10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________________ 

FORM 10-Q

 _________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 28, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission File Number: 0-6365

_________________________________ 

APOGEE ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

 _________________________________

Minnesota			41-0919654
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
4400 West 78th Street, Suite 520	Minneapolis	Minnesota	55435
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (952) 835-1874

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

_________________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.33 1/3 per share	APOG	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    o  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     x  Yes    o  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	☐
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    x  No

As of January 5, 2021, 26,007,703 shares of the registrant’s common stock, par value $0.33 1/3 per share, were outstanding.

APOGEE ENTERPRISES, INC. AND SUBSIDIARIES

		Page
PART I	Financial Information
Item 1.	Financial Statements (Unaudited):
	Consolidated Balance Sheets	4
	Consolidated Results of Operations	5
	Consolidated Statements of Comprehensive Earnings	6
	Consolidated Statements of Cash Flows	7
	Consolidated Statements of Shareholders' Equity	8
	Notes to Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
PART II	Other Information
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6.	Exhibits	28
Signatures		29

3

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except stock data)	November 28, 2020		February 29, 2020
Assets
Current assets
Cash and cash equivalents	$	55,413	$	14,952
Receivables, net	172,877		196,806
Inventories	73,815		71,089
Costs and earnings on contracts in excess of billings	29,141		73,582
Other current assets	14,389		25,481
Total current assets	345,635		381,910
Property, plant and equipment, net	302,082		324,386
Operating lease right-of-use assets	62,950		52,892
Goodwill	192,883		185,516
Intangible assets	136,843		140,191
Other non-current assets	45,589		44,096
Total assets	$	1,085,982	$	1,128,991
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	69,719	$	69,056
Accrued payroll and related benefits	40,170		40,119
Billings on contracts in excess of costs and earnings	25,945		32,696
Operating lease liabilities	12,098		11,272
Current portion of debt	2,000		5,400
Other current liabilities	61,768		118,314
Total current liabilities	211,700		276,857
Long-term debt	166,463		212,500
Non-current operating lease liabilities	53,122		43,163
Non-current self-insurance reserves	26,085		22,831
Other non-current liabilities	81,269		56,862
Commitments and contingent liabilities (Note 8)
Shareholders’ equity
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 25,962,041 and 26,443,166 respectively	8,654		8,814
Additional paid-in capital	155,974		154,016
Retained earnings	414,749		388,010
Common stock held in trust	(183)		(685)
Deferred compensation obligations	183		685
Accumulated other comprehensive loss	(32,034)		(34,062)
Total shareholders’ equity	547,343		516,778
Total liabilities and shareholders’ equity	$	1,085,982	$	1,128,991

See accompanying notes to consolidated financial statements.

4

CONSOLIDATED RESULTS OF OPERATIONS

(unaudited)

	Three Months Ended				Nine Months Ended
(In thousands, except per share data)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Net sales	$	313,583	$	337,916	$	922,162	$	1,050,340
Cost of sales	243,998		263,606		716,139		808,856
Gross profit	69,585		74,310		206,023		241,484
Selling, general and administrative expenses	19,835		52,716		126,590		169,274
Operating income	49,750		21,594		79,433		72,210
Interest expense, net	1,502		1,995		4,240		7,176
Other income, net	472		231		684		599
Earnings before income taxes	48,720		19,830		75,877		65,633
Income tax expense	11,447		4,596		18,070		15,677
Net earnings	$	37,273	$	15,234	$	57,807	$	49,956
Earnings per share - basic	$	1.44	$	0.58	$	2.22	$	1.89
Earnings per share - diluted	$	1.42	$	0.57	$	2.19	$	1.87
Weighted average basic shares outstanding	25,883		26,432		26,068		26,481
Weighted average diluted shares outstanding	26,225		26,750		26,350		26,776

See accompanying notes to consolidated financial statements.

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(unaudited)

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Net earnings	$	37,273	$	15,234	$	57,807	$	49,956
Other comprehensive earnings (loss):
Unrealized (loss) gain on marketable securities, net of $—, $(11), $39 and $38 of tax (benefit) expense, respectively	(2)		(44)		145		145
Unrealized gain on derivative instruments, net of $90, $119, $305 and $146 of tax expense, respectively	294		387		997		476
Foreign currency translation adjustments	899		(491)		887		(586)
Other comprehensive earnings (loss)	1,191		(148)		2,029		35
Total comprehensive earnings	$	38,464	$	15,086	$	59,836	$	49,991

See accompanying notes to consolidated financial statements.

6

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019
Operating Activities
Net earnings	$	57,807	$	49,956
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	38,000		34,681
Share-based compensation	6,163		4,617
Deferred income taxes	5,012		10,088
Gain on disposal of assets	(19,346)		(623)
Noncash lease expense	9,531		8,993
Other, net	(69)		(2,007)
Changes in operating assets and liabilities:
Receivables	24,153		(5,288)
Inventories	(2,722)		2,474
Costs and earnings on contracts in excess of billings	44,501		(17,156)
Accounts payable and accrued expenses	(43,915)		(22,457)
Billings on contracts in excess of costs and earnings	(6,981)		4,901
Refundable and accrued income taxes	12,424		(6,159)
Operating lease liability	(9,168)		(7,468)
Other	5,122		(951)
Net cash provided by operating activities	120,512		53,601
Investing Activities
Capital expenditures	(17,116)		(41,176)
Proceeds from sales of property, plant and equipment	23,724		591
Other	(1,090)		(857)
Net cash provided (used) by investing activities	5,518		(41,442)
Financing Activities
Borrowings on line of credit	193,332		108,000
(Repayment) borrowings on debt	(5,400)		150,000
Payments on line of credit	(237,500)		(252,500)
Repurchase and retirement of common stock	(20,731)		(20,010)
Dividends paid	(14,546)		(13,808)
Other	(853)		(2,584)
Net cash used by financing activities	(85,698)		(30,902)
Increase (decrease) in cash and cash equivalents	40,332		(18,743)
Effect of exchange rates on cash	129		32
Cash, cash equivalents and restricted cash at beginning of year	14,952		29,241
Cash, cash equivalents and restricted cash at end of period	$	55,413	$	10,530
Noncash Activity
Capital expenditures in accounts payable	$	684	$	1,205

See accompanying notes to consolidated financial statements.

7

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)

(In thousands)	Common Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Stock Held in Trust		Deferred Compensation Obligation		Accumulated Other Comprehensive (Loss) Income		Total Shareholders' Equity
Balance at February 29, 2020	26,443	$	8,814	$	154,016	$	388,010	$	(685)	$	685	$	(34,062)	$	516,778
Net earnings	—	—		—		2,876		—		—		—		2,876
Unrealized gain on marketable securities, net of $26 tax expense	—	—		—		—		—		—		97		97
Unrealized loss on foreign currency hedge, net of $189 tax benefit	—	—		—		—		—		—		(617)		(617)
Foreign currency translation adjustments	—	—		—		—		—		—		(6,151)		(6,151)
Issuance of stock, net of cancellations	183	62		(39)		—		(11)		11		—		23
Share-based compensation	—	—		1,406		—		—		—		—		1,406
Share repurchases	(231)	(77)		(1,370)		(3,284)		—		—		—		(4,731)
Other share retirements	(26)	(9)		(151)		(505)		—		—		—		(665)
Cash dividends	—	—		—		(4,872)		—		—		—		(4,872)
Balance at May 30, 2020	26,369	$	8,790	$	153,862	$	382,225	$	(696)	$	696	$	(40,733)	$	504,144
Net earnings	—	—		—		17,658		—		—		—		17,658
Unrealized gain on marketable securities, net of $13 tax expense	—	—		—		—		—		—		50		50
Unrealized gain on foreign currency hedge, net of $404 tax expense	—	—		—		—		—		—		1,319		1,319
Foreign currency translation adjustments	—	—		—		—		—		—		6,139		6,139
Issuance of stock, net of cancellations	121	41		(23)		—		(11)		11		—		18
Share-based compensation	—	—		2,256		—		—		—		—		2,256
Other share retirements	(23)	(8)		(139)		(390)		—		—		—		(537)
Cash dividends	—	—		—		(4,879)		—		—		—		(4,879)
Balance at August 29, 2020	26,467	$	8,823	$	155,956	$	394,614	$	(707)	$	707	$	(33,225)	$	526,168
Net earnings	—	—		—		37,273		—		—		—		37,273
Unrealized loss on marketable securities, net of $— tax benefit	—	—		—		—		—		—		(2)		(2)
Unrealized gain on foreign currency hedge, net of $90 tax expense	—	—		—		—		—		—		294		294
Foreign currency translation adjustments	—	—		—		—		—		—		899		899
Issuance of stock, net of cancellations	10	3		15		—		524		(524)		—		18
Share-based compensation	—	—		2,501		—		—		—		—		2,501
Exercise of stock options	127	42		1,414		—		—		—		—		1,456
Share repurchases	(620)	(207)		(3,781)		(12,012)		—		—		—		(16,000)
Other share retirements	(22)	(7)		(131)		(331)		—		—		—		(469)
Cash dividends	—	—		—		(4,795)		—		—		—		(4,795)
Balance at November 28, 2020	25,962	$	8,654	$	155,974	$	414,749	$	(183)	$	183	$	(32,034)	$	547,343

See accompanying notes to consolidated financial statements.

8

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)

(In thousands)	Common Shares Outstanding	Common Stock		Additional Paid-In Capital		Retained Earnings		Common Stock Held in Trust		Deferred Compensation Obligation		Accumulated Other Comprehensive (Loss) Income		Total Shareholders' Equity
Balance at March 2, 2019	27,015	$	9,005	$	151,842	$	367,597	$	(755)	$	755	$	(32,127)	$	496,317
Net earnings	—	—		—		15,443		—		—		—		15,443
Unrealized gain on marketable securities, net of $47 tax expense	—	—		—		—		—		—		181		181
Unrealized gain on foreign currency hedge, net of $2 tax expense	—	—		—		—		—		—		5		5
Foreign currency translation adjustments	—	—		—		—		—		—		(2,560)		(2,560)
Issuance of stock, net of cancellations	79	26		14		—		(12)		12		—		40
Share-based compensation	—	—		1,618		—		—		—		—		1,618
Share repurchases	(532)	(177)		(3,051)		(16,782)		—		—		—		(20,010)
Other share retirements	(32)	(11)		(183)		(1,266)		—		—		—		(1,460)
Cash dividends	—	—		—		(4,598)		—		—		—		(4,598)
Balance at June 1, 2019	26,530	$	8,843	$	150,240	$	360,394	$	(767)	$	767	$	(34,501)	$	484,976
Net earnings	—	—		—		19,279		—		—		—		19,279
Unrealized gain on marketable securities, net of $2 tax expense	—	—		—		—		—		—		8		8
Unrealized gain on foreign currency hedge, net of $25 tax expense	—	—		—		—		—		—		84		84
Foreign currency translation adjustments	—	—		—		—		—		—		2,465		2,465
Issuance of stock, net of cancellations	44	15		27		—		(11)		11		—		42
Share-based compensation	—	—		1,582		—		—		—		—		1,582
Other share retirements	(20)	(7)		(114)		(629)		—		—		—		(750)
Cash dividends	—	—		—		(4,605)		—		—		—		(4,605)
Balance at August 31, 2019	26,554	$	8,851	$	151,735	$	374,439	$	(778)	$	778	$	(31,944)	$	503,081
Net earnings	—	—		—		15,234		—		—		—		15,234
Unrealized loss on marketable securities, net of $11 tax benefit	—	—		—		—		—		—		(44)		(44)
Unrealized gain on foreign currency hedge, net of $119 tax expense	—	—		—		—		—		—		387		387
Foreign currency translation adjustments	—	—		—		—		—		—		(491)		(491)
Issuance of stock, net of cancellations	(1)	1		43		—		103		(103)		—		44
Share-based compensation	—	—		1,417		—		—		—		—		1,417
Other share retirements	—	(1)		(7)		(36)		—		—		—		(44)
Cash dividends	—	—		—		(4,605)		—		—		—		(4,605)
Balance at November 30, 2019	26,553	$	8,851	$	153,188	$	385,032	$	(675)	$	675	$	(32,092)	$	514,979

See accompanying notes to consolidated financial statements.

9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.Summary of Significant Accounting Policies

Basis of presentation

The consolidated financial statements of Apogee Enterprises, Inc. (we, us, our or the Company) have been prepared in accordance with accounting principles generally accepted in the United States. The information included in this Form 10-Q should be read in conjunction with the Company’s Form 10-K for the year ended February 29, 2020. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly and year to date operating results are reflected herein and are of a normal, recurring nature. The results of operations for the three- and nine-month periods ended November 28, 2020 are not necessarily indicative of the results to be expected for the full year.

COVID-19 considerations

The ongoing COVID-19 pandemic continues to cause volatility and uncertainty in global markets impacting worldwide economic activity. We have experienced some delays in commercial construction projects and orders as a result of COVID-19. In our Architectural Glass and Architectural Framing segments, orders have been delayed or have slowed, as customers and end markets face some uncertainty and delays in timing of work. In our Architectural Services segment, some construction site closures or project delays have occurred, and job sites have had to adjust to increased physical distancing and health-related precautions. Within our Large-Scale Optical (LSO) segment, most customers reopened and the segment's two manufacturing locations resumed normal operations during the latter part of the second quarter, after being shutdown for most of the first and second quarters due to governmental orders. We have also been impacted by quarantine-related absenteeism among our workforce, resulting in labor and capacity constraints at some of our facilities. The extent to which COVID-19 will continue to impact our business will depend on future developments and public health advancements, which have been buoyed recently by the commencement of vaccine production and distribution.

In response to COVID-19, we have implemented a variety of countermeasures to promote the health and safety of our employees during this pandemic, including health screening, physical distancing practices, enhanced cleaning, use of personal protective equipment, business travel restrictions, and remote work capabilities, in addition to quarantine-related paid leave and other employee assistance programs.

Adoption of new accounting standards

At the beginning of fiscal 2021, we adopted the guidance in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for a new impairment model on financial instruments which is based on expected credit losses, which was applied following a modified retrospective approach. Additionally, the new guidance makes targeted improvements to the impairment model for certain available-for-sale debt securities, including eliminating the concept of "other than temporary" from that model. The portion of the guidance related to available-for-sale debt securities was adopted following a prospective approach. The adoption of this ASU did not have a significant impact on earnings or financial condition. Refer to additional disclosures in Notes 2 and 4.

Subsequent events

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing. Subsequent to the end of the quarter, we announced the election of our new Chief Executive Officer, Ty R. Silberhorn, and entered into an employment agreement with him, effective January 4, 2021. Mr. Silberhorn replaces, Joseph F. Puishys, who announced his retirement, as an employee of the Company, in September 2020, effective January 4, 2021.

2.Revenue, Receivables and Contract Assets and Liabilities

Revenue

The following table disaggregates total revenue by timing of recognition (see Note 12 for disclosure of revenue by segment):

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Recognized at shipment	$	129,132	$	153,093	$	379,292	$	472,695
Recognized over time	184,451		184,823		542,870		577,645
Total	$	313,583	$	337,916	$	922,162	$	1,050,340

10

Receivables

Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Upon billing, aging of receivables is monitored until collection. An account is considered current when it is within agreed upon payment terms. 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)	November 28, 2020		February 29, 2020
Trade accounts	$	122,959	$	141,126
Construction contracts	9,727		20,808
Contract retainage	42,053		37,341
Total receivables	174,739		199,275
Less: allowance for credit losses	(1,862)		(2,469)
Net receivables	$	172,877	$	196,806

The following table summarizes the activity in the allowance for credit losses:

(In thousands)	November 28, 2020
Beginning balance	$	2,469
Additions charged to costs and expenses	325
Deductions from allowance, net of recoveries	(884)
Other changes (1)	(48)
Ending balance	$	1,862
(1) Result of foreign currency effects

Contract assets and liabilities

Contract assets consist of retainage, costs and earnings in excess of billings and other unbilled amounts typically generated when revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on contracts. Retainage is classified within receivables and deferred revenue is classified within other current liabilities on our consolidated balance sheets.

The time period between when performance obligations are complete and when payment is due is not significant. In certain of our businesses that recognize revenue over time, progress billings follow an agreed-upon schedule of values, and retainage is withheld by the customer until the project reaches a level of completion where amounts are released.

