Price Graph
Price
Yield
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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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Michigan
|
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38-0819050
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(State or other jurisdiction of
incorporation or organization)
|
|
(IRS employer identification number)
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|
|
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901 44th Street SE
Grand Rapids, Michigan
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49508
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
|
|
|
|
Title of each class
|
Name of each exchange on which registered
|
|
Class A Common Stock
|
New York Stock Exchange
|
|
|
|
|
|
|
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|
|
|
|
Page No.
|
|
Part I
|
|
|
|
Item 1.
|
||
|
Item 1A.
|
||
|
Item 1B.
|
||
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Item 2.
|
||
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Item 3.
|
||
|
Item 4.
|
||
|
|
||
|
Part II
|
|
|
|
Item 5.
|
||
|
Item 6.
|
||
|
Item 7.
|
||
|
Item 7A.
|
||
|
Item 8.
|
||
|
Item 9.
|
||
|
Item 9A.
|
||
|
Item 9B.
|
||
|
Part III
|
|
|
|
Item 10.
|
||
|
Item 11.
|
||
|
Item 12.
|
||
|
Item 13.
|
||
|
Item 14.
|
||
|
Part IV
|
|
|
|
Item 15.
|
||
|
Item 16.
|
||
|
Item 1.
|
Business:
|
|
•
|
Steelcase Health
, which is focused on creating healthcare environments that enable empathy, empowerment and connection for patients, care partners and providers engaged in the healthcare experience.
|
|
•
|
Steelcase Education,
which is focused on helping schools, colleges and universities create the most effective, rewarding and inspiring "active learning" environments to meet the evolving needs of students and educators.
|
|
Item 1A.
|
Risk Factors:
|
|
•
|
translating our research regarding the world of work into innovative solutions which address market and user needs,
|
|
•
|
growing our market share with existing customers and new customers,
|
|
•
|
continuing our expansion into adjacent markets such as healthcare clinical spaces, classrooms, libraries and other educational settings and smaller companies,
|
|
•
|
expanding our product categories to include additional architecture and technology product offerings,
|
|
•
|
growing our market share in markets such as China, India and central, eastern and southern Europe, the Middle East and Africa,
|
|
•
|
investing in acquisitions and new business ventures and
|
|
•
|
developing new alliances and additional channels of distribution.
|
|
•
|
differing business practices, cultural factors and regulatory requirements,
|
|
•
|
political, social and economic instability, natural disasters, security concerns, including terrorist activity, armed conflict and civil or military unrest and global health issues and
|
|
•
|
intellectual property protection challenges.
|
|
•
|
fluctuations in the pricing, availability and quality of raw materials,
|
|
•
|
the financial solvency of our suppliers and their supply chains,
|
|
•
|
changes in international trade agreements or tariffs,
|
|
•
|
disruptions caused by labor activities and
|
|
•
|
damage and loss of production from accidents, natural disasters and other causes.
|
|
Item 1B.
|
Unresolved Staff Comments:
|
|
Item 2.
|
Properties:
|
|
Segment/Category Primarily Supported
|
Number of Principal
Locations
|
Owned
|
Leased
|
||||||
|
Americas
|
12
|
|
|
5
|
|
|
7
|
|
|
|
EMEA
|
5
|
|
|
4
|
|
|
1
|
|
|
|
Other
|
4
|
|
|
2
|
|
|
2
|
|
|
|
Total
|
21
|
|
|
11
|
|
|
10
|
|
|
|
Item 3.
|
Legal Proceedings:
|
|
Item 4.
|
Mine Safety Disclosures:
|
|
Name
|
Age
|
Position
|
|
Guillaume M. Alvarez
|
58
|
Senior Vice President, EMEA
|
|
Sara E. Armbruster
|
47
|
Vice President, Strategy, Research and Digital Transformation
|
|
Ulrich H. E. Gwinner
|
54
|
President, Asia Pacific
|
|
James P. Keane
|
58
|
President and Chief Executive Officer, Director
|
|
Robert G. Krestakos
|
56
|
Vice President, Global Operations
|
|
James N. Ludwig
|
54
|
Vice President, Global Design and Product Engineering
|
|
Mark T. Mossing
|
60
|
Corporate Controller and Chief Accounting Officer
|
|
Lizbeth S. O’Shaughnessy
|
56
|
Senior Vice President, Chief Administrative Officer, General Counsel and Secretary
|
|
Eddy F. Schmitt
|
46
|
Senior Vice President, Americas
|
|
Allan W. Smith, Jr.
|
50
|
Vice President, Global Marketing
|
|
David C. Sylvester
|
53
|
Senior Vice President, Chief Financial Officer
|
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities:
|
|
Class A Common Stock
Per Share Price Range
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||||
|
2018
|
|
|
|
|
|
|
|
|
||||||||
|
High
|
$
|
17.90
|
|
|
$
|
18.15
|
|
|
$
|
15.90
|
|
|
$
|
15.90
|
|
|
|
Low
|
$
|
15.45
|
|
|
$
|
12.50
|
|
|
$
|
12.80
|
|
|
$
|
13.48
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
||||||||
|
High
|
$
|
15.89
|
|
|
$
|
16.36
|
|
|
$
|
16.35
|
|
|
$
|
18.14
|
|
|
|
Low
|
$
|
12.47
|
|
|
$
|
13.06
|
|
|
$
|
12.67
|
|
|
$
|
15.35
|
|
|
|
Total Dividends Paid
|
||||||||||||||||||||
|
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Total
|
|||||||||||||||
|
2018
|
|
$
|
15.7
|
|
|
$
|
15.2
|
|
|
$
|
15.0
|
|
|
$
|
15.1
|
|
|
$
|
61.0
|
|
|
2017
|
|
$
|
15.2
|
|
|
$
|
14.4
|
|
|
$
|
14.5
|
|
|
$
|
14.4
|
|
|
$
|
58.5
|
|
|
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)
|
||||||
|
11/25/2017 - 12/29/2017
|
1,868
|
|
$
|
13.95
|
|
—
|
|
$
|
99.2
|
|
|
12/30/2017 - 01/26/2018
|
12,616
|
|
$
|
15.44
|
|
—
|
|
$
|
99.2
|
|
|
01/27/2018 - 02/23/2018
|
2,218
|
|
$
|
13.90
|
|
—
|
|
$
|
99.2
|
|
|
Total
|
16,702
|
|
(2)
|
—
|
|
|
|
|||
|
(1)
|
In January 2016, the Board of Directors approved a share repurchase program permitting the repurchase of up to $150 of shares of our common stock. This program has no specific expiration date.
|
|
(2)
|
All of these shares were repurchased to satisfy participants’ tax withholding obligations upon the vesting of restricted stock unit grants, pursuant to the terms of our Incentive Compensation Plan.
|
|
Item 6.
|
Selected Financial Data:
|
|
|
Year Ended
|
|||||||||||||||||||
|
Financial Highlights
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
February 27,
2015 |
February 28,
2014 |
|||||||||||||||
|
Operating Results:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
$
|
3,055.5
|
|
|
$
|
3,032.4
|
|
|
$
|
3,060.0
|
|
|
$
|
3,059.7
|
|
|
$
|
2,988.9
|
|
|
|
Gross profit
|
1,006.1
|
|
|
1,010.4
|
|
|
971.2
|
|
|
916.0
|
|
|
945.2
|
|
|
|||||
|
Operating income
|
156.0
|
|
|
200.2
|
|
|
174.6
|
|
|
144.9
|
|
|
165.9
|
|
|
|||||
|
Income before income tax expense
|
161.5
|
|
|
196.3
|
|
|
174.8
|
|
|
137.0
|
|
|
147.2
|
|
|
|||||
|
Net income
|
80.7
|
|
|
124.6
|
|
|
170.3
|
|
|
86.1
|
|
|
87.7
|
|
|
|||||
|
Supplemental Operating Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Effective tax rate
|
50.0
|
%
|
|
36.5
|
%
|
|
2.6
|
%
|
|
37.2
|
%
|
|
40.4
|
%
|
|
|||||
|
Restructuring costs
|
$
|
—
|
|
|
$
|
(5.1
|
)
|
|
$
|
(19.9
|
)
|
|
$
|
(40.6
|
)
|
|
$
|
(6.6
|
)
|
|
|
Capital expenditures
|
(87.9
|
)
|
|
(61.1
|
)
|
|
(93.4
|
)
|
|
(97.5
|
)
|
|
(86.8
|
)
|
|
|||||
|
Share Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic earnings per common share
|
$
|
0.68
|
|
|
$
|
1.03
|
|
|
$
|
1.37
|
|
|
$
|
0.69
|
|
|
$
|
0.70
|
|
|
|
Diluted earnings per common share
|
$
|
0.68
|
|
|
$
|
1.03
|
|
|
$
|
1.36
|
|
|
$
|
0.68
|
|
|
$
|
0.69
|
|
|
|
Weighted average shares outstanding - basic
|
119.2
|
|
|
120.7
|
|
|
124.3
|
|
|
124.4
|
|
|
126.0
|
|
|
|||||
|
Weighted average shares outstanding - diluted
|
119.4
|
|
|
121.2
|
|
|
125.3
|
|
|
126.0
|
|
|
127.3
|
|
|
|||||
|
Dividends paid per common share
|
$
|
0.51
|
|
|
$
|
0.48
|
|
|
$
|
0.45
|
|
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and cash equivalents
|
$
|
283.1
|
|
|
$
|
197.1
|
|
|
$
|
181.9
|
|
|
$
|
176.5
|
|
|
$
|
201.8
|
|
|
|
Short-term investments
|
—
|
|
|
73.4
|
|
|
84.1
|
|
|
68.3
|
|
|
119.5
|
|
|
|||||
|
COLI
|
172.2
|
|
|
168.8
|
|
|
160.4
|
|
|
159.5
|
|
|
154.3
|
|
|
|||||
|
Working capital (1)
|
299.2
|
|
|
295.8
|
|
|
266.4
|
|
|
264.9
|
|
|
295.3
|
|
|
|||||
|
Total assets
|
1,859.2
|
|
|
1,792.0
|
|
|
1,808.6
|
|
|
1,719.6
|
|
|
1,724.0
|
|
|
|||||
|
Total debt
|
295.0
|
|
|
297.4
|
|
|
299.1
|
|
|
282.1
|
|
|
284.3
|
|
|
|||||
|
Total liabilities
|
1,045.9
|
|
|
1,025.5
|
|
|
1,071.7
|
|
|
1,055.8
|
|
|
1,046.9
|
|
|
|||||
|
Total shareholders’ equity
|
813.3
|
|
|
766.5
|
|
|
736.9
|
|
|
663.8
|
|
|
677.1
|
|
|
|||||
|
Statement of Cash Flow Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net cash provided by (used in):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating activities
|
$
|
227.0
|
|
|
$
|
170.7
|
|
|
$
|
186.4
|
|
|
$
|
84.2
|
|
|
$
|
178.8
|
|
|
|
Investing activities
|
(47.5
|
)
|
|
(48.4
|
)
|
|
(87.8
|
)
|
|
(14.3
|
)
|
|
(25.2
|
)
|
|
|||||
|
Financing activities
|
(97.5
|
)
|
|
(105.9
|
)
|
|
(90.1
|
)
|
|
(89.8
|
)
|
|
(101.6
|
)
|
|
|||||
|
(1)
|
Working capital equals current assets minus current liabilities, as presented in the Consolidated Balance Sheets.
|
|
Item 7.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations:
|
|
Statement of Operations Data—
Consolidated
|
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
|
February 24,
2017 |
|
February 26,
2016 |
|
||||||||||||||||
|
Revenue
|
$
|
3,055.5
|
|
|
100.0
|
%
|
|
$
|
3,032.4
|
|
|
100.0
|
%
|
|
$
|
3,060.0
|
|
|
100.0
|
%
|
|
|
Cost of sales
|
2,049.4
|
|
|
67.1
|
|
|
2,017.8
|
|
|
66.5
|
|
|
2,075.5
|
|
|
67.8
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
4.2
|
|
|
0.2
|
|
|
13.3
|
|
|
0.5
|
|
|
|||
|
Gross profit
|
1,006.1
|
|
|
32.9
|
|
|
1,010.4
|
|
|
33.3
|
|
|
971.2
|
|
|
31.7
|
|
|
|||
|
Operating expenses
|
850.1
|
|
|
27.8
|
|
|
809.3
|
|
|
26.7
|
|
|
790.0
|
|
|
25.8
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
6.6
|
|
|
0.2
|
|
|
|||
|
Operating income
|
156.0
|
|
|
5.1
|
|
|
200.2
|
|
|
6.6
|
|
|
174.6
|
|
|
5.7
|
|
|
|||
|
Interest expense
|
(17.5
|
)
|
|
(0.6
|
)
|
|
(17.2
|
)
|
|
(0.5
|
)
|
|
(17.6
|
)
|
|
(0.6
|
)
|
|
|||
|
Investment income
|
1.5
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.5
|
|
|
0.1
|
|
|
|||
|
Other income, net
|
21.5
|
|
|
0.8
|
|
|
11.9
|
|
|
0.4
|
|
|
16.3
|
|
|
0.5
|
|
|
|||
|
Income before income tax expense
|
161.5
|
|
|
5.3
|
|
|
196.3
|
|
|
6.5
|
|
|
174.8
|
|
|
5.7
|
|
|
|||
|
Income tax expense
|
80.8
|
|
|
2.7
|
|
|
71.7
|
|
|
2.4
|
|
|
4.5
|
|
|
0.1
|
|
|
|||
|
Net income
|
$
|
80.7
|
|
|
2.6
|
%
|
|
$
|
124.6
|
|
|
4.1
|
%
|
|
$
|
170.3
|
|
|
5.6
|
%
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic
|
$
|
0.68
|
|
|
|
|
$
|
1.03
|
|
|
|
|
$
|
1.37
|
|
|
|
|
|||
|
Diluted
|
$
|
0.68
|
|
|
|
|
$
|
1.03
|
|
|
|
|
$
|
1.36
|
|
|
|
|
|||
|
Organic Revenue Growth (Decline)—Consolidated
|
Year Ended
|
|||||||
|
February 23,
2018 |
February 24,
2017 |
|||||||
|
Prior year revenue
|
$
|
3,032.4
|
|
|
$
|
3,060.0
|
|
|
|
Divestitures
|
(12.5
|
)
|
|
—
|
|
|
||
|
Acquisition
|
4.5
|
|
|
5.1
|
|
|
||
|
Currency translation effects*
|
28.1
|
|
|
(12.5
|
)
|
|
||
|
Prior year revenue, adjusted
|
3,052.5
|
|
|
3,052.6
|
|
|
||
|
Current year revenue
|
3,055.5
|
|
|
3,032.4
|
|
|
||
|
Organic growth (decline) $
|
$
|
3.0
|
|
|
$
|
(20.2
|
)
|
|
|
Organic growth (decline) %
|
—
|
%
|
|
(1
|
)%
|
|
||
|
Reconciliation of Operating Income to
Adjusted Operating Income
|
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
|
February 24,
2017 |
|
February 26,
2016 |
|
||||||||||||||||
|
Operating income
|
$
|
156.0
|
|
|
5.1
|
%
|
|
$
|
200.2
|
|
|
6.6
|
%
|
|
$
|
174.6
|
|
|
5.7
|
%
|
|
|
Add: restructuring costs
|
—
|
|
|
—
|
|
|
5.1
|
|
|
0.2
|
|
|
19.9
|
|
|
0.7
|
|
|
|||
|
Adjusted operating income
|
$
|
156.0
|
|
|
5.1
|
%
|
|
$
|
205.3
|
|
|
6.8
|
%
|
|
$
|
194.5
|
|
|
6.4
|
%
|
|
|
Interest Expense, Investment Income and Other Income, Net
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Interest expense
|
$
|
(17.5
|
)
|
|
$
|
(17.2
|
)
|
|
$
|
(17.6
|
)
|
|
|
Investment income
|
1.5
|
|
|
1.4
|
|
|
1.5
|
|
|
|||
|
Other income (expense), net:
|
|
|
|
|
|
|
||||||
|
Equity in income of unconsolidated affiliates
|
12.8
|
|
|
9.7
|
|
|
13.4
|
|
|
|||
|
Foreign exchange gain (loss)
|
(4.8
|
)
|
|
3.4
|
|
|
(4.0
|
)
|
|
|||
|
Miscellaneous, net
|
13.5
|
|
|
(1.2
|
)
|
|
6.9
|
|
|
|||
|
Total other income, net
|
21.5
|
|
|
11.9
|
|
|
16.3
|
|
|
|||
|
Total interest expense, investment income and other income, net
|
$
|
5.5
|
|
|
$
|
(3.9
|
)
|
|
$
|
0.2
|
|
|
|
Statement of Operations Data—
Americas
|
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Revenue
|
$
|
2,193.8
|
|
|
100.0
|
%
|
|
$
|
2,231.9
|
|
|
100.0
|
%
|
|
$
|
2,256.0
|
|
|
100.0
|
%
|
|
|
Cost of sales
|
1,449.9
|
|
|
66.1
|
|
|
1,453.4
|
|
|
65.1
|
|
|
1,473.6
|
|
|
65.3
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
2.6
|
|
|
0.1
|
|
|
2.4
|
|
|
0.1
|
|
|
|||
|
Gross profit
|
743.9
|
|
|
33.9
|
|
|
775.9
|
|
|
34.8
|
|
|
780.0
|
|
|
34.6
|
|
|
|||
|
Operating expenses
|
556.9
|
|
|
25.4
|
|
|
530.7
|
|
|
23.8
|
|
|
517.7
|
|
|
23.0
|
|
|
|||
|
Restructuring costs (benefits)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
|
(0.1
|
)
|
|
|||
|
Operating income
|
$
|
187.0
|
|
|
8.5
|
%
|
|
$
|
245.2
|
|
|
11.0
|
%
|
|
$
|
265.2
|
|
|
11.7
|
%
|
|
|
Organic Revenue Decline—Americas
|
Year Ended
|
|||||||
|
February 23,
2018 |
February 24,
2017 |
|||||||
|
Prior year revenue
|
$
|
2,231.9
|
|
|
$
|
2,256.0
|
|
|
|
Divestiture
|
(8.3
|
)
|
|
—
|
|
|
||
|
Acquisition
|
4.5
|
|
|
5.1
|
|
|
||
|
Currency translation effects*
|
2.0
|
|
|
(0.9
|
)
|
|
||
|
Prior year revenue, adjusted
|
2,230.1
|
|
|
2,260.2
|
|
|
||
|
Current year revenue
|
2,193.8
|
|
|
2,231.9
|
|
|
||
|
Organic decline $
|
$
|
(36.3
|
)
|
|
$
|
(28.3
|
)
|
|
|
Organic decline %
|
(2
|
)%
|
|
(1
|
)%
|
|
||
|
Reconciliation of Operating Income to
Adjusted Operating Income—Americas |
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Operating income
|
$
|
187.0
|
|
|
8.5
|
%
|
|
$
|
245.2
|
|
|
11.0
|
%
|
|
$
|
265.2
|
|
|
11.7
|
%
|
|
|
Add: restructuring costs
|
—
|
|
|
—
|
|
|
2.6
|
|
|
0.1
|
|
|
(0.5
|
)
|
|
—
|
|
|
|||
|
Adjusted operating income
|
$
|
187.0
|
|
|
8.5
|
%
|
|
$
|
247.8
|
|
|
11.1
|
%
|
|
$
|
264.7
|
|
|
11.7
|
%
|
|
|
•
|
approximately $10 of higher commodity costs,
|
|
•
|
higher investments in support of product development and manufacturing agility,
|
|
•
|
unfavorable shifts in business mix,
|
|
•
|
$3.4 of charges associated with a defined benefit plan annuitization in Q1 2018,
|
|
•
|
approximately $17 of benefits associated with ongoing cost reduction efforts,
|
|
•
|
favorability related to improvements in negotiated customer pricing, and
|
|
•
|
approximately $5 of lower warranty costs compared to the prior year.
|
|
Statement of Operations Data—EMEA
|
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Revenue
|
$
|
524.2
|
|
|
100.0
|
%
|
|
$
|
503.9
|
|
|
100.0
|
%
|
|
$
|
520.6
|
|
|
100.0
|
%
|
|
|
Cost of sales
|
381.9
|
|
|
72.9
|
|
|
370.7
|
|
|
73.6
|
|
|
416.3
|
|
|
80.0
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
1.6
|
|
|
0.3
|
|
|
10.9
|
|
|
2.1
|
|
|
|||
|
Gross profit
|
142.3
|
|
|
27.1
|
|
|
131.6
|
|
|
26.1
|
|
|
93.4
|
|
|
17.9
|
|
|
|||
|
Operating expenses
|
156.3
|
|
|
29.8
|
|
|
151.6
|
|
|
30.1
|
|
|
148.2
|
|
|
28.5
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
0.9
|
|
|
0.1
|
|
|
9.5
|
|
|
1.8
|
|
|
|||
|
Operating loss
|
$
|
(14.0
|
)
|
|
(2.7
|
)%
|
|
$
|
(20.9
|
)
|
|
(4.1
|
)%
|
|
$
|
(64.3
|
)
|
|
(12.4
|
)%
|
|
|
Organic Revenue (Decline)—EMEA
|
Year Ended
|
|||||||
|
February 23,
2018 |
February 24,
2017 |
|||||||
|
Prior year revenue
|
$
|
503.9
|
|
|
$
|
520.6
|
|
|
|
Divestitures
|
(4.2
|
)
|
|
—
|
|
|
||
|
Currency translation effects*
|
22.7
|
|
|
(9.0
|
)
|
|
||
|
Prior year revenue, adjusted
|
522.4
|
|
|
511.6
|
|
|
||
|
Current year revenue
|
524.2
|
|
|
503.9
|
|
|
||
|
Organic growth (decline) $
|
$
|
1.8
|
|
|
$
|
(7.7
|
)
|
|
|
Organic growth (decline) %
|
—
|
%
|
|
(2
|
)%
|
|
||
|
Reconciliation of Operating Loss to
Adjusted Operating Loss—EMEA |
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Operating loss
|
$
|
(14.0
|
)
|
|
(2.7
|
)%
|
|
$
|
(20.9
|
)
|
|
(4.1
|
)%
|
|
$
|
(64.3
|
)
|
|
(12.4
|
)%
|
|
|
Add: restructuring costs
|
—
|
|
|
—
|
|
|
2.5
|
|
|
0.4
|
|
|
20.4
|
|
|
3.9
|
|
|
|||
|
Adjusted operating loss
|
$
|
(14.0
|
)
|
|
(2.7
|
)%
|
|
$
|
(18.4
|
)
|
|
(3.7
|
)%
|
|
$
|
(43.9
|
)
|
|
(8.5
|
)%
|
|
|
Statement of Operations Data—Other
|
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Revenue
|
$
|
337.5
|
|
|
100.0
|
%
|
|
$
|
296.6
|
|
|
100.0
|
%
|
|
$
|
283.4
|
|
|
100.0
|
%
|
|
|
Cost of sales
|
217.6
|
|
|
64.5
|
|
|
193.7
|
|
|
65.3
|
|
|
185.6
|
|
|
65.5
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Gross profit
|
119.9
|
|
|
35.5
|
|
|
102.9
|
|
|
34.7
|
|
|
97.8
|
|
|
34.5
|
|
|
|||
|
Operating expenses
|
101.5
|
|
|
30.1
|
|
|
89.9
|
|
|
30.3
|
|
|
86.6
|
|
|
30.5
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Operating income
|
$
|
18.4
|
|
|
5.4
|
%
|
|
$
|
13.0
|
|
|
4.4
|
%
|
|
$
|
11.2
|
|
|
4.0
|
%
|
|
|
Organic Revenue Growth—Other
|
Year Ended
|
|||||||
|
February 23,
2018 |
February 24,
2017 |
|||||||
|
Prior year revenue
|
$
|
296.6
|
|
|
$
|
283.4
|
|
|
|
Currency translation effects*
|
3.4
|
|
|
(2.6
|
)
|
|
||
|
Prior year revenue, adjusted
|
300.0
|
|
|
280.8
|
|
|
||
|
Current year revenue
|
337.5
|
|
|
296.6
|
|
|
||
|
Organic growth $
|
$
|
37.5
|
|
|
$
|
15.8
|
|
|
|
Organic growth %
|
13
|
%
|
|
6
|
%
|
|
||
|
Reconciliation of Operating Income to
Adjusted Operating Income—Other |
Year Ended
|
||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Operating income
|
$
|
18.4
|
|
|
5.4
|
%
|
|
$
|
13.0
|
|
|
4.4
|
%
|
|
$
|
11.2
|
|
|
4.0
|
%
|
|
|
Add: restructuring costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Adjusted operating income
|
$
|
18.4
|
|
|
5.4
|
%
|
|
$
|
13.0
|
|
|
4.4
|
%
|
|
$
|
11.2
|
|
|
4.0
|
%
|
|
|
Statement of Operations Data—Corporate
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Operating expenses
|
$
|
35.4
|
|
|
$
|
37.1
|
|
|
$
|
37.5
|
|
|
|
Liquidity Sources
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Cash and cash equivalents
|
$
|
283.1
|
|
|
$
|
197.1
|
|
|
|
Short-term investments
|
—
|
|
|
73.4
|
|
|
||
|
Company-owned life insurance
|
172.2
|
|
|
168.8
|
|
|
||
|
Availability under credit facilities
|
152.2
|
|
|
150.3
|
|
|
||
|
Total liquidity
|
$
|
607.5
|
|
|
$
|
589.6
|
|
|
|
Cash Flow Data
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Net cash flow provided by (used in):
|
|
|
|
|
|
|
||||||
|
Operating activities
|
$
|
227.0
|
|
|
$
|
170.7
|
|
|
$
|
186.4
|
|
|
|
Investing activities
|
(47.5
|
)
|
|
(48.4
|
)
|
|
(87.8
|
)
|
|
|||
|
Financing activities
|
(97.5
|
)
|
|
(105.9
|
)
|
|
(90.1
|
)
|
|
|||
|
Effect of exchange rate changes on cash and cash equivalents
|
4.0
|
|
|
(1.2
|
)
|
|
(3.1
|
)
|
|
|||
|
Net increase in cash and cash equivalents
|
86.0
|
|
|
15.2
|
|
|
5.4
|
|
|
|||
|
Cash and cash equivalents, beginning of period
|
197.1
|
|
|
181.9
|
|
|
176.5
|
|
|
|||
|
Cash and cash equivalents, end of period
|
$
|
283.1
|
|
|
$
|
197.1
|
|
|
$
|
181.9
|
|
|
|
Cash Flow Data—Operating Activities
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Net income
|
$
|
80.7
|
|
|
$
|
124.6
|
|
|
$
|
170.3
|
|
|
|
Depreciation and amortization
|
65.9
|
|
|
60.3
|
|
|
65.7
|
|
|
|||
|
Gains related to sales of investments in unconsolidated affiliates
|
(14.4
|
)
|
|
—
|
|
|
(8.5
|
)
|
|
|||
|
Deferred income taxes
|
52.9
|
|
|
26.8
|
|
|
(68.3
|
)
|
|
|||
|
Non-cash stock compensation
|
19.1
|
|
|
19.8
|
|
|
21.0
|
|
|
|||
|
Equity in income of unconsolidated affiliates
|
(12.8
|
)
|
|
(9.7
|
)
|
|
(13.4
|
)
|
|
|||
|
Dividends received from unconsolidated affiliates
|
10.3
|
|
|
9.9
|
|
|
12.4
|
|
|
|||
|
Other
|
(9.5
|
)
|
|
(8.8
|
)
|
|
(2.5
|
)
|
|
|||
|
Changes in accounts receivable, inventories and accounts payable
|
9.3
|
|
|
16.3
|
|
|
3.4
|
|
|
|||
|
Assets related to derivative instruments
|
1.4
|
|
|
(1.8
|
)
|
|
22.3
|
|
|
|||
|
VAT recoverable
|
7.6
|
|
|
17.0
|
|
|
(28.9
|
)
|
|
|||
|
Long-term income taxes receivable
|
18.7
|
|
|
(18.5
|
)
|
|
—
|
|
|
|||
|
Changes in employee compensation liabilities
|
(13.8
|
)
|
|
(8.8
|
)
|
|
20.4
|
|
|
|||
|
Changes in other operating assets and liabilities
|
11.6
|
|
|
(56.4
|
)
|
|
(7.5
|
)
|
|
|||
|
Net cash provided by operating activities
|
$
|
227.0
|
|
|
$
|
170.7
|
|
|
$
|
186.4
|
|
|
|
Cash Flow Data—Investing Activities
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Capital expenditures
|
$
|
(87.9
|
)
|
|
$
|
(61.1
|
)
|
|
$
|
(93.4
|
)
|
|
|
Purchases of investments
|
(52.1
|
)
|
|
(112.6
|
)
|
|
(105.7
|
)
|
|
|||
|
Liquidations of investments
|
125.6
|
|
|
126.6
|
|
|
95.1
|
|
|
|||
|
Proceeds related to sales of investments in unconsolidated affiliates
|
19.0
|
|
|
—
|
|
|
18.0
|
|
|
|||
|
Acquisitions, net of cash acquired
|
(68.3
|
)
|
|
(4.0
|
)
|
|
(6.9
|
)
|
|
|||
|
Other
|
16.2
|
|
|
2.7
|
|
|
5.1
|
|
|
|||
|
Net cash used in investing activities
|
$
|
(47.5
|
)
|
|
$
|
(48.4
|
)
|
|
$
|
(87.8
|
)
|
|
|
Cash Flow Data—Financing Activities
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Dividends paid
|
$
|
(61.0
|
)
|
|
$
|
(58.5
|
)
|
|
$
|
(57.0
|
)
|
|
|
Common stock repurchases
|
(33.8
|
)
|
|
(48.4
|
)
|
|
(56.4
|
)
|
|
|||
|
Excess tax benefit from vesting of stock awards
|
—
|
|
|
3.3
|
|
|
7.0
|
|
|
|||
|
Net borrowings and repayments of debt
|
(2.7
|
)
|
|
(2.3
|
)
|
|
16.3
|
|
|
|||
|
Net cash used in financing activities
|
$
|
(97.5
|
)
|
|
$
|
(105.9
|
)
|
|
$
|
(90.1
|
)
|
|
|
Contractual Obligations
|
Payments Due by Period
|
|||||||||||||||||||
|
Total
|
Less than
1 Year
|
1-3
Years
|
3-5
Years
|
After 5
Years
|
||||||||||||||||
|
Long-term debt and short-term borrowings
|
$
|
295.0
|
|
|
$
|
2.8
|
|
|
$
|
254.4
|
|
|
$
|
5.2
|
|
|
$
|
32.6
|
|
|
|
Estimated interest on debt obligations
|
53.8
|
|
|
17.2
|
|
|
34.2
|
|
|
2.0
|
|
|
0.4
|
|
|
|||||
|
Operating leases
|
207.1
|
|
|
48.5
|
|
|
72.5
|
|
|
47.3
|
|
|
38.8
|
|
|
|||||
|
Committed capital expenditures
|
15.4
|
|
|
15.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
Purchase obligations
|
64.0
|
|
|
44.8
|
|
|
18.3
|
|
|
0.9
|
|
|
—
|
|
|
|||||
|
Other liabilities
|
1.4
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
Employee benefit and compensation obligations
|
248.6
|
|
|
114.0
|
|
|
31.6
|
|
|
21.0
|
|
|
82.0
|
|
|
|||||
|
Total
|
$
|
885.3
|
|
|
$
|
244.1
|
|
|
$
|
411.0
|
|
|
$
|
76.4
|
|
|
$
|
153.8
|
|
|
|
Liquidity Facilities
|
February 23,
2018 |
||
|
Global committed bank facility
|
$
|
125.0
|
|
|
Various uncommitted lines
|
27.2
|
|
|
|
Total credit lines available
|
152.2
|
|
|
|
Less: borrowings outstanding
|
—
|
|
|
|
Available capacity
|
$
|
152.2
|
|
|
Reportable Segment
|
Goodwill
|
Other Intangible
Assets, Net
|
||||||
|
Americas
|
$
|
119.7
|
|
|
$
|
41.6
|
|
|
|
EMEA
|
—
|
|
|
0.1
|
|
|
||
|
Other category
|
18.5
|
|
|
3.9
|
|
|
||
|
Total
|
$
|
138.2
|
|
|
$
|
45.6
|
|
|
|
Reportable Segment
|
Enterprise Value
Available in Excess
of Goodwill
|
||
|
Americas
|
$
|
1,199.9
|
|
|
Other category
|
50.6
|
|
|
|
Reportable Segment
|
Enterprise Value
Available in Excess
of Goodwill
|
||
|
Americas
|
$
|
1,034.8
|
|
|
Other category
|
42.6
|
|
|
|
|
Defined Benefit
Pension Plans
|
Post-Retirement
Plans
|
||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 23,
2018 |
February 24,
2017 |
|||||||||||||
|
Fair value of plan assets
|
$
|
33.1
|
|
|
$
|
46.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Benefit plan obligations
|
80.1
|
|
|
96.8
|
|
|
43.4
|
|
|
46.0
|
|
|
||||
|
Funded status
|
$
|
(47.0
|
)
|
|
$
|
(50.1
|
)
|
|
$
|
(43.4
|
)
|
|
$
|
(46.0
|
)
|
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk:
|
|
Item 8.
