MINNEAPOLIS, March 19, 2014 /PRNewswire/ -- General Mills
(NYSE: GIS) today reported results for the third quarter of fiscal
2014. Sales and operating profit for the 13 weeks ended
Feb. 23, 2014, reflect lower volumes,
consistent with generally weak food industry trends during this
period; the impact of increased consumer marketing and
merchandising investment in the company's U.S. yogurt business; and
negative foreign currency effects.
Fiscal 2014 Third Quarter Financial Summary
- Net sales of $4.38 billion
were 1 percent below year ago levels.
- Adjusted segment operating profit was $690 million, down 10 percent from year-ago
results that grew 13 percent. (Please see Note 9 below for
reconciliation of this non-GAAP measure)
- Diluted earnings per share (EPS) totaled 64 cents, up 7 percent from 60 cents a year ago.
- Adjusted diluted EPS, which excludes certain items affecting
comparability, totaled 62 cents this
year compared to 66 cents in last
year's third quarter. (Please see Note 9 below)
Net sales for the third quarter of fiscal 2014 totaled
$4.38 billion, down 1 percent from
year-ago levels. Foreign exchange translation reduced net sales
growth by 1 percentage point. Net price realization and mix
contributed 1 point of net sales growth, while lower pound volume
reduced sales growth by 1 point. Third-quarter gross margin
was above year-ago levels including changes in mark-to-market
valuation of certain commodities and grain inventories.
Excluding mark-to-market effects, gross margin declined for the
quarter (please see Note 9 below for reconciliation of this
non-GAAP measure). Advertising and media expense was 3
percent below year-ago levels, while other consumer marketing
spending was up 5 percent in the period. Adjusted segment
operating profit was $690 million, 10
percent below prior-year results excluding the impact of
Venezuela devaluation (please
see Note 9 below). Third-quarter net earnings
attributable to General Mills totaled $411
million and diluted earnings per share totaled 64 cents per share. Adjusted diluted EPS,
which excludes certain items affecting comparability, totaled
62 cents per share in the third
quarter of fiscal 2014 compared to 66
cents a year ago (please see Note 9 below).
Chairman and Chief Executive Officer Ken
Powell said, "This year's severe winter weather dampened
sales performance across the food industry, and third-quarter
results for our U.S. Retail and Convenience Stores and Foodservice
segments reflect that disruption. International segment
results were stronger, with constant-currency sales gains in every
region including double-digit growth in both Asia-Pacific and Latin America."
Nine-month Financial Summary
- Net sales through the first nine months of fiscal 2014 grew
2 percent to $13.63 billion.
- Adjusted segment operating profit was $2.42 billion, 3 percent below prior year
results. (Please see Note 9 below)
- Diluted EPS totaled $2.18
compared to $2.24 a year
ago.
- Adjusted diluted EPS totaled $2.15 for the first nine months of 2014 compared
to $2.18 a year ago. (Please
see Note 9 below)
U.S. Retail products contributing to year-to-date net sales
growth include Honey Nut Cheerios, Cinnamon Toast Crunch and
Cascadian Farm organic cereals; Yoplait Greek yogurt; Fiber One
protein bars, Nature Valley oatmeal squares and Larabar snacks; Old
El Paso shelf-stable and frozen Mexican food items; Pillsbury
refrigerated biscuits, sweet rolls and gluten-free dough products;
and Totino's frozen pizza and snacks. International net sales
growth included strong contributions from Haagen-Dazs ice cream and
Wanchai Ferry frozen dim sum
products in China, and Yoki
popcorn varieties and Kit Facil dinner kits in Brazil.
U.S. Retail Segment Results
Third-quarter net sales for General Mills' U.S. Retail segment
declined 2 percent to $2.62
billion. Lower pound volume reduced net sales growth
by 1 percentage point, and net price realization and mix also
subtracted 1 point of net sales growth. Advertising and media
expense declined 1 percent in the period. Segment operating
profit totaled $517 million, 11
percent below strong year-ago results. This primarily reflects the
impact of higher dairy input costs and increased marketing and
merchandising investment for the U.S. yogurt business.
Through the first nine months of fiscal 2014, U.S. Retail
segment net sales totaled $8.17
billion. This essentially matched prior-year levels,
as a 1 percent decline in pound volume was offset by higher net
price realization and mix. Advertising and media expense was
up 1 percent through the first nine months, and segment operating
profit of $1.81 billion was 3 percent
below year-ago results.
International Segment Summary
Third-quarter net sales for General Mills' consolidated
International businesses grew 2 percent to $1.32 billion. Lower pound volume reduced
net sales growth by 1 percentage point, while net price realization
and mix contributed 8 points of growth. Foreign currency
exchange reduced net sales growth by 5 percentage points. On
a constant-currency basis, International net sales increased 7
percent overall. Constant-currency net sales grew 17 percent
in Latin America, led by
Brazil, and rose 14 percent in
Asia-Pacific, led by China.
The Canada and Europe regions each achieved a 2 percent gain
in constant-currency net sales. (Please see Note 9 below
for reconciliation of these non-GAAP measures)
International segment operating profit grew 15 percent to
$111 million. Excluding the
impact of the Venezuela
devaluation in fiscal 2013, adjusted International segment
operating profit grew 1 percent. (Please see Note 9
below)
Through the first nine months of fiscal 2014, International
segment net sales grew 8 percent to $4.05
billion. Pound volume grew 9 percent, primarily
reflecting incremental contributions during the first quarter from
businesses added during 2013. Net price realization and mix
added 3 points of sales growth, while foreign currency exchange
reduced net sales growth by 4 points. Segment operating
profit grew 8 percent to $389
million. Excluding the impact of the Venezuela devaluation in fiscal 2013, adjusted
International segment operating profit grew 4 percent.
