Income Taxes (Tables)

12 Months Ended

Feb. 29, 2024

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):

	2024			2023			2022
Current:
Federal	$	13,842		$	15,784		$	7,284
State and local		4,337			3,647			2,516
Total current		18,179			19,431			9,800
Deferred:
Federal		(1,133	)		(1,341	)		3,004
State and local		(520	)		(460	)		158
Total deferred		(1,653	)		(1,801	)		3,162
Total provision for income taxes	$	16,526		$	17,630		$	12,962

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:

	2024			2023			2022
Statutory rate		21.0	%		21.0	%		21.0	%
Provision for state income taxes, net of federal    income tax benefit		4.3			3.9			5.8
Federal true-up		1.8			1.5			0.3
Stock compensation and Section 162(m) limitation		0.9			0.8			3.8
		28.0	%		27.2	%		30.9	%

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	2024			2023
Allowance for credit losses	$	385		$	345
Inventories		1,128			1,170
Employee compensation and benefits		712			833
Pension and noncurrent employee compensation    benefits		952			1,009
Property tax		-			161
Operating lease liabilities		2,529			3,274
Net operating loss and foreign tax credits		878			996
Other		-			277
Total deferred tax assets		6,584			8,065
Less: valuation allowance		(408	)		(1,242	)
Total deferred tax assets, net	$	6,176		$	6,823
Deferred tax liabilities
Property, plant and equipment	$	3,137		$	4,902
Goodwill and other intangible assets		9,739			9,683
Right-of-use assets		2,466			3,204
Other		139			132
Total deferred tax liabilities	$	15,481		$	17,921
Net deferred income tax liabilities	$	9,305		$	11,098

Reconciliation of Change in Unrecognized Tax Benefits

A reconciliation of the change in the unrecognized tax benefits for fiscal years ended 2024 and 2023 is as follows (in thousands):

	2024			2023
Balance at March 1, 2023	$	202		$	166
Additions based on tax positions		66			66
Reductions due to lapses of statues of limitations		(30	)		(30	)
Balance at February 29, 2024	$	238		$	202