Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2020 | Nov. 22, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | DARDEN RESTAURANTS INC | |
Entity Central Index Key | 0000940944 | |
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Period End Date | May 31, 2020 | |
Current Fiscal Year End Date | --05-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Document Transition Report | false | |
Entity File Number | 1-13666 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-3305930 | |
Entity Address, Address Line One | 1000 Darden Center Drive, | |
Entity Address, City or Town | Orlando, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32837 | |
City Area Code | 407 | |
Local Phone Number | 245-4000 | |
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | DRI | |
Security Exchange Name | NYSE | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Voluntary Filer | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Public Float | $ 13,915,679 | |
Entity Common Stock, Shares Outstanding | 129,893,801 | |
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for its Annual Meeting of Shareholders on September 23, 2020 , to be filed with the Securities and Exchange Commission no later than 120 days after May 31, 2020 , are incorporated by reference into Part III of this Report. |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Sales | $ 7,806.9 | $ 8,510.4 | $ 8,080.1 |
Costs and expenses: | |||
Restaurant labor | 2,682.6 | 2,771.1 | 2,614.5 |
Marketing expenses | 238 | 255.3 | 252.3 |
General and administrative expenses | 376.4 | 405.5 | 409.8 |
Depreciation and amortization | 355.9 | 336.7 | 313.1 |
Impairments and disposal of assets, net | 221 | 19 | 3.4 |
Goodwill impairment | 169.2 | 0 | 0 |
Total operating costs and expenses | 7,759 | 7,677.9 | 7,313.3 |
Operating income | 47.9 | 832.5 | 766.8 |
Interest, net | 57.3 | 50.2 | 161.1 |
Other (income) expense, net | 151.6 | 0 | 0 |
Earnings (loss) before income taxes | (161) | 782.3 | 605.7 |
Income tax expense (benefit) | (111.8) | 63.7 | 1.9 |
Earnings (loss) from continuing operations | (49.2) | 718.6 | 603.8 |
Losses from discontinued operations, net of tax benefit of $0.9, $1.8 and $4.8, respectively | (3.2) | (5.2) | (7.8) |
Net earnings (loss) | $ (52.4) | $ 713.4 | $ 596 |
Basic net earnings per share: | |||
Earnings (loss) from continuing operations (in dollars per share) | $ (0.40) | $ 5.82 | $ 4.87 |
Losses from discontinued operations (in dollars per share) | (0.03) | (0.04) | (0.06) |
Net earnings (loss) (in dollars per share) | (0.43) | 5.78 | 4.81 |
Diluted net earnings per share: | |||
Earnings (loss) from continuing operations (in dollars per share) | (0.40) | 5.73 | 4.79 |
Losses from discontinued operations (in dollars per share) | (0.03) | (0.04) | (0.06) |
Net earnings (loss) (in dollars per share) | $ (0.43) | $ 5.69 | $ 4.73 |
Average number of common shares outstanding: | |||
Basic (in shares) | 122.7 | 123.5 | 124 |
Diluted (in shares) | 122.7 | 125.4 | 126 |
Food and beverage | |||
Costs and expenses: | |||
Costs of goods and services sold | $ 2,240.8 | $ 2,412.5 | $ 2,303.1 |
Restaurant expenses | |||
Costs and expenses: | |||
Costs of goods and services sold | $ 1,475.1 | $ 1,477.8 | $ 1,417.1 |
Consolidated Statements Of Ea_2
Consolidated Statements Of Earnings (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Income Statement [Abstract] | |||
Tax expense (benefit) of discontinued operations | $ (0.9) | $ (1.8) | $ (4.8) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ (52.4) | $ 713.4 | $ 596 |
Other comprehensive income (loss): | |||
Foreign currency adjustment | 5.5 | 0.6 | (0.9) |
Change in fair value of marketable securities, net of taxes of $0.0, $0.0 and $0.0, respectively | 0 | 0 | (0.1) |
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $(0.3), $(0.1) and $0.0, respectively | (17.6) | 5.6 | (4.6) |
Net unamortized gain (loss) arising during period, including amortization of unrecognized net actuarial loss, net of taxes of $30.8, $(6.4) and $(0.7), respectively | 92.7 | (19.2) | (1.1) |
Reclassification of tax effect | 0 | 0 | (15.6) |
Other comprehensive income (loss) | 80.6 | (13) | (22.3) |
Total comprehensive income | $ 28.2 | $ 700.4 | $ 573.7 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Change in fair value of marketable securities, tax | $ 0 | $ 0 | $ 0 |
Other comprehensive income (loss), unrecognized gain (loss) on derivatives, net of taxes | (0.3) | (0.1) | 0 |
Net unamortized gain (loss) arising during period, including amortization of unrecognized net actuarial loss, tax | $ 30.8 | $ (6.4) | $ (0.7) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 763.3 | $ 457.3 |
Receivables, net | 49.8 | 88.3 |
Inventories | 206.9 | 207.3 |
Prepaid income taxes | 18.4 | 41.6 |
Prepaid expenses and other current assets | 63 | 98.1 |
Total current assets | 1,101.4 | 892.6 |
Land, buildings and equipment, net | 2,756.9 | 2,552.6 |
Operating lease right-of-use assets | 3,969.2 | |
Goodwill | 1,037.4 | 1,183.7 |
Trademarks | 805.9 | 950.8 |
Other assets | 275.3 | 313.1 |
Total assets | 9,946.1 | 5,892.8 |
Current liabilities: | ||
Accounts payable | 249.4 | 332.6 |
Short-term debt | 270 | 0 |
Accrued payroll | 150 | 175.3 |
Accrued income taxes | 6.2 | 11.6 |
Other accrued taxes | 43.4 | 54.2 |
Unearned revenues | 467.9 | 428.5 |
Other current liabilities | 605.9 | 471.9 |
Total current liabilities | 1,792.8 | 1,474.1 |
Long-term debt | 928.8 | 927.7 |
Deferred income taxes | 56.1 | 156.9 |
Operating lease liabilities - non-current | 4,276.3 | |
Deferred rent | 354.4 | |
Other liabilities | 560.9 | 587.1 |
Total liabilities | 7,614.9 | 3,500.2 |
Stockholders’ equity: | ||
Common stock and surplus, no par value. Authorized 500.0 shares; issued 129.9 and 123.1 shares, respectively; outstanding 129.9 and 123.1 shares, respectively | 2,205.3 | 1,685 |
Preferred stock, no par value. Authorized 25.0 shares; none issued and outstanding | 0 | 0 |
Retained earnings | 143.5 | 806.6 |
Accumulated other comprehensive income (loss) | (17.6) | (98.2) |
Unearned compensation | 0 | (0.8) |
Total stockholders’ equity | 2,331.2 | 2,392.6 |
Total liabilities and stockholders’ equity | $ 9,946.1 | $ 5,892.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | May 31, 2020 | May 26, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 129,900,000 | 123,100,000 |
Common stock, outstanding (in shares) | 129,900,000 | 123,100,000 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock And Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Unearned Compensation |
Beginning Balance at May. 28, 2017 | $ 2,101.7 | $ 1,614.6 | $ 560.1 | $ (7.8) | $ (62.9) | $ (2.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 596 | 596 | ||||
Other comprehensive income | (22.3) | (22.3) | ||||
Dividends declared | (315.3) | (315.3) | ||||
Stock option exercises | 32 | 32 | ||||
Stock-based compensation | 22.7 | 22.7 | ||||
Repurchases of common stock | (234.8) | (36) | (198.8) | |||
Issuance of stock under Employee Stock Purchase Plan and other plans | 5.8 | 5.7 | 0.1 | |||
Other | 9 | (7.1) | 15.6 | 0.5 | ||
Ending Balance at May. 27, 2018 | 2,194.8 | 1,631.9 | 657.6 | (7.8) | (85.2) | (1.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 713.4 | 713.4 | ||||
Other comprehensive income | (13) | (13) | ||||
Dividends declared | (373.5) | (373.5) | ||||
Stock option exercises | 52.2 | 52.2 | ||||
Stock-based compensation | 26.8 | 26.8 | ||||
Repurchases of common stock | (207.5) | (26.2) | (181.3) | |||
Issuance of stock under Employee Stock Purchase Plan and other plans | 7.9 | 7.1 | 0.8 | |||
Other | (8.5) | (6.8) | (9.6) | $ 7.8 | 0.1 | |
Ending Balance at May. 26, 2019 | 2,392.6 | 1,685 | 806.6 | (98.2) | (0.8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | (52.4) | (52.4) | ||||
Other comprehensive income | 80.6 | 80.6 | ||||
Dividends declared | (325.1) | (325.1) | ||||
Stock option exercises | 12.4 | 12.4 | ||||
Stock-based compensation | 33.4 | 33.4 | ||||
Repurchases of common stock | (330.3) | (40.9) | (289.4) | |||
Issuance of stock under Employee Stock Purchase Plan and other plans | 8.4 | 8.4 | ||||
Stock issuance - Public Offering (9.0 shares) | 505.1 | 505.1 | ||||
Other | 6.5 | 1.9 | 3.8 | $ 0.8 | ||
Ending Balance at May. 31, 2020 | $ 2,331.2 | $ 2,205.3 | $ 143.5 | $ (17.6) |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 2.64 | $ 3 | $ 2.52 |
Stock option exercised (in shares) | 300,000 | 1,200,000 | 800,000 |
Repurchases of common stock (in shares) | 2,900,000 | 1,900,000 | 2,800,000 |
Issuance of stock under Employee Stock Purchase Plan and other plans (in shares) | 100,000 | 100,000 | 100,000 |
Stock Issuance - Public Offering (in shares) | 9,000,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Cash flows - operating activities | |||
Net earnings (loss) | $ (52.4) | $ 713.4 | $ 596 |
Losses from discontinued operations, net of tax | 3.2 | 5.2 | 7.8 |
Adjustments to reconcile net earnings (loss) from continuing operations to cash flows: | |||
Depreciation and amortization | 355.9 | 336.7 | 313.1 |
Goodwill and other impairments and disposal of assets, net | (390.2) | (19) | (3.4) |
Stock-based compensation expense | 53 | 59.8 | 42.8 |
Change in current assets and liabilities | (73.3) | 36.4 | (8) |
Contributions to pension and postretirement plans | (14.4) | (1.7) | (62) |
Deferred income taxes | (133.6) | 47.5 | (20.6) |
Change in deferred rent | 0 | 34.3 | 36.6 |
Change in other assets and liabilities | 38.3 | 9.5 | 14.6 |
Pension settlement charge | 145.5 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 102.2 |
Other, net | 5 | 7.5 | (6.1) |
Net cash provided by operating activities of continuing operations | 717.4 | 1,267.6 | 1,019.8 |
Cash flows - investing activities | |||
Purchases of land, buildings and equipment | (459.9) | (452) | (396) |
Proceeds from disposal of land, buildings and equipment | 5.8 | 13.2 | 3.3 |
Cash used in business acquisitions, net of cash acquired | (55.8) | 0 | (40.4) |
Purchases of capitalized software and other assets | (24.6) | (25.9) | (22.8) |
Other, net | (9.5) | 2.1 | 4.8 |
Net cash used in investing activities of continuing operations | (544) | (462.6) | (451.1) |
Cash flows - financing activities | |||
Net proceeds from issuance of common stock | 525.9 | 59.3 | 37.8 |
Dividends paid | (322.3) | (370.8) | (313.5) |
Repurchases of common stock | (330.3) | (207.5) | (234.8) |
Proceeds from issuance of short-term debt | 1,020 | 137.5 | 960 |
Repayments of short-term debt | (750) | (137.5) | (960) |
Repayments of long-term debt | 0 | 0 | (408.2) |
Proceeds from issuance of long-term debt | 0 | 0 | 300 |
Principal payments on capital and financing leases | (5.2) | (6.2) | (5.4) |
Proceeds from financing lease obligation | 0 | 40.9 | 0 |
Other, net | 0.6 | 0.1 | (12.5) |
Net cash provided by (used) in financing activities of continuing operations | 138.7 | (484.2) | (636.6) |
Cash flows - discontinued operations | |||
Net cash used in operating activities of discontinued operations | (6.1) | (10.4) | (18.5) |
Net cash provided by investing activities of discontinued operations | 0 | 0 | 0.2 |
Net cash used in discontinued operations | (6.1) | (10.4) | (18.3) |
Increase (decrease) in cash and cash equivalents | 306 | 310.4 | (86.2) |
Cash and cash equivalents - beginning of year | 457.3 | 146.9 | 233.1 |
Cash and cash equivalents - end of year | 763.3 | 457.3 | 146.9 |
Cash flows from changes in current assets and liabilities | |||
Receivables, net | 13.7 | 2.1 | (7.2) |
Inventories | (13.9) | (2.1) | (26.6) |
Prepaid expenses and other current assets | (2.8) | (8.2) | (12.5) |
Accounts payable | (68.5) | 55 | 12.6 |
Accrued payroll | (25.3) | (2.2) | 25.9 |
Prepaid/accrued income taxes | 17.8 | (14.2) | (9.9) |
Other accrued taxes | (10.9) | (2.4) | 1.6 |
Unearned revenues | 39.4 | 11.3 | 33.5 |
Other current liabilities | (22.8) | (2.9) | (25.4) |
Change in current assets and liabilities | $ (73.3) | $ 36.4 | $ (8) |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
May 31, 2020 | |
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 ® and Eddie V’s Prime Seafood ® 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 3 joint venture restaurants managed by us and 30 franchised restaurants. We also have 32 franchised restaurants in operation located in Latin America and the Middle East. All significant intercompany balances and transactions have been eliminated in consolidation. For fiscal 2020 , 2019 and 2018 , 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 In March 2020, the COVID-19 outbreak was declared a national public health emergency resulting in a significant reduction in guest traffic at our restaurants due to changes in consumer behavior as public health officials encouraged social distancing and state and local governments mandated restrictions including suspension of dine-in operations, reduced restaurant seating capacity, table spacing requirements, bar closures and additional physical barriers. Through the first three quarters of fiscal 2020, our financial results were strong as sales from continuing operations for the first nine months of fiscal 2020 increased over the prior year period. The COVID-19 pandemic negatively impacted this strong performance, and for most of the fourth quarter of fiscal 2020, we operated with all of our dining rooms closed and served our guests in a To Go only or To Go and delivery format. Our sales for the fourth quarter of fiscal 2020 declined compared to the fourth quarter of fiscal 2019. As we continue to navigate through the pandemic, we have taken significant steps to adapt our business to allow us to continue to serve guests, support our team members and secure our liquidity position to provide financial flexibility, including: • Modifying our business operations in order to continue serving guests at our restaurants as safely and effectively as possible, including, initially transitioning all restaurant locations to a To Go only or To Go and delivery model; • Reducing or eliminating fixed costs in our restaurants and restaurant support center as well as eliminating or delaying most nonessential capital spending; • Furloughing a substantial number of hourly restaurant employees as a result of the closure of our dining rooms and reduction in sales; • Protecting our team members’ safety and wellbeing, including sourcing additional sanitation supplies and personal protective equipment, implementing paid sick leave for all hourly restaurant team members, providing a $75.0 million emergency pay program and covering $4.1 million of health and welfare insurance premiums for furloughed team members; • Suspending the quarterly cash dividend, with the intention of reviewing our dividend policy as developments warrant; • Fully drawing on our $750.0 million Revolving Credit Agreement, which was subsequently repaid in May 2020; • Securing a $270.0 million term loan; • Raising $505.1 million in net proceeds from a follow-on equity offering; • Suspending our share repurchase activity; and • Implementing a careful, phased reopening of our dining rooms where permitted by local regulations. The impact on our operating results as well as the operational and financial measures we have implemented in response to the COVID-19 pandemic have been included throughout this document. As a result of the economic impact of the COVID-19 pandemic, during the fourth quarter of fiscal 2020, we recorded non-cash impairment charges of $390.0 million related to a portion of our goodwill, other indefinite-lived intangible assets, and other assets. See “Goodwill and Intangible Assets” section below and Note 3 for additional information. Additionally, on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in the United States. The provisions of the CARES Act provide for, among other items, refundable employee retention tax credits for which we intend to claim approximately $39.2 million related to our emergency pay program mentioned above. See Note 12 for additional information. 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 2020 , which ended May 31, 2020 , consisted of 53 weeks. Fiscal 2019 , which ended May 26, 2019 , consisted of 52 weeks and fiscal 2018 , which ended May 27, 2018 , 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. Franchise Acquisitions During fiscal 2020 , we completed the acquisition of eight Cheddar's Scratch Kitchen restaurants ( seven operating and one closed) and certain assets and liabilities from existing franchisees. The acquisitions were funded with cash on hand for $58.1 million in total consideration, of which approximately $29.9 million was allocated to land, buildings and equipment. The results of operations of these restaurants are included in our consolidated financial statements from the date of acquisition. Pro-forma financial information of the combined entities for periods prior to the acquisitions is not presented due to the immaterial impact, both individually and in the aggregate, of the financial results of the acquired restaurants on our consolidated financial statements. 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: (in millions) May 31, 2020 May 26, 2019 Short-term investments $ 673.5 $ 319.5 Credit card receivables 64.0 108.2 Depository accounts 25.8 29.6 Total cash and cash equivalents $ 763.3 $ 457.3 As of May 31, 2020 , and May 26, 2019 , we had cash and cash equivalent accounts in excess of insured limits. We manage the credit risk of our positions through utilizing multiple financial institutions and monitoring the credit quality of those financial institutions that hold our cash and cash equivalents. Receivables, Net Receivables, net of the allowance for doubtful accounts, represent their estimated net realizable value. Provisions for doubtful accounts are recorded based on historical collection experience and the age of the receivables. Receivables are written off when they are deemed uncollectible. See Note 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 7 to 40 years using the straight-line method. Leasehold improvements, which are reflected on our consolidated balance sheets as a component of buildings in land, buildings and equipment, net, are amortized over the lesser of the expected lease term 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 undepreciated book value associated with the replacement of equipment in the normal course of business is recorded as a component of restaurant expenses in our accompanying consolidated statements of earnings. Depreciation and amortization expense from continuing operations associated with buildings and equipment and losses on replacement of equipment were as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Depreciation and amortization on buildings and equipment $ 326.8 $ 308.8 $ 288.8 Losses on replacement of equipment 2.4 3.6 4.1 Capitalized Software Costs and Other Definite-Lived Intangibles Capitalized software, which is a component of other assets, is recorded at cost less accumulated amortization. Capitalized software is amortized using the straight-line method over estimated useful lives ranging from 3 to 10 years. The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 31, 2020 May 26, 2019 Capitalized software $ 227.9 $ 221.6 Accumulated amortization (159.7 ) (146.9 ) Capitalized software, net of accumulated amortization $ 68.2 $ 74.7 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. Additionally, prior to the adoption of FASB ASC Topic 842 in fiscal 2020, we had definite-lived intangible assets and liabilities related to the value of below-market leases and above-market leases, respectively, resulting from our acquisitions. Upon adoption of FASB ASC Topic 842, we derecognized those definite-lived intangible assets and liabilities and adjusted the carrying amount of the lease right-of-use asset by the corresponding amount. Definite-lived intangibles are amortized on a straight-line basis over estimated useful lives of 1 to 20 years. The cost and related accumulated amortization was as follows: (in millions) May 31, 2020 May 26, 2019 Definite-lived intangible assets $ 23.8 $ 80.3 Accumulated amortization (6.4 ) (30.4 ) Definite-lived intangible assets, net of accumulated amortization $ 17.4 $ 49.9 Definite-lived intangible liabilities $ (3.0 ) $ (33.5 ) Accumulated amortization 0.9 13.6 Definite-lived intangible liabilities, net of accumulated amortization $ (2.1 ) $ (19.9 ) 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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Amortization expense - capitalized software $ 25.7 $ 26.7 $ 23.5 Amortization expense - other definite-lived intangibles 3.4 1.2 0.8 Amortization expense from continuing operations associated with above- and-below-market leases included in restaurant expenses as a component of rent expense in our consolidated statements of earnings was as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Restaurant expense - below-market leases $ — $ 3.0 $ 3.1 Restaurant expense - above-market leases — (1.6 ) (1.7 ) Based on the net book values of our definite-lived intangible assets and liabilities at May 31, 2020 , we expect amortization of capitalized software and other definite-lived intangible assets will be approximately $25.0 million annually for fiscal 2021 through 2025 . 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: Goodwill Trademarks (in millions) May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Olive Garden $ 30.2 $ 30.2 $ 0.7 $ 0.7 LongHorn Steakhouse 49.3 49.3 307.8 307.8 Cheddar’s Scratch Kitchen (1)(2) 165.1 311.4 230.1 375.0 Yard House 369.2 369.2 109.3 109.3 The Capital Grille 401.6 401.6 147.0 147.0 Seasons 52 — — 0.5 0.5 Eddie V’s 22.0 22.0 10.5 10.5 Total $ 1,037.4 $ 1,183.7 $ 805.9 $ 950.8 (1) During fiscal 2020, goodwill related to Cheddar’s Scratch Kitchen decreased $169.2 million due to an impairment charge and increased $22.9 million due to acquisitions of previously franchised locations. (2) During fiscal 2020, the Cheddar’s Scratch Kitchen trademark balance decreased due to an impairment charge. We have eight reporting units, six of which have goodwill and seven of which have trademarks. Goodwill and trademarks are not subject to amortization and have been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. 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 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 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 results and cash flows that are discounted using a weighted-average cost of capital that reflects current market conditions. We recognize an 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 our annual long-range plan; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate. We recognize an impairment loss when the estimated fair value of the trademark is less than its carrying value. We performed our annual impairment test of our goodwill and trademarks as of February 24, 2020 which was the first day of our fiscal 2020 fourth quarter. As of February 24, 2020, no impairment of goodwill or trademarks was indicated based on our testing. However, subsequent to our annual test date, we identified indicators of impairment due to the COVID-19 pandemic, including but not limited to stock price volatility in general, the volatility of our stock price as well as our competitors, the significant decline in our market capitalization, declining sales at our restaurants and the challenging environment for the restaurant industry due to the mandated suspension of dine-in operations and other restrictions such as table spacing requirements. Due to the indicators that were present throughout our fourth quarter, we deemed it more likely than not that an impairment may have occurred in both our goodwill and trademark balances and performed impairment testing as of May 31, 2020 to determine if the fair values were less than their carrying values. Due to the economic impact of COVID-19 on Darden’s overall market capitalization and the impact on Cheddar’s Scratch Kitchen projected sales and cash flows, we determined that both the estimated fair values of the trademark and the reporting unit for Cheddar’s Scratch Kitchen were less than their carrying values. As a result, we recorded in our fiscal 2020 fourth quarter pre-tax non-cash impairment charges of $145.0 million and $169.2 million related to the Cheddar’s Scratch Kitchen trademark and goodwill balances, respectively. The fair value of our remaining reporting units exceeded their carrying values by at least 30 percent and the trademark fair value of our remaining reporting units exceeded their carrying values by at least 40 percent . We evaluate the useful lives of our other intangible assets to determine if they are definite or indefinite-lived. A determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets. Impairment or Disposal of Long-Lived Assets Land, buildings and equipment, 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 impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined based on appraisals, sales prices of comparable assets or discounted future net cash flows expected to be generated by the assets. Restaurant sites and certain other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell, 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. Additionally, at the date we cease using a property, we adjust the lease liability for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to the lease liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets, primarily land, associated with a closed restaurant, any gain or loss is recorded in the same caption within our consolidated statements of earnings as the original impairment. See Note 3 for additional information. 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 equity forwards 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 In April 2020, the FASB issued additional guidance on the application of FASB ASC Topic 842, Leases, for lease concessions related to the effects of COVID-19. We have elected to apply the practical expedient outlined in the question-and-answer to account for COVID-19 related lease concessions as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. This has been applied to lease contracts in which the lease concessions did not result in a substantial increase in the lease obligation. We have elected the remeasurement consistent with resolving a contingency approach which allows us to remeasure the lease liability and recognize the amount of change in the lease liability as an adjustment to the carrying amount of the associated right-of-use asset. The total net aggregate of those adjustments was less than $1.0 million for fiscal 2020. 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 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