(Please see Note 9 below) Advertising and media
expense was 1 percent below year-ago levels.
Convenience Stores and Foodservice
Third-quarter net sales for the Convenience Stores and
Foodservice segment totaled $437
million, down 7 percent from year-ago levels. Pound
volume was 3 percent lower in the quarter, as severe weather
hampered foodservice industry performance. Net price realization
and mix subtracted 4 points of net sales growth, including lower
indexed prices on certain product lines. Segment operating
profit totaled $62 million, down 17
percent.
Through the first nine months of fiscal 2014, Convenience Stores
and Foodservice segment net sales totaled $1.41 billion, down 3 percent from the previous
year primarily due to lower pound volume. Segment operating
profit of $222 million was 7 percent
below year-ago results.
Joint Venture Summary
Combined after-tax earnings from the Cereal Partners Worldwide
(CPW) and Haagen-Dazs Japan (HDJ) joint ventures totaled
$23 million in the third quarter, up
7 percent. Constant-currency net sales grew 1 percent for CPW
and increased 13 percent for HDJ. Through the first nine
months of fiscal 2014, combined after-tax earnings from joint
ventures totaled $73 million, 6
percent below year-ago results due to unfavorable foreign currency
exchange and increased CPW consumer marketing expense.
Corporate Items
Unallocated corporate items totaled $19
million of net expense in the third quarter of fiscal 2014,
compared to $101 million of net
expense a year earlier. Excluding the effects of
mark-to-market valuation for certain commodity positions and grain
inventories in both years, unallocated corporate items totaled
$42 million of expense in this year's
third quarter compared to $76 million
of expense a year earlier. Through the first nine months of
2014, unallocated corporate items excluding mark-to-market effects
totaled $185 million of expense this
year compared to $216 million of
expense a year earlier.
Net interest expense totaled $76
million in the third quarter of fiscal 2014, down
$1 million from year-ago levels. The
effective tax rate was 33.8 percent in this year's third
quarter. Excluding items affecting comparability, the
adjusted effective tax rate was 33.6 percent for the third quarter
and 33.0 percent for the first nine months of 2014 (Please see
Note 9 below for reconciliation of this non-GAAP
measure).
Cash Flow Items
Cash provided by operating activities totaled $1.72 billion through the first nine months of
fiscal 2014. Capital investments totaled $416 million year-to-date. Dividends paid
rose to $729 million. During
the first nine months, General Mills repurchased 29 million shares
of common stock for a total of $1.40
billion. Average diluted shares outstanding totaled
650 million through the first nine months of fiscal 2014, down 2
percent from the prior-year level. Third-quarter average
diluted shares outstanding were 4 percent below the year-ago
level.
Outlook
Powell said, "We anticipate strong double-digit growth in
adjusted diluted EPS for the final quarter of fiscal 2014.
Our quarterly input cost inflation is expected to be well below
year-ago levels. We also expect the quarterly tax rate and
the average number of shares outstanding to be well the below the
prior-year."
General Mills expects fiscal 2014 adjusted diluted EPS of
between $2.87 and $2.90 per
share. Adjusted diluted EPS excludes mark-to-market valuation
effects for certain commodities and grain inventories;
restructuring and other exit costs; and the impact of changes in
Venezuelan foreign currency policy.
General Mills will hold a briefing for investors today,
March 19, 2014, beginning at
8:30 a.m. Eastern time. You may
access the web cast from General Mills' internet home page:
generalmills.com.
Adjusted diluted EPS, adjusted segment operating profit,
adjusted International segment operating profit, gross margin
excluding mark-to-market effects, International sales excluding
foreign currency translation effects, and adjusted effective tax
rate are each non-GAAP measures. Reconciliations of these
measures to their relevant GAAP measures appear in Note 9 to the
attached Consolidated Financial Statements.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are based on our current expectations and assumptions. These
forward-looking statements, including the statements under the
caption "Outlook," and statements made by Mr. Powell, are subject
to certain risks and uncertainties that could cause actual results
to differ materially from the potential results discussed in the
forward-looking statements. In particular, our predictions about
future net sales and earnings could be affected by a variety of
factors, including: competitive dynamics in the consumer foods
industry and the markets for our products, including new product
introductions, advertising activities, pricing actions, and
promotional activities of our competitors; economic conditions,
including changes in inflation rates, interest rates, tax rates, or
the availability of capital; product development and innovation;
consumer acceptance of new products and product improvements;
consumer reaction to pricing actions and changes in promotion
levels; acquisitions or dispositions of businesses or assets;
changes in capital structure; changes in laws and regulations,
including labeling and advertising regulations; impairments in the
carrying value of goodwill, other intangible assets, or other
long-lived assets, or changes in the useful lives of other
intangible assets; changes in accounting standards and the impact
of significant accounting estimates; product quality and safety
issues, including recalls and product liability; changes in
consumer demand for our products; effectiveness of advertising,
marketing, and promotional programs; changes in consumer behavior,
trends, and preferences, including weight loss trends; consumer
perception of health-related issues, including obesity;
consolidation in the retail environment; changes in purchasing and
inventory levels of significant customers; fluctuations in the cost
and availability of supply chain resources, including raw
materials, packaging, and energy; disruptions or inefficiencies in
the supply chain; volatility in the market value of derivatives
used to manage price risk for certain commodities; benefit plan
expenses due to changes in plan asset values and discount rates
used to determine plan liabilities; failure or breach of our
information technology systems; foreign economic conditions,
including currency rate fluctuations; and political unrest in
foreign markets and economic uncertainty due to terrorism or war.
The company undertakes no obligation to publicly revise any
forward-looking statement to reflect any future events or
circumstances.
Consolidated
Statements of Earnings and Supplementary Information
|
GENERAL MILLS, INC.
AND SUBSIDIARIES
|
(Unaudited) (In
Millions, Except per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Nine-Month Period
Ended
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
%
Change
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
4,377.4
|
|
$
|
4,430.6
|
|
(1.2)
|
%
|
|
$
|
13,625.8
|
|
$
|
13,363.4
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
2,864.7
|
|
|
2,907.9
|
|
(1.5)
|
%
|
|
|
8,738.4
|
|
|
8,470.1
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general, and administrative
expenses
|
|
842.1
|
|
|
874.5
|
|
(3.7)
|
%
|
|
|
2,608.4
|
|
|
2,624.1
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring,
impairment, and other
exit
costs
|
|
-
|
|
|
6.1
|
|
NM
|
|
|
|
3.5
|
|
|
18.0
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
670.6
|
|
|
642.1
|
|
4.4
|
%
|
|
|
2,275.5
|
|
|
2,251.2
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest,
net
|
|
75.5
|
|
|
76.6
|
|
(1.4)
|
%
|
|
|
223.0
|
|
|
235.1
|
|
(5.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes and after-tax
earnings from
joint ventures
|
|
595.1
|
|
|
565.5
|
|
5.2
|
%
|
|
|
2,052.5
|
|
|
2,016.1
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
200.9
|
|
|
174.2
|
|
15.3
|
%
|
|
|
679.6
|
|
|
577.7
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax earnings
from joint ventures
|
|
22.8
|
|
|
21.3
|
|
7.0
|
%
|
|
|
73.0
|
|
|
77.3
|
|
(5.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings,
including earnings attributable to
redeemable
and
noncontrolling interests
|
|
417.0
|
|
|
412.6
|
|
1.1
|
%
|
|
|
1,445.9
|
|
|
1,515.7
|
|
(4.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to redeemable
and
noncontrolling interests
|
|
6.4
|
|
|
14.2
|
|
NM
|
|
|
|
26.1
|
|
|
26.8
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to General Mills
|
$
|
410.6
|
|
$
|
398.4
|
|
3.1
|
%
|
|
$
|
1,419.8
|
|
$
|
1,488.9
|
|
(4.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
0.66
|
|
$
|
0.61
|
|
8.2
|
%
|
|
$
|
2.24
|
|
$
|
2.29
|
|
(2.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
$
|
0.64
|
|
$
|
0.60
|
|
6.7
|
%
|
|
$
|
2.18
|
|
$
|
2.24
|
|
(2.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
|
0.38
|
|
$
|
0.33
|
|
15.2
|
%
|
|
$
|
1.14
|
|
$
|
0.99
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Nine-Month Period
Ended
|
Comparisons as a % of
net sales:
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Basis Pt
Change
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Basis Pt
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
34.6%
|
|
|
34.4%
|
|
20
|
|
|
|
35.9%
|
|
|
36.6%
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general, and administrative expenses
|
|
19.2%
|
|
|
19.7%
|
|
(50)
|
|
|
|
19.1%
|
|
|
19.6%
|
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
15.3%
|
|
|
14.5%
|
|
80
|
|
|
|
16.7%
|
|
|
16.8%
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to General Mills
|
|
9.4%
|
|
|
9.0%
|
|
40
|
|
|
|
10.4%
|
|
|
11.1%
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Nine-Month Period
Ended
|
Comparisons as a % of
net sales excluding
certain items
affecting comparability (a):
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Basis Pt
Change
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Basis Pt
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
34.1%
|
|
|
34.9%
|
|
(80)
|
|
|
|
35.6%
|
|
|
36.5%
|
|
(90)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
14.8%
|
|
|
15.5%
|
|
(70)
|
|
|
|
16.4%
|
|
|
17.1%
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to General Mills
|
|
9.1%
|
|
|
9.8%
|
|
(70)
|
|
|
|
10.2%
|
|
|
10.9%
|
|
(70)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See Note 9 for a
reconciliation of this measure not defined by generally accepted
accounting principles (GAAP).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
Operating Segment
Results and Supplementary Information
|
|
GENERAL MILLS, INC.
AND SUBSIDIARIES
|
|
(Unaudited) (In
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Nine-Month Period
Ended
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
%
Change
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
%
Change
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Retail
|
$
|
2,618.5
|
|
$
|
2,664.6
|
|
(1.7)
|
%
|
|
$
|
8,168.0
|
|
$
|
8,143.5
|
|
0.3
|
%
|
International
|
|
1,322.4
|
|
|
1,296.1
|
|
2.0
|
%
|
|
|
4,046.5
|
|
|
3,762.8
|
|
7.5
|
%
|
Convenience
Stores and Foodservice
|
|
436.5
|
|
|
469.9
|
|
(7.1)
|
%
|
|
|
1,411.3
|
|
|
1,457.1
|
|
(3.1)
|
%
|
Total
|
$
|
4,377.4
|
|
$
|
4,430.6
|
|
(1.2)
|
%
|
|
$
|
13,625.8
|
|
$
|
13,363.4
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Retail
|
$
|
516.6
|
|
$
|
577.3
|
|
(10.5)
|
%
|
|
$
|
1,810.1
|
|
$
|
1,875.6
|
|
(3.5)
|
%
|
International,
excluding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Venezuela
currency devaluation
|
|
110.5
|
|
|
109.9
|
|
0.5
|
%
|
|
|
389.3
|
|
|
374.9
|
|
3.8
|
%
|
Convenience
Stores and Foodservice
|
|
62.4
|
|
|
75.4
|
|
(17.2)
|
%
|
|
|
221.4
|
|
|
239.3
|
|
(7.5)
|
%
|
Total segment
operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding
Venezuela currency devaluation
|
|
689.5
|
|
|
762.6
|
|
(9.6)
|
%
|
|
|
2,420.8
|
|
|
2,489.8
|
|
(2.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated corporate
items
|
|
18.9
|
|
|
100.6
|
|
(81.2)
|
|
|
|
141.8
|
|
|
206.8
|
|
(31.4)
|
%
|
Restructuring,
impairment, and
other exit
costs
|
|
-
|
|
|
6.1
|
|
NM
|
|
|
|
3.5
|
|
|
18.0
|
|
NM
|
|
Venezuela currency
devaluation
|
|
-
|
|
|
13.8
|
|
NM
|
|
|
|
-
|
|
|
13.8
|
|
NM
|
|
Operating
profit
|
$
|
670.6
|
|
$
|
642.1
|
|
4.4
|
%
|
|
$
|
2,275.5
|
|
$
|
2,251.2
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The reconciliation of
International segment operating profit to International segment
operating profit excluding Venezuela
|
currency devaluation
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Nine-Month Period
Ended
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
%
Change
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
%
Change
|
|
International segment
operating profit
|
$
|
110.5
|
|
$
|
96.1
|
|
15.0
|
%
|
|
$
|
389.3
|
|
$
|
361.1
|
|
7.8
|
%
|
Impact of Venezuela
currency devaluation
|
|
-
|
|
|
13.8
|
|
NM
|
%
|
|
|
-
|
|
|
13.8
|
|
NM
|
%
|
International segment
operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding
Venezuela currency devaluation
|
$
|
110.5
|
|
$
|
109.9
|
|
0.5
|
%
|
|
$
|
389.3
|
|
$
|
374.9
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Nine-Month Period
Ended
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Basis Pt
Change
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Basis Pt
Change
|
|
Segment operating
profit excluding
Venezuela
currency devaluation, % of net
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Retail
|
|
19.7%
|
|
|
21.7%
|
|
(200)
|
|
|
|
22.2%
|
|
|
23.0%
|
|
(80)
|
|
International,
excluding Venezuela
currency
devaluation
|
|
8.4%
|
|
|
8.5%
|
|
(10)
|
|
|
|
9.6%
|
|
|
10.0%
|
|
(40)
|
|
Convenience
Stores and Foodservice
|
|
14.3%
|
|
|
16.0%
|
|
(170)
|
|
|
|
15.7%
|
|
|
16.4%
|
|
(70)
|
|
Total segment
operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding
Venezuela currency devaluation
|
|
15.8%
|
|
|
17.2%
|
|
(140)
|
|
|
|
17.8%
|
|
|
18.6%
|
|
(80)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets
|
GENERAL MILLS, INC.
AND SUBSIDIARIES
|
(In Millions, Except
Par Value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
|
May 26,
2013
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
847.1
|
|
$
|
751.2
|
|
$
|
741.4
|
Receivables
|
|
|
1,648.1
|
|
|
1,591.5
|
|
|
1,446.4
|
Inventories
|
|
|
1,559.6
|
|
|
1,606.4
|
|
|
1,545.5
|
Deferred
income taxes
|
|
|
103.6
|
|
|
87.6
|
|
|
128.0
|
Prepaid
expenses and other current assets
|
|
|
399.2
|
|
|
329.1
|
|
|
437.6
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
4,557.6
|
|
|
4,365.8
|
|
|
4,298.9
|
|
|
|
|
|
|
|
|
|
|
Land, buildings, and
equipment
|
|
|
3,797.0
|
|
|
3,806.8
|
|
|
3,878.1
|
Goodwill
|
|
|
8,648.9
|
|
|
8,665.7
|
|
|
8,622.2
|
Other intangible
assets
|
|
|
5,011.7
|
|
|
5,060.4
|
|
|
5,015.1
|
Other
assets
|
|
|
909.8
|
|
|
894.7
|
|
|
843.7
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
22,925.0
|
|
$
|
22,793.4
|
|
$
|
22,658.0
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,360.3
|
|
$
|
1,186.0
|
|
$
|
1,423.2
|
Current
portion of long-term debt
|
|
|
1,203.8
|
|
|
744.0
|
|
|
1,443.3
|
Notes
payable
|
|
|
545.3
|
|
|
682.7
|
|
|
599.7
|
Other
current liabilities
|
|
|
1,574.2
|
|
|
1,669.9
|
|
|
1,827.7
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
4,683.6
|
|
|
4,282.6
|
|
|
5,293.9
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
7,179.6
|
|
|
6,631.9
|
|
|
5,926.1
|
Deferred income
taxes
|
|
|
1,474.4
|
|
|
1,202.4
|
|
|
1,389.1
|
Other
liabilities
|
|
|
1,822.0
|
|
|
2,212.9
|
|
|
1,952.9
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
15,159.6
|
|
|
14,329.8
|
|
|
14,562.0
|
|
|
|
|
|
|
|
|
|
|
Redeemable
interest
|
|
|
987.3
|
|
|
984.2
|
|
|
967.5
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock, 754.6 shares issued, $0.10 par value
|
|
|
75.5
|
|
|
75.5
|
|
|
75.5
|
Additional paid-in capital
|
|
|
1,216.0
|
|
|
1,168.6
|
|
|
1,166.6
|
Retained
earnings
|
|
|
11,636.5
|
|
|
10,795.8
|
|
|
10,702.6
|
Common
stock in treasury, at cost,
shares of 138.4, 110.3 and 113.8
|
|
|
(4,979.7)
|
|
|
(3,479.2)
|
|
|
(3,687.2)
|
Accumulated other comprehensive loss
|
|
|
(1,640.6)
|
|
|
(1,544.0)
|
|
|
(1,585.3)
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
6,307.7
|
|
|
7,016.7
|
|
|
6,672.2
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
470.4
|
|
|
462.7
|
|
|
456.3
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
6,778.1
|
|
|
7,479.4
|
|
|
7,128.5
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
22,925.0
|
|
$
|
22,793.4
|
|
$
|
22,658.0
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to consolidated financial statements.
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows
|
GENERAL MILLS, INC.
AND SUBSIDIARIES
|
(Unaudited) (In
Millions)
|
|
Nine-Month Period
Ended
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
Cash Flows -
Operating Activities
|
|
|
|
|
|
Net
earnings, including earnings attributable to redeemable
|
|
|
|
|
|
and noncontrolling interests
|
$
|
1,445.9
|
|
$
|
1,515.7
|
Adjustments to reconcile net earnings to net cash
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
442.1
|
|
|
432.3
|
After-tax earnings from joint ventures
|
|
(73.0)
|
|
|
(77.3)
|
Distributions of earnings from joint ventures
|
|
41.6
|
|
|
65.1
|
Stock-based compensation
|
|
87.4
|
|
|
82.2
|
Deferred income taxes
|
|
95.8
|
|
|
(25.0)
|
Tax
benefit on exercised options
|
|
(45.6)
|
|
|
(89.8)
|
Pension and other postretirement benefit plan
contributions
|
|
(37.3)
|
|
|
(17.6)
|
Pension and other postretirement benefit plan costs
|
|
93.0
|
|
|
97.8
|
Restructuring, impairment, and other exit costs
|
|
(13.8)
|
|
|
(47.8)
|
Changes in current assets and liabilities,
|
|
|
|
|
|
excluding the effects of acquisitions
|
|
(186.2)
|
|
|
264.5
|
Other, net
|
|
(125.7)
|
|
|
(54.4)
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
1,724.2
|
|
|
2,145.7
|
|
|
|
|
|
|
Cash Flows -
Investing Activities
|
|
|
|
|
|
Purchases of land, buildings, and equipment
|
|
(416.4)
|
|
|
(412.2)
|
Acquisitions, net of cash acquired
|
|
-
|
|
|
(900.8)
|
Investments in affiliates, net
|
|
(46.0)
|
|
|
(3.2)
|
Proceeds
from disposal of land, buildings, and equipment
|
|
5.2
|
|
|
22.3
|
Exchangeable note
|
|
29.3
|
|
|
16.2
|
Other,
net
|
|
(2.4)
|
|
|
(3.5)
|
|
|
|
|
|
|
Net cash used by investing activities
|
|
(430.3)
|
|
|
(1,281.2)
|
|
|
|
|
|
|
Cash Flows -
Financing Activities
|
|
|
|
|
|
Change
in notes payable
|
|
6.8
|
|
|
36.0
|
Issuance
of long-term debt
|
|
1,673.0
|
|
|
1,000.0
|
Payment
of long-term debt
|
|
(744.5)
|
|
|
(541.9)
|
Proceeds
from common stock issued on exercised options
|
|
42.6
|
|
|
257.6
|
Tax
benefit on exercised options
|
|
45.6
|
|
|
89.8
|
Purchases of common stock for treasury
|
|
(1,403.2)
|
|
|
(744.8)
|
Dividends paid
|
|
(729.4)
|
|
|
(651.6)
|
Addition
of noncontrolling interest
|
|
17.6
|
|
|
-
|
Distributions to noncontrolling and redeemable interest
holders
|
|
(76.5)
|
|
|
(38.3)
|
Other,
net
|
|
(2.2)
|
|
|
(6.1)
|
|
|
|
|
|
|
Net cash used by financing activities
|
|
(1,170.2)
|
|
|
(599.3)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(18.0)
|
|
|
14.8
|
Increase in cash and
cash equivalents
|
|
105.7
|
|
|
280.0
|
Cash and cash
equivalents - beginning of year
|
|
741.4
|
|
|
471.2
|
|
|
|
|
|
|
Cash and cash
equivalents - end of period
|
$
|
847.1
|
|
$
|
751.2
|
|
|
|
|
|
|
Cash Flow from
Changes in Current Assets and Liabilities,
excluding the
effects of acquisitions:
|
|
|
|
|
|
Receivables
|
$
|
(207.8)
|
|
$
|
(176.8)
|
Inventories
|
|
(30.1)
|
|
|
(19.7)
|
Prepaid
expenses and other current assets
|
|
36.6
|
|
|
49.0
|
Accounts
payable
|
|
(18.8)
|
|
|
63.7
|
Other
current liabilities
|
|
33.9
|
|
|
348.3
|
|
|
|
|
|
|
Changes in current
assets and liabilities
|
$
|
(186.2)
|
|
$
|
264.5
|
See accompanying
notes to consolidated financial statements.
|
|
|
|
|
|
GENERAL MILLS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) The accompanying Consolidated Financial Statements of
General Mills, Inc. (we, us, our, General Mills, or the Company)
have been prepared in accordance with accounting principles
generally accepted in the United
States for annual and interim financial information. In the
opinion of management, all adjustments considered necessary for a
fair presentation have been included and are of a normal recurring
nature.
In the first quarter of fiscal 2014, we changed the name of our
Bakeries and Foodservice operating segment to Convenience Stores
and Foodservice. The businesses included in this segment were
unchanged.
(2) There is currently considerable uncertainty with respect to
Venezuelan foreign currency policy. Due to this uncertainty,
beginning with the third quarter of fiscal 2014, we are excluding
the impact of balance sheet remeasurements related to our
Venezuelan subsidiary from certain non-GAAP financial measures used
in this release. We did not record any balance sheet
remeasurement impact related to Venezuela currency devaluation in the
nine-month period ended February 23,
2014. In the third quarter of fiscal 2013, we recorded a
pre-tax charge of $14 million related
to the remeasurement of our Venezuelan subsidiary balance
sheet.
(3) On August 1, 2012, we acquired
Yoki Alimentos S.A. (Yoki), a privately held food company
headquartered in Sao Bernardo do Campo, Brazil, for an aggregate purchase price of
$940 million, comprised of
$820 million of cash, net of
$31 million of cash acquired, and
$120 million of non-cash
consideration for debt assumed.
(4) Our consolidated results for the nine-month period ended
February 23, 2014 include operating
activity from the acquisitions of Yoki Alimentos S.A. in
Brazil (second quarter of fiscal
2013), Immaculate Baking Company in the
United States (third quarter of fiscal 2013), and the
assumption of the Canadian Yoplait franchise license (second
quarter of fiscal 2013). Collectively, these items are referred to
as "new businesses" in comparing our fiscal 2014 results to fiscal
2013 results within this release.
(5) During the nine-month period ended February 23, 2014, we did not undertake any new
restructuring actions. We did not record any restructuring charges
in the third quarter of fiscal 2014 and recorded $4 million of restructuring charges in the
nine-month period ended February 23,
2014 associated with our International segment related to a
productivity and cost savings plan approved in the fourth quarter
of fiscal 2012. We recorded restructuring charges of $6 million in the third quarter of fiscal 2013
and $18 million during the nine-month
period ended February 24, 2013
primarily related to this plan. These restructuring actions are
expected to be completed by the end of fiscal 2014, and we expect
to record approximately $4 million of
restructuring charges related to these actions in fiscal 2014. In
the nine-month period ended February 23,
2014, we paid $17 million in
cash related to previously announced restructuring actions.
(6) For the third quarter of fiscal 2014, unallocated corporate
expense totaled $19 million compared
to $101 million in the same period
last year. We recorded a $23 million
net decrease in expense related to the mark-to-market valuations of
certain commodity positions and grain inventories in the third
quarter of fiscal 2014, compared to a $25
million net increase in expense in the third quarter of
fiscal 2013.
For the nine-month period ended February
23, 2014, unallocated corporate expense totaled $142 million compared to $207 million in the same period last year. We
recorded a $43 million net decrease
in expense related to the mark-to-market valuations of certain
commodity positions and grain inventories in the nine-month period
ended February 23, 2014, compared to
a $9 million net decrease in expense
in the nine-month period ended February 24,
2013.
(7) Basic and diluted earnings per share (EPS) were calculated
as follows:
|
|
Quarter
Ended
|
|
Nine-Month Period
Ended
|
In Millions,
Except per Share Data
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
Net earnings
attributable to General Mills
|
|
$
|
410.6
|
|
$
|
398.4
|
|
$
|
1,419.8
|
|
$
|
1,488.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
common shares - basic EPS
|
|
|
623.5
|
|
|
648.5
|
|
|
633.3
|
|
|
649.0
|
Incremental share
effect from: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
options
|
|
|
11.9
|
|
|
10.9
|
|
|
12.3
|
|
|
11.7
|
Restricted
stock, restricted stock units, and other
|
|
|
4.8
|
|
|
5.7
|
|
|
4.6
|
|
|
5.0
|
Average number of
common shares - diluted EPS
|
|
|
640.2
|
|
|
665.1
|
|
|
650.2
|
|
|
665.7
|
Earnings per share -
basic
|
|
$
|
0.66
|
|
$
|
0.61
|
|
$
|
2.24
|
|
$
|
2.29
|
Earnings per share -
diluted
|
|
$
|
0.64
|
|
$
|
0.60
|
|
$
|
2.18
|
|
$
|
2.24
|
(a) Incremental
shares from stock options and restricted stock units are computed
by the treasury stock method.
|
(8) The effective tax rate for the nine-month period ended
February 23, 2014 was 33.1 percent
compared to 28.6 percent for the nine-month period ended
February 24, 2013. The 4.5 percentage
point increase was primarily related to the restructuring of our
General Mills Cereals, LLC (GMC)
subsidiary during the first quarter of fiscal 2013 which resulted
in a $67 million decrease to deferred
income tax liabilities related to the tax basis of the investment
in GMC and certain distributed assets, with a corresponding
discrete reduction to income taxes in the first quarter of fiscal
2013.
(9) We have included five measures in this release that are not
defined by generally accepted accounting principles (GAAP): (1)
diluted EPS excluding mark-to-market valuation of certain commodity
positions and grain inventories ("mark-to-market effects"),
restructuring costs reflecting employee severance expense
("restructuring costs"), integration costs resulting from the
acquisition of Yoki in fiscal 2013 ("acquisition integration
costs"), the impact of currency devaluation in Venezuela ("Venezuela currency devaluation"), and a
discrete tax item related to GMC ("tax item") (collectively, these
5 items are referred to as "certain items affecting comparability"
in this footnote), (2) earnings comparisons as a percent of net
sales excluding certain items affecting comparability, (3) total
segment operating profit excluding Venezuela currency devaluation, (4) net sales
growth rates for our International segment in total and by region
excluding the impact of changes in foreign currency exchange, and
(5) effective income tax rates excluding certain items affecting
comparability. We believe that these measures provide useful
supplemental information to assess our operating performance. These
measures are reconciled below to the measures as reported in
accordance with GAAP, and should be viewed in addition to, and not
in lieu of, our diluted EPS and operating performance measures as
calculated in accordance with GAAP.
