Income Taxes (Tables)

12 Months Ended

Feb. 28, 2023

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for continuing and discontinued operations for fiscal year 2023, 2022 and 2021 consisted of the following (in thousands):


		2023		2022		2021
Income from continuing operations before income taxes
Domestic		$	80,508	$	67,697	$	36,087
Foreign		8,167		5,334		2,344
Income from continuing operations before income taxes		$	88,675	$	73,031	$	38,431
Current provision:
	Federal	$	(1,848)	$	17,994	$	11,003
	Foreign	2,127		2,003		177
	State and local	5,918		2,761		2,292
Total current provision for income taxes		$	6,197	$	22,758	$	13,472
Deferred provision (benefit):
	Federal	$	17,273	$	933	$	(3,331)
	Foreign	(24)		(491)		(775)
	State and local	(1,110)		14		1,882
Total deferred provision for (benefit from) income taxes for continuing operations		$	16,139	$	456	$	(2,224)
Total provision for income taxes for continuing operations		$	22,336	$	23,214	$	11,248
Income taxes (benefit) on discontinued operations		(19,544)		(891)		135
Total provision for income taxes		$	2,792	$	22,323	$	11,383

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the federal statutory income tax rate to the effective income tax rate for continuing operations is as follows for the prior three fiscal years:


	2023		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Permanent differences	0.6		(0.2)		(12.5)
State income taxes, net of federal income tax benefit	4.4		3.0		7.3

Stock compensation	0.1		0.1		1.5
Tax credits	(0.0)		(0.3)		(1.8)
Foreign tax rate differential	0.4		0.4		—
Uncertain tax positions	(1.5)		(1.7)		1.1
Audit settlement	—		0.6		2.5
Management fee	3.2		6.2		10.0
Outside basis - AIS JV	(3.7)		—		—

Other	0.7		2.8		0.2
Effective income tax rate	25.2	%	31.9	%	29.3	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred income tax liability for continuing operations are as follows for fiscal year 2023 and 2022 (in thousands):


	2023		2022
Deferred income tax assets:
Employee related items	$	12,607	$	3,750
Inventories	6,639		6,536
Accrued warranty	761		459
Accounts receivable	1,603		—
Lease liabilities	6,643		7,981
Net operating loss and other credit carry-forwards	1,842		5,575
Research and experiment expense	5,222		—
Interest expense limitation	15,362		686
Outside basis difference - JV	3,471		—
Other deferred income tax assets	860		92
	$	55,010	$	25,079
Less: valuation allowance	—		—
Total deferred income tax assets	55,010		25,079
Deferred income tax liabilities:
Depreciation methods and property basis differences	$	(48,604)	$	(20,723)
Right-of-use lease assets	(6,384)		(7,596)
Accounts receivable	—		(619)
Other assets and tax-deductible goodwill	(28,091)		(40,358)
Total deferred income tax liabilities	(83,079)		(69,296)
Net deferred income tax liabilities	$	(28,069)	$	(44,217)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of total unrecognized tax benefits, which is included in "Other long-term liabilities" in the consolidated balance sheets for the years ended February 28, 2023 and 2022 is as follows (in thousands):


	2023		2022
Balance at beginning of period	$	2,294	$	3,350
Increase for tax positions related to current periods:
Gross increases	195		513
Gross decreases	—		(260)
Increase for tax positions related to prior periods:
Gross increases	2,653		997
Gross decreases	(729)		(356)
Decreases related to settlements with taxing authorities	(175)		(691)
Lapse of statute of limitations	(571)		(1,259)
Balance at end of period	$	3,667	$	2,294