Cover Page
Cover Page - shares | 9 Months Ended | |
Nov. 30, 2019 | Jan. 07, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2019 | |
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 $0.33 1/3 per share | |
Trading Symbol | APOG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,507,935 | |
Entity Central Index Key | 0000006845 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --02-29 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Current assets | ||
Cash and cash equivalents | $ 10,129 | $ 17,087 |
Restricted cash | 401 | 12,154 |
Receivables, net of allowance for doubtful accounts | 197,976 | 192,767 |
Inventories | 75,791 | 78,344 |
Costs and earnings on contracts in excess of billings | 72,284 | 55,095 |
Other current assets | 40,335 | 16,451 |
Total current assets | 396,916 | 371,898 |
Property, plant and equipment, net | 326,418 | 315,823 |
Operating lease right-of-use assets | 56,315 | 0 |
Goodwill | 185,776 | 185,832 |
Intangible assets | 142,779 | 148,235 |
Other non-current assets | 41,587 | 46,380 |
Total assets | 1,149,791 | 1,068,168 |
Current liabilities | ||
Accounts payable | 66,557 | 72,219 |
Accrued payroll and related benefits | 33,339 | 41,119 |
Billings on contracts in excess of costs and earnings | 26,366 | 21,478 |
Operating lease liabilities | 9,399 | 0 |
Current portion of debt | 155,400 | 0 |
Other current liabilities | 108,481 | 92,696 |
Total current liabilities | 399,542 | 227,512 |
Long-term debt | 95,856 | 245,724 |
Non-current operating lease liabilities | 48,509 | 0 |
Non-current self-insurance reserves | 25,260 | 21,433 |
Other non-current liabilities | 65,645 | 77,182 |
Shareholders' equity | ||
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 26,552,935 and 27,015,127 respectively | 8,851 | 9,005 |
Additional paid-in capital | 153,188 | 151,842 |
Retained earnings | 385,032 | 367,597 |
Common stock held in trust | (675) | (755) |
Deferred compensation obligations | 675 | 755 |
Accumulated other comprehensive loss | (32,092) | (32,127) |
Total shareholders’ equity | 514,979 | 496,317 |
Total liabilities and shareholders’ equity | $ 1,149,791 | $ 1,068,168 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Nov. 30, 2019 | Mar. 02, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.33 | $ 0.33 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,552,935 | 27,015,127 |
Common stock, shares outstanding | 26,552,935 | 27,015,127 |
Consolidated Results of Operati
Consolidated Results of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 337,916 | $ 357,718 | $ 1,050,340 | $ 1,056,382 |
Cost of sales | 263,606 | 273,628 | 808,856 | 807,096 |
Gross profit | 74,310 | 84,090 | 241,484 | 249,286 |
Selling, general and administrative expenses | 52,716 | 52,682 | 169,274 | 167,224 |
Operating income | 21,594 | 31,408 | 72,210 | 82,062 |
Interest and other expense, net | 1,764 | 2,787 | 6,577 | 6,254 |
Earnings before income taxes | 19,830 | 28,621 | 65,633 | 75,808 |
Income tax expense | 4,596 | 6,730 | 15,677 | 18,030 |
Net earnings | $ 15,234 | $ 21,891 | $ 49,956 | $ 57,778 |
Earnings per share - basic | ||||
Earnings per share - basic | $ 0.58 | $ 0.79 | $ 1.89 | $ 2.06 |
Earnings per share - diluted | ||||
Earnings per share - diluted | $ 0.57 | $ 0.78 | $ 1.87 | $ 2.04 |
Weighted average basic shares outstanding | 26,432 | 27,836 | 26,481 | 28,030 |
Weighted average diluted shares outstanding | 26,750 | 28,156 | 26,776 | 28,304 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 15,234 | $ 21,891 | $ 49,956 | $ 57,778 |
Other comprehensive (loss) earnings: | ||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | (44) | (58) | 145 | (90) |
Unrealized gain (loss) on derivative instruments, net of $119, $10, $146 and ($99) of tax expense (benefit), respectively | 387 | 32 | 476 | (327) |
Foreign currency translation adjustments | (491) | (3,621) | (586) | (7,518) |
Other comprehensive (loss) earnings | (148) | (3,647) | 35 | (7,935) |
Total comprehensive earnings | $ 15,086 | $ 18,244 | $ 49,991 | $ 49,843 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Earnings (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2019 | Aug. 31, 2019 | Jun. 01, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | Jun. 02, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Tax (benefit) expense on marketable securities | $ (11) | $ 2 | $ 47 | $ (16) | $ (11) | $ 2 | $ 38 | $ (25) |
Tax expense (benefit) on foreign currency hedge | $ (119) | $ (25) | $ (2) | $ (10) | $ 17 | $ 92 | $ (146) | $ 99 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Operating Activities | ||
Net earnings | $ 49,956 | $ 57,778 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 34,681 | 38,378 |
Share-based compensation | 4,617 | 4,724 |
Deferred income taxes | 10,088 | 10,600 |
Gain on disposal of assets | 623 | 2,499 |
Proceeds from New Markets Tax Credit transaction, net of deferred costs | 0 | 8,850 |
Noncash lease expense | 1,525 | 0 |
Other, net | (2,007) | (799) |
Changes in operating assets and liabilities: | ||
Receivables | (5,288) | 9,291 |
Inventories | 2,474 | 4,398 |
Costs and earnings on contracts in excess of billings | (17,156) | (54,569) |
Accounts payable and accrued expenses | (22,457) | (20,072) |
Billings on contracts in excess of costs and earnings | 4,901 | 14,558 |
Refundable and accrued income taxes | (6,159) | 1,831 |
Other | (951) | (1,825) |
Net cash provided by operating activities | 53,601 | 70,644 |
Investing Activities | ||
Capital expenditures | (41,176) | (33,867) |
Proceeds from sales of property, plant and equipment | 591 | 12,332 |
Purchases of marketable securities | (4,201) | (9,006) |
Sales/maturities of marketable securities | 4,867 | 5,813 |
Other | (1,523) | (2,209) |
Net cash used by investing activities | (41,442) | (26,937) |
Financing Activities | ||
Borrowings on line of credit | 108,000 | 294,500 |
Proceeds from issuance of term debt | 150,000 | 0 |
Payments on line of credit | 252,500 | 278,000 |
Repurchase and retirement of common stock | 20,010 | 23,313 |
Dividends paid | (13,808) | (13,180) |
Other | (2,584) | (1,178) |
Net cash used by financing activities | (30,902) | (21,171) |
(Decrease) increase in cash and cash equivalents | (18,743) | 22,536 |
Effect of exchange rates on cash | 32 | (498) |
Cash, cash equivalents and restricted cash at beginning of year | 29,241 | 19,359 |
Cash, cash equivalents and restricted cash at end of period | 10,530 | 41,397 |
Noncash Activity | ||
Capital expenditures in accounts payable | $ 1,205 | $ 5,771 |
Consolidated Statement of Share
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. 03, 2018 | 28,158 | ||||||
Beginning balance at Mar. 03, 2018 | $ 9,386 | $ 152,763 | $ 373,259 | $ (922) | $ 922 | $ (24,053) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reclassification from AOCI, Current Period, Tax | 737 | ||||||
Reclassification of tax effects | $ 737 | ||||||
Net earnings | 15,373 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 10 | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | (304) | ||||||
Foreign currency translation adjustments | (517) | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 90 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 30 | 35 | 91 | (91) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,514 | ||||||
Outstanding shares awards exercised | 19 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | 6 | 177 | |||||
