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Leases
 12 Months Ended
Feb. 29, 2024
Leases [Abstract]  
Leases of Lessee Disclosure LEASE COMMITMENTS
Our leases primarily consist of operating and finance leases related to retail stores, office space, land and equipment. We also have stores subject to sale-leaseback transactions that do not qualify for sale accounting and are accounted for as financing obligations. For more information on these financing obligations see Note 12.
The initial term for real property leases is typically 5 to 20 years. For equipment leases, the initial term generally ranges from 3 to 8 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 20 years or more. We include options to renew (or terminate) in our lease term, and as part of our right-of-use (“ROU”) assets and lease liabilities, when it is reasonably certain that we will exercise that option.
ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We include variable lease payments in the initial measurement of ROU assets and lease liabilities only to the extent they depend on an index or rate. Changes in such indices or rates are accounted for in the period the change occurs, and do not result in the remeasurement of the ROU asset or liability. We are also responsible for payment of certain real estate taxes, insurance and other expenses on our leases. These amounts are generally considered to be variable and are not included in the measurement of the ROU asset and lease liability. We generally account for non-lease components, such as maintenance, separately from lease components. For certain equipment leases, we apply a portfolio approach to account for the lease assets and liabilities.
Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with a term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.
The components of lease expense were as follows:
Years Ended February 29 or 28
(In thousands)202420232022
Operating lease cost (1)
$89,801 $90,925 $75,629 
Finance lease cost:
Depreciation of lease assets20,010 16,039 13,230 
Interest on lease liabilities25,724 21,969 17,015 
Total finance lease cost45,734 38,008 30,245 
Total lease cost$135,535 $128,933 $105,874 

(1)     Includes short-term leases and variable lease costs, which are immaterial.

Supplemental balance sheet information related to leases was as follows:
As of February 29 or 28
(In thousands)Classification20242023
Assets:
Operating lease assetsOperating lease assets$520,717 $545,677 
Finance lease assets
Property and equipment, net (1)
174,998 145,372 
Total lease assets$695,715 $691,049 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$57,161 $53,287 
Finance leasesAccrued expenses and other current liabilities20,877 18,788 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion496,210 523,828 
Finance leasesOther liabilities198,759 165,135 
Total lease liabilities$773,007 $761,038 

(1)     Finance lease assets are recorded net of accumulated depreciation of $55.5 million as of February 29, 2024 and $46.7 million as of February 28, 2023.

Lease term and discount rate information related to leases was as follows:
As of February 29 or 28
Lease Term and Discount Rate20242023
Weighted Average Remaining Lease Term (in years)
Operating leases16.0716.35
Finance leases11.4310.84
Weighted Average Discount Rate
Operating leases5.05 %4.91 %
Finance leases17.16 %19.34 %
Supplemental cash flow information related to leases was as follows:
Years Ended February 29 or 28
(In thousands)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$88,704 $89,321 $72,371 
Operating cash flows from finance leases$24,782 $19,371 $11,194 
Financing cash flows from finance leases$16,674 $12,200 $11,923 
Lease assets obtained in exchange for lease obligations:
Operating leases$30,746 $58,121 $50,911 
Finance leases$51,660 $37,931 $32,052 

Maturities of lease liabilities were as follows:

As of February 29, 2024
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2025$83,110 $45,669 
Fiscal 202677,748 47,724 
Fiscal 202771,393 43,914 
Fiscal 202867,246 37,051 
Fiscal 202945,400 29,808 
Thereafter517,307 229,689 
Total lease payments862,204 433,855 
Less: interest(308,833)(214,219)
Present value of lease liabilities$553,371 $219,636 

(1) Lease payments exclude $5.1 million of legally binding minimum lease payments for leases signed but not yet commenced.