Income Taxes (Notes)

12 Months Ended

Feb. 28, 2013

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

Deferred federal and state income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial accounting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax liability are as follows:

	2013			2012
	(In thousands)
Deferred income tax assets:
Employee related items	$	3,179		$	2,692
Inventories	717			715
Accrued warranty	782			629
Accounts receivable	377			337
Net operating loss carry forward	1,660			2,412
Other	901			870
Total deferred income tax assets	$	7,616		$	7,655
Deferred income tax liabilities:
Depreciation methods and property basis differences	$	(18,352	)	$	(14,242	)
Other assets and tax-deductible goodwill	(18,051		)	(16,231		)
Total deferred income tax liabilities	(36,403		)	(30,473		)
Net deferred income tax liabilities	$	(28,787	)	$	(22,818	)

The provision for income taxes consists of:

		2013			2012			2011
Income (loss) before income taxes:
Domestic		$	92,334		$	65,054		$	56,184
Foreign		2,035			(1,413		)	(1,226		)
Income before income taxes		$	94,369		$	63,641		$	54,958
Current provision:
	Federal	$	26,330		$	16,717		$	21,057
	Foreign	(2,600		)	159			370
	State and Local	4,137			3,595			2,346
Total current provision for income taxes		$	27,866		$	20,470		$	23,773
Deferred provision (benefit):
	Federal	$	2,024		$	3,646		$	(3,439	)
	Foreign	3,455			(1,330		)	(161		)
	State and Local	568			119			(178		)
Total deferred provision for income taxes		$	6,047		$	2,435		$	(3,778	)
Total provision for income taxes		$	33,913		$	22,905		$	19,995

Net Operating Loss Carryforward:

The following table summarizes the tax impact for Net Operating Loss Carryforwards:

	2013		2012
	(In thousands)
West Virginia	$	—	$	422
Oklahoma	412		422
Canada	1,228		1,568

At February 28, 2013, the Company has approximately $7.2 million of net operating loss carryforwards for state income tax purposes that will begin to expire in 2025, as well as approximately $4.7 million of net operating loss for Canada income tax purposes that will begin to expire in 2029.

A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows:

	2013		2012		2011
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Expenses not deductible for tax purposes	0.2		0.3		1.5
State income taxes, net of federal income tax benefit	3.1		3.6		2.7
Benefit of Section 199 of the Code, manufacturing deduction	(2.6	)	(2.8	)	(3.7	)
Other	0.2		(0.1	)	0.9
Effective income tax rate	35.9	%	36.0	%	36.4	%

Deferred taxes had not been provided on the Accumulated Foreign Currency Translation Adjustment relating to the Company’s subsidiaries in Canada amounting to $3.6 million as of February 28, 2013 as the Company considers the unremitted earnings of its Canadian subsidiaries to be indefinitely reinvested.