Revenue from Contracts with Customers

6 Months Ended

Nov. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Disaggregated Revenue

Revenue disaggregated by contract type has been provided in the table below:



	Three Months Ended				Six Months Ended
(In millions)	November 30, 2019		December 1, 2018		November 30, 2019		December 1, 2018
Net Sales:
Single performance obligation
Product revenue	$	572.7	$	539.4	$	1,138.9	$	1,074.6
Multiple performance obligations
Product revenue	95.8		107.9		195.7		192.7
Service revenue	2.9		3.2		5.2		5.9
Other	2.8		2.1		5.4		4.1
Total	$	674.2	$	652.6	$	1,345.2	$	1,277.3

Revenue disaggregated by product type and reportable segment has been provided in the table below:



	Three Months Ended				Six Months Ended
(In millions)	November 30, 2019		December 1, 2018		November 30, 2019		December 1, 2018
North America Contract:
Systems	$	145.3	$	145.3	$	292.6	$	291.4
Seating	129.7		126.9		259.9		252.5
Freestanding and storage	108.5		98.0		220.8		185.5
Textiles	29.8		29.5		76.3		58.3
Other	37.3		35.1		59.7		68.1
Total North America Contract	$	450.6	$	434.8	$	909.3	$	855.8

International Contract:
Systems	$	20.6	$	28.4	$	44.6	$	51.1
Seating	67.0		62.1		128.3		130.8
Freestanding and storage	13.8		13.9		28.5		24.3
Other	16.8		14.1		30.6		27.8
Total International Contract	$	118.2	$	118.5	$	232.0	$	234.0

Retail:
Seating	$	68.4	$	58.1	$	129.1	$	111.8
Freestanding and storage	16.6		16.8		33.7		34.0
Other	20.4		24.4		41.1		41.7
Total Retail	$	105.4	$	99.3	$	203.9	$	187.5

Total	$	674.2	$	652.6	$	1,345.2	$	1,277.3

Refer to Note 16 of the Condensed Consolidated Financial Statements for further information related to our reportable segments.

Contract Assets and Contract Liabilities

The Company records contract assets and contract liabilities related to its revenue generating activities. Contract assets include certain receivables from customers that are unconditional as all performance obligations with respect to the contract with the customer have been completed. These amounts represent trade receivables and they are recorded within the caption “Accounts receivable, net” in the Condensed Consolidated Balance Sheets.

Contract assets also include amounts that are conditional because certain performance obligations in the contract with the customer are incomplete as of the balance sheet date. These contract assets generally arise due to contracts with the customer that include multiple performance obligations, e.g., both the product that is shipped to the customer by the Company, as well as installation services provided by independent third-party dealers. For these contracts, the Company recognizes revenue upon satisfaction of the product performance obligation. These contract assets are included in the caption "Unbilled accounts receivable" in the Condensed Consolidated Balance Sheets until all performance obligations in the contract with the customer have been satisfied.

Contract liabilities represent deposits made by customers before the satisfaction of performance obligation and recognition of revenue. Upon completion of the performance obligation(s) that the Company has with the customer based on the terms of the contract, the liability for the customer deposit is relieved and revenue is recognized. These customer deposits are included within the caption “Customer deposits” in the Condensed Consolidated Balance Sheets. During the three and six months ended November 30, 2019, the Company recognized Net sales of $22.2 million and $24.7 million related to customer deposits that were included in the balance sheet as of August 31, 2019 and June 1, 2019, respectively.