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Operating Segments
 12 Months Ended
Jun. 03, 2023
Segment Reporting [Abstract]  
Operating Segments Operating Segments
Effective as of May 29, 2022, the beginning of fiscal year 2023, the Company implemented an organizational change that resulted in a change in the reportable segments. The Company has restated historical results to reflect this change. Below is a summary of the change in reportable segments.
•The reportable segments now consist of three segments: Americas Contract ("Americas"), International Contract & Specialty ("International & Specialty"), and Global Retail ("Retail").
•The activities related to the manufacture and sale of furniture products direct to consumers and third-party retailers for the Knoll and Muuto brands that were previously reported within the Knoll segment have been moved to the Global Retail segment.
•The activities related to the manufacture and sale of furniture products in the Americas for the Knoll, Muuto and Datesweiser brands that were previously reported within the Knoll segment have been moved to the Americas Contract segment.
•The activities related to the manufacture and sale of furniture products in geographies other than the Americas for the Knoll and Muuto brands have been moved to the International Contract & Specialty segment.
•The activities related to manufacture and sale of products for the Maharam brand have been moved from the Americas Contract segment to the International Contract & Specialty segment, along with the activities of Holly Hunt, Spinneybeck, Knoll Textiles, and Edelman, which were previously reported within the Knoll segment.
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 3, 2023May 28, 2022May 29, 2021
Net sales:
Americas Contract$2,026.1  $1,929.1  $1,234.6 
International Contract and Specialty1,017.3  928.5  479.6 
Global Retail1,043.7 1,088.4 750.9 
Total$4,087.1  $3,946.0  $2,465.1 
Depreciation and amortization:
Americas Contract$87.7  $104.5  $48.4 
International Contract and Specialty33.4  52.3  20.2 
Global Retail34.0 33.8 18.6 
Corporate— — — 
Total$155.1  $190.6  $87.2 
Operating earnings (loss):
Americas Contract$99.6  $(24.0) $97.2 
International Contract and Specialty98.6  69.9  49.4 
Global Retail(15.5)134.5 138.2 
Corporate(60.4)(140.6)(52.3)
Total$122.3  $39.8  $232.5 
Capital expenditures:
Americas Contract$52.4  $52.5  $40.8 
International Contract and Specialty15.6  17.8  11.3 
Global Retail15.3 24.4 7.7 
Total$83.3  $94.7  $59.8 
Goodwill:
Americas Contract$528.4 $530.1 $160.7 
International Contract and Specialty303.0 304.3 111.2 
Global Retail390.3 $391.8 92.3 
Total$1,221.7 $1,226.2 $364.2 
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 3, 2023May 28, 2022May 29, 2021
Net sales:
Workplace$1,559.7  $1,484.4  $855.1 
Performance Seating900.7  942.8  778.3 
Lifestyle1,400.0  1,286.6  696.2 
Other (1)
226.7 232.2 135.5 
Total$4,087.1  $3,946.0  $2,465.1 
(1) “Other” primarily consists of uncategorized product sales and service sales.