Apogee Enterprises, Inc. Annual Report 2022

← All annual reports

FY2022 Annual Report · Apogee Enterprises, Inc.

Loading PDF…

Apogee Enterprises, Inc.
Fiscal 2022 Annual Report

“We aim to create peak value for all our stakeholders,

by building differentiated businesses with strong

operational execution.”

Ty R. Silberhorn, Chief Executive Officer

Fellow shareholders,

It is my privilege to write to you about our company’s
progress after my first full year as Apogee’s Chief Executive
Officer. During fiscal 2022, we took important steps to set
Apogee on a path for long-term profitable growth and
improved returns. We conducted a deep strategic review of
our business and developed a roadmap for moving the
company forward. We launched several critical initiatives to
transform our enterprise and we delivered results that
exceeded our
forecasts, despite significant economic
challenges during the year. I would like to thank Apogee’s
entire team for their tremendous effort during the year.

A New Strategic Direction
Throughout Apogee’s 70-plus years, the company has
frequently reinvented itself, innovating our business model
to adapt to changing market conditions. Over the past two
years, with the impact of the pandemic and subsequent
downturn in non-residential construction, we reached
another inflection point in the company’s history. We spent
much of the last year conducting a thorough strategic review
of our business. We took a systematic, outside-in approach,
which included extensive input from customers and detailed
competitive benchmarking. This was a rigorous process, in
which we analyzed all aspects of our business and the
markets we serve. We evaluated our entire portfolio of
products, services, and capabilities, to identify the best
avenues for future growth. We also reviewed how we
compete, to ensure we have the right operating model to
deliver consistent, profitable growth. Through this work, we
validated strengths to leverage as we move forward, and we
defined clear actions for key issues facing the company.

The outcome of this work was a new, three-pillar strategy.
First, we will strive to become the economic leader in our
target markets. Our goal is to develop clear go-to-market
strategies, with differentiated product and service offerings,
and competitive cost structures. Over time, this will allow us
to become a top margin generator in the markets we serve.
Second, we will actively manage our portfolio, to drive

higher margins and returns. We will accomplish this by
scaling and expanding our top performing businesses,
actively addressing underperforming parts of the portfolio,
and investing to add and grow differentiated offerings.
Finally, we will strengthen our core operating capabilities
and platforms. The foundation of this is developing an
operating model that will deliver more efficient operations,
greater scalability, and enable sustained profitable growth.

To measure our progress as we execute this strategy, we
have established three-year performance targets for our
business. Our key performance metric going forward will be
return on invested capital (ROIC), which we believe will
ensure that we deliver above market returns for our
shareholders. Our goal is to achieve greater than 12 percent
ROIC by the end of fiscal year 2025. We expect our ROIC
gains will primarily be driven by margin improvements
across our business. Accordingly, we set the target of
achieving greater than 10 percent operating margin by fiscal
2025. Third, we aspire to outgrow our overall market, with
the goal of revenue growth 1.2 times that of the non-
residential construction market. Achieving these targets will
represent a step-change in our financial performance.

Following the strategic review, our ambition is clear. We aim
to create peak value for all our stakeholders, by building
differentiated businesses with strong operational execution.

Executing Our Strategic Pivot
As fiscal year 2022 progressed, we began to execute our new
strategy, building early momentum in our transformation.
We completed a strategic realignment and restructuring to

better position our businesses to become economic leaders
in their target markets. This included refocusing the
Architectural Glass segment to emphasize premium, high-
performance products. In support of this strategy, we sold
our glass fabrication facility in Statesboro, Georgia and
successfully transitioned glass operations to our flagship
facility in Minnesota. We did this while maintaining high
levels of service for our customers. In Architectural Framing
Systems, we moved
from what had been several
decentralized business units, to a more integrated model
that better leverages the scale and capabilities of the
combined organization. This change will bring more clarity
to how we serve customers and will enable improved
execution and reduced costs.

During the year, we also took actions to strengthen our core
operating capabilities. We made significant progress on
several enterprise transformation initiatives. These projects
are designed to strengthen our processes and systems,
providing new capabilities across several functional areas.
Over time, we plan to establish functional centers of
excellence that will allow us to support the business more
efficiently and provide the ability to flex and scale as our
company grows. Another key initiative was reinvigorating
our Lean and Continuous Improvement program. This effort
is already delivering bottom-line results. As we move
forward, Lean will form the foundation of the Apogee
Management System, a common operating approach, with
shared tools and processes, that is embedded in the culture
of the company. As we enter the new fiscal year, we are well
positioned to continue our strategic shift, positioning the
company for improved performance in the years ahead.

Fiscal 2022 Results
Throughout fiscal 2022, we faced a challenging operating
environment, with significant cost inflation, supply chain
disruptions, and lingering impacts of the pandemic. Despite
these challenges, our team delivered solid
financial
performance. Total revenue grew 7 percent, to $1.3 billion,
led by strong growth in Architectural Services, which
achieved record full-year sales and operating income.
Large-Scale Optical (LSO) also had a strong year, rebounding
from the effects of the pandemic. LSO achieved record
revenue, exceeding $100 million of annual sales for the first
time, while also returning to the segment’s normal level of
strong profitability. Architectural Framing Systems saw the
most impact from inflation and supply chain challenges, yet
still delivered 5 percent sales growth and
improved
operating margins. Architectural Glass had lower sales, due
to the market downturn and our move away from less

profitable projects. Even with the lower volumes, the Glass
segment made steady progress improving its cost structure
and driving productivity gains throughout the year.

We continued to have success with working capital
management and had another year of strong cash flow. We
used this cash flow to drive shareholder value, increasing our
dividend for the ninth consecutive year, and repurchasing
$100 million worth of stock. In total, we returned $121
million of cash to our shareholders during the year. Our
balance sheet and liquidity remain very strong. We have no
significant debt maturities until fiscal 2025 and we have no
outstanding borrowings on our primary revolving credit
facility. Even with the increased dividend and share
repurchases, we ended the fiscal year with lower total debt
and $36 million of cash on our balance sheet. This strong
financial position gives the company significant flexibility as
we execute our strategy in the coming years.

Looking Ahead
As we move into the new fiscal year, we expect to continue
our strategic pivot, driving progress toward our three-year
financial goals. The economic challenges we faced in fiscal
2022 will likely persist. Pricing, cost management and
driving productivity gains will remain top focus areas for our
team. We expect to drive margin gains in fiscal 2023, largely
driven by capturing the benefits from the restructuring and
cost reduction actions we completed this year. We will also
continue to focus on working capital management and cash
flow, while deploying capital to drive value. We plan to
invest in high-return capital spending projects, continue to
grow our dividend, opportunistically repurchase stock, and
evaluate strategic acquisitions. With our strong cash flow,
we can do all of this while maintaining a conservative
balance sheet.

I am proud of what the Apogee team accomplished in fiscal
2022. My fellow Board members and I are confident in what
this team can continue to deliver in the years ahead as we
execute our new strategy. Thank you for your continued
trust and support of Apogee Enterprises!

