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 November ~~25, 2022~~24, 2023


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)


Michigan		38-0819050
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
901 44th Street SE
Grand Rapids,	Michigan	49508
(Address of principal executive offices)		(Zip Code)

(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 class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock	SCS	New 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 December ~~19, 2022,~~15, 2023, Steelcase Inc. had ~~92,531,450~~93,867,310 shares of Class A Common Stock and ~~20,454,413~~20,354,413 shares of Class B Common Stock outstanding.

Table of Contents


STEELCASE INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED November ~~25, 2022~~24, 2023 INDEX


		Page No.

PART I	Financial Information	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of Income for the Three and Nine Months Ended November ~~25, 2022~~24 , 2023 and November ~~26, 2021~~25 , 2022	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended November 24 , 2023 and November 25 , 2022 ~~and November 26, 2021~~	2
	Condensed Consolidated Balance Sheets as of November ~~25, 2022~~24 , 2023 and February ~~25, 2022~~24, 2023	3
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended November ~~25,~~24 , 2023 and November 2 5 , 2022 ~~and November 26, 2021~~	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended No vembe r 24 , 2023 and November 25 , 2022 ~~and November 26, 2021~~	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2019
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3129
Item 4.	Controls and Procedures	3230

PART II	Other Information	3330
Item 1A.	Risk Factors	3330
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3330
Item 6.	Exhibits	3431
Signatures		3532

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements:

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in millions, except per share data)


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Revenue	Revenue	$	826.9	$	738.2	$	2,430.9	$	2,019.6	Revenue	$	777.9	$	826.9	$	2,384.4	$	2,430.9
Cost of sales	Cost of sales	587.7		534.6		1,748.4		1,454.5		Cost of sales	525.5		587.7		1,611.2		1,748.4
Restructuring costs	Restructuring costs	1.4		—		2.3		—		Restructuring costs	0.1		1.4		2.9		2.3
Gross profit	Gross profit	237.8		203.6		680.2		565.1		Gross profit	252.3		237.8		770.3		680.2
Operating expenses	Operating expenses	208.1		187.7		630.4		547.1		Operating expenses	206.5		208.1		663.0		630.4
Restructuring costs	Restructuring costs	9.2		—		13.0		—		Restructuring costs	2.0		9.2		15.2		13.0
Operating income	Operating income	20.5		15.9		36.8		18.0		Operating income	43.8		20.5		92.1		36.8
Interest expense	Interest expense	(7.6)		(6.5)		(21.2)		(19.3)		Interest expense	(6.4)		(7.6)		(19.6)		(21.2)
Investment income	Investment income	0.3		0.1		0.7		0.4		Investment income	2.3		0.3		3.6		0.7
Other income, net	Other income, net	3.4		2.5		10.9		3.5		Other income, net	0.9		3.4		4.4		10.9
Income before income tax expense (benefit)		16.6		12.0		27.2		2.6
Income tax expense (benefit)		5.2		2.4		7.6		(3.6)
Income before income tax expense										Income before income tax expense	40.6		16.6		80.5		27.2
Income tax expense										Income tax expense	9.8		5.2		20.7		7.6
Net income	Net income	$	11.4	$	9.6	$	19.6	$	6.2	Net income	$	30.8	$	11.4	$	59.8	$	19.6
Earnings per share:	Earnings per share:									Earnings per share:
Basic	Basic	$	0.10	$	0.08	$	0.17	$	0.05	Basic	$	0.26	$	0.10	$	0.50	$	0.17
Diluted	Diluted	$	0.10	$	0.08	$	0.17	$	0.05	Diluted	$	0.26	$	0.10	$	0.50	$	0.17
Dividends declared and paid per common share	Dividends declared and paid per common share	$	0.100	$	0.145	$	0.390	$	0.390	Dividends declared and paid per common share	$	0.100	$	0.100	$	0.300	$	0.390

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(in millions)


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Net income	Net income	$	11.4	$	9.6	$	19.6	$	6.2	Net income	$	30.8	$	11.4	$	59.8	$	19.6
Other comprehensive income (loss), net:	Other comprehensive income (loss), net:									Other comprehensive income (loss), net:
Unrealized gain (loss) on investment	Unrealized gain (loss) on investment	(0.1)		(0.1)		(0.1)		0.1		Unrealized gain (loss) on investment	0.4		(0.1)		0.4		(0.1)
Pension and other post-retirement liability adjustments	Pension and other post-retirement liability adjustments	(0.4)		0.4		(0.2)		0.7		Pension and other post-retirement liability adjustments	(0.2)		(0.4)		(1.5)		(0.2)
Derivative amortization	Derivative amortization	0.2		0.3		0.7		0.7		Derivative amortization	0.2		0.2		0.7		0.7
Foreign currency translation adjustments	Foreign currency translation adjustments	8.8		(13.3)		(31.1)		(25.1)		Foreign currency translation adjustments	0.7		8.8		8.1		(31.1)
Total other comprehensive income (loss), net	Total other comprehensive income (loss), net	8.5		(12.7)		(30.7)		(23.6)		Total other comprehensive income (loss), net	1.1		8.5		7.7		(30.7)
Comprehensive income (loss)	Comprehensive income (loss)	$	19.9	$	(3.1)	$	(11.1)	$	(17.4)	Comprehensive income (loss)	$	31.9	$	19.9	$	67.5	$	(11.1)

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

STEELCASE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)


		(Unaudited)					(Unaudited)
		November 25, 2022		February 25, 2022			November 24, 2023		February 24, 2023
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	55.0	$	200.9	Cash and cash equivalents	$	262.0	$	90.4

Accounts receivable, net of allowance of $6.5 and $8.0		400.1		340.4
Accounts receivable, net of allowance of $6.3 and $6.5						Accounts receivable, net of allowance of $6.3 and $6.5	354.5		373.3
Inventories	Inventories	378.5		326.2		Inventories	259.8		319.7

Prepaid expenses	Prepaid expenses	28.6		24.0		Prepaid expenses	31.0		28.9
Income taxes receivable		16.3		41.7
Assets held for sale						Assets held for sale	19.3		29.0

Other current assets	Other current assets	36.0		26.0		Other current assets	42.2		42.7
Total current assets	Total current assets	914.5		959.2		Total current assets	968.8		884.0
Property, plant and equipment, net of accumulated depreciation of $1,110.3 and $1,089.0		404.8		392.8
Property, plant and equipment, net of accumulated depreciation of $1,116.8 and $1,088.6						Property, plant and equipment, net of accumulated depreciation of $1,116.8 and $1,088.6	362.2		376.5
Company-owned life insurance ("COLI")	Company-owned life insurance ("COLI")	161.2		168.0		Company-owned life insurance ("COLI")	162.6		157.3
Deferred income taxes	Deferred income taxes	116.4		121.2		Deferred income taxes	117.6		117.3
Goodwill	Goodwill	278.0		242.8		Goodwill	274.9		276.8
Other intangible assets, net of accumulated amortization of $101.2 and $86.4		117.2		85.5
Other intangible assets, net of accumulated amortization of $110.6 and $97.6						Other intangible assets, net of accumulated amortization of $110.6 and $97.6	98.8		111.2
Investments in unconsolidated affiliates	Investments in unconsolidated affiliates	49.4		53.1		Investments in unconsolidated affiliates	52.6		51.1
Right-of-use operating lease assets	Right-of-use operating lease assets	195.4		209.8		Right-of-use operating lease assets	171.7		198.3
Other assets	Other assets	31.5		28.6		Other assets	37.7		30.3
Total assets	Total assets	$	2,268.4	$	2,261.0	Total assets	$	2,246.9	$	2,202.8
LIABILITIES AND SHAREHOLDERS’ EQUITY	LIABILITIES AND SHAREHOLDERS’ EQUITY					LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	250.0	$	243.6	Accounts payable	$	231.6	$	203.5
Short-term borrowings and current portion of long-term debt	Short-term borrowings and current portion of long-term debt	70.4		5.1		Short-term borrowings and current portion of long-term debt	—		35.7
Current operating lease obligations	Current operating lease obligations	42.6		44.2		Current operating lease obligations	45.0		44.7
Accrued expenses:	Accrued expenses:					Accrued expenses:
Employee compensation	Employee compensation	105.0		75.6		Employee compensation	150.1		120.0
Employee benefit plan obligations	Employee benefit plan obligations	27.6		25.4		Employee benefit plan obligations	35.1		31.2
Accrued promotions	Accrued promotions	27.5		32.9		Accrued promotions	20.2		26.7
Customer deposits	Customer deposits	56.3		53.4		Customer deposits	54.0		50.8

Other	Other	99.7		87.0		Other	94.6		90.7
Total current liabilities	Total current liabilities	679.1		567.2		Total current liabilities	630.6		603.3
Long-term liabilities:	Long-term liabilities:					Long-term liabilities:
Long-term debt less current maturities	Long-term debt less current maturities	445.6		477.4		Long-term debt less current maturities	446.1		445.5
Employee benefit plan obligations	Employee benefit plan obligations	111.6		126.7		Employee benefit plan obligations	100.4		103.0
Long-term operating lease obligations	Long-term operating lease obligations	168.7		182.2		Long-term operating lease obligations	142.1		169.9
Other long-term liabilities	Other long-term liabilities	53.8		55.3		Other long-term liabilities	51.8		54.9
Total long-term liabilities	Total long-term liabilities	779.7		841.6		Total long-term liabilities	740.4		773.3
Total liabilities	Total liabilities	1,458.8		1,408.8		Total liabilities	1,371.0		1,376.6
Shareholders’ equity:	Shareholders’ equity:					Shareholders’ equity:

Additional paid-in capital	Additional paid-in capital	15.6		1.5		Additional paid-in capital	37.3		19.4
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)	(81.3)		(50.6)		Accumulated other comprehensive income (loss)	(64.8)		(72.5)
Retained earnings	Retained earnings	875.3		901.3		Retained earnings	903.4		879.3
Total shareholders’ equity	Total shareholders’ equity	809.6		852.2		Total shareholders’ equity	875.9		826.2
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity	$	2,268.4	$	2,261.0	Total liabilities and shareholders’ equity	$	2,246.9	$	2,202.8

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in millions, except share and per share data)


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Changes in common shares outstanding:	Changes in common shares outstanding:									Changes in common shares outstanding:
Common shares outstanding, beginning of period	Common shares outstanding, beginning of period	112,762,002		113,821,358		112,109,294		114,908,676		Common shares outstanding, beginning of period	114,003,058		112,762,002		112,988,721		112,109,294
Common stock issuances	Common stock issuances	26,047		16,109		68,428		43,406		Common stock issuances	32,943		26,047		108,724		68,428
Common stock repurchases	Common stock repurchases	(64,184)		(1,764,083)		(343,485)		(3,991,083)		Common stock repurchases	(82,717)		(64,184)		(512,707)		(343,485)
Performance and restricted stock units issued as common stock	Performance and restricted stock units issued as common stock	212,936		104,825		1,102,564		1,217,210		Performance and restricted stock units issued as common stock	246,150		212,936		1,614,696		1,102,564
Common shares outstanding, end of period	Common shares outstanding, end of period	112,936,801		112,178,209		112,936,801		112,178,209		Common shares outstanding, end of period	114,199,434		112,936,801		114,199,434		112,936,801

Changes in additional paid-in capital (1):	Changes in additional paid-in capital (1):									Changes in additional paid-in capital (1):
Additional paid-in capital, beginning of period	Additional paid-in capital, beginning of period	$	13.7	$	—	$	1.5	$	12.5	Additional paid-in capital, beginning of period	$	34.6	$	13.7	$	19.4	$	1.5
Common stock issuances	Common stock issuances	0.3		0.2		0.8		0.6		Common stock issuances	0.2		0.3		0.8		0.8
Common stock repurchases	Common stock repurchases	(0.5)		—		(3.9)		(27.7)		Common stock repurchases	(0.9)		(0.5)		(4.2)		(3.9)
Performance and restricted stock units expense (credit)		2.1		(0.2)		17.2		14.6
Performance and restricted stock units expense										Performance and restricted stock units expense	3.4		2.1		21.3		17.2
Additional paid-in capital, end of period	Additional paid-in capital, end of period	15.6		—		15.6		—		Additional paid-in capital, end of period	37.3		15.6		37.3		15.6

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 period	Accumulated other comprehensive income (loss), beginning of period	(89.8)		(50.9)		(50.6)		(40.0)		Accumulated other comprehensive income (loss), beginning of period	(65.9)		(89.8)		(72.5)		(50.6)
Other comprehensive income (loss)	Other comprehensive income (loss)	8.5		(12.7)		(30.7)		(23.6)		Other comprehensive income (loss)	1.1		8.5		7.7		(30.7)

Accumulated other comprehensive income (loss), end of period	Accumulated other comprehensive income (loss), end of period	(81.3)		(63.6)		(81.3)		(63.6)		Accumulated other comprehensive income (loss), end of period	(64.8)		(81.3)		(64.8)		(81.3)

Changes in retained earnings:	Changes in retained earnings:									Changes in retained earnings:
Retained earnings, beginning of period	Retained earnings, beginning of period	875.5		952.2		901.3		988.0		Retained earnings, beginning of period	884.4		875.5		879.3		901.3
Net income	Net income	11.4		9.6		19.6		6.2		Net income	30.8		11.4		59.8		19.6
Dividends paid	Dividends paid	(11.6)		(16.7)		(45.6)		(45.9)		Dividends paid	(11.8)		(11.6)		(35.7)		(45.6)
Common stock repurchases		—		(23.1)		—		(26.3)
Performance and restricted stock units expense (credit)		—		(1.8)		—		(1.8)

Retained earnings, end of period	Retained earnings, end of period	875.3		920.2		875.3		920.2		Retained earnings, end of period	903.4		875.3		903.4		875.3
Total shareholders' equity	Total shareholders' equity	$	809.6	$	856.6	$	809.6	$	856.6	Total shareholders' equity	$	875.9	$	809.6	$	875.9	$	809.6

(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.

Table of Contents

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)


		Nine Months Ended					Nine Months Ended
		November 25, 2022		November 26, 2021			November 24, 2023		November 25, 2022
OPERATING ACTIVITIES	OPERATING ACTIVITIES					OPERATING ACTIVITIES
Net income	Net income	$	19.6	$	6.2	Net income	$	59.8	$	19.6
Depreciation and amortization	Depreciation and amortization	67.2		62.2		Depreciation and amortization	62.8		67.2
Share-based compensation	Share-based compensation	18.0		13.4		Share-based compensation	22.1		18.0
Restructuring costs	Restructuring costs	15.3		—		Restructuring costs	18.1		15.3

Change in fair value of contingent consideration						Change in fair value of contingent consideration	(9.5)		—
Other	Other	(4.3)		(28.8)		Other	(12.4)		(4.3)
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Accounts receivable	Accounts receivable	(68.1)		(68.6)		Accounts receivable	5.8		(68.1)
Inventories	Inventories	(48.2)		(93.4)		Inventories	59.8		(48.2)
Income taxes receivable	Income taxes receivable	25.4		(1.6)		Income taxes receivable	(4.6)		25.4
Other assets	Other assets	(15.7)		(16.7)		Other assets	0.3		(15.7)
Accounts payable	Accounts payable	7.8		77.5		Accounts payable	30.2		7.8
Employee compensation liabilities	Employee compensation liabilities	17.0		(15.3)		Employee compensation liabilities	17.3		17.0
Employee benefit obligations	Employee benefit obligations	(14.0)		(13.5)		Employee benefit obligations	(1.7)		(14.0)
Customer deposits	Customer deposits	(19.8)		21.3		Customer deposits	5.1		(19.8)
Accrued expenses and other liabilities	Accrued expenses and other liabilities	1.2		(1.8)		Accrued expenses and other liabilities	(1.8)		1.2
Net cash provided by (used in) operating activities		1.4		(59.1)
Net cash provided by operating activities						Net cash provided by operating activities	251.3		1.4
INVESTING ACTIVITIES	INVESTING ACTIVITIES					INVESTING ACTIVITIES
Capital expenditures	Capital expenditures	(42.8)		(45.3)		Capital expenditures	(37.4)		(42.8)
Proceeds from disposal of fixed assets	Proceeds from disposal of fixed assets	5.6		17.4		Proceeds from disposal of fixed assets	28.2		5.6
Acquisitions, net of cash acquired		(105.3)		(32.6)
Acquisition, net of cash acquired						Acquisition, net of cash acquired	—		(105.3)
Other	Other	15.0		9.2		Other	4.0		15.0
Net cash used in investing activities	Net cash used in investing activities	(127.5)		(51.3)		Net cash used in investing activities	(5.2)		(127.5)
FINANCING ACTIVITIES	FINANCING ACTIVITIES					FINANCING ACTIVITIES
Dividends paid	Dividends paid	(45.6)		(45.9)		Dividends paid	(35.7)		(45.6)
Common stock repurchases		(3.9)		(54.0)

Borrowings on global committed bank facility	Borrowings on global committed bank facility	480.9		—		Borrowings on global committed bank facility	69.0		480.9
Repayments on global committed bank facility	Repayments on global committed bank facility	(446.9)		—		Repayments on global committed bank facility	(69.0)		(446.9)
Repayments on note payable						Repayments on note payable	(32.2)		(2.1)
Other	Other	(1.1)		(1.6)		Other	(6.1)		(2.9)
Net cash used in financing activities	Net cash used in financing activities	(16.6)		(101.5)		Net cash used in financing activities	(74.0)		(16.6)
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	(2.6)		(1.6)		Effect of exchange rate changes on cash and cash equivalents	(0.2)		(2.6)
Net decrease in cash, cash equivalents and restricted cash		(145.3)		(213.5)
Net increase (decrease) in cash, cash equivalents and restricted cash						Net increase (decrease) in cash, cash equivalents and restricted cash	171.9		(145.3)
Cash and cash equivalents and restricted cash, beginning of period (1)	Cash and cash equivalents and restricted cash, beginning of period (1)	207.0		495.6		Cash and cash equivalents and restricted cash, beginning of period (1)	97.2		207.0
Cash and cash equivalents and restricted cash, end of period (2)	Cash and cash equivalents and restricted cash, end of period (2)	$	61.7	$	282.1	Cash and cash equivalents and restricted cash, end of period (2)	$	269.1	$	61.7

(1)These amounts include restricted cash of ~~$6.1~~$6.8 and ~~$5.8~~$6.1 as of February ~~25, 2022~~24, 2023 and February ~~26, 2021,~~25, 2022, respectively.

