Note 8

JOINT VENTURES AND DEALER TRANSITIONS

The Company's investments in and advances to its unconsolidated joint ventures and dealer transitions are summarized as follows:

(1) See Note 20 regarding the April 22, 1999 acquisition by the Company of the remaining 50% equity interest in the joint venture from Strafor Facom S.A.

During 1999 and 1998, foreign currency translation adjustments of $5.0 million and $(11.1) million, respectively, resulting from foreign currency denominated assets and liabilities of Steelcase Strafor and related fluctuations in exchange rates, were charged directly to accumulated other comprehensive income, a separate component of shareholders' equity in the accompanying consolidated balance sheets. In December 1998, the Company issued a note receivable to Steelcase Strafor in the amount of $66.4 million to equalize lending levels between Steelcase Inc. and Strafor Facom S.A. and fund in part the acquisition of Werndl BüroMöbeL AG ("Werndl") by the joint venture. Werndl is the second largest wood office furniture manufacturer in Germany with annual net sales in excess of $115 million.

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 $25.0 million and $23.6 million as of February 26, 1999 and February 27, 1998, respectively.

Other joint ventures and alliances include Steelcase Jeraisy Ltd. ("Jeraisy"), the Modernform Group Public Company Limited, Clestra Hauserman and Microfield Graphics. With the exception of Jeraisy, all of the other joint ventures and alliances occurred in 1999.

The Company's equity in net income of joint ventures and dealer transitions consists of:

Summarized financial information for Steelcase Strafor, as of December 31, 1998 and 1997 and the three years ended December 31, 1998, is as follows:

(1) Steelcase Strafor net sales and operating income have been adjusted from amounts previously reported in order to conform the classifications of certain sales deductions and other charges with those reflected in the Company's consolidated financial statements. These reclassifications were identified in connection with the Company's April 22,1999 acquisition of Strafor Facom's 50% equity interest in Steelcase Strafor. See Note 20.