Ty Silberhorn
Chief Executive Officer and President

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
(State or other jurisdiction of
incorporation or organization)

4400 West 78th Street

Suite 520 Minneapolis Minnesota

(Address of principal executive offices)

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

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

41-0919654
(I.R.S. Employer
Identification No.)

55435
(Zip Code)

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

Non-accelerated Filer
Emerging Growth Company

☒

☐
☐

Accelerated Filer

Smaller Reporting 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.

Page

APOGEE ENTERPRISES, INC.
Annual Report on Form 10-K
For the fiscal year ended February 26, 2022

TABLE OF CONTENTS

PART I

PART II

Item 1.

Business

Item 1A.

Risk Factors

Item 1B. Unresolved Staff Comments

Properties

Legal Proceedings

Mine Safety Disclosures

Item 2.

Item 3.

Item 4.

Item 5.

Item 6.

Item 7.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Reserved

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Item 8.

Item 9.

Financial Statements and Supplementary Data

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A.

Controls and Procedures

Item 9B. Other Information
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

PART III

Item 10.

Directors, Executive Officers, Code of Ethics and Corporate Governance

Item 11.

Executive and Director Compensation

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13.

Certain Relationships and Related Transactions, and Director Independence

Item 14.

Principal Accountant Fees and Services

PART IV

Item 15.

Exhibits and Financial Statement Schedules

Item 16.

Form 10-K Summary

Signatures

ITEM 1. BUSINESS

PART I

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.

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:

•

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.

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.

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.

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Name
Ty R. Silberhorn

Curtis Dobler

Meghan M. Elliott

Nisheet Gupta

Gary R. Johnson

Brent C. Jewell

Troy R. Johnson

Nick C. Longman

Age Positions with Apogee Enterprises and Past Experience
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.
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.
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.
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.
Senior Vice President of the Company since 2018, Treasurer and Vice President since 2001 and an
employee of the Company since 1995.
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.
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.
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.

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:

•
•

•

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

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

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.

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
Stratford, WI
Reed City, MI
Walker, MI
Dallas, TX
Toronto, ON Canada
Brampton, ON Canada
Monett, MO
Architectural Glass segment
Owatonna, MN
Nazaré Paulista, Brazil
Architectural Services segment
Minneapolis, MN
West Chester, OH
Mesquite, TX
Glen Burnie, MD
Orlando, FL
LSO segment
McCook, IL
Faribault, MN
Other
Minneapolis, MN
(1)

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

Owned
Owned
Owned
Leased
Leased
Leased
Leased
Owned

Manufacturing/Administrative
Manufacturing
Manufacturing
Manufacturing/Administrative
Manufacturing
Manufacturing/Warehouse/Administrative
Manufacturing/Warehouse/Administrative
Manufacturing/Warehouse/Administrative

Owned
Owned(1)

Manufacturing/Administrative
Manufacturing/Administrative

Leased
Leased
Leased
Leased
Leased

Leased
Owned

Administrative
Manufacturing
Manufacturing
Manufacturing
Manufacturing

Manufacturing/Warehouse/Administrative
Manufacturing/Administrative

Leased

Administrative

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.

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
2022
2021
2020

First

Second

Third

Fourth

Total

0.2000 $
0.1875
0.1750

0.2200 $
0.2000
0.1875

0.8200
0.7625
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
November 28, 2021 through December 24, 2021
December 25, 2021 through January 22, 2022
January 23, 2022 through February 26, 2022
Total

Total Number of
Shares Purchased
(a)

Average Price
Paid per Share

238,938 $
677,804
623,565
1,540,307 $

43.76
48.58
45.02
45.92

Total Number of
Shares Purchased
as Part of
Publicly
Announced Plans
or Programs (b)
237,872
676,025
623,565
1,537,462

Maximum
Number of
Shares that May
Yet Be Purchased
under the Plans
or Programs (b)
1,124,128
2,448,103
1,824,538
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.

Apogee
S&P Small Cap 600 Growth Index
Russell 2000 Index

100.00 $
100.00
100.00

76.44 $
112.36
111.31

63.62 $
120.65
116.96

54.34 $
112.72
110.20

69.37 $

165.53
166.40

86.10
162.88
155.92

2017

2018

2019

2020

2021

2022

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.

Fiscal YearIndex ValueComparative Stock PerformanceFive-Year Cumulative Total ReturnMarch 4, 2017 to February 26, 2022ApogeeS&P Small Cap 600Russell 2000201720182019202020212022406080100120140160180200

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)

(In thousands)
Operating income
Impairment expense on intangible assets and goodwill
Restructuring
Gain on sale of building
Impairment of equity investment
COVID-19
Post-acquisition and acquired project matters
Income tax impact on above adjustments (1)
Adjusted operating income

Year-ended

Diluted per share amounts
Year-ended

February 26,
2022

February 27,
2021

February 26,
2022

February 27,
2021

22,045 $
49,473
30,512
(19,456)
N/A
—
—
N/A
82,574 $

25,527 $
70,069
4,884
(19,346)

N/A

4,988
1,000

N/A
87,122 $

0.14 $
1.96
1.21
(0.77)
0.12
—
—
(0.17)
2.48 $

0.59
2.66
0.19
(0.74)
—
0.19
0.04
(0.53)
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.

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)

Net sales

2022

2021

2020

2022 vs. 2021

2021 vs. 2020

$ 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)
Net sales
Cost of sales
Gross margin
Selling, general and administrative expenses
Impairment expense on intangible assets and goodwill
Operating income
Interest expense, net
Other (expense) income, net
Earnings before income taxes
Income tax expense
Net earnings
Effective income tax rate

2022
100.0 %
79.1
20.9
15.4
3.8
1.7
0.3
(0.3)
1.1
0.8
0.3 %
74.9 %

2021
100.0 %
77.6
22.4
14.6
5.7
2.1
0.4
0.1
1.8
0.6
1.3 %
31.7 %

2020
100.0 %
77.0
23.0
16.7
—
6.3
0.7
0.1
5.7
1.3
4.5 %
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

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)
Net sales
Operating loss
Operating margin

2022
$ 596,608
(16,726)

2021
$ 570,850
(44,761)

2020
$ 686,596
36,110

2022 vs. 2021
4.5 %
(62.6) %

2021 vs. 2020
(16.9) %
N/M

(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.

Architectural Glass

(In thousands)
Net sales
Operating income
Operating margin

2022
$ 309,241
1,785

2021
$ 330,256
18,678

2020
$ 387,191
20,760

2022 vs. 2021
(6.4) %
(90.4) %

2021 vs. 2020
(14.7) %
(10.0) %

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)
Net sales
Operating income
Operating margin

2022
$ 349,386
32,743

2021
$ 295,807
31,182

2020
$ 269,140
23,582

2022 vs. 2021
18.1 %
5.0 %

2021 vs. 2020
9.9 %
32.2 %

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)
Net sales
Operating income
Operating margin

2022
$ 101,673
23,618

2021
$ 70,050
31,203

2020
$ 87,911
22,642

2022 vs. 2021
45.1 %
(24.3) %

2021 vs. 2020
(20.3) %
37.8 %

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.

