Income Taxes (Tables)

12 Months Ended

Feb. 28, 2023

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

The following table represents components of the provision for income taxes for fiscal years ended (in thousands):

	2023			2022		2021
Current:
Federal	$	15,784		$	7,284	$	9,627
State and local		3,647			2,516		2,279
Total current		19,431			9,800		11,906
Deferred:
Federal		(1,341	)		3,004		(2,217	)
State and local		(460	)		158		(496	)
Total deferred		(1,801	)		3,162		(2,713	)
Total provision for income taxes	$	17,630		$	12,962	$	9,193

Statutory U.S. Federal Income Tax Rate to Company's Effective Tax Rate

The following summary reconciles the statutory U.S. federal income tax rate to the Company’s effective tax rate for the fiscal years ended:

	2023			2022			2021
Statutory rate		21.0	%		21.0	%		21.0	%
Provision for state income taxes, net of federal    income tax benefit		3.9			5.8			4.4
Federal true-up		1.5			0.3			0.8
Stock compensation and Section 162(m) limitation		0.8			3.8			1.5
		27.2	%		30.9	%		27.6	%

Components of Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities are summarized as follows (in thousands) for fiscal years ended:

Deferred tax assets	2023			2022
Allowance for doubtful receivables	$	345		$	280
Inventories		1,170			1,032
Employee compensation and benefits		833			659
Pension and noncurrent employee compensation    benefits		1,009			1,827
Property tax		161			-
Operating lease liabilities		3,274			3,870
Net operating loss and foreign tax credits		996			1,033
Other		277			274
Total deferred tax assets		8,065			8,975
Less: valuation allowance		(1,242	)		(408	)
Total deferred tax assets, net	$	6,823		$	8,567
Deferred tax liabilities
Property, plant and equipment	$	4,902		$	6,167
Goodwill and other intangible assets		9,683			9,889
Right-of-use assets		3,204			3,797
Property tax		-			40
Other		132			79
Total deferred tax liabilities	$	17,921		$	19,972
Net deferred income tax liabilities	$	11,098		$	11,405

Reconciliation of Change in Unrecognized Tax Benefits

A reconciliation of the change in the unrecognized tax benefits for fiscal years ended 2023 and 2022 is as follows (in thousands):

	2023			2022
Balance at March 1, 2022	$	166		$	130
Additions based on tax positions		66			66
Reductions due to lapses of statues of limitations		(30	)		(30	)
Balance at February 28, 2023	$	202		$	166