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v3.23.1

Income Taxes (Tables) | 12 Months Ended
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Feb. 25, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Earnings before income taxes consisted of the following:
(In thousands) |  | 2023 |  | 2022 |  | 2021
United States |  | $ | 126,859 |  |  | $ | 70,039 |  |  | $ | 45,651 |
International |  | (10,238) |  |  | (56,170) |  |  | (23,040) |
Earnings before income taxes |  | $ | 116,621 |  |  | $ | 13,869 |  |  | $ | 22,611 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for each of the last three fiscal years are as follows:
(In thousands) |  | 2023 |  | 2022 |  | 2021
Current |  |  |  |  |  |
Federal |  | $ | 9,621 |  |  | $ | 13,806 |  |  | $ | 11,495 |
State and local |  | 7,670 |  |  | 4,823 |  |  | 702 |
International |  | 231 |  |  | 39 |  |  | 1,642 |
Total current |  | 17,522 |  |  | 18,668 |  |  | 13,839 |
Deferred |  |  |  |  |  |
Federal |  | (5,120) |  |  | (1,528) |  |  | (2,860) |
State and local |  | (2,487) |  |  | (4,270) |  |  | 538 |
International |  | 422 |  |  | (2,158) |  |  | (4,138) |
Total deferred |  | (7,185) |  |  | (7,956) |  |  | (6,460) |
Total non-current tax (benefit) expense |  | 2,177 |  |  | (329) |  |  | (204) |
Total income tax expense |  | $ | 12,514 |  |  | $ | 10,383 |  |  | $ | 7,175 |
Schedule of Effective Income Tax Rate Reconciliation | The following table provides a reconciliation of the statutory federal income tax rate to our consolidated effective tax rates:
|  | 2023 |  | 2022 |  | 2021
Statutory federal income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal tax benefit |  | 3.5 |  |  | 16.4 |  |  | (2.5) |
Foreign tax rate differential |  | (0.2) |  |  | (15.4) |  |  | (3.4) |
Nondeductible goodwill impairment expense |  | — |  |  | — |  |  | 5.6 |
Valuation allowance |  | (4.7) |  |  | 63.2 |  |  | 11.4 |
Nontaxable gain (loss) on life insurance policies |  | 0.2 |  |  | 1.2 |  |  | (1.8) |
Deduction for foreign derived intangible income |  | (0.2) |  |  | (2.6) |  |  | (0.8) |
Research & development tax credit |  | (1.5) |  |  | (9.4) |  |  | (5.3) |
§162(m) Executive Compensation Limitation |  | 0.8 |  |  | 3.5 |  |  | 3.6 |
Tax benefit of share based awards |  | (0.8) |  |  | (5.2) |  |  | 0.2 |
Worthless stock deduction |  | (6.0) |  |  | — |  |  | — |
Other, net |  | (1.4) |  |  | 2.2 |  |  | 3.7 |
Consolidated effective income tax rate |  | 10.7 | % |  | 74.9 | % |  | 31.7 | %
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and deferred tax liabilities at February 25, 2023 and February 26, 2022 were:
(In thousands) |  | 2023 |  | 2022
Deferred tax assets |  |  |  |
Accrued expenses |  | $ | 1,862 |  |  | $ | 3,515 |
Deferred compensation |  | 9,666 |  |  | 8,602 |
Section 174 capitalized costs |  | 12,222 |  |  | — |
Goodwill and other intangibles |  | 4,316 |  |  | 13,237 |
Liability for unrecognized tax benefits |  | 1,884 |  |  | 1,965 |
Unearned income |  | 11,007 |  |  | 9,802 |
Operating lease liabilities |  | 13,639 |  |  | 13,769 |
(In thousands) |  | 2023 |  | 2022
Net operating losses and tax credits |  | 11,459 |  |  | 8,580 |
Other |  | 3,656 |  |  | 4,986 |
Total deferred tax assets |  | 69,711 |  |  | 64,456 |
Less: valuation allowance |  | (9,048) |  |  | (15,370) |
Deferred tax assets, net of valuation allowance |  | 60,663 |  |  | 49,086 |
Deferred tax liabilities |  |  |  |
Depreciation |  | 21,965 |  |  | 26,095 |
Operating lease, right-of-use assets |  | 12,660 |  |  | 12,768 |
Bad debt |  | 8,262 |  |  | — |
Prepaid expenses |  | 2,467 |  |  | 3,015 |
Other |  | 3,546 |  |  | 3,074 |
Total deferred tax liabilities |  | 48,900 |  |  | 44,952 |
Net deferred tax assets (liabilities) |  | $ | 11,763 |  |  | $ | 4,134 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:
(In thousands) |  | 2023 |  | 2022 |  | 2021
Gross unrecognized tax benefits at beginning of year |  | $ | 3,321 |  |  | $ | 3,755 |  |  | $ | 4,071 |
Gross increases in tax positions for prior years |  | 2,298 |  |  | 108 |  |  | 106 |
Gross decreases in tax positions for prior years |  | (255) |  |  | (145) |  |  | (351) |
Gross increases based on tax positions related to the current year |  | 291 |  |  | 420 |  |  | 429 |
Gross decreases based on tax positions related to the current year |  | (27) |  |  | — |  |  | — |
Settlements |  | — |  |  | (147) |  |  | (96) |
Statute of limitations expiration |  | (316) |  |  | (670) |  |  | (404) |
Gross unrecognized tax benefits at end of year |  | $ | 5,312 |  |  | $ | 3,321 |  |  | $ | 3,755 |

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