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LEASES (Tables)

12 Months Ended

Feb. 27, 2021

Components of Lease Expense and Supplemental Cash Flow Information

The components of total lease cost, net consisted of the following (in millions):


	Classification	Fiscal 2020		Fiscal 2019
Operating lease cost (1)	Cost of sales and Selling and administrative expenses (3)	$	1,016.2	$	1,011.6
Finance lease cost
Amortization of lease assets	Cost of sales and Selling and administrative expenses (3)	67.4		90.4
Interest on lease liabilities	Interest expense, net	70.5		79.8
Variable lease cost (2)	Cost of sales and Selling and administrative expenses (3)	423.8		402.9
Sublease income	Net sales and other revenue	(91.3)		(111.8)
Total lease cost, net		$	1,486.6	$	1,472.9

(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.

The following table presents cash flow information and the weighted average lease term and discount rate for leases (dollars in millions):


	Fiscal 2020			Fiscal 2019
Gains on sale leaseback transactions, net	$	—		$	487.1
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	973.7			995.8
Operating cash flows from finance leases	70.5			79.8
Financing cash flows from finance leases	79.9			109.3
Right-of-use assets obtained in exchange for operating lease obligations	763.1			1,195.2
Right-of-use assets obtained in exchange for finance lease obligations	35.8			—
Impairment of right-of-use operating lease assets	15.9			15.4
Impairment of right-of-use finance lease assets	6.3			6.1
Weighted average remaining lease term - operating leases	11.7 years			12.1 years
Weighted average remaining lease term - finance leases	8.8 years			9.0 years
Weighted average discount rate - operating leases	6.7		%	7.0		%
Weighted average discount rate - finance leases	12.3		%	13.7		%

Balance Sheet Information

Balance sheet information related to leases as of February 27, 2021 and February 29, 2020 consisted of the following (in millions):


	Classification	February 27, 2021		February 29, 2020
Assets
Operating	Operating lease right-of-use assets	$	6,015.6	$	5,867.4
Finance	Property and equipment, net	384.9		430.7
Total lease assets		$	6,400.5	$	6,298.1
Liabilities
Current
Operating	Current operating lease obligations	$	605.3	$	563.1
Finance	Current maturities of long-term debt and finance lease obligations	81.5		83.4
Long-term
Operating	Long-term operating lease obligations	5,548.0		5,402.8
Finance	Long-term debt and finance lease obligations	531.2		583.3
Total lease liabilities		$	6,766.0	$	6,632.6

Future Minimum Lease Payments For Finance Lease Obligations

Future minimum lease payments for operating and finance lease obligations as of February 27, 2021 consisted of the following (in millions):


	Lease Obligations
Fiscal year	Operating Leases		Finance Leases
2021	$	926.0	$	124.7
2022	962.0		126.5
2023	893.2		118.7
2024	802.6		100.0
2025	714.4		85.3
Thereafter	4,849.2		362.0
Total future minimum obligations	9,147.4		917.2
Less interest	(2,994.1)		(304.5)
Present value of net future minimum lease obligations	6,153.3		612.7
Less current portion	(605.3)		(81.5)
Long-term obligations	$	5,548.0	$	531.2

Future Minimum Lease Payments For Operating Leases

Future minimum lease payments for operating and finance lease obligations as of February 27, 2021 consisted of the following (in millions):


	Lease Obligations
Fiscal year	Operating Leases		Finance Leases
2021	$	926.0	$	124.7
2022	962.0		126.5
2023	893.2		118.7
2024	802.6		100.0
2025	714.4		85.3
Thereafter	4,849.2		362.0
Total future minimum obligations	9,147.4		917.2
Less interest	(2,994.1)		(304.5)
Present value of net future minimum lease obligations	6,153.3		612.7
Less current portion	(605.3)		(81.5)
Long-term obligations	$	5,548.0	$	531.2

Lessee, Operating Lease, Disclosure

Rent expense and tenant rental income under operating leases under the previous lease accounting standard consisted of the following (in millions):


	Fiscal 2018
Minimum rent	$	853.5
Contingent rent	10.3
Total rent expense	863.8
Tenant rental income	(107.2)
Total rent expense, net of tenant rental income	$	756.6