v3.23.1
Provision for Income Taxes (Tables)
12 Months Ended
Feb. 26, 2022
Income Tax Disclosure [Abstract]  
Components of the Provision for Income Taxes
The components of the (benefit) provision for income taxes are as follows:
 
    
Fiscal Year Ended
 
(in thousands)
  
February 26,
2022
    
February 27,
2021
    
February 29,
2020
 
Current:
                          
Federal
  
$
(43,740
   $ (336,506    $ 2,455  
State and local
  
 
3,397
 
     1,211        (7,973
    
 
 
    
 
 
    
 
 
 
    
 
(40,343
     (335,295      (5,518
    
 
 
    
 
 
    
 
 
 
Deferred:
                          
Federal
  
 
73,006
 
     150,861        (124,578
State and local
  
 
54,304
 
     (1,555      (20,941
    
 
 
    
 
 
    
 
 
 
    
 
127,310
 
     149,306        (145,519
    
 
 
    
 
 
    
 
 
 
    
$
86,967
 
   $ (185,989    $ (151,037
    
 
 
    
 
 
    
 
 
 
Schedule of Deferred Tax Assets and Liabilities The significant components of the Company’s deferred tax assets and liabilities consist of the following:
 
(in thousands)
  
February 26,
2022
    
February 27,
2021
 
Deferred tax assets:
                 
Inventories
  
$
4,077
 
   $ 13,040  
Operating lease liabilities
  
 
473,397
 
     484,290  
Insurance
  
 
6,416
 
     9,086  
Stock-based compensation
  
 
1,592
 
     1,014  
Merchandise credits and gift card liabilities
  
 
56,690
 
     52,584  
Accrued expenses
  
 
23,412
 
     31,914  
Intangibles
  
 
1,685
 
     1,008  
Goodwill
  
 
90
 
     1,596  
Carryforwards and other tax credits
  
 
189,746
 
     86,914  
Other
  
 
34,991
 
     34,104  
Valuation allowance:
  
 
(249,529
     (26,011
     
Deferred tax liabilities:
                 
Depreciation
  
 
(146,970
     (105,649
Prepaid expenses
  
 
(1,155
     (26,356
Operating lease assets
  
 
(376,079
     (409,535
Other
  
 
(18,499
     (17,977
    
 
 
    
 
 
 
 
  
$
(136
   $ 130,022  
    
 
 
    
 
 
 
Summary of Gross Unrecognized Tax Benefits from Uncertain Tax Positions Activity
The following table summarizes the activity related to the gross unrecognized tax benefits from uncertain tax positions:
 
(in thousands)
  
February 26,
2022
    
February 27,
2021
 
Balance at beginning of year
  
$
105,749
 
   $ 51,781  
Increase related to current year positions
  
 
1,125
 
     69,106  
Decrease related to prior year positions
  
 
(1,902
     (2,797
Settlements
  
 
(2,340
     (4,981
Lapse of statute of limitations
  
 
(7,114
     (7,360
    
 
 
    
 
 
 
Balance at end of year
  
$
95,518
 
   $ 105,749  
    
 
 
    
 
 
 
Schedule of Effective Income Tax Rate Reconciliation
The following table summarizes the reconciliation between the effective income tax rate and the federal statutory rate:
 
    
Fiscal Year Ended
 
    
February 26,
2022
   
February 27,
2021
   
February 29,
2020
 
Federal statutory rate
  
 
21.00
    21.00     21.00
State income tax rate, net of federal impact
  
 
3.87
 
    3.94       4.28  
Uncertain tax positions
  
 
2.16
 
    1.63       1.33  
Goodwill
non-deductible
impairment charges
  
 
—  
 
    —         (4.84
Tax deficiencies related to stock-based compensation
  
 
(0.81
    (3.18     (3.07
Tax credits
  
 
0.38
 
    0.41       0.49  
CARES Act
  
 
0.94
 
    35.98    
 
—  
 
Valuation Allowance
  
 
(48.01
    (7.74  
 
—  
 
Canadian Branch Earnings
  
 
1.60
 
    0.78       0.90  
Other
  
 
0.47
 
    2.35       (0.34
    
 
 
   
 
 
   
 
 
 
    
 
(18.40
)% 
    55.17     19.75