EXHIBIT 12
COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
EXHIBIT 12
DARDEN RESTAURANTS, INC.
COMPUTATION OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES
(Historical and Pro Forma)
Computation of Ratio of Historical Consolidated Earnings to Fixed Charges
Fiscal Year Ended
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May 30, May 31, May 25, May 26, May 28,
1999 1998 1997 1996 1995
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($ Amounts in Thousands)
Consolidated Earnings from Operations before
Restructuring and Asset Impairment Expense or
Credit, Cumulative Effect of Accounting
Changes and Income Taxes.......................... $ 207,414 $ 153,672 $ 75,401 $ 188,718 $ 164,446
Plus Fixed Charges.................................. 39,929 38,569 39,582 40,822 42,685
Less Capitalized Interest........................... (593) (1,018) (739) (2,007) (4,327)
--------- --------- --------- --------- ---------
Consolidated Earnings from Operations before
Restructuring and Asset Impairment Expense or
Credit, Cumulative Effect of Accounting
Changes and Income Taxes Available to Cover
Fixed Charges..................................... $ 246,750 $ 191,223 $ 114,244 $ 227,533 $ 202,804
========= ========= ========= ========= =========
Ratio of Consolidated Earnings to Fixed Charges..... 6.18 4.96 2.89 5.57 4.75
========= ========= ========= ========= =========
Computation of Ratio of Pro Forma Consolidated Earnings to Fixed Charges
Fiscal Year Ended
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May 30, May 31, May 25, May 26, May 28,
1999 1998 1997 1996 1995
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($ Amounts in Thousands)
Pro Forma Consolidated Earnings from Operations
before Restructuring and Asset Impairment
Expense or Credit, Cumulative Effect of
Accounting Changes and Income Taxes...............
$ 207,414 $ 153,672 $ 75,401 $ 188,718 $ 159,076
Plus Fixed Charges.................................. 39,929 38,569 39,582 40,822 42,685
Less Capitalized Interest........................... (593) (1,018) (739) (2,007) (4,327)
--------- --------- --------- --------- ---------
Pro Forma Consolidated Earnings from Operations
before Restructuring and Asset Impairment
Expense or Credit, Cumulative Effect of
Accounting Changes and Income Taxes Available
to Cover Fixed Charges............................ $ 246,750 $ 191,223 $ 114,244 $ 227,533 $ 197,434
========= ========= ========= ========= =========
Ratio of Pro Forma Consolidated Earnings to
Fixed Charges..................................... 6.18 4.96 2.89 5.57 4.63
========= ========= ========= ========= =========
For purposes of computing the ratio of consolidated earnings to fixed charges,
earnings represent consolidated pretax earnings from continuing operations plus
fixed charges (net of capitalized interest). Fixed charges represent interest
(whether expensed or capitalized) and 40 percent (the percent deemed
representative of the interest factor) of minimum restaurant and equipment lease
payments for continuing operations.
The pro forma adjustments to the historical consolidated statement of earnings
for the fiscal year ended May 28, 1995 consist of (a) additional annual general
and administrative expenses of $5,370 which would have been incurred by Darden
as a separate publicly-held company, based on estimates by the management of
Darden and General Mills, and (b) the estimated income tax benefit associated
with the pro forma adjustment described in clause (a) above at an assumed
combined state and federal income tax rate of 39.8 percent.