Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Feb. 22, 2015 | Mar. 13, 2015 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | DARDEN RESTAURANTS INC | |
Entity Central Index Key | 940944 | |
Current Fiscal Year End Date | -26 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 22-Feb-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 125,792,432 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Income Statement [Abstract] | ||||
Sales | $1,730.90 | $1,618.50 | $4,885.70 | $4,635.50 |
Cost of sales: | ||||
Food and beverage | 530.7 | 485.5 | 1,518.20 | 1,386.60 |
Restaurant labor | 535.6 | 508.9 | 1,550.70 | 1,491.90 |
Restaurant expenses | 276 | 271.4 | 825.7 | 795.9 |
Total cost of sales, excluding restaurant depreciation and amortization of $73.8, $70.8, $219.8 and $209.8, respectively | 1,342.30 | 1,265.80 | 3,894.60 | 3,674.40 |
Selling, general and administrative | 134.2 | 154.2 | 484.6 | 494.3 |
Depreciation and amortization | 79.6 | 76.3 | 238.4 | 226 |
Interest, net | 23.3 | 33.1 | 168.3 | 98.8 |
Asset impairment, net | 4.4 | 0 | 51 | 1.2 |
Total costs and expenses | 1,583.80 | 1,529.40 | 4,836.90 | 4,494.70 |
Earnings before income taxes | 147.1 | 89.1 | 48.8 | 140.8 |
Income tax expense (benefit) | 18.7 | 2.5 | -29.5 | 5.9 |
Earnings from continuing operations | 128.4 | 86.6 | 78.3 | 134.9 |
Earnings from discontinued operations, net of tax expense of $3.1, $9.4, $322.4 and $22.6, respectively | 5.4 | 23.1 | 525.9 | 64.8 |
Net earnings | $133.80 | $109.70 | $604.20 | $199.70 |
Basic net earnings per share: | ||||
Earnings from continuing operations (in dollars per share) | $1.03 | $0.66 | $0.61 | $1.03 |
Earnings from discontinued operations (in dollars per share) | $0.04 | $0.18 | $4.10 | $0.50 |
Net earnings (in dollars per share) | $1.07 | $0.84 | $4.71 | $1.53 |
Diluted net earnings per share: | ||||
Earnings from continuing operations (in dollars per share) | $1.01 | $0.65 | $0.60 | $1.02 |
Earnings from discontinued operations (in dollars per share) | $0.04 | $0.17 | $4.04 | $0.48 |
Net earnings (in dollars per share) | $1.05 | $0.82 | $4.64 | $1.50 |
Average number of common shares outstanding: | ||||
Basic (in shares) | 124.6 | 131.3 | 128.2 | 130.7 |
Diluted (in shares) | 126.9 | 133.4 | 130.1 | 132.9 |
Dividends declared per common share (in dollars per share) | $0.55 | $0.55 | $1.65 | $1.65 |
Consolidated_Statements_Of_Ear1
Consolidated Statements Of Earnings (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Income Statement [Abstract] | ||||
Total cost of sales, restaurant depreciation and amortization | $73.80 | $70.80 | $219.80 | $209.80 |
Earnings (losses) from discontinued operations, tax expense (benefit) | $3.10 | $9.40 | $322.40 | $22.60 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $133.80 | $109.70 | $604.20 | $199.70 |
Other comprehensive income (loss): | ||||
Foreign currency adjustment | -2 | -1.7 | 3.5 | -3.6 |
Change in fair value of marketable securities, net of taxes of $0.0, $0.0, $0.0 and $(0.1), respectively | 0 | 0 | 0 | -0.1 |
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $1.0, $1.3, $16.9 and $3.4, respectively | 3 | 0 | 30.4 | 3.7 |
Net unamortized gain arising during period, including amortization of unrecognized net actuarial loss, net of taxes of $0.6, $1.0, $10.4, and $3.0, respectively | 1 | 1.6 | 16.4 | 4.8 |
Other comprehensive income (loss) | 2 | -0.1 | 50.3 | 4.8 |
Total comprehensive income | $135.80 | $109.60 | $654.50 | $204.50 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Change in fair value of marketable securities, tax | $0 | $0 | $0 | ($0.10) |
Change in fair value of derivatives, tax | 1 | 1.3 | 16.9 | 3.4 |
Amortization of unrecognized net actuarial gain, tax | $0.60 | $1 | $10.40 | $3 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Feb. 22, 2015 | 25-May-14 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $436.20 | $98.30 |
Receivables, net | 64 | 83.8 |
Inventories | 172.8 | 196.8 |
Prepaid income taxes | 15.5 | 10.9 |
Prepaid expenses and other current assets | 73.5 | 72.3 |
Deferred income taxes | 174.5 | 124 |
Assets held for sale | 45.4 | 1,390.30 |
Total current assets | 981.9 | 1,976.40 |
Land, buildings and equipment, net of accumulated depreciation and amortization of $2,258.3 and $2,050.2, respectively | 3,288.50 | 3,381 |
Goodwill | 872.4 | 872.5 |
Trademarks | 574.6 | 574.6 |
Other assets | 285.5 | 296.2 |
Total assets | 6,002.90 | 7,100.70 |
Current liabilities: | ||
Accounts payable | 186 | 233.1 |
Short-term debt | 0 | 207.6 |
Accrued payroll | 125.7 | 125.7 |
Accrued income taxes | 116.3 | 0 |
Other accrued taxes | 49.1 | 64.5 |
Unearned revenues | 379.8 | 299.7 |
Current portion of long-term debt | 15 | 15 |
Other current liabilities | 478.9 | 457.4 |
Liabilities associated with assets held for sale | 0 | 215.5 |
Total current liabilities | 1,350.80 | 1,618.50 |
Long-term debt, less current portion | 1,461.70 | 2,481.40 |
Deferred income taxes | 321 | 286.1 |
Deferred rent | 221 | 206.2 |
Obligations under capital leases, net of current installments | 50.1 | 52 |
Other liabilities | 360.5 | 299.6 |
Total liabilities | 3,765.10 | 4,943.80 |
Stockholders’ equity: | ||
Common stock and surplus | 1,338.80 | 1,302.20 |
Retained earnings | 989 | 995.8 |
Treasury stock | -7.8 | -7.8 |
Accumulated other comprehensive income (loss) | -77.8 | -128.1 |
Unearned compensation | -4.4 | -5.2 |
Total stockholders’ equity | 2,237.80 | 2,156.90 |
Total liabilities and stockholders’ equity | $6,002.90 | $7,100.70 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Feb. 22, 2015 | 25-May-14 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Land, buildings, and equipment, accumulated depreciation and amortization | $2,258.30 | $2,050.20 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock And Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation |
In Millions, unless otherwise specified | ||||||
Beginning balance at May. 26, 2013 | $2,059.50 | $1,207.60 | $998.90 | ($8.10) | ($132.80) | ($6.10) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 199.7 | 199.7 | ||||
Other comprehensive income | 4.8 | 4.8 | ||||
Dividends declared | -216.2 | -216.2 | ||||
Stock option exercises (2015: 2.8 shares and 2014: 1.4 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 (2015: 10.0 shares and 2014: 0.0 shares) | -0.5 | -0.1 | -0.4 | |||
Issuance of stock under Employee Stock Purchase Plan and other plans (0.1 shares in 2015 and 2014) | 5.4 | 5.4 | ||||
Ending balance at Feb. 23, 2014 | 2,121.70 | 1,280.90 | 982 | -7.8 | -128 | -5.4 |
Beginning balance at May. 25, 2014 | 2,156.90 | 1,302.20 | 995.8 | -7.8 | -128.1 | -5.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 604.2 | 604.2 | ||||
Other comprehensive income | 50.3 | 50.3 | ||||
Dividends declared | -211.2 | -211.2 | ||||
Stock option exercises (2015: 2.8 shares and 2014: 1.4 shares) | 103.1 | 103.1 | ||||
Stock-based compensation | 21.3 | 21.3 | ||||
ESOP note receivable repayments | 0.8 | 0.8 | ||||
Income tax benefits credited to equity | 9.1 | 9.1 | ||||
Repurchases of common stock (2015: 10.0 shares and 2014: 0.0 shares) | -502.3 | -102.5 | -399.8 | |||
Issuance of stock under Employee Stock Purchase Plan and other plans (0.1 shares in 2015 and 2014) | 5.6 | 5.6 | ||||
Ending balance at Feb. 22, 2015 | $2,237.80 | $1,338.80 | $989 | ($7.80) | ($77.80) | ($4.40) |
Consolidated_Statements_Of_Cha1
Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) (Parenthetical) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 |
Stock option exercised, shares | 2.8 | 1.4 |
Repurchases of common stock, shares | 10 | 0 |
Issuance of treasury stock under Employee Stock Purchase Plan and other plans, shares | 0.1 | 0.1 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 |
Cash flows—operating activities | ||
Net earnings | $604.20 | $199.70 |
Earnings from discontinued operations, net of tax | -525.9 | -64.8 |
Adjustments to reconcile net earnings from continuing operations to cash flows: | ||
Depreciation and amortization | 238.4 | 226 |
Asset impairment charges | 51 | 1.2 |
Amortization of loan costs and losses on interest-rate related derivatives | 6.7 | 10.3 |
Stock-based compensation expense | 41.3 | 33.2 |
Change in current assets and liabilities | 34 | 87.3 |
Contributions to pension and postretirement plans | -1.1 | -0.9 |
(Gain) loss on disposal of land, buildings and equipment | -0.6 | 5.3 |
Change in cash surrender value of trust-owned life insurance | -5.8 | -10.7 |
Deferred income taxes | -0.4 | -21.7 |
Change in deferred rent | 17.2 | 22.2 |
Change in other assets and liabilities | 6.3 | 15.8 |
Loss on extinguishment of debt | 91.3 | 0 |
Income tax benefits from exercise of stock-based compensation credited to goodwill | 0.1 | 0.1 |
Other, net | -0.7 | 3.4 |
Net cash provided by operating activities of continuing operations | 556 | 506.4 |
Cash flows—investing activities | ||
Purchases of land, buildings and equipment | -230.1 | -337.5 |
Proceeds from disposal of land, buildings and equipment | 24.8 | 1.6 |
Purchases of marketable securities | 0 | -3 |
Proceeds from sale of marketable securities | 9.7 | 8.7 |
Increase in other assets | -13.2 | -19.7 |
Net cash used in investing activities of continuing operations | -208.8 | -349.9 |
Cash flows—financing activities | ||
Proceeds from issuance of common stock | 107.1 | 43.8 |
Income tax benefits credited to equity | 9.1 | 9.5 |
Dividends paid | -209.3 | -215.7 |
Repurchases of common stock | -502.3 | -0.5 |
ESOP note receivable repayment | 0.8 | 0.7 |
Proceeds from issuance of short-term debt | 397.4 | 1,832.80 |
Repayments of short-term debt | -605 | -1,815.80 |
Repayment of long-term debt | -1,065.90 | 0 |
Payment of debt issuance costs | 0 | -1.4 |
Principal payments on capital leases | -1.7 | -1.5 |
Proceeds from financing lease obligation | 93.1 | 0 |
Net cash used in financing activities of continuing operations | -1,776.70 | -148.1 |
Cash flows—discontinued operations | ||
Net cash (used in) provided by operating activities of discontinued operations | -216.6 | 160.3 |
Net cash provided by (used in) investing activities of discontinued operations | 1,984 | -129.9 |
Net cash provided by discontinued operations | 1,767.40 | 30.4 |
Increase in cash and cash equivalents | 337.9 | 38.8 |
Cash and cash equivalents - beginning of period | 98.3 | 88.2 |
Cash and cash equivalents - end of period | 436.2 | 127 |
Cash flows from changes in current assets and liabilities | ||
Receivables, net | 18.7 | 16.7 |
Inventories | 55.6 | -34.2 |
Prepaid expenses and other current assets | -5 | 1.5 |
Accounts payable | -43.5 | 23.3 |
Accrued payroll | 8 | 3.5 |
Prepaid/accrued income taxes | -55.7 | -7.3 |
Other accrued taxes | -2.3 | -2.5 |
Unearned revenues | 75 | 63.1 |
Other current liabilities | -16.8 | 23.2 |
Change in current assets and liabilities | 34 | 87.3 |
Supplemental schedule of noncash investing activities: | ||
