ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||||||||
Non-accelerated filer | ☐ | (Do not check if a smaller reporting company) | Smaller reporting company | ||||||||||||||
Emerging growth company |
PART I | Page | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Number of restaurants | Olive Garden | LongHorn Steakhouse | Cheddar’s Scratch Kitchen | Yard House (1) | The Capital Grille | Seasons 52 | Bahama Breeze | Eddie V’s | The Capital Burger | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Owned and operated: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | 897 | 562 | 180 | 86 | 62 | 44 | 42 | 29 | 4 | 1,906 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Canada | 8 | — | — | — | — | — | — | — | — | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 905 | 562 | 180 | 86 | 62 | 44 | 42 | 29 | 4 | 1,914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchised: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States (2) | 11 | 18 | 4 | — | — | — | 1 | — | — | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Latin America | 29 | — | — | — | 2 | — | — | — | — | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia | 2 | — | — | — | — | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Middle East | 1 | — | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
The Caribbean | 1 | — | — | — | — | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 44 | 18 | 4 | — | 2 | — | 1 | — | — | 69 |
Fiscal Year | Olive Garden | LongHorn Steakhouse | Cheddar’s Scratch Kitchen | Yard House | The Capital Grille | Seasons 52 | Bahama Breeze | Eddie V’s | The Capital Burger | Total Restaurants | Total Sales (in millions) (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 866 | 514 | 161 | 79 | 57 | 44 | 42 | 21 | 1 | 1,785 | $8,510.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 868 | 522 | 165 | 81 | 58 | 44 | 41 | 23 | 2 | 1,804 | $7,806.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 875 | 533 | 170 | 81 | 60 | 44 | 42 | 26 | 3 | 1,834 | $7,196.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 884 | 546 | 172 | 85 | 62 | 45 | 42 | 28 | 3 | 1,867 | $9,630.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 905 | 562 | 180 | 86 | 62 | 44 | 42 | 29 | 4 | 1,914 | $10,487.8 |
Actual - Fiscal 2023 | Projected - Fiscal 2024 (4) | Pro-Forma New Restaurants (4) | |||||||||||||||||||||||||||||||||||||||
Restaurant Openings | Restaurant Closings | New Restaurant Openings | Capital Investment Range (1) (in millions) | Approximate Square Feet (2) | Approximate Dining Seats (3) | ||||||||||||||||||||||||||||||||||||
Olive Garden | 22 | 1 | 18-22 | $4.0 | - | $5.8 | 7,700 | 250 | |||||||||||||||||||||||||||||||||
LongHorn Steakhouse | 18 | 2 | 15-18 | $3.3 | - | $4.6 | 5,700 | 180 | |||||||||||||||||||||||||||||||||
Cheddar’s Scratch Kitchen | 10 | 2 | 4-5 | $4.0 | - | $5.3 | 6,000 | 210 | |||||||||||||||||||||||||||||||||
Yard House | 2 | 1 | 2-3 | $7.0 | - | $9.2 | 11,000 | 360 | |||||||||||||||||||||||||||||||||
The Capital Grille | 2 | 2 | 2-4 | $8.5 | - | $10.0 | 10,000 | 320 | |||||||||||||||||||||||||||||||||
Seasons 52 | 1 | 2 | 0-1 | $6.0 | - | $7.2 | 9,000 | 250 | |||||||||||||||||||||||||||||||||
Bahama Breeze | — | — | 1-2 | $5.6 | - | $7.0 | 9,000 | 350 | |||||||||||||||||||||||||||||||||
Eddie V’s | 1 | — | 2-3 | $8.5 | - | $10.0 | 10,000 | 320 | |||||||||||||||||||||||||||||||||
Totals | 56 | 10 | 46-53 |
Total team members (hourly and salaried) | 187,384 | ||||
Total number of hourly team members | 177,164 | ||||
Percent of hourly team members – female | 58% | ||||
Percent of hourly team members – members of racial or ethnic minority groups | 55% | ||||
Total number of new hires of hourly team members during fiscal 2023 | 182,882 | ||||
Percent of hourly new hires – female | 57% | ||||
Percent of hourly new hires – members of racial or ethnic minority groups | 57% |
Greenhouse Gas (GHG) Emissions(1) | ||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||
(in metric tons CO2e) | May 29, 2022 | May 30, 2021 | May 31, 2020 | |||||||||||||||||
Average Per Restaurant (2) | 412 | 373(3) | 424 | |||||||||||||||||
Total - Scope 1 and 2 | 769,811(4) | 683,294 | 774,200 |
Land-Only Leases (we own buildings and equipment) | 962 | ||||
Ground and Building Leases | 661 | ||||
Space/In-Line/Other Leases | 216 | ||||
Total | 1,839 |
(Dollars in millions, except per share data) | Total Number of Shares Purchased (1) (2) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (3) | ||||||||||
February 27, 2023 through April 2, 2023 | 237,715 | $147.23 | 237,715 | $652.2 | ||||||||||
April 3, 2023 through Apri1 30, 2023 | 2,004 | $151.93 | 2,004 | $651.9 | ||||||||||
May 1, 2023 through May 28, 2023 | — | — | — | $651.9 | ||||||||||
Quarter-to-Date | 239,719 | $147.27 | 239,719 | $651.9 |
Indexed Returns | ||||||||||||||||||||||||||||||||||||||
Company/Index | May 2018 | May 2019 | May 2020 | May 2021 | May 2022 | May 2023 | ||||||||||||||||||||||||||||||||
Darden Restaurants, Inc. | $ | 100.00 | $ | 140.46 | $ | 91.92 | $ | 173.35 | $ | 157.33 | $ | 208.64 | ||||||||||||||||||||||||||
S&P 500 Stock Index | $ | 100.00 | $ | 105.95 | $ | 116.47 | $ | 163.42 | $ | 163.95 | $ | 168.68 | ||||||||||||||||||||||||||
S&P Composite 1500 Restaurant Sub-Index | $ | 100.00 | $ | 126.24 | $ | 126.09 | $ | 176.64 | $ | 160.94 | $ | 197.37 |
Fiscal Year Ended | Percent Change | ||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | 2023 v. 2022 | ||||||||||||||
Sales | $ | 10,487.8 | $ | 9,630.0 | 8.9% | ||||||||||||
Costs and expenses: | |||||||||||||||||
Food and beverage | 3,355.9 | 2,943.6 | 14.0% | ||||||||||||||
Restaurant labor | 3,346.3 | 3,108.8 | 7.6% | ||||||||||||||
Restaurant expenses | 1,702.2 | 1,582.6 | 7.6% | ||||||||||||||
Marketing expenses | 118.3 | 93.2 | 26.9% | ||||||||||||||
General and administrative expenses | 386.1 | 373.2 | 3.5% | ||||||||||||||
Depreciation and amortization | 387.8 | 368.4 | 5.3% | ||||||||||||||
Impairments and disposal of assets, net | (10.6) | (2.0) | NM | ||||||||||||||
Total operating costs and expenses | $ | 9,286.0 | $ | 8,467.8 | 9.7% | ||||||||||||
Operating income | $ | 1,201.8 | $ | 1,162.2 | 3.4% | ||||||||||||
Interest, net | 81.3 | 68.7 | 18.3% | ||||||||||||||
Earnings before income taxes | $ | 1,120.5 | $ | 1,093.5 | 2.5% | ||||||||||||
Income tax expense (1) | 137.0 | 138.8 | (1.3)% | ||||||||||||||
Earnings from continuing operations | $ | 983.5 | $ | 954.7 | 3.0% | ||||||||||||
Losses from discontinued operations, net of tax | (1.6) | (1.9) | (15.8)% | ||||||||||||||
Net earnings | $ | 981.9 | $ | 952.8 | 3.1% | ||||||||||||
(1) Effective tax rate | 12.2 | % | 12.7 | % | |||||||||||||
NM- Percentage change not considered meaningful. |
May 28, 2023 | May 29, 2022 | |||||||||||||
Olive Garden | 905 | 884 | ||||||||||||
LongHorn Steakhouse | 562 | 546 | ||||||||||||
Cheddar’s Scratch Kitchen | 180 | 172 | ||||||||||||
Yard House | 86 | 85 | ||||||||||||
The Capital Grille | 62 | 62 | ||||||||||||
Seasons 52 | 44 | 45 | ||||||||||||
Bahama Breeze | 42 | 42 | ||||||||||||
Eddie V’s | 29 | 28 | ||||||||||||
The Capital Burger | 4 | 3 | ||||||||||||
Total | 1,914 | 1,867 |
Sales | Average Annual Sales per Restaurant (2) | ||||||||||||||||||||||||||||||||||
Fiscal Year Ended | Percent Change | Fiscal Year Ended | |||||||||||||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | SRS (1) | May 28, 2023 | May 29, 2022 | ||||||||||||||||||||||||||||||
Olive Garden | $ | 4,877.8 | $ | 4,503.9 | 8.3 | % | 6.7 | % | $ | 5.5 | $ | 5.1 | |||||||||||||||||||||||
LongHorn Steakhouse | $ | 2,612.3 | $ | 2,374.3 | 10.0 | % | 7.4 | % | $ | 4.7 | $ | 4.4 | |||||||||||||||||||||||
Fine Dining | $ | 830.8 | $ | 776.2 | 7.0 | % | 5.7 | % | $ | 9.2 | $ | 8.8 | |||||||||||||||||||||||
Other Business | $ | 2,166.9 | $ | 1,975.6 | 9.7 | % | 7.0 | % | $ | 6.0 | $ | 5.7 | |||||||||||||||||||||||
$ | 10,487.8 | $ | 9,630.0 | ||||||||||||||||||||||||||||||||
Fiscal Year Ended | |||||||||||
May 28, 2023 | May 29, 2022 | ||||||||||
Sales | 100.0 | % | 100.0 | % | |||||||
Costs and expenses: | |||||||||||
Food and beverage | 32.0 | 30.6 | |||||||||
Restaurant labor | 31.9 | 32.3 | |||||||||
Restaurant expenses | 16.2 | 16.4 | |||||||||
Marketing expenses | 1.1 | 1.0 | |||||||||
General and administrative expenses | 3.7 | 3.9 | |||||||||
Depreciation and amortization | 3.7 | 3.8 | |||||||||
Impairments and disposal of assets, net | (0.1) | — | |||||||||
Total operating costs and expenses | 88.5 | % | 87.9 | % | |||||||
Operating income | 11.5 | % | 12.1 | % | |||||||
Interest, net | 0.8 | 0.7 | |||||||||
Earnings before income taxes | 10.7 | % | 11.4 | % | |||||||
Income tax expense (benefit) | 1.3 | 1.4 | |||||||||
Earnings from continuing operations | 9.4 | % | 9.9 | % | |||||||
Fiscal Year Ended | Change | ||||||||||||||||||||||
Segment | May 28, 2023 | May 29, 2022 | 2023 vs 2022 | ||||||||||||||||||||
Olive Garden | 21.0% | 22.1% | (110) | BP | |||||||||||||||||||
LongHorn Steakhouse | 16.5% | 17.6% | (110) | BP | |||||||||||||||||||
Fine Dining | 19.1% | 21.3% | (220) | BP | |||||||||||||||||||
Other Business | 13.9% | 15.2% | (130) | BP |
(in millions) | Payments Due by Period | |||||||||||||||||||||||||||||||
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||
Long-term debt (1) | $ | 1,471.7 | $ | 41.6 | $ | 83.2 | $ | 563.9 | $ | 783.0 | ||||||||||||||||||||||
Leases (2) | 3,039.1 | 441.3 | 836.6 | 720.6 | 1,040.6 | |||||||||||||||||||||||||||
Purchase obligations (3) | 697.7 | 654.7 | 41.1 | 1.9 | — | |||||||||||||||||||||||||||
Benefit obligations (4) | 383.7 | 32.5 | 68.3 | 73.2 | 209.7 | |||||||||||||||||||||||||||
Unrecognized income tax benefits (5) | 25.6 | 9.6 | 3.6 | 12.4 | — | |||||||||||||||||||||||||||
Total contractual obligations | $ | 5,617.8 | $ | 1,179.7 | $ | 1,032.8 | $ | 1,372.0 | $ | 2,033.3 | ||||||||||||||||||||||
(in millions) | Amount of Commitment Expiration per Period | |||||||||||||||||||||||||||||||
Other Commercial Commitments | Total Amounts Committed | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||
Standby letters of credit (6) | $ | 100.6 | $ | 100.6 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Guarantees (7) | 82.0 | 28.5 | 35.9 | 13.3 | 4.3 | |||||||||||||||||||||||||||
Total commercial commitments | $ | 182.6 | $ | 129.1 | $ | 35.9 | $ | 13.3 | $ | 4.3 |
(in millions, except ratios) | May 28, 2023 | May 29, 2022 | ||||||||||||
CAPITAL STRUCTURE | ||||||||||||||
Long-term debt, excluding unamortized discount and issuance costs and fair value hedge | 939.1 | 939.1 | ||||||||||||
Total debt | $ | 939.1 | $ | 939.1 | ||||||||||
Stockholders’ equity | 2,201.5 | 2,198.2 | ||||||||||||
Total capital | $ | 3,140.6 | $ | 3,137.3 | ||||||||||
CALCULATION OF ADJUSTED CAPITAL | ||||||||||||||
Total debt | $ | 939.1 | $ | 939.1 | ||||||||||
Lease-debt equivalent | 2,545.8 | 2,459.0 | ||||||||||||
Guarantees | 82.0 | 101.0 | ||||||||||||
Adjusted debt | $ | 3,566.9 | $ | 3,499.1 | ||||||||||
Stockholders’ equity | 2,201.5 | 2,198.2 | ||||||||||||
Adjusted total capital | $ | 5,768.4 | $ | 5,697.3 | ||||||||||
CAPITAL STRUCTURE RATIOS | ||||||||||||||
Debt to total capital ratio | 30 | % | 30 | % | ||||||||||
Adjusted debt to adjusted total capital ratio | 62 | % | 61 | % |
Page | |||||
Report of Independent Registered Public Accounting Firm ( | |||||
Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
Sales | $ | $ | $ | ||||||||||||||
Costs and expenses: | |||||||||||||||||
Food and beverage | |||||||||||||||||
Restaurant labor | |||||||||||||||||
Restaurant expenses | |||||||||||||||||
Marketing expenses | |||||||||||||||||
General and administrative expenses | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Impairments and disposal of assets, net | ( | ( | |||||||||||||||
Total operating costs and expenses | $ | $ | $ | ||||||||||||||
Operating income | $ | $ | $ | ||||||||||||||
Interest, net | |||||||||||||||||
Other (income) expense, net | |||||||||||||||||
Earnings before income taxes | $ | $ | $ | ||||||||||||||
Income tax expense (benefit) | ( | ||||||||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||||||||
Losses from discontinued operations, net of tax benefit of $ | ( | ( | ( | ||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Basic net earnings per share: | |||||||||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||||||||
Losses from discontinued operations | ( | ( | ( | ||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Diluted net earnings per share: | |||||||||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||||||||
Losses from discontinued operations | ( | ( | ( | ||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Average number of common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted |
Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Foreign currency adjustment | ( | ( | |||||||||||||||
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $( | ( | ||||||||||||||||
Net unamortized gain (loss) arising during period, including amortization of unrecognized net actuarial loss, net of taxes of $ | |||||||||||||||||
Other comprehensive income (loss) | $ | $ | ( | $ | |||||||||||||
Total comprehensive income | $ | $ | $ |
May 28, 2023 | May 29, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, net | |||||||||||
Inventories | |||||||||||
Prepaid income taxes | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | $ | $ | |||||||||
Land, buildings and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Trademarks | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued payroll | |||||||||||
Accrued income taxes | |||||||||||
Other accrued taxes | |||||||||||
Unearned revenues | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | $ | $ | |||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Operating lease liabilities - non-current | |||||||||||
Other liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Stockholders’ equity: | |||||||||||
Common stock and surplus, | |||||||||||
Preferred stock, | |||||||||||
Retained earnings (deficit) | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total stockholders’ equity | $ | $ | |||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock And Surplus | ||||||||||||||||||||||||||
Shares | Amount | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | ||||||||||||||||||||||
Balances at May 31, 2020 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Net earnings | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | ( | |||||||||||||||||||||
Stock option exercises | — | — | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | |||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | ( | |||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan and other plans | — | — | ||||||||||||||||||||||||
Other | — | ( | — | ( | ||||||||||||||||||||||
Balances at May 30, 2021 | $ | $ | $ | $ | ||||||||||||||||||||||
Net earnings | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | ( | ( | |||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | ( | |||||||||||||||||||||
Stock option exercises | — | — | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | |||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | ( | |||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan and other plans | — | — | ||||||||||||||||||||||||
Other | — | — | ||||||||||||||||||||||||
Balances at May 29, 2022 | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Net earnings | — | — | — | |||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||
Dividends declared ($ | — | — | ( | — | ( | |||||||||||||||||||||
Stock option exercises | — | — | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | |||||||||||||||||||||||
Repurchases of common stock | ( | ( | ( | — | ( | |||||||||||||||||||||
Issuance of stock under Employee Stock Purchase Plan and other plans | — | — | ||||||||||||||||||||||||
Other | — | — | — | |||||||||||||||||||||||
Balances at May 28, 2023 | $ | $ | ( | $ | $ | |||||||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
Cash flows - operating activities | |||||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Losses from discontinued operations, net of tax | |||||||||||||||||
Adjustments to reconcile net earnings (loss) from continuing operations to cash flows: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Impairments and disposal of assets, net | ( | ( | |||||||||||||||
Stock-based compensation expense | |||||||||||||||||
Change in current assets and liabilities | ( | ( | |||||||||||||||
Contributions to pension and postretirement plans | ( | ( | ( | ||||||||||||||
Deferred income taxes | ( | ( | |||||||||||||||
Change in other assets and liabilities | ( | ||||||||||||||||
Other, net | ( | ||||||||||||||||
Net cash provided by operating activities of continuing operations | $ | $ | $ | ||||||||||||||
Cash flows - investing activities | |||||||||||||||||
Purchases of land, buildings and equipment | ( | ( | ( | ||||||||||||||
Proceeds from disposal of land, buildings and equipment | |||||||||||||||||
Purchases of capitalized software and other assets | ( | ( | ( | ||||||||||||||
Other, net | |||||||||||||||||
Net cash used in investing activities of continuing operations | $ | ( | $ | ( | $ | ( | |||||||||||
Cash flows - financing activities | |||||||||||||||||
Net proceeds from issuance of common stock | |||||||||||||||||
Dividends paid | ( | ( | ( | ||||||||||||||
Repurchases of common stock | ( | ( | ( | ||||||||||||||
Repayments of short-term debt | ( | ( | |||||||||||||||
Proceeds from issuance of short-term debt | |||||||||||||||||
Principal payments on finance leases | ( | ( | ( | ||||||||||||||
Other, net | ( | ( | |||||||||||||||
Net cash used in financing activities of continuing operations | $ | ( | $ | ( | $ | ( | |||||||||||
Cash flows - discontinued operations | |||||||||||||||||
Net cash provided by (used in) operating activities of discontinued operations | ( | ( | |||||||||||||||
Net cash provided by (used in) discontinued operations | $ | ( | $ | ( | $ | ||||||||||||
(Decrease) increase in cash and cash equivalents | ( | ( | |||||||||||||||
Cash and cash equivalents - beginning of year | |||||||||||||||||
Cash and cash equivalents - end of year | $ | $ | $ |
Reconciliation of cash, cash equivalents, and restricted cash: | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash included in prepaid and other current assets | |||||||||||||||||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
Cash flows from changes in current assets and liabilities | |||||||||||||||||
Receivables, net | $ | ( | $ | ( | $ | ( | |||||||||||
Inventories | ( | ( | |||||||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||||||||
Accounts payable | |||||||||||||||||
Accrued payroll | ( | ||||||||||||||||
Prepaid/accrued income taxes | ( | ||||||||||||||||
Other accrued taxes | |||||||||||||||||
Unearned revenues | |||||||||||||||||
Other current liabilities | ( | ||||||||||||||||
Change in current assets and liabilities | $ | $ | ( | $ | ( |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Short-term investments | $ | $ | |||||||||
Credit card receivables | |||||||||||
Depository accounts | |||||||||||
Total cash and cash equivalents | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Depreciation and amortization on buildings and equipment | $ | $ | $ | ||||||||||||||
Losses on replacement of equipment |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Capitalized software | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Capitalized software, net of accumulated amortization | $ | $ |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Definite-lived intangible assets | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Definite-lived intangible assets, net of accumulated amortization | $ | $ | |||||||||
Definite-lived intangible liabilities | $ | ( | $ | ( | |||||||
Accumulated amortization | |||||||||||
Definite-lived intangible liabilities, net of accumulated amortization | $ | ( | $ | ( |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Amortization expense - capitalized software | $ | $ | $ | ||||||||||||||
Amortization expense - other definite-lived intangibles |
Goodwill | Trademarks | ||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 28, 2023 | May 29, 2022 | |||||||||||||||||||
Olive Garden | $ | $ | $ | $ | |||||||||||||||||||
LongHorn Steakhouse | |||||||||||||||||||||||
Cheddar’s Scratch Kitchen | |||||||||||||||||||||||
Yard House | |||||||||||||||||||||||
The Capital Grille | |||||||||||||||||||||||
Seasons 52 | |||||||||||||||||||||||
Eddie V’s | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions, except per share data) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||||||||
Losses from discontinued operations | ( | ( | ( | ||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Weighted average common shares outstanding – Basic | |||||||||||||||||
Effect of dilutive stock-based compensation | |||||||||||||||||
Weighted average common shares outstanding – Diluted | |||||||||||||||||
Basic net earnings per share: | |||||||||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||||||||
Losses from discontinued operations | ( | ( | ( | ||||||||||||||
Net earnings | $ | $ | $ | ||||||||||||||
Diluted net earnings per share: | |||||||||||||||||
Earnings from continuing operations | $ | $ | $ | ||||||||||||||
Losses from discontinued operations | ( | ( | ( | ||||||||||||||
Net earnings | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Anti-dilutive stock-based compensation awards |
(in millions) | May 28, 2023 | May 29, 2022 | ||||||||||||
Unearned revenues | ||||||||||||||
Deferred gift card revenue | $ | $ | ||||||||||||
Deferred gift card discounts | ( | ( | ||||||||||||
Other | ||||||||||||||
Total | $ | $ | ||||||||||||
Other liabilities | ||||||||||||||
Deferred franchise fees - non-current | $ | $ |
Twelve Months Ended | ||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | ||||||||||||
Beginning balance | $ | $ | ||||||||||||
Activations | ||||||||||||||
Redemptions and breakage | ( | ( | ||||||||||||
Ending balance | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Restaurant impairments | $ | $ | $ | ||||||||||||||
Disposal (gains) losses | ( | ( | ( | ||||||||||||||
Other | ( | ||||||||||||||||
Impairments and disposal of assets, net | $ | ( | $ | ( | $ |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Land | $ | $ | |||||||||
Buildings | |||||||||||
Equipment | |||||||||||
Assets under finance leases | |||||||||||
Construction in progress | |||||||||||
Total land, buildings and equipment | $ | $ | |||||||||
Less accumulated depreciation and amortization | ( | ( | |||||||||
Less amortization associated with assets under finance leases | ( | ( | |||||||||
Land, buildings and equipment, net | $ | $ |
(in millions) | Olive Garden | LongHorn Steakhouse | Fine Dining | Other Business | Corporate | Consolidated | |||||||||||||||||
At May 28, 2023 and for the year ended | |||||||||||||||||||||||
Sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restaurant and marketing expenses | ( | ||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Impairments and disposal of assets, net | ( | ( | ( | ||||||||||||||||||||
Segment assets | |||||||||||||||||||||||
Purchases of land, buildings and equipment |
(in millions) | Olive Garden | LongHorn Steakhouse | Fine Dining | Other Business | Corporate | Consolidated | |||||||||||||||||
At May 29, 2022 and for the year ended | |||||||||||||||||||||||
Sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restaurant and marketing expenses | ( | ||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Impairments and disposal of assets, net | ( | ( | |||||||||||||||||||||
Segment assets | |||||||||||||||||||||||
Purchases of land, buildings and equipment |
(in millions) | Olive Garden | LongHorn Steakhouse | Fine Dining | Other Business | Corporate | Consolidated | |||||||||||||||||
At May 30, 2021 and for the year ended | |||||||||||||||||||||||
Sales | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Restaurant and marketing expenses | |||||||||||||||||||||||
Segment profit | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Impairments and disposal of assets, net | |||||||||||||||||||||||
Purchases of land, buildings and equipment |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Segment profit | $ | $ | $ | ||||||||||||||
Less general and administrative expenses | ( | ( | ( | ||||||||||||||
Less depreciation and amortization | ( | ( | ( | ||||||||||||||
Less impairments and disposal of assets, net | ( | ||||||||||||||||
Less interest, net | ( | ( | ( | ||||||||||||||
Less other (income) expense, net | ( | ||||||||||||||||
Earnings before income taxes | $ | $ | $ |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
$ | $ | ||||||||||
Total long-term debt | $ | $ | |||||||||
( | ( | ||||||||||
Less unamortized discount and issuance costs | ( | ( | |||||||||
Total long-term debt less unamortized discount and issuance costs | $ | $ | |||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Fiscal Year | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | ||||||||||||||||||||||||||||||||
Debt repayments | $ | $ | $ | $ | $ | $ |
Fair Values | |||||||||||||||||||||||||||||||||||||||||
(in millions, except per share data) | Number of Shares Outstanding | Weighted-Average Per Share Forward Rates | Notional Values | Derivative Assets (1) | Derivative Liabilities (1) | ||||||||||||||||||||||||||||||||||||
May 28, 2023 | May 28, 2023 | May 29, 2022 | May 28, 2023 | May 29, 2022 | |||||||||||||||||||||||||||||||||||||
Equity Forwards | |||||||||||||||||||||||||||||||||||||||||
Designated | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
Not designated | $ | $ | |||||||||||||||||||||||||||||||||||||||
Total equity forwards (2) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Commodity contracts | |||||||||||||||||||||||||||||||||||||||||
Designated | N/A | N/A | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Not designated | N/A | N/A | $ | ||||||||||||||||||||||||||||||||||||||
Total commodity contracts (3) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Interest rate related | |||||||||||||||||||||||||||||||||||||||||
Designated | N/A | N/A | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Not designated | N/A | N/A | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Total interest rate related | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Total derivative contracts | $ | $ | $ | $ |
Amount of Gain (Loss) Recognized in AOCI | Amount of Gain (Loss) Reclassified from AOCI to Earnings | |||||||||||||||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||||||||||||||||||||
Equity (1) | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||
Commodity (2) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Interest rate (3) | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | ( | $ | ( | $ | $ | ( | $ | $ |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | Amount of Gain (Loss) Recognized in Earnings on Related Hedged Item | |||||||||||||||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||||||||||||||||||||
Interest rate (1)(2) | $ | ( | $ | ( | $ | ( | $ | $ | $ |
Amount of Gain (Loss) Recognized in Earnings | ||||||||||||||||||||
(in millions) | Fiscal Year Ended | |||||||||||||||||||
Location of Gain (Loss) Recognized in Earnings on Derivatives | May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||||
Food and beverage costs and restaurant expenses | $ | $ | $ | |||||||||||||||||
General and administrative expenses | ( | |||||||||||||||||||
Total | $ | $ | ( | $ |
Items Measured at Fair Value at May 28, 2023 | |||||||||||||||||||||||||||||
(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) | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Commodities futures, swaps & options | (1) | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
Equity forwards | (2) | ||||||||||||||||||||||||||||
Interest rate swaps | (3) | ( | ( | ||||||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Items Measured at Fair Value at May 29, 2022 | |||||||||||||||||||||||||||||
(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) | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||
Commodities futures, swaps & options | (1) | $ | $ | $ | $ | ||||||||||||||||||||||||
Equity forwards | (2) | ( | ( | ||||||||||||||||||||||||||
Interest rate swaps | (3) | ( | ( | ||||||||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
(in millions) | Foreign Currency Translation Adjustment | Unrealized Gains (Losses) on Derivatives | Benefit Plan Funding Position | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Balances at May 30, 2021 | $ | $ | $ | ( | $ | ||||||||||||||||||
Gain (loss) | ( | ( | ( | ||||||||||||||||||||
Reclassification realized in net earnings | ( | ( | |||||||||||||||||||||
Balances at May 29, 2022 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Gain (loss) | ( | ||||||||||||||||||||||
Reclassification realized in net earnings | |||||||||||||||||||||||
Balances at May 28, 2023 | $ | $ | $ | ( | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) AOCI Components | Location of Gain (Loss) Recognized in Earnings | May 28, 2023 | May 29, 2022 | ||||||||||||||
Derivatives | |||||||||||||||||
Commodity contracts | (1) | $ | ( | $ | |||||||||||||
Equity contracts | (2) | ( | |||||||||||||||
Interest rate contracts | (3) | ( | ( | ||||||||||||||
Total before tax | $ | ( | $ | ||||||||||||||
Tax benefit (expense) | ( | ||||||||||||||||
Net of tax | $ | ( | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) AOCI Components | Location of Gain (Loss) Recognized in Earnings | May 28, 2023 | May 29, 2022 | ||||||||||||||
Benefit plan funding position | |||||||||||||||||
Pension/postretirement plans- actuarial losses | (4) | $ | ( | $ | ( | ||||||||||||
Recognized net actuarial gain - other plans | (5) | ( | ( | ||||||||||||||
Total before tax | $ | ( | $ | ( | |||||||||||||
Tax benefit (expense) | |||||||||||||||||
Net of tax | $ | ( | $ | ( |
(in millions) | May 28, 2023 | May 29, 2022 | ||||||||||||
Operating lease expense | $ | $ | ||||||||||||
Finance lease expense | ||||||||||||||
Amortization of leased assets | ||||||||||||||
Interest on lease liabilities | ||||||||||||||
Variable lease expense | ||||||||||||||
Total lease expense | $ | $ |
(in millions) | Balance Sheet Classification | May 28, 2023 | May 29, 2022 | |||||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | $ | $ | |||||||||||||||||
Finance lease right-of-use assets | ||||||||||||||||||||
Total lease assets, net | $ | $ | ||||||||||||||||||
Operating lease liabilities - current | $ | $ | ||||||||||||||||||
Finance lease liabilities - current | ||||||||||||||||||||
Operating lease liabilities - non-current | Operating lease liabilities - non-current | |||||||||||||||||||
Finance lease liabilities - non-current | ||||||||||||||||||||
Total lease liabilities | $ | $ |
(in millions) | May 28, 2023 | May 29, 2022 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||
Operating cash flows from operating leases | $ | $ | ||||||||||||
Operating cash flows from finance leases | ||||||||||||||
Financing cash flows from finance leases | ||||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | ||||||||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | ||||||||||||||
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance |
(in millions) | May 28, 2023 | May 29, 2022 | ||||||||||||
Weighted-Average Remaining Lease Term (Years) | ||||||||||||||
Operating leases | ||||||||||||||
Finance leases | ||||||||||||||
Weighted-Average Discount Rate (1) | ||||||||||||||
Operating leases | % | % | ||||||||||||
Finance leases | % | % |
(in millions) | ||||||||||||||
Fiscal Year | Operating Leases | Finance Leases | ||||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
Thereafter | ||||||||||||||
Total future lease commitments (1) | $ | $ | ||||||||||||
Less imputed interest | ( | ( | ||||||||||||
Present value of lease liabilities (2) | $ | $ |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Receivables, net | |||||||||||
Gift card sales | $ | $ | |||||||||
Miscellaneous | |||||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Total | $ | $ | |||||||||
Other Current Liabilities | |||||||||||
Non-qualified deferred compensation plan | $ | $ | |||||||||
Sales and other taxes | |||||||||||