May 31, 2020 | |
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: (in millions) May 31, 2020 May 26, 2019 Unearned revenues Deferred gift card revenue $ 494.6 $ 453.6 Deferred gift card discounts (28.2 ) (26.4 ) Other 1.5 1.3 Total $ 467.9 $ 428.5 Other liabilities Deferred franchise fees - non-current $ 2.8 $ 3.9 The following table presents a rollforward of deferred gift card revenue: Twelve Months Ended (in millions) May 31, 2020 May 26, 2019 Beginning balance $ 453.6 $ 443.1 Activations 683.9 740.2 Redemptions and breakage (642.9 ) (729.7 ) Ending balance $ 494.6 $ 453.6 |
Impairments and Disposal of Ass
Impairments and Disposal of Assets, Net | 12 Months Ended |
May 31, 2020 | |
Asset Impairment Charges [Abstract] | |
Impairments and Disposal of Assets, Net | IMPAIRMENTS AND DISPOSAL OF ASSETS, NET Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings are comprised of the following: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Restaurant impairments $ 51.2 $ 19.5 $ 3.7 Disposal (gains) losses (2.4 ) (0.7 ) (1.1 ) Other 172.2 0.2 0.8 Impairments and disposal of assets, net $ 221.0 $ 19.0 $ 3.4 Restaurant impairments for fiscal 2020 were primarily related to the economic impact of COVID-19 on 11 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2020 and 9 other restaurants whose projected cash flows were not sufficient to cover their respective carrying values. Restaurant impairments for fiscal 2019 and fiscal 2018 were primarily related to underperforming restaurants. Disposal gains for fiscal 2020 were primarily related to a sale-leaseback, disposal of closed locations, and sale of liquor licenses. Disposal gains for 2019 and 2018 were primarily related to the sale of excess land parcels. Other impairment charges for fiscal 2020 were primarily related to a trademark impairment resulting from the economic impact of COVID-19 on Cheddar’s Scratch Kitchen forecasted sales. Other impairments for fiscal 2020 also included impairments due to inventory obsolescence and a receivable deemed uncollectible. |
Land, Buildings And Equipment,
Land, Buildings And Equipment, Net | 12 Months Ended |
May 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
Land, Buildings And Equipment, Net | LAND, BUILDINGS AND EQUIPMENT, NET The components of land, buildings and equipment, net, are as follows: (in millions) May 31, 2020 May 26, 2019 Land $ 126.5 $ 148.1 Buildings 3,082.2 2,985.1 Equipment 1,756.3 1,716.5 Assets under capital leases — 100.7 Assets under finance leases 278.0 — Construction in progress 154.8 84.8 Total land, buildings and equipment $ 5,397.8 $ 5,035.2 Less accumulated depreciation and amortization (2,598.0 ) (2,437.4 ) Less amortization associated with assets under capital leases — (45.2 ) Less amortization associated with assets under finance leases (42.9 ) — Land, buildings and equipment, net $ 2,756.9 $ 2,552.6 |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2020 | |
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 and Eddie V’s in North America as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business. The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. and Canada. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned The Capital Grille and Eddie V’s restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Cheddar’s Scratch Kitchen, Yard House, Seasons 52 and Bahama Breeze 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). During the first quarter of fiscal 2020, we changed our internal management reporting related to non-cash lease-related expenses, as these are expenses for which our operating segments are no longer being evaluated. This change reallocates non-cash lease-related expenses from our operating segments 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. Fiscal 2019 and fiscal 2018 segment profit and depreciation and amortization have been restated for comparability. For fiscal 2020, restaurant and marketing expenses includes approximately $43.7 million of costs, net of retention credits associated with the CARES Act, related to 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. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 31, 2020 and for the year ended Sales $ 4,013.8 $ 1,701.1 $ 541.1 $ 1,550.9 $ — $ 7,806.9 Restaurant and marketing expenses 3,281.0 1,439.2 452.8 1,413.6 49.9 6,636.5 Segment profit $ 732.8 $ 261.9 $ 88.3 $ 137.3 $ (49.9 ) $ 1,170.4 Depreciation and amortization $ 144.2 $ 68.4 $ 33.4 $ 101.0 $ 8.9 $ 355.9 Impairments and disposal of assets, net 3.4 1.8 11.5 171.3 33.0 221.0 Goodwill impairment — — — 169.2 — 169.2 Segment assets 2,757.5 1,830.0 1,251.3 2,902.0 1,205.3 9,946.1 Purchases of land, buildings and equipment 199.3 74.1 62.1 117.0 7.4 459.9 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 26, 2019 and for the year ended Sales $ 4,287.3 $ 1,810.6 $ 605.9 $ 1,806.6 $ — $ 8,510.4 Restaurant and marketing expenses 3,408.3 1,481.8 481.3 1,540.7 4.6 6,916.7 Segment profit $ 879.0 $ 328.8 $ 124.6 $ 265.9 $ (4.6 ) $ 1,593.7 Depreciation and amortization $ 140.8 $ 68.2 $ 29.6 $ 92.7 $ 5.4 $ 336.7 Impairments and disposal of assets, net 8.9 0.3 — 10.3 (0.5 ) 19.0 Segment assets 1,063.7 972.5 902.8 2,090.6 863.2 5,892.8 Purchases of land, buildings and equipment 187.3 65.6 49.1 147.2 2.8 452.0 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 27, 2018 and for the year ended Sales $ 4,082.5 $ 1,703.2 $ 574.4 $ 1,720.0 $ — $ 8,080.1 Restaurant and marketing expenses 3,266.9 1,396.0 460.2 1,455.7 8.2 6,587.0 Segment profit $ 815.6 $ 307.2 $ 114.2 $ 264.3 $ (8.2 ) $ 1,493.1 Depreciation and amortization $ 132.9 $ 65.7 $ 27.4 $ 81.7 $ 5.4 $ 313.1 Impairments and disposal of assets, net 2.0 1.5 0.1 — (0.2 ) 3.4 Purchases of land, buildings and equipment 163.4 76.1 32.1 119.5 4.9 396.0 Reconciliation of segment profit to earnings from continuing operations before income taxes: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Segment profit $ 1,170.4 $ 1,593.7 $ 1,493.1 Less general and administrative expenses (376.4 ) (405.5 ) (409.8 ) Less depreciation and amortization (355.9 ) (336.7 ) (313.1 ) Less impairments and disposal of assets, net (221.0 ) (19.0 ) (3.4 ) Less goodwill impairment (169.2 ) — — Less interest, net (57.3 ) (50.2 ) (161.1 ) Less other (income) expense, net (151.6 ) — — Earnings (loss) before income taxes $ (161.0 ) $ 782.3 $ 605.7 |
Debt
Debt | 12 Months Ended |
May 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The components of short-term debt are as follows: (in millions) May 31, 2020 May 26, 2019 Variable-rate term loan (3.750% at May 31, 2020) due April 2021 $ 270.0 $ — The components of long-term debt are as follows: (in millions) May 31, 2020 May 26, 2019 3.850% senior notes due May 2027 $ 500.0 $ 500.0 6.000% senior notes due August 2035 96.3 96.3 6.800% senior notes due October 2037 42.8 42.8 4.550% senior notes due February 2048 300.0 300.0 Total long-term debt $ 939.1 $ 939.1 Less unamortized discount and issuance costs (10.3 ) (11.4 ) Total long-term debt less unamortized discount and issuance costs $ 928.8 $ 927.7 The aggregate contractual maturities of long-term debt for each of the five fiscal years subsequent to May 31, 2020 , and thereafter are as follows: (in millions) Fiscal Year 2021 2022 2023 2024 2025 Thereafter Debt repayments $ — $ — $ — $ — $ — $ 939.1 We maintain a $750.0 million revolving credit agreement (Revolving Credit Agreement) with Bank of America, N.A. (BOA), as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. As of May 31, 2020 , we were in compliance with all covenants under the Revolving Credit Agreement. The Revolving Credit Agreement matures on October 27, 2022 , and the proceeds may be used for working capital and capital expenditures, the refinancing of certain indebtedness, certain acquisitions and general corporate purposes. Loans under the Revolving Credit Agreement bear interest at a rate of LIBOR plus a margin determined by reference to a ratings-based pricing grid (Applicable Margin), or the base rate (which is defined as the highest of the BOA prime rate plus 0.075 percent , the Federal Funds rate plus 0.500 percent , and the Eurocurrency Rate plus 1.075 percent ) plus the Applicable Margin. Assuming a “BBB-” equivalent credit rating level, the Applicable Margin under the Revolving Credit Agreement will be 1.075 percent for LIBOR loans and 0.075 percent for base rate loans. As of May 31, 2020 , we had no outstanding balances under the Revolving Credit Agreement. On April 6, 2020, we entered into a $270.0 million 364-day Term Loan Credit Agreement (the Term Loan Agreement) with BOA, as administrative agent, and the lenders and other agents party thereto. The Term Loan Agreement is a senior unsecured obligation of the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and a maximum consolidated total debt to total capitalization ratio of 0.75 to 1.00). The Term Loan Agreement also contains events of default customary for credit agreements of this type. The Term Loan Agreement was fully drawn on April 6, 2020 and matures on April 5, 2021 , and the proceeds may be used for working capital and capital expenditures, the refinancing of certain indebtedness, certain acquisitions and general corporate purposes. The Term Loan Agreement includes a covenant that we will not use the proceeds to pay any cash dividends to shareholders or to repurchase our common stock. The Term Loan Agreement also contains a provision that allows existing lenders to increase their loans, and additional lenders to join the Term Loan Agreement after the April 6, 2020 closing date and to make additional loans, up to a total principal amount of $370.0 million . Interest rates on borrowings under the Term Loan Agreement will be based on prevailing interest rates as described in the Term Loan Agreement and, in part, upon our credit ratings. Applicable interest rates under the Term Loan Agreement may be modified in the event of a change in the rating of our long-term senior unsecured debt. The applicable interest rate for this loan at May 31, 2020 was 3.750 percent . 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 31, 2020 |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 12 Months Ended |
May 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We use financial derivatives to manage commodity price, interest rate and equity-based compensation risks inherent in our business operations. By using these instruments, we expose ourselves, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. We minimize this credit risk by entering into transactions with high-quality counterparties. We currently do not have any provisions in our agreements with counterparties that would require either party to hold or post collateral in the event that the market value of the related derivative instrument exceeds a certain limit. As such, the maximum amount of loss due to counterparty credit risk we would incur at May 31, 2020 , if counterparties to the derivative instruments failed completely to perform, would approximate the values of derivative instruments currently recognized as assets on our consolidated balance sheet. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates, commodity prices or the market price of our common stock. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We periodically enter into commodity futures, swaps and option contracts (collectively, commodity contracts) to reduce the risk of variability in cash flows associated with fluctuations in the price we pay for commodities, such as natural gas and diesel fuel. For certain of our commodity purchases, changes in the price we pay for these commodities are highly correlated with changes in the market price of these commodities. For these commodity purchases, we designate commodity contracts as cash flow hedging instruments. For the remaining commodity purchases, changes in the price we pay for these commodities are not highly correlated with changes in the market price, generally due to the timing of when changes in the market prices are reflected in the price we pay. For these commodity purchases, we utilize these commodity contracts as economic hedges. Our commodity contracts currently extend through May 2021 . We enter into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested, unrecognized stock based awards we grant to certain employees (Darden stock units). The equity forward contracts will be settled at the end of the vesting periods of their underlying Darden stock units, which range between three and five years and currently extend through July 2024 . The contracts were initially designated as cash flow hedges to the extent the Darden stock units are unvested and, therefore, unrecognized as a liability in our financial statements. The forward contracts have net cash settlement terms and net settle every three months. As the Darden stock units vest, we will de-designate that portion of the equity forward contract that no longer qualifies for hedge accounting, and changes in fair value associated with that portion of the equity forward contract will be recognized in current earnings. We periodically incur interest on the notional value of the contracts and receive dividends on the underlying shares. These amounts are recognized currently in earnings as they are incurred or received. We enter into equity forward contracts to hedge the risk of changes in future cash flows associated with recognized, employee-directed investments in Darden stock within the non-qualified deferred compensation plan. We do 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 Darden stock investments in the non-qualified deferred compensation plan within general and administrative expenses in our consolidated statements of earnings. These contracts currently extend through September 2023 . The notional and fair values of our derivative contracts are as follows: 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 31, 2020 May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Equity Forwards Designated 0.2 $ 105.03 $ 25.4 $ 1.8 $ — $ — $ 0.3 Not designated 0.6 $ 84.33 $ 51.8 4.4 — — 0.5 Total equity forwards $ 6.2 $ — $ — $ 0.8 Commodity contracts Designated N/A N/A $ 16.1 $ 0.3 $ 0.1 $ 1.8 $ 0.1 Not designated N/A N/A $ 2.6 — — 0.3 — Total commodity contracts $ 0.3 $ 0.1 $ 2.1 $ 0.1 Total derivative contracts $ 6.5 $ 0.1 $ 2.1 $ 0.9 (1) Derivative assets and liabilities are included in receivables, net, and other current liabilities, as applicable, on our consolidated balance sheets. The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows: 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 31, 2020 May 26, 2019 May 27, 2018 May 31, 2020 May 26, 2019 May 27, 2018 Equity (1)(2) $ (15.5 ) $ 10.8 $ (5.3 ) $ 1.0 $ 4.9 $ (0.2 ) Commodity (3) (3.7 ) 0.2 0.9 (2.3 ) 0.7 0.3 Interest rate (4) — — — (0.1 ) (0.1 ) (0.1 ) Total $ (19.2 ) $ 11.0 $ (4.4 ) $ (1.4 ) $ 5.5 $ — (1) In fiscal 2020, location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses. (2) In fiscal 2019, location of the gain (loss) reclassified from AOCI to earnings is restaurant labor expenses and general and administrative expenses. (3) Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses. (4) Location of the gain (loss) reclassified from AOCI to earnings is interest, net. The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows: Amount of Gain (Loss) (in millions) Fiscal Year Ended Location of Gain (Loss) Recognized in Earnings on Derivatives May 31, 2020 May 26, 2019 May 27, 2018 Food and beverage costs and restaurant expenses $ 0.3 $ — $ — Restaurant labor expenses $ — $ 11.2 $ 1.5 General and administrative expenses (12.3 ) 14.6 2.1 Total $ (12.0 ) $ 25.8 $ 3.6 Based on the fair value of our derivative instruments designated as cash flow hedges as of May 31, 2020 , we expect to reclassify $2.0 million |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 31, 2020 | |
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 31, 2020 and May 26, 2019 : Items Measured at Fair Value at May 31, 2020 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Derivatives: Commodities futures, swaps & options (1) $ (1.8 ) $ — $ (1.8 ) $ — Equity forwards (2) 6.2 — 6.2 — Total $ 4.4 $ — $ 4.4 $ — Items Measured at Fair Value at May 26, 2019 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Derivatives: Equity forwards (2) $ (0.8 ) $ — $ (0.8 ) $ — Total $ (0.8 ) $ — $ (0.8 ) $ — (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. The carrying value and fair value of long-term debt, as of May 31, 2020 , was $928.8 million and $1.20 billion , respectively. The carrying value and fair value of long-term debt as of May 26, 2019 , was $927.7 million and $955.7 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 31, 2020 , operating lease right-of-use assets with a carrying amount of $24.2 million , primarily related to seven restaurants, were determined to have a fair value of $17.6 million resulting in an impairment of $6.6 million . 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 31, 2020 , long-lived assets held and used with a carrying amount of $35.1 million , primarily related to thirteen underperforming restaurants as well as two restaurants damaged by natural disasters, were determined to have a fair value of $0.2 million resulting in an impairment of $34.9 million . Also as of May 31, 2020, goodwill and trademarks for our Cheddar’s Scratch Kitchen brand with carrying values of $334.3 million and $375.1 million , respectively, were determined to have fair values of $165.1 million and $230.1 million , respectively, resulting in a total impairment of $314.2 million . As of May 26, 2019 , long-lived assets held and used with a carrying amount of $21.7 million , primarily related to seven underperforming restaurants, were determined to have a fair value of $2.5 million resulting in an impairment charge of $19.2 million |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
May 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Equity Offering On April 23, 2020, we issued 9,000,000 shares of Darden Common Stock, without par value in a public offering pursuant to the provisions of an underwriting agreement among Darden and Goldman Sachs & Co. LLC and BofA Securities, Inc., as representatives of the several underwriters. Cash proceeds of $505.1 million , net of underwriting discounts and direct transaction costs, were recorded to common stock. Share Repurchase Program All of the shares purchased during the fiscal year ended May 31, 2020 were purchased as part of our repurchase program authorized by our Board of Directors. On September 18, 2019 , our Board of Directors authorized a share repurchase program under which we may repurchase up to $500.0 million of our outstanding common stock. This repurchase program does not have an expiration and replaced the previously existing share repurchase authorization. Share Retirements As of May 31, 2020 , of the 196.2 million cumulative shares repurchased under the current and previous authorizations, 184.9 million shares were retired and restored to authorized but unissued shares of common stock. We expect that all shares of common stock acquired in the future will also be retired and restored to authorized but unissued shares of common stock. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), net of tax, are as follows: (in millions) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Derivatives Benefit Plan Funding Position Accumulated Other Comprehensive Income (Loss) Balances at May 27, 2018 $ (1.6 ) $ 3.4 $ (87.0 ) $ (85.2 ) Gain (loss) 0.6 11.0 (24.8 ) (13.2 ) Reclassification realized in net earnings — (5.4 ) 5.6 0.2 Balances at May 26, 2019 $ (1.0 ) $ 9.0 $ (106.2 ) $ (98.2 ) Gain (loss) 5.5 (18.3 ) (16.6 ) (29.4 ) Reclassification realized in net earnings — 0.7 109.3 110.0 Balances at May 31, 2020 $ 4.5 $ (8.6 ) $ (13.5 ) $ (17.6 ) The following table presents the amounts and line items in our consolidated statements of earnings where other adjustments reclassified from AOCI into net earnings were recorded: Fiscal Year Ended (in millions) AOCI Components Location of Gain (Loss) Recognized in Earnings May 31, May 26, Derivatives Commodity contracts (1) $ (2.3 ) $ 0.7 Equity contracts (2) 1.0 4.9 Interest rate contracts (3) (0.1 ) (0.1 ) Total before tax $ (1.4 ) $ 5.5 Tax benefit (expense) 0.7 (0.1 ) Net of tax $ (0.7 ) $ 5.4 Benefit plan funding position Pension/postretirement plans Actuarial losses (4) $ (148.9 ) $ (2.5 ) Total - pension/postretirement plans $ (148.9 ) $ (2.5 ) Recognized net actuarial gain - other plans (5) 3.3 3.3 Total before tax $ (145.6 ) $ 0.8 Tax benefit (expense) 36.3 (6.4 ) Net of tax $ (109.3 ) $ (5.6 ) (1) Primarily included in food and beverage costs and restaurant expenses. See Note 7 for additional details. (2) For fiscal 2020, included in general and administrative expenses. For fiscal 2019, included in restaurant labor costs and 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) |
Leases
Leases | 12 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES The components of lease expense for continuing operations in the consolidated statement of earnings for the fiscal year ended May 31, 2020 are as follows: (in millions) May 31, 2020 Operating lease expense $ 403.2 Finance lease expense Amortization of leased assets 8.9 Interest on lease liabilities 15.9 Variable lease expense 5.4 Total lease expense $ 433.4 The components of lease assets and liabilities on the consolidated balance sheet as of May 31, 2020 are as follows: (in millions) Balance Sheet Classification May 31, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 3,969.2 Finance lease right-of-use assets Land, buildings and equipment, net 235.2 Total lease assets, net $ 4,204.4 Operating lease liabilities - current Other current liabilities $ 160.6 Finance lease liabilities - current Other current liabilities 5.7 Operating lease liabilities - non-current Operating lease liabilities - non-current 4,276.3 Finance lease liabilities - non-current Other liabilities 368.4 Total lease liabilities $ 4,811.0 Supplemental cash flow information related to leases for the fiscal year ended May 31, 2020 : (in millions) May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 371.7 Operating cash flows from finance leases 15.9 Financing cash flows from finance leases 5.2 Right-of-use assets obtained in exchange for new operating lease liabilities 171.3 Right-of-use assets obtained in exchange for new finance lease liabilities 191.9 The weighted-average remaining lease terms and discount rates as of May 31, 2020 are as follows: (in millions) Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate (1) Operating leases 16.9 4.2 % Finance leases 20.6 4.8 % (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 31, 2020 are as follows: (in millions) Fiscal Year Operating Leases Finance Leases 2021 378.3 25.6 2022 386.3 26.8 2023 388.7 27.3 2024 391.3 27.5 2025 396.0 28.0 Thereafter 4,531.4 471.2 Total future lease commitments (1) $ 6,472.0 $ 606.4 Less imputed interest (2,035.1 ) (232.3 ) Present value of lease liabilities (2) $ 4,436.9 $ 374.1 (1) Of the $6.47 billion of total future operating lease commitments and $606.4 million of total future finance lease commitments, $2.94 billion and $323.5 million , respectively, are noncancelable. (2) Excludes approximately $114.2 million of net present value of lease payments related to 28 real estate leases signed, but not yet commenced. |
Leases | LEASES The components of lease expense for continuing operations in the consolidated statement of earnings for the fiscal year ended May 31, 2020 are as follows: (in millions) May 31, 2020 Operating lease expense $ 403.2 Finance lease expense Amortization of leased assets 8.9 Interest on lease liabilities 15.9 Variable lease expense 5.4 Total lease expense $ 433.4 The components of lease assets and liabilities on the consolidated balance sheet as of May 31, 2020 are as follows: (in millions) Balance Sheet Classification May 31, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 3,969.2 Finance lease right-of-use assets Land, buildings and equipment, net 235.2 Total lease assets, net $ 4,204.4 Operating lease liabilities - current Other current liabilities $ 160.6 Finance lease liabilities - current Other current liabilities 5.7 Operating lease liabilities - non-current Operating lease liabilities - non-current 4,276.3 Finance lease liabilities - non-current Other liabilities 368.4 Total lease liabilities $ 4,811.0 Supplemental cash flow information related to leases for the fiscal year ended May 31, 2020 : (in millions) May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 371.7 Operating cash flows from finance leases 15.9 Financing cash flows from finance leases 5.2 Right-of-use assets obtained in exchange for new operating lease liabilities 171.3 Right-of-use assets obtained in exchange for new finance lease liabilities 191.9 The weighted-average remaining lease terms and discount rates as of May 31, 2020 are as follows: (in millions) Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate (1) Operating leases 16.9 4.2 % Finance leases 20.6 4.8 % (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 31, 2020 are as follows: (in millions) Fiscal Year Operating Leases Finance Leases 2021 378.3 25.6 2022 386.3 26.8 2023 388.7 27.3 2024 391.3 27.5 2025 396.0 28.0 Thereafter 4,531.4 471.2 Total future lease commitments (1) $ 6,472.0 $ 606.4 Less imputed interest (2,035.1 ) (232.3 ) Present value of lease liabilities (2) $ 4,436.9 $ 374.1 (1) Of the $6.47 billion of total future operating lease commitments and $606.4 million of total future finance lease commitments, $2.94 billion and $323.5 million , respectively, are noncancelable. (2) Excludes approximately $114.2 million of net present value of lease payments related to 28 real estate leases signed, but not yet commenced. |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
May 31, 2020 | |
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 (in millions) May 31, 2020 May 26, 2019 Receivables, net Gift card sales $ 23.1 $ 40.2 Landlord allowances due — 24.0 Miscellaneous 27.9 24.4 Allowance for doubtful accounts (1.2 ) (0.3 ) Total $ 49.8 $ 88.3 Other Current Liabilities Non-qualified deferred compensation plan $ 242.5 $ 237.9 Sales and other taxes 50.4 70.0 Insurance-related 43.1 39.4 Employee benefits 42.2 45.5 Accrued interest 9.7 8.5 Lease liabilities - current 166.3 2.9 Miscellaneous 51.7 67.7 Total $ 605.9 $ 471.9 Statements of Earnings Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Interest, net Interest expense (1) $ 49.3 $ 44.3 $ 152.4 Imputed interest on capital and financing leases 15.9 11.9 11.4 Capitalized interest (3.0 ) (2.2 ) (1.9 ) Interest income (4.9 ) (3.8 ) (0.8 ) Total $ 57.3 $ 50.2 $ 161.1 (1) Interest expense in fiscal 2018 includes approximately $102.2 million of expenses associated with the retirement of long-term debt. Statements of Cash Flows Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Cash paid during the fiscal year for: Interest, net of amounts capitalized (1) $ 57.6 $ 50.8 $ 155.5 Income taxes, net of refunds $ 0.3 $ 23.7 $ 25.7 Non-cash investing and financing activities: Increase in land, buildings and equipment through accrued purchases $ 23.2 $ 38.3 $ 37.5 (1) Interest paid in fiscal 2018 includes approximately $97.3 million |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The CARES Act was enacted on March 27, 2020. In an effort to enhance liquidity for businesses, the CARES Act provides for, among other items, refundable employee retention tax credits and the deferral of the employer-paid portion of social security taxes. Additionally, the CARES Act includes provisions addressing technical amendments for accelerated tax depreciation on qualified improvement property (QIP). We expect to utilize the CARES Act provisions in the following ways: • We have elected to defer $24.8 million of our employer-paid portion of social security taxes. • We have estimated acceleration of $18.7 million in tax depreciation as a result of the technical amendments to QIP. We anticipate making an election to accelerate additional tax depreciation from QIP, which will be reflected in future periods when the election is made. • We intend to claim refundable employee retention tax credits of approximately $39.2 million . Total income tax expense (benefit) was allocated as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Earnings (loss) from continuing operations $ (111.8 ) $ 63.7 $ 1.9 Loss from discontinued operations (0.9 ) (1.8 ) (4.8 ) Total consolidated income tax expense (benefit) $ (112.7 ) $ 61.9 $ (2.9 ) The components of earnings (loss) from continuing operations before income taxes and the provision for income taxes thereon are as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Earnings (loss) from continuing operations before income taxes: U.S. $ (165.1 ) $ 780.7 $ 602.7 Foreign 4.1 1.6 3.0 Earnings (loss) from continuing operations before income taxes $ (161.0 ) $ 782.3 $ 605.7 Income taxes: Current: Federal $ 5.8 $ (7.2 ) $ 10.2 State and local 15.9 20.3 8.9 Foreign 1.0 1.4 1.8 Total current $ 22.7 $ 14.5 $ 20.9 Deferred (principally U.S.): Federal $ (109.0 ) $ 44.9 $ (25.1 ) State and local (25.5 ) 4.3 6.1 Total deferred $ (134.5 ) $ 49.2 $ (19.0 ) Total income tax expense (benefit) $ (111.8 ) $ 63.7 $ 1.9 The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings: Fiscal Year Ended May 31, 2020 May 26, 2019 May 27, 2018 U.S. statutory rate 21.0 % 21.0 % 29.4 % State and local income taxes, net of federal tax benefits 3.7 2.4 1.8 Enactment of the Tax Cuts and Jobs Act — — (13.1 ) Benefit of federal income tax credits 47.3 (10.8 ) (12.8 ) Stock-based compensation tax benefit 5.0 (2.0 ) (1.8 ) Nondeductible goodwill impairment (16.4 ) — — Deferred revaluation (1) 6.3 — — Other, net 2.5 (2.5 ) (3.2 ) Effective income tax rate (2) 69.4 % 8.1 % 0.3 % (1) In fiscal 2020, we amended tax returns that were subject to a 35.0 percent or 29.4 percent statutory rate. Corresponding deferred tax balances were revalued at 21.0 percent. (2) Our effective income tax rate of 69.4 percent for fiscal 2020 represents an income tax benefit as we generated a pre-tax loss from continuing operations in fiscal 2020, whereas our effective income tax rates of 8.1 percent and 0.3 percent for fiscal 2019 and 2018, respectively, represent income tax expense as we generated pre-tax income from continuing operations in fiscal 2019 and 2018. As of May 31, 2020 , we had estimated current prepaid state and federal income taxes of $7.4 million and $11.0 million , respectively, which is included on our accompanying consolidated balance sheets as prepaid income taxes and estimated current state income taxes payable of $6.2 million which is included on our accompanying consolidated balance sheets as accrued income taxes. As of May 31, 2020 , we had unrecognized tax benefits of $21.6 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 31, 2020 , is $6.2 million related to tax positions for which it is reasonably possible that the total amounts could change during the next 12 months based on the outcome of examinations. The $6.2 million relates to items that would impact our effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (in millions) Balances at May 26, 2019 $ 27.0 Additions related to current-year tax positions 4.1 Net reductions due to settlements with taxing authorities (7.3 ) Reductions to tax positions due to statute expiration (2.2 ) Balances at May 31, 2020 $ 21.6 Interest recorded on reserves for uncertain tax positions was included in income tax expense in our consolidated statements of earnings as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Interest recorded on unrecognized tax benefits $ 1.8 $ 1.5 $ 0.8 At May 31, 2020 , we had $2.1 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 2020, and state and local, or non-U.S. income tax examinations by tax authorities for years before fiscal 2016. The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: (in millions) May 31, 2020 May 26, 2019 Accrued liabilities $ 81.0 $ 69.2 Compensation and employee benefits 127.5 119.9 Deferred rent and interest income — 91.1 Lease liabilities 1,186.8 — Net operating loss, credit and charitable contribution carryforwards 117.3 75.3 Other 11.4 5.9 Gross deferred tax assets $ 1,524.0 $ 361.4 Valuation allowance (19.3 ) (29.7 ) Deferred tax assets, net of valuation allowance $ 1,504.7 $ 331.7 Trademarks and other acquisition related intangibles (164.4 ) (211.5 ) Buildings and equipment (263.7 ) (247.7 ) Capitalized software and other assets (25.7 ) (24.6 ) Lease assets (1,098.0 ) — Other (9.0 ) (4.8 ) Gross deferred tax liabilities $ (1,560.8 ) $ (488.6 ) Net deferred tax liabilities $ (56.1 ) $ (156.9 ) We have deferred tax assets of $15.4 million reflecting the benefit of state loss carryforwards, before federal benefit and valuation allowance, which expire at various dates between fiscal 2021 and fiscal 2039. We have deferred tax assets of $63.6 million of federal and $44.3 million state tax credits, before federal benefit and valuation allowance, which expire at various dates between fiscal 2020 and fiscal 2040. 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 31, 2020 . |
Retirement Plans
Retirement Plans | 12 Months Ended |
May 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS Defined Benefit Plans and Postretirement Benefit Plan As of December 2014, our non-contributory defined benefit pension plans were frozen and no additional benefits accrued for participants (except for continuing interest credits for eligible participants in the Cash Balance formula). In April 2018, our Benefit Plans Committee approved the termination of our primary non-contributory defined benefit pension plan (the Retirement Income Plan for Darden Restaurants, Inc.). Plan participants who had not yet begun receiving their benefit payments were provided the opportunity to receive their full accrued benefits from plan assets by either (i) electing immediate lump sum distributions or annuities or (ii) deferring commencement of their benefits to a later date. During fiscal 2020, we made a funding contribution of approximately $12.7 million to fully fund the benefit obligation. As of May 31, 2020, all of the plan assets were either (i) distributed to settle the benefits for participants who selected the lump sum option or (ii) transferred to a third-party annuity provider for all other eligible participants. The settlement of the benefit obligation to plan participants in fiscal 2020 resulted in a pre-tax pension settlement charge of $145.5 million recorded in other (income) expense, net in our consolidated statement of earnings. We also 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. 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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Defined benefit pension plans funding (1) $ 13.2 $ 0.4 $ 60.8 Postretirement benefit plan funding 1.3 1.3 1.2 (1) Fundings for fiscal 2018 include voluntary funding contributions of $60.4 million . We expect to contribute approximately $0.4 million to our remaining defined benefit pension plan and approximately $1.3 million to our postretirement benefit plan during fiscal 2021 . 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 31, 2020 and May 26, 2019 : Defined Benefit Plans Postretirement Benefit Plan (in millions) May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Change in Benefit Obligation: Benefit obligation at beginning of period $ 252.0 $ 237.2 $ 19.8 $ 19.9 Service cost — — 0.1 0.1 Interest cost 3.3 9.3 0.7 0.8 Benefits paid (1) (272.2 ) (17.8 ) (1.3 ) (1.3 ) Actuarial (gain) loss 21.9 23.3 1.6 0.3 Benefit obligation at end of period (2) $ 5.0 $ 252.0 $ 20.9 $ 19.8 Change in Plan Assets: Fair value at beginning of period $ 248.5 $ 253.8 $ — $ — Actual return on plan assets 10.5 12.1 — — Employer contributions 13.2 0.4 1.3 1.3 Benefits paid (1) (272.2 ) (17.8 ) (1.3 ) (1.3 ) Fair value at end of period $ — $ 248.5 $ — $ — Funded (unfunded) status at end of period $ (5.0 ) $ (3.5 ) $ (20.9 ) $ (19.8 ) (1) Fiscal 2020 includes $271.8 million of benefits paid in accordance with the termination of our primary non-contributory defined benefit pension plan. (2) Remaining defined benefit plan obligation as of May 31, 2020, relates to a supplemental defined benefit pension plan, which is an unfunded nonqualified plan separate from our primary pension plan which was settled in fiscal 2020. The supplemental plan is frozen and therefore no longer accruing benefits for participants. 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): Defined Benefit Plans Postretirement Benefit Plan (in millions) May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Components of the Consolidated Balance Sheets: Current liabilities $ — $ — $ 1.3 $ 1.4 Noncurrent (assets) liabilities 5.0 3.5 19.6 18.4 Net amounts recognized $ 5.0 $ 3.5 $ 20.9 $ 19.8 Amounts Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Prior service credit $ — $ — $ 0.2 $ 3.8 Net actuarial gain (loss) (1.6 ) (100.4 ) (8.8 ) (8.7 ) Net amounts recognized $ (1.6 ) $ (100.4 ) $ (8.6 ) $ (4.9 ) The following is a summary of our accumulated and projected benefit obligations for our defined benefit plans: (in millions) May 31, 2020 May 26, 2019 Accumulated benefit obligation for all defined benefit plans $ 5.0 $ 252.0 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 5.0 252.0 Fair value of plan assets — 248.5 Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets 5.0 252.0 The following table presents the weighted-average assumptions used to determine benefit obligations and net expense: Defined Benefit Plans Postretirement Benefit Plan May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Weighted-average assumptions used to determine benefit obligations at May 31 and May 26 (1) Discount rate 2.58 % 2.66 % 2.98 % 3.95 % Rate of future compensation increases N/A N/A N/A N/A Weighted-average assumptions used to determine net expense for fiscal years ended May 31 and May 26 (2) Discount rate 3.70 % 4.32 % 3.95 % 4.28 % Expected long-term rate of return on plan assets — % 4.25 % N/A N/A Rate of future compensation increases N/A N/A N/A N/A (1) Determined as of the end of fiscal year. (2) Determined as of the beginning of fiscal year. We set the discount rate assumption annually for each of the plans at their valuation dates to reflect the yield of high-quality fixed-income debt instruments, with lives that approximate the maturity of the plan benefits. Additionally, for our mortality assumption as of fiscal year end, we selected the most recent Pri-2012 mortality tables and MP-2019 mortality improvement scale to measure the benefit obligations. The expected long-term rate of return on plan assets is based upon several factors, including our historical assumptions compared with actual results, an analysis of current market conditions, asset fund allocations and the views of leading financial advisers and economists. Our expected long-term rate of return on plan assets for our defined benefit plans was 4.25 percent in fiscal 2019 and 0.00 percent for fiscal 2020. Components of net periodic benefit cost included in earnings are as follows: Defined Benefit Plans Postretirement Benefit Plan Fiscal Year Ended Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 May 31, 2020 May 26, 2019 May 27, 2018 Service cost $ — $ — $ — $ 0.1 $ 0.1 $ 0.1 Interest cost 3.3 9.3 8.6 0.7 0.8 0.7 Expected return on plan assets (4.0 ) (11.2 ) (12.0 ) — — — Amortization of unrecognized prior service cost — — — (4.8 ) (4.8 ) (4.8 ) Recognized net actuarial loss 1.8 2.5 2.8 1.5 1.5 1.7 Settlement loss recognized 145.5 — — — — — Net pension and postretirement cost (benefit) $ 146.6 $ 0.6 $ (0.6 ) $ (2.5 ) $ (2.4 ) $ (2.3 ) The amortization of the net actuarial gain (loss) component of our fiscal 2021 net periodic benefit cost for the remaining defined benefit plan and postretirement benefit plan is expected to be approximately $0.1 million and $1.3 million , respectively. The fair values of the defined benefit pension plans assets at their measurement date of May 26, 2019 , are as follows: Items Measured at Fair Value at May 26, 2019 (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) Fixed-Income: Global Fixed-Income Commingled Funds (1) $ 163.8 $ — $ 163.8 $ — Cash and Accruals 84.7 84.7 — — Total $ 248.5 $ 84.7 $ 163.8 $ — (1) Global fixed-income commingled funds are comprised of investments in U.S. and non-U.S. government fixed-income securities. Investments are valued using a unit price or net asset value (NAV) based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. The following benefit payments are expected to be paid between fiscal 2021 and fiscal 2030 : (in millions) Defined Benefit Plan Postretirement Benefit Plan 2021 $ 0.4 $ 1.3 2022 0.4 1.3 2023 0.4 1.3 2024 0.4 1.3 2025 0.4 1.3 2026-2030 1.7 6.2 Defined Contribution Plan We have a defined contribution (401(k)) plan (Darden Savings Plan) covering most employees age 21 and older. We match contributions for participants with at least one year of service up to 6 percent of compensation, based on our performance. The match ranges from a minimum of $0.25 to $1.20 for each dollar contributed by the participant. The 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 $870.2 million at May 31, 2020 , and $947.9 million at May 26, 2019 . Expense recognized in fiscal 2020 , 2019 and 2018 was $19.9 million , $26.1 million and $19.6 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 $242.5 million and $237.9 million at May 31, 2020 and May 26, 2019 , respectively. These amounts are included in other current liabilities on our accompanying consolidated balance sheets. The Darden Savings Plan includes a leveraged Employee Stock Ownership Plan (ESOP). The ESOP borrowed $16.9 million from us at a variable rate of interest in July 1996 and was fully repaid during fiscal 2020 . Compensation expense is recognized as contributions are accrued. Fluctuations in our stock price impact the amount of expense to be recognized. Contributions to the Darden Savings Plan, plus the dividends accumulated on unallocated shares held by the ESOP, were used to pay principal, interest and expenses of the Darden Savings Plan. As loan payment were made, common stock was allocated to ESOP participants. In each of the fiscal years 2020 , 2019 and 2018 , the ESOP used dividends received of $0.2 million , $0.2 million and $0.5 million , respectively, and contributions received from us of $0.5 million , $1.0 million and $0.1 million |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 31, 2020 | |
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 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. There are outstanding awards under the Prior Plans that may still vest and be exercised in accordance with their terms. As of May 31, 2020 , approximately 1.2 million shares may be issued under outstanding awards that were granted under the Prior Plans. Stock-based compensation expense included in continuing operations was as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Stock options $ 6.1 $ 5.0 $ 4.6 Restricted stock/restricted stock units 8.0 6.1 3.9 Darden stock units 19.6 33.0 20.1 Equity-settled performance-based restricted stock units 16.1 12.9 11.7 Employee stock purchase plan 1.8 1.5 1.3 Director compensation program/other 1.4 1.3 1.2 Total $ 53.0 $ 59.8 $ 42.8 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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Income tax benefits $ 10.0 $ 19.5 $ 12.0 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: Granted in Fiscal Year Ended May 31, 2020 May 26, 2019 May 27, 2018 Weighted-average fair value $ 19.94 $ 18.78 $ 14.63 Dividend yield 3.0 % 3.2 % 3.0 % Expected volatility of stock 22.5 % 22.6 % 23.5 % Risk-free interest rate 1.9 % 2.9 % 2.0 % Expected option life (in years) 6.3 6.4 6.4 Weighted-average exercise price per share $ 124.24 $ 107.05 $ 85.83 The following table presents a summary of our stock option activity as of and for the year ended May 31, 2020 : Options (in millions) Weighted-Average Exercise Price Per Share Weighted-Average Aggregate Intrinsic Value Outstanding beginning of period 2.60 $62.5 6.22 $149.9 Options granted 0.31 124.24 Options exercised (0.28) 43.84 Options canceled (0.01) 101.93 Outstanding end of period 2.62 $71.77 5.87 $41.7 Exercisable 1.40 $50.2 4.23 $37.4 The total intrinsic value of options exercised during fiscal 2020 , 2019 and 2018 was $21.3 million , $83.5 million and $43.1 million , respectively. Cash received from option exercises during fiscal 2020 , 2019 and 2018 was $12.4 million , $52.2 million and $32.0 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 31, 2020 , there was $8.8 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 2.4 years . The total fair value of stock options that vested during fiscal 2020 was $6.1 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 amortized over their service periods which generally range from one to four years . Restrictions with regard to restricted stock and RSUs lapse at the end of their service periods at which employees receive unrestricted shares of Darden stock. The following table presents a summary of our restricted stock and RSU activity as of and for the fiscal year ended May 31, 2020 : Shares (in millions) Weighted-Average Grant Date Fair Outstanding beginning of period 0.28 $85.67 Shares granted 0.07 122.92 Shares vested (0.06) 68.71 Shares canceled (0.01) 95.81 Outstanding end of period 0.28 $99.44 As of May 31, 2020 , there was $9.4 million of unrecognized compensation cost related to unvested restricted stock and RSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 1.6 years . The total fair value of restricted stock and RSUs that vested during fiscal 2020 , 2019 and 2018 was $4.6 million , $2.3 million and $2.9 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 three 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 entered into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested, unrecognized Darden stock units granted (see Note 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 31, 2020 : (All units settled in cash) Units (in millions) Weighted-Average Fair Value Per Unit Outstanding beginning of period 1.20 $120.13 Units granted 0.19 124.22 Units vested (0.29) 122.17 Units canceled (0.07) 89.82 Outstanding end of period 1.03 $76.86 As of May 31, 2020 , our total Darden stock unit liability was $49.1 million , including $27.7 million recorded in other current liabilities and $21.4 million recorded in other liabilities on our consolidated balance sheets. As of May 26, 2019 , our total Darden stock unit liability was $80.6 million , including $30.7 million recorded in other current liabilities and $49.9 million recorded in other liabilities on our consolidated balance sheets. Based on the value of our common stock as of May 31, 2020 , there was $30.7 million of unrecognized compensation cost related to Darden stock units granted under our incentive plans. This cost is expected to be recognized over a weighted-average period of 2.3 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 2020 was $33.9 million . Relative total shareholder return PRSUs and absolute PRSUs vest over the service period which ranges from three 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. Relative total shareholder return PRSUs, which 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 amortized over the service period. Absolute PRSUs, which vest based on the achievement of company specific targets, are measured based on a value equal to the market price of our common stock on the date of grant, and 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 amortized over the service periods which generally range from two to five years . The weighted-average grant date fair value of PRSUs and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows: Granted in Fiscal Year Ended May 31, 2020 May 26, 2019 May 27, 2018 Dividend yield (1) 0.0 % 0.0 % 0.0 % Expected volatility of stock 23.1 % 23.4 % 21.5 % Risk-free interest rate 1.8 % 2.7 % 1.5 % Expected option life (in years) 2.9 2.9 2.9 Weighted-average grant date fair value per unit $ 98.16 $ 100.72 $ 90.51 (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 31, 2020 : Units (in millions) Weighted-Average Outstanding beginning of period 0.60 $84.11 Units granted 0.18 98.16 Units vested (0.22) 62.17 Units canceled (0.01) 84.90 Outstanding end of period 0.55 $97.03 As of May 31, 2020 , there was $19.3 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 2.1 years. The total fair value of equity-settled PRSUs that vested during fiscal 2020 was $13.4 million . We maintain an Employee Stock Purchase Plan to provide eligible employees who have completed one year of service (excluding senior officers subject to Section 16(b) of the Securities Exchange Act of 1934, and certain other employees who are employed less than full time or own 5 percent or more of our capital stock or that of any subsidiary) an opportunity to invest up to $5.0 thousand per calendar quarter to purchase shares of our common stock, subject to certain limitations. Under the plan, up to an aggregate of 5.2 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 2020 , 2019 and 2018 was $8.3 million , $7.1 million and $5.8 million |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
