Form 8-K DARDEN RESTAURANTS INC For: Mar 20
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 19, 2015
(Date of earliest event reported)
DARDEN RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
Commission File Number: 1-13666
Florida | 59-3305930 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | |
1000 Darden Center Drive, Orlando, Florida 32837
(Address of principal executive offices, including zip code)
(407) 245-4000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Darden Restaurants, Inc. (the “Company”) issued a news release dated March 20, 2015, entitled “Darden Restaurants Reports Strong Third Quarter Results; Increases Earnings Outlook for the Full Fiscal Year; and Declares Regular Quarterly Dividend,” a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Item 2.02 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On March 19, 2015, the Company entered into an addendum (the “Letter”) to an agreement between the Company and C. Bradford Richmond, the Company’s Senior Vice President and Chief Financial Officer, dated November 25, 2014 (the “Agreement”) to extend Mr. Richmond’s term of employment with the Company until the later of July 28, 2015 and the appointment of his successor (the “Separation Date”). If Mr. Richmond’s successor is appointed prior to July 28, 2015, then, from the date of such appointment until the Separation Date, Mr. Richmond’s title will change from Senior Vice President and Chief Financial Officer of the Company to Senior Vice President, Finance, and Mr. Richmond will assist in the leadership onboarding and transition of his successor.
Pursuant to the terms of the Letter, Mr. Richmond will receive his regular base salary through the Separation Date. In addition, to the extent bonuses are payable under the Company’s Management and Professional Incentive Plan (the “MIP”), Mr. Richmond will be eligible to receive a full bonus award for the 2015 fiscal year ending May 31, 2015 and a pro-rated bonus award for the 2016 fiscal year for his period of active service during such fiscal year. The Company will also make a full contribution on Mr. Richmond’s behalf under the Company’s non-qualified deferred compensation plan for the 2015 fiscal year in accordance with the terms of the plan and will make a pro-rated contribution for the 2016 fiscal year for his period of active employment.
Except as provided in the Letter, the other provisions of the Agreement are unchanged and will remain in full force and effect.
The preceding description of the Letter is qualified in its entirety by reference to the full text of the Letter, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description | |
10.1 | Letter between Darden Restaurants, Inc. and C. Bradford Richmond dated March 19, 2015. | |
99.1 | News release dated March 20, 2015, entitled “Darden Restaurants Reports Strong Third Quarter Results; Increases Earnings Outlook for the Full Fiscal Year; and Declares Regular Quarterly Dividend.” | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
DARDEN RESTAURANTS, INC. | |
By: | /s/ C. Bradford Richmond |
C. Bradford Richmond | |
Senior Vice President and Chief Financial Officer | |
Date: March 20, 2015
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EXHIBIT INDEX
Exhibit Number | Description of Exhibit | |
10.1 | Letter between Darden Restaurants, Inc. and C. Bradford Richmond dated March 19, 2015. | |
99.1 | News release dated March 20, 2015, entitled “Darden Restaurants Reports Strong Third Quarter Results; Increases Earnings Outlook for the Full Fiscal Year; and Declares Regular Quarterly Dividend.” | |
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Exhibit 10.1
March 19, 2015
C. Brad Richmond
10844 Emerald Chase Drive
Orlando, FL 32836
Dear Brad,
Reference is made to your Agreement with Darden Restaurants, Inc. (the “Company”), dated November 25, 2014 (the “Agreement”). This letter (the “Letter”) confirms that your termination from active employment with the Company and all of its subsidiaries will occur upon the later of July 28, 2015 and the appointment of your successor (the “Separation Date”). If your successor is appointed prior to July 28, 2015, then, from the date of such appointment to the Separation Date, you will no longer hold the title of SVP, CFO and will instead hold the title of SVP, Finance, and your role will be to assist in the leadership onboarding and transition of your successor.