Insurance-related | |||||||||||
Employee benefits | |||||||||||
Accrued interest | |||||||||||
Lease liabilities - current | |||||||||||
Miscellaneous | |||||||||||
Total | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Interest, net | |||||||||||||||||
Interest expense | $ | $ | $ | ||||||||||||||
Imputed interest on finance leases | |||||||||||||||||
Capitalized interest | ( | ( | ( | ||||||||||||||
Interest income | ( | ( | ( | ||||||||||||||
Total | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Cash paid during the fiscal year for: | |||||||||||||||||
Interest, net of amounts capitalized | $ | $ | $ | ||||||||||||||
Income taxes, net of refunds | $ | $ | $ | ||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Increase in land, buildings and equipment through accrued purchases | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Earnings from continuing operations | $ | $ | $ | ( | |||||||||||||
Loss from discontinued operations | ( | ( | ( | ||||||||||||||
Total consolidated income tax expense (benefit) | $ | $ | $ | ( |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Earnings from continuing operations before income taxes: | |||||||||||||||||
U.S. | $ | $ | $ | ||||||||||||||
Foreign | |||||||||||||||||
Earnings from continuing operations before income taxes | $ | $ | $ | ||||||||||||||
Income taxes: | |||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | $ | $ | ( | |||||||||||||
State and local | |||||||||||||||||
Foreign | ( | ||||||||||||||||
Total current | $ | $ | $ | ( | |||||||||||||
Deferred (principally U.S.): | |||||||||||||||||
Federal | $ | ( | $ | $ | |||||||||||||
State and local | ( | ||||||||||||||||
Total deferred | $ | ( | $ | ( | $ | ||||||||||||
Total income tax expense (benefit) | $ | $ | $ | ( |
Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
U.S. statutory rate | % | % | % | ||||||||||||||
State and local income taxes, net of federal tax benefits | |||||||||||||||||
Benefit of federal income tax credits | ( | ( | ( | ||||||||||||||
Stock-based compensation tax benefit | ( | ( | ( | ||||||||||||||
Federal net operating loss | ( | ||||||||||||||||
Other, net | ( | ( | |||||||||||||||
Effective income tax rate | % | % | ( | % |
(in millions) | |||||
Balances at May 29, 2022 | $ | ||||
Additions related to current-year tax positions | |||||
Reductions related to prior-year tax positions | |||||
Net reductions due to settlements with taxing authorities | ( | ||||
Reductions to tax positions due to statute expiration | ( | ||||
Balances at May 28, 2023 | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Interest recorded on unrecognized tax benefits | $ | $ | $ | ||||||||||||||
Interest recorded on income tax receivables | $ | ( | $ | ( | $ | ||||||||||||
Total (Benefit) Expense | $ | ( | $ | ( | $ |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Accrued liabilities | $ | $ | |||||||||
Compensation and employee benefits | |||||||||||
Lease liabilities | |||||||||||
Net operating loss, credit and charitable contribution carryforwards | |||||||||||
Other | |||||||||||
Gross deferred tax assets | $ | $ | |||||||||
Valuation allowance | ( | ( | |||||||||
Deferred tax assets, net of valuation allowance | $ | $ | |||||||||
Trademarks and other acquisition related intangibles | ( | ( | |||||||||
Buildings and equipment | ( | ( | |||||||||
Capitalized software and other assets | ( | ( | |||||||||
Lease assets | ( | ( | |||||||||
Other | ( | ( | |||||||||
Gross deferred tax liabilities | $ | ( | $ | ( | |||||||
Net deferred tax liabilities | $ | ( | $ | ( |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Defined benefit pension plans funding | $ | $ | $ | ||||||||||||||
Postretirement benefit plan funding |
Defined Benefit Plans | Postretirement Benefit Plan | ||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 28, 2023 | May 29, 2022 | |||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||
Benefit obligation at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | |||||||||||||||||||
Actuarial (gain) loss | ( | ( | ( | ||||||||||||||||||||
Benefit obligation at end of period | $ | $ | $ | $ |
Change in Plan Assets: | |||||||||||||||||||||||
Fair value at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Employer contributions | |||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | |||||||||||||||||||
Fair value at end of period | $ | $ | $ | $ |
Unfunded status at end of period | $ | ( | $ | ( | $ | ( | $ | ( |
Defined Benefit Plans | Postretirement Benefit Plan | ||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 28, 2023 | May 29, 2022 | |||||||||||||||||||
Components of the Consolidated Balance Sheets: | |||||||||||||||||||||||
Current liabilities | $ | $ | $ | $ | |||||||||||||||||||
Noncurrent liabilities | |||||||||||||||||||||||
Net amounts recognized | $ | $ | $ | $ | |||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: | |||||||||||||||||||||||
Net actuarial gain (loss) | ( | ( | ( | ||||||||||||||||||||
Net amounts recognized | $ | ( | $ | ( | $ | $ | ( |
(in millions) | May 28, 2023 | May 29, 2022 | |||||||||
Accumulated benefit obligation for all defined benefit plans | $ | $ | |||||||||
Pension plans with accumulated benefit obligations in excess of plan assets: | |||||||||||
Accumulated benefit obligation | |||||||||||
Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets |
Defined Benefit Plans | Postretirement Benefit Plan | ||||||||||||||||||||||
May 28, 2023 | May 29, 2022 | May 28, 2023 | May 29, 2022 | ||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations (1) | |||||||||||||||||||||||
Discount rate | % | % | % | % | |||||||||||||||||||
Weighted-average assumptions used to determine net expense (2) | |||||||||||||||||||||||
Discount rate | % | % | % | % |
Defined Benefit Plans | Postretirement Benefit Plan | ||||||||||||||||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||||||||||||||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service cost | ( | ||||||||||||||||||||||||||||||||||
Recognized net actuarial loss | |||||||||||||||||||||||||||||||||||
Net pension and postretirement cost (benefit) | $ | $ | $ | $ | $ | $ |
(in millions) | Defined Benefit Plan | Postretirement Benefit Plan | ||||||||||||
2024 | $ | $ | ||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
2029-2033 |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Stock options | $ | $ | $ | ||||||||||||||
Restricted stock units | |||||||||||||||||
Darden stock units | |||||||||||||||||
Equity-settled performance-based restricted stock units | |||||||||||||||||
Employee stock purchase plan | |||||||||||||||||
Director compensation program/other | |||||||||||||||||
Total | $ | $ | $ |
Fiscal Year Ended | |||||||||||||||||
(in millions) | May 28, 2023 | May 29, 2022 | May 30, 2021 | ||||||||||||||
Income tax benefits | $ | $ | $ |
Granted in Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
Weighted-average fair value | $ | $ | $ | ||||||||||||||
Dividend yield | % | % | % | ||||||||||||||
Expected volatility of stock | % | % | % | ||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Expected option life (in years) | |||||||||||||||||
Weighted-average exercise price per share | $ | $ | $ |
Options (in millions) | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Life (Yrs) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
Outstanding beginning of period | $ | $ | |||||||||||||||||||||
Options granted | |||||||||||||||||||||||
Options exercised | ( | ||||||||||||||||||||||
Options canceled | |||||||||||||||||||||||
Outstanding end of period | $ | $ | |||||||||||||||||||||
Exercisable | $ | $ |
Shares (in millions) | Weighted-Average Grant Date Fair Value Per Share | ||||||||||
Outstanding beginning of period | $ | ||||||||||
Shares granted | |||||||||||
Shares vested | ( | ||||||||||
Shares canceled | |||||||||||
Outstanding end of period | $ |
(All units settled in cash) | Units (in millions) | Weighted-Average Fair Value Per Unit | |||||||||
Outstanding beginning of period | $ | ||||||||||
Units granted | |||||||||||
Units vested | ( | ||||||||||
Units canceled | ( | ||||||||||
Outstanding end of period | $ |
Granted in Fiscal Year Ended | |||||||||||||||||
May 28, 2023 | May 29, 2022 | May 30, 2021 | |||||||||||||||
Dividend yield (1) | % | % | % | ||||||||||||||
Expected volatility of stock | % | % | % | ||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Expected option life (in years) | |||||||||||||||||
Weighted-average grant date fair value per unit | $ | $ | $ |
Units (in millions) | Weighted-Average Grant Date Fair Value Per Unit | ||||||||||
Outstanding beginning of period | $ | ||||||||||
Units granted | |||||||||||
Units granted performance impact | ( | ||||||||||
Units vested | ( | ||||||||||
Units canceled | |||||||||||
Outstanding end of period | $ |
(a) | Documents filed as part of this report: | ||||
1. Financial Statements: | |||||
All financial statements. See Index to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K. | |||||
2. Financial Statement Schedules: | |||||
Not applicable. | |||||
3. Exhibits: |
Date: | July 21, 2023 | DARDEN RESTAURANTS, INC. | |||||||||||||||
By: | /s/ Ricardo Cardenas | ||||||||||||||||
Ricardo Cardenas, President and Chief Executive Officer |
Signature | Title | Date | ||||||||||||
/s/ Ricardo Cardenas | Director, President and Chief Executive Officer (Principal executive officer) | July 21, 2023 | ||||||||||||
Ricardo Cardenas | ||||||||||||||
/s/ Rajesh Vennam | Senior Vice President, Chief Financial Officer (Principal financial officer) | July 21, 2023 | ||||||||||||
Rajesh Vennam | ||||||||||||||
/s/ John W. Madonna | Senior Vice President, Corporate Controller (Principal accounting officer) | July 21, 2023 | ||||||||||||
John W. Madonna | ||||||||||||||
/s/ Margaret Shan Atkins* | Director | |||||||||||||
Margaret Shan Atkins | ||||||||||||||
/s/ Juliana L. Chugg* | Director | |||||||||||||
Juliana L. Chugg | ||||||||||||||
/s/ James P. Fogarty* | Director | |||||||||||||
James P. Fogarty | ||||||||||||||
/s/ Cynthia T. Jamison* | Director | |||||||||||||
Cynthia T. Jamison | ||||||||||||||
/s/ Eugene I. Lee, Jr.* | Director and Chairman | |||||||||||||
Eugene I. Lee, Jr. | ||||||||||||||
/s/ Nana Mensah* | Director | |||||||||||||
Nana Mensah | ||||||||||||||
/s/ William S. Simon* | Director | |||||||||||||
William S. Simon | ||||||||||||||
/s/ Charles M. Sonsteby* | Director | |||||||||||||
Charles M. Sonsteby | ||||||||||||||
/s/ Timothy J. Wilmott* | Director | |||||||||||||
Timothy J. Wilmott | ||||||||||||||
*By: | /s/ Anthony G. Morrow | ||||||||||
Anthony G. Morrow, Attorney-In-Fact | |||||||||||
July 21, 2023 |
EXHIBIT INDEX | ||||||||
Exhibit Number | Title | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
*10.1 | ||||||||
*10.2 | ||||||||
*10.3 | ||||||||
*10.4 | ||||||||
*10.5 | ||||||||
*10.6 | ||||||||
*10.7 | ||||||||
*10.8 | ||||||||
*10.9 | ||||||||
*10.10 | ||||||||
*10.11 | ||||||||
*10.12 | ||||||||
*10.13 | ||||||||
*10.14 | ||||||||
*10.15 | ||||||||
*10.16 | ||||||||
*10.17 | ||||||||
*10.18 | ||||||||
*10.19 | ||||||||
*10.20 | ||||||||
*10.21 | ||||||||
*10.22 | ||||||||
*10.23 | ||||||||
*10.24 | ||||||||
*10.25 | ||||||||
*10.26 | ||||||||
*10.27 | ||||||||
*10.28 | ||||||||
*10.29 | ||||||||
*10.30 | ||||||||
*10.31 | ||||||||
*10.32 | ||||||||
*10.33 | ||||||||
*10.34 | ||||||||
*10.35 | ||||||||
*10.36 | ||||||||
10.37 | ||||||||
*10.38 | ||||||||
10.39 | ||||||||
10.40 | ||||||||
10.41 | ||||||||
21 | ||||||||
23 | ||||||||
24 | ||||||||
31(a) | ||||||||
31(b) | ||||||||
32(a) | ||||||||
32(b) | ||||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Schema Document |
101.CAL | XBRL Calculation Linkbase Document | |||||||
101.DEF | XBRL Definition Linkbase Document | |||||||
101.LAB | XBRL Label Linkbase Document | |||||||
101.PRE | XBRL Presentation Linkbase Document |
By: /s/ Margaret Shân Atkins Margaret Shân Atkins | By: /s/ Nana Mensah Nana Mensah | ||||
By: /s/ Juliana L. Chugg Juliana L. Chugg | By: /s/ William S. Simon William S. Simon | ||||
By: /s/ James P. Fogarty James P. Fogarty | By: /s/ Charles M. Sonsteby Charles M. Sonsteby | ||||
By: /s/ Cynthia T. Jamison Cynthia T. Jamison | By: /s/ Timothy J. Wilmott Timothy J. Wilmott | ||||
By: /s/ Eugene I. Lee, Jr. Eugene I. Lee, Jr. |
1 | I have reviewed this Annual Report on Form 10-K of Darden Restaurants, Inc.; | |||||||
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4 | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of this annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5 | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Ricardo Cardenas | ||
Ricardo Cardenas | ||
President and Chief Executive Officer | ||
July 21, 2023 |
1 | I have reviewed this Annual Report on Form 10-K of Darden Restaurants, Inc.; | |||||||
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||
4 | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of this annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |||||||
5 | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): | |||||||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |||||||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Rajesh Vennam | ||
Rajesh Vennam | ||
Senior Vice President, Chief Financial Officer | ||
July 21, 2023 |
1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Ricardo Cardenas | ||
Ricardo Cardenas | ||
President and Chief Executive Officer | ||
July 21, 2023 |
1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Rajesh Vennam | ||
Rajesh Vennam | ||
Senior Vice President, Chief Financial Officer | ||
July 21, 2023 |
"CK[.E3C>W+=J*3;5W9MZM7=NX4445J>Z%%%% !1110 4444 %%%% !1110
M 4444 %%%% !6/X'_P"01+_U^S?^A5L5C^!_^01+_P!?LW_H5 &Q1110 444
M4 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !117B
M?_!1G]LK1_\ @GU^Q)\0_P!L36O" %C>*.',OJ>SQ&+IQG_ "\\>9^D
M4^9_)'T37SI_P5D_Y1_>/_\ N%?^G6SIO_#4G[9_CKY/A/\ L$:E8P/]S4_'
MGBFVT_R_3=; &0_@>*\7_P""A6D_M]ZG^R!XO\1_';Q9\.-,\-P_V>;SPYX2
ML;J:>X!U"V6,-/<*R%')3@A,=Z^NX0X:Q6#XLR^IB:]>D^7VL)R=JD=
M.6FYM-[+FY==VEJ?'<9<487&<(9C3PM"M-2H5ES>RG""O3EJY5%!-+=\O-IL
MF]#\R****_NX_@$*_:'_ ()-_P#*/[P!_P!Q7_TZWE?B]7[0_P#!)O\ Y1_>
M /\ N*_^G6\K\*^D'_R1F'_["(?^FZI^^?1T_P"2VQ'_ S_P#3M$^BZ***
M_CP_M *Y7XT_%KP[\$OAUJ'Q"\29D2U0+:6<9_>7EPW$<"#NS-Q[#)Z UU+,
MJ*7=@ !DDG@"O O!2M^UG\^%JWJF3P!X%O7@\)PL/W>K:FO$E]C^)(^B'U
MP1@[Q7SO$.:8G"4J>$P5GB:[<:=]5&WQ5)+^6FM7_-)QAO)'#C<14I15*E_$
MGI'R[R?E%:^;LNIU7[,'PE\1>$]*U#XJ?%(";QQXRF6\UQR/^/*/'[FR3/W5
MC7 (]>,D*#7JE%%>CE.68;)\OAA*%[1W;U */%OQ \)_&?P[;^)?VM-/5KQO=7%Y)%?P?:+FX^V:
MS:3,Q4-LFLRL6U)>-E?7O_!/W_@CG^T-^S+_ ,$^OC3_ ,$[/C;\9?"FK:+\
M7I/$=P/&GA)+NWO=)FU:QCM)$%K,A29%*&0'SD/)0@@[AQ'C_P#X(S?\%+_C
M/_P37\%?L(_$[]L7X4V[_";4] ;X?3:!X(O%AU&VTJ55MVU6>65G+);J%6.V
MBBRZ R2R;C@ U?\ @MG\*](_9$_:6^"?_!8*ST_4KSP;X*\=6ND?'KPS'?7#
MZ?B22UE*3TC%
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MV\BS
?Q/I;
KZ+8WZ2NMYJ%A'>%E
MB545G6!II(5W&1!M;;]2_'OXV^&?V=_A5K'Q=\7>'?$>JV&C6
#?!&J$_"G1H7T^V@^T!"C:Y=QR2DO=D,Z01GY;:-F8;I9"T?Z?T4
M?*?@7]M?]M_Q#^QWX\_:F\1_\$U_$FF^)M%U01>"_@E-XB@77M8LHS;K-=23
M[3#&Y\RX=(%5F*VH 9VF55Y#XN:O\0O^"O/[/5M^S/JG[&WQ+^&/@WQ/JVE7
M/Q,U3XM:3;:9/:V%G?6]]+865LL\DUS
*%='4\,I4D$'@@U\._\
M!,7]H?P[_P $8?C=^U!_P2V_:(UJZB\&?#"UOOBG\$YIW+RZAX8N/WDNGV^[
M_6S)*T2*BY:2=KK XK[U_;,^ O[4'QP^*?PA\4?!R\\"V.D?"[XC1^+KI?$=
M]>&YUAQIE_IS6:B& K;+Y>H2L)
%M.L[O45B)L[;4+U[>&1^P>5(Y&0>X1C[5\
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MU3Q1XM^('A/XS^';?Q+^UIIZM8P>-[JXO)(K^#[1*%='4\,I4D$'@@U]-U\[_MF? 7]J#XX?%/X0^*/@Y>>!;'2/A=\1H_%
MUTOB.^O#
Audit Information |
12 Months Ended |
---|---|
May 28, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Orlando, FL |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF EARNINGS (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Income Statement [Abstract] | |||
Tax expense (benefit) of discontinued operations | $ 0.8 | $ 0.2 | $ 3.2 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 981.9 | $ 952.8 | $ 629.3 |
Foreign currency adjustment | (0.3) | (0.4) | 0.7 |
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $(1.5), $0.2 and $0.4, respectively | 4.3 | (8.3) | 16.5 |
Net unamortized gain (loss) arising during period, including amortization of unrecognized net actuarial loss, net of taxes of $0.4, $0.9 and $1.5, respectively | 1.1 | 2.6 | 4.6 |
