Leases Leases (Notes)

12 Months Ended

Feb. 25, 2023

Leases [Abstract]

Lessee, Operating Leases

Leases

We have operating leases for certain of the 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 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 and 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:

(In thousands)	February 25, 2023		February 26, 2022
Operating lease cost	$	12,336	$	13,509
Short-term lease cost	908		1,024
Variable lease cost	3,487		2,991
Total lease cost	$	16,731	$	17,524

Other supplemental information related to leases for the year ended February 25, 2023 was as follows:

(In thousands)	February 25, 2023			February 26, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	14,086		$	14,301
Lease assets obtained in exchange for new operating lease liabilities	$	11,359		$	3,259
Weighted-average remaining lease term - operating leases	4.5 years			5.3 years
Weighted-average discount rate - operating leases	3.1		%	2.9		%

Future maturities of lease liabilities are as follows:

(In thousands)	2023
Fiscal 2024	$	12,537
Fiscal 2025	11,449
Fiscal 2026	9,211
Fiscal 2027	7,792
Fiscal 2028	4,145
Thereafter	3,684
Total lease payments	48,818
Less: Amounts representing interest	3,940
Present value of lease liabilities	$	44,878