XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.23.2

Goodwill and Other Identifiable Intangible Assets | 3 Months Ended
--- | ---
May 27, 2023
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. During the first quarter of fiscal 2024, we did not identify any qualitative indicators of impairment at any of our reporting units, 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 26, 2022 |  | $ | 93,181 |  |  | $ | 1,120 |  |  | $ | 25,244 |  |  | $ | 10,557 |  |  | $ | 130,102 |
Reallocation among reporting units (1) |  | (2,048) |  |  | 2,048 |  |  | — |  |  | — |  |  | — |
Foreign currency translation |  | (996) |  |  | (137) |  |  | 57 |  |  | — |  |  | (1,076) |
Balance at February 25, 2023 |  | 90,137 |  |  | 3,031 |  |  | 25,301 |  |  | 10,557 |  |  | 129,026 |
Foreign currency translation |  | (18) |  |  | (2) |  |  | 48 |  |  | — |  |  | 28 |
Balance at May 27, 2023 |  | $ | 90,119 |  |  | $ | 3,029 |  |  | $ | 25,349 |  |  | $ | 10,557 |  |  | $ | 129,054 |
(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. During the first quarter of fiscal 2024, we did not identify any qualitative indicators of impairment at any of our reporting units, and therefore, no interim quantitative goodwill impairment evaluation was performed. 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. The gross carrying amount of other intangible assets and related accumulated amortization was:
(In thousands) |  | Gross Carrying Amount |  | Accumulated Amortization |  |  |  | Foreign Currency Translation |  | Net
May 27, 2023 |  |  |  |  |  |  |  |  |  |
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 86,798 |  |  | $ | (50,319) |  |  |  |  | $ | 19 |  |  | $ | 36,498 |
Other intangibles |  | 38,360 |  |  | (35,409) |  |  |  |  | 13 |  |  | 2,964 |
Total |  | 125,158 |  |  | (85,728) |  |  |  |  | 32 |  |  | 39,462 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Trademarks |  | 26,851 |  |  | — |  |  |  |  | (5) |  |  | 26,846 |
Total intangible assets |  | $ | 152,009 |  |  | $ | (85,728) |  |  |  |  | $ | 27 |  |  | $ | 66,308 |
February 25, 2023 |  |  |  |  |  |  |  |  |  |
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 89,495 |  |  | $ | (49,404) |  |  |  |  | $ | (2,697) |  |  | $ | 37,394 |
Other intangibles |  | 39,404 |  |  | (35,229) |  |  |  |  | (1,045) |  |  | 3,130 |
Total |  | 128,899 |  |  | (84,633) |  |  |  |  | (3,742) |  |  | 40,524 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |
Trademarks |  | 27,129 |  |  | — |  |  |  |  | (278) |  |  | 26,851 |
Total intangible assets |  | $ | 156,028 |  |  | $ | (84,633) |  |  |  |  | $ | (4,020) |  |  | $ | 67,375 |
Amortization expense on definite-lived intangible assets was $1.0 million and $4.2 million for the three-month periods ended May 27, 2023 and May 28, 2022, respectively. Amortization expense of other identifiable intangible assets is included in selling, general and administrative expenses. At May 27, 2023, the estimated future amortization expense for definite-lived intangible assets was:
(In thousands) |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028
Estimated amortization expense |  | $ | 3,195 |  |  | $ | 4,239 |  |  | $ | 4,223 |  |  | $ | 4,392 |  |  | $ | 3,892 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration