11-K 1 form11k_1001.txt 11-K, DSP, 10/01 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------------------------------------------------------------- FORM 11-K -------------------------------------------------------------------------------- ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. [NO FEE REQUIRED]. For the fiscal year ended April 30, 2001. OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. [NO FEE REQUIRED]. For the transition period from ........... to ........... Commission File Number 1-13666 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Darden Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: DARDEN RESTAURANTS, INC. 5900 Lake Ellenor Drive Orlando, Florida 32809 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- REQUIRED INFORMATION The following financial statements for the plan are being furnished herewith: Independent Auditors' Report. Audited statement of net assets available for benefits with fund information as of April 30, 2001 and 2000, prepared in accordance with the financial reporting requirements of ERISA. Audited statement of changes in net assets available for benefits with fund information for the years ended April 30, 2001, and 2000, prepared in accordance with the financial reporting requirements of ERISA. Notes to financial statements. Schedule 1 - Schedule of assets held for investment purposes at end of year April 30, 2001. Schedule 2 - Schedule of reportable transactions, year ended April 30, 2001. 2 DARDEN SAVINGS PLAN Financial Statements and Supplemental Schedules April 30, 2001 and 2000 (With Independent Auditors' Report Thereon) 3 KPMG 111 North Orange Avenue, Suite 1600 P.O. Box 3031 Orlando, FL 32802 Independent Auditors' Report Financial Fiduciary Committee Darden Restaurants, Inc.: We have audited the accompanying statements of net assets available for benefits with fund information of the Darden Savings Plan (the "Plan") as of April 30, 2001 and 2000, and the related statement of changes in net assets available for benefits with fund information for the years ended April 30, 2001 and 2000. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of April 30, 2001 and 2000, and the changes in net assets available for benefits for the years ended April 30, 2001 and 2000, in conformity with accounting principles generally accepted in the United States of America. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes at end of year and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statements of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. August 31, 2001 4 DARDEN SAVINGS PLAN Statement of Net Assets Available for Benefits with Fund Information April 30, 2001
Participant directed -------------------------------------------------------------------- American Express American Express Trust Stable Capital Pimco Total Trust Equity Index Fund II Return Fund Fund I ---------------------- ---------------------- ---------------------- Assets Investments, at fair value: Short-term investments, at cost which approximates fair value $ -- $ -- $ -- American Express Trust Stable Capital Fund II 37,609,731 -- -- Pimco Total Return Fund -- 4,010,250 -- American Express Trust Equity Index Fund I -- -- 42,250,231 T. Rowe Price Small Cap Stock Fund -- -- -- EuroPacific Growth Fund -- -- -- Common stock of Darden Restaurants, Inc. -- -- -- Participant loans -- -- -- ------------- ------------ ------------ Total investments 37,609,731 4,010,250 42,250,231 ------------- ------------ ------------ Receivables: Participant contributions 71,560 17,332 100,291 Employer contribution -- -- -- Accrued dividend and interest -- -- -- ------------- ------------ ------------ Total receivables 71,560 17,332 100,291 ------------- ------------ ------------ Total assets 37,681,291 4,027,582 42,350,522 ------------- ------------ ------------ Liabilities ESOP Loan -- -- -- Interest payable -- -- -- ------------- ------------ ------------ Total liabilities -- -- -- ------------- ------------ ------------ Net assets available for benefits $ 37,681,291 $ 4,027,582 $ 42,350,522 ============= ============ ============ Number of participants (unaudited) 7,241 2,968 8,945 ============= ============ ============
See accompanying notes to financial statements. 5
