0000006845false2022FYP2YP3YP4Y00000068452021-02-282022-02-2600000068452021-08-28iso4217:USD00000068452022-04-18xbrli:shares00000068452022-02-2600000068452021-02-27iso4217:USDxbrli:shares00000068452020-03-012021-02-2700000068452019-03-032020-02-2900000068452020-02-2900000068452019-03-020000006845us-gaap:CommonStockMember2019-03-020000006845us-gaap:AdditionalPaidInCapitalMember2019-03-020000006845us-gaap:RetainedEarningsMember2019-03-020000006845apog:CommonStockHeldInTrustMember2019-03-020000006845apog:DeferredCompensationObligationMember2019-03-020000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-020000006845us-gaap:RetainedEarningsMember2019-03-032020-02-290000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-032020-02-290000006845us-gaap:CommonStockMember2019-03-032020-02-290000006845us-gaap:AdditionalPaidInCapitalMember2019-03-032020-02-290000006845apog:CommonStockHeldInTrustMember2019-03-032020-02-290000006845apog:DeferredCompensationObligationMember2019-03-032020-02-290000006845us-gaap:CommonStockMember2020-02-290000006845us-gaap:AdditionalPaidInCapitalMember2020-02-290000006845us-gaap:RetainedEarningsMember2020-02-290000006845apog:CommonStockHeldInTrustMember2020-02-290000006845apog:DeferredCompensationObligationMember2020-02-290000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-02-290000006845us-gaap:RetainedEarningsMember2020-03-012021-02-270000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-012021-02-270000006845us-gaap:CommonStockMember2020-03-012021-02-270000006845us-gaap:AdditionalPaidInCapitalMember2020-03-012021-02-270000006845apog:CommonStockHeldInTrustMember2020-03-012021-02-270000006845apog:DeferredCompensationObligationMember2020-03-012021-02-270000006845us-gaap:CommonStockMember2021-02-270000006845us-gaap:AdditionalPaidInCapitalMember2021-02-270000006845us-gaap:RetainedEarningsMember2021-02-270000006845apog:CommonStockHeldInTrustMember2021-02-270000006845apog:DeferredCompensationObligationMember2021-02-270000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-270000006845us-gaap:RetainedEarningsMember2021-02-282022-02-260000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-02-282022-02-260000006845us-gaap:CommonStockMember2021-02-282022-02-260000006845us-gaap:AdditionalPaidInCapitalMember2021-02-282022-02-260000006845apog:CommonStockHeldInTrustMember2021-02-282022-02-260000006845apog:DeferredCompensationObligationMember2021-02-282022-02-260000006845us-gaap:CommonStockMember2022-02-260000006845us-gaap:AdditionalPaidInCapitalMember2022-02-260000006845us-gaap:RetainedEarningsMember2022-02-260000006845apog:CommonStockHeldInTrustMember2022-02-260000006845apog:DeferredCompensationObligationMember2022-02-260000006845us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-02-260000006845srt:MinimumMemberus-gaap:BuildingAndBuildingImprovementsMember2021-02-282022-02-260000006845srt:MaximumMemberus-gaap:BuildingAndBuildingImprovementsMember2021-02-282022-02-260000006845srt:MinimumMemberus-gaap:MachineryAndEquipmentMember2021-02-282022-02-260000006845srt:MaximumMemberus-gaap:MachineryAndEquipmentMember2021-02-282022-02-260000006845srt:MinimumMemberus-gaap:FurnitureAndFixturesMember2021-02-282022-02-260000006845srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2021-02-282022-02-260000006845us-gaap:TransferredAtPointInTimeMember2021-02-282022-02-26xbrli:pureapog:business0000006845us-gaap:CostOfSalesMember2021-02-282022-02-260000006845us-gaap:CostOfSalesMember2020-03-012021-02-270000006845us-gaap:CostOfSalesMember2019-03-032020-02-290000006845us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-02-282022-02-260000006845us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-03-012021-02-270000006845us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-03-032020-02-290000006845us-gaap:SubsequentEventMember2022-04-222022-04-220000006845us-gaap:TransferredAtPointInTimeMember2020-03-012021-02-270000006845us-gaap:TransferredAtPointInTimeMember2019-03-032020-02-290000006845us-gaap:TransferredOverTimeMember2021-02-282022-02-260000006845us-gaap:TransferredOverTimeMember2020-03-012021-02-270000006845us-gaap:TransferredOverTimeMember2019-03-032020-02-290000006845us-gaap:TradeAccountsReceivableMember2022-02-260000006845us-gaap:TradeAccountsReceivableMember2021-02-270000006845apog:AccountsReceivableConstructionContractsMember2022-02-260000006845apog:AccountsReceivableConstructionContractsMember2021-02-270000006845apog:AccountsReceivableContractRetainageMember2022-02-260000006845apog:AccountsReceivableContractRetainageMember2021-02-2700000068452022-02-272022-02-2600000068452023-02-272022-02-2600000068452024-02-272022-02-260000006845us-gaap:MunicipalBondsMember2022-02-260000006845us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-02-260000006845us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2022-02-260000006845us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CommodityOptionMember2022-02-260000006845us-gaap:FairValueInputsLevel1Member2022-02-260000006845us-gaap:FairValueInputsLevel2Member2022-02-260000006845us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityOptionMember2022-02-260000006845us-gaap:CommodityOptionMember2022-02-260000006845us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2022-02-260000006845us-gaap:InterestRateSwapMember2022-02-260000006845us-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel2Member2022-02-260000006845us-gaap:ForeignExchangeForwardMember2022-02-260000006845us-gaap:FairValueInputsLevel1Member2021-02-270000006845us-gaap:FairValueInputsLevel2Member2021-02-270000006845us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityOptionMember2021-02-270000006845us-gaap:ForeignExchangeForwardMember2021-02-270000006845us-gaap:CommodityOptionMember2021-02-270000006845us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMember2021-02-270000006845us-gaap:InterestRateSwapMember2021-02-270000006845us-gaap:LandMember2022-02-260000006845us-gaap:LandMember2021-02-270000006845us-gaap:BuildingAndBuildingImprovementsMember2022-02-260000006845us-gaap:BuildingAndBuildingImprovementsMember2021-02-270000006845us-gaap:MachineryAndEquipmentMember2022-02-260000006845us-gaap:MachineryAndEquipmentMember2021-02-270000006845us-gaap:FurnitureAndFixturesMember2022-02-260000006845us-gaap:FurnitureAndFixturesMember2021-02-270000006845us-gaap:ConstructionInProgressMember2022-02-260000006845us-gaap:ConstructionInProgressMember2021-02-270000006845apog:EFCOCorporationMember2020-03-012021-02-270000006845apog:SotawallMember2020-03-012021-02-270000006845apog:ArchitecturalFramingSegmentMember2020-02-290000006845apog:ArchitecturalMember2020-02-290000006845apog:ArchitecturalServicesSegmentMember2020-02-290000006845apog:LargeScaleOpticalMember2020-02-290000006845apog:ArchitecturalFramingSegmentMember2020-03-012021-02-270000006845apog:ArchitecturalMember2020-03-012021-02-270000006845apog:ArchitecturalServicesSegmentMember2020-03-012021-02-270000006845apog:LargeScaleOpticalMember2020-03-012021-02-270000006845apog:ArchitecturalFramingSegmentMember2021-02-270000006845apog:ArchitecturalMember2021-02-270000006845apog:ArchitecturalServicesSegmentMember2021-02-270000006845apog:LargeScaleOpticalMember2021-02-270000006845apog:ArchitecturalFramingSegmentMember2021-02-282022-02-260000006845apog:ArchitecturalMember2021-02-282022-02-260000006845apog:ArchitecturalServicesSegmentMember2021-02-282022-02-260000006845apog:LargeScaleOpticalMember2021-02-282022-02-260000006845apog:ArchitecturalFramingSegmentMember2022-02-260000006845apog:ArchitecturalMember2022-02-260000006845apog:ArchitecturalServicesSegmentMember2022-02-260000006845apog:LargeScaleOpticalMember2022-02-260000006845us-gaap:CustomerRelationshipsMember2022-02-260000006845us-gaap:CustomerRelationshipsMember2021-02-282022-02-260000006845us-gaap:OtherIntangibleAssetsMember2022-02-260000006845us-gaap:OtherIntangibleAssetsMember2021-02-282022-02-260000006845us-gaap:TrademarksMember2022-02-260000006845us-gaap:TrademarksMember2021-02-282022-02-260000006845us-gaap:CustomerRelationshipsMember2021-02-270000006845us-gaap:CustomerRelationshipsMember2020-03-012021-02-270000006845us-gaap:OtherIntangibleAssetsMember2021-02-270000006845us-gaap:OtherIntangibleAssetsMember2020-03-012021-02-270000006845us-gaap:TrademarksMember2021-02-270000006845us-gaap:TrademarksMember2020-03-012021-02-270000006845us-gaap:RevolvingCreditFacilityMember2022-02-260000006845us-gaap:RevolvingCreditFacilityMember2021-02-270000006845apog:TermLoanMember2021-02-270000006845apog:TermLoanMember2022-02-260000006845us-gaap:LetterOfCreditMember2022-02-260000006845apog:RecoveryZoneFacilityBondsMember2022-02-260000006845us-gaap:LineOfCreditMembercountry:CA2022-02-26iso4217:CAD0000006845country:CA2021-02-270000006845country:CA2022-02-26apog:Facility0000006845apog:FirstOnePercentMember2021-02-282022-02-260000006845apog:TwoThroughSixPercentMember2021-02-282022-02-260000006845apog:OtherCurrentAndOtherNoncurrentLiabilitiesMember2022-02-260000006845apog:OtherCurrentAndOtherNoncurrentLiabilitiesMember2021-02-270000006845us-gaap:PensionPlansDefinedBenefitMemberapog:AtlantaIronworkersLocalUnion387PensionPlanMember2021-02-282022-02-260000006845us-gaap:PensionPlansDefinedBenefitMemberapog:AtlantaIronworkersLocalUnion387PensionPlanMember2020-03-012021-02-270000006845us-gaap:PensionPlansDefinedBenefitMemberapog:AtlantaIronworkersLocalUnion387PensionPlanMember2019-03-032020-02-290000006845apog:GlaziersUnionLocal27PensionAndRetirementPlanMemberus-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845apog:GlaziersUnionLocal27PensionAndRetirementPlanMemberus-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845apog:GlaziersUnionLocal27PensionAndRetirementPlanMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845apog:InternationalPaintersAndAlliedTradesIndustryPensionFundMemberus-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845apog:InternationalPaintersAndAlliedTradesIndustryPensionFundMemberus-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845apog:InternationalPaintersAndAlliedTradesIndustryPensionFundMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845apog:TextFormattingLabelRoleIronWorkersLocalUnionNo5AndIronWorkersEmployersAssociationEmployeesPensionTrustFundMemberus-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845apog:TextFormattingLabelRoleIronWorkersLocalUnionNo5AndIronWorkersEmployersAssociationEmployeesPensionTrustFundMemberus-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845apog:TextFormattingLabelRoleIronWorkersLocalUnionNo5AndIronWorkersEmployersAssociationEmployeesPensionTrustFundMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845apog:IronWorkersLocalUnionNo5AndIronWorkersEmployersAssocationEmployeesPensionTrsutFundMemberus-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845apog:IronWorkersLocalUnionNo5AndIronWorkersEmployersAssocationEmployeesPensionTrsutFundMemberus-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845apog:IronWorkersLocalUnionNo5AndIronWorkersEmployersAssocationEmployeesPensionTrsutFundMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845apog:IronWorkersMidAmericaPensionFundMemberus-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845apog:IronWorkersMidAmericaPensionFundMemberus-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845apog:IronWorkersMidAmericaPensionFundMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845apog:WesternGlaziersRetirementPlanWashingtonMemberus-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845apog:WesternGlaziersRetirementPlanWashingtonMemberus-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845apog:WesternGlaziersRetirementPlanWashingtonMemberus-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845us-gaap:PensionPlansDefinedBenefitMember2021-02-282022-02-260000006845us-gaap:PensionPlansDefinedBenefitMember2020-03-012021-02-270000006845us-gaap:PensionPlansDefinedBenefitMember2019-03-032020-02-290000006845apog:MultiemployerPlansDefinedContributionMember2021-02-282022-02-260000006845apog:MultiemployerPlansDefinedContributionMember2020-03-012021-02-270000006845apog:MultiemployerPlansDefinedContributionMember2019-03-032020-02-290000006845srt:ScenarioForecastMember2022-02-272023-02-250000006845apog:CurrentLiabilitiesAndOtherNonCurrentLiabilitiesMember2022-02-260000006845apog:May2023Member2021-02-282022-02-260000006845apog:May2023Member2022-02-260000006845apog:July2025Member2021-02-282022-02-260000006845apog:July2025Member2022-02-260000006845apog:August2025Member2021-02-282022-02-260000006845apog:August2025Member2022-02-260000006845apog:ShareRepurchaseProgramMember2021-02-282022-02-260000006845apog:ShareRepurchaseProgramMember2020-03-012021-02-270000006845apog:ShareRepurchaseProgramMember2019-03-032020-02-290000006845apog:ShareRepurchaseProgramMember2004-01-012022-02-260000006845apog:ShareRepurchaseProgramMember2022-02-260000006845us-gaap:StockCompensationPlanMember2021-02-282022-02-260000006845us-gaap:StockCompensationPlanMember2020-03-012021-02-270000006845us-gaap:StockCompensationPlanMember2019-03-032020-02-290000006845apog:TwoThousandandNineteenStockIncentivePlanMember2022-02-260000006845apog:TwoThousandandNineteenNonEmployeeDirectorStockPlanMember2022-02-260000006845srt:MinimumMember2021-02-282022-02-260000006845srt:MaximumMember2021-02-282022-02-260000006845apog:StockOptionsAndStockAppreciationRightsMember2021-02-270000006845apog:StockOptionsAndStockAppreciationRightsMember2021-02-282022-02-260000006845apog:StockOptionsAndStockAppreciationRightsMember2022-02-260000006845us-gaap:RestrictedStockMember2021-02-282022-02-260000006845us-gaap:StateAndLocalJurisdictionMember2022-02-260000006845apog:ArchitecturalFramingSegmentMember2019-03-032020-02-290000006845apog:ArchitecturalGlassSegmentMember2021-02-282022-02-260000006845apog:ArchitecturalGlassSegmentMember2020-03-012021-02-270000006845apog:ArchitecturalGlassSegmentMember2019-03-032020-02-290000006845apog:ArchitecturalServicesSegmentMember2019-03-032020-02-290000006845apog:LargeScaleOpticalSegmentMember2021-02-282022-02-260000006845apog:LargeScaleOpticalSegmentMember2020-03-012021-02-270000006845apog:LargeScaleOpticalSegmentMember2019-03-032020-02-290000006845us-gaap:IntersegmentEliminationMember2021-02-282022-02-260000006845us-gaap:IntersegmentEliminationMember2020-03-012021-02-270000006845us-gaap:IntersegmentEliminationMember2019-03-032020-02-290000006845us-gaap:CorporateAndOtherMember2021-02-282022-02-260000006845us-gaap:CorporateAndOtherMember2020-03-012021-02-270000006845us-gaap:CorporateAndOtherMember2019-03-032020-02-290000006845apog:ArchitecturalGlassSegmentMember2022-02-260000006845apog:ArchitecturalGlassSegmentMember2021-02-270000006845apog:ArchitecturalGlassSegmentMember2020-02-290000006845apog:LargeScaleOpticalSegmentMember2022-02-260000006845apog:LargeScaleOpticalSegmentMember2021-02-270000006845apog:LargeScaleOpticalSegmentMember2020-02-290000006845us-gaap:CorporateAndOtherMember2022-02-260000006845us-gaap:CorporateAndOtherMember2021-02-270000006845us-gaap:CorporateAndOtherMember2020-02-290000006845country:US2021-02-282022-02-260000006845country:US2020-03-012021-02-270000006845country:US2019-03-032020-02-290000006845country:CA2021-02-282022-02-260000006845country:CA2020-03-012021-02-270000006845country:CA2019-03-032020-02-290000006845country:BR2021-02-282022-02-260000006845country:BR2020-03-012021-02-270000006845country:BR2019-03-032020-02-290000006845country:US2022-02-260000006845country:US2021-02-270000006845country:US2020-02-290000006845country:CA2020-02-290000006845country:BR2022-02-260000006845country:BR2021-02-270000006845country:BR2020-02-290000006845us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2021-02-282022-02-260000006845us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-03-012021-02-270000006845us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-03-032020-02-290000006845us-gaap:NonUsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-03-032020-02-290000006845us-gaap:NonUsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2021-02-282022-02-260000006845us-gaap:NonUsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-03-012021-02-270000006845us-gaap:BuildingAndBuildingImprovementsMember2021-02-282022-02-260000006845apog:ArchitecturalFramingSegmentMemberapog:AssetImpairmentDueToRestructuringMember2021-02-282022-02-260000006845apog:ArchitecturalGlassSegmentMemberapog:AssetImpairmentDueToRestructuringMember2021-02-282022-02-260000006845us-gaap:CorporateAndOtherMemberapog:AssetImpairmentDueToRestructuringMember2021-02-282022-02-260000006845apog:AssetImpairmentDueToRestructuringMember2021-02-282022-02-260000006845apog:ArchitecturalFramingSegmentMemberus-gaap:EmployeeSeveranceMember2021-02-282022-02-260000006845us-gaap:EmployeeSeveranceMemberapog:ArchitecturalGlassSegmentMember2021-02-282022-02-260000006845us-gaap:EmployeeSeveranceMemberus-gaap:CorporateAndOtherMember2021-02-282022-02-260000006845us-gaap:EmployeeSeveranceMember2021-02-282022-02-260000006845apog:ArchitecturalFramingSegmentMemberus-gaap:OtherRestructuringMember2021-02-282022-02-260000006845us-gaap:OtherRestructuringMemberapog:ArchitecturalGlassSegmentMember2021-02-282022-02-260000006845us-gaap:CorporateAndOtherMemberus-gaap:OtherRestructuringMember2021-02-282022-02-260000006845us-gaap:OtherRestructuringMember2021-02-282022-02-260000006845apog:ArchitecturalFramingSegmentMemberapog:AssetImpairmentDueToRestructuringMember2020-03-012021-02-270000006845apog:ArchitecturalGlassSegmentMemberapog:AssetImpairmentDueToRestructuringMember2020-03-012021-02-270000006845us-gaap:CorporateAndOtherMemberapog:AssetImpairmentDueToRestructuringMember2020-03-012021-02-270000006845apog:AssetImpairmentDueToRestructuringMember2020-03-012021-02-270000006845apog:ArchitecturalFramingSegmentMemberus-gaap:EmployeeSeveranceMember2020-03-012021-02-270000006845us-gaap:EmployeeSeveranceMemberapog:ArchitecturalGlassSegmentMember2020-03-012021-02-270000006845us-gaap:EmployeeSeveranceMemberus-gaap:CorporateAndOtherMember2020-03-012021-02-270000006845us-gaap:EmployeeSeveranceMember2020-03-012021-02-270000006845apog:ArchitecturalFramingSegmentMemberus-gaap:OtherRestructuringMember2020-03-012021-02-270000006845us-gaap:OtherRestructuringMemberapog:ArchitecturalGlassSegmentMember2020-03-012021-02-270000006845us-gaap:CorporateAndOtherMemberus-gaap:OtherRestructuringMember2020-03-012021-02-270000006845us-gaap:OtherRestructuringMember2020-03-012021-02-27

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________________ 

FORM 10-K

 _________________________________

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

For the fiscal year ended February 26, 2022

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

For the transition period from             to             

Commission File Number: 0-6365

_________________________________ 

APOGEE ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

 _________________________________

Minnesota

41-0919654

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

4400 West 78th Street

Suite 520

Minneapolis

Minnesota

55435

(Address of principal executive offices)

(Zip Code)

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

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.33 1/3 Par Value

APOG

The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

________________________________ 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☒  Yes    ☐  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐  Yes    ☒  No

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

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

---

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

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.                 ☒ 

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

As of August 27, 2021, the last business day of the registrant's most recently completed second fiscal quarter, the approximate aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant was $1,093,000,000 (based on the closing price of $43.71 per share as reported on the NASDAQ Stock Market LLC as of that date).

As of April 18, 2022, 22,347,288 shares of the registrant’s common stock, par value $0.33 1/3 per share, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:

In accordance with General Instruction G(3) of Form 10-K, certain information required by Part III hereof will either be incorporated into this Annual Report on Form 10-K by reference to our Definitive Proxy Statement for our Annual Meeting of Shareholders filed within 120 days of our fiscal year ended February 26, 2022 or will be included in an amendment to this Annual Report on Form 10-K filed within 120 days of February 26, 2022.

---

Table of Contents

APOGEE ENTERPRISES, INC.

Annual Report on Form 10-K

For the fiscal year ended February 26, 2022

TABLE OF CONTENTS

 

						Page
			PART I
Item 1.			Business			4
Item 1A.			Risk Factors			9
Item 1B.			Unresolved Staff Comments			14
Item 2.			Properties			14
Item 3.			Legal Proceedings			14
Item 4.			Mine Safety Disclosures			14
			PART II
Item 5.			Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			15
Item 6.			Reserved			16
Item 7.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			16
Item 7A.			Quantitative and Qualitative Disclosures About Market Risk			25
Item 8.			Financial Statements and Supplementary Data			27
Item 9.			Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			60
Item 9A.			Controls and Procedures			60
Item 9B.			Other Information			60
Item 9C.			Disclosure Regarding Foreign Jurisdictions that Prevent Inspections			60
			PART III
Item 10.			Directors, Executive Officers, Code of Ethics and Corporate Governance			60
Item 11.			Executive and Director Compensation			60
Item 12.			Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			60
Item 13.			Certain Relationships and Related Transactions, and Director Independence			60
Item 14.			Principal Accountant Fees and Services			61
			PART IV
Item 15.			Exhibits and Financial Statement Schedules			61
Item 16.			Form 10-K Summary			63
			Signatures			64

 

3

---

Table of Contents

PART I

ITEM 1. BUSINESS

The Company

Apogee Enterprises, Inc. (Apogee, the Company or we) was incorporated under the laws of the State of Minnesota in 1949. We are a leading provider of architectural products and services for enclosing buildings, and high-performance glass and acrylic products used in applications for preservation, protection and enhanced viewing.

Our Company has four reporting segments, with three of the segments serving the commercial construction market:

•The Architectural Framing Systems segment designs, engineers, fabricates and finishes aluminum window, curtainwall, storefront and entrance systems for the exterior of buildings. In fiscal 2022, this segment accounted for approximately 45 percent of our net sales.

•The Architectural Glass segment coats and fabricates, high-performance glass used in custom window and wall systems on commercial buildings. In fiscal 2022, this segment accounted for approximately 20 percent of our net sales.

•The Architectural Services segment integrates technical services, project management, and field installation services to design, engineer, fabricate, and install building glass and curtainwall systems. In fiscal 2022, this segment accounted for approximately 27 percent of our net sales.

