v3.24.2
LEASES (Tables)
 12 Months Ended
May 26, 2024
Leases [Abstract]  
Components of Lease Expenses and Cash Flow Information
The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 26, 2024, May 28, 2023 and May 29, 2022 are as follows:
(in millions)May 26, 2024May 28, 2023May 29, 2022
Operating lease expense$404.6 $377.9 $372.0 
Finance lease expense
Amortization of leased assets48.1 41.2 29.6 
Interest on lease liabilities54.2 44.3 32.3 
Variable lease expense34.6 22.6 17.0 
Total lease expense$541.5 $486.0 $450.9 
Supplemental cash flow information related to leases for the fiscal years ended May 26, 2024, May 28, 2023 and May 29, 2022:
(in millions)May 26, 2024May 28, 2023May 29, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases (1)$397.2 $367.6 $374.6 
Operating cash flows from finance leases54.2 44.3 32.3 
Financing cash flows from finance leases (1) 22.0 19.8 12.9 
Right-of-use assets obtained in exchange for new operating lease liabilities (2)341.2 131.5 26.0 
Right-of-use assets obtained in exchange for new finance lease liabilities97.3 75.1 187.8 
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance49.8 86.3171.9
(1) Excludes cash received for any lease incentives.
(2) Right-of-use assets obtained in fiscal 2024 includes $303.4 million from the acquisition of Ruth’s Chris
Components of Lease Assets and Liabilities
The components of lease assets and liabilities on the consolidated balance sheet as of May 26, 2024 and May 28, 2023 are as follows:
(in millions)Balance Sheet ClassificationMay 26, 2024May 28, 2023
Operating lease right-of-use assetsOperating lease right-of-use assets$3,429.3 $3,373.9 
Finance lease right-of-use assetsLand, buildings and equipment, net1,106.3 958.1 
Total lease assets, net$4,535.6 $4,332.0 
Operating lease liabilities - currentOther current liabilities$198.8 $182.5 
Finance lease liabilities - currentOther current liabilities15.3 13.5 
Operating lease liabilities - non-currentOperating lease liabilities - non-current3,704.7 3,667.6 
Finance lease liabilities - non-currentOther liabilities1,357.1 1,172.6 
Total lease liabilities$5,275.9 $5,036.2 
The weighted-average remaining lease terms and discount rates as of May 26, 2024 and May 28, 2023 are as follows:
(in millions)May 26, 2024May 28, 2023
Weighted-Average Remaining Lease Term (Years)
   Operating leases14.815.2
   Finance leases22.222.5
Weighted-Average Discount Rate (1)
   Operating leases4.5 %4.3 %
   Finance leases4.4 %4.2 %
(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.
Maturities of Operating Lease Liabilities
The annual maturities of our lease liabilities as of May 26, 2024 are as follows:
(in millions)
Fiscal YearOperating LeasesFinance Leases
2025410.1 86.2
2026413.2 89.6
2027417.2 91.2
2028408.9 92.8
2029391.8 94.5
Thereafter3,527.5 1,807.7 
Total future lease commitments (1)$5,568.7 $2,262.0 
Less imputed interest(1,665.2)(889.6)
Present value of lease liabilities (2)$3,903.5 $1,372.4 
(1)Of the $5,568.7 million of total future operating lease commitments and $2,262.0 million of total future finance lease commitments, $2,306.4 million and $723.3 million, respectively, are non-cancelable.
(2)Excludes approximately $171.0 million of net present value of lease payments related to 44 real estate leases signed, but not yet commenced.
Maturities of Financing Lease Liabilities
The annual maturities of our lease liabilities as of May 26, 2024 are as follows:
(in millions)
Fiscal YearOperating LeasesFinance Leases
2025410.1 86.2
2026413.2 89.6
2027417.2 91.2
2028408.9 92.8
2029391.8 94.5
Thereafter3,527.5 1,807.7 
Total future lease commitments (1)$5,568.7 $2,262.0 
Less imputed interest(1,665.2)(889.6)
Present value of lease liabilities (2)$3,903.5 $1,372.4 
(1)Of the $5,568.7 million of total future operating lease commitments and $2,262.0 million of total future finance lease commitments, $2,306.4 million and $723.3 million, respectively, are non-cancelable.
(2)Excludes approximately $171.0 million of net present value of lease payments related to 44 real estate leases signed, but not yet commenced.