LEASES

12 Months Ended

Feb. 22, 2025

Leases [Abstract]

LEASES

LEASES

The components of total lease cost, net consisted of the following (in millions):

	Classification	Fiscal  2024		Fiscal  2023		Fiscal  2022
Operating lease cost (1)	Cost of sales and Selling and administrative expenses (3)	$	1,111.5	$	1,082.8	$	1,062.8
Finance lease cost
Amortization of lease assets	Cost of sales and Selling and administrative expenses (3)	45.8		51.7		55.5
Interest on lease liabilities	Interest expense, net	38.8		45.5		51.4
Variable lease cost (2)	Cost of sales and Selling and administrative expenses (3)	465.8		456.3		441.9
Sublease income	Net sales and other revenue	(76.0)		(78.6)		(83.3)
Total lease cost, net		$	1,585.9	$	1,557.7	$	1,528.3

(1) Includes short-term lease cost, which is immaterial.

(2) Represents variable lease costs for both operating and finance leases. Includes contingent rent expense and other non-fixed lease-related costs, including property taxes, common area maintenance and property insurance.

(3) Supply chain-related amounts are included in Cost of sales.

Balance sheet information related to leases as of February 22, 2025 and February 24, 2024 consisted of the following (in millions):

	Classification	February 22, 2025		February 24, 2024
Assets
Operating	Operating lease right-of-use assets	$	6,153.4	$	5,981.6
Finance	Property and equipment, net	288.0		300.2
Total lease assets		$	6,441.4	$	6,281.8
Liabilities
Current
Operating	Current operating lease obligations	$	705.5	$	677.6
Finance	Current maturities of long-term debt and finance lease obligations	57.0		68.3
Long-term
Operating	Long-term operating lease obligations	5,657.2		5,493.2
Finance	Long-term debt and finance lease obligations	370.9		392.1
Total lease liabilities		$	6,790.6	$	6,631.2

The following table presents cash flow information for leases (in millions):

	Fiscal  2024		Fiscal  2023		Fiscal  2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,070.1	$	1,042.0	$	1,020.2
Operating cash flows from finance leases	38.8		45.5		51.4
Financing cash flows from finance leases	60.6		69.3		71.6
Right-of-use assets obtained in exchange for operating lease obligations	868.6		773.0		629.5
Right-of-use assets obtained in exchange for finance lease obligations	41.3		22.6		22.8
Impairment of right-of-use operating lease assets	7.0		1.8		—

The following table presents the weighted average lease term and discount rate for leases:

	February 22, 2025		February 24, 2024
Weighted average remaining lease term - operating leases	10.2 years		10.5 years
Weighted average remaining lease term - finance leases	9.7 years		8.7 years
Weighted average discount rate - operating leases	6.4	%	6.4	%
Weighted average discount rate - finance leases	9.2	%	10.1	%

Future minimum lease payments for operating and finance lease obligations as of February 22, 2025 consisted of the following (in millions):

	Lease Obligations
Fiscal year	Operating Leases		Finance Leases
2025	$	1,010.6	$	81.3
2026	1,047.1		78.5
2027	964.3		67.2
2028	881.9		58.9
2029	779.8		50.5
Thereafter	4,194.8		286.7
Total future minimum obligations	8,878.5		623.1
Less interest	(2,515.8)		(195.2)
Present value of net future minimum lease obligations	6,362.7		427.9
Less current portion	(705.5)		(57.0)
Long-term obligations	$	5,657.2	$	370.9

The Company subleases certain property to third parties. Future minimum tenant operating lease payments remaining under these non-cancelable operating leases as of February 22, 2025 was $278.0 million.

LEASES

LEASES

The components of total lease cost, net consisted of the following (in millions):

	Classification	Fiscal  2024		Fiscal  2023		Fiscal  2022
Operating lease cost (1)	Cost of sales and Selling and administrative expenses (3)	$	1,111.5	$	1,082.8	$	1,062.8
Finance lease cost
Amortization of lease assets	Cost of sales and Selling and administrative expenses (3)	45.8		51.7		55.5
Interest on lease liabilities	Interest expense, net	38.8		45.5		51.4
Variable lease cost (2)	Cost of sales and Selling and administrative expenses (3)	465.8		456.3		441.9
Sublease income	Net sales and other revenue	(76.0)		(78.6)		(83.3)
Total lease cost, net		$	1,585.9	$	1,557.7	$	1,528.3

(1) Includes short-term lease cost, which is immaterial.

(2) Represents variable lease costs for both operating and finance leases. Includes contingent rent expense and other non-fixed lease-related costs, including property taxes, common area maintenance and property insurance.

(3) Supply chain-related amounts are included in Cost of sales.

Balance sheet information related to leases as of February 22, 2025 and February 24, 2024 consisted of the following (in millions):

	Classification	February 22, 2025		February 24, 2024
Assets
Operating	Operating lease right-of-use assets	$	6,153.4	$	5,981.6
Finance	Property and equipment, net	288.0		300.2
Total lease assets		$	6,441.4	$	6,281.8
Liabilities
Current
Operating	Current operating lease obligations	$	705.5	$	677.6
Finance	Current maturities of long-term debt and finance lease obligations	57.0		68.3
Long-term
Operating	Long-term operating lease obligations	5,657.2		5,493.2
Finance	Long-term debt and finance lease obligations	370.9		392.1
Total lease liabilities		$	6,790.6	$	6,631.2

The following table presents cash flow information for leases (in millions):

	Fiscal  2024		Fiscal  2023		Fiscal  2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,070.1	$	1,042.0	$	1,020.2
Operating cash flows from finance leases	38.8		45.5		51.4
Financing cash flows from finance leases	60.6		69.3		71.6
Right-of-use assets obtained in exchange for operating lease obligations	868.6		773.0		629.5
Right-of-use assets obtained in exchange for finance lease obligations	41.3		22.6		22.8
Impairment of right-of-use operating lease assets	7.0		1.8		—

The following table presents the weighted average lease term and discount rate for leases:

	February 22, 2025		February 24, 2024
Weighted average remaining lease term - operating leases	10.2 years		10.5 years
Weighted average remaining lease term - finance leases	9.7 years		8.7 years
Weighted average discount rate - operating leases	6.4	%	6.4	%
Weighted average discount rate - finance leases	9.2	%	10.1	%

Future minimum lease payments for operating and finance lease obligations as of February 22, 2025 consisted of the following (in millions):

	Lease Obligations
Fiscal year	Operating Leases		Finance Leases
2025	$	1,010.6	$	81.3
2026	1,047.1		78.5
2027	964.3		67.2
2028	881.9		58.9
2029	779.8		50.5
Thereafter	4,194.8		286.7
Total future minimum obligations	8,878.5		623.1
Less interest	(2,515.8)		(195.2)
Present value of net future minimum lease obligations	6,362.7		427.9
Less current portion	(705.5)		(57.0)
Long-term obligations	$	5,657.2	$	370.9

The Company subleases certain property to third parties. Future minimum tenant operating lease payments remaining under these non-cancelable operating leases as of February 22, 2025 was $278.0 million.

LEASES

LEASES

The components of total lease cost, net consisted of the following (in millions):

	Classification	Fiscal  2024		Fiscal  2023		Fiscal  2022
Operating lease cost (1)	Cost of sales and Selling and administrative expenses (3)	$	1,111.5	$	1,082.8	$	1,062.8
Finance lease cost
Amortization of lease assets	Cost of sales and Selling and administrative expenses (3)	45.8		51.7		55.5
Interest on lease liabilities	Interest expense, net	38.8		45.5		51.4
Variable lease cost (2)	Cost of sales and Selling and administrative expenses (3)	465.8		456.3		441.9
Sublease income	Net sales and other revenue	(76.0)		(78.6)		(83.3)
Total lease cost, net		$	1,585.9	$	1,557.7	$	1,528.3

(1) Includes short-term lease cost, which is immaterial.

(2) Represents variable lease costs for both operating and finance leases. Includes contingent rent expense and other non-fixed lease-related costs, including property taxes, common area maintenance and property insurance.

(3) Supply chain-related amounts are included in Cost of sales.

Balance sheet information related to leases as of February 22, 2025 and February 24, 2024 consisted of the following (in millions):

	Classification	February 22, 2025		February 24, 2024
Assets
Operating	Operating lease right-of-use assets	$	6,153.4	$	5,981.6
Finance	Property and equipment, net	288.0		300.2
Total lease assets		$	6,441.4	$	6,281.8
Liabilities
Current
Operating	Current operating lease obligations	$	705.5	$	677.6
Finance	Current maturities of long-term debt and finance lease obligations	57.0		68.3
Long-term
Operating	Long-term operating lease obligations	5,657.2		5,493.2
Finance	Long-term debt and finance lease obligations	370.9		392.1
Total lease liabilities		$	6,790.6	$	6,631.2

The following table presents cash flow information for leases (in millions):

	Fiscal  2024		Fiscal  2023		Fiscal  2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,070.1	$	1,042.0	$	1,020.2
Operating cash flows from finance leases	38.8		45.5		51.4
Financing cash flows from finance leases	60.6		69.3		71.6
Right-of-use assets obtained in exchange for operating lease obligations	868.6		773.0		629.5
Right-of-use assets obtained in exchange for finance lease obligations	41.3		22.6		22.8
Impairment of right-of-use operating lease assets	7.0		1.8		—

The following table presents the weighted average lease term and discount rate for leases:

	February 22, 2025		February 24, 2024
Weighted average remaining lease term - operating leases	10.2 years		10.5 years
Weighted average remaining lease term - finance leases	9.7 years		8.7 years
Weighted average discount rate - operating leases	6.4	%	6.4	%
Weighted average discount rate - finance leases	9.2	%	10.1	%

Future minimum lease payments for operating and finance lease obligations as of February 22, 2025 consisted of the following (in millions):

	Lease Obligations
Fiscal year	Operating Leases		Finance Leases
2025	$	1,010.6	$	81.3
2026	1,047.1		78.5
2027	964.3		67.2
2028	881.9		58.9
2029	779.8		50.5
Thereafter	4,194.8		286.7
Total future minimum obligations	8,878.5		623.1
Less interest	(2,515.8)		(195.2)
Present value of net future minimum lease obligations	6,362.7		427.9
Less current portion	(705.5)		(57.0)
Long-term obligations	$	5,657.2	$	370.9

The Company subleases certain property to third parties. Future minimum tenant operating lease payments remaining under these non-cancelable operating leases as of February 22, 2025 was $278.0 million.