•The Large-Scale Optical Technologies (LSO) segment manufactures high-performance glass and acrylic products for custom framing, museum, and technical glass markets. In fiscal 2022, this segment accounted for approximately 8 percent of our net sales.

Strategy

In fiscal 2022, we conducted a holistic strategic review of our business and the markets we serve. This review included extensive input from customers and industry influencers, along with detailed competitive benchmarking. We analyzed our portfolio of products, services, and capabilities to identify the best areas for future growth. We also evaluated our operating model to ensure we have the organizational structure and capabilities needed to deliver consistent profitable growth. Through this work, we validated the Company’s strengths that we can leverage as we move forward. We also identified several challenges facing the Company and opportunities for improved performance.

Following this review, we established a new enterprise strategy, with three key elements:

1.Become the economic leader in our target markets. We will achieve this by developing a deep understanding of our target markets and aligning our businesses with clear go-to-market strategies to drive value for our customers through differentiated product and service offerings. We will also build a relentless focus on operational execution, driving productivity improvements, and maintaining a competitive cost structure, so that we may bring more value to our customers and improve our own profitability.

2.Actively manage our portfolio to drive higher margins and returns. We intend to shift our business mix toward higher operating margin offerings and improve our return on invested capital performance. We will accomplish this by allocating resources to grow our top performing businesses, actively addressing underperforming businesses, and investing to add new differentiated product and service offerings to accelerate our growth.

3.Strengthen our core capabilities. We are shifting from our historical, decentralized operating model, to one with center-led functional expertise that enables us to leverage the scale of the enterprise to better support the needs of the business. We are establishing a Company-wide operating system with common tools and processes that are based on the foundation of Lean and Continuous Improvement. This will be supported by a robust talent management program and a commitment to strong governance to ensure compliance and drive sustainable performance.

During the fiscal year, we began to implement our new strategy, building significant momentum in the transformation of our business. We realigned Architectural Framing Systems to better leverage the scale and capabilities of the organization, and to bring more clarity and focus in our go-to-market approach. We refocused Architectural Glass to emphasize differentiated, high value-added products. We also announced our intention to move the Sotawall business into Architectural Services, beginning in fiscal 2023, to create a single, unified offering for larger custom curtainwall projects. During the fiscal year, we began several enterprise transformation initiatives designed to strengthen core processes and systems and provide new capabilities across several functional areas. Finally, we relaunched our Lean and Continuous Improvement program, adding key talent and developing a set of tools and processes that we will use to drive improved performance across the enterprise.

We plan to continue to execute this strategy over the next several years. To measure our progress, we have established three consolidated enterprise financial targets, which we expect to achieve by the end of fiscal year 2025:

•Return on Invested Capital (ROIC)* greater than 12 percent,

•operating margin greater than 10 percent,

•and revenue growth greater than 1.2 times the overall non-residential construction market.
*ROIC is a non-GAAP measure. See discussion of non-GAAP measures within the Overview section of Management's Discussion and Analysis.

4

---

Table of Contents

Products and Services

Architectural Framing Systems, Architectural Glass and Architectural Services segments

These three segments primarily serve the construction industry and participate in various phases of the value stream to design, engineer, fabricate and install custom glass and aluminum window, curtainwall, storefront and entrance systems for the exterior of buildings, primarily in the commercial, institutional, and multi-family residential construction sectors.

Our Architectural Framing Systems segment designs, engineers and fabricates aluminum window, curtainwall, storefront and entrance systems. We also extrude aluminum and provide finishing services for metal components used in a variety of building materials applications, as well as plastic components for other markets.

Our Architectural Glass segment provides a wide range of high-performance glass products, offering customized solutions that enable architects and building owners to meet their design, aesthetic, and performance goals. We fabricate insulating, laminated, and monolithic glass units that are used in windows, curtainwall, storefront, and entrance systems. We provide premium glass solutions to meet our customers’ design and energy-performance requirements. These include propriety, high-performance coatings, digital printing, heat soaking of tempered glass, and thermal spacers.

Our Architectural Services segment delivers value by integrating technical capabilities, project management skills and field installation services, to provide design, engineering, fabrication and installation for the exteriors of commercial buildings. Our ability to efficiently design high-quality window and curtainwall systems and effectively manage the installation of building façades enables our customers to meet schedule and cost requirements of their projects.

Our product and service offerings across these architectural segments allow architects to create distinctive looks for buildings such as health care facilities, government buildings, office towers, hotels, education and athletic facilities, retail centers, transportation centers, mixed use and multi-family residential buildings. Our solutions also help meet functional requirements such as energy efficiency, hurricane, blast and other impact resistance and/or sound control.

With respect to sustainability, many of our architectural products and services help architects, developers, and building owners achieve their energy-efficiency and sustainability goals by improving energy performance, thereby reducing greenhouse gas emissions, providing daylight and natural ventilation, and increasing comfort and safety for occupants. These products include high-performance thermal framing systems, energy efficient glass coatings, and sun control products such as sunshades and light shelves. Many of our framing systems products can be specified with recycled aluminum content and utilize environmentally friendly anodize and paint finishes. In addition, we offer a wide range of renovation solutions to help modernize aging buildings, providing significantly improved energy performance, while preserving historically accurate aesthetics.

LSO segment

The LSO segment provides coated glass and acrylic primarily for use in custom picture framing, museum framing, wall decor and technical glass for other display applications. Products vary based on size and coatings to provide conservation-grade UV protection, anti-reflective and anti-static properties and/or security features.

Product Demand and Distribution Channels

Architectural Framing Systems, Architectural Glass and Architectural Services segments

Demand for the products and services offered by our architectural segments is affected by changes in the North American commercial construction industry, as well as by changes in general economic conditions. Additionally, the Architectural Glass segment has Brazilian operations which are impacted by Brazil's commercial construction industry and general economic conditions.

We look at several external indicators to analyze potential demand for our products and services, such as U.S. and Canadian job growth, office vacancy rates, credit and interest rates, architectural billing statistics, and material costs. We also rely on internal indicators to analyze demand, including our sales pipeline, which is made up of contracts in review, projects awarded or committed, and bidding activity. Our sales pipeline, together with ongoing feedback, analysis and data from our customers, architects and building owners, provide visibility into near- and medium-term demand. Additionally, we evaluate data on U.S. and Canadian non-residential construction market activity, industry analysis and longer-term trends provided by external data sources.

Our architectural products and services are used in subsets of the construction industry differentiated by the following types of factors:

5

---

Table of Contents

•Building type - Our products and services are primarily used in commercial buildings (office buildings, hotels and retail centers), institutional buildings (education facilities, health care facilities and government buildings), and multi-family residential buildings (a subset of residential construction).

•Level of customization - Many of our projects involve a high degree of customization, as the product or service is designed to meet customer-specified requirements for aesthetics, performance and size, and local building codes.

•Customers and distribution channels - Our customers are mainly glazing subcontractors and general contractors, with project design being influenced by architects and building owners. Our high-performance architectural glass is primarily sold using both a direct sales force and independent sales representatives. Our installation services are sold by a direct sales force in certain metropolitan areas in the U.S. Our window, curtainwall, storefront and entrance systems are sold using a combination of direct sales forces, independent sales representatives and distributors.

•Geographic location - We primarily supply architectural glass products and aluminum framing systems, including window, curtainwall, storefront and entrance systems, to customers in North America. We are one of only a few architectural glass installation service companies in the U.S. to have a national presence and we have the ability to provide installation project management throughout the U.S. and Canada. Our Architectural Glass segment also supplies architectural glass products to customers in Brazil and certain other international locations.

LSO segment

In our LSO segment, we have a leading brand of value-added coated glass and acrylic used in the custom picture-framing market, museum market, and various technical glass applications. Under the Tru Vue brand, products are sold primarily in North America through national and regional retail chains using a direct sales force, as well as to local retailers through an independent distribution network. We have a global distribution network and also supply our products to museums, galleries and other customers in Europe, Asia and other international locations.

Competitive Conditions

Architectural Framing Systems, Architectural Glass and Architectural Services segments

The North American commercial construction market is highly fragmented. Competitive factors include price, product quality, product attributes and performance, reliable service, on-time delivery, lead-time, warranties and the ability to provide project management, technical engineering and design services. To protect and improve our competitive position, we maintain strong relationships with building owners, architects, and other stakeholders who influence the selection of products and services on a project, and with general contractors, who initiate projects and develop specifications.

Our Architectural Framing Systems segment competes against several national, regional and local aluminum window and storefront manufacturers, as well as regional paint and anodizing finishing companies. Our businesses compete by providing a broad portfolio of high-quality products, robust engineering capabilities, and dependable, short lead-time service.

In our Architectural Glass segment, we experience competition from regional glass fabricators and international competitors who can provide certain products with attributes similar to ours. We differentiate by providing a wide range of high-quality products, including several proprietary offerings, that we can bundle together into customized solutions. We maintain strong relationships with architects, developers, and other industry stakeholders, and provide strong customer service and reliable delivery.

Our Architectural Services segment competes against national and regional glass installation companies. We compete by offering a robust set of capabilities at a competitive cost. Our capabilities include preconstruction services, engineering and design, project management, manufacturing, and field installation. We deliver these services using an operating model which reduces costs and risks for our customers, and we’ve established a track record of regularly meeting each project's unique execution requirements.

LSO segment

Our LSO segment competes with European and U.S. providers of both basic and valued-added glass and acrylic. Our competitive strengths include innovative proprietary products and process technologies, a highly automated manufacturing model, innovative marketing programs, strong relationships with our customers, and an established distribution network.

Warranties

We offer product and service warranties that we believe are competitive for the markets in which our products and services are sold. The nature and extent of these warranties depend upon the product or service, the market and, in some cases, the customer being served. Our standard warranties are generally from two to 10 years for our architectural glass, curtainwall and window system products, while we generally offer warranties of two years or less on our other products and services.

6

---

Table of Contents

Sources and Availability of Raw Materials

Materials used in the Architectural Framing Systems segment include aluminum billet and extrusions, fabricated glass, plastic extrusions, hardware, paint and chemicals. Raw materials used within the Architectural Glass segment include flat glass, vinyl, silicone sealants and lumber. Within the Architectural Services segment, materials used include fabricated glass, finished aluminum extrusions, fabricated metal panels and hardware. Materials used in the LSO segment are primarily glass and acrylic. Most of our raw materials are readily available from a variety of domestic and international sources.

Intellectual Property

We have several patents, trademarks, trade names, trade secrets and proprietary technologies and customer relationships that we believe, in the aggregate, constitute a valuable asset. However, we do not believe that our business is materially dependent on any individual patent, trademark or other intellectual property asset.

Seasonality
Activity in the construction industry is impacted by the seasonal impact of weather and weather events in our operating locations, with activity in some markets reduced in winter due to inclement weather.

Working Capital Requirements

Trade and contract-related receivables and other contract assets are the largest components of our working capital. Inventory requirements, mainly related to raw materials, are most significant in our Architectural Framing Systems and Architectural Glass segments.

Backlog

Backlog represents the dollar amount of signed contracts or firm orders, generally as a result of a competitive bidding process, which may be expected to be recognized as revenue in the future. Backlog is not a term defined under U.S. generally accepted accounting principles (GAAP) and is not a measure of contract profitability. In addition to backlog, we have a substantial amount of projects with short lead times that book-and-bill within the same reporting period and are not included in backlog. We have good visibility beyond backlog, as projects awarded, verbal commitments and bidding activities are not included in backlog.

Architectural Framing Systems segment backlog as of fiscal year-end was $428.7 million, compared to $411.3 million at the end of the prior year, reflecting an increase in order volume. We expect approximately 78 percent of the backlog in this segment to be fulfilled in fiscal 2023, with the remainder expected to be filled in fiscal 2024 and beyond; however, the timing of backlog may be impacted by project delays.

Backlog is not a significant metric for the Architectural Glass segment, as orders are typically booked and billed within a short time-frame.

Backlog in the Architectural Services segment as of fiscal year-end was $517.7 million, compared to $570.9 million at the end of the prior year, due to execution of projects in backlog, timing of firm orders, and signed contracts. We expect approximately 61 percent of the backlog in this segment to be filled during fiscal 2023, with the remainder expected to be filled in fiscal 2024 and beyond; however, the timing of backlog may be impacted by project delays.

Backlog is not a significant metric for the LSO segment, as orders are typically booked and billed within a short time-frame.

Compliance with Government Regulations

We are subject to various environmental and occupational safety and health laws and regulations in the United States and in other countries in which we operate. These laws and regulations relate to, among other things, our use and storage of hazardous materials in our manufacturing operations and associated air emissions and discharges to surface and underground waters. We have several continuing programs designed to ensure compliance with foreign, federal, state and local environmental and occupational safety and health laws and regulations. We contract with outside vendors to collect and dispose of waste at our production facilities in compliance with applicable environmental laws. In addition, we have procedures in place that enable us to properly manage the regulated materials used in and wastes created by our manufacturing processes. We believe we are currently in material compliance with all such laws and regulations. While we will continue to incur costs for compliance with government regulations for our ongoing operations, we do not expect these to have a material effect upon our capital expenditures, earnings or competitive position. At one manufacturing facility in our Architectural Framing Systems segment, we are continuing to work to remediate historical environmental impacts. These remediation activities are being conducted without significant disruption to our operations.

7

---

Table of Contents

Human Capital Resources

The Company had approximately 5,500 employees on February 26, 2022, down from 6,100 employees on February 27, 2021. As of February 26, 2022, approximately 420 of these employees were represented by U.S. labor unions.

Competition for qualified employees in the markets and industries in which we operate is intense, and the success of our Company depends on our ability to attract, select, develop and retain a productive and engaged workforce. Investing in our employees and their well-being, offering competitive compensation and benefits, promoting diversity and inclusion, and adopting positive human capital management practices are critical components of our corporate strategy.

Health, Wellness and Safety

The safety of our employees is integral to our Company. Providing a safe and secure work environment is one of our highest priorities and we devote significant time and resources to workplace safety. Our safety programs are designed to comply with stringent regulatory requirements and to meet or exceed best practices in our industry. This commitment requires focus and dedication to fundamental aspects of our business to minimize the risk of accidents, injury, and exposure to health hazards. We utilize a safety culture assessment process along with a safety compliance audits to monitor safety programs within our businesses. These assessments and audits provide suggestions for continuous improvement in safety programs and measure employee engagement. In addition, the programs encourage the development of a proactive, inter-dependent safety culture in which leadership and employees interact to ensure safety is viewed as everyone’s responsibility.

We offer comprehensive health and wellness programs for our employees. In addition to standard health programs including medical insurance and preventive care, we have a variety of resources available to employees relating to physical and mental wellness.

The COVID-19 pandemic has magnified the importance of keeping our employees safe and healthy. In response to the pandemic, we have taken actions consistent with recommendations of the U.S. Centers for Disease Control and Prevention and other local, state, and federal government agencies, to protect our employees.

Diversity, Equity and Inclusion

Our diversity, equity and inclusion program promotes a workplace where each employee’s abilities are recognized, respected, and utilized to further the Company’s goals. Our aim is to create an environment where people feel included as a part of a team because of their diversity of outlooks, perspectives, and characteristics, which ultimately adds value for our Company. We strive to create a culture of inclusion, reduce bias in our talent practices, and invest in and engage with our communities. We conduct diversity and code of conduct trainings with employees and managers to make clear our views on diversity and promote an inclusive and diverse workplace, where all individuals feel respected and part of a team regardless of their race, national origin, ethnicity, gender, age, religion, disability, sexual orientation or gender identity.

Talent Management and Development

Our talent management program is focused on developing employees and leaders to meet the Company’s evolving needs. Managers actively engage with their employees to provide coaching and feedback and identify training and development opportunities to improve performance in the employee’s current role and to position the employee for future growth. Training and development opportunities include new-hire training, job specific training, stretch assignments, and safety training. The Company also offers leadership development opportunities, such as our Apogee Leadership Program, along with technical training for engineers, designers and sales staff. In addition, the Company offers an education assistance program in which certain eligible employees receive tuition reimbursement to help defray the costs associated with their continuing education. Our executive leadership and Human Resources teams regularly conduct talent reviews and succession planning to assist with meeting critical talent and leadership needs.

International Sales

Information regarding export and international sales is included in Item 8, Financial Statements and Supplementary Data, within Note 15 of our Consolidated Financial Statements.

Available Information

The Company maintains a website at www.apog.com. Through a link to a third-party content provider, our website provides free access to the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and, if applicable, amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), as soon as reasonably practicable after electronic filing such material with, or furnishing it to, the Securities and Exchange Commission (SEC). These reports are also available on the SEC's website at www.sec.gov. Also available on our website are various corporate governance documents, including our Code of Business Ethics and Conduct, Corporate Governance Guidelines, and charters for the Audit, Compensation, and Nominating and Corporate Governance Committees of the Board of Directors.

8

---

Table of Contents

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Name

Age

Positions with Apogee Enterprises and Past Experience

Ty R. Silberhorn

54

Chief Executive Officer of the Company since January 2021. Prior to joining the Company, Mr. Silberhorn worked for 3M, a diversified global manufacturer and technology company, most recently serving as Senior Vice President of 3M's Transformation, Technologies and Services from April 2019 through December 2020. Prior to this position and since 2001, he held several 3M global business unit leadership roles, serving as Vice President and General Manager for divisions within Safety & Industrial, Transportation & Electronics, and the Consumer business groups.

Curtis Dobler

56

Executive Vice President and Chief Human Resources Officer since April 2019. Prior to joining the Company, Mr. Dobler served as Executive Vice President and Chief Human Resources Officer at Associated Materials, Inc., a manufacturer and distributor of exterior residential building products, from 2015 through 2019.

Meghan M. Elliott

45

Vice President, General Counsel and Secretary of the Company since June 2020. Prior to this role, Ms. Elliott served as Assistant General Counsel for the Company since 2014.

Nisheet Gupta

47

Executive Vice President and Chief Financial Officer of the Company since June 2020. Prior to joining the Company, Mr. Gupta served Vice President of Global Finance Operations at Land O’Lakes, a leading agribusiness and food company, since 2017. Prior to joining Land O’ Lakes, Mr. Gupta worked at Diebold Nixdorf, a banking solutions and retail technology systems company, holding various finance roles of increasing responsibility in Diebold Nixdorf’s financial organization, from 2011 to 2017.

Gary R. Johnson

60

Senior Vice President of the Company since 2018, Treasurer and Vice President since 2001 and an employee of the Company since 1995.

Brent C. Jewell

47

President of Architectural Framing Systems segment since August 2019. Prior to this role, Mr. Jewell served as Senior Vice President, Business Development and Strategy for the Company from May 2018 to August 2019 and in Senior leadership positions at Valspar, a developer, manufacturer and distributor of paints and coatings, from 2010 to 2017.

Troy R. Johnson

48

President of Apogee’s Architectural Services segment (Harmon) since March 2020. Prior to this role, Mr. T. Johnson served in several leadership roles in the Architectural Services segment since 2011.

Nick C. Longman

50

President of the Architectural Glass segment since June 2021. Prior to joining the Company, Mr. Longman served as Chief Executive Officer and Chief Operating Officer for Harvey Building Products, a manufacturer of windows, doors and accessory products, from March 2018 to November 2020 and in various functional and business leadership roles at Colfax Fluid Handling, a diversified technology company, from 2012 to 2018.

ITEM 1A. RISK FACTORS

Our business faces many risks. Any of the risks discussed below, or elsewhere in this Form 10-K or our other filings with the Securities and Exchange Commission, could have a material adverse impact on our business, financial condition or results of operations.

COVID-19 Pandemic Risks

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

To date, we have experienced delays in commercial construction projects and other adverse consequences due to the COVID-19 pandemic. Quarantines and "stay in place" orders, the timing and length of containment and eradication solutions, travel restrictions, construction site closures and project delays, absenteeism by infected workers, labor shortages and other disruptions to our supply chain or to our customers, have adversely impacted our sales and operating results. In addition, the pandemic contributed to an economic downturn that has impacted demand for certain of our products and services. Order lead times have been, and may continue to be, extended or delayed. Within the LSO segment, we also experienced the temporary closure of many of our customer's retail locations. We also were required temporarily to shut down our factories in this segment to comply with government "stay in place" orders.

We expect this global pandemic to continue to have an impact on our future revenue and results of operations, although the negative impacts on our business directly due to the COVID-19 pandemic had moderated by the end of fiscal 2022. The extent to which COVID-19 will continue to impact our businesses in the future will depend on numerous evolving factors including, but not limited to, the emergence of new variants of the coronavirus, such as the Delta and Omicron variants, and the effectiveness of ongoing public health initiatives, which have been boosted by vaccine production and distribution.

9

---

Table of Contents

Market and Industry Risks

North American and global economic and industry-related business conditions materially affect our sales and results of operations

Our Architectural Framing Systems, Architectural Glass and Architectural Services segments are significantly influenced by North American economic conditions and the cyclical nature of the North American commercial construction industry. The commercial construction industry is impacted by macroeconomic trends, such as availability of credit, employment levels, consumer confidence, interest rates and commodity prices. In addition, changes in architectural design trends, demographic trends, and/or remote work trends could negatively impact demand for our products. To the extent changes in these factors negatively impact the overall commercial construction industry, our revenue and profits could be significantly reduced.

Our LSO segment primarily depends on the strength of the retail custom picture framing industry. This industry is dependent on consumer confidence and the conditions of the U.S. economy. A decline in consumer confidence, whether as a result of an economic slowdown (due to COVID-19 concerns discussed above or otherwise), uncertainty regarding the future or other factors, could result in a decrease in net sales and operating income of this segment.

Global instability and uncertainty arising from events outside of our control, such as significant natural disasters, political crises, public health crises and pandemics, and/or other catastrophic events could materially affect our results of operations

Natural disasters, political crises, public health crises, such as the current COVID-19 pandemic, and other catastrophic events or other events outside of our control, including Russia's invasion of Ukraine, may negatively impact our facilities or the facilities of third parties on which we depend, have broader adverse impacts on the commercial construction market, consumer confidence and spending, and/or impact both the well-being of our employees and our ability to operate our facilities. These types of disruptions or other events outside of our control could affect our business negatively, cause delays or cancellation of commercial construction projects or cause us to temporarily close our facilities, harming our operating results. In addition, if any of our facilities, including our manufacturing, finishing or distribution facilities, or the facilities of our suppliers, third-party service providers, or customers, is affected by natural disasters, political crises, public health crises, or other catastrophic events or events outside of our control, our business and operating results could suffer.

New competitors or specific actions of our existing competitors could materially harm our business

We operate in competitive industries in which the actions of our existing competitors or new competitors could result in loss of customers and/or market share. Changes in our competitors' products, prices or services could negatively impact our share of demand, net sales or margins.

Our Architectural Framing Systems and Architectural Glass segments have seen an increase in imports of products into the U.S. from international suppliers due to the relative strength of the U.S. dollar. If foreign imports occur at increased levels for extended periods of time, our net sales and margins in those segments could be negatively impacted.

