2 unchanged sentences
Financial Statements and Supplementary Data in this Form 10-K.
−Removed: Refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K for the fiscal year ended February 25, 2023, for discussion of the results of operations for the year ended February 25, 2023, compared to the year ended February 26, 2022, which is incorporated by reference herein.
+Added: Refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K for the fiscal year ended March 2, 2024, for discussion of the results of operations for the year ended March 2, 2024, compared to the year ended February 25, 2023, which is incorporated by reference herein.
We have included in this report measures of financial performance that are not defined by GAAP.
4 unchanged sentences
Management uses these non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, as a factor in determining executive compensation, and to provide enhanced transparency to the investment community.
−Removed: We are a leading provider of architectural products and services for enclosing buildings, and high-performance glass and acrylic products used for preservation, energy conservation, and enhanced viewing.
−Removed: Our four reporting segments are:
−Removed: Architectural Framing Systems, Architectural Glass, Architectural Services and Large-Scale Optical (LSO).
−Removed: In fiscal 2024, we made further progress toward our strategic goals and financial targets we established in fiscal 2021.
−Removed: We continued the deployment of the Apogee Management System across our business, supporting sustainable cost and productivity improvements.
−Removed: We invested in organic growth initiatives, including capacity expansion in the Large-Scale Optical Segment and geographic growth in Architectural Services.
−Removed: We increased our focus on differentiated products and services, and continued to diversify the mix of architectural projects that we serve while leaning more heavily into higher, value-added products.
−Removed: We also advanced several initiatives to strengthen our core capabilities, driving the standardization of key business processes and systems, and strengthening talent management and leadership development programs.
−Removed: On January 30, 2024, the Company announced strategic actions to further streamline its business operations, enable a more efficient cost model, and better position the Company for profitable growth (referred to as “Project Fortify”).
−Removed: During the fourth quarter, the Company incurred $12.4 million of pre-tax charges related to Project Fortify, of which $5.5 million is included in cost of sales and $6.9 million is included in selling, general, and administrative (SG&A) expenses.
−Removed: The Company expects a total of $16 million to $18 million of pre-tax charges in connection with Project Fortify, leading to annualized cost savings of $12 million to $14 million.
−Removed: We expect that approximately 60% of these savings will be realized in fiscal 2025, with the remainder in fiscal 2026.
−Removed: We expect that approximately 70% of the savings will be realized in the Architectural Framing Systems segment, 20% in the Architectural Services Segment, and 10% in Corporate and other, with the plan to be substantially complete in the third quarter of fiscal 2025.
+Added: We are a leading provider of architectural products and services for enclosing buildings, and high-performance coating products used in applications for preservation, protection and enhanced viewing.
+Added: During the fourth quarter of fiscal 2025, we changed the names of two reportable segments to better reflect our product offerings and capabilities.
+Added: The previously named Architectural Framing Systems Segment is now referred to as the Architectural Metals Segment.
+Added: The previously named Large-Scale Optical Segment is now referred to as the Performance Surfaces Segment.
+Added: The remaining two segments, Architectural Services Segment and Architectural Glass Segment remain unchanged.
+Added: As part of these changes, there were no changes to the products or brands included within each of the reportable segments.
+Added: In the fourth quarter of fiscal 2024, the Company announced strategic actions to streamline its business operations, enable a more efficient cost model, and better position the Company for profitable growth (referred to as “Project Fortify”).
+Added: During the fourth quarter of fiscal 2024, the Company incurred $12.4 million of pre-tax charges related to Project Fortify, of which $5.5 million is included in cost of sales and $6.9 million is included in selling, general, and administrative (SG&A) expenses.
+Added: During fiscal 2025, the Company incurred $4.3 million of pre-tax charges related to Project Fortify, of which $2.5 million is included in cost of sales and $1.8 million is included in SG&A expenses.
+Added: The Company completed Project Fortify during the fourth quarter of fiscal 2025, incurring a total of $16.7 million and delivering estimated annualized cost savings of approximately $14 million.
+Added: On April 23, 2025, we announced an extension of Project Fortify ("Project Fortify Phase 2" or "Phase 2") to drive further cost efficiencies, primarily in the Architectural Metals and Architectural Services Segments.
+Added: Phase 2 will focus on further optimizing our operating footprint and aligning resources to enable a more effective operating model.
+Added: We expect the actions of Phase 2 to incur approximately $24 million to $26 million of pre-tax charges of which approximately $8 million are expected to be non-cash charges.
+Added: Phase 2 is expected to deliver annualized pre-tax cost savings of approximately $13 million to $15 million.
+Added: We expect the actions associated with Phase 2 to be substantially completed by the end of the fourth quarter of fiscal 2026.
+Added: See Note 18 for additional information.
+Added: During the third quarter of fiscal 2025, we acquired UW Solutions for $240.9 million.
+Added: UW Solutions is a U.S.
+Added: based, vertically integrated manufacturer of high-performance coated substrates, differentiated by its proprietary formulations and coating application processes.
+Added: The business serves a broad range of customers in attractive end markets, including building products for distribution centers and manufacturing facilities, as well as premium products for the graphic arts market.
+Added: See Note 17 for additional information.
+Added: As a result of a March 2025 appellate court decision confirming a December 2022 arbitration award, the Company paid the arbitration award, including accrued post-judgment interest, in the amount of $24.7 million, on April 7, 2025.
+Added: As a result of the decision, we recorded expense of $9.4 million, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.
+Added: This impact was recorded in cost of goods sold in the fourth quarter of fiscal 2025.
Results of Operations
1 unchanged sentence
dollar amounts and percentages reflecting annual changes in such amounts and as a percentage of net sales in each fiscal year.
−Removed: Our fiscal year ends on the Saturday closest to the last day of February, or as otherwise determined by the Board of Directors.
−Removed: Fiscal 2024 consisted of 53 weeks, while fiscal 2023 and fiscal 2022 each consisted of 52 weeks.
+Added: Our fiscal year ends on the Saturday closest to the last day of February.
+Added: Fiscal 2025 and fiscal 2023 each consisted of 52 weeks, while fiscal 2024 consisted of 53 weeks.
(Dollars in thousands) 2025 2024 2023 2025 vs.
3 unchanged sentences
Selling, general and administrative expenses 241,783 233,295 209,485 3.6 % 11.4 %
−Removed: Impairment expense on goodwill and intangible assets — — 49,473 N/M (100.0) %
Operating income 118,110 133,833 125,788 (11.7) % 6.4 %
1 unchanged sentence
Other (income) expense, net
−Removed: (2,089) 1,507 4,409 N/M (65.8) %
+Added: (623) (2,089) 1,507 N/M N/M
Earnings before income taxes 112,574 129,253 116,621 (12.9) % 10.8 %
10 unchanged sentences
Selling, general and administrative expenses 17.8 16.5 14.5
−Removed: Impairment expense on goodwill and intangible assets — — 3.8
Operating income 8.7 9.4 8.7
1 unchanged sentence
Other (income) expense, net
−Removed: (0.1) 0.1 0.3
Earnings before income taxes 8.3 9.1 8.1
3 unchanged sentences
24.4 % 22.9 % 10.7 %
+Added: The following table summarizes the impact that different items had on our net sales for fiscal 2025.
+Added: All net sales for fiscal 2024 were organic.
+Added: (In thousands, except percentages)
+Added: Architectural Metals
+Added: Architectural Services Architectural Glass
+Added: Performance Surfaces Intersegment eliminations
+Added: Fiscal 2024 net sales
+Added: $ 601,736 $ 378,422 $ 378,449 $ 99,223 $ (40,888) $ 1,416,942
+Added: Organic business (1)
+Added: (66,113) 50,332 (49,124) (6,835) 12,512 (59,228)
+Added: Impact of 53rd week (2)
+Added: (10,914) (8,893) (7,128) (2,241) 472 (28,704)
+Added: Acquisition (3)
+Added: — — — 31,984 — 31,984
+Added: Fiscal 2025 net sales
+Added: $ 524,709 $ 419,861 $ 322,197 $ 122,131 $ (27,904) $ 1,360,994
+Added: Total net sales growth (decline)
+Added: (12.8) % 11.0 % (14.9) % 23.1 % (31.8) % (3.9) %
+Added: Organic business (1)
+Added: (11.0) % 13.3 % (13.0) % (6.9) % (30.6) % (4.2) %
+Added: Impact of 53rd week (2)
+Added: (1.8) % (2.4) % (1.9) % (2.3) % (1.2) % (2.0) %
+Added: Acquisition (3)
+Added: — % — % — % 32.2 % — % 2.3 %
+Added: Organic business includes net sales associated with acquired product lines or businesses that occur after the first twelve months from the date the product line or business is acquired and net sales from internally developed product lines or businesses.
+Added: Amount is estimated based on average weekly net sales of the final month of the period.
+Added: On November 4, 2024, we completed the acquisition of UW Solutions.
+Added: For additional information see Note 17 to the accompanying consolidated financial statements.
Comparison of Fiscal 2025 to Fiscal 2024
−Removed: • Consolidated net sales were $1.42 billion compared to $1.44 billion, a decrease of 1.6%, primarily reflecting lower volumes, partially offset by improved product mix and higher pricing.
−Removed: • Gross profit margin improved to 25.9% of net sales, compared to 23.3%.
−Removed: The gross margin improvement was primarily driven by higher pricing, improved mix and the impact of lower costs from saving initiatives.
−Removed: These items were partially offset by the impact of lower volume, a less favorable mix of projects in the Architectural Services Segment, $5.5 million of restructuring costs related to Project Fortify, and the inflationary impact of higher costs.
−Removed: • SG&A expense increased $23.8 million to 16.5% of net sales, compared to 14.5%.
−Removed: The increase in expense was primarily due to increased salaries and benefits costs as well as $6.9 million in restructuring costs related to Project Fortify.
−Removed: • Operating income grew 6.4% to $133.8 million, and operating margin increased 70 basis points to 9.4%, driven by higher pricing, improved product mix, and the impact of lower costs from saving initiatives.
−Removed: These items were partially offset by a less favorable mix of projects in the Architectural Services Segment, increased salaries and benefits costs, $12.4 million of restructuring costs related to Project Fortify, and the inflationary impact of higher costs.
−Removed: Adjusted operating margin increased by 160 basis points, to 10.3%.
−Removed: • Other income was $2.1 million, reflecting the impact of a $4.7 million pre-tax gain related to a New Markets Tax Credit, partially offset by an investment valuation adjustment.
−Removed: • Net interest expense was $6.7 million, compared to $7.7 million driven by a lower average debt level, partially offset by a higher average interest rate.
−Removed: • The effective tax rate was 22.9%, compared to 10.7%.
−Removed: During fiscal 2023, we claimed certain tax deductions, including a worthless stock loss deduction and other discrete tax benefits, related to our investment in Sotawall Limited, a Canadian subsidiary.
−Removed: These deductions generated a net tax benefit of $14.8 million, and reduced our effective tax rate for fiscal 2023 by approximately 13.1 percentage points.
−Removed: • Diluted EPS was $4.51 compared to $4.64 driven by higher operating income, which was more than offset by a higher effective tax rate.
+Added: • Consolidated net sales were $1.36 billion compared to $1.42 billion, a decrease of 3.9%, primarily reflecting the unfavorable impact of the additional week in the prior year of approximately $28.7 million or 2.0%, and lower volume, primarily in Architectural Metals and Architectural Glass.
+Added: These items were partially offset by net sales growth in Architectural Services, and a $32.0 million inorganic sales contribution from the acquisition of UW Solutions.
+Added: • Gross margin increased to 26.4% of net sales, compared to 25.9%.
+Added: The gross margin improvement was primarily driven by a more favorable mix of projects and the net favorable impact of cumulative catch-up adjustments for changes in profitability estimates of long-term contracts in Architectural Services, and lower quality and insurance-related costs, as well as lower restructuring costs from Project Fortify.
+Added: These items were partially offset by $9.4 million of expense related to an arbitration award, as well as unfavorable sales leverage impact of lower volume, higher lease costs, and $1.7 million of acquisition-related expenses.
+Added: • SG&A expense increased $8.5 million to 17.8% of net sales, compared to 16.5% of net sales.
+Added: The increase in SG&A as a percentage of net sales was primarily due to the impact of $8.6 million of acquisition-related expenses, impairment charges of $7.6 million, higher amortization expense and the unfavorable sales leverage impact of lower volume partially offset by lower restructuring charges, lower bad debt expense, and lower long-term incentive costs.
