Income Taxes (Tables)

12 Months Ended

Feb. 25, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Earnings before income taxes consisted of the following:

(In thousands)	2023		2022		2021
United States	$	126,859	$	70,039	$	45,651
International	(10,238)		(56,170)		(23,040)
Earnings before income taxes	$	116,621	$	13,869	$	22,611

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)	2023		2022		2021
Current
Federal	$	9,621	$	13,806	$	11,495
State and local	7,670		4,823		702
International	231		39		1,642
Total current	17,522		18,668		13,839
Deferred
Federal	(5,120)		(1,528)		(2,860)
State and local	(2,487)		(4,270)		538
International	422		(2,158)		(4,138)
Total deferred	(7,185)		(7,956)		(6,460)
Total non-current tax (benefit) expense	2,177		(329)		(204)
Total income tax expense	$	12,514	$	10,383	$	7,175

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:

	2023		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax benefit	3.5		16.4		(2.5)
Foreign tax rate differential	(0.2)		(15.4)		(3.4)
Nondeductible goodwill impairment expense	—		—		5.6
Valuation allowance	(4.7)		63.2		11.4
Nontaxable gain (loss) on life insurance policies	0.2		1.2		(1.8)
Deduction for foreign derived intangible income	(0.2)		(2.6)		(0.8)
Research & development tax credit	(1.5)		(9.4)		(5.3)
§162(m) Executive Compensation Limitation	0.8		3.5		3.6
Tax benefit of share based awards	(0.8)		(5.2)		0.2
Worthless stock deduction	(6.0)		—		—
Other, net	(1.4)		2.2		3.7
Consolidated effective income tax rate	10.7	%	74.9	%	31.7	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at February 25, 2023 and February 26, 2022 were:

(In thousands)	2023		2022
Deferred tax assets
Accrued expenses	$	1,862	$	3,515
Deferred compensation	9,666		8,602
Section 174 capitalized costs	12,222		—
Goodwill and other intangibles	4,316		13,237
Liability for unrecognized tax benefits	1,884		1,965
Unearned income	11,007		9,802
Operating lease liabilities	13,639		13,769

(In thousands)	2023		2022
Net operating losses and tax credits	11,459		8,580
Other	3,656		4,986
Total deferred tax assets	69,711		64,456
Less: valuation allowance	(9,048)		(15,370)
Deferred tax assets, net of valuation allowance	60,663		49,086
Deferred tax liabilities
Depreciation	21,965		26,095
Operating lease, right-of-use assets	12,660		12,768
Bad debt	8,262		—
Prepaid expenses	2,467		3,015
Other	3,546		3,074
Total deferred tax liabilities	48,900		44,952
Net deferred tax assets (liabilities)	$	11,763	$	4,134

Schedule of Unrecognized Tax Benefits Roll Forward

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

(In thousands)	2023		2022		2021
Gross unrecognized tax benefits at beginning of year	$	3,321	$	3,755	$	4,071
Gross increases in tax positions for prior years	2,298		108		106
Gross decreases in tax positions for prior years	(255)		(145)		(351)
Gross increases based on tax positions related to the current year	291		420		429
Gross decreases based on tax positions related to the current year	(27)		—		—
Settlements	—		(147)		(96)
Statute of limitations expiration	(316)		(670)		(404)
Gross unrecognized tax benefits at end of year	$	5,312	$	3,321	$	3,755