XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.21.2

LONG-TERM DEBT | 12 Months Ended
--- | ---
May 30, 2021
Debt Disclosure [Abstract] |
LONG-TERM DEBT | 4. LONG-TERM DEBT
|  | May 30, 2021 |  |  | May 31, 2020 |
5.4% senior debt due November 2048 |  | $ | 1,000.0 |  |  | $ | 1,000.0 |
4.65% senior debt due January 2043 |  |  | 176.7 |  |  |  | 176.7 |
6.625% senior debt due August 2039 |  |  | 91.4 |  |  |  | 91.4 |
5.3% senior debt due November 2038 |  |  | 1,000.0 |  |  |  | 1,000.0 |
8.25% senior debt due September 2030 |  |  | 300.0 |  |  |  | 300.0 |
4.85% senior debt due November 2028 |  |  | 1,300.0 |  |  |  | 1,300.0 |
7.0% senior debt due October 2028 |  |  | 382.2 |  |  |  | 382.2 |
1.375% senior debt due November 2027 |  |  | 1,000.0 |  |  |  | — |
6.7% senior debt due August 2027 |  |  | 9.2 |  |  |  | 9.2 |
7.125% senior debt due October 2026 |  |  | 262.5 |  |  |  | 262.5 |
4.6% senior debt due November 2025 |  |  | 1,000.0 |  |  |  | 1,000.0 |
4.3% senior debt due May 2024 |  |  | 1,000.0 |  |  |  | 1,000.0 |
3.2% senior debt due January 2023 |  |  | 437.0 |  |  |  | 837.0 |
3.25% senior debt due September 2022 |  |  | 250.0 |  |  |  | 250.0 |
3.8% senior debt due October 2021 |  |  | — |  |  |  | 1,200.0 |
9.75% subordinated debt due March 2021 |  |  | — |  |  |  | 195.9 |
LIBOR plus 0.50% senior debt due October 2020 |  |  | — |  |  |  | 500.0 |
4.95% senior debt due August 2020 |  |  | — |  |  |  | 126.6 |
0.45% to 9.59% lease financing obligations due on various dates through 2035 |  |  | 139.1 |  |  |  | 155.1 |
Other indebtedness |  |  | 0.1 |  |  |  | 0.1 |
Total face value of debt |  |  | 8,348.2 |  |  |  | 9,786.7 |
Unamortized fair value adjustment |  |  | 19.9 |  |  |  | 21.2 |
Unamortized discounts |  |  | (25.8 | ) |  |  | (17.2 | )
Unamortized debt issuance costs |  |  | (44.0 | ) |  |  | (44.6 | )
Adjustment due to hedging activity |  |  | — |  |  |  | 0.2 |
Less current installments |  |  | (23.1 | ) |  |  | (845.5 | )
Total long-term debt |  | $ | 8,275.2 |  |  | $ | 8,900.8 |
The aggregate minimum principal maturities of the long-term debt for each of the five fiscal years following May 30, 2021, are as follows:
2022 |  | $ | 23.1 |
2023 |  |  | 706.8 |
2024 |  |  | 1,015.8 |
2025 |  |  | 14.3 |
2026 |  |  | 1,020.8 |
Pinnacle Acquisition Financing In the first quarter of fiscal 2019, in connection with the announcement of the acquisition of Pinnacle, we secured $9.0 billion in fully committed bridge financing. Prior to the acquisition, we capitalized financing costs related to the bridge financing of $45.7 million to be amortized over the commitment period. Our net interest expense included $11.9 million for fiscal 2019 as a result of this amortization. The bridge facility was terminated in connection with the acquisition, and we recognized $33.8 million of expense within SG&A expenses in fiscal 2019 for the remaining unamortized financing costs. During the second quarter of fiscal 2019, to finance a portion of our acquisition of Pinnacle, we issued senior unsecured notes in an aggregate principal amount of $7.025 billion. During the second quarter of fiscal 2019, to finance a portion of our acquisition of Pinnacle, we also entered into a term loan agreement (the "Term Loan Agreement") with a syndicate of financial institutions providing for term loans to the Company in an aggregate principal amount of up to $1.30 billion. Our borrowings under the Term Loan Agreement consisted of a $650.0 million tranche of three-year term loans maturing on October 26, 2021 and a $650.0 million tranche of five-year term loans maturing on October 26, 2023. During fiscal 2019, we repaid $900.0 million under the Term Loan Agreement and we repaid the remaining $400.0 million outstanding under the Term Loan Agreement during fiscal 2020. The Term Loan Agreement was terminated following these repayments. In connection with our acquisition of Pinnacle, we prepaid in full $2.40 billion of obligations and liabilities of Pinnacle under or in respect of Pinnacle's credit agreement and other debt agreements. We also redeemed $350.0 million in aggregate principal amount of Pinnacle's outstanding 5.875% senior notes due January 15, 2024 and recognized a charge of $3.9 million in fiscal 2019 as a cost of early retirement of debt. In the first quarter of fiscal 2019, we entered into deal-contingent forward starting interest rate swap contracts (see Note 17) to hedge a portion of the interest rate risk related to our anticipated issuance of long-term debt to help finance the Pinnacle acquisition. During the second quarter of fiscal 2019, we terminated the interest rate swap contracts and received proceeds of $47.5 million. This gain was deferred in accumulated other comprehensive income and is being amortized as a reduction of interest expense over the lives of the related debt instruments. Our net interest expense was reduced by $3.3 million, $3.5 million and $2.0 million in fiscal 2021, fiscal 2020, and fiscal 2019, respectively, due to the impact of these interest rate swap contracts. General During the fourth quarter of fiscal 2021, we repaid the remaining outstanding $195.9 million aggregate principal amount of our 9.75% subordinated notes on the maturity date of March 1, 2021. During the third quarter of fiscal 2021, we redeemed $400.0 million aggregate principal amount of our 3.20% senior notes due January 25, 2023, prior to maturity, resulting in a loss of $24.4 million within SG&A expenses as a cost of early extinguishment of debt. During the second quarter of fiscal 2021, we issued $1.0 billion aggregate principal amount of 1.375% senior notes due November 1, 2027 (the "2027 Senior Notes"). We also redeemed the entire outstanding $1.20 billion aggregate principal amount of our 3.80% senior notes prior to their maturity date of October 22, 2021, resulting in a net loss of $44.3 million within SG&A expenses as a cost of early extinguishment of debt. This redemption was primarily funded using the net proceeds from the issuance of the 2027 Senior Notes. During the second quarter of fiscal 2021, we also repaid the entire outstanding $500.0 million aggregate principal amount of our floating rate notes on the maturity date of October 9, 2020. During the first quarter of fiscal 2021, we repaid the remaining outstanding $126.6 million aggregate principal amount of our 4.95% senior notes on their maturity date of August 15, 2020. In fiscal 2020, we redeemed the entire outstanding $525.0 million aggregate principal amount of our floating rate notes due October 22, 2020 in two separate redemptions totaling $250.0 million and $275.0 million in the third and fourth quarters of fiscal 2020, respectively. In the fourth quarter of fiscal 2020, we entered into an unsecured term loan agreement (the "Credit Agreement") with a financial institution. The Credit Agreement provided for delayed draw term loans to the Company in an aggregate principal amount not to exceed $600.0 million (subject to increase to a maximum aggregate principal amount of $750.0 million) through October 9, 2020. We did not borrow under the Credit Agreement, and it was terminated in the second quarter of fiscal 2021. Net interest expense consists of:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Long-term debt |  | $ | 430.0 |  |  | $ | 495.9 |  |  | $ | 385.9 |
Short-term debt |  |  | 2.5 |  |  |  | 0.9 |  |  |  | 15.0 |
Interest income |  |  | (1.9 | ) |  |  | (3.1 | ) |  |  | (6.8 | )
Interest capitalized |  |  | (10.2 | ) |  |  | (6.6 | ) |  |  | (2.7 | )
|  | $ | 420.4 |  |  | $ | 487.1 |  |  | $ | 391.4 |
Interest paid from continuing operations was $445.6 million, $494.6 million, and $375.6 million in fiscal 2021, 2020, and 2019, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration