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Income Taxes | 12 Months Ended
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Mar. 03, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Earnings before income taxes consisted of the following:
(In thousands) | 2018 |  | 2017 |  | 2016
U.S. | $ | 111,980 |  |  | $ | 123,229 |  |  | $ | 100,859 |
International | (2,100 | ) |  | (424 | ) |  | (3,535 | )
Earnings before income taxes | $ | 109,880 |  |  | $ | 122,805 |  |  | $ | 97,324 |
The components of income tax expense (benefit) for each of the last three fiscal years was:
(In thousands) | 2018 |  | 2017 |  | 2016
Current |  |  |  |  |
Federal | $ | 22,074 |  |  | $ | 35,610 |  |  | $ | 35,888 |
State and local | 3,106 |  |  | 2,929 |  |  | 2,866 |
International | 1,578 |  |  | (147 | ) |  | (636 | )
Total current | 26,758 |  |  | 38,392 |  |  | 38,118 |
Deferred |  |  |  |  |
Federal | 4,049 |  |  | (945 | ) |  | (5,403 | )
State and local | 351 |  |  | (78 | ) |  | (512 | )
International | (1,205 | ) |  | (42 | ) |  | (224 | )
Total deferred | 3,195 |  |  | (1,065 | ) |  | (6,139 | )
Total non-current tax (benefit) expense | 439 |  |  | (312 | ) |  | 3 |
Total income tax expense | $ | 30,392 |  |  | $ | 37,015 |  |  | $ | 31,982 |
Income tax payments, net of refunds, were $25.7 million, $47.8 million and $25.9 million in fiscal 2018, 2017 and 2016, respectively. The following table provides a reconciliation of the statutory federal income tax rate to our consolidated effective tax rates:
| 2018 |  | 2017 |  | 2016
Federal income tax expense at statutory rate | 32.7 | % |  | 35.0 | % |  | 35.0 | %
Tax rate change revaluation | (3.7 | ) |  | — |  |  | — |
Manufacturing deduction | (2.2 | ) |  | (3.3 | ) |  | (3.4 | )
State and local income taxes, net of federal tax benefit | 1.8 |  |  | 1.6 |  |  | 1.6 |
Foreign tax rate differential | (0.7 | ) |  | (1.6 | ) |  | — |
Tax credits - research & development | (0.9 | ) |  | (0.7 | ) |  | (0.8 | )
Other, net | 0.7 |  |  | (0.9 | ) |  | 0.5 |
Income tax expense | 27.7 | % |  | 30.1 | % |  | 32.9 | %
The estimated effective tax rate for fiscal 2018 declined 2.4 percentage points from fiscal 2017 primarily due to the U.S. Tax Cuts and Jobs Act ("the Act"), which was enacted in December 2017. Among other things, the Act reduces the U.S. federal corporate tax rate from 35 percent to 21 percent beginning January 1, 2018, resulting in a blended tax rate for our fiscal 2018. It also requires the revaluation of deferred taxes, which generated a tax benefit in the quarter of $4.1 million. Also in December 2017, the SEC issued Staff Accounting Bulletin (“SAB 118”), which provides guidance on accounting for tax effects of the Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date of the Act for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Act. The FASB provided additional guidance to address the accounting for the effects of the provisions related to the taxation of Global Intangible Low-Taxed Income, or GILTI, noting that companies should make an accounting policy election to recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to include the tax expense in the year it is incurred. We have not completed our analysis of the effects of the GILTI provisions and will further consider the accounting policy election within the measurement period as provided for under SEC Staff Accounting Bulletin 118. In fiscal 2017, we recorded a net tax benefit of $1.9 million on a distribution from our Brazilian operation. Deferred tax assets and deferred tax liabilities at March 3, 2018 and March 4, 2017 were:
(In thousands) | 2018 |  | 2017
Other accruals | 3,428 |  |  | 4,254 |
Deferred compensation | 8,926 |  |  | 15,189 |
Goodwill and other intangibles | (4,655 | ) |  | (7,601 | )
Depreciation | (19,523 | ) |  | (18,714 | )
Liability for unrecognized tax benefits | 2,850 |  |  | 2,623 |
Net operating losses and tax credits | 6,272 |  |  | 5,790 |
Valuation allowance on net operating losses | (4,296 | ) |  | (2,352 | )
Unearned income | 2,628 |  |  | — |
Other | 1,067 |  |  | 811 |
Deferred tax (liabilities) assets | $ | (3,303 | ) |  | $ | — |
The Company has U.S. federal tax credits as well as state net operating loss carryforwards with a tax effect of $6.3 million. A valuation allowance of $4.3 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 2015, or state and local income tax examinations for years prior to fiscal 2010. The Company is not currently under U.S. federal examination for years subsequent to fiscal 2014, 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 U.S. 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 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 U.S. If we were to prevail on all unrecognized tax benefits recorded, $2.4 million, $2.1 million and $2.7 million for fiscal 2018, 2017 and 2016, respectively, would benefit the effective tax rate. Also included in the balance of unrecognized tax benefits for fiscal 2018, 2017 and 2016, are $2.3 million, $2.0 million and $1.8 million, respectively, 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. For fiscal 2018, we accrued penalties and interest related to unrecognized tax benefits of $0.4 million. For fiscal 2017 and 2016, the accrual was $0.4 million and $0.5 million, respectively. The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:
(In thousands) | 2018 |  | 2017 |  | 2016
Gross unrecognized tax benefits at beginning of year | $ | 4,075 |  |  | $ | 4,512 |  |  | $ | 4,491 |
Gross increases in tax positions for prior years | 614 |  |  | 54 |  |  | 60 |
Gross decreases in tax positions for prior years | (122 | ) |  | (233 | ) |  | (158 | )
Gross increases based on tax positions related to the current year | 639 |  |  | 508 |  |  | 526 |
Gross decreases based on tax positions related to the current year | — |  |  | — |  |  | (33 | )
Settlements | — |  |  | (23 | ) |  | — |
Statute of limitations expiration | (519 | ) |  | (743 | ) |  | (374 | )
Revaluation impact | 18 |  |  | — |  |  | — |
Gross unrecognized tax benefits at end of year | $ | 4,705 |  |  | $ | 4,075 |  |  | $ | 4,512 |
The total liability for unrecognized tax benefits is expected to decrease by approximately $0.5 million during fiscal 2019 due to lapsing of statutes.

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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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