You will remain actively employed and be paid your regular salary through the Separation Date. To the extent any bonus is paid pursuant to the Management and Professional Incentive Plan (the “MIP”) for the applicable fiscal year, you will be eligible to receive a full MIP bonus award for the 2015 fiscal year and a prorated MIP bonus award for the 2016 fiscal year for your period of active employment. You will be eligible to receive a full FlexComp award for the 2015 fiscal year and a prorated FlexComp award for the 2016 fiscal year for your period of active employment. Your prorated MIP bonus award, if any, and prorated FlexComp award for the 2016 fiscal year will each be paid in August 2016. You must return all Company Property (as defined in the Agreement) to the Company’s Chief Human Resources Officer within 24 hours of the Separation Date.
Except as specifically provided in this Letter, the Agreement will remain unchanged and in full force and effect.
Brad, if this Letter correctly sets forth our agreement, please sign and date the enclosed copy where indicated and return it to me. If you have any questions, please do not hesitate to contact me.
Sincerely,
BY: /s/ Gene Lee 3/19/15
Gene Lee, Chief Executive Officer Date
ACKNOWLEDGED AND AGREED
/s/ C. Bradford Richmond 3/19/15
C. Bradford Richmond Date
FOR RELEASE | Contact: | |
(Analysts) Kevin Kalicak | (407) 245-5870 | |
(Media) Rich Jeffers | (407) 245-4189 | |
DARDEN RESTAURANTS REPORTS STRONG THIRD QUARTER RESULTS;
INCREASES EARNINGS OUTLOOK FOR THE FULL FISCAL YEAR;
AND DECLARES REGULAR QUARTERLY DIVIDEND
ORLANDO, Fla., Mar. 20, 2015 - Darden Restaurants, Inc. (NYSE: DRI) today reported its financial results for the third quarter ended February 22, 2015.
Third Quarter 2015 Financial Highlights Versus Same Period a Year Ago
• | Total sales from continuing operations in the third quarter increased 6.9% to $1.73 billion |
• | Adjusted earnings per diluted share* increased 39% to $0.99 |
• | On a GAAP basis, earnings per diluted share increased 55% to $1.01 |
• | Combined Darden comparable same-restaurant sales for the quarter were +3.6%: |
◦ | +2.2% for Olive Garden |
◦ | +5.4% for LongHorn Steakhouse |
◦ | +5.4% for Yard House |
◦ | +6.1% for The Capital Grille |
◦ | +5.2% for Seasons 52 |
◦ | +3.2% for Bahama Breeze |
◦ | +9.6% for Eddie V’s |
• | The company projects fourth quarter earnings per diluted share of $0.91 to $0.94 |
• | The Board of Directors declared a regular dividend of $0.55 per share to be paid in the fourth quarter |
* See the ‘Adjustments to Earnings Per Share’ section below for more details
“We delivered solid improvement in our financial results this quarter thanks to the hard work our teams are doing to grow same-restaurant sales and control costs,” said Darden CEO Gene Lee. “Our strategy of getting back to basics and elevating the food, service, and atmosphere in our restaurants in order to deliver the best possible guest experience is driving these sales and profitability improvements. I’m proud of the increased engagement and effort of our teams and the momentum we have created, but we still have progress to make.”