Increase in land, buildings and equipment through accrued purchases | $18.90 | $34.20 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Feb. 22, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Darden Restaurants, Inc. (we, our, Darden or the Company) owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden®, 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. We operate on a 52/53 week fiscal year, which ends on the last Sunday in May and our fiscal year ending May 31, 2015 will contain 53 weeks of operation. Operating results for the quarter ended February 22, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending May 31, 2015. | |
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 25, 2014. 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 Sale | |
On May 15, 2014, we entered into an agreement to sell Red Lobster and certain related assets and associated liabilities and closed on the sale on July 28, 2014. For the quarters and nine months ended February 22, 2015 and February 23, 2014, all gains on disposition, impairment charges and disposal costs, along with the sales, costs and expenses and income taxes attributable to Red Lobster and two closed synergy locations, have been aggregated in a single caption entitled “Earnings from discontinued operations, net of tax expense” in our consolidated statements of earnings for all periods presented. See Note 2 - Dispositions for additional information. |
Dispositions
Dispositions | 9 Months Ended | |||||||||||||||
Feb. 22, 2015 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Dispositions | Dispositions | |||||||||||||||
On July 28, 2014, we closed on the sale of 705 Red Lobster restaurants, however, as of February 22, 2015, 17 of the properties remain subject to landlord consents and satisfaction of other contractual requirements, which are expected to be satisfied within the next six months. Therefore, the assets of these remaining restaurants continue to be classified as held for sale and recognition of the gain on the related proceeds was deferred. The proceeds of approximately $53.2 million associated with landlord consents are classified as other current liabilities on our consolidated balance sheet as of February 22, 2015. As the landlord consents and remaining contractual requirements are satisfied, we will derecognize the related assets and record the commensurate gain on the transaction. In conjunction with the sale of Red Lobster, there were 19 locations where Red Lobster shared a land parcel with another Darden brand. The land and related buildings for these 19 Darden locations were included in the sale transaction and simultaneously leased back to Darden. The proceeds associated with the sale of these properties are classified as a financing lease obligation on our consolidated balance sheet as a component of other liabilities and the associated lease payments will amortize the obligation over the life of the properties. Additionally, in the fourth quarter of fiscal 2014, in connection with the expected sale of Red Lobster, we closed two of the six restaurants that housed both a Red Lobster and an Olive Garden in the same building (synergy restaurants). In the first quarter of fiscal 2015, we completed the conversion of the four remaining synergy restaurants to stand-alone Olive Garden restaurants. | ||||||||||||||||
As of February 22, 2015, we received $2.08 billion in cash proceeds, net of transaction-related costs of approximately $29.3 million. During the nine months ended February 22, 2015, we recognized a gain on the sale of Red Lobster of $825.9 million, which is included in earnings from discontinued operations in our consolidated statement of earnings. | ||||||||||||||||
For the quarters and nine months ended February 22, 2015 and February 23, 2014, all gains on disposition, impairment charges and disposal costs, along with the sales, costs and expenses and income taxes attributable to these restaurants, have been aggregated in a single caption entitled “Earnings from discontinued operations, net of tax expense” in our consolidated statements of earnings for all periods presented. No amounts for shared general and administrative operating support expense or interest expense were allocated to discontinued operations. Assets associated with those restaurants not yet disposed of, that are considered held for sale, have been segregated from continuing operations and presented as assets held for sale on our accompanying consolidated balance sheets. In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. This update also expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. We elected to early adopt these provisions in the third quarter of fiscal 2015. | ||||||||||||||||
Earnings from discontinued operations, net of taxes in our accompanying consolidated statements of earnings are comprised of the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(in millions) | February 22, 2015 | February 23, 2014 | February 22, 2015 | February 23, 2014 | ||||||||||||
Sales | $ | — | $ | 614.5 | $ | 400.4 | $ | 1,805.90 | ||||||||
Total cost of sales | (0.6 | ) | 495 | 324 | 1,457.80 | |||||||||||
Selling, general and administrative (1) | (7.9 | ) | 54.8 | (772.1 | ) | 164.8 | ||||||||||
Depreciation and amortization | — | 32.2 | 0.2 | 95.9 | ||||||||||||
Earnings before income taxes | 8.5 | 32.5 | 848.3 | 87.4 | ||||||||||||
Income tax expense | 3.1 | 9.4 | 322.4 | 22.6 | ||||||||||||
Earnings from discontinued operations, net of tax | $ | 5.4 | $ | 23.1 | $ | 525.9 | $ | 64.8 | ||||||||
-1 | Amounts for the quarter and nine months ended February 22, 2015 include the gain recognized on the sale of Red Lobster. | |||||||||||||||
The following table presents the carrying amounts of the major classes of assets and liabilities classified as held for sale on our accompanying consolidated balance sheets: | ||||||||||||||||
(in millions) | February 22, 2015 | May 25, | ||||||||||||||
2014 | ||||||||||||||||
Current assets | $ | — | $ | 241 | ||||||||||||
Land, buildings and equipment, net | 45.4 | 1,084.80 | ||||||||||||||
Other assets | — | 64.5 | ||||||||||||||
Total assets | $ | 45.4 | $ | 1,390.30 | ||||||||||||
Current liabilities | $ | — | $ | 130.6 | ||||||||||||
Other liabilities | — | 84.9 | ||||||||||||||
Total liabilities | $ | — | $ | 215.5 | ||||||||||||
During the quarter ended February 22, 2015, we divested all of our interest in our lobster aquaculture activities and we have no further commitments or obligations with respect to such activities. This divestiture did not represent a strategic shift in our operations, and, accordingly, it did not meet the definition to be reported as a discontinued operation. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Feb. 22, 2015 | |||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | ||||||||
Nine Months Ended | |||||||||
(in millions) | February 22, 2015 | February 23, 2014 | |||||||
Interest paid, net of amounts capitalized | $ | 107.9 | $ | 66 | |||||
Income taxes paid, net of refunds | 203.7 | 63.5 | |||||||
For the nine months ended February 22, 2015, interest paid includes payments associated with the retirement of long-term debt (see Note 14 - Long-Term Debt for further information), of $44.0 million in addition to $12.8 million of interest accrued through the date of the retirement. For the nine months ended February 22, 2015, income taxes paid includes tax payments associated with the gain on the sale of Red Lobster. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Feb. 22, 2015 | |||||||||||||||||
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 | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
February 22, 2015 | February 23, 2014 | ||||||||||||||||
Weighted-average fair value | $ | 10.59 | $ | 12.05 | |||||||||||||
Dividend yield | 4.5 | % | 4.4 | % | |||||||||||||
Expected volatility of stock | 37.3 | % | 39.6 | % | |||||||||||||
Risk-free interest rate | 2.1 | % | 1.9 | % | |||||||||||||
Expected option life (in years) | 6.5 | 6.4 | |||||||||||||||
The following table presents a summary of our stock-based compensation activity for the nine months ended February 22, 2015: | |||||||||||||||||
(in millions) | Stock | Restricted | Darden | Performance | |||||||||||||
Options | Stock/ | Stock | Stock Units | ||||||||||||||
Restricted | Units | ||||||||||||||||
Stock | |||||||||||||||||
Units | |||||||||||||||||
Outstanding beginning of period | 11.2 | 0.2 | 2.1 | 0.3 | |||||||||||||
Awards granted | 1.2 | — | 0.4 | 0.1 | |||||||||||||
Awards exercised | (2.8 | ) | (0.1 | ) | (0.4 | ) | (0.1 | ) | |||||||||
Awards forfeited | (0.4 | ) | — | (0.7 | ) | (0.2 | ) | ||||||||||
Performance unit adjustment | — | — | — | 0.3 | |||||||||||||
Outstanding end of period | 9.2 | 0.1 | 1.4 | 0.4 | |||||||||||||
We recognized expense from stock-based compensation as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 22, | February 23, | February 22, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Stock options (1) | $ | 2.4 | $ | 3.6 | $ | 17.1 | $ | 15.1 | |||||||||
Restricted stock/restricted stock units (1) | 0.5 | (0.3 | ) | 1.6 | 0.5 | ||||||||||||
Darden stock units | 4.1 | 2.2 | 8.9 | 10.1 | |||||||||||||
Performance stock units (1) | 3.6 | 0.2 | 11.6 | 4.3 | |||||||||||||
Employee stock purchase plan | 0.3 | 0.5 | 1 | 1.4 | |||||||||||||
Director compensation program/other | 0.5 | 0.1 | 1.1 | 1.8 | |||||||||||||
Total stock-based compensation expense | $ | 11.4 | $ | 6.3 | $ | 41.3 | $ | 33.2 | |||||||||
-1 | The increase for the nine months ended February 22, 2015 is primarily attributable to the workforce reduction efforts further discussed in Note 12. | ||||||||||||||||
As of the effective date of the Red Lobster sale, all outstanding, unvested stock options, restricted stock and Darden stock units held by Darden employees that transferred to Red Lobster were either vested on a pro-rata basis or canceled. Approximately 23.7 thousand performance stock units remain outstanding and are expected to be settled on a pro-rata basis on the scheduled dates in the first quarter of fiscal 2016 and 2017 when the applicable performance factors are determined. | |||||||||||||||||
Our stock plan award agreements in place prior to October 2014 contain a change-in-control provision, where, following a change-in-control, the awards fully vest upon a qualifying termination. Following our 2014 annual meeting of shareholders, qualifying terminations during the 24-month period ending October 2016 will require all unvested awards granted prior to the 2014 annual meeting to be immediately vested. |
Income_Taxes
Income Taxes | 9 Months Ended |
Feb. 22, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The effective income tax rate for the quarter and nine months ended February 22, 2015 was 12.7 percent and (60.5) percent, respectively, compared to an effective income tax rate of 2.8 percent and 4.2 percent for the quarter and nine months ended February 23, 2014, respectively. The change in the effective income tax rate for the quarter ended February 22, 2015 as compared to the quarter ended February 23, 2014 is primarily attributable to an increase in earnings before income taxes. The change in the effective income tax rate for the nine months ended February 22, 2015 as compared to the nine months ended February 23, 2014 is primarily attributable to an increase in the impact of FICA tax credits for employee reported tips on lower earnings before income taxes resulting from significant charges from debt breakage costs, asset impairments and workforce reduction costs. Excluding the impact of these costs, the related tax benefits and other discrete items, our effective income tax rate for the nine months ended February 22, 2015 would have been approximately 19.5 percent. | |
