Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Feb. 23, 2014 | Mar. 14, 2014 | |
Document And Entity Information Abstract | ' | ' |
Entity Registrant Name | 'DARDEN RESTAURANTS INC | ' |
Entity Central Index Key | '0000940944 | ' |
Current Fiscal Year End Date | '--05-25 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 23-Feb-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 131,929,773 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $2,233.10 | $2,258.20 | $6,441.50 | $6,253 |
Cost of sales: | ' | ' | ' | ' |
Food and beverage | 697.2 | 695.1 | 1,999 | 1,921.50 |
Restaurant labor | 702.9 | 709 | 2,069.80 | 1,971.50 |
Restaurant expenses | 360.8 | 348.2 | 1,063.50 | 977.8 |
Total cost of sales, excluding restaurant depreciation and amortization of $103.0, $95.8, $305.6 and $277.2, respectively | 1,760.90 | 1,752.30 | 5,132.30 | 4,870.80 |
Selling, general and administrative | 209.3 | 199.8 | 660.5 | 634.1 |
Depreciation and amortization | 108.5 | 101 | 321.9 | 292.8 |
Interest, net | 33.1 | 31.9 | 98.7 | 92.7 |
Total costs and expenses | 2,111.80 | 2,085 | 6,213.40 | 5,890.40 |
Earnings before income taxes | 121.3 | 173.2 | 228.1 | 362.6 |
Income taxes | 11.8 | 38.7 | 28.5 | 83.3 |
Earnings from continuing operations | 109.5 | 134.5 | 199.6 | 279.3 |
Earnings (losses) from discontinued operations, net of tax expense (benefit) of $0.1, $(0.2), $0.0 and $(0.4), respectively | 0.2 | -0.1 | 0.1 | -0.5 |
Net earnings | $109.70 | $134.40 | $199.70 | $278.80 |
Basic net earnings per share: | ' | ' | ' | ' |
Earnings from continuing operations (in dollars per share) | $0.83 | $1.04 | $1.53 | $2.17 |
Earning (losses) from discontinued operations (in dollars per share) | $0.01 | $0 | $0 | $0 |
Net earnings (in dollars per share) | $0.84 | $1.04 | $1.53 | $2.17 |
Diluted net earnings per share: | ' | ' | ' | ' |
Earnings from continuing operations (in dollars per share) | $0.82 | $1.02 | $1.50 | $2.13 |
Earning (losses) from discontinued operations (in dollars per share) | $0 | $0 | $0 | ($0.01) |
Net earnings (in dollars per share) | $0.82 | $1.02 | $1.50 | $2.12 |
Average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 131.3 | 129.3 | 130.7 | 128.7 |
Diluted (in shares) | 133.4 | 131.5 | 132.9 | 131.4 |
Dividends declared per common share (in dollars per share) | $0.55 | $0.50 | $1.65 | $1.50 |
Consolidated_Statements_Of_Ear1
Consolidated Statements Of Earnings (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Total cost of sales, restaurant depreciation and amortization | $103 | $95.80 | $305.60 | $277.20 |
Earnings (losses) from discontinued operations, tax expense (benefit) | $0.10 | ($0.20) | $0 | ($0.40) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $109.70 | $134.40 | $199.70 | $278.80 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency adjustment | -1.7 | -0.6 | -3.6 | 0.1 |
Change in fair value of marketable securities, net of tax benefit of $0.0, $0.0, $0.1 and $0.1, respectively | 0 | 0 | -0.1 | -0.1 |
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of tax expense (benefit) of $1.3, $1.0, $3.4 and $(1.6), respectively | 0 | -3.7 | 3.7 | -8.9 |
Amortization of unrecognized net actuarial loss, net of tax expense of $1.0, $1.1, $3.0 and $3.2, respectively | 1.6 | 1.7 | 4.8 | 5.2 |
Other comprehensive income (loss) | -0.1 | -2.6 | 4.8 | -3.7 |
Total comprehensive income | $109.60 | $131.80 | $204.50 | $275.10 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Change in fair value of marketable securities, tax | $0 | $0 | $0.10 | $0.10 |
Change in fair value of derivatives, tax | 1.3 | 1 | 3.4 | -1.6 |
Net unamortized gain arising during period, including amortization of unrecognized net actuarial loss, tax | $1 | $1.10 | $3 | $3.20 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 23, 2014 | 26-May-13 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $127 | $88.20 |
Receivables, net | 69 | 85.4 |
Inventories | 461 | 356.9 |
Prepaid income taxes | 11.7 | 6.4 |
Prepaid expenses and other current assets | 75.4 | 83.4 |
Deferred income taxes | 165.1 | 144.6 |
Total current assets | 909.2 | 764.9 |
Land, buildings and equipment, net of accumulated depreciation and amortization of $3,257.5 and $3,049.8, respectively | 4,512.20 | 4,391.10 |
Goodwill | 907.6 | 908.3 |
Trademarks | 574.6 | 573.8 |
Other assets | 321.2 | 298.8 |
Total assets | 7,224.80 | 6,936.90 |
Current liabilities: | ' | ' |
Accounts payable | 358.3 | 296.5 |
Short-term debt | 181.5 | 164.5 |
Accrued payroll | 149.9 | 150.5 |
Accrued income taxes | 14.5 | 16.5 |
Other accrued taxes | 63.8 | 67.6 |
Unearned revenues | 347.4 | 270.5 |
Current portion of long-term debt | 15 | 0 |
Other current liabilities | 511.1 | 450.3 |
Total current liabilities | 1,641.50 | 1,416.40 |
Long-term debt, less current portion | 2,481 | 2,496.20 |
Deferred income taxes | 344.2 | 356.4 |
Deferred rent | 253.3 | 230.5 |
Obligations under capital leases, net of current installments | 52.6 | 52.5 |
Other liabilities | 330.5 | 325.4 |
Total liabilities | 5,103.10 | 4,877.40 |
Stockholders’ equity: | ' | ' |
Common stock and surplus | 1,280.90 | 1,207.60 |
Retained earnings | 982 | 998.9 |
Treasury stock | -7.8 | -8.1 |
Accumulated other comprehensive income (loss) | -128 | -132.8 |
Unearned compensation | -5.4 | -6.1 |
Total stockholders’ equity | 2,121.70 | 2,059.50 |
Total liabilities and stockholders’ equity | $7,224.80 | $6,936.90 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 23, 2014 | 26-May-13 |
In Millions, unless otherwise specified | ||
Land, buildings, and equipment, accumulated depreciation and amortization | $3,257.50 | $3,049.80 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Stockholders' Equity (USD $) | Total | Common Stock And Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation |
In Millions, unless otherwise specified | ||||||
Balances at May. 27, 2012 | $1,842 | $2,518.80 | $3,172.80 | ($3,695.80) | ($146.60) | ($7.20) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net earnings | 278.8 | ' | 278.8 | ' | ' | ' |
Other comprehensive income (loss) | -3.7 | ' | ' | ' | -3.7 | ' |
Dividends declared | -194.1 | 0.4 | -194.5 | ' | ' | ' |
Stock option exercises (2014: 1.4 shares and 2013: 1.5 shares) | 43.9 | 42.5 | ' | 1.4 | ' | ' |
Stock-based compensation | 19 | 19 | ' | ' | ' | ' |
ESOP note receivable repayments | 0.9 | ' | ' | ' | ' | 0.9 |
Income tax benefits credited to equity | 10.4 | 10.4 | ' | ' | ' | ' |
Repurchases of common stock (1.0 shares) | -52.4 | ' | -0.1 | -52.3 | ' | ' |
Issuance of treasury stock under Employee Stock Purchase Plan and other plans (0.2 shares) | 5.5 | 4.8 | ' | 0.7 | ' | ' |
Treasury shares retirement (159.3 shares) | 0 | -1,411.40 | -2,326.10 | 3,737.50 | 0 | 0 |
Balances at Feb. 24, 2013 | 1,950.30 | 1,184.50 | 930.9 | -8.5 | -150.3 | -6.3 |
Balances at May. 26, 2013 | 2,059.50 | 1,207.60 | 998.9 | -8.1 | -132.8 | -6.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net earnings | 199.7 | ' | 199.7 | ' | ' | ' |
Other comprehensive income (loss) | 4.8 | ' | ' | ' | 4.8 | ' |
Dividends declared | -216.2 | ' | -216.2 | ' | ' | ' |
Stock option exercises (2014: 1.4 shares and 2013: 1.5 shares) | 38.4 | 38.1 | ' | 0.3 | ' | ' |
Stock-based compensation | 20.4 | 20.4 | ' | ' | ' | ' |
ESOP note receivable repayments | 0.7 | ' | ' | ' | ' | 0.7 |
Income tax benefits credited to equity | 9.5 | 9.5 | ' | ' | ' | ' |
Repurchases of common stock (0.0 shares) | -0.5 | -0.1 | -0.4 | ' | ' | ' |
Issuance of treasury stock under Employee Stock Purchase Plan and other plans (0.2 shares) | 5.4 | 5.4 | ' | ' | ' | ' |
Balances at Feb. 23, 2014 | $2,121.70 | $1,280.90 | $982 | ($7.80) | ($128) | ($5.40) |
Consolidated_Statements_Of_Cha1
Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) (Parenthetical) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 |
Stock option exercised, shares | 1.4 | 1.5 |
Repurchases of common stock, shares | 0 | ' |
Repurchases of common stock, shares | ' | 1 |
Issuance of treasury stock under Employee Stock Purchase Plan and other plans, shares | 0.1 | 0.2 |
Treasury share retirement, shares | 0 | 159.3 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 |
Cash flows—operating activities | ' | ' |
Net earnings | $199.70 | $278.80 |
(Earnings) losses from discontinued operations, net of tax benefit | -0.1 | 0.5 |
Adjustments to reconcile net earnings from continuing operations to cash flows: | ' | ' |
Depreciation and amortization | 321.9 | 292.8 |
Asset impairment charges | 1.4 | 0.8 |
Amortization of loan costs and losses on interest-rate related derivatives | 10.3 | 9.3 |
Stock-based compensation expense | 39.5 | 36 |
Change in current assets and liabilities | 88 | 46.6 |
Contributions to pension and postretirement plans | -0.9 | -2.8 |
Loss on disposal of land, buildings and equipment | 6.9 | 6.1 |
Change in cash surrender value of trust-owned life insurance | -10.7 | -11.5 |
Deferred income taxes | -29.3 | 14.3 |
Change in deferred rent | 23.2 | 19.5 |
Change in other assets and liabilities | 13.6 | -6.7 |
Income tax benefits from exercise of stock-based compensation credited to goodwill | 0.1 | 0.1 |
Other, net | 3.4 | 6.2 |
Net cash provided by operating activities of continuing operations | 667 | 690 |
Cash flows—investing activities | ' | ' |
Purchases of land, buildings and equipment | -468.3 | -518.5 |
Proceeds from disposal of land, buildings and equipment | 3.2 | 0 |
Purchases of marketable securities | -3 | -7.6 |
Proceeds from sale of marketable securities | 8.7 | 16.4 |
Cash used in business acquisitions, net of cash acquired | 0 | -577.4 |
Increase in other assets | -21.6 | -31.8 |
Net cash used in investing activities of continuing operations | -481 | -1,118.90 |
Cash flows—financing activities | ' | ' |
Proceeds from issuance of common stock | 43.8 | 49.4 |
Income tax benefits credited to equity | 9.5 | 10.4 |
Dividends paid | -215.7 | -193.2 |
Repurchases of common stock | -0.5 | -52.4 |
ESOP note receivable repayment | 0.7 | 0.9 |
Proceeds from issuance of short-term debt | 1,832.80 | 2,184.90 |
Repayments of short-term debt | -1,815.80 | -2,230.60 |
Repayment of long-term debt | 0 | -350.9 |
Proceeds from issuance of long-term debt | 0 | 1,050 |
Payment of debt issuance costs | -1.4 | -7.4 |
Principal payments on capital leases | -1.5 | -1.2 |
Net cash (used in) provided by financing activities of continuing operations | -148.1 | 459.9 |
Cash flows—discontinued operations | ' | ' |
Net cash used in operating activities of discontinued operations | -0.3 | -0.3 |
Net cash provided by investing activities of discontinued operations | 1.2 | 2.7 |
Net cash provided by discontinued operations | 0.9 | 2.4 |
Increase in cash and cash equivalents | 38.8 | 33.4 |
Cash and cash equivalents - beginning of period | 88.2 | 70.5 |
Cash and cash equivalents - end of period | 127 | 103.9 |
Cash flows from changes in current assets and liabilities | ' | ' |
Receivables, net | 15.7 | 3.9 |
Inventories | -104.1 | -25.1 |
Prepaid expenses and other current assets | 6.9 | -8.6 |
Accounts payable | 86.7 | 35.5 |
Accrued payroll | -0.6 | -24.2 |
Prepaid/accrued income taxes | -7.3 | 12.7 |
Other accrued taxes | -3.8 | 8.5 |
Unearned revenues | 76.9 | 81.3 |
Other current liabilities | 17.6 | -37.4 |
Change in current assets and liabilities | $88 | $46.60 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Feb. 23, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Darden Restaurants, Inc. (we, our or the Company) owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden®, Red Lobster®, LongHorn Steakhouse®, The Capital Grille®, Yard House®, Bahama Breeze®, Seasons 52®, Eddie V's Prime Seafood® and Wildfish Seafood Grille®. We have prepared these consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature. Operating results for the quarter ended February 23, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending May 25, 2014. | |
These statements should be read in conjunction with the consolidated financial statements and related notes to consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 26, 2013. The accounting policies used in preparing these consolidated financial statements are the same as those described in our Form 10-K. | |
We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and costs and expenses during the reporting period. Actual results could differ from those estimates. | |
Red Lobster Separation | |
On December 19, 2013, we announced a comprehensive plan to enhance shareholder value that will include separating the Red Lobster business. Although a final decision has not been made on the form of the separation, we expect to execute a tax-free spin-off of Red Lobster to our shareholders, but we may also consider a sale of the Red Lobster business. The completion of the spin-off will be subject to certain customary conditions, including final approval by our Board of Directors, confirmation of the tax-free nature of the transaction, and the effectiveness of a registration statement filed with the SEC. We expect the separation transaction to close in early fiscal 2015. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Feb. 23, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Supplemental Cash Flow Information | ' | ||||||||
