LEASES

12 Months Ended

May 29, 2022

LEASES

LEASES

8.    LEASES

We lease various real estate, including certain operating facilities, warehouses, office space, and land. We also lease material handling equipment, vehicles, and certain other equipment. Our leases have remaining lease terms of one to 18 years.

The components of total lease costs, net, consisted of the following:

	For the Fiscal Year Ended May (a)
(in millions)	2022		2021		2020
Operating lease costs	$	33.9	$	33.2	$	29.7
Short-term and variable lease costs		7.8		9.0		5.8
Sublease income		(4.9)		(3.4)		(2.7)
Finance lease costs:
Amortization of lease assets		1.1		1.9		3.2
Interest on lease obligations		0.2		0.3		0.6
Total lease costs, net	$	38.1	$	41.0	$	36.6

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

Operating and finance leases, with initial terms greater than one year, were as follows:

		May 29,		May 30,
(in millions)	Classification	2022		2021
Assets:
Operating lease assets	Operating lease assets	$	119.0	$	141.7
Finance lease assets	Property, plant and equipment, net (a)		4.4		5.4
Total leased assets		$	123.4	$	147.1
Liabilities:
Lease obligations due within one year:
Operating lease obligations	Accrued liabilities	$	22.4	$	29.1
Finance lease obligations	Current portion of long-term debt and financing obligations		0.9		0.7
Long-term lease obligations:
Operating lease obligations	Other noncurrent liabilities		104.7		120.3
Finance lease obligations	Long-term debt and financing obligations, excluding current portion		6.1		6.6
Total lease obligations		$	134.1	$	156.7

(a) Finance leases are net of accumulated amortization of $5.8 million and $4.7 million at May 29, 2022 and May 30, 2021, respectively.

The maturities of our lease obligations for operating and finance leases at May 29, 2022 for the next five fiscal years and thereafter are as follows:

	Operating		Finance
(in millions, except for lease term and discount rate amounts)	Leases		Leases
2023	$	25.2	$	1.2
2024		21.3		1.1
2025		18.9		1.0
2026		15.9		0.8
2027		14.9		0.6
Thereafter		52.8		4.1
Total lease payments		149.0		8.8
Less: Interest		(21.9)		(1.8)
Present value of lease obligations	$	127.1	$	7.0
Weighted-average remaining lease term (years)		7.4		13.4
Weighted-average discount rate		4.0%		3.1%

Supplemental cash flow information related to leases was as follows:

	For the Fiscal Years Ended May
(in millions)	2022		2021		2020
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows for operating leases	$	29.1	$	30.9	$	26.8
Financing cash flows for finance leases		1.1		1.7		2.6
Noncash investing and financing activities:
Assets obtained in exchange for new operating lease obligations		1.4		5.2		41.4
Assets obtained in exchange for new finance lease obligations		0.5		—		2.2