What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2023-04-21 compared with 2022-04-22 · 165 added, 161 removed, 985 unchanged (25% of the section changed)

13 unchanged sentences

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

To the shareholders and the Board of Directors of

Apogee Enterprises, Inc.

39 unchanged sentences

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

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 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.

Goodwill and Intangible Assets — Window and Wall Systems Reporting Unit and EFCO Trade Name Indefinite-Lived Intangible Asset — Refer to Notes 1 and 6 to the consolidated financial statements

The Company’s evaluation of goodwill and indefinite-lived intangible assets for impairment involves the comparison of the fair value of each reporting unit or indefinite-lived intangible asset to its carrying value.

The Company estimates the fair value of its reporting units using both the income approach and the market approach and estimates the fair value of its indefinite-lived trade name intangible assets using the relief-from-royalty method.

The determination of fair value involves significant judgment and projections of future performance, including future revenues, future operating expenses, discount rates, and royalty rates.

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

The Company’s goodwill balance was $129.0 million as of February 25, 2023, of which $54.5 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.

The Company’s indefinite-lived intangible assets balance was $26.9 million as of February 25, 2023, of which $23.0 million relates to the EFCO trade name indefinite-lived intangible asset.

The fair values exceeded their carrying values as of the measurement date and, therefore, no impairment was identified.

Given the significant judgments made by management to estimate the fair values of the Window and Wall Systems reporting unit and the EFCO trade name indefinite-lived intangible asset, performing audit procedures to evaluate the reasonableness of management's estimates and assumptions related to selection of future revenues, future operating expenses, discount rates, and royalty rates required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

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 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.

Our audit procedures related to future revenues, future operating expenses, discount rates, and royalty rates used by management to estimate the fair values included the following, among others:

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

• With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology, (2) discount rates, and (3) royalty rates, including testing the source information underlying the determination of the valuation assumptions, testing the mathematical accuracy of the calculation, and developing a range of independent estimates and

comparing those to the valuation assumptions selected by management.

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

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April 21, 2023

We have served as the Company's auditor since 2003.

We have served as the Company's auditor since fiscal 2003.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

To the shareholders and the Board of Directors of

Apogee Enterprises, Inc.

27 unchanged sentences

Cash and cash equivalents $ 19,924 $ 37,583

Receivables, net of allowance for doubtful accounts 168,592 175,917

Restricted cash 1,549 —

Receivables, net 223,101 168,592

Inventories 78,441 80,494

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Net earnings $ 104,107 $ 3,486 $ 15,436

Other comprehensive earnings (loss):

Other comprehensive (loss) earnings:

Unrealized (loss) gain on marketable securities, net of $( 131 ), $( 96 ) and $ 22 of tax (benefit) expense, respectively

( 492 ) ( 360 ) 80

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

2,074 1,475 ( 423 )

Unrealized gain (loss) on pension obligation, net of $ 117 , $ 32 and $( 124 ) of tax expense (benefit), respectively

Unrealized (loss) gain on derivative instruments, net of $( 672 ), $ 633 and $ 450 of tax (benefit) expense, respectively

( 2,205 ) 2,074 1,475

Unrealized gain on pension obligation, net of $ 222 , $ 117 and $ 32 of tax expense, respectively

Foreign currency translation adjustments ( 3,345 ) ( 309 ) 4,375

Other comprehensive earnings (loss) 1,787 6,035 ( 1,935 )

Other comprehensive (loss) earnings ( 5,316 ) 1,787 6,035

Total comprehensive earnings $ 98,791 $ 5,273 $ 21,471

8 unchanged sentences

Deferred income taxes ( 7,185 ) ( 7,956 ) ( 6,460 )

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

Asset impairment — 21,497 1,400

Gain on disposal of assets ( 3,815 ) ( 20,987 ) ( 20,044 )

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

Proceeds from New Markets Tax Credit transaction, net of deferred costs 18,390 — —

Settlement of New Markets Tax Credit transaction ( 19,523 ) — —

Noncash lease expense 11,878 12,418 12,235

15 unchanged sentences

Sales/maturities of marketable securities 9,712 1,563 2,657

Other, net — ( 141 ) ( 1,673 )

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

Net cash (used) provided by investing activities ( 27,710 ) 9,283 ( 2,147 )

Financing Activities

Borrowings on line of credit 485,879 — 198,601

(Repayment) borrowings on debt ( 2,000 ) ( 5,400 ) 150,000

Repayment on debt ( 151,000 ) ( 2,000 ) ( 5,400 )

Payments on line of credit ( 327,865 ) — ( 246,340 )

7 unchanged sentences

Cash, cash equivalents and restricted cash at beginning of year 37,583 47,277 14,952

Cash, cash equivalents and restricted cash at end of year $ 37,583 $ 47,277 $ 14,952

Cash, cash equivalents and restricted cash at end of period $ 21,473 $ 37,583 $ 47,277

Noncash Activity

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Consolidated Statements of Shareholders' Equity

(In thousands, except per share data) Common Shares Outstanding Common Stock Additional Paid-In Capital Retained Earnings Common Stock Held in Trust Deferred Compensation Obligation Accumulated Other Comprehensive (Loss) Income Total Shareholders' Equity

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

(In thousands, except per share data) Common Shares Outstanding Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Shareholders' Equity

Balance at February 29, 2020 26,443 $ 8,814 $ 154,016 $ 388,010 $ ( 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 derivative instruments, 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

8 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 )

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

Unrealized gain on derivative instruments, net of $ 633 tax expense

— — — — 2,074 2,074

13 unchanged sentences

— — — — ( 492 ) ( 492 )

Unrealized gain on foreign currency hedge, net of $ 633 tax expense

Unrealized loss on derivative instruments, net of $ 672 tax benefit

— — — — ( 2,205 ) ( 2,205 )

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Reclassifications

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

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

These reclassifications had no impact on reported net income, cash flows, total assets and liabilities.

Cash equivalents

Highly liquid investments with an original maturity of three months or less are included in cash equivalents and are stated at cost, which approximates fair value.

Restricted Cash

Cash held that is specifically dedicated to fund each capital project related to our New Markets Tax Credit transactions.

Marketable securities

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Further, as of February 25, 2023 and February 26, 2022, the Company did not record an allowance for credit losses related to its available-for-sale securities.

Marketable securities are included in other current and non-current assets on the consolidated balance sheets and gross realized gains and losses are included in other income (expense), net in our consolidated results of operations.

Marketable securities are included in other current and non-current assets on the consolidated balance sheets and gross realized gains and losses are included in other expense (income), net in our consolidated results of operations.

Inventories, which consist primarily of purchased glass and aluminum, are valued at lower of cost or market using the first-in, first-out (FIFO) method.

9 unchanged sentences

Impairment of long-lived assets

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.

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 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.

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.

This represents a write-down of the entire investment in the other 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, which was effective 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.

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Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses.

We have historically evaluated goodwill for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate the carrying value of the goodwill may not be recoverable.

In the third quarter of fiscal 2021, we changed the date of our annual goodwill impairment testing from our fiscal year-end to the first day in our fiscal fourth quarter.

This change results in better alignment of the annual impairment test with our strategic and annual planning processes.

This change was determined to not be material to and had no impact on our current or historical consolidated financial statements.

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

Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis.

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 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.

At the beginning of the first quarter of fiscal 2023, we began management of the Sotawall and Harmon businesses under the Architectural Services segment in order to create a single, unified offering for larger custom curtainwall projects.

In connection with the transition, leadership of our Sotawall and Harmon businesses was combined to form the Architectural Services reporting unit.

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

Concurrent with this change in composition of the operating segments effective at the start of our first quarter of fiscal 2023, goodwill was reallocated to the affected reporting units within each operating segment, using a relative fair value approach as outlined in ASC 350, Intangibles - Goodwill and Other .

The reporting units for our fiscal 2023 annual impairment test align with reporting segments, with the exception of our Architectural Framing Systems segment.

This segment contains two reporting units, Window and Wall Systems and Storefront and Finishing Solutions, which represent $54.5 million and $35.7 million, of the goodwill balance at February 25, 2023, respectively.

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

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

On March 3, 2019, we adopted ASU 2016-02, Leases , which results in recognizing a right-of-use asset and lease liability on our consolidated balance sheet at lease commencement for leases with terms greater than twelve months.

We have commercially negotiated leases where we recognize a right-of-use asset and lease liability on our consolidated balance sheet at lease commencement for leases with terms greater than twelve months.

The initial lease liability is recognized at the present value of remaining lease payments over the lease term.

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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.

During the first quarter of fiscal 2023, we completed the execution of these plans with the sale of the remaining manufacturing assets at our Architectural Glass location, in Dallas, Texas.

Refer to additional information in Note 16.

Research and development

Research and development costs are expensed as incurred and were $ 17.3 million, $ 15.3 million and $ 16.6 million for fiscal 2022, 2021 and 2020, respectively.

Of these amounts, $ 9.5 million, $ 9.9 million and $ 8.0 million, respectively, were focused primarily upon design of custom window and curtainwall systems in accordance with customer specifications and are included in cost of sales.

The remainder of the expense is included within selling, general and administrative expenses.

Research and development activities include the development of new products, the modification of existing product designs, and research related to process improvements.

Our research and development expenses were $ 25.5 million, $ 17.3 million and $ 15.3 million for fiscal 2023, 2022 and 2021, respectively.

These costs are expensed as incurred.

Advertising costs are expensed as incurred within selling, general and administrative expenses, and were $ 1.2 million in fiscal 2023, $ 1.2 million in fiscal 2022 and $ 1.1 million in fiscal 2021.

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Subsequent events

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing.

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.

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing and determined that there were no subsequent events that required recognition or disclosure in the consolidated financial statements.

Adoption of new accounting standards

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Warranties $ 14,872 $ 11,786

Accrued project losses 93 4,572

Income and other taxes 7,129 15,770

Accrued self-insurance reserves 14,447 8,796

Accrued freight 2,078 1,477

Deferred revenue 2,416 2,714

Other 28,084 28,396

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Deferred tax liabilities 1,417 2,296

Deferred payroll taxes — 6,789

Other 22,190 16,598

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Due after one year through five years 8,442 7,772

Due after five years through 10 years 698 669

Due beyond 15 years 800 794

Total $ 10,647 $ 9,945

2 unchanged sentences

The information that follows explains the various types of derivatives and financial instruments we use, how such instruments are accounted for, and how such instruments impact our financial position and performance.

In fiscal 2020, we entered into an interest rate swap to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility and term loan facility.

In fiscal 2020, we entered into an interest rate swap to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility.

As of February 25, 2023, the interest rate swap contract had a notional value of $ 30 million.

3 unchanged sentences

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 loss.

Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive loss until which time the hedged transaction is settled and gains or losses are reclassified to earnings.

Fair value measurements

12 unchanged sentences

Cash surrender value of life insurance — 8,282 8,282

Aluminum hedging contract — 2,133 2,133

Interest rate swap contract — 1,817 1,817

1 unchanged sentence

Foreign currency forward/option contract — 206 206

Aluminum hedging contract — 1,075 1,075

February 26, 2022

2 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

Money market funds and commercial paper

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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.

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

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

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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:

(In thousands) Architectural Framing Systems Architectural Glass Architectural Services Large-Scale

Optical Total

(In thousands) Architectural Framing Systems Architectural Services Architectural Glass Large-Scale Optical Total

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

Adjustment (1)

6,315 — — — 6,315

Impairment expense ( 63,769 ) — — — ( 63,769 )

Foreign currency translation 82 — ( 78 ) — 4

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

Reallocation among reporting units (1)

( 2,048 ) 2,048 — — —

Foreign currency translation ( 996 ) ( 137 ) 57 — ( 1,076 )

Balance at February 25, 2023 $ 90,137 $ 3,031 $ 25,301 $ 10,557 $ 129,026

(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.

