Income Taxes (Tables)

12 Months Ended

Feb. 28, 2013

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

- 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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