QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Michigan | 38-0819050 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
901 44th Street SE | |||||||||||
Grand Rapids, | Michigan | 49508 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock | SCS | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
STEELCASE INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED November INDEX |
Page No. | ||||||||
STEELCASE INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in millions, except per share data) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||
Revenue | $ | 738.2 | $ | 617.5 | $ | 2,019.6 | $ | 1,919.1 | ||||||||||||||||||
Cost of sales | 534.6 | 437.3 | 1,454.5 | 1,339.7 | ||||||||||||||||||||||
Restructuring costs | — | 2.3 | — | 9.2 | ||||||||||||||||||||||
Gross profit | 203.6 | 177.9 | 565.1 | 570.2 | ||||||||||||||||||||||
Operating expenses | 187.7 | 168.8 | 547.1 | 498.5 | ||||||||||||||||||||||
Goodwill impairment charge | — | — | — | 17.6 | ||||||||||||||||||||||
Restructuring costs | — | 9.1 | — | 17.8 | ||||||||||||||||||||||
Operating income | 15.9 | — | 18.0 | 36.3 | ||||||||||||||||||||||
Interest expense | (6.5) | (6.6) | (19.3) | (20.7) | ||||||||||||||||||||||
Investment income | 0.1 | 0.2 | 0.4 | 1.2 | ||||||||||||||||||||||
Other income, net | 2.5 | 2.2 | 3.5 | 7.0 | ||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | 12.0 | (4.2) | 2.6 | 23.8 | ||||||||||||||||||||||
Income tax expense (benefit) | 2.4 | (6.3) | (3.6) | 4.3 | ||||||||||||||||||||||
Net income | $ | 9.6 | $ | 2.1 | $ | 6.2 | $ | 19.5 | ||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | 0.08 | $ | 0.02 | $ | 0.05 | $ | 0.17 | ||||||||||||||||||
Diluted | $ | 0.08 | $ | 0.02 | $ | 0.05 | $ | 0.17 | ||||||||||||||||||
Dividends declared and paid per common share | $ | 0.145 | $ | 0.100 | $ | 0.390 | $ | 0.270 |
STEELCASE INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in millions, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | ||||||||||||
Revenue | $ | 772.1 | $ | 786.5 | $ | 2,282.8 | $ | 2,263.3 | |||||||
Cost of sales | 520.3 | 524.6 | 1,529.8 | 1,504.3 | |||||||||||
Restructuring costs | — | — | — | 4.2 | |||||||||||
Gross profit | 251.8 | 261.9 | 753.0 | 754.8 | |||||||||||
Operating expenses | 213.3 | 207.5 | 630.4 | 604.5 | |||||||||||
Restructuring costs (benefits) | — | (0.2 | ) | — | 0.5 | ||||||||||
Operating income | 38.5 | 54.6 | 122.6 | 149.8 | |||||||||||
Interest expense | (4.3 | ) | (4.3 | ) | (13.0 | ) | (12.9 | ) | |||||||
Investment income | 0.3 | 0.4 | 1.1 | 1.2 | |||||||||||
Other income, net | 3.2 | 4.1 | 6.1 | 8.0 | |||||||||||
Income before income tax expense | 37.7 | 54.8 | 116.8 | 146.1 | |||||||||||
Income tax expense | 12.0 | 13.6 | 36.1 | 47.3 | |||||||||||
Net income | $ | 25.7 | $ | 41.2 | $ | 80.7 | $ | 98.8 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.22 | $ | 0.34 | $ | 0.68 | $ | 0.82 | |||||||
Diluted | $ | 0.22 | $ | 0.34 | $ | 0.67 | $ | 0.81 | |||||||
Dividends declared and paid per common share | $ | 0.1275 | $ | 0.1200 | $ | 0.3825 | $ | 0.3600 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||
Net income | $ | 9.6 | $ | 2.1 | $ | 6.2 | $ | 19.5 | ||||||||||||||||||
Other comprehensive income (loss), net: | ||||||||||||||||||||||||||
Unrealized gain (loss) on investments | (0.1) | 0.3 | 0.1 | 0.2 | ||||||||||||||||||||||
Pension and other post-retirement liability adjustments | 0.4 | (0.3) | 0.7 | (1.1) | ||||||||||||||||||||||
Derivative amortization | 0.3 | 0.3 | 0.7 | 0.7 | ||||||||||||||||||||||
Foreign currency translation adjustments | (13.3) | 7.2 | (25.1) | 20.7 | ||||||||||||||||||||||
Total other comprehensive income (loss), net | (12.7) | 7.5 | (23.6) | 20.5 | ||||||||||||||||||||||
Comprehensive income (loss) | $ | (3.1) | $ | 9.6 | $ | (17.4) | $ | 40.0 |
Three Months Ended | Nine Months Ended | ||||||||||||||
November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | ||||||||||||
Net income | $ | 25.7 | $ | 41.2 | $ | 80.7 | $ | 98.8 | |||||||
Other comprehensive income (loss), net: | |||||||||||||||
Unrealized gain (loss) on investments | — | (0.5 | ) | 0.3 | (0.6 | ) | |||||||||
Pension and other post-retirement liability adjustments | (2.0 | ) | (0.7 | ) | (0.5 | ) | (3.2 | ) | |||||||
Foreign currency translation adjustments | 6.3 | (18.5 | ) | 26.6 | (15.2 | ) | |||||||||
Total other comprehensive income (loss), net | 4.3 | (19.7 | ) | 26.4 | (19.0 | ) | |||||||||
Comprehensive income | $ | 30.0 | $ | 21.5 | 107.1 | 79.8 |
STEELCASE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) | |||||||
(Unaudited) | |||||||
November 24, 2017 | February 24, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 244.1 | $ | 197.1 | |||
Short-term investments | — | 73.4 | |||||
Accounts receivable, net of allowances of $11.7 and $11.2 | 347.5 | 307.6 | |||||
Inventories | 186.3 | 163.1 | |||||
Prepaid expenses | 21.5 | 19.1 | |||||
Other current assets | 47.7 | 58.9 | |||||
Total current assets | 847.1 | 819.2 | |||||
Property, plant and equipment, net of accumulated depreciation of $1,011.0 and $959.6 | 430.4 | 408.1 | |||||
Company-owned life insurance ("COLI") | 170.5 | 168.8 | |||||
Deferred income taxes | 192.8 | 179.6 | |||||
Goodwill | 107.0 | 106.7 | |||||
Other intangible assets, net of accumulated amortization of $44.4 and $43.2 | 16.3 | 16.8 | |||||
Investments in unconsolidated affiliates | 53.7 | 50.5 | |||||
Other assets | 30.7 | 42.3 | |||||
Total assets | $ | 1,848.5 | $ | 1,792.0 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 247.1 | $ | 216.8 | |||
Short-term borrowings and current maturities of long-term debt | 2.8 | 2.8 | |||||
Accrued expenses: | |||||||
Employee compensation | 114.5 | 154.3 | |||||
Employee benefit plan obligations | 29.9 | 35.0 | |||||
Accrued promotions | 29.6 | 19.0 | |||||
Customer deposits | 20.2 | 15.9 | |||||
Product warranties | 17.6 | 20.4 | |||||
Other | 74.0 | 59.2 | |||||
Total current liabilities | 535.7 | 523.4 | |||||
Long-term liabilities: | |||||||
Long-term debt less current maturities | 292.8 | 294.6 | |||||
Employee benefit plan obligations | 138.9 | 134.3 | |||||
Other long-term liabilities | 67.8 | 73.2 | |||||
Total long-term liabilities | 499.5 | 502.1 | |||||
Total liabilities | 1,035.2 | 1,025.5 | |||||
Shareholders’ equity: | |||||||
Common stock | — | — | |||||
Additional paid-in capital | 3.5 | — | |||||
Accumulated other comprehensive loss | (24.2 | ) | (50.6 | ) | |||
Retained earnings | 834.0 | 817.1 | |||||
Total shareholders’ equity | 813.3 | 766.5 | |||||
Total liabilities and shareholders’ equity | $ | 1,848.5 | $ | 1,792.0 |
STEELCASE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions) |
(Unaudited) | ||||||||||||||
November 26, 2021 | February 26, 2021 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 275.2 | $ | 489.8 | ||||||||||
Accounts receivable | 341.8 | 279.0 | ||||||||||||
Allowance for doubtful accounts | (8.5) | (8.7) | ||||||||||||
Inventories | 286.1 | 193.5 | ||||||||||||
Prepaid expenses | 35.7 | 20.9 | ||||||||||||
Income taxes receivable | 51.0 | 49.5 | ||||||||||||
Other current assets | 22.2 | 21.4 | ||||||||||||
Total current assets | 1,003.5 | 1,045.4 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $1,084.6 and $1,063.2 | 394.8 | 410.8 | ||||||||||||
