Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
May 29, 2016 | Nov. 27, 2015 | |
Document And Entity Information Abstract | ||
Entity Registrant Name | DARDEN RESTAURANTS INC | |
Entity Central Index Key | 940,944 | |
Current Fiscal Year End Date | --05-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | May 29, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 126,215,727 | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filer | No | |
Public Float | $ 6,643,470 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Sales | $ 6,933.5 | $ 6,764 | $ 6,285.6 |
Costs and expenses: | |||
Food and beverage | 2,039.7 | 2,085.1 | 1,892.2 |
Restaurant labor | 2,189.2 | 2,135.6 | 2,017.6 |
Restaurant expenses | 1,163.5 | 1,120.8 | 1,080.7 |
Marketing expenses | 238 | 243.3 | 252.3 |
General and administrative expenses | 384.9 | 430.2 | 413.1 |
Depreciation and amortization | 290.2 | 319.3 | 304.4 |
Impairments and disposal of assets, net | 5.8 | 62.1 | 16.4 |
Total operating costs and expenses | 6,311.3 | 6,396.4 | 5,976.7 |
Operating income | 622.2 | 367.6 | 308.9 |
Interest, net | 172.5 | 192.3 | 134.3 |
Earnings before income taxes | 449.7 | 175.3 | 174.6 |
Income tax expense (benefit) | 90 | (21.1) | (8.6) |
Earnings from continuing operations | 359.7 | 196.4 | 183.2 |
Earnings from discontinued operations, net of tax expense of $3.4, $344.8 and $32.3, respectively | 15.3 | 513.1 | 103 |
Net earnings | $ 375 | $ 709.5 | $ 286.2 |
Basic net earnings per share: | |||
Earnings from continuing operations, basic (in dollars per share) | $ 2.82 | $ 1.54 | $ 1.40 |
Earnings from discontinued operations, basic (in dollars per share) | 0.12 | 4.02 | 0.78 |
Net (loss) earnings, basic (in dollars per share) | 2.94 | 5.56 | 2.18 |
Diluted net earnings per share: | |||
Earnings from continuing operations, diluted (in dollars per share) | 2.78 | 1.51 | 1.38 |
Earnings from discontinued operations, diluted (in dollars per share) | 0.12 | 3.96 | 0.77 |
Net (loss) earnings, diluted (in dollars per share) | $ 2.90 | $ 5.47 | $ 2.15 |
Average number of common shares outstanding: | |||
Basic (shares) | 127.4 | 127.7 | 131 |
Diluted (shares) | 129.3 | 129.7 | 133.2 |
Dividends declared per common share (in dollars per share) | $ 2.1 | $ 2.2 | $ 2.2 |
Consolidated Statements Of Ear3
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Earnings from discontinued operations, tax expense | $ 3.4 | $ 344.8 | $ 32.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Net earnings | $ 375 | $ 709.5 | $ 286.2 |
Other comprehensive income (loss): | |||
Foreign currency adjustment | 0.5 | 3 | (2.9) |
Change in fair value of marketable securities, net of taxes of $0.0, $0.0 and $0.0, respectively | 0 | 0 | (0.1) |
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $14.3, $17.4 and $3.9, respectively | 23 | 31.3 | 3.4 |
Net unamortized gain (loss) arising during period, including amortization of unrecognized net actuarial loss, net of taxes of $(16.0), $4.8 and $2.9, respectively | (23.9) | 7.2 | 4.3 |
Other comprehensive income (loss) | (0.4) | 41.5 | 4.7 |
Total comprehensive income | $ 374.6 | $ 751 | $ 290.9 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Change in fair value of marketable securities, tax | $ 0 | $ 0 | $ 0 |
Change in fair value of derivatives, tax | 14.3 | 17.4 | 3.9 |
Net unamortized gain (loss) arising during period, including amortization of unrecognized net actuarial loss, tax | $ (16) | $ 4.8 | $ 2.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 274.8 | $ 535.9 |
Receivables, net | 64 | 78 |
Inventories | 175.4 | 163.9 |
Prepaid income taxes | 46.1 | 18.9 |
Prepaid expenses and other current assets | 76.4 | 69.4 |
Deferred income taxes | 163.3 | 157.4 |
Assets held for sale | 20.3 | 32.9 |
Total current assets | 820.3 | 1,056.4 |
Land, buildings and equipment, net | 2,041.6 | 3,215.8 |
Goodwill | 872.3 | 872.4 |
Trademarks | 574.6 | 574.6 |
Other assets | 273.8 | 275.5 |
Total assets | 4,582.6 | 5,994.7 |
Current liabilities: | ||
Accounts payable | 241.9 | 198.8 |
Accrued payroll | 135.1 | 141.1 |
Accrued income taxes | 0 | 12.6 |
Other accrued taxes | 49.1 | 51.5 |
Unearned revenues | 360.4 | 328.6 |
Current portion of long-term debt | 0 | 15 |
Other current liabilities | 400.6 | 449.1 |
Total current liabilities | 1,187.1 | 1,196.7 |
Long-term debt, less current portion | 440 | 1,452.3 |
Deferred income taxes | 255.2 | 341.8 |
Deferred rent | 249.7 | 225.9 |
Other liabilities | 498.6 | 444.5 |
Total liabilities | 2,630.6 | 3,661.2 |
Stockholders’ equity: | ||
Common stock and surplus, no par value. Authorized 500.0 shares; issued 127.5 and 127.9 shares, respectively; outstanding 126.2 and 126.7 shares, respectively | 1,502.6 | 1,405.9 |
Preferred stock, no par value. Authorized 25.0 shares; none issued and outstanding | 0 | 0 |
Retained earnings | 547.5 | 1,026 |
Treasury stock, 1.3 and 1.3 shares, at cost, respectively | (7.8) | (7.8) |
Accumulated other comprehensive income (loss) | (87) | (86.6) |
Unearned compensation | (3.3) | (4) |
Total stockholders’ equity | 1,952 | 2,333.5 |
Total liabilities and stockholders’ equity | $ 4,582.6 | $ 5,994.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | May 29, 2016 | May 31, 2015 |
Common stock, authorized (shares) | 500,000,000 | 500,000,000 |
Common stock, issued (shares) | 127,500,000 | 127,900,000 |
Common stock, outstanding (shares) | 126,200,000 | 126,700,000 |
Preferred stock, authorized (shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (shares) | 0 | 0 |
Preferred stock, outstanding (shares) | 0 | 0 |
Treasury stock, shares (shares) | 1,300,000 | 1,300,000 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock And Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation |
Beginning Balance at May. 26, 2013 | $ 2,059.5 | $ 1,207.6 | $ 998.9 | $ (8.1) | $ (132.8) | $ (6.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 286.2 | 286.2 | ||||
Other comprehensive income | 4.7 | 4.7 | ||||
Dividends declared ($2.00 per share, $2.20 per share and $2.20 share) | (288.9) | (288.9) | ||||
Stock option exercises (2.0 shares, 1.8 shares and 4.2 shares) | 50.9 | 50.6 | 0.3 | |||
Stock-based compensation | 26 | 26 | ||||
ESOP note receivable repayments | 0.9 | 0.9 | ||||
Income tax benefits credited to equity | 10.9 | 10.9 | ||||
Repurchases of common stock (1.0 shares, 0.0 shares and 10.0 shares) | (0.5) | (0.1) | (0.4) | |||
Issuance of stock under Employee Stock Purchase Plan and other plans (0.2 shares, 0.2 shares and 0.1 shares) | 7.2 | 7.2 | ||||
Ending Balance at May. 25, 2014 | 2,156.9 | 1,302.2 | 995.8 | (7.8) | (128.1) | (5.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 709.5 | 709.5 | ||||
Other comprehensive income | 41.5 | 41.5 | ||||
Dividends declared ($2.00 per share, $2.20 per share and $2.20 share) | (279.5) | (279.5) | ||||
Stock option exercises (2.0 shares, 1.8 shares and 4.2 shares) | 154.6 | 154.6 | ||||
Stock-based compensation | 26.4 | 26.4 | ||||
ESOP note receivable repayments | 1.2 | 1.2 | ||||
Income tax benefits credited to equity | 18.4 | 18.4 | ||||
Repurchases of common stock (1.0 shares, 0.0 shares and 10.0 shares) | (502.3) | (102.5) | (399.8) | |||
Issuance of stock under Employee Stock Purchase Plan and other plans (0.2 shares, 0.2 shares and 0.1 shares) | 6.8 | 6.8 | ||||
Ending Balance at May. 31, 2015 | 2,333.5 | 1,405.9 | 1,026 | (7.8) | (86.6) | (4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 375 | 375 | ||||
Other comprehensive income | (0.4) | (0.4) | ||||
Dividends declared ($2.00 per share, $2.20 per share and $2.20 share) | (268.2) | (268.2) | ||||
Stock option exercises (2.0 shares, 1.8 shares and 4.2 shares) | 94.4 | 94.4 | ||||
Stock-based compensation | 14.9 | 14.9 | ||||
ESOP note receivable repayments | 0.6 | 0.6 | ||||
Income tax benefits credited to equity | 17.5 | 17.5 | ||||
Repurchases of common stock (1.0 shares, 0.0 shares and 10.0 shares) | (184.8) | (34.9) | (149.9) | |||
Issuance of stock under Employee Stock Purchase Plan and other plans (0.2 shares, 0.2 shares and 0.1 shares) | 4.9 | 4.8 | 0.1 | |||
Separation of Four Corners Property Trust | (435.4) | (435.4) | ||||
Ending Balance at May. 29, 2016 | $ 1,952 | $ 1,502.6 | $ 547.5 | $ (7.8) | $ (87) | $ (3.3) |
Consolidated Statements Of Cha9
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - $ / shares shares in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Cash dividends declared, per share (in dollars per share) | $ 2.1 | $ 2.2 | $ 2.2 |
Stock option exercises, shares | 2.4 | 4.2 | 1.8 |
Repurchases of common stock, shares | 3 | 10 | 0 |
Issuance of stock under Employee Stock Purchase Plan and other plans, shares | 0.2 | 0.1 | 0.2 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Cash flows - operating activities | |||
Net earnings | $ 375 | $ 709.5 | $ 286.2 |
Earnings from discontinued operations, net of tax | (15.3) | (513.1) | (103) |
Adjustments to reconcile net earnings from continuing operations to cash flows: | |||
Depreciation and amortization | 290.2 | 319.3 | 304.4 |
Impairments and disposal of assets, net | 5.8 | 62.1 | 16.4 |
Amortization of loan costs and losses on interest-rate related derivatives | 3.6 | 8.6 | 13.8 |
Stock-based compensation expense | 37.3 | 53.7 | 38.7 |
Change in current assets and liabilities | 13.7 | 76.3 | 0.6 |
Contributions to pension and postretirement plans | (26.5) | (1.5) | (1.4) |
Change in cash surrender value of trust-owned life insurance | 3.3 | (6.5) | (12.2) |
Deferred income taxes | (10.8) | 42 | (44.9) |
Change in deferred rent | 23.8 | 22 | 29.5 |
Change in other assets and liabilities | 5.3 | 3.8 | 18.9 |
Loss on extinguishment of debt | 106.8 | 91.3 | 0 |
Other, net | 8.2 | 6.8 | 8.4 |
Net cash provided by operating activities of continuing operations | 820.4 | 874.3 | 555.4 |
Cash flows - investing activities | |||
Purchases of land, buildings and equipment | (228.3) | (296.5) | (414.8) |
Proceeds from disposal of land, buildings and equipment | 325.2 | 67.9 | 4.4 |
Purchases of marketable securities | 0 | 0 | (3) |
Proceeds from sale of marketable securities | 1.8 | 9.7 | 8.7 |
Purchases of capitalized software and other assets | (23.3) | (16.2) | (31.6) |
Net cash provided by (used in) investing activities of continuing operations | 75.4 | (235.1) | (436.3) |
Cash flows - financing activities | |||
Proceeds from issuance of common stock | 99.3 | 159.7 | 58.1 |
Income tax benefits credited to equity | 17.5 | 18.4 | 10.9 |
Special cash distribution from Four Corners Property Trust | 315 | 0 | 0 |
Dividends paid | (268.2) | (278.9) | (288.3) |
Repurchases of common stock | (184.8) | (502.3) | (0.5) |
ESOP note receivable repayments | 0.6 | 1.2 | 0.9 |
Proceeds from issuance of short-term debt | 0 | 397.4 | 2,616.3 |
Repayments of short-term debt | 0 | (605) | (2,573.2) |
Repayments of long-term debt | (1,096.8) | (1,065.9) | 0 |
Payment of debt issuance costs | 0 | 0 | (1.4) |
Principal payments on capital leases | (3.4) | (2.2) | (2) |
Proceeds from financing lease obligation | 0 | 93.1 | 0 |
Net cash used in financing activities of continuing operations | (1,120.8) | (1,784.5) | (179.2) |
Cash flows - discontinued operations | |||
Net cash provided by (used in) operating activities of discontinued operations | (42.4) | (403.3) | 214.7 |
Net cash provided by (used in) investing activities of discontinued operations | 6.3 | 1,986.2 | (144.5) |
Net cash provided by (used in) discontinued operations | (36.1) | 1,582.9 | 70.2 |
Increase (decrease) in cash and cash equivalents | (261.1) | 437.6 | 10.1 |
Cash and cash equivalents - beginning of year | 535.9 | 98.3 | 88.2 |
Cash and cash equivalents - end of year | 274.8 | 535.9 | 98.3 |
Cash flows from changes in current assets and liabilities | |||
Receivables, net | 14 | 7.8 | (1.5) |
Inventories | (11.8) | 64.5 | (25.6) |
Prepaid expenses and other current assets | (10.8) | 2.9 | 0.5 |
Accounts payable | 45.6 | (20.9) | 27.2 |
Accrued payroll | (5.9) | 23.4 | 7.5 |
Prepaid/accrued income taxes | (21.3) | (13.8) | (21) |
Other accrued taxes | (1.4) | 2.2 | 0 |
Unearned revenues | 46 | 34.9 | 28.8 |
Other current liabilities | (40.7) | (24.7) | (15.3) |
Change in current assets and liabilities | $ 13.7 | $ 76.3 | $ 0.6 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
May 29, 2016 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Operations and Principles of Consolidation The accompanying consolidated financial statements include the operations of Darden Restaurants, Inc. and its wholly owned subsidiaries (Darden, the Company, we, us or our). We own and operate the Olive Garden ® , LongHorn Steakhouse ® , The Capital Grille ® , Yard House ® , Bahama Breeze ® , Seasons 52 ® , and Eddie V's Prime Seafood ® and Wildfish Seafood Grille ® (collectively, "Eddie V's") restaurant brands located in the United States and Canada. Through subsidiaries, we own and operate all of our restaurants in the United States and Canada, except for 6 joint venture restaurants managed by us and 18 franchised restaurants. We also have 32 franchised restaurants in operation located in Latin America, the Middle East and Malaysia. All significant intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation On May 15, 2014, we entered into an agreement to sell Red Lobster and certain related assets and associated liabilities and closed the sale on July 28, 2014. For fiscal 2016 , 2015 and 2014 , all gains and losses on disposition, impairment charges and disposal costs, along with the sales, costs and expenses and income taxes attributable to the discontinued 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 3 for additional information. Unless otherwise noted, amounts and disclosures throughout these notes to consolidated financial statements relate to our continuing operations. Fiscal Year We operate on a 52/53-week fiscal year, which ends on the last Sunday in May. Fiscal 2016 , which ended May 29, 2016 , consisted of 52 weeks. Fiscal 2015 , which ended May 31, 2015 , consisted of 53 weeks and fiscal 2014 , which ended May 25, 2014 , consisted of 52 weeks. Use of Estimates 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 expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents include highly liquid investments such as U.S. Treasury bills, taxable municipal bonds and money market funds that have an original maturity of three months or less. Amounts receivable from credit card companies are also considered cash equivalents because they are both short term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. The components of cash and cash equivalents are as follows: (in millions) May 29, 2016 May 31, 2015 Short-term investments $ 166.7 $ 455.5 Credit card receivables 81.1 77.8 Depository accounts 27.0 2.6 Total Cash and Cash Equivalents $ 274.8 $ 535.9 As of May 29, 2016 , and May 31, 2015 , we had cash and cash equivalent accounts in excess of insured limits. We manage the credit risk of our positions through utilizing multiple financial institutions and monitoring the credit quality of those financial institutions that hold our cash and cash equivalents. Receivables, Net Receivables, net of the allowance for doubtful accounts, represent their estimated net realizable value. Provisions for doubtful accounts are recorded based on historical collection experience and the age of the receivables. Receivables are written off when they are deemed uncollectible. See Note 12. Inventories Inventories consist of food and beverages and are valued at the lower of weighted-average cost or market. Marketable Securities Available-for-sale securities are carried at fair value. Classification of marketable securities as current or noncurrent is dependent upon management’s intended holding period, the security’s maturity date, or both. Unrealized gains and losses, net of tax, on available-for-sale securities are carried in accumulated other comprehensive income (loss) within the consolidated financial statements and are reclassified into earnings when the securities mature or are sold. Land, Buildings and Equipment, Net Land, buildings and equipment are recorded at cost less accumulated depreciation. Building components are depreciated over estimated useful lives ranging from 7 to 40 years using the straight-line method. Leasehold improvements, which are reflected on our consolidated balance sheets as a component of buildings in land, buildings and equipment, net, are amortized over the lesser of the expected lease term, including cancelable option periods, or the estimated useful lives of the related assets using the straight-line method. Equipment is depreciated over estimated useful lives ranging from 2 to 15 years also using the straight-line method. See Note 5 for additional information. Gains and losses on the disposal of land, buildings and equipment are included in impairments and disposal of assets, net, while the write-off of undepreciated book value associated with the replacement of equipment in the normal course of business is recorded as a component of restaurant expenses in our accompanying consolidated statements of earnings. Depreciation and amortization expense from continuing operations associated with buildings and equipment and losses on replacement of equipment were as follows: (in millions) Fiscal Year 2016 2015 2014 Depreciation and amortization on buildings and equipment $ 274.4 $ 305.0 $ 296.3 Losses on replacement of equipment 5.5 5.5 4.4 Capitalized Software Costs and Other Definite-Lived Intangibles Capitalized software, which is a component of other assets, is recorded at cost less accumulated amortization. Capitalized software is amortized using the straight-line method over estimated useful lives ranging from 3 to 10 years. The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 29, 2016 May 31, 2015 Capitalized software $ 169.7 $ 148.0 Accumulated amortization (93.1 ) (80.4 ) Capitalized software, net of accumulated amortization $ 76.6 $ 67.6 We have other definite-lived intangible assets, including assets related to the value of below-market leases resulting from our acquisitions that are included as a component of other assets on our consolidated balance sheets. We also have definite-lived intangible liabilities related to the value of above-market leases resulting from our acquisitions, that are included in other liabilities on our consolidated balance sheets. Definite-lived intangibles are amortized on a straight-line basis over estimated useful lives of 1 to 20 years. The cost and related accumulated amortization was as follows: (in millions) May 29, 2016 May 31, 2015 Other definite-lived intangibles $ 14.2 $ 15.1 Accumulated amortization (7.3 ) (7.3 ) Other definite-lived intangible assets, net of accumulated amortization $ 6.9 $ 7.8 Below-market leases $ 29.2 $ 29.2 Accumulated amortization (13.3 ) (11.5 ) Below-market leases, net of accumulated amortization $ 15.9 $ 17.7 Above-market leases $ (21.4 ) $ (21.4 ) Accumulated amortization 8.3 6.4 Above-market leases, net of accumulated amortization $ (13.1 ) $ (15.0 ) Amortization expense from continuing operations associated with capitalized software and other definite-lived intangibles included in depreciation and amortization in our accompanying consolidated statements of earnings was as follows: (in millions) Fiscal Year 2016 2015 2014 Amortization expense - capitalized software $ 14.9 $ 13.3 $ 7.0 Amortization expense - other definite-lived intangibles 0.9 1.0 1.1 Amortization expense from continuing operations associated with above- and-below-market leases included in restaurant expenses as a component of rent expense in our consolidated statements of earnings was as follows: (in millions) Fiscal Year 2016 2015 2014 Restaurant expense - below-market leases $ 1.8 $ 1.8 $ 1.8 Restaurant expense - above-market leases (1.4 ) (1.4 ) (1.4 ) Amortization of capitalized software and other definite-lived intangible assets will be approximately $17.6 million annually for fiscal 2017 through 2021 . Trust-Owned Life Insurance We have a trust that purchased life insurance policies covering certain of our officers and other key employees (trust-owned life insurance or TOLI). The trust is the owner and sole beneficiary of the TOLI policies. The policies were purchased to offset a portion of our obligations under our non-qualified deferred compensation plan. The cash surrender value for each policy is included in other assets, while changes in cash surrender values are included in general and administrative expenses. Liquor Licenses The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in other assets. Liquor licenses are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Annual liquor license renewal fees are expensed over the renewal term. Goodwill and Trademarks We review our goodwill and trademarks for impairment annually, as of the first day of our fourth fiscal quarter or more frequently if indicators of impairment exist. Goodwill and trademarks are not subject to amortization and have been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. Our goodwill and trademark balances are allocated as follows: Goodwill Trademarks (in millions) May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 Olive Garden (1) $ 30.2 $ 30.2 $ — $ — LongHorn Steakhouse 49.3 49.3 307.8 307.8 The Capital Grille 401.6 401.7 147.0 147.0 Yard House 369.2 369.2 109.3 109.3 Eddie V's 22.0 22.0 10.5 10.5 Total $ 872.3 $ 872.4 $ 574.6 $ 574.6 (1) Goodwill related to Olive Garden is associated with the RARE Hospitality International, Inc. (RARE) acquisition and the estimated value of the direct benefits derived by Olive Garden as a result of the RARE acquisition. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements. The goodwill impairment test involves a two-step process. The first step is a comparison of each reporting unit’s fair value to its carrying value. We estimate fair value using the best information available, including market information and discounted cash flow projections (also referred to as the income approach). The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs and number of units, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. We validate our estimates of fair value under the income approach by comparing the values to fair value estimates using a market approach. A market approach estimates fair value by applying cash flow and sales multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. If the fair value of the reporting unit is higher than its carrying value, goodwill is deemed not to be impaired, and no further testing is required. If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporting unit was being acquired in a business combination. Specifically, fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, we would record an impairment loss for the difference. As part of our process for performing the step one impairment test of goodwill, we estimated the fair value of our reporting units utilizing the income and market approaches described above to derive an enterprise value of the Company. We reconciled the enterprise value to our overall estimated market capitalization. The estimated market capitalization considers recent trends in our market capitalization and an expected control premium, based on comparable recent and historical transactions. Based on the results of the step one impairment test, no impairment of goodwill was indicated for any of our brands. The fair value of trademarks is estimated and compared to the carrying value. We estimate the fair value of trademarks using the relief-from-royalty method, which requires assumptions related to projected sales from our annual long-range plan; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate. We recognize an impairment loss when the estimated fair value of the trademarks is less than carrying value. We completed our impairment test and concluded as of the date of the test, there was no impairment of the trademarks for LongHorn Steakhouse, The Capital Grille, Eddie V's and Yard House. We evaluate the useful lives of our other intangible assets, to determine if they are definite or indefinite-lived. A determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets. Impairment or Disposal of Long-Lived Assets Land, buildings and equipment and certain other assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If such assets are determined to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined based on appraisals, sales prices of comparable assets or discounted future net cash flows expected to be generated by the assets. Restaurant sites and certain other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. Restaurant sites and certain other assets to be disposed of are included in assets held for sale on our consolidated balance sheets when certain criteria are met. These criteria include the requirement that the likelihood of disposing of these assets within one year is probable. Assets not meeting the “held for sale” criteria remain in land, buildings and equipment until their disposal is probable within one year. We account for exit or disposal activities, including restaurant closures, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 420, Exit or Disposal Cost Obligations. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to that liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets, primarily land, associated with a closed restaurant, any gain or loss is recorded in the same caption within our consolidated statements of earnings as the original impairment. Insurance Accruals Through the use of insurance program deductibles and self-insurance, we retain a significant portion of expected losses under our workers’ compensation, certain employee medical and general liability programs. Accrued liabilities have been recorded based on our estimates of the anticipated ultimate costs to settle all claims, both reported and not yet reported. Revenue Recognition Sales, as presented in our consolidated statements of earnings, represents food and beverage product sold and is presented net of discounts, coupons, employee meals and complimentary meals. Revenue from restaurant sales is recognized when food and beverage products are sold. Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis within sales in our consolidated statements of earnings. Revenue from the sale of franchises is recognized as income when substantially all of our material obligations under the franchise agreement have been performed. Continuing royalties, which are a percentage of net sales of franchised restaurants, are accrued as income when earned. Revenue from the sale of consumer packaged goods includes ongoing royalty fees based on a percentage of licensed retail product sales and is recognized upon the sale of product by our licensed manufacturers to retail outlets. Unearned Revenues Unearned revenues represent our liability for gift cards that have been sold but not yet redeemed. We recognize sales from our gift cards when the gift card is redeemed by the customer. Although there are no expiration dates or dormancy fees for our gift cards, based on our analysis of our historical gift card redemption patterns, we can reasonably estimate the amount of gift cards for which redemption is remote, which is referred to as “breakage.” We recognize breakage within sales for unused gift card amounts in proportion to actual gift card redemptions, which is also referred to as the “redemption recognition” method. The estimated value of gift cards expected to remain unused is recognized over the expected period of redemption as the remaining gift card values are redeemed, generally over a period of 10 years. Utilizing this method, we estimate both the amount of breakage and the time period of redemption. If actual redemption patterns vary from our estimates, actual gift card breakage income may differ from the amounts recorded. We update our estimates of our redemption period and our breakage rate periodically and apply that rate to gift card redemptions. Food and Beverage Costs Food and beverage costs include inventory, warehousing, related purchasing and distribution costs, and gains and losses on certain commodity derivative contracts. Vendor allowances received in connection with the purchase of a vendor’s products are recognized as a reduction of the related food and beverage costs as earned. Advance payments are made by the vendors based on estimates of volume to be purchased from the vendors and the terms of the agreement. As we make purchases from the vendors each period, we recognize the pro rata portion of allowances earned as a reduction of food and beverage costs for that period. Differences between estimated and actual purchases are settled in accordance with the terms of the agreements. Vendor agreements are generally for a period of one year or more and payments received are initially recorded as long-term liabilities. Amounts expected to be earned within one year are recorded as current liabilities. Income Taxes We provide for federal and state income taxes currently payable as well as for those deferred because of temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Federal income tax credits are recorded as a reduction of income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. Interest recognized on reserves for uncertain tax positions is included in interest, net, in our consolidated statements of earnings. A corresponding liability for accrued interest is included as a component of other current liabilities on our consolidated balance sheets. Penalties, when incurred, are recognized in general and administrative expenses. ASC Topic 740, Income Taxes, requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not (i.e., a likelihood of more than 50 percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. See Note 13 for additional information. Income tax benefits credited to equity relate to tax benefits associated with amounts that are deductible for income tax purposes but do not affect earnings. These benefits are principally generated from employee exercises of non-qualified stock options and vesting of employee restricted stock awards. Derivative Instruments and Hedging Activities We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as required by FASB ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial derivatives to manage interest rate and compensation risks inherent in our business operations. Our use of derivative instruments is currently limited to equity forwards contracts. These instruments are generally structured as hedges of the variability of cash flows related to forecasted transactions (cash flow hedges). However, we do at times enter into instruments designated as fair value hedges to reduce our exposure to changes in fair value of the related hedged item. We do not enter into derivative instruments for trading or speculative purposes, where changes in the cash flows or fair value of the derivative are not expected to offset changes in cash flows or fair value of the hedged item. However, we have entered into equity forwards to economically hedge changes in the fair value of employee investments in our non-qualified deferred compensation plan. All derivatives are recognized on the balance sheet at fair value. For those derivative instruments for which we intend to elect hedge accounting, on the date the derivative contract is entered into, we document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the consolidated balance sheet or to specific forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. To the extent our derivatives are effective in offsetting the variability of the hedged cash flows, and otherwise meet the cash flow hedge accounting criteria required by Topic 815 of the FASB ASC, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss), net of tax. These changes in fair value will be reclassified into earnings at the time of the forecasted transaction. Ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period in which it occurs. To the extent our derivatives are effective in mitigating changes in fair value, and otherwise meet the fair value hedge accounting criteria required by Topic 815 of the FASB ASC, 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. Cash flows related to derivatives are included in operating activities. See Note 8 for additional information. Leases For operating leases, we recognize rent expense on a straight-line basis over the expected lease term, including cancelable option periods where we are reasonably assured to exercise the options. Differences between amounts paid and amounts expensed are recorded as deferred rent. Capital leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Sale-leasebacks are transactions through which we sell assets (such as restaurant properties) at fair value and subsequently lease them back. The resulting leases generally qualify and are accounted for as operating leases. Financing leases are generally the product of a failed sale-leaseback transaction and result in retention of the "sold" assets within land, buildings and equipment with a financing lease obligation equal to the amount of proceeds received recorded as a component of other liabilities on our consolidated balance sheets. Within the provisions of certain of our leases, there are rent holidays and escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and escalations have been reflected in rent expense on a straight-line basis over the expected lease term. The lease term commences on the date when we have the right to control the use of the leased property, which is typically before rent payments are due under the terms of the lease. Many of our leases have renewal periods totaling 5 to 20 years, exercisable at our option and require payment of property taxes, insurance and maintenance costs in addition to the rent payments. The consolidated financial statements reflect the same lease term for amortizing leasehold improvements as we use to determine capital versus operating lease classifications and in calculating straight-line rent expense for each restaurant. Percentage rent expense is generally based on sales levels and is accrued at the point in time we determine that it is probable that such sales levels will be achieved. Amortization expense related to capital leases is included in depreciation and amortization expense in our consolidated statements of earnings. Landlord allowances are recorded based on contractual terms and are included in accounts receivable, net, and as a deferred rent liability and amortized as a reduction of rent expense on a straight-line basis over the expected lease term. Gains on sale-leaseback transactions are recorded as a deferred liability and amortized as a reduction of rent expense on a straight-line basis over the expected lease term. Pre-Opening Expenses Non-capital expenditures associated with opening new restaurants are expensed as incurred. Advertising Production costs of commercials are charged to operations in the fiscal period the advertising is first aired. The costs of programming and other advertising, promotion and marketing programs are charged to operations in the fiscal period incurred and reported as marketing expenses on our consolidated statements of earnings. Stock-Based Compensation We recognize the cost of employee service received in exchange for awards of equity instruments based on the grant date fair value of those awards. We recognize compensation expense on a straight-line basis over the employee service period for awards granted. We utilize the Black-Scholes option pricing model to estimate the fair value of stock option awards. The dividend yield has been estimated based upon our historical results and expectations for changes in dividend rates. The expected volatility was determined using historical stock prices. The risk-free interest rate was the rate available on zero coupon U.S. government obligations with a term approximating the expected life of each grant. The expected life was estimated based on the exercise history of previous grants, taking into consideration the remaining contractual period for outstanding awards. We utilize a Monte Carlo simulation to estimate the fair value of our market-based equity-settled performance awards. See Note 15 for further information. Net Earnings per Share Basic net earnings per share are computed by dividing net earnings by the weighted-average number of common shares outstanding for the reporting period. Diluted net earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Outstanding stock options, restricted stock and equity-settled performance stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding. These stock-based compensation instruments do not impact the numerator of the diluted net earnings per share computation. The following table presents the computation of basic and diluted net earnings per common share: (in millions, except per share data) Fiscal Year 2016 2015 2014 Earnings from continuing operations $ 359.7 $ 196.4 $ 183.2 Earnings from discontinued operations 15.3 513.1 103.0 Net earnings $ 375.0 $ 709.5 $ 286.2 Average common shares outstanding – Basic 127.4 127.7 131.0 Effect of dilutive stock-based compensation 1.9 2.0 2.2 Average common shares outstanding – Diluted 129.3 129.7 133.2 Basic net earnings per share: Earnings from continuing operations $ 2.82 $ 1.54 $ 1.40 Earnings from discontinued operations 0.12 4.02 0.78 Net earnings $ 2.94 $ 5.56 $ 2.18 Diluted net earnings per share: Earnings from continuing operations $ 2.78 $ 1.51 $ 1.38 Earnings from discontinued operations 0.12 3.96 0.77 Net earnings $ 2.90 $ 5.47 $ 2.15 Restricted stock and options to purchase shares of our common stock excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows: (in millions) Fiscal Year Ended May 29, 2016 May 31, 2015 May 25, 2014 Anti-dilutive restricted stock and options 0.3 0.1 4.2 Foreign Currency The Canadian dollar is the functional currency for our Canadian restaurant operations and the Malaysian ringgit is the functional currency for our franchises based in Malaysia. Assets and liabiliti |
Real Estate Transactions
Real Estate Transactions | 12 Months Ended |
May 29, 2016 | |
Real Estate Transactions [Abstract] | |
Real Estate Disclosure | REAL ESTATE TRANSACTIONS As a result of a comprehensive evaluation for the monetization of our real estate portfolio, we undertook strategies to pursue sale-leaseback transactions of individual restaurant properties and our corporate headquarters and to transfer 424 of our restaurant properties into a REIT, with substantially all of the REIT’s initial assets being leased back to Darden. Sale-leasebacks During fiscal 2015, we implemented a plan to pursue sale-leaseback transactions of 64 restaurant properties. Fourteen of the transactions closed in the fourth quarter of fiscal 2015, and the remaining 50 transactions closed in fiscal 2016 . The 64 individual sale-leasebacks generated net proceeds of $238.0 million , resulting in deferred gains totaling $49.0 million which will be amortized over the expected leaseback periods on a straight-line basis. Additionally, during fiscal 2016 , we completed the sale-leaseback of our corporate headquarters, generating net proceeds of $131.0 million , resulting in a deferred gain of $6.3 million , which will be amortized over the expected leaseback period on a straight-line basis. REIT Transaction - Separation of Four Corners On June 23, 2015, we announced our plan to separate our business into two separate and independent publicly traded companies. We accomplished this separation on November 9, 2015, with the pro rata distribution of one share of Four Corners Property Trust, Inc. (Four Corners) common stock for every three shares of Darden common stock to holders of Darden common stock. The separation, which was completed pursuant to a separation and distribution agreement between Darden and Four Corners, included (i) the transfer of 6 LongHorn Steakhouse restaurants located in the San Antonio, Texas area (the LongHorn San Antonio Business) as well as 418 restaurant properties (the Four Corners Properties) to Four Corners, which were subsequently leased back to Darden; (ii) the issuance to us of all of the outstanding common stock of Four Corners and corresponding pro rata distribution to our shareholders of the outstanding shares of Four Corners common stock as a tax-free stock dividend; and (iii) a cash dividend of $315.0 million received by us from Four Corners from the proceeds of Four Corners’ term loan borrowings. We requested and received a private letter ruling from the Internal Revenue Service on certain issues relevant to the qualification of the spin-off as a tax-free transaction. Our shareholders’ equity decreased by $435.4 million as a result of the separation of Four Corners. The components of the decrease, principally comprised of the net book value of the net assets that we contributed to Four Corners in connection with the separation, included $834.8 million in net book value of fixed assets, $84.4 million consisting primarily of deferred tax liabilities, offset by the $315.0 million cash dividend received by us from Four Corners. Agreements with Four Corners We entered into lease agreements with Four Corners, pursuant to which we leased the Four Corners Properties on a triple-net basis with terms comparable to similar leases negotiated on an arm’s-length basis. Under the lease agreements, our subsidiaries are the tenant, while Four Corners is the landlord. The leases are triple-net leases that provide for an average initial term of approximately 15 years with stated annual rental payments and options to extend the leases for another 15 years . Under the lease agreements, the rent is subject to annual escalations of 1.5 percent , as well as, in most of the leases, a fair market value adjustment at the start of one of the renewal options. We entered into franchise agreements with Four Corners pursuant to which we provide certain franchising services to Four Corners’ subsidiary which operates the LongHorn San Antonio Business. The franchising services consist of licensing the right to use and display certain trademarks in connection with the operation of the LongHorn San Antonio Business, marketing services, training and access to certain LongHorn operating procedures. The fees and conditions of these franchising services are on terms comparable to similar franchising services negotiated on an arm’s-length basis. Debt Retirement During fiscal 2016 , utilizing the proceeds of the Four Corners cash dividend, cash proceeds from the sale-leasebacks of restaurant properties and our corporate headquarters and additional cash on hand, we retired approximately $1.03 billion aggregate principal of long-term debt (see Note 7 for additional details). |
Dispositions
Dispositions | 12 Months Ended |
May 29, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | DISPOSITIONS On July 28, 2014, we closed on the sale of 705 Red Lobster restaurants. All direct cash flows related to operating these businesses were eliminated at the date of sale. Our continuing involvement has primarily been limited to a transition services agreement, pursuant to which we provide limited, specific services for up to two years from the date of sale with minimal impact to our cash flows. In total, we have recognized a pre-tax gain on the sale of Red Lobster of $854.8 million , which is included in earnings from discontinued operations in our consolidated statements of earnings. For fiscal 2016 , 2015 and 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 (loss) from discontinued operations, net of tax expense (benefit)” 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 are included in assets held for sale on our accompanying consolidated balance sheets. Earnings from discontinued operations, net of taxes in our accompanying consolidated statements of earnings are comprised of the following: (in millions) Fiscal Year Ended May 29, 2016 May 31, 2015 May 25, 2014 Sales $ — $ 400.4 $ 2,472.1 Costs and expenses: Restaurant and marketing expenses 1.8 353.0 2,134.1 Depreciation and amortization — 0.2 124.6 Other income and expenses (1) (20.5 ) (810.7 ) 78.1 Earnings before income taxes 18.7 857.9 135.3 Income tax expense 3.4 344.8 32.3 Earnings from discontinued operations, net of tax $ 15.3 $ 513.1 $ 103.0 (1) Amounts for fiscal years 2016 and 2015 primarily relate to the gain recognized on the sale of Red Lobster. Assets classified as held for sale on our accompanying consolidated balance sheets as of May 29, 2016 , consisted of land, buildings and equipment with carrying amounts of $20.3 million primarily related to excess land parcels adjacent to our corporate headquarters. Assets classified as held for sale on our accompanying consolidated balance sheets as of May 31, 2015 consisted of land, buildings and equipment with carrying amounts of $32.9 million related to Red Lobster properties subject to landlord consents and excess land parcels adjacent to our corporate headquarters. |
Impairments and Disposal of Ass
Impairments and Disposal of Assets, Net | 12 Months Ended |
May 29, 2016 | |
Asset Impairment Charges [Abstract] | |
Impairments and Disposal of Assets, Net | IMPAIRMENTS AND DISPOSAL OF ASSETS, NET Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings are comprised of the following: Fiscal Year (in millions) 2016 2015 2014 Restaurant impairments $ 9.2 $ 49.4 $ 11.5 Disposal gains (5.9 ) (4.2 ) (1.9 ) Other 2.5 16.9 6.8 Impairments and disposal of assets, net $ 5.8 $ 62.1 $ 16.4 Restaurant impairments for fiscal 2016 and 2015 were primarily related to underperforming restaurants and restaurant assets involved in individual sale-leaseback transactions. Restaurant impairments for fiscal 2014 were primarily related to underperforming restaurants. Disposal gains for fiscal 2016 and 2015 were primarily related to the sale of land parcels and sale-leaseback transactions. Disposal gains for fiscal 2014 were primarily related to the sale of land parcels. Other impairment charges for fiscal 2016 primarily related to a cost-method investment and the expected disposal of excess land parcels adjacent to our corporate headquarters which are held for sale. During fiscal 2015 , other impairment charges related to the expected disposal of excess land parcels adjacent to our corporate headquarters, our lobster aquaculture project and a corporate airplane in connection with the closure of our aviation department. Other impairment charges for fiscal 2014 primarily related to a corporate airplane in connection with its expected sale. 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 discounted future cash flows. These amounts are included in impairments and disposal of assets, net as a component of earnings from continuing operations in the accompanying consolidated statements of earnings. |
Land, Buildings And Equipment,
Land, Buildings And Equipment, Net | 12 Months Ended |
May 29, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Land, Buildings And Equipment, Net | LAND, BUILDINGS AND EQUIPMENT, NET The components of land, buildings and equipment, net, are as follows: (in millions) May 29, 2016 May 31, 2015 Land $ 133.1 $ 633.5 Buildings 2,297.1 3,338.9 Equipment 1,318.5 1,439.1 Assets under capital leases 71.9 72.0 Construction in progress 40.0 36.9 Total land, buildings and equipment $ 3,860.6 $ 5,520.4 Less accumulated depreciation and amortization (1,788.3 ) (2,277.7 ) Less amortization associated with assets under capital leases (30.7 ) (26.9 ) Land, buildings and equipment, net $ 2,041.6 $ 3,215.8 |
Segment Information
Segment Information | 12 Months Ended |
May 29, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, The Capital Grille, Yard House, Bahama Breeze, Seasons 52 and Eddie V's in North America as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business. The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. and Canada. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned The Capital Grille and Eddie V's restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Yard House, Seasons 52 and Bahama Breeze restaurants in the U.S. This segment also includes results from our franchises and consumer-packaged goods sales. External sales are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments. Our management uses segment profit as the measure for assessing performance of our segments. Segment profit includes revenues and expenses directly attributable to restaurant-level results of operations (sometimes referred to as restaurant-level earnings). These expenses include food and beverage costs, restaurant labor costs, restaurant expenses and marketing expenses (collectively "restaurant and marketing expenses"). The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 29, 2016 and for the year ended Sales $ 3,838.6 $ 1,587.7 $ 514.1 $ 993.1 $ — $ 6,933.5 Restaurant and marketing expenses 3,079.4 1,312.4 413.6 825.0 — 5,630.4 Segment profit $ 759.2 $ 275.3 $ 100.5 $ 168.1 $ — $ 1,303.1 Depreciation and amortization $ 124.1 $ 67.9 $ 27.1 $ 50.5 $ 20.6 $ 290.2 Impairments and disposal of assets, net (1.4 ) (1.5 ) 0.7 6.0 2.0 5.8 Segment assets 939.2 969.2 857.0 987.6 829.6 4,582.6 Purchases of land, buildings and equipment 95.6 46.9 21.4 60.5 3.9 228.3 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 31, 2015 and for the year ended Sales $ 3,789.6 $ 1,544.7 $ 500.1 $ 929.6 $ — $ 6,764.0 Restaurant and marketing expenses 3,089.1 1,304.8 405.2 785.7 — 5,584.8 Segment profit $ 700.5 $ 239.9 $ 94.9 $ 143.9 $ — $ 1,179.2 Depreciation and amortization $ 149.8 $ 71.6 $ 26.4 $ 47.3 $ 24.2 $ 319.3 Impairments and disposal of assets, net 28.2 0.4 — 21.0 12.5 62.1 Segment assets 1,625.1 1,261.1 865.6 1,054.6 1,188.3 5,994.7 Purchases of land, buildings and equipment 118.9 67.4 22.9 83.4 3.9 296.5 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated For the year ended May 25, 2014 Sales $ 3,643.1 $ 1,383.9 $ 441.6 $ 817.0 $ — $ 6,285.6 Restaurant and marketing expenses 2,995.1 1,179.6 360.2 707.9 — 5,242.8 Segment profit $ 648.0 $ 204.3 $ 81.4 $ 109.1 $ — $ 1,042.8 Depreciation and amortization $ 149.6 $ 66.7 $ 24.3 $ 42.7 $ 21.1 $ 304.4 Impairments and disposal of assets, net 3.3 0.8 4.8 3.7 3.8 16.4 Purchases of land, buildings and equipment 131.9 114.4 42.3 123.1 3.1 414.8 Reconciliation of segment profit to earnings from continuing operations before income taxes: Fiscal Year Ended (in millions) May 29, 2016 May 31, 2015 May 25, 2014 Segment profit $ 1,303.1 $ 1,179.2 $ 1,042.8 Less general and administrative expenses (384.9 ) (430.2 ) (413.1 ) Less depreciation and amortization (290.2 ) (319.3 ) (304.4 ) Less impairments and disposal of assets, net (5.8 ) (62.1 ) (16.4 ) Less interest, net (172.5 ) (192.3 ) (134.3 ) Earnings before income taxes $ 449.7 $ 175.3 $ 174.6 |
Debt
Debt | 12 Months Ended |
May 29, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The components of long-term debt are as follows: (in millions) May 29, 2016 May 31, 2015 Variable-rate term loan (1.68% at May 31, 2015) due August 2017 $ — $ 285.0 6.200% senior notes due October 2017 — 500.0 4.500% senior notes due October 2021 — 121.9 3.350% senior notes due November 2022 — 111.1 4.520% senior notes due August 2024 — 10.0 6.000% senior notes due August 2035 150.0 150.0 6.800% senior notes due October 2037 300.0 300.0 Total long-term debt $ 450.0 $ 1,478.0 Fair value hedge — 3.6 Less unamortized discount and issuance costs (10.0 ) (14.3 ) Total long-term debt less unamortized discount and issuance costs $ 440.0 $ 1,467.3 Less current portion — (15.0 ) Long-term debt, excluding current portion $ 440.0 $ 1,452.3 During fiscal 2016 , utilizing the proceeds of the Four Corners cash dividend, cash proceeds from the sale-leasebacks of restaurant properties and our corporate headquarters and additional cash on hand, we retired approximately $1.03 billion aggregate principal of long-term debt consisting of: • $285.0 million of our variable-rate term loan, maturing in August 2017; • $500.0 million of unsecured 6.200 percent senior notes due in October 2017; • $121.9 million of unsecured 4.500 percent senior notes due in October 2021; • $111.1 million of unsecured 3.350 percent senior notes due in November 2022; and • $10.0 million of unsecured 4.520 percent senior notes due in August 2024. During fiscal 2016 , we recorded approximately $106.8 million associated with the fiscal 2016 retirements including cash costs of approximately $68.7 million for repurchase premiums, make-whole amounts and hedge settlements and non-cash charges of approximately $38.1 million associated with hedge and loan cost write-offs. These amounts were recorded in interest, net, in our consolidated statements of earnings. The interest rate on our $300.0 million 6.800 percent senior notes due October 2037 is subject to adjustment from time to time if the debt rating assigned to such series of notes is downgraded below a certain rating level (or subsequently upgraded). The maximum adjustment is 2.000 percent above the initial interest rate and the interest rate cannot be reduced below the initial interest rate. In October 2014, Moody's Investors Service (Moody's) downgraded our senior unsecured ratings to "Ba1" from "Baa3" resulting in an increase of 0.250 percent in the interest rates on our senior notes due in October 2037 . In April 2016, Moody's subsequently upgraded our rating to "Baa3" and the interest rate was restored to the initial rate. The aggregate contractual maturities of long-term debt for each of the five fiscal years subsequent to May 29, 2016 , and thereafter are as follows: (in millions) Fiscal Year 2017 2018 2019 2020 2021 Thereafter Debt repayments $ — $ — $ — $ — $ — $ 450.0 We maintain a $750.0 million revolving Credit Agreement (Revolving Credit Agreement), with Bank of America, N.A. (BOA) as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. As of May 29, 2016 , we were in compliance with all covenants under the Revolving Credit Agreement. The Revolving Credit Agreement matures on October 24, 2018 , and the proceeds may be used for commercial paper back-up, working capital and capital expenditures, the refinancing of certain indebtedness, certain acquisitions and general corporate purposes. Loans under the Revolving Credit Agreement bear interest at a rate of LIBOR plus a margin determined by reference to a ratings-based pricing grid (Applicable Margin), or the base rate (which is defined as the highest of the BOA prime rate, the Federal Funds rate plus 0.500 percent and the Eurocurrency Rate plus 1.00 percent ) plus the Applicable Margin. Assuming a “BBB” equivalent credit rating level, the Applicable Margin under the Revolving Credit Agreement will be 1.100 percent for LIBOR loans and 0.100 percent for base rate loans. As of May 29, 2016 , we had no outstanding balances under the Revolving Credit Agreement. |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 12 Months Ended |
May 29, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We use financial derivatives to manage interest rate and equity-based compensation risks inherent in our business operations. 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 May 29, 2016 , if counterparties to the derivative instruments failed completely to perform, would approximate the values of derivative instruments currently recognized as assets on 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 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. During fiscal 2016 , in connection with the repayment of our 2017 and 2021 senior notes, we settled our interest-rate swap agreements for a gain of $4.1 million , which was recorded as a component of interest, net in our consolidated statements of earnings and included in the total $106.8 million of costs associated with the pay down of our debt in fiscal 2016 . The swap agreements effectively swapped 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 fiscal 2016 , 2015 and 2014 , $1.7 million , $3.6 million and $2.9 million , respectively, was recorded as a reduction to interest expense related to 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 May 29, 2016 , we were party to equity forward contracts that were indexed to 0.9 million shares of our common stock, at varying forward rates between $40.69 per share and $60.60 per share, extending through September 2020 . 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 or received. We entered into equity forward contracts to hedge the risk of changes in future cash flows associated with recognized, cash-settled performance stock units and employee-directed investments in Darden stock within the non-qualified deferred compensation plan. 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 general and administrative expenses in our consolidated statements of earnings. As of May 29, 2016 , we were party to an equity forward contract that was indexed to 0.1 million shares of our common stock at forward rate of $41.03 per share, can only be net settled in cash and expires in fiscal 2019 . The notional and fair values of our derivative contracts are as follows: (in millions) Notional Values Balance Fair Values Derivative Assets Derivative Liabilities May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 Derivative contracts designated as hedging instruments Equity forwards $ 14.9 $ 11.4 (1 ) $ 1.2 $ 0.4 $ — $ — Interest rate related — 200.0 (1 ) — 3.6 — — $ 1.2 $ 4.0 $ — $ — Derivative contracts not designated as hedging instruments Equity forwards $ 28.2 $ 51.7 (1 ) $ 2.6 $ 1.3 $ — $ — $ 2.6 $ 1.3 $ — $ — Total derivative contracts $ 3.8 $ 5.3 $ — $ — (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) Recognized in Location of from AOCI to Earnings Amount of Gain (Loss) Reclassified from AOCI to Location of Earnings (1) Amount of Gain (Loss) Recognized in Fiscal Year Fiscal Year Fiscal Year 2016 2015 2014 2016 2015 2014 2016 2015 2014 Equity $ 2.0 $ 2.1 $ (3.5 ) (2) $ 2.1 $ (1.0 ) $ (0.8 ) (2) $ 0.9 $ 1.1 $ 1.4 Interest rate — — — Interest, net (37.4 ) (45.7 ) (10.3 ) Interest, net — — — $ 2.0 $ 2.1 $ (3.5 ) $ (35.3 ) $ (46.7 ) $ (11.1 ) $ 0.9 $ 1.1 $ 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 restaurant labor expenses and general and administrative expenses. The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows: (in millions) Location of Gain (Loss) Recognized in Earnings Amount of Gain (Loss) Fiscal Year 2016 2015 2014 Equity forwards Restaurant labor expenses $ 3.9 $ 4.0 $ (0.5 ) Equity forwards General and administrative expenses 7.5 9.2 (1.3 ) $ 11.4 $ 13.2 $ (1.8 ) Based on the fair value of our derivative instruments designated as cash flow hedges as of May 29, 2016 , we expect to reclassify $0.3 million of net gains on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months based on the maturity of equity forward contracts. 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 | 12 Months Ended |
May 29, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The fair values of cash equivalents, receivables, net, 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 at May 29, 2016 and May 31, 2015 : Items Measured at Fair Value at May 29, 2016 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Fixed-income securities: Corporate bonds (1) $ 2.0 $ — $ 2.0 $ — U.S. Treasury securities (2) 3.9 3.9 — — Mortgage-backed securities (1) 1.0 — 1.0 — Derivatives: Equity forwards (3) 3.8 — 3.8 — Total $ 10.7 $ 3.9 $ 6.8 $ — Items Measured at Fair Value at May 31, 2015 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Fixed-income securities: Corporate bonds (1) $ 2.2 $ — $ 2.2 $ — U.S. Treasury securities (2) 5.0 5.0 — — Mortgage-backed securities (1) 1.6 — 1.6 — Derivatives: Equity forwards (3) 1.7 — 1.7 — Interest rate swaps (4) 3.6 — 3.6 — Total $ 14.1 $ 5.0 $ 9.1 $ — (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. Our fixed-income securities are carried at fair value and consist of available-for-sale securities related to insurance funding requirements for our workers' compensation and general liability claims. As of May 29, 2016 , the cost and market value for our securities that qualify as available-for-sale was $6.9 million . Earnings include insignificant realized gains and loss from sales of available-for-sale securities. At May 29, 2016 , our available-for-sale securities of $2.5 million have maturities of less than one year and $4.4 million have maturities within one to three years. The carrying value and fair value of long-term debt, as of May 29, 2016 , was $440.0 million and $499.5 million , respectively. The carrying value and fair value of long-term debt including the amounts included in current liabilities as of May 31, 2015 , was $1.47 billion and $1.57 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. The fair value of non-financial assets measured at fair value on a non-recurring basis, which is classified as Level 3 in the fair value hierarchy, is determined based on appraisals or sales prices of comparable assets and estimates of future cash flows. As of May 29, 2016 , long-lived assets held and used with a carrying value of $5.4 million , primarily related to two underperforming restaurants, were determined to have no fair value resulting in an impairment charge of $5.4 million . As of May 31, 2015 , long-lived assets held and used with a carrying value of $70.5 million , primarily related to restaurant assets involved in sale-leaseback arrangements, were written down to their fair value of $55.4 million , resulting in an impairment charge of $15.1 million . As of May 29, 2016 , long-lived assets held for sale with a carrying value of $17.5 million , related to excess land parcels adjacent to our corporate headquarters, were written down to their fair value of $16.9 million , resulting in an impairment charge of $0.6 million . As of May 31, 2015 , long-lived assets held for sale with a carrying value of $21.1 million , related to excess land parcels adjacent to our corporate headquarters, were written down to their fair value of $17.0 million , resulting in an impairment charge of $4.1 million . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