Included in our remaining balance of unrecognized tax benefits is $30.0 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. 22, 2015 | |||||||||||||
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 22, | February 23, | February 22, | February 23, | |||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Anti-dilutive stock options and restricted stock | — | 4.5 | 1.5 | 4.1 | |||||||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||||||||
Feb. 22, 2015 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity | |||||||||||||||||||
Share Repurchase Program | ||||||||||||||||||||
In July 2014, as part of the previously authorized share repurchase program, we entered into accelerated share repurchase (ASR) agreements with Goldman, Sachs & Co. and Wells Fargo Bank, National Association (Dealers). The ASR program provided for the repurchase of an aggregate of $500.0 million of our common stock. Under the ASR agreements, we paid an aggregate of $500.0 million to the Dealers in August 2014 and received an initial delivery of approximately 8.6 million shares on October 1, 2014. In December 2014, the ASR program was completed and we received the final delivery of approximately 1.3 million shares. The total number of shares we purchased in connection with the ASR transactions was based on a combined discounted volume-weighted average price (VWAP) of $50.12 per share which was determined based on the average of the daily VWAP of our common stock over the duration of the program, less an agreed discount. Upon receipt, the repurchased shares were retired and restored to authorized but unissued shares of common stock. | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) (AOCI) | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, for the quarters ended February 22, 2015 and February 23, 2014 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 23, 2014 | $ | 0.8 | $ | 0.1 | $ | (23.0 | ) | $ | (57.7 | ) | $ | (79.8 | ) | |||||||
Gain (loss) | (2.0 | ) | — | 1.4 | — | (0.6 | ) | |||||||||||||
Reclassification realized in net earnings | — | — | 1.6 | 1 | 2.6 | |||||||||||||||
Balance at February 22, 2015 | $ | (1.2 | ) | $ | 0.1 | $ | (20.0 | ) | $ | (56.7 | ) | $ | (77.8 | ) | ||||||
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 | ) | ||||||
The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended February 22, 2015 and February 23, 2014 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 May 25, 2014 | $ | (4.7 | ) | $ | 0.1 | $ | (50.4 | ) | $ | (73.1 | ) | $ | (128.1 | ) | ||||||
Gain (loss) | (3.8 | ) | — | 2.1 | 14.6 | 12.9 | ||||||||||||||
Reclassification realized in net earnings | 7.3 | — | 28.3 | 1.8 | 37.4 | |||||||||||||||
Balance at February 22, 2015 | $ | (1.2 | ) | $ | 0.1 | $ | (20.0 | ) | $ | (56.7 | ) | $ | (77.8 | ) | ||||||
Balance 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 | ) | ||||||
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 22, | February 23, | February 22, | February 23, | |||||||||||||||
AOCI Components | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Derivatives | ||||||||||||||||||||
Commodity contracts | -1 | $ | — | $ | 0.6 | — | (0.1 | ) | ||||||||||||
Equity contracts | -2 | — | — | (0.9 | ) | (0.7 | ) | |||||||||||||
Interest rate contracts | Interest, net | (2.5 | ) | (2.6 | ) | (44.4 | ) | (7.8 | ) | |||||||||||
Foreign currency contracts | -2 | — | 0.2 | — | 0.5 | |||||||||||||||
Total before tax | $ | (2.5 | ) | $ | (1.8 | ) | $ | (45.3 | ) | $ | (8.1 | ) | ||||||||
Tax benefit | 0.9 | 0.7 | 17 | 2.8 | ||||||||||||||||
Net of tax | $ | (1.6 | ) | $ | (1.1 | ) | $ | (28.3 | ) | $ | (5.3 | ) | ||||||||
Benefit plan funding position | ||||||||||||||||||||
Recognized net actuarial loss - pension/postretirement plans | -3 | $ | (0.6 | ) | $ | (2.2 | ) | $ | (1.9 | ) | $ | (6.8 | ) | |||||||
Recognized net actuarial loss - other plans | -4 | (1.0 | ) | (0.4 | ) | (1.3 | ) | (1.0 | ) | |||||||||||
Total before tax | $ | (1.6 | ) | $ | (2.6 | ) | $ | (3.2 | ) | $ | (7.8 | ) | ||||||||
Tax benefit | 0.6 | 1 | 1.4 | 3 | ||||||||||||||||
Net of tax | $ | (1.0 | ) | $ | (1.6 | ) | $ | (1.8 | ) | $ | (4.8 | ) | ||||||||
-1 | Primarily included in cost of sales. See Note 9 for additional details. | |||||||||||||||||||
-2 | Primarily included in cost of sales and selling, general and administrative expenses. See Note 9 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 8 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. 22, 2015 | |||||||||||||||||
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 22, | February 23, | February 22, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 0.4 | $ | 1.1 | $ | 0.9 | $ | 3.3 | |||||||||
Interest cost | 2.5 | 2.6 | 7.5 | 7.7 | |||||||||||||
Expected return on plan assets | (3.8 | ) | (4.3 | ) | (11.4 | ) | (12.9 | ) | |||||||||
Recognized net actuarial loss | 0.6 | 2.2 | 1.9 | 6.8 | |||||||||||||
Net periodic benefit (credit) cost | $ | (0.3 | ) | $ | 1.6 | $ | (1.1 | ) | $ | 4.9 | |||||||
Postretirement Benefit Plan | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 22, | February 23, | February 22, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 0.1 | $ | 0.2 | $ | 0.4 | $ | 0.6 | |||||||||
Interest cost | — | 0.4 | 0.8 | 1 | |||||||||||||
Unrecognized prior service cost | (1.6 | ) | — | (1.6 | ) | — | |||||||||||
Recognized net actuarial loss | 0.3 | — | 0.6 | — | |||||||||||||
Net periodic benefit (credit) cost | $ | (1.2 | ) | $ | 0.6 | $ | 0.2 | $ | 1.6 | ||||||||
During the second quarter of fiscal 2015, the retiree health care plan was changed from a self-insured plan to a retiree health exchange with a subsidy to eligible participants through a Health Reimbursement Account (HRA). As a result of these changes, the plan was remeasured resulting in a $23.7 million pre-tax reduction in the accumulated postretirement benefit obligation which is reflected as a prior year service credit. This credit is being amortized into expense over the expected remaining service period of the fully eligible active participant population and is expected to reduce fiscal 2015 expense by $3.4 million. |
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activities | 9 Months Ended | ||||||||||||||||||||||||||||
Feb. 22, 2015 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities | Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||
We enter into derivative instruments solely for risk management purposes, 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 cash-flow hedging instruments 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 fair-value hedging instruments 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 22, 2015, 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. | |||||||||||||||||||||||||||||
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 $100.0 million of the $121.9 million 4.500 percent senior notes due October 2021 and $100.0 million 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 each of the quarters ended February 22, 2015 and February 23, 2014, $0.5 million was recorded as a reduction to interest expense related to the net swap settlements. During the nine months ended February 22, 2015 and February 23, 2014, $2.3 million and $1.6 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 22, 2015, we were party to equity forward contracts that were indexed to 0.8 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 0.2 million shares of our common stock at forward rates between $46.17 and $51.95 per share, can only be net settled in cash and expire between fiscal 2016 and 2019. 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 notional values and fair value of our derivative contracts are as follows: | |||||||||||||||||||||||||||||
Notional Values | Balance | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||
Sheet | |||||||||||||||||||||||||||||
(in millions) | February 22, | May 25, | Location | February 22, | May 25, | February 22, | May 25, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | $ | — | $ | 0.9 | -1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Equity forwards | 13.6 | 20.6 | -1 | 0.2 | — | — | (0.5 | ) | |||||||||||||||||||||
Interest rate related | 200 | 200 | -1 | 2.2 | 1.6 | — | — | ||||||||||||||||||||||
Foreign currency forwards | — | 0.3 | -1 | — | 0.1 | — | — | ||||||||||||||||||||||
$ | 2.4 | $ | 1.7 | $ | — | $ | (0.5 | ) | |||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Equity forwards | $ | 49.6 | $ | 47.4 | -1 | 0.6 | — | — | (1.2 | ) | |||||||||||||||||||
$ | 0.6 | $ | — | $ | — | $ | (1.2 | ) | |||||||||||||||||||||
Total derivative contracts | $ | 3 | $ | 1.7 | $ | — | $ | (1.7 | ) | ||||||||||||||||||||
-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 22, | February 23, | February 22, | February 23, | February 22, | February 23, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Commodity | $ | — | $ | 1.2 | -2 | $ | — | $ | 0.6 | -2 | $ | — | $ | — | |||||||||||||||
Equity | 1.4 | (2.1 | ) | -3 | — | — | -3 | 0.2 | 0.4 | ||||||||||||||||||||
Interest rate | — | — | Interest, net | (2.5 | ) | (2.6 | ) | Interest, net | — | — | |||||||||||||||||||
Foreign currency | — | 0.4 | -4 | — | 0.2 | -4 | — | — | |||||||||||||||||||||
$ | 1.4 | $ | (0.5 | ) | $ | (2.5 | ) | $ | (1.8 | ) | $ | 0.2 | $ | 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 22, | February 23, | February 22, | February 23, | February 22, | February 23, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Commodity | $ | — | $ | 0.9 | -2 | $ | — | $ | (0.1 | ) | -2 | $ | — | $ | — | ||||||||||||||
Equity | 2.1 | (2.5 | ) | -3 | (0.9 | ) | (0.7 | ) | -3 | 0.8 | 1 | ||||||||||||||||||
Interest rate | — | — | Interest, net | (44.4 | ) | (7.8 | ) | Interest, net | — | — | |||||||||||||||||||
Foreign currency | — | 0.6 | -4 | — | 0.5 | -4 | — | — | |||||||||||||||||||||
$ | 2.1 | $ | (1.0 | ) | $ | (45.3 | ) | $ | (8.1 | ) | $ | 0.8 | $ | 1 | |||||||||||||||
-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 22, | February 23, | February 22, | February 23, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
Interest rate | $ | 0.1 | $ | 0.7 | Interest, net | Fixed-rate debt | $ | (0.1 | ) | $ | (0.7 | ) | Interest, net | ||||||||||||||||
(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 22, | February 23, | February 22, | February 23, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
Interest rate | $ | 0.6 | $ | (0.7 | ) | Interest, net | Fixed-rate debt | $ | (0.6 | ) | $ | 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) Recognized | Amount of Gain (Loss) Recognized in Earnings | ||||||||||||||||||||||||||||
in Earnings on Derivatives | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 22, 2015 | February 23, 2014 | February 22, 2015 | February 23, 2014 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Commodity contracts | Cost of Sales (1) | $ | — | $ | 0.5 | $ | — | $ | 0.1 | ||||||||||||||||||||
Equity forwards | Cost of Sales (2) | 1.7 | (0.6 | ) | 2.9 | (0.3 | ) | ||||||||||||||||||||||
