INCOME TAXES (Tables)

12 Months Ended

Feb. 25, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The components of income tax expense consisted of the following (in millions):

	Fiscal  2022		Fiscal  2021		Fiscal  2020
Current
Federal (1)	$	320.5	$	211.1	$	307.0
State (2)	88.1		49.2		84.5
Foreign	0.5		0.6		(0.7)
Total Current	409.1		260.9		390.8
Deferred
Federal	(7.6)		198.3		(92.5)
State	11.1		12.4		(27.3)
Foreign	9.4		8.3		7.5
Total Deferred	12.9		219.0		(112.3)
Income tax expense	$	422.0	$	479.9	$	278.5

(1) Federal current tax expense net of $0.5 million, $0.5 million and $5.7 million tax benefit of net operating losses ("NOL") in fiscal 2022, fiscal 2021 and fiscal 2020, respectively.

(2) State current tax expense net of $16.7 million tax benefit of NOLs in fiscal 2020. There was no tax benefit of NOLs in fiscal 2022 and 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  2022		Fiscal  2021		Fiscal  2020
Income tax expense at federal statutory rate	$	406.4	$	440.9	$	237.0
State income taxes, net of federal benefit	85.9		100.7		58.0
Change in valuation allowance	0.1		(2.5)		(0.5)
Unrecognized tax benefits	(41.8)		(33.9)		8.6
Tax credits	(26.2)		(20.3)		(23.3)
Other	(2.4)		(5.0)		(1.3)
Income tax expense	$	422.0	$	479.9	$	278.5

Schedule of Deferred Tax Assets and Liabilities

The Company's deferred tax assets and liabilities consisted of the following (in millions):

	February 25, 2023		February 26, 2022
Deferred tax assets:
Compensation and benefits	$	190.6	$	229.5
Net operating loss	99.5		107.0
Pension & postretirement benefits	248.9		280.2
Self-Insurance	289.7		275.3
Tax credits	26.2		30.7
Lease obligations	1,722.4		1,740.7
Other	110.9		97.4
Gross deferred tax assets	2,688.2		2,760.8
Less: valuation allowance	(102.3)		(113.6)
Total deferred tax assets	2,585.9		2,647.2
Deferred tax liabilities:
Depreciation and amortization	1,360.2		1,348.3
Inventories	373.1		361.8
Operating lease assets	1,518.9		1,530.1
Other	187.7		206.8
Total deferred tax liabilities	3,439.9		3,447.0
Net deferred tax liability	$	(854.0)	$	(799.8)
Noncurrent deferred tax asset	$	—	$	—
Noncurrent deferred tax liability	(854.0)		(799.8)
Total	$	(854.0)	$	(799.8)

Schedule of Valuation Allowance Activity

The valuation allowance activity on deferred tax assets was as follows (in millions):

	February 25, 2023		February 26, 2022		February 27, 2021
Beginning balance	$	113.6	$	130.4	$	135.1
Additions charged to income tax expense	3.1		2.1		2.7
Reductions credited to income tax expense	(3.0)		(4.6)		(3.2)
Changes to other comprehensive income or loss and other	(11.4)		(14.3)		(4.2)
Ending balance	$	102.3	$	113.6	$	130.4

Schedule of Unrecognized Tax Benefits

Changes in the Company's unrecognized tax benefits consisted of the following (in millions):

	Fiscal  2022		Fiscal  2021		Fiscal  2020
Beginning balance	$	276.0	$	368.8	$	373.8
Increase related to tax positions taken in the current year	5.0		1.2		1.5
Increase related to tax positions taken in prior years	2.1		0.3		1.8
Decrease related to tax position taken in prior years	—		(0.1)		(1.1)
Decrease related to settlements with taxing authorities	(20.7)		(72.9)		(3.7)
Decrease related to lapse of statute of limitations	(46.4)		(21.3)		(3.5)
Ending balance	$	216.0	$	276.0	$	368.8