May 29, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Share Repurchase Program Repurchased common stock has historically been reflected as a reduction of stockholders’ equity. On December 16, 2015, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $500.0 million of our outstanding common stock. As of May 29, 2016 , $315.6 million remains under this authorization. This repurchase program does not have an expiration and replaces all other outstanding share repurchase authorizations. Share Retirements As of May 29, 2016 , of the 185.0 million cumulative shares repurchased under the current and previous authorizations, 172.3 million shares were retired and restored to authorized but unissued shares of common stock. We expect that all shares of common stock acquired in the future will also be retired and restored to authorized but unissued shares of common stock. Stockholders’ Rights Plan In connection with the announced REIT transaction, our Board approved a Rights Agreement dated June 23, 2015 , to deter any person from acquiring ownership of more than 9.8 percent of our common stock during the period leading up to the REIT transaction. Under the Rights Agreement, each share of our common stock had associated with it one right to purchase one thousandth of a share of our Series A Junior Participating Cumulative Preferred Stock at a purchase price of $156.26 per share, subject to adjustment under certain circumstances to prevent dilution. On November 10, 2015 , the rights expired by their terms following completion of the spin-off of Four Corners. As a result, each share of our common stock is no longer accompanied by a right. The holders of common stock are not entitled to any payment as a result of the expiration of the Rights Agreement and the rights issued thereunder. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), net of tax, are as follows: (in millions) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Unrealized Gains (Losses) on Derivatives Benefit Plan Funding Position Accumulated Other Comprehensive Income (Loss) Balances at May 25, 2014 $ (4.7 ) $ 0.1 $ (50.4 ) $ (73.1 ) $ (128.1 ) Gain (loss) (4.3 ) — 2.1 3.1 0.9 Reclassification realized in net earnings 7.3 — 29.2 4.1 40.6 Balances at May 31, 2015 $ (1.7 ) $ 0.1 $ (19.1 ) $ (65.9 ) $ (86.6 ) Gain (loss) 0.5 — 2.0 (23.5 ) (21.0 ) Reclassification realized in net earnings — — 21.0 (0.4 ) 20.6 Balances at May 29, 2016 $ (1.2 ) $ 0.1 $ 3.9 $ (89.8 ) $ (87.0 ) Reclassifications related to foreign currency translation in fiscal 2015 primarily relate to the disposition of Red Lobster and are included in earnings from discontinued operations, net of tax expense in our consolidated statement of earnings. The following table presents the amounts and line items in our consolidated statements of earnings where other adjustments reclassified from AOCI into net earnings were recorded: Fiscal Year (in millions) AOCI Components Location of Gain (Loss) Recognized in Earnings May 29, May 31, Derivatives Equity contracts (1) $ 2.1 $ (1.0 ) Interest rate contracts (2) (37.4 ) (45.7 ) Total before tax $ (35.3 ) $ (46.7 ) Tax benefit 14.3 17.5 Net of tax $ (21.0 ) $ (29.2 ) Benefit plan funding position Pension/postretirement plans Actuarial losses (3) $ (2.8 ) $ (2.6 ) Settlement loss (3) — (6.1 ) Total - pension/postretirement plans $ (2.8 ) $ (8.7 ) Recognized net actuarial gain - other plans (4) 3.4 1.8 Total before tax $ 0.6 $ (6.9 ) Tax benefit (0.2 ) 2.8 Net of tax $ 0.4 $ (4.1 ) (1) Primarily included in restaurant labor costs and general and administrative expenses. See Note 8 for additional details. (2) Included in interest, net, on our consolidated statements of earnings. Reclassifications primarily related to the acceleration of hedge loss amortization resulting from the pay down of the associated long-term debt. (3) Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of restaurant labor expenses and general and administrative expenses. See Note 14 for additional details. (4) Included in the computation of net periodic benefit costs - other plans, which is a component of general and administrative expenses. |
Leases
Leases | 12 Months Ended |
May 29, 2016 | |
Leases [Abstract] | |
Leases | LEASES An analysis of rent expense incurred related to continuing operations is as follows: (in millions) Fiscal Year 2016 2015 2014 Restaurant minimum rent (1) $ 233.6 $ 167.0 $ 146.4 Restaurant rent averaging expense 15.9 16.7 26.9 Restaurant percentage rent 8.0 7.7 6.6 Other 8.1 3.5 5.5 Total rent expense $ 265.6 $ 194.9 $ 185.4 (1) The increase for fiscal 2016 is primarily related to the REIT transaction and individual sale-leaseback transactions. See Note 2 for further information. Total rent expense included in discontinued operations was $0.0 million , $6.2 million and $36.2 million for fiscal 2016, 2015 and 2014, respectively. These amounts include restaurant minimum rent of $0.0 million , $5.8 million and $33.0 million for fiscal 2016, 2015 and 2014, respectively. The annual future lease commitments under capital lease obligations and noncancelable operating and financing leases, including those related to restaurants reported as discontinued operations, for each of the five fiscal years subsequent to May 29, 2016 and thereafter is as follows: (in millions) Fiscal Year Capital Financing Operating 2017 $ 5.9 $ 7.1 $ 297.6 2018 6.0 7.2 287.6 2019 6.0 7.4 271.5 2020 6.1 7.5 255.2 2021 6.0 7.6 232.8 Thereafter 49.0 115.8 1,484.6 Total future lease commitments $ 79.0 $ 152.6 $ 2,829.3 Less imputed interest (at 6.5%), (various) (27.0 ) (76.6 ) Present value of future lease commitments $ 52.0 $ 76.0 Less current maturities (2.7 ) (1.3 ) Obligations under capital and financing leases, net of current maturities $ 49.3 $ 74.7 |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
May 29, 2016 | |
Additional Financial Information [Abstract] | |
Additional Financial Information Disclosure | ADDITIONAL FINANCIAL INFORMATION The tables below provide additional financial information related to our consolidated financial statements: Balance Sheets (in millions) May 29, 2016 May 31, 2015 Receivables, net Retail outlet gift card sales $ 43.9 $ 47.1 Landlord allowances due 3.7 12.9 Miscellaneous 16.9 18.9 Allowance for doubtful accounts (0.5 ) (0.9 ) $ 64.0 $ 78.0 Other Current Liabilities Non-qualified deferred compensation plan $ 194.0 $ 209.6 Sales and other taxes 58.7 63.9 Insurance-related 36.3 37.4 Employee benefits 35.8 34.3 Contingent proceeds - Red Lobster disposition — 31.5 Accrued interest 5.1 11.4 Miscellaneous 70.7 61.0 $ 400.6 $ 449.1 Statements of Earnings Fiscal Year (in millions) 2016 2015 2014 Interest expense (1) $ 165.4 $ 186.2 $ 134.0 Imputed interest on capital and financing leases 8.9 8.0 3.5 Capitalized interest (0.7 ) (1.3 ) (2.6 ) Interest income (1.1 ) (0.6 ) (0.6 ) Interest, net $ 172.5 $ 192.3 $ 134.3 (1) Interest expense in fiscal 2016 and 2015 includes approximately $106.8 million and $91.3 million , respectively, of expenses associated with the retirement of long-term debt. See Note 7. Statements of Cash Flows Fiscal Year (in millions) 2016 2015 2014 Cash paid during the fiscal year for: Interest, net of amounts capitalized (1) $ 140.8 $ 142.8 $ 117.5 Income taxes, net of refunds (2) $ 128.0 $ 290.7 $ 90.0 Non-cash investing and financing activities: Increase in land, buildings and equipment through accrued purchases $ 14.9 $ 11.1 $ 24.4 Net book value of assets distributed in Four Corners separation, net of deferred tax liabilities $ 750.4 $ — $ — (1) Interest paid in fiscal 2016 and 2015 includes approximately $68.7 million and $44.0 million , respectively, of payments associated with the retirement of long-term debt. See Note 7. (2) Income taxes paid in fiscal 2015 were higher primarily as a result of the gain recognized on the sale of Red Lobster. |
Income Taxes
Income Taxes | 12 Months Ended |
May 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Total income tax expense was allocated as follows: (in millions) Fiscal Year 2016 2015 2014 Earnings from continuing operations $ 90.0 $ (21.1 ) $ (8.6 ) Earnings from discontinued operations 3.4 344.8 32.3 Total consolidated income tax expense $ 93.4 $ 323.7 $ 23.7 The components of earnings from continuing operations before income taxes and the provision for income taxes thereon are as follows: (in millions) Fiscal Year 2016 2015 2014 Earnings from continuing operations before income taxes: U.S. $ 450.6 $ 179.9 $ 189.0 Foreign (0.9 ) (4.6 ) (14.4 ) Earnings from continuing operations before income taxes $ 449.7 $ 175.3 $ 174.6 Income taxes: Current: Federal $ 89.1 $ (12.7 ) $ 39.5 State and local 2.7 (8.0 ) 5.4 Foreign 1.9 6.9 3.0 Total current $ 93.7 $ (13.8 ) $ 47.9 Deferred (principally U.S.): Federal $ (2.4 ) $ — $ (43.7 ) State and local (1.3 ) (7.3 ) (12.8 ) Total deferred $ (3.7 ) $ (7.3 ) $ (56.5 ) Total income taxes $ 90.0 $ (21.1 ) $ (8.6 ) The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings: Fiscal Year 2016 2015 2014 U.S. statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax benefits 1.2 (6.6 ) (2.7 ) Benefit of federal income tax credits (12.5 ) (34.0 ) (30.3 ) Other, net (3.7 ) (6.4 ) (6.9 ) Effective income tax rate 20.0 % (12.0 )% (4.9 )% As of May 29, 2016 , we had estimated current prepaid state income taxes of $17.0 million and current prepaid federal income taxes of $29.1 million , which are included on our accompanying consolidated balance sheets as prepaid income taxes. As of May 29, 2016 , we had unrecognized tax benefits of $14.3 million , which represents the aggregate tax effect of the differences between tax return positions and benefits recognized in our consolidated financial statements, all of which would favorably affect the effective tax rate if resolved in our favor. Included in the balance of unrecognized tax benefits at May 29, 2016 , is $1.2 million related to tax positions for which it is reasonably possible that the total amounts could change during the next 12 months based on the outcome of examinations. The $1.2 million relates to items that would impact our effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (in millions) Balances at May 31, 2015 $ 13.7 Additions related to current-year tax positions 3.9 Reductions related to prior-year tax positions (0.4 ) Reductions due to settlements with taxing authorities (1.0 ) Reductions to tax positions due to statute expiration (1.9 ) Balances at May 29, 2016 $ 14.3 We recognize accrued interest related to unrecognized tax benefits in income tax expense. Penalties, when incurred, are recognized in general and administrative expense. Interest expense associated with unrecognized tax benefits, excluding the release of accrued interest related to prior year matters due to settlement or the lapse of the statute of limitations was as follows: (in millions) Fiscal Year 2016 2015 2014 Interest expense on unrecognized tax benefits $ 0.5 $ 1.1 $ 0.4 At May 29, 2016 , we had $0.7 million accrued for the payment of interest associated with unrecognized tax benefits. For U.S. federal income tax purposes, we participate in the Internal Revenue Service's (IRS) Compliance Assurance Process (CAP), whereby our U.S. federal income tax returns are reviewed by the IRS both prior to and after their filing. Income tax returns are subject to audit by state and local governments, generally years after the returns are filed. These returns could be subject to material adjustments or differing interpretations of the tax laws. The major jurisdictions in which the Company files income tax returns include the U.S. federal jurisdiction, Canada, and all states in the U.S. that have an income tax. With a few exceptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before fiscal 2015, and state and local, or non-U.S. income tax examinations by tax authorities for years before fiscal 2011. The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: (in millions) May 29, 2016 May 31, 2015 Accrued liabilities $ 109.4 $ 104.9 Compensation and employee benefits 176.0 186.6 Deferred rent and interest income 97.8 88.9 Net operating loss, credit and charitable contribution carryforwards 47.1 50.1 Other 5.9 6.5 Gross deferred tax assets $ 436.2 $ 437.0 Valuation allowance (17.0 ) (13.5 ) Deferred tax assets, net of valuation allowance $ 419.2 $ 423.5 Trademarks and other acquisition related intangibles (226.4 ) (220.6 ) Buildings and equipment (238.6 ) (337.1 ) Capitalized software and other assets (34.0 ) (28.1 ) Other (12.1 ) (22.1 ) Gross deferred tax liabilities $ (511.1 ) $ (607.9 ) Net deferred tax liabilities $ (91.9 ) $ (184.4 ) Net operating loss, credit and charitable contribution carryforwards have the potential to expire. We have taken current and potential future expirations into consideration when evaluating the need for valuation allowances against these deferred tax assets. A valuation allowance for deferred tax assets is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization is dependent upon the generation of future taxable income or the reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which our deferred tax assets are deductible, we believe it is more-likely-than-not that we will realize the benefits of these deductible differences, net of the existing valuation allowances at May 29, 2016 . |
Retirement Plans
Retirement Plans | 12 Months Ended |
May 29, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | RETIREMENT PLANS Defined Benefit Plans and Postretirement Benefit Plan We sponsor non-contributory defined benefit pension plans, for a group of salaried employees in the United States, in which benefits are based on various formulas that include years of service and compensation factors; and for a group of hourly employees in the United States, in which a fixed level of benefits is provided. As of December 2014, the plans were frozen and no additional service was eligible to be accrued under such plans. Pension plan assets are primarily invested in U.S. and International equities as well as long-duration bonds and real estate investments. Our policy is to fund, at a minimum, the amount necessary on an actuarial basis to provide for benefits in accordance with the requirements of the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code (IRC), as amended by the Pension Protection Act of 2006. We also sponsor a non-contributory postretirement benefit plan that provides health care benefits to our salaried retirees. Fundings related to the defined benefit pension plans and postretirement benefit plans, which are funded on a pay-as-you-go basis, were as follows: (in millions) Fiscal Year 2016 2015 2014 Defined benefit pension plans funding $ 25.4 $ 0.4 $ 0.4 Postretirement benefit plan funding 1.1 1.1 0.9 During the fourth quarter of fiscal 2016, we made a voluntary funding contribution of $25.0 million to our defined benefit pension plans. We expect to contribute approximately $0.4 million to our defined benefit pension plans and approximately $1.3 million to our postretirement benefit plan during fiscal 2017 . We are required to recognize the over- or under-funded status of the plans as an asset or liability as measured by the difference between the fair value of the plan assets and the benefit obligation and any unrecognized prior service costs and actuarial gains and losses as a component of accumulated other comprehensive income (loss), net of tax. The following provides a reconciliation of the changes in the plan benefit obligation, fair value of plan assets and the funded status of the plans as of May 29, 2016 and May 31, 2015 : (in millions) Defined Benefit Plans Postretirement Benefit Plan 2016 2015 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of period $ 288.4 $ 283.9 $ 18.0 $ 38.5 Service cost — 1.1 0.2 0.5 Interest cost 10.6 10.0 0.8 1.0 Plan amendments — — — (26.9 ) Plan settlements — (15.8 ) — — Participant contributions — — — 0.4 Benefits paid (15.9 ) (8.6 ) (1.1 ) (1.5 ) Actuarial loss 15.4 17.8 2.0 6.0 Benefit obligation at end of period $ 298.5 $ 288.4 $ 19.9 $ 18.0 Change in Plan Assets: Fair value at beginning of period $ 236.6 $ 243.9 $ — $ — Actual return on plan assets (4.1 ) 16.7 — — Employer contributions 25.4 0.4 1.1 1.1 Plan settlements — (15.8 ) — — Participant contributions — — — 0.4 Benefits paid (15.9 ) (8.6 ) (1.1 ) (1.5 ) Fair value at end of period $ 242.0 $ 236.6 $ — $ — Unfunded status at end of period $ (56.5 ) $ (51.8 ) $ (19.9 ) $ (18.0 ) The following is a detail of the balance sheet components of each of our plans and a reconciliation of the amounts included in accumulated other comprehensive income (loss): (in millions) Defined Benefit Plans Postretirement Benefit Plan May 29, May 31, May 29, May 31, Components of the Consolidated Balance Sheets: Current liabilities $ — $ — $ 1.3 $ 1.1 Noncurrent liabilities 56.5 51.8 18.6 16.9 Net amounts recognized $ 56.5 $ 51.8 $ 19.9 $ 18.0 Amounts Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Prior service (cost) credit $ — $ — $ 11.9 $ 14.9 Net actuarial gain (loss) (87.9 ) (68.7 ) (9.5 ) (9.0 ) Net amounts recognized $ (87.9 ) $ (68.7 ) $ 2.4 $ 5.9 The following is a summary of our accumulated and projected benefit obligations for our defined benefit plans: (in millions) May 29, 2016 May 31, 2015 Accumulated benefit obligation for all defined benefit plans $ 298.5 $ 288.4 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 298.5 288.4 Fair value of plan assets 242.0 236.6 Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets 298.5 288.4 The following table presents the weighted-average assumptions used to determine benefit obligations and net expense: Defined Benefit Plans Postretirement Benefit Plan 2016 2015 2016 2015 Weighted-average assumptions used to determine benefit obligations at May 29 and May 31 (1) Discount rate 4.18 % 4.43 % 4.00 % 4.22 % Rate of future compensation increases N/A N/A N/A N/A Weighted-average assumptions used to determine net expense for fiscal years ended May 29 and May 31 (2) Discount rate 4.43 % 4.41 % 4.22 % 4.26 % Expected long-term rate of return on plan assets 6.50 % 7.00 % N/A N/A Rate of future compensation increases N/A 3.86 % N/A N/A (1) Determined as of the end of fiscal year. (2) Determined as of the beginning of fiscal year. We set the discount rate assumption annually for each of the plans at their valuation dates to reflect the yield of high-quality fixed-income debt instruments, with lives that approximate the maturity of the plan benefits. Additionally, for our mortality assumption as of fiscal year end, we selected the most recent RP-2014 mortality tables and MP-2015 mortality improvement scale to measure the benefit obligations. The expected long-term rate of return on plan assets is based upon several factors, including our historical assumptions compared with actual results, an analysis of current market conditions, asset fund allocations and the views of leading financial advisers and economists. We reduced our expected long-term rate of return on plan assets for our defined benefit plans from 8.0 percent used in fiscal 2014 to 7.0 percent used in fiscal 2015 and then to 6.5 percent for fiscal 2016 in connection with our current expectations for long-term returns and target asset fund allocation. In developing our expected rate of return assumption, we have evaluated the actual historical performance and long-term return projections of the plan assets, which give consideration to the asset mix and the anticipated timing of the pension plan outflows. We employ a total return investment approach whereby a mix of equity and fixed-income investments are used to maximize the long-term return of plan assets for what we consider a prudent level of risk. Our historical 10-year, 15-year and 20-year rates of return on plan assets, calculated using the geometric method average of returns, are approximately 6.8 percent , 7.6 percent and 8.7 percent , respectively, as of May 29, 2016 . Our Benefit Plans Committee sets the investment policy for the Defined Benefit Plans and oversees the investment allocation, which includes setting long-term strategic targets. Our overall investment strategy is to achieve appropriate diversification through a mix of equity investments, which may include U.S., international, and private equities, as well as long-duration bonds and real estate investments. Currently, our target asset fund allocation is 40.0 percent high-quality, long-duration fixed-income securities, 31.0 percent U.S. equities, 16.0 percent international equities, 10.0 percent absolute-return funds and 3.0 percent real estate securities. The investment policy establishes a re-balancing band around the established targets within which the asset class weight is allowed to vary. Equity securities, absolute-return funds, international equities and fixed-income securities include investments in various industry sectors. Investments in real estate securities follow different strategies designed to maximize returns, allow for diversification and provide a hedge against inflation. Our current positioning is neutral on investment style between value and growth companies and large and small cap companies. We monitor our actual asset fund allocation to ensure that it approximates our target allocation and believe that our long-term asset fund allocation will continue to approximate our target allocation. Investments held in the U.S. commingled fund, U.S. corporate securities, U.S. Treasury securities, an international commingled fund, a global fixed-income commingled fund and public sector utility securities represented approximately 31.1 percent , 15.6 percent , 10.7 percent , 10.3 percent , 10.1 percent and 6.1 percent respectively, of total plan assets and represents the only significant concentrations of risk related to a single entity, sector, country, commodity or investment fund. No other single sector concentration of assets exceeded 5.0 percent of total plan assets. Components of net periodic benefit cost included in earnings are as follows: (in millions) Defined Benefit Plans Postretirement Benefit Plan 2016 2015 2014 2016 2015 2014 Service cost $ — $ 1.1 $ 4.4 $ 0.2 $ 0.5 $ 0.7 Interest cost 10.6 10.0 10.2 0.8 1.0 1.4 Expected return on plan assets (14.5 ) (15.2 ) (17.1 ) — — — Amortization of unrecognized prior service cost — — 0.1 (4.8 ) (2.8 ) (0.1 ) Recognized net actuarial loss 2.8 2.6 9.0 1.2 0.8 — Settlement loss recognized — 6.1 — — — — Curtailment gain recognized — — (0.5 ) — — — Net pension and postretirement cost (benefit) $ (1.1 ) $ 4.6 $ 6.1 $ (2.6 ) $ (0.5 ) $ 2.0 The amortization of the net actuarial gain (loss) component of our fiscal 2017 net periodic benefit cost for the defined benefit plans and postretirement benefit plan is expected to be approximately $(3.2) million and $(1.7) million , respectively. The fair values of the defined benefit pension plans assets at their measurement dates of May 29, 2016 and May 31, 2015 , are as follows: Items Measured at Fair Value at May 29, 2016 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity: U.S. Commingled Funds (1) $ 75.3 $ — $ 75.3 $ — International Commingled Fund (2) 24.9 — 24.9 — Emerging Market Commingled Funds (3) 6.8 — 6.8 — Emerging Market Mutual Fund (4) 5.9 5.9 — — Real Estate Commingled Fund (5) 7.5 — 7.5 — Fixed-Income: U.S. Treasury Securities (6) 25.9 25.9 — — U.S. Corporate Securities (6) 37.8 — 37.8 — International Securities (6) 6.3 — 6.3 — Public Sector Utility Securities (6) 14.8 — 14.8 — Global Fixed-Income Commingled Fund (7) 24.4 — 24.4 — U.S. Fixed-Income Commingled Funds (8) 10.3 — 10.3 — Cash & Accruals 2.1 2.1 — — Total $ 242.0 $ 33.9 $ 208.1 $ — Items Measured at Fair Value at May 31, 2015 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity: U.S. Commingled Funds (1) $ 75.8 $ — $ 75.8 $ — International Commingled Fund (2) 25.7 — 25.7 — Emerging Market Commingled Funds (3) 13.1 — 13.1 — Real Estate Commingled Fund (5) 6.9 — 6.9 — Fixed-Income: U.S. Treasury Securities (6) 25.1 25.1 — — U.S. Corporate Securities (6) 41.4 — 41.4 — International Securities (6) 8.3 — 8.3 — Public Sector Utility Securities (6) 14.5 — 14.5 — Global Fixed-Income Commingled Fund (7) 24.0 — 24.0 — Cash & Accruals 1.8 1.8 — — Total $ 236.6 $ 26.9 $ 209.7 $ — (1) U.S. commingled funds are comprised of investments in funds that purchase publicly traded U.S. common stock for total return purposes. Investments are valued using a unit price or net asset value (NAV) based on the fair value of the underlying investments of the funds. There are no redemption restrictions associated with these funds. (2) International commingled fund is comprised of investments in funds that purchase publicly traded non-U.S. common stock for total return purposes. Investments are valued using a unit price or NAV based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. (3) Emerging market commingled funds and developed market securities are comprised of investments in funds that purchase publicly traded common stock of non-U.S. companies in emerging economies for total return purposes. Funds are valued using a unit price or NAV based on the fair value of the underlying investments of the funds. There are no redemption restrictions associated with these funds. (4) Emerging market mutual fund is comprised of securities associated with emerging markets and frontier markets. Fund is valued using quoted market prices from national exchanges. (5) Real estate commingled fund is comprised of investments in funds that purchase publicly traded common stock of real estate companies for purposes of total return. These investments are valued using a unit price or NAV based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. (6) Fixed-income securities are comprised of investments in government and corporate debt securities. These securities are valued by the trustee at closing prices from national exchanges or pricing vendors on the valuation date. (7) Global fixed-income commingled fund is comprised of investments in U.S. and non-U.S. government fixed-income securities. Investments are valued using a unit price or NAV based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. (8) U.S. fixed-income commingled funds are comprised of a diversified portfolio of U.S. investment-grade corporate and government securities. Investments are valued using a unit price or NAV based on the fair value of the underlying investments of the funds. There are no redemption restrictions associated with these funds. The following benefit payments are expected to be paid between fiscal 2017 and fiscal 2026 : (in millions) Defined Benefit Plans Postretirement Benefit Plan 2017 $ 12.5 $ 1.3 2018 12.6 1.3 2019 13.0 1.3 2020 13.7 1.3 2021 14.2 1.3 2022-2026 79.3 6.2 Postemployment Severance Plan We accrue for postemployment severance costs in our consolidated financial statements and recognize actuarial gains and losses as well as prior service credits related to our postemployment severance accrual as a component of accumulated other comprehensive income (loss). As of May 29, 2016 and May 31, 2015 , $4.3 million and $2.3 million , respectively, of unrecognized actuarial losses related to our postemployment severance plan were included in accumulated other comprehensive income (loss) on a net of tax basis. Defined Contribution Plan We have a defined contribution (401(k)) plan covering most employees age 21 and older. We match contributions for participants with at least one year of service up to 6 percent of compensation, based on our performance. The match ranges from a minimum of $0.25 to $1.20 for each dollar contributed by the participant. The plan had net assets of $643.3 million at May 29, 2016 , and $610.9 million at May 31, 2015 . Expense recognized in fiscal 2016 , 2015 and 2014 was $15.1 million , $0.6 million and $0.7 million , respectively. Employees classified as “highly compensated” under the IRC are not eligible to participate in this plan. Instead, highly compensated employees are eligible to participate in a separate non-qualified deferred compensation (FlexComp) plan. This plan allows eligible employees to defer the payment of part of their annual salary and all or part of their annual bonus and provides for awards that approximate the matching contributions and other amounts that participants would have received had they been eligible to participate in our defined contribution and defined benefit plans. Amounts payable to highly compensated employees under the FlexComp plan totaled $194.0 million and $209.6 million at May 29, 2016 and May 31, 2015 , respectively. These amounts are included in other current liabilities. The defined contribution plan includes an Employee Stock Ownership Plan (ESOP). The ESOP borrowed $16.9 million from us at a variable rate of interest in July 1996. At May 29, 2016 , the ESOP’s original debt to us had a balance of $2.3 million with a variable rate of interest of 0.43 percent and is due to be repaid no later than December 2019 . At the end of fiscal 2005, the ESOP borrowed an additional $1.6 million (Additional Loan) from us at a variable interest rate and acquired an additional 0.05 million shares of our common stock, which were held in suspense within the ESOP at that time. At May 29, 2016 , the Additional Loan had a balance of $1.2 million with a variable interest rate of 0.63 percent and is due to be repaid no later than December 2018. Compensation expense is recognized as contributions are accrued. Fluctuations in our stock price impact the amount of expense to be recognized. Contributions to the plan, plus the dividends accumulated on unallocated shares held by the ESOP, are used to pay principal, interest and expenses of the plan. As loan payments are made, common stock is allocated to ESOP participants. In each of the fiscal years 2016 , 2015 and 2014 , the ESOP used dividends received of $0.7 million , $1.1 million and $0.9 million , respectively, and contributions received from us of $0.1 million , $0.0 million and $0.0 million , respectively, to pay principal and interest on our debt. ESOP shares are included in weighted-average common shares outstanding for purposes of calculating net earnings per share with the exception of those shares acquired under the Additional Loan, which are accounted for in accordance with FASB ASC Subtopic 718-40, Employee Stock Ownership Plans. Fluctuations in our stock price are recognized as adjustments to common stock and surplus when the shares are committed to be released. The ESOP shares acquired under the Additional Loan are not considered outstanding until they are committed to be released and, therefore, unreleased shares have been excluded for purposes of calculating basic and diluted net earnings per share. As of May 29, 2016 , the ESOP shares included in the basic and diluted net earnings per share calculation totaled 2.7 million shares, representing 2.2 million allocated shares and 0.5 million suspense shares. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 29, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION In September 2015, our shareholders approved the Darden Restaurants, Inc. 2015 Omnibus Incentive Plan (2015 Plan). All equity grants subject to ASC Topic 718 after the date of approval are made under the 2015 Plan. No further equity grants after that date are permitted under the Darden Restaurants, Inc. 2002 Stock Incentive Plan, the RARE Hospitality International, Inc. Amended and Restated 2002 Long-Term Incentive Plan or any other prior stock option and/or stock grant plans (collectively, the Prior Plans). The 2015 Plan and the Prior Plans are administered by the Compensation Committee of the Board of Directors. The 2015 Plan provides for the issuance of up to 7.6 million common shares in connection with the granting of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units (RSUs), stock awards and other stock-based awards including performance stock units and Darden stock units to employees, consultants and non-employee directors. There are outstanding awards under the Prior Plans that may still vest and be exercised in accordance with their terms. As of May 29, 2016, approximately 6.6 million shares may be issued under outstanding awards that were granted under the Prior Plans. Pursuant to the provisions of our stock plans, in connection with the separation of Four Corners (see Note 2) we made certain adjustments to the exercise price and number of our share-based compensation awards, with the intention of preserving the intrinsic value of the awards immediately prior to the separation. These adjustments are reflected in the activity tables that follow. The separation-related adjustments did not have a material impact on either compensation expense or the potentially dilutive securities to be considered in the calculation of diluted earnings per share of common stock. Stock-based compensation expense included in continuing operations was as follows: (in millions) Fiscal Year 2016 2015 2014 Stock options (1) $ 7.8 $ 20.9 $ 19.3 Restricted stock/restricted stock units 1.6 2.0 0.9 Darden stock units 15.9 13.3 12.3 Cash-settled performance stock units (2) 6.5 14.5 2.5 Equity-settled performance stock units 2.7 — — Employee stock purchase plan 1.1 1.3 1.8 Director compensation program/other 1.7 1.7 1.9 $ 37.3 $ 53.7 $ 38.7 (1) The higher expense in fiscal 2015 and fiscal 2014 is primarily attributable to the workforce reduction efforts (see Note 16) and a change in mix of equity awards granted. (2) The higher expense in fiscal 2015 is primarily attributable to the workforce reduction efforts (see Note 16) and the impact of improved financial performance. The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes model to record stock-based compensation are as follows: Stock Options Granted in Fiscal Year 2016 2015 2014 Weighted-average fair value (1) $ 12.72 $ 9.41 $ 10.71 Dividend yield 3.3 % 4.5 % 4.4 % Expected volatility of stock 28.0 % 37.3 % 39.6 % Risk-free interest rate 1.9 % 2.1 % 1.9 % Expected option life (in years) 6.5 6.5 6.4 Weighted-average exercise price per share (1) $ 64.85 $ 40.43 $ 42.93 (1) Weighted-averages were adjusted for the impact of the separation of Four Corners. The following table presents a summary of our stock option activity as of and for the year ended May 29, 2016 : Options (in millions) Weighted-Average Exercise Price Per Share Weighted-Average Aggregate Intrinsic Value Outstanding beginning of period 7.71 $44.18 6.08 $164.6 Awards issued in conversion as a result of the separation of Four Corners 0.97 Options granted 0.44 64.85 Options exercised (2.61) 36.21 Options canceled (0.19) 46.77 Outstanding end of period 6.32 $42.04 6.00 $160.6 Exercisable 4.66 $40.23 5.29 $127.0 The total intrinsic value of options exercised during fiscal 2016 , 2015 and 2014 was $73.6 million , $90.2 million and $39.9 million , respectively. Cash received from option exercises during fiscal 2016 , 2015 and 2014 was $94.4 million , $154.6 million and $50.9 million , respectively. Stock options generally vest over 4 years and have a maximum contractual period of 10 years from the date of grant. We settle employee stock option exercises with authorized but unissued shares of Darden common stock or treasury shares we have acquired through our ongoing share repurchase program. As of May 29, 2016 , there was $8.9 million of unrecognized compensation cost related to unvested stock options granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of stock options that vested during fiscal 2016 was $7.0 million . Restricted stock and RSUs are granted at a value equal to the market price of our common stock on the date of grant. Restrictions lapse with regard to restricted stock, and RSUs are settled in shares, at the end of their vesting periods, which generally range from one to four years. The following table presents a summary of our restricted stock and RSU activity as of and for the fiscal year ended May 29, 2016 : Shares (in millions) Weighted-Average Grant Date Fair Outstanding beginning of period 0.10 $51.19 Shares granted 0.06 62.38 Shares vested (0.03) 47.95 Shares canceled (0.02) 61.97 Outstanding end of period 0.11 $55.46 As of May 29, 2016 , there was $2.9 million of unrecognized compensation cost related to unvested restricted stock and RSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of restricted stock and RSUs that vested during fiscal 2016 , 2015 and 2014 was $1.6 million , $4.8 million and $2.3 million , respectively. Darden stock units are granted at a value equal to the market price of our common stock on the date of grant and will be settled in cash at the end of their vesting periods, which range between four and five years, at the then market price of our common stock. Compensation expense is measured based on the market price of our common stock each period, is amortized over the vesting period and the vested portion is carried as a liability on our accompanying consolidated balance sheets. We also entered into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested, unrecognized Darden stock units granted (see Note 8 for additional information). The following table presents a summary of our Darden stock unit activity as of and for the fiscal year ended May 29, 2016 : (All units settled in cash) Units (in millions) Weighted-Average Fair Value Per Unit Outstanding beginning of period 1.37 $65.54 Awards issued in conversion as a result of the separation of Four Corners 0.18 Units granted 0.32 64.75 Units vested (0.34) 63.91 Units canceled (0.10) 47.75 Outstanding end of period 1.43 $67.48 As of May 29, 2016 , our total Darden stock unit liability was $50.7 million , including $17.1 million recorded in other current liabilities and $33.6 million recorded in other liabilities on our consolidated balance sheets. As of May 31, 2015 , our total Darden stock unit liability was $46.1 million , including $16.2 million recorded in other current liabilities and $29.9 million recorded in other liabilities on our consolidated balance sheets. Based on the value of our common stock as of May 29, 2016 , there was $33.7 million of unrecognized compensation cost related to Darden stock units granted under our incentive plans. This cost is expected to be recognized over a weighted-average period of 2.8 years. The total fair value of Darden stock units that vested during fiscal 2016 was $21.5 million . The following table presents a summary of our cash-settled performance stock unit activity as of and for the fiscal year ended May 29, 2016 : (All units settled in cash) Units (in millions) Weighted-Average Per Unit Outstanding beginning of period 0.38 $65.54 Awards issued in conversion as a result of the separation of Four Corners 0.05 Units granted — — Units vested (0.17) 67.17 Units canceled (0.10) 43.35 Performance unit adjustment 0.05 43.84 Outstanding end of period 0.21 $67.48 As of May 29, 2016 , our cash-settled performance stock unit liability was $10.4 million , including $7.1 million recorded in other current liabilities and $3.3 million recorded in other liabilities on our consolidated balance sheets. As of May 31, 2015 , our cash-settled performance stock unit liability was $15.9 million , including $11.2 million recorded in other current liabilities and $4.7 million recorded in other liabilities on our consolidated balance sheets. Cash-settled performance stock units cliff vest three years from the date of grant, where 0.0 percent to 150.0 percent of the entire grant is earned or forfeited at the end of three years. The number of units that actually vests will be determined for each year based on the achievement of Company performance criteria set forth in the award agreement and may range from 0.0 percent to 150.0 percent of the annual target. All awards will be settled in cash. The awards are measured based on the market price of our common stock each period, are amortized over the service period and the vested portion is carried as a liability in our accompanying consolidated balance sheets. As of May 29, 2016 , there was $2.4 million of unrecognized compensation cost related to unvested performance stock units granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 1.1 years. The total fair value of cash-settled performance stock units that vested in fiscal 2016 was $11.4 million . The following table presents a summary of our equity-settled performance stock unit activity as of and for the fiscal year ended May 29, 2016 : Units (in millions) Weighted-Average Outstanding beginning of period — $— Units granted 0.19 65.23 Units vested — — Units canceled (0.02) 65.42 Outstanding end of period 0.17 $65.21 Beginning in fiscal 2016, two new types of equity-settled performance-based restricted stock units were issued, where 0.0 percent to 150.0 percent of the entire grant is earned or forfeited at the end of the respective vesting periods, which range from three to four years. The number of units that actually vest will be determined based on the achievement of performance criteria set forth in the award agreements and may range from 0.0 percent to 150.0 percent of target. Half of these performance awards, which are measured against company-specific targets, are granted at a value equal to the market price of our common stock on the date of grant, and amortized over the service period. The other half of these awards, which are measured against market-based targets, are measured based on estimated fair value as of the date of grant using a Monte Carlo simulation, and amortized over the service period. As of May 29, 2016, there was $8.5 million of unrecognized compensation cost related to unvested equity-settled performance stock units granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 2.7 years. The total fair value of equity-settled performance stock units that vested during fiscal 2016 was $0.0 million . We maintain an Employee Stock Purchase Plan to provide eligible employees who have completed one year of service (excluding senior officers subject to Section 16(b) of the Securities Exchange Act of 1934, and certain other employees who are employed less than full time or own 5 percent or more of our capital stock or that of any subsidiary) an opportunity to invest up to $5.0 thousand per calendar quarter to purchase shares of our common stock, subject to certain limitations. Under the plan, up to an aggregate of 3.6 million shares are available for purchase by employees at a purchase price that is 85.0 percent of the fair market value of our common stock on either the first or last trading day of each calendar quarter, whichever is lower. Cash received from employees pursuant to the plan during fiscal 2016 , 2015 and 2014 was $4.8 million , $5.2 million and $7.2 million , respectively. |
Workforce Reduction
Workforce Reduction | 12 Months Ended |
May 29, 2016 | |
Restructuring and Related Activities [Abstract] | |
Workforce Reduction | WORKFORCE REDUCTION During fiscal 2014 and 2015 , we performed 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 throughout fiscal 2014 and 2015. In accordance with these actions, we incurred employee termination benefits costs and other costs, which are included in general and administrative expenses in our consolidated statement of earnings as follows: (in millions) Fiscal Year 2016 (3) 2015 2014 Employee termination benefits (1) $ 0.2 $ 37.4 $ 17.2 Other (2) (0.1 ) 0.5 0.9 Total $ 0.1 $ 37.9 $ 18.1 (1) Includes salary and stock-based compensation expense. (2) Includes postemployment medical, outplacement and relocation costs. (3) Reflects subsequent adjustments to the fiscal 2014 and 2015 plans based on updated information. 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 May 29, 2016 : (in millions) Fiscal Year 2014 Plans Fiscal Year 2015 Plans Payments Adjustments Balance at May 29, 2016 Employee termination benefits (1) $ 13.4 $ 24.2 $ (35.9 ) $ 0.9 $ 2.6 Other 1.1 0.6 (1.3 ) (0.3 ) 0.1 Total $ 14.5 $ 24.8 $ (37.2 ) $ 0.6 $ 2.7 (1) Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. We expect the remaining liability to be paid by the second quarter of fiscal 2017. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
May 29, 2016 | |
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 were contingently liable for guarantees of subsidiary obligations under standby letters of credit. At May 29, 2016 and May 31, 2015 , we had $116.5 million and $124.2 million , respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. At May 29, 2016 and May 31, 2015 , we had $8.4 million and $14.0 million , respectively, of standby letters of credit related to contractual operating lease obligations and other payments. All standby letters of credit are renewable annually. At May 29, 2016 and May 31, 2015 , we had $154.2 million and $147.7 million , respectively, of guarantees associated with leased properties that have been assigned to third parties. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of these potential payments discounted at our weighted-average cost of capital at May 29, 2016 and May 31, 2015 , amounted to $119.3 million and $113.4 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. These guarantees expire over their respective lease terms, which range from fiscal 2017 through fiscal 2027 . 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
May 29, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On June 29, 2016 , the Board of Directors declared a cash dividend of $0.56 per share to be paid August 1, 2016 to all shareholders of record as of the close of business on July 11, 2016 . |
Quarterly Data
Quarterly Data | 12 Months Ended |
May 29, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Data | QUARTERLY DATA (UNAUDITED) The following table summarizes unaudited quarterly data for fiscal 2016 and fiscal 2015 : Fiscal 2016 - Quarters Ended (in millions, except per share data) Aug. 30 Nov. 29 Feb. 28 May 29 Total Sales $ 1,687.0 $ 1,608.8 $ 1,847.5 $ 1,790.2 $ 6,933.5 Earnings before income taxes 111.8 24.4 138.1 175.4 449.7 Earnings from continuing operations 81.0 30.1 108.2 140.4 359.7 Earnings (loss) from discontinued operations, net of tax 5.4 13.1 (2.4 ) (0.8 ) 15.3 Net earnings 86.4 43.2 105.8 139.6 375.0 Basic net earnings per share: Earnings from continuing operations 0.64 0.23 0.85 1.11 2.82 Earnings (loss) from discontinued operations 0.04 0.11 (0.02 ) (0.01 ) 0.12 Net earnings 0.68 0.34 0.83 1.10 2.94 Diluted net earnings per share: Earnings from continuing operations 0.63 0.23 0.84 1.10 2.78 Earnings (loss) from discontinued operations 0.04 0.10 (0.02 ) (0.01 ) 0.12 Net earnings 0.67 0.33 0.82 1.09 2.90 Dividends paid per share 0.55 0.55 0.50 0.50 2.10 Stock price: High 75.60 72.11 64.90 68.62 75.60 Low 63.68 53.38 55.01 61.90 53.38 Fiscal 2015 - Quarters Ended (in millions, except per share data) Aug. 24 Nov. 23 Feb. 22 May 31 (1) Total (2) Sales $ 1,595.8 $ 1,559.0 $ 1,730.9 $ 1,878.3 $ 6,764.0 Earnings (loss) before income taxes (43.7 ) (54.6 ) 147.1 126.5 175.3 Earnings (loss) from continuing operations (19.3 ) (30.8 ) 128.4 118.1 196.4 Earnings (loss) from discontinued operations, net of tax 522.5 (2.0 ) 5.4 (12.8 ) 513.1 Net earnings (loss) 503.2 (32.8 ) 133.8 105.3 709.5 Basic net earnings per share: Earnings (loss) from continuing operations (0.14 ) (0.24 ) 1.03 0.94 1.54 Earnings (loss) from discontinued operations 3.95 (0.02 ) 0.04 (0.11 ) 4.02 Net earnings (loss) 3.81 (0.26 ) 1.07 0.83 5.56 Diluted net earnings per share: Earnings (loss) from continuing operations (0.14 ) (0.24 ) 1.01 0.92 1.51 Earnings (loss) from discontinued operations 3.95 (0.02 ) 0.04 (0.10 ) 3.96 Net earnings (loss) 3.81 (0.26 ) 1.05 0.82 5.47 Dividends paid per share 0.55 0.55 0.55 0.55 2.20 Stock price: High 51.21 56.85 62.65 70.38 70.38 Low 43.56 46.70 54.96 61.31 43.56 (1) The quarter ended May 31, 2015 consisted of 14 weeks, while all other quarters consisted of 13 weeks. (2) The year ended May 31, 2015 consisted of 53 weeks, while the year ended May 29, 2016 consisted of 52 weeks. |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
May 29, 2016 | |
Accounting Policies [Abstract] | |
Operations and Principles of Consolidation | Operations and Principles of Consolidation The accompanying consolidated financial statements include the operations of Darden Restaurants, Inc. and its wholly owned subsidiaries (Darden, the Company, we, us or our). We own and operate the Olive Garden ® , LongHorn Steakhouse ® , The Capital Grille ® , Yard House ® , Bahama Breeze ® , Seasons 52 ® , and Eddie V's Prime Seafood ® and Wildfish Seafood Grille ® (collectively, "Eddie V's") restaurant brands located in the United States and Canada. Through subsidiaries, we own and operate all of our restaurants in the United States and Canada, except for 6 joint venture restaurants managed by us and 18 franchised restaurants. We also have 32 franchised restaurants in operation located in Latin America, the Middle East and Malaysia. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation On May 15, 2014, we entered into an agreement to sell Red Lobster and certain related assets and associated liabilities and closed the sale on July 28, 2014. For fiscal 2016 , 2015 and 2014 , all gains and losses on disposition, impairment charges and disposal costs, along with the sales, costs and expenses and income taxes attributable to the discontinued 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 3 for additional information. Unless otherwise noted, amounts and disclosures throughout these notes to consolidated financial statements relate to our continuing operations. |
Fiscal Year | Fiscal Year We operate on a 52/53-week fiscal year, which ends on the last Sunday in May. Fiscal 2016 , which ended May 29, 2016 , consisted of 52 weeks. Fiscal 2015 , which ended May 31, 2015 , consisted of 53 weeks and fiscal 2014 , which ended May 25, 2014 , consisted of 52 weeks. |
Use of Estimates | Use of Estimates 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 expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash and Cash Equivalents Cash equivalents include highly liquid investments such as U.S. Treasury bills, taxable municipal bonds and money market funds that have an original maturity of three months or less. Amounts receivable from credit card companies are also considered cash equivalents because they are both short term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. |
Receivables, Net | Receivables, Net Receivables, net of the allowance for doubtful accounts, represent their estimated net realizable value. Provisions for doubtful accounts are recorded based on historical collection experience and the age of the receivables. Receivables are written off when they are deemed uncollectible. See Note 12. |
Inventories | Inventories Inventories consist of food and beverages and are valued at the lower of weighted-average cost or market. |
Marketable Securities | Marketable Securities Available-for-sale securities are carried at fair value. Classification of marketable securities as current or noncurrent is dependent upon management’s intended holding period, the security’s maturity date, or both. Unrealized gains and losses, net of tax, on available-for-sale securities are carried in accumulated other comprehensive income (loss) within the consolidated financial statements and are reclassified into earnings when the securities mature or are sold. |
Land, Buildings and Equipment, Net | Land, Buildings and Equipment, Net Land, buildings and equipment are recorded at cost less accumulated depreciation. Building components are depreciated over estimated useful lives ranging from 7 to 40 years using the straight-line method. Leasehold improvements, which are reflected on our consolidated balance sheets as a component of buildings in land, buildings and equipment, net, are amortized over the lesser of the expected lease term, including cancelable option periods, or the estimated useful lives of the related assets using the straight-line method. Equipment is depreciated over estimated useful lives ranging from 2 to 15 years also using the straight-line method. See Note 5 for additional information. Gains and losses on the disposal of land, buildings and equipment are included in impairments and disposal of assets, net, while the write-off of undepreciated book value associated with the replacement of equipment in the normal course of business is recorded as a component of restaurant expenses in our accompanying consolidated statements of earnings. |
Capitalized Software Costs and Other Definite-Lived Intangibles | Capitalized Software Costs and Other Definite-Lived Intangibles Capitalized software, which is a component of other assets, is recorded at cost less accumulated amortization. Capitalized software is amortized using the straight-line method over estimated useful lives ranging from 3 to 10 years. The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 29, 2016 May 31, 2015 Capitalized software $ 169.7 $ 148.0 Accumulated amortization (93.1 ) (80.4 ) Capitalized software, net of accumulated amortization $ 76.6 $ 67.6 We have other definite-lived intangible assets, including assets related to the value of below-market leases resulting from our acquisitions that are included as a component of other assets on our consolidated balance sheets. We also have definite-lived intangible liabilities related to the value of above-market leases resulting from our acquisitions, that are included in other liabilities on our consolidated balance sheets. Definite-lived intangibles are amortized on a straight-line basis over estimated useful lives of 1 to 20 years. The cost and related accumulated amortization was as follows: (in millions) May 29, 2016 May 31, 2015 Other definite-lived intangibles $ 14.2 $ 15.1 Accumulated amortization (7.3 ) (7.3 ) Other definite-lived intangible assets, net of accumulated amortization $ 6.9 $ 7.8 Below-market leases $ 29.2 $ 29.2 Accumulated amortization (13.3 ) (11.5 ) Below-market leases, net of accumulated amortization $ 15.9 $ 17.7 Above-market leases $ (21.4 ) $ (21.4 ) Accumulated amortization 8.3 6.4 Above-market leases, net of accumulated amortization $ (13.1 ) $ (15.0 ) Amortization expense from continuing operations associated with capitalized software and other definite-lived intangibles included in depreciation and amortization in our accompanying consolidated statements of earnings was as follows: (in millions) Fiscal Year 2016 2015 2014 Amortization expense - capitalized software $ 14.9 $ 13.3 $ 7.0 Amortization expense - other definite-lived intangibles 0.9 1.0 1.1 Amortization expense from continuing operations associated with above- and-below-market leases included in restaurant expenses as a component of rent expense in our consolidated statements of earnings was as follows: (in millions) Fiscal Year 2016 2015 2014 Restaurant expense - below-market leases $ 1.8 $ 1.8 $ 1.8 Restaurant expense - above-market leases (1.4 ) (1.4 ) (1.4 ) Amortization of capitalized software and other definite-lived intangible assets will be approximately $17.6 million annually for fiscal 2017 through 2021 . |
Trust-Owned Life Insurance | Trust-Owned Life Insurance We have a trust that purchased life insurance policies covering certain of our officers and other key employees (trust-owned life insurance or TOLI). The trust is the owner and sole beneficiary of the TOLI policies. The policies were purchased to offset a portion of our obligations under our non-qualified deferred compensation plan. The cash surrender value for each policy is included in other assets, while changes in cash surrender values are included in general and administrative expenses. |
Liquor Licenses | Liquor Licenses The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in other assets. Liquor licenses are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Annual liquor license renewal fees are expensed over the renewal term. |
Goodwill and Trademarks | Goodwill and Trademarks We review our goodwill and trademarks for impairment annually, as of the first day of our fourth fiscal quarter or more frequently if indicators of impairment exist. Goodwill and trademarks are not subject to amortization and have been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. Our goodwill and trademark balances are allocated as follows: Goodwill Trademarks (in millions) May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 Olive Garden (1) $ 30.2 $ 30.2 $ — $ — LongHorn Steakhouse 49.3 49.3 307.8 307.8 The Capital Grille 401.6 401.7 147.0 147.0 Yard House 369.2 369.2 109.3 109.3 Eddie V's 22.0 22.0 10.5 10.5 Total $ 872.3 $ 872.4 $ 574.6 $ 574.6 (1) Goodwill related to Olive Garden is associated with the RARE Hospitality International, Inc. (RARE) acquisition and the estimated value of the direct benefits derived by Olive Garden as a result of the RARE acquisition. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements. The goodwill impairment test involves a two-step process. The first step is a comparison of each reporting unit’s fair value to its carrying value. We estimate fair value using the best information available, including market information and discounted cash flow projections (also referred to as the income approach). The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that reflects current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs and number of units, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. We validate our estimates of fair value under the income approach by comparing the values to fair value estimates using a market approach. A market approach estimates fair value by applying cash flow and sales multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. If the fair value of the reporting unit is higher than its carrying value, goodwill is deemed not to be impaired, and no further testing is required. If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporting unit was being acquired in a business combination. Specifically, fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, we would record an impairment loss for the difference. As part of our process for performing the step one impairment test of goodwill, we estimated the fair value of our reporting units utilizing the income and market approaches described above to derive an enterprise value of the Company. We reconciled the enterprise value to our overall estimated market capitalization. The estimated market capitalization considers recent trends in our market capitalization and an expected control premium, based on comparable recent and historical transactions. Based on the results of the step one impairment test, no impairment of goodwill was indicated for any of our brands. The fair value of trademarks is estimated and compared to the carrying value. We estimate the fair value of trademarks using the relief-from-royalty method, which requires assumptions related to projected sales from our annual long-range plan; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate. We recognize an impairment loss when the estimated fair value of the trademarks is less than carrying value. We completed our impairment test and concluded as of the date of the test, there was no impairment of the trademarks for LongHorn Steakhouse, The Capital Grille, Eddie V's and Yard House. We evaluate the useful lives of our other intangible assets, to determine if they are definite or indefinite-lived. A determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Land, buildings and equipment and certain other assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If such assets are determined to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined based on appraisals, sales prices of comparable assets or discounted future net cash flows expected to be generated by the assets. Restaurant sites and certain other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell. Restaurant sites and certain other assets to be disposed of are included in assets held for sale on our consolidated balance sheets when certain criteria are met. These criteria include the requirement that the likelihood of disposing of these assets within one year is probable. Assets not meeting the “held for sale” criteria remain in land, buildings and equipment until their disposal is probable within one year. We account for exit or disposal activities, including restaurant closures, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 420, Exit or Disposal Cost Obligations. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to that liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets, primarily land, associated with a closed restaurant, any gain or loss is recorded in the same caption within our consolidated statements of earnings as the original impairment. |
Insurance Accruals | Insurance Accruals Through the use of insurance program deductibles and self-insurance, we retain a significant portion of expected losses under our workers’ compensation, certain employee medical and general liability programs. Accrued liabilities have been recorded based on our estimates of the anticipated ultimate costs to settle all claims, both reported and not yet reported. |
Revenue Recognition | Revenue Recognition Sales, as presented in our consolidated statements of earnings, represents food and beverage product sold and is presented net of discounts, coupons, employee meals and complimentary meals. Revenue from restaurant sales is recognized when food and beverage products are sold. Sales taxes collected from customers and remitted to governmental authorities are presented on a net basis within sales in our consolidated statements of earnings. Revenue from the sale of franchises is recognized as income when substantially all of our material obligations under the franchise agreement have been performed. Continuing royalties, which are a percentage of net sales of franchised restaurants, are accrued as income when earned. Revenue from the sale of consumer packaged goods includes ongoing royalty fees based on a percentage of licensed retail product sales and is recognized upon the sale of product by our licensed manufacturers to retail outlets. |
