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Goodwill and Other Identifiable Intangible Assets | 9 Months Ended
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Nov. 26, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Intangible Assets Goodwill Goodwill represents the excess of the cost over the value of 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 that the carrying value of goodwill may not be recoverable. At the beginning of the first quarter of fiscal 2023, we began management of the Sotawall and Harmon businesses under the Architectural Services segment in order to create a single, unified offering for larger custom curtainwall projects, which resulted in the combination of the Sotawall and Harmon reporting units into a single reporting unit. We evaluated goodwill on a qualitative basis prior to and subsequent to this change for these reporting units and concluded that no adjustment to the carrying value of goodwill was necessary. Concurrent with the move of Sotawall from the Architectural Framing Systems segment to the Architectural Services segment effective at the start of our first quarter of fiscal 2023, goodwill was reallocated to the affected reporting units within each segment, using a relative fair value approach as outlined in ASC 350, Intangibles - Goodwill and Other. In addition, for all reporting units, no qualitative indicators of impairment were identified during the first quarter of fiscal 2023, and therefore, no interim quantitative goodwill impairment evaluation was performed. The following table presents the carrying amount of goodwill attributable to each reporting segment including the amount of goodwill that was reallocated from the Architectural Framing Systems segment to the Architectural Services segment using the relative fair value approach during the first quarter of fiscal 2023:
(In thousands) |  | Architectural Framing Systems |  | Architectural Services |  | Architectural Glass |  | Large-Scale Optical |  | Total
Balance at February 27, 2021 |  | $ | 93,099 |  |  | $ | 1,120 |  |  | $ | 25,322 |  |  | $ | 10,557 |  |  | $ | 130,098 |
Foreign currency translation |  | 82 |  |  | — |  |  | (78) |  |  | — |  |  | 4 |
Balance at February 26, 2022 |  | 93,181 |  |  | 1,120 |  |  | 25,244 |  |  | 10,557 |  |  | 130,102 |
Reallocation among reporting units (1) |  | (2,048) |  |  | 2,048 |  |  | — |  |  | — |  |  | — |
Foreign currency translation |  | (763) |  |  | (105) |  |  | 34 |  |  | — |  |  | (834) |
Balance at November 26, 2022 |  | $ | 90,370 |  |  | $ | 3,063 |  |  | $ | 25,278 |  |  | $ | 10,557 |  |  | $ | 129,268 |
(1) Represents the reallocation of goodwill as a result of transitioning Sotawall from the Architectural Framing Systems segment to the Architectural Services segment as of the start of the first quarter of fiscal 2023.
Other intangible assets 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 the impairment analysis performed in the fourth quarter of fiscal 2022, the fair value of each of our trade names and trademarks exceeded the carrying amount. However, due to triggering events identified in the fourth quarter of fiscal 2022, resulting from the finalization of our plans for integrating the Sotawall business into the Architectural Services segment, beginning in fiscal 2023, we determined that the carrying value of the Sotawall trade name exceeded fair value by $12.7 million. We determined that Sotawall had an immaterial fair value, resulting in the trade name being fully impaired as of fiscal 2022 year-end. We recognized this amount 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 identified during the fourth quarter of fiscal 2022, 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 of Sotawall were impaired as of February 26, 2022. As such, we recognized a long-lived asset impairment charge of $36.7 million in finite-lived intangible assets 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
November 26, 2022 |  |  |  |  |  |  |  |  |  |
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 89,495 |  |  | $ | (48,843) |  |  | $ | — |  |  | $ | (2,077) |  |  | $ | 38,575 |
Other intangibles |  | 39,449 |  |  | (35,300) |  |  | — |  |  | (815) |  |  | 3,334 |
Total |  | 128,944 |  |  | (84,143) |  |  | — |  |  | (2,892) |  |  | 41,909 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Trademarks |  | 27,129 |  |  | — |  |  | — |  |  | (213) |  |  | 26,916 |
Total intangible assets |  | $ | 156,073 |  |  | $ | (84,143) |  |  | $ | — |  |  | $ | (3,105) |  |  | $ | 68,825 |
February 26, 2022 |  |  |  |  |  |  |  |  |  |
Definite-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 |  | 164,799 |  |  | (82,839) |  |  | (36,735) |  |  | 127 |  |  | 45,352 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Trademarks |  | 39,832 |  |  | — |  |  | (12,738) |  |  | 35 |  |  | 27,129 |
Total intangible assets |  | $ | 204,631 |  |  | $ | (82,839) |  |  | $ | (49,473) |  |  | $ | 162 |  |  | $ | 72,481 |
Amortization expense on definite-lived intangible assets was $3.1 million and $5.9 million for the nine-month periods ended November 26, 2022 and November 27, 2021, respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At November 26, 2022, the estimated future amortization expense for definite-lived intangible assets was:
(In thousands) |  | Remainder of 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027
Estimated amortization expense |  | $ | 1,136 |  |  | $ | 4,393 |  |  | $ | 4,363 |  |  | $ | 4,346 |  |  | $ | 4,292 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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