Cover Page
Cover Page - shares | 9 Months Ended | |
Nov. 28, 2020 | Jan. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 28, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-6365 | |
Entity Registrant Name | APOGEE ENTERPRISES, INC. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-0919654 | |
Entity Address, Address Line One | 4400 West 78th Street, Suite 520 | |
Entity Address, City or Town | Minneapolis | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55435 | |
City Area Code | 952 | |
Local Phone Number | 835-1874 | |
Title of 12(b) Security | Common stock, par value $0.33 1/3 per share | |
Trading Symbol | APOG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,007,703 | |
Entity Central Index Key | 0000006845 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --02-27 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Current assets | ||
Cash and cash equivalents | $ 55,413 | $ 14,952 |
Receivables, net | 172,877 | 196,806 |
Inventories | 73,815 | 71,089 |
Costs and earnings on contracts in excess of billings | 29,141 | 73,582 |
Other current assets | 14,389 | 25,481 |
Total current assets | 345,635 | 381,910 |
Property, plant and equipment, net | 302,082 | 324,386 |
Operating lease right-of-use assets | 62,950 | 52,892 |
Goodwill | 192,883 | 185,516 |
Intangible assets | 136,843 | 140,191 |
Other non-current assets | 45,589 | 44,096 |
Total assets | 1,085,982 | 1,128,991 |
Current liabilities | ||
Accounts payable | 69,719 | 69,056 |
Accrued payroll and related benefits | 40,170 | 40,119 |
Billings on contracts in excess of costs and earnings | 25,945 | 32,696 |
Operating lease liabilities | 12,098 | 11,272 |
Current portion of debt | 2,000 | 5,400 |
Other current liabilities | 61,768 | 118,314 |
Total current liabilities | 211,700 | 276,857 |
Long-term debt | 166,463 | 212,500 |
Non-current operating lease liabilities | 53,122 | 43,163 |
Non-current self-insurance reserves | 26,085 | 22,831 |
Other non-current liabilities | 81,269 | 56,862 |
Shareholders' equity | ||
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 25,962,041 and 26,443,166 respectively | 8,654 | 8,814 |
Additional paid-in capital | 155,974 | 154,016 |
Retained earnings | 414,749 | 388,010 |
Common stock held in trust | (183) | (685) |
Deferred compensation obligations | 183 | 685 |
Accumulated other comprehensive loss | (32,034) | (34,062) |
Total shareholders’ equity | 547,343 | 516,778 |
Total liabilities and shareholders’ equity | $ 1,085,982 | $ 1,128,991 |
Common Stock, Par or Stated Value Per Share | $ 0.33 | $ 0.33 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Outstanding | 25,962,041 | 26,443,166 |
Common Stock, Shares, Issued | 25,962,041 | 26,443,166 |
Consolidated Results of Operati
Consolidated Results of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 313,583 | $ 337,916 | $ 922,162 | $ 1,050,340 |
Cost of sales | 243,998 | 263,606 | 716,139 | 808,856 |
Gross profit | 69,585 | 74,310 | 206,023 | 241,484 |
Selling, general and administrative expenses | 19,835 | 52,716 | 126,590 | 169,274 |
Operating income | 49,750 | 21,594 | 79,433 | 72,210 |
Interest expense, net | 1,502 | 1,995 | 4,240 | 7,176 |
Other income, net | 472 | 231 | 684 | 599 |
Earnings before income taxes | 48,720 | 19,830 | 75,877 | 65,633 |
Income tax expense | 11,447 | 4,596 | 18,070 | 15,677 |
Net earnings | $ 37,273 | $ 15,234 | $ 57,807 | $ 49,956 |
Earnings per share - basic | ||||
Earnings per share - basic | $ 1.44 | $ 0.58 | $ 2.22 | $ 1.89 |
Earnings per share - diluted | ||||
Earnings per share - diluted | $ 1.42 | $ 0.57 | $ 2.19 | $ 1.87 |
Weighted average basic shares outstanding | 25,883 | 26,432 | 26,068 | 26,481 |
Weighted average diluted shares outstanding | 26,225 | 26,750 | 26,350 | 26,776 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 37,273 | $ 15,234 | $ 57,807 | $ 49,956 |
Other comprehensive earnings (loss): | ||||
Unrealized (loss) gain on marketable securities, net of $—, $(11), $39 and $38 of tax (benefit) expense, respectively | (2) | (44) | 145 | 145 |
Unrealized gain on derivative instruments, net of $90, $119, $305 and $146 of tax expense, respectively | 294 | 387 | 997 | 476 |
Foreign currency translation adjustments | 899 | (491) | 887 | (586) |
Other comprehensive earnings (loss) | 1,191 | (148) | 2,029 | 35 |
Total comprehensive earnings | 38,464 | 15,086 | 59,836 | 49,991 |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | 0 | (11) | 39 | 38 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 90 | $ 119 | $ 305 | $ 146 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 28, 2020 | Nov. 30, 2019 | |
Operating Activities | ||
Net earnings | $ 57,807 | $ 49,956 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 38,000 | 34,681 |
Share-based compensation | 6,163 | 4,617 |
Deferred income taxes | 5,012 | 10,088 |
Gain on disposal of assets | (19,346) | (623) |
Noncash lease expense | 9,531 | 8,993 |
Other, net | (69) | (2,007) |
Changes in operating assets and liabilities: | ||
Receivables | 24,153 | (5,288) |
Inventories | (2,722) | 2,474 |
Costs and earnings on contracts in excess of billings | (44,501) | 17,156 |
Accounts payable and accrued expenses | (43,915) | (22,457) |
Billings on contracts in excess of costs and earnings | (6,981) | 4,901 |
Refundable and accrued income taxes | 12,424 | (6,159) |
Operating lease liability | (9,168) | (7,468) |
Other | 5,122 | (951) |
Net cash provided by operating activities | 120,512 | 53,601 |
Investing Activities | ||
Capital expenditures | (17,116) | (41,176) |
Proceeds from sales of property, plant and equipment | 23,724 | 591 |
Other | (1,090) | (857) |
Net cash provided (used) by investing activities | 5,518 | (41,442) |
Financing Activities | ||
Borrowings on line of credit | 193,332 | 108,000 |
(Repayment) borrowings on debt | (5,400) | 150,000 |
Payments on line of credit | 237,500 | 252,500 |
Repurchase and retirement of common stock | 20,731 | 20,010 |
Dividends paid | (14,546) | (13,808) |
Other | (853) | (2,584) |
Net cash used by financing activities | (85,698) | (30,902) |
Increase (decrease) in cash and cash equivalents | 40,332 | (18,743) |
Effect of exchange rates on cash | 129 | 32 |
Cash, cash equivalents and restricted cash at beginning of year | 14,952 | 29,241 |
Cash, cash equivalents and restricted cash at end of period | 55,413 | 10,530 |
Noncash Activity | ||
Capital expenditures in accounts payable | $ 684 | $ 1,205 |
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. 02, 2019 | 27,015 | ||||||
Beginning balance at Mar. 02, 2019 | $ 496,317 | $ 9,005 | $ 151,842 | $ 367,597 | $ (755) | $ 755 | $ (32,127) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 15,443 | 15,443 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 181 | 181 | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 5 | 5 | |||||
Foreign currency translation adjustments | $ (2,560) | (2,560) | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 79 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 40 | 26 | 14 | (12) | 12 | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 1,618 | 1,618 | |||||
Share repurchases (in shares) | (532) | ||||||
Share repurchases | $ (20,010) | (177) | (3,051) | (16,782) | |||
Stock Repurchased and Retired During Period, Shares | (32) | ||||||
Stock Repurchased and Retired During Period, Value | $ (1,460) | (11) | (183) | (1,266) | |||
Dividends, Common Stock, Cash | $ (4,598) | (4,598) | |||||
Ending balance (in shares) at Jun. 01, 2019 | 26,530 | ||||||
Ending balance at Jun. 01, 2019 | $ 484,976 | 8,843 | 150,240 | 360,394 | (767) | 767 | (34,501) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 47 | ||||||
Tax expense (benefit) on foreign currency hedge | $ 2 | ||||||
Beginning balance (in shares) at Mar. 02, 2019 | 27,015 | ||||||
Beginning balance at Mar. 02, 2019 | $ 496,317 | 9,005 | 151,842 | 367,597 | (755) | 755 | (32,127) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 49,956 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 145 | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | $ 476 | ||||||
Ending balance (in shares) at Nov. 30, 2019 | 26,553 | ||||||
Ending balance at Nov. 30, 2019 | $ 514,979 | 8,851 | 153,188 | 385,032 | (675) | 675 | (32,092) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 38 | ||||||
Tax expense (benefit) on foreign currency hedge | $ 146 | ||||||
Beginning balance (in shares) at Jun. 01, 2019 | 26,530 | ||||||
Beginning balance at Jun. 01, 2019 | $ 484,976 | 8,843 | 150,240 | 360,394 | (767) | 767 | (34,501) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 19,279 | 19,279 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 8 | 8 | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 84 | 84 | |||||
Foreign currency translation adjustments | $ 2,465 | 2,465 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 44 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 42 | 15 | 27 | (11) | 11 | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 1,582 | 1,582 | |||||
Stock Repurchased and Retired During Period, Shares | (20) | ||||||
Stock Repurchased and Retired During Period, Value | $ 750 | 7 | 114 | 629 | |||
Dividends, Common Stock, Cash | $ (4,605) | (4,605) | |||||
Ending balance (in shares) at Aug. 31, 2019 | 26,554 | ||||||
Ending balance at Aug. 31, 2019 | $ 503,081 | 8,851 | 151,735 | 374,439 | (778) | 778 | (31,944) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 2 | ||||||
Tax expense (benefit) on foreign currency hedge | 25 | ||||||
Net earnings | 15,234 | 15,234 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | (44) | (44) | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 387 | 387 | |||||
Foreign currency translation adjustments | $ (491) | (491) | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | (1) | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 44 | 1 | 43 | 103 | (103) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 1,417 | 1,417 | |||||
Share repurchases (in shares) | 0 | ||||||
Stock Repurchased and Retired During Period, Value | $ 44 | 1 | 7 | 36 | |||
Dividends, Common Stock, Cash | $ (4,605) | (4,605) | |||||
