Table of Contents Strategic Framework 2003 Financial Highlights Operating Company Overviews Great Expectations   Ambience   Service   Attentiveness   Knowledge   Friendliness   Cleanliness Letter To Shareholders Operating Highlights   Red Lobster   Olive Garden   Bahama Breeze   Smokey Bones BBQ New Business Opportunities Financial Review 2003   Management’s Discussion and Analysis...   Report of Management Responsibilities   Independent Auditors’ Report   Consolidated Statements of Earnings   Consolidated Balance Sheets   Consolidated Statements of Changes...   Consolidated Statements of Cash Flows   Notes to Consolidated Financial Statements Corporate Responsibility Board of Directors Corporate Officers Shareholders Information
Consolidated Balance Sheets (In thousands) May 25, 2003 May 26, 2002   ASSETS               Current assets:                 Cash and cash equivalents   $ 48,630     $ 152,875       Short-term investments   –     9,904       Receivables   29,023     29,089       Inventories   173,644     172,413       Assets held for disposal   –     3,868       Prepaid expenses and other current assets   25,126     23,076       Deferred income taxes   49,206     52,127           Total current assets $ 325,629   $ 443,352     Land, buildings, and equipment   2,157,132     1,926,947     Other assets   181,872     159,437           Total assets $ 2,664,633   $ 2,529,736     LIABILITIES AND STOCKHOLDERS’ EQUITY               Current liabilities:                 Accounts payable $ 175,991   $ 160,064       Accrued payroll   85,975     87,936       Accrued income taxes   67,975     68,504       Other accrued taxes   35,069     30,474       Unearned revenues   72,698     56,632       Other current liabilities   202,201     197,404           Total current liabilities $ 639,909   $ 601,014     Long-term debt   658,086     662,506     Deferred income taxes   150,537     117,709     Other liabilities   19,910     19,630           Total liabilities $ 1,468,442   $ 1,400,859     Stockholders’ equity:                 Common stock and surplus, no par value.                   Authorized 500,000 shares; issued 261,463 and                   258,426 shares, respectively; outstanding 164,950                   and 172,135 shares, respectively $ 1,525,957   $ 1,474,054       Preferred stock, no par value. Authorized 25,000 shares;                   none issued and outstanding   –     –       Retained earnings   979,443     760,684       Treasury stock, 96,513 and 86,291 shares,                   at cost, respectively   (1,254,293 )    (1,044,915 )      Accumulated other comprehensive income   (10,489 )    (12,841 )      Unearned compensation   (42,848 )    (46,108 )      Officer notes receivable   (1,579 )    (1,997 )          Total stockholders’ equity $ 1,196,191   $ 1,128,877           Total liabilities and stockholders’ equity $ 2,664,633   $ 2,529,736   See accompanying notes to consolidated financial statements.