INVESTMENTS IN UNCONSOLIDATED AFFILIATES

We enter into joint ventures and other equity investments from time to time to expand or maintain our geographic presence, support our distribution network or invest in new business ventures, complementary products and services. Equity method investments were $47.5 and $41.9 as of February 22, 2013 and February 24, 2012, respectively. Cost method investments were $5.8 as of February 22, 2013 and February 24, 2012. Our investments in unconsolidated affiliates primarily consist of IDEO, dealer relationships and manufacturing joint ventures. Our investments in unconsolidated affiliates and related direct ownership interests are summarized below:



Investments in Unconsolidated Affiliates	February 22, 2013			February 24, 2012
Investments in Unconsolidated Affiliates	Investment Balance		Ownership Interest	Investment Balance		Ownership Interest
IDEO	$	16.1	20%	$	14.5	20%
Dealer relationships:
Equity method investments	18.4		20%-40%	20.1		20%-40%
Cost method investments	5.8		Less than 10%	5.8		Less than 10%
Total dealer relationships	24.2			25.9
Manufacturing joint ventures:
Equity method investments	8.3		25%-49%	7.3		25%-49%
Other	4.7		8%-39%	—		9%
Total investments in unconsolidated affiliates	$	53.3		$	47.7

Our equity in earnings of unconsolidated affiliates is recorded in Other income, net on the Consolidated Statements of Income and is summarized below:



Equity in earnings of unconsolidated affiliates	Year Ended
Equity in earnings of unconsolidated affiliates	February 22, 2013			February 24, 2012		February 25, 2011
IDEO	$	2.6		$	2.5	$	0.6
Dealer relationships	3.9			3.1		2.7
Manufacturing joint ventures	3.4			2.7		3.0
Other	(0.5		)	—		—
Total equity in earnings of unconsolidated affiliates	$	9.4		$	8.3	$	6.3

IDEO

IDEO, LLC is an innovation and design firm that uses a human-centered, design-based approach to generate new offerings and build new capabilities for its customers. IDEO serves Steelcase and a variety of other organizations within consumer products, financial services, healthcare, information technology, government, transportation and other industries. We began our collaborative relationship with IDEO in 1996 to generate innovative solutions and customer experience insights, and we owned a controlling equity interest in IDEO from January 1996 to December 2010. In December 2010, certain members of the management of IDEO purchased a controlling equity interest in IDEO. We retained a 20% equity interest in IDEO, and we have continued our collaborative relationship after this ownership transition. As a result, we deconsolidated the operations of IDEO in Q4 2011 and began to record our share of IDEO’s earnings as equity in earnings of unconsolidated affiliates in Other income, net on the Consolidated Statements of Income. See Note 19 for additional information.

Dealer Relationships

We have invested in dealers from time to time to expand or maintain our geographic presence and support our distribution network. These dealer relationships may include project financing, asset-based lending and term financing as a result of the dealer facing financial difficulty or facing difficulty in transitioning to new ownership. We choose to make financial investments in these dealers to address these risks or continue our presence in a region as establishing new dealers in a market can take considerable time and resources.

Manufacturing Joint Ventures

We have entered into manufacturing joint ventures from time to time to expand or maintain our geographic presence. The manufacturing joint ventures primarily consist of Steelcase Jeraisy Company Limited, which is located in Saudi Arabia and is engaged in the manufacturing of wood and metal office furniture systems, accessories and related products for the region.

The summarized financial information presented below represents the combined accounts of our equity method investments in unconsolidated affiliates.



Consolidated Balance Sheets	February 22, 2013		February 24, 2012
Total current assets	$	143.5	$	125.9
Total non-current assets	38.2		35.0
Total assets	$	181.7	$	160.9
Total current liabilities	$	82.1	$	69.3
Total long-term liabilities	19.9		27.9
Total liabilities	$	102.0	$	97.2



Statements of Income	Year Ended
Statements of Income	February 22, 2013		February 24, 2012		February 25, 2011
Revenue	$	515.9	$	472.9	$	294.4
Gross profit	151.6		140.6		69.0
Income before income tax expense	34.4		33.1		24.0
Net income	31.6		30.2		20.6

Dividends received from our investments in unconsolidated affiliates were $5.3, $5.8 and $2.4 in 2013, 2012 and 2011, respectively. We had sales to our investments in unconsolidated affiliates of approximately $247.3, $219.3 and $182.8 in 2013, 2012 and 2011, respectively. Amounts due from our investments in unconsolidated affiliates were $24.4 and $15.9 as of February 22, 2013 and February 24, 2012, respectively.