|
Financial Statements and Supplementary Data:
|
|
/s/ Deloitte & Touche LLP
|
|
|
|
|
|
Grand Rapids, Michigan
|
|
|
April 10, 2018
|
|
|
/s/ Deloitte & Touche LLP
|
|
|
|
|
|
Grand Rapids, Michigan
|
|
|
April 10, 2018
|
|
|
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Revenue
|
$
|
3,055.5
|
|
|
$
|
3,032.4
|
|
|
$
|
3,060.0
|
|
|
|
Cost of sales
|
2,049.4
|
|
|
2,017.8
|
|
|
2,075.5
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
4.2
|
|
|
13.3
|
|
|
|||
|
Gross profit
|
1,006.1
|
|
|
1,010.4
|
|
|
971.2
|
|
|
|||
|
Operating expenses
|
850.1
|
|
|
809.3
|
|
|
790.0
|
|
|
|||
|
Restructuring costs
|
—
|
|
|
0.9
|
|
|
6.6
|
|
|
|||
|
Operating income
|
156.0
|
|
|
200.2
|
|
|
174.6
|
|
|
|||
|
Interest expense
|
(17.5
|
)
|
|
(17.2
|
)
|
|
(17.6
|
)
|
|
|||
|
Investment income
|
1.5
|
|
|
1.4
|
|
|
1.5
|
|
|
|||
|
Other income, net
|
21.5
|
|
|
11.9
|
|
|
16.3
|
|
|
|||
|
Income before income tax expense
|
161.5
|
|
|
196.3
|
|
|
174.8
|
|
|
|||
|
Income tax expense
|
80.8
|
|
|
71.7
|
|
|
4.5
|
|
|
|||
|
Net income
|
$
|
80.7
|
|
|
$
|
124.6
|
|
|
$
|
170.3
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
||||||
|
Basic
|
$
|
0.68
|
|
|
$
|
1.03
|
|
|
$
|
1.37
|
|
|
|
Diluted
|
$
|
0.68
|
|
|
$
|
1.03
|
|
|
$
|
1.36
|
|
|
|
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Net income
|
$
|
80.7
|
|
|
$
|
124.6
|
|
|
$
|
170.3
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Other comprehensive income (loss), gross:
|
|
|
|
|
|
|
||||||
|
Unrealized gain (loss) on investments
|
—
|
|
|
(1.4
|
)
|
|
(0.2
|
)
|
|
|||
|
Pension and other post-retirement liability adjustments
|
1.1
|
|
|
4.7
|
|
|
2.6
|
|
|
|||
|
Foreign currency translation adjustments
|
38.6
|
|
|
(12.4
|
)
|
|
(12.2
|
)
|
|
|||
|
Total other comprehensive income (loss), gross
|
39.7
|
|
|
(9.1
|
)
|
|
(9.8
|
)
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Other comprehensive income (loss), tax (expense) benefit:
|
|
|
|
|
|
|
||||||
|
Unrealized gain (loss) on investments
|
—
|
|
|
0.5
|
|
|
—
|
|
|
|||
|
Pension and other post-retirement liability adjustments
|
0.6
|
|
|
(2.4
|
)
|
|
(0.4
|
)
|
|
|||
|
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Total other comprehensive income (loss), tax (expense) benefit
|
0.6
|
|
|
(1.9
|
)
|
|
(0.4
|
)
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Other comprehensive income (loss), net:
|
|
|
|
|
|
|
||||||
|
Unrealized gain (loss) on investments
|
—
|
|
|
(0.9
|
)
|
|
(0.2
|
)
|
|
|||
|
Pension and other post-retirement liability adjustments
|
1.7
|
|
|
2.3
|
|
|
2.2
|
|
|
|||
|
Foreign currency translation adjustments
|
38.6
|
|
|
(12.4
|
)
|
|
(12.2
|
)
|
|
|||
|
Total other comprehensive income (loss), net
|
40.3
|
|
|
(11.0
|
)
|
|
(10.2
|
)
|
|
|||
|
Comprehensive income
|
$
|
121.0
|
|
|
$
|
113.6
|
|
|
$
|
160.1
|
|
|
|
|
February 23,
2018 |
February 24,
2017 |
||||||
|
ASSETS
|
||||||||
|
Current assets:
|
|
|
|
|
||||
|
Cash and cash equivalents
|
$
|
283.1
|
|
|
$
|
197.1
|
|
|
|
Short-term investments
|
—
|
|
|
73.4
|
|
|
||
|
Accounts receivable, net of allowances of $11.1 and $11.2
|
300.3
|
|
|
307.6
|
|
|
||
|
Inventories
|
184.6
|
|
|
163.1
|
|
|
||
|
Prepaid expenses
|
19.2
|
|
|
19.1
|
|
|
||
|
Assets held for sale
|
13.4
|
|
|
—
|
|
|
||
|
Other current assets
|
53.3
|
|
|
58.9
|
|
|
||
|
Total current assets
|
853.9
|
|
|
819.2
|
|
|
||
|
Property, plant and equipment, net of accumulated depreciation of $998.1 and $959.6
|
435.1
|
|
|
408.1
|
|
|
||
|
Company-owned life insurance ("COLI")
|
172.2
|
|
|
168.8
|
|
|
||
|
Deferred income taxes
|
135.4
|
|
|
179.6
|
|
|
||
|
Goodwill
|
138.2
|
|
|
106.7
|
|
|
||
|
Other intangible assets, net of accumulated amortization of $44.6 and $43.2
|
45.6
|
|
|
16.8
|
|
|
||
|
Investments in unconsolidated affiliates
|
48.4
|
|
|
50.5
|
|
|
||
|
Other assets
|
30.4
|
|
|
42.3
|
|
|
||
|
Total assets
|
$
|
1,859.2
|
|
|
$
|
1,792.0
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|||||||
|
Current liabilities:
|
|
|
|
|
||||
|
Accounts payable
|
$
|
223.1
|
|
|
$
|
216.8
|
|
|
|
Short-term borrowings and current portion of long-term debt
|
2.8
|
|
|
2.8
|
|
|
||
|
Accrued expenses:
|
|
|
|
|
||||
|
Employee compensation
|
145.0
|
|
|
154.3
|
|
|
||
|
Employee benefit plan obligations
|
39.2
|
|
|
35.0
|
|
|
||
|
Accrued promotions
|
25.5
|
|
|
19.0
|
|
|
||
|
Customer deposits
|
28.2
|
|
|
15.9
|
|
|
||
|
Product warranties
|
18.1
|
|
|
20.4
|
|
|
||
|
Other
|
72.8
|
|
|
59.2
|
|
|
||
|
Total current liabilities
|
554.7
|
|
|
523.4
|
|
|
||
|
Long-term liabilities:
|
|
|
|
|
||||
|
Long-term debt less current maturities
|
292.2
|
|
|
294.6
|
|
|
||
|
Employee benefit plan obligations
|
130.8
|
|
|
134.3
|
|
|
||
|
Other long-term liabilities
|
68.2
|
|
|
73.2
|
|
|
||
|
Total long-term liabilities
|
491.2
|
|
|
502.1
|
|
|
||
|
Total liabilities
|
1,045.9
|
|
|
1,025.5
|
|
|
||
|
Shareholders’ equity:
|
|
|
|
|
||||
|
Preferred stock-no par value; 50,000,000 shares authorized, none issued and outstanding
|
—
|
|
|
—
|
|
|
||
|
Class A common stock-no par value; 475,000,000 shares authorized, 85,728,770 and 85,975,298 issued and outstanding
|
—
|
|
|
—
|
|
|
||
|
Class B common stock-no par value, convertible into Class A common stock on a one-for-one basis; 475,000,000 shares authorized, 30,428,673 and 31,348,049 issued and outstanding
|
—
|
|
|
—
|
|
|
||
|
Additional paid-in capital
|
4.6
|
|
|
—
|
|
|
||
|
Accumulated other comprehensive loss
|
(10.3
|
)
|
|
(50.6
|
)
|
|
||
|
Retained earnings
|
819.0
|
|
|
817.1
|
|
|
||
|
Total shareholders’ equity
|
813.3
|
|
|
766.5
|
|
|
||
|
Total liabilities and shareholders’ equity
|
$
|
1,859.2
|
|
|
$
|
1,792.0
|
|
|
|
|
Common
Shares
Outstanding
|
Class A
Common
Stock
|
Class B
Common
Stock
|
Additional
Paid-in
Capital
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Retained
Earnings
|
Total
Shareholders’
Equity
|
|||||||||||||||||||||
|
February 27, 2015
|
|
121,468,547
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.0
|
|
|
$
|
(29.4
|
)
|
|
$
|
688.2
|
|
|
$
|
663.8
|
|
|
|
Common stock issuance
|
|
39,052
|
|
|
|
|
|
|
0.7
|
|
|
|
|
|
|
0.7
|
|
|
||||||||||
|
Common stock repurchases
|
|
(3,737,573
|
)
|
|
|
|
|
|
|
(31.4
|
)
|
|
|
|
(25.0
|
)
|
|
(56.4
|
)
|
|
||||||||
|
Tax effect of exercise of stock awards
|
|
|
|
|
|
|
|
7.0
|
|
|
|
|
|
|
7.0
|
|
|
|||||||||||
|
Performance units issued as common stock
|
|
1,026,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Restricted stock units issued as common stock
|
|
574,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Performance units and restricted stock units expense
|
|
|
|
|
|
|
|
20.3
|
|
|
|
|
|
|
20.3
|
|
|
|||||||||||
|
Other repurchases related to stock vested not yet issued
|
|
|
|
|
|
|
|
(1.6
|
)
|
|
|
|
|
|
(1.6
|
)
|
|
|||||||||||
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
(10.2
|
)
|
|
|
|
(10.2
|
)
|
|
|||||||||||
|
Dividends paid ($0.45 per share)
|
|
|
|
|
|
|
|
|
|
|
|
(57.0
|
)
|
|
(57.0
|
)
|
|
|||||||||||
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
170.3
|
|
|
170.3
|
|
|
|||||||||||
|
February 26, 2016
|
|
119,370,766
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(39.6
|
)
|
|
$
|
776.5
|
|
|
$
|
736.9
|
|
|
|
Common stock issuance
|
|
48,045
|
|
|
|
|
|
|
|
0.7
|
|
|
|
|
|
|
0.7
|
|
|
|||||||||
|
Common stock repurchases
|
|
(3,507,238
|
)
|
|
|
|
|
|
|
(22.9
|
)
|
|
|
|
(25.5
|
)
|
|
(48.4
|
)
|
|
||||||||
|
Tax effect of exercise of stock awards
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
|
3.3
|
|
|
|||||||||||
|
Performance units issued as common stock
|
|
469,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Restricted stock units issued as common stock
|
|
942,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Performance units and restricted stock units expense
|
|
|
|
|
|
|
|
19.1
|
|
|
|
|
|
|
19.1
|
|
|
|||||||||||
|
Other repurchases related to stock vested not yet issued
|
|
|
|
|
|
|
|
(0.2
|
)
|
|
|
|
|
|
(0.2
|
)
|
|
|||||||||||
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
(11.0
|
)
|
|
|
|
(11.0
|
)
|
|
|||||||||||
|
Dividends paid ($0.48 per share)
|
|
|
|
|
|
|
|
|
|
|
|
(58.5
|
)
|
|
(58.5
|
)
|
|
|||||||||||
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
124.6
|
|
|
124.6
|
|
|
|||||||||||
|
February 24, 2017
|
|
117,323,347
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(50.6
|
)
|
|
$
|
817.1
|
|
|
$
|
766.5
|
|
|
|
Common stock issuance
|
|
50,445
|
|
|
|
|
|
|
|
0.7
|
|
|
|
|
|
|
0.7
|
|
|
|||||||||
|
Common stock repurchases
|
|
(2,410,671
|
)
|
|
|
|
|
|
|
(16.0
|
)
|
|
|
|
(17.8
|
)
|
|
(33.8
|
)
|
|
||||||||
|
Performance units issued as common stock
|
|
346,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Restricted stock units issued as common stock
|
|
847,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Performance units and restricted stock units expense
|
|
|
|
|
|
|
|
18.4
|
|
|
|
|
|
|
18.4
|
|
|
|||||||||||
|
Other repurchases related to stock vested not yet issued
|
|
|
|
|
|
|
|
1.5
|
|
|
|
|
|
|
1.5
|
|
|
|||||||||||
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
40.3
|
|
|
|
|
|
40.3
|
|
|
|||||||||
|
Dividends paid ($0.51 per share)
|
|
|
|
|
|
|
|
|
|
|
|
(61.0
|
)
|
|
(61.0
|
)
|
|
|||||||||||
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
80.7
|
|
|
80.7
|
|
|
|||||||||||
|
February 23, 2018
|
|
116,157,443
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.6
|
|
|
$
|
(10.3
|
)
|
|
$
|
819.0
|
|
|
$
|
813.3
|
|
|
|
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Net income
|
$
|
80.7
|
|
|
$
|
124.6
|
|
|
$
|
170.3
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
|
Depreciation and amortization
|
65.9
|
|
|
60.3
|
|
|
65.7
|
|
|
|||
|
Gains related to sales of investments in unconsolidated affiliates
|
(14.4
|
)
|
|
—
|
|
|
(8.5
|
)
|
|
|||
|
Deferred income taxes
|
52.9
|
|
|
26.8
|
|
|
(68.3
|
)
|
|
|||
|
Non-cash stock compensation
|
19.1
|
|
|
19.8
|
|
|
21.0
|
|
|
|||
|
Equity in income of unconsolidated affiliates
|
(12.8
|
)
|
|
(9.7
|
)
|
|
(13.4
|
)
|
|
|||
|
Dividends received from unconsolidated affiliates
|
10.3
|
|
|
9.9
|
|
|
12.4
|
|
|
|||
|
Other
|
(9.5
|
)
|
|
(8.8
|
)
|
|
(2.5
|
)
|
|
|||
|
Changes in operating assets and liabilities, net of acquisition
|
|
|
|
|
|
|
||||||
|
Accounts receivable
|
18.5
|
|
|
11.9
|
|
|
0.7
|
|
|
|||
|
Inventories
|
(8.5
|
)
|
|
(5.1
|
)
|
|
6.8
|
|
|
|||
|
Assets related to derivative instruments
|
1.4
|
|
|
(1.8
|
)
|
|
22.3
|
|
|
|||
|
VAT recoverable
|
7.6
|
|
|
17.0
|
|
|
(28.9
|
)
|
|
|||
|
Long-term income taxes receivable
|
18.7
|
|
|
(18.5
|
)
|
|
—
|
|
|
|||
|
Other assets
|
(4.5
|
)
|
|
(19.6
|
)
|
|
2.9
|
|
|
|||
|
Accounts payable
|
(0.7
|
)
|
|
9.5
|
|
|
(4.1
|
)
|
|
|||
|
Employee compensation liabilities
|
(13.8
|
)
|
|
(8.8
|
)
|
|
20.4
|
|
|
|||
|
Accrued expenses and other liabilities
|
16.1
|
|
|
(36.8
|
)
|
|
(10.4
|
)
|
|
|||
|
Net cash provided by operating activities
|
227.0
|
|
|
170.7
|
|
|
186.4
|
|
|
|||
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Capital expenditures
|
(87.9
|
)
|
|
(61.1
|
)
|
|
(93.4
|
)
|
|
|||
|
Purchases of investments
|
(52.1
|
)
|
|
(112.6
|
)
|
|
(105.7
|
)
|
|
|||
|
Liquidations of investments
|
125.6
|
|
|
126.6
|
|
|
95.1
|
|
|
|||
|
Proceeds related to sales of investments in unconsolidated affiliates
|
19.0
|
|
|
—
|
|
|
18.0
|
|
|
|||
|
Acquisitions, net of cash acquired
|
(68.3
|
)
|
|
(4.0
|
)
|
|
(6.9
|
)
|
|
|||
|
Other
|
16.2
|
|
|
2.7
|
|
|
5.1
|
|
|
|||
|
Net cash used in investing activities
|
(47.5
|
)
|
|
(48.4
|
)
|
|
(87.8
|
)
|
|
|||
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
|
Dividends paid
|
(61.0
|
)
|
|
(58.5
|
)
|
|
(57.0
|
)
|
|
|||
|
Common stock repurchases
|
(33.8
|
)
|
|
(48.4
|
)
|
|
(56.4
|
)
|
|
|||
|
Excess tax benefit from vesting of stock awards
|
—
|
|
|
3.3
|
|
|
7.0
|
|
|
|||
|
Borrowings of long-term debt and lines of credit, net of issuance costs
|
—
|
|
|
—
|
|
|
51.1
|
|
|
|||
|
Repayment of long-term debt and lines of credit
|
(2.7
|
)
|
|
(2.3
|
)
|
|
(34.8
|
)
|
|
|||
|
Net cash used in financing activities
|
(97.5
|
)
|
|
(105.9
|
)
|
|
(90.1
|
)
|
|
|||
|
Effect of exchange rate changes on cash and cash equivalents
|
4.0
|
|
|
(1.2
|
)
|
|
(3.1
|
)
|
|
|||
|
Net increase in cash and cash equivalents
|
86.0
|
|
|
15.2
|
|
|
5.4
|
|
|
|||
|
Cash and cash equivalents, beginning of period
|
197.1
|
|
|
181.9
|
|
|
176.5
|
|
|
|||
|
Cash and cash equivalents, end of period
|
$
|
283.1
|
|
|
$
|
197.1
|
|
|
$
|
181.9
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
|
||||||
|
Income taxes paid, net of refunds received
|
$
|
4.8
|
|
|
$
|
67.7
|
|
|
$
|
57.0
|
|
|
|
Interest paid, net of amounts capitalized
|
$
|
17.0
|
|
|
$
|
17.0
|
|
|
$
|
17.1
|
|
|
|
1.
