrual for warranty matters 24.6 16.6 12.8 Settlements and adjustments (23.9) (18.6) (11.9) Acquired through business acquisition — 15.1 — Accrual Balance — ending $ 73.9 $ 73.2 $ 60.1 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following is a summary of certain key financial measures for the years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Net sales: Americas Contract $ 2,026.1 $ 1,929.1 $ 1,234.6 International Contract and Specialty 1,017.3 928.5 479.6 Global Retail 1,043.7 1,088.4 750.9 Total $ 4,087.1 $ 3,946.0 $ 2,465.1 Depreciation and amortization: Americas Contract $ 87.7 $ 104.5 $ 48.4 International Contract and Specialty 33.4 52.3 20.2 Global Retail 34.0 33.8 18.6 Corporate — — — Total $ 155.1 $ 190.6 $ 87.2 Operating earnings (loss): Americas Contract $ 99.6 $ (24.0) $ 97.2 International Contract and Specialty 98.6 69.9 49.4 Global Retail (15.5) 134.5 138.2 Corporate (60.4) (140.6) (52.3) Total $ 122.3 $ 39.8 $ 232.5 Capital expenditures: Americas Contract $ 52.4 $ 52.5 $ 40.8 International Contract and Specialty 15.6 17.8 11.3 Global Retail 15.3 24.4 7.7 Total $ 83.3 $ 94.7 $ 59.8 Goodwill: Americas Contract $ 528.4 $ 530.1 $ 160.7 International Contract and Specialty 303.0 304.3 111.2 Global Retail 390.3 $ 391.8 92.3 Total $ 1,221.7 $ 1,226.2 $ 364.2 |
Schedule of Revenue from External Customers by Products and Services | The following is a summary of net sales estimated by product category for the years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Net sales: Workplace $ 1,559.7 $ 1,484.4 $ 855.1 Performance Seating 900.7 942.8 778.3 Lifestyle 1,400.0 1,286.6 696.2 Other (1) 226.7 232.2 135.5 Total $ 4,087.1 $ 3,946.0 $ 2,465.1 (1) “Other” primarily consists of uncategorized product sales and service sales. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table provides an analysis of the changes in accumulated other comprehensive loss for the years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 May 29, 2021 Cumulative translation adjustments at beginning of period $ (93.9) $ (3.9) $ (56.0) Other comprehensive (loss) income (20.1) (90.0) 52.1 Balance at end of period (114.0) (93.9) (3.9) Pension and other post-retirement benefit plans at beginning of period (36.9) (50.4) (59.2) Other comprehensive income before reclassifications (net of tax of ($3.50), ($.02), and ($0.03)) 14.8 13.5 5.3 Reclassification from accumulated other comprehensive income - Other, net 2.7 4.4 5.5 Tax expense (4.4) (4.4) (2.0) Net reclassifications (1.7) — 3.5 Net current period other comprehensive income 13.1 13.5 8.8 Balance at end of period (23.8) (36.9) (50.4) Interest rate swap agreement at beginning of period 23.7 (10.8) (18.9) Other comprehensive income before reclassifications (net of tax of ($6.2), ($11.6), and ($2.6)) 4.7 41.4 12.6 Reclassification from accumulated other comprehensive income - Other, net 14.3 (6.9) (4.5) Net reclassifications 14.3 (6.9) (4.5) Net current period other comprehensive income 19.0 34.5 8.1 Balance at end of period 42.7 23.7 (10.8) Unrealized holding gains on securities at beginning of period — — 0.1 Other comprehensive (loss) income before reclassifications — — (0.1) Balance at end of period — — — Total Accumulated other comprehensive loss $ (95.1) $ (107.1) $ (65.1) |
Restructuring and Integration_2
Restructuring and Integration Expense (Tables) | 12 Months Ended |
Jun. 03, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table provides an analysis of the changes in liability balance for Knoll Integration costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and exit and disposal activities) for the fiscal year ended June 3, 2023: (In millions) Severance and Employee Benefit Exit and Disposal Activities Total May 28, 2022 $ 1.4 $ — $ 1.4 Integration Costs 3.6 5.9 9.5 Amounts Paid (2.3) (5.9) (8.2) Non-cash costs 0.2 — 0.2 June 3, 2023 $ 2.9 $ — $ 2.9 (In millions) Severance and Employee-Related Exit and Disposal Activities Total May 28, 2022 $ — $ — $ — Restructuring Costs 27.9 6.1 34.0 Amounts Paid (20.6) (6.1) (26.7) June 3, 2023 $ 7.3 $ — $ 7.3 |
Schedule of Restructuring and Integration Costs | The following is a summary of integration expenses by segment for the period indicated: Twelve Months Ended (In millions) June 3, 2023 May 28, 2022 Americas Contract $ 9.7 $ 21.9 International Contract and Specialty 2.5 — Global Retail 0.2 — Corporate 5.6 86.0 Total $ 18.0 $ 107.9 The following is a summary of restructuring costs by segment for the years indicated: Year Ended (In millions) June 3, 2023 May 28, 2022 Americas Contract $ 22.8 $ — International Contract & Specialty 1.3 — Retail 9.9 — Corporate — — Total $ 34.0 $ — |
Significant Accounting and Re_4
Significant Accounting and Reporting Policies - Foreign Currency Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Forward Contracts | Other Expense Income | |||
Intercompany Foreign Currency Balance [Line Items] | |||
Foreign currency transaction net gain (loss) | $ (4.8) | $ (3.3) | $ (0.8) |
Significant Accounting and Re_5
Significant Accounting and Reporting Policies - Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Carrying value of cash equivalents | $ 40.8 | $ 43.1 |
Significant Accounting and Re_6
Significant Accounting and Reporting Policies - Marketable Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Accounting Policies [Abstract] | |||
Marketable securities sales | $ 0 | $ 7.7 | $ 5.3 |
Significant Accounting and Re_7
Significant Accounting and Reporting Policies - Schedule of Goodwill and Other Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | Jul. 19, 2021 | |
Goodwill [Roll Forward] | ||||
Goodwill | $ 1,351.7 | $ 489.7 | $ 471.4 | |
Sale of owned dealer | (0.3) | |||
Foreign currency translation adjustments | (4.5) | (41.2) | 18.3 | |
Accumulated impairment losses | (125.5) | (125.5) | (125.5) | |
Net goodwill | 1,221.7 | 1,226.2 | 364.2 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | 501 | 97.6 | ||
Foreign currency translation adjustments | (0.6) | (14.6) | ||
Ending balance | 480.7 | 501 | 97.6 | |
Knoll Product | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Impairment charges | (19.7) | |||
Trade name | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Impairment charges | (19.7) | |||
Americas Contract | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 566.8 | 197.4 | 194.1 | |
Sale of owned dealer | (0.3) | |||
Foreign currency translation adjustments | (1.7) | 23.7 | 3.3 | |
Accumulated impairment losses | (36.7) | (36.7) | (36.7) | |
Net goodwill | 528.4 | 530.1 | 160.7 | |
International Contract and Specialty | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 304.3 | 111.2 | 103 | |
Sale of owned dealer | 0 | |||
Foreign currency translation adjustments | (1.3) | (33.7) | 8.2 | |
Accumulated impairment losses | 0 | 0 | 0 | |
Net goodwill | 303 | 304.3 | 111.2 | |
Global Retail | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 480.6 | 181.1 | 174.3 | |
Sale of owned dealer | 0 | |||
Foreign currency translation adjustments | (1.5) | (31.2) | 6.8 | |
Accumulated impairment losses | (88.8) | (88.8) | (88.8) | |
Net goodwill | $ 390.3 | 391.8 | $ 92.3 | |
Knoll | ||||
Goodwill [Roll Forward] | ||||
Acquisition of knoll | 903.5 | |||
Net goodwill | $ 903.5 | |||
Knoll | Trade name | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Acquisition of knoll | 418 | |||
Knoll | Americas Contract | ||||
Goodwill [Roll Forward] | ||||
Acquisition of knoll | 346 | |||
Knoll | International Contract and Specialty | ||||
Goodwill [Roll Forward] | ||||
Acquisition of knoll | 226.8 | |||
Knoll | Global Retail | ||||
Goodwill [Roll Forward] | ||||
Acquisition of knoll | $ 330.7 |
Significant Accounting and Re_8
Significant Accounting and Reporting Policies - Goodwill and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | Mar. 04, 2023 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment | $ 125.5 | $ 125.5 | $ 125.5 | |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment charges | |||
Indefinite-lived intangibles | $ 480.7 | 501 | 97.6 | |
Trade name | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Impairment charges | 19.7 | |||
Trade name | Carrying value | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangibles | 173 | |||
Trade name | Fair value | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangibles | $ 153.3 | |||
Valuation Relief From Forecast Growth Rate 10% Decrease | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 10% | |||
Impairment charges | $ 15.3 | |||
Global Retail | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Excess of fair value over carrying amount (percent) | 1% | |||
Impairment | $ 88.8 | $ 88.8 | $ 88.8 | |
Measurement Input Forecasted Sales | Global Retail | Valuation Method, Reducing Reporting Unit's Forecasted Sales by 5% | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 5% | |||
Impairment | $ 26 | |||
Measurement Input, Operating Margin | Global Retail | Valuation Relief From Forecast Discount Rate 100 Basis Points Decrease | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 1% | |||
Impairment | $ 60 | |||
Discount Rate | Relief from Royalty Approach | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 12% | |||
Discount Rate | Valuation Approach Discount Rate 100bps Increase | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 1% | |||
Impairment charges | $ 15 | |||
Discount Rate | Global Retail | Valuation Relief From Forecast Discount Rate 100 Basis Points Increase | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 1% | |||
Impairment | $ 46 | |||
Royalty Rate | Relief from Royalty Approach | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 2% | |||
Royalty Rate | Valuation Approach Royalty Rate 25bps Decrease | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 0.25% | |||
Impairment charges | $ 20 | |||
Long-term Growth Rate | Relief from Royalty Approach | ||||
Indefinite-lived Intangible Assets [Line Items] | ||||
Measurement inputs (percent) | 2.50% |
Significant Accounting and Re_9
