Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 29,November 27, 2020
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to
Commission File Number 1-13873

STEELCASE INC.
(Exact name of registrant as specified in its charter)
Michigan38-0819050
(State or other jurisdiction
of incorporation or organization)		(I.R.S. Employer Identification No.)
901 44th Street SE
Grand Rapids,Michigan49508
(Address of principal executive offices)(Zip Code)
(616) 247-2710
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A Common StockSCSNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☑     No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☑     No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑Accelerated filer☐Non-accelerated filer☐Smaller reporting company☐Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐     No ☑
As of June 29,December 18, 2020, Steelcase Inc. had 88,043,41588,362,019 shares of Class A Common Stock and 26,730,07526,546,657 shares of Class B Common Stock outstanding.

Table of Contents
STEELCASE INC.
FORM 10-Q


FOR THE QUARTERLY PERIOD ENDED May 29,November 27, 2020

INDEX
  Page No. 
   
1
Item 1.
1
 
1
2
 
3
4
 
5
 
6
Item 2.
17
Item 3.
2527
Item 4.
2628
   
2628
Item 1A.
2628
Item 2.
2629
Item 6.
2730
Signatures
2731


Table of Contents
PART I. FINANCIAL INFORMATION

Item 1.Financial Statements:

STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)
(in millions, except per share data)
Three Months Ended Three Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
RevenueRevenue$482.8  $824.3  Revenue$617.5 $955.2 $1,919.1 $2,777.5 
Cost of salesCost of sales360.1  565.9  Cost of sales437.3 639.1 1,339.7 1,869.5 
Restructuring costsRestructuring costs2.3 0 9.2 0 
Gross profitGross profit122.7  258.4  Gross profit177.9 316.1 570.2 908.0 
Operating expensesOperating expenses157.4  230.8  Operating expenses168.8 241.0 498.5 720.0 
Goodwill impairment chargeGoodwill impairment charge17.6  —  Goodwill impairment charge0 0 17.6 0 
Operating income (loss)(52.3) 27.6  
Restructuring costsRestructuring costs9.1 0 17.8 0 
Operating incomeOperating income0 75.1 36.3 188.0 
Interest expenseInterest expense(7.3) (6.7) Interest expense(6.6)(6.7)(20.7)(20.1)
Investment incomeInvestment income0.8  1.0  Investment income0.2 1.3 1.2 3.8 
Other income, netOther income, net4.0  2.2  Other income, net2.2 4.1 7.0 8.3 
Income (loss) before income tax expense (benefit)Income (loss) before income tax expense (benefit)(54.8) 24.1  Income (loss) before income tax expense (benefit)(4.2)73.8 23.8 180.0 
Income tax expense (benefit)Income tax expense (benefit)(16.7) 6.3  Income tax expense (benefit)(6.3)18.9 4.3 46.8 
Net income (loss)$(38.1) $17.8  
Earnings (loss) per share:  
Net incomeNet income$2.1 $54.9 $19.5 $133.2 
Earnings per share:Earnings per share:    
BasicBasic$(0.33) $0.15  Basic$0.02 $0.46 $0.17 $1.11 
DilutedDiluted$(0.33) $0.15  Diluted$0.02 $0.46 $0.17 $1.11 
Dividends declared and paid per common shareDividends declared and paid per common share$0.070  $0.145  Dividends declared and paid per common share$0.100 $0.145 $0.270 $0.435 
    
See accompanying notes to the condensed consolidated financial statements.
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STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
(in millions)

Three Months Ended Three Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Net income (loss)$(38.1) $17.8  
Net incomeNet income$2.1 $54.9 $19.5 $133.2 
Other comprehensive income (loss), net:Other comprehensive income (loss), net:Other comprehensive income (loss), net:
Unrealized gain (loss) on investmentsUnrealized gain (loss) on investments(0.2) 0.1  Unrealized gain (loss) on investments0.3 (0.1)0.2 (0.2)
Pension and other post-retirement liability adjustmentsPension and other post-retirement liability adjustments0.3  (0.2) Pension and other post-retirement liability adjustments(0.3)(1.1)(1.1)(1.6)
Derivative adjustments0.2  0.2  
Derivative amortizationDerivative amortization0.3 0.3 0.7 0.7 
Foreign currency translation adjustmentsForeign currency translation adjustments(8.9) (7.9) Foreign currency translation adjustments7.2 6.4 20.7 (7.9)
Total other comprehensive loss, net(8.6) (7.8) 
Comprehensive income (loss)$(46.7) $10.0  
Total other comprehensive income (loss), netTotal other comprehensive income (loss), net7.5 5.5 20.5 (9.0)
Comprehensive incomeComprehensive income$9.6 $60.4 $40.0 $124.2 

See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(Unaudited)(Unaudited)
May 29,
2020		February 28,
2020		November 27,
2020		February 28,
2020
ASSETSASSETSASSETS
Current assets:Current assets:  Current assets:  
Cash and cash equivalentsCash and cash equivalents$637.5  $541.0  Cash and cash equivalents$484.4 $541.0 
Accounts receivableAccounts receivable264.1  381.8  Accounts receivable283.6 381.8 
Allowance for doubtful accountsAllowance for doubtful accounts(9.4) (9.4) Allowance for doubtful accounts(9.3)(9.4)
InventoriesInventories246.7  215.0  Inventories235.0 215.0 
Prepaid expensesPrepaid expenses22.2  21.6  Prepaid expenses19.3 21.6 
Other current assetsOther current assets69.1  38.8  Other current assets71.8 38.8 
Total current assetsTotal current assets1,230.2  1,188.8  Total current assets1,084.8 1,188.8 
Property, plant and equipment, net of accumulated depreciation of $993.1 and $977.7  417.2  426.3  
Property, plant and equipment, net of accumulated depreciation of $1,040.2 and $977.7Property, plant and equipment, net of accumulated depreciation of $1,040.2 and $977.7415.3 426.3 
Company-owned life insurance ("COLI")Company-owned life insurance ("COLI")161.5  160.0  Company-owned life insurance ("COLI")167.7 160.0 
Deferred income taxesDeferred income taxes111.9  124.6  Deferred income taxes110.9 124.6 
GoodwillGoodwill215.1  233.6  Goodwill215.3 233.6 
Other intangible assets, net of accumulated amortization of $60.1 and $56.795.9  102.9  
Other intangible assets, net of accumulated amortization of $68.8 and $56.7Other intangible assets, net of accumulated amortization of $68.8 and $56.791.3 102.9 
Investments in unconsolidated affiliatesInvestments in unconsolidated affiliates53.5  52.3  Investments in unconsolidated affiliates55.4 52.3 
Right-of-use operating lease assetsRight-of-use operating lease assets224.4  237.9  Right-of-use operating lease assets213.1 237.9 
Other assetsOther assets29.8  39.0  Other assets31.5 39.0 
Total assetsTotal assets$2,539.5  $2,565.4  Total assets$2,385.3 $2,565.4 
LIABILITIES AND SHAREHOLDERS’ EQUITYLIABILITIES AND SHAREHOLDERS’ EQUITYLIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:Current liabilities:  Current liabilities:  
Accounts payableAccounts payable$155.9  $244.3  Accounts payable$200.8 $244.3 
Short-term borrowings and current portion of long-term debtShort-term borrowings and current portion of long-term debt247.7  2.9  Short-term borrowings and current portion of long-term debt2.6 2.9 
Current operating lease obligationsCurrent operating lease obligations41.8  43.1  Current operating lease obligations41.9 43.1 
Accrued expenses:Accrued expenses:      Accrued expenses:  
Employee compensationEmployee compensation62.6  191.7  Employee compensation95.2 191.7 
Employee benefit plan obligationsEmployee benefit plan obligations23.0  44.7  Employee benefit plan obligations24.0 44.7 
Accrued promotionsAccrued promotions26.2  35.3  Accrued promotions30.4 35.3 
Customer depositsCustomer deposits123.4  28.6  Customer deposits59.9 28.6 
OtherOther109.5  100.3  Other114.2 100.3 
Total current liabilitiesTotal current liabilities790.1  690.9  Total current liabilities569.0 690.9 
Long-term liabilities:Long-term liabilities:      Long-term liabilities:  
Long-term debt less current maturitiesLong-term debt less current maturities481.2  481.4  Long-term debt less current maturities480.2 481.4 
Employee benefit plan obligationsEmployee benefit plan obligations137.7  148.3  Employee benefit plan obligations147.9 148.3 
Long-term operating lease obligationsLong-term operating lease obligations203.9  214.0  Long-term operating lease obligations191.4 214.0 
Other long-term liabilitiesOther long-term liabilities45.6  60.4  Other long-term liabilities49.0 60.4 
Total long-term liabilitiesTotal long-term liabilities868.4  904.1  Total long-term liabilities868.5 904.1 
Total liabilitiesTotal liabilities1,658.5  1,595.0  Total liabilities1,437.5 1,595.0 
Shareholders’ equity:Shareholders’ equity:      Shareholders’ equity:  
Additional paid-in capitalAdditional paid-in capital—  28.4  Additional paid-in capital3.5 28.4 
Accumulated other comprehensive income (loss)Accumulated other comprehensive income (loss)(77.9) (69.3) Accumulated other comprehensive income (loss)(48.8)(69.3)
Retained earningsRetained earnings958.9  1,011.3  Retained earnings993.1 1,011.3 
Total shareholders’ equityTotal shareholders’ equity881.0  970.4  Total shareholders’ equity947.8 970.4 
Total liabilities and shareholders’ equityTotal liabilities and shareholders’ equity$2,539.5  $2,565.4  Total liabilities and shareholders’ equity$2,385.3 $2,565.4 
See accompanying notes to the condensed consolidated financial statements.
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STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
(in millions, except share and per share data)
Three Months EndedThree Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Changes in common shares outstanding:Changes in common shares outstanding:Changes in common shares outstanding:
Common shares outstanding, beginning of periodCommon shares outstanding, beginning of period117,202,000  116,766,610  Common shares outstanding, beginning of period114,776,546 117,243,960 117,202,000 116,766,610 
Common stock issuancesCommon stock issuances12,949  11,397  Common stock issuances21,351 10,167 48,241 33,039 
Common stock repurchasesCommon stock repurchases(3,244,389) (229,303) Common stock repurchases(44,201)(177,123)(3,288,795)(524,379)
Performance units issued as common stockPerformance units issued as common stock174,888  —  Performance units issued as common stock0 0 174,888 0 
Restricted units issued as common stockRestricted units issued as common stock614,101  765,051  Restricted units issued as common stock139,114 116,094 756,476 917,828 
Common shares outstanding, end of periodCommon shares outstanding, end of period114,759,549  117,313,755  Common shares outstanding, end of period114,892,810 117,193,098 114,892,810 117,193,098 
Changes in paid-in capital (1):Changes in paid-in capital (1):Changes in paid-in capital (1):
Paid-in capital, beginning of periodPaid-in capital, beginning of period$28.4  $16.4  Paid-in capital, beginning of period$1.7 $26.5 $28.4 $16.4 
Common stock issuancesCommon stock issuances0.2  0.2  Common stock issuances0.2 0.2 0.6 0.6 
Common stock repurchasesCommon stock repurchases(36.4) (4.0) Common stock repurchases(0.4)(2.8)(36.8)(8.7)
Performance units and restricted stock units expensePerformance units and restricted stock units expense7.8  9.3  Performance units and restricted stock units expense2.0 2.1 11.3 13.7 
OtherOther—  4.0  Other0 0 0 4.0 
Paid-in capital, end of periodPaid-in capital, end of period—  25.9  Paid-in capital, end of period3.5 26.0 3.5 26.0 
Changes in accumulated other comprehensive income (loss):Changes in accumulated other comprehensive income (loss):Changes in accumulated other comprehensive income (loss):
Accumulated other comprehensive income (loss), beginning of periodAccumulated other comprehensive income (loss), beginning of period(69.3) (47.3) Accumulated other comprehensive income (loss), beginning of period(56.3)(61.8)(69.3)(47.3)
Other comprehensive income (loss)Other comprehensive income (loss)(8.6) (7.8) Other comprehensive income (loss)7.5 5.5 20.5 (9.0)
Accumulated other comprehensive income (loss), end of periodAccumulated other comprehensive income (loss), end of period(77.9) (55.1) Accumulated other comprehensive income (loss), end of period(48.8)(56.3)(48.8)(56.3)
Changes in retained earnings:Changes in retained earnings:Changes in retained earnings:
Retained earnings, beginning of periodRetained earnings, beginning of period1,011.3  880.7  Retained earnings, beginning of period1,002.7 924.5 1,011.3 880.7 
Net income (loss)(38.1) 17.8  
Net incomeNet income2.1 54.9 19.5 133.2 
Dividends paidDividends paid(8.4) (17.3) Dividends paid(11.7)(17.4)(31.8)(51.9)
Common stock repurchasesCommon stock repurchases(5.9) —  Common stock repurchases— 0 (5.9)0 
Retained earnings, end of periodRetained earnings, end of period958.9  881.2  Retained earnings, end of period993.1 962.0 993.1 962.0 
Total shareholders' equityTotal shareholders' equity$881.0  $852.0  Total shareholders' equity$947.8 $931.7 $947.8 $931.7 

(1)Shares of our Class A and Class B common stock have no par value; thus, there are no balances for common stock.
See accompanying notes to the condensed consolidated financial statements.

