LEASES
The components of total lease cost, net consisted of the following (in millions):
ClassificationFiscal
 2025
Fiscal
 2024
Fiscal
 2023
Operating lease cost (1)Cost of sales and Selling and administrative expenses (3)$1,167.1 $1,111.5 $1,082.8 
Finance lease cost
Amortization of lease assetsCost of sales and Selling and administrative expenses (3)40.6 45.8 51.7 
Interest on lease liabilitiesInterest expense, net34.4 38.8 45.5 
Variable lease cost (2)Cost of sales and Selling and administrative expenses (3)483.1 465.8 456.3 
Sublease incomeNet sales and other revenue(72.3)(76.0)(78.6)
Total lease cost, net$1,652.9 $1,585.9 $1,557.7 
(1) Includes short-term lease cost, which is immaterial.
(2) Represents variable lease costs for both operating and finance leases. Includes contingent rent expense and other non-fixed lease-related costs, including property taxes, common area maintenance and property insurance.
(3) Supply chain-related amounts are included in Cost of sales.

Balance sheet information related to leases as of February 28, 2026 and February 22, 2025 consisted of the following (in millions):
ClassificationFebruary 28,
2026
February 22,
2025
Assets
OperatingOperating lease right-of-use assets$6,102.4 $6,153.4 
FinanceProperty and equipment, net287.9 288.0 
Total lease assets$6,390.3 $6,441.4 
Liabilities
Current
OperatingCurrent operating lease obligations$736.7 $705.5 
FinanceCurrent maturities of long-term debt and finance lease obligations48.9 57.0 
Long-term
OperatingLong-term operating lease obligations5,613.6 5,657.2 
FinanceLong-term debt and finance lease obligations364.0 370.9 
Total lease liabilities$6,763.2 $6,790.6 
The following table presents cash flow information for leases (in millions):
Fiscal
 2025
Fiscal
 2024
Fiscal
 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,109.8 $1,070.1 $1,042.0 
Operating cash flows from finance leases34.4 38.8 45.5 
Financing cash flows from finance leases51.0 60.6 69.3 
Right-of-use assets obtained in exchange for operating lease obligations689.6 868.6 773.0 
Right-of-use assets obtained in exchange for finance lease obligations41.6 41.3 22.6 
Impairment of right-of-use operating lease assets6.3 7.0 1.8 

The following table presents the weighted average lease term and discount rate for leases:
February 28,
2026
February 22,
2025
Weighted average remaining lease term - operating leases9.9 years10.2 years
Weighted average remaining lease term - finance leases10.5 years9.7 years
Weighted average discount rate - operating leases6.4 %6.4 %
Weighted average discount rate - finance leases8.7 %9.2 %

Future minimum lease payments for operating and finance lease obligations as of February 28, 2026 consisted of the following (in millions):
Lease Obligations
Fiscal yearOperating LeasesFinance Leases
2026$1,038.5 $72.8 
20271,060.8 70.9 
2028980.9 62.6 
2029880.1 54.3 
2030783.4 49.6 
Thereafter4,007.7 299.9 
Total future minimum obligations 8,751.4 610.1 
Less interest(2,401.1)(197.2)
Present value of net future minimum lease obligations6,350.3 412.9 
Less current portion(736.7)(48.9)
Long-term obligations$5,613.6 $364.0 

The Company subleases certain property to third parties. Future minimum tenant operating lease payments remaining under these non-cancelable operating leases as of February 28, 2026 was $260.7 million.

Historical Timeline

Fiscal YearFiled
2026Apr 27, 2026Showing above
2025Apr 21, 2025
2024Apr 22, 2024
2023Apr 25, 2023
2022Apr 26, 2022
2021Apr 28, 2021
2020May 13, 2020
2019Apr 24, 2019
2018May 11, 2018

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.