What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-04-22 compared with 2021-04-22 · 172 added, 143 removed, 974 unchanged (24% of the section changed)

17 unchanged sentences

We have audited the accompanying consolidated balance sheets of Apogee Enterprises, Inc.

and subsidiaries (the "Company") as of February 27, 2021 and February 29, 2020, and the related consolidated results of operations, statements of comprehensive earnings, cash flows, and shareholders' equity, for each of the three years in the period ended February 27, 2021, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements").

and subsidiaries (the "Company") as of February 26, 2022 and February 27, 2021, and the related consolidated results of operations, statements of comprehensive earnings, cash flows, and shareholders' equity, for each of the three years in the period ended February 26, 2022, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of February 26, 2022 and February 27, 2021, and the results of its operations and its cash flows for each of the three years in the period ended February 26, 2022, in conformity with accounting principles generally accepted in the United States of America.

19 unchanged sentences

The Company measures progress on these contracts following an input method, by comparing total costs incurred to-date to the total estimated costs for the contract and recording that proportion of the total contract price as revenue.

audit effort due to the complexity of long-term contracts and a high degree of auditor judgment when performing audit procedures and evaluating the results of those procedures.

Given the judgments necessary to estimate total costs and profit for the contract performance obligations used to recognize revenue for long-term, fixed-price contracts in the Architectural Services segment, auditing such estimates required extensive audit effort due to the complexity of long-term contracts and a high degree of auditor judgment when performing audit procedures and evaluating the results of those procedures.

How the Critical Audit Matter Was Addressed in the Audit

13 unchanged sentences

• Comparing management’s estimates for the selected contracts to costs and profit of similar performance obligations, when applicable.

Goodwill — EFCO and Sotawall Reporting Units — Refer to Notes 1 and 6 to the consolidated financial statements

Goodwill — Window and Wall Systems Reporting Unit — Refer to Notes 1 and 6 to the consolidated financial statements

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value.

The Company estimates the fair value of its reporting units using both the income approach and the market approach.

The income approach uses a discounted cash flow methodology that involves significant judgement and projections of future performance, including future revenues, future operating expenses, and discount rates.

The income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance, including future revenues, future operating expenses, and discount rates.

Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, or both.

As of the measurement date in the fourth quarter of fiscal 2021, driven by a decline in market conditions partially due to COVID-19 and the ongoing uncertainty within the Company’s end markets in a post-COVID environment, the EFCO and Sotawall reporting units were each determined to have a carrying value in excess of their fair value, resulting in goodwill impairment charges of $46.7 million and $17.1 million, respectively.

As of February 27, 2021, the Company's total goodwill balance was $130.1 million.

Given the significant judgments made by management to estimate the fair value of the EFCO and Sotawall reporting units, performing audit procedures to evaluate the reasonableness of management's estimates and assumptions related to selection of future revenues, future operating expenses, and discount rates required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

The Company’s goodwill balance was $130 million as of February 26, 2022, of which $55.6 million relates to the Window and Wall Systems reporting unit.

The fair value of the Window and Wall Systems reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was identified.

Given the significant judgments made by management to estimate the fair value of the Window and Wall Systems reporting unit, performing audit procedures to evaluate the reasonableness of management's estimates and assumptions related to selection of future revenues, future operating expenses, and discount rates required a high degree of auditor judgment and an increased extent of effort.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to future revenues, future operating expenses, and discount rates used by management to estimate the fair value of the EFCO and Sotawall reporting units included the following, among others:

Our audit procedures related to future revenues, future operating expenses, and discount rates used by management to estimate the fair value of the Window and Wall Systems reporting unit included the following, among others:

• We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over the determination of the fair value of the reporting units, such as controls related to management's selection of future revenues, future operating expenses, and discount rates.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate, including testing the source information underlying the determination of the discount rate, testing the mathematical accuracy of the calculation, and developing a range of independent estimates and comparing those to the discount rate selected by management.

• We evaluated the reasonableness of management’s forecasts by comparing the forecasts to (1) historical results, (2) internal communications to management and the Board of Directors, (3) industry information, and (4) forecasted information included in Company press releases as well as in analyst and industry reports of the Company.

included in Company press releases as well as in analyst and industry reports of the Company.

• We evaluated management’s ability to accurately forecast future revenue and future operating expenses by comparing actual results to management’s historical forecasts.

66 unchanged sentences

Retained earnings 254,825 357,243

Common stock held in trust ( 186 ) ( 685 )

Deferred compensation obligations 186 685

Accumulated other comprehensive loss ( 26,240 ) ( 28,027 )

3 unchanged sentences

CONSOLIDATED RESULTS OF OPERATIONS

(In thousands, except per share data) February 27, 2021 February 29, 2020 March 2, 2019

(In thousands, except per share data) February 26, 2022 February 27, 2021 February 29, 2020

Net sales $ 1,313,977 $ 1,230,774 $ 1,387,439

5 unchanged sentences

Interest expense, net 3,767 4,408 8,814

Other income (expense), net 1,492 716 ( 528 )

Other (expense) income, net ( 4,409 ) 1,492 716

Earnings before income taxes 13,869 22,611 79,750

7 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(In thousands) February 27, 2021 February 29, 2020 March 2, 2019

(In thousands) February 26, 2022 February 27, 2021 February 29, 2020

Net earnings $ 3,486 $ 15,436 $ 61,914

Other comprehensive earnings (loss):

Unrealized gain on marketable securities, net of $ 22 , $ 67 and $ 17 of tax expense, respectively

Unrealized (loss) gain on marketable securities, net of $( 96 ), $ 22 and $ 67 of tax (benefit) expense, respectively

( 360 ) 80 257

Unrealized gain (loss) on foreign currency hedge, net of $ 633 , $ 450 and $( 129 ) of tax expense (benefit), respectively

7 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) February 27, 2021 February 29, 2020 March 2, 2019

(In thousands) February 26, 2022 February 27, 2021 February 29, 2020

Operating Activities

4 unchanged sentences

Deferred income taxes ( 7,956 ) ( 6,460 ) 10,463

Asset impairment on property, plant and equipment 21,497 1,400 —

Gain on disposal of assets ( 20,987 ) ( 20,044 ) ( 2,197 )

Impairment expense on goodwill and intangible assets 49,473 70,069 —

Proceeds from new markets tax credit transaction, net of deferred costs — — 8,850

Noncash lease expense 12,418 12,235 12,420

16 unchanged sentences

Other, net — ( 141 ) ( 1,673 )

Net cash used by investing activities ( 2,147 ) ( 47,038 ) ( 53,696 )

Net cash provided (used) by investing activities 9,283 ( 2,147 ) ( 47,038 )

Financing Activities

2 unchanged sentences

Payments on line of credit — ( 246,340 ) ( 406,500 )

Proceeds from exercise of stock options 4,115 1,456 —

Repurchase and retirement of common stock ( 100,414 ) ( 32,878 ) ( 25,140 )

2 unchanged sentences

Net cash used by financing activities ( 120,572 ) ( 107,876 ) ( 74,514 )

Increase (decrease) in cash, cash equivalents and restricted cash 31,840 ( 14,290 ) 10,401

(Decrease) increase in cash, cash equivalents and restricted cash ( 10,818 ) 31,840 ( 14,290 )

Effect of exchange rates on cash 1,124 485 1

8 unchanged sentences

Net earnings — — — 61,914 — — — 61,914

Cumulative effect adjustment — — — 2,999 — — — 2,999

Unrealized gain on marketable securities, net of $ 67 tax expense

2 unchanged sentences

— — — — — — ( 423 ) ( 423 )

Unrealized gain on pension obligation, net of $ 72 tax expense

Unrealized loss on pension obligation, net of $ 124 tax benefit

— — — — — — ( 405 ) ( 405 )

Foreign currency translation adjustments — — — — — — ( 1,364 ) ( 1,364 )

Reclassification of tax effects — — — 737 — — ( 737 ) —

Issuance of stock, net of cancellations 174 57 ( 124 ) 225 70 ( 70 ) — 158

Share-based compensation — — 6,607 — — — — 6,607

Exercise of stock options 19 6 177 — — — — 183

Share repurchases ( 687 ) ( 229 ) ( 3,963 ) ( 20,948 ) — — — ( 25,140 )

2 unchanged sentences

— — — ( 18,714 ) — — — ( 18,714 )

Balance at March 2, 2019 27,015 $ 9,005 $ 151,842 $ 367,597 $ ( 755 ) $ 755 $ ( 32,127 ) $ 496,317

Balance at February 29, 2020 26,443 $ 8,814 $ 154,016 $ 388,010 $ ( 685 ) $ 685 $ ( 34,062 ) $ 516,778

Net earnings — — — 15,436 — — — 15,436

1 unchanged sentence

— — — — — — 80 80

Unrealized loss on foreign currency hedge, net of $ 129 tax benefit

Unrealized gain on foreign currency hedge, net of $ 450 tax expense

— — — — — — 1,475 1,475

Unrealized loss on pension obligation, net of $ 124 tax benefit

Unrealized gain on pension obligation, net of $ 32 tax expense

— — — — — — 105 105

2 unchanged sentences

Share-based compensation — — 8,573 — — — — 8,573

Exercise of stock options 127 42 1,414 — — — — 1,456

Share repurchases ( 1,177 ) ( 393 ) ( 7,144 ) ( 25,341 ) — — — ( 32,878 )

4 unchanged sentences

Net earnings — — — 3,486 — — — 3,486

Unrealized gain on marketable securities, net of $ 22 tax expense

Unrealized loss on marketable securities, net of $ 96 tax benefit

— — — — — — ( 360 ) ( 360 )

26 unchanged sentences

Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying consolidated results of operations to maintain consistency and comparability between periods presented.

These reclassifications had no impact on previously reported operating income or net earnings within the consolidated results of operations.

Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of cash flows to conform to current year presentation.

Cash equivalents

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Impairment of long-lived assets

Long-lived assets or asset groups, including definite-lived intangible assets ("intangible assets") subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances such as asset utilization, physical change, legal factors or other matters indicate that the carrying value of those assets may not be recoverable.

When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, an asset impairment expense is recognized in earnings in the

period such a determination is made.

Long-lived assets or asset groups, including finite-lived intangible assets ("intangible assets") subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances such as asset utilization, physical change, legal factors or other matters indicate that the carrying value of those assets may not be recoverable.

The amount of the impairment expense recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value based on discounted cash flows.

During the third quarter of fiscal 2022, an impairment of $ 3.0 million was recognized within other (expense) income within the consolidated results of operations related to a minority equity investment held by the Company which represents a write-down of the entire investment in the company.

During the fourth quarter of fiscal 2022, based on the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, we determined that the finite-lived intangible assets were impaired as of February 26, 2022.

As such, a long-lived asset impairment charge of $ 36.7 million in finite-lived intangible assets was recognized in the fourth quarter of fiscal year 2022 within the Architectural Framing Systems segment.

As a result of restructuring plans announced during the second quarter of fiscal 2022, asset impairments on property plant and equipment and leases in the amount of $ 21.5 million were recorded for the year ended February 26, 2022.

Goodwill and intangible assets

6 unchanged sentences

A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by segment management on a regular basis.

During the third quarter of fiscal 2021, we combined two reporting units into one reporting unit, following certain structural and leadership changes at the Company, specifically within the Architectural Framing Systems segment.

