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

STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the future minimum lease payments as of November 26, 2021:


8.	~~REPORTABLE SEGMENTS~~


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

(1)Lease payments include options to extend lease terms that are reasonably certain of being exercised. The payments exclude legally binding minimum lease payments for leases signed but not yet commenced.

10.ACQUISITIONS

Viccarbe Habitat, S.L.

In Q3 2022, we acquired Viccarbe Habitat, S.L. ("Viccarbe"), a Spanish designer of contemporary furniture for high-performance collaborative and social spaces. The transaction included the purchase of all the outstanding capital stock of Viccarbe for $34.9 (or €30.0), less an adjustment for working capital estimated at $1.5 (or €1.3), in an all-cash transaction using cash on-hand. An additional amount of $15.1 (or €13.0) is payable to the sellers based upon the achievement of certain sales and operating income targets over a three year period. This amount was considered to be contingent consideration and was treated for accounting purposes as part of the total purchase price of the acquisition. We used the Monte Carlo simulation model to calculate the fair value of the contingent consideration as of the acquisition date, which represents a Level 3 measurement. As a result, we recorded a related liability of $4.9 (or €4.2). An additional amount of $7.0 (or €6.0) is also payable to the sellers based upon the achievement of certain milestones and continued employment over a five year period, which will be expensed over the service period on a straight-line basis.

Tangible assets and liabilities of Viccarbe were valued as of the acquisition date using a market analysis and intangible assets were valued using a discounted cash flow analysis, which represents a Level 3 measurement. On the acquisition date, we recorded $11.7 related to identifiable intangible assets, $25.6 related to goodwill and $5.3 related to tangible assets. The tangible assets mainly consisted of working capital (primarily accounts receivable, inventory and accounts payable), property, plant and equipment and deferred tax liabilities. The goodwill was recorded in the EMEA segment and is not deductible for income tax purposes in Spain. The goodwill resulting from the acquisition is primarily related to the growth potential of Viccarbe and our intention to expand the manufacturing of Viccarbe products in geographic regions outside of EMEA and offer Viccarbe products through our global distribution network. Intangible assets are principally related to the Viccarbe trade name, dealer relationships and internally developed know-how and designs, which will be amortized over periods ranging from 9 to 13 years from the date of acquisition. The purchase price allocation for the acquisition was incomplete as of November 26, 2021. The amounts recognized related to the purchase price allocation will be finalized no later than one year after the acquisition date.

The following table summarizes the acquired identified intangible assets and the respective fair value and useful life of each asset at the date of acquisition:

Table of Contents

STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


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

The fair value of the acquired intangible assets will be amortized on a straight-line basis over the remaining useful life. The estimated amortization expense for the next five years is as follows:


Fiscal Year Ending in February	Amount
2022	$	0.4
2023	1.1
2024	1.1
2025	1.2
2026	1.1
	$	4.9

11. REPORTABLE SEGMENTS

Our reportable segments consist of the Americas segment, the EMEA segment and the Other category. Unallocated corporate ~~costs~~expenses are reported as Corporate.

The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a comprehensive portfolio of ~~integrated architecture,~~ furniture, architectural and technology products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, Smith System, AMQ, Orangebox and ~~Turnstone~~Viccarbe brands.

The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox, Coalesse and ~~Coalesse~~Viccarbe brands, with ~~an emphasis on freestanding~~a comprehensive portfolio of furniture, ~~systems, storage~~architectural and ~~seating solutions.~~technology products.

The Other category includes Asia Pacific ~~Designtex~~ and ~~PolyVision.~~Designtex. Asia Pacific serves customers in ~~Asia~~Australia, China, India, Japan, Korea and ~~Australia~~other countries in Southeast Asia primarily under the Steelcase brand with ~~an emphasis on freestanding~~a comprehensive portfolio of furniture, ~~systems, seating~~architectural and ~~storage solutions.~~technology products. Designtex primarily sells textiles, wall coverings and surface imaging solutions specified by architects and designers directly to end-use customers through a direct sales force primarily in North America. ~~PolyVision manufactures ceramic steel surfaces~~

We primarily review and evaluate revenue and operating income by segment in both our internal review processes and for ~~use in various applications globally, including static whiteboards~~our external financial reporting. We also allocate resources primarily based on revenue and ~~chalkboards sold through third party fabricators and distributors to the primary and secondary education markets and architectural panels~~operating income. Total assets by segment include manufacturing and other ~~special applications sold through general contractors for commercial and infrastructure projects.~~assets associated with each segment.

Corporate costs include unallocated portions of shared service functions such as information technology, corporate facilities, finance, human resources, research, legal and customer aviation, plus deferred compensation expense and income or losses associated with COLI. Corporate assets consist primarily of unallocated cash ~~short-term investments~~ and ~~COLI.~~cash equivalents, COLI, fixed assets and right-of-use assets related to operating leases.

~~Revenue and operating income (loss) for the~~ ~~three and nine months endedNovember 24, 2017~~ ~~and~~ ~~November 25, 2016~~ ~~and total assets as of~~ ~~November 24, 2017~~ ~~and~~ ~~February 24, 2017~~ ~~by segment are presented below:~~

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

Table of Contents

STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


9.	~~SUBSEQUENT EVENT~~

OnRevenue and operating income (loss) for the three and nine months ended November ~~28, 2017, the Company announced the pending acquisition~~26, 2021 and November 27, 2020 and total assets as of ~~AMQ Solutions, a California-based provider of height adjustable desking, benching~~November 26, 2021 and ~~seating for workstations~~February 26, 2021 by segment are presented in the ~~open plan, collaborative environments~~following table:


	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

Table of Content s

Item 2.Management’s Discussion and ~~training rooms. The proposed transaction includes the purchase~~Analysis of ~~all outstanding membership interests~~Financial Condition and Results of AMQ and certain assets of an affiliated company in an all cash transaction. The acquisition is expected to be completed during the Company's fourth quarter of 2018, subject to customary closing conditions and regulatory approvals.Operations:


~~Item 2.~~	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations:~~

This management’s discussion and analysis of financial condition and results of operations should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February ~~24, 2017~~.26, 2021. Reference to a year relates to the fiscal year, ended in February of the year indicated, rather than the calendar year, unless indicated by a specific date. Additionally, Q1, Q2, Q3 and Q4 reference the first, second, third and fourth quarter, respectively, of the fiscal year indicated. All amounts are in millions, except share and per share data, data presented as a percentage or as otherwise indicated.