(In thousands)	November 28, 2020		February 29, 2020
Contract assets	$	71,194	$	110,923
Contract liabilities	27,965		35,954

The decrease in contract assets was mainly due to a reduction in costs and earnings in excess of billings, which is driven by the settlement of matters related to a legacy EFCO project, as well as the timing of projects. The change in contract liabilities was due to timing of project activity within our businesses that operate under long-term contracts.

Other contract-related disclosures	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Revenue recognized related to contract liabilities from prior year-end	$	2,044	$	4,589	$	16,239	$	22,044
Revenue recognized related to prior satisfaction of performance obligations	4,016		1,776		10,545		5,298

Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that timeframe. Generally, these contracts are in our businesses with long-term contracts which recognize revenue over time. As of November 28, 2020, the transaction price associated with unsatisfied performance obligations was approximately $901.6

11

million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	November 28, 2020
Within one year	$	498,623
Within two years	331,219
Beyond	71,786
Total	$	901,628

3.Supplemental Balance Sheet Information

Inventories

(In thousands)	November 28, 2020		February 29, 2020
Raw materials	$	43,292	$	36,611
Work-in-process	16,337		17,520
Finished goods	14,186		16,958
Total inventories	$	73,815	$	71,089

Other current liabilities

(In thousands)	November 28, 2020		February 29, 2020
Warranties	$	13,281	$	12,822
Accrued project losses	3,297		48,962
Property and other taxes	13,078		5,952
Accrued self-insurance reserves	9,912		8,307
Other	22,200		42,271
Total other current liabilities	$	61,768	$	118,314

Other non-current liabilities

(In thousands)	November 28, 2020		February 29, 2020
Deferred benefit from New Market Tax Credit transactions	$	15,717	$	15,717
Retirement plan obligations	8,138		8,294
Deferred compensation plan	8,437		8,452
Deferred tax liabilities	20,014		7,940
Other	28,963		16,459
Total other non-current liabilities	$	81,269	$	56,862

4.Financial Instruments

Marketable securities

Through our wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), we hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: 

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
November 28, 2020	$	12,556	$	459	$	—	$	13,015
February 29, 2020	11,692		275		—		11,967

Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments for the purpose of providing collateral for Prism’s obligations under the reinsurance agreements.

12

The amortized cost and estimated fair values of these bonds at November 28, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty.

(In thousands)	Amortized Cost		Estimated Fair Value
Due within one year	$	771	$	779
Due after one year through five years	7,682		7,978
Due after five years through 10 years	3,303		3,428
Due beyond 15 years	800		830
Total	$	12,556	$	13,015

Derivative instruments

In August 2019, we entered into an interest rate swap to hedge exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. As of November 28, 2020, the interest rate swap contract had a notional value of $55 million.

We periodically enter into forward purchase foreign currency cash flow hedge contracts and forward purchase aluminum hedge contracts, generally with an original maturity date of less than one year, to hedge foreign currency exchange rate risk and future purchases of aluminum in certain of our architectural businesses. As of November 28, 2020, we held foreign exchange forward contracts and aluminum forward contracts with U.S. dollar notional values of $18.7 million and $1.9 million, respectively, with the objective of reducing the exposure to fluctuations in the Canadian dollar, the Euro and the price of aluminum.

These derivative instruments are recorded within our consolidated balance sheets within other current assets and liabilities. Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive income.

Fair value measurements

Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). We do not have any Level 3 financial assets or liabilities.

(In thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Total Fair Value
November 28, 2020
Assets:
Money market funds	$	27,000	$	—	$	27,000
Commercial paper	—		4,300		4,300
Municipal and corporate bonds	—		13,015		13,015
Cash surrender value of life insurance	—		17,704		17,704
Foreign currency and aluminum forward/option contracts	—		896		896
Liabilities:
Deferred compensation	—		14,027		14,027
Interest rate swap contract	—		676		676
February 29, 2020
Assets:
Money market funds	$	2,689	$	—	$	2,689
Commercial paper	—		1,500		1,500
Municipal and corporate bonds	—		11,967		11,967
Cash surrender value of life insurance	—		16,560		16,560
Liabilities:
Deferred compensation	—		14,042		14,042
Foreign currency forward/option contract	—		340		340
Interest rate swap contract	—		561		561

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Money market funds and commercial paper

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.

Cash surrender value of life insurance and deferred compensation

Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. Changes in cash surrender value are recorded in other expense. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds.

Derivative instruments

The interest rate swap is measured at fair value using other observable market inputs, based off of 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. Industry standard data providers are our primary source for forward and spot rate information for both interest and currency rates and aluminum prices.

5.Goodwill and Other Identifiable Intangible Assets

Goodwill

Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that the carrying value of a reporting unit may not be recoverable. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by management on a regular basis.

In the third quarter of fiscal 2021, we changed the date of our annual goodwill impairment testing from our year-end to the first day in our fiscal fourth quarter. This change results in better alignment of the annual impairment testing with our strategic and annual planning processes. This change was determined to not be material and had no impact on our current or historical consolidated financial statements.

During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including a significant decline in our stock price and market capitalization, along with concerns resulting from the COVID-19 pandemic at four of our nine identified reporting units. Therefore, we performed an interim goodwill impairment evaluation as of May 30, 2020. Based on the results of the interim quantitative goodwill impairment analysis, the estimated fair value of each reporting unit exceeded its carrying value and, therefore, goodwill impairment was not indicated as of May 30, 2020. However, the estimated fair value did not exceed carrying value by a significant margin at two reporting units within the Architectural Framing Systems segment, EFCO and Sotawall, which had goodwill balances of $90.4 million and $26.7 million, respectively, at May 30, 2020. We utilized a discount rate of 11.0 percent in determining the discounted cash flows for EFCO and a discount rate of 10.4 percent in determining the discounted cash flows for Sotawall. We utilized a long-term growth rate of 3.0 percent in our fair value analysis for all reporting units. If our discount rates were to increase by 100 basis points at Sotawall and EFCO, the fair value of these reporting units would fall below carrying value, which would indicate impairment of the goodwill. Additionally, this discounted cash flow analysis is dependent upon achieving forecasted levels of revenue and profitability. If revenue or profitability were to fall below forecasted levels, or if market conditions were to decline in a material or sustained manner, impairment could be indicated at these reporting units, and potentially at other reporting units.

During the third quarter, we combined two reporting units into one reporting unit, following certain structural and leadership changes at the Company, specifically within the Architectural Framing Systems segment. Within this segment, as a result of integration efforts that are ongoing, leadership over our Tubelite and Alumicor reporting units have been combined and functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the combined business. The goodwill of these individual reporting units was aggregated to the combined reporting unit. We evaluated goodwill on a qualitative basis prior to and subsequent to this change

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and have concluded no adjustment to the carrying value of goodwill was necessary as a result of this change. In addition, for all reporting units, no qualitative indicators of impairment were identified during the third quarter, and therefore, no interim quantitative goodwill impairment evaluation was performed.

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

(In thousands)	Architectural Framing Systems		Architectural Glass		Architectural Services		Large-Scale Optical		Total
Balance at March 2, 2019	$	148,446	$	25,709	$	1,120	$	10,557	$	185,832
Foreign currency translation	(263)		(53)		—		—		(316)
Balance at February 29, 2020	148,183		25,656		1,120		10,557		185,516
Adjustment (1)	6,315		—		—		—		6,315
Foreign currency translation	1,475		(423)		—		—		1,052
Balance at November 28, 2020	$	155,973	$	25,233	$	1,120	$	10,557	$	192,883
(1) During the quarter ended May 30, 2020, we recorded a $6.3 million increase to goodwill and corresponding increase to deferred tax liabilities to correct an immaterial error related to prior periods. The error was not material to any previously reported annual or interim consolidated financial statements.

Indefinite-lived intangible assets

We hold intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. Similar to the change in goodwill measurement date discussed above, we historically evaluated the reasonableness of the useful life and tested indefinite-lived intangible assets for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. In the third quarter of fiscal 2021, we changed the date of our annual impairment testing from our year-end to the first day in our fiscal fourth quarter.

During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including deteriorating macroeconomic conditions resulting from the COVID-19 pandemic. Therefore, the Company performed a quantitative indefinite-lived intangible asset impairment evaluation as of May 30, 2020. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If an impairment loss is recognized, the adjusted carrying amount becomes the asset's new accounting basis.

Fair value is measured using the relief-from-royalty method. This method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset. This method requires us to estimate the future revenue from the related asset, the appropriate royalty rate, and the weighted average cost of capital. The assessment of fair value involves significant judgment and projections about future performance. In determining the discounted future revenue in our fair value analysis, we used discount rates that are appropriate with the risks and uncertainties inherent in the respective businesses in the range of 10.9 percent to 11.5 percent, royalty rates of 1.5 to 2.0 percent, and a long-term growth rate of 3.0 percent. Based on our analysis, the fair value of each of our trade names exceeded its carrying amount and impairment was not indicated as of May 30, 2020. During the third quarter of fiscal 2021, no additional qualitative indicators of impairment were identified and therefore, no interim quantitative indefinite-lived intangible asset impairment evaluation was completed. We continue to conclude that the useful life of our indefinite-lived intangible assets is appropriate. If future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner, due to COVID-19 or otherwise, impairment could be indicated on one or more of our indefinite-lived intangible assets.

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

(In thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net
November 28, 2020
Definite-lived intangible assets:
Customer relationships	$	119,647	$	(38,333)	$	1,749	$	83,063
Other intangibles	41,293		(33,488)		174		7,979
Total definite-lived intangible assets	160,940		(71,821)		1,923		91,042
Indefinite-lived intangible assets:
Trademarks	45,300		—		501		45,801
Total intangible assets	$	206,240	$	(71,821)	$	2,424	$	136,843
February 29, 2020
Definite-lived intangible assets:
Customer relationships	$	120,239	$	(33,121)	$	(592)	$	86,526
Other intangibles	41,069		(32,516)		(189)		8,364
Total definite-lived intangible assets	161,308		(65,637)		(781)		94,890
Indefinite-lived intangible assets:
Trademarks	45,421		—		(120)		45,301
Total intangible assets	$	206,729	$	(65,637)	$	(901)	$	140,191

Amortization expense on definite-lived intangible assets was $5.6 million and $5.7 million for the nine-month periods ended November 28, 2020 and November 30, 2019, respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At November 28, 2020, the estimated future amortization expense for definite-lived intangible assets was:

(In thousands)	Remainder of Fiscal 2021		Fiscal 2022		Fiscal 2023		Fiscal 2024		Fiscal 2025
Estimated amortization expense	$	1,999	$	7,993	$	7,902	$	7,571	$	7,247

6.Debt

As of November 28, 2020, we had a committed revolving credit facility with maximum borrowings of up to $235 million with a maturity of June 2024 and a $150 million term loan. The term loan was amended during the third quarter of fiscal 2021 to extend the maturity date to June 2024. Total debt outstanding was $168.5 million, compared to $217.9 million as of February 29, 2020. There were no outstanding borrowings under the revolving credit facility as of November 28, 2020, while there were $47.5 million in outstanding borrowings under the revolving credit facility as of February 29, 2020.

Our revolving credit facility and term loan contain two financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of interest expense-to-EBITDA. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. At November 28, 2020, we were in compliance with both financial covenants. Additionally, at November 28, 2020, we had a total of $18.7 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal year 2022 and reduce borrowing capacity under the revolving credit facility.

At November 28, 2020, debt included $15.0 million of industrial revenue bonds that mature in fiscal years 2022 through 2043. In June 2020, a $5.4 million industrial revenue bond matured and was repaid. The fair value of the industrial revenue bonds approximated carrying value at November 28, 2020, due to the variable interest rates on these instruments. All debt would be classified as Level 2 within the fair value hierarchy described in Note 4.

We also maintain two Canadian committed, revolving credit facilities totaling $25.0 million (USD). As of November 28, 2020, $3.5 million was outstanding under the facilities, while at February 29, 2020, there were no borrowings under the facilities.

Interest payments were $3.7 million and $7.3 million for the nine months ended November 28, 2020 and November 30, 2019, respectively.

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7. Leases

We lease certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Currently, all of our lease arrangements are classified as operating leases. We elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and 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. We have made an accounting policy election not to record leases with an original term of 12 months or less on our consolidated balance sheet and such leases are expensed on a straight-line basis over the lease term.

In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term. We have elected the practical expedient to account for lease and non lease components (e.g., common-area maintenance costs) as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We are not a lessor in any transactions.

The components of lease expense were as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Operating lease cost	$	3,477	$	3,445	$	10,329	$	10,308
Short-term lease cost	472		427		1,384		1,606
Variable lease cost	678		843		2,071		2,223
Total lease cost	$	4,627	$	4,715	$	13,784	$	14,137

Other supplemental information related to leases was as follows:

	Nine Months Ended
(In thousands except weighted-average data)	November 28, 2020			November 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	10,233		$	10,335
Lease assets obtained in exchange for new operating lease liabilities	$	19,623		$	15,948
Weighted-average remaining lease term - operating leases	5.8 years			5.9 years
Weighted-average discount rate - operating leases	3.18		%	3.57		%

Future maturities of lease liabilities are as follows:

(In thousands)	November 28, 2020
Remainder of Fiscal 2021	$	3,381
Fiscal 2022	13,866
Fiscal 2023	12,662
Fiscal 2024	10,740
Fiscal 2025	8,994
Fiscal 2026	7,136
Thereafter	10,078
Total lease payments	66,857
Less: Amounts representing interest	(1,637)
Present value of lease liabilities	$	65,220

In September 2020, we sold a building in McCook, IL used within our LSO segment for $25.1 million. The carrying value of the building was $4.3 million, and we recognized a gain on this sale of approximately $19.3 million, net of associated transaction costs, which is included as a reduction of selling, general and administrative expenses within our consolidated

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statements of operations. We also entered into a separate lease agreement for this facility, which was determined to be an operating lease, and we have approximately $8.2 million of future lease payments upon commencement of this lease in September 2020.

8.Commitments and Contingent Liabilities

Bond commitments

In the ordinary course of business, predominantly in our 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. At November 28, 2020, $1.1 billion of these types of bonds were outstanding, of which $527.8 million is in our backlog. These bonds do not have stated expiration dates. We have never been required to make payments under surety or performance bonds with respect to our existing businesses.

Warranty and project-related contingencies

We reserve estimated exposures on known claims, as well as on a portion of anticipated claims, for product warranty and rework cost, based on historical product liability claims as a ratio of sales. Claim costs are deducted from the accrual when paid. Factors that could have an impact on the warranty accrual in any given period include the following: changes in manufacturing quality, changes in product mix and any significant changes in sales volume. A warranty rollforward follows:  

	Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019
Balance at beginning of period	$	15,629	$	16,737
Additional accruals	4,175		5,996
Claims paid	(4,071)		(7,807)
Balance at end of period	$	15,733	$	14,926

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. We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages. The liability for these types of project-related contingencies was $3.3 million and $49.0 million as of November 28, 2020 and February 29, 2020, respectively. In June 2020, we settled contract claims related to a majority of these project-related contingencies on a legacy EFCO project for an amount equal to the recorded contingency at May 30, 2020.

Letters of credit

At November 28, 2020, we had $18.7 million of ongoing letters of credit, all of which have been issued under our committed revolving credit facility, as discussed in Note 6. In connection with the settlement of contract claims related to a legacy EFCO project referenced above, the original project performance and payment bond related to the project was replaced, which required a $25.0 million letter of credit. The letter of credit for the replacement bond was issued outside of our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants.

Purchase obligations

Purchase obligations for raw material commitments and capital expenditures totaled $207.5 million as of November 28, 2020.

New Markets Tax Credit (NMTC) transactions

We have four separate NMTC transactions to support our operational expansion. Proceeds received from investors on these transactions are included within other non-current liabilities on our consolidated balance sheets. The NMTC arrangements are subject to 100 percent tax recapture for a period of seven years from the date of each respective transaction. Therefore, 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. These costs will be recognized in conjunction with the recognition of the related proceeds on each arrangement. During the construction phase, we are required to hold cash dedicated to fund each capital project which is then classified as restricted cash on our consolidated balance sheets. Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics. During the third quarter ended November 28, 2020, an NMTC transaction was settled as expected and as a result, $7.4 million of operating income was recognized as a reduction to selling, general and administrative expenses within the Architectural Glass segment.

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

Inception date	Termination date	Proceeds received		Deferred costs		Net benefit
June 2016	June 2023	$	6.0	$	1.2	$	4.8
August 2018	August 2025	6.6		1.3		5.3
September 2018	September 2025	3.2		1.0		2.2
Total		$	15.8	$	3.5	$	12.3

Litigation

The Company is a party to various legal proceedings incidental to its normal operating activities. In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement. 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.