Significant Accounting and Reporting Policies - Schedule of Property, Plan and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ 1,034.4 | $ 928.2 |
Property and equipment, net | 536.3 | 581.5 |
Commitments for future capital purchases | 44.8 | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 1,066.6 | 1,027 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 40 years | |
Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 55.1 | 54.4 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 393.5 | 377.2 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 55.5 | $ 51.1 |
Significant Accounting and R_10
Significant Accounting and Reporting Policies - Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Finite-LIved Intangible Assets | ||
Gross carrying value | $ 498.3 | $ 497.1 |
Accumulated amortization | 173.6 | 134.7 |
Impairment | 11.6 | |
Net | $ 313.1 | 362.4 |
Minimum | ||
Finite-LIved Intangible Assets | ||
Remaining useful lives | 1 year | |
Maximum | ||
Finite-LIved Intangible Assets | ||
Remaining useful lives | 20 years | |
Patent and Trademarks | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | $ 60.1 | 57.9 |
Accumulated amortization | 30.8 | 24.7 |
Impairment | 11.6 | |
Net | $ 17.7 | 33.2 |
Remaining useful lives | 3 years 7 months 6 days | |
Customer Relationships | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | $ 355.1 | 355.8 |
Accumulated amortization | 95.8 | 66 |
Impairment | 0 | |
Net | $ 259.3 | 289.8 |
Remaining useful lives | 9 years 7 months 6 days | |
Designs and Patterns | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | $ 42 | 42 |
Accumulated amortization | 9.2 | 5.9 |
Impairment | 0 | |
Net | 32.8 | 36.1 |
Backlog | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | 28.4 | 29.8 |
Accumulated amortization | 28.4 | 29.8 |
Impairment | 0 | |
Net | 0 | 0 |
Other | ||
Finite-LIved Intangible Assets | ||
Gross carrying value | 12.7 | 11.6 |
Accumulated amortization | 9.4 | 8.3 |
Impairment | 0 | |
Net | $ 3.3 | $ 3.3 |
Significant Accounting and R_11
Significant Accounting and Reporting Policies - Schedule of Finite Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions | Jun. 03, 2023 USD ($) |
Accounting Policies [Abstract] | |
2024 | $ 36.6 |
2025 | 36.4 |
2026 | 35.8 |
2027 | 33.2 |
2028 | $ 29 |
Significant Accounting and R_12
Significant Accounting and Reporting Policies - Schedule of Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 04, 2023 | Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 41.2 | $ 0 | $ 0 | |
Brand And Sales Channel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 21.5 | |||
Property and equipment | Brand And Sales Channel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 3.8 | |||
Right of use asset | Brand And Sales Channel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 6.1 | |||
Trade name | Brand And Sales Channel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $ 11.6 |
Significant Accounting and R_13
Significant Accounting and Reporting Policies - Schedule of Self Insurance (Details) - USD ($) $ in Thousands | Jun. 03, 2023 | May 28, 2022 |
Accounting Policies [Abstract] | ||
General liability | $ 1,000 | |
Auto liability | 1,000 | |
Workers' compensation | 750 | |
Health benefit | 500 | |
Self-insurance arrangements liability | $ 13,200 | $ 14,700 |
Significant Accounting and R_14
Significant Accounting and Reporting Policies - Research, Development and Other Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Research, Development and Other Related Costs [Abstract] | |||
Design and research expense | $ 67.6 | $ 71.1 | $ 50.8 |
Royalty expense | $ 38.1 | $ 37.6 | $ 21.3 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue Disaggregated By Contract Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Single performance obligation | Product revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,816.5 | 3,660.1 | |
Multiple performance obligations | Product revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 254.1 | 265.3 | |
Multiple performance obligations | Service revenue | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3.4 | 8.6 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 13.1 | $ 12 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue Disaggregated By Product Type And Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Workplace | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,559.7 | 1,484.4 | 855.1 |
Performance Seating | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 900.7 | 942.8 | 778.3 |
Lifestyle | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,400 | 1,286.6 | 696.2 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 226.7 | 232.2 | $ 135.5 |
Americas Contract | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,026.1 | 1,929.1 | |
Americas Contract | Workplace | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,305.8 | 1,229.2 | |
Americas Contract | Performance Seating | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 437.8 | 442.6 | |
Americas Contract | Lifestyle | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 257.9 | 221.2 | |
Americas Contract | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24.6 | 36.1 | |
International Contract and Specialty | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,017.3 | 928.5 | |
International Contract and Specialty | Workplace | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 170.1 | 143.7 | |
International Contract and Specialty | Performance Seating | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 252.2 | 242 | |
International Contract and Specialty | Lifestyle | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 394.5 | 348.6 | |
International Contract and Specialty | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 200.5 | 194.2 | |
Global Retail | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,043.7 | 1,088.4 | |
Global Retail | Workplace | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 83.8 | 111.5 | |
Global Retail | Performance Seating | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 210.7 | 258.2 | |
Global Retail | Lifestyle | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 747.6 | 716.8 | |
Global Retail | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1.6 | $ 1.9 |
Revenue from Contract with Cust
Revenue from Contract with Customer - Revenue by Customer Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Revenues from External Customers and Long-Lived Assets | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Long-lived assets | 654.3 | 676.1 | 381.7 |
United States | |||
Revenues from External Customers and Long-Lived Assets | |||
Net sales | 2,918 | 2,818.4 | 1,728.9 |
Long-lived assets | 518.7 | 531.2 | 311.1 |
International | |||
Revenues from External Customers and Long-Lived Assets | |||
Net sales | 1,169.1 | 1,127.6 | 736.2 |
Long-lived assets | $ 135.6 | $ 144.9 | $ 70.6 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Segment Reporting Information | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Largest Single End-User | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information | |||
Net sales | $ 174.9 | $ 114.4 | $ 113 |
Concentration (percent) | 4% | 3% | 5% |
Company's Ten Largest Customers | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information | |||
Concentration (percent) | 14% | 11% | 17% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Assets and Contract Liabilities (Details) $ in Millions | 12 Months Ended |
Jun. 03, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Net sales recognized | $ 117.7 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Knoll Acquisition (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jul. 19, 2021 USD ($) $ / shares | May 28, 2022 USD ($) | Jun. 03, 2023 USD ($) | May 29, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,226.2 | $ 1,221.7 | $ 364.2 | |
Knoll | ||||
Business Acquisition [Line Items] | ||||
Transaction costs | $ 30 | |||
Number of shares of Herman Miller, Inc. (now MillerKnoll, Inc.) stock to be issued for each issued and outstanding share of Knoll (in shares) | 0.32 | |||
Business acquisition, share price (in dollar per share) | $ / shares | $ 11 | |||
Total acquisition date fair value of consideration transferred | $ 1,887.3 | |||
Cash payment to acquire equity interest | 1,176.6 | |||
Fair value of replacement share awards | 53.4 | |||
Amount preliminarily allocated to purchase price | 22.4 | |||
Amount allocated to future services and to be expensed over remaining service periods | 31 | |||
Goodwill | 903.5 | |||
Knoll | Knoll | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 903.5 | |||
Net decrease to goodwill | $ (22.4) |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Business Acquisitions by Acquisition, Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions | Jul. 19, 2021 | Jun. 03, 2023 | May 28, 2022 |
Business Acquisition [Line Items] | |||
Shares of Knoll Common Stock issued and outstanding (in shares) | 75,698,670 | 75,824,241 | |
Shares of Knoll common stock issued and outstanding (in shares) | 75,698,670 | 75,824,241 | |
Shares of Knoll Preferred Stock issued and outstanding (in shares) | 0 | 0 | |
Restricted stock awards | |||
Business Acquisition [Line Items] | |||
Knoll equivalent shares for outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest (in shares) | 34,743 | 219,989 | |
Knoll | |||
Business Acquisition [Line Items] | |||
Consideration for payment to settle Knoll's outstanding debt | $ 376.9 | ||
Total number of Knoll shares for share consideration (in shares) | 15,843,921 | ||
Total number of Knoll shares for share consideration | $ 688.3 | ||
Outstanding awards of Knoll Restricted Stock and Performance units relating to Knoll Common Stock | 22.4 | ||
Total acquisition date fair value of consideration transferred | $ 1,887.3 | ||
Knoll | |||
Business Acquisition [Line Items] | |||
Shares of Knoll Common Stock issued and outstanding (in shares) | 49,444,825 | ||
Shares of Knoll common stock issued and outstanding (in shares) | 49,444,825 | ||
