Restructuring Activities

6 Months Ended

Aug. 26, 2011

11. RESTRUCTURING ACTIVITIES

In Q2 2012, we announced the closure of our Morocco manufacturing facility within our EMEA segment, and we incurred $5.8 of employee termination costs and $0.1 of business exit and other related costs.

In Q2 2012, we completed the sale of PolyVision's remaining low margin whiteboard fabrication business in Europe to a third party which resulted in a loss of $1.1 recorded in the Other category.

In Q4 2011, we announced the planned closure of three additional manufacturing facilities in North America as part of our ongoing efforts to improve the fitness of our business and strengthen the Company's long-term competitiveness. We are in the process of moving production within these facilities to other Steelcase locations in North America and expect the manufacturing consolidation to continue through fiscal year 2013. We currently estimate the cash restructuring costs associated with these actions will be approximately $40, with approximately $30 related to workforce reductions and approximately $10 related to costs associated with manufacturing consolidation and production moves. During the three and six months ended August 26, 2011, we accrued restructuring costs of $4.9 and $12.1, respectively. During 2011, we incurred restructuring costs of $10.1 related to these plant closures. These costs primarily related to workforce reductions and were recorded within the Americas segment.

In Q1 2011, we announced a project to reorganize our European manufacturing operations on the basis of specialized competencies. This project is now substantially complete, and total restructuring costs approximated $20. The majority of these costs related to workforce reductions and some additional costs for manufacturing consolidation and production moves within the EMEA segment. For the six months ended August 26, 2011, the restructuring costs primarily related to contingencies associated with a former plant in France, which was sold in Q4 2010.

Restructuring costs are summarized in the following table:

	Three Months Ended		Six Months Ended
	August 26,	August 27,	August 26,	August 27,
Restructuring Costs	2011	2010	2011	2010
Cost of sales
Americas	$ 5.2	$ 1.9	$ 12.5	$ 3.3
EMEA	5.1	9.7	7.8	9.7
Other	1.1	0.1	1.1	0.2
	11.4	11.7	21.4	13.2
Operating expenses
Americas	-	0.7	-	0.7
EMEA	0.8	(0.1)	0.8	0.1
Other	0.1	0.7	-	1.5
	0.9	1.3	0.8	2.3
	$ 12.3	$ 13.0	$ 22.2	$ 15.5

Below is a summary of the net additions, payments and adjustments to the restructuring reserve balance for the six months ended August 26, 2011:

		Business Exits
	Workforce	and Related
Restructuring Reserve	Reductions	Costs	Total
Reserve balance as of February 25, 2011	$ 25.7	$ 1.3	$ 27.0
Additions	18.4	3.8	22.2
Payments	(23.2)	(3.1)	(26.3)
Adjustments	0.8	0.1	0.9
Reserve balance as of August 26, 2011	$ 21.7	$ 2.1	$ 23.8

The workforce reductions reserve balance as of August 26, 2011 primarily relates to the employee termination costs related to the Q1 2011 and Q4 2011 announcements.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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