Non-GAAP Financial Measures

This item contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the condensed consolidated statements of income, balance sheets or statements of cash flows of the company. Pursuant to the requirements of Regulation G, we have provided a reconciliation below of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

The non-GAAP financial measures used ~~are:~~are (1) organic revenue growth (decline), which represents the change in revenue excluding ~~estimated currency translation effects and~~ the impacts of acquisitions and divestitures and estimated currency translation effects, and (2) adjusted operating income (loss), which represents operating income (loss) excluding goodwill impairment charges and restructuring ~~costs (benefits).~~costs. These measures are presented because management uses this information to monitor and evaluate financial results and trends. Therefore, management believes this information is also useful for investors.

Financial Summary

Our reportable segments consist of the Americas segment, the EMEA segment and the Other category. Unallocated corporate ~~costs~~expenses are reported as Corporate.

Results of Operations


	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

Table of Content s

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 %

Overview

During Q3 ~~2018,~~2022, we ~~posted~~continued to see strengthening demand and a ~~2% revenue decline~~broader recovery of our industry. Our orders grew by 40% compared to the prior year, ~~driven~~and revenue increased by ~~a 4% decline~~20% compared to the prior year. Supply chain disruptions in the Americas ~~partially offset by 4% growth in EMEA and 5% growth~~ in the ~~Other category.~~current year resulted in extended lead-times, shipment delays and adjustments to delivery schedules which we estimate caused at least $35 of revenue to shift from Q3 2022 into Q4 2022 compared to at least $40 of revenue which we estimate shifted from Q2 2022 to Q3 2022 for similar reasons. Revenue in ~~the Americas~~Q3 2021 was negatively impacted by ~~continued declines~~a delay of approximately $60 of shipments to Q4 2021 due to a temporary global operations shutdown we implemented to protect our systems during a cyberattack. During the quarter, our pipeline of project opportunities, requests for proposals and product mock-ups remained consistent with the levels we saw in ~~legacy furniture applications and reduced demand for day-to-day business. Orders for day-to-day business~~Q2 2022.

The supply chain disruptions in the Americas, ~~were flat~~combined with continued significant inflation in ~~November~~steel and other commodities, net of pricing benefits, had an impact of approximately $40 on cost of sales in Q3 2022 compared to the prior ~~year following significant declines earlier in~~year. We expect the ~~quarter. We have been receiving positive feedback~~supply chain disruptions and inflationary pressures from ~~our customers~~steel and ~~dealers from~~other commodities to continue to impact our ~~new product introductions, partnership offerings and the pending acquisition of AMQ Solutions, and the number of large project opportunities and our project win rates have been increasing.~~

~~Operating income declined compared to the prior year due to lower sales volume, increases in~~ cost of sales ~~as a percentage~~in Q4 2022 and into 2023, but we expect our recent price increases to offset the current level of ~~revenue and higher operating expenses. The increase~~inflation in operating expenses reflected continued investments in product development, sales, marketing and information technology that support our strategies, including developing new products, enhancements and applications, expanding ancillary offerings and marketing partnerships, addressing product gaps and pursuing other areas for growth.2023.

Q3 ~~2018~~2022 Compared to Q3 ~~2017~~2021

We recorded net income of ~~$25.7~~$9.6 and diluted earnings per share of ~~$0.22~~$0.08 in Q3 ~~2018~~2022 compared to net income of ~~$41.2~~$2.1 and diluted earnings per share of ~~$0.34~~$0.02 in ~~Q3 2017.~~the prior year. The ~~Q3 2017~~prior year results included ~~a benefit related to~~restructuring costs in the ~~outcome of a tax audit in EMEA that had a favorable impact on~~Americas, which decreased net income by $7.0 and diluted earnings per share by $0.06.

Table of ~~$0.03.~~ Contents

Operating income of ~~$38.5~~$15.9 in Q3 ~~2018~~2022 compared to break-even operating income in the prior year, which included $11.4 of ~~$54.6 in Q3 2017.~~restructuring costs. The ~~Q3 2018 results were~~increase was driven by ~~lower~~higher revenue, ~~in the Americas,~~partially offset by higher cost of sales as a percentage of revenue.

Revenue of $738.2 in Q3 2022 represented an increase of $120.7 or 20% compared to the prior year, driven by growth across all segments. Supply chain disruptions in the Americas in the current year resulted in extended lead-times, shipment delays and adjustments to delivery schedules which we estimate caused at least $35 of revenue ~~in EMEA, and higher operating expenses globally. After adjusting~~to shift from Q3 2022 into Q4 2022 compared to at least $40 of revenue which we estimate shifted from Q2 2022 to Q3 2022 for ~~the impact of restructuring benefits~~similar reasons. Revenue in the prior year ~~operating income~~was negatively impacted by a delay of ~~$38.5~~approximately $60 of shipments to Q4 2021 as a result of the temporary operations shutdown in Q3 ~~2018~~2021. Revenue grew by 20% in the Americas, 17% in EMEA and 21% in the Other category compared to ~~adjusted operating income~~the prior year. After adjusting for a $12.9 impact from acquisitions and $0.3 of ~~$54.4 in Q3 2017.~~

~~Revenue of $772.1 in Q3 2018 represented a decrease of $14.4~~currency translation effects, the organic revenue growth was $107.5 or 2%17% compared to the prior year. The ~~decrease in~~organic revenue growth was ~~driven by lower revenue~~17% in the Americas, ~~partially offset by growth of 4%~~17% in EMEA and 5%20% in the Other category. After adjusting for $11.3 of favorable currency translation effects and a $4.4 unfavorable impact due to divestitures, the organic revenue decline was $21.3 or 3% compared to the prior year. On an organic basis, revenue in the Americas declined by 4%, revenue in EMEA declined by 1% and revenue in the Other category ~~grew by 4%~~ compared to the prior year.

Cost of sales as a percentage of revenue increased by 70150 basis points ~~to 67.4% of revenue~~ in Q3 ~~2018~~2022 compared to ~~Q3 2017.~~the prior year. The increase was driven by approximately $29 of higher inflation costs, net of pricing benefits, and approximately $11 of higher freight and labor costs and inefficiencies due to supply chain disruptions, partially offset by the benefits of higher revenue. Cost of sales as a 40percentage of revenue increased by 430 basis ~~point increase~~points in the Americas, while EMEA improved by 490 basis points and ~~a 210~~the Other category improved by 150 basis point increase in EMEA. The increase in the Americas was driven by the impacts of unfavorable shifts in business mix, lower volume and approximately $1 of higher commodity costs, partially offset by benefits associated with cost reduction efforts. The increase in EMEA was driven by unfavorable out-of-period accounting adjustments in the current quarter compared to favorable items in the prior year; benefits from gross margin improvement initiatives were offset by various operational inefficiencies and higher commodity costs.points.

Operating expenses of ~~$213.3~~$187.7 in Q3 ~~2018~~2022 represented an increase of ~~$5.8 or 120~~$18.9, but a decline of 190 basis points as a percentage of revenue, compared to the prior year. The ~~increased spending compared to the prior~~current year ~~reflected investments in product development, sales,~~included approximately $13 of higher marketing and ~~information technology~~sales expenses, approximately $6 of higher discretionary spending and employee costs in ~~support of our strategies,~~other functional areas and $3.5 from acquisitions, partially offset by $8$2.9 of lower variable compensation expense.

Our Q3 2022 effective tax rate ~~in Q3 2018~~ was ~~31.8% compared to a Q3 2017 effective~~20.0%, which included $1.2 of discrete tax ~~rate~~benefits. In the prior year, we recorded an income tax benefit of ~~24.8%. The Q3 2018 rate~~$6.3, which was ~~below~~primarily driven by benefits available under the U.S. ~~federal statutory tax rate~~Coronavirus Aid, Relief, and Economic Security Act.

Year-to-date 2022 Compared to Year-to-date 2021

We recorded year-to-date 2022 net income of ~~35% primarily due~~$6.2 and diluted earnings per share of $0.05 compared to ~~favorable tax adjustments recorded in connection with filing our 2017 U.S. tax return. The Q3 2017 rate was below~~year-to-date 2021 net income of $19.5 and diluted earnings per share of $0.17. In year-to-date 2021, the ~~U.S. federal statutory tax rate primarily due to~~results included: (1) a ~~benefit~~goodwill impairment charge related to the ~~outcome~~EMEA segment, which had the effect of ~~a tax audit in EMEA.~~

~~Year-to-Date 2018 Compared to Year-to-Date 2017~~

~~We recorded year-to-date 2018~~decreasing net income by $17.6 and diluted earnings per share by $0.15, and (2) restructuring costs due to workforce reductions in the Americas, which had the effect of ~~$80.7 compared to year-to-date 2017~~decreasing net income by $16.5 and diluted earnings per share by $0.14. Year-to-date 2022 operating income of ~~$98.8.~~$18.0 represented a decrease of $18.3 compared to the prior year. The ~~decline~~decrease was ~~driven by~~due to higher cost of sales as a percentage of revenue and higher operating expenses, partially offset by higher ~~sales volume in~~revenue and the ~~Other category. The year-to-date 2018 results reflected the net~~ impact of the ~~sale~~goodwill impairment charge and restructuring costs in the prior year. Excluding the impact of ~~property~~the goodwill impairment charge and restructuring costs in ~~Rosenheim, Germany and a favorable tax adjustment recorded in Q2 2018 which together increased diluted earnings per share~~the prior year, adjusted operating income decreased by ~~approximately $0.05, partially offset by the defined benefit plan annuitizations recorded in Q1 2018 which decreased diluted earnings per share by approximately $0.03.~~$62.9 in year-to-date 2022 compared to year-to-date 2021.

~~Year-to-date 2018~~Year-to-date 2022 revenue of ~~$2,282.8~~$2,019.6 represented an increase of ~~$19.5~~$100.5 or 1%5% compared to year-to-date ~~2017. The increase~~2021. Revenue increased by 1% in ~~revenue was driven by higher volume~~the Americas, 17% in EMEA and 12% in the Other category partially offset by lower volume in the Americas. After adjusting for $6.1 of favorable currency translation effects and a $6.2 unfavorable impact due to divestitures, the organic revenue increase was $19.6 or 1%. On an organic basis, revenue increased by 14% in the Other category, while the Americas and EMEA each declined 1% compared to the prior year.

~~Cost~~ After adjusting for $38.8 of ~~sales increased by 50 basis points to 67.0%~~impact from acquisitions and $24.1 of currency translation effects, the organic revenue ~~in year-to-date 2018 compared to year-to-date 2017. The increase~~growth was due to a 100 basis point increase in the Americas, partially offset by an improvement of 150 basis points in the Other category. The increase in the Americas was driven by approximately $6 of higher commodity costs, investments in support of product development and manufacturing agility, unfavorable shifts in business mix and $3.4 of charges associated with the defined benefit plan annuitizations recorded in Q1 2018, partially offset by benefits associated with ongoing cost reduction efforts and $6.0 of lower warranty costs$37.6 or 2% compared to the prior year. The ~~improvement~~Americas had an organic revenue decline of 2%, while the organic revenue growth was 12% in EMEA and 10% in the Other category compared to the prior year.

Cost of sales as a percentage of revenue increased by 220 basis points in year-to-date 2022 compared to year-to-date 2021. The increase was driven by ~~the impact~~approximately $57 of higher inflation costs, net of pricing benefits, and approximately $16 of higher freight and labor costs and inefficiencies due to supply chain disruptions, partially offset by the benefits of higher revenue and $6.6 of lower variable compensation expense. Cost of sales ~~volume.~~as a percentage of revenue increased by 370 basis points in the Americas and by 220 basis points in the Other category, while EMEA improved by 320 basis points.

Operating expenses of ~~$630.4~~$547.1 in year-to-date ~~2018~~2022 represented an increase of ~~$25.9~~$48.6, or 90110 basis points as a percentage of revenue, ~~compared~~compared to the prior year. The ~~increased spending compared to the~~ prior year ~~reflected investments in product development, sales,~~included approximately $41 of lower employee costs as a result of temporary hour and pay reductions and gains of $6.7 from the sale of land. The current year included approximately $26 of higher marketing and ~~information technology,~~sales expenses, approximately $11 of higher discretionary spending in other functional areas and $9.5 from acquisitions, partially offset by approximately ~~$10~~$18 of lower

Table of Content s

employee costs (due to the benefits from workforce reductions in the prior year), a $15.4 gain from the sale of land and $9.6 of lower variable compensation expense.

There were no restructuring costs in year-to-date 2018 compared to net restructuring costs of $4.7 in year-to-date 2017. The year-to-date 2017 amount included costs related to the closure of a manufacturing facility in High Point, North Carolina, the closure of a manufacturing facility in Durlangen, Germany and the establishment of the Learning + Innovation Center in Munich, Germany.

Our year-to-date ~~2018~~2022 effective tax rate was ~~30.9%~~ (138.5)% compared to a year-to-date ~~2017~~2021 effective tax rate of ~~32.4%~~18.1%. The year-to-date ~~2018 rate was below the U.S. federal statutory~~2022 effective tax rate included $4.6 of ~~35% primarily due to favorable~~discrete tax ~~adjustments~~benefits. The year-to-date 2021 effective tax rate reflected the non-deductible nature of the goodwill impairment charge recorded in ~~year-to-date 2018. The year-to-date 2017 rate was below the U.S. federal statutory tax rate of 35% due to the same factor as the quarter.~~Q1 2021.

