Divestitures, Acquisitions, Ownership Transitions And Deconsolidations

12 Months Ended

Feb. 22, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

DIVESTITURES, ACQUISITIONS AND OWNERSHIP TRANSITIONS

Divestiture of PolyVision Division

In Q2 2012, we completed the sale of PolyVision’s remaining low margin whiteboard fabrication business in Europe to a third party for proceeds totaling $2.3. The transaction included the sale of PolyVision SAS (France) and PolyVision A/S (Denmark) and resulted in a loss of $0.9 recorded in Restructuring costs on the Consolidated Statements of Income.

Our Consolidated Statements of Income included the following related to PolyVision SAS and PolyVision A/S:

PolyVision SAS and PolyVision A/S	Year Ended
	February 24,   2012		February 25,   2011
Revenue	$	8.6	$	17.1
Gross profit	1.6		3.5
Operating income	0.1		0.6

Dealer Acquisition

In Q1 2012, Red Thread Spaces LLC (“Red Thread”), formerly known as Office Environments of New England, LLC, a wholly-owned subsidiary of Steelcase Inc., acquired substantially all the assets of bkm Total Office (“BKM”) for cash consideration of approximately $18.7. Red Thread and BKM, both authorized Steelcase dealers, have combined to create a regional enterprise supporting workplace needs that will offer a broadened portfolio of products and services and expanded geographical coverage in New England. The final purchase price allocation resulted in goodwill and intangible assets valuations of $2.0 and $0.3, respectively. The combined dealers are included in the Americas segment. The purchase of BKM did not have a material impact on our consolidated financial statements.

IDEO Ownership Transition

In Q4 2011, certain members of the management of IDEO purchased a controlling interest in IDEO pursuant to an agreement entered into during 2008. We retained a 20% equity interest in IDEO, and we expect to continue our collaborative relationship. This transaction generated $30 of cash and resulted in a Q4 2011 pre-tax gain of $13.2 recorded in Operating Expenses on the Consolidated Statements of Income within Corporate. In Q4 2011, we deconsolidated the operations of IDEO and began recording our share of IDEO’s earnings as equity in earnings of unconsolidated affiliates in Other income (expense), net on the Consolidated Statements of Income.

For the year ended February 25, 2011, our Consolidated Statements of Income included the following related to IDEO:

IDEO	Year Ended
	February 25,   2011
Revenue	$	103.4
Gross profit	47.1
Operating income (1)	11.8

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(1) Operating income did not include variable compensation expense of approximately $7 earned by IDEO management in 2011 related to a contingent stock bonus program that was recognized and applied toward the purchase price in Q4 2011.