+Added: • Operating income was $118.1 million and operating margin declined to 8.7%.
+Added: The decline operating margin was primarily due to the unfavorable sales leverage impact of lower volume, $10.3 million of acquisition-related expenses, $9.4 million of expense related to an arbitration award, and $7.6 million impairment charges related to strategic rebranding.
+Added: These items were partially offset by a more favorable mix of projects and the net favorable impact of cumulative catch-up adjustments for changes in profitability estimates of long-term contracts in Architectural Services, lower quality and insurance-related costs, lower bad debt expense, and lower restructuring charges from Project Fortify of $8.1 million.
+Added: Adjusted operating income grew 2.4% to $149.8 million, and adjusted operating margin improved to 11.0%.
+Added: • Interest expense, net was $6.2 million, compared to $6.7 million, primarily driven by increased interest income from higher average levels of invested cash, partially offset by the impact of the write-off of unamortized financing fees of $0.5 million related to our previous credit facility.
+Added: • Other income was $0.6 million, compared to $2.1 million.
+Added: The lower income in fiscal 2025 was primarily due pre-tax gain related to a New Markets Tax Credit of $4.7 million, partially offset by the unfavorable impact of an investment market valuation adjustment, both recognized in the prior year period.
+Added: • Income tax expense as a percentage of earnings before income tax was 24.4%, compared to 22.9% for fiscal 2024.
+Added: The increase in the effective tax rate was primarily due to an increase in tax expense for discrete items.
+Added: • Diluted EPS was $3.89, compared to $4.51 driven by lower operating income, lower other income, and a higher effective tax rate.
Adjusted diluted EPS grew 4.2% to $4.97.
2 unchanged sentences
Segment net sales
−Removed: Architectural Framing Systems $ 601,736 $ 649,778 $ 546,557 (7.4) % 18.9 %
−Removed: Architectural Glass 378,449 316,554 309,241 19.6 % 2.4 %
+Added: Architectural Metals $ 524,709 $ 601,736 $ 649,778 (12.8) % (7.4) %
Architectural Services 419,861 378,422 410,627 11.0 % (7.8) %
−Removed: Large-Scale Optical 99,223 104,215 101,673 (4.8) % 2.5 %
+Added: Architectural Glass 322,197 378,449 316,554 (14.9) % 19.6 %
+Added: Performance Surfaces 122,131 99,223 104,215 23.1 % (4.8) %
Intersegment eliminations (27,904) (40,888) (40,478) (31.8) % 1.0 %
1 unchanged sentence
Segment operating income (loss)
−Removed: Architectural Framing Systems $ 64,833 $ 81,875 $ 38,088 (20.8) % 115.0 %
+Added: Architectural Metals $ 42,466 $ 64,833 $ 81,875 (34.5) % (20.8) %
+Added: Architectural Services 30,046 11,840 18,140 153.8 % (34.7) %
Architectural Glass 59,274 68,046 28,610 (12.9) % 137.8 %
−Removed: Architectural Services 11,840 18,140 (22,071) (34.7) % N/M
−Removed: Large-Scale Optical 24,233 25,348 23,618 (4.4) % 7.3 %
+Added: Performance Surfaces 19,611 24,233 25,348 (19.1) % (4.4) %
Corporate and Other (33,287) (35,119) (28,185) (5.2) % 24.6 %
1 unchanged sentence
Segment operating margin
−Removed: Architectural Framing Systems 10.8 % 12.6 % 7.0 %
−Removed: Architectural Glass 18.0 % 9.0 % 0.6 %
+Added: Architectural Metals 8.1 % 10.8 % 12.6 %
Architectural Services 7.2 % 3.1 % 4.4 %
−Removed: Large-Scale Optical 24.4 % 24.3 % 23.2 %
+Added: Architectural Glass 18.4 % 18.0 % 9.0 %
+Added: Performance Surfaces 16.1 % 24.4 % 24.3 %
Corporate and other
3 unchanged sentences
We report net sales intersegment eliminations separately to exclude these sales from our consolidated total.
−Removed: Segment operating income is equal to net sales, less cost of goods sold, SG&A, and any asset impairment charges associated with the segment.
+Added: Segment operating income is equal to net sales, less cost of goods sold, and SG&A.
Segment operating income includes operating income related to intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level.
1 unchanged sentence
Operating income does not include other income or expense, interest expense or a provision for income taxes.
−Removed: Architectural Framing Systems
−Removed: Comparison of Fiscal 2024 to Fiscal 2023
−Removed: • Net sales were $601.7 million, compared to $649.8 million, primarily reflecting lower volume, partially offset by more favorable sales mix and improved pricing.
−Removed: • Operating income was $64.8 million and operating margin decreased 180 basis points to 10.8% of net sales, primarily driven by the impact of lower volume, a less favorable mix of projects and $6.0 million of restructuring costs related to Project Fortify.
−Removed: These items were partially offset by improved sales mix and pricing, as well as the impact of lower costs from saving initiatives.
−Removed: Adjusted operating income was $70.8 million and adjusted operating margin decreased 80 basis points to 11.8% of net sales.
−Removed: Architectural Glass
+Added: Architectural Metals
Comparison of Fiscal 2025 to Fiscal 2024
−Removed: • Net sales were $378.4 million, compared to $316.6 million, primarily driven by improved pricing and a more favorable sales mix.
−Removed: • Operating income was $68.0 million and operating margin increased 900 basis points to 18.0% of net sales, primarily driven by improved pricing and mix, partially offset by cost inflation.
+Added: • Net sales were $524.7 million, compared to $601.7 million.
+Added: The decline in net sales was primarily driven by reduced volume due to exiting certain lower-margin product lines as part of Project Fortify and lower end market demand, the impact of one less week of net sales in the current year, and a less favorable product mix.
+Added: • Operating income was $42.5 million, or 8.1% of net sales, compared to $64.8 million, or 10.8% of net sales.
+Added: The decline in operating margin was primarily driven by $7.6 million of impairment charges, the unfavorable sales leverage impact of lower volume and a less favorable product mix, partially offset by favorable material costs, lower short-term incentive costs, lower bad debt expense, lower quality-related expense, and lower restructuring costs.
+Added: Adjusted operating income was $54.1 million, or 10.3% of net sales, compared to $70.8 million, or 11.8% of net sales.
