DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Feb. 25, 2018 | Mar. 12, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Feb. 25, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --05-27 | |
Entity Central Index Key | 40,704 | |
Trading Symbol | GIS | |
Entity Registrant Name | GENERAL MILLS INC, | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding | 570,162,724 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
CONSOLIDATED STATEMENTS OF EARNINGS [ABSTRACT] | ||||
Net sales | $ 3,882.3 | $ 3,793.2 | $ 11,850.2 | $ 11,813.2 |
Cost of sales | 2,627 | 2,485.5 | 7,841.8 | 7,569.1 |
Selling, general, and administrative expenses | 655.1 | 687.6 | 2,045.8 | 2,107.9 |
Divestiture loss | 0 | 0 | 0 | 13.5 |
Restructuring, impairment, and other exit costs | 7.5 | 77.6 | 14.3 | 165.5 |
Operating profit | 592.7 | 542.5 | 1,948.3 | 1,957.2 |
Interest, net | 89.3 | 76.4 | 236.6 | 225.8 |
Earnings before income taxes and after-tax earnings from joint ventures | 503.4 | 466.1 | 1,711.7 | 1,731.4 |
Income taxes | (432.5) | 107 | (29.1) | 511 |
After-tax earnings from joint ventures | 16.6 | 11.1 | 64.1 | 65.1 |
Net earnings, including earnings attributable to redeemable and noncontrolling interests | 952.5 | 370.2 | 1,804.9 | 1,285.5 |
Net earnings attributable to redeemable and noncontrolling interests | 11.1 | 12.4 | 28.3 | 36.9 |
Net earnings attributable to General Mills | $ 941.4 | $ 357.8 | $ 1,776.6 | $ 1,248.6 |
Earnings per share - basic | $ 1.64 | $ 0.62 | $ 3.1 | $ 2.12 |
Earnings per share - diluted | 1.62 | 0.61 | 3.05 | 2.08 |
Dividends per share | $ 0.49 | $ 0.48 | $ 1.47 | $ 1.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [ABSTRACT] | ||||
Net earnings, including earnings attributable to redeemable and noncontrolling interests | $ 952.5 | $ 370.2 | $ 1,804.9 | $ 1,285.5 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | 23.5 | 113.7 | 43 | 88.4 |
Other fair value changes: | ||||
Securities | 0.6 | 0.5 | 1.4 | 0.8 |
Hedge derivatives | (6.7) | (4.9) | (15.6) | 42.4 |
Reclassification to earnings: | ||||
Hedge derivatives | 2.8 | (8.7) | 3.4 | (19.3) |
Amortization of losses and prior service costs | 30.7 | 29.9 | 86.4 | 92.3 |
Other comprehensive income (loss), net of tax | 50.9 | 130.5 | 118.6 | 204.6 |
Total comprehensive income | 1,003.4 | 500.7 | 1,923.5 | 1,490.1 |
Comprehensive income (loss) attributable to redeemable and noncontrolling interests | 40.7 | 16.4 | 125.5 | (20.3) |
Comprehensive income attributable to General Mills | $ 962.7 | $ 484.3 | $ 1,798 | $ 1,510.4 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Feb. 25, 2018 | May 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 953.1 | $ 766.1 |
Receivables | 1,496.5 | 1,430.1 |
Inventories | 1,452.5 | 1,483.6 |
Prepaid expenses and other current assets | 375 | 381.6 |
Total current assets | 4,277.1 | 4,061.4 |
Land, buildings, and equipment | 3,626.2 | 3,687.7 |
Goodwill | 8,867.3 | 8,747.2 |
Other intangible assets | 4,604.1 | 4,530.4 |
Other assets | 865.9 | 785.9 |
Total assets | 22,240.6 | 21,812.6 |
Current liabilities: | ||
Accounts payable | 2,505.7 | 2,119.8 |
Current portion of long-term debt | 1,250.5 | 604.7 |
Notes payable | 1,210.8 | 1,234.1 |
Other current liabilities | 1,242.6 | 1,372.2 |
Total current liabilities | 6,209.6 | 5,330.8 |
Long-term debt | 7,163.6 | 7,642.9 |
Deferred income taxes | 1,233.9 | 1,719.4 |
Other liabilities | 1,481.3 | 1,523.1 |
Total liabilities | 16,088.4 | 16,216.2 |
Redeemable interest | 817.5 | 910.9 |
Stockholders' equity: | ||
Common stock, 754.6 shares issued, $0.10 par value | 75.5 | 75.5 |
Additional paid-in capital | 1,235 | 1,120.9 |
Retained earnings | 14,398.4 | 13,138.9 |
Common stock in treasury, at cost | (8,190.8) | (7,762.9) |
Accumulated other comprehensive loss | (2,552.5) | (2,244.5) |
Total stockholders' equity | 4,965.6 | 4,327.9 |
Noncontrolling interests | 369.1 | 357.6 |
Total equity | 5,334.7 | 4,685.5 |
Total liabilities and equity | $ 22,240.6 | $ 21,812.6 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Paranthetical) - $ / shares shares in Millions | Feb. 25, 2018 | May 28, 2017 | May 29, 2016 |
Stockholders' equity: | |||
Common stock, shares issued | 754.6 | 754.6 | |
Common stock, par value | $ 0.1 | $ 0.1 | $ 0.1 |
Common stock in treasury, shares | 184.5 | 177.7 |
CONSOLIDATED STATEMENTS OF TOTA
CONSOLIDATED STATEMENTS OF TOTAL EQUITY AND REDEEMABLE INTEREST (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Issued Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] | Redeemable Interest [Member] |
Beginning balance, equity at May. 29, 2016 | $ 5,307.1 | $ 75.5 | $ 1,177 | $ (6,326.6) | $ 12,616.5 | $ (2,612.2) | $ 376.9 | |
Beginning balance, equity attributable to redeemable noncontrolling interest at May. 29, 2016 | $ 845.6 | |||||||
Beginning balance, common stock shares at May. 29, 2016 | 754.6 | |||||||
Beginning balance, treasury stock shares at May. 29, 2016 | (157.8) | |||||||
Total comprehensive income (loss) | 2,039 | 1,657.5 | 367.7 | 13.8 | ||||
Total comprehensive income (loss) attributable to redeemable interests | 17.2 | |||||||
Cash dividends declared | (1,135.1) | (1,135.1) | ||||||
Shares purchased, value | (1,651.5) | $ (1,651.5) | ||||||
Shares purchased, shares | (25.4) | |||||||
Stock compensation plans (includes income tax benefits), value | 218.8 | 3.6 | $ 215.2 | |||||
Stock compensation plans (includes income tax benefits), shares | 5.5 | |||||||
Unearned compensation related to restricted stock unit awards | (78.5) | (78.5) | ||||||
Earned compensation | 94.9 | 94.9 | ||||||
(Increase) decrease in redemption value of redeemable interest | (75.9) | (75.9) | 75.9 | |||||
Acquisition of interest in subsidiary | (0.1) | (0.2) | 0.1 | |||||
Distributions to noncontrolling and redeemable interest holders | (33.2) | (33.2) | (27.8) | |||||
Ending balance, equity at May. 28, 2017 | 4,685.5 | $ 75.5 | 1,120.9 | $ (7,762.9) | 13,138.9 | (2,244.5) | 357.6 | |
Ending balance, equity attributable to redeemable noncontrolling interest at May. 28, 2017 | $ 910.9 | 910.9 | ||||||
Ending balance, common stock shares at May. 28, 2017 | 754.6 | 754.6 | ||||||
Ending balance, treasury stock shares at May. 28, 2017 | (177.7) | (177.7) | ||||||
Total comprehensive income (loss) | $ 1,839.2 | 1,776.6 | 21.4 | 41.2 | ||||
Total comprehensive income (loss) attributable to redeemable interests | 84.3 | |||||||
Cash dividends declared | (846.5) | (846.5) | ||||||
Shares purchased, value | $ (601.2) | $ (601.2) | ||||||
Shares purchased, shares | (10.9) | (10.9) | ||||||
Stock compensation plans (includes income tax benefits), value | $ 124.2 | (49.1) | $ 173.3 | |||||
Stock compensation plans (includes income tax benefits), shares | 4.1 | |||||||
Unearned compensation related to restricted stock unit awards | (58.2) | (58.2) | ||||||
Earned compensation | 62.3 | 62.3 | ||||||
(Increase) decrease in redemption value of redeemable interest | 159.1 | 159.1 | (159.1) | |||||
Distributions to noncontrolling and redeemable interest holders | (29.7) | (29.7) | (18.6) | |||||
Reclassification of certain income tax effects | 0 | 329.4 | (329.4) | |||||
Ending balance, equity at Feb. 25, 2018 | 5,334.7 | $ 75.5 | $ 1,235 | $ (8,190.8) | $ 14,398.4 | $ (2,552.5) | $ 369.1 | |
Ending balance, equity attributable to redeemable noncontrolling interest at Feb. 25, 2018 | $ 817.5 | $ 817.5 | ||||||
Ending balance, common stock shares at Feb. 25, 2018 | 754.6 | 754.6 | ||||||
Ending balance, treasury stock shares at Feb. 25, 2018 | (184.5) | (184.5) |
CONSOLIDATED STATEMENTS OF TOT7
CONSOLIDATED STATEMENTS OF TOTAL EQUITY AND REDEEMABLE INTEREST (Unaudited) (Paranthetical) $ in Millions, shares in Billions | USD ($)$ / sharesshares |
CONSOLIDATED STATEMENTS OF TOTAL EQUITY AND REDEEMABLE INTEREST (Unaudited) (Parenthetical) [ABSTRACT] | |
Par Value Common Stock | $ 0.1 |
Common Stock, Shares Authorized | shares | 1 |
Cash dividends declared per share | $ 1.92 |
Stock compensation plans, income tax benefits | $ | $ 64.1 |
Par Value Common Stock | $ 0.1 |
Common Stock, Shares Authorized | shares | 1 |
Cash dividends declared per share | $ 1.47 |
Stock compensation plans, income tax benefits | $ | $ 26.8 |
Par Value Common Stock | $ 0.1 |
Common Stock, Shares Authorized | shares | 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2018 | Feb. 26, 2017 | |
Cash Flows - Operating Activities | ||
Net earnings, including earnings attributable to redeemable and noncontrolling interests | $ 1,804.9 | $ 1,285.5 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 434.7 | 448.3 |
After-tax earnings from joint ventures | (64.1) | (65.1) |
Distributions of earnings from joint ventures | 60.6 | 43.7 |
Stock-based compensation | 62.8 | 76.4 |
Deferred income taxes | (489.1) | 140.1 |
Pension and other postretirement benefit plan contributions | (20.3) | (34) |
Pension and other postretirement benefit plan costs | 3.5 | 26.9 |
Divestiture loss | 0 | 13.5 |
Restructuring, impairment, and other exit costs | (12.3) | 141.1 |
Changes in current assets and liabilities | 394.9 | (368.8) |
Other, net | (40.3) | (48.6) |
Net cash provided by operating activities | 2,135.3 | 1,659 |
Cash Flows - Investing Activities | ||
Purchases of land, buildings, and equipment | (397.9) | (475.2) |
Investments In affiliates, net | (15.2) | 4.8 |
Proceeds from disposal of land, buildings, and equipment | 0.9 | 1.2 |
Proceeds from divestiture | 0 | 17.5 |
Exchangeable note | 0 | 13 |
Other, net | (12.7) | 14.7 |
Net cash used by investing activities | (424.9) | (424) |
Cash Flows - Financing Activities | ||
Change in notes payable | (37.3) | 1,681.3 |
Issuance of long-term debt | 500 | 750 |
Payment of long-term debt | (600) | (1,003) |
Proceeds from common stock issued on exercised options | 91.4 | 90.5 |
Purchases of common stock for treasury | (601.2) | (1,650.9) |
Dividends paid | (846.5) | (856.3) |
Distributions to noncontrolling and redeemable interest holders | (48.3) | (59.5) |
Other, net | (27.8) | (35.2) |
Net cash used by financing activities | (1,569.7) | (1,083.1) |
Effect of exchange rate changes on cash and cash equivalents | 46.3 | (16.5) |
Increase in cash and cash equivalents | 187 | 135.4 |
Cash and cash equivalents - beginning of year | 766.1 | 763.7 |
Cash and cash equivalents - end of period | 953.1 | 899.1 |
Cash Flow from changes in current assets and liabilities: | ||
Receivables | (25.5) | (75.1) |
Inventories | 56.6 | (42.1) |
Prepaid expenses and other current assets | 13.3 | 53.3 |
Accounts payable | 413 | (100.4) |
Other current liabilities | (62.5) | (204.5) |
Changes in current assets and liabilities | $ 394.9 | $ (368.8) |
BACKGROUND
BACKGROUND | 9 Months Ended |
Feb. 25, 2018 | |
Background [Abstract] | |
Background | ( 1 ) Background 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 (U.S. GAAP) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature, including the elimination of all intercompany t ransactions and any noncontrolling and redeemable interests’ share of those transactions. Operating results for the quarter ended February 25, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending May 27, 2018 . These state ments should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended May 28, 2017 . The accounting policies used in preparing these Consolidated Financial Statements ar e the same as those described in Note 2 to the Consolidated Financial Statements in that Form 10-K with the exception of the new accounting requirements adopted in the first quarter of fiscal 2018 for stock-based payments and goodwill impairment testing an d new accounting requirements adopted in the third quarter of fiscal 2018 for the reclassification of certain income tax effects from accumulated other comprehensive income to retained earnings. See Note 15 and Note 1 7 to the Consolidated Financial Statements in Part I, Item 1 of this report for additional information. Certain terms used throughout this report are defined in the “Glossary” section below. In the nine -month period ended February 25, 2018 , we recorded an adjustment related to a prior year which increased incom e tax expense and total liabilities by $40.5 million in our Consolidated Financial Statements. We determined the adjustment to be immaterial to our estimated Consolidated Statements of Earnings for the fiscal year ended May 27, 2018. |