|
NATURE OF OPERATIONS
|
|
2.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
Net Reserve for Estimated Domestic Workers' Compensation Claims
|
Year Ended
|
|||||||
|
February 23, 2018
|
February 24, 2017
|
|||||||
|
Assets:
|
|
|
|
|
||||
|
Long-term -
Other assets
|
$
|
4.4
|
|
|
$
|
4.0
|
|
|
|
Liabilities:
|
|
|
|
|
||||
|
Current -
Accrued expenses - other
|
3.0
|
|
|
2.4
|
|
|
||
|
Long-term -
Other long-term liabilities
|
12.9
|
|
|
13.9
|
|
|
||
|
|
15.9
|
|
|
16.3
|
|
|
||
|
Net reserve
|
$
|
11.5
|
|
|
$
|
12.3
|
|
|
|
Net Reserve for Estimated Product Liability Claims
|
Year Ended
|
|||||||
|
February 23, 2018
|
February 24, 2017
|
|||||||
|
Assets:
|
|
|
|
|
||||
|
Long-term -
Other long-term assets
|
$
|
2.7
|
|
|
$
|
2.4
|
|
|
|
Liabilities:
|
|
|
|
|
||||
|
Current -
Accrued expenses - other
|
1.3
|
|
|
1.4
|
|
|
||
|
Long-term -
Other long-term liabilities
|
6.7
|
|
|
7.3
|
|
|
||
|
|
8.0
|
|
|
8.7
|
|
|
||
|
Net reserve
|
$
|
5.3
|
|
|
$
|
6.3
|
|
|
|
Roll-Forward of Accrued
Liability for Product Warranties |
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Balance as of beginning of period
|
$
|
41.3
|
|
|
$
|
42.1
|
|
|
$
|
39.4
|
|
|
|
Accruals related to product warranties, recalls and retrofits
|
10.6
|
|
|
19.5
|
|
|
18.1
|
|
|
|||
|
Reductions for settlements
|
(15.8
|
)
|
|
(20.1
|
)
|
|
(16.0
|
)
|
|
|||
|
Currency translation adjustments
|
0.7
|
|
|
(0.2
|
)
|
|
0.6
|
|
|
|||
|
Balance as of end of period
|
$
|
36.8
|
|
|
$
|
41.3
|
|
|
$
|
42.1
|
|
|
|
Environmental Contingencies
|
Year Ended
|
|||||||
|
February 23, 2018
|
February 24, 2017
|
|||||||
|
Current:
|
|
|
|
|
||||
|
Accrued expenses - other
|
$
|
0.7
|
|
|
$
|
0.6
|
|
|
|
Long-Term:
|
|
|
|
|
||||
|
Other long-term liabilities
|
2.5
|
|
|
3.3
|
|
|
||
|
Total environmental contingencies (discounted)
|
$
|
3.2
|
|
|
$
|
3.9
|
|
|
|
Consolidated Balance Sheets
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Other current assets
|
$
|
2.1
|
|
|
$
|
3.5
|
|
|
|
Accrued expenses
|
(1.4
|
)
|
|
(0.9
|
)
|
|
||
|
Total net fair value of derivative instruments (1)
|
$
|
0.7
|
|
|
$
|
2.6
|
|
|
|
(1)
|
The notional amounts of the outstanding foreign exchange forward contracts were
$95.7
as of
February 23, 2018
and
$101.2
as of
February 24, 2017
.
|
|
Gain (Loss) Recognized in Consolidated Statements of Income
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Cost of sales
|
$
|
2.8
|
|
|
$
|
(1.1
|
)
|
|
$
|
(0.8
|
)
|
|
|
Operating expenses
|
0.6
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
|||
|
Other income, net
|
(4.8
|
)
|
|
1.2
|
|
|
3.0
|
|
|
|||
|
Total net gain (loss)
|
$
|
(1.4
|
)
|
|
$
|
0.9
|
|
|
$
|
1.4
|
|
|
|
3.
|
NEW ACCOUNTING STANDARDS
|
|
4.
|
EARNINGS PER SHARE
|
|
Computation of Earnings per Share
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Net income
|
$
|
80.7
|
|
|
$
|
124.6
|
|
|
$
|
170.3
|
|
|
|
Adjustment for earnings attributable to participating securities
|
(1.5
|
)
|
|
(2.4
|
)
|
|
(3.4
|
)
|
|
|||
|
Net income used in calculating earnings per share
|
$
|
79.2
|
|
|
$
|
122.2
|
|
|
$
|
166.9
|
|
|
|
Weighted-average common shares outstanding including participating securities (in millions)
|
119.2
|
|
|
120.7
|
|
|
124.3
|
|
|
|||
|
Adjustment for participating securities (in millions)
|
(2.3
|
)
|
|
(2.3
|
)
|
|
(2.5
|
)
|
|
|||
|
Shares used in calculating basic earnings per share (in millions)
|
116.9
|
|
|
118.4
|
|
|
121.8
|
|
|
|||
|
Effect of dilutive stock-based compensation (in millions)
|
0.2
|
|
|
0.5
|
|
|
1.0
|
|
|
|||
|
Shares used in calculating diluted earnings per share (in millions)
|
117.1
|
|
|
118.9
|
|
|
122.8
|
|
|
|||
|
Earnings per share:
|
|
|
|
|
|
|
||||||
|
Basic
|
$
|
0.68
|
|
|
$
|
1.03
|
|
|
$
|
1.37
|
|
|
|
Diluted
|
$
|
0.68
|
|
|
$
|
1.03
|
|
|
$
|
1.36
|
|
|
|
Total common shares outstanding at period end (in millions)
|
116.2
|
|
|
117.3
|
|
|
119.4
|
|
|
|||
|
Anti-dilutive performance units excluded from the computation of diluted earnings per share (in millions)
|
0.5
|
|
|
0.3
|
|
|
—
|
|
|
|||
|
5.
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|
Unrealized gain (loss) on investments
|
Pension and other post-retirement liability adjustments
|
Foreign currency translation adjustments
|
Total
|
||||||||||||
|
Balance as of February 26, 2016
|
$
|
0.6
|
|
|
$
|
10.7
|
|
|
$
|
(50.9
|
)
|
|
$
|
(39.6
|
)
|
|
|
Other comprehensive income (loss) before reclassifications
|
(0.5
|
)
|
|
6.8
|
|
|
(12.4
|
)
|
|
(6.1
|
)
|
|
||||
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
(0.4
|
)
|
|
(4.5
|
)
|
|
—
|
|
|
(4.9
|
)
|
|
||||
|
Net other comprehensive income (loss) during period
|
(0.9
|
)
|
|
2.3
|
|
|
(12.4
|
)
|
|
(11.0
|
)
|
|
||||
|
Balance as of February 24, 2017
|
$
|
(0.3
|
)
|
|
$
|
13.0
|
|
|
$
|
(63.3
|
)
|
|
$
|
(50.6
|
)
|
|
|
Other comprehensive income (loss) before reclassifications
|
—
|
|
|
3.0
|
|
|
38.6
|
|
|
41.6
|
|
|
||||
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
(1.3
|
)
|
|
—
|
|
|
(1.3
|
)
|
|
||||
|
Net other comprehensive income (loss) during period
|
—
|
|
|
1.7
|
|
|
38.6
|
|
|
40.3
|
|
|
||||
|
Balance as of February 23, 2018
|
$
|
(0.3
|
)
|
|
$
|
14.7
|
|
|
$
|
(24.7
|
)
|
|
$
|
(10.3
|
)
|
|
|
Detail of Accumulated Other Comprehensive
Income (Loss) Components |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
|
Affected Line in the Consolidated Statements of Income
|
||||||||
|
Year Ended
|
||||||||||
|
February 23,
2018 |
February 24,
2017 |
|||||||||
|
Unrealized gains on investments
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
Other income, net
|
|
|
|
—
|
|
|
0.1
|
|
|
Income tax expense
|
|
||
|
|
—
|
|
|
(0.4
|
)
|
|
Net income
|
|
||
|
Amortization of pension and other post-retirement liability adjustments
|
|
|
|
|
|
|
||||
|
Actuarial losses (gains)
|
(1.7
|
)
|
|
(0.2
|
)
|
|
Cost of sales
|
|
||
|
Actuarial losses (gains)
|
(1.5
|
)
|
|
0.1
|
|
|
Operating expenses
|
|
||
|
Prior service cost (credit)
|
(3.2
|
)
|
|
(4.0
|
)
|
|
Cost of sales
|
|
||
|
Prior service cost (credit)
|
(3.9
|
)
|
|
(4.8
|
)
|
|
Operating expenses
|
|
||
|
Settlements - Actuarial losses (gains)
|
3.9
|
|
|
0.9
|
|
|
Cost of sales
|
|
||
|
Settlements - Actuarial losses (gains)
|
3.2
|
|
|
—
|
|
|
Operating expenses
|
|
||
|
|
1.9
|
|
|
3.5
|
|
|
Income tax expense
|
|
||
|
|
(1.3
|
)
|
|
(4.5
|
)
|
|
Net income
|
|
||
|
Total reclassifications
|
$
|
(1.3
|
)
|
|
$
|
(4.9
|
)
|
|
|
|
|
6.
|
FAIR VALUE
|
|
Fair Value of Financial Instruments
|
February 23, 2018
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Cash and cash equivalents
|
$
|
283.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
283.1
|
|
|
|
Restricted cash
|
2.5
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
||||
|
Foreign exchange forward contracts
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
||||
|
Auction rate securities
|
—
|
|
|
—
|
|
|
3.5
|
|
|
3.5
|
|
|
||||
|
|
$
|
285.6
|
|
|
$
|
2.1
|
|
|
$
|
3.5
|
|
|
$
|
291.2
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign exchange forward contracts
|
$
|
—
|
|
|
$
|
(1.4
|
)
|
|
$
|
—
|
|
|
$
|
(1.4
|
)
|
|
|
|
$
|
—
|
|
|
$
|
(1.4
|
)
|
|
$
|
—
|
|
|
$
|
(1.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fair Value of Financial Instruments
|
February 24, 2017
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Cash and cash equivalents
|
$
|
197.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
197.1
|
|
|
|
Restricted cash
|
2.5
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
||||
|
Managed investment portfolio and other investments
|
|
|
|
|
|
|
|
|
||||||||
|
Corporate debt securities
|
—
|
|
|
33.6
|
|
|
—
|
|
|
33.6
|
|
|
||||
|
U.S. agency debt securities
|
—
|
|
|
18.6
|
|
|
—
|
|
|
18.6
|
|
|
||||
|
Municipal debt securities
|
—
|
|
|
15.1
|
|
|
—
|
|
|
15.1
|
|
|
||||
|
Asset-backed securities
|
—
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
||||
|
U.S. government debt securities
|
2.4
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
||||
|
Foreign exchange forward contracts
|
—
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|
||||
|
Auction rate securities
|
—
|
|
|
—
|
|
|
3.5
|
|
|
3.5
|
|
|
||||
|
|
$
|
202.0
|
|
|
$
|
74.5
|
|
|
$
|
3.5
|
|
|
$
|
280.0
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
|
Foreign exchange forward contracts
|
$
|
—
|
|
|
$
|
(0.9
|
)
|
|
$
|
—
|
|
|
$
|
(0.9
|
)
|
|
|
|
$
|
—
|
|
|
$
|
(0.9
|
)
|
|
$
|
—
|
|
|
$
|
(0.9
|
)
|
|
|
Roll-forward of Fair Value Using Level 3 Inputs
|
Auction Rate
Securities
|
|||
|
Balance as of February 26, 2016
|
$
|
4.4
|
|
|
|
Unrealized loss on investments
|
(0.9
|
)
|
|
|
|
Balance as of February 24, 2017
|
$
|
3.5
|
|
|
|
Unrealized loss on investments
|
—
|
|
|
|
|
Balance as of February 23, 2018
|
$
|
3.5
|
|
|
|
7.
|
INVENTORIES
|
|
Inventories
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Raw materials and work-in-process
|
$
|
98.3
|
|
|
$
|
79.6
|
|
|
|
Finished goods
|
105.3
|
|
|
101.7
|
|
|
||
|
|
203.6
|
|
|
181.3
|
|
|
||
|
Revaluation to LIFO
|
19.0
|
|
|
18.2
|
|
|
||
|
|
$
|
184.6
|
|
|
$
|
163.1
|
|
|
|
8.
|
PROPERTY, PLANT AND EQUIPMENT
|
|
Property, Plant and Equipment
|
Estimated
Useful Lives
(Years)
|
February 23,
2018 |
February 24,
2017 |
|||||||
|
Land
|
|
|
$
|
36.3
|
|
|
$
|
31.7
|
|
|
|
Machinery and equipment
|
3 – 15
|
|
719.2
|
|
|
703.8
|
|
|
||
|
Buildings and improvements
|
10 – 40
|
|
396.7
|
|
|
383.4
|
|
|
||
|
Capitalized software
|
3 – 10
|
|
112.3
|
|
|
104.5
|
|
|
||
|
Furniture and fixtures
|
5 – 8
|
|
58.9
|
|
|
55.9
|
|
|
||
|
Leasehold improvements
|
3 – 15
|
|
74.9
|
|
|
59.0
|
|
|
||
|
Construction in progress
|
|
|
34.9
|
|
|
29.4
|
|
|
||
|
|
|
|
1,433.2
|
|
|
1,367.7
|
|
|
||
|
Accumulated depreciation
|
|
|
(998.1
|
)
|
|
(959.6
|
)
|
|
||
|
|
|
|
$
|
435.1
|
|
|
$
|
408.1
|
|
|
|
9.
|
COMPANY-OWNED LIFE INSURANCE
|
|
Type
|
Ability to Choose
Investments |
Net Return
|
Target Asset Allocation as of February 23, 2018
|
Net Cash Surrender Value
|
|||||||
|
February 23,
2018 |
February 24,
2017 |
||||||||||
|
Whole life
COLI policies
|
No ability
|
A rate of return set periodically by the
insurance companies |
Not applicable
|
$
|
124.3
|
|
|
$
|
125.6
|
|
|
|
Variable life
COLI policies
|
Can allocate across a set of choices provided by the insurance companies
|
Fluctuates depending on performance of underlying investments
|
30% fixed income; 70% equity
|
47.9
|
|
|
43.2
|
|
|
||
|
|
|
|
|
$
|
172.2
|
|
|
$
|
168.8
|
|
|
|
10.
|
GOODWILL & OTHER INTANGIBLE ASSETS
|
|
Goodwill
|
Americas
|
EMEA
|
Other
|
Total
|
||||||||||||
|
Balance as of February 26, 2016
|
$
|
87.9
|
|
|
$
|
—
|
|
|
$
|
18.5
|
|
|
$
|
106.4
|
|
|
|
Currency translation adjustments
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
||||
|
Goodwill
|
89.9
|
|
|
265.0
|
|
|
116.5
|
|
|
471.4
|
|
|
||||
|
Accumulated impairment losses
|
(1.7
|
)
|
|
(265.0
|
)
|
|
(98.0
|
)
|
|
(364.7
|
)
|
|
||||
|
Balance as of February 24, 2017
|
$
|
88.2
|
|
|
$
|
—
|
|
|
$
|
18.5
|
|
|
$
|
106.7
|
|
|
|
Acquisitions (1)
|
31.2
|
|
|
—
|
|
|
—
|
|
|
31.2
|
|
|
||||
|
Currency translation adjustments
|
0.3
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
||||
|
Goodwill
|
121.4
|
|
|
265.0
|
|
|
116.5
|
|
|
502.9
|
|
|
||||
|
Accumulated impairment losses
|
(1.7
|
)
|
|
(265.0
|
)
|
|
(98.0
|
)
|
|
(364.7
|
)
|
|
||||
|
Balance as of February 23, 2018
|
$
|
119.7
|
|
|
$
|
—
|
|
|
$
|
18.5
|
|
|
$
|
138.2
|
|
|
|
(1)
|
In 2018, we acquired AMQ Solutions and certain assets of Tricom Vision Limited resulting in a goodwill addition in the Americas segment. See Note
18
for additional information.
