10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

ý        ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended February 28, 2015

OR

¨        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-12777

AZZ incorporated

(Exact name of registrant as specified in its charter)

TEXAS	75-0948250
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Museum Place, Suite 500 3100 West Seventh Street Fort Worth, Texas	76107
(Address of principal executive offices)	(Zip Code)

(817) 810-0095

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $1.00 par value per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes                    No

¨ý

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.

Yes                    No

¨ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes                    No

ý¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes                    No

ý¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller Reporting Company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes                    No

¨ý

As of August 29, 2014 (the last business day of its most recently completed second fiscal quarter), the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was $1,154,492,795 based on the closing sale price of $46.34 per share as reported on the New York Stock Exchange. For purposes of determining the above stated amount, only the directors, executive officers and 10% or greater shareholders of the registrant have been deemed affiliates; however, this does not represent a conclusion by the registrant that any or all such persons are affiliates of the registrant.

As of April 14, 2015, there were 25,765,025 shares of the registrant’s common stock ($1.00 par value) outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Certain information contained in the definitive Proxy Statement for the Annual Meeting of Shareholders to be held July 14, 2015 (Proxy Statement) - Part III

AZZ incorporated

YEAR ENDED FEBRUARY 28, 2015

INDEX TO FORM 10-K

PART I		3
Item 1.	Business	3
Item 1A.	Risk Factors	8
Item 1B.	Unresolved Staff Comments	8
Item 2.	Properties	9
Item 3.	Legal Proceedings	11
Item 4.	Mine Safety Disclosures	11
PART II		12
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	12
Item 6.	Selected Financial Data	14
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	14
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 8.	Financial Statements and Supplementary Data	22
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	51
Item 9A.	Controls and Procedures	51
Item 9B.	Other Information	51
PART III		52
Item 10.	Directors, Executive Officers and Corporate Governance	52
Item 11.	Executive Compensation	52
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	52
Item 13.	Certain Relationships and Related Transactions, and Director Independence	53
Item 14.	Principal Accountant Fees and Services	53
PART IV		54
Item 15.	Exhibits and Financial Statement Schedules	54
SIGNATURES		55

Forward Looking Statements

Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. In addition, certain factors could affect the outcome of the matters described herein. This Annual Report on Form 10-K may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand and response to products and services offered by AZZ, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the hot dip galvanizing markets; prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; changes in the political stability and economic conditions of the various markets that AZZ serves, foreign and domestic, customer requested delays of shipments, acquisition opportunities, currency exchange rates, adequacy of financing, and availability of experienced management and employees to implement AZZ’s growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; the continuing economic volatility in the U.S. and other markets in which we operate; acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

PART I

Item 1.    Business

AZZ incorporated (“AZZ”, the “Company”, "our" or “we”) was established in 1956 and incorporated under the laws of the State of Texas. We are a global provider of galvanizing services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. AZZ Galvanizing is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide.

As of March 1, 2014, our Electrical and Industrial Products and Services Segment was rebranded to the Energy Segment to more closely align the description of the segment with the nature of its operations and served markets. There have been no changes to the underlying information reported under this operating segment however, the new description will be included in the operating results for the years ended February 28, 2015, 2014 and 2013 and in future filings.

Energy Segment

AZZ's Energy Segment is a leading provider of specialized products and services designed to support industrial, nuclear and electrical applications. Our product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, nuclear safety-related equipment and tubular products. In addition to our product offerings, AZZ's Energy Segment focuses on extension of life cycle for the power generation, refining and industrial infrastructure, through automated weld overlay solutions for corrosion and erosion mitigation. The markets for our Energy Segment are highly competitive and consist of large multi-national companies, along with numerous small independent companies. Competition is based primarily on product quality, range of product line, price and service. While some of our competitors are much larger than us, our Energy Segment offers some of the most technologically advanced solutions and engineering resources developed from a legacy of proven, reliable product options, allowing AZZ Energy to be ideally positioned to meet the most challenging application-specific demands.

Copper, aluminum, steel and nickel based alloys are the primary raw materials used by this segment. We do not foresee any availability issues for these materials. We do not commit contractually to minimum volumes and increases in price for these items are normally managed through escalation clauses to the customer’s contracts. In addition, we look to get firm pricing contracts from our vendors on these materials at the time we receive orders from our customers, to minimize risk. Customers may resist these escalation clauses.

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We sell this segment’s products through manufacturers’ representatives, distributors, agents and our internal sales force. We are not dependent on any single customer for this segment, and the loss of any single customer would not have a material adverse effect on our consolidated revenues or net income.

On March 29, 2013, we completed our acquisition of Aquilex Specialty Repair and Overhaul LLC, a Delaware limited liability company (“Aquilex SRO”). Aquilex SRO provides the energy industry with specialty repair and overhaul solutions designed to improve mechanical integrity and extend component life for critical equipment. This acquisition is part of our strategy to expand our offerings in the Energy Segment and to enhance our international footprint in the power generation and refining markets. Aquilex SRO is a market leader in weld overlay services for corrosion and erosion mitigation in power generation and refining facilities worldwide.

On June 1, 2012, we completed the acquisition of substantially all of the assets of Nuclear Logistics Incorporated ("NLI"), located in Fort Worth, Texas. NLI is the leading third party supplier of safety related electrical and mechanical equipment in the domestic nuclear industry. This acquisition was made to expand our product offerings as well as increase AZZ's footprint in the power generation market.

The acquisitions of NLI and Aquilex SRO allows AZZ to participate in the extension of life cycle for power generation, refining and petrochemical infrastructure globally. Prior to these acquisitions, our business was primarily driven by new construction projects in power generation, transmission, distribution and industrial markets. The addition of NLI and Aquilex SRO has successfully transformed the segment to be a service provider that focuses on safety, reliability and life extension for critical equipment in the energy markets. Following these acquisitions, the customer base for the segment is more global and more diversified, while our offering is a balanced mix of products and services. For additional information on recent acquisitions, please refer to Note 16 in the Notes to Consolidated Financial Statements.

For additional information on the Energy Segment's backlog and operating results, see Results of Operations within Item 7. For additional financial information by segment, see Note 13 of the Notes to Consolidated Financial Statements.

Galvanizing Services Segment

The Galvanizing Services Segment provides hot dip galvanizing to the steel fabrication industry through facilities located throughout the United States and Canada. Hot dip galvanizing is a metallurgical process in which molten zinc is applied to steel. The zinc alloying renders corrosion protection to fabricated steel for extended periods of up to 50 years. As of February 28, 2015, we operated thirty-six galvanizing plants, which are located in Alabama, Arkansas, Arizona, Colorado, Indiana, Illinois, Louisiana, Kentucky, Minnesota, Mississippi, Missouri, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia in the United States and Ontario, Quebec and Nova Scotia, Canada.

Galvanizing is a highly competitive business, and we compete with other galvanizing companies, captive galvanizing facilities operated by manufacturers, and alternate forms of corrosion protection such as material selection (stainless steel or aluminum) or barrier protections such as powder coating, paint, and weathered steel. Our galvanizing markets are generally limited to areas within relatively close proximity to our galvanizing plants due to freight cost.

Zinc, the principal raw material used in the galvanizing process, is currently readily available, but is subject to volatile pricing. We manage our exposure to commodity pricing of zinc by utilizing agreements with zinc suppliers that include fixed costs contracts to guard against escalating commodity prices. We also secure firm pricing for natural gas supplies with individual utilities when possible.

We typically serve fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical and general industrial markets, and numerous original equipment manufacturers. We do not depend on any single customer for our galvanizing services, and the loss of any single customer would not have a material adverse effect on our consolidated revenues or net income.

On June 30, 2014, we completed our acquisition of substantially all the assets of Zalk Steel & Supply Co. (“Zalk Steel”), a Minneapolis, Minnesota-based galvanizing company. Zalk Steel was acquired to expand AZZ's existing geographic footprint in North America.

On January 2, 2013, we acquired G3 Galvanizing Limited ("G3"), a company with operations in Halifax, Nova Scotia.

On October 1, 2012, we completed the acquisition of substantially all of the assets of Galvcast Manufacturing Inc. (“Galvcast”), a Canadian galvanizing company with operations in Ontario, and certain real property owned by an affiliate of Galvcast.

The G3 and Galvcast acquisitions were both made to complement and expand our existing geographic Canadian footprint. For additional information on recent acquisitions, please refer to Note 16 in the Notes to Consolidated Financial Statements.

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For additional information on the Galvanizing Services Segment's backlog and operating results, see Results of Operations within Item 7. For additional financial information by segment, see Note 13 of the Notes to Consolidated Financial Statements.

Employees

As of February 28, 2015, the Company employed approximately 3,244 persons consisting of approximately 2,661 in the United States, approximately 327 in Canada, 230 in Europe, and 26 in other countries.

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Executive Officers of the Registrant

Name	Age	Business Experience of Executive Officers for Past Five Years Position or Office with Registrant or Prior Employer	Held Since
Thomas E. Ferguson	58	President and Chief Executive Officer Chief Executive Officer, FlexSteel Pipeline Technologies, Inc. President, Flow Solutions Group, Flowserve Corp. President, Pump Division, Flowserve Corp.	2013 2013-2013 2009-2012 2003-2009
Paul W. Fehlman	51	Senior Vice President of Finance, Chief Financial Officer Vice President, Finance, Engineered Products Division, Flowserve Corp. Vice President, Investor Relations and FP&A, Flowserve Corp. Vice President, Treasurer, Flowserve Corp.	2014 2011-2013 2009-2011 2004-2009
Tim E. Pendley	53	Senior Vice President, Galvanizing Services Segment Vice President Operations, Galvanizing Services Segment	2009 2004-2009
Robert J. Steines	52	Vice President, Chief Accounting Officer Vice President, Corporate Controller, Great Lakes Dredge and Dock Vice President, Finance, Neuromodulation Division St. Jude Medical	2013 2012-2013 2006-2011
Tara D. Mackey	45	Chief Legal Officer and Secretary Chief Legal Counsel and Corporate Secretary, First Parts, Inc. General Counsel and Corporate Secretary, Silverleaf Resorts Inc. VP, Assistant General Counsel and Corporate Secretary, SuperMedia LLC	2014 2013-2014 2011-2013 2008-2011
Matt V. Emery	47	Vice President, Chief Information Officer Senior Director of Information Technologies, Hewlett-Packard	2013 2004-2013
Debbie R. Forester	53	Vice President, Human Resources Director Human Resources at Weir Oil & Gas Regional HR Business Partner and Manager of Human Resources at Chesapeake Energy, Inc.	2014 2014-2014 2008-2014
Chris M. Bacius	54	Vice President, Corporate Development Vice President Mergers & Acquisition, Flowserve Corporation Vice President Business Development, Flowserve Corporation	2014 2012-2014 2009-2012

Each executive officer was elected by the Board of Directors to hold office until the next Annual Meeting or until their successor is elected. No executive officer has any family relationships with any other executive officer of the Company.

Available Information

AZZ files or furnishes annual, quarterly and current reports, proxy statements and other documents with the SEC under the Securities Exchange Act of 1934 (the "Exchange Act"). The public may read and copy any materials that AZZ files with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Also, the SEC maintains an Internet website that contains reports, proxy and information statements, and other information regarding issuers, including AZZ, that file electronically with the SEC. The public can obtain any documents that AZZ files with the SEC at http://www.sec.gov.

In addition, we make available, free of charge, on our Internet website, our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file this material with, or furnish it to, the SEC. You may review these documents, under the heading “Investor Relations,” subheading “SEC Filings,” on our website at

http://www.azz.com.

Corporate Governance

Our Company’s Board of Directors (the “Board”), with the assistance of its Nominating and Corporate Governance Committee, has adopted Corporate Governance Guidelines that set forth the Board’s policies regarding corporate governance.

In connection with the Board’s responsibility to oversee our legal compliance and conduct, the Board has adopted a Code of Ethics, which applies to the Company’s officers, directors and employees.

The Board has adopted charters for each of its Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee. You may review the Corporate Governance Guidelines, our Code of Ethics and our Committee charters under the Heading “Investor Relations,” subheading “Corporate Governance,” on our website at:

6

http://www.azz.com

You may also obtain a copy of these documents by mailing a request to:

AZZ incorporated

Investor Relations

One Museum Place, Suite 500

3100 West Seventh Street

Fort Worth, TX 76107

7

Item 1A.    Risk Factors

Our business is subject to a variety of risks, including the risks described below, which we believe are the most significant risks and uncertainties facing our business. However, they are not the only ones facing us. Additional risks and uncertainties not known to us or not described below may also impair our business operations. If any of the following risks actually occur, our business, financial condition and results of operations could be negatively impacted and our future growth could be impacted as well.

Our business segments operate in highly competitive markets.

Many of our competitors, primarily in our Energy Segment, are significantly larger and have substantially more resources. Competition is based on a number of factors, including price. Certain of our competitors may have lower cost structures and may, therefore, be able to provide their products and services at lower prices than we are able to provide. We cannot be certain that our competitors will not develop the expertise, experience and resources to provide services that are superior in both price and quality. Similarly, we cannot be certain that we will be able to maintain or enhance our competitive position within our industries, maintain our customer base at current levels or increase our customer base.

Climate change could impact our business.

Climate changes could have an adverse impact on the Company, particularly in hurricane prone or low lying areas near the ocean. At this time, the Company is not able to speculate as to the potential timing or impact from potential global warming and other natural disasters, however the Company believes that it currently has adequate insurance coverage related to natural disasters at the Company’s sites.

Changes in greenhouse gas regulations could impact our operating results.

International agreements and national or regional legislation and regulatory measures to limit greenhouse emissions are currently in various stages of discussion or implementation. These and other greenhouse gas emissions-related laws, policies and regulations may result in substantial capital, compliance, operating and maintenance costs. The level of expenditure required to comply with these laws and regulations is uncertain and is expected to vary depending on the laws enacted in each jurisdiction, our activities in the particular jurisdiction, and market conditions.

The effect of regulation on our financial performance will depend on a number of factors including, not limited to, the sectors covered, the greenhouse gas emissions reductions required by law, the extent to which we would be entitled to receive emission allowance allocations or would need to purchase compliance instruments on the open market or through auctions, the price and availability of emission allowances and credits and the impact of legislation or other regulation on our ability to recover the costs incurred through the pricing of our products and services.

Our business segments are sensitive to economic downturns.

If the general level of economic activity deteriorates from current levels, our customers may delay or cancel new projects. If there is a reduction in demand for our products or services, as a result of a downturn in the general economy, there could be a material adverse effect on price levels and the quantity of goods and services purchased, therefore adversely impacting revenues and results from operations. A number of factors, including financing conditions and potential bankruptcies in the industries we serve, could adversely affect our customers and their ability or willingness to fund capital expenditures in the future and pay for past services. Certain economic conditions may also impact the financial condition of one or more of our key suppliers, which could affect our ability to secure raw materials and components to meet our customers’ demand for our products. Other various factors drive demand for our products and services, including the price of oil, economic forecasts and financial markets. Uncertainty in the global economy and financial markets could continue to impact our customers and could in turn severely impact the demand for spending projects that would result in a reduction in orders for our products and services. All of these factors together could materially impact our business, financial condition, cash flows and results of operations and potentially impact the trading price of our common stock.

International and political events may adversely affect our Energy and Galvanizing Services Segments.

A portion of the revenues from our Energy and Galvanizing Services Segments are from international markets. The occurrence of any of the risks described below could have an adverse effect on our consolidated results of operations, cash flows and financial condition:

• political and economic instability, such as is occurring in Northern Africa, Europe and the Middle East;

• social unrest, acts of terrorism, force majeure, war or other armed conflict;

• inflation;

• currency fluctuation, devaluations and conversion restrictions;

• governmental activities that limit or disrupt markets, restrict payments or limit the movement of funds; and

• trade restrictions and economic embargoes by the United States or other countries.

Fluctuations in the price and supply of raw materials and natural gas for our business segments may adversely affect our operations.

We purchase a wide variety of raw materials for our Energy Segment to manufacture our products, including steel, aluminum and copper. Unanticipated increases in raw material requirements or price increases could increase production costs and adversely affect profitability. In our Galvanizing Services Segment, zinc and natural gas represent a large portion of our cost of sales. The prices of zinc and natural gas are subject to volatility. The following factors, which are beyond our control, affect the price of raw materials and natural gas for our business segments: supply and demand; freight costs and transportation availability; trade duties and taxes; and labor disputes. We seek to maintain operating margins by attempting to increase the price of our products and services in response to increased costs, but may not be successful in passing these price increases through to our customers.

Our volume of fixed-price contracts for our Energy Segment could adversely affect our business.

We currently generate, and expect to continue to generate, a significant portion of our revenues under fixed price contracts. We must estimate the costs of completing a particular project to bid for fixed-price contracts. The actual cost of labor and materials, however, may vary from the costs we originally estimated. Depending on the size of a particular project, variations from estimated cost could have a significant impact on our operating results for any fiscal year.

Our operations could be adversely impacted by the continuing effects from government regulations.

Various regulations have been implemented related to new safety and certification requirements applicable to oil and gas drilling and production activities. While certain new drilling plans and drilling permits have been approved, we cannot predict whether operators will be able to satisfy these requirements. Further, we cannot predict what the continuing effects of government regulations on offshore deepwater drilling projects may have on offshore oil and gas exploration and development activity, or what actions may be taken by our customers or other industry participants in response to these regulations. Changes in laws or regulations regarding offshore oil and gas exploration and development activities and decisions by customers and other industry participants could reduce demand for our services, which would have a negative impact on our operations. Similarly, we cannot accurately predict future regulations by the government in any country in which we operate and how those regulations may affect our ability to perform projects in those regions.

Federal, state and local governments have a major impact on the framework and economics of the US nuclear power industry. Changes in laws or regulations regarding the operations of current nuclear facilities could have an impact on the demand for our products and services, which would have a negative impact on our operations. These sane risks are also associated with foreign nuclear power industries.

New regulations related to conflict minerals could adversely impact our business.

On August 22, 2012, the SEC adopted a rule pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act which establishes annual disclosure and reporting requirements for publicly-traded companies that use tin, tantalum, tungsten or gold (collectively, “conflict minerals”) mined from the Democratic Republic of Congo and adjoining countries in their products. There are costs associated with complying with these disclosure requirements, including for due diligence to determine the source of any conflict minerals used in our products and other potential changes to products, processes, or sources of supply. Despite our due diligence efforts, we may be unable to verify the origin of all conflict minerals used in our products. As a result, we may face reputational and other challenges with customers that require that all of the components incorporated in our products be certified as conflict-free.

Our acquisition strategy involves a number of risks.

We intend to pursue growth through the pursuit of opportunities to acquire companies or assets that will enable us to expand our product and service offerings and to increase our geographic footprint. We routinely review potential acquisitions. However, we may be unable to implement this growth strategy if we cannot reach agreement on potential strategic acquisitions on acceptable terms or for other reasons. Moreover, our acquisition strategy involves certain risks, including:

• difficulties in the integration of operations and systems;

• the termination of relationships by key personnel and customers of the acquired company;

• a failure to add additional employees to handle the increased volume of business;

• additional financial and accounting challenges and complexities in areas such as tax planning, treasury management and financial reporting;

• risks and liabilities from our acquisitions, some of which may not be discovered during our due diligence;

• a disruption of our ongoing business or an inability of our ongoing business to receive sufficient management attention; and

• a failure to realize the cost savings or other financial benefits we anticipated.

Future acquisitions may require us to obtain additional equity or debt financing, which may not be available on attractive terms.

Our use of percentage-of-completion accounting in the Energy Segment could result in a reduction or elimination of previously reported profits.

As discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates” and in the notes to our consolidated financial statements, a portion of our revenues is recognized on the percentage-of-completion method of accounting. The percentage-of-completion accounting practice causes us to recognize contract revenues and earnings ratably over the contract term in proportion to our incurrence of contract costs. The earnings or losses recognized on individual contracts are based on estimates of contract revenues, costs and profitability. Contract losses are recognized in full when determined, and contract profit estimates are adjusted based on ongoing reviews of contract profitability. Actual collection of contract amounts or change orders could differ from estimated amounts and could result in a reduction or elimination of previously recognized earnings. In certain circumstances, it is possible that such adjustments could be significant.

We may not be able to fully realize the revenue value reported in our backlog for our Energy Segment.

We have a backlog of work in our Energy Segment. Orders included in our backlog are represented by customer purchase orders and contracts, which we believe to be firm. Backlog develops as a result of new business secured, which represents the revenue value of new project commitments received by us during a given period. Backlog consists of projects which have either (1) not yet been started or (2) are in progress and are not yet complete. In the latter case, the revenue value reported in backlog is the remaining value associated with work that has not yet been completed. From time to time, projects that were recorded as new business are cancelled. In the event of a project cancellation, we may be reimbursed for certain costs but typically have no contractual right to the total revenue reflected in our backlog. In addition to being unable to recover certain direct costs, we may also incur additional costs resulting from underutilized assets if projects are cancelled.

Our operating results may vary significantly from quarter to quarter.

Our quarterly results may be materially and adversely affected by:

• the timing and volume of work under new agreements;

• general economic conditions;

• the budgetary spending patterns of customers;

• variations in the margins of projects performed during any particular quarter;

• losses experienced in our operations not otherwise covered by insurance;

• a change in the demand or production of our products and our services caused by severe weather conditions;

• a change in the mix of our customers, contracts and business;

• a change in customer delivery schedule;

• increases in design and manufacturing costs; and

• abilities of customers to pay their invoices owed to us.

Accordingly, our operating results in any particular quarter may not be indicative of the results expected for any other quarter or for the entire year.

We may be unsuccessful at generating internal growth.

Our ability to generate internal growth will be affected by, among other factors, our ability to:

• attract new customers, internationally and domestically;

• potential regulatory changes;

• increase the number or size of projects performed for existing customers;

• hire and retain employees; and

• increase volume utilizing our existing facilities.

Many of the factors affecting our ability to generate internal growth may be beyond our control, and we cannot be certain that our strategies will be successful or that we will be able to generate cash flow sufficient to fund our operations and to support internal growth. If we are unsuccessful, we may not be able to achieve internal growth, expand our operations or grow our business.

The departure of key personnel could disrupt our business.

We depend on the continued efforts of our executive officers and senior management. We cannot be certain that any individual will continue in such capacity for any particular period of time. The loss of key personnel, or the inability to hire and retain qualified employees, could negatively impact our ability to manage our business.

Our business requires skilled labor, and we may be unable to attract and retain qualified employees.

Our ability to maintain our productivity and profitability could be limited by an inability to employ, train and retain skilled personnel necessary to meet our requirements. We may experience shortages of qualified personnel. We cannot be certain that we will be able to maintain an adequately skilled labor force necessary to operate efficiently and to support our growth strategy or that our labor expense will not increase as a result of shortage in the supply of skilled personnel. Labor shortages or increased labor costs could impair our ability to maintain our business or grow our revenues.

Actual and potential claims, lawsuits, and proceedings could ultimately reduce our profitability and liquidity and weaken our financial condition.

In the future, the Company could be named as a defendant in legal proceedings claiming damages from us in connection with the operation of our business. Most of the actions against us arise out of the normal course of our performing services or with respect to the equipment we manufacture. We could potentially be a plaintiff in legal proceedings against customers, in which we seek to recover payments of contractual amounts due to us, and claims for increased costs incurred by us. When appropriate, we establish provisions against certain legal exposures, and we adjust such provisions from time to time according to ongoing developments related to each exposure. If in the future our assumptions and estimates related to such exposures prove to be inadequate or incorrect, our consolidated results of operations, cash flows and financial condition could be adversely affected. In addition, claims, lawsuits and proceedings may harm our reputation and possibly divert management resources away from operating our business.

Technological innovations by competitors may make existing products and production methods obsolete.

All of the products manufactured and sold by the Company depend upon the best available technology for success in the marketplace. The competitive environment is highly sensitive to technological innovation in both segments of our business. It is possible for our competitors, both foreign and domestic, to develop new products or production methods, which will make current products or methods obsolete or at least hasten their obsolescence.

Catastrophic events could disrupt our business.

The occurrence of catastrophic events ranging from natural disasters such as earthquakes, tsunamis or hurricanes to epidemics such as health epidemics to acts of war and terrorism could disrupt or delay our ability to complete projects and could potentially expose the Company to third-party liability claims. Such events may or may not be fully covered by our various insurance policies or may be subject to deductibles. In addition, such events could impact our customers and suppliers, resulting in temporary or long-term delays and/or cancellations of orders or raw materials used in normal business operations. These situations are outside the Company’s control and could have a significant adverse impact on the results of operations.

Adoption of new or revised employment and labor laws and regulations could make it easier for our employees to obtain union representation and our business could be adversely impacted.

Other than an immaterial number of employees at four of our wholly-owned subsidiaries, none of our employees are currently represented by unions. However, our U.S. based employees have the right at any time under the National Labor Relations Act to form or affiliate with a union. If some or our entire workforce were to become unionized and the terms of the collective bargaining agreement were significantly different from our current compensation arrangements, it could increase our costs and adversely impact our profitability. Any changes in regulations, the imposition of new regulations, or the enactment of new legislation could have an adverse impact on our business; to the extent it becomes easier for workers to obtain union representation.

AZZ’s flexibility to operate its business could be impacted by provisions in its debt obligations.

AZZ’s debt instruments contain covenants which restrict or prohibit certain actions (“negative covenants”), including, but not limited to, AZZ’s ability to incur debt, create or suffer to exist liens, capital spending limits, engage in certain merger, acquisition, or divestiture actions, or increase dividends beyond a specific level. AZZ’s debt instruments also contain covenants requiring AZZ to, among other things, maintain specified financial ratios (“affirmative covenants”). Failure to comply with these negative covenants and affirmative covenants could result in an event of default that, if not cured or waived, could restrict the Company’s access to liquidity and have a material adverse effect on the Company’s business or prospects. If the Company does not have enough cash to service its debt or fund other liquidity needs, AZZ may be required to take actions such as requesting a waiver from lenders, reducing or delaying capital expenditures, selling assets, restructuring or refinancing all or part of the existing debt, or seeking additional equity capital. AZZ cannot assure that any of these remedies can be effected on commercially reasonable terms or at all.

A failure in our operational systems or cyber security attacks on any of our facilities, or those of third parties, may

affect adversely our financial results.

Our business is dependent upon our operational systems to process a large amount of data and complex transactions. If any of our financial, operational, or other data processing systems fail or have other significant shortcomings, our financial results could be adversely affected. Our financial results could also be adversely affected if an employee causes our operational systems to fail, either as a result of inadvertent error or by deliberately tampering with or manipulating our operational systems. Due to increased technology advances, we have become more reliant on technology to help increase efficiency in our business. We use computer programs to help run our financial and operations sectors, and this may subject our business to increased risks. Any future cyber security attacks that affect our facilities, our customers and any financial data could have a material adverse effect on our business. In addition, cyber attacks on our customer and employee data may result in a financial loss, including potential fines for failure to safeguard data, and may negatively impact our reputation. Third-party systems on which we rely could also suffer operational system failure. Any of these occurrences could disrupt our business, result in potential liability or reputational damage or otherwise have an adverse effect on our financial results.

Item 1B.    Unresolved Staff Comments

None.

8

Item 2.    Properties

The following table sets forth information about the Company’s principal facilities, owned or leased, on February 28, 2015:

Location	Land/Acres	Buildings/Sq. Footage	Segment/Occupant
Crowley, Texas	29.7	201,000	Energy Segment
Houston, Texas	5.4	61,600	Energy Segment
Richland, Mississippi	6.7	60,981	Energy Segment
Pittsburg, Kansas	15.3	87,800	Energy Segment
Medway, Massachusetts	—	(Leased) 85,000	Energy Segment
Fulton, Missouri	—	(Leased) 126,300	Energy Segment
Hamilton, Ontario Canada	—	(Leased) 78,000	Energy Segment
St. Catharines, Ontario Canada *	4.6	47,500	Energy Segment
Fort Worth, Texas	—	(Leased) 201,000	Energy Segment
Norcross, Georgia	5.5	(Leased) 15,000	Energy Segment
Norcross, Georgia	11.0	(Leased) 161,229	Energy Segment
College Station, Texas	—	(Leased) 1,000	Energy Segment
Chanute, Kansas	—	(Leased) 1,000	Energy Segment
Spring, Texas	—	(Leased) 1,000	Energy Segment
York, Pennsylvania	—	(Leased) 4,855	Energy Segment
St. Petersburg, Florida	6.4	(Leased) 26,155	Energy Segment
Edmonton, AB Canada	—	(Leased) 17,680	Energy Segment
Hellevoetsluis, Netherlands	1.6	(Leased) 30,785	Energy Segment
Radom, Poland	—	(Leased) 56,000	Energy Segment
Osasco, Brazil	—	(Leased) 1,000	Energy Segment
Barueri, Brazil	0.4	(Leased) 1,217	Energy Segment
Beaumont, Texas	12.9	33,700	Galvanizing Services Segment
Crowley, Texas	28.5	79,200	Galvanizing Services Segment
Houston, Texas	25.2	61,800	Galvanizing Services Segment
Houston, Texas	23.7	128,764	Galvanizing Services Segment
Hurst, Texas	9.2	51,583	Galvanizing Services Segment
Waskom, Texas	10.6	30,400	Galvanizing Services Segment
Moss Point, Mississippi	13.5	16,000	Galvanizing Services Segment
Richland, Mississippi	5.6	22,800	Galvanizing Services Segment
Citronelle, Alabama	10.8	34,000	Galvanizing Services Segment
Goodyear, Arizona	16.8	36,800	Galvanizing Services Segment
Prairie Grove, Arkansas	11.5	34,000	Galvanizing Services Segment
Belle Chasse, Louisiana	9.5	34,000	Galvanizing Services Segment
Port Allen, Louisiana	22.2	48,700	Galvanizing Services Segment
Cincinnati, Ohio	15.0	81,700	Galvanizing Services Segment
Canton, Ohio	13.6	60,756	Galvanizing Services Segment
Hamilton, Indiana	49.3	110,700	Galvanizing Services Segment
Muncie, Indiana	6.6	50,200	Galvanizing Services Segment
Plymouth, Indiana	40.0	42,900	Galvanizing Services Segment
Joliet, Illinois	12.0	113,900	Galvanizing Services Segment
Dixon, Illinois	21.3	59,600	Galvanizing Services Segment
Peoria, Illinois	7.4	42,600	Galvanizing Services Segment

9

Peoria, Illinois	—	(Leased) 66,400	Galvanizing Services Segment
Winsted, Minnesota	10.4	81,200	Galvanizing Services Segment
Bristol, Virginia	3.6	38,000	Galvanizing Services Segment
Poca, West Virginia	22.0	14,300	Galvanizing Services Segment
Commerce, Colorado	3.9	31,940	Galvanizing Services Segment
Chelsea, Oklahoma	15.0	30,700	Galvanizing Services Segment
Tulsa, Oklahoma	29.8	186,726	Galvanizing Services Segment
Port of Catoosa, Oklahoma	4.0	(Leased) 42,360	Galvanizing Services Segment
Nashville, Tennessee	12.0	27,055	Galvanizing Services Segment
St. Louis, Missouri	5.6	1,800	Galvanizing Services Segment
Kansas City, Missouri	—	(Leased) 18,000	Galvanizing Services Segment
Minneapolis, Minnesota	4.3	67,260	Galvanizing Services Segment
Louisville, Kentucky	5.9	23,007	Galvanizing Services Segment
Montreal, QC Canada	4.4	85,000	Galvanizing Services Segment
Acton, ON Canada	6.3	32,090	Galvanizing Services Segment
Acton, ON Canada	4.1	24,180	Galvanizing Services Segment
Halifax, NS Canada	2.9	33,832	Galvanizing Services Segment
Fort Worth, Texas	—	(Leased) 41,000	Corporate Offices

*St. Catharines, Ontario Canada property currently unoccupied and held for sale.

10

Item 3.    Legal Proceedings

The Company and its subsidiaries are named defendants in various routine lawsuits incidental to our business.  These proceedings include labor and employment claims, use of the Company’s intellectual property, worker’s compensation and various environmental  matters, all arising in the normal course of business.  Although the outcome of these lawsuits or other proceedings cannot be predicted with certainty, and the amount of any potential liability that could arise with respect to such lawsuits or other matters cannot be predicted at this time, management, after consultation with legal counsel, does not expect liabilities, if any, from these claims or proceedings, either individually or in the aggregate, to have a material effect on the Company’s financial position, results of operations or cash flows.

Item 4.    Mine Safety Disclosures

Not applicable.

11

PART II

Item 5.    Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock, $1.00 par value (“Common Stock”), is traded on the New York Stock Exchange under the symbol “AZZ”. The following table sets forth the high and low sales prices of our Common Stock on the New York Stock Exchange on a quarterly basis for each of the two fiscal years ended February 28, 2015 and 2014.

	High		Low		Dividends Declared
2015
First Quarter	$	46.82	$	41.50	$	0.14
Second Quarter	$	49.09	$	41.30	$	0.14
Third Quarter	$	47.67	$	36.84	$	0.15
Fourth Quarter	$	47.96	$	38.64	$	0.15
2014
First Quarter	$	49.10	$	40.71	$	0.14
Second Quarter	$	44.14	$	34.61	$	0.14
Third Quarter	$	49.47	$	37.35	$	0.14
Fourth Quarter	$	49.64	$	40.00	$	0.14

The payment of dividends is within the discretion of our Board and is dependent on our earnings, capital requirements, operating and financial condition and other factors. AZZ has paid dividends quarterly over the last three fiscal years. Dividends paid totaled $14.9 million, $14.3 million, and $13.4 million during fiscal 2015, 2014, and 2013, respectively. Dividend payments are restricted to total payments of $20.0 million per fiscal year based on covenants with the Company's lenders. AZZ fully expects to continue to pay dividends. However, the decision is within the discretion of our Board and we expect any future payments will be made on a quarterly basis.

In January of 2012, our Board authorized the repurchase of up to ten percent of the outstanding shares of our Common Stock. The share repurchase authorization does not have an expiration date, and the amount and prices paid for any future share purchases under the authorization will be based on market conditions and other factors at the time of the purchase. Repurchases under this share repurchase authorization will be made through open market purchases or private transactions in accordance with applicable federal securities laws, including Rule 10b-18 under the Exchange Act. We did not repurchase any shares of Common Stock during the fiscal year ended February 28, 2015.

The approximate number of holders of record of our Common Stock at February 28, 2015 was 890. See Item 12 of this Report for information regarding securities authorized for issuance under equity compensation plans.

12

STOCK PRICE PERFORMANCE GRAPH

The following graph illustrates the five-year cumulative total return on investments in our Common Stock, the CRSP Index for NYSE Stock Market (U.S. Companies) and the CRSP Index for NYSE Stocks (SIC 5000-5099 US Companies). These indices are prepared by Zacks Investment Research, Inc. AZZ’s Common Stock is listed on The New York Stock Exchange and AZZ is engaged in two industry segments. The shareholder return shown below is not necessarily indicative of future performance. Total return, as shown, assumes $100 invested on February 28, 2010, in shares of AZZ Common Stock and each index, all with cash dividends reinvested. The calculations exclude trading commissions and taxes.

Comparison of Five Year-Cumulative Total Returns

Value of $100 Invested on February 28, 2010

For Fiscal Year Ended on the Last Day of February

Legend

Symbol	CRSP Total Returns Index for:	2/10	2/11	2/12	2/13	2/14	2/15
	AZZ incorporated	100.00	139.41	167.73	303.41	305.75	317.10
	CRSP Index for NYSE Stock Market (US Companies)	100.00	123.86	127.79	147.43	181.28	203.46
	CRSP Index for NYSE Stocks (SIC 5000-5099	100.00	132.30	152.47	172.08	216.52	224.22
	US Companies) Wholesale Trade - Durable Goods

Notes:

A. The lines represent monthly index levels derived from compounded daily returns that include all dividends.

B. The indexes are reweighted daily, using the market capitalization on the previous trading day.

C. If the monthly interval, based on the fiscal year-end, is not a trading day, the preceding trading day is used.

D. The index level for all series was set to $100 on 02/28/2010.

See the equity compensation plan information in Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.”

13

Item 6.        Selected Financial Data.

	Fiscal Year
	2015		2014 (a)		2013 (b)		2012 (c)		2011 (d)
	(In thousands, except per share amounts)
Summary of operations:
Net sales	$	816,687	$	751,723	$	570,594	$	469,112	$	380,649
Net income	64,943		59,597		60,456		40,736		34,963
Earnings per share:
Basic earnings per common share	2.53		2.34		2.39		1.62		1.40
Diluted earnings per common share	2.52		2.32		2.37		1.61		1.39
Total assets	936,914		953,253		694,205		606,775		566,525
Total debt	337,848		405,616		210,714		225,000		225,000
Total liabilities	516,862		577,340		360,271		319,166		310,507
Shareholders’ equity	420,052		375,913		333,934		287,609		256,018
Working capital	149,492		152,165		143,533		224,757		225,833
Cash provided by operating activities	118,157		107,275		92,738		64,065		42,085
Capital expenditures	29,377		43,472		24,923		19,784		16,411
Depreciation & amortization	46,089		43,305		29,363		22,595		22,166
Cash dividend per common share	0.58		0.56		0.53		0.50		0.50
Weighted average shares outstanding - basic	25,676		25,514		25,320		25,132		24,923
Weighted average shares outstanding - diluted	25,778		25,693		25,561		25,362		25,201

(a) Includes the acquisition of Aquilex SRO on March 29, 2013. See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations - Year ended February 28, 2014 compared to year ended February 28, 2013.

(b) Includes the acquisition of NLI, on June 1, 2012, the acquisition of Galvcast on October 1, 2012 and the acquisition of G3 on January 2, 2013.

(c) Includes the acquisition of Galvan, on February 1, 2012.

(d) Includes the acquisition of North American Galvanizing & Coatings, Inc., on June 14, 2010.

Item 7.        Management’s Discussion and Analysis of Financial Condition and Results of Operation.

You should read the following discussion together with our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. This discussion contains forward-looking statements about our business and operations. Our actual results may differ materially from those we currently anticipate as a result of the factors we describe under “Risk Factors” and elsewhere in this Annual Report on Form 10-K.

Overview

As mentioned in Item 1, AZZ operates two distinct business segments, the Energy Segment and the Galvanizing Services Segment. Our discussion and analysis of financial condition and results of operations is divided by each of our segments along with corporate costs and other costs not specifically identifiable to a segment. For a reconciliation of segment operating income to pretax income, see Note 13 to the Consolidated Financial Statements. References herein to fiscal years are to the twelve-month periods that end in February of the relevant calendar year. For example, the twelve-month period ended February 28, 2015 is referred to as “fiscal 2015” or “fiscal year 2015.”

For the fiscal year ended February 28, 2015, we recorded net sales of $816.7 million compared to the prior year’s net sales of $751.7 million. Of the total net sales for fiscal 2015, approximately 56.1% of our net sales were generated from the Energy Segment and approximately 43.9% were generated from the Galvanizing Services Segment. Net income for fiscal 2015 was $64.9 million compared to $59.6 million for fiscal 2014. Net income as a percentage of net sales was 8.0% for fiscal 2015 as compared to 7.9% for fiscal 2014. Earnings per share increased by 8.6% to $2.52 per share for fiscal 2015 compared to $2.32 per share for fiscal 2014, on a diluted basis.

14

Results of Operations

Year ended February 28, 2015 compared with year ended February 28, 2014

Backlog

We ended fiscal 2015 with a backlog of $332.6 million, an increase of 2.3% as compared to fiscal 2014. The Company's backlog as of year end pertains to the Energy Segment's operations. The book-to-ship ratio remained relatively flat at 1.01 to 1 for fiscal 2015 and 2014.

The following table reflects bookings and shipments for fiscal 2015 and 2014.

Backlog Table

(In thousands)

	Period Ended			Period Ended
Backlog	2/28/2014	$	325,013	2/28/2013	$	221,714
Bookings		824,269			759,935
Acquired Backlog		—			95,087
Shipments		816,687			751,723
Backlog as reported	2/28/2015	$	332,595	2/28/2014	$	325,013
Book-to-Ship Ratio		1.01			1.01

Net Sales

Our total net sales for fiscal 2015 increased by $65.0 million, or 8.6%, as compared to fiscal 2014.

The following table reflects the breakdown of revenue by segment:

	2015		2014
	(In thousands)
Net sales:
Energy	$	458,339	$	416,106
Galvanizing Services	358,348		335,617
Total Net Sales	$	816,687	$	751,723

Our Energy Segment recorded net sales for fiscal 2015 of $458.3 million, an increase of 10.1% compared to fiscal 2014 net sales of $416.1 million. The increase in net sales for fiscal 2015 was attributable to organic growth in our legacy energy businesses and reporting a full year of results for Aquilex SRO. As noted in Item 1 and in Note 16 of the Notes to the Consolidated Financial Statements, Aquilex SRO was acquired on March 29, 2013, therefore, only eleven months of activity was included within fiscal 2014 results.

Our Galvanizing Services Segment, which consisted of thirty-six hot dip galvanizing facilities as of February 28, 2015, generated net sales of $358.3 million, a 6.8% increase from the prior year’s net sales of $335.6 million. The volume of steel processed for the fiscal year, and selling price increased slightly for fiscal 2015 as compared to fiscal 2014. The acquisition of Zalk Steel along with our Joliet facility operating for a full year during fiscal 2015 also attributed to the increase in net sales and volumes. Joliet had previously been closed as a result of fire damage that occurred in fiscal 2013. Historically, net sales for the Galvanizing Service Segment have followed closely the condition of the industrial sector of the general economy.

Operating Income

Operating income for the Energy Segment decreased $5.8 million, or 13.1%, for fiscal 2015, to $38.7 million as compared to $44.5 million for fiscal 2014. Operating margins for this segment were 8.4% for fiscal 2015 as compared to 10.7% for fiscal 2014. This decrease was generally attributable to charges related to the previously announced realignment described in Note 6 in the Notes to the Consolidated Financial Statements and certain cost overruns on projects at NLI and Aquilex SRO recognized in the second quarter.

15

Operating income for the Galvanizing Service Segment increased $0.8 million, or 0.9%, for fiscal 2015 to $88.6 million as compared to $87.8 million for the prior year. Operating margins were 24.7% for fiscal 2015 as compared to 26.2% for fiscal 2014. Operating income was negatively impacted by higher zinc costs of approximately 5.3%.

Corporate expenses were $20.4 million for fiscal 2015 and $32.2 million for fiscal 2014. During fiscal 2015, the Company recognized a $9.1 million gain from the reversal of the contingent liability associated with the acquisition of NLI. Based on the criteria set forth in the acquisition agreement, we no longer believe an additional payment to the previous owners is probable. During fiscal 2014, the Company incurred $5.4 million in acquisition costs as a result of the acquisition of Aquilex SRO (see Note 16 to the consolidated financial statements). Excluding acquisition costs and the gain from the reversal of the NLI contingency, for the year, general corporate expenses would have totaled $29.5 million and represented 3.6% of sales for fiscal 2015 and $26.8 million or 3.6% of sales for fiscal 2014.

Interest

Interest expense for fiscal 2015 decreased 10.0% to $16.6 million as compared to $18.4 million in fiscal 2014. This decrease is the result of lower borrowings during fiscal 2015 stemming from mandatory and elective principal reductions. For additional information on outstanding debt, see Note 12 of the Notes to the Consolidated Financial Statements. As of February 28, 2015, we had outstanding debt of $337.8 million compared to $405.6 million at the end of fiscal 2014. AZZ's debt to equity ratio was 0.80 to 1 at the end of fiscal 2015 compared to 1.08 to 1 at the end of fiscal 2014.

Net Gain On Sale of Property, Plant and Equipment and Insurance Proceeds

We recorded a net gain of $2.5 million from the sale of plant, property and equipment and insurance proceeds during fiscal 2015. The gain is primarily attributable to the property, plant and equipment lost as a result of the fires at our Joliet, Illinois, Goodyear, Arizona and New Orleans, Louisiana galvanizing facilities, offset by insurance proceeds. During fiscal 2014, the Company recorded a net gain of $8.0 million from the sale of plant, property and equipment and insurance proceeds as the result of the fire that occurred at our galvanizing facility in Joliet, Illinois.

Other (Income) Expense

For fiscal 2015, a total of $2.7 million in expense was recorded to other (income) expense, net. A portion of these expenses was attributable to the cleanup efforts at our New Orleans, Louisiana and Goodyear, Arizona galvanizing facilities. For fiscal 2014, we recorded $4.2 million of other income, net, which was primarily attributable to a lawsuit settlement with a former employee due to a non-compete violation.

Provision For Income Taxes

The provision for income taxes reflected an effective tax rate of 27.9% for fiscal 2015 and 36.5% for fiscal 2014. The Company's tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year, but may not be consistent from year to year. The most significant impacts on the difference between our statutory U.S. federal income tax rate of 35.0% and our effective tax rate are as follows: (i) a tax rate reduction of 3.4% was the result of certain U.S. tax law available in prior years through December 2014 for research and development credits; (ii) a tax rate reduction of 3.4% resulting from release of valuation allowances from prior year net operating loss carryforwards.

A valuation allowance was recorded for net operating losses against certain deferred tax assets for both fiscal 2015 and 2014. We will review the need for these allowances within the next fiscal year. If sufficient evidence becomes available to allow us to reach a conclusion that a significant portion of the valuation allowance will no longer be needed, we will release the valuation allowance.

Year ended February 28, 2014 compared with year ended February 28, 2013

Backlog

We ended fiscal 2014 with a backlog of $325.0 million, an increase of 46.6% as compared to the ending backlog for fiscal 2013 of $221.7 million. The Company's backlog as of year end pertains to the Energy Segment's operations. The book-to-ship ratio remained relatively flat at 1.01 to 1 for fiscal 2014 and 2013. However, the increase in backlog is attributable to the acquisition of Aquilex SRO during fiscal 2014.

The following table reflects bookings and shipments for fiscal 2014 and 2013.

Backlog Table

(In thousands)

16

	Period Ended			Period Ended
Backlog	2/28/2013	$	221,714	2/29/2012	$	138,621
Bookings		759,935			575,196
Acquired Backlog		95,087			78,491
Shipments		751,723			570,594
Backlog as reported	2/28/2014	$	325,013	2/28/2013	$	221,714
Book-to-Ship Ratio		1.01			1.01

Net Sales

Our consolidated net sales for fiscal 2014 increased by $181.1 million, or 31.7%, as compared to fiscal 2013.

The following table reflects the breakdown of revenue by segment:

	2014		2013
	(In thousands)
Net sales:
Energy	$	416,106	$	233,555
Galvanizing Services	335,617		337,039
Total Net Sales	$	751,723	$	570,594

Our Energy Segment recorded net sales for fiscal 2014 of $416.1 million, an increase of 78.2% compared to fiscal 2013 net sales of $233.6 million. The increase in net sales for fiscal 2014 was mainly attributable to the acquisitions of NLI and Aquilex SRO. NLI contributed $51.5 million in net sales or 12.4% of the segment net sales, and Aquilex SRO contributed $200.6 million, or 48.2% of the segment net sales, for fiscal 2014. NLI contributed $45.3 million in net sales or 19.3% of the segment net sales, for fiscal 2013. Without the acquisition of NLI and Aquilex SRO, revenues for this segment would have decreased by 12.9%, due to softness in domestic power generation and gas drilling markets.

Our Galvanizing Services Segment, which consisted of thirty-five hot dip galvanizing facilities as of February 28, 2014, generated net sales of $335.6 million, a 0.4% decrease from the prior year’s revenues of $337.0 million. The volume of steel processed for fiscal 2014 decreased slightly, however, its effect was partially offset by increased selling price as compared to fiscal 2013. Our Canadian operations, which include Galvan, Galvcast and G3, generated $39.9 million of this segment’s net sales for fiscal 2014, as compared to $23.1 million in fiscal 2013. Excluding net sales attributable to the acquisition of the Canadian operations, the net sales for the Galvanizing Services Segment reflected a decline in volume by 7.8% and an increase in selling price by 1.8% for fiscal 2014, as compared to fiscal 2013. The decline in volumes reflected softness in the electrical utility market, led by fewer large scale solar projects and the accompanying transmission lines. In addition, the bridge and highway market segment softened on reduced highway spending. Historically, net sales for the Galvanizing Service Segment have followed closely the condition of the industrial sector of the general economy.

Operating Income

Operating income for the Energy Segment increased $12.4 million, or 38.8%, for fiscal 2014, to $44.5 million as compared to $32.1 million for fiscal 2013. Operating margins for this segment were 10.7% for fiscal 2014 as compared to 13.7% for fiscal 2013. As previously stated, the majority of the increase in operating income for this segment was a result of the acquisition of Aquilex SRO. Aquilex SRO contributed $15.5 million in operating income for fiscal 2014, or 34.8% of the segment's total operating income. NLI contributed $5.4 million in operating income for fiscal 2014, or 12.1% of the segment’s total operating income. Without the amortization of intangibles resulting from the acquisition of NLI and Aquilex SRO, operating income for the segment would have been $57.4 million and operating margins would have been 13.8% for fiscal 2014. Operating margins were lower than prior year for the same period due to lower margins for the newly acquired services business in comparison to the product offering.

Operating income for the Galvanizing Service Segment decreased $0.7 million, or less than 1.0%, for fiscal 2014 to $87.8 million as compared to $88.5 million for the prior year. Operating margins remained relatively flat at 26.2% for fiscal 2014 as compared to 26.3% for fiscal 2013.

17

General corporate expenses were $32.2 million for fiscal 2014 and $22.6 million for fiscal 2013. As a percentage of sales, general corporate expenses were 4.3% for fiscal 2014 as compared to 4.0% in fiscal 2013 primarily due to increased acquisition related costs in fiscal 2014. During fiscal 2014, the Company expensed $5.4 million in costs related to the acquisition of Aquilex SRO compared to $1.7 million of costs in fiscal 2013 related to the acquisitions of NLI, Galvcast, and G3.

Interest

Interest expense for fiscal 2014 increased 40.8% to $18.4 million as compared to $13.1 million in fiscal 2013 primarily due to the increased amount of outstanding debt driven by our acquisitions in fiscal 2014. Debt balances at the end of fiscal 2014 were $405.6 million compared to $210.7 million at the end of fiscal 2013. Our debt as a percentage of shareholders’ equity ratio was 1.08 to 1 at the end of fiscal 2014 compared to 0.63 to 1 at the end of fiscal 2013.

Net Gain On Sale of Property, Plant and Equipment and Insurance Proceeds

For the year ended February 28, 2014, the Company received a portion of the insurance proceeds in the amount of $10.9 million as compared to $13.1 million in fiscal 2013 for the fire that occurred at our galvanizing facility in Joliet, Illinois. Of the $10.9 million received during fiscal 2014, $2.8 million related to business interruption reimbursement, and $8.0 million was reported as an item under Net Gain on Sale of Property, Plant and Equipment and Insurance Proceeds. For fiscal 2013, the Company reported a total of $8.3 million under Net Gain on Sale of Property, Plant and Equipment and Insurance Proceeds, the majority of which were attributable to insurance proceeds from the Joliet fire as noted previously.

Other (Income) Expense

For fiscal 2014 and 2013, the amounts in other income was $4.2 million and $1.2 million, respectively. We recorded other income of $4.2 million in fiscal 2014 for the lawsuit settlement with a former employee due to a non-compete violation and fiscal 2013 was a result primarily of scrap sales.

Provision For Income Taxes

The provision for income taxes reflected an effective tax rate of 36.5% for fiscal 2014 and 35.9% for fiscal 2013. Our tax rate was affected by recurring items, such as tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions. It was also affected by discrete items that may occur in any given year, but are not consistent from year to year. There was not a significant impact on the difference between our statutory U.S. federal income tax rate of 35.0% and our effective tax rate.

Liquidity and Capital Resources

We have historically met our cash needs through a combination of cash flows from operating activities along with bank and bond market debt. Our cash requirements are generally for operating activities, cash dividend payments, capital improvements, debt repayment and acquisitions. We believe that our cash position, cash flows from operating activities and our expectation of continuing availability to draw upon our credit facilities are sufficient to meet our cash flow needs for the foreseeable future.

Net cash provided by operating activities for fiscal 2015 was $118.2 million compared to $107.3 million provided by operating activities for fiscal 2014. The increase in cash provided by operating activities for fiscal 2015 is primarily attributable to higher earnings and less impact during the year by changes in working capital. During fiscal 2014, the impact of changes in working capital was much greater due to the acquisition of Aquilex SRO and the fire at the Joliet Facility.

Net cash used in investing activities for fiscal 2015 was $39.6 million compared to net cash used in investing activities of $311.0 million for fiscal 2014. The decrease in cash used during fiscal 2015 was attributable to the acquisition of Aquilex SRO, insurance proceeds received for the Joliet fire, and higher capital expenditures in fiscal 2014.

Net cash used in financing activities for fiscal 2015 was $82.4 million compared to net cash provided by financing activities of $176.3 million for fiscal 2014. The increase in cash used during fiscal 2015 was primarily attributable to reduced borrowings under our debt agreements.

We consider the undistributed earnings of our foreign subsidiaries as of fiscal year ended February 28, 2015, to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon. Should the Company decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the United States. As of fiscal year ended February 28, 2015, the amount of cash associated with indefinitely reinvested foreign earnings was approximately $8.8 million. We have not, nor do we anticipate the need to repatriate

18

earnings to the United States to satisfy domestic liquidity needs arising in the ordinary course of business including liquidity needs associated with our domestic debt service requirements. However, the Company may repatriate some cash to the U.S. through settlement of inter-company loans or return of capital distributions in a tax efficient manner.

During fiscal 2015, we spent $40.9 million on capital expenditures including acquisitions, net of cash. The breakdown of capital spending by segment for fiscal 2015, 2014 and 2013 can be found in Note 13 to the Consolidated Financial Statements.

On March 27, 2013, we entered into a Credit Agreement (the “Credit Agreement”) with Bank of America and other lenders. The Credit Agreement provided for a $75.0 million term facility and a $225.0 million revolving credit facility that included a $75.0 million “accordion” feature. The Credit Agreement is used to provide for working capital needs, capital improvements, dividends, future acquisitions and letter of credit needs.

The Credit Agreement provides various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $230.0 million, plus 50.0% of future net income, b) maintain on a consolidated basis a Leverage Ratio (as defined in the Credit Agreement) not to exceed 3.25:1.0, c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.75:1.0 and d) not to make Capital Expenditures (as defined in the Credit Agreement) on a consolidated basis in an amount in excess of $60.0 million during the fiscal year ended February 28, 2014 and $50.0 million during any subsequent fiscal year.

Interest rates for borrowings under the Credit Agreement are based on either a Eurodollar Rate or a Base Rate plus a margin ranging from 1.0% to 2.0% depending on our Leverage Ratio. The Eurodollar Rate is defined as LIBOR for a term equivalent to the borrowing term (or other similar interbank rates if LIBOR is unavailable). The Base Rate is defined as the highest of the applicable Fed Funds rate plus 0.50%, the Prime rate, or the Eurodollar Rate plus 1.0% at the time of borrowing. The Credit Agreement also carries a Commitment Fee for the unfunded portion ranging from 0.20% to 0.30% per annum, depending on our Leverage Ratio.

The $75.0 million term facility requires quarterly principal and interest payments commencing on June 30, 2013 until March 27, 2018, at which time the Credit Agreement matures.

On March 31, 2008, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) pursuant to which the Company issued $100.0 million aggregate principal amount of its 6.24% unsecured Senior Notes (the “2008 Notes”) due March 31, 2018 through a private placement (the “2008 Note Offering”). Pursuant to the Note Purchase Agreement, the Company's payment obligations with respect to the 2008 Notes may be accelerated upon any Event of Default, as defined in the Note Purchase Agreement.

The Company entered into an additional Note Purchase Agreement on January 21, 2011 (the “2011 Agreement”), pursuant to which the Company issued $125.0 million aggregate principal amount of its 5.42% unsecured Senior Notes (the “2011 Notes”), due in January of 2021, through a private placement (the “2011 Note Offering”). Pursuant to the 2011 Agreement, the Company's payment obligations with respect to the 2011 Notes may be accelerated under certain circumstances.

The 2008 Notes and the 2011 Notes each provide for various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $116.9 million plus 50.0% of future net income; b) maintain a ratio of indebtedness to EBITDA (as defined in Note Purchase Agreement) not to exceed 3.25:1.00; c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Note Purchase Agreement) of at least 2.0:1.0; d) not at any time permit the aggregate amount of all Priority Indebtedness (as defined in the Note Purchase Agreement) to exceed 10.0% of Consolidated Net Worth (as defined in the Note Purchase Agreement).

As of February 28, 2015, the Company was in compliance with all of its debt covenants.

Historically, we have not experienced a significant impact on our operations from increases in general inflation other than for specific commodities. We have exposure to commodity price increases in both segments of our business, primarily copper, aluminum, steel and nickel based alloys in the Energy Segment and zinc and natural gas in the Galvanizing Services Segment. We attempt to minimize these increases through escalation clauses in customer contracts for copper, aluminum, steel and nickel based alloys, when market conditions allow and through fixed cost contract purchases on zinc. In addition to these measures, we attempt to recover other cost increases through improvements to our manufacturing process, supply chain management, and through increases in prices where competitively feasible.

19

Off Balance Sheet Transactions and Related Matters

There are no off-balance sheet transactions, arrangements, obligations (including contingent obligations) other than the contingent obligations as described in the contingent liability section, or other relationships of the Company with unconsolidated entities or other persons that have, or may have, a material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Contractual Commitments

The following summarizes the Company’s operating leases, debt and interest payments for the next five fiscal years and thereafter.

	Operating Leases		Debt		Interest		Total
	(In thousands)
2016	$	6,955	$	21,866	$	13,332	$	42,153
2017	6,415		23,192		12,283		41,890
2018	4,561		16,629		11,247		32,437
2019	3,257		151,161		7,973		162,391
2020	1,204		—		6,775		7,979
Thereafter	2,758		125,000		6,775		134,533
Total	$	25,150	$	337,848	$	58,385	$	421,383

Commodity pricing

We have no contracted commitments for any commodities including steel, aluminum, natural gas, nickel based alloys, copper, zinc or any other commodity, except for those entered into under the normal course of business.

Other

At February 28, 2015, the Company had outstanding letters of credit in the amount of $13.0 million. These letters of credit are issued to a portion of the Company’s customers in our Energy Segment to cover any potential warranty costs, performance issues, insurance reserves and bid bonds. In addition, as of February 28, 2015, a warranty reserve in the amount of $2.3 million has been provided to offset any future warranty claims.

The Company has been named as a defendant in certain lawsuits that arose in the normal course of business. In the opinion of management, after consulting with legal counsel, the potential liabilities, if any, resulting from these matters would not have a material effect on our financial position, results of operations or cash flow.

Critical Accounting Policies and Estimates

The preparation of the consolidated financial statements requires us to make estimates that affect the reported value of assets, liabilities, revenues and expenses. Our estimates are based on historical experience and various other factors that we believe are reasonable under the circumstances and form the basis for our conclusions. We continually evaluate the information used to make these estimates as business and economic conditions change. Accounting policies and estimates considered most critical are allowances for doubtful accounts, accruals for contingent liabilities, revenue recognition, impairment of long-lived assets, identifiable intangible assets and goodwill, accounting for income taxes, stock options, stock appreciation rights and restricted stock units. Actual results may differ from these estimates under different assumptions or conditions. The development and selection of the critical accounting policies and the related disclosures below have been reviewed with the Audit Committee of the Board of Directors. More information regarding significant accounting policies can be found in Note 1 to the Consolidated Financial Statements.

Allowance for Doubtful Accounts – The carrying value of our accounts receivable is continually evaluated based on the likelihood of collection. An allowance is maintained for estimated losses resulting from our customers’ inability to make required payments. The allowance is determined by historical experience of uncollected accounts, the level of past due accounts, overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and future expectations of conditions that might impact the collectability of accounts receivable. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances could be required.

20

Accruals for Contingent Liabilities - The amounts we record for estimated claims, such as self-insurance programs, warranty, environmental and other contingent liabilities, requires us to make judgments regarding the amount of expenses that will ultimately be incurred. We use past history and experience and other specific circumstances surrounding these claims in evaluating the amount of liability that should be recorded. Actual results may be different than what we estimate. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015.

