Income Taxes (Tables)

12 Months Ended

Feb. 29, 2024

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for continuing and discontinued operations for fiscal year 2024, 2023 and 2022 consisted of the following (in thousands):


		Year Ended February 29/28,
		2024		2023		2022
Income from continuing operations before income taxes
Domestic		$	123,955	$	80,508	$	67,697
Foreign		6,148		8,167		5,334
Income from continuing operations before income taxes		$	130,103	$	88,675	$	73,031
Current provision:
	Federal	$	19,839	$	(1,848)	$	17,994
	Foreign	2,189		2,127		2,003
	State and local	1,716		5,918		2,761
Total current provision for income taxes		$	23,744	$	6,197	$	22,758
Deferred provision (benefit):
	Federal	$	3,920	$	17,273	$	933
	Foreign	(316)		(24)		(491)
	State and local	1,148		(1,110)		14
Total deferred provision for (benefit from) income taxes for continuing operations		$	4,752	$	16,139	$	456
Total provision for income taxes for continuing operations		$	28,496	$	22,336	$	23,214
Income taxes (benefit) on discontinued operations		—		(19,544)		(891)
Total provision for income taxes		$	28,496	$	2,792	$	22,323

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:


	Year Ended February 29/28,
	2024		2023		2022
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Permanent differences	0.5		0.6		(0.2)
State income taxes, net of federal income tax benefit	1.9		4.4		3.0

Stock compensation	0.1		0.1		0.1
Tax credits	(1.7)		—		(0.3)
Foreign tax rate differential	0.2		0.4		0.4
ASC 740-10 Uncertain tax positions	(1.8)		(1.5)		(1.7)
Audit settlement	—		—		0.6
Management fee	—		3.2		6.2
Outside basis - AVAIL JV	—		(3.7)		—

Other	1.7		0.7		2.8
Effective income tax rate	21.9	%	25.2	%	31.9	%

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 2024 and 2023 (in thousands):


	As of February 29/28,
	2024		2023
Deferred income tax assets:
Employee related items	$	12,148	$	12,607
Inventories	5,756		6,639
Accrued warranty	1,268		761
Accounts receivable	2,061		1,603
Lease liabilities	6,033		6,643
Net operating loss and other credit carryforwards	4,739		1,842
Research and experiment expenses	5,688		5,222
Interest expense limitation	13,580		15,362
Outside basis difference—JV	—		3,471
Other deferred income tax assets	281		860


Total deferred income tax assets	51,554		55,010
Deferred income tax liabilities:
Depreciation methods and property basis differences	$	(42,508)	$	(48,604)
Right-of-use lease assets	(5,858)		(6,384)

Outside basis difference	(1,466)		—
Other assets and tax-deductible goodwill	(34,683)		(28,091)
Total deferred income tax liabilities	(84,515)		(83,079)
Net deferred income tax liabilities	$	(32,961)	$	(28,069)

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 29, 2024 and February 28, 2023 is as follows (in thousands):


	As of February 29/28,
	2024		2023
Balance at beginning of period	$	3,667	$	2,294
Increase for tax positions related to current periods:
Gross increases	177		195

Increase for tax positions related to prior periods:
Gross increases	100		2,653
Gross decreases	(1,699)		(729)
Decreases related to settlements with taxing authorities	—		(175)
Lapse of statute of limitations	(437)		(571)
Balance at end of period	$	1,808	$	3,667