Investments In Unconsolidated Affiliates

12 Months Ended

Feb. 28, 2020

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]

Investments in Unconsolidated Affiliates

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. Our investments in unconsolidated affiliates and related direct ownership interests are summarized below:

Investments in unconsolidated affiliates	February 28, 2020			February 22, 2019
	Investment Balance		Ownership Interest	Investment Balance		Ownership Interest
Equity method investments
Dealer relationships	$	29.6	25%-40%	$	28.1	25%-40%
Manufacturing joint venture	8.3		49%	10.9		49%
IDEO and other	6.0		5%-21%	6.5		5%-28%
	43.9			45.5
Cost method investments
Dealer relationship	5.8		Less than 10%	5.8		Less than 10%
Other	2.6		Less than 10%	5.6		Less than 10%
	8.4			11.4
Total investments in unconsolidated affiliates	$	52.3		$	56.9

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
	February 28, 2020		February 22, 2019		February 23, 2018
Dealer relationships	$	9.8	$	9.9	$	8.5
Manufacturing joint venture	1.4		2.8		3.3
IDEO and other	1.0		1.0		1.0
Total equity in earnings of unconsolidated affiliates	$	12.2	$	13.7	$	12.8

Dealer Relationships

We have invested in dealers from time to time to expand or maintain our geographic presence and support our distribution network.

Manufacturing Joint Ventures

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

IDEO

IDEO LP 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. During 2018, we sold a portion of our equity interest in IDEO and recorded gains of $13.9 in Other income, net on the Consolidated Statement of Income. The gains included a $10.0 premium related to a change in control of the affiliate and $3.9 on the sale of our interest. As of February 28, 2020 and February 22, 2019, we owned a 5% equity interest in IDEO.

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

Consolidated Balance Sheets	February 28, 2020		February 22, 2019
Total current assets	$	250.3	$	230.2
Total non-current assets	132.7		69.1
Total assets	$	383.0	$	299.3
Total current liabilities	$	204.2	$	143.6
Total long-term liabilities	19.6		15.5
Total liabilities	$	223.8	$	159.1

 

Statements of Income	Year Ended
	February 28, 2020		February 22, 2019		February 23, 2018
Revenue	$	838.0	$	806.4	$	708.9
Gross profit	252.6		235.6		214.7
Income before income tax expense	62.3		64.2		54.6
Net income	58.5		60.3		45.3

Supplemental Information	Year Ended
	February 28, 2020		February 22, 2019		February 23, 2018
Dividends received from unconsolidated affiliates	$	12.5	$	9.1	$	10.3
Sales to unconsolidated affiliates	305.7		302.6		254.7
Amount due from unconsolidated affiliates	14.4		11.4		12.1