Other comprehensive income (loss) | 5.1 | (6.1) | 21.8 |
Total comprehensive income | $ 987.0 | $ 946.7 | $ 651.1 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | |||
Change in fair value of derivatives and amortization of unrecognized gain (loss) on derivatives, tax | $ (1.5) | $ 0.2 | $ 0.4 |
Amortization of unrecognized net actuarial (loss) gain, tax | $ 0.4 | $ 0.9 | $ 1.5 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 500,000,000.0 | 500,000,000.0 |
Common stock, issued (in shares) | 121,100,000 | 123,900,000 |
Common stock, outstanding (in shares) | 121,100,000 | 123,900,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 25,000,000.0 | 25,000,000.0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 4.84 | $ 4.40 | $ 1.55 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation 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®, Cheddar’s Scratch Kitchen®, Yard House®, The Capital Grille®, Seasons 52®, Bahama Breeze®, Eddie V’s Prime Seafood® and The Capital Burger® 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 2 joint venture restaurants managed by us and 34 franchised restaurants. We also have 35 franchised restaurants in operation located in Latin America, the Caribbean, Asia, and the Middle East. All significant intercompany balances and transactions have been eliminated in consolidation. On June 14, 2023, we completed our acquisition of Ruth’s Hospitality Group, Inc., a Delaware corporation (Ruth’s), for $21.50 per share in cash. Ruth’s is the owner, operator and franchisor of Ruth’s Chris Steak House restaurants. As the acquisition was subsequent to our fiscal year ended on May 28, 2023, there was no impact to our financial statements or operations for fiscal year 2023. The accompanying consolidated financial statements do not include any results of Ruth’s Chris Steak House. For fiscal 2023, 2022 and 2021, all gains and losses on disposition, impairment charges and disposal costs, along with the sales, costs and expenses and income taxes attributable to discontinued locations, have been aggregated in a single caption entitled “Losses from discontinued operations, net of tax benefit” in our consolidated statements of earnings for all periods presented. COVID-19 Pandemic and Other Impacts to our Operating Environment During fiscal 2022, increases in the number of cases of COVID-19 throughout the United States including the Omicron variant which significantly impacted our restaurants in the third quarter, subjected some of our restaurants to COVID-19-related restrictions such as mask and/or vaccine requirements for team members, guests or both. Along with COVID-19, our operating results were impacted by geopolitical and other macroeconomic events, leading to higher than usual inflation on wages and other cost of goods sold; these events further impacted the availability of team members needed to staff our restaurants and caused additional disruptions in our product supply chain. The ongoing efforts to recover from the effects of the COVID-19 pandemic and its variants, along with other geopolitical and macroeconomic events, could impact our restaurants through wage inflation, staffing challenges, product cost inflation and disruptions in the supply chain that impact our restaurants’ ability to obtain the products needed to support their operations. Unless otherwise noted, amounts and disclosures throughout these notes to consolidated financial statements relate to our continuing operations. We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. Fiscal Year We operate on a 52/53-week fiscal year, which ends on the last Sunday in May. Fiscal 2023, which ended May 28, 2023, consisted of 52 weeks. Fiscal 2022, which ended May 29, 2022, consisted of 52 weeks and fiscal 2021, which ended May 30, 2021, consisted of 52 weeks. Use of Estimates We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP). 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 bank deposits 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:
As of May 28, 2023, and May 29, 2022, 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. We had restricted cash of $48.4 million and $51.5 million as of May 28, 2023 and May 29, 2022, respectively, which represents cash held as security for a standby letter of credit. Restricted cash is included in Prepaid Expenses and Other Current Assets on the balance sheet. See Note 15, Commitments and Contingencies. 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 11 for additional information. Inventories Inventories consist of food and beverages and are valued at the lower of weighted-average cost or net realizable value. 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 3 to 30 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 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 20 years also using the straight-line method. See Note 4 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 net 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:
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 1 to 10 years. The cost of capitalized software and related accumulated amortization was as follows:
We have other definite-lived intangible assets, including assets related to the value of reacquired franchise rights resulting from our acquisitions that are included as a component of other assets and definite-lived intangible liabilities related to the value of below-market agreements 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:
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:
Based on the net book values of our definite-lived intangible assets and liabilities at May 28, 2023, we expect amortization of capitalized software and other definite-lived intangible assets will be approximately $22.9 million annually for fiscal 2024 through 2028. 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 annually or more frequently if 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 Intangible Assets Our goodwill and trademark balances are allocated as follows:
We have nine reporting units, six of which have goodwill and seven of which have trademarks. Goodwill and trademarks are not subject to amortization and goodwill has been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. 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. 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. We estimate the fair value of each reporting unit using the best information available, including market information (also referred to as the market approach) and discounted cash flow projections (also referred to as the income approach). A market approach estimates fair value by applying sales or cash flow multiples to the reporting unit’s operating performance. The multiples are derived from observable market data of comparable publicly traded companies with similar operating and investment characteristics of the reporting units. The income approach uses a reporting unit’s projection of estimated operating cash flows which are based on a combination of historical and current trends, organic growth expectations, and residual growth rate assumptions. These cash flows are discounted using a weighted-average cost of capital (WACC) that reflects current market conditions. We recognize a goodwill impairment loss when the fair value of the reporting unit is less than its carrying value. We estimate the fair value of trademarks using the relief-from-royalty method, which requires assumptions related to projected sales from the reporting unit’s projection of estimated operating cash flows; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate based on an adjusted estimated WACC for each business unit. We recognize an impairment loss when the estimated fair value of the trademark is less than its carrying value. We performed our annual impairment test of our goodwill and trademarks as of February 27, 2023 which was the first day of our fiscal 2023 fourth quarter. As of February 27, 2023, no impairment of goodwill or trademarks was indicated based on our testing. Impairment or Disposal of Long-Lived Assets Land, buildings and equipment, operating lease right-of-use assets 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 recognized impairment 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, and are included in assets held for sale on our consolidated balance sheets when certain criteria are met. These criteria include, among other factors, 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. See Note 3 for additional information. For restaurants operated under non-cancellable leases, on the date we commit to a plan to either abandon the related right-of-use (ROU) asset or sublease the underlying asset, we evaluate the ROU asset for potential impairment and determine the go-forward accounting based on the requirements in FASB ASC Topic 842, Leases. Insurance Accruals Through the use of insurance program deductibles and self-insurance, we retain a significant portion of expected losses under our workers’ compensation 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. Revenue is presented net of sales tax. Sales taxes collected from customers are included in other accrued taxes on our consolidated balance sheets until the taxes are remitted to governmental authorities. Franchise royalties, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Revenue from area development and franchise fees are recognized as the performance obligations are satisfied over the term of the franchise agreement, which is generally 10 years. Advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Additionally, franchisee purchases of our inventory through our distribution network are recognized as revenue in the period the purchases are made. 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 primarily 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 12 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 prospectively to gift card redemptions. Discounts for gift cards sold by third parties are recorded to unearned revenues and are recognized over a period that approximates redemption patterns. 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. For certain contracts, 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 income tax expense 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. FASB 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 12 for additional information. 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 and commodities derivatives to manage interest rate, compensation and commodities pricing risks inherent in our business operations. Our use of derivative instruments is currently limited to interest rate hedges, equity forward contracts and commodity swaps. 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 FASB ASC Topic 815, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss), net of tax. These changes in fair value will be reclassified into earnings at the time of the forecasted transaction. Ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period in which it occurs. To the extent our derivatives are effective in mitigating changes in fair value, and otherwise meet the fair value hedge accounting criteria required by FASB ASC Topic 815, gains and losses in the derivatives’ fair value are included in current earnings, as are the gains and losses of the related hedged item. To the extent the hedge accounting criteria are not met, the derivative contracts are utilized as economic hedges, and changes in the fair value of such contracts are recorded currently in earnings in the period in which they occur. Cash flows related to derivatives are included in operating activities. See Note 7 for additional information. Leases The majority of our restaurant locations, as well as our restaurant support center, are subject to a lease. We evaluate our leases at the commencement of the lease to determine the classification as an operating or finance lease. Upon adoption of FASB ASC Topic 842, we recognized operating and finance lease liabilities based on the present value of minimum lease payments over the remaining expected lease term and corresponding right-of-use assets. We recognize lease expense related to operating leases on a straight-line basis. Amortization expense and interest expense related to finance leases are included in depreciation and amortization and interest, net, respectively, in our consolidated statements of earnings. Sale-leasebacks are transactions through which we sell assets (such as restaurant properties) at fair value and subsequently lease them back. The resulting leases qualify and are accounted for as operating leases. Failed sale-leaseback transactions are generally classified as finance leases and result in retention of the “sold” assets within land, buildings and equipment with a finance lease liability 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 lease expense on a straight-line basis for operating leases 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 lease 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 lease payments. At lease inception, we include option periods that we are reasonably certain to exercise as failure to renew the lease would impose an economic penalty either from the loss of our investment in leasehold improvements or future cash flows from operating the restaurant. The consolidated financial statements reflect the same lease term for amortizing leasehold improvements as we use to determine finance versus operating lease classifications. Variable lease 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. Landlord allowances are recorded as an adjustment to the right-of-use assets. Gains and losses on sale-leaseback transactions are recognized immediately. We elected the practical expedient to not separate lease and non-lease components for real estate leases entered into after adoption. See Note 10 for additional information. Pre-Opening Expenses Non-capital expenditures associated with opening new restaurants are expensed as incurred. These costs are reported as restaurant expenses in our consolidated statements of earnings. Advertising Production costs of commercials are expensed in the fiscal period the advertising is first aired while the costs of programming and other advertising, promotion and marketing programs are expensed as incurred. These costs are reported as marketing expenses in 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, net of estimated forfeitures, 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. The dividend yield assumes reinvestment of dividends. 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 performance measurement period for outstanding awards. See Note 14 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 units 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:
Stock options, restricted stock units and equity-settled performance stock units excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows:
Foreign Currency The Canadian dollar is the functional currency for our Canadian restaurant operations. 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 gains (losses) were $4.5 million and $4.8 million at May 28, 2023 and May 29, 2022, respectively. Net gains (losses) from foreign currency transactions recognized in our consolidated statements of earnings were $0.0 million, $0.0 million and $0.6 million for fiscal 2023, 2022 and 2021, respectively. Recently Adopted Accounting Standards In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires annual disclosures that increase the transparency of transactions involving government grants, including (i) information about the nature of the transactions and related accounting policy used to account for the transactions; (ii) the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line; and (iii) significant terms and conditions of the transactions, including commitments and contingencies. The guidance is effective for annual periods beginning after December 15, 2021. The Company adopted this guidance in the first quarter of fiscal 2023. The adoption did not have a material impact on our financial statements.
