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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