Leases

12 Months Ended

Mar. 01, 2025

We have operating leases for certain buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Under ASU 2016-20, Leases, we have 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 seventeen 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 twelve 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.

The components of lease expense were as follows:


(In thousands)	2025		2024
Operating lease cost	$	14,587	$	14,312
Short-term lease cost	688		1,349
Variable lease cost	3,984		2,629
Sublease income	(1,533)		(1,479)
Total lease cost	$	17,726	$	16,811

Other supplemental information related to leases are as follows:


(In thousands)	2025			2024

Cash paid for amounts included in the measurement of operating lease liabilities	$	16,467		$	14,656
Lease assets obtained in exchange for new operating lease liabilities	$	21,810		$	11,883
Weighted-average remaining lease term - operating leases	5.7 years			4.0 years
Weighted-average discount rate - operating leases	4.5		%	3.2		%

Future maturities of lease liabilities are as follows:


(In thousands)	2025

Fiscal 2026	$	17,669
Fiscal 2027	17,123
Fiscal 2028	12,818
Fiscal 2029	7,856
Fiscal 2030	6,615
Thereafter	14,781
Total lease payments	76,862
Less: Amounts representing interest	9,940
Present value of lease liabilities	$	66,922