Red Lobster 2016 Annual Report Download - page 47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DARDEN
DARDEN RESTAURANTS, INC. • 2016 ANNUAL REPORT 43
NOTE 12
ADDITIONAL FINANCIAL INFORMATION
The tables below provide additional financial information related to our
consolidated financial statements:
BALANCE SHEETS
(in millions) May 29, 2016 May 31, 2015
Receivables, net
Retail outlet gift card sales $ 43.9 $ 47.1
Landlord allowances due 3.7 12.9
Miscellaneous 16.9 18.9
Allowance for doubtful accounts (0.5) (0.9)
$ 64.0 $ 78.0
Other Current Liabilities
Non-qualified deferred compensation plan $194.0 $209.6
Sales and other taxes 58.7 63.9
Insurance-related 36.3 37.4
Employee benefits 35.8 34.3
Contingent proceeds – Red Lobster disposition — 31.5
Accrued interest 5.1 11.4
Miscellaneous 70.7 61.0
$400.6 $449.1
STATEMENTS OF EARNINGS
Fiscal Year
(in millions) 2016 2015 2014
Interest expense (1) $165.4 $186.2 $134.0
Imputed interest on capital
and financing leases 8.9 8.0 3.5
Capitalized interest (0.7) (1.3) (2.6)
Interest income (1.1) (0.6) (0.6)
Interest, net $172.5 $192.3 $134.3
(1) Interest expense in fiscal 2016 and 2015 includes approximately $106.8 million and
$91.3 million, respectively, of expenses associated with the retirement of long-term debt.
See Note 7.
STATEMENTS OF CASH FLOWS
Fiscal Year
(in millions) 2016 2015 2014
Cash paid during the fiscal year for:
Interest, net of amounts capitalized (1) $140.8 $142.8 $117.5
Income taxes, net of refunds (2) $128.0 $290.7 $ 90.0
Non-cash investing and financing activities:
Increase in land, buildings and equipment
through accrued purchases $ 14.9 $ 11.1 $ 24.4
Net book value of assets distributed
in Four Corners separation, net of
deferred tax liabilities $750.4 $ — $ —
(1) Interest paid in fiscal 2016 and 2015 includes approximately $68.7 million and $44.0
million, respectively, of payments associated with the retirement of long-term debt. See
Note 7.
(2) Income taxes paid in fiscal 2015 were higher primarily as a result of the gain recognized
on the sale of Red Lobster.
NOTE 13
INCOME TAXES
Total income tax expense was allocated as follows:
Fiscal Year
(in millions) 2016 2015 2014
Earnings from continuing operations $90.0 $ (21.1) $ (8.6)
Earnings from discontinued operations 3.4 344.8 32.3
Total consolidated income tax expense $93.4 $323.7 $23.7
The components of earnings from continuing operations before income
taxes and the provision for income taxes thereon are as follows:
Fiscal Year
(in millions) 2016 2015 2014
Earnings from continuing operations
before income taxes:
U.S. $450.6 $179.9 $189.0
Foreign (0.9) (4.6) (14.4)
Earnings from continuing operations
before income taxes $449.7 $175.3 $174.6
Income taxes:
Current:
Federal $ 89.1 $ (12.7) $ 39.5
State and local 2.7 (8.0) 5.4
Foreign 1.9 6.9 3.0
Total current $ 93.7 $ (13.8) $ 47.9
Deferred (principally U.S.):
Federal $ (2.4) $ — $ (43.7)
State and local (1.3) (7.3) (12.8)
Total deferred $ (3.7) $ (7.3) $ (56.5)
Total income taxes $ 90.0 $ (21.1) $ (8.6)
The following table is a reconciliation of the U.S. statutory income tax
rate to the effective income tax rate from continuing operations included in
the accompanying consolidated statements of earnings:
Fiscal Year
2016 2015 2014
U.S. statutory rate 35.0% 35.0% 35.0%
State and local income taxes,
net of federal tax benefits 1.2 (6.6) (2.7)
Benefit of federal income tax credits (12.5) (34.0) (30.3)
Other, net (3.7) (6.4) (6.9)
Effective income tax rate 20.0% (12.0)% (4.9)%
As of May 29, 2016, we had estimated current prepaid state income
taxes of $17.0 million and current prepaid federal income taxes of
$29.1 million, which are included on our accompanying consolidated
balance sheets as prepaid income taxes.