XML 52 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Restructuring Activities
 12 Months Ended
Feb. 28, 2014
Restructuring Activities [Abstract]  
Restructuring Activities
RESTRUCTURING ACTIVITIES
In Q4 2014, we recognized a $4.5 gain related to the sale of a facility in the EMEA segment in connection with previously announced restructuring actions.
In Q3 2014, we announced restructuring actions in EMEA to safeguard our global competitiveness through changes in our EMEA manufacturing footprint. We have initiated procedures related to the closure of a manufacturing facility in Germany and the establishment of a new manufacturing location in the Czech Republic. In connection with this project, we expect to incur approximately $20 to $25 of cash restructuring costs, with approximately $15 to $20 related to employee termination costs and approximately $5 related to business exit and other related costs. We incurred $0.7 of business exit and other related costs in the EMEA segment in connection with these actions in 2014.
In Q1 2014, we announced restructuring actions in EMEA to reorganize the sales, marketing and support functions in France. In Q2 2014, we completed negotiations with the works councils related to these actions. We currently estimate the cash restructuring costs associated with these actions will approximate $9, with approximately $8 related to employee termination costs and approximately $1 of business exit and other related costs. We incurred $6.3 of employee termination costs, $0.9 of business exit and other related costs related to these actions in 2014.
In Q4 2013, we recognized a $12.4 impairment charge in the Americas segment in conjunction with the previously announced closure of our Corporate Development Center. The impairment charge was calculated as the amount by which the carrying value of the building exceeded its fair value as of February 22, 2013. The fair value of the building was based on a third-party appraisal which included an evaluation of quoted market prices for similar properties.
In Q4 2013, we completed restructuring actions in EMEA to consolidate owned dealers and eliminate 60 full-time equivalent positions. These eliminations resulted from local actions taken by a few countries and included attrition, expiration of fixed-term, temporary contracts and workforce reductions. We incurred $3.8 related to these restructuring actions in 2013.
In Q2 2013, we announced plans to integrate PolyVision's global technology business into the Steelcase Education Solutions group. We incurred $0.9 of business exit and other related costs in the Americas segment related to this restructuring plan during 2014. We incurred $1.4 of employee termination costs and $0.6 of business exit and other related costs in the Americas segment in 2013. These restructuring actions are complete.
In Q2 2012, we announced the closure of our Morocco manufacturing facility within our EMEA segment. In conjunction with the closure, we recorded $6.8 of employee termination costs, $0.3 of business exit and other related costs, and a $4.1 gain related to the sale of the facility. These restructuring actions are complete.
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 net loss of $0.9 recorded in the Other category during 2012.
In Q4 2011, we announced the planned closure of three additional manufacturing facilities in North America. This project is now complete. The restructuring costs associated with these actions were $41.0, with $28.4 related to workforce reductions and $12.6 related to costs associated with manufacturing consolidation and production moves. During 2013 and 2012, we incurred $4.2 and $14.3 of employee termination costs, respectively. During 2013 and 2012, we incurred $8.8 and $3.6 of business exit and other related costs, respectively.
Restructuring costs are summarized in the following table:
Restructuring Costs
Year Ended
February 28,
2014
February 22,
2013
February 24,
2012
Cost of sales
 
 
 
 
 
 
Americas
$
0.7

 
$
13.9

 
$
20.0

 
EMEA
(3.6
)
 
1.0

 
5.0

 
Other
0.1

 
—

 
1.2

 
 
(2.8
)
 
14.9

 
26.2

 
Operating expenses
 
 
 
 
 
 
Americas
1.0

 
14.7

 
1.5

 
EMEA
8.2

 
4.0

 
3.0

 
Other
0.2

 
1.1

 
(0.2
)
 
 
9.4

 
19.8

 
4.3

 
 
$
6.6

 
$
34.7

 
$
30.5

 

Below is a summary of the charges, payments and adjustments to the restructuring reserve balance during 2014, 2013 and 2012:
Restructuring Reserve
Workforce  
Reductions  
Business Exits  
and Related  
Costs  
Total  
Reserve balance as of February 25, 2011
$
25.7

 
$
1.3

 
$
27.0

 
Additions
25.6

 
4.9

 
30.5

 
Payments
(38.2
)
 
(6.9
)
 
(45.1
)
 
Adjustments
(0.2
)
 
5.4

 
5.2

 
Reserve balance as of February 24, 2012
$
12.9

 
$
4.7

 
$
17.6

 
Additions
11.5

 
23.2

 
34.7

 
Payments
(16.4
)
 
(24.1
)
 
(40.5
)
 
Adjustments
(0.2
)
 
(0.5
)
 
(0.7
)
 
Reserve balance as of February 22, 2013
$
7.8

 
$
3.3

 
$
11.1

 
Additions
7.4

 
3.7

 
11.1

 
Payments
(6.8
)
 
(5.6
)
 
(12.4
)
 
Adjustments
(0.7
)
 
0.6

 
(0.1
)
 
Reserve balance as of February 28, 2014
$
7.7

 
$
2.0

 
$
9.7

 

The workforce reductions reserve balance as of February 28, 2014 primarily relates to restructuring actions in EMEA. The adjustments to the business exits and related costs in 2012 primarily relate to a $4.1 gain associated with the sale of a facility in Morocco.