Red Lobster 2014 Annual Report Download - page 44

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Notes to Consolidated Financial Statements
Darden
42 Darden Restaurants, Inc.
NOTE 14
LEASES
An analysis of rent expense incurred related to restaurants in continuing
operations is as follows:
Fiscal Year
(in millions)
2014 2013 2012
Restaurant minimum rent $146.4 $125.8 $100.6
Restaurant rent averaging expense 26.9 24.2 16.7
Restaurant percentage rent 6.6 6.0 4.9
Other 5.5 5.6 4.1
Total rent expense $185.4 $161.6 $126.3
Total rent expense included in discontinued operations was
$36.2 million, $34.6 million and $33.7 million for fiscal 2014, 2013 and
2012, respectively. These amounts include restaurant minimum rent of
$33.0 million, $31.8 million and $30.3 million for fiscal 2014, 2013 and
2012, 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 25, 2014 and thereafter is as follows:
(in millions)
Fiscal Year Capital Operating
2015 $ 5.6 $ 204.7
2016 5.7 192.9
2017 5.8 175.1
2018 6.0 155.4
2019 6.0 130.5
Thereafter 56.6 375.2
Total future lease commitments $ 85.7 $1,233.8
Less imputed interest (at 6.5%) (31.4)
Present value of future lease commitments $ 54.3
Less current maturities (2.3)
Obligations under capital leases,
net of current maturities $ 52.0
NOTE 15
INTEREST, NET
The components of interest, net are as follows:
Fiscal Year
(in millions)
2014 2013 2012
Interest expense $134.0 $126.2 $102.7
Imputed interest on capital leases 3.5 3.6 3.7
Capitalized interest (2.6) (2.9) (3.4)
Interest income (0.6) (0.9) (0.9)
Interest, net $134.3 $126.0 $102.1
Capitalized interest was computed using our average borrowing rate.
Interest paid, net of amounts capitalized was as follows:
Fiscal Year
(in millions)
2014 2013 2012
Interest paid, net of amounts capitalized $117.5 $112.6 $95.3
NOTE 16
INCOME TAXES
Total income tax expense was allocated as follows:
Fiscal Year
(in millions)
2014 2013 2012
Earnings from continuing operations $ (8.6) $ 36.7 $ 75.9
Earnings from discontinued operations 32.3 72.7 84.9
Total consolidated income tax expense $23.7 $109.4 $160.8
The components of earnings from continuing operations before income
taxes and the provision for income taxes thereon are as follows:
Fiscal Year
(in millions)
2014 2013 2012
Earnings from continuing operations
before income taxes:
U.S. $189.2 $278.0 $351.0
Foreign (14.6) (4.0) 4.1
Earnings from continuing operations
before income taxes $174.6 $274.0 $355.1
Income taxes:
Current:
Federal $ 39.5 $ 26.1 $ 25.5
State and local 5.4 7.9 11.6
Foreign 3.0 3.5 2.7
Total current $ 47.9 $ 37.5 $ 39.8
Deferred (principally U.S.):
Federal (43.7) 6.9 37.6
State and local (12.8) (7.7) (1.5)
Total deferred $ (56.5) $ (0.8) $ 36.1
Total income taxes $ (8.6) $ 36.7 $ 75.9
Income taxes paid were as follows:
Fiscal Year
(in millions)
2014 2013 2012
Income taxes paid $90.0 $98.5 $123.5