Income Taxes (Tables)

12 Months Ended

Feb. 28, 2019

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes

The following table represents components of the provision for income taxes for fiscal years ended (in thousands):

	2019			2018			2017
Current:
Federal	$	11,381		$	14,001		$	10,543
State and local		1,858			1,944			2,254
Total current		13,239			15,945			12,797
Deferred:
Federal		(651	)		(1,811	)		932
State and local		(91	)		17			(113	)
Total deferred		(742	)		(1,794	)		819
Total provision for income taxes	$	12,497		$	14,151		$	13,616

Statutory U.S. Federal Income Tax Rate to Company's Effective Tax Rate

The following summary reconciles the statutory U.S. federal income tax rate to the Company’s effective tax rate for the fiscal years ended:

	2019			2018				2017
Statutory rate		21.0	%		32.7		%		35.0		%
Provision for state income taxes, net of federal    income tax benefit		2.8			2.8				3.5
Domestic production activities deduction		—			(2.8	)			(2.5	)
Valuation allowance		—			—				(3.4	)
Federal true-up		0.4			4.1				0.6
Tax Cuts and Jobs Act		—			(7.6	)			—
Other		0.8			1.0				0.8
		25.0	%		30.2		%		34.0		%

On December 22, 2017, H.R. 1, known as the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law.  Among other things, the Tax Act permanently lowered the corporate tax rate to 21% from the prior maximum rate of 35%, effective for tax years including or commencing January 1, 2018.  As a result of the reduction of the corporate tax rate to 21%, we re-valued our deferred tax assets and liabilities as of the date of enactment, with resulting tax effects accounted for in the reporting period of enactment. This change in the statutory tax rate resulted in reduction in income tax expense being recognized of $3.6 million in the fourth quarter of fiscal year 2018 due to the adjustment of deferred tax liabilities based on the expected prevailing tax rate at the expected time of their realization.

Components of Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities are summarized as follows (in thousands) for fiscal years ended:

Deferred tax assets	2019		2018
Allowance for doubtful receivables	$	204	$	255
Inventories		924		738
Employee compensation and benefits		820		703
Pension and noncurrent employee compensation    benefits		2,653		2,888
Net operating loss and foreign tax credits		429		429
Stock options		326		285
Total deferred tax assets	$	5,356	$	5,298
Deferred tax liabilities
Property, plant and equipment	$	5,485	$	4,140
Goodwill and other intangible assets		10,710		7,158
Property tax		59		158
Other		—		31
Total deferred tax liabilities	$	16,254	$	11,487
Net deferred income tax liabilities	$	10,898	$	6,189

Reconciliation of Change in Unrecognized Tax Benefits

A reconciliation of the change in the unrecognized tax benefits for fiscal years ended 2019 and 2018 is as follows (in thousands):

	2019			2018
Balance at March 1, 2018	$	141		$	249
Additions based on tax positions		26			(25	)
Reductions due to lapses of statues of limitations		(47	)		(83	)
Balance at February 28, 2019	$	120		$	141