Supplemental Cash Flow Information | |||||||||
Nine Months Ended | |||||||||
(in millions) | February 23, 2014 | February 24, 2013 | |||||||
Interest paid, net of amounts capitalized | $ | 65.9 | $ | 61.7 | |||||
Income taxes paid, net of refunds | 63.5 | 67.5 | |||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
We grant stock options for a fixed number of shares to certain employees and directors with an exercise price equal to the fair value of the shares at the date of grant. We also grant restricted stock, restricted stock units, and performance stock units with a fair value determined based on our closing stock price on the date of grant. In addition, we also grant cash settled stock units (Darden Stock Units) and cash settled performance stock units, which are classified as liabilities and are marked to market as of the end of each period. The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes option pricing model were as follows: | |||||||||||||||||
Stock Options Granted | |||||||||||||||||
During the Nine Months Ended | |||||||||||||||||
February 23, 2014 | February 24, 2013 | ||||||||||||||||
Weighted-average fair value | $ | 12.05 | $ | 12.22 | |||||||||||||
Dividend yield | 4.4 | % | 4 | % | |||||||||||||
Expected volatility of stock | 39.6 | % | 39.7 | % | |||||||||||||
Risk-free interest rate | 1.9 | % | 0.8 | % | |||||||||||||
Expected option life (in years) | 6.4 | 6.5 | |||||||||||||||
The following table presents a summary of our stock-based compensation activity for the nine months ended February 23, 2014: | |||||||||||||||||
(in millions) | Stock | Restricted | Darden | Performance | |||||||||||||
Options | Stock/ | Stock | Stock Units | ||||||||||||||
Restricted | Units | ||||||||||||||||
Stock | |||||||||||||||||
Units | |||||||||||||||||
Outstanding beginning of period | 11.6 | 0.2 | 2.2 | 0.9 | |||||||||||||
Awards granted | 1.7 | 0.1 | 0.6 | 0.3 | |||||||||||||
Awards exercised | (1.4 | ) | (0.1 | ) | (0.4 | ) | (0.2 | ) | |||||||||
Awards forfeited | (0.3 | ) | — | (0.2 | ) | (0.2 | ) | ||||||||||
Outstanding end of period | 11.6 | 0.2 | 2.2 | 0.8 | |||||||||||||
We recognized expense from stock-based compensation as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options (1) | $ | 4 | $ | 4.7 | $ | 16.5 | $ | 14.2 | |||||||||
Restricted stock/restricted stock units | (0.1 | ) | 0.7 | 0.8 | 2.1 | ||||||||||||
Darden stock units | 3.6 | 1.7 | 14.6 | 12.2 | |||||||||||||
Performance stock units | 0.2 | (0.4 | ) | 4.5 | 4.8 | ||||||||||||
Employee stock purchase plan | 0.5 | 0.5 | 1.4 | 1.4 | |||||||||||||
Director compensation program/other | — | 0.1 | 1.7 | 1.3 | |||||||||||||
Total stock-based compensation expense | $ | 8.2 | $ | 7.3 | $ | 39.5 | $ | 36 | |||||||||
-1 | The increase for the nine months ended February 23, 2014 is primarily attributable to the workforce reduction efforts further discussed in Note 11. |
Income_Taxes
Income Taxes | 9 Months Ended |
Feb. 23, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The effective income tax rate for the quarter and nine months ended February 23, 2014 was 9.7 percent and 12.5 percent, respectively, compared to an effective income tax rate of 22.3 percent and 23.0 percent for the quarter and nine months ended February 24, 2013, respectively. The decrease in the effective income tax rate for the quarter and nine months ended February 23, 2014 as compared to the quarter and nine months ended February 24, 2013 is primarily attributable to an increase in the impact of FICA tax credits for employee reported tips and Work Opportunity Tax Credits on lower earnings before income taxes and a favorable adjustment related to the deduction for employee stock ownership plan dividends for the current and prior years. | |
Included in our remaining balance of unrecognized tax benefits is $23.9 million related to tax positions for which it is reasonably possible that the total amounts could change within the next twelve months based on the outcome of examinations or as a result of the expiration of the statute of limitations for specific jurisdictions. |
Net_Earnings_per_Share
Net Earnings per Share | 9 Months Ended | ||||||||||||
Feb. 23, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Earnings per Share | ' | ||||||||||||
Net Earnings per Share | |||||||||||||
Outstanding stock options and restricted stock granted by us represent the only dilutive effect reflected in diluted weighted average shares outstanding. Stock options and restricted stock do not impact the numerator of the diluted net earnings per share computation. Stock options and restricted stock excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Anti-dilutive stock options and restricted stock | 4.5 | 3.1 | 4.1 | 2.7 | |||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||||||
Feb. 23, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, for the quarters ended February 23, 2014 and February 24, 2013 are as follows: | ||||||||||||||||||||
(in millions) | Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Unrealized Gains (Losses) on Derivatives | Benefit Plan Funding Position | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at November 24, 2013 | $ | (3.7 | ) | $ | 0.1 | $ | (50.1 | ) | $ | (74.2 | ) | $ | (127.9 | ) | ||||||
Gain (loss) | (1.7 | ) | — | (1.1 | ) | — | (2.8 | ) | ||||||||||||
Reclassification realized in net earnings | — | — | 1.1 | 1.6 | 2.7 | |||||||||||||||
Balance at February 23, 2014 | $ | (5.4 | ) | $ | 0.1 | $ | (50.1 | ) | $ | (72.6 | ) | $ | (128.0 | ) | ||||||
Balances at November 25, 2012 | $ | (0.9 | ) | $ | 0.3 | $ | (54.9 | ) | $ | (92.2 | ) | $ | (147.7 | ) | ||||||
Gain (loss) | (0.6 | ) | — | (5.2 | ) | — | (5.8 | ) | ||||||||||||
Reclassification realized in net earnings | — | — | 1.5 | 1.7 | 3.2 | |||||||||||||||
Balance at February 24, 2013 | $ | (1.5 | ) | $ | 0.3 | $ | (58.6 | ) | $ | (90.5 | ) | $ | (150.3 | ) | ||||||
The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended February 23, 2014 and February 24, 2013 are as follows: | ||||||||||||||||||||
(in millions) | Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Unrealized Gains (Losses) on Derivatives | Benefit Plan Funding Position | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balances at May 26, 2013 | $ | (1.8 | ) | $ | 0.2 | $ | (53.8 | ) | $ | (77.4 | ) | $ | (132.8 | ) | ||||||
Gain (loss) | (3.6 | ) | (0.1 | ) | (1.6 | ) | — | (5.3 | ) | |||||||||||
Reclassification realized in net earnings | — | — | 5.3 | 4.8 | 10.1 | |||||||||||||||
Balance at February 23, 2014 | $ | (5.4 | ) | $ | 0.1 | $ | (50.1 | ) | $ | (72.6 | ) | $ | (128.0 | ) | ||||||
Balances at May 27, 2012 | $ | (1.6 | ) | $ | 0.4 | $ | (49.7 | ) | $ | (95.7 | ) | $ | (146.6 | ) | ||||||
Gain (loss) | 0.1 | (0.1 | ) | (12.1 | ) | — | (12.1 | ) | ||||||||||||
Reclassification realized in net earnings | — | — | 3.2 | 5.2 | 8.4 | |||||||||||||||
Balance at February 24, 2013 | $ | (1.5 | ) | $ | 0.3 | $ | (58.6 | ) | $ | (90.5 | ) | $ | (150.3 | ) | ||||||
The following table presents the amounts and line items in our consolidated statements of earnings where adjustments reclassified from AOCI into net earnings were recorded: | ||||||||||||||||||||
Amount Reclassified from AOCI into Net Earnings | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in millions) | Location of Gain (Loss) Recognized in Earnings | February 23, | February 24, | February 23, | February 24, | |||||||||||||||
AOCI Components | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Derivatives | ||||||||||||||||||||
Commodity contracts | -1 | $ | 0.6 | $ | 0.2 | (0.1 | ) | 0.1 | ||||||||||||
Equity contracts | -2 | — | — | (0.7 | ) | 0.2 | ||||||||||||||
Interest rate contracts | Interest, net | (2.6 | ) | (2.6 | ) | (7.8 | ) | (5.7 | ) | |||||||||||
Foreign currency contracts | -2 | 0.2 | (0.1 | ) | 0.5 | (0.1 | ) | |||||||||||||
Total before tax | $ | (1.8 | ) | $ | (2.5 | ) | $ | (8.1 | ) | $ | (5.5 | ) | ||||||||
Tax benefit | 0.7 | 1 | 2.8 | 2.3 | ||||||||||||||||
Net of tax | $ | (1.1 | ) | $ | (1.5 | ) | $ | (5.3 | ) | $ | (3.2 | ) | ||||||||
Benefit plan funding position | ||||||||||||||||||||
Recognized net actuarial loss - pension/postretirement plans | -3 | $ | (2.2 | ) | $ | (2.2 | ) | $ | (6.8 | ) | $ | (6.6 | ) | |||||||
Recognized net actuarial loss - other plans | -4 | (0.4 | ) | (0.6 | ) | (1.0 | ) | (1.8 | ) | |||||||||||
Total before tax | $ | (2.6 | ) | $ | (2.8 | ) | $ | (7.8 | ) | $ | (8.4 | ) | ||||||||
Tax benefit | 1 | 1.1 | 3 | 3.2 | ||||||||||||||||
Net of tax | $ | (1.6 | ) | $ | (1.7 | ) | $ | (4.8 | ) | $ | (5.2 | ) | ||||||||
-1 | Primarily included in cost of sales. See Note 8 for additional details. | |||||||||||||||||||
-2 | Primarily included in cost of sales and selling, general and administrative expenses. See Note 8 for additional details. | |||||||||||||||||||
-3 | Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of restaurant labor expenses and selling, general and administrative expenses. See Note 7 for additional details. | |||||||||||||||||||
-4 | Included in the computation of net periodic benefit costs - other plans, which is a component of selling, general and administrative expenses. |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Retirement Plans | ' | ||||||||||||||||
Retirement Plans | |||||||||||||||||
Components of net periodic benefit cost are as follows: | |||||||||||||||||
Defined Benefit Plans | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 1.1 | $ | 1.2 | $ | 3.3 | $ | 3.6 | |||||||||
Interest cost | 2.6 | 2.5 | 7.7 | 7.5 | |||||||||||||
Expected return on plan assets | (4.3 | ) | (4.9 | ) | (12.9 | ) | (14.6 | ) | |||||||||
Recognized net actuarial loss | 2.2 | 2.2 | 6.8 | 6.6 | |||||||||||||
Net periodic benefit cost | $ | 1.6 | $ | 1 | $ | 4.9 | $ | 3.1 | |||||||||
Postretirement Benefit Plan | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.6 | $ | 0.6 | |||||||||
Interest cost | 0.4 | 0.3 | 1 | 0.9 | |||||||||||||
Net periodic benefit cost | $ | 0.6 | $ | 0.5 | $ | 1.6 | $ | 1.5 | |||||||||
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 9 Months Ended | ||||||||||||||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||
We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as required by ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial and commodities derivatives to manage interest rate, compensation and commodities pricing and foreign currency exchange rate risks inherent in our business operations. To the extent our derivatives are effective in offsetting the variability of the hedged cash flows, and otherwise meet the cash flow hedge accounting criteria required by ASC Topic 815, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss), net of tax. These changes in fair value will be reclassified into earnings at the time of the forecasted transaction. Ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period in which it occurs. To the extent our derivatives are effective in mitigating changes in fair value, and otherwise meet the fair value hedge accounting criteria required by ASC Topic 815, gains and losses in the derivatives’ fair value are included in current earnings, as are the gains and losses of the related hedged item. To the extent the hedge accounting criteria are not met, the derivative contracts are utilized as economic hedges and changes in the fair value of such contracts are recorded currently in earnings in the period in which they occur. | |||||||||||||||||||||||||||||
By using these instruments, we expose ourselves, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. We minimize this credit risk by entering into transactions with high quality counterparties. We currently do not have any provisions in our agreements with counterparties that would require either party to hold or post collateral in the event that the market value of the related derivative instrument exceeds a certain limit. As such, the maximum amount of loss due to counterparty credit risk we would incur at February 23, 2014, if counterparties to the derivative instruments failed completely to perform, would approximate the values of derivative instruments currently recognized as assets in our consolidated balance sheet. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates, commodity prices, currency prices, or the market price of our common stock. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. | |||||||||||||||||||||||||||||
The notional values of our derivative contracts are as follows: | |||||||||||||||||||||||||||||
Notional Values | |||||||||||||||||||||||||||||
(in millions) | February 23, | May 26, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodities | $ | 4.7 | $ | 18.2 | |||||||||||||||||||||||||
Foreign currency | 5.8 | 20.3 | |||||||||||||||||||||||||||
Interest rate swaps | 200 | 100 | |||||||||||||||||||||||||||
Equity forwards | 23.5 | 24.9 | |||||||||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Equity forwards | $ | 42.3 | $ | 49.1 | |||||||||||||||||||||||||
Commodities | 0.3 | 0.6 | |||||||||||||||||||||||||||
We periodically enter into commodity futures, swaps and option contracts (collectively, commodity contracts) to reduce the risk of variability in cash flows associated with fluctuations in the price we pay for natural gas, diesel fuel and butter. For certain of our commodity purchases, changes in the price we pay for these commodities are highly correlated with changes in the market price of these commodities. For these commodity purchases, we designate commodity contracts as cash flow hedging instruments. For the remaining commodity purchases, changes in the price we pay for these commodities are not highly correlated with changes in the market price, generally due to the timing of when changes in the market prices are reflected in the price we pay. For these commodity purchases, we utilize these commodity contracts as economic hedges. Our commodity contracts currently extend through May 2014. | |||||||||||||||||||||||||||||
We periodically enter into foreign currency forward contracts to reduce the risk of fluctuations in exchange rates specifically related to forecasted transactions or payments made in a foreign currency either for commodities and items used directly in our restaurants or for forecasted payments of services. Our foreign currency forward contracts currently extend through May 2014. | |||||||||||||||||||||||||||||
We are currently party to interest-rate swap agreements with $200.0 million of notional value to limit the risk of changes in fair value of a portion of the $400.0 million 4.500 percent senior notes due October 2021 and a portion of the $500.0 million 6.200 percent senior notes due October 2017. The swap agreements effectively swap the fixed-rate obligations for floating-rate obligations, thereby mitigating changes in fair value of the related debt prior to maturity. The swap agreements were designated as fair value hedges of the related debt and met the requirements to be accounted for under the short-cut method, resulting in no ineffectiveness in the hedging relationship. During the quarters ended February 23, 2014 and February 24, 2013, $0.5 million and $0.4 million, respectively, was recorded as a reduction to interest expense related to the net swap settlements. During the nine months ended February 23, 2014 and February 24, 2013, $1.6 million and $2.5 million, respectively, was recorded as a reduction to interest expense related to the net swap settlements. | |||||||||||||||||||||||||||||
We enter into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested, unrecognized Darden stock units. The equity forward contracts will be settled at the end of the vesting periods of their underlying Darden stock units, which range between four and five years. The contracts were initially designated as cash flow hedges to the extent the Darden stock units are unvested and, therefore, unrecognized as a liability in our financial statements. As of February 23, 2014, we were party to equity forward contracts that were indexed to 1.2 million shares of our common stock, at varying forward rates between $31.19 per share and $52.66 per share, extending through August 2018. The forward contracts can only be net settled in cash. As the Darden stock units vest, we will de-designate that portion of the equity forward contract that no longer qualifies for hedge accounting and changes in fair value associated with that portion of the equity forward contract will be recognized in current earnings. We periodically incur interest on the notional value of the contracts and receive dividends on the underlying shares. These amounts are recognized currently in earnings as they are incurred. | |||||||||||||||||||||||||||||
We entered into equity forward contracts to hedge the risk of changes in future cash flows associated with cash-settled performance stock units and employee-directed investments in Darden stock within the non-qualified deferred compensation plan. The equity forward contracts are indexed to 0.3 million shares of our common stock at forward rates between $47.07 and $51.95 per share, can only be net settled in cash and expire between fiscal 2015 and 2016. We did not elect hedge accounting with the expectation that changes in the fair value of the equity forward contracts would offset changes in the fair value of the performance stock units and Darden stock investments in the non-qualified deferred compensation plan within selling, general and administrative expenses in our consolidated statements of earnings. | |||||||||||||||||||||||||||||
The fair value of our derivative contracts are as follows: | |||||||||||||||||||||||||||||
Balance | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||
Sheet | |||||||||||||||||||||||||||||
(in millions) | Location | February 23, | May 26, | February 23, | May 26, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | -1 | $ | 0.8 | $ | 0.1 | $ | — | $ | (0.3 | ) | |||||||||||||||||||
Equity forwards | -1 | 1 | — | — | (0.6 | ) | |||||||||||||||||||||||
Interest rate related | -1 | 1.3 | 1.9 | — | — | ||||||||||||||||||||||||
Foreign currency forwards | -1 | 0.6 | 0.6 | — | — | ||||||||||||||||||||||||
$ | 3.7 | $ | 2.6 | $ | — | $ | (0.9 | ) | |||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | -1 | $ | 0.1 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Equity forwards | -1 | 2.1 | — | — | (1.3 | ) | |||||||||||||||||||||||
$ | 2.2 | $ | — | $ | — | $ | (1.3 | ) | |||||||||||||||||||||
Total derivative contracts | $ | 5.9 | $ | 2.6 | $ | — | $ | (2.2 | ) | ||||||||||||||||||||
-1 | Derivative assets and liabilities are included in receivables, net, prepaid expenses and other current assets and other current liabilities, as applicable, on our consolidated balance sheets. | ||||||||||||||||||||||||||||
The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Amount of Gain (Loss) | Location of | (1) Amount of Gain (Loss) | ||||||||||||||||||||||||
Recognized in AOCI | Gain (Loss) | Reclassified from AOCI to | Gain (Loss) | Recognized in Earnings | |||||||||||||||||||||||||
(effective portion) | Reclassified | Earnings (effective portion) | Recognized | (ineffective portion) | |||||||||||||||||||||||||
from AOCI to | in Earnings | ||||||||||||||||||||||||||||
Earnings | (ineffective | ||||||||||||||||||||||||||||
portion) | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
Type of Derivative | February 23, | February 24, | February 23, | February 24, | February 23, | February 24, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Commodity | $ | 1.2 | $ | — | -2 | $ | 0.6 | $ | 0.2 | -2 | $ | — | $ | — | |||||||||||||||
Equity | (2.1 | ) | (5.3 | ) | -3 | — | — | -3 | 0.4 | 0.4 | |||||||||||||||||||
Interest rate | — | — | Interest, net | (2.6 | ) | (2.6 | ) | Interest, net | — | — | |||||||||||||||||||
Foreign currency | 0.4 | 0.1 | -4 | 0.2 | (0.1 | ) | -4 | — | — | ||||||||||||||||||||
$ | (0.5 | ) | $ | (5.2 | ) | $ | (1.8 | ) | $ | (2.5 | ) | $ | 0.4 | $ | 0.4 | ||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Amount of Gain (Loss) | Location of | (1) Amount of Gain (Loss) | ||||||||||||||||||||||||
Recognized in AOCI | Gain (Loss) | Reclassified from AOCI to | Gain (Loss) | Recognized in Earnings | |||||||||||||||||||||||||
(effective portion) | Reclassified | Earnings (effective portion) | Recognized | (ineffective portion) | |||||||||||||||||||||||||
from AOCI to | in Earnings | ||||||||||||||||||||||||||||
Earnings | (ineffective | ||||||||||||||||||||||||||||
portion) | |||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
Type of Derivative | February 23, | February 24, | February 23, | February 24, | February 23, | February 24, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Commodity | $ | 0.9 | $ | 1 | -2 | $ | (0.1 | ) | $ | 0.1 | -2 | $ | — | $ | — | ||||||||||||||
Equity | (2.5 | ) | (6.1 | ) | -3 | (0.7 | ) | 0.2 | -3 | 1 | 0.9 | ||||||||||||||||||
Interest rate | — | (10.1 | ) | Interest, net | (7.8 | ) | (5.7 | ) | Interest, net | — | — | ||||||||||||||||||
Foreign currency | 0.6 | (0.6 | ) | -4 | 0.5 | (0.1 | ) | -4 | — | — | |||||||||||||||||||
$ | (1.0 | ) | $ | (15.8 | ) | $ | (8.1 | ) | $ | (5.5 | ) | $ | 1 | $ | 0.9 | ||||||||||||||
-1 | Generally, all of our derivative instruments designated as cash flow hedges have some level of ineffectiveness, which is recognized currently in earnings. However, as these amounts are generally nominal and our consolidated financial statements are presented “in millions,” these amounts may appear as zero in this tabular presentation. | ||||||||||||||||||||||||||||
-2 | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs and restaurant expenses, which are components of cost of sales. | ||||||||||||||||||||||||||||
-3 | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is restaurant labor expenses, which is a component of cost of sales, and selling, general and administrative expenses. | ||||||||||||||||||||||||||||
-4 | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs, which is a component of cost of sales, and selling, general and administrative expenses. | ||||||||||||||||||||||||||||
The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Hedged Item in | Amount of Gain (Loss) | Location of | ||||||||||||||||||||||||
Recognized in Earnings on | Gain (Loss) | Fair Value Hedge | Recognized in Earnings on | Gain (Loss) | |||||||||||||||||||||||||
Derivatives | Recognized in | Relationship | Related Hedged Item | Recognized in | |||||||||||||||||||||||||
Earnings on | Earnings on | ||||||||||||||||||||||||||||
Derivatives | Related | ||||||||||||||||||||||||||||
Hedged Item | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
February 23, | February 24, | February 23, | February 24, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Interest rate | $ | 0.7 | $ | (1.2 | ) | Interest, net | Fixed-rate debt | $ | (0.7 | ) | $ | 1.2 | Interest, net | ||||||||||||||||
The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Hedged Item in | Amount of Gain (Loss) | Location of | ||||||||||||||||||||||||
Recognized in Earnings on | Gain (Loss) | Fair Value Hedge | Recognized in Earnings on | Gain (Loss) | |||||||||||||||||||||||||
Derivatives | Recognized in | Relationship | Related Hedged Item | Recognized in | |||||||||||||||||||||||||
Earnings on | Earnings on | ||||||||||||||||||||||||||||
Derivatives | Related | ||||||||||||||||||||||||||||
Hedged Item | |||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
February 23, | February 24, | February 23, | February 24, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Interest rate | $ | (0.7 | ) | $ | — | Interest, net | Fixed-rate debt | $ | 0.7 | $ | — | Interest, net | |||||||||||||||||
The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
Location of Gain (Loss) | Amount of Gain (Loss) Recognized in Earnings | ||||||||||||||||||||||||||||
Recognized | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
in Earnings on | February 23, 2014 | February 24, 2013 | February 23, 2014 | February 24, 2013 | |||||||||||||||||||||||||
(in millions) | Derivatives | ||||||||||||||||||||||||||||
Commodity contracts | Cost of Sales (1) | $ | 0.5 | $ | 0.1 | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||||||
Equity forwards | Cost of Sales (2) | (0.6 | ) | (1.8 | ) | (0.3 | ) | (0.7 | ) | ||||||||||||||||||||
Equity forwards | Selling, General and Administrative | (1.6 | ) | (5.9 | ) | (0.6 | ) | (4.6 | ) | ||||||||||||||||||||
$ | (1.7 | ) | $ | (7.6 | ) | $ | (0.8 | ) | $ | (5.4 | ) | ||||||||||||||||||
-1 | Location of the gain (loss) recognized in earnings is food and beverage costs and restaurant expenses, which are components of cost of sales. | ||||||||||||||||||||||||||||
-2 | Location of the gain (loss) recognized in earnings is restaurant labor expenses, which is a component of cost of sales. | ||||||||||||||||||||||||||||
Based on the fair value of our derivative instruments designated as cash flow hedges as of February 23, 2014, we expect to reclassify $8.4 million of net losses on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next twelve months based on the timing of our forecasted commodity purchases and maturity of equity forward and interest rate related instruments. However, the amounts ultimately realized in earnings will be dependent on the fair value of the contracts on the settlement dates. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
The fair values of cash equivalents, accounts receivable, accounts payable and short-term debt approximate their carrying amounts due to their short duration. | |||||||||||||||||||
The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as reflected on our consolidated balance sheets as of February 23, 2014 and May 26, 2013: | |||||||||||||||||||
