Cover Page
Cover Page - shares | 3 Months Ended | |
May 29, 2020 | Feb. 26, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 29, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-13873 | |
Entity Registrant Name | STEELCASE INC | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-0819050 | |
Entity Address, Address Line One | 901 44th Street SE | |
Entity Address, City or Town | Grand Rapids, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49508 | |
City Area Code | 616 | |
Local Phone Number | 247-2710 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | SCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0001050825 | |
Current Fiscal Year End Date | --02-26 | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 88,043,415 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 26,730,075 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
Revenues | $ 482.8 | $ 824.3 |
Cost of sales | 360.1 | 565.9 |
Gross profit | 122.7 | 258.4 |
Operating expenses | 157.4 | 230.8 |
Goodwill, Impairment Loss | 17.6 | 0 |
Operating income | (52.3) | 27.6 |
Interest expense | (7.3) | (6.7) |
Investment income | 0.8 | 1 |
Other Nonoperating Income (Expense) | 4 | 2.2 |
Income before income tax expense | (54.8) | 24.1 |
Income Tax Expense (Benefit) | (16.7) | 6.3 |
Net income | $ (38.1) | $ 17.8 |
Earnings per share | ||
Basic | $ (0.33) | $ 0.15 |
Diluted | (0.33) | 0.15 |
Dividends declared and paid per common share | $ 0.070 | $ 0.145 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
Net income (loss) | $ (38.1) | $ 17.8 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | (0.2) | 0.1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0.3 | (0.2) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0.2 | 0.2 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (8.9) | (7.9) |
Other comprehensive income (loss) | (8.6) | (7.8) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (46.7) | $ 10 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | May 29, 2020 | Feb. 28, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 637.5 | $ 541 | |
Trade Accounts Receivable | 264.1 | 381.8 | |
Accounts Receivable, Allowance for Credit Loss | (9.4) | (9.4) | |
Inventories | 246.7 | 215 | |
Prepaid expense | 22.2 | 21.6 | |
Other current assets | 69.1 | 38.8 | |
Total current assets | 1,230.2 | 1,188.8 | |
Property, plant and equipment, net of accumulated depreciation of $993.1 and $977.7 | 417.2 | 426.3 | |
Company-owned life insurance | 161.5 | 160 | |
Deferred income taxes | 111.9 | 124.6 | |
Goodwill | 215.1 | 233.6 | |
Other intangible assets, net of accumulated amortization of $60.1 and $56.7 | 95.9 | 102.9 | |
Investments in unconsolidated affiliates | 53.5 | 52.3 | |
Operating Lease, Right-of-Use Asset | 224.4 | 237.9 | |
Other assets | 29.8 | 39 | |
Total assets | 2,539.5 | 2,565.4 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Accounts payable | 155.9 | 244.3 | |
Short-term borrowings and current maturities of long-term debt | 247.7 | 2.9 | |
Operating Lease, Liability, Current | 41.8 | 43.1 | |
Accrued expenses: | |||
Employee compensation | 62.6 | 191.7 | |
Employee benefit plan obligations | 23 | 44.7 | |
Accrued promotions | 26.2 | 35.3 | |
Customer deposits | 123.4 | 28.6 | |
Other | 109.5 | 100.3 | |
Total current liabilities | 790.1 | 690.9 | |
Long-term liabilities: | |||
Long-term debt less current maturities | 481.2 | 481.4 | |
Employee benefit plan obligations | 137.7 | 148.3 | |
Operating Lease, Liability, Noncurrent | 203.9 | 214 | |
Other long-term liabilities | 45.6 | 60.4 | |
Total long-term liabilities | 868.4 | 904.1 | |
Total liabilities | 1,658.5 | 1,595 | |
Shareholders' equity: | |||
Additional paid-in capital | [1] | 0 | 28.4 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (77.9) | (69.3) | |
Retained earnings | 958.9 | 1,011.3 | |
Total shareholders' equity | 881 | 970.4 | |
Total liabilities and shareholders' equity | $ 2,539.5 | $ 2,565.4 | |
[1] | Shares of our Class A and Class B common stock have no par value; thus, there are no balances for common stock. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | May 29, 2020 | Feb. 28, 2020 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 993.1 | $ 977.7 |
Other intangible assets, accumulated amortization | $ 60.1 | $ 56.7 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity Statement - USD ($) $ in Millions | Total | Performance Units [Member] | Restricted Stock [Member] | |
Other comprehensive income (loss) | $ (7.8) | |||
Retained earnings, beginning of period at Feb. 22, 2019 | 880.7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 17.8 | |||
Dividends paid | (17.3) | |||
Retained earnings, end of period at May. 24, 2019 | 881.2 | |||
Accumulated other comprehensive income (loss), beginning of period at Feb. 22, 2019 | (47.3) | |||
Accumulated Other Comprehensive Income (Loss), End of Period at May. 24, 2019 | (55.1) | |||
Paid-in capital, beginning of period at Feb. 22, 2019 | [1] | 16.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issuances | [1] | 0.2 | ||
Common stock repurchases | [1] | (4) | ||
Performance units and restricted stock units expense | 9.3 | |||
Other | [1] | 4 | ||
Paid-in capital, end of period at May. 24, 2019 | [1] | $ 25.9 | ||
Common shares outstanding, beginning of period at Feb. 22, 2019 | 116,766,610 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issuances | 11,397 | |||
Common stock repurchases | (229,303) | |||
Stock Issued During Period, Shares, New Issues | 0 | 765,051 | ||
Common shares outstanding, end of period at May. 24, 2019 | 117,313,755 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock Repurchased Retained Earnings, Value [Line Items] | $ 0 | |||
Stockholders' Equity Attributable to Parent | 852 | |||
Stockholders' Equity Attributable to Parent | 970.4 | |||
Other comprehensive income (loss) | (8.6) | |||
Retained earnings, beginning of period at Feb. 28, 2020 | 1,011.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (38.1) | |||
Dividends paid | (8.4) | |||
Retained earnings, end of period at May. 29, 2020 | 958.9 | |||
Accumulated other comprehensive income (loss), beginning of period at Feb. 28, 2020 | (69.3) | |||
Accumulated Other Comprehensive Income (Loss), End of Period at May. 29, 2020 | (77.9) | |||
Paid-in capital, beginning of period at Feb. 28, 2020 | [1] | 28.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issuances | [1] | 0.2 | ||
Common stock repurchases | [1] | (36.4) | ||
Performance units and restricted stock units expense | 7.8 | |||
Other | [1] | 0 | ||
Paid-in capital, end of period at May. 29, 2020 | [1] | $ 0 | ||
Common shares outstanding, beginning of period at Feb. 28, 2020 | 117,202,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issuances | 12,949 | |||
Common stock repurchases | (3,244,389) | |||
Stock Issued During Period, Shares, New Issues | 174,888 | 614,101 | ||
Common shares outstanding, end of period at May. 29, 2020 | 114,759,549 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock Repurchased Retained Earnings, Value [Line Items] | $ (5.9) | |||
Stockholders' Equity Attributable to Parent | $ 881 | |||
[1] | Shares of our Class A and Class B common stock have no par value; thus, there are no balances for common stock. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2020 | May 24, 2019 | ||
OPERATING ACTIVITIES | |||
Net income (loss) | $ (38.1) | $ 17.8 | |
Depreciation and amortization | 22.5 | 20.3 | |
Goodwill, Impairment Loss | 17.6 | 0 | |
Increase (Decrease) in Deferred Income Taxes | 12.4 | 0.5 | |
Non-cash stock compensation | 8 | 9.5 | |
Equity in income of unconsolidated affiliates | (1.8) | (2.5) | |
Dividends received from unconsolidated affiliates | 0.7 | 4.6 | |
Other | (2.8) | 0.7 | |
Changes in operating assets and liabilities net of acquisitions: | |||
Accounts receivable | 115.8 | (15) | |
Inventories | (32.8) | (17.7) | |
Other assets | (28) | 1.1 | |
Accounts payable | (87.8) | 23.2 | |
Employee compensation liabilities | (137.2) | (93.6) | |
Employee benefit obligations | (33.2) | (24.2) | |
