INCOME TAXES (Tables)

12 Months Ended

Feb. 26, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

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
Foreign	0.6		(0.7)		2.3
Total Current	260.9		390.8		138.7
Deferred
Federal	198.3		(92.5)		(14.1)
State	12.4		(27.3)		(1.1)
Foreign	8.3		7.5		9.3
Total Deferred	219.0		(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.

Schedule of Effective Income Tax Rate Reconciliation

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 benefit	100.7		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)
Other	1.1		6.9		4.6
Income tax expense	$	479.9	$	278.5	$	132.8

Schedule of Deferred Tax Assets and Liabilities

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 loss	107.0		118.4
Pension & postretirement benefits	280.2		333.1
Self-Insurance	275.3		271.0
Tax credits	30.7		39.0
Lease obligations	1,740.7		1,785.7
Other	97.4		96.2
Gross deferred tax assets	2,760.8		2,918.4
Less: valuation allowance	(113.6)		(130.4)
Total deferred tax assets	2,647.2		2,788.0
Deferred tax liabilities:
Depreciation and amortization	1,348.3		1,233.7
Inventories	361.8		335.9
Operating lease assets	1,530.1		1,570.4
Other	206.8		181.7
Total deferred tax liabilities	3,447.0		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)

Schedule of Valuation Allowance Activity

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 expense	2.1		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

Schedule of Unrecognized Tax Benefits

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 year	1.2		1.5		0.9
Increase related to tax positions taken in prior years	0.3		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