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DARDEN RESTAURANTS, INC. | 2015 ANNUAL REPORT 43
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DARDEN
The notional and fair values of our derivative contracts are as follows:
Notional Values Derivative Assets Derivative Liabilities
Balance
May 31, May 25, Sheet May 31, May 25, May 31, May 25,
(in millions)
2015 2014 Location 2015 2014 2015 2014
Derivative contracts designated as hedging instruments
Commodity contracts $ — $ 0.9 (1) $ — $ — $ — $ —
Equity forwards 11.4 20.6 (1) 0.4 — — (0.5)
Interest rate related 200.0 200.0 (1) 3.6 1.6 — —
Foreign currency forwards — 0.3 (1) — 0.1 — —
$4.0 $1.7 $ — $(0.5)
Derivative contracts not designated as hedging instruments
Commodity contracts $ — $ — (1) $ — $ — $ — $ —
Equity forwards 51.7 47.4 (1) 1.3 — — (1.2)
$1.3 $ — $ — $(1.2)
Total derivative contracts $5.3 $1.7 $ — $(1.7)
(1) Derivative assets and liabilities are included in receivables, net, prepaid expenses and other current assets, and other current liabilities, as applicable, on our consolidated balance sheets.
The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows:
Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss)
Recognized in AOCI Reclassified from AOCI Reclassified from AOCI Recognized in Earnings Recognized in Earnings
(in millions)
(Effective Portion) to Earnings to Earnings (Effective Portion) (Ineffective Portion) (Ineffective Portion) (1)
Fiscal Year Fiscal Year Fiscal Year
2015 2014 2013 2015 2014 2013 2015 2014 2013
Commodity $ — $ 0.6 $ 0.7 (2) $ — $ 0.4 $ 0.4 (2) $ — $ — $ —
Equity 2.1 (3.5) (2.8) (3) (1.0) (0.8) 0.2 (3) 1.1 1.4 1.1
Interest rate — — (10.1) Interest, net (45.7) (10.3) (8.3) Interest, net —— —
Foreign currency — 0.5 (0.5) (4) — 1.0 — (4) —— —
$2.1 $(2.4) $(12.7) $(46.7) $ (9.7) $(7.7) $1.1 $1.4 $1.1
(1) Generally, all of our derivative instruments designated as cash flow hedges have some level of ineffectiveness, which is recognized currently in earnings. However, as these amounts
are generally nominal and our consolidated financial statements are presented “in millions,” these amounts may appear as zero in this tabular presentation.
(2) Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs and
restaurant expenses.
(3) Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is restaurant labor expenses and
general and administrative expenses.
(4) Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs and
general and administrative expenses.
Fair Values