Red Lobster 2009 Annual Report Download - page 61

2009 Annual Report Darden Restaurants, Inc. 59
Notes to Consolidated Financial Statements
NOTE 14
leaSeS
An analysis of rent expense incurred related to restaurants in continuing
operations is as follows:
Fiscal Year
(In millions) 2009 2008 2007
Restaurant minimum rent $102.4 $ 88.1 $ 64.3
Restaurant percentage rent 6.6 7.7 4.6
Restaurant rent averaging expense 10.5 8.6 (2.5)
Transportation equipment 3.4 2.9 2.8
Office equipment 1.2 1.2 1.1
Office space 6.6 6.8 5.3
Warehouse space 0.5 0.4 0.3
Total rent expense $131.2 $ 115.7 $ 75.9
Rent expense included in discontinued operations was $1.3 million,
$4.5 million and $4.4 million for fiscal 2009, 2008 and 2007, 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 31, 2009 and thereafter is as follows:
Fiscal Year Capital Operating
2010 $ 5.0 $121.7
2011 5.1 111.1
2012 5.2 98.0
2013 5.3 84.4
2014 5.4 68.0
Thereafter 84.1 246.4
Total future lease commitments 110.1 $729.6
Less imputed interest (at 6.5%) (50.1)
Present value of future lease commitments 60.0
Less current maturities (1.1)
Obligations under capital leases, net of current maturities $ 58.9
NOTE 15
intereSt, net
The components of interest, net are as follows:
Fiscal Year
(In millions) 2009 2008 2007
Interest expense $113.7 $ 89.2 $ 43.6
Imputed interest on capital leases 3.9 2.6 –
Capitalized interest (9.3) (4.9) (2.9)
Interest income (0.9) (1.2) (0.6)
Interest, net $107.4 $ 85.7 $ 40.1
Capitalized interest was computed using our average borrowing rate.
We paid $103.6 million, $73.6 million and $35.8 million for interest
(net of amounts capitalized) in fiscal 2009, 2008 and 2007, respectively.
NOTE 16
income taXeS
Total income tax expense for fiscal 2009, 2008 and 2007 was allocated
as follows:
Fiscal Year
(In millions) 2009 2008 2007
Earnings from continuing operations $140.7 $ 145.2 $ 153.7
Earnings (losses) from
discontinued operations 0.2 3.0 (112.9)
Total consolidated income tax expense $140.9 $ 148.2 $ 40.8
The components of earnings before income taxes from continuing
operations and the provision for income taxes thereon are as follows:
Fiscal Year
(In millions) 2009 2008 2007
Earnings from continuing operations
before income taxes:
U.S. $508.1 $509.6 $524.9
Canada 4.4 5.1 5.9
Earnings from continuing operations
before income taxes $512.5 $514.7 $530.8
Income taxes:
Current:
Federal $ 38.1 $ 98.3 $172.9
State and local 10.5 21.0 33.2
Canada 0.1 0.1 0.1
Total current $ 48.7 $119.4 $206.2
Deferred (principally U.S.) 92.0 25.8 (52.5)
Total income taxes $140.7 $145.2 $153.7
During fiscal 2009, 2008 and 2007, we paid income taxes of
$64.4 million, $119.7 million and $75.9 million, respectively.
The following table is a reconciliation of the U.S. statutory income
tax rate to the effective income tax rate from continuing operations
included in the accompanying consolidated statements of earnings:
Fiscal Year
2009 2008 2007
U.S. statutory rate 35.0% 35.0% 35.0%
State and local income taxes,
net of federal tax benefits 2.3 2.7 3.3
Benefit of federal income tax credits (8.9) (7.9) (6.1)
Other, net (0.9) (1.6) (3.2)
Effective income tax rate 27.5% 28.2% 29.0%
As of May 31, 2009, we had estimated current prepaid federal and
state income taxes of $39.7 million and $13.5 million, respectively,
which are included in our accompanying consolidated balance sheet
as prepaid income taxes.