Red Lobster 2012 Annual Report Download - page 58

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Notes to Consolidated Financial Statements
Darden
54 Darden Restaurants, Inc. 2012 Annual Report
`NOTE 14
LEASES
An analysis of rent expense incurred related to restaurants in continuing
operations is as follows:
Fiscal Year
(in millions)
2012 2011 2010
Restaurant minimum rent $130.9 $120.6 $111.7
Restaurant percentage rent 5.6 5.3 5.1
Restaurant rent averaging expense 12.9 11.1 10.0
Transportation equipment 3.5 3.2 3.3
Office equipment 0.6 0.4 0.8
Office space 1.0 0.9 4.5
Warehouse space 0.6 0.5 0.5
Total rent expense $155.1 $142.0 $135.9
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 27,
2012 and thereafter is as follows:
(in millions)
Fiscal Year Capital Operating
2013 $ 5.2 $151.5
2014 5.4 142.0
2015 5.5 130.0
2016 5.6 114.5
2017 5.8 96.3
Thereafter 67.2 302.5
Total future lease commitments $ 94.7 $936.8
Less imputed interest (at 6.5%) (38.7)
Present value of future lease commitments $ 56.0
Less current maturities (1.6)
Obligations under capital leases,
net of current maturities $ 54.4
`NOTE 15
INTEREST, NET
The components of interest, net are as follows:
Fiscal Year
(in millions)
2012 2011 2010
Interest expense $102.7 $93.7 $95.7
Imputed interest on capital leases 3.7 3.8 3.9
Capitalized interest (3.9) (3.0) (4.4)
Interest income (0.9) (0.9) (1.3)
Interest, net $101.6 $93.6 $93.9
Capitalized interest was computed using our average borrowing rate.
Interest paid, net of amounts capitalized was as follows:
Fiscal Year
(in millions)
2012 2011 2009
Interest paid, net of amounts capitalized $94.8 $98.3 $95.3
`NOTE 16
INCOME TAXES
Total income tax expense was allocated as follows:
Fiscal Year
(in millions)
2012 2011 2010
Earnings from continuing operations $161.5 $168.9 $136.6
Losses from discontinued operations (0.7) (1.5) (1.5)
Total consolidated income tax expense $160.8 $167.4 $135.1
The components of earnings before income taxes from continuing operations
and the provision for income taxes thereon are as follows:
Fiscal Year
(in millions)
2012 2011 2010
Earnings from continuing operations
before income taxes:
U.S. $621.4 $631.4 $534.5
Canada 16.6 16.2 9.1
Earnings from continuing operations
before income taxes $638.0 $647.6 $543.6
Income taxes:
Current:
Federal $ 97.0 $121.9 $126.5
State and local 26.0 17.5 28.7
Canada 2.4 0.1 0.1
Total current $125.4 $139.5 $155.3
Deferred (principally U.S.):
Federal 37.6 28.3 (10.6)
State and local (1.5) 1.1 (8.1)
Total deferred $ 36.1 $ 29.4 $(18.7)
Total income taxes $161.5 $168.9 $136.6
Income taxes paid were as follows:
Fiscal Year
(in millions)
2012 2011 2010
Income taxes paid $123.5 $126.4 $94.8