Shares of Knoll Common Stock issued and outstanding | $ 543.9 | ||
Knoll equivalent shares for outstanding option awards, outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest (in shares) | 184,857 | ||
Knoll equivalent shares for outstanding option awards, outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest | $ 1.4 | ||
Total number of Knoll shares for cash consideration (in shares) | 49,629,682 | ||
Shares of Knoll Preferred Stock issued and outstanding (in shares) | 169,165 | ||
Shares of Knoll Preferred Stock issued and outstanding (in shares) | 169,165 | ||
Shares of Knoll Preferred Stock issued and outstanding | $ 254.4 | ||
Total number of Knoll shares for share consideration (in shares) | 49,519,682 | ||
Knoll | Restricted stock awards | |||
Business Acquisition [Line Items] | |||
Knoll equivalent shares for outstanding awards of restricted common stock held by non-employee directors and outstanding awards of performance units held by individuals who are former employees of Knoll and remain eligible to vest (in shares) | 74,857 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Schedule of Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 | Jul. 19, 2021 | May 29, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,221.7 | $ 1,226.2 | $ 364.2 | |
Knoll | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 88 | |||
Accounts receivable | 82.3 | |||
Inventories | 219.9 | |||
Other current assets | 29.2 | |||
Property and equipment | 296.5 | |||
Right-of-use assets | 202.7 | |||
Intangible assets | 756.6 | |||
Goodwill | 903.5 | |||
Other noncurrent assets | 25.1 | |||
Total assets acquired | 2,603.8 | |||
Accounts payable | 144 | |||
Other current liabilities | 153.1 | |||
Lease liabilities | 177.8 | |||
Other liabilities | 241.6 | |||
Total liabilities assumed | 716.5 | |||
Net Assets Acquired | $ 1,887.3 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Fair Value, Valuation and Useful Lives of Acquired Intangible Assets (Details) - Knoll - USD ($) $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | Jul. 19, 2021 | |
Business Acquisition [Line Items] | ||
Intangible assets | $ 756.6 | |
Trade name | ||
Business Acquisition [Line Items] | ||
Intangible assets | 418 | |
Backlog | ||
Business Acquisition [Line Items] | ||
Intangible assets | 27.6 | |
Trade name | ||
Business Acquisition [Line Items] | ||
Intangible assets | 14 | |
Trade name | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (years) | 5 years | |
Trade name | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (years) | 10 years | |
Designs | ||
Business Acquisition [Line Items] | ||
Intangible assets | 40 | |
Designs | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (years) | 9 years | |
Designs | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (years) | 15 years | |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 257 | |
Customer Relationships | Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (years) | 2 years | |
Customer Relationships | Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (years) | 15 years |
Acquisitions and Divestitures_5
Acquisitions and Divestitures - Contract Furniture Dealership Divestiture (Details) - CANADA - Wholly Owned Contract Furniture Dealership $ in Millions | Jan. 31, 2022 USD ($) |
Business Acquisition [Line Items] | |
Proceeds from divestiture of businesses | $ 2.8 |
Gain (loss) on disposition of business | $ 2 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods and work in process | $ 357.2 | $ 441.6 |
Raw materials | 130.2 | 145.7 |
Total | $ 487.4 | $ 587.3 |
Investments in Nonconsolidate_3
Investments in Nonconsolidated Affiliates - Schedule of Balance Sheet Values (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Investments in nonconsolidated affiliates | $ 8.5 | $ 9.9 |
Investments in Nonconsolidate_4
Investments in Nonconsolidated Affiliates - Schedule of Equity Method Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity (loss) earnings from nonconsolidated affiliates, net of tax | $ (0.8) | $ 0 | $ 0.3 |
Investments in Nonconsolidate_5
Investments in Nonconsolidated Affiliates - Schedule of Ownership Percentage (Details) | Jun. 03, 2023 | May 28, 2022 |
Kvadrat Maharam Pty Limited | ||
Schedule of Equity Method Investments | ||
Ownership interest (percent) | 50% | 50% |
Global Holdings Netherlands B.V. (Maars) | ||
Schedule of Equity Method Investments | ||
Ownership interest (percent) | 48.20% | 48.20% |
Investments in Nonconsolidate_6
Investments in Nonconsolidated Affiliates - Narrative (Details) $ in Millions | 3 Months Ended | |
Aug. 31, 2018 USD ($) | Jun. 03, 2023 USD ($) affiliate | |
Schedule of Equity Method Investments | ||
Number of nonconsolidated affiliates | affiliate | 2 | |
Global Holdings Netherlands B.V. (Maars) | MAARS | ||
Schedule of Equity Method Investments | ||
Ownership interest (percent) | 100% | |
Global Holdings Netherlands B.V. (Maars) | ||
Schedule of Equity Method Investments | ||
Difference between investment value versus Company's proportionate share of underlying net assets | $ 3.1 | $ 1 |
Amortizable difference between investment value versus Company's proportionate share of underlying net assets | 2.7 | |
Permanent difference between investment value versus Company's proportionate share of underlying net assets | $ 0.4 | |
Equity method investment impairment | $ 1 | |
Global Holdings Netherlands B.V. (Maars) | ||
Schedule of Equity Method Investments | ||
Outstanding equity interest acquired (percent) | 48.20% | |
Cash payment to acquire equity interest | $ 6.1 |
Investments in Nonconsolidate_7
Investments in Nonconsolidated Affiliates - Schedule of Sales/Purchases to/from Nonconsolidated Affiliates (Details) - Equity Method Investee - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Schedule of Equity Method Investments | |||
Sales to nonconsolidated affiliates | $ 2.8 | $ 0.7 | $ 1 |
Purchases from nonconsolidated affiliates | $ 0 | $ 0.6 | $ 0.3 |
Investments in Nonconsolidate_8
Investments in Nonconsolidated Affiliates - Schedule of Receivables from/Payables to Nonconsolidated Affiliates (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Receivables from nonconsolidated affiliates | $ 334.1 | $ 348.9 |
Payables to nonconsolidated affiliates | 269.5 | 355.1 |
Equity Method Investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Receivables from nonconsolidated affiliates | 0.5 | 0.3 |
Payables to nonconsolidated affiliates | $ 0 | $ 0 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Debt Instrument [Line Items] | ||
Supplier financing program | $ 2.1 | $ 3.1 |
Total debt | 1,414.4 | 1,427.9 |
Less: Unamortized discount and issuance costs | (15.9) | (19.4) |
Less: Current debt | (33.4) | (29.3) |
Long-term debt | $ 1,365.1 | 1,379.2 |
Term Loan A Due July 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 7.0179% | |
Term Loan B Due July 2028 | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 7.2679% | |
Syndicated line of credit | Syndicated Revolving Line Of Credit Due July 2026 | ||
Debt Instrument [Line Items] | ||
Syndicated revolving line of credit | $ 426.7 | 413 |
Term Loan A Due July 2026 | Notes | ||
Debt Instrument [Line Items] | ||
Debt securities | 370 | 390 |
Term Loan B Due July 2028 | Notes | ||
Debt Instrument [Line Items] | ||
Debt securities | $ 615.6 | $ 621.8 |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 USD ($) loan | Jun. 03, 2023 USD ($) | May 28, 2022 USD ($) | May 29, 2021 USD ($) | Jun. 30, 2021 USD ($) | May 20, 2020 USD ($) | |
Line of Credit Facility | ||||||
Loss on extinguishment of debt | $ 0 | $ (13,400,000) | $ 0 | |||
Supplier financing program | $ 2,100,000 | 3,100,000 | ||||
Maximum | ||||||
Line of Credit Facility | ||||||
Optional step-up in covenant level | 0.50 | |||||
Covenant Period One | ||||||
Line of Credit Facility | ||||||
Net leverage ratio | 425% | |||||
Covenant Period Two | ||||||
Line of Credit Facility | ||||||
Net leverage ratio | 400% | |||||
Covenant Period Three | ||||||
Line of Credit Facility | ||||||
Net leverage ratio | 375% | |||||
Syndicated line of credit | ||||||
Line of Credit Facility | ||||||
Additional borrowing capacity available under accordion feature | $ 250,000,000 | |||||
Line of credit | Syndicated line of credit | ||||||
Line of Credit Facility | ||||||
Borrowing capacity | $ 725,000,000 | 500,000,000 | ||||
Syndicated Revolving Line Of Credit Due August 2024 | Syndicated line of credit | ||||||
Line of Credit Facility | ||||||
Borrowing capacity | $ 500,000,000 | |||||
Private Placement Notes | Notes | ||||||
Line of Credit Facility | ||||||
Number of debt instruments | loan | 2 | |||||
Repayments of private placement notes | 64,000,000 | |||||
Loss on extinguishment of debt | 13,400,000 | |||||
Term Loan A Due July 2026 | Notes | ||||||
Line of Credit Facility | ||||||
Debt instrument principal payment | $ 20,000,000 | 10,000,000 | ||||
Term Loan A Due July 2026 | Senior Secured Loans | ||||||
Line of Credit Facility | ||||||
Debt commitment term | 5 years | |||||
Face amount of debt | $ 400,000,000 | |||||
Term Loan B Due July 2028 | Notes | ||||||
Line of Credit Facility | ||||||
Debt instrument principal payment | $ 6,300,000 | $ 3,100,000 | ||||
Term Loan B Due July 2028 | Senior Secured Loans | ||||||
Line of Credit Facility | ||||||
Debt commitment term | 7 years | |||||
Face amount of debt | $ 625,000,000 | |||||
Notesdue2021 | Syndicated line of credit | ||||||
Line of Credit Facility | ||||||
Borrowing capacity | $ 150,000,000 | |||||
Notesdue2021 | Notes | ||||||
Line of Credit Facility | ||||||
Face amount of debt | $ 50,000,000 |
Short-Term Borrowings and Lon_5
Short-Term Borrowings and Long-Term Debt - Available Borrowings Under Syndicated Line of Credit (Details) - Syndicated Revolving Line Of Credit Due July 2026 - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Syndicated line of credit | ||
Debt Instrument [Line Items] | ||
Syndicated revolving line of credit borrowing capacity | $ 725 | $ 725 |
Less: Borrowings under the syndicated revolving line of credit | 426.7 | 413 |