Items Measured at Fair Value at February 23, 2014 | |||||||||||||||||||
(in millions) | Fair value | Quoted prices | Significant | Significant | |||||||||||||||
of assets | in active | other | unobservable | ||||||||||||||||
(liabilities) | market for | observable | inputs | ||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||
(liabilities) | (Level 2) | ||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed-income securities: | |||||||||||||||||||
Corporate bonds | (1 | ) | $ | 9.6 | $ | — | $ | 9.6 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 6.2 | 6.2 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 2.6 | — | 2.6 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Commodities futures, swaps & options | (3 | ) | 0.9 | — | 0.8 | 0.1 | |||||||||||||
Equity forwards | (4 | ) | 3.1 | — | 3.1 | — | |||||||||||||
Interest rate swaps | (5 | ) | 1.3 | — | 1.3 | — | |||||||||||||
Foreign currency forwards | (6 | ) | 0.6 | — | 0.6 | — | |||||||||||||
Total | $ | 24.3 | $ | 6.2 | $ | 18 | $ | 0.1 | |||||||||||
Items Measured at Fair Value at May 26, 2013 | |||||||||||||||||||
(in millions) | Fair value | Quoted prices | Significant | Significant | |||||||||||||||
of assets | in active | other | unobservable | ||||||||||||||||
(liabilities) | market for | observable | inputs | ||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||
(liabilities) | (Level 2) | ||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed-income securities: | |||||||||||||||||||
Corporate bonds | (1 | ) | $ | 10 | $ | — | $ | 10 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 8.7 | 8.7 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 5.6 | — | 5.6 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Commodities futures, swaps & options | (3 | ) | (0.2 | ) | — | (0.2 | ) | — | |||||||||||
Equity forwards | (4 | ) | (1.9 | ) | — | (1.9 | ) | — | |||||||||||
Interest rate locks & swaps | (5 | ) | 1.9 | — | 1.9 | — | |||||||||||||
Foreign currency forwards | (6 | ) | 0.6 | — | 0.6 | — | |||||||||||||
Total | $ | 24.7 | $ | 8.7 | $ | 16 | $ | — | |||||||||||
-1 | The fair value of these securities is based on closing market prices of the investments when applicable, or, alternatively, valuations utilizing market data and other observable inputs, inclusive of the risk of nonperformance. | ||||||||||||||||||
-2 | The fair value of our U.S. Treasury securities is based on closing market prices. | ||||||||||||||||||
-3 | The fair value of our commodities futures, swaps and options classified as Level 2 is based on closing market prices of the contracts, inclusive of the risk of nonperformance. The fair value of our commodities futures, swaps and options classified as Level 3 is based on internal models that consider the various contract provisions, in addition to the closing market prices of the related commodities. | ||||||||||||||||||
-4 | The fair value of our equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. | ||||||||||||||||||
-5 | The fair value of our interest rate lock and swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance. | ||||||||||||||||||
-6 | The fair value of our foreign currency forward contracts is based on closing forward exchange market prices, inclusive of the risk of nonperformance. | ||||||||||||||||||
The following table presents the changes in Level 3 financial instruments at February 23, 2014: | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||
Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
(in millions) | Derivatives: | ||||||||||||||||||
Commodities, Futures, Swaps & Options | |||||||||||||||||||
Balances at May 26, 2013 | $ | — | |||||||||||||||||
Amount of gain (loss) recognized in earnings (1) | 0.1 | ||||||||||||||||||
Purchases, sales and settlements | — | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | ||||||||||||||||||
Balance at February 23, 2014 | $ | 0.1 | |||||||||||||||||
-1 | The location of the loss recognized in earnings is restaurant expenses, which is a component of cost of sales. | ||||||||||||||||||
The carrying value and fair value of long-term debt, including the amounts included in current liabilities, as of February 23, 2014, was $2.50 billion. The carrying value and fair value of long-term debt as of May 26, 2013, was $2.50 billion and $2.70 billion, respectively. The fair value of long-term debt, which is classified as Level 2 in the fair value hierarchy, is determined based on market prices or, if market prices are not available, the present value of the underlying cash flows discounted at our incremental borrowing rates. | |||||||||||||||||||
Adjustments to the fair values of non-financial assets measured at fair value on a non-recurring basis as of February 23, 2014 and May 26, 2013 were not material. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Feb. 23, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
As collateral for performance on contracts and as credit guarantees to banks and insurers, we are contingently liable for guarantees of subsidiary obligations under standby letters of credit. As of February 23, 2014 and May 26, 2013, we had $113.5 million and $107.0 million, respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. As of February 23, 2014 and May 26, 2013, we had $20.5 million and $20.6 million, respectively, of standby letters of credit related to contractual operating lease obligations and other payments. All standby letters of credit are renewable annually. | |
As of February 23, 2014 and May 26, 2013, we had $3.4 million and $4.2 million, respectively, of guarantees associated with leased properties that have been assigned to third parties. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of these potential payments discounted at our pre-tax cost of capital as of February 23, 2014 and May 26, 2013, amounted to $2.7 million and $3.4 million, respectively. We did not accrue for the guarantees, as the likelihood of the third parties defaulting on the assignment agreements was deemed to be less than probable. In the event of default by a third party, the indemnity and default clauses in our assignment agreements govern our ability to recover from and pursue the third party for damages incurred as a result of its default. We do not hold any third-party assets as collateral related to these assignment agreements, except to the extent that the assignment allows us to repossess the building and personal property. These guarantees expire over their respective lease terms, which range from fiscal 2015 through fiscal 2021. | |
We are subject to private lawsuits, administrative proceedings and claims that arise in the ordinary course of our business. A number of these lawsuits, proceedings and claims may exist at any given time. These matters typically involve claims from guests, employees and others related to operational issues common to the restaurant industry, and can also involve infringement of, or challenges to, our trademarks. While the resolution of a lawsuit, proceeding or claim may have an impact on our financial results for the period in which it is resolved, we believe that the final disposition of the lawsuits, proceedings and claims in which we are currently involved, either individually or in the aggregate, will not have a material adverse effect on our financial position, results of operations or liquidity. The following is a brief description of the more significant of these matters. | |
In September 2012, a collective action under the Fair Labor Standards Act was filed in the United States District Court for the Southern District of Florida, Alequin v. Darden Restaurants, Inc., in which named plaintiffs claim that the Company required or allowed certain employees at Olive Garden, Red Lobster, LongHorn Steakhouse, Bahama Breeze and Seasons 52 to work off the clock and required them to perform tasks unrelated to their tipped duties while taking a tip credit against their hourly rate of pay. The plaintiffs seek an unspecified amount of alleged back wages, liquidated damages, and attorneys' fees. In July 2013, the United States District Court for the Southern District of Florida conditionally certified a nationwide class of servers and bartenders who worked in the aforementioned restaurants at any point from September 6, 2009 through September 6, 2012. Unlike a class action, a collective action requires potential class members to “opt in” rather than “opt out” following the issuance of a notice. Out of the approximately 217,000 opt-in notices distributed, 20,225 were returned. The Company will have an opportunity to seek to have the class de-certified and/or seek to have the case dismissed on its merits. We believe that our wage and hour policies comply with the law and that we have meritorious defenses to the substantive claims and strong defenses supporting de-certification. An estimate of the possible loss, if any, or the range of loss cannot be made at this stage of the proceeding. | |
In November, 2011, a lawsuit entitled ChHab v. Darden Restaurants, Inc. was filed in the United States District Court for the Southern District of New York alleging a collective action under the Fair Labor Standards Act and a class action under the applicable New York state wage and hour statutes. The named plaintiffs claim that the Company required or allowed certain employees at The Capital Grille to work off the clock, share tips with individuals who polished silverware to assist the plaintiffs, and required the plaintiffs to perform tasks unrelated to their tipped duties while taking a tip credit against their hourly rate of pay. The plaintiffs seek an unspecified amount of alleged back wages, liquidated damages, and attorneys' fees. In September 2013, the United States District Court for the Southern District of New York conditionally certified a nationwide class for the Fair Labor Standards Act claims only of tipped employees who worked in the aforementioned restaurants at any point from November 17, 2008 through September 19, 2013. Potential class members are required to “opt in” rather than “opt out” following the issuance of a notice. Out of the approximately 3,200 opt-in notices distributed, 541 were returned. As with the Alequin matter, the Company will have an opportunity to seek to have the class de-certified and/or seek to have the case dismissed on its merits. We believe that our wage and hour policies comply with the law and that we have meritorious defenses to the substantive claims in this matter. An estimate of the possible loss, if any, or the range of loss cannot be made at this stage of the proceeding. |
Workforce_Reduction_Costs_Note
Workforce Reduction Costs (Notes) | 9 Months Ended | ||||||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Restructuring and Related Activities Disclosure | ' | ||||||||||||||||||||
Workforce Reduction Costs | |||||||||||||||||||||
During the second quarter of fiscal 2014, we performed a comprehensive review of operations resulting in decisions to reduce operating support costs through a combination of workforce reductions and program spending cuts (September 2013 Plan). During the third quarter of fiscal 2014, in connection with our decision to reduce unit growth, we incurred further workforce reductions (January 2014 Plan). In accordance with these actions, we incurred employee termination benefits and other costs which are included in selling, general and administrative expenses in our consolidated statements of earnings as follows: | |||||||||||||||||||||
Fiscal Periods Ending | |||||||||||||||||||||
23-Feb-14 | |||||||||||||||||||||
(in millions) | Three Months Ended (3) | Nine Months Ended | |||||||||||||||||||
Employee termination benefits (1) | $ | 0.3 | $ | 11.2 | |||||||||||||||||
Other (2) | (0.1 | ) | 0.7 | ||||||||||||||||||
Total | $ | 0.2 | $ | 11.9 | |||||||||||||||||
-1 | Includes salary and stock-based compensation expense. | ||||||||||||||||||||
-2 | Includes postemployment medical, outplacement and relocation costs. | ||||||||||||||||||||
-3 | Reflects expense for the January 2014 Plan and subsequent adjustments to the September 2013 Plan based on updated information. | ||||||||||||||||||||
The following table summarizes the accrued employee termination benefits and other costs which are primarily included in other current liabilities in our consolidated balance sheet as of February 23, 2014: | |||||||||||||||||||||
(in millions) | September | January | Payments | Adjustments | Balance at | ||||||||||||||||
2013 Plan | 2014 Plan | 23-Feb-14 | |||||||||||||||||||
Employee termination benefits (1) | $ | 7.7 | $ | 0.7 | $ | (3.5 | ) | $ | (0.4 | ) | $ | 4.5 | |||||||||
Other | 0.8 | 0.1 | (0.3 | ) | (0.2 | ) | 0.4 | ||||||||||||||
Total | $ | 8.5 | $ | 0.8 | $ | (3.8 | ) | $ | (0.6 | ) | $ | 4.9 | |||||||||
-1 | Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. | ||||||||||||||||||||
We expect the majority of the remaining liability to be paid by the first quarter of fiscal 2015 and the remainder to be paid by the first quarter of fiscal 2016. |
