Leases (Notes)

6 Months Ended

Aug. 28, 2020

Lessee, Lease, Description [Line Items]

Leases of Lessee Disclosure [Text Block]

LEASES

We have operating leases for corporate offices, sales offices, showrooms, manufacturing facilities, vehicles and equipment that expire at various dates through 2031. Certain lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours used) and others include rental payments adjusted periodically for inflationary indexes. Additionally, some leases include options to renew or terminate the leases which can be exercised at our discretion. The lease terms utilized in determining right-of-use assets and lease liabilities include the noncancellable portion of the underlying leases along with any reasonably certain lease periods associated with available renewal periods. Our leases do not contain any residual value guarantees or material restrictive covenants. As most of our leases do not provide an implicit discount rate, we use an estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The estimated incremental borrowing rate represents the estimated rate of interest we would have had to pay to borrow on a collateralized basis an amount equal to the lease payments for a similar period of time.

As a result of the COVID-19 pandemic, the FASB staff issued a question and answer document (the "Staff Q&A") on the application of lease accounting guidance related to lease concessions provided as a result of the pandemic. The Staff Q&A provides interpretive guidance allowing companies the option to account for lease concessions related to the pandemic consistent with how those concessions would be accounted for under ASU 2016-02, Leases (Topic 842), as though enforceable rights and obligations for those concessions existed at the beginning of the contract (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). This interpretive guidance was issued in order to reduce the costs and complexities of applying lease modification accounting under Topic 842 to leases impacted by the effects of the pandemic. We have elected to apply the interpretive guidance provided in the Staff Q&A to rent deferrals or abatements received related to the pandemic. Accordingly, we have not remeasured the related right-of-use asset or lease liability for the affected leases. The lease concessions were not material for the six months ended August 28, 2020.

The components of lease expense are as follows:

	Three Months Ended				Six Months Ended
	August 28, 2020		August 23, 2019		August 28, 2020		August 23, 2019
Operating lease cost	$	12.9	$	12.5	$	26.0	$	24.6
Sublease rental income	(0.6)		(0.3)		(0.9)		(0.4)
	$	12.3	$	12.2	$	25.1	$	24.2

Supplemental cash flow and other information related to leases are as follows:

	Three Months Ended				Six Months Ended
	August 28, 2020		August 23, 2019		August 28, 2020		August 23, 2019
Cash flow information:
Operating cash flows used for operating leases	$	12.1	$	11.5	$	24.7	$	23.4
Leased assets obtained in exchange for new operating lease obligations	$	1.4	$	18.6	$	1.9	$	58.2

	August 28, 2020		August 23, 2019
Other information:
Weighted-average remaining term	6.8 years		7.3 years
Weighted-average discount rate	4.0	%	4.2	%

The following table summarizes the future minimum lease payments as of August 28, 2020:

Fiscal year ending in February	Amount (1)
2021	$	26.1
2022	48.5
2023	41.6
2024	35.8
2025	33.3
Thereafter	91.5
Total lease payments	276.8
Less interest	35.3
Present value of lease liabilities	$	241.5

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(1)Lease payments include options to extend lease terms that are reasonably certain of being exercised. The payments exclude legally binding minimum lease payments for leases signed but not yet commenced.