XML 66 R23.htm IDEA: XBRL DOCUMENT
v3.20.2

Restructuring Expenses | 12 Months Ended
--- | ---
May 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring Expenses | Restructuring Expenses During the fourth quarter of fiscal 2018, the Company announced a facilities consolidation plan related to its International Contract segment. This impacted certain office and manufacturing facilities in the United Kingdom and China. The plan is expected to generate cost savings of approximately $3 million. To date, the Company recognized restructuring and impairment expenses of $7.8 million, with $1.4 million recognized in fiscal 2020 and the remainder in fiscal 2019 and 2018. These expenses related to the facilities consolidation plan, comprised primarily of an asset impairment recorded against an office building in the United Kingdom that was vacated and the consolidation of the Company's manufacturing facilities in China. No material future restructuring costs related to the plan are expected as the plan is substantially complete. The office buildings and related assets of United Kingdom and China have a carrying value of approximately $7.8 million and meet the criteria to be designated as assets held for sale. Therefore these assets have been classified as current assets and included within "Other current assets" in the Consolidated Balance Sheets at May 30, 2020. During the fourth quarter of fiscal 2019, the Company announced restructuring activities associated w ith profit improvement initiatives, including costs associated with an early retirement plan. The plan is expected to generate annual cost savings of approximately $10 million. To date, the Company has recognized $11.1 million of restructuring expense related to the plan. During the year ended May 30, 2020, the Company recognized $1.7 million related to the plan. The early retirement plan is complete and no future costs related to this plan are expected. In the second quarter of fiscal 2020, the North America Contract segment initiated restructuring discussions with labor unions related to its Nemschoff operation in Wisconsin. The discussions were concluded in the third quarter of fiscal 2020 and as a result, the Company anticipates the total estimated costs related to the actions will be approximately $5 million. These restructuring costs relate to potential partial outsourcing and in-sourcing strategies, long-lived asset impairments and employee-related costs. In conjunction with these discussions, during the year ended May 30, 2020, the Company has recorded $3.2 million in pre-tax restructuring expense related to this plan which is expected to be completed in fiscal 2021. In the second quarter of fiscal 2020, the Company initiated a reorganization of the Global Sales and Product teams. The reorganization activities occurred primarily in the North America business with additional costs incurred Internationally. In the year ended May 30, 2020, the Company has recorded a total of $2.6 million in pre-tax restructuring expense related to this plan. The reorganization is complete and no future costs related to this plan are expected. In the third quarter of fiscal 2020, the Company announced a reorganization of the Retail segment's leadership team. The Company recognized pre-tax severance and employee related restructuring expense of $2.2 million related to the plan. No material future restructuring costs related to the plan are expected as the plan is substantially complete. The following table provides an analysis of the changes in the restructuring costs reserve for the above plans for the fiscal years ended June 1, 2019 and May 30, 2020:
(In millions) | Severance and Employee-Related | Exit or Disposal Activities | Total
June 2, 2018 | $ | — |  | $ | — |  | $ | — |
Restructuring Costs | 7.0 |  | 3.2 |  | $ | 10.2 |
Amounts Paid | (0.2 | ) | (2.1 | ) | $ | (2.3 | )
June 1, 2019 | $ | 6.8 |  | $ | 1.1 |  | $ | 7.9 |
Restructuring Costs | 9.9 |  | 1.2 |  | $ | 11.1 |
Amounts Paid | (10.8 | ) | (1.5 | ) | $ | (12.3 | )
May 30, 2020 | $ | 5.9 |  | $ | 0.8 |  | $ | 6.7 |
In the fourth quarter of fiscal 2020, the Company announced a restructuring plan (“May 2020 restructuring plan") to substantially reduce expenses in response to the impact of the COVID-19 pandemic and related restrictions. These activities included voluntary and involuntary reductions in its North American and international workforces. Combined, these actions resulted in the elimination of approximately 400 full-time positions throughout the Company in various businesses and functions. As the result of these actions, the Company projects an annualized expense reduction of approximately $40 million. The Company incurred severance and related charges of $15.3 million in fiscal 2020, consisting solely of cash expenditures for employee termination and severance costs to be paid in fiscal 2021. The following table provides an analysis of the changes in the restructuring cost reserve for the May 2020 restructuring plan for the fiscal year ended May 30, 2020:
(In millions) | Severance and Employee-Related
Beginning Balance | $ | — |
Restructuring Costs | 15.3 |
Ending Balance | $ | 15.3 |
The following is a summary of restructuring expenses by segment for the fiscal years indicated:
| Year Ended
(In millions) | May 30, 2020 |  | June 1, 2019 |  | June 2, 2018
North America Contract | $ | 18.7 |  |  | $ | 7.7 |  |  | $ | 1.8 |
International Contract | 4.8 |  |  | 2.5 |  |  | 3.9 |
Retail | 2.9 |  |  | — |  |  | — |
Total | $ | 26.4 |  |  | $ | 10.2 |  |  | $ | 5.7 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration