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v3.23.1

Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Feb. 28, 2023
Accounting Policies [Abstract] |
Financing Receivable, Allowance for Credit Loss | The following table shows the changes in the allowance for credit losses for fiscal 2023, 2022 and 2021 (in thousands):
|  | 2023 |  | 2022 |  | 2021
Balance at beginning of year |  | $ | 5,395 |  |  | $ | 5,378 |  |  | $ | 5,551 |
Adjustment based on aged receivables analysis |  | (58) |  |  | 100 |  |  | 207 |
Charge-offs, net of recoveries |  | 83 |  |  | (85) |  |  | (572) |
Other |  | 327 |  |  | — |  |  | 116 |
Effect of exchange rate changes |  | 5 |  |  | 2 |  |  | 76 |
Balance at end of year(1) |  | $ | 5,752 |  |  | $ | 5,395 |  |  | $ | 5,378 |
(1) For fiscal 2023, 2022 and 2021, the allowance for credit losses includes $5.4 million of reserves related to the AZZ Infrastructure Solutions segment that were retained following the AIS divestiture.
Disaggregation of Revenue | Disaggregated Revenue Revenue by segment and geography is disclosed in Note 14. In addition, the following table presents disaggregated revenue, from continuing operations, by customer industry for fiscal years 2023, 2022 and 2021 (in thousands):
|  | 2023 |  | 2022 |  | 2021
Sales: |  |  |  |  |  |
Construction |  | $ | 667,852 |  |  | $ | 119,294 |  |  | $ | 106,166 |
Industrial |  | 152,731 |  |  | 113,561 |  |  | 128,886 |
Consumer |  | 105,587 |  |  | — |  |  | — |
Transportation |  | 135,319 |  |  | 98,106 |  |  | 87,562 |
Electrical/Utility |  | 94,188 |  |  | 71,073 |  |  | 69,151 |
Other (1) |  | 167,972 |  |  | 123,564 |  |  | 88,809 |
Total sales |  | $ | 1,323,649 |  |  | $ | 525,598 |  |  | $ | 480,574 |
(1) Other includes less significant markets, such as agriculture, recreation, petro-chem, AZZ Tubular products and sales from recycling and other.
Schedule of Other Significant Noncash Transactions | The Company recorded the following supplemental cash flow disclosures for fiscal 2023, 2022 and 2021 (in thousands):
|  | 2023 |  | 2022 |  | 2021
Cash paid for interest |  | $ | 77,989 |  |  | $ | 6,062 |  |  | $ | 8,999 |
Cash paid for income taxes |  | 24,489 |  |  | 31,660 |  |  | 16,118 |
Non-cash investing and financing activities: |  |  |  |  |  |
Issuance of preferred stock in exchange for convertible notes |  | 233,722 |  |  | — |  |  | — |
Accrued dividends on Series A Preferred Stock |  | 2,400 |  |  | — |  |  | — |
Accruals for capital expenditures |  | 1,748 |  |  | 864 |  |  | 1,446 |
Property, Plant and Equipment | Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows:
Buildings and structures | 10-27 years
Machinery and equipment | 3-15 years
Furniture and fixtures | 3-15 years
Automotive equipment | 3-5 years
Computers and software | 3-7 years
Property, plant and equipment consisted of the following as of February 28, 2023 and February 28, 2022 (in thousands):
|  | As of February 28,
|  | 2023 |  | 2022
Land |  | $ | 52,322 |  |  | $ | 21,831 |
Building and structures |  | 291,254 |  |  | 154,982 |
Machinery and equipment |  | 391,786 |  |  | 225,824 |
Furniture, fixtures, software and computers |  | 28,906 |  |  | 29,824 |
Automotive equipment |  | 2,757 |  |  | 3,807 |
Construction in progress |  | 24,681 |  |  | 8,545 |
|  | 791,706 |  |  | 444,813 |
Less accumulated depreciation |  | (293,203) |  |  | (251,455) |
Property, plant, and equipment, net |  | $ | 498,503 |  |  | $ | 193,358 |
The following table outlines the classification of depreciation expense from continuing operations in the consolidated statements of income for fiscal 2023, 2022, and 2021 (in thousands):
|  | Year Ended February 28,
|  | 2023 |  | 2022 |  | 2021
Cost of sales |  | $ | 49,413 |  |  | $ | 23,795 |  |  | $ | 23,619 |
Selling, general and administrative |  | 2,564 |  |  | 1,628 |  |  | 1,694 |
Total depreciation expense |  | $ | 51,977 |  |  | $ | 25,423 |  |  | $ | 25,313 |

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