Restructuring Activities

9 Months Ended

Nov. 23, 2012

RESTRUCTURING ACTIVITIES

In Q2 2013, we announced plans to integrate PolyVision's global technology business into the Steelcase Education Solutions group. We currently estimate the cash restructuring costs associated with this action will be approximately $4, with approximately $2 related to employee termination costs and $2 of business exit and other related costs. We incurred $1.1 of employee termination costs and $0.5 of business exit and other related costs in the Americas segment during the three months ended November 23, 2012. We expect these restructuring actions to be substantially complete by the end of Q1 2014.

In Q4 2011, we announced the planned closure of three manufacturing facilities in the Americas segment as part of our ongoing efforts to improve the fitness of our business and strengthen the Company’s long-term competitiveness. We have moved production within these facilities to other Steelcase locations in North America and expect the manufacturing consolidation will be substantially complete by the end of 2013. We currently estimate the cash restructuring costs associated with these actions will be approximately $42, with approximately $29 related to employee termination costs and approximately $13 related to business exit and other related costs. We incurred $0.9 and $3.7 of employee termination costs during the three and nine months ended November 23, 2012, respectively. We incurred $2.1 and $7.3 of business exit and other related costs during the three and nine months ended November 23, 2012, respectively. During 2012 and 2011, we incurred restructuring costs related to these plant closures of $17.9 and $10.1, respectively.

Restructuring costs are summarized in the following table:



	Three Months Ended					Nine Months Ended
Restructuring Costs	November 23, 2012		November 25, 2011			November 23, 2012		November 25, 2011
Cost of sales
Americas	$	3.2	$	2.9		$	11.4	$	15.4
EMEA	0.1		0.4			0.4		8.2
Other	—		—			—		1.1
	3.3		3.3			11.8		24.7
Operating expenses
Americas	1.8		0.5			1.8		0.5
EMEA	0.4		0.2			0.4		1.0
Other	0.5		(0.2		)	0.8		(0.2		)
	2.7		0.5			3.0		1.3
Total	$	6.0	$	3.8		$	14.8	$	26.0

Below is a summary of the net additions, payments and adjustments to the restructuring reserve balance for the nine months ended November 23, 2012:



Restructuring Reserve	Employee Termination Costs			Business Exits and Related Costs			Total
Reserve balance as of February 24, 2012	$	12.9		$	4.7		$	17.6
Additions	6.2			8.6			14.8
Payments	(11.8		)	(10.7		)	(22.5		)
Adjustments	(0.2		)	0.2			—
Reserve balance as of November 23, 2012	$	7.1		$	2.8		$	9.9

The employee termination costs reserve balance as of November 23, 2012 primarily relates to costs associated with the Q4 2011 announcement.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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