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STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Three Months Ended Nine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019
OPERATING ACTIVITIESOPERATING ACTIVITIES  OPERATING ACTIVITIES  
Net income (loss)$(38.1) $17.8  
Net incomeNet income$19.5 $133.2 
Depreciation and amortizationDepreciation and amortization22.5  20.3  Depreciation and amortization64.1 62.9 
Goodwill impairment chargeGoodwill impairment charge17.6  —  Goodwill impairment charge17.6 0 
Restructuring costsRestructuring costs27.0 0 
Deferred income taxesDeferred income taxes12.4  0.5  Deferred income taxes17.9 13.9 
Non-cash stock compensationNon-cash stock compensation8.0  9.5  Non-cash stock compensation11.9 14.3 
Equity in income of unconsolidated affiliatesEquity in income of unconsolidated affiliates(1.8) (2.5) Equity in income of unconsolidated affiliates(6.7)(9.9)
Dividends received from unconsolidated affiliatesDividends received from unconsolidated affiliates0.7  4.6  Dividends received from unconsolidated affiliates5.2 8.8 
OtherOther(2.8) 0.7  Other(12.4)(3.6)
Changes in operating assets and liabilities:Changes in operating assets and liabilities:      Changes in operating assets and liabilities:  
Accounts receivableAccounts receivable115.8  (15.0) Accounts receivable105.2 (60.8)
InventoriesInventories(32.8) (17.7) Inventories(16.4)(25.2)
Other assetsOther assets(28.0) 1.1  Other assets(22.9)12.1 
Accounts payableAccounts payable(87.8) 23.2  Accounts payable(47.0)41.6 
Employee compensation liabilitiesEmployee compensation liabilities(137.2) (93.6) Employee compensation liabilities(130.5)(8.8)
Employee benefit obligationsEmployee benefit obligations(33.2) (24.2) Employee benefit obligations(25.2)(5.7)
Customer depositsCustomer deposits94.9  2.4  Customer deposits30.4 6.2 
Accrued expenses and other liabilitiesAccrued expenses and other liabilities(3.6) 1.9  Accrued expenses and other liabilities(0.5)39.8 
Net cash used in operating activities(93.4) (71.0) 
Net cash provided by operating activitiesNet cash provided by operating activities37.2 218.8 
INVESTING ACTIVITIESINVESTING ACTIVITIES      INVESTING ACTIVITIES  
Capital expendituresCapital expenditures(9.4) (14.8) Capital expenditures(32.1)(49.1)
Proceeds from disposal of fixed assetsProceeds from disposal of fixed assets7.3 1.0 
OtherOther6.7  1.1  Other7.0 2.0 
Net cash used in investing activitiesNet cash used in investing activities(2.7) (13.7) Net cash used in investing activities(17.8)(46.1)
FINANCING ACTIVITIESFINANCING ACTIVITIES      FINANCING ACTIVITIES  
Dividends paidDividends paid(8.4) (17.3) Dividends paid(31.8)(51.9)
Common stock repurchasesCommon stock repurchases(42.3) (4.0) Common stock repurchases(42.7)(8.7)
Borrowings on lines of creditBorrowings on lines of credit250.0  —  Borrowings on lines of credit250.0 0 
Repayments on lines of creditRepayments on lines of credit(5.0) —  Repayments on lines of credit(250.0)0 
OtherOther(0.6) (0.5) Other(2.1)(3.5)
Net cash provided by (used in) financing activities193.7  (21.8) 
Net cash used in financing activitiesNet cash used in financing activities(76.6)(64.1)
Effect of exchange rate changes on cash and cash equivalentsEffect of exchange rate changes on cash and cash equivalents(1.3) (0.7) Effect of exchange rate changes on cash and cash equivalents1.8 (0.8)
Net increase (decrease) in cash, cash equivalents and restricted cashNet increase (decrease) in cash, cash equivalents and restricted cash96.3  (107.2) Net increase (decrease) in cash, cash equivalents and restricted cash(55.4)107.8 
Cash and cash equivalents and restricted cash, beginning of period (1)Cash and cash equivalents and restricted cash, beginning of period (1)547.1  264.8  Cash and cash equivalents and restricted cash, beginning of period (1)547.1 264.8 
Cash and cash equivalents and restricted cash, end of period (2)Cash and cash equivalents and restricted cash, end of period (2)$643.4  $157.6  Cash and cash equivalents and restricted cash, end of period (2)$491.7 $372.6 

(1)These amounts include restricted cash of $6.1 and $3.5 as of February 28, 2020 and February 22, 2019, respectively.
(2)These amounts include restricted cash of $5.9$7.3 and $4.9 as of May 29,November 27, 2020 and May 24,November 22, 2019, respectively.
Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability claims.  Restricted cash is included as part of Other assets in the Condensed Consolidated Balance Sheets.
See accompanying notes to the condensed consolidated financial statements.
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.BASIS OF PRESENTATION
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions in Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended February 28, 2020 (“Form 10-K”). The Condensed Consolidated Balance Sheet as of February 28, 2020 was derived from the audited Consolidated Balance Sheet included in our Form 10-K.
As used in this Quarterly Report on Form 10-Q (“Report”), unless otherwise expressly stated or the context otherwise requires, all references to “Steelcase,” “we,” “our,” “Company” and similar references are to Steelcase Inc. and its subsidiaries in which a controlling interest is maintained. Unless the context otherwise indicates, reference to a year relates to the fiscal year, ended in February of the year indicated, rather than a calendar year. 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.
2.NEW ACCOUNTING STANDARDS
Adoption of New Accounting Standards
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740), which is intended to enhance various aspects of the accounting for income taxes. The new guidance updates the calculation of income taxes in an interim period when year-to-date losses exceed the anticipated loss for the year. We adopted this guidance in Q1 2021 on a prospective basis. The adoption of this guidance did not have a material effect on our consolidated financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. We adopted this guidance in Q1 2021 using a modified retrospective transition approach. The adoption of this guidance did not have a material effect on our consolidated financial statements. We estimate our allowance for doubtful accounts based upon several factors, including customer credit quality and historical write-off trends. We also use general information regarding industry trends, the economic environment and information gathered through our network of field-based employees. The adoption of this guidance did not significantly impact our accounting policies or methods utilized to determine the allowance for doubtful accounts.
Accounting Standards Issued But Not Yet Adopted
In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amended guidance is effective for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but is not expected to have a material effect on our consolidated financial statements.
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
3.REVENUE
Disaggregation of Revenue
The following table provides information about disaggregated revenue by product category for each of our reportable segments:
Product Category DataProduct Category DataThree Months EndedProduct Category DataThree Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
AmericasAmericasAmericas
Desking, benching, systems and storageDesking, benching, systems and storage$168.4  $310.8  Desking, benching, systems and storage$202.8 $351.7 $681.9 $1,058.5 
SeatingSeating96.5  171.7  Seating121.3 197.3 412.8 588.6 
Other (1)Other (1)69.0  93.8  Other (1)92.3 141.9 286.8 359.6 
EMEAEMEAEMEA
Desking, benching, systems and storageDesking, benching, systems and storage43.9  62.0  Desking, benching, systems and storage48.5 66.1 140.3 187.0 
SeatingSeating31.0  60.0  Seating61.7 60.7 138.5 174.0 
Other (1)Other (1)24.6  39.3  Other (1)33.1 41.6 89.9 122.9 
OtherOtherOther
Desking, benching, systems and storageDesking, benching, systems and storage10.7  14.5  Desking, benching, systems and storage12.4 16.7 33.5 46.9 
SeatingSeating12.2  19.5  Seating17.2 21.4 48.1 65.3 
Other (1)Other (1)26.5  52.7  Other (1)28.2 57.8 87.3 174.7 
$482.8  $824.3  $617.5 $955.2 $1,919.1 $2,777.5 

(1)The Other product category data by segment consists primarily of products sold by consolidated dealers, textiles and surface materials, worktools, architecture, technology, other uncategorized product lines and services.

Reportable geographic information is as follows:
Reportable Geographic RevenueReportable Geographic RevenueThree Months EndedReportable Geographic RevenueThree Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
United StatesUnited States$323.5  $535.9  United States$392.9 $705.4 $1,314.0 $1,922.1 
Foreign locationsForeign locations159.3  288.4  Foreign locations224.6 249.8 605.1 855.4 
$482.8  $824.3  $617.5 $955.2 $1,919.1 $2,777.5 

Contract Balances
At times, we receive payments from customers before revenue is recognized, resulting in the recognition of a contract liability (Customer deposits) presented in the Condensed Consolidated Balance Sheets.
Changes in the Customer deposits balance during the threenine months ended May 29,November 27, 2020 are as follows:
Customer Deposits
Balance as of February 28, 2020$28.6 
Increases dueRecognition of revenue related to beginning of year customer deposits received107.4 (25.7)
RevenueCustomer deposits received, net of revenue recognized during the period(12.6)57.0 
Balance as of May 29,November 27, 2020$123.459.9 
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
4.EARNINGS (LOSS) PER SHARE
Earnings (loss) per share is computed using the two-class method. The two-class method determines earnings (loss) per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Participating securities represent restricted stock units in which the participants have non-forfeitable rights to dividend equivalents during the performance period. Diluted earnings (loss) per share includes the effects of certain performance units in which the participants have forfeitable rights to dividend equivalents during the performance period.
 Three Months Ended
Computation of Earnings (Loss) per ShareMay 29,
2020		May 24,
2019
Net income (loss)$(38.1) $17.8  
Adjustment for earnings (loss) attributable to participating securities0.7  (0.3) 
Net income (loss) used in calculating earnings (loss) per share$(37.4) $17.5  
Weighted-average common shares outstanding including participating securities (in millions)117.3  119.4  
Adjustment for participating securities (in millions)(2.2) (2.1) 
Shares used in calculating basic earnings (loss) per share (in millions)115.1  117.3  
Effect of dilutive stock-based compensation (in millions)—  0.5  
Shares used in calculating diluted earnings (loss) per share (in millions)115.1  117.8  
Earnings (loss) per share:  
Basic$(0.33) $0.15  
Diluted$(0.33) $0.15  
Total common shares outstanding at period end (in millions)114.8  117.3  
Anti-dilutive performance units excluded from the computation of diluted earnings (loss) per share (in millions)0.3  —  
 Three Months EndedNine Months Ended
Computation of Earnings per ShareNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Net income$2.1 $54.9 $19.5 $133.2 
Adjustment for earnings attributable to participating securities0 (1.1)(0.4)(2.6)
Net income used in calculating earnings per share$2.1 $53.8 $19.1 $130.6 
Weighted-average common shares outstanding including participating securities (in millions)117.7 119.5 117.4 119.6 
Adjustment for participating securities (in millions)(2.9)(2.3)(2.5)(2.3)
Shares used in calculating basic earnings per share (in millions)114.8 117.2 114.9 117.3 
Effect of dilutive stock-based compensation (in millions)0.3 0.6 0.3 0.5 
Shares used in calculating diluted earnings per share (in millions)115.1 117.8 115.2 117.8 
Earnings per share:    
Basic$0.02 $0.46 $0.17 $1.11 
Diluted$0.02 $0.46 $0.17 $1.11 
Total common shares outstanding at period end (in millions)114.9 117.2 114.9 117.2 
Anti-dilutive performance units excluded from the computation of diluted earnings per share (in millions)0 0 0 0 
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
5.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended May 29,November 27, 2020:
Unrealized gain (loss) on investmentsPension and other post-retirement liability adjustmentsDerivative amortizationForeign currency translation adjustmentsTotalUnrealized gain (loss) on investmentsPension and other post-retirement liability adjustmentsDerivative amortizationForeign currency translation adjustmentsTotal
Balance as of February 28, 2020$(0.1) $(3.1) $(8.6) $(57.5) $(69.3) 
Balance as of August 28, 2020Balance as of August 28, 2020$(0.2)$(3.9)$(8.2)$(44.0)$(56.3)
Other comprehensive income (loss) before reclassificationsOther comprehensive income (loss) before reclassifications(0.2) 0.5  —  (8.9) (8.6) Other comprehensive income (loss) before reclassifications0.3 (0.1)0 7.2 7.4 
Amounts reclassified from accumulated other comprehensive income (loss)Amounts reclassified from accumulated other comprehensive income (loss)—  (0.2) 0.2  —  —  Amounts reclassified from accumulated other comprehensive income (loss)0 (0.2)0.3 0 0.1 
Net current period other comprehensive income (loss)Net current period other comprehensive income (loss)(0.2) 0.3  0.2  (8.9) (8.6) Net current period other comprehensive income (loss)0.3 (0.3)0.3 7.2 7.5 
Balance as of May 29, 2020$(0.3) $(2.8) $(8.4) $(66.4) $(77.9) 
Balance as of November 27, 2020Balance as of November 27, 2020$0.1 $(4.2)$(7.9)$(36.8)$(48.8)