Liquidity and Capital Resources

(In thousands)
Operating Activities

2022

2021

2020

Net cash provided by operating activities

$ 100,471 $ 141,863 $ 107,262

Investing Activities

Capital expenditures
Proceeds on sale of property

Financing Activities

Payments on line of credit, net
(Repayment) borrowings on debt
Repurchase and retirement of common stock
Dividends paid

(21,841)
30,599

(26,165)
25,108

(51,428)
5,307

—
(2,000)
(100,414)
(20,266)

(47,739) (177,500)
(5,400) 150,000
(25,140)
(32,878)
(18,714)
(19,601)

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:

(In thousands)
Debt obligations
Operating leases (undiscounted)
Purchase obligations

Total cash obligations

2023

1,000 $
13,604
199,918
$ 214,522 $

2024

2025
— $ 150,000 $

11,311
5,976
17,287 $ 161,383 $

9,950
1,433

2026

2027

Thereafter

Total

— $

7,929
1,433
9,362 $

— $

6,423
487
6,910 $

12,000 $ 163,000
55,952
6,735
209,247
—
18,735 $ 428,199

Payments Due by Fiscal Period

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.

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.

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

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

$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.

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.

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.

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.

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

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.

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

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)
Assets
Current assets

Cash and cash equivalents
Receivables, net of allowance for doubtful accounts
Inventories
Costs and earnings on contracts in excess of billings
Other current assets

Total current assets

Property, plant and equipment, net
Operating lease right-of-use assets
Goodwill
Intangible assets
Other non-current assets

Total assets

Liabilities and Shareholders’ Equity
Current liabilities

Accounts payable
Accrued payroll and related benefits
Billings in excess of costs and earnings on uncompleted contracts
Operating lease liabilities
Current portion long-term debt
Other current liabilities

Total current liabilities

Long-term debt
Non-current operating lease liabilities
Non-current self-insurance reserves
Other non-current liabilities
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
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss

Total shareholders’ equity
Total liabilities and shareholders’ equity

February 26, 2022

February 27, 2021

37,583 $
168,592
80,494
30,403
20,820
337,892
249,995
47,912
130,102
72,481
49,481
887,863 $

92,104 $
50,977
8,659
12,744
1,000
67,462
232,946
162,000
39,591
22,544
44,583

7,901
149,713
254,825
(26,240)
386,199
887,863 $

47,277
175,917
72,823
29,497
25,160
350,674
298,443
58,864
130,098
130,053
46,967
1,015,099

76,204
50,125
22,789
13,251
2,000
53,183
217,552
163,000
48,439
24,880
68,483

8,571
154,958
357,243
(28,027)
492,745
1,015,099

See accompanying notes to consolidated financial statements.

CONSOLIDATED RESULTS OF OPERATIONS

(In thousands, except per share data)
Net sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Impairment expense on goodwill and intangible assets

Operating income

Interest expense, net

Other (expense) income, net

Earnings before income taxes

Income tax expense

Net earnings

Earnings per share - basic

Earnings per share - diluted

Weighted average basic shares outstanding

Weighted average diluted shares outstanding

February 26, 2022

Year-Ended
February 27, 2021

February 29, 2020

1,313,977 $

1,230,774 $

1,039,816

274,161

202,643

49,473

22,045

3,767

(4,409)

13,869

10,383

955,084

275,690

180,094

70,069

25,527

4,408

1,492

22,611

7,175

3,486 $

15,436 $

0.14 $

24,920

25,292

0.59 $

25,955

26,304

1,387,439

1,068,480

318,959

231,111

—

87,848

8,814

716

79,750

17,836

61,914

2.34

2.32

26,474

26,729

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(In thousands)
Net earnings
Other comprehensive earnings (loss):

February 26, 2022
$

3,486 $

15,436 $

February 29, 2020
61,914

Year-Ended
February 27, 2021

Unrealized (loss) gain on marketable securities, net of

$(96), $22 and $67 of tax (benefit) expense, respectively

Unrealized gain (loss) on foreign currency hedge, net of
$633, $450 and $(129) of tax expense (benefit),
respectively
Unrealized gain (loss) on pension obligation, net of $117,
$32 and $(124) of tax expense (benefit), respectively
Foreign currency translation adjustments

Other comprehensive earnings (loss)
Total comprehensive earnings

(360)

257

2,074

1,475

382
(309)
1,787
5,273 $

105
4,375
6,035
21,471 $

(423)

(405)
(1,364)
(1,935)
59,979

See accompanying notes to consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)
Operating Activities
Net earnings
Adjustments to reconcile net earnings to net cash provided by
operating activities:

Depreciation and amortization
Share-based compensation
Deferred income taxes
Asset impairment on property, plant and equipment
Gain on disposal of assets
Impairment expense on goodwill and intangible assets
Noncash lease expense
Other, net

Changes in operating assets and liabilities:

Receivables
Inventories
Costs and earnings on contracts in excess of billings
Accounts payable and accrued expenses
Billings in excess of costs and earnings on uncompleted
contracts
Refundable and accrued income taxes
Operating lease liability
Other, net

Net cash provided by operating activities

Investing Activities
Capital expenditures
Proceeds from sales of property, plant and equipment
Purchases of marketable securities
Sales/maturities of marketable securities
Other, net

Net cash provided (used) by investing activities

Financing Activities
Borrowings on line of credit
(Repayment) borrowings on debt
Payments on line of credit
Proceeds from exercise of stock options
Repurchase and retirement of common stock
Dividends paid
Other, net

Net cash used by financing activities

(Decrease) increase in cash, cash equivalents and restricted
cash
Effect of exchange rates on cash
Cash, cash equivalents and restricted cash at beginning of year
Cash, cash equivalents and restricted cash at end of year
Noncash Activity
Capital expenditures in accounts payable

See accompanying notes to consolidated financial statements.

February 26, 2022

Year-Ended
February 27, 2021

February 29, 2020

3,486 $

15,436 $

61,914

49,993
6,293
(7,956)
21,497
(20,987)
49,473
12,418
(1,272)

7,521
(7,706)
(897)
3,348

(14,288)
11,017
(12,720)
1,251
100,471

(21,841)
30,599
(1,038)
1,563
—
9,283

—
(2,000)
—
4,115
(100,414)
(20,266)
(2,007)
(120,572)

(10,818)
1,124
47,277
37,583 $

51,440
8,573
(6,460)
1,400
(20,044)
70,069
12,235
(2,088)

21,630
(1,440)
44,183
(32,591)

(10,351)
2,652
(11,513)
(1,268)

141,863

(26,165)
25,108
(3,606)
2,657
(141)
(2,147)

198,601

(5,400)
(246,340)
1,456
(32,878)
(19,601)
(3,714)
(107,876)

31,840
485
14,952
47,277 $

46,795
6,607
10,463
—
(2,197)
—
12,420
(1,516)

(4,217)
7,142
(18,468)
(375)