Increase (Decrease) in Customer Advances and Deposits | 94.9 | 2.4 | |
Accrued Liabilities and Other Operating Liabilities | (3.6) | 1.9 | |
Net cash provided by operating activities | (93.4) | (71) | |
INVESTING ACTIVITIES | |||
Capital expenditures | (9.4) | (14.8) | |
Other | 6.7 | 1.1 | |
Net cash provided by (used in) investing activities | (2.7) | (13.7) | |
FINANCING ACTIVITIES | |||
Dividends paid | (8.4) | (17.3) | |
Common stock repurchases | (42.3) | (4) | |
Proceeds from Lines of Credit | 250 | 0 | |
Repayments of Lines of Credit | (5) | 0 | |
Proceeds from (Payments for) Other Financing Activities | (0.6) | (0.5) | |
Net cash used in financing activities | 193.7 | (21.8) | |
Effect of exchange rate changes on cash and cash equivalents | (1.3) | (0.7) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 96.3 | (107.2) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | [1] | 547.1 | 264.8 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | [2] | $ 643.4 | 157.6 |
Restricted Cash | $ 4.9 | ||
[1] | These amounts include restricted cash of $6.1 and $3.5 as of February 28, 2020 and February 22, 2019, respectively. | ||
[2] | These amounts include restricted cash of $5.9 and $4.9 as of May 29, 2020 and May 24, 2019, respectively. Restricted cash primarily represents funds held in escrow for potential future workers’ compensation and product liability claims . Restricted cash is included as part of Other assets in the Condensed Consolidated Balance Sheets. |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
May 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions in Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended February 28, 2020 (“Form 10-K”). The Condensed Consolidated Balance Sheet as of February 28, 2020 was derived from the audited Consolidated Balance Sheet included in our Form 10-K. As used in this Quarterly Report on Form 10-Q (“Report”), unless otherwise expressly stated or the context otherwise requires, all references to “Steelcase,” “we,” “our,” “Company” and similar references are to Steelcase Inc. and its subsidiaries in which a controlling interest is maintained. Unless the context otherwise indicates, reference to a year relates to the fiscal year, ended in February of the year indicated, rather than a calendar year. Additionally, Q1, Q2, Q3 and Q4 reference the first, second, third and fourth quarter, respectively, of the fiscal year indicated. All amounts are in millions, except share and per share data, data presented as a percentage or as otherwise indicated. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
May 29, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740) , which is intended to enhance various aspects of the accounting for income taxes. The new guidance updates the calculation of income taxes in an interim period when year-to-date losses exceed the anticipated loss for the year. We adopted this guidance in Q1 2021 on a prospective basis. The adoption of this guidance did not have a material effect on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) , which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. We adopted this guidance in Q1 2021 using a modified retrospective transition approach. The adoption of this guidance did not have a material effect on our consolidated financial statements. We estimate our allowance for doubtful accounts based upon several factors, including customer credit quality and historical write-off trends. We also use general information regarding industry trends, the economic environment and information gathered through our network of field-based employees. The adoption of this guidance did not significantly impact our accounting policies or methods utilized to determine the allowance for doubtful accounts. Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General . The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit costs over the next fiscal year and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amended guidance is effective for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but is not expected to have a material effect on our consolidated financial statements. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
May 29, 2020 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE Disaggregation of Revenue The following table provides information about disaggregated revenue by product category for each of our reportable segments: Product Category Data Three Months Ended May 29, May 24, Americas Desking, benching, systems and storage $ 168.4 $ 310.8 Seating 96.5 171.7 Other (1) 69.0 93.8 EMEA Desking, benching, systems and storage 43.9 62.0 Seating 31.0 60.0 Other (1) 24.6 39.3 Other Desking, benching, systems and storage 10.7 14.5 Seating 12.2 19.5 Other (1) 26.5 52.7 $ 482.8 $ 824.3 _______________________________________ (1) The Other product category data by segment consists primarily of products sold by consolidated dealers, textiles and surface materials, worktools, architecture, technology, other uncategorized product lines and services. Reportable geographic information is as follows: Reportable Geographic Revenue Three Months Ended May 29, May 24, United States $ 323.5 $ 535.9 Foreign locations 159.3 288.4 $ 482.8 $ 824.3 Contract Balances At times, we receive payments from customers before revenue is recognized, resulting in the recognition of a contract liability ( Customer deposits ) presented in the Condensed Consolidated Balance Sheets. Changes in the Customer deposits balance during the three months ended May 29, 2020 are as follows: Customer Deposits Balance as of February 28, 2020 $ 28.6 Increases due to deposits received 107.4 Revenue recognized (12.6) Balance as of May 29, 2020 $ 123.4 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 29, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS (LOSS) PER SHARE Earnings (loss) per share is computed using the two-class method. The two-class method determines earnings (loss) per share for each class of common stock and participating securities according to dividends or dividend equivalents and their respective participation rights in undistributed earnings. Participating securities represent restricted stock units in which the participants have non-forfeitable rights to dividend equivalents during the performance period. Diluted earnings (loss) per share includes the effects of certain performance units in which the participants have forfeitable rights to dividend equivalents during the performance period. Three Months Ended Computation of Earnings (Loss) per Share May 29, May 24, Net income (loss) $ (38.1) $ 17.8 Adjustment for earnings (loss) attributable to participating securities 0.7 (0.3) Net income (loss) used in calculating earnings (loss) per share $ (37.4) $ 17.5 Weighted-average common shares outstanding including participating securities (in millions) 117.3 119.4 Adjustment for participating securities (in millions) (2.2) (2.1) Shares used in calculating basic earnings (loss) per share (in millions) 115.1 117.3 Effect of dilutive stock-based compensation (in millions) — 0.5 Shares used in calculating diluted earnings (loss) per share (in millions) 115.1 117.8 Earnings (loss) per share: Basic $ (0.33) $ 0.15 Diluted $ (0.33) $ 0.15 Total common shares outstanding at period end (in millions) 114.8 117.3 Anti-dilutive performance units excluded from the computation of diluted earnings (loss) per share (in millions) 0.3 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