Unearned Revenues | Unearned Revenues Unearned revenues represent our liability for gift cards that have been sold but not yet redeemed. We recognize sales from our gift cards when the gift card is redeemed by the customer. Although there are no expiration dates or dormancy fees for our gift cards, based on our analysis of our historical gift card redemption patterns, we can reasonably estimate the amount of gift cards for which redemption is remote, which is referred to as “breakage.” We recognize breakage within sales for unused gift card amounts in proportion to actual gift card redemptions, which is also referred to as the “redemption recognition” method. The estimated value of gift cards expected to remain unused is recognized over the expected period of redemption as the remaining gift card values are redeemed, generally over a period of 10 years. Utilizing this method, we estimate both the amount of breakage and the time period of redemption. If actual redemption patterns vary from our estimates, actual gift card breakage income may differ from the amounts recorded. We update our estimates of our redemption period and our breakage rate periodically and apply that rate to gift card redemptions. |
Food and Beverage Costs | Food and Beverage Costs Food and beverage costs include inventory, warehousing, related purchasing and distribution costs, and gains and losses on certain commodity derivative contracts. Vendor allowances received in connection with the purchase of a vendor’s products are recognized as a reduction of the related food and beverage costs as earned. Advance payments are made by the vendors based on estimates of volume to be purchased from the vendors and the terms of the agreement. As we make purchases from the vendors each period, we recognize the pro rata portion of allowances earned as a reduction of food and beverage costs for that period. Differences between estimated and actual purchases are settled in accordance with the terms of the agreements. Vendor agreements are generally for a period of one year or more and payments received are initially recorded as long-term liabilities. Amounts expected to be earned within one year are recorded as current liabilities. |
Income Taxes | Income Taxes We provide for federal and state income taxes currently payable as well as for those deferred because of temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Federal income tax credits are recorded as a reduction of income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. Interest recognized on reserves for uncertain tax positions is included in interest, net, in our consolidated statements of earnings. A corresponding liability for accrued interest is included as a component of other current liabilities on our consolidated balance sheets. Penalties, when incurred, are recognized in general and administrative expenses. ASC Topic 740, Income Taxes, requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not (i.e., a likelihood of more than 50 percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. See Note 13 for additional information. Income tax benefits credited to equity relate to tax benefits associated with amounts that are deductible for income tax purposes but do not affect earnings. These benefits are principally generated from employee exercises of non-qualified stock options and vesting of employee restricted stock awards. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as required by FASB ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial derivatives to manage interest rate and compensation risks inherent in our business operations. Our use of derivative instruments is currently limited to equity forwards contracts. These instruments are generally structured as hedges of the variability of cash flows related to forecasted transactions (cash flow hedges). However, we do at times enter into instruments designated as fair value hedges to reduce our exposure to changes in fair value of the related hedged item. We do not enter into derivative instruments for trading or speculative purposes, where changes in the cash flows or fair value of the derivative are not expected to offset changes in cash flows or fair value of the hedged item. However, we have entered into equity forwards to economically hedge changes in the fair value of employee investments in our non-qualified deferred compensation plan. All derivatives are recognized on the balance sheet at fair value. For those derivative instruments for which we intend to elect hedge accounting, on the date the derivative contract is entered into, we document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the consolidated balance sheet or to specific forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. To the extent our derivatives are effective in offsetting the variability of the hedged cash flows, and otherwise meet the cash flow hedge accounting criteria required by Topic 815 of the FASB ASC, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss), net of tax. These changes in fair value will be reclassified into earnings at the time of the forecasted transaction. Ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period in which it occurs. To the extent our derivatives are effective in mitigating changes in fair value, and otherwise meet the fair value hedge accounting criteria required by Topic 815 of the FASB ASC, 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. Cash flows related to derivatives are included in operating activities. See Note 8 for additional information. |
Leases | Leases For operating leases, we recognize rent expense on a straight-line basis over the expected lease term, including cancelable option periods where we are reasonably assured to exercise the options. Differences between amounts paid and amounts expensed are recorded as deferred rent. Capital leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Sale-leasebacks are transactions through which we sell assets (such as restaurant properties) at fair value and subsequently lease them back. The resulting leases generally qualify and are accounted for as operating leases. Financing leases are generally the product of a failed sale-leaseback transaction and result in retention of the "sold" assets within land, buildings and equipment with a financing lease obligation equal to the amount of proceeds received recorded as a component of other liabilities on our consolidated balance sheets. Within the provisions of certain of our leases, there are rent holidays and escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and escalations have been reflected in rent expense on a straight-line basis over the expected lease term. The lease term commences on the date when we have the right to control the use of the leased property, which is typically before rent payments are due under the terms of the lease. Many of our leases have renewal periods totaling 5 to 20 years, exercisable at our option and require payment of property taxes, insurance and maintenance costs in addition to the rent payments. The consolidated financial statements reflect the same lease term for amortizing leasehold improvements as we use to determine capital versus operating lease classifications and in calculating straight-line rent expense for each restaurant. Percentage rent expense is generally based on sales levels and is accrued at the point in time we determine that it is probable that such sales levels will be achieved. Amortization expense related to capital leases is included in depreciation and amortization expense in our consolidated statements of earnings. Landlord allowances are recorded based on contractual terms and are included in accounts receivable, net, and as a deferred rent liability and amortized as a reduction of rent expense on a straight-line basis over the expected lease term. Gains on sale-leaseback transactions are recorded as a deferred liability and amortized as a reduction of rent expense on a straight-line basis over the expected lease term. |
Pre-Opening Expenses | Pre-Opening Expenses Non-capital expenditures associated with opening new restaurants are expensed as incurred. |
Advertising | Advertising Production costs of commercials are charged to operations in the fiscal period the advertising is first aired. The costs of programming and other advertising, promotion and marketing programs are charged to operations in the fiscal period incurred and reported as marketing expenses on our consolidated statements of earnings. |
Stock-Based Compensation | Stock-Based Compensation We recognize the cost of employee service received in exchange for awards of equity instruments based on the grant date fair value of those awards. We recognize compensation expense on a straight-line basis over the employee service period for awards granted. We utilize the Black-Scholes option pricing model to estimate the fair value of stock option awards. The dividend yield has been estimated based upon our historical results and expectations for changes in dividend rates. The expected volatility was determined using historical stock prices. The risk-free interest rate was the rate available on zero coupon U.S. government obligations with a term approximating the expected life of each grant. The expected life was estimated based on the exercise history of previous grants, taking into consideration the remaining contractual period for outstanding awards. We utilize a Monte Carlo simulation to estimate the fair value of our market-based equity-settled performance awards. See Note 15 for further information. |
Net Earnings per Share | Net Earnings per Share Basic net earnings per share are computed by dividing net earnings by the weighted-average number of common shares outstanding for the reporting period. Diluted net earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Outstanding stock options, restricted stock and equity-settled performance stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding. These stock-based compensation instruments do not impact the numerator of the diluted net earnings per share computation. |
Foreign Currency | Foreign Currency The Canadian dollar is the functional currency for our Canadian restaurant operations and the Malaysian ringgit is the functional currency for our franchises based in Malaysia. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations are translated using the average exchange rates prevailing throughout the period. Translation gains and losses are reported as a separate component of other comprehensive income (loss). Aggregate cumulative translation losses were $1.2 million and $1.7 million at May 29, 2016 and May 31, 2015 , respectively. Net losses from foreign currency transactions recognized in our consolidated statements of earnings were $1.8 million and $1.4 million for fiscal 2016 and 2015 , respectively, and was not significant for fiscal 2014 . |
Application of New Accounting Standards | Application of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (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, 2017, which requires us to adopt these provisions in the first quarter of fiscal 2019. Early adoption is 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. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330). This update requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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 adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. 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 adoption is permitted. Other than the revised balance sheet presentation of deferred tax liabilities and assets, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This update requires a lessee to recognize on the balance sheet a liability to make lease payments and a corresponding right-of-use asset. The guidance also requires certain qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. This update is effective for annual and interim periods beginning after December 15, 2018, which will require us to adopt these provisions in the first quarter of fiscal 2020 using a modified retrospective approach. Early adoption is permitted. We have not yet selected a transition date nor have we determined the effect of the standard on our ongoing financial reporting. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). This update was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. 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. This guidance will be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. Early adoption is permitted. We have not yet selected a transition date nor have we determined the effect of the standard on our ongoing financial reporting. |
Summary Of Significant Accoun31
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
May 29, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of cash and cash equivalents are as follows: (in millions) May 29, 2016 May 31, 2015 Short-term investments $ 166.7 $ 455.5 Credit card receivables 81.1 77.8 Depository accounts 27.0 2.6 Total Cash and Cash Equivalents $ 274.8 $ 535.9 |
Depreciation And Amortization Expense From Continuing Operations Related To Land, Buildings And Equipment | Depreciation and amortization expense from continuing operations associated with buildings and equipment and losses on replacement of equipment were as follows: (in millions) Fiscal Year 2016 2015 2014 Depreciation and amortization on buildings and equipment $ 274.4 $ 305.0 $ 296.3 Losses on replacement of equipment 5.5 5.5 4.4 |
Capitalized Software Costs And Related Accumulated Amortization | The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 29, 2016 May 31, 2015 Capitalized software $ 169.7 $ 148.0 Accumulated amortization (93.1 ) (80.4 ) Capitalized software, net of accumulated amortization $ 76.6 $ 67.6 |
Costs And Accumulated Amortization Of Acquired Definite-Lived Intangible Assets | The cost and related accumulated amortization was as follows: (in millions) May 29, 2016 May 31, 2015 Other definite-lived intangibles $ 14.2 $ 15.1 Accumulated amortization (7.3 ) (7.3 ) Other definite-lived intangible assets, net of accumulated amortization $ 6.9 $ 7.8 Below-market leases $ 29.2 $ 29.2 Accumulated amortization (13.3 ) (11.5 ) Below-market leases, net of accumulated amortization $ 15.9 $ 17.7 Above-market leases $ (21.4 ) $ (21.4 ) Accumulated amortization 8.3 6.4 Above-market leases, net of accumulated amortization $ (13.1 ) $ (15.0 ) |
Amortization Expense Associated With Capitalized Software And Other Definite Lived Intangibles | Amortization expense from continuing operations associated with capitalized software and other definite-lived intangibles included in depreciation and amortization in our accompanying consolidated statements of earnings was as follows: (in millions) Fiscal Year 2016 2015 2014 Amortization expense - capitalized software $ 14.9 $ 13.3 $ 7.0 Amortization expense - other definite-lived intangibles 0.9 1.0 1.1 |
Amortization Expense Related To Acquired Definite-Lived Intangible Assets | Amortization expense from continuing operations associated with above- and-below-market leases included in restaurant expenses as a component of rent expense in our consolidated statements of earnings was as follows: (in millions) Fiscal Year 2016 2015 2014 Restaurant expense - below-market leases $ 1.8 $ 1.8 $ 1.8 Restaurant expense - above-market leases (1.4 ) (1.4 ) (1.4 ) |
Goodwill And Trademark Balances | Our goodwill and trademark balances are allocated as follows: Goodwill Trademarks (in millions) May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 Olive Garden (1) $ 30.2 $ 30.2 $ — $ — LongHorn Steakhouse 49.3 49.3 307.8 307.8 The Capital Grille 401.6 401.7 147.0 147.0 Yard House 369.2 369.2 109.3 109.3 Eddie V's 22.0 22.0 10.5 10.5 Total $ 872.3 $ 872.4 $ 574.6 $ 574.6 (1) Goodwill related to Olive Garden is associated with the RARE Hospitality International, Inc. (RARE) acquisition and the estimated value of the direct benefits derived by Olive Garden as a result of the RARE acquisition. |
Basic And Diluted Earnings Per Common Share | The following table presents the computation of basic and diluted net earnings per common share: (in millions, except per share data) Fiscal Year 2016 2015 2014 Earnings from continuing operations $ 359.7 $ 196.4 $ 183.2 Earnings from discontinued operations 15.3 513.1 103.0 Net earnings $ 375.0 $ 709.5 $ 286.2 Average common shares outstanding – Basic 127.4 127.7 131.0 Effect of dilutive stock-based compensation 1.9 2.0 2.2 Average common shares outstanding – Diluted 129.3 129.7 133.2 Basic net earnings per share: Earnings from continuing operations $ 2.82 $ 1.54 $ 1.40 Earnings from discontinued operations 0.12 4.02 0.78 Net earnings $ 2.94 $ 5.56 $ 2.18 Diluted net earnings per share: Earnings from continuing operations $ 2.78 $ 1.51 $ 1.38 Earnings from discontinued operations 0.12 3.96 0.77 Net earnings $ 2.90 $ 5.47 $ 2.15 |
Restricted Stock And Options To Purchase Shares Of Common Stock Excluded From Calculation Of Diluted Earnings Per Share | Restricted stock and options to purchase shares of our common stock excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows: (in millions) Fiscal Year Ended May 29, 2016 May 31, 2015 May 25, 2014 Anti-dilutive restricted stock and options 0.3 0.1 4.2 |
Dispositions (Tables)
Dispositions (Tables) | 12 Months Ended |
May 29, 2016 | |
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: (in millions) Fiscal Year Ended May 29, 2016 May 31, 2015 May 25, 2014 Sales $ — $ 400.4 $ 2,472.1 Costs and expenses: Restaurant and marketing expenses 1.8 353.0 2,134.1 Depreciation and amortization — 0.2 124.6 Other income and expenses (1) (20.5 ) (810.7 ) 78.1 Earnings before income taxes 18.7 857.9 135.3 Income tax expense 3.4 344.8 32.3 Earnings from discontinued operations, net of tax $ 15.3 $ 513.1 $ 103.0 (1) Amounts for fiscal years 2016 and 2015 primarily relate to the gain recognized on the sale of Red Lobster. |
Impairments and Disposal of A33
Impairments and Disposal of Assets, Net Impairments and Disposal of Assets, Net (Tables) | 12 Months Ended |
May 29, 2016 | |
Asset Impairment Charges [Abstract] | |
Impairments and Disposal of Assets | Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings are comprised of the following: Fiscal Year (in millions) 2016 2015 2014 Restaurant impairments $ 9.2 $ 49.4 $ 11.5 Disposal gains (5.9 ) (4.2 ) (1.9 ) Other 2.5 16.9 6.8 Impairments and disposal of assets, net $ 5.8 $ 62.1 $ 16.4 |
Land, Buildings And Equipment34
Land, Buildings And Equipment, Net (Tables) | 12 Months Ended |
May 29, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Components Of Land, Buildings And Equipment, Net | The components of land, buildings and equipment, net, are as follows: (in millions) May 29, 2016 May 31, 2015 Land $ 133.1 $ 633.5 Buildings 2,297.1 3,338.9 Equipment 1,318.5 1,439.1 Assets under capital leases 71.9 72.0 Construction in progress 40.0 36.9 Total land, buildings and equipment $ 3,860.6 $ 5,520.4 Less accumulated depreciation and amortization (1,788.3 ) (2,277.7 ) Less amortization associated with assets under capital leases (30.7 ) (26.9 ) Land, buildings and equipment, net $ 2,041.6 $ 3,215.8 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 29, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 29, 2016 and for the year ended Sales $ 3,838.6 $ 1,587.7 $ 514.1 $ 993.1 $ — $ 6,933.5 Restaurant and marketing expenses 3,079.4 1,312.4 413.6 825.0 — 5,630.4 Segment profit $ 759.2 $ 275.3 $ 100.5 $ 168.1 $ — $ 1,303.1 Depreciation and amortization $ 124.1 $ 67.9 $ 27.1 $ 50.5 $ 20.6 $ 290.2 Impairments and disposal of assets, net (1.4 ) (1.5 ) 0.7 6.0 2.0 5.8 Segment assets 939.2 969.2 857.0 987.6 829.6 4,582.6 Purchases of land, buildings and equipment 95.6 46.9 21.4 60.5 3.9 228.3 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 31, 2015 and for the year ended Sales $ 3,789.6 $ 1,544.7 $ 500.1 $ 929.6 $ — $ 6,764.0 Restaurant and marketing expenses 3,089.1 1,304.8 405.2 785.7 — 5,584.8 Segment profit $ 700.5 $ 239.9 $ 94.9 $ 143.9 $ — $ 1,179.2 Depreciation and amortization $ 149.8 $ 71.6 $ 26.4 $ 47.3 $ 24.2 $ 319.3 Impairments and disposal of assets, net 28.2 0.4 — 21.0 12.5 62.1 Segment assets 1,625.1 1,261.1 865.6 1,054.6 1,188.3 5,994.7 Purchases of land, buildings and equipment 118.9 67.4 22.9 83.4 3.9 296.5 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated For the year ended May 25, 2014 Sales $ 3,643.1 $ 1,383.9 $ 441.6 $ 817.0 $ — $ 6,285.6 Restaurant and marketing expenses 2,995.1 1,179.6 360.2 707.9 — 5,242.8 Segment profit $ 648.0 $ 204.3 $ 81.4 $ 109.1 $ — $ 1,042.8 Depreciation and amortization $ 149.6 $ 66.7 $ 24.3 $ 42.7 $ 21.1 $ 304.4 Impairments and disposal of assets, net 3.3 0.8 4.8 3.7 3.8 16.4 Purchases of land, buildings and equipment 131.9 114.4 42.3 123.1 3.1 414.8 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliation of segment profit to earnings from continuing operations before income taxes: Fiscal Year Ended (in millions) May 29, 2016 May 31, 2015 May 25, 2014 Segment profit $ 1,303.1 $ 1,179.2 $ 1,042.8 Less general and administrative expenses (384.9 ) (430.2 ) (413.1 ) Less depreciation and amortization (290.2 ) (319.3 ) (304.4 ) Less impairments and disposal of assets, net (5.8 ) (62.1 ) (16.4 ) Less interest, net (172.5 ) (192.3 ) (134.3 ) Earnings before income taxes $ 449.7 $ 175.3 $ 174.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
May 29, 2016 | |
Debt Disclosure [Abstract] | |
Components Of Long-Term Debt | The components of long-term debt are as follows: (in millions) May 29, 2016 May 31, 2015 Variable-rate term loan (1.68% at May 31, 2015) due August 2017 $ — $ 285.0 6.200% senior notes due October 2017 — 500.0 4.500% senior notes due October 2021 — 121.9 3.350% senior notes due November 2022 — 111.1 4.520% senior notes due August 2024 — 10.0 6.000% senior notes due August 2035 150.0 150.0 6.800% senior notes due October 2037 300.0 300.0 Total long-term debt $ 450.0 $ 1,478.0 Fair value hedge — 3.6 Less unamortized discount and issuance costs (10.0 ) (14.3 ) Total long-term debt less unamortized discount and issuance costs $ 440.0 $ 1,467.3 Less current portion — (15.0 ) Long-term debt, excluding current portion $ 440.0 $ 1,452.3 |
Schedule of Maturities of Long-term Debt | The aggregate contractual maturities of long-term debt for each of the five fiscal years subsequent to May 29, 2016 , and thereafter are as follows: (in millions) Fiscal Year 2017 2018 2019 2020 2021 Thereafter Debt repayments $ — $ — $ — $ — $ — $ 450.0 |
Derivative Instruments And He37
Derivative Instruments And Hedging Activities (Tables) | 12 Months Ended |
May 29, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments | The notional and fair values of our derivative contracts are as follows: (in millions) Notional Values Balance Fair Values Derivative Assets Derivative Liabilities May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 May 29, 2016 May 31, 2015 Derivative contracts designated as hedging instruments Equity forwards $ 14.9 $ 11.4 (1 ) $ 1.2 $ 0.4 $ — $ — Interest rate related — 200.0 (1 ) — 3.6 — — $ 1.2 $ 4.0 $ — $ — Derivative contracts not designated as hedging instruments Equity forwards $ 28.2 $ 51.7 (1 ) $ 2.6 $ 1.3 $ — $ — $ 2.6 $ 1.3 $ — $ — Total derivative contracts $ 3.8 $ 5.3 $ — $ — (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 Hedges | |
Derivative Instruments, Gain (Loss) [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) Recognized in Location of from AOCI to Earnings Amount of Gain (Loss) Reclassified from AOCI to Location of Earnings (1) Amount of Gain (Loss) Recognized in Fiscal Year Fiscal Year Fiscal Year 2016 2015 2014 2016 2015 2014 2016 2015 2014 Equity $ 2.0 $ 2.1 $ (3.5 ) (2) $ 2.1 $ (1.0 ) $ (0.8 ) (2) $ 0.9 $ 1.1 $ 1.4 Interest rate — — — Interest, net (37.4 ) (45.7 ) (10.3 ) Interest, net — — — $ 2.0 $ 2.1 $ (3.5 ) $ (35.3 ) $ (46.7 ) $ (11.1 ) $ 0.9 $ 1.1 $ 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 restaurant labor expenses and general and administrative expenses. |
Not Designated As Hedging Instrument | |
Derivative Instruments, Gain (Loss) [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: (in millions) Location of Gain (Loss) Recognized in Earnings Amount of Gain (Loss) Fiscal Year 2016 2015 2014 Equity forwards Restaurant labor expenses $ 3.9 $ 4.0 $ (0.5 ) Equity forwards General and administrative expenses 7.5 9.2 (1.3 ) $ 11.4 $ 13.2 $ (1.8 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 29, 2016 | |
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 at May 29, 2016 and May 31, 2015 : Items Measured at Fair Value at May 29, 2016 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Fixed-income securities: Corporate bonds (1) $ 2.0 $ — $ 2.0 $ — U.S. Treasury securities (2) 3.9 3.9 — — Mortgage-backed securities (1) 1.0 — 1.0 — Derivatives: Equity forwards (3) 3.8 — 3.8 — Total $ 10.7 $ 3.9 $ 6.8 $ — Items Measured at Fair Value at May 31, 2015 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Fixed-income securities: Corporate bonds (1) $ 2.2 $ — $ 2.2 $ — U.S. Treasury securities (2) 5.0 5.0 — — Mortgage-backed securities (1) 1.6 — 1.6 — Derivatives: Equity forwards (3) 1.7 — 1.7 — Interest rate swaps (4) 3.6 — 3.6 — Total $ 14.1 $ 5.0 $ 9.1 $ — (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. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
May 29, 2016 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), net of tax, are as follows: (in millions) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Marketable Securities Unrealized Gains (Losses) on Derivatives Benefit Plan Funding Position Accumulated Other Comprehensive Income (Loss) Balances at May 25, 2014 $ (4.7 ) $ 0.1 $ (50.4 ) $ (73.1 ) $ (128.1 ) Gain (loss) (4.3 ) — 2.1 3.1 0.9 Reclassification realized in net earnings 7.3 — 29.2 4.1 40.6 Balances at May 31, 2015 $ (1.7 ) $ 0.1 $ (19.1 ) $ (65.9 ) $ (86.6 ) Gain (loss) 0.5 — 2.0 (23.5 ) (21.0 ) Reclassification realized in net earnings — — 21.0 (0.4 ) 20.6 Balances at May 29, 2016 $ (1.2 ) $ 0.1 $ 3.9 $ (89.8 ) $ (87.0 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the amounts and line items in our consolidated statements of earnings where other adjustments reclassified from AOCI into net earnings were recorded: Fiscal Year (in millions) AOCI Components Location of Gain (Loss) Recognized in Earnings May 29, May 31, Derivatives Equity contracts (1) $ 2.1 $ (1.0 ) Interest rate contracts (2) (37.4 ) (45.7 ) Total before tax $ (35.3 ) $ (46.7 ) Tax benefit 14.3 17.5 Net of tax $ (21.0 ) $ (29.2 ) Benefit plan funding position Pension/postretirement plans Actuarial losses (3) $ (2.8 ) $ (2.6 ) Settlement loss (3) — (6.1 ) Total - pension/postretirement plans $ (2.8 ) $ (8.7 ) Recognized net actuarial gain - other plans (4) 3.4 1.8 Total before tax $ 0.6 $ (6.9 ) Tax benefit (0.2 ) 2.8 Net of tax $ 0.4 $ (4.1 ) (1) Primarily included in restaurant labor costs and general and administrative expenses. See Note 8 for additional details. (2) Included in interest, net, on our consolidated statements of earnings. Reclassifications primarily related to the acceleration of hedge loss amortization resulting from the pay down of the associated long-term debt. (3) Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of restaurant labor expenses and general and administrative expenses. See Note 14 for additional details. (4) Included in the computation of net periodic benefit costs - other plans, which is a component of general and administrative expenses. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 29, 2016 | |
Leases [Abstract] | |
Analysis Of Rent Expense | An analysis of rent expense incurred related to continuing operations is as follows: (in millions) Fiscal Year 2016 2015 2014 Restaurant minimum rent (1) $ 233.6 $ 167.0 $ 146.4 Restaurant rent averaging expense 15.9 16.7 26.9 Restaurant percentage rent 8.0 7.7 6.6 Other 8.1 3.5 5.5 Total rent expense $ 265.6 $ 194.9 $ 185.4 (1) The increase for fiscal 2016 is primarily related to the REIT transaction and individual sale-leaseback transactions. See Note 2 for further information. |
Annual Future Lease Commitments | The annual future lease commitments under capital lease obligations and noncancelable operating and financing leases, including those related to restaurants reported as discontinued operations, for each of the five fiscal years subsequent to May 29, 2016 and thereafter is as follows: (in millions) Fiscal Year Capital Financing Operating 2017 $ 5.9 $ 7.1 $ 297.6 2018 6.0 7.2 287.6 2019 6.0 7.4 271.5 2020 6.1 7.5 255.2 2021 6.0 7.6 232.8 Thereafter 49.0 115.8 1,484.6 Total future lease commitments $ 79.0 $ 152.6 $ 2,829.3 Less imputed interest (at 6.5%), (various) (27.0 ) (76.6 ) Present value of future lease commitments $ 52.0 $ 76.0 Less current maturities (2.7 ) (1.3 ) Obligations under capital and financing leases, net of current maturities $ 49.3 $ 74.7 |
Additional Financial Informat41
Additional Financial Information (Tables) | 12 Months Ended |
May 29, 2016 | |
Additional Financial Information [Abstract] | |
Receivables From Various Parties | Balance Sheets (in millions) May 29, 2016 May 31, 2015 Receivables, net Retail outlet gift card sales $ 43.9 $ 47.1 Landlord allowances due 3.7 12.9 Miscellaneous 16.9 18.9 Allowance for doubtful accounts (0.5 ) (0.9 ) $ 64.0 $ 78.0 Other Current Liabilities Non-qualified deferred compensation plan $ 194.0 $ 209.6 Sales and other taxes 58.7 63.9 Insurance-related 36.3 37.4 Employee benefits 35.8 34.3 Contingent proceeds - Red Lobster disposition — 31.5 Accrued interest 5.1 11.4 Miscellaneous 70.7 61.0 $ 400.6 $ 449.1 |
Components Of Other Current Liabilities | Balance Sheets (in millions) May 29, 2016 May 31, 2015 Receivables, net Retail outlet gift card sales $ 43.9 $ 47.1 Landlord allowances due 3.7 12.9 Miscellaneous 16.9 18.9 Allowance for doubtful accounts (0.5 ) (0.9 ) $ 64.0 $ 78.0 Other Current Liabilities Non-qualified deferred compensation plan $ 194.0 $ 209.6 Sales and other taxes 58.7 63.9 Insurance-related 36.3 37.4 Employee benefits 35.8 34.3 Contingent proceeds - Red Lobster disposition — 31.5 Accrued interest 5.1 11.4 Miscellaneous 70.7 61.0 $ 400.6 $ 449.1 |
Components Of Interest | Statements of Earnings Fiscal Year (in millions) 2016 2015 2014 Interest expense (1) $ 165.4 $ 186.2 $ 134.0 Imputed interest on capital and financing leases 8.9 8.0 3.5 Capitalized interest (0.7 ) (1.3 ) (2.6 ) Interest income (1.1 ) (0.6 ) (0.6 ) Interest, net $ 172.5 $ 192.3 $ 134.3 (1) Interest expense in fiscal 2016 and 2015 includes approximately $106.8 million and $91.3 million , respectively, of expenses associated with the retirement of long-term debt. See Note 7. |
Schedule of Cash Flow, Supplemental Disclosures | Statements of Cash Flows Fiscal Year (in millions) 2016 2015 2014 Cash paid during the fiscal year for: Interest, net of amounts capitalized (1) $ 140.8 $ 142.8 $ 117.5 Income taxes, net of refunds (2) $ 128.0 $ 290.7 $ 90.0 Non-cash investing and financing activities: Increase in land, buildings and equipment through accrued purchases $ 14.9 $ 11.1 $ 24.4 Net book value of assets distributed in Four Corners separation, net of deferred tax liabilities $ 750.4 $ — $ — (1) Interest paid in fiscal 2016 and 2015 includes approximately $68.7 million and $44.0 million , respectively, of payments associated with the retirement of long-term debt. See Note 7. (2) Income taxes paid in fiscal 2015 were higher primarily as a result of the gain recognized on the sale of Red Lobster. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Allocation Of Total Income Tax Expense | Total income tax expense was allocated as follows: (in millions) Fiscal Year 2016 2015 2014 Earnings from continuing operations $ 90.0 $ (21.1 ) $ (8.6 ) Earnings from discontinued operations 3.4 344.8 32.3 Total consolidated income tax expense $ 93.4 $ 323.7 $ 23.7 |