9.Share-Based Compensation

Total share-based compensation expense included in the results of operations was $6.2 million for the nine-month period ended November 28, 2020 and $4.6 million for the nine-month period ended November 30, 2019.

Stock options and SARs

Stock option and SAR activity for the current nine-month period is summarized as follows:

Stock options and SARs	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at February 29, 2020	100,341	$	8.34
Awards granted	660,600	23.04
Awards exercised	(127,241)	11.45
Outstanding at November 28, 2020	633,700	$	23.04	9.6 years	$	2,889,672
Vested or expected to vest at November 28, 2020	633,700	$	23.04	9.6 years	$	2,889,672

For the nine-months ended November 28, 2020, cash proceeds from the exercise of stock options were $1.5 million and 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. No awards were issued or exercised during the nine-months ended November 30, 2019.

Nonvested shares and share units

Nonvested share activity for the current nine-month period is summarized as follows:

Nonvested shares and units	Number of Shares and Units	Weighted Average Grant Date Fair Value
Nonvested at February 29, 2020	309,259	$	40.58
Granted	342,196	20.46
Vested	(140,953)	39.76
Canceled	(2,059)	34.38
Nonvested at November 28, 2020	508,443	$	27.29

At November 28, 2020, there was $8.6 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 25 months. The total fair value of shares vested during the nine months ended November 28, 2020 was $3.2 million.

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10.Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, Canada, Brazil and other international jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years prior to fiscal 2017, or state and local income tax examinations for years prior to fiscal 2013. The Company is not currently under U.S. federal examination for years subsequent to fiscal year 2016, and there is limited audit activity of the Company’s income tax returns in U.S. state jurisdictions or international jurisdictions.

The total liability for unrecognized tax benefits was $4.3 million and $4.1 million at November 28, 2020 and February 29, 2020, respectively. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. The total liability for unrecognized tax benefits is expected to decrease by approximately $0.4 million during the next 12 months due to lapsing of statutes.

11.Earnings per Share

The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share:

	Three Months Ended		Nine Months Ended
(In thousands)	November 28, 2020	November 30, 2019	November 28, 2020	November 30, 2019
Basic earnings per share – weighted average common shares outstanding	25,883	26,432	26,068	26,481
Weighted average effect of nonvested share grants and assumed exercise of stock options	342	318	282	295
Diluted earnings per share – weighted average common shares and potential common shares outstanding	26,225	26,750	26,350	26,776
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares)	159	152	238	152

12.Segment Information

The Company has four reporting segments: Architectural Framing Systems, Architectural Glass, Architectural Services and LSO.

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

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

•The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings.

•The LSO segment manufactures value-added glass and acrylic products primarily for framing and display applications.

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	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Net sales
Architectural Framing Systems	$	136,688	$	165,517	$	439,779	$	533,432
Architectural Glass	84,779		89,433		248,274		288,862
Architectural Services	76,690		69,043		213,911		195,787
Large-Scale Optical	25,267		24,405		48,438		66,449
Intersegment eliminations	(9,841)		(10,482)		(28,240)		(34,190)
Net sales	$	313,583	$	337,916	$	922,162	$	1,050,340
Operating income (loss)
Architectural Framing Systems	$	7,218	$	6,345	$	26,211	$	34,141
Architectural Glass	10,825		4,092		15,306		16,951
Architectural Services	8,558		6,533		20,470		15,082
Large-Scale Optical(1)	26,114		6,754		25,131		15,561
Corporate and other	(2,965)		(2,130)		(7,685)		(9,525)
Operating income	$	49,750	$	21,594	$	79,433	$	72,210

(1) LSO operating income amounts for the three- and nine-month periods ended November 28, 2020 include a $19.3 million gain on the sale-lease back of a building.

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.

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking statements

This discussion contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current views with respect to future events and financial performance. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” "will," "continue" and similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All forecasts and projections in this document are “forward-looking statements,” and are based on management’s current expectations or beliefs. From time to time, we may also provide oral and written forward-looking statements in other materials we release to the public, such as press releases, presentations to securities analysts or investors, or other communications by the Company. Any or all of our forward-looking statements in this report and in any public statements we make could be materially different from actual results.

Accordingly, we wish to caution investors that any forward-looking statements made by or on behalf of the Company are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. Information about factors that could materially affect our results can be found in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended February 29, 2020 and in subsequent filings with the U.S. Securities and Exchange Commission, including this Quarterly Report on Form 10-Q.

We also wish to caution investors that other factors might in the future prove to be important in affecting the Company’s results of operations. New factors emerge from time to time; it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or a combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

We are a leader in certain technologies involving the design and development of value-added glass and metal products and services for enclosing commercial buildings and framing and displays. Our four reporting segments are: Architectural Framing Systems, Architectural Glass, Architectural Services and Large-Scale Optical (LSO).

The ongoing COVID-19 pandemic continues to cause volatility and uncertainty in global and domestic markets impacting worldwide economic activity. We have experienced some delays in commercial construction projects and orders as a result of COVID-19. In our Architectural Glass and Architectural Framing segments, orders have been delayed or have slowed, as

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customers and end markets face some uncertainty and delays in timing of work. In our Architectural Services segment, some construction site closures or project delays have occurred, and job sites have had to adjust to increased physical distancing and health-related precautions. Within our Large-Scale Optical (LSO) segment, most customers reopened and the segment's two manufacturing locations resumed normal operations during our second fiscal quarter, after being shutdown for most of our first and second quarters due to governmental orders. We have also been impacted by quarantine-related absenteeism among our workforce, resulting in labor and capacity constraints at some of our facilities. The extent to which COVID-19 will continue to impact our business will depend on future developments and public health advancements, which have been buoyed recently by the commencement of vaccine production and distribution.

In response to COVID-19, we have implemented a variety of countermeasures to promote the health and safety of our employees during this pandemic, including health screening, physical distancing practices, enhanced cleaning, use of personal protective equipment, business travel restrictions, and remote work capabilities, in addition to quarantine-related paid leave and other employee assistance programs.

The following selected financial data should be read in conjunction with the Company’s Form 10-K for the year ended February 29, 2020 and the consolidated financial statements, including the notes to consolidated financial statements, included therein.

Highlights of Third Quarter of Fiscal 2021 Compared to Third Quarter of Fiscal 2020

Net sales

Consolidated net sales decreased 7.2 percent, or $24.3 million, and decreased 12.2 percent, or $128.2 million, for the three- and nine-month periods ended November 28, 2020, respectively, compared to the same periods in the prior year, primarily reflecting end market and COVID-19-related volume declines in the Architectural Framing Systems and Architectural Glass segments.

The relationship between various components of operations, as a percentage of net sales, is presented below: 

	Three Months Ended				Nine Months Ended
	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales	77.8		78.0		77.7		77.0
Gross profit	22.2		22.0		22.3		23.0
Selling, general and administrative expenses	6.3		15.6		13.7		16.1
Operating income	15.9		6.4		8.6		6.9
Interest expense, net	0.5		0.6		0.5		0.7
Other income, net	0.2		0.1		0.1		0.1
Earnings before income taxes	15.5		5.9		8.2		6.3
Income tax expense	3.7		1.4		2.0		1.5
Net earnings	11.9	%	4.5	%	6.2	%	4.8	%
Effective tax rate	23.5	%	23.2	%	23.8	%	23.9	%

Gross profit

Gross profit as a percent of sales was 22.2 percent and 22.3 percent for the three- and nine-month periods ended November 28, 2020, compared to 22.0 percent and 23.0 percent for the three- and nine-month periods ended November 30, 2019. The increase in the third quarter of fiscal 2021 compared to the same period in fiscal 2020 was driven by strong project execution in the Architectural Services segment. The decrease in the nine-month period of fiscal 2021 compared to fiscal 2020 was largely driven by lower volumes due to market-related and COVID-19 project delays.

Selling, general and administrative (SG&A) expenses

SG&A expenses as a percent of sales were 6.3 percent and 13.7 percent for the three- and nine-month periods ended November 28, 2020, compared to 15.6 percent and 16.1 percent for the prior year three- and nine-month periods. SG&A decreased as a percent of sales compared to the same periods in the prior year primarily due to a $19.3 million gain on the sale-leaseback of a building and $7.4 million of income related to a New Markets Tax Credit transaction, both of which were recognized in the third quarter of fiscal 2021. In addition, we received a benefit of $4.2 million during the third quarter of fiscal 2021, and $5.5 million year-to-date in fiscal 2021, from a Canadian wage subsidy program offered to support Canadian businesses due to the widespread impacts of the COVID-19 pandemic. In total, these items had a favorable impact on SG&A as a percentage of sales

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of 9.9 percentage points and 3.5 percentage points for the three- and nine-month periods ended November 28, 2020, respectively.

Income tax expense

The effective tax rate in the third quarter of fiscal 2021 was 23.5 percent, compared to 23.2 percent in the same period last year, and 23.8 percent for the first nine months of fiscal 2021, compared to 23.9 percent in the prior year period.

Segment Analysis

Architectural Framing Systems

	Three Months Ended								Nine Months Ended
(In thousands)	November 28, 2020			November 30, 2019			% Change		November 28, 2020			November 30, 2019			% Change
Net sales	$	136,688		$	165,517		(17.4)	%	$	439,779		$	533,432		(17.6)	%
Operating income	7,218			6,345			13.8	%	26,211			34,141			(23.2)	%
Operating margin	5.3		%	3.8		%			6.0		%	6.4		%

Architectural Framing Systems net sales declined $28.8 million, or 17.4 percent, and $93.7 million, or 17.6 percent, for the three- and nine-month periods ended November 28, 2020, compared to the prior-year periods, primarily reflecting market-related and COVID-19 project delays and lower order volume for short lead-time products.

Operating margin increased 150 basis points for the three-month period of the current year and decreased 40 basis points for the nine-month period of the current year, compared to the same periods in the prior year. The increase in the third quarter of fiscal 2021 compared to the third quarter of fiscal 2020 was due to cost actions and improved productivity that served to offset the impact of volume declines from end market softness and COVID-19. The decrease in the nine-month period in the current year compared to the same period in the prior year reflects leverage on the lower revenue, partially offset by cost reduction actions and improved productivity. In addition, this segment benefited from a Canadian wage subsidy of $4.2 million in the third quarter of fiscal 2021 and $5.5 million for the nine-month period of fiscal 2021, as a result of a Canadian program offered to support Canadian businesses due to the widespread impacts of the COVID-19 pandemic.

As of November 28, 2020, segment backlog was approximately $408 million, compared to approximately $404 million at the end of the prior quarter, and $375 million at the end of the third quarter of the prior year. Backlog represents the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which may be expected to be recognized as revenue in the future. Backlog is not a term defined under U.S. GAAP and is not a measure of contract profitability. We view backlog as one indicator of future revenues, particularly in our longer-lead time businesses. In addition to backlog, we have a substantial amount of projects with short lead times that book-and-bill within the same reporting period and are not included in backlog. We have strong visibility beyond backlog, as projects awarded, verbal commitments and bidding activities are not included in backlog.

Architectural Glass

	Three Months Ended								Nine Months Ended
(In thousands)	November 28, 2020			November 30, 2019			% Change		November 28, 2020			November 30, 2019			% Change
Net sales	$	84,779		$	89,433		(5.2)	%	$	248,274		$	288,862		(14.1)	%
Operating income	10,825			4,092			164.5	%	15,306			16,951			(9.7)	%
Operating margin	12.8		%	4.6		%			6.2		%	5.9		%

Net sales decreased $4.7 million, or 5.2 percent, and $40.6 million, or 14.1 percent, for the three- and nine-month periods ended November 28, 2020, compared to the same periods in the prior year. The decreases reflect lower volumes primarily due to market-related and COVID-19 project delays.

Operating margin increased 820 and 30 basis points for the three- and nine-month periods of the current year, compared to the same periods in the prior year. Fiscal 2021 third quarter results included $7.4 million of operating income related to a New Markets Tax Credit transaction. In addition, operating margins in both periods of the current year were impacted by volume declines due to end market softness and COVID-19.

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Architectural Services

	Three Months Ended								Nine Months Ended
(In thousands)	November 28, 2020			November 30, 2019			% Change		November 28, 2020			November 30, 2019			% Change
Net sales	$	76,690		$	69,043		11.1	%	$	213,911		$	195,787		9.3	%
Operating income	8,558			6,533			31.0	%	20,470			15,082			35.7	%
Operating margin	11.2		%	9.5		%			9.6		%	7.7		%

Architectural Services net sales increased $7.6 million, or 11.1 percent, and $18.1 million, or 9.3 percent, for the three- and nine-month periods ended November 28, 2020, compared to the same periods in the prior year, driven by increased volume from executing projects in backlog.

Operating margin increased 170 and 190 basis points for the three- and nine-month periods of the current year, compared to the same periods in the prior year, primarily driven by strong project execution.

As of November 28, 2020, segment backlog was approximately $597 million, compared to approximately $665 million as of the end of the prior quarter, and $607 million at the end of the third quarter of the prior year. Backlog is described within the Architectural Framing Systems discussion above.

Large-Scale Optical (LSO)

	Three Months Ended								Nine Months Ended
(In thousands)	November 28, 2020			November 30, 2019			% Change		November 28, 2020			November 30, 2019			% Change
Net sales	$	25,267		$	24,405		3.5	%	$	48,438		$	66,449		(27.1)	%
Operating income	26,114			6,754			286.6	%	25,131			15,561			61.5	%
Operating margin	103.4		%	27.7		%			51.9		%	23.4		%

LSO net sales increased $0.9 million or 3.5 percent, and decreased $18.0 million, or 27.1 percent, for the three- and nine-month periods ended November 28, 2020, compared to the same periods in the prior year. In the third quarter, customer demand increased significantly following the segment's COVID-related shutdown earlier in the year. The decrease in sales for the current year nine-month period compared to the same period in the prior year reflects the required COVID-related closure of most of the segment’s customers and the segment’s manufacturing locations for most of the first and second quarters of fiscal 2021.

The segment had operating income of $26.1 million and $25.1 million and operating margin of 103.4 percent and 51.9 percent for the three- and nine-month periods ended November 28, 2020, respectively, compared to operating income of $6.8 million and $15.6 million and operating margin of 27.7 percent and 23.4 percent in the same periods in the prior year. The increases for the fiscal 2021 periods are primarily related to a $19.3 million gain on the sale-leaseback of a segment building during the current year third quarter. Additionally, operating margin in the nine-month period reflects the impact of the segment's temporary shutdown and the related impact from lower volume.

Liquidity and Capital Resources

Selected cash flow data	Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019
Operating Activities
Net cash provided by operating activities	$	120,512	$	53,601
Investing Activities
Capital expenditures	(17,116)		(41,176)
Proceeds from sale of property, plant and equipment	23,724		591
Financing Activities
Borrowings on line of credit	193,332		108,000
(Repayment) borrowings on debt	(5,400)		150,000
Payments on line of credit	(237,500)		(252,500)
Repurchase and retirement of common stock	(20,731)		(20,010)
Dividends paid	(14,546)		(13,808)

Operating Activities. Cash provided by operating activities was $120.5 million for the first nine months of fiscal 2021, an increase of $66.9 million compared to the prior-year period, reflecting strong working capital management.

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Investing Activities. Net cash provided by investing activities was $5.5 million for the first nine months of fiscal 2021, driven by proceeds of $23.7 million on the sale-leaseback of a building, offset by capital expenditures of $17.1 million. In the first nine months of the prior year, net cash used by investing activities was $41.4 million, driven by capital expenditures of $41.2 million. Given the uncertain economic environment in fiscal 2021, we will continue to limit our capital spending to all health and safety related investments as well as the most critical high return projects that support our long-term strategic plan and profitable growth targets.

Financing Activities. Net cash used by financing activities was $85.7 million for the first nine months of fiscal 2021, compared to $30.9 million in the prior-year period, primarily due to $47.5 million of net payments in the current year, compared to net borrowings of $5.5 million in the prior-year period. At November 28, 2020, we were in compliance with the financial covenants under our revolving credit facility and term loan.

