Operating Segments

9 Months Ended

Feb. 26, 2011

Segment Reporting, Measurement Disclosures [Abstract]

Segment Reporting Disclosure [Text Block]

OPERATING SEGMENTS

During the first quarter of fiscal 2012, the company undertook an organizational realignment whereby products sold related to the consumer retail business, the Herman Miller Collection, and Geiger became the responsibility of one segment manager reporting to the chief operating decision maker. The realignment of these businesses has resulted in a new Specialty and Consumer segment. As a result, the reportable segments now consist of North American Furniture Solutions, Non-North American Furniture Solutions, and Specialty and Consumer. Prior year results have been revised to reflect this change.

The North American Furniture Solutions reportable 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 reportable segment. The Non-North American Furniture Solutions reportable segment includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings for Mexico and outside of North America. The Specialty and Consumer reportable segment includes the operations associated with the design, manufacture, and sale of high-end furniture products including Geiger wood products, Herman Miller Collection products and the North American consumer retail business.

The company also reports a “Corporate” category consisting primarily of startup business and unallocated corporate expenses including restructuring and impairment costs.

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 respective fiscal periods indicated:

	Three Months Ended						Nine Months Ended
(In millions)	March 3, 2012			February 26, 2011			March 3, 2012			February 26, 2011
Net Sales:
North American Furniture Solutions	$	280.2		$	310.7		$	932.4		$	904.2
Non-North American Furniture Solutions	77.8			67.8			250.2			207.3
Specialty and Consumer	41.8			36.3			120.9			96.2
Corporate	—			—			—			—
Total	$	399.8		$	414.8		$	1,303.5		$	1,207.7
Depreciation and Amortization:
North American Furniture Solutions	$	7.6		$	8.1		$	23.8		$	25.2
Non-North American Furniture Solutions	0.9			0.8			2.8			2.4
Specialty and Consumer	0.4			0.5			1.3			1.5
Corporate	—			—			—			—
Total	$	8.9		$	9.4		$	27.9		$	29.1
Operating Earnings (Loss):
North American Furniture Solutions	$	16.4		$	24.8		$	73.2		$	78.7
Non-North American Furniture Solutions	5.3			3.3			23.7			10.0
Specialty and Consumer	3.9			3.2			11.7			8.1
Corporate	(0.3		)	(0.2		)	(0.8		)	(5.0		)
Total	$	25.3		$	31.1		$	107.8		$	91.8
Capital Expenditures:
North American Furniture Solutions	$	4.9		$	8.3		$	12.0		$	18.6
Non-North American Furniture Solutions	0.7			1.3			2.3			3.0
Specialty and Consumer	0.3			0.1			4.8			0.2
Corporate	—			—			—			—
Total	$	5.9		$	9.7		$	19.1		$	21.8
(In millions)	March 3, 2012			May 28, 2011
Total Assets
North American Furniture Solutions	$	599.2		$	611.6
Non-North American Furniture Solutions	157.4			142.4
Specialty and Consumer	59.1			54.0
Corporate	—			—
Total	$	815.7		$	808.0
Total Goodwill
North American Furniture Solutions	$	102.7		$	103.3
Non-North American Furniture Solutions	5.9			6.1
Specialty and Consumer	1.0			1.0
Corporate	—			—
Total	$	109.6		$	110.4

The accounting policies of the reportable 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 company has determined that allocation based on relative net sales is most appropriate for all expenses. The majority of corporate costs are allocated to the operating segments; however, certain 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. For example, restructuring charges that are reflected in operating earnings are allocated to the “Corporate” category.