11,314
(8,726)
(10,829)
(3,065)
107,262

(51,428)
5,307
(7,012)
7,768
(1,673)
(47,038)

229,000
150,000
(406,500)
—
(25,140)
(18,714)
(3,160)
(74,514)

(14,290)
1
29,241
14,952

2,326 $

1,101 $

2,169

l
a
t
o
T

'
s
r
e
d
l
o
h
e
r
a
h
S

y
t
i
u
q
E

d
e
t
a
l
u
m
u
c
c
A

r
e
h
t
O

e
v
i
s
n
e
h
e
r
p
m
o
C

e
m
o
c
n
I

)
s
s
o
L

(

d
e
r
r
e
f
e
D

n
o
i
t
a
s
n
e
p
m
o
C

n
o
i
t
a
g
i
l
b
O

k
c
o
t
S
n
o
m
m
o
C

t
s
u
r
T
n
i
d
l
e
H

d
e
n

i
a
t
e
R

s
g
n
n
r
a
E

l
a
n
o
i
t
i
d
d
A

n
o
m
m
o
C

s
e
r
a
h
S

l
a
t
i
p
a
C
n
I
-
d

i
a
P

k
c
o
t
S
n
o
m
m
o
C

g
n
d
n
a
t
s
t
u
O

)
a
t
a
d
e
r
a
h
s

r
e
p

t
p
e
c
x
e

,
s
d
n
a
s
u
o
h
t

n
I
(

y
t
i
u
q
E

'
s
r
e
d
l
o
h
e
r
a
h
S
f
o

s
t
n
e
m
e
t
a
t
S
d
e
t
a
d
i
l
o
s
n
o
C

7
5
2

7
1
3
,
6
9
4

4
1
9
,
1
6

)
3
2
4
(

)
5
0
4
(

)
4
6
3
,
1
(

8
5
1

7
0
6
,
6

)
0
4
1
,
5
2
(

)
9
2
4
,
2
(

)
4
1
7
,
8
1
(

8
7
7
,
6
1
5

6
3
4
,
5
1

0
8

5
0
1

5
7
4
,
1

5
7
3
,
4

7
0
1

3
7
5
,
8

6
5
4
,
1

)
8
7
8
,
2
3
(

)
1
6
1
,
3
(

)
1
0
6
,
9
1
(

)
7
2
1
,
2
3
(

5
5
7

)
5
5
7
(

7
9
5

7
6
3

2
4
8

1
5
1

5
0
0

5
1
0

7
2

—

7
5
2

)
3
2
4
(

)
5
0
4
(

)
4
6
3
,
1
(

—

)
0
7
(

—

0
7

—

5
2
2

—

4
1
9
1
6

)
8
4
9

0
2
(

)
4
6
0
2
(

)
4
1
7
8
1
(

—

)
4
2
1
(

7
0
6
6

)
3
6
9
3
(

)
6
4
3
(

—

7
5

—

)
9
2
2
(

)
9
1
(

—

4
7
1

—

)
7
8
6
(

)
9
5
(

—

)
2
6
0
,
4
3
(

5
8
6

)
5
8
6
(

0
1
0

8
8
3

6
1
0

4
5
1

4
1
8

3
4
4

6
2

—

0
8

5
0
1

5
7
4
,
1

5
7
3
,
4

—

)
9
9
4
(

—

9
9
4

—

6
3
4
5
1

—

4
7
1

)
1
4
3

5
2
(

)
5
3
4
2
(

)
1
0
6
9
1
(

—

)
2
1
2
1
(

3
7
5
8

4
1
4

)
4
4
1
7
(

)
9
8
6
(

—

5
4
1

—

2
4

)
3
9
3
(

)
7
3
(

—

2
3
4

—

7
2
1

)
1
1
1
(

—

)
7
7
1
1
(

5
4
7
,
2
9
4

)
7
2
0
,
8
2
(

6
8
1

)
6
8
1
(

3
4
2

7
5
3

8
5
9

4
5
1

1
7
5

4
1
7

5
2

)
0
6
3
(

6
8
4
,
3

2
8
3

)
9
0
3
(

8
8

4
7
0
,
2

3
9
2
,
6

5
1
1
,
4

)
4
1
4
,
0
0
1
(

)
5
3
6
,
1
(

)
6
6
2
,
0
2
(

9
9
1
,
6
8
3

—

)
0
6
3
(

2
8
3

)
9
0
3
(

4
7
0
,
2

—

2
1

—

)
2
1
(

—

1
2
2

—

6
8
4
3

)
0
9
5

4
8
(

)
9
6
2
1
(

)
6
6
2
0
2
(

—

)
0
9
1
(

3
9
2
6

5
5
0

)
8
4
3
(

—

)
5
5
0
5
1
(

—

7
5

—

0
6

)
9
6
7
(

)
8
1
(

—

2
7
1

—

9
7
1

)
5
5
(

—

)
9
0
3
2
(

)
0
4
2
,
6
2
(

8
9
1

)
8
9
1
(

5
2
8

4
5
2

3
1
7

9
4
1

1
0
9

1
0
7

3
2

e
s
n
e
p
x
e

x
a
t

7
6
$
f
o

t
e
n

,
s
e
i
t
i
r
u
c
e
s

e
l
b
a
t
e
k
r
a
m
n
o
n
i
a
g
d
e
z
i
l
a
e
r
n
U

x
a
t

9
2
1
$
f
o

t
e
n

,
e
g
d
e
h
y
c
n
e
r
r
u
c

n
g
i
e
r
o
f

n
o

s
s
o
l

d
e
z
i
l
a
e
r
n
U

t
i
f
e
n
e
b

x
a
t

4
2
1
$
f
o

t
e
n

,
n
o
i
t
a
g
i
l
b
o

n
o
i
s
n
e
p

n
o

s
s
o
l

d
e
z
i
l
a
e
r
n
U

9
1
0
2

,
2
h
c
r
a
M

t
a
e
c
n
a
l
a
B

s
g
n
i
n
r
a
e

t
e
N

s
t
n
e
m
t
s
u
j
d
a

n
o
i
t
a
l
s
n
a
r
t

y
c
n
e
r
r
u
c

n
g
i
e
r
o
F

s
n
o
i
t
a
l
l
e
c
n
a
c

f
o

t
e
n
,
k
c
o
t
s

f
o

e
c
n
a
u
s
s
I

)
e
r
a
h
s

r
e
p

5
2
1
7
.
0
$
(

s
d
n
e
d
i
v
i
d
h
s
a
C

0
2
0
2

,
9
2

y
r
a
u
r
b
e
F
t
a
e
c
n
a
l
a
B

s
g
n
i
n
r
a
e

t
e
N

n
o
i
t
a
s
n
e
p
m
o
c

d
e
s
a
b
-
e
r
a
h
S

s
t
n
e
m
e
r
i
t
e
r

e
r
a
h
s

r
e
h
t
O

s
e
s
a
h
c
r
u
p
e
r

e
r
a
h
S

e
s
n
e
p
x
e

x
a
t

2
2
$
f
o

t
e
n

,
s
e
i
t
i
r
u
c
e
s

e
l
b
a
t
e
k
r
a
m
n
o
n
i
a
g
d
e
z
i
l
a
e
r
n
U

x
a
t

0
5
4
$
f
o

t
e
n

,
e
g
d
e
h
y
c
n
e
r
r
u
c

n
g
i
e
r
o
f

n
o
n
i
a
g
d
e
z
i
l
a
e
r
n
U

e
s
n
e
p
x
e

x
a
t

2
3
$
f
o

t
e
n

,
n
o
i
t
a
g
i
l
b
o
n
o
i
s
n
e
p

n
o
n
i
a
g
d
e
z
i
l
a
e
r
n
U

s
t
n
e
m
t
s
u
j
d
a

n
o
i
t
a
l
s
n
a
r
t

y
c
n
e
r
r
u
c

n
g
i
e
r
o
F

s
n
o
i
t
a
l
l
e
c
n
a
c

f
o

t
e
n
,
k
c
o
t
s

f
o

e
c
n
a
u
s
s
I

t
i
f
e
n
e
b

x
a
t

6
9
$
f
o

t
e
n

,
s
e
i
t
i
r
u
c
e
s

e
l
b
a
t
e
k
r
a
m
n
o

s
s
o
l

d
e
z
i
l
a
e
r
n
U

x
a
t

3
3
6
$
f
o

t
e
n

,
e
g
d
e
h
y
c
n
e
r
r
u
c

n
g
i
e
r
o
f

n
o
n
i
a
g
d
e
z
i
l
a
e
r
n
U

e
s
n
e
p
x
e

x
a
t

7
1
1
$
f
o

t
e
n

,
n
o
i
t
a
g
i
l
b
o
n
o
i
s
n
e
p

n
o
n
i
a
g
d
e
z
i
l
a
e
r
n
U

s
t
n
e
m
t
s
u
j
d
a

n
o
i
t
a
l
s
n
a
r
t

y
c
n
e
r
r
u
c

n
g
i
e
r
o
F

s
n
o