(2)These amounts include restricted cash of ~~$6.7~~$7.1 and ~~$6.9~~$6.7 as of November ~~25, 2022~~24, 2023 and November ~~26, 2021,~~25, 2022, respectively.

Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability ~~claims~~. ~~Restricted~~claims. The restricted cash balance is included as part of Other assets on 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 ~~25, 2022~~24, 2023 (“Form 10-K”). The Condensed Consolidated Balance Sheet as of February ~~25, 2022~~24, 2023 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

We evaluate all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB") for consideration of their applicability to our consolidated financial statements. We have assessed all ASUs issued but not yet adopted and concluded that those not disclosed are either not applicable to us or are not expected to have a material effect on our consolidated financial statements.

Adoption of New Accounting Standards ~~Issued But Not Yet Adopted~~

~~In September 2022, the FASB issued~~Effective Q1 2024, we adopted ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50), which is intended to enhance transparency of supplier finance programs by requiring disclosure of key terms, amounts outstanding (including a rollforward of outstanding amounts) and a description of where such amounts are presented in the consolidated financial statements.

We participate in a supplier finance program in Spain offered by a third-party financial institution. The ~~guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022.~~program allows participating suppliers the ability to finance our payment obligations prior to their scheduled due dates at a discounted price set by the financial institution. We ~~expect~~have extended payment terms with suppliers that have voluntarily chosen to participate in the ~~adoption~~program. As of ~~this guidance will modify our disclosures but we do not expect it to have a material effect~~ November 24, 2023, the outstanding amount of program obligations, reported in Accounts payable on ~~our consolidated financial statements.~~the Condensed Consolidated Balance Sheets, was $0.7. The amount settled through the program during the nine months ended November 24, 2023 was $6.5.

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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 Data	Product Category Data	Three Months Ended				Nine Months Ended				Product Category Data	Three Months Ended				Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Americas	Americas									Americas
Desking, benching, systems and storage	Desking, benching, systems and storage	$	263.7	$	240.1	$	827.4	$	669.5	Desking, benching, systems and storage	$	262.6	$	263.7	$	799.5	$	827.4
Seating	Seating	174.1		143.0		533.6		426.7		Seating	152.5		174.1		492.5		533.6
Other (1)	Other (1)	156.9		117.2		406.1		303.7		Other (1)	171.0		182.0		546.2		479.6
EMEA
Desking, benching, systems and storage		55.6		62.2		160.7		158.7
Seating		54.8		61.1		153.8		150.7
Other (1)		47.3		44.9		137.4		121.3
Other
International										International
Desking, benching, systems and storage	Desking, benching, systems and storage	13.8		13.8		39.6		39.1		Desking, benching, systems and storage	70.0		69.4		194.2		200.3
Seating	Seating	21.5		21.3		61.2		52.0		Seating	67.3		76.3		190.7		215.0
Other (1)	Other (1)	39.2		34.6		111.1		97.9		Other (1)	54.5		61.4		161.3		175.0
		$	826.9	$	738.2	$	2,430.9	$	2,019.6		$	777.9	$	826.9	$	2,384.4	$	2,430.9

_______________________________________

(1)The other product category data by segment consists primarily of products sold by consolidated dealers, textiles and surface materials, worktools, architecture and other uncategorized product lines and services, less promotions and incentives on all product categories.

Reportable geographic information is as follows:


Reportable Geographic Revenue	Reportable Geographic Revenue	Three Months Ended				Nine Months Ended				Reportable Geographic Revenue	Three Months Ended							Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			Reportable Geographic Revenue	November 24, 2023			November 25, 2022					November 24, 2023				November 25, 2022
United States	United States	$	576.0	$	474.6	$	1,712.3	$	1,327.4				United States	$	541.5				$	576.0			$	1,715.5			$	1,712.3
Foreign locations	Foreign locations	250.9		263.6		718.6		692.2						Foreign locations		236.4					250.9				668.9				718.6
		$	826.9	$	738.2	$	2,430.9	$	2,019.6							$	777.9				$	826.9			$	2,384.4			$	2,430.9

Contract Balances

At times, we receive payments from customers before revenue is recognized, resulting in the recognition of a contract liability (Customer deposits) presented on the Condensed Consolidated Balance Sheets.

Changes in the Customer deposits balance for the nine months ended November ~~25, 2022~~24, 2023 are as follows:


	Customer Deposits
Balance as of February ~~25, 2022~~24, 2023	$	~~53.4~~50.8
Recognition of revenue related to beginning of year customer deposits	~~(48.4)~~(46.5)
Customer deposits received, net of revenue recognized during the period	~~27.0~~51.7
~~Customer deposits acquired~~Other (1)	~~24.3~~ (2.0)
Balance as of November ~~25, 2022~~24, 2023	$	~~56.3~~54.0

(1)Represents customer deposits ~~acquired from Halcon Furniture LLC ("Halcon") as~~transferred in the divestiture of ~~the acquisition date. See Note 11 for additional information.~~a consolidated dealer.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

4.EARNINGS PER SHARE

Earnings per share is computed using the two-class method. The two-class method determines earnings 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 per share includes the effects of certain performance units in which the participants have forfeitable rights to dividend equivalents during the performance period.


Computation of Earnings Per Share	Computation of Earnings Per Share	Three Months Ended November 25, 2022						Three Months Ended November 26, 2021						Computation of Earnings Per Share	Three Months Ended November 24, 2023						Three Months Ended November 25, 2022
		Net Income		Basic Shares (in millions)		Diluted Shares (in millions)		Net Income		Basic Shares (in millions)		Diluted Shares (in millions)			Net Income		Basic Shares (in millions)		Diluted Shares (in millions)		Net Income		Basic Shares (in millions)		Diluted Shares (in millions)
Amounts used in calculating earnings per share	Amounts used in calculating earnings per share	$	11.4	117.2		117.6		$	9.6	116.0		116.3		Amounts used in calculating earnings per share	$	30.8	118.9		119.4		$	11.4	117.2		117.6
Impact of participating securities	Impact of participating securities	(0.4)		(4.4)		(4.4)		(0.3)		(3.2)		(3.2)		Impact of participating securities	(1.2)		(4.7)		(4.7)		(0.4)		(4.4)		(4.4)
Amounts used in calculating earnings per share, excluding participating securities	Amounts used in calculating earnings per share, excluding participating securities	$	11.0	112.8		113.2		$	9.3	112.8		113.1		Amounts used in calculating earnings per share, excluding participating securities	$	29.6	114.2		114.7		$	11.0	112.8		113.2

Earnings per share	Earnings per share			$	0.10	$	0.10			$	0.08	$	0.08	Earnings per share			$	0.26	$	0.26			$	0.10	$	0.10


Computation of Earnings Per Share	Nine Months Ended November 24, 2023						Nine Months Ended November 25, 2022
	Net Income		Basic Shares (in millions)		Diluted Shares (in millions)		Net Income		Basic Shares (in millions)		Diluted Shares (in millions)
Amounts used in calculating earnings per share	$	59.8	118.5		119.0		$	19.6	117.1		117.4
Impact of participating securities	(2.3)		(4.5)		(4.5)		(0.7)		(4.3)		(4.3)
Amounts used in calculating earnings per share, excluding participating securities	$	57.5	114.0		114.5		$	18.9	112.8		113.1

Earnings per share			$	0.50	$	0.50			$	0.17	$	0.17

There were no anti-dilutive performance units excluded from the computation of diluted earnings per share for the three ~~months ended November 25, 2022~~ and ~~November 26, 2021.~~

Computation of
Earnings Per Share Nine Months Ended November 25, 2022 Nine Months Ended November 26, 2021
Net Income Basic Shares
(in millions) Diluted Shares
(in millions) Net Income Basic Shares
(in millions) Diluted Shares
(in millions)
Amounts used in calculating earnings per share $ 19.6 117.1 117.4 $ 6.2 117.4 117.8
Impact of participating securities (0.7) (4.3) (4.3) (0.2) (3.0) (3.0)
Amounts used in calculating earnings per share, excluding participating securities $ 18.9 112.8 113.1 $ 6.0 114.4 114.8
Earnings per share $ 0.17 $ 0.17 $ 0.05 $ 0.05

~~There were no anti-dilutive performance units excluded from the computation of diluted earnings per share for the~~ nine months ended November ~~25, 2022~~24, 2023 and November ~~26, 2021.~~25, 2022.

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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 November ~~25, 2022:~~24, 2023:


		Unrealized gain (loss) on investment		Pension and other post-retirement liability adjustments		Derivative amortization		Foreign currency translation adjustments		Total			Unrealized gain (loss) on investment		Pension and other post-retirement liability adjustments		Derivative amortization		Foreign currency translation adjustments		Total
Balance as of August 26, 2022		$	0.3	$	5.4	$	(6.2)	$	(89.3)	$	(89.8)
Balance as of August 25, 2023												Balance as of August 25, 2023	$	(0.1)	$	8.0	$	(5.2)	$	(68.6)	$	(65.9)
Other comprehensive income (loss) before reclassifications	Other comprehensive income (loss) before reclassifications	(0.1)		(0.1)		—		8.8		8.6		Other comprehensive income (loss) before reclassifications	0.4		0.2		—		0.7		1.3
Amounts reclassified from accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)	—		(0.3)		0.2		—		(0.1)		Amounts reclassified from accumulated other comprehensive income (loss)	—		(0.4)		0.2		—		(0.2)
Net other comprehensive income (loss) during the period	Net other comprehensive income (loss) during the period	(0.1)		(0.4)		0.2		8.8		8.5		Net other comprehensive income (loss) during the period	0.4		(0.2)		0.2		0.7		1.1
Balance as of November 25, 2022		$	0.2	$	5.0	$	(6.0)	$	(80.5)	$	(81.3)
Balance as of November 24, 2023												Balance as of November 24, 2023	$	0.3	$	7.8	$	(5.0)	$	(67.9)	$	(64.8)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended November ~~25, 2022:~~24, 2023:


		Unrealized gain (loss) on investment		Pension and other post-retirement liability adjustments		Derivative amortization		Foreign currency translation adjustments		Total			Unrealized gain (loss) on investment		Pension and other post-retirement liability adjustments		Derivative amortization		Foreign currency translation adjustments		Total
Balance as of February 25, 2022		$	0.3	$	5.2	$	(6.7)	$	(49.4)	$	(50.6)
Balance as of February 24, 2023												Balance as of February 24, 2023	$	(0.1)	$	9.3	$	(5.7)	$	(76.0)	$	(72.5)
Other comprehensive income (loss) before reclassifications	Other comprehensive income (loss) before reclassifications	(0.1)		0.7		—		(31.1)		(30.5)		Other comprehensive income (loss) before reclassifications	0.4		(0.2)		—		8.1		8.3
Amounts reclassified from accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)	—		(0.9)		0.7		—		(0.2)		Amounts reclassified from accumulated other comprehensive income (loss)	—		(1.3)		0.7		—		(0.6)
Net other comprehensive income (loss) during the period	Net other comprehensive income (loss) during the period	(0.1)		(0.2)		0.7		(31.1)		(30.7)		Net other comprehensive income (loss) during the period	0.4		(1.5)		0.7		8.1		7.7
Balance as of November 25, 2022		$	0.2	$	5.0	$	(6.0)	$	(80.5)	$	(81.3)
Balance as of November 24, 2023												Balance as of November 24, 2023	$	0.3	$	7.8	$	(5.0)	$	(67.9)	$	(64.8)

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~~STEELCASE INC.~~

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

The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended November ~~25, 2022~~24, 2023 and November ~~26, 2021:~~25, 2022:

Detail of Accumulated Other
Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line in the Condensed Consolidated Statements of Income
Three Months Ended Nine Months Ended
November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Amortization of pension and other post-retirement actuarial (gains) losses $ (0.4) $ (0.1) $ (1.2) $ (0.2) Other income, net
Income tax expense 0.1 0.1 0.3 0.1 Income tax expense (benefit)
(0.3) — (0.9) (0.1)
Derivative amortization 0.3 0.4 1.0 1.0 Interest expense
Income tax benefit (0.1) (0.1) (0.3) (0.3) Income tax expense (benefit)
0.2 0.3 0.7 0.7
Total reclassifications $ (0.1) $ 0.3 $ (0.2) $ 0.6


Detail of Accumulated Other Comprehensive Income (Loss) Components	Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)								Affected Line in the Condensed Consolidated Statements of Income
	Three Months Ended				Nine Months Ended
	November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022

Amortization of pension and other post-retirement actuarial gains	$	(0.5)	$	(0.4)	$	(1.7)	$	(1.2)		Other income, net

Income tax expense	0.1		0.1		0.4		0.3			Income tax expense
	(0.4)		(0.3)		(1.3)		(0.9)

Derivative amortization	0.2		0.3		0.9		1.0			Interest expense
Income tax benefit	—		(0.1)		(0.2)		(0.3)			Income tax expense
	0.2		0.2		0.7		0.7





Total reclassifications	$	(0.2)	$	(0.1)	$	(0.6)	$	(0.2)

109

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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 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 and contingent consideration are measured at fair value on the Condensed Consolidated Balance Sheets.

Our total debt is carried at cost and was ~~$516.0~~$446.1 and ~~$482.5~~$481.2 as of November ~~25, 2022~~24, 2023 and February ~~25, 2022,~~24, 2023, 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 ~~$451.9~~$405.4 and ~~$516.7~~$405.9 as of November ~~25, 2022~~24, 2023 and February ~~25, 2022,~~24, 2023, respectively. The estimation of the fair value of our total debt is based on Level 2 fair value measurements.

We ~~periodically~~may 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.

