Financial Review 2004 Consolidated Statements  of Earnings (In thousands, except per share data)  May 30, 2004  May 25, 2003  May 26, 2002 Sales $5,003,355  $4,654,971  $ 4,366,911 Costs and expenses:  Cost of sales:  Food and beverage  1,526,875  1,449,162  1,384,481 Restaurant labor  1,601,258  1,485,046  1,373,416 Restaurant expenses  767,584  703,554 628,701 Total cost of sales, excluding restaurant depreciation and amortization of $195,486, $177,127, and $155,837, respectively  $3,895,717 $ 3,637,762 $3,386,598  Selling, general, and administrative  472,109  431,722 417,158  Depreciation and amortization  210,004  191,218  165,829  Interest, net  43,659  42,597 36,585  Asset impairment and restructuring charges (credits), net  41,868  3,924  (2,568) Total costs and expenses  $4,663,357  $ 4,307,223  $4,003,602  Earnings before income taxes  339,998  347,748 363,309  Income taxes  108,536 115,488 125,521  Net earnings $ 231,462  $ 232,260 $ 237,788  Net earnings per share:  Basic $ 1.42  $ 1.36  $ 1.36  Diluted  $ 1.36  $ 1.31 $ 1.30  Average number of common shares outstanding:  Basic 163,500  170,300 174,700  Diluted  169,700  177,400 183,500  Fiscal YearEnded See accompanying notes to consolidated financial statements. 34  Darden Restaurants