Non-participant Participant directed directed ----------------------------------------------------------------------------- ------------------ T. Rowe Price Company Participant Small Cap EuroPacific Common Loan ESOP Stock Fund Growth Fund Stock Fund Fund Fund Total ------------------- ------------------ -------------------------------------- ------------------ ------------------- ------------------- ------------------ -------------------------------------- ------------------ ------------------- $ -- $ -- $ 329,205 $ -- $ 506,315 $ 835,520 -- -- -- -- -- 37,609,731 -- -- -- -- -- 4,010,250 -- -- -- -- -- 42,250,231 17,241,604 -- -- -- -- 17,241,604 -- 11,551,582 -- -- -- 11,551,582 -- -- 12,969,779 -- 268,567,237 281,537,016 -- -- -- 5,783,158 -- 5,783,158 -------------- -------------- -------------- -------------- -------------- -------------- 17,241,604 11,551,582 13,298,984 5,783,158 269,073,552 400,819,092 -------------- -------------- -------------- -------------- -------------- -------------- 42,823 34,956 31,697 -- -- 298,659 -- -- -- -- 206,424 206,424 -- -- -- -- 399,431 399,431 -------------- -------------- -------------- -------------- -------------- -------------- 42,823 34,956 31,697 -- 605,855 904,514 -------------- -------------- -------------- -------------- -------------- -------------- 17,284,427 11,586,538 13,330,681 5,783,158 269,679,407 401,723,606 -------------- -------------- -------------- -------------- -------------- -------------- -- -- -- -- 44,455,000 44,455,000 -- -- -- -- 92,729 92,729 -------------- -------------- -------------- -------------- -------------- -------------- -- -- -- -- 44,547,729 44,547,729 -------------- -------------- -------------- -------------- -------------- -------------- $ 17,284,427 $ 11,586,538 $ 13,330,681 $ 5,783,158 $ 225,131,678 $ 357,175,877 ============== ============== ============== ============== ============== ============== 8,452 5,366 3,829 1,861 11,582 ============== ============== ============== ============== ==============
6 DARDEN SAVINGS PLAN Statement of Net Assets Available for Benefits with Fund Information April 30, 2000
Participant directed -------------------------------------------------------------------- American Express American Express Trust Stable Capital Pimco Total Trust Equity Index Fund II Return Fund Fund I ---------------------- ---------------------- ---------------------- Assets Investments, at fair value: Short-term investments, at cost which approximates fair value $ -- $ -- $ -- American Express Trust Stable Capital Fund II 35,801,149 -- -- Pimco Total Return Fund -- 1,780,686 -- American Express Trust Equity Index Fund I -- -- 49,344,533 T. Rowe Price Small Cap Stock Fund -- -- -- EuroPacific Growth Fund -- -- -- Common stock of Darden Restaurants, Inc. -- -- -- Participant loans -- -- -- ------------- ------------- ------------- Total investments 35,801,149 1,780,686 49,344,533 ------------- ------------- ------------- Receivables: Participant contributions 73,793 11,408 106,181 Employer contribution -- -- -- Accrued dividend and interest -- -- -- ------------- ------------- ------------- Total receivables 73,793 11,408 106,181 ------------- ------------- ------------- Total assets 35,874,942 1,792,094 49,450,714 ------------- ------------- ------------- Liabilities ESOP Loan -- -- -- Interest payable -- -- -- ------------- ------------- ------------- Total liabilities -- -- -- ------------- ------------- ------------- Net assets available for benefits $ 35,874,942 $ 1,792,094 $ 49,450,714 ============= ============= ============= Number of participants (unaudited) 7,548 2,437 9,273 ============= ============= =============
See accompanying notes to financial statements. 7
Non-participant Participant directed directed ----------------------------------------------------------------------------- ------------------ T. Rowe Price Company Participant Small Cap EuroPacific Common Loan ESOP Stock Fund Growth Fund Stock Fund Fund Fund Total ------------------- ------------------ -------------------------------------- ------------------ ------------------- ------------------- ------------------ -------------------------------------- ------------------ ------------------- $ -- $ -- $ 521,230 $ -- $ 417,498 $ 938,728 -- -- -- -- -- 35,801,149 -- -- -- -- -- 1,780,686 -- -- -- -- -- 49,344,533 13,504,224 -- -- -- -- 13,504,224 -- 14,993,199 -- -- -- 14,993,199 -- -- 8,930,489 -- 201,816,293 210,746,782 -- -- -- 5,355,162 -- 5,355,162 -------------- -------------- -------------- -------------- -------------- -------------- 13,504,224 14,993,199 9,451,719 5,355,162 202,233,791 332,464,463 -------------- -------------- -------------- -------------- -------------- -------------- 38,654 38,565 30,704 -- -- 299,305 -- -- -- -- 365,650 365,650 -- -- -- -- 440,777 440,777 -------------- -------------- -------------- -------------- -------------- -------------- 38,654 38,565 30,704 -- 806,427 1,105,732 -------------- -------------- -------------- -------------- -------------- -------------- 13,542,878 15,031,764 9,482,423 5,355,162 203,040,218 333,570,195 -------------- -------------- -------------- -------------- -------------- -------------- -- -- -- -- 52,600,000 52,600,000 -- -- -- -- 160,956 160,956 -------------- -------------- -------------- -------------- -------------- -------------- -- -- -- -- 52,760,956 52,760,956 -------------- -------------- -------------- -------------- -------------- -------------- 13,542,878 15,031,764 9,482,423 5,355,162 150,279,262 280,809,239 ============== ============== ============== ============== ============== ============== 8,555 5,401 3,959 1,756 12,059 ============== ============== ============== ============== ==============
8 DARDEN SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits with Fund Information April 30, 2001
Participant directed ---------------------------------------------------------------------- American Express American Express Trust Stable Capital Pimco Total Trust Equity Index Fund II Return Fund Fund I ------------------------ ---------------------- ---------------------- Additions to net assets attributed to: Net investment income (loss): Net appreciation (depreciation) in fair value of investments $ 2,140,346 $ 89,427 $ (6,446,695) Dividends and interest -- 163,921 -- --------------- --------------- --------------- Net investment income (loss) 2,140,346 253,348 (6,446,695) --------------- --------------- --------------- Participant loan activity during the year: Withdrawals (818,085) (96,437) (1,344,570) Repayments (including interest) 706,405 99,656 1,120,818 --------------- --------------- --------------- Total loan activity (111,680) 3,219 (223,752) --------------- --------------- --------------- Contributions: Participants 3,841,550 746,483 5,730,695 Employer -- -- -- Forfeitures (20,826) -- (120) --------------- --------------- --------------- Total contributions 3,820,724 746,483 5,730,575 --------------- --------------- --------------- Total additions, net 5,849,390 1,003,050 (939,872) --------------- --------------- --------------- Deductions from net assets attributed to: Interest expense -- -- -- Administrative expenses (8,253) (386) (5,483) Payments due to resignations, retirements, withdrawals and deaths (4,715,999) (440,565) (4,684,869) Transfers between funds 681,211 1,673,389 (1,469,968) --------------- --------------- --------------- Total deductions, net (4,043,041) 1,232,438 (6,160,320) --------------- --------------- --------------- Net assets available for benefits: Beginning of year 35,874,942 1,792,094 49,450,714 --------------- --------------- --------------- End of year $ 37,681,291 $ 4,027,582 $ 42,350,522 =============== =============== ===============
See accompanying notes to financial statements. 9
Non-participant Participant directed directed ----------------------------------------------------------------------------- ------------------ T. Rowe Price Company Participant Small Cap EuroPacific Common Loan ESOP Stock Fund Growth Fund Stock Fund Fund Fund Total ------------------- ------------------ -------------------------------------- ------------------ ------------------- ------------------- ------------------ -------------------------------------- ------------------ ------------------- $ (467,636) $ (4,169,359) $ 4,258,177 $ -- $ 89,199,138 $ 84,603,398 1,736,828 1,374,818 38,999 -- 836,843 4,151,409 -------------- -------------- -------------- -------------- -------------- -------------- 1,269,192 (2,794,541) 4,297,176 -- 90,035,981 88,754,807 -------------- -------------- -------------- -------------- -------------- -------------- (467,392) (482,473) (603,335) 3,812,292 -- -- 445,423 412,417 424,496 (2,688,586) -- 520,629 -------------- -------------- -------------- -------------- -------------- -------------- (21,969) (70,056) (178,839) 1,123,706 -- 520,629 -------------- -------------- -------------- -------------- -------------- -------------- 2,348,790 2,095,577 1,600,145 -- -- 16,363,240 -- -- -- -- 10,422,917 10,422,917 (22) (7) -- -- -- (20,975) -------------- -------------- -------------- -------------- -------------- -------------- 2,348,768 2,095,570 1,600,145 -- 10,422,917 26,765,182 -------------- -------------- -------------- -------------- -------------- -------------- 3,595,991 (769,027) 5,718,482 1,123,706 100,458,898 116,040,618 -------------- -------------- -------------- -------------- -------------- -------------- -- -- -- -- (3,188,715) (3,188,715) (1,988) (1,590) (2,320) -- (411,413) (431,433) (1,768,736) (1,589,188) (1,337,897) (695,710) (20,820,868) (36,053,832) 1,916,282 (1,085,421) (530,007) -- (1,185,486) -- -------------- -------------- -------------- -------------- -------------- -------------- 145,558 (2,676,199) (1,870,224) (695,710) (25,606,482) (39,673,980) -------------- -------------- -------------- -------------- -------------- -------------- 13,542,878 15,031,764 9,482,423 5,355,162 150,279,262 280,809,239 -------------- -------------- -------------- -------------- -------------- -------------- $ 17,284,427 $ 11,586,538 $ 13,330,681 $ 5,783,158 $ 225,131,678 $ 357,175,877 ============== ============== ============== ============== ============== ==============
10 DARDEN SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits with Fund Information April 30, 2000
Participant directed ---------------------------------------------------------------------- American Express American Express Trust Stable Capital Pimco Total Trust Equity Index Fund II Return Fund Fund I ------------------------ ---------------------- ---------------------- Additions to net assets attributed to: Net investment income (loss): Net appreciation (depreciation) in fair value of investments $ 2,082,128 $ (81,878) $ 4,461,999 Dividends and interest -- 103,198 -- --------------- --------------- --------------- Net investment income (loss) 2,082,128 21,320 4,461,999 --------------- --------------- --------------- Participant loan activity during the year: Withdrawals (766,259) (98,786) (1,461,942) Repayments (including interest) 552,869 62,220 866,763 --------------- --------------- --------------- Total loan activity (213,390) (36,566) (595,179) --------------- --------------- --------------- Contributions: Participants 4,282,853 718,495 6,312,772 Employer -- -- -- Forfeitures 11,033 -- -- --------------- --------------- --------------- Total contributions 4,293,886 718,495 6,312,772 --------------- --------------- --------------- Total additions, net 6,162,624 703,249 10,179,592 --------------- --------------- --------------- Deductions from net assets attributed to: Interest expense -- -- -- Administrative expenses (8,896) (393) (6,823) Payments due to resignations, retirements, withdrawals and deaths (5,258,960) (279,741) (6,432,114) Transfers between funds (1,191,163) (503,909) (368,752) --------------- --------------- --------------- Total deductions, net (6,459,019) (784,043) (6,807,689) --------------- --------------- --------------- Net assets available for benefits: Beginning of year 36,171,337 1,872,888 46,078,811 --------------- --------------- --------------- End of year $ 35,874,942 $ 1,792,094 $ 49,450,714 =============== =============== ===============
See accompanying notes to financial statements. 11
Non-participant Participant directed directed ----------------------------------------------------------------------------- ------------------ T. Rowe Price Company Participant Small Cap EuroPacific Common Loan ESOP Stock Fund Growth Fund Stock Fund Fund Fund Total ------------------- ------------------ -------------------------------------- ------------------ ------------------- ------------------- ------------------ -------------------------------------- ------------------ ------------------- $ 2,218,856 $ 3,115,760 $ (1,440,151) $ -- $ (47,202,944) $ (36,846,230) 516,655 523,794 35,448 -- 925,325 2,104,420 -------------- -------------- -------------- -------------- -------------- -------------- 2,735,511 3,639,554 (1,404,703) -- (46,277,619) (34,741,810) -------------- -------------- -------------- -------------- -------------- -------------- (428,490) (532,586) (524,858) 3,812,921 -- -- 288,512 263,859 375,094 (1,993,954) -- 415,363 -------------- -------------- -------------- -------------- -------------- -------------- (139,978) (268,727) (149,764) 1,818,967 -- 415,363 -------------- -------------- -------------- -------------- -------------- -------------- 2,222,710 1,934,148 1,987,050 -- -- 17,458,028 -- -- -- -- 10,196,647 10,196,647 -- -- -- -- -- 11,033 -------------- -------------- -------------- -------------- -------------- -------------- 2,222,710 1,934,148 1,987,050 -- 10,196,647 27,665,708 -------------- -------------- -------------- -------------- -------------- -------------- 4,818,243 5,304,975 432,583 1,818,967 (36,080,972) (6,660,739) -------------- -------------- -------------- -------------- -------------- -------------- -- -- -- -- (3,429,776) (3,429,776) (2,118) (1,668) (2,511) -- (496,329) (518,738) (1,729,120) (1,257,145) (1,445,910) (541,528) (13,547,736) (30,492,254) (260,536) 2,301,118 774,864 -- (751,622) -- -------------- -------------- -------------- -------------- -------------- -------------- (1,991,774) 1,042,305 (673,557) (541,528) (18,225,463) (34,440,768) -------------- -------------- -------------- -------------- -------------- -------------- 10,716,409 8,684,484 9,723,397 4,077,723 204,585,697 321,910,746 -------------- -------------- -------------- -------------- -------------- -------------- $ 13,542,878 $ 15,031,764 $ 9,482,423 $ 5,355,162 $ 150,279,262 $ 280,809,239 ============== ============== ============== ============== ============== ================
12 DARDEN SAVINGS PLAN Notes to Financial Statements April 30, 2001 and 2000 (1) Description of the Plan The following description of the Darden Savings Plan (the "Plan") provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. The Plan, as amended, was originally established in June 1973. The Plan covers certain employees of Darden Restaurants, Inc.'s operating and administrative subsidiaries, and their divisions and affiliates (collectively, the Company) who are 21 or over, regardless of their length of service. Effective May 1999, the Plan was amended to allow allocation of Company shares in the ESOP Fund for payment of quarterly incentive bonuses earned by certain restaurant management employees that have five years of service with the Company. Effective January 2000, the Plan was also amended to allow allocation of Company shares in the ESOP Fund for payment of annual incentive bonuses earned by certain Restaurant Support Center administrative employees that have five years of service with the Company. Under the Plan, eligible employees may elect to make primary contributions to the Plan ranging from 1 percent to 6 percent of their aggregate compensation for each year on an after-tax or before-tax basis. Participants electing to contribute 6 percent may also elect to make unmatched contributions equal to between 1 percent and 9 percent of their aggregate compensation for the year. The Company makes quarterly variable contributions to the Plan ranging from 25 percent to 100 percent of the primary contribution percentages made by the participants. The Company contribution varies depending on the Company's operating results. Plan matching provisions become effective for participants upon completion of 12 months of service and accumulation of 1,000 hours of service in an anniversary year. Income earned by the Plan is allocated to participants' accounts based on their relative account balances. Participants may borrow from their vested account as follows: a minimum of $1,000 up to a maximum equal to the lesser of $50,000, 50 percent of their vested account balance, an amount which would result in loan repayments not to exceed 50 percent of the participant's net take-home pay, or the balance in the participant's account (including non-vested amounts) excluding amounts in the ESOP Fund. Loan transactions are treated as a transfer to (from) the investment fund from (to) the Participant Loan Fund. Loan repayment terms generally may not exceed 5 years. The loans are secured by the balance in the participant's account and bear market rates of interest. Principal and interest is paid through payroll deductions and may be repaid in full at any time without penalty. 13 (Continued) DARDEN SAVINGS PLAN Notes to Financial Statements April 30, 2001 and 2000 On termination of service due to death, disability or retirement, a participant shall be entitled to a distribution of the total value of his or her account. If that participant had a vested account balance as of June 1, 1990, he or she may elect monthly installments not to exceed 120 months. All other terminating participants, including those who terminate service due to other reasons, will receive a lump sum distribution of their vested account balance if such balance is less than $5,000. Terminating participants having vested account balances greater than $5,000 may elect either a lump sum distribution or to leave their accounts in the Plan until attainment of age 65. All benefits are recorded when paid. Trustee and administrative duties of the Plan are being performed by American Express Trust Company. (2) Summary of Accounting Policies (a) Basis of Presentation The financial statements of the Plan are prepared under the accrual method of