May 31, 2020 | |
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 31, 2020 and May 26, 2019 , we had $65.2 million and $75.9 million , respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. At May 31, 2020 and May 26, 2019 , we had $44.0 million and $21.6 million , respectively, of surety bonds related to other payments. Most surety bonds are renewable annually. At May 31, 2020 and May 26, 2019 , we had $151.5 million and $151.6 million , respectively, of guarantees associated with leased properties that have been assigned to third parties. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of these potential payments discounted at our weighted-average cost of capital at May 31, 2020 and May 26, 2019 , amounted to $122.4 million and $123.2 million , respectively. We did not record a liability for the guarantees, as the likelihood of the third parties defaulting on the assignment agreements was deemed to be remote. In the event of default by a third party, the indemnity and default clauses in our assignment agreements govern our ability to recover from and pursue the third party for damages incurred as a result of its default. We do not hold any third-party assets as collateral related to these assignment agreements, except to the extent that the assignment allows us to repossess the building and personal property. These guarantees expire over their respective lease terms, which range from fiscal 2021 through fiscal 2035 . |
Subsequent Event
Subsequent Event | 12 Months Ended |
May 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT During the first quarter of fiscal 2021, employees that met certain eligibility criteria had the opportunity to opt into a voluntary early retirement incentive program. In addition to this program, we will be separating with other employees on both a voluntary and involuntary basis during the first quarter of fiscal 2021. We expect to record expenses during the first quarter of |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
May 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Data (Unaudited) | QUARTERLY DATA (UNAUDITED) The following table summarizes unaudited quarterly data for fiscal 2020 and fiscal 2019 : Fiscal 2020 - Quarters Ended (in millions, except per share data) Aug. 25 Nov. 24 (1) Feb. 23 May 31 (2) Total (3) Sales $ 2,133.9 $ 2,056.4 $ 2,346.5 $ 1,270.1 $ 7,806.9 Earnings (loss) before income taxes 190.4 (6.2 ) 265.1 (610.3 ) (161.0 ) Earnings (loss) from continuing operations 171.8 25.4 233.3 (479.7 ) (49.2 ) Losses from discontinued operations, net of tax (1.2 ) (0.7 ) (1.0 ) (0.3 ) (3.2 ) Net earnings (loss) 170.6 24.7 232.3 (480.0 ) (52.4 ) Basic net earnings per share: Earnings (loss) from continuing operations 1.40 0.21 1.92 (3.85 ) (0.40 ) Losses from discontinued operations (0.01 ) (0.01 ) — (0.01 ) (0.03 ) Net earnings (loss) 1.39 0.20 1.92 (3.86 ) (0.43 ) Diluted net earnings per share: Earnings (loss) from continuing operations 1.38 0.21 1.90 (3.85 ) (0.40 ) Losses from discontinued operations (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) Net earnings (loss) 1.37 0.20 1.89 (3.86 ) (0.43 ) Fiscal 2019 - Quarters Ended (in millions, except per share data) Aug. 26 Nov. 25 Feb. 24 May 26 Total Sales $ 2,061.4 $ 1,973.4 $ 2,246.5 $ 2,229.1 $ 8,510.4 Earnings before income taxes 176.0 135.3 253.1 217.9 782.3 Earnings from continuing operations 168.9 115.9 225.1 208.7 718.6 Losses from discontinued operations, net of tax (2.7 ) (0.3 ) (1.5 ) (0.7 ) (5.2 ) Net earnings 166.2 115.6 223.6 208.0 713.4 Basic net earnings per share: Earnings from continuing operations 1.36 0.94 1.83 1.70 5.82 Losses from discontinued operations (0.02 ) (0.01 ) (0.02 ) (0.01 ) (0.04 ) Net earnings 1.34 0.93 1.81 1.69 5.78 Diluted net earnings per share: Earnings from continuing operations 1.34 0.92 1.80 1.67 5.73 Losses from discontinued operations (0.02 ) — (0.01 ) — (0.04 ) Net earnings 1.32 0.92 1.79 1.67 5.69 (1) The quarter ended November 24, 2019 included a pre-tax pension settlement charge of $147.1 million . (2) The quarter ended May 31, 2020 consisted of 14 weeks while all other quarters consisted of 13 weeks. Additionally, the quarter ended May 31, 2020 included impairment charges of $390.0 million related to the economic impact of COVID-19. (3) The year ended May 31, 2020 consisted of 53 weeks while the year ended May 26, 2019 consisted of 52 weeks. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Operations and Principles of Consolidation | The accompanying consolidated financial statements include the operations of Darden Restaurants, Inc. and its wholly owned subsidiaries (Darden, the Company, we, us or our). We own and operate the Olive Garden ® , LongHorn Steakhouse ® , Cheddar’s Scratch Kitchen ® , Yard House ® , The Capital Grille ® , Seasons 52 ® , Bahama Breeze ® and Eddie V’s Prime Seafood ® 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 3 joint venture restaurants managed by us and 30 franchised restaurants. We also have 32 franchised restaurants in operation located in Latin America and the Middle East. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | For fiscal 2020 , 2019 and 2018 , 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 In March 2020, the COVID-19 outbreak was declared a national public health emergency resulting in a significant reduction in guest traffic at our restaurants due to changes in consumer behavior as public health officials encouraged social distancing and state and local governments mandated restrictions including suspension of dine-in operations, reduced restaurant seating capacity, table spacing requirements, bar closures and additional physical barriers. Through the first three quarters of fiscal 2020, our financial results were strong as sales from continuing operations for the first nine months of fiscal 2020 increased over the prior year period. The COVID-19 pandemic negatively impacted this strong performance, and for most of the fourth quarter of fiscal 2020, we operated with all of our dining rooms closed and served our guests in a To Go only or To Go and delivery format. Our sales for the fourth quarter of fiscal 2020 declined compared to the fourth quarter of fiscal 2019. As we continue to navigate through the pandemic, we have taken significant steps to adapt our business to allow us to continue to serve guests, support our team members and secure our liquidity position to provide financial flexibility, including: • Modifying our business operations in order to continue serving guests at our restaurants as safely and effectively as possible, including, initially transitioning all restaurant locations to a To Go only or To Go and delivery model; • Reducing or eliminating fixed costs in our restaurants and restaurant support center as well as eliminating or delaying most nonessential capital spending; • Furloughing a substantial number of hourly restaurant employees as a result of the closure of our dining rooms and reduction in sales; • Protecting our team members’ safety and wellbeing, including sourcing additional sanitation supplies and personal protective equipment, implementing paid sick leave for all hourly restaurant team members, providing a $75.0 million emergency pay program and covering $4.1 million of health and welfare insurance premiums for furloughed team members; • Suspending the quarterly cash dividend, with the intention of reviewing our dividend policy as developments warrant; • Fully drawing on our $750.0 million Revolving Credit Agreement, which was subsequently repaid in May 2020; • Securing a $270.0 million term loan; • Raising $505.1 million in net proceeds from a follow-on equity offering; • Suspending our share repurchase activity; and • Implementing a careful, phased reopening of our dining rooms where permitted by local regulations. The impact on our operating results as well as the operational and financial measures we have implemented in response to the COVID-19 pandemic have been included throughout this document. As a result of the economic impact of the COVID-19 pandemic, during the fourth quarter of fiscal 2020, we recorded non-cash impairment charges of $390.0 million related to a portion of our goodwill, other indefinite-lived intangible assets, and other assets. See “Goodwill and Intangible Assets” section below and Note 3 for additional information. Additionally, on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in the United States. The provisions of the CARES Act provide for, among other items, refundable employee retention tax credits for which we intend to claim approximately $39.2 million related to our emergency pay program mentioned above. See Note 12 for additional information. 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 2020 , which ended May 31, 2020 , consisted of 53 weeks. Fiscal 2019 , which ended May 26, 2019 , consisted of 52 weeks and fiscal 2018 , which ended May 27, 2018 , 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 |
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 7 to 40 years using the straight-line method. Leasehold improvements, which are reflected on our consolidated balance sheets as a component of buildings in land, buildings and equipment, net, are amortized over the lesser of the expected lease term 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 undepreciated book value associated with the replacement of equipment in the normal course of business is recorded as a component of restaurant expenses in our accompanying consolidated statements of |
Capitalized Software Costs and Other Definite-Lived Intangibles | Capitalized Software Costs and Other Definite-Lived Intangibles Capitalized software, which is a component of other assets, is recorded at cost less accumulated amortization. Capitalized software is amortized using the straight-line method over estimated useful lives ranging from 3 to 10 years. The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 31, 2020 May 26, 2019 Capitalized software $ 227.9 $ 221.6 Accumulated amortization (159.7 ) (146.9 ) Capitalized software, net of accumulated amortization $ 68.2 $ 74.7 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. Additionally, prior to the adoption of FASB ASC Topic 842 in fiscal 2020, we had definite-lived intangible assets and liabilities related to the value of below-market leases and above-market leases, respectively, resulting from our acquisitions. Upon adoption of FASB ASC Topic 842, we derecognized those definite-lived intangible assets and liabilities and adjusted the carrying amount of the lease right-of-use asset by the corresponding amount. Definite-lived intangibles are amortized on a straight-line basis over estimated useful lives of 1 to 20 years. The cost and related accumulated amortization was as follows: (in millions) May 31, 2020 May 26, 2019 Definite-lived intangible assets $ 23.8 $ 80.3 Accumulated amortization (6.4 ) (30.4 ) Definite-lived intangible assets, net of accumulated amortization $ 17.4 $ 49.9 Definite-lived intangible liabilities $ (3.0 ) $ (33.5 ) Accumulated amortization 0.9 13.6 Definite-lived intangible liabilities, net of accumulated amortization $ (2.1 ) $ (19.9 ) 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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Amortization expense - capitalized software $ 25.7 $ 26.7 $ 23.5 Amortization expense - other definite-lived intangibles 3.4 1.2 0.8 Amortization expense from continuing operations associated with above- and-below-market leases included in restaurant expenses as a component of rent expense in our consolidated statements of earnings was as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Restaurant expense - below-market leases $ — $ 3.0 $ 3.1 Restaurant expense - above-market leases — (1.6 ) (1.7 ) Based on the net book values of our definite-lived intangible assets and liabilities at May 31, 2020 , we expect amortization of capitalized software and other definite-lived intangible assets will be approximately $25.0 million annually for fiscal 2021 through 2025 . |
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 eight reporting units, six of which have goodwill and seven of which have trademarks. Goodwill and trademarks are not subject to amortization and have been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. 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 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 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 results and cash flows that are discounted using a weighted-average cost of capital that reflects current market conditions. We recognize an 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 our annual long-range plan; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate. We recognize an impairment loss when the estimated fair value of the trademark is less than its carrying value. We performed our annual impairment test of our goodwill and trademarks as of February 24, 2020 which was the first day of our fiscal 2020 fourth quarter. As of February 24, 2020, no impairment of goodwill or trademarks was indicated based on our testing. However, subsequent to our annual test date, we identified indicators of impairment due to the COVID-19 pandemic, including but not limited to stock price volatility in general, the volatility of our stock price as well as our competitors, the significant decline in our market capitalization, declining sales at our restaurants and the challenging environment for the restaurant industry due to the mandated suspension of dine-in operations and other restrictions such as table spacing requirements. Due to the indicators that were present throughout our fourth quarter, we deemed it more likely than not that an impairment may have occurred in both our goodwill and trademark balances and performed impairment testing as of May 31, 2020 to determine if the fair values were less than their carrying values. Due to the economic impact of COVID-19 on Darden’s overall market capitalization and the impact on Cheddar’s Scratch Kitchen projected sales and cash flows, we determined that both the estimated fair values of the trademark and the reporting unit for Cheddar’s Scratch Kitchen were less than their carrying values. As a result, we recorded in our fiscal 2020 fourth quarter pre-tax non-cash impairment charges of $145.0 million and $169.2 million related to the Cheddar’s Scratch Kitchen trademark and goodwill balances, respectively. The fair value of our remaining reporting units exceeded their carrying values by at least 30 percent and the trademark fair value of our remaining reporting units exceeded their carrying values by at least 40 percent . We evaluate the useful lives of our other intangible assets to determine if they are definite or indefinite-lived. A determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Land, buildings and equipment, 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 impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined based on appraisals, sales prices of comparable assets or discounted future net cash flows expected to be generated by the assets. Restaurant sites and certain other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell, 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. Additionally, at the date we cease using a property, we adjust the lease liability for the net present value of any remaining lease obligations, net of estimated sublease income. Any subsequent adjustments to the lease liability as a result of lease termination or changes in estimates of sublease income are recorded in the period incurred. Upon disposal of the assets, primarily land, associated with a closed restaurant, any gain or loss is recorded in the same caption within our consolidated statements of earnings as the original impairment. See Note 3 for additional information. |
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 equity forwards 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 In April 2020, the FASB issued additional guidance on the application of FASB ASC Topic 842, Leases, for lease concessions related to the effects of COVID-19. We have elected to apply the practical expedient outlined in the question-and-answer to account for COVID-19 related lease concessions as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. This has been applied to lease contracts in which the lease concessions did not result in a substantial increase in the lease obligation. We have elected the remeasurement consistent with resolving a contingency approach which allows us to remeasure the lease liability and recognize the amount of change in the lease liability as an adjustment to the carrying amount of the associated right-of-use asset. The total net aggregate of those adjustments was less than $1.0 million for fiscal 2020. 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. 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 |
Net Earnings per Share | Net Earnings per Share Basic net earnings per share are computed by dividing net earnings by the weighted-average number of common shares outstanding for the reporting period. Diluted net earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Outstanding stock options, restricted stock and equity-settled performance stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding. These stock-based compensation instruments do not impact the numerator of the diluted net earnings per share computation. |
Foreign Currency | Foreign Currency The Canadian dollar is the functional currency for our Canadian restaurant operations. 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 $(1.0) million at May 31, 2020 and May 26, 2019 , respectively. Net gains (losses) from foreign currency transactions recognized in our consolidated statements of earnings were $(0.2) million , $(1.0) million and $1.2 million for fiscal 2020 , 2019 and 2018 , respectively. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards As of May 27, 2019, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) (ASC 842) which replaced existing lease guidance with comprehensive lease measurement and recognition guidance and expanded disclosure requirements. This new guidance requires lessees to recognize on the balance sheet a liability based on the present value of minimum lease payments and a corresponding right-of-use asset. Our balance sheet presentation was impacted upon adoption of this guidance by approximately $4.00 billion due to the recognition of right-of-use assets and approximately $4.41 billion due to the recognition of lease liabilities for operating leases. The right-of-use assets recorded at transition included the impact of deferred rent of approximately $359.1 million and lease incentives of approximately $111.6 million . We adopted this guidance using the modified retrospective transition method which means we did not adjust the balance sheet for comparative periods but recorded a $3.8 million cumulative-effect adjustment to retained earnings as of May 27, 2019. We elected the package of practical expedients which allowed us to not reassess previous accounting conclusions regarding lease identification, lease classification and initial direct costs. We elected the land easement practical expedient which allowed us to not evaluate our existing land easements for lease accounting treatment. We elected the short-term lease recognition exemption which provided the option to not recognize right-of-use assets and related liabilities that arise from certain leases with terms of 12 months or less. We also elected the accounting policy election to not separate lease and non-lease components for real estate leases entered into after adoption. See Note 10. As of May 27, 2019, we adopted FASB ASU 2017-12, Derivatives and Hedging (Topic 815). The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The adoption of this guidance did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This update aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for us in the first quarter of fiscal 2021, however, we elected to early adopt this guidance during the quarter ended November 25, 2018, using a prospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). To simplify the subsequent measurement of goodwill, this update eliminates Step 2 from the goodwill impairment test which means an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity performs its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. This update is effective for us in the first quarter of fiscal 2021. In order to simplify our impairment testing for fiscal 2020, we elected to early adopt this guidance during the quarter ended May 31, 2020 using a prospective approach. Application of New Accounting Standards In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The amendments in this update require entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings. The guidance in this update impacts, among other items, how a company determines its allowance for doubtful accounts as well as liabilities associated with financial guarantees related to assigned leases. We remain contingently liable for lease payments under certain restaurant leases related to dispositions. This guidance is effective for us during the first quarter of fiscal 2021 and we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The components of cash and cash equivalents are as follows: (in millions) May 31, 2020 May 26, 2019 Short-term investments $ 673.5 $ 319.5 Credit card receivables 64.0 108.2 Depository accounts 25.8 29.6 Total cash and cash equivalents $ 763.3 $ 457.3 |
Depreciation And Amortization Expense From Continuing Operations Related To Land, Buildings And Equipment | Depreciation and amortization expense from continuing operations associated with buildings and equipment and losses on replacement of equipment were as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Depreciation and amortization on buildings and equipment $ 326.8 $ 308.8 $ 288.8 Losses on replacement of equipment 2.4 3.6 4.1 |
Capitalized Software Costs And Related Accumulated Amortization | The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 31, 2020 May 26, 2019 Capitalized software $ 227.9 $ 221.6 Accumulated amortization (159.7 ) (146.9 ) Capitalized software, net of accumulated amortization $ 68.2 $ 74.7 |