~~Table of Contents~~

~~STEELCASE INC.~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)~~

Interest Expense, Investment Income and Other Income, Net


	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 )
Interest expense in year-to-date 2021 included the impact of borrowings under our global credit facility in Q1 2021, which were repaid during Q2 2021. Other income, net in year-to-date 2021 included a $2.8 gain related to additional proceeds received in the prior year from the partial sale of an investment in an unconsolidated affiliate in 2018.

Business Segment Review

See Note 810 to the condensed consolidated financial statements for additional information regarding our business segments.

Americas


	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 %

Table of Content s

Operating income in the Americas ~~decreased~~declined by ~~$12.1 and $37.2, respectively,~~$2.7 in Q3 ~~2018 and year-to-date 2018~~2022 compared to the prior year. The decline ~~in the quarter~~ was driven by ~~lower volume and higher operating expenses. The year-to-date results were driven by the same factors as the quarter, as well as~~ higher cost of sales as a percentage of ~~revenue. After adjusting for~~revenue, partially offset by higher revenue and $11.4 of restructuring costs related to workforce reductions in the prior year. Excluding the impact of the restructuring costs in the prior year, adjusted operating income decreased by $14.1 in Q3 2022 compared to the prior year. Operating income in year-to-date 2022 represented a decrease of $44.1 compared to year-to-date 2021. The decrease was driven by higher cost of sales as a percentage of revenue and higher operating expenses, partially offset by higher revenue and $27.0 of restructuring costs in the prior year. Excluding the impact of restructuring costs in the prior year, ~~operating income of $47.6 and $147.1 in Q3 2018 and~~ year-to-date ~~2018, respectively, compared to~~2022 adjusted operating income represented a decrease of ~~$59.7 and $186.9 in~~$71.1 compared to the prior year.

The Americas revenue represented ~~71.6%~~67.8% of consolidated revenue in Q3 ~~2018. Revenue for~~2022. Q3 ~~2018 was $552.8 compared to $576.7 in Q3 2017. The 4% decrease in~~2022 revenue ~~was driven by continued declines in revenue associated with legacy furniture applications and reduced demand for day-to-day business. After adjusting for $1.5~~ of ~~favorable currency translation effects and a $3.3 unfavorable impact due to a divestiture, the organic revenue decrease in Q3 2018 was $22.1~~$500.3 represented an increase of $83.9 or 4%20% compared to the prior year.

Supply chain disruptions in the Americas in the current year resulted in extended lead-times, shipment delays and adjustments to delivery schedules which we estimate caused at least $35 of revenue to shift from Q3 2022 into Q4 2022 compared to at least $40 of revenue which we estimate shifted from Q2 2022 to Q3 2022 for similar reasons. Revenue in the prior year was negatively impacted by a delay of approximately $50 of shipments to Q4 2021 as a result of the temporary operations shutdown in Q3 2021. After adjusting for a $12.2 impact from acquisitions and $0.7 of currency translation effects, the organic revenue growth was $71.0 or 17% compared to the prior year. Year-to-date ~~2018~~2022 revenue of ~~$1,656.3~~$1,399.9 represented ~~a decrease~~an increase of ~~$11.8~~$18.4 or 1% compared to year-to-date ~~2017. The 1% decrease was driven by the same factors as the quarter.~~2021. After adjusting for ~~$0.8~~a $38.1 impact from acquisitions and $4.9 of ~~favorable~~ currency translation effects, ~~and a $3.3 unfavorable impact due to a divestiture,~~ the ~~year-to-date 2018~~ organic revenue ~~decrease~~decline was ~~$9.3~~$24.6 or 1%2% compared to the prior year.

Cost of sales as a percentage of revenue increased 40by 430 basis points in Q3 2018 compared to Q3 2017. The increase in the Americas was driven by the impacts of unfavorable shifts in business mix, lower volume and approximately $1 of higher commodity costs, partially offset by benefits associated with cost reduction efforts. Year-to-date 2018 cost of sales represented an increase of 100 basis points2022 compared to the prior ~~year and~~year. The increase was driven by approximately $6$27 of higher ~~commodity~~inflation costs, net of pricing benefits, and approximately $10 of higher ~~investments in support of product development~~freight and ~~manufacturing agility, unfavorable shifts in business mix,~~labor costs and ~~$3.4 of charges associated with the defined benefit plan annuitizations,~~inefficiencies due to supply chain disruptions, partially offset by the benefits ~~associated with ongoing cost reduction efforts~~of higher revenue. Cost of sales as a percentage of revenue increased by 370 basis points in year-to-date 2022 compared to year-to-date 2021. The increase was driven by approximately $51 of higher inflation costs, net of pricing benefits, and ~~$6.0~~approximately $15 of higher freight and labor costs and inefficiencies due to supply chain disruptions, partially offset by $5.6 of lower ~~warranty costs compared to the prior year.~~variable compensation expense.

Operating expenses in Q3 ~~2018~~2022 increased by ~~$1.7, or 140~~$18.1, but decreased by 40 basis points as a percentage of revenue, compared to the prior year. The current year ~~primarily due to~~included approximately ~~$11~~$13 of higher ~~investments in product development, sales,~~ marketing and ~~information technology that support our product development~~sales expenses, approximately $5 of higher discretionary spending and ~~growth strategies,~~employee costs in other functional areas and $2.8 from acquisitions, partially offset by ~~approximately $7~~$1.6 of lower variable compensation ~~expense and an approximately $2 favorable impact from a divestiture.~~expense. Operating expenses in year-to-date 2022 increased by ~~$18.9,~~$24.9, or ~~130~~150 basis points as a percentage of revenue, ~~in year-to-date 2018~~ compared to year-to-date 2021. The prior year included approximately $30 of lower employee costs as a result of temporary hour and pay reductions and gains of $6.7 from the sale of land. The current year included approximately $22 of higher marketing and sales expenses, approximately $7 of higher discretionary spending in other functional areas and $8.8 from acquisitions, partially offset by approximately $18 of lower employee costs (due to the benefits from workforce reductions in the prior ~~year~~year), a $15.4 gain from the sale of land and ~~was driven by the same factors as the quarter.~~

~~There were no restructuring costs recorded in the Americas in Q3 2018 or Q3 2017. There were no restructuring costs recorded in the Americas in year-to-date 2018 compared to restructuring costs~~$6.9 of ~~$2.6 in year-to-date 2017 associated with the closure of the High Point manufacturing facility.~~lower variable compensation expense.

