What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-04-24 compared with 2024-04-26 · 394 added, 294 removed, 881 unchanged (44% of the section changed)

10 unchanged sentences

The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of March 1, 2025, using criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013) .

The Company's management believes that, as of March 2, 2024, the Company's internal control over financial reporting was effective based on those criteria.

On November 4, 2024, we completed our acquisition of UW Solutions.

In accordance with Securities Exchange Commission guidance permitting a company to exclude an acquired business from management’s assessment of the effectiveness of internal control over financial reporting for the year in which the acquisition is completed, we have excluded UW Solutions from our assessment of the effectiveness of internal control over financial reporting as of March 1, 2025.

The assets and net sales revenue of UW Solutions that were excluded from our assessment constituted approximately 21.5% and 2.4%, respectively, of the related consolidated financial statement amounts as of and for the year ended March 1, 2025.

The scope of management’s assessment of the effectiveness of the design and operation of our disclosure controls and procedures as March 1, 2025 includes all of our consolidated operations except for those disclosure controls and procedures of UW Solutions.

See Note 17 for additional information regarding the UW Solutions acquisition.

Based on our assessment, the Company's management believes that, as of March 1, 2025, the Company's internal control over financial reporting was effective based on those criteria.

Following this report are reports from the Company's independent registered public accounting firm, Deloitte & Touche LLP, on the Company's consolidated financial statements and on the effectiveness of the Company's internal control over financial reporting as of March 1, 2025.

4 unchanged sentences

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

and subsidiaries (the "Company") as of March 2, 2024 and February 25, 2023, and the related consolidated results of operations, statements of comprehensive earnings, cash flows, and shareholders' equity, for each of the three years in the period ended March 2, 2024, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 2, 2024 and February 25, 2023, and the results of its operations and its cash flows for each of the three years in the period ended March 2, 2024, in conformity with accounting principles generally accepted in the United States of America.

and subsidiaries (the "Company") as of March 1, 2025 and March 2, 2024, and the related consolidated results of operations, statements of comprehensive earnings, cash flows, and shareholders' equity, for each of the three years in the period ended March 1, 2025, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 1, 2025 and March 2, 2024, and the results of its operations and its cash flows for each of the three years in the period ended March 1, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 1, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated April 24, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting.

15 unchanged sentences

The Architectural Services Segment, which provides building glass and curtainwall installation services and operates under long-term, fixed-price contracts, accounted for approximately $419.9 million, or 31 percent of total net sales for the year ended March 1, 2025.

The contracts for this business typically have a single, bundled performance obligation, as the business generally provides interrelated services and integrates these services into a combined output specified by the customer.

The customer obtains control of this combined output, generally installed window and curtainwall systems, over time.

The contracts for this business typically have a single, bundled performance obligation, as the business generally provides interrelated products and services and integrates 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.

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

10 unchanged sentences

◦ Tested the accuracy and completeness of the costs incurred to date for the performance obligations.

• We tested the mathematical accuracy of management’s calculation of long-term contract revenue for the performance obligation.

◦ Tested the mathematical accuracy of management’s calculation of long-term contract revenue for the performance obligation.

• Evaluated the estimates of total cost and profit for the performance obligations by:

13 unchanged sentences

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended March 1, 2025, of the Company and our report dated April 24, 2025, expressed an unqualified opinion on those financial statements.

As described in Management's Annual Report on Internal Control over Financial Reporting, management excluded from its assessment the internal control over financial reporting at UW Solutions, which was acquired on November 4, 2024, and whose financial statements constitute approximately 21.5% and 2.4% of assets and net sales revenue, respectively, of the consolidated financial statement amounts as of and for the year ended March 1, 2025.

Accordingly, our audit did not include the internal control over financial reporting at UW Solutions.

Basis for Opinion

18 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data) March 2, 2024 February 25, 2023

(In thousands, except per share data) March 1, 2025 March 2, 2024

Current assets

Cash and cash equivalents $ 41,448 $ 37,216

Restricted cash — 1,549

Receivables, net 185,590 173,557

36 unchanged sentences

CONSOLIDATED RESULTS OF OPERATIONS

March 2, 2024 February 25, 2023 February 26, 2022

March 1, 2025 March 2, 2024 February 25, 2023

(In thousands, except per share data) (52 weeks) (53 weeks) (52 weeks)

3 unchanged sentences

Selling, general and administrative expenses 241,783 233,295 209,485

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

Operating income 118,110 133,833 125,788

13 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

March 2, 2024 February 25, 2023 February 26, 2022

(In thousands) (53 weeks)

(52 weeks) (52 weeks)

March 1, 2025 March 2, 2024 February 25, 2023

(In thousands) (52 weeks) (53 weeks) (52 weeks)

Net earnings $ 85,052 $ 99,613 $ 104,107

Other comprehensive earnings (loss):

Other comprehensive (loss) earnings:

Unrealized gain (loss) on marketable securities, net of $ 49 , $ 59 and $( 131 ) of tax expense (benefit), respectively

184 222 ( 492 )

Unrealized (loss) gain on derivative instruments, net of $( 22 ), $( 672 ) and $ 633 of tax (benefit) expense, respectively

Unrealized loss on derivative instruments, net of $( 135 ), $( 22 ) and $( 672 ) of tax benefit, respectively

( 442 ) ( 72 ) ( 2,205 )

1 unchanged sentence

Foreign currency translation adjustments ( 5,582 ) 1,018 ( 3,345 )

Other comprehensive earnings (loss) 2,025 ( 5,316 ) 1,787

Other comprehensive (loss) earnings ( 5,761 ) 2,025 ( 5,316 )

Total comprehensive earnings $ 79,291 $ 101,638 $ 98,791

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

March 2, 2024 February 25, 2023 February 26, 2022

March 1, 2025 March 2, 2024 February 25, 2023

(In thousands)

6 unchanged sentences

Deferred income taxes 3,836 ( 9,748 ) ( 7,185 )

Asset impairment charges 6,195 — 21,497

Asset impairment on property, plant and equipment — 6,195 —

Loss (gain) on disposal of property, plant and equipment 408 826 ( 3,815 )

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

Impairment on intangible assets 7,634 — —

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

10 unchanged sentences

Operating lease liability ( 12,703 ) ( 12,632 ) ( 12,149 )

Refundable and accrued income taxes 6,523 ( 6,976 ) 11,017

Accrued income taxes ( 5,120 ) 6,523 ( 6,976 )

Other current assets and liabilities 8,763 1,143 11,813

5 unchanged sentences

Sales/maturities of marketable securities 3,570 2,165 9,712

Net cash (used) provided by investing activities ( 43,675 ) ( 27,710 ) 9,283

Acquisition of business, net of cash acquired ( 232,169 ) — —

Net cash used in investing activities ( 265,893 ) ( 43,675 ) ( 27,710 )

Financing Activities

Proceeds from revolving credit facilities 77,201 196,964 485,879

Repayment on debt — ( 151,000 ) ( 2,000 )

Repayments on revolving credit facilities ( 304,817 ) ( 327,865 ) —

Proceeds from exercise of stock options — — 4,115

Repayment on revolving credit facilities ( 57,201 ) ( 304,817 ) ( 327,865 )

Proceeds from term loans 250,000 — —

Repayment of debt ( 47,000 ) — ( 151,000 )

Payments of debt issuance costs ( 3,798 ) — —

Repurchase of common stock ( 45,364 ) ( 11,821 ) ( 74,312 )

1 unchanged sentence

Other, net ( 6,052 ) ( 3,800 ) ( 4,055 )

Net cash used by financing activities ( 144,607 ) ( 91,023 ) ( 120,572 )

Net cash provided by (used in) financing activities 146,049 ( 144,607 ) ( 91,023 )

Effect of exchange rates on cash ( 1,086 ) ( 129 ) ( 73 )

Increase (decrease) in cash, cash equivalents and restricted cash 15,743 ( 16,110 ) ( 9,694 )

Cash, cash equivalents and restricted cash at beginning of year 21,473 37,583 47,277

