Leases (Tables)

12 Months Ended

Feb. 25, 2023

The components of total lease cost for the fiscal year ended February 25, 2023 and February 26, 2022 were as follows:


(in thousands)	Statement of Operations Location	February 25, 2023		February 26, 2022
Operating lease cost	Cost of sales and SG&A	$	386,319	$	449,394
Finance lease cost:
Depreciation of property	SG&A	1,611		184
Interest on lease liabilities	Interest expense, net	4,966		1,886
Variable lease cost	Cost of sales and SG&A	138,219		152,259
Sublease income	SG&A	(55,407)		(43,922)
Total lease cost		$	475,708	$	559,801

As of February 25, 2023 and February 26, 2022, assets and liabilities related to the Company's operating and finance leases were as follows:


(in thousands)	Consolidated Balance Sheet Location	February 25, 2023		February 26, 2022
Assets
Operating leases	Operating lease assets	$	965,882	$	1,562,857
Finance leases	Property and equipment, net	—		38,790
Total Lease assets		$	965,882	$	1,601,647

Liabilities
Current:
Operating leases	Current operating lease liabilities	$	301,194	$	346,506
Finance leases	Accrued expenses and other current liabilities	7,048		2,494
Noncurrent:
Operating leases	Operating lease liabilities	1,278,467		1,508,002
Finance leases	Other liabilities	64,052		35,447
Total lease liabilities		$	1,650,761	$	1,892,449

As of February 25, 2023, the Company's lease liabilities mature as follows:


(in thousands)	Operating Leases		Finance Leases
Fiscal Year:
2023	$	373,985	$	11,525
2024	355,359		11,525
2025	295,382		11,525
2026	229,674		11,525
2027	183,157		11,525
Thereafter	560,964		48,841
Total lease payments	$	1,998,521	$	106,466
Less imputed interest	(418,860)		(35,366)
Present value of lease liabilities	$	1,579,661	$	71,100

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


	February 25, 2023		February 26, 2022
Weighted-average remaining lease term (in years)
Operating leases	6.7 years		7.0 years
Finance leases	9.5 years		10.0 years
Weighted-average discount rate
Operating leases	8.3	%	6.0	%
Finance leases	8.3	%	8.4	%

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


(in thousands)	February 25, 2023		February 26, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	419,553	$	450,082
Operating cash flows from finance leases	4,448		1,886
Financing cash flows from finance leases	3,206		1,033
Operating lease assets obtained in exchange for new operating lease liabilities	96,669		359,933
Financing lease assets obtained in exchange for new financing lease liabilities	35,030		38,974

BED BATH & BEYOND INC 10-K