EMEA

The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox, Coalesse and ~~Coalesse~~Viccarbe brands, with ~~an emphasis on freestanding~~a comprehensive portfolio of furniture, ~~systems, seating~~architectural and ~~storage solutions.~~technology products.


	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)	%

Table of Content s

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 )%

~~Operating results in~~ EMEA ~~declined~~operating income improved by $12.0 in Q3 ~~2018 and year-to-date 2018~~2022 compared to the prior year. The ~~decline in Q3 2018~~increase was driven by higher revenue, lower cost of sales as a percentage of revenue and ~~higher~~lower operating ~~expenses. The~~expenses as a percentage of revenue. Operating income in EMEA in year-to-date ~~decline was driven~~2022 improved by ~~higher operating expenses,~~$32.8 compared to year-to-date 2021, which included a ~~$4.0 gain on~~$17.6 goodwill impairment charge related to our Orangebox U.K. reporting unit. Adjusted for the ~~sale of~~goodwill impairment charge, operating income improved by $15.2, driven by the ~~Rosenheim property recorded in Q2 2018.~~

same factors as the quarter.

EMEA revenue represented ~~18.3%~~22.8% of consolidated revenue in Q3 ~~2018. Revenue for~~2022. Q3 ~~2018 was $141.1~~2022 revenue of $168.2 represented an increase of $24.9 or 17% compared to ~~$135.5~~the prior year. Revenue in the prior year was negatively impacted by a delay of approximately $10 of shipments to Q4 2021 as a result of the temporary operations shutdown in Q3 ~~2017.~~2021. The increase in ~~revenue~~Q3 2022 was broad-based across most markets, driven ~~primarily~~ by ~~favorable currency translation effects and higher revenue in Iberia, partially offset by a decline~~growth in the United Kingdom, including Orangebox, and ~~the Middle East.~~in Iberia. After adjusting for ~~$8.8~~$0.8 of ~~favorable~~ currency translation effects and a ~~$1.1 unfavorable~~$0.7 impact ~~due to divestitures,~~from an acquisition, the organic revenue ~~decline~~growth was ~~$2.1~~$25.0 or ~~1%. For year-to-date 2018, revenue declined slightly~~17% compared to the prior year. Year-to-date 2022 revenue increased by $62.0 or 17% compared to year-to-date 2021. The increase was broad-based across most markets, driven by the same factors as the quarter. The increase was also impacted by a delay of approximately $10 of shipments in the prior year asto Q4 2021. After adjusting for $15.6 of currency translation effects and a $0.7 impact from an acquisition, the organic revenue growth ~~in Eastern Europe and~~was $45.7 or 12% compared to the ~~Middle East was more than offset by lower volume in Germany, Central Europe and France.~~prior year.

Cost of sales as a percentage of revenue ~~increased 210~~decreased by 490 basis points ~~to 72.2% of revenue~~ in Q3 ~~2018~~2022 compared to the prior year. The ~~increase in EMEA~~improvement was driven by ~~unfavorable out-of-period accounting adjustments~~higher revenue, partially offset by approximately $1 of higher inflation costs, net of pricing benefits. Cost of sales as a percentage of revenue decreased by 320 basis points in ~~the current quarter~~year-to-date 2022 compared to ~~favorable items~~year-to-date 2021. The improvement was driven by higher revenue and approximately $3 of benefits from shifts in ~~the prior year. Benefits from gross margin improvement initiatives were~~business mix, partially offset by ~~various operational inefficiencies and~~approximately $4 of higher ~~commodity costs. Year-to-date 2018 cost~~inflation costs, net of ~~sales was 73.4% of revenue which is consistent with the prior year.~~pricing benefits.

Operating expenses in Q3 ~~2018 and year-to-date 2018~~2022 increased by ~~$4.5 and~~ $2.5, ~~respectively,~~but decreased by 260 basis points as a percentage of revenue, compared to the prior ~~year.~~year, which included approximately $2 of lower employee costs as a result of temporary hour and pay reductions. The ~~increase in Q3 2018 reflected higher costs related to a sales and dealer conference, product development, our new Learning + Innovation Center in Munich, and severance. The year-to-date 2018~~remaining increase was driven by ~~the same factors as the quarter,~~approximately $1 of higher discretionary spending and $0.7 from an acquisition, partially offset by $0.8 of lower variable compensation expense. Year-to-date 2022 operating expenses increased by $14.2, but decreased by 70 basis points as a ~~$4.0 gain on the sale~~percentage of ~~the Rosenheim property.~~

~~There were no restructuring costs in EMEA in Q3 2018~~revenue, compared to ~~restructuring benefits~~year-to-date 2021, which included approximately $8 of ~~$0.2 in Q3 2017.~~lower employee costs as a result of temporary hour and pay reductions. The ~~restructuring benefits in Q3 2017 represented favorable adjustments to employee separation costs relating to the establishment~~remaining increase was driven by approximately $4 of ~~the Learning + Innovation Center in Munich. There were no restructuring costs in EMEA in year-to-date 2018 compared to restructuring costs~~higher marketing and sales expenses, approximately $3 of ~~$2.1 in year-to-date 2017. The restructuring costs in year-to-date 2017 were associated with the closure~~higher discretionary spending and $0.7 from an acquisition, partially offset by $1.7 of ~~the Durlangen manufacturing facility and the establishment of the Learning + Innovation Center in Munich.~~lower variable compensation expense.

Other


	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)	%

Table of Content s

Operating income in ~~various applications globally, including static whiteboards and chalkboards sold through third party fabricators and distributors~~the Other category improved by $4.2 in Q3 2022 compared to the ~~primary~~prior year. The improvement was driven by higher revenue, lower cost of sales as a percentage of revenue and ~~secondary education markets and architectural panels and other special applications sold through general contractors for commercial and infrastructure projects.~~

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 %

lower operating expenses as a percentage of revenue. Year-to-date 2022 operating results decreased by $4.8 compared to year-to-date 2021, driven by higher cost of sales as a percentage of revenue, partially offset by higher revenue.