Adjustments to Earnings Per Share
• | Reported net earnings per diluted share from continuing operations for the third quarter were positively impacted by approximately $0.02. This includes approximately: |
◦ | +5 cents of tax benefits related to the final disposition of our interest in the aquaculture investment |
◦ | -2 cents related to impairments of excess land parcels held for sale |
◦ | -1 cent for other strategic action costs associated with the evaluation of our real estate portfolio |
• | Excluding adjustments, earnings per diluted share were $1.01 |
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Fiscal 2015 Third Quarter Operating Summary Versus Same Period a Year Ago
• | Olive Garden grew total sales by 3.0% to $957 million |
◦ | Added nine net new restaurants |
◦ | Increased operating profit and profit as a percentage of sales |
• | LongHorn grew total sales by 11.4% to $404 million |
◦ | Added 25 net new restaurants |
◦ | Increased operating profit and profit as a percentage of sales |
• | Specialty Restaurants grew total sales by 14.7% to $367 million |
◦ | Added 16 net new restaurants |
◦ | Increased operating profit and profit as a percentage of sales |
Fiscal Month U.S. Same-Restaurant Sales Results
Olive Garden | December | January | February | |||
Same-Restaurant Sales | 2.4 | % | 2.5 | % | 1.6 | % |
Same-Restaurant Traffic | -0.8 | % | -1.1 | % | -3.0 | % |
Pricing | 1.6 | % | 1.6 | % | 1.8 | % |
Menu-mix | 1.6 | % | 2.0 | % | 2.8 | % |
LongHorn Steakhouse | December | January | February | |||
Same-Restaurant Sales | 4.4 | % | 9.2 | % | 2.8 | % |
Same-Restaurant Traffic | 0.3 | % | 5.4 | % | -1.8 | % |
Pricing | 2.1 | % | 2.2 | % | 2 | % |
Menu-mix | 2.0 | % | 1.6 | % | 2.6 | % |
Note: The Company estimates that less severe winter weather positively impacted these same-restaurant sales results by 210 basis points in fiscal December and 110 basis points in fiscal January and more severe winter weather negatively affected fiscal February same-restaurant sales by 30 basis points.
Fiscal 2015 Financial Outlook
The company projects fourth quarter earnings per diluted share of $0.91 to $0.94, an increase of between 69% and 74% from the fourth quarter of 2014 and has increased expectations for fiscal 2015. The current projected range for annual adjusted earnings per diluted share is projected to be between $2.45 and $2.48 (or $1.50 and $1.53 on an unadjusted basis) an increase of between 43% and 45% from fiscal 2014, which reflects the impact of the accelerated share repurchase program on our annual weighted average share count. This reflects the expectation that the Company’s combined U.S. same-restaurant sales growth this fiscal year will be 2.0% to 2.5% and the positive $0.05 per share impact of a 53rd operating week in the fiscal year.
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Fiscal 2015 Reported to Adjusted Earnings Reconciliation | |||
Q3 | Q4E* | AnnualE* | |
Diluted Net EPS from Continuing Operations | $1.01 | $0.91 - $0.94 | $1.50 - $1.53 |
Red Lobster-Related Shared Support Costs | 0.00 | 0.02 | |
Other Strategic Action Plan Costs | 0.01 | 0.12 | |
Debt Breakage Costs | 0.00 | 0.42 | |
Asset Impairments and Other One-Time Costs | (0.03) | 0.40 | |
Adjusted Diluted Net EPS from Continuing Operations | $0.99 | $0.91 - $0.94 | $2.45 - $2.48 |
Adjusted FY15 EPS vs FY14 Adjusted EPS | $0.28 | $0.37 - $0.40 | $0.74 - $0.77 |
* Reflects the additional operating week vs FY14 | |||
Dividend Declared
Darden’s Board of Directors declared a regular quarterly cash dividend of $0.55 per share on the Company’s outstanding common stock. The dividend is payable on May 1, 2015 to shareholders of record at the close of business on April 10, 2015.
Investor Conference Call
The Company will host its Fiscal 2015 Third Quarter conference call on Friday, March 20, 2015 at 8:30 am ET. The conference call will be broadcast live over the Internet. Gene Lee, CEO, and other senior management invite you to listen to a discussion of third quarter results. To listen to the call live, please go to http://www.videonewswire.com/event.asp?id=101839 at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot access the Internet, please dial 1-800-369-3182 and enter passcode 9026320. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. In addition, at the conclusion of the call, we will post a supplemental presentation on the Investors section of our website at: www.darden.com that provides more context on our third quarter results.