Company-owned life insurance ("COLI") | 170.0 | 169.5 | ||||||||||||
Deferred income taxes | 119.7 | 113.3 | ||||||||||||
Goodwill | 242.7 | 218.1 | ||||||||||||
Other intangible assets, net of accumulated amortization of $82.4 and $73.3 | 89.1 | 90.4 | ||||||||||||
Investments in unconsolidated affiliates | 50.6 | 51.5 | ||||||||||||
Right-of-use operating lease assets | 222.7 | 225.4 | ||||||||||||
Other assets | 25.7 | 29.6 | ||||||||||||
Total assets | $ | 2,318.8 | $ | 2,354.0 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 257.8 | $ | 181.3 | ||||||||||
Short-term borrowings and current portion of long-term debt | 5.0 | 4.7 | ||||||||||||
Current operating lease obligations | 43.7 | 43.8 | ||||||||||||
Accrued expenses: | ||||||||||||||
Employee compensation | 79.9 | 90.1 | ||||||||||||
Employee benefit plan obligations | 20.6 | 24.9 | ||||||||||||
Accrued promotions | 27.2 | 27.8 | ||||||||||||
Customer deposits | 56.2 | 33.7 | ||||||||||||
Other | 100.6 | 108.7 | ||||||||||||
Total current liabilities | 591.0 | 515.0 | ||||||||||||
Long-term liabilities: | ||||||||||||||
Long-term debt less current maturities | 477.9 | 479.2 | ||||||||||||
Employee benefit plan obligations | 144.1 | 152.9 | ||||||||||||
Long-term operating lease obligations | 195.8 | 199.5 | ||||||||||||
Other long-term liabilities | 53.4 | 46.9 | ||||||||||||
Total long-term liabilities | 871.2 | 878.5 | ||||||||||||
Total liabilities | 1,462.2 | 1,393.5 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Additional paid-in capital | — | 12.5 | ||||||||||||
Accumulated other comprehensive income (loss) | (63.6) | (40.0) | ||||||||||||
Retained earnings | 920.2 | 988.0 | ||||||||||||
Total shareholders’ equity | 856.6 | 960.5 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 2,318.8 | $ | 2,354.0 |
STEELCASE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) | |||||||
Nine Months Ended | |||||||
November 24, 2017 | November 25, 2016 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 80.7 | $ | 98.8 | |||
Depreciation and amortization | 47.7 | 44.7 | |||||
Deferred income taxes | (6.3 | ) | 5.2 | ||||
Non-cash stock compensation | 15.5 | 16.6 | |||||
Equity in income of unconsolidated affiliates | (10.4 | ) | (7.3 | ) | |||
Dividends received from unconsolidated affiliates | 7.5 | 7.4 | |||||
Other | (7.5 | ) | (6.4 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (35.8 | ) | (10.2 | ) | |||
Inventories | (22.4 | ) | (14.8 | ) | |||
VAT recoverable | 8.2 | 19.3 | |||||
Other assets | 15.5 | (12.8 | ) | ||||
Accounts payable | 26.1 | 15.1 | |||||
Employee compensation liabilities | (44.2 | ) | (41.5 | ) | |||
Employee benefit obligations | (6.2 | ) | (8.3 | ) | |||
Accrued expenses and other liabilities | 26.7 | (1.8 | ) | ||||
Net cash provided by operating activities | 95.1 | 104.0 | |||||
INVESTING ACTIVITIES | |||||||
Capital expenditures | (58.3 | ) | (40.4 | ) | |||
Purchases of investments | (52.1 | ) | (94.3 | ) | |||
Liquidations of investments | 125.6 | 82.6 | |||||
Other | 15.3 | 1.6 | |||||
Net cash provided by (used in) investing activities | 30.5 | (50.5 | ) | ||||
FINANCING ACTIVITIES | |||||||
Dividends paid | (45.9 | ) | (44.1 | ) | |||
Common stock repurchases | (33.4 | ) | (48.3 | ) | |||
Excess tax benefit from vesting of stock awards | — | (0.1 | ) | ||||
Repayment of long-term debt | (2.0 | ) | (1.6 | ) | |||
Net cash used in financing activities | (81.3 | ) | (94.1 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 2.7 | (2.2 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 47.0 | (42.8 | ) | ||||
Cash and cash equivalents, beginning of period | 197.1 | 181.9 | |||||
Cash and cash equivalents, end of period | $ | 244.1 | $ | 139.1 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||
Changes in common shares outstanding: | ||||||||||||||||||||||||||
Common shares outstanding, beginning of period | 113,821,358 | 114,776,546 | 114,908,676 | 117,202,000 | ||||||||||||||||||||||
Common stock issuances | 16,109 | 21,351 | 43,406 | 48,241 | ||||||||||||||||||||||
Common stock repurchases | (1,764,083) | (44,201) | (3,991,083) | (3,288,795) | ||||||||||||||||||||||
Performance and restricted stock units issued as common stock | 104,825 | 139,114 | 1,217,210 | 931,364 | ||||||||||||||||||||||
Common shares outstanding, end of period | 112,178,209 | 114,892,810 | 112,178,209 | 114,892,810 | ||||||||||||||||||||||
Changes in additional paid-in capital (1): | ||||||||||||||||||||||||||
Additional paid-in capital, beginning of period | $ | — | $ | 1.7 | $ | 12.5 | $ | 28.4 | ||||||||||||||||||
Common stock issuances | 0.2 | 0.2 | 0.6 | 0.6 | ||||||||||||||||||||||
Common stock repurchases | — | (0.4) | (27.7) | (36.8) | ||||||||||||||||||||||
Performance and restricted stock units expense (credit) | (0.2) | 2.0 | 14.6 | 11.3 | ||||||||||||||||||||||
Additional paid-in capital, end of period | — | 3.5 | — | 3.5 | ||||||||||||||||||||||
Changes in accumulated other comprehensive income (loss): | ||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), beginning of period | (50.9) | (56.3) | (40.0) | (69.3) | ||||||||||||||||||||||
Other comprehensive income (loss) | (12.7) | 7.5 | (23.6) | 20.5 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss), end of period | (63.6) | (48.8) | (63.6) | (48.8) | ||||||||||||||||||||||
Changes in retained earnings: | ||||||||||||||||||||||||||
Retained earnings, beginning of period | 952.2 | 1,002.7 | 988.0 | 1,011.3 | ||||||||||||||||||||||
Net income | 9.6 | 2.1 | 6.2 | 19.5 | ||||||||||||||||||||||
Dividends paid | (16.7) | (11.7) | (45.9) | (31.8) | ||||||||||||||||||||||
Common stock repurchases | (23.1) | — | (26.3) | (5.9) | ||||||||||||||||||||||
Performance and restricted stock units expense (credit) | (1.8) | — | (1.8) | — | ||||||||||||||||||||||
Retained earnings, end of period | 920.2 | 993.1 | 920.2 | 993.1 | ||||||||||||||||||||||
Total shareholders' equity | $ | 856.6 | $ | 947.8 | $ | 856.6 | $ | 947.8 |
STEELCASE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) |
Nine Months Ended | ||||||||||||||
November 26, 2021 | November 27, 2020 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | 6.2 | $ | 19.5 | ||||||||||
Depreciation and amortization | 62.2 | 64.1 | ||||||||||||
Goodwill impairment charge | — | 17.6 | ||||||||||||
Restructuring costs | — | 27.0 | ||||||||||||
Deferred income taxes | (9.6) | 17.9 | ||||||||||||
Non-cash stock compensation | 13.4 | 11.9 | ||||||||||||
Equity in income of unconsolidated affiliates | (4.4) | (6.7) | ||||||||||||
Dividends received from unconsolidated affiliates | 4.7 | 5.2 | ||||||||||||
Other | (19.5) | (12.4) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (68.6) | 105.2 | ||||||||||||
Inventories | (93.4) | (16.4) | ||||||||||||
Other assets | (18.3) | (22.9) | ||||||||||||
Accounts payable | 77.5 | (47.0) | ||||||||||||
Employee compensation liabilities | (15.3) | (130.5) | ||||||||||||
Employee benefit obligations | (13.5) | (25.2) | ||||||||||||
Customer deposits | 21.3 | 30.4 | ||||||||||||
Accrued expenses and other liabilities | (1.8) | (0.5) | ||||||||||||
Net cash provided by (used in) operating activities | (59.1) | 37.2 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Capital expenditures | (45.3) | (32.1) | ||||||||||||
Proceeds from disposal of fixed assets | 17.4 | 7.3 | ||||||||||||
