LEASES (Tables)

12 Months Ended

May 29, 2022

Leases [Abstract]

Components of Lease Expenses and Cash Flow Information

The components of lease expense for continuing operations in the consolidated statement of earnings for the fiscal years ended May 29, 2022 and May 30, 2021 are as follows:

(in millions)	May 29, 2022		May 30, 2021
Operating lease expense	$	372.0	$	384.6
Finance lease expense
Amortization of leased assets	29.6		14.4
Interest on lease liabilities	32.3		20.9
Variable lease expense	17.0		6.9
Total lease expense	$	450.9	$	426.8

Components of Lease Assets and Liabilities

The components of lease assets and liabilities on the consolidated balance sheet as of May 29, 2022 and May 30, 2021 are as follows:

(in millions)	Balance Sheet Classification	May 29, 2022		May 30, 2021
Operating lease right-of-use assets	Operating lease right-of-use assets	$	3,465.1	$	3,776.4
Finance lease right-of-use assets	Land, buildings and equipment, net	838.1		405.6
Total lease assets, net		$	4,303.2	$	4,182.0
Operating lease liabilities - current	Other current liabilities	$	185.8	$	176.8
Finance lease liabilities - current	Other current liabilities	16.6		7.3
Operating lease liabilities - non-current	Operating lease liabilities - non-current	3,755.8		4,088.5
Finance lease liabilities - non-current	Other liabilities	1,018.6		555.3
Total lease liabilities		$	4,976.8	$	4,827.9

The weighted-average remaining lease terms and discount rates as of May 29, 2022 and May 30, 2021 are as follows:

(in millions)	May 29, 2022		May 30, 2021
Weighted-Average Remaining Lease Term (Years)
Operating leases	15.4		16.2
Finance leases	22.6		21.8
Weighted-Average Discount Rate (1)
Operating leases	4.2	%	4.2	%
Finance leases	3.9	%	4.4	%

(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.

Schedule of Cash Flow, Supplemental Disclosures

Supplemental cash flow information related to leases for the fiscal years ended May 29, 2022 and May 30, 2021:

(in millions)	May 29, 2022		May 30, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	374.6	$	369.2
Operating cash flows from finance leases	32.3		20.9
Financing cash flows from finance leases	12.9		7.1
Right-of-use assets obtained in exchange for new operating lease liabilities	26.0		20.1
Right-of-use assets obtained in exchange for new finance lease liabilities	187.8		68.2
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance	171.9		122.6

Statements of Cash Flows

	Fiscal Year Ended
(in millions)	May 29, 2022		May 30, 2021		May 31, 2020
Cash paid during the fiscal year for:
Interest, net of amounts capitalized	$	65.0	$	62.5	$	57.6
Income taxes, net of refunds	$	102.6	$	62.5	$	0.3
Non-cash investing and financing activities:
Increase in land, buildings and equipment through accrued purchases	$	48.2	$	29.1	$	23.2

Maturities of Operating Lease Liabilities

The annual maturities of our lease liabilities as of May 29, 2022 are as follows:

(in millions)
Fiscal Year	Operating Leases		Finance Leases
2023	373.0		60.7
2024	375.4		63.4
2025	380.0		63.9
2026	381.7		65.2
2027	384.5		66.4
Thereafter	3,653.0		1,290.2
Total future lease commitments (1)	$	5,547.6	$	1,609.8
Less imputed interest	(1,606.0)		(574.6)
Present value of lease liabilities (2)	$	3,941.6	$	1,035.2

(1)Of the $5,547.6 million of total future operating lease commitments and $1,609.8 million of total future finance lease commitments, $2,483.9 million and $603.2 million, respectively, are non-cancelable.

(2)Excludes approximately $200.9 million of net present value of lease payments related to 49 real estate leases signed, but not yet commenced.

Maturities of Financing Lease Liabilities

The annual maturities of our lease liabilities as of May 29, 2022 are as follows:

(in millions)
Fiscal Year	Operating Leases		Finance Leases
2023	373.0		60.7
2024	375.4		63.4
2025	380.0		63.9
2026	381.7		65.2
2027	384.5		66.4
Thereafter	3,653.0		1,290.2
Total future lease commitments (1)	$	5,547.6	$	1,609.8
Less imputed interest	(1,606.0)		(574.6)
Present value of lease liabilities (2)	$	3,941.6	$	1,035.2

(1)Of the $5,547.6 million of total future operating lease commitments and $1,609.8 million of total future finance lease commitments, $2,483.9 million and $603.2 million, respectively, are non-cancelable.

(2)Excludes approximately $200.9 million of net present value of lease payments related to 49 real estate leases signed, but not yet commenced.