About Darden
Darden Restaurants, Inc., (NYSE: DRI) owns and operates more than 1,500 restaurants that generate over $6.3 billion in annual sales. Headquartered in Orlando, Florida, and employing more than 150,000 people, Darden is recognized for a culture that rewards caring for and responding to people. Our restaurant brands -Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s and Yard House - reflect the rich diversity of those who dine with us. Our brands are built on deep insights into what our guests want. For more information, please visit www.darden.com.
Information about Forward-Looking Statements
Forward-looking statements in this communication regarding our expected earnings performance and all other statements that are not historical facts, including without limitation statements concerning our future economic performance, are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of the date on which such statements are first made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. We wish to caution investors not to place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to materially differ from those anticipated in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form 10-Q and Form 8-K reports. These risks and uncertainties include the ability to achieve Darden's strategic plan to enhance shareholder value including realizing the expected benefits from the sale of Red Lobster, food safety and
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food-borne illness concerns, litigation, unfavorable publicity, risks relating to public policy changes and federal, state and local regulation of our business, labor and insurance costs, technology failures including failure to maintain a secure cyber network, failure to execute a business continuity plan following a disaster, health concerns including virus outbreaks, intense competition, failure to drive sales growth, our plans to expand our smaller brands Bahama Breeze, Seasons 52 and Eddie V's, higher-than-anticipated costs to open, close, relocate or remodel restaurants, a failure to execute innovative marketing tactics, a failure to develop and recruit effective leaders, a failure to address cost pressures, shortages or interruptions in the delivery of food and other products and services, adverse weather conditions and natural disasters, volatility in the market value of derivatives, economic factors specific to the restaurant industry and general macroeconomic factors including interest rates, disruptions in the financial markets, risks of doing business with franchisees and vendors in foreign markets, failure to protect our intellectual property, impairment in the carrying value of our goodwill or other intangible assets, an inability or failure to manage the accelerated impact of social media and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.
Non-GAAP Information
The information in this press release includes financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”), such as adjusted earnings per diluted share from continuing operations. The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company’s businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of these non-GAAP measures are included in this release and can be found under the “Financial Information” section of the “Investors” section of the Company’s website (www.darden.com).
Reported to Adjusted Earnings Reconciliation | ||||||||
Q3 2014 | Q3 2015 | % Change | ||||||
Diluted Net EPS from Continuing Operations | $ | 0.65 | $ | 1.01 | 55 | % | ||
Red Lobster-Related Shared Support Costs | $ | 0.04 | $ | 0.00 | ||||
Other Strategic Action Plan Costs | $ | 0.01 | $ | 0.01 | ||||
