XML 84 R45.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Feb. 28, 2021

Income (loss) before income taxes was generated as follows:


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
(in millions)
Domestic	$	495.2	$	(2,230.1)	$	1,615.9
Foreign	2,047.7		1,284.9		2,529.1
	$	2,542.9	$	(945.2)	$	4,145.0

Components of income tax provision (benefit)

The income tax provision (benefit) consisted of the following:


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
(in millions)
Current
Federal	$	74.0	$	66.5	$	4.1
State	19.1		12.1		15.7
Foreign	81.6		108.5		239.2
Total current	174.7		187.1		259.0

Deferred
Federal	152.8		(459.9)		223.9
State	28.3		(118.3)		75.0
Foreign	155.3		(575.5)		128.0
Total deferred	336.4		(1,153.7)		426.9
Income tax provision (benefit)	$	511.1	$	(966.6)	$	685.9

Effective income tax rate reconciliation

A reconciliation of the total tax provision (benefit) to the amount computed by applying the statutory U.S. federal income tax rate to income before provision for (benefit from) income taxes is as follows:


	For the Years Ended
	February 28, 2021				February 29, 2020				February 28, 2019
	Amount		% of Pretax Income (Loss)		Amount		% of Pretax Income (Loss)		Amount		% of Pretax Income (Loss)
(in millions, except % of pretax income (loss) data)
Income tax provision (benefit) at statutory rate	$	534.0	21.0	%	$	(198.5)	21.0	%	$	870.5	21.0	%
State and local income taxes, net of federal income tax benefit (1)	39.0		1.5	%	(82.3)		8.7	%	81.3		2.0	%

Net income tax provision (benefit) from legislative changes (2)	10.9		0.4	%	(547.4)		57.9	%	(37.6)		(0.9	%)
Earnings taxed at other than U.S. statutory rate (3)	(84.4)		(3.2	%)	(46.5)		5.0	%	(81.0)		(1.9	%)

Excess tax benefits from stock-based compensation awards (4)	(29.4)		(1.2	%)	(56.2)		5.9	%	(82.9)		(2.0	%)
Net income tax provision (benefit) recognized for adjustment to valuation allowance	27.1		1.1	%	(32.8)		3.5	%	(74.1)		(1.8	%)
Miscellaneous items, net	13.9		0.5	%	(2.9)		0.3	%	9.7		0.1	%
Income tax provision (benefit) at effective rate	$	511.1	20.1	%	$	(966.6)	102.3	%	$	685.9	16.5	%

(1)Includes differences resulting from adjustments to the current and deferred state effective tax rates.

(2)The year ended February 28, 2021, represents a net income tax (provision) benefit resulting from initiatives under the CARES Act. The year ended February 29, 2020, represents the recognition of a net income tax benefit resulting from the remeasurement of our deferred tax assets in connection with the September 2019 enactment of tax reform in Switzerland. The year ended February 28, 2019, represents the recognition of a net income tax benefit related to the TCJ Act.

(3)Consists of the following (i) difference between the U.S. statutory rate and local jurisdiction tax rates, (ii) the provision for incremental U.S. taxes on earnings of certain foreign subsidiaries offset by foreign tax credits, (iii) the non-U.S. portion of tax provision (benefit) recorded on the net unrealized gain (loss) from the changes in fair value of our investment in Canopy, and (iv) the non-U.S. portion of tax benefits recorded on the Canopy equity in earnings (losses) and related activities.

(4)Represents the recognition of the income tax effect of stock-based compensation awards in the income statement when the awards vest or are settled.

Significant components of deferred tax assets (liabilities)

Significant components of deferred tax assets (liabilities) consist of the following:


	February 28, 2021		February 29, 2020
(in millions)
Deferred tax assets
Intangible assets	$	1,852.0	$	2,045.8
Loss carryforwards	233.1		225.9
Stock-based compensation	30.1		75.6
Lease liabilities	83.1		89.2
Inventory	26.6		32.4




Investments in unconsolidated investees	36.7		106.1
Other accruals	33.7		35.0
Gross deferred tax assets	2,295.3		2,610.0
Valuation allowances	(78.6)		(54.1)
Deferred tax assets, net	2,216.7		2,555.9

Deferred tax liabilities

Property, plant, and equipment	(200.3)		(175.5)

Provision for unremitted earnings	(23.0)		(27.5)



Right-of-use assets	(70.6)		(80.5)
Total deferred tax liabilities	(293.9)		(283.5)
Deferred tax assets (liabilities), net	$	1,922.8	$	2,272.4

Reconciliation of unrecognized tax benefit liabilities

The liability for income taxes associated with uncertain tax positions, excluding interest and penalties, and a reconciliation of the beginning and ending unrecognized tax benefit liabilities is as follows:


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
(in millions)
Balance as of March 1	$	249.4	$	224.3	$	89.3
Increases as a result of tax positions taken during a prior period	3.1		11.4		56.4
Decreases as a result of tax positions taken during a prior period	(15.4)		(14.8)		(1.4)
Increases as a result of tax positions taken during the current period	15.2		29.0		88.8
Decreases related to settlements with tax authorities	(10.2)		(0.1)		(0.8)
Decreases related to lapse of applicable statute of limitations	(6.0)		(0.4)		(8.0)
Balance as of last day of February	$	236.1	$	249.4	$	224.3