Ending balance (in shares) at Nov. 30, 2019 | 26,553 | ||||||
Ending balance at Nov. 30, 2019 | $ 514,979 | 8,851 | 153,188 | 385,032 | (675) | 675 | (32,092) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | (11) | ||||||
Tax expense (benefit) on foreign currency hedge | $ 119 | ||||||
Beginning balance (in shares) at Feb. 29, 2020 | 26,443 | ||||||
Beginning balance at Feb. 29, 2020 | $ 516,778 | 8,814 | 154,016 | 388,010 | (685) | 685 | (34,062) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 2,876 | 2,876 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 97 | 97 | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | (617) | (617) | |||||
Foreign currency translation adjustments | $ (6,151) | (6,151) | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 183 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 23 | 62 | (39) | (11) | 11 | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 1,406 | 1,406 | |||||
Share repurchases (in shares) | (231) | ||||||
Share repurchases | $ (4,731) | (77) | (1,370) | (3,284) | |||
Stock Repurchased and Retired During Period, Shares | (26) | ||||||
Stock Repurchased and Retired During Period, Value | $ (665) | (9) | (151) | (505) | |||
Dividends, Common Stock, Cash | $ (4,872) | (4,872) | |||||
Ending balance (in shares) at May. 30, 2020 | 26,369 | ||||||
Ending balance at May. 30, 2020 | $ 504,144 | 8,790 | 153,862 | 382,225 | (696) | 696 | (40,733) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 26 | ||||||
Tax expense (benefit) on foreign currency hedge | $ (189) | ||||||
Beginning balance (in shares) at Feb. 29, 2020 | 26,443 | ||||||
Beginning balance at Feb. 29, 2020 | $ 516,778 | 8,814 | 154,016 | 388,010 | (685) | 685 | (34,062) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 57,807 | ||||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 145 | ||||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | $ 997 | ||||||
Ending balance (in shares) at Nov. 28, 2020 | 25,962 | ||||||
Ending balance at Nov. 28, 2020 | $ 547,343 | 8,654 | 155,974 | 414,749 | (183) | 183 | (32,034) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 39 | ||||||
Tax expense (benefit) on foreign currency hedge | $ 305 | ||||||
Beginning balance (in shares) at May. 30, 2020 | 26,369 | ||||||
Beginning balance at May. 30, 2020 | $ 504,144 | 8,790 | 153,862 | 382,225 | (696) | 696 | (40,733) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 17,658 | 17,658 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | 50 | 50 | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 1,319 | 1,319 | |||||
Foreign currency translation adjustments | $ 6,139 | 6,139 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 121 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 18 | 41 | (23) | (11) | 11 | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 2,256 | 2,256 | |||||
Stock Repurchased and Retired During Period, Shares | (23) | ||||||
Stock Repurchased and Retired During Period, Value | $ 537 | 8 | 139 | 390 | |||
Dividends, Common Stock, Cash | $ (4,879) | (4,879) | |||||
Ending balance (in shares) at Aug. 29, 2020 | 26,467 | ||||||
Ending balance at Aug. 29, 2020 | $ 526,168 | 8,823 | 155,956 | 394,614 | (707) | 707 | (33,225) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 13 | ||||||
Tax expense (benefit) on foreign currency hedge | 404 | ||||||
Net earnings | 37,273 | 37,273 | |||||
Unrealized gain (loss) on marketable securities, net of tax expense (benefit) | (2) | (2) | |||||
Unrealized gain (loss) on foreign currency hedge, net of tax expense (benefit) | 294 | 294 | |||||
Foreign currency translation adjustments | $ 899 | 899 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 10 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 18 | 3 | 15 | 524 | (524) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 2,501 | 2,501 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 127 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 1,456 | 42 | 1,414 | ||||
Share repurchases (in shares) | (620) | ||||||
Share repurchases | $ (16,000) | (207) | (3,781) | (12,012) | |||
Stock Repurchased and Retired During Period, Shares | (22) | ||||||
Stock Repurchased and Retired During Period, Value | $ 469 | 7 | 131 | 331 | |||
Dividends, Common Stock, Cash | $ (4,795) | (4,795) | |||||
Ending balance (in shares) at Nov. 28, 2020 | 25,962 | ||||||
Ending balance at Nov. 28, 2020 | $ 547,343 | $ 8,654 | $ 155,974 | $ 414,749 | $ (183) | $ 183 | $ (32,034) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Tax expense (benefit) on marketable securities | 0 | ||||||
Tax expense (benefit) on foreign currency hedge | $ 90 |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, Canada, Brazil and other international jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years prior to fiscal 2017, or state and local income tax examinations for years prior to fiscal 2013. The Company is not currently under U.S. federal examination for years subsequent to fiscal year 2016, and there is limited audit activity of the Company’s income tax returns in U.S. state jurisdictions or international jurisdictions. The total liability for unrecognized tax benefits was $4.3 million and $4.1 million at November 28, 2020 and February 29, 2020, respectively. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. The total liability for unrecognized tax benefits is expected to decrease by approximately $0.4 million during the next 12 months due to lapsing of statutes. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Nov. 28, 2020 | Feb. 29, 2020 |
Income Tax Disclosure [Abstract] | ||
Liability for uncertain tax positions, current and noncurrent | $ 4.3 | $ 4.1 |
Liability for unrecognized tax benefit, expected decrease | $ 0.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements of Apogee Enterprises, Inc. (we, us, our or the Company) have been prepared in accordance with accounting principles generally accepted in the United States. The information included in this Form 10-Q should be read in conjunction with the Company’s Form 10-K for the year ended February 29, 2020. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly and year to date operating results are reflected herein and are of a normal, recurring nature. The results of operations for the three- and nine-month periods ended November 28, 2020 are not necessarily indicative of the results to be expected for the full year. COVID-19 considerations The ongoing COVID-19 pandemic continues to cause volatility and uncertainty in global markets impacting worldwide economic activity. We have experienced some delays in commercial construction projects and orders as a result of COVID-19. In our Architectural Glass and Architectural Framing segments, orders have been delayed or have slowed, as customers and end markets face some uncertainty and delays in timing of work. In our Architectural Services segment, some construction site closures or project delays have occurred, and job sites have had to adjust to increased physical distancing and health-related precautions. Within our Large-Scale Optical (LSO) segment, most customers reopened and the segment's two manufacturing locations resumed normal operations during the latter part of the second quarter, after being shutdown for most of the first and second quarters due to governmental orders. We have also been impacted by quarantine-related absenteeism among our workforce, resulting in labor and capacity constraints at some of our facilities. The extent to which COVID-19 will continue to impact our business will depend on future developments and public health advancements, which have been buoyed recently by the commencement of vaccine production and distribution. In response to COVID-19, we have implemented a variety of countermeasures to promote the health and safety of our employees during this pandemic, including health screening, physical distancing practices, enhanced cleaning, use of personal protective equipment, business travel restrictions, and remote work capabilities, in addition to quarantine-related paid leave and other employee assistance programs. Adoption of new accounting standards At the beginning of fiscal 2021, we adopted the guidance in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for a new impairment model on financial instruments which is based on expected credit losses, which was applied following a modified retrospective approach. Additionally, the new guidance makes targeted improvements to the impairment model for certain available-for-sale debt securities, including eliminating the concept of "other than temporary" from that model. The portion of the guidance related to available-for-sale debt securities was adopted following a prospective approach. The adoption of this ASU did not have a significant impact on earnings or financial condition. Refer to additional disclosures in Notes 2 and 4. Subsequent events We have evaluated subsequent events for potential recognition and disclosure through the date of this filing. Subsequent to the end of the quarter, we announced the election of our new Chief Executive Officer, Ty R. Silberhorn, and entered into an employment agreement with him, effective January 4, 2021. Mr. Silberhorn replaces, Joseph F. Puishys, who announced his retirement, as an employee of the Company, in September 2020, effective January 4, 2021. |
Revenue, Receivables and Contra
Revenue, Receivables and Contract Assets and Liabilities | 9 Months Ended |
