Aquisitions and Divestitures

9 Months Ended

Mar. 02, 2013

Acquisitions and Divestitures [Abstract]

AcquisitionsAndDispositionsDisclosure [Text Block]

ACQUISITIONS AND DIVESTITURES

Acquisitions

On April 3, 2012, the company acquired POSH Office Systems Ltd. ("POSH"). POSH is a Hong Kong-based designer and distributor of office furniture systems, freestanding furniture, seating, and filing and storage with distribution in Hong Kong and China. The allocation of the purchase price was finalized during the third quarter of fiscal 2013, as a result of which no significant changes were made to the previously recorded amounts. The consideration transferred to acquire POSH includes $47.1 million in net cash transferred during fiscal 2012 and an additional component of performance based contingent consideration ranging between $1.0 million and $13.0 million to be earned over the next three years. The company also made a $1.7 million cash payment during the second quarter of fiscal 2013 as final settlement of the cash purchase price for the company's acquisition of POSH. This payment resulted in adjustments to the preliminary purchase accounting resulting in an increase in goodwill and accrued liabilities.

Divestitures

During the third quarter of fiscal 2013, the company completed the sale of one wholly-owned contract furniture dealership in Florida. A gain on sale of $1.0 million was recognized as a result of the transaction. Furthermore, the company completed the sale of one wholly-owned contract furniture dealership in California during the second quarter of fiscal year 2012, as well as two wholly-owned contract furniture dealerships in Texas and Colorado during the first quarter of fiscal year 2012. The effect of these transactions on the company's consolidated financial statements was not material.