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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended November 27, 2020:
Unrealized gain (loss) on investmentsPension and other post-retirement liability adjustmentsDerivative amortizationForeign currency translation adjustmentsTotal
Balance as of February 28, 2020$(0.1)$(3.1)$(8.6)$(57.5)$(69.3)
Other comprehensive income (loss) before reclassifications0.2 (0.4)0 20.7 20.5 
Amounts reclassified from accumulated other comprehensive income (loss)0 (0.7)0.7 0 0 
Net current period other comprehensive income (loss)0.2 (1.1)0.7 20.7 20.5 
Balance as of November 27, 2020$0.1 $(4.2)$(7.9)$(36.8)$(48.8)

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended May 29,November 27, 2020 and May 24,November 22, 2019:
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
May 29,
2020		May 24,
2019
Amortization of pension and other post-retirement liability adjustments
Actuarial losses (gains)$(0.3) $(0.7) Other income, net
0.1  0.2  Income tax expense (benefit)
(0.2) (0.5) 
Derivative amortization0.3  0.3  Interest expense
(0.1) (0.1) Income tax expense (benefit)
0.2  0.2  
Total reclassifications$—  $(0.3) 

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 EndedNine Months Ended
November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Amortization of pension and other post-retirement liability adjustments
Actuarial losses (gains)$(0.3)$(0.8)$(0.9)$(2.3)Other income, net
Prior service cost (credit)0 (0.1)(0.1)(0.2)Other income, net
0.1 0.4 0.3 0.7 Income tax expense (benefit)
(0.2)(0.5)(0.7)(1.8)
Derivative amortization0.4 0.4 1.0 1.0 Interest expense
(0.1)(0.1)(0.3)(0.3)Income tax expense (benefit)
0.3 0.3 0.7 0.7 
Realized gain on sale of investment0 0 0 (0.7)Investment income
0 0 0 0.2 Income tax expense (benefit)
0 0 0 (0.5)
Total reclassifications$0.1 $(0.2)$0 $(1.6)

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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
6.FAIR VALUE
The carrying amounts for many of our financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts and notes payable, short-term borrowings and certain other liabilities, approximate their fair value due to their relatively short maturities. Our foreign exchange forward contracts and long-term investments are measured at fair value in the Condensed Consolidated Balance Sheets.
Our total debt is carried at cost and was $728.9$482.8 and $484.3 as of May 29,November 27, 2020 and February 28, 2020, respectively. The fair value of our total debt is measured using a discounted cash flow analysis based on current market interest rates for similar types of instruments and was approximately $753$556.7 and $560$560.0 as of May 29,November 27, 2020 and February 28, 2020, respectively. The estimation of the fair value of our total debt is based on Level 2 fair value measurements.
We periodically use derivative financial instruments to manage exposures to movements in foreign exchange rates and interest rates. The use of these financial instruments modifies the exposure of these risks with the intention to reduce our risk of short-term volatility. We do not use derivatives for speculative or trading purposes.
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Assets and liabilities measured at fair value as of May 29,November 27, 2020 and February 28, 2020 are summarized below:
May 29, 2020 November 27, 2020
Fair Value of Financial InstrumentsFair Value of Financial InstrumentsLevel 1Level 2Level 3TotalFair Value of Financial InstrumentsLevel 1Level 2Level 3Total
Assets:Assets:    Assets:    
Cash and cash equivalentsCash and cash equivalents$637.5  $—  $—  $637.5  Cash and cash equivalents$484.4 $0 $0 $484.4 
Restricted cashRestricted cash5.9  —  —  5.9  Restricted cash7.3 0 0 7.3 
Foreign exchange forward contractsForeign exchange forward contracts—  1.2  —  1.2  Foreign exchange forward contracts0 3.1 0 3.1 
Auction rate securitiesAuction rate securities—  —  1.9  1.9  Auction rate securities0 0 2.4 2.4 
$643.4  $1.2  $1.9  $646.5   $491.7 $3.1 $2.4 $497.2 
Liabilities:Liabilities:Liabilities:
Foreign exchange forward contractsForeign exchange forward contracts$—  $(1.5) $—  $(1.5) Foreign exchange forward contracts$0 $(0.8)$0 $(0.8)
$—  $(1.5) $—  $(1.5)  $0 $(0.8)$0 $(0.8)
February 28, 2020 February 28, 2020
Fair Value of Financial InstrumentsFair Value of Financial InstrumentsLevel 1Level 2Level 3TotalFair Value of Financial InstrumentsLevel 1Level 2Level 3Total
Assets:Assets:    Assets:    
Cash and cash equivalentsCash and cash equivalents$541.0  $—  $—  $541.0  Cash and cash equivalents$541.0 $0 $0 $541.0 
Restricted cashRestricted cash6.1  —  —  6.1  Restricted cash6.1 0 0 6.1 
Foreign exchange forward contractsForeign exchange forward contracts—  1.2  —  1.2  Foreign exchange forward contracts0 1.2 0 1.2 
Auction rate securitiesAuction rate securities—  —  2.1  2.1  Auction rate securities0 0 2.1 2.1 
$547.1  $1.2  $2.1  $550.4   $547.1 $1.2 $2.1 $550.4 
Liabilities:Liabilities:    Liabilities:    
Foreign exchange forward contractsForeign exchange forward contracts$—  $(0.5) $—  $(0.5) Foreign exchange forward contracts$0 $(0.5)$0 $(0.5)
$—  $(0.5) $—  $(0.5)  $0 $(0.5)$0 $(0.5)

Below is a roll-forward of assets and liabilities measured at fair value using Level 3 inputs for the threenine months ended May 29,November 27, 2020:
Roll-Forward of Fair Value Using Level 3 InputsAuction Rate Securities
Balance as of February 28, 2020$2.1 
Unrealized lossgain on investments(0.2)0.3 
Balance as of May 29,November 27, 2020$1.92.4 
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
7.INVENTORIES
InventoriesInventoriesMay 29,
2020		February 28,
2020		InventoriesNovember 27,
2020		February 28,
2020
Raw materials and work-in-processRaw materials and work-in-process$136.9  $122.0  Raw materials and work-in-process$130.8 $122.0 
Finished goodsFinished goods130.3  112.8  Finished goods123.3 112.8 
267.2  234.8   254.1 234.8 
Revaluation to LIFORevaluation to LIFO20.5  19.8  Revaluation to LIFO19.1 19.8 
$246.7  $215.0   $235.0 $215.0 
The portion of inventories determined by the LIFO method was $109.0$106.5 and $93.8 as of May 29,November 27, 2020 and February 28, 2020, respectively.
8.GOODWILL
A summary of the changes in goodwill balances during the threenine months ended May 29,November 27, 2020, by reportable segment, are as follows:
GoodwillGoodwillAmericasEMEAOtherTotalGoodwillAmericasEMEAOtherTotal
GoodwillGoodwill$206.1  $283.5  $47.9  $537.5  Goodwill$206.1 $283.5 $47.9 $537.5 
Accumulated impairment lossesAccumulated impairment losses(1.7) (265.0) (37.2) (303.9) Accumulated impairment losses(1.7)(265.0)(37.2)(303.9)
Balance as of February 28, 2020Balance as of February 28, 2020204.4  18.5  10.7  233.6  Balance as of February 28, 2020204.4 18.5 10.7 233.6 
Impairment charge (1)Impairment charge (1)—  (17.6) —  (17.6) Impairment charge (1)0 (17.6)0 (17.6)
Currency translation adjustmentsCurrency translation adjustments—  (0.9) —  (0.9) Currency translation adjustments0.2 (0.9)0 (0.7)
GoodwillGoodwill206.1  282.6  47.9  536.6  Goodwill206.3 282.6 47.9 536.8 
Accumulated impairment lossesAccumulated impairment losses(1.7) (282.6) (37.2) (321.5) Accumulated impairment losses(1.7)(282.6)(37.2)(321.5)
Balance as of May 29, 2020$204.4  $—  $10.7  $215.1  
Balance as of November 27, 2020Balance as of November 27, 2020$204.6 $0 $10.7 $215.3 

_______________________________________
(1)In Q1 2021, we recorded a goodwill impairment charge in the EMEA segment related to the Orangebox U.K. reporting unit.
We evaluate goodwill for impairment annually in Q4, or earlier if conditions indicate it is necessary. In Q1 2021, we determined that a triggering event occurred which resulted in an interim impairment evaluation of goodwill for each of our reporting units. During Q1 2021, the market price of our Class A Common Stock declined significantly in connection with overall stock market trends related to the global economic impact of the COVID-19 pandemic. The reduction in revenue in Q1 2021 and changes to our forecasted revenue growth rates and expected operating margins related to the economic disruption of the COVID-19 pandemic were also factors that led to the completion of our interim impairment analysis.
For goodwill, we compare the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value, goodwill is not impaired, and no further testing is required. If the fair value of the reporting unit is less than the carrying value, the difference is recorded as an impairment loss. We estimate the fair value of our reporting units using the income approach, which calculates the fair value of each reporting unit based on the present value of its estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. For the evaluation that we conducted in Q1 2021, such conditions included the deterioration of industry and market conditions driven by the COVID-19 pandemic. The discount rates used are based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting units' ability to execute on the projected cash flows. In certain circumstances, we corroborate the results determined using the income approach with a market-based approach that uses observable comparable company information to support the appropriateness of the fair value estimates.

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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
As a result of our goodwill impairment testing, we determined that the carrying value of the Orangebox U.K. reporting unit (included in the EMEA segment) exceeded its fair value, resulting in a $17.6 goodwill impairment charge.charge in Q1 2021. Following the charge, the reporting unit had no remaining goodwill. WeDuring Q1 2021, we also tested the recoverability of the Orangebox U.K. long-lived assets (other than goodwill) and concluded that those assets were not impaired.
For each of our other reporting units, we determined that the fair value of the reporting unit substantially exceeded its carrying value, and no goodwill impairment existed. We also determined that no impairment existed related to the long-lived asset groups for any of our other reporting units.
9.SHORT-TERM BORROWINGS
Our $250.0 committed unsecured revolving syndicated credit facility expires in 2025. At our option, and subject to certain conditions, we may increase the aggregate commitment under the facility by up to $125.0 by obtaining at least one commitment from one or more lenders. During Q1 2021, we borrowed $250.0 under the facility and repaid $5.0. AsDuring Q2 2021, we repaid the remaining balance of May 29, 2020, our total borrowings$245.0 under the facility, and there were $245.0 and had an effective interest rateno borrowings outstanding under the facility as of 1.07%. November 27, 2020.
The facility does not include any restrictions on cash dividend payments or share repurchases. As of May 29,November 27, 2020, we were in compliance with all covenants under the facility.
10.INCOME TAXES
In Q1 2021, the U.S. government enacted tax legislation to provide economic stimulus and support to businesses during the COVID-19 pandemic, referred to as the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). In connection with our initial analysis of the impact of the CARES Act, in Q1 2021, we recorded a net tax benefitsbenefit of $10.0,$8.7 during the nine months ended November 27, 2020, driven primarily by provisions within the CARES Act which enable companies to carry back tax losses to years prior to the enactment of the Tax Cuts and Jobs Act when the federal statutory income tax rate was 35%.
We have historically calculated the provision for income tax expense (benefit) during interim periods by applying an estimate of the annualized effective income tax rate for the full fiscal year to the pre-tax income (loss) for the year-to-date period. In Q1 2021, we utilized the year-to-date actual effective income tax rate to calculate our income tax expense (benefit), as we determined that it was the most reliable estimate of the annual effective tax rate. We also adjusted certain net deferredIn Q2 2021 and Q3 2021, as a result of improved pre-tax income, we applied the estimated annualized effective tax assets utilizingrate for the fiscal year to pre-tax income for the year-to-date calculation and taking into consideration benefits under the CARES Act. The effective income tax rate for Q1 2021 was a benefit of 30.5% comparedperiod to an effectivecalculate our income tax rate of 26.1% in Q1 2020.expense.
11.SHARE-BASED COMPENSATION
Performance Units
In Q1 2021,During the nine months ended November 27, 2020, we issued two sets of performance units (“PSUs”) to certain employees. The first set, consisting of 303,973 PSUs, will be earned at the end of 2021 (the “2021 Short-Term PSUs”), and the second set, consisting of 529,500 PSUs, will be earned over a three-year performance period of 2021 through 2023 (the “2021 Long-Term PSUs”). The 2021 Short-Term PSUs will be earned based on our Compensation Committee’s qualitative assessment of management’s performance in 2021 in a number of specified areas (collectively, the “2021 Performance Measures”). The 2021 Long-Term PSUs will be earned based on achievement of certain performance conditions and then modified based on achievement of certain total shareholder return results relative to a comparison group of companies. The performance conditions for the 2021 Long-Term PSUs consist of the 2021 Performance Measures and performance conditions for 2022 and 2023 which will be established by the Compensation Committee in future periods. Due to the qualitative assessment, these awards are not considered granted under GAAP. When the Compensation Committee determines whether or not, and to what extent, the 2021 Performance Measures have been met, the 2021 Short-Term PSUs and one-third of the 2021 Long-Term PSUs will be considered granted. Once granted, the expense for these awards will be determined based on the target achieved and the fair value of the market condition on the grant date. The expense will be recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the remaining performance period, if any.


