v3.26.1
LEASE
 12 Months Ended
Feb. 28, 2026
Lease  
LEASE

Note 10 — LEASE

 

A. Lessee arrangements

 

As a lessee, the Company leases buildings, and other equipment to support operations. These leases can be categorized into operating and finance leases.

 

The balances for the operating leases and finance leases where the Company is the lessee are presented as follows:

 

                           
    Classification   As of
February 28,
2025		     As of
February 28,
2026		     As of
February 28,
2026		  
        JPY     JPY     US$  
        (In thousands)  
Assets                            
Operating lease assets   Operating lease right-of-use assets     3,909,012       3,834,503       24,572  
Finance lease assets   Property and equipment, net     102,045       151,091       968  
Total lease assets         4,011,057       3,985,594       25,540  
                             
Liabilities                            
Current                            
Operating   Operating lease liabilities, current     881,838       1,206,136       7,729  
Finance   Accrued expenses and other current liabilities     49,423       61,779       396  
Noncurrent                            
Operating   Operating lease liabilities, non-current     3,214,665       2,880,319       18,458  
Finance   Other non-current liabilities     58,171       95,744       614  
Total lease liabilities         4,204,097       4,243,978       27,197  

 

The components of lease costs were as follows:

 

                               
    For the Fiscal Years Ended  
    February 29,
2024		     February 28,
2025		     February 28,
2026		     February 28,
2026		  
    JPY     JPY     JPY     US$  
    (In thousands)  
Finance lease costs                                
Amortization of right-of-use assets     48,943       55,910       64,634       414  
Interest on lease liabilities     900       1,019       1,193       8  
Total finance lease costs     49,843       56,929       65,827       422  
Operating lease costs     666,229       953,253       1,190,465       7,629  
Short-term lease costs     12,641       13,565       13,897       89  
Total lease costs     728,713       1,023,747       1,270,189       8,140  

 

Other supplemental information related to lease were as follows:

 

                               
    For the Fiscal Years Ended  
    February 29,
2024		     February 28,
2025		     February 28,
2026		     February 28,
2026		  
    JPY     JPY     JPY     US$  
    (In thousands)  
Cash paid for amounts included in the measurement of lease liabilities:                                
Operating cashflows from operating leases     671,453       715,265       1,091,334       6,993  
Financing cashflows from finance leases     48,807       56,267       65,158       418  
Operating lease right-of-use assets obtained in exchange for operating lease liabilities     126,623       3,127,334       1,081,311       6,929  
Finance lease right-of-use assets obtained in exchange for finance lease liabilities     94,994       25,629       117,164       751  
Remeasurement of operating lease liabilities and right-of-use assets due to modifications     8,092       -       7,674       49  
Remeasurement of finance lease liabilities and right-of-use assets due to modifications     -       -       13,529       87  
                                 
Weighted average remaining lease term (years)                                
Operating leases     3.18       5.07       4.19       4.19  
Finance leases     2.88       2.41       2.81       2.81  
                                 
Weighted average discount rate (per annum)                                
Operating leases     0.76 %     0.75 %     0.79 %     0.79 %
Finance leases     0.84 %     0.86 %     0.82 %     0.82 %

 

As of February 28, 2026, future minimum lease payments under finance lease liabilities and operating lease liabilities were as follows:

 

                               
    Operating
Lease		     Finance
Lease		     Operating
Lease		     Finance
Lease		  
    JPY     JPY     US$     US$  
    (In thousands)  
Fiscal year                                
2027     1,233,886       62,786       7,907       402  
2028     1,033,576       48,989       6,623       314  
2029     726,336       34,155       4,655       219  
2030     575,550       13,396       3,688       86  
2031     441,231       -       2,827       -  
Thereafter     143,317       -       918       -  
Total lease payments     4,153,896       159,326       26,618       1,021  
Less: Imputed Interest     (67,441 )     (1,803 )     (431 )     (11 )
Present value of lease liabilities     4,086,455       157,523       26,187       1,010