Nov. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Receivables and Contract Assets and Liabilities | Revenue, Receivables and Contract Assets and Liabilities Revenue The following table disaggregates total revenue by timing of recognition (see Note 12 for disclosure of revenue by segment): Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Recognized at shipment $ 129,132 $ 153,093 $ 379,292 $ 472,695 Recognized over time 184,451 184,823 542,870 577,645 Total $ 313,583 $ 337,916 $ 922,162 $ 1,050,340 Receivables Receivables reflected in the financial statements represent the net amount expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor, recent payment history, current and forecast economic conditions and other relevant factors. Upon billing, aging of receivables is monitored until collection. An account is considered current when it is within agreed upon payment terms. An account is written off when it is determined that the asset is no longer collectible. Retainage on construction contracts represents amounts withheld by our customers on long-term projects until the project reaches a level of completion where amounts are released. (In thousands) November 28, 2020 February 29, 2020 Trade accounts $ 122,959 $ 141,126 Construction contracts 9,727 20,808 Contract retainage 42,053 37,341 Total receivables 174,739 199,275 Less: allowance for credit losses (1,862) (2,469) Net receivables $ 172,877 $ 196,806 The following table summarizes the activity in the allowance for credit losses: (In thousands) November 28, 2020 Beginning balance $ 2,469 Additions charged to costs and expenses 325 Deductions from allowance, net of recoveries (884) Other changes (1) (48) Ending balance $ 1,862 (1) Result of foreign currency effects Contract assets and liabilities Contract assets consist of retainage, costs and earnings in excess of billings and other unbilled amounts typically generated when revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of billings in excess of costs and earnings and other deferred revenue on contracts. Retainage is classified within receivables and deferred revenue is classified within other current liabilities on our consolidated balance sheets. The time period between when performance obligations are complete and when payment is due is not significant. In certain of our businesses that recognize revenue over time, progress billings follow an agreed-upon schedule of values, and retainage is withheld by the customer until the project reaches a level of completion where amounts are released. (In thousands) November 28, 2020 February 29, 2020 Contract assets $ 71,194 $ 110,923 Contract liabilities 27,965 35,954 The decrease in contract assets was mainly due to a reduction in costs and earnings in excess of billings, which is driven by the settlement of matters related to a legacy EFCO project, as well as the timing of projects. The change in contract liabilities was due to timing of project activity within our businesses that operate under long-term contracts. Other contract-related disclosures Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Revenue recognized related to contract liabilities from prior year-end $ 2,044 $ 4,589 $ 16,239 $ 22,044 Revenue recognized related to prior satisfaction of performance obligations 4,016 1,776 10,545 5,298 Some of our contracts have an expected duration of longer than a year, with performance obligations extending over that timeframe. Generally, these contracts are in our businesses with long-term contracts which recognize revenue over time. As of November 28, 2020, the transaction price associated with unsatisfied performance obligations was approximately $901.6 million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods: (In thousands) November 28, 2020 Within one year $ 498,623 Within two years 331,219 Beyond 71,786 Total $ 901,628 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Nov. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Inventories (In thousands) November 28, 2020 February 29, 2020 Raw materials $ 43,292 $ 36,611 Work-in-process 16,337 17,520 Finished goods 14,186 16,958 Total inventories $ 73,815 $ 71,089 Other current liabilities (In thousands) November 28, 2020 February 29, 2020 Warranties $ 13,281 $ 12,822 Accrued project losses 3,297 48,962 Property and other taxes 13,078 5,952 Accrued self-insurance reserves 9,912 8,307 Other 22,200 42,271 Total other current liabilities $ 61,768 $ 118,314 Other non-current liabilities (In thousands) November 28, 2020 February 29, 2020 Deferred benefit from New Market Tax Credit transactions $ 15,717 $ 15,717 Retirement plan obligations 8,138 8,294 Deferred compensation plan 8,437 8,452 Deferred tax liabilities 20,014 7,940 Other 28,963 16,459 Total other non-current liabilities $ 81,269 $ 56,862 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Nov. 28, 2020 | |
Marketable Securities [Abstract] | |
Financial Instruments | Financial Instruments Marketable securities Through our wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), we hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated November 28, 2020 $ 12,556 $ 459 $ — $ 13,015 February 29, 2020 11,692 275 — 11,967 Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments for the purpose of providing collateral for Prism’s obligations under the reinsurance agreements. The amortized cost and estimated fair values of these bonds at November 28, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty. (In thousands) Amortized Cost Estimated Fair Value Due within one year $ 771 $ 779 Due after one year through five years 7,682 7,978 Due after five years through 10 years 3,303 3,428 Due beyond 15 years 800 830 Total $ 12,556 $ 13,015 Derivative instruments In August 2019, we entered into an interest rate swap to hedge exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. As of November 28, 2020, the interest rate swap contract had a notional value of $55 million. We periodically enter into forward purchase foreign currency cash flow hedge contracts and forward purchase aluminum hedge contracts, generally with an original maturity date of less than one year, to hedge foreign currency exchange rate risk and future purchases of aluminum in certain of our architectural businesses. As of November 28, 2020, we held foreign exchange forward contracts and aluminum forward contracts with U.S. dollar notional values of $18.7 million and $1.9 million, respectively, with the objective of reducing the exposure to fluctuations in the Canadian dollar, the Euro and the price of aluminum. These derivative instruments are recorded within our consolidated balance sheets within other current assets and liabilities. Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive income. Fair value measurements Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). We do not have any Level 3 financial assets or liabilities. (In thousands) Quoted Prices in Other Observable Inputs (Level 2) Total Fair Value November 28, 2020 Assets: Money market funds $ 27,000 $ — $ 27,000 Commercial paper — 4,300 4,300 Municipal and corporate bonds — 13,015 13,015 Cash surrender value of life insurance — 17,704 17,704 Foreign currency and aluminum forward/option contracts — 896 896 Liabilities: Deferred compensation — 14,027 14,027 Interest rate swap contract — 676 676 February 29, 2020 Assets: Money market funds $ 2,689 $ — $ 2,689 Commercial paper — 1,500 1,500 Municipal and corporate bonds — 11,967 11,967 Cash surrender value of life insurance — 16,560 16,560 Liabilities: Deferred compensation — 14,042 14,042 Foreign currency forward/option contract — 340 340 Interest rate swap contract — 561 561 Money market funds and commercial paper Fair value of money market funds was determined based on quoted prices for identical assets in active markets. Commercial paper was measured at fair value using inputs based on quoted prices for similar securities in active markets. These assets are included within cash and cash equivalents on our consolidated balance sheets. Municipal and corporate bonds Municipal and corporate bonds were measured at fair value based on market prices from recent trades of similar securities and are classified within our consolidated balance sheets as other current or other non-current assets based on maturity date. Cash surrender value of life insurance and deferred compensation Contracts insuring the lives of certain employees who are eligible to participate in certain non-qualified pension and deferred compensation plans are held in trust. Cash surrender value of the contracts is based on performance measurement funds that shadow the deferral investment allocations made by participants in certain deferred compensation plans. Changes in cash surrender value are recorded in other expense. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds. Derivative instruments |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 9 Months Ended |
Nov. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets Goodwill Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that the carrying value of a reporting unit may not be recoverable. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by management on a regular basis. In the third quarter of fiscal 2021, we changed the date of our annual goodwill impairment testing from our year-end to the first day in our fiscal fourth quarter. This change results in better alignment of the annual impairment testing with our strategic and annual planning processes. This change was determined to not be material and had no impact on our current or historical consolidated financial statements. During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including a significant decline in our stock price and market capitalization, along with concerns resulting from the COVID-19 pandemic at four of our nine identified reporting units. Therefore, we performed an interim goodwill impairment evaluation as of May 30, 2020. Based on the results of the interim quantitative goodwill impairment analysis, the estimated fair value of each reporting unit exceeded its carrying value and, therefore, goodwill impairment was not indicated as of May 30, 2020. However, the estimated fair value did not exceed carrying value by a significant margin at two reporting units within the Architectural Framing Systems segment, EFCO and Sotawall, which had goodwill balances of $90.4 million and $26.7 million, respectively, at May 30, 2020. We utilized a discount rate of 11.0 percent in determining the discounted cash flows for EFCO and a discount rate of 10.4 percent in determining the discounted cash flows for Sotawall. We utilized a long-term growth rate of 3.0 percent