Application_of_New_Accounting_
Application of New Accounting Standards | 9 Months Ended |
Feb. 23, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Application of New Accounting Standards | ' |
Application of New Accounting Standards | |
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The objective of this update is to eliminate the diversity in practice in the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This update does not require any new recurring disclosures and is effective for annual and interim periods beginning after December 15, 2013, which will require us to adopt these provisions in the first quarter of fiscal 2015. We do not believe adoption of this new guidance will have a significant impact on our consolidated financial statements. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Feb. 23, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On March 19, 2014, the Board of Directors declared a cash dividend of $0.55 per share to be paid May 1, 2014 to all shareholders of record as of the close of business on April 10, 2014. |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Feb. 23, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | ||||||||
Nine Months Ended | |||||||||
(in millions) | February 23, 2014 | February 24, 2013 | |||||||
Interest paid, net of amounts capitalized | $ | 65.9 | $ | 61.7 | |||||
Income taxes paid, net of refunds | 63.5 | 67.5 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||
The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes option pricing model were as follows: | |||||||||||||||||
Stock Options Granted | |||||||||||||||||
During the Nine Months Ended | |||||||||||||||||
February 23, 2014 | February 24, 2013 | ||||||||||||||||
Weighted-average fair value | $ | 12.05 | $ | 12.22 | |||||||||||||
Dividend yield | 4.4 | % | 4 | % | |||||||||||||
Expected volatility of stock | 39.6 | % | 39.7 | % | |||||||||||||
Risk-free interest rate | 1.9 | % | 0.8 | % | |||||||||||||
Expected option life (in years) | 6.4 | 6.5 | |||||||||||||||
Summary Of Darden Stock Unit Activity | ' | ||||||||||||||||
The following table presents a summary of our stock-based compensation activity for the nine months ended February 23, 2014: | |||||||||||||||||
(in millions) | Stock | Restricted | Darden | Performance | |||||||||||||
Options | Stock/ | Stock | Stock Units | ||||||||||||||
Restricted | Units | ||||||||||||||||
Stock | |||||||||||||||||
Units | |||||||||||||||||
Outstanding beginning of period | 11.6 | 0.2 | 2.2 | 0.9 | |||||||||||||
Awards granted | 1.7 | 0.1 | 0.6 | 0.3 | |||||||||||||
Awards exercised | (1.4 | ) | (0.1 | ) | (0.4 | ) | (0.2 | ) | |||||||||
Awards forfeited | (0.3 | ) | — | (0.2 | ) | (0.2 | ) | ||||||||||
Outstanding end of period | 11.6 | 0.2 | 2.2 | 0.8 | |||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | ||||||||||||||||
We recognized expense from stock-based compensation as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Stock options (1) | $ | 4 | $ | 4.7 | $ | 16.5 | $ | 14.2 | |||||||||
Restricted stock/restricted stock units | (0.1 | ) | 0.7 | 0.8 | 2.1 | ||||||||||||
Darden stock units | 3.6 | 1.7 | 14.6 | 12.2 | |||||||||||||
Performance stock units | 0.2 | (0.4 | ) | 4.5 | 4.8 | ||||||||||||
Employee stock purchase plan | 0.5 | 0.5 | 1.4 | 1.4 | |||||||||||||
Director compensation program/other | — | 0.1 | 1.7 | 1.3 | |||||||||||||
Total stock-based compensation expense | $ | 8.2 | $ | 7.3 | $ | 39.5 | $ | 36 | |||||||||
-1 | The increase for the nine months ended February 23, 2014 is primarily attributable to the workforce reduction efforts further discussed in Note 11 |
Net_Earnings_per_Share_Tables
Net Earnings per Share (Tables) | 9 Months Ended | ||||||||||||
Feb. 23, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||||||||
Stock options and restricted stock excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Anti-dilutive stock options and restricted stock | 4.5 | 3.1 | 4.1 | 2.7 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||||||
Feb. 23, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, for the quarters ended February 23, 2014 and February 24, 2013 are as follows: | ||||||||||||||||||||
(in millions) | Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Unrealized Gains (Losses) on Derivatives | Benefit Plan Funding Position | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at November 24, 2013 | $ | (3.7 | ) | $ | 0.1 | $ | (50.1 | ) | $ | (74.2 | ) | $ | (127.9 | ) | ||||||
Gain (loss) | (1.7 | ) | — | (1.1 | ) | — | (2.8 | ) | ||||||||||||
Reclassification realized in net earnings | — | — | 1.1 | 1.6 | 2.7 | |||||||||||||||
Balance at February 23, 2014 | $ | (5.4 | ) | $ | 0.1 | $ | (50.1 | ) | $ | (72.6 | ) | $ | (128.0 | ) | ||||||
Balances at November 25, 2012 | $ | (0.9 | ) | $ | 0.3 | $ | (54.9 | ) | $ | (92.2 | ) | $ | (147.7 | ) | ||||||
Gain (loss) | (0.6 | ) | — | (5.2 | ) | — | (5.8 | ) | ||||||||||||
Reclassification realized in net earnings | — | — | 1.5 | 1.7 | 3.2 | |||||||||||||||
Balance at February 24, 2013 | $ | (1.5 | ) | $ | 0.3 | $ | (58.6 | ) | $ | (90.5 | ) | $ | (150.3 | ) | ||||||
The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended February 23, 2014 and February 24, 2013 are as follows: | ||||||||||||||||||||
(in millions) | Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Marketable Securities | Unrealized Gains (Losses) on Derivatives | Benefit Plan Funding Position | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balances at May 26, 2013 | $ | (1.8 | ) | $ | 0.2 | $ | (53.8 | ) | $ | (77.4 | ) | $ | (132.8 | ) | ||||||
Gain (loss) | (3.6 | ) | (0.1 | ) | (1.6 | ) | — | (5.3 | ) | |||||||||||
Reclassification realized in net earnings | — | — | 5.3 | 4.8 | 10.1 | |||||||||||||||
Balance at February 23, 2014 | $ | (5.4 | ) | $ | 0.1 | $ | (50.1 | ) | $ | (72.6 | ) | $ | (128.0 | ) | ||||||
Balances at May 27, 2012 | $ | (1.6 | ) | $ | 0.4 | $ | (49.7 | ) | $ | (95.7 | ) | $ | (146.6 | ) | ||||||
Gain (loss) | 0.1 | (0.1 | ) | (12.1 | ) | — | (12.1 | ) | ||||||||||||
Reclassification realized in net earnings | — | — | 3.2 | 5.2 | 8.4 | |||||||||||||||
Balance at February 24, 2013 | $ | (1.5 | ) | $ | 0.3 | $ | (58.6 | ) | $ | (90.5 | ) | $ | (150.3 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
The following table presents the amounts and line items in our consolidated statements of earnings where adjustments reclassified from AOCI into net earnings were recorded: | ||||||||||||||||||||
Amount Reclassified from AOCI into Net Earnings | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in millions) | Location of Gain (Loss) Recognized in Earnings | February 23, | February 24, | February 23, | February 24, | |||||||||||||||
AOCI Components | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Derivatives | ||||||||||||||||||||
Commodity contracts | -1 | $ | 0.6 | $ | 0.2 | (0.1 | ) | 0.1 | ||||||||||||
Equity contracts | -2 | — | — | (0.7 | ) | 0.2 | ||||||||||||||
Interest rate contracts | Interest, net | (2.6 | ) | (2.6 | ) | (7.8 | ) | (5.7 | ) | |||||||||||
Foreign currency contracts | -2 | 0.2 | (0.1 | ) | 0.5 | (0.1 | ) | |||||||||||||
Total before tax | $ | (1.8 | ) | $ | (2.5 | ) | $ | (8.1 | ) | $ | (5.5 | ) | ||||||||
Tax benefit | 0.7 | 1 | 2.8 | 2.3 | ||||||||||||||||
Net of tax | $ | (1.1 | ) | $ | (1.5 | ) | $ | (5.3 | ) | $ | (3.2 | ) | ||||||||
Benefit plan funding position | ||||||||||||||||||||
Recognized net actuarial loss - pension/postretirement plans | -3 | $ | (2.2 | ) | $ | (2.2 | ) | $ | (6.8 | ) | $ | (6.6 | ) | |||||||
Recognized net actuarial loss - other plans | -4 | (0.4 | ) | (0.6 | ) | (1.0 | ) | (1.8 | ) | |||||||||||
Total before tax | $ | (2.6 | ) | $ | (2.8 | ) | $ | (7.8 | ) | $ | (8.4 | ) | ||||||||
Tax benefit | 1 | 1.1 | 3 | 3.2 | ||||||||||||||||
Net of tax | $ | (1.6 | ) | $ | (1.7 | ) | $ | (4.8 | ) | $ | (5.2 | ) | ||||||||
-1 | Primarily included in cost of sales. See Note 8 for additional details. | |||||||||||||||||||
-2 | Primarily included in cost of sales and selling, general and administrative expenses. See Note 8 for additional details. | |||||||||||||||||||
-3 | Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of restaurant labor expenses and selling, general and administrative expenses. See Note 7 for additional details. | |||||||||||||||||||
-4 | Included in the computation of net periodic benefit costs - other plans, which is a component of selling, general and administrative expenses. |
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components Of Net Periodic Benefit Cost | ' | ||||||||||||||||
Components of net periodic benefit cost are as follows: | |||||||||||||||||
Defined Benefit Plans | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 1.1 | $ | 1.2 | $ | 3.3 | $ | 3.6 | |||||||||
Interest cost | 2.6 | 2.5 | 7.7 | 7.5 | |||||||||||||
Expected return on plan assets | (4.3 | ) | (4.9 | ) | (12.9 | ) | (14.6 | ) | |||||||||
Recognized net actuarial loss | 2.2 | 2.2 | 6.8 | 6.6 | |||||||||||||
Net periodic benefit cost | $ | 1.6 | $ | 1 | $ | 4.9 | $ | 3.1 | |||||||||
Postretirement Benefit Plan | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 23, | February 24, | February 23, | February 24, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.6 | $ | 0.6 | |||||||||
Interest cost | 0.4 | 0.3 | 1 | 0.9 | |||||||||||||
Net periodic benefit cost | $ | 0.6 | $ | 0.5 | $ | 1.6 | $ | 1.5 | |||||||||
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Notional Values Of Derivative Contracts Designated And Not Designated As Hedging Instruments | ' | ||||||||||||||||||||||||||||
The notional values of our derivative contracts are as follows: | |||||||||||||||||||||||||||||
Notional Values | |||||||||||||||||||||||||||||
(in millions) | February 23, | May 26, | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodities | $ | 4.7 | $ | 18.2 | |||||||||||||||||||||||||
Foreign currency | 5.8 | 20.3 | |||||||||||||||||||||||||||
Interest rate swaps | 200 | 100 | |||||||||||||||||||||||||||
Equity forwards | 23.5 | 24.9 | |||||||||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Equity forwards | $ | 42.3 | $ | 49.1 | |||||||||||||||||||||||||
Commodities | 0.3 | 0.6 | |||||||||||||||||||||||||||
Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments | ' | ||||||||||||||||||||||||||||
The fair value of our derivative contracts are as follows: | |||||||||||||||||||||||||||||
Balance | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||||
Sheet | |||||||||||||||||||||||||||||
(in millions) | Location | February 23, | May 26, | February 23, | May 26, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | -1 | $ | 0.8 | $ | 0.1 | $ | — | $ | (0.3 | ) | |||||||||||||||||||
Equity forwards | -1 | 1 | — | — | (0.6 | ) | |||||||||||||||||||||||
Interest rate related | -1 | 1.3 | 1.9 | — | — | ||||||||||||||||||||||||
Foreign currency forwards | -1 | 0.6 | 0.6 | — | — | ||||||||||||||||||||||||
$ | 3.7 | $ | 2.6 | $ | — | $ | (0.9 | ) | |||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | -1 | $ | 0.1 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Equity forwards | -1 | 2.1 | — | — | (1.3 | ) | |||||||||||||||||||||||
$ | 2.2 | $ | — | $ | — | $ | (1.3 | ) | |||||||||||||||||||||
Total derivative contracts | $ | 5.9 | $ | 2.6 | $ | — | $ | (2.2 | ) | ||||||||||||||||||||
-1 | Derivative assets and liabilities are included in receivables, net, prepaid expenses and other current assets and other current liabilities, as applicable, on our consolidated balance sheets. | ||||||||||||||||||||||||||||
Cash Flow Hedging | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Effects Of Derivative Instruments In Hedging Relationships | ' | ||||||||||||||||||||||||||||
The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Amount of Gain (Loss) | Location of | (1) Amount of Gain (Loss) | ||||||||||||||||||||||||
Recognized in AOCI | Gain (Loss) | Reclassified from AOCI to | Gain (Loss) | Recognized in Earnings | |||||||||||||||||||||||||
(effective portion) | Reclassified | Earnings (effective portion) | Recognized | (ineffective portion) | |||||||||||||||||||||||||
from AOCI to | in Earnings | ||||||||||||||||||||||||||||
Earnings | (ineffective | ||||||||||||||||||||||||||||
portion) | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||
Type of Derivative | February 23, | February 24, | February 23, | February 24, | February 23, | February 24, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Commodity | $ | 1.2 | $ | — | -2 | $ | 0.6 | $ | 0.2 | -2 | $ | — | $ | — | |||||||||||||||
Equity | (2.1 | ) | (5.3 | ) | -3 | — | — | -3 | 0.4 | 0.4 | |||||||||||||||||||
Interest rate | — | — | Interest, net | (2.6 | ) | (2.6 | ) | Interest, net | — | — | |||||||||||||||||||
Foreign currency | 0.4 | 0.1 | -4 | 0.2 | (0.1 | ) | -4 | — | — | ||||||||||||||||||||
$ | (0.5 | ) | $ | (5.2 | ) | $ | (1.8 | ) | $ | (2.5 | ) | $ | 0.4 | $ | 0.4 | ||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Amount of Gain (Loss) | Location of | (1) Amount of Gain (Loss) | ||||||||||||||||||||||||
Recognized in AOCI | Gain (Loss) | Reclassified from AOCI to | Gain (Loss) | Recognized in Earnings | |||||||||||||||||||||||||
(effective portion) | Reclassified | Earnings (effective portion) | Recognized | (ineffective portion) | |||||||||||||||||||||||||
from AOCI to | in Earnings | ||||||||||||||||||||||||||||
Earnings | (ineffective | ||||||||||||||||||||||||||||
portion) | |||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
Type of Derivative | February 23, | February 24, | February 23, | February 24, | February 23, | February 24, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Commodity | $ | 0.9 | $ | 1 | -2 | $ | (0.1 | ) | $ | 0.1 | -2 | $ | — | $ | — | ||||||||||||||
Equity | (2.5 | ) | (6.1 | ) | -3 | (0.7 | ) | 0.2 | -3 | 1 | 0.9 | ||||||||||||||||||
Interest rate | — | (10.1 | ) | Interest, net | (7.8 | ) | (5.7 | ) | Interest, net | — | — | ||||||||||||||||||
Foreign currency | 0.6 | (0.6 | ) | -4 | 0.5 | (0.1 | ) | -4 | — | — | |||||||||||||||||||
$ | (1.0 | ) | $ | (15.8 | ) | $ | (8.1 | ) | $ | (5.5 | ) | $ | 1 | $ | 0.9 | ||||||||||||||
-1 | Generally, all of our derivative instruments designated as cash flow hedges have some level of ineffectiveness, which is recognized currently in earnings. However, as these amounts are generally nominal and our consolidated financial statements are presented “in millions,” these amounts may appear as zero in this tabular presentation. | ||||||||||||||||||||||||||||
-2 | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs and restaurant expenses, which are components of cost of sales. | ||||||||||||||||||||||||||||
-3 | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is restaurant labor expenses, which is a component of cost of sales, and selling, general and administrative expenses. | ||||||||||||||||||||||||||||
-4 | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs, which is a component of cost of sales, and selling, general and administrative expenses. | ||||||||||||||||||||||||||||
Fair Value Hedging | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Effects Of Derivative Instruments In Hedging Relationships | ' | ||||||||||||||||||||||||||||
The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Hedged Item in | Amount of Gain (Loss) | Location of | ||||||||||||||||||||||||
Recognized in Earnings on | Gain (Loss) | Fair Value Hedge | Recognized in Earnings on | Gain (Loss) | |||||||||||||||||||||||||
Derivatives | Recognized in | Relationship | Related Hedged Item | Recognized in | |||||||||||||||||||||||||
Earnings on | Earnings on | ||||||||||||||||||||||||||||
Derivatives | Related | ||||||||||||||||||||||||||||
Hedged Item | |||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
February 23, | February 24, | February 23, | February 24, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Interest rate | $ | 0.7 | $ | (1.2 | ) | Interest, net | Fixed-rate debt | $ | (0.7 | ) | $ | 1.2 | Interest, net | ||||||||||||||||
The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
(in millions) | Amount of Gain (Loss) | Location of | Hedged Item in | Amount of Gain (Loss) | Location of | ||||||||||||||||||||||||
Recognized in Earnings on | Gain (Loss) | Fair Value Hedge | Recognized in Earnings on | Gain (Loss) | |||||||||||||||||||||||||
Derivatives | Recognized in | Relationship | Related Hedged Item | Recognized in | |||||||||||||||||||||||||
Earnings on | Earnings on | ||||||||||||||||||||||||||||
Derivatives | Related | ||||||||||||||||||||||||||||
Hedged Item | |||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
February 23, | February 24, | February 23, | February 24, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Interest rate | $ | (0.7 | ) | $ | — | Interest, net | Fixed-rate debt | $ | 0.7 | $ | — | Interest, net | |||||||||||||||||
Not Designated as Hedging Instruments | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Effects Of Derivative Instruments In Hedging Relationships | ' | ||||||||||||||||||||||||||||
The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows: | |||||||||||||||||||||||||||||
Location of Gain (Loss) | Amount of Gain (Loss) Recognized in Earnings | ||||||||||||||||||||||||||||
Recognized | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
in Earnings on | February 23, 2014 | February 24, 2013 | February 23, 2014 | February 24, 2013 | |||||||||||||||||||||||||
(in millions) | Derivatives | ||||||||||||||||||||||||||||
Commodity contracts | Cost of Sales (1) | $ | 0.5 | $ | 0.1 | $ | 0.1 | $ | (0.1 | ) | |||||||||||||||||||
Equity forwards | Cost of Sales (2) | (0.6 | ) | (1.8 | ) | (0.3 | ) | (0.7 | ) | ||||||||||||||||||||
Equity forwards | Selling, General and Administrative | (1.6 | ) | (5.9 | ) | (0.6 | ) | (4.6 | ) | ||||||||||||||||||||
$ | (1.7 | ) | $ | (7.6 | ) | $ | (0.8 | ) | $ | (5.4 | ) | ||||||||||||||||||
-1 | Location of the gain (loss) recognized in earnings is food and beverage costs and restaurant expenses, which are components of cost of sales. | ||||||||||||||||||||||||||||
-2 | Location of the gain (loss) recognized in earnings is restaurant labor expenses, which is a component of cost of sales. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair Values Of Financial Instruments Measured At Fair Value On Recurring Basis | ' | ||||||||||||||||||
The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as reflected on our consolidated balance sheets as of February 23, 2014 and May 26, 2013: | |||||||||||||||||||
Items Measured at Fair Value at February 23, 2014 | |||||||||||||||||||
(in millions) | Fair value | Quoted prices | Significant | Significant | |||||||||||||||
of assets | in active | other | unobservable | ||||||||||||||||
(liabilities) | market for | observable | inputs | ||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||
(liabilities) | (Level 2) | ||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed-income securities: | |||||||||||||||||||
Corporate bonds | (1 | ) | $ | 9.6 | $ | — | $ | 9.6 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 6.2 | 6.2 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 2.6 | — | 2.6 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Commodities futures, swaps & options | (3 | ) | 0.9 | — | 0.8 | 0.1 | |||||||||||||
Equity forwards | (4 | ) | 3.1 | — | 3.1 | — | |||||||||||||
Interest rate swaps | (5 | ) | 1.3 | — | 1.3 | — | |||||||||||||
Foreign currency forwards | (6 | ) | 0.6 | — | 0.6 | — | |||||||||||||
Total | $ | 24.3 | $ | 6.2 | $ | 18 | $ | 0.1 | |||||||||||
Items Measured at Fair Value at May 26, 2013 | |||||||||||||||||||
(in millions) | Fair value | Quoted prices | Significant | Significant | |||||||||||||||
of assets | in active | other | unobservable | ||||||||||||||||
(liabilities) | market for | observable | inputs | ||||||||||||||||
identical assets | inputs | (Level 3) | |||||||||||||||||
(liabilities) | (Level 2) | ||||||||||||||||||
(Level 1) | |||||||||||||||||||
Fixed-income securities: | |||||||||||||||||||
Corporate bonds | (1 | ) | $ | 10 | $ | — | $ | 10 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 8.7 | 8.7 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 5.6 | — | 5.6 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Commodities futures, swaps & options | (3 | ) | (0.2 | ) | — | (0.2 | ) | — | |||||||||||
Equity forwards | (4 | ) | (1.9 | ) | — | (1.9 | ) | — | |||||||||||
Interest rate locks & swaps | (5 | ) | 1.9 | — | 1.9 | — | |||||||||||||
Foreign currency forwards | (6 | ) | 0.6 | — | 0.6 | — | |||||||||||||
Total | $ | 24.7 | $ | 8.7 | $ | 16 | $ | — | |||||||||||
-1 | The fair value of these securities is based on closing market prices of the investments when applicable, or, alternatively, valuations utilizing market data and other observable inputs, inclusive of the risk of nonperformance. | ||||||||||||||||||
-2 | The fair value of our U.S. Treasury securities is based on closing market prices. | ||||||||||||||||||
-3 | The fair value of our commodities futures, swaps and options classified as Level 2 is based on closing market prices of the contracts, inclusive of the risk of nonperformance. The fair value of our commodities futures, swaps and options classified as Level 3 is based on internal models that consider the various contract provisions, in addition to the closing market prices of the related commodities. | ||||||||||||||||||
-4 | The fair value of our equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. | ||||||||||||||||||
-5 | The fair value of our interest rate lock and swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance. | ||||||||||||||||||
-6 | The fair value of our foreign currency forward contracts is based on closing forward exchange market prices, inclusive of the risk of nonperformance. | ||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||||
The following table presents the changes in Level 3 financial instruments at February 23, 2014: | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||
Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
(in millions) | Derivatives: | ||||||||||||||||||
Commodities, Futures, Swaps & Options | |||||||||||||||||||
Balances at May 26, 2013 | $ | — | |||||||||||||||||
Amount of gain (loss) recognized in earnings (1) | 0.1 | ||||||||||||||||||
Purchases, sales and settlements | — | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | ||||||||||||||||||
Balance at February 23, 2014 | $ | 0.1 | |||||||||||||||||
-1 | The location of the loss recognized in earnings is restaurant expenses, which is a component of cost of sales. |
Workforce_Reduction_Costs_Tabl
Workforce Reduction Costs (Tables) | 9 Months Ended | ||||||||||||||||||||
Feb. 23, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Restructuring and Related Costs | ' | ||||||||||||||||||||
In accordance with these actions, we incurred employee termination benefits and other costs which are included in selling, general and administrative expenses in our consolidated statements of earnings as follows: | |||||||||||||||||||||
Fiscal Periods Ending | |||||||||||||||||||||
23-Feb-14 | |||||||||||||||||||||
(in millions) | Three Months Ended (3) | Nine Months Ended | |||||||||||||||||||
Employee termination benefits (1) | $ | 0.3 | $ | 11.2 | |||||||||||||||||
Other (2) | (0.1 | ) | 0.7 | ||||||||||||||||||
Total | $ | 0.2 | $ | 11.9 | |||||||||||||||||
-1 | Includes salary and stock-based compensation expense. | ||||||||||||||||||||
-2 | Includes postemployment medical, outplacement and relocation costs. | ||||||||||||||||||||
-3 | Reflects expense for the January 2014 Plan and subsequent adjustments to the September 2013 Plan based on updated information. | ||||||||||||||||||||
Other Current Liabilities | ' | ||||||||||||||||||||
The following table summarizes the accrued employee termination benefits and other costs which are primarily included in other current liabilities in our consolidated balance sheet as of February 23, 2014: | |||||||||||||||||||||
(in millions) | September | January | Payments | Adjustments | Balance at | ||||||||||||||||
2013 Plan | 2014 Plan | 23-Feb-14 | |||||||||||||||||||
Employee termination benefits (1) | $ | 7.7 | $ | 0.7 | $ | (3.5 | ) | $ | (0.4 | ) | $ | 4.5 | |||||||||
Other | 0.8 | 0.1 | (0.3 | ) | (0.2 | ) | 0.4 | ||||||||||||||
Total | $ | 8.5 | $ | 0.8 | $ | (3.8 | ) | $ | (0.6 | ) | $ | 4.9 | |||||||||
-1 | Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Interest paid, net of amounts capitalized | $65.90 | $61.70 |
Income taxes paid, net of refunds | $63.50 | $67.50 |
StockBased_Compensation_Option
Stock-Based Compensation (Option Pricing Assumptions) (Details) (Stock Options, USD $) | 9 Months Ended | |
Feb. 23, 2014 | Feb. 24, 2013 | |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted-average fair value | $12.05 | $12.22 |
Dividend yield | 4.40% | 4.00% |
Expected volatility of stock | 39.60% | 39.70% |
Risk-free interest rate | 1.90% | 0.80% |
Expected option life (in years) | '6 years 5 months | '6 years 6 months |
StockBased_Compensation_Share_
Stock-Based Compensation (Share Activity) (Details) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Awards exercised | -1.4 | -1.5 |
Stock Options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Outstanding beginning of period | 11.6 | ' |
Awards granted | 1.7 | ' |
Awards exercised | -1.4 | ' |
Awards forfeited | -0.3 | ' |
Outstanding end of period | 11.6 | ' |
Restricted Stock/ Restricted Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Outstanding beginning of period | 0.2 | ' |
Awards granted | 0.1 | ' |
Awards exercised | -0.1 | ' |
Awards forfeited | 0 | ' |
Outstanding end of period | 0.2 | ' |
Darden Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Outstanding beginning of period | 2.2 | ' |
Awards granted | 0.6 | ' |
Awards exercised | -0.4 | ' |
Awards forfeited | -0.2 | ' |
Outstanding end of period | 2.2 | ' |
Performance Stock Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Outstanding beginning of period | 0.9 | ' |
