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Income Taxes (Tables) | 12 Months Ended
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Feb. 28, 2022
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) | 2022 |  | 2021 |  | 2020
U.S. | $ | 63,653 |  |  | $ | 48,693 |  |  | $ | 40,146 |
Non-U.S. | 196,313 |  |  | 220,737 |  |  | 125,794 |
Total | $ | 259,966 |  |  | $ | 269,430 |  |  | $ | 165,940 |
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) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
U.S. federal | $ | 20,907 |  |  | $ | 4,340 |  |  | $ | 12,551 |
State | 6,283 |  |  | 5,892 |  |  | 4,181 |
Non-U.S. | 17,883 |  |  | 9,652 |  |  | 2,571 |
| 45,073 |  |  | 19,884 |  |  | 19,303 |
Deferred: |  |  |  |  |
U.S. federal | (5,269) |  |  | (3,828) |  |  | (4,376) |
State | (1,766) |  |  | (1,795) |  |  | (413) |
Non-U.S. | (1,836) |  |  | 1,223 |  |  | (907) |
| (8,871) |  |  | (4,400) |  |  | (5,696) |
Total | $ | 36,202 |  |  | $ | 15,484 |  |  | $ | 13,607 |
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,
| 2022 |  | 2021 |  | 2020
Effective income tax rate at the U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Impact of U.S. state income taxes | 1.4 | % |  | 0.6 | % |  | 1.6 | %
Effect of statutory tax rate in Macau | 0.1 | % |  | (0.7) | % |  | (13.6) | %
Effect of statutory tax rate in Barbados | (11.0) | % |  | (15.4) | % |  | (5.5) | %
Effect of statutory tax rate in Switzerland | (1.2) | % |  | (1.5) | % |  | (0.4) | %
Effect of income from other non-U.S. operations subject to varying rates | 1.2 | % |  | 1.1 | % |  | 2.3 | %
Effect of foreign exchange fluctuations | 0.5 | % |  | (0.1) | % |  | 0.7 | %
Effect of asset impairment charges | — | % |  | 0.3 | % |  | 2.4 | %
Effect of U.S. tax reform | — | % |  | (3.5) | % |  | — | %
Effect of uncertain tax positions | 0.6 | % |  | 3.2 | % |  | (1.7) | %
Effect of non-deductible executive compensation | 1.1 | % |  | 1.0 | % |  | 1.4 | %
Effect of base erosion and anti-abuse tax | — | % |  | (0.6) | % |  | — | %
Other items | 0.2 | % |  | 0.3 | % |  | — | %
Effective income tax rate | 13.9 | % |  | 5.7 | % |  | 8.2 | %
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) | 2022 |  | 2021
Deferred tax assets, gross: |  |  |
Operating loss carryforwards | $ | 13,195 |  |  | $ | 14,785 |
Accounts receivable | 11,144 |  |  | 8,905 |
Inventories | 19,619 |  |  | 12,432 |
Operating lease liabilities | 11,494 |  |  | 10,388 |
Accrued expenses and other | 10,364 |  |  | 10,731 |
Total gross deferred tax assets | 65,816 |  |  | 57,241 |
Valuation allowance | (11,673) |  |  | (15,021) |
Deferred tax liabilities: |  |  |
Operating lease assets | (8,635) |  |  | (7,500) |
Depreciation | (10,589) |  |  | (11,828) |
Amortization | (52,873) |  |  | (6,879) |
Total deferred tax (liabilities) assets, net | $ | (17,954) |  |  | $ | 16,013 |
Schedule of operating loss carryforwards | The composition of our operating loss carryforwards at the end of fiscal 2022 is as follows:
|  | February 28, 2022
(in thousands) | Tax Year Expiration Date Range | Deferred Tax Assets |  | Operating Loss Carryforward
U.S. federal operating loss carryforwards | Indefinite | $ | 2,936 |  |  | $ | 13,979 |
U.S. state operating loss carryforwards | 2032-2042 | 732 |  |  | 18,504 |
Non-U.S. operating loss carryforwards with definite carryover periods | 2022-2039 | 4,483 |  |  | 18,072 |
Non-U.S. operating loss carryforwards with indefinite carryover periods | Indefinite | 5,044 |  |  | 15,921 |
Subtotal |  | 13,195 |  |  | $ | 66,476 |
Less portion of valuation allowance established for operating loss carryforwards |  | (9,522) |  |  |
Total |  | $ | 3,673 |  |  |
Schedule of unrecognized tax benefits | During fiscal 2022 and 2021, 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) | 2022 |  | 2021
Total unrecognized tax benefits, beginning balance | $ | 5,436 |  |  | $ | 113 |
Tax positions taken during the current period | 949 |  |  | 1,542 |
Changes in tax positions taken during a prior period | 1,409 |  |  | 4,280 |
Impact of foreign currency re-measurement | 50 |  |  | — |
Settlements | (2,221) |  |  | (499) |
Total unrecognized tax benefits, ending balance | 5,623 |  |  | 5,436 |
Less current unrecognized tax benefits | — |  |  | — |
Non-current unrecognized tax benefits | $ | 5,623 |  |  | $ | 5,436 |
Schedule of material tax years under examination or still subject to examination by major tax jurisdictions | As of February 28, 2022, 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 - |  | 2021 | — | 2022
U.S. |  | 2017-2018 |  | 2017 | — | 2022
Switzerland |  | - None - |  | 2018 | — | 2022
Hong Kong |  | 2014-2016 |  | 2014 | — | 2022
China |  | 2009-2018 |  | 2009 | — | 2022

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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