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Income Taxes (Notes) | 12 Months Ended
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Feb. 28, 2018
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes The provision for income taxes consists of (in thousands):
|  | Year Ended
|  | February 28, 2018 |  | February 28, 2017 |  | February 29, 2016
Income before income taxes: |  |  |  |  |
Domestic | $ | 24,282 |  |  | $ | 74,972 |  |  | $ | 93,561 |
Foreign | 6,617 |  |  | 10,325 |  |  | 8,814 |
Income before income taxes | $ | 30,899 |  |  | $ | 85,297 |  |  | $ | 102,375 |
Current provision (benefit): |  |  |  |  |
| Federal | $ | 9,080 |  |  | $ | 23,282 |  |  | $ | 28,099 |
| Foreign | 1,958 |  |  | 2,751 |  |  | 2,706 |
| State and local | 964 |  |  | (696 | ) |  | (337 | )
Total current provision for income taxes | $ | 12,002 |  |  | $ | 25,337 |  |  | $ | 30,468 |
Deferred provision (benefit): |  |  |  |  |
| Federal | $ | (25,855 | ) |  | $ | (2,486 | ) |  | $ | (6,560 | )
| Foreign | 100 |  |  | 189 |  |  | (123 | )
| State and local | (517 | ) |  | 993 |  |  | 3,046 |
Total deferred provision for (benefit from) income taxes | $ | (26,272 | ) |  | $ | (1,304 | ) |  | $ | (3,637 | )
Total provision for (benefit from) income taxes | $ | (14,270 | ) |  | $ | 24,033 |  |  | $ | 26,831 |
In general, it is the Company's practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of fiscal year end 2018, other than for the one-time mandatory repatriation transition tax charge, the Company has not made a provision for U.S. or additional foreign withholding taxes on approximately $14.5 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 foreign withholding tax upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of withholding tax liability related to investments in these foreign subsidiaries. In December 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law revising the U.S. corporate income tax. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the elimination of certain deductions and imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries. The Act also includes international provisions, which generally establish a territorial-style system for taxing foreign source income of domestic multinational corporations. The primary impacts of the Act reflected in the consolidated financial statements relate to the remeasurement of deferred tax liabilities resulting from the change in the corporate tax rate and a one-time mandatory transition tax on undistributed earnings of foreign affiliates. The Company recorded a net $23.2 million provisional reduction in tax expense related to the Act in the fourth quarter of fiscal year 2018, the period in which the legislation was enacted. The provisional benefit recognized related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to realize was $25.0 million. The provisional expense recognized related to the one-time tax on the mandatory deemed repatriation of foreign earnings was $1.8 million of which the Company will elect to pay the one-time tax over a period of eight years. Additional analysis of historical foreign earnings is necessary to finalize the tax impact of the Act and any subsequent adjustment to these amounts will be recorded as current tax expense in the quarter of fiscal year 2019 in which the analysis is complete. We continue to reinvest cash in foreign jurisdictions and have not recorded the effects of any applicable foreign withholding tax. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"), which allows the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the Act was passed in the fourth quarter of the Company’s fiscal year 2018, and ongoing guidance and accounting interpretation are expected over the next 12 months, the Company considers the accounting of the deferred tax remeasurements, the one-time mandatory transition tax and other items to be incomplete due to the forthcoming guidance and our ongoing analysis of final year-end data and tax positions. The Company expects to complete its analysis within the measurement period in accordance with SAB 118. A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows:
|  | Year Ended
|  | February 28, 2018 |  | February 28, 2017 |  | February 29, 2016
Statutory federal income tax rate |  | 32.7 | % |  | 35.0 | % |  | 35.0 | %
Permanent differences |  | 1.6 |  |  | 0.7 |  |  | 0.4 |
State income taxes, net of federal income tax benefit |  | 0.4 |  |  | 0.4 |  |  | (1.5 | )
Benefit of Section 199 of the Code, manufacturing deduction |  | (2.2 | ) |  | (2.3 | ) |  | (2.7 | )
Valuation allowance |  | — |  |  | — |  |  | (1.2 | )
Stock compensation |  | (0.5 | ) |  | (1.8 | ) |  | — |
Tax credits |  | (7.7 | ) |  | (3.1 | ) |  | (3.2 | )
Foreign tax rate differential |  | (0.4 | ) |  | (0.8 | ) |  | (0.4 | )
Deferred tax remeasurements |  | (78.9 | ) |  | — |  |  | — |
Transition tax |  | 8.6 |  |  | — |  |  | — |
Other |  | 0.2 |  |  | 0.1 |  |  | (0.2 | )
Effective income tax rate |  | (46.2 | )% |  | 28.2 | % |  | 26.2 | %
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 (in thousands):
|  | February 28, 2018 |  | February 28, 2017
Deferred income tax assets: |  |  |  |
Employee related items |  | $ | 4,532 |  |  | $ | 6,839 |
Inventories |  | 816 |  |  | 1,286 |
Accrued warranty |  | 432 |  |  | 715 |
Accounts receivable |  | 299 |  |  | 261 |
Net operating loss carry forward |  | 5,067 |  |  | 4,011 |
|  | 11,146 |  |  | 13,112 |
Less: valuation allowance |  | (1,558 | ) |  | (648 | )
Total deferred income tax assets |  | 9,588 |  |  | 12,464 |
Deferred income tax liabilities: |  |  |  |
Depreciation methods and property basis differences |  | (17,955 | ) |  | (27,913 | )
Other assets and tax-deductible goodwill |  | (24,537 | ) |  | (37,950 | )
Total deferred income tax liabilities |  | (42,492 | ) |  | (65,863 | )
Net deferred income tax liabilities |  | $ | (32,904 | ) |  | $ | (53,399 | )
The following table summarizes the Net operating loss (NOL) carryforward (in thousands):
|  | February 28, 2018 |  | February 28, 2017
Federal |  | $ | — |  |  | $ | — |
State |  | $ | 5,067 |  |  | $ | 4,011 |
Foreign |  | $ | — |  |  | $ | — |
As of February 28, 2018, the Company had pretax state NOL carryforwards of $57.6 million which, if unused, will begin to expire in 2025. As of fiscal year end 2018 and 2017, a portion of the Company's deferred tax assets were the result of state NOL carryforwards. The Company believes 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, the Company has provided a valuation allowance of $1.6 million and $0.6 million as of fiscal year end 2018 and 2017, respectively.

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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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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