Brinker International Inc.®

Annual Report 2006


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BRINKER INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)

  2006   2005
ASSETS
Current Assets:
    Cash and cash equivalents
  $ 55,615       $ 41,859    
    Accounts receivable   52,540     43,592  
    Inventories   40,330     48,647  
    Prepaid expenses and other   85,187     77,069  
    Deferred income taxes   8,638     21,956  
    Current assets of discontinued operations       79,842  
        Total current assets   242,310     312,965  
Property and Equipment, at Cost:
    Land
  279,369     284,885  
    Buildings and leasehold improvements   1,715,917     1,507,587  
    Furniture and equipment   745,812     697,352  
    Construction-in-progress   94,734     81,622  
    2,835,832     2,571,446  
    Less accumulated depreciation and amortization   (1,043,108 )   (924,980 )
        Net property and equipment   1,792,724     1,646,466  
Other Assets:
    Goodwill
  145,479     124,749  
    Other   41,266     71,944  
        Total other assets   186,745     196,693  
        Total assets $ 2,221,779   $ 2,156,124  
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
    Current installments of long-term debt
$ 2,197   $ 1,805  
    Accounts payable   151,216     133,096  
    Accrued liabilities   314,509     261,924  
    Income taxes payable   29,453     22,739  
    Current liabilities of discontinued operations       10,400  
        Total current liabilities   497,375     429,964  
Long-term debt, less current installments   500,515     406,505  
Deferred income taxes   7,016     56,189  
Other liabilities   141,041     163,184  
Commitments and Contingencies (Notes 9 and 13)
Shareholders' Equity:
    Common stock—250,000,000 authorized shares; $.10 par value;
        117,499,541 shares issued and 83,539,647 shares outstanding at June 28,
        2006, and 117,499,541 shares issued and 89,182,804 shares outstanding
        at June 29, 2005
  11,750     11,750  
    Additional paid-in capital   406,626     369,813  
    Accumulated other comprehensive income   773     700  
    Retained earnings   1,608,661     1,421,866  
    2,027,810     1,804,129  
    Less treasury stock, at cost (33,959,894 shares at June 28, 2006 and
        28,316,737 shares at June 29, 2005)
  (951,978 )   (703,847 )
        Total shareholders' equity   1,075,832     1,100,282  
        Total liabilities and shareholders' equity $ 2,221,779   $ 2,156,124  

See accompanying notes to consolidated financial statements.

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