Within this segment, as a result of integration efforts that are ongoing, leadership over the Tubelite and Alumicor reporting units has been combined and functional leaders in areas such as operations, sales, marketing and administration are responsible for allocating resources and reviewing results of the combined business.

The goodwill of the individual reporting units was therefore aggregated to the combined reporting unit.

We evaluated goodwill on a qualitative basis prior to and subsequent to this change and concluded that no adjustment to the carrying value of goodwill was necessary as a result of this change.

In addition, no qualitative indicators of impairment were identified during the third quarter of fiscal 2021, and therefore, no interim quantitative goodwill impairment evaluation was performed.

Following this change, we have eight reporting units, six of which have goodwill.

If the fair value of a reporting unit exceeds the carrying value, goodwill impairment is not indicated.

If the carrying amount of a reporting unit is determined to be higher than its estimated fair value, the excess is recognized as an impairment expense.

During the third quarter of fiscal 2022, we combined certain reporting units to form two reporting units, following certain structural and leadership changes at the Company, specifically within the Architectural Framing Systems segment.

Within this segment, as a result of integration efforts that are ongoing, leadership over our Wausau, EFCO and Sotawall reporting units were combined to form the Window and Wall Systems reporting unit, and our Linetec and Tubelite reporting units were combined to form the Storefront and Finishing Solutions reporting unit.

With these organizational changes, Architectural Framing Systems segment management regularly reviews and evaluates the results of the Window and Wall Systems and Storefront and Finishing Solutions reporting units.

Additionally, functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the Window and Wall Systems and Storefront and Finishing Solutions reporting units.

The goodwill of the five individual pre-integration reporting units was aggregated to the respective combined reporting units.

We evaluated goodwill on a qualitative basis prior to and subsequent to this change and concluded no adjustment to the carrying value of goodwill was necessary as a result of this change.

With the above noted changes, our reporting units for our fiscal 2022 annual impairment test were determined to be Window and Wall Systems, Storefront and Finishing Solutions, Viracon, Harmon and Tru Vue.

We estimate the fair value of a reporting unit using both the income approach and the market approach.

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The assessment of fair value involves significant judgment and projections about future performance.

Definite-lived intangible assets are amortized based on estimated useful lives ranging from 18 months to 30 years and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Finite-lived intangible assets are amortized based on estimated useful lives ranging from 18 months to 30 years and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

The estimated useful lives of all intangible assets are reviewed annually, and we have determined that the remaining lives were appropriate.

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We establish a reserve for estimated ultimate losses on reported claims and those incurred but not yet reported utilizing actuarial projections.

Reserves are classified within other current liabilities or long-term self-insurance reserves based on expectations of when the estimated loss will be paid.

Additionally, we maintain a self-insurance reserve for health insurance programs offered to eligible employees, included within accrued self-insurance reserves.

Reserves are classified within other current liabilities or non-current self-insurance reserves based on expectations of when the estimated loss will be paid.

Additionally, we maintain a self-insurance reserve for health insurance programs offered to eligible employees, included within other current liabilities on the consolidated balance sheets.

The reserve includes an estimate for losses on reported claims as well as for amounts incurred but not yet reported, based on historical trends.

19 unchanged sentences

Revenue recognition

On March 4, 2018, we adopted ASC 606, Revenue from Contracts with Customers , and as a result, made updates to our significant accounting policy for revenue recognition.

Our significant accounting policy for revenue recognition follows ASC 606, Revenue from Contracts with Customers .

We generate revenue from the design, engineering and fabrication of architectural glass, curtainwall, window, storefront and entrance systems, and from installing those products on commercial buildings.

2 unchanged sentences

During fiscal 2022 , approximately 42 percent of our total revenue is recognized at the time products are shipped from our manufacturing facilities, which is when control is transferred to our customer, consistent with past practices.

These businesses

do not generate contract-related assets or liabilities.

These businesses do not generate contract-related assets or liabilities.

Variable consideration associated with these contracts and orders, generally related to early pay discounts or volume rebates, is not considered significant.

34 unchanged sentences

Costs we incur for shipping and handling are reported as cost of sales.

Restructuring

During the second quarter of fiscal 2022, we announced plans to realign and simplify our business structure which resulted in the closure of two facilities within the Architectural Glass segment, in Dallas, Texas and Statesboro, Georgia.

These closures were made in order to concentrate this segment on premium, high-performance products.

Additionally, employee termination costs were incurred related to these facility closures, realignment of the Architectural Framing Systems segment, and within the Corporate office.

The actions associated with this announced plan continued through fiscal 2022 and are expected be substantially completed in the first quarter of fiscal 2023.

Refer to additional information in Note 16.

Research and development

8 unchanged sentences

Subsequent to the end of the year, we purchased 1,571,139 shares of stock under our authorized share repurchase program, at a total cost of $ 74.3 million.

Starting in the first quarter of fiscal 2023, based on the Company's planned integration of Sotawall into the Architectural Services segment, the Company expects that the results of the Sotawall business will be reported as part of the Architectural Services segment.

Adoption of new accounting standards

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which revises guidance for the accounting for credit losses on financial instruments within its scope.

The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including accounts receivable, and modifies the impairment model for available-for-sale debt securities.

We adopted this standard at the beginning of fiscal 2021, following the modified retrospective application approach.

Additionally, the new guidance makes targeted improvements to the impairment model for certain available-for-sale debt securities, including eliminating the concept of "other than temporary" from that model.

The portion of the guidance related to available-for-sale debt securities was adopted following a prospective approach.

The adoption of this ASU did not have a significant impact on earnings or financial condition.

Refer to additional disclosures in Notes 2 and 4.

Accounting standards not yet adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740):

At the beginning of fiscal 2022, we adopted the guidance in ASU 2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes .

The amendments in this ASU removed exceptions on intraperiod tax allocations and reporting and provided simplification on accounting for franchise taxes, tax basis goodwill and tax law changes.

We are evaluating the expected impact these amendments will have on our consolidated financial statements, but the impact is not expected to be significant.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

The amendments in this ASU removed exceptions on intra-period tax allocations and reporting and provided simplification on accounting for franchise taxes, tax basis goodwill and tax law changes.

The adoption of this ASU did not have a significant impact on the consolidated financial statements.

At the beginning of fiscal 2022, we adopted the guidance in ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting .

The amendments in this ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting.

The amendments in this ASU provide optional expedients and exceptions for applying U.S.

GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

We are evaluating the expected impact these amendments and reference rate reform will have on our consolidated financial statements and various contracts but the impact is not expected to be significant.

The adoption of this ASU did not have a significant impact on the consolidated financial statements.

Revenue, Receivables and Contract Assets and Liabilities

The following table disaggregates total revenue by timing of recognition (see Note 15 for disclosure of revenue by segment):

(In thousands) February 27, 2021 February 29, 2020 March 2, 2019

(In thousands) February 26, 2022 February 27, 2021 February 29, 2020

Recognized at shipment $ 551,252 $ 504,583 $ 610,049

31 unchanged sentences

Contract liabilities 11,373 25,000

The decrease in contract assets was due to a reduction in costs and earnings in excess of billings, which is driven by the settlement of matters related to a legacy EFCO project, as well as the timing of projects.

The change in contract liabilities was due to timing of project activity from businesses that operate under long-term contracts.

The change in contract assets and contract liabilities was due to timing of project activity from businesses that operate under long-term contracts.

Other contract-related disclosures

9 unchanged sentences

Within two years

Beyond 67,946

Beyond two years

Total $ 789,824

11 unchanged sentences

Accrued self-insurance reserves 8,796 6,482

Accrued freight 2,078 1,477

Other 28,939 20,895

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These derivative instruments are recorded within our consolidated balance sheets within other current assets and liabilities.

Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive income.

Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive loss.

Fair value measurements

12 unchanged sentences

Cash surrender value of life insurance — 17,831 17,831

Foreign currency forward/option contract — 606 606

Aluminum hedging contract — 2,133 2,133

Deferred compensation — 13,507 13,507

Interest rate swap contract — 718 718

Deferred compensation — 12,491 12,491

Foreign currency forward/option contract — 161 161

February 27, 2021

Money market funds $ 26,034 $ — $ 26,034

Commercial paper — 1,500 1,500

Municipal and corporate bonds — 12,893 12,893

Cash surrender value of life insurance — 18,632 18,632

Deferred compensation — 14,042 14,042

Foreign currency forward/option contract — 606 606

Aluminum hedging contract — 363 363

Deferred compensation — 13,507 13,507

Interest rate swap contract — 504 504

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In the event any of these assets were to become impaired, we would recognize an impairment expense equal to the amount by which the carrying value of the reporting unit, impaired asset or asset group exceeds its estimated fair value.

Fair value measurements of reporting units are estimated using an income approach involving discounted cash flow models that contain certain Level 3 inputs requiring significant management judgment, including projections of economic conditions, customer demand and changes in competition, revenue growth rates, gross profit margins, operating margins, capital expenditures, working capital requirements, terminal growth rates and discount rates.

Fair value measurements of reporting units are estimated using an income approach

involving discounted cash flow models that contain certain Level 3 inputs requiring significant management judgment, including projections of economic conditions, customer demand and changes in competition, revenue growth rates, gross profit margins, operating margins, capital expenditures, working capital requirements, terminal growth rates and discount rates.

Fair value measurements of the reporting units associated with our goodwill balances and our indefinite-lived intangible assets are estimated at least annually in the fourth quarter of each fiscal year for purposes of impairment testing if a quantitative analysis is performed.

See Note 1 and Note 6 for additional information on the impairment charges recorded to goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal 2021.

Fair value measurements for long-lived assets or asset groups, including intangible assets subject to amortization, property and equipment and right-of-use lease assets, are valued using undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets.

See Note 1 and Note 6 for additional information on the impairment charges recorded to goodwill, indefinite- and finite-lived intangible assets during the fourth quarter of fiscal 2022 and 2021.

See Note 16 for additional information on the impairment charges recorded to property, plant and equipment during fiscal 2022.

Property, Plant and Equipment

6 unchanged sentences

Total property, plant and equipment 654,566 716,058

Less accumulated depreciation ( 417,615 ) ( 387,311 )

accumulated depreciation 404,571 417,615

Net property, plant and equipment $ 249,995 $ 298,443

Depreciation expense was $ 42.2 million, $ 43.9 million, and $ 36.1 million in fiscal 2022, 2021, and 2020, respectively.

In September 2020, we sold a building in McCook, IL within our LSO segment for $ 25.1 million.

The carrying value of the building was $ 4.3 million, and we recognized a gain on this sale of approximately $ 19.3 million, net of associated transaction costs, which is included as a reduction of selling, general and administrative expenses within our consolidated statements of operations.

We entered into a separate operating lease agreement for this facility, which commenced in September 2020.

Refer to Note 8 for related lease disclosures.

During fiscal 2021, we closed seven facilities within our Architectural Framing Systems segment, exited certain leases for those facilities, and provided certain termination benefits to employees across the company, resulting in restructuring-related costs of $ 5.8 million, of which $ 5.2 million is included within cost of sales and $ 0.6 million is included within selling, general and administrative expenses within our consolidated statements of operations.

Certain amounts associated with the restructuring expense incurred during fiscal 2021 are accrued as of year-end within accrued payroll and related costs and other current liabilities in the consolidated balance sheets, and are expected to be paid within the next fiscal year.

