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Income Taxes (Tables) | 12 Months Ended
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Mar. 02, 2024
Income Tax Disclosure [Abstract] |
Earnings before income taxes | Earnings before income taxes consisted of the following:
(In thousands) |  | 2024 |  | 2023 |  | 2022
United States |  | $ | 133,185 |  |  | $ | 126,859 |  |  | $ | 70,039 |
International |  | (3,932) |  |  | (10,238) |  |  | (56,170) |
Earnings before income taxes |  | $ | 129,253 |  |  | $ | 116,621 |  |  | $ | 13,869 |
Components of income tax expense | The components of income tax expense for each of the last three fiscal years are as follows:
(In thousands) |  | 2024 |  | 2023 |  | 2022
Current |  |  |  |  |  |
Federal |  | $ | 32,900 |  |  | $ | 9,621 |  |  | $ | 13,806 |
State and local |  | 6,172 |  |  | 7,670 |  |  | 4,823 |
International |  | 286 |  |  | 231 |  |  | 39 |
Total current |  | 39,358 |  |  | 17,522 |  |  | 18,668 |
Deferred |  |  |  |  |  |
Federal |  | (8,361) |  |  | (5,120) |  |  | (1,528) |
State and local |  | (1,387) |  |  | (2,487) |  |  | (4,270) |
International |  | — |  |  | 422 |  |  | (2,158) |
Total deferred |  | (9,748) |  |  | (7,185) |  |  | (7,956) |
Total non-current tax (benefit) expense |  | 30 |  |  | 2,177 |  |  | (329) |
Total income tax expense |  | $ | 29,640 |  |  | $ | 12,514 |  |  | $ | 10,383 |
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:
|  | 2024 |  | 2023 |  | 2022
Statutory federal income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal tax benefit |  | 2.4 |  |  | 3.5 |  |  | 16.4 |
Foreign tax rate differential |  | (0.2) |  |  | (0.2) |  |  | (15.4) |
Valuation allowance |  | 1.0 |  |  | (4.7) |  |  | 63.2 |
Nontaxable gain (loss) on life insurance policies |  | — |  |  | 0.2 |  |  | 1.2 |
Deduction for foreign derived intangible income |  | (0.3) |  |  | (0.2) |  |  | (2.6) |
Research & development tax credit |  | (1.3) |  |  | (1.5) |  |  | (9.4) |
§162(m) Executive Compensation Limitation |  | 0.8 |  |  | 0.8 |  |  | 3.5 |
Tax benefit of share based awards |  | (0.6) |  |  | (0.8) |  |  | (5.2) |
Worthless stock deduction |  | — |  |  | (6.0) |  |  | — |
Other, net |  | 0.1 |  |  | (1.4) |  |  | 2.2 |
Consolidated effective income tax rate |  | 22.9 | % |  | 10.7 | % |  | 74.9 | %
Deferred tax assets and deferred tax liabilities | Deferred tax assets and deferred tax liabilities at March 2, 2024 and February 25, 2023 were:
(In thousands) |  | 2024 |  | 2023
Deferred tax assets |  |  |  |
Accrued expenses |  | $ | 4,565 |  |  | $ | 1,862 |
Deferred compensation |  | 11,138 |  |  | 9,666 |
Section 174 capitalized costs |  | 12,450 |  |  | 12,222 |
Goodwill and other intangibles |  | 2,342 |  |  | 4,316 |
Liability for unrecognized tax benefits |  | 2,122 |  |  | 1,884 |
Unearned income |  | 7,467 |  |  | 11,007 |
Operating lease liabilities |  | 13,064 |  |  | 13,639 |
Net operating losses and tax credits |  | 12,332 |  |  | 11,459 |
Other |  | 4,773 |  |  | 3,656 |
Total deferred tax assets |  | 70,253 |  |  | 69,711 |
Less: valuation allowance |  | (10,803) |  |  | (9,048) |
Deferred tax assets, net of valuation allowance |  | 59,450 |  |  | 60,663 |
Deferred tax liabilities |  |  |  |
Depreciation |  | 20,510 |  |  | 21,965 |
Operating lease, right-of-use assets |  | 11,955 |  |  | 12,660 |
Bad debt |  | 8,291 |  |  | 8,262 |
Prepaid expenses |  | 2,131 |  |  | 2,467 |
Other |  | 2,520 |  |  | 3,546 |
Total deferred tax liabilities |  | 45,407 |  |  | 48,900 |
Net deferred tax assets (liabilities) |  | $ | 14,043 |  |  | $ | 11,763 |
Unrecognized tax benefits | The following table provides a reconciliation of the total amounts of gross unrecognized tax benefits:
(In thousands) |  | 2024 |  | 2023 |  | 2022
Gross unrecognized tax benefits at beginning of year |  | $ | 5,312 |  |  | $ | 3,321 |  |  | $ | 3,755 |
Gross increases in tax positions for prior years |  | 91 |  |  | 2,298 |  |  | 108 |
Gross decreases in tax positions for prior years |  | (65) |  |  | (255) |  |  | (145) |
Gross increases based on tax positions related to the current year |  | 579 |  |  | 291 |  |  | 420 |
Gross decreases based on tax positions related to the current year |  | — |  |  | (27) |  |  | — |
Settlements |  | (354) |  |  | — |  |  | (147) |
Statute of limitations expiration |  | (510) |  |  | (316) |  |  | (670) |
Gross unrecognized tax benefits at end of year |  | $ | 5,053 |  |  | $ | 5,312 |  |  | $ | 3,321 |

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