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 Statements of Changes in Stockholders’ Equity and Accumulated Other Comprehensive Income     Common               Accumulated                         Stock               Other         Officer   Total       and   Retained     Treasury   Comprehensive   Unearned   Notes   Stockholders’   (In thousands, except per share data)   Surplus   Earnings     Stock   Income   Compensation   Receivable   Equity   Balance at May 28, 2000 $ 1,351,707   $ 344,579   $ (666,837 ) $ (12,457 ) $ (56,522 ) $ (1,868 ) $ 958,602   Comprehensive income:                                              Net earnings   –     197,000     –     –     –     –     197,000      Other comprehensive income, foreign                                                 currency adjustment –     –     –     (645 )   –     –     (645 )          Total comprehensive income                                       196,355   Cash dividends declared ($0.053 per share)   –     (9,458 )   –     –     –     –     (9,458 ) Stock option exercises (4,670 shares)   33,158     –     –     –     –     –     33,158   Issuance of restricted stock (443 shares),                                              net of forfeiture adjustments   3,986     –     1,035     –     (5,109 )   –     (88 ) Earned compensation   –     –     –     –     4,164     –     4,164   ESOP note receivable repayments   –     –     –     –     8,145     –     8,145   Income tax benefits credited to equity   15,287     –     –     –     –     –     15,287   Purchases of common stock for     treasury (12,660 shares)   –     –     (176,511 )   –     –     –     (176,511 ) Issuance of treasury stock under Employee Stock                                              Purchase Plan and other plans (336 shares)   1,661     –     2,059     –     –     –     3,720   Issuance of officer notes, net   –     –     –     –     –     (56 )   (56 ) Balance at May 27, 2001 $ 1,405,799   $ 532,121   $ (840,254 ) $ (13,102 ) $ (49,322 ) $ (1,924 ) $ 1,033,318   Comprehensive income:                                              Net earnings   –     237,788     –     –     –     –     237,788      Other comprehensive income:                                                 Foreign currency adjustment   –     –     –     169     –     –     169         Change in fair value of derivatives,                                                    net of tax of $234   –     –     –     380     –     –     380         Minimum pension liability adjustment,                                                    net of tax benefit of $177   –     –     –     (288 )   –     –     (288 )             Total comprehensive income                                       238,049   Cash dividends declared ($0.053 per share)   –     (9,225 )   –     –     –     –     (9,225 ) Stock option exercises (4,310 shares)   34,742     –     1,364     –     –     –     36,106   Issuance of restricted stock (374 shares),                                              net of forfeiture adjustments   5,666     –     815     –     (6,493 )   –     (12 ) Earned compensation   –     –     –     –     4,392     –     4,392   ESOP note receivable repayments   –     –     –     –     5,315     –     5,315   Income tax benefits credited to equity   24,989     –     –     –     –     –     24,989   Purchases of common stock for     treasury (8,972 shares)   –     –     (208,578 )   –     –     –     (208,578 ) Issuance of treasury stock under                                              Employee Stock Purchase Plan and                                              other plans (290 shares)   2,858     –     1,738     –     –     –     4,596   Issuance of officer notes, net   –     –     –     –     –     (73 )   (73 ) Balance at May 26, 2002 $ 1,474,054     $ 760,684    $ (1,044,915 )    $ (12,841 )     $ (46,108 )   $ (1,997 )    $ 1,128,877   Comprehensive income:                                            Net earnings –     232,260     –     –     –     –     232,260      Other comprehensive income:                                               Foreign currency adjustment –     –     –     2,579     –     –     2,579         Change in fair value of derivatives, net of tax of $0 –     –     –     2     –     –     2         Minimum pension liability adjustment,                                                  net of tax benefit of $141 –     –     –     (229 )   –     –     (229 )             Total comprehensive income                                     234,612   Cash dividends declared ($0.080 per share) –     (13,501 )   –     –     –     –     (13,501 ) Stock option exercises (3,133 shares) 27,261     –     1,652     –     –     –     28,913   Issuance of restricted stock (177 shares), net                                            of forfeiture adjustments 4,429     –     600     –     (5,029 )   –     –   Earned compensation –     –     –     –     3,579     –     3,579   ESOP note receivable repayments –     –     –     –     4,710     –     4,710   Income tax benefits credited to equity 16,385     –     –     –     –     –     16,385   Purchases of common stock for treasury (10,746 shares) –     –     (213,311 )   –     –     –     (213,311 ) Issuance of treasury stock under Employee                                            Stock Purchase Plan and other plans (280 shares)   3,828     –     1,681     –     –     –     5,509   Issuance of officer notes, net   –     –     –     –     –     418     418   Balance at May 25, 2003 $ 1,525,957   $ 979,443   $ (1,254,293) ) $ (10,489) ) $ (42,848) ) $ (1,579) ) $ 1,196,191   See accompanying notes to consolidated financial statements.