LEASES

12 Months Ended

May 28, 2023

Leases [Abstract]

LEASES

LEASES

The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 28, 2023 and May 29, 2022 are as follows:

(in millions)	May 28, 2023		May 29, 2022
Operating lease expense	$	377.9	$	372.0
Finance lease expense
Amortization of leased assets	41.2		29.6
Interest on lease liabilities	44.3		32.3
Variable lease expense	22.6		17.0
Total lease expense	$	486.0	$	450.9

The components of lease assets and liabilities on the consolidated balance sheet as of May 28, 2023 and May 29, 2022 are as follows:

(in millions)	Balance Sheet Classification	May 28, 2023		May 29, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	3,373.9	$	3,465.1
Finance lease right-of-use assets	Land, buildings and equipment, net	958.1		838.1
Total lease assets, net		$	4,332.0	$	4,303.2
Operating lease liabilities - current	Other current liabilities	$	182.5	$	185.8
Finance lease liabilities - current	Other current liabilities	13.5		16.6
Operating lease liabilities - non-current	Operating lease liabilities - non-current	3,667.6		3,755.8
Finance lease liabilities - non-current	Other liabilities	1,172.6		1,018.6
Total lease liabilities		$	5,036.2	$	4,976.8

Supplemental cash flow information related to leases for the fiscal years ended May 28, 2023 and May 29, 2022:

(in millions)	May 28, 2023		May 29, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	367.6	$	374.6
Operating cash flows from finance leases	44.3		32.3
Financing cash flows from finance leases	19.8		12.9
Right-of-use assets obtained in exchange for new operating lease liabilities	131.5		26.0
Right-of-use assets obtained in exchange for new finance lease liabilities	75.1		187.8
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance	86.3		171.9

The weighted-average remaining lease terms and discount rates as of May 28, 2023 and May 29, 2022 are as follows:

(in millions)	May 28, 2023		May 29, 2022
Weighted-Average Remaining Lease Term (Years)
Operating leases	15.2		15.4
Finance leases	22.5		22.6
Weighted-Average Discount Rate (1)
Operating leases	4.3	%	4.2	%
Finance leases	4.2	%	3.9	%

(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 annual maturities of our lease liabilities as of May 28, 2023 are as follows:

(in millions)
Fiscal Year	Operating Leases		Finance Leases
2024	378.7		72.7
2025	385.8		74.3
2026	388.9		76.1
2027	392.3		77.5
2028	383.3		79.0
Thereafter	3,534.5		1,527.2
Total future lease commitments (1)	$	5,463.5	$	1,906.8
Less imputed interest	(1,613.4)		(720.7)
Present value of lease liabilities (2)	$	3,850.1	$	1,186.1

(1)Of the $5,463.5 million of total future operating lease commitments and $1,906.8 million of total future finance lease commitments, $2,376.5 million and $662.6 million, respectively, are non-cancelable.

(2)Excludes approximately $107.6 million of net present value of lease payments related to 25 real estate leases signed, but not yet commenced.

LEASES

LEASES

The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 28, 2023 and May 29, 2022 are as follows:

(in millions)	May 28, 2023		May 29, 2022
Operating lease expense	$	377.9	$	372.0
Finance lease expense
Amortization of leased assets	41.2		29.6
Interest on lease liabilities	44.3		32.3
Variable lease expense	22.6		17.0
Total lease expense	$	486.0	$	450.9

The components of lease assets and liabilities on the consolidated balance sheet as of May 28, 2023 and May 29, 2022 are as follows:

(in millions)	Balance Sheet Classification	May 28, 2023		May 29, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	3,373.9	$	3,465.1
Finance lease right-of-use assets	Land, buildings and equipment, net	958.1		838.1
Total lease assets, net		$	4,332.0	$	4,303.2
Operating lease liabilities - current	Other current liabilities	$	182.5	$	185.8
Finance lease liabilities - current	Other current liabilities	13.5		16.6
Operating lease liabilities - non-current	Operating lease liabilities - non-current	3,667.6		3,755.8
Finance lease liabilities - non-current	Other liabilities	1,172.6		1,018.6
Total lease liabilities		$	5,036.2	$	4,976.8

Supplemental cash flow information related to leases for the fiscal years ended May 28, 2023 and May 29, 2022:

(in millions)	May 28, 2023		May 29, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	367.6	$	374.6
Operating cash flows from finance leases	44.3		32.3
Financing cash flows from finance leases	19.8		12.9
Right-of-use assets obtained in exchange for new operating lease liabilities	131.5		26.0
Right-of-use assets obtained in exchange for new finance lease liabilities	75.1		187.8
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance	86.3		171.9

The weighted-average remaining lease terms and discount rates as of May 28, 2023 and May 29, 2022 are as follows:

(in millions)	May 28, 2023		May 29, 2022
Weighted-Average Remaining Lease Term (Years)
Operating leases	15.2		15.4
Finance leases	22.5		22.6
Weighted-Average Discount Rate (1)
Operating leases	4.3	%	4.2	%
Finance leases	4.2	%	3.9	%

(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 annual maturities of our lease liabilities as of May 28, 2023 are as follows:

(in millions)
Fiscal Year	Operating Leases		Finance Leases
2024	378.7		72.7
2025	385.8		74.3
2026	388.9		76.1
2027	392.3		77.5
2028	383.3		79.0
Thereafter	3,534.5		1,527.2
Total future lease commitments (1)	$	5,463.5	$	1,906.8
Less imputed interest	(1,613.4)		(720.7)
Present value of lease liabilities (2)	$	3,850.1	$	1,186.1

(1)Of the $5,463.5 million of total future operating lease commitments and $1,906.8 million of total future finance lease commitments, $2,376.5 million and $662.6 million, respectively, are non-cancelable.

(2)Excludes approximately $107.6 million of net present value of lease payments related to 25 real estate leases signed, but not yet commenced.