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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In Q1 2020,During the nine months ended November 22, 2019, we issued 296,600 PSUs to certain employees which will be earned over a three-year performance period of 2020 through 2022 (the “2020 Long-Term PSUs”). The 2020 Long-Term PSUs will be earned based on achievement of certain performance conditions and then modified based on achievement of certain total shareholder return results relative to a comparison group of companies. The performance conditions for the first year of the performance period were established in Q1 2020, and accordingly, 98,867 of the 2020 Long-Term PSUs were considered granted in Q1 2020. The 2021 Performance Measures have been established as the performance conditions for the second year of the performance period of the 2020 Long-Term PSUs, and accordingly, no additional portion of such awards have been considered granted. When the Compensation Committee determines whether or not, and to what extent, the 2021 Performance Measures have been met, an additional one-third of these awards will be considered granted. Once granted, the expense for these awards will be determined based on the target achieved and the fair value of the market condition on the grant date. The expense will be recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the remaining performance period. The performance conditions for 2022 for these awards will be established by the Compensation Committee in future periods.
The total PSU expense and associated tax benefit for all outstanding awards for the three and nine months ended May 29,November 27, 2020 and May 24,November 22, 2019 are as follows:
Three Months Ended Three Months EndedNine Months Ended
Performance UnitsPerformance UnitsMay 29,
2020		May 24,
2019		Performance UnitsNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
ExpenseExpense$0.2  $1.4  Expense$0.1 $0.3 $0.4 $2.0 
Tax benefitTax benefit0.1  0.4  Tax benefit0 0 0.1 0.5 
As of May 29,November 27, 2020, there was $0.4$0.2 of remaining unrecognized compensation cost related to nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of 1.41.0 years.
There were no PSU grants, vestings or forfeitures for the threenine months ended May 29,November 27, 2020.
Restricted Stock Units
During the threenine months ended May 29,November 27, 2020, we awarded 1,131,7001,371,077 restricted stock units ("RSUs"). to certain employees. RSUs have restrictions on transfer which lapse three years after the date of grant, at which time the RSUs will be issued as unrestricted shares of Class A Common Stock. RSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the requisite service period based on the value of the shares on the date of grant.
The total RSU expense and associated tax benefit for all outstanding awards for the three and nine months ended May 29,November 27, 2020 and May 24,November 22, 2019 are as follows:
Three Months Ended Three Months EndedNine Months Ended
Restricted Stock UnitsRestricted Stock UnitsMay 29,
2020		May 24,
2019		Restricted Stock UnitsNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
ExpenseExpense$7.6  $7.9  Expense$1.9 $1.8 $10.9 $11.7 
Tax benefitTax benefit2.3  2.1  Tax benefit0.5 0.5 2.8 3.1 
As of May 29,November 27, 2020, there was $8.8$8.1 of remaining unrecognized compensation cost related to nonvested RSUs, which is expected to be recognized over a weighted-average period of 2.0 years.
The RSU activity for the three months ended May 29, 2020 is as follows:
Nonvested UnitsTotalWeighted-Average
Grant Date
Fair Value
per Unit
Nonvested as of February 28, 20201,761,124  $15.28  
Granted1,131,700  9.03  
Vested(7,250) 16.44  
Forfeited(33,624) 14.57  
Nonvested as of May 29, 20202,851,950  $12.81  

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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The RSU activity for the nine months ended November 27, 2020 is as follows:
Nonvested UnitsTotalWeighted-Average
Grant Date
Fair Value
per Unit
Nonvested as of February 28, 20201,761,124 $15.28 
Granted1,371,077 9.49 
Vested(149,625)15.12 
Forfeited(42,668)14.34 
Nonvested as of November 27, 20202,939,908 $12.60 

12.LEASES
We have operating leases for corporate offices, sales offices, showrooms, manufacturing facilities, vehicles and equipment that expire at various dates through 2031. Certain lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours used) and others include rental payments adjusted periodically for inflationary indexes. Additionally, some leases include options to renew or terminate the leases which can be exercised at our discretion. The lease terms utilized in determining right-of-use assets and lease liabilities include the noncancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. Our leases do not contain any residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit discount rate, we use an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The estimated incremental borrowing rate represents the estimated rate of interest we would have had to pay to borrow on a collateralized basis an amount equal to the lease payments for a similar period of time.
As a result of the COVID-19 pandemic, the FASB staff issued a question and answer document (the "Staff Q&A") on the application of lease accounting guidance related to lease concessions provided as a result of the pandemic. The Staff Q&A provides interpretive guidance allowing companies the option to account for lease concessions related to the pandemic consistent with how those concessions would be accounted for under ASU 2016-02, Leases (Topic 842), as though enforceable rights and obligations for those concessions existed at the beginning of the contract (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). This interpretive guidance was issued in order to reduce the costs and complexities of applying lease modification accounting under Topic 842 to leases impacted by the effects of the pandemic. We have elected to apply the interpretive guidance provided in the Staff Q&A to rent deferrals orand abatements received related to the pandemic. Accordingly, we have not remeasured the related right-of-use asset or lease liability for the affected leases. The lease concessions were not material for the threenine months ended May 29,November 27, 2020.
The components of lease expense are as follows:
Three Months EndedThree Months EndedThree Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Operating lease costOperating lease cost$13.1  $12.1  Operating lease cost$12.8 $$38.8 $37.6 
Sublease rental incomeSublease rental income(0.3) (0.1) Sublease rental income(0.7)(0.4)(1.6)(0.8)
$12.8  $12.0  $12.1 $12.6 $37.2 $36.8 
Supplemental cash flow and other information related to leases are as follows:
Three Months EndedThree Months Ended
May 29,
2020		May 24,
2019
Cash flow information:
Operating cash flows used for operating leases$12.6  $11.9  
Leased assets obtained in exchange for new operating lease obligations$0.5  $39.6  
Three Months EndedThree Months Ended
May 29,
2020		May 24,
2019
Other information:
Weighted-average remaining term7.0 years7.4 years
Weighted-average discount rate4.0 %4.3 %

Three Months EndedNine Months Ended
November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Cash flow information:
Operating cash flows used for operating leases$12.6 $9.5 $37.3 $32.9 
Leased assets obtained in exchange for new operating lease obligations$0.7 $25.6 $2.6 $83.8 
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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
November 27,
2020		November 22,
2019
Other information:
Weighted-average remaining term6.7 years7.4 years
Weighted-average discount rate4.0 %4.1 %
The following table summarizes the future minimum lease payments as of May 29,November 27, 2020:
Fiscal year ending in FebruaryFiscal year ending in FebruaryAmount (1)Fiscal year ending in FebruaryAmount (1)
20212021$37.3  2021$12.6 
2022202247.2  202248.6 
2023202340.5  202342.0 
2024202435.1  202436.6 
2025202532.8  202534.2 
ThereafterThereafter89.8  Thereafter92.6 
Total lease paymentsTotal lease payments282.7  Total lease payments266.6 
Less interestLess interest37.0  Less interest33.3 
Present value of lease liabilitiesPresent value of lease liabilities$245.7  Present value of lease liabilities$233.3 

(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.
13.REPORTABLE SEGMENTS
Our reportable segments consist of the Americas segment, the EMEA segment and the Other category. Unallocated corporate costs are reported as Corporate.
The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a portfolio of integrated architecture, furniture and technology products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, Smith System, AMQ, Turnstone and Orangebox brands.
The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox and Coalesse brands, with an emphasis on freestanding furniture systems, storage and seating solutions.
The Other category includes Asia Pacific and Designtex. Asia Pacific serves customers in Asia and Australia primarily under the Steelcase brand with an emphasis on freestanding furniture systems, seating and storage solutions. 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. In Q1 2020, the Other category also included PolyVision which was sold during Q4 2020.
We primarily review and evaluate revenue and operating income by segment in both our internal review processes and for our external financial reporting. We also allocate resources primarily based on revenue and operating income. Total assets by segment include manufacturing and other assets associated with each segment.
Corporate costs include unallocated portions of shared service functions such as information technology, corporate facilities, finance, research, 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 and cash equivalents, COLI balances, fixed assets and right-of-use assets related to operating leases.

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STEELCASE INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Revenue and operating income (loss) for the three and nine months ended May 29,November 27, 2020 and May 24,November 22, 2019 and total assets as of May 29,November 27, 2020 and February 28, 2020 by segment are presented below:
Three Months Ended Three Months EndedNine Months Ended
Reportable Segment Statement of Operations DataReportable Segment Statement of Operations DataMay 29,
2020		May 24,
2019		Reportable Segment Statement of Operations DataNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
RevenueRevenue  Revenue  
AmericasAmericas$333.9  $576.3  Americas$416.4 $690.9 $1,381.5 $2,006.7 
EMEAEMEA99.5  161.3  EMEA143.3 168.4 368.7 483.9 
OtherOther49.4  86.7  Other57.8 95.9 168.9 286.9 
$482.8  $824.3   $617.5 $955.2 $1,919.1 $2,777.5 
Operating income (loss)Operating income (loss)  Operating income (loss)  
AmericasAmericas$(23.5) $32.4  Americas$13.8 $74.7 $84.9 $197.4 
EMEAEMEA(24.6) 0.8  EMEA(3.7)6.3 (31.8)1.6 
OtherOther(1.6) 2.3  Other(2.2)3.3 (2.7)14.5 
CorporateCorporate(2.6) (7.9) Corporate(7.9)(9.2)(14.1)(25.5)
$(52.3) $27.6   $0 $75.1 $36.3 $188.0 
Reportable Segment Balance Sheet DataReportable Segment Balance Sheet DataMay 29,
2020		February 28,
2020		Reportable Segment Balance Sheet DataNovember 27,
2020		February 28,
2020
Total assetsTotal assets  Total assets  
AmericasAmericas$1,085.2  $1,067.3  Americas$1,038.8 $1,067.3 
EMEAEMEA387.9  454.5  EMEA413.9 454.5 
OtherOther203.8  225.6  Other214.1 225.6 
CorporateCorporate862.6  818.0  Corporate718.5 818.0 
$2,539.5  $2,565.4   $2,385.3 $2,565.4 
14.     RESTRUCTURING ACTIVITIES
In Q2 2021, our Board of Directors approved a series of restructuring actions in response to continued order declines in the Americas compared to the prior year and continued economic uncertainty related to the COVID-19 pandemic. The restructuring actions included early retirements and voluntary and involuntary terminations of approximately 300 salaried employees and early retirements of approximately 160 hourly employees. We incurred $11.4 and $27.0 in restructuring costs in the Americas segment in connection with these actions during the three and nine months ended November 27, 2020, respectively, consisting of cash severance payments and payment of other separation-related benefits. We expect all of the actions to be completed by the end of 2021.
The following table details the changes in the restructuring reserve balance as of November 27, 2020:
Workforce reductions
Balance as of February 28, 2020$0 
Restructuring costs27.0 
Payments(25.5)
Balance as of November 27, 2020$1.5 