Architectural Services
Comparison of Fiscal 2025 to Fiscal 2024
−Removed: • Net sales were $378.4 million, compared to $410.6 million, primarily reflecting lower project volume and a less favorable mix of projects.
−Removed: • Operating income was $11.8 million and operating margin decreased 130 basis points to 3.1% of net sales primarily driven by lower project volume, a less favorable mix of projects, and $2.5 million of restructuring costs related to Project Fortify, partially offset by lower short-term incentive compensation expense.
−Removed: Adjusted operating income was $14.4 million and adjusted operating margin decreased 60 basis points to 3.8% of net sales.
−Removed: Large-Scale Optical (LSO)
+Added: • Net sales were $419.9 million, compared to $378.4 million.
+Added: The increase in net sales was primarily due to increased volume, a more favorable mix of projects and the net favorable impact of cumulative catch-up adjustments for changes in profitability estimates of long-term contracts, partially offset by the impact of one less week of net sales in the current year.
+Added: • Operating income was $30.0 million, or 7.2% of net sales, compared to $11.8 million or 3.1% of net sales.
+Added: The improvement in operating margin was primarily driven by a more favorable mix of projects, the favorable impact of cumulative catch-up adjustments on our longer-term contract estimates of $10.5 million, and lower restructuring charges, partially offset by higher short-term incentive compensation expense and higher lease costs.
+Added: • For the years ended March 1, 2025 and March 2, 2024, gross favorable and unfavorable cumulative catch-up adjustments on our longer-term contracts for changes in estimates were as follows:
+Added: (in thousands)
+Added: Gross favorable adjustments
+Added: $ 28,430 $ 19,058
+Added: Gross unfavorable adjustments
+Added: (12,123) (13,298)
+Added: Net adjustments
+Added: $ 16,307 $ 5,760
+Added: Architectural Glass
Comparison of Fiscal 2025 to Fiscal 2024
−Removed: • Net sales were $99.2 million, compared to $104.2 million, primarily reflecting lower volume due to slower customer demand in the retail markets, partially offset by favorable mix and pricing.
−Removed: • Operating income was $24.2 million and operating margin increased 10 basis points to 24.4% of net sales, compared to $25.3 million, or 24.3% of net sales, primarily driven by favorable mix and pricing, partially offset by the impact of lower volume.
+Added: • Net sales were $322.2 million, compared to $378.4 million.
+Added: The decrease in net sales was primarily driven by lower volume due to lower end-market demand and the impact of one less week of net sales in the current year, partially offset by improved pricing.
+Added: • Operating income decreased to $59.3 million, or 18.4% of net sales, compared to $68.0 million, or 18.0% of net sales.
+Added: The improvement in operating margin was primarily driven by improved pricing, improved productivity, and lower quality-related costs, partially offset by the unfavorable sales leverage impact of lower volume.
+Added: Performance Surfaces
+Added: Comparison of Fiscal 2025 to Fiscal 2024
+Added: • Net sales were $122.1 million, compared to $99.2 million.
+Added: The increase in net sales was primarily driven by $32.0 million of inorganic sales from UW Solutions, partially offset by lower volume in the retail channel and the impact of one less week of net sales in the current year.
+Added: • Operating income was $19.6 million, or 16.1% of net sales, compared to $24.2 million, or 24.4% of net sales.
+Added: The decline in operating margin was primarily driven by $4.5 million in acquisition-related costs and the sales leverage impact of lower organic volume.
Corporate and Other
Comparison of Fiscal 2025 to Fiscal 2024
−Removed: • Corporate and other expense was $35.1 million, compared to $28.2 million, primarily driven by $3.9 million of restructuring costs related to Project Fortify, increased compensation expense and higher consulting costs, partially offset by lower insurance-related costs.
+Added: • Corporate and Other expense was $33.3 million, compared to $35.1 million.
+Added: The decrease was primarily due to lower insurance-related costs, lower incentive compensation expense, and lower restructuring costs, partially offset by $9.4 million of expense related to an arbitration award, and $5.8 million in acquisition-related costs.
Backlog is an operating measure used by management to assess future potential sales revenue.
3 unchanged sentences
Backlog should not be used as the sole indicator of future revenue because we have a substantial number of projects with short lead times that book-and-bill within the same reporting period that are not included in backlog.
−Removed: Architectural Framing Systems
−Removed: As of fiscal 2024 year-end, segment backlog was $200.7 million, compared to $243.3 million at the end of the prior year, reflecting a decrease in order volume.
−Removed: As part of the actions of Project Fortify, we expect to phase out this segment's longer-cycle project business over time as the segment eliminates certain lower-margin product and service offerings.
−Removed: As a result, the majority of projects in this segment will generally be completed in six months or less and backlog as an operating measure will be less effective in assessing future potential sales revenue.
−Removed: Effective in the first quarter of fiscal 2025, backlog will no longer be reported for this segment.
Architectural Services
−Removed: As of fiscal 2024 year-end, backlog in the Architectural Services Segment was $807.8 million, compared to $726.7 million at the end of the prior year, primarily driven by several large project awards in the current year.
+Added: As of fiscal 2025 year-end, backlog in the Architectural Services Segment was $720.3 million, compared to $807.8 million at the end of the prior year.
Reconciliations of Non-GAAP Financial Measures
2 unchanged sentences
• We use adjusted operating income, adjusted operating margin, adjusted net earnings, and adjusted diluted EPS to provide meaningful supplemental information about our operating performance by excluding amounts that are not considered part of core operating results to enhance comparability of results from period to period.
−Removed: • Adjusted EBITDA represents adjusted net earnings before interest, taxes, depreciation, and amortization.
−Removed: We believe adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about our core operating performance.
+Added: • Adjusted EBITDA and adjusted EBITDA margin metrics provide useful information to investors and analysts about our core operating performance.
• Adjusted return on invested capital (ROIC) is defined as adjusted operating income net of tax, divided by average invested capital.
6 unchanged sentences
(In thousands, except percentages)
−Removed: Architectural Framing Systems Architectural Glass Architectural Services LSO Corporate and other
+Added: Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and other
Operating income $ 42,466 $ 30,046 $ 59,274 $ 19,611 $ (33,287) $ 118,110
+Added: Acquisition-related costs (1)
+Added: Transaction — — — — 4,424 4,424
+Added: Integration — — — 706 1,349 2,055
+Added: Backlog amortization — — — 2,340 — 2,340
+Added: Inventory step-up — — — 1,483 — 1,483
+Added: Total Acquisition-related costs — — — 4,529 5,773 10,302
Restructuring costs (2)
4,024 (489) — — 788 4,323
+Added: Impairment expense (3)
+Added: 7,634 — — — — 7,634
+Added: Arbitration award expense (4)
+Added: — — — — 9,393 9,393
Adjusted operating income $ 54,124 $ 29,557 $ 59,274 $ 24,140 $ (17,333) $ 149,762
1 unchanged sentence
8.1 % 7.2 % 18.4 % 16.1 % N/M 8.7 %
+Added: Acquisition-related costs (1)
+Added: Transaction — % — % — % — % N/M 0.3 %
+Added: Integration — % — % — % 0.6 % N/M 0.2 %
+Added: Backlog amortization — % — % — % 1.9 % N/M 0.2 %
+Added: Inventory step-up — % — % — % 1.2 % N/M 0.1 %
+Added: Total Acquisition-related costs — — — 3.7 % N/M 0.8 %
Restructuring costs (2)
0.8 % (0.1) % — % — % N/M 0.3 %
+Added: Impairment expense (3)
+Added: 1.5 % — % — % — % N/M 0.6 %
+Added: Arbitration award expense (4)
+Added: — % — % — % — % N/M 0.7 %
Adjusted operating margin
10.3 % 7.0 % 18.4 % 19.8 % N/M 11.0 %
−Removed: Year Ended February 25, 2023 (52 weeks)
−Removed: Architectural Framing Systems Architectural Glass Architectural Services LSO Corporate and other
+Added: Year Ended March 2, 2024 (53 weeks)
+Added: Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and other
Operating income $ 64,833 $ 11,840 $ 68,046 $ 24,233 $ (35,119) $ 133,833
+Added: Restructuring costs (2)
5,970 2,526 — — 3,907 12,403
−Removed: Operating margin (2)
+Added: Adjusted operating income $ 70,803 $ 14,366 $ 68,046 $ 24,233 $ (31,212) $ 146,236
+Added: Operating margin 10.8 % 3.1 % 18.0 % 24.4 % N/M 9.4 %
+Added: Restructuring costs (2)
1.0 % 0.7 % — % — % N/M 0.9 %
−Removed: (1) Restructuring costs related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs.
−Removed: For fiscal year 2023, we did not make any adjustments to operating income or operating margin as calculated in accordance with GAAP.
+Added: Adjusted operating margin
+Added: 11.8 % 3.8 % 18.0 % 24.4 % N/M 10.3 %
+Added: (1) Acquisition-related costs include:
+Added: • Transaction costs related to the UW Solutions acquisition.
+Added: • Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
+Added: • Backlog amortization is related the value attributed to contracting the backlog purchased in the UW Solutions acquisition.
+Added: These costs were amortized in SG&A over the period that the contracted backlog was shipped.
+Added: • Inventory step-up is related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value.
+Added: These costs were expensed to cost of goods sold over the period the inventory was sold.
+Added: (2) Restructuring charges related to Project Fortify, including $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025.
+Added: Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in fiscal 2024.
+Added: Impairment expense for intangible assets in the Architectural Metals Segment.
+Added: Expense related to an arbitration award which represent the impact of the award amount net of existing reserves and estimated insurance proceeds.
Reconciliation of Non-GAAP Financial Measures
1 unchanged sentence
Diluted per share amounts
−Removed: March 2, 2024 February 25, 2023 March 2, 2024 February 25, 2023
+Added: March 1, 2025 March 2, 2024 March 1, 2025 March 2, 2024
(In thousands, except per share amounts)
(52 weeks) (53 weeks)
+Added: (52 weeks) (53 weeks)
Net earnings $ 85,052 $ 99,613 $ 3.89 $ 4.51
+Added: Acquisition-related costs (1)
+Added: Transaction 4,424 — 0.20 —
+Added: Integration 2,055 — 0.09 —
+Added: Backlog amortization 2,340 — 0.11 —
+Added: Inventory step-up 1,483 — 0.07 —
+Added: Total Acquisition-related costs 10,302 — 0.47 —
Restructuring costs (2)
4,323 12,403 0.20 0.56
−Removed: NMTC Settlement Gain (2)
+Added: Impairment expense (3)
7,634 — 0.35 —
−Removed: Worthless stock deduction and other discrete tax benefits (3)
+Added: Arbitration award expense (4)
9,393 — 0.43 —
+Added: NMTC Settlement Gain (5)
+Added: — (4,687) — (0.21)
Income tax impact on above adjustments (6)
2 unchanged sentences
Shares outstanding for EPS 21,891 22,091
−Removed: (1) Restructuring costs related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs.
+Added: (1) Acquisition-related costs include:
+Added: • Transaction costs related to the UW Solutions acquisition.
+Added: • Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
+Added: • Backlog amortization is related the value attributed to contracting the backlog purchased in the UW Solutions acquisition.
+Added: These costs were amortized in SG&A over the period that the contracted backlog was shipped.
+Added: • Inventory step-up is related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value.
+Added: These costs were expensed to cost of goods sold over the period the inventory was sold.
+Added: (2) Restructuring charges related to Project Fortify, including $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025.
+Added: Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in fiscal 2024.
+Added: (3) Impairment expense for intangible assets in the Architectural Metals Segment.
+Added: (4) Expense related to an arbitration award which represent the impact of the award amount net of existing reserves and estimated insurance proceeds.
(5) Realization of a New Markets Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other (income) expense, net.
−Removed: (3) Worthless stock deduction and related discrete income tax benefits from the impairment of the Sotawall business in fiscal 2023, which was recorded in income tax expense.
−Removed: Income tax impact calculated using an estimated statutory tax rate of 24.5%, which reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred.
+Added: (6) Income tax impact reflects the estimated tax rate for the jurisdictions in which the charge or income occurred.
Reconciliation of Non-GAAP Financial Measures
1 unchanged sentence
(Earnings before interest, taxes, depreciation and amortization)
−Removed: March 2, 2024 February 25, 2023
+Added: March 1, 2025 March 2, 2024
(In thousands) (52 weeks) (53 weeks)
4 unchanged sentences
EBITDA $ 163,341 $ 177,510
+Added: Acquisition-related costs (1)
+Added: Transaction 4,424 —
+Added: Integration 2,055 —
+Added: Inventory step-up 1,483 —
+Added: Total acquisition-related costs
Restructuring costs (2)
+Added: Impairment expense (3)
+Added: Arbitration award expense (4)
NMTC settlement gain (5)
1 unchanged sentence
Adjusted EBITDA Margin 14.2 % 13.1 %
−Removed: (1) Restructuring costs related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs.
