LEASES

The Company leases certain office, distribution, retail and manufacturing facilities, land and equipment. Retail store leases may require the payment of minimum rentals and contingent rent based on a percentage of sales exceeding a stipulated amount. The lease agreements, which expire at various dates through 2062, are subject, in many cases, to renewal options and provide for the payment of taxes, insurance and maintenance. Certain leases contain escalation clauses resulting from the pass through of increases in operating costs, property taxes and the effect on costs from changes in consumer price indices.

The Company determines its lease payments based on predetermined rent escalations (including escalations based on consumer price indices), rent-free periods and other incentives. The Company recognizes rent expense on a straight-line basis over the related terms of such leases, beginning from when the Company takes possession of the leased facility. Variable rents, including contingent rent based on a percentage of sales and adjustments to consumer price indices, are recorded in the period such amounts and adjustments are determined. Lease terms include renewal options when exercise of such options is reasonably certain and within the control of the Company. There is generally no readily determinable discount rate implicit in the Company's leases. Accordingly, the Company uses its incremental borrowing rate for a term that corresponds to the applicable lease term in order to measure its lease liabilities and has elected to use such rates based on lease terms remaining as of February 1, 2019.

The amounts of the Company's right-of-use asset and current and non-current lease liabilities are presented separately on the Condensed Consolidated Balance Sheet as of April 30, 2019. Substantially all of the Company's leases are operating leases as of April 30, 2019. The Company records lease expense within Cost of sales for leases of manufacturing facilities and within Selling, general and administrative expenses for all other leases.

Amounts recognized in the Condensed Consolidated Statement of Earnings were as follows:



(in millions)	Three Months Ended April 30, 2019
Fixed operating lease expense	$	77.3
Variable operating lease expense	34.6
Sublease income	(1.2		)
Net lease expense	$	110.7

The weighted average remaining lease term was seven years and the weighted average discount rate was 4.2% for all of the Company's operating leases as of April 30, 2019.

The following table provides supplemental cash flow information related to the Company's operating leases:



(in millions)	Three Months Ended April 30, 2019
Cash flows from operating activities attributable to operating leases	$	70.9
Right-of-use assets obtained in exchange for operating lease liabilities	52.9

The following table reconciles the undiscounted cash flows expected to be paid in each of the next five fiscal years and thereafter to the operating lease liability recorded on the Condensed Consolidated Balance Sheet for operating leases existing as of April 30, 2019:



Years ending January 31,	Minimum Lease Payments as of April 30, 2019 (in millions)
2020 *	$	202.9
2021	244.2
2022	214.4
2023	175.5
2024	142.6
Thereafter	403.3
Total minimum lease payments	1,382.9
Less: amount of total minimum lease payments representing interest	(204.5		)
Present value of future total minimum lease payments	1,178.4
Less: current portion of lease liabilities	(226.3		)
Long-term lease liabilities	$	952.1

* This amount represents minimum lease payments for the nine month period from May 1, 2019 to January 31, 2020.

As previously disclosed in "Note J. Commitments and Contingencies" to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended January 31, 2019, under previous lease accounting, future minimum lease payments for operating leases having an initial or remaining non-cancelable lease term in excess of one year were as follows:



Years ending January 31,	Minimum Lease Payments as of January 31, 2019 (in millions)
2020	$	292.8
2021	239.2
2022	212.8
2023	177.4
2024	146.8
Thereafter	438.0
Total minimum lease payments	$	1,507.0

As of April 30, 2019, there were 11 executed agreements in respect of store relocations, new stores, office space and other facilities without commencement dates, which had total commitments of $109.2 million.