Acquisition, net of cash acquired | (32.6) | — | ||||||||||||
Other | 9.2 | 7.0 | ||||||||||||
Net cash used in investing activities | (51.3) | (17.8) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Dividends paid | (45.9) | (31.8) | ||||||||||||
Common stock repurchases | (54.0) | (42.7) | ||||||||||||
Borrowings on global committed bank facility | — | 250.0 | ||||||||||||
Repayments on global committed bank facility | — | (250.0) | ||||||||||||
Other | (1.6) | (2.1) | ||||||||||||
Net cash used in financing activities | (101.5) | (76.6) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1.6) | 1.8 | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (213.5) | (55.4) | ||||||||||||
Cash and cash equivalents and restricted cash, beginning of period (1) | 495.6 | 547.1 | ||||||||||||
Cash and cash equivalents and restricted cash, end of period (2) | $ | 282.1 | $ | 491.7 |
Product Category Data | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||
Americas | ||||||||||||||||||||||||||
Desking, benching, systems and storage | $ | 240.1 | $ | 202.8 | $ | 669.5 | $ | 681.9 | ||||||||||||||||||
Seating | 143.0 | 121.3 | 426.7 | 412.8 | ||||||||||||||||||||||
Other (1) | 117.2 | 92.3 | 303.7 | 286.8 | ||||||||||||||||||||||
EMEA | ||||||||||||||||||||||||||
Desking, benching, systems and storage | 62.2 | 48.5 | 158.7 | 140.3 | ||||||||||||||||||||||
Seating | 61.1 | 61.7 | 150.7 | 138.5 | ||||||||||||||||||||||
Other (1) | 44.9 | 33.1 | 121.3 | 89.9 | ||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Desking, benching, systems and storage | 13.8 | 12.4 | 39.1 | 33.5 | ||||||||||||||||||||||
Seating | 21.3 | 17.2 | 52.0 | 48.1 | ||||||||||||||||||||||
Other (1) | 34.6 | 28.2 | 97.9 | 87.3 | ||||||||||||||||||||||
$ | 738.2 | $ | 617.5 | $ | 2,019.6 | $ | 1,919.1 |
Reportable Geographic Revenue | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||
United States | $ | 474.6 | $ | 392.9 | $ | 1,327.4 | $ | 1,314.0 | ||||||||||||||||||||||||||||||
Foreign locations | 263.6 | 224.6 | 692.2 | 605.1 | ||||||||||||||||||||||||||||||||||
$ | 738.2 | $ | 617.5 | $ | 2,019.6 | $ | 1,919.1 |
Balance as of February 26, 2021 | $ | 33.7 | ||||||
Recognition of revenue related to beginning of year customer deposits | (30.7) | |||||||
Customer deposits received, net of revenue recognized during the period | 53.2 | |||||||
Balance as of November 26, 2021 | $ | 56.2 |
Computation of Earnings Per Share | Three Months Ended November 26, 2021 | Three Months Ended November 27, 2020 | ||||||||||||||||||||||||||||||||||||
Net Income | Basic Shares (in millions) | Diluted Shares (in millions) | Net Income | Basic Shares (in millions) | Diluted Shares (in millions) | |||||||||||||||||||||||||||||||||
Amounts used in calculating earnings per share | $ | 9.6 | 116.0 | 116.3 | $ | 2.1 | 117.7 | 118.0 | ||||||||||||||||||||||||||||||
Impact of participating securities | (0.3) | (3.2) | (3.2) | — | (2.9) | (2.9) | ||||||||||||||||||||||||||||||||
Amounts used in calculating earnings per share, excluding participating securities | $ | 9.3 | 112.8 | 113.1 | $ | 2.1 | 114.8 | 115.1 | ||||||||||||||||||||||||||||||
Earnings per share | $ | 0.08 | $ | 0.08 | $ | 0.02 | $ | 0.02 | ||||||||||||||||||||||||||||||
Computation of Earnings Per Share | Nine Months Ended November 26, 2021 | Nine Months Ended November 27, 2020 | ||||||||||||||||||||||||||||||||||||
Net Income | Basic Shares (in millions) | Diluted Shares (in millions) | Net Income | Basic Shares (in millions) | Diluted Shares (in millions) | |||||||||||||||||||||||||||||||||
Amounts used in calculating earnings per share | $ | 6.2 | 117.4 | 117.8 | $ | 19.5 | 117.4 | 117.7 | ||||||||||||||||||||||||||||||
Impact of participating securities | (0.2) | (3.0) | (3.0) | (0.4) | (2.5) | (2.5) | ||||||||||||||||||||||||||||||||
Amounts used in calculating earnings per share, excluding participating securities | $ | 6.0 | 114.4 | 114.8 | $ | 19.1 | 114.9 | 115.2 | ||||||||||||||||||||||||||||||
Earnings per share | $ | 0.05 | $ | 0.05 | $ | 0.17 | $ | 0.17 | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Computation of Earnings per Share | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||
Net income | $ | 25.7 | $ | 41.2 | $ | 80.7 | $ | 98.8 | |||||||
Adjustment for earnings attributable to participating securities | (0.6 | ) | (0.8 | ) | (1.6 | ) | (1.9 | ) | |||||||
Net income used in calculating earnings per share | $ | 25.1 | $ | 40.4 | $ | 79.1 | $ | 96.9 | |||||||
Weighted-average common shares outstanding including participating securities (in millions) | 118.4 | 120.4 | 119.4 | 121.1 | |||||||||||
Adjustment for participating securities (in millions) | (2.4 | ) | (2.4 | ) | (2.3 | ) | (2.4 | ) | |||||||
Shares used in calculating basic earnings per share (in millions) | 116.0 | 118.0 | 117.1 | 118.7 | |||||||||||
Effect of dilutive stock-based compensation (in millions) | 0.2 | 0.4 | 0.2 | 0.5 | |||||||||||
Shares used in calculating diluted earnings per share (in millions) | 116.2 | 118.4 | 117.3 | 119.2 | |||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.22 | $ | 0.34 | $ | 0.68 | $ | 0.82 | |||||||
Diluted | $ | 0.22 | $ | 0.34 | $ | 0.67 | $ | 0.81 | |||||||
Total common shares outstanding at period end (in millions) | 116.1 | 117.3 | 116.1 | 117.3 | |||||||||||
Anti-dilutive performance units excluded from the computation of diluted earnings per share (in millions) | 0.5 | 0.3 | 0.5 | 0.3 |
Unrealized gain (loss) on investments | Pension and other post-retirement liability adjustments | Foreign currency translation adjustments | Total | |||||||||||||
Balance as of August 25, 2017 | $ | — | $ | 14.5 | $ | (43.0 | ) | $ | (28.5 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | (0.5 | ) | 6.3 | 5.8 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (1.5 | ) | — | (1.5 | ) | ||||||||||
Net current period other comprehensive income (loss) | — | (2.0 | ) | 6.3 | 4.3 | |||||||||||
Balance as of November 24, 2017 | $ | — | $ | 12.5 | $ | (36.7 | ) | $ | (24.2 | ) |
Unrealized gain (loss) on investments | Pension and other post-retirement liability adjustments | Derivative amortization | Foreign currency translation adjustments | Total | ||||||||||||||||||||||||||||
Balance as of August 27, 2021 | $ | 0.5 | $ | (6.3) | $ | (7.2) | $ | (37.9) | $ | (50.9) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (0.1) | 0.4 | — | (13.3) | (13.0) | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | 0.3 | — | 0.3 | |||||||||||||||||||||||||||
Net other comprehensive income (loss) during the period | (0.1) | 0.4 | 0.3 | (13.3) | (12.7) | |||||||||||||||||||||||||||
Balance as of November 26, 2021 | $ | 0.4 | $ | (5.9) | $ | (6.9) | $ | (51.2) | $ | (63.6) |
Unrealized gain (loss) on investments | Pension and other post-retirement liability adjustments | Derivative amortization | Foreign currency translation adjustments | Total | ||||||||||||||||||||||||||||
Balance as of February 26, 2021 | $ | 0.3 | $ | (6.6) | $ | (7.6) | $ | (26.1) | $ | (40.0) | ||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 0.1 | 0.8 | — | (25.1) | (24.2) | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (0.1) | 0.7 | — | 0.6 | |||||||||||||||||||||||||||
Net other comprehensive income (loss) during the period | 0.1 | 0.7 | 0.7 | (25.1) | (23.6) | |||||||||||||||||||||||||||