We paid dividends totaling $14.5 million ($0.5625 per share) in the first nine months of fiscal 2021, compared to $13.8 million ($0.5250 per share) in the comparable prior-year period. During the first nine months of fiscal 2021, we repurchased 852,029 shares under our authorized share repurchase program, for a total cost of $20.7 million. In the first nine months of fiscal 2020, we repurchased 531,997 shares under the share repurchase program, for a total cost of $20.0 million. Since the inception of the share repurchase program in 2004, we have purchased a total of 6,806,941 shares, at a total cost of $195.1 million. We currently have remaining authority to repurchase an additional 1,443,059 shares under this program. We will continue to evaluate making future share repurchases, considering our cash flow, debt levels and market conditions, including the continuing effects of the COVID-19 pandemic, in the context of all our capital allocation options ensuring that we maximize the long-term value for our shareholders.

Other Financing Activities. The following summarizes our significant contractual obligations that impact our liquidity as of November 28, 2020:

	Payments Due by Fiscal Period
(In thousands)	Remainder of Fiscal 2021		Fiscal 2022		Fiscal 2023		Fiscal 2024		Fiscal 2025		Thereafter		Total
Debt obligations	$	—	$	2,000	$	1,000	$	—	$	153,463	$	12,000	$	168,463
Operating leases (undiscounted)	3,381		13,866		12,662		10,740		8,994		17,214		66,857
Purchase obligations	47,263		142,186		14,073		939		770		2,310		207,541
Total cash obligations	$	50,644	$	158,052	$	27,735	$	11,679	$	163,227	$	31,524	$	442,861

We acquire the use of certain assets through operating leases, such as property, manufacturing equipment, vehicles and other equipment. Purchase obligations in the table above relate to raw material commitments and capital expenditures.

We expect to make contributions of $0.7 million to our defined-benefit pension plans in fiscal 2021, which will equal or exceed our minimum funding requirements.

As of November 28, 2020, we had reserves of $4.3 million for unrecognized tax benefits. We expect approximately $0.4 million of the unrecognized tax benefits to lapse during the next 12 months. We are unable to reasonably estimate in which future periods the remaining unrecognized tax benefits will ultimately be settled.

We are required, in the ordinary course of business, to provide surety or performance bonds that commit payments to our customers for any non-performance. At November 28, 2020, $1.1 billion of these types of bonds were outstanding, of which $527.8 million is in our backlog. These bonds do not have stated expiration dates. We have never been required to make payments under surety or performance bonds with respect to our existing businesses.

We are taking advantage of the option to defer remittance of the employer portion of Social Security tax as provided in the Coronavirus, Aid, Relief and Economic Security Act ("CARES Act"), and estimate that this deferral will allow us to retain approximately $13 million in cash during calendar year 2020 that would have otherwise been remitted to the federal government. At the end of the third quarter of fiscal 2021, we had deferred tax payments of $11.8 million, which are included within other non-current liabilities on our consolidated balance sheets. The deferred tax payments will be repaid equally in calendar years 2021 and 2022. The CARES Act, along with other foreign government initiatives, also provides for job retention programs, which have allowed some of our businesses to receive payroll tax credits or subsidies during calendar year 2020.

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Due to our ability to generate strong cash from operations and our borrowing capability under our committed revolving credit facility, we believe that our sources of liquidity will continue to be adequate to fund our working capital requirements, planned capital expenditures and dividend payments for at least the next 12 months.

COVID-19 Consideration. While we believe we have adequate sources of liquidity to continue to fund our business for at least the next 12 months, the extent to which the ongoing COVID-19 pandemic may impact our results of operations or liquidity is uncertain. To date, we have experienced some delays in commercial construction projects and orders due to COVID-19. While the construction and construction-related industries are considered an "essential business or service" in most jurisdictions in which we operate, the uncertain economic environment has resulted in order delays and there have been instances of site closures and project delays. Increased social distancing and health-related precautions are required on many work sites, which have caused and may continue to cause additional project delays and additional costs to be incurred. Within the LSO segment, after being closed for most of the first and second quarters, we resumed normal operations at the segment's two manufacturing locations and most of our customer's retail locations continue to operate after being required to close earlier this year. We expect this global pandemic to continue to have an impact on our revenue and our results of operations, the size and duration of which we are currently unable to predict. At this time, we do not expect that the impact from the coronavirus pandemic will have a significant effect on our liquidity. As demonstrated so far this fiscal year, we have taken steps to increase available cash on hand including, but not limited to, active working capital management and targeted reductions in discretionary operating expenses and capital expenditures. Given the continuously evolving developments with respect to this pandemic, we cannot reasonably estimate the magnitude of the impact to our results of operations, liquidity or financial position. To the extent that our customers and suppliers are adversely impacted by the COVID-19 pandemic, this could reduce the availability, or result in delays, of materials or supplies, or delays in customer payments, which in turn could materially interrupt our business operations, thereby negatively affecting our results of operations, and/or impact our liquidity.

Off-balance sheet arrangements. We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Related Party Transactions

No material changes have occurred in the disclosure with respect to our related party transactions set forth in our Annual Report on Form 10-K for the fiscal year ended February 29, 2020.

Critical Accounting Policies

No material changes have occurred in the disclosure of our critical accounting policies set forth in our Annual Report on Form 10-K for the fiscal year ended February 29, 2020, other than as described in our Current Report on Form 10-Q for the fiscal quarter ended May 30, 2020 and as noted below.

Goodwill and indefinite-lived intangible asset impairment

Goodwill

We have historically evaluated goodwill for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate the carrying value of the goodwill may not be recoverable. In the third quarter of fiscal 2021, we changed the date of our annual goodwill impairment testing from our year-end to the first day in our fiscal fourth quarter. This change results in better alignment of the annual impairment testing with our strategic and annual planning processes. This change was determined to not be material and had no impact on our current or historical consolidated financial statements.

During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including a significant decline in our stock price and market capitalization, along with concerns resulting from the COVID-19 pandemic at four of our nine identified reporting units. Therefore, we performed an interim goodwill impairment evaluation as of May 30, 2020.

Based on the results of the interim quantitative goodwill impairment analysis, the estimated fair value of each reporting unit exceeded its carrying value and, therefore, goodwill impairment was not indicated as of May 30, 2020. However, the estimated fair value did not exceed carrying value by a significant margin at two reporting units within the Architectural Framing Systems segment, EFCO and Sotawall, which had goodwill balances of $90.4 million and $26.7 million, respectively, at May 30, 2020. We utilized a discount rate of 11.0 percent in determining the discounted cash flows for EFCO and a discount rate of 10.4 percent in determining the discounted cash flows for Sotawall. We utilized a long-term growth rate of 3.0 percent in our fair value analysis for all reporting units. If our discount rates were to increase by 100 basis points at Sotawall and EFCO, the fair value of these reporting units would fall below carrying value, which would indicate impairment of the goodwill. Additionally, this discounted cash flow analysis is dependent upon achieving forecasted levels of revenue and profitability. If revenue or profitability were to fall below forecasted levels, or if market conditions were to decline in a material or sustained manner, impairment could be indicated at these reporting units, and potentially at other reporting units.

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During the third quarter, we combined two reporting units into one reporting unit, following certain structural and leadership changes at the Company, specifically within the Architectural Framing Systems segment. Within this segment, as a result of integration efforts that are ongoing, leadership over our Tubelite and Alumicor reporting units has been combined and functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the combined business. The goodwill of these individual reporting units was aggregated to the combined reporting unit. We evaluated goodwill on a qualitative basis prior to and subsequent to this change and have concluded that no adjustment to the carrying value of goodwill was necessary as a result of this change. In addition, no qualitative indicators of impairment were identified during the third quarter, and therefore, no interim quantitative goodwill impairment evaluation was performed.

Indefinite-lived intangible assets

We hold intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. Similar to the change in goodwill measurement date discussed above, we historically evaluated the reasonableness of the useful life and tested indefinite-lived intangible assets for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. In the third quarter of fiscal 2021, we changed the date of our annual impairment testing from our year-end to the first day in our fiscal fourth quarter.

During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including deteriorating macroeconomic conditions resulting from the COVID-19 pandemic. Therefore, the Company performed a quantitative indefinite-lived intangible asset impairment evaluation as of May 30, 2020. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If an impairment loss is recognized, the adjusted carrying amount becomes the asset's new accounting basis.

Fair value is measured using the relief-from-royalty method. This method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset. This method requires us to estimate the future revenue from the related asset, the appropriate royalty rate, and the weighted average cost of capital. The assessment of fair value involves significant judgment and projections about future performance. In determining the discounted future revenue in our fair value analysis, we used discount rates that are appropriate with the risks and uncertainties inherent in the respective businesses in the range of 10.9 percent to 11.5 percent, royalty rates of 1.5 to 2.0 percent, and a long-term growth rate of 3.0 percent. Based on our analysis at May 30, 2020, the fair value of each of our trade names exceeded its carrying amount and impairment was not indicated.

During the third quarter of fiscal 2021, no additional qualitative indicators of impairment were identified and therefore, no interim quantitative indefinite-lived intangible asset impairment evaluation was completed. We continue to conclude that the useful life of our indefinite-lived intangible assets is appropriate. If future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner, due to COVID-19 or otherwise, impairment could be indicated on one or more of our indefinite-lived intangible assets.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

No material changes have occurred to the disclosures of quantitative and qualitative market risk set forth in our Annual Report on Form 10-K for the fiscal year ended February 29, 2020.

Item 4.Controls and Procedures

a)Evaluation of disclosure controls and procedures: As of the end of the period covered by this report (the Evaluation Date), we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in applicable rules and forms, and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

b)Changes in internal controls: There was no change in the Company’s internal control over financial reporting that occurred during the fiscal quarter ended November 28, 2020, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.Legal Proceedings

From time to time, the Company is a party to various legal proceedings incidental to its normal operating activities. In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement. 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.

Item 1A.Risk Factors

There have been no material changes or additions to our risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended February 29, 2020, except as noted below.

The novel coronavirus (COVID-19) pandemic, efforts to mitigate the pandemic, and the related weakening economic conditions, have impacted our business and could have a significant negative impact on our operations, liquidity, financial condition and financial results

In the last quarter of our fiscal 2020, a novel strain of coronavirus, COVID-19, started to impact the global economic environment causing extreme volatility and uncertainty in global markets. In March 2020, the World Health Organization declared COVID-19 to be a global pandemic and we started to see certain impacts to our business. This contagious disease outbreak, which continues to spread, and the related adverse public health developments, and government orders to "stay in place" have adversely affected work forces, economies and financial markets globally. Quarantines and "stay in place" orders, the timing and length of containment and eradication solutions, travel restrictions, absenteeism by infected workers, labor shortages or other disruptions to our supply chain or our customers, have adversely impacted our sales and operating results and have resulted in some project delays. In addition, the pandemic has contributed to an economic downturn that could affect the ability of our customers to obtain financing for projects and therefore impact demand for our products and services. Order lead times have been and could continue to be extended or delayed and our pricing or pricing of suppliers for needed materials could increase. Some materials, products or services critical to our operations may become unavailable if the regional or global spread were significant enough to prevent alternative sourcing.

To date, we have experienced some delays in commercial construction projects and orders due to COVID-19. While the construction and construction-related industries are considered an "essential business or service" in most jurisdictions in which we operate, site closures or project delays have occurred and increased social distancing and health-related precautions are required on many work sites, which may cause additional project delays and additional costs to be incurred. Within the LSO segment, we also experienced the temporary closure of many of our customer's retail locations and we temporarily shut down our factories in this segment to comply with government "stay in place" orders. We may see additional temporary closures, which may lead to a future temporary shutdown of our LSO segment factories. We reopened our factories in the LSO segment during the second half of our second quarter.

This global pandemic has had, and we expect it to continue to have, an impact on our revenue and our results of operations, the size and duration of which we are currently unable to predict. The global outbreak of COVID-19 continues to evolve. The extent to which COVID-19 will impact our business will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate severity and spread of the disease, the duration or future outbreak surges, travel restrictions and social distancing requirements in the United States and other countries, business closures or business disruptions and the effectiveness of actions taken in the United States and other countries to contain and treat the disease.

Given the continuously evolving developments with respect to this pandemic, we cannot reasonably estimate the magnitude of the impact to our results of operations, liquidity or financial position. To the extent that our customers and suppliers are adversely impacted by the coronavirus outbreak, this could reduce the availability, or result in delays, of materials or supplies, or delays in customer payments, which in turn could materially interrupt our business operations, thereby negatively affecting our results of operations, and/or impact our liquidity.

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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information with respect to purchases made by the Company of its own stock during the third quarter of fiscal 2021:

Period	Total Number of Shares Purchased (a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs (b)
August 30, 2020 to September 26, 2020	14,113	$	20.93	—	2,063,596
September 27, 2020 to October 24, 2020	419,388	25.62		412,214	1,651,382
October 25, 2020 to November 28, 2020	208,649	25.74		208,323	1,443,059
Total	642,150	$	25.16	620,537	1,443,059

(a)The shares in this column represent the total number of shares that were repurchased by us pursuant to our publicly announced repurchase program, plus the shares surrendered to us by plan participants to satisfy withholding tax obligations related to share-based compensation.

(b)In fiscal 2004, announced on April 10, 2003, the Board of Directors authorized the repurchase of 1,500,000 shares of Company stock. The Board increased the authorization by 750,000 shares, announced on January 24, 2008; by 1,000,000 shares on each of the announcement dates of October 8, 2008, January 13, 2016, January 9, 2018, and January 14, 2020; and by 2,000,000 shares, announced on October 3, 2018. The repurchase program does not have an expiration date.

Item 6.Exhibits

3.1	Restated Articles of Incorporation. (Incorporated by reference to Exhibit 3.1 to Registrant's Annual Report on Form 10-K for the year-ended February 28, 2004.)
3.2	Articles of Amendment to Restated Articles of Incorporation. (Incorporated by reference to Exhibit 3.1 to Registrant's Current Report on Form 8-K filed on January 16, 2020.)
3.3	Amended and Restated Bylaws of Apogee Enterprises, Inc. (Incorporated by reference to Exhibit 3.1 to Registrant's Current Report on Form 8-K filed on July 3, 2018.)
10.1	Transition Agreement between Apogee Enterprises, Inc. and Joseph F. Puishys, dated September 15, 2020. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on September 17, 2020)
10.2	Amendment No. 2 to Third Amended and Restated Credit Agreement dated as of November 6, 2020, by and among Apogee Enterprises, Inc., as the Borrower, the Lenders referred to therein, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and U.S. Bank National Association, as Syndication Agent and Issuing Lender. (Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on November 10, 2020)
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from Apogee Enterprises, Inc.’s Quarterly Report on Form 10-Q for the quarter ended November 28, 2020, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of November 28, 2020 and February 29, 2020, (ii) the Consolidated Results of Operations for the three- and nine-months ended November 28, 2020 and November 30, 2019, (iii) the Consolidated Statements of Comprehensive Earnings for the three- and nine-months ended November 28, 2020 and November 30, 2019, (iv) the Consolidated Statements of Cash Flows for the nine-months ended November 28, 2020 and November 30, 2019, (v) the Consolidated Statements of Shareholders' Equity for the nine-months ended November 28, 2020 and November 30, 2019, and (vi) Notes to Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101)

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	APOGEE ENTERPRISES, INC.
Date: January 7, 2021	By: /s/ Ty R. Silberhorn
		Ty R. Silberhorn President and Chief Executive Officer (Principal Executive Officer)

Date: January 7, 2021	By: /s/ Nisheet Gupta
		Nisheet Gupta Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

29

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Ty R. Silberhorn, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Apogee Enterprises, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 7, 2021

/s/ Ty R. Silberhorn

Ty R. Silberhorn

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Nisheet Gupta, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Apogee Enterprises, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 7, 2021

/s/ Nisheet Gupta

Nisheet Gupta
Executive Vice President and
Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Apogee Enterprises, Inc. (the “Company”) on Form 10-Q for the period ended November 28, 2020 as filed with the Securities and Exchange Commission (the “Report”), I, Ty R. Silberhorn, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that based on my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 /s/ Ty R. Silberhorn

Ty R. Silberhorn
President and Chief Executive Officer

January 7, 2021

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Apogee Enterprises, Inc. (the “Company”) on Form 10-Q for the period ended November 28, 2020 as filed with the Securities and Exchange Commission (the “Report”), I, Nisheet Gupta, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that based on my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Nisheet Gupta

