Income Taxes (Tables)

12 Months Ended

Feb. 28, 2025

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for continuing and discontinued operations for fiscal year 2025, 2024 and 2023 consisted of the following (in thousands):


	Year Ended
	February 28, 2025		February 29, 2024		February 28, 2023
Income from continuing operations before income taxes
Domestic	$	165,822	$	123,955	$	80,508
Foreign	4,861		6,148		8,167
Income from continuing operations before income taxes	170,683		130,103		88,675
Current provision:
Federal	28,660		19,839		(1,848)
Foreign	1,738		2,189		2,127
State and local	3,350		1,716		5,918
Total current provision for income taxes	33,748		23,744		6,197
Deferred provision (benefit):
Federal	7,123		3,920		17,273
Foreign	(340)		(316)		(24)
State and local	1,319		1,148		(1,110)
Total deferred provision for income taxes for continuing operations	8,102		4,752		16,139
Total provision for income taxes for continuing operations	41,850		28,496		22,336
Income taxes (benefit) on discontinued operations	—		—		(19,544)
Total provision for income taxes	$	41,850	$	28,496	$	2,792

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 28, 2025		February 29, 2024		February 28, 2023
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Permanent differences	1.0		0.5		0.6
State income taxes, net of federal income tax benefit	2.3		1.9		4.4

Stock compensation	(0.5)		0.1		0.1
Tax credits	(0.2)		(1.7)		0.0
Foreign tax rate differential	0.2		0.2		0.4
ASC 740-10 Uncertain tax positions	0.1		(1.8)		(1.5)

Management fee	—		—		3.2
Outside basis - AVAIL JV	—		—		(3.7)

Other	0.6		1.7		0.7
Effective income tax rate	24.5	%	21.9	%	25.2	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred income tax liability are as follows for fiscal year 2025 and 2024 (in thousands):


	As of
	February 28, 2025		February 29, 2024
Deferred income tax assets:
Employee related items	$	10,867	$	12,148
Inventories	5,205		5,756
Accrued warranty	1,336		1,268
Accounts receivable	1,926		2,061
Lease liabilities	6,406		6,033
Net operating loss and other credit carryforwards	5,707		4,739
Research and experiment expenses	5,046		5,688
Interest expense limitation	8,565		13,580
Outside basis difference—AVAIL JV	274		—
Other deferred income tax assets	334		281


Total deferred income tax assets	45,666		51,554

Deferred income tax liabilities:
Depreciation methods and property basis differences	$	(36,671)	$	(42,508)
Right-of-use lease assets	(6,219)		(5,858)

Outside basis difference	—		(1,466)
Other assets and tax-deductible goodwill	(41,975)		(34,683)
Total deferred income tax liabilities	(84,865)		(84,515)
Net deferred income tax liabilities	$	(39,199)	$	(32,961)

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, 2025 and February 29, 2024 is as follows (in thousands):


	As of
	February 28, 2025		February 29, 2024
Balance at beginning of period	$	1,808	$	3,667
Increase for tax positions related to current periods:
Gross increases	73		177

Increase for tax positions related to prior periods:
Gross increases	—		100
Gross decreases	—		(1,699)

Lapse of statute of limitations	(182)		(437)
Balance at end of period	$	1,699	$	1,808

Current year decreases to our UTPs primarily relate to matters related to research and development credits.