Leases Leases (Notes)

12 Months Ended

Feb. 26, 2022

Leases [Abstract]

Lessee, Operating Leases

Leases

We have operating leases for certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. At the beginning of fiscal 2020, we adopted ASU 2016-20, Leases. We elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease expense is recognized on a straight-line basis over the lease term. Our leases have remaining lease terms of one to ten years, some of which include renewal options that can extend the lease for up to an additional ten years at our sole discretion. We have made an accounting policy election not to record leases with an original term of 12 months or less on our consolidated balance sheet and such leases are expensed on a straight-line basis over the lease term.

In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term. We have elected the practical expedient to account for lease and nonlease components (e.g., common-area maintenance costs) as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We are not a lessor in any transactions.

The components of lease expense were as follows:

(In thousands)	February 26, 2022		February 27, 2021
Operating lease cost	$	13,509	$	13,973
Short-term lease cost	1,024		1,910
Variable lease cost	2,991		2,827
Total lease cost	$	17,524	$	18,710

Other supplemental information related to leases for the year ended February 26, 2022 was as follows:

(In thousands)	February 26, 2022			February 27, 2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	14,301		$	13,952
Lease assets obtained in exchange for new operating lease liabilities	$	3,259		$	23,772
Weighted-average remaining lease term - operating leases	5.3 years			6.0 years
Weighted-average discount rate - operating leases	2.9		%	3.0		%

Future maturities of lease liabilities are as follows:

(In thousands)	2022
Fiscal 2023	$	13,604
Fiscal 2024	11,311
Fiscal 2025	9,950
Fiscal 2026	7,929
Fiscal 2027	6,423
Thereafter	6,735
Total lease payments	55,952
Less: Amounts representing interest	3,617
Present value of lease liabilities	$	52,335