Awards granted | 0.3 | ' |
Awards exercised | -0.2 | ' |
Awards forfeited | -0.2 | ' |
Outstanding end of period | 0.8 | ' |
StockBased_Compensation_Recogn
Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | $8.20 | $7.30 | $39.50 | $36 | ||||
Stock Options | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | 4 | [1] | 4.7 | [1] | 16.5 | [1] | 14.2 | [1] |
Restricted Stock/ Restricted Stock Units | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | -0.1 | 0.7 | 0.8 | 2.1 | ||||
Darden Stock Units | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | 3.6 | 1.7 | 14.6 | 12.2 | ||||
Performance stock units | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | 0.2 | -0.4 | 4.5 | 4.8 | ||||
Employee stock purchase plan | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | 0.5 | 0.5 | 1.4 | 1.4 | ||||
Director compensation program/other | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Total stock-based compensation expense | $0 | $0.10 | $1.70 | $1.30 | ||||
[1] | The increase for the nine months ended February 23, 2014 is primarily attributable to the workforce reduction efforts further discussed in Note 11. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 9.70% | 22.30% | 12.50% | 23.00% |
Tax position, change is reasonably possible in the next twelve months | $23.90 | ' | $23.90 | ' |
Net_Earnings_per_Share_Details
Net Earnings per Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Anti-dilutive stock options and restricted stock | 4.5 | 3.1 | 4.1 | 2.7 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Schedule of Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Foreign Currency Translation Adjustment | ($3.70) | ($0.90) | ($1.80) | ($1.60) |
Unrealized Gains (Losses) on Marketable Securities | 0.1 | 0.3 | 0.2 | 0.4 |
Unrealized Gains (Losses) on Derivatives | -50.1 | -54.9 | -53.8 | -49.7 |
Benefit Plan Funding Position | -74.2 | -92.2 | -77.4 | -95.7 |
Accumulated Other Comprehensive Income (Loss) | -127.9 | -147.7 | -132.8 | -146.6 |
Foreign Currency Translation Adjustment, Gain (loss) | -1.7 | -0.6 | -3.6 | 0.1 |
Unrealized Gains (Losses) on Marketable Securities, Gain (loss) | 0 | 0 | -0.1 | -0.1 |
Unrealized Gains (Losses) on Derivatives, Gain (loss) | -1.1 | -5.2 | -1.6 | -12.1 |
Accumulated Other Comprehensive Income (Loss), Gain (loss) | -2.8 | -5.8 | -5.3 | -12.1 |
Unrealized Gain (Loss) on Derivatives, Reclassification realized in net earnings | 1.1 | 1.5 | 5.3 | 3.2 |
Benefit Plan Funding Position, Reclassification realized in net earnings | 1.6 | 1.7 | 4.8 | 5.2 |
Accumulated Other Comprehensive Income (Loss), Reclassification realized in net earnings | 2.7 | 3.2 | 10.1 | 8.4 |
Foreign Currency Translation Adjustment | -5.4 | -1.5 | -5.4 | -1.5 |
Unrealized Gains (Losses) on Marketable Securities | 0.1 | 0.3 | 0.1 | 0.3 |
Unrealized Gains (Losses) on Derivatives | -50.1 | -58.6 | -50.1 | -58.6 |
Benefit Plan Funding Position | -72.6 | -90.5 | -72.6 | -90.5 |
Accumulated Other Comprehensive Income (Loss) | ($128) | ($150.30) | ($128) | ($150.30) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Schedule of Reclassification Adjustments out of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Cost of sales | $1,760.90 | $1,752.30 | $5,132.30 | $4,870.80 | ||||
Selling, general and administrative | 209.3 | 199.8 | 660.5 | 634.1 | ||||
Interest, net | -33.1 | -31.9 | -98.7 | -92.7 | ||||
Earnings before income taxes | 121.3 | 173.2 | 228.1 | 362.6 | ||||
Tax benefit | -11.8 | -38.7 | -28.5 | -83.3 | ||||
Net earnings | 109.7 | 134.4 | 199.7 | 278.8 | ||||
Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net earnings | -1.6 | -1.7 | -4.8 | -5.2 | ||||
Derivatives | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Earnings before income taxes | -1.8 | -2.5 | -8.1 | -5.5 | ||||
Tax benefit | 0.7 | 1 | 2.8 | 2.3 | ||||
Net earnings | -1.1 | -1.5 | -5.3 | -3.2 | ||||
Derivatives | Commodity | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Cost of sales | 0.6 | [1] | 0.2 | [1] | -0.1 | [1] | 0.1 | [1] |
Derivatives | Equity | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Selling, general and administrative | 0 | [2] | 0 | [2] | -0.7 | [2] | 0.2 | [2] |
Derivatives | Interest rate related | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Interest, net | -2.6 | -2.6 | -7.8 | -5.7 | ||||
Derivatives | Foreign currency | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Selling, general and administrative | 0.2 | [2] | -0.1 | [2] | 0.5 | [2] | -0.1 | [2] |
Benefit plan funding position | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Earnings before income taxes | -2.6 | -2.8 | -7.8 | -8.4 | ||||
Tax benefit | 1 | 1.1 | 3 | 3.2 | ||||
Benefit plan funding position | Recognized net actuarial loss - pension/postretirement plans | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amount Reclassified from AOCI into Net Earnings, Benefit plan funding position | -2.2 | [3] | -2.2 | [3] | -6.8 | -6.6 | ||
Benefit plan funding position | Recognized net actuarial loss - other plans | Amount Reclassified from AOCI into Net Earnings | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Amount Reclassified from AOCI into Net Earnings, Benefit plan funding position | ($0.40) | [4] | ($0.60) | [4] | ($1) | ($1.80) | ||
[1] | Primarily included in cost of sales. See Note 8 for additional details. | |||||||
[2] | Primarily included in cost of sales and selling, general and administrative expenses. See Note 8 for additional details. | |||||||
[3] | Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of restaurant labor expenses and selling, general and administrative expenses. See Note 7 for additional details. | |||||||
[4] | Included in the computation of net periodic benefit costs - other plans, which is a component of selling, general and administrative expenses. |
Retirement_Plans_Components_Of
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Defined Benefit Plans | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | $1.10 | $1.20 | $3.30 | $3.60 |
Interest cost | 2.6 | 2.5 | 7.7 | 7.5 |
Expected return on plan assets | -4.3 | -4.9 | -12.9 | -14.6 |
Recognized net actuarial loss | 2.2 | 2.2 | 6.8 | 6.6 |
Net periodic benefit cost | 1.6 | 1 | 4.9 | 3.1 |
Postretirement Benefit Plan | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | 0.2 | 0.2 | 0.6 | 0.6 |
Interest cost | 0.4 | 0.3 | 1 | 0.9 |
Net periodic benefit cost | $0.60 | $0.50 | $1.60 | $1.50 |
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 23, 2014 | Feb. 23, 2014 | Feb. 23, 2014 | Feb. 23, 2014 | Feb. 23, 2014 | Feb. 23, 2014 | Sep. 30, 2013 | Feb. 23, 2014 | Feb. 23, 2014 |
Darden Stock Units | Darden Stock Units | Darden Stock Units | Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | 4.500% Senior Notes Due October 2021 | 6.200% Senior Notes Due October 2017 | Interest rate swaps | Commodities futures, swaps & options | |||||
Forward contracts | Minimum | Maximum | Minimum | Maximum | Senior Notes | Senior Notes | 5.625% Senior Notes Due October 2012 | |||||||
Senior Notes | ||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-14 |
Notional value of derivative instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | ' |
Face amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | 500,000,000 | ' | ' |
Interest rate of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 6.20% | ' | ' |
Ineffective portion of interest rate hedge | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction to interest expense related to net swap settlements | 500,000 | 400,000 | 1,600,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | '4 years | '5 years | ' | ' | ' | ' | ' | ' | ' |
Forward contract indexed to issuer's equity, indexed shares | ' | ' | ' | ' | 1.2 | ' | ' | 0.3 | ' | ' | ' | ' | ' | ' |
Common stock at forward contract rate | ' | ' | ' | ' | ' | $31.19 | $52.66 | ' | $47.07 | $51.95 | ' | ' | ' | ' |
Amount of gain (loss) reclassified from AOCI to earnings (effective portion) | ' | ' | ($8,400,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging Activities (Notional Values Of Derivative Contracts Designated And Not Designated As Hedging Instruments) (Details) (USD $) | Feb. 23, 2014 | 26-May-13 |
In Millions, unless otherwise specified | ||
Designated as Hedging Instruments | Commodities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative contracts | $4.70 | $18.20 |
Designated as Hedging Instruments | Foreign currency | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative contracts | 5.8 | 20.3 |
Designated as Hedging Instruments | Interest rate swaps | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative contracts | 200 | 100 |
Designated as Hedging Instruments | Equity forwards | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative contracts | 23.5 | 24.9 |
Not Designated as Hedging Instruments | Commodities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative contracts | 0.3 | 0.6 |
Not Designated as Hedging Instruments | Equity forwards | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative contracts | $42.30 | $49.10 |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging Activities (Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments) (Details) (USD $) | Feb. 23, 2014 | 26-May-13 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | $5.90 | $2.60 | ||
Derivative contracts, Derivative Liabilities | 0 | -2.2 | ||
Designated as Hedging Instruments | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 3.7 | 2.6 | ||
Derivative contracts, Derivative Liabilities | 0 | -0.9 | ||
Designated as Hedging Instruments | Commodity contracts | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 0.8 | [1] | 0.1 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | -0.3 | [1] |
Designated as Hedging Instruments | Equity forwards | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 1 | [1] | 0 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | -0.6 | [1] |
Designated as Hedging Instruments | Interest rate related | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 1.3 | [1] | 1.9 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | 0 | [1] |
Designated as Hedging Instruments | Foreign currency | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 0.6 | [1] | 0.6 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | 0 | [1] |
Not Designated as Hedging Instruments | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 2.2 | 0 | ||
Derivative contracts, Derivative Liabilities | 0 | -1.3 | ||
Not Designated as Hedging Instruments | Commodity contracts | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 0.1 | [1] | 0 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | 0 | [1] |
Not Designated as Hedging Instruments | Equity forwards | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative contracts, Derivative Assets | 2.1 | [1] | 0 | [1] |
Derivative contracts, Derivative Liabilities | $0 | [1] | ($1.30) | [1] |
[1] | Derivative assets and liabilities are included in receivables, net, prepaid expenses and other current assets and other current liabilities, as applicable, on our consolidated balance sheets. |
Derivative_Instruments_And_Hed5
Derivative Instruments And Hedging Activities (Effects Of Derivative Instruments In Cash Flow Hedging Relationships) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | ($0.50) | ($5.20) | ($1) | ($15.80) | ||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | -1.8 | -2.5 | -8.1 | -5.5 | ||||
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | 0.4 | [1] | 0.4 | [1] | 1 | [1] | 0.9 | [1] |
Commodity | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | 1.2 | [2] | 0 | [2] | 0.9 | [2] | 1 | [2] |
Commodity | Cost of Sales | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | 0.6 | [2] | 0.2 | [2] | -0.1 | [2] | 0.1 | [2] |
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Equity | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | -2.1 | [3] | -5.3 | [3] | -2.5 | [3] | -6.1 | [3] |
Equity | Cost of Sales and Selling General and Administrative Expense | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | 0 | [3] | 0 | [3] | -0.7 | [3] | 0.2 | [3] |
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | 0.4 | [1],[3] | 0.4 | [1],[3] | 1 | [1],[3] | 0.9 | [1],[3] |
Interest rate related | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | 0 | 0 | 0 | -10.1 | ||||
Interest rate related | Interest, Net | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | -2.6 | -2.6 | -7.8 | -5.7 | ||||
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Foreign currency | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | 0.4 | [4] | 0.1 | [4] | 0.6 | [4] | -0.6 | [4] |
Foreign currency | Cost of Sales and Selling General and Administrative Expense | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | 0.2 | [4] | -0.1 | [4] | 0.5 | [4] | -0.1 | [4] |
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | $0 | [1],[4] | $0 | [1],[4] | $0 | [1],[4] | $0 | [1],[4] |