Cash and cash equivalents at end of year $ 37,216 $ 21,473 $ 37,583

Increase in cash, cash equivalents and restricted cash 4,232 15,743 ( 16,110 )

Cash, cash equivalents and restricted cash at beginning of period 37,216 21,473 37,583

Cash and cash equivalents at end of period $ 41,448 $ 37,216 $ 21,473

Non-cash Activity

16 unchanged sentences

Net earnings — — — 99,613 — 99,613

Other comprehensive loss, net of tax — — — — ( 5,316 ) ( 5,316 )

Other comprehensive income, net of tax — — — — 2,025 2,025

Issuance of stock, net of cancellations 171 58 ( 150 ) ( 40 ) — ( 132 )

5 unchanged sentences

— — — ( 21,133 ) — ( 21,133 )

Balance at February 25, 2023 22,224 $ 7,408 $ 146,816 $ 273,740 $ ( 31,556 ) $ 396,408

Balance at March 2, 2024 22,089 $ 7,363 $ 152,818 $ 340,375 $ ( 29,531 ) $ 471,025

Net earnings — — — 85,052 — 85,052

2 unchanged sentences

Share-based compensation — — 10,725 — — 10,725

Exercise of stock options 25 8 ( 840 ) — — ( 832 )

Share repurchases ( 787 ) ( 263 ) ( 6,415 ) ( 38,686 ) — ( 45,364 )

10 unchanged sentences

We consolidate variable interest entities related to our New Markets Tax Credit transactions as it has been determined that the Company is the primary beneficiary of those entities' operations (refer to Note 10 for more information).

Our fiscal year ends on the Saturday closest to the last day of February, or as otherwise determined by our Board of Directors.

Fiscal 2024 consisted of 53 weeks, while fiscal 2023 and fiscal 2022 each consisted of 52 weeks.

Our fiscal year ends on the Saturday closest to the last day of February.

Fiscal 2025 and fiscal 2023 each consisted of 52 weeks, while fiscal 2024 consisted of 53 weeks.

Accounting estimates

2 unchanged sentences

Actual results could differ significantly from those estimates.

Reclassifications

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

These reclassifications had no impact on reported cash flows or total assets and liabilities.

Cash equivalents

6 unchanged sentences

During fiscal 2025, 2024, and 2023, the Company did not recognize any credit losses related to its available-for-sale securities.

Further, as of March 2, 2024 and February 25, 2023, the Company did not record an allowance for credit losses related to its available-for-sale securities.

Further, as of March 1, 2025 and March 2, 2024, 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.

3 unchanged sentences

Significant improvements and renewals that extend the useful life of the asset are capitalized.

Repairs and maintenance are charged to expense as incurred.

Repairs and maintenance items are generally charged to expense when incurred.

When an asset is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in selling, general and administrative expenses.

8 unchanged sentences

As a result of restructuring plans announced during the fourth quarter of fiscal 2024, asset impairments on property, plant and equipment and leases in the amount of $ 6.2 million were recorded for the year ended March 2, 2024.

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

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

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 related definite-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.

Goodwill and intangible assets

3 unchanged sentences

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

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 2024 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 $ 53.6 million and $ 35.7 million, of the goodwill balance at March 2, 2024, respectively.

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.

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

In addition, no qualitative indicators of impairment were identified during the fourth quarter of fiscal 2024.

Following this change, we have four reporting units, which align with our reporting segments.

During the third quarter of fiscal 2025, we acquired UW Interco, LLC (UW Solutions).

As a result, we reassessed our reporting units.

The reporting units for our fiscal 2025 annual impairment test align with our reporting segments for Architectural Metals, Architectural Services, and Architectural Glass.

The Performance Surfaces reporting segment consists of the Tru Vue and UW Solutions reporting units.

No qualitative indicators of impairment were identified during the fourth quarter of fiscal 2025.

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

15 unchanged sentences

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

Based on our annual impairment analysis and changes to our branding strategies in the fourth quarter of fiscal 2025, the carrying amount for certain of our trade names exceeded the fair value.

As a result, we recorded a non-cash impairment charge of $ 7.6 million in the fourth quarter of fiscal 2025.

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

27 unchanged sentences

We are exposed to, among other risks, the impact of changes in aluminum prices, foreign currency exchange rates, and interest rates in the normal course of business.

In order to manage the exposure and volatility arising from these risks, we utilize derivative financial instruments to offset a portion of these risks.

We use derivative financial instruments only to hedge identified business risks, and do not hold or issue derivative financial instruments for trading purposes and are not a party to leveraged derivatives.

In order to manage the exposure and volatility arising from these risks, we may utilize derivative financial instruments to offset a portion of these risks.

We use derivative financial instruments to hedge identified business risks, and do not hold or issue derivative financial instruments for trading purposes and are not a party to leveraged derivatives.

All derivative instruments within the scope of ASC 815, Derivatives and Hedging , are recorded as either assets or liabilities at fair value on the consolidated balance sheets.

All hedging instruments that qualify for hedge accounting are designated and effective as hedges with changes recognized in other comprehensive earnings (loss).

Instruments that do not qualify for hedge accounting are marked to market with changes recognized directly in earnings.

Instruments that do not qualify for hedge accounting are marked to market with changes recognized directly in net earnings.

Cash flows from derivative instruments are classified in the statements of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships.

1 unchanged sentence

Revenue recognition

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

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

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

We also manufacture value-added glass and acrylic products.

Due to the diverse nature of our operations and various types of contracts with customers, we have businesses that recognize revenue at a point in time at shipment, businesses that recognize revenue following an over-time input method and businesses that recognize revenue following an over-time output method.

Approximately 42 % of our fiscal 2024 revenue was recognized at the time products were shipped from our manufacturing facilities, which is when control is transferred to our customer, consistent with past practices.

We also coat and fabricate value-added glass, aluminum, acrylic and medium-density fiberboard products.

Due to the diverse nature of our operations and various types of arrangements with customers, we have businesses that recognize revenue at shipment, businesses that recognize revenue following an over-time input method and businesses that recognize revenue following an over-time output method.

Approximately 42 % of our fiscal 2025 revenue was recognized at the time products were shipped from our manufacturing facilities, which is when control is transferred to our customer.

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

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

Approximately 34 % of our fiscal 2024 revenue was from long-term, fixed-price contracts, following an over-time input method.

Approximately 36 % of our fiscal 2025 revenue was from fixed-price contracts, following an over-time input method.

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.

13 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.

The net cumulative catch-up adjustments on our longer-term contracts for changes in estimates had the following effect on the respective periods shown:

(in thousands, except earnings per share data) Year Ended

March 1, 2025 March 2, 2024 February 25, 2023

(52 weeks) (53 weeks) (52 weeks)

Operating income

$ 16,307 $ 5,760 $ 13,422

Earnings per share:

$ 0.57 $ 0.20 $ 0.46

$ 0.56 $ 0.20 $ 0.45

Typically, under these fixed-price contracts, we bill our customers following an agreed-upon schedule based on work performed.

28 unchanged sentences

These costs are expensed as incurred.

Advertising costs are expensed as incurred within selling, general and administrative expenses , and were $ 1.3 million in fiscal 2024 and $ 1.2 million in fiscal 2023 and 2022.

Advertising costs are expensed as incurred within selling, general and administrative expenses , and were $ 1.0 million in fiscal 2025, $ 1.3 million in fiscal 2024, and $ 1.2 million in fiscal 2023.

The Company recognizes deferred tax assets and liabilities based upon the future tax consequences of temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

1 unchanged sentence

Subsequent events

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.

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing and determined that an arbitration award (refer to Note 10) is a subsequent event that required recognition and disclosure in our fiscal 2025 consolidated financial statements and that the announcement of the extension of our restructuring program, Project Fortify Phase 2, (refer to Note 18) required disclosure in the consolidated financial statements.

There were no other events that required recognition or disclosure.

Adoption of new accounting standards

In the fourth quarter of fiscal 2025, we adopted the guidance in ASU 2023-07, Improvements to Reportable Segment Disclosures , which expands the required disclosure for reportable segments.

