Annual report pursuant to Section 13 and 15(d)

LEASES

v3.21.1
LEASES
 12 Months Ended
Apr. 03, 2021
Leases [Abstract]  
LEASES LEASES
The assets and liabilities related to operating and finance leases were as follows:
(In thousands) Location in Consolidated Balance Sheet March 2021 March 2020
Assets:
Operating lease assets Operating lease right-of-use assets $ 1,474,434  $ 1,273,514 
Finance lease assets Property, plant and equipment, net 14,250  18,260 
Total lease assets $ 1,488,684  $ 1,291,774 
Liabilities:
Current
Operating lease liabilities Accrued liabilities $ 403,995  $ 352,578 
Finance lease liabilities Current portion of long-term debt 1,023  1,018 
Noncurrent
Operating lease liabilities Operating lease liabilities 1,236,461  1,020,651 
Finance lease liabilities Long-term debt 18,288  22,755 
Total lease liabilities $ 1,659,767  $ 1,397,002 
The components of lease costs were as follows:
Year Ended March
(In thousands) 2021 2020
Operating lease cost $ 454,324  $ 420,175 
Finance lease cost – amortization of right-of-use assets 749  3,700 
Finance lease cost – interest on lease liabilities 462  1,018 
Short-term lease cost 8,586  3,696 
Variable lease cost 54,460  109,935 
Impairment 9,177  10,728 
Gain recognized from sale-leaseback transactions —  (11,329)
Total lease cost $ 527,758  $ 537,923 
Supplemental cash flow information related to leases was as follows:

 Year Ended March
(In thousands) 2021 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases $ 425,975  $ 391,344 
Operating cash flows – finance leases 552  1,018 
Financing cash flows – finance leases 1,112  4,890 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases (a)
636,613  478,879 
Finance leases —  — 
(a)The year ended March 2020 excludes amounts recorded upon adoption of ASC 842.
Lease terms and discount rates were as follows:
March 2021 March 2020
Weighted average remaining lease term:
Operating leases 6.77 years 5.23 years
Finance leases 15.50 years 16.51 years
Weighted average discount rate:
Operating leases 1.80  % 2.23  %
Finance leases 2.71  % 2.71  %
Maturities of operating and finance lease liabilities for the next five fiscal years and thereafter as of March 2021 were as follows:
(In thousands) Operating Leases Finance Leases Total
2022 $ 434,867  $ 1,536  $ 436,403 
2023 346,633  1,536  348,169 
2024 244,885  1,536  246,421 
2025 175,169  1,536  176,705 
2026 119,169  1,536  120,705 
Thereafter 425,820  16,005  441,825 
Total lease payments 1,746,543  23,685  1,770,228 
Less: present value adjustment 106,087  4,374  110,461 
Present value of lease liabilities $ 1,640,456  $ 19,311  $ 1,659,767 
The Company excluded approximately $23.1 million of leases (undiscounted basis) that have not yet commenced, relating primarily to distribution centers. These leases will commence beginning in Fiscal 2022 with lease terms of 2 to 10 years.
Rent expense recorded under ASC Topic 840, Leases, was included in the Consolidated Statement of Operations as follows:
Year Ended March
(In thousands) 2019
Minimum rent expense $ 349,173 
Contingent rent expense 34,209 
Rent expense $ 383,382 
LEASES LEASES
The assets and liabilities related to operating and finance leases were as follows:
(In thousands) Location in Consolidated Balance Sheet March 2021 March 2020
Assets:
Operating lease assets Operating lease right-of-use assets $ 1,474,434  $ 1,273,514 
Finance lease assets Property, plant and equipment, net 14,250  18,260 
Total lease assets $ 1,488,684  $ 1,291,774 
Liabilities:
Current
Operating lease liabilities Accrued liabilities $ 403,995  $ 352,578 
Finance lease liabilities Current portion of long-term debt 1,023  1,018 
Noncurrent
Operating lease liabilities Operating lease liabilities 1,236,461  1,020,651 
Finance lease liabilities Long-term debt 18,288  22,755 
Total lease liabilities $ 1,659,767  $ 1,397,002 
The components of lease costs were as follows:
Year Ended March
(In thousands) 2021 2020
Operating lease cost $ 454,324  $ 420,175 
Finance lease cost – amortization of right-of-use assets 749  3,700 
Finance lease cost – interest on lease liabilities 462  1,018 
Short-term lease cost 8,586  3,696 
Variable lease cost 54,460  109,935 
Impairment 9,177  10,728 
Gain recognized from sale-leaseback transactions —  (11,329)
Total lease cost $ 527,758  $ 537,923 
Supplemental cash flow information related to leases was as follows:

 Year Ended March
(In thousands) 2021 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases $ 425,975  $ 391,344 
Operating cash flows – finance leases 552  1,018 
Financing cash flows – finance leases 1,112  4,890 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases (a)
636,613  478,879 
Finance leases —  — 
(a)The year ended March 2020 excludes amounts recorded upon adoption of ASC 842.
Lease terms and discount rates were as follows:
March 2021 March 2020
Weighted average remaining lease term:
Operating leases 6.77 years 5.23 years
Finance leases 15.50 years 16.51 years
Weighted average discount rate:
Operating leases 1.80  % 2.23  %
Finance leases 2.71  % 2.71  %
Maturities of operating and finance lease liabilities for the next five fiscal years and thereafter as of March 2021 were as follows:
(In thousands) Operating Leases Finance Leases Total
2022 $ 434,867  $ 1,536  $ 436,403 
2023 346,633  1,536  348,169 
2024 244,885  1,536  246,421 
2025 175,169  1,536  176,705 
2026 119,169  1,536  120,705 
Thereafter 425,820  16,005  441,825 
Total lease payments 1,746,543  23,685  1,770,228 
Less: present value adjustment 106,087  4,374  110,461 
Present value of lease liabilities $ 1,640,456  $ 19,311  $ 1,659,767 
The Company excluded approximately $23.1 million of leases (undiscounted basis) that have not yet commenced, relating primarily to distribution centers. These leases will commence beginning in Fiscal 2022 with lease terms of 2 to 10 years.
Rent expense recorded under ASC Topic 840, Leases, was included in the Consolidated Statement of Operations as follows:
Year Ended March
(In thousands) 2019
Minimum rent expense $ 349,173 
Contingent rent expense 34,209 
Rent expense $ 383,382