Asset Impairments and Other One-Time Costs | $ | 0.01 | $ | (0.03 | ) | |||
Adjusted Diluted Net EPS from Continuing Operations | $ | 0.71 | $ | 0.99 | 39% | |||
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DARDEN RESTAURANTS, INC.
NUMBER OF COMPANY-OWNED RESTAURANTS
2/22/15 | 2/23/14 | |||||
839 | Olive Garden USA | 830 | ||||
6 | Olive Garden Canada | 6 | ||||
845 | Total Olive Garden | 836 | ||||
478 | LongHorn Steakhouse | 453 | ||||
55 | The Capital Grille | 53 | ||||
36 | Bahama Breeze | 37 | ||||
42 | Seasons 52 | 38 | ||||
15 | Eddie V's | 13 | ||||
57 | Yard House | 48 | ||||
— | Other | 4 | ||||
1,528 | Darden Continuing Operations | 1,482 | ||||
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DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In millions, except per share data)
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
2/22/2015 | 2/23/2014 | 2/22/2015 | 2/23/2014 | ||||||||||||
Sales | $ | 1,730.9 | $ | 1,618.5 | $ | 4,885.7 | $ | 4,635.5 | |||||||
Costs and expenses: | |||||||||||||||
Cost of sales: | |||||||||||||||
Food and beverage | 530.7 | 485.5 | 1,518.2 | 1,386.6 | |||||||||||
Restaurant labor | 535.6 | 508.9 | 1,550.7 | 1,491.9 | |||||||||||
Restaurant expenses | 276.0 | 271.4 | 825.7 | 795.9 | |||||||||||
Total cost of sales (1) | $ | 1,342.3 | $ | 1,265.8 | $ | 3,894.6 | $ | 3,674.4 | |||||||
Selling, general and administrative | 134.2 | 154.2 | 484.6 | 494.3 | |||||||||||
Depreciation and amortization | 79.6 | 76.3 | 238.4 | 226.0 | |||||||||||
Interest, net | 23.3 | 33.1 | 168.3 | 98.8 | |||||||||||
Asset impairment, net | 4.4 | — | 51.0 | 1.2 | |||||||||||
Total costs and expenses | $ | 1,583.8 | $ | 1,529.4 | $ | 4,836.9 | $ | 4,494.7 | |||||||
Earnings before income taxes | 147.1 | 89.1 | 48.8 | 140.8 | |||||||||||
Income tax (benefit) expense | 18.7 | 2.5 | (29.5 | ) | 5.9 | ||||||||||
Earnings from continuing operations | $ | 128.4 | $ | 86.6 | $ | 78.3 | $ | 134.9 | |||||||
Earnings from discontinued operations, net of tax expense of $3.1, $9.4, $322.4 and $22.6, respectively | 5.4 | 23.1 | 525.9 | 64.8 | |||||||||||
Net earnings | $ | 133.8 | $ | 109.7 | $ | 604.2 | $ | 199.7 | |||||||
Basic net earnings per share: | |||||||||||||||
Earnings from continuing operations | $ | 1.03 | $ | 0.66 | $ | 0.61 | $ | 1.03 | |||||||
Earnings from discontinued operations | 0.04 | 0.18 | 4.10 | 0.50 | |||||||||||
Net earnings | $ | 1.07 | $ | 0.84 | $ | 4.71 | $ | 1.53 | |||||||
Diluted net earnings per share: | |||||||||||||||
Earnings from continuing operations | $ | 1.01 | $ | 0.65 | $ | 0.60 | $ | 1.02 | |||||||
Earnings from discontinued operations | 0.04 | 0.17 | 4.04 | 0.48 | |||||||||||
Net earnings | $ | 1.05 | $ | 0.82 | $ | 4.64 | $ | 1.50 | |||||||
Average number of common shares outstanding: | |||||||||||||||
Basic | 124.6 | 131.3 | 128.2 | 130.7 | |||||||||||
Diluted | 126.9 | 133.4 | 130.1 | 132.9 | |||||||||||
(1) Excludes restaurant depreciation and amortization as follows: | $ | 73.8 | $ | 70.8 | $ | 219.8 | $ | 209.8 | |||||||
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DARDEN RESTAURANTS, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
2/22/2015 | 5/25/2014 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 436.2 | $ | 98.3 | |||
Receivables, net | 64.0 | 83.8 | |||||
Inventories | 172.8 | 196.8 | |||||
Prepaid income taxes | 15.5 | 10.9 | |||||
Prepaid expenses and other current assets | 73.5 | 72.3 | |||||
Deferred income taxes | 174.5 | 124.0 | |||||
Assets held for sale | 45.4 | 1,390.3 | |||||
Total current assets | $ | 981.9 | $ | 1,976.4 | |||
Land, buildings and equipment, net | 3,288.5 | 3,381.0 | |||||
Goodwill | 872.4 | 872.5 | |||||
Trademarks | 574.6 | 574.6 | |||||
Other assets | 285.5 | 296.2 | |||||
