Income Taxes (Notes)

12 Months Ended

Feb. 28, 2014

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:

	2014			2013
	(In thousands)
Deferred income tax assets:
Employee related items	$	4,314		$	3,179
Inventories	836			717
Accrued warranty	508			782
Accounts receivable	235			377
Net operating loss carry forward	475			1,640
Other	1,433			921
Total deferred income tax assets	$	7,801		$	7,616
Deferred income tax liabilities:
Depreciation methods and property basis differences	$	(19,820	)	$	(18,352	)
Other assets and tax-deductible goodwill	(19,615		)	(18,051		)
Total deferred income tax liabilities	(39,435		)	(36,403		)
Net deferred income tax liabilities	$	(31,634	)	$	(28,787	)

The provision for income taxes consists of:

		2014			2013			2012
Income (loss) before income taxes:
Domestic		$	83,495		$	92,334		$	65,054
Foreign		10,416			2,035			(1,413		)
Income before income taxes		$	93,911		$	94,369		$	63,641
Current provision:
	Federal	$	28,901		$	26,330		$	16,717
	Foreign	1,903			(2,600		)	159
	State and Local	4,381			4,137			3,595
Total current provision for income taxes		$	35,186		$	27,866		$	20,470
Deferred provision (benefit):
	Federal	$	(2,143	)	$	2,024		$	3,646
	Foreign	1,230			3,455			(1,330		)
	State and Local	41			568			119
Total deferred provision for income taxes		$	(871	)	$	6,047		$	2,435
Total provision for income taxes		$	34,314		$	33,913		$	22,905

Net Operating Loss Carryforward:

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

	2014		2013
	(In thousands)
Oklahoma	$	330	$	412
Canada	$	145	$	1,228

At February 28, 2014, the Company has approximately $5.6 million of net operating loss carryforwards for state income tax purposes that will begin to expire in 2025, as well as approximately $0.6 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:

	2014		2013		2012
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Expenses not deductible for tax purposes	3.9		0.2		0.3
State income taxes, net of federal income tax benefit	4.7		3.1		3.6
Benefit of Section 199 of the Code, manufacturing deduction	(6.5	)	(2.6	)	(2.8	)
Other	(0.6	)	0.2		(0.1	)
Effective income tax rate	36.5	%	35.9	%	36.0	%

Deferred taxes had not been provided on the Accumulated Foreign Currency Translation Adjustment relating to the Company’s foreign subsidiaries amounting to $11.4 million as of February 28, 2014 as the Company considers the unremitted earnings of its foreign subsidiaries to be indefinitely reinvested.