In connection with the acquisition of Viccarbe Habitat, S.L in Q3 2022, up to an additional $14.2 (or €13.0) is payable to the sellers based upon the achievement of certain revenue and operating income targets over a three-year period ending in 2025. This amount was considered to be contingent consideration and was treated for accounting purposes as part of the total purchase price of the acquisition. We used the Monte Carlo simulation model to calculate the fair value of the contingent consideration as of the acquisition date, which represents a Level 3 measurement. At each subsequent reporting date, changes in the fair value of the liability are recorded to Operating expenses until the liability is settled. In Q3 2024, we recorded a $9.5 decrease to the fair value of the contingent consideration based upon updated projections for the Viccarbe business over the earnout period.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Assets and liabilities measured at fair value within our Condensed Consolidated Balance Sheets as of November ~~25, 2022~~24, 2023 and February ~~25, 2022~~24, 2023 are summarized below:

November 25, 2022
Fair Value of Financial Instruments Level 1 Level 2 Level 3 Total
Assets:
Cash and cash equivalents $ 55.0 $ — $ — $ 55.0
Restricted cash 6.7 — — 6.7
Foreign exchange forward contracts — 2.3 — 2.3
Auction rate security — — 2.5 2.5
$ 61.7 $ 2.3 $ 2.5 $ 66.5
Liabilities:
Foreign exchange forward contracts $ — $ (0.1) $ — $ (0.1)
$ — $ (0.1) $ — $ (0.1)
February 25, 2022
Fair Value of Financial Instruments Level 1 Level 2 Level 3 Total
Assets:
Cash and cash equivalents $ 200.9 $ — $ — $ 200.9
Restricted cash 6.1 — — 6.1
Foreign exchange forward contracts — 1.0 — 1.0
Auction rate security — — 2.6 2.6
$ 207.0 $ 1.0 $ 2.6 $ 210.6
Liabilities:
Foreign exchange forward contracts $ — $ (0.3) $ — $ (0.3)
$ — $ (0.3) $ — $ (0.3)


	November 24, 2023
Fair Value of Financial Instruments	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	262.0	$	—	$	—	$	262.0
Restricted cash	7.1		—		—		7.1







Foreign exchange forward contracts	—		2.1		—		2.1
Auction rate security	—		—		2.7		2.7

	$	269.1	$	2.1	$	2.7	$	273.9
Liabilities:
Foreign exchange forward contracts	$	—	$	(0.3)	$	—	$	(0.3)
Contingent consideration	—		—		—		—
	$	—	$	(0.3)	$	—	$	(0.3)

	February 24, 2023
Fair Value of Financial Instruments	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	90.4	$	—	$	—	$	90.4
Restricted cash	6.8		—		—		6.8







Foreign exchange forward contracts	—		2.3		—		2.3
Auction rate security	—		—		2.1		2.1

	$	97.2	$	2.3	$	2.1	$	101.6
Liabilities:
Foreign exchange forward contracts	$	—	$	(0.3)	$	—	$	(0.3)
Contingent consideration	—		—		(9.5)		(9.5)
	$	—	$	(0.3)	$	(9.5)	$	(9.8)

Below is a roll-forward of assets and liabilities measured at estimated fair value using Level 3 inputs ~~for~~during the nine months ended November ~~25, 2022:~~24, 2023:

~~Roll-Forward of Fair Value Using Level 3 Inputs~~

~~Auction Rate Security~~

~~Balance as of February 25, 2022~~

~~2.6~~

~~Unrealized loss on investment~~

~~(0.1)~~

~~Balance as of November 25, 2022~~

~~2.5~~


Roll-forward of Fair Value Using Level 3 Inputs	Auction Rate Security - Other Assets		Contingent Consideration - Other Long-Term Liabilities
Balance as of February 24, 2023	$	2.1	$	9.5
Unrealized gain (loss) on investment	0.6		—
Foreign currency (gain) loss	—		—
Change in estimated fair value	—		(9.5)
Balance as of November 24, 2023	$	2.7	$	—

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

7.INVENTORIES

Inventories November 25,
2022 February 25,
2022
Raw materials and work-in-process $ 260.9 $ 208.2
Finished goods 151.1 146.9
412.0 355.1
Revaluation to LIFO 33.5 28.9
$ 378.5 $ 326.2


Inventories	November 24, 2023		February 24, 2023
Raw materials and work-in-process	$	176.6	$	232.8
Finished goods	113.5		118.1
	290.1		350.9
Revaluation to LIFO	30.3		31.2
	$	259.8	$	319.7

The portion of inventories determined by the LIFO method ~~was $153.6~~aggregated to $122.3 and ~~$141.4~~$134.1 as of November ~~25, 2022~~24, 2023 and February ~~25, 2022,~~24, 2023, respectively.

8.SHORT-TERM BORROWINGS

We have a $250.0 global committed bank facility, which 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. In ~~Q2 2023,~~Q1 2024, the credit facility was amended. As amended, interest on borrowings under the facility is based on the rate selected by us from the following options (with all capitalized terms having the meanings provided in the credit agreement, as amended):

•the Applicable Floating Rate Margin in effect plus the greatest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.5%, (iii) the Term SOFR Reference Rate for a one-month interest period plus 1.10% or (iv) 0.75%;

•the Applicable Term Benchmark/RFR Margin in effect plus (i) for borrowings in U.S. dollars, the Term SOFR Reference Rate plus 0.10%, or (ii) for borrowings in euros, the Adjusted EURIBOR Rate; or

•the Applicable Term Benchmark/RFR Margin in effect plus the Daily Simple SOFR Rate plus 0.10%.

In Q1 2024, we borrowed ~~$68.0~~and repaid $67.2 under the facility to fund our operations and the balloon payment of $31.8 for a ~~portion of our acquisition of Halcon,~~note payable that matured during the quarter. In Q2 2024, we borrowed and ~~we made net~~repaid $1.8 under the facility. In Q3 2024, there were no additional borrowings or repayments under the facility, ~~in Q3 2023. As~~and as of November ~~25, 2022, our total~~24, 2023, there were no borrowings outstanding under the ~~facility were $34.0, which had an effective interest rate of 5.37%.~~

~~The facility does not include any restrictions on cash dividend payments or share repurchases. As of November 25, 2022, we were in compliance with all covenants under the~~ facility.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

9. SHARE-BASED COMPENSATION

Performance Units

We have issued performance units (“PSUs”) to certain employees which are earned over a three-year performance period based on performance conditions established annually by the Compensation Committee within the first three months of the applicable fiscal year. The PSUs are then modified based on achievement of certain total shareholder return results relative to a comparison group of companies, which is a market condition. When the performance conditions for a fiscal year are established, or if the performance conditions involve a qualitative assessment and such assessment has been made, one-third of the PSUs issued are considered granted. Therefore, each of the three fiscal years within the performance period is considered an individual tranche of the award (referred to as "Tranche 1," "Tranche 2" and "Tranche 3," respectively).

As of November ~~25, 2022,~~24, 2023, the following PSUs have been issued and remained outstanding:

•767,600 PSUs to be earned over the period of 2024 through 2026 (the "2024 PSUs"),

•428,700 PSUs to be earned over the period of 2023 through 2025 (the "2023 PSUs"), and

•448,300 PSUs to be earned over the period of 2022 through 2024 (the "2022 ~~PSUs") and~~

•~~529,500 PSUs to be earned over the period of 2021 through 2023 (the "2021~~ PSUs").

Once granted, the PSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the remaining performance period. For participants who are or become retirement-eligible during the performance period, the PSUs are expensed over the period ending on the date the participant becomes retirement-eligible. The awards will be forfeited if a participant leaves the company for reasons other than retirement, disability or death or if the participant engages in any competition with us, as defined in the Incentive Compensation Plan.

As of November ~~25, 2022,~~24, 2023, the 2024 PSUs, 2023 PSUs ~~2022 PSUs~~ and ~~2021~~2022 PSUs were considered granted as follows:

•In Q1 2024, the performance conditions were established for Tranche 1 of the 2024 PSUs, Tranche 2 of the 2023 PSUs and Tranche 3 of the 2022 PSUs, and accordingly, such tranches were considered granted in Q1 2024.

•In Q1 2023, the performance conditions were established for Tranche 1 of the 2023 PSUs and Tranche 2 of the 2022 ~~PSUs and Tranche 3 of the 2021~~ PSUs, and accordingly, such tranches were considered granted in Q1 2023.

•In Q1 2022, the performance conditions were established for Tranche 1 of the 2022 PSUs, and ~~Tranche 2 of the 2021 PSUs, and~~ accordingly, ~~such tranches were considered granted in Q1 2022.~~

•In Q1 2021, the performance conditions were established for Tranche 1 of the 2021 PSUs. These performance conditions involved a qualitative assessment which was made by the Compensation Committee in Q4 2021. Accordingly, such tranche was considered granted in ~~Q4 2021.~~Q1 2022.

We used the Monte Carlo simulation model to calculate the fair value of the market conditions on the respective grant dates, which resulted in a total fair value of ~~$5.2, $4.8~~$4.5, $3.5 and $2.3 for the PSUs with market conditions granted in 2024, 2023 ~~2022~~ and ~~2021,~~2022, respectively, that remained outstanding as of November ~~25, 2022.~~24, 2023. The Monte Carlo simulation was computed using the following assumptions:


		FY23 Award		FY22 Award				FY21 Award							2024 PSUs		2023 PSUs				2022 PSUs
		Tranche 1		Tranche 2		Tranche 1		Tranche 3		Tranche 2		Tranche 1			Tranche 1		Tranche 2		Tranche 1		Tranche 3		Tranche 2		Tranche 1
Risk-free interest rate (1)	Risk-free interest rate (1)	2.6	%	2.3	%	0.3	%	1.6	%	0.2	%	0.2	%	Risk-free interest rate (1)	3.7	%	4.0	%	2.6	%	4.7	%	2.3	%	0.3	%
Expected term	Expected term	3 years		2 years		3 years		1 year		2 years		2 years		Expected term	3 years		2 years		3 years		1 year		2 years		3 years
Estimated volatility (2)	Estimated volatility (2)	52.2	%	43.8	%	53.5	%	28.7	%	61.3	%	58.1	%	Estimated volatility (2)	44.1	%	37.8	%	52.2	%	45.5	%	43.8	%	53.5	%

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

(2)Represents the historical price volatility of our Class A Common Stock for the ~~three-year~~ period ~~preceding~~prior to the grant ~~date.~~

date which is equivalent to the expected term of the tranche.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The total PSU expense (credit) and associated tax benefit (expense) recorded during the three and nine months ended November ~~25, 2022~~24, 2023 and November ~~26, 2021~~25, 2022 are as follows:


		Three Months Ended				Nine Months Ended				Three Months Ended						Nine Months Ended
Performance Units	Performance Units	November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			Performance Units	November 24, 2023		November 25, 2022			November 24, 2023		November 25, 2022
Expense (credit)	Expense (credit)	$	(1.3)	$	(4.1)	$	2.6	$	1.5				Expense (credit)	$	0.1		$	(1.3)	$	6.3	$	2.6
Tax benefit (expense)	Tax benefit (expense)	(0.3)		(1.0)		0.7		0.4					Tax benefit (expense)	—			(0.3)		1.5		0.7

The PSU activity for the nine months ended November ~~25, 2022~~24, 2023 is as follows:


Maximum Number of Shares of Nonvested Units	Maximum Number of Shares of Nonvested Units	Total	Weighted-Average Grant Date Fair Value per Unit		Maximum Number of Shares of Nonvested Units	Total	Weighted-Average Grant Date Fair Value per Unit
Nonvested as of February 25, 2022		1,205,833	$	14.21
Nonvested as of February 24, 2023					Nonvested as of February 24, 2023	1,060,231	$	13.11
Granted	Granted	1,125,192	11.13		Granted	1,315,664	8.30

Nonvested as of November 25, 2022		2,331,025	$	12.72
Nonvested as of November 24, 2023					Nonvested as of November 24, 2023	2,375,895	$	10.44

As of November ~~25, 2022,~~24, 2023, there was ~~$0.6~~$2.6 of remaining unrecognized compensation expense related to nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of 1.8 years.

Restricted Stock Units

During the nine months ended November ~~25, 2022,~~24, 2023, we awarded ~~1,222,849~~1,767,505 restricted stock units ("RSUs") to certain employees. RSUs have restrictions on transfer which lapse ~~one~~up to three years after the date of grant, at which time the RSUs ~~will be~~are 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 grant date. ~~Generally, RSUs awarded are not forfeitable upon a qualifying retirement.~~ For participants ~~of those awards~~ who are or become retirement-eligible during the service period for awards that are considered retirement-eligible, the RSUs are expensed over the period ending on the date that the participant becomes retirement-eligible. Typically, these awards will be forfeited if a participant leaves the company for reasons other than retirement, disability or death or if the participant engages in any competition with us, as defined in the Incentive Compensation Plan.

The total RSU expense and associated tax benefit for the ~~three and~~ nine months ended November ~~25, 2022~~24, 2023 and November ~~26, 2021~~25, 2022 are as follows:


		Three Months Ended				Nine Months Ended				Three Months Ended						Nine Months Ended
Restricted Stock Units	Restricted Stock Units	November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021			Restricted Stock Units	November 24, 2023		November 25, 2022			November 24, 2023		November 25, 2022
Expense	Expense	$	3.4	$	2.1	$	14.6	$	11.3				Expense	$	3.3		$	3.4	$	15.0	$	14.6
Tax benefit	Tax benefit	0.9		0.5		3.7		2.8					Tax benefit	0.8			0.9		3.7		3.7

The RSU activity for the nine months ended November ~~25, 2022~~24, 2023 is as follows:


Nonvested Units	Nonvested Units	Total	Weighted-Average Grant Date Fair Value per Unit		Nonvested Units	Total	Weighted-Average Grant Date Fair Value per Unit
Nonvested as of February 25, 2022		3,445,438	$	11.86
Nonvested as of February 24, 2023					Nonvested as of February 24, 2023	3,293,268	$	12.11
Granted	Granted	1,222,849	10.67		Granted	1,767,505	8.31
Vested	Vested	(223,936)	14.67		Vested	(269,934)	11.65
Forfeited	Forfeited	(72,030)	12.65		Forfeited	(65,580)	10.48
Nonvested as of November 25, 2022		4,372,321	$	11.38
Nonvested as of November 24, 2023					Nonvested as of November 24, 2023	4,725,259	$	10.74

As of November ~~25, 2022,~~24, 2023, there was ~~$16.4~~$12.3 of remaining unrecognized compensation expense related to nonvested RSUs, which is expected to be recognized over a remaining weighted-average period of ~~1.6~~1.8 years.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

10. LEASES

We have operating leases for corporate offices, sales offices, showrooms, manufacturing and distribution facilities, vehicles and equipment that expire at various dates through ~~2036.~~2035. Certain lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours operated) 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 components of lease expense ~~for~~during the three and nine months ended November ~~25, 2022~~24, 2023 and November ~~26, 2021~~25, 2022 are as follows:


		Three Months Ended				Nine Months Ended				Three Months Ended							Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021		November 24, 2023				November 25, 2022			November 24, 2023			November 25, 2022
Operating lease cost	Operating lease cost	$	13.2	$	13.2	$	38.8	$	39.5		Operating lease cost	$	13.7		$	13.2		$	40.9		$	38.8
Sublease rental income	Sublease rental income	(0.6)		(0.5)		(1.7)		(1.4)			Sublease rental income	(0.5)			(0.6)			(1.5)			(1.7)
		$	12.6	$	12.7	$	37.1	$	38.1			$	13.2		$	12.6		$	39.4		$	37.1

Supplemental cash flow and other information related to leases ~~for~~during the three and nine months ended November 24, 2023 and November 25, 2022 ~~and November 26, 2021 are~~is as follows:


		Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
		November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021		November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Cash flow information:	Cash flow information:										Cash flow information:
Operating cash flows used for operating leases	Operating cash flows used for operating leases	$	13.3	$	13.6	$	40.4	$	40.4		Operating cash flows used for operating leases	$	14.4	$	13.3	$	42.1	$	40.4
Leased assets obtained in exchange for new operating lease obligations	Leased assets obtained in exchange for new operating lease obligations	$	11.7	$	17.0	$	25.2	$	34.3		Leased assets obtained in exchange for new operating lease obligations	4.5		11.7		12.1		25.2

As of November ~~25, 2022~~24, 2023 and ~~November 26, 2021,~~February 24, 2023, the weighted-average remaining lease terms were ~~5.4~~4.9 years and ~~6.2~~5.3 years, respectively, and the weighted-average discount rates were ~~3.9%~~4.5% and ~~3.6%~~4.2%, respectively.

The following table summarizes the future minimum lease payments as of November ~~25, 2022:~~24, 2023:


Fiscal year ending in February	Fiscal year ending in February	Amount (1)		Fiscal year ending in February	Amount (1)
2023		$	11.6
2024	2024	51.1		2024	$	12.0
2025	2025	48.8		2025	52.4
2026	2026	37.0		2026	42.5
2027	2027	30.1		2027	34.3
2028				2028	26.1
Thereafter	Thereafter	56.8		Thereafter	41.9
Total lease payments	Total lease payments	$	235.4	Total lease payments	209.2
Less: Interest	Less: Interest	24.1		Less: Interest	22.1
Present value of lease liabilities	Present value of lease liabilities	$	211.3	Present value of lease liabilities	$	187.1

(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.

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

11.~~ACQUISITIONS~~ACQUISITION

~~Viccarbe~~

In Q3 2022, we acquired Viccarbe Habitat, S.L. ("Viccarbe"), a Spanish designer of contemporary furniture for high-performance collaborative and social spaces. The transaction included the purchase of all the outstanding capital stock of Viccarbe for $34.9 (or €30.0) in an all-cash transaction using cash on-hand. Up to an additional $13.5 (or €13.0) is payable to the sellers based upon the achievement of certain revenue and operating income targets over a three-year period. This amount was determined to be contingent consideration and was treated for accounting purposes as part of the total purchase price of the acquisition. We used the Monte Carlo simulation model to calculate the fair value of the contingent consideration as of the acquisition date, which represents a Level 3 measurement. As a result, we recorded a related liability of $4.4 (or €4.2). An additional amount of $6.2 (or €6.0) is also payable to the sellers based upon the achievement of certain milestones and continued employment over a five-year period, which is being expensed over the service period on a straight-line basis.

Tangible assets and liabilities of Viccarbe were valued as of the acquisition date using a market analysis, and intangible assets were valued using a discounted cash flow analysis, which represents a Level 3 measurement. On the acquisition date, we recorded $11.7 related to identifiable intangible assets, $25.8 related to goodwill and $5.1 related to tangible assets. The tangible assets mainly consisted of working capital (primarily accounts receivable, inventory and accounts payable) and property, plant and equipment. Additionally, we recorded a deferred tax liability in the amount of $2.9 associated with the tax basis difference in acquired book assets. The goodwill was recorded in the EMEA segment and is not deductible for income tax purposes in Spain. The goodwill resulting from the acquisition is primarily related to the growth potential of Viccarbe and our intentions to expand the manufacturing of Viccarbe products in geographic regions outside of EMEA and to offer Viccarbe products through our global distribution network. Intangible assets are principally related to the Viccarbe trade name, dealer relationships and internally developed know-how and designs, which are being amortized over periods ranging from 9 to 13 years from the date of acquisition. As of November 25, 2022, the purchase accounting for the Viccarbe acquisition was complete.

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

Other Intangible Assets
Useful Life
(Years) Fair Value
Trademark 9.0 $ 4.6
Dealer relationships 13.0 3.8
Know-how and designs 9.0 3.3
$ 11.7

The fair values of the purchased intangible assets are being amortized on a straight-line basis over their useful lives. The following table summarizes the estimated future amortization expense for the next five years as of November 25, 2022:

Fiscal Year Ending in February Amount
2023 $ 0.3
2024 1.0
2025 1.1
2026 1.0
2027 1.0
$ 4.4

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~~STEELCASE INC.~~

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

~~Halcon~~HALCON

In Q2 2023, we acquired Halcon Furniture LLC ("HALCON"), a Minnesota-based designer and manufacturer of precision-tailored wood furniture for the workplace. The transaction included the purchase of all the outstanding membership interests of ~~Halcon~~HALCON for $127.5 less customer deposits of $24.3, plus an adjustment of $1.9 for working capital. The acquisition was funded using a combination of cash on-hand and borrowings under our global committed bank facility. Up to an additional $7.5 is payable to the sellers based upon the achievement of certain revenue and gross margin targets over a six-month period. This amount was determined to be contingent consideration and was treated for accounting purposes as part of the total purchase price of the acquisition. We used the Monte Carlo simulation model to calculate the fair value of the contingent consideration as of the acquisition date, which represents a Level 3 measurement. Based upon the results of the calculation, we did not record a liability for the contingent consideration. An additional ~~amount of~~ $2.0 is ~~also~~ payable to a seller based upon continued employment over a three-year period, which is being expensed over the service period on a straight-line basis.

Tangible assets and liabilities of ~~Halcon~~HALCON were valued as of the acquisition date using a market analysis, and intangible assets were valued using a discounted cash flow analysis, which represents a Level 3 measurement. On the acquisition date, we recorded $51.8 related to identifiable intangible assets, ~~$37.1~~$36.6 related to goodwill and ~~$16.2~~$16.7 related to tangible assets. The tangible assets mainly consisted of property, plant and equipment of $30.6, working capital (primarily inventory of ~~$12.3)~~$12.8) and customer deposits of $24.3. The goodwill was recorded in the Americas segment and is deductible for U.S. income tax purposes. The goodwill resulting from the acquisition is primarily related to the growth potential of ~~Halcon~~HALCON expected to be driven by new product development, geographic expansion and the integration of ~~Halcon~~HALCON products into our dealer network. Intangible assets are principally related to dealer relationships, the ~~Halcon~~HALCON trade name and internally developed know-how and designs, which are being amortized over periods ranging from 9 to 10 years from the date of acquisition. We also acquired a backlog of orders which ~~are expected to ship~~shipped throughout ~~the remainder of~~ 2023. The purchase ~~price allocation~~accounting for the HALCON acquisition was ~~incomplete as of November 25, 2022, as we are evaluating certain deferred tax balances. The amounts recognized related to~~completed during the ~~purchase price allocation will be finalized no later than one year after the acquisition date.~~current year.

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


Other Intangible Assets	Useful Life (Years)	Fair Value

Dealer relationships	10.0	$	21.5
Trademark	9.0	14.0
Know-how and designs	9.0	12.0
Backlog	0.7	4.3
		$	51.8

The fair values of the purchased intangible assets isare being amortized on a straight-line basis over their useful lives. The following table summarizes the estimated future amortization expense for the next five years as of November ~~25, 2022:~~24, 2023:


Fiscal Year Ending in February	Fiscal Year Ending in February	Amount		Fiscal Year Ending in February	Amount
2023		$	2.3
2024	2024	5.0		2024	$	1.3
2025	2025	5.1		2025	5.1
2026	2026	5.0		2026	5.0
2027	2027	5.0		2027	5.0
2028				2028	5.0
		$	22.4		$	21.4

1716

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

12. REPORTABLE SEGMENTS

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

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

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

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

The ~~EMEA~~International segment serves customers in ~~Europe, the Middle East~~EMEA and ~~Africa primarily under the Steelcase, Coalesse, Orangebox and Viccarbe brands,~~Asia Pacific with a comprehensive portfolio of furniture and architectural ~~products.~~

~~The Other category includes Asia Pacific~~products that are marketed to corporate, government, education and ~~Designtex. Asia Pacific serves~~retail customers ~~in Australia, China, India, Japan, Korea and other countries in Southeast Asia~~ primarily ~~under~~through the Steelcase, ~~brand with a comprehensive portfolio~~Coalesse, Orangebox, Smith System and Viccarbe brands.

As required by ASC 280, all presented segment data reflects the reclassification of furniture and architectural products. Designtex 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.

~~We primarily review and evaluate revenue and operating income by~~previously reported 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 expenses include unallocated portions of shared service functions such as information technology, corporate facilities, finance, human resources, research, legal and customer aviation, plus deferred compensation expense and income or losses associated with COLI. Corporate assets consist primarily of unallocated cash and cash equivalents, COLI, fixed assets, investments in unconsolidated affiliates and right-of-use assets related to operating leases.

data. Revenue, gross profit and operating income (loss) for the three and nine months ended November ~~25, 2022~~24, 2023 and ~~November 26, 2021 and total assets as of~~ November 25, 2022 and total assets and goodwill as of November 24, 2023 and February ~~25, 2022~~24, 2023 by segment are presented in the following ~~tables:~~tables which reflect the realigned segments:

Three Months Ended Nine Months Ended
Reportable Segment Statement of Operations Data November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Revenue
Americas $ 594.7 $ 500.3 $ 1,767.1 $ 1,399.9
EMEA 157.7 168.2 451.9 430.7
Other 74.5 69.7 211.9 189.0
$ 826.9 $ 738.2 $ 2,430.9 $ 2,019.6
Operating income (loss)
Americas $ 21.2 $ 11.1 $ 63.5 $ 40.8
EMEA 4.2 8.3 (1.3) 1.0
Other (0.3) 2.0 (4.5) (7.5)
Corporate (4.6) (5.5) (20.9) (16.3)
$ 20.5 $ 15.9 $ 36.8 $ 18.0

Reportable Segment Balance Sheet Data November 25,
2022 February 25,
2022
Total assets
Americas $ 1,313.1 $ 1,110.4
EMEA 443.9 475.2
Other 223.4 227.6
Corporate 288.0 447.8
$ 2,268.4 $ 2,261.0


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

1817

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STEELCASE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)


Reportable Segment Balance Sheet Data	November 24, 2023		February 24, 2023
Total assets
Americas	$	1,663.1	$	1,631.2
International	583.8		571.6
	$	2,246.9	$	2,202.8

Goodwill
Americas	$	266.2	$	268.3
International	8.7		8.5
	$	274.9	$	276.8

13. RESTRUCTURING ACTIVITIES

In Q4 ~~2022, our Board~~2023, we implemented a series of ~~Directors approved~~ restructuring actions, primarily related to the ~~exit~~wind down of our ~~technology business~~customer aviation function in connection with our strategy to ~~shift from offering a portfolio of technology products toward partnering with technology companies to~~reinvent our go-to-market model and create ~~integrated collaborative solutions.~~new customer experiences. The restructuring actions ~~primarily~~ included ~~involuntary~~ terminations of ~~the majority of~~approximately 25 salaried employees ofin the ~~business and the termination~~Americas segment. We expect to incur approximately $4.5 of ~~supplier and customer contracts related to the business. We incurred $4.7 in~~ restructuring costs in the Americas segment related to these actions, primarily consisting of cash severance payments and payment of other business exit costs. We recorded $1.8 related to employee termination costs and $2.4 related to business exit and other related costs during Q1 2023. In Q2 2023, we recorded a charge of $0.5 related to the impairment of a right-of-use operating lease asset which was utilized by our technology business. These restructuring actions are complete.

In Q3 2023, our Board of Directors approved restructuring actions to reduce operational spending across certain functions in response to a recent decline in order volume and lower-than-expected return-to-office trends in the Americas segment. The restructuring actions included terminations of approximately 130 salaried employees in the Americas segment and Corporate functions. In Q3 2023, we incurred $10.6 of restructuring costs related to these actions in the Americas segment, consisting of cash severance payments and other separation-related benefits. ~~The~~We incurred $0.1, $0.1, and $0.7 of restructuring costs ~~incurred~~in the Americas segment for these actions in Q3 ~~2023 represent~~2024, Q2 2024, and Q1 2024, respectively. We also incurred $3.6 of workforce reductions and other separation-related benefits in the ~~total expected~~Americas segment for these actions in Q4 2023. We expect these actions to be completed by the end of 2024.

In Q1 2024, we announced a series of restructuring actions in response to continued decline in order volume, persisting inflationary pressures, and decreasing plant utilization. These actions involve the involuntary terminations of approximately 40 to 50 salaried roles in EMEA, the elimination of approximately 240 positions in Asia Pacific, and the involuntary terminations of approximately 30 employees in the Americas in connection with the closing of our regional distribution center in Atlanta, Georgia. We expect to incur restructuring costs of approximately $16 to $18 in the International segment and approximately $1 in the Americas segment related to these actions, ~~which are~~consisting of cash severance payments and other separation-related benefits. We incurred restructuring costs of $1.5, $7.8, and $6.8 in the International segment for these actions in Q3 2024, Q2 2024, and Q1 2024, respectively. We also incurred $0.6 in the Americas segment for these actions during Q1 2024. We expect these actions to be substantially ~~complete.~~completed by the end of 2024.

The following table details the changes in the restructuring reserve balance for the nine months ended November ~~25, 2022:~~24, 2023:

Workforce Reductions Business Exit and Related Costs Total
Balance as of February 25, 2022 $ — $ — $ —
Restructuring costs 12.4 2.4 14.8
Payments (11.0) (2.4) (13.4)
Balance as of November 25, 2022 $ 1.4 $ — $ 1.4


	Workforce Reductions
Balance as of February 24, 2023	$	4.0
Restructuring costs	17.8
Payments	(7.3)
Balance as of November 24, 2023	$	14.5

1918

~~Tabl~~e Table of Contents

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 ("MD&A") should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February ~~25, 2022.~~24, 2023. 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.

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,~~operations, balance sheets or statements of cash flows of the company. The non-GAAP financial measures used are (1) organic revenue growth (decline), (2) adjusted operating income (loss) and (3) adjusted earnings per share. Pursuant to the requirements of Regulation G, we have provided a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure in the tables below. These measures are supplemental to, and should be used in conjunction with, the most comparable GAAP measures. Management uses these non-GAAP financial measures to monitor and evaluate financial results and trends. See Non-GAAP Financial Measures for a description of these measures and why management believes they are also useful to investors.

Financial Summary

Our reportable segments consist of the Americas segment ~~the EMEA segment~~ and the ~~Other category. Unallocated corporate expenses are reported as Corporate.~~International segment. See Note 12 to the condensed consolidated financial statements for additional information.

Results of Operations


		Three Months Ended								Nine Months Ended								Three Months Ended											Nine Months Ended
Statement of Operations Data	Statement of Operations Data	November 25, 2022				November 26, 2021				November 25, 2022				November 26, 2021					Statement of Operations Data	November 24, 2023			November 25, 2022								November 24, 2023							November 25, 2022
Revenue	Revenue	$	826.9	100.0	%	$	738.2	100.0	%	$	2,430.9	100.0	%	$	2,019.6	100.0	%							Revenue		$	777.9		100.0	%			$	826.9		100.0	%			$	2,384.4		100.0	%		$	2,430.9	100.0	%
Cost of sales	Cost of sales	587.7		71.0		534.6		72.4		1,748.4		71.9		1,454.5		72.0								Cost of sales		525.5			67.6				587.7			71.0				1,611.2			67.6			1,748.4		71.9
Restructuring costs	Restructuring costs	1.4		0.2		—		—		2.3		0.1		—		—								Restructuring costs		0.1			—				1.4			0.2				2.9			0.1			2.3		0.1
Gross profit	Gross profit	237.8		28.8		203.6		27.6		680.2		28.0		565.1		28.0								Gross profit		252.3			32.4				237.8			28.8				770.3			32.3			680.2		28.0
Operating expenses	Operating expenses	208.1		25.2		187.7		25.4		630.4		26.0		547.1		27.1								Operating expenses		206.5			26.5				208.1			25.2				663.0			27.8			630.4		26.0
Restructuring costs	Restructuring costs	9.2		1.1		—		—		13.0		0.5		—		—								Restructuring costs		2.0			0.3				9.2			1.1				15.2			0.6			13.0		0.5
Operating income	Operating income	20.5		2.5		15.9		2.2		36.8		1.5		18.0		0.9								Operating income		43.8			5.6				20.5			2.5				92.1			3.9			36.8		1.5
Interest expense	Interest expense	(7.6)		(0.9)		(6.5)		(0.9)		(21.2)		(0.9)		(19.3)		(1.0)								Interest expense		(6.4)			(0.8)				(7.6)			(0.9)				(19.6)			(0.8)			(21.2)		(0.9)
Investment income	Investment income	0.3		—		0.1		—		0.7		—		0.4		—								Investment income		2.3			0.3				0.3			—				3.6			0.1			0.7		—
Other income, net	Other income, net	3.4		0.4		2.5		0.3		10.9		0.5		3.5		0.2								Other income, net		0.9			0.1				3.4			0.4				4.4			0.2			10.9		0.5
Income before income tax expense (benefit)		16.6		2.0		12.0		1.6		27.2		1.1		2.6		0.1
Income tax expense (benefit)		5.2		0.6		2.4		0.3		7.6		0.3		(3.6)		(0.2)
Income before income tax expense																					Income before income tax expense	40.6			5.2			16.6				2.0			80.5				3.4			27.2			1.1
Income tax expense																					Income tax expense	9.8			1.2			5.2				0.6			20.7				0.9			7.6			0.3
Net income	Net income	$	11.4	1.4	%	$	9.6	1.3	%	$	19.6	0.8	%	$	6.2	0.3	%							Net income		$	30.8		4.0	%			$	11.4		1.4	%			$	59.8		2.5	%		$	19.6	0.8	%
Earnings per share:	Earnings per share:																							Earnings per share:
Basic	Basic	$	0.10			$	0.08			$	0.17			$	0.05									Basic		$	0.26						$	0.10						$	0.50					$	0.17
Diluted	Diluted	$	0.10			$	0.08			$	0.17			$	0.05									Diluted		$	0.26						$	0.10						$	0.50					$	0.17