i
t
a
l
l
e
c
n
a
c

f
o

t
e
n
,
k
c
o
t
s

f
o

e
c
n
a
u
s
s
I

)
e
r
a
h
s

r
e
p

0
0
2
8
.
0
$
(

s
d
n
e
d
i
v
i
d
h
s
a
C

2
2
0
2

,
6
2

y
r
a
u
r
b
e
F
t
a
e
c
n
a
l
a
B

n
o
i
t
a
s
n
e
p
m
o
c

d
e
s
a
b
-
e
r
a
h
S

s
n
o
i
t
p
o
k
c
o
t
s

f
o

e
s
i
c
r
e
x
E

s
t
n
e
m
e
r
i
t
e
r

e
r
a
h
s

r
e
h
t
O

s
e
s
a
h
c
r
u
p
e
r

e
r
a
h
S

.
s
t
n
e
m
e
t
a
t
s

l
a
i
c
n
a
n
i
f

d
e
t
a
d
i
l
o
s
n
o
c

o
t

s
e
t
o
n

g
n
i
y
n
a
p
m
o
c
c
a

e
e
S

)
e
r
a
h
s

r
e
p

5
2
6
7
.
0
$
(

s
d
n
e
d
i
v
i
d
h
s
a
C

1
2
0
2

,
7
2

y
r
a
u
r
b
e
F
t
a
e
c
n
a
l
a
B

s
g
n
i
n
r
a
e

t
e
N

n
o
i
t
a
s
n
e
p
m
o
c

d
e
s
a
b
-
e
r
a
h
S

s
n
o
i
t
p
o
k
c
o
t
s

f
o

e
s
i
c
r
e
x
E

s
t
n
e
m
e
r
i
t
e
r

e
r
a
h
s

r
e
h
t
O

s
e
s
a
h
c
r
u
p
e
r

e
r
a
h
S

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.

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.

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.

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.

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.

• 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.

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)
Recognized at shipment
Recognized over time
Total

February 26, 2022
$

551,252 $
762,725
1,313,977 $

February 27, 2021

504,583 $
726,191
1,230,774 $

February 29, 2020
610,049
777,390
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)

Trade accounts

Construction contracts

Contract retainage

Total receivables

Less: allowance for credit losses

Receivables, net

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

(In thousands)

Beginning balance

Additions charged to costs and expenses

Deductions from allowance, net of recoveries

Other deductions

Ending balance

2022

2021

129,085 $

12,857

28,782

170,724

2,132

168,592 $

120,534

12,163

45,167

177,864

1,947

175,917

2022

2021

1,947 $

729

(514)

(30)

2,132 $

2,469

389

(887)

(24)

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)
Contract assets
Contract liabilities

February 26, 2022
$

59,185 $
11,373

February 27, 2021
74,664
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.

Other contract-related disclosures

(In thousands)

February 26, 2022

February 27, 2021

Revenue recognized related to contract liabilities from prior year-end

Revenue recognized related to prior satisfaction of performance obligations

19,747 $

22,461

16,341

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)
Within one year
Within two years
Beyond two years
Total

3. Supplemental Balance Sheet Information

Inventories

(In thousands)

Raw materials

Work-in-process

Finished goods

Total inventories

Other current liabilities

(In thousands)

Warranties

Accrued project losses

Income and other taxes

Accrued self-insurance reserves

Accrued freight

Other

Total other current liabilities

Other non-current liabilities

(In thousands)

February 26, 2022
518,213
$
213,531
58,080
789,824

2022

2021

42,541 $

18,144

19,809

80,494 $

36,681

18,932

17,210

72,823

2022

2021

11,786 $

12,298

15,770

8,796

2,078

28,939

67,462 $

4,572

7,459

6,482

1,477

20,895

53,183

2022

2021

Deferred benefit from New Markets Tax Credit transactions

9,165 $

Retirement plan obligations

Deferred compensation plan

Deferred tax liabilities

Deferred payroll taxes

Other
Total other non-current liabilities

7,041

9,483

2,296

—

16,598
44,583 $

15,717

7,730

13,507

8,310

6,789

16,430
68,483

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)
February 26, 2022
February 27, 2021

Amortized Cost

Gross Unrealized
Gains

Gross Unrealized
Losses

Estimated Fair
Value

11,862 $
12,517

45 $
386

123 $
10

11,784
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)
Due within one year

Due after one year through five years

Due after five years through 10 years

Due beyond 15 years

Total

Amortized Cost

Estimated Fair
Value

1,206 $

9,158

698

800

1,212

9,109

669

794

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.

