Red Lobster 2012 Annual Report Download - page 64

Notes to Consolidated Financial Statements
Darden
60 Darden Restaurants, Inc. 2012 Annual Report
Items Measured at Fair Value at May 29, 2011
Quoted Prices in Active Market Significant Other Significant
Fair Value of Assets for Identical Assets (Liabilities) Observable Inputs Unobservable Inputs
(In millions) (Liabilities) (Level 1) (Level 2) (Level 3)
Equity:
U.S. & International (1) $ 37.9 $37.9 $ — $ —
U.S. Mutual & Commingled Funds (2) 22.1 1.6 20.5 —
Developed Market Equity Funds (3) 19.7 11.7 8.0 —
Emerging Market Equity Funds (3) 6.9 — 6.9 —
Private Equity Partnerships (4) 25.6 — — 25.6
Private Equity Securities (5) — — — —
Fixed-Income:
Fixed-income Securities (6) 43.2 38.3 4.9 —
Energy & Real Estate Public Sector (7) 9.1 — 4.8 4.3
Real Asset Commingled Funds (8) 4.0 — 4.0 —
Real Asset Private Funds (9) 10.8 — — 10.8
Cash & Accruals 8.1 8.1 — —
Total $187.4 $97.6 $49.1 $40.7
(1) U.S. equity securities and international equity securities are comprised of investments in common stock of U.S. and non-U.S. companies for total return purposes. These investments are valued by the trustee at closing prices from national exchanges
on the valuation date.
(2) U.S. mutual and commingled funds are comprised of investments in funds that purchase publicly traded U.S. common stock for total return purposes. Investments are valued at unit values provided by the investment managers which are based
on the fair value of the underlying investments.
(3) Emerging market equity funds and developed market securities are comprised of investments in funds that purchase publicly traded common stock of non-U.S. companies for total return purposes. Funds are valued at unit values provided by the
investment managers which are based on the fair value of the underlying investments.
(4) Private equity partnerships are comprised of investments in limited partnerships that invest in private companies for total return purposes. The investments are valued at fair value which is generally based on the net asset value or capital balance as
reported by the partnerships subject to the review and approval of the investment managers and their consultants. As there is not a liquid market for some of these investments, realization of the estimated fair value of such investments is dependent
upon transactions between willing sellers and buyers.
(5) Private equity securities are comprised of investments in publicly traded common stock that were received as a distribution from a private equity partnership as well as equity investments in private companies for total return purposes. Stocks received
from private equity distributions are valued by the trustee at closing prices from national exchanges on the valuation date. Investments in private companies are valued by management based upon information provided by the respective third-party
investment manager who considers factors such as the cost of the investment, most recent round of financing, and expected future cash flows.
(6) Fixed-income securities are comprised of investments in government and corporate debt securities. These securities are valued by the trustee at closing prices from national exchanges or pricing vendors on the valuation date. Unlisted investments
are valued at prices quoted by various national markets, fixed-income pricing models and/or independent financial analysts.
(7) Energy and real estate securities are comprised of investments in publicly traded common stock of energy companies and real estate investment trusts for purposes of total return. These securities are valued by the trustee at closing prices from national
exchanges on the valuation date. Unlisted investments are valued at prices quoted by various national markets and publications and/or independent financial analysts.
(8) Real asset commingled funds are comprised of investments in funds that purchase publicly traded common stock of energy companies or real estate investment trusts for purposes of total return. These investments are valued at unit values provided
by the investment managers which are based on the fair value of the underlying investments.
(9) Real asset private funds are comprised of interests in limited partnerships that invest in private companies in the energy industry and private real estate properties for purposes of total return. These interests are valued at fair value which is generally
based on the net asset value or capital balance as reported by the partnerships subject to the review and approval of the investment managers and their consultants. As there is not a liquid market for some of these investments, realization of the
estimated fair value of such investments is dependent upon transactions between willing sellers and buyers.