LEASES

12 Months Ended

May 31, 2026

15. LEASES

We have operating and finance leases of certain warehouses, plants, land, office space, production and distribution equipment, automobiles, and office equipment. We determine whether an agreement is or contains a lease at lease inception. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

As most of our leases do not provide an implicit interest rate, we calculate the lease liability at lease commencement as the present value of unpaid lease payments using our estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined using a portfolio approach based on information available at the commencement date of the lease.

We have elected not to separate lease and non-lease components of an agreement for all underlying asset classes prospectively from the ASU 2016-02, Leases, Topic 842 adoption date.

Any lease arrangements with an initial term of twelve months or less are not recorded on our Consolidated Balance Sheet. We recognize lease cost for these lease arrangements on a straight-line basis over the lease term.

Our lease terms may include options to extend or terminate the lease. We consider these options in determining the lease term used to establish our ROU asset and lease liabilities. A limited number of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Leases reported in our Consolidated Balance Sheets were as follows, excluding balances related to assets and liabilities classified as held for sale:


		Operating Leases
		Balance Sheet Location		May 31, 2026			May 25, 2025
ROU assets, net		Other assets		$	170.7		$	209.7
Lease liabilities (current)		Other accrued liabilities			36.0			39.7
Lease liabilities (noncurrent)		Other noncurrent liabilities			170.7			203.3


	Finance Leases
	Balance Sheet Location	May 31, 2026		May 25, 2025
ROU assets, at cost	Property, plant and equipment	$	320.9	$	364.9
Less accumulated depreciation	Less accumulated depreciation		(94.0)		(98.3)
ROU assets, net	Property, plant and equipment, net		226.9		266.6
Lease liabilities (current)	Current installments of long-term debt		16.1		29.4
Lease liabilities (noncurrent)	Senior long-term debt, excluding current installments		224.3		237.8

The components of total lease cost were as follows:


		2026			2025			2024
Operating lease cost		$	48.1		$	47.6		$	53.1
Finance lease cost
Depreciation of leased assets			21.1			23.4			23.2
Interest on lease liabilities			13.3			13.7			12.0
Short-term lease cost			10.2			7.9			11.2
Total lease cost		$	92.7		$	92.6		$	99.5

The weighted-average remaining lease terms and weighted-average discount rate for our leases as of May 31, 2026 and May 25, 2025 were as follows:


		Operating Leases				Finance Leases
		2026		2025		2026		2025
Weighted-average remaining lease term (in years)		6.3		6.8		13.5		13.8
Weighted-average discount rate		4.35%		4.15%		5.33%		5.26%

Cash flows arising from lease transactions were as follows:


		2026			2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases		$	55.2		$	51.0		$	52.1
Operating cash outflows from finance leases			13.3			13.7			5.8
Financing cash outflows from finance leases			31.0			31.3			22.7
ROU assets obtained in exchange for new lease liabilities:
Operating leases			6.3			77.3			27.5
Finance leases			4.3			24.0			177.3

Maturities of lease liabilities by fiscal year as of May 31, 2026 were as follows (inclusive of amounts classified as held for sale):


		Operating Leases			Finance Leases			Total
2027		$	44.2		$	28.1		$	72.3
2028			44.2			28.3			72.5
2029			34.9			27.9			62.8
2030			28.6			28.8			57.4
2031			25.9			26.8			52.7
Later years			62.5			206.2			268.7
Total lease payments			240.3			346.1			586.4
Less: Imputed interest			(33.6)			(105.7)			(139.3)
Total lease liabilities		$	206.7		$	240.4		$	447.1