|
|
Other Intangible Assets
|
February 23, 2018
|
February 24, 2017
|
|||||||||||||||||||||||||
|
Weighted
Average Useful Life (Years) |
Gross
|
Accumulated
Amortization |
Net
|
Gross
|
Accumulated
Amortization |
Net
|
|||||||||||||||||||||
|
Intangible assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Proprietary technology
|
8.3
|
|
|
$
|
26.8
|
|
|
$
|
23.4
|
|
|
$
|
3.4
|
|
|
$
|
26.8
|
|
|
$
|
23.0
|
|
|
$
|
3.8
|
|
|
|
Trademarks (1)
|
9.9
|
|
|
11.2
|
|
|
9.9
|
|
|
1.3
|
|
|
9.0
|
|
|
9.0
|
|
|
—
|
|
|
||||||
|
Non-compete agreements
|
6.2
|
|
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
1.6
|
|
|
1.6
|
|
|
—
|
|
|
||||||
|
Dealer relationships (1)
|
11.0
|
|
|
25.5
|
|
|
0.4
|
|
|
25.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
|
Other (1)
|
5.0
|
|
|
12.7
|
|
|
9.7
|
|
|
3.0
|
|
|
9.8
|
|
|
9.6
|
|
|
0.2
|
|
|
||||||
|
|
|
|
77.4
|
|
|
44.6
|
|
|
32.8
|
|
|
47.2
|
|
|
43.2
|
|
|
4.0
|
|
|
|||||||
|
Intangible assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Trademarks and other
|
n/a
|
|
|
12.8
|
|
|
—
|
|
|
12.8
|
|
|
12.8
|
|
|
—
|
|
|
12.8
|
|
|
||||||
|
|
|
|
$
|
90.2
|
|
|
$
|
44.6
|
|
|
$
|
45.6
|
|
|
$
|
60.0
|
|
|
$
|
43.2
|
|
|
$
|
16.8
|
|
|
|
|
(1)
|
In 2018, we acquired AMQ Solutions and certain assets of Tricom Vision Limited resulting in additional intangible assets in the Americas segment. See Note
18
for additional information.
|
|
Fiscal Year Ending in February
|
Amount
|
||
|
2019
|
3.6
|
|
|
|
2020
|
3.4
|
|
|
|
2021
|
3.4
|
|
|
|
2022
|
3.4
|
|
|
|
2023
|
3.3
|
|
|
|
|
$
|
17.1
|
|
|
11.
|
INVESTMENTS IN UNCONSOLIDATED AFFILIATES
|
|
Investments in unconsolidated affiliates
|
February 23, 2018
|
February 24, 2017
|
||||||||||
|
Investment
Balance |
Ownership
Interest |
Investment
Balance |
Ownership
Interest |
|||||||||
|
Equity method investments
|
|
|
|
|
|
|
|
|
||||
|
Dealer relationships
|
$
|
26.0
|
|
|
25%-40%
|
|
$
|
25.2
|
|
|
20%-40%
|
|
|
Manufacturing joint ventures
|
9.4
|
|
|
49%
|
|
8.7
|
|
|
49%
|
|
||
|
IDEO and other
|
6.1
|
|
|
5%-28%
|
|
9.9
|
|
|
10%-35%
|
|
||
|
|
41.5
|
|
|
|
|
43.8
|
|
|
|
|
||
|
Cost method investments
|
|
|
|
|
|
|
|
|
||||
|
Dealer relationship
|
5.8
|
|
|
Less than 10%
|
|
5.8
|
|
|
Less than 10%
|
|
||
|
Other
|
1.1
|
|
|
Less than 10%
|
|
0.9
|
|
|
Less than 10%
|
|
||
|
|
6.9
|
|
|
|
|
6.7
|
|
|
|
|
||
|
Total investments in unconsolidated affiliates
|
$
|
48.4
|
|
|
|
|
$
|
50.5
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Dealer relationships
|
$
|
8.5
|
|
|
$
|
8.0
|
|
|
$
|
6.9
|
|
|
|
Manufacturing joint ventures
|
3.3
|
|
|
1.1
|
|
|
4.8
|
|
|
|||
|
IDEO and other
|
1.0
|
|
|
0.6
|
|
|
1.7
|
|
|
|||
|
Total equity in earnings of unconsolidated affiliates
|
$
|
12.8
|
|
|
$
|
9.7
|
|
|
$
|
13.4
|
|
|
|
Consolidated Balance Sheets
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Total current assets
|
$
|
225.0
|
|
|
$
|
177.3
|
|
|
|
Total non-current assets
|
56.3
|
|
|
37.9
|
|
|
||
|
Total assets
|
$
|
281.3
|
|
|
$
|
215.2
|
|
|
|
Total current liabilities
|
$
|
146.9
|
|
|
$
|
98.6
|
|
|
|
Total long-term liabilities
|
8.7
|
|
|
9.9
|
|
|
||
|
Total liabilities
|
$
|
155.6
|
|
|
$
|
108.5
|
|
|
|
Statements of Income
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Revenue
|
$
|
708.9
|
|
|
$
|
649.1
|
|
|
$
|
635.1
|
|
|
|
Gross profit
|
214.7
|
|
|
182.2
|
|
|
182.1
|
|
|
|||
|
Income before income tax expense
|
54.6
|
|
|
40.8
|
|
|
43.5
|
|
|
|||
|
Net income
|
45.3
|
|
|
36.9
|
|
|
40.4
|
|
|
|||
|
Supplemental Information
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Dividends received from unconsolidated affiliates
|
$
|
10.3
|
|
|
$
|
9.9
|
|
|
$
|
12.5
|
|
|
|
Sales to unconsolidated affiliates
|
254.7
|
|
|
270.0
|
|
|
273.3
|
|
|
|||
|
Amount due from unconsolidated affiliates
|
12.1
|
|
|
10.6
|
|
|
10.6
|
|
|
|||
|
12.
|
SHORT-TERM BORROWINGS AND LONG-TERM DEBT
|
|
Debt Obligations
|
Interest Rate Range as of February 23, 2018
|
Fiscal Year
Maturity Range |
February 23,
2018 |
February 24,
2017 |
||||||||
|
U.S. dollar obligations:
|
|
|
|
|
|
|
|
|
||||
|
Senior notes (1)
|
6.375%
|
|
2021
|
|
$
|
249.1
|
|
|
$
|
248.8
|
|
|
|
Revolving credit facilities (2)(4)
|
|
|
2022
|
|
—
|
|
|
—
|
|
|
||
|
Notes payable (3)
|
2.8%
|
|
2024
|
|
45.4
|
|
|
48.0
|
|
|
||
|
|
|
|
|
|
294.5
|
|
|
296.8
|
|
|
||
|
Foreign currency obligations:
|
|
|
|
|
|
|
|
|
||||
|
Revolving credit facilities (4)
|
|
|
|
|
—
|
|
|
—
|
|
|
||
|
Notes payable
|
6.0% - 9.0%
|
|
|
|
0.3
|
|
|
0.3
|
|
|
||
|
Capitalized lease obligations
|
1.4%
|
|
2020
|
|
0.2
|
|
|
0.3
|
|
|
||
|
Total short-term borrowings and long-term debt
|
|
|
|
|
295.0
|
|
|
297.4
|
|
|
||
|
Short-term borrowings and current portion of long-term debt (5)
|
|
|
|
|
2.8
|
|
|
2.8
|
|
|
||
|
Long-term debt
|
|
|
|
|
$
|
292.2
|
|
|
$
|
294.6
|
|
|
|
(1)
|
We have
$250
of unsecured unsubordinated senior notes, due in February 2021 (“2021 Notes”). The 2021 Notes were issued at
99.953%
of par value. The bond discount of
$0.1
and direct debt issuance costs of
$3.0
were deferred and are being amortized over the life of the 2021 Notes. Although the coupon rate of the 2021 Notes is
6.375%
, the effective interest rate is
6.6%
after taking into account the impact of the direct debt issuance costs, a deferred loss on interest rate locks related to the debt issuance and the bond discount. The 2021 Notes rank equally with all of our other unsecured unsubordinated indebtedness, and they contain no financial covenants. We may redeem some or all of the 2021 Notes at any time. The redemption price would equal the greater of (1) the principal amount of the notes being redeemed; or (2) the present value of the remaining scheduled payments of principal and interest discounted to the redemption date on a semi-annual basis at the comparable U.S. Treasury rate plus 45 basis points; plus, in both cases, accrued and unpaid interest. If the notes are redeemed within 3 months of maturity, the redemption price would be equal to the principal amount of the notes being redeemed plus accrued and unpaid interest. Amortization expense related to the direct debt issuance costs and bond discount on the 2021 Notes was
$0.3
in
2018
,
2017
and
2016
.
|
|
(2)
|
We have a
$125
global committed five-year bank facility which has an interest rate of LIBOR plus an applicable margin and is set to expire in September 2021. As of
February 23, 2018
and
February 24, 2017
, there were no borrowings outstanding under the facility, our availability was not limited, and we were in compliance with all covenants under the facility.
|
|
(3)
|
We have a
$45.4
note payable with an original amount of
$50.0
at a floating interest rate based on
30-day LIBOR
plus
1.20%
. The loan has a term of
seven years
and requires fixed monthly principal payments of
$0.2
on a 20-year amortization schedule with a
$32
balloon payment due in
2024
. The loan is secured by two corporate aircraft, contains no financial covenants and is not cross-defaulted to our other debt facilities.
|
|
(4)
|
We have unsecured uncommitted short-term credit facilities of up to
$2.6
of U.S. dollar obligations and up to
$24.6
of foreign currency obligations with various financial institutions available for working capital purposes as of
February 23, 2018
. Interest rates are variable and determined at the time of borrowing. These credit facilities have no stated expiration date but may be changed or canceled by the banks at any time. There were no borrowings on these facilities as of
February 23, 2018
and
February 24, 2017
.
|
|
(5)
|
The weighted-average interest rate for short-term borrowings and the current portion of long-term debt was
2.8%
as of
February 23, 2018
and
1.8%
as of
February 24, 2017
.
|
|
Fiscal Year Ending in February
|
Amount
|
|||
|
2019
|
$
|
2.8
|
|
|
|
2020
|
2.7
|
|
|
|
|
2021
|
251.7
|
|
|
|
|
2022
|
2.6
|
|
|
|
|
2023
|
2.6
|
|
|
|
|
Thereafter
|
32.6
|
|
|
|
|
|
$
|
295.0
|
|
|
|
•
|
the greatest of the prime rate, the Federal fund effective rate plus 0.5%, and the Eurocurrency rate for a one month interest period plus 1%, plus the applicable margin as set forth in the credit agreement; or
|
|
•
|
the Eurocurrency rate plus the applicable margin as set forth in the credit agreement.
|
|
•
|
A maximum leverage ratio covenant, which is measured by the ratio of (x) indebtedness (as determined under the credit agreement) less unrestricted cash (as determined under the credit agreement) to (y) trailing four quarter Adjusted EBITDA (as determined under the credit agreement) and is required to be no greater than 3:1. (In the context of certain permitted acquisitions, we have a one-time ability, subject to certain conditions, to increase the maximum ratio to 3.25 to 1.0 for four consecutive quarters).
|
|
•
|
A minimum interest coverage ratio covenant, which is measured by the ratio of (y) trailing four quarter Adjusted EBITDA (as determined under the credit agreement) to (z) trailing four quarter interest expense and is required to be no less than 3.5:1.
|
|
13.
|
EMPLOYEE BENEFIT PLAN OBLIGATIONS
|
|
Employee Benefit Plan Obligations (net)
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Defined contribution retirement plans
|
$
|
23.9
|
|
|
$
|
23.8
|
|
|
|
Post-retirement medical benefits
|
43.4
|
|
|
46.0
|
|
|
||
|
Defined benefit pension plans
|
47.0
|
|
|
50.1
|
|
|
||
|
Deferred compensation plans and agreements
|
55.2
|
|
|
49.2
|
|
|
||
|
|
$
|
169.5
|
|
|
$
|
169.1
|
|
|
|
|
|
|
|
|
||||
|
Employee benefit plan assets
|
|
|
|
|
||||
|
Short-term asset
|
$
|
—
|
|
|
$
|
0.2
|
|
|
|
Long-term asset
|
0.5
|
|
|
—
|
|
|
||
|
|
$
|
0.5
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
|
||||
|
Employee benefit plan obligations
|
|
|
|
|
||||
|
Current portion
|
$
|
39.2
|
|
|
$
|
35.0
|
|
|
|
Long-term portion
|
130.8
|
|
|
134.3
|
|
|
||
|
|
$
|
170.0
|
|
|
$
|
169.3
|
|
|
|
Defined Benefit Pension
Plan Obligations |
February 23, 2018
|
February 24, 2017
|
||||||||||||||||||
|
Qualified Plans
|
Non-qualified
Supplemental Retirement Plans |
Qualified Plans
|
Non-qualified
Supplemental Retirement Plans |
|||||||||||||||||
|
Foreign
|
Domestic
|
Foreign
|
||||||||||||||||||
|
Plan assets
|
$
|
33.1
|
|
|
$
|
—
|
|
|
$
|
7.9
|
|
|
$
|
38.8
|
|
|
$
|
—
|
|
|
|
Projected benefit plan obligations
|
47.5
|
|
|
32.6
|
|
|
7.9
|
|
|
55.1
|
|
|
33.8
|
|
|
|||||
|
Funded status
|
$
|
(14.4
|
)
|
|
$
|
(32.6
|
)
|
|
$
|
—
|
|
|
$
|
(16.3
|
)
|
|
$
|
(33.8
|
)
|
|
|
Short-term asset
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
|
Long-term asset
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
Current liability
|
(0.1
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(3.5
|
)
|
|
|||||
|
Long-term liability
|
(14.8
|
)
|
|
(28.8
|
)
|
|
—
|
|
|
(16.4
|
)
|
|
(30.3
|
)
|
|
|||||
|
Total benefit plan obligations
|
$
|
(14.4
|
)
|
|
$
|
(32.6
|
)
|
|
$
|
—
|
|
|
$
|
(16.3
|
)
|
|
$
|
(33.8
|
)
|
|
|
Accumulated benefit obligation
|
$
|
42.5
|
|
|
$
|
32.4
|
|
|
$
|
7.9
|
|
|
$
|
51.0
|
|
|
$
|
33.5
|
|
|
|
|
Defined Benefit
Pension Plans |
Post-Retirement
Plans |
||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 23,
2018 |
February 24,
2017 |
|||||||||||||
|
Change in plan assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Fair value of plan assets, beginning of year
|
$
|
46.7
|
|
|
$
|
47.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Actual return on plan assets
|
2.4
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
||||
|
Employer contributions
|
4.5
|
|
|
6.0
|
|
|
3.4
|
|
|
5.2
|
|
|
||||
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
1.9
|
|
|
2.3
|
|
|
||||
|
Estimated Medicare subsidies received
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
||||
|
Expenses
|
(0.2
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Currency changes
|
3.6
|
|
|
(2.7
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Benefits paid
|
(23.9
|
)
|
|
(8.4
|
)
|
|
(5.4
|
)
|
|
(7.6
|
)
|
|
||||
|
Fair value of plan assets, end of year
|
33.1
|
|
|
46.7
|
|
|
—
|
|
|
—
|
|
|
||||
|
Change in benefit obligations:
|
|
|
|
|
|
|
|
|
||||||||
|
Benefit plan obligations, beginning of year
|
96.8
|
|
|
93.4
|
|
|
46.0
|
|
|
66.2
|
|
|
||||
|
Service cost
|
2.7
|
|
|
2.8
|
|
|
0.2
|
|
|
0.5
|
|
|
||||
|
Interest cost
|
2.1
|
|
|
3.1
|
|
|
1.7
|
|
|
2.8
|
|
|
||||
|
Net actuarial (gain) loss
|
(3.3
|
)
|
|
9.4
|
|
|
(1.2
|
)
|
|
(18.3
|
)
|
|
||||
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
1.9
|
|
|
2.3
|
|
|
||||
|
Medicare subsidies received
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
||||
|
Settlements
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Currency changes
|
5.8
|
|
|
(3.5
|
)
|
|
0.1
|
|
|
—
|
|
|
||||
|
Benefits paid
|
(23.9
|
)
|
|
(8.4
|
)
|
|
(5.4
|
)
|
|
(7.6
|
)
|
|
||||
|
Benefit plan obligations, end of year
|
80.1
|
|
|
96.8
|
|
|
43.4
|
|
|
46.0
|
|
|
||||
|
Funded status
|
$
|
(47.0
|
)
|
|
$
|
(50.1
|
)
|
|
$
|
(43.4
|
)
|
|
$
|
(46.0
|
)
|
|
|
Amounts recognized on the Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
||||||||
|
Short-term asset
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Long-term asset
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Current liability
|
(3.9
|
)
|
|
(3.6
|
)
|
|
(3.5
|
)
|
|
(3.9
|
)
|
|
||||
|
Long-term liability
|
(43.6
|
)
|
|
(46.7
|
)
|
|
(39.9
|
)
|
|
(42.1
|
)
|
|
||||
|
Net amount recognized
|
$
|
(47.0
|
)
|
|
$
|
(50.1
|
)
|
|
$
|
(43.4
|
)
|
|
$
|
(46.0
|
)
|
|
|
Amounts recognized in accumulated other comprehensive income—pretax:
|
|
|
|
|
|
|
|
|
||||||||
|
Actuarial loss (gain)
|
$
|
12.7
|
|
|
$
|
23.4
|
|
|
$
|
(26.0
|
)
|
|
$
|
(28.4
|
)
|
|
|
Prior service credit
|
(0.5
|
)
|
|
(0.7
|
)
|
|
(2.3
|
)
|
|
(9.3
|
)
|
|
||||
|
Total amounts recognized in accumulated other comprehensive income—pretax
|
$
|
12.2
|
|
|
$
|
22.7
|
|
|
$
|
(28.3
|
)
|
|
$
|
(37.7
|
)
|
|
|
Estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year:
|
|
|
|
|
|
|
|
|
||||||||
|
Actuarial loss (gain)
|
$
|
0.3
|
|
|
$
|
7.6
|
|
|
$
|
(3.8
|
)
|
|
$
|
(3.7
|
)
|
|
|
Prior service credit
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(2.3
|
)
|
|
(7.0
|
)
|
|
||||
|
Total amounts recognized in accumulated other comprehensive income—pretax
|
$
|
0.1
|
|
|
$
|
7.4
|
|
|
$
|
(6.1
|
)
|
|
$
|
(10.7
|
)
|
|
|
|
Pension Plans
|
Post-Retirement Plans
|
||||||||||||||||||||||
|
Year Ended
|
Year Ended
|
|||||||||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||||||||
|
Components of expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service cost
|
$
|
2.7
|
|
|
$
|
2.8
|
|
|
$
|
3.1
|
|
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
|
Interest cost
|
2.1
|
|
|
3.1
|
|
|
3.0
|
|
|
1.7
|
|
|
2.8
|
|
|
2.6
|
|
|
||||||
|
Amortization of net loss (gain)
|
0.5
|
|
|
0.7
|
|
|
0.9
|
|
|
(3.7
|
)
|
|
(0.8
|
)
|
|
0.1
|
|
|
||||||
|
Amortization of prior year service credit
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(7.0
|
)
|
|
(8.6
|
)
|
|
(9.0
|
)
|
|
||||||
|
Expected return on plan assets
|
(1.4
|
)
|
|
(1.9
|
)
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
|
Settlement
|
7.1
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
|
Net expense (credit) recognized in Consolidated Statements of Income
|
10.8
|
|
|
5.4
|
|
|
4.3
|
|
|
(8.8
|
)
|
|
(6.1
|
)
|
|
(5.6
|
)
|
|
||||||
|
Other changes in plan assets and benefit obligations recognized in other comprehensive income (pre-tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net actuarial loss (gain)
|
(4.3
|
)
|
|
6.9
|
|
|
(2.4
|
)
|
|
(1.2
|
)
|
|
(18.3
|
)
|
|
(7.0
|
)
|
|
||||||
|
Amortization of gain (loss)
|
(0.5
|
)
|
|
(1.7
|
)
|
|
(0.9
|
)
|
|
3.7
|
|
|
0.8
|
|
|
(0.1
|
)
|
|
||||||
|
Amortization of prior year service credit
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
7.0
|
|
|
8.6
|
|
|
9.0
|
|
|
||||||
|
Losses recognized as part of the curtailment / settlement
|
(7.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
|
Total recognized in other comprehensive income
|
(11.9
|
)
|
|
5.4
|
|
|
(3.1
|
)
|
|
9.5
|
|
|
(8.9
|
)
|
|
1.9
|
|
|
||||||
|
Total recognized in net periodic benefit cost and other comprehensive income (pre-tax)
|
$
|
(1.1
|
)
|
|
$
|
10.8
|
|
|
$
|
1.2
|
|
|
$
|
0.7
|
|
|
$
|
(15.0
|
)
|
|
$
|
(3.7
|
)
|
|
|
Pension and Other Post-Retirement Accumulated Other Comprehensive Income (Loss) Changes
|
Before Tax
Amount
|
Tax (Expense)
Benefit
|
Net of
Tax Amount
|
|||||||||
|
Balance as of February 26, 2016
|
$
|
10.3
|
|
|
$
|
0.4
|
|
|
$
|
10.7
|
|
|
|
Amortization of prior service cost (credit) included in net periodic pension cost
|
(8.7
|
)
|
|
3.4
|
|
|
(5.3
|
)
|
|
|||
|
Net prior service (cost) credit during period
|
(8.7
|
)
|
|
3.4
|
|
|
(5.3
|
)
|
|
|||
|
Net actuarial gain (loss) arising during period
|
11.4
|
|
|
(5.4
|
)
|
|
6.0
|
|
|
|||
|
Amortization of net actuarial (gain) loss included in net periodic pension cost
|
0.8
|
|
|
(0.2
|
)
|
|
0.6
|
|
|
|||
|
Net actuarial gain (loss) during period
|
12.2
|
|
|
(5.6
|
)
|
|
6.6
|
|
|
|||
|
Foreign currency translation adjustments
|
1.2
|
|
|
(0.2
|
)
|
|
1.0
|
|
|
|||
|
Current period change
|
4.7
|
|
|
(2.4
|
)
|
|
2.3
|
|
|
|||
|
Balance as of February 24, 2017
|
$
|
15.0
|
|
|
$
|
(2.0
|
)
|
|
$
|
13.0
|
|
|
|
Amortization of prior service cost (credit) included in net periodic pension cost
|
(7.1
|
)
|
|
2.9
|
|
|
(4.2
|
)
|
|
|||
|
Net prior service (cost) credit during period
|
(7.1
|
)
|
|
2.9
|
|
|
(4.2
|
)
|
|
|||
|
Net actuarial gain (loss) arising during period
|
5.5
|
|
|
(1.5
|
)
|
|
4.0
|
|
|
|||
|
Amortization of net actuarial (gain) loss included in net periodic pension cost
|
(3.2
|
)
|
|
1.4
|
|
|
(1.8
|
)
|
|
|||
|
Gains (losses) recognized as a part of the settlement
|
7.1
|
|
|
(2.4
|
)
|
|
4.7
|
|
|
|||
|
Net actuarial gain (loss) during period
|
9.4
|
|
|
(2.5
|
)
|
|
6.9
|
|
|
|||
|
Foreign currency translation adjustments
|
(1.2
|
)
|
|
0.2
|
|
|
(1.0
|
)
|
|
|||
|
Current period change
|
1.1
|
|
|
0.6
|
|
|
1.7
|
|
|
|||
|
Balance as of February 23, 2018
|
$
|
16.1
|
|
|
$
|
(1.4
|
)
|
|
$
|
14.7
|
|
|
|
Weighted-Average
Assumptions |
Pension Plans
|
Post-Retirement Plans
|
||||||||||||||||
|
Year Ended
|
Year Ended
|
|||||||||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
|||||||||||||
|
Weighted-average assumptions used to determine benefit obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Discount rate
|
2.90
|
%
|
|
2.90
|
%
|
|
3.30
|
%
|
|
3.97
|
%
|
|
3.86
|
%
|
|
4.34
|
%
|
|
|
Rate of salary progression
|
3.60
|
%
|
|
2.70
|
%
|
|
2.30
|
%
|
|
|
|
|
|
|
|
|||
|
Weighted-average assumptions used to determine net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Discount rate
|
2.80
|
%
|
|
3.60
|
%
|
|
3.70
|
%
|
|
3.84
|
%
|
|
4.29
|
%
|
|
3.72
|
%
|
|
|
Expected return on plan assets
|
4.80
|
%
|
|
4.30
|
%
|
|
4.20
|
%
|
|
|
|
|
|
|
|
|||
|
Rate of salary progression
|
3.50
|
%
|
|
2.80
|
%
|
|
2.80
|
%
|
|
|
|
|
|
|
|
|||
|
Health Cost Trend Sensitivity
|
One percentage
point increase |
One percentage
point decrease |
||||||
|
Effect on total of service and interest cost components
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Effect on post-retirement benefit obligation
|
$
|
0.2
|
|
|
$
|
(0.2
|
)
|
|
|
Asset Category
|
February 23, 2018
|
February 24, 2017
|
||||||||||
|
Actual
Allocations |
Target
Allocations |
Actual
Allocations |
Target
Allocations |
|||||||||
|
Equity securities
|
78
|
%
|
|
91
|
%
|
|
50
|
%
|
|
54
|
%
|
|
|
Debt securities
|
17
|
|
|
8
|
|
|
29
|
|
|
27
|
|
|
|
Real estate
|
4
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
Other (1)
|
1
|
|
|
1
|
|
|
19
|
|
|
19
|
|
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
(1)
|
Represents guaranteed insurance contracts, money market funds and cash.
|
|
Fair Value of Pension Plan Assets
|
February 23, 2018
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Cash and cash equivalents
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
|
International
|
—
|
|
|
25.8
|
|
|
—
|
|
|
25.8
|
|
|
||||
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
||||||||
|
Bond funds
|
—
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
||||
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
|
Guaranteed insurance contracts (1)
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|
||||
|
Property and property funds
|
—
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
||||
|
|
$
|
0.2
|
|
|
$
|
32.5
|
|
|
$
|
0.4
|
|
|
$
|
33.1
|
|
|
|
Fair Value of Pension Plan Assets
|
February 24, 2017
|
|||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
Cash and cash equivalents
|
$
|
6.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6.3
|
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
|
International
|
—
|
|
|
23.4
|
|
|
—
|
|
|
23.4
|
|
|
||||
|
Fixed income securities:
|
|
|
|
|
|
|
|
|
||||||||
|
Bond funds
|
—
|
|
|
13.6
|
|
|
—
|
|
|
13.6
|
|
|
||||
|
Other investments:
|
|
|
|
|
|
|
|
|
||||||||
|
Guaranteed insurance contracts (1)
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
|
||||
|
Group annuity contract (2)
|
—
|
|
|
—
|
|
|
1.9
|
|
|
1.9
|
|
|
||||
|
Property funds
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
||||
|
|
$
|
7.1
|
|
|
$
|
37.0
|
|
|
$
|
2.6
|
|
|
$
|
46.7
|
|
|
|
(1)
|
Guaranteed insurance contracts are valued at book value, which approximates fair value, and are calculated using the prior year balance plus or minus investment returns and changes in cash flows.
|
|
(2)
|
Group annuity contracts were valued utilizing a discounted cash flow model. The term “cash flow” refers to the future principal and interest payments we expected to receive on a given asset in the general account. The model projected future cash flows separately for each investment period and each category of investment.
|
|
Roll-forward of Fair Value Using Level 3 Inputs
|
Group
Annuity Contract |
Guaranteed
Insurance Contracts |
||||||
|
Balance as of February 26, 2016
|
$
|
2.0
|
|
|
$
|
1.0
|
|
|
|
Unrealized return on plan assets, including changes in foreign exchange rates
|
0.1
|
|
|
—
|
|
|
||
|
Purchases, sales, and other, net
|
(0.2
|
)
|
|
(0.3
|
)
|
|
||
|
Balance as of Februa
ry 24, 2017
|
$
|
1.9
|
|
|
$
|
0.7
|
|
|
|
Unrealized return on plan assets, including changes in foreign exchange rates
|
—
|
|
|
0.1
|
|
|
||
|
Purchases, sales, and other, net
|
(1.9
|
)
|
|
(0.4
|
)
|
|
||
|
Balance as of Februa
ry 23, 2018
|
$
|
—
|
|
|
$
|
0.4
|
|
|
|
Fiscal Year Ending in February
|
Pension Plans
|
Post-retirement Plans
|
|||||||
|
2019
|
$
|
5.0
|
|
|
$
|
3.6
|
|
|
|
|
2020
|
4.4
|
|
|
3.6
|
|
|
|||
|
2021
|
3.7
|
|
|
3.5
|
|
|
|||
|
2022
|
3.7
|
|
|
3.5
|
|
|
|||
|
2023
|
4.5
|
|
|
3.5
|
|
|
|||
|
2024 - 2028
|
25.6
|
|
|
16.1
|
|
|
|||
|
•
|
Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.
|
|
•
|
If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
|
|
•
|
If a participating employer chooses to stop participating in a multi-employer plan or otherwise has participation in the plan drop below certain levels, that employer may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
|
|
Pension Fund
|
EIN - Pension Plan Number
|
Plan Month / Day End Date
|
Pension Protection Act Zone Status (1)
|
FIP/RP Status Pending / Implemented (2)
|
Contributions
|
Surcharges Imposed or Amortization Provisions
|
|||
|
2017
|
2016
|
2018
|
2017
|
2016
|
|||||
|
Central States, Southeast and Southwest Areas Pension Fund
|
366044243-001
|
12/31
|
Red
|
Red
|
Implemented
|
$0.2
|
$0.3
|
$0.3
|
No
|
|
(1)
|
The most recent Pension Protection Act Zone Status available in
2017
and
2016
relates to the plan's two most recent fiscal year-ends. The zone status is based on information received from the plan certified by the plan’s actuary. Among other factors, red zone status plans are generally less than 65 percent funded and are considered in critical status.
|
|
(2)
|
The FIP/RP Status Pending/Implemented column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented by the trustees of the plan.
|
|
Pension Fund
|
Total Collective Bargaining Agreements
|
Expiration Date (1)
|
% of Associates Under Collective Bargaining Agreement
|
Over 5% Contribution in 2018
|
|
Central States, Southeast and Southwest Areas Pension Fund
|
1
|
3/31/2018
|
0.1%
|
No
|
|
(1)
|
The renewal for the collective bargaining agreement is currently in the negotiation process. In the absence of a renewal agreement, the Central States, Southeast and Southwest Areas Pension Fund will continue to operate under the expired agreement and bill the required rates.
|
|
14.
|
CAPITAL STRUCTURE
|
|
Share repurchases
|
Year ended
|
|||||||||||||
|
February 23,
2018 |
February 24,
2017 |
|||||||||||||
|
Total number of shares
|
Price Paid
|
Total number of shares
|
Price Paid
|
|||||||||||
|
Class A Common Stock
|
2.4
|
|
|
$
|
33.8
|
|
|
3.5
|
|
|
$
|
48.4
|
|
|
|
Class B Common Stock
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
15.
|
INCOME TAXES
|
|
•
|
reduced the U.S. federal corporate income tax rate from 35% to 21%,
|
|
•
|
implemented a one-time tax on the deemed repatriation of undistributed non-U.S. subsidiary earnings and generally eliminated the U.S. federal corporate income taxes on dividends from foreign subsidiaries,
|
|
•
|
included global intangible low-taxed income ("GILTI") provisions, which impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations, and
|
|
•
|
included base-erosion and anti-abuse tax ("BEAT") provisions, which eliminate the deduction of certain base-erosion payments made to related foreign corporations, and imposed a minimum tax if greater than regular tax.
|
|
1)
|
record an estimated provisional amount if the impact of the change can be reasonably estimated, or
|
|
2)
|
continue to apply the accounting guidance that was in effect immediately prior to the Tax Act if the impact of the change cannot be reasonably estimated.
|
|
•
|
We recorded a charge of
$23.9
due to the remeasurement of our deferred taxes. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, the final impact may be affected by other elements related to the Tax Act including, but not limited to, our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences.
|
|
•
|
We recorded a charge of
$4.0
due to the net tax on deemed repatriation of net undistributed earnings of our non-U.S. subsidiaries. In order to finalize the impact of the tax on deemed repatriation, we must determine the amount of earnings of certain foreign subsidiaries as well as the amount of non-U.S. income taxes paid on these earnings. In Q4 2018, we were able to make reasonable estimates of these amounts; however, we are continuing to gather information to more precisely calculate the tax on deemed repatriation.