Revenue in the Other category represented ~~10.1%~~9.4% of consolidated revenue in Q3 ~~2018. Revenue in~~2022. Q3 ~~2018 increased $3.9 or 5% compared to the prior year and reflected growth from all three businesses. Year-to-date 2018~~2022 revenue of ~~$254.1~~$69.7 represented an increase of ~~$32.5~~$11.9 or ~~15%~~21% compared to the prior year. The increase ~~included growth from all three businesses, with particular strength coming from Asia Pacific (led~~was primarily driven by China, Designtex and Japan, partially offset by India, Southeast Asia and ~~China).~~

~~Operating results in~~Australia. After adjusting for $0.4 of currency translation effects, the ~~Other category declined slightly in Q3 2018~~organic revenue growth was $11.5 or 20% compared to the prior year. ~~Lower operating performance in Asia Pacific~~Year-to-date 2022 revenue of $189.0 represented an increase of $20.1 or 12% compared to year-to-date 2021. The increase was primarily driven by China, Designtex, Japan and Australia, partially offset by ~~improved operating performance at PolyVision. Operating results~~India and Southeast Asia. After adjusting for $3.6 of currency translation effects, the organic revenue growth was $16.5 or 10% compared to the prior year.

Cost of sales as a percentage of revenue decreased by 150 basis points in ~~year-to-date 2018 were~~Q3 2022 compared to the prior year. The improvement was driven by ~~strong performance~~higher revenue and approximately $1 of benefits from shifts in ~~Asia Pacific,~~business mix, partially offset by ~~lower income at Designtex~~$0.7 of higher inflation costs, net of pricing benefits, and $0.5 of higher freight costs and inefficiencies due to supply chain disruptions. Cost of sales as a percentage of revenue increased by 220 basis points in year-to-date 2022 compared to the prior year. The increase was driven by approximately $2 of higher inflation costs, net of pricing benefits, and $1.5 of higher freight costs and inefficiencies due to supply chain disruptions, partially offset by approximately $1 of benefits from shifts in business mix.

Operating expenses in Q3 2022 increased by $0.7, but decreased by 520 basis points as a percentage of revenue compared to the prior year, driven by higher discretionary spending. Operating expenses in year-to-date 2022 increased by $7.3, or 20 basis points as a percentage of revenue compared to year-to-date 2021, which included ~~$3.0~~approximately $6 of ~~charges related to~~lower employee costs as a result of temporary pay reductions. The remaining increase was driven by the ~~defined benefit plan annuitizations in Q1 2018.~~same factor as the quarter.

Corporate

Corporate ~~costs~~expenses include unallocated portions of shared service functions such as information technology, corporate facilities, finance, human resources, research, legal and customer aviation, plus deferred compensation expense and income or losses associated with COLI.


	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

The decrease in operating expenses in Q3 ~~2018~~2022 compared to the prior year was ~~primarily due to higher COLI income, partially offset~~driven by ~~higher deferred compensation expense. The decrease in year-to-date 2018 operating expenses was primarily due to~~$3.5 of lower deferred compensation expense, partially offset by $1.2 of lower COLI income. The increase in operating expenses in year-to-date 2022 was primarily driven by $3.5 of lower COLI income and higher ~~COLI income compared to~~employee costs as a result of temporary hour and pay reductions in the prior ~~year.~~year, partially offset by $2.3 of lower deferred compensation expense.

Liquidity and Capital Resources

~~Based on current business conditions, we target a range of $75 to $150 in cash~~Cash and cash equivalents ~~and short-term investments~~are used to fund day-to-day operations, including seasonal disbursements, particularly the annual payment of accrued variable compensation and retirement plan contributions in Q1 of each fiscal year. During normal business conditions, we target a range of $75 to $175 in cash and cash equivalents to fund operating requirements. In addition, we may carry additional liquidity for potential investments in strategic initiatives and as a cushion against economic ~~volatility.~~volatility, and from time to time, we may allow our cash and cash equivalents to temporarily fall below our targeted range to fund acquisitions and other growth initiatives.


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

Table of Content s

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

As of November ~~24, 2017~~,26, 2021, we held a total of ~~$244.1~~$275.2 in cash and cash ~~equivalents and no short-term investments. The short-term investments we held at the end of Q2 2018 were converted to cash and cash equivalents in Q3 2018 primarily to fund a pending acquisition.~~ equivalents. Of ~~our~~that total, ~~$244.1 in cash and cash equivalents, approximately 76%~~79% was located in the U.S. and the remaining ~~24%~~21% was located ~~outside of the U.S.,~~ primarily in China (including Hong ~~Kong, France,~~Kong), Mexico, Singapore, Malaysia, India and ~~China. The majority of amounts located outside the U.S. would be taxable if repatriated to the U.S. as dividends. However, such amounts~~Spain.

COLI investments are ~~considered available to repay intercompany debt, available to meet local working capital requirements or permanently reinvested in foreign subsidiaries.~~

recorded at their net cash surrender value. Our investments in COLI policies are intended to be utilized as a long-term funding source for long-term ~~employee~~ benefit obligations. However, COLI can also be used as a source of ~~liquidity for other purposes.~~liquidity. We believe the financial strength of the issuing insurance companies associated with our COLI policies is sufficient to meet their obligations. ~~COLI investments are recorded at their net cash surrender value.~~

Availability under credit facilities may be reduced related to compliance with applicable covenants.

See Liquidity Facilities for more information.

The following table summarizes our ~~condensed consolidated statements~~Condensed Consolidated Statements of ~~cash flows~~Cash Flows for the nine months ended November ~~24, 2017~~26, 2021 and November ~~25, 2016:~~27, 2020:

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

~~Cash provided by operating activities~~

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

The increased use of working capital in the current period was driven primarily by increases in accounts receivable from direct sell customers which have longer payment terms and increases in inventory to support new product launches and ensure continuity of supply. Changes in other operating assets and liabilities and deferred income taxes were primarily driven by timing of payments and collections related to various tax accounts and accrued expenses.


	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

Cash provided by (used in) operating activities


	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

Annual payments related to accrued variable compensation and retirement plan contributions totaled $50.4 in year-to-date 2022 compared to $148.0 in year-to-date 2021. In year-to-date 2022, we used cash in working capital, primarily driven by increased inventory levels in connection with supply chain disruptions and increased accounts receivable due to revenue growth.

Cash used in investing activities


	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 )

Table of Content s

Capital expenditures in year-to-date ~~2018 included~~2022 primarily related to investments in ~~our global~~ manufacturing operations, information technology, product development and ~~the new Learning + Innovation Center in Munich.~~

~~Liquidations of short-term investments~~customer-facing facilities. Capital expenditures were higher compared to year-to-date 2021 due to reduced spending in the prior year as a result of the COVID-19 pandemic. We sold land for proceeds of $17.2 in year-to-date ~~2018 due to the conversion of short-term investments to cash~~2022 and ~~cash equivalents~~$7.1 in ~~Q3 2018 primarily to fund a pending acquisition.~~

year-to-date 2021. Other investing activities in year-to-date ~~2018~~2022 included $7.0 of proceeds from ~~a divestiture~~COLI policy maturities. Other investing activities in ~~Q3 2018 and fixed asset disposals~~year-to-date 2021 included $3.3 of additional proceeds from the partial sale of an investment in Q2an unconsolidated affiliate in 2018.

Cash used in financing activities


	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 )

We paid dividends of ~~$0.1275~~$0.10, $0.145 and $0.145 per common share in ~~each of~~ Q1 ~~2018,~~2022, Q2 ~~2018~~2022 and Q3 ~~2018~~2022, respectively, and ~~$0.12~~$0.07, $0.10 and $0.10 per common share in Q1 ~~2017,~~2021, Q2 ~~2017~~2021 and Q3 ~~2017.~~2021, respectively.

In year-to-date ~~2018,~~2022, we ~~made~~repurchased 3,991,083 shares of Class A common stock, ~~repurchases of 2,393,969 shares, 393,969~~392,812 of which were made to satisfy participants' tax withholding obligations upon the ~~vesting~~issuance of shares under equity awards, pursuant to the terms of ~~the~~our Incentive Compensation Plan. In year-to-date ~~2017,~~2021, we ~~made~~repurchased 3,288,795 shares of Class A common stock, ~~repurchases of 3,506,661 shares, 506,661~~288,795 of which were made to satisfy participants' tax withholding obligations upon the ~~vesting~~issuance of shares under equity ~~awards.~~awards, pursuant to the terms of our Incentive Compensation Plan.

As of ~~the end of Q3 2018,~~November 26, 2021, we had ~~$99.2~~$7.6 of remaining availability under the $150 share repurchase program approved by our Board of Directors in Q4 2016.

Off-Balance Sheet Arrangements

During Q3 ~~2018~~,2022, no material change in our off-balance sheet arrangements occurred.

Contractual Obligations

During Q3 ~~2018,~~2022, no material change in our contractual obligations occurred.

Liquidity Facilities

Our total liquidity facilities as of November ~~24, 2017~~26, 2021 were:

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

We have a ~~$125~~$250.0 global committed ~~five-year~~ bank facility ~~which was entered into~~ in ~~Q3 2017.~~effect through 2025. As of November ~~24, 2017,~~26, 2021, there were no borrowings outstanding under the facility, ~~our availability was not limited,~~ and we were in compliance with all covenants under the facility.

We have a $12.5 committed bank facility related to a subsidiary, which has current availability of $4.7 based on eligible accounts receivable of the subsidiary. As of November 26, 2021, $1.7 was outstanding under the facility.

Table of Content s

The various uncommitted lines may be changed or canceled by the ~~banks~~applicable lenders at any time. There were no borrowings outstanding, ~~borrowings~~and there were $1.6 of guarantees which reduced our availability, under the various uncommitted ~~facilities~~lines as of November ~~24, 2017.~~26, 2021.

In addition to the available capacity reflected in the table above, we have credit agreements totaling ~~$46.0~~$33.9 which can be utilized to support bank guarantees, letters of credit ~~bank guarantees~~ or foreign exchange ~~contracts;~~contracts. As of November 26, 2021, we had $12.7 in outstanding letters of credit and bank guarantees ~~totaling $11.3 were outstanding under such facilities as of November 24, 2017.~~against these agreements. There were no draws onagainst our ~~standby~~ letters of credit during ~~Q3 2018.~~year-to-date 2022 or year-to-date 2021.

Total consolidated debt as of November ~~24, 2017~~26, 2021 was ~~$295.6.~~$482.9. Our debt primarily consists of ~~$249.0~~$444.6 in term notes due in ~~2021~~2029 with an effective interest rate of ~~6.6%~~5.6%. In addition, we have a term loan with a balance of $35.5 as of November ~~24, 2017 of $46.0. This~~26, 2021. The term loan has a floating interest rate based on 30-day LIBOR plus 1.20% and is due in Q1 2024. The term notes are unsecured, and the term loan is secured by our two corporate aircraft. The term notes and the term loan do not contain financial covenants and are not cross-defaulted to our other debt facilities.

Liquidity Outlook

~~Our current~~As of November 26, 2021, our total liquidity, which is comprised of cash and cash equivalents and ~~short-term investment balances,~~the cash surrender value of COLI, aggregated to $445.2. Our liquidity position, funds available under our credit facilities ~~funds available from COLI~~ and cash generated from ~~future~~ operations are expected to be sufficient to finance our known or foreseeable liquidity needs. ~~We continue to maintain a conservative approach to liquidity and have flexibility over significant uses of cash including our capital expenditures and discretionary operating expenses.~~

Our significant funding requirements include ~~a pending acquisition,~~ operating expenses, non-cancelable operating lease obligations, capital expenditures, variable compensation and retirement plan contributions, dividend payments and debt service obligations.

We ~~currently~~have flexibility over some of these uses of cash, including capital expenditures and discretionary operating expenses, to preserve our liquidity position. We expect capital expenditures to ~~approximate $80~~total approximately $60 to ~~$90~~$70 in ~~2018~~2022 compared to ~~$61~~$41.3 in 2017. This amount includes investments in our global manufacturing operations, product development and the new Learning + Innovation Center in Munich. We closely manage capital spending to ensure we are making investments that we believe will sustain our business and preserve our ability to introduce innovative new products.2021.

On December ~~19, 2017,~~16, 2021, we announced a quarterly dividend on our common stock of ~~$0.1275~~$0.145 per share, or approximately ~~$15.1,~~$16, to be paid in Q4 ~~2018.~~2022. Future dividends will be subject to approval by our Board of Directors.

Critical Accounting Estimates

During Q3 ~~2018,~~2022, there have been no changes in the items that we have identified as critical accounting estimates.

Recently Issued Accounting Standards

See Note 2 to the condensed consolidated financial statements.

Forward-looking Statements

From time to time, in written and oral statements, we discuss our expectations regarding future events and our plans and objectives for future operations. These forward-looking statements discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to us, based on current beliefs of management as well as assumptions made by, and information currently available to, us. Forward-looking statements generally are accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “possible,” “potential,” “predict,” “project,”" "target” or other similar words, phrases or expressions. Although we believe these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to vary from our expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters, pandemics and other Force Majeure events; cyberattacks; the COVID-19 pandemic and the actions taken by various governments and third parties to combat the pandemic; changes in the legal and regulatory environment; changes in raw ~~materials~~material, commodity and ~~commodity~~other input costs; currency fluctuations; changes in customer demand; and the other risks and contingencies detailed in this Report, our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. We undertake no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.