Components Of Earnings Before Income Tax And Provision For Income Taxes | The components of earnings from continuing operations before income taxes and the provision for income taxes thereon are as follows: (in millions) Fiscal Year 2016 2015 2014 Earnings from continuing operations before income taxes: U.S. $ 450.6 $ 179.9 $ 189.0 Foreign (0.9 ) (4.6 ) (14.4 ) Earnings from continuing operations before income taxes $ 449.7 $ 175.3 $ 174.6 Income taxes: Current: Federal $ 89.1 $ (12.7 ) $ 39.5 State and local 2.7 (8.0 ) 5.4 Foreign 1.9 6.9 3.0 Total current $ 93.7 $ (13.8 ) $ 47.9 Deferred (principally U.S.): Federal $ (2.4 ) $ — $ (43.7 ) State and local (1.3 ) (7.3 ) (12.8 ) Total deferred $ (3.7 ) $ (7.3 ) $ (56.5 ) Total income taxes $ 90.0 $ (21.1 ) $ (8.6 ) |
Effective Income Tax Rate Reconciliation | The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings: Fiscal Year 2016 2015 2014 U.S. statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of federal tax benefits 1.2 (6.6 ) (2.7 ) Benefit of federal income tax credits (12.5 ) (34.0 ) (30.3 ) Other, net (3.7 ) (6.4 ) (6.9 ) Effective income tax rate 20.0 % (12.0 )% (4.9 )% |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (in millions) Balances at May 31, 2015 $ 13.7 Additions related to current-year tax positions 3.9 Reductions related to prior-year tax positions (0.4 ) Reductions due to settlements with taxing authorities (1.0 ) Reductions to tax positions due to statute expiration (1.9 ) Balances at May 29, 2016 $ 14.3 |
Interest Expense On Unrecognized Tax Benefits | Interest expense associated with unrecognized tax benefits, excluding the release of accrued interest related to prior year matters due to settlement or the lapse of the statute of limitations was as follows: (in millions) Fiscal Year 2016 2015 2014 Interest expense on unrecognized tax benefits $ 0.5 $ 1.1 $ 0.4 |
Tax Effects On Deferred Tax Assets And Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: (in millions) May 29, 2016 May 31, 2015 Accrued liabilities $ 109.4 $ 104.9 Compensation and employee benefits 176.0 186.6 Deferred rent and interest income 97.8 88.9 Net operating loss, credit and charitable contribution carryforwards 47.1 50.1 Other 5.9 6.5 Gross deferred tax assets $ 436.2 $ 437.0 Valuation allowance (17.0 ) (13.5 ) Deferred tax assets, net of valuation allowance $ 419.2 $ 423.5 Trademarks and other acquisition related intangibles (226.4 ) (220.6 ) Buildings and equipment (238.6 ) (337.1 ) Capitalized software and other assets (34.0 ) (28.1 ) Other (12.1 ) (22.1 ) Gross deferred tax liabilities $ (511.1 ) $ (607.9 ) Net deferred tax liabilities $ (91.9 ) $ (184.4 ) |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
May 29, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Funding Of Defined Benefit Pension Plans And Postretirement Benefit Plans | Fundings related to the defined benefit pension plans and postretirement benefit plans, which are funded on a pay-as-you-go basis, were as follows: (in millions) Fiscal Year 2016 2015 2014 Defined benefit pension plans funding $ 25.4 $ 0.4 $ 0.4 Postretirement benefit plan funding 1.1 1.1 0.9 |
Change In Benefit Obligation | The following provides a reconciliation of the changes in the plan benefit obligation, fair value of plan assets and the funded status of the plans as of May 29, 2016 and May 31, 2015 : (in millions) Defined Benefit Plans Postretirement Benefit Plan 2016 2015 2016 2015 Change in Benefit Obligation: Benefit obligation at beginning of period $ 288.4 $ 283.9 $ 18.0 $ 38.5 Service cost — 1.1 0.2 0.5 Interest cost 10.6 10.0 0.8 1.0 Plan amendments — — — (26.9 ) Plan settlements — (15.8 ) — — Participant contributions — — — 0.4 Benefits paid (15.9 ) (8.6 ) (1.1 ) (1.5 ) Actuarial loss 15.4 17.8 2.0 6.0 Benefit obligation at end of period $ 298.5 $ 288.4 $ 19.9 $ 18.0 |
Change In Plan Assets | Change in Plan Assets: Fair value at beginning of period $ 236.6 $ 243.9 $ — $ — Actual return on plan assets (4.1 ) 16.7 — — Employer contributions 25.4 0.4 1.1 1.1 Plan settlements — (15.8 ) — — Participant contributions — — — 0.4 Benefits paid (15.9 ) (8.6 ) (1.1 ) (1.5 ) Fair value at end of period $ 242.0 $ 236.6 $ — $ — |
Reconciliation Of The Plan's Funded Status | Unfunded status at end of period $ (56.5 ) $ (51.8 ) $ (19.9 ) $ (18.0 ) |
Funded Status And Amounts Recognized In Accumulated Other Comprehensive Income (Loss) | The following is a detail of the balance sheet components of each of our plans and a reconciliation of the amounts included in accumulated other comprehensive income (loss): (in millions) Defined Benefit Plans Postretirement Benefit Plan May 29, May 31, May 29, May 31, Components of the Consolidated Balance Sheets: Current liabilities $ — $ — $ 1.3 $ 1.1 Noncurrent liabilities 56.5 51.8 18.6 16.9 Net amounts recognized $ 56.5 $ 51.8 $ 19.9 $ 18.0 Amounts Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Prior service (cost) credit $ — $ — $ 11.9 $ 14.9 Net actuarial gain (loss) (87.9 ) (68.7 ) (9.5 ) (9.0 ) Net amounts recognized $ (87.9 ) $ (68.7 ) $ 2.4 $ 5.9 |
Accumulated Benefit Obligations In Excess Of Plan Assets | The following is a summary of our accumulated and projected benefit obligations for our defined benefit plans: (in millions) May 29, 2016 May 31, 2015 Accumulated benefit obligation for all defined benefit plans $ 298.5 $ 288.4 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 298.5 288.4 Fair value of plan assets 242.0 236.6 Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets 298.5 288.4 |
Weighted-Average Assumptions Used | The following table presents the weighted-average assumptions used to determine benefit obligations and net expense: Defined Benefit Plans Postretirement Benefit Plan 2016 2015 2016 2015 Weighted-average assumptions used to determine benefit obligations at May 29 and May 31 (1) Discount rate 4.18 % 4.43 % 4.00 % 4.22 % Rate of future compensation increases N/A N/A N/A N/A Weighted-average assumptions used to determine net expense for fiscal years ended May 29 and May 31 (2) Discount rate 4.43 % 4.41 % 4.22 % 4.26 % Expected long-term rate of return on plan assets 6.50 % 7.00 % N/A N/A Rate of future compensation increases N/A 3.86 % N/A N/A (1) Determined as of the end of fiscal year. (2) Determined as of the beginning of fiscal year. |
Components Of Net Periodic Benefit Cost | Components of net periodic benefit cost included in earnings are as follows: (in millions) Defined Benefit Plans Postretirement Benefit Plan 2016 2015 2014 2016 2015 2014 Service cost $ — $ 1.1 $ 4.4 $ 0.2 $ 0.5 $ 0.7 Interest cost 10.6 10.0 10.2 0.8 1.0 1.4 Expected return on plan assets (14.5 ) (15.2 ) (17.1 ) — — — Amortization of unrecognized prior service cost — — 0.1 (4.8 ) (2.8 ) (0.1 ) Recognized net actuarial loss 2.8 2.6 9.0 1.2 0.8 — Settlement loss recognized — 6.1 — — — — Curtailment gain recognized — — (0.5 ) — — — Net pension and postretirement cost (benefit) $ (1.1 ) $ 4.6 $ 6.1 $ (2.6 ) $ (0.5 ) $ 2.0 |
Fair Values Of Defined Benefit Pension Plans Assets | The fair values of the defined benefit pension plans assets at their measurement dates of May 29, 2016 and May 31, 2015 , are as follows: Items Measured at Fair Value at May 29, 2016 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity: U.S. Commingled Funds (1) $ 75.3 $ — $ 75.3 $ — International Commingled Fund (2) 24.9 — 24.9 — Emerging Market Commingled Funds (3) 6.8 — 6.8 — Emerging Market Mutual Fund (4) 5.9 5.9 — — Real Estate Commingled Fund (5) 7.5 — 7.5 — Fixed-Income: U.S. Treasury Securities (6) 25.9 25.9 — — U.S. Corporate Securities (6) 37.8 — 37.8 — International Securities (6) 6.3 — 6.3 — Public Sector Utility Securities (6) 14.8 — 14.8 — Global Fixed-Income Commingled Fund (7) 24.4 — 24.4 — U.S. Fixed-Income Commingled Funds (8) 10.3 — 10.3 — Cash & Accruals 2.1 2.1 — — Total $ 242.0 $ 33.9 $ 208.1 $ — Items Measured at Fair Value at May 31, 2015 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Equity: U.S. Commingled Funds (1) $ 75.8 $ — $ 75.8 $ — International Commingled Fund (2) 25.7 — 25.7 — Emerging Market Commingled Funds (3) 13.1 — 13.1 — Real Estate Commingled Fund (5) 6.9 — 6.9 — Fixed-Income: U.S. Treasury Securities (6) 25.1 25.1 — — U.S. Corporate Securities (6) 41.4 — 41.4 — International Securities (6) 8.3 — 8.3 — Public Sector Utility Securities (6) 14.5 — 14.5 — Global Fixed-Income Commingled Fund (7) 24.0 — 24.0 — Cash & Accruals 1.8 1.8 — — Total $ 236.6 $ 26.9 $ 209.7 $ — (1) U.S. commingled funds are comprised of investments in funds that purchase publicly traded U.S. common stock for total return purposes. Investments are valued using a unit price or net asset value (NAV) based on the fair value of the underlying investments of the funds. There are no redemption restrictions associated with these funds. (2) International commingled fund is comprised of investments in funds that purchase publicly traded non-U.S. common stock for total return purposes. Investments are valued using a unit price or NAV based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. (3) Emerging market commingled funds and developed market securities are comprised of investments in funds that purchase publicly traded common stock of non-U.S. companies in emerging economies for total return purposes. Funds are valued using a unit price or NAV based on the fair value of the underlying investments of the funds. There are no redemption restrictions associated with these funds. (4) Emerging market mutual fund is comprised of securities associated with emerging markets and frontier markets. Fund is valued using quoted market prices from national exchanges. (5) Real estate commingled fund is comprised of investments in funds that purchase publicly traded common stock of real estate companies for purposes of total return. These investments are valued using a unit price or NAV based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. (6) Fixed-income securities are comprised of investments in government and corporate debt securities. These securities are valued by the trustee at closing prices from national exchanges or pricing vendors on the valuation date. (7) Global fixed-income commingled fund is comprised of investments in U.S. and non-U.S. government fixed-income securities. Investments are valued using a unit price or NAV based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. |
Expected Benefit Payments | The following benefit payments are expected to be paid between fiscal 2017 and fiscal 2026 : (in millions) Defined Benefit Plans Postretirement Benefit Plan 2017 $ 12.5 $ 1.3 2018 12.6 1.3 2019 13.0 1.3 2020 13.7 1.3 2021 14.2 1.3 2022-2026 79.3 6.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 29, 2016 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |
Recognized Stock-Based Compensation Expense | Stock-based compensation expense included in continuing operations was as follows: (in millions) Fiscal Year 2016 2015 2014 Stock options (1) $ 7.8 $ 20.9 $ 19.3 Restricted stock/restricted stock units 1.6 2.0 0.9 Darden stock units 15.9 13.3 12.3 Cash-settled performance stock units (2) 6.5 14.5 2.5 Equity-settled performance stock units 2.7 — — Employee stock purchase plan 1.1 1.3 1.8 Director compensation program/other 1.7 1.7 1.9 $ 37.3 $ 53.7 $ 38.7 (1) The higher expense in fiscal 2015 and fiscal 2014 is primarily attributable to the workforce reduction efforts (see Note 16) and a change in mix of equity awards granted. (2) The higher expense in fiscal 2015 is primarily attributable to the workforce reduction efforts (see Note 16) and the impact of improved financial performance. |
Stock-Based Compensation | The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes model to record stock-based compensation are as follows: Stock Options Granted in Fiscal Year 2016 2015 2014 Weighted-average fair value (1) $ 12.72 $ 9.41 $ 10.71 Dividend yield 3.3 % 4.5 % 4.4 % Expected volatility of stock 28.0 % 37.3 % 39.6 % Risk-free interest rate 1.9 % 2.1 % 1.9 % Expected option life (in years) 6.5 6.5 6.4 Weighted-average exercise price per share (1) $ 64.85 $ 40.43 $ 42.93 (1) Weighted-averages were adjusted for the impact of the separation of Four Corners. |
Summary Of Stock Option Activity | The following table presents a summary of our stock option activity as of and for the year ended May 29, 2016 : Options (in millions) Weighted-Average Exercise Price Per Share Weighted-Average Aggregate Intrinsic Value Outstanding beginning of period 7.71 $44.18 6.08 $164.6 Awards issued in conversion as a result of the separation of Four Corners 0.97 Options granted 0.44 64.85 Options exercised (2.61) 36.21 Options canceled (0.19) 46.77 Outstanding end of period 6.32 $42.04 6.00 $160.6 Exercisable 4.66 $40.23 5.29 $127.0 |
Summary Of Restricted Stock And RSU Activity | The following table presents a summary of our restricted stock and RSU activity as of and for the fiscal year ended May 29, 2016 : Shares (in millions) Weighted-Average Grant Date Fair Outstanding beginning of period 0.10 $51.19 Shares granted 0.06 62.38 Shares vested (0.03) 47.95 Shares canceled (0.02) 61.97 Outstanding end of period 0.11 $55.46 |
Summary Of Darden Stock Unit Activity | The following table presents a summary of our Darden stock unit activity as of and for the fiscal year ended May 29, 2016 : (All units settled in cash) Units (in millions) Weighted-Average Fair Value Per Unit Outstanding beginning of period 1.37 $65.54 Awards issued in conversion as a result of the separation of Four Corners 0.18 Units granted 0.32 64.75 Units vested (0.34) 63.91 Units canceled (0.10) 47.75 Outstanding end of period 1.43 $67.48 |
Performance Stock Units, Cash Settled | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |
Summary Of Performance Stock Unit Activity | The following table presents a summary of our cash-settled performance stock unit activity as of and for the fiscal year ended May 29, 2016 : (All units settled in cash) Units (in millions) Weighted-Average Per Unit Outstanding beginning of period 0.38 $65.54 Awards issued in conversion as a result of the separation of Four Corners 0.05 Units granted — — Units vested (0.17) 67.17 Units canceled (0.10) 43.35 Performance unit adjustment 0.05 43.84 Outstanding end of period 0.21 $67.48 |
Performance Stock Units, Equity Settled | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |
Summary Of Performance Stock Unit Activity | The following table presents a summary of our equity-settled performance stock unit activity as of and for the fiscal year ended May 29, 2016 : Units (in millions) Weighted-Average Outstanding beginning of period — $— Units granted 0.19 65.23 Units vested — — Units canceled (0.02) 65.42 Outstanding end of period 0.17 $65.21 |
Workforce Reduction (Tables)
Workforce Reduction (Tables) | 12 Months Ended |
May 29, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | In accordance with these actions, we incurred employee termination benefits costs and other costs, which are included in general and administrative expenses in our consolidated statement of earnings as follows: (in millions) Fiscal Year 2016 (3) 2015 2014 Employee termination benefits (1) $ 0.2 $ 37.4 $ 17.2 Other (2) (0.1 ) 0.5 0.9 Total $ 0.1 $ 37.9 $ 18.1 (1) Includes salary and stock-based compensation expense. (2) Includes postemployment medical, outplacement and relocation costs. (3) Reflects subsequent adjustments to the fiscal 2014 and 2015 plans based on updated information. |
Other Current Liabilities | The following table summarizes the accrued employee termination benefits and other costs, which are primarily included in other current liabilities on our consolidated balance sheet as of May 29, 2016 : (in millions) Fiscal Year 2014 Plans Fiscal Year 2015 Plans Payments Adjustments Balance at May 29, 2016 Employee termination benefits (1) $ 13.4 $ 24.2 $ (35.9 ) $ 0.9 $ 2.6 Other 1.1 0.6 (1.3 ) (0.3 ) 0.1 Total $ 14.5 $ 24.8 $ (37.2 ) $ 0.6 $ 2.7 (1) Excludes costs associated with stock options and restricted stock that will be settled in shares upon vesting. |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
May 29, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Unaudited Quarterly Data | The following table summarizes unaudited quarterly data for fiscal 2016 and fiscal 2015 : Fiscal 2016 - Quarters Ended (in millions, except per share data) Aug. 30 Nov. 29 Feb. 28 May 29 Total Sales $ 1,687.0 $ 1,608.8 $ 1,847.5 $ 1,790.2 $ 6,933.5 Earnings before income taxes 111.8 24.4 138.1 175.4 449.7 Earnings from continuing operations 81.0 30.1 108.2 140.4 359.7 Earnings (loss) from discontinued operations, net of tax 5.4 13.1 (2.4 ) (0.8 ) 15.3 Net earnings 86.4 43.2 105.8 139.6 375.0 Basic net earnings per share: Earnings from continuing operations 0.64 0.23 0.85 1.11 2.82 Earnings (loss) from discontinued operations 0.04 0.11 (0.02 ) (0.01 ) 0.12 Net earnings 0.68 0.34 0.83 1.10 2.94 Diluted net earnings per share: Earnings from continuing operations 0.63 0.23 0.84 1.10 2.78 Earnings (loss) from discontinued operations 0.04 0.10 (0.02 ) (0.01 ) 0.12 Net earnings 0.67 0.33 0.82 1.09 2.90 Dividends paid per share 0.55 0.55 0.50 0.50 2.10 Stock price: High 75.60 72.11 64.90 68.62 75.60 Low 63.68 53.38 55.01 61.90 53.38 Fiscal 2015 - Quarters Ended (in millions, except per share data) Aug. 24 Nov. 23 Feb. 22 May 31 (1) Total (2) Sales $ 1,595.8 $ 1,559.0 $ 1,730.9 $ 1,878.3 $ 6,764.0 Earnings (loss) before income taxes (43.7 ) (54.6 ) 147.1 126.5 175.3 Earnings (loss) from continuing operations (19.3 ) (30.8 ) 128.4 118.1 196.4 Earnings (loss) from discontinued operations, net of tax 522.5 (2.0 ) 5.4 (12.8 ) 513.1 Net earnings (loss) 503.2 (32.8 ) 133.8 105.3 709.5 Basic net earnings per share: Earnings (loss) from continuing operations (0.14 ) (0.24 ) 1.03 0.94 1.54 Earnings (loss) from discontinued operations 3.95 (0.02 ) 0.04 (0.11 ) 4.02 Net earnings (loss) 3.81 (0.26 ) 1.07 0.83 5.56 Diluted net earnings per share: Earnings (loss) from continuing operations (0.14 ) (0.24 ) 1.01 0.92 1.51 Earnings (loss) from discontinued operations 3.95 (0.02 ) 0.04 (0.10 ) 3.96 Net earnings (loss) 3.81 (0.26 ) 1.05 0.82 5.47 Dividends paid per share 0.55 0.55 0.55 0.55 2.20 Stock price: High 51.21 56.85 62.65 70.38 70.38 Low 43.56 46.70 54.96 61.31 43.56 (1) The quarter ended May 31, 2015 consisted of 14 weeks, while all other quarters consisted of 13 weeks. (2) The year ended May 31, 2015 consisted of 53 weeks, while the year ended May 29, 2016 consisted of 52 weeks. |
Summary Of Significant Accoun47
Summary Of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |
May 29, 2016USD ($)restaurantexpiration_date | May 31, 2015USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||
Future amortization expense, year one | $ 17,600,000 | |
Future amortization expense, year two | 17,600,000 | |
Future amortization expense, year three | 17,600,000 | |
Future amortization expense, year four | 17,600,000 | |
Future amortization expense, year five | 17,600,000 | |
Impairment of trademarks | $ 0 | |
Expiration dates for gift cards | expiration_date | 0 | |
Gift cards breakage redemption period | 10 years | |
Renewal period of lease arrangements (years) | 15 years | |
Aggregate cumulative translation losses | $ 1,200,000 | $ 1,700,000 |
Foreign currency transaction losses realized | $ 1,800,000 | $ 1,400,000 |
Minimum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Renewal period of lease arrangements (years) | 5 years | |
Maximum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Renewal period of lease arrangements (years) | 20 years | |
Capitalized Software | Minimum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite lived intangible assets, useful life minimum (years) | 3 years | |
Capitalized Software | Maximum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite lived intangible assets, useful life minimum (years) | 10 years | |
Definite-Lived Intangible Assets | Minimum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite lived intangible assets, useful life minimum (years) | 1 year | |
Definite-Lived Intangible Assets | Maximum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Finite lived intangible assets, useful life minimum (years) | 20 years | |
Building | Minimum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property, plant and equipment, minimum (years) | 7 years | |
Building | Maximum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property, plant and equipment, minimum (years) | 40 years | |
Equipment | Minimum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property, plant and equipment, minimum (years) | 2 years | |
Equipment | Maximum | ||
Summary of Significant Accounting Policies [Line Items] | ||
Estimated useful life of property, plant and equipment, minimum (years) | 15 years | |
North America | Entity Operated Units | ||
Summary of Significant Accounting Policies [Line Items] | ||
Number of restaurants | restaurant | 6 | |
North America | Franchised Units | ||
Summary of Significant Accounting Policies [Line Items] | ||
Number of restaurants | restaurant | 18 | |
Latin America, the Middle East and Malaysia | Franchised Units | ||
Summary of Significant Accounting Policies [Line Items] | ||
Number of restaurants | restaurant | 32 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 | May 25, 2014 | May 26, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 274.8 | $ 535.9 | $ 98.3 | $ 88.2 |
Short-term investments | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 166.7 | 455.5 | ||
Credit card receivables | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 81.1 | 77.8 | ||
Depository accounts | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 27 | $ 2.6 |
Summary Of Significant Accoun49
Summary Of Significant Accounting Policies (Depreciation And Amortization Expense From Continuing Operations Related To Land, Buildings And Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization on buildings and equipment | $ 290.2 | $ 319.3 | $ 304.4 |
Losses on replacement of equipment | 5.5 | 5.5 | 4.4 |
Buildings And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization on buildings and equipment | $ 274.4 | $ 305 | $ 296.3 |
Summary Of Significant Accoun50
Summary Of Significant Accounting Policies (Capitalized Software Costs And Related Accumulated Amortization) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Accounting Policies [Abstract] | ||
Capitalized software | $ 169.7 | $ 148 |
Accumulated amortization | (93.1) | (80.4) |
Capitalized software, net of accumulated amortization | $ 76.6 | $ 67.6 |
Summary Of Significant Accoun51
Summary Of Significant Accounting Policies (Costs And Accumulated Amortization Of Acquired Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Accounting Policies [Abstract] | ||
Other definite-lived intangibles | $ 14.2 | $ 15.1 |
Accumulated amortization | (7.3) | (7.3) |
Other definite-lived intangible assets, net of accumulated amortization | 6.9 | 7.8 |
Below-market leases | 29.2 | 29.2 |
Accumulated amortization | (13.3) | (11.5) |
Below-market leases, net of accumulated amortization | 15.9 | 17.7 |
Above-market leases | (21.4) | (21.4) |
Accumulated amortization | 8.3 | 6.4 |
Above-market leases, net of accumulated amortization | $ (13.1) | $ (15) |
Summary Of Significant Accoun52
Summary Of Significant Accounting Policies (Amortization Expense Associated With Capitalized Software And Other Definite Lived Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Accounting Policies [Abstract] | |||
Amortization expense - capitalized software | $ 14.9 | $ 13.3 | $ 7 |
Amortization expense - other definite-lived intangibles | $ 0.9 | $ 1 | $ 1.1 |
Summary Of Significant Accoun53
Summary Of Significant Accounting Policies (Amortization Expense Related To Acquired Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Accounting Policies [Abstract] | |||
Restaurant expense - below-market leases | $ 1.8 | $ 1.8 | $ 1.8 |
Restaurant expense - above-market leases | $ (1.4) | $ (1.4) | $ (1.4) |
Summary Of Significant Accoun54
Summary Of Significant Accounting Policies (Goodwill And Trademark Balances) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | $ 872.3 | $ 872.4 |
Trademarks | 574.6 | 574.6 |
The Capital Grille | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 401.6 | 401.7 |
Trademarks | 147 | 147 |
LongHorn Steakhouse | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 49.3 | 49.3 |
Trademarks | 307.8 | 307.8 |
Olive Garden | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 30.2 | 30.2 |
Eddie V's | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 22 | 22 |
Trademarks | 10.5 | 10.5 |
Yard House | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 369.2 | 369.2 |
Trademarks | $ 109.3 | $ 109.3 |
Summary Of Significant Accoun55
Summary Of Significant Accounting Policies (Basic And Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016 | Feb. 28, 2016 | Nov. 29, 2015 | Aug. 30, 2015 | May 31, 2015 | Feb. 22, 2015 | Nov. 23, 2014 | Aug. 24, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Accounting Policies [Abstract] | |||||||||||
Earnings from continuing operations | $ 140.4 | $ 108.2 | $ 30.1 | $ 81 | $ 118.1 | $ 128.4 | $ (30.8) | $ (19.3) | $ 359.7 | $ 196.4 | $ 183.2 |
Earnings from discontinued operations | (0.8) | (2.4) | 13.1 | 5.4 | (12.8) | 5.4 | (2) | 522.5 | 15.3 | 513.1 | 103 |
Net earnings | $ 139.6 | $ 105.8 | $ 43.2 | $ 86.4 | $ 105.3 | $ 133.8 | $ (32.8) | $ 503.2 | $ 375 | $ 709.5 | $ 286.2 |
Average common shares outstanding - Basic (shares) | 127.4 | 127.7 | 131 | ||||||||
Effect of dilutive stock-based compensation (shares) | 1.9 | 2 | 2.2 | ||||||||
Average common shares outstanding - Diluted (shares) | 129.3 | 129.7 | 133.2 | ||||||||
Basic net earnings per share: | |||||||||||
Earnings from continuing operations, basic (in dollars per share) | $ 1.11 | $ 0.85 | $ 0.23 | $ 0.64 | $ 0.94 | $ 1.03 | $ (0.24) | $ (0.14) | $ 2.82 | $ 1.54 | $ 1.40 |
Earnings from discontinued operations, basic (in dollars per share) | (0.01) | (0.02) | 0.11 | 0.04 | (0.11) | 0.04 | (0.02) | 3.95 | 0.12 | 4.02 | 0.78 |
Net (loss) earnings, basic (in dollars per share) | 1.10 | 0.83 | 0.34 | 0.68 | 0.83 | 1.07 | (0.26) | 3.81 | 2.94 | 5.56 | 2.18 |
Diluted net earnings per share: | |||||||||||
Earnings from continuing operations, diluted (in dollars per share) | 1.10 | 0.84 | 0.23 | 0.63 | 0.92 | 1.01 | (0.24) | (0.14) | 2.78 | 1.51 | 1.38 |
Earnings from discontinued operations, diluted (in dollars per share) | (0.01) | (0.02) | 0.10 | 0.04 | (0.10) | 0.04 | (0.02) | 3.95 | 0.12 | 3.96 | 0.77 |
Net (loss) earnings, diluted (in dollars per share) | $ 1.09 | $ 0.82 | $ 0.33 | $ 0.67 | $ 0.82 | $ 1.05 | $ (0.26) | $ 3.81 | $ 2.90 | $ 5.47 | $ 2.15 |
Summary Of Significant Accoun56
Summary Of Significant Accounting Policies (Restricted Stock And Options To Purchase Shares Of Common Stock Excluded From Calculation Of Diluted Earnings Per Share) (Details) - shares shares in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Accounting Policies [Abstract] | |||
Anti-dilutive restricted stock and options (shares) | 0.3 | 0.1 | 4.2 |
Real Estate Transactions Narrat
Real Estate Transactions Narrative (Details) $ in Millions | Nov. 09, 2015USD ($)propertyshares | May 29, 2016USD ($)restaurantproperty | May 31, 2015property | May 29, 2016USD ($)restaurantproperty | May 31, 2015USD ($) | May 25, 2014USD ($) | Nov. 29, 2015USD ($) | Jun. 23, 2015company |
Real Estate Properties [Line Items] | ||||||||
Number of real estate properties | property | 418 | 424 | 424 | |||||
Sale leaseback transaction, number of properties | property | 64 | |||||||
Sale leaseback transaction, number of transactions completed | property | 14 | 50 | ||||||
Proceeds from financing lease obligation | $ 131 | $ 238 | ||||||
Sale leaseback transaction, deferred gain, net | 49 | $ 49 | ||||||
Sale leaseback transaction, current period gain recognized | $ 6.3 | |||||||
Number of companies | company | 2 | |||||||
Stock issued during period, shares, stock splits | shares | 1 | |||||||
Special cash distribution from Four Corners Property Trust | 315 | $ 0 | $ 0 | |||||
Separation of Four Corners Property Trust | $ 435.4 | $ 435.4 | ||||||
Spinoff transaction, net book value | 834.8 | |||||||
Sale leaseback transaction, initial lease term | 15 years | |||||||
Renewal period of lease arrangements (years) | 15 years | |||||||
Sale leaseback transaction, imputed interest rate | 1.50% | |||||||
Extinguishment of debt, amount | $ 1,030 | |||||||
Texas | LongHorn Steakhouse | ||||||||
Real Estate Properties [Line Items] | ||||||||
Number of restaurants | restaurant | 6 | 6 | ||||||
Four Corners Property Trust Inc. | Spinoff | ||||||||
Real Estate Properties [Line Items] | ||||||||
Deferred tax liabilities, net | $ (84.4) |
Dispositions (Narrative) (Detai
Dispositions (Narrative) (Details) $ in Millions | Jul. 28, 2014restaurant | May 29, 2016USD ($) | May 31, 2015USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 20.3 | $ 32.9 | |
Red Lobster | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations | $ 854.8 | ||
Discontinued Operations, Disposed of by Sale | Red Lobster | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of restaurants sold | restaurant | 705 | ||
Remaining number of properties subject to contractual requirements | 2 years |
Dispositions (Income Statement
Dispositions (Income Statement Disclosure) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016 | Feb. 28, 2016 | Nov. 29, 2015 | Aug. 30, 2015 | May 31, 2015 | Feb. 22, 2015 | Nov. 23, 2014 | Aug. 24, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Income tax expense | $ 3.4 | $ 344.8 | $ 32.3 | ||||||||
Earnings from discontinued operations, net of tax | $ (0.8) | $ (2.4) | $ 13.1 | $ 5.4 | $ (12.8) | $ 5.4 | $ (2) | $ 522.5 | 15.3 | 513.1 | 103 |
Discontinued Operations, Disposed of by Sale | Red Lobster | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales | 0 | 400.4 | 2,472.1 | ||||||||
Restaurant and marketing expenses | 1.8 | 353 | 2,134.1 | ||||||||
Depreciation and amortization | 0 | 0.2 | 124.6 | ||||||||
Other income and expenses | (20.5) | (810.7) | 78.1 | ||||||||
Earnings before income taxes | 18.7 | 857.9 | 135.3 | ||||||||
Income tax expense | 3.4 | 344.8 | 32.3 | ||||||||
Earnings from discontinued operations, net of tax | $ 15.3 | $ 513.1 | $ 103 |
Impairments and Disposal of A60
Impairments and Disposal of Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Asset Impairment Charges [Abstract] | |||
Restaurant impairments | $ 9.2 | $ 49.4 | $ 11.5 |
Disposal gains | (5.9) | (4.2) | (1.9) |
Other | 2.5 | 16.9 | 6.8 |
Impairments and disposal of assets, net | $ 5.8 | $ 62.1 | $ 16.4 |
Land, Buildings And Equipment61
Land, Buildings And Equipment, Net (Components Of Land, Buildings And Equipment, Net) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Property, Plant and Equipment, Net [Abstract] | ||
Land | $ 133.1 | $ 633.5 |
Buildings | 2,297.1 | 3,338.9 |
Equipment | 1,318.5 | 1,439.1 |
Assets under capital leases | 71.9 | 72 |
Construction in progress | 40 | 36.9 |
Total land, buildings and equipment | 3,860.6 | 5,520.4 |
Less accumulated depreciation and amortization | (1,788.3) | (2,277.7) |
Less amortization associated with assets under capital leases | (30.7) | (26.9) |
Land, buildings and equipment, net | $ 2,041.6 | $ 3,215.8 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016USD ($) | Feb. 28, 2016USD ($) | Nov. 29, 2015USD ($) | Aug. 30, 2015USD ($) | May 31, 2015USD ($) | Feb. 22, 2015USD ($) | Nov. 23, 2014USD ($) | Aug. 24, 2014USD ($) | May 29, 2016USD ($)segment | May 31, 2015USD ($) | May 25, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 4 | ||||||||||
Sales | $ 1,790.2 | $ 1,847.5 | $ 1,608.8 | $ 1,687 | $ 1,878.3 | $ 1,730.9 | $ 1,559 | $ 1,595.8 | $ 6,933.5 | $ 6,764 | $ 6,285.6 |
Restaurant and marketing expenses | 5,630.4 | 5,584.8 | 5,242.8 | ||||||||
Segment profit | 1,303.1 | 1,179.2 | 1,042.8 | ||||||||
Depreciation and amortization | 290.2 | 319.3 | 304.4 | ||||||||
Impairments and disposal of assets, net | 5.8 | 62.1 | 16.4 | ||||||||
Segment assets | 4,582.6 | 5,994.7 | 4,582.6 | 5,994.7 | |||||||
Purchases of land, buildings and equipment | 228.3 | 296.5 | 414.8 | ||||||||
Operating Segments | Olive Garden | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 3,838.6 | 3,789.6 | 3,643.1 | ||||||||
Restaurant and marketing expenses | 3,079.4 | 3,089.1 | 2,995.1 | ||||||||
Segment profit | 759.2 | 700.5 | 648 | ||||||||
Depreciation and amortization | 124.1 | 149.8 | 149.6 | ||||||||
Impairments and disposal of assets, net | (1.4) | 28.2 | 3.3 | ||||||||
Segment assets | 939.2 | 1,625.1 | 939.2 | 1,625.1 | |||||||
Purchases of land, buildings and equipment | 95.6 | 118.9 | 131.9 | ||||||||
Operating Segments | LongHorn Steakhouse | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,587.7 | 1,544.7 | 1,383.9 | ||||||||
Restaurant and marketing expenses | 1,312.4 | 1,304.8 | 1,179.6 | ||||||||
Segment profit | 275.3 | 239.9 | 204.3 | ||||||||
Depreciation and amortization | 67.9 | 71.6 | 66.7 | ||||||||
Impairments and disposal of assets, net | (1.5) | 0.4 | 0.8 | ||||||||
Segment assets | 969.2 | 1,261.1 | 969.2 | 1,261.1 | |||||||
Purchases of land, buildings and equipment | 46.9 | 67.4 | 114.4 | ||||||||
Operating Segments | Fine Dining | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 514.1 | 500.1 | 441.6 | ||||||||
Restaurant and marketing expenses | 413.6 | 405.2 | 360.2 | ||||||||
Segment profit | 100.5 | 94.9 | 81.4 | ||||||||
Depreciation and amortization | 27.1 | 26.4 | 24.3 | ||||||||
Impairments and disposal of assets, net | 0.7 | 0 | 4.8 | ||||||||
Segment assets | 857 | 865.6 | 857 | 865.6 | |||||||
Purchases of land, buildings and equipment | 21.4 | 22.9 | 42.3 | ||||||||
Operating Segments | Other Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 993.1 | 929.6 | 817 | ||||||||
Restaurant and marketing expenses | 825 | 785.7 | 707.9 | ||||||||
Segment profit | 168.1 | 143.9 | 109.1 | ||||||||
Depreciation and amortization | 50.5 | 47.3 | 42.7 | ||||||||
Impairments and disposal of assets, net | 6 | 21 | 3.7 | ||||||||
Segment assets | 987.6 | 1,054.6 | 987.6 | 1,054.6 | |||||||
Purchases of land, buildings and equipment | 60.5 | 83.4 | 123.1 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Restaurant and marketing expenses | 0 | 0 | 0 | ||||||||
Segment profit | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 20.6 | 24.2 | 21.1 | ||||||||
Impairments and disposal of assets, net | 2 | 12.5 | 3.8 | ||||||||
Segment assets | $ 829.6 | $ 1,188.3 | 829.6 | 1,188.3 | |||||||
Purchases of land, buildings and equipment | $ 3.9 | $ 3.9 | $ 3.1 |
Segment Information -Reconcilia
Segment Information -Reconciliation of Segment Profit to Earnings from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016 | Feb. 28, 2016 | Nov. 29, 2015 | Aug. 30, 2015 | May 31, 2015 | Feb. 22, 2015 | Nov. 23, 2014 | Aug. 24, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Segment profit | $ 1,303.1 | $ 1,179.2 | $ 1,042.8 | ||||||||
Less general and administrative expenses | (384.9) | (430.2) | (413.1) | ||||||||
Less depreciation and amortization | (290.2) | (319.3) | (304.4) | ||||||||
Less impairments and disposal of assets, net | (5.8) | (62.1) | (16.4) | ||||||||
Less interest, net | (172.5) | (192.3) | (134.3) | ||||||||
Earnings before income taxes | $ 175.4 | $ 138.1 | $ 24.4 | $ 111.8 | $ 126.5 | $ 147.1 | $ (54.6) | $ (43.7) | $ 449.7 | $ 175.3 | $ 174.6 |
Debt (Components Of Long-Term D
Debt (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 29, 2016 | May 31, 2015 | |
Debt Instruments [Line Items] | ||
Total long-term debt | $ 450 | $ 1,478 |
Fair value hedge | 0 | 3.6 |
Less unamortized discount and issuance costs | (10) | (14.3) |
Total long-term debt less unamortized discount and issuance costs | 440 | 1,467.3 |
Less current portion | 0 | (15) |
Long-term debt, excluding current portion | 440 | 1,452.3 |
Variable-rate term loan (1.68% at May 31, 2015) due August 2017 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 0 | 285 |
Debt instrument, interest rate, stated percentage (percentage) | 1.68% | |
Maturity date of debt | Aug. 31, 2017 | |
6.200% senior notes due October 2017 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 0 | 500 |
Debt instrument, interest rate, stated percentage (percentage) | 6.20% | |
Maturity date of debt | Oct. 31, 2017 | |
4.500% senior notes due October 2021 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 0 | 121.9 |
Debt instrument, interest rate, stated percentage (percentage) | 4.50% | |
Maturity date of debt | Oct. 31, 2021 | |
3.350% senior notes due November 2022 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 0 | 111.1 |
Debt instrument, interest rate, stated percentage (percentage) | 3.35% | |
Maturity date of debt | Nov. 30, 2022 | |
4.520% senior notes due August 2024 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 0 | 10 |
Debt instrument, interest rate, stated percentage (percentage) | 4.52% | |
Maturity date of debt | Aug. 31, 2024 | |
6.000% senior notes due August 2035 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 150 | 150 |
Debt instrument, interest rate, stated percentage (percentage) | 6.00% | |
Maturity date of debt | Aug. 31, 2035 | |
6.800% senior notes due October 2037 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 300 | $ 300 |
Debt instrument, interest rate, stated percentage (percentage) | 6.80% | |
Maturity date of debt | Oct. 31, 2037 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Debt Instruments [Line Items] | ||||
Extinguishment of debt, amount | $ 1,030,000,000 | |||
Loss on extinguishment of debt | 106,800,000 | $ 91,300,000 | $ 0 | |
Gain (loss) on extinguishment of debt, before write off of deferred debt issuance cost | 68,700,000 | |||
Non-cash charges on extinguishment of debt | $ 38,100,000 | |||
Senior Notes | ||||
Debt Instruments [Line Items] | ||||
Maximum range of interest rate adjustment on funds borrowed (percentage) | 2.00% | |||
6.200% senior notes due October 2017 | ||||
Debt Instruments [Line Items] | ||||
Interest rate of debt (percentage) | 6.20% | |||
Maturity date of debt | Oct. 31, 2017 | |||
6.800% senior notes due October 2037 | Senior Notes | ||||
Debt Instruments [Line Items] | ||||
Interest rate of debt (percentage) | 6.80% | |||
Face amount of debt | $ 300,000,000 | |||
Maturity date of debt | Oct. 1, 2037 | |||
Revolving Credit Agreement | Revolving Credit Facility | ||||
Debt Instruments [Line Items] | ||||
Maximum borrowing available under the credit facility | $ 750,000,000 | |||
Total debt to total capitalization ratio | 0.75 | |||
Base interest rate percentage of revolving credit facility in addition to federal funds rate (percentage) | 0.50% | |||
6.200% senior notes due October 2017 | Senior Notes | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, interest rate increase (percent) | 0.25% | |||
Libor | Revolving Credit Agreement | Revolving Credit Facility | ||||
Debt Instruments [Line Items] | ||||
Applicable interest rate assuming a BBB equivalent credit rating level (percentage) | 1.10% | |||
Base Rate Loans | Revolving Credit Agreement | Revolving Credit Facility | ||||
Debt Instruments [Line Items] | ||||
Applicable interest rate assuming a BBB equivalent credit rating level (percentage) | 0.10% | |||
Revolving Credit Facility | Revolving Credit Agreement | ||||
Debt Instruments [Line Items] | ||||
Outstanding balance of credit agreement | $ 0 | |||
Revolving Credit Facility | Eurodollar | Revolving Credit Agreement | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.00% | |||
Long-term Debt | Variable-rate term loan due August 2017 [Member] | ||||
Debt Instruments [Line Items] | ||||
Extinguishment of debt, amount | $ 285,000,000 | |||
Senior Notes | 6.200 Senior Notes Due Twenty Seventeen | ||||
Debt Instruments [Line Items] | ||||
Extinguishment of debt, amount | $ 500,000,000 | |||
Interest rate of debt (percentage) | 6.20% | |||
Senior Notes | 4.500% senior notes due October 2021 | ||||
Debt Instruments [Line Items] | ||||
Extinguishment of debt, amount | $ 121,900,000 | |||
Interest rate of debt (percentage) | 4.50% | |||
Senior Notes | 3.350% senior notes due November 2022 | ||||
Debt Instruments [Line Items] | ||||
Extinguishment of debt, amount | $ 111,100,000 | |||
Interest rate of debt (percentage) | 3.35% | |||
Senior Notes | 4.520% senior notes due August 2024 | ||||
Debt Instruments [Line Items] | ||||
Extinguishment of debt, amount | $ 10,000,000 | |||
Interest rate of debt (percentage) | 4.52% |
Debt (Aggregate Maturities Of L
Debt (Aggregate Maturities Of Long-Term Debt) (Details) $ in Millions | May 29, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | $ 450 |
Derivative Instruments And He67
Derivative Instruments And Hedging Activities (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Derivative [Line Items] | |||
Gain on interest-rate swap | $ 4.1 | ||
Loss on extinguishment of debt | 106.8 | $ 91.3 | $ 0 |
Derivative instruments, gain (loss) recognized in income, net | $ 1.7 | $ 3.6 | $ 2.9 |
Minimum vesting period, in years (years) | 4 years | ||
Amount of gain (loss) reclassified from AOCI to Earnings (effective portion) | $ 0.3 | ||
Darden stock units | Minimum | |||
Derivative [Line Items] | |||
Minimum vesting period, in years (years) | 4 years | ||
Common stock at forward contract rate (dollars per share) | $ 40.69 | ||
Darden stock units | Maximum | |||
Derivative [Line Items] | |||
Minimum vesting period, in years (years) | 5 years | ||
Common stock at forward contract rate (dollars per share) | $ 60.6 | ||
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 (shares) | 0.1 | ||
Common stock at forward contract rate (dollars per share) | $ 41.03 | ||
Forward Contracts | Darden stock units | |||
Derivative [Line Items] | |||
Forward contract indexed to issuer's equity, indexed shares (shares) | 0.9 | ||
Investment options, expiration date | Sep. 1, 2020 | ||
Forward Contracts | Employee-Directed Investments In Darden Stock Within The Non-Qualified Deferred Compensation Plan | |||
Derivative [Line Items] | |||
Investment maturity date, range start | May 29, 2016 | ||
Investment maturity date, range end | May 26, 2019 |
Derivative Instruments And He68
Derivative Instruments And Hedging Activities (Notional and Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 3.8 | $ 5.3 |
Derivative Liabilities | 0 | 0 |
Derivative contracts designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.2 | 4 |
Derivative Liabilities | 0 | 0 |
Derivative contracts not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 2.6 | 1.3 |
Derivative Liabilities | 0 | 0 |
Equity forwards | Derivative contracts designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 14.9 | 11.4 |
Derivative Assets | 1.2 | 0.4 |
Derivative Liabilities | 0 | 0 |
Equity forwards | Derivative contracts not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 28.2 | 51.7 |
Derivative Assets | 2.6 | 1.3 |
Derivative Liabilities | 0 | 0 |
Interest rate related | Derivative contracts designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 0 | 200 |
Derivative Assets | 0 | 3.6 |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Instruments And He69
Derivative Instruments And Hedging Activities (Effects Of Derivative Instruments In Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ 2 | $ 2.1 | $ (3.5) |
Amount of Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (35.3) | (46.7) | (11.1) |
Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion) | 0.9 | 1.1 | 1.4 |
Equity | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 2 | 2.1 | (3.5) |
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) | 2.1 | (1) | (0.8) |
Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion) | 0.9 | 1.1 | 1.4 |
Interest rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 0 | 0 | 0 |
Interest rate | Interest, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion) | (37.4) | (45.7) | (10.3) |
Amount of Gain (Loss) Recognized in Earnings (Ineffective Portion) | $ 0 | $ 0 | $ 0 |
Derivative Instruments And He70
Derivative Instruments And Hedging Activities (Effects Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | $ 11.4 | $ 13.2 | $ (1.8) |
Equity forwards | Restaurant labor expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | 3.9 | 4 | (0.5) |
Equity forwards | General and administrative expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | $ 7.5 | $ 9.2 | $ (1.3) |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Values Of Financial Instruments Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sale Securities, Cost | $ 6.9 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 3.9 | $ 5 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 6.8 | 9.1 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 0 | 0 |
Equity forwards | Fair Value, Measurements, Recurring | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 0 | 0 |
Equity forwards | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 3.8 | 1.7 |
Equity forwards | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 0 | 0 |
Interest rate swaps | Fair Value, Measurements, Recurring | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 0 | |
Interest rate swaps | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 3.6 | |
Interest rate swaps | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 0 | |
Maturity, Less Than One Year | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Available-for-sale Securities, Cost | 2.5 | |
Corporate bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 0 | 0 |
Corporate bonds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 2 | 2.2 |
Corporate bonds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 0 | 0 |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 3.9 | 5 |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 0 | 0 |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 0 | 0 |
Mortgage-backed securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 0 | 0 |
Mortgage-backed securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 1 | 1.6 |
Mortgage-backed securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 0 | 0 |
Maturity, One to Three Years | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 4.4 | |
Fair Value of Assets (Liabilities) | Fair Value, Measurements, Recurring | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 10.7 | 14.1 |
Fair Value of Assets (Liabilities) | Equity forwards | Fair Value, Measurements, Recurring | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 3.8 | 1.7 |
Fair Value of Assets (Liabilities) | Interest rate swaps | Fair Value, Measurements, Recurring | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives: | 3.6 | |
Fair Value of Assets (Liabilities) | Corporate bonds | Fair Value, Measurements, Recurring | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 2 | 2.2 |
Fair Value of Assets (Liabilities) | U.S. Treasury securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | 3.9 | 5 |
Fair Value of Assets (Liabilities) | Mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Fixed-income securities: | $ 1 | $ 1.6 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value And Fair Value Of Long-Term Debt) (Details) $ in Millions | 12 Months Ended | |
May 29, 2016USD ($)restaurant | May 31, 2015USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | $ 440 | $ 1,467.3 |
Number of underperforming restaurants | restaurant | 2 | |
Impairment of long-lived assets held-for-use | $ 5.4 | 15.1 |
Impairment of long-lived assets to be disposed of | 0.6 | 4.1 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | 440 | 1,470 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | 499.5 | 1,570 |
Fair Value, Measurements, Nonrecurring | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-financial assets measured at fair value | 5.4 | 70.5 |
Assets held-for-sale, long lived, fair value disclosure | 17.5 | 21.1 |
Fair Value, Measurements, Nonrecurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-financial assets measured at fair value | 55.4 | |
Assets held-for-sale, long lived, fair value disclosure | $ 16.9 | $ 17 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | Jun. 23, 2015 | May 29, 2016 | Dec. 16, 2015 |
Stockholders' Equity Note [Abstract] | |||
Share repurchase program, authorized amount | $ 500,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 315,600,000 | ||
Stock repurchase program, cumulative shares repurchased | 185,000,000 | ||
Treasury shares retirement, cumulative shares | 172,300,000 | ||
Stockholders' equity, maximum ownership percentage of common stock (percent) | 9.80% | ||
Right to purchase series A participated cumulative preferred stock (shares) | 0.001 | ||
Participating cumulative preferred stock at purchase price (dollars per share) | $ 156.26 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 29, 2016 | May 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 2,333.5 | $ 2,156.9 |
Gain (loss) | (21) | 0.9 |
Reclassification realized in net earnings | 20.6 | 40.6 |
Ending Balance | 1,952 | 2,333.5 |
Foreign Currency Translation Adjustment | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (1.7) | (4.7) |
Gain (loss) | 0.5 | (4.3) |
Reclassification realized in net earnings | 0 | 7.3 |
Ending Balance | (1.2) | (1.7) |
Unrealized Gains (Losses) on Marketable Securities | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 0.1 | 0.1 |
Gain (loss) | 0 | 0 |
Reclassification realized in net earnings | 0 | 0 |
Ending Balance | 0.1 | 0.1 |
Unrealized Gains (Losses) on Derivatives | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (19.1) | (50.4) |
Gain (loss) | 2 | 2.1 |
Reclassification realized in net earnings | 21 | 29.2 |
Ending Balance | 3.9 | (19.1) |
Benefit Plan Funding Position | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (65.9) | (73.1) |
Gain (loss) | (23.5) | 3.1 |
Reclassification realized in net earnings | (0.4) | 4.1 |
Ending Balance | (89.8) | (65.9) |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (86.6) | (128.1) |
Ending Balance | $ (87) | $ (86.6) |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Reclassification Adjustments out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016 | Feb. 28, 2016 | Nov. 29, 2015 | Aug. 30, 2015 | May 31, 2015 | Feb. 22, 2015 | Nov. 23, 2014 | Aug. 24, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Less interest, net | $ (172.5) | $ (192.3) | $ (134.3) | ||||||||
Earnings before income taxes | $ 175.4 | $ 138.1 | $ 24.4 | $ 111.8 | $ 126.5 | $ 147.1 | $ (54.6) | $ (43.7) | 449.7 | 175.3 | 174.6 |
Tax benefit | (90) | 21.1 | 8.6 | ||||||||
Net earnings | $ 139.6 | $ 105.8 | $ 43.2 | $ 86.4 | $ 105.3 | $ 133.8 | $ (32.8) | $ 503.2 | 375 | 709.5 | $ 286.2 |
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes | (35.3) | (46.7) | |||||||||
Tax benefit | 14.3 | 17.5 | |||||||||
Net earnings | (21) | (29.2) | |||||||||
Actuarial losses | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from accumulated other comprehensive income, current period, before tax | (2.8) | (2.6) | |||||||||
Settlement loss | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from accumulated other comprehensive income, current period, before tax | 0 | (6.1) | |||||||||
Benefit plan funding position | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes | 0.6 | (6.9) | |||||||||
Tax benefit | (0.2) | 2.8 | |||||||||
Net earnings | 0.4 | (4.1) | |||||||||
Equity | Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
General and administrative expenses | 2.1 | (1) | |||||||||
Interest rate | Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Less interest, net | (37.4) | (45.7) | |||||||||
Total - pension/postretirement plans | Benefit plan funding position | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amount reclassified from AOCI into Net Earnings, benefit plan funding position | (2.8) | (8.7) | |||||||||
Recognized net actuarial gain - other plans | Benefit plan funding position | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amount reclassified from AOCI into Net Earnings, benefit plan funding position | $ 3.4 | $ 1.8 |
Leases (Analysis Of Rent Expens
Leases (Analysis Of Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Operating Leased Assets [Line Items] | |||
Total rent expense | $ 265.6 | $ 194.9 | $ 185.4 |
Rent expense, discontinued operations | 0 | 6.2 | 36.2 |
Rent expense, minimum, discontinued operations | 0 | 5.8 | 33 |
Restaurant minimum rent | |||
Operating Leased Assets [Line Items] | |||
Total rent expense | 233.6 | 167 | 146.4 |
Restaurant rent averaging expense | |||
Operating Leased Assets [Line Items] | |||
Total rent expense | 15.9 | 16.7 | 26.9 |
Restaurant percentage rent | |||
Operating Leased Assets [Line Items] | |||
Total rent expense | 8 | 7.7 | 6.6 |
Other | |||
Operating Leased Assets [Line Items] | |||
Total rent expense | $ 8.1 | $ 3.5 | $ 5.5 |
Leases (Annual Future Lease Com
Leases (Annual Future Lease Commitments) (Details) $ in Millions | 12 Months Ended |
May 29, 2016USD ($) | |
Leases [Abstract] | |
Capital lease, 2017 | $ 5.9 |
Capital lease, 2018 | 6 |
Capital lease, 2019 | 6 |
Capital lease, 2020 | 6.1 |
Capital lease, 2021 | 6 |
Capital lease, Thereafter | 49 |
Capital lease, Total future lease commitments | 79 |
Capital lease, Less imputed interest (at 6.5%) | (27) |
Capital lease, Present value of future lease commitments | 52 |
Capital lease, Less current maturities | (2.7) |
Obligations under capital leases, net of current installments | 49.3 |
Financing lease, 2017 | 7.1 |
Financing lease, 2018 | 7.2 |
Financing lease, 2019 | 7.4 |
Financing lease, 2020 | 7.5 |
Financing lease, 2021 | 7.6 |
Financing lease, Thereafter | 115.8 |
Financing lease, Total future lease commitments | 152.6 |
Financing lease, Less imputed interest (various) | (76.6) |
Financing lease, Present value of future lease commitments | 76 |
Financing lease, Less current maturities | (1.3) |
Obligations under financing leases, net of current maturities | 74.7 |
Operating lease, 2017 | 297.6 |
Operating lease, 2018 | 287.6 |
Operating lease, 2019 | 271.5 |
Operating lease, 2020 | 255.2 |
Operating lease, 2021 | 232.8 |
Operating lease, Thereafter | 1,484.6 |
Operating lease, Total future lease commitments | $ 2,829.3 |
Capital lease, imputed interest (percentage) | 6.50% |
Additional Financial Informat78
Additional Financial Information (Receivables, net and Other Current Liabilities) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (0.5) | $ (0.9) |
Receivables, net | 64 | 78 |
Current liabilities: | ||
Non-qualified deferred compensation plan | 194 | 209.6 |
Sales and other taxes | 58.7 | 63.9 |
Insurance-related | 36.3 | 37.4 |
Employee benefits | 35.8 | 34.3 |
Contingent proceeds - Red Lobster disposition | 0 | 31.5 |
Accrued interest | 5.1 | 11.4 |
Miscellaneous | 70.7 | 61 |
Other current liabilities | 400.6 | 449.1 |
Retail outlet gift card sales | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 43.9 | 47.1 |
Landlord allowances due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | 3.7 | 12.9 |
Miscellaneous | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross | $ 16.9 | $ 18.9 |
Additional Financial Informat79
Additional Financial Information (Components of Interest) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Debt Instruments [Line Items] | |||
Interest expense | $ 165.4 | $ 186.2 | $ 134 |
Imputed interest on capital and financing leases | 8.9 | 8 | 3.5 |
Capitalized interest | 0.7 | 1.3 | 2.6 |
Interest income | 1.1 | 0.6 | 0.6 |
Interest, net | 172.5 | 192.3 | $ 134.3 |
Long-term Debt | |||
Debt Instruments [Line Items] | |||
Interest expense | $ 106.8 | $ 91.3 |
Additional Financial Informat80
Additional Financial Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Debt Instruments [Line Items] | |||
Interest paid, net of amounts capitalized | $ 140.8 | $ 142.8 | $ 117.5 |
Income taxes paid, net of refunds | 128 | 290.7 | 90 |
Increase in land, buildings and equipment through accrued purchases | 14.9 | 11.1 | 24.4 |
Net book value of assets distributed in Four Corners separation, net of deferred tax liabilities | 750.4 | 0 | $ 0 |
Long-term Debt | |||
Debt Instruments [Line Items] | |||
Interest paid, net of amounts capitalized | $ 68.7 | $ 44 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Income Tax Disclosure [Line Items] | ||
Prepaid income taxes | $ 46.1 | $ 18.9 |
Gross unrecognized tax benefits | 14.3 | $ 13.7 |
Tax position, change is reasonably possible in the next twelve month | 1.2 | |
Unrecognized tax benefits, accrued interest | 0.7 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Prepaid income taxes | 17 | |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Prepaid income taxes | $ 29.1 |
Income Taxes (Allocation Of Tot
Income Taxes (Allocation Of Total Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Income Tax Disclosure [Abstract] | |||
Earnings from continuing operations | $ 90 | $ (21.1) | $ (8.6) |
Earnings from discontinued operations | 3.4 | 344.8 | 32.3 |
Total consolidated income tax expense | $ 93.4 | $ 323.7 | $ 23.7 |
Income Taxes (Components Of Ear
Income Taxes (Components Of Earnings Before Income Tax And Provision For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016 | Feb. 28, 2016 | Nov. 29, 2015 | Aug. 30, 2015 | May 31, 2015 | Feb. 22, 2015 | Nov. 23, 2014 | Aug. 24, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Earnings from continuing operations before income taxes: | |||||||||||
Earnings from continuing operations before income taxes, U.S. | $ 450.6 | $ 179.9 | $ 189 | ||||||||
Earnings from continuing operations before income taxes, Foreign | (0.9) | (4.6) | (14.4) | ||||||||
Earnings before income taxes | $ 175.4 | $ 138.1 | $ 24.4 | $ 111.8 | $ 126.5 | $ 147.1 | $ (54.6) | $ (43.7) | 449.7 | 175.3 | 174.6 |
Income taxes, Current | |||||||||||
Current, Federal | 89.1 | (12.7) | 39.5 | ||||||||
Current, State and local | 2.7 | (8) | 5.4 | ||||||||
Current, Foreign | 1.9 | 6.9 | 3 | ||||||||
Total current | 93.7 | (13.8) | 47.9 | ||||||||
Income taxes, Deferred | |||||||||||
Total deferred | (10.8) | 42 | (44.9) | ||||||||
Income tax expense (benefit) | 90 | (21.1) | (8.6) | ||||||||
U.S. | |||||||||||
Income taxes, Deferred | |||||||||||
Deferred, Federal | (2.4) | 0 | (43.7) | ||||||||
Deferred, State and local | (1.3) | (7.3) | (12.8) | ||||||||
Total deferred | $ (3.7) | $ (7.3) | $ (56.5) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefits | 1.20% | (6.60%) | (2.70%) |
Benefit of federal income tax credits | (12.50%) | (34.00%) | (30.30%) |
Other, net | (3.70%) | (6.40%) | (6.90%) |
Effective income tax rate | 20.00% | (12.00%) | (4.90%) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) $ in Millions | 12 Months Ended |
May 29, 2016USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 13.7 |
Additions related to current-year tax positions | 3.9 |
Reductions related to prior-year tax positions | (0.4) |
Reductions due to settlements with taxing authorities | (1) |
Reductions to tax positions due to statute expiration | (1.9) |
Ending balance | $ 14.3 |
Income Taxes (Interest Expense
Income Taxes (Interest Expense On Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Income Tax Disclosure [Abstract] | |||
Interest expense on unrecognized tax benefits | $ 0.5 | $ 1.1 | $ 0.4 |
Income Taxes (Tax Effects On De
Income Taxes (Tax Effects On Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Accrued liabilities | $ 109.4 | $ 104.9 |
Compensation and employee benefits | 176 | 186.6 |
Deferred rent and interest income | 97.8 | 88.9 |
Net operating loss, credit and charitable contribution carryforwards | 47.1 | 50.1 |
Other | 5.9 | 6.5 |
Gross deferred tax assets | 436.2 | 437 |
Valuation allowance | (17) | (13.5) |
Deferred tax assets, net of valuation allowance | 419.2 | 423.5 |
Trademarks and other acquisition related intangibles | (226.4) | (220.6) |
Buildings and equipment | (238.6) | (337.1) |
Capitalized software and other assets | (34) | (28.1) |
Other | (12.1) | (22.1) |
Gross deferred tax liabilities | 511.1 | 607.9 |
Net deferred tax liabilities | $ (91.9) | $ (184.4) |
Retirement Plans (Defined Benef
Retirement Plans (Defined Benefit And Postretirement Benefit Plans) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 29, 2016 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plans and postretirement benefit plans funding | $ 25 | $ 25.4 | $ 0.4 | $ 0.4 |
Expected long-term rate of return on plan assets (percentage) | 6.50% | 7.00% | 8.00% | |
Amortization of net actuarial gain (loss) | $ (3.2) | |||
Defined Benefit Plans | U.S. Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset fund allocation (percentage) | 31.00% | |||
Defined Benefit Plans | Fixed-Income Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset fund allocation (percentage) | 40.00% | |||
Defined Benefit Plans | International Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset fund allocation (percentage) | 16.00% | |||
Defined Benefit Plans | Absolute Return Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset fund allocation (percentage) | 10.00% | |||
Defined Benefit Plans | Real Assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset fund allocation (percentage) | 3.00% | |||
Defined Benefit Plans | U.S. Commingled Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 31.10% | |||
Defined Benefit Plans | U.S. Corporate Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 15.60% | |||
Defined Benefit Plans | International Commingled Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 10.30% | |||
Defined Benefit Plans | U.S. Treasury securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 10.70% | |||
Defined Benefit Plans | Global Fixed-Income Commingled Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 10.10% | |||
Defined Benefit Plans | Public Sector Utility Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 6.10% | |||
