Red Lobster 2000 Annual Report Download - page 39

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DARDEN RESTAURANTS
Note 5
Land, Buildings and Equipment
The components of land, buildings and equipment are
as follows:
May 28, 2000 May 30, 1999
Land $ 409,069 $ 387,050
Buildings 1,425,557 1,344,625
Equipment 680,178 647,687
Construction in progress 75,027 38,859
Total land, buildings
and equipment 2,589,831 2,418,221
Less accumulated depreciation (1,011,290) (956,686)
Net land, buildings
and equipment $1,578,541 $1,461,535
Note 6
Other Assets
The components of other assets are as follows:
May 28, 2000 May 30, 1999
Prepaid pension $ 42,893 $ 41,253
Prepaid interest and loan costs 20,312 22,391
Liquor licenses 17,599 17,657
Intangible assets 11,211 10,504
Prepaid equipment maintenance 4,103 6,565
Miscellaneous 6,304 6,018
Total other assets $102,422 $104,388
Note 7
Short-term Debt
Short-term debt at May 28, 2000 and May 30, 1999,
consisted of $115,000 and $23,500 of unsecured
commercial paper borrowings with original maturities
of one month or less, and interest rates ranging from
6.36 percent to 6.75 percent and 5.05 percent to
5.80 percent, respectively.
Note 8
Long-term Debt
The components of long-term debt are as follows:
May 28, 2000 May 30, 1999
10-year notes and 20-year
debentures as described below $250,000 $250,000
ESOP loan with variable rate of
interest (6.87 percent at May 28,
2000), due December 31, 2018 52,600 60,200
Other 5,160 7,546
Total long-term debt 307,760 317,746
Less issuance discount (1,174) (1,295)
Total long-term debt less
issuance discount 306,586 316,451
Less current portion (2,513) (2,386)
Long-term debt, excluding
current portion $304,073 $314,065
In January 1996, the Company issued $150,000
of unsecured 6.375 percent notes due in February 2006
and $100,000 of unsecured 7.125 percent debentures
due in February 2016. The proceeds from the issuance
were used to refinance commercial paper borrowings.
Concurrent with the issuance of the notes and debentures,
the Company terminated, and settled for cash, interest-
rate swap agreements with notional amounts totaling
$200,000, which hedged the movement of interest
rates prior to the issuance of the notes and debentures.
The cash paid in terminating the interest-rate swap
agreements is being amortized to interest expense over
the life of the notes and debentures. The effective
annual interest rate is 7.57 percent for the notes and
7.82 percent for the debentures, after consideration of
loan costs, issuance discounts and interest-rate swap
termination costs.
36 DARDEN RESTAURANTS 2000 ANNUAL REPORT