Income Taxes (Tables)

12 Months Ended

Feb. 26, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Earnings before income taxes consisted of the following:

(In thousands)	2022		2021		2020
United States	$	70,039	$	45,651	$	97,297
International	(56,170)		(23,040)		(17,547)
Earnings before income taxes	$	13,869	$	22,611	$	79,750

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for each of the last three fiscal years are as follows:

(In thousands)	2022		2021		2020
Current
Federal	$	13,806	$	11,495	$	8,493
State and local	4,823		702		2,064
International	39		1,642		(2,720)
Total current	18,668		13,839		7,837
Deferred
Federal	(1,528)		(2,860)		9,513
State and local	(4,270)		538		2,152
International	(2,158)		(4,138)		(1,202)
Total deferred	(7,956)		(6,460)		10,463
Total non-current tax (benefit) expense	(329)		(204)		(464)
Total income tax expense	$	10,383	$	7,175	$	17,836

Schedule of Effective Income Tax Rate Reconciliation

The following table provides a reconciliation of the statutory federal income tax rate to our consolidated effective tax rates:

	2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax benefit	16.4		(2.5)		1.8
Foreign tax rate differential	(15.4)		(3.4)		(1.3)
Nondeductible goodwill impairment expense	—		5.6		—
Valuation allowance	63.2		11.4		2.2
Nontaxable gain (loss) on life insurance policies	1.2		(1.8)		(0.4)
Deduction for foreign derived intangible income	(2.6)		(0.8)		(0.3)
Research & development tax credit	(9.4)		(5.3)		(1.6)
§162(m) Executive Compensation Limitation	3.5		3.6		0.3
Tax benefit of share based awards	(5.2)		0.2		0.2
Other, net	2.2		3.7		0.5
Consolidated effective income tax rate	74.9	%	31.7	%	22.4	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at February 26, 2022 and February 27, 2021 were:

(In thousands)	2022		2021
Deferred tax assets
Accrued expenses	$	3,515	$	6,309
Deferred compensation	8,602		9,452
Depreciation	509		—
Employment tax accrual	1,546		1,483
Goodwill and other intangibles	13,237		4,215
Liability for unrecognized tax benefits	1,965		1,916
Unearned income	9,802		5,778
Operating lease liabilities	13,769		16,039
Net operating losses and tax credits	8,580		9,952
Other	2,931		1,984
Total deferred tax assets	64,456		57,128
Less: valuation allowance	(15,370)		(7,435)
Deferred tax assets, net of valuation allowance	49,086		49,693
Deferred tax liabilities
Accrued expenses	558		1,095
Goodwill and other intangibles	2,516		3,263
Depreciation	26,095		34,573
Operating lease, right-of-use assets	12,768		15,435
Other	3,015		820
Total deferred tax liabilities	44,952		55,186
Net deferred tax assets (liabilities)	$	4,134	$	(5,493)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:

(In thousands)	2022		2021		2020
Gross unrecognized tax benefits at beginning of year	$	3,755	$	4,071	$	5,111
Gross increases in tax positions for prior years	108		106		82
Gross decreases in tax positions for prior years	(145)		(351)		(1,100)
Gross increases based on tax positions related to the current year	420		429		425
Settlements	(147)		(96)		(15)
Statute of limitations expiration	(670)		(404)		(432)
Gross unrecognized tax benefits at end of year	$	3,321	$	3,755	$	4,071