Item 2.05 Costs Associated With Exit or Disposal Activities
Herman Miller, Inc. (the "Company") has taken a variety of actions to
substantially reduce expenses and further enhance its liquidity in response to
the impact of the COVID-19 pandemic and related restrictions. Included among the
activities is a voluntary reduction in its North American and international
workforce as well as an involuntary reduction in its North American workforce.
Combined, these actions resulted in the elimination of approximately 300
full-time positions throughout the Company in various businesses and functions
as of May 14, 2020.
As the result of these actions, the Company projects an annualized expense
reduction of approximately $32.2 million, of which approximately twenty-seven
percent of the savings are attributable to the Company's voluntary severance
program. The Company currently expects to incur severance and related charges of
approximately $13.5 million (pre-tax) in the fourth quarter of fiscal 2020,
consisting solely of cash expenditures for employee termination and severance
costs to be paid in the Company's next fiscal year, beginning on May 31, 2020.
Depending upon the future levels of its business activities, the Company may
experience further reductions in its global workforce.
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