|
REVENUE RECOGNITION |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets is comprised of the following:
The following table presents a rollforward of deferred gift card revenue:
|
IMPAIRMENTS AND DISPOSALS OF ASSETS, NET |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
IMPAIRMENTS AND DISPOSALS 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:
Restaurant impairments for fiscal 2023 were primarily related to (i) one underperforming restaurant whose projected cash flows were not sufficient to cover its respective carrying values and (ii) four restaurant closures. Restaurant impairments for fiscal 2022 were primarily related to one underperforming restaurant whose projected cash flows were not sufficient to cover its respective carrying values and two underperforming restaurants that were permanently closed during 2022. Restaurant impairments for fiscal 2021 were primarily related to four underperforming restaurants. Disposal gains for fiscal 2023, 2022 and 2021 are primarily related to sale of properties, sale-leasebacks, disposal of closed locations, and the sale of liquor licenses. Other impacts for fiscal 2023 were primarily related to cancelled projects. Other impacts for fiscal 2022 were primarily related to the termination of lease liabilities in excess of the related right-of-use assets. Other impairment charges for fiscal 2021 were primarily related to software and lease right-of-use asset impairments. 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 (see Note 8). 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, BUILDING AND EQUIPMENT, NET |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LAND, BUILDING AND EQUIPMENT, NET | LAND, BUILDINGS AND EQUIPMENT, NET The components of land, buildings and equipment, net, are as follows:
|
SEGMENT INFORMATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s and The Capital Burger 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 Cheddar’s Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants in the U.S and results from our franchise operations. 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). Non-cash lease-related expenses from our operating segments are allocated to the corporate level for restaurant expenses (which is a component of segment profit) and depreciation and amortization. Additionally, our lease-related right-of-use assets are not managed or evaluated at the operating segment level, but rather at the corporate level. For fiscal 2023, 2022, and 2021, restaurant and marketing expenses included approximately $0.2 million, $9.0 million, and $28.9 million, respectively, of costs net of retention credits associated with the CARES Act, related to special team member and manager bonuses as well as emergency and furlough pay for restaurant employees due to COVID-19, reflected at the corporate level as they are costs for which our operating segments are not being evaluated. In the first quarter of fiscal 2022, we changed our internal management reporting to include The Capital Burger in the Other Business segment. Previously, The Capital Burger was included in the Fine Dining segment due to its adjacency with The Capital Grille brand and overall immateriality. Fiscal 2021 figures have been restated for comparability. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:
Reconciliation of segment profit to earnings from continuing operations before income taxes:
|
DEBT |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The components of long-term debt are as follows:
The aggregate contractual maturities of long-term debt for each of the five fiscal years subsequent to May 28, 2023, and thereafter are as follows:
On September 10, 2021, we entered into a $1 billion 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. The Revolving Credit Agreement replaced our prior $750.0 million revolving credit agreement, dated as of October 27, 2017 and amended as of March 25, 2020. As of May 28, 2023, we had no outstanding balances. The Revolving Credit Agreement matures on September 10, 2026, and the proceeds may be used for working capital and capital expenditures, the refinancing of certain indebtedness, certain acquisitions and general corporate purposes. During fiscal year 2023, loans under the Revolving Credit Agreement bore 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 Eurodollar Rate plus 1.000 percent) plus the Applicable Margin. Assuming a “BBB” equivalent credit rating level, the Applicable Margin under the Revolving Credit Agreement would have been 1.000 percent for LIBOR loans and 0.000 percent for base rate loans. Subsequent to the end of fiscal year 2023, effective May 31, 2023, we entered into an amendment to the Revolving Credit Agreement. Pursuant to the terms of the amendment, the Company, the administrative agent and the lenders have agreed to replace the LIBOR-based interest rate applicable to borrowings under the Credit Agreement with a Term SOFR-based interest rate in advance of the cessation of LIBOR, and make certain other conforming changes. All other material terms and conditions of the Credit Agreement were unchanged. Effective May 31, 2023, loans under the Revolving Credit Agreement bear interest at a rate of (a)Term SOFR (which is defined, for the applicable interest period, as the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to the commencement of such interest period with a term equivalent to such interest period) plus a Term SOFR adjustment of 0.10 percent plus the relevant margin determined by reference to a ratings-based pricing grid (Applicable Margin), or (b) the base rate (which is defined as the highest of the BOA prime rate, the Federal Funds rate plus 0.500 percent, and the Term SOFR plus 1.00 percent) plus the relevant Applicable Margin. Assuming a “BBB” equivalent credit rating level, the Applicable Margin under the Revolving Credit Agreement will be 1.00 percent for Term SOFR loans and 0.000 percent for base rate loans. Also subsequent to the end of fiscal year 2023, on May 31, 2023, the Company entered into a senior unsecured $600 million 3-year Term Loan Credit Agreement (Term Loan Agreement) with Bank of America, N.A., as administrative agent, the lenders and other agents party thereto, the material terms of which are consistent with the Credit Agreement, as amended. The Term Loan Agreement provided for a single borrowing on any business day up to 90 days after May 31, 2023, and matures on the third anniversary of the funding date thereunder, June 14, 2023. We borrowed $600 million under the Term Loan Agreement to fund a portion of the consideration paid in connection with the acquisition of Ruth’s. The interest rate on our $42.8 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. As of May 28, 2023, no such adjustments are made to this rate.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as provided by FASB ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial derivatives to manage interest rate, commodity and compensation risks inherent in our business operations. Cash flows related to derivatives are included in operating activities. 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. 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. We designate commodity contracts and equity forward contracts as cash flow hedging instruments. Our interest rate swap agreements are designated as fair value hedges of the related debt. Further, we entered into equity forward contracts to hedge the risk of changes in future cash flows associated with recognized, employee-directed investments in our common 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 our common stock investments in the non-qualified deferred compensation plan. The notional and fair values of our derivative contracts are as follows:
(1)Derivative assets and liabilities are included in receivables, net, and other current liabilities, as applicable, on our consolidated balance sheets. (2)Designated and undesignated equity forwards extend through July 2026 and April 2027, respectively. (3)Commodity contracts extend through June 2024. The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows:
(1)Location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses. (2)Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses. (3)Location of the gain (loss) reclassified from AOCI to earnings is interest, net. The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows:
(1) Location of the gain (loss) recognized in earnings on derivatives and related hedged item is interest, net. (2) Hedged item in fair value hedge relationship is debt. The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows:
|
FAIR VALUE MEASUREMENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 28, 2023 and May 29, 2022:
(1)The fair value of our commodities futures, swaps and options is based on closing market prices of the contracts, inclusive of the risk of nonperformance. (2)The fair value of equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. (3)The fair value of our interest rate swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance. The carrying value and fair value of long-term debt, as of May 28, 2023, was $884.9 million and $857.0 million, respectively. The carrying value and fair value of long-term debt as of May 29, 2022, was $901.0 million and $896.9 million, 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, classified as Level 2 in the fair value hierarchy, is generally determined based on third-party market appraisals which includes market data for similar assets. As of May 28, 2023 and May 29, 2022, adjustments to the fair values of non-financial assets measured at fair value on a non-recurring basis, classified as Level 2, were not material. The fair value of non-financial assets measured at fair value on a non-recurring basis, classified as Level 3 in the fair value hierarchy, is determined based on appraisals, sales prices of comparable assets, or estimates of discounted future cash flows. As of May 28, 2023, long-lived assets held and used with a carrying amount of $10.0 million, primarily related to one underperforming restaurant, were determined to have a fair value of $8.4 million resulting in an impairment charge of $1.6 million. As of May 29, 2022, long-lived assets held and used with a carrying amount of $4.9 million, primarily related to one underperforming restaurant, were determined to have a fair value of $0.9 million resulting in an impairment charge of $4.0 million.
|
STOCKHOLDERS' EQUITY |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Share Repurchase Program All of the shares purchased during the fiscal year ended May 28, 2023 were purchased as part of our repurchase program authorized by our Board of Directors. On June 22, 2022, our Board of Directors authorized a share repurchase program under which we may repurchase up to $1.0 billion of our outstanding common stock. This repurchase program does not have an expiration and replaces the existing share repurchase authorization. Share Retirements As of May 28, 2023, of the 207.7 million cumulative shares repurchased under the current and previous authorizations, 196.4 million shares were retired and restored to authorized but unissued shares of common stock and there are no remaining treasury shares. 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. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), net of tax, are as follows:
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:
(1)Primarily included in food and beverage costs and restaurant expenses. See Note 7 for additional details. (2)Included in general and administrative expenses. See Note 7 for additional details. (3)Included in interest, net, on our consolidated statements of earnings. (4)Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of other (income) expense, net, restaurant labor expenses and general and administrative expenses. See Note 13 for additional details. (5)Included in the computation of net periodic benefit costs - other plans, which is a component of restaurant labor, and general and administrative expenses.
|
LEASES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 28, 2023 and May 29, 2022 are as follows:
The components of lease assets and liabilities on the consolidated balance sheet as of May 28, 2023 and May 29, 2022 are as follows:
Supplemental cash flow information related to leases for the fiscal years ended May 28, 2023 and May 29, 2022:
The weighted-average remaining lease terms and discount rates as of May 28, 2023 and May 29, 2022 are as follows:
(1)We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument. The annual maturities of our lease liabilities as of May 28, 2023 are as follows:
(1)Of the $5,463.5 million of total future operating lease commitments and $1,906.8 million of total future finance lease commitments, $2,376.5 million and $662.6 million, respectively, are non-cancelable. (2)Excludes approximately $107.6 million of net present value of lease payments related to 25 real estate leases signed, but not yet commenced.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 28, 2023 and May 29, 2022 are as follows:
The components of lease assets and liabilities on the consolidated balance sheet as of May 28, 2023 and May 29, 2022 are as follows:
Supplemental cash flow information related to leases for the fiscal years ended May 28, 2023 and May 29, 2022:
The weighted-average remaining lease terms and discount rates as of May 28, 2023 and May 29, 2022 are as follows:
(1)We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument. The annual maturities of our lease liabilities as of May 28, 2023 are as follows:
(1)Of the $5,463.5 million of total future operating lease commitments and $1,906.8 million of total future finance lease commitments, $2,376.5 million and $662.6 million, respectively, are non-cancelable. (2)Excludes approximately $107.6 million of net present value of lease payments related to 25 real estate leases signed, but not yet commenced.
|
ADDITIONAL FINANCIAL INFORMATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ADDITIONAL FINANCIAL INFORMATION | ADDITIONAL FINANCIAL INFORMATION The tables below provide additional financial information related to our consolidated financial statements: Balance Sheets
Statements of Earnings
Statements of Cash Flows
|
INCOME TAXES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Total income tax expense (benefit) was allocated as follows:
The components of earnings from continuing operations before income taxes and the provision for income taxes thereon are as follows:
The effective income tax rates for fiscal 2023 and 2022 for continuing operations were 12.2 percent and 12.7 percent, respectively. During fiscal 2023, we had income tax expense of $137.0 million on earnings before income tax of $1.12 billion compared to income tax expense of $138.8 million on earnings before income taxes of $1.09 billion in fiscal 2022. This change was primarily driven by the impact of federal tax credits. The Inflation Reduction Act (IRA) was enacted on August 16, 2022. The IRA includes provisions imposing a 1 percent excise tax on share repurchases that occur after December 31, 2022 and introduces a 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement income. The IRA excise tax and the CAMT are immaterial to our financial statements. 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:
As of May 28, 2023, we had estimated current prepaid state and federal income taxes of $12.8 million and $94.5 million, respectively, which is included on our accompanying consolidated balance sheets as prepaid income taxes and estimated current state and federal income taxes payable of $4.2 million and $3.6 million, respectively, which is included on our accompanying consolidated balance sheets as accrued income taxes. As of May 28, 2023, we had unrecognized tax benefits of $23.0 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 28, 2023, is $7.8 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. Of the $7.8 million, $5.7 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:
Interest included in income tax expense in our consolidated statements of earnings is as follows:
At May 28, 2023, we had $2.7 million accrued for the payment of interest associated with unrecognized tax benefits. For U.S. federal income tax purposes, we participate in the IRS’s 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 2022, and state and local, or non-U.S. income tax examinations by tax authorities for years before fiscal 2018. The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:
We have deferred tax assets of $33.2 million reflecting the benefit of state loss carryforwards, before federal benefit and valuation allowance, which expire at various dates between fiscal 2024 and fiscal 2042. We have deferred tax assets of $12.9 million of federal and $47.7 million state tax credits, before federal benefit and valuation allowance, which expire at various dates between fiscal 2024 and fiscal 2043. 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 28, 2023.
|
RETIREMENT PLANS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS Defined Benefit Plans and Postretirement Benefit Plan We sponsor a non-contributory postretirement benefit plan that provides health care benefits to certain eligible salaried retirees as a subsidy credit to a health care reimbursement account. This benefit is not impacted by future changes in health care cost trend rates. We also sponsor a supplemental defined benefit pension plan, which is an unfunded nonqualified plan separate from our terminated primary pension plan which was settled in fiscal 2020. The supplemental plan is frozen and therefore no longer accruing benefits for participants. Fundings related to the defined benefit pension plans and postretirement benefit plan, which are funded on a pay-as-you-go basis, were as follows:
We expect to contribute approximately $0.4 million to our remaining defined benefit pension plan and approximately $1.6 million to our postretirement benefit plan during fiscal 2024. 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 28, 2023 and May 29, 2022:
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):
The following is a summary of our accumulated and projected benefit obligations for our defined benefit plans:
The following table presents the weighted-average assumptions used to determine benefit obligations and net expense:
(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 Pri-2012 mortality tables and MP-2021 mortality improvement scale to measure the benefit obligations. Components of net periodic benefit cost included in earnings are as follows:
The amortization of the net actuarial loss component of our fiscal 2024 net periodic benefit cost for the remaining defined benefit plan and postretirement benefit plan is expected to be approximately $0.1 million and $0.0 million, respectively. The following benefit payments are expected to be paid between fiscal 2024 and fiscal 2033:
Defined Contribution Plan We have a defined contribution (401(k)) plan (Darden Savings Plan) covering most employees age 18 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 Darden Savings Plan also provides for a profit sharing contribution for eligible participants equal to 1.5 percent of the participant’s compensation. The Darden Savings Plan had net assets of $1.2 billion at May 28, 2023, and $1.1 billion at May 29, 2022. Expense recognized in fiscal 2023, 2022 and 2021 was $37.7 million, $49.0 million and $14.4 million, respectively. Employees classified as “highly compensated” under the IRC are not eligible to participate in the Darden Savings Plan. Instead, highly compensated employees are eligible to participate in a separate non-qualified deferred compensation (FlexComp) plan. The FlexComp 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 that participants would have received had they been eligible to participate in the Darden Savings Plan, as well as an additional retirement contribution amount. Amounts payable to highly compensated employees under the FlexComp plan totaled $252.4 million and $249.5 million at May 28, 2023 and May 29, 2022, respectively. These amounts are included in other current liabilities on our accompanying consolidated balance sheets.