Revenue Recognition – Revenue is recognized for the Energy Segment upon transfer of title and risk to customers, or based upon the percentage of completion method of accounting for electrical products built to customer specifications and for services under long term contracts. We typically recognize revenue for the Galvanizing Service Segment at completion of the service unless we specifically agree with the customer to hold its material for a predetermined period of time after the completion of the galvanizing process and, in that circumstance, we invoice and recognize revenue upon shipment. Customer advanced payments presented in the balance sheets arise from advanced payments received from our customers prior to shipment of the product and are not related to revenue recognized under the percentage of completion method. The extent of progress for revenue recognized using the percentage of completion method is measured by the ratio of contract costs incurred to date to total estimated contract costs at completion. Contract costs include direct labor and material and certain indirect costs. Selling, general and administrative costs are charged to expense as incurred. Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are able to be determined. The assumptions made in determining the estimated cost could differ from actual performance resulting in a different outcome for profits or losses than anticipated.

Impairment of Long-Lived Assets, Identifiable Intangible Assets and Goodwill – We record impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than the carrying amounts of those assets. In those situations, impairment losses on long-lived assets are measured based on the excess of the carrying amount over the asset’s fair value, generally determined based upon discounted estimates of future cash flows. A significant change in events, circumstances or projected cash flows could result in an impairment of long-lived assets, including identifiable intangible assets. An annual impairment test of goodwill is performed in the fourth quarter of each fiscal year. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we will determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market, changes in economic conditions of these various markets, raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. Our testing concluded goodwill was not reasonably likely to be impaired.

Accounting for Income Taxes – Our income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in both the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax expense. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future.

In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state, federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. GAAP states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, on the basis of the technical merits. We may (1) record unrecognized tax benefits as liabilities in accordance with GAAP and (2) adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available.

21

We currently do not record unrecognized tax benefits related to U.S. federal, state or, foreign tax exposure. We continue to review our tax exposure for any significant need to record unrecognized tax benefits in the future.

We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings. We have not recorded a deferred tax liability related to the U.S. federal and state income taxes and foreign withholding taxes on approximately $17.5 million of undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. If we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the United States.

Stock Options, Stock Appreciation Rights and Restricted Stock Units – Our employees and directors are periodically granted restricted stock units, stock options or stock appreciation rights by the Compensation Committee of the Board of Directors. The compensation cost of all employee stock-based compensation awards is measured based on the grant-date fair value of those awards and that cost is recorded as compensation expense over the period during which the employee is required to perform service in exchange for the award (generally over the vesting period of the award).

The valuation of stock based compensation awards, with the exception of restricted stock units, is complex in that there are a number of variables included in the calculation of the value of the award:

• Volatility of our stock price

• Expected term of the option or stock appreciation rights

• Expected dividend yield

• Risk-free interest rate over the expected term

• Expected forfeitures

We have elected to use a Black-Scholes pricing model in the valuation of our stock options and stock appreciation rights. Restricted stock units are valued at the stock price on the date of grant.

These variables are developed using a combination of our internal data with respect to stock price volatility and exercise behavior of option holders and information from outside sources. The development of each of these variables requires a significant amount of judgment. Changes in the values of the above variables would result in different option valuations and, therefore, different amounts of compensation cost.

Item 7A.        Quantitative and Qualitative Disclosures About Market Risk.

Market risk affecting our operations results primarily from changes in interest rates and commodity prices. As of February 28, 2015, we had no involvement with derivative financial instruments.

In the Energy Segment, we have exposure to commodity pricing for copper, aluminum, steel and nickel based alloys. Increases in price for these items are normally managed through escalation clauses in our customers' contracts, although during difficult market conditions customers' may resist these escalation clauses. In addition, we attempt to enter into firm pricing contracts with our vendors on material at the time we receive orders from our customers to minimize risk. We manage our exposures to commodity prices, primarily zinc used in our Galvanizing Services Segment, by utilizing agreements with zinc suppliers that include protective caps and fixed contracts to guard against escalating commodity prices. We also secure firm pricing for natural gas supplies with individual utilities when possible. We believe these agreements ensure adequate supplies and partially offset exposure to commodity price escalation.

As of February 28, 2015, the Company had exposure to foreign currency exchange rates related to our operations in Canada, China, Brazil, Poland, and the Netherlands.

We do not believe that a hypothetical change of 10% of the interest rate or currency exchange rate that are currently in effect or a change of 10% of commodity prices would have a significant adverse effect on our results of operations, financial position, or cash flows as long as we are able to pass along the increases in commodity prices to our customers. However, there can be no assurance that either interest rates, exchange rates or commodity prices will not change in excess of the 10% hypothetical amount or that we would be able to pass along rising costs of commodity prices to our customers, and such hypothetical change could have an adverse effect on our results of operations, financial position, and cash flows.

Item 8.        Consolidated Financial Statements and Supplementary Data.

22

Index to Consolidated Financial Statements and Schedules

		Page
1.	Consolidated Financial Statements
	Report of Independent Registered Public Accounting Firm	24
	Consolidated Statements of Income for the years ended February 28, 2015, February 28 2014, and February 28, 2013	25
	Consolidated Statements of Comprehensive Income for the years ended February 28, 2015, February 28, 2014, and February 28, 2013	26
	Consolidated Balance Sheets as of February 28, 2015 and February 28, 2014	27
	Consolidated Statements of Cash Flows for the years ended February 28, 2015, February 28 2014 and February 28, 2013	28
	Consolidated Statements of Shareholders’ Equity for the years ended February 28, 2015, February 28 2014 and February 28, 2013	30
	Notes to Consolidated Financial Statements	31
2.	Consolidated Financial Statement Schedule
	Schedule II – Valuation and Qualifying Accounts and Reserves	50

23

Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders

AZZ incorporated

Fort Worth, Texas

We have audited the accompanying consolidated balance sheets of AZZ incorporated as of February 28, 2015 and 2014 and the related consolidated statements of income and comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period ended February 28, 2015. Our audits also included the financial statement schedule listed in Item 15 of this Form 10-K. We have also audited AZZ incorporated’s internal control over financial reporting as of February 28, 2015, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). AZZ incorporated’s management is responsible for these financial statements, financial statement schedule, maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on these financial statements, financial statement schedule and to express an opinion on the company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and the schedule are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of AZZ incorporated as of February 28, 2015 and 2013 and the results of its operations and its cash flows for each of the three years in the period ended February 28, 2015, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, AZZ incorporated maintained, in all material respects, effective internal control over financial reporting as of February 28, 2015, based on the COSO criteria.

Also in our opinion, the financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Zalk Steel & Supply Co., whose acquisition was completed on June 30, 2014. Zalk Steel & Supply Co. is included in the consolidated balance sheet of AZZ incorporated as of February 28, 2015 and the related consolidated statements of income and comprehensive income, shareholders’ equity, and cash flows for the year then ended. Zalk Steel & Supply Co. constituted approximately 1.16% of the Company’s total assets as of February 28, 2015 and 0.5% and 0.94% of revenues and net income, respectively, for the year then ended. Management did not assess the effectiveness of internal control over financial reporting of Zalk Steel & Supply Co. because of the timing of the acquisition. Our audit of internal control over financial reporting of AZZ incorporated also did not include an evaluation of the internal control over financial reporting of Zalk Steel & Supply Co.

/s/ BDO USA, LLP

Dallas, Texas

April 22, 2015

24

AZZ incorporated

CONSOLIDATED STATEMENTS OF INCOME

	Year Ended February 28,
	2015			2014			2013
	(In thousands, except per share data)
Net Sales	$	816,687		$	751,723		$	570,594
Cost of Sales	610,991			546,018			406,421
Gross Profit	205,696			205,705			164,173
Selling, General and Administrative	98,871			105,591			66,189
Operating Income	106,825			100,114			97,984
Interest Expense	16,561			18,407			13,073
Net Gain On Sale of Property, Plant and Equipment, and Insurance Proceeds	(2,525		)	(8,039		)	(8,303		)
Other Expense (Income) - net	2,659			(4,165		)	(1,155		)
Income Before Income Taxes	90,130			93,911			94,369
Income Tax Expense	25,187			34,314			33,913
Net Income	$	64,943		$	59,597		$	60,456
Earnings Per Common Share
Basic Earnings Per Share	$	2.53		$	2.34		$	2.39
Diluted Earnings Per Share	$	2.52		$	2.32		$	2.37
Weighted Average Shares Outstanding
Basic	25,676			25,514			25,320
Diluted	25,778			25,693			25,561

The accompanying notes are an integral part of the consolidated financial statements.

25

AZZ incorporated

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended February 28,
	2015			2014			2013
	(In thousands)
Net Income	$	64,943		$	59,597		$	60,456
Other Comprehensive Loss:
Foreign Currency Translation Adjustments -
Unrealized Translation Losses	(11,760		)	(7,775		)	(4,439		)
Interest Rate Swap, Net of Income Tax of $29, $29 and $29, respectively.	(54		)	(54		)	(54		)
Other Comprehensive Loss	(11,814		)	(7,829		)	(4,493		)
Comprehensive Income	$	53,129		$	51,768		$	55,963

The accompanying notes are an integral part of the consolidated financial statements.

26

AZZ incorporated

CONSOLIDATED BALANCE SHEETS

	February 28, 2015			February 28, 2014
Assets	(In thousands, except per share data)
Current assets:
Cash and cash equivalents	$	22,527		$	27,565
Accounts receivable, net of allowance for doubtful accounts of $1,472 and $1,744 in 2015 and 2014, respectively	125,638			116,128
Inventories - net	107,697			107,581
Costs and estimated earnings in excess of billings on uncompleted contracts	33,676			27,222
Deferred income tax assets	4,526			7,801
Prepaid expenses and other	4,570			9,884
Total current assets	298,634			296,181
Property, plant, and equipment, net	196,583			197,639
Goodwill	279,074			278,556
Intangibles and other assets	162,623			180,877
	$	936,914		$	953,253
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	49,580		$	38,833
Income tax payable	2,888			5,359
Accrued salaries and wages	17,046			17,760
Other accrued liabilities	18,287			17,155
Customer advance payment	28,401			33,733
Profit sharing	6,400			7,310
Billings in excess of costs and estimated earnings on uncompleted contracts	4,674			3,018
Debt due within one year	21,866			20,848
Total current liabilities	149,142			144,016
Long-term accrued liability due after one year	—			9,121
Debt due after one year	315,982			384,768
Deferred income tax liabilities	51,738			39,435
Total liabilities	516,862			577,340
Commitments and Contingencies
Shareholders’ equity:
Common Stock, $1.00 par value; 100,000 shares authorized; 25,732 shares issued and outstanding at February 28, 2015 and 25,577 at February 28, 2014	25,732			25,577
Capital in excess of par value	27,706			21,954
Retained earnings	389,446			339,400
Accumulated other comprehensive loss	(22,832		)	(11,018		)
Total shareholders’ equity	420,052			375,913
	$	936,914		$	953,253

The accompanying notes are an integral part of the consolidated financial statements.

27

AZZ incorporated

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended February 28,
	2015			2014			2013
	(In thousands)
Cash flows from operating activities:
Net income	$	64,943		$	59,597		$	60,456
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	46,089			43,305			29,363
Deferred income taxes	15,818			842			3,366
Net loss on disposition of property, plant & equipment due to realignment	2,651			—			—
Net gain on sale of property, plant & equipment and insurance proceeds	(2,525		)	(8,039		)	(8,303		)
Share-based compensation expense	4,080			3,703			3,175
Amortization of deferred borrowing costs	1,431			1,421			287
Provision for doubtful accounts	458			(116		)	446
Effects of changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(9,382		)	35,955			(11,599		)
Inventories	(879		)	(6,209		)	(4,454		)
Prepaid expenses and other assets	5,543			(6,590		)	(2,244		)
Net change in billings related to costs and estimated earnings on uncompleted contracts	(5,635		)	(9,732		)	1,942
Accounts payable	11,025			(4,150		)	958
Other accrued liabilities and income taxes payable	(15,460		)	(2,712		)	19,345
Net cash provided by operating activities:	118,157			107,275			92,738
Cash flows from investing activities:
Proceeds from the sale or insurance settlement of property, plant, and equipment	1,330			8,205			11,839
Acquisition of subsidiaries, net of cash acquired	(11,518		)	(275,702		)	(137,058		)
Purchases of property, plant and equipment	(29,377		)	(43,472		)	(24,923		)
Net cash used in investing activities:	(39,565		)	(310,969		)	(150,142		)
Cash flows from financing activities:
Proceeds from exercise of stock options and stock appreciation rights	—			—			16
Excess tax benefits from stock options and stock appreciation rights	259			1,602			1,283
Proceeds from revolving loan	10,977			197,000			—
Payments on revolving loan	(57,905		)	(60,000		)	—
Proceeds from long-term debt	—			75,000			—
Payments on long-term debt	(20,848		)	(17,098		)	(18,136		)
Debt acquisition costs	—			(5,881		)	(100		)
Payment of dividends	(14,897		)	(14,290		)	(13,423		)
Net cash (used in) provided by financing activities:	(82,414		)	176,333			(30,360		)
Effect of exchange rate changes on cash and cash equivalents	(1,216		)	(672		)	59
Net change in cash and cash equivalents	(5,038		)	(28,033		)	(87,705		)
Cash and cash equivalents, beginning of year	27,565			55,598			143,303

28

Cash and cash equivalents, end of year	$	22,527	$	27,565	$	55,598
Supplemental disclosures of cash flow information:
Cash paid for interest	$	15,613	$	16,500	$	13,108
Cash paid for income taxes	$	15,264	$	26,332	$	30,967

The accompanying notes are an integral part of the consolidated financial statements.

29

AZZ incorporated

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

	Common Stock			Capital in excess of par value			Retained earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
	Shares	Amount
	(In thousands)
Balance at February 29, 2012	25,218	$	25,218	$	14,201		$	247,060		$	1,304		$	(174	)	$	287,609
Exercise of stock options	7	7		8												15
Stock compensation	14	14		3,161												3,175
Restricted Stock Units				(517		)							104			(413		)
Stock issued for SARs	90	90		(1,297		)							15			(1,192		)
Employee Stock Purchase Plan	47	47		814									55			916
Federal income tax deducted on stock options				1,283												1,283
Cash dividend paid							(13,423		)							(13,423		)
Net income							60,456									60,456
Foreign currency translation										(4,439		)				(4,439		)
Interest rate swap, net of $29 of income tax										(54		)				(54		)
Balance at February 28, 2013	25,376	$	25,376	$	17,653		$	294,093		$	(3,189	)	$	—		$	333,933
Stock compensation	14	14		3,689												3,703
Restricted Stock Units	56	56		(1,393		)										(1,337		)
Stock issued for SARs	68	68		(1,117		)										(1,049		)
Employee Stock Purchase Plan	63	63		1,519												1,582
Federal income tax deducted on stock options				1,603												1,603
Cash dividend paid							(14,290		)							(14,290		)
Net income							59,597									59,597
Foreign currency translation										(7,775		)				(7,775		)
Interest rate swap, net of $29 of income tax										(54		)				(54		)
Balance at February 28, 2014	25,577	$	25,577	$	21,954		$	339,400		$	(11,018	)	$	—		$	375,913
Stock compensation	16	16		4,064												4,080
Restricted Stock Units	21	21		(497		)										(476		)
Stock issued for SARs	40	40		(371		)										(331		)
Employee Stock Purchase Plan	78	78		2,297												2,375
Federal income tax deducted on stock options				259												259
Cash dividend paid							(14,897		)							(14,897		)
Net income							64,943									64,943
Foreign currency translation										(11,760		)				(11,760		)
Interest rate swap, net of $29 of income tax										(54		)				(54		)
Balance at February 28, 2015	25,732	$	25,732	$	27,706		$	389,446		$	(22,832	)	$	—		$	420,052

The accompanying notes are an integral part of the consolidated financial statements.

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AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.    Summary of significant accounting policies

Organization-AZZ incorporated (the “Company” “AZZ” or “We”) operates primarily in the United States of America and Canada and has recently begun operating in China, Brazil, Poland and the Netherlands. Information about the Company's operations by segment is included in Note 13 to the consolidated financial statements.

Basis of consolidation—The consolidated financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates—The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentrations of credit risk—Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable.

The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the United States and Canada, as well as Europe, China and Brazil. The Company's policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company's banking relationships and has not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the Company’s diversity by virtue of two operating segments, the number of customers, and the absence of a concentration of trade accounts receivable in a small number of customers. The Company performs continuous evaluations of the collectability of trade accounts receivable and allowance for doubtful accounts based upon historical losses, economic conditions and customer specific events. After all collection efforts are exhausted and an account is deemed uncollectible, it is written off against the allowance for doubtful accounts. Accounts receivable written off, net of recoveries, in fiscal 2015, 2014 and 2013 were approximately $0.7 million, $0.3 million and $0.3 million, respectively. Collateral is usually not required from customers as a condition of sale.

Revenue recognition—The Company recognizes revenue for the Energy Segment upon transfer of title and risk to customer or based upon the percentage of completion method of accounting for electrical products built to customer specifications and services under long-term contracts. We typically recognize revenue for the Galvanizing Services Segment at completion of the service unless we specifically agree with the customer to hold its material for a predetermined period of time after the completion of the galvanizing process and, in that circumstance, we invoice and recognize revenue upon shipment. Customer advanced payments presented in the balance sheets arise from advanced payments received from our customers prior to shipment of the product and are not related to revenue recognized under the percentage of completion method. The extent of progress for revenue recognized using the percentage of completion method is measured by the ratio of contract costs incurred to date to total estimated contract costs at completion. Contract costs include direct labor and material and certain indirect costs. Selling, general and administrative costs are charged to expense as incurred.

Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are able to be determined. The assumptions made in determining the estimated cost could differ from actual performance resulting in a different outcome for profits or losses than anticipated.

Cash and cash equivalents—The Company considers cash and cash equivalents to include cash on hand, deposits with banks and all highly liquid investments with an original maturity of three months or less.

Inventories—Cost is determined principally using a weighted-average method for the Energy Segment and the first-in-first-out (FIFO) method for the Galvanizing Services Segment.

Property, plant and equipment—For financial reporting purposes, depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Buildings and structures	10-25 years
Machinery and equipment	3-15 years
Furniture and fixtures	3-15 years
Automotive equipment	3 years
Computers and software	3 years

Maintenance and repairs are charged to expense as incurred; renewals and betterments that significantly extend the useful life of the asset are capitalized.

Long-lived assets, intangible assets and goodwill—Purchased intangible assets included on the balance sheets are comprised of customer lists, backlogs, engineering drawings and non-compete agreements. Such intangible assets are being amortized using the straight-line method over the estimated useful lives of the assets ranging from two to nineteen years. The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value. For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. As of February 28, 2015, no impairment of long-lived assets, intangible assets or goodwill was determined.

Debt issue costs—Debt issue costs, included in other assets, are amortized using the effective interest rate method over the term of the debt.

Income taxes—We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

As applicable, we record uncertain tax positions in accordance with GAAP on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We currently do not have any unrecognized tax benefits to record related to U.S. federal, state or, foreign tax exposure. We continue to review our tax exposure for any significant need to record unrecognized tax benefits in the future.

The Company is subject to taxation in the U.S. and various state, provincial and local and foreign jurisdictions. With few exceptions, as of fiscal 2015, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2012.

Share-based compensation—The Company has granted stock options, stock appreciation rights or restricted stock units for a fixed number of shares to employees and directors. A discussion of share-based compensation can be found in Note 11 to the Consolidated Financial Statements.

Financial instruments—Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2, or 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Hierarchy Level 2 inputs are inputs other than quoted prices included with Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt. Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our outstanding Senior Notes. For fiscal 2015 and 2014 the fair value of our senior outstanding notes, as described in Note 12 to the Consolidated Financial Statements, was approximately $164.4 million and $179.4 million, respectively. These fair values were determined using the discounted cash flow at the market rate as well as the applicable market interest rates classified as Level 2 inputs. During fiscal 2015 a principal payment was made in the amount of $14.3 million related to the $100.0 million unsecured Senior Notes due March 31, 2018, which accounts for a portion of the decrease in fair value for the compared periods in conjunction with lower market interest rates.

Derivative financial instruments—From time to time, the Company uses derivatives to manage interest rate risk. The Company’s policy is to use derivatives for risk management purposes only, which includes maintaining the ratio between the Company’s fixed and floating rate debt obligations that management deems appropriate, and prohibits entering into such contracts for trading purposes. The Company enters into derivatives only with counterparties (primarily financial institutions) which have substantial financial wherewithal to minimize credit risk. As the result of the recent global financial crisis, a number of financial institutions have failed or required government assistance, and counterparties considered substantial may develop credit risk. The amount of gains or losses from the use of derivative financial instruments has not been and is not expected to be material to the Company’s consolidated financial statements. As of February 28, 2015, the Company had no derivative financial instruments.

Warranty reserves—Within other accrued liabilities, a reserve has been established to provide for the estimated future cost of warranties on a portion of the Company’s delivered products. Management periodically reviews the reserves, and adjustments are made accordingly. A provision for warranty on products is made on the basis of the Company’s historical experience and identified warranty issues. Warranties cover such factors as non-conformance to specifications and defects in material and workmanship.

The following is a roll-forward of amounts accrued for warranties (in thousands):

Balance at February 29, 2012	$	1,670
Warranty costs incurred	(2,026		)
Additions charged to income	2,429
Balance at February 28, 2013	$	2,073
Warranty costs incurred	(2,246		)
Additions charged to income	1,511
Balance at February 28, 2014	$	1,338
Warranty costs incurred	(1,294		)
Additions charged to income	2,243
Balance at February 28, 2015	$	2,287

Accumulated Other Comprehensive Income (Loss)—On January 21, 2011, we entered into a Note Purchase Agreement, (the “2011 Agreement”) and incurred fixed rate, long-term indebtedness of $125.0 million in relation to the 2011 Agreement. See Note 10 to the Consolidated Financial Statements. In anticipation of the issuance of Senior Notes thereunder, we entered into a treasury lock hedging transaction with Bank of America Merrill Lynch (BAML) in order to eliminate the variability of cash flows on the forecasted fixed rate coupon of the debt during the pre-issuance period. The hedging transaction settled during the Company’s third fiscal quarter of fiscal 2011, and the Company received a payment from BAML in the amount of $0.8 million resulting therefrom. The notional value of the hedge was $75.0 million and qualified for hedge accounting as a cash flow hedge. The gain on the settlement was recorded as a component of Accumulated Other Comprehensive Income (Loss) and is being amortized to interest expense in the form of a credit over the life of the 10 year loan. Amortization of this gain to interest expense was recorded in a credit of $0.1 million for fiscal 2015, 2014, and 2013.

Accumulated Other Comprehensive Income (Loss) also includes foreign currency translation adjustments from our foreign subsidiaries consisting of Aquilex SRO, AZZ Trading (Shanghai), Blenkhorn and Sawle, Galvan, Galvcast and G3.

Foreign Currency Translation—The local currency is the functional currency for the Company’s foreign operations. Related assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet date, and revenues and expenses are translated at weighted-average exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income (loss).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accruals for Contingent Liabilities— The amounts we record for estimated claims, such as self-insurance programs, warranty, environmental and other contingent liabilities, requires us to make judgments regarding the amount of expenses that will ultimately be incurred. We use past history and experience and other specific circumstances surrounding these claims in evaluating the amount of liability that should be recorded. Actual results may be different than what we estimate. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015.

2.    Inventories

Inventories (net) consisted of the following:

	As of February 28,
	2015		2014
	(In thousands)
Raw materials	$	62,794	$	64,817
Work-in-process	42,001		39,781
Finished goods	2,902		2,983
	$	107,697	$	107,581

3.    Property, Plant, and Equipment

Following is a summary of property, plant and equipment:

	2015			2014
	(In thousands)
Land	$	16,004		$	15,116
Building and structures	122,539			117,765
Machinery and equipment	184,921			175,955
Furniture, fixtures, software and computers	21,716			20,497
Automotive equipment	2,351			2,429
Construction in progress	12,193			8,277
	359,724			340,039
Less accumulated depreciation	(163,141		)	(142,400		)
Net property, plant, and equipment	$	196,583		$	197,639

Depreciation expense was $28.1 million, $25.1 million, and $19.4 million for fiscal 2015, 2014, and 2013, respectively.

4.    Costs and estimated earnings on uncompleted contracts

Costs and estimated earnings on uncompleted contracts consisted of the following:

	2015		2014
	(In thousands)
Costs incurred on uncompleted contracts	$	126,882	$	158,224
Estimated earnings	50,487		65,063
	177,369		223,287
Less billings to date	148,367		199,083
	$	29,002	$	24,204

The amounts noted above are included in the accompanying consolidated balance sheets under the following captions:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	2015			2014
	(In thousands)
Cost and estimated earnings in excess of billings on uncompleted contracts	$	33,676		$	27,222
Billings in excess of costs and estimated earnings on uncompleted contracts	(4,674		)	(3,018		)
	$	29,002		$	24,204

35

5.    Other accrued liabilities

Other accrued liabilities consisted of the following:

	2015		2014
	(In thousands)
Accrued interest	$	2,878	$	3,415
Tenant improvements	745		984
Accrued warranty	2,287		1,338
Commissions	2,540		1,259
Personnel expenses	6,034		5,579
Group medical insurance	1,502		1,858
Other	2,301		2,722
	$	18,287	$	17,155

6. Realignment Costs

As part of AZZ's ongoing efforts to optimize cost and effectiveness, during the second quarter of fiscal 2015, the Company underwent a review of its current management structure with respect to its segment and corporate operations and recorded realignment costs related to severance associated with changes needed to improve management efficiency and accountability. We also reserved for the disposition and write off of certain fixed assets in connection with the realignment. The total cost related to the realignment is estimated to be $4.0 million. One-time severance costs total $1.3 million and is included in Selling, General and Administrative Expense. The loss recognized from the disposition of certain fixed assets total $2.7 million and is included in Costs of Sales. The following table shows changes in the realignment accrual:

	Realignment Accrual
	(in thousands)
Realignment costs accrued	$	3,952
Realignment costs utilized	(3,496		)
Balance at February 28, 2015	$	456

7.    Employee benefit plans

The Company has a trusted profit sharing plan and 401(k) plan covering substantially all of its employees. Under the provisions of the plan, the Company contributes amounts as authorized by the Board of Directors. Total contributions to the profit sharing plan, which included the Company’s 401(k) matching, were $10.0 million, $10.4 million, and $10.5 million for fiscal 2015, 2014, and 2013, respectively.

8.    Income taxes

The provision for income taxes consists of:

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AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

		2015			2014			2013
Income before income taxes:
Domestic		$	76,434		$	83,495		$	92,334
Foreign		13,696			10,416			2,035
Income before income taxes		$	90,130		$	93,911		$	94,369
Current provision:
	Federal	$	3,770		$	28,901		$	26,330
	Foreign	3,025			1,903			(2,600		)
	State and Local	2,575			4,382			4,136
Total current provision for income taxes		$	9,370		$	35,186		$	27,866
Deferred provision (benefit):
	Federal	$	15,455		$	(2,143	)	$	2,024
	Foreign	(858		)	1,230			3,455
	State and Local	1,220			41			568
Total deferred provision for income taxes		$	15,817		$	(872	)	$	6,047
Total provision for income taxes		$	25,187		$	34,314		$	33,913

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

	2015		2014		2013
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Permanent differences	0.6		1.3		0.2
State income taxes, net of federal income tax benefit	2.7		3.0		3.1
Benefit of Section 199 of the Code, manufacturing deduction	(2.4	)	(2.2	)	(2.6	)
Valuation allowance	(3.4	)	—		—
Tax credits	(3.4	)	—		—
Foreign tax rate differential	(0.7	)	(0.6	)	0.2
Other	(0.5	)	—		—
Effective income tax rate	27.9	%	36.5	%	35.9	%

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:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	2015			2014
	(In thousands)
Deferred income tax assets:
Employee related items	$	4,690		$	4,314
Inventories	1,080			839
Accrued warranty	893			504
Accounts receivable	565			2,342
Net operating loss carry forward	1,919			4,268
Other	—			606
	9,147			12,873
Less: valuation allowance	(1,588		)	(3,793		)
Total deferred income tax assets	7,559			9,080
Deferred income tax liabilities:
Depreciation methods and property basis differences	(28,611		)	(19,995		)
Other assets and tax-deductible goodwill	(26,161		)	(20,719		)
Total deferred income tax liabilities	(54,772		)	(40,714		)
Net deferred income tax liabilities	$	(47,213	)	$	(31,634	)

In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. As of fiscal year end 2015, we have not made a provision for U.S. or additional foreign withholding taxes on approximately $17.5 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries.

The following table summarizes the Net Operating Loss Carry forward:

	2015		2014
	(In thousands)
Federal	$	—	$	1,089
State	$	1,919	$	1,919
Foreign	$	—	$	1,260

As of February 28, 2015, the Company had state NOL carry forwards of $31.9 millionwhich, if unused, will begin to expire in 2025.

We believe that it is more likely than not that the benefit from certain state NOL carry forwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.6 million on the deferred tax assets related to these state NOL carry forwards. We will review this risk within the next fiscal year and may conclude that a significant portion of the valuation allowance will no longer be needed. The tax benefits related to any reversal of the valuation allowance will be recognized as a reduction of income tax expense.

As of fiscal 2015, a portion of our deferred tax assets were the result of state NOL carry forwards. A valuation allowance of $1.6 million and $3.8 million was recorded against our gross deferred tax asset balance as of fiscal year end 2015 and 2014, respectively. For the year ended February 28, 2015, we recorded a net valuation allowance release of $2.2 million (comprising of a full-year valuation release of $1.2 million related to foreign operations, and $1.0 million related to NOLs from purchased stock of Aquilex SRO, in March 2013), on the basis of local tax authority reassessment of the amount which was realized in local tax jurisdictions and on local income tax returns.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

9.    Goodwill and intangible assets

Goodwill is not amortized but is subject to annual impairment tests. Other intangible assets are amortized over their estimated useful lives.

Changes in goodwill by segment during the year are as follows:

Segment	March 1, 2014		Acquisitions		Foreign Exchange Translation			February 28, 2015
	(In thousands)
Galvanizing Services	$	94,731	$	3,306	$	(2,499	)	$	95,538
Energy	183,825		807		(1,096		)	183,536
Total	$	278,556	$	4,113	$	(3,595	)	$	279,074

Segment	March 1, 2013		Acquisitions		Foreign Exchange Translation			February 28, 2014
	(In thousands)
Galvanizing Services	$	96,735	$	—	$	(2,004	)	$	94,731
Energy	75,151		109,636		(962		)	183,825
Total	$	171,886	$	109,636	$	(2,966	)	$	278,556

The Company completes its annual impairment analysis of goodwill on December 31st of each year. As a result, the Company determined that there was no impairment of goodwill.

Amortizable intangible assets consisted of the following as of February 28:

	2015			2014
	(In thousands)
Amortizable intangible assets
Customer related intangibles	$	159,235		$	158,913
Non-compete agreements	5,715			5,037
Trademarks	5,042			5,110
Technology	7,400			7,400
Certifications	209			232
Engineering drawings	24,600			24,600
Backlog	8,355			8,440
	210,556			209,732
Less accumulated amortization	(56,699		)	(39,300		)
	$	153,857		$	170,432

The Company recorded amortization expense of $18.0 million, $18.2 million and $10.0 million for fiscal 2015, 2014 and 2013, respectively. The following table projects the estimated amortization expense for the five succeeding fiscal years and thereafter.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	(In thousands)
2016	$	15,666
2017	15,402
2018	14,812
2019	14,136
2020	13,666
Thereafter	80,175
Total	$	153,857

10.    Earnings per share

Basic earnings per share is based on the weighted average number of shares outstanding during each year. Diluted earnings per share were similarly computed but have been adjusted for the dilutive effect of the weighted average number of stock options, stock appreciation rights and restricted stock units outstanding. The shares and earnings per share were adjusted to reflect our two for one stock split effected in the form of a share dividend approved by the Board of Directors on June 28, 2012, and paid on July 30, 2012. All share data has been retroactively restated.

The following table sets forth the computation of basic and diluted earnings per share:

	Year Ended February 28,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Net income for basic and diluted earnings per common share	$	64,943	$	59,597	$	60,456
Denominator:
Denominator for basic earnings per common share–weighted average shares	25,676		25,514		25,320
Effect of dilutive securities:
Employee and Director stock awards	102		179		241
Denominator for diluted earnings per common share	25,778		25,693		25,561
Earnings per share basic and diluted:
Basic earnings per common share	$	2.53	$	2.34	$	2.39
Diluted earnings per common share	$	2.52	$	2.32	$	2.37

Stock appreciation rights of approximately 80,683 and 113,887 were excluded from the computation of diluted earnings per share for fiscal 2015 and 2014, respectively, as the effect would be anti-dilutive. There were zero stock options or stock appreciation rights outstanding with exercise prices greater than the average market price of common shares for fiscal 2013.

11.    Share-based compensation

The Company has one share-based compensation plan, the 2014 Long Term Incentive Plan (the “Plan”). The purpose of the Plan is to promote the growth and prosperity of the Company by permitting the Company to grant to its employees, directors and advisors various types of restricted stock unit awards, stock appreciation rights and options to purchase common stock of the Company. The maximum number of shares that may be issued under the Plan is 1,500,000 shares. As of February 28, 2015, the Company had approximately 1,473,148 shares reserved for future issuance under the Plan.

Restricted Stock Unit Awards

Restricted stock unit awards are valued at the market price of our common stock on the grant date. These awards generally have a three year cliff vesting schedule but may vest early in accordance with the Plan’s accelerated vesting provisions.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Activity in our non-vested restricted stock unit awards for the year ended February 28, 2015 was as follows:

	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-Vested Balance as of February 28, 2014	70,352		$	34.95
Granted	48,616		42.89
Vested	(28,647	)	28.57
Forfeited	(12,875	)	40.87
Non-Vested Balance as of February 28, 2015	77,446		$	41.31

The total fair value of restricted stock units vested during fiscal years 2015, 2014, and 2013 was $0.8 million, $1.9 million and $0.5 million, respectively. For fiscal years ended 2015, 2014 and 2013, there were 77,446, 70,352 and 109,430, respectively, of non vested restricted stock units outstanding with weighted average grant date fair values of $41.31, $34.95 and $20.73, respectively.

Stock Appreciation Rights and Option Awards

Stock appreciation rights and option awards are granted with an exercise price equal to the market value of our common stock on the date of grant. These awards generally have a contractual term of 7 years and vest ratably over a period of 3 years although some may vest immediately on issuance. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company’s stock appreciation rights and option awards activity for the three years ended February 28, were as follows:

	2015				2014				2013
	Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price
Outstanding at beginning of year	396,174		$	26.64	439,863		$	19.12	573,000		$	15.46
Granted	126,532		43.92		116,032		45.20		118,107		25.77
Exercised	(98,942	)	22.79		(159,721	)	19.19		(251,240	)	13.84
Forfeited	(46,782	)	44.14		—		—		(4	)	2.11
Outstanding at end of year	376,982		$	31.27	396,174		$	26.64	439,863		$	19.12
Exercisable at end of year	204,107		$	21.55	153,343		$	15.32	115,395		$	13.14
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year			$	16.94			$	13.68			$	8.81

The average remaining contractual term for those options and stock appreciation rights outstanding as of February 28, 2015 was 4.13 years, with an aggregate intrinsic value of $17.1 million. The average remaining contractual terms for those options and stock appreciation rights that are exercisable as of February 28, 2014 was 2.82 years, with an aggregate intrinsic value of $9.3 million. As of February 28, 2015, the intrinsic value of options/stock appreciation rights exercised was $4.5 million.

The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2015.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Range of Exercise Prices	Total Options/ SAR’s	Average Remaining Life	Weighted Average Exercise Price		Options / SAR’s Currently   Exercisable	Weighted Average Exercise Price
$9.06	48,510	1.00	$	9.06	48,510	$	9.06
$15.84	54,546	2.00	$	15.84	54,546	$	15.84
$20.91	40,950	3.00	$	20.91	40,950	$	20.91
$25.67	38,932	4.00	$	25.67	24,082	$	25.67
$39.65	950	5.00	$	39.65	—	$	39.65
$43.92	112,411	6.00	$	43.92	8,089	$	43.92
$45.26	40,000	6.00	$	45.26	10,000	$	45.26
$45.36	39,924	5.00	$	45.36	17,677	$	45.36
$46.43	759	5.00	$	46.43	253	$	46.43
$ 9.06 - $46.43	376,982	4.13	$	31.27	204,107	$	21.55

Assumptions used in the Black-Scholes option pricing model for the last three fiscal years were as follows for all stock appreciation rights plans:

	2015	2014	2013
Expected term in years	4.5	4.5	4.5
Expected dividend yield	1.20% – 1.32%	1.21% - 1.49%	1.76% – 1.95%
Expected price volatility	35.39% – 40.00%	36.34% – 53.00%	45.00% – 47.83%
Risk-free interest rate	2.32 – 2.73	0.75 - 2.98	0.59 – 0.89

Directors Grants

During fiscal 2013 the Company granted each of its independent directors 1,000 shares of the Company’s common stock which subsequently split 2 for 1. In fiscal 2014 and 2015, each of its independent directors were granted 2,000 shares of the Company’s common stock. These common stock grants were valued at $44.90, $36.70 and $32.51 per share for fiscal 2015, 2014 and 2013, respectively, which was the market price of our common stock on the grant date.

Employee Stock Purchase Plan

The Company also has an employee stock purchase plan, which allows employees of the Company to purchase common stock of the Company through accumulated payroll deductions. Offerings under this plan have a duration of 24 months (the "offering period"). On the first day of an offering period (the “enrollment date”) the participant is granted the option to purchase shares on each exercise date at the lower of 85% of the market value of a share of our common stock on the enrollment date or the exercise date. The participant’s right to purchase common stock under the plan is restricted to no more than $25,000 per calendar year and the participant may not purchase more than 5,000 shares during any offering period. Participants may terminate their interest in a given offering or a given exercise period by withdrawing all of their accumulated payroll deductions at any time prior to the end of the offering period.

Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows:

Year Ended February 28,	2015		2014		2013
	(In thousands)
Compensation Expense	$	4,080	$	3,703	$	3,175
Income tax benefits	$	1,428	$	1,296	$	1,111

Unrecognized compensation cost related to all the above at February 28, 2015 totaled $4.1 million. These costs are expected to be recognized over a weighted period of 2.66 years.

42

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company did not receive cash from the exercise of stock options for the years ended February 28, 2015 and 2014. Cash received from the exercise of stock options for the year ended February 28, 2013 was insignificant. The actual tax benefit realized for tax deductions from options exercised each of these years totaled $0.3 million, $1.6 million and $1.3 million, respectively.

The Company’s policy is to issue shares required under these plans from the Company’s treasury shares or from the Company’s authorized but unissued shares. The Company has no formal or informal plan to repurchase shares on the open market to satisfy these requirements.

12.    Debt

Debt consisted of the following:	2015			2014
	(In thousands)
Senior Notes, due in balloon payment in January 2021	$	125,000		$	125,000
Senior Notes, due in annual installments of $14,286 beginning in March 2012 through March 2018	$	57,143		$	71,428
Term Note, due in quarterly installments beginning in June 2013 through March 2018	$	65,625		$	72,188
Revolving line of credit with bank	$	90,080		$	137,000
Total debt	$	337,848		$	405,616
Less amount due within one year	$	(21,866	)	$	(20,848	)
Total long-term debt	$	315,982		$	384,768

On March 27, 2013, we entered into a Credit Agreement (the “Credit Agreement”) with Bank of America and other lenders. The Credit Agreement provided for a $75.0 million term facility and a $225.0 million revolving credit facility that included a $75.0 million “accordion” feature. The Credit Agreement is used to provide for working capital needs, capital improvements, dividends, future acquisitions and letter of credit needs.

Interest rates for borrowings under the Credit Agreement are based on either a Eurodollar Rate or a Base Rate plus a margin ranging from 1.0% to 2.0% depending on our Leverage Ratio. The Eurodollar Rate is defined as LIBOR for a term equivalent to the borrowing term (or other similar interbank rates if LIBOR is unavailable). The Base Rate is defined as the highest of the applicable Fed Funds rate plus 0.50%, the Prime rate, or the Eurodollar Rate plus 1.0% at the time of borrowing. The Credit Agreement also carries a Commitment Fee for the unfunded portion ranging from 0.20% to 0.30% per annum, depending on our Leverage Ratio.

The $75.0 million term facility under the Credit Agreement requires quarterly principal and interest payments commencing on June 30, 2013 through March 27, 2018, the maturity date.

The Credit Agreement provides various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $230.0 million, plus 50.0% of future net income, b) maintain on a consolidated basis a Leverage Ratio (as defined in the Credit Agreement) not to exceed 3.25:1.0, c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.75:1.0 and d) not to make Capital Expenditures (as defined in the Credit Agreement) on a consolidated basis in an amount in excess of $60.0 million during the fiscal year ended February 28, 2014 and $50.0 million during any subsequent year.

As of February 28, 2015, we had $90.1 million of outstanding debt against the revolving credit facility provided and letters of credit outstanding in the amount of $13.0 million, which left approximately $122.0 million of additional credit available under the Credit Agreement.

On March 31, 2008, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) pursuant to which the Company issued $100.0 million aggregate principal amount of its 6.24% unsecured Senior Notes (the “2008 Notes”) due March 31, 2018 through a private placement (the “2008 Note Offering”). Pursuant to the Note Purchase Agreement, the Company’s payment obligations with respect to the 2008 Notes may be accelerated upon any Event of Default, as defined in the Note Purchase Agreement.

The Company entered into an additional Note Purchase Agreement on January 21, 2011 (the “2011 Agreement”), pursuant to which the Company issued $125.0 million aggregate principal amount of its 5.42% unsecured Senior Notes (the “2011 Notes”), due in January of 2021, through a private placement (the “2011 Note Offering”). Pursuant to the 2011 Agreement, the Company's payment obligations with respect to the 2011 Notes may be accelerated under certain circumstances.

43

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The 2008 Notes and the 2011 Notes each provide for various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $116.9 million plus 50.0% of future net income; b) maintain a ratio of indebtedness to EBITDA (as defined in Note Purchase Agreement) not to exceed 3.25:1.00; c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Note Purchase Agreement) of at least 2.0:1.0; d) not at any time permit the aggregate amount of all Priority Indebtedness (as defined in the Note Purchase Agreement) to exceed 10.0% of Consolidated Net Worth (as defined in the Note Purchase Agreement).

As of February 28, 2015, the Company was in compliance with all of its debt covenants.

Maturities of debt are as follows:

Fiscal Year	(In thousands)
2016	$	21,866
2017	23,192
2018	16,629
2019	151,161
2020	—
Thereafter	125,000
Total	$	337,848

13.    Operating segments

Information regarding operations and assets by segment was as follows:

44

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	2015			2014			2013
Net sales:	(In thousands)
Energy	$	458,339		$	416,106		$	233,555
Galvanizing Services	358,348			335,617			337,039
	$	816,687		$	751,723		$	570,594
Operating income:
Energy	$	38,703		$	44,513		$	32,073
Galvanizing Services	88,562			87,808			88,505
Corporate	(20,440		)	(32,207		)	(22,594		)
Total Operating Income	106,825			100,114			97,984
Interest expense	16,561			18,407			13,073
Net gain on sale of property, plant and equipment and insurance proceeds	(2,525		)	(8,039		)	(8,303		)
Other (income) expense, net	2,659			(4,165		)	(1,155		)
Income before income taxes	$	90,130		$	93,911		$	94,369
Depreciation and amortization:
Energy	$	20,725		$	19,959		$	8,587
Galvanizing Services	23,964			22,008			19,501
Corporate	1,400			1,338			1,275
	$	46,089		$	43,305		$	29,363
Expenditures for acquisitions, net of cash, and property, plant and equipment:
Energy	$	10,647		$	284,514		$	79,513
Galvanizing Services	26,928			33,282			81,604
Corporate	3,320			1,378			864
	$	40,895		$	319,174		$	161,981
Total assets:
Energy	$	523,247		$	542,809		$	261,074
Galvanizing Services	378,823			378,358			370,142
Corporate	34,844			32,086			62,989
	$	936,914		$	953,253		$	694,205
Geographic net sales:
United States	$	631,544		$	601,674		$	503,699
Other countries	189,855			150,049			66,895
Eliminations	(4,712		)	—			—
	$	816,687		$	751,723		$	570,594
Property, plant and equipment, net:
United States	$	173,712		$	171,727		$	127,410
Canada	20,289			23,779			27,066
Other Countries	2,582			2,133			—
	$	196,583		$	197,639		$	154,476

14.    Commitments and contingencies

45

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Leases

The Company is obligated under various operating leases for property, plant and equipment. As February 28, 2015, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year are summarized in the below table:

Fiscal Year:	(In thousands)
2016	$	6,955
2017	6,415
2018	4,561
2019	3,257
2020	1,204
Thereafter	2,758
Total	$	25,150

Rent expense was $14.1 million, $11.0 million and $7.8 million for fiscal years 2015, 2014 and 2013, respectively. Rent expense includes various equipment rentals that do not meet the terms of a non-cancelable lease or that have initial terms of less than one year.

Commodity pricing

We have no contracted commitments for any commodities including steel, aluminum, natural gas, cooper, zinc, nickel based alloys, except for those entered into under the normal course of business.

Other

At February 28, 2015, the Company had outstanding letters of credit in the amount of $13.0 million. These letters of credit were issued to customers served by our Energy Segment to cover insurance reserves and any potential warranty costs and performance issues and bid bonds. In addition, as of February 28, 2015, a warranty reserve in the amount of $2.3 million was established to offset any future warranty claims.

15.    Selected quarterly financial data (Unaudited)

	Quarter ended
	May 31, 2014		August 31, 2014		November 30, 2014		February 28, 2015
	(in thousands, except per share data)
Net sales	$	216,126	$	193,416	$	224,833	$	182,312
Gross profit	55,389		42,100		60,775		47,432
Net income	14,925		13,769		19,965		16,283
Basic earnings per share	0.58		0.54		0.78		0.63
Diluted earnings per share	0.58		0.53		0.77		0.63

46

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Quarter ended
	May 31, 2013		August 31, 2013		November 30, 2013		February 28, 2014
	(in thousands, except per share data)
Net sales	$	183,175	$	189,782	$	197,755	$	181,011
Gross profit	50,715		55,905		53,361		45,724
Net income	14,547		16,363		18,445		10,242
Basic earnings per share	0.57		0.64		0.72		0.40
Diluted earnings per share	0.57		0.64		0.72		0.40

16.    Acquisitions

On June 30, 2014, we completed our acquisition of substantially all the assets of Zalk Steel & Supply Co. (“Zalk Steel”), a Minneapolis, Minnesota-based galvanizing company, for a purchase price of $10.5 million and the assumption of $0.3 million in liabilities.  The Company recorded $3.3 million of goodwill, which has been allocated to the Galvanizing Services Segment, and $3.4 million of intangible assets associated with this acquisition.  The intangible assets associated with the acquisition consist primarily of trade names, customer relationships and non-compete agreements.  These intangible assets are being amortized on a straight-line basis over a period of 19 years for customer relationships, 19 years for trade names, and 5 years for non-compete agreements.  Zalk Steel was acquired to expand AZZ's existing geographic footprint in North America. The goodwill arising from this acquisition was allocated to the Galvanizing Segment and is deductible for income tax purposes.

Unaudited pro forma results of operations assuming the Zalk Steel acquisition had taken place at the beginning of each period are not provided because the historical operating results of Zalk Steel were not significant and pro forma results would not be significantly different from reported results for the periods presented.

On March 29, 2013, we completed our acquisition of all of the equity securities of Aquilex Specialty Repair and Overhaul LLC, a Delaware limited liability company (“Aquilex SRO”), pursuant to the terms of the Securities Purchase Agreement dated February 22, 2013 (the “Purchase Agreement”). Aquilex SRO provides the energy industry with specialty repair and overhaul solutions designed to improve mechanical integrity and extend component life. Aquilex SRO offers services to a diverse base of blue-chip customers in the nuclear, fossil power, refining, chemical processing, pulp and waste-to-energy industries, serving clients that place a high value on reliability, quality and safety. Aquilex SRO’s offering is differentiated through advanced proprietary tooling and process technologies delivered by a uniquely skilled specialized workforce. The acquisition is part of our strategy to expand our offerings in the Energy Segment to enhance our presence in the power generation market. The Purchase Agreement provided for AZZ's acquisition of all equity securities of Aquilex SRO for cash consideration in the amount of $275.7 million, which was comprised of $271.8 million as cash paid at closing and $3.9 million subsequently paid in connection with a purchase price adjustment based on working capital pursuant to the Purchase Agreement.

Under the acquisition method of accounting, the total purchase price was allocated to Aquilex SRO’s net identifiable assets based on their estimated fair values as of March 29, 2013, the date on which AZZ acquired control of Aquilex SRO through cash purchase. The excess of the purchase price over the net identifiable assets was recorded as goodwill. The following table summarizes the estimated fair value of the assets acquired and liabilities of Aquilex SRO assumed at the date of acquisition:

	($ in thousands)
Current Assets	$	78,619
Property and Equipment	27,669
Intangible Assets	87,100
Goodwill	109,636
Other Assets	205
Total Assets Acquired	303,229
Current Liabilities	(27,527		)
Net Assets Acquired	$	275,702

47

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also synergies expected to arise. This goodwill has been allocated to the Energy Segment and will not be deductible for income tax purposes. All of the $87.1 million of intangible assets acquired are assigned to customer related intangibles and technology. The intangible assets are being amortized over 14 years for customer related intangibles, 19 years for trade names and 3-9 years for technology on a straight line basis. During fiscal 2014, we expensed $5.4 million in acquisition costs related to the acquisition of Aquilex SRO.

The following unaudited pro forma information assumes that the acquisition of Aquilex SRO took place on March 1, 2012 for the income statements for the years ended February 28, 2014, and February 28, 2013.

	2014		2013
	(Unaudited) (In thousands, except for per share amounts)
Net sales:	$	774,818	$	783,126
Net Income	$	60,080	$	58,372
Earnings Per Common Share
Basic Earnings Per Share	$	2.35	$	2.31
Diluted Earnings Per Share	$	2.34	$	2.28

On January 2, 2013, we acquired G3 Galvanizing Limited ("G3"), a galvanizing operation in Halifax, Nova Scotia. This acquisition is part of the stated AZZ strategy to continue the geographic expansion of its served markets that should provide a basis for continued growth of the Galvanizing Services Segment of AZZ. The purchase price paid in connection with the asset purchase was $12.0 million and the assumption of $3.1 million in liabilities. Goodwill of $4.2 million resulting from the acquisition has been allocated to the Galvanizing Services Segment and will not be deductible for tax purposes. The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also reflects the synergies that are expected to arise. During fiscal 2013, we expensed $0.5 million in acquisition costs related to the acquisition of G3.

On October 1, 2012, we completed the acquisition of substantially all of the assets of Galvcast Manufacturing Inc. (“Galvcast”), a Canadian galvanizing company with operations in Ontario, and certain real property owned by an affiliate of Galvcast. The purchase price paid in connection with the asset purchase was $48.0 million and the assumption of approximately $0.9 million in liabilities. Goodwill of $15.7 million resulting from the acquisition has been allocated to the Galvanizing Services Segment and 75% of the goodwill will be deductible for tax purposes. The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also reflects the synergies that are expected to arise. This acquisition was made to compliment and expand our existing geographic Canadian footprint. During fiscal 2013, we expensed $0.3 million in acquisition costs related to the acquisition of Galvcast.

On June 1, 2012, we completed the acquisition of substantially all of the assets of Nuclear Logistics Incorporated (“NLI”). The purchase price paid in connection with the asset purchase was $77.0 million, net of cash acquired, along with the assumption of certain liabilities and the payoff of $3.8 million of notes payable at closing. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. During fiscal 2013, we expensed $0.9 million in acquisition costs related to the acquisition of NLI.

The following unaudited pro forma information assumes that the acquisition of NLI took place on March 1, 2012 for the income statements for the year ended February 28, 2013.

48

AZZ incorporated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	2013
	(Unaudited) (In thousands, except for per share amounts)
Net sales:	$	583,743
Net Income	$	60,602
Earnings Per Common Share
Basic Earnings Per Share	$	2.39
Diluted Earnings Per Share	$	2.37

The total purchase price was allocated to NLI’s net tangible and identifiable intangible assets based on their estimated fair values as of June 1, 2012, the date on which AZZ acquired control of NLI. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill and will be allocated to the Energy Segment. The goodwill will be deductible for income tax purposes. The goodwill arising from this acquisition is mainly attributable to business synergies expected to arise between NLI and other AZZ subsidiaries along with the long term growth that is projected at NLI. The potential earn out payment with respect to NLI, as described above, was classified as a long term liability for purposes of the purchase price allocation, however, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. AZZ has made an allocation of the purchase price as follows:

	($ in thousands)
Current Assets	$	22,901
Property and Equipment	1,416
Intangible Assets	50,600
Goodwill	32,323
Other Assets	58
Total Assets Acquired	107,298
Current Liabilities	(17,866		)
Long Term Liabilities	(12,388		)
Net Assets Acquired	$	77,044

17.    Subsequent Events

None.

49

Schedule II

AZZ incorporated

Valuation and Qualifying Accounts and Reserves

(In thousands)

	Year Ended February 28,
	2015			2014			2013
Allowance for Doubtful Accounts
Balance at beginning of year	$	1,744		$	1,000		$	898
Additions (reductions) charged or credited to income	458			(116		)	446
Balances written off, net of recoveries	(700		)	(294		)	(344		)
Other	—			1,184			—
Effect of exchange rate	(30		)	(30		)	—
Balance at end of year	$	1,472		$	1,744		$	1,000

50

Item 9.        Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A.        Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

As of February 28, 2015, the Company's management, with the participation of its principal executive officer and principal financial officer, have evaluated, as required by Rule 13a-15(e) under the Securities Exchange Act of 1934 ("the Exchange Act"), the effectiveness of the Company's disclosure controls and procedures. Based on that evaluation, the principal executive officer and principal financial officer concluded that, as of February 28, 2015, the Company's disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and were effective to provide reasonable assurance that such information is accumulated and communicated to the Company's management, including the principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Changes in Internal Controls Over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the three months ended February 28, 2015, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Management’s Report on Internal Controls Over Financial Reporting

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) of the Exchange Act. Management, with the participation of its principal executive officer and principal financial officer assessed the effectiveness, as of February 28, 2015, of the Company's internal control over financial reporting based on the criteria for effective internal control over financial reporting established in "Internal Control — Integrated Framework (2013)," issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management concluded that the Company maintained effective internal control over financial reporting as of February 28, 2015. Management's assessment and conclusion on the effectiveness of internal control over financial reporting did not include an assessment of the internal controls of Zalk Steel, whose acquisition was completed on June 30, 2014. The assets acquired from Zalk Steel comprised approximately 1.2% of the Company's total assets as of February 28, 2015. The Zalk Steel acquisition resulted in revenues and net income consisting of less than 1.0% of the Company's consolidated revenues and net income for the year ended February 28, 2015.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements or fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met.

The effectiveness of the Company's internal control over financial reporting as of February 28, 2015, has been audited by BDO USA, LLP, an independent registered public accounting firm, as stated in their attestation report included herein.

Item 9B.        Other Information.

None.

51

PART III

Item 10.        Directors, Executive Officers and Corporate Governance.

The information required by this item with regard to executive officers is included in Part I, Item 1 of this Annual Report on Form 10-K under the heading “Executive Officers of the Registrant.”

Information regarding directors of AZZ required by this Item is incorporated by reference to the section entitled “Election of Directors” set forth in the Proxy Statement for our 2015 Annual Meeting of Shareholders.

The information regarding compliance with Section 16(a) of the Exchange Act required by this Item is incorporated by reference to the section entitled “Section 16(a) Beneficial Ownership Reporting Compliance” set forth in the Proxy Statement for our 2015 Annual Meeting of Shareholders.

Information regarding our audit committee financial experts and code of ethics and business conduct required by this Item is incorporated by reference to the section entitled “Matters Relating to Corporate Governance, Board Structure, Director Compensation and Stock Ownership” set forth in the Proxy Statement for our 2015 Annual Meeting of Shareholders.

No director or nominee for director has any family relationship with any other director or nominee or with any executive officer of our company.

Item 11.        Executive Compensation.

The information required by this Item is incorporated herein by reference to the section entitled “Executive Compensation” and the section entitled “Matters Relating to Corporate Governance, Board Structure, Director Compensation and Stock Ownership – Fees Paid to Directors” set forth in our Proxy Statement for our 2015 Annual Meeting of Shareholders.

Item 12.        Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information required by this Item is incorporated herein by reference to the section entitled “Executive Compensation” and the section entitled “Matters Relating to Corporate Governance, Board Structure, Director Compensation and Stock Ownership – Security Ownership of Management” set forth in the Proxy Statement for our 2015 Annual Meeting of Shareholders.

Equity Compensation Plan

The following table provides a summary of information as of February 28, 2015, relating to our equity compensation plans in which our Common Stock is authorized for issuance.

Equity Compensation Plan Information:

	(a) Number of securities to be issued upon exercise of outstanding options, warrants and rights	(b) Weighted average exercise price of outstanding options, warrants and rights		(c) Number of securities remaining available for future issuance under equity compensation plans (excluding shares reflected in column (a))
Equity compensation plans approved by shareholders(1)	376,982(2)	$	31.27	1473148(3)
Total	376,982	$	31.27	1,473,148

(1) Consists of the Amended and Restated 2005 Long-Term Incentive Plan and the 2014 Long-Term Incentive Plan. See Note 11, “Stock Compensation” to our “Notes to Consolidated Financial Statements” for further information.

(2) The average term of outstanding options and stock appreciation rights is 4.03 years.

(3) Consists of 1,473,148 shares remaining available for future issuance under the Amended and Restated 2005 Long-Term Incentive Plan.

Description of Other Plans for the Grant of Equity Compensation

52

Long Term Incentive Plans

The description of the 2005 Long Term Incentive Plan and 2014 Long Term Incentive Plan provided in Note 11 to the financial statements included in this Annual Report on Form 10-K are incorporated by reference under this Item.

Item 13.        Certain Relationships and Related Transactions, and Director Independence.

The information required by this Item is incorporated by reference to the sections entitled “Certain Relationships and Related Party Transactions” and “Director Independence” set forth in the Proxy Statement for our 2015 Annual Meeting of Shareholders.

Item 14.        Principal Accountant Fees and Services

Information required by this Item is incorporated by reference to the sections entitled “Other Business – Independent Auditor Fees” and “Other Business – Pre-approval of Non-audit Fees” set forth in our Proxy Statement for our 2015 Annual Meeting of Shareholders.

53

PART IV

Item 15.        Exhibits and Financial Statement Schedules.

A.Financial Statements

1. The financial statements filed as a part of this Annual Report on Form 10-K are listed in the “Index to Consolidated Financial Statements” on page 28.

2. Financial Statement Schedule

Schedule II – Valuation and Qualifying Accounts and Reserves filed as a part of this Annual Report on Form 10-K is listed in the “Index to Consolidated Financial Statements” on page 55.

Schedules and compliance information other than those referred to above have been omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and the notes thereto.

B.    Exhibits Required by Item 601 of Regulation S-K

A list of the exhibits required by Item 601 of Regulation S-K and filed as part of this Annual Report on Form 10-K is set forth in the Index to Exhibits beginning on page 62, which immediately precedes such exhibits.

54

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AZZ incorporated
	(Registrant)
April 22, 2015	By: /s/ Thomas E. Ferguson
	Thomas E. Ferguson, President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of AZZ and in the capacities and on the dates indicated.

April 22, 2015	/s/ Kevern R. Joyce
	Kevern R. Joyce Chairman of the Board of Directors
April 22, 2015	/s/ Thomas E. Ferguson
	Thomas E. Ferguson President, Chief Executive Officer and Director (Principal Executive Officer)
April 22, 2015	/s/ Paul W. Fehlman
	Paul W. Fehlman, Senior Vice President and Chief Financial Officer (Principal Financial Officer)
April 22, 2015	/s/ Robert J. Steines
	Robert J. Steines Vice President and Chief Accounting Officer
April 22, 2015	/s/ Daniel R. Feehan
	Daniel R. Feehan Director
April 22, 2015	/s/ Peter A. Hegedus
	Peter A. Hegedus Director
April 22, 2015	/s/ Dr. H. Kirk Downey
	Dr. H. Kirk Downey Director
April 22, 2015	/s/ Daniel E. Berce
	Daniel E. Berce Director
April 22, 2015	/s/ Martin C. Bowen
	Martin C. Bowen Director
April 22, 2015	/s/ Sam Rosen
	Sam Rosen Director
April 22, 2015	/s/ Dana L. Perry
	Dana L. Perry Director
April 22, 2015	/s/ Stephen E. Pirnat
	Stephen E. Pirnat Director

55

Index to Exhibits as Required By Item 601 of Regulation S-K.

3.1	Articles of Incorporation, and all amendments thereto (incorporated by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 1981)
3.2	Articles of Amendment to the Articles of Incorporation, dated June 30, 1988 (incorporated by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 29, 2000)
3.3	Articles of Amendment to the Articles of Incorporation dated October 25, 1999 (incorporated by reference to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 29, 2000) .
3.4	Articles of Amendment to the Articles of Incorporated, dated July 17, 2000 (incorporated by reference to the Registrant’s Quarterly Report on Form 10-Q for the fiscal year ended August 31, 2000)
3.5	AZZ incorporated Bylaws, as Amended and Restated (incorporated by reference to Exhibit 3(1) to the Registrant’s Current Report on Form 8-K filed on April 8, 2014
4.1	Form of Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2000)
10.1	Securities Purchase Agreement, dated February 22, 2013 by and among AZZ incorporated, Arbor-Crowley, Inc., Aquilex Specialty Repair and Overhaul LLC, Aquilex LLC, the Blocker Sellers named therein and the Blocker Corps named therein (incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K filed February 28, 2013)
10.2	Note Purchase Agreement dated March 31, 2008, by and among AZZ incorporated and the purchasers listed therein (incorporated by reference to Exhibit 10(1) to the Registrant’s Current Report on Form 8-K filed April 2, 2008)
10.3	Note Purchase Agreement, dated as of January 20, 2011, by and among AZZ incorporated and the purchasers identified therein (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K filed January 21, 2011)
10.4	Credit Agreement, dated as of March 27, 2013, by and among AZZ incorporated, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the other Lenders party thereto (incorporated by reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K filed April 2, 2013)
10.5*	AZZ incorporated Amended and Restated 2005 Long-Term Incentive Plan (incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement on Form DEF 14A filed June 4, 2008)
10.6*	Form of AZZ incorporated Fiscal Year 2005 Stock Appreciation Rights Plan for Directors (incorporated by reference to Exhibit 10(53) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2004)
10.7*	Form of AZZ incorporated Fiscal Year 2005 Stock Appreciation Rights Plan for Key Employees (incorporated by reference to Exhibit 10(54) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended August 31, 2004)
10.8*	AZZ incorporated 2014 Long-Term Incentive Plan (incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement on Form DEF 14A filed May 29, 2014)
10.9*	Form of Restricted Share Unit Award Agreement (incorporated by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended November 30, 2014)
10.10*	Form of Stock Appreciation Rights Award Agreement (incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended November 30, 2014)
10.11*	Form of Performance Award Agreement (incorporated by reference to Exhibit 10.8 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended November 30, 2014)
10.12*	AZZ incorporated Senior Executive Bonus Plan (incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement on Form DEF 14A filed June 4, 2007)
10.13*	AZZ incorporated Employee Stock Purchase Plan (incorporated by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Form DEF14A filed June 4, 2008)
10.14*	Employment Agreement by and between AZZ incorporated and Thomas Ferguson, dated as of November 4, 2013 (incorporated by reference to the Exhibit 10(1) to the Registrant’s Current Report on Form 8-K filed November 7, 2013)
10.15*	Change in Control Agreement by and between AZZ incorporated and Thomas Ferguson, dated as of November 4, 2013 (incorporated by reference to Exhibit 10(2) to the Registrant’s Current Report on Form 8-K filed November 7, 2013)

56

10.16*	Employment Agreement by and between AZZ incorporated and Paul Fehlman, dated as of February 24, 2014 (incorporated by reference to Exhibit 10(1) to the Registrant’s Current Report on Form 8-K filed February 27, 2014)
10.17*	Change in Control Agreement by and between AZZ incorporated and Paul Fehlman, dated as of February 24, 2014 (incorporated by reference to Exhibit 10(2) to the Registrant’s Current Report on Form 8-K filed February 27, 2014)
10.18*	Employment Agreement by and between AZZ incorporated and Dana L. Perry, to be effective as of March 1, 2001 (incorporated by reference to Exhibit 10(15) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2002)
10.19*	Amendment No. One to Employment Agreement by and between AZZ incorporated and Dana L. Perry, dated as of March 27, 2002 (incorporated by reference to Exhibit 10(16) to Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2002)
10.20*	Amendment No. Two to Employment Agreement by and between AZZ incorporated and Dana L. Perry, dated as of May 15, 2003 (incorporated by reference to Exhibit 10(34) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2003)
10.21*	Change in Control Agreement by and between AZZ incorporated and Dana L. Perry, dated as of January 28, 2002 (incorporated by reference to Exhibit 10(28) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2011)
10.22*	Form of Change in Control Agreement by and between AZZ incorporated and certain officers thereof (incorporated by reference to Exhibit 10(18) to the Registrant’s Annual Report on Form 10-K for the fiscal year ended February 28, 2002)
12.1	Computation of Ratio of Earnings to Fixed Charges (Filed herewith)
14.1	Code of Ethics. AZZ incorporated Code of Ethics may be accessed via the Company’s Website at www.azz.com.
21.1	Subsidiaries of the Registrant (Filed herewith)
23.1	Consent of BDO USA, LLP (Filed herewith)
31.1	Certification by Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Exley Act of 2002 (Filed herewith)
31.2	Certification by Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Exley Act of 2002 (Filed herewith)
32.1	Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
32.2	Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*    Management contract, compensatory plan or arrangement

57

EX-21.1

Exhibit 21.1

Subsidiaries*

Name of Subsidiary	Jurisdiction of Formation
AAA Galvanizing – Chelsea, Inc.	Delaware
AAA Galvanizing – Dixon, Inc.	Delaware
AAA Galvanizing – Hamilton, Inc.	Delaware
AAA Galvanizing – Joliet, Inc.	Delaware
AAA Galvanizing – Peoria, Inc.	Delaware
AAA Galvanizing – Winsted, Inc.	Delaware
Arbor-Crowley, LLC	Delaware
Arizona Galvanizing, Inc.	Arizona
ArkGalv, Inc.	Arkansas
Atkinson Industries, Inc.	Kansas
Automatic Processing Incorporated	Mississippi
Aztec Industries, Inc.	Mississippi
Aztec Industries, Inc. – Moss Point	Mississippi
AZZ AcquireCo, Inc.	Delaware
AZZ Delaware LLC	Delaware
AZZ GP, LLC	Delaware
AZZ Group, LP	Delaware
AZZ Holdings, Inc.	Delaware
AZZ International I, LLC	Delaware
AZZ International II, LLC	Delaware
AZZ LP, LLC	Delaware
AZZ Netherlands, LLC	Delaware
AZZ Specialty Repair and Overhaul LLC	Delaware
AZZ SMS LLC	Florida
AZZ WSI LLC	Delaware
The Calvert Company	Mississippi
Carter and Crawley, Inc.	Delaware
CCPII Feeder – AQSRO, L.P.	Delaware
Central Electric Company	Missouri
Central Electric Manufacturing Company	Missouri
CGIT Systems, Inc.	Delaware
Clark Control Systems, Inc.	Missouri
Electrical Power Systems, Inc.	Missouri
Greeley Development Corporation	Delaware
Gulf Coast Galvanizing, Inc.	Alabama
Hobson Galvanizing, Inc.	Louisiana
NAGALV – Ohio, Inc.	Delaware
NAGALV – WV, Inc.	Delaware
North American Galvanizing Company, LLC	Delaware
North American Galvanizing & Coatings, Inc.	Delaware
Nuclear Logistics Incorporated	Delaware
Premier Coatings, Inc.	Oklahoma
Reinforcing Services, Inc.	Oklahoma
Rogers Galvanizing Company – Kansas City	Oklahoma
Series D I, LLC	Delaware
Series D II, LLC	Delaware
Westside Galvanizing Services, LLC	Delaware
Witt Galvanizing – Cincinnati, LLC	Delaware
Witt Galvanizing – Muncie, LLC	Delaware
Witt Galvanizing – Plymouth, LLC	Delaware
Zalk Steel & Supply Co.	Delaware
Aztec Manufacturing Partnership, Ltd.	Texas
Aztec Manufacturing – Waskom Partnership, Ltd.	Texas
Rig-A-Lite Partnership, Ltd.	Texas
International Galvanizers Partnership, Ltd.	Texas
Drilling Rig Electrical Systems Co. Partnership, Ltd.	Texas
AZZ WSI do Brasil Ltda.	Brazil
AZZ Blenkhorn & Sawle Limited	Canada
AZZ Canada Limited	Canada
AZZ WSI Canada, ULC	Canada
AZZ Trading (Shanghai) Co., Ltd	China
AZZ Netherlands, C.V.	Netherlands
AZZ Welding Services B.V.	Netherlands
AZZ WSI Holding Cooperative UA	Netherlands
AZZ WSI B.V.	Netherlands
AZZ WSI Holding Cooperative B.V.	Netherlands
AZZ Welding Services Poland, SP. z.o.o.	Poland

*Subsidiary list as of the date filed.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

AZZ incorporated

Fort Worth, Texas

We hereby consent to the incorporation by reference in the following Registration Statements of AZZ incorporated:

1) Registration Statement (Form S-3 No. 333-66294);

2) Registration Statement (Form S-8 No. 33-49164) pertaining to the 1991 Nonstatutory Stock Option Plan of AZZ incorporated;

3) Registration Statement (Form S-8 No. 33-49158) pertaining to the 1991 Incentive Stock Option Plan of AZZ incorporated;

4) Registration Statement (Form S-8 No. 333-92377) pertaining to the Employee Benefit Plan and Trust of AZZ incorporated;

5) Registration Statement (Form S-8 No. 333-31716) pertaining to the Independent Director Share Ownership Plan of AZZ incorporated;

6) Registration Statement (Form S-8 No. 333-38470) pertaining to the 1998 Incentive Stock Option Plan, 1998 Nonstatutory Stock Option Plan and 1997 Nonstatutory Stock Option Grants of AZZ incorporated;

7) Registration Statement (Form S-8 No. 333-48886) pertaining to the 2000 Advisory Director Share Ownership Plan of AZZ incorporated;

8) Registration Statement (Form S-8 No. 333-90968) pertaining to the 2001 Long-Term Incentive Plan of AZZ incorporated;

9) Registration Statement (Form S-8 No. 333-131068) pertaining to the 2005 Long-Term Incentive Plan of AZZ incorporated;

10) Registration Statement (Form S-8 No. 333-152960) pertaining to the Employee Stock Purchase Plan of AZZ incorporated;

11) Registration Statement (Form S-8 No. 333-152958) pertaining to the Amended and Restated 2005 Long-Term Incentive plan of AZZ incorporated;

12) Registration Statement (Form S-8 No. 333-197323) pertaining to the 2014 Long-Term Incentive plan of AZZ incorporated.

of our report dated April 22, 2015, relating to the consolidated financial statements and financial statement schedule and the effectiveness of AZZ incorporated’s internal control over financial reporting, which appears in this Form 10-K.

/s/ BDO USA, LLP 

Dallas, Texas

April 22, 2015

EX-31.1

Exhibit 31.1

Certification by Thomas E. Ferguson

Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Thomas E. Ferguson, certify that:

1. I have reviewed this Yearly Report on Form 10-K of AZZ incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: April 22, 2015	/s/ Thomas E. Ferguson
	Thomas E. Ferguson
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification by Paul W. Fehlman

Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Paul W. Fehlman, certify that:

1. I have reviewed this Yearly Report on Form 10-K of AZZ incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: April 22, 2015	/s/ Paul W. Fehlman
	Paul W. Fehlman
	Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Thomas E. Ferguson, has executed this certification in connection with the filing with the Securities and Exchange Commission of AZZ incorporated’s Yearly Report on Form 10-K for the period ended February 28, 2015 (the “Report”). The undersigned hereby certifies that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of AZZ incorporated.

Dated: April 22, 2015	/s/ Thomas E. Ferguson
	Thomas E. Ferguson
	President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Paul W. Fehlman, has executed this certification in connection with the filing with the Securities and Exchange Commission of AZZ incorporated’s Yearly Report on Form 10-K for the period ended February 28, 2015 (the “Report”). The undersigned hereby certifies that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of AZZ incorporated.

Dated: April 22, 2015	/s/ Paul W. Fehlman
	Paul W. Fehlman
	Senior Vice President and
	Chief Financial Officer

XML

Operating segments - Narrative (Details)	12 Months Ended
	Feb. 28, 2015 operating_segment
Segment Reporting [Abstract]
Number of operating segments	2

XML

Commitments and Contingencies (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Commitments and Contingencies Disclosure [Abstract]
Minimum operating lease term		1 year
Rent expense	$ 14,071,000	$ 11,047,000	$ 7,808,459

XML

Income Taxes (Notes)

12 Months Ended

Feb. 28, 2015

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

The provision for income taxes consists of:

		2015			2014			2013
Income before income taxes:
Domestic		$	76,434		$	83,495		$	92,334
Foreign		13,696			10,416			2,035
Income before income taxes		$	90,130		$	93,911		$	94,369
Current provision:
	Federal	$	3,770		$	28,901		$	26,330
	Foreign	3,025			1,903			(2,600		)
	State and Local	2,575			4,382			4,136
Total current provision for income taxes		$	9,370		$	35,186		$	27,866
Deferred provision (benefit):
	Federal	$	15,455		$	(2,143	)	$	2,024
	Foreign	(858		)	1,230			3,455
	State and Local	1,220			41			568
Total deferred provision for income taxes		$	15,817		$	(872	)	$	6,047
Total provision for income taxes		$	25,187		$	34,314		$	33,913

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

	2015		2014		2013
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Permanent differences	0.6		1.3		0.2
State income taxes, net of federal income tax benefit	2.7		3.0		3.1
Benefit of Section 199 of the Code, manufacturing deduction	(2.4	)	(2.2	)	(2.6	)
Valuation allowance	(3.4	)	—		—
Tax credits	(3.4	)	—		—
Foreign tax rate differential	(0.7	)	(0.6	)	0.2
Other	(0.5	)	—		—
Effective income tax rate	27.9	%	36.5	%	35.9	%

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:

	2015			2014
	(In thousands)
Deferred income tax assets:
Employee related items	$	4,690		$	4,314
Inventories	1,080			839
Accrued warranty	893			504
Accounts receivable	565			2,342
Net operating loss carry forward	1,919			4,268
Other	—			606
	9,147			12,873
Less: valuation allowance	(1,588		)	(3,793		)
Total deferred income tax assets	7,559			9,080
Deferred income tax liabilities:
Depreciation methods and property basis differences	(28,611		)	(19,995		)
Other assets and tax-deductible goodwill	(26,161		)	(20,719		)
Total deferred income tax liabilities	(54,772		)	(40,714		)
Net deferred income tax liabilities	$	(47,213	)	$	(31,634	)

In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. As of fiscal year end 2015, we have not made a provision for U.S. or additional foreign withholding taxes on approximately $17.5 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries.

The following table summarizes the Net Operating Loss Carry forward:

	2015		2014
	(In thousands)
Federal	$	—	$	1,089
State	$	1,919	$	1,919
Foreign	$	—	$	1,260

As of February 28, 2015, the Company had state NOL carry forwards of $31.9 millionwhich, if unused, will begin to expire in 2025.

We believe that it is more likely than not that the benefit from certain state NOL carry forwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.6 million on the deferred tax assets related to these state NOL carry forwards. We will review this risk within the next fiscal year and may conclude that a significant portion of the valuation allowance will no longer be needed. The tax benefits related to any reversal of the valuation allowance will be recognized as a reduction of income tax expense.

As of fiscal 2015, a portion of our deferred tax assets were the result of state NOL carry forwards. A valuation allowance of $1.6 million and $3.8 million was recorded against our gross deferred tax asset balance as of fiscal year end 2015 and 2014, respectively. For the year ended February 28, 2015, we recorded a net valuation allowance release of $2.2 million (comprising of a full-year valuation release of $1.2 million related to foreign operations, and $1.0 million related to NOLs from purchased stock of Aquilex SRO, in March 2013), on the basis of local tax authority reassessment of the amount which was realized in local tax jurisdictions and on local income tax returns.

XML

Costs and Estimated Earnings On Uncompleted Contracts - Accumulated Costs Net Of Billings (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Contractors [Abstract]
Costs incurred on uncompleted contracts	$ 126,882	$ 158,224
Estimated earnings	50,487	65,063
Total costs and estimated earnings	177,369	223,287
Less billings to date	148,367	199,083
Total costs net of billings	$ 29,002	$ 24,204

XML

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Statement of Comprehensive Income [Abstract]
Interest rate swap, income tax	$ (29)	$ (29)	$ (29)

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Summary of Significant Accounting Policies (Notes)

12 Months Ended

Feb. 28, 2015

Accounting Policies [Abstract]

Summary of significant accounting policies

Summary of significant accounting policies

Organization-AZZ incorporated (the “Company” “AZZ” or “We”) operates primarily in the United States of America and Canada and has recently begun operating in China, Brazil, Poland and the Netherlands. Information about the Company's operations by segment is included in Note 13 to the consolidated financial statements.

Basis of consolidation—The consolidated financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates—The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentrations of credit risk—Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable.

The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the United States and Canada, as well as Europe, China and Brazil. The Company's policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company's banking relationships and has not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the Company’s diversity by virtue of two operating segments, the number of customers, and the absence of a concentration of trade accounts receivable in a small number of customers. The Company performs continuous evaluations of the collectability of trade accounts receivable and allowance for doubtful accounts based upon historical losses, economic conditions and customer specific events. After all collection efforts are exhausted and an account is deemed uncollectible, it is written off against the allowance for doubtful accounts. Accounts receivable written off, net of recoveries, in fiscal 2015, 2014 and 2013 were approximately $0.7 million, $0.3 million and $0.3 million, respectively. Collateral is usually not required from customers as a condition of sale.

Revenue recognition—The Company recognizes revenue for the Energy Segment upon transfer of title and risk to customer or based upon the percentage of completion method of accounting for electrical products built to customer specifications and services under long-term contracts. We typically recognize revenue for the Galvanizing Services Segment at completion of the service unless we specifically agree with the customer to hold its material for a predetermined period of time after the completion of the galvanizing process and, in that circumstance, we invoice and recognize revenue upon shipment. Customer advanced payments presented in the balance sheets arise from advanced payments received from our customers prior to shipment of the product and are not related to revenue recognized under the percentage of completion method. The extent of progress for revenue recognized using the percentage of completion method is measured by the ratio of contract costs incurred to date to total estimated contract costs at completion. Contract costs include direct labor and material and certain indirect costs. Selling, general and administrative costs are charged to expense as incurred.

Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are able to be determined. The assumptions made in determining the estimated cost could differ from actual performance resulting in a different outcome for profits or losses than anticipated.

Cash and cash equivalents—The Company considers cash and cash equivalents to include cash on hand, deposits with banks and all highly liquid investments with an original maturity of three months or less.

Inventories—Cost is determined principally using a weighted-average method for the Energy Segment and the first-in-first-out (FIFO) method for the Galvanizing Services Segment.

Property, plant and equipment—For financial reporting purposes, depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows:

Buildings and structures	10-25 years
Machinery and equipment	3-15 years
Furniture and fixtures	3-15 years
Automotive equipment	3 years
Computers and software	3 years

Maintenance and repairs are charged to expense as incurred; renewals and betterments that significantly extend the useful life of the asset are capitalized.

Long-lived assets, intangible assets and goodwill—Purchased intangible assets included on the balance sheets are comprised of customer lists, backlogs, engineering drawings and non-compete agreements. Such intangible assets are being amortized using the straight-line method over the estimated useful lives of the assets ranging from two to nineteen years. The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value. For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. As of February 28, 2015, no impairment of long-lived assets, intangible assets or goodwill was determined.

Debt issue costs—Debt issue costs, included in other assets, are amortized using the effective interest rate method over the term of the debt.

Income taxes—We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

As applicable, we record uncertain tax positions in accordance with GAAP on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We currently do not have any unrecognized tax benefits to record related to U.S. federal, state or, foreign tax exposure. We continue to review our tax exposure for any significant need to record unrecognized tax benefits in the future.

The Company is subject to taxation in the U.S. and various state, provincial and local and foreign jurisdictions. With few exceptions, as of fiscal 2015, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2012.

Share-based compensation—The Company has granted stock options, stock appreciation rights or restricted stock units for a fixed number of shares to employees and directors. A discussion of share-based compensation can be found in Note 11 to the Consolidated Financial Statements.

Financial instruments—Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2, or 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included with Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt. Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our outstanding Senior Notes. For fiscal 2015 and 2014 the fair value of our senior outstanding notes, as described in Note 12 to the Consolidated Financial Statements, was approximately $164.4 million and $179.4 million, respectively. These fair values were determined using the discounted cash flow at the market rate as well as the applicable market interest rates classified as Level 2 inputs. During fiscal 2015 a principal payment was made in the amount of $14.3 million related to the $100.0 million unsecured Senior Notes due March 31, 2018, which accounts for a portion of the decrease in fair value for the compared periods in conjunction with lower market interest rates.

Derivative financial instruments—From time to time, the Company uses derivatives to manage interest rate risk. The Company’s policy is to use derivatives for risk management purposes only, which includes maintaining the ratio between the Company’s fixed and floating rate debt obligations that management deems appropriate, and prohibits entering into such contracts for trading purposes. The Company enters into derivatives only with counterparties (primarily financial institutions) which have substantial financial wherewithal to minimize credit risk. As the result of the recent global financial crisis, a number of financial institutions have failed or required government assistance, and counterparties considered substantial may develop credit risk. The amount of gains or losses from the use of derivative financial instruments has not been and is not expected to be material to the Company’s consolidated financial statements. As of February 28, 2015, the Company had no derivative financial instruments.

Warranty reserves—Within other accrued liabilities, a reserve has been established to provide for the estimated future cost of warranties on a portion of the Company’s delivered products. Management periodically reviews the reserves, and adjustments are made accordingly. A provision for warranty on products is made on the basis of the Company’s historical experience and identified warranty issues. Warranties cover such factors as non-conformance to specifications and defects in material and workmanship.

The following is a roll-forward of amounts accrued for warranties (in thousands):

Balance at February 29, 2012	$	1,670
Warranty costs incurred	(2,026		)
Additions charged to income	2,429
Balance at February 28, 2013	$	2,073
Warranty costs incurred	(2,246		)
Additions charged to income	1,511
Balance at February 28, 2014	$	1,338
Warranty costs incurred	(1,294		)
Additions charged to income	2,243
Balance at February 28, 2015	$	2,287

Accumulated Other Comprehensive Income (Loss)—On January 21, 2011, we entered into a Note Purchase Agreement, (the “2011 Agreement”) and incurred fixed rate, long-term indebtedness of $125.0 million in relation to the 2011 Agreement. See Note 10 to the Consolidated Financial Statements. In anticipation of the issuance of Senior Notes thereunder, we entered into a treasury lock hedging transaction with Bank of America Merrill Lynch (BAML) in order to eliminate the variability of cash flows on the forecasted fixed rate coupon of the debt during the pre-issuance period. The hedging transaction settled during the Company’s third fiscal quarter of fiscal 2011, and the Company received a payment from BAML in the amount of $0.8 million resulting therefrom. The notional value of the hedge was $75.0 million and qualified for hedge accounting as a cash flow hedge. The gain on the settlement was recorded as a component of Accumulated Other Comprehensive Income (Loss) and is being amortized to interest expense in the form of a credit over the life of the 10 year loan. Amortization of this gain to interest expense was recorded in a credit of $0.1 million for fiscal 2015, 2014, and 2013.

Accumulated Other Comprehensive Income (Loss) also includes foreign currency translation adjustments from our foreign subsidiaries consisting of Aquilex SRO, AZZ Trading (Shanghai), Blenkhorn and Sawle, Galvan, Galvcast and G3.

Foreign Currency Translation—The local currency is the functional currency for the Company’s foreign operations. Related assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet date, and revenues and expenses are translated at weighted-average exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income (loss).

Accruals for Contingent Liabilities— The amounts we record for estimated claims, such as self-insurance programs, warranty, environmental and other contingent liabilities, requires us to make judgments regarding the amount of expenses that will ultimately be incurred. We use past history and experience and other specific circumstances surrounding these claims in evaluating the amount of liability that should be recorded. Actual results may be different than what we estimate. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015.

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Quarterly Financial Information, Unaudited (Notes)

12 Months Ended

Feb. 28, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly financial information, Unaudited

uarterly financial data (Unaudited)

	Quarter ended
	May 31, 2014		August 31, 2014		November 30, 2014		February 28, 2015
	(in thousands, except per share data)
Net sales	$	216,126	$	193,416	$	224,833	$	182,312
Gross profit	55,389		42,100		60,775		47,432
Net income	14,925		13,769		19,965		16,283
Basic earnings per share	0.58		0.54		0.78		0.63
Diluted earnings per share	0.58		0.53		0.77		0.63

	Quarter ended
	May 31, 2013		August 31, 2013		November 30, 2013		February 28, 2014
	(in thousands, except per share data)
Net sales	$	183,175	$	189,782	$	197,755	$	181,011
Gross profit	50,715		55,905		53,361		45,724
Net income	14,547		16,363		18,445		10,242
Basic earnings per share	0.57		0.64		0.72		0.40
Diluted earnings per share	0.57		0.64		0.72		0.40

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Stock Compensation - Non-vested Restricted Stock Activity (Details) (Restricted Stock Units (RSUs) [Member], USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2013
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-Vested Balance as of February 29, 2013 (shares)	70,352	109,430
Granted (shares)	48,616
Vested (shares)	(28,647)
Forfeited (shares)	(12,875)
Non-Vested Balance as of February 28, 2014 (shares)	77,446	109,430
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Non-Vested Balance as of February 29, 2013, Weight Average Grant Date Fair Value (usd per share)	$ 34.950	$ 20.730
Granted, Weighted Average Grant Date Fair Value (usd per share)	$ 42.89
Vested, Weighted Average Grant Date Fair Value (usd per share)	$ 28.57
Forfeited, Weighted Average Grant Date Fair Value (usd per share)	$ 40.87
Non-Vested as of February 28, 2014, Weighted Average Grant Date Fair Value (usd per share)	$ 41.310	$ 20.730

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Realignment Costs (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013	Jun. 01, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 456,000			$ 3,952,000
Restructuring Charges	(3,496,000)
Gain (Loss) on Disposition of Assets	(2,651,000)	0	0
Restructuring Charges [Member]
Restructuring Cost and Reserve [Line Items]
Severance Costs	1,300,000
Gain (Loss) on Disposition of Assets	$ 2,700,000

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Goodwill and Intangible Assets (Notes)

12 Months Ended

Feb. 28, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Goodwill and intangible assets

Goodwill is not amortized but is subject to annual impairment tests. Other intangible assets are amortized over their estimated useful lives.

Changes in goodwill by segment during the year are as follows:

Segment	March 1, 2014		Acquisitions		Foreign Exchange Translation			February 28, 2015
	(In thousands)
Galvanizing Services	$	94,731	$	3,306	$	(2,499	)	$	95,538
Energy	183,825		807		(1,096		)	183,536
Total	$	278,556	$	4,113	$	(3,595	)	$	279,074

Segment	March 1, 2013		Acquisitions		Foreign Exchange Translation			February 28, 2014
	(In thousands)
Galvanizing Services	$	96,735	$	—	$	(2,004	)	$	94,731
Energy	75,151		109,636		(962		)	183,825
Total	$	171,886	$	109,636	$	(2,966	)	$	278,556

The Company completes its annual impairment analysis of goodwill on December 31st of each year. As a result, the Company determined that there was no impairment of goodwill.

Amortizable intangible assets consisted of the following as of February 28:

	2015			2014
	(In thousands)
Amortizable intangible assets
Customer related intangibles	$	159,235		$	158,913
Non-compete agreements	5,715			5,037
Trademarks	5,042			5,110
Technology	7,400			7,400
Certifications	209			232
Engineering drawings	24,600			24,600
Backlog	8,355			8,440
	210,556			209,732
Less accumulated amortization	(56,699		)	(39,300		)
	$	153,857		$	170,432

The Company recorded amortization expense of $18.0 million, $18.2 million and $10.0 million for fiscal 2015, 2014 and 2013, respectively. The following table projects the estimated amortization expense for the five succeeding fiscal years and thereafter.

