v3.24.2
INCOME TAXES (Tables)
 12 Months Ended
May 26, 2024
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 26, 2024May 28, 2023May 29, 2022
Earnings from continuing operations$145.0 $137.0 $138.8 
Loss from discontinued operations(1.7)(0.8)(0.2)
Total consolidated income tax expense (benefit)$143.3 $136.2 $138.6 
Components of Earnings Before Income Tax And Provision For Income Taxes
The components of earnings from continuing operations before income taxes and the provision for income taxes thereon are as follows:
Fiscal Year Ended
(in millions)May 26, 2024May 28, 2023May 29, 2022
Earnings from continuing operations before income taxes:
U.S.$1,169.2 $1,117.3 $1,089.5 
Foreign6.3 3.2 4.0 
Earnings from continuing operations before income taxes$1,175.5 $1,120.5 $1,093.5 
Income taxes:
Current:
Federal$99.2 $165.9 $90.7 
State and local43.5 25.6 72.7 
Foreign3.0 1.6 1.4 
Total current$145.7 $193.1 $164.8 
Deferred (principally U.S.):
Federal$(0.7)$(69.2)$10.3 
State and local— 13.1 (36.3)
Total deferred$(0.7)$(56.1)$(26.0)
Total income tax expense$145.0 $137.0 $138.8 
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 26, 2024May 28, 2023May 29, 2022
U.S. statutory rate21.0 %21.0 %21.0 %
State and local income taxes, net of federal tax benefits3.3 3.1 2.5 
Benefit of federal income tax credits(10.5)(10.4)(9.8)
Stock-based compensation tax benefit(1.1)(0.9)(0.9)
Other, net(0.4)(0.6)(0.1)
Effective income tax rate12.3 %12.2 %12.7 %
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
(in millions)
Balances at May 28, 2023$23.0 
Additions related to current-year tax positions5.3 
Additions related to prior-year tax positions0.2 
Net reductions due to settlements with taxing authorities(2.7)
Reductions to tax positions due to statute expiration(3.1)
Balances at May 26, 2024$22.7 
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 26, 2024May 28, 2023May 29, 2022
Interest recorded on unrecognized tax benefits$1.7 $2.2 $1.3 
Interest recorded on income tax receivables$(6.9)$(6.8)$(3.1)
Total (Benefit) Expense$(5.2)$(4.6)$(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 26, 2024May 28, 2023
Accrued liabilities$136.4 $117.2 
Compensation and employee benefits127.8 122.8 
Lease liabilities1,332.4 1,248.5 
Net operating loss, credit and charitable contribution carryforwards71.8 77.5 
Other1.0 4.3 
Gross deferred tax assets$1,669.4 $1,570.3 
Valuation allowance(26.8)(21.1)
Deferred tax assets, net of valuation allowance$1,642.6 $1,549.2 
Trademarks and other acquisition related intangibles(274.6)(184.2)
Buildings and equipment(373.5)(337.7)
Capitalized software and other assets(30.4)(26.0)
Lease assets(1,183.8)(1,129.5)
Other(12.3)(14.0)
Gross deferred tax liabilities$(1,874.6)$(1,691.4)
Net deferred tax liabilities$(232.0)$(142.2)