LEASES (Tables)

6 Months Ended

Nov. 24, 2019

LEASES

Schedule of leases

	Thirteen Weeks Ended November 24, 2019 (a)
	Operating		Finance
	Leases		Leases		Total
Operating lease costs	$	6.6	$	—	$	6.6
Short-term, variable, and other lease costs, net		0.8		—		0.8
Amortization of lease assets		—		0.8		0.8
Interest on lease liabilities		—		0.2		0.2
Total lease costs, net	$	7.4	$	1.0	$	8.4

	Twenty-Six Weeks Ended November 24, 2019 (a)
	Operating		Finance
	Leases		Leases		Total
Operating lease costs	$	11.4	$	—	$	11.4
Short-term, variable, and other lease costs, net		2.8		—		2.8
Amortization of lease assets		—		1.5		1.5
Interest on lease liabilities		—		0.4		0.4
Total lease costs, net	$	14.2	$	1.9	$	16.1

(a) Supply-chain-related lease costs are included in “Cost of sales” and the remainder is recorded in “Selling, general, and administrative expenses.” Interest on lease liabilities is included in “Interest expense, net,” in our Consolidated Statements of Earnings.

Schedule of operating and finance leases, with terms greater than one year

	As of November 24, 2019
	Operating		Finance
	Leases		Leases		Total
Assets:
Operating lease assets	$	162.9	$	—	$	162.9
Property, plant and equipment, net (a)		—		12.6		12.6
Total leased assets	$	162.9	$	12.6	$	175.5
Liabilities:
Lease liabilities due within one year:
Accrued liabilities	$	23.5	$	—	$	23.5
Current portion of long-term debt and financing obligations		—		2.4		2.4
Long-term lease liabilities:
Other noncurrent liabilities		141.3		—		141.3
Long-term debt and financing obligations, excluding current portion		—		12.1		12.1
Total lease liabilities	$	164.8	$	14.5	$	179.3

(a) Finance leases are net of accumulated amortization of $11.3 million.

Schedule of maturities of lease liabilities for operating leases - ASC 842

	Operating		Finance
	Leases		Leases		Total
2020 (remainder of year)	$	14.5	$	1.8	$	16.3
2021		29.6		3.1		32.7
2022		25.7		2.8		28.5
2023		18.2		1.9		20.1
2024		17.8		1.1		18.9
2025		15.9		0.9		16.8
Thereafter		73.7		5.8		79.5
Total lease payments		195.4		17.4		212.8
Less: Interest (a)		(30.6)		(2.9)		(33.5)
Present value of lease liabilities	$	164.8	$	14.5	$	179.3
Weighted-average remaining lease term (years):		8.4		9.5
Weighted-average discount rate:		3.9%		3.3%

(a) As the implicit rate is not readily determinable for most of our leases, we use an incremental borrowing rate to determine the initial present value of lease payments. We use a collateralized rate and apply the rate based on the currency of the lease, which is updated quarterly for the measurement of new lease liabilities.

Schedule of maturities of lease liabilities for finance leases - ASC 842

	Operating		Finance
	Leases		Leases		Total
2020 (remainder of year)	$	14.5	$	1.8	$	16.3
2021		29.6		3.1		32.7
2022		25.7		2.8		28.5
2023		18.2		1.9		20.1
2024		17.8		1.1		18.9
2025		15.9		0.9		16.8
Thereafter		73.7		5.8		79.5
Total lease payments		195.4		17.4		212.8
Less: Interest (a)		(30.6)		(2.9)		(33.5)
Present value of lease liabilities	$	164.8	$	14.5	$	179.3
Weighted-average remaining lease term (years):		8.4		9.5
Weighted-average discount rate:		3.9%		3.3%

(a) As the implicit rate is not readily determinable for most of our leases, we use an incremental borrowing rate to determine the initial present value of lease payments. We use a collateralized rate and apply the rate based on the currency of the lease, which is updated quarterly for the measurement of new lease liabilities.

Schedule of maturities of lease liabilities for operating leases - ASC 840

	Operating		Capital
	Leases		Leases (a)		Total
2020	$	18.6	$	7.5	$	26.1
2021		16.5		7.2		23.7
2022		15.7		7.2		22.9
2023		10.5		6.4		16.9
2024		8.6		5.9		14.5
Thereafter		26.6		73.5		100.1
Total lease payments	$	96.5	$	107.7	$	204.2
Discount to present value				(28.8)		(28.8)
Total lease liability			$	78.9	$	175.4
Current portion of financing obligations				(4.3)		(4.3)
Long-term financing obligations, excluding current portion			$	74.6	$	171.1

(a) Includes unamortized portion of a deferred gain related to a sale leaseback that was eliminated from the Consolidated Balance Sheet as part of the cumulative-effect adjustment at adoption of ASC 842. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for more information.

Schedule of maturities of lease liabilities for capital leases - ASC 840

	Operating		Capital
	Leases		Leases (a)		Total
2020	$	18.6	$	7.5	$	26.1
2021		16.5		7.2		23.7
2022		15.7		7.2		22.9
2023		10.5		6.4		16.9
2024		8.6		5.9		14.5
Thereafter		26.6		73.5		100.1
Total lease payments	$	96.5	$	107.7	$	204.2
Discount to present value				(28.8)		(28.8)
Total lease liability			$	78.9	$	175.4
Current portion of financing obligations				(4.3)		(4.3)
Long-term financing obligations, excluding current portion			$	74.6	$	171.1

(a) Includes unamortized portion of a deferred gain related to a sale leaseback that was eliminated from the Consolidated Balance Sheet as part of the cumulative-effect adjustment at adoption of ASC 842. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for more information.

Schedule of supplemental cash flow information related to leases

	Twenty-Six Weeks Ended November 24, 2019
	Operating		Finance
	Leases		Leases		Total
Cash paid for amounts included in the measurement of lease liabilities:
Cash used for operating activities	$	11.1	$	—	$	11.1
Cash used for financing activities		—		1.0		1.0
Noncash investing and financing activities:
Asset obtained in exchange for new operating lease obligations		20.2		—		20.2
Assets obtained in exchange for new finance lease obligations		—		1.9		1.9