Our LSO segment competes with several international specialty glass manufacturers and international and domestic acrylic suppliers. If these competitors are able to successfully improve their product attributes, service capabilities and production capacity and/or increase their sales and marketing focus in the U.S. custom picture framing market, this segment's net sales and margins could be negatively impacted.

Our customer dependence in the LSO segment creates a significant risk of reduced demand for our products

The LSO segment is highly dependent on a relatively small number of customers for its sales, while working to grow in new markets and with new customers. Accordingly, loss of a significant customer, a significant reduction in pricing, or a shift to a less favorable mix of value-added picture framing glass or acrylic products for one or more of those customers could materially reduce LSO net sales and operating results.

Strategic Risks

We could be unable to effectively manage and implement our new enterprise strategy, which could have a material adverse effect on our business, financial condition, and results of operations.

Our growth strategy includes differentiating our product and service offerings, shifting our business mix toward higher operating margins and return on invested capital performance, and shifting away from our historical, decentralized operating model. Execution of this strategy will require additional investments of time and resources and could fail to achieve the desired results. For example, we may be unable to increase our sales and earnings by differentiating our product and service offerings in a cost-effective manner. We may fail to accurately predict future customer needs and preferences, and thus focus on the wrong business mix. Our centralized operating system may not produce the desired operating efficiencies.

Risks related to acquisitions and integration activities could adversely affect our operating results

We have completed and may complete additional acquisitions in the future to accelerate the execution of our growth strategies, including new geographies, adjacent market sectors and new product introductions. There are risks inherent in completing acquisitions, including:

10

---

Table of Contents

•diversion of management’s attention from existing business activities;

•difficulties or delays in integrating and assimilating information and financial systems, operations and products of an acquired business or other business venture or in realizing projected efficiencies, growth prospects, cost savings and synergies;

•potential loss of key employees, customers and suppliers of the acquired businesses or adverse effects on relationships with existing customers and suppliers;

•adverse impact on overall profitability if the acquired business does not achieve the return on investment projected at the time of acquisition; and

•with respect to the acquired assets and liabilities, inaccurate assessment of additional post-acquisition capital investments; undisclosed, contingent or other liabilities; problems executing backlog of material supply or installation projects; unanticipated costs; and an inability to recover or manage such liabilities and costs.

If one or more of these risks were to arise in a material manner, our operating results could be negatively impacted.

Operational Risks

If we are not able effectively to utilize and manage our manufacturing capacity, our results of operations will be negatively affected

Near-term performance depends, to a significant degree, on our ability to provide sufficient available capacity and appropriately utilize existing production capacity. The failure to successfully maintain existing capacity, or manage unanticipated interruptions in production, successfully implement planned capacity expansions, and/or make timely investments in additional physical capacity and supporting technology systems could adversely affect our operating results.

Loss of key personnel and inability to source sufficient labor could adversely affect our operating results

Our success depends on the skills of the Company's leadership, construction project managers and other key technical personnel, and our ability to secure sufficient manufacturing and installation labor. In recent years, strong residential and commercial construction and low U.S. unemployment have caused increased competition for experienced construction project managers and other labor. If we are unable to retain existing employees, provide a safe and healthy working environment, and/or recruit and train additional employees with the requisite skills and experience, our operating results could be adversely impacted.

Continuing inflation may negatively impact our profitability.

Rising inflation, interest rates, or construction costs could reduce the demand for our products and services and impact our profitability. Higher interest rates may make it more expensive to finance construction projects, and as a result, reduce the number of projects and the demand for our products and services. Cost inflation, including significant cost increases for freight, aluminum, glass, paint and other materials used in our operations, has impacted, and could continue to impact, our profitability. The availability and price of necessary raw materials for our products may be negatively impacted by the international sanctions and market volatility caused by Russia’s invasion of Ukraine. Continued supply and demand imbalances for these resources may continue to exert upward pressure on costs. Furthermore, in some of our segments, we operate on contracts wherein we bear part or all of the risk of inflation on materials costs and the cost of installation services. Our ability to mitigate these costs, or recover the cost increases through price increases, may continue to lag the cost increases, which could negatively impact our margins.

If we are unable to manage our supply and distribution chains effectively our results of operations will be negatively affected

Our Architectural Framing Systems and Architectural Services segments use aluminum as a significant input to their products and our operating results in those two segments could be negatively impacted by supply chain disruptions and adverse price movements in the market for raw aluminum. In recent years, we have seen increased volatility in the price of aluminum that we purchase from both domestic and international sources. Due to our Architectural Framing Systems segment presence in Canada, we have significant cross-border activity, as our Canadian businesses purchase inputs from U.S.-based suppliers and sell to U.S.-based customers. A significant change in U.S. trade policy with Canada could, therefore, have an adverse impact on our net sales and operating results.

Our Architectural Glass and LSO segments use raw glass as a significant input to their products. We periodically experience a tighter supply of raw glass when there is growth in automotive manufacturing and residential and non-residential construction. Failure to acquire a sufficient amount of raw glass on terms as favorable as current terms, including as a result of a significant unplanned downtime or shift in strategy at one or more of our key suppliers, could negatively impact our operating results.

Our suppliers are subject to the fluctuations in general economic cycles. Global economic conditions may impact their ability to operate their businesses, including recent impacts from the evolving COVID-19 pandemic. They may also be impacted by the increasing costs or availability of raw materials, labor and distribution, resulting in demands for less attractive contract terms or an inability for them to meet our requirements or conduct their own businesses. The performance and financial condition of one

11

---

Table of Contents

or more suppliers may cause us to alter our business terms or to cease doing business with a particular supplier or suppliers, or change our sourcing practices generally, which could in turn adversely affect our business and financial condition.

If we encounter problems with distribution, our ability to deliver our products to market could be adversely affected. Our operations are vulnerable to interruptions in the event of work stoppages, whether due to health concerns, such as COVID-19 or otherwise, labor disputes or shortages, and natural disasters that may affect our distribution and transportation to job sites. Moreover, our distribution system includes computer-controlled and automated equipment, which may be subject to a number of risks related to data and system security or computer viruses, the proper operation of software and hardware, power interruptions or other system failures. If we encounter problems with our distribution systems, our ability to meet customer and consumer expectations, manage inventory, manage transportation-related costs, complete sales and achieve operating efficiencies could be adversely affected.

Product quality issues and product liability claims could adversely affect our operating results

We manufacture and/or install a significant portion of our products based on the specific requirements of each customer. We believe that future orders of our products or services will depend on our ability to maintain the performance, reliability, quality and timely delivery standards required by our customers. We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products, and there is no certainty we will prevail on these claims. If our products have performance, reliability or quality problems, or products are installed using incompatible glazing materials or installed improperly (by us or a customer), we may experience additional warranty and other expenses; reduced or canceled orders; higher manufacturing or installation costs; or delays in the collection of accounts receivable. Additionally, product liability and warranty claims, including relating to the performance, reliability or quality of our products and services, could result in costly and time-consuming litigation that could require significant time and attention of management and involve significant monetary damages that could negatively impact our operating results. There is also no assurance that the number and value of product liability and warranty claims will not increase as compared to historical claim rates, or that our warranty reserve at any particular time is sufficient. No assurance can be given that coverage under insurance policies, if applicable, will be adequate to cover future product liability claims against us. If we are unable to recover on insurance claims, in whole or in part, or if we exhaust our available insurance coverage at some point in the future, then we might be forced to expend legal fees and settlement or judgment costs, which could negatively impact our profitability, results of operations, cash flows and financial condition.

Project management and installation issues could adversely affect our operating results

Some of our segments are awarded fixed-price contracts that include material supply and installation services. Often, bids are required before all aspects of a construction project are known. An underestimate in the amount of labor required and/or cost of materials for a project; a change in the timing of the delivery of product; system design errors; difficulties or errors in execution; or significant project delays, caused by us or other trades, could result in failure to achieve the expected results. Any one or more of such issues could result in losses on individual contracts that could negatively impact our operating results.

Difficulties in maintaining our information technology systems, and potential cybersecurity threats, could negatively affect our operating results and/or our reputation

Our operations are dependent upon various information technology systems that are used to process, transmit and store electronic information, and to manage or support our manufacturing operations and a variety of other business processes and activities, some of which are managed by third-parties. We could encounter difficulties in maintaining our existing systems, developing and implementing new systems or in our efforts to standardize information technology systems across our business units. Such difficulties could lead to disruption in business operations and/or significant additional expenses that could adversely affect our results.

Additionally, our information technology and Internet based systems, and those of our third-party service providers, are subject to cyber-attacks of increasing frequency and sophistication. These systems have in the past been, and may in the future be, subject to cyber-attacks and other attempts to gain unauthorized access, breach, damage, disrupt or otherwise compromise such systems, none of which have been material to us to date. These cyber threats pose a risk to the security of our systems and networks, and the confidentiality, availability and integrity of our data. Should such an attack succeed, it could lead to the compromise of confidential information, manipulation and destruction of data and product specifications, production downtimes, disruption in the availability of financial data, or misrepresentation of information via digital media. The occurrence of any of these events could adversely affect our reputation and could result in litigation, loss of data and intellectual property, regulatory action, project delay claims, and increased costs and operational consequences of implementing further data protection systems.

Violations of legal and regulatory compliance requirements, including environmental laws, and changes in existing legal and regulatory requirements, may have a negative impact on our business and results of operations.

We are subject to a legal and regulatory framework imposed under federal and state laws and regulatory agencies, including

12

---

Table of Contents

laws and regulations that apply specifically to U.S. public companies and laws and regulations applicable to our manufacturing and construction site operations. Our efforts to comply with evolving laws, regulations, and reporting standards may increase our general and administrative expenses, divert management time and attention, or limit our operational flexibility, all of which could have a material adverse effect on our business, financial position, and results of operations. Additionally, new laws, rules, and regulations, or changes to existing laws or their interpretations, could create added legal and compliance costs and uncertainty for us.

We use hazardous materials in our manufacturing operations, and have air and water emissions that require controls. Accordingly, we are also subject to federal, state and local environmental laws and regulations, including those governing the storage and use of hazardous materials and disposal of wastes. A violation of such laws and regulations, or a release of such substances, may expose us to various claims, including claims by third parties, as well as remediation costs and fines.

Financial Risks

We are self-insured for certain costs associated with our operations and an increase in our insurance claims and expenses may have a material negative impact on our operating results

We obtain third-party insurance to provide coverage for potential risk in areas such as employment practices, workers' compensation, directors and officers, automobile, engineer's errors and omissions, product rework and general liability, as well as medical insurance and various other coverages. However, we retain a high amount of risk on a self-insured basis through our wholly-owned insurance subsidiary, in particular for product liability, medical and workers’ compensation claims. Therefore, a significant increase in the number or size of these claims could have a material adverse effect on our operating results.

Foreign currency effects could negatively affect our sales and operating income

When the U.S. dollar strengthens against foreign currencies, imports of products into the U.S. produced by international competitors become more price competitive and exports of our U.S.-fabricated products become less price competitive. If we are not able to counteract these types of price pressures through superior quality, service and prudent hedging programs, our net sales and operating income could be negatively impacted. Additionally, our international subsidiaries report their results of operations and financial position in their relevant functional currencies (local country currency), which are then translated into U.S. dollars. As the relationship between these currencies and the U.S. dollar changes, there could be a negative impact on our reported results and financial position.

Results can differ significantly from our expectations and the expectations of analysts, which could have an adverse affect on the market price of our common stock

Our sales and earnings guidance and resulting external analyst estimates are largely based on our view of our business and the broader commercial construction market. Further, there is additional risk in our ability to accurately forecast our operational and financial performance and provide earnings guidance as a result of evolving conditions because of the COVID-19 pandemic and related economic downturn, continued inflationary cost increases and uncertainty resulting from the Russian invasion of Ukraine. Failure to meet our guidance or analyst expectations for net sales and earnings would have an adverse impact on the market price of our common stock.

We may experience further impairment of our goodwill, indefinite- and finite-lived intangible assets and long-lived assets, in the future, which could adversely impact our financial condition and results of operations

Our assets include a significant amount of goodwill, indefinite- and finite-lived intangible assets and long-lived assets. We evaluate goodwill and indefinite-lived intangible assets for impairment annually in our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying value of a reporting unit may not be recoverable. We evaluate finite-lived intangible assets and long-lived assets for impairment if events or changes in circumstances indicate that the carrying value of the long-lived asset may not be recoverable. The assessment of impairment involves significant judgment and projections about future performance.

Based on our annual impairment valuation analysis performed in the fourth quarter of fiscal 2022, there was no goodwill impairment identified. During fiscal 2021, our annual impairment analysis determined impairment of goodwill at two of our reporting units within the Architectural Framing Systems segment and we determined impairment of our EFCO trade name. As a result, in the prior year, we recorded a goodwill impairment expense and an indefinite-lived intangible asset impairment expense of $63.8 million and $6.3 million, respectively.

During the fourth quarter of fiscal 2022, based on the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, we determined impairment of indefinite and finite-lived intangibles within the Architectural Framing Systems segment and we recorded intangible impairment expense of $49.5 million. Refer to additional information included within Notes 1 and 6 to the Financial Statements contained in Item 8 within this Annual Report on Form 10-K.

13

---

Table of Contents

The discounted cash flow projections and revenue projections used in these analyses are 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, further impairment could be indicated and we could incur an additional non-cash impairment expense that would negatively impact our financial condition and results of operations.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The following table lists, by segment, the Company's principal physical properties as of February 26, 2022. We believe these properties are generally in good operating condition, suitable for their respective uses and adequate for our current needs as our business is presently conducted.

Property Location

Owned/ Leased

Function

Architectural Framing Systems segment

Wausau, WI

Owned

Manufacturing/Administrative

Stratford, WI

Owned

Manufacturing

Reed City, MI

Owned

Manufacturing

Walker, MI

Leased

Manufacturing/Administrative

Dallas, TX

Leased

Manufacturing

Toronto, ON Canada

Leased

Manufacturing/Warehouse/Administrative

Brampton, ON Canada

Leased

Manufacturing/Warehouse/Administrative

Monett, MO

Owned

Manufacturing/Warehouse/Administrative

Architectural Glass segment

Owatonna, MN

Owned

Manufacturing/Administrative

Nazaré Paulista, Brazil

Owned(1)

Manufacturing/Administrative

Architectural Services segment

Minneapolis, MN

Leased

Administrative

West Chester, OH

Leased

Manufacturing

Mesquite, TX

Leased

Manufacturing

Glen Burnie, MD

Leased

Manufacturing

Orlando, FL

Leased

Manufacturing

LSO segment

McCook, IL

Leased

Manufacturing/Warehouse/Administrative

Faribault, MN

Owned

Manufacturing/Administrative

Other

Minneapolis, MN

Leased

Administrative

(1)This is an owned facility; however, the land is leased from the city.

ITEM 3. LEGAL PROCEEDINGS

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. We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products. The Company is also subject to litigation arising out of areas such as employment practices, workers compensation and general liability matters. Although it is very difficult to accurately predict the outcome of any such proceedings, facts currently available indicate that no matters will result in losses that would have a material adverse effect on the results of operations, cash flows or financial condition of the Company.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

14

---

Table of Contents

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Apogee common stock is traded on the NASDAQ Stock Market under the ticker symbol "APOG". As of April 8, 2022, there were 1,124 shareholders of record and 14,507 shareholders for whom securities firms acted as nominees.

Dividends

Quarterly, the Board of Directors evaluates declaring dividends based on operating results, available funds and the Company's financial condition. Cash dividends have been paid each quarter since 1974. The chart below shows quarterly and annual cumulative cash dividends per share for the past three fiscal years.

Fiscal Year						First						Second						Third						Fourth						Total
2022						$	0.2000					$	0.2000					$	0.2000					$	0.2200					$	0.8200
2021						0.1875						0.1875						0.1875						0.2000						0.7625
2020						0.1750						0.1750						0.1750						0.1875						0.7125

Purchases of Equity Securities by the Company

The following table provides information with respect to purchases made by the Company of its own stock during the fourth quarter of fiscal 2022:

Period						Total Number of Shares Purchased (a)						Average Price Paid per Share						Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)						Maximum Number of Shares that May Yet Be Purchased under the Plans or Programs (b)
November 28, 2021 through December 24, 2021						238,938						$	43.76					237,872						1,124,128
December 25, 2021 through January 22, 2022						677,804						48.58						676,025						2,448,103
January 23, 2022 through February 26, 2022						623,565						45.02						623,565						1,824,538
Total						1,540,307						$	45.92					1,537,462						1,824,538

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

(b) In fiscal 2004, announced on April 10, 2003, the Board of Directors authorized the repurchase of 1,500,000 shares of Company stock. The Board increased the authorization by 750,000 shares, announced on January 24, 2008; by 1,000,000 shares on each of the announcement dates of October 8, 2008, January 13, 2016, January 9, 2018, January 14, 2020, and October 7, 2021; and by 2,000,000 shares, announced on October 3, 2018 and January 14, 2022. The repurchase program does not have an expiration date.

Comparative Stock Performance

The graph below compares the cumulative total shareholder return on a $100 investment in our common stock for the last five fiscal years with the cumulative total return on a $100 investment in the Russell 2000 Index, a broad equity market index, and the Standard & Poor's Small Cap 600 Growth Index, an index that includes companies of similar market capitalization. The graph assumes an investment at the close of trading on March 4, 2017, and also assumes the reinvestment of all dividends.

15

---

Table of Contents

						2017						2018						2019						2020						2021						2022
Apogee						$	100.00					$	76.44					$	63.62					$	54.34					$	69.37					$	86.10
S&P Small Cap 600 Growth Index						100.00						112.36						120.65						112.72						165.53						162.88
Russell 2000 Index						100.00						111.31						116.96						110.20						166.40						155.92

We selected the Standard & Poor's Small Cap 600 Growth Index as an index of companies with similar market capitalization because we are unable to identify a peer group of companies similar to us in size and scope of business activities or a widely recognized published industry index that accurately reflects our diverse business activities. Most of our direct competitors in our various business units are either privately owned or divisions of larger, publicly owned companies.

ITEM 6. [RESERVED]

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Annual Report on Form 10-K, including Management's Discussion and Analysis, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current views with respect to future events and financial performance. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” "will," "continue" and similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All forecasts and projections in this document are “forward-looking statements,” and are based on management's current expectations or beliefs of the Company's near-term results, based on current information available pertaining to the Company, including the risk factors noted under Item 1A in this Form 10-K. From time to time, we also may provide oral and written forward-looking statements in other materials we release to the public, such as press releases, presentations to securities analysts or investors, or other communications by the Company. Any or all of our forward-looking statements in this report and in any public statements we make could be materially different from actual results.

Accordingly, we wish to caution investors that any forward-looking statements made by or on behalf of the Company are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other risk factors include, but are not limited to, the risks and uncertainties set forth under Item 1A in this Form 10-K, all of which are incorporated by reference into this Item 7.

16

---

Table of Contents

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

Overview

We are a leader in the design and development of value-added glass and metal products and services. Our four reporting segments are: Architectural Framing Systems, Architectural Glass, Architectural Services and Large-Scale Optical Technologies (LSO).

During fiscal 2022, we conducted a strategic review of our business and the markets we serve in order to establish a new enterprise strategy with three key elements, as discussed in Item 1 on page 4 of this Form 10-K. As part of executing our enterprise strategy, during the second quarter of fiscal 2022, we announced plans to realign and simplify our business structure which resulted in the closure of two facilities within the Architectural Glass segment, in Dallas, Texas and Statesboro, Georgia. These closures were made in order to focus the Architectural Glass segment on premium, high-performance products. During the fourth quarter of fiscal 2022, we finalized plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, and as a result, we recorded impairment expense of $49.5 million on indefinite- and finite-lived intangible assets. During fiscal 2022, we saw inflation on raw materials and freight, which we were able to largely offset with pricing actions by the end of our fiscal fourth quarter. We also have experienced supply chain challenges during fiscal 2022 but are actively working to ensure continued supply of key materials.

Fiscal 2022 summary of results:

•Consolidated net sales were $1.3 billion, an increase of 7 percent from $1.2 billion in fiscal 2021.

•Operating income was $22.0 million, a decrease of 14 percent from $25.5 million in the prior year.

•Diluted EPS was $0.14, compared to $0.59 in the prior year, a decrease of 76 percent.

•Adjusted operating income was $82.6 million, a decrease of 5 percent compared to the prior year, and adjusted diluted EPS was $2.48 in fiscal 2022, an increase of 3 percent compared to the prior year. Refer to the table below for a reconciliation to GAAP of these adjusted amounts.

Reconciliation of Non-GAAP Financial Information
Adjusted Operating Income and Adjusted Net Earnings per Diluted Common Share
(Unaudited)
																		Diluted per share amounts
						Year-ended												Year-ended
(In thousands)						February 26, 2022						February 27, 2021						February 26, 2022						February 27, 2021
Operating income						$	22,045					$	25,527					$	0.14					$	0.59
Impairment expense on intangible assets and goodwill						49,473						70,069						1.96						2.66
Restructuring						30,512						4,884						1.21						0.19
Gain on sale of building						(19,456)						(19,346)						(0.77)						(0.74)
Impairment of equity investment						N/A						N/A						0.12						—
COVID-19						—						4,988						—						0.19
Post-acquisition and acquired project matters						—						1,000						—						0.04
Income tax impact on above adjustments (1)						N/A						N/A						(0.17)						(0.53)
Adjusted operating income						$	82,574					$	87,122					$	2.48					$	2.40
(1) Income tax impact calculated using an estimated statutory tax rate of 25%, which reflects the estimated blended statutory tax rate for the jurisdiction in which the charge or income occurred. Income tax impact in the current year excludes the tax benefit related to the impairment expense in certain jurisdictions due to a tax valuation allowance. In the prior year, income tax impact excludes the amount of impairment expense that is non-deductible in the applicable jurisdiction.

Adjusted operating income and adjusted earnings per diluted share (adjusted diluted EPS) are supplemental non-GAAP financial measures provided by the Company to assess performance on a more comparable basis from period-to-period by excluding amounts that management does not consider part of core operating results. Management uses these non-GAAP measures to evaluate the Company’s historical and prospective financial performance, measure operational profitability on a consistent basis, and provide enhanced transparency to the investment community.

17

---

Table of Contents

Return on average invested capital (ROIC) is a non-GAAP financial measure that we define as operating income (adjusted for certain items that are unusual in nature or whose fluctuations from period to period do not necessarily correspond to changes in the operations of the Company) after tax, divided by average invested capital. We believe this measure is useful in understanding operational performance and capital allocation over time. This measure is not calculated in accordance with GAAP. Certain information necessary to calculate this measure on a GAAP basis is dependent on future events, some of which are beyond our control, and cannot be predicted without unreasonable efforts. It is important to note that these factors could be material to Apogee’s results computed in accordance with GAAP.

These non-GAAP measures should be viewed in addition to, and not as an alternative to, the reported financial results of the Company prepared in accordance with GAAP. Other companies may calculate these measures differently, thereby limiting the usefulness of the measures for comparison with other companies.