in our fair value analysis for all reporting units. If our discount rates were to increase by 100 basis points at Sotawall and EFCO, the fair value of these reporting units would fall below carrying value, which would indicate impairment of the goodwill. Additionally, this discounted cash flow analysis is dependent upon achieving forecasted levels of revenue and profitability. If revenue or profitability were to fall below forecasted levels, or if market conditions were to decline in a material or sustained manner, impairment could be indicated at these reporting units, and potentially at other reporting units. During the third quarter, we combined two reporting units into one reporting unit, following certain structural and leadership changes at the Company, specifically within the Architectural Framing Systems segment. Within this segment, as a result of integration efforts that are ongoing, leadership over our Tubelite and Alumicor reporting units have been combined and functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the combined business. The goodwill of these individual reporting units was aggregated to the combined reporting unit. We evaluated goodwill on a qualitative basis prior to and subsequent to this change and have concluded no adjustment to the carrying value of goodwill was necessary as a result of this change. In addition, for all reporting units, no qualitative indicators of impairment were identified during the third quarter, and therefore, no interim quantitative goodwill impairment evaluation was performed. The carrying amount of goodwill attributable to each reporting segment was: (In thousands) Architectural Framing Systems Architectural Glass Architectural Services Large-Scale Total Balance at March 2, 2019 $ 148,446 $ 25,709 $ 1,120 $ 10,557 $ 185,832 Foreign currency translation (263) (53) — — (316) Balance at February 29, 2020 148,183 25,656 1,120 10,557 185,516 Adjustment (1) 6,315 — — — 6,315 Foreign currency translation 1,475 (423) — — 1,052 Balance at November 28, 2020 $ 155,973 $ 25,233 $ 1,120 $ 10,557 $ 192,883 (1) During the quarter ended May 30, 2020, we recorded a $6.3 million increase to goodwill and corresponding increase to deferred tax liabilities to correct an immaterial error related to prior periods. The error was not material to any previously reported annual or interim consolidated financial statements. Indefinite-lived intangible assets We hold intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. Similar to the change in goodwill measurement date discussed above, we historically evaluated the reasonableness of the useful life and tested indefinite-lived intangible assets for impairment annually at our year-end, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. In the third quarter of fiscal 2021, we changed the date of our annual impairment testing from our year-end to the first day in our fiscal fourth quarter. During the first quarter of fiscal 2021, we identified qualitative indicators of impairment, including deteriorating macroeconomic conditions resulting from the COVID-19 pandemic. Therefore, the Company performed a quantitative indefinite-lived intangible asset impairment evaluation as of May 30, 2020. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. If an impairment loss is recognized, the adjusted carrying amount becomes the asset's new accounting basis. Fair value is measured using the relief-from-royalty method. This method assumes the trade name or trademark has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from the asset. This method requires us to estimate the future revenue from the related asset, the appropriate royalty rate, and the weighted average cost of capital. The assessment of fair value involves significant judgment and projections about future performance. In determining the discounted future revenue in our fair value analysis, we used discount rates that are appropriate with the risks and uncertainties inherent in the respective businesses in the range of 10.9 percent to 11.5 percent, royalty rates of 1.5 to 2.0 percent, and a long-term growth rate of 3.0 percent. Based on our analysis, the fair value of each of our trade names exceeded its carrying amount and impairment was not indicated as of May 30, 2020. During the third quarter of fiscal 2021, no additional qualitative indicators of impairment were identified and therefore, no interim quantitative indefinite-lived intangible asset impairment evaluation was completed. We continue to conclude that the useful life of our indefinite-lived intangible assets is appropriate. If future revenue were to fall below forecasted levels or if market conditions were to decline in a material or sustained manner, due to COVID-19 or otherwise, impairment could be indicated on one or more of our indefinite-lived intangible assets. The gross carrying amount of other intangible assets and related accumulated amortization was: (In thousands) Gross Accumulated Foreign Net November 28, 2020 Definite-lived intangible assets: Customer relationships $ 119,647 $ (38,333) $ 1,749 $ 83,063 Other intangibles 41,293 (33,488) 174 7,979 Total definite-lived intangible assets 160,940 (71,821) 1,923 91,042 Indefinite-lived intangible assets: Trademarks 45,300 — 501 45,801 Total intangible assets $ 206,240 $ (71,821) $ 2,424 $ 136,843 February 29, 2020 Definite-lived intangible assets: Customer relationships $ 120,239 $ (33,121) $ (592) $ 86,526 Other intangibles 41,069 (32,516) (189) 8,364 Total definite-lived intangible assets 161,308 (65,637) (781) 94,890 Indefinite-lived intangible assets: Trademarks 45,421 — (120) 45,301 Total intangible assets $ 206,729 $ (65,637) $ (901) $ 140,191 Amortization expense on definite-lived intangible assets was $5.6 million and $5.7 million for the nine-month periods ended November 28, 2020 and November 30, 2019, respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At November 28, 2020, the estimated future amortization expense for definite-lived intangible assets was: (In thousands) Remainder of Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Estimated amortization expense $ 1,999 $ 7,993 $ 7,902 $ 7,571 $ 7,247 |
Debt
Debt | 9 Months Ended |
Nov. 28, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of November 28, 2020, we had a committed revolving credit facility with maximum borrowings of up to $235 million with a maturity of June 2024 and a $150 million term loan. The term loan was amended during the third quarter of fiscal 2021 to extend the maturity date to June 2024. Total debt outstanding was $168.5 million, compared to $217.9 million as of February 29, 2020. There were no outstanding borrowings under the revolving credit facility as of November 28, 2020, while there were $47.5 million in outstanding borrowings under the revolving credit facility as of February 29, 2020. Our revolving credit facility and term loan contain two financial covenants that require us to stay below a maximum debt-to-EBITDA ratio and maintain a minimum ratio of interest expense-to-EBITDA. Both ratios are computed quarterly, with EBITDA calculated on a rolling four-quarter basis. At November 28, 2020, we were in compliance with both financial covenants. Additionally, at November 28, 2020, we had a total of $18.7 million of ongoing letters of credit related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal year 2022 and reduce borrowing capacity under the revolving credit facility. At November 28, 2020, debt included $15.0 million of industrial revenue bonds that mature in fiscal years 2022 through 2043. In June 2020, a $5.4 million industrial revenue bond matured and was repaid. The fair value of the industrial revenue bonds approximated carrying value at November 28, 2020, due to the variable interest rates on these instruments. All debt would be classified as Level 2 within the fair value hierarchy described in Note 4. We also maintain two Canadian committed, revolving credit facilities totaling $25.0 million (USD). As of November 28, 2020, $3.5 million was outstanding under the facilities, while at February 29, 2020, there were no borrowings under the facilities. Interest payments were $3.7 million and $7.3 million for the nine months ended November 28, 2020 and November 30, 2019, respectively. |
Leases Leases
Leases Leases | 9 Months Ended |
Nov. 28, 2020 | |
Leases [Abstract] | |
Leases | 7. Leases We lease certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Currently, all of our lease arrangements are classified as operating leases. We elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and lease expense is recognized on a straight-line basis over the lease term. Our leases have remaining lease terms of one to ten years, some of which include renewal options that can extend the lease for up to an additional ten years at our sole discretion. We have made an accounting policy election not to record leases with an original term of 12 months or less on our consolidated balance sheet and such leases are expensed on a straight-line basis over the lease term. In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term. We have elected the practical expedient to account for lease and non lease components (e.g., common-area maintenance costs) as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We are not a lessor in any transactions. The components of lease expense were as follows: Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Operating lease cost $ 3,477 $ 3,445 $ 10,329 $ 10,308 Short-term lease cost 472 427 1,384 1,606 Variable lease cost 678 843 2,071 2,223 Total lease cost $ 4,627 $ 4,715 $ 13,784 $ 14,137 Other supplemental information related to leases was as follows: Nine Months Ended (In thousands except weighted-average data) November 28, 2020 November 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,233 $ 10,335 Lease assets obtained in exchange for new operating lease liabilities $ 19,623 $ 15,948 Weighted-average remaining lease term - operating leases 5.8 years 5.9 years Weighted-average discount rate - operating leases 3.18 % 3.57 % Future maturities of lease liabilities are as follows: (In thousands) November 28, 2020 Remainder of Fiscal 2021 $ 3,381 Fiscal 2022 13,866 Fiscal 2023 12,662 Fiscal 2024 10,740 Fiscal 2025 8,994 Fiscal 2026 7,136 Thereafter 10,078 Total lease payments 66,857 Less: Amounts representing interest (1,637) Present value of lease liabilities $ 65,220 In September 2020, we sold a building in McCook, IL used within our LSO segment for $25.1 million. The carrying value of the building was $4.3 million, and we recognized a gain on this sale of approximately $19.3 million, net of associated transaction costs, which is included as a reduction of selling, general and administrative expenses within our consolidated |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Nov. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Bond commitments In the ordinary course of business, predominantly in our Architectural Services and Architectural Framing Systems segments, we are required to provide surety or performance bonds that commit payments to our customers for any non-performance. At November 28, 2020, $1.1 billion of these types of bonds were outstanding, of which $527.8 million is in our backlog. These bonds do not have stated expiration dates. We have never been required to make payments under surety or performance bonds with respect to our existing businesses. Warranty and project-related contingencies We reserve estimated exposures on known claims, as well as on a portion of anticipated claims, for product warranty and rework cost, based on historical product liability claims as a ratio of sales. Claim costs are deducted from the accrual when paid. Factors that could have an impact on the warranty accrual in any given period include the following: changes in manufacturing quality, changes in product mix and any significant changes in sales volume. A warranty rollforward follows: Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 Balance at beginning of period $ 15,629 $ 16,737 Additional accruals 4,175 5,996 Claims paid (4,071) (7,807) Balance at end of period $ 15,733 $ 14,926 Additionally, we are subject to project management and installation-related contingencies as a result of our fixed-price material supply and installation service contracts, primarily in our Architectural Services segment and certain of our Architectural Framing Systems businesses. We manage the risk of these exposures through contract negotiations, proactive project management and insurance coverages. The liability for these types of project-related contingencies was $3.3 million and $49.0 million as of November 28, 2020 and February 29, 2020, respectively. In June 2020, we settled contract claims related to a majority of these project-related contingencies on a legacy EFCO project for an amount equal to the recorded contingency at May 30, 2020. Letters of credit At November 28, 2020, we had $18.7 million of ongoing letters of credit, all of which have been issued under our committed revolving credit facility, as discussed in Note 6. In connection with the settlement of contract claims related to a legacy EFCO project referenced above, the original project performance and payment bond related to the project was replaced, which required a $25.0 million letter of credit. The letter of credit for the replacement bond was issued outside of our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants. Purchase obligations Purchase obligations for raw material commitments and capital expenditures totaled $207.5 million as of November 28, 2020. New Markets Tax Credit (NMTC) transactions We have four separate NMTC transactions to support our operational expansion. Proceeds received from investors on these transactions are included within other non-current liabilities on our consolidated balance sheets. The NMTC arrangements are subject to 100 percent tax recapture for a period of seven years from the date of each respective transaction. Therefore, upon the termination of each arrangement, these proceeds will be recognized in earnings in exchange for the transfer of tax credits. The direct and incremental costs incurred in structuring these arrangements have been deferred and are included in other non-current assets on our consolidated balance sheets. These costs will be recognized in conjunction with the recognition of the related proceeds on each arrangement. During the construction phase, we are required to hold cash dedicated to fund each capital project which is then classified as restricted cash on our consolidated balance sheets. Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics. During the third quarter ended November 28, 2020, an NMTC transaction was settled as expected and as a result, $7.4 million of operating income was recognized as a reduction to selling, general and administrative expenses within the Architectural Glass segment. The table below provides a summary of our remaining outstanding NMTC transactions (in millions): Inception date Termination date Proceeds received Deferred costs Net benefit June 2016 June 2023 $ 6.0 $ 1.2 $ 4.8 August 2018 August 2025 6.6 1.3 5.3 September 2018 September 2025 3.2 1.0 2.2 Total $ 15.8 $ 3.5 $ 12.3 Litigation The Company is a party to various legal proceedings incidental to its normal operating activities. In particular, like others in the construction supply and services industry, the Company is routinely involved in various disputes and claims arising out of construction projects, sometimes involving significant monetary damages or product replacement. The Company is also subject to litigation arising out of areas such as employment practices, workers compensation and general liability matters. Although it is very difficult to accurately predict the outcome of any such proceedings, facts currently available indicate that no matters will result in losses that would have a material adverse effect on the results of operations, cash flows or financial condition of the Company. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Nov. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Total share-based compensation expense included in the results of operations was $6.2 million for the nine-month period ended November 28, 2020 and $4.6 million for the nine-month period ended November 30, 2019. Stock options and SARs Stock option and SAR activity for the current nine-month period is summarized as follows: Stock options and SARs Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at February 29, 2020 100,341 $ 8.34 Awards granted 660,600 23.04 Awards exercised (127,241) 11.45 Outstanding at November 28, 2020 633,700 $ 23.04 9.6 years $ 2,889,672 Vested or expected to vest at November 28, 2020 633,700 $ 23.04 9.6 years $ 2,889,672 For the nine-months ended November 28, 2020, cash proceeds from the exercise of stock options were $1.5 million and the aggregate intrinsic value of securities exercised (the amount by which the stock price on the date of exercise exceeded the stock price of the award on the date of grant) was $1.8 million. No awards were issued or exercised during the nine-months ended November 30, 2019. Nonvested shares and share units Nonvested share activity for the current nine-month period is summarized as follows: Nonvested shares and units Number of Shares and Units Weighted Average Grant Date Fair Value Nonvested at February 29, 2020 309,259 $ 40.58 Granted 342,196 20.46 Vested (140,953) 39.76 Canceled (2,059) 34.38 Nonvested at November 28, 2020 508,443 $ 27.29 At November 28, 2020, there was $8.6 million of total unrecognized compensation cost related to nonvested share and nonvested share unit awards, which is expected to be recognized over a weighted average period of approximately 25 months. The total fair value of shares vested during the nine months ended November 28, 2020 was $3.2 million. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Nov. 28, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Basic earnings per share – weighted average common shares outstanding 25,883 26,432 26,068 26,481 Weighted average effect of nonvested share grants and assumed exercise of stock options 342 318 282 295 Diluted earnings per share – weighted average common shares and potential common shares outstanding 26,225 26,750 26,350 26,776 Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) 159 152 238 152 |
Segment Information
Segment Information | 9 Months Ended |
Nov. 28, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has four reporting segments: Architectural Framing Systems, Architectural Glass, Architectural Services and LSO. • The Architectural Framing Systems segment designs, engineers, fabricates and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront and entrance systems comprising the outside skin and entrances of commercial, institutional and high-end multi-family residential buildings. • The Architectural Glass segment fabricates coated, high-performance glass used in customized window and wall systems comprising the outside skin of commercial, institutional and high-end multi-family residential buildings. • The Architectural Services segment designs, engineers, fabricates and installs the walls of glass, windows and other curtainwall products making up the outside skin of commercial and institutional buildings. • The LSO segment manufactures value-added glass and acrylic products primarily for framing and display applications. Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Net sales Architectural Framing Systems $ 136,688 $ 165,517 $ 439,779 $ 533,432 Architectural Glass 84,779 89,433 248,274 288,862 Architectural Services 76,690 69,043 213,911 195,787 Large-Scale Optical 25,267 24,405 48,438 66,449 Intersegment eliminations (9,841) (10,482) (28,240) (34,190) Net sales $ 313,583 $ 337,916 $ 922,162 $ 1,050,340 Operating income (loss) Architectural Framing Systems $ 7,218 $ 6,345 $ 26,211 $ 34,141 Architectural Glass 10,825 4,092 15,306 16,951 Architectural Services 8,558 6,533 20,470 15,082 Large-Scale Optical (1) 26,114 6,754 25,131 15,561 Corporate and other (2,965) (2,130) (7,685) (9,525) Operating income $ 49,750 $ 21,594 $ 79,433 $ 72,210 (1) LSO operating income amounts for the three- and nine-month periods ended November 28, 2020 include a $19.3 million gain on the sale-lease back of a building. Due to the varying combinations and integration of individual window, storefront and curtainwall systems, it is impractical to report product revenues generated by class of product, beyond the segment revenues currently reported. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 1 Months Ended | 9 Months Ended |
