Leases

12 Months Ended

Apr. 02, 2022

Lessee Disclosure [Abstract]

Leases

Leases

The following table summarizes ROU assets and lease liabilities recorded on the consolidated balance sheet:

	April 2, 2022		March 27, 2021		Location Recorded on Balance Sheet
	(millions)
Assets:
Operating leases	$	1,111.3	$	1,239.5	Operating lease right-of-use assets
Finance leases	299.4		331.6		Property and equipment, net
Total lease assets	$	1,410.7	$	1,571.1
Liabilities:
Operating leases:
Current portion	$	262.0	$	302.9	Current operating lease liabilities
Non-current portion	1,132.2		1,294.5		Long-term operating lease liabilities
Total operating lease liabilities	1,394.2		1,597.4
Finance leases:
Current portion	19.8		19.7		Accrued expenses and other current liabilities
Non-current portion	341.6		370.5		Long-term finance lease liabilities
Total finance lease liabilities	361.4		390.2
Total lease liabilities	$	1,755.6	$	1,987.6

The following table summarizes the composition of total lease cost during the fiscal periods presented:

	Fiscal Years Ended
	April 2, 2022		March 27, 2021		March 28, 2020		Location Recorded in Earnings
	(millions)
Operating lease cost	$	300.2	$	323.5	$	322.0	(a)
Finance lease costs:
Depreciation of leased assets	26.1		20.5		18.1		SG&A expenses
Accretion of lease liabilities	12.2		9.7		8.1		Interest expense
Variable lease cost	291.2		224.7		298.0		(b)
Short-term lease cost	3.6		4.9		5.5		SG&A expenses
Sublease income	(6.7)		(1.8)		(2.9)		Restructuring and other charges, net
Total lease cost	$	626.6	$	581.5	$	648.8

(a)During Fiscal 2022, $3.3 million was included within cost of goods sold, $276.2 million was included within SG&A expenses, and $20.7 million was included within restructuring and other charges, net. During Fiscal 2021, $3.4 million was included within cost of goods sold, $307.0 million was included within SG&A expenses, and $13.1 million was included within restructuring and other charges, net. During Fiscal 2020, $4.4 million was included within cost of goods sold, $307.3 million was included within SG&A expenses, and $10.3 million was included within restructuring and other charges, net.

(b)During Fiscal 2022, $4.6 million was included within cost of goods sold, $288.6 million was included within SG&A expenses, and a benefit of $2.0 million was included within restructuring and other charges, net. During Fiscal 2021, $4.5 million was included within cost of goods sold and $220.2 million was included within SG&A expenses. During Fiscal 2020, $4.7 million was included within cost of goods sold, $290.3 million was included within SG&A expenses, and $3.0 million was included within restructuring and other charges, net.

The following table summarizes certain cash flow information related to the Company's leases:

	Fiscal Year Ended
	April 2, 2022		March 27, 2021		March 28, 2020
	(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	384.6	$	360.6	$	383.9
Operating cash flows from finance leases	12.3		6.7		8.0
Financing cash flows from finance leases	23.1		13.9		13.6

See Note 21 for supplemental non-cash information related to ROU assets recorded in connection with the recognition of new lease liabilities.

The following table presents a maturity analysis summary of contractual cash payments for the Company's lease liabilities recorded on the consolidated balance sheet as of April 2, 2022:

	April 2, 2022
	Operating Leases		Finance Leases
	(millions)
Fiscal 2023	$	286.1	$	32.5
Fiscal 2024	276.6		34.3
Fiscal 2025	230.7		34.8
Fiscal 2026	162.9		35.1
Fiscal 2027	141.4		34.6
Fiscal 2028 and thereafter	396.5		276.1
Total lease payments	1,494.2		447.4
Less: interest	(100.0)		(86.0)
Total lease liabilities	$	1,394.2	$	361.4

Additionally, the Company has $23.9 million of future payment obligations relating to executed lease agreements for which the related lease terms had not yet commenced as of the end of Fiscal 2022, and, therefore, are not recorded on the consolidated balance sheet as of April 2, 2022.

The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheet:

	April 2, 2022				March 27, 2021
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	6.8		13.5		6.9		14.2
Weighted-average discount rate	1.9	%	3.2	%	2.0	%	3.3	%

See Note 3 for discussion of the Company's accounting policies related to leases.