accounting. The Plan accounts for certain changes in net assets as follows: o Dividends and interest, net realized and unrealized gains or losses and administrative expenses (presented as net appreciation (depreciation) in fair value of investments) of the American Express Trust Stable Capital Fund II, Pimco Total Return Fund, American Express Trust Equity Index Fund I, T. Rowe Price Small Cap Stock Fund, and the EuroPacific Growth Fund are recognized by the Plan only as they are reflected in the Plan's proportionate share of net increases (decreases) in the fair value of the respective funds; and o Net realized gains or losses are recognized by the Plan upon the sale of investment securities on the basis of weighted average cost. (b) Investments Plan investments are recorded at fair value. Fair value is determined by quoted market prices. Short-term investments are stated at cost, which approximates fair value. Purchases and sales of securities are recorded on a trade date basis. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. (Continued) 14 DARDEN SAVINGS PLAN Notes to Financial Statements April 30, 2001 and 2000 (c) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. (3) Forfeitures and Vesting Vested rights to Company contribution amounts accrue at a rate of 5 percent per quarter from the Company match eligibility date. Forfeitures to the Plan can be used to cover future Company contributions, reinstate previously forfeited amounts to rehired employees, and cover administrative expenses incurred by the leveraged unallocated accounts. During the 2001 and 2000 Plan years, $380,648 and $365,111, respectively, of forfeitures were used to cover administrative expenses of the Plan. No forfeited funds were used to cover Company contributions. (4) Choice of Investments Participant contributions to the Plan may be directed to six basic investment alternatives: American Express Trust Stable Capital Fund II, Pimco Total Return Fund, American Express Trust Equity Index Fund I, T. Rowe Price Small Cap Stock Fund, EuroPacific Growth Fund, and Company Common Stock Fund. Company contributions to the Plan are invested in the ESOP Fund. (5) Investments The following table presents the fair value of investments that represent 5 percent or more of the Plan's net assets at April 30, 2001 and 2000:
2001 2000 ------------------- ------------------ Investments at fair value: American Express Trust Stable Capital Fund II $ 37,609,731 35,801,149 American Express Trust Equity Index Fund I 42,250,231 49,344,533 EuroPacific Growth Fund - 14,993,199 Common stock of Darden Restaurants, Inc. (including $268,567,237 and $201,816,293 of non-participant directed funds at April 30, 2001 and 2000, respectively) 281,537,016 210,746,782
(Continued) 15 DARDEN SAVINGS PLAN Notes to Financial Statements April 30, 2001 and 2000 (6) Company Common Stock Fund Amounts in the Company Common Stock Fund are invested in the common stock of Darden Restaurants, Inc. At April 30, 2001 and 2000, the fair value of the shares held in participant directed accounts was $12,969,779 (474,910 shares) and $8,930,489 (484,366 shares), respectively. Participants should refer to the consolidated financial statements of Darden Restaurants, Inc. included in the Company's Annual Report on Form 10K filed with the Securities & Exchange Commission. (7) ESOP Fund The ESOP Fund consists of common stock of the Company and cash received from dividends and fractional shares. All amounts credited to participants' ESOP accounts will be invested in the ESOP Fund and may not be transferred from the ESOP Fund to any of the Plan's other investment funds except as required by applicable Internal Revenue Service (IRS) regulations or to the extent permitted by the terms of the Plan. Likewise, no amounts may be transferred from any of the other investment funds into the ESOP Fund. At April 30, 2001, the ESOP Fund consists of 9,834,026 shares of Company common stock. Of the total shares held by the ESOP Fund, 3,075,509 shares of Company common stock have been allocated to individual participant accounts. The remaining 6,758,517 shares of Company common stock are reserved for future Company matching contributions and quarterly and annual incentive bonuses. The shares become available for allocation to participants' accounts as ESOP loan principal and interest is paid. At April 30, 2001, the fair value of the 6,758,517 unallocated Company shares was $184,575,085. At April 30, 2001, the fair value of the 3,075,509 allocated shares was $83,992,152. At April 