Stock Repurchased and Retired During Period, Shares | (41) | ||||||
Stock Repurchased and Retired During Period, Value | (13) | (228) | (1,440) | ||||
Dividends, Common Stock, Cash | (4,410) | ||||||
Ending balance (in shares) at Jun. 02, 2018 | 28,226 | ||||||
Ending balance at Jun. 02, 2018 | 9,409 | 154,261 | 386,518 | (831) | 831 | (25,601) | |
Beginning balance (in shares) at Mar. 03, 2018 | 28,158 | ||||||
Beginning balance at Mar. 03, 2018 | 9,386 | 152,763 | 373,259 | (922) | 922 | (24,053) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 57,778 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | (90) | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | $ (327) | ||||||
Ending balance (in shares) at Dec. 01, 2018 | 27,656 | ||||||
Ending balance at Dec. 01, 2018 | 9,219 | 154,095 | 400,289 | (745) | 745 | (32,729) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect adjustment | 2,999 | ||||||
Beginning balance (in shares) at Jun. 02, 2018 | 28,226 | ||||||
Beginning balance at Jun. 02, 2018 | 9,409 | 154,261 | 386,518 | (831) | 831 | (25,601) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 20,514 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | (42) | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | (55) | ||||||
Foreign currency translation adjustments | (3,383) | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 35 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 12 | 37 | (11) | 11 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,605 | ||||||
Stock Repurchased and Retired During Period, Shares | (1) | ||||||
Stock Repurchased and Retired During Period, Value | (1) | (5) | |||||
Dividends, Common Stock, Cash | (4,413) | ||||||
Ending balance (in shares) at Sep. 01, 2018 | 28,260 | ||||||
Ending balance at Sep. 01, 2018 | 9,420 | 155,898 | 402,619 | (842) | 842 | (29,081) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 21,891 | 21,891 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | (58) | (58) | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | $ 32 | 32 | |||||
Foreign currency translation adjustments | (3,622) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 54 | 97 | (97) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,605 | ||||||
Share repurchases (in shares) | (600) | ||||||
Share repurchases | (200) | (3,436) | (19,677) | ||||
Stock Repurchased and Retired During Period, Shares | (4) | ||||||
Stock Repurchased and Retired During Period, Value | (1) | (26) | (187) | ||||
Dividends, Common Stock, Cash | (4,357) | ||||||
Ending balance (in shares) at Dec. 01, 2018 | 27,656 | ||||||
Ending balance at Dec. 01, 2018 | 9,219 | 154,095 | 400,289 | (745) | 745 | (32,729) | |
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 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 181 | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 5 | ||||||
Foreign currency translation adjustments | (2,560) | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 79 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 26 | 14 | (12) | 12 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,618 | ||||||
Share repurchases (in shares) | (532) | ||||||
Share repurchases | (177) | (3,051) | (16,782) | ||||
Stock Repurchased and Retired During Period, Shares | (32) | ||||||
Stock Repurchased and Retired During Period, Value | (11) | (183) | (1,266) | ||||
Dividends, Common Stock, Cash | (4,598) | ||||||
Ending balance (in shares) at Jun. 01, 2019 | 26,530 | ||||||
Ending balance at Jun. 01, 2019 | 8,843 | 150,240 | 360,394 | (767) | 767 | (34,501) | |
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) |
Beginning balance (in shares) at Jun. 01, 2019 | 26,530 | ||||||
Beginning balance at Jun. 01, 2019 | 8,843 | 150,240 | 360,394 | (767) | 767 | (34,501) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 19,279 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 8 | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 84 | ||||||
Foreign currency translation adjustments | 2,465 | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 44 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 15 | 27 | (11) | 11 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,582 | ||||||
Stock Repurchased and Retired During Period, Shares | (20) | ||||||
Stock Repurchased and Retired During Period, Value | (7) | (114) | (629) | ||||
Dividends, Common Stock, Cash | (4,605) | ||||||
Ending balance (in shares) at Aug. 31, 2019 | 26,554 | ||||||
Ending balance at Aug. 31, 2019 | 8,851 | 151,735 | 374,439 | (778) | 778 | (31,944) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
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) | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (1) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1 | 43 | 103 | (103) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,417 | ||||||
Stock Repurchased and Retired During Period, Shares | 0 | ||||||
Stock Repurchased and Retired During Period, Value | (1) | (7) | (36) | ||||
Dividends, Common Stock, Cash | (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) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders Equity (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2019 | Aug. 31, 2019 | Jun. 01, 2019 | Dec. 01, 2018 | Sep. 01, 2018 | Jun. 02, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Tax expense (benefit) on marketable securities | $ (11) | $ 2 | $ 47 | $ (16) | $ (11) | $ 2 | $ 38 | $ (25) |
Tax expense (benefit) on foreign currency hedge | $ (119) | $ (25) | $ (2) | $ (10) | $ 17 | $ 92 | $ (146) | $ 99 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 30, 2019 | |
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 March 2, 2019 . We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. The results of operations for the nine -month period ended November 30, 2019 are not necessarily indicative of the results to be expected for the full year. Adoption of new accounting standards At the beginning of fiscal 2020, we adopted the guidance in ASC 842, Leases , following a modified retrospective approach and elected not to restate prior periods. Adoption of the new standard resulted in recording operating lease assets and liabilities of approximately $50 million as of March 3, 2019 and did not materially impact our consolidated net earnings and cash flows. Refer to additional information in Note 7. Accounting standards not yet adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. This ASU is effective for our fiscal year 2021. Entities are required to apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We do not expect the adoption of this ASU to have a significant impact on our consolidated financial statements. Subsequent events |
Revenue, Receivables and Contra
Revenue, Receivables and Contract Assets and Liabilities | 9 Months Ended |
Nov. 30, 2019 | |