	(In thousands)
2016	$	15,666
2017	15,402
2018	14,812
2019	14,136
2020	13,666
Thereafter	80,175
Total	$	153,857

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Summary of Significant Accounting Policies - Debt (Details) (Senior Notes [Member], USD $)	Feb. 28, 2015	Feb. 28, 2014	Jan. 21, 2011
Unsecured Senior Notes Due March 31, 2018 [Member]
Debt Instrument [Line Items]
Fair value of notes	$ 164,418,000	$ 179,377,000
Debt Instrument, Annual Principal Payment	14,300,000
Debt instrument, face amount	100,000,000
Unsecured Senior Notes Due January 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			$ 125,000,000

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Commitments and Contingencies - Product Warranty Accrual (Details) (USD $)	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013	Feb. 29, 2012
Loss Contingencies [Line Items]
Reserve for warranty	$ 2,287,000	$ 1,338,000	$ 2,073,000	$ 1,670,000
Accrued warranty	2,287,310	1,337,717
Energy [Member]
Loss Contingencies [Line Items]
Letters of credit outstanding		$ 13,000,000

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Employee Benefit Plans (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Postemployment Benefits [Abstract]
Costs recognized for postemployement benefit plan	$ 10,042,744	$ 10,437,080	$ 10,492,458

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Stock Compensation (Tables)

12 Months Ended

Feb. 28, 2015

Share-based Compensation [Abstract]

Restricted Stock Unit Awards Non-Vested

Activity in our non-vested restricted stock unit awards for the year ended February 28, 2015 was as follows:

	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-Vested Balance as of February 28, 2014	70,352		$	34.95
Granted	48,616		42.89
Vested	(28,647	)	28.57
Forfeited	(12,875	)	40.87
Non-Vested Balance as of February 28, 2015	77,446		$	41.31

Stock Appreciation Rights and Option Awards

A summary of the Company’s stock appreciation rights and option awards activity for the three years ended February 28, were as follows:

	2015				2014				2013
	Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price
Outstanding at beginning of year	396,174		$	26.64	439,863		$	19.12	573,000		$	15.46
Granted	126,532		43.92		116,032		45.20		118,107		25.77
Exercised	(98,942	)	22.79		(159,721	)	19.19		(251,240	)	13.84
Forfeited	(46,782	)	44.14		—		—		(4	)	2.11
Outstanding at end of year	376,982		$	31.27	396,174		$	26.64	439,863		$	19.12
Exercisable at end of year	204,107		$	21.55	153,343		$	15.32	115,395		$	13.14
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year			$	16.94			$	13.68			$	8.81

Share-based Compensation Activity

The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2015.

Range of Exercise Prices	Total Options/ SAR’s	Average Remaining Life	Weighted Average Exercise Price		Options / SAR’s Currently   Exercisable	Weighted Average Exercise Price
$9.06	48,510	1.00	$	9.06	48,510	$	9.06
$15.84	54,546	2.00	$	15.84	54,546	$	15.84
$20.91	40,950	3.00	$	20.91	40,950	$	20.91
$25.67	38,932	4.00	$	25.67	24,082	$	25.67
$39.65	950	5.00	$	39.65	—	$	39.65
$43.92	112,411	6.00	$	43.92	8,089	$	43.92
$45.26	40,000	6.00	$	45.26	10,000	$	45.26
$45.36	39,924	5.00	$	45.36	17,677	$	45.36
$46.43	759	5.00	$	46.43	253	$	46.43
$ 9.06 - $46.43	376,982	4.13	$	31.27	204,107	$	21.55

Share-based Compensation Fair Value Assumptions

Assumptions used in the Black-Scholes option pricing model for the last three fiscal years were as follows for all stock appreciation rights plans:

	2015	2014	2013
Expected term in years	4.5	4.5	4.5
Expected dividend yield	1.20% – 1.32%	1.21% - 1.49%	1.76% – 1.95%
Expected price volatility	35.39% – 40.00%	36.34% – 53.00%	45.00% – 47.83%
Risk-free interest rate	2.32 – 2.73	0.75 - 2.98	0.59 – 0.89

Share-based compensation expense and related income tax

Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows:

Year Ended February 28,	2015		2014		2013
	(In thousands)
Compensation Expense	$	4,080	$	3,703	$	3,175
Income tax benefits	$	1,428	$	1,296	$	1,111

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Schedule II : Valuation and Qualiying Accounts and Reserves (Notes)

12 Months Ended

Feb. 28, 2015

Valuation and Qualifying Accounts [Abstract]

Schedule II : Valuation and Qualifying Accounts and Reserves

Schedule II

AZZ incorporated

Valuation and Qualifying Accounts and Reserves

(In thousands)

	Year Ended February 28,
	2015			2014			2013
Allowance for Doubtful Accounts
Balance at beginning of year	$	1,744		$	1,000		$	898
Additions (reductions) charged or credited to income	458			(116		)	446
Balances written off, net of recoveries	(700		)	(294		)	(344		)
Other	—			1,184			—
Effect of exchange rate	(30		)	(30		)	—
Balance at end of year	$	1,472		$	1,744		$	1,000

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Subsequent Events (Notes)

12 Months Ended

Feb. 28, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

None.

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Summary of Significant Accounting Policies - Intangible Assets (Details)	12 Months Ended
	Feb. 28, 2015
Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life	2 years
Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Useful life	19 years

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Realignment Costs (Tables)

12 Months Ended

Feb. 28, 2015

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table shows changes in the realignment accrual:

	Realignment Accrual
	(in thousands)
Realignment costs accrued	$	3,952
Realignment costs utilized	(3,496		)
Balance at February 28, 2015	$	456

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Operating segments (Tables)

12 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Operations and assets by segment

Information regarding operations and assets by segment was as follows:

	2015			2014			2013
Net sales:	(In thousands)
Energy	$	458,339		$	416,106		$	233,555
Galvanizing Services	358,348			335,617			337,039
	$	816,687		$	751,723		$	570,594
Operating income:
Energy	$	38,703		$	44,513		$	32,073
Galvanizing Services	88,562			87,808			88,505
Corporate	(20,440		)	(32,207		)	(22,594		)
Total Operating Income	106,825			100,114			97,984
Interest expense	16,561			18,407			13,073
Net gain on sale of property, plant and equipment and insurance proceeds	(2,525		)	(8,039		)	(8,303		)
Other (income) expense, net	2,659			(4,165		)	(1,155		)
Income before income taxes	$	90,130		$	93,911		$	94,369
Depreciation and amortization:
Energy	$	20,725		$	19,959		$	8,587
Galvanizing Services	23,964			22,008			19,501
Corporate	1,400			1,338			1,275
	$	46,089		$	43,305		$	29,363
Expenditures for acquisitions, net of cash, and property, plant and equipment:
Energy	$	10,647		$	284,514		$	79,513
Galvanizing Services	26,928			33,282			81,604
Corporate	3,320			1,378			864
	$	40,895		$	319,174		$	161,981
Total assets:
Energy	$	523,247		$	542,809		$	261,074
Galvanizing Services	378,823			378,358			370,142
Corporate	34,844			32,086			62,989
	$	936,914		$	953,253		$	694,205
Geographic net sales:
United States	$	631,544		$	601,674		$	503,699
Other countries	189,855			150,049			66,895
Eliminations	(4,712		)	—			—
	$	816,687		$	751,723		$	570,594
Property, plant and equipment, net:
United States	$	173,712		$	171,727		$	127,410
Canada	20,289			23,779			27,066
Other Countries	2,582			2,133			—
	$	196,583		$	197,639		$	154,476

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Summary of Significant Accounting Policies - Hedging Transactions (Details) (USD $)	3 Months Ended	12 Months Ended
	Nov. 30, 2011	Feb. 28, 2015	Feb. 28, 2014	Oct. 01, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Loan term		10 years
Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Proceeds from cash flow hedge	$ 834,416
Notional amount of hedge				75,000,000
Interest rate reclassified to earnings		$ 83,442	$ 83,442

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Property, Plant and Equipment (Tables)

12 Months Ended

Feb. 28, 2015

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

Following is a summary of property, plant and equipment:

	2015			2014
	(In thousands)
Land	$	16,004		$	15,116
Building and structures	122,539			117,765
Machinery and equipment	184,921			175,955
Furniture, fixtures, software and computers	21,716			20,497
Automotive equipment	2,351			2,429
Construction in progress	12,193			8,277
	359,724			340,039
Less accumulated depreciation	(163,141		)	(142,400		)
Net property, plant, and equipment	$	196,583		$	197,639

XML

Goodwill and Intangible Assets - Narrative (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2014	Feb. 28, 2013	Feb. 29, 2012	Feb. 28, 2015
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ 39,300			$ 56,699
Amortization of intangible assets	$ 18,039	$ 18,214	$ 9,999

XML

Stock Compensation (Details Textual) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013	Feb. 29, 2012
Share Based Compensation (Textual) [Abstract]
Number of share-based compensation plans	1
Shares authorized (shares)	1,500,000
Share for future issuance (shares)	1,473,148
Total intrinsic value of options exercised	$ 4,500,000
Unrecognized compensation cost	4,115,200
Unrecongized compensation cost, amortization period	2 years 7 months 28 days
Proceeds from Stock Options Exercised	0	0	16,000
Tax benefits from stock options exercised	259,000	1,602,000	1,283,000
Employee Stock Purchase Plan [Member]
Share Based Compensation (Textual) [Abstract]
Granted option lower than	85.00%
Restricted common stock under plan	25,000
Common stock purchased during period (shares)	5,000
Directors Grants [Member]
Share Based Compensation (Textual) [Abstract]
Shares of company common stock (shares)	2,000		1,000	1,000
Value of common stock grants (usd per share)	$ 44.90	$ 36.70	$ 32.51
Restricted Stock Units (RSUs) [Member]
Share Based Compensation (Textual) [Abstract]
Vesting ratably term	3 years
Total fair value of vested shares	818,519	1,900,000	500,000
Non-vested shares outstanding (shares)	77,446	70,352	109,430
Non-vested shares outstanding, weighted average grant date fair value (usd per share)	$ 41.310	$ 34.950	$ 20.730
Stock Appreciation Rights SARS and Stock Option [Member]
Share Based Compensation (Textual) [Abstract]
Vesting ratably term		3 years
Term for the contract		7 years
Outstanding average contractual term	4 years 1 month 18 days
Outstanding aggregate intrinsic value	17,100,000
Average remaining contractual term		2 years 9 months 25 days
Aggregate remaining intrinsic value		$ 9,300,000

XML

Goodwill and Intangible Assets - Schedule of Amortizable Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Amortizable intangible assets
Finite-lived intangible assets, gross	$ 210,556	$ 209,732
Less accumulated amortization	(56,699)	(39,300)
Finite-Lived Intangible Assets, Net	153,857	170,432
Customer-Related Intangible Assets [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	159,235	158,913
Noncompete Agreements [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	5,715	5,037
Trademarks [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	5,042	5,110
Technology [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	7,400	7,400
Certification Marks [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	209	232
Engineering Drawings [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	24,600	24,600
Order or Production Backlog [Member]
Amortizable intangible assets
Finite-lived intangible assets, gross	$ 8,355	$ 8,440

XML

Acquisitions (Tables)

12 Months Ended

Feb. 28, 2015

Aquilex [Member]

Business Acquisition [Line Items]

Schedule of assets acquired and liabilities assumed

The excess of the purchase price over the net identifiable assets was recorded as goodwill. The following table summarizes the estimated fair value of the assets acquired and liabilities of Aquilex SRO assumed at the date of acquisition:

	($ in thousands)
Current Assets	$	78,619
Property and Equipment	27,669
Intangible Assets	87,100
Goodwill	109,636
Other Assets	205
Total Assets Acquired	303,229
Current Liabilities	(27,527		)
Net Assets Acquired	$	275,702

Schedule of proforma information

The following unaudited pro forma information assumes that the acquisition of Aquilex SRO took place on March 1, 2012 for the income statements for the years ended February 28, 2014, and February 28, 2013.

	2014		2013
	(Unaudited) (In thousands, except for per share amounts)
Net sales:	$	774,818	$	783,126
Net Income	$	60,080	$	58,372
Earnings Per Common Share
Basic Earnings Per Share	$	2.35	$	2.31
Diluted Earnings Per Share	$	2.34	$	2.28

Nuclear Logistics Incorporated [Member]

Business Acquisition [Line Items]

Schedule of assets acquired and liabilities assumed

	($ in thousands)
Current Assets	$	22,901
Property and Equipment	1,416
Intangible Assets	50,600
Goodwill	32,323
Other Assets	58
Total Assets Acquired	107,298
Current Liabilities	(17,866		)
Long Term Liabilities	(12,388		)
Net Assets Acquired	$	77,044

Schedule of proforma information

The following unaudited pro forma information assumes that the acquisition of NLI took place on March 1, 2012 for the income statements for the year ended February 28, 2013.

	2013
	(Unaudited) (In thousands, except for per share amounts)
Net sales:	$	583,743
Net Income	$	60,602
Earnings Per Common Share
Basic Earnings Per Share	$	2.39
Diluted Earnings Per Share	$	2.37

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Stock Compensation - Schedule By Exercise Price Range (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013	Feb. 29, 2012
Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Options/ SAR’s (shares)	376,982	396,174	439,863	573,000
Weighted Average Exercise Price, Outstanding (usd per share)	$ 31.27	$ 26.64	$ 19.12	$ 15.46
Options / SAR’s Currently Exercisable (shares)	204,107	153,343	115,395
Weighted Average Exercise Price, Exercisable (usd per share)	$ 21.55	$ 15.32	$ 13.14
$9.06 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 9.06
Total Options/ SAR’s (shares)	48,510
Average Remaining Life	1 year
Weighted Average Exercise Price, Outstanding (usd per share)	$ 9.06
Options / SAR’s Currently Exercisable (shares)	48,510
Weighted Average Exercise Price, Exercisable (usd per share)	$ 9.06
$15.84 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 15.84
Total Options/ SAR’s (shares)	54,546
Average Remaining Life	2 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 15.84
Options / SAR’s Currently Exercisable (shares)	54,546
Weighted Average Exercise Price, Exercisable (usd per share)	$ 15.84
$20.91 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 20.905
Total Options/ SAR’s (shares)	40,950
Average Remaining Life	3 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 20.91
Options / SAR’s Currently Exercisable (shares)	40,950
Weighted Average Exercise Price, Exercisable (usd per share)	$ 20.91
$25.67 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 25.67
Total Options/ SAR’s (shares)	38,932
Average Remaining Life	4 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 25.67
Options / SAR’s Currently Exercisable (shares)	24,082
Weighted Average Exercise Price, Exercisable (usd per share)	$ 25.67
$45.36 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 39.65
Total Options/ SAR’s (shares)	950
Average Remaining Life	5 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 39.65
Options / SAR’s Currently Exercisable (shares)	0
Weighted Average Exercise Price, Exercisable (usd per share)	$ 39.65
$45.26 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 43.92
Total Options/ SAR’s (shares)	112,411
Average Remaining Life	6 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 43.92
Options / SAR’s Currently Exercisable (shares)	8,089
Weighted Average Exercise Price, Exercisable (usd per share)	$ 43.92
$42.08 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 45.26
Total Options/ SAR’s (shares)	40,000
Average Remaining Life	6 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 45.26
Options / SAR’s Currently Exercisable (shares)	10,000
Weighted Average Exercise Price, Exercisable (usd per share)	$ 45.26
$46.43 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 45.36
Total Options/ SAR’s (shares)	39,924
Average Remaining Life	5 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 45.36
Options / SAR’s Currently Exercisable (shares)	17,677
Weighted Average Exercise Price, Exercisable (usd per share)	$ 45.36
$39.65 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices (usd per share)	$ 46.43
Total Options/ SAR’s (shares)	759
Average Remaining Life	5 years
Weighted Average Exercise Price, Outstanding (usd per share)	$ 46.43
Options / SAR’s Currently Exercisable (shares)	253
Weighted Average Exercise Price, Exercisable (usd per share)	$ 46.43
$9.06 - $45.36 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, lower limit (usd per share)	$ 9.06
Exercise price range, upper limit (usd per share)	$ 46.43
$9.06 - $45.36 [Member] | Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Options/ SAR’s (shares)	376,982
Average Remaining Life	4 years 1 month 18 days
Weighted Average Exercise Price, Outstanding (usd per share)	$ 31.27
Options / SAR’s Currently Exercisable (shares)	204,107
Weighted Average Exercise Price, Exercisable (usd per share)	$ 21.55

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Acquisitions

12 Months Ended

Feb. 28, 2015

Business Combinations [Abstract]

Acquisitions

Acquisitions

On June 30, 2014, we completed our acquisition of substantially all the assets of Zalk Steel & Supply Co. (“Zalk Steel”), a Minneapolis, Minnesota-based galvanizing company, for a purchase price of $10.5 million and the assumption of $0.3 million in liabilities.  The Company recorded $3.3 million of goodwill, which has been allocated to the Galvanizing Services Segment, and $3.4 million of intangible assets associated with this acquisition.  The intangible assets associated with the acquisition consist primarily of trade names, customer relationships and non-compete agreements.  These intangible assets are being amortized on a straight-line basis over a period of 19 years for customer relationships, 19 years for trade names, and 5 years for non-compete agreements.  Zalk Steel was acquired to expand AZZ's existing geographic footprint in North America. The goodwill arising from this acquisition was allocated to the Galvanizing Segment and is deductible for income tax purposes.

Unaudited pro forma results of operations assuming the Zalk Steel acquisition had taken place at the beginning of each period are not provided because the historical operating results of Zalk Steel were not significant and pro forma results would not be significantly different from reported results for the periods presented.

On March 29, 2013, we completed our acquisition of all of the equity securities of Aquilex Specialty Repair and Overhaul LLC, a Delaware limited liability company (“Aquilex SRO”), pursuant to the terms of the Securities Purchase Agreement dated February 22, 2013 (the “Purchase Agreement”). Aquilex SRO provides the energy industry with specialty repair and overhaul solutions designed to improve mechanical integrity and extend component life. Aquilex SRO offers services to a diverse base of blue-chip customers in the nuclear, fossil power, refining, chemical processing, pulp and waste-to-energy industries, serving clients that place a high value on reliability, quality and safety. Aquilex SRO’s offering is differentiated through advanced proprietary tooling and process technologies delivered by a uniquely skilled specialized workforce. The acquisition is part of our strategy to expand our offerings in the Energy Segment to enhance our presence in the power generation market. The Purchase Agreement provided for AZZ's acquisition of all equity securities of Aquilex SRO for cash consideration in the amount of $275.7 million, which was comprised of $271.8 million as cash paid at closing and $3.9 million subsequently paid in connection with a purchase price adjustment based on working capital pursuant to the Purchase Agreement.

Under the acquisition method of accounting, the total purchase price was allocated to Aquilex SRO’s net identifiable assets based on their estimated fair values as of March 29, 2013, the date on which AZZ acquired control of Aquilex SRO through cash purchase. The excess of the purchase price over the net identifiable assets was recorded as goodwill. The following table summarizes the estimated fair value of the assets acquired and liabilities of Aquilex SRO assumed at the date of acquisition:

	($ in thousands)
Current Assets	$	78,619
Property and Equipment	27,669
Intangible Assets	87,100
Goodwill	109,636
Other Assets	205
Total Assets Acquired	303,229
Current Liabilities	(27,527		)
Net Assets Acquired	$	275,702

The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also synergies expected to arise. This goodwill has been allocated to the Energy Segment and will not be deductible for income tax purposes. All of the $87.1 million of intangible assets acquired are assigned to customer related intangibles and technology. The intangible assets are being amortized over 14 years for customer related intangibles, 19 years for trade names and 3-9 years for technology on a straight line basis. During fiscal 2014, we expensed $5.4 million in acquisition costs related to the acquisition of Aquilex SRO.

The following unaudited pro forma information assumes that the acquisition of Aquilex SRO took place on March 1, 2012 for the income statements for the years ended February 28, 2014, and February 28, 2013.

	2014		2013
	(Unaudited) (In thousands, except for per share amounts)
Net sales:	$	774,818	$	783,126
Net Income	$	60,080	$	58,372
Earnings Per Common Share
Basic Earnings Per Share	$	2.35	$	2.31
Diluted Earnings Per Share	$	2.34	$	2.28

On January 2, 2013, we acquired G3 Galvanizing Limited ("G3"), a galvanizing operation in Halifax, Nova Scotia. This acquisition is part of the stated AZZ strategy to continue the geographic expansion of its served markets that should provide a basis for continued growth of the Galvanizing Services Segment of AZZ. The purchase price paid in connection with the asset purchase was $12.0 million and the assumption of $3.1 million in liabilities. Goodwill of $4.2 million resulting from the acquisition has been allocated to the Galvanizing Services Segment and will not be deductible for tax purposes. The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also reflects the synergies that are expected to arise. During fiscal 2013, we expensed $0.5 million in acquisition costs related to the acquisition of G3.

On October 1, 2012, we completed the acquisition of substantially all of the assets of Galvcast Manufacturing Inc. (“Galvcast”), a Canadian galvanizing company with operations in Ontario, and certain real property owned by an affiliate of Galvcast. The purchase price paid in connection with the asset purchase was $48.0 million and the assumption of approximately $0.9 million in liabilities. Goodwill of $15.7 million resulting from the acquisition has been allocated to the Galvanizing Services Segment and 75% of the goodwill will be deductible for tax purposes. The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also reflects the synergies that are expected to arise. This acquisition was made to compliment and expand our existing geographic Canadian footprint. During fiscal 2013, we expensed $0.3 million in acquisition costs related to the acquisition of Galvcast.

On June 1, 2012, we completed the acquisition of substantially all of the assets of Nuclear Logistics Incorporated (“NLI”). The purchase price paid in connection with the asset purchase was $77.0 million, net of cash acquired, along with the assumption of certain liabilities and the payoff of $3.8 million of notes payable at closing. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. During fiscal 2013, we expensed $0.9 million in acquisition costs related to the acquisition of NLI.

The following unaudited pro forma information assumes that the acquisition of NLI took place on March 1, 2012 for the income statements for the year ended February 28, 2013.

	2013
	(Unaudited) (In thousands, except for per share amounts)
Net sales:	$	583,743
Net Income	$	60,602
Earnings Per Common Share
Basic Earnings Per Share	$	2.39
Diluted Earnings Per Share	$	2.37

The total purchase price was allocated to NLI’s net tangible and identifiable intangible assets based on their estimated fair values as of June 1, 2012, the date on which AZZ acquired control of NLI. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill and will be allocated to the Energy Segment. The goodwill will be deductible for income tax purposes. The goodwill arising from this acquisition is mainly attributable to business synergies expected to arise between NLI and other AZZ subsidiaries along with the long term growth that is projected at NLI. The potential earn out payment with respect to NLI, as described above, was classified as a long term liability for purposes of the purchase price allocation, however, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. AZZ has made an allocation of the purchase price as follows:

	($ in thousands)
Current Assets	$	22,901
Property and Equipment	1,416
Intangible Assets	50,600
Goodwill	32,323
Other Assets	58
Total Assets Acquired	107,298
Current Liabilities	(17,866		)
Long Term Liabilities	(12,388		)
Net Assets Acquired	$	77,044

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Accounts Receivable, Allowance for Doubtful Accounts	$ 1,472	$ 1,744
Common Stock, Par Value (usd per share)	$ 1	$ 1
Common Stock, Shares Authorized (shares)	100,000,000	100,000,000
Common Stock, Value, Issued	$ 25,732	$ 25,577

XML

Consolidated Statement of Shareholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Balance, beginning balance at Feb. 29, 2012	$ 287,609	$ 25,218	$ 14,201	$ 247,060	$ 1,304	$ (174)
Balance, beginning balance (shares) at Feb. 29, 2012		25,218
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	15	7	8
Stock compensation (shares)		14
Stock compensation	3,175	14	3,161
Restricted Stock Units	(413)		(517)			104
Stock Issued for SARs, Shares		90
Stock Issued for SARs	(1,192)	90	(1,297)			15
Employee Stock Purchase Plan (shares)		47
Employee Stock Purchase Plan	(916)	47	(814)			55
Federal income tax deducted on stock options	1,283		1,283
Cash dividend paid	(13,423)			(13,423)
Net income	60,456			60,456
Foreign currency translation	(4,439)				(4,439)
Interest rate swap, net of $29,205 of income tax	(54)				(54)
Balance, ending balance at Feb. 28, 2013	333,933	25,376	17,653	294,093	(3,189)	0
Balance, ending balance (shares) at Feb. 28, 2013		25,376
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation (shares)		14
Stock compensation	3,703	14	3,689
Stock Issued During Period, Shares, Restricted Stock Award, Gross		56
Restricted Stock Units	(1,337)	56	(1,393)
Stock Issued for SARs, Shares		68
Stock Issued for SARs	(1,049)	68	(1,117)
Employee Stock Purchase Plan (shares)		63
Employee Stock Purchase Plan	(1,582)	63	(1,519)
Federal income tax deducted on stock options	1,603		(1,603)
Cash dividend paid	(14,290)			(14,290)
Net income	59,597			59,597
Foreign currency translation	(7,775)				(7,775)
Interest rate swap, net of $29,205 of income tax	(54)				(54)
Balance, ending balance at Feb. 28, 2014	375,913	25,577	21,954	339,400	(11,018)	0
Balance, ending balance (shares) at Feb. 28, 2014		25,577
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock compensation (shares)		16
Stock compensation	4,080	16	4,064
Stock Issued During Period, Shares, Restricted Stock Award, Gross		21
Restricted Stock Units	(476)	21	(497)
Stock Issued for SARs, Shares		40
Stock Issued for SARs	(331)	40	(371)
Employee Stock Purchase Plan (shares)		78
Employee Stock Purchase Plan	2,375	78	2,297
Federal income tax deducted on stock options	259		259
Cash dividend paid	(14,897)			(14,897)
Net income	64,943
Foreign currency translation	(11,760)				(11,760)
Interest rate swap, net of $29,205 of income tax	(54)				(54)
Balance, ending balance at Feb. 28, 2015	$ 420,052	$ 25,732	$ 27,706	$ 389,446	$ (22,832)	$ 0
Balance, ending balance (shares) at Feb. 28, 2015		25,732

XML

Inventories (Notes)

12 Months Ended

Feb. 28, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories (net) consisted of the following:

	As of February 28,
	2015		2014
	(In thousands)
Raw materials	$	62,794	$	64,817
Work-in-process	42,001		39,781
Finished goods	2,902		2,983
	$	107,697	$	107,581

XML

Long-term Debt - Schedule of Long-term Debt (Details) (USD $)	12 Months Ended
	Feb. 28, 2014	Feb. 28, 2015
Debt Instrument [Line Items]
Total	$ 405,616,000	$ 337,848,000
Less amount due within one year	(20,848,000)	(21,866,000)
Long-term debt, exculding current maturities	384,768,000	315,982,000
Senior Notes [Member] | Unsecured Senior Notes Due January 2021 [Member]
Debt Instrument [Line Items]
Total	125,000,000	125,000,000
Senior Notes [Member] | Unsecured Senior Notes Due March 2012 through March 2018 [Member]
Debt Instrument [Line Items]
Total	71,428,000	57,143,000
Annual installments	14,285,714
Line of Credit [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Total	137,000,000	90,080,000
Term Note [Member] | Term Not Due in Quarterly Installments Beginning in June 2013 through March 2018 [Member]
Debt Instrument [Line Items]
Total	$ 72,188,000	$ 65,625,000

XML

Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Statement of Stockholders' Equity [Abstract]
Interest rate swap, income tax	$ (29)	$ (29)	$ (29)

XML

Commitments and Contingencies (Tables)

12 Months Ended

Feb. 28, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Fiscal Year:	(In thousands)
2016	$	6,955
2017	6,415
2018	4,561
2019	3,257
2020	1,204
Thereafter	2,758
Total	$	25,150

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Feb. 28, 2015

Accounting Policies [Abstract]

Basis of consolidation

Organization-AZZ incorporated (the “Company” “AZZ” or “We”) operates primarily in the United States of America and Canada and has recently begun operating in China, Brazil, Poland and the Netherlands. Information about the Company's operations by segment is included in Note 13 to the consolidated financial statements.

Basis of consolidation—The consolidated financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation.

Use of estimates

Use of estimates—The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentration of credit risk

Concentrations of credit risk—Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable.

The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the United States and Canada, as well as Europe, China and Brazil. The Company's policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company's banking relationships and has not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the Company’s diversity by virtue of two operating segments, the number of customers, and the absence of a concentration of trade accounts receivable in a small number of customers. The Company performs continuous evaluations of the collectability of trade accounts receivable and allowance for doubtful accounts based upon historical losses, economic conditions and customer specific events. After all collection efforts are exhausted and an account is deemed uncollectible, it is written off against the allowance for doubtful accounts. Accounts receivable written off, net of recoveries, in fiscal 2015, 2014 and 2013 were approximately $0.7 million, $0.3 million and $0.3 million, respectively. Collateral is usually not required from customers as a condition of sale.

Revenue recognition

Revenue recognition—The Company recognizes revenue for the Energy Segment upon transfer of title and risk to customer or based upon the percentage of completion method of accounting for electrical products built to customer specifications and services under long-term contracts. We typically recognize revenue for the Galvanizing Services Segment at completion of the service unless we specifically agree with the customer to hold its material for a predetermined period of time after the completion of the galvanizing process and, in that circumstance, we invoice and recognize revenue upon shipment. Customer advanced payments presented in the balance sheets arise from advanced payments received from our customers prior to shipment of the product and are not related to revenue recognized under the percentage of completion method. The extent of progress for revenue recognized using the percentage of completion method is measured by the ratio of contract costs incurred to date to total estimated contract costs at completion. Contract costs include direct labor and material and certain indirect costs. Selling, general and administrative costs are charged to expense as incurred.

Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are able to be determined. The assumptions made in determining the estimated cost could differ from actual performance resulting in a different outcome for profits or losses than anticipated.

Cash and cash equivalents

Cash and cash equivalents—The Company considers cash and cash equivalents to include cash on hand, deposits with banks and all highly liquid investments with an original maturity of three months or less.

Inventories

Inventories—Cost is determined principally using a weighted-average method for the Energy Segment and the first-in-first-out (FIFO) method for the Galvanizing Services Segment.

Property, plant and equipment

Property, plant and equipment—For financial reporting purposes, depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows:

Buildings and structures	10-25 years
Machinery and equipment	3-15 years
Furniture and fixtures	3-15 years
Automotive equipment	3 years
Computers and software	3 years

Maintenance and repairs are charged to expense as incurred; renewals and betterments that significantly extend the useful life of the asset are capitalized.

Intangible assets

Long-lived assets, intangible assets and goodwill—Purchased intangible assets included on the balance sheets are comprised of customer lists, backlogs, engineering drawings and non-compete agreements. Such intangible assets are being amortized using the straight-line method over the estimated useful lives of the assets ranging from two to nineteen years. The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value. For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. As of February 28, 2015, no impairment of long-lived assets, intangible assets or goodwill was determined.

Long-lived assets

The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value.

Goodwill

For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies.

Debt issue costs

Debt issue costs—Debt issue costs, included in other assets, are amortized using the effective interest rate method over the term of the debt.

Income taxes

Income taxes—We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

As applicable, we record uncertain tax positions in accordance with GAAP on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We currently do not have any unrecognized tax benefits to record related to U.S. federal, state or, foreign tax exposure. We continue to review our tax exposure for any significant need to record unrecognized tax benefits in the future.

The Company is subject to taxation in the U.S. and various state, provincial and local and foreign jurisdictions. With few exceptions, as of fiscal 2015, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2012.

Stock-based compensation

Share-based compensation—The Company has granted stock options, stock appreciation rights or restricted stock units for a fixed number of shares to employees and directors. A discussion of share-based compensation can be found in Note 11 to the Consolidated Financial Statements.

Financial Instruments

Financial instruments—Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2, or 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included with Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market.

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt. Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our outstanding Senior Notes. For fiscal 2015 and 2014 the fair value of our senior outstanding notes, as described in Note 12 to the Consolidated Financial Statements, was approximately $164.4 million and $179.4 million, respectively. These fair values were determined using the discounted cash flow at the market rate as well as the applicable market interest rates classified as Level 2 inputs. During fiscal 2015 a principal payment was made in the amount of $14.3 million related to the $100.0 million unsecured Senior Notes due March 31, 2018, which accounts for a portion of the decrease in fair value for the compared periods in conjunction with lower market interest rates.

Derivative financial instruments

Derivative financial instruments—From time to time, the Company uses derivatives to manage interest rate risk. The Company’s policy is to use derivatives for risk management purposes only, which includes maintaining the ratio between the Company’s fixed and floating rate debt obligations that management deems appropriate, and prohibits entering into such contracts for trading purposes. The Company enters into derivatives only with counterparties (primarily financial institutions) which have substantial financial wherewithal to minimize credit risk. As the result of the recent global financial crisis, a number of financial institutions have failed or required government assistance, and counterparties considered substantial may develop credit risk. The amount of gains or losses from the use of derivative financial instruments has not been and is not expected to be material to the Company’s consolidated financial statements. As of February 28, 2015, the Company had no derivative financial instruments.

Warranty reserves

Warranty reserves—Within other accrued liabilities, a reserve has been established to provide for the estimated future cost of warranties on a portion of the Company’s delivered products. Management periodically reviews the reserves, and adjustments are made accordingly. A provision for warranty on products is made on the basis of the Company’s historical experience and identified warranty issues. Warranties cover such factors as non-conformance to specifications and defects in material and workmanship.

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)—On January 21, 2011, we entered into a Note Purchase Agreement, (the “2011 Agreement”) and incurred fixed rate, long-term indebtedness of $125.0 million in relation to the 2011 Agreement. See Note 10 to the Consolidated Financial Statements. In anticipation of the issuance of Senior Notes thereunder, we entered into a treasury lock hedging transaction with Bank of America Merrill Lynch (BAML) in order to eliminate the variability of cash flows on the forecasted fixed rate coupon of the debt during the pre-issuance period. The hedging transaction settled during the Company’s third fiscal quarter of fiscal 2011, and the Company received a payment from BAML in the amount of $0.8 million resulting therefrom. The notional value of the hedge was $75.0 million and qualified for hedge accounting as a cash flow hedge. The gain on the settlement was recorded as a component of Accumulated Other Comprehensive Income (Loss) and is being amortized to interest expense in the form of a credit over the life of the 10 year loan. Amortization of this gain to interest expense was recorded in a credit of $0.1 million for fiscal 2015, 2014, and 2013.

Accumulated Other Comprehensive Income (Loss) also includes foreign currency translation adjustments from our foreign subsidiaries consisting of Aquilex SRO, AZZ Trading (Shanghai), Blenkhorn and Sawle, Galvan, Galvcast and G3.

Foreign Currency Translation

Foreign Currency Translation—The local currency is the functional currency for the Company’s foreign operations. Related assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet date, and revenues and expenses are translated at weighted-average exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income (loss).

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Costs and Estimated Earnings On Uncompleted Contracts (Tables)

12 Months Ended

Feb. 28, 2015

Contractors [Abstract]

Costs in Excess of Billings and Billings in Excess of Costs

Costs and estimated earnings on uncompleted contracts consisted of the following:

	2015		2014
	(In thousands)
Costs incurred on uncompleted contracts	$	126,882	$	158,224
Estimated earnings	50,487		65,063
	177,369		223,287
Less billings to date	148,367		199,083
	$	29,002	$	24,204

The amounts noted above are included in the accompanying consolidated balance sheets under the following captions:

	2015			2014
	(In thousands)
Cost and estimated earnings in excess of billings on uncompleted contracts	$	33,676		$	27,222
Billings in excess of costs and estimated earnings on uncompleted contracts	(4,674		)	(3,018		)
	$	29,002		$	24,204

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Stock Compensation - Share-based Compensation and Income Taxes (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Share based compensation expense and related income tax benefits
Compensation Expense	$ 4,080,203	$ 3,703,407	$ 3,175,051
Income tax benefits	$ 1,428,071	$ 1,296,193	$ 1,111,268

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Earnings Per Share (Tables)

12 Months Ended

Feb. 28, 2015

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share:

	Year Ended February 28,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Net income for basic and diluted earnings per common share	$	64,943	$	59,597	$	60,456
Denominator:
Denominator for basic earnings per common share–weighted average shares	25,676		25,514		25,320
Effect of dilutive securities:
Employee and Director stock awards	102		179		241
Denominator for diluted earnings per common share	25,778		25,693		25,561
Earnings per share basic and diluted:
Basic earnings per common share	$	2.53	$	2.34	$	2.39
Diluted earnings per common share	$	2.52	$	2.32	$	2.37

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Stock Compensation - Fair Value Assumptions (Details) (Employee Stock Purchase Plan [Member], Stock Appreciation Rights (SARs) [Member])	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected price volatilty (minimum)	35.39%	36.34%	45.00%
Expected price volatility (maximum)	40.00%	53.00%	47.83%
Risk-free interest rate (minimum)	2.32%	75.00%	59.00%
Risk-free interest rate (maximum)	2.73%	2.98%	89.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	4 years 6 months	4 years 6 months	4 years 6 months
Expected dividend yield	1.20%	1.21%	1.76%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	4 years 6 months	4 years 6 months	4 years 6 months
Expected dividend yield	1.32%	1.49%	1.95%

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Other Accrued Liabilities (Details) (USD $)	Feb. 28, 2015	Feb. 28, 2014
Other Liabilities Disclosure [Abstract]
Accrued interest	$ 2,878,031	$ 3,414,504
Tenant improvements	745,087	983,664
Accrued warranty	2,287,310	1,337,717
Commissions	2,539,642	1,258,983
Personnel expenses	6,033,578	5,578,772
Group medical insurance	1,501,972	1,857,940
Other	2,301,565	2,723,850
Total other accrued liabilities	$ 18,287,185	$ 17,155,430

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Summary of Significant Accounting Policies - Long Term Contingent Consideration (Details) (Nuclear Logistics Incorporated [Member], USD $) In Millions, unless otherwise specified	Feb. 28, 2014	Jun. 02, 2012
Nuclear Logistics Incorporated [Member]
Business Acquisition, Contingent Consideration [Line Items]
Future contingent consideration	$ 9.1	$ 20.0

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Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details)	12 Months Ended
	Feb. 28, 2015
Building and Building Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	10 years
Building and Building Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	25 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	15 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life	15 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Useful life	3 years

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Net Income	$ 64,943	$ 59,597	$ 60,456
Other Comprehensive Income (Loss):
Unrealized Translation Gains (Losses)	(11,760)	(7,775)	(4,439)
Interest Rate Swap, Net of Income Tax of $29, $29 and $29, respectively.	(54)	(54)	(54)
Other Comprehensive Income (Loss)	(11,814)	(7,829)	(4,493)
Comprehensive Income	$ 53,129	$ 51,768	$ 55,963

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Other Accrued Liabilities (Notes)

12 Months Ended

Feb. 28, 2015

Other Liabilities Disclosure [Abstract]

Other accrued liabilities

Other accrued liabilities

Other accrued liabilities consisted of the following:

	2015		2014
	(In thousands)
Accrued interest	$	2,878	$	3,415
Tenant improvements	745		984
Accrued warranty	2,287		1,338
Commissions	2,540		1,259
Personnel expenses	6,034		5,579
Group medical insurance	1,502		1,858
Other	2,301		2,722
	$	18,287	$	17,155

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Current assets:
Cash and cash equivalents	$ 22,527	$ 27,565
Accounts receivable, net of allowance for doubtful accounts of $1,472 and $1,744 in 2015 and 2014, respectively	125,638	116,128
Inventories - net	107,697	107,581
Costs and estimated earnings in excess of billings on uncompleted contracts	33,676	27,222
Deferred income tax assets	4,526	7,801
Prepaid expenses and other	4,570	9,884
Total current assets	298,634	296,181
Property, plant, and equipment, net	196,583	197,639
Goodwill	279,074	278,556
Intangibles and other assets	162,623	180,877
Total Assets	936,914	953,253
Current Liabilities:
Accounts payable	49,580	38,833
Income tax payable	2,888	5,359
Accrued salaries and wages	17,046	17,760
Other accrued liabilities	18,287	17,155
Customer advance payment	28,401	33,733
Profit sharing	6,400	7,310
Billings in excess of costs and estimated earnings on uncompleted contracts	4,674	3,018
Long-term debt due within one year	21,866	20,848
Total Current Liabilities	149,142	144,016
Long-term debt due after one year	315,982	384,768
Deferred income tax liabilities	51,738	39,435
Other Liabilities, Noncurrent	0	9,121
Total liabilities	516,862	577,340
Shareholders' Equity:
Common Stock, $1.00 par value; 100,000 shares authorized; 25,732 shares issued and outstanding at February 28, 2015 and 25,577 at February 28, 2014	25,732	25,577
Capital in excess of par value	27,706	21,954
Retained earnings	389,446	339,400
Accumulated other comprehensive income (loss)	(22,832)	(11,018)
Total Shareholders’ Equity	420,052	375,913
Total Liabilities and Shareholders’ Equity	$ 936,914	$ 953,253

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Income Taxes - Provision of Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Income (loss) before income taxes:
Domestic	$ 76,434	$ 83,495	$ 92,334
Foreign	13,696	10,416	2,035
Income before income taxes	90,130	93,911	94,369
Current provision:
Federal	3,770	28,901	26,330
Foreign	3,025	1,903	(2,600)
State and Local	2,575	4,382	4,136
Total current provision for income taxes	9,370	35,186	27,866
Deferred provision (benefit):
Federal	15,455	(2,143)	2,024
Foreign	(858)	1,230	3,455
State and Local	1,220	41	568
Deferred Income Tax Expense (Benefit)	15,817	(872)	6,047
Total provision for income taxes	$ 25,187	$ 34,314	$ 33,913

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Income Statement [Abstract]
Net Sales	$ 816,687	$ 751,723	$ 570,594
Costs and Expenses
Cost of Sales	610,991	546,018	406,421
Gross profit	205,696	205,705	164,173
Selling, General and Administrative	98,871	105,591	66,189
Operating Income (Loss)	106,825	100,114	97,984
Interest Expense	16,561	18,407	13,073
Other Expense (Income) - net	2,659	(4,165)	(1,155)
Gain (Loss) on Disposition of Property Plant Equipment	2,525	8,039	8,303
Income before income taxes	90,130	93,911	94,369
Income Tax Expense	25,187	34,314	33,913
Net Income	$ 64,943	$ 59,597	$ 60,456
Earnings Per Common Share
Basic Earnings Per Share (usd per share)	$ 2.53	$ 2.34	$ 2.39
Diluted Earnings Per Share (usd per share)	$ 2.52	$ 2.32	$ 2.37
Weighted average number common shares (shares)	25,675,645	25,514,387	25,320,147
Weighted average number common shares and potentially dilutive common shares (shares)	25,777,945	25,693,468	25,560,594

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 62,794	$ 64,817
Work-in-process	42,001	39,781
Finished goods	2,902	2,983
Total Inventory	$ 107,697	$ 107,581

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Commitments and Contingencies - Schedule Of Future Operating Lease Expenses (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
2015	$ 6,955
2016	6,415
2017	4,561
2018	3,257
2019	1,204
Thereafter	2,758
Total	$ 25,150

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Long-term Debt - Schedule of Long-term Debt Maturities (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Debt Disclosure [Abstract]
2015	$ 21,866
2016	23,192
2017	16,629
2018	151,161
2019	0
Thereafter	125,000
Total	$ 337,848	$ 405,616

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 28, 2015

Accounting Policies [Abstract]

Property, Plant and Equipment

Following is a summary of property, plant and equipment:

	2015			2014
	(In thousands)
Land	$	16,004		$	15,116
Building and structures	122,539			117,765
Machinery and equipment	184,921			175,955
Furniture, fixtures, software and computers	21,716			20,497
Automotive equipment	2,351			2,429
Construction in progress	12,193			8,277
	359,724			340,039
Less accumulated depreciation	(163,141		)	(142,400		)
Net property, plant, and equipment	$	196,583		$	197,639

Schedule of Warranty Reserve

The following is a roll-forward of amounts accrued for warranties (in thousands):

Balance at February 29, 2012	$	1,670
Warranty costs incurred	(2,026		)
Additions charged to income	2,429
Balance at February 28, 2013	$	2,073
Warranty costs incurred	(2,246		)
Additions charged to income	1,511
Balance at February 28, 2014	$	1,338
Warranty costs incurred	(1,294		)
Additions charged to income	2,243
Balance at February 28, 2015	$	2,287

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Commitments and Contingencies (Notes)

12 Months Ended

Feb. 28, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Leases

The Company is obligated under various operating leases for property, plant and equipment. As February 28, 2015, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year are summarized in the below table:

Fiscal Year:	(In thousands)
2016	$	6,955
2017	6,415
2018	4,561
2019	3,257
2020	1,204
Thereafter	2,758
Total	$	25,150

Rent expense was $14.1 million, $11.0 million and $7.8 million for fiscal years 2015, 2014 and 2013, respectively. Rent expense includes various equipment rentals that do not meet the terms of a non-cancelable lease or that have initial terms of less than one year.

Commodity pricing

We have no contracted commitments for any commodities including steel, aluminum, natural gas, cooper, zinc, nickel based alloys, except for those entered into under the normal course of business.

Other

At February 28, 2015, the Company had outstanding letters of credit in the amount of $13.0 million. These letters of credit were issued to customers served by our Energy Segment to cover insurance reserves and any potential warranty costs and performance issues and bid bonds. In addition, as of February 28, 2015, a warranty reserve in the amount of $2.3 million was established to offset any future warranty claims.

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Summary of Significant Accounting Policies (Details) (USD $)	12 Months Ended
	Feb. 28, 2015 operating_segment	Feb. 28, 2014	Feb. 28, 2013	Jun. 02, 2012
Business Acquisition [Line Items]
Number of operating segments	2
Allowance for doubtful accounts, net	$ 700,000	$ 300,000	$ 300,000
Nuclear Logistics Incorporated [Member]
Business Acquisition [Line Items]
Future contingent consideration		$ 9,100,000		$ 20,000,000

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Operating segments (Details) (USD $)	3 Months Ended								12 Months Ended
	Feb. 28, 2015	Nov. 30, 2014	Aug. 31, 2014	May 31, 2014	Feb. 28, 2014	Nov. 30, 2013	Aug. 31, 2013	May 31, 2013	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Operations and assets by segment
Net sales	$ 182,312,000	$ 224,833,000	$ 193,416,000	$ 216,126,000	$ 181,011,000	$ 197,755,000	$ 189,782,000	$ 183,175,000	$ 816,687,000	$ 751,723,000	$ 570,594,000
Segment Operating income									106,825,000	100,114,000	97,984,000
Gain (Loss) on Disposition of Property Plant Equipment									(2,525,000)	(8,039,000)	(8,303,000)
Other Nonoperating Income (Expense)									(2,659,000)	4,165,000	1,155,000
Interest expense									16,561,000	18,407,000	13,073,000
Total Operating Income									90,130,000	93,911,000	94,369,000
Depreciation and amortization									46,089,000	43,305,000	29,363,000
Expenditures for acquisitions, net of cash, and property, plant and equipment									40,895,000	319,174,000	161,981,000
Assets	936,914,000				953,253,000				936,914,000	953,253,000	694,205,000
Goodwill	279,074,000				278,556,000				279,074,000	278,556,000	171,886,000
Property, Plant and Equipment, Net	196,583,000				197,639,000				196,583,000	197,639,000	154,476,000
Galvanizing Services [Member]
Operations and assets by segment
Net sales									358,348,000	335,617,000	337,039,000
Segment Operating income									88,562,000	87,808,000	88,505,000
Depreciation and amortization									23,964,000	22,008,000	19,501,000
Expenditures for acquisitions, net of cash, and property, plant and equipment									26,928,000	33,282,000	81,604,000
Assets	378,823,000				378,358,000				378,823,000	378,358,000	370,142,000
Goodwill	95,538,000				94,731,000				95,538,000	94,731,000	96,735,000
Corporate, Non-Segment [Member]
Operations and assets by segment
Segment Operating income									(20,440,000)	(32,207,000)	(22,594,000)
Corporate [Member]
Operations and assets by segment
Depreciation and amortization									1,400,000	1,338,000	1,275,000
Expenditures for acquisitions, net of cash, and property, plant and equipment									3,320,000	1,378,000	864,000
Assets	34,844,000				32,086,000				34,844,000	32,086,000	62,989,000
Energy [Member]
Operations and assets by segment
Net sales									458,339,000	416,106,000	233,555,000
Segment Operating income									38,703,000	44,513,000	32,073,000
Depreciation and amortization									20,725,000	19,959,000	8,587,000
Expenditures for acquisitions, net of cash, and property, plant and equipment									10,647,000	284,514,000	79,513,000
Assets	523,247,000				542,809,000				523,247,000	542,809,000	261,074,000
Goodwill	183,536,000				183,825,000				183,536,000	183,825,000	75,151,000
UNITED STATES
Operations and assets by segment
Net sales									631,544,000	601,674,000	503,699,000
Property, Plant and Equipment, Net	173,712,000				171,727,000				173,712,000	171,727,000	127,410,000
International [Member]
Operations and assets by segment
Net sales									189,855,000	150,049,000	66,895,000
Geography Eliminations [Member]
Operations and assets by segment
Net sales									(4,712,000)	0	0
CANADA
Operations and assets by segment
Property, Plant and Equipment, Net	20,289,000				23,779,000				20,289,000	23,779,000	27,066,000
Other Countries [Member]
Operations and assets by segment
Property, Plant and Equipment, Net	$ 2,582,000				$ 2,133,000				$ 2,582,000	$ 2,133,000	$ 0

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- Costs Net of Billings By Balance Sheet Location (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Contractors [Abstract]
Cost and estimated earnings in excess of billings on uncompleted contracts	$ 33,676	$ 27,222
Billings in excess of costs and estimated earnings on uncompleted contracts	(4,674)	(3,018)
Total costs net of billings	$ 29,002	$ 24,204

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Goodwill and Intangible Assets - Schedule of Future Amortization (Details) (USD $) In Thousands, unless otherwise specified	Feb. 28, 2015	Feb. 28, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 15,666
2016	15,402
2017	14,812
2018	14,136
2019	13,666
Thereafter	80,175
Finite-Lived Intangible Assets, Net	$ 153,857	$ 170,432

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Long-term Debt (Tables)

12 Months Ended

Feb. 28, 2014

Debt Disclosure [Abstract]

Schedule of Debt

Debt consisted of the following:	2015			2014
	(In thousands)
Senior Notes, due in balloon payment in January 2021	$	125,000		$	125,000
Senior Notes, due in annual installments of $14,286 beginning in March 2012 through March 2018	$	57,143		$	71,428
Term Note, due in quarterly installments beginning in June 2013 through March 2018	$	65,625		$	72,188
Revolving line of credit with bank	$	90,080		$	137,000
Total debt	$	337,848		$	405,616
Less amount due within one year	$	(21,866	)	$	(20,848	)
Total long-term debt	$	315,982		$	384,768

Schedule of Maturities of Long-term Debt

Maturities of debt are as follows:

Fiscal Year	(In thousands)
2016	$	21,866
2017	23,192
2018	16,629
2019	151,161
2020	—
Thereafter	125,000
Total	$	337,848

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Income Taxes (Tables)

12 Months Ended

Feb. 28, 2015

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred income tax liability are as follows:

	2015			2014
	(In thousands)
Deferred income tax assets:
Employee related items	$	4,690		$	4,314
Inventories	1,080			839
Accrued warranty	893			504
Accounts receivable	565			2,342
Net operating loss carry forward	1,919			4,268
Other	—			606
	9,147			12,873
Less: valuation allowance	(1,588		)	(3,793		)
Total deferred income tax assets	7,559			9,080
Deferred income tax liabilities:
Depreciation methods and property basis differences	(28,611		)	(19,995		)
Other assets and tax-deductible goodwill	(26,161		)	(20,719		)
Total deferred income tax liabilities	(54,772		)	(40,714		)
Net deferred income tax liabilities	$	(47,213	)	$	(31,634	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes consists of:

		2015			2014			2013
Income before income taxes:
Domestic		$	76,434		$	83,495		$	92,334
Foreign		13,696			10,416			2,035
Income before income taxes		$	90,130		$	93,911		$	94,369
Current provision:
	Federal	$	3,770		$	28,901		$	26,330
	Foreign	3,025			1,903			(2,600		)
	State and Local	2,575			4,382			4,136
Total current provision for income taxes		$	9,370		$	35,186		$	27,866
Deferred provision (benefit):
	Federal	$	15,455		$	(2,143	)	$	2,024
	Foreign	(858		)	1,230			3,455
	State and Local	1,220			41			568
Total deferred provision for income taxes		$	15,817		$	(872	)	$	6,047
Total provision for income taxes		$	25,187		$	34,314		$	33,913

Summary of Operating Loss Carryforwards

The following table summarizes the Net Operating Loss Carry forward:

	2015		2014
	(In thousands)
Federal	$	—	$	1,089
State	$	1,919	$	1,919
Foreign	$	—	$	1,260

Schedule of Effective Income Tax Rate Reconciliation

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

	2015		2014		2013
Statutory federal income tax rate	35.0	%	35.0	%	35.0	%
Permanent differences	0.6		1.3		0.2
State income taxes, net of federal income tax benefit	2.7		3.0		3.1
Benefit of Section 199 of the Code, manufacturing deduction	(2.4	)	(2.2	)	(2.6	)
Valuation allowance	(3.4	)	—		—
Tax credits	(3.4	)	—		—
Foreign tax rate differential	(0.7	)	(0.6	)	0.2
Other	(0.5	)	—		—
Effective income tax rate	27.9	%	36.5	%	35.9	%

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Feb. 28, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in goodwill by segment during the year are as follows:

Segment	March 1, 2014		Acquisitions		Foreign Exchange Translation			February 28, 2015
	(In thousands)
Galvanizing Services	$	94,731	$	3,306	$	(2,499	)	$	95,538
Energy	183,825		807		(1,096		)	183,536
Total	$	278,556	$	4,113	$	(3,595	)	$	279,074

Segment	March 1, 2013		Acquisitions		Foreign Exchange Translation			February 28, 2014
	(In thousands)
Galvanizing Services	$	96,735	$	—	$	(2,004	)	$	94,731
Energy	75,151		109,636		(962		)	183,825
Total	$	171,886	$	109,636	$	(2,966	)	$	278,556

Schedule of Finite-Lived Intangible Assets by Major Class

Amortizable intangible assets consisted of the following as of February 28:

	2015			2014
	(In thousands)
Amortizable intangible assets
Customer related intangibles	$	159,235		$	158,913
Non-compete agreements	5,715			5,037
Trademarks	5,042			5,110
Technology	7,400			7,400
Certifications	209			232
Engineering drawings	24,600			24,600
Backlog	8,355			8,440
	210,556			209,732
Less accumulated amortization	(56,699		)	(39,300		)
	$	153,857		$	170,432

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following table projects the estimated amortization expense for the five succeeding fiscal years and thereafter.

	(In thousands)
2016	$	15,666
2017	15,402
2018	14,812
2019	14,136
2020	13,666
Thereafter	80,175
Total	$	153,857

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Costs and Estimated Earnings On Uncompleted Contracts (Notes)

12 Months Ended

Feb. 28, 2015

Contractors [Abstract]

Costs and estimated earnings on uncompleted contracts

Costs and estimated earnings on uncompleted contracts

Costs and estimated earnings on uncompleted contracts consisted of the following:

	2015		2014
	(In thousands)
Costs incurred on uncompleted contracts	$	126,882	$	158,224
Estimated earnings	50,487		65,063
	177,369		223,287
Less billings to date	148,367		199,083
	$	29,002	$	24,204

The amounts noted above are included in the accompanying consolidated balance sheets under the following captions:

	2015			2014
	(In thousands)
Cost and estimated earnings in excess of billings on uncompleted contracts	$	33,676		$	27,222
Billings in excess of costs and estimated earnings on uncompleted contracts	(4,674		)	(3,018		)
	$	29,002		$	24,204

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Goodwill and Intangible Assets - Schedule of Goodwill (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 278,556,000	$ 171,886,000
Acquisitions	4,113,000	109,636,000
Foreign Exchange Translation	(3,595,000)	(2,966,000)
Goodwill, ending balance	279,074,000	278,556,000
Galvanizing Services [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	94,731,000	96,735,000
Acquisitions	3,306,000	0
Foreign Exchange Translation	(2,499,000)	(2,004,000)
Goodwill, ending balance	95,538,000	94,731,000
Energy [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	183,825,000	75,151,000
Acquisitions	807,000	109,636,000
Foreign Exchange Translation	(1,096,000)	(962,000)
Goodwill, ending balance	$ 183,536,000	$ 183,825,000

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Inventories (Tables)

12 Months Ended

Feb. 28, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories (net) consisted of the following:

	As of February 28,
	2015		2014
	(In thousands)
Raw materials	$	62,794	$	64,817
Work-in-process	42,001		39,781
Finished goods	2,902		2,983
	$	107,697	$	107,581

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Quarterly Financial Information, Unaudited (Tables)

12 Months Ended

Feb. 28, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

	Quarter ended
	May 31, 2014		August 31, 2014		November 30, 2014		February 28, 2015
	(in thousands, except per share data)
Net sales	$	216,126	$	193,416	$	224,833	$	182,312
Gross profit	55,389		42,100		60,775		47,432
Net income	14,925		13,769		19,965		16,283
Basic earnings per share	0.58		0.54		0.78		0.63
Diluted earnings per share	0.58		0.53		0.77		0.63

	Quarter ended
	May 31, 2013		August 31, 2013		November 30, 2013		February 28, 2014
	(in thousands, except per share data)
Net sales	$	183,175	$	189,782	$	197,755	$	181,011
Gross profit	50,715		55,905		53,361		45,724
Net income	14,547		16,363		18,445		10,242
Basic earnings per share	0.57		0.64		0.72		0.40
Diluted earnings per share	0.57		0.64		0.72		0.40

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Employee Benefit Plans (Notes)

12 Months Ended

Feb. 28, 2015

Postemployment Benefits [Abstract]

Employee benefit plans

Employee benefit plans

The Company has a trusted profit sharing plan and 401(k) plan covering substantially all of its employees. Under the provisions of the plan, the Company contributes amounts as authorized by the Board of Directors. Total contributions to the profit sharing plan, which included the Company’s 401(k) matching, were $10.0 million, $10.4 million, and $10.5 million for fiscal 2015, 2014, and 2013, respectively.

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Long-term Debt - Narrative (Details) (USD $)	12 Months Ended	0 Months Ended	12 Months Ended
	Feb. 28, 2014	Mar. 27, 2013	Feb. 28, 2015	Mar. 31, 2008	Jan. 21, 2011	Feb. 28, 2013
Senior Notes [Member] | Unsecured Senior Notes Due March 2012 through March 2018 [Member]
Debt Instrument [Line Items]
Covenant, net worth minimum	$ 116,900,000
Covenant, minimum retention of future income	50.00%
Covenant, minimum fixed charge coverage ratio	2.0
Debt instrument, face amount				100,000,000
Debt instrument, stated percentage				6.24%
Covenant, minimum ratio of indebtedness to EBIDTA	3.25
Covenant, maximum percentage of priority indebtedness	10.00%
Senior Notes [Member] | Unsecured Senior Notes Due January 2021 [Member]
Debt Instrument [Line Items]
Covenant, net worth minimum	116,900,000
Covenant, minimum retention of future income	50.00%
Covenant, minimum fixed charge coverage ratio	2.0
Debt instrument, face amount					125,000,000
Debt instrument, stated percentage					5.42%
Covenant, minimum ratio of indebtedness to EBIDTA	3.25
Covenant, maximum percentage of priority indebtedness	10.00%
Revolving Credit Facility [Member] | Bank of America [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Covenant, net worth minimum		230,000,000
Covenant, minimum retention of future income		50.00%
Covenant, maximum leverage ratio		3.25
Covenant, minimum fixed charge coverage ratio		1.75
Covenant, maximum capital expenditures		60,000,000
Capital expenditure covenant		50,000,000
Amount outstanding on line of credit	90,080,000					0
Letters of credit outstanding	13,000,000
Remaining borrowing capacity on line of credit	122,000,000
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		225,000,000
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | Maximum [Member]
Debt Instrument [Line Items]
Variable rate description		Eurodollar
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | Eurodollar [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread			1.00%
Commitment fees		0.20%
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | Eurodollar [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread			2.00%
Commitment fees		0.30%
Line of Credit [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		75,000,000
Accordion feature		$ 75,000,000

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Property, Plant and Equipment (Notes)

12 Months Ended

Feb. 28, 2015

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment Disclosure [Text Block]

Property, Plant, and Equipment

Following is a summary of property, plant and equipment:

	2015			2014
	(In thousands)
Land	$	16,004		$	15,116
Building and structures	122,539			117,765
Machinery and equipment	184,921			175,955
Furniture, fixtures, software and computers	21,716			20,497
Automotive equipment	2,351			2,429
Construction in progress	12,193			8,277
	359,724			340,039
Less accumulated depreciation	(163,141		)	(142,400		)
Net property, plant, and equipment	$	196,583		$	197,639

Depreciation expense was $28.1 million, $25.1 million, and $19.4 million for fiscal 2015, 2014, and 2013, respectively.

