v3.25.1
Income Taxes (Tables)
 12 Months Ended
Feb. 28, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Taxes
Our components of income before income tax are as follows:

 Fiscal Years Ended Last Day of February,
(in thousands)202520242023
U.S.$19,827 $68,957 $41,738 
Non-U.S.71,837 140,085 129,551 
Total$91,664 $209,042 $171,289 
Schedule of Components of Income Tax Expense (Benefit)
Our components of income tax (benefit) expense are as follows:

 Fiscal Years Ended Last Day of February,
(in thousands)202520242023
Current:   
U.S. federal$9,570 $9,259 $13,472 
State5,046 2,704 3,417 
Non-U.S.29,279 15,275 13,369 
 43,895 27,238 30,258 
Deferred:   
U.S. federal(2,287)9,449 (3,337)
State614 3,252 (1,815)
Non-U.S.(74,309)509 2,910 
 (75,982)13,210 (2,242)
Total$(32,087)$40,448 $28,016 
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,
 202520242023
Effective income tax rate at the U.S. statutory rate21.0 %21.0 %21.0 %
Impact of U.S. state income taxes5.6 %2.2 %0.3 %
Effect of statutory tax rate in Macau(3.5)%(4.0)%(5.4)%
Effect of statutory tax rate in Barbados(1.6)%(2.4)%(3.3)%
Effect of statutory tax rate in Switzerland(0.3)%(1.8)%(2.0)%
Effect of income from other non-U.S. operations subject to varying rates2.4 %2.3 %2.1 %
Effect of foreign exchange fluctuations3.2 %(0.3)%2.5 %
Effect of stock compensation
2.3 %1.2 %— %
Effect of uncertain tax positions(7.7)%0.4 %0.2 %
Effect of non-deductible executive compensation1.5 %1.9 %1.2 %
Effect of intangible asset reorganization
(70.5)%— %— %
Effect of asset impairment
2.2 %— %— %
Effect of changes in valuation allowance
2.5 %3.9 %(0.5)%
Effect of base erosion and anti-abuse tax
0.9 %— %— %
Effect of changes in tax rates6.8 %(4.4)%(0.4)%
Other items0.2 %(0.7)%0.7 %
Effective income tax rate(35.0)%19.3 %16.4 %
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)20252024
Deferred tax assets, gross:
Operating loss carryforwards and tax credits$22,436 $19,345 
Accounts receivable5,976 6,877 
Inventories18,373 26,498 
Operating lease liabilities10,448 10,329 
Research and development expenditures4,911 2,847 
Interest limitation13,616 7,561 
Accrued expenses and other5,613 5,953 
Amortization
14,033 — 
Total gross deferred tax assets95,406 79,410 
Valuation allowance(21,374)(19,044)
Deferred tax liabilities:  
Operating lease assets(7,844)(8,119)
Depreciation(27,811)(28,433)
Amortization— (61,405)
Total deferred tax assets (liabilities), net
$38,377 $(37,591)
Schedule of Operating Loss Carryforwards
The composition of our operating loss carryforwards and tax credits at the end of fiscal 2025 is as follows:

 February 28, 2025
(in thousands)Tax Year
 Expiration
Date Range		Deferred
Tax
Assets		Operating
Loss
Carryforward
U.S. state operating loss carryforwards2032-2044$1,515 $32,974 
Non-U.S. operating loss carryforwards with definite carryover periods2028-20413,342 13,973 
Non-U.S. operating loss carryforwards with indefinite carryover periodsIndefinite17,579 98,298 
Subtotal 22,436 $145,245 
Less portion of valuation allowance established for operating loss carryforwards (21,298)
Total operating loss carryforwards, net of valuation allowance$1,138 
Schedule of Unrecognized Tax Benefits
During fiscal 2025 and 2024, 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)20252024
Total unrecognized tax benefits, beginning balance$6,824 $6,018 
Tax positions taken during the current period894 806 
Settlements(7,113)— 
Total unrecognized tax benefits, ending balance605 6,824 
Less current unrecognized tax benefits— — 
Non-current unrecognized tax benefits$605 $6,824 
Schedule of Material Tax Years Under Examination or Still Subject to Examination by Major Tax Jurisdictions As of February 28, 2025, tax years under examination or still subject to examination by material tax jurisdictions are as follows:
JurisdictionTax Years Under ExaminationOpen Tax Years
Barbados- None -2020—2025
China2009-20182009—2025
Hong Kong2014-20182014—2025
Macao- None -2021—2025
Switzerland- None -2017—2025
United Kingdom- None -2024—2025
U.S.- None -2021—2025