Oct. 08, 2020 | Nov. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impact of new accounting guidance | Adoption of new accounting standards At the beginning of fiscal 2021, we adopted the guidance in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The guidance provides for a new impairment model on financial instruments which is based on expected credit losses, which was applied following a modified retrospective approach. Additionally, the new guidance makes targeted improvements to the impairment model for certain available-for-sale debt securities, including eliminating the concept of "other than temporary" from that model. The portion of the guidance related to available-for-sale debt securities was adopted following a prospective approach. The adoption of this ASU did not have a significant impact on earnings or financial condition. Refer to additional disclosures in Notes 2 and 4. | |
Subsequent Events | Subsequent events We have evaluated subsequent events for potential recognition and disclosure through the date of this filing. Subsequent to the end of the quarter, we announced the election of our new Chief Executive Officer, Ty R. Silberhorn, and entered into an employment agreement with him, effective January 4, 2021. Mr. Silberhorn replaces, Joseph F. Puishys, who announced his retirement, as an employee of the Company, in September 2020, effective January 4, 2021. |
Revenue, Receivables and Cont_2
Revenue, Receivables and Contract Assets and Liabilities (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue data | The following table disaggregates total revenue by timing of recognition (see Note 12 for disclosure of revenue by segment): Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Recognized at shipment $ 129,132 $ 153,093 $ 379,292 $ 472,695 Recognized over time 184,451 184,823 542,870 577,645 Total $ 313,583 $ 337,916 $ 922,162 $ 1,050,340 |
Net receivables | (In thousands) November 28, 2020 February 29, 2020 Trade accounts $ 122,959 $ 141,126 Construction contracts 9,727 20,808 Contract retainage 42,053 37,341 Total receivables 174,739 199,275 Less: allowance for credit losses (1,862) (2,469) Net receivables $ 172,877 $ 196,806 |
Allowance for Credit Losses | The following table summarizes the activity in the allowance for credit losses: (In thousands) November 28, 2020 Beginning balance $ 2,469 Additions charged to costs and expenses 325 Deductions from allowance, net of recoveries (884) Other changes (1) (48) Ending balance $ 1,862 (1) Result of foreign currency effects |
Contract assets and liabilities | (In thousands) November 28, 2020 February 29, 2020 Contract assets $ 71,194 $ 110,923 Contract liabilities 27,965 35,954 |
Performance obligations expected to be satisfied | The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods: (In thousands) November 28, 2020 Within one year $ 498,623 Within two years 331,219 Beyond 71,786 Total $ 901,628 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Inventories (In thousands) November 28, 2020 February 29, 2020 Raw materials $ 43,292 $ 36,611 Work-in-process 16,337 17,520 Finished goods 14,186 16,958 Total inventories $ 73,815 $ 71,089 |
Other current liabilities | Other current liabilities (In thousands) November 28, 2020 February 29, 2020 Warranties $ 13,281 $ 12,822 Accrued project losses 3,297 48,962 Property and other taxes 13,078 5,952 Accrued self-insurance reserves 9,912 8,307 Other 22,200 42,271 Total other current liabilities $ 61,768 $ 118,314 |
Other non-current liabilities | Other non-current liabilities (In thousands) November 28, 2020 February 29, 2020 Deferred benefit from New Market Tax Credit transactions $ 15,717 $ 15,717 Retirement plan obligations 8,138 8,294 Deferred compensation plan 8,437 8,452 Deferred tax liabilities 20,014 7,940 Other 28,963 16,459 Total other non-current liabilities $ 81,269 $ 56,862 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Marketable Securities [Abstract] | |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investments available for sale | e hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated November 28, 2020 $ 12,556 $ 459 $ — $ 13,015 February 29, 2020 11,692 275 — 11,967 |
Schedule of amortized cost and estimated fair values of investments by contractual maturity | The amortized cost and estimated fair values of these bonds at November 28, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty. (In thousands) Amortized Cost Estimated Fair Value Due within one year $ 771 $ 779 Due after one year through five years 7,682 7,978 Due after five years through 10 years 3,303 3,428 Due beyond 15 years 800 830 Total $ 12,556 $ 13,015 |
Fair value measurements | (In thousands) Quoted Prices in Other Observable Inputs (Level 2) Total Fair Value November 28, 2020 Assets: Money market funds $ 27,000 $ — $ 27,000 Commercial paper — 4,300 4,300 Municipal and corporate bonds — 13,015 13,015 Cash surrender value of life insurance — 17,704 17,704 Foreign currency and aluminum forward/option contracts — 896 896 Liabilities: Deferred compensation — 14,027 14,027 Interest rate swap contract — 676 676 February 29, 2020 Assets: Money market funds $ 2,689 $ — $ 2,689 Commercial paper — 1,500 1,500 Municipal and corporate bonds — 11,967 11,967 Cash surrender value of life insurance — 16,560 16,560 Liabilities: Deferred compensation — 14,042 14,042 Foreign currency forward/option contract — 340 340 Interest rate swap contract — 561 561 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill attributable to each business segment | The carrying amount of goodwill attributable to each reporting segment was: (In thousands) Architectural Framing Systems Architectural Glass Architectural Services Large-Scale Total Balance at March 2, 2019 $ 148,446 $ 25,709 $ 1,120 $ 10,557 $ 185,832 Foreign currency translation (263) (53) — — (316) Balance at February 29, 2020 148,183 25,656 1,120 10,557 185,516 Adjustment (1) 6,315 — — — 6,315 Foreign currency translation 1,475 (423) — — 1,052 Balance at November 28, 2020 $ 155,973 $ 25,233 $ 1,120 $ 10,557 $ 192,883 (1) During the quarter ended May 30, 2020, we recorded a $6.3 million increase to goodwill and corresponding increase to deferred tax liabilities to correct an immaterial error related to prior periods. The error was not material to any previously reported annual or interim consolidated financial statements. |
Schedule of finite lived intangible assets | The gross carrying amount of other intangible assets and related accumulated amortization was: (In thousands) Gross Accumulated Foreign Net November 28, 2020 Definite-lived intangible assets: Customer relationships $ 119,647 $ (38,333) $ 1,749 $ 83,063 Other intangibles 41,293 (33,488) 174 7,979 Total definite-lived intangible assets 160,940 (71,821) 1,923 91,042 Indefinite-lived intangible assets: Trademarks 45,300 — 501 45,801 Total intangible assets $ 206,240 $ (71,821) $ 2,424 $ 136,843 February 29, 2020 Definite-lived intangible assets: Customer relationships $ 120,239 $ (33,121) $ (592) $ 86,526 Other intangibles 41,069 (32,516) (189) 8,364 Total definite-lived intangible assets 161,308 (65,637) (781) 94,890 Indefinite-lived intangible assets: Trademarks 45,421 — (120) 45,301 Total intangible assets $ 206,729 $ (65,637) $ (901) $ 140,191 |
Schedule of estimated future amortization expense for identifiable intangible assets | At November 28, 2020, the estimated future amortization expense for definite-lived intangible assets was: (In thousands) Remainder of Fiscal 2021 Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Estimated amortization expense $ 1,999 $ 7,993 $ 7,902 $ 7,571 $ 7,247 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease expense were as follows: Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Operating lease cost $ 3,477 $ 3,445 $ 10,329 $ 10,308 Short-term lease cost 472 427 1,384 1,606 Variable lease cost 678 843 2,071 2,223 Total lease cost $ 4,627 $ 4,715 $ 13,784 $ 14,137 Other supplemental information related to leases was as follows: Nine Months Ended (In thousands except weighted-average data) November 28, 2020 November 30, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 10,233 $ 10,335 Lease assets obtained in exchange for new operating lease liabilities $ 19,623 $ 15,948 Weighted-average remaining lease term - operating leases 5.8 years 5.9 years Weighted-average discount rate - operating leases 3.18 % 3.57 % |
Schedule of operating lease liability | Future maturities of lease liabilities are as follows: (In thousands) November 28, 2020 Remainder of Fiscal 2021 $ 3,381 Fiscal 2022 13,866 Fiscal 2023 12,662 Fiscal 2024 10,740 Fiscal 2025 8,994 Fiscal 2026 7,136 Thereafter 10,078 Total lease payments 66,857 Less: Amounts representing interest (1,637) Present value of lease liabilities $ 65,220 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and warranties | A warranty rollforward follows: Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 Balance at beginning of period $ 15,629 $ 16,737 Additional accruals 4,175 5,996 Claims paid (4,071) (7,807) Balance at end of period $ 15,733 $ 14,926 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Award transactions on stock options | Stock option and SAR activity for the current nine-month period is summarized as follows: Stock options and SARs Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at February 29, 2020 100,341 $ 8.34 Awards granted 660,600 23.04 Awards exercised (127,241) 11.45 Outstanding at November 28, 2020 633,700 $ 23.04 9.6 years $ 2,889,672 Vested or expected to vest at November 28, 2020 633,700 $ 23.04 9.6 years $ 2,889,672 |