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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 28, 2020. 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 (1) organic revenue decline, which represents the change in revenue excluding 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.charges and restructuring 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 are reported as Corporate.
Results of Operations
Three Months Ended Three Months EndedNine Months Ended
Statement of Operations DataStatement of Operations DataMay 29,
2020		May 24,
2019		Statement of Operations DataNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
RevenueRevenue$482.8  100.0 %$824.3  100.0 %Revenue$617.5 100.0 %$955.2 100.0 %$1,919.1 100.0 %$2,777.5 100.0 %
Cost of salesCost of sales360.1  74.6  565.9  68.7  Cost of sales437.3 70.9 639.1 66.9 1,339.7 69.8 1,869.5 67.3 
Restructuring costsRestructuring costs2.3 0.3 — — 9.2 0.5 — — 
Gross profitGross profit122.7  25.4  258.4  31.3  Gross profit177.9 28.8 316.1 33.1 570.2 29.7 908.0 32.7 
Operating expensesOperating expenses157.4  32.6  230.8  28.0  Operating expenses168.8 27.3 241.0 25.2 498.5 26.0 720.0 25.9 
Goodwill impairment chargeGoodwill impairment charge17.6  3.6  —  —  Goodwill impairment charge— — — — 17.6 0.9 — — 
Operating income (loss)(52.3) (10.8) 27.6  3.3  
Restructuring costsRestructuring costs9.1 1.5 — — 17.8 0.9 — — 
Operating incomeOperating income— — 75.1 7.9 36.3 1.9 188.0 6.8 
Interest expenseInterest expense(7.3) (1.6) (6.7) (0.8) Interest expense(6.6)(1.1)(6.7)(0.7)(20.7)(1.2)(20.1)(0.7)
Investment incomeInvestment income0.8  0.2  1.0  0.1  Investment income0.2 — 1.3 0.1 1.2 0.1 3.8 0.1 
Other income, netOther income, net4.0  0.8  2.2  0.3  Other income, net2.2 0.4 4.1 0.4 7.0 0.4 8.3 0.3 
Income (loss) before income tax expense (benefit)Income (loss) before income tax expense (benefit)(54.8) (11.4) 24.1  2.9  Income (loss) before income tax expense (benefit)(4.2)(0.7)73.8 7.7 23.8 1.2 180.0 6.5 
Income tax expense (benefit)Income tax expense (benefit)(16.7) (3.5) 6.3  0.7  Income tax expense (benefit)(6.3)(1.0)18.9 2.0 4.3 0.2 46.8 1.7 
Net income (loss)$(38.1) (7.9)%$17.8  2.2 %
Earnings (loss) per share:    
Net incomeNet income$2.1 0.3 %$54.9 5.7 %$19.5 1.0 %$133.2 4.8 %
Earnings per share:Earnings per share:    
BasicBasic$(0.33)  $0.15   Basic$0.02  $0.46  $0.17  $1.11   
DilutedDiluted$(0.33)  $0.15   Diluted$0.02  $0.46  $0.17  $1.11   
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Q1 2021 Organic Revenue DeclineAmericasEMEAOtherConsolidated
Q1 2020 revenue$576.3  $161.3  $86.7  $824.3  
Divestiture—  —  (16.2) (16.2) 
Currency translation effects*(1.5) (5.5) (1.6) (8.6) 
   Q1 2020 revenue, adjusted574.8  155.8  68.9  799.5  
Q1 2021 revenue333.9  99.5  49.4  482.8  
Organic decline $$(240.9) $(56.3) $(19.5) $(316.7) 
Organic decline %(42)%(36)%(28)%(40)%
* Currency translation effects represent the estimated net effect of translating Q1 2020 foreign currency revenues using the average exchange rates during Q1 2021.
Q3 2021 Organic Revenue DeclineAmericasEMEAOtherConsolidated
Q3 2020 revenue$690.9 $168.4 $95.9 $955.2 
Divestiture— — (14.9)(14.9)
Currency translation effects*0.2 10.2 0.6 11.0 
   Q3 2020 revenue, adjusted691.1 178.6 81.6 951.3 
Q3 2021 revenue416.4 143.3 57.8 617.5 
Organic decline $$(274.7)$(35.3)$(23.8)$(333.8)
Organic decline %(40)%(20)%(29)%(35)%
* Currency translation effects represent the estimated net effect of translating Q3 2020 foreign currency revenues using the average exchange rates during Q3 2021.
Three Months Ended
Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss)May 29,
2020		May 24,
2019
Operating income (loss)$(52.3) $27.6  
Add: goodwill impairment charge17.6  —  
Adjusted operating income (loss)$(34.7) $27.6  
Year-to-date 2021 Organic Revenue DeclineAmericasEMEAOtherConsolidated
Year-to-date 2020 revenue$2,006.7 $483.9 $286.9 $2,777.5 
Divestiture— — (48.2)(48.2)
Currency translation effects*(2.0)8.1 (1.8)4.3 
Year-to-date 2020 revenue, adjusted2,004.7 492.0 236.9 2,733.6 
Year-to-date 2021 revenue1,381.5 368.7 168.9 1,919.1 
Organic decline $(623.2)(123.3)(68.0)(814.5)
Organic decline %(31)%(25)%(29)%(30)%
* Currency translation effects represent the estimated net effect of translating year-to-date 2020 foreign currency revenues using the average exchange rates during year-to-date 2021.
Reconciliation of Operating Income to Adjusted Operating IncomeThree Months EndedNine Months Ended
November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Operating income$— — %$75.1 7.9 %$36.3 1.9 %$188.0 6.8 %
Add: goodwill impairment charge— — — — 17.6 0.9 — — 
Add: restructuring costs11.4 1.8 — — 27.0 1.4 — — 
Adjusted operating income$11.4 1.8 %$75.1 7.9 %$80.9 4.2 %$188.0 6.8 %
Overview
During Q1 2021, the COVID-19 pandemic, and the actions taken by various governments and third parties to combat the spread of COVID-19 (includingand the related global economic uncertainty resulted in some cases, mandatory quarantines and other suspensions of non-essential business operations) led to significant disruptionsdeclines in our manufacturing and distribution operations and supply chains, including temporary reductions or suspensions of operations at many of our manufacturing and distribution locations around the world. In addition, many of our customers were unable to receive products from us or our dealers and delayed deliveries of existing orders. These disruptions and underlying economic uncertainty associated with the global pandemic resulted in a 41% decline in revenue and a 34% decline in orders (adjusted for the impact of a divestiture and currency translation effects) in Q1 2021 compared to the prior year, and we recorded a net loss of $38.1.
In March, weyear. We took a number of actions to conserve capital during the disruption caused by the pandemic. Those actions includedand reduce our cost structure in response to such events, including significantly reducing salaries substantially eliminating travel and events, overtime, temporary labor and annual merit increases and scaling back project spending. In May, we eased somein the first half of the salary reductions as allyear and substantially reducing discretionary spending. By the end of Q2 2021, we restored most of our manufacturingglobal salaried workforce to full pay, and distribution locations aroundin Q2 and Q3 2021, we implemented workforce reductions in the world were open; however, we intend to maintainAmericas which lowered our spending reductions while incoming order trends remain significantly impacted by the pandemic. We estimate these actions had the effect of reducing the operating loss recorded in Q1 2021annualized costs by approximately $70.$40. We recorded $11.4 and $27.0 of restructuring costs in Q3 2021 and year-to-date 2021, respectively, related to the workforce reductions.
As of May 29, 2020,
In Q3 2021, our backlog of customer orders was $751, or 11% higher thanrevenue declined 35% compared to the prior year, and we had break-even operating income. The revenue decline was driven by the impacts of the COVID-19 pandemic, as well as a delay of approximately $60 of revenue to Q4 2021 due to pandemic-related restrictions on manufacturing and delivery activities. We expecta temporary global operations shutdown we implemented to ship mostprotect our systems during a cyberattack we experienced during the quarter. The impact of the backlog during the second quarter.decline in revenue was partially mitigated by savings from cost reduction actions and lower variable compensation expense.
Q1

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Q3 2021 Compared to Q1Q3 2020
We recorded a net lossincome of $38.1$2.1 and a lossdiluted earnings per share of $0.33$0.02 in Q1Q3 2021 compared to net income of $17.8$54.9 and diluted earnings per share of $0.15$0.46 in the prior year. The Q3 2021 results also included a goodwill impairment charge related torestructuring costs of $11.4 in the EMEAAmericas segment which increasedhad the net loss by $17.6 and losseffect of decreasing diluted earnings per share by $0.15.$0.06, net of related tax benefits. Break-even operating income in Q3 2021 represented a $75.1 decline from the prior year. The decrease was driven by the impact of lower revenue and restructuring costs, partially offset by cost reduction actions implemented across all segments and lower variable compensation expense. Excluding the impact of the restructuring costs, adjusted operating lossincome of $52.3$11.4 in Q1Q3 2021 represented a decrease of $79.9$63.7 compared to operating income of $27.6 in the prior year. The decline was due to lower revenue across all segments and the goodwill impairment charge, partially offset by lower operating expenses. Adjusted for the goodwill impairment charge, the adjusted operating loss
Revenue of $34.7$617.5 in Q1Q3 2021 represented a decrease of $62.3 compared to operating income of $27.6 in the prior year.
Revenue of $482.8 in Q1 2021 represented a decrease of $341.5$337.7 or 41%35% compared to the prior year. The decline was broad-based across all segments, as government mandates in responsedriven by reduced demand due to underlying economic uncertainty related to the COVID-19 pandemic, significantly limited our abilityand approximately $60 of shipments were delayed to manufacture products and fulfill orders throughout muchQ4 2021 as a result of the world during the first quarter.temporary operations shutdown in Q3 2021. Revenue declined by 42%40% in the Americas, 38%15% in EMEA and 43%40% in the Other category compared to the prior year. After adjusting for a $16.2$14.9 impact from the divestiture of a divestiturePolyVision in Q4 2020 and $8.6$11.0 of unfavorable currency translation effects, the organic revenue decline was $316.7$333.8 or 40%35% compared to the prior year. The organic revenue decline was 42%40% in the Americas, 36%20% in EMEA and 28%29% in the Other category compared to the prior year.
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Cost of sales as a percentage of revenue increased by 590400 basis points to 74.6%70.9% of revenue in Q1Q3 2021 compared to Q1Q3 2020. The increase was driven by lower revenue, and absorption of fixed costs, as well as inefficienciesapproximately $12 of higher costs related to direct labor and logistics, utilization dueof which approximately $4 was related to the disruption experienced during the quarter,temporary operations shutdown, partially offset by pay reductions for salaried employees, favorable shifts in business mix,approximately $16 of lower overhead costs, pricing benefitsof which approximately $7 was attributable to lower wage and benefit expenses as a result of workforce reductions, and $10.8 of lower variable compensation expense. Cost of sales as a percentage of revenue increased by 730320 basis points in the Americas, 400590 basis points in EMEA and 30200 basis points in the Other category.
Operating expenses of $157.4$168.8 in Q1Q3 2021 represented a decrease of $73.4$72.2 compared to the prior year. The decrease was driven by reductionsan approximately $29 reduction in pay and hours across mostdiscretionary spending, $25.5 of the company's global salaried workforce, lower variable compensation expense near eliminationand approximately $12 of travel, eventslower wage and contract laborbenefit expenses as a result of workforce reductions.
We recorded restructuring costs and significant reductionsof $11.4 in the Americas segment in Q3 2021 related to project spending. Operating expenses also includedworkforce reduction actions taken as a $2.6 gain onresult of reduced demand due to the saleCOVID-19 pandemic. See Note 14 to the condensed consolidated financial statements for further information.
We recorded a tax benefit of land$6.3 in Q1 2021.
Our effective tax rate in Q1Q3 2021 was 30.5% compared to a Q1 2020 effective tax rateexpense of 26.1%.$18.9 in the prior year. The Q1Q3 2021 tax rate included $10.0 of netamount was primarily driven by benefits related toavailable under the U.S. Coronavirus Aid, Relief, and Economic Security Act (the "CARES" Act)"CARES Act"). See Note 10 to the condensed consolidated financial statements for further details.

Year-to-Date 2021 Compared to Year-to-Date 2020
We recorded year-to-date 2021 net income of $19.5 and diluted earnings per share of $0.17, compared to year-to-date 2020 net income of $133.2 and diluted earnings per share of $1.11. In year-to-date 2021, the results included: (1) a goodwill impairment charge related to the EMEA segment, which had the effect of decreasing net income by $17.6 and diluted earnings per share by $0.15, and (2) restructuring costs in the Americas segment, which had the effect of decreasing net income by $16.5 and diluted earnings per share by $0.14. Year-to-date 2021 operating income of $36.3 represented a decrease of $151.7 compared to the prior year. The decrease was due to lower revenue across all segments, restructuring costs and the goodwill impairment charge, partially offset by lower operating expenses and overhead costs. Excluding the impact of the restructuring costs and the impairment charge, adjusted operating income decreased by $107.1 compared to the prior year.
Year-to-date 2021 revenue of $1,919.1 represented a decrease of $858.4 or 31% compared to year-to-date 2020. The decline was broad-based across all segments due to the impacts of the COVID-19 pandemic. Revenue declined by 31% in the Americas, 24% in EMEA and 41% in the Other category. After adjusting for a $48.2 impact from the divestiture of PolyVision and $4.3 of currency translation effects, the organic revenue decline was $814.5 or 30% compared to the prior year. The organic revenue decline was 31% in the Americas, 25% in EMEA and 29% in the Other category.