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Cash Flows From Operating Activities:
Net Income	$ 64,943,000	$ 59,597,000	$ 60,456,000
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities:
Depreciation	28,100,000	25,100,000	19,400,000
Depreciation, Amortization and Accretion, Net	46,089,000	43,305,000	29,363,000
Deferred income tax expense	15,818,000	842,000	3,366,000
Share-based compensation expense	4,080,000	3,703,000	3,175,000
Amortization of deferred borrowing costs	1,431,000	1,421,000	287,000
Provision for doubtful accounts	458,000	(116,000)	446,000
Gain (Loss) on Disposition of Assets	2,651,000	0	0
Net (gain) loss on insurance settlement or sale of property, plant and equipment	(2,525,000)	(8,039,000)	(8,303,000)
Effects of changes in operating assets and liabilities, net of acquisitions:
Accounts Receivable	(9,382,000)	35,955,000	(11,599,000)
Inventories	(879,000)	(6,209,000)	(4,454,000)
Prepaid expenses and other assets	5,543,000	(6,590,000)	(2,244,000)
Net change in billings related to costs and estimated earnings on uncompleted contracts	(5,635,000)	(9,732,000)	1,942,000
Accounts payable	11,025,000	(4,150,000)	958,000
Other accrued liabilities and income taxes payable	(15,460,000)	(2,712,000)	19,345,000
Net cash provided by operating activities:	118,157,000	107,275,000	92,738,000
Cash flows from investing activities:
Proceeds from the sale or insurance settlement of property, plant, and equipment	1,330,000	8,205,000	11,839,000
Acquisition of subsidiaries, net of cash acquired	(11,518,000)	(275,702,000)	(137,058,000)
Purchases of property, plant and equipment	(29,377,000)	(43,472,000)	(24,923,000)
Net cash used in investing activities:	(39,565,000)	(310,969,000)	(150,142,000)
Cash flows from financing activities:
Tax benefits from stock options exercised	259,000	1,602,000	1,283,000
Proceeds from exercise of stock options and stock appreciation rights	0	0	16,000
Payments on revolving loan	(57,905,000)	(60,000,000)	0
Proceeds from Lines of Credit	10,977,000	197,000,000	0
Proceeds from Issuance of Long-term Debt	0	75,000,000	0
Proceeds from long-term debt	(20,848,000)	(17,098,000)	(18,136,000)
Cash dividends paid	(14,897,000)	(14,290,000)	(13,423,000)
Net cash provided by (used in) financing activities	(82,414,000)	176,333,000	(30,360,000)
Effect of exchange rate changes on cash	(1,216,000)	(672,000)	59,000
Net increase (decrease) in cash and cash equivalents	(5,038,000)	(28,033,000)	(87,705,000)
Cash and cash equivalents at beginning of year	27,565,000	55,598,000	143,303,000
Cash and cash equivalents at end of year	22,527,000	27,565,000	55,598,000
Cash paid during the year for:
Interest	15,613,000	16,500,000	13,108,000
Income taxes	15,264,000	26,332,000	30,967,000
Payments of Debt Issuance Costs	$ 0	$ (5,881,000)	$ (100,000)

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Property, Plant and Equipment (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Property, Plant and Equipment [Line Items]
Depreciation	$ 28,100,000	$ 25,100,000	$ 19,400,000
Property, Plant and Equipment, Gross	359,724,000	340,039,000
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(163,141,000)	(142,400,000)
Property, plant, and equipment, net	196,583,000	197,639,000	154,476,000
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	16,004,000	15,116,000
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	122,539,000	117,765,000
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	184,921,000	175,955,000
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	21,716,000	20,497,000
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,351,000	2,429,000
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 12,193,000	$ 8,277,000

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Summary of Significant Accounting Policies - Product Warranty Roll-forward (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning balance	$ 1,338	$ 2,073	$ 1,670
Warranty costs incurred	(1,294)	(2,246)	(2,026)
Additions charged to income	2,243	1,511	2,429
Balance, ending balance	$ 2,287	$ 1,338	$ 2,073

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Acquisitions - Pro Forma Information (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Feb. 28, 2014	Feb. 28, 2013
Nuclear Logistics Incorporated [Member]
Summary of acquisitions
Net Sales		$ 583,743
Net Income		60,602
Earnings Per Common Share
Basic Earnings Per Share (usd per share)		$ 2.39
Diluted Earnings Per Share (usd per share)		$ 2.37
Aquilex [Member]
Summary of acquisitions
Net Sales	774,818	783,126
Net Income	$ 60,080	$ 58,372
Earnings Per Common Share
Basic Earnings Per Share (usd per share)	$ 2.35	$ 2.31
Diluted Earnings Per Share (usd per share)	$ 2.34	$ 2.28

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Other Accrued Liabilities (Tables)

12 Months Ended

Feb. 28, 2015

Other Liabilities Disclosure [Abstract]

Schedule of Accrued Liabilities

Other accrued liabilities consisted of the following:

	2015		2014
	(In thousands)
Accrued interest	$	2,878	$	3,415
Tenant improvements	745		984
Accrued warranty	2,287		1,338
Commissions	2,540		1,259
Personnel expenses	6,034		5,579
Group medical insurance	1,502		1,858
Other	2,301		2,722
	$	18,287	$	17,155

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Quarterly Financial Information, Unaudited (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 28, 2015	Nov. 30, 2014	Aug. 31, 2014	May 31, 2014	Feb. 28, 2014	Nov. 30, 2013	Aug. 31, 2013	May 31, 2013	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 182,312	$ 224,833	$ 193,416	$ 216,126	$ 181,011	$ 197,755	$ 189,782	$ 183,175	$ 816,687	$ 751,723	$ 570,594
Gross profit	47,432	60,775	42,100	55,389	45,724	53,361	55,905	50,715	205,696	205,705	164,173
Net income	$ 16,283	$ 19,965	$ 13,769	$ 14,925	$ 10,242	$ 18,445	$ 16,363	$ 14,547	$ 64,943	$ 59,597	$ 60,456
Basic earnings per common share (usd per share)	$ 0.63	$ 0.78	$ 0.54	$ 0.58	$ 0.40	$ 0.72	$ 0.64	$ 0.57	$ 2.53	$ 2.34	$ 2.39
Diluted earnings per common share (usd per share)	$ 0.63	$ 0.77	$ 0.53	$ 0.58	$ 0.40	$ 0.72	$ 0.64	$ 0.57	$ 2.52	$ 2.32	$ 2.37

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Feb. 28, 2015	Nov. 30, 2014	Aug. 31, 2014	May 31, 2014	Feb. 28, 2014	Nov. 30, 2013	Aug. 31, 2013	May 31, 2013	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio										2
Numerator:
Net income	$ 16,283	$ 19,965	$ 13,769	$ 14,925	$ 10,242	$ 18,445	$ 16,363	$ 14,547	$ 64,943	$ 59,597	$ 60,456
Denominator:
Denominator for basic earnings per common share-weighted average shares (shares)									25,675,645	25,514,387	25,320,147
Effect of dilutive securities:
Employee and Director stock awards (shares)									102,300	179,081	240,447
Denominator for diluted earnings per common share (shares)									25,777,945	25,693,468	25,560,594
Earnings per share basic and diluted:
Basic earnings per common share (usd per share)	$ 0.63	$ 0.78	$ 0.54	$ 0.58	$ 0.40	$ 0.72	$ 0.64	$ 0.57	$ 2.53	$ 2.34	$ 2.39
Diluted earnings per common share (usd per share)	$ 0.63	$ 0.77	$ 0.53	$ 0.58	$ 0.40	$ 0.72	$ 0.64	$ 0.57	$ 2.52	$ 2.32	$ 2.37
Stock Appreciation Rights (SARs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount									80,683	113,887	0

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Income Taxes - Reconcilliation of Effective Income Tax Rate (Details)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	35.00%	35.00%	35.00%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Meals and Entertainment, Percent	0.60%	1.30%	0.20%
State income taxes, net of federal income tax benefit	2.70%	3.00%	3.10%
Benefit of Section 199 of the Code, manufacturing deduction	2.40%	2.20%	2.60%
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	(3.40%)	0.00%	0.00%
Other	(0.50%)	0.00%	0.00%
Effective income tax rate	27.90%	36.50%	35.90%
Effective Income Tax Rate Reconciliation, Tax Credit, Percent	(3.40%)	0.00%	0.00%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	(0.70%)	(0.60%)	0.20%

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Acquisitions - Purchase Price Allocation (Details) (USD $)	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013	Jun. 02, 2012
Purchase Price Allocation
Goodwill	$ 279,074,000	$ 278,556,000	$ 171,886,000
Aquilex [Member]
Purchase Price Allocation
Current Assets				78,619,000
Property and Equipment				27,669,000
Intangible Assets				87,100,000
Goodwill				109,636,000
Other Assets				205,000
Total Assets Acquired				303,229,000
Current Liabilities				(27,527,000)
Net Assets Acquired				275,702,000
Nuclear Logistics Incorporated [Member]
Purchase Price Allocation
Current Assets				22,901,000
Property and Equipment				1,416,000
Intangible Assets				50,600,000
Goodwill				32,323,000
Other Assets				58,000
Total Assets Acquired				107,298,000
Current Liabilities				(17,866,000)
Long Term Liabilities				(12,388,000)
Net Assets Acquired				$ 77,044,000

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Earnings Per Share (Notes)

12 Months Ended

Feb. 28, 2015

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

Basic earnings per share is based on the weighted average number of shares outstanding during each year. Diluted earnings per share were similarly computed but have been adjusted for the dilutive effect of the weighted average number of stock options, stock appreciation rights and restricted stock units outstanding. The shares and earnings per share were adjusted to reflect our two for one stock split effected in the form of a share dividend approved by the Board of Directors on June 28, 2012, and paid on July 30, 2012. All share data has been retroactively restated.

The following table sets forth the computation of basic and diluted earnings per share:

	Year Ended February 28,
	2015		2014		2013
	(In thousands, except per share data)
Numerator:
Net income for basic and diluted earnings per common share	$	64,943	$	59,597	$	60,456
Denominator:
Denominator for basic earnings per common share–weighted average shares	25,676		25,514		25,320
Effect of dilutive securities:
Employee and Director stock awards	102		179		241
Denominator for diluted earnings per common share	25,778		25,693		25,561
Earnings per share basic and diluted:
Basic earnings per common share	$	2.53	$	2.34	$	2.39
Diluted earnings per common share	$	2.52	$	2.32	$	2.37

Stock appreciation rights of approximately 80,683 and 113,887 were excluded from the computation of diluted earnings per share for fiscal 2015 and 2014, respectively, as the effect would be anti-dilutive. There were zero stock options or stock appreciation rights outstanding with exercise prices greater than the average market price of common shares for fiscal 2013.

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Realignment Costs (Notes)

12 Months Ended

Feb. 28, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Realignment Costs

As part of AZZ's ongoing efforts to optimize cost and effectiveness, during the second quarter of fiscal 2015, the Company underwent a review of its current management structure with respect to its segment and corporate operations and recorded realignment costs related to severance associated with changes needed to improve management efficiency and accountability. We also reserved for the disposition and write off of certain fixed assets in connection with the realignment. The total cost related to the realignment is estimated to be $4.0 million. One-time severance costs total $1.3 million and is included in Selling, General and Administrative Expense. The loss recognized from the disposition of certain fixed assets total $2.7 million and is included in Costs of Sales. The following table shows changes in the realignment accrual:

	Realignment Accrual
	(in thousands)
Realignment costs accrued	$	3,952
Realignment costs utilized	(3,496		)
Balance at February 28, 2015	$	456

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Stock Compensation - SARs and Option Awards Activity (Details) (Stock Appreciation Rights SARS and Stock Option [Member], USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Stock Appreciation Rights SARS and Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments, Number of Shares [Roll Forward]
Outstanding at beginning of year (shares)	396,174	439,863	573,000
Granted (shares)	126,532	116,032	118,107
Exercised (shares)	(98,942)	(159,721)	(251,240)
Forfeited (shares)	(46,782)	0	(4)
Outstanding at end of year (shares)	376,982	396,174	439,863
Exercisable at end of year (shares)	204,107	153,343	115,395
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding at beginning of year, Weighted Average Exercise Price (usd per share)	$ 26.64	$ 19.12	$ 15.46
Granted, Weighted Average Exercise Price (usd per share)	$ 43.92	$ 45.20	$ 25.77
Exercised, Weighted Average Exercise Price (usd per share)	$ 22.79	$ 19.19	$ 13.84
Forfeited, Weighted Average Exercise Price (usd per share)	$ 44.14	$ 0.00	$ 2.11
Outstanding at end of year, Weighted Average Exercise Price (usd per share)	$ 31.27	$ 26.64	$ 19.12
Exercisable at end of year, Weighted Average Exercise Price (usd per share)	$ 21.55	$ 15.32	$ 13.14
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year (usd per share)	$ 16.94	$ 13.68	$ 8.81

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Operating segments (Notes)

12 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Operating segments

Operating segments

Information regarding operations and assets by segment was as follows:

	2015			2014			2013
Net sales:	(In thousands)
Energy	$	458,339		$	416,106		$	233,555
Galvanizing Services	358,348			335,617			337,039
	$	816,687		$	751,723		$	570,594
Operating income:
Energy	$	38,703		$	44,513		$	32,073
Galvanizing Services	88,562			87,808			88,505
Corporate	(20,440		)	(32,207		)	(22,594		)
Total Operating Income	106,825			100,114			97,984
Interest expense	16,561			18,407			13,073
Net gain on sale of property, plant and equipment and insurance proceeds	(2,525		)	(8,039		)	(8,303		)
Other (income) expense, net	2,659			(4,165		)	(1,155		)
Income before income taxes	$	90,130		$	93,911		$	94,369
Depreciation and amortization:
Energy	$	20,725		$	19,959		$	8,587
Galvanizing Services	23,964			22,008			19,501
Corporate	1,400			1,338			1,275
	$	46,089		$	43,305		$	29,363
Expenditures for acquisitions, net of cash, and property, plant and equipment:
Energy	$	10,647		$	284,514		$	79,513
Galvanizing Services	26,928			33,282			81,604
Corporate	3,320			1,378			864
	$	40,895		$	319,174		$	161,981
Total assets:
Energy	$	523,247		$	542,809		$	261,074
Galvanizing Services	378,823			378,358			370,142
Corporate	34,844			32,086			62,989
	$	936,914		$	953,253		$	694,205
Geographic net sales:
United States	$	631,544		$	601,674		$	503,699
Other countries	189,855			150,049			66,895
Eliminations	(4,712		)	—			—
	$	816,687		$	751,723		$	570,594
Property, plant and equipment, net:
United States	$	173,712		$	171,727		$	127,410
Canada	20,289			23,779			27,066
Other Countries	2,582			2,133			—
	$	196,583		$	197,639		$	154,476

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Stock Compensation (Notes)

12 Months Ended

Feb. 28, 2015

Share-based Compensation [Abstract]

Stock compensation

Share-based compensation

The Company has one share-based compensation plan, the 2014 Long Term Incentive Plan (the “Plan”). The purpose of the Plan is to promote the growth and prosperity of the Company by permitting the Company to grant to its employees, directors and advisors various types of restricted stock unit awards, stock appreciation rights and options to purchase common stock of the Company. The maximum number of shares that may be issued under the Plan is 1,500,000 shares. As of February 28, 2015, the Company had approximately 1,473,148 shares reserved for future issuance under the Plan.

Restricted Stock Unit Awards

Restricted stock unit awards are valued at the market price of our common stock on the grant date. These awards generally have a three year cliff vesting schedule but may vest early in accordance with the Plan’s accelerated vesting provisions.

Activity in our non-vested restricted stock unit awards for the year ended February 28, 2015 was as follows:

	Restricted Stock Units		Weighted Average Grant Date Fair Value
Non-Vested Balance as of February 28, 2014	70,352		$	34.95
Granted	48,616		42.89
Vested	(28,647	)	28.57
Forfeited	(12,875	)	40.87
Non-Vested Balance as of February 28, 2015	77,446		$	41.31

The total fair value of restricted stock units vested during fiscal years 2015, 2014, and 2013 was $0.8 million, $1.9 million and $0.5 million, respectively. For fiscal years ended 2015, 2014 and 2013, there were 77,446, 70,352 and 109,430, respectively, of non vested restricted stock units outstanding with weighted average grant date fair values of $41.31, $34.95 and $20.73, respectively.

Stock Appreciation Rights and Option Awards

Stock appreciation rights and option awards are granted with an exercise price equal to the market value of our common stock on the date of grant. These awards generally have a contractual term of 7 years and vest ratably over a period of 3 years although some may vest immediately on issuance. These awards are valued using the Black-Scholes option pricing model.

A summary of the Company’s stock appreciation rights and option awards activity for the three years ended February 28, were as follows:

	2015				2014				2013
	Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price		Options/ SAR’s		Weighted Average Exercise Price
Outstanding at beginning of year	396,174		$	26.64	439,863		$	19.12	573,000		$	15.46
Granted	126,532		43.92		116,032		45.20		118,107		25.77
Exercised	(98,942	)	22.79		(159,721	)	19.19		(251,240	)	13.84
Forfeited	(46,782	)	44.14		—		—		(4	)	2.11
Outstanding at end of year	376,982		$	31.27	396,174		$	26.64	439,863		$	19.12
Exercisable at end of year	204,107		$	21.55	153,343		$	15.32	115,395		$	13.14
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year			$	16.94			$	13.68			$	8.81

The average remaining contractual term for those options and stock appreciation rights outstanding as of February 28, 2015 was 4.13 years, with an aggregate intrinsic value of $17.1 million. The average remaining contractual terms for those options and stock appreciation rights that are exercisable as of February 28, 2014 was 2.82 years, with an aggregate intrinsic value of $9.3 million. As of February 28, 2015, the intrinsic value of options/stock appreciation rights exercised was $4.5 million.

The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2015.

Range of Exercise Prices	Total Options/ SAR’s	Average Remaining Life	Weighted Average Exercise Price		Options / SAR’s Currently   Exercisable	Weighted Average Exercise Price
$9.06	48,510	1.00	$	9.06	48,510	$	9.06
$15.84	54,546	2.00	$	15.84	54,546	$	15.84
$20.91	40,950	3.00	$	20.91	40,950	$	20.91
$25.67	38,932	4.00	$	25.67	24,082	$	25.67
$39.65	950	5.00	$	39.65	—	$	39.65
$43.92	112,411	6.00	$	43.92	8,089	$	43.92
$45.26	40,000	6.00	$	45.26	10,000	$	45.26
$45.36	39,924	5.00	$	45.36	17,677	$	45.36
$46.43	759	5.00	$	46.43	253	$	46.43
$ 9.06 - $46.43	376,982	4.13	$	31.27	204,107	$	21.55

Assumptions used in the Black-Scholes option pricing model for the last three fiscal years were as follows for all stock appreciation rights plans:

	2015	2014	2013
Expected term in years	4.5	4.5	4.5
Expected dividend yield	1.20% – 1.32%	1.21% - 1.49%	1.76% – 1.95%
Expected price volatility	35.39% – 40.00%	36.34% – 53.00%	45.00% – 47.83%
Risk-free interest rate	2.32 – 2.73	0.75 - 2.98	0.59 – 0.89

Directors Grants

During fiscal 2013 the Company granted each of its independent directors 1,000 shares of the Company’s common stock which subsequently split 2 for 1. In fiscal 2014 and 2015, each of its independent directors were granted 2,000 shares of the Company’s common stock. These common stock grants were valued at $44.90, $36.70 and $32.51 per share for fiscal 2015, 2014 and 2013, respectively, which was the market price of our common stock on the grant date.

Employee Stock Purchase Plan

The Company also has an employee stock purchase plan, which allows employees of the Company to purchase common stock of the Company through accumulated payroll deductions. Offerings under this plan have a duration of 24 months (the "offering period"). On the first day of an offering period (the “enrollment date”) the participant is granted the option to purchase shares on each exercise date at the lower of 85% of the market value of a share of our common stock on the enrollment date or the exercise date. The participant’s right to purchase common stock under the plan is restricted to no more than $25,000 per calendar year and the participant may not purchase more than 5,000 shares during any offering period. Participants may terminate their interest in a given offering or a given exercise period by withdrawing all of their accumulated payroll deductions at any time prior to the end of the offering period.

Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows:

Year Ended February 28,	2015		2014		2013
	(In thousands)
Compensation Expense	$	4,080	$	3,703	$	3,175
Income tax benefits	$	1,428	$	1,296	$	1,111

Unrecognized compensation cost related to all the above at February 28, 2015 totaled $4.1 million. These costs are expected to be recognized over a weighted period of 2.66 years.

The Company did not receive cash from the exercise of stock options for the years ended February 28, 2015 and 2014. Cash received from the exercise of stock options for the year ended February 28, 2013 was insignificant. The actual tax benefit realized for tax deductions from options exercised each of these years totaled $0.3 million, $1.6 million and $1.3 million, respectively.

The Company’s policy is to issue shares required under these plans from the Company’s treasury shares or from the Company’s authorized but unissued shares. The Company has no formal or informal plan to repurchase shares on the open market to satisfy these requirements.

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Document and Entity Information (USD $)	12 Months Ended
	Feb. 28, 2015	Apr. 14, 2015	Aug. 29, 2014
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Feb. 28, 2015
Entity Registrant Name	AZZ INC
Entity Central Index Key	0000008947
Current Fiscal Year End Date	--02-28
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2015
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		25,765,025
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 1,154,492,795

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Acquisitions (Details Textual) (USD $)	12 Months Ended			0 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013	Jun. 30, 2014	Mar. 29, 2013	Jun. 01, 2012	Oct. 01, 2012	Jun. 02, 2012	Jan. 02, 2013
Business Acquisition [Line Items]
Liabilities assumed				$ 300,000
Goodwill	279,074,000	278,556,000	171,886,000
Purchase price of acquisition, net of cash	11,518,000	275,702,000	137,058,000
Zalk Steel [Member]
Business Acquisition [Line Items]
Goodwill				3,300,000
Purchase price of acquisition				10,500,000
Intangible assets acquired				3,400,000
Aquilex [Member]
Business Acquisition [Line Items]
Assets acquired								303,229,000
Goodwill								109,636,000
Acquisition related costs		5,400,000
Additional payment on performance					3,900,000
Purchase price of acquisition					275,700,000
Business Acquisition Amount of Payment Due at Close under Purchase Agreement					271,800,000
Intangible assets acquired								87,100,000
G3 Galvananizing Limited [Member]
Business Acquisition [Line Items]
Assets acquired									12,000,000
Liabilities assumed									3,100,000
Goodwill									4,200,000
Acquisition related costs		500,000
Nuclear Logistics Incorporated [Member]
Business Acquisition [Line Items]
Future contingent consideration		9,100,000						20,000,000
Assets acquired								107,298,000
Goodwill								32,323,000
Acquisition related costs			900,000
Certain liabilities payoff								3,800,000
Purchase price of acquisition						77,000,000
Intangible assets acquired								50,600,000
Galvcast Manufacturing Inc [Member]
Business Acquisition [Line Items]
Assets acquired							48,000,000
Liabilities assumed							900,000
Goodwill							15,700,000
Acquisition related costs		$ 300,000
Goodwill, deductible							75.00%
Customer Relationships [Member] | Zalk Steel [Member]
Business Acquisition [Line Items]
Weighted average useful life	19 years
Customer Related Intangibles [Member] | Aquilex [Member]
Business Acquisition [Line Items]
Weighted average useful life		14 years
Trade Names [Member] | Zalk Steel [Member]
Business Acquisition [Line Items]
Weighted average useful life	19 years
Trade Names [Member] | Aquilex [Member]
Business Acquisition [Line Items]
Weighted average useful life		19 years
Noncompete Agreements [Member] | Zalk Steel [Member]
Business Acquisition [Line Items]
Weighted average useful life	5 years
Minimum [Member] | Technology [Member] | Aquilex [Member]
Business Acquisition [Line Items]
Weighted average useful life		3 years
Maximum [Member] | Technology [Member] | Aquilex [Member]
Business Acquisition [Line Items]
Weighted average useful life		9 years

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Long-term Debt (Notes)

12 Months Ended

Feb. 28, 2014

Debt Disclosure [Abstract]

Long-term debt

ebt

Debt consisted of the following:	2015			2014
	(In thousands)
Senior Notes, due in balloon payment in January 2021	$	125,000		$	125,000
Senior Notes, due in annual installments of $14,286 beginning in March 2012 through March 2018	$	57,143		$	71,428
Term Note, due in quarterly installments beginning in June 2013 through March 2018	$	65,625		$	72,188
Revolving line of credit with bank	$	90,080		$	137,000
Total debt	$	337,848		$	405,616
Less amount due within one year	$	(21,866	)	$	(20,848	)
Total long-term debt	$	315,982		$	384,768

On March 27, 2013, we entered into a Credit Agreement (the “Credit Agreement”) with Bank of America and other lenders. The Credit Agreement provided for a $75.0 million term facility and a $225.0 million revolving credit facility that included a $75.0 million “accordion” feature. The Credit Agreement is used to provide for working capital needs, capital improvements, dividends, future acquisitions and letter of credit needs.

Interest rates for borrowings under the Credit Agreement are based on either a Eurodollar Rate or a Base Rate plus a margin ranging from 1.0% to 2.0% depending on our Leverage Ratio. The Eurodollar Rate is defined as LIBOR for a term equivalent to the borrowing term (or other similar interbank rates if LIBOR is unavailable). The Base Rate is defined as the highest of the applicable Fed Funds rate plus 0.50%, the Prime rate, or the Eurodollar Rate plus 1.0% at the time of borrowing. The Credit Agreement also carries a Commitment Fee for the unfunded portion ranging from 0.20% to 0.30% per annum, depending on our Leverage Ratio.

The $75.0 million term facility under the Credit Agreement requires quarterly principal and interest payments commencing on June 30, 2013 through March 27, 2018, the maturity date.

The Credit Agreement provides various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $230.0 million, plus 50.0% of future net income, b) maintain on a consolidated basis a Leverage Ratio (as defined in the Credit Agreement) not to exceed 3.25:1.0, c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.75:1.0 and d) not to make Capital Expenditures (as defined in the Credit Agreement) on a consolidated basis in an amount in excess of $60.0 million during the fiscal year ended February 28, 2014 and $50.0 million during any subsequent year.

As of February 28, 2015, we had $90.1 million of outstanding debt against the revolving credit facility provided and letters of credit outstanding in the amount of $13.0 million, which left approximately $122.0 million of additional credit available under the Credit Agreement.

On March 31, 2008, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) pursuant to which the Company issued $100.0 million aggregate principal amount of its 6.24% unsecured Senior Notes (the “2008 Notes”) due March 31, 2018 through a private placement (the “2008 Note Offering”). Pursuant to the Note Purchase Agreement, the Company’s payment obligations with respect to the 2008 Notes may be accelerated upon any Event of Default, as defined in the Note Purchase Agreement.

The Company entered into an additional Note Purchase Agreement on January 21, 2011 (the “2011 Agreement”), pursuant to which the Company issued $125.0 million aggregate principal amount of its 5.42% unsecured Senior Notes (the “2011 Notes”), due in January of 2021, through a private placement (the “2011 Note Offering”). Pursuant to the 2011 Agreement, the Company's payment obligations with respect to the 2011 Notes may be accelerated under certain circumstances.

The 2008 Notes and the 2011 Notes each provide for various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $116.9 million plus 50.0% of future net income; b) maintain a ratio of indebtedness to EBITDA (as defined in Note Purchase Agreement) not to exceed 3.25:1.00; c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Note Purchase Agreement) of at least 2.0:1.0; d) not at any time permit the aggregate amount of all Priority Indebtedness (as defined in the Note Purchase Agreement) to exceed 10.0% of Consolidated Net Worth (as defined in the Note Purchase Agreement).

As of February 28, 2015, the Company was in compliance with all of its debt covenants.

Maturities of debt are as follows:

Fiscal Year	(In thousands)
2016	$	21,866
2017	23,192
2018	16,629
2019	151,161
2020	—
Thereafter	125,000
Total	$	337,848

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Income Taxes - Schedule of Net Operating Loss Carryforwards (Details) (USD $)	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 1,588,000	$ 3,793,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	2,200,000
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, tax impact	0	1,089,000
State
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, tax impact	1,919,000	1,919,000
Operating loss carryforwards	31,900,000
Foreign
Operating Loss Carryforwards [Line Items]
Operating loss carryforward, tax impact	0	1,260,000
Deferred Tax Asset, Net Operating Loss from Purchase Stock [Member]
Operating Loss Carryforwards [Line Items]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	1,000,000
Deferred Tax Asset, Foreign Operations [Member]
Operating Loss Carryforwards [Line Items]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 1,200,000

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Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Feb. 28, 2015	Feb. 28, 2014
Deferred income tax assets:
Employee related items	$ 4,690,000	$ 4,314,000
Inventories	1,080,000	839,000
Accrued warranty	893,000	504,000
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts	565,000	2,342,000
Net operating loss carry forward	1,919,000	4,268,000
Other	0	606,000
Total deferred income tax assets	9,147,000	12,873,000
Deferred Tax Assets, Valuation Allowance	(1,588,000)	(3,793,000)
Deferred Tax Assets, Net of Valuation Allowance	7,559,000	9,080,000
Deferred income tax liabilities:
Depreciation methods and property basis differences	(28,611,000)	(19,995,000)
Deferred Tax Liabilities, Goodwill and Intangible Assets	(26,161,000)	(20,719,000)
Total deferred income tax liabilities	(54,772,000)	(40,714,000)
Net deferred income tax liabilities	(47,213,000)	(31,634,000)
Excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries	$ 17,500,000

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Schedule II : Valuation and Qualiying Accounts and Reserves (Details) (Allowance for Doubtful Accounts [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Feb. 28, 2015	Feb. 28, 2014	Feb. 28, 2013
Allowance for Doubtful Accounts [Member]
Allowance for Doubtful Accounts
Balance at Beginning of year	$ 1,744	$ 1,000	$ 898
Valuation Allowances and Reserves, Adjustments	458	(116)	446
Valuation Allowances and Reserves, Deductions	(700)	(294)	(344)
Effect of exchange rate	(30)	(30)	0
Balance at end of year	1,472	1,744	1,000
Valuation Allowances and Reserves, Adjustments	$ 0	$ 1,184	$ 0