Goodwill and Other Identifiable Intangible Assets

12 Months Ended

Feb. 25, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Identifiable Intangible Assets

6.    Goodwill and Other Intangible Assets

Goodwill

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

Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually as of the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Based on the impairment analysis performed in the fourth quarter, estimated fair value was in excess of carrying value at all of our reporting units.

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

(In thousands)	Architectural Framing Systems		Architectural Services		Architectural Glass		Large-Scale Optical		Total
Balance at February 27, 2021	$	93,099	$	1,120	$	25,322	$	10,557	$	130,098
Foreign currency translation	82		—		(78)		—		4
Balance at February 26, 2022	93,181		1,120		25,244		10,557		130,102
Reallocation among reporting units(1)	(2,048)		2,048		—		—		—
Foreign currency translation	(996)		(137)		57		—		(1,076)
Balance at February 25, 2023	$	90,137	$	3,031	$	25,301	$	10,557	$	129,026

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

Indefinite-lived intangible assets

We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Based on our annual analysis, the fair value of each of our trade names and trademarks exceeded the carrying amount. During fiscal 2022, as a result of triggering events resulting from the finalization of our plans for integrating the

Sotawall business into the Architectural Services segment, beginning in fiscal 2023, it was determined that the carrying value of the Sotawall trade name exceeded fair value by $12.7 million as it was determined to have an immaterial fair value, resulting in the trade name being fully impaired as of fiscal 2022 year end. This amount was recognized as impairment expense in the fourth quarter ended February 26, 2022.

Finite-lived intangible assets

Long-lived assets or asset groups, including intangible assets subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets. Due to triggering events as a result of finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, we determined that the finite-lived intangible assets were impaired as of February 26, 2022. As such, a long-lived asset impairment charge of $36.7 million in finite-lived intangible assets was recognized in the fourth quarter of fiscal year 2022.

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

(In thousands)	Gross Carrying Amount		Accumulated Amortization		Impairment Expense		Foreign Currency Translation		Net
February 25, 2023
Finite-lived intangible assets:
Customer relationships	$	89,495	$	(49,404)	$	—	$	(2,697)	$	37,394
Other intangibles	39,404		(35,229)		—		(1,045)		3,130
Total finite-lived intangible assets	128,899		(84,633)		—		(3,742)		40,524
Indefinite-lived intangible assets:
Trade names and trademarks	27,129		—		—		(278)		26,851
Total intangible assets	$	156,028	$	(84,633)	$	—	$	(4,020)	$	67,375
February 26, 2022
Finite-lived intangible assets:
Customer relationships	$	122,961	$	(47,226)	$	(33,608)	$	141	$	42,268
Other intangibles	41,838		(35,613)		(3,127)		(14)		3,084
Total finite-lived intangible assets	164,799		(82,839)		(36,735)		127		45,352
Indefinite-lived intangible assets:
Trade names and trademarks	39,832		—		(12,738)		35		27,129
Total intangible assets	$	204,631	$	(82,839)	$	(49,473)	$	162	$	72,481

Amortization expense on finite-lived intangible assets was $4.2 million, $7.8 million and $7.6 million in fiscal 2023, 2022 and 2021, respectively. Amortization expense is included within selling, general and administrative expenses for all intangible assets other than that of debt issuance costs, which is included in interest expense. Estimated future amortization expense for finite-lived intangible assets is: 

(In thousands)	2024		2025		2026		2027		2028
Estimated amortization expense	$	4,364	$	4,333	$	4,317	$	4,297	$	3,939