Diluted EPS excluding certain items affecting comparability
follows:
|
|
Quarter
Ended
|
|
Nine-Month
Period
Ended
|
|
Per Share
Data
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
Diluted earnings per
share, as reported
|
$
|
0.64
|
|
$
|
0.60
|
|
$
|
2.18
|
|
$
|
2.24
|
|
Mark-to-market
effects (a)
|
|
(0.02)
|
|
|
0.02
|
|
|
(0.04)
|
|
|
(0.01)
|
|
Restructuring
costs (b)
|
|
-
|
|
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
Tax item
(c)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.10)
|
|
Acquisition
integration costs
|
|
-
|
|
|
0.01
|
|
|
-
|
|
|
0.01
|
|
Venezuela
currency devaluation (d)
|
|
-
|
|
|
0.02
|
|
|
-
|
|
|
0.02
|
|
Diluted earnings per
share, excluding
certain
items affecting
comparability
|
$
|
0.62
|
|
$
|
0.66
|
|
$
|
2.15
|
|
$
|
2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See Note
6.
|
|
|
|
|
|
|
|
|
|
|
(b) See Note
5.
|
|
|
|
|
|
|
|
|
|
|
(c) See Note
8.
|
|
|
|
|
|
|
|
|
|
|
(d) We did not record
any impact from Venezuela currency devaluation in the nine-month
period ended February 23, 2014.
|
Earnings comparisons as a percent of net sales excluding certain
items affecting comparability follows:
|
|
Quarter
Ended
|
|
In
Millions
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
|
Comparisons as a %
of Net Sales
|
|
Value
|
|
Percent
of
Net
Sales
|
|
|
|
Value
|
|
Percent
of
Net
Sales
|
|
|
Gross margin as
reported (a)
|
$
|
1,512.7
|
|
34.6
|
%
|
|
$
|
1,522.7
|
|
34.4
|
%
|
|
Mark-to-market
effects (b)
|
|
(22.8)
|
|
(0.5)
|
%
|
|
|
25.1
|
|
0.6
|
%
|
|
Adjusted gross
margin
|
$
|
1,489.9
|
|
34.1
|
%
|
|
$
|
1,547.8
|
|
34.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit as
reported
|
$
|
670.6
|
|
15.3
|
%
|
|
$
|
642.1
|
|
14.5
|
%
|
|
Mark-to-market
effects (b)
|
|
(22.8)
|
|
(0.5)
|
%
|
|
|
25.1
|
|
0.5
|
%
|
|
Restructuring
costs (c)
|
|
-
|
|
-
|
%
|
|
|
5.0
|
|
0.1
|
%
|
|
Acquisition
integration costs
|
|
-
|
|
-
|
%
|
|
|
2.8
|
|
0.1
|
%
|
|
Venezuela
currency devaluation (e)
|
|
-
|
|
-
|
%
|
|
|
13.8
|
|
0.3
|
%
|
|
Adjusted operating
profit
|
$
|
647.8
|
|
14.8
|
%
|
|
$
|
688.8
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to General Mills as reported
|
$
|
410.6
|
|
9.4
|
%
|
|
$
|
398.4
|
|
9.0
|
%
|
|
Mark-to-market
effects, net of tax (b)
|
|
(14.4)
|
|
(0.3)
|
%
|
|
|
15.8
|
|
0.4
|
%
|
|
Restructuring
costs, net of tax (c)
|
|
-
|
|
-
|
%
|
|
|
4.7
|
|
0.1
|
%
|
|
Tax item
(d)
|
|
-
|
|
-
|
%
|
|
|
2.0
|
|
-
|
%
|
|
Venezuela
currency devaluation (e)
|
|
-
|
|
-
|
%
|
|
|
11.6
|
|
0.3
|
%
|
|
Adjusted net earnings
attributable to General Mills
|
$
|
396.2
|
|
9.1
|
%
|
|
$
|
432.5
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-Month Period
Ended
|
|
In
Millions
|
|
Feb. 23,
2014
|
|
|
Feb. 24,
2013
|
|
|
Comparisons as a %
of Net Sales
|
|
Value
|
|
Percent
of
Net
Sales
|
|
|
|
Value
|
|
Percent
of
Net
Sales
|
|
|
Gross margin as
reported (a)
|
$
|
4,887.4
|
|
35.9
|
%
|
|
$
|
4,893.3
|
|
36.6
|
%
|
|
Mark-to-market
effects (b)
|
|
(43.0)
|
|
(0.3)
|
%
|
|
|
(8.6)
|
|
(0.1)
|
%
|
|
Adjusted gross
margin
|
$
|
4,844.4
|
|
35.6
|
%
|
|
$
|
4,884.7
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit as
reported
|
$
|
2,275.5
|
|
16.7
|
%
|
|
$
|
2,251.2
|
|
16.8
|
%
|
|
Mark-to-market
effects (b)
|
|
(43.0)
|
|
(0.3)
|
%
|
|
|
(8.6)
|
|
(0.1)
|
%
|
|
Restructuring
costs (c)
|
|
3.5
|
|
-
|
%
|
|
|
16.7
|
|
0.1
|
%
|
|
Acquisition
integration costs
|
|
-
|
|
-
|
%
|
|
|
8.1
|
|
0.1
|
%
|
|
Venezuela
currency devaluation (e)
|
|
-
|
|
-
|
%
|
|
|
13.8
|
|
0.1
|
%
|
|
Adjusted operating
profit
|
$
|
2,236.0
|
|
16.4
|
%
|
|
$
|
2,281.2
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to General Mills as reported
|
$
|
1,419.8
|
|
10.4
|
%
|
|
$
|
1,488.9
|
|
11.1
|
%
|
|
Mark-to-market
effects, net of tax (b)
|
|
(27.1)
|
|
(0.2)
|
%
|
|
|
(5.4)
|
|
-
|
%
|
|
Restructuring
costs, net of tax (c)
|
|
3.1
|
|
-
|
%
|
|
|
14.4
|
|
0.1
|
%
|
|
Acquisition
integration costs, net of tax
|
|
-
|
|
-
|
%
|
|
|
5.9
|
|
-
|
%
|
|
Tax item
(d)
|
|
-
|
|
-
|
%
|
|
|
(66.7)
|
|
(0.5)
|
%
|
|
Venezuela
currency devaluation (e)
|
|
-
|
|
-
|
%
|
|
|
11.6
|
|
0.1
|
%
|
|
Adjusted net earnings
attributable to General Mills
|
$
|
1,395.8
|
|
10.2
|
%
|
|
$
|
1,448.7
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Net sales less
cost of sales.
