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Operating Segments
 12 Months Ended
Jun. 01, 2024
Segment Reporting [Abstract]  
Operating Segments Operating Segments
The Company's reportable segments consists of three segments: Americas Contract, International Contract & Specialty, and Global Retail.
The Americas Contract segment includes the operations associated with the design, manufacture and sale of furniture products directly or indirectly through an independent dealership network for office, healthcare, and educational environments throughout North and South America.
The International Contract & Specialty segment includes the operations associated with the design, manufacture and sale of furniture products, indirectly or directly through an independent dealership network in Europe, the Middle East, Africa and Asia-Pacific as well as the global operations of the Specialty brands, which include Holly Hunt, Spinneybeck, Maharam, Edelman, and Knoll Textiles.
The Global Retail segment includes global 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, and physical retail 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.
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)June 1, 2024June 3, 2023May 28, 2022
Net sales:
Americas Contract$1,824.2  $2,026.1  $1,929.1 
International Contract & Specialty931.8  1,017.3  928.5 
Global Retail872.4 1,043.7 1,088.4 
Total$3,628.4  $4,087.1  $3,946.0 
Depreciation and amortization:
Americas Contract$94.9  $87.7  $104.5 
International Contract & Specialty35.1  33.4  52.3 
Global Retail25.1 34.0 33.8 
Corporate— — — 
Total$155.1  $155.1  $190.6 
Operating earnings (loss):
Americas Contract$98.7  $99.6  $(24.0)
International Contract & Specialty78.2  98.6  69.9 
Global Retail42.4 (15.5)134.5 
Corporate(52.1)(60.4)(140.6)
Total$167.2  $122.3  $39.8 
Capital expenditures:
Americas Contract$47.6  $52.4  $52.5 
International Contract & Specialty14.4  15.6  17.8 
Global Retail16.4 15.3 24.4 
Total$78.4  $83.3  $94.7 
Goodwill:
Americas Contract$530.1 $528.4 $530.1 
International Contract & Specialty304.4 303.0 304.3 
Global Retail391.8 $390.3 391.8 
Total$1,226.3 $1,221.7 $1,226.2 
Many of the Company's assets, including manufacturing, office and showroom facilities, support multiple segments. For that reason, it is impractical to disclose asset information on a segment basis.
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 furniture systems, seating, freestanding furniture, storage, casegoods, textiles, architectural and acoustical products. 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)June 1, 2024June 3, 2023May 28, 2022
Net sales:
Workplace$1,336.2  $1,559.7  $1,484.3 
Performance Seating835.0  889.5  931.1 
Lifestyle1,240.4  1,395.5  1,282.5 
Other (1)
216.8 242.4 248.1 
Total$3,628.4  $4,087.1  $3,946.0 
(1) “Other” primarily consists of uncategorized product sales and service sales.
In the current year, certain products were reclassified within the Performance Seating, Lifestyle, and Other categories based on management's internal reporting of the performance of these product lines. The prior years have been restated to reflect these changes.