Nisheet Gupta
Executive Vice President and
Chief Financial Officer

January 7, 2021

XML

Cover Page - shares	9 Months Ended
	Nov. 28, 2020	Jan. 05, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 28, 2020
Document Transition Report	false
Entity File Number	0-6365
Entity Registrant Name	APOGEE ENTERPRISES, INC.
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0919654
Entity Address, Address Line One	4400 West 78th Street, Suite 520
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55435
City Area Code	952
Local Phone Number	835-1874
Title of 12(b) Security	Common stock, par value $0.33 1/3 per share
Trading Symbol	APOG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,007,703
Entity Central Index Key	0000006845
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--02-27

XML

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Current assets
Cash and cash equivalents	$ 55,413	$ 14,952
Receivables, net	172,877	196,806
Inventories	73,815	71,089
Costs and earnings on contracts in excess of billings	29,141	73,582
Other current assets	14,389	25,481
Total current assets	345,635	381,910
Property, plant and equipment, net	302,082	324,386
Operating lease right-of-use assets	62,950	52,892
Goodwill	192,883	185,516
Intangible assets	136,843	140,191
Other non-current assets	45,589	44,096
Total assets	1,085,982	1,128,991
Current liabilities
Accounts payable	69,719	69,056
Accrued payroll and related benefits	40,170	40,119
Billings on contracts in excess of costs and earnings	25,945	32,696
Operating lease liabilities	12,098	11,272
Current portion of debt	2,000	5,400
Other current liabilities	61,768	118,314
Total current liabilities	211,700	276,857
Long-term debt	166,463	212,500
Non-current operating lease liabilities	53,122	43,163
Non-current self-insurance reserves	26,085	22,831
Other non-current liabilities	81,269	56,862
Shareholders' equity
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 25,962,041 and 26,443,166 respectively	8,654	8,814
Additional paid-in capital	155,974	154,016
Retained earnings	414,749	388,010
Common stock held in trust	(183)	(685)
Deferred compensation obligations	183	685
Accumulated other comprehensive loss	(32,034)	(34,062)
Total shareholders’ equity	547,343	516,778
Total liabilities and shareholders’ equity	$ 1,085,982	$ 1,128,991
Common Stock, Par or Stated Value Per Share	$ 0.33	$ 0.33
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares, Outstanding	25,962,041	26,443,166
Common Stock, Shares, Issued	25,962,041	26,443,166

XML

Consolidated Results of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Income Statement [Abstract]
Net sales	$ 313,583	$ 337,916	$ 922,162	$ 1,050,340
Cost of sales	243,998	263,606	716,139	808,856
Gross profit	69,585	74,310	206,023	241,484
Selling, general and administrative expenses	19,835	52,716	126,590	169,274
Operating income	49,750	21,594	79,433	72,210
Interest expense, net	1,502	1,995	4,240	7,176
Other income, net	472	231	684	599
Earnings before income taxes	48,720	19,830	75,877	65,633
Income tax expense	11,447	4,596	18,070	15,677
Net earnings	$ 37,273	$ 15,234	$ 57,807	$ 49,956
Earnings per share - basic
Earnings per share - basic	$ 1.44	$ 0.58	$ 2.22	$ 1.89
Earnings per share - diluted
Earnings per share - diluted	$ 1.42	$ 0.57	$ 2.19	$ 1.87
Weighted average basic shares outstanding	25,883	26,432	26,068	26,481
Weighted average diluted shares outstanding	26,225	26,750	26,350	26,776

XML

Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 37,273	$ 15,234	$ 57,807	$ 49,956
Other comprehensive earnings (loss):
Unrealized (loss) gain on marketable securities, net of $—, $(11), $39 and $38 of tax (benefit) expense, respectively	(2)	(44)	145	145
Unrealized gain on derivative instruments, net of $90, $119, $305 and $146 of tax expense, respectively	294	387	997	476
Foreign currency translation adjustments	899	(491)	887	(586)
Other comprehensive earnings (loss)	1,191	(148)	2,029	35
Total comprehensive earnings	38,464	15,086	59,836	49,991
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax	0	(11)	39	38
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	$ 90	$ 119	$ 305	$ 146

XML

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019
Operating Activities
Net earnings	$ 57,807	$ 49,956
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	38,000	34,681
Share-based compensation	6,163	4,617
Deferred income taxes	5,012	10,088
Gain on disposal of assets	(19,346)	(623)
Noncash lease expense	9,531	8,993
Other, net	(69)	(2,007)
Changes in operating assets and liabilities:
Receivables	24,153	(5,288)
Inventories	(2,722)	2,474
Costs and earnings on contracts in excess of billings	(44,501)	17,156
Accounts payable and accrued expenses	(43,915)	(22,457)
Billings on contracts in excess of costs and earnings	(6,981)	4,901
Refundable and accrued income taxes	12,424	(6,159)
Operating lease liability	(9,168)	(7,468)
Other	5,122	(951)
Net cash provided by operating activities	120,512	53,601
Investing Activities
Capital expenditures	(17,116)	(41,176)
Proceeds from sales of property, plant and equipment	23,724	591
Other	(1,090)	(857)
Net cash provided (used) by investing activities	5,518	(41,442)
Financing Activities
Borrowings on line of credit	193,332	108,000
(Repayment) borrowings on debt	(5,400)	150,000
Payments on line of credit	237,500	252,500
Repurchase and retirement of common stock	20,731	20,010
Dividends paid	(14,546)	(13,808)
Other	(853)	(2,584)
Net cash used by financing activities	(85,698)	(30,902)
Increase (decrease) in cash and cash equivalents	40,332	(18,743)
Effect of exchange rates on cash	129	32
Cash, cash equivalents and restricted cash at beginning of year	14,952	29,241
Cash, cash equivalents and restricted cash at end of period	55,413	10,530
Noncash Activity
Capital expenditures in accounts payable	$ 684	$ 1,205

XML

Consolidated Statement of Shareholders Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Common Stock Held In Trust [Member]	Deferred Compensation Obligation [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance (in shares) at Mar. 02, 2019	27,015
Beginning balance at Mar. 02, 2019	$ 496,317	$ 9,005	$ 151,842	$ 367,597	$ (755)	$ 755	$ (32,127)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	15,443			15,443
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	181						181
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	5						5
Foreign currency translation adjustments	$ (2,560)						(2,560)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	79
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 40	26	14		(12)	12
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 1,618		1,618
Share repurchases (in shares)	(532)
Share repurchases	$ (20,010)	(177)	(3,051)	(16,782)
Stock Repurchased and Retired During Period, Shares	(32)
Stock Repurchased and Retired During Period, Value	$ (1,460)	(11)	(183)	(1,266)
Dividends, Common Stock, Cash	$ (4,598)			(4,598)
Ending balance (in shares) at Jun. 01, 2019	26,530
Ending balance at Jun. 01, 2019	$ 484,976	8,843	150,240	360,394	(767)	767	(34,501)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	47
Tax expense (benefit) on foreign currency hedge	$ 2
Beginning balance (in shares) at Mar. 02, 2019	27,015
Beginning balance at Mar. 02, 2019	$ 496,317	9,005	151,842	367,597	(755)	755	(32,127)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	49,956
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	145
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	$ 476
Ending balance (in shares) at Nov. 30, 2019	26,553
Ending balance at Nov. 30, 2019	$ 514,979	8,851	153,188	385,032	(675)	675	(32,092)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	38
Tax expense (benefit) on foreign currency hedge	$ 146
Beginning balance (in shares) at Jun. 01, 2019	26,530
Beginning balance at Jun. 01, 2019	$ 484,976	8,843	150,240	360,394	(767)	767	(34,501)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	19,279			19,279
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	8						8
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	84						84
Foreign currency translation adjustments	$ 2,465						2,465
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	44
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 42	15	27		(11)	11
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 1,582		1,582
Stock Repurchased and Retired During Period, Shares	(20)
Stock Repurchased and Retired During Period, Value	$ 750	7	114	629
Dividends, Common Stock, Cash	$ (4,605)			(4,605)
Ending balance (in shares) at Aug. 31, 2019	26,554
Ending balance at Aug. 31, 2019	$ 503,081	8,851	151,735	374,439	(778)	778	(31,944)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	2
Tax expense (benefit) on foreign currency hedge	25
Net earnings	15,234			15,234
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	(44)						(44)
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	387						387
Foreign currency translation adjustments	$ (491)						(491)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	(1)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 44	1	43		103	(103)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 1,417		1,417
Share repurchases (in shares)	0
Stock Repurchased and Retired During Period, Value	$ 44	1	7	36
Dividends, Common Stock, Cash	$ (4,605)			(4,605)
Ending balance (in shares) at Nov. 30, 2019	26,553
Ending balance at Nov. 30, 2019	$ 514,979	8,851	153,188	385,032	(675)	675	(32,092)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	(11)
Tax expense (benefit) on foreign currency hedge	$ 119
Beginning balance (in shares) at Feb. 29, 2020	26,443
Beginning balance at Feb. 29, 2020	$ 516,778	8,814	154,016	388,010	(685)	685	(34,062)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	2,876			2,876
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	97						97
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	(617)						(617)
Foreign currency translation adjustments	$ (6,151)						(6,151)
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	183
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 23	62	(39)		(11)	11
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 1,406		1,406
Share repurchases (in shares)	(231)
Share repurchases	$ (4,731)	(77)	(1,370)	(3,284)
Stock Repurchased and Retired During Period, Shares	(26)
Stock Repurchased and Retired During Period, Value	$ (665)	(9)	(151)	(505)
Dividends, Common Stock, Cash	$ (4,872)			(4,872)
Ending balance (in shares) at May. 30, 2020	26,369
Ending balance at May. 30, 2020	$ 504,144	8,790	153,862	382,225	(696)	696	(40,733)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	26
Tax expense (benefit) on foreign currency hedge	$ (189)
Beginning balance (in shares) at Feb. 29, 2020	26,443
Beginning balance at Feb. 29, 2020	$ 516,778	8,814	154,016	388,010	(685)	685	(34,062)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	57,807
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	145
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	$ 997
Ending balance (in shares) at Nov. 28, 2020	25,962
Ending balance at Nov. 28, 2020	$ 547,343	8,654	155,974	414,749	(183)	183	(32,034)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	39
Tax expense (benefit) on foreign currency hedge	$ 305
Beginning balance (in shares) at May. 30, 2020	26,369
Beginning balance at May. 30, 2020	$ 504,144	8,790	153,862	382,225	(696)	696	(40,733)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings	17,658			17,658
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	50						50
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	1,319						1,319
Foreign currency translation adjustments	$ 6,139						6,139
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	121
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 18	41	(23)		(11)	11
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 2,256		2,256
Stock Repurchased and Retired During Period, Shares	(23)
Stock Repurchased and Retired During Period, Value	$ 537	8	139	390
Dividends, Common Stock, Cash	$ (4,879)			(4,879)
Ending balance (in shares) at Aug. 29, 2020	26,467
Ending balance at Aug. 29, 2020	$ 526,168	8,823	155,956	394,614	(707)	707	(33,225)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	13
Tax expense (benefit) on foreign currency hedge	404
Net earnings	37,273			37,273
Unrealized gain (loss) on marketable securities, net of tax expense (benefit)	(2)						(2)
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit)	294						294
Foreign currency translation adjustments	$ 899						899
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	10
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ 18	3	15		524	(524)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	$ 2,501		2,501
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	127
Stock Issued During Period, Value, Stock Options Exercised	$ 1,456	42	1,414
Share repurchases (in shares)	(620)
Share repurchases	$ (16,000)	(207)	(3,781)	(12,012)
Stock Repurchased and Retired During Period, Shares	(22)
Stock Repurchased and Retired During Period, Value	$ 469	7	131	331
Dividends, Common Stock, Cash	$ (4,795)			(4,795)
Ending balance (in shares) at Nov. 28, 2020	25,962
Ending balance at Nov. 28, 2020	$ 547,343	$ 8,654	$ 155,974	$ 414,749	$ (183)	$ 183	$ (32,034)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax expense (benefit) on marketable securities	0
Tax expense (benefit) on foreign currency hedge	$ 90

XML

Income Taxes

9 Months Ended

Nov. 28, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, Canada, Brazil and other international jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years prior to fiscal 2017, or state and local income tax examinations for years prior to fiscal 2013. The Company is not currently under U.S. federal examination for years subsequent to fiscal year 2016, and there is limited audit activity of the Company’s income tax returns in U.S. state jurisdictions or international jurisdictions.

The total liability for unrecognized tax benefits was $4.3 million and $4.1 million at November 28, 2020 and February 29, 2020, respectively. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. The total liability for unrecognized tax benefits is expected to decrease by approximately $0.4 million during the next 12 months due to lapsing of statutes.

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Income Taxes (Details) - USD ($) $ in Millions	Nov. 28, 2020	Feb. 29, 2020
Income Tax Disclosure [Abstract]
Liability for uncertain tax positions, current and noncurrent	$ 4.3	$ 4.1
Liability for unrecognized tax benefit, expected decrease	$ 0.4

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Summary of Significant Accounting Policies

9 Months Ended

Nov. 28, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of presentation

The consolidated financial statements of Apogee Enterprises, Inc. (we, us, our or the Company) have been prepared in accordance with accounting principles generally accepted in the United States. The information included in this Form 10-Q should be read in conjunction with the Company’s Form 10-K for the year ended February 29, 2020. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly and year to date operating results are reflected herein and are of a normal, recurring nature. The results of operations for the three- and nine-month periods ended November 28, 2020 are not necessarily indicative of the results to be expected for the full year.

COVID-19 considerations

The ongoing COVID-19 pandemic continues to cause volatility and uncertainty in global markets impacting worldwide economic activity. We have experienced some delays in commercial construction projects and orders as a result of COVID-19. In our Architectural Glass and Architectural Framing segments, orders have been delayed or have slowed, as customers and end markets face some uncertainty and delays in timing of work. In our Architectural Services segment, some construction site closures or project delays have occurred, and job sites have had to adjust to increased physical distancing and health-related precautions. Within our Large-Scale Optical (LSO) segment, most customers reopened and the segment's two manufacturing locations resumed normal operations during the latter part of the second quarter, after being shutdown for most of the first and second quarters due to governmental orders. We have also been impacted by quarantine-related absenteeism among our workforce, resulting in labor and capacity constraints at some of our facilities. The extent to which COVID-19 will continue to impact our business will depend on future developments and public health advancements, which have been buoyed recently by the commencement of vaccine production and distribution.

In response to COVID-19, we have implemented a variety of countermeasures to promote the health and safety of our employees during this pandemic, including health screening, physical distancing practices, enhanced cleaning, use of personal protective equipment, business travel restrictions, and remote work capabilities, in addition to quarantine-related paid leave and other employee assistance programs.

Adoption of new accounting standards

At the beginning of fiscal 2021, we adopted the guidance in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for a new impairment model on financial instruments which is based on expected credit losses, which was applied following a modified retrospective approach. Additionally, the new guidance makes targeted improvements to the impairment model for certain available-for-sale debt securities, including eliminating the concept of "other than temporary" from that model. The portion of the guidance related to available-for-sale debt securities was adopted following a prospective approach. The adoption of this ASU did not have a significant impact on earnings or financial condition. Refer to additional disclosures in Notes 2 and 4.

Subsequent events

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing. Subsequent to the end of the quarter, we announced the election of our new Chief Executive Officer, Ty R. Silberhorn, and entered into an employment agreement with him, effective January 4, 2021. Mr. Silberhorn replaces, Joseph F. Puishys, who announced his retirement, as an employee of the Company, in September 2020, effective January 4, 2021.

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Revenue, Receivables and Contract Assets and Liabilities

9 Months Ended

Nov. 28, 2020

Revenue from Contract with Customer [Abstract]

Revenue, Receivables and Contract Assets and Liabilities

Revenue, Receivables and Contract Assets and Liabilities

Revenue

The following table disaggregates total revenue by timing of recognition (see Note 12 for disclosure of revenue by segment):

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Recognized at shipment	$	129,132	$	153,093	$	379,292	$	472,695
Recognized over time	184,451		184,823		542,870		577,645
Total	$	313,583	$	337,916	$	922,162	$	1,050,340

Receivables

Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Upon billing, aging of receivables is monitored until collection. An account is considered current when it is within agreed upon payment terms. 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)	November 28, 2020		February 29, 2020
Trade accounts	$	122,959	$	141,126
Construction contracts	9,727		20,808
Contract retainage	42,053		37,341
Total receivables	174,739		199,275
Less: allowance for credit losses	(1,862)		(2,469)
Net receivables	$	172,877	$	196,806

The following table summarizes the activity in the allowance for credit losses:

(In thousands)	November 28, 2020
Beginning balance	$	2,469
Additions charged to costs and expenses	325
Deductions from allowance, net of recoveries	(884)
Other changes (1)	(48)
Ending balance	$	1,862
(1) Result of foreign currency effects

Contract assets and liabilities

Contract assets consist of retainage, costs and earnings in excess of billings and other unbilled amounts typically generated when revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on contracts. Retainage is classified within receivables and deferred revenue is classified within other current liabilities on our consolidated balance sheets.