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 13 for disclosure of revenue by segment): Three Months Ended Nine Months Ended In thousands November 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018 Recognized at shipment $ 153,093 $ 158,164 $ 472,695 $ 481,565 Recognized over time 184,823 199,554 577,645 574,817 Total $ 337,916 $ 357,718 $ 1,050,340 $ 1,056,382 Receivables Trade and construction accounts receivable consist of amounts billed and due from customers. The amounts due are stated at their estimated net realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. This allowance is based on an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. 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 30, 2019 March 2, 2019 Trade accounts $ 141,448 $ 145,693 Construction contracts 23,096 19,050 Contract retainage 35,287 32,396 Total receivables 199,831 197,139 Less: allowance for doubtful accounts (1,855 ) (4,372 ) Net receivables $ 197,976 $ 192,767 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 30, 2019 March 2, 2019 Contract assets $ 107,571 $ 87,491 Contract liabilities 28,863 24,083 The increase in contract assets was due to timing of costs incurred in advance of billings, primarily on a legacy EFCO project. 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 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018 Revenue recognized related to contract liabilities from prior year-end $ 4,589 $ — $ 22,044 $ 10,398 Revenue recognized related to prior satisfaction of performance obligations 1,776 1,470 5,298 3,798 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 30, 2019 , the transaction price associated with unsatisfied performance obligations was approximately $896.7 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 30, 2019 Within one year $ 480,803 Within two years 344,827 Beyond 71,044 Total $ 896,674 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Inventories In thousands November 30, 2019 March 2, 2019 Raw materials $ 39,746 $ 43,890 Work-in-process 19,255 15,533 Finished goods 16,790 18,921 Total inventories $ 75,791 $ 78,344 Other current assets In thousands November 30, 2019 March 2, 2019 Prepaid assets $ 11,662 $ 11,682 Insurance receivable 15,000 — Refundable income taxes 4,278 — Other 9,395 4,769 Total other current assets $ 40,335 $ 16,451 Other current liabilities In thousands November 30, 2019 March 2, 2019 Warranties $ 10,601 $ 12,475 Accrued project losses 47,562 37,085 Property and other taxes 7,156 8,026 Accrued self-insurance reserves 9,297 9,537 Other 33,865 25,573 Total other current liabilities $ 108,481 $ 92,696 Other non-current liabilities In thousands November 30, 2019 March 2, 2019 Deferred benefit from New Market Tax Credit transactions $ 15,717 $ 26,458 Retirement plan obligations 7,633 7,633 Deferred compensation plan 11,743 10,408 Other 30,552 32,683 Total other non-current liabilities $ 65,645 $ 77,182 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Nov. 30, 2019 | |
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 30, 2019 $ 11,750 $ 152 $ 18 $ 11,884 March 2, 2019 12,481 59 108 12,432 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 30, 2019 , 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 $ 835 $ 837 Due after one year through five years 8,581 8,710 Due after five years through 10 years 2,259 2,262 Due after 10 years through 15 years — — Due beyond 15 years 75 75 Total $ 11,750 $ 11,884 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 30, 2019 , the interest rate swap contract had a notional value of $85 million . We periodically enter into forward purchase foreign currency cash flow hedge contracts, generally with an original maturity date of less than one year, to hedge foreign currency exchange rate risk. As of November 30, 2019 , we held foreign exchange forward contracts with a U.S. dollar notional value of $24.7 million , with the objective of reducing the exposure to fluctuations in the Canadian dollar and the Euro. 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 30, 2019 Assets: Money market funds $ 2,680 $ — $ 2,680 Commercial paper — 500 500 Municipal and corporate bonds — 12,384 12,384 Liabilities: Foreign currency forward/option contract — 69 69 Interest rate swap contract — 16 16 March 2, 2019 Assets: Money market funds $ 2,015 $ — $ 2,015 Commercial paper — 300 300 Municipal and corporate bonds — 12,432 12,432 Liabilities: Foreign currency forward/option contract — 470 470 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. Derivative instruments |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 9 Months Ended |
Nov. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets 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 3, 2018 $ 143,308 $ 25,971 $ 1,120 $ 10,557 $ 180,956 Goodwill adjustments for purchase accounting 6,267 — — — 6,267 Foreign currency translation (1,129 ) (262 ) — — (1,391 ) Balance at March 2, 2019 148,446 25,709 1,120 10,557 185,832 Foreign currency translation 47 (103 ) — — (56 ) Balance at November 30, 2019 $ 148,493 $ 25,606 $ 1,120 $ 10,557 $ 185,776 The gross carrying amount of other intangible assets and related accumulated amortization was: In thousands Gross Carrying Amount Accumulated Amortization Impairment Foreign Currency Translation Net November 30, 2019 Definite-lived intangible assets: Customer relationships $ 120,238 $ (31,566 ) $ — $ (20 ) $ 88,652 Other intangibles 41,033 (32,274 ) — (74 ) 8,685 Total definite-lived intangible assets 161,271 (63,840 ) — (94 ) 97,337 Indefinite-lived intangible assets: Trademarks 45,421 — — 21 45,442 Total intangible assets $ 206,692 $ (63,840 ) $ — $ (73 ) $ 142,779 March 2, 2019 Definite-lived intangible assets: Customer relationships $ 122,816 $ (26,637 ) $ — $ (2,578 ) $ 93,601 Other intangibles 41,697 (31,634 ) — (850 ) 9,213 Total definite-lived intangible assets 164,513 (58,271 ) — (3,428 ) 102,814 Indefinite-lived intangible assets: Trademarks 49,078 — (3,141 ) (516 ) 45,421 Total intangible assets $ 213,591 $ (58,271 ) $ (3,141 ) $ (3,944 ) $ 148,235 Amortization expense on definite-lived intangible assets was $5.7 million and $10.5 million for the nine -month periods ended November 30, 2019 and December 1, 2018 , respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At November 30, 2019 , the estimated future amortization expense for definite-lived intangible assets was: In thousands Remainder of Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Estimated amortization expense $ 1,982 $ 7,921 $ 7,915 $ 7,750 $ 7,563 |
Debt
Debt | 9 Months Ended |
Nov. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of November 30, 2019 , our total debt outstanding was $251.3 million , compared to $245.8 million as of March 2, 2019. During the second quarter of fiscal 2020, we amended the borrowing capacity of our prior credit facility to $235 million with a maturity of June 2024 and we established a $150 million term loan with a maturity of June 2020 . Outstanding borrowings under the revolving credit facility were $80.5 million , as of November 30, 2019 , and $225.0 million , as of March 2, 2019 . Our revolving credit facility and term loan contains 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 30, 2019 , we were in compliance with both financial covenants. Additionally, at November 30, 2019 , we had a total of $24.7 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal years 2021 to 2032 and reduce borrowing capacity under the revolving credit facility. At November 30, 2019 , debt included $20.4 million of industrial revenue bonds that mature in fiscal years 2021 through 2043 and $0.4 million of long-term debt in Canada. The fair value of the industrial revenue bonds approximated carrying value at November 30, 2019 , 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 demand credit facilities totaling $ 12.0 million Canadian dollars. As of November 30, 2019 and March 2, 2019 , no borrowings were outstanding under the facilities. Borrowings under these facilities are made available at the sole discretion of the lenders and are payable on demand. Interest payments were $7.3 million and $7.2 million for the nine months ended November 30, 2019 and December 1, 2018 , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Nov. 30, 2019 | |