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Cost of sales as a percentage of revenue increased by 250 basis points to 69.8% of revenue in year-to-date 2021 compared to the prior year. The increase was driven by lower revenue, as well as approximately $24 of higher costs related to direct labor and logistics, of which approximately $4 was related to the temporary operations shutdown in Q3 2021, partially offset by approximately $32 of lower overhead costs, of which approximately $15 was attributable to lower wage and benefit expenses related to workforce reductions and temporary salary reductions, pricing benefits and $20.0 of lower variable compensation expense. Cost of sales as a percentage of revenue increased by 210 basis points in the Americas, 370 basis points in EMEA and 190 basis points in the Other category.
Operating expenses of $498.5 in year-to-date 2021 represented a decrease of $221.5 compared to the prior year. The decrease was driven by approximately $88 of reduced discretionary spending, approximately $55 of lower wage and benefit expenses related to workforce reductions and temporary salary reductions and $48.8 of lower variable compensation expense. Operating expenses also included $6.7 of gains from the sale of land and $4.2 of higher COLI income in year-to-date 2021.
We recorded restructuring costs of $27.0 in the Americas segment in year-to-date 2021 related to workforce reduction actions taken as a result of reduced demand due to the COVID-19 pandemic. See Note 14 to the condensed consolidated financial statements for further information.
Our year-to-date 2021 effective tax rate was 18.1% compared to a year-to-date 2020 effective tax rate of 26.0%. The year-to-date 2021 tax rate reflected the non-deductible nature of the goodwill impairment charge recorded in Q1 2021 as well as $10.5 of benefits related to the restructuring costs and $8.7 of other net benefits primarily related to the CARES Act. See Note 10 to the condensed consolidated financial statements for further details.
Interest Expense, Investment Income and Other Income, Net
Three Months Ended Three Months EndedNine Months Ended
Interest Expense, Investment Income and Other Income, NetInterest Expense, Investment Income and Other Income, NetMay 29,
2020		May 24,
2019		Interest Expense, Investment Income and Other Income, NetNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Interest expenseInterest expense$(7.3) $(6.7) Interest expense$(6.6)$(6.7)$(20.7)$(20.1)
Investment incomeInvestment income0.8  1.0  Investment income0.2 1.3 1.2 3.8 
Other income (expense), net:Other income (expense), net:  Other income (expense), net:    
Equity in income of unconsolidated affiliatesEquity in income of unconsolidated affiliates1.9  2.5  Equity in income of unconsolidated affiliates2.6 4.1 6.6 9.8 
Foreign exchange gains0.1  0.3  
Foreign exchange gains (losses)Foreign exchange gains (losses)0.1 0.1 (1.0)0.2 
Net periodic pension and post-retirement credit, excluding service costNet periodic pension and post-retirement credit, excluding service cost—  0.2  Net periodic pension and post-retirement credit, excluding service cost— 0.2 (0.1)0.7 
Miscellaneous income (expense), netMiscellaneous income (expense), net2.0  (0.8) Miscellaneous income (expense), net(0.5)(0.3)1.5 (2.4)
Total other income, netTotal other income, net4.0  2.2  Total other income, net2.2 4.1 7.0 8.3 
Total interest expense, investment income and other income, netTotal interest expense, investment income and other income, net$(2.5) $(3.5) Total interest expense, investment income and other income, net$(4.2)$(1.3)$(12.5)$(8.0)
OtherInvestment income net increaseddecreased by $1.8$1.1 and $2.6, respectively, in Q3 2021 and year-to-date 2021 compared to the prior year due to lower market interest rates. Other income, net decreased by $1.9 in Q3 2021 compared to the prior year primarily due to lower income from unconsolidated affiliates. Year-to-date 2021 other income, net decreased by $1.3 compared to the prior year primarily due to lower income from unconsolidated affiliates and foreign exchange losses, partially offset by a $2.8 gain related to additional proceeds from the partial sale of an unconsolidated affiliate in 2018, partially offset by lower income from other unconsolidated affiliates. The increase in interest expense in Q1 2021 was primarily due to outstanding borrowings under our global credit facility during the quarter.2018.
Business Segment Review
See Note 13 to the condensed consolidated financial statements for additional information regarding our business segments.
Americas
The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a portfolio of integrated architecture, furniture and technology products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, Turnstone, Smith System, AMQ and Orangebox brands.
 Three Months Ended
Statement of Operations Data — AmericasMay 29,
2020		May 24,
2019
Revenue$333.9  100.0 %$576.3  100.0 %
Cost of sales252.3  75.6  393.4  68.3  
Gross profit81.6  24.4  182.9  31.7  
Operating expenses105.1  31.4  150.5  26.1  
Goodwill impairment charge—  —  —  —  
Operating income (loss)$(23.5) (7.0)%$32.4  5.6 %
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Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — AmericasThree Months Ended
May 29,
2020		May 24,
2019
Operating income (loss)$(23.5) (7.0)%$32.4  5.6 %
Add: goodwill impairment charge—  —  —  —  
Adjusted operating income (loss)$(23.5) (7.0)%$32.4  5.6 %
 Three Months EndedNine Months Ended
Statement of Operations Data — AmericasNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Revenue$416.4 100.0 %$690.9 100.0 %$1,381.5 100.0 %$2,006.7 100.0 %
Cost of sales290.4 69.7 459.3 66.5 950.8 68.8 1,339.0 66.7 
Restructuring costs2.3 0.6 — — 9.20.7 — — 
Gross profit123.7 29.7 231.6 33.5 421.5 30.5 667.7 33.3 
Operating expenses100.8 24.2 156.9 22.7 318.8 23.1 470.3 23.5 
Goodwill impairment charge— — — — — — — — 
Restructuring costs9.1 2.2 — — 17.81.3 — — 
Operating income$13.8 3.3 %$74.7 10.8 %$84.9 6.1 %$197.4 9.8 %
Reconciliation of Operating Income to Adjusted Operating Income — AmericasThree Months EndedNine Months Ended
November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Operating income$13.8 3.3 %$74.7 10.8 %$84.9 6.1 %$197.4 9.8 %
Add: goodwill impairment charge— — — — — — — — 
Add: restructuring costs11.4 2.8 — — 27.0 2.0 — — 
Adjusted operating income$25.2 6.1 %$74.7 10.8 %$111.9 8.1 %$197.4 9.8 %
Operating resultsincome in the Americas decreaseddeclined by $55.9$60.9 in Q1Q3 2021 compared to the prior year. The Q3 2021 results included $11.4 of restructuring costs. The remaining decline was driven by lower revenue, partially offset by lowercost reductions. Excluding the impact of the restructuring costs, adjusted operating expenses.
The Americas revenue represented 69.2% of consolidated revenueincome decreased by $49.5 in Q1 2021. Q1Q3 2021 revenue of $333.9 represented a decrease of $242.4 or 42%compared to the prior year. Operating income in year-to-date 2021 decreased by $112.5 compared to the prior year. The decrease reflectedwas driven by the same factors as the quarter. Excluding the impact of government mandatesthe restructuring costs, year-to-date 2021 adjusted operating income decreased by $85.5 compared to the prior year.
The Americas revenue represented 67.4% of consolidated revenue in responseQ3 2021. Q3 2021 revenue of $416.4 represented a decrease of $274.5 or 40% compared to the prior year. The decrease was driven by reduced industry demand due to the ongoing uncertainty related to the COVID-19 pandemic that significantly limited our abilityand approximately $50 of delayed shipments as a result of the temporary operations shutdown during Q3 2021. Year-to-date 2021 revenue of $1,381.5 represented a decrease of $625.2 or 31% compared to manufacture products and fulfill orders duringyear-to-date 2020. The decrease was driven by the firstsame factors as the quarter.
Cost of sales as a percentage of revenue increased by 730320 basis points in Q1Q3 2021 compared to Q1Q3 2020. The increase was driven by lower revenue, and absorption of fixed costs, as well as inefficienciesapproximately $11 of higher costs related to direct labor and logistics, utilization dueof which approximately $3 was related to the disruption experienced during the quarter,temporary operations shutdown, partially offset by favorable shifts in business mix, $12.4approximately $15 of lower overhead costs, of which approximately $7 was attributable to lower wage and benefit expenses related to workforce reductions and $9.8 of lower variable compensation expense. Year-to-date 2021 cost of sales as a percentage of revenue increased by 210 basis points compared to the prior year. The increase was driven by the lower revenue, as well as approximately $16 of higher costs related to direct labor and logistics, partially offset by pricing benefits, approximately $27 of lower overhead costs, of which approximately $13 was attributable to lower wage and $4.3benefit expenses related to workforce reductions and temporary salary reductions and $17.9 of lower variable compensation expense.
Operating expenses in Q1Q3 2021 decreased by $45.4$56.1 compared to the prior year. The decrease was driven by approximately $17$23 of savings from temporary salary and working hour reductions, $12.6 due to near elimination of travel, events and contract labor costs, $9.4lower discretionary spending, $19.9 of lower variable compensation expense and $6.7 dueapproximately $9 of lower wage and benefit expenses related to reduced project spending.workforce reductions. Year-to-date 2021 operating expenses decreased by $151.5 compared to the prior year. The decrease was driven by approximately $60 of lower discretionary spending, $38.2 of lower variable compensation expense and approximately $36 of lower wage and benefit expenses related to workforce reductions and temporary salary reductions. Operating expenses also included a $2.6 gain$6.7 from gains on the sale of land in Q1year-to-date 2021.
We recorded restructuring costs of $11.4 in Q3 2021 and $27.0 in year-to-date 2021 related to workforce reduction actions taken as a result of reduced demand due to the COVID-19 pandemic. See Note 14 to the condensed consolidated financial statements for further information.
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EMEA
The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox and Coalesse brands, with an emphasis on freestanding furniture systems, seating and storage solutions.
Three Months Ended Three Months EndedNine Months Ended
Statement of Operations Data — EMEAStatement of Operations Data — EMEAMay 29,
2020		May 24,
2019		Statement of Operations Data — EMEANovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
RevenueRevenue$99.5  100.0 %$161.3  100.0 %Revenue$143.3 100.0 %$168.4 100.0 %$368.7 100.0 %$483.9 100.0 %
Cost of salesCost of sales75.3  75.7  115.7  71.7  Cost of sales107.7 75.2 116.7 69.3 276.4 75.0 345.0 71.3 
Restructuring costsRestructuring costs— — — — — — — — 
Gross profitGross profit24.2  24.3  45.6  28.3  Gross profit35.6 24.8 51.7 30.7 92.3 25.0 138.9 28.7 
Operating expensesOperating expenses31.2  31.3  44.8  27.8  Operating expenses39.3 27.4 45.4 27.0 106.5 28.8 137.3 28.4 
Goodwill impairment chargeGoodwill impairment charge17.6  17.7  —  —  Goodwill impairment charge— — — — 17.6 4.8 — — 
Restructuring costsRestructuring costs— — — — — — — — 
Operating income (loss)Operating income (loss)$(24.6) (24.7)%$0.8  0.5 %Operating income (loss)$(3.7)(2.6)%$6.3 3.7 %$(31.8)(8.6)%$1.6 0.3 %
Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — EMEAReconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — EMEAThree Months EndedReconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — EMEAThree Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Operating income (loss)Operating income (loss)$(24.6) (24.7)%$0.8  0.5 %Operating income (loss)$(3.7)(2.6)%$6.3 3.7 %$(31.8)(8.6)%$1.6 0.3 %
Add: goodwill impairment chargeAdd: goodwill impairment charge17.6  17.7  —  —  Add: goodwill impairment charge— — — — 17.6 4.8 — — 
Add: restructuring costsAdd: restructuring costs— — — — — — — — 
Adjusted operating income (loss)Adjusted operating income (loss)$(7.0) (7.0)%$0.8  0.5 %Adjusted operating income (loss)$(3.7)(2.6)%$6.3 3.7 %$(14.2)(3.8)%$1.6 0.3 %
EMEA posted an operating loss of $24.6income declined by $10.0 in Q1Q3 2021 compared to operating income of $0.8 in the prior year. The results included a $17.6 goodwill impairment charge related to the Orangebox U.K. reporting unit. The remaining declinedecrease was driven by lower revenue, partially offset by lower operating expenses. Adjusted for the goodwill impairment charge, the adjusted operating loss of $7.0Operating income declined by $33.4 in Q1 2021 represented a decrease of $7.8 compared to operating income of $0.8 in the prior year.
EMEA revenue represented 20.6% of consolidated revenue in Q1 2021. Q1 2021 revenue of $99.5 represented a decrease of $61.8 or 38% compared to the prior year. The decrease reflected the impact of government mandates in response to the COVID-19 pandemic that significantly limited our ability to manufacture products and fulfill orders during the first quarter and $5.5 of unfavorable currency translation effects.
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Cost of sales as a percentage of revenue increased by 400 basis points to 75.7% of revenue in Q1year-to-date 2021 compared to the prior year. The decline was driven by lower revenue and absorptiona $17.6 goodwill impairment charge related to the Orangebox U.K. reporting unit in Q1 2021, partially offset by lower operating expenses. Excluding the impact of fixed coststhe goodwill impairment charge, the year-to-date 2021 adjusted operating loss of $14.2 represented a decline of $15.8 compared to the prior year.
EMEA revenue represented 23.2% of consolidated revenue in Q3 2021. Q3 2021 revenue of $143.3 represented a decrease of $25.1 or 15% compared to the prior year. The decrease was broad-based across most markets due to reduced demand from the COVID-19 pandemic and approximately $10 of delayed shipments as wella result of the temporary operations shutdown during Q3 2021, partially offset by approximately $17 of shipments for a project in the education sector that was in the order backlog at the beginning of the quarter. Year-to-date 2021 revenue declined by $115.2 or 24% compared to the prior year. The decrease was driven by the same factors as the quarter.
Cost of sales as a percentage of revenue increased by 590 basis points to 75.2% of revenue in Q3 2021 compared to the prior year. The increase was driven by lower revenue and unfavorable shifts in business mix associated with(which included a higher mix of project business). Cost of sales as a percentage of revenue increased by 370 basis points to 75.0% of revenue in year-to-date 2021 compared to the temporary closures,prior year. The increase was driven by lower revenue and unfavorable shifts in business mix, partially offset by approximately $2$5 of pricing benefits.lower overhead costs.
Operating expenses in Q1Q3 2021 decreased by $13.6$6.1 compared to the prior year. The decrease was driven by approximately $5$4 from lower discretionary spending, $2.5 of savingslower variable compensation expense and approximately $2 of lower wage and benefit expenses, partially offset by $2.8 of currency translation effects. Operating expenses for year-to-date 2021 decreased by $30.8 compared to the prior year. The decrease was driven by approximately $20 from lower discretionary spending, approximately $8 of lower wage and benefit expenses primarily related to temporary salary and workingwork hour reductions $3.6 due to reduced spending on projects, $2.1 due to near elimination of travel and events and $1.5$5.4 of lower variable compensation expense.

