Company Quick10K Filing
Quick10K
Apogee Enterprises
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$36.76 27 $978
10-Q 2019-08-31 Quarter: 2019-08-31
10-Q 2019-06-01 Quarter: 2019-06-01
10-K 2019-03-02 Annual: 2019-03-02
10-Q 2018-12-01 Quarter: 2018-12-01
10-Q 2018-09-01 Quarter: 2018-09-01
10-Q 2018-06-02 Quarter: 2018-06-02
10-K 2018-03-03 Annual: 2018-03-03
10-Q 2017-12-02 Quarter: 2017-12-02
10-Q 2017-09-02 Quarter: 2017-09-02
10-Q 2017-06-03 Quarter: 2017-06-03
10-K 2017-03-04 Annual: 2017-03-04
10-Q 2016-11-26 Quarter: 2016-11-26
10-Q 2016-08-27 Quarter: 2016-08-27
10-Q 2016-05-28 Quarter: 2016-05-28
10-K 2016-02-27 Annual: 2016-02-27
10-Q 2015-11-28 Quarter: 2015-11-28
10-Q 2015-08-29 Quarter: 2015-08-29
10-Q 2015-05-30 Quarter: 2015-05-30
10-K 2015-02-28 Annual: 2015-02-28
10-Q 2014-11-29 Quarter: 2014-11-29
10-Q 2014-08-30 Quarter: 2014-08-30
10-Q 2014-05-31 Quarter: 2014-05-31
10-K 2014-03-01 Annual: 2014-03-01
10-Q 2013-11-30 Quarter: 2013-11-30
8-K 2019-10-10 Enter Agreement, Exhibits
8-K 2019-09-17 Earnings, Exhibits
8-K 2019-09-12 Enter Agreement, Exhibits
8-K 2019-08-05 Officers, Exhibits
8-K 2019-08-05 Enter Agreement, Exhibits
8-K 2019-06-27 Earnings, Exhibits
8-K 2019-06-26 Officers, Exhibits
8-K 2019-06-25 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-04-25 Exhibits
8-K 2019-04-11 Earnings, Exhibits
8-K 2019-02-08 Enter Agreement, Exhibits
8-K 2018-12-20 Earnings, Exhibits
8-K 2018-10-02 Officers, Exhibits
8-K 2018-09-18 Earnings, Exhibits
8-K 2018-06-28 Earnings, Exhibits
8-K 2018-06-27 Officers, Amend Bylaw, Shareholder Vote, Exhibits
8-K 2018-04-26 Officers, Regulation FD, Exhibits
8-K 2018-04-12 Earnings, Exhibits
8-K 2018-01-05 Regulation FD, Other Events, Exhibits
HON Honeywell 114,605
ALV Autoliv 5,602
VC Visteon 2,072
LCII LCI Industries 2,040
THRM Gentherm 1,219
SMP Standard Motor Products 976
GTX Garrett Motion 745
TEN Tenneco 662
LDL Lydall 340
SUP Superior Industries International 67
APOG 2019-08-31
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-31.1 apog-ex31120190831.htm
EX-31.2 apog-ex31220190831.htm
EX-32.1 apog-ex32120190831.htm
EX-32.2 apog-ex32220190831.htm

Apogee Enterprises Earnings 2019-08-31

APOG 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________ 
FORM 10-Q
 _________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 2019
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File Number: 0-6365
_________________________________ 
APOGEE ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
 _________________________________
Minnesota
 
 
 
41-0919654
(State or other jurisdiction of incorporation or organization)
 
 
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
4400 West 78th Street, Suite 520
Minneapolis
Minnesota
 
55435
(Address of principal executive offices)
 
 
 
(Zip Code)
Registrant’s telephone number, including area code: (952835-1874
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
_________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common stock, par value $0.33 1/3 per share
 
APOG
 
NASDAQ Global Select Market
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.    x  Yes    o  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).     x  Yes    o  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
 
x
  
Accelerated filer
 
o
 
 
 
 
 
 
 
Non-accelerated filer
 
o
  
Smaller reporting company
 
 
 
 
 
 
 
 
Emerging growth company
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes    x  No
As of October 1, 2019, 26,554,597 shares of the registrant’s common stock, par value $0.33 1/3 per share, were outstanding.
 


Table of Contents

APOGEE ENTERPRISES, INC. AND SUBSIDIARIES
 
  
 
Page
PART I
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
PART II
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 5.
 
 
 
Item 6.
 
 
 
 

3

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements

CONSOLIDATED BALANCE SHEETS
(unaudited)
In thousands, except stock data
 
August 31, 2019
 
March 2, 2019
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
13,812

 
$
17,087

Restricted cash
 
5,633

 
12,154

Receivables, net of allowance for doubtful accounts
 
201,913

 
192,767

Inventories
 
74,284

 
78,344

Costs and earnings on contracts in excess of billings
 
74,971

 
55,095

Other current assets
 
20,721

 
16,451

Total current assets
 
391,334

 
371,898

Property, plant and equipment, net
 
319,234

 
315,823

Operating lease right-of-use assets
 
52,846

 

Goodwill
 
185,803

 
185,832

Intangible assets
 
144,605

 
148,235

Other non-current assets
 
45,004

 
46,380

Total assets
 
$
1,138,826

 
$
1,068,168

Liabilities and Shareholders’ Equity
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable
 
$
68,456

 
$
72,219

Accrued payroll and related benefits
 
30,285

 
41,119

Billings on contracts in excess of costs and earnings
 
19,459

 
21,478

Operating lease liabilities
 
10,488

 

Current portion of debt
 
155,400

 

Other current liabilities
 
87,174

 
92,696

Total current liabilities
 
371,262

 
227,512

Long-term debt
 
117,385

 
245,724

Non-current operating lease liabilities
 
43,650

 

Non-current self-insurance reserves
 
24,320

 
21,433

Other non-current liabilities
 
79,128

 
77,182

Commitments and contingent liabilities (Note 8)
 
 
 
 
Shareholders’ equity
 
 
 
 
Common stock of $0.33-1/3 par value; authorized 50,000,000 shares; issued and outstanding 26,554,597 and 27,015,127 respectively
 
8,851

 
9,005

Additional paid-in capital
 
151,735

 
151,842

Retained earnings
 
374,439

 
367,597

Common stock held in trust
 
(778
)
 
(755
)
Deferred compensation obligations
 
778

 
755

Accumulated other comprehensive loss
 
(31,944
)
 
(32,127
)
Total shareholders’ equity
 
503,081

 
496,317

Total liabilities and shareholders’ equity
 
$
1,138,826

 
$
1,068,168


See accompanying notes to consolidated financial statements.

4

Table of Contents

CONSOLIDATED RESULTS OF OPERATIONS
(unaudited)
 
 
Three Months Ended
 
Six Months Ended
In thousands, except per share data
 
August 31,
2019
 
September 1, 2018
 
August 31,
2019
 
September 1,
2018
Net sales
 
$
357,058

 
$
362,133

 
$
712,424

 
$
698,664

Cost of sales
 
270,851

 
277,667

 
545,250

 
533,468

Gross profit
 
86,207

 
84,466

 
167,174

 
165,196

Selling, general and administrative expenses
 
58,631

 
55,806

 
116,558

 
114,542

Operating income
 
27,576

 
28,660

 
50,616

 
50,654

Interest and other expense, net
 
2,203

 
1,727

 
4,813

 
3,467

Earnings before income taxes
 
25,373

 
26,933

 
45,803

 
47,187

Income tax expense
 
6,094

 
6,420

 
11,081

 
11,300

Net earnings
 
$
19,279

 
$
20,513

 
$
34,722

 
$
35,887

Earnings per share - basic
 
$
0.73

 
$
0.73

 
$
1.31

 
$
1.28

Earnings per share - diluted
 
$
0.72

 
$
0.72

 
$
1.30

 
$
1.26

Weighted average basic shares outstanding
 
26,413

 
28,128

 
26,505

 
28,127

Weighted average diluted shares outstanding
 
26,736

 
28,379

 
26,789

 
28,377


See accompanying notes to consolidated financial statements.

