Red Lobster 2005 Annual Report Download - page 40

Notes to Consolidated Financial Statements
Financial Review 2005
48 Darden Restaurants
NOTE 5
Other Assets
The components of other assets are as follows:
May 29, May 30,
2005 2004
Prepaid pension costs $ 63,475 $ 67,077
Trust-owned life insurance 43,873 40,422
Capitalized software costs, net 31,165 32,328
Liquor licenses 24,570 22,201
Prepaid interest and loan costs 8,008 12,396
Miscellaneous 7,960 9,001
Total other assets $179,051 $183,425
NOTE 6
Short-Term Debt
Short-term debt at May 29, 2005 and May 30, 2004,
consisted of $0 and $14,500, respectively, of unsecured
commercial paper borrowings with original maturities of
one month or less. The debt bore an interest rate of 1.09
percent at May 30, 2004.
NOTE 7
Other Current Liabilities
The components of other current liabilities are as follows:
May 29, May 30,
2005 2004
Employee benefits $134,272 $115,083
Sales and other taxes 39,011 40,122
Insurance 35,938 38,254
Miscellaneous 34,458 24,388
Accrued interest 10,499 10,477
Total other current liabilities $254,178 $228,324
NOTE 8
Long-Term Debt
The components of long-term debt are as follows:
May 29, May 30,
2005 2004
8.375% senior notes due September 2005 $ 150,000 $ 150,000
6.375% notes due February 2006 150,000 150,000
5.75% medium-term notes due March 2007 150,000 150,000
7.45% medium-term notes due April 2011 75,000 75,000
7.125% debentures due February 2016 100,000 100,000
ESOP loan with variable rate of interest
(3.42% at May 29, 2005) due December 2018 26,010 29,403
Total long-term debt 651,010 654,403
Less issuance discount (763) (1,054)
Total long-term debt less issuance discount 650,247 653,349
Less current portion (299,929) –
Long-term debt, excluding current portion $ 350,318 $ 653,349
In July 2000, we registered $500,000 of debt securities
with the Securities and Exchange Commission (SEC) using
a shelf registration process. Under this process, we may
offer, from time to time, up to an aggregate of $500,000 of
debt securities. In September 2000, we issued $150,000
of unsecured 8.375 percent senior notes due in Septem-
ber 2005. The senior notes rank equally with all of our other
unsecured and unsubordinated debt and will be senior in
right of payment to any future subordinated debt we may
issue. In April 2001, we issued $75,000 of unsecured 7.45
percent medium-term notes due in April 2011. In March
2002, we issued $150,000 of unsecured 5.75 percent
medium-term notes due in March 2007. At May 29, 2005,
our shelf registration provides for the issuance of an addi-
tional $125,000 of unsecured debt securities.
In January 1996, we 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.
Concurrent with the issuance of the notes and debentures,
we 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.