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Operating Segments
 12 Months Ended
May 29, 2021
Segment Reporting [Abstract]  
Segment Reporting Disclosure Operating Segments
The Company's segments consist of North America Contract, International Contract and Retail.

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, healthcare, and educational environments, throughout the United States and Canada. The business associated with the Company's owned contract furniture dealer 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, and naughtone products.

The International Contract segment includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings in Europe, the Middle East and Africa ("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 eCommerce, direct-mail catalogs, DWR studios and HAY stores.

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.

Subsequent to the end of fiscal 2021, the Company implemented an organizational change that will result in a change in our reportable segments. Beginning in the first quarter of fiscal 2022, the Company will recast the historical results in reflection of the change. Below is a summary of the change:

•The activities related to the manufacture and sale of furniture products direct to consumers and to third-party retailers that currently reside within the International Contract segment will move to the Retail segment.
•The operations associated with the design, manufacture and sale of furniture products for work-related settings in Latin America will move to the North America Contract segment to form a new Americas Contract segment.
•Operations of the DWR Contract business, a division of DWR that sells design furnishings and accessories for use in work-related settings will move into the Americas Contract segment.
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 29, 2021May 30, 2020June 1, 2019
Net Sales:
North America Contract$1,194.0  $1,598.2  $1,686.5 
International Contract669.0  502.8  492.2 
Retail602.1 385.6 388.5 
Total$2,465.1  $2,486.6  $2,567.2 
Depreciation and Amortization:
North America Contract$53.5  $46.7  $46.8 
International Contract22.1  17.4  10.5 
Retail11.6 14.7 14.1 
Corporate—  0.7  0.7 
Total$87.2  $79.5  $72.1 
Operating Earnings (Loss):
North America Contract$74.1  $130.9  $189.7 
International Contract93.0  18.2  57.8 
Retail117.2 (148.3)5.3 
Corporate(53.7)(39.2)(49.3)
Total$230.6  $(38.4) $203.5 
Capital Expenditures:
North America Contract$44.9  $53.7  $52.7 
International Contract10.3  10.4  16.6 
Retail4.6 4.9 16.5 
Corporate—  —  — 
Total$59.8  $69.0  $85.8 
Total Assets:
North America Contract$745.3  $769.5  $733.6 
International Contract572.4  512.5  356.8 
Retail340.1 310.9 310.0 
Corporate404.1  461.0  168.9 
Total$2,061.9  $2,053.9  $1,569.3 
Goodwill:
North America Contract$187.4 $182.3 $185.3 
International Contract176.8 163.7 39.7 
Retail— — 78.8 
Corporate— — — 
Total$364.2 $346.0 $303.8 

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 29, 2021May 30, 2020June 1, 2019
Net Sales:
Workplace$854.7  $1,135.8  $1,201.8 
Performance Seating784.6  646.8  708.5 
Lifestyle689.9  537.5  473.5 
Other (1)
135.9 166.5 183.4 
Total$2,465.1  $2,486.6  $2,567.2 
(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 29, 2021May 30, 2020June 1, 2019
Net Sales:
United States$1,728.9  $1,795.8  $1,865.8 
International736.2  690.8  701.4 
Total$2,465.1  $2,486.6  $2,567.2 
Long-lived assets:
United States$311.1  $306.7  $422.1 
International70.6  59.6  52.2 
Total$381.7  $366.3  $474.3 

The Company approximates that no single dealer accounted for more than three percent of the Company's net sales in the fiscal year ended May 29, 2021. The Company estimates that the largest single end-user customer accounted for $113.0 million, $122.9 million and $129.6 million of the Company's net sales in fiscal 2021, 2020 and 2019, respectively. This represents approximately five percent of the Company's net sales in in each of fiscal 2021, 2020 and 2019. The Company's ten largest customers in the aggregate accounted for approximately 17 percent of net sales in fiscal 2021 and 18 percent of net sales in fiscal 2020 and 2019.
Approximately 4 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.