ACQUISITION AND DIVESTITURE
ACQUISITION AND DIVESTITURE | 9 Months Ended |
Feb. 25, 2018 | |
Acquisition and Divestiture [Abstract] | |
Acquisition and Divestiture | ( 2 ) Acquisition and Divestiture During the third quarter of fiscal 2018, we entered into a definitive agreement and plan of merger with Blue Buffalo Pet Products, Inc. (“Blue Buffalo”), a publicly held pet food company, pursuant to which a subsidiary of General Mills will merge into Blue Buffalo, with Blue Buffalo surviving the merger as a wholly owned subsidiary of General Mills. Equity holders of Blue Buffalo will receive $40.00 per share in cash, representing an enter prise value of approximately $8.0 billion in addition to the assumption of approximately $39 4 million of outstanding debt which will be repaid upon transaction close. We expect to finance the transaction with a combination of debt, cash on hand and approx imately $1 .0 billion in equity. The transaction, which has been approved by the Boards of Directors of General Mills and Blue Buffalo, is subject to regulatory approvals and other customary closing conditions, and is expected to close by the end of fiscal 2018 . Invus, LP and founding Bishop family shareholders, representing more than 50 percent of Blue Buffalo’s outstanding shares, have delivered written consents approving the transaction and no other approval of Blue Buffalo’s Board of Directors or shareho lders is requir ed to complete the transaction. We expect to report the consolidated results of Blue Buffalo as a segment in future periods. During the second quarter of fiscal 2017, we sold our Martel, Ohio manufacturing facility in our Convenience Stores & Foodservice segment and simultaneously entered into a co-packing arrangement with the purc haser. We received $17.5 million in cash, and recorded a pre-tax loss of $13.5 million. |
RESTRUCTURING INITIATIVES
RESTRUCTURING INITIATIVES | 9 Months Ended |
Feb. 25, 2018 | |
Restructuring Initiatives [Abstract] | |
Restructuring Initiatives | ( 3 ) Restructuring Initiatives We are currently pursuing several multi-year restructuring initiatives designed to increase our efficiency and focus our business behind our key growth strategies. Charges related to these activities were as follows: Quarter Ended Quarter Ended Feb. 25, 2018 Feb. 26, 2017 In Millions Severance Asset Write-offs Accelerated Depreciation Other Total Severance Asset Write-offs Accelerated Depreciation Other Total Global reorganization $ - $ - $ - $ - $ - $ 67.4 $ - $ - $ 5.7 $ 73.1 Closure of Melbourne, Australia plant - - 0.1 3.0 3.1 - - 5.6 0.1 5.7 Restructuring of certain international product lines - - - - - 0.6 1.6 - 0.1 2.3 Closure of Vineland, New Jersey plant - - - 0.2 0.2 - 0.4 7.1 0.2 7.7 Project Compass - - - - - (1.4) - - - (1.4) Project Century - 0.7 - 2.9 3.6 0.2 1.7 3.4 1.8 7.1 Combination of certain operational facilities 0.7 - - - 0.7 (0.5) - - - (0.5) Total $ 0.7 $ 0.7 $ 0.1 $ 6.1 $ 7.6 $ 66.3 $ 3.7 $ 16.1 $ 7.9 $ 94.0 Nine-Month Period Ended Nine-Month Period Ended Feb. 25, 2018 Feb. 26, 2017 In Millions Severance Asset Write-offs Accelerated Depreciation Other Total Severance Asset Write-offs Accelerated Depreciation Other Total Global reorganization $ 0.6 $ 0.6 $ - $ 0.2 $ 1.4 $ 67.4 $ - $ - $ 5.7 $ 73.1 Closure of Melbourne, Australia plant 0.6 - 2.2 5.2 8.0 11.3 - 6.3 0.1 17.7 Restructuring of certain international product lines - - - - - 7.0 37.4 (0.3) 1.5 45.6 Closure of Vineland, New Jersey plant (2.2) 8.9 10.6 (5.0) 12.3 12.3 5.4 16.1 1.8 35.6 Project Compass (0.2) - - - (0.2) (1.4) - 0.2 0.8 (0.4) Project Century 0.1 6.4 - (1.4) 5.1 0.7 9.8 18.0 8.7 37.2 Combination of certain operational facilities 0.7 - - - 0.7 (0.5) - - - (0.5) Total $ (0.4) $ 15.9 $ 12.8 $ (1.0) $ 27.3 $ 96.8 $ 52.6 $ 40.3 $ 18.6 $ 208.3 In the third quarter of fiscal 2017, we approved restructuring actions designed to better align our organizational structure with our strategic initiatives. This action will affect approximately 600 positions and we expect to incur approximately $76 million of net expenses relating to these actions, all of which will be cash. We have recorded $1.4 million of restructuring charges in the nine-month period ended February 25, 2018 relating to these actions. We recorded $73.1 million of restructuring charges in the third quarter of fiscal 2017. We expect these actions to be completed by the end of fiscal 2018. In the second quarter of fiscal 2017, we notified the employees and their representatives of our decision to close our pasta manufacturing facility in Melbourne , Australi a in our Europe & Australia segment to improve our margin structure. This action will affect approximately 350 positions, and we expect to incur approximately $34 million of net expenses relating to this action, of which approximately $3 million will be c ash. We recorded $3. 1 million of restructuring charges in the third quarter of fiscal 2018 and $8.0 million in the nine-month period ended February 25, 2018 relating to this action. We recorded $5.7 million of restructuring charges in the third quart er of fiscal 2017 and $17.7 million in the nine-month period ended February 26, 2017 . We expect this action to be completed by the end of fiscal 2019. In the first quarter of fiscal 2017, we announced a plan to restructure certain product lines in our Asia & Latin America segment. To eliminate excess capacity, we closed our snacks manufacturing facility in Marília, Brazil and ceased production operations for meals and snacks at our facility in São Bernardo do Campo, Brazil. We also ceased production of certain underperforming snack products at our facility in Nanjing, Chin a. These and other actions affect ed approximately 420 positions in our Brazilian operations and appr oximately 440 positions in our g reater China operations. We expect to incur approxima tely $42 million of net expenses related to these actions, of which approximately $6 million will be cash . There have been no restructuring charges in fi scal 2018 relating to these actions. We recorded $2.3 million of restructuring charges in the third quarter of fiscal 2017 and $45.6 million in the nine-month period ended February 26, 2017 . We expect these actions to be completed by the end of fiscal 2019. In the first quarter of fiscal 2017, we approved a plan to close our Vineland, New Jersey facilit y to eliminate excess soup capacity in our North America Retail segment. This action affected 380 positions, and we expect to incur approximately $54 million of net expenses relating to this action, of which approximately $11 million will be cash. W e reco rded $0.2 million of restructuring charges in the third quarter of fiscal 2018 and $12.3 million in the nine-month period ended February 25, 2018. We recorded $7.7 million of restructuring charges in the third quarter of fiscal 2 017 and $35.6 million in the nine-month period ended February 26, 2017. We expect this action to be completed by the end of fiscal 2018. During the nine-month period ended February 25, 2018, we paid $39.6 million in cash relating to restructuring initiatives and $67.1 million in the nine-month period ended February 26, 2017 . In addition to restructuring charges, we recorded $ 3 million of project-related costs in cost of sales in the third quarter of fisca l 2018 and $8.4 million in the nine-month period ended February 25, 2018. We paid $8.0 million in cash in the nine-month period ended February 25, 2018 for project-related costs and $40.2 million in the nine-month period ended February 26, 2017. Restructuring cha r ges and project-related costs are recorded in our Consolidated Statements of Earnings as follows: Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Cost of sales $ 0.1 $ 16.4 $ 13.0 $ 42.8 Restructuring, impairment, and other exit costs 7.5 77.6 14.3 165.5 Total restructuring charges 7.6 94.0 27.3 208.3 Project-related costs classified in cost of sales $ 3.0 $ 11.5 $ 8.4 $ 36.4 The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: In Millions Severance Contract Termination Other Exit Costs Total Reserve balance as of May 28, 2017 $ 81.8 $ 0.7 $ 2.5 $ 85.0 Fiscal 2018 charges, including foreign currency translation (1.8) 0.2 (1.1) (2.7) Utilized in fiscal 2018 (43.0) (0.8) (0.9) (44.7) Reserve balance as of Feb. 25, 2018 $ 37.0 $ 0.1 $ 0.5 $ 37.6 The charges recognized in the roll forward of our reserves for restructuring and other exit costs do not include items charged directly to expense (e.g., asset impairment charges, accelerated depreciation, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Feb. 25, 2018 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | ( 4 ) Goodwill and Other Intangible Assets The components of goodwill and other intangible assets are as follows: In Millions Feb. 25, 2018 May 28, 2017 Goodwill $ 8,867.3 $ 8,747.2 Other intangible assets: Intangible assets not subject to amortization: Brands and other indefinite-lived intangibles 4,222.2 4,161.1 Intangible assets subject to amortization: Franchise agreements, customer relationships, and other finite-lived intangibles 570.0 524.8 Less accumulated amortization (188.1) (155.5) Intangible assets subject to amortization, net 381.9 369.3 Other intangible assets 4,604.1 4,530.4 Total $ 13,471.4 $ 13,277.6 Based on the carrying value of finite-lived intangible assets as of February 25, 2018 , annual amortization expense for each of the next five fiscal years is estimated to be approximately $28 million. The changes in the carrying amount of goodwill during fiscal 2018 were as follows: In Millions North America Retail Convenience Stores & Foodservice Europe & Australia Asia & Latin America Joint Ventures Total Balance as of May 28, 2017 $ 6,406.5 $ 918.8 $ 700.8 $ 312.4 $ 408.7 $ 8,747.2 Other activity, primarily foreign currency translation 7.3 - 68.4 3.8 40.6 120.1 Balance as of Feb. 25, 2018 $ 6,413.8 $ 918.8 $ 769.2 $ 316.2 $ 449.3 $ 8,867.3 The changes in the carrying amount of other intangible assets during fisca l 2018 were as follows: In Millions Total Balance as of May 28, 2017 $ 4,530.4 Other activity, primarily foreign currency translation 73.7 Balance as of Feb. 25, 2018 $ 4,604.1 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2018 , and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Yoki and Progresso brand intangible assets and the Latin America reporting unit. The exces s fair value as of the fiscal 2018 test date of the Yoki and Progresso brand intangible assets and the Latin America reporting unit is as follows: In Millions Carrying Value of Intangible Asset Excess Fair Value as of Fiscal 2018 Test Date Yoki $ 138.2 1% Progresso 462.1 6% Latin America $ 272.0 21% In addition, while having significant coverage as of our fiscal 2018 assessment date, the Food Should Taste Good and Green Giant brand intangible assets an d the U.S. Yogurt reporting unit ha d risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Feb. 25, 2018 | |
Inventories [Abstract] | |
Inventories | ( 5 ) Inventories The components of inventories were as follows: In Millions Feb. 25, 2018 May 28, 2017 Raw materials and packaging $ 392.3 $ 395.4 Finished goods 1,169.8 1,224.3 Grain 101.6 73.0 Excess of FIFO over LIFO cost (211.2) (209.1) Total $ 1,452.5 $ 1,483.6 |
RISK MANAGEMENT ACTIVITIES
RISK MANAGEMENT ACTIVITIES | 9 Months Ended |
Feb. 25, 2018 | |
Risk Management Activities [Abstract] | |
Risk Management Activities | ( 6 ) Risk Management Activities Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps. We offset our exposures based on current and projected market conditions and generall y seek to acquire the inputs at as close to our planned cost as possible. We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings. Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are eff ective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of measuring segment operating performance, certain gains and losses are reported in unallocated co rporate items outside of segment operating results until such time that the exposure we are managing affects earnings. At that time we reclassify the gain or loss from unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the derivative without experiencing the resulting mark-to-market volatility, which remains in unallocated corporate items. Unallocated corporate items for the quarters and nine -month periods ended February 25, 2018 and February 26, 2017 included: Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Net gain (loss) on mark-to-market valuation of certain commodity positions $ 0.3 $ - $ (8.1) $ (15.9) Net loss on commodity positions reclassified from unallocated corporate items to segment operating profit 4.6 4.0 10.7 27.7 Net mark-to-market revaluation of certain grain inventories (7.7) 4.2 0.9 8.9 Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ (2.8) $ 8.2 $ 3.5 $ 20.7 As of February 25, 2018 , the net notional value of commodity derivatives was $ 377.9 million, of which $ 106.1 million related to energy inputs and $ 271.8 million related to agricultural inputs. These contracts relate to inputs that generally will be utilized within the next 12 months. In advance of planned debt financing related to the planned acquisition of Blue Buffalo, in fiscal 2018, we entered into $3,500.0 million of treasury locks due April 19, 2018, with an average fixed rate of 2.9 percent, of which $2,300.0 million were entered into in the third quarter of fiscal 2018. As of February 25, 2018, the net fair value of the treasury locks was a liability of less than $1 million. In advance of planned d ebt financing, in fiscal 2018, we entered into $500 .0 million of treasury locks due October 15, 2017 with an average fixed rate of 1.8 percent. All of these treasury locks were cash settled for $3.7 million during the second quarter of fiscal 2018, concurr ent with the issuance of our $500.0 million 5-year fixed-rate notes. In advance of planned debt financing, during the third quarter of fiscal 2016 and the first quarter of fiscal 2017, we entered into $400 .0 million and $100 .0 million, respectively, of tr easury locks due February 15, 2017 with an average fixed rate of 2.0 percent. All of these treasury locks were cash settled for $17.2 million during the third quarter of fiscal 2017, concurrent with the issuance of our $750.0 million 10-year fixed-rate no tes. The fair values of the derivative positions used in our risk management activities and other assets recorded at fair value were not material as of February 25, 2018 , and were Level 1 or Level 2 assets and liabilities in the fair value hierarchy. We did not si gnificantly change our valuation techniques from prior periods. We off er certain suppliers access to third party service s that allow them to view our scheduled payments online. The third party service s also allow suppliers to finance advances on our scheduled payments at the sole discretion of the supplier and the third party. We have no economic interest in these financing arrangements and no direct relationship wit h the suppliers, the third parties , or any financ ial institutions concerning these service s . All of our accounts payable remain as obligations to our su ppliers as stated in our supplier agreements. As of February 25, 2018 , $927 .0 million of ou r total accounts payabl e were payable to suppliers who utilize these third party services. |
DEBT
DEBT | 9 Months Ended |
Feb. 25, 2018 | |
Debt [Abstract] | |
Debt | ( 7 ) Debt The components of notes payable were as follows: In Millions Feb. 25, 2018 May 28, 2017 U.S. commercial paper $ 885.2 $ 954.7 Financial institutions 325.6 279.4 Total $ 1,210.8 $ 1,234.1 To ensure availability of funds, we maintain bank credit lines sufficient to cover our outstanding notes payable . Commercial paper is a continuing source of short-term financing. We have commercial paper programs available to us i n the United States and Europe. We also have committed, uncommitted, and asset-backed credit lines that support our foreign operations. In February 2018, we entered into a fee-paid commitment letter with certain lenders, pursuant to which such lenders have committed to provide a 364-day senior unsecured bridge term loan credit facility (the “Bridge Facility”) in an aggregate principal amount of up to $8.5 billion to provide the financing for the planned acquisition of Blue Buffalo. To the extent we obtain funding for the acquisition by issuing debt or equity securities, the availability of the Bridge Facility will be correspondingly reduced. The funding of the Bridge Facility is contingent on the satisfaction of certain customary conditions set forth in the commitment letter. The follow ing table details the fee-paid committed and uncommitted credit lines we had available as of February 25, 2018 : In Billions Facility Amount Borrowed Amount Credit facility expiring: February 2019 $ 8.5 $ - May 2022 2.7 - June 2019 0.2 0.2 Total committed credit facilities 11.4 0.2 Uncommitted credit facilities 0.5 0.2 Total committed and uncommitted credit facilities $ 11.9 $ 0.4 The credit facilities contain covenants, including a requirement to maintain a fixed charge coverage ratio of at least 2.5 times. We were in compliance with all credit facility covenants as of February 25, 2018 . Long-Term Debt The fair values and carrying amounts of long-term debt, including the current portion, were $ 8,512.6 million and $ 8,414.1 million, respectively , as of February 25, 2018 . The fair value of long-term debt was estimated using market quotations and discounted cash flows based on our current incremental borrowing rates for similar types of instruments. Long-term debt is a Level 2 liability in the fair value hierarchy. In February 2018, we paid $113.8 million to repurchase $100.0 million of our previously issue d 6.39% medium term notes due 2023. We recorded the $13.8 million premium paid in the repurchase as interest expense. In October 2017, we issued $500.0 million principal amount of 2.6 percent fixed-rate notes due October 12, 2022. Interest on the notes is payable semi-annually in arrears. We may redeem the notes in whole, or in part, at any time at the applicable redemption price. The notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds, together wi th cash on hand, were used to repay $500.0 million of 1.4 percent fixed-rate notes. In March 2017, we issued €300.0 million principal amount of floating-rate notes due March 20, 2019. Interest on the notes is payable quarterly in arrears. The notes are not generally redeemable prior to maturity. These notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds were used to repay a portion of our outstanding commercial paper. In February 2017, we repaid $1.0 billion of 5.7 percent fixed-rate notes. In January 2017, we issued $750.0 million principal amount of 3.2 percent fixed-rate notes due February 10, 2027. Interest on the notes is payable semi-annually in arrears. We may redeem the notes i n whole, or in part, at any time at the applicable redemption price. The notes are senior unsecured obligations that include a change of control repurchase provision. The net proceeds were used to repay a portion of our maturing long-term debt. Certain of our long-term debt agreements contain restrictive covenants. As of February 25, 2018 , we were in compliance with all of these covenants. |
REDEEMABLE AND NONCONTROLLING I
REDEEMABLE AND NONCONTROLLING INTERESTS | 9 Months Ended |
Feb. 25, 2018 | |
Redeemable and Noncontrolling Interests [Abstract] | |
Redeemable and Noncontrolling Interests | ( 8 ) Redeemable and Noncontrolling Interests We have a 51 percent co ntrolling interest in Yoplait SAS and a 50 percent int erest in Yoplait Marques SNC and Liberté Marques Sàrl . Sodiaal International ( Sodiaal ) holds the remaining interests in each of the entities. On the acquisition date , we recorded the $904.4 million fair value of Sodiaal’s 49 percent euro-denomi nated interest in Yoplait SAS as a redeemable interest on our Consolidated Balance Sheets. Sodiaal has the ability to put all or a portion of its redeemable interest to us at fair value once per year, up to three times before December 2024. We adjust the value of the redeemable interest through additional paid-in capital on our Consolidated Balance She ets quarterly to the redeemable interest’s redemption value, which approximates its fair value. Yoplait SAS pays dividends annually if it meets certain financial metrics set forth in its shareholders’ agreement. As of February 25, 2018 , the redemption value of the euro-denominated redeemable i nterest was $817.5 million. A subsidiary of Yoplait SAS has an exclusive milk supply agreement for its European operations with Sodiaal through July 1, 202 1. Net purchases totaled $ 172.7 million for the nine -month period ended February 25, 2018 and $134.6 million for the nine -month period ended February 26, 2017 . On the acquisition dates, we recorded the $281.4 million fair value of Sodiaal’s 50 percent euro-denominated interest in Yoplait Marques SNC and 50 percent Canadian dollar-denominated interest in Liberté Marques Sàrl as noncontrolling interests on our Consolidated Balance Sheets. Yoplait Marques SNC earns a royalty stream through a licensing agreement with Yoplait SAS for the rights to Yoplait and related trademarks. Liberté Marques Sàrl earns a royalty stream through licensing agreements w ith certain Yoplait group companies for the rights to Libe rté and related trademarks. These entities pay dividends annually based on their availab le cash as of their fiscal year end. The third-party holder of the Class A Interests in our General Mills Cereals, LLC (GMC) consolidated subsidiary receives quarterly preferred distributions from available net income based on the application of a floati ng preferred return rate to the holder’s capital account balance established in the most recent mark-to-market valuation (currently $251.5 million ). The preferred return rate is adjusted every three years through a negotiated agreement with the Class A Int erest holder or through a remarketing auction. On June 1, 2015, the floating preferred return rate on GMC’s Class A Interests was reset to the sum of three-month LIBOR plus 125 basis points. Our noncontrolling interests contain restrictive covenants. As o f February 25, 2018 , we were in compliance with all of these covenants. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Feb. 25, 2018 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | ( 9 ) Stockholders’ Equity The following tables provide details of total comprehensive income: Quarter Ended Quarter Ended Feb. 25, 2018 Feb. 26, 2017 General Mills Noncontrolling Interests Redeemable Interest General Mills Noncontrolling Interests Redeemable Interest In Millions Pretax Tax Net Net Net Pretax Tax Net Net Net Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 941.4 $ 2.8 $ 8.3 $ 357.8 $ 2.9 $ 9.5 Other comprehensive income (loss): Foreign currency translation $ (6.9) $ - (6.9) 10.3 20.1 $ 109.0 $ - 109.0 (0.5) 5.2 Other fair value changes: Securities 0.8 (0.2) 0.6 - - 0.7 (0.2) 0.5 - - Hedge derivatives (7.2) 1.2 (6.0) - (0.7) (6.2) 1.3 (4.9) - - Reclassification to earnings: Hedge derivatives (a) 3.9 (1.0) 2.9 - (0.1) (9.8) 1.8 (8.0) - (0.7) Amortization of losses and prior service costs (b) 45.1 (14.4) 30.7 - - 48.0 (18.1) 29.9 - - Other comprehensive income (loss) $ 35.7 $ (14.4) 21.3 10.3 19.3 $ 141.7 $ (15.2) 126.5 (0.5) 4.5 Total comprehensive income $ 962.7 $ 13.1 $ 27.6 $ 484.3 $ 2.4 $ 14.0 (a) (Gain) loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and selling, general, and administrative (SG&A) expenses for foreign exchange contracts. (b) Loss reclassified from AOCI into earnings is reported in SG&A expenses. Nine-Month Period Ended Nine-Month Period Ended Feb. 25, 2018 Feb. 26, 2017 General Mills Noncontrolling Interests Redeemable Interest General Mills Noncontrolling Interests Redeemable Interest In Millions Pretax Tax Net Net Net Pretax Tax Net Net Net Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 1,776.6 $ 8.8 $ 19.5 $ 1,248.6 $ 10.7 $ 26.2 Other comprehensive income (loss): Foreign currency translation $ (55.5) $ - (55.5) 32.4 66.1 $ 146.0 $ - 146.0 (15.7) (41.9) Other fair value changes: Securities 2.1 (0.7) 1.4 - - 1.2 (0.4) 0.8 - - Hedge derivatives (19.4) 3.9 (15.5) - (0.1) 52.5 (12.8) 39.7 - 2.7 Reclassification to earnings: Hedge derivatives (a) 7.2 (2.6) 4.6 - (1.2) (18.4) 1.4 (17.0) - (2.3) Amortization of losses and prior service costs (b) 132.7 (46.3) 86.4 - - 148.8 (56.5) 92.3 - - Other comprehensive income (loss) $ 67.1 $ (45.7) 21.4 32.4 64.8 $ 330.1 $ (68.3) 261.8 (15.7) (41.5) Total comprehensive income (loss) $ 1,798.0 $ 41.2 $ 84.3 $ 1,510.4 $ (5.0) $ (15.3) (a) (Gain) loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and SG&A expenses for foreign exchange contracts. (b) Loss reclassified from AOCI into earnings is reported in SG&A expenses. Accumulated other comprehensive loss balances, net of tax effects, were as follows: In Millions Feb. 25, 2018 May 28, 2017 Foreign currency translation adjustments $ (680.2) $ (624.7) Unrealized gain (loss) from: Securities 7.3 4.6 Hedge derivatives (11.0) 1.5 Pension, other postretirement, and postemployment benefits: Net actuarial loss (1,886.8) (1,645.4) Prior service costs 18.2 19.5 Accumulated other comprehensive loss $ (2,552.5) $ (2,244.5) |
STOCK PLANS
STOCK PLANS | 9 Months Ended |
Feb. 25, 2018 | |
Stock Plans [Abstract] | |
Stock Plans | ( 10 ) Stock Plans We have various stock-based compensation programs under which awards, including stock options, restricted stock, restricted stock units, and performance awards, may be granted to employees and non-employee directors. These programs and related accounting are described in Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 28, 2017 , and Note 17 to the Consolidated Financial Statements in Part I, Item 1 of this report . Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings was as follows: Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Compensation expense related to stock-based payments $ 14.5 $ 20.1 $ 63.4 $ 77.7 Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings includes amounts recognized in restructuring, impairment, and other exit costs in fiscal 2017 and fiscal 2018. As of February 25, 2018 , unrecognized compensation expense related to non-vested stock options, restricted stock units, and performance share units was $ 110.9 million. This expense will be recognized over 23 months, on average. Net cash pr oceeds from the exercise of stock options less shares used for withholding taxes and the intrinsic value of options exercised were as follows: Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Net cash proceeds $ 91.4 $ 90.5 Intrinsic value of options exercised $ 79.9 $ 153.1 We estimate the fair value of each stock option on the grant date using a Black-Scholes option-pricing model. Black-Scholes option-pricing models require us to make predictive assumptions regarding future stock price volatility, employee exercise behavior, and dividend yield. We estimate our future stock price volatility using the historical volatility over the expected term of the option, excluding time periods of volatility we believe a marketplace participant would exclude in estimating our stoc k price volatility. We also have considered, but did not use, implied volatility in our estimate, because trading activity in options on our stock, especially those with tenors of greater than 6 months, is insufficient to provide a reliable measure of exp ected volatility. Our method of selecting the other valuation a ssumptions is explained in Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 28, 2017 . The estimated fair values of stock op tions granted and the assumptions used for the Black-Scholes option-pricing model were as follows: Nine-Month Period Ended Feb. 25, 2018 Feb. 26, 2017 Estimated fair values of stock options granted $6.18 $8.80 Assumptions: Risk-free interest rate 2.2 % 1.7 % Expected term 8.2 years 8.5 years Expected volatility 15.8 % 17.8 % Dividend yield 3.6 % 2.9 % Information on stock option activity follows: Options Outstanding (Thousands) Weighted-Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Millions) Balance as of May 28, 2017 29,834.4 $ 40.47 Granted 2,816.7 55.52 Exercised (3,207.2) 31.43 Forfeited or expired (146.8) 58.69 Outstanding as of Feb. 25, 2018 29,297.1 $ 42.82 4.36 $ 343.4 Exercisable as of Feb. 25, 2018 20,297.2 $ 36.08 2.74 $ 343.4 Information on restricted stock and performance share unit activity follows: Equity Classified Liability Classified Share-Settled Units (Thousands) Weighted-Average Grant-Date Fair Value Share-Settled Units (Thousands) Weighted-Average Grant-Date Fair Value Non-vested as of May 28, 2017 4,491.2 $ 56.08 123.3 $ 56.93 Granted 1,473.6 55.37 42.9 55.49 Vested (1,738.9) 50.53 (36.2) 49.42 Forfeited (415.9) 62.63 (9.4) 58.91 Non-vested as of Feb. 25, 2018 3,810.0 $ 57.62 120.6 $ 58.31 The total grant date fair value of restricted stock unit awards that vested during the period follows: Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Total grant date fair value $ 89.7 $ 71.2 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Feb. 25, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | ( 11 ) Earnings Per Share Basic and diluted earnings per share ( EPS ) were calculated using the following: Quarter Ended Nine-Month Period Ended In Millions, Except per Share Data Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Net earnings attributable to General Mills $ 941.4 $ 357.8 $ 1,776.6 $ 1,248.6 Average number of common shares - basic EPS 572.5 580.7 573.4 589.8 Incremental share effect from: (a) Stock options 7.9 7.8 7.7 8.5 Restricted stock, restricted stock units, and other 2.3 2.9 2.1 2.8 Average number of common shares - diluted EPS 582.7 591.4 583.2 601.1 Earnings per share - basic $ 1.64 $ 0.62 $ 3.10 $ 2.12 Earnings per share - diluted $ 1.62 $ 0.61 $ 3.05 $ 2.08 Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock method. Stock options, restricted stock units, and performance share units excluded from our computation of diluted EPS because they were not dilutive were as follows: Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Anti-dilutive stock options, restricted stock units, and performance share units 5.2 2.4 6.8 2.2 |
SHARE REPURCHASES
SHARE REPURCHASES | 9 Months Ended |
Feb. 25, 2018 | |
Shares Repurchases [Abstract] | |
Share Repurchases | ( 12 ) Share Repurchases Share repurchases were as follows: Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Shares of common stock - 4.9 10.9 25.4 Aggregate purchase price $0.7 $301.0 $601.2 $1,650.9 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS | 9 Months Ended |
Feb. 25, 2018 | |
Statements of Cash Flows [Abstract] | |
Statements of Cash Flows | ( 13 ) Statements of Cash Flows Our Consolidated Statement s of Cash F low s include the following: Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Net cash interest payments $ 237.9 $ 263.8 Net income tax payments $ 424.3 $ 394.3 |
RETIREMENT AND POSTEMPLOYMENT B
RETIREMENT AND POSTEMPLOYMENT BENEFITS | 9 Months Ended |
Feb. 25, 2018 | |
Retirement and Postemployment Benefits [Abstract] | |
Retirement and Postemployment Benefits | ( 14 ) Retirement and Postemployment Benefits In fiscal 2017, we changed the method used to estimate the service and interest cost components of the net periodic benefit expense for our United States and most of our international defined benefit pension, other postretirement benefit, and postemployment benefit plans. We adopted a full yield curve approach to estimate service cost and interest cost by applying the specific spot rates along the yield curve used to determine the benefit obligation to the relevant projected cash flows. This method provides a more precise measurement of service and interest costs by correlating the timing of the plans’ liability cash flows to the corresponding rate on the yield curve. Components of net periodic benefit expense are as f ollows: Defined Benefit Pension Plans Other Postretirement Benefit Plans Postemployment Benefit Plans Quarter Ended Quarter Ended Quarter Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Service cost $ 25.7 $ 29.9 $ 2.9 $ 3.2 $ 2.1 $ 2.2 Interest cost 54.5 54.1 7.6 8.2 0.6 0.7 Expected return on plan assets (120.1) (121.6) (13.0) (12.1) - - Amortization of losses 44.6 47.2 0.2 0.6 0.2 0.4 Amortization of prior service costs (credits) 0.4 0.6 (1.3) (1.5) 0.2 0.2 Other adjustments - - - - 0.4 3.4 Net expense (income) $ 5.1 $ 10.2 $ (3.6) $ (1.6) $ 3.5 $ 6.9 Defined Benefit Pension Plans Other Postretirement Benefit Plans Postemployment Benefit Plans Nine-Month Period Ended Nine-Month Period Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Service cost $ 77.1 $ 89.9 $ 8.7 $ 9.4 $ 6.4 $ 6.6 Interest cost 163.4 162.4 22.8 24.2 1.7 2.1 Expected return on plan assets (360.1) (365.1) (39.1) (36.3) - - Amortization of losses 132.8 142.2 0.6 1.9 0.6 1.3 Amortization of prior service costs (credits) 1.4 1.8 (4.0) (4.1) 0.5 0.5 Other adjustments - 2.1 - 1.3 7.2 10.2 Settlement or curtailment losses - 4.4 - 0.7 - - Net expense (income) $ 14.6 $ 37.7 $ (11.0) $ (2.9) $ 16.4 $ 20.7 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Feb. 25, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | ( 15 ) Income Taxes On December 22, 2017, the U.S. Tax Cuts and Jobs Act (TCJA) was signed into law. The TCJA results in significant revisions to the U.S. corporate income tax system, including a reduction in the U.S. corporate income tax rate, implementation of a territorial system and a one-time deemed repatriation tax on untaxed foreign earnings. The TCJA also results in a U.S. federal statutory blended rate of 29.4 percent for fiscal 2018. Generally, the impacts of the new legislation woul d be required to be recorded in the period of enactment which for us is the third quarter of fiscal 2018. However, Accounting Standards Update 2018-05: Income Taxes (Topic 740) (ASU 2018-05) was issued with guidance allowing for the recognition