Financial Instruments

12 Months Ended

Mar. 04, 2023

Financial Instruments

Financial Instruments

24. Financial Instruments

The carrying amounts and fair values of financial instruments as of March 4, 2023 and February 26, 2022 are listed as follows:

	2023				2022
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Variable rate indebtedness	$	1,581,793	$	1,600,000	$	1,038,646	$	1,059,000
Fixed rate indebtedness	$	1,343,465	$	768,328	$	1,694,340	$	1,602,122

Financial instruments other than long-term indebtedness include cash and cash equivalents, accounts receivable and accounts payable. These instruments are recorded at book value, which we believe approximate their fair values due to their short-term nature. In addition, as of March 4, 2023, the Company has $7,457 of investments carried at amortized cost as these investments are being held to maturity, which are included as a component of prepaid expenses and other current assets. As of February 26, 2022, the Company has $7,406 of investments carried at amortized cost as these investments are being held to maturity, which are included as a component of other assets.

The following methods and assumptions were used in estimating fair value disclosures for financial instruments:

Borrowings under credit facilities:

The carrying amounts for SOFR-based and LIBOR-based borrowings under the credit facilities are estimated based on the quoted market price of the financial instruments. The LIBOR-based borrowings under the credit facilities transitioned to Term SOFR on December 1, 2022.

Long-term indebtedness:

The fair values of long-term indebtedness are estimated based on the quoted market prices of the financial instruments. If quoted market prices were not available, the Company estimated the fair value based on the quoted market price of a financial instrument with similar characteristics.