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Operating Segments
 12 Months Ended
May. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure
Operating Segments
Following the acquisition of DWR, the company realigned the composition of the reportable segments to reflect the new operational and management divisions of the business. As a result, the previously defined "Specialty and Consumer" structure was divided into two separate segments. Specialty includes the operations associated with the design, manufacture, and sale of high-craft furniture products and textiles including Geiger wood products, Maharam textiles, and Herman Miller Collection products. The Consumer segment includes the operations associated with the sale of modern design furnishings and accessories to third party retail distributors, as well as direct to consumer sales through eCommerce and DWR studios. Prior year results have been revised to reflect this change. The North American and ELA segments were not affected by these changes.

The company's reportable segments consist of North American Furniture Solutions, ELA ("EMEA, Latin America, and Asia Pacific") Furniture Solutions, Specialty, and Consumer. The North American Furniture Solutions 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. ELA Furniture Solutions includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the EMEA, Latin America, and Asia-Pacific geographic regions.

The company also reports a “Corporate” category consisting primarily of unallocated corporate expenses including restructuring, impairment, acquisition-related costs, and other unallocated corporate 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)
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
North American Furniture Solutions
 
$
1,241.9

 
$
1,216.3

 
$
1,221.9

ELA Furniture Solutions
 
409.9

 
392.2

 
377.3

Specialty
 
219.9

 
205.8

 
111.7

Consumer
 
270.5

 
67.7

 
64.0

Corporate
 
—

 
—

 
—

Total
 
$
2,142.2

 
$
1,882.0

 
$
1,774.9

 
 
 
 
 
 
 
Depreciation and Amortization:
 
 
 
 
 
 
North American Furniture Solutions
 
$
26.5

 
$
26.8

 
$
28.0

ELA Furniture Solutions
 
8.2

 
7.6

 
6.6

Specialty
 
7.4

 
6.8

 
2.1

Consumer
 
7.3

 
1.2

 
0.8

Corporate
 
0.4

 
—

 
—

Total
 
$
49.8

 
$
42.4

 
$
37.5

 
 
 
 
 
 
 
Operating Earnings (Losses):
 
 
 
 
 
 
North American Furniture Solutions
 
$
125.2

 
$
(27.0
)
 
$
76.6

ELA Furniture Solutions
 
25.9

 
23.1

 
24.7

Specialty
 
13.5

 
(5.3
)
 
1.8

Consumer
 
14.7

 
9.9

 
13.6

Corporate
 
(15.9
)
 
(26.4
)
 
(1.8
)
Total
 
$
163.4

 
$
(25.7
)
 
$
114.9

 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
North American Furniture Solutions
 
$
31.7

 
$
28.9

 
$
33.6

ELA Furniture Solutions
 
20.3

 
6.4

 
15.9

Specialty
 
3.7

 
5.5

 
0.7

Consumer
 
7.9

 
—

 
—

Corporate
 
—

 
—

 
—

Total
 
$
63.6

 
$
40.8

 
$
50.2

 
 
 
 
 
 
 
Total Assets:
 
 
 
 
 
 
North American Furniture Solutions
 
$
500.0

 
$
457.0

 
$
427.8

ELA Furniture Solutions
 
235.4

 
244.8

 
250.9

Specialty
 
151.6

 
157.7

 
158.0

Consumer
 
231.8

 
18.8

 
16.3

Corporate
 
69.4

 
112.6

 
93.5

Total
 
$
1,188.2

 
$
990.9

 
$
946.5

 
 
 
 
 
 
 
Goodwill:
 
 
 
 
 
 
North American Furniture Solutions
 
$
135.8

 
$
135.8

 
$
136.1

ELA Furniture Solutions
 
41.9

 
42.6

 
41.1

Specialty
 
49.8

 
49.8

 
49.8

Consumer
 
75.6

 
—

 
—

Corporate
 
—

 
—

 
—

Total
 
$
303.1

 
$
228.2

 
$
227.0





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 $12.7 million, $26.5 million, and $1.2 million in fiscal 2015, fiscal 2014 and fiscal 2013, 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 estimated by product category for the respective fiscal years indicated.
(In millions)
 
2015
 
2014
 
2013
Net Sales:
 
 
 
 
 
 
Systems
 
$
563.4

 
$
571.6

 
$
572.9

Seating
 
805.5

 
658.2

 
609.8

Freestanding and storage
 
484.1

 
386.4

 
395.0

Other (1)
 
289.2

 
265.8

 
197.2

Total
 
$
2,142.2

 
$
1,882.0

 
$
1,774.9



(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)
 
2015
 
2014
 
2013
Net Sales:
 
 
 
 
 
 
United States
 
$
1,640.6

 
$
1,406.3

 
$
1,291.5

   International
 
501.6

 
475.7

 
483.4

Total
 
$
2,142.2

 
$
1,882.0

 
$
1,774.9



(In millions)
 
2015
 
2014
 
2013
Long-lived assets:
 
 
 
 
 
 
United States
 
$
224.2

 
$
177.0

 
$
169.2

   International
 
53.8

 
35.4

 
29.8

Total
 
$
278.0

 
$
212.4

 
$
199.0



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 30, 2015. It is also estimated that the largest single end-user customer, the U.S. federal government, accounted for approximately $97 million or 5 percent of the company's fiscal 2015 net sales. These sales are recorded within the North American Furniture Solutions reportable segment.

Approximately 14.1 percent of the company's employees are covered by collective bargaining agreements, most of whom are employees of its Nemschoff, Herman Miller Ningbo, and Herman Miller Dongguan subsidiaries.