INCOME TAXES (Tables)

12 Months Ended

Feb. 25, 2017

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



	2017			2016			2015
Current
Federal	$	(25	)	$	25		$	(22	)
State	6			—			(6		)
Total current	(19		)	25			(28		)
Deferred	(1		)	(1		)	15
Total income tax (benefit) provision	$	(20	)	$	24		$	(13	)

Difference Between Actual Tax Provision and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Losses Before Income Taxes

The difference between the actual tax provision and the tax provision computed by applying the statutory federal income tax rate to Earnings from continuing operations before income taxes is attributable to the following:



	2017			2016			2015
Federal taxes based on statutory rate	$	3		$	38		$	4
State income taxes, net of federal benefit	(1		)	2			(3		)
Tax contingency	(1		)	(9		)	(2		)
Change in valuation allowance	1			4			—
Pension	(9		)	(4		)	(7		)
Deferred tax adjustment	(9		)	—			—
Other	(4		)	(7		)	(5		)
Total income tax (benefit) provision	$	(20	)	$	24		$	(13	)

Deferred Tax Assets and Liabilities

Supervalu’s deferred tax assets and liabilities consisted of the following:



	2017			2016
Deferred tax assets:
Compensation and benefits	$	163		$	235
Self-insurance	16			27
Property, plant and equipment and capitalized lease assets	39			47
Loss on sale of discontinued operations	1,174			1,388
Net operating loss carryforwards	15			15
Other	76			83
Gross deferred tax assets	1,483			1,795
Valuation allowance	(1,196		)	(1,408		)
Total deferred tax assets	287			387
Deferred tax liabilities:
Property, plant and equipment and capitalized lease assets	(92		)	(108		)
Inventories	(15		)	(6		)
Intangible assets	(7		)	(24		)
Other	(8		)	(21		)
Total deferred tax liabilities	(122		)	(159		)
Net deferred tax assets	$	165		$	228

Net deferred tax assets are recorded in the Consolidated Balance Sheet as follows:



	2017		2016
Deferred tax assets	$	165	$	238
Long-term assets of discontinued operations	—		(10		)
Net deferred tax assets	165		228

Changes in Company's Unrecognized Tax Benefits

Changes in Supervalu’s unrecognized tax positions consisted of the following:



	2017			2016			2015
Beginning balance	$	70		$	94		$	76
Increase based on tax positions related to the current year	7			5			15
Decrease based on tax positions related to the current year	—			—			—
Increase based on tax positions related to prior years	—			—			15
Decrease based on tax positions related to prior years	(15		)	(23		)	(4		)
Decrease related to settlements with taxing authorities	1			—			(3		)
Decrease due to lapse of statute of limitations	(4		)	(6		)	(5		)
Ending balance	$	59		$	70		$	94