Red Lobster 2001 Annual Report Download - page 34

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6
OTHER ASSETS
The components of other assets are as follows:
May 27, 2001 May 28, 2000
Prepaid pension $ 45,624 $ 42,893
Prepaid interest and loan costs 19,768 20,312
Liquor licenses 18,642 17,599
Intangible assets 20,619 11,211
Prepaid equipment maintenance 1,641 4,103
Miscellaneous 4,507 6,304
Total other assets $110,801 $102,422
NOTE 7
SHORT-TERM DEBT
Short-term debt at May 27, 2001, and May 28, 2000,
consisted of $12,000 and $115,000, respectively, of
unsecured commercial paper borrowings with original
maturities of one month or less. The debt bore inter-
est rates of 4.3 percent at May 27, 2001, and 6.36 to
6.75 percent at May 28, 2000.
NOTE 8
LONG-TERM DEBT
The components of long-term debt are as follows:
May 27, 2001 May 28, 2000
8.375% senior notes due
September 2005 $150,000 $
6.375% notes due
February 2006 150,000 150,000
7.45% medium-term notes
due April 2011 75,000
7.125% debentures
due February 2016 100,000 100,000
ESOP loan with variable rate
of interest (4.45% at May 27,
2001) due December 2018 44,455 52,600
Other 2,647 5,160
Total long-term debt 522,102 307,760
Less issuance discount (1,528) (1,174)
Total long-term debt, less
issuance discount 520,574 306,586
Less current portion (2,647) (2,513)
Long-term debt, excluding
current portion $517,927 $304,073
In July 2000, the Company registered $500,000
of debt securities with the Securities and Exchange
Commission (SEC) using a shelf registration process.
Under this process, the Company may offer, from time
to time, up to $500,000 of debt securities. In Septem-
ber 2000, the Company issued $150,000 of unsecured
8.375 percent senior notes due in September 2005.
The senior notes rank equally with all of the Company’s
other unsecured and unsubordinated debt and are
senior in right of payment to all of the Company’s
future subordinated debt.
In November 2000, Darden filed a prospectus supple-
ment with the SEC to offer up to $350,000 of medium-
term notes from time to time as part of the shelf registration
process referred to above. In April 2001, under this pro-
gram, the Company issued $75,000 of unsecured 7.45
percent medium-term notes due in April 2011.
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 agree-
ments 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.
32
2001
DARDEN RESTAURANTS