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

(In thousands)
February 26, 2022
Assets:

Money market funds
Municipal and corporate bonds
Cash surrender value of life insurance
Aluminum hedging contract
Interest rate swap contract

Liabilities:

Deferred compensation
Foreign currency forward/option contract

February 27, 2021
Assets:

Money market funds
Municipal and corporate bonds
Cash surrender value of life insurance
Foreign currency forward/option contract
Aluminum hedging contract

Liabilities:

Deferred compensation
Interest rate swap contract

Quoted Prices in
Active Markets
(Level 1)

Other Observable
Inputs (Level 2)

Total Fair Value

19,288 $
—
—
—
—

—
—

26,034 $
—
—
—
—

—
—

— $

11,784
17,831
2,133
718

12,491
161

— $

12,893
18,632
606
363

13,507
504

19,288
11,784
17,831
2,133
718

12,491
161

26,034
12,893
18,632
606
363

13,507
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

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)

Land

Buildings and improvements

Machinery and equipment

Office equipment and furniture

Construction in progress

Total property, plant and equipment

Less: accumulated depreciation

Net property, plant and equipment

2022

2021

3,579 $

185,774

381,116

69,017

15,080

654,566

404,571

249,995 $

3,607

204,660

425,525

68,516

13,750

716,058

417,615

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:

Architectural
Framing
Systems

Architectural
Glass

Architectural
Services

Large-Scale
Optical

(In thousands)
Balance at February 29, 2020
148,183 $
Adjustment (1)
6,315
Impairment expense
(63,769)
Foreign currency translation
2,370
Balance at February 27, 2021
93,099
Foreign currency translation
82
Balance at February 26, 2022
93,181 $
(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.

10,557 $
—
—
—
10,557
—
10,557 $

1,120 $
—
—
—
1,120
—
1,120 $

25,656 $
—
—
(334)

Total
185,516
6,315
(63,769)
2,036
130,098
4
130,102

(78)
25,244 $

25,322

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)
February 26, 2022
Finite-lived intangible assets:

Customer relationships
Other intangibles
Total finite-lived intangible assets

Indefinite-lived intangible assets:
Trade names and trademarks
Total intangible assets

February 27, 2021
Finite-lived intangible assets:

Customer relationships
Other intangibles
Total finite-lived intangible assets

Indefinite-lived intangible assets:
Trade names and trademarks
Total intangible assets

Gross
Carrying
Amount

Accumulated
Amortization

Impairment
Expense

Foreign
Currency
Translation

Net

122,961 $
41,838
164,799

(47,226) $
(35,613)
(82,839)

(33,608) $
(3,127)
(36,735)

141 $
(14)
127

42,268
3,084
45,352

39,832
204,631 $

—
(82,839) $

(12,738)
(49,473) $

35
162 $

27,129
72,481

119,647 $
41,293
160,940

(40,443) $
(34,234)
(74,677)

— $
—
—

3,315 $
643
3,958

82,519
7,702
90,221

45,300
206,240 $

—
(74,677) $

(6,300)
(6,300) $

832
4,790 $

39,832
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)
Estimated amortization expense

2023

2024

2025

2026

2027

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.

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)

Maturities

2023

2024

2025

2026

2027

Thereafter

Total

1,000 $

— $ 150,000 $

— $

12,000 $ 163,000

(In thousands, except percentages)
Average daily borrowings during the year
Maximum borrowings outstanding during the year
Weighted average interest rate during the year

(In thousands)
Interest on debt
Other interest expense
Interest expense

2022
$ 167,542
168,669

2021
$ 187,397
235,232

1.45 %

1.89 %

February 26,
2022

February 27,
2021

February 29,
2020

3,695 $
866
4,561 $

4,981 $
604
5,585 $

8,891
326
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.

The components of lease expense were as follows:

(In thousands)
Operating lease cost
Short-term lease cost
Variable lease cost
Total lease cost

February 26, 2022
$

13,509 $
1,024
2,991
17,524 $

February 27, 2021
13,973
1,910
2,827
18,710

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

(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities
Lease assets obtained in exchange for new operating lease liabilities
Weighted-average remaining lease term - operating leases
Weighted-average discount rate - operating leases

February 26, 2022
14,301
$
3,259
$
5.3 years
2.9 %

February 27, 2021
13,952
$
23,772
$
6.0 years
3.0 %

Future maturities of lease liabilities are as follows:

(In thousands)

Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026

Fiscal 2027

Thereafter

Total lease payments

Less: Amounts representing interest

Present value of lease liabilities

9. Employee Benefit Plans

2022

13,604

11,311

9,950

7,929

6,423

6,735

55,952

3,617

52,335

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

•

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)

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)

58-6051152

Green

$ 300 $ 209 $

36-6034076

Green

256

290

165

52-6073909

Red

837

932

525

Implemented

52-1075473

Green

1,125

1,454

940

36-6488227

Green

546

431

767

43-6052659

Green

—

217

91-6123685

Green

583

783

160

525

526

581

$ 4,430 $ 4,064 $ 3,756

5/31/2018

4/30/2017

5/31/2017

6/30/2017

Pension Fund
Atlanta Ironworkers
Local Union 387 Pension
Plan
Glazier's Union Local 27
Pension and Retirement
Plan
International Painters and
Allied Trades Industry
Pension Fund

Iron Workers Local
Union No. 5 and Iron
Workers Employers
Association Employees
Pension Trust Fund

Iron Workers Mid-
America Pension Fund
Iron Workers St. Louis
District Council Pension
Trust Fund
Western Glaziers
Retirement Plan
(Washington)

Other funds

Total contributions

(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:

Iron Workers Local Union No. 5 and Iron Workers Employers Association Employees Pension Trust Fund
Iron Workers Mid-America Pension Fund

2021 and 2020
2021 and 2020

Pension Fund

Year contributions to Plan Exceeded More
Than 5 Percent of Total Contributions

Iron Workers St. Louis District Council Pension Trust Fund

Western Glaziers Retirement Plan (Washington)

Western Glaziers Retirement Fund (Oregon and Southwest Washington)

Texas Iron Workers' Pension Plan

Texas Iron Workers'Annuity

Southern Iron Workers Pension Fund

Upstate New York Engineers Pension Fund

2021

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.

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)
Change in projected benefit obligation

Benefit obligation beginning of period

Interest cost

Actuarial gain

Benefits paid

Benefit obligation at measurement date
Change in plan assets

Fair value of plan assets beginning of period

Actual return on plan assets

Company contributions

Benefits paid

Fair value of plan assets at measurement date

Underfunded status

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

(In thousands)

Other non-current assets

Current liabilities

Other non-current liabilities

Total

2022

2021

13,541 $

14,371

339

(475)

(1,000)

12,405

5,551 $

(161)

654

(1,000)

5,044

(7,361) $

346

(175)

(1,001)

13,541

5,986

(88)

654

(1,001)

5,551

(7,990)

2022

2021

361 $

(681)

(7,041)

(7,361) $

423

(683)

(7,730)

(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)

Net actuarial loss

2022

2021

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)
Interest cost

Expected return on assets

Amortization of unrecognized net loss

Net periodic benefit cost

2022

2021

2020

339 $

(85)

270

524 $

346 $

(211)

260

395 $

492

(182)

219

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.