5

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited)
 
 
Three Months Ended
 
Six Months Ended
In thousands
 
August 31, 2019
 
September 1, 2018
 
August 31,
2019
 
September 1,
2018
Net earnings
 
$
19,279

 
$
20,513

 
$
34,722

 
$
35,887

Other comprehensive earnings (loss):
 
 
 
 
 
 
 
 
Unrealized gain (loss) on marketable securities, net of $2, ($11), $49 and ($9) of tax expense (benefit), respectively
 
8

 
(42
)
 
189

 
(32
)
Unrealized gain (loss) on derivative instruments, net of $25, ($17), $27 and ($109) of tax expense (benefit), respectively
 
84

 
(55
)
 
89

 
(359
)
Foreign currency translation adjustments
 
2,465

 
(3,383
)
 
(95
)
 
(3,900
)
Other comprehensive earnings (loss)
 
2,557

 
(3,480
)
 
183

 
(4,291
)
Total comprehensive earnings
 
$
21,836

 
$
17,033

 
$
34,905

 
$
31,596



See accompanying notes to consolidated financial statements.

6

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 
 
Six Months Ended
In thousands
 
August 31, 2019
 
September 1, 2018
Operating Activities
 
 
 
 
Net earnings
 
$
34,722

 
$
35,887

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
22,759

 
26,457

Share-based compensation
 
3,200

 
3,119

Deferred income taxes
 
9,861

 
6,061

Proceeds from New Markets Tax Credit transaction, net of deferred costs
 

 
6,052

Noncash lease expense
 
2,714

 

Other, net
 
(2,023
)
 
(1,497
)
Changes in operating assets and liabilities:
 
 
 
 
Receivables
 
(9,215
)
 
10,598

Inventories
 
4,054

 
2,747

Costs and earnings on contracts in excess of billings
 
(19,865
)
 
(39,191
)
Accounts payable and accrued expenses
 
(19,044
)
 
(15,409
)
Billings on contracts in excess of costs and earnings
 
(2,001
)
 
12,449

Refundable and accrued income taxes
 
(5,641
)
 
2,130

Other
 
(1,719
)
 
(1,474
)
Net cash provided by operating activities
 
17,802

 
47,929

Investing Activities
 
 
 
 
Capital expenditures
 
(22,559
)
 
(24,241
)
Purchases of marketable securities
 
(3,852
)
 
(9,066
)
Sales/maturities of marketable securities
 
4,522

 
4,943

Other
 
(1,121
)
 
(1,435
)
Net cash used by investing activities
 
(23,010
)
 
(29,799
)
Financing Activities
 
 
 
 
Borrowings on line of credit
 
184,500

 
205,000

Proceeds from issuance of term debt
 
150,000

 

Payments on line of credit
 
(307,500
)
 
(196,500
)
Repurchase and retirement of common stock
 
(20,010
)
 

Dividends paid
 
(9,203
)
 
(8,823
)
Other
 
(2,493
)
 
(935
)
Net cash used by financing activities
 
(4,706
)
 
(1,258
)
(Decrease) increase in cash and cash equivalents
 
(9,914
)
 
16,872

Effect of exchange rates on cash
 
118

 
(266
)
Cash, cash equivalents and restricted cash at beginning of year
 
29,241

 
19,359

Cash, cash equivalents and restricted cash at end of period
 
$
19,445

 
$
35,965

Noncash Activity
 
 
 
 
Capital expenditures in accounts payable
 
$
1,583

 
$
1,756


See accompanying notes to consolidated financial statements.

7

Table of Contents

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(unaudited)
In thousands
 
Common Shares Outstanding
 
Common Stock
 
Additional Paid-In Capital
 
Retained Earnings
 
Common Stock Held in Trust
 
Deferred Compensation Obligation
 
Accumulated Other Comprehensive (Loss) Income
Balance at March 2, 2019
 
27,015

 
$
9,005

 
$
151,842

 
$
367,597

 
$
(755
)
 
$
755

 
$
(32,127
)
Net earnings
 

 

 

 
15,443

 

 

 

Unrealized gain on marketable securities, net of $47 tax expense
 

 

 

 

 

 

 
181

Unrealized gain on foreign currency hedge, net of $2 tax expense
 

 

 

 

 

 

 
5

Foreign currency translation adjustments
 

 

 

 

 

 

 
(2,560
)
Issuance of stock, net of cancellations
 
79

 
26

 
14

 

 
(12
)
 
12

 

Share-based compensation
 

 

 
1,618

 

 

 

 

Share repurchases
 
(532
)
 
(177
)
 
(3,051
)
 
(16,782
)
 

 

 

Other share retirements
 
(32
)
 
(11
)
 
(183
)
 
(1,266
)
 

 

 

Cash dividends
 

 

 

 
(4,598
)
 

 

 

