Business Segment Data

12 Months Ended

Feb. 29, 2020

We have four reporting segments:

•

The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems comprising the outside skin and entrances of commercial, institutional and high-end multi-family residential buildings. We have aggregated six operating segments into this reporting segment based on their similar products, customers, distribution methods, production processes and economic characteristics.


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


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


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



(In thousands)	2020			2019			2018
Net Sales
Architectural Framing Systems	$	686,596		$	720,829		$	677,198
Architectural Glass	387,191			367,203			384,137
Architectural Services	269,140			286,314			213,757
Large-Scale Optical	87,911			88,493			88,303
Intersegment elimination	(43,399		)	(60,202		)	(37,222		)
Total	$	1,387,439		$	1,402,637		$	1,326,173
Operating Income (Loss)
Architectural Framing Systems	$	36,110		$	49,660		$	59,031
Architectural Glass	20,760			16,503			32,764
Architectural Services	23,582			30,509			10,420
Large-Scale Optical	22,642			23,003			22,000
Corporate and other	(15,246		)	(52,391		)	(9,931		)
Total	$	87,848		$	67,284		$	114,284
Depreciation and Amortization
Architectural Framing Systems	$	25,432		$	28,937		$	31,764
Architectural Glass	13,570			13,009			14,525
Architectural Services	1,305			1,234			1,325
Large-Scale Optical	3,256			3,692			4,556
Corporate and other	3,232			2,926			2,673
Total	$	46,795		$	49,798		$	54,843
Capital Expenditures
Architectural Framing Systems	$	22,744		$	19,098		$	15,273
Architectural Glass	19,862			27,722			26,228
Architectural Services	1,749			1,433			2,510
Large-Scale Optical	3,153			6,989			3,307
Corporate and other	3,920			5,475			5,878
Total	$	51,428		$	60,717		$	53,196
Identifiable Assets
Architectural Framing Systems	$	604,870		$	617,001		$	618,455
Architectural Glass	291,104			281,817			250,407
Architectural Services	107,538			59,227			53,424
Large-Scale Optical	62,831			61,031			58,523
Corporate and other	62,648			49,092			41,511
Total	$	1,128,991		$	1,068,168		$	1,022,320

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

Segment operating income is equal to net sales less cost of sales and operating expenses. Operating income does not include interest expense or a provision for income taxes. Corporate and other includes miscellaneous corporate activity, including certain legal, consulting and advisory costs not allocable to our segments. Corporate and other also includes $16.7 million in fiscal 2020 and $40.9 million in fiscal 2019, of project-related charges on acquired contracts, as well as $15.0 million of insurance proceeds related to a project matter in fiscal 2020. Identifiable assets for Corporate and other include all short- and long-term available-for-sale securities.

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



(In thousands)	2020		2019		2018
Net Sales
United States	$	1,254,311	$	1,259,319	$	1,187,922
Canada	120,498		128,735		122,981
Brazil	12,630		14,583		15,270
Total	$	1,387,439	$	1,402,637	$	1,326,173
Long-Lived Assets
United States	$	307,782	$	297,072	$	283,432
Canada	11,130		12,563		13,384
Brazil	5,474		6,188		7,247
Total	$	324,386	$	315,823	$	304,063

Apogee's export net sales from U.S. operations were $54.7 million, $56.3 million, and $49.1 million in fiscal 2020, 2019, and 2018, respectively, representing approximately 4 percent of consolidated net sales in each of these fiscal years.