Table of Contents


Q3 2024 Organic Revenue Growth (Decline)	Americas			International			Consolidated
Q3 2023 revenue	$	619.8		$	207.1		$	826.9

Divestitures	(8.6)			(2.4)			(11.0)
Currency translation effects	(0.4)			11.0			10.6
Q3 2023 revenue, adjusted	610.8			215.7			826.5
Q3 2024 revenue	586.1			191.8			777.9


Organic growth (decline) $	$	(24.7)		$	(23.9)		$	(48.6)
Organic growth (decline) %	(4)		%	(11)		%	(6)		%


Year-to-date 2024 Organic Revenue Growth (Decline)	Americas			International			Consolidated
Year-to-date 2023 revenue	$	1,840.6		$	590.3		$	2,430.9
Acquisition	21.8			—			21.8
Divestitures	(14.8)			(6.6)			(21.4)
Currency translation effects	(3.3)			14.3			11.0
Year-to-date 2023 revenue, adjusted	1,844.3			598.0			2,442.3
Year-to-date 2024 revenue	1,838.2			546.2			2,384.4
Organic growth (decline) $	$	(6.1)		$	(51.8)		$	(57.9)
Organic growth (decline) %	—		%	(9)		%	(2)		%


Adjusted Operating Income	Three Months Ended								Nine Months Ended
	November 24, 2023				November 25, 2022				November 24, 2023				November 25, 2022
Operating income	$	43.8	5.6	%	$	20.5	2.5	%	$	92.1	3.9	%	$	36.8	1.5	%
Amortization of purchased intangible assets	4.2		0.5		6.6		0.8		12.9		0.6		16.8		0.7

Restructuring costs	2.1		0.3		10.6		1.3		18.1		0.7		15.3		0.6
Adjusted operating income	$	50.1	6.4	%	$	37.7	4.6	%	$	123.1	5.2	%	$	68.9	2.8	%


Adjusted Earnings Per Share	Three Months Ended				Nine Months Ended
	November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Earnings per share	$	0.26	$	0.10	$	0.50	$	0.17
Amortization of purchased intangible assets, per share	0.04		0.05		0.11		0.14
Income tax effect of amortization of purchased intangible assets, per share	(0.01)		(0.02)		(0.03)		(0.04)
Restructuring costs, per share	0.02		0.09		0.16		0.13
Income tax effect of restructuring costs, per share	(0.01)		(0.02)		(0.04)		(0.03)
Adjusted earnings per share	$	0.30	$	0.20	$	0.70	$	0.37

~~Tabl~~e Table of Contents

Q3 2023 Organic Revenue Growth Americas EMEA Other Consolidated
Q3 2022 revenue $ 500.3 $ 168.2 $ 69.7 $ 738.2
Acquisitions 18.9 1.2 — 20.1
Currency translation effects (1.7) (24.7) (3.0) (29.4)
Q3 2022 revenue, adjusted 517.5 144.7 66.7 728.9
Q3 2023 revenue 594.7 157.7 74.5 826.9
Organic growth $ $ 77.2 $ 13.0 $ 7.8 $ 98.0
Organic growth % 15 % 9 % 12 % 13 %

Year-to-date 2023 Organic Revenue Growth Americas EMEA Other Consolidated
Year-to-date 2022 revenue $ 1,399.9 $ 430.7 $ 189.0 $ 2,019.6
Acquisitions 35.0 6.2 — 41.2
Currency translation effects (2.9) (54.3) (5.1) (62.3)
Year-to-date 2022 revenue, adjusted 1,432.0 382.6 183.9 1,998.5
Year-to-date 2023 revenue 1,767.1 451.9 211.9 2,430.9
Organic growth $ $ 335.1 $ 69.3 $ 28.0 $ 432.4
Organic growth % 23 % 18 % 15 % 22 %

Adjusted Operating Income Three Months Ended Nine Months Ended
November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Operating income $ 20.5 2.5 % $ 15.9 2.2 % $ 36.8 1.5 % $ 18.0 0.9 %
Amortization of purchased intangible assets 6.6 0.8 3.6 0.4 16.8 0.7 10.8 0.5
Restructuring costs 10.6 1.3 — — 15.3 0.6 — —
Adjusted operating income $ 37.7 4.6 % $ 19.5 2.6 % $ 68.9 2.8 % $ 28.8 1.4 %

Adjusted Earnings Per Share Three Months Ended Nine Months Ended
November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Earnings per share $ 0.10 $ 0.08 $ 0.17 $ 0.05
Amortization of purchased intangible assets, per share 0.05 0.03 0.14 0.09
Income tax effect of amortization of purchased intangible assets, per share (0.02) — (0.04) (0.02)
Restructuring costs, per share 0.09 — 0.13 —
Income tax effect of restructuring costs, per share (0.02) — (0.03) —
Adjusted earnings per share $ 0.20 $ 0.11 $ 0.37 $ 0.12

Overview

In Q1 2024, we realigned our reportable segments for financial reporting purposes. Effective as of the end of Q1 2024, Designtex and previously unallocated Corporate expenses are included in the Americas segment, and the Europe, the Middle East and Africa ("EMEA") and Asia Pacific operating segments are aggregated and reported as the International segment. All prior year results are reclassified so as to be directly comparable to these realigned segments.

In Q3 ~~2023,~~2024, our earnings improved year over year, despite a decline in revenue, ~~increased 12%~~primarily driven by continued pricing benefits from the actions we implemented over the last two years in response to significant inflationary pressures. As those inflationary pressures have moderated, our pricing benefits and operational improvements resulted in a significantly higher gross margin compared to Q3 2023. We began Q3 2024 with a backlog which was 26 percent lower than the prior year, but the effects of the lower backlog were partially offset by order growth globally and faster order fulfillment patterns in the Americas. Orders (adjusted for the impact of divestitures and currency translation effects) grew 15 percent in Q3 2024 compared to the prior year, driven by strong beginning order backlog and significant pricing benefits. We continued to experience significant inflation in commodities, fuel and logistics costs during the quarter, but gross margin improved compared to the prior year as our year-over-year pricing benefits have exceeded year-over-year inflation. Beginning in Q4 2023 and into the first half of 2024, we expect to have continued gross margin improvement from our pricing actions, as we aim to recover the cumulative impact of inflation incurred over the past two years.

~~Tabl~~e ~~of Contents~~

Our orders declined by 17% in Q3 2023 compared to the prior year, with declines across all segments. Orders were impacted by softening industry demand patterns believed to be driven by reduced sentiment related to growing macroeconomic and geopolitical concerns. In response to these demand patterns, we have initiated actions to reduce our operational spending, including workforce reductions in the Americas in Q3 2023, and we intend to maintain our focus on controlled spending during Q4 2023. In addition, we recently announced actions to wind down our aviation department and sell our corporate aircraft.year.

Q3 ~~2023~~2024 Compared to Q3 ~~2022~~2023

We recorded net income of $30.8 and earnings per share of $0.26 in Q3 2024 compared to net income of $11.4 and earnings per share of $0.10 in ~~Q3 2023 compared to net income of $9.6 and earnings per share of $0.08 in~~ the prior year.Operating income of ~~$20.5~~$43.8 in Q3 ~~2023~~2024 represented an ~~increase~~improvement of ~~$4.6~~$23.3 compared to operating income of ~~$15.9~~$20.5 in the prior year. The increase was driven by higher pricing benefits, ~~net~~a $9.5 benefit from a decrease in the valuation of ~~inflation,~~a contingent earnout liability, $5.4 of gains related to the sale of land and ~~higher volume, which improved gross margin,~~other fixed assets and lower restructuring costs, partially offset by ~~higher~~the impacts of lower volume. We reported adjusted operating ~~expenses~~income of $50.1 and ~~$10.6~~adjusted earnings per share of ~~restructuring costs related~~$0.30 in Q3 2024 compared to ~~workforce reductions in the Americas. We reported~~ adjusted operating income of $37.7 and adjusted earnings per share of $0.20 in ~~Q3 2023, and we had adjusted operating income of $19.5 and adjusted earnings per share of $0.11 in~~ the prior year.

Revenue of ~~$826.9~~$777.9 in Q3 ~~2023~~2024 represented ~~an increase~~a decrease of ~~$88.7~~$49.0 or ~~12%~~6% compared to the prior year. Approximately ~~$85~~$50 of ~~the increase was related to~~ higher pricing benefits and ~~approximately $30 was related to higher volume (including acquisitions), partially~~$10.6 of favorable currency translation effects were more than offset by approximately ~~$29 of unfavorable currency translation effects, primarily in EMEA.~~$110 related to lower volume. Revenue ~~increased~~decreased by ~~19%~~5% in the Americas, and ~~by 7% in the Other category, while EMEA~~International revenue decreased by 6%7%. ~~Organic~~On an organic basis, revenue ~~growth was $98.0 or 13%~~declined 6% compared to the prior year, with ~~15% growth~~a 4% decline in the Americas ~~9% growth~~and an 11% decline in ~~EMEA and 12% growth in the Other category.~~International.

Cost of sales as a percentage of revenue ~~decreased~~improved by ~~140~~approximately 350 basis points in Q3 ~~2023~~2024 compared to the prior year.The improvement was driven by approximately ~~$55~~$50 of higher pricing benefits ~~net of inflation,~~ and approximately $8 from operational improvements (which included labor efficiencies and lower freight costs, primarily in the ~~benefits of higher volume,~~Americas), partially offset by ~~approximately $8~~the impacts of lower volume. Cost of sales as a percentage of revenue improved by 360 basis points in the Americas and by 350 basis points in International.

Operating expenses decreased by $1.6 in Q3 2024 but increased by 130 basis points as a percentage of revenue, compared to the prior year. Operating expenses in Q3 2024 included:

•$7.4 of higher variable compensation expense,

•$2.7 of unfavorable currency translation effects,

•$9.5 of benefit from a decrease in the valuation of a contingent earnout liability and

•$5.4 of gains related to the sale of land and other fixed ~~overhead~~assets.

We recorded restructuring costs of $2.1 in Q3 2024, primarily related to the previously announced restructuring actions in International. See Note 13 to the condensed consolidated financial statements for additional information.

Our Q3 2024 effective tax rate was approximately 24.1% compared to a Q3 2023 effective tax rate of 31.3%.

Year-to-date 2024 Compared to Year-to-date 2023

We recorded net income of $59.8 and ~~labor inefficiencies~~earnings per share of $0.50 in year-to-date 2024 compared to net income of $19.6 and ~~$6.5~~earnings per share of $0.17 in the prior year. Operating income of $92.1 in year-to-date 2024 represented an improvement of $55.3 compared to operating income of $36.8 in the prior year.The improvement was driven by higher pricing benefits, partially offset by the impacts of lower volume and higher operating expenses. We reported adjusted operating income of $123.1 and adjusted earnings per share of $0.70 in year-to-date 2024 compared to adjusted operating income of $68.9 and adjusted earnings per share of $0.37 in the prior year.

Table of Contents

Revenue of $2,384.4 in year-to-date 2024 represented a decline of $46.5 compared to the prior year, primarily driven by a decline in International.Approximately $265 of lower volume (net of the impact of an acquisition and divestitures) was partially offset by $210 related to higher pricing benefits and $11.0 of favorable currency translation effects. Revenue was flat in the Americas, while revenue in International decreased by 7%. On an organic basis, revenue declined 2% compared to the prior year, with the Americas flat and a 9% decline in International.

Cost of sales as a percentage of revenue improved by 430 basis points in year-to-date 2024 compared to the prior year.The improvement was driven by approximately $210 of higher pricing benefits and approximately $18 from operational improvements, partially offset by the impacts of lower volume and $13.9 of higher variable compensation expense. Cost of sales as a percentage of revenue improved by ~~300~~470 basis points in the Americas ~~but increased~~and by ~~240~~320 basis points in ~~EMEA and by 230 basis points in the Other category.~~International.

Operating expenses increased by ~~$20.4~~$32.6 in ~~Q3 2023, but decreased by 20~~year-to-date 2024, or 180 basis points as a percentage of revenue, compared to the prior year. ~~Compared to the prior year, operating~~Operating expenses in ~~Q3 2023 included~~:year-to-date 2024 included:

•$~~14.9~~31.2 of higher variable compensation expense,

•$~~8.1~~6.3 from ~~acquisitions and~~an acquisition,

•$~~3.4~~4.4 of unfavorable currency translation effects,

•$2.2 of higher marketing, product development and sales expenses,

•~~partially offset by $5.9~~approximately $6 of ~~favorable currency translation effects.~~higher spending in other functional areas and

•$9.5 of benefit from a decrease in the valuation of a contingent earnout liability.

Operating expenses also included $5.4 of gains related to the sale of land and other fixed assets and $5.1 of gains primarily related to the sale of an aircraft and other aviation assets in year-to-date 2024 compared to a $4.0 gain from the sale of land in year-to-date 2023.

We recorded restructuring costs of ~~$10.6~~$18.1 in ~~the Americas~~year-to-date 2024 and $15.3 in Q3year-to-date 2023. See Note 13 to the condensed consolidated financial statements for additional information.

Our ~~Q3 2023~~year-to-date 2024 effective tax rate was ~~31.3%~~approximately 25.7% compared to a ~~Q3 2022 effective tax rate of 20.0%.~~

~~Year-to-date 2023 Compared to Year-to-date 2022~~

We recorded net income of $19.6 and earnings per share of $0.17 in year-to-date 2023 compared to net income of $6.2 and earnings per share of $0.05 in the prior year. Operating income of $36.8 in year-to-date 2023 represented an increase of $18.8 compared to operating income of $18.0 in the prior year.The increase was driven by higher volume and higher pricing benefits, net of inflation, which improved gross margin, and lower operating expenses as a percentage of revenue, partially offset by $15.3 of restructuring costs. We reported adjusted operating income of $68.9 and adjusted earnings per share of $0.37 in year-to-date 2023, and we had adjusted operating income of $28.8 and adjusted earnings per share of $0.12 in the prior year.

~~Tabl~~e ~~of Contents~~

~~Revenue of $2,430.9 in year-to-date 2023 represented an increase of $411.3 or 20% compared to the prior year, driven by growth across all segments.~~Approximately $250 of the increase was related to higher volume (including acquisitions), and approximately $215 was related to higher pricing benefits, partially offset by approximately $62 of unfavorable currency translation effects, primarily in EMEA. Revenue increased by 26% in the Americas, 5% in EMEA and 12% in the Other category. Organic revenue growth was $432.4 or 22% compared to the prior year, with 23% growth in the Americas, 18% growth in EMEA and 15% growth in the Other category.

~~Cost of sales as a percentage of revenue decreased by 10 basis points in year-to-date 2023 compared to the prior year.~~The improvement was driven by approximately $86 of higher pricing benefits, net of inflation, and the benefits of higher volume, mostly offset by approximately $26 of higher fixed overhead costs and labor inefficiencies and $10.3 of higher variable compensation expense. ~~Cost of sales as a percentage of revenue improved by 70 basis points in the Americas,but increased by 220 basis points in EMEA and by 30 basis points in the Other category.~~

Operating expenses increased by $83.3 in year-to-date 2023, but decreased by 110 basis points as a percentage of revenue, compared to the prior year, which included a $15.4 gain from the sale of land. Operating expenses in year-to-date 2023 included:

•~~$28.6 of higher marketing, product development and sales expenses,~~

•~~$23.5 of higher variable compensation expense,~~

•~~$17.9 from acquisitions and~~

•~~$10.7 of higher spending in other functional areas, primarily information technology, facilities and strategy,~~

•~~partially offset by $14.5 of favorable currency translation effects and a $4.0 gain from the sale of land.~~

~~We recorded restructuring costs of $15.3 in the Americas in year-to-date 2023. See Note 13 to the condensed consolidated financial statements for additional information~~.

~~Our~~ year-to-date 2023 effective tax rate ~~was~~of 27.9% ~~compared to a year-to-date 2022 effective tax rate of (138.5)%, which included $4.6 of discrete tax benefits.~~.

Interest Expense, Investment Income and Other Income, Net


		Three Months Ended				Nine Months Ended					Three Months Ended				Nine Months Ended
Interest Expense, Investment Income and Other Income, Net	Interest Expense, Investment Income and Other Income, Net	November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021		Interest Expense, Investment Income and Other Income, Net	November 24, 2023		November 25, 2022		November 24, 2023		November 25, 2022
Interest expense	Interest expense	$	(7.6)	$	(6.5)	$	(21.2)	$	(19.3)	Interest expense	$	(6.4)	$	(7.6)	$	(19.6)	$	(21.2)
Investment income	Investment income	0.3		0.1		0.7		0.4		Investment income	2.3		0.3		3.6		0.7
Other income, net:	Other income, net:									Other income, net:
Equity in income of unconsolidated affiliates	Equity in income of unconsolidated affiliates	4.4		2.2		9.9		4.5		Equity in income of unconsolidated affiliates	2.1		4.4		7.3		9.9
Foreign exchange gains (losses)	Foreign exchange gains (losses)	(0.4)		0.9		1.2		0.6		Foreign exchange gains (losses)	(0.3)		(0.4)		(0.4)		1.2
Net periodic pension and post-retirement credit, excluding service cost		(0.6)		(0.2)		(1.0)		(0.5)
Net periodic pension and post-retirement expense, excluding service cost										Net periodic pension and post-retirement expense, excluding service cost	(0.2)		(0.6)		(0.5)		(1.0)
Miscellaneous income (expense), net	Miscellaneous income (expense), net	—		(0.4)		0.8		(1.1)		Miscellaneous income (expense), net	(0.7)		—		(2.0)		0.8
Total other income, net	Total other income, net	3.4		2.5		10.9		3.5		Total other income, net	0.9		3.4		4.4		10.9
Total interest expense, investment income and other income, net	Total interest expense, investment income and other income, net	$	(3.9)	$	(3.9)	$	(9.6)	$	(15.4)	Total interest expense, investment income and other income, net	$	(3.2)	$	(3.9)	$	(11.6)	$	(9.6)

~~Interest expense increased in Q3 2023 and year-to-date 2023 compared to the prior year as a result of borrowings under our global committed bank facility. Total other~~Miscellaneous income (expense), net increased by $0.9 in Q3 2023 compared to the prior year, driven by a $2.2 increase in income recorded from our unconsolidated affiliates, partially offset by a $1.3 increase of foreign exchange losses. Total other income, net increased by $7.4 in year-to-date 2023 ~~compared to~~included a $2.2 gain on the ~~prior year, driven by a $5.4 increase~~sale of an investment in ~~income recorded from our~~an unconsolidated ~~affiliates and a $0.6 increase of foreign exchange gains.~~

affiliate.

2322

~~Tabl~~e Table of Contents

Business Segment Review

See Note 12 to the condensed consolidated financial statements for additional information regarding our business segments.

Americas


		Three Months Ended								Nine Months Ended								Three Months Ended							Nine Months Ended
Statement of Operations Data — Americas	Statement of Operations Data — Americas	November 25, 2022				November 26, 2021				November 25, 2022				November 26, 2021					Statement of Operations Data — Americas	November 24, 2023	November 25, 2022						November 24, 2023					November 25, 2022
Revenue	Revenue	$	594.7	100.0	%	$	500.3	100.0	%	$	1,767.1	100.0	%	$	1,399.9	100.0	%					Revenue	$	586.1	100.0	%		$	619.8	100.0	%		$	1,838.2	100.0	%	$	1,840.6	100.0	%
Cost of sales	Cost of sales	422.1		71.0		370.3		74.0		1,268.0		71.8		1,015.4		72.5						Cost of sales	392.9		67.0			437.2		70.6			1,224.9		66.6		1,312.1		71.3
Restructuring costs	Restructuring costs	1.4		0.2		—		—		2.3		0.1		—		—						Restructuring costs	0.4		0.1			1.4		0.2			1.0		0.1		2.3		0.1
Gross profit	Gross profit	171.2		28.8		130.0		26.0		496.8		28.1		384.5		27.5						Gross profit	192.8		32.9			181.2		29.2			612.3		33.3		526.2		28.6
Operating expenses	Operating expenses	140.8		23.7		118.9		23.8		420.3		23.8		343.7		24.6						Operating expenses	155.5		26.6			154.7		24.9			494.4		26.9		469.0		25.5

Restructuring costs	Restructuring costs	9.2		1.5		—		—		13.0		0.7		—		—						Restructuring costs	0.1		—			9.2		1.5			0.9		—		13.0		0.7
Operating income	Operating income	$	21.2	3.6	%	$	11.1	2.2	%	$	63.5	3.6	%	$	40.8	2.9	%					Operating income	$	37.2	6.3	%		$	17.3	2.8	%		$	117.0	6.4	%	$	44.2	2.4	%


Adjusted Operating Income — Americas	Adjusted Operating Income — Americas	Three Months Ended								Nine Months Ended								Adjusted Operating Income — Americas	Three Months Ended								Nine Months Ended
		November 25, 2022				November 26, 2021				November 25, 2022				November 26, 2021					November 24, 2023				November 25, 2022				November 24, 2023				November 25, 2022
Operating income	Operating income	$	21.2	3.6	%	$	11.1	2.2	%	$	63.5	3.6	%	$	40.8	2.9	%	Operating income	$	37.2	6.3	%	$	17.3	2.8	%	$	117.0	6.4	%	$	44.2	2.4	%
Amortization of purchased intangible assets	Amortization of purchased intangible assets	5.5		1.0		2.6		0.5		13.4		0.8		7.8		0.6		Amortization of purchased intangible assets	3.1		0.6		5.5		0.9		9.4		0.5		13.4		0.8

Restructuring costs	Restructuring costs	10.6		1.7		—		—		15.3		0.8		—		—		Restructuring costs	0.5		0.1		10.6		1.7		1.9		0.1		15.3		0.8
Adjusted operating income	Adjusted operating income	$	37.3	6.3	%	$	13.7	2.7	%	$	92.2	5.2	%	$	48.6	3.5	%	Adjusted operating income	$	40.8	7.0	%	$	33.4	5.4	%	$	128.3	7.0	%	$	72.9	4.0	%

Operating income in the Americas increased by ~~$10.1~~$19.9 in Q3 ~~2023~~2024 compared to the prior year. The increase was driven by higher pricing benefits ~~net of inflation,~~ and ~~higher volume, which improved gross margin,~~lower restructuring costs, partially offset by ~~higher operating expenses and $10.6~~the impacts of ~~restructuring costs.~~lower volume. Adjusted operating income of ~~$37.3~~$40.8 in Q3 ~~2023~~2024 represented an improvement of ~~$23.6~~$7.4 compared to the prior year. Operating income in the Americas increased by ~~$22.7~~$72.8 in year-to-date 2023 compared to the prior year, which included a $15.4 gain from the sale of land. The year-to-date improvement was driven by higher revenue and lower operating expenses as a percentage of revenue. Year-to-date 2023 operating income also included $15.3 of restructuring costs. Adjusted operating income of $92.2 in year-to-date 2023 represented an improvement of $43.6 compared to the prior year.

~~The Americas revenue represented 71.9% of consolidated revenue in Q3 2023. In Q3 2023, revenue increased by $94.4 or 19%~~2024 compared to the prior year. The increase ~~included~~was driven by the same factors as the quarter. Adjusted operating income of $128.3 in year-to-date 2024 represented an improvement of $55.4 compared to the prior year.

The Americas revenue represented 75.3% of consolidated revenue in Q3 2024. In Q3 2024, revenue decreased by $33.7 or 5% compared to the prior year. Approximately $70 of the decline was related to lower volume, partially offset by approximately ~~$65~~$35 related to higher pricing ~~benefits and approximately $30 related to higher volume (including acquisitions). Organic~~benefits. On an organic basis, revenue ~~growth~~declined $24.7 or 4% in Q3 ~~2023 was $77.2 or 15%~~2024 compared to the prior year. The Americas revenue represented ~~72.7%~~77.1% of consolidated revenue in year-to-date ~~2023. Year-to-date 2023~~2024. In year-to-date 2024, revenue decreased by $2.4 compared to the prior year. Compared to the prior year, the Americas revenue was impacted by approximately $170 related to lower volume (net of ~~$1,767.1~~the impact of an acquisition and divestitures), offset by approximately $170 related to higher pricing benefits, and approximately $3 of unfavorable currency translation effects. On an organic basis, revenue declined $6.1 in year-to-date 2024 compared to the prior year.

Cost of sales as a percentage of revenue improved by 360 basis points in Q3 2024 compared to the prior year. The improvement was driven by approximately $35 of higher pricing benefits and approximately $8 from operational improvements (which included labor efficiencies and lower freight costs), partially offset by the impacts of lower volume. Cost of sales as a percentage of revenue improved by 470 basis points in year-to-date 2024 compared to the prior year. The improvement was driven by approximately $170 of higher pricing benefits and approximately $18 from operational improvements, partially offset by the impacts of lower volume and $13.1 of higher variable compensation expense.

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Operating expenses increased by $0.8 in Q3 2024, or 170 basis points as a percentage of revenue, compared to the prior year. Operating expenses in Q3 2024 included:

•$6.6 of higher variable compensation expense,

•$2.1 of higher marketing, product development and sales expenses,

•$5.4 of gains related to the sale of land and other fixed assets and

•$4.7 of benefit from a decrease in the valuation of a contingent earnout liability.

Operating expenses increased by $25.4 in year-to-date 2024, or 140 basis points as a percentage of revenue, compared to the prior year. Operating expenses in year-to-date 2024 included:

•$27.2 of higher variable compensation expense,

•$6.3 from an acquisition and

•$4.7 of benefit from a decrease in the valuation of a contingent earnout liability.

Operating expenses included $5.4 of gains related to the sale of land and other fixed assets and $5.1 of gains primarily related to the sale of an aircraft and other aviation assets in year-to-date 2024 compared to a $4.0 gain from the sale of land in year-to-date 2023.

International

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


	Three Months Ended								Nine Months Ended
Statement of Operations Data — International	November 24, 2023				November 25, 2022				November 24, 2023				November 25, 2022
Revenue	$	191.8	100.0	%	$	207.1	100.0	%	$	546.2	100.0	%	$	590.3	100.0	%
Cost of sales	132.6		69.2		150.5		72.7		386.3		70.7		436.3		73.9
Restructuring costs (benefits)	(0.3)		(0.2)		—		—		1.9		0.4		—		—
Gross profit	59.5		31.0		56.6		27.3		158.0		28.9		154.0		26.1
Operating expenses	51.0		26.6		53.4		25.8		168.6		30.9		161.4		27.4
Restructuring costs	1.9		1.0		—		—		14.3		2.6		—		—
Operating income (loss)	$	6.6	3.4	%	$	3.2	1.5	%	$	(24.9)	(4.6)	%	$	(7.4)	(1.3)	%


Adjusted Operating Income (Loss) — International	Three Months Ended								Nine Months Ended
	November 24, 2023				November 25, 2022				November 24, 2023				November 25, 2022
Operating income (loss)	$	6.6	3.4	%	$	3.2	1.5	%	$	(24.9)	(4.6)	%	$	(7.4)	(1.3)	%
Amortization of purchased intangible assets	1.1		0.6		1.1		0.6		3.5		0.6		3.4		0.6
Restructuring costs	1.6		0.8		—		—		16.2		3.0		—		—
Adjusted operating income (loss)	$	9.3	4.8	%	$	4.3	2.1	%	$	(5.2)	(1.0)	%	$	(4.0)	(0.7)	%

Operating income in International increased by $3.4 in Q3 2024 compared to the prior year. The increase was driven by higher pricing benefits and lower operating expenses, partially offset by the impacts of lower volume and higher restructuring costs. Adjusted operating income of $9.3 in Q3 2024 represented an increase of ~~$367.2~~$5.0 compared to the prior year. The operating loss in International increased by $17.5 in year-to-date 2024 compared to the prior year. The increase was driven by the impacts of lower volume, higher restructuring costs and higher operating expenses, partially offset by higher pricing benefits. The adjusted operating loss of $5.2 in year-to-date 2024 represented a decline of $1.2 compared to the prior year.

International revenue represented 24.7% of consolidated revenue in Q3 2024. In Q3 2024, revenue decreased by $15.3 or ~~26%~~7% compared to the prior year. Approximately ~~$205~~$40 related to lower volume which was partially offset by approximately $15 of higher pricing benefits and approximately $11 of favorable currency translation effects. On an organic basis, revenue declined $23.9 or 11% in Q3 2024 compared to the prior year. International revenue represented 22.9% of consolidated revenue in year-to-date 2024. In year-to-date 2024, revenue decreased by

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$44.1 or 7% compared to the prior year.Approximately $100 related to lower volume (net of the ~~increase related to~~impact of a divestiture) which was partially offset by approximately $40 of higher ~~volume,~~pricing benefits and approximately ~~$165 related to higher pricing benefits~~. ~~Organic~~$14 of favorable currency translation effects. On an organic basis, revenue ~~growth~~declined $51.8 or 9% in year-to-date ~~2023 was $335.1 or 23%~~2024 compared to the prior year.

Cost of sales as a percentage of revenue improved by ~~300~~350 basis points in Q3 ~~2023~~2024 compared to the prior year. The improvement was driven by approximately ~~$49~~$15 of higher pricing benefits, ~~net of inflation, and the benefits of higher volume,~~ partially offset by ~~approximately $8~~the impacts of ~~higher fixed overhead costs and labor inefficiencies and $6.0 of higher variable compensation expense.~~lower volume. Cost of sales as a percentage of revenue improved by 70320 basis points in year-to-date ~~2023~~2024 compared to the prior year. The improvement was driven by approximately ~~$66~~$40 of higher pricing benefits, ~~net of inflation, and the benefits of higher volume,~~ partially offset by ~~approximately $25~~the impacts of ~~higher fixed overhead costs and labor inefficiencies and $9.0 of higher variable compensation expense.~~

~~Tabl~~e ~~of Contents~~

lower volume.

Operating expenses ~~increased~~decreased by ~~$21.9~~$2.4 in Q3 ~~2023,~~2024 but decreased by 10 basis points as a percentage of revenue, compared to the prior year. The current year included $11.8 of higher variable compensation expense and $7.3 from acquisitions. Operating expenses in year-to-date 2023 increased ~~by $76.6, but decreased~~ by 80 basis points as a percentage of revenue, compared to the prior ~~year, which included a $15.4 gain from the sale of land.~~year. Operating expenses in ~~year-to-date 2023 included:~~

•~~$20.9 of higher marketing, product development and sales expenses,~~

•~~$17.8 of higher variable compensation expense,~~

•~~$14.0 from acquisitions and~~

•~~$10.8 of higher spending in other functional areas, primarily information technology, facilities and strategy,~~

•~~partially offset by a $4.0 gain from the sale of land.~~

~~EMEA~~

The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Coalesse, Orangebox and Viccarbe brands, with a comprehensive portfolio of furniture and architectural products.

