MillerKnoll, Inc. (NASDAQ:MLKN) Q3 2023 Earnings Conference Call March 22, 2023 5:30 PM ET Company Participants Carola Mengolini - Vice President, Investor Relations Andi Owen - Chief Executive Officer Jeff Stutz - Chief Financial Officer John Michael - President, Americas Contracts Debbie Propst - President, Global Retail Conference Call Participants Greg Burns - Sidoti & Company Reuben Garner - Benchmark Company Budd Bugatch - Water Tower Research Steven Ramsey - Thompson Alex Fuhrman - Craig-Hallum Capit ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 3, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-15141 __________________________________________ MillerKnoll, Inc. (Exact name of ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2023 were just under $1.1 billion, an increase of 4% on a reported basis and 8% organically compared to the same quarter last year [23] - Consolidated orders totaled $1 billion, which is 12.5% below prior year levels on a reported basis and 9% lower organically [23] - Adjusted diluted earnings per share came in at $0.46, compared to $0.54 in the same period last year [31] Business Line Data and Key Metrics Changes - In the Americas Contract segment, sales were $530 million, an increase of 6% year-over-year, while order levels decreased 17% to $474 million [25] - Global Retail segment sales were $272 million, a decrease of 3% on a reported basis but up 1% organically; new orders totaled $298 million, down 8% on a reported basis [26] - International Contract & Specialty segment sales totaled $265 million, reflecting a 7% increase on a reported basis and up 15% organically [28] Market Data and Key Metrics Changes - Strong order growth was noted in India, South Korea, and the Middle East, while there was softening in China, France, and Ireland [29] - The Americas backlog was down year-on-year by about 21%, standing at approximately $456 million at the end of Q2 [94] Company Strategy and Development Direction - The company emphasizes diversifying its business model, expanding its global retail business to over $1 billion in annual revenue, and leveraging synergies from the acquisition of Knoll [9][10] - The focus remains on contract wins, retail success, and delivering shareholder commitments despite macroeconomic uncertainties [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to reach customers through various channels and markets, despite current macroeconomic challenges [20] - The company anticipates a gradual improvement in retail profitability over the next two quarters, aiming for high single-digit operating margins by the end of the fiscal year [27][41] Other Important Information - The company reported a liquidity position of $428 million at the end of Q2, with $60 million generated from cash flow operations during the quarter [32] - The company is proactively taking steps to improve near-term profit and cash flow outlook, expecting annualized expense reductions between $30 million and $35 million [34] Q&A Session Summary Question: Can you discuss the inventory issues in the Retail segment? - Management explained that high demand and supply chain difficulties led to inventory buildup, which is being addressed through a promotional strategy and is expected to normalize by Q4 [38][41] Question: What is the outlook for order strength in the Retail segment? - Management noted that while orders have softened in the residential home furnishings market due to macroeconomic uncertainty, they believe they are capturing a larger market share compared to competitors [42][44] Question: How does the company view the total addressable market in U.S. core office furnishings? - Management acknowledged the challenges but emphasized the strategic position gained through the acquisition of Knoll and the diversification of their business model [46][49] Question: Can you elaborate on the progression of order patterns in North America? - Management indicated that order activity has been somewhat flat, with a notable decline in October and November, but recent days have shown improvement [56][57] Question: What are the expectations for price-cost dynamics in the upcoming quarter? - Management expects incremental positive benefits from net pricing and anticipates a shift to positive commodity costs, although production leverage may be a headwind [65][66] Question: What is the outlook for the International segment? - Management highlighted the faster return to office in international markets and the potential for growth in regions where they currently lack presence [80][84]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 3, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-15141 __________________________________________ MillerKnoll, Inc. (Exact name of ...

