Company-Owned Life Insurance

12 Months Ended

Feb. 24, 2017

Company-Owned Life Insurance [Abstract]

COMPANY-OWNED LIFE INSURANCE

Our investments in company-owned life insurance (“COLI”) policies are recorded at their net cash surrender value.

Our investments in COLI policies are intended to be utilized as a long-term funding source for post-retirement medical benefits, deferred compensation and defined benefit pension plan obligations, which as of February 24, 2017 aggregated approximately $146, with a related deferred tax asset of approximately $54. The designations of our COLI investments as funding sources for our benefit obligations do not result in these investments representing a committed funding source for these obligations. They are subject to claims from creditors, and we can redesignate them to another purpose at any time.

The costs associated with the long-term benefit obligations that the investments are intended to fund are recorded in Operating expenses on the Consolidated Statements of Income. As these costs may exceed the net returns in cash surrender value, normal insurance expenses and any death benefit gains related to our investments in COLI policies (“COLI income”), we record all COLI income in Operating expenses on the Consolidated Statements of Income. COLI income recorded in Operating expenses on the Consolidated Statements of Income totaled $9.5 in 2017, $0.8 in 2016 and $5.8 in 2015.

The balances of our COLI investments as of February 24, 2017 and February 26, 2016 were as follows:



Type	Ability to Choose Investments	Net Return	Target Asset Allocation as of February 24, 2017	Net Cash Surrender Value
Type	Ability to Choose Investments	Net Return	Target Asset Allocation as of February 24, 2017	February 24, 2017		February 26, 2016
Whole life COLI policies	No ability	A rate of return set periodically by the insurance companies	Not applicable	$	125.6	$	121.7
Variable life COLI policies	Can allocate across a set of choices provided by the insurance companies	Fluctuates depending on performance of underlying investments	40% fixed income; 60% equity	43.2		38.7
				$	168.8	$	160.4