Red Lobster 2014 Annual Report Download - page 17

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Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Darden
2014 Annual Report 15
A summary of our contractual obligations and commercial commitments at May 25, 2014, is as follows:
Payments Due by Period
(in millions) Less Than 1-3 3-5 More Than
Contractual Obligations Total 1 Year Years Years 5 Years
Short-term debt $ 207.6 $ 207.6 $ – $ – $ –
Long-term debt (1) 3,697.0 133.8 361.2 922.1 2,279.9
Operating leases 1,233.8 204.7 368.0 285.9 375.2
Purchase obligations (2) 526.1 501.6 24.5 – –
Capital lease obligations (3) 85.7 5.6 11.5 12.0 56.6
Benefit obligations (4) 429.4 34.4 70.7 78.8 245.5
Unrecognized income tax benefits (5) 20.3 9.0 5.8 5.5 –
Total contractual obligations $6,199.9 $1,096.7 $841.7 $1,304.3 $2,957.2
Amount of Commitment Expiration per Period
(in millions)
Total Amounts Less Than 1-3 3-5 More Than
Other Commercial Commitments Committed 1 Year Years Years 5 Years
Standby letters of credit (6) $131.3 $131.3 $ – $ – $ –
Guarantees (7) 3.4 1.2 1.5 0.5 0.2
Total commercial commitments $134.7 $132.5 $1.5 $0.5 $0.2
(1) Includes interest payments associated with existing long-term debt, including the current portion. Variable-rate interest payments associated with the term loan were estimated based on an
average interest rate of 2.0 percent. Excludes issuance discount of $5.2 million.
(2) Includes commitments for food and beverage items and supplies, capital projects, information technology and other miscellaneous commitments.
(3) Includes total imputed interest of $31.4 million over the life of the capital lease obligations.
(4) Includes expected contributions associated with our defined benefit plans and payments associated with our postretirement benefit plan and our non-qualified deferred compensation plan through
fiscal 2024.
(5) Includes interest on unrecognized income tax benefits of $3.2 million, $2.7 million of which relates to contingencies expected to be resolved within one year.
(6) Includes letters of credit for $113.5 million of workers’ compensation and general liabilities accrued in our consolidated financial statements, letters of credit for $0.5 million of lease payments included
in the contractual operating lease obligation payments noted above and other letters of credit totaling $17.3 million.
(7) Consists solely of guarantees associated with leased properties that have been assigned to third parties. We are not aware of any non-performance under these arrangements that would result in our
having to perform in accordance with the terms of the guarantees.