Steelcase
Inc.
Notes
to Consolidated Financial Statements
Note 6
Joint Ventures and Dealer Transitions
The Company’s investments in and advances to its unconsolidated joint ventures and dealer transitions are summarized as follows:
| (in millions) | ||||
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| February 27, 1998 | February 28, 1997 |
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| Investment in Steelcase Strafor | $ | 101.8 | $ | 107.3 |
| Investments in dealer transitions | 9.6 | 16.3 | ||
| Other joint ventures and alliances | 4.5 | 2.5 |
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| $ | 115.9 | $ | 126.1 |
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During 1998 and 1997, translation adjustments of $(11.1) million and $(0.2) million, respectively, resulting from foreign currency denominated assets and liabilities of Steelcase Strafor and related fluctuations in exchange rates, were charged directly to a component of shareholders’ equity in the accompanying consolidated balance sheets.
Investments in dealer transitions represent dealers which the Company has acquired with the intention of reselling as soon as practicable. Accordingly, the Company recognizes its share of earnings and losses from dealer transitions pursuant to the equity method of accounting. Accounts and notes receivable from these dealers approximated $23.6 million and $57.0 million as of February 27, 1998 and February 28, 1997, respectively.
The Company’s equity in net income of joint ventures and dealer transitions consists of:
| (in millions) | ||||||
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| Year Ended | February 27, 1998 | February 28, 1997 | February 23, 1996 | |||
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| 50% share of Steelcase | ||||||
| Strafor net income | $ | 5.6 | $ | 2.0 | $ | 3.9 |
| Net income (loss) of | ||||||
| dealer transitions | 2.0 | (1.7) | — | |||
| Other joint ventures, net | 0.3 | (0.3) | 0.1 | |||
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| $ | 7.9 | $ | — | $ | 4.0 | |
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Summarized financial information for Steelcase Strafor, as of December 31, 1997 and 1996 and the three years ended December 31, 1997, is as follows:
| (in millions) | ||||
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| December 31, | 1997 | 1996 | ||
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| Balance Sheet: | ||||
| Current assets | $ | 268.7 | $ | 278.9 |
| Property and equipment | 126.5 | 148.7 | ||
| Other assets | 99.4 | 103.0 | ||
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| Total assets | 494.6 | 530.6 | ||
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| Current liabilities | 197.9 | 229.3 | ||
| Long-term liabilities | 93.2 | 85.0 | ||
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| Total liabilities | 291.1 | 314.3 | ||
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| Net assets | $ | 203.5 | $ | 216.3 |
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| (in millions) | ||||||
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| Year Ended December 31, | 1997 | 1996 | 1995 | |||
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| Results of Operations: | ||||||
| Revenues | $ | 487.0 | $ | 494.9 | $ | 471.1 |
| Operating income | 27.7 | 27.6 | 25.0 | |||
| Net income | 11.2 | 4.0 | 7.8 | |||
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