Red Lobster 2013 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2013 Red Lobster annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 74

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74

Notes to Consolidated Financial Statements
Darden
Darden Restaurants, Inc. 2013 Annual Report 53
In the second quarter of fiscal 2013, we retired a portion of our treasury stock totaling 159.3 million shares and restored them to authorized but unissued shares of
common stock. The retired treasury stock had a carrying amount of approximately $3.74 billion. Upon formal retirement and in accordance with FASB ASC Topic 505,
Equity, we reduced our common stock and surplus account based on the estimated weighted-average cost of the common shares and reduced our treasury stock
account based on the repurchase price. The difference between the repurchase price and the estimated average cost was recorded as a reduction to retained earnings.
The remaining shares will be utilized to satisfy future issuances under certain of our employee stock compensation programs. We expect that all shares of common stock
acquired in the future will be restored to authorized but unissued shares of common stock.
STOCKHOLDERS’ RIGHTS PLAN
Under our Rights Agreement dated May 16, 2005, each share of our common stock has associated with it one right to purchase one thousandth of a share of our Series A
Participating Cumulative Preferred Stock at a purchase price of $120 per share, subject to adjustment under certain circumstances to prevent dilution. The rights are
exercisable when, and are not transferable apart from our common stock until, a person or group has acquired 15 percent or more, or makes a tender offer for 15 percent
or more, of our common stock. If the specified percentage of our common stock is then acquired, each right will entitle the holder (other than the acquiring company) to
receive, upon exercise, common stock of either us or the acquiring company having a value equal to two times the exercise price of the right. The rights are redeemable
by our Board of Directors under certain circumstances and expire on May 25, 2015.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of accumulated other comprehensive income (loss), net of tax, are as follows:
Foreign Currency Unrealized Gains (Losses) Unrealized Gains (Losses) Benefit Plan Accumulated Other
(in millions)
Translation Adjustment on Marketable Securities on Derivatives Funding Position Comprehensive Income (Loss)
Balances at May 29, 2011 $(0.4) $ 0.5 $ (4.1) $(55.8) $ (59.8)
Gain (loss) (1.2) (0.1) (47.9) (45.6) (94.8)
Reclassificationrealizedinnetearnings – – 2.3 5.7 8.0
Balances at May 27, 2012 $(1.6) $ 0.4 $(49.7) $(95.7) $(146.6)
Gain (loss) (0.2) (0.2) (8.8) 11.4 2.2
Reclassification realized in net earnings – – 4.7 6.9 11.6
Balances at May 26, 2013 $(1.8) $ 0.2 $(53.8) $(77.4) $(132.8)