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INCOME TAXES
 12 Months Ended
Feb. 26, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income tax expense consisted of the following (in millions):
Fiscal
 2021		Fiscal
 2020		Fiscal
 2019
Current
  Federal (1)$211.1 $307.0 $87.2 
  State (2)49.2 84.5 49.2 
  Foreign0.6 (0.7)2.3 
Total Current260.9 390.8 138.7 
Deferred
  Federal198.3 (92.5)(14.1)
  State12.4 (27.3)(1.1)
  Foreign8.3 7.5 9.3 
Total Deferred219.0 (112.3)(5.9)
Income tax expense$479.9 $278.5 $132.8 
(1) Federal current tax expense net of $0.5 million, $5.7 million and $66.8 million tax benefit of net operating losses ("NOL") in fiscal 2021, fiscal 2020 and fiscal 2019, respectively.
(2) State current tax expense net of $16.7 million and $22.6 million tax benefit of NOLs in fiscal 2020 and fiscal 2019, respectively. There was no tax benefit of NOLs in fiscal 2021.

The difference between the actual tax provision and the tax provision computed by applying the statutory federal income tax rate of 21% to Income before income taxes was attributable to the following (in millions):
Fiscal
 2021		Fiscal
 2020		Fiscal
 2019
Income tax expense at federal statutory rate$440.9 $237.0 $125.8 
State income taxes, net of federal benefit100.7 58.0 32.3 
Change in valuation allowance(2.5)(0.5)(7.2)
Unrecognized tax benefits(33.9)8.6 7.7 
Charitable donations(6.1)(8.2)(6.9)
Tax Credits(20.3)(23.3)(23.5)
Other1.1 6.9 4.6 
Income tax expense$479.9 $278.5 $132.8 
Deferred income taxes reflect the net tax effects of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. The Company's deferred tax assets and liabilities consisted of the following (in millions):
February 26,
2022		February 27,
2021
Deferred tax assets:
Compensation and benefits$229.5 $275.0 
Net operating loss107.0 118.4 
Pension & postretirement benefits280.2 333.1 
Self-Insurance275.3 271.0 
Tax credits30.7 39.0 
Lease obligations1,740.7 1,785.7 
Other97.4 96.2 
Gross deferred tax assets2,760.8 2,918.4 
Less: valuation allowance(113.6)(130.4)
Total deferred tax assets2,647.2 2,788.0 
Deferred tax liabilities:
Depreciation and amortization1,348.3 1,233.7 
Inventories361.8 335.9 
Operating lease assets1,530.1 1,570.4 
Other206.8 181.7 
Total deferred tax liabilities3,447.0 3,321.7 
Net deferred tax liability$(799.8)$(533.7)
Noncurrent deferred tax asset$— $— 
Noncurrent deferred tax liability(799.8)(533.7)
Total$(799.8)$(533.7)

The valuation allowance activity on deferred tax assets was as follows (in millions):
February 26,
2022		February 27,
2021		February 29,
2020
Beginning balance$130.4 $135.1 $139.5 
Additions charged to income tax expense2.1 2.7 3.5 
Reductions credited to income tax expense(4.6)(3.2)(10.7)
Changes to other comprehensive income or loss and other(14.3)(4.2)2.8 
Ending balance$113.6 $130.4 $135.1 

The Company assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation, as of February 26, 2022, a valuation allowance of $113.6 million has been recorded for the portion of the deferred tax asset that is not more likely than not to be realized, consisting primarily of tax credits and carryovers in jurisdictions where the Company has minimal presence or does not expect to have future taxable income. The Company will continue to evaluate the need to adjust the valuation allowance. The amount of the deferred tax asset considered realizable, however, could be adjusted depending on the Company's performance in certain subsidiaries or jurisdictions.

The Company currently has federal and state NOL carryforwards of $21.2 million and $1,397.5 million, respectively, which will begin to expire in 2022 and continue through the fiscal year ending February 2042. As of February 26, 2022, the Company had $30.7 million of state credit carryforwards, the majority of which will expire in 2023. The Company had no federal credit carryforwards as of February 26, 2022.
Changes in the Company's unrecognized tax benefits consisted of the following (in millions):
Fiscal
 2021		Fiscal
 2020		Fiscal
 2019
Beginning balance$368.8 $373.8 $376.2 
Increase related to tax positions taken in the current year1.2 1.5 0.9 
Increase related to tax positions taken in prior years0.3 1.8 3.0 
Decrease related to tax position taken in prior years(0.1)(1.1)(2.2)
Decrease related to settlements with taxing authorities(72.9)(3.7)(4.1)
Decrease related to lapse of statute of limitations(21.3)(3.5)— 
Ending balance$276.0 $368.8 $373.8 

Included in the balance of unrecognized tax benefits as of February 26, 2022, February 27, 2021 and February 29, 2020 are tax positions of $202.6 million, $277.4 million and $268.2 million, respectively, which would reduce the Company's effective tax rate if recognized in future periods. Of the $202.6 million that could impact tax expense, the Company has recorded $7.2 million of indemnification assets that would offset any future recognition. As of February 26, 2022, the Company is no longer subject to federal income tax examinations for the fiscal years prior to 2012 and in most states, is no longer subject to state income tax examinations for fiscal years before 2012. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. For fiscal 2021, fiscal 2020 and fiscal 2019, the Company recognized expense related to interest and penalties, net of settlement adjustments, of $3.0 million, $8.2 million and $9.6 million, respectively.

The Company believes it is reasonably possible that the reserve for uncertain tax positions may be reduced by approximately $186.2 million in the next 12 months due to ongoing tax examinations and expiration of statutes of limitations.

The Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. The Company analyzed the various income tax and non-income tax provisions of the CARES Act based on currently available technical guidance and determined that aside from an impact to the timing of cash flows, there is no material impact to the Company's Consolidated Financial Statements. Specifically, as it relates to the Company, the CARES Act allowed for deferred payment of the employer-paid portion of social security taxes through the end of 2020, with 50% due on December 31, 2021 and the remainder due on December 31, 2022. The $213.3 million deferred as of February 26, 2022 was recorded in Accrued salaries and wages, and the $426.6 million deferred as of February 27, 2021 was recorded in Accrued salaries and wages and Other long-term liabilities.