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Defined Benefit Pension Plan
 12 Months Ended
Feb. 28, 2025
Postemployment Benefits [Abstract]  
Employee Benefit Plans
16. Employee Benefit Plans
401(k) Retirement Plan
We have 401(k) retirement plans covering substantially all of our employees. Company contributions to the 401(k) retirement plans were $6.2 million, $6.3 million, and $5.6 million for fiscal 2025, 2024, and 2023, respectively.
Pension and Employee Benefit Obligations
As of February 28, 2025, we have a defined benefit pension plan for certain employees employed by Precoat Metals as of May 13, 2022 (the "Plan"). Prior to the Precoat Acquisition, benefit accruals were frozen for all participants. After the freeze, participants did not accrue any future benefits under the Plan, and any new hires are not eligible to participate in the Plan. We fund the pension plan as required by local regulations.
Our investment strategy is to build an efficient, well diversified portfolio based on a long-term strategic outlook of the investment markets. The investment markets outlook utilizes both the historical based and forward-looking return forecasts to
establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the specific needs of the Plan. The core asset allocation utilizes investment portfolios of various asset classes and investment managers in order to maximize the Plan’s return while providing layers of diversification to mitigate risk. Plan assets of $100.3 million as of February 28, 2025, consisted of 4.1% cash, 46.8% equity securities, 10.1% collective investment trusts and 39.0% corporate and government debt. Net periodic benefit costs related to the plan were $0.9 million, $1.1 million and $0.6 million for fiscal 2025, 2024, and 2023, respectively.
The components of net benefit cost other than the employer service cost are included in "Selling, general and administrative" expense. The components of net benefit cost related to the Plan were as follows (in thousands):
Year Ended
February 28, 2025February 29, 2024February 28, 2023
Disclosed benefit cost
Interest cost$6,833 $7,031 $5,264 
Expected return on plan assets(5,954)(5,947)(4,686)
Subtotal879 1,084 578 
Net periodic benefit cost (income)879 1,084 578 
Disclosed net benefit cost879 1,084 578 
Presentation of benefit cost pursuant to ASC 715-20
Other components of net periodic benefit cost879 1,084 578 
Disclosed net benefit cost$879 $1,084 $578 
Assumptions used to determine benefit cost:
Discount rate5.61 %5.59 %4.76 %
Expected long-term rate of return on plan assets6.25 %6.25 %5.50 %
The changes in benefit obligation and the funded status of the Plan as of and for the years ended below were as follows (in thousands):
As of
Current and non-current classificationFebruary 28, 2025February 29, 2024
Non-current liability$(24,587)$(31,148)
Net balance sheet asset (liability)(24,587)(31,148)
Reconciliation of net balance sheet asset (liability)
Net balance sheet asset (liability) at beginning of fiscal year(31,148)(31,287)
Interest cost(6,833)(7,031)
Expected return on plan assets5,954 5,947 
Actuarial gain (loss)(530)(408)
Employer contributions7,970 1,631 
Net balance sheet asset (liability) at end of fiscal year$(24,587)$(31,148)
Assumptions and dates used for disclosure:
Discount rate5.52 %5.61 %
Census dateOctober 1, 2024October 1, 2023
The following table presents information for the Plan with projected benefit obligations in excess of plan assets (in thousands):
As of
February 28, 2025February 29, 2024
Projected benefit obligation$(124,898)$(127,890)
Fair value of plan assets, excluding receivable contributions100,311 96,742 
Net balance sheet asset (liability)$(24,587)$(31,148)
Pre-tax amounts recognized in other comprehensive income (loss) were as follows (in thousands):
Year End
February 28, 2025February 29, 2024February 28, 2023
Net loss (gain)$776 $246 $(162)
Accumulated other comprehensive (income) loss before adjustment for tax effects ("AOCI")776 246 (162)
Development of AOCI
AOCI at beginning of fiscal year246 (162)— 
Occurring during the year:
Net loss (gain)530 408 (162)
AOCI at fiscal year end$776 $246 $(162)
In fiscal 2026, we expect to contribute $6.0 million to the Plan.
