INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2013

INCOME TAXES

Schedule of components of income before income tax expense

(in thousands)

	Fiscal Years Ended the Last Day of February,
	2013		2012		2011
U.S.	$	50,834	$	26,445	$	17,189
Non-U.S.	84,680		99,647		85,439
Total	$	135,514	$	126,092	$	102,628

Schedule of components of income tax expense (benefit)

(in thousands)

	Fiscal Years Ended the Last Day of February,
	2013			2012		2011
U.S.
Current	$	26,369		$	5,342	$	5,373
Deferred	(8,776		)	4,630		2,381
	17,593			9,972		7,754
Non-U.S.
Current	5,464			5,204		1,609
Deferred	(3,209		)	542		(40		)
	2,255			5,746		1,569
Total	$	19,848		$	15,718	$	9,323

Schedule of effective income tax rate reconciliation

	Fiscal Years Ended the Last Day of February,
	2013		2012		2011
Expected effective income tax rate at the U.S. statutory rate	35.0	%	35.0	%	35.0	%
Impact of U.S. state income taxes and other	-0.2	%	1.5	%	1.7	%
Decrease in income taxes resulting from income from non-U.S. operations subject to varying income tax rates	-11.4	%	-13.6	%	-17.4	%
Effect of zero tax rate in Macau	-8.8	%	-9.5	%	-10.2	%
Decrease in income taxes resulting from tax audit settlements	0.0	%	-0.9	%	0.0	%
Effective income tax rate	14.6	%	12.5	%	9.1	%

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

(in thousands)

	Last Day of February,
	2013			2012
Deferred tax assets, gross:
Operating loss carryforwards	$	21,385		$	26,876
Accounts receivable	5,885			3,632
Inventories	8,648			8,256
Accrued expenses and other	10,600			11,534
Foreign currency contracts, interest rate swaps and deferred exchange gains	930			2,656
Total gross deferred tax assets	47,448			52,954
Valuation allowance	(19,040		)	(24,644		)
Deferred tax liabilities:
Depreciation and amortization	(62,807		)	(73,250		)
Total deferred tax assets (liabilities), net	$	(34,399	)	$	(44,940	)

Schedule of composition of net operating loss carryforwards and the approximate future taxable income to be generated in order to utilize all carryforwards prior to their expiration

(in thousands)

	At February 28, 2013
	Expiration	Gross			Required
	Date Range	Deferred Tax			Future Taxable
	(Where Applicable)	Assets			Income
U.S. operating loss carryforwards	2016 - 2032	$	3,483		$	30,610
Non-U.S. operating loss carryforwards with definite carryover periods	2013 - 2028	7,040			73,970
Non-U.S. operating loss carryforwards with indefinite carryover periods	Indefinite	10,862			35,503
Subtotals		21,385			140,083
Less portion of valuation allowance established for operating loss carryforwards		(16,299		)	(70,528		)
Total		$	5,086		$	69,555

Schedule of unrecognized tax benefits

(in thousands)

	Fiscal Years Ended
	2013			2012
Unrecognized tax benefits, beginning balance	$	13,213		$	2,481
Tax positions taken during the current period	-			486
Changes in tax positions taken during a prior period	3,194			2,750
Changes due to lapse in statute of limitations	(466		)	(585		)
Impact of foreign currency remeasurement on unrecognized tax benefits in the current period	(182		)	(7		)
Additions due to acquisitions	-			8,088
Unrecognized tax benefits, ending balance	$	15,759		$	13,213

Schedule of material tax years under examination or still subject to examination by major tax jurisdictions

As of February 28, 2013, tax years under examination or still subject to examination by major tax jurisdictions that are material are as follows:

Jurisdiction	Examinations in Process	Open Years
Mexico	- None -	2007    -    2012
United Kingdom	- None -	2011    -    2013
United States *	2003, 2007, 2008	2003, 2007  -  2013
Switzerland	- None -	2008    -    2013
Hong Kong	- None -	2006    -    2013
France	2007 - 2010	2007    -    2013
Hungary	2005, 2006, 2009	2005    -    2013

* Kaz, Inc. and its U.S. subsidiaries are currently under examination.