May 29, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended May 29, 2020: Unrealized gain (loss) on investments Pension and other post-retirement liability adjustments Derivative amortization Foreign currency translation adjustments Total Balance as of February 28, 2020 $ (0.1) $ (3.1) $ (8.6) $ (57.5) $ (69.3) Other comprehensive income (loss) before reclassifications (0.2) 0.5 — (8.9) (8.6) Amounts reclassified from accumulated other comprehensive income (loss) — (0.2) 0.2 — — Net current period other comprehensive income (loss) (0.2) 0.3 0.2 (8.9) (8.6) Balance as of May 29, 2020 $ (0.3) $ (2.8) $ (8.4) $ (66.4) $ (77.9) The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the three months ended May 29, 2020 and May 24, 2019: Detail of Accumulated Other Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line in the Condensed Consolidated Statements of Income Three Months Ended May 29, May 24, Amortization of pension and other post-retirement liability adjustments Actuarial losses (gains) $ (0.3) $ (0.7) Other income, net 0.1 0.2 Income tax expense (benefit) (0.2) (0.5) Derivative amortization 0.3 0.3 Interest expense (0.1) (0.1) Income tax expense (benefit) 0.2 0.2 Total reclassifications $ — $ (0.3) |
Fair Value
Fair Value | 3 Months Ended |
May 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE The carrying amounts for many of our financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts and notes payable, short-term borrowings and certain other liabilities, approximate their fair value due to their relatively short maturities. Our foreign exchange forward contracts and long-term investments are measured at fair value in the Condensed Consolidated Balance Sheets. Our total debt is carried at cost and was $728.9 and $484.3 as of May 29, 2020 and February 28, 2020, respectively. The fair value of our total debt is measured using a discounted cash flow analysis based on current market interest rates for similar types of instruments and was approximately $753 and $560 as of May 29, 2020 and February 28, 2020, respectively. The estimation of the fair value of our total debt is based on Level 2 fair value measurements. We periodically use derivative financial instruments to manage exposures to movements in foreign exchange rates and interest rates. The use of these financial instruments modifies the exposure of these risks with the intention to reduce our risk of short-term volatility. We do not use derivatives for speculative or trading purposes. Assets and liabilities measured at fair value as of May 29, 2020 and February 28, 2020 are summarized below: May 29, 2020 Fair Value of Financial Instruments Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 637.5 $ — $ — $ 637.5 Restricted cash 5.9 — — 5.9 Foreign exchange forward contracts — 1.2 — 1.2 Auction rate securities — — 1.9 1.9 $ 643.4 $ 1.2 $ 1.9 $ 646.5 Liabilities: Foreign exchange forward contracts $ — $ (1.5) $ — $ (1.5) $ — $ (1.5) $ — $ (1.5) February 28, 2020 Fair Value of Financial Instruments Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 541.0 $ — $ — $ 541.0 Restricted cash 6.1 — — 6.1 Foreign exchange forward contracts — 1.2 — 1.2 Auction rate securities — — 2.1 2.1 $ 547.1 $ 1.2 $ 2.1 $ 550.4 Liabilities: Foreign exchange forward contracts $ — $ (0.5) $ — $ (0.5) $ — $ (0.5) $ — $ (0.5) Below is a roll-forward of assets and liabilities measured at fair value using Level 3 inputs for the three months ended May 29, 2020: Roll-Forward of Fair Value Using Level 3 Inputs Auction Rate Securities Balance as of February 28, 2020 $ 2.1 Unrealized loss on investments (0.2) Balance as of May 29, 2020 $ 1.9 |
Inventories
Inventories | 3 Months Ended |
May 29, 2020 | |
Inventories [Abstract] | |
Inventories | INVENTORIES Inventories May 29, February 28, Raw materials and work-in-process $ 136.9 $ 122.0 Finished goods 130.3 112.8 267.2 234.8 Revaluation to LIFO 20.5 19.8 $ 246.7 $ 215.0 The portion of inventories determined by the LIFO method was $109.0 and $93.8 as of May 29, 2020 and February 28, 2020, respectively. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other | 3 Months Ended |
May 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure | GOODWILL A summary of the changes in goodwill balances during the three months ended May 29, 2020, by reportable segment, are as follows: Goodwill Americas EMEA Other Total Goodwill $ 206.1 $ 283.5 $ 47.9 $ 537.5 Accumulated impairment losses (1.7) (265.0) (37.2) (303.9) Balance as of February 28, 2020 204.4 18.5 10.7 233.6 Impairment charge (1) — (17.6) — (17.6) Currency translation adjustments — (0.9) — (0.9) Goodwill 206.1 282.6 47.9 536.6 Accumulated impairment losses (1.7) (282.6) (37.2) (321.5) Balance as of May 29, 2020 $ 204.4 $ — $ 10.7 $ 215.1 _______________________________________ (1) In Q1 2021, we recorded a goodwill impairment charge in the EMEA segment related to the Orangebox U.K. reporting unit. We evaluate goodwill for impairment annually in Q4, or earlier if conditions indicate it is necessary. In Q1 2021, we determined that a triggering event occurred which resulted in an interim impairment evaluation of goodwill for each of our reporting units. During Q1 2021, the market price of our Class A Common Stock declined significantly in connection with overall stock market trends related to the global economic impact of the COVID-19 pandemic. The reduction in revenue in Q1 2021 and changes to our forecasted revenue growth rates and expected operating margins related to the economic disruption of the COVID-19 pandemic were also factors that led to the completion of our interim impairment analysis. For goodwill, we compare the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value, goodwill is not impaired, and no further testing is required. If the fair value of the reporting unit is less than the carrying value, the difference is recorded as an impairment loss. We estimate the fair value of our reporting units using the income approach, which calculates the fair value of each reporting unit based on the present value of its estimated cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. For the evaluation that we conducted in Q1 2021, such conditions included the deterioration of industry and market conditions driven by the COVID-19 pandemic. The discount rates used are based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting units' ability to execute on the projected cash flows. In certain circumstances, we corroborate the results determined using the income approach with a market-based approach that uses observable comparable company information to support the appropriateness of the fair value estimates. |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt (Notes) | 3 Months Ended |
May 29, 2020 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Short-term Debt [Text Block] | SHORT-TERM BORROWINGS Our $250.0 committed unsecured revolving syndicated credit facility expires in 2025. At our option, and subject to certain conditions, we may increase the aggregate commitment under the facility by up to $125.0 by obtaining at least one commitment from one or more lenders. During Q1 2021, we borrowed $250.0 under the facility and repaid $5.0. As of May 29, 2020, our total borrowings under the facility were $245.0 and had an effective interest rate of 1.07%. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
May 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES In Q1 2021, the U.S. government enacted tax legislation to provide economic stimulus and support to businesses during the COVID-19 pandemic, referred to as the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). In connection with our initial analysis of the impact of the CARES Act in Q1 2021, we recorded net tax benefits of $10.0, driven primarily by provisions within the CARES Act which enable companies to carry back tax losses to years prior to the enactment of the Tax Cuts and Jobs Act when the federal statutory income tax rate was 35%. We have historically calculated the provision for income tax expense (benefit) during interim periods by applying an estimate of the annualized effective income tax rate for the full fiscal year to the pre-tax income (loss) for the year-to-date period. In Q1 2021, we utilized the year-to-date actual effective income tax rate to calculate our income tax expense (benefit) as we determined that it was the most reliable estimate of the annual effective tax rate. We also adjusted certain net deferred tax assets utilizing the year-to-date calculation and taking into consideration benefits under the CARES Act. The effective income ta x rate for Q1 2021 was a benefit of 30.5% compared to an effective income tax rate of 26.1% in Q1 2020. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
May 29, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement | SHARE-BASED COMPENSATION Performance Units I n Q1 2021, we issued two sets of performance units (“PSUs”) to certain employees. The first set, consisting of 303,973 PSUs, will be earned at the end of 2021 (the “2021 Short-Term PSUs”), and the second set, consisting of 529,500 PSUs, will be earned over a three-year performance period of 2021 through 2023 (the “2021 Long-Term PSUs”). The 2021 Short-Term PSUs will be earned based on our Compensation Committee’s qualitative assessment of management’s performance in 2021 in a number of specified areas (collectively, the “2021 Performance Measures”). The 2021 Long-Term PSUs will be earned based on achievement of certain performance conditions and then modified based on achievement of certain total shareholder return results relative to a comparison group of companies. The performance conditions for the 2021 Long-Term PSUs consist of the 2021 Performance Measures and performance conditions for 2022 and 2023 which will be established by the Compensation Committee in future periods. Due to the qualitative assessment, these awards are not considered granted under GAAP. When the Compensation Committee determines whether or not the 2021 Performance Measures have been met, the 2021 Short-Term PSUs and one-third of the 2021 Long-Term PSUs will be considered granted. Once granted, the expense for these awards will be determined based on the target achieved and the fair value of the market condition on the grant date. The expense will be recorded in Additional paid-in capital on the Consolidated Balance Sheets over the remaining performance period, if any. In Q1 2020, we issued 296,600 PSUs to certain employees which will be earned over a three-year performance period of 2020 through 2022 (the “2020 Long-Term PSUs”). The 2020 Long-Term PSUs will be earned based on achievement of certain performance conditions and then modified based on achievement of certain total shareholder return results relative to a comparison group of companies. The performance conditions for the first year of the performance period were established in Q1 2020, and accordingly, 98,867 of the 2020 Long-Term PSUs were considered granted in Q1 2020. The 2021 Performance Measures have been established as the performance conditions for the second year of the performance period of the 2020 Long-Term PSUs, and accordingly, no additional portion of such awards have been considered granted. When the Compensation Committee determines whether or not the 2021 Performance Measures have been met, an additional one-third of these awards will be considered granted. Once granted, the expense for these awards will be determined based on the target achieved and the fair value of the market condition on the grant date. The expense will be recorded in Additional paid-in capital on the Consolidated Balance Sheets over the remaining performance period. The performance conditions for 2022 for these awards will be established by the Compensation Committee in future periods. The total PSU expense and associated tax benefit for all outstanding awards for the three months ended May 29, 2020 and May 24, 2019 are as follows: Three Months Ended Performance Units May 29, May 24, Expense $ 0.2 $ 1.4 Tax benefit 0.1 0.4 As of May 29, 2020, there was $0.4 of remaining unrecognized compensation cost related to nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of 1.4 years. There were no PSU grants, vestings or forfeitures for the three months ended May 29, 2020. Restricted Stock Units During the three months ended May 29, 2020, we awarded 1,131,700 restricted stock units ("RSUs"). RSUs have restrictions on transfer which lapse three years after the date of grant, at which time the RSUs will be issued as unrestricted shares of Class A Common Stock. RSUs are expensed and recorded in Additional paid-in capital on the Condensed Consolidated Balance Sheets over the requisite service period based on the value of the shares on the date of grant. The total RSU expense and associated tax benefit for all outstanding awards for the three months ended May 29, 2020 and May 24, 2019 are as follows: Three Months Ended Restricted Stock Units May 29, May 24, Expense $ 7.6 $ 7.9 Tax benefit 2.3 2.1 As of May 29, 2020, there was $8.8 of remaining unrecognized compensation cost related to nonvested RSUs, which is expected to be recognized over a weighted-average period of 2.0 years. The RSU activity for the three months ended May 29, 2020 is as follows: Nonvested Units Total Weighted-Average Nonvested as of February 28, 2020 1,761,124 $ 15.28 Granted 1,131,700 9.03 Vested (7,250) 16.44 Forfeited (33,624) 14.57 Nonvested as of May 29, 2020 2,851,950 $ 12.81 |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
May 29, 2020 | |
Lessee, Lease, Description [Line Items] | |
Leases of Lessee Disclosure [Text Block] | LEASES We have operating leases for corporate offices, sales offices, showrooms, manufacturing facilities, vehicles and equipment that expire at various dates through 2031. Certain lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours used) and others include rental payments adjusted periodically for inflationary indexes. Additionally, some leases include options to renew or terminate the leases which can be exercised at our discretion. The lease terms utilized in determining right-of-use assets and lease liabilities include the noncancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. Our leases do not contain any residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit discount rate, we use an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The estimated incremental borrowing rate represents the estimated rate of interest we would have had to pay to borrow on a collateralized basis an amount equal to the lease payments for a similar period of time. As a result of the COVID-19 pandemic, the FASB staff issued a question and answer document (the "Staff Q&A") on the application of lease accounting guidance related to lease concessions provided as a result of the pandemic. The Staff Q&A provides interpretive guidance allowing companies the option to account for lease concessions related to the pandemic consistent with how those concessions would be accounted for under ASU 2016-02, Leases (Topic 842) , as though enforceable rights and obligations for those concessions existed at the beginning of the contract (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). This interpretive guidance was issued in order to reduce the costs and complexities of applying lease modification accounting under Topic 842 to leases impacted by the effects of the pandemic. We have elected to apply the interpretive guidance provided in the Staff Q&A to rent deferrals or abatements received related to the pandemic. Accordingly, we have not remeasured the related right-of-use asset or lease liability for the affected leases. The lease concessions were not material for the three months ended May 29, 2020. The components of lease expense are as follows: Three Months Ended Three Months Ended May 29, May 24, Operating lease cost $ 13.1 $ 12.1 Sublease rental income (0.3) (0.1) $ 12.8 $ 12.0 Supplemental cash flow and other information related to leases are as follows: Three Months Ended Three Months Ended May 29, May 24, Cash flow information: Operating cash flows used for operating leases $ 12.6 $ 11.9 Leased assets obtained in exchange for new operating lease obligations $ 0.5 $ 39.6 Three Months Ended Three Months Ended May 29, May 24, Other information: Weighted-average remaining term 7.0 years 7.4 years Weighted-average discount rate 4.0 % 4.3 % The following table summarizes the future minimum lease payments as of May 29, 2020: Fiscal year ending in February Amount (1) 2021 $ 37.3 2022 47.2 2023 40.5 2024 35.1 2025 32.8 Thereafter 89.8 Total lease payments 282.7 Less interest 37.0 Present value of lease liabilities $ 245.7 _______________________________________ (1) Lease payments include |
Reportable Segments
Reportable Segments | 3 Months Ended |
May 29, 2020 | |
Reportable Segments [Abstract] | |
Reportable Segments | REPORTABLE SEGMENTS Our reportable segments consist of the Americas segment, the EMEA segment and the Other category. Unallocated corporate costs are reported as Corporate. The Americas segment serves customers in the U.S., Canada, the Caribbean Islands and Latin America with a portfolio of integrated architecture, furniture and technology products marketed to corporate, government, healthcare, education and retail customers through the Steelcase, Coalesse, Smith System, AMQ, Turnstone, and Orangebox brands. The EMEA segment serves customers in Europe, the Middle East and Africa primarily under the Steelcase, Orangebox and Coalesse brands, with an emphasis on freestanding furniture systems, storage and seating solutions. The Other category includes Asia Pacific and Designtex. Asia Pacific serves customers in Asia and Australia primarily under the Steelcase brand with an emphasis on freestanding furniture systems, seating and storage solutions. Designtex primarily sells textiles, wall coverings and surface imaging solutions specified by architects and designers directly to end-use customers through a direct sales force primarily in North America. In Q1 2020, the Other category also included PolyVision which was sold during Q4 2020. We primarily review and evaluate operating income by segment in both our internal review processes and for our external financial reporting. We also allocate resources primarily based on operating income. Total assets by segment include manufacturing and other assets associated with each segment. Corporate costs include unallocated portions of shared service functions such as information technology, corporate facilities, finance, research, human resources, legal and customer aviation, plus deferred compensation expense and income or losses associated with COLI. Corporate assets consist primarily of unallocated cash and cash equivalents, COLI balances and right-of-use assets related to operating leases. Revenue and operating income (loss) for the three months ended May 29, 2020 and May 24, 2019 and total assets as of May 29, 2020 and February 28, 2020 by segment are presented below: Three Months Ended Reportable Segment Statement of Operations Data May 29, May 24, Revenue Americas $ 333.9 $ 576.3 EMEA 99.5 161.3 Other 49.4 86.7 $ 482.8 $ 824.3 Operating income (loss) Americas $ (23.5) $ 32.4 EMEA (24.6) 0.8 Other (1.6) 2.3 Corporate (2.6) (7.9) $ (52.3) $ 27.6 Reportable Segment Balance Sheet Data May 29, February 28, Total assets Americas $ 1,085.2 $ 1,067.3 EMEA 387.9 454.5 Other 203.8 225.6 Corporate 862.6 818.0 $ 2,539.5 $ 2,565.4 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
May 29, 2020 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table provides information about disaggregated revenue by product category for each of our reportable segments: Product Category Data Three Months Ended May 29, May 24, Americas Desking, benching, systems and storage $ 168.4 $ 310.8 Seating 96.5 171.7 Other (1) 69.0 93.8 EMEA Desking, benching, systems and storage 43.9 62.0 Seating 31.0 60.0 Other (1) 24.6 39.3 Other Desking, benching, systems and storage 10.7 14.5 Seating 12.2 19.5 Other (1) 26.5 52.7 $ 482.8 $ 824.3 _______________________________________ (1) The Other product category data by segment consists primarily of products sold by consolidated dealers, textiles and surface materials, worktools, architecture, technology, other uncategorized product lines and services. Reportable geographic information is as follows: Reportable Geographic Revenue Three Months Ended May 29, May 24, United States $ 323.5 $ 535.9 Foreign locations 159.3 288.4 $ 482.8 $ 824.3 |
Contract with Customer, changes in customer deposits | Changes in the Customer deposits balance during the three months ended May 29, 2020 are as follows: Customer Deposits Balance as of February 28, 2020 $ 28.6 Increases due to deposits received 107.4 Revenue recognized (12.6) Balance as of May 29, 2020 $ 123.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 29, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Computation of Earnings (Loss) per Share May 29, May 24, Net income (loss) $ (38.1) $ 17.8 Adjustment for earnings (loss) attributable to participating securities 0.7 (0.3) Net income (loss) used in calculating earnings (loss) per share $ (37.4) $ 17.5 Weighted-average common shares outstanding including participating securities (in millions) 117.3 119.4 Adjustment for participating securities (in millions) (2.2) (2.1) Shares used in calculating basic earnings (loss) per share (in millions) 115.1 117.3 Effect of dilutive stock-based compensation (in millions) — 0.5 Shares used in calculating diluted earnings (loss) per share (in millions) 115.1 117.8 Earnings (loss) per share: Basic $ (0.33) $ 0.15 Diluted $ (0.33) $ 0.15 Total common shares outstanding at period end (in millions) 114.8 117.3 Anti-dilutive performance units excluded from the computation of diluted earnings (loss) per share (in millions) 0.3 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
May 29, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended May 29, 2020: Unrealized gain (loss) on investments Pension and other post-retirement liability adjustments Derivative amortization Foreign currency translation adjustments Total Balance as of February 28, 2020 $ (0.1) $ (3.1) $ (8.6) $ (57.5) $ (69.3) Other comprehensive income (loss) before reclassifications (0.2) 0.5 — (8.9) (8.6) Amounts reclassified from accumulated other comprehensive income (loss) — (0.2) 0.2 — — Net current period other comprehensive income (loss) (0.2) 0.3 0.2 (8.9) (8.6) Balance as of May 29, 2020 $ (0.3) $ (2.8) $ (8.4) $ (66.4) $ (77.9) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides details about reclassifications out of accumulated other comprehensive income (loss) for the three months ended May 29, 2020 and May 24, 2019: Detail of Accumulated Other Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line in the Condensed Consolidated Statements of Income Three Months Ended May 29, May 24, Amortization of pension and other post-retirement liability adjustments Actuarial losses (gains) $ (0.3) $ (0.7) Other income, net 0.1 0.2 Income tax expense (benefit) (0.2) (0.5) Derivative amortization 0.3 0.3 Interest expense (0.1) (0.1) Income tax expense (benefit) 0.2 0.2 Total reclassifications $ — $ (0.3) |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
May 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value as of May 29, 2020 and February 28, 2020 are summarized below: May 29, 2020 Fair Value of Financial Instruments Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 637.5 $ — $ — $ 637.5 Restricted cash 5.9 — — 5.9 Foreign exchange forward contracts — 1.2 — 1.2 Auction rate securities — — 1.9 1.9 $ 643.4 $ 1.2 $ 1.9 $ 646.5 Liabilities: Foreign exchange forward contracts $ — $ (1.5) $ — $ (1.5) $ — $ (1.5) $ — $ (1.5) February 28, 2020 Fair Value of Financial Instruments Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 541.0 $ — $ — $ 541.0 Restricted cash 6.1 — — 6.1 Foreign exchange forward contracts — 1.2 — 1.2 Auction rate securities — — 2.1 2.1 $ 547.1 $ 1.2 $ 2.1 $ 550.4 Liabilities: Foreign exchange forward contracts $ — $ (0.5) $ — $ (0.5) $ — $ (0.5) $ — $ (0.5) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Below is a roll-forward of assets and liabilities measured at fair value using Level 3 inputs for the three months ended May 29, 2020: Roll-Forward of Fair Value Using Level 3 Inputs Auction Rate Securities Balance as of February 28, 2020 $ 2.1 Unrealized loss on investments (0.2) Balance as of May 29, 2020 $ 1.9 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 29, 2020 | |
Inventories [Abstract] | |
Schedule of Inventory | Inventories May 29, February 28, Raw materials and work-in-process $ 136.9 $ 122.0 Finished goods 130.3 112.8 267.2 234.8 Revaluation to LIFO 20.5 19.8 $ 246.7 $ 215.0 |
Intangible Assets, Goodwill a_2
Intangible Assets, Goodwill and Other (Tables) | 3 Months Ended |
May 29, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
May 29, 2020 | |
Performance Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Compensation Costs by Plan for Share-based Payment Arrangements | The total PSU expense and associated tax benefit for all outstanding awards for the three months ended May 29, 2020 and May 24, 2019 are as follows: Three Months Ended Performance Units May 29, May 24, Expense $ 0.2 $ 1.4 Tax benefit 0.1 0.4 |
Schedule of Performance Unit Awards Activity | There were no PSU grants, vestings or forfeitures for the three months ended May 29, 2020. |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Compensation Costs by Plan for Share-based Payment Arrangements | The total RSU expense and associated tax benefit for all outstanding awards for the three months ended May 29, 2020 and May 24, 2019 are as follows: Three Months Ended Restricted Stock Units May 29, May 24, Expense $ 7.6 $ 7.9 Tax benefit 2.3 2.1 |
Schedule of Restricted Stock Unit Awards Activity | The RSU activity for the three months ended May 29, 2020 is as follows: Nonvested Units Total Weighted-Average Nonvested as of February 28, 2020 1,761,124 $ 15.28 Granted 1,131,700 9.03 Vested (7,250) 16.44 Forfeited (33,624) 14.57 Nonvested as of May 29, 2020 2,851,950 $ 12.81 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 29, 2020 | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the future minimum lease payments as of May 29, 2020: Fiscal year ending in February Amount (1) 2021 $ 37.3 2022 47.2 2023 40.5 2024 35.1 2025 32.8 Thereafter 89.8 Total lease payments 282.7 Less interest 37.0 Present value of lease liabilities $ 245.7 _______________________________________ (1) Lease payments include |
Lease, Cost [Table Text Block] | The components of lease expense are as follows: Three Months Ended Three Months Ended May 29, May 24, Operating lease cost $ 13.1 $ 12.1 Sublease rental income (0.3) (0.1) $ 12.8 $ 12.0 |
Leases Cash Flow and Other (Tab
Leases Cash Flow and Other (Tables) | 3 Months Ended |
May 29, 2020 | |
Lessee, Lease, Description [Line Items] | |
Lessee, lease, supplemental cash flow and other information [Table Text Block] | Three Months Ended Three Months Ended May 29, May 24, Other information: Weighted-average remaining term 7.0 years 7.4 years Weighted-average discount rate 4.0 % 4.3 % |
Leases of Lessee Disclosure [Text Block] | LEASES We have operating leases for corporate offices, sales offices, showrooms, manufacturing facilities, vehicles and equipment that expire at various dates through 2031. Certain lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours used) and others include rental payments adjusted periodically for inflationary indexes. Additionally, some leases include options to renew or terminate the leases which can be exercised at our discretion. The lease terms utilized in determining right-of-use assets and lease liabilities include the noncancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. Our leases do not contain any residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit discount rate, we use an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The estimated incremental borrowing rate represents the estimated rate of interest we would have had to pay to borrow on a collateralized basis an amount equal to the lease payments for a similar period of time. As a result of the COVID-19 pandemic, the FASB staff issued a question and answer document (the "Staff Q&A") on the application of lease accounting guidance related to lease concessions provided as a result of the pandemic. The Staff Q&A provides interpretive guidance allowing companies the option to account for lease concessions related to the pandemic consistent with how those concessions would be accounted for under ASU 2016-02, Leases (Topic 842) , as though enforceable rights and obligations for those concessions existed at the beginning of the contract (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). This interpretive guidance was issued in order to reduce the costs and complexities of applying lease modification accounting under Topic 842 to leases impacted by the effects of the pandemic. We have elected to apply the interpretive guidance provided in the Staff Q&A to rent deferrals or abatements received related to the pandemic. Accordingly, we have not remeasured the related right-of-use asset or lease liability for the affected leases. The lease concessions were not material for the three months ended May 29, 2020. The components of lease expense are as follows: Three Months Ended Three Months Ended May 29, May 24, Operating lease cost $ 13.1 $ 12.1 Sublease rental income (0.3) (0.1) $ 12.8 $ 12.0 Supplemental cash flow and other information related to leases are as follows: Three Months Ended Three Months Ended May 29, May 24, Cash flow information: Operating cash flows used for operating leases $ 12.6 $ 11.9 Leased assets obtained in exchange for new operating lease obligations $ 0.5 $ 39.6 Three Months Ended Three Months Ended May 29, May 24, Other information: Weighted-average remaining term 7.0 years 7.4 years Weighted-average discount rate 4.0 % 4.3 % The following table summarizes the future minimum lease payments as of May 29, 2020: Fiscal year ending in February Amount (1) 2021 $ 37.3 2022 47.2 2023 40.5 2024 35.1 2025 32.8 Thereafter 89.8 Total lease payments 282.7 Less interest 37.0 Present value of lease liabilities $ 245.7 _______________________________________ (1) Lease payments include |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
May 29, 2020 | |
Reportable Segments [Abstract] | |
Schedule of Segment Reporting Information | Revenue and operating income (loss) for the three months ended May 29, 2020 and May 24, 2019 and total assets as of May 29, 2020 and February 28, 2020 by segment are presented below: Three Months Ended Reportable Segment Statement of Operations Data May 29, May 24, Revenue Americas $ 333.9 $ 576.3 EMEA 99.5 161.3 Other 49.4 86.7 $ 482.8 $ 824.3 Operating income (loss) Americas $ (23.5) $ 32.4 EMEA (24.6) 0.8 Other (1.6) 2.3 Corporate (2.6) (7.9) $ (52.3) $ 27.6 Reportable Segment Balance Sheet Data May 29, February 28, Total assets Americas $ 1,085.2 $ 1,067.3 EMEA 387.9 454.5 Other 203.8 225.6 Corporate 862.6 818.0 $ 2,539.5 $ 2,565.4 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2020 | May 24, 2019 | ||
Revenues | $ 482.8 | $ 824.3 | |
Contract with Customer, Liability | 28.6 | ||
Contract with Customer, Liability | 123.4 | ||
Americas [Member] | |||
Revenues | 333.9 | 576.3 | |
EMEA [Member] | |||
Revenues | 99.5 | 161.3 | |
Other category [Member] | |||
Revenues | 49.4 | 86.7 | |
UNITED STATES | |||
Revenues | 323.5 | 535.9 | |
Foreign locations [Member] | |||
Revenues | 159.3 | 288.4 | |
Systems and storage [Member] | Americas [Member] | |||
Revenues | 168.4 | 310.8 | |
Systems and storage [Member] | EMEA [Member] | |||
Revenues | 43.9 | 62 | |
Systems and storage [Member] | Other category [Member] | |||
Revenues | 10.7 | 14.5 | |
Seating [Member] | Americas [Member] | |||
Revenues | 96.5 | 171.7 | |
Seating [Member] | EMEA [Member] | |||
Revenues | 31 | 60 | |
Seating [Member] | Other category [Member] | |||
Revenues | 12.2 | 19.5 | |
Other Product Category [Member] | Americas [Member] | |||
Revenues | [1] | 69 | 93.8 |
Other Product Category [Member] | EMEA [Member] | |||
Revenues | [1] | 24.6 | 39.3 |
Other Product Category [Member] | Other category [Member] | |||
Revenues | [1] | 26.5 | $ 52.7 |
Deposits [Member] | |||
contract with customer, increases in liability due to deposits received | 107.4 | ||
Contract with Customer, Liability, Revenue Recognized | $ (12.6) | ||
