Note 18

OPERATING SEGMENTS

Effective for the year ended February 26, 1999, the Company adopted SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information. In accordance with SFAS No. 131, the Company operates on a worldwide basis within a single reportable segment, the office furniture industry. The office furniture segment includes several consolidated operating segments and one joint venture that manufacture an extensive range of steel and wood office furniture products. The nature of the products, production processes, types of customers and methods of distribution are consistent across segments and therefore have been aggregated into one reported segment. The Company's primary product lines include office furniture systems, seating, storage solutions, desks and casegoods, and interior architectural products. Net sales derived from services and other businesses primarily include marine accessories and design, financial and consulting services.

The Company evaluates performance and allocates resources based on net income or loss. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies included elsewhere herein. Management views interest income, interest expense, and certain other non-operating costs as being associated with the office furniture segment since this segment is the Company's primary activity and accounts for the majority of the Company's net sales, assets and net income.

The following sets forth reportable segment data reconciled to the consolidated financial statements for the three years ended February 26, 1999, February 27, 1998, and February 28, 1997:

Office furniture reflects the accounts of Steelcase Strafor, the Company's 50% owned joint venture in Europe, as if the joint venture had been consolidated in each of the years 1999, 1998 and 1997. These combined results do not give effect to the April 22, 1999 acquisition of the remaining 50% equity interest from Strafor Facom S.A. and the resulting adjustments reflected in the unaudited pro forma data presented in Note 20. Eliminations include the removal of Steelcase Strafor data in order to reconcile with consolidated totals.

Total assets within services and other businesses includes notes receivable and leased assets as described in Note 7.

Reportable geographic information is as follows:

(1) Excludes Steelcase Strafor, the Company's 50% owned joint venture in Europe.

Net sales are attributable to countries based on the location of the customer.