Red Lobster 2010 Annual Report Download - page 33

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DARDEN RESTAURANTS, INC. | 2010 ANNUAL REPORT 31
Notes to Consolidated Financial Statements
Darden Restaurants
DARDEN RESTAURANTS, INC. | 2010 ANNUAL REPORT 31
Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Darden
A summary of our contractual obligations and commercial commitments at May 30, 2010, is as follows (in millions):
Payments Due by Period
Less Than 1-3 3-5 More Than
Contractual Obligations Total 1 Year Years Years 5 Years
Long-term debt (1) $ 2,759.3 $ 323.2 $ 518.8 $ 139.2 $ 1,778.1
Operating leases 756.4 126.6 218.8 160.1 250.9
Purchase obligations (2) 560.2 514.4 45.8 – –
Capital lease obligations (3) 105.1 5.1 10.5 10.9 78.6
Benefit obligations (4) 215.2 28.4 34.1 42.5 110.2
Unrecognized income tax benefits (5) 36.4 0.3 33.9 2.2 –
Total contractual obligations $ 4,432.6 $ 998.0 $ 861.9 $ 354.9 $ 2,217.8
Amount of Commitment Expiration per Period
Other Commercial Total Less Than 1-3 3-5 More Than
Commitments Committed 1 Year Years Years 5 Years
Standby letters of credit (6) $ 117.3 $ 117.3 $ – $ – $ –
Guarantees (7) 9.0 1.6 2.7 2.4 2.3
Total commercial commitments $ 126.3 $ 118.9 $ 2.7 $ 2.4 $ 2.3
(1) Includes interest payments associated with existing long-term debt, including the current portion. Variable-rate interest payments associated with the ESOP loan were estimated based on an average
interest rate of 4.0 percent. Excludes issuance discount of $4.9 million.
(2) Includes commitments for food and beverage items and supplies, capital projects and other miscellaneous commitments.
(3) Includes total imputed interest of $46.2 million over the life of the capital lease obligations.
(4) Includes expected contributions associated with our defined benefit plans and payments associated with our postretirement benefit plan and our non-qualified deferred compensation plan through
fiscal 2020.
(5) Includes interest on unrecognized income tax benefits of $6.1 million.
(6) Includes letters of credit for $97.3 million of workers’ compensation and general liabilities accrued in our consolidated financial statements, $58.4 million of which are backed by our Revolving Credit
Agreement, letters of credit for $1.4 million of lease payments included in the contractual operating lease obligation payments noted above and other letters of credit totaling $18.6 million.
(7) Consists solely of guarantees associated with leased properties that have been assigned to third parties. We are not aware of any non-performance under these arrangements that would result in our
having to perform in accordance with the terms of the guarantees.