| LEASES |
LEASES The assets and liabilities related to operating and finance leases were as follows:
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|
|
|
|
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|
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|
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|
|
| (In thousands) |
Location in Consolidated Balance Sheet |
|
|
March 2021 |
|
|
March 2020 |
| Assets: |
|
|
|
|
|
|
|
| Operating lease assets |
Operating lease right-of-use assets |
|
|
$ |
1,474,434Ìý |
|
|
|
$ |
1,273,514Ìý |
|
| Finance lease assets |
Property, plant and equipment, net |
|
|
14,250Ìý |
|
|
|
18,260Ìý |
|
| Total lease assets |
|
|
|
$ |
1,488,684Ìý
|
|
|
|
$ |
1,291,774Ìý
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
| Current |
|
|
|
|
|
|
|
| Operating lease liabilities |
Accrued liabilities |
|
|
$ |
403,995Ìý |
|
|
|
$ |
352,578Ìý |
|
| Finance lease liabilities |
Current portion of long-term debt |
|
|
1,023Ìý |
|
|
|
1,018Ìý |
|
| Noncurrent |
|
|
|
|
|
|
|
| Operating lease liabilities |
Operating lease liabilities |
|
|
1,236,461Ìý |
|
|
|
1,020,651Ìý |
|
| Finance lease liabilities |
Long-term debt |
|
|
18,288Ìý |
|
|
|
22,755Ìý |
|
| Total lease liabilities |
|
|
|
$ |
1,659,767Ìý
|
|
|
|
$ |
1,397,002Ìý
|
|
The components of lease costs were as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March |
|
|
|
|
|
|
| (In thousands) |
|
2021 |
|
|
2020 |
| Operating lease cost |
|
$ |
454,324Ìý |
|
|
|
$ |
420,175Ìý |
|
| Finance lease cost – amortization of right-of-use assets |
|
749Ìý |
|
|
|
3,700Ìý |
|
| Finance lease cost – interest on lease liabilities |
|
462Ìý |
|
|
|
1,018Ìý |
|
| Short-term lease cost |
|
8,586Ìý |
|
|
|
3,696Ìý |
|
| Variable lease cost |
|
54,460Ìý |
|
|
|
109,935Ìý |
|
| Impairment |
|
9,177Ìý |
|
|
|
10,728Ìý |
|
| Gain recognized from sale-leaseback transactions |
|
—Ìý |
|
|
|
(11,329) |
|
|
|
|
|
|
|
| Total lease cost |
|
$ |
527,758Ìý
|
|
|
|
$ |
537,923Ìý
|
|
Supplemental cash flow information related to leases was as follows:
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|
|
Year Ended March |
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|
|
|
|
| (In thousands) |
|
2021 |
|
|
2020 |
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
| Operating cash flows – operating leases |
|
$ |
425,975Ìý |
|
|
|
$ |
391,344Ìý |
|
| Operating cash flows – finance leases |
|
552Ìý |
|
|
|
1,018Ìý |
|
| Financing cash flows – finance leases |
|
1,112Ìý |
|
|
|
4,890Ìý |
|
| Right-of-use assets obtained in exchange for lease liabilities: |
|
|
|
|
|
Operating leases (a)
|
|
636,613Ìý |
|
|
|
478,879Ìý |
|
| Finance leases |
|
—Ìý |
|
|
|
—Ìý |
|
(a)The year ended March 2020 excludes amounts recorded upon adoption of ASC 842.
Lease terms and discount rates were as follows:
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|
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|
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March 2021 |
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|
March 2020 |
| Weighted average remaining lease term: |
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|
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| Operating leases |
|
6.77 years |
|
|
5.23 years |
| Finance leases |
|
15.50 years |
|
|
16.51 years |
|
|
|
|
|
|
| Weighted average discount rate: |
|
|
|
|
|
| Operating leases |
|
1.80Ìý |
% |
|
|
2.23Ìý |
% |
| Finance leases |
|
2.71Ìý |
% |
|
|
2.71Ìý |
% |
Maturities of operating and finance lease liabilities for the next five fiscal years and thereafter as of March 2021 were as follows:
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|
|
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|
|
|
|
|
|
| (In thousands) |
|
Operating Leases |
|
Finance Leases |
|
Total |
|
| 2022 |
|
$ |
434,867Ìý |
|
|
$ |
1,536Ìý |
|
|
$ |
436,403Ìý |
|
|
| 2023 |
|
346,633Ìý |
|
|
1,536Ìý |
|
|
348,169Ìý |
|
|
| 2024 |
|
244,885Ìý |
|
|
1,536Ìý |
|
|
246,421Ìý |
|
|
| 2025 |
|
175,169Ìý |
|
|
1,536Ìý |
|
|
176,705Ìý |
|
|
| 2026 |
|
119,169Ìý |
|
|
1,536Ìý |
|
|
120,705Ìý |
|
|
| Thereafter |
|
425,820Ìý |
|
|
16,005Ìý |
|
|
441,825Ìý |
|
|
| Total lease payments |
|
1,746,543Ìý
|
|
|
23,685Ìý
|
|
|
1,770,228Ìý
|
|
|
| Less: present value adjustment |
|
106,087Ìý |
|
|
4,374Ìý |
|
|
110,461Ìý |
|
|
| Present value of lease liabilities |
|
$ |
1,640,456Ìý
|
|
|
$ |
19,311Ìý
|
|
|
$ |
1,659,767Ìý
|
|
|
The Company excluded approximatelyÌý$23.1 millionÌýof leases (undiscounted basis) that have not yet commenced, relating primarily to distribution centers. These leases will commence beginning in Fiscal 2022 with lease terms ofÌý2ÌýtoÌý10Ìýyears.