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 30, 2019 , $833.9 million of these types of bonds were outstanding, of which $432.6 million is on 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 30, 2019 December 1, 2018 Balance at beginning of period $ 16,737 $ 22,517 Additional accruals 5,996 3,437 Claims paid (7,807 ) (8,398 ) Balance at end of period $ 14,926 $ 17,556 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. We have recorded an estimated liability related to a legacy EFCO project of $47.6 million and $42.8 million as of November 30, 2019 and March 2, 2019 , respectively. This includes approximately $14.7 million recorded in the third quarter for estimated costs associated with project dispute resolution and other additional project costs. In the third quarter, upon confirmation of coverage by an insurer, we also recorded an insurance receivable of $15.0 million , included within other current assets on the consolidated balance sheets and within cost of sales on the consolidated results of operations. We received this payment subsequent to quarter-end. Letters of credit At November 30, 2019 , we had $24.7 million of ongoing letters of credit, all of which have been issued under our committed revolving credit facility, as discussed in Note 6. Purchase obligations Purchase obligations for raw material commitments and capital expenditures totaled $146.0 million as of November 30, 2019 . New Markets Tax Credit (NMTC) transactions We have entered into four separate NMTC programs to support our operational expansion, including two transactions completed in fiscal 2019 . Proceeds received from investors on these transactions are included within other current and 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 current and 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 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. The table below provides a summary of our outstanding NMTC transactions (in millions): Inception date Termination date Proceeds received Deferred costs Net benefit November 2013 October 2020 $ 10.7 $ 3.0 $ 7.7 June 2016 May 2023 6.0 0.9 5.1 August 2018 July 2025 6.6 0.9 5.7 September 2018 August 2025 3.2 0.8 2.4 Total $ 26.5 $ 5.6 $ 20.9 Litigation On November 5, 2018, a shareholder filed a purported securities class action against the Company and certain named executive officers. On April 26, 2019, the new lead plaintiff filed an amended complaint, alleging that, during the purported class period of May 1, 2017 to April 10, 2019, the Company and the named executive officers made materially false or misleading statements or omissions about the Company's acquisition of EFCO Corporation on June 12, 2017, and about the Company's Architectural Glass business segment, in violation of the federal securities laws. We intend to vigorously defend this matter. On December 17, 2018, a different shareholder filed a derivative lawsuit, purportedly on behalf of the Company, against certain of our executive officers and directors claiming breaches of fiduciary duty, waste of corporate assets and unjust enrichment. This complaint alleges that the officers and directors allegedly made materially false or misleading statements or omissions about the Company's business, operations and prospects, particularly with respect to our Architectural Glass business segment, during the period between June 28, 2018 and September 17, 2018. This matter has been stayed, pending resolution of a motion to dismiss the foregoing matter. We intend to vigorously defend this matter. In addition to the foregoing, 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. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Nov. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Total share-based compensation expense included in the results of operations was $4.6 million for the nine -month period ended November 30, 2019 and $4.7 million for the nine -month period ended December 1, 2018 . 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 March 2, 2019 100,341 $ 8.34 Awards exercised — — Outstanding and exercisable at November 30, 2019 100,341 8.34 1.8 years $ 3,000,196 No awards were exercised for the nine -months ended November 30, 2019 . For the nine -months ended December 1, 2018 , cash proceeds from the exercise of stock options were $0.2 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 $0.6 million . 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 March 2, 2019 286,613 $ 47.00 Granted 125,571 39.53 Vested (128,333 ) 49.00 Canceled (3,000 ) 43.08 Nonvested at November 30, 2019 280,851 42.78 At November 30, 2019 , there was $6.9 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 20 months. The total fair value of shares vested during the nine months ended November 30, 2019 was $5.1 million . |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors two frozen defined-benefit pension plans: an unfunded Officers’ Supplemental Executive Retirement Plan and the Tubelite Inc. Hourly Employees’ Pension Plan. Components of net periodic benefit cost were: Three Months Ended Nine Months Ended In thousands November 30, 2019 December 1, 2018 November 30, December 1, Interest cost $ 123 $ 127 $ 369 $ 381 Expected return on assets (46 ) (10 ) (138 ) (30 ) Amortization of unrecognized net loss 55 57 165 171 Net periodic benefit cost $ 132 $ 174 $ 396 $ 522 |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2019 | |
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 approximately $5.2 million at November 30, 2019 and $5.1 million at March 2, 2019 . 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. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Nov. 30, 2019 | |
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 30, 2019 December 1, 2018 November 30, December 1, Basic earnings per share – weighted average common shares outstanding 26,432 27,836 26,481 28,030 Weighted average effect of nonvested share grants and assumed exercise of stock options 318 320 295 274 Diluted earnings per share – weighted average common shares and potential common shares outstanding 26,750 28,156 26,776 28,304 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) 152 170 152 92 |
Segment Information
Segment Information | 9 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has four reporting segments: Architectural Framing Systems, Architectural Glass, Architectural Services and Large-Scale Optical (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 Company has 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 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 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018 Net sales from operations Architectural Framing Systems $ 165,517 $ 181,306 $ 533,432 $ 550,193 Architectural Glass 89,433 98,524 288,862 263,533 Architectural Services 69,043 72,828 195,787 220,051 Large-Scale Optical 24,405 23,377 66,449 64,522 Intersegment eliminations (10,482 ) (18,317 ) (34,190 ) (41,917 ) Net sales $ 337,916 $ 357,718 $ 1,050,340 $ 1,056,382 Operating income (loss) from operations Architectural Framing Systems $ 6,345 $ 12,903 $ 34,141 $ 43,554 Architectural Glass 4,092 5,851 16,951 9,168 Architectural Services 6,533 8,659 15,082 21,435 Large-Scale Optical 6,754 6,628 15,561 15,845 Corporate and other (2,130 ) (2,633 ) (9,525 ) (7,940 ) Operating income $ 21,594 $ 31,408 $ 72,210 $ 82,062 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. |
