LEASES
Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail
shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs
associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements
are not material to our Consolidated Financial Statements.
Components of our lease cost are as follows:
Fiscal Year
In Millions
2026
2025
2024
Operating lease cost
$138.5
$145.7
$128.9
Variable lease cost
6.8
7.5
8.9
Short-term lease cost
31.1
32.6
32.2
Maturities of our operating and finance lease obligations by fiscal year are as follows:
In Millions
Operating
Leases
Finance Leases
Fiscal 2027
$118.4
$0.4
Fiscal 2028
100.3
Fiscal 2029
78.5
Fiscal 2030
51.4
Fiscal 2031
38.3
After fiscal 2031
69.3
Total noncancelable future lease obligations
$456.2
$0.4
Less: Interest
(53.8)
Present value of lease obligations
$402.4
$0.4
The lease payments presented in the table above exclude $95.5 million of minimum lease payments for operating leases we have
committed to but have not yet commenced as of May 31, 2026.
The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows:
May 31, 2026
May 25, 2025
Weighted-average remaining lease term
5.0 years
5.0 years
Weighted-average discount rate
4.7%
4.9%
In addition, we had $12.3 million of right of use assets and $12.3 million of related lease liabilities classified as held for sale as of
May 31, 2026.
Supplemental operating cash flow information and non-cash activity related to our operating leases, including those classified as held-
for-sale, are as follows:
Fiscal Year
In Millions
2026
2025
Cash paid for amounts included in the measurement of lease liabilities
$140.6
$152.7
Right of use assets obtained in exchange for new lease liabilities
$97.6
$163.4
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Historical Timeline

Fiscal YearFiled
2026Jul 1, 2026Showing above
2025Jun 26, 2025
2024Jun 26, 2024
2023Jun 28, 2023
2022Jun 30, 2022
2021Jun 30, 2021
2020Jul 2, 2020
2019Jun 28, 2019
2018Jun 29, 2018
2017Jun 29, 2017
2016Jun 30, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.