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Operating Segments
 12 Months Ended
May 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure Operating Segments
The Company's segments consist of North America Contract, International Contract and Retail.

In fiscal 2018, the Company's segments consisted of North American Furniture Solutions, ELA ("EMEA, Latin America, and Asia Pacific") Furniture Solutions, Specialty and Consumer. Effective in the fourth quarter of fiscal 2019, the Company has revised its reportable segments to combine the Specialty reportable segment with the North American Furniture Solutions reportable segment. The newly combined segment is called "North America Contract". There were no changes to the Company's ELA Furniture Solutions ("ELA") and Consumer segments, but each has been renamed. Effective in the fourth quarter of fiscal 2019, ELA is now named "International Contract" and Consumer is named "Retail". The Specialty segment (Maharam, Geiger, Nemschoff and the Herman Miller Collection) has been combined with the North America Contract segment under a common segment manager as of the fourth quarter fiscal 2019. The change in operating segments reflect the basis of how the Company internally reports and evaluates financial information used to make operating decisions. Prior year results disclosed in the table below have been revised to reflect these changes.

The North America Contract segment includes the operations associated with the design, manufacture and sale of furniture and textile products for work-related settings, including office, education, and healthcare environments, throughout the United States and Canada. The business associated with the Company's owned contract furniture dealers is also included in the North America Contract segment. In addition to the Herman Miller brand, this segment includes the operations associated with the design, manufacture and sale of high-craft furniture products and textiles including Geiger wood products, Maharam textiles, Nemschoff, naughtone and Herman Miller Collection products.

The International Contract segment includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings in EMEA, Latin America and Asia-Pacific.

The Retail segment includes operations associated with the sale of modern design furnishings and accessories to third party retailers, as well as direct to consumer sales through e-commerce, direct mailing catalogs and DWR and HAY studios.

The Company also reports a “Corporate” category consisting primarily of unallocated expenses related to general corporate functions, including, but not limited to, certain legal, executive, corporate finance, information technology, administrative and acquisition-related costs. Management regularly reviews corporate costs and believes disclosing such information provides more visibility and transparency regarding how the chief operating decision maker reviews results of the Company. The accounting policies of the operating segments are the same as those of the Company.

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 years indicated:
 
Year Ended
(In millions)
May 30, 2020
 
June 1, 2019
 
June 2, 2018
Net Sales:
 
 
 
 
 
North America Contract
$
1,598.2

 
$
1,686.5

 
$
1,589.8

International Contract
502.8

 
492.2

 
434.5

Retail
385.6

 
388.5

 
356.9

Total
$
2,486.6

 
$
2,567.2

 
$
2,381.2

Depreciation and Amortization:
 
 
 
 
 
North America Contract
$
46.7

 
$
46.8

 
$
43.9

International Contract
17.4

 
10.5

 
10.2

Retail
14.7

 
14.1

 
12.1

Corporate
0.7

 
0.7

 
0.7

Total
$
79.5

 
$
72.1

 
$
66.9

Operating Earnings (Loss):
 
 
 
 
 
North America Contract
$
130.9

 
$
189.7

 
$
175.2

International Contract
18.2

 
57.8

 
36.9

Retail
(148.3
)
 
5.3

 
13.9

Corporate
(39.2
)
 
(49.3
)
 
(47.1
)
Total
$
(38.4
)
 
$
203.5

 
$
178.9

Capital Expenditures:
 
 
 
 
 
North America Contract
$
53.7

 
$
52.7

 
$
46.0

International Contract
10.4

 
16.6

 
11.4

Retail
4.9

 
16.5

 
13.2

Corporate
—

 
—

 
—

Total
$
69.0

 
$
85.8

 
$
70.6

Total Assets:
 
 
 
 
 
North America Contract
$
769.5

 
$
733.6

 
$
677.4

International Contract
512.5

 
356.8

 
283.4

Retail
310.9

 
310.0

 
291.2

Corporate
461.0

 
168.9

 
227.5

Total
$
2,053.9

 
$
1,569.3

 
$
1,479.5

Goodwill:
 
 
 
 
 
North America Contract
$
182.3

 
$
185.3

 
$
185.3

International Contract
163.7

 
39.7

 
40.0

Retail
—

 
78.8

 
78.8

Corporate
—

 
—

 
—

Total
$
346.0

 
$
303.8

 
$
304.1



The accounting policies of the 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 years indicated:
 
Year Ended
(In millions)
May 30, 2020
 
June 1, 2019
 
June 2, 2018
Net Sales:
 
 
 
 
 
Systems
$
589.3

 
$
668.0

 
$
601.5

Seating
1,041.6

 
1,013.5

 
965.9

Freestanding and storage
496.9

 
505.4

 
465.1

Textiles
138.8

 
113.8

 
94.3

Other (1)
220.0

 
266.5

 
254.4

Total
$
2,486.6

 
$
2,567.2

 
$
2,381.2

(1) “Other” primarily consists of 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 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.
 
Year Ended
(In millions)
May 30, 2020
 
June 1, 2019
 
June 2, 2018
Net Sales:
 
 
 
 
 
United States
$
1,795.8

 
$
1,865.8

 
$
1,737.9

International
690.8

 
701.4

 
643.3

Total
$
2,486.6

 
$
2,567.2

 
$
2,381.2

 
 
 
 
 
 
Long-lived assets:
 
 
 
 
 
United States
$
306.7

 
$
422.1

 
$
349.3

International
59.6

 
52.2

 
50.5

Total
$
366.3

 
$
474.3

 
$
399.8



The Company estimates that no single dealer accounted for more than 4 percent of the Company's net sales in the fiscal year ended May 30, 2020. The Company estimates that its largest single end-user customer accounted for $122.9 million, $129.6 million and $109.8 million of the Company's net sales in fiscal 2020, 2019 and 2018, respectively. This represents approximately 5 percent, 5 percent and 5 percent of the Company's net sales in fiscal 2020, 2019 and 2018, respectively.

Approximately 3 percent of the Company's employees are covered by collective bargaining agreements, most of whom are employees of its Nemschoff and Herman Miller Holdings Limited subsidiaries.