Additional Information

Assumptions

Benefit Obligation Weighted-Average Assumptions

Discount rate

Net Periodic Benefit Expense Weighted-Average Assumptions

Discount rate

Expected long-term rate of return on assets

2022

3.20 %

2.60 %

2.50 %

2021

2.60 %

2.50 %

4.50 %

2020

3.80 %

2.50 %

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)
Estimated future benefit payments

10. Commitments and Contingent Liabilities

2023

2024

2025

2026

2027

1,041 $

993 $

964 $

936 $

909 $

2028-2032
4,041

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)
Balance at beginning of period
Additional accruals
Claims paid
Balance at end of period

2022

2021

14,999 $
10,138
(11,214)
13,923 $

15,629
5,758
(6,388)
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.

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
June 2016
August 2018
September 2018
Total

Termination date
June 2023
August 2025
September 2025

Proceeds received
$

Deferred costs

Net benefit

1.2 $
1.4
1.0
3.6 $

4.8
5.2
2.2
12.2

6.0 $
6.6
3.2
15.8 $

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

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)
Net unrealized (loss) gain on marketable securities
Foreign currency hedge
Pension liability adjustments
Foreign currency translation adjustments
Total accumulated other comprehensive loss

12. Share-Based Compensation

2022

2021

(58) $

2,717
(3,770)
(25,129)
(26,240) $

302
643
(4,152)
(24,820)
(28,027)

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.

Dividend yield
Expected volatility
Risk-free interest rate
Maximum price

2021

3.3 %
40.0 %
0.7 %

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

Awards exercised

Awards canceled

Outstanding at February 26, 2022
Vested or expected to vest at February 26, 2022

23.04

633,700 $

(178,564)

(84,336)

370,800 $

8.3 years $

4,694,328

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:

February 27, 2021
Granted
Vested

Canceled
February 26, 2022

Number of Shares
and Units

Weighted Average
Grant Date Fair Value
27.52
35.54
30.44
29.06
30.14

475,227 $
236,195
(191,995)
(30,483)
488,944 $

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)

United States

International

Earnings before income taxes

2022

2021

2020

70,039 $

(56,170)

13,869 $

45,651 $

(23,040)

22,611 $

97,297

(17,547)

79,750

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

(In thousands)

Current

Federal

State and local

International

Total current

Deferred
Federal

State and local

International

Total deferred

Total non-current tax (benefit) expense

Total income tax expense

2022

2021

2020

13,806 $

11,495 $

4,823

18,668

(1,528)

(4,270)

(2,158)

(7,956)

(329)

702

1,642

13,839

(2,860)

538

(4,138)

(6,460)

(204)

10,383 $

7,175 $

8,493

2,064

(2,720)

7,837

9,513

2,152

(1,202)

10,463

(464)

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.

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
State and local income taxes, net of federal tax benefit
Foreign tax rate differential
Nondeductible goodwill impairment expense
Valuation allowance
Nontaxable gain (loss) on life insurance policies
Deduction for foreign derived intangible income
Research & development tax credit
§162(m) Executive Compensation Limitation
Tax benefit of share based awards
Other, net
Consolidated effective income tax rate

21.0 %
16.4
(15.4)
—
63.2
1.2
(2.6)
(9.4)
3.5
(5.2)
2.2
74.9 %

21.0 %
(2.5)
(3.4)
5.6
11.4
(1.8)
(0.8)
(5.3)
3.6
0.2
3.7
31.7 %

21.0 %
1.8
(1.3)
—
2.2
(0.4)
(0.3)
(1.6)
0.3
0.2
0.5
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)
Deferred tax assets
Accrued expenses
Deferred compensation
Depreciation
Employment tax accrual
Goodwill and other intangibles
Liability for unrecognized tax benefits
Unearned income
Operating lease liabilities
Net operating losses and tax credits
Other

Total deferred tax assets
Less: valuation allowance
Deferred tax assets, net of valuation allowance
Deferred tax liabilities
Accrued expenses
Goodwill and other intangibles
Depreciation
Operating lease, right-of-use assets
Other

Total deferred tax liabilities
Net deferred tax assets (liabilities)

2022

2021

3,515 $
8,602
509
1,546
13,237
1,965
9,802
13,769
8,580
2,931
64,456
(15,370)
49,086

558
2,516
26,095
12,768
3,015
44,952
4,134 $

6,309
9,452
—
1,483
4,215
1,916
5,778
16,039
9,952
1,984
57,128
(7,435)
49,693

1,095
3,263
34,573
15,435
820
55,186
(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

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)
Gross unrecognized tax benefits at beginning of year
Gross increases in tax positions for prior years
Gross decreases in tax positions for prior years
Gross increases based on tax positions related to the current year
Settlements
Statute of limitations expiration
Gross unrecognized tax benefits at end of year

2022

2021

2020

3,755 $
108
(145)
420
(147)
(670)
3,321 $

4,071 $
106
(351)
429
(96)
(404)
3,755 $

5,111
82
(1,100)
425
(15)
(432)
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:

(In thousands)

Basic earnings per share - weighted average common shares outstanding
Weighted average effect of nonvested share grants and assumed exercise of stock options
Diluted earnings per share - weighted average common shares and potential common shares
outstanding
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

2022

2021

2020

24,920
372

25,955
349

26,474
255

25,292

26,304

26,729

111

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)
Net Sales
Architectural Framing Systems
Architectural Glass
Architectural Services
Large-Scale Optical
Intersegment elimination
Total
Operating (Loss) Income
Architectural Framing Systems
Architectural Glass
Architectural Services
Large-Scale Optical
Corporate and other
Total
Depreciation and Amortization
Architectural Framing Systems
Architectural Glass
Architectural Services
Large-Scale Optical
Corporate and other
Total

Capital Expenditures
Architectural Framing Systems
Architectural Glass
Architectural Services
Large-Scale Optical
Corporate and other
Total

2022

2021

2020

596,608 $
309,241
349,386
101,673
(42,931)
1,313,977 $

570,850 $
330,256
295,807
70,050
(36,189)
1,230,774 $

(16,726) $
1,785
32,743
23,618
(19,375)
22,045 $

26,434 $
14,564
1,422
3,185
4,388
49,993 $

8,101 $
5,865
2,692
2,250
2,933
21,841 $

(44,761) $
18,678
31,182
31,203
(10,775)
25,527 $

27,298 $
15,102
1,430
3,338
4,272
51,440 $

9,907 $
9,574
1,480
869
4,335
26,165 $

686,596
387,191
269,140
87,911
(43,399)
1,387,439

36,110
20,760
23,582
22,642
(15,246)
87,848

25,432
13,570
1,305
3,256
3,232
46,795

22,744
19,862
1,749
3,153
3,920
51,428

(In thousands)
Identifiable Assets
Architectural Framing Systems
Architectural Glass
Architectural Services
Large-Scale Optical
Corporate and other
Total

2022

2021

2020

466,141 $
225,362
61,991
56,926
77,443
887,863 $

511,608 $
271,520
79,465
64,474
88,032
1,015,099 $

604,870
291,104
107,538
62,831
62,648
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)
Net Sales
United States
Canada
Brazil

Total

Long-Lived Assets
United States
Canada
Brazil
Total

2022

2021

2020

1,194,141 $
102,027
17,809
1,313,977 $

1,115,872 $
102,721
12,181
1,230,774 $

239,264 $
7,742
2,989
249,995 $

285,007 $
9,707
3,729
298,443 $

1,254,311
120,498
12,630
1,387,439

307,782
11,130
5,474
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.

