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Investments in Nonconsolidated Affiliates
 12 Months Ended
Jun. 01, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Nonconsolidated Affiliates Investments in Nonconsolidated Affiliates
The Company has an investment in an entity that is accounted for using the equity method (“nonconsolidated affiliate”). The investment is included in Other noncurrent assets in the Consolidated Balance Sheets and the equity earnings are included in Equity (loss) earnings from nonconsolidated affiliate, net of tax in the Consolidated Statements of Comprehensive Income. Refer to the tables below for the investment balance that is included in the Consolidated Balance Sheets and for the equity earnings that are included in the Consolidated Statements of Comprehensive Income.
(In millions)June 1, 2024June 3, 2023
Investments in nonconsolidated affiliate$2.2 $8.5 
(In millions)June 1, 2024June 3, 2023May 28, 2022
Equity (loss) earnings from nonconsolidated affiliate, net of tax$(0.4)$(0.8)$— 
The Company had an ownership interest in one nonconsolidated affiliate at June 1, 2024. Refer to the Company's ownership percentages shown below:
Ownership InterestJune 1, 2024June 3, 2023
Kvadrat Maharam Pty Limited50.0%50.0%
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 was amortized over the remaining useful lives of the assets, while $0.4 million was 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.
On October 30, 2023, the Company sold its 48.2% investment in Global Holdings Netherlands B.V. for total purchase consideration of $5.9 million. As part of this transaction, we received cash proceeds of $3.5 million at closing, a $1.4 million receivable under a vendor loan, and $0.9 million of cash held in an escrow account to secure the representations and warranties made to the purchaser. As a result of the sale, a loss of $0.4 million was recorded in Equity (loss) income from nonconsolidated affiliates, net of tax during the twelve months ended June 1, 2024.
Transactions with Nonconsolidated Affiliates
Sales to and purchases from nonconsolidated affiliates were as follows for the periods presented below:
(In millions)June 1, 2024June 3, 2023May 28, 2022
Sales to nonconsolidated affiliates$2.1 $2.8 $0.7 
Purchases from nonconsolidated affiliates$— $— $0.6 
Balances due to or due from nonconsolidated affiliates were as follows for the periods presented below:
(In millions)June 1, 2024June 3, 2023
Receivables from nonconsolidated affiliates$0.3 $0.5 
Payables to nonconsolidated affiliates$— $—