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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended
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May 25, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We designate commodity contracts, equity forward contracts and foreign exchange forward contracts as cash flow hedging instruments. Our interest rate swap agreements are designated as fair value hedges of the related debt. During the first quarter of fiscal 2025, we entered into a contract designated as a cash flow hedge of the benchmark interest rate on the debt expected to be issued during the second quarter of fiscal 2025. Upon issuance of the debt, we settled this contract which resulted in a $1.9 million loss recorded as a component of interest expense due to the immateriality of the loss. Further, we entered into equity forward contracts to hedge the risk of changes in future cash flows associated with recognized, employee-directed investments in our common stock within the non-qualified deferred compensation plan. We did not elect hedge accounting with the expectation that changes in the fair value of the equity forward contracts would offset changes in the fair value of our common stock investments in the non-qualified deferred compensation plan. Refer to Note 1 for further details on the derivative instruments and hedging activities accounting policy. The notional and fair values of our derivative contracts are as follows:
|  |  |  |  |  |  | Fair Values
(in millions, except per share data) | Number of Shares Outstanding |  | Weighted-Average Per Share Forward Rates |  | Notional Values |  | Derivative Assets (1) |  | Derivative Liabilities (1)
| May 25, 2025 |  | May 25, 2025 |  | May 26, 2024 |  | May 25, 2025 |  | May 26, 2024
Equity Forwards |  |  |  |  |  |  |  |  |  |  |  |  |
Designated | 0.2 |  |  | $ | 145.57 |  |  | $ | 23.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.8 |  |  | $ | 0.8 |
Not designated | 0.4 |  |  | $ | 139.89 |  |  | $ | 61.7 |  |  | — |  |  | — |  |  | 2.2 |  |  | 2.4 |
Total equity forwards (2) |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 3.0 |  |  | $ | 3.2 |
Commodity contracts |  |  |  |  |  |  |  |  |  |  |  |  |
Designated | N/A |  | N/A |  | $ | 13.8 |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.9 |  |  | $ | 0.7 |
Not designated | N/A |  | N/A |  | $ | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commodity contracts (3) |  |  |  |  |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.9 |  |  | $ | 0.7 |
Interest rate related |  |  |  |  |  |  |  |  |  |  |  |  |
Designated | N/A |  | N/A |  | $ | 300.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 40.0 |  |  | $ | 51.8 |
Not designated | N/A |  | N/A |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total interest rate related |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 40.0 |  |  | $ | 51.8 |
Foreign Exchange Forwards |  |  |  |  |  |  |  |  |  |  |  |  |
Designated | N/A |  | N/A |  | $ | 18.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.2 |  |  | $ | — |
Not designated | N/A |  | N/A |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total foreign exchange forwards (4) |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 0.2 |  |  | $ | — |
Total derivative contracts |  |  |  |  |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 44.1 |  |  | $ | 55.7 |
(1)Derivative assets and liabilities are included in receivables, net, and other current liabilities, as applicable, on our consolidated balance sheets. (2)Designated and undesignated equity forwards extend through July 2028. (3)Commodity contracts extend through June 2026. (4)Foreign exchange forwards extend through July 2025. The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows:
|  | Amount of Gain (Loss) Recognized in AOCI |  | Amount of Gain (Loss) Reclassified from AOCI to Earnings |  |
|  | Fiscal Year Ended |  | Fiscal Year Ended |  |
(in millions) |  | May 25, 2025 |  | May 26, 2024 |  | May 28, 2023 |  | May 25, 2025 |  | May 26, 2024 |  | May 28, 2023 |  |  |  |  |  |
Equity (1) |  | $ | 9.0 |  |  | $ | (6.4) |  |  | $ | 8.0 |  |  | $ | 0.1 |  |  | $ | 1.3 |  |  | $ | (0.8) |  |  |  |  |  |  |
Commodity (2) |  | (1.9) |  |  | (1.9) |  |  | (9.2) |  |  | (1.6) |  |  | (6.9) |  |  | (3.1) |  |  |  |  |  |  |
Interest rate (3) |  | — |  |  | 34.9 |  |  | — |  |  | 3.4 |  |  | 2.2 |  |  | (0.1) |  |  |  |  |  |  |
Foreign exchange |  | (0.2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |
Total |  | $ | 6.9 |  |  | $ | 26.6 |  |  | $ | (1.2) |  |  | $ | 1.9 |  |  | $ | (3.4) |  |  | $ | (4.0) |  |  |  |  |  |  |
(1)Location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses. (2)Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses. (3)Location of the gain (loss) reclassified from AOCI to earnings is interest, net. The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows:
|  | Amount of Gain (Loss) Recognized in Earnings on Derivatives |  | Amount of Gain (Loss) Recognized in Earnings on Related Hedged Item |  |
|  | Fiscal Year Ended |  | Fiscal Year Ended |  |
(in millions) |  | May 25, 2025 |  | May 26, 2024 |  | May 28, 2023 |  | May 25, 2025 |  | May 26, 2024 |  | May 28, 2023 |  |  |  |  |  |
Interest rate (1)(2) |  | $ | 11.8 |  |  | $ | (6.4) |  |  | $ | (17.4) |  |  | $ | (11.8) |  |  | $ | 6.4 |  |  | $ | 17.4 |  |  |  |  |  |  |
(1) Location of the gain (loss) recognized in earnings on derivatives and related hedged item is interest, net. (2) Hedged item in fair value hedge relationship is debt. The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows:
|  | Amount of Gain (Loss) Recognized in Earnings
(in millions) |  | Fiscal Year Ended
Location of Gain (Loss) Recognized in Earnings on Derivatives |  | May 25, 2025 |  | May 26, 2024 |  | May 28, 2023
General and administrative expenses |  | 25.6 |  |  | (3.1) |  |  | 18.3 |
Based on the fair value of our derivative instruments designated as cash flow hedges as of May 25, 2025, we expect to reclassify $3.1 million of net gains on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months based on the maturity of equity forward, commodity, and interest rate contracts. However, the amounts ultimately realized in earnings will be dependent on the fair value of the contracts on the settlement dates.

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