Leases

Leases

The following table summarizes ROU assets and lease liabilities recorded on the consolidated balance sheet:

	April 2, 2022		March 27, 2021		Location Recorded on Balance Sheet
	(millions)
Assets:
Operating leases	$	1,111.3	$	1,239.5	Operating lease right-of-use assets
Finance leases	299.4		331.6		Property and equipment, net
Total lease assets	$	1,410.7	$	1,571.1
Liabilities:
Operating leases:
Current portion	$	262.0	$	302.9	Current operating lease liabilities
Non-current portion	1,132.2		1,294.5		Long-term operating lease liabilities
Total operating lease liabilities	1,394.2		1,597.4
Finance leases:
Current portion	19.8		19.7		Accrued expenses and other current liabilities
Non-current portion	341.6		370.5		Long-term finance lease liabilities
Total finance lease liabilities	361.4		390.2
Total lease liabilities	$	1,755.6	$	1,987.6

The following table summarizes the composition of total lease cost during the fiscal periods presented:

	Fiscal Years Ended
	April 2, 2022		March 27, 2021		March 28, 2020		Location Recorded in Earnings
	(millions)
Operating lease cost	$	300.2	$	323.5	$	322.0	(a)
Finance lease costs:
Depreciation of leased assets	26.1		20.5		18.1		SG&A expenses
Accretion of lease liabilities	12.2		9.7		8.1		Interest expense
Variable lease cost	291.2		224.7		298.0		(b)
Short-term lease cost	3.6		4.9		5.5		SG&A expenses
Sublease income	(6.7)		(1.8)		(2.9)		Restructuring and other charges, net
Total lease cost	$	626.6	$	581.5	$	648.8

(a)During Fiscal 2022, $3.3 million was included within cost of goods sold, $276.2 million was included within SG&A expenses, and $20.7 million was included within restructuring and other charges, net. During Fiscal 2021, $3.4 million was included within cost of goods sold, $307.0 million was included within SG&A expenses, and $13.1 million was included within restructuring and other charges, net. During Fiscal 2020, $4.4 million was included within cost of goods sold, $307.3 million was included within SG&A expenses, and $10.3 million was included within restructuring and other charges, net.

(b)During Fiscal 2022, $4.6 million was included within cost of goods sold, $288.6 million was included within SG&A expenses, and a benefit of $2.0 million was included within restructuring and other charges, net. During Fiscal 2021, $4.5 million was included within cost of goods sold and $220.2 million was included within SG&A expenses. During Fiscal 2020, $4.7 million was included within cost of goods sold, $290.3 million was included within SG&A expenses, and $3.0 million was included within restructuring and other charges, net.

The following table summarizes certain cash flow information related to the Company's leases:

	Fiscal Year Ended
	April 2, 2022		March 27, 2021		March 28, 2020
	(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	384.6	$	360.6	$	383.9
Operating cash flows from finance leases	12.3		6.7		8.0
Financing cash flows from finance leases	23.1		13.9		13.6

See Note 21 for supplemental non-cash information related to ROU assets recorded in connection with the recognition of new lease liabilities.

The following table presents a maturity analysis summary of contractual cash payments for the Company's lease liabilities recorded on the consolidated balance sheet as of April 2, 2022:

	April 2, 2022
	Operating Leases		Finance Leases
	(millions)
Fiscal 2023	$	286.1	$	32.5
Fiscal 2024	276.6		34.3
Fiscal 2025	230.7		34.8
Fiscal 2026	162.9		35.1
Fiscal 2027	141.4		34.6
Fiscal 2028 and thereafter	396.5		276.1
Total lease payments	1,494.2		447.4
Less: interest	(100.0)		(86.0)
Total lease liabilities	$	1,394.2	$	361.4

Additionally, the Company has $23.9 million of future payment obligations relating to executed lease agreements for which the related lease terms had not yet commenced as of the end of Fiscal 2022, and, therefore, are not recorded on the consolidated balance sheet as of April 2, 2022.

The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheet:

	April 2, 2022				March 27, 2021
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted-average remaining lease term (years)	6.8		13.5		6.9		14.2
Weighted-average discount rate	1.9	%	3.2	%	2.0	%	3.3	%

See Note 3 for discussion of the Company's accounting policies related to leases.