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Restructuring and Integration Expense | 3 Months Ended
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Sep. 03, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Integration Expense | Restructuring and Integration Expense As part of restructuring and integration activities the Company has incurred expenses that qualify as exit and disposal costs under U.S. GAAP. These include severance and employee benefit costs as well as other direct separation benefit costs. Severance and employee benefit costs primarily relate to cash severance, non-cash severance, including accelerated equity award compensation expense. The Company also incurs expenses that are an integral component of, and directly attribute to, our restructuring and integration activities, which do not qualify as exit and disposal costs under U.S. GAAP. These include integration implementation costs that relate primarily to professional fees and non-cash losses incurred on debt extinguishment. The expense associated with integration initiatives are included in Selling, general and administrative and the expense associated with restructuring activities are included in Restructuring expense in the Condensed Consolidated Statements of Comprehensive Income. Non-cash costs related to debt extinguishment in the financing of the transaction is recorded in Other expense (income), net in the Condensed Consolidated Statements of Comprehensive Income. Knoll Integration: Following the Knoll merger the Company announced a multi-year program (the "Knoll Integration") designed to reduce costs, integrate and optimize the combined organization. The Company currently expects that the Knoll Integration will result in pre-tax costs that are expected not to exceed approximately $100 million to $120 million, comprised of the following categories: •Severance and employee benefit costs associated with plans to integrate our operating structure, resulting in workforce reductions. These costs will primarily include: severance and employee benefits (cash severance, non-cash severance, including accelerated stock-compensation award expense and other termination benefits). •Exit and disposal activities include those incurred as a direct result of integration activities, primarily including contract and lease terminations and asset impairment charges. •Other integration costs include professional fees and other incremental third-party expenses, including a loss on extinguishment of debt associated with financing of the merger. For the three months ended September 3, 2022, we incurred $4.6 million of costs related to the Knoll Integration including: $1.2 million of severance and employee benefit costs, $1.4 million of lease termination fees, and $2.0 million of other integration costs. The following table provides an analysis of the changes in liability balance for Knoll Integration costs that qualify as exit and disposal costs under U.S. GAAP (i.e., severance and employee benefit costs and exit and disposal activities) for the three months ended September 3, 2022:
(In millions) | Severance and Employee Benefit | Exit and Disposal Activities | Total
May 29, 2022 | $ | 1.4 |  | $ | — |  | $ | 1.4 |
Integration Costs | 1.2 |  | 1.4 |  | 2.6 |
Amounts Paid | (1.5) |  | (1.4) |  | (2.9) |
Non-cash costs | (0.2) |  | — |  | (0.2) |
September 3, 2022 | $ | 0.9 |  | $ | — |  | $ | 0.9 |
The Company's expects that a substantial portion of the liability for the Knoll Integration as of September 3, 2022 to be paid in fiscal year 2023. The following is a summary of integration expenses by segment for the periods indicated:
| Three Months Ended |  |
(In millions) | September 3, 2022 |  | August 28, 2021 |  |  |  |
Americas Contract | $ | 2.9 |  |  | $ | 1.0 |  |  |  |  |
International Contract & Specialty | 0.5 |  |  | — |  |  |  |  |
Retail | 0.2 |  |  | — |  |  |  |  |
Corporate | 1.0 |  |  | 54.6 |  |  |  |  |
Total | $ | 4.6 |  |  | $ | 55.6 |  |  |  |  |
Restructuring Activities: During the first quarter of fiscal 2023, the Company recognized restructuring charges associated with involuntary workforce reductions within the Global Retail segment. As a result of this action the Company incurred severance and related charges of $0.5 million. The following table provides an analysis of the changes in the restructuring cost reserve for the three months ended September 3, 2022:
(In millions) | Severance and Employee-Related |  |
May 28, 2022 | $ | — |  |  |
Restructuring Costs | 0.5 |  |  |
Amounts Paid | — |  |  |
September 3, 2022 | $ | 0.5 |  |  |
The following is a summary of restructuring expenses by segment for the periods indicated:
| Three Months Ended |  |
(In millions) | September 3, 2022 |  | August 28, 2021 |  |  |  |
Americas Contract | $ | — |  |  | $ | — |  |  |  |  |
International Contract & Specialty | — |  |  | — |  |  |  |  |
Retail | 0.5 |  |  | — |  |  |  |  |
Total | $ | 0.5 |  |  | $ | — |  |  |  |  |

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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