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Revenue from Contracts with Customers (Tables) | 6 Months Ended
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Dec. 01, 2018
Revenue from Contract with Customer [Abstract] |
Schedule of Cumulative Impact, Revenue | The cumulative impact to our Condensed Consolidated Balance Sheet as of June 3, 2018 was as follows:
| Balance at |  | Adjustments due |  | Balance at
(In millions) | June 2, 2018 |  | to ASC 606 |  | June 3, 2018
Balance Sheet |  |  |  |  |
Assets: |  |  |  |  |
Unbilled accounts receivable | $ | 1.9 |  |  | $ | 11.1 |  |  | $ | 13.0 |
Inventories, net | 162.4 |  |  | (7.1 | ) |  | 155.3 |
Liabilities: |  |  |  |  |
Accrued compensation and benefits | 86.3 |  |  | 0.2 |  |  | 86.5 |
Other accrued liabilities | 77.0 |  |  | 1.9 |  |  | 78.9 |
Equity: |  |  |  |  |
Retained earnings | 598.3 |  |  | 1.9 |  |  | 600.2 |
Disaggregation of Revenue | Revenue disaggregated by contract type has been provided in the table below:
| Three Months Ended |  | Six Months Ended
(In millions) | December 1, 2018 |  | December 1, 2018
Net Sales: |  |  |
Single performance obligation |  |  |
Product revenue | $ | 539.4 |  |  | $ | 1,074.6 |
Multiple performance obligations |  |  |
Product revenue | 107.9 |  |  | 192.7 |
Service revenue | 3.2 |  |  | 5.9 |
Other | 2.1 |  |  | 4.1 |
Total | $ | 652.6 |  |  | $ | 1,277.3 |
Revenue disaggregated by product type and reportable segment has been provided in the table below:
| Three Months Ended |  | Six Months Ended
(In millions) | December 1, 2018 |  | December 1, 2018
North American Furniture Solutions: |  |  |
Systems | $ | 143.5 |  |  | $ | 288.1 |
Seating | 100.0 |  |  | 196.6 |
Freestanding and storage | 78.5 |  |  | 153.2 |
Other | 31.2 |  |  | 59.0 |
Total North American Furniture Solutions | $ | 353.2 |  |  | $ | 696.9 |
ELA Furniture Solutions: |  |  |
Systems | $ | 28.4 |  |  | $ | 51.1 |
Seating | 62.1 |  |  | 130.8 |
Freestanding and storage | 13.9 |  |  | 24.3 |
Other | 14.1 |  |  | 27.8 |
Total ELA Furniture Solutions | $ | 118.5 |  |  | $ | 234.0 |
Specialty: |  |  |
Systems | $ | 1.8 |  |  | $ | 3.3 |
Seating | 26.9 |  |  | 55.9 |
Freestanding and storage | 19.5 |  |  | 32.3 |
Textiles | 4.0 |  |  | 9.0 |
Other | 29.4 |  |  | 58.4 |
Total Specialty | $ | 81.6 |  |  | $ | 158.9 |
Consumer: |  |  |
Systems | $ | 0.1 |  |  | $ | 0.1 |
Seating | 58.1 |  |  | 111.8 |
Freestanding and storage | 16.8 |  |  | 34.0 |
Other | 24.3 |  |  | 41.6 |
Total Consumer | $ | 99.3 |  |  | $ | 187.5 |
Total | $ | 652.6 |  |  | $ | 1,277.3 |
Schedule of Legacy GAAP Reconciliation | In accordance with the modified retrospective adoption rules per ASC 606, the Company has disclosed in the tables below the differences in our financial statements due to the adoption of the standard. The “As reported” column represents the financial statement values recorded in accordance with ASC 606, while the “Legacy GAAP” column represents what the financial statement values would have been under ASC 605, had the new standard not been adopted.
| Three Months Ended December 1, 2018
(In millions) | As reported |  | Performance Obligation Change |  | Gross vs. Net Change |  | Legacy GAAP
Statement of Comprehensive Income |  |  |  |  |  |  |
Net sales | $ | 652.6 |  |  | $ | (7.5 | ) |  | $ | (10.1 | ) |  | $ | 635.0 |
Cost of sales | 417.0 |  |  | (4.1 | ) |  | (10.1 | ) |  | 402.8 |
Gross margin | 235.6 |  |  | (3.4 | ) |  |  |  | 232.2 |
Total operating expenses | 182.5 |  |  | (0.1 | ) |  |  |  | 182.4 |
Operating earnings | 53.1 |  |  | (3.3 | ) |  |  |  | 49.8 |
Income tax expense | 11.2 |  |  | (0.6 | ) |  |  |  | 10.6 |
Net earnings | 39.3 |  |  | (2.7 | ) |  |  |  | 36.6 |
| Six Months Ended December 1, 2018
(In millions) | As reported |  | Performance Obligation Change |  | Gross vs. Net Change |  | Legacy GAAP
Statement of Comprehensive Income |  |  |  |  |  |  |
Net sales | $ | 1,277.3 |  |  | $ | (18.2 | ) |  | $ | (18.6 | ) |  | $ | 1,240.5 |
Cost of sales | 816.6 |  |  | (9.9 | ) |  | (18.6 | ) |  | 788.1 |
Gross margin | 460.7 |  |  | (8.3 | ) |  |  |  | 452.4 |
Total operating expenses | 361.6 |  |  | (0.2 | ) |  |  |  | 361.4 |
Operating earnings | 99.1 |  |  | (8.1 | ) |  |  |  | 91.0 |
Income tax expense | 20.0 |  |  | (1.7 | ) |  |  |  | 18.3 |
Net earnings | 75.2 |  |  | (6.4 | ) |  |  |  | 68.8 |
| As of December 1, 2018
(In millions) | As reported |  | Performance Obligation Change |  | Gross vs. Net Change |  | Legacy GAAP
Balance Sheet |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |
Unbilled accounts receivable | $ | 32.4 |  |  | $ | (29.3 | ) |  |  |  | $ | 3.1 |
Inventories, net | 178.5 |  |  | 16.5 |  |  |  |  | 195.0 |
Liabilities: |  |  |  |  |  |  |
Accrued compensation and benefits | 82.0 |  |  | (0.3 | ) |  |  |  | 81.7 |
Other accrued liabilities | 79.3 |  |  | (4.2 | ) |  |  |  | 75.1 |
Equity: |  |  |  |  |  |  |
Retained earnings | 650.6 |  |  | (8.3 | ) |  |  |  | 642.3 |

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