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44 Darden Restaurants, Inc. Annual Report 2007
Notes to Consolidated Financial Statements
N
Note9
Note10
The results of operations for all Red Lobster and Olive Garden
restaurants permanently closed in fiscal 2007, 2006 and 2005, that
would otherwise have met the criteria for discontinued operations
reporting are not material to our consolidated financial position,
results of operations or cash flows and, therefore, have not been
presented as discontinued operations.
Note5
Land, Buildings and Equipment, Net
The components of land, buildings and equipment, net, are
as follows:
(in millions) May 27, 2007 May 28, 2006
Land $ 595.8 $ 603.2
Buildings 2,299.7 2,472.2
Equipment 996.5 1,052.2
Construction in progress 69.4 100.9
Total land, buildings and equipment 3,961.4 4,228.5
Less accumulated depreciation and amortization (1,777.0) (1,782.5)
Land, buildings, and equipment, net $ 2,184.4 $ 2,446.0
On August 24, 2006, we completed the sale and leaseback of
our Restaurant Support Center (RSC) for $45.2 million. The RSC
houses all of our executive offices, shared service functions and
concept administrative personnel. The transaction was completed in
anticipation of moving the RSC to a new facility approximately four
years from the date of sale. As a result of the sale and subsequent
leaseback of the RSC, we recorded a $15.2 million deferred gain,
which is being recognized over the four-year leaseback period on a
straight-line basis. During fiscal 2007, we recognized $2.8 million of
gain on the sale of the RSC, which is included as a reduction of
selling, general and administrative expenses in our consolidated
statements of earnings.
Note6
Other Assets
The components of other assets are as follows:
(in millions) May 27, 2007 May 28, 2006
Pension over-funding $ 17.1 $ –
Prepaid pension costs – 58.4
Trust-owned life insurance 60.3 49.9
Capitalized software costs, net 30.4 31.0
Liquor licenses 23.6 25.0
Loan costs 8.6 9.7
Miscellaneous 11.0 12.6
Total other assets $151.0 $186.6
Note7
Short-Term Debt
Short-term debt at May 27, 2007 and May 28, 2006 consisted of
$211.4 million and $44.0 million, respectively, of unsecured commer-
cial paper borrowings with original maturities of one month or less.
The debt bore an interest rate of 5.34 percent at May 27, 2007.
Note8
Other Current Liabilities
The components of other current liabilities are as follows:
(in millions) May 27, 2007 May 28, 2006
Non-qualified deferred compensation plan $146.9 $124.7
Sales and other taxes 42.3 43.7
Insurance related 54.4 40.6
Miscellaneous 31.7 36.7
Employee benefits 18.1 28.0
Accrued interest 11.6 9.6
Total other current liabilities $305.0 $283.3