Available borrowings under the syndicated revolving line of credit | 284.2 | 296.6 |
Letters of credit | ||
Debt Instrument [Line Items] | ||
Less: Outstanding letters of credit | $ 14.1 | $ 15.4 |
Short-Term Borrowings and Lon_6
Short-Term Borrowings and Long-Term Debt - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 33.4 | |
2025 | 41.3 | |
2026 | 46.2 | |
2027 | 703 | |
2028 | 6.2 | |
Thereafter | 584.3 | |
Total debt | $ 1,414.4 | $ 1,427.9 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
Leases [Abstract] | ||
Operating lease costs | $ 99.3 | $ 89.4 |
Short-term lease costs | 11.2 | 10.4 |
Variable lease costs | 12 | 10.3 |
Total | 122.5 | 110.1 |
Variable lease costs | 96.2 | $ 95.6 |
Right of use asset impairment charge | $ 6.1 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity (Details) $ in Millions | Jun. 03, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 81.5 |
2025 | 92.3 |
2026 | 79.1 |
2027 | 65.4 |
2028 | 58.5 |
Thereafter | 185 |
Total lease payments | 561.8 |
Less interest | 91 |
Present value of lease liabilities | 470.8 |
Future payment commitment for leases not yet commenced | $ 2.2 |
Leases - Schedule of Cash Flow
Leases - Schedule of Cash Flow and Other Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
Weighted-average remaining lease term (in years) | ||
Operating leases | 6 years 10 months 24 days | 7 years 1 month 6 days |
Weighted-average discount rate | ||
Operating leases | 2.40% | 1.90% |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flow from operating leases | $ 100 | $ 85.7 |
ROU assets obtained in exchange for new operating lease liabilities | ||
Operating leases | $ 63 | $ 89.1 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 USD ($) defined_benefit_plan | May 28, 2022 USD ($) | May 29, 2021 USD ($) | |
Defined Benefit Plan Disclosure | |||
Number of pension plans | defined_benefit_plan | 1 | ||
Pension contributions | $ 11.7 | $ 5 | $ 5.4 |
Cost recognized | 32.4 | 36.3 | $ 23.7 |
Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Accumulated benefit obligation | 196.5 | $ 250.1 | |
Expected contributions to be made in fiscal year 2024 | $ 4.6 |
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. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Pension and post-retirement benefits | $ 7.5 | $ 25 | |
United States | Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 152.6 | 0 | |
Acquisition of Knoll | 0 | 189.8 | |
Interest cost | 6.1 | 3.9 | $ 0 |
Expected Administrative Expenses | 0.6 | 0.5 | 0 |
Loss related to settlement | 4.7 | 1 | |
Foreign exchange impact | 0 | 0 | |
Actuarial gain (loss) | (18.2) | (28) | |
Administrative expenses paid | (0.7) | (0.5) | |
Benefits paid | (7.2) | (4.2) | |
Benefits paid related to settlement | (14.1) | (9.9) | |
Benefit obligation at end of year | 123.8 | 152.6 | 0 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 144 | 0 | |
Acquisition of Knoll | 0 | 175.4 | |
Actual return on plan assets | (2.9) | (16.8) | |
Foreign exchange impact | 0 | ||
Employer contributions | 7.2 | 0 | |
Actual expenses paid | (0.7) | (0.5) | |
Benefits paid | (21.3) | (14.1) | |
Fair value of plan assets at end of year | 126.3 | 144 | 0 |
Funded status: | |||
Over (under) funded status at end of year | 2.5 | (8.6) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Current assets | 0 | 0 | |
Non-current assets | 2.5 | 0 | |
Current liabilities | 0 | 0 | |
Pension and post-retirement benefits | 0 | 8.6 | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||
Prior service cost | 0 | 0 | |
Unrecognized net actuarial (gain) loss | (4.4) | (2.8) | |
Accumulated other comprehensive (gain) loss | (4.4) | (2.8) | |
International | |||
Change in benefit obligation: | |||
Expected Administrative Expenses | 0 | ||
Loss related to settlement | 0 | ||
Administrative expenses paid | 0 | ||
Benefits paid related to settlement | 0 | ||
International | Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 104.5 | 140.9 | |
Acquisition of Knoll | 0 | 0 | |
Interest cost | 3.1 | 2.4 | 2.2 |
Expected Administrative Expenses | 0 | 0 | 0 |
Loss related to settlement | 0 | ||
Foreign exchange impact | (2.5) | (14.1) | |
Actuarial gain (loss) | (26.2) | (21.9) | |
Administrative expenses paid | 0 | ||
Benefits paid | (2.9) | (2.8) | |
Benefits paid related to settlement | 0 | ||
Benefit obligation at end of year | 76 | 104.5 | 140.9 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 93.5 | 109.9 | |
Acquisition of Knoll | 0 | 0 | |
Actual return on plan assets | (9.1) | (6.9) | |
Foreign exchange impact | (1.6) | (11.8) | |
Employer contributions | 4.5 | 5 | |
Actual expenses paid | 0 | 0 | |
Benefits paid | (2.9) | (2.7) | |
Fair value of plan assets at end of year | 84.4 | 93.5 | $ 109.9 |
Funded status: | |||
Over (under) funded status at end of year | 8.4 | (11) | |
Components of the amounts recognized in the Consolidated Balance Sheets: | |||
Current assets | 0 | 0 | |
Non-current assets | 8.4 | 0 | |
Current liabilities | 0 | 0 | |
Pension and post-retirement benefits | 0 | 10.9 | |
Components of the amounts recognized in Accumulated other comprehensive loss before the effect of income taxes: | |||
Prior service cost | 0.4 | 0.5 | |
Unrecognized net actuarial (gain) loss | 25.7 | 41.4 | |
Accumulated other comprehensive (gain) loss | $ 26.1 | $ 41.9 |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
United States | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | $ 6.1 | $ 3.9 | $ 0 |
Expected return on plan assets | (8.3) | (7.3) | 0 |
Amortization of prior service costs | (0.1) | 0 | 0 |
Expected administrative expenses | 0.6 | 0.5 | 0 |
Settlement related expenses | (0.6) | (0.1) | 0 |
Amortization of net loss/(gain) | 0 | 0 | 0 |
Net periodic benefit (income) cost | (2.3) | (3) | 0 |
International | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Expected administrative expenses | 0 | ||
International | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | 3.1 | 2.4 | 2.2 |
Expected return on plan assets | (4.7) | (5.1) | (4.6) |
Amortization of prior service costs | 0.1 | 0.1 | 0.1 |
Expected administrative expenses | 0 | 0 | 0 |
Settlement related expenses | 0 | 0 | 0 |
Amortization of net loss/(gain) | 2.2 | 4.5 | 5.3 |
Net periodic benefit (income) cost | $ 0.7 | $ 1.9 | $ 3 |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
United States | ||
Defined Benefit Plan Disclosure | ||
Net actuarial (gain) loss | $ (2.2) | $ (2.9) |
Net amortization | 0.1 | 0.1 |
Settlement charge | 0.6 | 0 |
Total recognized in other comprehensive loss | (1.5) | (2.8) |
International | ||
Defined Benefit Plan Disclosure | ||
Net actuarial (gain) loss | (12.4) | (10) |
Net amortization | (3.4) | (10.6) |
Settlement charge | 0 | 0 |
Total recognized in other comprehensive loss | $ (15.8) | $ (20.6) |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Assumptions Used (Details) - Pension Plan | 12 Months Ended | ||||||||
Jun. 03, 2023 | Mar. 04, 2023 | May 28, 2022 | Feb. 26, 2022 | Nov. 27, 2021 | Aug. 28, 2021 | Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
United States | |||||||||
Weighted-average assumptions used in the determination of net periodic benefit cost: | |||||||||
Discount rate (percent) | 2.90% | 0% | |||||||
Compensation increase rate | 0% | ||||||||
Expected return on plan assets | 6.80% | 5.10% | 0% | ||||||
Weighted-average assumptions used in the determination of the projected benefit obligations: | |||||||||
Discount rate | 5.17% | 4.40% | 5.17% | 4.40% | 0% | ||||
Compensation increase rate | 0% | ||||||||
International | |||||||||
Weighted-average assumptions used in the determination of net periodic benefit cost: | |||||||||
Discount rate (percent) | 5.18% | 4.40% | 3.52% | 3% | 2.89% | 3.33% | 1.99% | 1.66% | |
Compensation increase rate | 4.45% | 3.20% | 2.75% | ||||||
Expected return on plan assets | 4.80% | 4.80% | 4.80% | ||||||
Weighted-average assumptions used in the determination of the projected benefit obligations: | |||||||||
Discount rate | 5.34% | 3.33% | 5.34% | 3.33% | 1.99% | ||||
Compensation increase rate | 3% | 4.45% | 3% | 4.45% | 3.20% |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Fair Value and Allocation of Plan Assets (Details) - Pension Plan - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 | May 29, 2021 |
United States | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 100% | 100% | |
Percentage of Plan Assets at Year End | 100% | 100% | |
Fair value of plan assets | $ 126.3 | $ 144 | $ 0 |
United States | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 2.1 | 2.4 | |
United States | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 124.2 | $ 141.6 | |
United States | Fixed income | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 70% | 46% | |
Percentage of Plan Assets at Year End | 70% | 45% | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 2.1 | $ 2.4 | |
United States | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 2.1 | 2.4 | |
United States | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
United States | U.S. government securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 17.5 | 10.3 | |
United States | U.S. government securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
United States | U.S. government securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 17.5 | 10.3 | |
United States | Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 68.8 | ||
United States | Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
United States | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 68.8 | ||
United States | Foreign government obligations | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 51.8 | ||
United States | Foreign government obligations | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
United States | Foreign government obligations | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 51.8 | ||
United States | Common collective trusts-balanced | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 30% | 54% | |
Percentage of Plan Assets at Year End | 30% | 55% | |
Fair value of plan assets | $ 37.9 | $ 79.5 | |
United States | Common collective trusts-balanced | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
United States | Common collective trusts-balanced | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 37.9 | $ 79.5 | |
International | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 100% | 100% | |
Percentage of Plan Assets at Year End | 100% | 100% | |
Fair value of plan assets | $ 84.4 | $ 93.5 | $ 109.9 |
International | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 5.6 | 4.5 | |
International | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 78.8 | $ 89 | |
International | Fixed income | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 33% | 33% | |
Percentage of Plan Assets at Year End | 38% | 36% | |
International | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 5.6 | $ 4.5 | |
International | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 5.6 | 4.5 | |
International | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
International | Foreign government obligations | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 26.1 | 29.3 | |
International | Foreign government obligations | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
International | Foreign government obligations | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 26.1 | $ 29.3 | |
International | Common collective trusts-balanced | |||
Defined Benefit Plan Disclosure | |||
Targeted Asset Allocation Percentage | 67% | 67% | |
Percentage of Plan Assets at Year End | 62% | 64% | |
Fair value of plan assets | $ 52.7 | $ 59.7 | |
International | Common collective trusts-balanced | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
International | Common collective trusts-balanced | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 52.7 | $ 59.7 |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) - Pension Plan $ in Millions | Jun. 03, 2023 USD ($) |
United States | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2024 | $ 8.4 |
2025 | 9.5 |
2026 | 9.8 |
2027 | 9.8 |
2028 | 9.6 |
2029-2033 | 45.1 |
International | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
2024 | 2.8 |
2025 | 3.2 |
2026 | 3.1 |
2027 | 5.1 |
2028 | 3.9 |
2029-2033 | $ 24.8 |
Common Stock and Per Share In_3
Common Stock and Per Share Information - Schedule of Calculation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Numerator: | |||
Numerator for both basic and diluted EPS, Net (loss) earnings attributable to MillerKnoll, Inc. | $ 42.1 | $ (27.1) | $ 174.6 |
Denominator: | |||
Denominator for basic EPS, weighted-average common shares outstanding (in shares) | 75,478,000 | 73,160,212 | 58,931,268 |
Potentially dilutive shares resulting from stock plans (in shares) | 546,368 | 0 | 458,330 |
Denominator for diluted EPS (in shares) | 76,024,368 | 73,160,212 | 59,389,598 |
Common Stock and Per Share In_4
Common Stock and Per Share Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation (in shares) | 2,119,223 | 1,245,988 | 207,365 |
Share repurchase authorization | 250,000,000 | ||
Shares available for purchase under the plan | $ 204.5 | ||
Stock repurchased and retired (shares) | 575,207 | 390,010 | 38,931 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 12 Months Ended | 17 Months Ended | |||
Jul. 19, 2021 | Jun. 03, 2023 USD ($) $ / shares shares | May 28, 2022 USD ($) $ / shares shares | May 29, 2021 USD ($) $ / shares shares | Jun. 03, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation cost not yet recognized | $ | $ 11,500,000 | $ 11,500,000 | |||
Weighted-average period over which this amount is expected to be recognized (in years) | 10 months 24 days | ||||
Employee stock purchase plan issuances (shares) | 185,551 | 87,562 | 71,468 | ||
Cash received from the exercise of stock options | $ | $ 1,000,000 | ||||
IRS statutory compensation ceiling | $ | $ 330,000 | ||||
Knoll Inc. 2020 Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares available for issuance ( in shares) | 3,327,940 | 3,327,940 | |||
Executive Equalization Retirement Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Cash awards granted (percent) | 50% | ||||
Percentage of incentive cash bonus | 100% | ||||
Employee stock purchase program | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares authorized for issuance (in shares) | 8,164,945 | 8,164,945 | |||
Reserved for purchase by plan participants (percentage) | 85% | 85% | |||
Employee stock purchase program | Miller Knoll Inc. Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares authorized for issuance (in shares) | 3,666,018 | 3,666,018 | |||
Shares available for issuance ( in shares) | 246,338 | 246,338 | |||
Employee stock purchase program | Knoll Inc. 2020 Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares authorized for issuance (in shares) | 7,182,670 | 7,182,670 | |||
Employee stock purchase program | Knoll Inc. 2021 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of shares authorized for issuance (in shares) | 982,275 | 982,275 | |||
Shares available for issuance ( in shares) | 530,684 | 530,684 | |||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Weighted-average period over which this amount is expected to be recognized (in years) | 6 months 14 days | ||||
Intrinsic value of options exercised | $ | $ 400,000 | $ 1,800,000 | $ 500,000 | ||
Stock options | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting period (in years) | 1 year | ||||
Expiration period (in years) | 10 years | ||||
Conversion ratio to common stock | 1 | ||||
Director fees to be paid in form of equity (percent) | 50% | ||||
Stock options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting period (in years) | 1 year | ||||
Stock options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Vesting period (in years) | 3 years | ||||
Expiration period (in years) | 10 years | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Weighted-average period over which this amount is expected to be recognized (in years) | 1 year 1 month 6 days | ||||
Vesting period (in years) | 3 years | 3 years | |||
Conversion ratio to common stock | 1 | 1 | |||
Fair value of the shares that vested | $ | $ 6,000,000 | ||||
Share-based payment arrangement, cash used to settle award | $ | $ 60,000 | ||||
Granted (in usd per share) | $ / shares | $ 27.76 | $ 44.25 | $ 26.71 | ||
Weighted-average fair value of restricted stock awards granted (in usd per share) | $ / shares | $ 31.83 | $ 37.33 | $ 31.83 | ||
Granted (in shares) | 406,720 | ||||
Deferred stock units outstanding (shares) | 684,341 | 576,382 | 684,341 | ||
Restricted stock units | After year one | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Graded vesting (percent) | 25% | ||||
Restricted stock units | After year two | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Graded vesting (percent) | 25% | ||||
Restricted stock units | After year three | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Graded vesting (percent) | 50% | ||||
Restricted stock units | Knoll Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based payment arrangement, cash used to settle award | $ | $ 74,000 | ||||
Performance share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Weighted-average period over which this amount is expected to be recognized (in years) | 8 months 4 days | ||||
Expiration period (in years) | 5 years | 3 years | |||
Conversion ratio to common stock | 1 | 1 | |||
Granted (in usd per share) | $ / shares | $ 27.30 | $ 43.06 | $ 37.21 | ||
Total market value of shares released in period | $ | $ 167,000 | ||||
Additional shares vested in period (in shares) | 0 | ||||
Accrued cash dividends on the underlying shares of outstanding | $ | $ 200,000 | ||||
Weighted-average fair value of restricted stock awards granted (in usd per share) | $ / shares | $ 34.41 | $ 42.75 | $ 34.41 | ||
Granted (in shares) | 172,645 | ||||
Deferred stock units outstanding (shares) | 350,971 | 364,087 | 350,971 | ||
Restricted stock awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Weighted-average period over which this amount is expected to be recognized (in years) | 8 months 12 days | ||||
Vesting period (in years) | 3 years | ||||
Conversion ratio to common stock | 1 | ||||
Fair value of the shares that vested | $ | $ 3,700,000 | ||||
Share-based payment arrangement, cash used to settle award | $ | $ 60,000 | ||||
Granted (in usd per share) | $ / shares | $ 0 | ||||
Accelerated vesting, number of shares | 500,000 | ||||
Weighted-average fair value of restricted stock awards granted (in usd per share) | $ / shares | $ 44.36 | $ 44.36 | $ 44.36 | ||
Granted (in shares) | 0 | 0 | |||
Deferred stock units outstanding (shares) | 34,743 | 219,989 | 34,743 | ||
Restricted stock awards | Knoll Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based payment arrangement, cash used to settle award | $ | $ 400,000 | ||||
Deferred stock units | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Fair value of the shares that vested | $ | $ 600,000 | ||||
Granted (in usd per share) | $ / shares | $ 22.73 | $ 37.34 | |||
Granted (in shares) | 25,230 | 15,664 | |||
Deferred stock units outstanding (shares) | 41,824 | 41,824 | |||
Deferred stock units, vested, aggregate intrinsic fair value | $ | $ 600,000 | $ 600,000 |
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. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 20.2 | $ 31.4 | $ 9 |
Tax benefit | 4.9 | 7.7 | 2 |
Employee stock purchase program | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 0.5 | 0.5 | 0.4 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 5.7 | 3.6 | 3.7 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 9.4 | 15.3 | 4.1 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | 3.5 | 2.8 | 0.8 |
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation | $ 1.1 | $ 9.2 | $ 0 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details) - $ / shares | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Granted with exercise prices equal to the fair market value of the stock on the date of grant | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant-date fair value of stock options (usd per share) | $ 9.43 | $ 6.10 | |
Granted with exercise prices greater than the fair market value of the stock on the date of grant | Hull-White I | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant-date fair value of stock options (usd per share) | $ 5.74 | ||
Granted with exercise prices greater than the fair market value of the stock on the date of grant | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant-date fair value of stock options (usd per share) | $ 5.62 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected volatility | 90% | ||
Weighted average volatility rate | 10% | ||
Number of days preceding grant date | 90 days | ||
Stock options | Hull-White I | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 2.91% | ||
Hull-White I barrier (usd per share) | 1.36 | ||
Expected volatility | 37.09% | ||
Dividend yield | 2.52% | ||
Conservative post-vest cancel rate | 0 | ||
Stock options | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 3.01% | 47% | |
Expected term of options | 3 years 4 months 24 days | 3 years 3 months 18 days | |
Expected volatility | 51.58% | 49.03% | |
Dividend yield | 2.50% | 1.64% | 1.99% |
Minimum | Granted with exercise prices equal to the fair market value of the stock on the date of grant | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant-date fair value of stock options (usd per share) | $ 13.87 | ||
Minimum | Stock options | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 0.23% | ||
Expected term of options | 3 years 9 months 18 days | ||
Expected volatility | 43% | ||
Maximum | Granted with exercise prices equal to the fair market value of the stock on the date of grant | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant-date fair value of stock options (usd per share) | $ 14.36 | ||
Maximum | Stock options | Black-Scholes | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free interest rate | 0.25% | ||
Expected term of options | 4 years 1 month 6 days | ||
Expected volatility | 44% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock Option Plan Transactions (Details) - Employee stock option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,716,593 | |
Granted (in shares) | 544,299 | |
Exercises (in shares) | (49,482) | |
Forfeited or expired (in shares) | (7,210) | |
Outstanding at end of period (in shares) | 2,204,200 | 1,716,593 |
Exercisable at end of period (in shares) | 1,088,713 | |
Weighted-Average Exercise Prices | ||
Outstanding at beginning of period (in usd per share) | $ 26.83 | |
Granted at market (in usd per share) | 32.25 | |
Exercises (in usd per share) | 20.44 | |
Forfeited or expired (in usd per share) | 22.86 | |
Outstanding at end of period (in usd per share) | 28.33 | $ 26.83 |
Exercisable at end of period (in usd per share) | $ 26.57 | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value at end of period (in millions of usd) | $ 0 | $ 10.4 |
Exercisable at end of period | $ 0 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Weighted average remaining contractual term at end of period (in years) | 7 years 3 months 18 days | 7 years 8 months 12 days |
Exercisable at end of period | 6 years 6 months |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Restricted Stock Unit (RSU) Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Restricted stock units | |||
Share-based Compensation Arrangements by Share-based Payment Award [Roll Forward] | |||
Beginning balance (in shares) | 576,382 | ||
Granted (in shares) | 406,720 | ||
Forfeited (in shares) | (79,027) | ||
Released (in shares) | (219,734) | ||
Ending balance (in shares) | 684,341 | 576,382 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding, at beginning of year (in usd per share) | $ 37.33 | ||
Granted (in usd per share) | 27.76 | $ 44.25 | $ 26.71 |
Forfeited (in usd per share) | 33.54 | ||
Released (in usd per share) | 38.46 | ||
Outstanding, at end of year (in usd per share) | $ 31.83 | $ 37.33 | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value (in millions) | $ 9.9 | $ 17.8 | |
Weighted-Average Remaining Contractual Term | |||
Weighted average remaining contractual term (years) | 1 year | 1 year 1 month 6 days | |
Restricted stock awards | |||
Share-based Compensation Arrangements by Share-based Payment Award [Roll Forward] | |||
Beginning balance (in shares) | 219,989 | ||
Granted (in shares) | 0 | 0 | |
Forfeited (in shares) | (39,839) | ||
Released (in shares) | (145,407) | ||
Ending balance (in shares) | 34,743 | 219,989 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding, at beginning of year (in usd per share) | $ 44.36 | ||
Granted (in usd per share) | 0 | ||
Forfeited (in usd per share) | 44.18 | ||
Released (in usd per share) | 44.35 | ||
Outstanding, at end of year (in usd per share) | $ 44.36 | $ 44.36 |
Stock-Based Compensation - Sc_5
Stock-Based Compensation - Schedule of Performance-based Stock Units (PSU) Activity (Details) - Performance share units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Share-based Compensation Arrangements by Share-based Payment Award [Roll Forward] | |||
Beginning balance (in shares) | 364,087 | ||
Granted (in shares) | 172,645 | ||
Forfeited (in shares) | 179,631 | ||
Released (in shares) | (6,130) | ||
Ending balance (in shares) | 350,971 | 364,087 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding, at beginning of year (in usd per share) | $ 42.75 | ||
Granted (in usd per share) | 27.30 | $ 43.06 | $ 37.21 |
Forfeited (in usd per share) | 44.70 | ||
Released (in usd per share) | 31.23 | ||
Outstanding, at end of year (in usd per share) | $ 34.41 | $ 42.75 | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value (in millions) | $ 5.2 | $ 11.3 | |
Weighted-Average Remaining Contractual Term | |||
Weighted average remaining contractual term (years) | 1 year 2 months 12 days | 10 months 24 days |
Stock-Based Compensation - Sc_6
Stock-Based Compensation - Schedule of Director Share Based Compensation (Details) - Director - shares | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares of common stock (in shares) | 27,785 | 23,255 | 3,013 |
Stock options (in shares) | 0 | 0 | 0 |
Deferred stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Deferred stock units pursuant to the Director Plan (in shares) | 25,230 | 15,664 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (90.3) | $ (142.4) | $ 135.1 |
Foreign | 141.7 | 133.8 | 93.2 |
Earnings (loss) before income taxes and equity income | $ 51.4 | $ (8.6) | $ 228.3 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic - Federal | $ 4.2 | $ (3.8) | $ 13.2 |
Domestic - State | 2.2 | 0.2 | 5.2 |
Foreign | 42.3 | 38.1 | 22.8 |
Current income tax expense (benefit) | 48.7 | 34.5 | 41.2 |
Domestic - Federal | (32.5) | (12.2) | 10.4 |
Domestic - State | (4.4) | (5) | 1.4 |
Foreign | (7.3) | (6.2) | (4.7) |
Deferred income tax expense (benefit) | (44.2) | (23.4) | 7.1 |
Income tax expense | $ 4.5 | $ 11.1 | $ 48.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
Tax Carryforward | ||
Effective tax rate (percent) | 21% | |
State and local tax net operating loss carryforwards and credits | $ 4.7 | $ 7.2 |
Federal net operating loss carryforward | 5.2 | 3.6 |
Deferred tax assets | 231.2 | 213.1 |
Deferred tax asset valuation allowance | 12.7 | 11.7 |
Foreign tax net operating loss carryforwards and credits | 14.2 | $ 15.9 |
Foreign cash intended to be repatriated | 169.4 | |
Undistributed earnings of foreign subsidiaries | 5.8 | |
State And Local Jurisdiction | ||
Tax Carryforward | ||
Operating loss carryforwards | 67.7 | |
State and local tax net operating loss carryforwards and credits | 4.1 | |
State credits | 0.6 | |
Valuation allowance | 0.7 | |
Internal Revenue Service (IRS) | ||
Tax Carryforward | ||
Operating loss carryforwards | 24.6 | |
Federal net operating loss carryforward | 5.2 | |
Foreign Tax Authority | ||
Tax Carryforward | ||
Operating loss carryforwards | 52.6 | |
State credits | 0.7 | |
Valuation allowance | 11 | |
Deferred tax asset valuation allowance | 0.7 | |
Foreign tax net operating loss carryforwards and credits | 13.5 | |
Foreign deferred assets | 2.6 | |
Foreign deferred assets tax benefit | 0.7 | |
Undistributed earnings of foreign subsidiaries | $ 282.2 | |
Minimum | State And Local Jurisdiction | ||
Tax Carryforward | ||
State and local tax net operating loss carryforwards expiration period | 1 year | |
State tax benefits expiration period | 2 years | |
Minimum | Internal Revenue Service (IRS) | ||
Tax Carryforward | ||
State and local tax net operating loss carryforwards expiration period | 6 years | |
Minimum | Foreign Tax Authority | ||
Tax Carryforward | ||
State and local tax net operating loss carryforwards expiration period | 5 years | |
State tax benefits expiration period | 8 years | |
Maximum | State And Local Jurisdiction | ||
Tax Carryforward | ||
State tax benefits expiration period | 5 years | |
Maximum | Foreign Tax Authority | ||
Tax Carryforward | ||
State tax benefits expiration period | 10 years | |
Internal Revenue Service (IRS) | ||
Tax Carryforward | ||
Deferred tax assets | $ 1.3 | |
Deferred tax asset tax benefit | 0.3 | |
Deferred tax asset valuation allowance | $ 0.3 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at the United States Statutory rate | $ 10.8 | $ (1.8) | $ 47.9 |
State and local income taxes, net of federal income tax benefit | (1) | (4) | 5.6 |
Non-deductible officers' compensation | 0.9 | 5.3 | 0.5 |
Foreign-derived intangible income | (1.7) | 0 | (2.1) |
Foreign-based company income | 5.1 | 3.1 | 2.1 |
Global intangible low-taxed income | 9.4 | 15.2 | 7.9 |
Foreign statutory rate differences | 2.3 | 4.1 | 2.6 |
Research and development incentives | (4) | (4.8) | (3.2) |
Federal return to provision adjustments | (4.1) | (0.6) | (0.4) |
Foreign tax credit | (15.6) | (8.8) | (10.3) |
Foreign withholding taxes and other miscellaneous foreign taxes | 1.2 | 2.4 | 1 |