The time period between when performance obligations are complete and when payment is due is not significant. In certain of our businesses that recognize revenue over time, progress billings follow an agreed-upon schedule of values, and retainage is withheld by the customer until the project reaches a level of completion where amounts are released.

(In thousands)	November 28, 2020		February 29, 2020
Contract assets	$	71,194	$	110,923
Contract liabilities	27,965		35,954

The decrease in contract assets was mainly due to a reduction in costs and earnings in excess of billings, which is driven by the settlement of matters related to a legacy EFCO project, as well as the timing of projects. The change in contract liabilities was due to timing of project activity within our businesses that operate under long-term contracts.

Other contract-related disclosures	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Revenue recognized related to contract liabilities from prior year-end	$	2,044	$	4,589	$	16,239	$	22,044
Revenue recognized related to prior satisfaction of performance obligations	4,016		1,776		10,545		5,298

Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that timeframe. Generally, these contracts are in our businesses with long-term contracts which recognize revenue over time. As of November 28, 2020, the transaction price associated with unsatisfied performance obligations was approximately $901.6

million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	November 28, 2020
Within one year	$	498,623
Within two years	331,219
Beyond	71,786
Total	$	901,628

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Supplemental Balance Sheet Information

9 Months Ended

Nov. 28, 2020

Inventory Disclosure [Abstract]

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

Inventories

(In thousands)	November 28, 2020		February 29, 2020
Raw materials	$	43,292	$	36,611
Work-in-process	16,337		17,520
Finished goods	14,186		16,958
Total inventories	$	73,815	$	71,089

Other current liabilities

(In thousands)	November 28, 2020		February 29, 2020
Warranties	$	13,281	$	12,822
Accrued project losses	3,297		48,962
Property and other taxes	13,078		5,952
Accrued self-insurance reserves	9,912		8,307
Other	22,200		42,271
Total other current liabilities	$	61,768	$	118,314

Other non-current liabilities

(In thousands)	November 28, 2020		February 29, 2020
Deferred benefit from New Market Tax Credit transactions	$	15,717	$	15,717
Retirement plan obligations	8,138		8,294
Deferred compensation plan	8,437		8,452
Deferred tax liabilities	20,014		7,940
Other	28,963		16,459
Total other non-current liabilities	$	81,269	$	56,862

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Financial Instruments

9 Months Ended

Nov. 28, 2020

Marketable Securities [Abstract]

Financial Instruments

Financial Instruments

Marketable securities

Through our wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), we hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: 

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
November 28, 2020	$	12,556	$	459	$	—	$	13,015
February 29, 2020	11,692		275		—		11,967

Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments for the purpose of providing collateral for Prism’s obligations under the reinsurance agreements.

The amortized cost and estimated fair values of these bonds at November 28, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty.

(In thousands)	Amortized Cost		Estimated Fair Value
Due within one year	$	771	$	779
Due after one year through five years	7,682		7,978
Due after five years through 10 years	3,303		3,428
Due beyond 15 years	800		830
Total	$	12,556	$	13,015

Derivative instruments

In August 2019, we entered into an interest rate swap to hedge exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. As of November 28, 2020, the interest rate swap contract had a notional value of $55 million.

We periodically enter into forward purchase foreign currency cash flow hedge contracts and forward purchase aluminum hedge contracts, generally with an original maturity date of less than one year, to hedge foreign currency exchange rate risk and future purchases of aluminum in certain of our architectural businesses. As of November 28, 2020, we held foreign exchange forward contracts and aluminum forward contracts with U.S. dollar notional values of $18.7 million and $1.9 million, respectively, with the objective of reducing the exposure to fluctuations in the Canadian dollar, the Euro and the price of aluminum.

These derivative instruments are recorded within our consolidated balance sheets within other current assets and liabilities. Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive income.

Fair value measurements

Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). We do not have any Level 3 financial assets or liabilities.

(In thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Total Fair Value
November 28, 2020
Assets:
Money market funds	$	27,000	$	—	$	27,000
Commercial paper	—		4,300		4,300
Municipal and corporate bonds	—		13,015		13,015
Cash surrender value of life insurance	—		17,704		17,704
Foreign currency and aluminum forward/option contracts	—		896		896
Liabilities:
Deferred compensation	—		14,027		14,027
Interest rate swap contract	—		676		676
February 29, 2020
Assets:
Money market funds	$	2,689	$	—	$	2,689
Commercial paper	—		1,500		1,500
Municipal and corporate bonds	—		11,967		11,967
Cash surrender value of life insurance	—		16,560		16,560
Liabilities:
Deferred compensation	—		14,042		14,042
Foreign currency forward/option contract	—		340		340
Interest rate swap contract	—		561		561

Money market funds and commercial paper

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.

Cash surrender value of life insurance and deferred compensation

Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. Changes in cash surrender value are recorded in other expense. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds.

Derivative instruments

The interest rate swap is measured at fair value using other observable market inputs, based off of 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. Industry standard data providers are our primary source for forward and spot rate information for both interest and currency rates and aluminum prices.

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Goodwill and Other Identifiable Intangible Assets

9 Months Ended

Nov. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

Goodwill and Other Identifiable Intangible Assets

Goodwill

Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that the carrying value of a reporting unit may not be recoverable. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by management on a regular basis.

In the third quarter of fiscal 2021, we changed the date of our annual goodwill impairment testing from our year-end to the first day in our fiscal fourth quarter. This change results in better alignment of the annual impairment testing with our strategic and annual planning processes. This change was determined to not be material and had no impact on our current or historical consolidated financial statements.

During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including a significant decline in our stock price and market capitalization, along with concerns resulting from the COVID-19 pandemic at four of our nine identified reporting units. Therefore, we performed an interim goodwill impairment evaluation as of May 30, 2020. Based on the results of the interim quantitative goodwill impairment analysis, the estimated fair value of each reporting unit exceeded its carrying value and, therefore, goodwill impairment was not indicated as of May 30, 2020. However, the estimated fair value did not exceed carrying value by a significant margin at two reporting units within the Architectural Framing Systems segment, EFCO and Sotawall, which had goodwill balances of $90.4 million and $26.7 million, respectively, at May 30, 2020. We utilized a discount rate of 11.0 percent in determining the discounted cash flows for EFCO and a discount rate of 10.4 percent in determining the discounted cash flows for Sotawall. We utilized a long-term growth rate of 3.0 percent in our fair value analysis for all reporting units. If our discount rates were to increase by 100 basis points at Sotawall and EFCO, the fair value of these reporting units would fall below carrying value, which would indicate impairment of the goodwill. Additionally, this discounted cash flow analysis is dependent upon achieving forecasted levels of revenue and profitability. If revenue or profitability were to fall below forecasted levels, or if market conditions were to decline in a material or sustained manner, impairment could be indicated at these reporting units, and potentially at other reporting units.

During the third quarter, we combined two reporting units into one reporting unit, following certain structural and leadership changes at the Company, specifically within the Architectural Framing Systems segment. Within this segment, as a result of integration efforts that are ongoing, leadership over our Tubelite and Alumicor reporting units have been combined and functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the combined business. The goodwill of these individual reporting units was aggregated to the combined reporting unit. We evaluated goodwill on a qualitative basis prior to and subsequent to this change

and have concluded no adjustment to the carrying value of goodwill was necessary as a result of this change. In addition, for all reporting units, no qualitative indicators of impairment were identified during the third quarter, and therefore, no interim quantitative goodwill impairment evaluation was performed.

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

(In thousands)	Architectural Framing Systems		Architectural Glass		Architectural Services		Large-Scale Optical		Total
Balance at March 2, 2019	$	148,446	$	25,709	$	1,120	$	10,557	$	185,832
Foreign currency translation	(263)		(53)		—		—		(316)
Balance at February 29, 2020	148,183		25,656		1,120		10,557		185,516
Adjustment (1)	6,315		—		—		—		6,315
Foreign currency translation	1,475		(423)		—		—		1,052
Balance at November 28, 2020	$	155,973	$	25,233	$	1,120	$	10,557	$	192,883
(1) During the quarter ended May 30, 2020, we recorded a $6.3 million increase to goodwill and corresponding increase to deferred tax liabilities to correct an immaterial error related to prior periods. The error was not material to any previously reported annual or interim consolidated financial statements.

Indefinite-lived intangible assets

We hold intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. Similar to the change in goodwill measurement date discussed above, we historically evaluated the reasonableness of the useful life and tested indefinite-lived intangible assets for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. In the third quarter of fiscal 2021, we changed the date of our annual impairment testing from our year-end to the first day in our fiscal fourth quarter.

During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including deteriorating macroeconomic conditions resulting from the COVID-19 pandemic. Therefore, the Company performed a quantitative indefinite-lived intangible asset impairment evaluation as of May 30, 2020. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If an impairment loss is recognized, the adjusted carrying amount becomes the asset's new accounting basis.

Fair value is measured using the relief-from-royalty method. This method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset. This method requires us to estimate the future revenue from the related asset, the appropriate royalty rate, and the weighted average cost of capital. The assessment of fair value involves significant judgment and projections about future performance. In determining the discounted future revenue in our fair value analysis, we used discount rates that are appropriate with the risks and uncertainties inherent in the respective businesses in the range of 10.9 percent to 11.5 percent, royalty rates of 1.5 to 2.0 percent, and a long-term growth rate of 3.0 percent. Based on our analysis, the fair value of each of our trade names exceeded its carrying amount and impairment was not indicated as of May 30, 2020. During the third quarter of fiscal 2021, no additional qualitative indicators of impairment were identified and therefore, no interim quantitative indefinite-lived intangible asset impairment evaluation was completed. We continue to conclude that the useful life of our indefinite-lived intangible assets is appropriate. If future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner, due to COVID-19 or otherwise, impairment could be indicated on one or more of our indefinite-lived intangible assets.

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

(In thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net
November 28, 2020
Definite-lived intangible assets:
Customer relationships	$	119,647	$	(38,333)	$	1,749	$	83,063
Other intangibles	41,293		(33,488)		174		7,979
Total definite-lived intangible assets	160,940		(71,821)		1,923		91,042
Indefinite-lived intangible assets:
Trademarks	45,300		—		501		45,801
Total intangible assets	$	206,240	$	(71,821)	$	2,424	$	136,843
February 29, 2020
Definite-lived intangible assets:
Customer relationships	$	120,239	$	(33,121)	$	(592)	$	86,526
Other intangibles	41,069		(32,516)		(189)		8,364
Total definite-lived intangible assets	161,308		(65,637)		(781)		94,890
Indefinite-lived intangible assets:
Trademarks	45,421		—		(120)		45,301
Total intangible assets	$	206,729	$	(65,637)	$	(901)	$	140,191

Amortization expense on definite-lived intangible assets was $5.6 million and $5.7 million for the nine-month periods ended November 28, 2020 and November 30, 2019, respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At November 28, 2020, the estimated future amortization expense for definite-lived intangible assets was:

(In thousands)	Remainder of Fiscal 2021		Fiscal 2022		Fiscal 2023		Fiscal 2024		Fiscal 2025
Estimated amortization expense	$	1,999	$	7,993	$	7,902	$	7,571	$	7,247

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Debt

9 Months Ended

Nov. 28, 2020

Debt Disclosure [Abstract]

Debt

Debt

As of November 28, 2020, we had a committed revolving credit facility with maximum borrowings of up to $235 million with a maturity of June 2024 and a $150 million term loan. The term loan was amended during the third quarter of fiscal 2021 to extend the maturity date to June 2024. Total debt outstanding was $168.5 million, compared to $217.9 million as of February 29, 2020. There were no outstanding borrowings under the revolving credit facility as of November 28, 2020, while there were $47.5 million in outstanding borrowings under the revolving credit facility as of February 29, 2020.

Our revolving credit facility and term loan contain two financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of interest expense-to-EBITDA. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. At November 28, 2020, we were in compliance with both financial covenants. Additionally, at November 28, 2020, we had a total of $18.7 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal year 2022 and reduce borrowing capacity under the revolving credit facility.

At November 28, 2020, debt included $15.0 million of industrial revenue bonds that mature in fiscal years 2022 through 2043. In June 2020, a $5.4 million industrial revenue bond matured and was repaid. The fair value of the industrial revenue bonds approximated carrying value at November 28, 2020, due to the variable interest rates on these instruments. All debt would be classified as Level 2 within the fair value hierarchy described in Note 4.

We also maintain two Canadian committed, revolving credit facilities totaling $25.0 million (USD). As of November 28, 2020, $3.5 million was outstanding under the facilities, while at February 29, 2020, there were no borrowings under the facilities.

Interest payments were $3.7 million and $7.3 million for the nine months ended November 28, 2020 and November 30, 2019, respectively.

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Leases Leases

9 Months Ended

Nov. 28, 2020

Leases [Abstract]

Leases

7. Leases

We lease certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Currently, all of our lease arrangements are classified as operating leases. We elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and 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. We have made an accounting policy election not to record leases with an original term of 12 months or less on our consolidated balance sheet and such leases are expensed on a straight-line basis over the lease term.

In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term. We have elected the practical expedient to account for lease and non lease components (e.g., common-area maintenance costs) as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We are not a lessor in any transactions.

The components of lease expense were as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Operating lease cost	$	3,477	$	3,445	$	10,329	$	10,308
Short-term lease cost	472		427		1,384		1,606
Variable lease cost	678		843		2,071		2,223
Total lease cost	$	4,627	$	4,715	$	13,784	$	14,137

Other supplemental information related to leases was as follows:

	Nine Months Ended
(In thousands except weighted-average data)	November 28, 2020			November 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	10,233		$	10,335
Lease assets obtained in exchange for new operating lease liabilities	$	19,623		$	15,948
Weighted-average remaining lease term - operating leases	5.8 years			5.9 years
Weighted-average discount rate - operating leases	3.18		%	3.57		%

Future maturities of lease liabilities are as follows:

(In thousands)	November 28, 2020
Remainder of Fiscal 2021	$	3,381
Fiscal 2022	13,866
Fiscal 2023	12,662
Fiscal 2024	10,740
Fiscal 2025	8,994
Fiscal 2026	7,136
Thereafter	10,078
Total lease payments	66,857
Less: Amounts representing interest	(1,637)
Present value of lease liabilities	$	65,220

In September 2020, we sold a building in McCook, IL used within our LSO segment for $25.1 million. The carrying value of the building was $4.3 million, and we recognized a gain on this sale of approximately $19.3 million, net of associated transaction costs, which is included as a reduction of selling, general and administrative expenses within our consolidated

statements of operations. We also entered into a separate lease agreement for this facility, which was determined to be an operating lease, and we have approximately $8.2 million of future lease payments upon commencement of this lease in September 2020.

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Commitments and Contingent Liabilities

9 Months Ended

Nov. 28, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

Bond commitments

In the ordinary course of business, predominantly in our 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. At November 28, 2020, $1.1 billion of these types of bonds were outstanding, of which $527.8 million is in our backlog. These bonds do not have stated expiration dates. We have never been required to make payments under surety or performance bonds with respect to our existing businesses.

Warranty and project-related contingencies

We reserve estimated exposures on known claims, as well as on a portion of anticipated claims, for product warranty and rework cost, based on historical product liability claims as a ratio of sales. Claim costs are deducted from the accrual when paid. Factors that could have an impact on the warranty accrual in any given period include the following: changes in manufacturing quality, changes in product mix and any significant changes in sales volume. A warranty rollforward follows:  

	Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019
Balance at beginning of period	$	15,629	$	16,737
Additional accruals	4,175		5,996
Claims paid	(4,071)		(7,807)
Balance at end of period	$	15,733	$	14,926

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. We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages. The liability for these types of project-related contingencies was $3.3 million and $49.0 million as of November 28, 2020 and February 29, 2020, respectively. In June 2020, we settled contract claims related to a majority of these project-related contingencies on a legacy EFCO project for an amount equal to the recorded contingency at May 30, 2020.

Letters of credit

At November 28, 2020, we had $18.7 million of ongoing letters of credit, all of which have been issued under our committed revolving credit facility, as discussed in Note 6. In connection with the settlement of contract claims related to a legacy EFCO project referenced above, the original project performance and payment bond related to the project was replaced, which required a $25.0 million letter of credit. The letter of credit for the replacement bond was issued outside of our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants.

Purchase obligations

Purchase obligations for raw material commitments and capital expenditures totaled $207.5 million as of November 28, 2020.

New Markets Tax Credit (NMTC) transactions

We have four separate NMTC transactions to support our operational expansion. Proceeds received from investors on these transactions are included within other non-current liabilities on our consolidated balance sheets. The NMTC arrangements are subject to 100 percent tax recapture for a period of seven years from the date of each respective transaction. Therefore, 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. These costs will be recognized in conjunction with the recognition of the related proceeds on each arrangement. During the construction phase, we are required to hold cash dedicated to fund each capital project which is then classified as restricted cash on our consolidated balance sheets. Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics. During the third quarter ended November 28, 2020, an NMTC transaction was settled as expected and as a result, $7.4 million of operating income was recognized as a reduction to selling, general and administrative expenses within the Architectural Glass segment.

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

Inception date	Termination date	Proceeds received		Deferred costs		Net benefit
June 2016	June 2023	$	6.0	$	1.2	$	4.8
August 2018	August 2025	6.6		1.3		5.3
September 2018	September 2025	3.2		1.0		2.2
Total		$	15.8	$	3.5	$	12.3

Litigation

The Company is a party to various legal proceedings incidental to its normal operating activities. In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement. 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.

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Share-Based Compensation

9 Months Ended

Nov. 28, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

Total share-based compensation expense included in the results of operations was $6.2 million for the nine-month period ended November 28, 2020 and $4.6 million for the nine-month period ended November 30, 2019.

Stock options and SARs

Stock option and SAR activity for the current nine-month period is summarized as follows:

Stock options and SARs	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at February 29, 2020	100,341	$	8.34
Awards granted	660,600	23.04
Awards exercised	(127,241)	11.45
Outstanding at November 28, 2020	633,700	$	23.04	9.6 years	$	2,889,672
Vested or expected to vest at November 28, 2020	633,700	$	23.04	9.6 years	$	2,889,672

For the nine-months ended November 28, 2020, cash proceeds from the exercise of stock options were $1.5 million and 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. No awards were issued or exercised during the nine-months ended November 30, 2019.

Nonvested shares and share units

Nonvested share activity for the current nine-month period is summarized as follows:

Nonvested shares and units	Number of Shares and Units	Weighted Average Grant Date Fair Value
Nonvested at February 29, 2020	309,259	$	40.58
Granted	342,196	20.46
Vested	(140,953)	39.76
Canceled	(2,059)	34.38
Nonvested at November 28, 2020	508,443	$	27.29

At November 28, 2020, there was $8.6 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 25 months. The total fair value of shares vested during the nine months ended November 28, 2020 was $3.2 million.

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Earnings per Share

9 Months Ended

Nov. 28, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share:

	Three Months Ended		Nine Months Ended
(In thousands)	November 28, 2020	November 30, 2019	November 28, 2020	November 30, 2019
Basic earnings per share – weighted average common shares outstanding	25,883	26,432	26,068	26,481
Weighted average effect of nonvested share grants and assumed exercise of stock options	342	318	282	295
Diluted earnings per share – weighted average common shares and potential common shares outstanding	26,225	26,750	26,350	26,776
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares)	159	152	238	152

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Segment Information

9 Months Ended

Nov. 28, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has four reporting segments: Architectural Framing Systems, Architectural Glass, Architectural Services and LSO.

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

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

•The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings.

•The LSO segment manufactures value-added glass and acrylic products primarily for framing and display applications.

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Net sales
Architectural Framing Systems	$	136,688	$	165,517	$	439,779	$	533,432
Architectural Glass	84,779		89,433		248,274		288,862
Architectural Services	76,690		69,043		213,911		195,787
Large-Scale Optical	25,267		24,405		48,438		66,449
Intersegment eliminations	(9,841)		(10,482)		(28,240)		(34,190)
Net sales	$	313,583	$	337,916	$	922,162	$	1,050,340
Operating income (loss)
Architectural Framing Systems	$	7,218	$	6,345	$	26,211	$	34,141
Architectural Glass	10,825		4,092		15,306		16,951
Architectural Services	8,558		6,533		20,470		15,082
Large-Scale Optical(1)	26,114		6,754		25,131		15,561
Corporate and other	(2,965)		(2,130)		(7,685)		(9,525)
Operating income	$	49,750	$	21,594	$	79,433	$	72,210

(1) LSO operating income amounts for the three- and nine-month periods ended November 28, 2020 include a $19.3 million gain on the sale-lease back of a building.

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.

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Summary of Significant Accounting Policies (Tables)

1 Months Ended

9 Months Ended

Oct. 08, 2020

Nov. 28, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Impact of new accounting guidance

Adoption of new accounting standardsAt the beginning of fiscal 2021, we adopted the guidance in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for a new impairment model on financial instruments which is based on expected credit losses, which was applied following a modified retrospective approach. Additionally, the new guidance makes targeted improvements to the impairment model for certain available-for-sale debt securities, including eliminating the concept of "other than temporary" from that model. The portion of the guidance related to available-for-sale debt securities was adopted following a prospective approach. The adoption of this ASU did not have a significant impact on earnings or financial condition. Refer to additional disclosures in Notes 2 and 4.

Subsequent Events

Subsequent events

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing. Subsequent to the end of the quarter, we announced the election of our new Chief Executive Officer, Ty R. Silberhorn, and entered into an employment agreement with him, effective January 4, 2021. Mr. Silberhorn replaces, Joseph F. Puishys, who announced his retirement, as an employee of the Company, in September 2020, effective January 4, 2021.

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Revenue, Receivables and Contract Assets and Liabilities (Tables)

9 Months Ended

Nov. 28, 2020

Revenue from Contract with Customer [Abstract]

Disaggregated revenue data

The following table disaggregates total revenue by timing of recognition (see Note 12 for disclosure of revenue by segment):

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Recognized at shipment	$	129,132	$	153,093	$	379,292	$	472,695
Recognized over time	184,451		184,823		542,870		577,645
Total	$	313,583	$	337,916	$	922,162	$	1,050,340

Net receivables

(In thousands)	November 28, 2020		February 29, 2020
Trade accounts	$	122,959	$	141,126
Construction contracts	9,727		20,808
Contract retainage	42,053		37,341
Total receivables	174,739		199,275
Less: allowance for credit losses	(1,862)		(2,469)
Net receivables	$	172,877	$	196,806

Allowance for Credit Losses

The following table summarizes the activity in the allowance for credit losses:

(In thousands)	November 28, 2020
Beginning balance	$	2,469
Additions charged to costs and expenses	325
Deductions from allowance, net of recoveries	(884)
Other changes (1)	(48)
Ending balance	$	1,862
(1) Result of foreign currency effects

Contract assets and liabilities

(In thousands)	November 28, 2020		February 29, 2020
Contract assets	$	71,194	$	110,923
Contract liabilities	27,965		35,954

Performance obligations expected to be satisfied

The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)	November 28, 2020
Within one year	$	498,623
Within two years	331,219
Beyond	71,786
Total	$	901,628

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Supplemental Balance Sheet Information (Tables)

9 Months Ended

Nov. 28, 2020

Inventory Disclosure [Abstract]

Components of inventories

Inventories

(In thousands)	November 28, 2020		February 29, 2020
Raw materials	$	43,292	$	36,611
Work-in-process	16,337		17,520
Finished goods	14,186		16,958
Total inventories	$	73,815	$	71,089

Other current liabilities

Other current liabilities

(In thousands)	November 28, 2020		February 29, 2020
Warranties	$	13,281	$	12,822
Accrued project losses	3,297		48,962
Property and other taxes	13,078		5,952
Accrued self-insurance reserves	9,912		8,307
Other	22,200		42,271
Total other current liabilities	$	61,768	$	118,314

Other non-current liabilities

Other non-current liabilities

(In thousands)	November 28, 2020		February 29, 2020
Deferred benefit from New Market Tax Credit transactions	$	15,717	$	15,717
Retirement plan obligations	8,138		8,294
Deferred compensation plan	8,437		8,452
Deferred tax liabilities	20,014		7,940
Other	28,963		16,459
Total other non-current liabilities	$	81,269	$	56,862

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Financial Instruments (Tables)

9 Months Ended

Nov. 28, 2020

Marketable Securities [Abstract]

Amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale

e hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: 

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
November 28, 2020	$	12,556	$	459	$	—	$	13,015
February 29, 2020	11,692		275		—		11,967

Schedule of amortized cost and estimated fair values of investments by contractual maturity

The amortized cost and estimated fair values of these bonds at November 28, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty.

(In thousands)	Amortized Cost		Estimated Fair Value
Due within one year	$	771	$	779
Due after one year through five years	7,682		7,978
Due after five years through 10 years	3,303		3,428
Due beyond 15 years	800		830
Total	$	12,556	$	13,015

Fair value measurements

(In thousands)	Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Total Fair Value
November 28, 2020
Assets:
Money market funds	$	27,000	$	—	$	27,000
Commercial paper	—		4,300		4,300
Municipal and corporate bonds	—		13,015		13,015
Cash surrender value of life insurance	—		17,704		17,704
Foreign currency and aluminum forward/option contracts	—		896		896
Liabilities:
Deferred compensation	—		14,027		14,027
Interest rate swap contract	—		676		676
February 29, 2020
Assets:
Money market funds	$	2,689	$	—	$	2,689
Commercial paper	—		1,500		1,500
Municipal and corporate bonds	—		11,967		11,967
Cash surrender value of life insurance	—		16,560		16,560
Liabilities:
Deferred compensation	—		14,042		14,042
Foreign currency forward/option contract	—		340		340
Interest rate swap contract	—		561		561

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Goodwill and Other Identifiable Intangible Assets (Tables)

9 Months Ended

Nov. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill attributable to each business segment

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

(In thousands)	Architectural Framing Systems		Architectural Glass		Architectural Services		Large-Scale Optical		Total
Balance at March 2, 2019	$	148,446	$	25,709	$	1,120	$	10,557	$	185,832
Foreign currency translation	(263)		(53)		—		—		(316)
Balance at February 29, 2020	148,183		25,656		1,120		10,557		185,516
Adjustment (1)	6,315		—		—		—		6,315
Foreign currency translation	1,475		(423)		—		—		1,052
Balance at November 28, 2020	$	155,973	$	25,233	$	1,120	$	10,557	$	192,883
(1) During the quarter ended May 30, 2020, we recorded a $6.3 million increase to goodwill and corresponding increase to deferred tax liabilities to correct an immaterial error related to prior periods. The error was not material to any previously reported annual or interim consolidated financial statements.

Schedule of finite lived intangible assets

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

(In thousands)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net
November 28, 2020
Definite-lived intangible assets:
Customer relationships	$	119,647	$	(38,333)	$	1,749	$	83,063
Other intangibles	41,293		(33,488)		174		7,979
Total definite-lived intangible assets	160,940		(71,821)		1,923		91,042
Indefinite-lived intangible assets:
Trademarks	45,300		—		501		45,801
Total intangible assets	$	206,240	$	(71,821)	$	2,424	$	136,843
February 29, 2020
Definite-lived intangible assets:
Customer relationships	$	120,239	$	(33,121)	$	(592)	$	86,526
Other intangibles	41,069		(32,516)		(189)		8,364
Total definite-lived intangible assets	161,308		(65,637)		(781)		94,890
Indefinite-lived intangible assets:
Trademarks	45,421		—		(120)		45,301
Total intangible assets	$	206,729	$	(65,637)	$	(901)	$	140,191

Schedule of estimated future amortization expense for identifiable intangible assets

At November 28, 2020, the estimated future amortization expense for definite-lived intangible assets was:

(In thousands)	Remainder of Fiscal 2021		Fiscal 2022		Fiscal 2023		Fiscal 2024		Fiscal 2025
Estimated amortization expense	$	1,999	$	7,993	$	7,902	$	7,571	$	7,247

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Leases (Tables)

9 Months Ended

Nov. 28, 2020

Leases [Abstract]

Schedule of lease cost

The components of lease expense were as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Operating lease cost	$	3,477	$	3,445	$	10,329	$	10,308
Short-term lease cost	472		427		1,384		1,606
Variable lease cost	678		843		2,071		2,223
Total lease cost	$	4,627	$	4,715	$	13,784	$	14,137

Other supplemental information related to leases was as follows:

	Nine Months Ended
(In thousands except weighted-average data)	November 28, 2020			November 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	10,233		$	10,335
Lease assets obtained in exchange for new operating lease liabilities	$	19,623		$	15,948
Weighted-average remaining lease term - operating leases	5.8 years			5.9 years
Weighted-average discount rate - operating leases	3.18		%	3.57		%

Schedule of operating lease liability

Future maturities of lease liabilities are as follows:

(In thousands)	November 28, 2020
Remainder of Fiscal 2021	$	3,381
Fiscal 2022	13,866
Fiscal 2023	12,662
Fiscal 2024	10,740
Fiscal 2025	8,994
Fiscal 2026	7,136
Thereafter	10,078
Total lease payments	66,857
Less: Amounts representing interest	(1,637)
Present value of lease liabilities	$	65,220

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Commitments and Contingent Liabilities (Tables)

9 Months Ended

Nov. 28, 2020

Commitments and Contingencies Disclosure [Abstract]

Guarantees and warranties

A warranty rollforward follows:  

	Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019
Balance at beginning of period	$	15,629	$	16,737
Additional accruals	4,175		5,996
Claims paid	(4,071)		(7,807)
Balance at end of period	$	15,733	$	14,926

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Share-Based Compensation (Tables)

9 Months Ended

Nov. 28, 2020

Share-based Payment Arrangement [Abstract]

Award transactions on stock options

Stock option and SAR activity for the current nine-month period is summarized as follows:

Stock options and SARs	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at February 29, 2020	100,341	$	8.34
Awards granted	660,600	23.04
Awards exercised	(127,241)	11.45
Outstanding at November 28, 2020	633,700	$	23.04	9.6 years	$	2,889,672
Vested or expected to vest at November 28, 2020	633,700	$	23.04	9.6 years	$	2,889,672

Nonvested share award transactions

Nonvested share activity for the current nine-month period is summarized as follows:

Nonvested shares and units	Number of Shares and Units	Weighted Average Grant Date Fair Value
Nonvested at February 29, 2020	309,259	$	40.58
Granted	342,196	20.46
Vested	(140,953)	39.76
Canceled	(2,059)	34.38
Nonvested at November 28, 2020	508,443	$	27.29

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Earnings per Share (Tables)

9 Months Ended

Nov. 28, 2020

Earnings Per Share [Abstract]

Reconciliation of basic and diluted earnings per share

The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share:

	Three Months Ended		Nine Months Ended
(In thousands)	November 28, 2020	November 30, 2019	November 28, 2020	November 30, 2019
Basic earnings per share – weighted average common shares outstanding	25,883	26,432	26,068	26,481
Weighted average effect of nonvested share grants and assumed exercise of stock options	342	318	282	295
Diluted earnings per share – weighted average common shares and potential common shares outstanding	26,225	26,750	26,350	26,776
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares)	159	152	238	152

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Segment Information (Tables)

9 Months Ended

Nov. 28, 2020

Segment Reporting [Abstract]

Sales and operating income data

	Three Months Ended				Nine Months Ended
(In thousands)	November 28, 2020		November 30, 2019		November 28, 2020		November 30, 2019
Net sales
Architectural Framing Systems	$	136,688	$	165,517	$	439,779	$	533,432
Architectural Glass	84,779		89,433		248,274		288,862
Architectural Services	76,690		69,043		213,911		195,787
Large-Scale Optical	25,267		24,405		48,438		66,449
Intersegment eliminations	(9,841)		(10,482)		(28,240)		(34,190)
Net sales	$	313,583	$	337,916	$	922,162	$	1,050,340
Operating income (loss)
Architectural Framing Systems	$	7,218	$	6,345	$	26,211	$	34,141
Architectural Glass	10,825		4,092		15,306		16,951
Architectural Services	8,558		6,533		20,470		15,082
Large-Scale Optical(1)	26,114		6,754		25,131		15,561
Corporate and other	(2,965)		(2,130)		(7,685)		(9,525)
Operating income	$	49,750	$	21,594	$	79,433	$	72,210

