INCOME TAXES (Tables)

12 Months Ended

Feb. 22, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

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

	Fiscal  2024		Fiscal  2023		Fiscal  2022
Current
Federal (1)	$	228.9	$	348.2	$	320.5
State (2)	46.0		56.4		88.1
Foreign	1.3		1.0		0.5
Total Current	276.2		405.6		409.1
Deferred
Federal	(11.8)		(83.1)		(7.6)
State	(92.9)		31.7		11.1
Foreign	(0.4)		(61.2)		9.4
Total Deferred	(105.1)		(112.6)		12.9
Income tax expense	$	171.1	$	293.0	$	422.0

(1) Federal current tax expense is net of $0.3 million, $0.3 million and $0.5 million tax benefit of net operating losses ("NOL") in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.

(2) State current tax expense is net of $1.0 million tax benefit of NOLs in fiscal 2024. There was no tax benefit of NOLs in fiscal 2023 and fiscal 2022.

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  2024		Fiscal  2023		Fiscal  2022
Income tax expense at federal statutory rate	$	237.3	$	333.7	$	406.4
State income taxes, net of federal benefit	50.6		58.5		85.9
Change in valuation allowance	3.2		3.2		0.1
Unrecognized tax benefits	(95.2)		(67.3)		(41.8)
Tax credits	(23.0)		(37.1)		(26.2)
Other	(1.8)		2.0		(2.4)
Income tax expense	$	171.1	$	293.0	$	422.0

Schedule of Deferred Tax Assets and Liabilities

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

	February 22, 2025		February 24, 2024
Deferred tax assets:
Compensation and benefits	$	192.2	$	204.3
Net operating loss	63.7		71.2
Pension & postretirement benefits	194.5		215.9
Self-Insurance	312.8		299.8
Tax credits	5.7		8.5
Lease obligations	1,775.3		1,735.1
Other	71.3		104.4
Gross deferred tax assets	2,615.5		2,639.2
Less: valuation allowance	(63.7)		(65.6)
Total deferred tax assets	2,551.8		2,573.6
Deferred tax liabilities:
Depreciation and amortization	1,302.3		1,359.9
Inventories	401.7		374.9
Operating lease assets	1,587.4		1,543.3
Other	84.5		103.1
Total deferred tax liabilities	3,375.9		3,381.2
Net deferred tax liability	$	(824.1)	$	(807.6)
Noncurrent deferred tax asset	$	—	$	—
Noncurrent deferred tax liability	(824.1)		(807.6)
Total	$	(824.1)	$	(807.6)

Schedule of Valuation Allowance Activity

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

	February 22, 2025		February 24, 2024		February 25, 2023
Beginning balance	$	65.6	$	102.3	$	113.6
Additions charged to income tax expense	5.1		6.0		3.1
Reductions credited to income tax expense	(1.9)		(2.8)		(3.0)
Changes to other comprehensive income or loss and other	(5.1)		(39.9)		(11.4)
Ending balance	$	63.7	$	65.6	$	102.3

Schedule of Unrecognized Tax Benefits

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

	Fiscal  2024		Fiscal  2023		Fiscal  2022
Beginning balance	$	178.8	$	216.0	$	276.0
Increase related to tax positions taken in the current year	6.4		9.6		5.0
Increase related to tax positions taken in prior years	—		—		2.1
Decrease related to tax position taken in prior years	(111.8)		(0.9)		—
Decrease related to settlements with taxing authorities	(2.1)		(5.6)		(20.7)
Decrease related to lapse of statute of limitations	(13.9)		(40.3)		(46.4)
Ending balance	$	57.4	$	178.8	$	216.0