Change in valuation allowance against deferred tax assets | 1.3 | 0.4 | (2.1) |
Other, net | (0.1) | 0.6 | (1.2) |
Income tax expense | $ 4.5 | $ 11.1 | $ 48.3 |
Effective tax rate (percent) | 8.80% | (130.10%) | 21.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Deferred tax assets: | ||
Compensation-related accruals | $ 15.2 | $ 15.3 |
Capitalized research and experimental costs | 17.6 | 0 |
Accrued pension and post-retirement benefit obligations | 0.4 | 7.1 |
Deferred revenue | 5.6 | 6.9 |
Inventory related | 16.1 | 10 |
Other reserves and accruals | 10.9 | 12.3 |
Warranty | 18 | 17.8 |
State and local tax net operating loss carryforwards and credits | 4.7 | 7.2 |
Federal net operating loss carryforward | 5.2 | 3.6 |
Federal and state nondeductible interest expense carryforward | 7.9 | 1 |
Foreign tax net operating loss carryforwards and credits | 14.2 | 15.9 |
Accrued step rent and tenant reimbursements | 0.7 | 1 |
Lease liability | 109.6 | 109 |
Other | 5.1 | 6 |
Subtotal | 231.2 | 213.1 |
Valuation allowance | (12.7) | (11.7) |
Total | 218.5 | 201.4 |
Deferred tax liabilities: | ||
Book basis in property in excess of tax basis | 64 | 72.3 |
Intangible assets | 196.3 | 206.8 |
Interest rate swap | 14.1 | 8 |
Right of use lease assets | 99.1 | 100.5 |
Withholding taxes on planned repatriation of foreign earnings | 5.8 | 8.3 |
Other | 2.3 | 2.8 |
Total | $ 381.6 | $ 398.7 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 1.6 | $ 2.3 | $ 2.1 |
Increases related to prior year income tax positions | 0.5 | ||
Increases related to current year income tax positions | 0.1 | ||
Decreases related to lapse of applicable statute of limitations | (0.6) | (0.3) | |
Decreases related to settlements | (0.2) | ||
Unrecognized tax benefits, ending balance | $ 1.6 | $ 2.3 |
Income Taxes - Schedule of Un_2
Income Taxes - Schedule of Unrecognized Ta Benefits, Interest, Penalties and Related Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Income Tax Disclosure [Abstract] | |||
Interest and penalty (income) expense | $ (0.2) | $ 0 | $ 0.1 |
Liability for interest and penalties | $ 0.7 | $ 0.9 | $ 0.9 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value | $ 1,414.4 | $ 1,427.9 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Fair value | $ 1,378.2 | $ 1,364.7 |
Fair Value - Schedule of Fair_2
Fair Value - Schedule of Fair Value Assets and Liabilities Measured on a Recurring and Nonrecurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Deferred compensation plan | $ 0 | $ 0 |
Total | 17.3 | 31.8 |
Total | 0 | 0 |
Total | 17.3 | 31.8 |
Total | 0 | 0 |
NAV | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forward contracts - asset | 0 | 0 |
Foreign currency forward contracts - liability | 0 | 0 |
Quoted Prices with Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Deferred compensation plan | 16.3 | 15 |
Total | 17.6 | 15.4 |
Total | 1.8 | 1 |
Total | 17.6 | 15.4 |
Total | 1.8 | 1 |
Quoted Prices with Other Observable Inputs (Level 2) | Foreign currency forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forward contracts - asset | 1.3 | 0.4 |
Foreign currency forward contracts - liability | 1.8 | 1 |
Quoted Prices with Other Observable Inputs (Level 2) | Other Comprehensive Income (Loss) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 59.9 | 31.9 |
Total | 3 | 0 |
Total | 59.9 | 31.9 |
Total | 3 | 0 |
Quoted Prices with Other Observable Inputs (Level 2) | Other Comprehensive Income (Loss) | Interest rate swap agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swap agreement - asset | 59.9 | 31.9 |
Interest rate swap agreement - liability | 3 | 0 |
Money Market Funds | NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | 17.3 | 31.8 |
Money Market Funds | Quoted Prices with Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Money market funds | $ 0 | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Feb. 28, 2023 USD ($) | Jun. 03, 2023 USD ($) | May 28, 2022 USD ($) | May 29, 2021 USD ($) | Jun. 03, 2023 GBP (£) | Mar. 03, 2023 | Feb. 03, 2023 | Jan. 31, 2023 | May 28, 2022 GBP (£) | Jan. 31, 2022 USD ($) | Dec. 02, 2019 | Jan. 03, 2018 | Jun. 30, 2017 USD ($) | Sep. 30, 2016 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative liability notional amount | $ 99,500,000 | $ 54,100,000 | ||||||||||||
Derivative asset notional amount | £ | £ 7.5 | £ 43.1 | ||||||||||||
Gain (loss) recognized for hedge ineffectiveness | 0 | 0 | $ 0 | |||||||||||
Reclassification (loss) gain | (14,300,000) | $ 6,900,000 | $ 4,500,000 | |||||||||||
Pre-tax gain (loss) expected to be reclassified | 28,200,000 | |||||||||||||
Gain (loss) expected to be reclassified | $ 21,100,000 | |||||||||||||
HAY A/S | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Remaining equity that can be purchased (percent) | 33% | 33% | ||||||||||||
HAY A/S | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Outstanding equity interest acquired (percent) | 34% | |||||||||||||
Ownership interest (percent) | 67% | |||||||||||||
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative term | 30 days | |||||||||||||
Interest rate swap agreement | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative asset notional amount | $ 150,000,000 | $ 575,000,000 | $ 75,000,000 | $ 150,000,000 | ||||||||||
January 2022 Interest Rate Swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative asset notional amount | $ 575,000,000 | |||||||||||||
Derivative, fixed interest rate | 1.65% | 1.65% | 1.65% | 1.689% | ||||||||||
March 2023 Interest Rate Swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative asset notional amount | $ 150,000,000 | |||||||||||||
Derivative, fixed interest rate | 3.95% | 3.95% | 3.95% | |||||||||||
March 2023 Interest Rate Swap | SOFR | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Variable rate | 0.11448% | 0.11448% | ||||||||||||
March 2023 Interest Rate Swap | Fixed Interest Rate Adjustment | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Variable rate | 0.11448% | |||||||||||||
September 2016 Interest Rate Swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative asset notional amount | $ 150,000,000 | |||||||||||||
Derivative, fixed interest rate | 1.91% | 1.91% | 1.91% | 1.949% | ||||||||||
June 2017 Interest Rate Swap | ||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||||||||||||
Derivative asset notional amount | $ 75,000,000 | |||||||||||||
Derivative, fixed interest rate | 2.348% | 2.348% | 2.348% | 2.387% |
Fair Value - Schedule of Intere
Fair Value - Schedule of Interest Rate Derivatives (Details) £ in Millions, $ in Millions | Jun. 03, 2023 GBP (£) | Jun. 03, 2023 USD ($) | Mar. 03, 2023 | Feb. 03, 2023 | Jan. 31, 2023 | May 28, 2022 GBP (£) | Jan. 31, 2022 | Jan. 03, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional Amount | £ | £ 7.5 | £ 43.1 | ||||||
September 2016 Interest Rate Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional Amount | $ 150 | |||||||
Effective Fixed Interest Rate | 1.91% | 1.91% | 1.91% | 1.949% | ||||
June 2017 Interest Rate Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional Amount | $ 75 | |||||||
Effective Fixed Interest Rate | 2.348% | 2.348% | 2.348% | 2.387% | ||||
January 2022 Interest Rate Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional Amount | $ 575 | |||||||
Effective Fixed Interest Rate | 1.65% | 1.65% | 1.65% | 1.689% | ||||
March 2023 Interest Rate Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Notional Amount | $ 150 | |||||||
Effective Fixed Interest Rate | 3.95% | 3.95% | 3.95% |
Fair Value - Schedule of Deriva
Fair Value - Schedule of Derivative Instruments in Statement of Financial Position (Details) - Fair Value, Recurring - Quoted Prices with Other Observable Inputs (Level 2) - Foreign Exchange Forward - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency forward contracts - asset | $ 1.3 | $ 0.4 |
Foreign currency forward contracts - liability | $ 1.8 | $ 1 |
Fair Value - Schedule of Deri_2
Fair Value - Schedule of Derivative Instruments, Gain (loss) in Statement of Financial Performance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Forward Contracts | Other Expense Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency transaction net ( loss) | $ 4.8 | $ 3.3 | $ 0.8 |
Fair Value - Schedule of Redeem
Fair Value - Schedule of Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Beginning Balance | $ 106.9 | ||
Redemption value adjustment | $ (15) | ||
Net earnings attributable to redeemable noncontrolling interests | 4 | $ 7.4 | $ 5.7 |
Ending Balance | 107.6 | 106.9 | |
HAY | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Beginning Balance | 106.9 | ||
Dividend attributable to redeemable noncontrolling interests | (4.9) | ||
Redemption value adjustment | 1.9 | ||
Net earnings attributable to redeemable noncontrolling interests | 4 | ||
Foreign currency translation adjustments | (0.3) | ||
Ending Balance | $ 107.6 | $ 106.9 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Accrued Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Accrual balance, beginning | $ 73.2 | $ 60.1 | $ 59.2 |
Accrual for warranty matters | 24.6 | 16.6 | 12.8 |
Settlements and adjustments | (23.9) | (18.6) | (11.9) |
Acquired through business acquisition | 0 | 15.1 | 0 |
Accrual balance, ending | $ 73.9 | $ 73.2 | $ 60.1 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Jun. 03, 2023 | May 28, 2022 | |
Outstanding commitments for purchase obligations | $ 91,400,000 | |
Performance Guarantee | ||
Maximum financial exposure | 8,900,000 | |
Guarantor obligation liability | 0 | $ 0 |
Financial Standby Letter of Credit | ||
Maximum financial exposure | 14,100,000 | |
Guarantor obligation liability | $ 0 | $ 0 |
Minimum | Performance Guarantee | ||
Term of guarantee arrangements | 1 year | |
Maximum | Performance Guarantee | ||
Term of guarantee arrangements | 3 years |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 12 Months Ended |
Jun. 03, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Operating Segments - Schedule o