Leases Leases
Leases Leases | 9 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Leases | 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 nonlease 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 30, 2019 November 30, 2019 Operating lease cost $ 3,445 $ 10,308 Short-term lease cost 427 1,606 Variable lease cost 843 2,223 Total lease cost $ 4,715 $ 14,137 Other supplemental information related to leases was as follows: Nine Months Ended In thousands except weighted-average data November 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,335 Lease assets obtained in exchange for new operating lease liabilities $ 15,948 Weighted-average remaining lease term - operating leases 5.9 years Weighted-average discount rate - operating leases 3.57 % Future maturities of lease liabilities are as follows: In thousands November 30, 2019 Remainder of Fiscal 2020 $ 3,366 Fiscal 2021 12,880 Fiscal 2022 11,256 Fiscal 2023 10,307 Fiscal 2024 8,147 Fiscal 2025 6,290 Thereafter 12,357 Total lease payments 64,603 Less: Amounts representing interest (6,695 ) Present value of lease liabilities $ 57,908 As of November 30, 2019 , we have no additional future operating lease commitments for leases that have not yet commenced. Aggregate annual future rental commitments under operating leases with noncancellable terms of more than one year at March 2, 2019 were reported under previous lease accounting standards as follows: In thousands 2020 2021 2022 2023 2024 Thereafter Total Total minimum payments $ 14,888 11,787 9,669 8,772 6,735 16,806 $ 68,657 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impact of new accounting guidance | Adoption of new accounting standards At the beginning of fiscal 2020, we adopted the guidance in ASC 842, Leases , following a modified retrospective approach and elected not to restate prior periods. Adoption of the new standard resulted in recording operating lease assets and liabilities of approximately $50 million as of March 3, 2019 and did not materially impact our consolidated net earnings and cash flows. Refer to additional information in Note 7. |
Revenue, Receivables and Cont_2
Revenue, Receivables and Contract Assets and Liabilities (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue data | The following table disaggregates total revenue by timing of recognition (see Note 13 for disclosure of revenue by segment): Three Months Ended Nine Months Ended In thousands November 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018 Recognized at shipment $ 153,093 $ 158,164 $ 472,695 $ 481,565 Recognized over time 184,823 199,554 577,645 574,817 Total $ 337,916 $ 357,718 $ 1,050,340 $ 1,056,382 |
Net receivables | In thousands November 30, 2019 March 2, 2019 Trade accounts $ 141,448 $ 145,693 Construction contracts 23,096 19,050 Contract retainage 35,287 32,396 Total receivables 199,831 197,139 Less: allowance for doubtful accounts (1,855 ) (4,372 ) Net receivables $ 197,976 $ 192,767 |
Contract assets and liabilities | In thousands November 30, 2019 March 2, 2019 Contract assets $ 107,571 $ 87,491 Contract liabilities 28,863 24,083 |
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 30, 2019 Within one year $ 480,803 Within two years 344,827 Beyond 71,044 Total $ 896,674 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Inventories In thousands November 30, 2019 March 2, 2019 Raw materials $ 39,746 $ 43,890 Work-in-process 19,255 15,533 Finished goods 16,790 18,921 Total inventories $ 75,791 $ 78,344 |
Other current assets | Other current assets In thousands November 30, 2019 March 2, 2019 Prepaid assets $ 11,662 $ 11,682 Insurance receivable 15,000 — Refundable income taxes 4,278 — Other 9,395 4,769 Total other current assets $ 40,335 $ 16,451 |
Other current liabilities | Other current liabilities In thousands November 30, 2019 March 2, 2019 Warranties $ 10,601 $ 12,475 Accrued project losses 47,562 37,085 Property and other taxes 7,156 8,026 Accrued self-insurance reserves 9,297 9,537 Other 33,865 25,573 Total other current liabilities $ 108,481 $ 92,696 |
Other non-current liabilities | Other non-current liabilities In thousands November 30, 2019 March 2, 2019 Deferred benefit from New Market Tax Credit transactions $ 15,717 $ 26,458 Retirement plan obligations 7,633 7,633 Deferred compensation plan 11,743 10,408 Other 30,552 32,683 Total other non-current liabilities $ 65,645 $ 77,182 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
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 30, 2019 $ 11,750 $ 152 $ 18 $ 11,884 March 2, 2019 12,481 59 108 12,432 |
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 30, 2019 , 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 $ 835 $ 837 Due after one year through five years 8,581 8,710 Due after five years through 10 years 2,259 2,262 Due after 10 years through 15 years — — Due beyond 15 years 75 75 Total $ 11,750 $ 11,884 |
Fair value measurements | In thousands Quoted Prices in Active Markets (Level 1) Other Observable Inputs (Level 2) Total Fair Value November 30, 2019 Assets: Money market funds $ 2,680 $ — $ 2,680 Commercial paper — 500 500 Municipal and corporate bonds — 12,384 12,384 Liabilities: Foreign currency forward/option contract — 69 69 Interest rate swap contract — 16 16 March 2, 2019 Assets: Money market funds $ 2,015 $ — $ 2,015 Commercial paper — 300 300 Municipal and corporate bonds — 12,432 12,432 Liabilities: Foreign currency forward/option contract — 470 470 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
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 3, 2018 $ 143,308 $ 25,971 $ 1,120 $ 10,557 $ 180,956 Goodwill adjustments for purchase accounting 6,267 — — — 6,267 Foreign currency translation (1,129 ) (262 ) — — (1,391 ) Balance at March 2, 2019 148,446 25,709 1,120 10,557 185,832 Foreign currency translation 47 (103 ) — — (56 ) Balance at November 30, 2019 $ 148,493 $ 25,606 $ 1,120 $ 10,557 $ 185,776 |
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 Impairment Foreign Currency Translation Net November 30, 2019 Definite-lived intangible assets: Customer relationships $ 120,238 $ (31,566 ) $ — $ (20 ) $ 88,652 Other intangibles 41,033 (32,274 ) — (74 ) 8,685 Total definite-lived intangible assets 161,271 (63,840 ) — (94 ) 97,337 Indefinite-lived intangible assets: Trademarks 45,421 — — 21 45,442 Total intangible assets $ 206,692 $ (63,840 ) $ — $ (73 ) $ 142,779 March 2, 2019 Definite-lived intangible assets: Customer relationships $ 122,816 $ (26,637 ) $ — $ (2,578 ) $ 93,601 Other intangibles 41,697 (31,634 ) — (850 ) 9,213 Total definite-lived intangible assets 164,513 (58,271 ) — (3,428 ) 102,814 Indefinite-lived intangible assets: Trademarks 49,078 — (3,141 ) (516 ) 45,421 Total intangible assets $ 213,591 $ (58,271 ) $ (3,141 ) $ (3,944 ) $ 148,235 |
Schedule of estimated future amortization expense for identifiable intangible assets | At November 30, 2019 , the estimated future amortization expense for definite-lived intangible assets was: In thousands Remainder of Fiscal 2020 Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Estimated amortization expense $ 1,982 $ 7,921 $ 7,915 $ 7,750 $ 7,563 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Guarantees and warranties | A warranty rollforward follows: Nine Months Ended In thousands November 30, 2019 December 1, 2018 Balance at beginning of period $ 16,737 $ 22,517 Additional accruals 5,996 3,437 Claims paid (7,807 ) (8,398 ) Balance at end of period $ 14,926 $ 17,556 | |
