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Revenue from Contracts with Customers (Tables)

6 Months Ended

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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