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Other
The Other category in Q1 2021 includes Asia Pacific and Designtex. Asia Pacific serves customers in Asia and Australia primarily under the Steelcase brand with an emphasis on freestanding furniture systems, seating and storage solutions. 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. In Q1 2020, the Other category also included PolyVision which was sold during Q4 2020. PolyVision manufactures ceramic steel surfaces for use in various applications globally, including static whiteboards and chalkboards sold through third party fabricators and distributors to the primary and secondary education markets and architectural panels and other special applications sold through general contractors for commercial and infrastructure projects.
Three Months Ended Three Months EndedNine Months Ended
Statement of Operations Data — OtherStatement of Operations Data — OtherMay 29,
2020		May 24,
2019		Statement of Operations Data — OtherNovember 27,
2020		November 22,
2019		August 28,
2020		November 22,
2019
RevenueRevenue$49.4  100.0 %$86.7  100.0 %Revenue$57.8 100.0 %$95.9 100.0 %$168.9 100.0 %$286.9 100.0 %
Cost of salesCost of sales32.5  65.8  56.8  65.5  Cost of sales39.2 67.8 63.1 65.8 112.5 66.6 185.5 64.7 
Restructuring costsRestructuring costs— — — — — — — — 
Gross profitGross profit16.9  34.2  29.9  34.5  Gross profit18.6 32.2 32.8 34.2 56.4 33.4 101.4 35.3 
Operating expensesOperating expenses18.5  37.4  27.6  31.8  Operating expenses20.8 36.0 29.5 30.8 59.1 35.0 86.9 30.2 
Goodwill impairment chargeGoodwill impairment charge—  —  —  —  Goodwill impairment charge— — — — — — — — 
Restructuring costsRestructuring costs— — — — — — — — 
Operating income (loss)Operating income (loss)$(1.6) (3.2)%$2.3  2.7 %Operating income (loss)$(2.2)(3.8)%$3.3 3.4 %$(2.7)(1.6)%$14.5 5.1 %
Reconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — OtherReconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — OtherThree Months EndedReconciliation of Operating Income (Loss) to Adjusted Operating Income (Loss) — OtherThree Months EndedNine Months Ended
May 29,
2020		May 24,
2019		November 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Operating income (loss)Operating income (loss)$(1.6) (3.2)%$2.3  2.7 %Operating income (loss)$(2.2)(3.8)%$3.3 3.4 %$(2.7)(1.6)%$14.5 5.1 %
Add: goodwill impairment chargeAdd: goodwill impairment charge—  —  —  —  Add: goodwill impairment charge— — — — — — — — 
Add: restructuring costsAdd: restructuring costs— — — — — — — — 
Adjusted operating income (loss)Adjusted operating income (loss)$(1.6) (3.2)%$2.3  2.7 %Adjusted operating income (loss)$(2.2)(3.8)%$3.3 3.4 %$(2.7)(1.6)%$14.5 5.1 %
The Other category posted an operating loss of $1.6$2.2 in Q1Q3 2021 compared to operating income of $2.3$3.3 in the prior year, which included $1.8$1.2 from PolyVision. The remaining decline was driven by lower revenue, partially offset by lower operating expenses. Year-to-date 2021 operating results decreased by $17.2 compared to the prior year. The prior year results included $5.6 from PolyVision and the remaining decrease was driven by the same factors as the quarter.
Revenue in the Other category represented 10.2%9.4% of consolidated revenue in Q1Q3 2021. Q1Q3 2021 revenue of $49.4$57.8 represented a decrease of $37.3$38.1 or 43%40% compared to the prior year. The decrease was driven by lower revenue in both Asia Pacific and Designtex as a $16.2result of reduced demand due to the COVID-19 pandemic and a $14.9 impact from the PolyVision divestiture and lower revenue in Asia Pacific (driven by China and Southeast Asia) and Designtex due to the impact of government mandates in response to the COVID-19 pandemic that significantly limited our ability to manufacture products and fulfill orders during the first quarter.divestiture. After adjusting for a $16.2the $14.9 impact of the divestiture and $1.6$0.6 of unfavorable currency translation effects, the organic revenue decline was $19.5$23.8 or 28%29% compared to the prior year. Year-to-date 2021 revenue of $168.9 represented a decrease of $118.0 or 41%, compared to the prior year. The decline was driven by the same factors as the quarter. After adjusting for the $48.2 impact of the divestiture and $1.8 of currency translation effects, the organic revenue decline was $68.0 or 29%, compared to the prior year.
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Operating expenses in Q3 2021 decreased by $8.7 compared to the prior year. The decrease was driven by approximately $4 from lower discretionary spending and a $2.9 impact from the PolyVision divestiture. Operating expenses for year-to-date 2021 decreased by $27.8 compared to the prior year, driven by approximately $10 of lower discretionary spending, a $8.8 impact from the PolyVision divestiture and approximately $6 of lower wage and benefit expenses related to temporary salary reductions.
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Corporate
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.
 Three Months Ended
Statement of Operations Data — CorporateMay 29,
2020		May 24,
2019
Operating expenses$2.6  $7.9  
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 Three Months EndedNine Months Ended
Statement of Operations Data — CorporateNovember 27,
2020		November 22,
2019		November 27,
2020		November 22,
2019
Operating expenses$7.9 $9.2 $14.1 $25.5 
The decrease in operating expenses in Q1Q3 2021 compared to the prior year was driven by $2.0 of lower variable compensation expense and $1.2 of lower deferred compensation expense, partially offset by $1.8 of lower COLI income. The decrease for year-to-date 2021 was due primarilydriven by $4.2 of higher COLI income, $3.0 of lower variable compensation expense, lower wage and benefit expenses related to temporary salary and working hour reductions near elimination of travel, events and contract labor and lower discretionary spending, across several functions.partially offset by an $1.2 increase in deferred compensation expense.
Liquidity and Capital Resources
Cash and cash equivalents 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, 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 SourcesLiquidity SourcesMay 29,
2020		February 28,
2020		Liquidity SourcesNovember 27,
2020		February 28,
2020
Cash and cash equivalentsCash and cash equivalents$637.5  $541.0  Cash and cash equivalents$484.4 $541.0 
Company-owned life insuranceCompany-owned life insurance161.5  160.0  Company-owned life insurance167.7 160.0 
Availability under credit facilitiesAvailability under credit facilities23.3  273.3  Availability under credit facilities267.9 273.3 
Total liquidity$822.3  $974.3  
Total liquidity sources availableTotal liquidity sources available$920.0 $974.3 
As of May 29,November 27, 2020, we held a total of $637.5$484.4 in cash and cash equivalents. Of that total, approximately 90%88% was located in the U.S. and the remaining 10%12% was located primarily in Mexico, China (including Hong Kong), Mexico, India, Malaysia and the U.K. and Canada.
COLI investments are recorded at their net cash surrender value. A portion of our investments in COLI policies are intended to be utilized as a long-term funding source for long-term benefit obligations. However, COLI can also be used as a source of liquidity. We believe the financial strength of the issuing insurance companies associated with our COLI policies is sufficient to meet their obligations.
Availability under credit facilities may be reduced related to compliance with applicable covenants. See Liquidity Facilities for more information.
The following table summarizes our Condensed Consolidated Statements of Cash Flows for the threenine months ended May 29,November 27, 2020 and May 24,November 22, 2019:
Three Months Ended Nine Months Ended
Cash Flow DataCash Flow DataMay 29,
2020		May 24,
2019		Cash Flow DataNovember 27,
2020		November 22,
2019
Net cash provided by (used in):Net cash provided by (used in):  Net cash provided by (used in):  
Operating activitiesOperating activities$(93.4) $(71.0) Operating activities$37.2 $218.8 
Investing activitiesInvesting activities(2.7) (13.7) Investing activities(17.8)(46.1)
Financing activitiesFinancing activities193.7  (21.8) Financing activities(76.6)(64.1)
Effect of exchange rate changes on cash and cash equivalentsEffect of exchange rate changes on cash and cash equivalents(1.3) (0.7) Effect of exchange rate changes on cash and cash equivalents1.8 (0.8)
Net increase (decrease) in cash, cash equivalents and restricted cashNet increase (decrease) in cash, cash equivalents and restricted cash96.3  (107.2) Net increase (decrease) in cash, cash equivalents and restricted cash(55.4)107.8 
Cash, cash equivalents and restricted cash, beginning of periodCash, cash equivalents and restricted cash, beginning of period547.1  264.8  Cash, cash equivalents and restricted cash, beginning of period547.1 264.8 
Cash, cash equivalents and restricted cash, end of periodCash, cash equivalents and restricted cash, end of period$643.4  $157.6  Cash, cash equivalents and restricted cash, end of period$491.7 $372.6 

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Cash used inprovided by operating activities
Three Months Ended Nine Months Ended
Cash Flow Data — Operating ActivitiesCash Flow Data — Operating ActivitiesMay 29,
2020		May 24,
2019		Cash Flow Data — Operating ActivitiesNovember 27,
2020		November 22,
2019
Net income (loss)$(38.1) $17.8  
Net incomeNet income$19.5 $133.2 
Depreciation and amortizationDepreciation and amortization22.5  20.3  Depreciation and amortization64.1 62.9 
Goodwill impairment chargeGoodwill impairment charge17.6  —  Goodwill impairment charge17.6 — 
Restructuring costsRestructuring costs27.0 — 
Changes in accounts receivable, inventories and accounts payableChanges in accounts receivable, inventories and accounts payable(4.8) (9.5) Changes in accounts receivable, inventories and accounts payable41.8 (44.4)
Changes in employee compensation liabilities(137.2) (93.6) 
Employee compensation liabilitiesEmployee compensation liabilities(130.5)(8.8)
Employee benefit obligationsEmployee benefit obligations(33.2) (24.2) Employee benefit obligations(25.2)(5.7)
Customer depositsCustomer deposits94.9  2.4  Customer deposits30.4 6.2 
Changes in other operating assets and liabilitiesChanges in other operating assets and liabilities(15.1) 15.8  Changes in other operating assets and liabilities(7.5)75.4 
Net cash used in operating activities$(93.4) $(71.0) 
Net cash provided by operating activitiesNet cash provided by operating activities$37.2 $218.8 
Cash usedIn year-to-date 2021, we generated cash from working capital, primarily driven by collections on accounts receivable. We also offered deposit incentives to our dealers which drove a significant increase in operating activitiescustomer deposits in Q1 and Q2 2021, which moderated in Q3 2021 as the incentives were discontinued. In year-to-date 2020, we utilized cash in working capital, primarily driven by strong revenue growth during Q1 2021 included seasonal disbursements, particularly $148.0 in annualthat period. Annual payments related to accrued variable compensation and retirement plan contributions, which were highertypically made in Q1 each year, totaled $148.0 in year-to-date 2021 as compared to Q1$114.3 in year-to-date 2020. During Q1In year-to-date 2021, we offered additional cash discountspaid $25.5 related to severance and other separation-related benefits for workforce reductions in our dealersAmericas segment which drove a significant increaseis reflected in customer deposits.the change in employee compensation liabilities. Changes in other operating assets and liabilities alsoin year-to-date 2021 reflects a net $29.5$31.2 increase in income taxes receivable driven primarily by the ability to carry back tax losses to additional years as a result of the CARES Act.taxes receivable.
Cash used in investing activities
Three Months Ended Nine Months Ended
Cash Flow Data — Investing ActivitiesCash Flow Data — Investing ActivitiesMay 29,
2020		May 24,
2019		Cash Flow Data — Investing ActivitiesNovember 27,
2020		November 22,
2019
Capital expendituresCapital expenditures$(9.4) $(14.8) Capital expenditures$(32.1)$(49.1)
Proceeds from disposal of fixed assetsProceeds from disposal of fixed assets7.3 1.0 
OtherOther6.7  1.1  Other7.0 2.0 
Net cash used in investing activitiesNet cash used in investing activities$(2.7) $(13.7) Net cash used in investing activities$(17.8)$(46.1)
Capital expenditures in Q1year-to-date 2021 were lower compared to the prior year due to our continued focus on reduced spending and were primarily related to investments in manufacturing operations, product development and customer-facing facilities and product development.facilities. We sold land for proceeds of $7.1 in year-to-date 2021. Other investing activities in Q1year-to-date 2021 included $2.7 of proceeds from the sale of land and $3.3 of additionaladditional proceeds from the partial sale of an unconsolidated affiliate in 2018.
Cash provided by (used in)used in financing activities
Three Months Ended Nine Months Ended
Cash Flow Data — Financing ActivitiesCash Flow Data — Financing ActivitiesMay 29,
2020		May 24,
2019		Cash Flow Data — Financing ActivitiesNovember 27,
2020		November 22,
2019
Dividends paidDividends paid$(8.4) $(17.3) Dividends paid$(31.8)$(51.9)
Common stock repurchasesCommon stock repurchases(42.3) (4.0) Common stock repurchases(42.7)(8.7)
Net borrowings and repayments of debt244.4  (0.5) 
Net cash provided by (used in) financing activities$193.7  $(21.8) 
Borrowings on lines of creditBorrowings on lines of credit250.0 — 
Repayments on lines of creditRepayments on lines of credit(250.0)— 
OtherOther(2.1)(3.5)
Net cash used in financing activitiesNet cash used in financing activities$(76.6)$(64.1)
We paid dividendsdividends of $0.07, $0.10 and $0.145 $0.10 per common share in Q1 2021, Q2 2021 and Q3 2021, respectively, and $0.145 per common share in each of Q1 2020, respectively.Q2 2020 and Q3 2020.
During year-to-date 2021, we borrowed and subsequently repaid $250.0 on our global credit facility.
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In Q1year-to-date 2021, we repurchased 3,244,3893,288,795 shares of Class A common stock, 244,389288,795 of which were made to satisfy participants' tax withholding obligations upon the issuance of shares under equity awards, pursuant to the terms of our Incentive Compensation Plan. In Q1year-to-date 2020, we repurchased 229,303524,379 shares of Class A common stock, all279,379 of which were made to satisfy participants' tax withholding obligations upon the issuance of shares under equity awards, pursuant to the terms of our Incentive Compensation Plan.
As of May 29,November 27, 2020, wewe had $56.4 of remaining availability under the $150 share repurchase program approved by our Board of Directors in 2016.

