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Leases (Notes)
 6 Months Ended
Aug. 31, 2021
Leases [Abstract]  
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 did not qualify for sale accounting and are accounted for as financing obligations. For more information on these financing obligations see Note 10.
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 restricted 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 August 31Six Months Ended August 31
(In thousands)2021202020212020
Operating lease cost (1)
$18,698 $14,351 $33,050 $28,735 
Finance lease cost:
Depreciation of lease assets3,258 1,719 6,400 3,374 
Interest on lease liabilities4,167 2,433 8,274 4,648 
Total finance lease cost7,425 4,152 14,674 8,022 
Total lease cost$26,123 $18,503 $47,724 $36,757 

(1) Includes short-term leases and variable lease costs, which are immaterial.
Supplemental balance sheet information related to leases was as follows:
As of August 31As of February 28
(In thousands)Classification20212021
Assets:
Operating lease assetsOperating lease assets$553,727 $431,652 
Finance lease assets
Property and equipment, net (1)
115,667 109,665 
Total lease assets$669,394 $541,317 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$43,676 $30,953 
Finance leasesAccrued expenses and other current liabilities9,755 9,422 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion538,296 423,618 
Finance leasesOther liabilities129,349 120,094 
Total lease liabilities$721,076 $584,087 

(1)    Finance lease assets are recorded net of accumulated depreciation of $23.9 million as of August 31, 2021 and $17.5 million as of February 28, 2021.

Lease term and discount rate information related to leases was as follows:
As of August 31As of February 28
Lease Term and Discount Rate20212021
Weighted Average Remaining Lease Term (in years)
Operating leases17.5219.37
Finance leases13.0313.56
Weighted Average Discount Rate
Operating leases4.80 %5.36 %
Finance leases14.72 %15.09 %

Supplemental cash flow information related to leases was as follows:
Six Months Ended August 31
(In thousands)20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$31,656 $28,524 
Operating cash flows from finance leases$5,383 $3,872 
Financing cash flows from finance leases$5,709 $2,880 
Lease assets obtained in exchange for lease obligations:
Operating leases$44,059 $10,740 
Finance leases$12,404 $15,711 
Maturities of lease liabilities were as follows:
As of August 31, 2021
(In thousands)Operating LeasesFinance Leases
Fiscal 2022, remaining$34,412 $11,910 
Fiscal 202369,275 25,412 
Fiscal 202468,758 28,377 
Fiscal 202568,264 25,088 
Fiscal 202662,809 25,660 
Thereafter626,099 197,335 
Total lease payments929,617 313,782 
Less: interest(347,645)(174,678)
Present value of lease liabilities$581,972 $139,104