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Fair Value
 9 Months Ended
Nov. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value
Note 11 - Fair Value 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. These inputs are classified into the following hierarchy:

Level 1:Quoted prices for identical assets or liabilities in active markets;

Level 2:Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and

Level 3:Unobservable inputs that reflect the reporting entity’s own assumptions.

All of our financial assets and liabilities, except for our investments in U.S. Treasury Bills, are classified as Level 2 because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable. Our investments in U.S. Treasury Bills are classified as Level 1 because their value is based on quoted prices in active markets for identical assets.
The following table presents the fair value of our financial assets and liabilities:
 
Fair Value
(in thousands)November 30, 2023February 28, 2023
Assets: 
Cash equivalents (money market accounts)$2,829 $381 
U.S. Treasury Bills
7,435 — 
Interest rate swaps3,117 5,746 
Foreign currency derivatives204 1,423 
Total assets$13,585 $7,550 
  
Liabilities: 
Foreign currency derivatives699 711 
Total liabilities$699 $711 

All of our financial assets and liabilities, except for our investments in U.S. Treasury Bills, are measured and recorded at fair value on a recurring basis. Our investments in U.S. Treasury Bills, are recorded at amortized cost. As of November 30, 2023, the current and non-current carrying amounts of our U.S. Treasury Bills were $2.4 million and $5.0 million, respectively, and were included within Prepaid expenses and other current assets and Other assets, respectively, in our condensed consolidated balance sheet.

The carrying amounts of cash, accounts payable, accrued expenses and other current liabilities and income taxes payable approximate fair value because of the short maturity of these items. The carrying amounts of receivables approximate fair value due to the effect of the related allowance for credit losses. The carrying amount of our floating rate long-term debt approximates its fair value.

Our investments in U.S. Treasury Bills are classified as held-to-maturity because we have the positive intent and ability to hold the securities to maturity. We invest in U.S. Treasury Bills with maturities ranging from one to three years. Gross unrealized gains and losses are not material for any period presented. During both the three and nine month periods ended November 30, 2023, we recognized interest income on these investments of $0.1 million, which is included in Non-operating income, net in our condensed consolidated statements of income.

We use derivatives to manage our exposure to changes in foreign currency exchange rates, which include foreign currency forward contracts and cross-currency debt swaps. In addition, we use interest rate swaps to manage our exposure to changes in interest rates. All of our derivative assets and liabilities are recorded at fair value. See Notes 12 and 13 for more information on our derivatives.