Balance at June 1, 2019
 
26,530

 
$
8,843

 
$
150,240

 
$
360,394

 
$
(767
)
 
$
767

 
$
(34,501
)
Net earnings
 

 

 

 
19,279

 

 

 

Unrealized gain on marketable securities, net of $2 tax expense
 

 

 

 

 

 

 
8

Unrealized gain on foreign currency hedge, net of $25 tax expense
 

 

 

 

 

 

 
84

Foreign currency translation adjustments
 

 

 

 

 

 

 
2,465

Issuance of stock, net of cancellations
 
44

 
15

 
27

 

 
(11
)
 
11

 

Share-based compensation
 

 

 
1,582

 

 

 

 

Other share retirements
 
(20
)
 
(7
)
 
(114
)
 
(629
)
 

 

 

Cash dividends
 

 

 

 
(4,605
)
 

 

 

Balance at August 31, 2019
 
26,554

 
$
8,851

 
$
151,735

 
$
374,439

 
$
(778
)
 
$
778

 
$
(31,944
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 3, 2018
 
28,158

 
$
9,386

 
$
152,763

 
$
373,259

 
$
(922
)
 
$
922

 
$
(24,053
)
Cumulative effect adjustment
 

 

 

 
2,999

 

 

 

Reclassification of tax effects
 

 

 

 
737

 

 

 
(737
)
Net earnings
 

 

 

 
15,373

 

 

 

Unrealized gain on marketable securities, net of $2 tax expense
 

 

 

 

 

 

 
10

Unrealized loss on foreign currency hedge, net of $92 tax benefit
 

 

 

 

 

 

 
(304
)
Foreign currency translation adjustments
 

 

 

 

 

 

 
(517
)
Issuance of stock, net of cancellations
 
90

 
30

 
35

 

 
91

 
(91
)
 

Share-based compensation
 

 

 
1,514

 

 

 

 

Exercise of stock options
 
19

 
6

 
177

 

 

 

 

Other share retirements
 
(41
)
 
(13
)
 
(228
)
 
(1,440
)
 

 

 

Cash dividends
 

 

 

 
(4,410
)
 

 

 

Balance at June 2, 2018
 
28,226

 
$
9,409

 
$
154,261

 
$
386,518

 
$
(831
)
 
$
831

 
$
(25,601
)
Net earnings
 

 

 

 
20,514

 

 

 

Unrealized loss on marketable securities, net of $11 tax benefit
 

 

 

 

 

 

 
(42
)
Unrealized loss on foreign currency hedge, net of $17 tax benefit
 

 

 

 

 

 

 
(55
)
Foreign currency translation adjustments
 

 

 

 

 

 

 
(3,383
)
Issuance of stock, net of cancellations
 
35

 
12

 
37

 

 
(11
)
 
11

 

Share-based compensation
 

 

 
1,605

 

 

 

 

Other share retirements
 
(1
)
 
(1
)
 
(5
)
 

 

 

 

Cash dividends
 

 

 

 
(4,413
)
 

 

 

Balance at September 1, 2018
 
28,260

 
$
9,420

 
$
155,898

 
$
402,619

 
$
(842
)
 
$
842

 
$
(29,081
)



See accompanying notes to consolidated financial statements.

8

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1.
Summary of Significant Accounting Policies

Basis of presentation
The consolidated financial statements of Apogee Enterprises, Inc. (we, us, our or the Company) have been prepared in accordance with accounting principles generally accepted in the United States. The information included in this Form 10-Q should be read in conjunction with the Company’s Form 10-K for the year ended March 2, 2019. We use the same accounting policies in preparing quarterly and annual financial statements. All adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. The results of operations for the six-month period ended August 31, 2019 are not necessarily indicative of the results to be expected for the full year.

Adoption of new accounting standards
At the beginning of fiscal 2020, we adopted the guidance in ASC 842, Leases, following a modified retrospective approach and elected not to restate prior periods. Adoption of the new standard resulted in recording operating lease assets and liabilities of approximately $50 million as of March 3, 2019 and did not materially impact our consolidated net earnings and cash flows. Refer to additional information in Note 7.

Accounting standards not yet adopted
In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. This ASU is effective for our fiscal year 2021. Entities are required to apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We are currently assessing this ASU's impact on our consolidated financial statements.

