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Operating Segments
 12 Months Ended
May 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure
Operating Segments

The company's reportable segments consist of North American Furniture Solutions, ELA ("EMEA, Latin America, and Asia Pacific") Furniture Solutions, and Specialty and Consumer. The North American Furniture Solutions reportable segment includes the operations associated with the design, manufacture, and sale of furniture products for work-related settings, including office, education, and healthcare environments, throughout the United States and Canada. The business associated with the company's owned contract furniture dealers is also included in the North American Furniture Solutions reportable segment.

During fiscal 2014, the company renamed its international reportable business segment ELA Furniture Solutions in order to better describe the geographic regions it serves, which include EMEA, Latin America, and Asia-Pacific. Prior to this name change, the company referred to this segment as "Non-North America." ELA Furniture Solutions includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in these aforementioned geographic regions.

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

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

The performance of the operating segments is evaluated by the company's management using various financial measures. The following is a summary of certain key financial measures for the respective fiscal years indicated:
(In millions)
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
North American Furniture Solutions
 
$
1,216.3

 
$
1,221.9

 
$
1,218.5

ELA Furniture Solutions
 
392.2

 
377.3

 
347.3

Specialty and Consumer
 
273.5

 
175.7

 
158.3

Corporate
 
—

 
—

 
—

Total
 
$
1,882.0

 
$
1,774.9

 
$
1,724.1

 
 
 
 
 
 
 
Depreciation and Amortization:
 
 
 
 
 
 
North American Furniture Solutions
 
$
26.8

 
$
28.0

 
$
31.7

ELA Furniture Solutions
 
7.6

 
6.6

 
3.7

Specialty and Consumer
 
8.0

 
2.9

 
1.8

Corporate
 
—

 
—

 
—

Total
 
$
42.4

 
$
37.5

 
$
37.2

 
 
 
 
 
 
 
Operating Earnings (Losses):
 
 
 
 
 
 
North American Furniture Solutions
 
$
(27.0
)
 
$
76.6

 
$
96.9

ELA Furniture Solutions
 
23.1

 
24.7

 
32.1

Specialty and Consumer
 
4.6

 
15.4

 
15.1

Corporate
 
(26.4
)
 
(1.8
)
 
(6.5
)
Total
 
$
(25.7
)
 
$
114.9

 
$
137.6

 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
North American Furniture Solutions
 
$
28.9

 
$
33.6

 
$
20.3

ELA Furniture Solutions
 
6.4

 
15.9

 
3.3

Specialty and Consumer
 
5.5

 
0.7

 
4.9

Corporate
 
—

 
—

 
—

Total
 
$
40.8

 
$
50.2

 
$
28.5

 
 
 
 
 
 
 
Total Assets:
 
 
 
 
 
 
North American Furniture Solutions
 
$
457.0

 
$
427.8

 
$
389.2

ELA Furniture Solutions
 
244.8

 
250.9

 
231.5

Specialty and Consumer
 
176.5

 
174.3

 
36.5

Corporate
 
112.6

 
93.5

 
181.9

Total
 
$
990.9

 
$
946.5

 
$
839.1

 
 
 
 
 
 
 
Goodwill:
 
 
 
 
 
 
North American Furniture Solutions
 
$
135.8

 
$
136.1

 
$
104.9

ELA Furniture Solutions
 
42.6

 
41.1

 
40.5

Specialty and Consumer
 
49.8

 
49.8

 
1.0

Corporate
 
—

 
—

 
—

Total
 
$
228.2

 
$
227.0

 
$
146.4



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

The restructuring and asset impairment charges of $26.5 million, $1.2 million, and $5.4 million in fiscal 2014, fiscal 2013 and fiscal 2012, respectively are discussed in Note 16 of the Consolidated Financial Statements and were allocated to the “Corporate” category.

The company's product offerings consist primarily of office furniture systems, seating, freestanding furniture, storage and casegoods. These product offerings are marketed, distributed, and managed primarily as a group of similar products on an overall portfolio basis. The following is a summary of net sales by product category for the respective fiscal years indicated. Given that formal product line information is not available for the company as a whole, this summary is intended to represent a reasonable estimate of net sales by product category based on the best information available.
(In millions)
 
2014
 
2013
 
2012
Net Sales:
 
 
 
 
 
 
Systems
 
$
571.6

 
$
572.9

 
$
549.5

Seating
 
658.2

 
609.8

 
619.8

Freestanding and storage
 
386.4

 
395.0

 
334.3

Other (1)
 
265.8

 
197.2

 
220.5

Total
 
$
1,882.0

 
$
1,774.9

 
$
1,724.1



(1) “Other” primarily consists of textiles or uncategorized product sales and service sales.
 
Sales by geographic area are based on the location of the customer. Long-lived assets consist of long-term assets of the company, excluding financial instruments, deferred tax assets, and long-term intangibles. The following is a summary of geographic information for the respective fiscal years indicated. Individual foreign country information is not provided as none of the individual foreign countries in which the company operates are considered material for separate disclosure based on quantitative and qualitative considerations.
(In millions)
 
2014
 
2013
 
2012
Net Sales:
 
 
 
 
 
 
United States
 
$
1,406.3

 
$
1,291.5

 
$
1,271.9

   International
 
475.7

 
483.4

 
452.2

Total
 
$
1,882.0

 
$
1,774.9

 
$
1,724.1



(In millions)
 
2014
 
2013
 
2012
Long-lived assets:
 
 
 
 
 
 
United States
 
$
177.0

 
$
169.2

 
$
146.4

   International
 
35.4

 
29.8

 
18.1

Total
 
$
212.4

 
$
199.0

 
$
164.5



It is estimated that no single dealer accounted for more than 5 percent of the company's net sales in the fiscal year ended May 31, 2014. It is also estimated that the largest single end-user customer, the U.S. federal government, accounted for approximately $102 million or 5 percent of the company's fiscal 2014 net sales. These sales are recorded within the North American Furniture Solutions reportable segment.

Approximately 8.0 percent of the company's employees are covered by collective bargaining agreements, most of whom are employees of its Nemschoff and Herman Miller Ningbo subsidiaries.