Equity forwards | Selling, General and Administrative | 3.9 | (1.6 | ) | 6.7 | (0.6 | ) | ||||||||||||||||||||||
$ | 5.6 | $ | (1.7 | ) | $ | 9.6 | $ | (0.8 | ) | ||||||||||||||||||||
-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 22, 2015, we expect to reclassify $4.7 million of net losses on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months based on the maturity of our equity forward contracts and amortization of deferred losses on settled 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. 22, 2015 | |||||||||||||||||||
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 22, 2015 and May 25, 2014: | |||||||||||||||||||
Items Measured at Fair Value at February 22, 2015 | |||||||||||||||||||
(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 | ) | $ | 2.3 | $ | — | $ | 2.3 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 5 | 5 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 1.5 | — | 1.5 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Equity forwards | (3 | ) | 0.8 | — | 0.8 | — | |||||||||||||
Interest rate swaps | (4 | ) | 2.2 | — | 2.2 | — | |||||||||||||
Total | $ | 11.8 | $ | 5 | $ | 6.8 | $ | — | |||||||||||
Items Measured at Fair Value at May 25, 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 | ) | $ | 9.7 | $ | — | $ | 9.7 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 6.1 | 6.1 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 2.6 | — | 2.6 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Equity forwards | (3 | ) | (1.7 | ) | — | (1.7 | ) | — | |||||||||||
Interest rate locks & swaps | (4 | ) | 1.6 | — | 1.6 | — | |||||||||||||
Foreign currency forwards | (5 | ) | 0.1 | — | 0.1 | — | |||||||||||||
Total | $ | 18.4 | $ | 6.1 | $ | 12.3 | $ | — | |||||||||||
-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 equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. | ||||||||||||||||||
-4 | 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. | ||||||||||||||||||
-5 | The fair value of our foreign currency forward contracts is based on closing forward exchange market prices, inclusive of the risk of nonperformance. | ||||||||||||||||||
The carrying value and fair value of long-term debt, including the amounts included in current liabilities, as of February 22, 2015, was $1.48 billion and $1.57 billion, respectively. The carrying value and fair value of long-term debt, including the amounts included in current liabilities, as of May 25, 2014, was $2.50 billion and $2.63 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 22, 2015 are discussed in Note 15 - Asset Impairment, Net. Adjustments to the fair values of non-financial assets measured at fair value on a non-recurring basis as of May 25, 2014 were not material. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Feb. 22, 2015 | |
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 22, 2015 and May 25, 2014, we had $124.2 million and $113.5 million, respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. As of February 22, 2015 and May 25, 2014, we had $14.1 million and $17.8 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 22, 2015 and May 25, 2014, we had $143.3 million and $3.4 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 the maximum potential future payments discounted at our weighted-average cost of capital as of February 22, 2015 and May 25, 2014, amounted to $109.7 million and $2.7 million, respectively. We did not record a liability for the guarantees, as the likelihood of the third parties defaulting on the assignment agreements was deemed to be remote. 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. Assuming exercise of all option periods, these guarantees expire over their respective lease terms, which range from fiscal 2015 through fiscal 2044. | |
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. In June 2014, the Company filed a motion seeking to have the class decertified. In September 2014, the Court granted the Company’s motion to decertify the class which resulted in the dismissal of all opt-ins. In October 2014, the Court granted the parties' joint motion to stay the proceedings pending completion of proceedings culminating in arbitration through the Company’s Dispute Resolution Program. In December 2014, the Court administratively closed the case. We believe that our wage and hour policies comply with the law and that we have meritorious defenses to the remaining 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. | |
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 decertified 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
Workforce Reduction Costs | 9 Months Ended | ||||||||||||||||||||||||||||
Feb. 22, 2015 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Work Reduction Costs | Workforce Reduction Costs | ||||||||||||||||||||||||||||
Beginning in fiscal 2014, we performed comprehensive reviews of our operations and support structure resulting in changes in our growth plans and related support structure needs. As a result, we had workforce reductions and program spending cuts in September 2013 (September 2013 Plan), January 2014 (January 2014 Plan), May 2014 (May 2014 Plan) and November 2014 (November 2014 Plan). In accordance with these actions, we incurred employee termination benefits costs and other costs which are included in selling, general and administrative expenses in our consolidated statements of earnings for the quarters and nine months ended February 22, 2015 and February 23, 2014 as follows: | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
(in millions) | February 22, | February 23, | February 22, | February 23, | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
Employee termination benefits (1) | $ | 0.7 | $ | 0.3 | $ | 27.7 | $ | 11.2 | |||||||||||||||||||||
Other (2) | — | (0.1 | ) | 0.4 | 0.7 | ||||||||||||||||||||||||
Total | $ | 0.7 | $ | 0.2 | $ | 28.1 | $ | 11.9 | |||||||||||||||||||||
-1 | Includes salary and stock-based compensation expense. | ||||||||||||||||||||||||||||
-2 | Includes postemployment medical, outplacement and relocation costs. | ||||||||||||||||||||||||||||
The following table summarizes the accrued employee termination benefits and other costs which are primarily included in other current liabilities on our consolidated balance sheet as of February 22, 2015: | |||||||||||||||||||||||||||||
(in millions) | September | January | May | November | Payments | Adjustments | Balance at February 22, 2015 | ||||||||||||||||||||||
2013 Plan | 2014 Plan | 2014 Plan | 2014 Plan | ||||||||||||||||||||||||||
Employee termination benefits (1) | $ | 7.7 | $ | 0.7 | $ | 5 | $ | 17.2 | $ | (17.3 | ) | $ | 0.4 | $ | 13.7 | ||||||||||||||
Other | 0.8 | 0.1 | 0.2 | 0.4 | (1.1 | ) | (0.2 | ) | 0.2 | ||||||||||||||||||||
Total | $ | 8.5 | $ | 0.8 | $ | 5.2 | $ | 17.6 | $ | (18.4 | ) | $ | 0.2 | $ | 13.9 | ||||||||||||||
-1 | Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. | ||||||||||||||||||||||||||||
We expect approximately $0.5 million of additional costs related to the November 2014 Plan. We expect the remaining liability to be paid by the second quarter of fiscal 2017. |
Special_Charges
Special Charges | 9 Months Ended |
Feb. 22, 2015 | |
Other Income and Expenses [Abstract] | |
Special Charges | Special Charges |
For the nine months ended February 22, 2015, we recognized charges of $12.6 million related to advisory, legal and other professional service fees directly related to addressing shareholder activism and the proxy contest with Starboard Value LP and its affiliates. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended |
Feb. 22, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt |
During the first nine months of fiscal 2015, we retired approximately $1.01 billion aggregate principal of long-term debt, comprised of $278.1 million aggregate principal of our 4.500 percent senior notes due 2021, $338.9 million aggregate principal of our 3.350 percent senior notes due 2022, $80.0 million aggregate principal amount of our 3.790 percent senior notes due 2019, $210.0 million aggregate principal amount of our 4.520 percent senior notes due 2024 and $100.0 million aggregate principal amount of our outstanding 7.125 percent debentures due 2016. | |
For the quarter and nine months ended February 22, 2015, we recorded approximately $0.8 million and $91.3 million, respectively, of expenses associated with the retirement. These expenses included cash components for repurchase premiums and make-whole amounts of approximately $0.4 million benefit and $44.0 million expense for the quarter and nine months ended February 22, 2015, respectively. Non-cash charges associated with hedge and loan cost write-offs were approximately $1.2 million and $47.3 million for the quarter and nine months ended February 22, 2015, respectively. These amounts were recorded in interest, net in our consolidated statements of earnings for the quarter and nine months ended February 22, 2015, respectively. |
Asset_Impairment_Net
Asset Impairment, Net | 9 Months Ended |
Feb. 22, 2015 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment, Net | Asset Impairment, Net |
During the quarter and nine months ended February 22, 2015, we recognized long-lived asset impairment charges of $4.4 million ($2.7 million net of tax) and $51.0 million ($33.4 million net of tax), respectively. Impairment charges resulted primarily from the carrying value of restaurant assets exceeding the estimated fair market value, which is based on projected cash flows. Of the total impairments, $0.3 million and $34.1 million for the quarter and nine months ended February 22, 2015, respectively, related to restaurant impairments. During the nine months ended February 22, 2015, management identified nine Olive Garden locations and three Seasons 52 locations where the estimated useful life was significantly shortened based on a re-evaluation of expected lease renewals, leading to significant decreases in projected cash flows. We also recognized impairments of assets related to the expected disposal of excess land parcels, our lobster aquaculture project and a corporate airplane in connection with the closure of our aviation department during the nine months ended February 22, 2015. During the quarter and nine months ended February 23, 2014, we recognized long-lived asset impairment charges of $0.0 million and $1.2 million ($0.7 million net of tax), respectively, primarily from the carrying value of restaurant assets exceeding the estimated fair market value, which is based on projected cash flows. These costs are included in asset impairments, net as a component of earnings from continuing operations in the accompanying consolidated statements of earnings. Impairment charges were measured based on the amount by which the carrying amount of these assets exceeded their fair value. Fair value is generally determined based on appraisals or sales prices of comparable assets and estimates of future cash flows. |
Application_of_New_Accounting_
Application of New Accounting Standards | 9 Months Ended |
Feb. 22, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Application of New Accounting Standards | Application of New Accounting Standards |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Feb. 22, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On March 18, 2015, the Board of Directors declared a cash dividend of $0.55 per share to be paid May 1, 2015 to all shareholders of record as of the close of business on April 10, 2015. |
Dispositions_Tables
Dispositions (Tables) | 9 Months Ended | |||||||||||||||
Feb. 22, 2015 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Earnings from discontinued operations, net of taxes in our accompanying consolidated statements of earnings are comprised of the following: | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(in millions) | February 22, 2015 | February 23, 2014 | February 22, 2015 | February 23, 2014 | ||||||||||||
Sales | $ | — | $ | 614.5 | $ | 400.4 | $ | 1,805.90 | ||||||||
Total cost of sales | (0.6 | ) | 495 | 324 | 1,457.80 | |||||||||||
Selling, general and administrative (1) | (7.9 | ) | 54.8 | (772.1 | ) | 164.8 | ||||||||||
Depreciation and amortization | — | 32.2 | 0.2 | 95.9 | ||||||||||||
Earnings before income taxes | 8.5 | 32.5 | 848.3 | 87.4 | ||||||||||||
Income tax expense | 3.1 | 9.4 | 322.4 | 22.6 | ||||||||||||
Earnings from discontinued operations, net of tax | $ | 5.4 | $ | 23.1 | $ | 525.9 | $ | 64.8 | ||||||||
-1 | Amounts for the quarter and nine months ended February 22, 2015 include the gain recognized on the sale of Red Lobster. | |||||||||||||||
The following table presents the carrying amounts of the major classes of assets and liabilities classified as held for sale on our accompanying consolidated balance sheets: | ||||||||||||||||
(in millions) | February 22, 2015 | May 25, | ||||||||||||||
2014 | ||||||||||||||||
Current assets | $ | — | $ | 241 | ||||||||||||
Land, buildings and equipment, net | 45.4 | 1,084.80 | ||||||||||||||
Other assets | — | 64.5 | ||||||||||||||
Total assets | $ | 45.4 | $ | 1,390.30 | ||||||||||||
Current liabilities | $ | — | $ | 130.6 | ||||||||||||
Other liabilities | — | 84.9 | ||||||||||||||
Total liabilities | $ | — | $ | 215.5 | ||||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Feb. 22, 2015 | |||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||
Schedule of Cash Flow, Supplemental Disclosures | |||||||||
Nine Months Ended | |||||||||
(in millions) | February 22, 2015 | February 23, 2014 | |||||||
Interest paid, net of amounts capitalized | $ | 107.9 | $ | 66 | |||||
Income taxes paid, net of refunds | 203.7 | 63.5 | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Feb. 22, 2015 | |||||||||||||||||
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 | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
February 22, 2015 | February 23, 2014 | ||||||||||||||||
Weighted-average fair value | $ | 10.59 | $ | 12.05 | |||||||||||||
Dividend yield | 4.5 | % | 4.4 | % | |||||||||||||
Expected volatility of stock | 37.3 | % | 39.6 | % | |||||||||||||
Risk-free interest rate | 2.1 | % | 1.9 | % | |||||||||||||
Expected option life (in years) | 6.5 | 6.4 | |||||||||||||||
Summary Of Darden Stock Unit Activity | The following table presents a summary of our stock-based compensation activity for the nine months ended February 22, 2015: | ||||||||||||||||
(in millions) | Stock | Restricted | Darden | Performance | |||||||||||||
Options | Stock/ | Stock | Stock Units | ||||||||||||||
Restricted | Units | ||||||||||||||||
Stock | |||||||||||||||||
Units | |||||||||||||||||
Outstanding beginning of period | 11.2 | 0.2 | 2.1 | 0.3 | |||||||||||||
Awards granted | 1.2 | — | 0.4 | 0.1 | |||||||||||||
Awards exercised | (2.8 | ) | (0.1 | ) | (0.4 | ) | (0.1 | ) | |||||||||
Awards forfeited | (0.4 | ) | — | (0.7 | ) | (0.2 | ) | ||||||||||
Performance unit adjustment | — | — | — | 0.3 | |||||||||||||
Outstanding end of period | 9.2 | 0.1 | 1.4 | 0.4 | |||||||||||||
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 22, | February 23, | February 22, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Stock options (1) | $ | 2.4 | $ | 3.6 | $ | 17.1 | $ | 15.1 | |||||||||
Restricted stock/restricted stock units (1) | 0.5 | (0.3 | ) | 1.6 | 0.5 | ||||||||||||
Darden stock units | 4.1 | 2.2 | 8.9 | 10.1 | |||||||||||||
Performance stock units (1) | 3.6 | 0.2 | 11.6 | 4.3 | |||||||||||||
Employee stock purchase plan | 0.3 | 0.5 | 1 | 1.4 | |||||||||||||
Director compensation program/other | 0.5 | 0.1 | 1.1 | 1.8 | |||||||||||||
Total stock-based compensation expense | $ | 11.4 | $ | 6.3 | $ | 41.3 | $ | 33.2 | |||||||||
-1 | The increase for the nine months ended February 22, 2015 is primarily attributable to the workforce reduction efforts further discussed in Note 12. |
Net_Earnings_per_Share_Tables
Net Earnings per Share (Tables) | 9 Months Ended | ||||||||||||
Feb. 22, 2015 | |||||||||||||
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 22, | February 23, | February 22, | February 23, | |||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
Anti-dilutive stock options and restricted stock | — | 4.5 | 1.5 | 4.1 | |||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||||||||
Feb. 22, 2015 | ||||||||||||||||||||
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 22, 2015 and February 23, 2014 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 23, 2014 | $ | 0.8 | $ | 0.1 | $ | (23.0 | ) | $ | (57.7 | ) | $ | (79.8 | ) | |||||||
Gain (loss) | (2.0 | ) | — | 1.4 | — | (0.6 | ) | |||||||||||||
Reclassification realized in net earnings | — | — | 1.6 | 1 | 2.6 | |||||||||||||||
Balance at February 22, 2015 | $ | (1.2 | ) | $ | 0.1 | $ | (20.0 | ) | $ | (56.7 | ) | $ | (77.8 | ) | ||||||
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 | ) | ||||||
The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended February 22, 2015 and February 23, 2014 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 May 25, 2014 | $ | (4.7 | ) | $ | 0.1 | $ | (50.4 | ) | $ | (73.1 | ) | $ | (128.1 | ) | ||||||
Gain (loss) | (3.8 | ) | — | 2.1 | 14.6 | 12.9 | ||||||||||||||
Reclassification realized in net earnings | 7.3 | — | 28.3 | 1.8 | 37.4 | |||||||||||||||
Balance at February 22, 2015 | $ | (1.2 | ) | $ | 0.1 | $ | (20.0 | ) | $ | (56.7 | ) | $ | (77.8 | ) | ||||||
Balance 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 | ) | ||||||
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 22, | February 23, | February 22, | February 23, | |||||||||||||||
AOCI Components | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Derivatives | ||||||||||||||||||||
Commodity contracts | -1 | $ | — | $ | 0.6 | — | (0.1 | ) | ||||||||||||
Equity contracts | -2 | — | — | (0.9 | ) | (0.7 | ) | |||||||||||||
Interest rate contracts | Interest, net | (2.5 | ) | (2.6 | ) | (44.4 | ) | (7.8 | ) | |||||||||||
Foreign currency contracts | -2 | — | 0.2 | — | 0.5 | |||||||||||||||
Total before tax | $ | (2.5 | ) | $ | (1.8 | ) | $ | (45.3 | ) | $ | (8.1 | ) | ||||||||
Tax benefit | 0.9 | 0.7 | 17 | 2.8 | ||||||||||||||||
Net of tax | $ | (1.6 | ) | $ | (1.1 | ) | $ | (28.3 | ) | $ | (5.3 | ) | ||||||||
Benefit plan funding position | ||||||||||||||||||||
Recognized net actuarial loss - pension/postretirement plans | -3 | $ | (0.6 | ) | $ | (2.2 | ) | $ | (1.9 | ) | $ | (6.8 | ) | |||||||
Recognized net actuarial loss - other plans | -4 | (1.0 | ) | (0.4 | ) | (1.3 | ) | (1.0 | ) | |||||||||||
Total before tax | $ | (1.6 | ) | $ | (2.6 | ) | $ | (3.2 | ) | $ | (7.8 | ) | ||||||||
Tax benefit | 0.6 | 1 | 1.4 | 3 | ||||||||||||||||
Net of tax | $ | (1.0 | ) | $ | (1.6 | ) | $ | (1.8 | ) | $ | (4.8 | ) | ||||||||
-1 | Primarily included in cost of sales. See Note 9 for additional details. | |||||||||||||||||||
-2 | Primarily included in cost of sales and selling, general and administrative expenses. See Note 9 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 8 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. 22, 2015 | |||||||||||||||||
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 22, | February 23, | February 22, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 0.4 | $ | 1.1 | $ | 0.9 | $ | 3.3 | |||||||||
Interest cost | 2.5 | 2.6 | 7.5 | 7.7 | |||||||||||||
Expected return on plan assets | (3.8 | ) | (4.3 | ) | (11.4 | ) | (12.9 | ) | |||||||||
Recognized net actuarial loss | 0.6 | 2.2 | 1.9 | 6.8 | |||||||||||||
Net periodic benefit (credit) cost | $ | (0.3 | ) | $ | 1.6 | $ | (1.1 | ) | $ | 4.9 | |||||||
Postretirement Benefit Plan | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(in millions) | February 22, | February 23, | February 22, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Service cost | $ | 0.1 | $ | 0.2 | $ | 0.4 | $ | 0.6 | |||||||||
Interest cost | — | 0.4 | 0.8 | 1 | |||||||||||||
Unrecognized prior service cost | (1.6 | ) | — | (1.6 | ) | — | |||||||||||
Recognized net actuarial loss | 0.3 | — | 0.6 | — | |||||||||||||
Net periodic benefit (credit) cost | $ | (1.2 | ) | $ | 0.6 | $ | 0.2 | $ | 1.6 | ||||||||
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Feb. 22, 2015 | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Notional Values Of Derivative Contracts Designated And Not Designated As Hedging Instruments | The notional values and fair value of our derivative contracts are as follows: | ||||||||||||||||||||||||||||
Notional Values | Balance | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||
Sheet | |||||||||||||||||||||||||||||
(in millions) | February 22, | May 25, | Location | February 22, | May 25, | February 22, | May 25, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | $ | — | $ | 0.9 | -1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Equity forwards | 13.6 | 20.6 | -1 | 0.2 | — | — | (0.5 | ) | |||||||||||||||||||||
Interest rate related | 200 | 200 | -1 | 2.2 | 1.6 | — | — | ||||||||||||||||||||||
Foreign currency forwards | — | 0.3 | -1 | — | 0.1 | — | — | ||||||||||||||||||||||
$ | 2.4 | $ | 1.7 | $ | — | $ | (0.5 | ) | |||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Equity forwards | $ | 49.6 | $ | 47.4 | -1 | 0.6 | — | — | (1.2 | ) | |||||||||||||||||||
$ | 0.6 | $ | — | $ | — | $ | (1.2 | ) | |||||||||||||||||||||
Total derivative contracts | $ | 3 | $ | 1.7 | $ | — | $ | (1.7 | ) | ||||||||||||||||||||
-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. | ||||||||||||||||||||||||||||
Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments | |||||||||||||||||||||||||||||
Notional Values | Balance | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||
Sheet | |||||||||||||||||||||||||||||
(in millions) | February 22, | May 25, | Location | February 22, | May 25, | February 22, | May 25, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Derivative contracts designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity contracts | $ | — | $ | 0.9 | -1 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Equity forwards | 13.6 | 20.6 | -1 | 0.2 | — | — | (0.5 | ) | |||||||||||||||||||||
Interest rate related | 200 | 200 | -1 | 2.2 | 1.6 | — | — | ||||||||||||||||||||||
Foreign currency forwards | — | 0.3 | -1 | — | 0.1 | — | — | ||||||||||||||||||||||
$ | 2.4 | $ | 1.7 | $ | — | $ | (0.5 | ) | |||||||||||||||||||||
Derivative contracts not designated as hedging instruments | |||||||||||||||||||||||||||||
Equity forwards | $ | 49.6 | $ | 47.4 | -1 | 0.6 | — | — | (1.2 | ) | |||||||||||||||||||
$ | 0.6 | $ | — | $ | — | $ | (1.2 | ) | |||||||||||||||||||||
Total derivative contracts | $ | 3 | $ | 1.7 | $ | — | $ | (1.7 | ) | ||||||||||||||||||||
-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 22, | February 23, | February 22, | February 23, | February 22, | February 23, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Commodity | $ | — | $ | 1.2 | -2 | $ | — | $ | 0.6 | -2 | $ | — | $ | — | |||||||||||||||
Equity | 1.4 | (2.1 | ) | -3 | — | — | -3 | 0.2 | 0.4 | ||||||||||||||||||||
Interest rate | — | — | Interest, net | (2.5 | ) | (2.6 | ) | Interest, net | — | — | |||||||||||||||||||
Foreign currency | — | 0.4 | -4 | — | 0.2 | -4 | — | — | |||||||||||||||||||||
$ | 1.4 | $ | (0.5 | ) | $ | (2.5 | ) | $ | (1.8 | ) | $ | 0.2 | $ | 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 22, | February 23, | February 22, | February 23, | February 22, | February 23, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Commodity | $ | — | $ | 0.9 | -2 | $ | — | $ | (0.1 | ) | -2 | $ | — | $ | — | ||||||||||||||
Equity | 2.1 | (2.5 | ) | -3 | (0.9 | ) | (0.7 | ) | -3 | 0.8 | 1 | ||||||||||||||||||
Interest rate | — | — | Interest, net | (44.4 | ) | (7.8 | ) | Interest, net | — | — | |||||||||||||||||||
Foreign currency | — | 0.6 | -4 | — | 0.5 | -4 | — | — | |||||||||||||||||||||
$ | 2.1 | $ | (1.0 | ) | $ | (45.3 | ) | $ | (8.1 | ) | $ | 0.8 | $ | 1 | |||||||||||||||
-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 22, | February 23, | February 22, | February 23, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
Interest rate | $ | 0.1 | $ | 0.7 | Interest, net | Fixed-rate debt | $ | (0.1 | ) | $ | (0.7 | ) | Interest, net | ||||||||||||||||
(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 22, | February 23, | February 22, | February 23, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
Interest rate | $ | 0.6 | $ | (0.7 | ) | Interest, net | Fixed-rate debt | $ | (0.6 | ) | $ | 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) Recognized | Amount of Gain (Loss) Recognized in Earnings | ||||||||||||||||||||||||||||
in Earnings on Derivatives | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
February 22, 2015 | February 23, 2014 | February 22, 2015 | February 23, 2014 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Commodity contracts | Cost of Sales (1) | $ | — | $ | 0.5 | $ | — | $ | 0.1 | ||||||||||||||||||||
Equity forwards | Cost of Sales (2) | 1.7 | (0.6 | ) | 2.9 | (0.3 | ) | ||||||||||||||||||||||
Equity forwards | Selling, General and Administrative | 3.9 | (1.6 | ) | 6.7 | (0.6 | ) | ||||||||||||||||||||||
$ | 5.6 | $ | (1.7 | ) | $ | 9.6 | $ | (0.8 | ) | ||||||||||||||||||||
-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. 22, 2015 | |||||||||||||||||||
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 22, 2015 and May 25, 2014: | ||||||||||||||||||
Items Measured at Fair Value at February 22, 2015 | |||||||||||||||||||
(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 | ) | $ | 2.3 | $ | — | $ | 2.3 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 5 | 5 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 1.5 | — | 1.5 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Equity forwards | (3 | ) | 0.8 | — | 0.8 | — | |||||||||||||
Interest rate swaps | (4 | ) | 2.2 | — | 2.2 | — | |||||||||||||
Total | $ | 11.8 | $ | 5 | $ | 6.8 | $ | — | |||||||||||
Items Measured at Fair Value at May 25, 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 | ) | $ | 9.7 | $ | — | $ | 9.7 | $ | — | |||||||||
U.S. Treasury securities | (2 | ) | 6.1 | 6.1 | — | — | |||||||||||||
Mortgage-backed securities | (1 | ) | 2.6 | — | 2.6 | — | |||||||||||||
Derivatives: | |||||||||||||||||||
Equity forwards | (3 | ) | (1.7 | ) | — | (1.7 | ) | — | |||||||||||
Interest rate locks & swaps | (4 | ) | 1.6 | — | 1.6 | — | |||||||||||||
Foreign currency forwards | (5 | ) | 0.1 | — | 0.1 | — | |||||||||||||
Total | $ | 18.4 | $ | 6.1 | $ | 12.3 | $ | — | |||||||||||
-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 equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. | ||||||||||||||||||
-4 | 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. | ||||||||||||||||||
-5 | The fair value of our foreign currency forward contracts is based on closing forward exchange market prices, inclusive of the risk of nonperformance. |
Workforce_Reduction_Costs_Tabl
Workforce Reduction Costs (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Feb. 22, 2015 | |||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | In accordance with these actions, we incurred employee termination benefits costs and other costs which are included in selling, general and administrative expenses in our consolidated statements of earnings for the quarters and nine months ended February 22, 2015 and February 23, 2014 as follows: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
(in millions) | February 22, | February 23, | February 22, | February 23, | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
Employee termination benefits (1) | $ | 0.7 | $ | 0.3 | $ | 27.7 | $ | 11.2 | |||||||||||||||||||||
Other (2) | — | (0.1 | ) | 0.4 | 0.7 | ||||||||||||||||||||||||
Total | $ | 0.7 | $ | 0.2 | $ | 28.1 | $ | 11.9 | |||||||||||||||||||||
-1 | Includes salary and stock-based compensation expense. | ||||||||||||||||||||||||||||
-2 | Includes postemployment medical, outplacement and relocation costs. | ||||||||||||||||||||||||||||
The following table summarizes the accrued employee termination benefits and other costs which are primarily included in other current liabilities on our consolidated balance sheet as of February 22, 2015: | |||||||||||||||||||||||||||||
(in millions) | September | January | May | November | Payments | Adjustments | Balance at February 22, 2015 | ||||||||||||||||||||||
2013 Plan | 2014 Plan | 2014 Plan | 2014 Plan | ||||||||||||||||||||||||||
Employee termination benefits (1) | $ | 7.7 | $ | 0.7 | $ | 5 | $ | 17.2 | $ | (17.3 | ) | $ | 0.4 | $ | 13.7 | ||||||||||||||
Other | 0.8 | 0.1 | 0.2 | 0.4 | (1.1 | ) | (0.2 | ) | 0.2 | ||||||||||||||||||||
Total | $ | 8.5 | $ | 0.8 | $ | 5.2 | $ | 17.6 | $ | (18.4 | ) | $ | 0.2 | $ | 13.9 | ||||||||||||||
-1 | Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. |
Basis_of_Presentation_Details
Basis of Presentation (Details) (Red Lobster) | 0 Months Ended | 3 Months Ended |
15-May-14 | 25-May-14 | |
Restaurant | Restaurant | |
Red Lobster | ||
Significant Acquisitions and Disposals [Line Items] | ||
Number of synergy restaurants closed | 2 | 2 |
Dispositions_Details
Dispositions (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Aug. 24, 2014 | Jul. 28, 2014 | 15-May-14 | 25-May-14 | Feb. 22, 2015 |
Restaurant | Restaurant | Restaurant | Restaurant | property | |
location | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of stand-alone Olive Garden restaurants | 4 | ||||
Red Lobster | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of restaurants sold | 705 | ||||
Number of properties subject to landlord consents and other contractual requirements | 17 | ||||
Proceeds from divestiture of businesses | $2,080 | ||||
Locations that share land parcel with another Darden brand | 19 | ||||
Number of synergy restaurants closed | 2 | 2 | |||
Number of synergy restaurants | 6 | ||||
Disposal transaction related costs | 29.3 | ||||
Gain on sale of discontinued operation | 825.9 | ||||
Properties Subject to Contractual Requirements | Red Lobster | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of businesses | $53.20 |
Dispositions_Income_Statement_
Dispositions Income Statement Disclosure (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Sales | $0 | $614.50 | $400.40 | $1,805.90 | ||||
Total cost of sales | -0.6 | 495 | 324 | 1,457.80 | ||||
Selling, general and administrative | -7.9 | [1] | 54.8 | [1] | -772.1 | [1] | 164.8 | [1] |
Depreciation and amortization | 0 | 32.2 | 0.2 | 95.9 | ||||
Earnings before income taxes | 8.5 | 32.5 | 848.3 | 87.4 | ||||
Income tax expense | 3.1 | 9.4 | 322.4 | 22.6 | ||||
Earnings from discontinued operations, net of tax | $5.40 | $23.10 | $525.90 | $64.80 | ||||
[1] | Amounts for the quarter and nine months ended February 22, 2015 include the gain recognized on the sale of Red Lobster. |
Dispositions_Balance_Sheet_Dis
Dispositions Balance Sheet Disclosure (Details) (USD $) | Feb. 22, 2015 | 25-May-14 |
In Millions, unless otherwise specified | ||
Discontinued Operations and Disposal Groups [Abstract] | ||
Current assets | $0 | $241 |
Land, buildings and equipment, net | 45.4 | 1,084.80 |
Other assets | 0 | 64.5 |
Total assets | 45.4 | 1,390.30 |
Current liabilities | 0 | 130.6 |
Other liabilities | 0 | 84.9 |
Total liabilities | $0 | $215.50 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 |
Supplemental Cash Flow Information [Line Items] | ||
Interest paid, net of amounts capitalized | $107.90 | $66 |
Income taxes paid, net of refunds | 203.7 | 63.5 |
Long-term Debt | ||
Supplemental Cash Flow Information [Line Items] | ||
Extinguishment of debt, accrued interest | $12.80 |
StockBased_Compensation_Option
Stock-Based Compensation (Option Pricing Assumptions) (Details) (Stock Options, USD $) | 9 Months Ended | |
Feb. 22, 2015 | Feb. 23, 2014 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average fair value (in dollars per share) | $10.59 | $12.05 |
Dividend yield | 4.50% | 4.40% |
Expected volatility of stock | 37.30% | 39.60% |
Risk-free interest rate | 2.10% | 1.90% |
Expected option life (in years) | 6 years 6 months | 6 years 5 months |
StockBased_Compensation_Share_
Stock-Based Compensation (Share Activity) (Details) | 9 Months Ended | ||
Feb. 22, 2015 | Feb. 23, 2014 | Jul. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Awards exercised | -2,800,000 | -1,400,000 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding beginning of period | 11,200,000 | ||
Awards granted | 1,200,000 | ||
Awards exercised | -2,800,000 | ||
Awards forfeited | -400,000 | ||
Outstanding end of period | 9,200,000 | ||
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 | 200,000 | ||
Awards granted | 0 | ||
Awards exercised | -100,000 | ||
Awards forfeited | 0 | ||
Performance unit adjustment | 0 | ||
Outstanding end of period | 100,000 | ||
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 | 2,100,000 | ||
Awards granted | 400,000 | ||
Awards exercised | -400,000 | ||
Awards forfeited | -700,000 | ||
Performance unit adjustment | 0 | ||
Outstanding end of period | 1,400,000 | ||
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 | 300,000 | 23,700 | |
Awards granted | 100,000 | ||
Awards exercised | -100,000 | ||
Awards forfeited | -200,000 | ||
Performance unit adjustment | 300,000 | ||
Outstanding end of period | 400,000 | 23,700 |
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. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | $11.40 | $6.30 | $41.30 | $33.20 | ||||
Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | 2.4 | [1] | 3.6 | [1] | 17.1 | [1] | 15.1 | [1] |
Restricted Stock/ Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | 0.5 | [1] | -0.3 | [1] | 1.6 | [1] | 0.5 | [1] |
Darden Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | 4.1 | 2.2 | 8.9 | 10.1 | ||||
Performance stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | 3.6 | [1] | 0.2 | [1] | 11.6 | [1] | 4.3 | [1] |
Employee stock purchase plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | 0.3 | 0.5 | 1 | 1.4 | ||||
Director Compensation Program Other | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total stock-based compensation expense | $0.50 | $0.10 | $1.10 | $1.80 | ||||
[1] | The increase for the nine months ended February 22, 2015 is primarily attributable to the workforce reduction efforts further discussed in Note 12. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 12.70% | 2.80% | -60.50% | 4.20% |
Effective income tax rate, excluding debt extinguishment costs and debt extinguishment tax benefit (as a percent) | 19.50% | |||
Tax position, change is reasonably possible in the next twelve months | $30 | $30 |
Net_Earnings_per_Share_Details
Net Earnings per Share (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock options and restricted stock | 0 | 4.5 | 1.5 | 4.1 |
Stockholders_Equity_Narrative_
Stockholders' Equity Narrative (Details) (Accelerated Share Repurchase Program, USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Oct. 01, 2014 | Dec. 31, 2014 | Aug. 31, 2014 | Feb. 22, 2015 | Jul. 31, 2014 |
Accelerated Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Share repurchase program, authorized amount | $500 | ||||
Payments For Accelerated Share Repurchase Program | $500 | ||||
Stock to be repurchased and retired | 8.6 | 1.3 | |||
Accelerated share repurchases, price paid per share | $50.12 |
Stockholders_Equity_Schedule_o
Stockholders' Equity (Schedule of Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | ($79.80) | ($127.90) | ($128.10) | ($132.80) |
Gain (loss) | -0.6 | -2.8 | 12.9 | -5.3 |
Reclassification realized in net earnings | 2.6 | 2.7 | 37.4 | 10.1 |
Ending Balance | -77.8 | -128 | -77.8 | -128 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 0.8 | -3.7 | -4.7 | -1.8 |
Gain (loss) | -2 | -1.7 | -3.8 | -3.6 |
Reclassification realized in net earnings | 0 | 0 | 7.3 | 0 |
Ending Balance | -1.2 | -5.4 | -1.2 | -5.4 |
Unrealized Gains (Losses) on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 0.1 | 0.1 | 0.1 | 0.2 |
Gain (loss) | 0 | 0 | 0 | -0.1 |
Reclassification realized in net earnings | 0 | 0 | 0 | 0 |
Ending Balance | 0.1 | 0.1 | 0.1 | 0.1 |
Unrealized Gains (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | -23 | -50.1 | -50.4 | -53.8 |
Gain (loss) | 1.4 | -1.1 | 2.1 | -1.6 |
Reclassification realized in net earnings | 1.6 | 1.1 | 28.3 | 5.3 |
Ending Balance | -20 | -50.1 | -20 | -50.1 |
Benefit Plan Funding Position | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | -57.7 | -74.2 | -73.1 | -77.4 |
Gain (loss) | 0 | 0 | 14.6 | 0 |
Reclassification realized in net earnings | 1 | 1.6 | 1.8 | 4.8 |
Ending Balance | ($56.70) | ($72.60) | ($56.70) | ($72.60) |
Stockholders_Equity_Schedule_o1
Stockholders' Equity (Schedule of Reclassification Adjustments out of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | ($1,342.30) | ($1,265.80) | ($3,894.60) | ($3,674.40) | ||||
Selling, general and administrative | -134.2 | -154.2 | -484.6 | -494.3 | ||||
Interest, net | -23.3 | -33.1 | -168.3 | -98.8 | ||||
Earnings before income taxes | 147.1 | 89.1 | 48.8 | 140.8 | ||||
Tax benefit | -18.7 | -2.5 | 29.5 | -5.9 | ||||
Net earnings | 133.8 | 109.7 | 604.2 | 199.7 | ||||
Derivatives | Amount Reclassified from AOCI into Net Earnings | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Earnings before income taxes | -2.5 | -1.8 | -45.3 | -8.1 | ||||
Tax benefit | 0.9 | 0.7 | 17 | 2.8 | ||||
Net earnings | -1.6 | -1.1 | -28.3 | -5.3 | ||||
Derivatives | Commodity | Amount Reclassified from AOCI into Net Earnings | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Cost of sales | 0 | [1] | 0.6 | [1] | 0 | [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] | -0.9 | [2] | -0.7 | [2] |
Derivatives | Interest rate related | Amount Reclassified from AOCI into Net Earnings | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Interest, net | -2.5 | -2.6 | -44.4 | -7.8 | ||||
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] | 0.2 | [2] | 0 | [2] | 0.5 | [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 | -1.6 | -2.6 | -3.2 | -7.8 | ||||
Tax benefit | 0.6 | 1 | 1.4 | 3 | ||||
Net earnings | -1 | -1.6 | -1.8 | -4.8 | ||||
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 | -0.6 | [3] | -2.2 | [3] | -1.9 | [3] | -6.8 | [3] |
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 | ($1) | [4] | ($0.40) | [4] | ($1.30) | ($1) | ||
[1] | Primarily included in cost of sales. See Note 9 for additional details. | |||||||
[2] | Primarily included in cost of sales and selling, general and administrative expenses. See Note 9 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 8 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. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | Nov. 23, 2014 |
Defined Benefit Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | $0.40 | $1.10 | $0.90 | $3.30 | |
Interest cost | 2.5 | 2.6 | 7.5 | 7.7 | |
Expected return on plan assets | -3.8 | -4.3 | -11.4 | -12.9 | |
Recognized net actuarial loss | 0.6 | 2.2 | 1.9 | 6.8 | |
Net periodic benefit (credit) cost | -0.3 | 1.6 | -1.1 | 4.9 | |
Postretirement Benefit Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Service cost | 0.1 | 0.2 | 0.4 | 0.6 | |
Interest cost | 0 | 0.4 | 0.8 | 1 | |
Unrecognized prior service cost | -1.6 | 0 | -1.6 | 0 | |
Recognized net actuarial loss | 0.3 | 0 | 0.6 | 0 | |
Net periodic benefit (credit) cost | -1.2 | 0.6 | 0.2 | 1.6 | |
Defined Benefit Plan, effect of plan amendment on accumulated benefit obligation | -23.7 | ||||
Defined Benefit Plan, future amortization of prior service cost (credit) | ($3.40) |
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Derivative [Line Items] | ||||
Ineffective portion of interest rate hedge | $0 | |||
Reduction to interest expense related to net swap settlements | -500,000 | -500,000 | 2,300,000 | 1,600,000 |
Amount of gain (loss) reclassified from AOCI to earnings (effective portion) | -4,700,000 | |||
Darden Stock Units | Forward contracts | ||||
Derivative [Line Items] | ||||
Forward contract indexed to issuer's equity, indexed shares | 0.8 | 0.8 | ||
Darden Stock Units | Minimum | ||||
Derivative [Line Items] | ||||
Vesting period | 4 years | |||
Common stock at forward contract rate (in dollars per share) | $31.19 | |||
Darden Stock Units | Maximum | ||||
Derivative [Line Items] | ||||
Vesting period | 5 years | |||
Common stock at forward contract rate (in dollars per share) | $52.66 | |||
Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | ||||
Derivative [Line Items] | ||||
Forward contract indexed to issuer's equity, indexed shares | 0.2 | 0.2 | ||
Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | Minimum | ||||
Derivative [Line Items] | ||||
Common stock at forward contract rate (in dollars per share) | $46.17 | |||
Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | Maximum | ||||
Derivative [Line Items] | ||||
Common stock at forward contract rate (in dollars per share) | $51.95 | |||
4.500% Senior Notes Due October 2021 | Senior Notes | ||||
Derivative [Line Items] | ||||
Fair value of debt | 100,000,000 | 100,000,000 | ||
Face amount of debt | 121,900,000 | 121,900,000 | ||
Interest rate of debt | 4.50% | 4.50% | ||
6.200% Senior Notes Due October 2017 | Senior Notes | ||||
Derivative [Line Items] | ||||
Fair value of debt | 100,000,000 | 100,000,000 | ||
Face amount of debt | 500,000,000 | 500,000,000 | ||
Interest rate of debt | 6.20% | 6.20% | ||
Interest rate swaps | 5.625% Senior Notes Due October 2012 | Senior Notes | ||||
Derivative [Line Items] | ||||
Notional value of derivative instrument | $200,000,000 | $200,000,000 |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging Activities (Notional Values Of Derivative Contracts Designated And Not Designated As Hedging Instruments) (Details) (USD $) | Feb. 22, 2015 | 25-May-14 |
In Millions, unless otherwise specified | ||
Designated as Hedging Instruments | Commodities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | $0 | $0.90 |
Designated as Hedging Instruments | Equity forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | 13.6 | 20.6 |
Designated as Hedging Instruments | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | 200 | 200 |
Designated as Hedging Instruments | Foreign currency | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | 0 | 0.3 |
Not Designated as Hedging Instruments | Equity forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | $49.60 | $47.40 |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging Activities (Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments) (Details) (USD $) | Feb. 22, 2015 | 25-May-14 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | $3 | $1.70 | ||
Derivative contracts, Derivative Liabilities | 0 | -1.7 | ||
Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 2.4 | 1.7 | ||
Derivative contracts, Derivative Liabilities | 0 | -0.5 | ||
Designated as Hedging Instruments | Commodity contracts | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 0 | [1] | 0 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | 0 | [1] |
Designated as Hedging Instruments | Equity forwards | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 0.2 | [1] | 0 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | -0.5 | [1] |
Designated as Hedging Instruments | Interest rate related | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 2.2 | [1] | 1.6 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | 0 | [1] |
Designated as Hedging Instruments | Foreign currency | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 0 | [1] | 0.1 | [1] |
Derivative contracts, Derivative Liabilities | 0 | [1] | 0 | [1] |
Not Designated as Hedging Instruments | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 0.6 | 0 | ||
Derivative contracts, Derivative Liabilities | 0 | -1.2 | ||
Not Designated as Hedging Instruments | Equity forwards | ||||
Derivative [Line Items] | ||||
Derivative contracts, Derivative Assets | 0.6 | [1] | 0 | [1] |
Derivative contracts, Derivative Liabilities | $0 | [1] | ($1.20) | [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. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | $1.40 | ($0.50) | $2.10 | ($1) | ||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | -2.5 | -1.8 | -45.3 | -8.1 | ||||
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | 0.2 | [1] | 0.4 | [1] | 0.8 | [1] | 1 | [1] |
Commodity | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | 0 | [2] | 1.2 | [2] | 0 | [2] | 0.9 | [2] |
Commodity | Cost of Sales | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | 0 | [2] | 0.6 | [2] | 0 | [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) | 1.4 | [3] | -2.1 | [3] | 2.1 | [3] | -2.5 | [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] | -0.9 | [3] | -0.7 | [3] |
Amount of Gain (Loss) Recognized in Earnings (ineffective portion) | 0.2 | [1],[3] | 0.4 | [1],[3] | 0.8 | [1],[3] | 1 | [1],[3] |
Interest rate related | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in AOCI (effective portion) | 0 | 0 | 0 | 0 | ||||
Interest rate related | Interest, Net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (effective portion) | -2.5 | -2.6 | -44.4 | -7.8 | ||||