30, 2000, the fair value of the 8,016,774 unallocated Company shares was $147,809,259. At April 30, 2000, the fair value of the 2,929,195 allocated shares was $54,007,034. The ESOP Fund has two promissory notes payable to Darden Restaurants, Inc., with outstanding principal balances of $27,555,000 and $16,900,000, as of April 30, 2001 and $35,700,000 and $16,900,000 as of April 30, 2000. The notes bear interest at variable rates payable on a monthly or bi-monthly basis at the discretion of the Company. No principal payments on the notes are required until the due dates, December 31, 2007 and December 15, 2014, respectively. Any or all of the principal may be prepaid at any time. (8) Reconciliation of Financial Statements to Form 5500 The following is a reconciliation of net assets available for plan benefits per the accompanying financial statements to the Form 5500:
2001 2000 ------------------ ------------------ Net assets available for benefits per accompanying financial statements $ 357,175,877 280,809,239 Due to plan participants (158,622) (138,614) ------------------ ------------------ Net assets available for benefits per Form 5500 $ 357,017,255 280,670,625
(Continued) 16 DARDEN SAVING PLAN Notes to Financial Statements April 30, 2001 and 2000 The following is a reconciliation of benefits paid to participants per the accompanying financial statements to the Form 5500:
2001 2000 ---- ---- Benefits paid to participants per the financial statements $ 36,053,832 30,492,254 Add: Amounts allocated to withdrawing participants at end of year 158,622 138,614 Less: Amounts allocated to withdrawing participants at beginning of year (138,614) (121,969) ----------------------------- Benefits paid to participants per the Form 5500 $ 36,073,840 30,508,899 =============================
(9) Tax Status The Plan obtained its latest determination letter on December 10, 1997, in which the IRS stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan was amended subsequent to receipt of the determination letter. However, the Plan's administrator believes that the Plan is currently designed and being operated, as amended, in compliance with these requirements. (10) Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become fully vested in their employer contributions. 17 Schedule 1 DARDEN SAVINGS PLAN Schedule of Assets Held for Investment Purposes at End of Year April 30, 2001
Face amount or number Current Issuer of units Cost value -------------------------------------------------------- ------------------- ------------------- ------------------- Common stock of Darden Restaurants, Inc.* 10,308,936 $ 62,679,681 $ 281,537,016 American Express Trust Stable Capital Fund II* 2,465,565 32,177,598 37,609,731 Pimco Total Return Fund 386,716 3,990,962 4,010,250 American Express Trust Equity Index Fund I* 1,160,848 35,029,121 42,250,231 T. Rowe Price Small Cap Stock Fund 736,821 16,226,102 17,241,604 EuroPacific Growth Fund 380,989 12,703,841 11,551,582 Participant Loans** 5,783,158 -- 5,783,158 American Express Trust Company Short-term Investment Fund* 835,520 835,520 835,520
*Party-in-interest **Bearing interest at prevailing rates at time of loan origination See accompanying independent auditors' report. 18 Schedule 2 DARDEN SAVINGS PLAN Schedule of Reportable Transactions Year ended April 30, 2001 5% series of transactions by security issue described in 29 CFR 2520 [(103-6(c)(i)(iii)]:
Purchases Sales ---------------------------- ----------------------------- Net gain Issuer/Description Number Amount Number Amount (loss) ---------------------------------------- ------------ --------------- ------------ ---------------- ---------------- American Express Trust Company Short-term Investment Fund* 251 $ 12,963,193 380 $ 13,049,023 $ -- Common stock of Darden Restaurants, Inc.* 59 2,390,589 101 24,709,670 721,238 *Party-in-interest
See accompanying independent auditors' report. 19 EXHIBITS 23 Consent of KPMG LLP, independent auditors. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Darden Savings Plan has duly caused this Annual Report to be signed on its behalf by the Financial Fiduciary Committee (as the person who administers the financial aspects of the Darden Savings Plan), by the undersigned hereunto duly authorized. DARDEN SAVINGS PLAN By: Financial Fiduciary Committee, as financial administrator of the Darden Savings Plan Dated: October 26, 2001 By: /s/ Clarence Otis, Jr. --------------------------------- Clarence Otis, Jr., Chairman Financial Fiduciary Committee Darden Restaurants, Inc. 20