Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 28, 2023

Accounting Policies [Abstract]

Financing Receivable, Allowance for Credit Loss

The following table shows the changes in the allowance for credit losses for fiscal 2023, 2022 and 2021 (in thousands):

	2023		2022		2021
Balance at beginning of year	$	5,395	$	5,378	$	5,551
Adjustment based on aged receivables analysis	(58)		100		207
Charge-offs, net of recoveries	83		(85)		(572)
Other	327		—		116
Effect of exchange rate changes	5		2		76
Balance at end of year(1)	$	5,752	$	5,395	$	5,378
(1) For fiscal 2023, 2022 and 2021, the allowance for credit losses includes $5.4 million of reserves related to the AZZ Infrastructure Solutions segment that were retained following the AIS divestiture.

Disaggregation of Revenue

Disaggregated Revenue

Revenue by segment and geography is disclosed in Note 14. In addition, the following table presents disaggregated revenue, from continuing operations, by customer industry for fiscal years 2023, 2022 and 2021 (in thousands):

	2023		2022		2021
Sales:
Construction	$	667,852	$	119,294	$	106,166
Industrial	152,731		113,561		128,886
Consumer	105,587		—		—
Transportation	135,319		98,106		87,562
Electrical/Utility	94,188		71,073		69,151
Other (1)	167,972		123,564		88,809
Total sales	$	1,323,649	$	525,598	$	480,574
(1) Other includes less significant markets, such as agriculture, recreation, petro-chem, AZZ Tubular products and sales from recycling and other.

Schedule of Other Significant Noncash Transactions

The Company recorded the following supplemental cash flow disclosures for fiscal 2023, 2022 and 2021 (in thousands):

	2023		2022		2021
Cash paid for interest	$	77,989	$	6,062	$	8,999
Cash paid for income taxes	24,489		31,660		16,118
Non-cash investing and financing activities:
Issuance of preferred stock in exchange for convertible notes	233,722		—		—
Accrued dividends on Series A Preferred Stock	2,400		—		—
Accruals for capital expenditures	1,748		864		1,446

Property, Plant and Equipment

Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows:

Buildings and structures	10-27 years
Machinery and equipment	3-15 years
Furniture and fixtures	3-15 years
Automotive equipment	3-5 years
Computers and software	3-7 years

Property, plant and equipment consisted of the following as of February 28, 2023 and February 28, 2022 (in thousands):

	As of February 28,
	2023		2022
Land	$	52,322	$	21,831
Building and structures	291,254		154,982
Machinery and equipment	391,786		225,824
Furniture, fixtures, software and computers	28,906		29,824
Automotive equipment	2,757		3,807
Construction in progress	24,681		8,545
	791,706		444,813
Less accumulated depreciation	(293,203)		(251,455)
Property, plant, and equipment, net	$	498,503	$	193,358

The following table outlines the classification of depreciation expense from continuing operations in the consolidated statements of income for fiscal 2023, 2022, and 2021 (in thousands):

	Year Ended February 28,
	2023		2022		2021
Cost of sales	$	49,413	$	23,795	$	23,619
Selling, general and administrative	2,564		1,628		1,694
Total depreciation expense	$	51,977	$	25,423	$	25,313