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

	2021			2020			2019
Current:
Federal	$	9,627		$	10,838		$	11,381
State and local		2,279			1,642			1,858
Total current		11,906			12,480			13,239
Deferred:
Federal		(2,217	)		526			(651	)
State and local		(496	)		(47	)		(91	)
Total deferred		(2,713	)		479			(742	)
Total provision for income taxes	$	9,193		$	12,959		$	12,497

The Company’s effective tax rate on earnings from operations for the year ended February 28, 2021, was 27.6%, compared to 25.3% and 25.0% in 2020 and 2019, respectively. The following summary reconciles the statutory U.S. federal income tax rate to the Company’s effective tax rate for the fiscal years ended:

	2021			2020			2019
Statutory rate		21.0	%		21.0	%		21.0	%
Provision for state income taxes, net of federal income tax benefit		4.4			2.5			2.8
Change in valuation allowance		—			0.8			—
Federal true-up		0.8			0.4			0.1
Stock compensation and Section 162(m) limitation		1.4			0.5			1.1
Other		—			0.1			—
		27.6	%		25.3	%		25.0	%

Deferred taxes are recorded to give recognition to temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The tax effects of these temporary differences are recorded as deferred tax assets and deferred tax liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years. Deferred tax liabilities generally represent items that have been deducted for tax purposes, but have not yet been recorded in the consolidated statements of operations. To the extent there are deferred tax assets that are more likely than not to be realized, a valuation allowance would be recorded. Management does not expect to be able to utilize the foreign tax credit before it expires in 2026. Therefore, a full valuation allowance was established in fiscal year 2020. IRS code Section 162(m) limits the amount of deductible compensation for tax purposes paid to certain covered employees.

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

Deferred tax assets	2021			2020
Allowance for doubtful receivables	$	198		$	164
Inventories		1,047			925
Employee compensation and benefits		725			883
Pension and noncurrent employee compensation benefits		4,246			5,011
Operating lease liabilities		4,700			4,868
Net operating loss and foreign tax credits		1,067			1,097
Stock options		—			233
Other		291			60
Total deferred tax assets	$	12,274		$	13,241
Less: valuation allowance		(408	)		(408	)
Total deferred tax assets, net	$	11,866		$	12,833
Deferred tax liabilities
Property, plant and equipment	$	4,517		$	6,060
Goodwill and other intangible assets		10,240			10,547
Right-of-use assets		4,631			4,804
Property tax		131			95
Other		24			76
Total deferred tax liabilities	$	19,543		$	21,582
Net deferred income tax liabilities	$	7,677		$	8,749

At fiscal year-end 2021, the Company had federal net operating loss (“NOL”) carry forwards of approximately $2.7 million. This NOL is related to the acquisitions of Flesh and Impressions Direct. The NOL is subject to a Section 382 limitation of $0.2 million per year and expiring in 2040. Based on historical earnings and expected sufficient future taxable income, management believes it will be able to fully utilize the NOL.

Accounting standards require a two-step approach to determine how to recognize tax benefits in the financial statements where recognition and measurement of a tax benefit must be evaluated separately. A tax benefit will be recognized only if it meets a “more-likely-than-not” recognition threshold. For tax positions that meet this threshold, the tax benefit recognized is based on the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the taxing authority.

At fiscal year-end 2021 and 2020, unrecognized tax benefits related to uncertain tax positions, including accrued interest and penalties of $0.1 million and $0.1 million, respectively, are included in other liabilities on the consolidated balance sheets and would impact the effective rate if recognized. The interest expense associated with the unrecognized tax benefit is not material. A reconciliation of the change in the unrecognized tax benefits for fiscal years ended 2021 and 2020 is as follows (in thousands):

	2021			2020
Balance at March 1, 2020	$	100		$	120
Additions based on tax positions		63			—
Reductions due to lapses of statues of limitations		(33	)		(20	)
Balance at February 28, 2021	$	130		$	100

The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company has concluded all U.S. federal income tax matters for years through 2015. All material state and local income tax matters have been concluded for years through 2015 and foreign tax jurisdictions through 2015.

The Company recognizes interest expense on underpayments of income taxes and accrued penalties related to unrecognized non-current tax benefits as part of the income tax provision. Other than amounts included in the unrecognized tax benefits, the Company did not recognize any interest or penalties for the fiscal years ended 2021, 2020 and 2019.

The outbreak of the COVID-19 pandemic presents various global risks. The full impact of the COVID-19 pandemic continues to evolve as of the date of this report. Management is actively monitoring the situation as pertains to the Company’s financial condition, liquidity, operations, suppliers, industry and workforce. Given the ongoing evolution of the pandemic and the global responses to control its spread, the Company is not able to estimate the ultimate effects of the COVID-19 pandemic on its results of operation, financial condition, or liquidity for fiscal year 2022.