Second, we maintained our strong adjusted operating profit margins. During fiscal 2020, we received $263 million of net proceeds from common stock issued on exercised options compared to $241 million in fiscal 2019. Find our current and archived annual reports. Our devotion to community and planet drives the way we give back and do business. independent of other asset groups. We offer certain suppliers access to third party services that allow them to view our scheduled payments online. The new standard requires the service cost component of net periodic benefit expense to be recorded in the same line items as other employee compensation costs within our Consolidated Statements of Earnings. By Newsy Staff. The Yoplait trademark and other related trademarks are owned by Yoplait Marques SNC, an entity in which we own a 50 percent interest. For the fiscal year ended May 31, 2020, the amount of gain reclassified from AOCI into cost of sales was $5.1 million and the amount of loss reclassified from AOCI into SG&A was $0.5 million. Actuarial gains and losses associated with the Plan I and the Supplemental Plans I are amortized over the average remaining life of the participants. Prior to joining General Mills, he practiced law with the Shearman and Sterling and Mackall, Crounse and Moore law firms. During the second quarter of fiscal 2020, we entered into a $500.0 million notional amount interest rate swap to convert a portion of our $850.0 million floating-rate notes due April 16, 2021, to a fixed rate. Certain equity-based compensation plans contain provisions that accelerate vesting of awards upon retirement, termination, or death of eligible employees and directors. CPW restructuring charges related to initiatives designed to improve profitability and growth that were approved in fiscal 2018 and 2019. Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain. Lowering the expected long-term rate of return on assets by 100 basis points would increase our net pension and postretirement expense by $79 million for fiscal 2021. Mr. O'Grady joined General Mills in 1990 and held several marketing roles in the Snacks, Meals, and Big G cereal divisions. Valuation gains on certain corporate investments. The impact of elevated at-home demand was less pronounced in the Europe & Australia segment, reflecting its lower proportion of net sales in those categories. The number of shares of our common stock allocated to participants in the ESOP was 4.6 million as of May 31, 2020, and 5.1 million as of May 26, 2019. Our finite-lived intangible assets, primarily acquired franchise agreements and customer relationships, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We have certain lease arrangements with variable rental payments. Stock-based awards now outstanding include some granted under the 2009 and 2011 stock plans and the 2006 and 2011 compensation plans for non-employee directors, under which no further awards may be granted. The new accounting requirements allowed for adjustments to reclassification amounts in subsequent periods as a result of changes to the provisional amounts recorded. ITEM 5 - Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. As of May 31, 2020, our total debt, including the impact of derivative instruments designated as hedges, was 87 percent in fixed-rate and 13 percent in floating-rate instruments, compared to 74 percent in fixed-rate and 26 percent in floating-rate instruments on May 26, 2019. Actual fiscal 2021 contributions could exceed our current projections, as influenced by our decision to undertake discretionary funding of our benefit trusts and future changes in regulatory requirements. Investor contact. Our failure to meet the demand for our products could adversely affect our business and results of operations. In the United States, our activities are subject to regulation by various federal government agencies, including the Food and Drug Administration, Department of Agriculture, Federal Trade Commission, Department of Commerce, and Environmental Protection Agency, as well as various state and local agencies. The estimated fair values of stock options granted and the assumptions used for the Black-Scholesoption-pricing model were as follows: Estimated fair values of stock options granted. Competition in our product categories is based on product innovation, product quality, price, brand recognition and loyalty, effectiveness of marketing, promotional activity, convenient ordering and delivery to the consumer, and the ability to identify and satisfy consumer preferences. Other. Please see Note 15 to the Consolidated Financial Statements in Item 8 of this report. She was named Vice President, Human Resources, International in 2010, and then promoted to Senior Vice President, Human Resources Operations in 2013. If we do not succeed in developing innovative products for new and existing categories, our growth and profitability could be adversely affected. Income statements, balance sheets, cash flow statements and key ratios. Deteriorating economic and political conditions in our major markets affected by the COVID-19 pandemic, such as increased unemployment, decreases in disposable income, declines in consumer confidence, or economic slowdowns or recessions, could cause a decrease in demand for our products. Stock-based compensation expense related to restricted stock units and performance share units was $81.5 million for fiscal 2020, $70.2 million for fiscal 2019, and $62.4 million for fiscal 2018. Do your cereals (Big G and/or Cascadian Farm) contain any animal sourced ingredients? The new accounting requirements replace the incurred loss impairment model with a forward-looking expected credit loss model, which will generally result in earlier recognition of credit losses. Goodwill is not subject to amortization and is tested for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. In fiscal 2020, we recorded a $25 million net. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. At completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. increase in expense related to mark-to-market valuation of certain commodity positions and grain inventories compared to a $36 million net increase in expense in the prior year. Click here to find out more & inquire today. Fair value is measured using a discounted cash flow model or other similar valuation model, as appropriate. Learn More >> The following table summarizes our future estimated cash payments under existing contractual obligations, including payments due by period: For a complete description of our significant accounting policies, please see Note 2 to the Consolidated Financial Statements in Item 8 of this report. General Mills is a leading global food company that serves the world by making food people love. (a) Measured in tons based on the stated weight of our product shipments. In 1928, General Mills acquired the Wichita Mill and Elevator Company of the industrialist Frank Kell of Wichita Falls, Texas. The statements have been prepared in accordance with accounting principles that are generally accepted in the United States, using management's best estimates and judgments where appropriate. We will continue to monitor our businesses for potential impairment. Headquartered in Minneapolis, Minnesota, USA, General Mills had fiscal 2019 worldwide sales of US $17.9 billion including the company's US $1 billion proportionate of joint-venture net sales. On a weighted-average basis, the expected rate of return for all defined benefit plans was 6.95 percent for fiscal 2020, 7.25 percent for fiscal 2019, and 7.88 percent for fiscal 2018. General Mills, Inc., is an American multinational manufacturer and marketer of branded consumer foods sold through retail stores. Our Europe & Australia operating segment reflects retail and foodservice businesses in the greater Europe and Australia regions. Intangible assets subject to amortization: Franchise agreements, customer relationships, Intangible assets subject to amortization. Yes Í No '. These euro- and Canadian dollar-denominated interests are reported in U.S. dollars on our Consolidated Balance Sheets. snacks, including grain, fruit and savory snacks, nutrition bars, and frozen hot snacks; convenient meals, including meal kits, ethnic meals, pizza, soup, side dish mixes, frozen breakfast, and frozen entrees; We have experienced, and may continue to experience, a decrease in sales of certain of our products in markets around the world that have been affected by the, Deteriorating economic and political conditions in our major markets affected by the, We have experienced minor temporary workforce disruptions in our supply chain as a result of the. Yes ' No Í. Our future results will also depend on our ability to increase market share in our existing product categories. Research and development expenditures were $224 million in fiscal 2020 and $222 million in fiscal 2019. The adoption of this guidance did not impact our results of operations or financial position. Our initial health care cost trend rate is adjusted as necessary to remain consistent with this review, recent experiences, and short-term expectations. As of May 31, 2020, we had $20 billion of goodwill and indefinite-lived intangible assets. Jon J. Nudi, age 50, is Group President, North America Retail. If our products become adulterated, misbranded, or mislabeled, we might need to recall those items and may experience product liability claims if consumers or their pets are injured. Our Asia & Latin America segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. She held human resources leadership roles in Supply Chain, Finance, Marketing, and Organization Effectiveness, and she also worked a large part of her career on businesses outside of the United States. Sean Walker, age 54, is Group President, Asia & Latin America. Segment operating profit decreased 74 percent to $19 million in fiscal 2020, compared to $72 million in fiscal 2019, primarily driven by an increase in input costs and lower contributions from volume growth. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. The impacts disclosed are approximate and reflect our best estimate of the impact of the COVID-19 pandemic. Management has established a system of internal controls that provides reasonable assurance that assets are adequately safeguarded and transactions are recorded accurately in all material respects, in accordance with management's authorization. The market-related valuation recognizes certain investment gains or losses over a five-year period from the year in which they occur. Net cash proceeds from the exercise of stock options less shares used for minimum withholding taxes and the intrinsic value of options exercised were as follows: Restricted Stock, Restricted Stock Units, and Performance Share Units, Stock and units settled in stock subject to a restricted period and a purchase price, if any (as determined by the Compensation Committee of the Board of Directors), may be granted to key employees under the 2017 Plan. REDEEMABLE AND NONCONTROLLING INTERESTS. General Mills: Publications, including annual report and global responsibility report Topics general mills, corporate, annual report, 10-k, financial, fiscal, business, history, pdf Collection opensource Language English. Get the detailed quarterly/annual income statement for General Mills, Inc. (GIS). Our accrued trade and coupon promotion liabilities were $471 million as of May 31, 2020, and $410 million as of May 26, 2019. The risk-free interest rate for periods during the expected term of the options is based on the U.S. Treasury zero-coupon yield curve in effect at the time of grant. Purchases under the authorization can be made in the open market or in privately negotiated transactions, including the use of call options and other derivative instruments, Rule 10b5-1 trading plans, and accelerated repurchase programs. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Cash paid for amounts included in the measurement of lease, Right of use assets obtained in exchange for new lease, NOTE 8. Our research and development resources are focused on new product development, product improvement, process design and improvement, packaging, and exploratory research in new business and technology areas. When an item is sold or retired, the accounts are relieved of its cost and related accumulated depreciation and the resulting gains and losses, if any, are recognized in earnings. Ms. McNabb joined General Mills in 1999 and held a variety of marketing roles in Cereal, Snacks, Meals, and New Products before becoming Vice President, Marketing for CPW in 2011 and Vice President, Marketing for the Circle of Champions Business Unit in October 2015. We do not expect to be required to make contributions to our defined benefit pension, other postretirement benefit, and postemployment benefit plans in fiscal 2021. We strive to grow core working capital at or below the rate of growth in our net sales. Fiscal 2020 organic net sales includes growth from the impact of the COVID-19 pandemic. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits, and vegetables and other high-quality natural ingredients. Internal Control - Integrated Framework (2013). Benefit plan non-serviceincome totaled $113 million in fiscal 2020 compared to $88 million in fiscal 2019, primarily reflecting lower interest costs (please see Note 2 to the Consolidated Financial Statements in Item 8 of this report for additional information). The Audit Committee reviewed and approved the Company's annual financial statements. The decrease in organic net sales growth includes unfavorable organic net price realization and mix and a decrease in contributions from organic volume growth. As part of the accounting for the TCJA, we recorded local country withholding taxes related to certain entities from which we began repatriating undistributed earnings and will continue to record local country withholding taxes on all future earnings. We performed sensitivity analyses over the revenue growth rates, operating margins, brand royalty rates and discount rates to assess the impact of other points within a range of potential assumptions. OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS. Trade promotions are recorded using significant judgment of estimated participation and performance levels for offered programs at the time of sale. All salaried employees hired on or after June 1, 2013, are eligible for a retirement program that does not include a defined benefit pension plan. The credit facilities contain covenants, including a requirement to maintain a fixed charge coverage ratio of at least 2.5 times. Information related to our cash flow hedges, fair value hedges, and other derivatives not designated as hedging instruments for the fiscal years ended May 31, 2020, and May 26, 2019, follows: The following tables reconcile the net fair values of assets and liabilities subject to offsetting arrangements that are recorded in our Consolidated Balance Sheets to the net fair values that could be reported in our Consolidated Balance Sheets: Collateral Amount Recognized Balance Liabilities, AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS. On the acquisition date, we recorded the $904.4 million fair value of Sodiaal's 49 percent euro-denominated interest in Yoplait SAS as a redeemable interest on our Consolidated Balance Sheets. Environmental costs relating to existing conditions caused by past operations that do not contribute to current or future revenues are expensed. This included controls related to the assumptions about future operating results and the discount and royalty rates used to measure the reporting unit and brand and other intangible fair values. Our allowance for doubtful accounts represents our estimate of probable non-payments and credit losses in our existing receivables, as determined based on a review of past due balances and other specific account data. We sponsor another money purchase plan for certain domestic hourly employees with net assets of $20.6 million as of May 31, 2020, and $22.3 million as of May 26, 2019. We also recorded $2 million of restructuring initiative project-related costs in cost of sales in fiscal 2020. compared to $1 million in fiscal 2019 (please see Note 4 to the Consolidated Financial Statements in Item 8 of this report for additional information). The 8 percent increase in North America Retail net sales for fiscal 2020 was primarily driven by the impact of the COVID-19 pandemic. The remaining expense to be incurred is approximately $8 million of other exit costs. The VAR calculation used historical interest and foreign exchange rates, and commodity and equity prices from the past year to estimate the potential volatility and correlation of these rates in the future. Fiscal 2019 represented acquisition integration costs, while fiscal 2018 represented acquisition transaction and integration costs and interest, net related to the debt issued to finance the transaction. North America Retail net sales were as follows: Note: Table may not foot due to rounding. We also generally swap our foreign-denominated commercial paper borrowings and nonfunctional currency intercompany loans back to U.S. dollars or the functional currency of the entity with foreign exchange exposure. We view our restructuring activities as actions that help us meet our long-term growth targets. 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