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Revenue, Receivables and Contract Assets and Liabilities Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Disaggregation of Revenue [Line Items]
Total	$ 313,583	$ 337,916	$ 922,162	$ 1,050,340
Revenue, Remaining Performance Obligation, Amount	901,628		901,628
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-28
Disaggregation of Revenue [Line Items]
Revenue, Remaining Performance Obligation, Amount	498,623		498,623
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-28
Disaggregation of Revenue [Line Items]
Revenue, Remaining Performance Obligation, Amount	331,219		331,219
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-28
Disaggregation of Revenue [Line Items]
Revenue, Remaining Performance Obligation, Amount	71,786		71,786
Recognized at shipment
Disaggregation of Revenue [Line Items]
Total	129,132	153,093	379,292	472,695
Recognized over time
Disaggregation of Revenue [Line Items]
Total	$ 184,451	$ 184,823	$ 542,870	$ 577,645

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Revenue, Receivables and Contract Assets and Liabilities Accounts Receivable (Details) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	$ 174,739	$ 199,275
Less: allowance for credit losses	(1,862)	(2,469)
Net receivables	172,877	196,806
Trade accounts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	122,959	141,126
Construction contracts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	9,727	20,808
Contract retainage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	$ 42,053	$ 37,341

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Revenue, Receivables and Contract Assets and Liabilities Allowance for Credit Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 28, 2020	Feb. 29, 2020
Credit Loss [Abstract]
Accounts Receivable, Allowance for Credit Loss	$ 1,862	$ 2,469
Additions charged to costs and expenses	325
Deductions from allowance, net of recoveries	(884)
Other changes (1)	$ (48)

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Revenue, Receivables and Contract Assets and Liabilities Contract Assets & Liabilities (Details) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 71,194	$ 110,923
Contract liabilities	$ 27,965	$ 35,954

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Revenue, Receivables and Contract Assets and Liabilities (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue recognized related to contract liabilities from prior year-end	$ 2,044	$ 4,589	$ 16,239	$ 22,044
Revenue recognized related to prior satisfaction of performance obligations	$ 4,016	$ 1,776	$ 10,545	$ 5,298

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Revenue, Receivables and Contract Assets and Liabilities (Details 5) $ in Thousands	Nov. 28, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 901,628
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	498,623
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	331,219
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 71,786

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Revenue, Receivables and Contract Assets and Liabilities (Details Textual) $ in Thousands	Nov. 28, 2020 USD ($)
Revenue Recognition and Deferred Revenue [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 901,628

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Supplemental Balance Sheet Information - Components of inventories (Details) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 43,292	$ 36,611
Work-in-process	16,337	17,520
Finished goods	14,186	16,958
Total inventories	$ 73,815	$ 71,089

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Supplemental Balance Sheet Information - Other current liabilities (Details) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Inventory Disclosure [Abstract]
Warranties	$ 13,281	$ 12,822
Accrued project losses	3,297	48,962
Property and other taxes	13,078	5,952
Accrued self-insurance reserves	9,912	8,307
Other	22,200	42,271
Total other current liabilities	$ 61,768	$ 118,314

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Supplemental Balance Sheet Information - Other non-current liabilities (Details) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Inventory Disclosure [Abstract]
Deferred benefit from New Market Tax Credit transactions	$ 15,717	$ 15,717
Retirement plan obligations	8,138	8,294
Deferred compensation plan	8,437	8,452
Deferred tax liabilities	20,014	7,940
Other	28,963	16,459
Total other non-current liabilities	$ 81,269	$ 56,862

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Financial Instruments (Details) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 12,556
Estimated Fair Value	13,015
Municipal and Corporate Bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	12,556	$ 11,692
Gross Unrealized Gains	459	275
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 13,015	$ 11,967

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Financial Instruments (Details 2) $ in Thousands	Nov. 28, 2020 USD ($)
Amortized Cost
Due within one year	$ 771
Due after one year through five years	7,682
Due after five years through 10 years	3,303
Due beyond 15 years	800
Total	12,556
Estimated Fair Value
Due within one year	779
Due after one year through five years	7,978
Due after five years through 10 years	3,428
Due beyond 15 years	830
Total	$ 13,015

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Financial Instruments (Details 3) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 27,000	$ 2,689
Commercial paper	4,300	1,500
Municipal and corporate bonds	13,015	11,967
Cash surrender value of life insurance	17,704	16,560
Deferred compensation	14,027	14,042
Foreign currency and aluminum forward/option contracts	896	340
Interest rate swap contract	676	561
Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	27,000	2,689
Commercial paper		0
Municipal and corporate bonds		0
Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Commercial paper	4,300	1,500
Municipal and corporate bonds	13,015	11,967
Cash surrender value of life insurance	17,704	16,560
Deferred compensation	14,027	14,042
Foreign currency and aluminum forward/option contracts	896	340
Interest rate swap contract	$ 676	$ 561

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Financial Instruments (Details Textual) - Designated as Hedging Instrument $ in Millions	Nov. 28, 2020 USD ($)
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 55.0
Foreign Exchange Forward
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	18.7
Commodity Option [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 1.9

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Goodwill and Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 28, 2020	Feb. 29, 2020
Schedule of goodwill attributable to each business segment
Goodwill, Beginning	$ 185,516	$ 185,832
Adjustment (1)	6,315
Foreign currency translation	1,052	(316)
Goodwill, Ending	192,883	185,516
Architectural Framing Systems
Schedule of goodwill attributable to each business segment
Goodwill, Beginning	148,183	148,446
Adjustment (1)	6,315
Foreign currency translation	1,475	(263)
Goodwill, Ending	155,973	148,183
Architectural Glass
Schedule of goodwill attributable to each business segment
Goodwill, Beginning	25,656	25,709
Adjustment (1)	0
Foreign currency translation	(423)	(53)
Goodwill, Ending	25,233	25,656
Architectural Services
Schedule of goodwill attributable to each business segment
Goodwill, Beginning	1,120	1,120
Adjustment (1)	0
Foreign currency translation	0	0
Goodwill, Ending	1,120	1,120
Large-Scale Optical
Schedule of goodwill attributable to each business segment
Goodwill, Beginning	10,557	10,557
Adjustment (1)	0
Foreign currency translation	0	0
Goodwill, Ending	$ 10,557	$ 10,557

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Goodwill and Other Identifiable Intangible Assets (Details 1) - USD ($) $ in Thousands	Nov. 28, 2020	Feb. 29, 2020
Schedule of finite lived identifiable intangible assets
Gross Carrying Amount	$ 160,940	$ 161,308
Accumulated Amortization	(71,821)	(65,637)
Foreign Currency Translation	1,923	(781)
Net	91,042	94,890
Intangible Assets, Gross (Excluding Goodwill)	206,240	206,729
Intangible Assets Accumulated Amortization	(71,821)	(65,637)
Intangible Assets Foreign Currency Translation	2,424	(901)
Intangible Assets, Net (Excluding Goodwill)	136,843	140,191
Customer relationships
Schedule of finite lived identifiable intangible assets
Gross Carrying Amount	119,647	120,239
Accumulated Amortization	(38,333)	(33,121)
Foreign Currency Translation	1,749	(592)
Net	83,063	86,526
Other intangibles
Schedule of finite lived identifiable intangible assets
Gross Carrying Amount	41,293	41,069
Accumulated Amortization	(33,488)	(32,516)
Foreign Currency Translation	174	(189)
Net	7,979	8,364
Indefinite-lived Intangible Assets (Excluding Goodwill)	45,300	45,421
Indefinite Lived Identifiable Intangible Assets, Foreign Currency Translation Adjustments	501	(120)
Indefinite-lived Intangible Assets (Excluding Goodwill), Net of translation adjustments	$ 45,801	$ 45,301

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Goodwill and Other Identifiable Intangible Assets (Details 2) $ in Thousands	Nov. 28, 2020 USD ($)
Schedule of estimated future amortization expense for identifiable intangible assets
Remainder of Fiscal 2021	$ 1,999
Fiscal 2022	7,902
Fiscal 2023	7,571
Fiscal 2024	7,247
Finite-Lived Intangible Asset, Expected Amortization, Year One	$ 7,993

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Goodwill and Other Identifiable Intangible Assets (Details Textual) - USD ($) $ in Millions	9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019
Goodwill and Other Identifiable Intangible Assets (Textual) [Abstract]
Amortization expense on identifiable intangible assets	$ 5.6	$ 5.7

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Debt (Details) $ in Millions	3 Months Ended	9 Months Ended
	Nov. 28, 2020 USD ($)	Nov. 28, 2020 USD ($)	Nov. 30, 2019 USD ($)	Nov. 28, 2020 CAD ($)	Feb. 29, 2020 USD ($)
Line of Credit Facility [Line Items]
Term Loan	$ 150,000,000	$ 150,000,000
Interest payments		3,700,000	$ 7,300,000
Letter of credit
Line of Credit Facility [Line Items]
Debt	18,700,000	18,700,000
Revolving credit facility
Line of Credit Facility [Line Items]
Total debt outstanding	168,500,000	168,500,000			$ 217,900,000
Maximum borrowing capacity	235,000,000	235,000,000
Outstanding borrowings	0	0			47,500,000
Industrial Revenue Bonds
Line of Credit Facility [Line Items]
Debt	15,000,000.0	15,000,000.0
Repayment Recovery Zone Facility Bonds	5,400,000
Canada | Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity				$ 25.0
Outstanding borrowings	$ 3,500,000	$ 3,500,000			$ 0

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Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Leases [Abstract]
Operating lease cost	$ 3,477	$ 3,445	$ 10,329	$ 10,308
Short-term lease cost	472	427	1,384	1,606
Variable lease cost	678	843	2,071	2,223
Total lease cost	$ 4,627	$ 4,715	$ 13,784	$ 14,137

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Leases (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 10,233	$ 10,335
Lease assets obtained in exchange for new operating lease liabilities	$ 19,623	$ 15,948
Weighted-average remaining lease term - operating leases	5 years 9 months 18 days	5 years 10 months 24 days
Weighted-average discount rate - operating leases	3.18%	3.57%

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Leases (Details 2) $ in Thousands	Nov. 28, 2020 USD ($)
Leases [Abstract]
Remainder of Fiscal 2021	$ 3,381
Fiscal 2022	13,866
Fiscal 2023	12,662
Fiscal 2024	10,740
Fiscal 2025	8,994
Fiscal 2026	7,136
Thereafter	10,078
Total lease payments	66,857
Less: Amounts representing interest	(1,637)
Present value of lease liabilities	$ 65,220

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Leases (Details Textual) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 20, 2020	Nov. 28, 2020	Nov. 30, 2019
Leases [Abstract]
Lessee, Operating Lease, Lease Not Yet Commenced, Undiscounted Amount	$ 8,200
Proceeds from sales of property, plant and equipment	25,100	$ 23,724	$ 591
Sale Leaseback Transaction, Carrying Value	4,300
Sale and Leaseback Transaction, Net gain on sale	$ 19,300

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Commitments and Contingent Liabilities (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019
Guarantees and warranties
Balance at beginning of period	$ 15,629	$ 16,737
Additional accruals	4,175	5,996
Claims paid	(4,071)	(7,807)
Balance at end of period	$ 15,733	$ 14,926

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Commitments and Contingent Liabilities (Details 2)	9 Months Ended
	Nov. 28, 2020 USD ($)
Income Tax Contingency [Line Items]
Proceeds received	$ 15,800
Deferred costs	3,500
Net benefit	12,300
November 2020
Income Tax Contingency [Line Items]
Net benefit	7,400,000
June 2023
Income Tax Contingency [Line Items]
Proceeds received	6,000.0
Deferred costs	1,200
Net benefit	4,800
August 2025
Income Tax Contingency [Line Items]
Proceeds received	6,600
Deferred costs	1,300
Net benefit	5,300
September 2025
Income Tax Contingency [Line Items]
Proceeds received	3,200
Deferred costs	1,000.0
Net benefit	$ 2,200

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Commitments and Contingent Liabilities (Details Textual) - USD ($)	9 Months Ended
	Nov. 28, 2020	Feb. 29, 2020
Commitments and Contingencies Disclosure [Abstract]
Face value of performance bonds	$ 1,100,000,000
Companies Backlog Related to Sales	527,800,000
Line of Credit Facility [Line Items]
Project related liability	3,300,000	$ 49,000,000.0
Net benefit	12,300
Purchase obligations	$ 207,500,000

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Share-Based Compensation (Details 1)	3 Months Ended	9 Months Ended
	Nov. 28, 2020 USD ($) $ / shares shares	Nov. 28, 2020 USD ($) $ / shares shares
Award transactions on stock options
Outstanding, Beginning		100,341
Awards granted		660,600
Awards exercised	(127,000)
Outstanding, Ending	633,700	633,700
Outstanding, Vested or expected to vest	633,700	633,700
Award transactions on stock options, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, Beginning | $ / shares		$ 8.34
Weighted average exercise price, Awards granted | $ / shares		23.04
Weighted average exercise price, Awards exercised | $ / shares		11.45
Weighted average exercise price, Ending | $ / shares	$ 23.04	23.04
Weighted average exercise price, Vested or expected to vest | $ / shares	$ 23.04	$ 23.04
Weighted average remaining contractual life, Outstanding	9 years 7 months 6 days
Weighted average remaining contractual term, Vested or expected to vest		9 years 7 months 6 days
Aggregate intrinsic value, Outstanding | $	$ 2,889,672	$ 2,889,672
Aggregate intrinsic value, Vested or expected to vest | $	$ 2,889,672	$ 2,889,672
Deferred Compensation, Share-based Payments [Member]
Award transactions on stock options
Awards exercised		(127,241)

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Share-Based Compensation (Details 2)	9 Months Ended
	Nov. 28, 2020 $ / shares shares
Nonvested share award transactions
Nonvested Number, Beginning | shares	309,259
Number of shares, Granted | shares	342,196
Number of shares, Vested | shares	(140,953)
Number of shares, Canceled | shares	(2,059)
Nonvested Number, Ending | shares	508,443
Nonvested share award transactions, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average grant date fair value, Beginning | $ / shares	$ 40.58
Weighted average grant date fair value, Granted | $ / shares	20.46
Weighted average grant date fair value, Vested | $ / shares	39.76
Weighted average grant date fair value, Canceled | $ / shares	34.38
Weighted average grant date fair value, Ending | $ / shares	$ 27.29

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Share-Based Compensation (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Nov. 28, 2020	Nov. 28, 2020	Nov. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Noncash Expense		$ 6,163,000	$ 4,617,000
Cash proceeds from exercise of stock options		1,500,000	0
Aggregate Intrinsic Value, Exercisable	$ 1,800,000	1,800,000
Total unrecognized compensation cost related to nonvested share	$ 8,600,000	8,600,000
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Excluding Option Exercised			$ 0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period, Nonvested	25 months
Total fair value of shares vested		$ 3,200,000

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Earnings per Share Earnings per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Earnings Per Share [Abstract]
Basic earnings per share – weighted average common shares outstanding	25,883	26,432	26,068	26,481
Weighted average effect of nonvested share grants and assumed exercise of stock options	342	318	282	295
Diluted earnings per share – weighted average common shares and potential common shares outstanding	26,225	26,750	26,350	26,776
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares)	159	152	238	152

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Segment Information Segment Information (Details Textual)	9 Months Ended
	Nov. 28, 2020 Segment
Segment Reporting [Abstract]
Number of Reportable Segments	4

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 28, 2020	Nov. 30, 2019	Nov. 28, 2020	Nov. 30, 2019
Sales and operating income data
Net sales	$ 313,583	$ 337,916	$ 922,162	$ 1,050,340
Operating income (loss)	49,750	21,594	79,433	72,210
Architectural Framing Systems
Sales and operating income data
Net sales	136,688	165,517	439,779	533,432
Operating income (loss)	7,218	6,345	26,211	34,141
Architectural Glass
Sales and operating income data
Net sales	84,779	89,433	248,274	288,862
Operating income (loss)	10,825	4,092	15,306	16,951
Architectural Services
Sales and operating income data
Net sales	76,690	69,043	213,911	195,787
Operating income (loss)	8,558	6,533	20,470	15,082
Large-Scale Optical
Sales and operating income data
Net sales	25,267	24,405	48,438	66,449
Operating income (loss)	26,114	6,754	25,131	15,561
Intersegment eliminations
Sales and operating income data
Net sales	(9,841)	(10,482)	(28,240)	(34,190)
Corporate and other
Sales and operating income data
Operating income (loss)	$ (2,965)	$ (2,130)	$ (7,685)	$ (9,525)