XML 72 R22.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Feb. 28, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings before income taxes consisted of the following:
(In thousands) | 2015 |  | 2014 |  | 2013
U.S. | $ | 59,898 |  |  | $ | 36,700 |  |  | $ | 26,699 |
International | 5,101 |  |  | 3,066 |  |  | 208 |
Earnings before income taxes | $ | 64,999 |  |  | $ | 39,766 |  |  | $ | 26,907 |
The components of income tax expense (benefit) for each of the last three fiscal years are as follows:
(In thousands) | 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal | $ | 7,328 |  |  | $ | 15,711 |  |  | $ | 5,036 |
State and local | 1,198 |  |  | 1,440 |  |  | 169 |
International | 1,790 |  |  | 1,437 |  |  | 409 |
Total current | $ | 10,316 |  |  | $ | 18,588 |  |  | $ | 5,614 |
Deferred: |  |  |  |  |
Federal | $ | 4,738 |  |  | $ | (4,549 | ) |  | $ | 2,680 |
State and local | (363 | ) |  | (378 | ) |  | 1,015 |
International | (101 | ) |  | (353 | ) |  | (138 | )
Total deferred | $ | 4,274 |  |  | $ | (5,280 | ) |  | $ | 3,557 |
Total non-current tax benefit | $ | (107 | ) |  | $ | (1,528 | ) |  | $ | (1,375 | )
Total income tax expense | $ | 14,483 |  |  | $ | 11,780 |  |  | $ | 7,796 |
Income tax payments, net of refunds were $11.3 million, $12.9 million and $7.7 million in fiscal 2015, 2014 and 2013, respectively. The differences between the statutory federal income tax rates and consolidated effective tax rates are as follows:
| 2015 |  | 2014 |  | 2013
Federal income tax expense at statutory rates | 35.0% |  | 35.0% |  | 35.0%
State and local income taxes, net of federal tax benefit | 1.2 |  | 0.9 |  | 0.9
Tax credits - research & development | (1.1) |  | (1.6) |  | (2.5)
Tax credits - 48C | (9.9) |  | — |  | —
Tax credits - other | (0.1) |  | (0.2) |  | (0.4)
Manufacturing deduction | (2.3) |  | (3.5) |  | (2.0)
Meals and entertainment | 0.4 |  | 0.6 |  | 0.9
Permanent tax adjustment for officers compensation | 0.1 |  | 0.1 |  | —
Nondeductible acquisition costs | — |  | 0.3 |  | —
Tax-exempt interest | — |  | (0.2) |  | (0.4)
Tax reserve adjustments - statute expirations and benefits recognized | (0.2) |  | (2.2) |  | (3.0)
Change in valuation allowance | 0.1 |  | 0.4 |  | 0.8
Other, net | (0.9) |  | — |  | —
Income tax expense | 22.3% |  | 29.6% |  | 29.3%
The Company recognized approximately $6.4 million of tax benefit from an energy-efficiency investment credit under Section 48C of the U.S. Internal Revenue Code, upon successful start-up and commercial production of coatings on our new architectural glass coater. The tax credit was awarded in 2011 by the U.S. Internal Revenue Service (IRS) in cooperation with the Department of Energy as part of the American Reinvestment and Recovery Act to incent energy-efficient investments throughout the United States. In fiscal 2015, 2014 and 2013, there were tax benefits associated with stock-based incentive plans of $3.3 million, $2.6 million and $0.4 million, respectively. These benefits impacted additional paid-in capital directly and were not reflected in the determination of income tax expense or benefit. Deferred tax assets and deferred tax liabilities at February 28, 2015 and March 1, 2014 are as follows:
| 2015 |  | 2014
(In thousands) | Current |  | Noncurrent |  | Current |  | Noncurrent
Accounts receivable | $ | 1,022 |  |  | $ | — |  |  | $ | 900 |  |  | $ | — |
Accrued insurance | 46 |  |  | 254 |  |  | 113 |  |  | 574 |
Other accruals | 2,826 |  |  | 958 |  |  | 2,680 |  |  | 792 |
Deferred compensation | 419 |  |  | 11,250 |  |  | (1 | ) |  | 9,323 |
Goodwill and other intangibles | 21 |  |  | (7,994 | ) |  | 23 |  |  | (8,624 | )
Inventory | 90 |  |  | (585 | ) |  | 720 |  |  | (1,164 | )
Depreciation | (853 | ) |  | (20,544 | ) |  | (853 | ) |  | (14,413 | )
Liability for unrecognized tax benefits | — |  |  | 2,784 |  |  | — |  |  | 2,781 |
Prepaid expenses | (731 | ) |  | 864 |  |  | (634 | ) |  | 595 |
Net operating losses | — |  |  | 3,084 |  |  | — |  |  | 3,566 |
Valuation allowance on net operating losses | (2,149 | ) |  | (442 | ) |  | (459 | ) |  | (2,312 | )
Other | 668 |  |  | (281 | ) |  | 225 |  |  | 315 |