Defined Benefit Plans | Other Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Concentration of market risk related to large investments in a single fund or sector (percentage) | 5.00% | |||
Postretirement Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plans and postretirement benefit plans funding | $ 1.1 | $ 1.1 | $ 0.9 | |
Expected employer contribution to the benefit plans | 1.3 | |||
Amortization of net actuarial gain (loss) | (1.7) | |||
Maximum | Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected employer contribution to the benefit plans | $ 0.4 | |||
10-Year Rates | Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual rate of return on plan assets (percentage) | 6.80% | |||
15-Year Rates | Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual rate of return on plan assets (percentage) | 7.60% | |||
20-Year Rates | Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual rate of return on plan assets (percentage) | 8.70% |
Retirement Plans (Postemploymen
Retirement Plans (Postemployment Severance Plan And Defined Contribution Plan) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 1996 | May 29, 2016 | May 31, 2015 | May 25, 2014 | May 29, 2005 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Unrecognized actuarial losses on postemployment severance costs | $ 4,300,000 | $ 2,300,000 | |||
Defined benefit plan, required minimum age (in years) | 21 years | ||||
Defined benefit plan, minimum period to perform service requirement (years) | 1 year | ||||
Percentage of employer contribution (percentage) | 6.00% | ||||
Defined benefit plan net assets | $ 643,300,000 | 610,900,000 | |||
Defined contribution plan, expense recognized | 15,100,000 | 600,000 | $ 700,000 | ||
Amounts payable to highly compensated employees under non-qualified deferred compensation plan | 194,000,000 | 209,600,000 | |||
ESOP borrowings from at variable interest rate | $ 16,900,000 | ||||
ESOP's debt | 2,300,000 | ||||
Additional shares acquired from common stock (shares) | 50,000 | ||||
Dividends received from employer | 700,000 | 1,100,000 | 900,000 | ||
Contributions received from employer | $ 100,000 | $ 0 | $ 0 | ||
Common shares held in ESOP (shares) | 2,700,000 | ||||
ESOP, allocated shares (shares) | 2,200,000 | ||||
ESOP, suspense shares (shares) | 500,000 | ||||
Description of Defined Contribution Pension and Other Postretirement Plans | We have a defined contribution (401(k)) plan covering most employees age 21 and older. We match contributions for participants with at least one year of service up to 6 percent of compensation, based on our performance. The match ranges from a minimum of $0.25 to $1.20 for each dollar contributed by the participant. The plan had net assets of $643.3 million at May 29, 2016 and $610.9 million at May 31, 2015. Expense recognized in fiscal 2016, 2015 and 2014 was $15.1 million, $0.6 million and $0.7 million, respectively. Employees classified as “highly compensated” under the IRC are not eligible to participate in this plan. Instead, highly compensated employees are eligible to participate in a separate non-qualified deferred compensation (FlexComp) plan. This plan allows eligible employees to defer the payment of part of their annual salary and all or part of their annual bonus and provides for awards that approximate the matching contributions and other amounts that participants would have received had they been eligible to participate in our defined contribution and defined benefit plans. Amounts payable to highly compensated employees under the FlexComp plan totaled $194.0 million and $209.6 million at May 29, 2016 and May 31, 2015, respectively. These amounts are included in other current liabilities. | ||||
Additional Loan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
ESOP borrowings from at variable interest rate | $ 1,600,000 | ||||
ESOP's debt | $ 1,200,000 | ||||
Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution, per dollar | 0.25 | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution, per dollar | $ 1.20 | ||||
Employee Stock Ownership Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Variable rate of interest (percentage) | 0.43% | ||||
Maturity date of debt | Dec. 1, 2019 | ||||
Employee Stock Ownership Plan | Additional Loan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Variable rate of interest (percentage) | 0.63% |
Retirement Plans (Funding Of De
Retirement Plans (Funding Of Defined Benefit Pension Plans And Postretirement Benefit Plans) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 29, 2016 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plans and postretirement benefit plans funding | $ 25 | $ 25.4 | $ 0.4 | $ 0.4 |
Postretirement Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plans and postretirement benefit plans funding | $ 1.1 | $ 1.1 | $ 0.9 |
Retirement Plans (Changes In Be
Retirement Plans (Changes In Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Defined Benefit Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | $ 288.4 | $ 283.9 | |
Service cost | 0 | 1.1 | $ 4.4 |
Interest cost | 10.6 | 10 | 10.2 |
Plan amendments | 0 | 0 | |
Plan settlements | 0 | (15.8) | |
Participant contributions | 0 | 0 | |
Benefits paid | (15.9) | (8.6) | |
Actuarial loss | 15.4 | 17.8 | |
Benefit obligation at end of period | 298.5 | 288.4 | 283.9 |
Postretirement Benefit Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 18 | 38.5 | |
Service cost | 0.2 | 0.5 | 0.7 |
Interest cost | 0.8 | 1 | 1.4 |
Plan amendments | 0 | (26.9) | |
Participant contributions | 0 | 0.4 | |
Benefits paid | (1.1) | (1.5) | |
Actuarial loss | 2 | 6 | |
Benefit obligation at end of period | $ 19.9 | $ 18 | $ 38.5 |
Retirement Plans (Change In Pla
Retirement Plans (Change In Plan Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
May 29, 2016 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value at beginning of period | $ 236.6 | |||
Fair value at end of period | $ 242 | 242 | $ 236.6 | |
Defined Benefit Plans | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value at beginning of period | 236.6 | 243.9 | ||
Actual return on plan assets | (4.1) | 16.7 | ||
Employer contributions | 25 | 25.4 | 0.4 | $ 0.4 |
Plan settlements | 0 | (15.8) | ||
Participant contributions | 0 | 0 | ||
Benefits paid | (15.9) | (8.6) | ||
Fair value at end of period | 242 | 242 | 236.6 | 243.9 |
Postretirement Benefit Plan | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value at beginning of period | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 1.1 | 1.1 | 0.9 | |
Participant contributions | 0 | 0.4 | ||
Benefits paid | (1.1) | (1.5) | ||
Fair value at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Retirement Plans (Reconciliatio
Retirement Plans (Reconciliation Of The Plans' Funded Status) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded status at end of period | $ (56.5) | $ (51.8) |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded status at end of period | $ (19.9) | $ (18) |
Retirement Plans (Funded Status
Retirement Plans (Funded Status And Amounts Recognized In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 0 | $ 0 |
Noncurrent liabilities | 56.5 | 51.8 |
Net amounts recognized | 56.5 | 51.8 |
Prior service (cost) credit | 0 | 0 |
Net actuarial gain (loss) | (87.9) | (68.7) |
Net amounts recognized | (87.9) | (68.7) |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 1.3 | 1.1 |
Noncurrent liabilities | 18.6 | 16.9 |
Net amounts recognized | 19.9 | 18 |
Prior service (cost) credit | 11.9 | 14.9 |
Net actuarial gain (loss) | (9.5) | (9) |
Net amounts recognized | $ 2.4 | $ 5.9 |
Retirement Plans (Accumulated B
Retirement Plans (Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated benefit obligation for all defined benefit plans | $ 298.5 | $ 288.4 |
Pension plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 298.5 | 288.4 |
Fair value of plan assets | 242 | 236.6 |
Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets | $ 298.5 | $ 288.4 |
Retirement Plans (Weighted-Aver
Retirement Plans (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average assumptions used to determine benefit obligations, discount rate (percentage) | 4.18% | 4.43% | |
Weighted-average assumptions used to determine net expense, discount rate (percentage) | 4.43% | 4.41% | |
Weighted-average assumptions used to determine net expense, expected long-term rate of return on plan assets (percentage) | 6.50% | 7.00% | 8.00% |
Weighted-average assumptions used to determine net expense, rate of future compensation increases (percentage) | 3.86% | ||
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average assumptions used to determine benefit obligations, discount rate (percentage) | 4.00% | 4.22% | |
Weighted-average assumptions used to determine net expense, discount rate (percentage) | 4.22% | 4.26% |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 1.1 | $ 4.4 |
Interest cost | 10.6 | 10 | 10.2 |
Expected return on plan assets | (14.5) | (15.2) | (17.1) |
Amortization of unrecognized prior service cost | 0 | 0 | 0.1 |
Recognized net actuarial loss | 2.8 | 2.6 | 9 |
Settlement loss recognized | 0 | 6.1 | 0 |
Curtailment gain recognized | 0 | 0 | (0.5) |
Net pension and postretirement cost (benefit) | (1.1) | 4.6 | 6.1 |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.2 | 0.5 | 0.7 |
Interest cost | 0.8 | 1 | 1.4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | (4.8) | (2.8) | (0.1) |
Recognized net actuarial loss | 1.2 | 0.8 | 0 |
Settlement loss recognized | 0 | 0 | 0 |
Curtailment gain recognized | 0 | 0 | 0 |
Net pension and postretirement cost (benefit) | $ (2.6) | $ (0.5) | $ 2 |
Retirement Plans (Fair Values O
Retirement Plans (Fair Values Of Defined Benefit Pension Plans Assets) (Details) - USD ($) $ in Millions | May 29, 2016 | May 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | $ 242 | $ 236.6 |
Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 33.9 | 26.9 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 208.1 | 209.7 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 75.3 | 75.8 |
U.S. Commingled Funds | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Commingled Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 75.3 | 75.8 |
U.S. Commingled Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
International Commingled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 24.9 | 25.7 |
International Commingled Fund | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
International Commingled Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 24.9 | 25.7 |
International Commingled Fund | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Emerging Market Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 6.8 | 13.1 |
Emerging Market Commingled Funds | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Emerging Market Commingled Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 6.8 | 13.1 |
Emerging Market Commingled Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Emerging Market Mutual Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 5.9 | |
Emerging Market Mutual Fund | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 5.9 | |
Emerging Market Mutual Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | |
Emerging Market Mutual Fund | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | |
Real Estate Commingled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 7.5 | 6.9 |
Real Estate Commingled Fund | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Real Estate Commingled Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 7.5 | 6.9 |
Real Estate Commingled Fund | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Treasury securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 25.9 | 25.1 |
U.S. Treasury securities | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 25.9 | 25.1 |
U.S. Treasury securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Treasury securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Corporate Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 37.8 | 41.4 |
U.S. Corporate Securities | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Corporate Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 37.8 | 41.4 |
U.S. Corporate Securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
International Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 6.3 | 8.3 |
International Securities | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
International Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 6.3 | 8.3 |
International Securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Public Sector Utility Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 14.8 | 14.5 |
Public Sector Utility Securities | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Public Sector Utility Securities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 14.8 | 14.5 |
Public Sector Utility Securities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Global Fixed-Income Commingled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 24.4 | 24 |
Global Fixed-Income Commingled Fund | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Global Fixed-Income Commingled Fund | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 24.4 | 24 |
Global Fixed-Income Commingled Fund | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
U.S. Fixed-Income Commingled Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 10.3 | |
U.S. Fixed-Income Commingled Funds | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | |
U.S. Fixed-Income Commingled Funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 10.3 | |
U.S. Fixed-Income Commingled Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | |
Cash & Accruals | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 2.1 | 1.8 |
Cash & Accruals | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 2.1 | 1.8 |
Cash & Accruals | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | 0 | 0 |
Cash & Accruals | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair values of the defined benefit pension plans assets | $ 0 | $ 0 |
Retirement Plans (Expected Bene
Retirement Plans (Expected Benefit Payments) (Details) $ in Millions | May 29, 2016USD ($) |
Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 12.5 |
2,018 | 12.6 |
2,019 | 13 |
2,020 | 13.7 |
2,021 | 14.2 |
2022-2026 | 79.3 |
Postretirement Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1.3 |
2,018 | 1.3 |
2,019 | 1.3 |
2,020 | 1.3 |
2,021 | 1.3 |
2022-2026 | $ 6.2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - shares shares in Millions | May 29, 2016 | Sep. 30, 2015 |
2015 Plan | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Shares available for issuance (shares) | 7.6 | |
Prior Plans | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Shares available for issuance (shares) | 6.6 |
Stock-Based Compensation (Recog
Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 37.3 | $ 53.7 | $ 38.7 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 7.8 | 20.9 | 19.3 |
Restricted stock/restricted stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1.6 | 2 | 0.9 |
Darden stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 15.9 | 13.3 | 12.3 |
Performance Stock Units, Cash Settled | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 6.5 | 14.5 | 2.5 |
Performance Stock Units, Equity Settled | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2.7 | 0 | 0 |
Employee stock purchase plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1.1 | 1.3 | 1.8 |
Director compensation program/other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 1.7 | $ 1.7 | $ 1.9 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation (Black-Scholes Model) (Details) - $ / shares | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Share-based Compensation [Abstract] | |||
Weighted-average fair value (dollars per share) | $ 12.72 | $ 9.41 | $ 10.71 |
Dividend yield (percentage) | 3.30% | 4.50% | 4.40% |
Expected volatility of stock (percentage) | 28.00% | 37.30% | 39.60% |
Risk-free interest rate (percentage) | 1.90% | 2.10% | 1.90% |
Expected option life (years) | 6 years 6 months | 6 years 6 months | 6 years 4 months 24 days |
Options granted Weighted Average Exercise Price Per Share (dollars per share) | $ 64.85 | $ 40.43 | $ 42.93 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options exercised (shares) | (2,400) | (4,200) | (1,800) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options granted Weighted Average Exercise Price Per Share (dollars per share) | $ 64.85 | $ 40.43 | $ 42.93 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding beginning of period (shares) | 7,710 | ||
Awards issued in conversion as a result of the separation of Four Corners (shares) | 970 | ||
Options granted (shares) | 440 | ||
Options exercised (shares) | (2,610) | ||
Options canceled (shares) | (190) | ||
Outstanding end of period (shares) | 6,320 | 7,710 | |
Exercisable (shares) | 4,660 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted Average Exercise Price Per Share Outstanding, beginning balance (dollars per share) | $ 44.18 | ||
Options granted Weighted Average Exercise Price Per Share (dollars per share) | 64.85 | ||
Options exercised Weighted Average Exercise Price Per Share (dollars per share) | 36.21 | ||
Options canceled Weighted Average Exercise Price Per Share (dollars per share) | 46.77 | ||
Weighted Average Exercise Price Per Share Outstanding, ending balance (dollars per share) | 42.04 | $ 44.18 | |
Exercisable Weighted Average Exercise Price Per Share (dollars per share) | $ 40.23 | ||
Weighted Average Remaining Contractual Life Outstanding (years) | 6 years | 6 years 29 days | |
Exercisable Weighted Average Remaining Contractual Life (years) | 5 years 3 months 15 days | ||
Aggregate Intrinsic Value Outstanding, beginning balance | $ 164.6 | ||
Aggregate Intrinsic Value Outstanding, ending balance | 160.6 | $ 164.6 | |
Exercisable Aggregate Intrinsic Value | $ 127 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 73.6 | $ 90.2 | $ 39.9 |
Cash received from option exercises | $ 94.4 | $ 154.6 | $ 50.9 |
Vesting period (years) | 4 years | ||
Maximum terms of awards (years) | 10 years | ||
Darden stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 33.7 | ||
Unrecognized compensation cost, period of recognition, in years (years) | 2 years 9 months 18 days | ||
Fair market value on grant date | $ 21.5 | ||
Stock options | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 8.9 | ||
Unrecognized compensation cost, period of recognition, in years (years) | 1 year 5 months 16 days | ||
Fair market value on grant date | $ 7 | ||
Minimum | Darden stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 4 years | ||
Minimum | Restricted Stock and Restricted Stock Units [Member] | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 1 year | ||
Maximum | Darden stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 5 years | ||
Maximum | Restricted Stock and Restricted Stock Units [Member] | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 4 years |
Stock-Based Compensation (Su105
Stock-Based Compensation (Summary Of Restricted Stock And RSU Activity) (Details) - Restricted Stock Units And RSU shares in Thousands | 12 Months Ended |
May 29, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (shares) | shares | 100 |
Shares granted (shares) | shares | 60 |
Shares vested (shares) | shares | (30) |
Shares canceled (shares) | shares | (20) |
Outstanding end of period (shares) | shares | 110 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 51.19 |
Shares granted, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 62.38 |
Shares vested, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 47.95 |
Shares canceled, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 61.97 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 55.46 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock And RSU Activity) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Minimum vesting period, in years (years) | 4 years | ||
Restricted stock/restricted stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 2.9 | ||
Unrecognized compensation cost, period of recognition, in years (years) | 2 years 3 months 18 days | ||
Fair market value on grant date | $ 1.6 | $ 4.8 | $ 2.3 |
Darden stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 33.7 | ||
Unrecognized compensation cost, period of recognition, in years (years) | 2 years 9 months 18 days | ||
Fair market value on grant date | $ 21.5 | ||
Minimum | Darden stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Minimum vesting period, in years (years) | 4 years | ||
Maximum | Darden stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Minimum vesting period, in years (years) | 5 years |
Stock-Based Compensation (Su107
Stock-Based Compensation (Summary Of Darden Stock Unit Activity) (Details) - Darden stock units shares in Thousands | 12 Months Ended |
May 29, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (shares) | 1,370 |
Awards issued in conversion as a result of the separation of Four Corners (shares) | 180 |
Units granted (shares) | 320 |
Units vested (shares) | (340) |
Units canceled (shares) | (100) |
Outstanding end of period (shares) | 1,430 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 65.54 |
Units granted, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 64.75 |
Units vested, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 63.91 |
Units canceled, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 47.75 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 67.48 |
Stock-Based Compensation (Darde
Stock-Based Compensation (Darden Stock Unit Activity) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 29, 2016 | May 31, 2015 | |
Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Total stock unit liability | $ 50.7 | $ 46.1 |
Unrecognized compensation cost related to unvested stock options granted | $ 33.7 | |
Unrecognized compensation cost, period of recognition, in years (years) | 2 years 9 months 18 days | |
Fair market value on grant date | $ 21.5 | |
Performance Stock Units, Cash Settled | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Total stock unit liability | 10.4 | 15.9 |
Unrecognized compensation cost related to unvested stock options granted | $ 2.4 | |
Unrecognized compensation cost, period of recognition, in years (years) | 1 year 1 month 6 days | |
Fair market value on grant date | $ 11.4 | |
Other Current Liabilities | Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Current stock unit liability | 17.1 | 16.2 |
Other Current Liabilities | Performance Stock Units, Cash Settled | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Current stock unit liability | 7.1 | 11.2 |
Other Liabilities | Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Noncurrent stock unit liability | 33.6 | 29.9 |
Other Liabilities | Performance Stock Units, Cash Settled | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Noncurrent stock unit liability | $ 3.3 | $ 4.7 |
Stock-Based Compensation (Su109
Stock-Based Compensation (Summary Of Performance Stock Unit Activity) (Details) shares in Thousands | 12 Months Ended |
May 29, 2016$ / sharesshares | |
Performance Stock Units, Cash Settled | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (shares) | 380 |
Awards issued in conversion as a result of the separation of Four Corners (shares) | 50 |
Units granted (shares) | 0 |
Units vested (shares) | (170) |
Units canceled (shares) | (100) |
Performance unit adjustment (shares) | 50 |
Outstanding end of period (shares) | 210 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 65.54 |
Units granted, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 0 |
Units vested, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 67.17 |
Units canceled, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 43.35 |
Performance unit adjustment, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 43.84 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 67.48 |
Performance Stock Units, Equity Settled | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (shares) | 0 |
Units granted (shares) | 190 |
Units vested (shares) | 0 |
Units canceled (shares) | (20) |
Outstanding end of period (shares) | 170 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 0 |
Units granted, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 65.23 |
Units vested, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 0 |
Units canceled, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | 65.42 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (dollars per share) | $ / shares | $ 65.21 |
Stock-Based Compensation (Perfo
Stock-Based Compensation (Performance Stock Unit Activity) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 4 years | ||
Performance Stock Units, Cash Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Total stock unit liability | $ 10,400,000 | $ 15,900,000 | |
Vesting period (years) | 3 years | ||
Unrecognized compensation cost related to unvested stock options granted | $ 2,400,000 | ||
Unrecognized compensation cost, period of recognition, in years (years) | 1 year 1 month 6 days | ||
Fair market value on grant date | $ 11,400,000 | ||
Performance Stock Units, Equity Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 8,500,000 | ||
Unrecognized compensation cost, period of recognition, in years (years) | 2 years 8 months 12 days | ||
Fair market value on grant date | $ 0 | ||
Employee stock purchase plan | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Percentage of capital stock (percentage) | 5.00% | ||
Investment authorized | $ 5,000 | ||
Shares available for purchase by employees (shares) | 3,600,000 | ||
Percent of fair market value, common stock purchased by employees (percentage) | 85.00% | ||
Cash received from employees who acquired shares under ESPP | $ 4,800,000 | 5,200,000 | $ 7,200,000 |
Minimum | Performance Stock Units, Cash Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting percentage (percentage) | 0.00% | ||
Minimum | Performance Stock Units, Equity Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Vesting percentage (percentage) | 0.00% | ||
Maximum | Performance Stock Units, Cash Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting percentage (percentage) | 150.00% | ||
Maximum | Performance Stock Units, Equity Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 4 years | ||
Vesting percentage (percentage) | 150.00% | ||
Other Current Liabilities | Performance Stock Units, Cash Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Current stock unit liability | $ 7,100,000 | 11,200,000 | |
Other Liabilities | Performance Stock Units, Cash Settled | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Noncurrent stock unit liability | $ 3,300,000 | $ 4,700,000 |
Workforce Reduction (Details)
Workforce Reduction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0.1 | $ 37.9 | $ 18.1 |
Payments | (37.2) | ||
Adjustments | 0.6 | ||
Balance at May 29, 2016 | 2.7 | ||
Employee termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.2 | 37.4 | 17.2 |
Payments | (35.9) | ||
Adjustments | 0.9 | ||
Balance at May 29, 2016 | 2.6 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (0.1) | $ 0.5 | $ 0.9 |
Payments | (1.3) | ||
Adjustments | (0.3) | ||
Balance at May 29, 2016 | 0.1 | ||
Fiscal Year 2014 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 14.5 | ||
Fiscal Year 2014 Plan | Employee termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 13.4 | ||
Fiscal Year 2014 Plan | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.1 | ||
Fiscal Year 2015 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 24.8 | ||
Fiscal Year 2015 Plan | Employee termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 24.2 | ||
Fiscal Year 2015 Plan | Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 0.6 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 29, 2016 | May 31, 2015 | |
Commitments and Contingencies [Line Items] | ||
Guarantees of leased properties assigned to third parties | $ 154.2 | $ 147.7 |
Fair value of potential payments discounted at pre-tax cost of capital related to guarantee obligations | $ 119.3 | 113.4 |
Lease expiration date | fiscal 2017 through fiscal 2027 | |
Workers Compensation And General Liabilities Accrued | ||
Commitments and Contingencies [Line Items] | ||
Standby letters of credit | $ 116.5 | 124.2 |
Operating Lease Obligation | ||
Commitments and Contingencies [Line Items] | ||
Standby letters of credit | $ 8.4 | $ 14 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Jun. 29, 2016$ / shares |
Subsequent Event [Line Items] | |
Dividend declared date | Jun. 29, 2016 |
Cash dividend declared, per share (dollars per share) | $ 0.56 |
Dividend payment date | Aug. 1, 2016 |
Dividend record date | Jul. 11, 2016 |
Quarterly Data (Schedule Of Una
Quarterly Data (Schedule Of Unaudited Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 29, 2016 | Feb. 28, 2016 | Nov. 29, 2015 | Aug. 30, 2015 | May 31, 2015 | Feb. 22, 2015 | Nov. 23, 2014 | Aug. 24, 2014 | May 29, 2016 | May 31, 2015 | May 25, 2014 | |
Condensed Financial Statements [Line Items] | |||||||||||
Sales | $ 1,790.2 | $ 1,847.5 | $ 1,608.8 | $ 1,687 | $ 1,878.3 | $ 1,730.9 | $ 1,559 | $ 1,595.8 | $ 6,933.5 | $ 6,764 | $ 6,285.6 |
Earnings before income taxes | 175.4 | 138.1 | 24.4 | 111.8 | 126.5 | 147.1 | (54.6) | (43.7) | 449.7 | 175.3 | 174.6 |
Earnings from continuing operations | 140.4 | 108.2 | 30.1 | 81 | 118.1 | 128.4 | (30.8) | (19.3) | 359.7 | 196.4 | 183.2 |
Earnings (loss) from discontinued operations, net of tax | (0.8) | (2.4) | 13.1 | 5.4 | (12.8) | 5.4 | (2) | 522.5 | 15.3 | 513.1 | 103 |
Net earnings | $ 139.6 | $ 105.8 | $ 43.2 | $ 86.4 | $ 105.3 | $ 133.8 | $ (32.8) | $ 503.2 | $ 375 | $ 709.5 | $ 286.2 |
Basic net earnings per share: | |||||||||||
(Loss) earnings from continuing operations, basic (in dollars per share) | $ 1.11 | $ 0.85 | $ 0.23 | $ 0.64 | $ 0.94 | $ 1.03 | $ (0.24) | $ (0.14) | $ 2.82 | $ 1.54 | $ 1.40 |
(Loss) earnings from discontinued operations, basic (in dollars per share) | (0.01) | (0.02) | 0.11 | 0.04 | (0.11) | 0.04 | (0.02) | 3.95 | 0.12 | 4.02 | 0.78 |
Net (loss) earnings, basic (in dollars per share) | 1.10 | 0.83 | 0.34 | 0.68 | 0.83 | 1.07 | (0.26) | 3.81 | 2.94 | 5.56 | 2.18 |
Diluted net earnings per share: | |||||||||||
(Loss) earnings from continuing operations, diluted (in dollars per share) | 1.10 | 0.84 | 0.23 | 0.63 | 0.92 | 1.01 | (0.24) | (0.14) | 2.78 | 1.51 | 1.38 |
(Loss) earnings from discontinued operations, diluted (in dollars per share) | (0.01) | (0.02) | 0.10 | 0.04 | (0.10) | 0.04 | (0.02) | 3.95 | 0.12 | 3.96 | 0.77 |
Net (loss) earnings, diluted (in dollars per share) | 1.09 | 0.82 | 0.33 | 0.67 | 0.82 | 1.05 | (0.26) | 3.81 | 2.90 | 5.47 | $ 2.15 |
Dividends paid per share (dollars per share) | 0.5 | 0.50 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 2.1 | 2.2 | |
Maximum | |||||||||||
Stock price: | |||||||||||
Stock price (dollars per share) | 68.62 | 64.9 | 72.11 | 75.60 | 70.38 | 62.65 | 56.85 | 51.21 | 75.6 | 70.38 | |
Minimum | |||||||||||
Stock price: | |||||||||||
Stock price (dollars per share) | $ 61.9 | $ 55.01 | $ 53.38 | $ 63.68 | $ 61.31 | $ 54.96 | $ 46.7 | $ 43.56 | $ 53.38 | $ 43.56 |