Balance as of November 26, 2021 | $ | 0.4 | $ | (5.9) | $ | (6.9) | $ | (51.2) | $ | (63.6) |
Unrealized gain (loss) on investments | Pension and other post-retirement liability adjustments | Foreign currency translation adjustments | Total | |||||||||||||
Balance as of February 24, 2017 | $ | (0.3 | ) | $ | 13.0 | $ | (63.3 | ) | $ | (50.6 | ) | |||||
Other comprehensive income (loss) before reclassifications | 0.3 | (0.7 | ) | 26.6 | 26.2 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 0.2 | — | 0.2 | ||||||||||||
Net current period other comprehensive income (loss) | 0.3 | (0.5 | ) | 26.6 | 26.4 | |||||||||||
Balance as of November 24, 2017 | $ | — | $ | 12.5 | $ | (36.7 | ) | $ | (24.2 | ) |
Detail of Accumulated Other Comprehensive Income (Loss) Components | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line in the Condensed Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | ||||||||||||||||||||||||||||||||||||||
Amortization of pension and other post-retirement actuarial losses (gains) | $ | (0.1) | $ | (0.3) | $ | (0.2) | $ | (0.9) | Other income, net | ||||||||||||||||||||||||||||||||
Prior service cost (credit) | — | — | — | (0.1) | Other income, net | ||||||||||||||||||||||||||||||||||||
Income tax expense | 0.1 | 0.1 | 0.1 | 0.3 | Income tax expense (benefit) | ||||||||||||||||||||||||||||||||||||
— | (0.2) | (0.1) | (0.7) | ||||||||||||||||||||||||||||||||||||||
Derivative amortization | 0.4 | 0.4 | 1.0 | 1.0 | Interest expense | ||||||||||||||||||||||||||||||||||||
Income tax benefit | (0.1) | (0.1) | (0.3) | (0.3) | Income tax expense (benefit) | ||||||||||||||||||||||||||||||||||||
0.3 | 0.3 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||
Total reclassifications | $ | 0.3 | $ | 0.1 | $ | 0.6 | $ | — |
Detail of Accumulated Other Comprehensive Income (Loss) Components | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line in the Condensed Consolidated Statements of Income | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | ||||||||||||||
Amortization of pension and other post-retirement liability adjustments | |||||||||||||||||
Actuarial losses (gains) | (0.4 | ) | (0.1 | ) | (1.3 | ) | (0.2 | ) | Cost of sales | ||||||||
Actuarial losses (gains) | (0.3 | ) | — | (1.1 | ) | 0.1 | Operating expenses | ||||||||||
Prior service cost (credit) | (0.8 | ) | (1.0 | ) | (2.4 | ) | (3.0 | ) | Cost of sales | ||||||||
Prior service cost (credit) | (1.0 | ) | (1.2 | ) | (2.9 | ) | (3.5 | ) | Operating expenses | ||||||||
Settlements - Actuarial losses (gains) | — | — | 3.9 | — | Cost of sales | ||||||||||||
Settlements - Actuarial losses (gains) | — | — | 3.2 | — | Operating expenses | ||||||||||||
1.0 | 0.8 | 0.8 | 2.4 | Income tax expense | |||||||||||||
Total reclassifications | $ | (1.5 | ) | $ | (1.5 | ) | $ | 0.2 | $ | (4.2 | ) | Net income |
November 26, 2021 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 274.1 | $ | — | $ | — | $ | 274.1 | ||||||||||||||||||
Restricted cash | 6.9 | — | — | 6.9 | ||||||||||||||||||||||
Foreign exchange forward contracts | — | 0.2 | — | 0.2 | ||||||||||||||||||||||
Auction rate security | — | — | 2.7 | 2.7 | ||||||||||||||||||||||
$ | 281.0 | $ | 0.2 | $ | 2.7 | $ | 283.9 | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | (2.1) | $ | — | $ | (2.1) | ||||||||||||||||||
$ | — | $ | (2.1) | $ | — | $ | (2.1) | |||||||||||||||||||
February 26, 2021 | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 489.8 | $ | — | $ | — | $ | 489.8 | ||||||||||||||||||
Restricted cash | 5.8 | — | — | 5.8 | ||||||||||||||||||||||
Foreign exchange forward contracts | — | 1.1 | — | 1.1 | ||||||||||||||||||||||
Auction rate security | — | — | 2.6 | 2.6 | ||||||||||||||||||||||
$ | 495.6 | $ | 1.1 | $ | 2.6 | $ | 499.3 | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | (0.8) | $ | — | $ | (0.8) | ||||||||||||||||||
$ | — | $ | (0.8) | $ | — | $ | (0.8) |
November 24, 2017 | |||||||||||||||
Fair Value of Financial Instruments | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 244.1 | $ | — | $ | — | $ | 244.1 | |||||||
Restricted cash | 2.5 | — | — | 2.5 | |||||||||||
Foreign exchange forward contracts | — | 0.9 | — | 0.9 | |||||||||||
Auction rate securities | — | — | 3.9 | 3.9 | |||||||||||
$ | 246.6 | $ | 0.9 | $ | 3.9 | $ | 251.4 | ||||||||
Liabilities: | |||||||||||||||
Foreign exchange forward contracts | — | (1.6 | ) | — | (1.6 | ) | |||||||||
$ | — | $ | (1.6 | ) | $ | — | $ | (1.6 | ) | ||||||
February 24, 2017 | |||||||||||||||
Fair Value of Financial Instruments | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 197.1 | $ | — | $ | — | $ | 197.1 | |||||||
Restricted cash | 2.5 | — | — | 2.5 | |||||||||||
Managed investment portfolio and other investments | |||||||||||||||
Corporate debt securities | — | 33.6 | — | 33.6 | |||||||||||
U.S. agency debt securities | — | 18.6 | — | 18.6 | |||||||||||
Asset backed securities | — | 3.7 | — | 3.7 | |||||||||||
U.S. government debt securities | 2.4 | — | — | 2.4 | |||||||||||
Municipal debt securities | — | 15.1 | — | 15.1 | |||||||||||
Foreign exchange forward contracts | — | 3.5 | — | 3.5 | |||||||||||
Auction rate securities | — | — | 3.5 | 3.5 | |||||||||||
$ | 202.0 | $ | 74.5 | $ | 3.5 | $ | 280.0 | ||||||||
Liabilities: | |||||||||||||||
Foreign exchange forward contracts | $ | — | $ | (0.9 | ) | $ | — | $ | (0.9 | ) | |||||
$ | — | $ | (0.9 | ) | $ | — | $ | (0.9 | ) |
Roll-Forward of Fair Value Using Level 3 Inputs | Auction Rate Securities | ||
Balance as of February 24, 2017 | $ | 3.5 | |
Unrealized gain on investments | 0.4 | ||
Balance as of November 24, 2017 | $ | 3.9 |
Balance as of February 26, 2021 | $ | 2.6 | ||||||||||||
Unrealized gain on investment | 0.1 | |||||||||||||
Balance as of November 26, 2021 | $ | 2.7 |
Inventories | November 24, 2017 | February 24, 2017 | |||||
Raw materials and work-in-process | $ | 87.8 | $ | 79.6 | |||
Finished goods | 117.4 | 101.7 | |||||
205.2 | 181.3 | ||||||
Revaluation to LIFO | 18.9 | 18.2 | |||||
$ | 186.3 | $ | 163.1 |
Inventories | November 26, 2021 | February 26, 2021 | ||||||||||||
Raw materials and work-in-process | $ | 162.8 | $ | 126.0 | ||||||||||
Finished goods | 151.3 | 86.4 | ||||||||||||
314.1 | 212.4 | |||||||||||||
Revaluation to LIFO | 28.0 | 18.9 | ||||||||||||
$ | 286.1 | $ | 193.5 |
FY22 Award | FY21 Award | FY20 Award | ||||||||||||||||||||||||||||||||||||||||||
2018 Awards | 2017 Awards | 2016 Awards | Tranche 1 | Tranche 2 | Tranche 1 | Tranche 3 | Tranche 2 | Tranche 1 | ||||||||||||||||||||||||||||||||||||
Three-year risk-free interest rate (1) | 1.4 | % | 0.9 | % | 0.8 | % | ||||||||||||||||||||||||||||||||||||||
Risk-free interest rate (1) | Risk-free interest rate (1) | 0.3 | % | 0.2 | % | 0.2 | % | 0.1 | % | 0.1 | % | 2.3 | % | |||||||||||||||||||||||||||||||
Expected term | 3 years | 3 years | 3 years | Expected term | 3 years | 2 years | 2 years | 1 year | 1 year | 3 years | ||||||||||||||||||||||||||||||||||
Estimated volatility (2) | 31.8 | % | 31.2 | % | 29.4 | % | Estimated volatility (2) | 53.5 | % | 61.3 | % | 58.1 | % | 56.1 | % | 74.1 | % | 32.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
Performance Units | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | ||||||||||||||||||||||||||||||||||