Results of Operations

Net Sales

(Dollars in thousands)						2022						2021						2020						2022 vs. 2021						2021 vs. 2020
Net sales						$	1,313,977					$	1,230,774					$	1,387,439					6.8		%				(11.3)		%

Fiscal 2022 Compared to Fiscal 2021

Net sales in fiscal 2022 increased by 6.8 percent compared to fiscal 2021, driven by record revenue in the LSO and Architectural Services segments and growth in the Architectural Framing Systems segment, partially offset by decreased volume in the Architectural Glass Segment.

Fiscal 2021 Compared to Fiscal 2020

Net sales in fiscal 2021 decreased by 11.3 percent compared to fiscal 2020, reflecting end market softness and COVID-19 related volume declines in the Architectural Framing Systems, Architectural Glass and LSO segments, partially offset by increased volume in the Architectural Services segment, driven by execution of projects in backlog.

Performance

The relationship between various components of operations, as a percentage of net sales, is provided below.

(Percentage of net sales)						2022						2021						2020
Net sales						100.0		%				100.0		%				100.0		%
Cost of sales						79.1						77.6						77.0
Gross margin						20.9						22.4						23.0
Selling, general and administrative expenses						15.4						14.6						16.7
Impairment expense on intangible assets and goodwill						3.8						5.7						—
Operating income						1.7						2.1						6.3
Interest expense, net						0.3						0.4						0.7
Other (expense) income, net						(0.3)						0.1						0.1
Earnings before income taxes						1.1						1.8						5.7
Income tax expense						0.8						0.6						1.3
Net earnings						0.3		%				1.3		%				4.5		%
Effective income tax rate						74.9		%				31.7		%				22.4		%

Fiscal 2022 Compared to Fiscal 2021

Gross margin was 20.9 percent in fiscal 2022, a decrease of 150 basis points from fiscal 2021. This decrease was driven by $28.2 million of restructuring costs included in cost of sales incurred during fiscal 2022 related to restructuring actions announced in August 2021, as well as inflationary pressure on raw materials and freight within the Architectural Glass and Architectural Framing Systems segments. These costs were partially offset by $19.5 million of gain on sale of assets related to the sale of a manufacturing facility in the Architectural Glass segment and by positive impacts from continued recovery of the LSO segment (which closed for most of the first and second quarters of the prior year, based on COVID-related government directives).

Total selling, general and administrative (SG&A) expense for fiscal 2022, including impairment expense on goodwill and intangible assets noted in the table above, was 19.2 percent, a decrease of 110 basis points from fiscal 2021. This was driven by a $49.4 million impairment expense taken within the Architectural Framing Systems segment during the current year compared

18

---

Table of Contents

to a $70.1 million impairment expense taken within the Architectural Framing Systems segment in the prior year. In addition, we received a benefit of $4.9 million in fiscal 2022 compared to $7.4 million in fiscal 2021, as a result of a Canadian wage subsidy program offered to support Canadian business impacted by the COVID-19 pandemic, thereby offsetting cost actions that would have been taken had this subsidy not been secured.

Net interest expense declined by 10 basis points compared to the prior year, due to the lower average debt balance in fiscal 2022.

The effective tax rate for fiscal 2022 was 74.9 percent, compared to 31.7 percent in fiscal 2021, primarily due to the valuation allowance recorded against the tax benefit of the Sotawall impairment and the impact of certain permanent items in relation to reduced earnings in fiscal 2022.

Fiscal 2021 Compared to Fiscal 2020

Gross margin was 22.4 percent in fiscal 2021, a decrease of 60 basis points from fiscal 2020. This decrease was driven by the impact from lower volumes due to end market softness and COVID-19 related project delays, partially offset by strong project execution in the Architectural Services segment.

SG&A expense for fiscal 2021 including impairment expense on goodwill and intangible assets noted in the table above, was 20.3 percent, an increase of 360 basis points from fiscal 2020. This was driven by a $70.1 million impairment expense taken within the Architectural Framing Systems segment, partially offset by a $19.3 million gain on the sale-leaseback of a building within the Large-Scale Optical segment and $7.4 million of income related to a New Markets Tax Credit transaction within the Architectural Glass segment. In addition, we received a benefit of $7.4 million in fiscal 2021, as a result of a Canadian wage subsidy program offered to support Canadian business impacted by the COVID-19 pandemic, thereby offsetting cost actions that would have been taken had this subsidy not been secured.

Net interest expense declined by 30 basis points compared to the prior year, due to the lower average debt balance in fiscal 2021 and a favorable one-time legal settlement impacting interest.

The effective tax rate for fiscal 2021 was 31.7 percent, compared to 22.4 percent in fiscal 2020, primarily due to nondeductible goodwill impairment in Canada and the impact of the unfavorable permanent items in relation to reduced earnings in fiscal 2021.

Segment Analysis

Architectural Framing Systems

(In thousands)						2022						2021						2020						2022 vs. 2021						2021 vs. 2020
Net sales						$	596,608					$	570,850					$	686,596					4.5		%				(16.9)		%
Operating loss						(16,726)						(44,761)						36,110						(62.6)		%				N/M
Operating margin						(2.8)		%				(7.8)		%				5.3		%

Fiscal 2022 Compared to Fiscal 2021. Net sales increased 4.5 percent, or $25.8 million, from fiscal 2021, primarily reflecting flow through from pricing actions taken to offset inflation, partially offset by lower volume. The segment had an operating loss of $16.7 million and operating margin of (2.8) percent in fiscal 2022 compared to an operating loss of $44.8 million and operating margin of (7.8) percent in fiscal 2021, reflecting the impact of the $49.5 million and $70.1 million impairment expense and $1.7 million and $4.4 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively, partially offset by the benefit of $4.9 million and $7.4 million in fiscal 2022 and 2021, respectively, from a Canadian wage subsidy program offered to Canadian businesses impacted by the COVID-19 pandemic.

Fiscal 2021 Compared to Fiscal 2020. Net sales decreased 16.9 percent, or $115.7 million, from fiscal 2020, primarily reflecting lower order volume for short lead-time products and market-related project delays. The segment had an operating loss of $44.8 million and operating margin of (7.8) percent in fiscal 2021, compared to operating income of $36.1 million and operating margin of 5.3 percent in fiscal 2020, reflecting the impact of the $70.1 million impairment expense and leverage on the lower revenue, partially offset by cost reduction actions and the benefit of $7.4 million in fiscal 2021 from a Canadian wage subsidy program offered to Canadian businesses impacted by the COVID-19 pandemic.

19

---

Table of Contents

Architectural Glass

(In thousands)						2022						2021						2020						2022 vs. 2021						2021 vs. 2020
Net sales						$	309,241					$	330,256					$	387,191					(6.4)		%				(14.7)		%
Operating income						1,785						18,678						20,760						(90.4)		%				(10.0)		%
Operating margin						0.6		%				5.7		%				5.4		%

Fiscal 2022 Compared to Fiscal 2021. Fiscal 2022 net sales decreased 6.4 percent, or $21.0 million, over the prior year, primarily reflecting lower volume. Operating margin decreased 510 basis points for the fiscal year ended 2022 compared to the prior year period, as a result of $27.1 million of restructuring costs during the current year, as well as the impact of higher material and freight costs from inflation, partially offset by $19.5 million gain on sale of a manufacturing facility in Georgia. The prior year period also included $7.4 million of income related to a New Markets Tax Credit transaction.

Fiscal 2021 Compared to Fiscal 2020. Fiscal 2021 net sales decreased 14.7 percent, or $56.9 million, over fiscal 2020, due to market-related volume declines and project delays. Operating margin increased 30 basis points for the fiscal year ended 2021 compared to fiscal 2020, as a result of $7.4 million of income related to a New Markets Tax Credit transaction, offset by the impacts of lower volume and increased costs related to the small projects growth initiative.

Architectural Services

(In thousands)						2022						2021						2020						2022 vs. 2021						2021 vs. 2020
Net sales						$	349,386					$	295,807					$	269,140					18.1		%				9.9		%
Operating income						32,743						31,182						23,582						5.0		%				32.2		%
Operating margin						9.4		%				10.5		%				8.8		%

Fiscal 2022 Compared to Fiscal 2021. Net sales increased 18.1 percent, or $53.6 million, compared to the prior year, driven by increased volume from executing projects in backlog. Operating margin decreased 110 basis points over the prior year, reflecting the impact of inflation and isolated performance challenges on certain projects experienced during the first quarter of fiscal 2022.

Fiscal 2021 Compared to Fiscal 2020. Net sales increased 9.9 percent, or $26.7 million, compared to fiscal 2020, driven by increased volume from executing projects in backlog. Operating margin increased 170 basis points over fiscal 2020, primarily driven by improved volume leverage and strong project execution.

Large-Scale Optical Technologies (LSO)

(In thousands)						2022						2021						2020						2022 vs. 2021						2021 vs. 2020
Net sales						$	101,673					$	70,050					$	87,911					45.1		%				(20.3)		%
Operating income						23,618						31,203						22,642						(24.3)		%				37.8		%
Operating margin						23.2		%				44.5		%				25.8		%

Fiscal 2022 Compared to Fiscal 2021. Fiscal 2021 net sales increased 45.1 percent, or $31.6 million, compared to the prior year, reflecting a more favorable sales mix, as demand recovered from the impact of COVID in the prior year period. In fiscal 2021, most of the segment's customers and the segment's manufacturing operations were closed for a large part of the first and second quarters to comply with COVID-related government directives. The segment had operating margin of 23.2 percent in fiscal 2022 compared to operating margin of 44.5 percent in fiscal 2021, reflecting the impact of a $19.3 million gain on the sale-leaseback of a building recognized during the third quarter of the prior year, partially offset by the impacts of the temporary shutdown and the related lower volume.

Fiscal 2021 Compared to Fiscal 2020. Fiscal 2021 net sales decreased 20.3 percent, or $17.9 million, compared to fiscal 2020, as a result of the required COVID-related closure of most of the segment's customers and the segment's manufacturing locations for several months during the first half of fiscal 2021. The segment had operating margin of 44.5 percent in fiscal 2021 compared to operating margin of 25.8 percent in fiscal 2020, reflecting the impact of a $19.3 million gain on the sale-leaseback of a building recognized during the third quarter of fiscal 2021, partially offset by the impacts of the temporary shutdown and the related lower volume.

20

---

Table of Contents

Liquidity and Capital Resources

(In thousands)						2022						2021						2020
Operating Activities
Net cash provided by operating activities						$	100,471					$	141,863					$	107,262
Investing Activities
Capital expenditures						(21,841)						(26,165)						(51,428)
Proceeds on sale of property						30,599						25,108						5,307
Financing Activities
Payments on line of credit, net						—						(47,739)						(177,500)
(Repayment) borrowings on debt						(2,000)						(5,400)						150,000
Repurchase and retirement of common stock						(100,414)						(32,878)						(25,140)
Dividends paid						(20,266)						(19,601)						(18,714)

Operating Activities. Cash provided by operating activities was $100.5 million in fiscal 2022, a decrease of $41.4 million from fiscal 2021, primarily reflecting a decline in net earnings during the current fiscal year and the benefit in the prior year from reduced working capital and temporary actions related to the pandemic.

Investing Activities. Net cash provided by investing activities was $9.3 million in fiscal 2022, compared to net cash used by investing activities of $2.1 million in fiscal 2021, due to an increase of $5.5 million of proceeds from property sales in fiscal 2022 compared to fiscal 2021, related to the sale of an Architectural Glass manufacturing facility in Georgia in the fourth quarter of fiscal 2022, and reduced capital expenditures by $4.3 million in fiscal 2022 compared to fiscal 2021. In fiscal 2021, we sold an LSO manufacturing facility in Illinois, and in fiscal 2020, we sold an Architectural Framing manufacturing facility in Toronto.

Financing Activities. Cash used by financing activities was $120.6 million in fiscal 2022, compared to $107.9 million in fiscal 2021. In fiscal 2022, we paid dividends totaling $20.3 million and repurchased 2,292,846 shares under our authorized share repurchase program, at a total cost of $100.0 million. We repurchased 1,177,704 shares under the program in fiscal 2021 and 686,997 shares under the program in fiscal 2020. We have repurchased a total of 9,425,462 shares, at a total cost of $307.3 million, since the 2004 inception of this program. We have remaining authority to repurchase 1,824,538 shares under this program, which has no expiration date, and we will continue to evaluate making future share repurchases, depending on our cash flow and debt levels, market conditions, including the continuing effects of the COVID-19 pandemic, and other potential uses of cash.

As of February 26, 2022, no borrowings were outstanding under the revolving credit facility. As defined within the credit facility, we have two affirmative financial covenants which require us to stay below a maximum leverage ratio and to maintain a minimum interest expense-to-EBITDA ratio. At February 26, 2022, we were in compliance with both financial covenants.

Other Financing Activities. The following summarizes our significant contractual obligations that impact our liquidity as of February 26, 2022:

						Payments Due by Fiscal Period
(In thousands)						2023						2024						2025						2026						2027						Thereafter						Total
Debt obligations						$	1,000					$	—					$	150,000					$	—					$	—					$	12,000					$	163,000
Operating leases (undiscounted)						13,604						11,311						9,950						7,929						6,423						6,735						55,952
Purchase obligations						199,918						5,976						1,433						1,433						487						—						209,247
Total cash obligations						$	214,522					$	17,287					$	161,383					$	9,362					$	6,910					$	18,735					$	428,199

Debt obligations in the table above include a $150.0 million term loan that matures in fiscal 2025 and $13.0 million of industrial revenue bond obligations that mature in fiscal years 2023 through 2043.

We acquire the use of certain assets through operating leases, such as warehouses, manufacturing equipment, office equipment, hardware, software and vehicles. While many of these operating leases have termination penalties, we consider the risk related to termination penalties to be minimal.

Purchase obligations in the table above relate to raw material commitments and capital expenditures.

21

---

Table of Contents

We expect to make contributions of approximately $0.7 million to our defined-benefit pension plans in fiscal 2023, which will equal or exceed our minimum funding requirements.

As of February 26, 2022, we had reserves of $3.3 million and $0.5 million for long-term unrecognized tax benefits and environmental liabilities, respectively. We are unable to reasonably estimate in which future periods the remaining unrecognized tax benefits will ultimately be settled.

At February 26, 2022, we had ongoing letters of credit of $16.4 million related to industrial revenue bonds, construction contracts and insurance collateral that expire in fiscal 2023 and reduce borrowing capacity under the revolving credit facility.

In addition to the above standby letters of credit, we are required, in the ordinary course of business, to provide surety or performance bonds that commit payments to our customers for any non-performance. At February 26, 2022, $352.5 million of our backlog was bonded by performance bonds with a face value of $1.2 billion. These bonds do not have stated expiration dates, as we are released from the bonds upon completion of the contract. We have not been required to make any payments under these bonds with respect to our existing businesses.

During calendar 2020, we took advantage of the option to defer remittance of the employer portion of Social Security tax as provided in the Coronavirus, Aid, Relief and Economic Security Act (CARES Act). This deferral allowed us to retain cash during calendar year 2020 that would have otherwise been remitted to the federal government. During the fourth quarter of fiscal 2022, we repaid half of the deferred tax payments in the amount of $6.8 million, with a remaining amount of $6.8 million included within accrued payroll and other benefits on our consolidated balance sheets to be repaid in calendar year 2022.

We had total cash and short-term marketable securities of $37.6 million, and $218.6 million available under our committed revolving credit facility, at February 26, 2022. We believe that cash flows from operating activities will be adequate to meet our short-term and long-term liquidity and capital expenditure needs. In addition, we believe we have the ability to obtain both short-term and long-term debt to meet our financing needs for the foreseeable future. We also believe we will continue to be in compliance with our existing debt covenants over the next fiscal year.

We continually review our portfolio of businesses and their assets and how they support our business strategy and performance objectives. As part of this review, we may acquire other businesses, pursue geographic expansion, take actions to manage capacity and further invest in, divest and/or sell parts of our current businesses.

We had no off-balance sheet arrangements at February 26, 2022 or February 27, 2021 that had or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Outlook

The Company is providing initial guidance for fiscal year 2023, with full year adjusted earnings expected to be in the range of $2.90 to $3.30 per diluted share. The Company expects revenue growth in fiscal 2023, led by the flow through of inflation-related pricing actions in Architectural Framing Systems. The Company forecasts full year capital expenditures of $35 to $40 million.

Recently Issued Accounting Pronouncements

See Note 1 of the Notes to Consolidated Financial Statements within Item 8 of this Form 10-K for information pertaining to recently issued accounting pronouncements, incorporated herein by reference.

Critical Accounting Policies and Estimates

Our analysis of operations and financial condition is based on our consolidated financial statements prepared in accordance with U.S. GAAP. Preparation of these consolidated financial statements requires us to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the consolidated financial statements, reported amounts of revenues and expenses during the reporting period and related disclosures of contingent assets and liabilities. In developing these estimates and assumptions, a collaborative effort is undertaken involving management across the organization, including finance, sales, project management, quality, risk, legal and tax, as well as outside advisors, such as consultants, engineers, lawyers and actuaries. Our estimates are evaluated on an ongoing basis and are drawn from historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results could differ under other assumptions or circumstances.

We consider the following items in our consolidated financial statements to require significant estimation or judgment.

22

---

Table of Contents

Revenue recognition

We generate revenue from the design, engineering and fabrication of architectural glass, curtainwall, window, storefront and entrance systems, and from installing those products on commercial buildings. We also manufacture value-added glass and acrylic products. Due to the diverse nature of our operations and various types of contracts with customers, we have businesses that recognize revenue over time and businesses that recognize revenue at a point in time. We believe the most significant areas of estimation and judgment relate to over-time revenue recognition on longer-term contracts.

We have three businesses which operate under long-term, fixed-price contracts, representing approximately 38 percent of our total revenue in fiscal February 26, 2022. The contracts for these businesses have a single, bundled performance obligation, as these businesses generally provide interrelated products and services and integrate these products and services into a combined output specified by the customer. The customer obtains control of this combined output, generally integrated window systems or installed window and curtainwall systems, over time. We measure progress on these contracts following an input method, by comparing total costs incurred to-date to the total estimated costs for the contract, and record that proportion of the total contract price as revenue in the period. Contract costs include materials, labor and other direct costs related to contract performance. We believe this method of recognizing revenue is consistent with our progress in satisfying our contract obligations.

Due to the nature of the work required under these long-term contracts, the estimation of costs incurred and remaining to complete on a project is subject to many variables and requires significant judgment. It is common for these contracts to contain potential bonuses or penalties which are generally awarded or charged upon certain project milestones or cost or timing targets, and can be based on customer discretion. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on our assessments of anticipated performance and all information (historical, current and forecasted) that is reasonably available to us.

Long-term contracts are often modified to account for changes in contract specifications and requirements of work to be performed. We consider contract modifications to exist when the modification, generally through a change order, either creates new or changes existing enforceable rights and obligations, and we evaluate these types of modifications to determine whether they may be considered distinct performance obligations. In many cases, these contract modifications are for goods or services that are not distinct from the existing contract, due to the significant integration service provided in the context of the contract. Therefore, these modifications are generally accounted for as part of the existing contract. The effect of a contract modification on the transaction price and our measure of progress is recognized as an adjustment to revenue, generally on a cumulative catch-up basis.

Impairment of goodwill, indefinite-lived intangible assets and long-lived assets

Goodwill

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

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 segment management on a regular basis. During the third quarter of fiscal 2022, we combined certain reporting units to form two reporting units, 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 Wausau, EFCO and Sotawall reporting units were combined to form the Window and Wall Systems reporting unit, and our Linetec and Tubelite reporting units were combined to form the Storefront and Finishing Solutions reporting unit. With these organizational changes, Architectural Framing Systems segment management regularly reviews and evaluates the results of the Window and Wall Systems and Storefront and Finishing Solutions reporting units. Additionally, functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the Window and Wall Systems and Storefront and Finishing Solutions reporting units. The goodwill of the five individual pre-integration reporting units was aggregated to the respective combined reporting units. We evaluated goodwill on a qualitative basis prior to and subsequent to this change and concluded no adjustment to the carrying value of goodwill was necessary as a result of this change. The

23

---

Table of Contents

reporting units for our fiscal 2022 annual impairment test align with reporting segments, with the exception of our Architectural Framing Systems segment, which contains two reporting units, Window and Wall Systems and Storefront and Finishing Solutions, which represent $55.6 million and $37.6 million, of the goodwill balance at February 26, 2022, respectively.

For our fiscal 2022 annual impairment test, we elected to bypass the qualitative assessment process and to proceed directly to comparing the fair value of each of our reporting units to carrying value, including goodwill. If fair value exceeds the carrying value, goodwill impairment is not indicated. If the carrying amount of a reporting unit is higher than its estimated fair value, the excess is recognized as an impairment expense.

We estimate the fair value of a reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance. Assumptions about future revenues and future operating expenses, capital expenditures and changes in working capital are based on the annual operating plan and other business plans for each reporting unit. These plans take into consideration numerous factors, including historical experience, current and future operational plans, anticipated future economic conditions and growth expectations for the industries and end markets in which we participate. These projections are discounted using a weighted-average cost of capital, which considers the risk inherent in our projections of future cash flows. We determine the weighted-average cost of capital for this analysis by weighting the required returns on interest bearing debt and common equity capital in proportion to their estimated percentages in an expected capital structure, using published data where possible. We used discount rates that are commensurate with the risks and uncertainties inherent in the respective businesses and in the internally developed forecasts. The market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies.

Based on these analyses, estimated fair value exceeded carrying value at all of our reporting units. The discounted cash flow projections used in these analyses are 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 or our other reporting units and we could incur non-cash impairment expense that would negatively impact our net earnings.

Indefinite-lived intangible assets

We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We evaluate the reasonableness of the useful lives and test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. We bypassed a qualitative assessment and performed a quantitative impairment test to compare the fair value of each indefinite-lived intangible asset with its carrying value. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment expense is recognized in an amount equal to that excess. If an impairment expense 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 estimation of 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 the fair value analysis, we assumed a discount rate of 12.3 percent, a royalty rate of 1.5 percent, and a long-term growth rate of 3.0 percent. Based on our annual analysis, the fair value of each of our trade names and trademarks exceeded the carrying amount, however, based on the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, it was determined that the carrying value of the Sotawall trade name exceeded fair value by $12.7 million as it was determined to have an immaterial fair value as of fiscal 2022 year end. This amount was recognized as impairment expense in the fourth quarter ended February 26, 2022.

We continue to conclude that the useful lives of our remaining 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, further impairment could be indicated on these indefinite-lived intangible assets.

Long-lived assets

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

24

---

Table of Contents

$36.7 million in finite-lived intangible assets was recognized in the fourth quarter of fiscal year 2022 within the Architectural Framing Systems segment.

Reserves for disputes and claims regarding product liability, warranties and other project-related contingencies

We are subject to claims associated with our products and services, principally as a result of disputes with our customers involving the performance or aesthetics of our products, some of which may be covered under our warranty policies. We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products. We also 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, including those taken on with our acquisition of EFCO. The time period from when a claim is asserted to when it is resolved, either by negotiation, settlement or litigation, can be several years. While we maintain various types of product liability insurance, the insurance policies include significant self-retention of risk in the form of policy deductibles. In addition, certain claims could be determined to be uninsured. We also actively manage the risk of these exposures through contract negotiations and proactive project management.

