Income Taxes (Tables)

12 Months Ended

Mar. 02, 2024

Income Tax Disclosure [Abstract]

Earnings before income taxes

Earnings before income taxes consisted of the following:

(In thousands)	2024		2023		2022
United States	$	133,185	$	126,859	$	70,039
International	(3,932)		(10,238)		(56,170)
Earnings before income taxes	$	129,253	$	116,621	$	13,869

Components of income tax expense

The components of income tax expense for each of the last three fiscal years are as follows:

(In thousands)	2024		2023		2022
Current
Federal	$	32,900	$	9,621	$	13,806
State and local	6,172		7,670		4,823
International	286		231		39
Total current	39,358		17,522		18,668
Deferred
Federal	(8,361)		(5,120)		(1,528)
State and local	(1,387)		(2,487)		(4,270)
International	—		422		(2,158)
Total deferred	(9,748)		(7,185)		(7,956)
Total non-current tax (benefit) expense	30		2,177		(329)
Total income tax expense	$	29,640	$	12,514	$	10,383

Schedule of effective income tax rate reconciliation

The following table provides a reconciliation of the statutory federal income tax rate to our consolidated effective tax rates:

	2024		2023		2022
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax benefit	2.4		3.5		16.4
Foreign tax rate differential	(0.2)		(0.2)		(15.4)
Valuation allowance	1.0		(4.7)		63.2
Nontaxable gain (loss) on life insurance policies	—		0.2		1.2
Deduction for foreign derived intangible income	(0.3)		(0.2)		(2.6)
Research & development tax credit	(1.3)		(1.5)		(9.4)
§162(m) Executive Compensation Limitation	0.8		0.8		3.5
Tax benefit of share based awards	(0.6)		(0.8)		(5.2)
Worthless stock deduction	—		(6.0)		—
Other, net	0.1		(1.4)		2.2
Consolidated effective income tax rate	22.9	%	10.7	%	74.9	%

Deferred tax assets and deferred tax liabilities

Deferred tax assets and deferred tax liabilities at March 2, 2024 and February 25, 2023 were:

(In thousands)	2024		2023
Deferred tax assets
Accrued expenses	$	4,565	$	1,862
Deferred compensation	11,138		9,666
Section 174 capitalized costs	12,450		12,222
Goodwill and other intangibles	2,342		4,316
Liability for unrecognized tax benefits	2,122		1,884
Unearned income	7,467		11,007
Operating lease liabilities	13,064		13,639
Net operating losses and tax credits	12,332		11,459
Other	4,773		3,656
Total deferred tax assets	70,253		69,711
Less: valuation allowance	(10,803)		(9,048)
Deferred tax assets, net of valuation allowance	59,450		60,663
Deferred tax liabilities
Depreciation	20,510		21,965
Operating lease, right-of-use assets	11,955		12,660
Bad debt	8,291		8,262
Prepaid expenses	2,131		2,467
Other	2,520		3,546
Total deferred tax liabilities	45,407		48,900
Net deferred tax assets (liabilities)	$	14,043	$	11,763

Unrecognized tax benefits

The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:

(In thousands)	2024		2023		2022
Gross unrecognized tax benefits at beginning of year	$	5,312	$	3,321	$	3,755
Gross increases in tax positions for prior years	91		2,298		108
Gross decreases in tax positions for prior years	(65)		(255)		(145)
Gross increases based on tax positions related to the current year	579		291		420
Gross decreases based on tax positions related to the current year	—		(27)		—
Settlements	(354)		—		(147)
Statute of limitations expiration	(510)		(316)		(670)
Gross unrecognized tax benefits at end of year	$	5,053	$	5,312	$	3,321