Expense (credit) | $ | (4.1) | $ | 0.1 | $ | 1.5 | $ | 0.4 | ||||||||||||||||||||||||||||||
Tax benefit (expense) | (1.0) | — | 0.4 | 0.1 |
Three Months Ended | Nine Months Ended | ||||||||||||||
Performance Units | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||
Expense | $ | 1.3 | $ | 1.5 | $ | 3.8 | $ | 4.7 | |||||||
Tax benefit | 0.5 | 0.5 | 1.4 | 1.7 |
Maximum Number of Shares That May Be Issued Under Nonvested Units | Total | Weighted-Average Grant Date Fair Value per Unit | Maximum Number of Shares That May Be Issued Under Nonvested Units | Total | Weighted-Average Grant Date Fair Value per Unit | ||||||||
Nonvested as of February 24, 2017 | 916,420 | $ | 19.31 | ||||||||||
Nonvested as of February 26, 2021 | Nonvested as of February 26, 2021 | 898,156 | $ | 14.06 | |||||||||
Granted | 309,000 | 21.77 | Granted | 1,019,517 | 14.38 | ||||||||
Nonvested as of November 24, 2017 | 1,225,420 | $ | 19.93 | ||||||||||
Nonvested as of November 26, 2021 | Nonvested as of November 26, 2021 | 1,917,673 | $ | 14.23 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
Restricted Stock Units | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | ||||||||||||||||||||||||||||||||||
Expense | $ | 2.1 | $ | 1.9 | $ | 11.3 | $ | 10.9 | ||||||||||||||||||||||||||||||
Tax benefit | 0.5 | 0.5 | 2.8 | 2.8 |
Three Months Ended | Nine Months Ended | ||||||||||||||
Restricted Stock Units | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||
Expense | $ | 2.3 | $ | 2.5 | $ | 11.1 | $ | 11.4 | |||||||
Tax benefit | 0.8 | 0.9 | 4.0 | 4.1 |
Nonvested Units | Total | Weighted-Average Grant Date Fair Value per Unit | ||||||
Nonvested as of February 26, 2021 | 2,285,965 | $ | 12.11 | |||||
Granted | 1,155,818 | 13.89 | ||||||
Vested | (121,384) | 12.95 | ||||||
Forfeited | (65,085) | 12.92 | ||||||
Nonvested as of November 26, 2021 | 3,255,314 | $ | 12.58 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating lease cost | $ | 13.2 | $ | 12.8 | $ | 39.5 | $ | 38.8 | ||||||||||||||||||||||||||||||||||||||||||
Sublease rental income | (0.5) | (0.7) | (1.4) | (1.6) | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 12.7 | $ | 12.1 | $ | 38.1 | $ | 37.2 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||
Cash flow information: | ||||||||||||||||||||||||||||||||||||||
Operating cash flows used for operating leases | $ | 13.6 | $ | 12.6 | $ | 40.4 | $ | 37.3 | ||||||||||||||||||||||||||||||
Leased assets obtained in exchange for new operating lease obligations | $ | 17.0 | $ | 0.7 | $ | 34.3 | $ | 2.6 |
November 26, 2021 | November 27, 2020 | |||||||||||||
Other information: | ||||||||||||||
Weighted-average remaining term | 6.2 years | 6.7 years | ||||||||||||
Weighted-average discount rate | 3.6 | % | 4.0 | % |
Nonvested Units | Total | Weighted-Average Grant Date Fair Value per Unit | |||
Nonvested as of February 24, 2017 | 1,731,507 | $ | 16.38 | ||
Granted | 780,321 | 16.51 | |||
Vested | (132,238 | ) | 16.94 | ||
Forfeited | (32,088 | ) | 16.22 | ||
Nonvested as of November 24, 2017 | 2,347,502 | $ | 16.39 |
Fiscal year ending in February | Amount (1) | |||||||
2022 | $ | 13.1 | ||||||
2023 | 50.2 | |||||||
2024 | 45.8 | |||||||
2025 | 43.2 | |||||||
2026 | 34.2 | |||||||
Thereafter | 81.3 | |||||||
Total lease payments | $ | 267.8 | ||||||
Less: Interest | 28.3 | |||||||
Present value of lease liabilities | $ | 239.5 |
Other Intangible Assets | Useful Life (Years) | Fair Value | ||||||||||||
Trademark | 9.0 | $ | 4.6 | |||||||||||
Dealer relationships | 13.0 | 3.8 | ||||||||||||
Know-how/designs | 9.0 | 3.3 | ||||||||||||
$ | 11.7 |
Fiscal Year Ending in February | Amount | |||||||
2022 | $ | 0.4 | ||||||
2023 | 1.1 | |||||||
2024 | 1.1 | |||||||
2025 | 1.2 | |||||||
2026 | 1.1 | |||||||
$ | 4.9 |
Three Months Ended | Nine Months Ended | |||||||||||||||
Reportable Segment Statement of Operations Data | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | ||||||||||||
Revenue | ||||||||||||||||
Americas | $ | 552.8 | $ | 576.7 | $ | 1,656.3 | $ | 1,668.1 | ||||||||
EMEA | 141.1 | 135.5 | 372.4 | 373.6 | ||||||||||||
Other | 78.2 | 74.3 | 254.1 | 221.6 | ||||||||||||
$ | 772.1 | $ | 786.5 | $ | 2,282.8 | $ | 2,263.3 | |||||||||
Operating income (loss) | ||||||||||||||||
Americas | $ | 47.6 | $ | 59.7 | $ | 147.1 | $ | 184.3 | ||||||||
EMEA | (3.3 | ) | 2.7 | (15.5 | ) | (14.9 | ) | |||||||||
Other | 2.6 | 3.1 | 15.9 | 8.8 | ||||||||||||
Corporate | (8.4 | ) | (10.9 | ) | (24.9 | ) | (28.4 | ) | ||||||||
$ | 38.5 | $ | 54.6 | $ | 122.6 | $ | 149.8 |
Reportable Segment Balance Sheet Data | November 24, 2017 | February 24, 2017 | ||||||
Total assets | ||||||||
Americas | $ | 1,016.4 | $ | 960.7 | ||||
EMEA | 303.2 | 297.4 | ||||||
Other | 211.2 | 191.1 | ||||||
Corporate | 317.7 | 342.8 | ||||||
$ | 1,848.5 | $ | 1,792.0 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
Reportable Segment Statement of Operations Data | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | ||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||
Americas | $ | 500.3 | $ | 416.4 | $ | 1,399.9 | $ | 1,381.5 | ||||||||||||||||||||||||||||||
EMEA | 168.2 | 143.3 | 430.7 | 368.7 | ||||||||||||||||||||||||||||||||||
Other | 69.7 | 57.8 | 189.0 | 168.9 | ||||||||||||||||||||||||||||||||||
$ | 738.2 | $ | 617.5 | $ | 2,019.6 | $ | 1,919.1 | |||||||||||||||||||||||||||||||
Operating income (loss) | ||||||||||||||||||||||||||||||||||||||
Americas | $ | 11.1 | $ | 13.8 | $ | 40.8 | $ | 84.9 | ||||||||||||||||||||||||||||||
EMEA | 8.3 | (3.7) | 1.0 | (31.8) | ||||||||||||||||||||||||||||||||||
Other | 2.0 | (2.2) | (7.5) | (2.7) | ||||||||||||||||||||||||||||||||||
Corporate | (5.5) | (7.9) | (16.3) | (14.1) | ||||||||||||||||||||||||||||||||||
$ | 15.9 | $ | — | $ | 18.0 | $ | 36.3 |
Reportable Segment Balance Sheet Data | November 26, 2021 | February 26, 2021 | |||||||||||||||
Total assets | |||||||||||||||||
Americas | $ | 1,103.6 | $ | 1,015.3 | |||||||||||||
EMEA | 479.2 | 414.4 | |||||||||||||||
Other | 227.0 | 211.3 | |||||||||||||||
Corporate | 509.0 | 713.0 | |||||||||||||||
$ | 2,318.8 | $ | 2,354.0 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 738.2 | 100.0 | % | $ | 617.5 | 100.0 | % | $ | 2,019.6 | 100.0 | % | $ | 1,919.1 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 534.6 | 72.4 | 437.3 | 70.9 | 1,454.5 | 72.0 | 1,339.7 | 69.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | — | — | 2.3 | 0.3 | — | — | 9.2 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 203.6 | 27.6 | 177.9 | 28.8 | 565.1 | 28.0 | 570.2 | 29.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 187.7 | 25.4 | 168.8 | 27.3 | 547.1 | 27.1 | 498.5 | 26.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | — | — | — | — | — | — | 17.6 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | — | — | 9.1 | 1.5 | — | — | 17.8 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 15.9 | 2.2 | — | — | 18.0 | 0.9 | 36.3 | 1.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (6.5) | (0.9) | (6.6) | (1.1) | (19.3) | (1.0) | (20.7) | (1.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income | 0.1 | — | 0.2 | — | 0.4 | — | 1.2 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | 2.5 | 0.3 | 2.2 | 0.4 | 3.5 | 0.2 | 7.0 | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | 12.0 | 1.6 | (4.2) | (0.7) | 2.6 | 0.1 | 23.8 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 2.4 | 0.3 | (6.3) | (1.0) | (3.6) | (0.2) | 4.3 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 9.6 | 1.3 | % | $ | 2.1 | 0.3 | % | $ | 6.2 | 0.3 | % | $ | 19.5 | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.08 | $ | 0.02 | $ | 0.05 | $ | 0.17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.08 | $ | 0.02 | $ | 0.05 | $ | 0.17 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Statement of Operations Data | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Revenue | $ | 772.1 | 100.0 | % | $ | 786.5 | 100.0 | % | $ | 2,282.8 | 100.0 | % | $ | 2,263.3 | 100.0 | % | |||||||||||