We reserve estimated exposures on known claims, as well as on a portion of anticipated claims for product warranty and rework costs, based on similar historical product liability claims, as a ratio of sales. We also reserve for estimated exposures on other claims as they are known and reasonably estimable.

Income taxes

We are required to make judgments regarding the potential tax effects of various financial transactions and ongoing operations to estimate our obligation to taxing authorities. These tax obligations include income, real estate, franchise and sales/use taxes. Judgments related to income taxes require the recognition in our financial statements that a tax position is more-likely-than-not to be sustained on audit.

Judgment and estimation is required in developing the provision for income taxes and the reporting of tax-related assets and liabilities and, if necessary, any valuation allowances. The interpretation of tax laws can involve uncertainty, since tax authorities may interpret such laws differently. Actual income tax could vary from estimated amounts and may result in favorable or unfavorable impacts to net income, cash flows and tax-related assets and liabilities. In addition, the effective tax rate may be affected by other changes including the allocation of property, payroll and revenues between states.

We assess the deferred tax assets for recoverability taking into consideration historical and anticipated earnings levels; the reversal of other existing temporary differences; available net operating losses and tax carryforwards; and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and amount of, a valuation allowance against the deferred tax assets. As facts and circumstances change, adjustment to the valuation allowance may be required.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    

We are exposed to ongoing market risk related to changes in interest rates, foreign currency exchange rates and raw material pricing.

Interest Rate Risk

A rise in interest rates could negatively affect the fair value of our fixed income investments, while serving to provide greater long-term return potential on these investments. To manage our direct risk from changes in market interest rates, we actively monitor the interest-sensitive components of our balance sheet, primarily available-for-sale securities, fixed income securities and debt obligations, and maintain a diversified portfolio in order to minimize the impact of changes in interest rates on net earnings and cash flow. We do not hold any financial instruments for trading purposes. We also hedge a portion of the floating interest rate on our long-term line of credit through a floating-to-fixed interest rate swap.

The primary measure of interest rate risk is the simulation of net income under different interest rate environments. If interest rates were to increase or decrease over the next 12 months by 200 basis points, net earnings would be impacted by approximately $0.8 million. Our debt exceeded investments at February 26, 2022, so as interest rates increase, net earnings decrease; as interest rates decrease, net earnings increase.

In addition to the market risk related to interest rate changes on our financial instruments, the commercial construction markets in which our businesses operate are highly affected by changes in interest rates. Increases in interest rates could adversely impact activity in the commercial construction industry and our operating results.

25

---

Table of Contents

Foreign Currency Exchange Rate Risk

We are subject to market risk due to changes in the value of foreign currencies in relation to our reporting currency, the U.S. dollar.

We have operations in Canada and Brazil, which primarily transact business in local currencies. We manage these operating activities locally. Revenues, costs, assets and liabilities of these operations are generally denominated in local currencies, thereby mitigating some of the risk associated with changes in foreign exchange rates. However, our consolidated financial results are reported in U.S. dollars. Thus, changes in exchange rates between the Canadian dollar and Brazilian real, versus the U.S. dollar, will impact our reported financial results. From time to time, we enter into forward purchase foreign currency contracts, generally with an original maturity date of less than one year, to hedge foreign currency risk (refer to additional discussion within Note 4 of the Notes to Consolidated Financial Statements). Sales from our domestic operations are generally denominated in U.S. dollars.

Raw Material Pricing Risk

We are subject to market risk exposure related to volatility in the prices of aluminum and lumber, among other raw materials and supplies used in our end products. A significant amount of our cost of sales relates to materials costs. The commodities markets, which include the aluminum industry, are highly cyclical in nature. As a result, commodity costs can be volatile, as we have experienced from time to time during recent fiscal quarters, and may become more volatile in the future. Commodity costs are influenced by numerous factors beyond our control, including general economic conditions, the availability of raw materials, competition, labor costs, freight and transportation costs, production costs, import duties and other trade restrictions.

We principally manage our exposures to the market fluctuations in the aluminum industry through fixed/floating rate swaps and forward purchase agreements. Although we have the ability to purchase aluminum from a number of suppliers, a production cutback by one or more of our current suppliers could create challenges in meeting delivery schedules to our customers. The prices we offer to our customers are also impacted by changes in commodity costs. We manage the alignment of the cost of our raw materials and the prices offered to customers, and attempt to pass changes to raw material costs through to our customers. To improve our management of commodity costs, we attempt to maintain inventory levels not in excess of our production requirements.

We cannot accurately calculate the pre-tax impact a one percent change in the commodity costs of aluminum and/or lumber would have on our fiscal 2023 operating results, as the change in commodity costs would both impact the cost to purchase materials and the selling prices we offer our customers. The impact to our operating results would significantly depend on the competitive environment and the costs of other alternative products, which could impact our ability to pass commodities costs to our customers.

26

---

Table of Contents

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Management's Annual Report on Internal Control over Financial Reporting

Management of Apogee Enterprises, Inc. and its subsidiaries (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) of the Securities Exchange Act of 1934. The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company's internal control over financial reporting includes those policies and procedures that (1) pertain to maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of February 26, 2022, using criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). The Company's management believes that, as of February 26, 2022, the Company's internal control over financial reporting was effective based on those criteria.

Following this report are reports from the Company's independent registered public accounting firm, Deloitte & Touche LLP, on the Company's consolidated financial statements and on the effectiveness of the Company's internal control over financial reporting as of February 26, 2022.

27

---

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

Apogee Enterprises, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Apogee Enterprises, Inc. and subsidiaries (the "Company") as of February 26, 2022 and February 27, 2021, and the related consolidated results of operations, statements of comprehensive earnings, cash flows, and shareholders' equity, for each of the three years in the period ended February 26, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of February 26, 2022 and February 27, 2021, and the results of its operations and its cash flows for each of the three years in the period ended February 26, 2022, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of February 26, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated April 22, 2022 expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Net Sales — Revenue Recognition for Long-Term Contracts in the Architectural Services Segment — Refer to Notes 1, 2, and 15 to the consolidated financial statements

The Architectural Services segment, which provides building glass and curtainwall installation services and operates under long-term, fixed-price contracts, accounted for approximately $349.4 million, or 27 percent of total net sales for the year ended February 26, 2022. The contracts for this business typically have a single, bundled performance obligation, as the business generally provides interrelated services and integrates these services into a combined output specified by the customer. The customer obtains control of this combined output, generally installed window and curtainwall systems, over time. The Company measures progress on these contracts following an input method, by comparing total costs incurred to-date to the total estimated costs for the contract and recording that proportion of the total contract price as revenue.

Given the judgments necessary to estimate total costs and profit for the contract performance obligations used to recognize revenue for long-term, fixed-price contracts in the Architectural Services segment, auditing such estimates required extensive audit effort due to the complexity of long-term contracts and a high degree of auditor judgment when performing audit procedures and evaluating the results of those procedures.

28

---

Table of Contents

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to management’s estimates of total costs and profit for the contract performance obligations used to recognize revenue for certain long-term contracts in the Architectural Services segment included, but were not limited to the following:

•We tested the effectiveness of controls over long-term contract revenue in the Architectural Services segment, including those over the estimates of total costs and profit for performance obligations.

•We developed an expectation of the amount of total long-term contract revenue in the Architectural Services segment based on prior year margins applied to cost of sales in the current year and compared our expectation to the amount of long-term contract revenue ultimately recorded by management.

•We evaluated management’s ability to estimate total costs and profit by comparing actual costs and profit to management’s historical estimates for performance obligations that have been fulfilled.

•We selected a sample of long-term contracts from the Architectural Services segment contract portfolio and performed the following procedures:

•Evaluated whether the long-term contracts were properly included in management’s calculation of long-term contract revenue based on the terms and conditions of each contract, including whether continuous transfer of control to the customer occurred as progress was made toward fulfillment of the performance obligations.

•Compared the transaction prices to the consideration expected to be received based on current rights and obligations under the long-term contracts and any modifications that were agreed upon with the customers.

•Tested management’s identification of distinct performance obligations by evaluating whether the underlying services are highly interdependent and interrelated.

•Tested the accuracy and completeness of the costs incurred to date for the performance obligations.

•We tested the mathematical accuracy of management’s calculation of long-term contract revenue for the performance obligation.

•Evaluated the estimates of total cost and profit for the performance obligations by:

•Comparing costs incurred to date to the costs management estimated to be incurred to date.

•Evaluating management’s ability to achieve the estimates of total cost and profit by performing corroborating inquiries with the Company’s project managers and engineers, and comparing the estimates to management’s work plans, engineering specifications, and supplier contracts.

•Comparing management’s estimates for the selected contracts to costs and profit of similar performance obligations, when applicable.

Goodwill — Window and Wall Systems Reporting Unit — Refer to Notes 1 and 6 to the consolidated financial statements

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Company estimates the fair value of its reporting units using both the income approach and the market approach. The income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance, including future revenues, future operating expenses, and discount rates. Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, or both. The Company’s goodwill balance was $130 million as of February 26, 2022, of which $55.6 million relates to the Window and Wall Systems reporting unit. The fair value of the Window and Wall Systems reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was identified.

Given the significant judgments made by management to estimate the fair value of the Window and Wall Systems reporting unit, performing audit procedures to evaluate the reasonableness of management's estimates and assumptions related to selection of future revenues, future operating expenses, and discount rates required a high degree of auditor judgment and an increased extent of effort.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to future revenues, future operating expenses, and discount rates used by management to estimate the fair value of the Window and Wall Systems reporting unit included the following, among others:

•We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over the determination of the fair value of the reporting units, such as controls related to management's selection of future revenues, future operating expenses, and discount rates.

•With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate, including testing the source information underlying the determination of the discount rate, testing the mathematical accuracy of the calculation, and developing a range of independent estimates and comparing those to the discount rate selected by management.

•We evaluated the reasonableness of management’s forecasts by comparing the forecasts to (1) historical results, (2) internal communications to management and the Board of Directors, (3) industry information, and (4) forecasted information

29

---

Table of Contents

included in Company press releases as well as in analyst and industry reports of the Company.

•We evaluated management’s ability to accurately forecast future revenue and future operating expenses by comparing actual results to management’s historical forecasts.

•We evaluated the allocation of the Company’s estimated fair value to its reporting units and the comparison of the Company’s estimated fair value to its market capitalization.

/s/ Deloitte & Touche LLP

Minneapolis, MN  

April 22, 2022

We have served as the Company's auditor since 2003.

30

---

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

Apogee Enterprises, Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Apogee Enterprises, Inc. and subsidiaries (the “Company”) as of February 26, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of February 26, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended February 26, 2022, of the Company and our report dated April 22, 2022 expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Minneapolis, MN

April 22, 2022

31

---

Table of Contents

CONSOLIDATED BALANCE SHEETS

 

(In thousands, except per share data)						February 26, 2022						February 27, 2021
Assets
Current assets
Cash and cash equivalents						$	37,583					$	47,277
Receivables, net of allowance for doubtful accounts						168,592						175,917
Inventories						80,494						72,823
Costs and earnings on contracts in excess of billings						30,403						29,497
Other current assets						20,820						25,160
Total current assets						337,892						350,674
Property, plant and equipment, net						249,995						298,443
Operating lease right-of-use assets						47,912						58,864
Goodwill						130,102						130,098
Intangible assets						72,481						130,053
Other non-current assets						49,481						46,967
Total assets						$	887,863					$	1,015,099
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable						$	92,104					$	76,204
Accrued payroll and related benefits						50,977						50,125
Billings in excess of costs and earnings on uncompleted contracts						8,659						22,789
Operating lease liabilities						12,744						13,251
Current portion long-term debt						1,000						2,000
Other current liabilities						67,462						53,183
Total current liabilities						232,946						217,552
Long-term debt						162,000						163,000
Non-current operating lease liabilities						39,591						48,439
Non-current self-insurance reserves						22,544						24,880
Other non-current liabilities						44,583						68,483
Commitments and contingent liabilities (Note 10)
Shareholders’ equity
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 23,701,491 and 25,713,688 shares, respectively						7,901						8,571
Additional paid-in capital						149,713						154,958
Retained earnings						254,825						357,243
Accumulated other comprehensive loss						(26,240)						(28,027)
Total shareholders’ equity						386,199						492,745
Total liabilities and shareholders’ equity						$	887,863					$	1,015,099

See accompanying notes to consolidated financial statements.

32

---

Table of Contents

CONSOLIDATED RESULTS OF OPERATIONS

 

						Year-Ended
(In thousands, except per share data)						February 26, 2022						February 27, 2021						February 29, 2020
Net sales						$	1,313,977					$	1,230,774					$	1,387,439
Cost of sales						1,039,816						955,084						1,068,480
Gross profit						274,161						275,690						318,959
Selling, general and administrative expenses						202,643						180,094						231,111
Impairment expense on goodwill and intangible assets						49,473						70,069						—
Operating income						22,045						25,527						87,848
Interest expense, net						3,767						4,408						8,814
Other (expense) income, net						(4,409)						1,492						716
Earnings before income taxes						13,869						22,611						79,750
Income tax expense						10,383						7,175						17,836
Net earnings						$	3,486					$	15,436					$	61,914
Earnings per share - basic						$	0.14					$	0.59					$	2.34
Earnings per share - diluted						$	0.14					$	0.59					$	2.32
Weighted average basic shares outstanding						24,920						25,955						26,474
Weighted average diluted shares outstanding						25,292						26,304						26,729

See accompanying notes to consolidated financial statements.

33

---

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

 

						Year-Ended
(In thousands)						February 26, 2022						February 27, 2021						February 29, 2020
Net earnings						$	3,486					$	15,436					$	61,914
Other comprehensive earnings (loss):
Unrealized (loss) gain on marketable securities, net of $(96), $22 and $67 of tax (benefit) expense, respectively						(360)						80						257
Unrealized gain (loss) on foreign currency hedge, net of $633, $450 and $(129) of tax expense (benefit), respectively						2,074						1,475						(423)
Unrealized gain (loss) on pension obligation, net of $117, $32 and $(124) of tax expense (benefit), respectively						382						105						(405)
Foreign currency translation adjustments						(309)						4,375						(1,364)
Other comprehensive earnings (loss)						1,787						6,035						(1,935)
Total comprehensive earnings						$	5,273					$	21,471					$	59,979

See accompanying notes to consolidated financial statements.

34

---

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS

						Year-Ended
(In thousands)						February 26, 2022						February 27, 2021						February 29, 2020
Operating Activities
Net earnings						$	3,486					$	15,436					$	61,914
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization						49,993						51,440						46,795
Share-based compensation						6,293						8,573						6,607
Deferred income taxes						(7,956)						(6,460)						10,463
Asset impairment on property, plant and equipment						21,497						1,400						—
Gain on disposal of assets						(20,987)						(20,044)						(2,197)
Impairment expense on goodwill and intangible assets						49,473						70,069						—
Noncash lease expense						12,418						12,235						12,420
Other, net						(1,272)						(2,088)						(1,516)
Changes in operating assets and liabilities:
Receivables						7,521						21,630						(4,217)
Inventories						(7,706)						(1,440)						7,142
Costs and earnings on contracts in excess of billings						(897)						44,183						(18,468)
Accounts payable and accrued expenses						3,348						(32,591)						(375)
Billings in excess of costs and earnings on uncompleted contracts						(14,288)						(10,351)						11,314
Refundable and accrued income taxes						11,017						2,652						(8,726)
Operating lease liability						(12,720)						(11,513)						(10,829)
Other, net						1,251						(1,268)						(3,065)
Net cash provided by operating activities						100,471						141,863						107,262
Investing Activities
Capital expenditures						(21,841)						(26,165)						(51,428)
Proceeds from sales of property, plant and equipment						30,599						25,108						5,307
Purchases of marketable securities						(1,038)						(3,606)						(7,012)
Sales/maturities of marketable securities						1,563						2,657						7,768
Other, net						—						(141)						(1,673)
Net cash provided (used) by investing activities						9,283						(2,147)						(47,038)
Financing Activities
Borrowings on line of credit						—						198,601						229,000
(Repayment) borrowings on debt						(2,000)						(5,400)						150,000
Payments on line of credit						—						(246,340)						(406,500)
Proceeds from exercise of stock options						4,115						1,456						—
Repurchase and retirement of common stock						(100,414)						(32,878)						(25,140)
Dividends paid						(20,266)						(19,601)						(18,714)
Other, net						(2,007)						(3,714)						(3,160)
Net cash used by financing activities						(120,572)						(107,876)						(74,514)
(Decrease) increase in cash, cash equivalents and restricted cash						(10,818)						31,840						(14,290)
Effect of exchange rates on cash						1,124						485						1
Cash, cash equivalents and restricted cash at beginning of year						47,277						14,952						29,241
Cash, cash equivalents and restricted cash at end of year						$	37,583					$	47,277					$	14,952
Noncash Activity
Capital expenditures in accounts payable						$	2,326					$	1,101					$	2,169

See accompanying notes to consolidated financial statements.

35

---

Table of Contents

Consolidated Statements of Shareholders' Equity

(In thousands, except per share data)						Common Shares Outstanding						Common Stock						Additional Paid-In Capital						Retained Earnings						Common Stock Held in Trust						Deferred Compensation Obligation						Accumulated Other Comprehensive (Loss) Income						Total Shareholders' Equity
Balance at March 2, 2019						27,015						$	9,005					$	151,842					$	367,597					$	(755)					$	755					$	(32,127)					$	496,317
Net earnings						—						—						—						61,914						—						—						—						61,914
Unrealized gain on marketable securities, net of $67 tax expense						—						—						—						—						—						—						257						257
Unrealized loss on foreign currency hedge, net of $129 tax benefit						—						—						—						—						—						—						(423)						(423)
Unrealized loss on pension obligation, net of $124 tax benefit						—						—						—						—						—						—						(405)						(405)
Foreign currency translation adjustments						—						—						—						—						—						—						(1,364)						(1,364)
Issuance of stock, net of cancellations						174						57						(124)						225						70						(70)						—						158
Share-based compensation						—						—						6,607						—						—						—						—						6,607
Share repurchases						(687)						(229)						(3,963)						(20,948)						—						—						—						(25,140)
Other share retirements						(59)						(19)						(346)						(2,064)						—						—						—						(2,429)
Cash dividends ($0.7125 per share)						—						—						—						(18,714)						—						—						—						(18,714)
Balance at February 29, 2020						26,443						$	8,814					$	154,016					$	388,010					$	(685)					$	685					$	(34,062)					$	516,778
Net earnings						—						—						—						15,436						—						—						—						15,436
Unrealized gain on marketable securities, net of $22 tax expense						—						—						—						—						—						—						80						80
Unrealized gain on foreign currency hedge, net of $450 tax expense						—						—						—						—						—						—						1,475						1,475
Unrealized gain on pension obligation, net of $32 tax expense						—						—						—						—						—						—						105						105
Foreign currency translation adjustments						—						—						—						—						—						—						4,375						4,375
Issuance of stock, net of cancellations						432						145						(1,212)						1,174						499						(499)						—						107
Share-based compensation						—						—						8,573						—						—						—						—						8,573
Exercise of stock options						127						42						1,414						—						—						—						—						1,456
Share repurchases						(1,177)						(393)						(7,144)						(25,341)						—						—						—						(32,878)
Other share retirements						(111)						(37)						(689)						(2,435)						—						—						—						(3,161)
Cash dividends ($0.7625 per share)						—						—						—						(19,601)						—						—						—						(19,601)
Balance at February 27, 2021						25,714						$	8,571					$	154,958					$	357,243					$	(186)					$	186					$	(28,027)					$	492,745
Net earnings						—						—						—						3,486						—						—						—						3,486
Unrealized loss on marketable securities, net of $96 tax benefit						—						—						—						—						—						—						(360)						(360)
Unrealized gain on foreign currency hedge, net of $633 tax expense						—						—						—						—						—						—						2,074						2,074
Unrealized gain on pension obligation, net of $117 tax expense						—						—						—						—						—						—						382						382
Foreign currency translation adjustments						—						—						—						—						—						—						(309)						(309)
Issuance of stock, net of cancellations						172						57						(190)						221						(12)						12						—						88
Share-based compensation						—						—						6,293						—						—						—						—						6,293
Exercise of stock options						179						60						4,055						—						—						—						—						4,115
Share repurchases						(2,309)						(769)						(15,055)						(84,590)						—						—						—						(100,414)
Other share retirements						(55)						(18)						(348)						(1,269)						—						—						—						(1,635)
Cash dividends ($0.8200 per share)						—						—						—						(20,266)						—						—						—						(20,266)
Balance at February 26, 2022						23,701						$	7,901					$	149,713					$	254,825					$	(198)					$	198					$	(26,240)					$	386,199

See accompanying notes to consolidated financial statements.

36

---

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

1.Summary of Significant Accounting Policies and Related Data

Basis of consolidation

The consolidated financial statements include the balances of Apogee Enterprises, Inc. and its subsidiaries (Apogee, we, us, our or the Company) after elimination of intercompany balances and transactions. We consolidate variable interest entities related to our New Market Tax Credit transactions as it has been determined that the Company is the primary beneficiary of those entities' operations (refer to Note 10 for more information).

Fiscal year

Our fiscal year ends on the Saturday closest to the last day of February, or as determined by the Board of Directors. Fiscal 2022, 2021 and 2020 each consisted of 52 weeks.

Accounting estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates.

Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of cash flows to conform to current year presentation.

Cash equivalents

Highly liquid investments with an original maturity of three months or less are included in cash equivalents and are stated at cost, which approximates fair value.

Marketable securities

To the extent the amortized cost basis of the available-for-sale securities exceeds the fair value, the Company assesses the debt securities for credit loss. When assessing the risk of credit loss, the Company considers factors such as the severity and the reason of the decline in value, such as any changes to the rating of the security by a rating agency or other adverse conditions specifically related to the security, and management's intended holding period and time horizon for selling. During fiscal 2022, 2021, and 2020, the Company did not recognize any credit losses related to its available-for-sale securities. Further, as of February 26, 2022 and February 27, 2021, the Company did not record an allowance for credit losses related to its available-for-sale securities. Marketable securities are included in other current and non-current assets on the consolidated balance sheets and gross realized gains and losses are included in other income (expense), net in our consolidated results of operations.

Inventories

Inventories, which consist primarily of purchased glass and aluminum, are valued at lower of cost or market using the first-in, first-out (FIFO) method.

Property, plant and equipment

Property, plant and equipment (PP&E) is recorded at cost. Significant improvements and renewals that extend the useful life of the asset are capitalized. Repairs and maintenance are charged to expense as incurred. When an asset is retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in selling, general and administrative expenses. Long-lived assets to be held and used, such as PP&E, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Depreciation is computed on a straight-line basis, based on estimated useful lives of 10 to 25 years for buildings and improvements; 3 to 10 years for machinery and equipment; and 3 to 7 years for office equipment and furniture.