of provisi onal amounts in the event that the accounting is not complete and a reasonable estimate can be made. The guidance allows for a measurement period of up to one year from the enactment date to finalize the accounting related to the TCJA. As of February 25, 2018, we have not completed our accounting for the tax effects of the TCJA. During the third quarter of fiscal 2018, we recorded a provisional net benefit using reasonable estimates for those tax effects based on analysis and information available to dat e. The provisional net benefit is subject to revisions as we complete our analysis of the TCJA, collect and prepare necessary data, and interpret any additional guidance issued by the U.S. Treasury Department, Internal Revenue Service, Financial Accountin g Standards Board, and other standard setting and regulatory bodies. Adjustments may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. Our accounting for the tax effects of the TCJA w ill be completed during the measurement period of up to one year from the enactment date. During the third quarter of fiscal year 2018, we recorded an estimated net discrete benefit of $ 503.8 million. This net benefit consists primarily of a $ 617.8 milli on provisional deferred tax benefit from revaluing our net U.S. deferred tax liabilities to reflect the new U.S. corporate tax rate, partially offset by a n $83.9 million provisional charge for the estimated transition tax and an additional $30.1 million pr ovisional deferred tax liability related to changes in our assertion that we will reinvest unremitted foreign earnings indefinitely. Our estimate of the deferred tax benefit due to the revaluation of our net U.S. deferred tax liabilities is a provisional amount under the guidance in ASU 2018-05. Due to the newly enacted U.S. tax rate change, timing differences that are estimated balances as of the date of enactment will result in changes to our estimate of the deferred rate change when those estimates are finalized with the filing of our fiscal 2018 income tax return. This is a result of the different federal income tax rates of 29.4 percent and 21.0 percent for fiscal 2018 and fiscal 2019, respectively. Since many of the deferred tax balances in the period of enactment include estimates of events that have not yet occurred, we are unable to determine the final impact of the tax rate change at this time. As a result of the TCJA, we are re-evaluating our assertion regarding the indefinite reinvestment of for eign earnings for most legal entities owned directly by our U.S. subsidiaries, and as such, we may need to accrue additional deferred taxes related to any changes in our assertion. As of the end of the third quarter of fiscal 2018, we have recorded a provi sional estimate for local country withholding taxes related to certain entities from which we expect to repatriate undistributed earnings . However, we do not have the necessary information gathered, prepared and analyzed to make a reasonable estimate of th e deferred taxes related to the rest of our foreign subsidiaries where we may change our indefinite reinvestment assertion . We will gather the information necessary for those subsidiaries and record any new deferred taxes in future periods once the analysi s is complete . In general, the transition tax is a result of the deemed repatriation imposed by the new legislation that results in the taxation of our accumulated foreign earnings and profits (E&P) at a 15.5 percent rate on liquid assets (i.e. cash and o ther specified assets) and 8 percent on the remaining unremitted foreign E&P, both net of foreign tax credits. At this time, we have not yet gathered, prepared and analyzed the information necessary to complete the complex calculations required to finalize the amount of our transition tax. We believe that our provisional calculations result in a reasonable estimate of the transition tax and related foreign tax credit, and as such have included those amounts in our provisional estimate in the third quarter o f fiscal 2018. As we complete the analysis of accumulated foreign E&P and related foreign taxes paid on an entity by entity basis and finalize the amounts held in cash or other specified assets, we will update our provisional estimate of the transition tax and related foreign tax credit in a future period. The legislation also includes provisions that will affect our fiscal 2019 results, including but not limited to, a reduction in the U.S. corporate tax rate on domestic operations; the creation of a new m inimum tax called the base erosion anti-abuse tax; a new provision that taxes U.S. allocated expenses as well as currently taxes certain income from foreign operations (Global Intangible Low Tax Income or GILTI); a new limitation on deductible interest exp ense; the repeal of the domestic manufacturing deduction; and limitations on the deductibility of certain executive compensation. While the new legislation generally eliminates U.S. federal income tax on dividends from foreign subsidiaries going forward , certain income earned by certain subsidiaries must be included currently in our U.S. taxable income under the new GILTI inclusion rules. Because of the complexity of the new GILTI rules, we are evaluating this provision and the application of U.S. GAAP. Under U.S. GAAP, we are allowed to make an accounting policy election and record the taxes as a period cost as incurred or factor such amounts into the measurement of deferred taxes. We have not yet computed a reasonable estimate of the effect of this p rovision and therefore, have not made a policy decision regarding this item. In addition, in the third quarter of fiscal 2018, we adopted new accounting requirements that provide the option to reclassify stranded income tax effects resulting from TCJA fro m AOCI to retained earnings. We elected to reclassify the stranded income tax effects of the TCJA of $329.4 million from AOCI to retained earnings. This reclassification consists of deferred taxes originally recorded in AOCI that exceed the newly enacted federal corporate tax rate. The new accounting requirements allow for adjustments to reclassification amounts in subsequent periods as a result of changes to the provisional amounts recorded. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Feb. 25, 2018 | |
Business Segment Information [Abstract] | |
Business Segment Information | ( 16 ) Business Segment Information We operate in the consumer foods industry. We have four operating segments by type of customer and geographic region as follows: North America Retail; Convenience Stores & Foodservice; Europe & Australia; and Asia & Latin America. Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers. Our pr oduct categories in this business segment are ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and a wide variety of organic products including refrigerated yogurt, nutrition bars, meal kits, salty snacks, ready-to-eat cereal, and grain snacks. Our major product categories in our Convenience Stores & Foodservice operating segment are ready-to-eat cereals, snacks, refrig erated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes. Many products we sell are branded to the consumer and nearly all are branded to our customers. We sell to distributors and operators in many customer channels inc luding foodservice, convenience stores, vending, and supermarket bakeries in the United States. Our Europe & Australia operating segment reflects retail and foodservice businesses in the greater Europe and Australia regions. Our product categories include refrigerated yogurt, meal kits, super-premium ice cream, refrigerated and frozen dough products, shelf stable vegetables, grain snacks, and dessert and baking mixes. We also sell super-premium ice cream directly to consumers through owned retail shops. Rev enues from franchise fees are reported in the region or country where the end customer is located. Our Asia & Latin America operating segment consists of retail and foodservice businesses in the greater Asia and South America regions. Our product categorie s include super-premium ice cream and frozen desserts, refrigerated and frozen dough products, dessert and baking mixes, meal kits, salty and grain snacks, wellness beverages, and refrigerated yogurt. We also sell super-premium ice cream and frozen dessert s directly to consumers through owned retail shops. 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 int ernational joint ventures. Revenues from export activities are reported in the region or country where the end customer is located. Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, i mpairment, and other exit costs. Unallocated corporate items include corporate overhead expenses, variances to planned domestic employee benefits and incentives, contributions t o the General Mills Foundation , restructuring initiative project-related costs, and other items that are not part of our measurement of segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and losses from mark-to-market valuation of certain commodity positio ns until passed back to our operating segments. These items affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability reviewed by executive management. Under our supply chain organiza tion, our manufacturing, warehouse, and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and depreciation and amortization expenses are neither maintained nor available by operating segment. Our operating segment results were as follows: Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Net sales: North America Retail $ 2,517.4 $ 2,499.0 $ 7,727.4 $ 7,804.8 Convenience Stores & Foodservice 460.3 448.5 1,419.6 1,382.3 Europe & Australia 469.8 424.5 1,428.4 1,338.0 Asia & Latin America 434.8 421.2 1,274.8 1,288.1 Total $ 3,882.3 $ 3,793.2 $ 11,850.2 $ 11,813.2 Operating profit: North America Retail $ 518.3 $ 516.7 $ 1,674.4 $ 1,795.9 Convenience Stores & Foodservice 84.3 93.6 275.6 295.4 Europe & Australia 27.3 42.0 84.8 127.2 Asia & Latin America (2.1) 10.0 30.1 61.3 Total segment operating profit 627.8 662.3 2,064.9 2,279.8 Unallocated corporate items 27.6 42.2 102.3 143.6 Divestiture loss - - - 13.5 Restructuring, impairment, and other exit costs 7.5 77.6 14.3 165.5 Operating profit $ 592.7 $ 542.5 $ 1,948.3 $ 1,957.2 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Feb. 25, 2018 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | ( 17 ) New Accounting Pronouncements In the first quarter of fiscal 2018, we adopted new requirements for the accounting and presentation of stock-based payments. The adoption of this guidance resulted in the prospective recognition of realized windfall and shortfall tax benefits related to the exercise or vesting of stock-based awards in our Consolidated Statements of Earnings instead of additional paid-in capital within our Consolidated Balance Sheets. We recognized a windfall tax benefit in i ncome tax expense in our Consolidated Statements of Earnings of $ 6.6 million in the third quarter of fiscal 2018 and $ 26.8 million in the nine-month period ended February 25, 2018. We retrospectively adopted the guidance related to recla ssification of realized windfall tax benefits in our Consolidated Statements of Cash Flows. This resulted in reclassification s of $ 26.8 million and $65.1 million of cash provided by financing activities to operating activities for the nin e-month periods ended February 25, 2018 and February 26, 2017 , respectively. Additionally, we retrospectively adopted the guidance related to reclassification of employee tax withholdings in our Consolidated Statements of Cash Flows. This resulted in reclass ifications of $ 21.4 million and $35.2 million of cash used by operating activities to financing activities for the nine-month periods ended February 25, 2018 and February 26, 2017 , r espectively. Stock-based compensation expense continues to reflect estimated forfeitures. In the first q uarter of fiscal 2018, we adopted new accounting requirements which permit reporting entities to measure a goodwill impairment loss by the amount by which a reporting unit’s carrying value exceeds the reporting unit’s fair value. Previously, goodwill impai rment losses were required to be measured by determining the implied fair value of goodwill. Our annual goodwill impairment test was performed as of the first day of the second quarter of fiscal 2018, and the adoption of this guidance did not impact our res ults of operations or financial position. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Feb. 25, 2018 | |