Three Months Ended Nine Months Ended
Statement of Operations Data — EMEA November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Revenue $ 157.7 100.0 % $ 168.2 100.0 % $ 451.9 100.0 % $ 430.7 100.0 %
Cost of sales 114.5 72.6 118.1 70.2 333.9 73.9 309.0 71.7
Gross profit 43.2 27.4 50.1 29.8 118.0 26.1 121.7 28.3
Operating expenses 39.0 24.7 41.8 24.9 119.3 26.4 120.7 28.1
Operating income (loss) $ 4.2 2.7 % $ 8.3 4.9 % $ (1.3) (0.3) % $ 1.0 0.2 %

Adjusted Operating Income — EMEA Three Months Ended Nine Months Ended
November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Operating income (loss) $ 4.2 2.7 % $ 8.3 4.9 % $ (1.3) (0.3) % $ 1.0 0.2 %
Amortization of purchased intangible assets 1.1 0.7 1.0 0.6 3.4 0.8 3.0 0.7
Adjusted operating income $ 5.3 3.4 % $ 9.3 5.5 % $ 2.1 0.5 % $ 4.0 0.9 %

~~Operating income in EMEA decreased by $4.1 in~~ Q3 ~~2023 compared to the prior year. The decline was driven by higher cost of sales as a percentage of revenue.The operating results in EMEA decreased by $2.3 in year-to-date 2023 compared to the prior year. The decline was driven by higher cost of sales as a percentage of revenue.~~

~~EMEA revenue represented 19.1% of consolidated revenue in Q3 2023. In Q3 2023, revenue decreased by $10.5 or 6% compared to the prior year.Approximately $15 of higher pricing benefits were more than offset by approximately $25~~2024 included $2.7 of unfavorable currency translation effects and ~~lower volume.~~ ~~Organic revenue growth was $13.0 or 9% compared to~~$4.8 of benefit from a decrease in the ~~prior year, driven~~valuation of a contingent earnout liability. Operating expenses increased by ~~Germany and Spain. EMEA revenue represented 18.6% of consolidated revenue~~$7.2 in year-to-date ~~2023.~~ ~~In year-to-date 2023, revenue of $451.9 represented an increase of $21.2~~2024, or ~~5% compared to the prior year, driven by growth across all markets~~. Approximately $40 of the increase was related to higher pricing benefits, and approximately $30 was related to higher volume, partially offset by approximately $54 of unfavorable currency translation effects. Organic revenue growth year-to-date 2023 was $69.3 or 18% compared to the prior year.

Cost of sales as a percentage of revenue increased by 240 basis points in Q3 2023 compared to the prior year. The increase was driven by approximately $8 of higher inflation, approximately $1 in higher freight and labor inefficiencies, approximately $1 of unfavorable currency impacts and the impact of lower volume, partially offset by approximately $15 of higher pricing benefits. Cost of sales as a percentage of revenue increased by 220 basis points in year-to-date 2023 compared to the prior year. The increase was driven by approximately $24 of higher inflation, approximately $3 in higher overhead costs and freight and labor inefficiencies and approximately $2 of unfavorable currency impacts, partially offset by the benefits of higher volume and approximately $40 of higher pricing benefits.

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~~Operating expenses decreased by $2.8 in Q3 2023, or 20 basis points as a percentage of revenue, compared to the prior year.The current year included $5.9 of favorable currency translation effects, partially offset by $1.8 of higher variable compensation expense and $0.7 from an acquisition.Operating expenses decreased by $1.4 in year-to-date 2023, or 170~~350 basis points as a percentage of revenue, compared to the prior year. ~~The current year included $14.5~~Operating expenses in year-to-date 2024 included:

•$4.4 of ~~favorable~~unfavorable currency translation effects, ~~partially offset by $4.8~~

•$4.0 of higher variable compensation expense,

•$1.9 of higher marketing, product development and sales expenses, ~~$3.6 from an acquisition and $3.3 of higher variable compensation expense.~~

~~Other~~•

The Other category includes Asia Pacific and Designtex. Asia Pacific serves customers in Australia, China, India, Japan, Korea and other countries in Southeast Asia primarily under the Steelcase brand with a comprehensive portfolio of furniture and architectural products. Designtex 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.

Three Months Ended Nine Months Ended
Statement of Operations Data — Other November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Revenue $ 74.5 100.0 % $ 69.7 100.0 % $ 211.9 100.0 % $ 189.0 100.0 %
Cost of sales 51.1 68.6 46.2 66.3 146.5 69.1 130.1 68.8
Gross profit 23.4 31.4 23.5 33.7 65.4 30.9 58.9 31.2
Operating expenses 23.7 31.8 21.5 30.8 69.9 33.0 66.4 35.2
Operating income (loss) $ (0.3) (0.4) % $ 2.0 2.9 % $ (4.5) (2.1) % $ (7.5) (4.0) %

Operating results in the Other category decreased by $2.3 in Q3 2023 compared to the prior year. The decline was driven by higher cost of sales as a percentage of revenue and higher operating expenses as a percentage of revenue.~~Year-to-date 2023 operating results improved by $3.0 compared to the prior year. The improvement was driven by higher revenue and lower operating expenses as a percentage of revenue.~~

~~Revenue in the Other category represented 9.0% of consolidated revenue in Q3 2023. In Q3 2023, revenue increased by $4.8 or 7% compared to the prior year,driven by India, Designtex and China. Approximately $4 of the increase was related to higher volume, and approximately $1 was related to higher pricing benefits, partially offset by~~ approximately $3 of ~~unfavorable currency translation effects.~~higher spending in other functional areas and

•~~Organic revenue growth was $7.8 or 12% compared to the prior year.Revenue~~$4.8 of benefit from a decrease in the ~~Other category represented 8.7%~~valuation of consolidated revenue in year-to-date 2023. Year-to-date 2023 revenue of $211.9 represented an increase of $22.9 or 12% compared to the prior year, driven by India, Designtex and Southeast Asia. Approximately $16 of the increase was related to higher volume, and approximately $10 was related to higher pricing benefits, partially offset by approximately $5 of unfavorable currency translation effects. ~~Organic revenue growth was $28.0 or 15% compared to the prior year.~~

~~Cost of sales as~~ a percentage of revenue increased by 230 basis points in Q3 2023 compared to the prior year. The increase was driven by approximately $2 of higher inflation, and unfavorable currency impacts, partially offset by the benefits of higher volume and higher pricing benefits. Cost of sales as a percentage of revenue increased by 30 basis points in year-to-date 2023 compared to the prior year. The increase was driven by approximately $6 of higher inflation, and unfavorable currency impacts, mostly offset by the benefits of higher volume and approximately $10 of higher pricing benefits.

Operating expenses increased by $2.2 in Q3 2023, or 100 basis points as a percentage of revenue, compared to the prior year. The increase was driven by $2.1 of higher marketing, product development and sales expenses and $0.6 of higher variable compensation expense.contingent earnout liability.Operating expenses increased by $3.5 in year-to-date 2023, but decreased by 220 basis points as a percentage of revenue, compared to the prior year. The increase was driven by the same factors as the quarter.

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~~Corporate~~

Three Months Ended Nine Months Ended
Statement of Operations Data — Corporate November 25,
2022 November 26,
2021 November 25,
2022 November 26,
2021
Operating expenses $ 4.6 $ 5.5 $ 20.9 $ 16.3

Operating expenses decreased by $0.9 in Q3 2023 compared to the prior year. Operating expenses increased by $4.6 in year-to-date 2023 compared to the prior year, driven by $8.0 of lower COLI income, $1.9 of higher employee costs and $1.0 of higher variable compensation expense, partially offset by $6.3 of lower deferred compensation expense.

Non-GAAP Financial Measures

The non-GAAP financial measures used in this MD&A are: (1) organic revenue growth (decline), (2) adjusted operating income (loss) and (3) adjusted earnings per share.

Organic Revenue Growth (Decline)

We define organic revenue growth (decline) as revenue growth (decline) excluding the impact of acquisitions and divestitures and foreign currency translation effects.Organic revenue growth (decline) is calculated by adjusting prior year revenue to include revenues of acquired companies prior to the date of the company's acquisition, to exclude revenues of divested companies and to use current year average exchange rates in the calculation of foreign-denominated revenue. We believe organic revenue growth (decline) is a meaningful metric to investors as it provides a more consistent comparison of our revenue to prior periods as well as to industry peers.

Adjusted Operating Income (Loss) and Adjusted Earnings Per Share

We define adjusted operating income (loss) as operating income (loss) excluding amortization of purchased intangible assets and restructuring costs. We define adjusted earnings per share as earnings per share, on a diluted basis, excluding amortization of purchased intangible assets and restructuring costs, net of related income tax effects.

•Amortization of purchased intangible assets: We may record intangible assets (such as backlog, dealer relationships, trademarks, know-how and designs and proprietary technology) when we acquire companies. We allocate the fair value of purchase consideration to net tangible and intangible assets acquired based on their estimated fair values. The fair value estimates for these intangible assets require management to make significant estimates and assumptions, which include the useful lives of intangible assets. We believe that adjusting for amortization of purchased intangible assets provides a more consistent comparison of our operating performance to prior periods as well as to industry peers. As our business strategy in recent years has included an increased number of acquisitions, intangible asset amortization has become more significant.

•Restructuring costs: Restructuring costs may be recorded as our business strategies change or in response to changing market trends and economic conditions. We believe that adjusting for restructuring costs, which are primarily associated with business exit and workforce reduction costs, provides a more consistent comparison of our operating performance to prior periods as well as to industry peers.

~~Tabl~~e Table of Contents

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.~~initiatives and material committed cash requirements.


Liquidity Sources	Liquidity Sources	November 25, 2022		February 25, 2022		Liquidity Sources	November 24, 2023		February 24, 2023
Cash and cash equivalents	Cash and cash equivalents	$	55.0	$	200.9	Cash and cash equivalents	$	262.0	$	90.4

Company-owned life insurance	Company-owned life insurance	161.2		168.0		Company-owned life insurance	162.6		157.3
Availability under credit facilities	Availability under credit facilities	229.0		262.0		Availability under credit facilities	271.7		269.7
Total liquidity sources available	Total liquidity sources available	$	445.2	$	630.9	Total liquidity sources available	$	696.3	$	517.4

As of November ~~25, 2022,~~24, 2023, we held a total of ~~$55.0~~$262.0 in cash and cash equivalents. Of that total, ~~17%~~75% was located in the U.S., and ~~83%~~25% was located outside of the U.S., primarily in China (including Hong Kong), the United Kingdom, Mexico, India, Malaysia ~~Singapore~~ and Canada.

COLI investments are recorded at their net cash surrender value. Our investments in COLI policies are intended to be utilized as a 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 nine months ended November ~~25, 2022~~24, 2023 and November ~~26, 2021:~~25, 2022:


		Nine Months Ended					Nine Months Ended
Cash Flow Data	Cash Flow Data	November 25, 2022		November 26, 2021		Cash Flow Data	November 24, 2023		November 25, 2022
Net cash provided by (used in):	Net cash provided by (used in):					Net cash provided by (used in):
Operating activities	Operating activities	$	1.4	$	(59.1)	Operating activities	$	251.3	$	1.4
Investing activities	Investing activities	(127.5)		(51.3)		Investing activities	(5.2)		(127.5)
Financing activities	Financing activities	(16.6)		(101.5)		Financing activities	(74.0)		(16.6)
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	(2.6)		(1.6)		Effect of exchange rate changes on cash and cash equivalents	(0.2)		(2.6)
Net decrease in cash, cash equivalents and restricted cash		(145.3)		(213.5)
Net increase (decrease) in cash, cash equivalents and restricted cash						Net increase (decrease) in cash, cash equivalents and restricted cash	171.9		(145.3)
Cash, cash equivalents and restricted cash, beginning of period	Cash, cash equivalents and restricted cash, beginning of period	207.0		495.6		Cash, cash equivalents and restricted cash, beginning of period	97.2		207.0
Cash, cash equivalents and restricted cash, end of period	Cash, cash equivalents and restricted cash, end of period	$	61.7	$	282.1	Cash, cash equivalents and restricted cash, end of period	$	269.1	$	61.7

2826

~~Tabl~~e Table of Contents

Cash provided by ~~(used in)~~ operating activities


		Nine Months Ended					Nine Months Ended
Cash Flow Data — Operating Activities	Cash Flow Data — Operating Activities	November 25, 2022		November 26, 2021		Cash Flow Data — Operating Activities	November 24, 2023		November 25, 2022
Net income	Net income	$	19.6	$	6.2	Net income	$	59.8	$	19.6
Depreciation and amortization	Depreciation and amortization	67.2		62.2		Depreciation and amortization	62.8		67.2
Share-based compensation	Share-based compensation	18.0		13.4		Share-based compensation	22.1		18.0
Restructuring costs	Restructuring costs	15.3		—		Restructuring costs	18.1		15.3
Change in fair value of contingent consideration						Change in fair value of contingent consideration	(9.5)		—
Changes in accounts receivable, inventories and accounts payable	Changes in accounts receivable, inventories and accounts payable	(108.5)		(84.5)		Changes in accounts receivable, inventories and accounts payable	95.8		(108.5)
Income taxes receivable	Income taxes receivable	25.4		(1.6)		Income taxes receivable	(4.6)		25.4
Employee compensation liabilities	Employee compensation liabilities	17.0		(15.3)		Employee compensation liabilities	17.3		17.0
Employee benefit obligations	Employee benefit obligations	(14.0)		(13.5)		Employee benefit obligations	(1.7)		(14.0)
Changes in other operating assets and liabilities		(38.6)		(26.0)
Net cash provided by (used in) operating activities		$	1.4	$	(59.1)
Other						Other	(8.8)		(38.6)
Net cash provided by operating activities						Net cash provided by operating activities	$	251.3	$	1.4

In year-to-date 2024, our improved operating results drove a significant increase in cash. We generated cash from working capital primarily due to decreased levels of inventory and normalized supplier lead times related to supply chain improvements and improvements in the number of days sales outstanding in accounts receivable. In year-to-date 2023, cash ~~provided by operating activities improved compared~~was used to ~~the prior year, driven by the benefits of higher net income, partially offset by cash used in~~meet working capital ~~driven~~requirements primarily bydue to increased levels of ~~inventory. Annual payments related~~inventory which were purchased to ~~accrued variable compensation~~mitigate the impacts of supply chain disruptions, and ~~retirement plan contributions totaled $32.4 in year-to-date 2023 compared to $50.4 in the prior year. In year-to-date 2023,~~ we received $33.5 related to the carryback of our fiscal year 2021 tax loss in the U.S.~~, and we paid $13.4 of severance and other separation-related benefits and business exit costs~~ Annual payments related to ~~restructuring activities~~accrued variable compensation and retirement plan contributions totaled $77.3 in ~~our Americas segment.~~year-to-date 2024 compared to $32.4 in the prior year.

Cash used in investing activities


		Nine Months Ended					Nine Months Ended
Cash Flow Data — Investing Activities	Cash Flow Data — Investing Activities	November 25, 2022		November 26, 2021		Cash Flow Data — Investing Activities	November 24, 2023		November 25, 2022
Capital expenditures	Capital expenditures	$	(42.8)	$	(45.3)	Capital expenditures	$	(37.4)	$	(42.8)
Proceeds from disposal of fixed assets	Proceeds from disposal of fixed assets	5.6		17.4		Proceeds from disposal of fixed assets	28.2		5.6
Acquisitions, net of cash acquired		(105.3)		(32.6)
Acquisition, net of cash acquired						Acquisition, net of cash acquired	—		(105.3)
Other	Other	15.0		9.2		Other	4.0		15.0
Net cash used in investing activities	Net cash used in investing activities	$	(127.5)	$	(51.3)	Net cash used in investing activities	$	(5.2)	$	(127.5)

Capital expenditures in year-to-date ~~2023~~2024 were primarily related to investments in manufacturing operations, information technology, product development, customer-facing facilities and ~~information technology. Proceeds~~showrooms. In year-to-date 2024, proceeds from the disposal of fixed assets primarily included $14.9 of proceeds from the sale of an aircraft and other aviation assets and $12.5 from the sale of land. In year-to-date 2023, proceeds from the disposal of fixed assets included $5.6 ~~and $17.2 related to~~of proceeds from the sale of ~~land in year-to-date 2023 and year-to-date 2022, respectively.~~land. Other investing activities in year-to-date 2023 included $7.5 of proceeds from the sale of an investment in an unconsolidated affiliate and $6.6 of proceeds from COLI policy maturities. ~~Other investing activities in year-to-date 2022 included $7.0 of proceeds from COLI policy maturities.~~

Cash used in financing activities

Nine Months Ended
Cash Flow Data — Financing Activities November 25,
2022 November 26,
2021
Dividends paid $ (45.6) $ (45.9)
Common stock repurchases (3.9) (54.0)
Borrowings on global committed bank facility 480.9 —
Repayments on global committed bank facility (446.9) —
Other (1.1) (1.6)
Net cash used in financing activities $ (16.6) $ (101.5)


	Nine Months Ended
Cash Flow Data — Financing Activities	November 24, 2023		November 25, 2022
Dividends paid	$	(35.7)	$	(45.6)

Borrowings on global committed bank facility	69.0		480.9
Repayments on global committed bank facility	(69.0)		(446.9)
Repayments on note payable	(32.2)		(2.1)
Other	(6.1)		(2.9)
Net cash used in financing activities	$	(74.0)	$	(16.6)

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The following table details dividends paid per common share during each quarter of year-to-date ~~2023~~2024 and year-to-date ~~2022:~~2023:


Dividend Data	Dividend Data	First Quarter		Second Quarter		Third Quarter		Total		Dividend Data	First Quarter		Second Quarter		Third Quarter		Total
2024										2024
Dividends declared and paid per common share										Dividends declared and paid per common share	$	0.100	$	0.100	$	0.100	$	0.300
2023	2023									2023
Dividends declared and paid per common share	Dividends declared and paid per common share	$	0.145	$	0.145	$	0.100	$	0.390	Dividends declared and paid per common share	$	0.145	$	0.145	$	0.100	$	0.390
2022
Dividends declared and paid per common share		$	0.100	$	0.145	$	0.145	$	0.390

In year-to-date 2024, we borrowed and repaid $69.0 under our global committed bank facility to fund our operations and a balloon payment of $31.8 for a note payable that matured during Q1 2024. See Note 8 to the condensed consolidated financial statements for additional information.

