Leases

12 Months Ended

May 28, 2022

The Company has leases for retail studios, showrooms, manufacturing facilities, warehouses and vehicles, which expire at various dates through 2042. Certain lease agreements include contingent rental payments based on per unit usage over a contractual amount and others include rental payments adjusted periodically for inflationary indexes.

The Company's lease costs recognized in the Consolidated Statement of Income consist of the following:


	Year Ended		Year Ended
(In millions)	May 28, 2022		May 29, 2021
Operating lease costs	$	89.4	$	50.3
Short-term lease costs	10.4		3.2
Variable lease costs	10.3		8.3
Total	$	110.1	$	61.8

Included in the Company's Right-of-use assets and Lease liabilities are variable lease costs, not included in the table above, for raw material purchases under certain supply arrangements that the Company has determined to meet the definition of a lease:


	Year Ended		Year Ended
	May 28, 2022		May 29, 2021
Variable lease costs	$	95.6	$	84.5

During the fourth quarter of fiscal 2020, the Company determined it was more likely than not that the fair value of certain right of use assets were below their carrying values and assessed these assets for impairment. As result of this assessment the Company recorded an impairment of $19.3 million in the Consolidated Statements of Comprehensive income.

At May 28, 2022, the Company has no financing leases. The undiscounted annual future minimum lease payments related to the Company's right-of-use assets are summarized by fiscal year in the following table:


(In millions)
2023	$	95.8
2024	88.0
2025	78.7
2026	61.8
2027	50.6
Thereafter	160.4
Total lease payments*	$	535.3
Less interest	57.2
Present value of lease liabilities	$	478.1

*Lease payments exclude $9.8 million of legally binding minimum lease payments for leases signed but not yet commenced.

Supplemental cash flow and other lease information as of and for periods indicated, includes (dollars in millions):


	Year Ended			Year Ended
	May 28, 2022			May 29, 2021
Weighted-average remaining lease term (in years)
Operating leases	7.1			7
Weighted-average discount rate
Operating leases	1.9		%	2.8		%

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow from operating leases	$	85.7		$	45.3
ROU assets obtained in exchange for new operating lease liabilities
Operating leases	$	89.1		$	58.1