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Leases (Notes)
 9 Months Ended
Nov. 30, 2024
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 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 30Nine Months Ended November 30
(In thousands)2024202320242023
Operating lease cost (1)
$22,934 $22,772 $69,035 $66,958 
Finance lease cost:
Depreciation of lease assets5,132 5,266 15,980 14,708 
Interest on lease liabilities6,589 6,610 20,180 19,112 
Total finance lease cost11,721 11,876 36,160 33,820 
Total lease cost$34,655 $34,648 $105,195 $100,778 

(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 29
(In thousands)Classification20242024
Assets:
Operating lease assetsOperating lease assets$504,979 $520,717 
Finance lease assets
Property and equipment, net (1)
163,081 174,998 
Total lease assets$668,060 $695,715 
Liabilities:
Current:
Operating leasesCurrent portion of operating lease liabilities$60,338 $57,161 
Finance leasesAccrued expenses and other current liabilities14,253 20,877 
Long-term:
Operating leasesOperating lease liabilities, excluding current portion481,344 496,210 
Finance leasesOther liabilities190,754 198,759 
Total lease liabilities$746,689 $773,007 

(1)    Finance lease assets are recorded net of accumulated depreciation of $63.1 million as of November 30, 2024 and $55.5 million as of February 29, 2024.
Lease term and discount rate information related to leases was as follows:
As of November 30As of February 29
Lease Term and Discount Rate20242024
Weighted Average Remaining Lease Term (in years)
Operating leases15.6816.07
Finance leases14.4311.43
Weighted Average Discount Rate
Operating leases5.15 %5.05 %
Finance leases16.88 %17.16 %

Supplemental cash flow information related to leases was as follows:
Nine Months Ended November 30
(In thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$70,954 $66,352 
Operating cash flows from finance leases$18,515 $18,387 
Financing cash flows from finance leases$13,146 $12,177 
Lease assets obtained in exchange for lease obligations:
Operating leases$27,982 $29,080 
Finance leases$5,442 $50,085 

Maturities of lease liabilities were as follows:
As of November 30, 2024
(In thousands)
Operating Leases (1)
Finance Leases (1)
Fiscal 2025, remaining$22,382 $9,017 
Fiscal 202683,861 38,874 
Fiscal 202776,849 39,415 
Fiscal 202872,725 35,212 
Fiscal 202950,845 34,945 
Thereafter530,719 279,212 
Total lease payments837,381 436,675 
Less: interest(295,699)(231,668)
Present value of lease liabilities$541,682 $205,007 
(1)    Lease payments exclude $4.7 million of legally binding minimum lease payments for leases signed but not yet commenced.