MillerKnoll, Inc. (NASDAQ:MLKN) Q1 2023 Earnings Conference Call September 28, 2022 5:30 PM ET Company Participants Ken Diptee - Vice President of Investor Relations Andrea Owen - President & Chief Executive Officer Jeffrey Stutz - Chief Financial Officer John Michael - President, North Americas Contract Debbie Propst - President, Global Retail Conference Call Participants Budd Bugatch - Water Tower Research Greg Burns - Sidoti & Company Alex Fuhrman - Craig-Hallum Capital Group Operator Ladies and gentleme ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ☒ 1934 For the fiscal year ended May 28, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-15141 __________________________________________ MillerKnoll, Inc. (Exact name of registrant a ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q4 2022 reached $1.1 billion, reflecting a 77% increase on a reported basis and a 23% increase organically compared to the prior year [21] - For the full fiscal year, net sales totaled $3.95 billion, a year-over-year increase of 60%, with organic sales increasing by 14% [28] - Gross margin at the consolidated level was 34.8%, down 160 basis points from the same quarter last year, but improved sequentially by 180 basis points [26] - Reported diluted earnings per share were $0.28, while adjusted earnings per share were $0.58, compared to $0.59 a year ago [27] Business Line Data and Key Metrics Changes - The international business achieved record sales of $136 million in Q4, an increase of 28% on a reported basis and up 37% organically [21] - Retail segment orders declined by 12% compared to last year, as consumers shifted spending towards travel and experiences [23] - Despite the decline, new orders for the retail segment were up 63% on a two-year stack basis compared to Q4 of fiscal 2020 [24] Market Data and Key Metrics Changes - The backlog was reported to be 45% higher than last year organically, indicating strong demand [30] - Customer visits and dealer sentiment improved significantly, with many customers actively seeking to redesign their spaces [39][41] Company Strategy and Development Direction - The company aims to deliver $120 million in cost synergies, having captured $66 million in run rate cost synergies by the end of fiscal 2022 [7] - Focus on creating a differentiated omnichannel customer experience and accelerating growth across channels and geographies [17] - The company is expanding its international dealer network to cross-sell its brands, with a pilot including 32 dealers from 17 countries [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties from a position of strength, emphasizing the unique opportunities available [31] - The company is optimistic about the integration of its brands and expects to see continuous improvement in margins as price increases take effect [105] Other Important Information - The company introduced its 2030 sustainability goals, targeting a 50% reduction in carbon footprint and increased use of recycled materials [15] - The company opened eight new Herman Miller stores in Q4, including three in Japan, and plans to open three more in Q1 of fiscal 2023 [25] Q&A Session Summary Question: Supply chain normalization and lead times - Management noted that while internal lead times have improved, some suppliers still face issues, particularly affecting the retail business [34][36] Question: Customer visits and dealer sentiment - Increased customer visits are attributed to a return to collaborative work environments, with visits being more intentional and project-focused [39][41] Question: Pricing and cost situation - Management confirmed plans for additional price increases to address inflationary pressures, with expectations for margin improvement as these take effect [50][54] Question: Retail business outlook - Management anticipates steady performance in the retail business despite macroeconomic pressures, with ongoing investments in product expansion and technology [92][96] Question: Contract business demand - Demand remains strong, with no indicators of softening, supported by positive metrics like the Architectural Billings Index [118][120]

Financial Performance - Net loss for the nine months ended February 26, 2022, was $46.6 million, a significant decline from net earnings of $169.5 million for the same period in the previous year[12]. - For the nine months ended February 26, 2022, MillerKnoll reported net earnings of $73.0 million, a decrease of 61.5 million compared to the previous period[13]. - For the three months ended February 26, 2022, net earnings attributable to MillerKnoll, Inc. were $12.6 million, a decrease of 69.6% compared to $41.5 million for the same period in 2021[68]. - The total operating earnings for the nine months ended February 26, 2022, were reported at a loss of $22.5 million, a decline from operating earnings of $221.5 million for the same period in the previous year[116]. Revenue and Sales - For the three months ended February 26, 2022, total net sales were $1,029.5 million, a 74.4% increase from $590.5 million for the same period in 2021[31]. - For the nine months ended February 26, 2022, total net sales reached $2,845.5 million, up 54.2% from $1,843.6 million in the prior year[31]. - The Americas Contract segment generated $1,052.0 million in net sales for the nine months ended February 26, 2022, compared to $1,008.0 million in the same period of 2021, reflecting a 4.4% increase[36]. - The Knoll segment contributed $336.9 million in net sales for the three months ended February 26, 2022, with no prior year comparison available due to the acquisition[36]. - The International Contract segment saw net sales increase to $347.4 million for the nine months ended February 26, 2022, up from $293.5 million, marking a growth of 18.3%[116]. - The Global Retail segment achieved net sales of $635.4 million for the nine months ended February 26, 2022, compared to $542.1 million, an increase of 17.2%[116]. Assets and Liabilities - Total assets increased to $4,517.7 million as of February 26, 2022, compared to $2,061.9 million on May 29, 2021, reflecting a growth of approximately 118%[11]. - The company had total liabilities of $2,993.7 million as of February 26, 2022, compared to $1,135.3 million as of May 29, 2021[11]. - The carrying value of the Company's long-term debt as of February 26, 2022, was $1,434.0 million, with a fair value of $1,308.5 million[77]. - The total fair value of cash equivalents as of February 26, 2022, was $28.0 million, down from $162.2 million in May 2021[81]. Equity and Stock - Total stockholders' equity increased to $1,455.9 million from $849.6 million, representing a growth of approximately 71%[11]. - The company declared dividends of $0.1875 per share, totaling $14.3 million for the period[14]. - The company issued common stock worth $6.8 million during the nine months, compared to $3.9 million in the previous year[12]. - The company repurchased and retired common stock totaling $11.0 million during the period[13]. - As of February 26, 2022, the total number of common shares outstanding was 75,798,552[14]. Acquisitions and Integration - MillerKnoll completed the acquisition of Knoll, Inc. on July 19, 2021, which has been included in the financial results since the acquisition date[20]. - The total consideration transferred for the acquisition of Knoll was approximately $1,887.3 million, which included cash consideration of $1,176.6 million and share consideration valued at $688.3 million[45]. - Goodwill recorded from the acquisition of Knoll was $941.4 million, primarily attributed to the assembled workforce and anticipated operational synergies[48]. - Integration costs related to the Knoll merger amounted to $101.7 million for the nine months ended February 26, 2022, including $49.9 million in severance and employee benefit costs[119]. - The company expects total pre-tax costs for the Knoll Integration to not exceed approximately $100 million to $120 million[119]. Cash Flow and Operating Activities - The company reported cash used in operating activities of $57.9 million for the nine months ended February 26, 2022, compared to cash provided of $260.1 million in the prior year[12]. - Cash and cash equivalents decreased to $245.9 million from $396.4 million, representing a decline of approximately 38%[12]. - The company recognized a loss on extinguishment of debt of approximately $13.4 million related to the repayment of private placement notes due May 20, 2030[103]. Inventory and Receivables - Inventories rose significantly to $520.8 million, compared to $213.6 million, marking an increase of approximately 143%[11]. - Accounts receivable increased to $313.8 million, up from $204.7 million, indicating a growth of about 53%[11]. Tax and Compliance - The effective tax rate for the three months ended February 26, 2022, was 15.6%, down from 22.9% for the same period in 2021, primarily due to a pre-tax loss adjustment[71]. - The effective tax rate for the nine months ended February 26, 2022, was 19.8%, a decrease from 22.7% in the same period of 2021, attributed to a pre-tax book loss and non-deductible acquisition costs[72]. - The company recognized a liability for uncertain tax positions of $2.7 million as of February 26, 2022, compared to $2.1 million in May 2021[74]. Other Comprehensive Income - Other comprehensive loss for the period was $93.0 million, reflecting a decrease in accumulated other comprehensive loss[14]. - The company recognized a pre-tax gain of $2.0 million from the sale of a wholly-owned contract furniture dealership in Toronto, Canada, for cash consideration of $2.8 million[55].

MillerKnoll, Inc. (NASDAQ:MLKN) Q3 2022 Earnings Conference Call March 29, 2022 5:30 PM ET CompanyParticipants Kevin Veltman - Vice President of Investor Relations & Treasurer Andrea Owen - President & Chief Executive Officer Jeffrey Stutz - Chief Financial Officer John Michael - President of North America Contract Conference Call Participants Steven Ramsey - Thompson Research Greg Burns - Sidoti & Company Reuben Garner - Benchmark Alex Fuhrman - Craig-Hallum Capital Rudy Yang - Berenberg Operator Good even ...

[Part I — Financial Information](index=5&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) [Item 1: Financial Statements (Unaudited)](index=5&type=section&id=Item%201%3A%20Financial%20Statements%20(Unaudited)) This section presents MillerKnoll, Inc.'s unaudited condensed consolidated financial statements, reflecting the Knoll acquisition [Note 1: Description of Business and Basis of Presentation](index=11&type=section&id=Note%201%3A%20Description%20of%20Business%20and%20Basis%20of%20Presentation) MillerKnoll, Inc. acquired Knoll, Inc. on July 19, 2021, and reorganized its reportable segments - On July 19, 2021, the company acquired Knoll, Inc. and changed its name from Herman Miller, Inc. to MillerKnoll, Inc. on November 1, 2021[17](index=17&type=chunk) - Effective May 30, 2021, the company reorganized its reportable segments into: Global Retail, Americas Contract, International Contract, and Knoll[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Note 5: Acquisitions](index=15&type=section&id=Note%205%3A%20Acquisitions) This note details the July 19, 2021 acquisition of Knoll, Inc. for approximately $1.89 billion, resulting in $943.7 million goodwill Preliminary Acquisition Consideration for Knoll, Inc. | Consideration Type | Value (in millions) | | :--- | :--- | | Cash Consideration | $543.9 | | Knoll Preferred Stock | $254.4 | | Settlement of Knoll's debt | $376.9 | | Share Consideration (15,843,921 shares) | $688.3 | | Replacement Share-Based Awards | $22.4 | | **Total Preliminary Fair Value** | **$1,887.3** | Preliminary Fair Value of Net Assets Acquired | (In millions) | Fair Value | | :--- | :--- | | Total assets acquired | $2,634.1 | | Total liabilities assumed | $746.8 | | **Net Assets Acquired** | **$1,887.3** | | Goodwill | $943.7 | - Goodwill of **$943.7 million** was recorded in the Knoll segment and is primarily attributed to the assembled workforce and anticipated operational synergies. It is not expected to be tax-deductible[40](index=40&type=chunk) - From the acquisition date (July 19, 2021) to November 27, 2021, Knoll contributed **$492.7 million** in revenue and a net loss of **$73.3 million** to the consolidated results[42](index=42&type=chunk)[43](index=43&type=chunk) [Note 14: Short-Term Borrowings and Long-Term Debt](index=25&type=section&id=Note%2014%3A%20Short-Term%20Borrowings%20and%20Long-Term%20Debt) The company secured a new credit agreement in July 2021 to finance the Knoll acquisition, significantly increasing total debt - In July 2021, to fund the Knoll acquisition, the company entered into a new credit agreement providing a **$725 million** revolving credit facility, a **$400 million** Term Loan A, and a **$625 million** Term Loan B[90](index=90&type=chunk) Total Debt Comparison | (In millions) | November 27, 2021 | May 29, 2021 | | :--- | :--- | :--- | | **Total debt** | **$1,391.2** | **$277.1** | [Note 16: Operating Segments](index=26&type=section&id=Note%2016%3A%20Operating%20Segments) Effective May 30, 2021, the company reorganized its reportable segments to include Americas Contract, International Contract, Global Retail, and Knoll - The company's reportable segments now consist of Americas Contract, International Contract, Global Retail, and Knoll. Corporate expenses are reported separately[97](index=97&type=chunk)[101](index=101&type=chunk) Segment Net Sales and Operating Earnings (Loss) for Three Months Ended Nov 27, 2021 | (In millions) | Net Sales | Operating Earnings (Loss) | | :--- | :--- | :--- | | Americas Contract | $361.5 | $6.3 | | International Contract | $125.1 | $15.2 | | Global Retail | $210.0 | $23.2 | | Knoll | $336.3 | $(20.6) | | Corporate | - | $(20.3) | | **Total** | **$1,026.3** | **$3.8** | [Note 17: Restructuring and Integration Expense](index=28&type=section&id=Note%2017%3A%20Restructuring%20and%20Integration%20Expense) Following the Knoll merger, the company initiated a multi-year integration program with expected pre-tax costs up to $100 million - The Knoll Integration program is expected to result in pre-tax costs not to exceed approximately **$100 million**[106](index=106&type=chunk) - For the six months ended November 27, 2021, the company incurred **$95.8 million** of costs related to the Knoll Integration. This includes **$46.4 million** in severance, **$15.5 million** in asset impairments, **$13.4 million** in debt-extinguishment costs, and **$20.5 million** in other integration costs[106](index=106&type=chunk) Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights | (Dollars in millions) | Three Months Ended Nov 27, 2021 | Three Months Ended Nov 28, 2020 | Six Months Ended Nov 27, 2021 | Six Months Ended Nov 28, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,026.3 | $626.3 | $1,816.0 | $1,253.0 | | **Gross margin** | $350.6 | $244.2 | $628.1 | $494.2 | | **Operating earnings (loss)** | $3.8 | $71.0 | $(49.0) | $166.4 | | **Net earnings (loss) attributable to MillerKnoll, Inc.** | $(3.4) | $51.3 | $(64.9) | $124.2 | | **Diluted earnings (loss) per share** | $(0.05) | $0.87 | $(0.92) | $2.10 | Condensed Consolidated Balance Sheets Highlights | (Dollars in millions) | November 27, 2021 | May 29, 2021 | | :--- | :--- | :--- | | **Total current assets** | $1,214.6 | $891.5 | | **Total Assets** | $4,465.9 | $2,061.9 | | **Total current liabilities** | $857.3 | $500.8 | | **Total Liabilities** | $2,960.1 | $1,135.3 | | **Total Stockholders' Equity** | $1,436.4 | $849.6 | Condensed Consolidated Statements of Cash Flows Highlights | (Dollars in millions) | Six Months Ended Nov 27, 2021 | Six Months Ended Nov 28, 2020 | | :--- | :--- | :--- | | **Net Cash (Used in) Provided by Operating Activities** | $(57.6) | $214.6 | | **Net Cash Used in Investing Activities** | $(1,133.8) | $(24.4) | | **Net Cash Provided by (Used in) Financing Activities** | $1,035.5 | $(276.9) | | **Net Decrease in Cash and Cash Equivalents** | $(169.1) | $(76.1) | [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 FY2022 financial results, highlighting increased sales due to the Knoll acquisition, declining gross margin, and integration costs [Business Overview](index=31&type=section&id=Business%20Overview) Q2 FY2022 net sales increased significantly due to the Knoll acquisition, while gross margin declined due to cost pressures and integration expenses - Net sales increased **63.9%** to **$1,026.3 million**, while organic sales (excluding Knoll and currency effects) grew **11.1%** compared to the prior year's quarter[122](index=122&type=chunk) - Gross margin decreased to **34.2%** from **39.0%** YoY, driven by commodity cost pressures, rising labor and freight expenses, and a **$4.8 million** negative impact from Knoll purchase accounting[122](index=122&type=chunk) Q2 FY2022 Earnings Per Share | Metric | Q2 FY2022 | Q2 FY2021 | % Change | | :--- | :--- | :--- | :--- | | Diluted (Loss) EPS | $(0.05) | $0.87 | (105.7)% | | Adjusted Diluted EPS* | $0.51 | $0.89 | (42.7)% | [Analysis of Results for Three and Six Months](index=35&type=section&id=Analysis%20of%20Results%20for%20Three%20and%20Six%20Months) Q2 FY2022 net sales rose by $400 million, primarily from the Knoll acquisition, while gross margin and operating expenses were impacted by costs - The **$400 million** YoY increase in Q2 net sales was primarily driven by a **$330 million** contribution from the Knoll acquisition, with the remainder from organic growth across other segments[146](index=146&type=chunk) - Q2 gross margin was negatively impacted by approximately **330 basis points** from commodity/freight costs, **70 basis points** from increased labor costs, and **50 basis points** from Knoll purchase accounting amortization[147](index=147&type=chunk)[148](index=148&type=chunk) - The **$173.6 million** increase in Q2 operating expenses included **$99 million** from Knoll's ongoing operations, **$41 million** in acquisition/integration charges, and **$11 million** in amortization of purchased intangibles[150](index=150&type=chunk) [Operating Segment Results](index=40&type=section&id=Operating%20Segment%20Results) Q2 FY2022 segment performance varied, with Americas Contract and Global Retail facing margin pressures, while International Contract showed strong growth, and Knoll reported an operating loss - **Americas Contract:** Q2 organic sales grew **3.9%**, but operating earnings fell from **$39.1 million** to **$6.3 million** due to a **760 basis point** drop in gross margin from cost pressures[158](index=158&type=chunk)[159](index=159&type=chunk) - **International Contract:** Q2 organic sales grew **23.2%**, and operating earnings increased from **$12.9 million** to **$15.2 million**, driven by strong sales volume across all geographies[160](index=160&type=chunk)[161](index=161&type=chunk) - **Global Retail:** Q2 organic sales grew **18.3%**, but operating earnings decreased from **$29.3 million** to **$23.2 million** due to a **420 basis point** drop in gross margin (freight costs) and higher operating expenses[162](index=162&type=chunk)[163](index=163&type=chunk) - **Knoll:** For Q2, the segment recorded **$336.3 million** in sales and an operating loss of **$(20.6) million**, which includes **$27 million** in integration costs and **$16 million** in amortization of acquisition-related intangibles[164](index=164&type=chunk)[165](index=165&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) Cash used in operations significantly increased for the six months ended November 27, 2021, primarily due to the Knoll acquisition and working capital changes Total Liquidity Position | (In millions) | November 27, 2021 | May 29, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $227.3 | $396.4 | | Marketable securities | $7.4 | $7.7 | | Availability under syndicated revolving line of credit | $346.5 | $265.2 | | **Total liquidity** | **$581.2** | **$669.3** | - Cash used in investing activities for the six months was **$1,133.8 million**, primarily due to the **$1,088.5 million** net cash outflow for the Knoll acquisition[173](index=173&type=chunk) - Cash provided by financing activities was **$1,035.5 million**, driven by net debt proceeds of **$1,007.0 million** and credit facility proceeds of **$587.5 million** to finance the Knoll acquisition[175](index=175&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported, with key risks remaining interest rates, commodity prices, and foreign exchange rates - There have been no material changes to market risk disclosures since the last Form 10-K. Key risks remain interest rates, commodity prices, and foreign exchange[193](index=193&type=chunk) - The principal foreign currencies in which the Company conducts business include the British pound sterling, euro, Canadian dollar, Japanese yen, Mexican peso, Hong Kong dollar, Chinese renminbi, and the Danish krone[195](index=195&type=chunk) [Item 4: Controls and Procedures](index=48&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of November 27, 2021, with Knoll's internal controls currently undergoing integration - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of November 27, 2021[196](index=196&type=chunk) - The company is in the process of integrating Knoll's internal controls over financial reporting, which is the only significant change to internal controls during the quarter[197](index=197&type=chunk) [Part II — Other Information](index=49&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Item 1: Legal Proceedings](index=49&type=section&id=Item%201%3A%20Legal%20Proceedings) There have been no material changes in legal proceedings since the last Annual Report on Form 10-K - There have been no material changes in legal proceedings since the last Annual Report on Form 10-K[199](index=199&type=chunk) [Item 1A: Risk Factors](index=49&type=section&id=Item%201A%3A%20Risk%20Factors) An updated risk factor highlights the negative impact of a continued shortage of qualified labor on the company's business and earnings - An updated risk factor was added concerning the negative impact of a continued shortage of qualified labor on the company's business, production, and earnings[201](index=201&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 84,106 shares during Q2 FY2022 under its $250 million authorization plan, with $222.3 million remaining Share Repurchase Activity for Q2 FY2022 | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | 8/29/21-9/25/21 | 25,588 | $42.34 | $224.6 | | 9/26/21-10/30/21 | 18,455 | $39.23 | $223.9 | | 10/31/21-11/27/21 | 40,063 | $38.57 | $222.3 | | **Total** | **84,106** | - | - | [Item 6: Exhibits](index=50&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q report, including corporate governance documents and Sarbanes-Oxley certifications - Exhibits filed include corporate governance documents (Articles of Incorporation, Bylaws), a compensatory plan, and Sarbanes-Oxley certifications[206](index=206&type=chunk)