Red Lobster 2003 Annual Report Download - page 28

26 DARDEN RESTAURANTS
Darden Restaurants
Report of Management Responsibilities Independent AuditorsÕ Report
The management of Darden Restaurants, Inc. is responsible for
the fairness and accuracy of the consolidated financial statements.
The consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in the
United States of America, using management’s best estimates
and judgments where appropriate. The financial information
throughout this report is consistent with our consolidated
financial statements.
Management has established a system of internal controls
that provides reasonable assurance that assets are adequately safe-
guarded, and transactions are recorded accurately, in all material
respects, in accordance with management’s authorization. We
maintain a strong audit program that independently evaluates
the adequacy and effectiveness of internal controls. Our internal
controls provide for appropriate separation of duties and respon-
sibilities, and there are documented policies regarding utilization
of our assets and proper financial reporting. These formally stated
and regularly communicated policies set high standards of ethical
conduct for all employees.
The Audit Committee of the Board of Directors meets at
least quarterly to determine that management, internal auditors,
and independent auditors are properly discharging their duties
regarding internal control and financial reporting. The independ-
ent auditors, internal auditors, and employees have full and free
access to the Audit Committee at any time.
KPMG LLP, independent certified public accountants,
are retained to audit our consolidated financial statements.
Their report follows.
Joe R. Lee
Chairman of the Board and
Chief Executive Officer
The Board of Directors and Stockholders
Darden Restaurants, Inc.
We have audited the accompanying consolidated balance sheets of
Darden Restaurants, Inc. and subsidiaries as of May 25, 2003, and
May 26, 2002, and the related consolidated statements of earn-
ings, changes in stockholders’ equity and accumulated other com-
prehensive income, and cash flows for each of the years in the
three-year period ended May 25, 2003. These consolidated
financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing stan-
dards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects, the finan-
cial position of Darden Restaurants, Inc. and subsidiaries as of
May 25, 2003, and May 26, 2002, and the results of their opera-
tions and their cash flows for each of the years in the three-year
period ended May 25, 2003, in conformity with accounting
principles generally accepted in the United States of America.
Orlando, Florida
June 17, 2003