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Note 3 - Long-term Debt

12 Months Ended

May 28, 2023

3. LONG-TERM DEBT

	*May 28, 2023*			*May 29, 2022*
5.4% senior debt due November 2048	$	1,000.0		$	1,000.0
4.65% senior debt due January 2043		176.7			176.7
6.625% senior debt due August 2039		91.4			91.4
5.3% senior debt due November 2038		1,000.0			1,000.0
8.25% senior debt due September 2030		300.0			300.0
4.85% senior debt due November 2028		1,300.0			1,300.0
7.0% senior debt due October 2028		382.2			382.2
1.375% senior debt due November 2027		1,000.0			1,000.0
6.7% senior debt due August 2027		9.2			9.2
7.125% senior debt due October 2026		262.5			262.5
4.6% senior debt due November 2025		1,000.0			1,000.0
SOFR plus 1.35% term loan due August 2025		500.0			—
4.3% senior debt due May 2024		1,000.0			1,000.0
0.5% senior debt due August 2023		500.0			500.0
3.2% senior debt due January 2023		—			437.0
3.25% senior debt due September 2022		—			250.0
0.79% to 9.59% lease financing obligations due on various dates through 2036		112.6			131.3
Other indebtedness		0.1			0.1
Total face value of debt		8,634.7			8,840.4
Unamortized fair value adjustment	18.5				19.2
Unamortized discounts		(20.1	)		(23.4	)
Unamortized debt issuance costs		(35.8	)		(40.7	)
Less current installments		(1,516.0	)		(707.3	)
Total long-term debt	$	7,081.3		$	8,088.2

The aggregate minimum principal maturities of the long-term debt for each of the five fiscal years following May 28, 2023, are as follows:

2024	$	1,517.4
2025		14.5
2026		1,512.0
2027		277.4
2028		1,015.3

In the third quarter of fiscal 2023, we repaid the remaining outstanding $437.0 million aggregate principal amount of our 3.20% senior notes on their maturity date of January 25, 2023. The repayment was primarily funded by the issuance of commercial paper.

In the first quarter of fiscal 2023, we entered into an unsecured Term Loan Agreement (the "Term Loan Agreement") with a syndicate of financial institutions. The Term Loan Agreement provided for delayed draw term loans to the Company in an aggregate principal amount of up to $500.0 million. The Term Loan Agreement matures on August 26, 2025. During the second quarter of fiscal 2023, we borrowed the full $500.0 million aggregate principal amount available under the Term Loan Agreement. The proceeds were used to repay the full outstanding $250.0 million aggregate principal amount of our 3.25% senior notes on their maturity date of September 15, 2022, as well as to repay outstanding borrowings under our commercial paper program. Borrowings under the Term Loan Agreement bear interest at the sum of Term SOFR (as defined in the Term Loan Agreement), plus a 0.10% per annum rate spread adjustment, plus a percentage spread (ranging from 0.90% per annum to 1.375% per annum) based on the Company's senior unsecured long-term indebtedness ratings. The Company may voluntarily prepay term loans under the Term Loan Agreement, in whole or in part, without premium or penalty, subject to certain conditions.

In the first quarter of fiscal 2022, we issued $500.0 million aggregate principal amount of 0.500% senior notes due August 11, 2023.

In the fourth quarter of fiscal 2021, we repaid the remaining outstanding $195.9 million aggregate principal amount of our 9.75% subordinated notes on the maturity date of March 1, 2021.

In the third quarter of fiscal 2021, we redeemed $400.0 million aggregate principal amount of our 3.20% senior notes due January 25, 2023, prior to maturity, resulting in a loss of $24.4 million within SG&A expenses as a cost of early extinguishment of debt.

In the second quarter of fiscal 2021, we issued $1.0 billion aggregate principal amount of 1.375% senior notes due November 1, 2027 (the "2027 Senior Notes"). We also redeemed the entire outstanding $1.20 billion aggregate principal amount of our 3.80% senior notes prior to their maturity date of October 22, 2021, resulting in a net loss of $44.3 million within SG&A expenses as a cost of early extinguishment of debt. This redemption was primarily funded using the net proceeds from the issuance of the 2027 Senior Notes.

In the second quarter of fiscal 2021, we also repaid the entire outstanding $500.0 million aggregate principal amount of our floating rate notes on the maturity date of October 9, 2020.

In the first quarter of fiscal 2021, we repaid the remaining outstanding $126.6 million aggregate principal amount of our 4.95% senior notes on their maturity date of August 15, 2020.

Net interest expense consists of:

	*2023*			*2022*			*2021*
Long-term debt	$	402.1		$	393.1		$	430.0
Short-term debt		18.8			2.3			2.5
Interest income		(3.9	)		(2.1	)		(1.9	)
Interest capitalized		(7.4	)		(13.4	)		(10.2	)
	$	409.6		$	379.9		$	420.4

In the first quarter of fiscal 2019, we entered into deal-contingent forward starting interest rate swap contracts to hedge a portion of the interest rate risk related to our anticipated issuance of long-term debt to help finance the Pinnacle acquisition. During the second quarter of fiscal 2019, we terminated the interest rate swap contracts and received proceeds of $47.5 million. This gain was deferred in accumulated other comprehensive income and is being amortized as a reduction of interest expense over the lives of the related debt instruments. Our net interest expense was reduced by $3.4 million, $3.3 million, and $3.3 million in fiscal 2023, 2022, and 2021, respectively, due to the impact of these interest rate swap contracts.

Interest paid was $416.3 million, $393.9 million, and $445.6 million in fiscal 2023, 2022, and 2021, respectively.