Income Taxes Level 1 (Notes)

6 Months Ended

Aug. 31, 2017

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

For the six months endedAugust 31, 2017, the Company recorded an income tax benefit from continuing operations of $(3,963), which includes a discrete income tax provision of $65 related to the accrual of interest for unrecognized tax benefits and the re-measurement of state deferred taxes based on law changes enacted during the period. The income tax benefit relates primarily to foreign taxes offset by an income tax benefit for domestic losses incurred during Fiscal 2018, as the U.S. taxable income from discontinued operations is treated as a source of income under the intra-period allocation guidance. For the six months endedAugust 31, 2016, the Company recorded an income tax benefit from continuing operations of $(6,940), which includes a discrete income tax provision of $166 related to the accrual of interest for unrecognized tax benefits.

The effective tax rate for the six months endedAugust 31, 2017 and August 31, 2016 was an income tax benefit from continuing operations of 15.0% and 70.2%, respectively. The effective tax rate for the six months endedAugust 31, 2017 differs from the U.S. statutory rate of 35% primarily due to the ability to provide an income tax benefit for domestic losses, as the U.S. taxable income from discontinued operations is treated as a source of income under the intra-period allocation guidance, coupled with the mix of domestic and foreign earnings, the non-controlling interest related to EyeLock LLC, and an income tax benefit related to various federal tax credits.

For the three months endedAugust 31, 2017, the Company recorded an income tax provision from continuing operations of $3,465, which includes a discrete income tax provision of $55 related to the accrual of interest for unrecognized tax benefits and the re-measurement of state deferred taxes based on law changes enacted during the quarter. For the three months endedAugust 31, 2016, the Company recorded an income tax benefit from continuing operations of $(5,543), which includes a discrete income tax provision of $64 related to the accrual of interest for unrecognized tax benefits.

The effective tax rate for the three months endedAugust 31, 2017 and August 31, 2016 was an income tax provision from continuing operations of 21.2% and an income tax benefit of 267.6%, respectively. The effective tax rate for the three months endedAugust 31, 2017 differs from the U.S. statutory rate of 35% primarily due to the ability to provide an income tax benefit for domestic losses as the U.S. taxable income from discontinued operations is treated as a source of income under the intra-period allocation guidance, coupled with the mix of domestic and foreign earnings, the non-controlling interest related to EyeLock LLC, and an income tax benefit related to various federal tax credits.

At August 31, 2017, the Company had an uncertain tax position liability from continuing operations of $3,328, including interest and penalties. The unrecognized tax benefits include amounts related to various U.S. federal, state and local and foreign tax issues.