Income Taxes (Tables)

12 Months Ended

Feb. 28, 2018

Components of Provision for Income Taxes

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

	2018			2017			2016
Current:
Federal	$	14,001		$	10,543		$	16,086
State and local		1,944			2,254			2,502
Total current		15,945			12,797			18,588
Deferred:
Federal		(1,811	)		932			342
State and local		17			(113	)		(147	)
Total deferred		(1,794	)		819			195
Total provision for income taxes	$	14,151		$	13,616		$	18,783

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:

	2018				2017				2016
Statutory rate		32.7		%		35.0		%		35.0		%
Provision for state income taxes, net of federal income tax benefit		2.8				3.5				3.1
Domestic production activities deduction		(2.8	)			(2.5	)			(2.5	)
Valuation allowance		—				(3.4	)			0.7
Federal true-up		4.1				0.6				—
Tax Cuts and Jobs Act		(7.6	)			-				—
Other		1.0				0.8				0.5
		30.2		%		34.0		%		36.8		%

On December 22, 2017, H.R. 1, known as the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law. Among other things, the Tax Act permanently lowers the corporate tax rate to 21% from the existing maximum rate of 35%, effective for tax years including or commencing January 1, 2018. As a result of the reduction of the corporate tax rate to 21%, the Company has re-valued its deferred tax assets and liabilities as of the date of enactment, with resulting tax effects accounted for in the reporting period of enactment. This change in the statutory tax rate resulted in reduction in income tax expense being recognized of $3.6 million due to the adjustment of deferred tax liabilities based on the expected prevailing tax rate at the expected time of their realization.

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	2018		2017
Allowance for doubtful receivables	$	255	$	512
Inventories		738		1,124
Employee compensation and benefits		703		1,448
Pension and noncurrent employee compensation benefits		2,888		5,786
Net operating loss and foreign tax credits		429		438
Stock options		285		552
Total deferred tax assets	$	5,298	$	9,860
Deferred tax liabilities
Property, plant and equipment	$	4,140	$	6,979
Goodwill and other intangible assets		7,158		9,371
Property tax		158		440
Other		31		23
Total deferred tax liabilities	$	11,487	$	16,813
Net deferred income tax liabilities	$	6,189	$	6,953

Reconciliation of Change in Unrecognized Tax Benefits

A reconciliation of the change in the unrecognized tax benefits for fiscal years ended 2018 and 2017 is as follows (in thousands):

	2018			2017
Balance at March 1, 2017	$	249		$	225
Additions based on tax positions		(25	)		99
Reductions due to lapses of statues of limitations		(83	)		(75	)
Balance at February 28, 2018	$	141		$	249