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Operating Segments
 12 Months Ended
Jun. 03, 2017
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, 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. 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. The company also reports a Corporate category consisting primarily of unallocated corporate expenses including acquisition-related costs and other unallocated corporate costs.

Subsequent to the end of fiscal 2017, the company implemented an organizational change that will result in the Nemschoff subsidiary joining the Specialty operating segment rather than the North American Furniture Solutions segment. Beginning in the first quarter of fiscal 2018, the company will recast the results of the Specialty segment to include the results of the Nemschoff subsidiary.

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)
 
2017
 
2016
 
2015
 
 
 
 
 
 
 
Net Sales:
 
 
 
 
 
 
North American Furniture Solutions
 
$
1,342.2

 
$
1,331.8

 
$
1,241.9

ELA Furniture Solutions
 
385.5

 
412.6

 
409.9

Specialty
 
232.4

 
231.8

 
219.9

Consumer
 
318.1

 
288.7

 
270.5

Corporate
 
—

 
—

 
—

Total
 
$
2,278.2

 
$
2,264.9

 
$
2,142.2

 
 
 
 
 
 
 
Depreciation and Amortization:
 
 
 
 
 
 
North American Furniture Solutions
 
$
32.0

 
$
27.9

 
$
26.5

ELA Furniture Solutions
 
8.8

 
8.5

 
8.2

Specialty
 
7.5

 
7.4

 
7.4

Consumer
 
10.2

 
8.6

 
7.3

Corporate
 
0.4

 
0.6

 
0.4

Total
 
$
58.9

 
$
53.0

 
$
49.8

 
 
 
 
 
 
 
Operating Earnings (Losses):
 
 
 
 
 
 
North American Furniture Solutions
 
$
137.7

 
$
152.0

 
$
125.2

ELA Furniture Solutions
 
30.8

 
35.3

 
25.9

Specialty
 
17.7

 
16.4

 
13.5

Consumer
 
5.3

 
8.1

 
14.7

Corporate
 
(0.7
)
 
(0.3
)
 
(15.9
)
Total
 
$
190.8

 
$
211.5

 
$
163.4

 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
North American Furniture Solutions
 
$
47.1

 
$
56.8

 
$
31.7

ELA Furniture Solutions
 
8.5

 
15.0

 
20.3

Specialty
 
9.7

 
3.1

 
3.7

Consumer
 
22.0

 
10.2

 
7.9

Corporate
 
—

 
—

 
—

Total
 
$
87.3

 
$
85.1

 
$
63.6

 
 
 
 
 
 
 
Total Assets:
 
 
 
 
 
 
North American Furniture Solutions
 
$
533.6

 
$
531.7

 
$
504.5

ELA Furniture Solutions
 
230.3

 
218.4

 
235.4

Specialty
 
157.9

 
147.3

 
151.6

Consumer
 
276.4

 
245.3

 
231.8

Corporate
 
108.1

 
92.5

 
69.4

Total
 
$
1,306.3

 
$
1,235.2

 
$
1,192.7

 
 
 
 
 
 
 
Goodwill:
 
 
 
 
 
 
North American Furniture Solutions
 
$
135.8

 
$
135.8

 
$
135.8

ELA Furniture Solutions
 
40.1

 
40.9

 
41.9

Specialty
 
49.8

 
49.8

 
49.8

Consumer
 
78.8

 
78.8

 
75.6

Corporate
 
—

 
—

 
—

Total
 
$
304.5

 
$
305.3

 
$
303.1


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.

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)
 
2017
 
2016
 
2015
Net Sales:
 
 
 
 
 
 
Systems
 
$
639.0

 
$
656.8

 
$
563.4

Seating
 
894.8

 
855.5

 
805.5

Freestanding and storage
 
428.8

 
456.9

 
484.1

Other (1)
 
315.6

 
295.7

 
289.2

Total
 
$
2,278.2

 
$
2,264.9

 
$
2,142.2



(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)
 
2017
 
2016
 
2015
Net Sales:
 
 
 
 
 
 
United States
 
$
1,690.1

 
$
1,757.0

 
$
1,640.6

   International
 
588.1

 
507.9

 
501.6

Total
 
$
2,278.2

 
$
2,264.9

 
$
2,142.2


(In millions)
 
2017
 
2016
 
2015
Long-lived assets:
 
 
 
 
 
 
United States
 
$
328.6

 
$
254.8

 
$
224.2

   International
 
45.3

 
48.1

 
53.8

Total
 
$
373.9

 
$
302.9

 
$
278.0



The company estimates that no single dealer accounted for more than 5 percent of the company's net sales in the fiscal year ended June 3, 2017. The company estimates that its largest single end-user customer accounted for $102 million, $88 million and $97 million of the company's net sales in fiscal 2017, 2016 and 2015, respectively. This represents approximately 5 percent, 4 percent and 5 percent of the company's net sales in fiscal 2017, 2016 and 2015, respectively.

Approximately 15 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.