Financial Review 2004 C o n s o l i d a t e d S t a t e m e n t s of Changes in Stockholders’  Equity and Accumulated Other Comprehensive Income (Loss) See accompanying notes to consolidated financial statements. 36  Darden Restaurants Common  Accumulated Other  Total Stock and  Retained  Treasury  Comprehensive  Unearned  Officer Notes  Stockholders’ (In thousands, except per share data)  Surplus  Earnings  Stock  Income (Loss)  Compensation  Receivable  Equity 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 (loss): 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 (438 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 (loss):  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 (148 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  Comprehensive income:  Net earnings  –  231,462  –  –  –  –  231,462 Other comprehensive income (loss):  Foreign currency adjustment  –  –  –  394  –  –  394 Change in fair value of derivatives, net of tax of $51  205  205 Minimum pension liability adjustment,  net of tax benefit of $45  –  –  –  (69)  –  –  (69) Total comprehensive income  231,992 Cash dividends declared ($0.080 per share)  –  (12,984)  –  –  –  –  (12,984) Stock option exercises (3,464 shares)  30,972  –  3,685  34,657 Issuance of restricted stock (409 shares), net of forfeiture adjustments  7,605  –  173  –  (7,778)  –  – Earned compensation  –  –  4,198   –  4,198 ESOP note receivable repayments  –  –  5,027  –  5,027 Income tax benefits credited to equity  15,650  –  –  15,650 Purchases of common stock for treasury (10,749 shares)  –  –  (235,462)  –  –  (235,462) Issuance of treasury stock under Employee Stock Purchase Plan and other plans (357 shares)  3,931  –  2,129  –  –  –  6,060 Issuance of officer notes, net  –  –  441  441 Balance at May 30, 2004  $1,584,115  $1,197,921  $(1,483,768)  $ (9,959)  $ (41,401)  $(1,138)  $1,245,770