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] | 0.4 | [4] | 0 | [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 | [4] | 0.2 | [4] | 0 | [4] | 0.5 | [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. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Interest, Net | Fair Value Hedging | Interest rate related | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $0.10 | $0.70 | $0.60 | ($0.70) |
Amount of Gain (Loss) Recognized in Earnings on Related Hedged Item | ($0.10) | ($0.70) | ($0.60) | $0.70 |
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. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | ||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Earnings | $5.60 | ($1.70) | $9.60 | ($0.80) | ||||
Commodity contracts | Cost of Sales | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Earnings | 0 | [1] | 0.5 | [1] | 0 | [1] | 0.1 | [1] |
Equity forwards | Cost of Sales | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Earnings | 1.7 | [2] | -0.6 | [2] | 2.9 | [2] | -0.3 | [2] |
Equity forwards | Selling, General and Administrative | ||||||||
Derivative [Line Items] | ||||||||
Amount of Gain (Loss) Recognized in Earnings | $3.90 | ($1.60) | $6.70 | ($0.60) | ||||
[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. 22, 2015 | 25-May-14 | ||
In Millions, unless otherwise specified | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Total | $11.80 | $18.40 | ||
Equity forwards | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0.8 | [1] | -1.7 | [1] |
Interest rate swaps | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 2.2 | [2] | 1.6 | [2] |
Foreign currency forwards | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0.1 | [3] | ||
Corporate bonds | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 2.3 | [4] | 9.7 | [4] |
U.S. Treasury securities | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 5 | [5] | 6.1 | [5] |
Mortgage-backed securities | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 1.5 | [4] | 2.6 | [4] |
Quoted prices in active market for identical assets (liabilities) (Level 1) | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Total | 5 | 6.1 | ||
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 | 0 | [1] | 0 | [1] |
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 | 0 | [2] | 0 | [2] |
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 | 0 | [3] | ||
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 | 0 | [4] | 0 | [4] |
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 | 5 | [5] | 6.1 | [5] |
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 | 0 | [4] | 0 | [4] |
Significant other observable inputs (Level 2) | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Total | 6.8 | 12.3 | ||
Significant other observable inputs (Level 2) | Equity forwards | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0.8 | [1] | -1.7 | [1] |
Significant other observable inputs (Level 2) | Interest rate swaps | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 2.2 | [2] | 1.6 | [2] |
Significant other observable inputs (Level 2) | Foreign currency forwards | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0.1 | [3] | ||
Significant other observable inputs (Level 2) | Corporate bonds | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 2.3 | [4] | 9.7 | [4] |
Significant other observable inputs (Level 2) | U.S. Treasury securities | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 0 | [5] | 0 | [5] |
Significant other observable inputs (Level 2) | Mortgage-backed securities | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 1.5 | [4] | 2.6 | [4] |
Significant unobservable inputs (Level 3) | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Total | 0 | 0 | ||
Significant unobservable inputs (Level 3) | Equity forwards | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0 | [1] | 0 | [1] |
Significant unobservable inputs (Level 3) | Interest rate swaps | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0 | [2] | 0 | [2] |
Significant unobservable inputs (Level 3) | Foreign currency forwards | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Derivatives | 0 | [3] | ||
Significant unobservable inputs (Level 3) | Corporate bonds | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 0 | [4] | 0 | [4] |
Significant unobservable inputs (Level 3) | U.S. Treasury securities | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | 0 | [5] | 0 | [5] |
Significant unobservable inputs (Level 3) | Mortgage-backed securities | ||||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||||
Fixed-income securities | $0 | [4] | $0 | [4] |
[1] | The fair value of our equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. | |||
[2] | 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. | |||
[3] | The fair value of our foreign currency forward contracts is based on closing forward exchange market prices, inclusive of the risk of nonperformance. | |||
[4] | 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. | |||
[5] | The fair value of our U.S. Treasury securities is based on closing market prices. |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt) (Details) (USD $) | Feb. 22, 2015 | 25-May-14 |
In Billions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ||
Carrying value of long-term debt | $1.48 | $2.50 |
Fair value of long-term debt | $1.57 | $2.63 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 9 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Jul. 31, 2013 | Sep. 30, 2013 | 25-May-14 |
plaintiff | plaintiff | |||
Loss Contingencies [Line Items] | ||||
Description of lessor leasing arrangement, operating leases | fiscal 2015 through fiscal 2044 | |||
Alequin v. Darden Restaurants, Inc. | ||||
Loss Contingencies [Line Items] | ||||
Number of original opt-In notices distributed | 217,000 | |||
Number of plaintiffs | 20,225 | |||
ChHab v. Darden Restaurants, Inc. | ||||
Loss Contingencies [Line Items] | ||||
Number of original opt-In notices distributed | 3,200 | |||
Number of plaintiffs | 541 | |||
Workers Compensation and General Liabilities Accrued | ||||
Loss Contingencies [Line Items] | ||||
Standby letters of credit | 124.2 | $113.50 | ||
Operating Lease Obligation | ||||
Loss Contingencies [Line Items] | ||||
Standby letters of credit | 14.1 | 17.8 | ||
Property Lease Guarantee | ||||
Loss Contingencies [Line Items] | ||||
Guarantees associated with leased properties | 143.3 | 3.4 | ||
Fair value of potential payments discounted at pre-tax cost of capital related to guarantee obligations | 109.7 | $2.70 |
Workforce_Reduction_Costs_Sell
Workforce Reduction Costs - Selling, General and Administrative Expenses (Details) (Selling, General and Administrative, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 | ||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | $0.70 | $0.20 | $28.10 | $11.90 | ||||
Employee termination benefits | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | 0.7 | [1] | 0.3 | [1] | 27.7 | [1] | 11.2 | [1] |
Other | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Charges | $0 | [2] | ($0.10) | [2] | $0.40 | [2] | $0.70 | [2] |
[1] | Includes salary and stock-based compensation expense. | |||||||
[2] | Includes postemployment medical, outplacement and relocation costs. |
Workforce_Reduction_Costs_Othe
Workforce Reduction Costs - Other Current Liabilities (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 22, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Payments | ($18.40) | |
Adjustments | 0.2 | |
Balance at February 22, 2015 | 13.9 | |
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 | |
May 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 5.2 | |
November 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 17.6 | |
Additional restructuring charges | 0.5 | |
Employee termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments | -17.3 | [1] |
Adjustments | 0.4 | [1] |
Balance at February 22, 2015 | 13.7 | [1] |
Employee termination benefits | September 2013 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 7.7 | [1] |
Employee termination benefits | January 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0.7 | [1] |
Employee termination benefits | May 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 5 | [1] |
Employee termination benefits | November 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 17.2 | [1] |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Payments | -1.1 | |
Adjustments | -0.2 | |
Balance at February 22, 2015 | 0.2 | |
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 | 0.1 | |
Other | May 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | 0.2 | |
Other | November 2014 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $0.40 | |
[1] | Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. |
Special_Charges_Details
Special Charges (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Feb. 22, 2015 |
Other Income and Expenses [Abstract] | |
Professional fees | $12.60 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 9 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $91.30 | $0 | |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | 1,010 | ||
Loss on extinguishment of debt | 91.3 | 0.8 | |
Expense (benefit) for cash components for repurchase premiums and make-whole amountsnguishment costs | 44 | -0.4 | |
Non-cash charges on extinguishment of debt | 47.3 | 1.2 | |
Long-term Debt | 7.125% Senior Note due February 2016 | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | 100 | ||
Interest rate of debt | 7.13% | 7.13% | |
Senior Notes | 4.500% Senior Notes Due October 2021 | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | 278.1 | ||
Interest rate of debt | 4.50% | 4.50% | |
Senior Notes | 3.350% Senior Note due November 2022 | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | 338.9 | ||
Interest rate of debt | 3.35% | 3.35% | |
Senior Notes | 3.790% Senior Notes Due August 2019 | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | 80 | ||
Interest rate of debt | 3.79% | 3.79% | |
Senior Notes | 4.520% Senior Notes Due August 2024 | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt, amount | $210 | ||
Interest rate of debt | 4.52% | 4.52% |
Asset_Impairment_Net_Details
Asset Impairment, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2015 | Feb. 23, 2014 | Feb. 22, 2015 | Feb. 23, 2014 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset impairment charges | $4.40 | $0 | $51 | $1.20 |
Asset impairment charges, net of tax | 2.7 | 33.4 | 0.7 | |
Olive Garden and Seasons 52 | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Asset impairment charges | $0.30 | $34.10 | ||
Olive Garden | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Number of Restaurants Impaired | 9 | |||
Seasons 52 Restaurant | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Number of Restaurants Impaired | 3 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event, Dividend Declared, USD $) | 0 Months Ended | |
Mar. 18, 2015 | Mar. 18, 2015 | |
Subsequent Event | Dividend Declared | ||
Subsequent Event [Line Items] | ||
Dividend declared date | 18-Mar-15 | |
Cash dividend declared, per share | $0.55 | $0.55 |
Dividend payable date | 1-May-15 | |
Dividends payable date of record | 10-Apr-15 |