Leases (Tables)

9 Months Ended

Nov. 26, 2022

The components of total lease cost for the three and nine months ended November 26, 2022 and November 27, 2021, were as follows:


(in thousands)	Statement of Operations Location	Three Months Ended				Nine Months Ended
		November 26, 2022		November 27, 2021		November 26, 2022		November 27, 2021
Operating lease cost	Cost of sales and SG&A	$	94,606	$	105,230	$	299,735	$	332,952
Finance lease cost:
Depreciation of property	SG&A	639		—		1,022		—
Interest on lease liabilities	Interest expense, net	1,636		—		3,742		—
Variable lease cost	Cost of sales and SG&A	33,378		40,753		107,135		112,270
Sublease income	SG&A	(15,744)		(9,929)		(42,554)		(34,735)
Total lease cost		$	114,515	$	136,054	$	369,080	$	410,487

As of November 26, 2022 and February 26, 2022, assets and liabilities related to the Company’s leases were as follows:


(in thousands)	Consolidated Balance Sheet Location	November 26, 2022		February 26, 2022
Assets
Operating leases	Operating lease assets	$	1,321,665	$	1,562,857
Finance leases	Property and equipment, net	63,639		38,790
Total lease assets		$	1,385,304	$	1,601,647

Liabilities
Current:
Operating leases	Current operating lease liabilities	$	313,368	$	346,506
Finance leases	Accrued expenses and other current liabilities	7,048		2,494
Noncurrent:
Operating leases	Operating lease liabilities	1,388,484		1,508,002
Finance leases	Other liabilities	54,452		35,447
Total lease liabilities		$	1,763,352	$	1,892,449

As of November 26, 2022, the Company’s lease liabilities mature as follows:


(in thousands)	Operating Leases		Finance Leases
Fiscal Year:
Remainder of 2022	$	72,296	$	2,881
2023	413,473		11,525
2024	364,233		11,525
2025	301,520		11,525
2026	232,768		11,525
2027	184,826		11,525
Thereafter	564,831		48,713
Total lease payments	$	2,133,947	$	109,219
Less imputed interest	(432,095)		(47,719)
Present value of lease liabilities	$	1,701,852	$	61,500

The Company’s lease terms and discount rates were as follows:


	November 26, 2022		February 26, 2022
Weighted-average remaining lease term (in years)
Operating leases	6.8 years		7.0 years
Finance leases	9.4 years		10.0 years
Weighted-average discount rate
Operating leases	7.4	%	6.0	%
Finance leases	8.3	%	8.4	%

Other information with respect to the Company’s leases is as follows:


(in thousands)	Nine Months Ended
	November 26, 2022		November 27, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	316,410	$	340,314
Operating cash flows from finance leases	3,223		—
Financing cash flows from finance leases	1,849		—
Operating lease assets obtained in exchange for new operating lease liabilities	358,997		293,824
Financing lease assets obtained in exchange for new financing lease liabilities	25,871		—