Restructuring Activities

3 Months Ended

May 25, 2012

RESTRUCTURING ACTIVITIES

In Q4 2011, we announced the planned closure of three 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 will be substantially complete by the end of 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 months ended May 25, 2012, we incurred $1.3 of employee termination costs and $3.2 of business exit and other related costs. During 2012 and 2011, we incurred restructuring costs related to these plant closures of $17.9 and $10.1, respectively. These costs primarily related to workforce reductions and were recorded within the Americas segment.

Restructuring costs are summarized in the following table:



	Three Months Ended
Restructuring Costs	May 25, 2012		May 27, 2011
Cost of sales
Americas	$	4.7	$	7.3
EMEA	0.4		2.7
Other	—		—
	5.1		10.0
Operating expenses
Americas	—		—
EMEA	—		—
Other	—		(0.1		)
	—		(0.1		)
Total	$	5.1	$	9.9

Below is a summary of the net additions, payments and adjustments to the restructuring reserve balance for the three months ended May 25, 2012:



Restructuring Reserve	Workforce Reductions			Business Exits and Related Costs			Total
Reserve balance as of February 24, 2012	$	12.9		$	4.7		$	17.6
Additions	1.6			3.5			5.1
Payments	(7.1		)	(3.7		)	(10.8		)
Adjustments	(0.2		)	(0.1		)	(0.3		)
Reserve balance as of May 25, 2012	$	7.2		$	4.4		$	11.6

The workforce reductions reserve balance as of May 25, 2012 primarily relates to estimated employee termination costs associated with the Q4 2011 announcement.

- 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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