+Added: (1) Acquisition-related costs include:
+Added: • Transaction costs related to the UW Solutions acquisition.
+Added: • Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
+Added: • Inventory step-up is related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value.
+Added: These costs were expensed to cost of goods sold over the period the inventory was sold.
+Added: (2) Restructuring charges related to Project Fortify, including $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025.
+Added: Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in fiscal 2024.
+Added: (3) Impairment expense for intangible assets in the Architectural Metals Segment.
+Added: (4) Expense related to an arbitration award which represent the impact of the award amount net of existing reserves and estimated insurance proceeds.
(5) Realization of a New Markets Tax Credit (NMTC) benefit during the second quarter of fiscal 2024, which was recorded in other income (expense), net.
1 unchanged sentence
Adjusted Return on Invested Capital Reconciliation
−Removed: March 2, 2024 February 25, 2023
−Removed: (In thousands, except percentages) (53 weeks)
−Removed: Operating income $ 133,833 $ 125,788
+Added: March 1, 2025 March 2, 2024
+Added: (In thousands, except percentages) (52 weeks) (53 weeks)
+Added: $ 85,052 $ 99,613
+Added: Interest expense, net (after tax) 4,619 5,002
+Added: Other income, net (after tax) (467) (1,567)
+Added: Net operating income after taxes 89,204 103,048
+Added: Acquisition-related costs (1)
Restructuring costs (2)
−Removed: Adjusted operating income $ 146,236 $ 125,788
−Removed: Tax adjustment (2)
+Added: Impairment expense (3)
+Added: Arbitration award expense (4)
+Added: Total adjustments
$ 31,652 $ 12,403
−Removed: Adjusted operating income after taxes $ 110,408 $ 94,970
+Added: Income tax impact on adjustments (5)
+Added: Adjusted net operating income after taxes
+Added: $ 113,024 $ 112,350
Average invested capital (6)
$ 757,178 $ 668,555
−Removed: Adjusted return on invested capital (ROIC) (4)
+Added: Return on invested capital (ROIC) (7)
11.8 % 15.4 %
−Removed: (1) Restructuring costs related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs.
−Removed: (2) Income tax impact calculated using an estimated statutory tax rate of 24.5%, which reflects the estimated blended statutory tax rate for the jurisdictions in which the charge or income occurred.
+Added: Adjusted ROIC (8)
+Added: 14.9 % 16.8 %
+Added: (1) Acquisition-related costs include:
+Added: • Transaction costs related to the UW Solutions acquisition.
+Added: • Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.
+Added: • Backlog amortization is related the value attributed to contracting the backlog purchased in the UW Solutions acquisition.
+Added: These costs were amortized in SG&A over the period that the contracted backlog was shipped.
+Added: • Inventory step-up is related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value.
+Added: These costs were expensed to cost of goods sold over the period the inventory was sold.
+Added: (2) Restructuring charges related to Project Fortify, including $1.1 million of employee termination costs and $3.2 million of other costs incurred in fiscal 2025.
+Added: Restructuring charges related to Project Fortify, including $6.2 million of asset impairment charges, $5.9 million of employee termination costs and $0.3 million of other costs incurred in fiscal 2024.
+Added: (3) Impairment expense for intangible assets in the Architectural Metals Segment.
+Added: (4) Expense related to an arbitration award which represent the impact of the award amount net of existing reserves and estimated insurance proceeds.
+Added: (5) Income tax impact reflects the estimated tax rate for the jurisdictions in which the charge or income occurred.
(6) Average invested capital represents a trailing five quarter average of total assets less average current liabilities (excluding current portion long-term debt).
−Removed: (4) Adjusted ROIC calculated by dividing adjusted operating income after taxes by average invested capital
+Added: (7) ROIC is calculated by dividing net operating income after taxes by average invested capital.
+Added: (8) Adjusted ROIC is calculated by dividing adjusted net operating income after taxes by average invested capital.
Liquidity and Capital Resources
1 unchanged sentence
Operating Activities.
−Removed: Net cash provided by operating activities was $204.2 million, compared to $102.7 million, primarily driven by favorable changes in working capital.
+Added: Net cash provided by operating activities was $125.2 million, compared to $204.2 million.
+Added: The decrease in net cash provided by operating activities was primarily driven by cash used for working capital.
Investing Activities.
Net cash used by investing activities was $265.9 million, compared to $43.7 million.
−Removed: Capital expenditures were the primary use of cash in fiscal 2024, largely driven by strategic investments to fund a capacity expansion in our Large-Scale Optical Segment and to enhance productivity through automation.
+Added: The increase in net cash used by investing activities was primarily related to $232.2 million of cash used for the acquisition of UW Solutions.
Financing Activities.
−Removed: Net cash used by financing activities was $144.6 million, compared to $91.0 million, primarily driven by higher net debt repayments in the current year period, partially offset by lower share repurchases.
+Added: Net cash provided by financing activities was $146.0 million, compared to $144.6 million of net cash used by financing activities.
+Added: The increase in net cash provided by financing activities was primarily driven by the proceeds of
+Added: $250.0 million from the delayed draw term loan utilized to finance the UW Solutions acquisition.
+Added: We returned $67.1 million of cash to shareholders through share repurchases and dividends, compared to $33.0 million in the prior year.
Additional Liquidity Considerations.
We periodically evaluate our liquidity requirements, cash needs and availability of debt resources relative to acquisition plans, significant capital plans, and other working capital needs.
−Removed: As of the end of fiscal 2024, we had a committed revolving credit facility in the U.S.
−Removed: with maximum borrowings of up to $385 million, with a maturity date of August 5, 2027, and two Canadian committed, revolving credit facilities totaling $25 million (USD).
−Removed: At March 2, 2024, we had outstanding borrowings under our revolving credit facility of $50.0 million, while there were no outstanding borrowings under the Canadian committed, revolving credit facilities.
−Removed: We are required to make periodic interest payments on our outstanding indebtedness, and future interest payments will be determined based on the amount of outstanding borrowings and prevailing interest rates during that time.