[1] | The Other product category data by segment consists primarily of products sold by consolidated dealers, textiles and surface materials, worktools, architecture, technology, other uncategorized product lines and services. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
May 29, 2020 | May 24, 2019 | Feb. 28, 2020 | Feb. 22, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (38.1) | $ 17.8 | ||
Adjustment for earnings attributable to participating securities | 0.7 | (0.3) | ||
Net income used in calculating earnings per share | $ (37.4) | $ 17.5 | ||
Weighted-average common shares outstanding including participating securities (in millions) | 117,300,000 | 119,400,000 | ||
Adjustment for participating securities (in millions) | (2,200,000) | (2,100,000) | ||
Shares used in calculating basic earnings per share (in millions) | 115,100,000 | 117,300,000 | ||
Effect of dilutive stock-based compensation (in millions) | 0 | 500,000 | ||
Shares used in calculating diluted earnings per share (in millions) | 115,100,000 | 117,800,000 | ||
Earnings per share, basic | $ (0.33) | $ 0.15 | ||
Earnings per share, diluted | $ (0.33) | $ 0.15 | ||
Common Stock, Shares, Outstanding | 114,759,549 | 117,313,755 | 117,202,000 | 116,766,610 |
Anti-dilutive performance units excluded from computation of diluted earnings per share (in millions) | 300,000 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | $ (69.3) | $ (47.3) |
Other comprehensive income (loss) before reclassifications | (8.6) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8.6) | |
Accumulated Other Comprehensive Income (Loss), End of Period | (77.9) | $ (55.1) |
Unrealized gain (loss) on investments [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | (0.1) | |
Other comprehensive income (loss) before reclassifications | (0.2) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.2) | |
Accumulated Other Comprehensive Income (Loss), End of Period | (0.3) | |
Pension and other post-retirement liability adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | (3.1) | |
Other comprehensive income (loss) before reclassifications | 0.5 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | |
Accumulated Other Comprehensive Income (Loss), End of Period | (2.8) | |
Foreign currency translation adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | (57.5) | |
Other comprehensive income (loss) before reclassifications | (8.9) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8.9) | |
Accumulated Other Comprehensive Income (Loss), End of Period | (66.4) | |
Derivative [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning of period | (8.6) | |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.2 | |
Accumulated Other Comprehensive Income (Loss), End of Period | $ (8.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 29, 2020 | May 24, 2019 | Feb. 28, 2020 | Feb. 22, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (77.9) | $ (55.1) | $ (69.3) | $ (47.3) |
Other comprehensive income (loss) before reclassifications | (8.6) | |||
Income Tax Expense (Benefit) | (16.7) | 6.3 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8.6) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | (0.3) | ||
Unrealized gain (loss) on investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (0.3) | (0.1) | ||
Other comprehensive income (loss) before reclassifications | (0.2) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.2) | |||
Pension and other post-retirement liability adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2.8) | (3.1) | ||
Other comprehensive income (loss) before reclassifications | 0.5 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.2) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | |||
Pension and other post-retirement liability adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Tax Expense (Benefit) | 0.1 | 0.2 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.2) | (0.5) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Tax Expense (Benefit) | (0.1) | (0.1) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 0.2 | ||
Foreign currency translation adjustments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (66.4) | $ (57.5) | ||
Other comprehensive income (loss) before reclassifications | (8.9) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8.9) | |||
Actuarial losses (gains) [Member] | Pension and other post-retirement liability adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income | (0.3) | (0.7) | ||
Derivative [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Income | $ 0.3 | $ 0.3 |
Fair Value Narrative (Details)
Fair Value Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
May 29, 2020 | Feb. 28, 2020 | May 24, 2019 | Feb. 22, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 728.9 | $ 484.3 | ||
Long-term Debt, Fair Value | 753 | 560 | ||
Cash and cash equivalents | 637.5 | 541 | ||
Restricted Cash | 6.1 | $ 4.9 | $ 3.5 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | 753 | 560 | ||
Fair Value, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 637.5 | 541 | ||
Restricted Cash | 5.9 | 6.1 | ||
Assets, Fair Value Disclosure | 646.5 | 550.4 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1.5 | 0.5 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1.5 | 0.5 | ||
Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1.2 | 1.2 | ||
Fair Value, Recurring [Member] | Auction Rate Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1.9 | 2.1 | ||
Fair Value, Inputs, Level 1 | Fair Value, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 541 | |||
Restricted Cash | 5.9 | 6.1 | ||
Assets, Fair Value Disclosure | 643.4 | 547.1 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Fair Value, Recurring [Member] | Auction Rate Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Fair Value, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | ||
Restricted Cash | 0 | 0 | ||
Assets, Fair Value Disclosure | 1.2 | 1.2 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1.5 | 0.5 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1.5 | 0.5 | ||
Fair Value, Inputs, Level 2 | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1.2 | 1.2 | ||
Fair Value, Inputs, Level 2 | Fair Value, Recurring [Member] | Auction Rate Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | ||
Restricted Cash | 0 | 0 | ||
Assets, Fair Value Disclosure | 1.9 | 2.1 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Foreign Exchange Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Auction Rate Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities, Fair Value Disclosure | 1.9 | $ 2.1 | ||
Unrealized gain on investments | $ (0.2) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | May 29, 2020 | Feb. 28, 2020 |
Inventories [Abstract] | ||
Raw materials and work-in-process | $ 136.9 | $ 122 |
Finished goods | 130.3 | 112.8 |
Inventory, net of valuation allowances | 267.2 | 234.8 |
LIFO reserve | 20.5 | 19.8 |
Inventory, net of valuation allowances and LIFO reserve | 246.7 | 215 |
FIFO inventory amount | $ 109 | $ 93.8 |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2020 | May 24, 2019 | Feb. 28, 2020 | |
Goodwill [Line Items] | |||
Goodwill, Gross | $ 536.6 | $ 537.5 | |
Goodwill, Impaired, Accumulated Impairment Loss | (321.5) | (303.9) | |
Goodwill | 215.1 | 233.6 | |
Goodwill, Impairment Loss | (17.6) | $ 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | $ (0.9) | ||
