Operating Segments

6 Months Ended

Dec. 02, 2017

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Operating Segments

Operating Segments

Effective in the first quarter of fiscal 2018, the company moved the operating results of its Nemschoff subsidiary, which primarily focuses on healthcare, from its North America Furniture Solutions operating segment to its Specialty operating segment. This change was made to better leverage the skills and capabilities of the company's Specialty business teams, particularly in the areas of craft wood and upholstery manufacturing. Additionally, the company has refreshed its methodology of allocating selling, general and administrative costs to the operating segments. The company has also identified certain corporate support costs that will no longer be allocated to the operating segments and that will be tracked and reported as "Corporate Unallocated Expenses". The company made these changes in the way that it allocates and reports its costs to better reflect the utilization of functional services across its operating segments and to also more closely align to industry practice. Prior year results disclosed in the table below have been revised to reflect these changes.

The company's reportable segments consist of North American Furniture Solutions, ELA ("EMEA, Latin America, and Asia Pacific") Furniture Solutions, Specialty and Consumer. The North American Furniture Solutions segment includes the operations associated with the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, throughout the United States and Canada. The business associated with the company's owned contract furniture dealers is also included in the North American Furniture Solutions segment. The ELA Furniture Solutions segment includes EMEA, Latin America and Asia-Pacific. ELA includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in these geographic regions. The Specialty 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 Herman Miller Collection products. The Consumer segment includes operations associated with the sale of modern design furnishings and accessories to third party retail distributors, as well as direct to consumer sales through eCommerce and Design Within Reach retail studios.

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 reportable operating segments are the same as those of the company.

The following is a summary of certain key financial measures for the respective fiscal periods indicated.

	Three Months Ended						Six Months Ended
(In millions)	December 2, 2017			December 3, 2016			December 2, 2017			December 3, 2016
Net Sales:
North American Furniture Solutions	$	330.5		$	313.9		$	659.0		$	661.1
ELA Furniture Solutions	113.0			107.6			206.4			204.9
Specialty	74.4			76.4			149.5			155.1
Consumer	86.7			79.6			169.9			155.0
Total	$	604.6		$	577.5		$	1,184.8		$	1,176.1
Operating Earnings (Loss):
North American Furniture Solutions	$	45.1		$	38.9		$	93.8		$	89.8
ELA Furniture Solutions	12.3			12.1			18.9			20.6
Specialty	2.1			5.2			3.7			10.9
Consumer	1.0			1.8			1.3			2.6
Corporate	(10.5		)	(8.4		)	(18.6		)	(17.9		)
Total	$	50.0		$	49.6		$	99.1		$	106.0

(In millions)	December 2, 2017		June 3, 2017
Total Assets:
North American Furniture Solutions	$	500.4	$	533.6
ELA Furniture Solutions	259.4		230.3
Specialty	176.9		157.9
Consumer	286.0		276.4
Corporate	128.4		108.1
Total	$	1,351.1	$	1,306.3