Red Lobster 2012 Annual Report Download - page 31

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Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Darden
Darden Restaurants, Inc. 2012 Annual Report 27
A summary of our contractual obligations and commercial commitments at May 27, 2012, is as follows:
Payments Due by Period
(in millions) Less Than 1-3 3-5 More Than
Contractual Obligations Total 1 Year Years Years 5 Years
Short-term debt $ 262.7 $ 262.7 $ — $ — $ —
Long-term debt (1) 2,917.6 447.2 173.6 265.6 2,031.2
Operating leases 936.8 151.5 272.0 210.8 302.5
Purchase obligations (2) 675.0 650.5 16.5 8.0 —
Capital lease obligations (3) 94.7 5.2 10.9 11.4 67.2
Benefit obligations (4) 461.0 38.1 77.0 85.3 260.6
Unrecognized income tax benefits (5) 17.4 1.2 11.1 5.1 —
Total contractual obligations $5,365.2 $1,556.4 $561.1 $586.2 $2,661.5
Amount of Commitment Expiration per Period
(in millions)
Total Amounts Less Than 1-3 3-5 More Than
Other Commercial Commitments Committed 1 Year Years Years 5 Years
Standby letters of credit (6) $119.5 $119.5 $ — $ — $ —
Guarantees (7) 5.4 1.2 2.1 1.4 0.7
Total commercial commitments $124.9 $120.7 $2.1 $1.4 $0.7
(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 1.3 percent. Excludes issuance discount
of $5.5 million.
(2) Includes commitments for food and beverage items and supplies, capital projects, information technology and other miscellaneous commitments.
(3) Includes total imputed interest of $38.7 million over the life of the capital lease obligation.
(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 2022.
(5) Includes interest on unrecognized income tax benefits of $1.7 million, $0.2 million of which relates to contingencies expected to be resolved within one year.
(6) Includes letters of credit for $99.2 million of workers’ compensation and general liability accruals in our consolidated financial statements, $70.9 million of which are backed by our Revolving Credit Agreement, letters of credit for $0.9 million of lease payments
included in the contractual operating lease obligation payments noted above and other letters of credit totaling $19.4 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.