The error was not material to any previously reported annual or interim consolidated financial statements.

(1) Represents the reallocation of goodwill as a result of transitioning Sotawall from the Architectural Framing Systems segment to the Architectural Services segment as of the start of the first quarter of fiscal 2023.

Indefinite-lived intangible assets

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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 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.

Based on our annual analysis, the fair value of each of our trade names and trademarks exceeded the carrying amount.

During fiscal 2022, 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.

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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.

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.

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

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Estimated amortization expense $ 4,364 $ 4,333 $ 4,317 $ 4,297 $ 3,939

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 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.

During the second quarter ended August 27, 2022, we amended and extended our committed revolving credit facility to include maximum borrowings of up to $ 385 million with a maturity of August 2027.

As part of the amendment, we repaid the $150 million term loan with borrowings under the revolving credit facility.

As of February 25, 2023, outstanding borrowings under our revolving credit facility were $ 156 million, while there were no outstanding borrowings under the revolving credit facility and $ 150 million of borrowings outstanding under the term loan as of February 26, 2022.

Our revolving credit facility contains two maintenance 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.

If the Company is not in compliance with either of these covenants, our credit facility and term loan may be terminated and/or any amounts then outstanding may be declared immediately due and payable.

At February 25, 2023, we were in compliance with both financial covenants.

We have the ability to issue letters of credit of up to $ 80.0 million under the credit facility, the outstanding amounts of which decrease the available commitment.

At February 26, 2022, $ 218.6 million was available under this revolving credit facility.

Debt at February 25, 2023 also included $ 12.0 million of industrial revenue bonds that mature in fiscal years 2036 through 2043.

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We also maintain two Canadian committed, revolving credit facilities totaling $ 25.0 million (USD).

No borrowings were outstanding under the facilities in place as of February 26, 2022 or as of February 27, 2021.

At February 25, 2023, outstanding borrowings under our Canadian committed, revolving credit facilities were $ 1.8 million, while there were no outstanding borrowings under the facilities in place as of as of February 26, 2022.

Debt maturities and other selected information follows:

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We determine if an arrangement contains a lease at inception.

At the beginning of fiscal 2020, we adopted ASU 2016-20, Leases .

We elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification.

Under ASU 2016-20, Leases , we have elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification.

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

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We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term.

We have elected the practical expedient to account for lease and nonlease components (e.g., common-area maintenance costs) as a single lease component.

We have elected the practical expedient to account for lease and non-lease components (e.g., common-area maintenance costs) as a single lease component.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

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Under the plan, employees are allowed to contribute up to 60 percent of eligible earnings to the plan, up to statutory limits.

We match 100 percent of the first one percent contributed and 50 percent of the next five percent contributed on eligible compensation that non-union employees contribute and according to contract terms for union employees.

On January 1, 2023, we began matching 100 percent of the first two percent contributed and 50 percent of the next four percent contributed on eligible compensation that non-union employees contribute and according to contract terms for union employees.

Previously, we matched 100 percent of the first one percent contributed and 50 percent of the next five percent contributed on eligible compensation that non-union employees contribute.

In response to the effects of COVID-19 on our business, we suspended the matching contribution from June 1, 2020 until December 31, 2020.

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Pension Fund EIN/Pension Plan Number 2023 2022 2023 2022 2021 FIP/RP Status Pending/Implemented Minimum Contribution Surcharge Imposed Expiration Date of Collective Bargaining Agreement (1)

Atlanta Ironworkers Local Union 387 Pension Plan 58-6051152 Green Green $ 300 $ 209 $ 35 No No No

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 837 932 525 Implemented 4/30/2017

Iron Workers Local Union No.

5 and Iron Workers Employers Association Employees Pension Trust Fund 521075473 Green Green $ 1,359 $ 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

Iron Workers St.

Louis District Council Pension Trust Fund 43-6052659 Green Green — 63 217 No No No

International Painters and Allied Trades Industry Pension Fund 526073909 Red Red 869 932 525 Implemented No No 11/30/2017

Western Glaziers Retirement Plan (Washington) 916123685 Green Green 815 160 526 No No No 6/30/2017

Ironworkers Local 580 Shop Pension Fund 136178514 Green Green 596 31 26 Implemented No Yes 6/30/2023

Western Glaziers Retirement Fund (Oregon and Southwest Washington) 936074376 Green Green 441 — 51 No No No 11/30/2017

Iron Workers Mid-America Pension Fund 366488227 Green Green 429 431 767 No No No 5/31/2017

Glazier's Union Local 27 Pension and Retirement Plan 366034076 Green Green 174 290 165 No No No 5/31/2017

Atlanta Ironworkers Local Union 387 Pension Plan 586051152 Green Green 125 209 35 No No No 1/31/2017

Other funds 442 422 423

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5 and Iron Workers Employers Association Employees Pension Trust Fund 2022, 2021 and 2020

Western Glaziers Retirement Plan (Washington) 2022

Iron Workers Mid-America Pension Fund 2022 and 2021

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Louis District Council Pension Trust Fund 2021

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

Atlanta Ironworkers Local Union 387 Pension Plan 2022

Amounts contributed in fiscal 2023, 2022, and 2021 to defined contribution multiemployer plans were $ 2.2 million, $ 1.6 million and $ 1.1 million, respectively.

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We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages.

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.

Letters of credit

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

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

The estimated remaining liability for these remediation activities was $ 0.4 million and $ 0.5 million at February 25, 2023 and February 26, 2022, 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.

We have three outstanding NMTC arrangements which help to support operational expansion.

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

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Upon the termination of each arrangement, these proceeds will be recognized in earnings in exchange for the transfer of tax credits.

The direct and incremental costs incurred in structuring these arrangements have been deferred and are included in other non-current assets on our consolidated balance sheets.

The direct and incremental costs incurred in structuring these arrangements have been deferred and are included in other current and non-current assets on our consolidated balance sheets.

These costs will be recognized in conjunction with the recognition of the related proceeds on each arrangement.

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Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics.

During the third quarter of fiscal 2021, we settled one arrangement at the end of the seven year term and as a result, $7.4 million of operating income was recognized as a reduction to selling, general and administrative expenses within the Architectural Glass segment.

During the first quarter of fiscal 2023, one NMTC transaction was terminated, and a new NMTC transaction was established as a replacement.

As a result of these transactions, $19.5 million in previous proceeds received were repaid and $19.5 million was contributed back to the Company as part of the newly established NMTC transaction.

This NMTC transaction will be held for the remainder of the original seven-year term.

The table below provides a summary of our outstanding NMTC transactions (in millions):

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June 2016 June 2023 $ 6.0 $ 1.2 $ 4.8

August 2018 August 2025 6.6 1.4 5.2

August 2025 6.1 1.6 4.5

September 2018 September 2025 3.2 1.0 2.2

Total $ 15.3 $ 3.8 $ 11.5

(1) Continuation of the August 2018 NMTC financing transaction

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

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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.

In December 2022, the claimant in an arbitration of one such claim was awarded $20 million.

The Company intends to appeal the award and believes, after taking into account all currently available information, including the advice of counsel and the likelihood of available insurance coverage, that this award will not have a material adverse effect on the Company's business, financial condition, results of operations or cash flows.

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

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We repurchased 2,292,846 shares under the program, for a total cost of $ 100.0 million, in fiscal 2022, and 1,177,704 shares under the program, for a total cost of $ 32.9 million, in fiscal 2021.

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.

The Company has repurchased a total of 10,996,601 shares, at a total cost of $ 381.6 million, since the inception of this program.