Nonvested share award transactions | Nonvested share activity for the current nine-month period is summarized as follows: Nonvested shares and units Number of Shares and Units Weighted Average Grant Date Fair Value Nonvested at February 29, 2020 309,259 $ 40.58 Granted 342,196 20.46 Vested (140,953) 39.76 Canceled (2,059) 34.38 Nonvested at November 28, 2020 508,443 $ 27.29 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share | The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Basic earnings per share – weighted average common shares outstanding 25,883 26,432 26,068 26,481 Weighted average effect of nonvested share grants and assumed exercise of stock options 342 318 282 295 Diluted earnings per share – weighted average common shares and potential common shares outstanding 26,225 26,750 26,350 26,776 Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) 159 152 238 152 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Nov. 28, 2020 | |
Segment Reporting [Abstract] | |
Sales and operating income data | Three Months Ended Nine Months Ended (In thousands) November 28, 2020 November 30, 2019 November 28, 2020 November 30, 2019 Net sales Architectural Framing Systems $ 136,688 $ 165,517 $ 439,779 $ 533,432 Architectural Glass 84,779 89,433 248,274 288,862 Architectural Services 76,690 69,043 213,911 195,787 Large-Scale Optical 25,267 24,405 48,438 66,449 Intersegment eliminations (9,841) (10,482) (28,240) (34,190) Net sales $ 313,583 $ 337,916 $ 922,162 $ 1,050,340 Operating income (loss) Architectural Framing Systems $ 7,218 $ 6,345 $ 26,211 $ 34,141 Architectural Glass 10,825 4,092 15,306 16,951 Architectural Services 8,558 6,533 20,470 15,082 Large-Scale Optical (1) 26,114 6,754 25,131 15,561 Corporate and other (2,965) (2,130) (7,685) (9,525) Operating income $ 49,750 $ 21,594 $ 79,433 $ 72,210 |
Revenue, Receivables and Cont_3
Revenue, Receivables and Contract Assets and Liabilities Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 313,583 | $ 337,916 | $ 922,162 | $ 1,050,340 |
Revenue, Remaining Performance Obligation, Amount | 901,628 | 901,628 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-28 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 498,623 | 498,623 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-28 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 331,219 | 331,219 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-28 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 71,786 | 71,786 | ||
Recognized at shipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 129,132 | 153,093 | 379,292 | 472,695 |
Recognized over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 184,451 | $ 184,823 | $ 542,870 | $ 577,645 |
Revenue, Receivables and Cont_4
Revenue, Receivables and Contract Assets and Liabilities Accounts Receivable (Details) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 174,739 | $ 199,275 |
Less: allowance for credit losses | (1,862) | (2,469) |
Net receivables | 172,877 | 196,806 |
Trade accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 122,959 | 141,126 |
Construction contracts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 9,727 | 20,808 |
Contract retainage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 42,053 | $ 37,341 |
Revenue, Receivables and Cont_5
Revenue, Receivables and Contract Assets and Liabilities Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 28, 2020 | Feb. 29, 2020 | |
Credit Loss [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 1,862 | $ 2,469 |
Additions charged to costs and expenses | 325 | |
Deductions from allowance, net of recoveries | (884) | |
Other changes (1) | $ (48) |
Revenue, Receivables and Cont_6
Revenue, Receivables and Contract Assets and Liabilities Contract Assets & Liabilities (Details) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 71,194 | $ 110,923 |
Contract liabilities | $ 27,965 | $ 35,954 |
Revenue, Receivables and Cont_7
Revenue, Receivables and Contract Assets and Liabilities (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized related to contract liabilities from prior year-end | $ 2,044 | $ 4,589 | $ 16,239 | $ 22,044 |
Revenue recognized related to prior satisfaction of performance obligations | $ 4,016 | $ 1,776 | $ 10,545 | $ 5,298 |
Revenue, Receivables and Cont_8
Revenue, Receivables and Contract Assets and Liabilities (Details 5) $ in Thousands | Nov. 28, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 901,628 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-11-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 498,623 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-11-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 331,219 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-11-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 71,786 |
Revenue, Receivables and Cont_9
Revenue, Receivables and Contract Assets and Liabilities (Details Textual) $ in Thousands | Nov. 28, 2020USD ($) |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 901,628 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Components of inventories (Details) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 43,292 | $ 36,611 |
Work-in-process | 16,337 | 17,520 |
Finished goods | 14,186 | 16,958 |
Total inventories | $ 73,815 | $ 71,089 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Other current liabilities (Details) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Warranties | $ 13,281 | $ 12,822 |
Accrued project losses | 3,297 | 48,962 |
Property and other taxes | 13,078 | 5,952 |
Accrued self-insurance reserves | 9,912 | 8,307 |
Other | 22,200 | 42,271 |
Total other current liabilities | $ 61,768 | $ 118,314 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Other non-current liabilities (Details) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Deferred benefit from New Market Tax Credit transactions | $ 15,717 | $ 15,717 |
Retirement plan obligations | 8,138 | 8,294 |
Deferred compensation plan | 8,437 | 8,452 |
Deferred tax liabilities | 20,014 | 7,940 |
Other | 28,963 | 16,459 |
Total other non-current liabilities | $ 81,269 | $ 56,862 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 12,556 | |
Estimated Fair Value | 13,015 | |
Municipal and Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,556 | $ 11,692 |
Gross Unrealized Gains | 459 | 275 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 13,015 | $ 11,967 |
Financial Instruments (Details
Financial Instruments (Details 2) $ in Thousands | Nov. 28, 2020USD ($) |
Amortized Cost | |
Due within one year | $ 771 |
Due after one year through five years | 7,682 |
Due after five years through 10 years | 3,303 |
Due beyond 15 years | 800 |
Total | 12,556 |
Estimated Fair Value | |
Due within one year | 779 |
Due after one year through five years | 7,978 |
Due after five years through 10 years | 3,428 |
Due beyond 15 years | 830 |
Total | $ 13,015 |
Financial Instruments (Detail_2
Financial Instruments (Details 3) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 27,000 | $ 2,689 |
Commercial paper | 4,300 | 1,500 |
Municipal and corporate bonds | 13,015 | 11,967 |
Cash surrender value of life insurance | 17,704 | 16,560 |
Deferred compensation | 14,027 | 14,042 |
Foreign currency and aluminum forward/option contracts | 896 | 340 |
Interest rate swap contract | 676 | 561 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 27,000 | 2,689 |
Commercial paper | 0 | |
Municipal and corporate bonds | 0 | |
Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Commercial paper | 4,300 | 1,500 |
Municipal and corporate bonds | 13,015 | 11,967 |
Cash surrender value of life insurance | 17,704 | 16,560 |
Deferred compensation | 14,027 | 14,042 |
Foreign currency and aluminum forward/option contracts | 896 | 340 |
Interest rate swap contract | $ 676 | $ 561 |
Financial Instruments (Detail_3
Financial Instruments (Details Textual) - Designated as Hedging Instrument $ in Millions | Nov. 28, 2020USD ($) |
Interest Rate Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 55 |
Foreign Exchange Forward | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | 18.7 |
Commodity Option [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 1.9 |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Nov. 28, 2020 | Feb. 29, 2020 | |
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | $ 185,516 | $ 185,832 |
Adjustment (1) | 6,315 | |
Foreign currency translation | 1,052 | (316) |
Goodwill, Ending | 192,883 | 185,516 |
Architectural Framing Systems | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 148,183 | 148,446 |
Adjustment (1) | 6,315 | |
Foreign currency translation | 1,475 | (263) |
Goodwill, Ending | 155,973 | 148,183 |
Architectural Glass | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 25,656 | 25,709 |
Adjustment (1) | 0 | |
Foreign currency translation | (423) | (53) |
Goodwill, Ending | 25,233 | 25,656 |
Architectural Services | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 1,120 | 1,120 |
Adjustment (1) | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, Ending | 1,120 | 1,120 |
Large-Scale Optical | ||
Schedule of goodwill attributable to each business segment | ||
Goodwill, Beginning | 10,557 | 10,557 |
Adjustment (1) | 0 | |
Foreign currency translation | 0 | 0 |
Goodwill, Ending | $ 10,557 | $ 10,557 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets (Details 1) - USD ($) $ in Thousands | Nov. 28, 2020 | Feb. 29, 2020 |
Schedule of finite lived identifiable intangible assets | ||
Gross Carrying Amount | $ 160,940 | $ 161,308 |
Accumulated Amortization | (71,821) | (65,637) |
Foreign Currency Translation | 1,923 | (781) |
Net | 91,042 | 94,890 |
Intangible Assets, Gross (Excluding Goodwill) | 206,240 | 206,729 |
Intangible Assets Accumulated Amortization | (71,821) | (65,637) |
Intangible Assets Foreign Currency Translation | 2,424 | (901) |
Intangible Assets, Net (Excluding Goodwill) | 136,843 | 140,191 |
Customer relationships | ||
Schedule of finite lived identifiable intangible assets | ||
