Red Lobster 2015 Annual Report Download - page 44

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40
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DARDEN
NOTE 7
WORKFORCE REDUCTION
During fiscal 2014 and 2015, we performed reviews of our operations and support structure resulting in changes in our growth plans and related support structure
needs. As a result, we had workforce reductions and program spending cuts in September 2013 (September 2013 Plan), January 2014 (January 2014 Plan),
May 2014 (May 2014 Plan), November 2014 (November 2014 Plan) and May 2015 (May 2015 Plan). In accordance with these actions, we incurred employee
termination benefits costs and other costs which are included in general and administrative expenses in our consolidated statements of earnings as follows:
Fiscal Year
(in millions)
2015 2014
Employee termination benefits (1) $37.4 $17.2
Other (2) 0.5 0.9
Total $37.9 $18.1
(1) Includes salary and stock-based compensation expense.
(2) Includes postemployment medical, outplacement and relocation costs.
The following table summarizes the accrued employee termination benefits and other costs which are primarily included in other current liabilities on our
consolidated balance sheet as of May 31, 2015:
September January May November May Balance at
(in millions)
2013 Plan 2014 Plan 2014 Plan 2014 Plan 2015 Plan Payments Adjustments May 31, 2015
Employee termination benefits (1) $7.7 $0.7 $5.0 $17.2 $7.0 $(23.4) $ 0.7 $14.9
Other 0.8 0.1 0.2 0.4 0.2 (1.1) (0.2) 0.4
Total $8.5 $0.8 $5.2 $17.6 $7.2 $(24.5) $ 0.5 $15.3
(1) Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting.
We expect the remaining liability to be paid by the second quarter of fiscal 2017.
NOTE 8
OTHER CURRENT LIABILITIES
The components of other current liabilities are as follows:
May 31, May 25,
(in millions)
2015 2014
Non-qualified deferred compensation plan $209.6 $228.8
Sales and other taxes 63.9 70.4
Insurance-related 37.4 35.8
Employee benefits 34.3 47.4
Contingent proceeds – Red Lobster disposition 31.5 —
Derivative liabilities — 1.7
Accrued interest 11.4 19.9
Miscellaneous 61.0 53.4
Total other current liabilities $449.1 $457.4
NOTE 9
DEBT
The components of long-term debt are as follows:
May 31, May 25,
(in millions)
2015 2014
7.125% debentures due February 2016 $ — $ 100.0
Variable-rate term loan (1.68% at May 31, 2015)
due August 2017 285.0 300.0
6.200% senior notes due October 2017 500.0 500.0
3.790% senior notes due August 2019 — 80.0
4.500% senior notes due October 2021 121.9 400.0
3.350% senior notes due November 2022 111.1 450.0
4.520% senior notes due August 2024 10.0 220.0
6.000% senior notes due August 2035 150.0 150.0
6.800% senior notes due October 2037 300.0 300.0
Total long-term debt $1,478.0 $2,500.0
Fair value hedge 3.6 1.6
Less unamortized discount and issuance costs (14.3) (23.2)
Total long-term debt less unamortized
discount and issuance costs $1,467.3 $2,478.4
Less current portion (15.0) (15.0)
Long-term debt, excluding current portion $1,452.3 $2,463.4