Income Taxes (Tables)

9 Months Ended

Nov. 30, 2022

Income Tax Disclosure [Abstract]

Disposal Groups, Including Discontinued Operations

The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheets as of November 30, 2022 and February 28, 2022, and consist of the following (in thousands):

	November 30, 2022		February 28, 2022
Current assets of discontinued operations:
Cash and cash equivalents	$	—	$	3,000
Accounts receivable	—		81,911
Inventories
Raw materials	—		36,581
Work-in-process	—		6,445
Finished goods	—		77
Contract assets	—		71,762
Prepaid expenses and other	—		1,888
Total current assets of discontinued operations	—		201,664
Long-term assets of discontinued operations:
Property, plant and equipment	—		37,490
Right-of-use asset	—		29,332
Goodwill	—		195,222
Intangibles and other assets, net	—		42,442
Deferred tax asset	—		1,726
Total non-current assets of discontinued operations	—		306,212
Total assets of discontinued operations	$	—	$	507,876
Current liabilities of discontinued operations:
Accounts payable	$	—	$	19,146
Income tax payable	—		(264)
Accrued salaries and wages	—		11,301
Other accrued liabilities	—		11,219
Customer deposits	—		387
Contract liabilities	—		42,465
Lease liability, short-term	—		4,029
Total current liabilities of discontinued operations	—		88,283
Long-term liabilities of discontinued operations:
Lease liability, long-term	—		24,207
Total long-term liabilities of discontinued operations	—		24,207
Total liabilities of discontinued operations	$	—	$	112,490

The results of operations from discontinued operations for the three and nine months ended November 30, 2022 and 2021, have been reflected as discontinued operations in the consolidated statements of operations and consist of the following (in thousands):

	Three Months Ended November 30,				Nine Months Ended November 30,
	2022		2021		2022		2021
Sales	$	42,300	$	96,654	$	256,224	$	282,278
Cost of sales	35,020		77,263		202,707		222,432
Gross margin	7,280		19,391		53,517		59,846
Selling, general and administrative	4,074		10,589		26,186		35,192
Loss on disposal of discontinued operations	45,010		—		159,910		—
Operating income (loss) from discontinued operations	(41,804)		8,802		(132,579)		24,654
Interest expense	2		2		8		63
Other (income) expense, net	2,002		1,504		6,270		1,468
Income (loss) from discontinued operations before income tax	(43,808)		7,296		(138,857)		23,123
Income tax (benefit) expense	(4,827)		(682)		(25,910)		(289)
Net income (loss) from discontinued operations	$	(38,981)	$	7,978	$	(112,947)	$	23,412
Earnings per common share from discontinued operations:
Basic earnings (loss) per share	$	(1.57)	$	0.32	$	(4.55)	$	0.94
Diluted earnings (loss) per share	$	(1.56)	$	0.32	$	(4.52)	$	0.93

The depreciation, amortization, capital expenditures, and significant operating and investing non-cash items of the discontinued operation for the nine months ended November 30, 2022 and 2021, consists of the following (in thousands):

	Nine Months Ended November 30,
	2022		2021
Amortization and depreciation	$	7,279	$	5,189
Purchase of property, plant and equipment	$	4,831	$	3,373
Non-cash loss on disposal of discontinued operations	$	159,910	$	—

The following table outlines income or loss and the related tax expense (benefit) from discontinued operations for the three and nine months ended November 30, 2022 and 2021 (in thousands):

	Three Months Ended November 30,				Nine Months Ended November 30,
	2022		2021		2022		2021
Income from discontinued operations before income taxes	$	1,202	$	7,296	$	21,053	$	23,123
Income tax (expense) benefit	(133)		682		(3,927)		289
Income from discontinued operations, net of tax	$	1,069	$	7,978	$	17,126	$	23,412
Loss on disposal of discontinued operations	$	(45,010)	$	—	$	(159,910)	$	—
Income tax benefit	4,960		—		29,837		—
Loss on disposal of discontinued operations, net of tax	$	(40,050)	$	—	$	(130,073)	$	—