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)

February 26, 2022
Asset impairment on property, plant and
equipment

Termination benefits

Other restructuring charges

Total restructuring charges

February 27, 2021
Asset impairment on leases and property,
plant and equipment

Termination benefits

Other restructuring charges

Total restructuring charges

Architectural
Framing

Architectural
Glass

Corporate & Other

Total

54 $

21,443 $

— $

1,435

244

3,718

1,935

1,039

644

1,733 $

27,096 $

1,683 $

3,566 $

— $

1,491

224

325

—

229

—

5,281 $

325 $

229 $

21,497

6,192

2,823

30,512

3,566

2,045

224

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)

Balance at February 29, 2020

Restructuring expense

Payments

Balance at February 27, 2021

Restructuring expense

Payments

Other adjustments

Balance at February 26, 2022

Architectural
Framing

Architectural
Glass

Corporate & Other

Total

— $

4,020

(1,148)

2,872 $

2,000

(3,567)

(865)

440

— $

325

(95)

230 $

1,036

(529)

—

737

— $

229

(68)

161 $

1,039

(972)

—

228

—

4,574

(1,311)

3,263

4,075

(5,068)

(865)

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.

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.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

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

PART IV

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

3.2

3.3

4.1

4.2

10.1*

10.2*

10.3*

10.4*

10.5*

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.

10.6*

10.7*

10.8*

10.9*

10.10*

10.11*

10.12*

10.13*

10.14*

10.15*

10.16*

10.17

10.18*

10.19*

10.20*

10.21*

10.22*

10.23*

10.24*

10.25*

10.26*

10.27*

10.28*

10.29*

10.30*

10.31*

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.
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.
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.

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.
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.

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.

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.
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.
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.
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.
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.
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.
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.

10.32*

10.33*

10.34*

10.35*

10.36*

10.37*

10.38

10.39

10.40

10.41

21#
23#

31.1#

31.2#

32.1#

32.2#

101

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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Subsidiaries of the Registrant.

Consent of Deloitte & Touche LLP.

Certification of Chief Executive Officer pursuant to rule 13a-14(a) under the Securities Exchange Act of 1934.

Certification of Chief Financial Officer pursuant to rule 13a-14(a) under the Securities Exchange Act of 1934.
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.
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.
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.

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.

SIGNATURES

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
Ty R. Silberhorn

Chief Executive
Officer and
Director
(Principal Executive
Officer)

/s/ Nisheet Gupta
Nisheet Gupta

Executive Vice
President and
Chief Financial
Officer (Principal
Financial and
Accounting Officer)

/s/ Donald A. Nolan
Donald A. Nolan

Chairman

/s/ Elizabeth M. Lilly
Elizabeth M. Lilly

/s/ Christina M. Alvord
Christina M. Alvord

/s/ Frank G. Heard
Frank G. Heard

/s/ Lloyd E. Johnson

Lloyd E. Johnson

Director

/s/ Herbert K. Parker
Herbert K. Parker

/s/ Mark A. Pompa
Mark A. Pompa

/s/ Patricia K. Wagner

Patricia K. Wagner

Director

CORPORATE INFORMATION

BOARD OF DIRECTORS

CORPORATE OFFICERS

APOGEE SEGMENTS

Ty R. Silberhorn, 54
Chief Executive Officer and President

Architectural Glass Segment
Owatonna, MN

Architectural Framing Systems Segment
Minneapolis, MN

Architectural Services Segment
Minneapolis, MN

Large-Scale Optical Technologies Segment
McCook, IL

Curtis J. Dobler, 56
Executive Vice President and Chief
Human Resources Officer

Meghan M. Elliott, 45
Vice President, General Counsel and
Secretary

Nisheet Gupta, 47
Executive Vice President and Chief
Financial Officer

Gary R. Johnson, 60
Senior Vice President and Treasurer

Brent C. Jewell, 47
President, Architectural Framing
Systems

Troy R. Johnson, 48
President, Architectural Services

Nick C. Longman, 50
President, Architectural Glass

Donald A. Nolan, 61
Chair of the Board
Apogee Enterprises, Inc.
Former President and Chief Executive Officer
Kennametal Inc.

Christina M. Alvord, 55 1, 3
Retired President, Central Division
Vulcan Materials Company

Frank G. Heard, 63 1, 3
Retired Chief Executive Officer
Gibraltar Industries, Inc.

Lloyd E. Johnson, 68 1
Retired Global Managing Director, Finance and Internal
Audit
Accenture Corporation

Elizabeth M. Lilly, 59 2, 3
Chief Investment Officer and Executive Vice President
The Pohlad Companies

Herbert K. Parker, 64 3
Retired Executive Vice President-Operation Excellence
Harman International Industries, Inc.

Mark A. Pompa, 57 1, 2
Executive Vice President and Chief Financial Officer
EMCOR Group, Inc.

Ty R. Silberhorn, 54
Chief Executive Officer
Apogee Enterprises, Inc.

Patricia K. Wagner, 59, 2
Retired Group President of U.S. Utilities
Sempra Energy

1 Audit Committee
2 Compensation Committee
3 Nominating and Corporate Governance Committee

INVESTOR INFORMATION

TRANSFER AGENT AND REGISTRAR
To sign up for direct deposit of dividends service, or for inquiries
regarding stock certificates, such as address or name changes, lost
certificates or lost dividends, contact EQ Shareowner Services,
Apogee's transfer agent and registrar.

EQ Shareowner Services address:
1110 Centre Pointe Curve, Suite 101
Mendota Heights, MN 55120-4100

EQ Shareowner Services website:
www.shareowneronline.com

EQ Shareowner Services telephone numbers:
U.S. Residents: (800) 401-1957
Canada or the U.S. Virgin Islands: (800) 468-9716
Outside the U.S.: (651) 450-4064

COMMON STOCK

Apogee Enterprises, Inc. common stock is traded on
the Nasdaq Stock Market LLC under the symbol APOG.

ANNUAL MEETING OF SHAREHOLDERS

The meeting will be held at 8:00 a.m. CDT on Wednesday, June
22, 2022, at Apogee Enterprises, Inc., 4400 West 78th Street,
Suite 520, Minneapolis, MN 55435.

INVESTOR INQUIRIES

Additional information, such as Forms 10-K, 10-Q and proxy
statements as filed with the Securities and Exchange
Commission, and news releases, may be obtained through one
of the following:

Internet: www.apog.com
Email: IR@apog.com
Telephone: (952) 835-1874
Toll Free: (877) 752-3432
Mail: Apogee Enterprises, Inc.
Attn: Investor Relations

4400 West 78th Street, Suite 520
Minneapolis, MN 55435

BR037598-0522-10K