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Leases | 12 Months Ended
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Dec. 01, 2024
Leases [Abstract] |
LEASES | LEASES Lease expense is primarily recognized in SG&A expenses within the Company's consolidated statements of income, based on the underlying nature of the leased asset. For the years ended December 1, 2024 and November 26, 2023, lease expense primarily consisted of operating lease costs of $412.6 million and $378.0 million, respectively, including $102.5 million and $96.3 million primarily related to variable lease costs and $7.5 million and $7.6 million of short-term lease costs. As of and for the year ended December 1, 2024, finance leases were not a material component of the Company's lease portfolio. On June 6, 2024, the Company entered into an agreement with a third-party logistics provider to replace the Company’s Canton, Mississippi distribution center with a new distribution center. The Company will maintain certain rights over the warehouse, and warehouse equipment and technologies resulting in an Operating lease right-of-use (“ROU”) asset and lease liability of $30.6 million and a Financing lease right-of-use asset and lease liability of $14.0 million. In the fourth quarter of fiscal year 2023, the Company leased a distribution facility in Germany and recognized a ROU asset of $80.8 million and corresponding lease liability of $91.6 million. During 2023, the Company capitalized approximately $57.4 million for Company-owned equipment to be installed in the leased facility. During 2024, the Company entered into an agreement with a third-party logistics provider to manage all aspects of the distribution center. The Company has received payments of approximately $87.1 million from the provider for use of the Company’s warehouse equipment and technologies over the term of the agreement. The Company will maintain certain rights over the warehouse equipment and technologies and will retain the related equipment on the consolidated balance sheets. The upfront payment will be amortized as a reduction in the related distribution expenses over the expected term of the arrangement, which commenced in the second half of 2024. The upfront payment is recognized on the consolidated balance sheets in “Other accrued liabilities” and “Long-term employee related benefits and other liabilities” and the proceeds are recorded as an operating activity in “Net change in operating assets and liabilities” on the consolidated statements of cash flows. The Company reviews its ROU assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. During the year ended November 27, 2022, as a result of the Russia-Ukraine war, the Company reviewed the ROU assets assigned to its Russia business for impairment and recorded $33.3 million of non-cash impairment charges. The impairment charges are included in SG&A expenses in the Company's consolidated statements of income. Amounts of future undiscounted cash flows related to operating lease payments over the lease term are as follows and are reconciled to the present value of the operating lease liabilities as recorded in the Company's consolidated balance sheets.
| December 1, 2024
| (Dollars in millions)
2025 | $ | 292.7 |
2026 | 244.2 |
2027 | 197.9 |
2028 | 159.3 |
2029 | 116.8 |
Thereafter | 405.2 |
Total undiscounted future cash flows related to lease payments | 1,416.1 |
Less: Interest | 202.3 |
Present value of lease liabilities | $ | 1,213.8 |
The following table includes the weighted average remaining lease terms, in years, and the weighted average discount rate used to calculate the present value of operating lease liabilities:
| December 1, 2024 |  | November 26, 2023
Weighted-average remaining lease term (years) | 6.9 |  | 7.2
Weighted-average discount rate | 4.21 | % |  | 3.81 | %
The table below includes supplemental cash and non-cash information related to operating leases:
| December 1, 2024 |  | November 26, 2023
| (Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows from operating leases | $ | 292.4 |  |  | $ | 272.9 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ | 305.4 |  |  | $ | 334.4 |
Finance lease right-of-use assets acquired in exchange for finance lease obligation | 14.0 |  |  | $ | — |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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