Deferred tax assets (liabilities) | $ | 1,359 |  |  | $ | (10,652 | ) |  | $ | 2,714 |  |  | $ | (8,567 | )
The Company has state net operating loss carryforwards with a tax effect of $3.6 million. A valuation allowance of $2.6 million has been established for these net operating loss carryforwards due to the uncertainty of the use of the tax benefits in future periods. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, Canada, Brazil and other international jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years prior to fiscal 2012, or state and local income tax examinations for years prior to fiscal 2008. The Company is not currently under U.S. federal examination for years subsequent to fiscal year 2011, and there is very limited audit activity of the Company’s income tax returns in U.S. state jurisdictions or international jurisdictions. The Company considers the earnings of its non-U.S. subsidiaries to be indefinitely invested outside of the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and specific plans for reinvestment of those subsidiary earnings. Should the Company decide to repatriate the foreign earnings, it would need to adjust the income tax provision in the period it was determined that the earnings will no longer be indefinitely invested outside the United States. The total liability for unrecognized tax benefits for fiscal 2015, 2014 and 2013, respectively, is $5.0 million, $5.2 million and $6.8 million. Included in this total liability for each of fiscal 2015 and 2014 are $2.6 million and $3.3 million for fiscal 2013, of tax benefits that, if recognized, would decrease the effective tax rate. Also included in the balance of unrecognized tax benefits for fiscal 2015, 2014 and 2013 are $1.9 million, $1.8 million and $2.2 million of tax benefits that, if recognized, would result in adjustments to deferred taxes. Penalties and interest related to unrecognized tax benefits are recorded in income tax expense, which is consistent with past practices. Related to the unrecognized tax benefits noted above, the Company reduced the accrual for penalties and interest by $0.3 million during fiscal 2015, resulting in a reserve for interest and penalties of $0.5 million at the end of fiscal 2015. During fiscal 2014, the Company reduced the accrual for penalties and interest by $0.5 million, resulting in a reserve for interest and penalties at the end of fiscal 2014 of $0.8 million. During fiscal 2013, the Company reduced the accrual for penalties and interest by $0.5 million, resulting in a reserve for interest and penalties at the end of fiscal 2013 of $1.3 million. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
(In thousands) | 2015 |  | 2014 |  | 2013
Gross unrecognized tax benefits at beginning of year | $ | 4,431 |  |  | $ | 5,516 |  |  | $ | 7,125 |
Gross increases in tax positions for prior years | 261 |  |  | 44 |  |  | 236 |
Gross decreases in tax positions for prior years | (276 | ) |  | (616 | ) |  | (1,480 | )
Gross increases based on tax positions related to the current year | 508 |  |  | 326 |  |  | 621 |
Gross decreases based on tax positions related to the current year | (21 | ) |  | (40 | ) |  | (56 | )
Settlements | (93 | ) |  | (84 | ) |  | (682 | )
Statute of limitations expiration | (319 | ) |  | (809 | ) |  | (248 | )
Unrecognized tax benefits acquired in connection with Alumicor | — |  |  | 94 |  |  | — |
Gross unrecognized tax benefits at end of year | $ | 4,491 |  |  | $ | 4,431 |  |  | $ | 5,516 |
The total liability for unrecognized tax benefits is expected to decrease by approximately $0.7 million during fiscal 2016 due to audit settlements and lapsing of statutes. In September 2013, the U.S. Department of the Treasury and the IRS issued final regulations addressing the acquisition, production and improvement of tangible property, and also proposed regulations addressing the disposition of property. These regulations replace previously issued temporary regulations and are effective for tax years beginning on or after January 1, 2014. The adoption of the new regulations did not have a material impact on the Company’s consolidated financial statements.

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration