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Income Taxes (Notes) | 12 Months Ended
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Feb. 28, 2019
Income Tax Disclosure [Abstract] |
Income taxes | Income Taxes The provision for income taxes consists of (in thousands):
|  | Year Ended
|  | February 28, 2019 |  | February 28, 2018 |  | February 28, 2017
Income before income taxes: |  |  |  |  |
Domestic | $ | 48,261 |  |  | $ | 24,282 |  |  | $ | 74,972 |
Foreign | 14,744 |  |  | 6,617 |  |  | 10,325 |
Income before income taxes | $ | 63,005 |  |  | $ | 30,899 |  |  | $ | 85,297 |
Current provision (benefit): |  |  |  |  |
| Federal | $ | 4,251 |  |  | $ | 3,445 |  |  | $ | 18,688 |
| Foreign | 2,829 |  |  | 1,958 |  |  | 2,751 |
| State and local | 986 |  |  | 964 |  |  | 1,290 |
Total current provision for income taxes | $ | 8,066 |  |  | $ | 6,367 |  |  | $ | 22,729 |
Deferred provision (benefit): |  |  |  |  |
| Federal | $ | 2,970 |  |  | $ | (20,220 | ) |  | $ | 2,486 |
| Foreign | 539 |  |  | 100 |  |  | (189 | )
| State and local | 222 |  |  | (517 | ) |  | (993 | )
Total deferred provision for (benefit from) income taxes | $ | 3,731 |  |  | $ | (20,637 | ) |  | $ | 1,304 |
Total provision for (benefit from) income taxes | $ | 11,797 |  |  | $ | (14,270 | ) |  | $ | 24,033 |
In general, it is the Company's practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. Generally, such amounts become subject to foreign withholding tax upon the remittance of dividends and under certain other circumstances. The expense recognized in fiscal year 2018 related to the one-time tax on the mandatory deemed repatriation of foreign earnings was $1.4 million of which the Company has elected to pay the one-time tax evenly over a period of eight years with seven years remaining. We continue to reinvest cash in foreign jurisdictions and have not recorded the effects of any applicable foreign withholding tax. The U.S. Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Act”) requires complex computations to be performed that were not previously required by U.S. tax law, significant judgments to be made in interpretation of the provisions of the U.S. Tax Act, significant estimates in calculations, and the preparation and analysis of information not previously relevant. The U.S. Treasury Department, the IRS, and other standard-setting bodies will continue to interpret or issue guidance on how provisions of the U.S. Tax Act will be applied or otherwise administered. As future guidance is issued, we may make adjustments to amounts that we have previously recorded that may materially impact our financial statements in the period in which the adjustments are made. During the fourth quarter of fiscal 2019, the Company completed its assessment of the Tax Act under SAB 118, resulting in additional benefit of $1.1 million resulting from revised estimates of the mandatory deemed repatriation of foreign earnings, foreign tax credits, and bonus depreciation elections based on the finalization of our 2017 US federal income tax return. The change in bonus depreciation elections and other temporary return to provisions items resulted in $0.8 million benefit related to the finalization of the remeasurement of deferred tax assets and liabilities. The finalization of foreign earnings and profits and foreign tax credits resulted in a $0.3 million benefit. A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows:
|  | Year Ended
|  | February 28, 2019 |  | February 28, 2018 |  | February 28, 2017
Statutory federal income tax rate |  | 21.0 | % |  | 32.7 | % |  | 35.0 | %
Permanent differences |  | 0.5 |  |  | 1.6 |  |  | 0.7 |
State income taxes, net of federal income tax benefit |  | 0.4 |  |  | 0.4 |  |  | 0.4 |
Benefit of Section 199 of the Code, manufacturing deduction |  | — |  |  | (2.2 | ) |  | (2.3 | )
Valuation allowance |  | (0.7 | ) |  | — |  |  | — |
Stock compensation |  | 0.5 |  |  | (0.5 | ) |  | (1.8 | )
Tax credits |  | (4.1 | ) |  | (7.7 | ) |  | (3.1 | )
Foreign tax rate differential |  | 1.1 |  |  | (0.4 | ) |  | (0.8 | )
Deferred tax remeasurements |  | — |  |  | (78.9 | ) |  | — |
Transition tax |  | — |  |  | 8.6 |  |  | — |
Other |  | — |  |  | 0.2 |  |  | 0.1 |
Effective income tax rate |  | 18.7 | % |  | (46.2 | )% |  | 28.2 | %
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, 2019 |  | February 28, 2018
Deferred income tax assets: |  |  |  |
Employee related items |  | $ | 4,177 |  |  | $ | 4,532 |
Inventories |  | 758 |  |  | 816 |
Accrued warranty |  | 369 |  |  | 432 |
Accounts receivable |  | (2,092 | ) |  | 299 |
Net operating loss carry forward |  | 7,173 |  |  | 5,067 |
|  | 10,385 |  |  | 11,146 |
Less: valuation allowance |  | (3,015 | ) |  | (1,558 | )
Total deferred income tax assets |  | 7,370 |  |  | 9,588 |
Deferred income tax liabilities: |  |  |  |
Depreciation methods and property basis differences |  | (19,066 | ) |  | (17,955 | )
Other assets and tax-deductible goodwill |  | (24,927 | ) |  | (24,537 | )
Total deferred income tax liabilities |  | (43,993 | ) |  | (42,492 | )
Net deferred income tax liabilities |  | $ | (36,623 | ) |  | $ | (32,904 | )
The following table summarizes the Net operating loss (NOL) carryforward (in thousands):
|  | February 28, 2019 |  | February 28, 2018
Federal |  | $ | — |  |  | $ | — |
State |  | $ | 6,352 |  |  | $ | 5,067 |
Foreign |  | $ | 821 |  |  | $ | — |
As of February 28, 2019, the Company had pretax state NOL carry-forwards of $97.7 million which, if unused, will begin to expire in 2025. As of fiscal year end 2019 and 2018, a portion of the Company's deferred tax assets were the result of state and foreign jurisdiction NOL carry-forwards. 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 $3.0 million and $1.6 million as of fiscal year end 2019 and 2018, 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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