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 |
$ |
349,173Ìý |
|
| Contingent rent expense |
34,209Ìý |
|
| Rent expense |
$ |
383,382Ìý
|
|
|
| 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 |
|
|
$ |
1,474,434Ìý |
|
|
|
$ |
1,273,514Ìý |
|
| Finance lease assets |
Property, plant and equipment, net |
|
|
14,250Ìý |
|
|
|
18,260Ìý |
|
| Total lease assets |
|
|
|
$ |
1,488,684Ìý
|
|
|
|
$ |
1,291,774Ìý
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
| Current |
|
|
|
|
|
|
|
| Operating lease liabilities |
Accrued liabilities |
|
|
$ |
403,995Ìý |
|
|
|
$ |
352,578Ìý |
|
| Finance lease liabilities |
Current portion of long-term debt |
|
|
1,023Ìý |
|
|
|
1,018Ìý |
|
| Noncurrent |
|
|
|
|
|
|
|
| Operating lease liabilities |
Operating lease liabilities |
|
|
1,236,461Ìý |
|
|
|
1,020,651Ìý |
|
| Finance lease liabilities |
Long-term debt |
|
|
18,288Ìý |
|
|
|
22,755Ìý |
|
| Total lease liabilities |
|
|
|
$ |
1,659,767Ìý
|
|
|
|
$ |
1,397,002Ìý
|
|
The components of lease costs were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March |
|
|
|
|
|
|
| (In thousands) |
|
2021 |
|
|
2020 |
| Operating lease cost |
|
$ |
454,324Ìý |
|
|
|
$ |
420,175Ìý |
|
| Finance lease cost – amortization of right-of-use assets |
|
749Ìý |
|
|
|
3,700Ìý |
|
| Finance lease cost – interest on lease liabilities |
|
462Ìý |
|
|
|
1,018Ìý |
|
| Short-term lease cost |
|
8,586Ìý |
|
|
|
3,696Ìý |
|
| Variable lease cost |
|
54,460Ìý |
|
|
|
109,935Ìý |
|
| Impairment |
|
9,177Ìý |
|
|
|
10,728Ìý |
|
| Gain recognized from sale-leaseback transactions |
|
—Ìý |
|
|
|
(11,329) |
|
|
|
|
|
|
|
| Total lease cost |
|
$ |
527,758Ìý
|
|
|
|
$ |
537,923Ìý
|
|
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 |
|
$ |
425,975Ìý |
|
|
|
$ |
391,344Ìý |
|
| Operating cash flows – finance leases |
|
552Ìý |
|
|
|
1,018Ìý |
|
| Financing cash flows – finance leases |
|
1,112Ìý |
|
|
|
4,890Ìý |
|
| Right-of-use assets obtained in exchange for lease liabilities: |
|
|
|
|
|
Operating leases (a)
|
|
636,613Ìý |
|
|
|
478,879Ìý |
|
| Finance leases |
|
—Ìý |
|
|
|
—Ìý |
|
(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 |
|
1.80Ìý |
% |
|
|
2.23Ìý |
% |
| Finance leases |
|
2.71Ìý |
% |
|
|
2.71Ìý |
% |
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 |
|
$ |
434,867Ìý |
|
|
$ |
1,536Ìý |
|
|
$ |
436,403Ìý |
|
|
| 2023 |
|
346,633Ìý |
|
|
1,536Ìý |
|
|
348,169Ìý |
|
|
| 2024 |
|
244,885Ìý |
|
|
1,536Ìý |
|
|
246,421Ìý |
|
|
| 2025 |
|
175,169Ìý |
|
|
1,536Ìý |
|
|
176,705Ìý |
|
|
| 2026 |
|
119,169Ìý |
|
|
1,536Ìý |
|
|
120,705Ìý |
|
|
| Thereafter |
|
425,820Ìý |
|
|
16,005Ìý |
|
|
441,825Ìý |
|
|
| Total lease payments |
|
1,746,543Ìý
|
|
|
23,685Ìý
|
|
|
1,770,228Ìý
|
|
|
| Less: present value adjustment |
|
106,087Ìý |
|
|
4,374Ìý |
|
|
110,461Ìý |
|
|
| Present value of lease liabilities |
|
$ |
1,640,456Ìý
|
|
|
$ |
19,311Ìý
|
|
|
$ |
1,659,767Ìý
|
|
|
The Company excluded approximatelyÌý$23.1 millionÌýof leases (undiscounted basis) that have not yet commenced, relating primarily to distribution centers. These leases will commence beginning in Fiscal 2022 with lease terms ofÌý2ÌýtoÌý10Ìýyears.
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 |
$ |
349,173Ìý |
|
| Contingent rent expense |
34,209Ìý |
|
| Rent expense |
$ |
383,382Ìý
|
|
|