We have remaining authority to repurchase 1,253,399 shares under this program, which has no expiration date.

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(In thousands) 2023 2022

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

Foreign currency hedge 2,717 643

Net unrealized loss on marketable securities $ ( 550 ) $ ( 58 )

Net unrealized gain on derivative instruments 512 2,717

Pension liability adjustments ( 3,044 ) ( 3,770 )

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We account for any forfeitures as they occur.

Stock Options and SARs

Stock Options

In June 2020, we granted 660,600 stock options which had a weighted average fair value per option at the date of grant of $5.01.

The fair value of each award grant is estimated on the date of grant using the binomial lattice option-pricing model with the following weighted-average assumptions used for grants in fiscal 2021.

The fair value of each award grant is estimated on the date of grant using the binomial lattice option-pricing model with the following weighted-average assumptions used for grants issued in fiscal 2021.

Dividend yield 3.3 %

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Vested or expected to vest at February 25, 2023 158,000 $ 23.04 0.5 years $ 2,000,280

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

The aggregate intrinsic value of securities exercised (the amount by which the stock price on the date of exercise exceeded the stock price of the award on the date of grant) was $ 2.3 million in fiscal 2022 and $ 1.8 million in fiscal 2021.

No awards were issued or exercised during fiscal 2020.

For the fiscal year ended February 25, 2023, there were no cash proceeds from the exercise of stock options as all stock options were exercised on a stock-for-stock basis.

The aggregate intrinsic value of securities exercised (the amount by which the stock price on the date of exercise exceeded the stock price of the award on the date of grant) was $ 2.7 million.

For the fiscal year ended February 26, 2022, cash proceeds from the exercise of stock options were $ 4.1 million.

The aggregate intrinsic value of the securities exercised was $ 2.3 million.

Executive compensation program

In fiscal 2022, the Compensation Committee of the Board of Directors implemented an executive compensation program for certain key employees.

In each of the first quarters of fiscal 2023 and fiscal 2022, we issued performance shares in the form of nonvested share unit awards, which give the recipient the right to receive shares earned at the end of the respective three-fiscal-year performance periods.

The number of share units issued at grant is equal to the target number of performance shares and allows for the right to receive a variable number of shares dependent on achieving a defined performance goal of return on invested capital and being employed at the end of the performance period.

Nonvested Share Awards and Units

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February 26, 2022 (1)

Granted 236,195 35.54

488,944 $ 30.14

183,793 46.08

Vested ( 171,485 ) 28.08

Canceled ( 30,483 ) 29.06

( 46,473 ) 36.13

February 25, 2023 (4)

454,779 $ 36.75

(1) Includes a total of 50,825 nonvested share units granted and outstanding at target level for the fiscal 2022-2024 performance period.

(2)Includes a total of 38,654 nonvested share units granted and outstanding at target level for the 2023-2025 performance period.

(3) Includes a total of 9,690 nonvested share units cancelled for the fiscal 2022-2024 and fiscal 2023-2025 performance periods.

(4)Includes a total of 45,207 and 34,492 nonvested share units granted and outstanding at target level for the 2022-2024 and 2023-2025 performance periods, respectively.

At February 25, 2023, there was $ 9.7 million of total unrecognized compensation cost related to nonvested share and nonvested share unit awards, which is expected to be recognized over a weighted average period of approximately 23 months.

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Tax benefit of share based awards ( 0.8 ) ( 5.2 ) 0.2

Worthless stock deduction ( 6.0 ) — —

Other, net ( 1.4 ) 2.2 3.7

Consolidated effective income tax rate 10.7 % 74.9 % 31.7 %

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.

The estimated effective tax rate for fiscal 2023 decreased 64.2 percentage points from fiscal 2022, primarily due to the non-deductible intangible impairment charge in Canada in fiscal 2022 as well as the tax benefits claimed in fiscal 2023 related to a worthless stock loss deduction related to the Company's investment in Sotawall Limited, a Canadian subsidiary.

Deferred tax assets and deferred tax liabilities at February 25, 2023 and February 26, 2022 were:

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Deferred compensation 9,666 8,602

Depreciation 509 —

Employment tax accrual 1,546 1,483

Section 174 capitalized costs 12,222 —

Goodwill and other intangibles 4,316 13,237

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Operating lease liabilities 13,639 13,769

(In thousands) 2023 2022

Net operating losses and tax credits 11,459 8,580

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Deferred tax liabilities

Accrued expenses 558 1,095

Goodwill and other intangibles 2,516 3,263

Depreciation 21,965 26,095

Operating lease, right-of-use assets 12,660 12,768

Bad debt 8,262 —

Prepaid expenses 2,467 3,015

Other 3,546 3,074

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A valuation allowance of $ 8.4 million has been established for these net operating loss carryforwards due to the uncertainty of the use of the tax benefits in future periods.

The Tax Cuts and Jobs Act of 2017 ("TCJA") requires taxpayers to capitalize and amortize research and development costs pursuant to Internal Revenue Code ("IRC") Section 174.

Although Congress may consider legislation that would defer capitalization and amortization requirements to later years, we have no assurance that the requirement will be repealed or otherwise modified.

The requirement was effective for the company beginning 2/27/2022.

For the tax year ended 2/25/2023, the Company recorded an increase to income tax payable as well as deferred tax assets of approximately $ 12.2 million due to Section 174 capitalization.

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.

This has resulted in valuation allowances being recorded against DTAs in prior years in Brazil, Canada and various states.

During the second quarter of fiscal 2023, the Company recorded a worthless stock deduction related to the Sotawall business.

Additionally, the Company concluded that a portion of the Canadian DTAs were more likely than not to be realized.

The related valuation allowance was reduced by $ 8.3 million, as we expect to realize this amount in the future.

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

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subsidiaries to be indefinitely invested outside of the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and specific plans for reinvestment of those subsidiary earnings.

Should the Company decide to repatriate the foreign earnings, it would need to adjust the income tax provision in the period it was determined that the earnings will no longer be indefinitely invested outside the U.S.

Should the Company decide to repatriate the foreign earnings, it would need to increase the income tax provision in the period it was determined that the earnings will no longer be indefinitely invested outside the U.S.

If we were to prevail on all unrecognized tax benefits recorded, $ 3.8 million, $ 1.7 million and $ 2.2 million for fiscal 2023, 2022 and 2021, respectively, would benefit the effective tax rate.

Also included in the balance of unrecognized tax benefits for fiscal 2023, 2022 and 2021 are $ 1.5 million, $ 1.7 million, and $ 1.6 million, respectively, of tax benefits that, if recognized, would result in decreases to deferred taxes.

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

For fiscal 2022, 2021 and 2020, we accrued penalties and interest related to unrecognized tax benefits of $ 0.3 million.

For fiscal 2023, 2022 and 2021, we accrued penalties and interest related to unrecognized tax benefits of $ 0.4 million, $ 0.3 million, and $ 0.3 million, respectively.

The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:

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Gross increases based on tax positions related to the current year 291 420 429

Gross decreases based on tax positions related to the current year ( 27 ) — —

Settlements — ( 147 ) ( 96 )

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Gross unrecognized tax benefits at end of year $ 5,312 $ 3,321 $ 3,755

On March 27, 2020, the U.S.

enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in response to the COVID-19 pandemic.

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.

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

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We have four reporting segments:

• The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems comprising the outside skin and entrances of commercial, institutional and high-end multi-family residential buildings.

• The Architectural Glass segment fabricates coated, high-performance glass used globally in customized window and wall systems comprising the outside skin of commercial, institutional and high-end multi-family residential buildings.

• The Architectural Services segment provides full-service installation of the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings.

• The Large-Scale Optical Technologies (LSO) segment manufactures value-added glass and acrylic products for framing and display applications.

• The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum window, curtainwall, storefront and entrance systems for the exterior of buildings.