Cost of sales | 520.3 | 67.4 | 524.6 | 66.7 | 1,529.8 | 67.0 | 1,504.3 | 66.5 | |||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | 4.2 | 0.2 | |||||||||||||||||||
Gross profit | 251.8 | 32.6 | 261.9 | 33.3 | 753.0 | 33.0 | 754.8 | 33.3 | |||||||||||||||||||
Operating expenses | 213.3 | 27.6 | 207.5 | 26.4 | 630.4 | 27.6 | 604.5 | 26.7 | |||||||||||||||||||
Restructuring costs (benefits) | — | — | (0.2 | ) | — | — | — | 0.5 | — | ||||||||||||||||||
Operating income | 38.5 | 5.0 | 54.6 | 6.9 | 122.6 | 5.4 | 149.8 | 6.6 | |||||||||||||||||||
Interest expense | (4.3 | ) | (0.6 | ) | (4.3 | ) | (0.6 | ) | (13.0 | ) | (0.6 | ) | (12.9 | ) | (0.6 | ) | |||||||||||
Investment income | 0.3 | — | 0.4 | 0.1 | 1.1 | — | 1.2 | 0.1 | |||||||||||||||||||
Other income, net | 3.2 | 0.5 | 4.1 | 0.5 | 6.1 | 0.3 | 8.0 | 0.4 | |||||||||||||||||||
Income before income tax expense | 37.7 | 4.9 | 54.8 | 6.9 | 116.8 | 5.1 | 146.1 | 6.5 | |||||||||||||||||||
Income tax expense | 12.0 | 1.6 | 13.6 | 1.7 | 36.1 | 1.6 | 47.3 | 2.1 | |||||||||||||||||||
Net income | $ | 25.7 | 3.3 | % | $ | 41.2 | 5.2 | % | $ | 80.7 | 3.5 | % | $ | 98.8 | 4.4 | % | |||||||||||
Earnings per share: | |||||||||||||||||||||||||||
Basic | $ | 0.22 | $ | 0.34 | $ | 0.68 | $ | 0.82 | |||||||||||||||||||
Diluted | $ | 0.22 | $ | 0.34 | $ | 0.67 | $ | 0.81 |
Q3 2022 Organic Revenue Growth | Americas | EMEA | Other | Consolidated | ||||||||||||||||||||||
Q3 2021 revenue | $ | 416.4 | $ | 143.3 | $ | 57.8 | $ | 617.5 | ||||||||||||||||||
Acquisitions | 12.2 | 0.7 | — | 12.9 | ||||||||||||||||||||||
Currency translation effects* | 0.7 | (0.8) | 0.4 | 0.3 | ||||||||||||||||||||||
Q3 2021 revenue, adjusted | 429.3 | 143.2 | 58.2 | 630.7 | ||||||||||||||||||||||
Q3 2022 revenue | 500.3 | 168.2 | 69.7 | 738.2 | ||||||||||||||||||||||
Organic growth $ | $ | 71.0 | $ | 25.0 | $ | 11.5 | $ | 107.5 | ||||||||||||||||||
Organic growth % | 17 | % | 17 | % | 20 | % | 17 | % | ||||||||||||||||||
* Currency translation effects represent the estimated net effect of translating Q3 2021 foreign currency revenues using the average exchange rates during Q3 2022. |
Year-to-date 2022 Organic Revenue Growth (Decline) | Americas | EMEA | Other | Consolidated | ||||||||||||||||||||||
Year-to-date 2021 revenue | $ | 1,381.5 | $ | 368.7 | $ | 168.9 | $ | 1,919.1 | ||||||||||||||||||
Acquisitions | 38.1 | 0.7 | — | 38.8 | ||||||||||||||||||||||
Currency translation effects* | 4.9 | 15.6 | 3.6 | 24.1 | ||||||||||||||||||||||
Year-to-date 2021 revenue, adjusted | 1,424.5 | 385.0 | 172.5 | 1,982.0 | ||||||||||||||||||||||
Year-to-date 2022 revenue | 1,399.9 | 430.7 | 189.0 | 2,019.6 | ||||||||||||||||||||||
Organic growth (decline) $ | $ | (24.6) | $ | 45.7 | $ | 16.5 | $ | 37.6 | ||||||||||||||||||
Organic growth (decline) % | (2) | % | 12 | % | 10 | % | 2 | % | ||||||||||||||||||
* Currency translation effects represent the estimated net effect of translating year-to-date 2021 foreign currency revenues using the average exchange rates during year-to-date 2022. | ||||||||||||||||||||||||||
Q3 2018 Organic Revenue Growth (Decline) | Americas | EMEA | Other | Consolidated | ||||||||||||
Q3 2017 revenue | $ | 576.7 | $ | 135.5 | $ | 74.3 | $ | 786.5 | ||||||||
Divestitures | (3.3 | ) | (1.1 | ) | — | (4.4 | ) | |||||||||
Currency translation effects* | 1.5 | 8.8 | 1.0 | 11.3 | ||||||||||||
Q3 2017 revenue, adjusted | 574.9 | 143.2 | 75.3 | 793.4 | ||||||||||||
Q3 2018 revenue | 552.8 | 141.1 | 78.2 | 772.1 | ||||||||||||
Organic growth (decline) $ | $ | (22.1 | ) | $ | (2.1 | ) | $ | 2.9 | $ | (21.3 | ) | |||||
Organic growth (decline) % | (4 | )% | (1 | )% | 4 | % | (3 | )% | ||||||||
* Currency translation effects represent the estimated net effect of translating Q3 2017 foreign currency revenues using the average exchange rates during Q3 2018. |
Reconciliation of Operating Income to Adjusted Operating Income | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 15.9 | 2.2 | % | $ | — | — | % | $ | 18.0 | 0.9 | % | $ | 36.3 | 1.9 | % | ||||||||||||||||||||||||||||||||||
Add: Goodwill impairment charge | — | — | — | — | — | — | 17.6 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||
Add: Restructuring costs | — | — | 11.4 | 1.8 | — | — | 27.0 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 15.9 | 2.2 | % | $ | 11.4 | 1.8 | % | $ | 18.0 | 0.9 | % | $ | 80.9 | 4.2 | % |
Year-to-Date 2018 Organic Revenue Growth (Decline) | Americas | EMEA | Other | Consolidated | ||||||||||||
Year-to-date 2017 revenue | $ | 1,668.1 | $ | 373.6 | $ | 221.6 | $ | 2,263.3 | ||||||||
Divestitures | (3.3 | ) | (2.9 | ) | — | (6.2 | ) | |||||||||
Currency translation effects* | 0.8 | 4.7 | 0.6 | 6.1 | ||||||||||||
Year-to-date 2017 revenue, adjusted | 1,665.6 | 375.4 | 222.2 | 2,263.2 | ||||||||||||
Year-to-date 2018 revenue | 1,656.3 | 372.4 | 254.1 | 2,282.8 | ||||||||||||
Organic growth (decline) $ | $ | (9.3 | ) | $ | (3.0 | ) | $ | 31.9 | $ | 19.6 | ||||||
Organic growth (decline) % | (1 | )% | (1 | )% | 14 | % | 1 | % | ||||||||
* Currency translation effects represent the estimated net effect of translating year-to-date 2017 foreign currency revenues using the average exchange rates during year-to-date 2018. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Operating income | $ | 38.5 | 5.0 | % | $ | 54.6 | 6.9 | % | $ | 122.6 | 5.4 | % | $ | 149.8 | 6.6 | % | |||||||||||
Add: restructuring costs (benefits) | — | — | (0.2 | ) | — | — | — | 4.7 | 0.2 | ||||||||||||||||||
Adjusted operating income | $ | 38.5 | 5.0 | % | $ | 54.4 | 6.9 | % | $ | 122.6 | 5.4 | % | $ | 154.5 | 6.8 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
Interest Expense, Investment Income and Other Income, Net | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | ||||||||||||||||||||||
Interest expense | $ | (6.5) | $ | (6.6) | $ | (19.3) | $ | (20.7) | ||||||||||||||||||
Investment income | 0.1 | 0.2 | 0.4 | 1.2 | ||||||||||||||||||||||
Other income, net: | ||||||||||||||||||||||||||
Equity in income of unconsolidated affiliates | 2.2 | 2.6 | 4.5 | 6.6 | ||||||||||||||||||||||
Foreign exchange gains (losses) | 0.9 | 0.1 | 0.6 | (1.0) | ||||||||||||||||||||||
Net periodic pension and post-retirement credit, excluding service cost | (0.2) | — | (0.5) | (0.1) | ||||||||||||||||||||||
Miscellaneous income (expense), net | (0.4) | (0.5) | (1.1) | 1.5 | ||||||||||||||||||||||
Total other income, net | 2.5 | 2.2 | 3.5 | 7.0 | ||||||||||||||||||||||
Total interest expense, investment income and other income, net | $ | (3.9) | $ | (4.2) | $ | (15.4) | $ | (12.5) |
Three Months Ended | Nine Months Ended | ||||||||||||||
Interest Expense, Investment Income and Other Income, Net | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||
