Leases

12 Months Ended

Feb. 28, 2026

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 sixteen years, some of which include renewal options that can extend the lease for up to an additional ten years, at our sole discretion.

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)	2026		2025
Operating lease cost	$	17,067	$	14,587
Short-term lease cost	1,268		688
Variable lease cost	5,955		3,984
Sublease income	(1,799)		(1,533)
Total lease cost	$	22,491	$	17,726

Other supplemental information related to leases are as follows:


(In thousands)	2026			2025

Cash paid for amounts included in the measurement of operating lease liabilities	$	18,136		$	16,467
Lease assets obtained in exchange for new operating lease liabilities	$	3,940		$	21,810
Weighted-average remaining lease term - operating leases	5.6			5.7
Weighted-average discount rate - operating leases	4.7		%	4.5		%

Future maturities of lease liabilities are as follows:


(In thousands)	2026

Fiscal 2027	$	15,823
Fiscal 2028	13,191
Fiscal 2029	8,831
Fiscal 2030	6,027
Fiscal 2031	4,833
Thereafter	12,094
Total lease payments	60,799
Less: Amounts representing interest	6,695
Present value of lease liabilities	$	54,104