|
|
Provision for Income Taxes—Expense
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Current income taxes:
|
|
|
|
|
|
|
||||||
|
Federal
|
$
|
15.0
|
|
|
$
|
18.4
|
|
|
$
|
47.7
|
|
|
|
State and local
|
0.8
|
|
|
9.5
|
|
|
12.5
|
|
|
|||
|
Foreign
|
12.1
|
|
|
17.0
|
|
|
12.6
|
|
|
|||
|
|
27.9
|
|
|
44.9
|
|
|
72.8
|
|
|
|||
|
Deferred income taxes:
|
|
|
|
|
|
|
||||||
|
Federal
|
37.9
|
|
|
21.4
|
|
|
(12.7
|
)
|
|
|||
|
State and local
|
7.0
|
|
|
1.2
|
|
|
(3.3
|
)
|
|
|||
|
Foreign
|
8.0
|
|
|
4.2
|
|
|
(52.3
|
)
|
|
|||
|
|
52.9
|
|
|
26.8
|
|
|
(68.3
|
)
|
|
|||
|
Income tax expense
|
$
|
80.8
|
|
|
$
|
71.7
|
|
|
$
|
4.5
|
|
|
|
Source of Income Before Income Tax Expense
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Domestic
|
$
|
120.2
|
|
|
$
|
136.0
|
|
|
$
|
114.9
|
|
|
|
Foreign
|
41.3
|
|
|
60.3
|
|
|
59.9
|
|
|
|||
|
|
$
|
161.5
|
|
|
$
|
196.3
|
|
|
$
|
174.8
|
|
|
|
Income Tax Provision Reconciliation
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Tax expense at the U.S. federal statutory rate
|
$
|
53.2
|
|
|
$
|
68.7
|
|
|
$
|
61.2
|
|
|
|
Impact of the Tax Act (1)
|
27.9
|
|
|
—
|
|
|
—
|
|
|
|||
|
State and local income taxes, net of federal
|
6.7
|
|
|
6.5
|
|
|
6.7
|
|
|
|||
|
Valuation allowance provisions and adjustments (2)
|
0.4
|
|
|
(2.2
|
)
|
|
(59.9
|
)
|
|
|||
|
Foreign investment tax credits (3)
|
(1.6
|
)
|
|
—
|
|
|
(1.5
|
)
|
|
|||
|
COLI income (4)
|
(3.4
|
)
|
|
(3.3
|
)
|
|
(0.7
|
)
|
|
|||
|
Foreign operations, less applicable foreign tax credits (5)
|
1.4
|
|
|
(2.0
|
)
|
|
(1.6
|
)
|
|
|||
|
Impact of change to non-U.S. federal statutory tax rates (6)
|
4.0
|
|
|
9.3
|
|
|
(0.1
|
)
|
|
|||
|
Research tax credit
|
(2.3
|
)
|
|
(1.8
|
)
|
|
(1.9
|
)
|
|
|||
|
Tax reserve adjustments (7)
|
(0.2
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
|||
|
Other
|
(5.3
|
)
|
|
1.8
|
|
|
2.3
|
|
|
|||
|
Total income tax expense recognized
|
$
|
80.8
|
|
|
$
|
71.7
|
|
|
$
|
4.5
|
|
|
|
(1)
|
We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which are generally 21%. Those items that reversed in 2018 were remeasured using a tax rate of
32.9%
. We have recorded a provisional decrease of
$23.9
with respect to the Tax Act in 2018. As required by the Tax Act, we have recorded a provisional tax liability of
$4.0
related to the U.S. federal income
|
|
(2)
|
The valuation allowance provisions were based on current year activity, and the valuation allowance adjustments were based on various factors, which are further detailed below. In Q4 2015, we implemented changes in EMEA to align our tax structure with the management of our globally integrated business. Our U.S. parent company became the principal in a contract manufacturing model with Steelcase European subsidiaries. In Q4 2016, we reached the conclusion that there was sufficient positive evidence, including acceptance of our new tax structure by the U.S. Internal Revenue Service, sustained profitability in our French subsidiaries and other factors, which caused us to reverse valuation allowances of
$56.0
recorded against net deferred tax assets in France.
|
|
(3)
|
Investment tax credits were granted by the Czech Republic for investments in qualifying manufacturing equipment.
|
|
(4)
|
The increase in the cash surrender value of COLI policies, net of normal insurance expenses, plus death benefit gains are non-taxable.
|
|
(5)
|
The foreign operations, less applicable foreign tax credits, amounts include the rate differential between local statutory rates and the U.S. rate on foreign operations.
|
|
(6)
|
Reductions to the French corporate tax rate resulted in the revaluation of certain deferred tax assets of our French tax group, causing increases to income tax expense of
$4.0
and
$7.9
in 2018 and 2017, respectively. During 2017, reductions to the United Kingdom corporate tax rate increased tax expense by
$1.5
.
|
|
(7)
|
Adjustments in 2017 related to a French income tax audit that was settled in 2017
.
|
|
Deferred Income Taxes
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Deferred income tax assets:
|
|
|
|
|
||||
|
Employee benefit plan obligations and deferred compensation
|
$
|
55.8
|
|
|
$
|
108.8
|
|
|
|
Foreign and domestic net operating loss carryforwards
|
55.8
|
|
|
57.0
|
|
|
||
|
Reserves and accruals
|
18.9
|
|
|
29.8
|
|
|
||
|
Tax credit carryforwards
|
31.8
|
|
|
17.4
|
|
|
||
|
Other, net
|
16.1
|
|
|
21.2
|
|
|
||
|
Total deferred income tax assets
|
178.4
|
|
|
234.2
|
|
|
||
|
Valuation allowances
|
(9.5
|
)
|
|
(7.9
|
)
|
|
||
|
Net deferred income tax assets
|
168.9
|
|
|
226.3
|
|
|
||
|
Deferred income tax liabilities:
|
|
|
|
|
||||
|
Property, plant and equipment
|
28.4
|
|
|
40.9
|
|
|
||
|
Intangible assets
|
3.4
|
|
|
3.6
|
|
|
||
|
Prepaid expenses
|
1.7
|
|
|
3.1
|
|
|
||
|
Total deferred income tax liabilities
|
33.5
|
|
|
47.6
|
|
|
||
|
Net deferred income taxes
|
$
|
135.4
|
|
|
$
|
178.7
|
|
|
|
Net deferred income taxes is comprised of the following components:
|
|
|
|
|
||||
|
Deferred income tax assets—non-current
|
135.4
|
|
|
179.6
|
|
|
||
|
Deferred income tax liabilities—non-current
|
—
|
|
|
(0.9
|
)
|
|
||
|
•
|
the nature, frequency and severity of cumulative losses in recent years,
|
|
•
|
the predictability of future income,
|
|
•
|
prudent and feasible tax planning strategies that could be implemented to protect the loss of the deferred tax assets and
|
|
•
|
the effect of reversing taxable temporary differences.
|
|
Income Taxes
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Other current assets:
|
|
|
|
|
||||
|
Income taxes receivable
|
$
|
19.7
|
|
|
$
|
19.0
|
|
|
|
Other long-term assets:
|
|
|
|
|
||||
|
Income taxes receivable
|
$
|
—
|
|
|
$
|
18.5
|
|
|
|
Accrued expenses:
|
|
|
|
|
||||
|
Income taxes payable
|
$
|
8.6
|
|
|
$
|
6.4
|
|
|
|
Fiscal Year Ending February
|
Net Operating Loss
Carryforwards (Gross) |
Net Operating Loss
Carryforwards (Tax Effected) |
Tax Credit
Carryforwards |
|||||||||||||||||||||||||||||
|
Federal
|
State
|
International
|
Federal
|
State
|
International
|
Total
|
||||||||||||||||||||||||||
|
2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
|
$
|
—
|
|
|
|
2023-2038
|
—
|
|
|
17.0
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
31.8
|
|
|
||||||||
|
No expiration
|
—
|
|
|
—
|
|
|
217.7
|
|
|
—
|
|
|
—
|
|
|
53.3
|
|
|
53.3
|
|
|
—
|
|
|
||||||||
|
|
$
|
—
|
|
|
$
|
17.0
|
|
|
$
|
219.7
|
|
|
—
|
|
|
1.9
|
|
|
53.9
|
|
|
55.8
|
|
|
31.8
|
|
|
|||||
|
Valuation allowances
|
|
|
|
|
|
|
—
|
|
|
(0.5
|
)
|
|
(7.3
|
)
|
|
(7.8
|
)
|
|
(1.7
|
)
|
|
|||||||||||
|
Net benefit
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
|
$
|
46.6
|
|
|
$
|
48.0
|
|
|
$
|
30.1
|
|
|
||||||
|
Liability for Uncertain Tax Positions
|
February 23,
2018 |
February 24,
2017 |
||||||
|
Other long-term liabilities
|
$
|
—
|
|
|
$
|
0.2
|
|
|
|
Unrecognized Tax Benefits
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Balance as of beginning of period
|
$
|
2.8
|
|
|
$
|
8.6
|
|
|
$
|
8.8
|
|
|
|
Gross decreases—tax positions in prior period
|
(1.0
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
|||
|
Currency translation adjustment
|
0.4
|
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
|||
|
Balance as of end of period
|
$
|
2.2
|
|
|
$
|
2.8
|
|
|
$
|
8.6
|
|
|
|
16.
|
SHARE-BASED COMPENSATION
|
|
•
|
if at least six months have elapsed following the award date, any performance-based conditions imposed with respect to outstanding awards shall be deemed to be fully earned and a pro rata portion of each such outstanding award granted for all outstanding performance periods shall become payable in shares of Class A Common Stock; and
|
|
•
|
all restrictions imposed on restricted stock units that are not performance-based shall lapse.
|
|
•
|
performance-based conditions imposed on outstanding awards will be deemed to be, immediately prior to the change in control, the greater of (1) the applicable performance achieved through the date of the change in control or (2) the target level of performance; and
|
|
•
|
all restrictions imposed on all outstanding awards of restricted stock units and performance units will lapse if either (1) the awards are assumed by an acquirer or successor and the awardee experiences a qualifying termination during the two year period following the change in control or (2) the awards are not assumed by an acquirer or successor.
|
|
Total Outstanding Awards
|
February 23,
2018 |
||
|
Performance units (1)
|
688,600
|
|
|
|
Restricted stock units
|
1,789,775
|
|
|
|
Total outstanding awards
|
2,478,375
|
|
|
|
(1)
|
This amount includes the maximum number of shares that may be issued under outstanding performance unit awards; however, the actual number of shares which may be issued will be determined based on the satisfaction of certain criteria, and therefore may be significantly lower.
|
|
|
2018 Awards
|
2017 Awards
|
2016 Awards
|
||||||
|
Three-year risk-free interest rate (1)
|
1.4
|
%
|
|
0.9
|
%
|
|
0.8
|
%
|
|
|
Expected term
|
3 years
|
|
|
3 years
|
|
|
3 years
|
|
|
|
Estimated volatility (2)
|
31.8
|
%
|
|
31.2
|
%
|
|
29.4
|
%
|
|
|
(1)
|
Based on the U.S. Government bond benchmark on the grant date.
|
|
(2)
|
Represents the historical price volatility of our Company’s Class A Common Stock for the three-year period preceding the grant date.
|
|
Grant Date Fair Value per TSR PSU
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Weighted-average grant date fair value per share of TSR PSUs granted during 2018, 2017 and 2016
|
$
|
21.76
|
|
|
$
|
16.33
|
|
|
$
|
24.15
|
|
|
|
Performance Units
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Expense
|
$
|
5.0
|
|
|
$
|
5.6
|
|
|
$
|
7.4
|
|
|
|
Tax benefit
|
1.7
|
|
|
2.0
|
|
|
2.7
|
|
|
|||
|
Maximum Number of Nonvested Units
|
Total
|
Weighted-Average
Grant Date
Fair Value per Unit
|
|||||
|
Nonvested as of February 24, 2017
|
916,420
|
|
|
$
|
19.31
|
|
|
|
Granted
|
309,000
|
|
|
21.76
|
|
|
|
|
Vested
|
(536,820
|
)
|
|
21.42
|
|
|
|
|
Nonvested as of February 23, 2018
|
688,600
|
|
|
18.77
|
|
|
|
|
Grant Date Fair Value per Share
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Weighted-average grant date fair value per share of RSUs granted
|
$
|
16.51
|
|
|
$
|
14.66
|
|
|
$
|
18.82
|
|
|
|
Restricted Stock Units
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Expense
|
$
|
13.4
|
|
|
$
|
13.5
|
|
|
$
|
12.9
|
|
|
|
Tax benefit
|
4.5
|
|
|
4.9
|
|
|
4.6
|
|
|
|||
|
Nonvested Units
|
Total
|
Weighted-Average
Grant Date
Fair Value
per Share
|
|||||
|
Nonvested as of February 24, 2017
|
1,731,507
|
|
|
$
|
16.38
|
|
|
|
Granted
|
780,321
|
|
|
16.51
|
|
|
|
|
Vested
|
(688,965
|
)
|
|
18.17
|
|
|
|
|
Forfeited
|
(33,088
|
)
|
|
16.14
|
|
|
|
|
Nonvested as of February 23, 2018
|
1,789,775
|
|
|
15.75
|
|
|
|
|
17.
|
COMMITMENTS
|
|
Fiscal Year Ending in February
|
Minimum annual
rental commitments |
Minimum annual
sublease rental income |
Minimum annual
rental commitments, net |
|||||||||
|
2019
|
$
|
48.5
|
|
|
$
|
(3.7
|
)
|
|
$
|
44.8
|
|
|
|
2020
|
41.4
|
|
|
(3.7
|
)
|
|
37.7
|
|
|
|||
|
2021
|
31.1
|
|
|
(3.3
|
)
|
|
27.8
|
|
|
|||
|
2022
|
27.2
|
|
|
(3.3
|
)
|
|
23.9
|
|
|
|||
|
2023
|
20.1
|
|
|
(2.2
|
)
|
|
17.9
|
|
|
|||
|
Thereafter
|
38.8
|
|
|
(0.8
|
)
|
|
38.0
|
|
|
|||
|
|
$
|
207.1
|
|
|
$
|
(17.0
|
)
|
|
$
|
190.1
|
|
|
|
18.
|
ACQUISITIONS
|
|
Other Intangible Assets
|
February 23, 2018
|
||||||
|
Weighted
Average Useful Life (Years) |
Fair Value
|
||||||
|
Trademarks
|
9.0
|
|
|
$
|
1.3
|
|
|
|
Dealer relationships
|
11.0
|
|
|
25.5
|
|
|
|
|
Other
|
4.6
|
|
|
3.3
|
|
|
|
|
|
|
|
$
|
30.1
|
|
|
|
|
Fiscal Year Ending in February
|
Amount
|
||
|
2019
|
3.2
|
|
|
|
2020
|
3.1
|
|
|
|
2021
|
3.0
|
|
|
|
2022
|
3.0
|
|
|
|
2023
|
3.0
|
|
|
|
|
$
|
15.3
|
|
|
19.
|
REPORTABLE SEGMENTS
|
|
Operating Segment Data
|
Americas
|
EMEA
|
Other
|
Corporate
|
Consolidated
|
|||||||||||||||
|
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
$
|
2,193.8
|
|
|
$
|
524.2
|
|
|
$
|
337.5
|
|
|
$
|
—
|
|
|
$
|
3,055.5
|
|
|
|
Operating income (loss)
|
187.0
|
|
|
(14.0
|
)
|
|
18.4
|
|
|
(35.4
|
)
|
|
156.0
|
|
|
|||||
|
Total assets
|
943.2
|
|
|
300.3
|
|
|
209.1
|
|
|
406.6
|
|
|
1,859.2
|
|
|
|||||
|
Capital expenditures
|
46.2
|
|
|
31.7
|
|
|
10.0
|
|
|
—
|
|
|
87.9
|
|
|
|||||
|
Depreciation & amortization
|
46.2
|
|
|
14.7
|
|
|
5.0
|
|
|
—
|
|
|
65.9
|
|
|
|||||
|
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
$
|
2,231.9
|
|
|
$
|
503.9
|
|
|
$
|
296.6
|
|
|
$
|
—
|
|
|
$
|
3,032.4
|
|
|
|
Operating income (loss)
|
245.2
|
|
|
(20.9
|
)
|
|
13.0
|
|
|
(37.1
|
)
|
|
200.2
|
|
|
|||||
|
Total assets
|
960.7
|
|
|
297.4
|
|
|
191.1
|
|
|
342.8
|
|
|
1,792.0
|
|
|
|||||
|
Capital expenditures
|
35.9
|
|
|
20.6
|
|
|
4.6
|
|
|
—
|
|
|
61.1
|
|
|
|||||
|
Depreciation & amortization
|
42.7
|
|
|
12.7
|
|
|
4.9
|
|
|
—
|
|
|
60.3
|
|
|
|||||
|
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
$
|
2,256.0
|
|
|
$
|
520.6
|
|
|
$
|
283.4
|
|
|
$
|
—
|
|
|
$
|
3,060.0
|
|
|
|
Operating income (loss)
|
265.2
|
|
|
(64.3
|
)
|
|
11.2
|
|
|
(37.5
|
)
|
|
174.6
|
|
|
|||||
|
Total assets
|
981.1
|
|
|
332.6
|
|
|
179.9
|
|
|
315.0
|
|
|
1,808.6
|
|
|
|||||
|
Capital expenditures
|
71.2
|
|
|
14.7
|
|
|
7.5
|
|
|
—
|
|
|
93.4
|
|
|
|||||
|
Depreciation & amortization
|
48.5
|
|
|
11.7
|
|
|
5.5
|
|
|
—
|
|
|
65.7
|
|
|
|||||
|
Reportable Geographic Data
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Revenue:
|
|
|
|
|
|
|
||||||
|
United States
|
$
|
2,039.6
|
|
|
$
|
2,104.4
|
|
|
$
|
2,152.7
|
|
|
|
Foreign locations
|
1,015.9
|
|
|
928.0
|
|
|
907.3
|
|
|
|||
|
|
$
|
3,055.5
|
|
|
$
|
3,032.4
|
|
|
$
|
3,060.0
|
|
|
|
Long-lived assets:
|
|
|
|
|
|
|
||||||
|
United States
|
$
|
689.7
|
|
|
$
|
655.8
|
|
|
$
|
633.8
|
|
|
|
Foreign locations
|
174.3
|
|
|
130.8
|
|
|
127.8
|
|
|
|||
|
|
$
|
864.0
|
|
|
$
|
786.6
|
|
|
$
|
761.6
|
|
|
|
Product Category Data
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Systems and storage
|
$
|
1,402.0
|
|
|
$
|
1,428.2
|
|
|
$
|
1,533.4
|
|
|
|
Seating
|
919.2
|
|
|
917.8
|
|
|
938.9
|
|
|
|||
|
Other (1)
|
734.3
|
|
|
686.4
|
|
|
587.7
|
|
|
|||
|
Total
|
$
|
3,055.5
|
|
|
$
|
3,032.4
|
|
|
$
|
3,060.0
|
|
|
|
(1)
|
Other consists primarily of consolidated dealers, textiles and surface materials, worktools, architecture, technology, other uncategorized product lines and services, none of which are individually greater than 10% of consolidated revenue.
