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Investments in Nonconsolidated Affiliates
 12 Months Ended
Jun. 03, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Nonconsolidated Affiliates Investments in Nonconsolidated Affiliates
The Company has certain investments in entities that are accounted for using the equity method (“nonconsolidated affiliates”). The investments are included in Other noncurrent assets in the Consolidated Balance Sheets and the equity earnings are included in Equity (loss) earnings from nonconsolidated affiliates, net of tax in the Consolidated Statements of Comprehensive Income. Refer to the tables below for the investment balances that are included in the Consolidated Balance Sheets and for the equity earnings that are included in the Consolidated Statements of Comprehensive Income.
(In millions)June 3, 2023May 28, 2022
Investments in nonconsolidated affiliates$8.5 $9.9 
(In millions)June 3, 2023May 28, 2022May 29, 2021
Equity (loss) earnings from nonconsolidated affiliates, net of tax$(0.8)$— $0.3 
The Company had an ownership interest in two nonconsolidated affiliates at June 3, 2023. Refer to the Company's ownership percentages shown below:
Ownership InterestJune 3, 2023May 28, 2022
Kvadrat Maharam Pty Limited50.0%50.0%
Global Holdings Netherlands B.V. (Maars)48.2%48.2%
Kvadrat Maharam
The Kvadrat Maharam Pty Limited nonconsolidated affiliate is a distribution entity engaged in selling decorative upholstery, drapery and wall covering products.
Maars
On August 31, 2018, the Company acquired 48.2% of the outstanding equity of Global Holdings Netherlands B.V., which owns 100% of Maars Holding B.V. ("Maars”), a Harderwijk, Netherlands-based worldwide leader in the design and manufacturing of interior wall solutions. The Company acquired its 48.2% ownership interest in Maars for approximately $6.1 million in cash. The entity is accounted for using the equity method of accounting as the Company has significant influence, but not control, over the entity.
As of the August 31, 2018 acquisition date, the Company's investment value in Maars was $3.1 million more than the Company's proportionate share of the underlying net assets. This amount represented the difference between the price that the Company paid to acquire 48.2% of the outstanding equity and the carrying value of the net assets of Maars. Of this difference, $2.7 million is being amortized over the remaining useful lives of the assets, while $0.4 million is considered a permanent difference.
In the fourth quarter of fiscal 2023, the Company determined the fair value was less than the carrying value and concluded the impairment was other-than-temporary and recorded an impairment charge of approximately $1.0 million within Other income and expense in the Consolidated Statements of Comprehensive Income. At June 3, 2023, the Company's investment value in Maars is $1.0 million more than the Company's proportionate share of the underlying net assets, the total of which is being amortized over the remaining useful lives of the assets.
Transactions with Nonconsolidated Affiliates
Sales to and purchases from nonconsolidated affiliates were as follows for the periods presented below:
(In millions)June 3, 2023May 28, 2022May 29, 2021
Sales to nonconsolidated affiliates$2.8 $0.7 $1.0 
Purchases from nonconsolidated affiliates$— $0.6 $0.3 
Balances due to or due from nonconsolidated affiliates were as follows for the periods presented below:
(In millions)June 3, 2023May 28, 2022
Receivables from nonconsolidated affiliates$0.5 $0.3 
Payables to nonconsolidated affiliates$— $—