Red Lobster 2008 Annual Report Download - page 63

Notes to Consolidated Financial Statements
DARDEN RESTAURANTS, INC. 59
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 6
LAND, BUILDINGS AND EQUIPMENT, NET
The components of land, buildings and equipment, net, are
as follows:
May 25, May 27,
(in millions) 2008 2007
Land $ 751.8 $ 595.8
Buildings 2,846.4 2,299.7
Equipment 1,187.2 996.5
Assets under capital leases 68.6 –
Construction in progress 137.7 69.4
Total land, buildings and equipment 4,991.7 3,961.4
Less accumulated depreciation
and amortization (1,923.4) (1,777.0)
Less depreciation associated with assets
under capital leases (2.3) –
Land, buildings, and equipment, net $ 3,066.0 $ 2,184.4
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 three 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 three-year leaseback period on a straight-line basis. During
fiscal 2008 and fiscal 2007, we recognized gains of $5.1 million
and $2.8 million, respectively, 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 7
OTHER ASSETS
The components of other assets are as follows:
May 25, May 27,
(in millions) 2008 2007
Pension over-funding $ 26.8 $ 17.1
Trust-owned life insurance 53.8 60.3
Capitalized software costs, net 27.4 30.4
Liquor licenses 38.5 23.6
Value of acquired below-market leases 23.8 –
Loan costs 19.6 8.6
Miscellaneous 31.9 11.0
Total other assets $221.8 $151.0
NOTE 8
SHORT-TERM DEBT
Short-term debt at May 25, 2008 consisted of $48.4 million and
$130.0 million of unsecured commercial paper borrowings
with original maturities of one month or less and borrowings
under the New Revolving Credit Agreement (as defined in
Note 10 – Long-Term Debt), respectively. As of May 25, 2008,
commercial paper borrowings and borrowings under the New
Revolving Credit Agreement bore interest rates of 2.85 percent
and 3.14 percent, respectively. As of May 27, 2007, short-term
debt consisted of unsecured commercial paper borrowings of
$211.4 million.
NOTE 9
OTHER CURRENT LIABILITIES
The components of other current liabilities are as follows:
May 25, May 27,
(in millions) 2008 2007
Non-qualified deferred compensation plan $143.8 $146.9
Sales and other taxes 52.6 42.3
Insurance-related 56.0 54.4
Miscellaneous 57.7 31.7
Employee benefits 36.0 18.1
Accrued interest 19.0 11.6
Total other current liabilities $365.1 $305.0
NOTE 10
LONG-TERM DEBT
The components of long-term debt are as follows:
May 25, May 27,
(in millions) 2008 2007
4.875% senior notes due August 2010 $ 150.0 $150.0
7.450% medium-term notes due April 2011 75.0 75.0
5.625% senior notes due October 2012 350.0 –
7.125% debentures due February 2016 100.0 100.0
6.200% senior notes due October 2017 500.0 –
6.000% senior notes due August 2035 150.0 150.0
6.800% senior notes due October 2037 300.0 –
ESOP loan with variable rate of interest (2.864%
at May 25, 2008) due December 2018 15.5 19.1
Total long-term debt 1,640.5 494.1
Less issuance discount (6.2) (2.5)
Total long-term debt less issuance discount 1,634.3 491.6
Less current portion – –
Long-term debt, excluding current portion $1,634.3 $491.6