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Income Taxes (Tables)

12 Months Ended

Feb. 28, 2019

Income Tax Disclosure [Abstract]

Schedule of components of income before taxes

Our components of income before income tax expense are as follows:

	Fiscal Years Ended February 28,
(in thousands)	2019			2018			2017
U.S.	$	32,135		$	23,824		$	20,878
Non-U.S.	155,865			131,614			134,839
Total	$	188,000		$	155,438		$	155,717

Schedule of components of income tax expense (benefit)

Our components of income tax expense (benefit) are as follows:

	Fiscal Years Ended February 28,
(in thousands)	2019			2018			2017
U.S.
Current	$	2,460		$	3,380		$	19,195
Deferred	10,480			19,578			(10,475		)
	12,940			22,958			8,720
Non-U.S.
Current	2,102			1,912			(290		)
Deferred	(1,266		)	1,686			2,977
	836			3,598			2,687
Total	$	13,776		$	26,556		$	11,407

Schedule of effective income tax rate reconciliation

A income tax rate reconciliation of these differences are as follows:

	Fiscal Years Ended February 28,
	2019		2018		2017
Effective income tax rate at the U.S. statutory rate	21.0	%	32.7	%	35.0	%
Impact of U.S. state income taxes	1.2	%	0.5	%	0.5	%
Effect of statutory tax rate in Macau	(10.3	)%	(19.5	)%	(20.1	)%
Effect of statutory tax rate in Barbados	(5.9	)%	(5.2	)%	(7.3	)%
Effect of statutory tax rate in Europe	(1.9	)%	(5.3	)%	(3.6	)%
Effect of income from other non-U.S. operations subject to varying rates	1.8	%	2.1	%	2.1	%
Effect of foreign exchange fluctuations	0.2	%	0.3	%	0.4	%
Effect of asset impairment charges	—	%	2.2	%	0.4	%
Effect of U.S. tax reform	(0.1	)%	11.5	%	—	%
Effect of uncertain tax positions	(0.6	)%	(1.3	)%	(1.1	)%
Effect of nondeductible executive compensation	0.9	%	0.6	%	—	%
Effect of base erosion and anti-abuse tax	1.0	%	—	%	—	%
Other items	—	%	(1.5	)%	1.0	%
Effective income tax rate	7.3	%	17.1	%	7.3	%

Schedule of components of deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of the last day of February 2019 and 2018 are as follows:

	February 28,
(in thousands)	2019			2018
Deferred tax assets, gross:
Operating loss carryforwards	$	18,300		$	32,829
Accounts receivable	4,680			4,767
Inventories	7,806			7,183
Accrued expenses and other	8,293			7,385
Total gross deferred tax assets	39,079			52,164
Valuation allowance	(17,086		)	(17,747		)
Deferred tax liabilities:
Depreciation and amortization	(19,750		)	(24,859		)
Total deferred tax liabilities, net	$	2,243		$	9,558

Schedule of operating loss carryforwards

The composition of our operating loss carryforwards at the end of fiscal 2019 is as follows:

	February 28, 2019
(in thousands)	Tax Year  Expiration Date Range	Deferred Tax Assets			Operating Loss Carryforward
U.S. federal operating loss carryforward	Indefinite	$	1,051		$	5,005
U.S. state operating loss carryforward	2021 - 2037	138			3,704
Non-U.S. operating loss carryforwards with definite carryover periods	2020 - 2036	4,716			17,599
Non-U.S. operating loss carryforwards with indefinite carryover periods	Indefinite	12,395			44,396
Subtotals		18,300			$	70,704
Less portion of valuation allowance established for operating loss carryforwards		(17,086		)
Total		$	1,214

Schedule of unrecognized tax benefits

During fiscal 2019 and 2018, changes in the total amount of unrecognized tax benefits were as follows:

	Fiscal Years Ended February 28,
(in thousands)	2019			2018
Total unrecognized tax benefits, beginning balance	$	4,428		$	6,611
Resolution of tax dispute	—			(1,486		)
Changes in tax positions taken during a prior period	15			88
Lapse in statute of limitations	(1,057		)	(890		)
Impact of foreign currency re-measurement	(161		)	218
Settlements	(20		)	(113		)
Total unrecognized tax benefits, ending balance	3,205			4,428
Less current unrecognized tax benefits	(316		)	(1,079		)
Noncurrent unrecognized tax benefits	$	2,889		$	3,349

Schedule of material tax years under examination or still subject to examination by major tax jurisdictions

As of February 28, 2019, tax years under examination or still subject to examination by material tax jurisdictions are as follows:

Jurisdiction	Tax Years Under Examination	Open Tax Years
United Kingdom	- None -	2018	—	2019
United States	2016 - 2018	2016	—	2019
Switzerland	- None -	2015	—	2019
Hong Kong	- None -	2013	—	2019

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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