Goodwill, Impaired, Facts and Circumstances Leading to Impairment | We evaluate goodwill for impairment annually in Q4, or earlier if conditions indicate it is necessary. In Q1 2021, we determined that a triggering event occurred which resulted in an interim impairment evaluation of goodwill for each of our reporting units. During Q1 2021, the market price of our Class A Common Stock declined significantly in connection with overall stock market trends related to the global economic impact of the COVID-19 pandemic. The reduction in revenue in Q1 2021 and changes to our forecasted revenue growth rates and expected operating margins related to the economic disruption of the COVID-19 pandemic were also factors that led to the completion of our interim impairment analysis. For goodwill, we compare the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value, goodwill is not impaired, and no further testing is required. If the fair value of the reporting unit is less than the carrying value, the difference is recorded as an impairment loss. We estimate the fair value of our reporting units using the income approach, which calculates the fair value of each reporting unit based on the present value of its estimated cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. For the evaluation that we conducted in Q1 2021, such conditions included the deterioration of industry and market conditions driven by the COVID-19 pandemic. The discount rates used are based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the reporting units' ability to execute on the projected cash flows. In certain circumstances, we corroborate the results determined using the income approach with a market-based approach that uses observable comparable company information to support the appropriateness of the fair value estimates. As a result of our goodwill impairment testing, we determined that the carrying value of the Orangebox U.K. reporting unit (included in the EMEA segment) exceeded its fair value, resulting in a $17.6 goodwill impairment charge. Following the charge, the reporting unit had no remaining goodwill. We also tested the recoverability of the Orangebox U.K. long-lived assets (other than goodwill) and concluded that those assets were not impaired.For each of our other reporting units, we determined that the fair value of the reporting unit substantially exceeded its carrying value, and no goodwill impairment existed. We also determined that no impairment existed related to the long-lived asset groups for any of our other reporting units. | ||
Americas [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Gross | $ 206.1 | 206.1 | |
Goodwill, Impaired, Accumulated Impairment Loss | (1.7) | (1.7) | |
Goodwill | 204.4 | 204.4 | |
Goodwill, Impairment Loss | 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | ||
EMEA [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 282.6 | 283.5 | |
Goodwill, Impaired, Accumulated Impairment Loss | (282.6) | (265) | |
Goodwill | 0 | 18.5 | |
Goodwill, Impairment Loss | (17.6) | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (0.9) | ||
Other category [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Gross | 47.9 | 47.9 | |
Goodwill, Impaired, Accumulated Impairment Loss | (37.2) | (37.2) | |
Goodwill | 10.7 | $ 10.7 | |
Goodwill, Impairment Loss | 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ 0 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250 | |
Proceeds from Lines of Credit | 250 | $ 0 |
Repayments of Lines of Credit | (5) | $ 0 |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 245 | |
Line of Credit Facility, Interest Rate at Period End | 1.07% | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 125 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 3050.00% | 26.10% |
Other Tax Expense (Benefit) | $ 10 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
2020 Performance Unit Award [Member] [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Stock Issued During Period, Shares, New Issues | 296,600 | |
Performance units and restricted stock units expense | $ 7.8 | $ 9.3 |
Performance Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units and restricted stock units expense | 0.2 | 1.4 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 0.1 | 0.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 4 months 24 days | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance units and restricted stock units expense | $ 7.6 | 7.9 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 2.3 | $ 2.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,761,124 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,131,700 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (7,250) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (33,624) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,851,950 | 1,131,700 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 15.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 9.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 16.44 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 14.57 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 12.81 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years | |
Stock Issued During Period, Shares, New Issues | 614,101 | 765,051 |
FY21 PSU Award - 1 year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Stock Issued During Period, Shares, New Issues | 303,973 |
Share-Based Compensation Narrat
Share-Based Compensation Narrative (Details) - USD ($) | 3 Months Ended | |
May 29, 2020 | May 24, 2019 | |
Performance Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 400,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 4 months 24 days | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,131,700 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 9.03 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $ 8,800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock Issued During Period, Shares, New Issues | 614,101 | 765,051 |
FY2021 PSU Award - 3 year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock Issued During Period, Shares, New Issues | 529,500 | |
2020 PSU - Tranche 1 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock issued during period, shares | 98,867 | |
2020 Performance Unit Award [Member] [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock Issued During Period, Shares, New Issues | 296,600 | |
FY21 PSU Award - 1 year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||
Stock Issued During Period, Shares, New Issues | 303,973 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2020 | May 24, 2019 | ||
Lessee, Lease, Description [Line Items] | |||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | [1] | $ 37.3 | |
Operating Lease, Payments | 12.6 | $ 11.9 | |
Operating Lease, Cost | 13.1 | 12.1 | |
Sublease Income | (0.3) | (0.1) | |
Lease, Cost | 12.8 | 12 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0.5 | $ 39.6 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years 4 months 24 days | |
Operating Leases, Future Minimum Payments, Due in Two Years | [1] | $ 47.2 | |
Operating Leases, Future Minimum Payments, Due in Three Years | [1] | 40.5 | |
Operating Leases, Future Minimum Payments, Due in Four Years | [1] | 35.1 | |
Operating Leases, Future Minimum Payments, Due in Five Years | [1] | 32.8 | |
Operating Leases, Future Minimum Payments, Due Thereafter | [1] | 89.8 | |
Operating Leases, Future Minimum Payments Due | [1] | 282.7 | |
Operating Lease interest included in future lease payments | [1] | 37 | |
Operating Lease, Liability | [1] | $ 245.7 | |
[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. |
Leases weighted (Details)
Leases weighted (Details) | May 29, 2020 | May 24, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | 4.30% |
Leases lessee (Details)
Leases lessee (Details) | May 29, 2020 | May 24, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Payments | 7 years | 7 years 4 months 24 days |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 29, 2020 | May 24, 2019 | Feb. 28, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 482.8 | $ 824.3 | |
Operating income | (52.3) | 27.6 | |
Total assets | 2,539.5 | $ 2,565.4 | |
Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 333.9 | 576.3 | |
Operating income | (23.5) | 32.4 | |
Total assets | 1,085.2 | 1,067.3 | |
EMEA [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 99.5 | 161.3 | |
Operating income | (24.6) | 0.8 | |
Total assets | 387.9 | 454.5 | |
Other category [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 49.4 | 86.7 | |
Operating income | (1.6) | 2.3 | |
Total assets | 203.8 | 225.6 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (2.6) | $ (7.9) | |
Total assets | $ 862.6 | $ 818 |