|
|
20.
|
RESTRUCTURING ACTIVITIES
|
|
Restructuring Costs
|
Year Ended
|
|||||||
|
February 24,
2017 |
February 26,
2016 |
|||||||
|
Cost of sales
|
|
|
|
|
||||
|
Americas
|
$
|
2.6
|
|
|
$
|
2.4
|
|
|
|
EMEA
|
1.6
|
|
|
10.9
|
|
|
||
|
Other
|
—
|
|
|
—
|
|
|
||
|
|
4.2
|
|
|
13.3
|
|
|
||
|
Operating expenses
|
|
|
|
|
||||
|
Americas
|
—
|
|
|
(2.9
|
)
|
|
||
|
EMEA
|
0.9
|
|
|
9.5
|
|
|
||
|
Other
|
—
|
|
|
—
|
|
|
||
|
|
0.9
|
|
|
6.6
|
|
|
||
|
|
$
|
5.1
|
|
|
$
|
19.9
|
|
|
|
Restructuring Reserve
|
Workforce
Reductions
|
Business Exits
and Related
Costs
|
Total
|
|||||||||
|
Reserve balance as of February 27, 2015
|
$
|
13.7
|
|
|
$
|
1.6
|
|
|
$
|
15.3
|
|
|
|
Additions
|
14.5
|
|
|
8.2
|
|
|
22.7
|
|
|
|||
|
Payments
|
(17.8
|
)
|
|
(8.0
|
)
|
|
(25.8
|
)
|
|
|||
|
Adjustments
|
(0.4
|
)
|
|
(1.0
|
)
|
|
(1.4
|
)
|
|
|||
|
Reserve balance as of February 26, 2016
|
$
|
10.0
|
|
|
$
|
0.8
|
|
|
$
|
10.8
|
|
|
|
Additions
|
0.3
|
|
|
4.8
|
|
|
5.1
|
|
|
|||
|
Payments
|
(5.7
|
)
|
|
(4.3
|
)
|
|
(10.0
|
)
|
|
|||
|
Adjustments
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
|||
|
Reserve balance as of February 24, 2017
|
$
|
4.3
|
|
|
$
|
1.0
|
|
|
$
|
5.3
|
|
|
|
Payments
|
(3.3
|
)
|
|
(0.9
|
)
|
|
(4.2
|
)
|
|
|||
|
Adjustments
|
0.7
|
|
|
(0.1
|
)
|
|
0.6
|
|
|
|||
|
Reserve balance as of February 23, 2018
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
|
21.
|
UNAUDITED QUARTERLY RESULTS
|
|
Unaudited Quarterly Results
|
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
Total
|
|||||||||||||||
|
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
$
|
735.1
|
|
|
$
|
775.6
|
|
|
$
|
772.1
|
|
|
$
|
772.7
|
|
|
$
|
3,055.5
|
|
|
|
Gross profit
|
242.8
|
|
|
258.4
|
|
|
251.8
|
|
|
253.1
|
|
|
1,006.1
|
|
|
|||||
|
Operating income
|
29.9
|
|
|
54.2
|
|
|
38.5
|
|
|
33.4
|
|
|
156.0
|
|
|
|||||
|
Net income
|
18.1
|
|
|
36.9
|
|
|
25.7
|
|
|
—
|
|
|
80.7
|
|
|
|||||
|
Basic earnings per share
|
0.15
|
|
|
0.31
|
|
|
0.22
|
|
|
—
|
|
|
0.68
|
|
|
|||||
|
Diluted earnings per share
|
0.15
|
|
|
0.31
|
|
|
0.22
|
|
|
—
|
|
|
0.68
|
|
|
|||||
|
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenue
|
$
|
718.8
|
|
|
$
|
758.0
|
|
|
$
|
786.5
|
|
|
$
|
769.1
|
|
|
$
|
3,032.4
|
|
|
|
Gross profit
|
229.8
|
|
|
263.1
|
|
|
261.9
|
|
|
255.6
|
|
|
1,010.4
|
|
|
|||||
|
Operating income
|
33.3
|
|
|
61.9
|
|
|
54.6
|
|
|
50.4
|
|
|
200.2
|
|
|
|||||
|
Net income
|
19.4
|
|
|
38.2
|
|
|
41.2
|
|
|
25.8
|
|
|
124.6
|
|
|
|||||
|
Basic earnings per share
|
0.16
|
|
|
0.32
|
|
|
0.34
|
|
|
0.22
|
|
|
1.03
|
|
|
|||||
|
Diluted earnings per share
|
0.16
|
|
|
0.31
|
|
|
0.34
|
|
|
0.21
|
|
|
1.03
|
|
|
|||||
|
Item 9.
|
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure:
|
|
Item 9A.
|
Controls and Procedures:
|
|
Item 9B.
|
Other Information:
|
|
Item 10.
|
Directors, Executive Officers and Corporate Governance:
|
|
Item 11.
|
Executive Compensation:
|
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters:
|
|
Plan Category
|
Number of securities to be issued upon exercise
of outstanding warrants and rights
|
Weighted-average
exercise price of
outstanding
warrants and rights
|
Number of securities
remaining available for
future issuance under
equity compensation
plans
(excluding securities
reflected in the
second column)
|
|||||||
|
Equity compensation plans approved by security holders
|
2,478,375
|
|
(1)
|
|
n/a
|
(2)
|
|
7,101,070
|
|
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
|
n/a
|
|
|
—
|
|
|
|
Total
|
2,478,375
|
|
|
|
n/a
|
|
|
7,101,070
|
|
|
|
(1)
|
This amount includes outstanding restricted stock units and the maximum number of shares that may be issued under outstanding performance units.
|
|
(2)
|
The weighted average exercise price excludes performance units and restricted stock units, as there is no exercise price associated with these awards. The only outstanding warrants or rights are performance units and restricted stock units.
|
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence:
|
|
Item 14.
|
Principal Accounting Fees and Services:
|
|
Item 15.
|
Exhibits, Financial Statement Schedules:
|
|
•
|
Management’s Report on Internal Control Over Financial Reporting
|
|
•
|
Reports of Independent Registered Public Accounting Firm
|
|
•
|
Consolidated Statements of Income
for the Years Ended
February 23, 2018
,
February 24, 2017
and
February 26, 2016
|
|
•
|
Consolidated Statements of Comprehensive Income for the Years Ended
February 23, 2018
,
February 24, 2017
and
February 26, 2016
|
|
•
|
Consolidated Balance Sheets as of
February 23, 2018
and
February 24, 2017
|
|
•
|
Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended
February 23, 2018
,
February 24, 2017
and
February 26, 2016
|
|
•
|
Consolidated Statements of Cash Flows for the Years Ended
February 23, 2018
,
February 24, 2017
and
February 26, 2016
|
|
•
|
Notes to the Consolidated Financial Statements
|
|
Item 16.
|
Form 10-K Summary:
|
|
|
STEELCASE INC.
|
|
|
|
|
|
|
|
By:
|
/s/ M
ARK
T. M
OSSING
|
|
|
|
Mark T. Mossing
Corporate Controller and
Chief Accounting Officer
(Duly Authorized Officer and
Principal Accounting Officer)
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ J
AMES
P. K
EANE
|
|
President and Chief Executive Officer, Director (Principal Executive Officer)
|
|
April 10, 2018
|
|
James P. Keane
|
|
|
|
|
|
|
|
|
|
|
|
/s/ D
AVID
C. S
YLVESTER
|
|
Senior Vice President, Chief Financial
Officer (Principal Financial Officer)
|
|
April 10, 2018
|
|
David C. Sylvester
|
|
|
|
|
|
|
|
|
|
|
|
/s/ M
ARK
T. M
OSSING
|
|
Corporate Controller and Chief Accounting
Officer (Principal Accounting Officer)
|
|
April 10, 2018
|
|
Mark T. Mossing
|
|
|
|
|
|
|
|
|
|
|
|
/s/ L
AWRENCE
J. B
LANFORD
|
|
Director
|
|
April 10, 2018
|
|
Lawrence J. Blanford
|
|
|
|
|
|
|
|
|
|
|
|
/s/ T
IMOTHY
C.E. B
ROWN
|
|
Director
|
|
April 10, 2018
|
|
Timothy C.E. Brown
|
|
|
|
|
|
|
|
|
|
|
|
/s/ C
ONNIE
K. D
UCKWORTH
|
|
Director
|
|
April 10, 2018
|
|
Connie K. Duckworth
|
|
|
|
|
|
|
|
|
|
|
|
/s/ D
AVID
W. J
OOS
|
|
Director
|
|
April 10, 2018
|
|
David W. Joos
|
|
|
|
|
|
|
|
|
|
|
|
/s/ T
ODD
P. K
ELSEY
|
|
Director
|
|
April 10, 2018
|
|
Todd P. Kelsey
|
|
|
|
|
|
|
|
|
|
|
|
/s/ J
ENNIFER
C. N
IEMANN
|
|
Director
|
|
April 10, 2018
|
|
Jennifer C. Niemann
|
|
|
|
|
|
|
|
|
|
|
|
/s/ R
OBERT
C. P
EW
III
|
|
Chair of the Board of Directors, Director
|
|
April 10, 2018
|
|
Robert C. Pew III
|
|
|
|
|
|
|
|
|
|
|
|
/s/ C
ATHY
D. R
OSS
|
|
Director
|
|
April 10, 2018
|
|
Cathy D. Ross
|
|
|
|
|
|
|
|
|
|
|
|
/s/ P
ETER
M. W
EGE
II
|
|
Director
|
|
April 10, 2018
|
|
Peter M. Wege II
|
|
|
|
|
|
|
|
|
|
|
|
/s/ P. C
RAIG
W
ELCH
, J
R.
|
|
Director
|
|
April 10, 2018
|
|
P. Craig Welch, Jr.
|
|
|
|
|
|
|
|
|
|
|
|
/s/ K
ATE
P
EW
W
OLTERS
|
|
Director
|
|
April 10, 2018
|
|
Kate Pew Wolters
|
|
|
|
|
|
Allowance for Losses on Accounts Receivable
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Balance as of beginning of period
|
$
|
11.2
|
|
|
$
|
11.7
|
|
|
$
|
14.6
|
|
|
|
Additions:
|
|
|
|
|
|
|
||||||
|
Charged to costs and expenses
|
2.5
|
|
|
4.5
|
|
|
5.5
|
|
|
|||
|
Charged to other accounts
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
|||
|
Deductions (1)
|
(3.0
|
)
|
|
(5.2
|
)
|
|
(7.8
|
)
|
|
|||
|
Other adjustments (2)
|
0.5
|
|
|
0.2
|
|
|
(0.6
|
)
|
|
|||
|
Balance as of end of period
|
$
|
11.1
|
|
|
$
|
11.2
|
|
|
$
|
11.7
|
|
|
|
(1)
|
Primarily represents excess of accounts written off over recoveries.
|
|
(2)
|
Primarily represents currency translation adjustments.
|
|
Valuation Allowance for Deferred Income Tax Assets
|
Year Ended
|
|||||||||||
|
February 23,
2018 |
February 24,
2017 |
February 26,
2016 |
||||||||||
|
Balance as of beginning of period
|
$
|
7.9
|
|
|
$
|
10.6
|
|
|
$
|
72.7
|
|
|
|
Additions:
|
|
|
|
|
|
|
||||||
|
Charged to costs and expenses
|
1.9
|
|
|
(1.8
|
)
|
|
(58.3
|
)
|
|
|||
|
Charged to other accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
|||
|
Deductions and expirations
|
(1.1
|
)
|
|
(0.4
|
)
|
|
(1.5
|
)
|
|
|||
|
Other adjustments (1)
|
0.8
|
|
|
(0.5
|
)
|
|
(2.3
|
)
|
|
|||
|
Balance as of end of period
|
$
|
9.5
|
|
|
$
|
7.9
|
|
|
$
|
10.6
|
|
|
|
(1)
|
Primarily represents currency translation adjustments.
|
|
Exhibit
No.
|
|
Description
|
|
3.1
|
|
|
|
3.2
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
4.3
|
|
|
|
10.1
|
|
|
|
10.2
|
|
|
|
10.3
|
|
|
|
10.4
|
|
|
|
10.5
|
|
|
|
10.6
|
|
|
|
10.7
|
|
|
|
10.8
|
|
|
|
10.9
|
|
|
|
10.10
|
|
|
|
10.11
|
|
|
|
10.12
|
|
|
|
10.13
|
|
|
|
10.14
|
|
|
|
10.15
|
|
|
|
10.16
|
|
|
|
10.17
|
|
|
|
10.18
|
|
|
|
10.19
|
|
|
|
10.20
|
|
|
|
10.21
|
|
|
|
10.22
|
|
|
|
10.23
|
|
|
|
10.24
|
|
|
|
10.25
|
|
|
|
10.26
|
|
|
|
10.27
|
|
|
|
10.28
|
|
|
|
Exhibit
No.
|
|
Description
|
|
10.29
|
|
|
|
10.30
|
|
|
|
10.31
|
|
|
|
10.32
|
|
|
|
10.33
|
|
|
|
10.34
|
|
|
|
10.35
|
|
|
|
10.36
|
|
|
|
21.1
|
|
|
|
23.1
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
101.SCH
|
|
XBRL Schema Document
|
|
101.CAL
|
|
XBRL Calculation Linkbase Document
|
|
101.LAB
|
|
XBRL Labels Linkbase Document
|
|
101.PRE
|
|
XBRL Presentation Linkbase Document
|
|
101.DEF
|
|
XBRL Definition Linkbase Document
|
|
(1)
|
Filed as Exhibit 3.1 to the Company’s Form 8-K, as filed with the Commission on July 15, 2011 (commission file number 001-13873), and incorporated herein by reference.
|
|
(2)
|
Filed as Exhibit No 3.2 to the Company's Form 10-K for the fiscal year ended February 28, 2014 as filed with the Commission on April 17, 2014 (commission file number 001-13873), and incorporated herein by reference.
|
|
(3)
|
Filed as Exhibit No. 4.1 to the Company’s Form 8-K, as filed with the Commission on August 7, 2006 (commission file number 001-13873), and incorporated herein by reference.
|
|
(4)
|
Filed as Exhibit No. 4.2 to the Company’s Form 8-K, as filed with the Commission on February 3, 2011 (commission file number 001-13873), and incorporated herein by reference.
|
|
(5)
|
Filed as Exhibit No. 4.3 to the Company’s Form 8-K, as filed with the Commission on February 3, 2011 (commission file number 001-13873), and incorporated herein by reference.
|
|
(6)
|
Filed as Exhibit No. 10.1 to the Company's Form 8-K, as filed with the Commission on September 28, 2016 (commission file number 001-13873), and incorporated herein by reference.
|
|
(7)
|
Filed as Exhibit No. 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 28, 2008, as filed with the Commission on January 7, 2009 (commission file number 001-13873), and incorporated herein by reference.
|
|
(8)
|
Filed as Exhibit No. 10.2 to the Company's Form 8-K, as filed with the Commission on January 16, 2015 (commission file number 001-13873), and incorporated herein by reference.
|
|
(9)
|
Filed as Exhibit No. 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 28, 2015, as filed with the Commission on September 29, 2015 (commission file number 001-13873), and incorporated herein by reference.
|
|
(10)
|
Filed as Exhibit No. 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 25, 2017, as filed with the Commission on September 20, 2017 (commission file number 001-13873), and incorporated herein by reference.
|
|
(11)
|
Filed as Exhibit No. 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended November 28, 2008, as filed with the Commission on January 7, 2009 (commission file number 001-13873), and incorporated herein by reference.
|
|
(12)
|
Filed as Exhibit No. 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended November 28, 2008, as filed with the Commission on January 7, 2009 (commission file number 001-13873), and incorporated herein by reference.
|
|
(13)
|
Filed as Exhibit No. 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended August 24, 2012, as filed with the Commission on October 1, 2012 (commission file number 001-13873), and incorporated herein by reference.
|
|
(14)
|
Filed as Exhibit No. 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended November 28, 2014, as filed with the Commission on December 23, 2014 (commission file number 001-13873), and incorporated herein by reference.
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|