Gross Carrying Amount | 119,647 | 120,239 |
Accumulated Amortization | (38,333) | (33,121) |
Foreign Currency Translation | 1,749 | (592) |
Net | 83,063 | 86,526 |
Other intangibles | ||
Schedule of finite lived identifiable intangible assets | ||
Gross Carrying Amount | 41,293 | 41,069 |
Accumulated Amortization | (33,488) | (32,516) |
Foreign Currency Translation | 174 | (189) |
Net | 7,979 | 8,364 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 45,300 | 45,421 |
Indefinite Lived Identifiable Intangible Assets, Foreign Currency Translation Adjustments | 501 | (120) |
Indefinite-lived Intangible Assets (Excluding Goodwill), Net of translation adjustments | $ 45,801 | $ 45,301 |
Goodwill and Other Identifiab_5
Goodwill and Other Identifiable Intangible Assets (Details 2) $ in Thousands | Nov. 28, 2020USD ($) |
Schedule of estimated future amortization expense for identifiable intangible assets | |
Remainder of Fiscal 2021 | $ 1,999 |
Fiscal 2022 | 7,902 |
Fiscal 2023 | 7,571 |
Fiscal 2024 | 7,247 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 7,993 |
Goodwill and Other Identifiab_6
Goodwill and Other Identifiable Intangible Assets (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Nov. 28, 2020 | Nov. 30, 2019 | |
Goodwill and Other Identifiable Intangible Assets (Textual) [Abstract] | ||
Amortization expense on identifiable intangible assets | $ 5.6 | $ 5.7 |
Debt (Details)
Debt (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 28, 2020USD ($) | Nov. 28, 2020USD ($) | Nov. 30, 2019USD ($) | Nov. 28, 2020CAD ($) | Feb. 29, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||||
Term Loan | $ 150,000,000 | $ 150,000,000 | |||
Interest payments | 3,700,000 | $ 7,300,000 | |||
Letter of credit | |||||
Line of Credit Facility [Line Items] | |||||
Debt | 18,700,000 | 18,700,000 | |||
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Total debt outstanding | 168,500,000 | 168,500,000 | $ 217,900,000 | ||
Maximum borrowing capacity | 235,000,000 | 235,000,000 | |||
Outstanding borrowings | 0 | 0 | 47,500,000 | ||
Industrial Revenue Bonds | |||||
Line of Credit Facility [Line Items] | |||||
Debt | 15,000,000 | 15,000,000 | |||
Repayment Recovery Zone Facility Bonds | 5,400,000 | ||||
Canada | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 25 | ||||
Outstanding borrowings | $ 3,500,000 | $ 3,500,000 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,477 | $ 3,445 | $ 10,329 | $ 10,308 |
Short-term lease cost | 472 | 427 | 1,384 | 1,606 |
Variable lease cost | 678 | 843 | 2,071 | 2,223 |
Total lease cost | $ 4,627 | $ 4,715 | $ 13,784 | $ 14,137 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 28, 2020 | Nov. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 10,233 | $ 10,335 |
Lease assets obtained in exchange for new operating lease liabilities | $ 19,623 | $ 15,948 |
Weighted-average remaining lease term - operating leases | 5 years 9 months 18 days | 5 years 10 months 24 days |
Weighted-average discount rate - operating leases | 3.18% | 3.57% |
Leases (Details 2)
Leases (Details 2) $ in Thousands | Nov. 28, 2020USD ($) |
Leases [Abstract] | |
Remainder of Fiscal 2021 | $ 3,381 |
Fiscal 2022 | 13,866 |
Fiscal 2023 | 12,662 |
Fiscal 2024 | 10,740 |
Fiscal 2025 | 8,994 |
Fiscal 2026 | 7,136 |
Thereafter | 10,078 |
Total lease payments | 66,857 |
Less: Amounts representing interest | (1,637) |
Present value of lease liabilities | $ 65,220 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Sep. 20, 2020 | Nov. 28, 2020 | Nov. 30, 2019 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Lease Not Yet Commenced, Undiscounted Amount | $ 8,200 | ||
Proceeds from sales of property, plant and equipment | 25,100 | $ 23,724 | $ 591 |
Sale Leaseback Transaction, Carrying Value | 4,300 | ||
Sale and Leaseback Transaction, Net gain on sale | $ 19,300 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 28, 2020 | Nov. 30, 2019 | |
Guarantees and warranties | ||
Balance at beginning of period | $ 15,629 | $ 16,737 |
Additional accruals | 4,175 | 5,996 |
Claims paid | (4,071) | (7,807) |
Balance at end of period | $ 15,733 | $ 14,926 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Details 2) | 9 Months Ended |
Nov. 28, 2020USD ($) | |
Income Tax Contingency [Line Items] | |
Proceeds received | $ 15,800 |
Deferred costs | 3,500 |
Net benefit | 12,300 |
November 2020 | |
Income Tax Contingency [Line Items] | |
Net benefit | 7,400,000 |
June 2023 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 6,000 |
Deferred costs | 1,200 |
Net benefit | 4,800 |
August 2025 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 6,600 |
Deferred costs | 1,300 |
Net benefit | 5,300 |
September 2025 | |
Income Tax Contingency [Line Items] | |
Proceeds received | 3,200 |
Deferred costs | 1,000 |
Net benefit | $ 2,200 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Details Textual) - USD ($) | 9 Months Ended | |
Nov. 28, 2020 | Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Face value of performance bonds | $ 1,100,000,000 | |
Companies Backlog Related to Sales | 527,800,000 | |
Line of Credit Facility [Line Items] | ||
Project related liability | 3,300,000 | $ 49,000,000 |
Net benefit | 12,300 | |
Purchase obligations | $ 207,500,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details 1) | 3 Months Ended | 9 Months Ended |
Nov. 28, 2020USD ($)$ / sharesshares | Nov. 28, 2020USD ($)$ / sharesshares | |
Award transactions on stock options | ||
Outstanding, Beginning | 100,341 | |
Awards granted | 660,600 | |
Awards exercised | (127,000) | |
Outstanding, Ending | 633,700 | 633,700 |
Outstanding, Vested or expected to vest | 633,700 | 633,700 |
Award transactions on stock options, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, Beginning | $ / shares | $ 8.34 | |
Weighted average exercise price, Awards granted | $ / shares | 23.04 | |
Weighted average exercise price, Awards exercised | $ / shares | 11.45 | |
Weighted average exercise price, Ending | $ / shares | $ 23.04 | 23.04 |
Weighted average exercise price, Vested or expected to vest | $ / shares | $ 23.04 | $ 23.04 |
Weighted average remaining contractual life, Outstanding | 9 years 7 months 6 days | |
Weighted average remaining contractual term, Vested or expected to vest | 9 years 7 months 6 days | |
Aggregate intrinsic value, Outstanding | $ | $ 2,889,672 | $ 2,889,672 |
Aggregate intrinsic value, Vested or expected to vest | $ | $ 2,889,672 | $ 2,889,672 |
Deferred Compensation, Share-based Payments [Member] | ||
Award transactions on stock options | ||
Awards exercised | (127,241) |
Share-Based Compensation (Det_2
Share-Based Compensation (Details 2) | 9 Months Ended |
Nov. 28, 2020$ / sharesshares | |
Nonvested share award transactions | |
Nonvested Number, Beginning | shares | 309,259 |
Number of shares, Granted | shares | 342,196 |
Number of shares, Vested | shares | (140,953) |
Number of shares, Canceled | shares | (2,059) |
Nonvested Number, Ending | shares | 508,443 |
Nonvested share award transactions, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, Beginning | $ / shares | $ 40.58 |
Weighted average grant date fair value, Granted | $ / shares | 20.46 |
Weighted average grant date fair value, Vested | $ / shares | 39.76 |
Weighted average grant date fair value, Canceled | $ / shares | 34.38 |
Weighted average grant date fair value, Ending | $ / shares | $ 27.29 |
Share-Based Compensation (Det_3
Share-Based Compensation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Nov. 28, 2020 | Nov. 28, 2020 | Nov. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Noncash Expense | $ 6,163,000 | $ 4,617,000 | |
Cash proceeds from exercise of stock options | 1,500,000 | 0 | |
Aggregate Intrinsic Value, Exercisable | $ 1,800,000 | 1,800,000 | |
Total unrecognized compensation cost related to nonvested share | $ 8,600,000 | 8,600,000 | |
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Excluding Option Exercised | $ 0 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period, Nonvested | 25 months | ||
Total fair value of shares vested | $ 3,200,000 |
Earnings per Share Earnings per
Earnings per Share Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Basic earnings per share – weighted average common shares outstanding | 25,883 | 26,432 | 26,068 | 26,481 |
Weighted average effect of nonvested share grants and assumed exercise of stock options | 342 | 318 | 282 | 295 |
Diluted earnings per share – weighted average common shares and potential common shares outstanding | 26,225 | 26,750 | 26,350 | 26,776 |
Stock awards excluded from the calculation of earnings per share because the effect was anti-dilutive (award price greater than average market price of the shares) | 159 | 152 | 238 | 152 |
Segment Information Segment Inf
Segment Information Segment Information (Details Textual) | 9 Months Ended |
Nov. 28, 2020Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 28, 2020 | Nov. 30, 2019 | Nov. 28, 2020 | Nov. 30, 2019 | |
Sales and operating income data | ||||
Net sales | $ 313,583 | $ 337,916 | $ 922,162 | $ 1,050,340 |
Operating income (loss) | 49,750 | 21,594 | 79,433 | 72,210 |
Architectural Framing Systems | ||||
Sales and operating income data | ||||
Net sales | 136,688 | 165,517 | 439,779 | 533,432 |
Operating income (loss) | 7,218 | 6,345 | 26,211 | 34,141 |
Architectural Glass | ||||
Sales and operating income data | ||||
Net sales | 84,779 | 89,433 | 248,274 | 288,862 |
Operating income (loss) | 10,825 | 4,092 | 15,306 | 16,951 |
Architectural Services | ||||
Sales and operating income data | ||||
Net sales | 76,690 | 69,043 | 213,911 | 195,787 |
Operating income (loss) | 8,558 | 6,533 | 20,470 | 15,082 |
Large-Scale Optical | ||||
Sales and operating income data | ||||
Net sales | 25,267 | 24,405 | 48,438 | 66,449 |
Operating income (loss) | 26,114 | 6,754 | 25,131 | 15,561 |
Intersegment eliminations | ||||
Sales and operating income data | ||||
Net sales | (9,841) | (10,482) | (28,240) | (34,190) |
Corporate and other | ||||
Sales and operating income data | ||||
Operating income (loss) | $ (2,965) | $ (2,130) | $ (7,685) | $ (9,525) |