Red Lobster 2008 Annual Report Download - page 68

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Notes to Consolidated Financial Statements
64 DARDEN RESTAURANTS, INC.
NOTE 14
LEASES
An analysis of rent expense incurred related to restaurants in
continuing operations is as follows:
Fiscal Year
(in millions)
2008 2007 2006
Restaurant minimum rent $ 88.1 $64.3 $59.9
Restaurant percentage rent 7.7 4.6 4.6
Restaurant rent averaging expense 8.6 (2.5) 5.4
Transportation equipment 2.9 2.8 2.3
Office equipment 1.2 1.1 1.1
Office space 6.8 5.3 1.3
Warehouse space 0.4 0.3 0.3
Total rent expense $115.7 $75.9 $74.9
Rent expense included in discontinued operations was
$4.5 million, $4.4 million and $9.2 million for fiscal 2008, 2007
and 2006, respectively. The annual future lease commitments
under capital lease obligations and noncancelable operating
leases, including those related to restaurants reported as
discontinued operations, for each of the five fiscal years
subsequent to May 25, 2008 and thereafter is as follows:
Fiscal Year Capital Operating
2009 $ 4.9 $115.3
2010 5.0 104.9
2011 5.0 93.1
2012 5.1 79.9
2013 5.3 66.1
Thereafter 89.4 238.5
Total future lease commitments 114.7 $697.8
Less imputed interest (at 6.5%) (53.9)
Present value of future lease commitments 60.8
Less current maturities (0.9)
Obligations under capital leases,
net of current maturities $ 59.9
NOTE 15
INTEREST, NET
The components of interest, net, are as follows:
Fiscal Year
(in millions)
2008 2007 2006
Interest expense $89.2 $43.6 $48.9
Imputed interest on capital leases 2.6 – –
Capitalized interest (4.9) (2.9) (1.9)
Interest income (1.2) (0.6) (3.1)
Interest, net $85.7 $40.1 $43.9
Capitalized interest was computed using our average
borrowing rate. We paid $73.6 million, $35.8 million and
$40.3 million for interest (net of amounts capitalized) in
fiscal 2008, 2007 and 2006, respectively.
NOTE 16
INCOME TAXES
Total income tax expense for fiscal 2008, 2007 and 2006 was
allocated as follows:
Fiscal Year
(in millions)
2008 2007 2006
Earnings from continuing
operations $145.2 $ 153.7 $156.3
Earnings (losses) from
discontinued operations 3.0 (112.9) (12.1)
Total consolidated income
tax expense $148.2 $ 40.8 $144.2
The components of earnings before income taxes from
continuing operations and the provision for income taxes
thereon are as follows:
Fiscal Year
(in millions)
2008 2007 2006
Earnings from continuing
operations before income taxes:
U.S. $509.6 $524.9 $500.6
Canada 5.1 5.9 7.5
Earnings from continuing
operations before income taxes $514.7 $530.8 $508.1
Income taxes:
Current:
Federal $ 98.3 $172.9 $158.9
State and local 21.0 33.2 28.1
Canada 0.1 0.1 0.1
Total current $119.4 $206.2 $187.1
Deferred (principally U.S.) 25.8 (52.5) (30.8)
Total income taxes $145.2 $153.7 $156.3
During fiscal 2008, 2007 and 2006, we paid income taxes of
$119.7 million, $75.9 million and $126.3 million, respectively.