Subsequent events
We have evaluated subsequent events for potential recognition and disclosure through the date of this filing and determined that there were no subsequent events that required recognition or disclosure in 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 13 for disclosure of revenue by segment):
 
 
Three Months Ended
 
Six Months Ended
In thousands
 
August 31, 2019
 
September 1, 2018
 
August 31, 2019
 
September 1, 2018
Recognized at shipment
 
$
164,336

 
$
166,534

 
$
319,602

 
$
323,401

Recognized over time
 
192,722

 
195,599

 
392,822

 
375,263

Total
 
$
357,058

 
$
362,133

 
$
712,424

 
$
698,664



Receivables
Trade and construction accounts receivable consist of amounts billed and due from customers. The amounts due are stated at their estimated net realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. This allowance is based on an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. 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
 
August 31, 2019
 
March 2, 2019
Trade accounts
 
$
153,765

 
$
145,693

Construction contracts
 
17,822

 
19,050

Contract retainage
 
35,047

 
32,396

Total receivables
 
206,634

 
197,139

Less: allowance for doubtful accounts
 
(4,721
)
 
(4,372
)
Net receivables
 
$
201,913

 
$
192,767



9

Table of Contents

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
 
August 31, 2019
 
March 2, 2019
Contract assets
 
$
110,018

 
$
87,491

Contract liabilities
 
22,980

 
24,083



The increase in contract assets was due to timing of costs incurred in advance of billings, primarily on a legacy EFCO project. The change in contract liabilities was due to timing of project activity within our businesses that operate under long-term contracts.
Other contract-related disclosures
 
Three Months Ended
 
Six Months Ended
In thousands
 
August 31, 2019
 
September 1, 2018
 
August 31, 2019
 
September 1, 2018
Revenue recognized related to contract liabilities from prior year-end
 
$
3,361

 
$
1,262

 
$
17,455

 
$
10,380

Revenue recognized related to prior satisfaction of performance obligations
 
4,481

 
1,470

 
6,430

 
3,798


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 August 31, 2019, the transaction price associated with unsatisfied performance obligations was approximately $775.7 million. The performance obligations are expected to be satisfied, and the corresponding revenue to be recognized, over the following estimated time periods:
In thousands
 
August 31, 2019
Within one year
 
$
442,666

Within two years
 
286,223

Beyond
 
46,800

Total
 
$
775,689



3.
Supplemental Balance Sheet Information

Inventories
In thousands
 
August 31, 2019
 
March 2, 2019
Raw materials
 
$
40,810

 
$
43,890

Work-in-process
 
17,071

 
15,533

Finished goods
 
16,403

 
18,921

Total inventories
 
$
74,284

 
$
78,344



Other current liabilities
In thousands
 
August 31, 2019
 
March 2, 2019
Warranties
 
$
10,857

 
$
12,475

Accrued project losses
 
29,221

 
37,085

Taxes
 
7,604

 
8,026

Accrued self-insurance reserves
 
8,433

 
9,537

Other
 
31,059

 
25,573

Total other current liabilities
 
$
87,174

 
$
92,696



10

Table of Contents


Other non-current liabilities
In thousands
 
August 31, 2019
 
March 2, 2019
Deferred benefit from New Market Tax Credit transactions
 
$
26,458

 
$
26,458

Retirement plan obligations
 
7,633

 
7,633

Deferred compensation plan
 
10,979

 
10,408

Other
 
34,058

 
32,683

Total other non-current liabilities
 
$
79,128

 
$
77,182



4.
Financial Instruments

Marketable securities
Through our wholly-owned insurance subsidiary, Prism Assurance, Ltd. (Prism), we hold the following available-for-sale marketable securities, made up of municipal and corporate bonds: 
In thousands
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated
Fair Value
August 31, 2019
 
$
11,796

 
$
192

 
$
3

 
$
11,985

March 2, 2019
 
12,481

 
59

 
108

 
12,432



Prism insures a portion of our general liability, workers’ compensation and automobile liability risks using reinsurance agreements to meet statutory requirements. The reinsurance carrier requires Prism to maintain fixed-maturity investments for the purpose of providing collateral for Prism’s obligations under the reinsurance agreements.

The amortized cost and estimated fair values of these bonds at August 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without penalty. 
In thousands
 
Amortized Cost
 
Estimated Fair Value
Due within one year
 
$
251

 
$
251

Due after one year through five years
 
9,124

 
9,289

Due after five years through 10 years
 
2,015

 
2,037

Due after 10 years through 15 years
 

 

Due beyond 15 years
 
406

 
408

Total
 
$
11,796

 
$
11,985



Derivative instruments
In August 2019, we entered into an interest rate swap to hedge exposure to variability in cash flows from interest payments on our floating-rate revolving credit facility. As of August 31, 2019, the interest rate swap contract had a notional value of $85 million.

We periodically enter into forward purchase foreign currency cash flow hedge contracts, generally with an original maturity date of less than one year, to hedge foreign currency exchange rate risk. As of August 31, 2019, we held foreign exchange forward contracts with a U.S. dollar notional value of $27.8 million, with the objective of reducing the exposure to fluctuations in the Canadian dollar and the Euro.

These derivative instruments are recorded within our consolidated balance sheets within other current assets and liabilities. Gains or losses associated with these instruments are recorded as a component of accumulated other comprehensive income.

Fair value measurements
Financial assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement: Level 1 (unadjusted quoted prices in active markets for identical assets or liabilities); Level 2 (observable market inputs, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). We do not have any Level 3 financial assets or liabilities.

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Table of Contents

In thousands
 
Quoted Prices in
Active Markets
(Level 1)
 
Other Observable Inputs (Level 2)
 
Total Fair Value
August 31, 2019
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Money market funds
 
$
3,589

 
$

 
$
3,589

Commercial paper
 

 
1,250

 
1,250

Municipal and corporate bonds
 

 
11,985

 
11,985

Liabilities:
 
 
 
 
 
 
Foreign currency forward/option contract
 

 
299

 
299

Interest rate swap contract
 

 
179

 
179

 
 
 
 
 
 
 
March 2, 2019
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
Money market funds
 
$
2,015

 
$

 
$
2,015

Commercial paper
 

 
300

 
300

Municipal and corporate bonds
 

 
12,432

 
12,432

Liabilities:
 
 
 
 
 
 
Foreign currency forward/option contract
 

 
470

 
470



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.

Derivative instruments
The interest rate swap is measured at fair value using unobservable market inputs, based off of benchmark interest rates. Forward foreign exchange contracts are measured at fair value using unobservable market inputs, such as quotations on forward foreign exchange points and foreign currency exchange rates. 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 both interest and currency rates.

5.
Goodwill and Other Identifiable Intangible Assets

The carrying amount of goodwill attributable to each reporting segment was:  
In thousands
 
Architectural Framing Systems
 
Architectural Glass
 
Architectural Services
 
Large-Scale
Optical
 
Total
Balance at March 3, 2018
 
$
143,308

 
$
25,971

 
$
1,120

 
$
10,557

 
$
180,956

Goodwill adjustments for purchase accounting

 
6,267

 

 

 

 
6,267

Foreign currency translation
 
(1,129
)
 
(262
)
 

 

 
(1,391
)
Balance at March 2, 2019
 
148,446

 
25,709

 
1,120

 
10,557

 
185,832

Foreign currency translation
 
(42
)
 
13

 

 

 
(29
)
Balance at August 31, 2019
 
$
148,404

 
$
25,722

 
$
1,120

 
$
10,557

 
$
185,803











12

Table of Contents

The gross carrying amount of other intangible assets and related accumulated amortization was:
In thousands
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Impairment
 
Foreign
Currency
Translation
 
Net
August 31, 2019
 
 
 
 
 
 
 
 
 
 
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
$
120,238

 
$
(29,939
)
 
$

 
$
(71
)
 
$
90,228

Other intangibles
 
40,974

 
(31,989
)
 

 
(10
)
 
8,975

Total definite-lived intangible assets
 
161,212

 
(61,928
)
 

 
(81
)
 
99,203

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
Trademarks
 
45,421

 

 

 
(19
)
 
45,402

Total intangible assets
 
$
206,633

 
$
(61,928
)
 
$

 
$
(100
)
 
$
144,605

March 2, 2019
 
 
 
 
 
 
 
 
 
 
Definite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
$
122,816

 
$
(26,637
)
 
$

 
$
(2,578
)
 
$
93,601

Other intangibles
 
41,697

 
(31,634
)
 

 
(850
)
 
9,213

Total definite-lived intangible assets
 
164,513

 
(58,271
)
 

 
(3,428
)
 
102,814

Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
Trademarks
 
49,078

 

 
(3,141
)
 
(516