|
STOCK-BASED COMPENSATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement, Noncash Expense [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 FASB 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, restricted stock, restricted stock units (RSUs), performance-based restricted stock units (PRSUs) and other stock-based awards such as Darden stock units to employees, consultants and non-employee directors. As of May 28, 2023, approximately 0.1 million shares may be issued under outstanding awards that were granted under the Prior Plans and may still vest and be exercised in accordance with their terms. Stock-based compensation expense included in continuing operations was as follows:
Excess income tax benefits related to the exercise of stock options and vesting of other equity-settled stock-based compensation recognized in income tax expense from continuing operations was as follows:
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:
The following table presents a summary of our stock option activity as of and for the year ended May 28, 2023:
The total intrinsic value of options exercised during fiscal 2023, 2022 and 2021 was $29.7 million, $41.5 million and $57.3 million, respectively. Cash received from option exercises during fiscal 2023, 2022 and 2021 was $24.2 million, $29.7 million and $36.6 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. As of May 28, 2023, there was $4.8 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 2.3 years. The total fair value of stock options that vested during fiscal 2023 was $6.3 million. Restricted stock and RSUs are granted at a value equal to the market price of our common stock on the date of grant, and are amortized over their service periods which generally range from to three years. Restrictions with regard to restricted stock and RSUs lapse at the end of their service periods at which time employees receive unrestricted shares of Darden stock. The following table presents a summary of our RSU activity as of and for the fiscal year ended May 28, 2023:
As of May 28, 2023, there was $6.7 million of unrecognized compensation cost related to unvested RSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of RSUs that vested during fiscal 2023, 2022 and 2021 was $6.6 million, $7.0 million and $10.6 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 typically range from to 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 enter into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested Darden stock units granted (see Note 7 for additional information). The following table presents a summary of our Darden stock unit activity as of and for the fiscal year ended May 28, 2023:
As of May 28, 2023, our total Darden stock unit liability was $79.2 million, including $22.9 million recorded in other current liabilities and $56.3 million recorded in other liabilities on our consolidated balance sheets. As of May 29, 2022, our total Darden stock unit liability was $55.5 million, including $17.6 million recorded in other current liabilities and $37.9 million recorded in other liabilities on our consolidated balance sheets. Based on the value of our common stock as of May 28, 2023, there was $34.5 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 2.1 years but the amount that vests is ultimately dependent on the value of Darden stock at the vesting date. The total fair value of Darden stock units that vested during fiscal 2023 was $19.3 million. Relative total shareholder return PRSUs are equity-settled awards that vest over the service period which ranges from to four years, and the number of units that actually vest is determined based on the achievement of performance criteria set forth in the award agreement. The awards vest based on the achievement of market-based targets, are measured based on estimated fair value as of the date of grant using a Monte Carlo simulation, and are amortized over the service period. Additionally, under special circumstances, Darden grants equity-settled PRSUs which are earned based on specific performance criteria. These PRSUs are measured based on a value equal to the market price of our common stock on the date of grant, and are amortized over the service periods which generally range from to six years. The weighted-average grant date fair value of equity-settled PRSUs and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows:
(1)Assumes a reinvestment of dividends. The following table presents a summary of our equity-settled PRSU activity as of and for the fiscal year ended May 28, 2023:
As of May 28, 2023, there was $9.4 million of unrecognized compensation cost related to unvested equity-settled PRSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 2.2 years. The total fair value of equity-settled PRSUs that vested during fiscal 2023 was $13.3 million. We maintain an Employee Stock Purchase Plan to provide eligible employees who have completed one year of service (excluding certain 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 6.2 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 2023, 2022 and 2021 was $11.2 million, $10.5 million and $9.6 million, respectively.
|
COMMITMENTS AND CONTINGENCIES |
12 Months Ended |
---|---|
May 28, 2023 | |
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 28, 2023 and May 29, 2022, we had $85.3 million and $104.8 million, respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. At May 28, 2023 and May 29, 2022, we had $15.2 million and $18.8 million, respectively, of surety bonds related to other payments. Most surety bonds are renewable annually. At May 28, 2023 and May 29, 2022, we had $82.0 million and $101.0 million, respectively, of guarantees associated with leased properties that have been assigned to third parties. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of the maximum potential payments discounted at our weighted-average cost of capital at May 28, 2023 and May 29, 2022, amounted to $68.4 million and $83.6 million, respectively. 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 2024 through fiscal 2034. 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.
|
OTHER SUBSEQUENT EVENT |
12 Months Ended |
---|---|
May 28, 2023 | |
Subsequent Events [Abstract] | |
OTHER SUBSEQUENT EVENT | OTHER SUBSEQUENT EVENTOn June 21, 2023, the Board of Directors declared a cash dividend of $1.31 per share to be paid August 1, 2023 to all shareholders of record as of the close of business on July 10, 2023. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended |
---|---|
May 28, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | For fiscal 2023, 2022 and 2021, all gains and losses on disposition, impairment charges and disposal costs, along with the sales, costs and expenses and income taxes attributable to discontinued locations, have been aggregated in a single caption entitled “Losses from discontinued operations, net of tax benefit” in our consolidated statements of earnings for all periods presented. |
COVID-19 Pandemic and Other Impacts to our Operating Environment | COVID-19 Pandemic and Other Impacts to our Operating Environment During fiscal 2022, increases in the number of cases of COVID-19 throughout the United States including the Omicron variant which significantly impacted our restaurants in the third quarter, subjected some of our restaurants to COVID-19-related restrictions such as mask and/or vaccine requirements for team members, guests or both. Along with COVID-19, our operating results were impacted by geopolitical and other macroeconomic events, leading to higher than usual inflation on wages and other cost of goods sold; these events further impacted the availability of team members needed to staff our restaurants and caused additional disruptions in our product supply chain. The ongoing efforts to recover from the effects of the COVID-19 pandemic and its variants, along with other geopolitical and macroeconomic events, could impact our restaurants through wage inflation, staffing challenges, product cost inflation and disruptions in the supply chain that impact our restaurants’ ability to obtain the products needed to support their operations.
|
Reclassification | Unless otherwise noted, amounts and disclosures throughout these notes to consolidated financial statements relate to our continuing operations. We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation. |
Fiscal Year | Fiscal Year We operate on a 52/53-week fiscal year, which ends on the last Sunday in May. Fiscal 2023, which ended May 28, 2023, consisted of 52 weeks. Fiscal 2022, which ended May 29, 2022, consisted of 52 weeks and fiscal 2021, which ended May 30, 2021, 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 (GAAP). 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 and Cash Equivalents Cash equivalents include highly liquid investments such as bank deposits 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 11 for additional information. |
Inventories | Inventories Inventories consist of food and beverages and are valued at the lower of weighted-average cost or net realizable value. |
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 3 to 30 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 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 20 years also using the straight-line method. See Note 4 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 net 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 1 to 10 years. We have other definite-lived intangible assets, including assets related to the value of reacquired franchise rights resulting from our acquisitions that are included as a component of other assets and definite-lived intangible liabilities related to the value of below-market agreements 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. |
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 annually or more frequently if 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 Intangible Assets | We have nine reporting units, six of which have goodwill and seven of which have trademarks. Goodwill and trademarks are not subject to amortization and goodwill has been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. 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. 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. We estimate the fair value of each reporting unit using the best information available, including market information (also referred to as the market approach) and discounted cash flow projections (also referred to as the income approach). A market approach estimates fair value by applying sales or cash flow multiples to the reporting unit’s operating performance. The multiples are derived from observable market data of comparable publicly traded companies with similar operating and investment characteristics of the reporting units. The income approach uses a reporting unit’s projection of estimated operating cash flows which are based on a combination of historical and current trends, organic growth expectations, and residual growth rate assumptions. These cash flows are discounted using a weighted-average cost of capital (WACC) that reflects current market conditions. We recognize a goodwill impairment loss when the fair value of the reporting unit is less than its carrying value. We estimate the fair value of trademarks using the relief-from-royalty method, which requires assumptions related to projected sales from the reporting unit’s projection of estimated operating cash flows; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate based on an adjusted estimated WACC for each business unit. We recognize an impairment loss when the estimated fair value of the trademark is less than its carrying value.
|
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Land, buildings and equipment, operating lease right-of-use assets 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 recognized impairment 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, and are included in assets held for sale on our consolidated balance sheets when certain criteria are met. These criteria include, among other factors, 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. See Note 3 for additional information. For restaurants operated under non-cancellable leases, on the date we commit to a plan to either abandon the related right-of-use (ROU) asset or sublease the underlying asset, we evaluate the ROU asset for potential impairment and determine the go-forward accounting based on the requirements in FASB ASC Topic 842, Leases.
|
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 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. Revenue is presented net of sales tax. Sales taxes collected from customers are included in other accrued taxes on our consolidated balance sheets until the taxes are remitted to governmental authorities. Franchise royalties, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Revenue from area development and franchise fees are recognized as the performance obligations are satisfied over the term of the franchise agreement, which is generally 10 years. Advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Additionally, franchisee purchases of our inventory through our distribution network are recognized as revenue in the period the purchases are made. 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 primarily 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 12 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 prospectively to gift card redemptions. Discounts for gift cards sold by third parties are recorded to unearned revenues and are recognized over a period that approximates redemption patterns.
|
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. For certain contracts, 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 income tax expense 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. FASB 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 12 for additional information.
|
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 and commodities derivatives to manage interest rate, compensation and commodities pricing risks inherent in our business operations. Our use of derivative instruments is currently limited to interest rate hedges, equity forward contracts and commodity swaps. 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 FASB ASC Topic 815, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss), net of tax. These changes in fair value will be reclassified into earnings at the time of the forecasted transaction. Ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period in which it occurs. To the extent our derivatives are effective in mitigating changes in fair value, and otherwise meet the fair value hedge accounting criteria required by FASB ASC Topic 815, gains and losses in the derivatives’ fair value are included in current earnings, as are the gains and losses of the related hedged item. To the extent the hedge accounting criteria are not met, the derivative contracts are utilized as economic hedges, and changes in the fair value of such contracts are recorded currently in earnings in the period in which they occur. Cash flows related to derivatives are included in operating activities. See Note 7 for additional information.
|
Leases | Leases The majority of our restaurant locations, as well as our restaurant support center, are subject to a lease. We evaluate our leases at the commencement of the lease to determine the classification as an operating or finance lease. Upon adoption of FASB ASC Topic 842, we recognized operating and finance lease liabilities based on the present value of minimum lease payments over the remaining expected lease term and corresponding right-of-use assets. We recognize lease expense related to operating leases on a straight-line basis. Amortization expense and interest expense related to finance leases are included in depreciation and amortization and interest, net, respectively, in our consolidated statements of earnings. Sale-leasebacks are transactions through which we sell assets (such as restaurant properties) at fair value and subsequently lease them back. The resulting leases qualify and are accounted for as operating leases. Failed sale-leaseback transactions are generally classified as finance leases and result in retention of the “sold” assets within land, buildings and equipment with a finance lease liability 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 lease expense on a straight-line basis for operating leases 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 lease 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 lease payments. At lease inception, we include option periods that we are reasonably certain to exercise as failure to renew the lease would impose an economic penalty either from the loss of our investment in leasehold improvements or future cash flows from operating the restaurant. The consolidated financial statements reflect the same lease term for amortizing leasehold improvements as we use to determine finance versus operating lease classifications. Variable lease 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. Landlord allowances are recorded as an adjustment to the right-of-use assets. Gains and losses on sale-leaseback transactions are recognized immediately. We elected the practical expedient to not separate lease and non-lease components for real estate leases entered into after adoption. See Note 10 for additional information.
|
Pre-Opening Expenses | Pre-Opening Expenses Non-capital expenditures associated with opening new restaurants are expensed as incurred. These costs are reported as restaurant expenses in our consolidated statements of earnings.
|
Advertising | Advertising Production costs of commercials are expensed in the fiscal period the advertising is first aired while the costs of programming and other advertising, promotion and marketing programs are expensed as incurred. These costs are reported as marketing expenses in 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, net of estimated forfeitures, 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. The dividend yield assumes reinvestment of dividends. 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 performance measurement period for outstanding awards. See Note 14 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 units 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. 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). |
Recently Adopted Accounting Standards and Application of New Accounting Standards | Recently Adopted Accounting Standards In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires annual disclosures that increase the transparency of transactions involving government grants, including (i) information about the nature of the transactions and related accounting policy used to account for the transactions; (ii) the line items on the balance sheet and income statement affected by these transactions including amounts applicable to each line; and (iii) significant terms and conditions of the transactions, including commitments and contingencies. The guidance is effective for annual periods beginning after December 15, 2021. The Company adopted this guidance in the first quarter of fiscal 2023. The adoption did not have a material impact on our financial statements.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The components of cash and cash equivalents are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation And Amortization Expense From Continuing Operations | Depreciation and amortization expense from continuing operations associated with buildings and equipment and losses on replacement of equipment were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Software Costs And Related Accumulated Amortization | The cost of capitalized software and related accumulated amortization was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs And Accumulated Amortization Of Acquired Definite-Lived Intangible Assets | The cost and related accumulated amortization was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Trademark Balances | Our goodwill and trademark balances are allocated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic And Diluted Earnings Per Common Share | The following table presents the computation of basic and diluted net earnings per common share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock And Options To Purchase Shares Of Common Stock Excluded From Calculation Of Diluted Earnings Per Share | Stock options, restricted stock units and equity-settled performance stock units excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows:
|
REVENUE RECOGNITION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer | Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets is comprised of the following:
The following table presents a rollforward of deferred gift card revenue:
|
IMPAIRMENTS AND DISPOSALS OF ASSETS, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
LAND, BUILDING AND EQUIPMENT, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Land, Buildings And Equipment, Net | The components of land, buildings and equipment, net, are as follows:
|
SEGMENT INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliation of segment profit to earnings from continuing operations before income taxes:
|
DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-Term Debt | The components of long-term debt are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 28, 2023, and thereafter are as follows:
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional and Fair Values of Derivative Contracts | The notional and fair values of our derivative contracts are as follows:
(1)Derivative assets and liabilities are included in receivables, net, and other current liabilities, as applicable, on our consolidated balance sheets. (2)Designated and undesignated equity forwards extend through July 2026 and April 2027, respectively. (3)Commodity contracts extend through June 2024.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)Location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses. (2)Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses. (3)Location of the gain (loss) reclassified from AOCI to earnings is interest, net. The effects of derivative instruments in fair value hedging relationships in the consolidated statements of earnings are as follows:
(1) Location of the gain (loss) recognized in earnings on derivatives and related hedged item is interest, net. (2) Hedged item in fair value hedge relationship is debt. The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows:
|
FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 28, 2023 and May 29, 2022:
(1)The fair value of our commodities futures, swaps and options is based on closing market prices of the contracts, inclusive of the risk of nonperformance. (2)The fair value of equity forwards is based on the closing market value of Darden stock, inclusive of the risk of nonperformance. (3)The fair value of our interest rate swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance.
|
STOCKHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), net of tax, are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)Primarily included in food and beverage costs and restaurant expenses. See Note 7 for additional details. (2)Included in general and administrative expenses. See Note 7 for additional details. (3)Included in interest, net, on our consolidated statements of earnings. (4)Included in the computation of net periodic benefit costs - pension and postretirement plans, which is a component of other (income) expense, net, restaurant labor expenses and general and administrative expenses. See Note 13 for additional details. (5)Included in the computation of net periodic benefit costs - other plans, which is a component of restaurant labor, and general and administrative expenses.
|
LEASES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expenses and Cash Flow Information | The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 28, 2023 and May 29, 2022 are as follows:
Supplemental cash flow information related to leases for the fiscal years ended May 28, 2023 and May 29, 2022:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Assets and Liabilities | The components of lease assets and liabilities on the consolidated balance sheet as of May 28, 2023 and May 29, 2022 are as follows:
The weighted-average remaining lease terms and discount rates as of May 28, 2023 and May 29, 2022 are as follows:
(1)We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Operating Lease Liabilities | The annual maturities of our lease liabilities as of May 28, 2023 are as follows:
(1)Of the $5,463.5 million of total future operating lease commitments and $1,906.8 million of total future finance lease commitments, $2,376.5 million and $662.6 million, respectively, are non-cancelable. (2)Excludes approximately $107.6 million of net present value of lease payments related to 25 real estate leases signed, but not yet commenced.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Financing Lease Liabilities | The annual maturities of our lease liabilities as of May 28, 2023 are as follows:
(1)Of the $5,463.5 million of total future operating lease commitments and $1,906.8 million of total future finance lease commitments, $2,376.5 million and $662.6 million, respectively, are non-cancelable. (2)Excludes approximately $107.6 million of net present value of lease payments related to 25 real estate leases signed, but not yet commenced.
|
ADDITIONAL FINANCIAL INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables From Various Parties | Balance Sheets
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Other Current Liabilities | Balance Sheets
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Interest | Statements of Earnings
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | Statements of Cash Flows
|
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation Of Total Income Tax Expense | Total income tax expense (benefit) was allocated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense On Income Tax Expense (Benefits) | Interest included in income tax expense in our consolidated statements of earnings is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
RETIREMENT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funding Of Defined Benefit Pension Plans And Postretirement Benefit Plans | Fundings related to the defined benefit pension plans and postretirement benefit plan, which are funded on a pay-as-you-go basis, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 28, 2023 and May 29, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change In Plan Assets | 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 28, 2023 and May 29, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of The Plan's Funded Status | 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 28, 2023 and May 29, 2022:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used | The following table presents the weighted-average assumptions used to determine benefit obligations and net expense:
(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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Benefit Payments | The following benefit payments are expected to be paid between fiscal 2024 and fiscal 2033:
|
STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 28, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Stock-Based Compensation Expense | Stock-based compensation expense included in continuing operations was as follows:
Excess income tax benefits related to the exercise of stock options and vesting of other equity-settled stock-based compensation recognized in income tax expense from continuing operations was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Fair Value and Related Assumptions for 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:
The weighted-average grant date fair value of equity-settled PRSUs and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows:
(1)Assumes a reinvestment of dividends.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Stock Option Activity | The following table presents a summary of our stock option activity as of and for the year ended May 28, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Restricted Stock and RSU Activity | The following table presents a summary of our RSU activity as of and for the fiscal year ended May 28, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 28, 2023:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Performance Stock Unit Activity | The following table presents a summary of our equity-settled PRSU activity as of and for the fiscal year ended May 28, 2023:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
---|---|---|---|
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 367.8 | $ 420.6 | $ 1,214.7 |
Short-term investments | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 185.6 | 246.0 | |
Credit card receivables | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 142.3 | 133.1 | |
Depository accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 39.9 | $ 41.5 |
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 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization on buildings and equipment | $ 387.8 | $ 368.4 | $ 350.9 |
Losses on replacement of equipment | 2.2 | 2.1 | 2.6 |
Buildings and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization on buildings and equipment | $ 367.4 | $ 346.7 | $ 323.5 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Capitalized Software Costs And Related Accumulated Amortization) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Accounting Policies [Abstract] | ||
Capitalized software | $ 263.8 | $ 250.2 |
Accumulated amortization | (196.8) | (190.7) |
Capitalized software, net of accumulated amortization | $ 67.0 | $ 59.5 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Costs And Accumulated Amortization Of Acquired Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Accounting Policies [Abstract] | ||
Definite-lived intangible assets | $ 23.8 | $ 23.8 |
Accumulated amortization | (12.5) | (10.5) |
Definite-lived intangible assets, net of accumulated amortization | 11.3 | 13.3 |
Definite-lived intangible liabilities | (3.0) | (3.0) |
Accumulated amortization | 1.8 | 1.5 |
Definite-lived intangible liabilities, net of accumulated amortization | $ (1.2) | $ (1.5) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Amortization Expense Associated With Capitalized Software And Other Definite Lived Intangibles) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Accounting Policies [Abstract] | |||
Amortization expense - capitalized software | $ 18.6 | $ 19.7 | $ 25.4 |
Amortization expense - other definite-lived intangibles | $ 1.8 | $ 2.0 | $ 2.0 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Trademark Balances) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | $ 1,037.4 | $ 1,037.4 |
Trademarks | 806.3 | 806.3 |
Olive Garden | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 30.2 | 30.2 |
Trademarks | 0.7 | 0.7 |
LongHorn Steakhouse | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 49.3 | 49.3 |
Trademarks | 307.8 | 307.8 |
Cheddar’s Scratch Kitchen | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 165.1 | 165.1 |
Trademarks | 230.1 | 230.1 |
Yard House | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 369.2 | 369.2 |
Trademarks | 109.3 | 109.3 |
The Capital Grille | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 401.6 | 401.6 |
Trademarks | 147.4 | 147.4 |
Seasons 52 | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 0.0 | 0.0 |
Trademarks | 0.5 | 0.5 |
Eddie V’s | ||
Goodwill And Other Intangibles [Line Items] | ||
Goodwill | 22.0 | 22.0 |
Trademarks | $ 10.5 | $ 10.5 |
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 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Accounting Policies [Abstract] | |||
Anti-dilutive stock-based compensation awards (in shares) | 0.3 | 0.1 | 0.7 |
REVENUE RECOGNITION (Deferred Revenue from Contract with Customer) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
---|---|---|---|
Unearned revenues | |||
Total | $ 512.0 | $ 498.0 | |
Other liabilities | |||
Deferred franchise fees - non-current | 2.7 | 2.8 | |
Gift Card | |||
Unearned revenues | |||
Deferred revenues | 537.0 | 521.1 | $ 494.3 |
Deferred gift card discounts | (25.5) | (23.5) | |
Other | |||
Unearned revenues | |||
Deferred revenues | $ 0.5 | $ 0.4 |
REVENUE RECOGNITION (Deferred Gift Card Revenue) (Details) - Gift Card - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
May 28, 2023 |
May 29, 2022 |
|
Change in Contract with Customer, Liability [Abstract] | ||
Beginning balance | $ 521.1 | $ 494.3 |
Activations | 701.3 | 673.3 |
Redemptions and breakage | (685.4) | (646.5) |
Ending balance | $ 537.0 | $ 521.1 |
IMPAIRMENTS AND DISPOSALS OF ASSETS, NET - Schedule of Impairments and Disposal of Assets (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Asset Impairment Charges [Abstract] | |||
Restaurant impairments | $ 2.4 | $ 6.8 | $ 5.3 |
Disposal (gains) losses | (15.1) | (4.8) | (2.1) |
Other | 2.1 | (4.0) | 3.4 |
Impairments and disposal of assets, net | $ (10.6) | $ (2.0) | $ 6.6 |
IMPAIRMENTS AND DISPOSALS OF ASSETS, NET - Narrative (Details) - restaurant |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Number of underperforming restaurants | 4 | ||
Restaurants With Projected Cash Flows Less Than Carrying Value | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Number of underperforming restaurants | 1 | 1 | |
Restaurants Closed | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Number of underperforming restaurants | 4 | 2 |
LAND, BUILDING AND EQUIPMENT, NET (Components Of Land, Buildings And Equipment, Net) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Property, Plant and Equipment, Net [Abstract] | ||
Land | $ 134.0 | $ 126.2 |
Buildings | 3,655.5 | 3,389.3 |
Equipment | 2,094.5 | 1,916.9 |
Assets under finance leases | 1,062.4 | 908.5 |
Construction in progress | 200.7 | 156.0 |
Total land, buildings and equipment | 7,147.1 | 6,496.9 |
Less accumulated depreciation and amortization | (3,317.7) | (3,070.5) |
Less amortization associated with assets under finance leases | (104.3) | (70.4) |
Land, buildings and equipment, net | $ 3,725.1 | $ 3,356.0 |
SEGMENT INFORMATION (Reconciliation of Segment Profit to Earnings from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Segment Reporting [Abstract] | |||
Segment profit | $ 1,965.1 | $ 1,901.8 | $ 1,402.4 |
Less general and administrative expenses | (386.1) | (373.2) | (396.2) |
Less depreciation and amortization | (387.8) | (368.4) | (350.9) |
Less impairments and disposal of assets, net | 10.6 | 2.0 | (6.6) |
Less interest, net | (81.3) | (68.7) | (63.5) |
Less other (income) expense, net | 0.0 | 0.0 | (8.7) |
Earnings before income taxes | $ 1,120.5 | $ 1,093.5 | $ 576.5 |
DEBT (Aggregate Maturities Of Long-Term Debt) (Details) $ in Millions |
May 28, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2024 | $ 0.0 |
2025 | 0.0 |
2026 | 0.0 |
2027 | 500.0 |
2028 | 0.0 |
Thereafter | $ 439.1 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Effects of Derivative Instruments in Fair Value Hedging Relationships) (Details) - Interest rate - Interest, net - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (17.4) | $ (27.8) | $ (0.2) |
Amount of Gain (Loss) Recognized in Earnings on Related Hedged Item | $ 17.4 | $ 27.8 | $ 0.2 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Effects Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | $ 18.3 | $ (3.6) | $ 32.8 |
Food and beverage costs and restaurant expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | 0.0 | 0.0 | 0.1 |
General and administrative expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | $ 18.3 | $ (3.6) | $ 32.7 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
May 28, 2023
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge loss to be reclassified within twelve months | $ (5.4) |
FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Millions |
12 Months Ended | |
---|---|---|
May 28, 2023
USD ($)
restaurant
|
May 29, 2022
USD ($)
restaurant
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | $ 884.9 | $ 901.0 |
Fair value of long-term debt | 857.0 | 896.9 |
Carrying amount of long-lived assets held and used | 3,725.1 | 3,356.0 |
Significant Unobservable Inputs (Level 3) | Underperforming Restaurants | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount of long-lived assets held and used | $ 10.0 | $ 4.9 |
Number of underperforming restaurants | restaurant | 1 | 1 |
Assets held-for-sale, long-lived, fair value | $ 8.4 | $ 0.9 |
Asset impairment | $ 1.6 | $ 4.0 |
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) shares in Millions |
May 28, 2023 |
Jun. 22, 2022 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Share repurchase program, authorized amount | $ 1,000,000,000 | |
Stock repurchase program, cumulative shares repurchased (in shares) | 207.7 | |
Stock repurchase program, cumulative shares retired (in shares) | 196.4 |
LEASES (Components of Lease Expenses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Operating Leases | |||
Operating lease expense | $ 377.9 | $ 372.0 | |
Finance Leases | |||
Amortization of leased assets | 41.2 | 29.6 | |
Interest on lease liabilities | 44.3 | 32.3 | $ 20.9 |
Variable lease expense | 22.6 | 17.0 | |
Total lease expense | $ 486.0 | $ 450.9 |
LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | $ 367.6 | $ 374.6 | |
Operating cash flows from finance leases | 44.3 | 32.3 | |
Financing cash flows from finance leases | 19.8 | 12.9 | $ 7.1 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 131.5 | 26.0 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | 75.1 | 187.8 | |
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance | $ 86.3 | $ 171.9 | |
Weighted-Average Remaining Lease Term (Years) | |||
Operating leases | 15 years 2 months 12 days | 15 years 4 months 24 days | |
Finance leases | 22 years 6 months | 22 years 7 months 6 days | |
Weighted-Average Discount Rate | |||
Operating leases | 4.30% | 4.20% | |
Finance leases | 4.20% | 3.90% |
LEASES (Maturities of Lease Liabilities) (Details) $ in Millions |
May 28, 2023
USD ($)
lease
|
---|---|
Operating Leases | |
2024 | $ 378.7 |
2025 | 385.8 |
2026 | 388.9 |
2027 | 392.3 |
2028 | 383.3 |
Thereafter | 3,534.5 |
Total future lease commitments | 5,463.5 |
Less imputed interest | (1,613.4) |
Present value of lease liabilities | 3,850.1 |
Finance Leases | |
2024 | 72.7 |
2025 | 74.3 |
2026 | 76.1 |
2027 | 77.5 |
2028 | 79.0 |
Thereafter | 1,527.2 |
Total future lease commitments | 1,906.8 |
Less imputed interest | (720.7) |
Present value of lease liabilities | 1,186.1 |
Noncancelable lease commitments, operating leases | 2,376.5 |
Noncancelable lease commitments, finance leases | 662.6 |
Lease payments, not yet commenced | $ 107.6 |
Lease payments, not yet commenced, real estate leases | lease | 25 |
ADDITIONAL FINANCIAL INFORMATION (Receivables, net and Other Current Liabilities) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Receivables, net | ||
Allowance for doubtful accounts | $ (0.3) | $ (0.3) |
Total | 80.2 | 72.0 |
Other Current Liabilities | ||
Non-qualified deferred compensation plan | 252.4 | 249.5 |
Sales and other taxes | 96.8 | 80.4 |
Insurance-related | 42.1 | 42.5 |
Employee benefits | 42.5 | 36.5 |
Accrued interest | 16.0 | 12.2 |
Lease liabilities - current | 196.0 | 202.5 |
Miscellaneous | 106.7 | 80.9 |
Other current liabilities | 752.5 | 704.5 |
Gift card sales | ||
Receivables, net | ||
Accounts receivable, gross | 40.9 | 39.5 |
Miscellaneous | ||
Receivables, net | ||
Accounts receivable, gross | $ 39.6 | $ 32.8 |
ADDITIONAL FINANCIAL INFORMATION (Components of Interest) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interest expense | $ 50.2 | $ 40.9 | $ 47.5 |
Imputed interest on finance leases | 44.3 | 32.3 | 20.9 |
Capitalized interest | (5.4) | (2.6) | (3.2) |
Interest income | (7.8) | (1.9) | (1.7) |
Total | $ 81.3 | $ 68.7 | $ 63.5 |
ADDITIONAL FINANCIAL INFORMATION (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Cash paid during the fiscal year for: | |||
Interest, net of amounts capitalized | $ 82.4 | $ 65.0 | $ 62.5 |
Income taxes, net of refunds | 47.4 | 102.6 | 62.5 |
Non-cash investing and financing activities: | |||
Increase in land, buildings and equipment through accrued purchases | $ 66.7 | $ 48.2 | $ 29.1 |
INCOME TAXES (Allocation Of Total Income Tax Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Earnings from continuing operations | $ 137.0 | $ 138.8 | $ (55.9) |
Loss from discontinued operations | (0.8) | (0.2) | (3.2) |
Total consolidated income tax expense (benefit) | $ 136.2 | $ 138.6 | $ (59.1) |
INCOME TAXES (Components Of Earnings Before Income Tax And Provision For Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Earnings from continuing operations before income taxes: | |||
U.S. | $ 1,117.3 | $ 1,089.5 | $ 575.1 |
Foreign | 3.2 | 4.0 | 1.4 |
Earnings before income taxes | 1,120.5 | 1,093.5 | 576.5 |
Current: | |||
Federal | 165.9 | 90.7 | (226.9) |
State and local | 25.6 | 72.7 | 5.3 |
Foreign | 1.6 | 1.4 | (0.2) |
Total current | 193.1 | 164.8 | (221.8) |
Deferred (principally U.S.): | |||
Federal | (69.2) | 10.3 | 151.9 |
State and local | 13.1 | (36.3) | 14.0 |
Total deferred | (56.1) | (26.0) | 165.9 |
Income tax expense (benefit) | $ 137.0 | $ 138.8 | $ (55.9) |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Income Tax Disclosure [Line Items] | |||
Effective income tax rate | 12.20% | 12.70% | (9.70%) |
Income tax expense (benefit) | $ 137.0 | $ 138.8 | $ (55.9) |
Earnings before income taxes | 1,120.5 | 1,093.5 | $ 576.5 |
Prepaid income taxes | 107.3 | 274.8 | |
Gross unrecognized tax benefits | 23.0 | $ 22.2 | |
Tax position, change is reasonably possible in the next twelve month | 7.8 | ||
Unrecognized tax benefit that would impact effective income tax rate | 5.7 | ||
Unrecognized tax benefits, accrued interest | 2.7 | ||
State loss carryforwards | 33.2 | ||
Expiring Tax Credits | |||
Income Tax Disclosure [Line Items] | |||
State loss carryforwards | 47.7 | ||
Deferred tax assets, federal tax credit carryforwards | 12.9 | ||
State | |||
Income Tax Disclosure [Line Items] | |||
Prepaid income taxes | 12.8 | ||
Accrued income taxes | 4.2 | ||
Federal | |||
Income Tax Disclosure [Line Items] | |||
Prepaid income taxes | 94.5 | ||
Accrued income taxes | $ 3.6 |
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal tax benefits | 3.10% | 2.50% | 2.70% |
Benefit of federal income tax credits | (10.40%) | (9.80%) | (11.10%) |
Stock-based compensation tax benefit | (0.90%) | (0.90%) | (1.90%) |
Federal net operating loss | 0.00% | 0.00% | (20.60%) |
Other, net | (0.60%) | (0.10%) | 0.20% |
Effective income tax rate | 12.20% | 12.70% | (9.70%) |
INCOME TAXES (Reconciliation Of Unrecognized Tax Benefits) (Details) $ in Millions |
12 Months Ended |
---|---|
May 28, 2023
USD ($)
| |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 22.2 |
Additions related to current-year tax positions | 5.2 |
Reductions related to prior-year tax positions | 0.0 |
Net reductions due to settlements with taxing authorities | (1.9) |
Reductions to tax positions due to statute expiration | (2.5) |
Ending balance | $ 23.0 |
INCOME TAXES (Schedule Of Interest Expense On Income Tax Expense (Benefits)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Interest recorded on unrecognized tax benefits | $ 2.2 | $ 1.3 | $ 0.7 |
Interest recorded on income tax receivables | (6.8) | (3.1) | 0.0 |
Total (Benefit) Expense | $ (4.6) | $ (1.8) | $ 0.7 |
INCOME TAXES (Tax Effects On Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Accrued liabilities | $ 117.2 | $ 80.0 |
Compensation and employee benefits | 122.8 | 123.6 |
Lease liabilities | 1,248.5 | 1,227.3 |
Net operating loss, credit and charitable contribution carryforwards | 77.5 | 121.0 |
Other | 4.3 | 6.3 |
Gross deferred tax assets | 1,570.3 | 1,558.2 |
Valuation allowance | (21.1) | (20.8) |
Deferred tax assets, net of valuation allowance | 1,549.2 | 1,537.4 |
Trademarks and other acquisition related intangibles | (184.2) | (178.7) |
Buildings and equipment | (337.7) | (402.1) |
Capitalized software and other assets | (26.0) | (23.5) |
Lease assets | (1,129.5) | (1,120.4) |
Other | (14.0) | (13.8) |
Gross deferred tax liabilities | (1,691.4) | (1,738.5) |
Net deferred tax liabilities | $ (142.2) | $ (201.1) |
RETIREMENT PLANS (Funding Of Defined Benefit Pension Plans And Postretirement Benefit Plans) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plans and postretirement benefit plans funding | $ 0.4 | $ 0.4 | $ 0.4 |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plans and postretirement benefit plans funding | $ 1.7 | $ 1.8 | $ 1.4 |
RETIREMENT PLANS (Funded Status And Amounts Recognized In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 0.4 | $ 0.0 |
Noncurrent liabilities | 3.3 | 4.0 |
Net amounts recognized | 3.7 | 4.0 |
Net actuarial gain (loss) | (1.1) | (1.2) |
Net amounts recognized | (1.1) | (1.2) |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 1.6 | 1.9 |
Noncurrent liabilities | 13.8 | 16.1 |
Net amounts recognized | 15.4 | 18.0 |
Net actuarial gain (loss) | 0.0 | (1.2) |
Net amounts recognized | $ 0.0 | $ (1.2) |
RETIREMENT PLANS (Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation for all defined benefit plans | $ 3.7 | $ 4.0 |
Pension plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 3.7 | 4.0 |
Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets | $ 3.7 | $ 4.0 |
RETIREMENT PLANS (Weighted-Average Assumptions Used) (Details) |
12 Months Ended | |
---|---|---|
May 28, 2023 |
May 29, 2022 |
|
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average assumptions used to determine benefit obligations, discount rate | 4.87% | 4.32% |
Weighted-average assumptions used to determine net expense, discount rate | 4.32% | 2.46% |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average assumptions used to determine benefit obligations, discount rate | 5.07% | 4.51% |
Weighted-average assumptions used to determine net expense, discount rate | 4.51% | 2.86% |
RETIREMENT PLANS (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0.0 | $ 0.0 | $ 0.0 |
Interest cost | 0.1 | 0.1 | 0.1 |
Amortization of unrecognized prior service cost | 0.0 | 0.0 | 0.0 |
Recognized net actuarial loss | 0.1 | 0.1 | 0.1 |
Net pension and postretirement cost (benefit) | 0.2 | 0.2 | 0.2 |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.0 | 0.0 | 0.0 |
Interest cost | 0.7 | 0.4 | 0.6 |
Amortization of unrecognized prior service cost | 0.0 | 0.0 | (0.3) |
Recognized net actuarial loss | 0.0 | 0.4 | 1.9 |
Net pension and postretirement cost (benefit) | $ 0.7 | $ 0.8 | $ 2.2 |
RETIREMENT PLANS (Expected Benefit Payments) (Details) $ in Millions |
May 28, 2023
USD ($)
|
---|---|
Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 0.4 |
2025 | 0.4 |
2026 | 0.4 |
2027 | 0.4 |
2028 | 0.4 |
2029-2033 | 1.6 |
Postretirement Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 1.6 |
2025 | 1.6 |
2026 | 1.5 |
2027 | 1.4 |
2028 | 1.3 |
2029-2033 | $ 5.4 |
STOCK-BASED COMPENSATION (General Narrative) (Details) - shares shares in Millions |
May 28, 2023 |
Sep. 30, 2015 |
---|---|---|
2015 Plan | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Shares available for issuance (in shares) | 7.6 | |
Prior Plans | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Shares available for issuance (in shares) | 0.1 |
STOCK-BASED COMPENSATION (Black-Scholes Model) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |||
Weighted-average fair value (in dollars per share) | $ 36.20 | $ 41.02 | $ 20.07 |
Dividend yield | 3.80% | 3.20% | 3.00% |
Expected volatility of stock | 42.00% | 39.60% | 37.30% |
Risk-free interest rate | 2.80% | 0.90% | 0.40% |
Expected option life | 5 years 10 months 24 days | 6 years 3 months 18 days | 6 years 4 months 24 days |
Weighted-average exercise price per share (in dollars per share) | $ 121.47 | $ 148.20 | $ 78.84 |
STOCK-BASED COMPENSATION (Stock Option Activity) (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 29.7 | $ 41.5 | $ 57.3 |
Cash received from option exercises | $ 24.2 | $ 29.7 | $ 36.6 |
Vesting period | 4 years | ||
Maximum terms of awards | 10 years | ||
Stock options | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 4.8 | ||
Unrecognized compensation cost, period of recognition | 2 years 3 months 18 days | ||
Fair market value on grant date | $ 6.3 |
STOCK-BASED COMPENSATION (Restricted Stock And RSU Activity) (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
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 | $ 6.7 | ||
Unrecognized compensation cost, period of recognition | 1 year 9 months 18 days | ||
Fair market value on grant date | $ 6.6 | $ 7.0 | $ 10.6 |
Minimum | Restricted stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Maximum | Restricted stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
STOCK-BASED COMPENSATION (Summary Of Restricted Stock And RSU Activity) (Details) - Restricted stock units shares in Thousands |
12 Months Ended |
---|---|
May 28, 2023
$ / shares
shares
| |
Shares | |
Outstanding beginning of period (in shares) | shares | 250 |
Shares granted (in shares) | shares | 80 |
Shares vested (in shares) | shares | (50) |
Shares canceled (in shares) | shares | 0 |
Outstanding end of period (in shares) | shares | 280 |
Weighted-Average Grant Date Fair Value Per Share | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 107.00 |
Shares granted (in dollars per share) | $ / shares | 127.39 |
Shares vested (in dollars per share) | $ / shares | 122.80 |
Shares canceled (in dollars per share) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 109.70 |
STOCK-BASED COMPENSATION (Summary Of Darden Stock Unit Activity) (Details) - Darden stock units shares in Thousands |
12 Months Ended |
---|---|
May 28, 2023
$ / shares
shares
| |
Units | |
Outstanding beginning of period (in shares) | shares | 820 |
Units granted (in shares) | shares | 210 |
Units vested (in shares) | shares | (160) |
Units canceled (in shares) | shares | (60) |
Outstanding end of period (in shares) | shares | 810 |
Weighted-Average Fair Value Per Unit | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 126.04 |
Units granted (in dollars per share) | $ / shares | 123.33 |
Units vested (in dollars per share) | $ / shares | 121.56 |
Units canceled (in dollars per share) | $ / shares | 119.13 |
Outstanding end of period (in dollars per share) | $ / shares | $ 161.28 |
STOCK-BASED COMPENSATION (Summary Of Performance Stock Unit Activity) (Details) - Equity-settled performance-based restricted stock units shares in Thousands |
12 Months Ended |
---|---|
May 28, 2023
$ / shares
shares
| |
Units | |
Outstanding beginning of period (in shares) | shares | 410 |
Units granted (in shares) | shares | 100 |
Units granted performance impact (in shares) | shares | (40) |
Units vested (in shares) | shares | (110) |
Units canceled (in shares) | shares | 0 |
Outstanding end of period (in shares) | shares | 360 |
Weighted-Average Fair Value Per Unit | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 114.10 |
Units granted (in dollars per share) | $ / shares | 121.47 |
Units granted performance impact (in dollars per share) | $ / shares | 115.97 |
Units vested (in dollars per share) | $ / shares | 107.04 |
Units canceled (in dollars per share) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 123.45 |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions |
May 28, 2023 |
May 29, 2022 |
---|---|---|
Workers Compensation And General Liabilities Accrued | ||
Commitments and Contingencies [Line Items] | ||
Standby letters of credit | $ 85.3 | $ 104.8 |
Surety Bond And Other Payments | ||
Commitments and Contingencies [Line Items] | ||
Standby letters of credit | 15.2 | 18.8 |
Property Lease Guarantee | ||
Commitments and Contingencies [Line Items] | ||
Loss contingency, maximum estimate of possible loss | 82.0 | 101.0 |
Fair value of potential payments discounted at pre-tax cost of capital related to guarantee obligations | $ 68.4 | $ 83.6 |
OTHER SUBSEQUENT EVENT (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Jun. 21, 2023 |
May 28, 2023 |
May 29, 2022 |
May 30, 2021 |
|
Subsequent Event [Line Items] | ||||
Cash dividend declared (in dollars per share) | $ 4.84 | $ 4.40 | $ 1.55 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividend declared (in dollars per share) | $ 1.31 |
C,9H>C$>WT_1P01SR&0"
MDD28'J+/Z".RD4C4J.C;4LVN/>RHG.FTF,E[8Z9K_(2\[A'R',^O48]V4/>,
MVMM6VRKC*FVO2MLS=OX;=E.)):AJE(C-T3G)K,$\!58X:;MOY4I?W?S+;6@:_6@:_R3T )! ^PD !D !X;"]W;W)K +]T2C/(U1BFB-J=!DROI253+EG!U'DJT<>/'\;9X/,7
M8EO10'7"[[,0\5!;9BZ5]*Q#D>>V02X6F,9RA9Q1L@@AUU)3[25Y4'J/0P<-3-YDL5C+I[B-*V*X\IY%5&.^H0@Q .XI8S(
M""4
#)>UR,^'!(/J^ F4VU1$FF6R:T>,2)* P/B,1?<#"(\?8 #"*]$\482H!Y
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M.DHB>U!C68MZ1%452[N\@$T[<6N;X)# # %;7+PK^.,-'.@MK(G+TP
;SJ,BJP7H?5A,]2(DG011MK-08!?S9HBM0+5EN
M]<=IBGFOW!1X*ZJ+%$:$J7_O\J4&\(KJUI:W:@@B,[&0!KY/*^5KKAL,(,(=
MV4S%Z0WF+-VC#?&Z2":JE4 C%H43L%(:@92;C+P>L3%=!'/145J05-,">? Y
M#@2=#1H$ZR^.S-&T-ON*>7$)XHLGZ,0KH>=Y#XXT!ZG2J%JDJ*Q9HOA),]H0
MBDM)DFCH#19%L^DY8 %F %M@0V*#]'9;\")4LL6X(_0ZP>=*B7I@H+!*EE@F
MJNG.M(=O+CIN.)0/3VY!V]2
MYQ+%E&5P8A8.,RE?<>?,Z#9&::QV6BIF\D08'&^3<
M-A7$.A UFJNC9C(L5E=2AJWH#FRY1E(?.Q!/I1,JQQ!6U%EOC@4H&PQ@3)'B
M6*!X#^M7\N_#G=S'58U6_>*QR5W]&ZL\\JGK0[EF^:I=IRY.7X7R0DDE7=1#
M<)Y2U1ST_";C ;5L-GLT[*W$W;KH=V-> .MA]=MH ]"XT(MX+F8(0QL?/]'W
MQ7$\>3R06__.^YZ('W?TU.WT?
MAT/GW?!P='\CS(*W [F
70TPCIZ:25T%85; @A*@CW7J"9
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MZ%;F%A-Z;!
P[$[:7,G)A/BR L8
M;R5B!,X7^/\72PM,E\_HP=IX$I]#]<
M&WNQP1GQ.5H/,4./#T&KOZ(GD3/ZN!>>28[BYH?[$1.E0_),AZVQN.2&MRR\O3S
MTW[ I*Y!(S.N=!Z?^-! 4 H5]6Q6D3C<=*B/>.P#$JK--96(QQEN3^
M+I\##HT%D_Z.!<.P8,AR>T8LY5OIY/6ET2MA:#:HT0.KRJLA7)+3ICPZ@U\3
MK'/7#W>?WC_;C[^$G<_W[S\?'RQ($J_782!0IO/(7A#@J#H?B@<[>PXBZ/
M5=PF< )Q*IF&I4QOAGLI?I!K,9P
H9-JM9N_*S1$(ORW=%F77,R:F$ZR81
MRCMEOXY52C$AQYDCCN4"T'#.3R4+0.J^GU[HF=^.6'LB.GTO]/'9#3Q4Q1-,
M\?P!P$KU K8^)BJ-104'SC.D5YG4&1]WR6O/