Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
 12 Months Ended
Feb. 28, 2013
Income Tax Disclosure [Abstract]  
Income before income taxes
Income before income taxes was generated as follows:
 
For the Years Ended
 
February 28, 2013
 
February 29, 2012
 
February 28, 2011
(in millions)
 
 
 
 
 
Domestic
$
369.7

 
$
441.0

 
$
946.0

Foreign
146.7

 
93.0

 
(395.0
)
 
$
516.4

 
$
534.0

 
$
551.0

Components of income tax provision (benefit)
The income tax provision (benefit) consisted of the following:
 
For the Years Ended
 
February 28, 2013
 
February 29, 2012
 
February 28, 2011
(in millions)
 
 
 
 
 
Current:
 
 
 
 
 
Federal
$
47.8

 
$
85.2

 
$
(112.9
)
State
11.2

 
(45.9
)
 
21.7

Foreign
30.4

 
1.7

 
11.8

Total current
89.4

 
41.0

 
(79.4
)
 
 
 
 
 
 
Deferred:
 
 
 
 
 
Federal
42.7

 
76.6

 
31.8

State
(4.9
)
 
(20.5
)
 
4.6

Foreign
1.4

 
(8.1
)
 
34.5

Total deferred
39.2

 
48.0

 
70.9

Income tax provision (benefit)
$
128.6

 
$
89.0

 
$
(8.5
)
Significant components of deferred tax assets (liabilities)
Significant components of deferred tax assets (liabilities) consist of the following:
 
February 28, 2013
 
February 29, 2012
(in millions)
 
 
 
Deferred tax assets:
 
 
 
Stock-based compensation
$
51.1

 
$
54.1

Net operating losses
23.5

 
23.0

Employee benefits
7.9

 
6.0

Insurance accruals
4.7

 
8.0

Unrealized foreign exchange
0.6

 
—

Inventory
—

 
14.0

Other accruals
52.5

 
43.7

Gross deferred tax assets
140.3

 
148.8

Valuation allowances
(14.6
)
 
(14.4
)
Deferred tax assets, net
125.7

 
134.4

 
 
 
 
Deferred tax liabilities:
 
 
 
Intangible assets
(408.6
)
 
(388.5
)
Property, plant and equipment
(207.0
)
 
(214.7
)
Provision for unremitted earnings
(44.9
)
 
(45.3
)
Investment in equity method investees
(41.3
)
 
(39.7
)
Inventory
(6.6
)
 
—

Derivative instruments
(1.4
)
 
(1.6
)
Unrealized foreign exchange
—

 
(10.8
)
Total deferred tax liabilities
(709.8
)
 
(700.6
)
Deferred tax liabilities, net
$
(584.1
)
 
$
(566.2
)
Amounts recognized in the Consolidated Balance Sheets
Amounts recognized in the Consolidated Balance Sheets consist of:
 
February 28, 2013
 
February 29, 2012
(in millions)
 
 
 
Current deferred tax assets
$
15.8

 
$
40.1

Long-term deferred tax assets
0.2

 
6.5

Current deferred tax liabilities
(0.5
)
 
(4.1
)
Long-term deferred tax liabilities
(599.6
)
 
(608.7
)
 
$
(584.1
)
 
$
(566.2
)
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, 2013
 
February 29, 2012
 
February 28, 2011
 
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
$
180.7

 
35.0

 
$
186.9

 
35.0

 
$
192.9

 
35.0

State and local income taxes, net of federal income tax benefit
4.1

 
0.8

 
(43.2
)
 
(8.1
)
 
17.1

 
3.1

Net operating loss valuation allowance
3.7

 
0.7

 
3.6

 
0.7

 
46.8

 
8.5

Earnings of subsidiaries taxed at other than U.S. statutory rate
(59.6
)
 
(11.5
)
 
(66.7
)
 
(12.5
)
 
(46.8
)
 
(8.5
)
CWAE Divestiture
(2.5
)
 
(0.5
)
 
1.8

 
0.4

 
(19.7
)
 
(3.6
)
Deduction for investments and loans related to the CWAE Divestiture
—

 
—

 
—

 
—

 
(207.0
)
 
(37.5
)
Impairments and dispositions of nondeductible goodwill, equity method investments and other intangible assets
—

 
—

 
—

 
—

 
21.0

 
3.8

Miscellaneous items, net
2.2

 
0.4

 
6.6

 
1.2

 
(12.8
)
 
(2.3
)
Income tax provision (benefit) at effective rate
$
128.6

 
24.9

 
$
89.0

 
16.7

 
$
(8.5
)
 
(1.5
)
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, 2013
 
February 29, 2012
 
February 28, 2011
(in millions)
 
 
 
 
 
Balance as of March 1
$
92.0

 
$
154.4

 
$
124.0

Increases as a result of tax positions taken during a prior period
1.3

 
11.0

 
9.5

Decreases as a result of tax positions taken during a prior period
(9.5
)
 
(37.0
)
 
(1.8
)
Increases as a result of tax positions taken during the current period
19.5

 
29.4

 
59.5

Decreases related to settlements with tax authorities
(0.3
)
 
(59.5
)
 
(36.0
)
Decreases related to lapse of applicable statute of limitations
(2.4
)
 
(6.3
)
 
(0.8
)
Balance as of last day of February
$
100.6

 
$
92.0

 
$
154.4