Leases (Notes)

9 Months Ended

Nov. 30, 2025

Leases of Lessee Disclosure [Text Block]

Leases

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 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:


	Three Months Ended November 30				Nine Months Ended November 30
(In thousands)	2025		2024		2025		2024
Operating lease cost (1)	$	24,341	$	22,934	$	73,211	$	69,035
Finance lease cost:
Depreciation of lease assets	4,634		5,132		13,858		15,980
Interest on lease liabilities	6,034		6,589		18,533		20,180
Total finance lease cost	10,668		11,721		32,391		36,160
Total lease cost	$	35,009	$	34,655	$	105,602	$	105,195

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

Supplemental balance sheet information related to leases was as follows:


		As of November 30		As of February 28
(In thousands)	Classification	2025		2025
Assets:
Operating lease assets	Operating lease assets	$	475,078	$	493,355
Finance lease assets	Property and equipment, net (1)	150,811		160,535
Total lease assets		$	625,889	$	653,890
Liabilities:
Current:
Operating leases	Current portion of operating lease liabilities	$	57,173	$	59,335
Finance leases	Accrued expenses and other current liabilities	16,926		15,015
Long-term:
Operating leases	Operating lease liabilities, excluding current portion	462,391		481,963
Finance leases	Other liabilities	180,660		189,216
Total lease liabilities		$	717,150	$	745,529

(1) Finance lease assets are recorded net of accumulated depreciation of $81.5 million as of November 30, 2025 and $67.6 million as of February 28, 2025.

Lease term and discount rate information related to leases was as follows:


	As of November 30		As of February 28
Lease Term and Discount Rate	2025		2025
Weighted Average Remaining Lease Term (in years)
Operating leases	15.56		15.49
Finance leases	13.94		14.31

Weighted Average Discount Rate
Operating leases	5.33	%	5.21	%
Finance leases	16.44	%	16.78	%

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended November 30
(In thousands)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	77,149	$	70,954
Operating cash flows from finance leases	$	18,062	$	18,515
Financing cash flows from finance leases	$	11,002	$	13,146

Lease assets obtained in exchange for lease obligations:
Operating leases	$	22,951	$	27,982
Finance leases	$	4,134	$	5,442

Maturities of lease liabilities were as follows:


	As of November 30, 2025
(In thousands)	Operating Leases		Finance Leases
Fiscal 2026, remaining	$	20,998	$	9,768
Fiscal 2027	82,161		39,870
Fiscal 2028	78,031		35,990
Fiscal 2029	56,200		38,623
Fiscal 2030	46,362		28,645
Thereafter	520,122		252,991
Total lease payments	803,874		405,887
Less: interest	(284,310)		(208,301)
Present value of lease liabilities	$	519,564	$	197,586