Proceeds from New Markets Tax Credit transaction, net of deferred costs | $ 0 | $ 8,850 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
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 March 2, 2019 100,341 $ 8.34 Awards exercised — — Outstanding and exercisable at November 30, 2019 100,341 8.34 1.8 years $ 3,000,196 |
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 March 2, 2019 286,613 $ 47.00 Granted 125,571 39.53 Vested (128,333 ) 49.00 Canceled (3,000 ) 43.08 Nonvested at November 30, 2019 280,851 42.78 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | Components of net periodic benefit cost were: Three Months Ended Nine Months Ended In thousands November 30, 2019 December 1, 2018 November 30, December 1, Interest cost $ 123 $ 127 $ 369 $ 381 Expected return on assets (46 ) (10 ) (138 ) (30 ) Amortization of unrecognized net loss 55 57 165 171 Net periodic benefit cost $ 132 $ 174 $ 396 $ 522 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
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 30, 2019 December 1, 2018 November 30, December 1, Basic earnings per share – weighted average common shares outstanding 26,432 27,836 26,481 28,030 Weighted average effect of nonvested share grants and assumed exercise of stock options 318 320 295 274 Diluted earnings per share – weighted average common shares and potential common shares outstanding 26,750 28,156 26,776 28,304 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) 152 170 152 92 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
Segment Reporting [Abstract] | |
Sales and operating income data | Three Months Ended Nine Months Ended In thousands November 30, 2019 December 1, 2018 November 30, 2019 December 1, 2018 Net sales from operations Architectural Framing Systems $ 165,517 $ 181,306 $ 533,432 $ 550,193 Architectural Glass 89,433 98,524 288,862 263,533 Architectural Services 69,043 72,828 195,787 220,051 Large-Scale Optical 24,405 23,377 66,449 64,522 Intersegment eliminations (10,482 ) (18,317 ) (34,190 ) (41,917 ) Net sales $ 337,916 $ 357,718 $ 1,050,340 $ 1,056,382 Operating income (loss) from operations Architectural Framing Systems $ 6,345 $ 12,903 $ 34,141 $ 43,554 Architectural Glass 4,092 5,851 16,951 9,168 Architectural Services 6,533 8,659 15,082 21,435 Large-Scale Optical 6,754 6,628 15,561 15,845 Corporate and other (2,130 ) (2,633 ) (9,525 ) (7,940 ) Operating income $ 21,594 $ 31,408 $ 72,210 $ 82,062 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Nov. 30, 2019 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease expense were as follows: Three Months Ended Nine Months Ended In thousands November 30, 2019 November 30, 2019 Operating lease cost $ 3,445 $ 10,308 Short-term lease cost 427 1,606 Variable lease cost 843 2,223 Total lease cost $ 4,715 $ 14,137 Other supplemental information related to leases was as follows: Nine Months Ended In thousands except weighted-average data November 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,335 Lease assets obtained in exchange for new operating lease liabilities $ 15,948 Weighted-average remaining lease term - operating leases 5.9 years Weighted-average discount rate - operating leases 3.57 % |
Schedule of operating lease liability | Future maturities of lease liabilities are as follows: In thousands November 30, 2019 Remainder of Fiscal 2020 $ 3,366 Fiscal 2021 12,880 Fiscal 2022 11,256 Fiscal 2023 10,307 Fiscal 2024 8,147 Fiscal 2025 6,290 Thereafter 12,357 Total lease payments 64,603 Less: Amounts representing interest (6,695 ) Present value of lease liabilities $ 57,908 Aggregate annual future rental commitments under operating leases with noncancellable terms of more than one year at March 2, 2019 were reported under previous lease accounting standards as follows: In thousands 2020 2021 2022 2023 2024 Thereafter Total Total minimum payments $ 14,888 11,787 9,669 8,772 6,735 16,806 $ 68,657 |
Acquisition (Details 1)
Acquisition (Details 1) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 | Mar. 03, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 185,776 | $ 185,832 | $ 180,956 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 03, 2019 | Mar. 02, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 56,315 | $ 50,000 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details 3) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 03, 2019 | Mar. 02, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Operating lease assets | $ 56,315 | $ 50,000 | $ 0 |
Operating lease liabilities | $ 57,908 | $ 50,000 |
Revenue, Receivables and Cont_3
Revenue, Receivables and Contract Assets and Liabilities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 337,916 | $ 357,718 | $ 1,050,340 | $ 1,056,382 |
Recognized at shipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 153,093 | 158,164 | 472,695 | 481,565 |
Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 184,823 | $ 199,554 | $ 577,645 | $ 574,817 |
Revenue, Receivables and Cont_4
Revenue, Receivables and Contract Assets and Liabilities (Details 2) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 199,831 | $ 197,139 |
Less: allowance for doubtful accounts | (1,855) | (4,372) |
Net receivables | 197,976 | 192,767 |
Trade accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 141,448 | 145,693 |
Construction contracts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 23,096 | 19,050 |
Contract retainage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 35,287 | $ 32,396 |
Revenue, Receivables and Cont_5
Revenue, Receivables and Contract Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 107,571 | $ 87,491 |
Contract liabilities | $ 28,863 | $ 24,083 |
Revenue, Receivables and Cont_6
Revenue, Receivables and Contract Assets and Liabilities (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized related to contract liabilities from prior year-end | $ 4,589 | $ 0 | $ 22,044 | $ 10,398 |
Revenue recognized related to prior satisfaction of performance obligations | $ 1,776 | $ 1,470 | $ 5,298 | $ 3,798 |
Revenue, Receivables and Cont_7
Revenue, Receivables and Contract Assets and Liabilities (Details 5) $ in Thousands | Nov. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | $ 480,803 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 344,827 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-02 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | 71,044 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total | $ 896,674 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Components of inventories (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 39,746 | $ 43,890 |
Work-in-process | 19,255 | 15,533 |
Finished goods | 16,790 | 18,921 |
Total inventories | $ 75,791 | $ 78,344 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Other current assets (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Prepaid assets | $ 11,662 | $ 11,682 |
Insurance receivable | 15,000 | 0 |
Refundable income taxes | 4,278 | 0 |
Other | 9,395 | 4,769 |
Total other current assets | $ 40,335 | $ 16,451 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Other current liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Warranties | $ 10,601 | $ 12,475 |
