Reportable Segments

9 Months Ended

Nov. 24, 2023

Reportable Segments [Abstract]

Reportable Segments

REPORTABLE SEGMENTS

As of the end of Q1 2024, we realigned our reportable segments for financial reporting purposes as a result of changes in how we monitor business performance and allocate resources to support our top strategic priorities. During Q1 2024, we simplified our internal reporting to summarize the results of all brands by geography including utilization of previously unallocated Corporate expenses. This change is parallel to the organizational structure that is used by our Chief Executive Officer in the capacity as chief operating decision maker ("CODM") for making operating and investment decisions and assessing business performance.

The operating segments regularly reviewed by the CODM are (1) the Americas, (2) Europe, the Middle East and Africa ("EMEA") and (3) Asia Pacific. Asia Pacific serves customers in Australia, China, India, Japan, Korea and other countries in Southeast Asia. We primarily review and evaluate revenue, gross profit and operating income (loss) by these segments in our internal review processes and reporting. We also allocate resources among these segments primarily based on revenue, gross profit and operating income (loss). Total assets by segment include manufacturing and other assets associated with each segment.

For purposes of segment reporting externally, we have aggregated the EMEA and Asia Pacific operating segments as an International segment based upon their similarity in certain quantitative and qualitative characteristics as defined in the Accounting Standards Codification ("ASC") 280, Segment Reporting. We evaluated the economic similarity of these operating segments including patterns and trends for revenue, gross profit and operating income (loss) in addition to the similarity in the nature of products and services, types of customers, and production and distribution processes in these regions. We concluded that these operating segments met the criteria for aggregation consistent with the basic principles and objectives of segment reporting described in ASC 280. The change in our reportable segments did not result in a change to our reporting units for purposes of goodwill impairment testing.

The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a comprehensive portfolio of furniture, architectural, textile and surface imaging products that are marketed to corporate, government, healthcare, education and retail customers primarily through the Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System and Viccarbe brands.

The International segment serves customers in EMEA and Asia Pacific with a comprehensive portfolio of furniture and architectural products that are marketed to corporate, government, education and retail customers primarily through the Steelcase, Coalesse, Orangebox, Smith System and Viccarbe brands.

As required by ASC 280, all presented segment data reflects the reclassification of previously reported segment data. Revenue, gross profit and operating income (loss) for the three and nine months ended November 24, 2023 and November 25, 2022 and total assets and goodwill as of November 24, 2023 and February 24, 2023 by segment are presented in the following tables which reflect the realigned segments:

	Three Months Ended				Nine Months Ended
Reportable Segment Statement of Income Data	November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Revenue
Americas	$	586.1	$	619.8	$	1,838.2	$	1,840.6
International	191.8		207.1		546.2		590.3
	$	777.9	$	826.9	$	2,384.4	$	2,430.9
Gross Profit
Americas	$	192.8	$	181.2	$	612.3	$	526.2
International	59.5		56.6		158.0		154.0
	$	252.3	$	237.8	$	770.3	$	680.2
Operating Income (Loss)
Americas	$	37.2	$	17.3	$	117.0	$	44.2
International	6.6		3.2		(24.9)		(7.4)
	$	43.8	$	20.5	$	92.1	$	36.8

Reportable Segment Balance Sheet Data	November 24, 2023		February 24, 2023
Total assets
Americas	$	1,663.1	$	1,631.2
International	583.8		571.6
	$	2,246.9	$	2,202.8
Goodwill
Americas	$	266.2	$	268.3
International	8.7		8.5
	$	274.9	$	276.8