Income Taxes (Tables)

12 Months Ended

Feb. 29, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal year 2020, 2019 and 2018 consisted of the following (in thousands):

		2020			2019		2018
Income before income taxes:
Domestic		$	44,406		$	48,261	$	24,282
Foreign		20,484			14,744		6,617
Income before income taxes		$	64,890		$	63,005	$	30,899
Current provision:
	Federal	$	12,563		$	4,251	$	3,445
	Foreign	5,259			2,829		1,958
	State and local	1,451			986		964
Total current provision for income taxes		$	19,273		$	8,066	$	6,367
Deferred provision (benefit):
	Federal	$	(1,452	)	$	2,970	$	(20,220	)
	Foreign	(21		)	539		100
	State and local	(1,144		)	222		(517		)
Total deferred provision for (benefit from) income taxes		$	(2,617	)	$	3,731	$	(20,637	)
Total provision for (benefit from) income taxes		$	16,656		$	11,797	$	(14,270	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows for the prior three fiscal years:

	2020		2019		2018
Statutory federal income tax rate	21.0	%	21.0	%	32.7	%
Permanent differences	0.1		0.5		1.6
State income taxes, net of federal income tax benefit	—		0.4		0.4
Benefit of Section 199 of the Code, manufacturing deduction	—		—		(2.2	)
Valuation allowance	—		(0.7	)	—
Stock compensation	—		0.5		(0.5	)
Tax credits	2.0		(4.1	)	(7.7	)
Foreign tax rate differential	1.4		1.1		(0.4	)
Deferred tax remeasurements	—		—		(78.9	)
Uncertain tax positions	1.4		—		—
Transition tax	—		—		8.6
Other	(0.2	)	—		0.2
Effective income tax rate	25.7	%	18.7	%	(46.2	)%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred income tax liability are as follows as of February 29, 2020 and February 28, 2019 (in thousands):

	2020			2019
Deferred income tax assets:
Employee related items	$	3,194		$	4,177
Inventories	823			758
Accrued warranty	548			369
Accounts receivable	1,379			(2,092		)
Lease liabilities	10,601			—
Net operating loss carry forward	5,845			7,173
	22,390			10,385
Less: valuation allowance	(725		)	(3,015		)
Total deferred income tax assets	21,665			7,370
Deferred income tax liabilities:
Depreciation methods and property basis differences	(21,447		)	(19,066		)
Right-of-use lease assets	(10,299		)	—
Other assets and tax-deductible goodwill	(27,845		)	(24,927		)
Total deferred income tax liabilities	(59,591		)	(43,993		)
Net deferred income tax liabilities	$	(37,926	)	$	(36,623	)

Summary of Operating Loss Carryforwards

The following table summarizes the Net operating loss (NOL) carry-forward balances as of February 29, 2020 and February 28, 2019 (in thousands):

 

	2020		2019
Federal	$	—	$	—
State	$	5,120	$	6,352
Foreign	$	725	$	821

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of total unrecognized tax benefits for the year ended February 29, 2020 is as follows (in thousands):

	2020
Balance at beginning of period	$	—
Increase for tax positions related to prior periods:
Gross increases	2,531
Balance at end of period	$	2,531