Impairment of long-lived assets

Long-lived assets or asset groups, including finite-lived intangible assets ("intangible assets") subject to amortization and property and equipment, are reviewed for impairment whenever events or changes in circumstances such as asset utilization, physical change, legal factors or other matters indicate that the carrying value of those assets may not be recoverable. When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, an asset impairment expense is recognized in earnings in the period such a determination is made. The amount of the impairment expense recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value based on discounted cash flows.

37

---

Table of Contents

During the third quarter of fiscal 2022, an impairment of $3.0 million was recognized within other (expense) income within the consolidated results of operations related to a minority equity investment held by the Company which represents a write-down of the entire investment in the company.

During the fourth quarter of fiscal 2022, based on the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, we determined that the finite-lived intangible assets were impaired as of February 26, 2022. As such, a long-lived asset impairment charge of $36.7 million in finite-lived intangible assets was recognized in the fourth quarter of fiscal year 2022 within the Architectural Framing Systems segment. As a result of restructuring plans announced during the second quarter of fiscal 2022, asset impairments on property plant and equipment and leases in the amount of $21.5 million were recorded for the year ended February 26, 2022.

Goodwill and intangible assets

Goodwill

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

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 segment management on a regular basis. During the third quarter of fiscal 2022, we combined certain reporting units to form two reporting units, 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 Wausau, EFCO and Sotawall reporting units were combined to form the Window and Wall Systems reporting unit, and our Linetec and Tubelite reporting units were combined to form the Storefront and Finishing Solutions reporting unit. With these organizational changes, Architectural Framing Systems segment management regularly reviews and evaluates the results of the Window and Wall Systems and Storefront and Finishing Solutions reporting units. Additionally, functional leaders in areas such as operations, sales, marketing and general and administrative areas are responsible for allocating resources and reviewing results of the Window and Wall Systems and Storefront and Finishing Solutions reporting units. The goodwill of the five individual pre-integration reporting units was aggregated to the respective combined reporting units. We evaluated goodwill on a qualitative basis prior to and subsequent to this change and concluded no adjustment to the carrying value of goodwill was necessary as a result of this change. With the above noted changes, our reporting units for our fiscal 2022 annual impairment test were determined to be Window and Wall Systems, Storefront and Finishing Solutions, Viracon, Harmon and Tru Vue.

We estimate the fair value of a reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow methodology that involves significant judgment and projections of future performance. Assumptions about future revenues and future operating expenses, capital expenditures and changes in working capital are based on the annual operating plan and other business plans for each reporting unit. These plans take into consideration numerous factors, including historical experience, current and future operational plans, anticipated future economic conditions and growth expectations for the industries and end markets in which we participate. These projections are discounted using a weighted-average cost of capital, which considers the risk inherent in our projections of future cash flows. We determine the weighted-average cost of capital for this analysis by weighting the required returns on interest bearing debt and common equity capital in proportion to their estimated percentages in an expected capital structure, using published data where possible. We used discount rates that are commensurate with the risks and uncertainties inherent in the respective businesses and in the internally developed forecasts. The market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies.

Intangible assets

We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. If the carrying amount of an indefinite-lived intangible asset exceeds its fair value, an impairment expense is recognized in an amount equal to that excess. If an impairment expense is recognized, the adjusted carrying amount becomes the asset's new accounting basis.

38

---

Table of Contents

Fair value of indefinite-lived intangible assets 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 estimation of 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.

Finite-lived intangible assets are amortized based on estimated useful lives ranging from 18 months to 30 years and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

The estimated useful lives of all intangible assets are reviewed annually, and we have determined that the remaining lives were appropriate.

Leases

On March 3, 2019, we adopted ASU 2016-02, Leases, which results in recognizing a right-of-use asset and lease liability on our consolidated balance sheet at lease commencement for leases with terms greater than twelve months. The initial lease liability is recognized at the present value of remaining lease payments over the lease term. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheet. We recognize lease expense for operating leases on a straight-line basis over the lease term. We combine lease and non-lease components, such as common area maintenance costs, in calculating the related asset and lease liabilities for all underlying asset groups. Refer to additional information in Note 8.

Self-Insurance

We obtain commercial insurance to provide coverage for potential losses in areas such as employment practices, workers' compensation, directors and officers, automobile, architect's and engineer's errors and omissions, product rework and general liability. A substantial portion of this risk is retained on a self-insured basis through our wholly-owned insurance subsidiary. We establish a reserve for estimated ultimate losses on reported claims and those incurred but not yet reported utilizing actuarial projections. Reserves are classified within other current liabilities or non-current self-insurance reserves based on expectations of when the estimated loss will be paid.

Additionally, we maintain a self-insurance reserve for health insurance programs offered to eligible employees, included within other current liabilities on the consolidated balance sheets. The reserve includes an estimate for losses on reported claims as well as for amounts incurred but not yet reported, based on historical trends.

Warranty and project-related contingencies

We are subject to claims associated with our products and services, principally as a result of disputes with our customers involving the performance or aesthetics of our architectural products and services. We reserve estimated exposures on known claims, as well as on a portion of anticipated claims for product warranty and rework costs, based on historical product liability claims as a ratio of sales. We also reserve for estimated exposures on other claims as they are known and reasonably estimable. Reserves are included in other current and non-current liabilities based on the estimated timing of dispute resolution.

Foreign currency

Local currencies are considered the functional currencies for our subsidiaries outside of the United States. Assets and liabilities of these subsidiaries are translated at the exchange rates at the balance sheet date. Income and expense items are translated using average monthly exchange rates. Translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheets.

Derivatives and hedging activities

We are exposed to, among other risks, the impact of changes in aluminum prices, foreign currency exchange rates, and interest rates in the normal course of business. In order to manage the exposure and volatility arising from these risks, we utilize derivative financial instruments to offset a portion of these risks. We use derivative financial instruments only to the extent necessary to hedge identified business risks, and do not hold or issue derivative financial instruments for trading purposes and are not a party to leveraged derivatives.

All derivative instruments within the scope of ASC 815, Derivatives and Hedging, are recorded as either assets or liabilities at fair value on the consolidated balance sheets. All hedging instruments that qualify for hedge accounting are designated and effective as hedges with changes recognized in other comprehensive earnings (loss). Instruments that do not qualify for hedge accounting are marked to market with changes recognized in current earnings. Cash flows from derivative instruments are classified in the statements of cash flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. Please refer to Note 4 for further disclosure on derivatives.

39

---

Table of Contents

Revenue recognition

Our significant accounting policy for revenue recognition follows ASC 606, Revenue from Contracts with Customers. We generate revenue from the design, engineering and fabrication of architectural glass, curtainwall, window, storefront and entrance systems, and from installing those products on commercial buildings. We also manufacture value-added glass and acrylic products. Due to the diverse nature of our operations and various types of contracts with customers, we have businesses that recognize revenue over time and businesses that recognize revenue at a point in time.

During fiscal 2022, approximately 42 percent of our total revenue is recognized at the time products are shipped from our manufacturing facilities, which is when control is transferred to our customer, consistent with past practices. These businesses do not generate contract-related assets or liabilities. Variable consideration associated with these contracts and orders, generally related to early pay discounts or volume rebates, is not considered significant.

We also have three businesses which operate under long-term, fixed-price contracts, representing approximately 38 percent of our total revenue in the current year. The contracts for these businesses have a single, bundled performance obligation, as these businesses generally provide interrelated products and services and integrate these products and services into a combined output specified by the customer. The customer obtains control of this combined output, generally integrated window systems or installed window and curtainwall systems, over time. We measure progress on these contracts following an input method, by comparing total costs incurred to-date to the total estimated costs for the contract, and record that proportion of the total contract price as revenue in the period. Contract costs include materials, labor and other direct costs related to contract performance. We believe this method of recognizing revenue is consistent with our progress in satisfying our contract obligations.

Due to the nature of the work required under these long-term contracts, the estimation of total revenue and costs incurred throughout a project is subject to many variables and requires significant judgment. It is common for these contracts to contain potential bonuses or penalties which are generally awarded or charged upon certain project milestones or cost or timing targets, and these can be based on customer discretion. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on our assessments of anticipated performance and all information (historical, current and forecasted) that is reasonably available to us.

Long-term contracts are often modified to account for changes in contract specifications and requirements of work to be performed. We consider contract modifications to exist when the modification, generally through a change order, either creates new or changes existing enforceable rights and obligations, and we evaluate these types of modifications to determine whether they may be considered distinct performance obligations. In most cases, these contract modifications are for goods or services that are not distinct from the existing contract, due to the significant integration service provided in the context of the contract. Therefore, these modifications are accounted for as part of the existing contract. The effect of a contract modification on the transaction price and our measure of progress is recognized as an adjustment to revenue, generally on a cumulative catch-up basis.

Typically, under these fixed-price contracts, we bill our customers following an agreed-upon schedule based on work performed. Because the progress billings do not generally correspond to our measurement of revenue on a contract, we generate contract assets when we have recognized revenue in excess of the amount billed to the customer. We generate contract liabilities when we have billed the customer in excess of revenue recognized on a contract.

Finally, we have one business, making up approximately 20 percent of our total revenue in the current year, that recognizes revenue following an over-time output method based upon units produced. The customer is considered to have control over the products at the time of production, as the products are highly customized with no alternative use, and we have an enforceable right to payment for performance completed over the production period. We believe this over-time output method of recognizing revenue reasonably depicts the fulfillment of our performance obligations under our contracts. Billings still occur upon shipment. Therefore, contract assets are generated for the unbilled amounts on contracts when production is complete. Variable consideration associated with these orders, generally related to early pay discounts, is not considered significant.

Additionally, we have made the following policy elections associated with revenue recognition:

•We account for shipping and handling activities that occur after control of the related goods transfers to the customer as fulfillment activities, instead of assessing such activities as performance obligations.

40

---

Table of Contents

•We exclude from the transaction price all sales taxes related to revenue-producing transactions that are collected from the customer for a government authority. We are considered a pass-through conduit for collecting and remitting sales taxes.

•We generally expense incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. These costs primarily relate to sales commissions and are included in selling, general and administrative expenses.

•We do not adjust contract price for a significant financing component, as we expect the period between when our goods and services are transferred to the customer and when the customer pays for those goods and services to be less than a year.

Shipping and handling

Amounts billed to a customer in a sales transaction related to shipping and handling are reported as revenue. Costs we incur for shipping and handling are reported as cost of sales.

Restructuring

During the second quarter of fiscal 2022, we announced plans to realign and simplify our business structure which resulted in the closure of two facilities within the Architectural Glass segment, in Dallas, Texas and Statesboro, Georgia. These closures were made in order to concentrate this segment on premium, high-performance products. Additionally, employee termination costs were incurred related to these facility closures, realignment of the Architectural Framing Systems segment, and within the Corporate office. The actions associated with this announced plan continued through fiscal 2022 and are expected be substantially completed in the first quarter of fiscal 2023. Refer to additional information in Note 16.

Research and development

Research and development costs are expensed as incurred and were $17.3 million, $15.3 million and $16.6 million for fiscal 2022, 2021 and 2020, respectively. Of these amounts, $9.5 million, $9.9 million and $8.0 million, respectively, were focused primarily upon design of custom window and curtainwall systems in accordance with customer specifications and are included in cost of sales. The remainder of the expense is included within selling, general and administrative expenses.

Advertising

Advertising costs are expensed as incurred within selling, general and administrative expenses, and were $1.2 million in fiscal 2022, $1.1 million in fiscal 2021 and $1.4 million in fiscal 2020.

Income taxes

The Company recognizes deferred tax assets and liabilities based upon the future tax consequences of temporary differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. See Note 13 for additional information regarding income taxes.

Subsequent events

We have evaluated subsequent events for potential recognition and disclosure through the date of this filing. Subsequent to the end of the year, we purchased 1,571,139 shares of stock under our authorized share repurchase program, at a total cost of $74.3 million.

Starting in the first quarter of fiscal 2023, based on the Company's planned integration of Sotawall into the Architectural Services segment, the Company expects that the results of the Sotawall business will be reported as part of the Architectural Services segment.

Adoption of new accounting standards

At the beginning of fiscal 2022, we adopted the guidance in ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this ASU removed exceptions on intra-period tax allocations and reporting and provided simplification on accounting for franchise taxes, tax basis goodwill and tax law changes. The adoption of this ASU did not have a significant impact on the consolidated financial statements.

At the beginning of fiscal 2022, we adopted the guidance in ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The adoption of this ASU did not have a significant impact on the consolidated financial statements.

41

---

Table of Contents

2.Revenue, Receivables and Contract Assets and Liabilities

Revenue

The following table disaggregates total revenue by timing of recognition (see Note 15 for disclosure of revenue by segment):

(In thousands)						February 26, 2022						February 27, 2021						February 29, 2020
Recognized at shipment						$	551,252					$	504,583					$	610,049
Recognized over time						762,725						726,191						777,390
Total						$	1,313,977					$	1,230,774					$	1,387,439

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)						2022						2021
Trade accounts						$	129,085					$	120,534
Construction contracts						12,857						12,163
Contract retainage						28,782						45,167
Total receivables						170,724						177,864
Less: allowance for credit losses						2,132						1,947
Receivables, net						$	168,592					$	175,917

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

(In thousands)						2022						2021
Beginning balance						$	1,947					$	2,469
Additions charged to costs and expenses						729						389
Deductions from allowance, net of recoveries						(514)						(887)
Other deductions						(30)						(24)
Ending balance						$	2,132					$	1,947

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)						February 26, 2022						February 27, 2021
Contract assets						$	59,185					$	74,664
Contract liabilities						11,373						25,000

The change in contract assets and contract liabilities was due to timing of project activity from businesses that operate under long-term contracts.

42

---

Table of Contents

Other contract-related disclosures

(In thousands)																		February 26, 2022						February 27, 2021
Revenue recognized related to contract liabilities from prior year-end																		$	19,747					$	16,341
Revenue recognized related to prior satisfaction of performance obligations																		22,461						19,705

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 February 26, 2022, the transaction price associated with unsatisfied performance obligations was approximately $789.8 million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:

(In thousands)						February 26, 2022
Within one year						$	518,213
Within two years						213,531
Beyond two years						58,080
Total						$	789,824

3.Supplemental Balance Sheet Information

Inventories

(In thousands)						2022						2021
Raw materials						$	42,541					$	36,681
Work-in-process						18,144						18,932
Finished goods						19,809						17,210
Total inventories						$	80,494					$	72,823

Other current liabilities

(In thousands)						2022						2021
Warranties						$	11,786					$	12,298
Accrued project losses						93						4,572
Income and other taxes						15,770						7,459
Accrued self-insurance reserves						8,796						6,482
Accrued freight						2,078						1,477
Other						28,939						20,895
Total other current liabilities						$	67,462					$	53,183

Other non-current liabilities

(In thousands)						2022						2021
Deferred benefit from New Markets Tax Credit transactions						$	9,165					$	15,717
Retirement plan obligations						7,041						7,730
Deferred compensation plan						9,483						13,507
Deferred tax liabilities						2,296						8,310
Deferred payroll taxes						—						6,789
Other						16,598						16,430
Total other non-current liabilities						$	44,583					$	68,483

43

---

Table of Contents

4.Financial Instruments

Marketable Securities

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

(In thousands)						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
February 26, 2022						$	11,862					$	45					$	123					$	11,784
February 27, 2021						12,517						386						10						12,893

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 our municipal and corporate bonds at February 26, 2022, 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. Gross realized gains and losses were insignificant for all periods presented.

(In thousands)						Amortized Cost						Estimated Fair Value
Due within one year						$	1,206					$	1,212
Due after one year through five years						9,158						9,109
Due after five years through 10 years						698						669
Due beyond 15 years						800						794
Total						$	11,862					$	11,784

Derivative instruments

We use interest rate swaps, currency swaps, and forward purchase contracts to manage risks generally associated with foreign exchange rate, interest rate and commodity price fluctuations. The information that follows explains the various types of derivatives and financial instruments we use, how such instruments are accounted for, and how such instruments impact our financial position and performance.

In fiscal 2020, we entered into an interest rate swap to hedge a portion of our exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility and term loan facility. As of February 26, 2022, the interest rate swap contract had a notional value of $30 million.

We periodically enter into forward purchase contracts to manage the risk associated with fluctuations in foreign currency rates (primarily related to the Canadian dollar and Euro) and aluminum prices, generally with an original maturity date of less than one year. As of February 26, 2022, we held foreign exchange forward contracts and aluminum purchase contracts with U.S. dollar notional values of $13.7 million and $7.9 million, respectively.

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 loss.

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 assets or liabilities.

44

---

Table of Contents

Financial assets and liabilities measured at fair value on a recurring basis were: 

(In thousands)						Quoted Prices in Active Markets (Level 1)						Other Observable Inputs (Level 2)						Total Fair Value
February 26, 2022
Assets:
Money market funds						$	19,288					$	—					$	19,288
Municipal and corporate bonds						—						11,784						11,784
Cash surrender value of life insurance						—						17,831						17,831
Aluminum hedging contract						—						2,133						2,133
Interest rate swap contract						—						718						718
Liabilities:
Deferred compensation						—						12,491						12,491
Foreign currency forward/option contract						—						161						161
February 27, 2021
Assets:
Money market funds						$	26,034					$	—					$	26,034
Municipal and corporate bonds						—						12,893						12,893
Cash surrender value of life insurance						—						18,632						18,632
Foreign currency forward/option contract						—						606						606
Aluminum hedging contract						—						363						363
Liabilities:
Deferred compensation						—						13,507						13,507
Interest rate swap contract						—						504						504

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 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 these participants. Changes in cash surrender value are recorded in other expense. The deferred compensation liability balances are valued based on amounts allocated by participants to the underlying performance measurement funds.

Derivative instruments

The interest rate swap is measured at fair value using unobservable market inputs, based off benchmark interest rates. Forward foreign exchange and forward purchase aluminum contracts are measured at fair value using unobservable market inputs, such as quotations on forward foreign exchange points, foreign currency exchange rates and forward purchase aluminum prices. Derivative positions are primarily valued using standard calculations and models that use as their basis readily observable market parameters. Industry standard data providers are our primary source for forward and spot rate information for interest and currency rates and aluminum prices.

Nonrecurring fair value measurements

We measure certain financial instruments at fair value on a nonrecurring basis including goodwill, intangible assets, property and equipment and right-of-use lease assets. These assets were initially measured and recognized at amounts equal to the fair value determined as of the date of acquisition or purchase subject to changes in value only for foreign currency translation. Periodically, these assets are tested for impairment, by comparing their respective carrying values to the estimated fair value of the reporting unit or asset group in which they reside. In the event any of these assets were to become impaired, we would recognize an impairment expense equal to the amount by which the carrying value of the reporting unit, impaired asset or asset group exceeds its estimated fair value. Fair value measurements of reporting units are estimated using an income approach

45

---

Table of Contents

involving discounted cash flow models that contain certain Level 3 inputs requiring significant management judgment, including projections of economic conditions, customer demand and changes in competition, revenue growth rates, gross profit margins, operating margins, capital expenditures, working capital requirements, terminal growth rates and discount rates. Fair value measurements of the reporting units associated with our goodwill balances and our indefinite-lived intangible assets are estimated at least annually in the fourth quarter of each fiscal year for purposes of impairment testing if a quantitative analysis is performed. Fair value measurements for long-lived assets or asset groups, including intangible assets subject to amortization, property and equipment and right-of-use lease assets, are valued using undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows to determine the fair value of long-lived assets.

See Note 1 and Note 6 for additional information on the impairment charges recorded to goodwill, indefinite- and finite-lived intangible assets during the fourth quarter of fiscal 2022 and 2021. See Note 16 for additional information on the impairment charges recorded to property, plant and equipment during fiscal 2022.

5.Property, Plant and Equipment

(In thousands)						2022						2021
Land						$	3,579					$	3,607
Buildings and improvements						185,774						204,660
Machinery and equipment						381,116						425,525
Office equipment and furniture						69,017						68,516
Construction in progress						15,080						13,750
Total property, plant and equipment						654,566						716,058
Less: accumulated depreciation						404,571						417,615
Net property, plant and equipment						$	249,995					$	298,443

Depreciation expense was $42.2 million, $43.9 million, and $36.1 million in fiscal 2022, 2021, and 2020, respectively.

6.    Goodwill and Other Intangible Assets

Goodwill

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

Goodwill represents the excess of the cost over the net tangible and identified intangible assets of acquired businesses. We evaluate goodwill for impairment annually as of the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Based on the impairment analysis performed in the fourth quarter, estimated fair value was in excess of carrying value at all of our reporting units. At the end of the prior year ended February 27, 2021, we incurred goodwill impairment expense of $46.7 million and $17.1 million in our EFCO and Sotawall reporting units, respectively, which represents the total accumulated goodwill impairment expenses recorded as of February 26, 2022.

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

(In thousands)						Architectural Framing Systems						Architectural Glass						Architectural Services						Large-Scale Optical						Total
Balance at February 29, 2020						$	148,183					$	25,656					$	1,120					$	10,557					$	185,516
Adjustment (1)						6,315						—						—						—						6,315
Impairment expense						(63,769)						—						—						—						(63,769)
Foreign currency translation						2,370						(334)						—						—						2,036
Balance at February 27, 2021						93,099						25,322						1,120						10,557						130,098
Foreign currency translation						82						(78)						—						—						4
Balance at February 26, 2022						$	93,181					$	25,244					$	1,120					$	10,557					$	130,102

(1) During the first quarter of fiscal 2021, 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.

46

---

Table of Contents

Indefinite-lived intangible assets

We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Based on our annual analysis, the fair value of each of our trade names and trademarks exceeded the carrying amount, however, as a result of triggering events resulting from the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, it was determined that the carrying value of the Sotawall trade name exceeded fair value by $12.7 million as it was determined to have an immaterial fair value, resulting in the trade name being fully impaired as of fiscal 2022 year end. This amount was recognized as impairment expense in the fourth quarter ended February 26, 2022.

Finite-lived intangible assets

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

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

(In thousands)						Gross Carrying Amount						Accumulated Amortization						Impairment Expense						Foreign Currency Translation						Net
February 26, 2022
Finite-lived intangible assets:
Customer relationships						$	122,961					$	(47,226)					$	(33,608)					$	141					$	42,268
Other intangibles						41,838						(35,613)						(3,127)						(14)						3,084
Total finite-lived intangible assets						164,799						(82,839)						(36,735)						127						45,352
Indefinite-lived intangible assets:
Trade names and trademarks						39,832						—						(12,738)						35						27,129
Total intangible assets						$	204,631					$	(82,839)					$	(49,473)					$	162					$	72,481
February 27, 2021
Finite-lived intangible assets:
Customer relationships						$	119,647					$	(40,443)					$	—					$	3,315					$	82,519
Other intangibles						41,293						(34,234)						—						643						7,702
Total finite-lived intangible assets						160,940						(74,677)						—						3,958						90,221
Indefinite-lived intangible assets:
Trade names and trademarks						45,300						—						(6,300)						832						39,832
Total intangible assets						$	206,240					$	(74,677)					$	(6,300)					$	4,790					$	130,053

Amortization expense on finite-lived intangible assets was $7.8 million, $7.6 million and $7.7 million in fiscal 2022, 2021 and 2020, respectively. Amortization expense is included within selling, general and administrative expenses for all intangible assets other than that of debt issuance costs, which is included in interest expense. Estimated future amortization expense for finite-lived intangible assets is: 

(In thousands)						2023						2024						2025						2026						2027
Estimated amortization expense						$	4,683					$	4,544					$	4,073					$	4,056					$	4,054

7.    Debt

As of February 26, 2022, we had a committed revolving credit facility with maximum borrowings of up to $235 million with a maturity of June 2024. There were no outstanding borrowings under the revolving credit facility, as of February 26, 2022 and February 27, 2021, respectively. As of February 26, 2022 and February 27, 2021, we also had a $150 million term loan with a maturity of June 2024.

47

---

Table of Contents

Our revolving credit facility and term loan contain two affirmative 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. If the Company is not in compliance with either of these covenants, our credit facility and term loan may be terminated and/or any amounts then outstanding may be declared immediately due and payable. At February 26, 2022, we were in compliance with both financial covenants. We have the ability to issue letters of credit of up to $80.0 million under the credit facility, the outstanding amounts of which decrease the available commitment. At February 26, 2022, $218.6 million was available under this revolving credit facility.

Debt at February 26, 2022 also included $13.0 million of industrial revenue bonds that mature in fiscal years 2023 through 2043. The fair value of the industrial revenue bonds approximated carrying value at February 26, 2022, due to the variable interest rates on these instruments. The bonds 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). No borrowings were outstanding under the facilities in place as of February 26, 2022 or as of February 27, 2021.

Debt maturities and other selected information follows:

(In thousands)						2023						2024						2025						2026						2027						Thereafter						Total
Maturities						$	1,000					$	—					$	150,000					$	—					$	—					$	12,000					$	163,000

(In thousands, except percentages)						2022						2021
Average daily borrowings during the year						$	167,542					$	187,397
Maximum borrowings outstanding during the year						168,669						235,232
Weighted average interest rate during the year						1.45		%				1.89		%

(In thousands)						February 26, 2022						February 27, 2021						February 29, 2020
Interest on debt						$	3,695					$	4,981					$	8,891
Other interest expense						866						604						326
Interest expense						$	4,561					$	5,585					$	9,217

Interest payments were $3.5 million in fiscal February 26, 2022, $4.6 million in fiscal February 27, 2021 and $9.1 million in fiscal February 29, 2020.

8.    Leases

We have operating leases for certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. At the beginning of fiscal 2020, we adopted ASU 2016-20, 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. Lease expense is recognized on a straight-line basis over the lease term. Our leases have remaining lease terms of one to ten years, some of which include renewal options that can extend the lease for up to an additional ten years at our sole discretion. We have made an accounting policy election not to record leases with an original term of 12 months or less on our consolidated balance sheet and such leases are expensed on a straight-line basis over the lease term.

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

48

---

Table of Contents

The components of lease expense were as follows:

(In thousands)						February 26, 2022						February 27, 2021
Operating lease cost						$	13,509					$	13,973
Short-term lease cost						1,024						1,910
Variable lease cost						2,991						2,827
Total lease cost						$	17,524					$	18,710

Other supplemental information related to leases for the year ended February 26, 2022 was as follows:

(In thousands)						February 26, 2022						February 27, 2021
Cash paid for amounts included in the measurement of operating lease liabilities						$	14,301					$	13,952
Lease assets obtained in exchange for new operating lease liabilities						$	3,259					$	23,772
Weighted-average remaining lease term - operating leases						5.3 years						6.0 years
Weighted-average discount rate - operating leases						2.9		%				3.0		%

Future maturities of lease liabilities are as follows:

(In thousands)						2022
Fiscal 2023						$	13,604
Fiscal 2024						11,311
Fiscal 2025						9,950
Fiscal 2026						7,929
Fiscal 2027						6,423
Thereafter						6,735
Total lease payments						55,952
Less: Amounts representing interest						3,617
Present value of lease liabilities						$	52,335

9.    Employee Benefit Plans

401(k) Retirement Plan

We sponsor a single 401(k) retirement plan covering substantially all full-time, non-union employees, as well as union employees at two of our manufacturing facilities. Under the plan, employees are allowed to contribute up to 60 percent of eligible earnings to the plan, up to statutory limits. We match 100 percent of the first one percent contributed and 50 percent of the next five percent contributed on eligible compensation that non-union employees contribute and according to contract terms for union employees. In response to the effects of COVID-19 on our business, we suspended the matching contribution from June 1, 2020 until December 31, 2020. In total, our matching contributions were $7.7 million in fiscal 2022, $3.5 million in fiscal 2021 and $9.0 million in fiscal 2020.

Deferred Compensation Plan

We maintain a plan that allows participants to defer compensation. The deferred compensation liability was $12.5 million and $15.0 million at February 26, 2022 and February 27, 2021, respectively. We have investments in corporate-owned life insurance policies (COLI) of $17.8 million and money market funds (classified as cash equivalents) of $0.3 million with the intention of utilizing them as long-term funding sources for this plan. The COLI assets are recorded at their net cash surrender values and are included in other non-current assets in the consolidated balance sheets.

Plans under Collective Bargaining Agreements

We contribute to a number of multi-employer union retirement plans, which provide retirement benefits to the majority of our union-represented employees; none of the plans are considered significant. However, the risks of participating in these multi-employer plans are different from single-employer plans in the following aspects:

•Assets contributed to these plans by one employer may be used to provide benefits to employees of other participating employers

•If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers

49

---

Table of Contents

•If we choose to stop participating in some of these plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability

Our participation in these plans is outlined in the following table. The most recent Pension Protection Act zone status available in 2022 and 2021 relates to the plan years ending December 31, 2021 and December 31, 2020, respectively. The zone status is based on information that we have received from each plan, certified by an actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are between 65 percent and 80 percent funded, and plans in the green zone are at least 80 percent funded.

												Pension Protection Act Zone Status												Contributions (In thousands)
Pension Fund						EIN/Pension Plan Number						2022						2021						2022						2021						2020						FIP/RP Status Pending/Implemented						Minimum Contribution						Surcharge Imposed						Expiration Date of Collective Bargaining Agreement(1)
Atlanta Ironworkers Local Union 387 Pension Plan						58-6051152						Green						Green						$	300					$	209					$	35					No						No						No
Glazier's Union Local 27 Pension and Retirement Plan						36-6034076						Green						Green						256						290						165						No						No						No						5/31/2018
International Painters and Allied Trades Industry Pension Fund						52-6073909						Red						Red						837						932						525						Implemented																		4/30/2017
Iron Workers Local Union No. 5 and Iron Workers Employers Association Employees Pension Trust Fund						52-1075473						Green						Green						1,125						1,454						940						No						No						No						5/31/2017
Iron Workers Mid-America Pension Fund						36-6488227						Green						Green						546						431						767						No						No						No						5/31/2017
Iron Workers St. Louis District Council Pension Trust Fund						43-6052659						Green						Green						—						63						217						No						No						No
Western Glaziers Retirement Plan (Washington)						91-6123685						Green						Green						583						160						526						No						No						No						6/30/2017
Other funds																								783						525						581
Total contributions																								$	4,430					$	4,064					$	3,756
(1) Plans include contributions required by collective bargaining agreements which have expired, but contain provisions automatically renewing their terms in the absence of a subsequent negotiated agreement.

The Company was listed in the plans' Forms 5500 as providing more than 5 percent of the total contributions for the following plans and plan years:

Pension Fund						Year contributions to Plan Exceeded More Than 5 Percent of Total Contributions
Iron Workers Local Union No. 5 and Iron Workers Employers Association Employees Pension Trust Fund						2021 and 2020
Iron Workers Mid-America Pension Fund						2021 and 2020
Iron Workers St. Louis District Council Pension Trust Fund						2021
Western Glaziers Retirement Plan (Washington)						2021
Western Glaziers Retirement Fund (Oregon and Southwest Washington)						2020
Texas Iron Workers' Pension Plan						2020
Texas Iron Workers'Annuity						2020
Southern Iron Workers Pension Fund						2020
Upstate New York Engineers Pension Fund						2020

Amounts contributed in fiscal 2022, 2021, and 2020 to defined contribution multiemployer plans were $1.7 million, $1.5 million and $0.9 million, respectively.

Obligations and Funded Status of Defined-Benefit Pension Plans

We sponsor the Tubelite Inc. Hourly Employees' Pension Plan, a defined-benefit pension plan that was frozen to new entrants in fiscal 2004, with no additional benefits accruing to plan participants after such time. We also sponsor an unfunded SERP, a defined-benefit pension plan that was frozen to new entrants in fiscal 2009, with no additional benefits accruing to plan participants after such time.

50

---

Table of Contents

The following tables present reconciliations of the benefit obligation and the funded status of these plans. The Tubelite plan uses a measurement date as of the calendar month-end closest to our fiscal year-end, while the SERP uses a measurement date aligned with our fiscal year-end.

(In thousands)						2022						2021
Change in projected benefit obligation
Benefit obligation beginning of period						$	13,541					$	14,371
Interest cost						339						346
Actuarial gain						(475)						(175)
Benefits paid						(1,000)						(1,001)
Benefit obligation at measurement date						12,405						13,541
Change in plan assets
Fair value of plan assets beginning of period						$	5,551					$	5,986
Actual return on plan assets						(161)						(88)
Company contributions						654						654
Benefits paid						(1,000)						(1,001)
Fair value of plan assets at measurement date						5,044						5,551
Underfunded status						$	(7,361)					$	(7,990)

The funded status was recognized in the consolidated balance sheets as follows:

(In thousands)						2022						2021
Other non-current assets						$	361					$	423
Current liabilities						(681)						(683)
Other non-current liabilities						(7,041)						(7,730)
Total						$	(7,361)					$	(7,990)

The following was included in accumulated other comprehensive loss and has not yet been recognized as a component of net periodic benefit cost:

(In thousands)						2022						2021
Net actuarial loss						$	4,916					$	5,416

The net actuarial gain recognized in comprehensive earnings, net of tax expense, was $0.4 million in fiscal 2022, and $0.1 million in fiscal 2021.

Components of the defined-benefit pension plans' net periodic benefit cost:

(In thousands)						2022						2021						2020
Interest cost						$	339					$	346					$	492
Expected return on assets						(85)						(211)						(182)
Amortization of unrecognized net loss						270						260						219
Net periodic benefit cost						$	524					$	395					$	529

Total net periodic pension benefit cost is expected to be approximately $0.6 million in fiscal 2023. The estimated net actuarial gain for the defined-benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for fiscal 2023 is $0.1 million, net of tax expense.

51

---

Table of Contents

Additional Information

Assumptions

Benefit Obligation Weighted-Average Assumptions						2022						2021						2020
Discount rate						3.20		%				2.60		%				3.80		%

Net Periodic Benefit Expense Weighted-Average Assumptions						2022						2021						2020
Discount rate						2.60		%				2.50		%				2.50		%
Expected long-term rate of return on assets						2.50		%				4.50		%				4.50		%

Discount rate. The discount rate reflects the current rate at which the defined-benefit plans' pension liabilities could be effectively settled at the end of the year based on the measurement date. The discount rate was determined by matching the expected benefit payments to payments from the Principal Discount Yield Curve. There are no known or anticipated changes in the discount rate assumption that will have a significant impact on pension expense in fiscal 2023.

Expected return on assets. To develop the expected long-term rate of return on assets, we considered historical long-term rates of return achieved by the plan investments, the plan's investment strategy, and current and projected market conditions. During fiscal 2019, the assets of the Tubelite plan were moved from investment in a short-term bond fund to various duration fixed income funds. The investments are carried at fair value based on prices from recent trades of similar securities, which would be classified as Level 2 in the valuation hierarchy. We do not maintain assets intended for the future use of the SERP.

Contributions

Company contributions to the plans for fiscal 2022 and fiscal 2021 were $0.7 million in each year, which equaled or exceeded the minimum funding requirements.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, are expected to be paid by the plans:

(In thousands)						2023						2024						2025						2026						2027						2028-2032
Estimated future benefit payments						$	1,041					$	993					$	964					$	936					$	909					$	4,041

10.    Commitments and Contingent Liabilities

Bond commitments

In the ordinary course of business, predominantly in the 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 February 26, 2022, $1.2 billion of these types of bonds were outstanding, of which, $352.5 million is on our backlog. These bonds do not have stated expiration dates, as we are released from the bonds upon completion of the contract. 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 costs 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:

(In thousands)						2022						2021
Balance at beginning of period						$	14,999					$	15,629
Additional accruals						10,138						5,758
Claims paid						(11,214)						(6,388)
Balance at end of period						$	13,923					$	14,999

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 $0.1 million and $4.6 million as of February 26, 2022 and February 27, 2021, respectively.

52

---

Table of Contents

Letters of credit

At February 26, 2022, we had $16.4 million of ongoing letters of credit, all of which have been issued under our revolving credit facility, as discussed in Note 7. We also have a $6.9 million letter of credit which has been issued outside our committed revolving credit facility, with no impact on our borrowing capacity and debt covenants.

Purchase obligations

Purchase obligations, primarily for raw material commitments and capital expenditures totaled $209.2 million as of February 26, 2022.

Environmental liability

In fiscal 2008, we acquired one manufacturing facility which has certain historical environmental conditions. Remediation of these conditions is ongoing without significant disruption to our operations. The estimated remaining liability for these remediation activities was $0.5 million at February 26, 2022 and February 27, 2021, respectively.

New Markets Tax Credit (NMTC) transactions

As of year-end fiscal 2022, we have three outstanding NMTC arrangements which help to support operational expansion. Proceeds received from investors on these transactions are included within other current and non-current liabilities on our consolidated balance sheets. The NMTC arrangements are subject to 100 percent tax credit recapture for a period of seven years from the date of each respective transaction. 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 for each project, we are required to hold cash dedicated to fund each capital project which is classified as restricted cash on our consolidated balance sheets. Variable-interest entities, which have been included within our consolidated financial statements, have been created as a result of the structure of these transactions, as investors in the programs do not have a material interest in their underlying economics. During the third quarter of fiscal 2021, we settled one arrangement at the end of the seven year term 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 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						1.4						5.2
						September 2018						September 2025						3.2						1.0						2.2
						Total												$	15.8					$	3.6					$	12.2

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. We have in the past and are currently subject to product liability and warranty claims, including certain legal claims related to a commercial sealant product formerly incorporated into our products. 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.

11.    Shareholders' Equity

A class of 200,000 shares of junior preferred stock with a par value of $1.00 is authorized, but unissued.

Share Repurchases

During fiscal 2004, the Board of Directors authorized a share repurchase program, with subsequent increases in authorization. We repurchased 2,292,846 shares under the program during fiscal 2022, for a total cost of $100.0 million. We repurchased 1,177,704 shares under the program, for a total cost of $32.9 million, in fiscal 2021, and 686,997 shares under the program, for a total cost of $25.1 million, in fiscal 2020. The Company has repurchased a total of 9,425,462 shares, at a total cost of $307.3

53

---

Table of Contents

million, since the inception of this program. We have remaining authority to repurchase 1,824,538 shares under this program, which has no expiration date.

In addition to the shares repurchased under this repurchase plan, during fiscal 2022, 2021 and 2020, the Company also withheld $2.1 million, $3.0 million and $2.3 million, respectively, of Company stock from employees in order to satisfy stock-for-stock option exercises or tax obligations related to stock-based compensation, pursuant to terms of board and shareholder-approved compensation plans.

Accumulated Other Comprehensive Loss

The following summarizes the accumulated other comprehensive loss, net of tax, at February 26, 2022 and February 27, 2021:

(In thousands)						2022						2021
Net unrealized (loss) gain on marketable securities						$	(58)					$	302
Foreign currency hedge						2,717						643
Pension liability adjustments						(3,770)						(4,152)
Foreign currency translation adjustments						(25,129)						(24,820)
Total accumulated other comprehensive loss						$	(26,240)					$	(28,027)

12.    Share-Based Compensation

We have a 2019 Stock Incentive Plan and a 2019 Non-Employee Director Stock Plan (the Plans) that provide for the issuance of 1,150,000 and 150,000 shares, respectively, for various forms of stock-based compensation to employees and non-employee directors. We also have a 2009 Stock Incentive Plan and 2009 Non-Employee Director Stock Incentive Plan with shares reserved for issuance for outstanding unvested awards. Awards under these Plans may be in the form of incentive stock options (to employees only), nonstatutory options, stock-settled stock appreciation rights (SARs), or nonvested share awards and units, all of which are granted at a price or with an exercise price equal to the fair market value of the Company’s stock at the date of award. No additional awards can be made under the 2009 Stock Incentive Plan or the 2009 Non-Employee Director Stock Incentive Plan. Nonvested share awards and units generally vest over a two, three or four-year period.

Total stock-based compensation expense was $6.3 million in fiscal 2022, $8.6 million in fiscal 2021 and $6.6 million in fiscal 2020. We account for any forfeitures as they occur.

Stock Options and SARs

In June 2020, we granted 660,600 stock options which had a weighted average fair value per option at the date of grant of $5.01.

The fair value of each award grant is estimated on the date of grant using the binomial lattice option-pricing model with the following weighted-average assumptions used for grants in fiscal 2021.

			2021
Dividend yield			3.3		%
Expected volatility			40.0		%
Risk-free interest rate			0.7		%
Maximum price			$	35.70

The expected stock price volatility is based on historical experience. The risk-free rate for periods that coincide with the expected life of the options is based on the U.S. Treasury Department yield curve in effect at the time of grant.

Stock option and SAR activity for the current fiscal year is summarized below:

						Number of Shares						Weighted Average Exercise  Price						Weighted Average Remaining Contractual Life						Aggregate Intrinsic Value at Year-End
Outstanding at February 27, 2021						633,700						$	23.04
Awards exercised						(178,564)						23.04
Awards canceled						(84,336)						23.04
Outstanding at February 26, 2022						370,800						$	23.04					8.3 years						$	4,694,328
Vested or expected to vest at February 26, 2022						370,800						$	23.04					8.3 years						$	4,694,328

54

---

Table of Contents

Cash proceeds from the exercise of stock options were $4.1 million for fiscal 2022 and $1.5 million for fiscal 2021. 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 $2.3 million in fiscal 2022 and $1.8 million in fiscal 2021. No awards were issued or exercised during fiscal 2020.

Nonvested Share Awards and Units

The following table summarizes nonvested share activity for fiscal February 26, 2022: 

						Number of Shares and Units						Weighted Average Grant Date Fair Value
February 27, 2021						475,227						$	27.52
Granted						236,195						35.54
Vested						(191,995)						30.44
Canceled						(30,483)						29.06
February 26, 2022						488,944						$	30.14

At February 26, 2022, there was $9.5 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 fiscal February 26, 2022 was $7.2 million.

13.    Income Taxes

Earnings before income taxes consisted of the following:

(In thousands)						2022						2021						2020
United States						$	70,039					$	45,651					$	97,297
International						(56,170)						(23,040)						(17,547)
Earnings before income taxes						$	13,869					$	22,611					$	79,750

The components of income tax expense for each of the last three fiscal years are as follows:

(In thousands)						2022						2021						2020
Current
Federal						$	13,806					$	11,495					$	8,493
State and local						4,823						702						2,064
International						39						1,642						(2,720)
Total current						18,668						13,839						7,837
Deferred
Federal						(1,528)						(2,860)						9,513
State and local						(4,270)						538						2,152
International						(2,158)						(4,138)						(1,202)
Total deferred						(7,956)						(6,460)						10,463
Total non-current tax (benefit) expense						(329)						(204)						(464)
Total income tax expense						$	10,383					$	7,175					$	17,836

Income tax payments, net of refunds, were $8.2 million, $14.1 million and $17.8 million in fiscal 2022, 2021 and 2020, respectively.

55

---

Table of Contents

The following table provides a reconciliation of the statutory federal income tax rate to our consolidated effective tax rates:

						2022						2021						2020
Statutory federal income tax rate						21.0		%				21.0		%				21.0		%
State and local income taxes, net of federal tax benefit						16.4						(2.5)						1.8
Foreign tax rate differential						(15.4)						(3.4)						(1.3)
Nondeductible goodwill impairment expense						—						5.6						—
Valuation allowance						63.2						11.4						2.2
Nontaxable gain (loss) on life insurance policies						1.2						(1.8)						(0.4)
Deduction for foreign derived intangible income						(2.6)						(0.8)						(0.3)
Research & development tax credit						(9.4)						(5.3)						(1.6)
§162(m) Executive Compensation Limitation						3.5						3.6						0.3
Tax benefit of share based awards						(5.2)						0.2						0.2
Other, net						2.2						3.7						0.5
Consolidated effective income tax rate						74.9		%				31.7		%				22.4		%

The estimated effective tax rate for fiscal 2022 increased 43.2 percentage points from fiscal 2021, primarily due to the valuation allowance recorded against the tax benefit of the Sotawall impairment and the impact of the permanent items in relation to reduced earnings in fiscal 2022.

Deferred tax assets and deferred tax liabilities at February 26, 2022 and February 27, 2021 were:

(In thousands)						2022						2021
Deferred tax assets
Accrued expenses						$	3,515					$	6,309
Deferred compensation						8,602						9,452
Depreciation						509						—
Employment tax accrual						1,546						1,483
Goodwill and other intangibles						13,237						4,215
Liability for unrecognized tax benefits						1,965						1,916
Unearned income						9,802						5,778
Operating lease liabilities						13,769						16,039
Net operating losses and tax credits						8,580						9,952
Other						2,931						1,984
Total deferred tax assets						64,456						57,128
Less: valuation allowance						(15,370)						(7,435)
Deferred tax assets, net of valuation allowance						49,086						49,693
Deferred tax liabilities
Accrued expenses						558						1,095
Goodwill and other intangibles						2,516						3,263
Depreciation						26,095						34,573
Operating lease, right-of-use assets						12,768						15,435
Other						3,015						820
Total deferred tax liabilities						44,952						55,186
Net deferred tax assets (liabilities)						$	4,134					$	(5,493)

The Company has state and foreign net operating loss carryforwards with a tax effect of $8.6 million. A valuation allowance of $4.5 million has been established for these net operating loss carryforwards due to the uncertainty of the use of the tax benefits in future periods.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing Deferred Tax Assets ("DTAs"). This has resulted in valuation allowances being recorded

56

---

Table of Contents

against DTAs in prior years in Brazil, Canada and various states. During the fourth quarter of fiscal 2022, an additional valuation allowance of $11.5 million was recorded against Canadian DTAs to recognize only the portion of the DTA that is more likely than not to be realized. As of February 26, 2022, we have a full valuation allowance recorded against our Canadian DTAs. A significant piece of objective negative evidence evaluated in the fourth quarter of fiscal 2022 was the cumulative losses incurred in Canada over the three-year period ended February 26, 2022, driven primarily by the impairments recorded in the fourth quarter of fiscal 2022. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. The amount of the DTA considered realizable could be adjusted if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth or if the Company were to identify and implement a tax strategy to provide a future source of taxable income.

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 2019, 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 2018, and there is very limited audit activity of the Company’s income tax returns in U.S. state jurisdictions or international jurisdictions.

The Company considers the earnings of its non-U.S. subsidiaries to be indefinitely invested outside of the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and specific plans for reinvestment of those subsidiary earnings. Should the Company decide to repatriate the foreign earnings, it would need to adjust the income tax provision in the period it was determined that the earnings will no longer be indefinitely invested outside the U.S.

If we were to prevail on all unrecognized tax benefits recorded, $1.7 million, $2.2 million and $2.6 million for fiscal 2022, 2021 and 2020, respectively, would benefit the effective tax rate. 

Penalties and interest related to unrecognized tax benefits are recorded in income tax expense. For fiscal 2022, 2021 and 2020, we accrued penalties and interest related to unrecognized tax benefits of $0.3 million.

The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:

(In thousands)						2022						2021						2020
Gross unrecognized tax benefits at beginning of year						$	3,755					$	4,071					$	5,111
Gross increases in tax positions for prior years						108						106						82
Gross decreases in tax positions for prior years						(145)						(351)						(1,100)
Gross increases based on tax positions related to the current year						420						429						425
Settlements						(147)						(96)						(15)
Statute of limitations expiration						(670)						(404)						(432)
Gross unrecognized tax benefits at end of year						$	3,321					$	3,755					$	4,071

On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in response to the COVID-19 pandemic. The CARES Act contains numerous income tax provisions, such as relaxing limitations on the deductibility of interest and the ability to carryback net operating losses arising in taxable years from 2018 through 2020. While these provisions did not impact the Company, a provision related to the temporary deferral of the employer share of payroll taxes allowed us to defer remittance of $13.6 million of payroll taxes in calendar 2020. During the fourth quarter of fiscal 2022, we repaid half of the deferred tax payments in the amount of $6.8 million, with the remaining amount of $6.8 million included within accrued payroll and other benefits on our consolidated balance sheets to be repaid in calendar year 2022.

14.Earnings per Share

Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding, including the dilutive effects of stock options, SARs and nonvested shares. The following table presents a reconciliation of the share amounts used in the computation of basic and diluted earnings per share:

57

---

Table of Contents

(In thousands)						2022						2021						2020
Basic earnings per share - weighted average common shares outstanding						24,920						25,955						26,474
Weighted average effect of nonvested share grants and assumed exercise of stock options						372						349						255
Diluted earnings per share - weighted average common shares and potential common shares outstanding						25,292						26,304						26,729
Stock awards excluded from the calculation of earnings per share because the award price was greater than the average market price of the common shares						1						111						99

15.Business Segment Data

We have four reporting segments:

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

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

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

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

(In thousands)						2022						2021						2020
Net Sales
Architectural Framing Systems						$	596,608					$	570,850					$	686,596
Architectural Glass						309,241						330,256						387,191
Architectural Services						349,386						295,807						269,140
Large-Scale Optical						101,673						70,050						87,911
Intersegment elimination						(42,931)						(36,189)						(43,399)
Total						$	1,313,977					$	1,230,774					$	1,387,439
Operating (Loss) Income
Architectural Framing Systems						$	(16,726)					$	(44,761)					$	36,110
Architectural Glass						1,785						18,678						20,760
Architectural Services						32,743						31,182						23,582
Large-Scale Optical						23,618						31,203						22,642
Corporate and other						(19,375)						(10,775)						(15,246)
Total						$	22,045					$	25,527					$	87,848
Depreciation and Amortization
Architectural Framing Systems						$	26,434					$	27,298					$	25,432
Architectural Glass						14,564						15,102						13,570
Architectural Services						1,422						1,430						1,305
Large-Scale Optical						3,185						3,338						3,256
Corporate and other						4,388						4,272						3,232
Total						$	49,993					$	51,440					$	46,795
Capital Expenditures
Architectural Framing Systems						$	8,101					$	9,907					$	22,744
Architectural Glass						5,865						9,574						19,862
Architectural Services						2,692						1,480						1,749
Large-Scale Optical						2,250						869						3,153
Corporate and other						2,933						4,335						3,920
Total						$	21,841					$	26,165					$	51,428

58

---

Table of Contents

(In thousands)						2022						2021						2020
Identifiable Assets
Architectural Framing Systems						$	466,141					$	511,608					$	604,870
Architectural Glass						225,362						271,520						291,104
Architectural Services						61,991						79,465						107,538
Large-Scale Optical						56,926						64,474						62,831
Corporate and other						77,443						88,032						62,648
Total						$	887,863					$	1,015,099					$	1,128,991

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

Segment operating income is equal to net sales less cost of sales and operating expenses. Operating income does not include interest expense or a provision for income taxes. Architectural Framing Systems segment results include $49.5 million and $70.1 million of impairment charges and $1.7 million and $5.3 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively. Architectural Glass segment results include $27.1 million and $0.3 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively. Corporate and other includes miscellaneous corporate activity, including certain legal, consulting and advisory costs and certain employee benefit costs not allocable to our segments, as well as $1.7 million and $0.2 million of restructuring charges in fiscal 2022 and fiscal 2021, respectively. Corporate and other also includes $16.7 million in fiscal 2020, of project-related charges on acquired contracts, as well as $15.0 million of insurance proceeds related to a project matter in fiscal 2020. Identifiable assets for Corporate and other include all short- and long-term available-for-sale securities.

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

(In thousands)						2022						2021						2020
Net Sales
United States						$	1,194,141					$	1,115,872					$	1,254,311
Canada						102,027						102,721						120,498
Brazil						17,809						12,181						12,630
Total						$	1,313,977					$	1,230,774					$	1,387,439
Long-Lived Assets
United States						$	239,264					$	285,007					$	307,782
Canada						7,742						9,707						11,130
Brazil						2,989						3,729						5,474
Total						$	249,995					$	298,443					$	324,386

Apogee's export net sales from U.S. operations were $59.5 million, $33.1 million, and $54.7 million in fiscal 2022, 2021, and 2020, respectively, representing approximately 5 percent of consolidated net sales in each of these fiscal years.

16.Restructuring

During the second quarter of fiscal 2022, we announced plans to realign and simplify our business structure which resulted in the closure of two facilities within the Architectural Glass segment, in Dallas, Texas and Statesboro, Georgia. These closures were made in order to concentrate this segment on premium, high-performance products. Additionally, employee termination costs were incurred related to these facility closures, realignment of the Architectural Framing Systems segment, and within the Corporate office. During the fourth quarter of fiscal 2022, as a result of the announced restructuring plan, we sold a building in Statesboro, Georgia within our Architectural Glass segment for $29.1 million. The carrying value of the building was $9.4 million, and we recognized a gain on this sale of approximately $19.5 million, net of associated transaction costs, which is included as a reduction of cost of sales within our consolidated statements of operations.

For the year ended February 26, 2022, we incurred $30.5 million of pre-tax costs associated with the execution of these restructuring plans, of which $28.2 million is included within cost of sales and $2.3 million is included within selling, general and administrative expenses, excluding the gain on sale mentioned above, within our consolidated statements of operations.

59

---

Table of Contents

For the year ended February 27, 2021, we closed seven facilities within our Architectural Framing Systems segment, exited certain leases for those facilities, and provided certain termination benefits to employees across the Company, resulting in restructuring-related costs of $5.8 million, of which $5.2 million is included within cost of sales and $0.6 million is included within selling, general and administrative expenses within our consolidated statements of operations.

(In thousands)						Architectural Framing						Architectural Glass						Corporate & Other						Total
February 26, 2022
Asset impairment on property, plant and equipment						$	54					$	21,443					$	—					$	21,497
Termination benefits						1,435						3,718						1,039						6,192
Other restructuring charges						244						1,935						644						2,823
Total restructuring charges						$	1,733					$	27,096					$	1,683					$	30,512
February 27, 2021
Asset impairment on leases and property, plant and equipment						$	3,566					$	—					$	—					$	3,566
Termination benefits						1,491						325						229						2,045
Other restructuring charges						224						—						—						224
Total restructuring charges						$	5,281					$	325					$	229					$	5,835

The following table summarizes our restructuring related accrual balances included within accrued payroll and related benefits and other current liabilities in the consolidated balance sheets. All balances are expected to be paid within fiscal 2023.

(In thousands)						Architectural Framing						Architectural Glass						Corporate & Other						Total
Balance at February 29, 2020						$	—					$	—					$	—					$	—
Restructuring expense						4,020						325						229						4,574
Payments						(1,148)						(95)						(68)						(1,311)
Balance at February 27, 2021						$	2,872					$	230					$	161					$	3,263
Restructuring expense						2,000						1,036						1,039						4,075
Payments						(3,567)						(529)						(972)						(5,068)
Other adjustments						(865)						—						—						(865)
Balance at February 26, 2022						440						737						228						1,405

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.CONTROLS AND PROCEDURES

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

Management's Annual Report on Internal Control Over Financial Reporting. The report of management required under this Item 9A is contained on page 27 in Item 8 of this Annual Report on Form 10-K under the caption “Management's Annual Report on Internal Control Over Financial Reporting.”

Attestation Report of Independent Registered Public Accounting Firm. The attestation report required under this Item 9A is contained on page 28 in Item 8 of this Annual Report on Form 10-K under the caption “Report of Independent Registered Public Accounting Firm.”

Changes in Internal Control over Financial Reporting.  There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent fiscal quarter covered by this report that would have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

ITEM 9B.OTHER INFORMATION

None.

ITEM 9C.DISCLOSURES REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

PART III

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS, CODE OF ETHICS AND CORPORATE GOVERNANCE

We have adopted a Code of Business Ethics and Conduct that applies to all of our employees, including our principal executive officer, president, principal financial officer and principal accounting officer, and Board of Directors. The Code of Business Ethics and Conduct is published on the “Investors-Governance” section of our website at www.apog.com. Any amendments to the Code of Business Ethics and Conduct and waivers of the Code of Business Ethics and Conduct for our Chief Executive Officer and Chief Financial Officer will be published on our website.

The other information required by this item, other than the information set forth in Part I above under the heading “Information About Our Executive Officers,” is set forth under the headings “Proposal 1: Election of Directors,” “Frequently Asked Questions - How Can I Recommend or Nominate a Director Candidate?”, “Corporate Governance - Board Meetings and 2021 Annual Meeting of Shareholders,” and “Corporate Governance - Board Committee Responsibilities, Meetings and Membership” in the Proxy Statement for the Company's Annual Meeting of Shareholders to be held on June 22, 2022, which will be filed with the Securities and Exchange Commission within 120 days after our fiscal year-end (our 2022 Proxy Statement). This information is incorporated herein by reference.

ITEM 11.EXECUTIVE AND DIRECTOR COMPENSATION

The information required by this item is set forth under the headings “Executive Compensation,” "CEO Pay Ratio Disclosure" and “Non-Employee Director Compensation" in our 2022 Proxy Statement. This information is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item is set forth under the headings “Equity Compensation Plan Information”, “Security Ownership of Certain Beneficial Owners” and “Security Ownership of Directors and Management” in our 2022 Proxy Statement. This information is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is set forth under the headings “Corporate Governance - Director Independence” and "Corporate Governance - Certain Relationships and Related Transactions" in our 2022 Proxy Statement. This information is incorporated herein by reference.

60

---

Table of Contents

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information about aggregate fees billed to us by our principal accountant, Deloitte & Touche LLP (PCAOB ID No. 34) will be presented under the headings “Audit Committee Report" and "Fees Paid to Independent Registered Public Accounting Firm - Audit Fees, Audit-Related Fees, Tax Fees and All Other Fees” and “Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services” in our 2022 Proxy Statement. This information is incorporated herein by reference.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

a)List of documents filed as a part of this report:

1.Financial Statements - The consolidated financial statements listed below are set forth in Item 8 of Part II of this report.

Consolidated Balance Sheets as of February 26, 2022 and February 27, 2021

Consolidated Results of Operations for the Years Ended February 26, 2022, February 27, 2021 and February 29, 2020

Consolidated Statements of Comprehensive Earnings for the Years Ended February 26, 2022, February 27, 2021 and February 29, 2020

Consolidated Statements of Cash Flows for the Years Ended February 26, 2022, February 27, 2021 and February 29, 2020

Consolidated Statements of Shareholders' Equity for the Years Ended February 26, 2022, February 27, 2021 and February 29, 2020

     

Notes to Consolidated Financial Statements

2.Financial Statement Schedules - All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

3.Exhibits - Exhibits marked with an asterisk (*) identify each management contract or compensatory plan or arrangement. Exhibits marked with a pound sign (#) are filed herewith. The remainder of the exhibits have heretofore been filed with the Securities and Exchange Commission and are incorporated herein by reference.

3.1						Restated Articles of Incorporation. Incorporated by reference to Exhibit 3.1 to Registrant's Annual Report on Form 10-K for the year-ended February 28, 2004.
3.2						Articles of Amendment to Restated Articles of Incorporation. Incorporated by reference to Exhibit 3.1 to Registrant's Current Report on Form 8-K filed on January 16, 2020.
3.3						Amended and Restated Bylaws of Apogee Enterprises, Inc. Incorporated by reference to Exhibit 3.1 to Registrant's Current Report on Form 8-K filed on April 26, 2021.
4.1						Specimen certificate for shares of common stock of Apogee Enterprises, Inc. Incorporated by reference to Exhibit 4.1 to Registrant's Quarterly Report on Form 10-Q filed on July 1, 2021.
4.2						Description of Securities. Incorporated by reference to Exhibit 4.2 to Registrant's Annual Report on Form 10-K for the year ended February 29, 2020.
10.1*						Apogee Enterprises, Inc. Deferred Compensation Plan for Non-Employee Directors (2014 Restatement). Incorporated by reference to Exhibit 4.4 to Registrant's Registration Statement on Form S-8 filed on July 24, 2014.
10.2*						Apogee Enterprises, Inc. 2021 Deferred Compensation Plan for Non-Employee Directors. Incorporated by reference to Exhibit 4.5 to Apogee’s Registration Statement on Form S-8 filed on October 13, 2021.
10.3*						Apogee Enterprises, Inc. 2000 Employee Stock Purchase Plan (Amended and Restated Effective as of April 21, 2021). Incorporated by reference to Exhibit 10.4 to Apogee’s Annual Report on Form 10-K filed on April 22, 2021.
10.4*						Apogee Enterprises, Inc. Non-Employee Director Charitable Matching Contribution Program. Incorporated by reference to Exhibit 10.25 to Registrant's Annual Report on Form 10-K for the year-ended February 26, 2005.
10.5*						Apogee Enterprises, Inc. Deferred Incentive Compensation Plan (2005 Restatement). Incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K filed on October 17, 2006.

61

---

Table of Contents

10.6*						Apogee Enterprises, Inc. 2009 Stock Incentive Plan, as amended and restated (2011). Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on June 28, 2011.
10.7*						Apogee Enterprises, Inc. 2009 Non-Employee Director Stock Incentive Plan, as amended and restated (2014). Incorporated by reference to Exhibit 4.4 to Registrant's Registration Statement on Form S-8 filed on July 24, 2014.
10.8*						Form of Restricted Stock Agreement under the Apogee Enterprises, Inc. 2009 Non-Employee Director Stock Incentive Plan. Incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K filed on June 30, 2009.
10.9*						Restricted Stock Deferral Program under the Apogee Enterprises, Inc. 2009 Non-Employee Director Stock Incentive Plan, as Amended and Restated (2014) (2015 Statement). Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on June 30, 2015.
10.10*						Form of Deferred Restricted Stock Unit Agreement under the Apogee Enterprises, Inc. 2009 Non-Employee Director Stock Incentive Plan, as Amended and Restated (2014) (2015 Statement). Incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed on June 30, 2015.
10.11*						Form of Restricted Stock Agreement under the Apogee Enterprises, Inc. 2009 Stock Incentive Plan for awards made on or after April 26, 2011. Incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K filed on May 2, 2011.
10.12*						Apogee Enterprises, Inc. 2011 Deferred Compensation Plan, effective January 1, 2011. Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on October 12, 2010.
10.13*						First Amendment to the Apogee Enterprises, Inc. 2011 Deferred Compensation Plan. Incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed July 1, 2014.
10.14*						Second Amendment to the Apogee Enterprises, Inc. 2011 Deferred Compensation Plan. Incorporated herein by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on June 29, 2016.
10.15*						Third Amendment to the Apogee Enterprises, Inc. 2011 Deferred Compensation Plan, dated October 5, 2017. Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 10, 2017.
10.16*						Fourth Amendment to the Apogee Enterprises, Inc. 2011 Deferred Compensation Plan, dated June 28, 2018. Incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed on July 3, 2018.
10.17						Stock Purchase Agreement, dated as of April 28, 2017, by and among Apogee Enterprises, Inc., EFCO Corporation, and Pella Corporation. Incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on May 2, 2017.
10.18*						Form of Change-in-Control Severance Agreement. Incorporated herein by reference to Exhibit 10.38 to Registrant's Annual Report on Form 10-K filed on April 30, 2018.
10.19*						Apogee Enterprises, Inc. 401(k) Retirement Plan, effective January 1, 2015. Incorporated by reference to Exhibit 4.4 to Registrant's Registration Statement on Form S-8 filed October 9, 2015.
10.20*						Apogee Enterprises, Inc. 2019 Stock Incentive Plan. Incorporated by reference to Exhibit 4.5 to Registrant's Registration Statement on Form S-8 filed on February 12, 2020.
10.21*						Form of Restricted Stock Agreement under the Apogee Enterprises, Inc. 2019 Stock Plan. Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on January 16, 2020.
10.22*						Form of Stock Option Agreement under the Apogee Enterprises, Inc. 2019 Stock Incentive Plan. Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on July 7, 2020.
10.23*						Apogee Enterprises, Inc. 2019 Stock Incentive Plan, as Amended and Restated (2021). Incorporated by reference to Exhibit 4.5 to Apogee’s Registration Statement on Form S-8 filed on June 25, 2021.
10.24*						Form of Restricted Stock Agreement under the Apogee Enterprises, Inc. 2019 Non-Employee Director Stock Plan. Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on January 16, 2020.
10.25*						Form of Deferred Restricted Stock Unit Agreement under the Apogee Enterprises, Inc. 2019 Non-Employee Director Stock Incentive Plan. Incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed on January 16, 2020.
10.26*						Restricted Stock Deferral Program Under the Apogee Enterprises, Inc. 2019 Non-Employee Director Stock Incentive Plan. Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on April 29, 2020.
10.27*						Form of Restricted Stock Unit Agreement under the Apogee Enterprises, Inc. 2019 Non-Employee Director Stock Plan. Incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed on April 29, 2020.
10.28*						Form of CEO Evaluation-Based Incentive Agreement. Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on April 30, 2019.
10.29*						Offer Letter dated May 27, 2020 between Apogee Enterprises, Inc. and Nisheet Gupta. Incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q filed on July 9, 2020.
10.30*						Form of Annual Cash Incentive Award Agreement. Incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed on July 7, 2020.
10.31*						Transition Agreement between Apogee Enterprises, Inc. and Joseph F. Puishys, dated September 15, 2020. Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on September 17, 2020.

62

---

Table of Contents

10.32*						Employment Agreement between Apogee Enterprises, Inc. and Ty R. Silberhorn, dated December 15, 2020. Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on December 21, 2020.
10.33*						Form of Restricted Stock Award Agreement entered into by Apogee Enterprises, Inc. and Ty R. Silberhorn on January 4, 2021. Incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on December 21, 2020.
10.34*						Form of Restricted Stock Agreement. Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on April 26, 2021.
10.35*						Form of Performance Award Agreement. Incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed on April 26, 2021.
10.36*						Form of Executive Short-Term Incentive Plan Memorandum. Incorporated by reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K filed on April 26, 2021.
10.37*						Executive Short-Term Incentive Plan Terms and Conditions. Incorporated by reference to Exhibit 10.4 to Registrant's Current Report on Form 8-K filed on April 26, 2021.
10.38						Third Amended and Restated Credit Agreement, dated as of June 25, 2019, by and among Apogee Enterprises, Inc., as the Borrower, the Lenders referred to therein, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and U.S. Bank National Association, as Syndication Agent and Issuing Lender. Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on June 28, 2019.
10.39						Stock Repurchase Agreement between Apogee Enterprises, Inc. and Joseph F. Puishys, dated May 26, 2021. Incorporated by reference to Exhibit 10.1 to Registrant's Quarterly Report on Form 10-Q filed on July 1, 2021.
10.40						Amendment No. 1 to Third Amended and Restated Credit Agreement dated as of June 25, 2019, by and among Apogee Enterprises, Inc., as the Borrower, the Lenders referred to therein, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and U.S. Bank National Association, as Syndication Agent and Issuing Lender. Incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on April 10, 2020.
10.41						Amendment No. 2 to Third Amended and Restated Credit Agreement dated as of November 6, 2020, by and among Apogee Enterprises, Inc., as the Borrower, the Lenders referred to therein, Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and U.S. Bank National Association, as Syndication Agent and Issuing Lender. Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on November 10, 2020.
21#						Subsidiaries of the Registrant.
23#						Consent of Deloitte & Touche LLP.
31.1#						Certification of Chief Executive Officer pursuant to rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2#						Certification of Chief Financial Officer pursuant to rule 13a-14(a) under the Securities Exchange Act of 1934.
32.1#						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2#						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101						The following materials from Apogee Enterprises, Inc.'s Annual Report on Form 10-K for the year ended February 26, 2022 are furnished herewith, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of February 26, 2022 and February 27, 2021, (ii) the Consolidated Results of Operations for the three years ended February 26, 2022, February 27, 2021 and February 29, 2020, (iii) the Consolidated Statements of Comprehensive Earnings for the three years February 26, 2022, February 27, 2021 and February 29, 2020, (iv) the Consolidated Statements of Cash Flows for the three years ended February 26, 2022, February 27, 2021 and February 29, 2020, (v) the Consolidated Statements of Shareholders' Equity for the three years ended February 26, 2022, February 27, 2021 and February 29, 2020 and (vi) the Notes to Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

ITEM 16. FORM 10-K SUMMARY

None.

63

---

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 22, 2022.

APOGEE ENTERPRISES, INC.
/s/ Ty R. Silberhorn
Ty R. Silberhorn
Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on April 22, 2022.

Signature

Title

Signature

Title

/s/ Ty R. Silberhorn

Chief Executive Officer and

/s/ Nisheet Gupta

Executive Vice President and

Ty R. Silberhorn

Director (Principal Executive Officer)

Nisheet Gupta

Chief Financial Officer (Principal Financial and Accounting Officer)

/s/ Donald A. Nolan

/s/ Elizabeth M. Lilly

Donald A. Nolan

Chairman

Elizabeth M. Lilly

Director

/s/ Christina M. Alvord

/s/ Herbert K. Parker

Christina M. Alvord

Director

Herbert K. Parker

Director

/s/ Frank G. Heard

/s/ Mark A. Pompa

Frank G. Heard

Director

Mark A. Pompa

Director

/s/ Lloyd E. Johnson

/s/ Patricia K. Wagner

Lloyd E. Johnson

Director

Patricia K. Wagner

Director

64