v3.26.1
LEASES
 12 Months Ended
May 31, 2026
Leases [Abstract]  
LEASES
NOTE 17 — LEASES
Lease expense is recognized in Cost of sales or Operating overhead expense within the Consolidated Statements of Income, based on the underlying nature of the leased asset. For the fiscal years ended May 31, 2026, 2025 and 2024, lease expense primarily consisted of operating lease costs of $693 million, $663 million and $618 million, respectively, as well as $453 million, $432 million and $433 million, respectively, primarily related to variable lease costs. As of and for the fiscal years ended May 31, 2026, 2025 and 2024, finance leases were not a material component of the Company's lease portfolio.
The undiscounted cash flows for future maturities of the Company's operating lease liabilities and the reconciliation to the Operating lease liabilities recognized in the Company's Consolidated Balance Sheets are as follows:
(Dollars in millions)
AS OF MAY 31, 2026(1)
Fiscal 2027$564 
Fiscal 2028553 
Fiscal 2029512 
Fiscal 2030456 
Fiscal 2031361 
Thereafter1,146 
Total undiscounted future cash flows related to lease payments$3,592 
Less interest 501 
PRESENT VALUE OF LEASE LIABILITIES$3,091 
(1)Excludes $77 million as of May 31, 2026 of future operating lease payments for lease agreements signed but not yet commenced.
The following table includes supplemental information used to calculate the present value of Operating lease liabilities:
AS OF MAY 31,
20262025
Weighted-average remaining lease term (in years)7.76.6
Weighted-average discount rate3.6 %3.1 %
The following table includes supplemental cash and non-cash information related to operating leases:
YEAR ENDED MAY 31,
(Dollars in millions)
202620252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$668 $647 $613 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities$849 $607 $458