Operating Segments - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Segment Reporting Information | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Depreciation and amortization | 155.1 | 190.6 | 87.2 |
Operating earnings (loss) | 122.3 | 39.8 | 232.5 |
Capital expenditures | 83.3 | 94.7 | 59.8 |
Goodwill | 1,221.7 | 1,226.2 | 364.2 |
Corporate | |||
Segment Reporting Information | |||
Depreciation and amortization | 0 | 0 | 0 |
Operating earnings (loss) | (60.4) | (140.6) | (52.3) |
Americas Contract | |||
Segment Reporting Information | |||
Goodwill | 528.4 | 530.1 | 160.7 |
Americas Contract | Operating segments | |||
Segment Reporting Information | |||
Net sales | 2,026.1 | 1,929.1 | 1,234.6 |
Depreciation and amortization | 87.7 | 104.5 | 48.4 |
Operating earnings (loss) | 99.6 | (24) | 97.2 |
Capital expenditures | 52.4 | 52.5 | 40.8 |
International Contract and Specialty | |||
Segment Reporting Information | |||
Net sales | 1,017.3 | 928.5 | |
Goodwill | 303 | 304.3 | 111.2 |
International Contract and Specialty | Operating segments | |||
Segment Reporting Information | |||
Net sales | 1,017.3 | 928.5 | 479.6 |
Depreciation and amortization | 33.4 | 52.3 | 20.2 |
Operating earnings (loss) | 98.6 | 69.9 | 49.4 |
Capital expenditures | 15.6 | 17.8 | 11.3 |
Global Retail | |||
Segment Reporting Information | |||
Goodwill | 390.3 | 391.8 | 92.3 |
Global Retail | Operating segments | |||
Segment Reporting Information | |||
Net sales | 1,043.7 | 1,088.4 | 750.9 |
Depreciation and amortization | 34 | 33.8 | 18.6 |
Operating earnings (loss) | (15.5) | 134.5 | 138.2 |
Capital expenditures | $ 15.3 | $ 24.4 | $ 7.7 |
Operating Segments - Revenue fr
Operating Segments - Revenue from External Customers by Products and Services (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Revenue from External Customer | |||
Net sales | $ 4,087.1 | $ 3,946 | $ 2,465.1 |
Workplace | |||
Revenue from External Customer | |||
Net sales | 1,559.7 | 1,484.4 | 855.1 |
Performance Seating | |||
Revenue from External Customer | |||
Net sales | 900.7 | 942.8 | 778.3 |
Lifestyle | |||
Revenue from External Customer | |||
Net sales | 1,400 | 1,286.6 | 696.2 |
Other | |||
Revenue from External Customer | |||
Net sales | $ 226.7 | $ 232.2 | $ 135.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | $ 1,427,100 | $ 860,500 | $ 652,400 |
Net current period other comprehensive income | 12,000 | (42,000) | 68,900 |
Balance at end of period | 1,432,600 | 1,427,100 | 860,500 |
Cumulative Translation Adjustments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | (93,900) | (3,900) | (56,000) |
Other comprehensive (loss) before reclassifications | (20,100) | (90,000) | 52,100 |
Balance at end of period | (114,000) | (93,900) | (3,900) |
Pension and Other Post-Retirement Benefit Plans | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | (36,900) | (50,400) | (59,200) |
Other comprehensive (loss) before reclassifications | 14,800 | 13,500 | 5,300 |
Reclassification from accumulated other comprehensive income - Other, net | 2,700 | 4,400 | 5,500 |
Tax expense | (4,400) | (4,400) | (2,000) |
Net reclassifications | (1,700) | 0 | 3,500 |
Net current period other comprehensive income | 13,100 | 13,500 | 8,800 |
Balance at end of period | (23,800) | (36,900) | (50,400) |
Other comprehensive income (loss) before reclassifications, tax | (3,500) | (20) | (30) |
Interest Rate Swap Agreement | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 23,700 | (10,800) | (18,900) |
Other comprehensive (loss) before reclassifications | 4,700 | 41,400 | 12,600 |
Reclassification from accumulated other comprehensive income - Other, net | 14,300 | (6,900) | (4,500) |
Net reclassifications | 14,300 | (6,900) | (4,500) |
Net current period other comprehensive income | 19,000 | 34,500 | 8,100 |
Balance at end of period | 42,700 | 23,700 | (10,800) |
Other comprehensive income (loss) before reclassifications, tax | (6,200) | (11,600) | (2,600) |
Unrealized Gains on Securities | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 0 | 0 | 100 |
Other comprehensive (loss) before reclassifications | 0 | 0 | (100) |
Balance at end of period | 0 | 0 | 0 |
Accumulated Other Comprehensive (Loss) Income | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | (107,100) | (65,100) | (134,000) |
Net current period other comprehensive income | 12,000 | (42,000) | 68,900 |
Balance at end of period | $ (95,100) | $ (107,100) | $ (65,100) |
Restructuring and Integration_3
Restructuring and Integration Expense - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 34.4 | $ 0 | $ 2.7 |
Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 18 | 107.9 | |
Knoll Integration | Severance and Employee Benefit | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 3.6 | 51.1 | |
Knoll Integration | Non-Cash Asset Impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 5.9 | 15.5 | |
Knoll Integration | Other Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 8.5 | 27.9 | |
Knoll Integration | Non Cash Debt Extinguishment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 13.4 | ||
2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 34 | $ 0 | |
2023 Restructuring Plan | Severance and Employee Benefit | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 27.9 | ||
2023 Restructuring Plan | Non-Cash Asset Impairments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 6.1 | ||
2023 Restructuring Plan | Exit and Disposal Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 6.1 | ||
Minimum | 2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Projected annualized expense reduction | 30 | ||
Maximum | Knoll Integration | Knoll | |||
Restructuring Cost and Reserve [Line Items] | |||
Future restructuring costs expected | 140 | ||
Maximum | 2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Projected annualized expense reduction | $ 35 |
Restructuring and Integration_4
Restructuring and Integration Expense - Schedule of Severance and Employee Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Integration Costs | $ 34.4 | $ 0 | $ 2.7 |
Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Integration Costs | 18 | 107.9 | |
Knoll Integration | Severance and Employee Benefit | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 1.4 | ||
Integration Costs | 3.6 | 51.1 | |
Amounts Paid | (2.3) | ||
Non-cash costs | 0.2 | ||
Ending balance | 2.9 | 1.4 | |
Knoll Integration | Exit and Disposal Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 0 | ||
Integration Costs | 5.9 | ||
Amounts Paid | (5.9) | ||
Non-cash costs | 0 | ||
Ending balance | 0 | 0 | |
Knoll Integration | Severance And Employee Benefits And Exit And Disposal Activities | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning balance | 1.4 | ||
Integration Costs | 9.5 | ||
Amounts Paid | (8.2) | ||
Non-cash costs | 0.2 | ||
Ending balance | $ 2.9 | $ 1.4 |
Restructuring and Integration_5
Restructuring and Integration Expense - Schedule of Restructuring Expenses by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 34.4 | $ 0 | $ 2.7 |
Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 18 | 107.9 | |
2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 34 | 0 | |
Americas Contract | Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 9.7 | 21.9 | |
Americas Contract | 2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 22.8 | 0 | |
International Contract and Specialty | Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 2.5 | 0 | |
International Contract and Specialty | 2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 1.3 | 0 | |
Global Retail | Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 0.2 | 0 | |
Global Retail | 2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 9.9 | 0 | |
Corporate | Knoll Integration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 5.6 | 86 | |
Corporate | 2023 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 0 | $ 0 |
Restructuring and Integration_6
Restructuring and Integration Expense - Schedule of Restructuring Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring expenses | $ 34.4 | $ 0 | $ 2.7 |
2023 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring expenses | 34 | 0 | |
Amounts Paid | (26.7) | ||
Ending Balance | (7.3) | 0 | |
2023 Restructuring Plan | Severance and Employee Benefit | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring expenses | 27.9 | ||
Amounts Paid | (20.6) | ||
Ending Balance | (7.3) | 0 | |
2023 Restructuring Plan | Exit and Disposal Activities | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | ||
Restructuring expenses | 6.1 | ||
Amounts Paid | (6.1) | ||
Ending Balance | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 03, 2023 | May 28, 2022 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Carrying amounts of long term notes receivable | $ 6.3 | $ 1.2 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 03, 2023 | May 28, 2022 | May 29, 2021 | |
Accounts receivable allowances - uncollectible accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 8.6 | $ 4.8 | $ 4.3 |
Charges to expenses or net sales | 0.5 | 1.3 | 1.7 |
Charges to other accounts | 0 | 4.7 | 0 |
Deductions | (3) | (2.2) | (1.2) |
Balance at end of period | 6.1 | 8.6 | 4.8 |
Accounts receivable allowances - credit memo | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 1.1 | 0.7 | 0.1 |
Charges to expenses or net sales | (0.8) | 0.4 | 0 |
Charges to other accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0.6 |
Balance at end of period | 0.3 | 1.1 | 0.7 |
Allowance for possible losses on notes receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 0 | 0.3 | |
Charges to expenses or net sales | (0.3) | ||
Charges to other accounts | 0 | ||
Deductions | 0 | ||
Balance at end of period | 0 | ||
Valuation allowance for deferred tax asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 11.7 | 8.9 | 10.6 |
Charges to expenses or net sales | 1.3 | 0.4 | (2.3) |
Charges to other accounts | 0 | 0 | 0 |
Deductions | (0.3) | 2.4 | 0.6 |
Balance at end of period | $ 12.7 | $ 11.7 | $ 8.9 |