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Leases (Tables)

12 Months Ended

May 31, 2020

Supplemental cash flow information related to leases for the fiscal year ended May 31, 2020:



(in millions)	May 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	371.7
Operating cash flows from finance leases	15.9
Financing cash flows from finance leases	5.2
Right-of-use assets obtained in exchange for new operating lease liabilities	171.3
Right-of-use assets obtained in exchange for new finance lease liabilities	191.9

The components of lease expense for continuing operations in the consolidated statement of earnings for the fiscal year ended May 31, 2020 are as follows:



(in millions)	May 31, 2020
Operating lease expense	$	403.2
Finance lease expense
Amortization of leased assets	8.9
Interest on lease liabilities	15.9
Variable lease expense	5.4
Total lease expense	$	433.4

Components of Lease Assets and Liabilities

The weighted-average remaining lease terms and discount rates as of May 31, 2020 are as follows:



(in millions)	Weighted-Average Remaining Lease Term (Years)	Weighted-Average Discount Rate (1)
Operating leases	16.9	4.2	%
Finance leases	20.6	4.8	%

(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 as of May 31, 2020 are as follows:



(in millions)	Balance Sheet Classification	May 31, 2020
Operating lease right-of-use assets	Operating lease right-of-use assets	$	3,969.2
Finance lease right-of-use assets	Land, buildings and equipment, net	235.2
Total lease assets, net		$	4,204.4

Operating lease liabilities - current	Other current liabilities	$	160.6
Finance lease liabilities - current	Other current liabilities	5.7
Operating lease liabilities - non-current	Operating lease liabilities - non-current	4,276.3
Finance lease liabilities - non-current	Other liabilities	368.4
Total lease liabilities		$	4,811.0

Maturities of Operating Lease Liabilities

The annual maturities of our lease liabilities as of May 31, 2020 are as follows:



(in millions)
Fiscal Year	Operating Leases			Finance Leases
2021	378.3			25.6
2022	386.3			26.8
2023	388.7			27.3
2024	391.3			27.5
2025	396.0			28.0
Thereafter	4,531.4			471.2
Total future lease commitments (1)	$	6,472.0		$	606.4
Less imputed interest	(2,035.1		)	(232.3		)
Present value of lease liabilities (2)	$	4,436.9		$	374.1


(1)	Of the $6.47 billion of total future operating lease commitments and $606.4 million of total future finance lease commitments, $2.94 billion and $323.5 million, respectively, are noncancelable.

(2)

Excludes approximately $114.2 million of net present value of lease payments related to 28 real estate leases signed, but not yet commenced.

Maturities of Financing Lease Liabilities

The annual maturities of our lease liabilities as of May 31, 2020 are as follows:



(in millions)
Fiscal Year	Operating Leases			Finance Leases
2021	378.3			25.6
2022	386.3			26.8
2023	388.7			27.3
2024	391.3			27.5
2025	396.0			28.0
Thereafter	4,531.4			471.2
Total future lease commitments (1)	$	6,472.0		$	606.4
Less imputed interest	(2,035.1		)	(232.3		)
Present value of lease liabilities (2)	$	4,436.9		$	374.1


(1)	Of the $6.47 billion of total future operating lease commitments and $606.4 million of total future finance lease commitments, $2.94 billion and $323.5 million, respectively, are noncancelable.

(2)

Excludes approximately $114.2 million of net present value of lease payments related to 28 real estate leases signed, but not yet commenced.

Schedule of Rent Expense

Rent expense incurred related to continuing operations for fiscal 2019 and fiscal 2018 is as follows:



	Fiscal Year Ended
(in millions)	May 26, 2019		May 27, 2018
Restaurant minimum rent	$	338.3	$	321.8
Restaurant rent averaging expense	27.6		30.2
Restaurant percentage rent	7.3		7.2
Other	20.3		20.6
Total rent expense	$	393.5	$	379.8

Schedule Of Future Minimum Lease Payments For Capital And Operating Leases

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