Other financing activities include share repurchases. In year-to-date 2024, we repurchased 512,707 shares of Class A common stock for $4.2, and in year-to-date 2023, we repurchased 343,485 shares of Class A common stock ~~all of which were repurchased to satisfy participants' tax withholding obligations upon the issuance of~~for $3.9. All shares ~~under equity awards, pursuant to the terms of our Incentive Compensation Plan. In year-to-date 2022, we repurchased 3,991,083 shares of Class A common stock, 392,812 of which~~ 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.

As of November ~~25, 2022,~~24, 2023, we had ~~$6.4~~$106.4 of remaining availability under ~~the $150~~ share repurchase ~~program~~programs approved by our Board of Directors in ~~2016.~~2016 and 2024.

Liquidity Facilities

The following table summarizes available capacity under our liquidity facilities as of November ~~25, 2022:~~24, 2023:


Liquidity Facilities	November ~~25,~~24, ~~2022~~2023
Global committed bank facility	$	250.0
~~Other committed bank facility~~	~~6.7~~
Various uncommitted facilities	~~9.9~~21.8
Total credit lines available	~~266.6~~271.8
Less: Borrowings outstanding	~~(37.6)~~—
Less: Letters of credit	(0.1)
Available capacity	$	~~229.0~~271.7

We have a $250.0 global committed bank facility in effect through 2025. As of November ~~25, 2022,~~24, 2023, there were ~~$34.0 of~~no borrowings outstanding, ~~under the facility,~~there were $0.1 letters of credit which reduced our availability and we were in compliance with all covenants ~~under the facility.~~

We have an $8.0 committed bank facility related to a subsidiary. As of November 25, 2022, total availability under the facility was limited to $6.7 based on eligible accounts receivable of the subsidiary and $3.6 was outstanding under the facility.

We have unsecured uncommitted short-term credit facilities available for working capital purposes with various financial institutions with a total U.S. dollar borrowing capacity of up to ~~$3.8~~$3.7 and a total foreign currency borrowing capacity of up to ~~$6.1~~$18.1 as of November ~~25, 2022.~~24, 2023. These credit facilities have no stated expiration date but may be changed or canceled by the banks at any time. As of November ~~25, 2022,~~24, 2023, there were no borrowings outstanding under these facilities.

Total consolidated debt as of November ~~25, 2022~~24, 2023 was ~~$516.0. In addition to borrowings under our credit facilities, we have $445.4 in~~$446.1 which is made up of term notes due in 2029 with an effective interest rate of 5.6%~~, and a term loan with a balance of $32.8 as of November 25, 2022, which has a floating interest rate based on 30-day LIBOR plus 1.20% and is due in Q1 2024.~~. The term notes are unsecured, ~~and the term loan is secured by our two corporate aircraft. The term notes and the term loan~~ contain no financial covenants and are not cross-defaulted to our other debt facilities.

Liquidity Outlook

~~As of~~ ~~November 25, 2022, our total liquidity, which is comprised of~~Our material cash ~~and cash equivalents and the cash surrender value of COLI, aggregated~~requirements are subject to ~~$216.2.~~ fluctuation based on business requirements, economic volatility or investments in strategic initiatives. Our liquidity position, funds available from COLI and under our credit facilities and cash generated from future operations are expected to be sufficient to finance our known or foreseeable liquidity needs, including our material cash requirements. As of November 24, 2023, our total liquidity, which is comprised of cash and cash equivalents and the cash surrender value of COLI, aggregated to $424.6.

~~During~~As of Q3 ~~2023,~~2024, there ~~have been~~were no significant changes in the items that we ~~have~~ identified as our material committed cash requirements in our Annual Report on Form 10-K for the fiscal year ended February ~~25, 2022.~~24, 2023.

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We also have other planned material usages of cash which we consider discretionary. This includes plans for capital expenditures which are expected to total approximately ~~$50~~$55 to ~~$60~~$65 in ~~2023~~2024 compared to ~~$60.5~~$59.1 in ~~2022.~~2023. In addition, we fund dividend payments declared by our Board of Directors. On December 19, ~~2022,~~2023, we announced a quarterly dividend on our common stock of $0.10 per share, or approximately $11, to be paid in Q4 ~~2023.~~

In year-to-date 2023, we implemented initiatives to reduce operational spending across certain functions, including workforce reductions in our Americas segment in Q3 2023 which are expected to result in annualized savings of approximately $19, and we expect to maintain our focus on controlled spending during Q4 2023. In Q4 2023, we initiated actions to wind down our aviation department and sell our two corporate aircraft, and we expect to use the proceeds from the sale of the corporate aircraft to pay down our term loan which is due in Q1 2024. ~~We expect approximately $11 in annualized savings as a result of these actions.~~

Our material cash requirements are subject to fluctuation based on business requirements, economic volatility or investments in strategic initiatives. We anticipate the cash expected to be generated from future operations and current cash and cash equivalents, funds available under our credit facilities and funds available from COLI will be sufficient to fulfill our existing material cash requirements.

Critical Accounting Estimates

~~During~~As of Q3 ~~2023,~~2024, there have been no changes in the items that we have identified as critical accounting estimates in our Annual Report on Form 10-K for the fiscal year ended February ~~25, 2022.~~24, 2023.

Recently Issued Accounting Standards

See Note 2 to the condensed consolidated financial statements.

Forward-looking Statements

From time to time, in written and oral statements, we discuss our expectations regarding future events and our plans and objectives for future operations. These forward-looking statements discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to us, based on current beliefs of management as well as assumptions made by, and information currently available to, us. Forward-looking statements generally are accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “possible,” “potential,” “predict,” “project," "target” or other similar words, phrases or expressions. Although we believe these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements and vary from our expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters, pandemics and other Force Majeure events; cyberattacks; ~~the COVID-19 pandemic and the actions taken by various governments and third parties to combat the pandemic;~~ changes in the legal and regulatory environment; changes in raw 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 the market risks (i.e., the risk of loss arising from adverse changes in market rates and prices) we faced ~~by us~~ as of November ~~25, 2022 is the same as~~24, 2023 had not materially changed from what we disclosed in our Annual Report on Form 10-K for the fiscal year ended February ~~25, 2022.~~24, 2023. We are exposed to market risks from foreign currency exchange, interest rates, commodity prices and fixed income and equity prices, which could affect our operating results, financial position and cash flows.

Foreign Exchange Risk

During Q3 ~~2023,~~2024, no material change in foreign exchange risk occurred.

Interest Rate Risk

During Q3 ~~2023,~~2024, no material change in interest rate risk occurred.

~~Table of Contents~~

Commodity Price Risk

During Q3 ~~2023,~~2024, no material change in commodity price risk occurred.

Fixed Income and Equity Price Risk

During Q3 ~~2023,~~2024, no material change in fixed income and equity price risk occurred.

Table of Contents

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 November ~~25, 2022.~~24, 2023. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of November ~~25, 2022,~~24, 2023, 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 third fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~Table of Contents~~

PART II. OTHER INFORMATION

Item 1A. Risk Factors:

For a more detailed explanation of the risks affecting our business, please refer to the Risk Factors section in our Annual Report on Form 10-K for the fiscal year ended February ~~25, 2022.~~24, 2023. There have not been any material changes to the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended February ~~25, 2022.~~24, 2023.

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

Issuer Purchases of Equity Securities

The following is a summary of share repurchase activity during Q3 ~~2023:~~2024:

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)
8/27/2022 - 9/30/2022 — $ — — $ 6.4
10/1/2022 - 10/28/2022 45,358 $ 6.97 — $ 6.4
10/29/22 - 11/25/2022 18,826 $ 6.95 — $ 6.4
Total 64,184 (2) —


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)
08/26/2023 - 09/29/2023	14,359	$	8.91	—	$	6.4
09/30/2023 - 10/27/2023	68,358	$	11.24	—	$	106.4
10/28/2023 - 11/24/2023	—	$	—	—	$	106.4
Total	82,717	(2)		—

(1)In January 2016, the Board of Directors approved a share repurchase program, announced on January 19, 2016, permitting the repurchase of up to $150 of shares of our common stock. In October 2023, the Board of Directors approved a share repurchase program, announced on October 30, 2023, permitting the repurchase of up to $100 of shares of our common stock. On October 30, 2023, we entered into a stock repurchase agreement with an independent third party broker under which the broker is authorized to repurchase up to 2.0 million shares of our common stock on on our behalf during the period from October 31, 2023 through February 23, 2024, subject to certain price, market and volume constraints specified in the agreement. The agreement was established in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

(2)All 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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Table of Contents

Item 6.Exhibits:


Exhibit No.			Description

31.1			Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2			Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1			Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH			Inline XBRL Schema Document
101.CAL			Inline XBRL Calculation Linkbase Document
101.LAB			Inline XBRL Labels Linkbase Document
101.PRE			Inline XBRL Presentation Linkbase Document
101.DEF			Inline XBRL Definition Linkbase Document
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

________________

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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~~NICOLE C. ~~Sylvester~~MCGRATH
			~~David~~Nicole C. ~~Sylvester~~McGrath ~~Senior~~ Vice President, Corporate Controller & Chief ~~Financial~~Accounting Officer (Duly Authorized ~~Officer, Principal Financial~~ Officer and Principal Accounting Officer)

Date: December ~~21, 2022~~20, 2023

3532


Computation of Earnings Per Share	Nine Months Ended November 25, 2022						Nine Months Ended November 26, 2021
	Net Income		Basic Shares (in millions)		Diluted Shares (in millions)		Net Income		Basic Shares (in millions)		Diluted Shares (in millions)
Amounts used in calculating earnings per share	$	19.6	117.1		117.4		$	6.2	117.4		117.8
Impact of participating securities	(0.7)		(4.3)		(4.3)		(0.2)		(3.0)		(3.0)
Amounts used in calculating earnings per share, excluding participating securities	$	18.9	112.8		113.1		$	6.0	114.4		114.8

Earnings per share			$	0.17	$	0.17			$	0.05	$	0.05


	November 25, 2022
Fair Value of Financial Instruments	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	55.0	$	—	$	—	$	55.0
Restricted cash	6.7		—		—		6.7







Foreign exchange forward contracts	—		2.3		—		2.3
Auction rate security	—		—		2.5		2.5

	$	61.7	$	2.3	$	2.5	$	66.5
Liabilities:
Foreign exchange forward contracts	$	—	$	(0.1)	$	—	$	(0.1)
	$	—	$	(0.1)	$	—	$	(0.1)

	February 25, 2022
Fair Value of Financial Instruments	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	200.9	$	—	$	—	$	200.9
Restricted cash	6.1		—		—		6.1







Foreign exchange forward contracts	—		1.0		—		1.0
Auction rate security	—		—		2.6		2.6

	$	207.0	$	1.0	$	2.6	$	210.6
Liabilities:
Foreign exchange forward contracts	$	—	$	(0.3)	$	—	$	(0.3)
	$	—	$	(0.3)	$	—	$	(0.3)


	Three Months Ended				Nine Months Ended
Reportable Segment Statement of Operations Data	November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021
Revenue
Americas	$	594.7	$	500.3	$	1,767.1	$	1,399.9
EMEA	157.7		168.2		451.9		430.7
Other	74.5		69.7		211.9		189.0
	$	826.9	$	738.2	$	2,430.9	$	2,019.6
Operating income (loss)
Americas	$	21.2	$	11.1	$	63.5	$	40.8
EMEA	4.2		8.3		(1.3)		1.0
Other	(0.3)		2.0		(4.5)		(7.5)
Corporate	(4.6)		(5.5)		(20.9)		(16.3)
	$	20.5	$	15.9	$	36.8	$	18.0


	Workforce Reductions		Business Exit and Related Costs		Total
Balance as of February 25, 2022	$	—	$	—	$	—
Restructuring costs	12.4		2.4		14.8
Payments	(11.0)		(2.4)		(13.4)
Balance as of November 25, 2022	$	1.4	$	—	$	1.4


Q3 2023 Organic Revenue Growth	Americas			EMEA			Other			Consolidated
Q3 2022 revenue	$	500.3		$	168.2		$	69.7		$	738.2
Acquisitions	18.9			1.2			—			20.1

Currency translation effects	(1.7)			(24.7)			(3.0)			(29.4)
Q3 2022 revenue, adjusted	517.5			144.7			66.7			728.9
Q3 2023 revenue	594.7			157.7			74.5			826.9


Organic growth $	$	77.2		$	13.0		$	7.8		$	98.0
Organic growth %	15		%	9		%	12		%	13		%


	Three Months Ended								Nine Months Ended
Statement of Operations Data — EMEA	November 25, 2022				November 26, 2021				November 25, 2022				November 26, 2021
Revenue	$	157.7	100.0	%	$	168.2	100.0	%	$	451.9	100.0	%	$	430.7	100.0	%
Cost of sales	114.5		72.6		118.1		70.2		333.9		73.9		309.0		71.7

Gross profit	43.2		27.4		50.1		29.8		118.0		26.1		121.7		28.3
Operating expenses	39.0		24.7		41.8		24.9		119.3		26.4		120.7		28.1


Operating income (loss)	$	4.2	2.7	%	$	8.3	4.9	%	$	(1.3)	(0.3)	%	$	1.0	0.2	%


Adjusted Operating Income — EMEA	Three Months Ended								Nine Months Ended
	November 25, 2022				November 26, 2021				November 25, 2022				November 26, 2021
Operating income (loss)	$	4.2	2.7	%	$	8.3	4.9	%	$	(1.3)	(0.3)	%	$	1.0	0.2	%
Amortization of purchased intangible assets	1.1		0.7		1.0		0.6		3.4		0.8		3.0		0.7


Adjusted operating income	$	5.3	3.4	%	$	9.3	5.5	%	$	2.1	0.5	%	$	4.0	0.9	%


	Three Months Ended								Nine Months Ended
Statement of Operations Data — Other	November 25, 2022				November 26, 2021				November 25, 2022				November 26, 2021
Revenue	$	74.5	100.0	%	$	69.7	100.0	%	$	211.9	100.0	%	$	189.0	100.0	%
Cost of sales	51.1		68.6		46.2		66.3		146.5		69.1		130.1		68.8

Gross profit	23.4		31.4		23.5		33.7		65.4		30.9		58.9		31.2
Operating expenses	23.7		31.8		21.5		30.8		69.9		33.0		66.4		35.2


Operating income (loss)	$	(0.3)	(0.4)	%	$	2.0	2.9	%	$	(4.5)	(2.1)	%	$	(7.5)	(4.0)	%


	Three Months Ended				Nine Months Ended
Statement of Operations Data — Corporate	November 25, 2022		November 26, 2021		November 25, 2022		November 26, 2021
Operating expenses	$	4.6	$	5.5	$	20.9	$	16.3