Income Taxes (Tables)

12 Months Ended

Feb. 22, 2013

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes on income before income taxes consists of:



Provision for Income Taxes—Expense	Year Ended
Provision for Income Taxes—Expense	February 22, 2013			February 24, 2012			February 25, 2011
Current income taxes:
Federal	$	12.1		$	—		$	3.3
State and local	1.4			0.4			1.0
Foreign	5.6			11.3			15.4
	19.1			11.7			19.7
Deferred income taxes:
Federal	(48.8		)	18.0			17.4
State and local	3.1			2.5			1.2
Foreign	42.7			(6.9		)	(7.3		)
	(3.0		)	13.6			11.3
Income tax expense	$	16.1		$	25.3		$	31.0

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Income taxes were based on the following sources of income (loss) before income tax expense:



Source of Income (Loss) Before Income Tax Expense	Year Ended
Source of Income (Loss) Before Income Tax Expense	February 22, 2013			February 24, 2012		February 25, 2011
Domestic	$	83.8		$	63.8	$	39.7
Foreign	(28.9		)	18.2		11.7
	$	54.9		$	82.0	$	51.4

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The total income tax expense we recognized is reconciled to that computed by applying the U.S. federal statutory tax rate of 35% as follows:



Income Tax Provision Reconciliation	Year Ended
Income Tax Provision Reconciliation	February 22, 2013			February 24, 2012			February 25, 2011
Tax expense at the U.S. federal statutory rate	$	19.2		$	28.7		$	18.0
Foreign tax credits (1)	(57.6		)	1.3			5.0
Valuation allowance provisions and adjustments (2)	40.0			0.7			1.2
Goodwill impairment (3)	12.3			—			—
Healthcare reform (4)	—			—			11.4
COLI income (5)	(3.1		)	(2.9		)	(5.7		)
Sale of subsidiary (6)	—			(2.3		)	(1.7		)
State and local income taxes, net of federal	2.9			1.9			1.4
Tax balance adjustments (7)	—			(1.0		)	4.3
Foreign operations, less applicable foreign tax credits (8)	2.5			0.7			(1.5		)
Research tax credit	(1.9		)	(1.6		)	(1.7		)
Tax reserve adjustments	0.7			1.1			—
Other	1.1			(1.3		)	0.3
Total income tax expense recognized	$	16.1		$	25.3		$	31.0

________________________

(1)

In 2013, we converted a wholly owned French holding company from a disregarded entity to a controlled foreign corporation for U.S. tax purposes, and that conversion caused outstanding intercompany debt to be treated as a deemed dividend taxable in the U.S. Foreign taxes paid on the income that generated the deemed dividend exceeded the U.S. tax cost creating an excess foreign tax credit of $56.7. Additionally, other cash dividends received from our Canadian subsidiary resulted in excess foreign tax credits of $0.9. These credits are expected to be utilized $21.0 in 2014 and $36.6 within the allowable 10 year carryfoward period.


(2)	The valuation allowance provisions were based on current year activity, and the valuation allowance adjustments were based on various factors, which are further detailed below.


(3)	The impairment charges related to goodwill recorded in purchase accounting are non-deductible.

(4)

In Q1 2011, the U.S. enacted significant healthcare reform legislation which effectively changed the tax treatment of the federal subsidies received by employers who provide certain prescription drug benefits for retirees (the “Medicare Part D subsidy”) for fiscal years beginning after December 31, 2012. We had previously recorded deferred tax assets based on the liability for post-retirement benefit obligations related to prescription drug benefits for retirees. As a result of the law change during Q1 2011, deferred tax assets were reduced as these obligations will no longer be deductible for purposes of determining taxable income to the extent they are reimbursed by the Medicare Part D subsidy.


(5)	The net returns in cash surrender value, normal insurance expenses and death benefit gains related to our investments in COLI policies are non-taxable.


(6)	In Q2 2012, we completed the sale of PolyVision’s remaining low margin whiteboard fabrication business in Europe to a third party for proceeds totaling $2.3. The transaction included the sale of PolyVision SAS (France) and PolyVision A/S (Denmark). Basis differences resulted in a tax benefit of $2.3.

(7)

The tax balance adjustments in 2011 relate to prior periods. Management has evaluated the relevant qualitative and quantitative factors related to these adjustments and concluded that had the adjustments been recorded in the appropriate period the impact individually and in the aggregate would not have been material to the current or previously reported financial information for any prior fiscal year.


(8)	The foreign operations, less applicable foreign tax credits amount includes the rate differential on foreign operations, U.S. tax cost of foreign branches and the impact of rate reductions in foreign jurisdictions.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The significant components of deferred income taxes are as follows:



Deferred Income Taxes	February 22, 2013			February 24, 2012
Deferred income tax assets:
Employee benefit plan obligations	$	90.7		$	94.7
Foreign and domestic net operating loss carryforwards	85.0			91.4
Reserves and accruals	26.5			33.2
Tax credit carryforwards	60.2			20.5
Other, net	6.1			4.5
Total deferred income tax assets	268.5			244.3
Valuation allowances	(70.4		)	(34.5		)
Net deferred income tax assets	198.1			209.8
Deferred income tax liabilities:
Property, plant and equipment	31.7			37.8
Intangible assets	14.2			21.1
Total deferred income tax liabilities	45.9			58.9
Net deferred income taxes	$	152.2		$	150.9
Net deferred income taxes is comprised of the following components:
Deferred income tax assets—current	$	56.2		$	42.4
Deferred income tax assets—non-current	101.7			110.4
Deferred income tax liabilities—current	—			—
Deferred income tax liabilities—non-current	5.7			1.9

Schedule of Current Taxes Payable or Refundable [Table Text Block]

Income taxes currently payable or refundable are reported on the Consolidated Balance Sheets as follows:



Current Income Taxes	February 22, 2013		February 24, 2012
Other current assets:
Income taxes receivable	$	4.7	$	3.0
Accrued expenses:
Income taxes payable	$	2.7	$	3.1

Summary of Income Tax Contingencies [Table Text Block]

Operating loss and tax credit carryforwards expire as follows:



Year Ending February	Net Operating Loss Carryforwards (Gross)						Tax Effected Net Operating Loss Carryforwards											Tax Credit Carryforwards
Year Ending February	Federal		State		International		Federal		State			International			Total			Tax Credit Carryforwards
2014	$	—	$	—	$	1.8	$	—	$	—		$	0.5		$	0.5		$	—
2015	—		0.3		1.4		—		—			0.4			0.4			—
2016	—		0.1		5.4		—		—			1.6			1.6			—
2017	—		0.1		3.8		—		—			1.1			1.1			—
2018-2033	—		185.9		3.7		—		4.8			0.8			5.6			52.6
No expiration	—		—		236.7		—		1.0			74.8			75.8			7.6
	$	—	$	186.4	$	252.8	—		5.8			79.2			85.0			60.2
Valuation allowances							—		(0.5		)	(66.0		)	(66.5		)	—
Net benefit							$	—	$	5.3		$	13.2		$	18.5		$	60.2

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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