Accrued project losses | 47,562 | 37,085 |
Property and other taxes | 7,156 | 8,026 |
Accrued self-insurance reserves | 9,297 | 9,537 |
Other | 33,865 | 25,573 |
Total other current liabilities | $ 108,481 | $ 92,696 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Other non-current liabilities (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Inventory Disclosure [Abstract] | ||
Deferred benefit from New Market Tax Credit transactions | $ 15,717 | $ 26,458 |
Retirement plan obligations | 7,633 | 7,633 |
Deferred compensation plan | 11,743 | 10,408 |
Other | 30,552 | 32,683 |
Total other non-current liabilities | $ 65,645 | $ 77,182 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 11,750 | |
Estimated Fair Value | 11,884 | |
Municipal and Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,750 | $ 12,481 |
Gross Unrealized Gains | 152 | 59 |
Gross Unrealized Losses | 18 | 108 |
Estimated Fair Value | $ 11,884 | $ 12,432 |
Financial Instruments (Details
Financial Instruments (Details 2) $ in Thousands | Nov. 30, 2019USD ($) |
Amortized Cost | |
Due within one year | $ 835 |
Due after one year through five years | 8,581 |
Due after five years through 10 years | 2,259 |
Due after 10 years through 15 years | 0 |
Due beyond 15 years | 75 |
Total | 11,750 |
Estimated Fair Value | |
Due within one year | 837 |
Due after one year through five years | 8,710 |
Due after five years through 10 years | 2,262 |
Due after 10 years through 15 years | 0 |
Due beyond 15 years | 75 |
Total | $ 11,884 |
Financial Instruments (Detail_2
Financial Instruments (Details 3) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 02, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 2,680 | $ 2,015 |
Commercial paper | 500 | 300 |
Municipal and corporate bonds | 12,384 | 12,432 |
Foreign currency forward/option contract | 69 | 470 |
Interest rate swap contract | 16 | |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 2,680 | 2,015 |
Commercial paper | 0 | 0 |
Municipal and corporate bonds | 0 | 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 | 500 | 300 |
Municipal and corporate bonds | 12,384 | 12,432 |
Foreign currency forward/option contract | 69 | $ 470 |
Interest rate swap contract | $ 16 |
Financial Instruments (Detail_3
Financial Instruments (Details Textual) - Designated as Hedging Instrument $ in Millions | Nov. 30, 2019USD ($) |
Interest Rate Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 85 |
Foreign Exchange Forward | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 24.7 |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Nov. 30, 2019 | Mar. 02, 2019 | |
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | $ 185,832 | $ 180,956 |
Goodwill adjustments for purchase accounting | 6,267 | |
Foreign currency translation | (56) | (1,391) |
Goodwill, Ending | 185,776 | 185,832 |
Architectural Glass | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 25,709 | 25,971 |
Goodwill adjustments for purchase accounting | 0 | |
Foreign currency translation | (103) | (262) |
Goodwill, Ending | 25,606 | 25,709 |
Architectural Framing Systems | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 148,446 | 143,308 |
Goodwill adjustments for purchase accounting | 6,267 | |
Foreign currency translation | 47 | (1,129) |
Goodwill, Ending | 148,493 | 148,446 |
Architectural Services | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 1,120 | 1,120 |
Goodwill adjustments for purchase accounting | 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 |
Goodwill adjustments for purchase accounting | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, Ending | $ 10,557 | $ 10,557 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 02, 2019 | Nov. 30, 2019 | |
Schedule of finite lived identifiable intangible assets | ||
Gross Carrying Amount | $ 164,513 | $ 161,271 |
Accumulated Amortization | (58,271) | (63,840) |
Foreign Currency Translation | (3,428) | (94) |
Net | 102,814 | 97,337 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | (3,141) | |
Impairment of Intangible Assets (Excluding Goodwill) | (3,141) | |
Intangible Assets, Gross (Excluding Goodwill) | 213,591 | 206,692 |
Intangible Assets Accumulated Amortization | (58,271) | (63,840) |
Intangible Assets Foreign Currency Translation | (3,944) | (73) |
Intangible Assets, Net (Excluding Goodwill) | 148,235 | 142,779 |
Customer relationships | ||
Schedule of finite lived identifiable intangible assets | ||
Gross Carrying Amount | 122,816 | 120,238 |
Accumulated Amortization | (26,637) | (31,566) |
Foreign Currency Translation | (2,578) | (20) |
Net | 93,601 | 88,652 |
Other intangibles | ||
Schedule of finite lived identifiable intangible assets | ||
Gross Carrying Amount | 41,697 | 41,033 |
Accumulated Amortization | (31,634) | (32,274) |
Foreign Currency Translation | (850) | (74) |
Net | 9,213 | 8,685 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 49,078 | 45,421 |
Indefinite Lived Identifiable Intangible Assets, Foreign Currency Translation Adjustments | (516) | 21 |
Indefinite-lived Intangible Assets (Excluding Goodwill), Net of translation adjustments | $ 45,421 | $ 45,442 |
Goodwill and Other Identifiab_5
Goodwill and Other Identifiable Intangible Assets (Details 2) $ in Thousands | Nov. 30, 2019USD ($) |
Schedule of estimated future amortization expense for identifiable intangible assets | |
Estimated amortization expense, Remainder of Fiscal 2018 | $ 1,982 |
Estimated amortization expense, Fiscal 2019 | 7,921 |
Estimated amortization expense, Fiscal 2020 | 7,915 |
Estimated amortization expense, Fiscal 2021 | 7,750 |
Estimated amortization expense, Fiscal 2022 | $ 7,563 |
Goodwill and Other Identifiab_6
Goodwill and Other Identifiable Intangible Assets (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Goodwill and Other Identifiable Intangible Assets (Textual) [Abstract] | ||
Amortization expense on identifiable intangible assets | $ 5.7 | $ 10.5 |
Debt (Details)
Debt (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2019USD ($) | Dec. 01, 2018USD ($) | Nov. 30, 2019CAD ($) | Nov. 30, 2019USD ($) | Mar. 02, 2019USD ($) | |
Line of Credit Facility [Line Items] | |||||
Term Loan | $ 150,000,000 | ||||
Interest payments | $ 7,300,000 | $ 7,200,000 | |||
Letter of credit | |||||
Line of Credit Facility [Line Items] | |||||
Debt | 24,700,000 | ||||
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Total debt outstanding | 251,300,000 | $ 245,800,000 | |||
Maximum borrowing capacity | $ 12 | 235,000,000 | |||
Outstanding borrowings | $ 0 | 80,500,000 | $ 225,000,000 | ||
Industrial Revenue Bonds | |||||
Line of Credit Facility [Line Items] | |||||
Debt | 20,400,000 | ||||
Canada | Industrial Revenue Bonds | |||||
Line of Credit Facility [Line Items] | |||||
Debt | $ 400,000 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2019 | Dec. 01, 2018 | |
Guarantees and warranties | ||
Balance at beginning of period | $ 16,737 | $ 22,517 |
Additional accruals | 5,996 | 3,437 |
Claims paid | (7,807) | (8,398) |
Balance at end of period | $ 14,926 | $ 17,556 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details 2) | 9 Months Ended |
Nov. 30, 2019USD ($) | |
Income Tax Contingency [Line Items] | |
Proceeds received | $ 26,500 |
Deferred costs | 5,600 |
Net benefit | 20,900 |
October 2020 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 10,700 |
Deferred costs | 3,000 |
Net benefit | 7,700 |
