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Leases (Notes)
 9 Months Ended
Nov. 30, 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 November 30Nine Months Ended November 30
(In thousands)2021202020212020
Operating lease cost (1)
$20,581 $14,340 $53,631 $43,075 
Finance lease cost:
Depreciation of lease assets3,383 2,149 9,784 5,523 
Interest on lease liabilities4,257 2,680 12,531 7,328 
Total finance lease cost7,640 4,829 22,315 12,851 
Total lease cost$28,221 $19,169 $75,946 $55,926 

(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 30As of February 28
(In thousands)Classification20212021
Assets:
Operating lease assetsOperating lease assets$543,645 $431,652 
Finance lease assets
Property and equipment, net (1)
123,347 109,665 
Total lease assets$666,992 $541,317 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$43,151 $30,953 
Finance leasesAccrued expenses and other current liabilities9,696 9,422 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion529,821 423,618 
Finance leasesOther liabilities140,215 120,094 
Total lease liabilities$722,883 $584,087 

(1)    Finance lease assets are recorded net of accumulated depreciation of $27.3 million as of November 30, 2021 and $17.5 million as of February 28, 2021.

Lease term and discount rate information related to leases was as follows:
As of November 30As of February 28
Lease Term and Discount Rate20212021
Weighted Average Remaining Lease Term (in years)
Operating leases17.4519.37
Finance leases12.7813.56
Weighted Average Discount Rate
Operating leases4.80 %5.36 %
Finance leases14.48 %15.09 %

Supplemental cash flow information related to leases was as follows:
Nine Months Ended November 30
(In thousands)20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$51,527 $42,711 
Operating cash flows from finance leases$8,086 $5,972 
Financing cash flows from finance leases$8,822 $4,871 
Lease assets obtained in exchange for lease obligations:
Operating leases$45,491 $13,650 
Finance leases$24,772 $30,596 
Maturities of lease liabilities were as follows:
As of November 30, 2021
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2022, remaining$17,382 $6,142 
Fiscal 202369,570 25,633 
Fiscal 202469,053 30,569 
Fiscal 202568,544 27,316 
Fiscal 202663,015 27,925 
Thereafter626,442 212,443 
Total lease payments914,006 330,028 
Less: interest(341,034)(180,117)
Present value of lease liabilities$572,972 $149,911 
(1)    Lease payments exclude $13.4 million of legally binding minimum lease payments for leases signed but not yet commenced.