Costs And Accumulated Amortization Of Acquired Definite-Lived Intangible Assets | The cost and related accumulated amortization was as follows: (in millions) May 31, 2020 May 26, 2019 Definite-lived intangible assets $ 23.8 $ 80.3 Accumulated amortization (6.4 ) (30.4 ) Definite-lived intangible assets, net of accumulated amortization $ 17.4 $ 49.9 Definite-lived intangible liabilities $ (3.0 ) $ (33.5 ) Accumulated amortization 0.9 13.6 Definite-lived intangible liabilities, net of accumulated amortization $ (2.1 ) $ (19.9 ) |
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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Amortization expense - capitalized software $ 25.7 $ 26.7 $ 23.5 Amortization expense - other definite-lived intangibles 3.4 1.2 0.8 |
Amortization Expense Related To Acquired Definite-Lived Intangible Assets | Amortization expense from continuing operations associated with above- and-below-market leases included in restaurant expenses as a component of rent expense in our consolidated statements of earnings was as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Restaurant expense - below-market leases $ — $ 3.0 $ 3.1 Restaurant expense - above-market leases — (1.6 ) (1.7 ) |
Goodwill And Trademark Balances | Our goodwill and trademark balances are allocated as follows: Goodwill Trademarks (in millions) May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Olive Garden $ 30.2 $ 30.2 $ 0.7 $ 0.7 LongHorn Steakhouse 49.3 49.3 307.8 307.8 Cheddar’s Scratch Kitchen (1)(2) 165.1 311.4 230.1 375.0 Yard House 369.2 369.2 109.3 109.3 The Capital Grille 401.6 401.6 147.0 147.0 Seasons 52 — — 0.5 0.5 Eddie V’s 22.0 22.0 10.5 10.5 Total $ 1,037.4 $ 1,183.7 $ 805.9 $ 950.8 (1) During fiscal 2020, goodwill related to Cheddar’s Scratch Kitchen decreased $169.2 million due to an impairment charge and increased $22.9 million due to acquisitions of previously franchised locations. (2) |
Basic And Diluted Earnings Per Common Share | The following table presents the computation of basic and diluted net earnings per common share: Fiscal Year Ended (in millions, except per share data) May 31, 2020 May 26, 2019 May 27, 2018 Earnings (loss) from continuing operations $ (49.2 ) $ 718.6 $ 603.8 Losses from discontinued operations (3.2 ) (5.2 ) (7.8 ) Net earnings (loss) $ (52.4 ) $ 713.4 $ 596.0 Average common shares outstanding – Basic 122.7 123.5 124.0 Effect of dilutive stock-based compensation — 1.9 2.0 Average common shares outstanding – Diluted 122.7 125.4 126.0 Basic net earnings per share: Earnings (loss) from continuing operations $ (0.40 ) $ 5.82 $ 4.87 Losses from discontinued operations (0.03 ) (0.04 ) (0.06 ) Net earnings (loss) $ (0.43 ) $ 5.78 $ 4.81 Diluted net earnings per share: Earnings (loss) from continuing operations $ (0.40 ) $ 5.73 $ 4.79 Losses from discontinued operations (0.03 ) (0.04 ) (0.06 ) Net earnings (loss) $ (0.43 ) $ 5.69 $ 4.73 |
Restricted Stock And Options To Purchase Shares Of Common Stock Excluded From Calculation Of Diluted Earnings Per Share | Stock options, restricted stock 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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Anti-dilutive stock-based compensation awards 2.0 0.3 0.3 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
May 31, 2020 | |
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: (in millions) May 31, 2020 May 26, 2019 Unearned revenues Deferred gift card revenue $ 494.6 $ 453.6 Deferred gift card discounts (28.2 ) (26.4 ) Other 1.5 1.3 Total $ 467.9 $ 428.5 Other liabilities Deferred franchise fees - non-current $ 2.8 $ 3.9 The following table presents a rollforward of deferred gift card revenue: Twelve Months Ended (in millions) May 31, 2020 May 26, 2019 Beginning balance $ 453.6 $ 443.1 Activations 683.9 740.2 Redemptions and breakage (642.9 ) (729.7 ) Ending balance $ 494.6 $ 453.6 |
Impairments and Disposal of A_2
Impairments and Disposal of Assets, Net (Tables) | 12 Months Ended |
May 31, 2020 | |
Asset Impairment Charges [Abstract] | |
Impairments and Disposal of Assets | Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings are comprised of the following: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Restaurant impairments $ 51.2 $ 19.5 $ 3.7 Disposal (gains) losses (2.4 ) (0.7 ) (1.1 ) Other 172.2 0.2 0.8 Impairments and disposal of assets, net $ 221.0 $ 19.0 $ 3.4 |
Land, Buildings And Equipment_2
Land, Buildings And Equipment, Net (Tables) | 12 Months Ended |
May 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
Components Of Land, Buildings And Equipment, Net | The components of land, buildings and equipment, net, are as follows: (in millions) May 31, 2020 May 26, 2019 Land $ 126.5 $ 148.1 Buildings 3,082.2 2,985.1 Equipment 1,756.3 1,716.5 Assets under capital leases — 100.7 Assets under finance leases 278.0 — Construction in progress 154.8 84.8 Total land, buildings and equipment $ 5,397.8 $ 5,035.2 Less accumulated depreciation and amortization (2,598.0 ) (2,437.4 ) Less amortization associated with assets under capital leases — (45.2 ) Less amortization associated with assets under finance leases (42.9 ) — Land, buildings and equipment, net $ 2,756.9 $ 2,552.6 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 31, 2020 and for the year ended Sales $ 4,013.8 $ 1,701.1 $ 541.1 $ 1,550.9 $ — $ 7,806.9 Restaurant and marketing expenses 3,281.0 1,439.2 452.8 1,413.6 49.9 6,636.5 Segment profit $ 732.8 $ 261.9 $ 88.3 $ 137.3 $ (49.9 ) $ 1,170.4 Depreciation and amortization $ 144.2 $ 68.4 $ 33.4 $ 101.0 $ 8.9 $ 355.9 Impairments and disposal of assets, net 3.4 1.8 11.5 171.3 33.0 221.0 Goodwill impairment — — — 169.2 — 169.2 Segment assets 2,757.5 1,830.0 1,251.3 2,902.0 1,205.3 9,946.1 Purchases of land, buildings and equipment 199.3 74.1 62.1 117.0 7.4 459.9 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 26, 2019 and for the year ended Sales $ 4,287.3 $ 1,810.6 $ 605.9 $ 1,806.6 $ — $ 8,510.4 Restaurant and marketing expenses 3,408.3 1,481.8 481.3 1,540.7 4.6 6,916.7 Segment profit $ 879.0 $ 328.8 $ 124.6 $ 265.9 $ (4.6 ) $ 1,593.7 Depreciation and amortization $ 140.8 $ 68.2 $ 29.6 $ 92.7 $ 5.4 $ 336.7 Impairments and disposal of assets, net 8.9 0.3 — 10.3 (0.5 ) 19.0 Segment assets 1,063.7 972.5 902.8 2,090.6 863.2 5,892.8 Purchases of land, buildings and equipment 187.3 65.6 49.1 147.2 2.8 452.0 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 27, 2018 and for the year ended Sales $ 4,082.5 $ 1,703.2 $ 574.4 $ 1,720.0 $ — $ 8,080.1 Restaurant and marketing expenses 3,266.9 1,396.0 460.2 1,455.7 8.2 6,587.0 Segment profit $ 815.6 $ 307.2 $ 114.2 $ 264.3 $ (8.2 ) $ 1,493.1 Depreciation and amortization $ 132.9 $ 65.7 $ 27.4 $ 81.7 $ 5.4 $ 313.1 Impairments and disposal of assets, net 2.0 1.5 0.1 — (0.2 ) 3.4 Purchases of land, buildings and equipment 163.4 76.1 32.1 119.5 4.9 396.0 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliation of segment profit to earnings from continuing operations before income taxes: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Segment profit $ 1,170.4 $ 1,593.7 $ 1,493.1 Less general and administrative expenses (376.4 ) (405.5 ) (409.8 ) Less depreciation and amortization (355.9 ) (336.7 ) (313.1 ) Less impairments and disposal of assets, net (221.0 ) (19.0 ) (3.4 ) Less goodwill impairment (169.2 ) — — Less interest, net (57.3 ) (50.2 ) (161.1 ) Less other (income) expense, net (151.6 ) — — Earnings (loss) before income taxes $ (161.0 ) $ 782.3 $ 605.7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
May 31, 2020 | |
Debt Disclosure [Abstract] | |
Components of Short-Term Debt | The components of short-term debt are as follows: (in millions) May 31, 2020 May 26, 2019 Variable-rate term loan (3.750% at May 31, 2020) due April 2021 $ 270.0 $ — |
Components of Long-Term Debt | The components of long-term debt are as follows: (in millions) May 31, 2020 May 26, 2019 3.850% senior notes due May 2027 $ 500.0 $ 500.0 6.000% senior notes due August 2035 96.3 96.3 6.800% senior notes due October 2037 42.8 42.8 4.550% senior notes due February 2048 300.0 300.0 Total long-term debt $ 939.1 $ 939.1 Less unamortized discount and issuance costs (10.3 ) (11.4 ) Total long-term debt less unamortized discount and issuance costs $ 928.8 $ 927.7 |
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 31, 2020 , and thereafter are as follows: (in millions) Fiscal Year 2021 2022 2023 2024 2025 Thereafter Debt repayments $ — $ — $ — $ — $ — $ 939.1 |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities (Tables) | 12 Months Ended |
May 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments | The notional and fair values of our derivative contracts are as follows: 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 31, 2020 May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Equity Forwards Designated 0.2 $ 105.03 $ 25.4 $ 1.8 $ — $ — $ 0.3 Not designated 0.6 $ 84.33 $ 51.8 4.4 — — 0.5 Total equity forwards $ 6.2 $ — $ — $ 0.8 Commodity contracts Designated N/A N/A $ 16.1 $ 0.3 $ 0.1 $ 1.8 $ 0.1 Not designated N/A N/A $ 2.6 — — 0.3 — Total commodity contracts $ 0.3 $ 0.1 $ 2.1 $ 0.1 Total derivative contracts $ 6.5 $ 0.1 $ 2.1 $ 0.9 (1) Derivative assets and liabilities are included in receivables, net, and other current liabilities, as applicable, on our consolidated balance sheets. |
Cash Flow Hedges | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Effects Of Derivative Instruments | The effects of derivative instruments in cash flow hedging relationships in the consolidated statements of earnings are as follows: 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 31, 2020 May 26, 2019 May 27, 2018 May 31, 2020 May 26, 2019 May 27, 2018 Equity (1)(2) $ (15.5 ) $ 10.8 $ (5.3 ) $ 1.0 $ 4.9 $ (0.2 ) Commodity (3) (3.7 ) 0.2 0.9 (2.3 ) 0.7 0.3 Interest rate (4) — — — (0.1 ) (0.1 ) (0.1 ) Total $ (19.2 ) $ 11.0 $ (4.4 ) $ (1.4 ) $ 5.5 $ — (1) In fiscal 2020, location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses. (2) In fiscal 2019, location of the gain (loss) reclassified from AOCI to earnings is restaurant labor expenses and general and administrative expenses. (3) Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses. (4) Location of the gain (loss) reclassified from AOCI to earnings is interest, net. |
Not Designated As Hedging Instrument | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Effects Of Derivative Instruments | The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings are as follows: Amount of Gain (Loss) (in millions) Fiscal Year Ended Location of Gain (Loss) Recognized in Earnings on Derivatives May 31, 2020 May 26, 2019 May 27, 2018 Food and beverage costs and restaurant expenses $ 0.3 $ — $ — Restaurant labor expenses $ — $ 11.2 $ 1.5 General and administrative expenses (12.3 ) 14.6 2.1 Total $ (12.0 ) $ 25.8 $ 3.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 31, 2020 | |
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 31, 2020 and May 26, 2019 : Items Measured at Fair Value at May 31, 2020 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Derivatives: Commodities futures, swaps & options (1) $ (1.8 ) $ — $ (1.8 ) $ — Equity forwards (2) 6.2 — 6.2 — Total $ 4.4 $ — $ 4.4 $ — Items Measured at Fair Value at May 26, 2019 (in millions) Fair Value of Assets (Liabilities) Quoted Prices Significant Significant Unobservable Inputs (Level 3) Derivatives: Equity forwards (2) $ (0.8 ) $ — $ (0.8 ) $ — Total $ (0.8 ) $ — $ (0.8 ) $ — (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. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
May 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), net of tax, are as follows: (in millions) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Derivatives Benefit Plan Funding Position Accumulated Other Comprehensive Income (Loss) Balances at May 27, 2018 $ (1.6 ) $ 3.4 $ (87.0 ) $ (85.2 ) Gain (loss) 0.6 11.0 (24.8 ) (13.2 ) Reclassification realized in net earnings — (5.4 ) 5.6 0.2 Balances at May 26, 2019 $ (1.0 ) $ 9.0 $ (106.2 ) $ (98.2 ) Gain (loss) 5.5 (18.3 ) (16.6 ) (29.4 ) Reclassification realized in net earnings — 0.7 109.3 110.0 Balances at May 31, 2020 $ 4.5 $ (8.6 ) $ (13.5 ) $ (17.6 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the amounts and line items in our consolidated statements of earnings where other adjustments reclassified from AOCI into net earnings were recorded: Fiscal Year Ended (in millions) AOCI Components Location of Gain (Loss) Recognized in Earnings May 31, May 26, Derivatives Commodity contracts (1) $ (2.3 ) $ 0.7 Equity contracts (2) 1.0 4.9 Interest rate contracts (3) (0.1 ) (0.1 ) Total before tax $ (1.4 ) $ 5.5 Tax benefit (expense) 0.7 (0.1 ) Net of tax $ (0.7 ) $ 5.4 Benefit plan funding position Pension/postretirement plans Actuarial losses (4) $ (148.9 ) $ (2.5 ) Total - pension/postretirement plans $ (148.9 ) $ (2.5 ) Recognized net actuarial gain - other plans (5) 3.3 3.3 Total before tax $ (145.6 ) $ 0.8 Tax benefit (expense) 36.3 (6.4 ) Net of tax $ (109.3 ) $ (5.6 ) (1) Primarily included in food and beverage costs and restaurant expenses. See Note 7 for additional details. (2) For fiscal 2020, included in general and administrative expenses. For fiscal 2019, included in restaurant labor costs and 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 general and administrative expenses. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expenses | Supplemental cash flow information related to leases for the fiscal year ended May 31, 2020 : (in millions) May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 371.7 Operating cash flows from finance leases 15.9 Financing cash flows from finance leases 5.2 Right-of-use assets obtained in exchange for new operating lease liabilities 171.3 Right-of-use assets obtained in exchange for new finance lease liabilities 191.9 The components of lease expense for continuing operations in the consolidated statement of earnings for the fiscal year ended May 31, 2020 are as follows: (in millions) May 31, 2020 Operating lease expense $ 403.2 Finance lease expense Amortization of leased assets 8.9 Interest on lease liabilities 15.9 Variable lease expense 5.4 Total lease expense $ 433.4 |
Components of Lease Assets and Liabilities | The weighted-average remaining lease terms and discount rates as of May 31, 2020 are as follows: (in millions) Weighted-Average Remaining Lease Term (Years) Weighted-Average Discount Rate (1) Operating leases 16.9 4.2 % Finance leases 20.6 4.8 % (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 components of lease assets and liabilities on the consolidated balance sheet as of May 31, 2020 are as follows: (in millions) Balance Sheet Classification May 31, 2020 Operating lease right-of-use assets Operating lease right-of-use assets $ 3,969.2 Finance lease right-of-use assets Land, buildings and equipment, net 235.2 Total lease assets, net $ 4,204.4 Operating lease liabilities - current Other current liabilities $ 160.6 Finance lease liabilities - current Other current liabilities 5.7 Operating lease liabilities - non-current Operating lease liabilities - non-current 4,276.3 Finance lease liabilities - non-current Other liabilities 368.4 Total lease liabilities $ 4,811.0 |
Maturities of Operating Lease Liabilities | The annual maturities of our lease liabilities as of May 31, 2020 are as follows: (in millions) Fiscal Year Operating Leases Finance Leases 2021 378.3 25.6 2022 386.3 26.8 2023 388.7 27.3 2024 391.3 27.5 2025 396.0 28.0 Thereafter 4,531.4 471.2 Total future lease commitments (1) $ 6,472.0 $ 606.4 Less imputed interest (2,035.1 ) (232.3 ) Present value of lease liabilities (2) $ 4,436.9 $ 374.1 (1) Of the $6.47 billion of total future operating lease commitments and $606.4 million of total future finance lease commitments, $2.94 billion and $323.5 million , respectively, are noncancelable. (2) Excludes approximately $114.2 million of net present value of lease payments related to 28 real estate leases signed, but not yet commenced. |
Maturities of Financing Lease Liabilities | The annual maturities of our lease liabilities as of May 31, 2020 are as follows: (in millions) Fiscal Year Operating Leases Finance Leases 2021 378.3 25.6 2022 386.3 26.8 2023 388.7 27.3 2024 391.3 27.5 2025 396.0 28.0 Thereafter 4,531.4 471.2 Total future lease commitments (1) $ 6,472.0 $ 606.4 Less imputed interest (2,035.1 ) (232.3 ) Present value of lease liabilities (2) $ 4,436.9 $ 374.1 (1) Of the $6.47 billion of total future operating lease commitments and $606.4 million of total future finance lease commitments, $2.94 billion and $323.5 million , respectively, are noncancelable. (2) Excludes approximately $114.2 million of net present value of lease payments related to 28 real estate leases signed, but not yet commenced. |
Schedule of Rent Expense | Rent expense incurred related to continuing operations for fiscal 2019 and fiscal 2018 is as follows: Fiscal Year Ended (in millions) May 26, 2019 May 27, 2018 Restaurant minimum rent $ 338.3 $ 321.8 Restaurant rent averaging expense 27.6 30.2 Restaurant percentage rent 7.3 7.2 Other 20.3 20.6 Total rent expense $ 393.5 $ 379.8 |
Schedule Of Future Minimum Lease Payments For Capital And Operating Leases | The annual future lease commitments under capital lease and financing lease obligations and noncancelable operating leases, including those related to restaurants reported as discontinued operations, for each of the five fiscal years subsequent to May 26, 2019 and thereafter is as follows: (in millions) Fiscal Year Capital Financing Operating 2020 $ 8.9 $ 12.2 $ 372.9 2021 8.9 12.4 355.0 2022 8.8 12.6 326.7 2023 8.9 12.8 299.8 2024 8.7 13.0 262.7 Thereafter 81.4 128.0 1,434.0 Total future lease commitments $ 125.6 $ 191.0 $ 3,051.1 Less imputed interest (at 6.5%), (various) (41.6 ) (99.7 ) Present value of future lease commitments $ 84.0 $ 91.3 Less current maturities (4.1 ) (2.7 ) Obligations under capital and financing leases, net of current maturities $ 79.9 $ 88.6 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 12 Months Ended |
May 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Receivables From Various Parties | Balance Sheets (in millions) May 31, 2020 May 26, 2019 Receivables, net Gift card sales $ 23.1 $ 40.2 Landlord allowances due — 24.0 Miscellaneous 27.9 24.4 Allowance for doubtful accounts (1.2 ) (0.3 ) Total $ 49.8 $ 88.3 Other Current Liabilities Non-qualified deferred compensation plan $ 242.5 $ 237.9 Sales and other taxes 50.4 70.0 Insurance-related 43.1 39.4 Employee benefits 42.2 45.5 Accrued interest 9.7 8.5 Lease liabilities - current 166.3 2.9 Miscellaneous 51.7 67.7 Total $ 605.9 $ 471.9 |
Components Of Other Current Liabilities | Balance Sheets (in millions) May 31, 2020 May 26, 2019 Receivables, net Gift card sales $ 23.1 $ 40.2 Landlord allowances due — 24.0 Miscellaneous 27.9 24.4 Allowance for doubtful accounts (1.2 ) (0.3 ) Total $ 49.8 $ 88.3 Other Current Liabilities Non-qualified deferred compensation plan $ 242.5 $ 237.9 Sales and other taxes 50.4 70.0 Insurance-related 43.1 39.4 Employee benefits 42.2 45.5 Accrued interest 9.7 8.5 Lease liabilities - current 166.3 2.9 Miscellaneous 51.7 67.7 Total $ 605.9 $ 471.9 |
Components Of Interest | Statements of Earnings Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Interest, net Interest expense (1) $ 49.3 $ 44.3 $ 152.4 Imputed interest on capital and financing leases 15.9 11.9 11.4 Capitalized interest (3.0 ) (2.2 ) (1.9 ) Interest income (4.9 ) (3.8 ) (0.8 ) Total $ 57.3 $ 50.2 $ 161.1 (1) Interest expense in fiscal 2018 includes approximately $102.2 million of expenses associated with the retirement of long-term debt. |
Schedule of Cash Flow, Supplemental Disclosures | Statements of Cash Flows Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Cash paid during the fiscal year for: Interest, net of amounts capitalized (1) $ 57.6 $ 50.8 $ 155.5 Income taxes, net of refunds $ 0.3 $ 23.7 $ 25.7 Non-cash investing and financing activities: Increase in land, buildings and equipment through accrued purchases $ 23.2 $ 38.3 $ 37.5 (1) Interest paid in fiscal 2018 includes approximately $97.3 million of payments associated with the retirement of long-term debt. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Allocation Of Total Income Tax Expense | Total income tax expense (benefit) was allocated as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Earnings (loss) from continuing operations $ (111.8 ) $ 63.7 $ 1.9 Loss from discontinued operations (0.9 ) (1.8 ) (4.8 ) Total consolidated income tax expense (benefit) $ (112.7 ) $ 61.9 $ (2.9 ) |
Components Of Earnings Before Income Tax And Provision For Income Taxes | The components of earnings (loss) from continuing operations before income taxes and the provision for income taxes thereon are as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Earnings (loss) from continuing operations before income taxes: U.S. $ (165.1 ) $ 780.7 $ 602.7 Foreign 4.1 1.6 3.0 Earnings (loss) from continuing operations before income taxes $ (161.0 ) $ 782.3 $ 605.7 Income taxes: Current: Federal $ 5.8 $ (7.2 ) $ 10.2 State and local 15.9 20.3 8.9 Foreign 1.0 1.4 1.8 Total current $ 22.7 $ 14.5 $ 20.9 Deferred (principally U.S.): Federal $ (109.0 ) $ 44.9 $ (25.1 ) State and local (25.5 ) 4.3 6.1 Total deferred $ (134.5 ) $ 49.2 $ (19.0 ) Total income tax expense (benefit) $ (111.8 ) $ 63.7 $ 1.9 |
Effective Income Tax Rate Reconciliation | The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings: Fiscal Year Ended May 31, 2020 May 26, 2019 May 27, 2018 U.S. statutory rate 21.0 % 21.0 % 29.4 % State and local income taxes, net of federal tax benefits 3.7 2.4 1.8 Enactment of the Tax Cuts and Jobs Act — — (13.1 ) Benefit of federal income tax credits 47.3 (10.8 ) (12.8 ) Stock-based compensation tax benefit 5.0 (2.0 ) (1.8 ) Nondeductible goodwill impairment (16.4 ) — — Deferred revaluation (1) 6.3 — — Other, net 2.5 (2.5 ) (3.2 ) Effective income tax rate (2) 69.4 % 8.1 % 0.3 % (1) In fiscal 2020, we amended tax returns that were subject to a 35.0 percent or 29.4 percent statutory rate. Corresponding deferred tax balances were revalued at 21.0 percent. (2) Our effective income tax rate of 69.4 percent for fiscal 2020 represents an income tax benefit as we generated a pre-tax loss from continuing operations in fiscal 2020, whereas our effective income tax rates of 8.1 percent and 0.3 percent |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (in millions) Balances at May 26, 2019 $ 27.0 Additions related to current-year tax positions 4.1 Net reductions due to settlements with taxing authorities (7.3 ) Reductions to tax positions due to statute expiration (2.2 ) Balances at May 31, 2020 $ 21.6 |
Interest Expense On Unrecognized Tax Benefits | Interest recorded on reserves for uncertain tax positions was included in income tax expense in our consolidated statements of earnings as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Interest recorded on unrecognized tax benefits $ 1.8 $ 1.5 $ 0.8 |
Tax Effects On Deferred Tax Assets And Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: (in millions) May 31, 2020 May 26, 2019 Accrued liabilities $ 81.0 $ 69.2 Compensation and employee benefits 127.5 119.9 Deferred rent and interest income — 91.1 Lease liabilities 1,186.8 — Net operating loss, credit and charitable contribution carryforwards 117.3 75.3 Other 11.4 5.9 Gross deferred tax assets $ 1,524.0 $ 361.4 Valuation allowance (19.3 ) (29.7 ) Deferred tax assets, net of valuation allowance $ 1,504.7 $ 331.7 Trademarks and other acquisition related intangibles (164.4 ) (211.5 ) Buildings and equipment (263.7 ) (247.7 ) Capitalized software and other assets (25.7 ) (24.6 ) Lease assets (1,098.0 ) — Other (9.0 ) (4.8 ) Gross deferred tax liabilities $ (1,560.8 ) $ (488.6 ) Net deferred tax liabilities $ (56.1 ) $ (156.9 ) |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
May 31, 2020 | |
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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Defined benefit pension plans funding (1) $ 13.2 $ 0.4 $ 60.8 Postretirement benefit plan funding 1.3 1.3 1.2 (1) Fundings for fiscal 2018 include voluntary funding contributions of $60.4 million . |
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 31, 2020 and May 26, 2019 : Defined Benefit Plans Postretirement Benefit Plan (in millions) May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Change in Benefit Obligation: Benefit obligation at beginning of period $ 252.0 $ 237.2 $ 19.8 $ 19.9 Service cost — — 0.1 0.1 Interest cost 3.3 9.3 0.7 0.8 Benefits paid (1) (272.2 ) (17.8 ) (1.3 ) (1.3 ) Actuarial (gain) loss 21.9 23.3 1.6 0.3 Benefit obligation at end of period (2) $ 5.0 $ 252.0 $ 20.9 $ 19.8 |
Change In Plan Assets | Change in Plan Assets: Fair value at beginning of period $ 248.5 $ 253.8 $ — $ — Actual return on plan assets 10.5 12.1 — — Employer contributions 13.2 0.4 1.3 1.3 Benefits paid (1) (272.2 ) (17.8 ) (1.3 ) (1.3 ) Fair value at end of period $ — $ 248.5 $ — $ — |
Reconciliation Of The Plan's Funded Status | Funded (unfunded) status at end of period $ (5.0 ) $ (3.5 ) $ (20.9 ) $ (19.8 ) |
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): Defined Benefit Plans Postretirement Benefit Plan (in millions) May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Components of the Consolidated Balance Sheets: Current liabilities $ — $ — $ 1.3 $ 1.4 Noncurrent (assets) liabilities 5.0 3.5 19.6 18.4 Net amounts recognized $ 5.0 $ 3.5 $ 20.9 $ 19.8 Amounts Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Prior service credit $ — $ — $ 0.2 $ 3.8 Net actuarial gain (loss) (1.6 ) (100.4 ) (8.8 ) (8.7 ) Net amounts recognized $ (1.6 ) $ (100.4 ) $ (8.6 ) $ (4.9 ) |
Accumulated Benefit Obligations In Excess Of Plan Assets | The following is a summary of our accumulated and projected benefit obligations for our defined benefit plans: (in millions) May 31, 2020 May 26, 2019 Accumulated benefit obligation for all defined benefit plans $ 5.0 $ 252.0 Pension plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 5.0 252.0 Fair value of plan assets — 248.5 Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets 5.0 252.0 |
Weighted-Average Assumptions Used | The following table presents the weighted-average assumptions used to determine benefit obligations and net expense: Defined Benefit Plans Postretirement Benefit Plan May 31, 2020 May 26, 2019 May 31, 2020 May 26, 2019 Weighted-average assumptions used to determine benefit obligations at May 31 and May 26 (1) Discount rate 2.58 % 2.66 % 2.98 % 3.95 % Rate of future compensation increases N/A N/A N/A N/A Weighted-average assumptions used to determine net expense for fiscal years ended May 31 and May 26 (2) Discount rate 3.70 % 4.32 % 3.95 % 4.28 % Expected long-term rate of return on plan assets — % 4.25 % N/A N/A Rate of future compensation increases N/A N/A N/A N/A (1) Determined as of the end of fiscal year. (2) Determined as of the beginning of fiscal year. |
Components Of Net Periodic Benefit Cost | Components of net periodic benefit cost included in earnings are as follows: Defined Benefit Plans Postretirement Benefit Plan Fiscal Year Ended Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 May 31, 2020 May 26, 2019 May 27, 2018 Service cost $ — $ — $ — $ 0.1 $ 0.1 $ 0.1 Interest cost 3.3 9.3 8.6 0.7 0.8 0.7 Expected return on plan assets (4.0 ) (11.2 ) (12.0 ) — — — Amortization of unrecognized prior service cost — — — (4.8 ) (4.8 ) (4.8 ) Recognized net actuarial loss 1.8 2.5 2.8 1.5 1.5 1.7 Settlement loss recognized 145.5 — — — — — Net pension and postretirement cost (benefit) $ 146.6 $ 0.6 $ (0.6 ) $ (2.5 ) $ (2.4 ) $ (2.3 ) |
Fair Values Of Defined Benefit Pension Plans Assets | The fair values of the defined benefit pension plans assets at their measurement date of May 26, 2019 , are as follows: Items Measured at Fair Value at May 26, 2019 (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) Fixed-Income: Global Fixed-Income Commingled Funds (1) $ 163.8 $ — $ 163.8 $ — Cash and Accruals 84.7 84.7 — — Total $ 248.5 $ 84.7 $ 163.8 $ — (1) Global fixed-income commingled funds are comprised of investments in U.S. and non-U.S. government fixed-income securities. Investments are valued using a unit price or net asset value (NAV) based on the fair value of the underlying investments of the fund. There are no redemption restrictions associated with this fund. |
Expected Benefit Payments | The following benefit payments are expected to be paid between fiscal 2021 and fiscal 2030 : (in millions) Defined Benefit Plan Postretirement Benefit Plan 2021 $ 0.4 $ 1.3 2022 0.4 1.3 2023 0.4 1.3 2024 0.4 1.3 2025 0.4 1.3 2026-2030 1.7 6.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2020 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |
Recognized Stock-Based Compensation Expense | Stock-based compensation expense included in continuing operations was as follows: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Stock options $ 6.1 $ 5.0 $ 4.6 Restricted stock/restricted stock units 8.0 6.1 3.9 Darden stock units 19.6 33.0 20.1 Equity-settled performance-based restricted stock units 16.1 12.9 11.7 Employee stock purchase plan 1.8 1.5 1.3 Director compensation program/other 1.4 1.3 1.2 Total $ 53.0 $ 59.8 $ 42.8 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: Fiscal Year Ended (in millions) May 31, 2020 May 26, 2019 May 27, 2018 Income tax benefits $ 10.0 $ 19.5 $ 12.0 |
Summary Of Stock Option Activity | The following table presents a summary of our stock option activity as of and for the year ended May 31, 2020 : Options (in millions) Weighted-Average Exercise Price Per Share Weighted-Average Aggregate Intrinsic Value Outstanding beginning of period 2.60 $62.5 6.22 $149.9 Options granted 0.31 124.24 Options exercised (0.28) 43.84 Options canceled (0.01) 101.93 Outstanding end of period 2.62 $71.77 5.87 $41.7 Exercisable 1.40 $50.2 4.23 $37.4 |
Summary Of Restricted Stock And RSU Activity | The following table presents a summary of our restricted stock and RSU activity as of and for the fiscal year ended May 31, 2020 : Shares (in millions) Weighted-Average Grant Date Fair Outstanding beginning of period 0.28 $85.67 Shares granted 0.07 122.92 Shares vested (0.06) 68.71 Shares canceled (0.01) 95.81 Outstanding end of period 0.28 $99.44 |
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 31, 2020 : (All units settled in cash) Units (in millions) Weighted-Average Fair Value Per Unit Outstanding beginning of period 1.20 $120.13 Units granted 0.19 124.22 Units vested (0.29) 122.17 Units canceled (0.07) 89.82 Outstanding end of period 1.03 $76.86 |
Non-qualified stock options | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |
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: Granted in Fiscal Year Ended May 31, 2020 May 26, 2019 May 27, 2018 Weighted-average fair value $ 19.94 $ 18.78 $ 14.63 Dividend yield 3.0 % 3.2 % 3.0 % Expected volatility of stock 22.5 % 22.6 % 23.5 % Risk-free interest rate 1.9 % 2.9 % 2.0 % Expected option life (in years) 6.3 6.4 6.4 Weighted-average exercise price per share $ 124.24 $ 107.05 $ 85.83 |
Equity-settled performance-based restricted stock units | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |
Stock-Based Compensation | The weighted-average grant date fair value of PRSUs and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows: Granted in Fiscal Year Ended May 31, 2020 May 26, 2019 May 27, 2018 Dividend yield (1) 0.0 % 0.0 % 0.0 % Expected volatility of stock 23.1 % 23.4 % 21.5 % Risk-free interest rate 1.8 % 2.7 % 1.5 % Expected option life (in years) 2.9 2.9 2.9 Weighted-average grant date fair value per unit $ 98.16 $ 100.72 $ 90.51 (1) Assumes a reinvestment of dividends. |
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 31, 2020 : Units (in millions) Weighted-Average Outstanding beginning of period 0.60 $84.11 Units granted 0.18 98.16 Units vested (0.22) 62.17 Units canceled (0.01) 84.90 Outstanding end of period 0.55 $97.03 |
Quarterly Data (Tables)
Quarterly Data (Tables) | 12 Months Ended |
May 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule Of Unaudited Quarterly Data | The following table summarizes unaudited quarterly data for fiscal 2020 and fiscal 2019 : Fiscal 2020 - Quarters Ended (in millions, except per share data) Aug. 25 Nov. 24 (1) Feb. 23 May 31 (2) Total (3) Sales $ 2,133.9 $ 2,056.4 $ 2,346.5 $ 1,270.1 $ 7,806.9 Earnings (loss) before income taxes 190.4 (6.2 ) 265.1 (610.3 ) (161.0 ) Earnings (loss) from continuing operations 171.8 25.4 233.3 (479.7 ) (49.2 ) Losses from discontinued operations, net of tax (1.2 ) (0.7 ) (1.0 ) (0.3 ) (3.2 ) Net earnings (loss) 170.6 24.7 232.3 (480.0 ) (52.4 ) Basic net earnings per share: Earnings (loss) from continuing operations 1.40 0.21 1.92 (3.85 ) (0.40 ) Losses from discontinued operations (0.01 ) (0.01 ) — (0.01 ) (0.03 ) Net earnings (loss) 1.39 0.20 1.92 (3.86 ) (0.43 ) Diluted net earnings per share: Earnings (loss) from continuing operations 1.38 0.21 1.90 (3.85 ) (0.40 ) Losses from discontinued operations (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) Net earnings (loss) 1.37 0.20 1.89 (3.86 ) (0.43 ) Fiscal 2019 - Quarters Ended (in millions, except per share data) Aug. 26 Nov. 25 Feb. 24 May 26 Total Sales $ 2,061.4 $ 1,973.4 $ 2,246.5 $ 2,229.1 $ 8,510.4 Earnings before income taxes 176.0 135.3 253.1 217.9 782.3 Earnings from continuing operations 168.9 115.9 225.1 208.7 718.6 Losses from discontinued operations, net of tax (2.7 ) (0.3 ) (1.5 ) (0.7 ) (5.2 ) Net earnings 166.2 115.6 223.6 208.0 713.4 Basic net earnings per share: Earnings from continuing operations 1.36 0.94 1.83 1.70 5.82 Losses from discontinued operations (0.02 ) (0.01 ) (0.02 ) (0.01 ) (0.04 ) Net earnings 1.34 0.93 1.81 1.69 5.78 Diluted net earnings per share: Earnings from continuing operations 1.34 0.92 1.80 1.67 5.73 Losses from discontinued operations (0.02 ) — (0.01 ) — (0.04 ) Net earnings 1.32 0.92 1.79 1.67 5.69 (1) The quarter ended November 24, 2019 included a pre-tax pension settlement charge of $147.1 million . (2) The quarter ended May 31, 2020 consisted of 14 weeks while all other quarters consisted of 13 weeks. Additionally, the quarter ended May 31, 2020 included impairment charges of $390.0 million related to the economic impact of COVID-19. (3) The year ended May 31, 2020 consisted of 53 weeks while the year ended May 26, 2019 consisted of 52 weeks. |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | May 27, 2019USD ($) | Mar. 31, 2020USD ($) | May 31, 2020USD ($)restaurant | May 31, 2020USD ($)restaurantreporting_unit | May 26, 2019USD ($) | May 27, 2018USD ($) | Apr. 06, 2020USD ($) |
Summary of Significant Accounting Policies [Line Items] | |||||||
Emergency pay program | $ 75 | ||||||
Health and welfare insurance premiums | 4.1 | ||||||
Long-term debt | $ 939.1 | $ 939.1 | $ 939.1 | ||||
Net proceeds from issuance of common stock | 505.1 | 525.9 | 59.3 | $ 37.8 | |||
Impairment charges | 390 | ||||||
Employee retention tax credits | 39.2 | ||||||
Future amortization expense, year one | 25 | 25 | |||||
Future amortization expense, year two | 25 | 25 | |||||
Future amortization expense, year three | 25 | 25 | |||||
Future amortization expense, year four | 25 | 25 | |||||
Future amortization expense, year five | 25 | $ 25 | |||||
Number of reporting units | reporting_unit | 8 | ||||||
Gift cards breakage redemption period (in years) | 12 years | ||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (less than) | $ 171.3 | ||||||
Operating lease liability, adjustments, net (less than) | 1 | ||||||
Aggregate cumulative translation losses | 4.5 | 4.5 | (1) | ||||
Foreign currency transaction losses (gains) realized | (0.2) | $ (1) | $ 1.2 | ||||
Operating lease right-of-use assets | 3,969.2 | 3,969.2 | |||||
Operating lease liabilities | 4,436.9 | $ 4,436.9 | |||||
ASU 2016-02 | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Operating lease right-of-use assets | $ 4,000 | ||||||
Operating lease liabilities | 4,410 | ||||||
Deferred rent | 359.1 | ||||||
Lease incentives | 111.6 | ||||||
Goodwill | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of reporting units | reporting_unit | 6 | ||||||
Trademarks | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of reporting units | reporting_unit | 7 | ||||||
Cheddar’s Scratch Kitchen | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of restaurants | restaurant | 8 | ||||||
Number of operating restaurants | restaurant | 7 | ||||||
Number of closed restaurants | restaurant | 1 | ||||||
Business combination, total consideration | $ 58.1 | ||||||
Business combination, allocated to land, buildings, and equipment | $ 29.9 | $ 29.9 | |||||
Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Renewal period of lease arrangements (in years) | 5 years | ||||||
Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Renewal period of lease arrangements (in years) | 20 years | ||||||
Capitalized Software | Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Finite lived intangible assets, useful life minimum (in years) | 3 years | ||||||
Capitalized Software | Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Finite lived intangible assets, useful life minimum (in years) | 10 years | ||||||
Definite-Lived Intangible Assets | Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Finite lived intangible assets, useful life minimum (in years) | 1 year | ||||||
Definite-Lived Intangible Assets | Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Finite lived intangible assets, useful life minimum (in years) | 20 years | ||||||
Building | Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life of property, plant and equipment, minimum (in years) | 7 years | ||||||
Building | Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life of property, plant and equipment, minimum (in years) | 40 years | ||||||
Equipment | Minimum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life of property, plant and equipment, minimum (in years) | 2 years | ||||||
Equipment | Maximum | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life of property, plant and equipment, minimum (in years) | 20 years | ||||||
North America | Entity Operated Units | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of restaurants | restaurant | 3 | 3 | |||||
North America | Franchised Units | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of restaurants | restaurant | 30 | 30 | |||||
Latin America, the Middle East and Malaysia | Franchised Units | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of restaurants | restaurant | 32 | 32 | |||||
Cheddar’s Scratch Kitchen | Goodwill | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Impairment charges | $ 145 | ||||||
Cheddar’s Scratch Kitchen | Trademarks | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Impairment charges | $ 169.2 | ||||||
Retained Earnings | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Cumulative-effect adjustment to retained earnings | $ 3.8 | ||||||
Line of Credit | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Long-term line of credit | 750 | ||||||
Term Loan | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Long-term debt | $ 270 | $ 270 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Revenue Narrative) (Details) | May 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-05-31 | Franchise | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognition term (in years) | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 763.3 | $ 457.3 |
Short-term investments | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 673.5 | 319.5 |
Credit card receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 64 | 108.2 |
Depository accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 25.8 | $ 29.6 |
Summary Of Significant Accoun_7
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 31, 2020 | May 26, 2019 | May 27, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization on buildings and equipment | $ 355.9 | $ 336.7 | $ 313.1 |
Losses on replacement of equipment | 2.4 | 3.6 | 4.1 |
Buildings And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization on buildings and equipment | $ 326.8 | $ 308.8 | $ 288.8 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Capitalized Software Costs And Related Accumulated Amortization) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Accounting Policies [Abstract] | ||
Capitalized software | $ 227.9 | $ 221.6 |
Accumulated amortization | (159.7) | (146.9) |
Capitalized software, net of accumulated amortization | $ 68.2 | $ 74.7 |
Summary Of Significant Accoun_9
Summary Of Significant Accounting Policies (Costs And Accumulated Amortization Of Acquired Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Accounting Policies [Abstract] | ||
Definite-lived intangible assets | $ 23.8 | $ 80.3 |
Accumulated amortization | (6.4) | (30.4) |
Definite-lived intangible assets, net of accumulated amortization | 17.4 | 49.9 |
Definite-lived intangible liabilities | (3) | (33.5) |
Accumulated amortization | 0.9 | 13.6 |
Definite-lived intangible liabilities, net of accumulated amortization | $ (2.1) | $ (19.9) |
Summary Of Significant Accou_10
Summary Of Significant Accounting Policies (Amortization Expense Associated With Capitalized Software And Other Definite Lived Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Accounting Policies [Abstract] | |||
Amortization expense - capitalized software | $ 25.7 | $ 26.7 | $ 23.5 |
Amortization expense - other definite-lived intangibles | $ 3.4 | $ 1.2 | $ 0.8 |
Summary Of Significant Accou_11
Summary Of Significant Accounting Policies (Amortization Expense Related To Acquired Definite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Accounting Policies [Abstract] | |||
Restaurant expense - below-market leases | $ 0 | $ 3 | $ 3.1 |
Restaurant expense - above-market leases | $ 0 | $ (1.6) | $ (1.7) |
Summary Of Significant Accou_12
Summary Of Significant Accounting Policies (Goodwill And Trademark Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Goodwill And Other Intangibles [Line Items] | |||
Goodwill | $ 1,037.4 | $ 1,183.7 | |
Trademarks | 805.9 | 950.8 | |
Less goodwill impairment | (169.2) | 0 | $ 0 |
Goodwill, due to acquisitions | 22.9 | ||
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 | 311.4 | |
Trademarks | 230.1 | 375 | |
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 | 147 | |
Seasons 52 | |||
Goodwill And Other Intangibles [Line Items] | |||
Goodwill | 0 | 0 | |
Trademarks | 0.5 | 0.5 | |
Eddie V’s | |||
Goodwill And Other Intangibles [Line Items] | |||
Goodwill | 22 | 22 | |
Trademarks | $ 10.5 | $ 10.5 |
Summary Of Significant Accou_13
Summary Of Significant Accounting Policies (Basic And Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020 | Feb. 23, 2020 | Nov. 24, 2019 | Aug. 25, 2019 | May 26, 2019 | Feb. 24, 2019 | Nov. 25, 2018 | Aug. 26, 2018 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Accounting Policies [Abstract] | |||||||||||
Earnings (loss) from continuing operations | $ (479.7) | $ 233.3 | $ 25.4 | $ 171.8 | $ 208.7 | $ 225.1 | $ 115.9 | $ 168.9 | $ (49.2) | $ 718.6 | $ 603.8 |
Losses from discontinued operations | (0.3) | (1) | (0.7) | (1.2) | (0.7) | (1.5) | (0.3) | (2.7) | (3.2) | (5.2) | (7.8) |
Net earnings (loss) | $ (480) | $ 232.3 | $ 24.7 | $ 170.6 | $ 208 | $ 223.6 | $ 115.6 | $ 166.2 | $ (52.4) | $ 713.4 | $ 596 |
Average common shares outstanding - Basic (in shares) | 122.7 | 123.5 | 124 | ||||||||
Effect of dilutive stock-based compensation (in shares) | 0 | 1.9 | 2 | ||||||||
Average common shares outstanding - Diluted (in shares) | 122.7 | 125.4 | 126 | ||||||||
Basic net earnings per share: | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | $ (3.85) | $ 1.92 | $ 0.21 | $ 1.40 | $ 1.70 | $ 1.83 | $ 0.94 | $ 1.36 | $ (0.40) | $ 5.82 | $ 4.87 |
Losses from discontinued operations (in dollars per share) | (0.01) | 0 | (0.01) | (0.01) | (0.01) | (0.02) | (0.01) | (0.02) | (0.03) | (0.04) | (0.06) |
Net earnings (loss) (in dollars per share) | (3.86) | 1.92 | 0.20 | 1.39 | 1.69 | 1.81 | 0.93 | 1.34 | (0.43) | 5.78 | 4.81 |
Diluted net earnings per share: | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | (3.85) | 1.90 | 0.21 | 1.38 | 1.67 | 1.80 | 0.92 | 1.34 | (0.40) | 5.73 | 4.79 |
Losses from discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) | (0.01) | 0 | (0.01) | 0 | (0.02) | (0.03) | (0.04) | (0.06) |
Net earnings (loss) (in dollars per share) | $ (3.86) | $ 1.89 | $ 0.20 | $ 1.37 | $ 1.67 | $ 1.79 | $ 0.92 | $ 1.32 | $ (0.43) | $ 5.69 | $ 4.73 |
Summary Of Significant Accou_14
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 31, 2020 | May 26, 2019 | May 27, 2018 | |
Accounting Policies [Abstract] | |||
Anti-dilutive restricted stock and options (in shares) | 2 | 0.3 | 0.3 |
Revenue Recognition (Deferred R
Revenue Recognition (Deferred Revenue from Contract with Customer) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 | May 27, 2018 |
Unearned revenues | |||
Deferred revenues | $ 467.9 | $ 428.5 | |
Other liabilities | |||
Deferred franchise fees - non-current | 2.8 | 3.9 | |
Gift Card | |||
Unearned revenues | |||
Deferred revenues | 494.6 | 453.6 | $ 443.1 |
Deferred gift card discounts | (28.2) | (26.4) | |
Other | |||
Unearned revenues | |||
Deferred revenues | $ 1.5 | $ 1.3 |
Revenue Recognition (Deferred G
Revenue Recognition (Deferred Gift Card Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2020 | May 26, 2019 | |
Change in Contract with Customer, Liability [Abstract] | ||
Beginning balance | $ 428.5 | |
Ending balance | 467.9 | $ 428.5 |
Gift Card | ||
Change in Contract with Customer, Liability [Abstract] | ||
Beginning balance | 453.6 | 443.1 |
Activations | 683.9 | 740.2 |
Redemptions and breakage | (642.9) | (729.7) |
Ending balance | $ 494.6 | $ 453.6 |
Impairments and Disposal of A_3
Impairments and Disposal of Assets, Net (Details) $ in Millions | 12 Months Ended | ||
May 31, 2020USD ($)restaurant | May 26, 2019USD ($) | May 27, 2018USD ($) | |
Asset Impairment Charges [Abstract] | |||
Restaurant impairments | $ 51.2 | $ 19.5 | $ 3.7 |
Disposal (gains) losses | (2.4) | (0.7) | (1.1) |
Other | 172.2 | 0.2 | 0.8 |
Impairments and disposal of assets, net | $ 221 | $ 19 | $ 3.4 |
Number of underperforming restaurants closed | restaurant | 11 | ||
Number of restaurants projected cash flows insufficient to cover carrying value | restaurant | 9 |
Land, Buildings And Equipment_3
Land, Buildings And Equipment, Net (Components Of Land, Buildings And Equipment, Net) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Property, Plant and Equipment, Net [Abstract] | ||
Land | $ 126.5 | $ 148.1 |
Buildings | 3,082.2 | 2,985.1 |
Equipment | 1,756.3 | 1,716.5 |
Assets under capital leases | 100.7 | |
Assets under finance leases | 278 | |
Construction in progress | 154.8 | 84.8 |
Total land, buildings and equipment | 5,397.8 | 5,035.2 |
Less accumulated depreciation and amortization | (2,598) | (2,437.4) |
Less amortization associated with assets under capital leases | (45.2) | |
Less amortization associated with assets under finance leases | (42.9) | |
Land, buildings and equipment, net | $ 2,756.9 | $ 2,552.6 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020USD ($) | Feb. 23, 2020USD ($) | Nov. 24, 2019USD ($) | Aug. 25, 2019USD ($) | May 26, 2019USD ($) | Feb. 24, 2019USD ($) | Nov. 25, 2018USD ($) | Aug. 26, 2018USD ($) | May 31, 2020USD ($)segment | May 26, 2019USD ($) | May 27, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 4 | ||||||||||
Sales | $ 1,270.1 | $ 2,346.5 | $ 2,056.4 | $ 2,133.9 | $ 2,229.1 | $ 2,246.5 | $ 1,973.4 | $ 2,061.4 | $ 7,806.9 | $ 8,510.4 | $ 8,080.1 |
Restaurant and marketing expenses | 6,636.5 | 6,916.7 | 6,587 | ||||||||
Segment profit | 1,170.4 | 1,593.7 | 1,493.1 | ||||||||
Depreciation and amortization | 355.9 | 336.7 | 313.1 | ||||||||
Impairments and disposal of assets, net | 221 | 19 | 3.4 | ||||||||
Goodwill impairment | 169.2 | 0 | 0 | ||||||||
Segment assets | 9,946.1 | 5,892.8 | 9,946.1 | 5,892.8 | |||||||
Purchases of land, buildings and equipment | 459.9 | 452 | 396 | ||||||||
Operating Segments | Olive Garden | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,013.8 | 4,287.3 | 4,082.5 | ||||||||
Restaurant and marketing expenses | 3,281 | 3,408.3 | 3,266.9 | ||||||||
Segment profit | 732.8 | 879 | 815.6 | ||||||||
Depreciation and amortization | 144.2 | 140.8 | 132.9 | ||||||||
Impairments and disposal of assets, net | 3.4 | 8.9 | 2 | ||||||||
Goodwill impairment | 0 | ||||||||||
Segment assets | 2,757.5 | 1,063.7 | 2,757.5 | 1,063.7 | |||||||
Purchases of land, buildings and equipment | 199.3 | 187.3 | 163.4 | ||||||||
Operating Segments | LongHorn Steakhouse | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,701.1 | 1,810.6 | 1,703.2 | ||||||||
Restaurant and marketing expenses | 1,439.2 | 1,481.8 | 1,396 | ||||||||
Segment profit | 261.9 | 328.8 | 307.2 | ||||||||
Depreciation and amortization | 68.4 | 68.2 | 65.7 | ||||||||
Impairments and disposal of assets, net | 1.8 | 0.3 | 1.5 | ||||||||
Goodwill impairment | 0 | ||||||||||
Segment assets | 1,830 | 972.5 | 1,830 | 972.5 | |||||||
Purchases of land, buildings and equipment | 74.1 | 65.6 | 76.1 | ||||||||
Operating Segments | Fine Dining | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 541.1 | 605.9 | 574.4 | ||||||||
Restaurant and marketing expenses | 452.8 | 481.3 | 460.2 | ||||||||
Segment profit | 88.3 | 124.6 | 114.2 | ||||||||
Depreciation and amortization | 33.4 | 29.6 | 27.4 | ||||||||
Impairments and disposal of assets, net | 11.5 | 0 | 0.1 | ||||||||
Goodwill impairment | 0 | ||||||||||
Segment assets | 1,251.3 | 902.8 | 1,251.3 | 902.8 | |||||||
Purchases of land, buildings and equipment | 62.1 | 49.1 | 32.1 | ||||||||
Operating Segments | Other Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,550.9 | 1,806.6 | 1,720 | ||||||||
Restaurant and marketing expenses | 1,413.6 | 1,540.7 | 1,455.7 | ||||||||
Segment profit | 137.3 | 265.9 | 264.3 | ||||||||
Depreciation and amortization | 101 | 92.7 | 81.7 | ||||||||
Impairments and disposal of assets, net | 171.3 | 10.3 | 0 | ||||||||
Goodwill impairment | 169.2 | ||||||||||
Segment assets | 2,902 | 2,090.6 | 2,902 | 2,090.6 | |||||||
Purchases of land, buildings and equipment | 117 | 147.2 | 119.5 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restaurant and marketing expenses, retention credits associated with CARES Act | 43.7 | ||||||||||
Sales | 0 | 0 | 0 | ||||||||
Restaurant and marketing expenses | 49.9 | 4.6 | 8.2 | ||||||||
Segment profit | (49.9) | (4.6) | (8.2) | ||||||||
Depreciation and amortization | 8.9 | 5.4 | 5.4 | ||||||||
Impairments and disposal of assets, net | 33 | (0.5) | (0.2) | ||||||||
Goodwill impairment | 0 | ||||||||||
Segment assets | $ 1,205.3 | $ 863.2 | 1,205.3 | 863.2 | |||||||
Purchases of land, buildings and equipment | $ 7.4 | $ 2.8 | $ 4.9 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Profit to Earnings from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020 | Feb. 23, 2020 | Nov. 24, 2019 | Aug. 25, 2019 | May 26, 2019 | Feb. 24, 2019 | Nov. 25, 2018 | Aug. 26, 2018 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Segment Reporting [Abstract] | |||||||||||
Segment profit | $ 1,170.4 | $ 1,593.7 | $ 1,493.1 | ||||||||
Less general and administrative expenses | (376.4) | (405.5) | (409.8) | ||||||||
Less depreciation and amortization | (355.9) | (336.7) | (313.1) | ||||||||
Less impairments and disposal of assets, net | (221) | (19) | (3.4) | ||||||||
Less goodwill impairment | (169.2) | 0 | 0 | ||||||||
Less interest, net | (57.3) | (50.2) | (161.1) | ||||||||
Less other (income) expense, net | (151.6) | 0 | 0 | ||||||||
Earnings (loss) before income taxes | $ (610.3) | $ 265.1 | $ (6.2) | $ 190.4 | $ 217.9 | $ 253.1 | $ 135.3 | $ 176 | $ (161) | $ 782.3 | $ 605.7 |
Debt (Components Of Short-Term
Debt (Components Of Short-Term Debt) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 270 | $ 0 |
3.750% variable-rate term loan due April 2021 | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 270 | $ 0 |
Debt instrument, interest rate (percentage) | 3.75% |
Debt (Components Of Long-Term D
Debt (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Debt Instruments [Line Items] | ||
Total long-term debt | $ 939.1 | $ 939.1 |
Less unamortized discount and issuance costs | (10.3) | (11.4) |
Total long-term debt less unamortized discount and issuance costs | 928.8 | 927.7 |
3.850% senior notes due May 2027 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 500 | 500 |
Debt instrument, interest rate (percentage) | 3.85% | |
6.000% senior notes due August 2035 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 96.3 | 96.3 |
Debt instrument, interest rate (percentage) | 6.00% | |
6.800% senior notes due October 2037 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 42.8 | 42.8 |
Debt instrument, interest rate (percentage) | 6.80% | |
4.550% senior notes due February 2048 | ||
Debt Instruments [Line Items] | ||
Total long-term debt | $ 300 | $ 300 |
Debt instrument, interest rate (percentage) | 4.55% |
Debt (Aggregate Maturities Of L
Debt (Aggregate Maturities Of Long-Term Debt) (Details) $ in Millions | May 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | $ 939.1 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 12 Months Ended | |||
May 31, 2020USD ($) | Apr. 06, 2020USD ($) | Mar. 31, 2020USD ($) | May 26, 2019USD ($) | |
Debt Instruments [Line Items] | ||||
Long-term debt | $ 939,100,000 | $ 939,100,000 | ||
Long-term debt | 928,800,000 | 927,700,000 | ||
Revolving Credit Agreement | Revolving Credit Facility | ||||
Debt Instruments [Line Items] | ||||
Maximum borrowing available under the credit facility | $ 750,000,000 | |||
Total debt to total capitalization ratio | 0.75 | |||
Outstanding balance of credit agreement | $ 0 | |||
Revolving Credit Agreement | Revolving Credit Facility | Prime Rate | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, basis spread on variable rate (percentage) | 0.075% | |||
Revolving Credit Agreement | Revolving Credit Facility | Federal Funds Effective Swap Rate | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, basis spread on variable rate (percentage) | 0.50% | |||
Revolving Credit Agreement | Revolving Credit Facility | Eurodollar | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, basis spread on variable rate (percentage) | 1.075% | |||
Revolving Credit Agreement | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, basis spread on variable rate (percentage) | 1.075% | |||
Revolving Credit Agreement | Revolving Credit Facility | Base Rate | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, basis spread on variable rate (percentage) | 0.075% | |||
Term Loan | ||||
Debt Instruments [Line Items] | ||||
Total debt to total capitalization ratio | 0.75 | |||
Long-term debt | $ 270,000,000 | $ 270,000,000 | ||
Long-term debt | $ 370,000,000 | |||
Debt instrument, interest rate (percentage) | 3.75% | |||
6.800% senior notes due October 2037 | ||||
Debt Instruments [Line Items] | ||||
Long-term debt | $ 42,800,000 | $ 42,800,000 | ||
Debt instrument, interest rate (percentage) | 6.80% | |||
Maximum | 6.800% senior notes due October 2037 | ||||
Debt Instruments [Line Items] | ||||
Debt instrument, interest rate, increase (percentage) | 2.00% |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities (Narrative) (Details) $ in Millions | 12 Months Ended |
May 31, 2020USD ($) | |
Derivative [Line Items] | |
Vesting period (in years) | 4 years |
Amount of gain (loss) reclassified from AOCI to Earnings (effective portion) | $ 2 |
Darden stock units | Minimum | |
Derivative [Line Items] | |
Vesting period (in years) | 3 years |
Darden stock units | Maximum | |
Derivative [Line Items] | |
Vesting period (in years) | 5 years |
Derivative Instruments And He_4
Derivative Instruments And Hedging Activities (Notional and Fair Value Of Derivative Contracts Designated And Not Designated As Hedging Instruments) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
May 31, 2020 | May 26, 2019 | |
Derivatives, Fair Value [Line Items] | ||
Number of Shares Outstanding (in shares) | 129.9 | 123.1 |
Derivative Assets | $ 6.5 | $ 0.1 |
Derivative Liabilities | 2.1 | 0.9 |
Equity forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6.2 | 0 |
Derivative Liabilities | $ 0 | 0.8 |
Equity forwards | Derivative contracts designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Number of Shares Outstanding (in shares) | 0.2 | |
Weighted-Average Per Share Forward Rates (in dollars per share) | $ 105.03 | |
Notional Values | $ 25.4 | |
Derivative Assets | 1.8 | 0 |
Derivative Liabilities | $ 0 | 0.3 |
Equity forwards | Derivative contracts not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Number of Shares Outstanding (in shares) | 0.6 | |
Weighted-Average Per Share Forward Rates (in dollars per share) | $ 84.33 | |
Notional Values | $ 51.8 | |
Derivative Assets | 4.4 | 0 |
Derivative Liabilities | 0 | 0.5 |
Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.3 | 0.1 |
Derivative Liabilities | 2.1 | 0.1 |
Commodity contracts | Derivative contracts designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 16.1 | |
Derivative Assets | 0.3 | 0.1 |
Derivative Liabilities | 1.8 | 0.1 |
Commodity contracts | Derivative contracts not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 2.6 | |
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 0.3 | $ 0 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities (Effects Of Derivative Instruments In Cash Flow Hedging Relationships) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI | $ (19.2) | ||
Amount of Gain (Loss) Recognized in AOCI | $ 11 | $ (4.4) | |
Amount of Gain (Loss) Reclassified from AOCI to Earnings | (1.4) | ||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | 5.5 | 0 | |
Equity forwards | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI | (15.5) | ||
Amount of Gain (Loss) Recognized in AOCI | 10.8 | (5.3) | |
Equity forwards | General and administrative expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | 1 | ||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | 4.9 | (0.2) | |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI | (3.7) | ||
Amount of Gain (Loss) Recognized in AOCI | 0.2 | 0.9 | |
Commodity contracts | Food and beverage costs and restaurant expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | (2.3) | ||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | 0.7 | 0.3 | |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI | 0 | ||
Amount of Gain (Loss) Recognized in AOCI | 0 | 0 | |
Interest rate contracts | Interest, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | $ (0.1) | ||
Amount of Gain (Loss) Reclassified from AOCI to Earnings | $ (0.1) | $ (0.1) |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities (Effects Of Derivatives Not Designated As Hedging Instruments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | $ (12) | $ 25.8 | $ 3.6 |
Food and beverage costs and restaurant expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | 0.3 | 0 | 0 |
Restaurant labor expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | 0 | 11.2 | 1.5 |
General and administrative expenses | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Earnings | $ (12.3) | $ 14.6 | $ 2.1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values Of Financial Instruments Measured At Fair Value On Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Total | $ 4.4 | $ (0.8) |
Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Total | 4.4 | (0.8) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Total | 0 | 0 |
Commodity contracts | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | (1.8) | |
Commodity contracts | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | 0 | |
Commodity contracts | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | (1.8) | |
Commodity contracts | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | 0 | |
Equity forwards | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | 6.2 | (0.8) |
Equity forwards | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | 0 | 0 |
Equity forwards | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | 6.2 | (0.8) |
Equity forwards | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 12 Months Ended | |
May 31, 2020USD ($)restaurant | May 26, 2019USD ($)restaurant | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | $ 928.8 | $ 927.7 |
Long-lived assets | 2,756.9 | 2,552.6 |
Goodwill | 1,037.4 | 1,183.7 |
Trademarks | 805.9 | 950.8 |
Cheddar’s Scratch Kitchen | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Goodwill | 165.1 | 311.4 |
Trademarks | 230.1 | 375 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of long-term debt | 928.8 | 927.7 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | 1,200 | 955.7 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset impairment | 6.6 | |
Significant Other Observable Inputs (Level 2) | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-lived assets | $ 24.2 | |
Number of underperforming restaurants | restaurant | 7 | |
Significant Other Observable Inputs (Level 2) | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held-for-sale, long-lived, fair value disclosure | $ 17.6 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset impairment | 34.9 | |
Significant Unobservable Inputs (Level 3) | Cheddar’s Scratch Kitchen | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset impairment | 314.2 | |
Significant Unobservable Inputs (Level 3) | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-lived assets | $ 35.1 | $ 21.7 |
Number of underperforming restaurants | restaurant | 13 | 7 |
Asset impairment | $ 19.2 | |
Number of restaurants damaged by natural disasters | restaurant | 2 | |
Significant Unobservable Inputs (Level 3) | Carrying Value | Cheddar’s Scratch Kitchen | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Goodwill | $ 334.3 | |
Trademarks | 375.1 | |
Significant Unobservable Inputs (Level 3) | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets held-for-sale, long-lived, fair value disclosure | 0.2 | $ 2.5 |
Significant Unobservable Inputs (Level 3) | Fair Value | Cheddar’s Scratch Kitchen | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Goodwill, fair value | 165.1 | |
Trademarks, fair value | $ 230.1 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | Apr. 23, 2020 | May 31, 2020 | Sep. 18, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock Issuance - Public Offering (in shares) | 9,000,000 | 9,000,000 | |
Stock issuance - Public Offering (9.0 shares) | $ 505,100,000 | ||
Share repurchase program, authorized amount | $ 500,000,000 | ||
Stock repurchase program, cumulative shares repurchased (in shares) | 196,200,000 | ||
Stock repurchase program, cumulative shares retired (in shares) | 184,900,000 | ||
Common Stock And Surplus | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Stock issuance - Public Offering (9.0 shares) | $ 505,100,000 | $ 505,100,000 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2020 | May 26, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 2,392.6 | $ 2,194.8 |
Gain (loss) | (29.4) | (13.2) |
Reclassification realized in net earnings | 110 | 0.2 |
Ending Balance | 2,331.2 | 2,392.6 |
Foreign Currency Translation Adjustment | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (1) | (1.6) |
Gain (loss) | 5.5 | 0.6 |
Reclassification realized in net earnings | 0 | 0 |
Ending Balance | 4.5 | (1) |
Unrealized Gains (Losses) on Derivatives | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 9 | 3.4 |
Gain (loss) | (18.3) | 11 |
Reclassification realized in net earnings | 0.7 | (5.4) |
Ending Balance | (8.6) | 9 |
Benefit Plan Funding Position | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (106.2) | (87) |
Gain (loss) | (16.6) | (24.8) |
Reclassification realized in net earnings | 109.3 | 5.6 |
Ending Balance | (13.5) | (106.2) |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (98.2) | (85.2) |
Ending Balance | $ (17.6) | $ (98.2) |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Reclassification Adjustments out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020 | Feb. 23, 2020 | Nov. 24, 2019 | Aug. 25, 2019 | May 26, 2019 | Feb. 24, 2019 | Nov. 25, 2018 | Aug. 26, 2018 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Less general and administrative expenses | $ (376.4) | $ (405.5) | $ (409.8) | ||||||||
Earnings before income taxes | $ (610.3) | $ 265.1 | $ (6.2) | $ 190.4 | $ 217.9 | $ 253.1 | $ 135.3 | $ 176 | (161) | 782.3 | 605.7 |
Tax benefit (expense) | 111.8 | (63.7) | (1.9) | ||||||||
Net earnings (loss) | $ (480) | $ 232.3 | $ 24.7 | $ 170.6 | $ 208 | $ 223.6 | $ 115.6 | $ 166.2 | (52.4) | 713.4 | $ 596 |
Derivatives | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes | (1.4) | 5.5 | |||||||||
Tax benefit (expense) | 0.7 | (0.1) | |||||||||
Net earnings (loss) | (0.7) | 5.4 | |||||||||
Actuarial losses | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Actuarial losses | (148.9) | (2.5) | |||||||||
Benefit plan funding position | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes | (145.6) | 0.8 | |||||||||
Tax benefit (expense) | 36.3 | (6.4) | |||||||||
Net earnings (loss) | (109.3) | (5.6) | |||||||||
Commodity contracts | Derivatives | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Food and beverage costs and restaurant expenses | (2.3) | 0.7 | |||||||||
Equity contracts | Derivatives | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
General and administrative expenses | 1 | 4.9 | |||||||||
Interest rate contracts | Derivatives | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Food and beverage costs and restaurant expenses | (0.1) | (0.1) | |||||||||
Pension and postretirement plan | Benefit plan funding position | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
General and administrative expenses | (148.9) | (2.5) | |||||||||
Other plans | Benefit plan funding position | Amount Reclassified from AOCI into Net Earnings | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Less general and administrative expenses | $ 3.3 | $ 3.3 |
Leases (Components of Lease Exp
Leases (Components of Lease Expenses) (Details) $ in Millions | 12 Months Ended |
May 31, 2020USD ($) | |
Operating Leases | |
Operating lease expense | $ 403.2 |
Finance Leases | |
Amortization of leased assets | 8.9 |
Imputed interest on capital and financing leases | 15.9 |
Variable lease expense | 5.4 |
Total lease expense | $ 433.4 |
Leases (Components of Lease Ass
Leases (Components of Lease Assets and Liabilities) (Details) $ in Millions | May 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease right-of-use assets | $ 3,969.2 |
Finance lease right-of-use assets | 278 |
Total lease assets, net | 4,204.4 |
Operating lease liabilities - non-current | 4,276.3 |
Total lease liabilities | 4,811 |
Other assets | |
Lessee, Lease, Description [Line Items] | |
Operating lease right-of-use assets | 3,969.2 |
Land, buildings and equipment, net | |
Lessee, Lease, Description [Line Items] | |
Finance lease right-of-use assets | 235.2 |
Other current liabilities | |
Lessee, Lease, Description [Line Items] | |
Operating lease liabilities - current | 160.6 |
Finance lease liabilities - current | 5.7 |
Other non-current liabilities | |
Lessee, Lease, Description [Line Items] | |
Operating lease liabilities - non-current | 4,276.3 |
Other liabilities | |
Lessee, Lease, Description [Line Items] | |
Finance lease liabilities - non-current | $ 368.4 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) $ in Millions | 12 Months Ended |
May 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 371.7 |
Operating cash flows from finance leases | 15.9 |
Financing cash flows from finance leases | 5.2 |
Right-of-use assets obtained in exchange for lease liabilities | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 171.3 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 191.9 |
Weighted-Average Remaining Lease Term (Years) | |
Operating leases (years) | 16 years 10 months 24 days |
Finance leases (years) | 20 years 7 months 6 days |
Weighted-Average Discount Rate | |
Operating leases (percent) | 4.20% |
Finance leases (percent) | 4.80% |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) $ in Millions | May 31, 2020USD ($)lease |
Operating Leases | |
2021 | $ 378.3 |
2022 | 386.3 |
2023 | 388.7 |
2024 | 391.3 |
2025 | 396 |
Thereafter | 4,531.4 |
Total future lease commitments | 6,472 |
Less imputed interest | (2,035.1) |
Present value of lease liabilities | 4,436.9 |
Noncancelable lease commitments | 2,940 |
Lease payments, not yet commenced | $ 114.2 |
Lease payments, not yet commenced, real estate leases | lease | 28 |
Finance Leases | |
2021 | $ 25.6 |
2022 | 26.8 |
2023 | 27.3 |
2024 | 27.5 |
2025 | 28 |
Thereafter | 471.2 |
Total future lease commitments | 606.4 |
Less imputed interest | (232.3) |
Present value of lease liabilities | 374.1 |
Noncancelable lease commitments | $ 323.5 |
Leases (Analysis Of Rent Expens
Leases (Analysis Of Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 26, 2019 | May 27, 2018 | |
Operating Leased Assets [Line Items] | ||
Total rent expense | $ 393.5 | $ 379.8 |
Restaurant minimum rent | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | 338.3 | 321.8 |
Restaurant rent averaging expense | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | 27.6 | 30.2 |
Restaurant percentage rent | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | 7.3 | 7.2 |
Other | ||
Operating Leased Assets [Line Items] | ||
Total rent expense | $ 20.3 | $ 20.6 |
Leases (Annual Future Lease Com
Leases (Annual Future Lease Commitments) (Details) $ in Millions | May 26, 2019USD ($) |
Capital | |
2020 | $ 8.9 |
2021 | 8.9 |
2022 | 8.8 |
2023 | 8.9 |
2024 | 8.7 |
Thereafter | 81.4 |
Total future lease commitments | 125.6 |
Less imputed interest (at 6.5%), (various) | (41.6) |
Present value of future lease commitments | 84 |
Less current maturities | (4.1) |
Obligations under capital and financing leases, net of current maturities | 79.9 |
Financing | |
2020 | 12.2 |
2021 | 12.4 |
2022 | 12.6 |
2023 | 12.8 |
2024 | 13 |
Thereafter | 128 |
Total future lease commitments | 191 |
Less imputed interest (at 6.5%), (various) | (99.7) |
Present value of future lease commitments | 91.3 |
Less current maturities | (2.7) |
Obligations under capital and financing leases, net of current maturities | 88.6 |
Operating | |
2020 | 372.9 |
2021 | 355 |
2022 | 326.7 |
2023 | 299.8 |
2024 | 262.7 |
Thereafter | 1,434 |
Total future lease commitments | $ 3,051.1 |
Imputed interest rate | 6.50% |
Additional Financial Informat_3
Additional Financial Information (Receivables, net and Other Current Liabilities) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Receivables, net | ||
Allowance for doubtful accounts | $ (1.2) | $ (0.3) |
Receivables, net | 49.8 | 88.3 |
Other Current Liabilities | ||
Non-qualified deferred compensation plan | 242.5 | 237.9 |
Sales and other taxes | 50.4 | 70 |
Insurance-related | 43.1 | 39.4 |
Employee benefits | 42.2 | 45.5 |
Accrued interest | 9.7 | 8.5 |
Lease liabilities - current | 166.3 | 2.9 |
Miscellaneous | 51.7 | 67.7 |
Other current liabilities | 605.9 | 471.9 |
Gift card sales | ||
Receivables, net | ||
Accounts receivable, gross | 23.1 | 40.2 |
Landlord allowances due | ||
Receivables, net | ||
Accounts receivable, gross | 0 | 24 |
Miscellaneous | ||
Receivables, net | ||
Accounts receivable, gross | $ 27.9 | $ 24.4 |
Additional Financial Informat_4
Additional Financial Information (Components of Interest) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 26, 2018 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest expense | $ 49.3 | $ 44.3 | $ 152.4 | |
Imputed interest on capital and financing leases | 15.9 | |||
Imputed interest on capital and financing leases | 11.9 | 11.4 | ||
Capitalized interest | (3) | (2.2) | (1.9) | |
Interest income | (4.9) | (3.8) | (0.8) | |
Interest, net | 57.3 | 50.2 | 161.1 | |
Loss on extinguishment of debt | $ 102.2 | $ 0 | $ 0 | $ 102.2 |
Additional Financial Informat_5
Additional Financial Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Cash paid during the fiscal year for: | |||
Interest, net of amounts capitalized | $ 57.6 | $ 50.8 | $ 155.5 |
Income taxes, net of refunds | 0.3 | 23.7 | 25.7 |
Non-cash investing and financing activities: | |||
Increase in land, buildings and equipment through accrued purchases | $ 23.2 | $ 38.3 | 37.5 |
Extinguishment of debt, cash portion | $ 97.3 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2020 | May 26, 2019 | |
Income Tax Disclosure [Line Items] | ||
Employer-paid deferred social security taxes | $ 24.8 | |
Tax depreciation | 18.7 | |
Employee retention tax credits | 39.2 | |
Prepaid income taxes | 18.4 | $ 41.6 |
Gross unrecognized tax benefits | 21.6 | $ 27 |
Tax position, change is reasonably possible in the next twelve month | 6.2 | |
Unrecognized tax benefits, accrued interest | 2.1 | |
State loss carryforwards | 15.4 | |
Expiring Between 2019 and 2039 | ||
Income Tax Disclosure [Line Items] | ||
State loss carryforwards | 44.3 | |
Deferred tax assets, federal tax credit carryforwards | 63.6 | |
State | ||
Income Tax Disclosure [Line Items] | ||
Prepaid income taxes | 7.4 | |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Prepaid income taxes | 11 | |
Accrued income taxes | $ 6.2 |
Income Taxes (Allocation Of Tot
Income Taxes (Allocation Of Total Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Income Tax Disclosure [Abstract] | |||
Earnings (loss) from continuing operations | $ (111.8) | $ 63.7 | $ 1.9 |
Loss from discontinued operations | (0.9) | (1.8) | (4.8) |
Total consolidated income tax expense (benefit) | $ (112.7) | $ 61.9 | $ (2.9) |
Income Taxes (Components Of Ear
Income Taxes (Components Of Earnings Before Income Tax And Provision For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020 | Feb. 23, 2020 | Nov. 24, 2019 | Aug. 25, 2019 | May 26, 2019 | Feb. 24, 2019 | Nov. 25, 2018 | Aug. 26, 2018 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Earnings (loss) from continuing operations before income taxes: | |||||||||||
U.S. | $ (165.1) | $ 780.7 | $ 602.7 | ||||||||
Foreign | 4.1 | 1.6 | 3 | ||||||||
Earnings (loss) before income taxes | $ (610.3) | $ 265.1 | $ (6.2) | $ 190.4 | $ 217.9 | $ 253.1 | $ 135.3 | $ 176 | (161) | 782.3 | 605.7 |
Income taxes, Current | |||||||||||
Federal | 5.8 | (7.2) | 10.2 | ||||||||
State and local | 15.9 | 20.3 | 8.9 | ||||||||
Foreign | 1 | 1.4 | 1.8 | ||||||||
Total current | 22.7 | 14.5 | 20.9 | ||||||||
Income taxes, Deferred | |||||||||||
Total deferred | (133.6) | 47.5 | (20.6) | ||||||||
Income tax expense (benefit) | (111.8) | 63.7 | 1.9 | ||||||||
U.S. | |||||||||||
Income taxes, Deferred | |||||||||||
Federal | (109) | 44.9 | (25.1) | ||||||||
State and local | (25.5) | 4.3 | 6.1 | ||||||||
Total deferred | $ (134.5) | $ 49.2 | $ (19) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 21.00% | 21.00% | 29.40% |
State and local income taxes, net of federal tax benefits | 3.70% | 2.40% | 1.80% |
Enactment of the Tax Cuts and Jobs Act | 0 | 0 | (0.131) |
Benefit of federal income tax credits | 47.30% | (10.80%) | (12.80%) |
Stock-based compensation tax benefit | 5.00% | (2.00%) | (1.80%) |
Nondeductible goodwill impairment | (16.40%) | 0.00% | 0.00% |
Deferred revaluation | 6.30% | 0.00% | 0.00% |
Other, net | 2.50% | (2.50%) | (3.20%) |
Effective income tax rate | 69.40% | 8.10% | 0.30% |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) $ in Millions | 12 Months Ended |
May 31, 2020USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Beginning balance | $ 27 |
Additions related to current-year tax positions | 4.1 |
Net reductions due to settlements with taxing authorities | (7.3) |
Reductions to tax positions due to statute expiration | (2.2) |
Ending balance | $ 21.6 |
Income Taxes (Interest Expense
Income Taxes (Interest Expense On Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Income Tax Disclosure [Abstract] | |||
Interest recorded on unrecognized tax benefits | $ 1.8 | $ 1.5 | $ 0.8 |
Income Taxes (Tax Effects On De
Income Taxes (Tax Effects On Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Income Tax Disclosure [Abstract] | ||
Accrued liabilities | $ 81 | $ 69.2 |
Compensation and employee benefits | 127.5 | 119.9 |
Deferred rent and interest income | 0 | 91.1 |
Lease liabilities | 1,186.8 | 0 |
Net operating loss, credit and charitable contribution carryforwards | 117.3 | 75.3 |
Other | 11.4 | 5.9 |
Gross deferred tax assets | 1,524 | 361.4 |
Valuation allowance | (19.3) | (29.7) |
Deferred tax assets, net of valuation allowance | 1,504.7 | 331.7 |
Trademarks and other acquisition related intangibles | (164.4) | (211.5) |
Buildings and equipment | (263.7) | (247.7) |
Capitalized software and other assets | (25.7) | (24.6) |
Lease assets | (1,098) | 0 |
Other | (9) | (4.8) |
Gross deferred tax liabilities | (1,560.8) | (488.6) |
Net deferred tax liabilities | $ (56.1) | $ (156.9) |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, contribution by employer to fully fund benefit obligation | $ 12.7 | ||
Defined benefit pension plans and postretirement benefit plans funding | 13.2 | $ 0.4 | $ 60.8 |
Pension settlement charge | 145.5 | 0 | 0 |
Benefits paid | (271.8) | ||
Benefits paid | $ (272.2) | $ (17.8) | |
Expected long-term rate of return on plan assets (percentage) | 0.00% | 4.25% | |
Amortization of net actuarial gain (loss) | $ 0.1 | ||
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plans and postretirement benefit plans funding | 1.3 | $ 1.3 | 1.2 |
Pension settlement charge | 0 | 0 | $ 0 |
Benefits paid | (1.3) | $ (1.3) | |
Expected employer contribution to the benefit plans | 1.3 | ||
Amortization of net actuarial gain (loss) | 1.3 | ||
Maximum | Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution to the benefit plans | $ 0.4 |
Retirement Plans (Funding Of De
Retirement Plans (Funding Of Defined Benefit Pension Plans And Postretirement Benefit Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plans and postretirement benefit plans funding | $ 13.2 | $ 0.4 | $ 60.8 |
Defined benefit plan plant assets, voluntary funding contributions | 60.4 | ||
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plans and postretirement benefit plans funding | $ 1.3 | $ 1.3 | $ 1.2 |
Retirement Plans (Changes In Be
Retirement Plans (Changes In Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | $ 252 | $ 237.2 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 3.3 | 9.3 | 8.6 |
Benefits paid | (272.2) | (17.8) | |
Actuarial (gain) loss | 21.9 | 23.3 | |
Benefit obligation at end of period | 5 | 252 | 237.2 |
Postretirement Benefit Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of period | 19.8 | 19.9 | |
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 0.7 | 0.8 | 0.7 |
Benefits paid | (1.3) | (1.3) | |
Actuarial (gain) loss | 1.6 | 0.3 | |
Benefit obligation at end of period | $ 20.9 | $ 19.8 | $ 19.9 |
Retirement Plans (Change In Pla
Retirement Plans (Change In Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of period | $ 248.5 | ||
Fair value at end of period | $ 248.5 | ||
Defined Benefit Plans | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of period | 248.5 | 253.8 | |
Actual return on plan assets | 10.5 | 12.1 | |
Employer contributions | 13.2 | 0.4 | $ 60.8 |
Benefits paid | (272.2) | (17.8) | |
Fair value at end of period | 0 | 248.5 | 253.8 |
Postretirement Benefit Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.3 | 1.3 | 1.2 |
Benefits paid | (1.3) | (1.3) | |
Fair value at end of period | $ 0 | $ 0 | $ 0 |
Retirement Plans (Reconciliatio
Retirement Plans (Reconciliation Of The Plans' Funded Status) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded (unfunded) status at end of period | $ (5) | $ (3.5) |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Funded (unfunded) status at end of period | $ (20.9) | $ (19.8) |
Retirement Plans (Funded Status
Retirement Plans (Funded Status And Amounts Recognized In Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 0 | $ 0 |
Noncurrent (assets) liabilities | 5 | 3.5 |
Net amounts recognized | 5 | 3.5 |
Prior service credit | 0 | 0 |
Net actuarial gain (loss) | (1.6) | (100.4) |
Net amounts recognized | (1.6) | (100.4) |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 1.3 | 1.4 |
Noncurrent (assets) liabilities | 19.6 | 18.4 |
Net amounts recognized | 20.9 | 19.8 |
Prior service credit | 0.2 | 3.8 |
Net actuarial gain (loss) | (8.8) | (8.7) |
Net amounts recognized | $ (8.6) | $ (4.9) |
Retirement Plans (Accumulated B
Retirement Plans (Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation for all defined benefit plans | $ 5 | $ 252 |
Pension plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 5 | 252 |
Fair value of plan assets | 0 | 248.5 |
Projected benefit obligations for all plans with projected benefit obligations in excess of plan assets | $ 5 | $ 252 |
Retirement Plans (Weighted-Aver
Retirement Plans (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | |
May 31, 2020 | May 26, 2019 | |
Defined Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average assumptions used to determine benefit obligations, discount rate (percentage) | 2.58% | 2.66% |
Weighted-average assumptions used to determine net expense, discount rate (percentage) | 3.70% | 4.32% |
Weighted-average assumptions used to determine net expense, expected long-term rate of return on plan assets (percentage) | 0.00% | 4.25% |
Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average assumptions used to determine benefit obligations, discount rate (percentage) | 2.98% | 3.95% |
Weighted-average assumptions used to determine net expense, discount rate (percentage) | 3.95% | 4.28% |
Retirement Plans (Components Of
Retirement Plans (Components Of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 3.3 | 9.3 | 8.6 |
Expected return on plan assets | (4) | (11.2) | (12) |
Amortization of unrecognized prior service cost | 0 | 0 | 0 |
Recognized net actuarial loss | 1.8 | 2.5 | 2.8 |
Pension settlement charge | 145.5 | 0 | 0 |
Net pension and postretirement cost (benefit) | 146.6 | 0.6 | (0.6) |
Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 0.7 | 0.8 | 0.7 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of unrecognized prior service cost | (4.8) | (4.8) | (4.8) |
Recognized net actuarial loss | 1.5 | 1.5 | 1.7 |
Pension settlement charge | 0 | 0 | 0 |
Net pension and postretirement cost (benefit) | $ (2.5) | $ (2.4) | $ (2.3) |
Retirement Plans (Fair Values O
Retirement Plans (Fair Values Of Defined Benefit Pension Plans Assets) (Details) $ in Millions | May 26, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | $ 248.5 |
Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 84.7 |
Significant Other Observable Inputs (Level 2) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 163.8 |
Significant Unobservable Inputs (Level 3) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 0 |
Global Fixed-Income Commingled Funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 163.8 |
Global Fixed-Income Commingled Funds | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 0 |
Global Fixed-Income Commingled Funds | Significant Other Observable Inputs (Level 2) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 163.8 |
Global Fixed-Income Commingled Funds | Significant Unobservable Inputs (Level 3) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 0 |
Cash and Accruals | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 84.7 |
Cash and Accruals | Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 84.7 |
Cash and Accruals | Significant Other Observable Inputs (Level 2) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | 0 |
Cash and Accruals | Significant Unobservable Inputs (Level 3) | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair values of the defined benefit pension plans assets | $ 0 |
Retirement Plans (Expected Bene
Retirement Plans (Expected Benefit Payments) (Details) $ in Millions | May 31, 2020USD ($) |
Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 0.4 |
2022 | 0.4 |
2023 | 0.4 |
2024 | 0.4 |
2025 | 0.4 |
2026-2030 | 1.7 |
Postretirement Benefit Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 1.3 |
2022 | 1.3 |
2023 | 1.3 |
2024 | 1.3 |
2025 | 1.3 |
2026-2030 | $ 6.2 |
Retirement Plans (Defined Contr
Retirement Plans (Defined Contribution Plan) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 1996 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, required minimum age (in years) | 21 years | |||
Defined benefit plan, minimum period to perform service requirement (in years) | 1 year | |||
Percentage of employer contribution (percentage) | 6.00% | |||
Defined contribution plan, annual contributions per employee, percent | 1.50% | |||
Defined benefit plan net assets | $ 870,200,000 | $ 947,900,000 | ||
Defined contribution plan, expense recognized | 19,900,000 | 26,100,000 | $ 19,600,000 | |
Amounts payable to highly compensated employees under non-qualified deferred compensation plan | 242,500,000 | 237,900,000 | ||
ESOP borrowings from at variable interest rate | $ 16,900,000 | |||
Dividends received from employer | 200,000 | 200,000 | 500,000 | |
Contributions received from employer | 500,000 | $ 1,000,000 | $ 100,000 | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution (per dollar) | 0.25 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution (per dollar) | $ 1.20 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - shares shares in Millions | May 31, 2020 | 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) | 1.2 |
Stock-Based Compensation (Recog
Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 53 | $ 59.8 | $ 42.8 |
Income tax benefits | 10 | 19.5 | 12 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 6.1 | 5 | 4.6 |
Restricted stock/restricted stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 8 | 6.1 | 3.9 |
Darden stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 19.6 | 33 | 20.1 |
Equity-settled performance-based restricted stock units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 16.1 | 12.9 | 11.7 |
Employee stock purchase plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1.8 | 1.5 | 1.3 |
Director compensation program/other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 1.4 | $ 1.3 | $ 1.2 |
Stock-Based Compensation (Black
Stock-Based Compensation (Black-Scholes Model) (Details) - $ / shares | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Weighted-average fair value (in dollars per share) | $ 19.94 | $ 18.78 | $ 14.63 |
Dividend yield (percentage) | 3.00% | 3.20% | 3.00% |
Expected volatility of stock (percentage) | 22.50% | 22.60% | 23.50% |
Risk-free interest rate (percentage) | 1.90% | 2.90% | 2.00% |
Expected option life (in years) | 6 years 3 months 18 days | 6 years 4 months 24 days | 6 years 4 months 24 days |
Weighted-average exercise price per share (in dollars per share) | $ 124.24 | $ 107.05 | $ 85.83 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options exercised (in shares) | (300) | (1,200) | (800) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Options granted weighted average exercise price per share (in dollars per share) | $ 124.24 | $ 107.05 | $ 85.83 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding beginning of period (in shares) | 2,600 | ||
Options granted (in shares) | 310 | ||
Options exercised (in shares) | (280) | ||
Options canceled (in shares) | (10) | ||
Outstanding end of period (in shares) | 2,620 | 2,600 | |
Exercisable (in shares) | 1,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price per share outstanding, beginning balance (in dollars per share) | $ 62.5 | ||
Options granted weighted average exercise price per share (in dollars per share) | 124.24 | ||
Options exercised weighted average exercise price per share (in dollars per share) | 43.84 | ||
Options canceled weighted average exercise price per share (in dollars per share) | 101.93 | ||
Weighted average exercise price per share outstanding, ending balance (in dollars per share) | 71.77 | $ 62.5 | |
Exercisable weighted average exercise price per share (in dollars per share) | $ 50.2 | ||
Weighted average remaining contractual life outstanding (in years) | 5 years 10 months 13 days | 6 years 2 months 19 days | |
Exercisable weighted average remaining contractual life (in years) | 4 years 2 months 23 days | ||
Aggregate intrinsic value outstanding, beginning balance | $ 149.9 | ||
Aggregate intrinsic value outstanding, ending balance | 41.7 | $ 149.9 | |
Exercisable aggregate intrinsic value | $ 37.4 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Option Activity) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 21.3 | $ 83.5 | $ 43.1 |
Cash received from option exercises | $ 12.4 | $ 52.2 | $ 32 |
Vesting period (in years) | 4 years | ||
Maximum terms of awards (in years) | 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 | $ 8.8 | ||
Unrecognized compensation cost, period of recognition (in years) | 2 years 4 months 24 days | ||
Fair market value on grant date | $ 6.1 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock And RSU Activity) (Details) - Restricted Stock Units And RSU shares in Thousands | 12 Months Ended |
May 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (in shares) | shares | 280 |
Shares granted (in shares) | shares | 70 |
Shares vested (in shares) | shares | (60) |
Shares canceled (in shares) | shares | (10) |
Outstanding end of period (in shares) | shares | 280 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 85.67 |
Shares granted, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 122.92 |
Shares vested, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 68.71 |
Shares canceled, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 95.81 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 99.44 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock And RSU Activity) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Restricted Stock Units And RSU | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested stock options granted | $ 9.4 | ||
Unrecognized compensation cost, period of recognition (in years) | 1 year 7 months 6 days | ||
Fair market value on grant date | $ 4.6 | $ 2.3 | $ 2.9 |
Minimum | Restricted Stock Units And RSU | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
Maximum | Restricted Stock Units And RSU | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of Darden Stock Unit Activity) (Details) - Darden stock units shares in Thousands | 12 Months Ended |
May 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (in shares) | shares | 1,200 |
Units granted (in shares) | shares | 190 |
Units vested (in shares) | shares | (290) |
Units canceled (in shares) | shares | (70) |
Outstanding end of period (in shares) | shares | 1,030 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 120.13 |
Units granted, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 124.22 |
Units vested, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 122.17 |
Units canceled, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 89.82 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 76.86 |
Stock-Based Compensation (Darde
Stock-Based Compensation (Darden Stock Unit Activity) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2020 | May 26, 2019 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 4 years | |
Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Total stock unit liability | $ 49.1 | $ 80.6 |
Unrecognized compensation cost related to unvested stock options granted | $ 30.7 | |
Unrecognized compensation cost, period of recognition (in years) | 2 years 3 months 18 days | |
Fair market value on grant date | $ 33.9 | |
Other Current Liabilities | Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Current stock unit liability | 27.7 | 30.7 |
Other Liabilities | Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Noncurrent stock unit liability | $ 21.4 | $ 49.9 |
Minimum | Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 3 years | |
Maximum | Darden stock units | ||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||
Vesting period (in years) | 5 years |
Stock-Based Compensation (Sum_4
Stock-Based Compensation (Summary of Monte Carlo Simulation) (Details) - $ / shares | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Dividend yield (percentage) | 3.00% | 3.20% | 3.00% |
Expected volatility of stock (percentage) | 22.50% | 22.60% | 23.50% |
Risk-free interest rate (percentage) | 1.90% | 2.90% | 2.00% |
Expected option life (in years) | 6 years 3 months 18 days | 6 years 4 months 24 days | 6 years 4 months 24 days |
Weighted-average exercise price per share (in dollars per share) | $ 124.24 | $ 107.05 | $ 85.83 |
Equity-settled performance-based restricted stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Dividend yield (percentage) | 0.00% | 0.00% | 0.00% |
Expected volatility of stock (percentage) | 23.10% | 23.40% | 21.50% |
Risk-free interest rate (percentage) | 1.80% | 2.70% | 1.50% |
Expected option life (in years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Weighted-average exercise price per share (in dollars per share) | $ 98.16 | $ 100.72 | $ 90.51 |
Stock-Based Compensation (Sum_5
Stock-Based Compensation (Summary Of Performance Stock Unit Activity) (Details) - Equity-settled performance-based restricted stock units shares in Thousands | 12 Months Ended |
May 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Outstanding beginning of period (in shares) | shares | 600 |
Units granted (in shares) | shares | 180 |
Units vested (in shares) | shares | (220) |
Units canceled (in shares) | shares | (10) |
Outstanding end of period (in shares) | shares | 550 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding beginning of period, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 84.11 |
Units granted, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 98.16 |
Units vested, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 62.17 |
Units canceled, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | 84.90 |
Outstanding end of period, Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | $ / shares | $ 97.03 |
Stock-Based Compensation (Perfo
Stock-Based Compensation (Performance Stock Unit Activity) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Equity-settled performance-based 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 | $ 19,300,000 | ||
Unrecognized compensation cost, period of recognition (in years) | 2 years 1 month 6 days | ||
Fair market value on grant date | $ 13,400,000 | ||
Employee stock purchase plan | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Percentage of capital stock (percentage) | 5.00% | ||
Investment authorized | $ 5,000 | ||
Shares available for purchase by employees (in shares) | 5,200,000 | ||
Percent of fair market value, common stock purchased by employees (percentage) | 85.00% | ||
Cash received from employees who acquired shares under ESPP | $ 8,300,000 | $ 7,100,000 | $ 5,800,000 |
Minimum | Equity-settled performance-based restricted stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Service period (in years) | 2 years | ||
Maximum | Equity-settled performance-based restricted stock units | |||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Service period (in years) | 5 years |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | May 31, 2020 | May 26, 2019 |
Workers Compensation And General Liabilities Accrued | ||
Commitments and Contingencies [Line Items] | ||
Standby letters of credit | $ 65.2 | $ 75.9 |
Surety Bond And Other Payments | ||
Commitments and Contingencies [Line Items] | ||
Standby letters of credit | 44 | 21.6 |
Property Lease Guarantee | ||
Commitments and Contingencies [Line Items] | ||
Fair value of potential payments discounted at pre-tax cost of capital related to guarantee obligations | 122.4 | 123.2 |
Maximum | Property Lease Guarantee | ||
Commitments and Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 151.5 | $ 151.6 |
Quarterly Data (Schedule Of Una
Quarterly Data (Schedule Of Unaudited Quarterly Data) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2020 | Feb. 23, 2020 | Nov. 24, 2019 | Aug. 25, 2019 | May 26, 2019 | Feb. 24, 2019 | Nov. 25, 2018 | Aug. 26, 2018 | May 31, 2020 | May 26, 2019 | May 27, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||
Sales | $ 1,270.1 | $ 2,346.5 | $ 2,056.4 | $ 2,133.9 | $ 2,229.1 | $ 2,246.5 | $ 1,973.4 | $ 2,061.4 | $ 7,806.9 | $ 8,510.4 | $ 8,080.1 |
Earnings (loss) before income taxes | (610.3) | 265.1 | (6.2) | 190.4 | 217.9 | 253.1 | 135.3 | 176 | (161) | 782.3 | 605.7 |
Earnings (loss) from continuing operations | (479.7) | 233.3 | 25.4 | 171.8 | 208.7 | 225.1 | 115.9 | 168.9 | (49.2) | 718.6 | 603.8 |
Losses from discontinued operations, net of tax | (0.3) | (1) | (0.7) | (1.2) | (0.7) | (1.5) | (0.3) | (2.7) | (3.2) | (5.2) | (7.8) |
Net earnings | (480) | $ 232.3 | $ 24.7 | $ 170.6 | $ 208 | $ 223.6 | $ 115.6 | $ 166.2 | (52.4) | 713.4 | 596 |
Pension settlement charge | $ 145.5 | $ 0 | $ 0 | ||||||||
Impairment charges | $ 390 | ||||||||||
Basic net earnings per share: | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | $ (3.85) | $ 1.92 | $ 0.21 | $ 1.40 | $ 1.70 | $ 1.83 | $ 0.94 | $ 1.36 | $ (0.40) | $ 5.82 | $ 4.87 |
Losses from discontinued operations (in dollars per share) | (0.01) | 0 | (0.01) | (0.01) | (0.01) | (0.02) | (0.01) | (0.02) | (0.03) | (0.04) | (0.06) |
Net earnings (loss) (in dollars per share) | (3.86) | 1.92 | 0.20 | 1.39 | 1.69 | 1.81 | 0.93 | 1.34 | (0.43) | 5.78 | 4.81 |
Diluted net earnings per share: | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | (3.85) | 1.90 | 0.21 | 1.38 | 1.67 | 1.80 | 0.92 | 1.34 | (0.40) | 5.73 | 4.79 |
Losses from discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) | (0.01) | 0 | (0.01) | 0 | (0.02) | (0.03) | (0.04) | (0.06) |
Net earnings (loss) (in dollars per share) | $ (3.86) | $ 1.89 | $ 0.20 | $ 1.37 | $ 1.67 | $ 1.79 | $ 0.92 | $ 1.32 | $ (0.43) | $ 5.69 | $ 4.73 |
Defined Benefit Plans | |||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||
Pension settlement charge | $ 147.1 |