XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Income Taxes | 12 Months Ended
--- | ---
Feb. 29, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | (11) Income Taxes The following table represents components of the provision for income taxes for fiscal years ended (in thousands):
|  | 2016 |  |  | 2015 |  |  | 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 18,421 |  |  | $ | 14,006 |  |  | $ | 17,755 |
State and local |  |  | 2,724 |  |  |  | 2,451 |  |  |  | 2,946 |
Foreign |  |  | 1,161 |  |  |  | 322 |  |  |  | 183 |
Total current |  |  | 22,306 |  |  |  | 16,779 |  |  |  | 20,884 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (1,269 | ) |  |  | (9,920 | ) |  |  | (1,550 | )
State and local |  |  | (201 | ) |  |  | (1,459 | ) |  |  | (731 | )
Total deferred |  |  | (1,470 | ) |  |  | (11,379 | ) |  |  | (2,281 | )
Total provision for income taxes |  | $ | 20,836 |  |  | $ | 5,400 |  |  | $ | 18,603 |
The Company’s effective tax rate on earnings from operations for the year ended February 29, 2016, was 36.8%, as compared with a (13.8)% and 58.5% in 2015 and 2014, respectively. The following summary reconciles the statutory U.S. Federal income tax rate to the Company’s effective tax rate for the fiscal years ended:
|  | 2016 |  |  | 2015 |  |  | 2014 |
Statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Provision for state income taxes, net of Federal income tax benefit |  |  | 2.9 |  |  |  | (1.9 | ) |  |  | 3.9 |
Domestic production activities deduction |  |  | (2.2 | ) |  |  | 3.5 |  |  |  | (4.8 | )
Impairment of goodwill |  |  | — |  |  |  | (50.0 | ) |  |  | 20.5 |
Other |  |  | 1.1 |  |  |  | (0.4 | ) |  |  | 3.9 |
|  |  | 36.8 | % |  |  | (13.8 | )% |  |  | 58.5 | %
Deferred taxes are recorded to give recognition to temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The tax effects of these temporary differences are recorded as deferred tax assets and deferred tax liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years. Deferred tax liabilities generally represent items that have been deducted for tax purposes, but have not yet been recorded in the consolidated statements of earnings. To the extent there are deferred tax assets that are more likely than not to be realized, a valuation allowance would not be recorded. The components of deferred income tax assets and liabilities are summarized as follows (in thousands) for fiscal years ended:
|  | 2016 |  |  | 2015 |
Current deferred tax assets (liabilities) related to: |  |  |  |  |  |  |  |
Allowance for doubtful receivables |  | $ | 1,378 |  |  | $ | 1,356 |
Inventories |  |  | 3,093 |  |  |  | 2,745 |
Employee compensation and benefits |  |  | 1,925 |  |  |  | 2,305 |
Other |  |  | (111 | ) |  |  | (134 | )
|  | $ | 6,285 |  |  | $ | 6,272 |
Non-current deferred tax (liabilities) assets related to: |  |  |  |  |  |  |  |
Property, plant and equipment |  | $ | (8,885 | ) |  | $ | (9,087 | )
Goodwill and other intangible assets |  |  | (10,044 | ) |  |  | (10,556 | )
Pension and noncurrent employee compensation benefits |  |  | 6,948 |  |  |  | 6,064 |
Net operating loss and foreign tax credits |  |  | 3,480 |  |  |  | 113 |
Property tax |  |  | (560 | ) |  |  | (367 | )
Currency exchange |  |  | 6,090 |  |  |  | 2,842 |
Stock options |  |  | 785 |  |  |  | 747 |
Valuation allowance |  |  | (1,380 | ) |  |  | — |
Other |  |  | (3 | ) |  |  | (4 | )
|  | $ | (3,569 | ) |  | $ | (10,248 | )
Included in other assets on the consolidated balance sheets for the years ended February 28, 2015 and 2014 is approximately $2.3 million of refund receivable related to amended Canadian tax returns for fiscal years 2006-2008. In fiscal year 2016, the refund related to amended Canadian tax returns was reclassified as a foreign tax credit. The Company established a valuation allowance related to its foreign tax credit of $1.4 million. As of the fiscal year ended 2016, the Company has federal net operating loss carry forwards of approximately $203,655 expiring in fiscal years 2024 through 2025. Based on historical earnings and expected sufficient future taxable income, management believes it will be able to fully utilize the net operating loss carry forwards. Accounting standards require a two-step approach to determine how to recognize tax benefits in the financial statements where recognition and measurement of a tax benefit must be evaluated separately. A tax benefit will be recognized only if it meets a “more-likely-than-not” recognition threshold. For tax positions that meet this threshold, the tax benefit recognized is based on the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the taxing authority. At fiscal year-end 2016 and 2015, unrecognized tax benefits related to uncertain tax positions, including accrued interest and penalties of $261,000 and $330,000, respectively, are included in other liabilities on the consolidated balance sheets and would impact the effective rate if recognized. For fiscal year 2016, the unrecognized tax benefit includes an aggregate of $18,000 of interest expense. Approximately $18,000 of unrecognized tax benefits relate to items that are affected by expiring statutes of limitations within the next 12 months. A reconciliation of the change in the unrecognized tax benefits for fiscal years ended 2016 and 2015 is as follows (in thousands):
|  | 2016 |  |  | 2015 |
Balance at beginning of year |  | $ | 330 |  |  | $ | 246 |
Additions based on tax positions related to the current year |  |  | 41 |  |  |  | 166 |
Reductions due to lapses of statutes of limitations |  |  | (110 | ) |  |  | (82 | )
Balance at end of year |  | $ | 261 |  |  | $ | 330 |
The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions and foreign tax jurisdictions. The Company has concluded all U.S. Federal income tax matters for years through 2010. All material state and local income tax matters have been concluded for years through 2010 and foreign tax jurisdictions through 2010. The Company recognizes interest expense on underpayments of income taxes and accrued penalties related to unrecognized non-current tax benefits as part of the income tax provision. Other than amounts included in the unrecognized tax benefits, the Company did not recognize any interest or penalties for the fiscal years ended 2016, 2015 and 2014.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration