v3.26.3
Short-Term Borrowings and Long-Term Debt
 3 Months Ended
Aug. 29, 2026
Debt Disclosure [Abstract]  
Short-Term Borrowings and Long-Term Debt Short-Term Borrowings and Long-Term Debt
Short-term borrowings and long-term debt as of August 29, 2026, and May 30, 2026, consisted of the following:
(In millions)
August 29, 2026
May 30, 2026
Syndicated revolving line of credit, due April 2030
$
311.5 
$
309.2 
Term Loan A, 5.4809%, due April 2030
390.0 
392.5 
Term Loan B, 5.7309%, due August 2032
545.9 
547.3 
Accounts Receivable Securitization Facility, 4.7584% due September 2028
56.5 
42.9 
Supplier financing program
2.7 
1.8 
Finance lease liability
0.8 
0.9 
Total debt
$
1,307.4 
$
1,294.6 
Less: Unamortized discount and issuance costs
(8.6)
(8.9)
Less: Short-term borrowings and current portion of long-term debt
(28.4)
(25.1)
Long-term debt
$
1,270.4 
$
1,260.6 
The Company maintains a senior secured credit agreement consisting of a $725.0 million revolving credit facility maturing in April 2030, a Term Loan A facility maturing in April 2030, and a Term Loan B facility maturing in August 2032. The indebtedness incurred under the revolving line of credit and term loans is secured by substantially all of the Company’s tangible and intangible assets, including, without limitation, the Company’s intellectual property. The Company’s direct and indirect wholly-owned domestic subsidiaries have also guaranteed the obligations of the Company and the foreign borrowers under the revolving line of credit and term loans and pledged substantially all of their tangible and intangible assets as security for their obligations under such guarantee.
During the three months ended August 29, 2026, the Company made aggregate principal payments of $2.5 million and $1.4 million on Term Loan A and B, respectively. The Company was in compliance with all debt covenants as of August 29, 2026.
Available borrowings under the syndicated revolving line of credit were as follows for the periods indicated:
(In millions)
August 29, 2026
May 30, 2026
Syndicated revolving line of credit borrowing capacity
$
725.0 
$
725.0 
Less: Borrowings under the syndicated revolving line of credit
311.5 
309.2 
Less: Outstanding letters of credit
11.7 
11.8 
Available borrowings under the syndicated revolving line of credit
$
401.8 
$
404.0 
Accounts Receivable Securitization Facility
In September 2025, the Company entered into a three-year accounts receivable securitization facility (the "Facility"), scheduled to terminate September 2028, in the aggregate amount of up to $90.0 million. Under the terms of the Facility, the Company sells, on a revolving basis, certain accounts receivables to MillerKnoll Receivables LLC, a direct wholly-owned, bankruptcy-remote special purpose entity (the "SPE") of the Company that, in turn, uses the receivables to secure the borrowings, the proceeds of which will be used for general working capital purposes. The SPE is included in the Condensed Consolidated Financial Statements and therefore the accounts receivable owned by it are included in our Condensed Consolidated Balance
Sheets. However, the accounts receivable owned by the SPE are separate and distinct from our other assets and are not available to other creditors should the Company become insolvent. As of August 29, 2026, the SPE held $56.5 million of accounts receivable. The securitization is treated as a secured borrowing for accounting purposes. The outstanding balance as of August 29, 2026 is reported in Long-term debt in the Condensed Consolidated Balance Sheets.
Supplier Financing Program
The Company has an agreement with a third-party financial institution that allows certain participating suppliers the ability to finance payment obligations of the Company. Under this program, participating suppliers may finance payment obligations of the Company, prior to their scheduled due dates, at a discounted price to the third-party financial institution.
The Company has lengthened the payment terms for certain suppliers that have chosen to participate in the program. As a result, certain amounts due to suppliers have payment terms that are longer than standard industry practice and as such, these amounts have been excluded from Accounts payable in the Condensed Consolidated Balance Sheets as the amounts have been accounted for by the Company as current debt, within Short-term borrowings and current portion of long-term debt. As of August 29, 2026, and May 30, 2026, the liability related to the supplier financing program was $2.7 million and $1.8 million, respectively.