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Operating Segments
 12 Months Ended
Jun. 01, 2013
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Reporting Disclosure [Text Block]
Operating Segments

The North American Furniture Solutions reportable segment includes the operations associated with the design, manufacture, and sale of furniture products for work-related settings, including office, education, and healthcare environments, throughout the United States and Canada. The North American Furniture Solutions reportable segment is the aggregation of two operating segments. In addition, the company has determined that both operating segments within the North American Furniture Solutions reportable segment each represent reporting units.

The Non-North American Furniture Solutions reportable segment includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings outside of North America and within Mexico.

The Specialty and Consumer reportable segment includes the operations associated with the design, manufacture, and sale of high-end furniture products and textiles including Geiger wood products, Maharam textiles, Herman Miller Collection products and the company's North American consumer retail business.

The company also reports a “Corporate” category consisting primarily of unallocated corporate expenses including restructuring and impairment expenses.

The performance of the operating segments is evaluated by the company's management using various financial measures. The following is a summary of certain key financial measures for the respective fiscal years indicated:
(In millions)
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
North American Furniture Solutions
 
$
1,221.9

 
$
1,218.5

 
$
1,224.8

Non-North American Furniture Solutions
 
377.3

 
347.3

 
290.4

Specialty and Consumer
 
175.7

 
158.3

 
134.0

Corporate
 
—

 
—

 
—

Total
 
$
1,774.9

 
$
1,724.1

 
$
1,649.2

 
 
 
 
 
 
 
Depreciation and Amortization:
 
 
 
 
 
 
North American Furniture Solutions
 
$
28.0

 
$
31.7

 
$
34.2

Non-North American Furniture Solutions
 
6.6

 
3.7

 
3.1

Specialty and Consumer
 
2.9

 
1.8

 
1.8

Corporate
 
—

 
—

 
—

Total
 
$
37.5

 
$
37.2

 
$
39.1

 
 
 
 
 
 
 
Operating Earnings (Losses):
 
 
 
 
 
 
North American Furniture Solutions
 
$
76.6

 
$
96.9

 
$
99.4

Non-North American Furniture Solutions
 
24.7

 
32.1

 
18.8

Specialty and Consumer
 
15.4

 
15.1

 
10.7

Corporate
 
(1.8
)
 
(6.5
)
 
(5.6
)
Total
 
$
114.9

 
$
137.6

 
$
123.3

 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
North American Furniture Solutions
 
$
33.6

 
$
20.3

 
$
25.9

Non-North American Furniture Solutions
 
15.9

 
3.3

 
4.4

Specialty and Consumer
 
0.7

 
4.9

 
0.2

Corporate
 
—

 
—

 
—

Total
 
$
50.2

 
$
28.5

 
$
30.5

 
 
 
 
 
 
 
Total Assets:
 
 
 
 
 
 
North American Furniture Solutions
 
$
427.8

 
$
389.2

 
$
468.3

Non-North American Furniture Solutions
 
250.9

 
231.5

 
144.8

Specialty and Consumer
 
174.3

 
36.5

 
41.7

Corporate
 
93.5

 
181.9

 
153.2

Total
 
$
946.5

 
$
839.1

 
$
808.0

 
 
 
 
 
 
 
Goodwill:
 
 
 
 
 
 
North American Furniture Solutions
 
$
136.1

 
$
104.9

 
$
104.3

Non-North American Furniture Solutions
 
41.1

 
40.5

 
6.1

Specialty and Consumer
 
49.8

 
1.0

 
—

Corporate
 
—

 
—

 
—

Total
 
$
227.0

 
$
146.4

 
$
110.4



The accounting policies of the reportable operating segments are the same as those of the company. Additionally, the company employs a methodology for allocating corporate costs and assets with the underlying objective of this methodology being to allocate corporate costs according to the relative usage of the underlying resources and to allocate corporate assets according to the relative expected benefit. The majority of the allocations for corporate expenses are based on relative net sales. However, certain corporate costs, generally considered the result of isolated business decisions, are not subject to allocation and are evaluated separately from the rest of the regular ongoing business operations. For example, restructuring and impairment expenses that are reflected in operating earnings are allocated to the “Corporate” category. In addition, cash and cash equivalents and marketable securities are allocated to the “Corporate” category as the company views these as corporate assets.

The restructuring and asset impairment charges of $1.2 million, $5.4 million, and $3.0 million in fiscal 2013, fiscal 2012 and fiscal 2011, respectively are discussed in Note 16 of the Consolidated Financial Statements and were allocated to the “Corporate” category.

The company's product offerings consist primarily of office furniture systems, seating, freestanding furniture, storage and casegoods. These product offerings are marketed, distributed, and managed primarily as a group of similar products on an overall portfolio basis. The following is a summary of net sales by product category for the respective fiscal years indicated. Given that formal product line information is not available for the company as a whole, this summary is intended to represent a reasonable estimate of net sales by product category based on the best information available.
(In millions)
 
2013
 
2012
 
2011
Net Sales:
 
 
 
 
 
 
Systems
 
$
572.9

 
$
549.5

 
$
569.2

Seating
 
609.8

 
619.8

 
567.1

Freestanding and storage
 
395.0

 
334.3

 
326.1

Other (1)
 
197.2

 
220.5

 
186.8

Total
 
$
1,774.9

 
$
1,724.1

 
$
1,649.2



(1) “Other” primarily consists of miscellaneous or otherwise uncategorized product sales and service sales.
 
Sales by geographic area are based on the location of the customer. Long-lived assets consist of long-term assets of the company, excluding financial instruments, deferred tax assets, and long-term intangibles. The following is a summary of geographic information for the respective fiscal years indicated. Individual foreign country information is not provided as none of the individual foreign countries in which the company operates are considered material for separate disclosure based on quantitative and qualitative considerations.
(In millions)
 
2013
 
2012
 
2011
Net Sales:
 
 
 
 
 
 
United States
 
$
1,291.5

 
$
1,271.9

 
$
1,265.9

  International
 
483.4

 
452.2

 
383.3

Total
 
$
1,774.9

 
$
1,724.1

 
$
1,649.2



(In millions)
 
2013
 
2012
 
2011
Long-lived assets:
 
 
 
 
 
 
United States
 
$
169.2

 
$
146.4

 
$
151.6

  International
 
29.8

 
18.1

 
24.0

Total
 
$
199.0

 
$
164.5

 
$
175.6



It is estimated that no single dealer accounted for more than 4.5 percent of the company's net sales in the fiscal year ended June 1, 2013. It is also estimated that the largest single end-user customer, the U.S. federal government, accounted for approximately $114 million or 6 percent of the company's fiscal 2013 net sales within the North American Furniture Solutions reportable segment. The 10 largest customers accounted for approximately 23 percent of net sales.

Approximately 10 percent of the company's employees are covered by collective bargaining agreements, most of whom are employees of its Nemschoff and Herman Miller Limited (U.K.) subsidiaries.