Red Lobster 2004 Annual Report Download - page 33

Financial Review 2004
REPORT OF MANAGEMENT RESPONSIBILITIES
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 accor-
dance with U.S. generally accepted accounting principles, 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 pro-
vides reasonable assurance that assets are adequately safeguarded,
and transactions are recorded accurately, in all material respects,
in accordance with managements authorization. We maintain a
strong audit program that independently evaluates the adequacy and
effectiveness of internal controls. Our internal controls provide for
appropriate segregation of duties and responsibilities, and there are
documented policies regarding utilization of our assets and proper
financial reporting. These formally stated and regularly communi-
cated 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
the independent registered public accounting firm are properly
discharging their duties regarding internal control and financial
reporting. The independent registered public accounting firm,
internal auditors, and employees have full and free access to the
Audit Committee at any time.
KPMG LLP, an independent registered public accounting firm,
is retained to audit our consolidated financial statements. Their
report follows.
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
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 30,2004, and
May 25, 2003, and the related consolidated statements of earnings,
changes in stockholders' equity and accumulated other comprehen-
sive income (loss), and cash flows for each of the years in the three-
year period ended May 30, 2004. 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 the standards of the
Public Company Accounting Oversight Board (United States).
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 financial position of
Darden Restaurants, Inc. and subsidiaries as of May 30, 2004, and
May 25,2003, and the results of their operations and their cash flows
for each of the years in the three-year period ended May 30,2004,
in conformity with U.S. generally accepted accounting principles.
Joe R. Lee
Chairman o
f
the Board and Chie
f
Executive O
ff
icer Tampa, Florida
June 18, 2004
Darden Restaurants 33