Benefit payments we expect to pay, including amounts related to expected future services that we expect to receive, are as follows (in thousands):
Fiscal Year:Pension Benefits
2026$12,422 
202711,609 
202811,350 
202911,053 
203010,736 
2031 through 203548,033 
Changes in disclosed plan obligations and plan assets were as follows (in thousands):
As of
February 28, 2025February 29, 2024
Change in projected benefit obligation ("PBO")
PBO at beginning of fiscal year$127,890 $131,787 
Interest cost6,833 7,031 
Actuarial loss (gain)1,727 637 
Benefits paid from plan assets(11,552)(11,565)
PBO at fiscal year end$124,898 $127,890 
Change in plan assets
Fair value of plan assets at beginning of fiscal year96,742 100,500 
Actual return on plan assets7,151 6,176 
Employer contributions7,970 1,631 
Benefits paid(11,552)(11,565)
Fair value of plan assets at fiscal year end$100,311 $96,742 
Year Ended
February 28, 2025February 29, 2024February 28, 2023
Reconciliation of net loss (gain)
Net amount at beginning of fiscal year$246 $(162)$— 
Experience loss (gain)530 408 (162)
Net amount at fiscal year end$776 $246 $(162)
The following table presents a reconciliation of the fair value and market-related value of the Plan assets (in thousands).
As of
February 28, 2025February 29, 2024
Reconciliation of fair value of plan assets
Fair value of plan assets at beginning of fiscal year$96,742 $100,500 
Actual return on plan assets7,151 6,176 
Employer contributions7,970 1,631 
Benefits paid(11,552)(11,565)
Fair value of plan assets at end of fiscal year$100,311 $96,742 
Rate of return on invested assets
Weighted invested assets95,654 95,542 
Rate of return7.48 %5.90 %
Investment Loss/(Gain)
Actual return7,151 6,176 
Expected return5,954 5,947 
Loss (gain)(1,197)229 
The weighted-average assumptions used to determine the benefit obligation were as follows:
As of
February 28, 2025February 29, 2024
Discount rate5.52 %5.61 %
Expected long-term rate of return on plan assets6.75 %6.25 %
The expected long-term rate of return on plan assets is based on a forward-looking expected asset return model. This model derives an expected rate of return based on the target asset allocation of the Plan's assets. The model reflects the positive effect of periodic rebalancing among diversified asset classes. We select an expected asset return that is supported by this model.
The following table presents the fair values of the assets of our pension plans as of February 28, 2025 and February 29, 2024 by level of the fair value hierarchy. Assets categorized in Level 1 of the hierarchy are measured at fair value using a market approach based on unadjusted quoted prices from national securities exchanges. No assets were categorized in Level 2 or Level 3 of the hierarchy as of February 28, 2025 and February 29, 2024. Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables to permit a reconciliation to total plan assets. We do not fund or fully fund U.S. nonqualified and certain foreign pension plans that are not subject to funding requirements.
As of
February 28, 2025February 29, 2024
Level 1Level 2Assets measured at Net Asset ValueTotalLevel 1Level 2Assets measured at Net Asset ValueTotal
Equity securities$— $— $46,936 $46,936 $— $— $46,205 $46,205 
Collective investment trusts— — 10,164 10,164 — — 10,100 10,100 
Corporate bonds— — 13,258 13,258 — — 11,617 11,617 
U.S. Government bonds— — 6,729 6,729 — — 6,389 6,389 
Municipal bonds— — 19,090 19,090 — — 18,362 18,362 
Cash and cash equivalents4,134 — — 4,134 4,069 — — 4,069 
Total pension plan assets$4,134 $— $96,177 $100,311 $4,069 $— $92,673 $96,742