Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
 12 Months Ended
Feb. 28, 2014
Income Tax Disclosure [Abstract]  
Income before income taxes
Income before income taxes was generated as follows:
 
For the Years Ended
 
February 28, 2014
 
February 28, 2013
 
February 29, 2012
(in millions)
 
 
 
 
 
Domestic
$
2,050.8

 
$
369.7

 
$
441.0

Foreign
151.5

 
146.7

 
93.0

 
$
2,202.3

 
$
516.4

 
$
534.0

Components of income tax provision (benefits)
The income tax provision (benefit) consisted of the following:
 
For the Years Ended
 
February 28, 2014
 
February 28, 2013
 
February 29, 2012
(in millions)
 
 
 
 
 
Current:
 
 
 
 
 
Federal
$
141.7

 
$
47.8

 
$
85.2

State
18.5

 
11.2

 
(45.9
)
Foreign
57.4

 
30.4

 
1.7

Total current
217.6

 
89.4

 
41.0

 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
61.4

 
42.7

 
76.6

State
4.4

 
(4.9
)
 
(20.5
)
Foreign
(24.2
)
 
1.4

 
(8.1
)
Total deferred
41.6

 
39.2

 
48.0

Income tax provision
$
259.2

 
$
128.6

 
$
89.0

Significant components of deferred tax assets (liabilities)
Significant components of deferred tax assets (liabilities) consist of the following:
 
February 28, 2014
 
February 28, 2013
(in millions)
 
 
 
Deferred tax assets:
 
 
 
Stock-based compensation
$
47.3

 
$
51.1

Net operating losses
9.1

 
23.5

Insurance accruals
3.8

 
4.7

Employee benefits
2.6

 
7.9

Other accruals
55.3

 
53.1

Gross deferred tax assets
118.1

 
140.3

Valuation allowances
(27.7
)
 
(14.6
)
Deferred tax assets, net
90.4

 
125.7

 
 
 
 
Deferred tax liabilities:
 
 
 
Intangible assets
(456.3
)
 
(408.6
)
Property, plant and equipment
(285.9
)
 
(207.0
)
Provision for unremitted earnings
(62.2
)
 
(44.9
)
Investments in equity method investees
(24.0
)
 
(41.3
)
Inventory
(4.9
)
 
(6.6
)
Derivative instruments
(0.1
)
 
(1.4
)
Total deferred tax liabilities
(833.4
)
 
(709.8
)
Deferred tax liabilities, net
$
(743.0
)
 
$
(584.1
)
Amounts recognized in the Consolidated Balance Sheets
Amounts recognized in the Consolidated Balance Sheets consist of:
 
February 28, 2014
 
February 28, 2013
(in millions)
 
 
 
Current deferred tax assets
$
20.4

 
$
15.8

Long-term deferred tax assets
—

 
0.2

Current deferred tax liabilities
(0.8
)
 
(0.5
)
Long-term deferred tax liabilities
(762.6
)
 
(599.6
)
 
$
(743.0
)
 
$
(584.1
)
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, 2014
 
February 28, 2013
 
February 29, 2012
 
Amount
 
% of
Pretax
Income
 
Amount
 
% of
Pretax
Income
 
Amount
 
% of
Pretax
Income
(in millions, except % of pretax income data)
 
 
 
 
 
 
 
 
 
 
 
Income tax provision at statutory rate
$
770.8

 
35.0

 
$
180.7

 
35.0

 
$
186.9

 
35.0

State and local income taxes, net of federal income tax benefit
14.8

 
0.7

 
4.1

 
0.8

 
(43.2
)
 
(8.1
)
Impairment of nondeductible goodwill
97.5

 
4.4

 
—

 
—

 
—

 
—

Net operating loss valuation allowance
16.3

 
0.8

 
3.7

 
0.7

 
3.6

 
0.7

Gain on remeasurement to fair value of equity method investment
(574.7
)
 
(26.1
)
 
—

 
—

 
—

 
—

Earnings of subsidiaries taxed at other than U.S. statutory rate
(61.2
)
 
(2.8
)
 
(59.6
)
 
(11.5
)
 
(66.7
)
 
(12.5
)
Miscellaneous items, net
(4.3
)
 
(0.2
)
 
(0.3
)
 
(0.1
)
 
8.4

 
1.6

Income tax provision at effective rate
$
259.2

 
11.8

 
$
128.6

 
24.9

 
$
89.0

 
16.7

Reconciliation of beginning and ending unrecognized tax benefit liabilities
A reconciliation of the beginning and ending unrecognized tax benefit liabilities is as follows:
 
For the Years Ended
 
February 28, 2014
 
February 28, 2013
 
February 29, 2012
(in millions)
 
 
 
 
 
Balance as of March 1
$
100.6

 
$
92.0

 
$
154.4

Increases as a result of tax positions taken during a prior period
2.3

 
1.3

 
11.0

Decreases as a result of tax positions taken during a prior period
(3.3
)
 
(9.5
)
 
(37.0
)
Increases as a result of tax positions taken during the current period
11.1

 
19.5

 
29.4

Decreases related to settlements with tax authorities
(6.7
)
 
(0.3
)
 
(59.5
)
Decreases related to lapse of applicable statute of limitations
(2.5
)
 
(2.4
)
 
(6.3
)
Balance as of last day of February
$
101.5

 
$
100.6

 
$
92.0