Red Lobster 2010 Annual Report Download - page 44

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Fiscal Year Ended
May 30, May 31, May 25,
(in millions) 2010 2009 2008
Cash฀flows฀–฀operating฀activities
Net earnings $ 404.5 $ 372.2 $ 377.2
Losses (earnings) from discontinued operations, net of tax benefit 2.5 (0.4) (7.7)
Adjustments to reconcile net earnings from continuing operations to cash flows:
Depreciation and amortization 300.9 283.1 245.7
Asset impairment charges, net 6.2฀ 12.0฀ –
Amortization of loan costs 3.3 3.3 2.3
Stock-based compensation expense 53.5 41.5 48.9
Change in current assets and liabilities 153.3 (69.4) 53.7
Contribution to postretirement plan (0.6) (1.2) (1.2)
Loss on disposal of land, buildings and equipment 0.3 1.1 2.2
Change in cash surrender value of trust-owned life insurance (7.7) 17.1 4.6
Deferred income taxes (10.2) 89.5 31.1
Change in deferred rent 15.4 16.1 12.8
Change in other liabilities (23.4) 11.3 (17.0)
Income tax benefits from exercise of stock-based compensation credited to goodwill 1.4 0.9 8.0
Other, net 4.0 6.4 6.2
Net cash provided by operating activities of continuing operations $ 903.4 $ 783.5 $ 766.8
Cash฀flows฀–฀investing฀activities
Purchases of land, buildings and equipment (432.1) (535.3) (429.2)
Proceeds from disposal of land, buildings and equipment 12.5 4.6 5.9
Purchases of marketable securities (15.5)฀ (42.0)฀ –
Proceeds from sale of marketable securities 12.8 13.9 8.2
Cash used in business combination, net of cash acquired –฀ –฀ (1,198.1)
Increase in other assets (6.4) (3.6) (2.5)
Net cash used in investing activities of continuing operations $(428.7) $(562.4) $(1,615.7)
Cash฀flows฀–฀financing฀activities
Proceeds from issuance of common stock 66.3 57.5 66.8
Income tax benefits credited to equity 20.1 22.2 23.5
Dividends paid (140.0) (110.2) (100.9)
Purchases of treasury stock (85.1) (144.9) (159.4)
ESOP note receivable repayments 1.8 3.9 3.6
Proceeds from Interim Credit Agreement –฀ –฀ 1,150.0
Repayment of Interim Credit Agreement –฀ –฀ (1,150.0)
Repayment of short-term debt, net (150.0) (28.4) (33.0)
Proceeds from issuance of long-term debt –฀ –฀ 1,150.0
Payments of debt issuance costs –฀ –฀ (16.0)
Repayment of long-term debt (1.8) (3.9) (3.6)
Repayment of acquired convertible notes –฀ –฀ (125.0)
Principal payments on capital leases (1.3) (1.0) (0.5)
Net cash (used in) provided by financing activities of continuing operations $(290.0) $(204.8) $ 805.5
Cash฀flows฀–฀discontinued฀operations
Net cash used in operating activities of discontinued operations (1.4) (1.1) (32.6)
Net cash provided by investing activities of discontinued operations 2.6 4.5 89.0
Net cash provided by discontinued operations $ 1.2 $ 3.4 $ 56.4
Increase in cash and cash equivalents 185.9 19.7 13.0
Cash฀and฀cash฀equivalents฀–฀beginning฀of฀year฀ 62.9 43.2 30.2
Cash฀and฀cash฀equivalents฀–฀end฀of฀year฀ $ 248.8 $ 62.9 $ 43.2
Cash flows from changes in current assets and liabilities
Receivables (16.1) 32.4 (1.5)
Inventories 26.2 (30.2) 9.5
Prepaid expenses and other current assets (6.8) 0.5 (2.6)
Accounts payable 27.6 (25.2) 38.6
Accrued payroll 23.6฀ 8.8฀ –
Prepaid/accrued income taxes 52.7 (55.9) (30.6)
Other accrued taxes 1.8 4.9 2.1
Unearned revenues 28.7 (16.3) 2.8
Other current liabilities 15.6 11.6 35.4
Change in current assets and liabilities $ 153.3 $ (69.4) $ 53.7
See accompanying notes to consolidated financial statements.
42 DARDEN RESTAURANTS, INC. | 2010 ANNUAL REPORT
Consolidated Statements of Cash Flows
Darden