This guidance requires entities to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all segment disclosures which are currently required annually.

This ASU additionally requires entities to disclose the title and position of the individual or the name of the group or committee identified as its chief operating decision-maker.

At the beginning of fiscal 2024, we adopted the guidance in ASU 2022-04, Liabilities – Supplier Finance Programs, Disclosure of Supplier Finance Program Obligations.

The guidance requires that entities that use supplier finance programs disclose information about the nature and potential magnitude of the programs, activity during the period, and changes from period to period.

Beginning in the first quarter, we implemented a supplier financing arrangement with U.S.

Bank that enables our suppliers, at their sole discretion, to sell the Company's receivables (i.e., our payment obligations to the suppliers) to U.S.

Bank on a non-recourse basis in order to be paid earlier than our payment terms provide.

Our suppliers’ voluntary inclusion of invoices in the supplier financing arrangement has no bearing on our payment terms, the amounts we pay, or our liquidity.

We have no economic interest in a supplier’s decision to participate in the supplier financing program, and we do not provide any guarantees in connection with it.

These balances are reflected in accounts payable in the consolidated balance sheets and are reflected in net cash provided by operating activities in our consolidated statements of cash flows when settled.

The following table summarizes the obligation activity and outstanding as of March 2, 2024 that we have confirmed as valid to the administrators of our program with U.S.

(In thousands) 2024

Balance at beginning of period

Obligations added to the program

Obligations settled

Balance at end of period

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

Simplifying the Accounting for Income Taxes .

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

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

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

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

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

The guidance requires that entities that use supplier finance programs disclose

information about the nature and potential magnitude of the programs, activity during the period, and changes from period to period.

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

Accounting standards not yet adopted

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures , which expands the required disclosure for reportable segments.

This ASU additionally requires entities to disclose the title and position of the individual or the name of the group or committee identified as its chief operating decision-maker.

Such guidance, which is required to be applied retrospectively, is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, although early adoption is permitted.

While the adoption of this ASU will not have an impact on our financial position and/or results of operations, we are currently evaluating the impact to our segment disclosures.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , intended to enhance the transparency and decision-usefulness of income tax disclosures.

3 unchanged sentences

While the adoption of this ASU will not have an impact on our financial position and/or results of operations, we are currently evaluating the impact on our income tax disclosures, including the processes and controls around the collection of this information.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses .

This guidance requires entities to disclose more detailed information about the types of expenses, including purchases of inventory, employee compensation, depreciation, amortization, and depletion in commonly presented expense captions such as cost of sales and selling, general and administrative expenses.

Such guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, although early adoption is permitted.

This guidance should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements.

While the adoption of this ASU will not have an impact on our financial position and/or results of operations, we are currently evaluating the impact this ASU may have on our consolidated financial statement disclosures, including the processes and controls around the collection of this information.

Revenue, Receivables and Contract Assets and Liabilities

The following table disaggregates total revenue by timing of recognition (see Note 16 for disclosure of revenue by segment):

March 2, 2024 February 25, 2023 February 26, 2022

(In thousands) (53 weeks) (52 weeks) (52 weeks)

(In thousands) 2025 2024 2023

Recognized at shipment $ 571,140 $ 596,270 $ 649,792

8 unchanged sentences

An account is written off when it is determined that the asset is no longer collectible.

Retainage on construction contracts represents amounts withheld by our customers on long-term projects until the project reaches a level of completion where amounts are released.

(In thousands) 2024 2023

(In thousands) March 1, 2025 March 2, 2024

Trade accounts $ 117,533 $ 115,061

6 unchanged sentences

Beginning balance $ 3,383 $ 1,796

Additions charged to costs and expenses 2,473 394

(Credits) charges against costs and expenses ( 1,376 ) 2,473

Deductions from allowance, net of recoveries ( 122 ) ( 901 )

Other deductions 15 ( 44 )

Allowance for credit losses from acquisitions 853 —

Other adjustments ( 71 ) 15

Ending balance $ 2,667 $ 3,383

5 unchanged sentences

In certain of our businesses that recognize revenue over time, progress billings follow an agreed-upon schedule of values.

(In thousands) March 2, 2024 February 25, 2023

(In thousands) March 1, 2025 March 2, 2024

Contract assets $ 71,842 $ 49,502

2 unchanged sentences

Other contract-related disclosures

March 2, 2024 February 25, 2023

(In thousands) (53 weeks) (52 weeks)

(In thousands) 2025 2024

Revenue recognized related to contract liabilities from prior year-end $ 30,785 $ 25,342

3 unchanged sentences

The transaction price associated with unsatisfied performance obligations at March 1, 2025 are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands) March 2, 2024

(In thousands) 2025

Within one year

Within two years

More than one but less than two years

Beyond two years

1 unchanged sentence

Supplemental Balance Sheet Information

(In thousands) 2024 2023

(In thousands) March 1, 2025 March 2, 2024

Raw materials $ 36,804 $ 31,363

3 unchanged sentences

Other current liabilities

(In thousands) 2024 2023

Warranties and backcharges $ 18,874 $ 14,872

(In thousands) March 1, 2025 March 2, 2024

Arbitration award payable $ 20,182 $ —

Accrued self-insurance reserves 18,240 17,592

Warranties and backcharges

17,557 18,874

Deferred benefit from New Markets Tax Credit transactions 9,250 —

Income and other taxes 5,813 7,202

2 unchanged sentences

Other non-current liabilities

(In thousands) 2024 2023

(In thousands) March 1, 2025 March 2, 2024

Deferred warranty revenue $ 10,154 $ 10,274

Deferred benefit from New Markets Tax Credit transactions 9,250 9,250

Deferred compensation plan 5,590 5,938

1 unchanged sentence

Deferred tax liabilities 1,256 1,456

Deferred benefit from New Markets Tax Credit transactions — 9,250

Other 13,261 12,188

6 unchanged sentences

March 1, 2025 $ 10,148 $ 33 $ 222 $ 9,959

February 25, 2023 10,647 — 702 9,945

March 2, 2024 11,327 15 437 10,905

Prism insures a portion of our general liability, workers' compensation and automobile liability risks using reinsurance agreements to meet statutory requirements.

9 unchanged sentences

Derivative instruments

We use interest rate swaps, currency put options, and forward purchase contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations.

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.

We may use interest rate swaps, currency put options, forward purchase contracts, or other instruments to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations.

The information that follows explains the various types of derivatives and financial instruments used, 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 with a notional value of $ 30 million with an expiration date of February 5, 2026, to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility.

In fiscal 2025, we entered into an interest rate swap with a notional value of $ 75 million with an expiration date of January 5, 2027, to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility.

We periodically enter into forward purchase contracts to manage the risk associated with fluctuations in foreign currency rates (primarily related to the Canadian dollar and Euro) and aluminum prices, generally with an original maturity date of less than one year.

As of March 2, 2024, we held foreign exchange option contracts and aluminum purchase contracts with U.S.

dollar notional values of $ 1.4 million and $ 9.3 million, respectively.

As of March 1, 2025, we held foreign exchange option contracts with U.S.

dollar notional values of $ 1.5 million.

The mark to market adjustments on these derivative instruments are recorded within our consolidated balance sheets within other current assets and other current liabilities.

12 unchanged sentences

Money market funds $ 20,758 $ — $ 20,758

Municipal and corporate bonds — 10,905 10,905

Municipal bonds — 9,959 9,959

Foreign currency option contract — 29 29

Interest rate swap contract — 1,292 1,292

Aluminum hedging contract — 529 529

February 25, 2023

Interest rate swap contracts — 539 539

Interest rate swap contracts — 540 540

March 2, 2024

Money market funds $ 26,529 $ — $ 26,529

Municipal and corporate bonds — 9,945 9,945

Interest rate swap contract — 1,817 1,817

Foreign currency option contract — 206 206

Aluminum hedging contract — 1,075 1,075

Money market funds and commercial paper

Municipal bonds — 10,905 10,905

Foreign currency option contracts — 3 3

Interest rate swap contracts — 1,292 1,292

Aluminum hedging contracts — 529 529

Money market funds

Fair value of money market funds was determined based on quoted prices for identical assets in active markets.

Commercial paper was measured at fair value using inputs based on quoted prices for similar securities in active markets.

These assets are included within cash and cash equivalents on our consolidated balance sheets.

Municipal and corporate bonds

Municipal and corporate bonds were measured at fair value based on market prices from recent trades of similar securities and are classified within our consolidated balance sheets as other current or other non-current assets based on maturity date.

Municipal bonds

Municipal bonds were measured at fair value based on market prices from recent trades of similar securities and are classified within our consolidated balance sheets as other current or other non-current assets based on maturity date.

Derivative instruments

The interest rate swap is measured at fair value using other observable market inputs, based off benchmark interest rates.

The interest rate swaps are measured at fair value using other observable market inputs, based off benchmark interest rates.

Forward foreign exchange and forward purchase aluminum contracts are measured at fair value using other observable market inputs, such as quotations on forward foreign exchange points, foreign currency exchange rates and forward purchase aluminum prices.

Derivative positions are primarily valued using standard calculations and models that use as their basis readily observable market parameters.

Derivative positions are primarily valued using standard calculations and models that use as their basis readily

observable market parameters.

Industry standard data providers are our primary source for forward and spot rate information for interest and currency rates and aluminum prices.

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Property, Plant and Equipment

(In thousands) 2024 2023

(In thousands) March 1, 2025 March 2, 2024

Land $ 3,460 $ 3,637

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Goodwill and Other Intangible Assets

Refer to Note 1 to the consolidated financial statements for a description of the Accounting Policy related to Goodwill.

Refer to Note 1 for a description of the Accounting Policy related to Goodwill.

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

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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.

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

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

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

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total

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

Reallocation among reporting units (1)

( 2,048 ) — 2,048 — —

Foreign currency translation 49 7 100 — 156

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

Balance at March 2, 2024 90,186 3,038 25,401 10,557 129,182

Goodwill acquired — — — 107,826 107,826

Foreign currency translation ( 852 ) ( 117 ) ( 264 ) — ( 1,233 )

Balance at March 1, 2025 $ 89,334 $ 2,921 $ 25,137 $ 118,383 $ 235,775

(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.

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 as described in Note 1.

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.

Based on our annual analysis and changes to our strategic branding in the 4th quarter of fiscal 2025, we recorded impairment expense of $ 7.6 million related to trademarks within Selling, general and administrative expenses (SG&A) in the Architectural Metals Segment.

Definite-lived intangible assets

Long-lived assets or asset groups, including intangible assets subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable, as described in Note 1.

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 certain related 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.

In fiscal 2025, $ 79.7 million of intangible assets were acquired as part of the UW Interco, LLC (UW Solutions) acquisition.

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

(In thousands) Gross Carrying Amount Accumulated

Amortization Foreign

Amortization Impairment Expense Foreign

Translation Net

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Total intangible assets $ 228,099 $ ( 87,961 ) $ ( 7,634 ) $ ( 4,087 ) $ 128,417

February 25, 2023

March 2, 2024

Definite-lived intangible assets:

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Estimated amortization expense $ 5,236 $ 5,236 $ 5,184 $ 4,968 $ 4,928

As of March 2, 2024, we had a committed revolving credit facility with Wells Fargo Bank, N.A.

as administrative agent, and other lenders (U.S.

credit facility) with maximum borrowings of up to $ 385 million and a maturity of August 5, 2027.

Outstanding borrowings under the revolving credit facility were $ 50.0 million and $ 156.0 million as of March 2, 2024 and February 25, 2023, respectively.

We also maintain two Canadian committed, revolving credit facilities with the Bank of Montreal totaling $ 25.0 million USD (Canadian facilities).

The Canadian facilities expire annually in February, but can be renewed each year solely at our discretion until August 5, 2027.

Therefore, we classify all outstanding amounts under these facilities as long-term debt within our consolidated balance sheets.

At March 2, 2024, we had no outstanding borrowings under these Canadian facilities.

At February 25, 2023, outstanding borrowings under these Canadian facilities were $ 1.8 million.

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 .

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

At March 2, 2024, we were in compliance with both financial covenants.

The revolving credit facilities also contain 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 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.

No more than two acquisition "holidays" can occur during the term of the facilities, and at least two fiscal quarters must separate qualifying acquisitions.

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).

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.

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.

Borrowings under the revolving credit facility can be in Canadian dollars (CAD) limited to $ 25.0 million USD.

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.

The senior credit facility has a term of five years with a maturity date of July 19, 2029.

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.

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.

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 facility as interest expense.

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 .

At March 1, 2025, we were in compliance with all covenants as defined under the terms of the Credit Agreement.

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.

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.

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 %.

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 %.

credit facility also contains an "accordion" provision.

Under this provision, we can request that the facility be increased by as much as $ 200.0 million.

Any Lender may elect or decline to participate in the requested increase at the Lender’s sole discretion.

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 revolving credit facility.

As of March 2, 2024, the amount available for revolving borrowings was $ 320.0 million and $ 25.0 million under the U.S.

credit facility and Canadian facilities, respectively.

At March 2, 2024, debt included $ 12.0 million of industrial revenue bonds that mature in fiscal years 2036 through 2043.

The fair value of our U.S.

credit facility, Canadian credit facilities and industrial revenue bonds approximated carrying value at March 2, 2024, and would be classified as Level 2 within the fair value hierarchy described in Note 4, due to the variable interest rates on these instruments.

The Credit Agreement also contains an "accordion" provision.

Under this provision, we can request that the senior credit facility be increased unlimited additional amounts.

Any lender may elect or decline to participate in the requested increase at their sole discretion.

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.

Outstanding borrowings under the term loan facility were $ 215.0 million as of March 1, 2025.

Outstanding borrowings under the current revolving credit facility were $ 70.0 million as of March 1, 2025.

Outstanding borrowings under the previous revolving credit facility were $ 50.0 million as of March 2, 2024.

We had no outstanding borrowings under the Canadian facilities as of March 2, 2024.

At March 2, 2024, debt included $ 12.0 million of industrial revenue bonds.

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.

At March 1, 2025, we had a total of $ 15.0 million of ongoing letters of credit related to the senior credit facility, amounts that remained on the industrial revenue bonds that were not extinguished when payment was made, construction contracts and insurance collateral that expire in fiscal year 2026 and reduce borrowing capacity under the revolving credit facility.

As of March 1, 2025, the amount available for revolving borrowings was $ 365.0 million.

The fair value of our senior credit facility approximated carrying values at March 1, 2025, and would be classified as Level 2 within the fair value hierarchy described in Note 4, due to the variable interest rates on these instruments.

Debt maturities and other selected information follows:

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Weighted average interest rate during the year 6.28 % 6.03 %

(In thousands) March 2, 2024 February 25, 2023 February 26, 2022

The weighted average interest rates on borrowings outstanding, inclusive of the impact of our interest rate swap as of March 1, 2025 and March 2, 2024 were 4.32 % and 4.90 %, respectively.

(In thousands) 2025 2024 2023

Interest on debt $ 8,803 $ 8,704 $ 8,558

Interest rate swap (income) expense ( 893 ) ( 418 ) 467

Interest rate swap gain ( 822 ) ( 893 ) ( 418 )

Other interest expense 815 178 294

Interest income ( 2,637 ) ( 1,320 ) ( 774 )

Interest expense, net

1 unchanged sentence

Interest payments were $ 8.1 million in fiscal 2025, $ 9.3 million in fiscal 2024 and $ 8.2 million in fiscal 2023.

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

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

We determine if an arrangement contains a lease at inception.

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

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

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

We have made an accounting policy election not to record leases with an original term of twelve months or less on our consolidated balance sheet;

such leases are expensed on a straight-line basis over the lease term.

As of March 2, 2024, we have one additional future operating lease commitment of $ 13.7 million that is signed but has not yet commenced, for one facility located in Texas within our Architectural Services Segment.

In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase.