|
|
|
|
|
|
|
|
|
|
|
(b) See Note
6.
|
|
|
|
|
|
|
|
|
|
|
(c) See Note
5.
|
|
|
|
|
|
|
|
|
|
|
(d) See Note
8.
|
|
|
|
|
|
|
|
|
|
|
(e) We did not record
any impact from Venezuela currency devaluation in the nine-month
period ended February 23, 2014.
|
A reconciliation of total segment operating profit excluding
Venezuela currency devaluation, to
the relevant GAAP measure, operating profit, is included in the
Statements of Operating Segment Results.
The reconciliation of International segment and region net sales
growth rates as reported to growth rates excluding the impact of
foreign currency exchange below demonstrates the effect of foreign
currency exchange rate fluctuations from year to year. To present
this information, current period results for entities reporting in
currencies other than United
States dollars are translated into United States dollars at the average exchange
rates in effect during the corresponding period of the prior fiscal
year, rather than the actual average exchange rates in effect
during the current fiscal year. Therefore, the foreign currency
impact is equal to current year results in local currencies
multiplied by the change in the average foreign currency exchange
rate between the current fiscal period and the corresponding period
of the prior fiscal year.
|
|
|
Quarter Ended Feb.
23, 2014
|
|
|
|
Percentage
Change
in Net Sales as
Reported
|
Impact of
Foreign
Currency
Exchange
|
Percentage Change
in
Net Sales on Constant
Currency Basis
|
|
Europe
|
|
3
|
%
|
1
|
pt
|
2
|
%
|
|
Canada
|
|
(6)
|
|
(8)
|
|
2
|
|
|
Asia/Pacific
|
|
14
|
|
-
|
|
14
|
|
|
Latin
America
|
|
(1)
|
|
(18)
|
|
17
|
|
|
Total
International
|
|
2
|
%
|
(5)
|
pts
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-Month Period
Ended Feb. 23, 2014
|
|
|
|
Percentage Change
in
Net Sales as Reported
(a)
|
Impact of
Foreign
Currency
Exchange
|
Percentage Change
in
Net Sales on Constant
Currency Basis
|
|
Europe
|
|
1
|
%
|
2
|
pts
|
(1)
|
%
|
|
Canada
|
|
2
|
|
(6)
|
|
8
|
|
|
Asia/Pacific
|
|
11
|
|
1
|
|
10
|
|
|
Latin
America
|
|
30
|
|
(20)
|
|
50
|
|
|
Total
International
|
|
8
|
%
|
(3)
|
pts
|
11
|
%
|
A reconciliation of the effective income tax rate as reported to
the effective income tax rate excluding certain items affecting
comparability follows:
|
|
Quarter Ended
|
|
Nine-Month Period
Ended
|
|
|
Feb. 23,
2014
|
|
Feb. 24,
2013
|
|
Feb. 23,
2014
|
|
Feb. 24,
2013
|
|
In
Millions
|
Pretax
Earnings
(a)
|
Income
Taxes
|
|
Pretax
Earnings
(a)
|
Income
Taxes
|
|
Pretax
Earnings
(a)
|
Income
Taxes
|
|
Pretax
Earnings
(a)
|
Income
Taxes
|
|
As
reported
|
$
595.1
|
$
200.9
|
|
$ 565.5
|
$ 174.2
|
|
$
2,052.5
|
$
679.6
|
|
$ 2,016.1
|
$ 577.7
|
|
Mark-to-market effects (b)
|
(22.8)
|
(8.4)
|
|
25.1
|
9.3
|
|
(43.0)
|
(15.9)
|
|
(8.6)
|
(3.2)
|
|
Restructuring costs (c)
|
-
|
-
|
|
5.0
|
0.3
|
|
3.5
|
0.4
|
|
16.7
|
2.3
|
|
Acquisition integration costs
|
-
|
-
|
|
2.8
|
0.8
|
|
-
|
-
|
|
8.1
|
2.2
|
|
Tax item
(d)
|
-
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
66.7
|
|
Venezuela currency devaluation (e)
|
-
|
-
|
|
13.8
|
2.2
|
|
-
|
-
|
|
13.8
|
2.2
|
|
As
adjusted
|
$
572.3
|
$
192.5
|
|
$ 612.2
|
$ 186.8
|
|
$
2,013.0
|
$
664.1
|
|
$ 2,046.1
|
$ 647.9
|
|
Effective tax
rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
33.8%
|
|
|
30.8%
|
|
|
33.1%
|
|
|
28.6%
|
|
As
adjusted
|
|
33.6%
|
|
|
30.5%
|
|
|
33.0%
|
|
|
31.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Earnings before
income taxes and after-tax earnings from joint ventures.
|
|
(b) See Note
6.
|
|
|
|
|
|
|
|
|
|
|
|
(c) See Note
5.
|
|
|
|
|
|
|
|
|
|
|
|
(d) See Note
8.
|
|
|
|
|
|
|
|
|
|
|
|
(e) We did not record
any impact from Venezuela currency devaluation in the nine-month
period ended February 23, 2014.
|
Logo -
http://photos.prnewswire.com/prnh/20130218/MM61906LOGO
SOURCE General Mills