XML 68 R37.htm IDEA: XBRL DOCUMENT

Leases (Tables)

6 Months Ended

Nov. 24, 2019

Supplemental cash flow information related to leases:



	Six Months Ended
(in millions)	November 24, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	182.0
Operating cash flows from finance leases	7.3
Financing cash flows from finance leases	2.5
Right-of-use assets obtained in exchange for new operating lease liabilities	106.6
Right-of-use assets obtained in exchange for new finance lease liabilities	139.3

The components of lease expense in the consolidated statement of earnings are as follows:



	Three Months Ended		Six Months Ended
(in millions)	November 24, 2019		November 24, 2019
Operating lease expense	$	98.8	$	196.6
Finance lease expense
Amortization of leased assets	2.1		3.6
Interest on lease liabilities	4.0		7.3
Variable lease expense	1.4		2.9
Total lease expense	$	106.3	$	210.4

Components of Lease Assets and Liabilities

The weighted-average remaining lease terms and discount rates as of November 24, 2019 are as follows:



	November 24, 2019
(in millions)	Weighted-Average Remaining Lease Term (Years)	Weighted-Average Discount Rate (1)
Operating leases	17.2	4.2	%
Finance leases	19.4	5.0	%


(1)	We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument.

The components of lease assets and liabilities on the consolidated balance sheet are as follows:



(in millions)	Balance Sheet Classification	November 24, 2019
Operating lease right-of-use assets	Operating lease right-of-use assets	$	4,029.0
Finance lease right-of-use assets	Land, buildings and equipment, net	188.0
Total lease assets, net		$	4,217.0

Operating lease liabilities - current	Other current liabilities	$	152.1
Finance lease liabilities - current	Other current liabilities	6.8
Operating lease liabilities - non-current	Operating lease liabilities - non-current	4,306.2
Finance lease liabilities - non-current	Other liabilities	320.8
Total lease liabilities		$	4,785.9

Maturities of Operating Lease Liabilities

The annual maturities of our lease liabilities as of November 24, 2019 are as follows:



(in millions)
Fiscal Year	Operating Leases			Finance Leases
Six months ended May 31, 2020	$	185.4		$	11.5
2021	377.9			24.9
2022	379.9			25.1
2023	384.0			25.6
2024	386.4			25.9
2025	390.9			26.1
Thereafter	4,448.2			391.3
Total future lease commitments (1)	$	6,552.7		$	530.4
Less imputed interest	(2,094.4		)	(202.8		)
Present value of lease liabilities (2)	$	4,458.3		$	327.6


(1)	Of the $6.55 billion of total future operating lease commitments and $530.4 million of total future finance lease commitments, $2.99 billion and $307.0 million, respectively, are noncancelable.

(2)

Excludes approximately $182.7 million of net present value of lease payments related to 36 real estate leases signed, but not yet commenced.

Maturities of Financing Lease Liabilities

The annual maturities of our lease liabilities as of November 24, 2019 are as follows:



(in millions)
Fiscal Year	Operating Leases			Finance Leases
Six months ended May 31, 2020	$	185.4		$	11.5
2021	377.9			24.9
2022	379.9			25.1
2023	384.0			25.6
2024	386.4			25.9
2025	390.9			26.1
Thereafter	4,448.2			391.3
Total future lease commitments (1)	$	6,552.7		$	530.4
Less imputed interest	(2,094.4		)	(202.8		)
Present value of lease liabilities (2)	$	4,458.3		$	327.6


(1)	Of the $6.55 billion of total future operating lease commitments and $530.4 million of total future finance lease commitments, $2.99 billion and $307.0 million, respectively, are noncancelable.

(2)

Excludes approximately $182.7 million of net present value of lease payments related to 36 real estate leases signed, but not yet commenced.

Annual Future Lease Commitments

The annual future lease commitments under capital lease and financing lease obligations and noncancelable operating leases, including those related to restaurants reported as discontinued operations, for each of the five fiscal years subsequent to May 26, 2019 and thereafter is as follows:



(in millions)
Fiscal Year	Capital			Financing			Operating
2020	$	8.9		$	12.2		$	372.9
2021	8.9			12.4			355.0
2022	8.8			12.6			326.7
2023	8.9			12.8			299.8
2024	8.7			13.0			262.7
Thereafter	81.4			128.0			1,434.0
Total future lease commitments	$	125.6		$	191.0		$	3,051.1
Less imputed interest (at 6.5%), (various)	(41.6		)	(99.7		)
Present value of future lease commitments	$	84.0		$	91.3
Less current maturities	(4.1		)	(2.7		)
Obligations under capital and financing leases, net of current maturities	$	79.9		$	88.6