−Removed: Our revolving credit facilities contain two maintenance financial covenants that require us to stay below a maximum debt-to-EBITDA ratio of 3.25 and maintain a minimum ratio of EBITDA-to-interest expense of 3.00.
−Removed: Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis.
−Removed: At March 2, 2024, we were in compliance with both financial covenants (which are identical in all three of our revolving credit facilities).
−Removed: The revolving credit facilities also contain an acquisition holiday.
−Removed: In the event we make an acquisition for which the purchase price is greater than $75 million, we can elect to increase the maximum debt-to-EBITDA ratio to 3.75 for a period of four consecutive fiscal quarters, commencing with the fiscal quarter in which a qualifying acquisition occurs.
−Removed: No more than two acquisition "holidays" can occur during the term of the facilities, and at least two fiscal quarters must separate qualifying acquisitions.
−Removed: Borrowings under the credit facilities bear floating interest at either the Base Rate or Term Secured Overnight Financing Rate (SOFR), or, in the case of the Canadian facilities, Canadian Overnight Repo Rate Average (CORRA) plus, in each, a margin based on the Leverage Ratio (as defined in the Credit Agreements).
+Added: On July 19, 2024, we entered into a Credit Agreement (the Credit Agreement) with Bank of America, N.A., as administrative agent, and other lenders.
+Added: The Credit Agreement provides for an unsecured senior credit facility in an aggregate principal amount of up to $700.0 million, in which commitments were made through a $450.0 million, five-year revolving credit facility and a committed $250.0 million delayed draw term loan facility.
+Added: Borrowings under the revolving credit facility can be in Canadian dollars (CAD) limited to $25.0 million USD.
+Added: The term loan facility may be utilized in up to two draw downs, which are available to be made within one year after the closing date.
+Added: The senior credit facility has a term of five years with a maturity date of July 19, 2029.
+Added: The Credit Agreement replaces the previous revolving credit facility with Wells Fargo Bank, N.A., as administrative agent, and other lenders, with maximum borrowings up to $385.0 million, and the two Canadian credit facilities with Bank of Montreal totaling $25.0 million USD.
+Added: As a result of the execution of the Credit Agreement, in fiscal 2025, we recognized a loss, within interest expense of $0.5 million for the write-off of unamortized financing fees related to the previous revolving credit facility.
+Added: Additionally, we capitalized $3.0 million of lender fees and $0.8 million of third-party fees incurred in connection with the Credit Agreement, which were recorded as other non-current assets and will be amortized over the term of the Credit Agreement as interest expense.
+Added: The Credit Agreement contains two maintenance financial covenants that require our Consolidated Leverage Ratio (as defined in the Credit Agreement) to be less than 3.50 and our Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) to exceed 3.00.
+Added: At March 1, 2025, we were in compliance with all covenants as defined under the terms of the Credit Agreement.
+Added: The Credit Agreement also contains an acquisition "holiday." In the event we make an acquisition for which the purchase price is greater than $75 million, we can elect to increase the maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) to 4.00 for a period of four consecutive fiscal quarters, commencing with the fiscal quarter in which a qualifying acquisition occurs.
+Added: No more than two acquisition holidays can occur during the term of the Credit Agreement, and at least two fiscal quarters must separate qualifying acquisitions.
+Added: Borrowings under the Credit Agreement bear floating interest at either the Base Rate or Term Secured Overnight Financing Rate (SOFR), or, for CAD borrowings, Canadian Overnight Repo Rate Average (CORRA) plus a margin based on the Consolidated Leverage Ratio (as defined in the Credit Agreement).
For Base Rate borrowings, the margin ranges from 0.25% to 0.75%.
−Removed: For Term SOFR and CORRA borrowings, the margin ranges from 1.125% to 1.75%, with an incremental Term SOFR and CORRA adjustment of 0.10% and 0.29547%, respectively.
−Removed: facility also contains an "accordion" provision.
−Removed: Under this provision, we can request that the facility be increased by as much $200.0 million.
−Removed: Any Lender may elect or decline to participate in the requested increase at the Lender’s sole discretion.
−Removed: Additionally, at March 2, 2024, we had a total of $15.0 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal year 2025 and reduce borrowing capacity under the U.S.
−Removed: revolving credit facility.
−Removed: As of March 2, 2024, the amount available for revolving borrowings under the U.S credit facility was $320.0 million.
+Added: For Term SOFR and CORRA borrowings, the margin ranges from 1.25% to 1.75%, with an incremental Term SOFR and CORRA adjustment of 0.10% and 0.29547%.
+Added: The Credit Agreement also contains an "accordion" provision.
+Added: Under this provision, we can request that the senior credit facility be increased unlimited additional amounts.
+Added: Any lender may elect or decline to participate in the requested increase at their sole discretion.
+Added: On November 4, 2024, as part of the acquisition of UW Solutions, and for working capital and general corporate purposes, we executed a drawdown against the delayed draw term loan facility for $250.0 million.
+Added: Outstanding borrowings under the term loan facility were $215.0 million as of March 1, 2025.
+Added: Outstanding borrowings under the revolving credit facility were $70.0 million as of March 1, 2025.
+Added: Outstanding borrowings under the previous revolving credit facility were $50.0 million as of March 2, 2024.
+Added: We had no outstanding borrowings under the Canadian facilities as of March 2, 2024.
+Added: At March 2, 2024, debt included $12.0 million of industrial revenue bonds.
+Added: We had no outstanding industrial revenue bonds as of March 1, 2025 as in the fourth quarter of fiscal 2025 we paid the remaining balance of these bonds, including principal and interest outstanding, without penalty.
+Added: At March 1, 2025, we had a total of $15.0 million of ongoing letters of credit that expire in fiscal year 2026 and reduce borrowing capacity under the revolving credit facility.
+Added: As of March 1, 2025, the amount available for revolving borrowings was $365.0 million.
We acquire the use of certain assets through operating leases, such as property, manufacturing equipment, vehicles and other equipment.
Future payments for such leases, excluding leases with initial terms of one year or less, were $76.9 million at March 1, 2025, with $17.7 million payable within the next 12 months.
−Removed: See Note 8 - Leases of the Notes to Consolidated Financial Statements included in Item 8 of this Form 10-K for further detail surrounding our lease obligations and the timing of expected future payments.
+Added: See Note 8 for further detail surrounding our lease obligations and the timing of expected future payments.
