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36 Darden Restaurants, Inc. Annual Report 2007
N
Note1
Consolidated Statements of Cash Flows
Fiscal Year Ended
(In millions) May 27, 2007 May 28, 2006 May 29, 2005
Cas
h flows – operating activities
Net earnings $ 201.4 $ 338.2 $ 290.6
Losses from discontinued operations, net of tax benefit 175.7 13.6 9.3
Adjustments to reconcile net earnings from continuing operations
to cash flows:
Depreciation and amortization 200.4 197.0 194.7
Asset impairment charges, net 2.4 1.3 2.0
Amortization of loan costs 1.7 3.0 3.6
Change in current assets and liabilities (20.5) 127.3 19.6
Contribution to postretirement plan (0.8) (0.4) (0.5)
Loss on disposal of land, buildings and equipment 3.1 2.4 1.1
Change in cash surrender value of trust-owned life insurance (10.4) (6.0) (3.4)
Deferred income taxes (27.1) (30.7) (33.6)
Change in deferred rent 2.5 4.8 5.2
Change in other liabilities 3.3 2.5 9.7
Income tax benefits credited to equity – 34.3 43.0
Stock-based compensation expense 31.6 12.5 9.9
Other, net 6.5 (0.7) (1.2)
Net cash provided by operating activities of continuing operations $ 569.8 $ 699.1 $ 550.0
Cash flows – investing activities
Purchases of land, buildings and equipment (345.2) (273.5) (210.4)
Increase in other assets (2.2) (5.4) (1.2)
Proceeds from disposal of land, buildings and equipment 57.9 20.6 18.0
Net cash used in investing activities of continuing operations $(289.5) $(258.3) $(193.6)
Cash flows – financing activities
Proce
eds from issuance of common stock 56.6 61.8 74.7
Income tax benefits credited to equity 40.0 – –
Dividends paid (65.7) (59.2) (12.5)
Purchases of treasury stock (371.2) (434.2) (311.7)
ESOP note receivable repayments 3.3 3.6 3.4
Increase (decrease) in short-term debt 167.4 44.0 (14.5)
Proceeds from issuance of long-term debt – 294.7 –
Repayment of long-term debt (153.3) (303.6) (3.4)
Net cash used in financing activities of continuing operations $(322.9) $(392.9) $(264.0)
Cash flows – discontinued operations
Net cash provided by operating activities of discontinued operations 36.6 17.9 33.2
Net cash used in investing activities of discontinued operations (6.1) (66.3) (119.5)
Net cash provided by (used in) discontinued operations $ 30.5 $ (48.4) $ (86.3)
(Decrease) increase in cash and cash equivalents (12.1) (0.5) 6.1
Cash and cash equivalents – beginning of year 42.3 42.8 36.7
Cash and cash equivalents – end of year $ 30.2 $ 42.3 $ 42.8
Cash flows from changes in current assets and liabilities
Receivables (5.9) (0.7) (5.4)
Inventories (14.2) 37.0 (35.8)
Prepaid expenses and other current assets (5.6) (2.1) (3.9)
Accounts payable (23.6) 29.4 8.8
Accrued payroll (8.2) 7.9 10.0
Accrued income taxes 11.1 12.4 3.7
Other accrued taxes 0.7 2.5 4.1
Unearned revenues 11.8 11.5 12.2
Other current liabilities 13.4 29.4 25.9
Change in current assets and liabilities $ (20.5) $ 127.3 $ 19.6
See accompanying notes to consolidated financial statements.