INCOME TAXES (Tables)

12 Months Ended

Feb. 28, 2026

Schedule of Components of Income Tax Expense

The components of income tax expense consisted of the following (in millions):


	Fiscal 2025		Fiscal 2024		Fiscal 2023
Current
Federal (1)	$	206.4	$	228.9	$	348.2
State (2)	51.3		46.0		56.4
Foreign	1.4		1.3		1.0
Total Current	259.1		276.2		405.6

Deferred
Federal	(174.2)		(11.8)		(83.1)
State	(34.0)		(92.9)		31.7
Foreign	(0.5)		(0.4)		(61.2)
Total Deferred	(208.7)		(105.1)		(112.6)
Income tax expense	$	50.4	$	171.1	$	293.0

(1) Federal current tax expense is net of $0.3 million, $0.3 million and $0.3 million tax benefit of net operating losses ("NOL") in fiscal 2025, fiscal 2024 and fiscal 2023, respectively.

(2) There were no state tax benefits of NOLs in fiscal 2025 and fiscal 2023. In fiscal 2024, state current tax expense is net of $1.0 million tax benefit of NOLs.

Schedule of Effective Income Tax Rate Reconciliation

The difference between the actual tax provision and the tax provision computed by applying the statutory federal income tax rate of 21.0% to Income before income taxes was attributable to the following (in millions):


	Fiscal 2025				Fiscal 2024				Fiscal 2023
	Amount		Percent		Amount		Percent		Amount		Percent
U.S. federal tax at statutory rate	$	56.2	21.0	%	$	237.3	21.0	%	$	333.7	21.0	%
State and local income taxes, net of federal income tax effect (1)	10.4		3.9		51.9		4.6		66.3		4.2
Tax credits
Research and development credit	(11.9)		(4.4)		(12.9)		(1.1)		(20.6)		(1.3)
Employee tax credits	(8.5)		(3.2)		(12.3)		(1.1)		(20.6)		(1.3)
Other credits	(0.5)		(0.2)		(0.6)		(0.1)		(0.6)		—
Changes in federal valuation allowances	2.2		0.8		2.7		0.2		—		—
Non-taxable or non-deductible items
Non-deductible legal settlements (2)	20.4		7.6		—		—		—		—
Non-deductible executive compensation	11.0		4.1		10.1		0.9		10.1		0.6
Charitable donations	(12.2)		(4.6)		(12.7)		(1.1)		(12.7)		(0.8)
Other non-taxable or non-deductible items	1.6		0.6		2.6		0.2		6.6		0.4
Changes in unrecognized tax benefits	(9.2)		(3.4)		(95.2)		(8.4)		(67.3)		(4.2)
Other adjustments
Gain on purchase of transferable credits	(9.4)		(3.5)		—		—		(2.5)		(0.2)
Other	0.3		0.1		0.2		—		0.6		—
Income tax expense	$	50.4	18.8	%	$	171.1	15.1	%	$	293.0	18.4	%

(1) State taxes in California and Oregon made up the majority (greater than 50 percent) of the tax effect in this category.

(2) Represents the estimated future non-deductible payments related to the Opioid Settlement Framework. Refer to Note 12 for additional information.

Schedule of Cash Flow, Supplemental Disclosures

The amounts of cash paid (refunds received) for income taxes was as follows:


	Fiscal 2025		Fiscal 2024		Fiscal 2023
Federal	$	214.7	$	209.6	$	321.2
California	15.8		(87.4)		20.7
Oregon	*		11.2		*
Illinois	*		10.0		*
Other States	23.7		23.7		62.5
Foreign	1.4		1.3		1.0
Net cash paid for income taxes	$	255.6	$	168.4	$	405.4

* The disclosure threshold of 5% was applied separately to each year. Amounts for these jurisdictions are below the threshold for the period presented.

Schedule of Deferred Tax Assets and Liabilities

The Company's deferred tax assets and liabilities consisted of the following (in millions):


	February 28, 2026		February 22, 2025
Deferred tax assets:
Lease obligations	$	1,768.2	$	1,775.3
Self-Insurance	315.5		312.8
Compensation and benefits	199.9		192.2
Pension & postretirement benefits	181.3		194.5
Legal settlements (1)	176.2		—
Net operating loss	58.5		63.7
Tax credits	6.5		5.7
Other	83.1		71.3
Gross deferred tax assets	2,789.2		2,615.5
Less: valuation allowance	(61.9)		(63.7)
Total deferred tax assets	2,727.3		2,551.8

Deferred tax liabilities:
Operating lease assets	1,569.8		1,587.4
Depreciation and amortization	1,320.9		1,302.3
Inventories	382.7		401.7
Other	84.5		84.5
Total deferred tax liabilities	3,357.9		3,375.9

Net deferred tax liability	$	(630.6)	$	(824.1)

Noncurrent deferred tax asset	$	—	$	—
Noncurrent deferred tax liability	(630.6)		(824.1)
Total	$	(630.6)	$	(824.1)

(1) Represents the estimated future deductible payments related to the Opioid Settlement Framework. Refer to Note 12 for additional information.

Schedule of Valuation Allowance Activity

The valuation allowance activity on deferred tax assets was as follows (in millions):


	February 28, 2026		February 22, 2025		February 24, 2024
Beginning balance	$	63.7	$	65.6	$	102.3
Additions charged to income tax expense	2.7		5.1		6.0
Reductions credited to income tax expense	(1.4)		(1.9)		(2.8)
Changes to other comprehensive income or loss and other	(3.1)		(5.1)		(39.9)
Ending balance	$	61.9	$	63.7	$	65.6

Schedule of Unrecognized Tax Benefits

Changes in the Company's unrecognized tax benefits consisted of the following (in millions):


	Fiscal 2025		Fiscal 2024		Fiscal 2023
Beginning balance	$	57.4	$	178.8	$	216.0

Increase related to tax positions taken in the current year	6.1		6.4		9.6

Decrease related to tax position taken in prior years	—		(111.8)		(0.9)

Decrease related to settlements with taxing authorities	—		(2.1)		(5.6)
Decrease related to lapse of statute of limitations	(2.3)		(13.9)		(40.3)
Ending balance	$	61.2	$	57.4	$	178.8