As of March 1, 2025, we had $10.2 million of open purchase obligations, of which payments totaling $7.3 million are expected to become due within the next 12 months.
6 unchanged sentences
These bonds have expiration dates that align with completion of the purchase order or contract.
−Removed: We have not been required to make any payments under these bonds with respect to our existing businesses.
+Added: We have never been required to make payments under surety or performance bonds with respect to our existing businesses.
Due to our ability to generate strong cash from operations and our borrowing capability under our committed revolving credit facilities, we believe that our sources of liquidity will be adequate to meet our short-term and long-term liquidity and capital expenditure needs.
4 unchanged sentences
Recently Issued Accounting Pronouncements
−Removed: See Note 1 of the Notes to Consolidated Financial Statements within Item 8 of this Form 10-K for information pertaining to recently issued accounting pronouncements, incorporated herein by reference.
+Added: See Note 1 for information pertaining to recently issued accounting pronouncements, incorporated herein by reference.
Critical Accounting Policies and Estimates
6 unchanged sentences
We generate revenue from the design, engineering and fabrication of architectural glass, curtainwall, window, storefront and entrance systems, and from installing those products on non-residential buildings.
−Removed: We also manufacture value-added glass and acrylic products.
+Added: We also manufacture value-added glass, acrylic, and industrial flooring products.
Due to the diverse nature of our operations and various types of contracts with customers, we have businesses that recognize revenue over time and businesses that recognize revenue at a point in time.
We believe the most significant areas of estimation and judgment are related to our businesses that recognize revenue using the over-time input method.
−Removed: Approximately 34% of our total revenue in fiscal 2024 was from longer-term, fixed-price contracts.
−Removed: The contracts for these businesses have a single, bundled performance obligation, as these businesses generally provide interrelated products and services and integrate these products and services into a combined output specified by the customer.
+Added: Approximately 36% of our total revenue in fiscal 2025 was from longer-term, fixed-price contracts, of which the longer term and most significant contracts are in our Architectural Services Segment.
+Added: The contracts for this business have a single, bundled performance obligation, as this business generally provides interrelated products and services and integrate these products and services into a combined output specified by the customer.
The customer obtains control of this combined output, generally integrated window systems or installed window and curtainwall systems, over time.
12 unchanged sentences
The effect of a contract modification on the transaction price and our measure of progress is recognized as an adjustment to revenue, generally on a cumulative catch-up basis.
−Removed: Due to the significant judgments utilized in our revenue recognition on long-term contracts, if subsequent actual results and/or updated assumptions, estimates, or projections were to change from those utilized at March 2, 2024, it could result in a material impact to our results of operations in the future.
+Added: Due to the significant judgments utilized in our revenue recognition on long-term contracts, if subsequent actual results and/or updated assumptions, estimates, or projections were to change from those utilized at March 1, 2025, our results of operations in the future could be materially impacted.
Impairment of goodwill and indefinite-lived intangible assets
2 unchanged sentences
A reporting unit is an operating segment, or a component of an operating segment, for which discrete financial information is available and is reviewed by segment management on a regular basis.
−Removed: The reporting units for our fiscal 2024 annual impairment test align with our reporting segments, with the exception of our Architectural Framing Systems Segment.
−Removed: This segment contains two reporting units, Window and Wall Systems and Storefront and Finishing Solutions, which represent $53.6 million and $35.7 million, of the goodwill balance at March 2, 2024, respectively.
−Removed: During the fourth quarter of fiscal 2024, as a result of an announced restructuring plan, we reassessed our reporting units, which led to a combination of the Window and Wall Systems and Storefront and Finishing Solutions reporting units into one Architectural Framing Systems reporting unit.
−Removed: 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.
−Removed: In addition, no qualitative indicators of impairment were identified during the fourth quarter of fiscal 2024.
−Removed: Following this change, we have four reporting units, which align with our reporting segments.
+Added: The reporting units for our fiscal
+Added: 2025 annual impairment test align with our Architectural Metals, Architectural Services, and Architectural Glass reporting segments.
+Added: The Performance Surfaces reporting segment consists of the Tru Vue and UW Solutions reporting units.
For our fiscal 2025 annual impairment test, we elected to bypass the qualitative assessment process and proceed directly to comparing the fair value of each of our reporting units to carrying value, including goodwill.
25 unchanged sentences
The assessment of fair value involves significant judgment and projections about future performance.
−Removed: In the fair value analysis, we assumed discount rates ranging from 13.5% to 14.0%, a royalty rate of 1.5%, and a long-term growth rate of 3.0%.
−Removed: Based on our annual analysis, the fair value of each of our trade names and trademarks exceeded the carrying amount.
−Removed: The discounted cash flow projections used in these analyses are dependent upon achieving forecasted levels of revenue.
−Removed: If revenue was to fall below forecasted levels, or if market conditions were to decline in a material or sustained manner, impairment could be indicated for our indefinite-lived intangible assets and we could incur non-cash impairment expense that would negatively impact our net earnings.
−Removed: For example, keeping all other assumptions constant, a 100 basis point increase in the weighted average cost of capital would cause the estimated fair values of our indefinite-lived intangibles to fall below carrying value, and would indicate impairment of around $0.4 million.
−Removed: We continue to conclude that the useful lives of our remaining indefinite-lived intangible assets is appropriate.
+Added: In the fair value analysis, we assumed a discount rate of 12.5%, a royalty rate of 1.5%, and long-term growth rates ranging from 0.0% to 1.5%.
+Added: Based on our annual analysis, the carrying amount for certain of our trade names exceeded the fair value, indicating impairment of $7.6 million.
+Added: We continue to conclude that the useful lives of our remaining indefinite-lived intangible assets are appropriate.
If future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner, impairment could be indicated on these indefinite-lived intangible assets.
2 unchanged sentences
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.
−Removed: We also are subject to project management and installation-related contingencies as a result of our fixed-price material supply and installation service contracts, primarily in our Architectural Services Segment and certain of our Architectural Framing Systems businesses.
+Added: We also are subject to project management and installation-related contingencies as a result of our fixed-price material supply and installation service contracts, primarily in our Architectural Services Segment and certain of our Architectural Metals businesses.
The time period from when a claim is asserted to when it is resolved, either by negotiation, settlement or litigation, can be several years.
18 unchanged sentences
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.