Interest expense | $ | (4.3 | ) | $ | (4.3 | ) | $ | (13.0 | ) | $ | (12.9 | ) | |||
Investment income | 0.3 | 0.4 | 1.1 | 1.2 | |||||||||||
Other income (expense), net: | |||||||||||||||
Equity in income of unconsolidated affiliates | 4.7 | 2.7 | 10.3 | 7.4 | |||||||||||
Foreign exchange gains (losses) | (0.8 | ) | 2.1 | (3.0 | ) | 2.8 | |||||||||
Miscellaneous, net | (0.7 | ) | (0.7 | ) | (1.2 | ) | (2.2 | ) | |||||||
Total other income, net | 3.2 | 4.1 | 6.1 | 8.0 | |||||||||||
Total interest expense, investment income and other income, net | $ | (0.8 | ) | $ | 0.2 | $ | (5.8 | ) | $ | (3.7 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data — Americas | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 500.3 | 100.0 | % | $ | 416.4 | 100.0 | % | $ | 1,399.9 | 100.0 | % | $ | 1,381.5 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 370.3 | 74.0 | 290.4 | 69.7 | 1,015.4 | 72.5 | 950.8 | 68.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | — | — | 2.3 | 0.6 | — | — | 9.2 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 130.0 | 26.0 | 123.7 | 29.7 | 384.5 | 27.5 | 421.5 | 30.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 118.9 | 23.8 | 100.8 | 24.2 | 343.7 | 24.6 | 318.8 | 23.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring costs | — | — | 9.1 | 2.2 | — | — | 17.8 | 1.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 11.1 | 2.2 | % | $ | 13.8 | 3.3 | % | $ | 40.8 | 2.9 | % | $ | 84.9 | 6.1 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Statement of Operations Data — Americas | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Revenue | $ | 552.8 | 100.0 | % | $ | 576.7 | 100.0 | % | $ | 1,656.3 | 100.0 | % | $ | 1,668.1 | 100.0 | % | |||||||||||
Cost of sales | 367.8 | 66.5 | 381.3 | 66.1 | 1,093.6 | 66.0 | 1,084.5 | 65.0 | |||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | 2.6 | 0.2 | |||||||||||||||||||
Gross profit | 185.0 | 33.5 | 195.4 | 33.9 | 562.7 | 34.0 | 581.0 | 34.8 | |||||||||||||||||||
Operating expenses | 137.4 | 24.9 | 135.7 | 23.5 | 415.6 | 25.1 | 396.7 | 23.8 | |||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | |||||||||||||||||||
Operating income | $ | 47.6 | 8.6 | % | $ | 59.7 | 10.4 | % | $ | 147.1 | 8.9 | % | $ | 184.3 | 11.0 | % |
Reconciliation of Operating Income to Adjusted Operating Income — Americas | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 11.1 | 2.2 | % | $ | 13.8 | 3.3 | % | $ | 40.8 | 2.9 | % | $ | 84.9 | 6.1 | % | ||||||||||||||||||||||||||||||||||
Add: Restructuring costs | — | — | 11.4 | 2.8 | — | — | 27.0 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 11.1 | 2.2 | % | $ | 25.2 | 6.1 | % | $ | 40.8 | 2.9 | % | $ | 111.9 | 8.1 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income — Americas | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Operating income | $ | 47.6 | 8.6 | % | $ | 59.7 | 10.4 | % | $ | 147.1 | 8.9 | % | $ | 184.3 | 11.0 | % | |||||||||||
Add: restructuring costs | — | — | — | — | — | — | 2.6 | 0.2 | |||||||||||||||||||
Adjusted operating income | $ | 47.6 | 8.6 | % | $ | 59.7 | 10.4 | % | $ | 147.1 | 8.9 | % | $ | 186.9 | 11.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data — EMEA | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 168.2 | 100.0 | % | $ | 143.3 | 100.0 | % | $ | 430.7 | 100.0 | % | $ | 368.7 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 118.1 | 70.2 | 107.7 | 75.2 | 309.0 | 71.7 | 276.4 | 75.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 50.1 | 29.8 | 35.6 | 24.8 | 121.7 | 28.3 | 92.3 | 25.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 41.8 | 24.9 | 39.3 | 27.4 | 120.7 | 28.1 | 106.5 | 28.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment charge | — | — | — | — | — | — | 17.6 | 4.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 8.3 | 4.9 | % | $ | (3.7) | (2.6) | % | $ | 1.0 | 0.2 | % | $ | (31.8) | (8.6) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Statement of Operations Data — EMEA | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Revenue | $ | 141.1 | 100.0 | % | $ | 135.5 | 100.0 | % | $ | 372.4 | 100.0 | % | $ | 373.6 | 100.0 | % | |||||||||||
Cost of sales | 101.9 | 72.2 | 95.0 | 70.1 | 273.3 | 73.4 | 274.3 | 73.4 | |||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | 1.6 | 0.4 | |||||||||||||||||||
Gross profit | 39.2 | 27.8 | 40.5 | 29.9 | 99.1 | 26.6 | 97.7 | 26.2 | |||||||||||||||||||
Operating expenses | 42.5 | 30.1 | 38.0 | 28.1 | 114.6 | 30.8 | 112.1 | 30.0 | |||||||||||||||||||
Restructuring costs (benefits) | — | — | (0.2 | ) | — | — | — | 0.5 | 0.2 | ||||||||||||||||||
Operating income (loss) | $ | (3.3 | ) | (2.3 | )% | $ | 2.7 | 1.8 | % | $ | (15.5 | ) | (4.2 | )% | $ | (14.9 | ) | (4.0 | )% |
Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — EMEA | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 8.3 | 4.9 | % | $ | (3.7) | (2.6) | % | $ | 1.0 | 0.2 | % | $ | (31.8) | (8.6) | % | ||||||||||||||||||||||||||||||||||
Add: Goodwill impairment charge | — | — | — | — | — | — | 17.6 | 4.8 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 8.3 | 4.9 | % | $ | (3.7) | (2.6) | % | $ | 1.0 | 0.2 | % | $ | (14.2) | (3.8) | % |
Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — EMEA | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | ||||||||||||||||||||||||
Operating income (loss) | $ | (3.3 | ) | (2.3 | )% | $ | 2.7 | 1.8 | % | $ | (15.5 | ) | (4.2 | )% | $ | (14.9 | ) | (4.0 | )% | ||||||||
Add: restructuring costs (benefits) | — | — | (0.2 | ) | — | — | — | 2.1 | 0.6 | ||||||||||||||||||
Adjusted operating income (loss) | $ | (3.3 | ) | (2.3 | )% | $ | 2.5 | 1.8 | % | $ | (15.5 | ) | (4.2 | )% | $ | (12.8 | ) | (3.4 | )% |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data — Other | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 69.7 | 100.0 | % | $ | 57.8 | 100.0 | % | $ | 189.0 | 100.0 | % | $ | 168.9 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 46.2 | 66.3 | 39.2 | 67.8 | 130.1 | 68.8 | 112.5 | 66.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 23.5 | 33.7 | 18.6 | 32.2 | 58.9 | 31.2 | 56.4 | 33.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 21.5 | 30.8 | 20.8 | 36.0 | 66.4 | 35.2 | 59.1 | 35.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 2.0 | 2.9 | % | $ | (2.2) | (3.8) | % | $ | (7.5) | (4.0) | % | $ | (2.7) | (1.6) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Statement of Operations Data — Other | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Revenue | $ | 78.2 | 100.0 | % | $ | 74.3 | 100.0 | % | $ | 254.1 | 100.0 | % | $ | 221.6 | 100.0 | % | |||||||||||
Cost of sales | 50.6 | 64.7 | 48.3 | 64.9 | 162.9 | 64.1 | 145.5 | 65.6 | |||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | |||||||||||||||||||
Gross profit | 27.6 | 35.3 | 26.0 | 35.1 | 91.2 | 35.9 | 76.1 | 34.4 | |||||||||||||||||||
Operating expenses | 25.0 | 32.0 | 22.9 | 30.8 | 75.3 | 29.6 | 67.3 | 30.4 | |||||||||||||||||||
Restructuring costs | — | — | — | — | — | — | — | — | |||||||||||||||||||
Operating income | $ | 2.6 | 3.3 | % | $ | 3.1 | 4.3 | % | $ | 15.9 | 6.3 | % | $ | 8.8 | 4.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income — Other | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | |||||||||||||||||||||||
