Leases

3 Months Ended

Jun. 29, 2019

The following table summarizes ROU assets and lease liabilities recorded on the Company's consolidated balance sheet as of June 29, 2019:



	June 29, 2019		Location Recorded on Balance Sheet
	(millions)
Assets:
Operating leases	$	1,415.8	Operating lease right-of-use assets
Finance leases	181.2		Property and equipment, net
Total lease assets	$	1,597.0
Liabilities:
Operating leases:
Current portion	$	293.8	Current portion of operating lease liabilities
Non-current portion	1,483.9		Long-term operating lease liabilities
Total operating lease liabilities	1,777.7
Finance leases:
Current portion	11.0		Accrued expenses and other current liabilities
Non-current portion	199.4		Other non-current liabilities
Total finance lease liabilities	210.4
Total lease liabilities	$	1,988.1

The following table summarizes the composition of net lease cost for the three months ended June 29, 2019:



	Three Months Ended
	June 29, 2019			Location Recorded in Earnings
	(millions)
Operating lease cost	$	78.6		^(a)
Finance lease costs:
Depreciation of leased assets	4.2			SG&A expenses
Accretion of lease liabilities	1.9			Interest expense
Variable lease cost	78.0			^(b)
Short-term lease cost	1.7			SG&A expenses
Sublease income	(0.9		)	Restructuring and other charges
Total lease cost	$	163.5


^(a)	$0.8 million included within cost of goods sold, $76.0 million included within SG&A expenses, and $1.8 million included within restructuring and other charges.


^(b)	$1.6 million included within cost of goods sold, $75.9 million included within SG&A expenses, and $0.5 million included within restructuring and other charges.

In accordance with lease accounting guidance in effect prior to its adoption of ASU 2016-02, the Company recognized rent expense of approximately $112 million, net of insignificant sublease income, related to its operating leases during the three months ended June 30, 2018, which included contingent rental charges of approximately $48 million. Such amounts do not include expense recognized related to non-lease components.

The following table summarizes certain cash flow information related to the Company's leases for the three months ended June 29, 2019:



	Three Months Ended
	June 29, 2019
	(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	96.8
Operating cash flows from finance leases	1.8
Financing cash flows from finance leases	4.9

See Note 19 for supplemental non-cash information related to ROU assets obtained in exchange for new lease liabilities.

The following table provides a maturity analysis summary of the Company's lease liabilities recorded on the consolidated balance sheet as of June 29, 2019:



	June 29, 2019
	Operating Leases			Finance Leases
	(millions)
Remainder of Fiscal 2020	$	242.1		$	14.1
Fiscal 2021	329.3			18.7
Fiscal 2022	287.7			23.3
Fiscal 2023	252.1			22.5
Fiscal 2024	225.8			22.5
Fiscal 2025 and thereafter	596.4			176.1
Total lease payments	1,933.4			277.2
Less: interest	(155.7		)	(66.8		)
Total lease liabilities	$	1,777.7		$	210.4

Additionally, the Company had approximately $92 million of future payment obligations related to executed lease agreements for which the related lease has not yet commenced as of June 29, 2019.

The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates related to the Company's operating and finance leases recorded on the consolidated balance sheet as of June 29, 2019:

See Note 3 for discussion of the Company's accounting policies related to its leasing activities.

June 29, 2019

Operating
Leases

Finance
Leases

Weighted-average remaining lease term (years)

Weighted-average discount rate