~~Item 3.~~	~~Quantitative and Qualitative Disclosures About Market Risk:~~

Item 3.Quantitative and Qualitative Disclosures About Market Risk:

The nature of market risks (i.e., the risk of loss arising from adverse changes in market rates and prices) faced by us as of November ~~24, 2017~~26, 2021 is the same as disclosed in our Annual Report on Form 10-K for the fiscal

Table of Contents

year ended February ~~24, 2017~~.26, 2021. We are exposed to market risks from foreign currency exchange, interest rates, commodity prices and fixed income and equity prices, which could affect our operating results, financial position and cash flows.

Foreign Exchange Risk

During Q3 ~~2018~~,2022, no material change in foreign exchange risk occurred.

Interest Rate Risk

During Q3 ~~2018~~,2022, no material change in interest rate risk occurred.

Commodity Price Risk

During Q3 ~~2018~~,2022, no material change in commodity price risk occurred.

Fixed Income and Equity Price Risk

During Q3 ~~2018~~,2022, no material change in fixed income and equity price risk occurred.


~~Item 4.~~	~~Controls and Procedures:~~

Item 4.Controls and Procedures:

(a) Disclosure Controls and Procedures. Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the ~~“Exchange Act”~~"Exchange Act")), as of November ~~24, 2017~~.26, 2021. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of November ~~24, 2017~~,26, 2021, our disclosure controls and procedures were effective in (1) recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in the reports that we file or submit under the Exchange Act and (2) ensuring that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) orand 15d-15(f) under the Exchange Act) during our third fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. Risk Factors:

For a more detailed explanation of the risks affecting our business, please refer to the Risk Factors section in our Annual Report on Form 10-K for the fiscal year ended February 26, 2021. There have not been any material changes to the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended February 26, 2021.

Table of Contents


~~Item 2.~~	~~Unregistered Sales of Equity Securities and Use of Proceeds:~~

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds:

Issuer Purchases of Equity Securities

The following is a summary of share repurchase activity during Q3 ~~2018~~:2022:


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

(1)In January 2016, the Board of Directors approved a share repurchase program, announced on January 19, 2016, permitting the repurchase of up to $150 of shares of our common stock. On June 28, 2021, we entered into a stock repurchase agreement with an independent third party broker under which the broker is authorized to repurchase up to $50 of shares of our common stock on our behalf during the period June 28, 2021 through December 20, 2021, subject to certain price, market and volume constraints specified in the agreement. The agreement was established in accordance with Rule 10b5-1 under the Exchange Act. Shares purchased under the agreement are part of our share repurchase program approved in January 2016.

(2)33,285 shares were repurchased to satisfy participants’ tax withholding obligations upon the issuance of shares under equity awards, pursuant to the terms of our Incentive Compensation Plan.

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) —

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Item 6.Exhibits:


~~(1)~~Exhibit No.			In January 2016, the Board of Directors approved a share repurchase program permitting the repurchase of up to $150 of shares of our common stock. This program has no specific expiration date. On October 27, 2017, we entered into a stock repurchase agreement with a third party broker under which the broker was authorized to repurchase up to 2 million shares of our common stock on our behalf during the period from from October 27, 2017 through March 22, 2018. The agreement was established in accordance with Rule 10b5-1 of the Exchange Act. Shares purchased under the agreement are part of the Company's share repurchase program approved in January 2016.Description


~~(2)~~10.1*			~~All of these shares were repurchased to satisfy participants’ tax withholding obligations upon the vesting of equity awards, pursuant to the terms of our Incentive Compensation Plan.~~

Letter agreement between Steelcase Inc. and Allan W. Smith, Jr., dated September 22, 2021 (1)


~~Item 6.~~10.2*			~~Exhibits:~~ Steelcase Inc. Incentive Compensation Plan Form of Restricted Stock Units Agreement (FY 2022) revised December 2021
31.1			Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2			Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1			Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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)

________________

~~See~~

* Management contract or compensatory plan or arrangement.

(1) Filed as Exhibit ~~Index.~~10.1 to the Company's Current Report on Form 8-K, as filed with the Securities and Exchange Commission on September 24, 2021 (commission file number 001-13873), and incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



STEELCASE INC.



By:			/s/ ~~Mark T. Mossing~~Robin L. Zondervan
			~~Mark T. Mossing~~ Robin L. Zondervan Vice President, Corporate Controller ~~and~~ & Chief Accounting Officer (Duly Authorized Officer and Principal Accounting Officer)

Date: December 20, ~~2017~~

~~Exhibit Index~~2021



~~Exhibit~~ ~~No.~~	~~Description~~

~~31.1~~	~~Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002~~
~~31.2~~	~~Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002~~
~~32.1~~	~~Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002~~
~~101.INS~~	~~XBRL Instance Document~~
~~101.SCH~~	~~XBRL Schema Document~~
~~101.CAL~~	~~XBRL Calculation Linkbase Document~~
~~101.LAB~~	~~XBRL Labels Linkbase Document~~
~~101.PRE~~	~~XBRL Presentation Linkbase Document~~
~~101.DEF~~	~~XBRL Definition Linkbase Document~~



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)		~~49508~~ (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

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


	(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


	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



þ☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		Page No.

PART I	Financial Information	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of Income for the Three and Nine Months Ended November ~~24, 2017~~26 , 2021 and November ~~25, 2016~~ 2 7 , 2020	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended November ~~24, 2017~~2 6 , 2021 and November ~~25, 2016~~27 , 2020	2
	Condensed Consolidated Balance Sheets as of November ~~24, 2017~~ 2 6 , 2021 and February ~~24, 2017~~26, 2021	3
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended November 2 6 , 2021 and November 2 7 , 2020	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended November ~~24, 2017~~ 2 6 , 2021 and November ~~25, 2016~~ 2 7 , 2020	45
	Notes to Condensed Consolidated Financial Statements	56
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1418
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2427
Item 4.	Controls and Procedures	2428

PART II	Other Information	2528
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2529
Item 6.	Exhibits	2530
Signatures		2631
~~Exhibit Index~~		27

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


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


3.	~~EARNINGS PER SHARE~~Customer Deposits
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



	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)


1.	~~BASIS OF PRESENTATION~~


2.	~~NEW ACCOUNTING STANDARDS~~


4.	~~ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)~~


5.	~~FAIR VALUE~~


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	$	—


	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


6.Roll-Forward of Fair Value Using Level 3 Inputs	~~INVENTORIES~~Auction Rate Security
Balance as of February 26, 2021	$	2.6
Unrealized gain on investment	0.1

Balance as of November 26, 2021	$	2.7


								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	%


~~(1)~~	~~Based on the U.S. government bond benchmark on the grant date.~~


~~(2)~~	~~Represents the historical price volatility of the Company’s common stock for the three-year period preceding the grant date.~~


	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


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


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
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	%