Red Lobster 2009 Annual Report Download - page 46

44 Darden Restaurants, Inc. 2009 Annual Report
Fiscal Year Ended
May 31, May 25, May 27,
(In millions) 2009 2008 2007
Cash flows – operating activities
Net earnings $ 372.2 $ 377.2 $ 201.4
(Earnings) losses from discontinued operations, net of tax benefit (0.4) (7.7) 175.7
Adjustments to reconcile net earnings from continuing operations to cash flows:
Depreciation and amortization 283.1 245.7 200.4
Asset impairment charges, net 12.0 – 2.4
Amortization of loan costs 3.3 2.3 1.7
Stock-based compensation expense 41.5 48.9 31.6
Change in current assets and liabilities (69.4) 53.7 (20.5)
Contribution to postretirement plan (1.2) (1.2) (0.8)
Loss on disposal of land, buildings and equipment 1.1 2.2 3.1
Change in cash surrender value of trust-owned life insurance 17.1 4.6 (10.4)
Deferred income taxes 89.5 31.1 (27.1)
Change in deferred rent 16.1 12.8 2.5
Change in other liabilities 11.3 (17.0) 3.3
Income tax benefits from exercise of stock-based compensation credited to goodwill 0.9 8.0 –
Other, net 6.4 6.2 6.5
Net cash provided by operating activities of continuing operations $ 783.5 $ 766.8 $ 569.8
Cash flows – investing activities
Purchases of land, buildings and equipment (535.3) (429.2) (345.2)
Proceeds from disposal of land, buildings and equipment 4.6 5.9 57.9
Purchases of marketable securities (42.0) – –
Proceeds from sale of marketable securities 13.9 8.2 –
Cash used in business combination, net of cash acquired – (1,198.1) –
Increase in other assets (3.6) (2.5) (2.2)
Net cash used in investing activities of continuing operations $ (562.4) $ (1,615.7) $ (289.5)
Cash flows – financing activities
Proceeds from issuance of common stock 57.5 66.8 56.6
Income tax benefits credited to equity 22.2 23.5 40.0
Dividends paid (110.2) (100.9) (65.7)
Purchases of treasury stock (144.9) (159.4) (371.2)
ESOP note receivable repayments 3.9 3.6 3.3
Proceeds from Interim Credit Agreement – 1,150.0 –
Repayment of Interim Credit Agreement – (1,150.0) –
(Payments) proceeds from issuance of short-term debt (28.4) (33.0) 167.4
Proceeds from issuance of long-term debt – 1,150.0 –
Payments of debt issuance costs – (16.0) –
Repayment of long-term debt (3.9) (3.6) (153.3)
Repayment of acquired convertible notes – (125.0) –
Principal payments on capital leases (1.0) (0.5) –
Net cash (used in) provided by financing activities of continuing operations $ (204.8) $ 805.5 $ (322.9)
Cash flows – discontinued operations
Net cash (used in) provided by operating activities of discontinued operations (1.1) (32.6) 36.6
Net cash provided by (used in) investing activities of discontinued operations 4.5 89.0 (6.1)
Net cash provided by discontinued operations $ 3.4 $ 56.4 $ 30.5
Increase (decrease) in cash and cash equivalents 19.7 13.0 (12.1)
Cash and cash equivalents – beginning of year 43.2 30.2 42.3
Cash and cash equivalents – end of year $ 62.9 $ 43.2 $ 30.2
Cash flows from changes in current assets and liabilities
Receivables 32.4 (1.5) (5.9)
Inventories (30.2) 9.5 (14.2)
Prepaid expenses and other current assets 0.5 (2.6) (5.6)
Accounts payable (25.2) 38.6 (23.6)
Accrued payroll 8.8 – (8.2)
Prepaid/Accrued income taxes (55.9) (30.6) 11.1
Other accrued taxes 4.9 2.1 0.7
Unearned revenues (16.3) 2.8 11.8
Other current liabilities 11.6 35.4 13.4
Change in current assets and liabilities $ (69.4) $ 53.7 $ (20.5)
See accompanying notes to consolidated financial statements.
Consolidated Statements of Cash Flows