(In thousands) Architectural Framing Other Total

Balance at February 29, 2020 $ — $ — $ —

Restructuring expense 5,281 554 5,835

Payments ( 716 ) ( 163 ) ( 879 )

Other adjustments ( 739 ) — ( 739 )

Balance at February 27, 2021 $ 3,826 $ 391 $ 4,217

Goodwill and Other Intangible Assets

2 unchanged sentences

We evaluate goodwill for impairment annually as of the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate the carrying value of goodwill may not be recoverable.

Based on the impairment analysis performed in the fourth quarter, estimated fair value was in excess of carrying value at six of our eight reporting units.

However, estimated fair value did not exceed carrying value for two reporting units within the Architectural Framing Systems segment, EFCO and Sotawall.

For these reporting units, we utilized a weighted-average cost of capital of 12.1 percent in determining the discounted cash flows in the fair value analysis and a long-term growth rate of 3.0 percent.

As a result, as of February 27, 2021, we incurred goodwill impairment expense of $ 46.7 million and $ 17.1 million in our EFCO and Sotawall reporting units, respectively.

The goodwill impairment expense recorded during the year ended February 27, 2021 represents the total accumulated goodwill impairment expenses recorded.

Based on the impairment analysis performed in the fourth quarter, estimated fair value was in excess of carrying value at all of our reporting units.

At the end of the prior year ended February 27, 2021, we incurred goodwill impairment expense of $ 46.7 million and $ 17.1 million in our EFCO and Sotawall reporting units, respectively, which represents the total accumulated goodwill impairment expenses recorded as of February 26, 2022.

The carrying amount of goodwill attributable to each reporting segment was:

1 unchanged sentence

Optical Total

Balance at March 2, 2019 $ 148,446 $ 25,709 $ 1,120 $ 10,557 $ 185,832

Foreign currency translation ( 263 ) ( 53 ) — — ( 316 )

Balance at February 29, 2020 $ 148,183 $ 25,656 $ 1,120 $ 10,557 $ 185,516

4 unchanged sentences

Balance at February 27, 2021 93,099 25,322 1,120 10,557 130,098

Foreign currency translation 82 ( 78 ) — — 4

Balance at February 26, 2022 $ 93,181 $ 25,244 $ 1,120 $ 10,557 $ 130,102

(1) During the first quarter of fiscal 2021, we recorded a $6.3 million increase to goodwill and corresponding increase to deferred tax liabilities to correct an immaterial error related to prior periods.

3 unchanged sentences

We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired.

Based on our analysis, the fair value of each of our trade names and trademarks exceeded carrying amount, except for the EFCO tradename, within our Architectural Framing Systems segment.

The fair value determined for the EFCO tradename exceeded carrying value by $6.3 million and this amount was recognized as impairment expense in the fourth quarter ended February 27, 2021.

Based on our annual analysis, the fair value of each of our trade names and trademarks exceeded the carrying amount, however, as a result of triggering events resulting from the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, it was determined that the carrying value of the Sotawall trade name exceeded fair value by $ 12.7 million as it was determined to have an immaterial fair value, resulting in the trade name being fully impaired as of fiscal 2022 year end.

This amount was recognized as impairment expense in the fourth quarter ended February 26, 2022.

Finite-lived intangible assets

Long-lived assets or asset groups, including intangible assets subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable.

We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets.

Due to triggering events as a result of finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, we determined that the finite-lived intangible assets were impaired as of February 26, 2022.

The gross carrying amount of other intangible assets and related accumulated amortization was:

3 unchanged sentences

February 26, 2022

Definite-lived intangible assets:

Finite-lived intangible assets:

Customer relationships $ 122,961 $ ( 47,226 ) $ ( 33,608 ) $ 141 $ 42,268

Other intangibles 41,838 ( 35,613 ) ( 3,127 ) ( 14 ) 3,084

Total definite-lived intangible assets 160,940 ( 74,677 ) — 3,958 90,221

Total finite-lived intangible assets 164,799 ( 82,839 ) ( 36,735 ) 127 45,352

Indefinite-lived intangible assets:

Trademarks 45,300 — ( 6,300 ) 832 39,832

Trade names and trademarks 39,832 — ( 12,738 ) 35 27,129

Total intangible assets $ 204,631 $ ( 82,839 ) $ ( 49,473 ) $ 162 $ 72,481

February 27, 2021

Definite-lived intangible assets:

Finite-lived intangible assets:

Customer relationships $ 119,647 $ ( 40,443 ) $ — $ 3,315 $ 82,519

Other intangibles 41,293 ( 34,234 ) — 643 7,702

Total definite-lived intangible assets 161,308 ( 65,637 ) — ( 781 ) 94,890

Total finite-lived intangible assets 160,940 ( 74,677 ) — 3,958 90,221

Indefinite-lived intangible assets:

Trademarks 45,421 — — ( 120 ) 45,301

Trade names and trademarks 45,300 — ( 6,300 ) 832 39,832

Total intangible assets $ 206,240 $ ( 74,677 ) $ ( 6,300 ) $ 4,790 $ 130,053

Amortization expense on definite-lived intangible assets was $ 7.6 million, $ 7.7 million and $ 12.7 million in fiscal 2021, 2020 and 2019, respectively.

Amortization expense on finite-lived intangible assets was $ 7.8 million, $ 7.6 million and $ 7.7 million in fiscal 2022, 2021 and 2020, respectively.

Amortization expense is included within selling, general and administrative expenses for all intangible assets other than that of debt issuance costs, which is included in interest expense.

Estimated future amortization expense for definite-lived intangible assets is:

Estimated future amortization expense for finite-lived intangible assets is:

(In thousands) 2023 2024 2025 2026 2027

1 unchanged sentence

As of February 26, 2022, we had a committed revolving credit facility with maximum borrowings of up to $ 235 million with a maturity of June 2024.

There were no outstanding borrowings under the revolving credit facility, as of February 27, 2021 and borrowings of $ 47.5 million were outstanding as of February 29, 2020.

As of February 27, 2021 and February 29, 2020, we also had a $ 150 million term loan.

The term loan was amended during the third quarter of fiscal 2021 to extend the maturity date to June 2024.

Our revolving credit facility and term loan contain two financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of interest expense-to-EBITDA.

There were no outstanding borrowings under the revolving credit facility, as of February 26, 2022 and February 27, 2021, respectively.

As of February 26, 2022 and February 27, 2021, we also had a $ 150 million term loan with a maturity of June 2024.

Our revolving credit facility and term loan contain two affirmative financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of interest expense-to-EBITDA.

Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis.

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Weighted average interest rate during the year 1.45 % 1.89 %

(In thousands) February 27, 2021 February 29, 2020 March 2, 2019

(In thousands) February 26, 2022 February 27, 2021 February 29, 2020

Interest on debt $ 3,695 $ 4,981 $ 8,891

1 unchanged sentence

Interest expense $ 4,561 $ 5,585 $ 9,217

Interest payments were $ 4.6 million in fiscal February 27, 2021, $ 9.1 million in fiscal February 29, 2020 and $ 8.1 million in fiscal March 2, 2019.

Interest payments were $ 3.5 million in fiscal February 26, 2022, $ 4.6 million in fiscal February 27, 2021 and $ 9.1 million in fiscal February 29, 2020.

We have operating leases for certain of the buildings and equipment used in our operations.

3 unchanged sentences

Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term.

Lease expense is recognized on a straight-line basis over

the lease term.

Lease expense is recognized on a straight-line basis over the lease term.

Our leases have remaining lease terms of one to ten years, some of which include renewal options that can extend the lease for up to an additional ten years at our sole discretion.

40 unchanged sentences

We have investments in corporate-owned life insurance policies (COLI) of $ 17.8 million and money market funds (classified as cash equivalents) of $ 0.3 million with the intention of utilizing them as long-term funding sources for this plan.

The COLI assets are recorded at their net cash surrender values and are included in other non-current assets in the consolidated balance sheet.

The COLI assets are recorded at their net cash surrender values and are included in other non-current assets in the consolidated balance sheets.

Plans under Collective Bargaining Agreements

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Glazier's Union Local 27 Pension and Retirement Plan 36-6034076 Green Green 256 290 165 No No No 5/31/2018

International Painters and Allied Trades Industry Pension Fund 52-6073909 Red Red 932 525 544 Implemented No No 11/30/2017

International Painters and Allied Trades Industry Pension Fund 52-6073909 Red Red 837 932 525 Implemented 4/30/2017

Iron Workers Local Union No.

5 and Iron Workers Employers Assocation Employees Pension Trsut Fund 52-1075473 Green Green 1,454 940 858 No No No 5/31/2017

5 and Iron Workers Employers Association Employees Pension Trust Fund 52-1075473 Green Green 1,125 1,454 940 No No No 5/31/2017

Iron Workers Mid-America Pension Fund 36-6488227 Green Green 546 431 767 No No No 5/31/2017

8 unchanged sentences

Iron Workers Local Union No.

5 and Iron Workers Employers Assocation Employees Pension Trsut Fund 2021, 2020 and 2019

5 and Iron Workers Employers Association Employees Pension Trust Fund 2021 and 2020

Iron Workers Mid-America Pension Fund 2021 and 2020

2 unchanged sentences

Western Glaziers Retirement Plan (Washington) 2021

Western Glaziers Retirement Fund (Oregon and Southwest Washington) 2020

Texas Iron Workers' Pension Plan 2020

Texas Iron Workers'Annuity 2020

Southern Iron Workers Pension Fund 2020

Upstate New York Engineers Pension Fund 2020

Amounts contributed in fiscal 2022, 2021, and 2020 to defined contribution multiemployer plans were $ 1.7 million, $ 1.5 million and $ 0.9 million, respectively.

9 unchanged sentences

Interest cost 339 346

Actuarial (gain) loss ( 175 ) 1,567

Actuarial gain ( 475 ) ( 175 )

Benefits paid ( 1,000 ) ( 1,001 )

16 unchanged sentences

Net actuarial loss $ 4,916 $ 5,416

The net actuarial gain recognized in comprehensive earnings, net of tax expense, was $ 0.1 million in fiscal 2021, while the net actuarial loss recognized in comprehensive earnings, net of tax benefit, was $ 0.4 million in fiscal 2020.

The net actuarial gain recognized in comprehensive earnings, net of tax expense, was $ 0.4 million in fiscal 2022, and $ 0.1 million in fiscal 2021.

Components of the defined-benefit pension plans' net periodic benefit cost:

47 unchanged sentences

The liability for these types of project-related contingencies was $ 0.1 million and $ 4.6 million as of February 26, 2022 and February 27, 2021, respectively.

In the second quarter of fiscal 2021, we settled contract claims related to a majority of these project-related contingencies on a legacy EFCO project for an amount equal to the recorded contingency.

During fiscal 2020, we received $ 15.0 million of insurance proceeds related to this project matter, which was included within cost of sales on our consolidated results of operations.

Letters of credit

At February 26, 2022, we had $ 16.4 million of ongoing letters of credit, all of which have been issued under our revolving credit facility, as discussed in Note 7.

In connection with the settlement of contract claims related to a legacy EFCO project referenced above, the original project performance and payment bond related to the project was replaced, which required a $25.0 million letter of credit.

The letter of credit for the replacement bond was issued outside of our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants.

We also have a $6.9 million letter of credit which has been issued outside our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants.

Purchase obligations

3 unchanged sentences

Remediation of these conditions is ongoing without significant disruption to our operations.

The estimated remaining liability for these remediation activities was $ 0.5 million and $ 0.7 million at February 27, 2021 and February 29, 2020, respectively.

The estimated remaining liability for these remediation activities was $ 0.5 million at February 26, 2022 and February 27, 2021, respectively.

New Markets Tax Credit (NMTC) transactions

As of year-end fiscal 2022, we have three outstanding NMTC arrangements which help to support operational expansion.

Proceeds received from investors on these transactions are included within other non-current liabilities on our consolidated balance sheets.

Proceeds received from investors on these transactions are included within other current and non-current liabilities on our consolidated balance sheets.

The NMTC arrangements are subject to 100 percent tax credit recapture for a period of seven years from the date of each respective transaction.

11 unchanged sentences

Total $ 15.8 $ 3.6 $ 12.2

From time to time, the Company is a party to various legal proceedings incidental to its normal operating activities.

In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes

and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement.

We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product.

The Company is a party to various legal proceedings incidental to its normal operating activities.

In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement.

We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products.

The Company is also subject to litigation arising out of areas such as employment practices, workers compensation and general liability matters.

6 unchanged sentences

We repurchased 1,177,704 shares under the program, for a total cost of $ 32.9 million, in fiscal 2021, and 686,997 shares under the program, for a total cost of $ 25.1 million, in fiscal 2020.

The Company has repurchased a total of 7,132,616 shares, at a total cost of $ 207.3 million, since the inception of this program.

The Company has repurchased a total of 9,425,462 shares, at a total cost of $ 307.3

million, since the inception of this program.

We have remaining authority to repurchase 1,824,538 shares under this program, which has no expiration date.

3 unchanged sentences

(In thousands) 2022 2021

Net unrealized gain on marketable securities $ 302 $ 222

Net unrealized (loss) gain on marketable securities $ ( 58 ) $ 302

Foreign currency hedge 2,717 643

25 unchanged sentences

Outstanding at February 27, 2021 633,700 $ 23.04

Awards granted 660,600 23.04

Awards exercised ( 178,564 ) 23.04

Awards canceled ( 84,336 ) 23.04

Outstanding at February 26, 2022 370,800 $ 23.04 8.3 years $ 4,694,328

Vested or expected to vest at February 26, 2022 370,800 $ 23.04 8.3 years $ 4,694,328

Exercisable at February 27, 2021 215,600 $ 23.04 9.3 years $ 3,096,016

Cash proceeds from the exercise of stock options were $ 4.1 million for fiscal 2022 and $ 1.5 million for fiscal 2021.

16 unchanged sentences

Earnings before income taxes $ 13,869 $ 22,611 $ 79,750

The components of income tax expense (benefit) for each of the last three fiscal years are as follows:

The components of income tax expense for each of the last three fiscal years are as follows:

(In thousands) 2022 2021 2020

16 unchanged sentences

Nondeductible goodwill impairment expense — 5.6 —

Valuation allowance 63.2 11.4 2.2

Nontaxable gain (loss) on life insurance policies 1.2 ( 1.8 ) ( 0.4 )

Deduction for foreign derived intangible income ( 2.6 ) ( 0.8 ) ( 0.3 )

Research & development tax credit ( 9.4 ) ( 5.3 ) ( 1.6 )

§162(m) Executive Compensation Limitation 3.5 3.6 0.3

Tax benefit of share based awards ( 5.2 ) 0.2 0.2

Other, net 2.2 3.7 0.5

Consolidated effective income tax rate 74.9 % 31.7 % 22.4 %

The estimated effective tax rate for fiscal 2021 increased 9.3 percentage points from fiscal 2020, primarily due to nondeductible goodwill impairment expense in Canada and the impact of the unfavorable permanent items in relation to reduced earnings in fiscal 2021.

The estimated effective tax rate for fiscal 2022 increased 43.2 percentage points from fiscal 2021, primarily due to the valuation allowance recorded against the tax benefit of the Sotawall impairment and the impact of the permanent items in relation to reduced earnings in fiscal 2022.

Deferred tax assets and deferred tax liabilities at February 26, 2022 and February 27, 2021 were:

3 unchanged sentences

Deferred compensation 8,602 9,452

Depreciation 509 —

Employment tax accrual 1,546 1,483

8 unchanged sentences

Deferred tax assets, net of valuation allowance 49,086 49,693

(In thousands) 2021 2020

Deferred tax liabilities

3 unchanged sentences

Operating lease, right-of-use assets 12,768 15,435

Other 3,015 820

Total deferred tax liabilities 44,952 55,186

Net deferred tax liabilities $ ( 5,493 ) $ ( 5,675 )

Net deferred tax assets (liabilities) $ 4,134 $ ( 5,493 )

The Company has state and foreign net operating loss carryforwards with a tax effect of $ 8.6 million.

A valuation allowance of $ 4.5 million has been established for these net operating loss carryforwards due to the uncertainty of the use of the tax benefits in future periods.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing Deferred Tax Assets ("DTAs").

This has resulted in valuation allowances being recorded

against DTAs in prior years in Brazil, Canada and various states.

During the fourth quarter of fiscal 2022, an additional valuation allowance of $ 11.5 million was recorded against Canadian DTAs to recognize only the portion of the DTA that is more likely than not to be realized.

As of February 26, 2022, we have a full valuation allowance recorded against our Canadian DTAs.

A significant piece of objective negative evidence evaluated in the fourth quarter of fiscal 2022 was the cumulative losses incurred in Canada over the three-year period ended February 26, 2022, driven primarily by the impairments recorded in the fourth quarter of fiscal 2022.

Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth.

The amount of the DTA considered realizable could be adjusted if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth or if the Company were to identify and implement a tax strategy to provide a future source of taxable income.

The Company files income tax returns in the U.S.

10 unchanged sentences

If we were to prevail on all unrecognized tax benefits recorded, $ 1.7 million, $ 2.2 million and $ 2.6 million for fiscal 2022, 2021 and 2020, respectively, would benefit the effective tax rate.

Also included in the balance of unrecognized tax benefits for fiscal 2021, 2020 and 2019, are $ 1.6 million, $ 1.5 million and $ 2.0 million, respectively, of tax benefits that, if recognized, would result in adjustments to deferred taxes.

Penalties and interest related to unrecognized tax benefits are recorded in income tax expense.

12 unchanged sentences

The CARES Act contains numerous income tax provisions, such as relaxing limitations on the deductibility of interest and the ability to carryback net operating losses arising in taxable years from 2018 through 2020.

While these provisions did not impact the Company, a provision related to the temporary deferral of the employer share of payroll taxes allowed us to defer remittance of $13.6 million of payroll taxes in calendar 2020, which will be repaid equally in calendar years 2021 and 2022.

During the fourth quarter of fiscal 2022, we repaid half of the deferred tax payments in the amount of $6.8 million, with the remaining amount of $6.8 million included within accrued payroll and other benefits on our consolidated balance sheets to be repaid in calendar year 2022.

Earnings per Share

4 unchanged sentences

Basic earnings per share - weighted average common shares outstanding 24,920 25,955 26,474

25,955 26,474 27,802

Weighted average effect of nonvested share grants and assumed exercise of stock options 372 349 255

Diluted earnings per share - weighted average common shares and potential common shares outstanding 25,292 26,304 26,729

26,304 26,729 28,082

Stock awards excluded from the calculation of earnings per share because the award price was greater than the average market price of the common shares 1 111 99

26 unchanged sentences

Total $ 49,993 $ 51,440 $ 46,795

(In thousands) 2021 2020 2019

Capital Expenditures

5 unchanged sentences

Total $ 21,841 $ 26,165 $ 51,428

(In thousands) 2022 2021 2020

Identifiable Assets

8 unchanged sentences

Operating income does not include interest expense or a provision for income taxes.

Corporate and other includes miscellaneous corporate activity, including certain legal, consulting and advisory costs not allocable to our segments.

Corporate and other also includes $ 16.7 million in fiscal 2020 and $ 40.9 million in fiscal 2019, of project-related charges on acquired contracts, as well as $ 15.0 million of insurance proceeds related to a project matter in fiscal 2020.

Architectural Framing Systems segment results include $ 49.5 million and $ 70.1 million of impairment charges and $ 1.7 million and $ 5.3 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively.

Architectural Glass segment results include $ 27.1 million and $ 0.3 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively.

Corporate and other includes miscellaneous corporate activity, including certain legal, consulting and advisory costs and certain employee benefit costs not allocable to our segments, as well as $ 1.7 million and $ 0.2 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively.

Corporate and other also includes $ 16.7 million in fiscal 2020, of project-related charges on acquired contracts, as well as $ 15.0 million of insurance proceeds related to a project matter in fiscal 2020.

Identifiable assets for Corporate and other include all short- and long-term available-for-sale securities.

12 unchanged sentences

operations were $ 59.5 million, $ 33.1 million, and $ 54.7 million in fiscal 2022, 2021, and 2020, respectively, representing approximately 5 percent of consolidated net sales in each of these fiscal years.

Restructuring

These closures were made in order to concentrate this segment on premium, high-performance products.

Additionally, employee termination costs were incurred related to these facility closures, realignment of the Architectural Framing Systems segment, and within the Corporate office.

During the fourth quarter of fiscal 2022, as a result of the announced restructuring plan, we sold a building in Statesboro, Georgia within our Architectural Glass segment for $ 29.1 million.

The carrying value of the building was $ 9.4 million, and we recognized a gain on this sale of approximately $ 19.5 million, net of associated transaction costs, which is included as a reduction of cost of sales within our consolidated statements of operations.

For the year ended February 26, 2022, we incurred $ 30.5 million of pre-tax costs associated with the execution of these restructuring plans, of which $ 28.2 million is included within cost of sales and $ 2.3 million is included within selling, general and administrative expenses, excluding the gain on sale mentioned above, within our consolidated statements of operations.

For the year ended February 27, 2021, we closed seven facilities within our Architectural Framing Systems segment, exited certain leases for those facilities, and provided certain termination benefits to employees across the Company, resulting in restructuring-related costs of $ 5.8 million, of which $ 5.2 million is included within cost of sales and $ 0.6 million is included within selling, general and administrative expenses within our consolidated statements of operations.

(In thousands) Architectural Framing Architectural Glass Corporate & Other Total

February 26, 2022

Asset impairment on property, plant and equipment $ 54 $ 21,443 $ — $ 21,497

Termination benefits 1,435 3,718 1,039 6,192

Other restructuring charges 244 1,935 644 2,823

Total restructuring charges $ 1,733 $ 27,096 $ 1,683 $ 30,512

February 27, 2021

Asset impairment on leases and property, plant and equipment $ 3,566 $ — $ — $ 3,566

Termination benefits 1,491 325 229 2,045

Other restructuring charges 224 — — 224

Total restructuring charges $ 5,281 $ 325 $ 229 $ 5,835

The following table summarizes our restructuring related accrual balances included within accrued payroll and related benefits and other current liabilities in the consolidated balance sheets.

All balances are expected to be paid within fiscal 2023.

(In thousands) Architectural Framing Architectural Glass Corporate & Other Total

Balance at February 29, 2020 $ — $ — $ — $ —

Restructuring expense 4,020 325 229 4,574

Payments ( 1,148 ) ( 95 ) ( 68 ) ( 1,311 )

Balance at February 27, 2021 $ 2,872 $ 230 $ 161 $ 3,263

Restructuring expense 2,000 1,036 1,039 4,075

Payments ( 3,567 ) ( 529 ) ( 972 ) ( 5,068 )

Other adjustments ( 865 ) — — ( 865 )

Balance at February 26, 2022 440 737 228 1,405

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data