Acquisitions and Divestitures (Tables)

3 Months Ended

Aug. 30, 2014

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the fair values of the assets acquired and the liabilities assumed from Design Within Reach on July 28, 2014. The allocation of the purchase price is still considered preliminary and is based upon valuation information available and estimates made at July 28, 2014. The company is still finalizing information related to the valuation and useful lives of intangible assets, deferred income taxes, and goodwill. The valuation process is not complete and the final determination of the fair values may result in further adjustments to the values presented below:



Valuation as of July 28, 2014
(In millions)	Fair Value
Purchase price	$	155.0
Fair value of the assets acquired:
Cash	1.2
Accounts receivable	2.4
Inventory	47.4
Other current assets	5.5
Long term deferred tax asset	3.7
Goodwill	74.4
Other intangible assets	69.6
Property	32.0
Other long term assets	2.4
Total assets acquired	238.6
Fair value of liabilities assumed:
Accounts payable	20.8
Current deferred tax liabilities	0.6
Accrued compensation and benefits	1.6
Other accrued liabilities	12.3
Long term deferred tax liability	16.4
Other long term liabilities	0.4
Total liabilities assumed	52.1
Redeemable noncontrolling interests	25.7
Noncontrolling interests	5.8
Net assets acquired	$	155.0

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets acquired as a result of the acquisition of Design Within Reach were preliminarily valued at $69.6 million. These amounts are reflected in the values presented in the table below:



Intangible Assets Acquired from the DWR Acquisition
(In millions)	Fair Value		Useful Life
Trade Names and Trademarks	$	55.1	Indefinite
Exclusive Distribution Agreements	0.2		1.5 years
Customer Relationships	13.1		10 - 16 years
Product Development Designs	1.2		7 years
Total Intangible Assets Acquired	$	69.6

Business Combinations Results of Operations of Acquiree

The following table provides net sales and results of operations from DWR included in the company’s results since the July 28, 2014 acquisition. Included in the results from DWR was an increase in cost of sales of $1.6 million and a decrease in sales of $1.4 million stemming from inventory-related purchase accounting adjustments.



DWR Results of Operations
(In millions)	July 28, 2014 - August 30, 2014
DWR Net sales	$	21.6
Intercompany sales elimination	(1.6		)
Net sales impact to Herman Miller, Inc.	$	20.0

Net loss	$	(1.6	)