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Off-Balance Sheet Arrangements
During Q1Q3 2021, no material change in our off-balance sheet arrangements occurred.
Contractual Obligations
During Q1year-to-date 2021, we borrowed and subsequently repaid $250.0 underon our global credit facility and repaid $5.0.facility. See Liquidity Facilities for more information.
Liquidity Facilities
Our total liquidity facilities as of May 29,November 27, 2020 were:
Liquidity FacilitiesMay 29,November 27,
2020
Global committed bank facility$250.0 
Various uncommitted lines20.420.1 
Total credit lines available270.4270.1 
Less: Borrowings outstanding and otherOther guarantees(247.1)(2.2)
Available capacity$23.3267.9 
We have a $250.0 global committed five-year bank facility in effect through 2025. As of May 29,November 27, 2020, there were $245.0no borrowings outstanding under the facility fawith an effective interest rate of cility and1.07% and $2.1 $2.2 of guarantees reducing our availability.The facility requires us to satisfy two financial covenants: (1) a maximum leverage ratio covenant, which is measured by the ratio of indebtedness less liquidity to trailing four quarter adjusted EBITDA (as defined in the credit agreement) and is required to be less than 3:5:1, and (2) a minimum interest coverage ratio covenant, which is measured by the ratio of trailing four quarter adjusted EBITDA (as defined in the credit agreement) to trailing four quarter interest expense and is required to be no less than 3:0:1. As of May 29,November 27, 2020, we were in compliance with all covenants under the facility.
Our various uncommitted lines may be changed or canceled by the banks at any time. There were no borrowings outstanding under the uncommitted facilities as of May 29,November 27, 2020.
In addition, we have credit agreements totaling $35.3$37.3 which can be utilized to support letters of credit, bank guarantees or foreign exchange contracts. Letters of credit and bank guarantees of $15.2$12.4 were outstanding under these facilities as of May 29,November 27, 2020. There were no draws on our letters of credit during Q1year-to-date 2021 or Q1year-to-date 2020.
Total consolidated debt as of May 29,November 27, 2020 was $728.9.$482.8. Our debt primarily consists of $443.5$443.8 in term notes due in 2029 with an effective interest rate of 5.6% and the borrowings under our global credit facility as described above.. In addition, we have a term loan with a balance as of May 29,November 27, 2020 of $39.4.$38.1. This term loan has a floating interest rate based on 30-day LIBOR plus 1.20% and is due in 2024. The term notes are unsecured, and the term loan is secured by our 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
At May 29,November 27, 2020, our total liquidity position, comprised of cash, cash equivalents and the cash surrender value of COLI, aggregated to $799.0.$652.1. Our current cash and cash equivalents,liquidity position, funds available under our credit facilities funds available from COLI and cash generated from operations are expected to be sufficient to finance our known or foreseeable liquidity needs, but our ability to foresee future cash needs is limited in light of current global economic conditions.needs.
Our significant funding requirements include operating expenses, non-cancelable operating lease obligations, capital expenditures, variable compensation and retirement plan contributions, dividend payments and debt service obligations. We have flexibility over some of these uses of cash, including capital expenditures and discretionary operating expenses, to preserve our liquidity position, and we expect our capital expenditures in 2021 will not exceed $50.0$50 compared to $73.4 in 2020.

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During Q1 2021, in response to the COVID-19 pandemic and therelated economic uncertainty, we took a number of actions taken by various governments and third parties to combat the spread of COVID-19 (including, in some cases, mandatory quarantines and other suspensions of non-essential business operations) led to significant disruptions inprotect our manufacturing and distribution operations and supply chains,liquidity, including temporary reductions or suspensions of operations at manyborrowing under our global credit facility, temporarily reducing pay for most of our manufacturing and distribution locations around the world. In addition, many of our customers were unable to receive products from us or our dealers and delayed deliveries of existing orders. In March, in order to reduce our cash outflows, we significantly reduced salaries, eliminatedsalaried workforce, eliminating travel and events, overtime, temporary labor and annual merit increases, and scaledscaling back project spending. We also borrowed $250.0 againstDuring Q2 2021, as we were able to resume our manufacturing activities globally and our revenue improved, we repaid all outstanding borrowings under our global credit facility, to provide additional liquidity in light of the uncertainty related to COVID-19. In May,and by Q3 2021, we eased some of the salary reductions as allrestored most of our manufacturingglobal salaried workforce to full pay. In Q2 and distribution locations around the world were open; however,Q3 2021, we intendimplemented workforce reductions in our Americas segment, and we expect to maintain the majority of our spending reductions while incoming order trends remain significantly impacted byother cost reduction efforts during the pandemic.remainder of 2021.
On June 30,December 17, 2020, we announced a quarterly dividend on our common stock of $0.10 per share, or approximately $11.0,$12, to be paid in Q2Q4 2021. Future dividends will be subject to approval by our Board of Directors.
Critical Accounting Estimates
During Q1Q3 2021, 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,” 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; 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 material, commodity and 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:
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 May 29,November 27, 2020 is the same as disclosed in our Annual Report on Form 10-K for the year ended February 28, 2020. 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 Q1Q3 2021, no material change in foreign exchange risk occurred.
Interest Rate Risk
During Q1Q3 2021, no material change in interest rate risk occurred.

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Commodity Price Risk
During Q1Q3 2021, no material change in commodity price risk occurred.
Fixed Income and Equity Price Risk
During Q1Q3 2021, no material change in fixed income and equity price risk occurred.
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")), as of May 29,November 27, 2020. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of May 29,November 27, 2020, 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) and 15d-15(f) under the Exchange Act) during our firstthird 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 Form 10-K for the fiscal year ended February 28, 2020.  There hashave not been aany material changechanges to the risk factors set forth in our Form 10-K for the fiscal year ended February 28, 2020.2020, except for the following risk factors which supplement and update the risk factors previously disclosed and should be considered in conjunction with the Risk Factors section in our Form 10-K for the fiscal year ended February 28, 2020:
The COVID-19 pandemic has had, and is expected to continue to have, a significant and adverse effect on our business.
The COVID-19 pandemic and the actions taken by various governments and third parties to combat the spread of COVID-19 (including, in some cases, mandatory quarantines and other suspensions of non-essential business operations) caused significant disruptions in our manufacturing and distribution operations and supply chains during Q1 2021 and required many office workers globally to work from home on a temporary basis, which has had a negative impact on global demand for our industry. In response to these developments, we took a number of actions to reduce our spending, including temporary and permanent layoffs, temporary pay reductions and reduced spending on product development and strategic initiatives. These actions have had and may continue to have a negative impact on our employee retention and our growth strategies in the future.
The economic impacts of the COVID-19 pandemic have had a negative impact on many of our customers, particularly those in the retail, hospitality, automotive, aviation, energy and flexible real estate sectors, and thus has negatively affected our revenues and may increase credit risk for us and our dealers. In addition, the actions being taken by governments and third parties to prevent the spread of COVID-19 have resulted in increased working from home for an extended period of time, which has been impacting and may continue to impact overall demand for office furniture and our revenue.
The severity of these various impacts on our business will depend in part on the extent and duration of government quarantine or stay-at-home orders, the timing of when companies have their employees return to the office, the availability of government benefits and other stimulus efforts to mitigate the effects of the COVID-19 pandemic and the speed of the recovery of economic conditions globally and locally, all of which are highly uncertain and out of our control. The impacts of COVID-19 are far-reaching, and the duration and intensity of the impact on our business, our industry and the global economy are not yet fully known.
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We rely on the integrity and security of our information technology systems, and our business could be materially adversely impacted by extended disruptions, significant security breaches or other compromises of these systems.
We rely on information technology systems to operate and manage our business and to process, maintain and safeguard information essential to our business as well as information relating to our customers, dealers, suppliers and employees. These systems are vulnerable to events beyond our reasonable control, including cyberattacks and security breaches, telecommunication and internet failures, natural disasters and power loss. Such events could result in operational slowdowns, shutdowns or other difficulties; loss of revenues or market share; compromise or loss of sensitive or proprietary information; destruction or corruption of data; costs of remediation, repair or recovery; breaches of obligations to third parties under privacy laws or contracts; or damage to our reputation or customer relationships; each of which, depending on the extent or duration of the event, could materially adversely impact our business, operating results or financial condition.
In October 2020, we detected a cyberattack that resulted in unauthorized access to our information technology systems. To protect our systems during that cyberattack, we temporarily shut down our global operations, which resulted in a delay of approximately $60 in revenue from Q3 2021 to Q4 2021; however, we do not believe this incident had or will have a materially adverse impact on our business, operating results or financial condition or the effectiveness of our internal controls.
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 Q1Q3 2021:
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)
2/29/2020 - 4/3/20203,242,478  $13.00  3,000,000  $56.4  
4/4/2020 - 5/1/20201,911  $9.11  —  $56.4  
5/2/2020 - 5/29/2020—  $—  —  $56.4  
Total3,244,389  (2)3,000,000   
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)
8/29/2020 - 10/2/20203,241 $12.34 — $56.4 
10/3/2020 - 10/30/202038,275 $10.70 — $56.4 
10/31/2020 - 11/27/20202,685 $10.44 — $56.4 
Total44,201 (2)—  

(1)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.
(2)244,389All of these 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.
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Item 6.Exhibits:
Exhibit
No.		Description
10.1*
10.2*
10.3*
31.1
31.2
32.1
101.INSInline 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.SCHInline XBRL Schema Document
101.CALInline XBRL Calculation Linkbase Document
101.LABInline XBRL Labels LInkbase Document
101.PREInline XBRL Presentation Linkbase Document
101.DEFInline XBRL Definition Linkbase Document
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Management contract or compensatory plan or arrangement.
(1) Filed as Exhibit 10.1 to the Company's Current Report on Form 8-K, as filed with the Commission on May 7, 2020 (commission file number 001-13873), and incorporated herein by reference.
(2) Filed as Exhibit 10.2 to the Company's Current Report on Form 8-K, as filed with the Commission on May 7, 2020 (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/  David C. SylvesterRobin L. Zondervan
David C. SylvesterRobin L. Zondervan
Senior Vice President,Corporate Controller and Chief FinancialAccounting Officer
(Duly Authorized Officer Principal Financial Officer and
Principal Accounting Officer)
Date: July 1,December 22, 2020
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