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Income Taxes (Tables)

12 Months Ended

Feb. 28, 2023

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)			2023						2022						2021
U.S.			$	41,738					$	63,653					$	48,693
Non-U.S.			129,551						196,313						220,737
Total			$	171,289					$	259,966					$	269,430

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)			2023						2022						2021
Current:
U.S. federal			$	13,472					$	20,907					$	4,340
State			3,417						6,283						5,892
Non-U.S.			13,369						17,883						9,652
			30,258						45,073						19,884
Deferred:
U.S. federal			(3,337)						(5,269)						(3,828)
State			(1,815)						(1,766)						(1,795)
Non-U.S.			2,910						(1,836)						1,223
			(2,242)						(8,871)						(4,400)
Total			$	28,016					$	36,202					$	15,484

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,
			2023						2022						2021
Effective income tax rate at the U.S. statutory rate			21.0		%				21.0		%				21.0		%
Impact of U.S. state income taxes			0.3		%				1.4		%				0.6		%
Effect of statutory tax rate in Macau			(5.4)		%				0.1		%				(0.7)		%
Effect of statutory tax rate in Barbados			(3.3)		%				(11.0)		%				(15.4)		%
Effect of statutory tax rate in Switzerland			(2.0)		%				(1.2)		%				(1.5)		%
Effect of income from other non-U.S. operations subject to varying rates			2.1		%				1.2		%				1.1		%
Effect of foreign exchange fluctuations			2.5		%				0.5		%				(0.1)		%
Effect of asset impairment charges			—		%				—		%				0.3		%
Effect of U.S. tax reform			—		%				—		%				(3.5)		%
Effect of uncertain tax positions			0.2		%				0.6		%				3.2		%
Effect of non-deductible executive compensation			1.2		%				1.1		%				1.0		%
Effect of base erosion and anti-abuse tax			—		%				—		%				(0.6)		%
Other items			(0.2)		%				0.2		%				0.3		%
Effective income tax rate			16.4		%				13.9		%				5.7		%

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)			2023						2022
Deferred tax assets, gross:
Operating loss carryforwards and tax credits			$	10,882					$	13,195
Accounts receivable			9,674						11,144
Inventories			20,541						19,619
Operating lease liabilities			11,658						11,494
Research and development expenditures			5,722						—
Interest limitation			1,932						—
Accrued expenses and other			4,676						10,364
Total gross deferred tax assets			65,085						65,816
Valuation allowance			(10,706)						(11,673)
Deferred tax liabilities:
Operating lease assets			(8,997)						(8,635)
Depreciation			(9,397)						(10,589)
Amortization			(61,252)						(52,873)
Total deferred tax liabilities, net			$	(25,267)					$	(17,954)

Schedule of operating loss carryforwards

The composition of our operating loss carryforwards and tax credits at the end of fiscal 2023 is as follows:

						February 28, 2023
(in thousands)			Tax Year  Expiration Date Range			Deferred Tax Assets						Operating Loss Carryforward
U.S. state operating loss carryforwards			2032-2041			$	520					$	11,495
Non-U.S. operating loss carryforwards with definite carryover periods			2024-2040			4,304						17,197
Non-U.S. operating loss carryforwards with indefinite carryover periods			Indefinite			5,374						17,360
Subtotal						10,198						$	46,052
Less portion of valuation allowance established for operating loss carryforwards						(9,677)
Total operating loss carryforwards, net of valuation allowance						521
U.S. state tax credits			2037			684
Total operating loss carryforwards, net of valuation allowance and tax credits						$	1,205

Schedule of unrecognized tax benefits

During fiscal 2023 and 2022, 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)			2023						2022
Total unrecognized tax benefits, beginning balance			$	5,623					$	5,436
Tax positions taken during the current period			644						949
Changes in tax positions taken during a prior period			(249)						1,409
Impact of foreign currency remeasurement			—						50
Settlements			—						(2,221)
Total unrecognized tax benefits, ending balance			6,018						5,623
Less current unrecognized tax benefits			—						—
Non-current unrecognized tax benefits			$	6,018					$	5,623

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

As of February 28, 2023, tax years under examination or still subject to examination by material tax jurisdictions are as follows:

Jurisdiction						Tax Years Under Examination						Open Tax Years
Barbados						- None -						2018			—			2023
China						2009-2018						2009			—			2023
Germany						2014-2021						2014			—			2023
Hong Kong						2014-2017						2014			—			2023
Macao						- None -						2021			—			2023
Switzerland						2017-2021						2017			—			2023
United Kingdom						- None -						2021			—			2023
U.S.						- None -						2017			—			2023

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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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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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.

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