v3.26.3
FAIR VALUE MEASUREMENTS
 6 Months Ended
Sep. 12, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The accounting guidance for fair value established a framework for measuring fair value and established a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability at the measurement date. The three levels are defined as follows:
Level 1 - Quoted prices in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and
Level 3 - Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions that market participants would use to value the asset or liability.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following table presents certain assets and liabilities which were measured at fair value on a recurring basis as of September 12, 2026 (in millions):
Fair Value Measurements
TotalQuoted prices in active markets
 for identical assets
(Level 1)		Significant
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)
Assets:
Short-term investments (1)$8.7 $8.6 $0.1 $— 
Non-current investments (2)112.1 9.4 102.7 — 
Derivative contracts (3)7.3 — 7.3 — 
Total$128.1 $18.0 $110.1 $— 
Liabilities:
Derivative contracts (3)$6.6 $— $6.6 $— 
Total$6.6 $— $6.6 $— 
(1) Primarily relates to Mutual Funds (Level 1) and Certificates of Deposit (Level 2). Included in Other current assets.
(2) Primarily relates to investments in Exchange-Traded Funds (Level 1) and U.S. Treasury Notes, Corporate Bonds and certain equity investments (Level 2). Included in Other assets.
(3) Included in Other assets or Other current liabilities.
The following table presents certain assets and liabilities which were measured at fair value on a recurring basis as of February 28, 2026 (in millions):
Fair Value Measurements
TotalQuoted prices in active markets
 for identical assets
(Level 1)		Significant
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)
Assets:
Short-term investments (1)$13.7 $7.8 $5.9 $— 
Non-current investments (2)111.4 8.7 102.7 — 
Derivative contracts (3)3.4 — 3.4 — 
Total$128.5 $16.5 $112.0 $— 
Liabilities:
Derivative contracts (3)$0.1 $— $0.1 $— 
Total$0.1 $— $0.1 $— 
(1) Primarily relates to Mutual Funds (Level 1) and Certificates of Deposit (Level 2). Included in Other current assets.
(2) Primarily relates to investments in Exchange-Traded Funds (Level 1) and certain equity investments, U.S. Treasury Notes and Corporate Bonds (Level 2). Included in Other assets.
(3) Included in Other assets or Other current liabilities.
The Company records cash and cash equivalents, restricted cash, accounts receivable and accounts payable at cost. The recorded values of these financial instruments approximate fair value based on their short-term nature.

The estimated fair value of the Company's debt, including current maturities, was based on Level 2 inputs, being market quotes or values for similar instruments, and interest rates currently available to the Company for the issuance of debt with similar terms and remaining maturities as a discount rate for the remaining principal payments. As of September 12, 2026, the fair value of total debt was $8,600.6 million compared to the carrying value of $8,967.1 million, excluding debt discounts and deferred financing costs. As of February 28, 2026, the fair value of total debt was $8,649.9 million compared to the carrying value of $8,626.8 million, excluding debt discounts and deferred financing costs.
Assets Measured at Fair Value on a Non-Recurring Basis

The Company measures certain assets at fair value on a non-recurring basis, including long-lived assets and goodwill, which are evaluated for impairment. Long-lived assets include store-related assets such as property and equipment, operating lease assets and certain intangible assets. The inputs used to determine the fair value of long-lived assets and a reporting unit are considered Level 3 measurements due to their subjective nature.

During the 12 and 28 weeks ended September 12, 2026, the Company recorded retail store impairment losses of $28.0 million. During the 12 and 28 weeks ended September 6, 2025, the Company recorded retail store impairment losses of $6.2 million and $8.4 million, respectively.

Goodwill represents the difference between the purchase price and the fair value of assets and liabilities acquired in a business combination. As of both September 12, 2026 and February 28, 2026, the Company's goodwill totaled $1,201.0 million. Goodwill is not amortized as the Company reviews goodwill for impairment annually on the first day of its fourth quarter and also if events or changes in circumstances indicate the occurrence of a triggering event. The Company reviews goodwill for impairment by initially considering qualitative factors to determine whether it is necessary to perform a quantitative analysis. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative analysis is performed to identify goodwill impairment. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, it is unnecessary to perform a quantitative analysis. The Company may elect to bypass the qualitative assessment and proceed directly to performing a quantitative analysis.

During the 12 weeks ended September 12, 2026, management identified triggering events, including a sustained decline in operating performance, lower projected operating results and a decline in the Company's market capitalization. As a result, the Company performed an interim quantitative goodwill impairment test. The quantitative assessment was performed using a combination of the income approach, based on discounted cash flow analyses, and the market approach, based on guideline public company multiples. The fair value estimates incorporated significant judgments and assumptions, including projected operating results and capital expenditures, long-term growth rates, and discount rates. Based on the results of the assessment, the estimated fair value of each reporting unit exceeded its carrying amount. Accordingly, the Company concluded that goodwill was not impaired, and no impairment charge was recognized during the period.

Goodwill has been allocated to all of the Company's reporting units, and none of its reporting units have a zero or negative carrying amount of net assets. As of September 12, 2026, the Company has seven reporting units with aggregate goodwill of $873.1 million for which the fair values substantially exceeded their respective carrying values, indicating a remote likelihood of a future impairment loss. The Company also has three reporting units with aggregate goodwill of $327.9 million where it is reasonably possible that future changes in judgments, assumptions and estimates the Company made in assessing the fair value of the reporting unit could cause it to recognize
impairment charges of the goodwill balance within each reporting unit. There is one reporting unit with no goodwill.

These estimates require significant judgments regarding matters that are inherently uncertain, including future expected operating performance, and economic, industry and market conditions; the extent to which actual future operating performance differs from expectations; and changes resulting from the Company's ongoing review of its business, operating model and capital allocation priorities.