4 unchanged sentences

The components of lease expense were as follows:

(In thousands) March 2, 2024 February 25, 2023

(In thousands) 2025 2024

Operating lease cost $ 14,587 $ 14,312

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Other supplemental information related to leases are as follows:

(In thousands) March 2, 2024 February 25, 2023

(In thousands) 2025 2024

Cash paid for amounts included in the measurement of operating lease liabilities $ 16,467 $ 14,656

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We maintain a plan that allows participants to defer compensation.

The deferred compensation liability was $ 5.9 million and $ 9.5 million at March 2, 2024 and February 25, 2023, respectively.

The deferred compensation liability was $ 5.6 million and $ 5.9 million at March 1, 2025 and March 2, 2024, respectively.

We have investments in corporate-owned life insurance policies (COLI) of $ 9.5 million and money market funds (classified as cash equivalents) of $ 0.3 million with the intention of utilizing them as long-term funding sources for this plan.

2 unchanged sentences

We contribute to a number of multi-employer union retirement plans, which provide retirement benefits to the majority of our union-represented employees;

none of the plans is considered significant.

none of the plans are considered significant.

However, the risks of participating in these multi-employer plans are different from single-employer plans in the following aspects:

2 unchanged sentences

• If we choose to stop participating in some of these plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability

Our participation in these plans is outlined in the following table.

The most recent Pension Protection Act zone status available in 2024 and 2023 relates to the plan years ending December 31, 2023 and December 31, 2022, respectively.

The zone status is based on information that we have received from each plan, certified by an actuary.

Under the Pension Protection Act, multiemployer pension plans are categorized into zones (green, yellow, red, and deep red) .

Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded.

The most recent Pension Protection Act zone status available for fiscals 2025 and 2024 relates to the plan years ending December 31, 2024 and December 31, 2023, respectively.

Our participation in these plans is outlined in the following table.

Pension Protection Act Zone Status Contributions

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Iron Workers Mid-America Pension Fund 366488227 Green Green 320 237 429 No No No 5/31/2017

Western Glaziers Retirement Fund (Oregon and Southwest Washington) 936074376 Green Green — 22 441 No No No 11/30/2017

Glazier's Union Local 27 Pension and Retirement Plan 366034076 Green Green 80 145 174 No No No 5/31/2017

Atlanta Ironworkers Local Union 387 Pension Plan 586051152 Green Green 131 109 125 No No No 1/31/2017

Western Glaziers Retirement Fund (Oregon and Southwest Washington) 936074376 Green Green 22 441 — No No No 11/30/2017

Other funds 603 801 493

7 unchanged sentences

5 and Iron Workers Employers Association Employees Pension Trust Fund 2025, 2024 and 2023

Western Glaziers Retirement Plan (Washington) 2022

Iron Workers Mid-America Pension Fund 2023 and 2022

Western Glaziers Retirement Fund (Oregon and Southwest Washington) 2025

Iron Workers Mid-America Pension Fund 2023

Atlanta Ironworkers Local Union 387 Pension Plan 2023

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Hourly Employees' Pension Plan, a defined-benefit pension plan that was frozen to new entrants in fiscal 2004, with no additional benefits accruing to plan participants after such time.

We also sponsor an unfunded SERP, a defined-benefit pension plan that was frozen to new entrants in fiscal 2009, with no additional benefits accruing to plan participants after such time.

We also sponsor an unfunded Supplemental Executive Retirement Plan (SERP), a defined-benefit pension plan that was frozen to new entrants in fiscal 2009, with no additional benefits accruing to plan participants after such time.

The following tables present reconciliations of the benefit obligation and the funded status of these plans.

The Tubelite plan uses a measurement date as of the calendar month-end closest to our fiscal year-end, while the SERP uses a measurement date aligned with our fiscal year-end.

(In thousands) 2024 2023

(In thousands) March 1, 2025 March 2, 2024

Change in projected benefit obligation

1 unchanged sentence

Interest cost 437 497

Actuarial gain ( 973 ) ( 1,484 )

Actuarial loss (gain)

Benefits paid ( 781 ) ( 887 )

8 unchanged sentences

The funded status was recognized in the consolidated balance sheets as follows:

(In thousands) 2024 2023

(In thousands) March 1, 2025 March 2, 2024

Other non-current assets $ 76 $ 111

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The discount rate was determined by matching the expected benefit payments to payments from the Principal Discount Yield Curve.

There are no known or anticipated changes in the discount rate assumption that will have a significant impact on pension expense in fiscal 2025.

Expected return on assets.

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Bond commitments

In the ordinary course of business, predominantly in the Architectural Services and Architectural Framing Systems Segments, we are required to provide surety or performance bonds that commit payments to our customers for any non-performance.

In the ordinary course of business, predominantly in the Architectural Services and Architectural Metals Segments, we are required to provide surety or performance bonds that commit payments to our customers for any non-performance.

At March 1, 2025, $ 1.2 billion of these types of bonds were outstanding, of which, $ 394.1 million is on our backlog.

11 unchanged sentences

Balance at end of period $ 18,461 $ 21,362

Additionally, we 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.

Additionally, we 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.

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

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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 $ 0.4 million at March 2, 2024 and February 25, 2023, respectively.

The estimated remaining liability for these remediation activities was $ 0.1 million and $ 0.4 million at March 1, 2025 and March 2, 2024, respectively.

New Markets Tax Credit (NMTC) transactions

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

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

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

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

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 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 second quarter of fiscal 2024, one NMTC transaction was settled as expected and as a result, a $ 4.7 million benefit was recorded in other (income) expense, net.

During fiscal 2024, one NMTC transaction was settled as expected and resulted in a $ 4.7 million benefit, which was recorded in other (income) expense, net.

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

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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 has appealed 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.

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

The claimant then sought to confirm this award in Los Angeles Superior Court in March 2023.

In response, the Company moved to vacate the award.

Later in March 2023, the Superior Court confirmed the award, which the Company appealed in June 2023.

The appeal was argued before the California Court of Appeals, Second Appellate District, Division Seven, on March 7, 2025.

The California Court of Appeals confirmed the judgment of the Superior Court on March 25, 2025.

The Company paid the final arbitration award, including accrued post-judgment interest, in the amount of $ 24.7 million, on April 7, 2025.

As a result of the judgment, we recorded expense of $ 9.4 million, which represents the impact of the award amount net of existing reserves and estimated insurance proceeds.

This impact was recorded in cost of goods sold in the fourth quarter of fiscal 2025.

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

Although it is very difficult to accurately predict the outcome of any such proceedings, facts currently available indicate that no matters will result in losses that would have a material adverse effect on the results of operations, cash flows or financial condition of the Company.

Supplier Finance Program Obligations

The Company has a supplier financing arrangement that enables select suppliers, at their sole discretion, to sell our receivables (i.e., our payment obligations to the suppliers) on a non-recourse basis in order to be paid earlier than our payment terms provide.

These suppliers’ voluntary inclusion of invoices in the supplier financing arrangement has no bearing on our payment terms, the amounts we pay, or our liquidity.

We have no economic interest in the supplier’s decision to participate in the supplier financing program, and we do not provide any guarantees in connection with it.

The balances owed are reflected in accounts payable in the consolidated balance sheets and are reflected in net cash provided by operating activities in our consolidated statements of cash flows when settled.

The following table summarizes the obligation activity for the years ended March 1, 2025 and March 2, 2024 and outstanding balance as of March 1, 2025 and March 2, 2024 that we have confirmed as valid to the administrators of our program:

(In thousands) 2025 2024

Balance at beginning of period $ 6,527 $ —

Obligations added to the program 47,226 33,133

Obligations settled ( 46,907 ) ( 26,606 )

Balance at end of period $ 6,846 $ 6,527

Shareholders' Equity

We paid dividends totaling $ 21.7 million ($ 1.01 per share) in fiscal 2025, $ 21.1 million ($ 0.97 per share) in fiscal 2024 and $ 19.7 million ($ 0.90 per share) in fiscal 2023.

Share Repurchases

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Accumulated Other Comprehensive Loss

The following summarizes the accumulated other comprehensive loss, net of tax, at March 2, 2024 and February 25, 2023:

The following summarizes the accumulated other comprehensive loss, net of tax, at March 1, 2025 and March 2, 2024:

(In thousands) 2025 2024

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(In thousands) 2025 2024 2023

Restricted stock awards and restricted stock unit awards $ 6,753 $ 5,607 $ 5,345

Performance stock unit awards 2,714 2,389 501

Restricted stock awards and restricted stock units $ 8,040 $ 6,753 $ 5,607

Performance share units 2,685 2,714 2,389

Stock options — 254 660

2 unchanged sentences

Stock Options

Stock option and SAR activity for the current fiscal year is summarized below:

Shares Weighted

Exercise Price Weighted Average Remaining Contractual Life Aggregate

Intrinsic Value at Year-End

Outstanding at February 25, 2023 158,000 $ 23.04

Awards exercised ( 86,458 ) 23.04

Awards canceled ( 71,542 ) 23.04

Outstanding at March 2, 2024

— $ — 0.0 years $ —

For the fiscal year ended March 2, 2024, there were no cash proceeds from the exercise of stock options as all stock options were exercised on a stock-for-stock basis.

For fiscal 2024, 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 $ 1.8 million.

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 was $ 2.7 million.

Service Condition Awards

2 unchanged sentences

Number of Shares and Units Weighted Average Grant Date Fair Value

February 25, 2023 375,080 $ 35.89

Awards outstanding at March 2, 2024

384,461 $ 40.28

Vested ( 166,957 ) 32.54

Granted 137,227 63.59

( 160,028 ) 42.67

March 2, 2024 384,461 $ 40.28

Forfeited and cancelled

( 13,441 ) 51.37

Awards outstanding at March 1, 2025

348,219 $ 48.53

Performance Condition Awards

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 2024, 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 period.

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, ranging from 0 % to 200 % of target, dependent on achieving a defined performance goal and being employed at the end of the performance period.

The following table summarizes nonvested performance share units granted and outstanding for which all plans are at maximum achievement of 200 % of target:

In each of the first quarters of fiscal 2025, fiscal 2024 and fiscal 2023, 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 period.

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, ranging from 0 % to 200 % of target, dependent on achieving defined performance goals and being employed at the end of the performance period.

The following table summarizes nonvested performance share units granted and outstanding for which plans are at 100 % to 200 % of target:

Number of Shares and Units Weighted Average Grant Date Fair Value

February 25, 2023 79,699 $ 40.83

Awards outstanding at March 2, 2024

115,104 $ 41.89

March 2, 2024 115,104 $ 41.89

( 79,526 ) 34.90

Forfeited and cancelled

( 11,372 ) 52.46

Awards outstanding at March 1, 2025

101,120 $ 51.13

Includes 39,763 shares for performance goals component of the fiscal 2022-2024 performance period.

At March 1, 2025, there was $ 11.8 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 21 months.

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Earnings before income taxes $ 112,574 $ 129,253 $ 116,621

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

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

(In thousands) 2025 2024 2023

7 unchanged sentences

Total deferred 3,836 ( 9,748 ) ( 7,185 )

Total non-current tax (benefit) expense 30 2,177 ( 329 )

Total non-current tax expense

Total income tax expense $ 27,522 $ 29,640 $ 12,514

6 unchanged sentences

Valuation allowance ( 0.3 ) 1.0 ( 4.7 )

Nontaxable gain (loss) on life insurance policies — 0.2 1.2

Nontaxable (loss) gain on life insurance policies ( 0.2 ) — 0.2

Deduction for foreign derived intangible income ( 0.4 ) ( 0.3 ) ( 0.2 )

5 unchanged sentences

Consolidated effective income tax rate 24.4 % 22.9 % 10.7 %

The effective tax rate for fiscal 2025 increased 1.5 percentage points from fiscal 2024, primarily due to an increase in taxes for nondeductible executive compensation in fiscal 2025.

The effective tax rate for fiscal 2024 increased 12.2 percentage points from fiscal 2023, primarily due to the impact of discrete items in fiscal 2023.

Deferred tax assets and deferred tax liabilities at March 2, 2024 and February 25, 2023 were:

Deferred tax assets and deferred tax liabilities at March 1, 2025 and March 2, 2024 were:

(In thousands) 2025 2024

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The Company is no longer subject to U.S.

federal tax examinations or state and local tax examinations for years prior to fiscal 2021.

federal tax examinations or state and local tax examinations for years prior to fiscal 2022, or state and local tax examinations for years prior to fiscal 2021.

The Company is not currently under U.S.

federal examination for years subsequent to fiscal 2020, and there is very limited audit activity of the Company’s income tax returns in U.S.

state jurisdictions or international jurisdictions.

federal examination for years subsequent to fiscal 2021.

The Company considers the earnings of its non-U.S.

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In December 2021, the OECD issued model rules for a new global minimum tax framework (“Pillar Two”), and various governments around the world have issued, or are in the process of issuing, legislation to implement these rules.

The Company is within the scope of the OECD Pillar Two model rules and is assessing the impact thereof.

As of March 4, 2024, we believe the implementation of these rules will not have a material impact on our financial results.

The Company is within the scope of the OECD Pillar Two model rules and has assessed the impact thereof.

Based on available legislation, we concluded there was no material impact on income taxes with respect to Pillar Two for the year ended March 1, 2025.

We will continue to evaluate the potential future impacts and will monitor and review the issuance of additional guidance.

Earnings per Share

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Business Segment Data

We have four reporting segments:

• 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 Glass Segment coats and fabricates high-performance glass used in custom window and wall systems on non-residential 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 Large-Scale Optical (LSO) Segment manufactures high-performance glazing products for the custom framing, fine art, and engineered optics markets.

We have four operating segments which are also reportable segments.

Each of our four segments have distinct economic characteristics, including products and services provided, production processes and varying ranges in performance and results:

• The Architectural Metals Segment designs, engineers, fabricates and finishes aluminum window, curtainwall, storefront and entrance systems used primarily in non-residential construction.

• The Architectural Services Segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install architectural curtainwall and other façade-related systems primarily in non-residential construction.

• The Architectural Glass Segment cuts, treats, coats and fabricates high-performance glass used in custom window and wall systems primarily for non-residential buildings.

• The Performance Surfaces Segment develops and manufactures high-performance coated materials for a variety of applications, including wall decor, museums, graphic design, digital displays, architectural interiors, and industrial flooring.

The Company’s CEO is the chief operating decision maker (CODM) .

The CODM utilizes net sales and adjusted earnings before interest and taxes (EBIT) to assess segment performance and make decisions about the allocation of operating and capital resources by analyzing recent results, trends, and variances of each segment in relation to forecasts and historical performance.

Net sales, adjusted cost of sales, adjusted SG&A, adjusted other income (expense), and the resulting adjusted EBIT for each of the Company’s four reportable segments are presented below.

Segment net sales is defined as net sales for a certain segment and includes revenue related to intersegment transactions.

We report net sales intersegment eliminations separately to exclude these sales from our consolidated total.

Segment operating income is equal to net sales, less cost of goods sold, SG&A, and any asset impairment charges associated with the segment.

Segment operating income includes operating income related to intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level.

We report these unallocated corporate costs separately in Corporate and other.

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

(In thousands) 2024 2023 2022

Architectural Framing Systems $ 601,736 $ 649,778 $ 546,557

Architectural Glass

Segment EBIT includes intersegment sales transactions and excludes certain corporate costs that are not allocated at a segment level.

We report these unallocated corporate costs in Corporate and Other.

