Red Lobster 2016 Annual Report Download - page 41

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DARDEN
DARDEN RESTAURANTS, INC. • 2016 ANNUAL REPORT 37
Our management uses segment profit as the measure for assessing performance of our segments. Segment profit includes revenues and expenses
directly attributable to restaurant-level results of operations (sometimes referred to as restaurant-level earnings). These expenses include food and beverage
costs, restaurant labor costs, restaurant expenses and marketing expenses (collectively “restaurant and marketing expenses”). The following tables reconcile
our segment results to our consolidated results reported in accordance with GAAP:
(in millions)
Olive LongHorn
At May 29, 2016 and for the year ended Garden Steakhouse Fine Dining Other Business Corporate Consolidated
Sales $3,838.6 $1,587.7 $514.1 $ 993.1 $ — $6,933.5
Restaurant and marketing expenses 3,079.4 1,312.4 413.6 825.0 — 5,630.4
Segment profit $ 759.2 $ 275.3 $100.5 $ 168.1 $ — $1,303.1
Depreciation and amortization $ 124.1 $ 67.9 $ 27.1 $ 50.5 $ 20.6 $ 290.2
Impairments and disposal of assets, net (1.4) (1.5) 0.7 6.0 2.0 5.8
Segment assets 939.2 969.2 857.0 987.6 829.6 4,582.6
Purchases of land, buildings and equipment 95.6 46.9 21.4 60.5 3.9 228.3
(in millions)
Olive LongHorn
At May 31, 2015 and for the year ended Garden Steakhouse Fine Dining Other Business Corporate Consolidated
Sales $3,789.6 $1,544.7 $500.1 $ 929.6 $ — $6,764.0
Restaurant and marketing expenses 3,089.1 1,304.8 405.2 785.7 — 5,584.8
Segment profit $ 700.5 $ 239.9 $ 94.9 $ 143.9 $ — $1,179.2
Depreciation and amortization $ 149.8 $ 71.6 $ 26.4 $ 47.3 $ 24.2 $ 319.3
Impairments and disposal of assets, net 28.2 0.4 — 21.0 12.5 62.1
Segment assets 1,625.1 1,261.1 865.6 1,054.6 1,188.3 5,994.7
Purchases of land, buildings and equipment 118.9 67.4 22.9 83.4 3.9 296.5
(in millions)
Olive LongHorn
For the year ended May 25, 2014 Garden Steakhouse Fine Dining Other Business Corporate Consolidated
Sales $3,643.1 $1,383.9 $441.6 $ 817.0 $ — $6,285.6
Restaurant and marketing expenses 2,995.1 1,179.6 360.2 707.9 — 5,242.8
Segment profit $ 648.0 $ 204.3 $ 81.4 $ 109.1 $ — $1,042.8
Depreciation and amortization $ 149.6 $ 66.7 $ 24.3 $ 42.7 $ 21.1 $ 304.4
Impairments and disposal of assets, net 3.3 0.8 4.8 3.7 3.8 16.4
Purchases of land, buildings and equipment 131.9 114.4 42.3 123.1 3.1 414.8
Reconciliation of segment profit to earnings from continuing operations before income taxes:
Fiscal Year Ended
(in millions)
May 29, 2016 May 31, 2015 May 25, 2014
Segment profit $1,303.1 $1,179.2 $1,042.8
Less general and administrative expenses (384.9) (430.2) (413.1)
Less depreciation and amortization (290.2) (319.3) (304.4)
Less impairments and disposal of assets, net (5.8) (62.1) (16.4)
Less interest, net (172.5) (192.3) (134.3)
Earnings before income taxes $ 449.7 $ 175.3 $ 174.6