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Income taxes (Tables)

12 Months Ended

Feb. 28, 2021

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 Last Day of February,
(in thousands)			2021						2020						2019
U.S.			$	48,693					$	40,146					$	32,135
Non-U.S.			220,737						125,794						155,865
Total			$	269,430					$	165,940					$	188,000

Schedule of components of income tax expense (benefit)

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

			Fiscal Years Ended Last Day of February,
(in thousands)			2021						2020						2019
U.S.
Current			$	10,232					$	16,732					$	2,460
Deferred			(5,623)						(4,789)						10,480
			4,609						11,943						12,940
Non-U.S.
Current			9,652						2,571						2,102
Deferred			1,223						(907)						(1,266)
			10,875						1,664						836
Total			$	15,484					$	13,607					$	13,776

Schedule of effective income tax rate reconciliation

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

			Fiscal Years Ended Last Day of February,
			2021						2020						2019
Effective income tax rate at the U.S. statutory rate			21.0		%				21.0		%				21.0		%
Impact of U.S. state income taxes			0.6		%				1.6		%				1.2		%
Effect of statutory tax rate in Macau			(3.4)		%				(13.6)		%				(10.3)		%
Effect of statutory tax rate in Barbados			(15.4)		%				(5.5)		%				(5.9)		%
Effect of statutory tax rate in Switzerland			(1.5)		%				(0.4)		%				(1.9)		%
Effect of income from other non-U.S. operations subject to varying rates			3.8		%				2.3		%				1.8		%
Effect of foreign exchange fluctuations			(0.1)		%				0.7		%				0.2		%
Effect of asset impairment charges			0.3		%				2.4		%				—		%
Effect of U.S. tax reform			(3.5)		%				—		%				(0.1)		%
Effect of uncertain tax positions			3.2		%				(1.7)		%				(0.6)		%
Effect of non-deductible executive compensation			1.0		%				1.4		%				0.9		%
Effect of base erosion and anti-abuse tax			(0.6)		%				—		%				1.0		%
Other items			0.3		%				—		%				—		%
Effective income tax rate			5.7		%				8.2		%				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 are as follows:

			Fiscal Years Ended Last Day of February,
(in thousands)			2021						2020
Deferred tax assets, gross:
Operating loss carryforwards			$	14,785					$	13,908
Accounts receivable			8,905						5,467
Inventories			12,432						8,751
Operating lease liabilities			10,388						10,451
Accrued expenses and other			10,731						7,692
Total gross deferred tax assets			57,241						46,269
Valuation allowance			(15,021)						(14,073)
Deferred tax liabilities:
Operating lease assets			(7,500)						(7,573)
Depreciation and amortization			(18,707)						(14,212)
Total deferred tax assets, net			$	16,013					$	10,411

Schedule of operating loss carryforwards

The composition of our operating loss carryforwards at the end of fiscal 2021 is as follows:

						February 28, 2021
(in thousands)			Tax Year  Expiration Date Range			Deferred Tax Assets						Operating Loss Carryforward
U.S. state operating loss carryforward			2030-2038			$	334					$	4,550
Non-U.S. operating loss carryforwards with definite carryover periods			2022-2038			1,899						7,387
Non-U.S. operating loss carryforwards with indefinite carryover periods			Indefinite			12,552						46,066
Subtotal						14,785						$	58,003
Less portion of valuation allowance established for operating loss carryforwards						(14,257)
Total						$	528

Schedule of unrecognized tax benefits

During fiscal 2021 and 2020, changes in the total amount of unrecognized tax benefits (excluding interest and penalties) were as follows:

			Fiscal Years Ended Last Day of February,
(in thousands)			2021						2020
Total unrecognized tax benefits, beginning balance			$	113					$	3,205
Tax positions taken during the current period			1,542						—
Changes in tax positions taken during a prior period			4,280						(2,819)
Settlements			(499)						(273)
Total unrecognized tax benefits, ending balance			5,436						113
Less current unrecognized tax benefits			—						—
Non-current unrecognized tax benefits			$	5,436					$	113

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

As of February 28, 2021, 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 -			2020			—			2021
U.S.			- None -			2017			—			2021
Switzerland			- None -			2017			—			2021
Hong Kong			- None -			2014			—			2021
China			2009-2018			2009			—			2021

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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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