• The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems.

• The Architectural Glass segment coats and fabricates high-performance glass used in custom window and wall systems on commercial buildings.

• The Large-Scale Optical (LSO) segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets.

The segment results for fiscal 2022 and 2021 were recast for comparability.

(In thousands) 2023 2022 2021

Architectural Framing Systems $ 649,778 $ 546,557 $ 508,770

Architectural Glass 309,241 330,256 387,191

Architectural Services 410,627 407,421 358,685

Architectural Glass 316,554 309,241 330,256

Large-Scale Optical 104,215 101,673 70,050

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Total $ 1,440,696 $ 1,313,977 $ 1,230,774

Operating (Loss) Income

(In thousands) 2023 2022 2021

Operating Income (Loss)

Architectural Framing Systems $ 81,875 $ 38,088 $ ( 29,030 )

Architectural Glass 1,785 18,678 20,760

Architectural Services 18,140 ( 22,071 ) 15,451

Architectural Glass 28,610 1,785 18,678

Large-Scale Optical 25,348 23,618 31,203

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Architectural Framing Systems $ 19,386 $ 20,361 $ 21,532

Architectural Glass 14,564 15,102 13,570

Architectural Services 3,953 7,495 7,196

Architectural Glass 11,964 14,564 15,102

Large-Scale Optical 3,088 3,185 3,338

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Architectural Framing Systems $ 11,432 $ 7,344 $ 9,871

Architectural Glass 5,865 9,574 19,862

Architectural Services 3,683 3,449 1,516

Architectural Glass 5,613 5,865 9,574

Large-Scale Optical 13,474 2,250 869

1 unchanged sentence

Total $ 45,177 $ 21,841 $ 26,165

(In thousands) 2022 2021 2020

Identifiable Assets

Architectural Framing Systems $ 426,946 $ 414,012 $ 396,664

Architectural Glass 225,362 271,520 291,104

Architectural Services 141,840 114,120 194,409

Architectural Glass 207,730 225,362 271,520

Large-Scale Optical 69,035 56,926 64,474

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Total $ 915,365 $ 887,863 $ 1,015,099

Due to the varying combinations and integration of individual window, storefront and curtainwall systems, the Company has determined that it is impractical to report product revenues generated by class of product beyond the segment revenues currently reported.

Due to the varying combinations and integration of individual window, storefront and curtainwall systems, it is impractical to report product revenues generated by class of product beyond the segment revenues currently reported.

Segment operating income is equal to net sales less cost of sales and operating expenses.

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

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 Services segment results include $ 49.5 million and $ 17.1 million of impairment charges in fiscal 2022 and fiscal 2021, respectively.

Architectural Framing Systems segment results include $ 53.0 million of impairment charges in fiscal 2021 and $ 1.7 million of restructuring charges in fiscal 2022, with no impairment or restructuring charges included in fiscal 2023.

Architectural Glass segment results include $ 0.1 million and $ 27.1 million of restructuring charges in fiscal 2023 and fiscal 2022, 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.

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Total $ 1,440,696 $ 1,313,977 $ 1,230,774

(In thousands) 2023 2022 2021

Long-Lived Assets

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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.

During the first quarter of fiscal 2023, we completed the execution of these plans with the sale of the remaining manufacturing assets at our Architectural Glass location, in Dallas, Texas, for $ 4.1 million.

The remaining assets had a carrying value of $ 3.4 million, and we recognized a gain on the sale of approximately $ 0.6 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 25, 2023, we incurred $ 0.1 million of additional pre-tax costs associated with the finalization of these restructuring plans.

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 25, 2023

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

Termination benefits — 116 — 116

Other restructuring charges 244 1,935 644 2,823

Total restructuring charges $ — $ 116 $ — $ 116

February 26, 2022

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

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

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

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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.

All remaining balances are expected to be paid within fiscal 2024.

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

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

Other adjustments ( 865 ) — — ( 865 )

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

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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