Leases

6 Months Ended

Sep. 28, 2019

The following table summarizes ROU assets and lease liabilities recorded on the Company's consolidated balance sheet as of September 28, 2019:



	September 28, 2019		Location Recorded on Balance Sheet
	(millions)
Assets:
Operating leases	$	1,567.1	Operating lease right-of-use assets
Finance leases	176.5		Property and equipment, net
Total lease assets	$	1,743.6
Liabilities:
Operating leases:
Current portion	$	273.2	Current operating lease liabilities
Non-current portion	1,651.3		Long-term operating lease liabilities
Total operating lease liabilities	1,924.5
Finance leases:
Current portion	10.7		Accrued expenses and other current liabilities
Non-current portion	196.1		Other non-current liabilities
Total finance lease liabilities	206.8
Total lease liabilities	$	2,131.3

The following table summarizes the composition of net lease cost during the three-month and six-month periods ended September 28, 2019:



	September 28, 2019
	Three Months Ended			Six Months Ended			Location Recorded in Earnings
	(millions)
Operating lease cost	$	81.5		$	160.1		^(a)
Finance lease costs:
Depreciation of leased assets	4.7			8.9			SG&A expenses
Accretion of lease liabilities	2.1			4.0			Interest expense
Variable lease cost	75.7			153.7			^(b)
Short-term lease cost	1.8			3.5			SG&A expenses
Sublease income	(0.8		)	(1.7		)	Restructuring and other charges
Total lease cost	$	165.0		$	328.5

^(a)

During the three months ended September 28, 2019, $1.5 million included within cost of goods sold, $76.4 million included within SG&A expenses, and $3.6 million included within restructuring and other charges. During the six months ended September 28, 2019, $2.3 million included within cost of goods sold, $152.4 million included within SG&A expenses, and $5.4 million included within restructuring and other charges.

^(b)

During the three months ended September 28, 2019, $0.5 million included within cost of goods sold, $74.2 million included within SG&A expenses, and $1.0 million included within restructuring and other charges. During the six months ended September 28, 2019, $2.1 million included within cost of goods sold, $150.1 million included within SG&A expenses, and $1.5 million included within restructuring and other charges.

In accordance with lease accounting guidance in effect prior to its adoption of ASU 2016-02, during the three-month and six-month periods ended September 29, 2018, the Company recognized rent expense of approximately $110 million and $222 million, respectively, net of insignificant sublease income, related to its operating leases, which included contingent rental charges of approximately $45 million and $93 million, respectively. 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 six months ended ended September 28, 2019:



	September 28, 2019
	Six Months Ended
	(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	194.1
Operating cash flows from finance leases	4.0
Financing cash flows from finance leases	7.7

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 September 28, 2019:



	September 28, 2019
	Operating Leases			Finance Leases
	(millions)
Remainder of Fiscal 2020	$	140.4		$	9.0
Fiscal 2021	335.0			18.6
Fiscal 2022	309.8			23.3
Fiscal 2023	277.4			22.5
Fiscal 2024	250.7			22.4
Fiscal 2025 and thereafter	797.1			175.6
Total lease payments	2,110.4			271.4
Less: interest	(185.9		)	(64.6		)
Total lease liabilities	$	1,924.5		$	206.8

Additionally, the Company had approximately $74 million of future payment obligations related to executed lease agreements for which the related leases had not yet commenced as of September 28, 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 September 28, 2019:

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

September 28, 2019

Operating
Leases

Finance
Leases

Weighted-average remaining lease term (years)

Weighted-average discount rate