May 2023 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 6,000 |
Deferred costs | 900 |
Net benefit | 5,100 |
July 2025 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 6,600 |
Deferred costs | 900 |
Net benefit | 5,700 |
August 2025 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 3,200 |
Deferred costs | 800 |
Net benefit | $ 2,400 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2019 | Mar. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Face value of performance bonds | $ 833,900 | |
Companies Backlog Related to Sales | 432,600 | |
Line of Credit Facility [Line Items] | ||
Project related liability | 47,600 | $ 42,800 |
Project Related Liability QTD | 14,700 | |
Insurance receivable | 15,000 | $ 0 |
Purchase obligations | 146,000 | |
Industrial Revenue Bonds | ||
Line of Credit Facility [Line Items] | ||
Debt | $ 20,400 |
Share-Based Compensation (Detai
Share-Based Compensation (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2019 | Jun. 02, 2018 | Nov. 30, 2019 | |
Award transactions on stock options | |||
Outstanding, Beginning | 100,341 | ||
Outstanding shares awards exercised | (19,000) | ||
Outstanding, Ending | 100,341 | 100,341 | |
Award transactions on stock options, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, Beginning | $ 8.34 | ||
Weighted average exercise price, Awards exercised | 0 | ||
Weighted average exercise price, Ending | $ 8.34 | $ 8.34 | |
Weighted average remaining contractual life, Outstanding | 1 year 9 months 18 days | ||
Aggregate intrinsic value, Outstanding | $ 3,000,196 | $ 3,000,196 | |
Deferred Compensation, Share-based Payments [Member] | |||
Award transactions on stock options | |||
Outstanding shares awards exercised | 0 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details 2) | 9 Months Ended |
Nov. 30, 2019$ / sharesshares | |
Nonvested share award transactions | |
Nonvested Number, Beginning | shares | 286,613 |
Number of shares, Granted | shares | 125,571 |
Number of shares, Vested | shares | (128,333) |
Number of shares, Canceled | shares | (3,000) |
Nonvested Number, Ending | shares | 280,851 |
Nonvested share award transactions, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, Beginning | $ / shares | $ 47 |
Weighted average grant date fair value, Granted | $ / shares | 39.53 |
Weighted average grant date fair value, Vested | $ / shares | 49 |
Weighted average grant date fair value, Canceled | $ / shares | 43.08 |
Weighted average grant date fair value, Ending | $ / shares | $ 42.78 |
Share-Based Compensation (Det_3
Share-Based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2019 | Nov. 30, 2019 | Dec. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Noncash Expense | $ 4,617 | $ 4,724 | |
Cash proceeds from exercise of stock options | 200 | ||
Aggregate intrinsic value of securities | $ 600 | ||
Total unrecognized compensation cost related to nonvested share | $ 6,900 | 6,900 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period, Nonvested | 20 months | ||
Total fair value of shares vested | $ 5,100 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019USD ($) | Dec. 01, 2018USD ($) | Nov. 30, 2019USD ($)plan | Dec. 01, 2018USD ($) | |
Retirement Benefits [Abstract] | ||||
Number of defined-benefit pension plans | plan | 2 | |||
Components of net periodic benefit cost | ||||
Interest cost | $ 123 | $ 127 | $ 369 | $ 381 |
Expected return on assets | (46) | (10) | (138) | (30) |
Amortization of unrecognized net loss | 55 | 57 | 165 | 171 |
Net periodic benefit cost | $ 132 | $ 174 | $ 396 | $ 522 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Nov. 30, 2019 | Mar. 02, 2019 |
Income Tax Disclosure [Abstract] | ||
Liability for uncertain tax positions, current and noncurrent | $ 5.2 | $ 5.1 |
Liability for unrecognized tax benefit, expected decrease | $ 0.4 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Reconciliation of basic and diluted earnings per share | ||||
Basic earnings per share – weighted average common shares outstanding | 26,432 | 27,836 | 26,481 | 28,030 |
Weighted average effect of nonvested share grants and assumed exercise of stock options | 318 | 320 | 295 | 274 |
Diluted earnings per share – weighted average common shares and potential common shares outstanding | 26,750 | 28,156 | 26,776 | 28,304 |
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) | 152 | 170 | 152 | 92 |
Segment Information Segment Inf
Segment Information Segment Information (Details Textual) | 9 Months Ended |
Nov. 30, 2019SegmentReportable_Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | Segment | 4 |
Number of Operating Segments | Reportable_Segment | 6 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2019 | Dec. 01, 2018 | Nov. 30, 2019 | Dec. 01, 2018 | |
Sales and operating income data | ||||
Net sales | $ 337,916 | $ 357,718 | $ 1,050,340 | $ 1,056,382 |
Operating income (loss) | 21,594 | 31,408 | 72,210 | 82,062 |
Architectural Framing Systems | ||||
Sales and operating income data | ||||
Net sales | 165,517 | 181,306 | 533,432 | 550,193 |
Operating income (loss) | 6,345 | 12,903 | 34,141 | 43,554 |
Architectural Glass | ||||
Sales and operating income data | ||||
Net sales | 89,433 | 98,524 | 288,862 | 263,533 |
Operating income (loss) | 4,092 | 5,851 | 16,951 | 9,168 |
Architectural Services | ||||
Sales and operating income data | ||||
Net sales | 69,043 | 72,828 | 195,787 | 220,051 |
Operating income (loss) | 6,533 | 8,659 | 15,082 | 21,435 |
Large-Scale Optical | ||||
Sales and operating income data | ||||
Net sales | 24,405 | 23,377 | 66,449 | 64,522 |
Operating income (loss) | 6,754 | 6,628 | 15,561 | 15,845 |
Intersegment eliminations | ||||
Sales and operating income data | ||||
Net sales | (10,482) | (18,317) | (34,190) | (41,917) |
Corporate and other | ||||
Sales and operating income data | ||||
Operating income (loss) | $ (2,130) | $ (2,633) | $ (9,525) | $ (7,940) |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 30, 2019 | Nov. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,445 | $ 10,308 |
Short-term lease cost | 427 | 1,606 |
Variable lease cost | 843 | 2,223 |
Total lease cost | $ 4,715 | $ 14,137 |
Leases (Details 1)
Leases (Details 1) $ in Thousands | 9 Months Ended |
Nov. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 10,335 |
Lease assets obtained in exchange for new operating lease liabilities | $ 15,948 |
Weighted-average remaining lease term - operating leases | 5 years 10 months 24 days |
Weighted-average discount rate - operating leases | 3.57% |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Thousands | Nov. 30, 2019 | Mar. 03, 2019 |
Leases [Abstract] | ||
Remainder of Fiscal 2020 | $ 3,366 | |
Fiscal 2021 | 12,880 | |
Fiscal 2022 | 11,256 | |
Fiscal 2023 | 10,307 | |
Fiscal 2024 | 8,147 | |
Fiscal 2025 | 6,290 | |
Thereafter | 12,357 | |
Total lease payments | 64,603 | |
Less: Amounts representing interest | (6,695) | |
Present value of lease liabilities | $ 57,908 | $ 50,000 |
Leases (Details 3)
Leases (Details 3) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 30, 2019USD ($) | Nov. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lease cost | $ 4,715 | $ 14,137 |
Lease payments | $ 64,603 | $ 64,603 |
Leases (Details 4)
Leases (Details 4) $ in Thousands | Mar. 02, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 14,888 |
2021 | 11,787 |
2022 | 9,669 |
2023 | 8,772 |
2024 | 6,735 |
Thereafter | 16,806 |
Total | $ 68,657 |