APOGEE ENTERPRISES, INC.APOG

APOGEE ENTERPRISES, INC. Goodwill & Intangibles Disclosure

10-KFiled Apr 24, 20253 min read
Goodwill and Other Intangible Assets
Goodwill
Refer to Note 1 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, as described in Note 1. 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.

The carrying amount of goodwill attributable to each reportable segment was:
(In thousands)Architectural MetalsArchitectural ServicesArchitectural GlassPerformance SurfacesTotal
Balance at February 25, 2023$90,137 $3,031 $25,301 $10,557 $129,026 
Foreign currency translation49 7 100 — 156 
Balance at March 2, 202490,186 3,038 25,401 10,557 129,182 
Goodwill acquired — — — 107,826 107,826 
Foreign currency translation(852)(117)(264)— (1,233)
Balance at March 1, 2025$89,334 $2,921 $25,137 $118,383 $235,775 
Intangible assets
Indefinite-lived intangible assets
We have intangible assets for certain acquired trade names and trademarks which are determined to have indefinite useful lives. We test indefinite-lived intangible assets for impairment annually at the same measurement date as goodwill, the first day of our fiscal fourth quarter, or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired as described in Note 1. Based on our annual analysis and changes to our strategic branding in the 4th quarter of fiscal 2025, we recorded impairment expense of $7.6 million related to trademarks within Selling, general and administrative expenses (SG&A) in the Architectural Metals Segment.

Definite-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, as described in Note 1.

In fiscal 2025, $79.7 million of intangible assets were acquired as part of the UW Interco, LLC (UW Solutions) acquisition. The gross carrying amount of our intangible assets and related accumulated amortization was:
(In thousands)Gross Carrying AmountAccumulated
Amortization		Impairment ExpenseForeign
Currency
Translation		Net
March 1, 2025
Definite-lived intangible assets:
Customer relationships$134,402 $(56,193)$— $(2,655)$75,554 
Other intangibles66,832 (31,768)— (1,197)33,867 
Total
201,234 (87,961)— (3,852)109,421 
Indefinite-lived intangible assets:
Trademarks
26,865 — (7,634)(235)18,996 
Total intangible assets$228,099 $(87,961)$(7,634)$(4,087)$128,417 
March 2, 2024
Definite-lived intangible assets:
Customer relationships$86,798 $(53,200)$— $246 $33,844 
Other intangibles37,505 (32,250)— 150 5,405 
Total
124,303 (85,450)— 396 39,249 
Indefinite-lived intangible assets:
Trademarks
26,851 — — 14 26,865 
Total intangible assets$151,154 $(85,450)$— $410 $66,114 

Amortization expense on finite-lived intangible assets was $8.9 million, $4.9 million and $4.2 million in fiscal 2025, 2024 and 2023, respectively. All amortization expense is included within selling, general and administrative expenses. Estimated future amortization expense for finite-lived intangible assets is:
(In thousands)20262027202820292030
Estimated amortization expense$5,236 $5,236 $5,184 $4,968 $4,928 
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Historical Timeline

Fiscal YearFiled
2025Apr 24, 2025Showing above
2018Apr 30, 2018

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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