Operating income | $ | 2.6 | 3.3 | % | $ | 3.1 | 4.3 | % | $ | 15.9 | 6.3 | % | $ | 8.8 | 4.0 | % | |||||||||||
Add: restructuring costs | — | — | — | — | — | — | — | — | |||||||||||||||||||
Adjusted operating income | $ | 2.6 | 3.3 | % | $ | 3.1 | 4.3 | % | $ | 15.9 | 6.3 | % | $ | 8.8 | 4.0 | % |
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Operations Data — Corporate | November 24, 2017 | November 25, 2016 | November 24, 2017 | November 25, 2016 | Statement of Operations Data — Corporate | November 26, 2021 | November 27, 2020 | November 26, 2021 | November 27, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | $ | 8.4 | $ | 10.9 | $ | 24.9 | $ | 28.4 | Operating expenses | $ | 5.5 | $ | 7.9 | $ | 16.3 | $ | 14.1 |
Liquidity Sources | November 26, 2021 | February 26, 2021 | ||||||||||||
Cash and cash equivalents | $ | 275.2 | $ | 489.8 | ||||||||||
Company-owned life insurance | 170.0 | 169.5 | ||||||||||||
Availability under credit facilities | 270.6 | 265.9 | ||||||||||||
Total liquidity sources available | $ | 715.8 | $ | 925.2 |
Liquidity Sources | November 24, 2017 | February 24, 2017 | |||||
Cash and cash equivalents | $ | 244.1 | $ | 197.1 | |||
Short-term investments | — | 73.4 | |||||
Company-owned life insurance | 170.5 | 168.8 | |||||
Availability under credit facilities | 152.1 | 150.3 | |||||
Total liquidity | $ | 566.7 | $ | 589.6 |
Nine Months Ended | |||||||
Cash Flow Data | November 24, 2017 | November 25, 2016 | |||||
Net cash provided by (used in): | |||||||
Operating activities | $ | 95.1 | $ | 104.0 | |||
Investing activities | 30.5 | (50.5 | ) | ||||
Financing activities | (81.3 | ) | (94.1 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 2.7 | (2.2 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 47.0 | (42.8 | ) | ||||
Cash and cash equivalents, beginning of period | 197.1 | 181.9 | |||||
Cash and cash equivalents, end of period | $ | 244.1 | $ | 139.1 |
Nine Months Ended | |||||||
Cash Flow Data — Operating Activities | November 24, 2017 | November 25, 2016 | |||||
Net income | $ | 80.7 | $ | 98.8 | |||
Depreciation and amortization | 47.7 | 44.7 | |||||
Deferred income taxes | (6.3 | ) | 5.2 | ||||
Non-cash stock compensation | 15.5 | 16.6 | |||||
Other | (10.4 | ) | (6.3 | ) | |||
Changes in accounts receivable, inventories and accounts payable | (32.1 | ) | (9.9 | ) | |||
Changes in VAT recoverable | 8.2 | 19.3 | |||||
Changes in employee compensation liabilities | (44.2 | ) | (41.5 | ) | |||
Changes in other operating assets and liabilities | 36.0 | (22.9 | ) | ||||
Net cash provided by operating activities | $ | 95.1 | $ | 104.0 |
Nine Months Ended | ||||||||||||||
Cash Flow Data | November 26, 2021 | November 27, 2020 | ||||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | $ | (59.1) | $ | 37.2 | ||||||||||
Investing activities | (51.3) | (17.8) | ||||||||||||
Financing activities | (101.5) | (76.6) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1.6) | 1.8 | ||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (213.5) | (55.4) | ||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 495.6 | 547.1 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 282.1 | $ | 491.7 |
Nine Months Ended | ||||||||||||||
Cash Flow Data — Operating Activities | November 26, 2021 | November 27, 2020 | ||||||||||||
Net income | $ | 6.2 | $ | 19.5 | ||||||||||
Depreciation and amortization | 62.2 | 64.1 | ||||||||||||
Goodwill impairment charge | — | 17.6 | ||||||||||||
Restructuring costs | — | 27.0 | ||||||||||||
Changes in accounts receivable, inventories and accounts payable | (84.5) | 41.8 | ||||||||||||
Employee compensation liabilities | (15.3) | (130.5) | ||||||||||||
Employee benefit obligations | (13.5) | (25.2) | ||||||||||||
Changes in other operating assets and liabilities | (14.2) | 22.9 | ||||||||||||
Net cash provided by (used in) operating activities | $ | (59.1) | $ | 37.2 |
Nine Months Ended | ||||||||||||||
Cash Flow Data — Investing Activities | November 26, 2021 | November 27, 2020 | ||||||||||||
Capital expenditures | $ | (45.3) | $ | (32.1) | ||||||||||
Proceeds from disposal of fixed assets | 17.4 | 7.3 | ||||||||||||
Acquisition, net of cash acquired | (32.6) | — | ||||||||||||
Other | 9.2 | 7.0 | ||||||||||||
Net cash used in investing activities | $ | (51.3) | $ | (17.8) |
Nine Months Ended | |||||||
Cash Flow Data — Investing Activities | November 24, 2017 | November 25, 2016 | |||||
Capital expenditures | $ | (58.3 | ) | $ | (40.4 | ) | |
Purchases of investments | (52.1 | ) | (94.3 | ) | |||
Liquidations of investments | 125.6 | 82.6 | |||||
Other | 15.3 | 1.6 | |||||
Net cash provided by (used in) investing activities | $ | 30.5 | $ | (50.5 | ) |
Nine Months Ended | ||||||||||||||
Cash Flow Data — Financing Activities | November 26, 2021 | November 27, 2020 | ||||||||||||
Dividends paid | $ | (45.9) | $ | (31.8) | ||||||||||
Common stock repurchases | (54.0) | (42.7) | ||||||||||||
Borrowings on lines of credit | — | 250.0 | ||||||||||||
Repayments on lines of credit | — | (250.0) | ||||||||||||
Other | (1.6) | (2.1) | ||||||||||||
Net cash used in financing activities | $ | (101.5) | $ | (76.6) |
Nine Months Ended | |||||||
Cash Flow Data — Financing Activities | November 24, 2017 | November 25, 2016 | |||||
Dividends paid | $ | (45.9 | ) | $ | (44.1 | ) | |
Common stock repurchases | (33.4 | ) | (48.3 | ) | |||
Excess tax benefit from vesting of stock awards | — | (0.1 | ) | ||||
Repayments of debt | (2.0 | ) | (1.6 | ) | |||
Net cash used in financing activities | $ | (81.3 | ) | $ | (94.1 | ) |
Liquidity Facilities | November 24, 2017 | ||
Global committed bank facility | $ | 125.0 | |
Various uncommitted lines | 27.1 | ||
Total credit lines available | 152.1 | ||
Less: Borrowings outstanding | — | ||
Available capacity | $ | 152.1 |
Liquidity Facilities | November 26, 2021 | |||||||
Global committed bank facility | $ | 250.0 | ||||||
Other committed bank facility | 4.7 | |||||||
Various uncommitted lines | 19.2 | |||||||
Total credit lines available | 273.9 | |||||||
Less: Borrowings outstanding | (1.7) | |||||||
Less: Other guarantees | (1.6) | |||||||
Available capacity | $ | 270.6 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) (in millions) | ||||||||||
8/28/2021 - 10/1/2021 | 1,193,884 | $ | 13.13 | 1,193,884 | $ | 14.2 | ||||||||
10/2/2021 - 10/29/2021 | 511,769 | $ | 12.41 | 478,484 | $ | 8.3 | ||||||||
10/30/201 - 11/26/2021 | 58,430 | $ | 11.93 | 58,430 | $ | 7.6 | ||||||||
Total | 1,764,083 | (2) | 1,730,798 |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) (in millions) | ||||||
8/26/2017 - 9/29/2017 | — | $ | — | — | $ | 99.2 | ||||
9/30/2017 - 10/27/2017 | 31,450 | $ | 14.82 | — | $ | 99.2 | ||||
10/28/2017 - 11/24/2017 | 3,805 | $ | 14.37 | — | $ | 99.2 | ||||
Total | 35,255 | (2) | — |
No. |
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Schema Document | |||||||
101.CAL | Inline XBRL Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Labels Linkbase Document | |||||||
101.PRE | Inline XBRL Presentation Linkbase Document | |||||||
101.DEF | Inline XBRL Definition Linkbase Document | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
STEELCASE INC. |
By: | /s/ | ||||
Robin L. Zondervan Vice President, Corporate Controller & Chief Accounting Officer (Duly Authorized Officer and Principal Accounting Officer) |