[1] | Generally, all of our derivative instruments designated as cash flow hedges have some level of ineffectiveness, which is recognized currently in earnings. However, as these amounts are generally nominal and our consolidated financial statements are presented “in millions,†these amounts may appear as zero in this tabular presentation. | |||||||
[2] | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs and restaurant expenses, which are components of cost of sales. | |||||||
[3] | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is restaurant labor expenses, which is a component of cost of sales, and selling, general and administrative expenses. | |||||||
[4] | Location of the gain (loss) reclassified from AOCI to earnings as well as the gain (loss) recognized in earnings for the ineffective portion of the hedge is food and beverage costs, which is a component of cost of sales, and selling, general and administrative expenses. |
Derivative_Instruments_And_Hed6
Derivative Instruments And Hedging Activities (Effects Of Derivative Instruments In Fair Value Hedging Relationships) (Details) (Interest, Net, Fair Value Hedging, Interest rate related, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 |
Interest, Net | Fair Value Hedging | Interest rate related | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $0.70 | ($1.20) | ($0.70) | $0 |
Amount of Gain (Loss) Recognized in Earnings on Related Hedged Item | ($0.70) | $1.20 | $0.70 | $0 |
Derivative_Instruments_And_Hed7
Derivative Instruments And Hedging Activities (Effects Of Derivatives Not Designated As Hedging Instruments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 24, 2013 | Feb. 23, 2014 | Feb. 24, 2013 | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in Earnings | ($1.70) | ($7.60) | ($0.80) | ($5.40) | ||||
Commodity contracts | Cost of Sales | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in Earnings | 0.5 | [1] | 0.1 | [1] | 0.1 | [1] | -0.1 | [1] |
Equity forwards | Cost of Sales | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in Earnings | -0.6 | [2] | -1.8 | [2] | -0.3 | [2] | -0.7 | [2] |
Equity forwards | Selling, General and Administrative | ' | ' | ' | ' | ||||
Derivative [Line Items] | ' | ' | ' | ' | ||||
Amount of Gain (Loss) Recognized in Earnings | ($1.60) | ($5.90) | ($0.60) | ($4.60) | ||||
[1] | Location of the gain (loss) recognized in earnings is food and beverage costs and restaurant expenses, which are components of cost of sales. | |||||||
[2] | Location of the gain (loss) recognized in earnings is restaurant labor expenses, which is a component of cost of sales. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Values Of Financial Instruments Measured At Fair Value On Recurring Basis) (Details) (Fair Value, Measurements, Recurring, USD $) | Feb. 23, 2014 | 26-May-13 | ||
In Millions, unless otherwise specified | ||||
Fair value of assets (liabilities) | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Total | $24.30 | $24.70 | ||
Fair value of assets (liabilities) | Commodities futures, swaps & options | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0.9 | [1] | -0.2 | [1] |
Fair value of assets (liabilities) | Equity forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 3.1 | [2] | -1.9 | [2] |
Fair value of assets (liabilities) | Interest rate swaps | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 1.3 | [3] | 1.9 | [3] |
Fair value of assets (liabilities) | Foreign currency forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0.6 | [4] | 0.6 | [4] |
Fair value of assets (liabilities) | Corporate bonds | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 9.6 | [5] | 10 | [5] |
Fair value of assets (liabilities) | U.S. Treasury securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 6.2 | [6] | 8.7 | [6] |
Fair value of assets (liabilities) | Mortgage-backed securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 2.6 | [5] | 5.6 | [5] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Total | 6.2 | 8.7 | ||
Quoted prices in active market for identical assets (liabilities) (Level 1) | Commodities futures, swaps & options | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [1] | 0 | [1] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | Equity forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [2] | 0 | [2] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | Interest rate swaps | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [3] | 0 | [3] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | Foreign currency forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [4] | 0 | [4] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | Corporate bonds | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 0 | [5] | 0 | [5] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | U.S. Treasury securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 6.2 | [6] | 8.7 | [6] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | Mortgage-backed securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 0 | [5] | 0 | [5] |
Significant other observable inputs (Level 2) | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Total | 18 | 16 | ||
Significant other observable inputs (Level 2) | Commodities futures, swaps & options | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0.8 | [1] | -0.2 | [1] |
Significant other observable inputs (Level 2) | Equity forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 3.1 | [2] | -1.9 | [2] |
Significant other observable inputs (Level 2) | Interest rate swaps | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 1.3 | [3] | 1.9 | [3] |
Significant other observable inputs (Level 2) | Foreign currency forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0.6 | [4] | 0.6 | [4] |
Significant other observable inputs (Level 2) | Corporate bonds | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 9.6 | [5] | 10 | [5] |
Significant other observable inputs (Level 2) | U.S. Treasury securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 0 | [6] | 0 | [6] |
Significant other observable inputs (Level 2) | Mortgage-backed securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 2.6 | [5] | 5.6 | [5] |
Significant unobservable inputs (Level 3) | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Total | 0.1 | 0 | ||
Significant unobservable inputs (Level 3) | Commodities futures, swaps & options | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0.1 | [1] | 0 | [1] |
Significant unobservable inputs (Level 3) | Equity forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [2] | 0 | [2] |
Significant unobservable inputs (Level 3) | Interest rate swaps | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [3] | 0 | [3] |
Significant unobservable inputs (Level 3) | Foreign currency forwards | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Derivatives, Commodities futures, swaps and options, Equity forwards, Interest rate locks & swaps, and Foreign currency forwards | 0 | [4] | 0 | [4] |
Significant unobservable inputs (Level 3) | Corporate bonds | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 0 | [5] | 0 | [5] |
Significant unobservable inputs (Level 3) | U.S. Treasury securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | 0 | [6] | 0 | [6] |
Significant unobservable inputs (Level 3) | Mortgage-backed securities | ' | ' | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ' | ' | ||
Fixed-income securities, Corporate bonds, U.S Treasury securities, and Mortgage-backed securities | $0 | [5] | $0 | [5] |
[1] | The fair value of our commodities futures, swaps and options classified as Level 2 is based on closing market prices of the contracts, inclusive of the risk of nonperformance. The fair value of our commodities futures, swaps and options classified as Level 3 is based on internal models that consider the various contract provisions, in addition to the closing market prices of the related commodities. | |||
[2] | The fair value of our equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. | |||
[3] | The fair value of our interest rate lock and swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance. | |||
[4] | The fair value of our foreign currency forward contracts is based on closing forward exchange market prices, inclusive of the risk of nonperformance. | |||
[5] | The fair value of these securities is based on closing market prices of the investments when applicable, or, alternatively, valuations utilizing market data and other observable inputs, inclusive of the risk of nonperformance. | |||
[6] | The fair value of our U.S. Treasury securities is based on closing market prices. |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Measurements Using Significant Unobservable Inputs Reconciliation) (Details) (Derivatives: Commodities, Futures, Swaps & Options, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 23, 2014 | |
Derivatives: Commodities, Futures, Swaps & Options | ' | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | |
Balances at May 26, 2013 | $0 | |
Amount of gain (loss) recognized in earnings | 0.1 | [1] |
Purchases, sales and settlements | 0 | |
Transfers in and/or out of Level 3 | 0 | |
Balance at February 23, 2014 | $0.10 | |
[1] | The location of the loss recognized in earnings is restaurant expenses, which is a component of cost of sales. |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt) (Details) (USD $) | Feb. 23, 2014 | 26-May-13 |
In Billions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Carrying value of long-term debt | $2.50 | $2.50 |
Fair value of long-term debt | ' | $2.70 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 9 Months Ended | 1 Months Ended | |||||||
Feb. 23, 2014 | Jul. 31, 2013 | Sep. 30, 2013 | Feb. 23, 2014 | 26-May-13 | Feb. 23, 2014 | 26-May-13 | Feb. 23, 2014 | 26-May-13 | |
Alequin v. Darden Restaurants, Inc. | ChHab v. Darden Restaurants, Inc. | Workers Compensation and General Liabilities Accrued | Workers Compensation and General Liabilities Accrued | Operating Lease Obligation | Operating Lease Obligation | Property Lease Guarantee | Property Lease Guarantee | ||
plaintiff | plaintiff | ||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit | ' | ' | ' | $113,500,000 | $107,000,000 | $20,500,000 | $20,600,000 | ' | ' |
Guarantees associated with leased properties | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 4,200,000 |
Fair value of potential payments discounted at pre-tax cost of capital related to guarantee obligations | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | 3,400,000 |
Accrued liabilities resulting from reassessment of likelihood of third parties defaulting on assignment agreements | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of original opt-In notices distributed | ' | 217,000 | 3,200 | ' | ' | ' | ' | ' | ' |
Number of opt-in notices, returned | ' | 20,225 | 541 | ' | ' | ' | ' | ' | ' |
Workforce_Reduction_Costs_Deta
Workforce Reduction Costs (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Feb. 23, 2014 | Feb. 23, 2014 | Feb. 23, 2014 | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | $0.20 | [1] | ' | $11.90 | ||
Payments | ' | -3.8 | ' | |||
Adjustments | ' | -0.6 | ' | |||
Balance at February 23, 2014 | 4.9 | 4.9 | 4.9 | |||
September 2013 Plan | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | 8.5 | ' | |||
January 2014 Plan | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | 0.8 | ' | |||
Employee termination benefits | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | 0.3 | [1],[2] | ' | 11.2 | [2] | |
Payments | ' | -3.5 | [3] | ' | ||
Adjustments | ' | -0.4 | [3] | ' | ||
Balance at February 23, 2014 | 4.5 | [3] | 4.5 | [3] | 4.5 | [3] |
Employee termination benefits | September 2013 Plan | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | 7.7 | [3] | ' | ||
Employee termination benefits | January 2014 Plan | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | 0.7 | [3] | ' | ||
Other | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | -0.1 | [1],[4] | ' | 0.7 | [4] | |
Payments | ' | -0.3 | ' | |||
Adjustments | ' | -0.2 | ' | |||
Balance at February 23, 2014 | 0.4 | 0.4 | 0.4 | |||
Other | September 2013 Plan | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | 0.8 | ' | |||
Other | January 2014 Plan | ' | ' | ' | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | |||
Restructuring Charges | ' | $0.10 | ' | |||
[1] | Reflects expense for the January 2014 Plan and subsequent adjustments to the September 2013 Plan based on updated information. | |||||
[2] | Includes salary and stock-based compensation expense. | |||||
[3] | Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. | |||||
[4] | Includes postemployment medical, outplacement and relocation costs. |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event, Dividend Declared, USD $) | 0 Months Ended |
Mar. 19, 2014 | |
Subsequent Event | Dividend Declared | ' |
Subsequent Event [Line Items] | ' |
Dividend declared date | 19-Mar-14 |
Cash dividend declared, per share | $0.55 |
Dividend payable date | 1-May-14 |
Dividends payable date of record | 10-Apr-14 |