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 9.

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

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.


	Three Months Ended May 31
(In thousands)	2026		2025
Operating lease cost (1)	$	21,945	$	24,434
Finance lease cost:
Depreciation of lease assets	4,523		4,601
Interest on lease liabilities	5,844		6,292
Total finance lease cost	10,367		10,893
Total lease cost	$	32,312	$	35,327


		As of May 31		As of February 28
(In thousands)	Classification	2026		2026
Assets:
Operating lease assets	Operating lease assets	$	451,441	$	459,514
Finance lease assets	Property and equipment, net (1)	141,687		145,179
Total lease assets		$	593,128	$	604,693
Liabilities:
Current:
Operating leases	Current portion of operating lease liabilities	$	56,988	$	57,341
Finance leases	Accrued expenses and other current liabilities	18,027		16,779
Long-term:
Operating leases	Operating lease liabilities, excluding current portion	453,352		464,696
Finance leases	Other liabilities	171,554		175,548
Total lease liabilities		$	699,921	$	714,364


	As of May 31		As of February 28
Lease Term and Discount Rate	2026		2026
Weighted Average Remaining Lease Term (in years)
Operating leases	15.62		15.56
Finance leases	13.88		13.99

Weighted Average Discount Rate
Operating leases	5.40	%	5.37	%
Finance leases	16.37	%	16.44	%


	Three Months Ended May 31
(In thousands)	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	25,569	$	26,226
Operating cash flows from finance leases	$	5,763	$	6,119
Financing cash flows from finance leases	$	4,084	$	3,443

Lease assets obtained in exchange for lease obligations:
Operating leases	$	2,493	$	3,326
Finance leases	$	1,031	$	867


	As of May 31, 2026
(In thousands)	Operating Leases		Finance Leases
Fiscal 2027, remaining	$	62,426	$	30,022
Fiscal 2028	79,973		35,990
Fiscal 2029	58,260		38,840
Fiscal 2030	48,769		28,462
Fiscal 2031	41,736		25,161
Thereafter	499,985		227,736
Total lease payments	791,149		386,211
Less: interest	(280,809)		(196,630)
Present value of lease liabilities	$	510,340	$	189,581