Income Taxes (Tables)

12 Months Ended

Feb. 28, 2013

Income from Continuing Operations before Income Taxes

Income from continuing operations before income taxes:

	2013			2012		2011
United States	$	88,405		$	73,811	$	135,859
International		(2,491	)		24,004		20,148
	$	85,914		$	97,815	$	156,007

Income Tax Expense from Corporation's Continuing Operations

Income tax expense from the Corporation’s continuing operations has been provided as follows:

	2013		2012		2011
Current:
Federal	$	6,007	$	6,793	$	23,263
International		839		8,767		8,980
State and local		1,620		9,666		8,104
		8,466		25,226		40,347
Deferred		27,530		15,391		28,642
	$	35,996	$	40,617	$	68,989

Reconciliation of Corporation's Income Tax Expense from Continuing Operations

Reconciliation of the Corporation’s income tax expense from continuing operations from the U.S. statutory rate to the actual effective income tax rate is as follows:

	2013			2012			2011
Income tax expense at statutory rate	$	30,070		$	34,235		$	54,602
State and local income taxes, net of federal tax benefit		3,638			3,870			5,568
Corporate-owned life insurance		(1,682	)		(726	)		(1,909	)
International items, net of foreign tax credits		1,880			135			697
Accruals and settlements		233			4,031			8,866
Other		1,857			(928	)		1,165
Income tax at effective tax rate	$	35,996		$	40,617		$	68,989

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Corporation’s deferred tax assets and liabilities are as follows:

	February 28, 2013			February 29, 2012
Deferred tax assets:
Employee benefit and incentive plans	$	63,889		$	65,897
Goodwill and other intangible assets		52,054			56,720
Net operating loss carryforwards		26,255			26,185
Reserves not currently deductible		24,271			27,675
Foreign tax credit carryforwards		15,177			25,957
Accrued expenses deductible as paid		11,713			5,473
Deferred capital loss		4,309			2,124
Inventory costing		4,287			2,194
Deferred revenue		2,439			6,501
Other (each less than 5 percent of total assets)		10,042			13,412
		214,436			232,138
Valuation allowance		(16,713	)		(14,504	)
Total deferred tax assets		197,723			217,634
Deferred tax liabilities:
Property, plant and equipment		47,744			37,640
Other		5,177			2,402
Total deferred tax liabilities		52,921			40,042
Net deferred tax assets	$	144,802		$	177,592

Net Deferred Tax Assets

Net deferred tax assets are included on the Consolidated Statement of Financial Position in the following captions:

	February 28, 2013			February 29, 2012
Deferred and refundable income taxes (current)	$	54,351		$	57,450
Deferred and refundable income taxes (noncurrent)		91,401			121,056
Deferred income taxes and noncurrent income taxes payable		(950	)		(914	)
Net deferred tax assets	$	144,802		$	177,592

Company's Total Gross Unrecognized Benefits

The following chart reconciles the Corporation’s total gross unrecognized tax benefits for the years ended February 28, 2013, February 29, 2012 and February 28, 2011:

	2013			2012			2011
Balance at beginning of year	$	30,360		$	43,323		$	45,661
Additions based on tax positions related to current year		—			270			2,177
Additions for tax positions of prior years		2,106			5,404			1,239
Reductions for tax positions of prior years		(184	)		(8,959	)		(2,405	)
Settlements		(9,122	)		(9,444	)		(2,972	)
Statute lapse		(1,501	)		(234	)		(377	)
Balance at end of year	$	21,659		$	30,360		$	43,323