XML 62 R36.htm IDEA: XBRL DOCUMENT v3.7.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Jun. 03, 2017
Valuation and Qualifying Accounts Disclosure  
Schedule of Pre-Tax Compensation Expense and Related Tax Benefits
Pre-tax compensation expense and the related income tax benefit for all types of stock-based programs was as follows for the periods indicated:
(In millions)
 
June 3, 2017
 
May 28, 2016
 
May 30, 2015
Employee stock purchase program
 
$
0.3

 
$
0.3

 
$
0.3

Stock option plans
 
2.0

 
1.9

 
2.6

Restricted stock grants
 
—

 
—

 
0.1

Restricted stock units
 
3.6

 
3.2

 
3.7

Performance share units
 
2.8

 
6.5

 
3.3

Total
 
$
8.7

 
$
11.9

 
$
10.0

 
 
 
 
 
 
 
Tax benefit
 
$
3.1

 
$
4.3

 
$
3.6
Schedule of Fair Value of Employee Stock Options
In determining these values, the following weighted-average assumptions were used for the options granted during the fiscal years indicated.
 
2017
 
2016
 
2015
Risk-free interest rates (1)
1.01
%
 
1.51
%
 
1.46
%
Expected term of options (2)
4.0 years

 
4.0 years

 
4.0 years

Expected volatility (3)
26
%
 
33
%
 
36
%
Dividend yield (4)
2.13
%
 
2.03
%
 
1.85
%
Weighted-average grant-date fair value of stock options:
 
 
 
 
 
Granted with exercise prices equal to the fair market value of the stock on the date of grant
$
5.50

 
$
6.73

 
$
7.74
Schedule of Stock Option Plan Transactions
The following is a summary of the transactions under the company's stock option plans:
 
 
Shares Under Option
 
Weighted-Average Exercise Prices
 
Weighted-Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value
(In millions)
Outstanding at May 28, 2016
 
921,380

 
$
25.80

 
4.20
 
$
5.5

     Granted at market
 
745,141

 
$
31.86

 
 
 
 
     Exercised
 
(327,299
)
 
$
28.84

 
 
 
 
     Forfeited or expired
 
(9,520
)
 
$
38.11

 
 
 
 
Outstanding at June 3, 2017
 
1,329,702

 
$
28.36

 
7.26
 
$
5.8

Ending vested + expected to vest
 
1,325,647

 
$
28.35

 
7.25
 
$
5.8

Exercisable at end of period
 
498,522

 
$
22.95

 
4.37
 
$
4.9
Schedule of Restricted Stock Grants
The company recognizes the related compensation expense on a straight-line basis over the requisite service period. A summary of shares subject to restrictions are as follows:
 
 
2017
 
 
Shares
 
Weighted Average Grant-Date Fair Value
Outstanding at May 28, 2016
 
20,823

 
$
21.35

Vested
 
(20,323
)
 
$
21.38

Forfeited
 
(500
)
 
$
20.17

Outstanding at June 3, 2017
 
—

 
$
—
Schedule of Restricted Stock Unit (RSU) Activity
The following is a summary of restricted stock unit transactions for the fiscal years indicated:
 
Share
Units
 
Weighted Average
Grant-Date
Fair Value
 
Aggregate Intrinsic Value in Millions
 
Weighted-Average
Remaining Contractual
Term (Years)
Outstanding at May 28, 2016
377,861

 
$
27.83

 
$
12.0

 
1.40
Granted
114,778

 
$
31.83

 
 
 
 
Forfeited
(12,951
)
 
$
29.25

 
 
 
 
Released
(94,736
)
 
$
28.70

 
 
 
 
Outstanding at June 3, 2017
384,952

 
$
28.73

 
$
12.6

 
1.14
Ending vested + expected to vest
379,037

 
29.30

 
$
12.4

 
1.13
Schedule of Performance-based Stock Units (PSU) Activity
The following is a summary of performance share unit transactions for the fiscal years indicated:
 
Share
Units
 
Weighted Average Grant-Date Fair Value
 
Aggregate Intrinsic
Value in Millions
 
Weighted-Average Remaining Contractual Term (Years)
Outstanding at May 28, 2016
433,714

 
$
31.74

 
$
13.7

 
1.20
Granted
141,218

 
$
29.40

 
 
 
 
Forfeited
(43,945
)
 
$
35.75

 
 
 
 
Released
(113,040
)
 
$
29.34

 
 
 
 
Outstanding at June 3, 2017
417,947

 
$
31.18

 
$
13.7

 
1.03
Ending vested + expected to vest
413,358

 
$
31.23

 
$
13.5

 
1.03
Schedule of Director Share Based Compensation
The exercise price of the stock options granted may not be less than the market price of the company's common stock on the date of grant. Under the plan, the Board members received the following shares or options in the fiscal years indicated:
 
 
2017
 
2016
 
2015
Shares of common stock
 
9,982

 
21,988

 
13,752

Shares through the deferred compensation program
 
2,582

 
3,118

 
—
Herman Miller Consumer Holdings Inc  
Valuation and Qualifying Accounts Disclosure  
Schedule of Fair Value of Employee Stock Options
The following weighted-average assumptions were used to value the liability associated with HMCH stock options as of June 3, 2017 and May 28, 2016.
 
 
2017
 
2016
Risk-free interest rates (1)
 
1.29
%
 
1.07
%
Expected term of options (2)
 
2.1 years

 
3.1 years

Expected volatility (3)
 
35
%
 
35
%
Dividend yield
 
not applicable

 
not applicable

Strike price
 
$
24.39

 
24.39

Per share value (4)
 
$
3.24

 
6.52
Schedule of Stock Option Plan Transactions
 
 
Shares Under Option
 
Weighted-Average Exercise Prices
 
Weighted-Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value (In millions)
Outstanding at May 28, 2016
 
500,376

 
$
24.07

 
3.20
 
$
0.4

     Granted
 
40,425

 
$
24.63

 
 
 
 
     Exercised
 
(2,957
)
 
$
6.40

 
 
 
 
     Forfeited
 
(11,600
)
 
$
24.39

 
 
 
 
Outstanding at June 3, 2017
 
526,244

 
$
24.20

 
2.20
 
$
0.1

Exercisable at end of period
 
46,758

 
$
22.30

 
2.20
 
$
0.1


The total pre-tax intrinsic value of HMCH options exercised during fiscal 2017 was $0.1 million. The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on the HMCH market price, less the strike price, as of the end of the period presented, which would have been received by the option holders had all option holders exercised in-the-money options as of that date.