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Income Taxes (Notes) | 12 Months Ended
--- | ---
Feb. 28, 2017
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes The provision for income taxes consists of:
|  | 2017 | 2016 | 2015
|  | (Restated) | (Restated) | (Restated)
|  | (in thousands)
Income before income taxes: |
Domestic | $ | 74,972 |  | $ | 93,561 |  | $ | 77,511 |
Foreign | 10,325 |  | 8,814 |  | 13,696 |
Income before income taxes | $ | 85,297 |  | $ | 102,375 |  | $ | 91,207 |
Current provision (benefit): |  |  |
| Federal | $ | 23,282 |  | $ | 28,099 |  | $ | 3,770 |
| Foreign | 2,751 |  | 2,706 |  | 3,025 |
| State and Local | (696 | ) | (337 | ) | 2,575 |
Total current provision for income taxes | $ | 25,337 |  | $ | 30,468 |  | $ | 9,370 |
Deferred provision (benefit): |  |  |
| Federal | $ | (2,486 | ) | $ | (6,560 | ) | $ | 15,859 |
| Foreign | 189 |  | (123 | ) | (858 | )
| State and Local | 993 |  | 3,046 |  | 1,220 |
Total deferred provision (benefit) for income taxes | $ | (1,304 | ) | $ | (3,637 | ) | $ | 16,221 |
Total provision for income taxes | $ | 24,033 |  | $ | 26,831 |  | $ | 25,591 |
A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows:
|  | 2017 |  | 2016 |  | 2015
|  | (Restated) |  | (Restated) |  | (Restated)
Statutory federal income tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Permanent differences |  | 0.7 |  |  | 0.4 |  |  | 0.6 |
State income taxes, net of federal income tax benefit |  | 0.4 |  |  | (1.5 | ) |  | 2.7 |
Benefit of Section 199 of the Code, manufacturing deduction |  | (2.3 | ) |  | (2.7 | ) |  | (2.4 | )
Valuation allowance |  | — |  |  | (1.2 | ) |  | (3.4 | )
Stock compensation |  | (1.8 | ) |  | — |  |  | — |
Tax credits |  | (3.1 | ) |  | (3.2 | ) |  | (3.4 | )
Foreign tax rate differential |  | (0.8 | ) |  | (0.4 | ) |  | (0.7 | )
Other |  | 0.1 |  |  | (0.2 | ) |  | (0.3 | )
Effective income tax rate |  | 28.2 | % |  | 26.2 | % |  | 28.1 | %
Deferred federal and state income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial accounting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax liability are as follows:
|  | 2017 |  | 2016
|  | (Restated) |  | (Restated)
|  | (In thousands)
Deferred income tax assets: |  |  |  |
Employee related items |  | $ | 6,839 |  |  | $ | 5,652 |
Inventories |  | 1,286 |  |  | 1,106 |
Accrued warranty |  | 715 |  |  | 1,008 |
Accounts receivable |  | 261 |  |  | 173 |
Net operating loss carry forward |  | 4,011 |  |  | 2,903 |
|  | 13,112 |  |  | 10,842 |
Less: valuation allowance |  | (648 | ) |  | (648 | )
Total deferred income tax assets |  | 12,464 |  |  | 10,194 |
Deferred income tax liabilities: |  |  |  |
Depreciation methods and property basis differences |  | (27,913 | ) |  | (31,008 | )
Other assets and tax-deductible goodwill |  | (37,950 | ) |  | (30,839 | )
Total deferred income tax liabilities |  | (65,863 | ) |  | (61,847 | )
Net deferred income tax liabilities |  | $ | (53,399 | ) |  | $ | (51,653 | )
In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. As of fiscal year end 2017, we have not made a provision for U.S. or additional foreign withholding taxes on approximately $24.8 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. The following table summarizes the Net Operating Loss (NOL) Carryforward:
|  | 2017 |  | 2016
|  | (In thousands)
Federal |  | $ | — |  |  | $ | — |
State |  | $ | 4,011 |  |  | $ | 2,903 |
Foreign |  | $ | — |  |  | $ | — |
As of February 28, 2017, the Company had pretax state NOL carryforwards of $55.5 million which, if unused, will begin to expire in 2025. As of fiscal year end 2017 and 2016, a portion of our deferred tax assets were the result of state NOL carryforwards. We believe that it is more likely than not that the benefit from certain state NOL carry forwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $0.6 million and $0.6 million as of fiscal year end 2017 and 2016, respectively. We will review this risk within the next fiscal year and may conclude that a significant portion of the valuation allowance will no longer be needed. The tax benefits related to any reversal of the valuation allowance will be recognized as a reduction of income tax expense.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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