Total assets | $ | 6,002.9 | $ | 7,100.7 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 186.0 | $ | 233.1 | |||
Short-term debt | — | 207.6 | |||||
Accrued payroll | 125.7 | 125.7 | |||||
Accrued income taxes | 116.3 | — | |||||
Other accrued taxes | 49.1 | 64.5 | |||||
Unearned revenues | 379.8 | 299.7 | |||||
Current portion of long-term debt | 15.0 | 15.0 | |||||
Other current liabilities | 478.9 | 457.4 | |||||
Liabilities associated with assets held for sale | — | 215.5 | |||||
Total current liabilities | $ | 1,350.8 | $ | 1,618.5 | |||
Long-term debt, less current portion | 1,461.7 | 2,481.4 | |||||
Deferred income taxes | 321.0 | 286.1 | |||||
Deferred rent | 221.0 | 206.2 | |||||
Obligations under capital leases, net of current installments | 50.1 | 52.0 | |||||
Other liabilities | 360.5 | 299.6 | |||||
Total liabilities | $ | 3,765.1 | $ | 4,943.8 | |||
Stockholders’ equity: | |||||||
Common stock and surplus | $ | 1,338.8 | $ | 1,302.2 | |||
Retained earnings | 989.0 | 995.8 | |||||
Treasury stock | (7.8 | ) | (7.8 | ) | |||
Accumulated other comprehensive income (loss) | (77.8 | ) | (128.1 | ) | |||
Unearned compensation | (4.4 | ) | (5.2 | ) | |||
Total stockholders’ equity | $ | 2,237.8 | $ | 2,156.9 | |||
Total liabilities and stockholders’ equity | $ | 6,002.9 | $ | 7,100.7 | |||
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DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended | |||||||
2/22/2015 | 2/23/2014 | ||||||
Cash flows—operating activities | |||||||
Net earnings | $ | 604.2 | $ | 199.7 | |||
Earnings from discontinued operations, net of tax | (525.9 | ) | (64.8 | ) | |||
Adjustments to reconcile net earnings from continuing operations to cash flows: | |||||||
Depreciation and amortization | 238.4 | 226.0 | |||||
Stock-based compensation expense | 41.3 | 33.2 | |||||
Change in current assets and liabilities and other, net | 198.0 | 112.3 | |||||
Net cash provided by operating activities of continuing operations | $ | 556.0 | $ | 506.4 | |||
Cash flows—investing activities | |||||||
Purchases of land, buildings and equipment | (230.1 | ) | (337.5 | ) | |||
Proceeds from disposal of land, buildings and equipment | 24.8 | 1.6 | |||||
Increase in other assets | (3.5 | ) | (14.0 | ) | |||
Net cash used in investing activities of continuing operations | $ | (208.8 | ) | $ | (349.9 | ) | |
Cash flows—financing activities | |||||||
Proceeds from issuance of common stock | 107.1 | 43.8 | |||||
Income tax benefits credited to equity | 9.1 | 9.5 | |||||
Dividends paid | (209.3 | ) | (215.7 | ) | |||
Repurchases of common stock | (502.3 | ) | (0.5 | ) | |||
ESOP note receivable repayment | 0.8 | 0.7 | |||||
(Repayments) proceeds from issuance of short-term debt, net | (207.6 | ) | 17.0 | ||||
Repayment of long-term debt | (1,065.9 | ) | — | ||||
Payment of debt issuance costs | — | (1.4 | ) | ||||
Principal payments on capital leases | (1.7 | ) | (1.5 | ) | |||
Proceeds from financing lease obligation | 93.1 | — | |||||
Net cash used in financing activities of continuing operations | $ | (1,776.7 | ) | $ | (148.1 | ) | |
Cash flows—discontinued operations | |||||||
Net cash (used in) provided by operating activities of discontinued operations | (216.6 | ) | 160.3 | ||||
Net cash provided by (used in) investing activities of discontinued operations | 1,984.0 | (129.9 | ) | ||||
Net cash provided by discontinued operations | $ | 1,767.4 | $ | 30.4 | |||
Increase in cash and cash equivalents | 337.9 | 38.8 | |||||
Cash and cash equivalents - beginning of period | 98.3 | 88.2 | |||||
Cash and cash equivalents - end of period | $ | 436.2 | $ | 127.0 | |||
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