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Total

52-Weeks Ended March 1, 2025

Net sales to external customers

$ 524,617 $ 419,861 $ 294,385 $ 122,131 $ 1,360,994

Architectural Services

Intersegment net sales

92 — 27,812 — 27,904

Large-Scale Optical 99,223 104,215 101,673

Intersegment elimination ( 40,888 ) ( 40,478 ) ( 50,915 )

Total $ 1,416,942 $ 1,440,696 $ 1,313,977

Operating Income (Loss)

Architectural Framing Systems $ 64,833 $ 81,875 $ 38,088

Architectural Glass

524,709 419,861 322,197 122,131 1,388,898

Architectural Services

Adjusted cost of sales (1)

( 373,902 ) ( 344,702 ) ( 220,636 ) ( 76,487 ) ( 1,015,727 )

Large-Scale Optical 24,233 25,348 23,618

Corporate and other ( 35,119 ) ( 28,185 ) ( 19,375 )

Total $ 133,833 $ 125,788 $ 22,045

Depreciation and Amortization

Architectural Framing Systems $ 19,226 $ 19,386 $ 20,361

Architectural Glass

Adjusted SG&A (2)

( 96,687 ) ( 45,604 ) ( 42,287 ) ( 21,505 ) ( 206,083 )

Architectural Services

Adjusted other income (expense), net (3)

— — 115 — 115

Large-Scale Optical 3,040 3,088 3,185

Corporate and other 3,356 4,012 4,388

Total $ 41,588 $ 42,403 $ 49,993

Capital Expenditures

Architectural Framing Systems $ 4,733 $ 11,432 $ 7,344

Architectural Glass

Adjusted EBIT $ 54,120 $ 29,555 $ 59,389 $ 24,139 $ 167,203

53-Weeks Ended March 2, 2024

Net sales to external customers

$ 598,248 $ 377,443 $ 342,028 $ 99,223 $ 1,416,942

Architectural Services

Intersegment net sales

3,488 979 36,421 — 40,888

Large-Scale Optical 16,896 13,474 2,250

Corporate and other 6,243 10,975 2,933

Total $ 43,180 $ 45,177 $ 21,841

Identifiable Assets

Architectural Framing Systems $ 363,512 $ 426,946 $ 414,012

Architectural Glass

601,736 378,422 378,449 99,223 1,457,830

Architectural Services

Adjusted cost of sales (1)

( 425,424 ) ( 323,761 ) ( 267,469 ) ( 60,636 ) ( 1,077,290 )

Large-Scale Optical 83,731 69,035 56,926

Corporate and other 96,519 69,814 77,443

Total $ 884,064 $ 915,365 $ 887,863

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.

Adjusted SG&A (2)

( 105,509 ) ( 40,295 ) ( 42,934 ) ( 14,354 ) ( 203,092 )

Adjusted other income (expense), net (3)

— — ( 2,263 ) — ( 2,263 )

Adjusted EBIT

$ 70,803 $ 14,366 $ 65,783 $ 24,233 $ 175,185

52-Weeks Ended February 25, 2023

Net sales to external customers

$ 647,949 $ 408,566 $ 279,966 $ 104,215 $ 1,440,696

Intersegment net sales

1,829 2,061 36,588 — 40,478

649,778 410,627 316,554 104,215 1,481,174

Adjusted cost of sales (1)

( 463,902 ) ( 352,372 ) ( 247,073 ) ( 64,565 ) ( 1,127,912 )

Adjusted SG&A (2)

( 104,002 ) ( 40,115 ) ( 40,872 ) ( 14,303 ) ( 199,292 )

Adjusted other income (expense), net (3)

— — ( 47 ) — ( 47 )

Adjusted EBIT

$ 81,874 $ 18,140 $ 28,562 $ 25,347 $ 153,923

Adjusted cost of sales excludes $ 4.2 million and $ 5.5 million of adjustments related to acquisition and restructuring costs as described in more detail within the reconciliation presented below, respectively, for the years ended March 1, 2025 and March 2, 2024.

(2) Adjusted SG&A expenses excludes $ 11.5 million and $ 3.0 million of adjustments related to acquisition and restructuring costs and impairment expense as described in more detail within the reconciliation presented below, respectively, for the years ended March 1, 2025 and March 2, 2024.

Adjusted Other (income) expense, net excludes $ 4.7 million of NMTC benefit recorded for the year ended March 2, 2024 as described in more detail within the reconciliation presented below.

The following table presents the reconciliation of adjusted EBIT to income before income taxes, the nearest measurement under GAAP:

(In thousands) 2025 2024 2023

Segment Adjusted EBIT

$ 167,203 $ 175,185 $ 153,923

Corporate and Other expenses

( 32,772 ) ( 35,454 ) ( 29,642 )

Segment acquisition-related costs (1)

( 4,529 ) — —

Segment restructuring costs (2)

( 3,535 ) ( 8,496 ) —

Impairment expense (3)

( 7,634 ) — —

NMTC settlement gain (4)

Interest expense, net

( 6,159 ) ( 6,669 ) ( 7,660 )

Earnings before income taxes

$ 112,574 $ 129,253 $ 116,621

Segment acquisition-related costs include:

• Transaction costs related to the UW Solutions acquisition.

• Integration costs related to one-time expenses incurred to integrate the UW Solutions acquisition.

• Backlog amortization is related the value attributed to contracting the backlog purchased in the UW Solutions acquisition.

These costs were amortized in SG&A over the period that the contracted backlog was shipped.

• Inventory step-up is related to the incremental cost to value inventory acquired as part of the UW Solutions acquisition at fair value.

These costs were expensed to cost of goods sold over the period the inventory was sold.

(2) Segment restructuring charges related to Project Fortify.

Refer to Note 18.

Impairment expense on intangible assets in the Architectural Metals Segment.

Refer to Note 6.

Realization of a NMTC benefit which was recorded in other income (expense), net.

Refer to Note 10.

The following table presents the capital expenditures, depreciation and amortization and identifiable assets by reportable segments and the reconciliation to amounts reported for GAAP:

(In thousands) Architectural Metals Architectural Services Architectural Glass Performance Surfaces Corporate and Other Total

Capital expenditures $ 3,333 $ 7,522 $ 13,782 $ 9,479 $ 1,477 $ 35,593

Depreciation and amortization 16,471 3,978 12,274 9,085 2,800 44,608

Identifiable assets 343,553 179,311 213,067 345,034 94,304 1,175,269

Capital expenditures $ 4,733 $ 3,166 $ 12,142 $ 16,896 $ 6,243 $ 43,180

Depreciation and amortization 19,226 4,011 11,955 3,040 3,356 41,588

Identifiable assets 363,512 131,651 208,651 83,731 96,519 884,064

Capital expenditures $ 11,432 $ 3,683 $ 5,613 $ 13,474 $ 10,975 $ 45,177

Depreciation and amortization 19,386 3,953 11,964 3,088 4,012 42,403

Identifiable assets 426,946 141,840 207,730 69,035 69,814 915,365

The following table presents net sales, based on the location in which the sale originated, and long-lived assets, representing property, plant and equipment, net of related depreciation, by geographic region.

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Total $ 1,360,994 $ 1,416,942 $ 1,440,696

(In thousands) March 1, 2025 March 2, 2024 February 25, 2023

Long-Lived Assets

5 unchanged sentences

operations were $ 54.1 million, $ 47.6 million and $ 56.2 million in fiscal 2025, 2024 and 2023, respectively, representing approximately 4 %, 3 % and 4 % of consolidated net sales in each of these fiscal years, respectively.

On November 4, 2024, we completed the acquisition of UW Solutions for $ 240.9 million in cash.

UW Solutions is a U.S.

based, vertically integrated manufacturer of high-performance coated substrates with a portfolio of well-known brands, including ResinDEK, ChromaLuxe, RDC Coatings, and Unisub, each known as a leader in its specified applications.

The UW Solutions business activity is included in our Performance Surfaces Segment.

The total purchase consideration was $ 232.2 million in cash, net of a favorable net working capital adjustment of $ 0.9 million and cash acquired of $ 8.7 million.

The acquisition was funded with cash on hand and borrowings under our existing credit agreement.

During fiscal 2025, we incurred pre-tax acquisition-related expenses of $ 10.3 million associated with the UW Solutions acquisition.

We incurred $ 1.5 million for inventory step-up expense and $ 0.2 million of transaction costs which were included in costs of sales as well as $ 4.2 million of transaction costs, $ 2.1 million of integration costs, and $ 2.3 million of amortization of acquired backlog, which were included in SG&A within our consolidated results of operations.

We accounted for the acquisition as a purchase of a business and recorded the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed as goodwill of $ 107.8 million.

The goodwill recognized is attributable primarily to expected synergies by integrating UW Solutions into our Performance Surfaces Segment and by creating a scalable growth platform in the specialty coatings and materials market.

The acquired goodwill is expected to be amortized and deductible for income tax purposes.

We have provisionally determined the appropriate fair values of the acquired intangible assets and completed our analysis of the economic lives of the assets acquired.

We assigned $ 21.0 million to a tradename asset and are amortizing it over a 15-year expected life.

We assigned $ 2.3 million to a contract backlog asset and amortized it over a 4-month life.

We assigned $ 47.4 million to a customer relationship asset and are amortizing a portion over a 10-year expected life and the remainder over a 15-year expected life, based on historical customer attrition rates.

We assigned $ 7.8 million to a developed technology asset and are amortizing over a 7.5-year expected life.

The following table presents the estimated fair values of assets acquired and liabilities assumed at the acquisition date:

(In thousands)

Cash and cash equivalents $ 8,703

Receivables, net 12,427

Inventories, net 17,903

Other current assets 1,122

Property, plant and equipment

Operating lease right-of-use assets 14,189

Goodwill 107,826

Intangible assets, net 79,679

Other non-current assets 166

Total Assets $ 268,578

Accounts payable 5,126

Accrued compensation and benefits 6,900

Operating lease liabilities 1,259

Other current liabilities 1,490

Non-current operating lease liabilities 12,930

Total Liabilities $ 27,705

Net assets recorded $ 240,873

The impact of the acquisition of UW Solutions on our consolidated results of operations for fiscal 2025 was $ 32.0 million of net sales and $ 7.4 million of net loss, respectively.

The net sales and net loss represent approximately 17 weeks of operating results.

The following supplemental unaudited pro forma information presents our financial results as if the acquisition of UW Solutions had occurred on February 26, 2023.

This supplemental pro forma information has been prepared for comparative purposes and would not necessarily indicate what may have occurred if the acquisition had been completed on February 26, 2023, and this information is not intended to be indicative of future results.

(in thousands, except earnings per share data)

Net sales $ 1,423,635 $ 1,513,734

Net earnings 90,978 83,256

Earnings per share:

Basic $ 4.19 $ 3.81

Diluted $ 4.16 $ 3.77

Nonrecurring charges of $ 4.4 million of transaction costs, $ 2.1 million of integration costs, $ 2.3 million of amortization of acquired backlog, and $ 1.5 million of inventory step-up expense incurred in fiscal 2025 are reflected as if those charges were incurred in the first and second quarters of the fiscal 2024 supplemental pro forma earnings.

These amounts have been calculated after applying our accounting policies and adjusting the results of UW Solutions to reflect the effect of definite-lived intangible assets recognized as part of the business combination on amortization expense as if the acquisition had occurred on February 26, 2023.

Restructuring

During the fourth quarter of fiscal 2024, we announced strategic actions to further streamline our business operations, enable a more efficient cost model, and better position the Company for profitable growth (referred to as “Project Fortify”).

Project Fortify will primarily impact the Architectural Framing Systems Segment and include:

During the fourth quarter of fiscal 2024, we announced strategic actions to streamline our business operations, enable a more efficient cost model, and better position the Company for profitable growth (referred to as “Project Fortify”).

Project Fortify primarily impacted the Architectural Metals Segment and included:

• Eliminating certain lower-margin product and service offerings, enabling consolidation into a single operating entity.

1 unchanged sentence

• Simplifying the segment’s brand portfolio and commercial model to improve flexibility, better leverage the Company’s capabilities, and enhance customer service.

Additionally, the Company will implement actions to optimize processes and streamline resources in its Architectural Services and Corporate Segments.

The Company expects these actions to be substantially complete by the third quarter of fiscal 2025.

The Company expects to incur approximately $ 16 million to $ 18 million of pre-tax charges in connection with Project Fortify, including:

• $ 7 million to $ 9 million of severance and employee related costs;

• $ 2 million to $ 3 million of contract termination costs:

• $ 6 million to $ 7 million of other expenses.

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

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

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

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

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

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.

During fiscal 2024, we incurred $ 12.4 million of pre-tax costs associated Project Fortify, of which $ 5.5 million is included within cost of sales and $ 6.9 million is included within selling, general and administrative expenses.

During fiscal 2023, we incurred $ 0.1 million of additional pre-tax costs associated with the finalization of the restructuring plans that were announced in fiscal 2022.

During fiscal 2022, we incurred $ 30.5 million of pre-tax costs associated with the execution of the restructuring plans that were announced in fiscal 2022, 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.

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

Additionally, the Company implemented actions to optimize processes and streamline resources in its Architectural Services and Corporate and Other.

During fiscal 2025, we incurred $ 4.3 million of pre-tax costs associated with Project Fortify, of which $ 2.5 million is included in cost of sales and $ 1.8 million is included within SG&A expenses.

During fiscal 2024, we incurred $ 12.4 million of pre-tax costs associated with Project Fortify, of which $ 5.5 million is included within cost of sales and $ 6.9 million is included within SG&A expenses.

The Company completed Project Fortify during the fourth quarter of fiscal 2025 and incurred at total of $ 16.7 million of restructuring changes, which included:

• $ 7.0 million of severance and employee related costs;

• $ 1.7 million contract termination costs:

• $ 8.0 million of other expenses.

These actions have led to estimated annualized pre-tax cost savings of approximately $ 14 million.

(In thousands) Architectural Metals Architectural Services Architectural Glass Corporate & Other Total

March 1, 2025

Asset impairment on property, plant and equipment $ 2,329 $ — $ 49 $ 3,851 $ 6,229

Termination benefits $ 928 $ ( 640 ) $ — $ 788 $ 1,076

Contract termination costs — — — — —

Other restructuring charges 3,096 151 — — 3,247

Total restructuring charges $ 4,024 $ ( 489 ) $ — $ 788 $ 4,323

February 25, 2023

March 2, 2024

Termination benefits 3,348 2,475 — 56 5,879

Contract termination costs 1,568 49 — — 1,617

Other restructuring charges 1,054 2 — 3,851 4,907

Total restructuring charges $ 5,970 $ 2,526 $ — $ 3,907 $ 12,403

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

1 unchanged sentence

All remaining accrual balances are expected to be paid within fiscal 2026.

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

(In thousands) Architectural Metals Architectural Services Architectural Glass Corporate & Other Total

Balance at February 25, 2023 $ 62 $ — $ 23 $ — $ 85

1 unchanged sentence

Payments ( 1,233 ) ( 410 ) ( 23 ) — ( 1,666 )

Other adjustments ( 151 ) ( 17 ) — ( 14 ) ( 182 )

Balance at February 25, 2023

Balance at March 2, 2024

$ 2,814 $ 2,067 $ — $ 56 $ 4,937

1 unchanged sentence

Payments ( 4,256 ) ( 605 ) — ( 323 ) ( 5,184 )

Other adjustments 797 — — — 797

Balance at March 1, 2025 $ 1,286 $ 650 $ — $ 511 $ 2,447

The charges presented in the rollforward of our restructuring accruals do not include items charged directly to expense as incurred, as those items are not reflected in accrued payroll and related benefits and other current liabilities in the consolidated balance sheets.

On April 23, 2025, we announced a second phase of Project Fortify to drive further cost efficiencies, primarily in the Architectural Metals and Architectural Services Segments.

Phase 2 will focus on further optimizing our operating footprint and aligning resources to enable a more effective operating model.

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.

The charges include the following:

• $ 9 million to $ 10 million of severance and employee related costs;

• $ 2 million to $ 3 million of contract termination costs;

• $ 12 million to $ 13 million of other expenses.

The Company expects the actions associated with Phase 2 to be substantially completed by the end of the fourth quarter of fiscal 2026 and expects them to deliver annualized pre-tax cost savings from Phase 2 of approximately $ 13 million to $ 15 million.

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

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

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

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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

What changed 10-K

Item 8. Financial Statements and Supplementary Data