INCOME TAXES (Tables)

12 Months Ended

May 29, 2022

Income Tax Disclosure [Abstract]

Allocation Of Total Income Tax Expense

Total income tax expense (benefit) was allocated as follows:

	Fiscal Year Ended
(in millions)	May 29, 2022		May 30, 2021		May 31, 2020
Earnings (loss) from continuing operations	$	138.8	$	(55.9)	$	(111.8)
Loss from discontinued operations	(0.2)		(3.2)		(0.9)
Total consolidated income tax expense (benefit)	$	138.6	$	(59.1)	$	(112.7)

Components Of Earnings Before Income Tax And Provision For Income Taxes

The components of earnings (loss) from continuing operations before income taxes and the provision for income taxes thereon are as follows:

	Fiscal Year Ended
(in millions)	May 29, 2022		May 30, 2021		May 31, 2020
Earnings (loss) from continuing operations before income taxes:
U.S.	$	1,089.5	$	575.1	$	(165.1)
Foreign	4.0		1.4		4.1
Earnings (loss) from continuing operations before income taxes	$	1,093.5	$	576.5	$	(161.0)
Income taxes:
Current:
Federal	$	90.7	$	(226.9)	$	5.8
State and local	72.7		5.3		15.9
Foreign	1.4		(0.2)		1.0
Total current	$	164.8	$	(221.8)	$	22.7
Deferred (principally U.S.):
Federal	$	10.3	$	151.9	$	(109.0)
State and local	(36.3)		14.0		(25.5)
Total deferred	$	(26.0)	$	165.9	$	(134.5)
Total income tax expense (benefit)	$	138.8	$	(55.9)	$	(111.8)

Effective Income Tax Rate Reconciliation

The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings:

	Fiscal Year Ended
	May 29, 2022		May 30, 2021		May 31, 2020
U.S. statutory rate	21.0	%	21.0	%	21.0	%
State and local income taxes, net of federal tax benefits	2.5		2.7		3.7
Benefit of federal income tax credits	(9.8)		(11.1)		47.3
Stock-based compensation tax benefit	(0.9)		(1.9)		5.0
Nondeductible goodwill impairment	—		—		(16.4)
Deferred revaluation (1)	—		—		6.3
Federal net operating loss	—		(20.6)		—
Other, net	(0.1)		0.2		2.5
Effective income tax rate (2)	12.7	%	(9.7)	%	69.4	%

(1)In fiscal 2020, we amended tax returns that were subject to a 35.0 percent or 29.4 percent statutory rate. Corresponding deferred tax balances were revalued at 21.0 percent.

(2)Our effective income tax rate of 12.7 percent for fiscal 2022 represents income tax expense as we generated pre-tax income from continuing operations in fiscal 2022. Our effective income tax rate of (9.7) percent for fiscal 2021 represents an income tax benefit as we generated pre-tax income from continuing operations in fiscal 2021. Our effective income tax rate of 69.4 percent for fiscal 2020 represents an income tax benefit as we generated a pre-tax loss from continuing operations in fiscal 2020.

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

(in millions)
Balances at May 30, 2021	$	51.8
Additions related to current-year tax positions	4.0
Reductions related to prior-year tax positions	(26.1)
Net reductions due to settlements with taxing authorities	(4.5)
Reductions to tax positions due to statute expiration	(3.0)
Balances at May 29, 2022	$	22.2

Interest Expense On Income Tax Expense (Benefits)

Interest included in income tax expense in our consolidated statements of earnings is as follows:

	Fiscal Year Ended
(in millions)	May 29, 2022		May 30, 2021		May 31, 2020
Interest recorded on unrecognized tax benefits	$	1.3	$	0.7	$	1.8
Interest recorded on income tax receivables	$	(3.1)	$	—	$	—
Total (Benefit) Expense	$	(1.8)	$	0.7	$	1.8

Tax Effects On Deferred Tax Assets And Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:

(in millions)	May 29, 2022		May 30, 2021
Accrued liabilities	$	80.0	$	65.4
Compensation and employee benefits	123.6		120.4
Lease liabilities	1,227.3		1,189.3
Net operating loss, credit and charitable contribution carryforwards	121.0		195.5
Other	6.3		21.8
Gross deferred tax assets	$	1,558.2	$	1,592.4
Valuation allowance	(20.8)		(26.6)
Deferred tax assets, net of valuation allowance	$	1,537.4	$	1,565.8
Trademarks and other acquisition related intangibles	(178.7)		(171.5)
Buildings and equipment	(402.1)		(492.9)
Capitalized software and other assets	(23.5)		(22.3)
Lease assets	(1,120.4)		(1,089.9)
Other	(13.8)		(10.8)
Gross deferred tax liabilities	$	(1,738.5)	$	(1,787.4)
Net deferred tax liabilities	$	(201.1)	$	(221.6)