Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.1.9
Income Taxes (Tables)
 12 Months Ended
Feb. 28, 2015
Income Tax Disclosure [Abstract]  
Income before income taxes
Income before income taxes was generated as follows:
 
For the Years Ended
 
February 28,
2015
 
February 28,
2014
 
February 28,
2013
(in millions)
 
 
 
 
 
Domestic
$
481.6

 
$
2,050.8

 
$
369.7

Foreign
698.0

 
151.5

 
146.7

 
$
1,179.6

 
$
2,202.3

 
$
516.4

Components of income tax provision (benefit)
The income tax provision consisted of the following:
 
For the Years Ended
 
February 28,
2015
 
February 28,
2014
 
February 28,
2013
(in millions)
 
 
 
 
 
Current
 
 
 
 
 
Federal
$
195.0

 
$
141.7

 
$
47.8

State
20.1

 
18.5

 
11.2

Foreign
49.0

 
57.4

 
30.4

Total current
264.1

 
217.6

 
89.4

 
 
 
 
 
 
Deferred
 
 
 
 
 
Federal
84.6

 
61.4

 
42.7

State
4.8

 
4.4

 
(4.9
)
Foreign
(10.1
)
 
(24.2
)
 
1.4

Total deferred
79.3

 
41.6

 
39.2

Income tax provision
$
343.4

 
$
259.2

 
$
128.6

Significant components of deferred tax assets (liabilities)
Significant components of deferred tax assets (liabilities) consist of the following:
 
February 28,
2015
 
February 28,
2014
(in millions)
 
 
 
Deferred tax assets
 
 
 
Stock-based compensation
$
51.9

 
$
47.3

Net operating losses
13.3

 
9.1

Insurance accruals
3.4

 
3.8

Derivative instruments
3.4

 
—

Employee benefits
2.7

 
2.6

Other accruals
50.6

 
55.3

Gross deferred tax assets
125.3

 
118.1

Valuation allowances
(35.3
)
 
(27.7
)
Deferred tax assets, net
90.0

 
90.4

 
 
 
 
Deferred tax liabilities
 
 
 
Intangible assets
(517.9
)
 
(456.3
)
Property, plant and equipment
(263.2
)
 
(285.9
)
Provision for unremitted earnings
(72.6
)
 
(62.2
)
Investments in equity method investees
(25.1
)
 
(24.0
)
Inventory
(1.1
)
 
(4.9
)
Derivative instruments
—

 
(0.1
)
Total deferred tax liabilities
(879.9
)
 
(833.4
)
Deferred tax liabilities, net
$
(789.9
)
 
$
(743.0
)
Amounts recognized in balance sheets
Amounts recognized on our balance sheets consist of:
 
February 28,
2015
 
February 28,
2014
(in millions)
 
 
 
Current deferred tax assets
$
25.4

 
$
20.4

Long-term deferred tax assets
4.4

 
—

Current deferred tax liabilities
(0.8
)
 
(0.8
)
Long-term deferred tax liabilities
(818.9
)
 
(762.6
)
 
$
(789.9
)
 
$
(743.0
)
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, 2015
 
February 28, 2014
 
February 28, 2013
 
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
$
412.8

 
35.0
%
 
$
770.8

 
35.0
%
 
$
180.7

 
35.0
%
State and local income taxes, net of federal income tax benefit
16.1

 
1.4
%
 
14.8

 
0.7
%
 
4.1

 
0.8
%
Net operating loss valuation allowance
11.1

 
0.9
%
 
16.3

 
0.8
%
 
3.7

 
0.7
%
Earnings of subsidiaries taxed at other than U.S. statutory rate
(86.4
)
 
(7.3
%)
 
(61.2
)
 
(2.8
%)
 
(59.6
)
 
(11.5
%)
Impairment of nondeductible goodwill
—

 
—
%
 
97.5

 
4.4
%
 
—

 
—
%
Gain on remeasurement to fair value of equity method investment
—

 
—
%
 
(574.7
)
 
(26.1
%)
 
—

 
—
%
Miscellaneous items, net
(10.2
)
 
(0.9
%)
 
(4.3
)
 
(0.2
%)
 
(0.3
)
 
(0.1
%)
Income tax provision at effective rate
$
343.4

 
29.1
%
 
$
259.2

 
11.8
%
 
$
128.6

 
24.9
%
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,
2015
 
February 28,
2014
 
February 28,
2013
(in millions)
 
 
 
 
 
Balance as of March 1
$
101.5

 
$
100.6

 
$
92.0

Increases as a result of tax positions taken during a prior period
0.1

 
2.3

 
1.3

Decreases as a result of tax positions taken during a prior period
(4.0
)
 
(3.3
)
 
(9.5
)
Increases as a result of tax positions taken during the current period
7.7

 
11.1

 
19.5

Decreases related to settlements with tax authorities
(13.9
)
 
(6.7
)
 
(0.3
)
Decreases related to lapse of applicable statute of limitations
(5.9
)
 
(2.5
)
 
(2.4
)
Balance as of last day of February
$
85.5

 
$
101.5

 
$
100.6