Leases Leases

3 Months Ended

May 27, 2023

Leases [Abstract]

Leases

7. Leases

We lease certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Currently, all of our lease arrangements are classified as operating leases. 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; 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 non lease 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:

	Three Months Ended
(In thousands)	May 27, 2023		May 28, 2022
Operating lease cost	$	3,276	$	3,051
Short-term lease cost	10		314
Variable lease cost	755		906
Total lease cost	$	4,041	$	4,271

Other supplemental information related to leases was as follows:

	Three Months Ended
(In thousands except weighted-average data)	May 27, 2023			May 28, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,742		$	3,537
Lease assets obtained in exchange for new operating lease liabilities	$	1,580		$	168
Weighted-average remaining lease term - operating leases	4.4 years			5.2 years
Weighted-average discount rate - operating leases	3.27		%	2.86		%

Future maturities of lease liabilities are as follows:

(In thousands)	May 27, 2023
Remainder of Fiscal 2024	$	9,477
Fiscal 2025	11,785
Fiscal 2026	9,379
Fiscal 2027	7,960
Fiscal 2028	4,324
Fiscal 2029	1,547
Thereafter	2,226
Total lease payments	46,698
Less: Amounts representing interest	3,355
Present value of lease liabilities	$	43,343