Subsequent Event [Abstract] | |
Subsequent Event | ( 18 ) Subsequent Event Subsequent to the end of the third quarter fiscal 2018, we approved additional global cost savings initiatives designed to reduce administrative costs and align resources behind high growth priorities. In the fourth quarter of fiscal 2018, we expect to record total charges of approximately $40-$60 million, primarily reflecting employee termination benefits, all of which will be cash. The majority of these actions will be completed by the end of fiscal 2018 with the remainder completed in fiscal 2019 subject to consultation as locally required. |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Restructuring Initiatives [Abstract] | |
Schedule of restructuring initiatives [Table Text Block] | Quarter Ended Quarter Ended Feb. 25, 2018 Feb. 26, 2017 In Millions Severance Asset Write-offs Accelerated Depreciation Other Total Severance Asset Write-offs Accelerated Depreciation Other Total Global reorganization $ - $ - $ - $ - $ - $ 67.4 $ - $ - $ 5.7 $ 73.1 Closure of Melbourne, Australia plant - - 0.1 3.0 3.1 - - 5.6 0.1 5.7 Restructuring of certain international product lines - - - - - 0.6 1.6 - 0.1 2.3 Closure of Vineland, New Jersey plant - - - 0.2 0.2 - 0.4 7.1 0.2 7.7 Project Compass - - - - - (1.4) - - - (1.4) Project Century - 0.7 - 2.9 3.6 0.2 1.7 3.4 1.8 7.1 Combination of certain operational facilities 0.7 - - - 0.7 (0.5) - - - (0.5) Total $ 0.7 $ 0.7 $ 0.1 $ 6.1 $ 7.6 $ 66.3 $ 3.7 $ 16.1 $ 7.9 $ 94.0 Nine-Month Period Ended Nine-Month Period Ended Feb. 25, 2018 Feb. 26, 2017 In Millions Severance Asset Write-offs Accelerated Depreciation Other Total Severance Asset Write-offs Accelerated Depreciation Other Total Global reorganization $ 0.6 $ 0.6 $ - $ 0.2 $ 1.4 $ 67.4 $ - $ - $ 5.7 $ 73.1 Closure of Melbourne, Australia plant 0.6 - 2.2 5.2 8.0 11.3 - 6.3 0.1 17.7 Restructuring of certain international product lines - - - - - 7.0 37.4 (0.3) 1.5 45.6 Closure of Vineland, New Jersey plant (2.2) 8.9 10.6 (5.0) 12.3 12.3 5.4 16.1 1.8 35.6 Project Compass (0.2) - - - (0.2) (1.4) - 0.2 0.8 (0.4) Project Century 0.1 6.4 - (1.4) 5.1 0.7 9.8 18.0 8.7 37.2 Combination of certain operational facilities 0.7 - - - 0.7 (0.5) - - - (0.5) Total $ (0.4) $ 15.9 $ 12.8 $ (1.0) $ 27.3 $ 96.8 $ 52.6 $ 40.3 $ 18.6 $ 208.3 |
Schedule of restructuring charges and project-related costs presentation [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Cost of sales $ 0.1 $ 16.4 $ 13.0 $ 42.8 Restructuring, impairment, and other exit costs 7.5 77.6 14.3 165.5 Total restructuring charges 7.6 94.0 27.3 208.3 Project-related costs classified in cost of sales $ 3.0 $ 11.5 $ 8.4 $ 36.4 |
Rollforward of restructuring and other exit cost reserves [Table Text Block] | In Millions Severance Contract Termination Other Exit Costs Total Reserve balance as of May 28, 2017 $ 81.8 $ 0.7 $ 2.5 $ 85.0 Fiscal 2018 charges, including foreign currency translation (1.8) 0.2 (1.1) (2.7) Utilized in fiscal 2018 (43.0) (0.8) (0.9) (44.7) Reserve balance as of Feb. 25, 2018 $ 37.0 $ 0.1 $ 0.5 $ 37.6 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of components of goodwill and other intangible assets [Table Text Block] | In Millions Feb. 25, 2018 May 28, 2017 Goodwill $ 8,867.3 $ 8,747.2 Other intangible assets: Intangible assets not subject to amortization: Brands and other indefinite-lived intangibles 4,222.2 4,161.1 Intangible assets subject to amortization: Franchise agreements, customer relationships, and other finite-lived intangibles 570.0 524.8 Less accumulated amortization (188.1) (155.5) Intangible assets subject to amortization, net 381.9 369.3 Other intangible assets 4,604.1 4,530.4 Total $ 13,471.4 $ 13,277.6 |
Schedule of changes in the carrying amount of goodwill [Table Text Block] | In Millions North America Retail Convenience Stores & Foodservice Europe & Australia Asia & Latin America Joint Ventures Total Balance as of May 28, 2017 $ 6,406.5 $ 918.8 $ 700.8 $ 312.4 $ 408.7 $ 8,747.2 Other activity, primarily foreign currency translation 7.3 - 68.4 3.8 40.6 120.1 Balance as of Feb. 25, 2018 $ 6,413.8 $ 918.8 $ 769.2 $ 316.2 $ 449.3 $ 8,867.3 |
Schedule of changes in the carrying amount of other intangible assets [Table Text Block] | In Millions Total Balance as of May 28, 2017 $ 4,530.4 Other activity, primarily foreign currency translation 73.7 Balance as of Feb. 25, 2018 $ 4,604.1 |
Schedule of at-risk brand assets [Table Text Block] | The exces s fair value as of the fiscal 2018 test date of the Yoki and Progresso brand intangible assets and the Latin America reporting unit is as follows: In Millions Carrying Value of Intangible Asset Excess Fair Value as of Fiscal 2018 Test Date Yoki $ 138.2 1% Progresso 462.1 6% Latin America $ 272.0 21% |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Inventories [Abstract] | |
Schedule of components of inventories [Table Text Block] | In Millions Feb. 25, 2018 May 28, 2017 Raw materials and packaging $ 392.3 $ 395.4 Finished goods 1,169.8 1,224.3 Grain 101.6 73.0 Excess of FIFO over LIFO cost (211.2) (209.1) Total $ 1,452.5 $ 1,483.6 |
Risk Management Activities (Tab
Risk Management Activities (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Risk Management Activities [Abstract] | |
Schedule of unallocated corporate items [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Net gain (loss) on mark-to-market valuation of certain commodity positions $ 0.3 $ - $ (8.1) $ (15.9) Net loss on commodity positions reclassified from unallocated corporate items to segment operating profit 4.6 4.0 10.7 27.7 Net mark-to-market revaluation of certain grain inventories (7.7) 4.2 0.9 8.9 Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ (2.8) $ 8.2 $ 3.5 $ 20.7 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Debt [Abstract] | |
Schedule of components of notes payable [Table Text Block] | In Millions Feb. 25, 2018 May 28, 2017 U.S. commercial paper $ 885.2 $ 954.7 Financial institutions 325.6 279.4 Total $ 1,210.8 $ 1,234.1 |
Schedule of fee-paid committed and uncommitted credit lines [Table Text Block] | The follow ing table details the fee-paid committed and uncommitted credit lines we had available as of February 25, 2018 : In Billions Facility Amount Borrowed Amount Credit facility expiring: February 2019 $ 8.5 $ - May 2022 2.7 - June 2019 0.2 0.2 Total committed credit facilities 11.4 0.2 Uncommitted credit facilities 0.5 0.2 Total committed and uncommitted credit facilities $ 11.9 $ 0.4 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Stockholders' Equity [Abstract] | |
Schedule of total comprehensive income [Table Text Block] | Quarter Ended Quarter Ended Feb. 25, 2018 Feb. 26, 2017 General Mills Noncontrolling Interests Redeemable Interest General Mills Noncontrolling Interests Redeemable Interest In Millions Pretax Tax Net Net Net Pretax Tax Net Net Net Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 941.4 $ 2.8 $ 8.3 $ 357.8 $ 2.9 $ 9.5 Other comprehensive income (loss): Foreign currency translation $ (6.9) $ - (6.9) 10.3 20.1 $ 109.0 $ - 109.0 (0.5) 5.2 Other fair value changes: Securities 0.8 (0.2) 0.6 - - 0.7 (0.2) 0.5 - - Hedge derivatives (7.2) 1.2 (6.0) - (0.7) (6.2) 1.3 (4.9) - - Reclassification to earnings: Hedge derivatives (a) 3.9 (1.0) 2.9 - (0.1) (9.8) 1.8 (8.0) - (0.7) Amortization of losses and prior service costs (b) 45.1 (14.4) 30.7 - - 48.0 (18.1) 29.9 - - Other comprehensive income (loss) $ 35.7 $ (14.4) 21.3 10.3 19.3 $ 141.7 $ (15.2) 126.5 (0.5) 4.5 Total comprehensive income $ 962.7 $ 13.1 $ 27.6 $ 484.3 $ 2.4 $ 14.0 (a) (Gain) loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and selling, general, and administrative (SG&A) expenses for foreign exchange contracts. (b) Loss reclassified from AOCI into earnings is reported in SG&A expenses. Nine-Month Period Ended Nine-Month Period Ended Feb. 25, 2018 Feb. 26, 2017 General Mills Noncontrolling Interests Redeemable Interest General Mills Noncontrolling Interests Redeemable Interest In Millions Pretax Tax Net Net Net Pretax Tax Net Net Net Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 1,776.6 $ 8.8 $ 19.5 $ 1,248.6 $ 10.7 $ 26.2 Other comprehensive income (loss): Foreign currency translation $ (55.5) $ - (55.5) 32.4 66.1 $ 146.0 $ - 146.0 (15.7) (41.9) Other fair value changes: Securities 2.1 (0.7) 1.4 - - 1.2 (0.4) 0.8 - - Hedge derivatives (19.4) 3.9 (15.5) - (0.1) 52.5 (12.8) 39.7 - 2.7 Reclassification to earnings: Hedge derivatives (a) 7.2 (2.6) 4.6 - (1.2) (18.4) 1.4 (17.0) - (2.3) Amortization of losses and prior service costs (b) 132.7 (46.3) 86.4 - - 148.8 (56.5) 92.3 - - Other comprehensive income (loss) $ 67.1 $ (45.7) 21.4 32.4 64.8 $ 330.1 $ (68.3) 261.8 (15.7) (41.5) Total comprehensive income (loss) $ 1,798.0 $ 41.2 $ 84.3 $ 1,510.4 $ (5.0) $ (15.3) (a) (Gain) loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and SG&A expenses for foreign exchange contracts. (b) Loss reclassified from AOCI into earnings is reported in SG&A expenses. |
Schedule of accumulated other comprehensive income, net of tax effects [Table Text Block] | In Millions Feb. 25, 2018 May 28, 2017 Foreign currency translation adjustments $ (680.2) $ (624.7) Unrealized gain (loss) from: Securities 7.3 4.6 Hedge derivatives (11.0) 1.5 Pension, other postretirement, and postemployment benefits: Net actuarial loss (1,886.8) (1,645.4) Prior service costs 18.2 19.5 Accumulated other comprehensive loss $ (2,552.5) $ (2,244.5) |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Stock Plans [Abstract] | |
Schedule of compensation expense related to stock-based payments [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Compensation expense related to stock-based payments $ 14.5 $ 20.1 $ 63.4 $ 77.7 |
Schedule of net cash proceeds received from the exercise of stock options [Table Text Block] | Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Net cash proceeds $ 91.4 $ 90.5 Intrinsic value of options exercised $ 79.9 $ 153.1 |
Schedule of estimated fair value of stock options granted and the assumptions used for the Black-Scholes option-pricing model [Table Text Block] | Nine-Month Period Ended Feb. 25, 2018 Feb. 26, 2017 Estimated fair values of stock options granted $6.18 $8.80 Assumptions: Risk-free interest rate 2.2 % 1.7 % Expected term 8.2 years 8.5 years Expected volatility 15.8 % 17.8 % Dividend yield 3.6 % 2.9 % |
Schedule of information on stock option activity [Table Text Block] | Options Outstanding (Thousands) Weighted-Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Millions) Balance as of May 28, 2017 29,834.4 $ 40.47 Granted 2,816.7 55.52 Exercised (3,207.2) 31.43 Forfeited or expired (146.8) 58.69 Outstanding as of Feb. 25, 2018 29,297.1 $ 42.82 4.36 $ 343.4 Exercisable as of Feb. 25, 2018 20,297.2 $ 36.08 2.74 $ 343.4 |
Schedule of information on restricted stock and performance share unit activity [Table Text Block] | Equity Classified Liability Classified Share-Settled Units (Thousands) Weighted-Average Grant-Date Fair Value Share-Settled Units (Thousands) Weighted-Average Grant-Date Fair Value Non-vested as of May 28, 2017 4,491.2 $ 56.08 123.3 $ 56.93 Granted 1,473.6 55.37 42.9 55.49 Vested (1,738.9) 50.53 (36.2) 49.42 Forfeited (415.9) 62.63 (9.4) 58.91 Non-vested as of Feb. 25, 2018 3,810.0 $ 57.62 120.6 $ 58.31 The total grant date fair value of restricted stock unit awards that vested during the period follows: Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Total grant date fair value $ 89.7 $ 71.2 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions, Except per Share Data Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Net earnings attributable to General Mills $ 941.4 $ 357.8 $ 1,776.6 $ 1,248.6 Average number of common shares - basic EPS 572.5 580.7 573.4 589.8 Incremental share effect from: (a) Stock options 7.9 7.8 7.7 8.5 Restricted stock, restricted stock units, and other 2.3 2.9 2.1 2.8 Average number of common shares - diluted EPS 582.7 591.4 583.2 601.1 Earnings per share - basic $ 1.64 $ 0.62 $ 3.10 $ 2.12 Earnings per share - diluted $ 1.62 $ 0.61 $ 3.05 $ 2.08 Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock method. |
Schedule of anti-dulitive stock options, restricted stock units and performance share units [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Anti-dilutive stock options, restricted stock units, and performance share units 5.2 2.4 6.8 2.2 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Shares Repurchases [Abstract] | |
Share repurchases [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Shares of common stock - 4.9 10.9 25.4 Aggregate purchase price $0.7 $301.0 $601.2 $1,650.9 |
Statements of Cash Flows (Table
Statements of Cash Flows (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Statements of Cash Flows [Abstract] | |
Consolidated Statements of Cash Flows, Supplemental Disclosures [Table Text Block] | Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Net cash interest payments $ 237.9 $ 263.8 Net income tax payments $ 424.3 $ 394.3 |
Retirement and Postemployment37
Retirement and Postemployment Benefits (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Retirement and Postemployment Benefits [Abstract] | |
Schedule of components of net periodic benefit expense [Table Text Block] | Defined Benefit Pension Plans Other Postretirement Benefit Plans Postemployment Benefit Plans Quarter Ended Quarter Ended Quarter Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Service cost $ 25.7 $ 29.9 $ 2.9 $ 3.2 $ 2.1 $ 2.2 Interest cost 54.5 54.1 7.6 8.2 0.6 0.7 Expected return on plan assets (120.1) (121.6) (13.0) (12.1) - - Amortization of losses 44.6 47.2 0.2 0.6 0.2 0.4 Amortization of prior service costs (credits) 0.4 0.6 (1.3) (1.5) 0.2 0.2 Other adjustments - - - - 0.4 3.4 Net expense (income) $ 5.1 $ 10.2 $ (3.6) $ (1.6) $ 3.5 $ 6.9 Defined Benefit Pension Plans Other Postretirement Benefit Plans Postemployment Benefit Plans Nine-Month Period Ended Nine-Month Period Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Service cost $ 77.1 $ 89.9 $ 8.7 $ 9.4 $ 6.4 $ 6.6 Interest cost 163.4 162.4 22.8 24.2 1.7 2.1 Expected return on plan assets (360.1) (365.1) (39.1) (36.3) - - Amortization of losses 132.8 142.2 0.6 1.9 0.6 1.3 Amortization of prior service costs (credits) 1.4 1.8 (4.0) (4.1) 0.5 0.5 Other adjustments - 2.1 - 1.3 7.2 10.2 Settlement or curtailment losses - 4.4 - 0.7 - - Net expense (income) $ 14.6 $ 37.7 $ (11.0) $ (2.9) $ 16.4 $ 20.7 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Feb. 25, 2018 | |
Business Segment Information [Abstract] | |
Schedule of operating segment results [Table Text Block] | Quarter Ended Nine-Month Period Ended In Millions Feb. 25, 2018 Feb. 26, 2017 Feb. 25, 2018 Feb. 26, 2017 Net sales: North America Retail $ 2,517.4 $ 2,499.0 $ 7,727.4 $ 7,804.8 Convenience Stores & Foodservice 460.3 448.5 1,419.6 1,382.3 Europe & Australia 469.8 424.5 1,428.4 1,338.0 Asia & Latin America 434.8 421.2 1,274.8 1,288.1 Total $ 3,882.3 $ 3,793.2 $ 11,850.2 $ 11,813.2 Operating profit: North America Retail $ 518.3 $ 516.7 $ 1,674.4 $ 1,795.9 Convenience Stores & Foodservice 84.3 93.6 275.6 295.4 Europe & Australia 27.3 42.0 84.8 127.2 Asia & Latin America (2.1) 10.0 30.1 61.3 Total segment operating profit 627.8 662.3 2,064.9 2,279.8 Unallocated corporate items 27.6 42.2 102.3 143.6 Divestiture loss - - - 13.5 Restructuring, impairment, and other exit costs 7.5 77.6 14.3 165.5 Operating profit $ 592.7 $ 542.5 $ 1,948.3 $ 1,957.2 |
Background (Details)
Background (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Income Taxes [Abstract] | |
Income tax expense adjustment | $ 40.5 |
Acquisition and Divestiture (Ac
Acquisition and Divestiture (Acquisition) (Details) - Business Acquisition, Blue Buffalo [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
May 27, 2018 | Feb. 25, 2018 | |
Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Voting approval of Blue Buffalo | 50.00% | |
Forecast [Member] | ||
Business Acquisition [Line Items] | ||
Share price | $ 40 | |
Enterprise value | $ 8,000 | |
Debt assumption | 394 | |
Equity issuance | $ 1,000 |
Acquisition and Divestiture (Di
Acquisition and Divestiture (Divestiture) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Feb. 25, 2018 | Feb. 26, 2017 | Nov. 27, 2016 | Feb. 25, 2018 | Feb. 26, 2017 | |
Divestiture [Line Items] | |||||
Proceeds from divestiture | $ 0 | $ 17.5 | |||
Pre-tax loss on sale of business | $ 0 | $ 0 | $ 0 | $ 13.5 | |
Sale of Martel, Ohio Manufacturing Facility [Member] | Convenience Stores and Foodservice Segment [Member] | |||||
Divestiture [Line Items] | |||||
Proceeds from divestiture | $ 17.5 | ||||
Pre-tax loss on sale of business | $ 13.5 |
Restructuring Initiatives (Narr
Restructuring Initiatives (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018USD ($) | Feb. 26, 2017USD ($) | Feb. 25, 2018USD ($)positions | Feb. 26, 2017USD ($) | |
Restructuring and Related Cost [Line Items] | ||||
Net restructuring charges | $ 7.6 | $ 94 | $ 27.3 | $ 208.3 |
Cash payments for restructuring | 39.6 | 67.1 | ||
Payments for other project-related costs | $ 8 | 40.2 | ||
Q3 2017 Organizational Restructuring Realignment [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Restructuring action initiation date | Feb. 26, 2017 | |||
Restructuring action completion date | May 27, 2018 | |||
Number of positions affected | positions | 600 | |||
Expected net expense of restructuring action | 76 | $ 76 | ||
Expected cash payments for restructuring | 76 | |||
Net restructuring charges | 73.1 | $ 1.4 | ||
Q2 2017 Melbourne Pasta Manufacturing Facility Closure [Member] | Europe & Australia [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Restructuring action initiation date | Nov. 27, 2016 | |||
Restructuring action completion date | May 26, 2019 | |||
Number of positions affected | positions | 350 | |||
Expected net expense of restructuring action | 34 | $ 34 | ||
Expected cash payments for restructuring | 3 | |||
Net restructuring charges | 3.1 | 5.7 | $ 8 | 17.7 |
Q1 2017 Certain Product Lines Restructuring [Member] | Asia & Latin America [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Restructuring action initiation date | Aug. 28, 2016 | |||
Restructuring action completion date | May 26, 2019 | |||
Expected net expense of restructuring action | 42 | $ 42 | ||
Expected cash payments for restructuring | 6 | |||
Net restructuring charges | 2.3 | $ 0 | 45.6 | |
Q1 2017 Brazilian Facilities Restructuring [Member] | Asia & Latin America [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Number of positions affected | positions | 420 | |||
Q1 2017 China Facilities Restructuring [Member] | Asia & Latin America [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Number of positions affected | positions | 440 | |||
Q1 2017 Vineland Facility Closure [Member] | North America Retail Segment [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Restructuring action initiation date | Aug. 28, 2016 | |||
Restructuring action completion date | May 27, 2018 | |||
Number of positions affected | positions | 380 | |||
Expected net expense of restructuring action | 54 | $ 54 | ||
Expected cash payments for restructuring | 11 | |||
Net restructuring charges | $ 0.2 | $ 7.7 | $ 12.3 | $ 35.6 |
Restructuring Initiatives (Sche
Restructuring Initiatives (Schedule of restructuring charges) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | $ 0.7 | $ 66.3 | $ (0.4) | $ 96.8 |
Asset write-offs | 0.7 | 3.7 | 15.9 | 52.6 |
Accelerated depreciation (reversal) | 0.1 | 16.1 | 12.8 | 40.3 |
Other (reversal) | 6.1 | 7.9 | (1) | 18.6 |
Restructuring charges (reversal) | 7.6 | 94 | 27.3 | 208.3 |
Global reorganization [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0 | 67.4 | 0.6 | 67.4 |
Asset write-offs | 0 | 0 | 0.6 | 0 |
Accelerated depreciation (reversal) | 0 | 0 | 0 | 0 |
Other (reversal) | 0 | 5.7 | 0.2 | 5.7 |
Restructuring charges (reversal) | 0 | 73.1 | 1.4 | 73.1 |
Closure of Melbourne, Australia plant [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0 | 0 | 0.6 | 11.3 |
Asset write-offs | 0 | 0 | 0 | 0 |
Accelerated depreciation (reversal) | 0.1 | 5.6 | 2.2 | 6.3 |
Other (reversal) | 3 | 0.1 | 5.2 | 0.1 |
Restructuring charges (reversal) | 3.1 | 5.7 | 8 | 17.7 |
Restructuring of certain international product lines [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0 | 0.6 | 0 | 7 |
Asset write-offs | 0 | 1.6 | 0 | 37.4 |
Accelerated depreciation (reversal) | 0 | 0 | 0 | (0.3) |
Other (reversal) | 0 | 0.1 | 0 | 1.5 |
Restructuring charges (reversal) | 0 | 2.3 | 0 | 45.6 |
Closure of Vineland, New Jersey plant [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0 | 0 | (2.2) | 12.3 |
Asset write-offs | 0 | 0.4 | 8.9 | 5.4 |
Accelerated depreciation (reversal) | 0 | 7.1 | 10.6 | 16.1 |
Other (reversal) | 0.2 | 0.2 | (5) | 1.8 |
Restructuring charges (reversal) | 0.2 | 7.7 | 12.3 | 35.6 |
Project Compass [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0 | (1.4) | (0.2) | (1.4) |
Asset write-offs | 0 | 0 | 0 | 0 |
Accelerated depreciation (reversal) | 0 | 0 | 0 | 0.2 |
Other (reversal) | 0 | 0 | 0 | 0.8 |
Restructuring charges (reversal) | 0 | (1.4) | (0.2) | (0.4) |
Project Century [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0 | 0.2 | 0.1 | 0.7 |
Asset write-offs | 0.7 | 1.7 | 6.4 | 9.8 |
Accelerated depreciation (reversal) | 0 | 3.4 | 0 | 18 |
Other (reversal) | 2.9 | 1.8 | (1.4) | 8.7 |
Restructuring charges (reversal) | 3.6 | 7.1 | 5.1 | 37.2 |
Combination of certain operational facilities [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance (reversal) | 0.7 | (0.5) | 0.7 | (0.5) |
Asset write-offs | 0 | 0 | 0 | 0 |
Accelerated depreciation (reversal) | 0 | 0 | 0 | 0 |
Other (reversal) | 0 | 0 | 0 | 0 |
Restructuring charges (reversal) | $ 0.7 | $ (0.5) | $ 0.7 | $ (0.5) |
Restructuring Initiatives (Sc44
Restructuring Initiatives (Schedule of restructuring charges classification) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
Restructuring and Related Cost [Line Items] | ||||
Total charges | $ 7.6 | $ 94 | $ 27.3 | $ 208.3 |
Project-related costs classified in cost of sales | 3 | 11.5 | 8.4 | 36.4 |
Cost of Sales [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Total charges | 0.1 | 16.4 | 13 | 42.8 |
Restructuring, Impairment, and Other Exit Costs [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Total charges | $ 7.5 | $ 77.6 | $ 14.3 | $ 165.5 |
Restructuring Initiatives (Sc45
Restructuring Initiatives (Schedule of restructuring and other exit cost reserves) (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | $ 85 |
Restructuring charges paid out of reserve, including foreign currency translation | (2.7) |
Restructuring reserve utilized | (44.7) |
Restructuring Reserve, Ending Balance | 37.6 |
Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 81.8 |
Restructuring charges paid out of reserve, including foreign currency translation | (1.8) |
Restructuring reserve utilized | (43) |
Restructuring Reserve, Ending Balance | 37 |
Contract Termination [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 0.7 |
Restructuring charges paid out of reserve, including foreign currency translation | 0.2 |
Restructuring reserve utilized | (0.8) |
Restructuring Reserve, Ending Balance | 0.1 |
Other Exit Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 2.5 |
Restructuring charges paid out of reserve, including foreign currency translation | (1.1) |
Restructuring reserve utilized | (0.9) |
Restructuring Reserve, Ending Balance | $ 0.5 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Narrative) (Details) | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Goodwill and Other Intangible Assets [Abstract] | |
Future Amortization Expense, Year One | $ 28,000,000 |
Future Amortization Expense, Year Two | 28,000,000 |
Future Amortization Expense, Year Three | 28,000,000 |
Future Amortization Expense, Year Four | 28,000,000 |
Future Amortization Expense, Year Five | 28,000,000 |
Goodwill impairment | 0 |
Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-lived intangible assets impairment | $ 0 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Schedule of components of goodwill and other intangible assets) (Details) - USD ($) $ in Millions | Feb. 25, 2018 | May 28, 2017 |
Goodwill and Other Intangible Assets [Abstract] | ||
Goodwill | $ 8,867.3 | $ 8,747.2 |
Intangible assets not subject to amortization: | ||
Brands and other indefinite-lived intangibles | 4,222.2 | 4,161.1 |
Intangible assets subject to amortization: | ||
Franchise agreements, customer relationships, and other finite-lived intangibles | 570 | 524.8 |
Less accumulated amortization | (188.1) | (155.5) |
Intangible assets subject to amortization, net | 381.9 | 369.3 |
Other intangible assets | 4,604.1 | 4,530.4 |
Total | $ 13,471.4 | $ 13,277.6 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets (Schedule of changes in the carrying amount of goodwill) (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 8,747.2 |
Other activity, primarily foreign currency translation | 120.1 |
Ending balance | 8,867.3 |
North America Retail [Member] | |
Goodwill [Line Items] | |
Beginning balance | 6,406.5 |
Other activity, primarily foreign currency translation | 7.3 |
Ending balance | 6,413.8 |
Convenience Stores & Foodservice [Member] | |
Goodwill [Line Items] | |
Beginning balance | 918.8 |
Other activity, primarily foreign currency translation | 0 |
Ending balance | 918.8 |
Europe & Australia [Member] | |
Goodwill [Line Items] | |
Beginning balance | 700.8 |
Other activity, primarily foreign currency translation | 68.4 |
Ending balance | 769.2 |
Asia & Latin America [Member] | |
Goodwill [Line Items] | |
Beginning balance | 312.4 |
Other activity, primarily foreign currency translation | 3.8 |
Ending balance | 316.2 |
Joint Ventures [Member] | |
Goodwill [Line Items] | |
Beginning balance | 408.7 |
Other activity, primarily foreign currency translation | 40.6 |
Ending balance | $ 449.3 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets (Schedule of changes in the carrying amount of other intangible assets) (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Beginning balance | $ 4,530.4 |
Other activity, primarily foreign currency translation | 73.7 |
Ending balance | $ 4,604.1 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets (Schedule of at-risk brand intangible assets) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2018 | May 28, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Value of Intangible Asset | $ 4,604.1 | $ 4,530.4 |
Yoki [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Value of Intangible Asset | $ 138.2 | |
Excess Fair Value as of Test Date, Percentage | 1.00% | |
Progresso [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Value of Intangible Asset | $ 462.1 | |
Excess Fair Value as of Test Date, Percentage | 6.00% | |
Latin America {Member} | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying Value of Intangible Asset | $ 272 | |
Excess Fair Value as of Test Date, Percentage | 21.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Feb. 25, 2018 | May 28, 2017 |
Inventories [Abstract] | ||
Raw materials and packaging | $ 392.3 | $ 395.4 |
Finished goods | 1,169.8 | 1,224.3 |
Grain | 101.6 | 73 |
Excess of FIFO over LIFO cost | (211.2) | (209.1) |
Total | $ 1,452.5 | $ 1,483.6 |
Risk Management Activities (Nar
Risk Management Activities (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2017 | Jan. 31, 2017 | Nov. 26, 2017 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | May 27, 2018 | |
Derivative [Line Items] | |||||||
Issuance of long-term debt | $ 500 | $ 750 | |||||
Credit Risk [Abstract] | |||||||
Accounts Payable to Suppliers that Utilize Third Party Service | 927 | ||||||
2.6% Notes Due October 2022 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | ||||||
Issuance of long-term debt | $ 500 | $ 500 | |||||
Debt Instrument Term | 5 years | ||||||
3.2% Notes Due February 2027 [Member] | |||||||
Derivative [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | ||||||
Issuance of long-term debt | $ 750 | $ 750 | |||||
Debt Instrument Term | 10 years | ||||||
Commodity Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 377.9 | ||||||
Derivative Contracts Inputs, Average Period of Utilization | 12 months | ||||||
Energy Related Derivative [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 106.1 | ||||||
Agricultural Related Derivative [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | 271.8 | ||||||
Treasury Lock Expiring April 2018 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 2,300 | ||||||
Derivative, Maturity Date | Apr. 19, 2018 | ||||||
Derivative, Average Fixed Interest Rate | 2.90% | ||||||
Treasury Lock Expiring April 2018 [Member] | Maximum [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative Liability, Fair Value | $ 1,000 | ||||||
Treasury Lock Expiring April 2018 [Member] | Forecast [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 3,500 | ||||||
Treasury Lock Expiring October 2017 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 500 | ||||||
Derivative, Maturity Date | Oct. 15, 2017 | ||||||
Derivative, Average Fixed Interest Rate | 1.80% | ||||||
Cash paid (received) upon settlement | $ (3.7) | ||||||
Treasury Locks Expiring February 2017 [Member] | |||||||
Derivative [Line Items] | |||||||
Cash paid (received) upon settlement | $ (17.2) | ||||||
Treasury Lock One Expiring February 2017 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 400 | $ 400 | |||||
Derivative, Maturity Date | Feb. 15, 2017 | ||||||
Derivative, Average Fixed Interest Rate | 2.00% | 2.00% | |||||
Treasury Lock Two Expiring February 2017 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 100 | $ 100 | |||||
Derivative, Maturity Date | Feb. 15, 2017 | ||||||
Derivative, Average Fixed Interest Rate | 2.00% | 2.00% |
Risk Management Activities (Sch
Risk Management Activities (Schedule of unallocated corporate items) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
Commodity Price Risk [Abstract] | ||||
Net gain (loss) on mark-to-market valuation of certain commodity positions | $ 0.3 | $ 0 | $ (8.1) | $ (15.9) |
Net loss on commodity positions reclassified from unallocated corporate items to segment operating profit | 4.6 | 4 | 10.7 | 27.7 |
Net mark-to-market revaluation of certain grain inventories | (7.7) | 4.2 | 0.9 | 8.9 |
Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items | $ (2.8) | $ 8.2 | $ 3.5 | $ 20.7 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Feb. 28, 2018USD ($) | Oct. 31, 2017USD ($) | Mar. 31, 2017EUR (€) | Feb. 28, 2017USD ($) | Jan. 31, 2017USD ($) | Nov. 26, 2017USD ($) | Feb. 26, 2017USD ($) | Feb. 25, 2018USD ($) | Feb. 26, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||
Long-term debt, carrying value | $ 8,414.1 | ||||||||
Repayment of long-term debt | 600 | $ 1,003 | |||||||
Issuance of long-term debt | $ 500 | $ 750 | |||||||
Medium Term Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of long-term debt | $ 113.8 | ||||||||
Face amount of debt repurchased | $ 100 | ||||||||
Fixed interest rate percentage | 6.39% | ||||||||
Maturity date | May 28, 2023 | ||||||||
Premium payment recorded as interest expense | $ 13.8 | ||||||||
2.6% Notes Due October 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate percentage | 2.60% | ||||||||
Maturity date | Oct. 12, 2022 | ||||||||
Issuance of long-term debt | $ 500 | $ 500 | |||||||
1.4% Notes Due October 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of long-term debt | $ 500 | ||||||||
Fixed interest rate percentage | 1.40% | ||||||||
Floating Rate Notes Due March 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturity date | Mar. 20, 2019 | ||||||||
Issuance of long-term debt | € | € 300 | ||||||||
5.7% Notes Due February 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of long-term debt | $ 1,000 | ||||||||
Fixed interest rate percentage | 5.70% | ||||||||
3.2% Notes Due February 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate percentage | 3.20% | ||||||||
Maturity date | Feb. 10, 2027 | ||||||||
Issuance of long-term debt | $ 750 | $ 750 | |||||||
Long-term Debt Agreements Containing Restrictive Covenants [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Covenant compliancee | As of quarter end, we were in compliance with all of these covenants. | ||||||||
Fair Value Inputs Level 2 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, fair value | $ 8,512.6 |
Debt (Schedule of short-term de
Debt (Schedule of short-term debt) (Details) - USD ($) $ in Millions | Feb. 25, 2018 | May 28, 2017 |
Short-term Debt [Line Items] | ||
Notes payable | $ 1,210.8 | $ 1,234.1 |
Commercial Paper [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable | 885.2 | 954.7 |
Financial Institutions [Member] | ||
Short-term Debt [Line Items] | ||
Notes payable | $ 325.6 | $ 279.4 |
Debt (Schedule of credit facili
Debt (Schedule of credit facilities) (Details) $ in Billions | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Line Of Credit Facility [Line Items] | |
Facility Amount | $ 11.9 |
Borrowed Amount | 0.4 |
Committed Credit Facilities [Member] | |
Line Of Credit Facility [Line Items] | |
Facility Amount | 11.4 |
Borrowed Amount | $ 0.2 |
Minimum fixed charge coverage ratio | 2.5 |
Compliance with credit facility covenants | As of quarter end, we were in compliance with all of these covenants. |
Line of Credit Expiring February 2019 [Member] | Bridge Loan [Member] | |
Line Of Credit Facility [Line Items] | |
Facility Amount | $ 8.5 |
Borrowed Amount | $ 0 |
Expiration date of credit facility | Feb. 28, 2019 |
Debt Instrument Term | 364 days |
Line of Credit Expiring May 2022 [Member] | |
Line Of Credit Facility [Line Items] | |
Facility Amount | $ 2.7 |
Borrowed Amount | $ 0 |
Expiration date of credit facility | May 31, 2022 |
Line of Credit Expiring June 2019 [Member] | |
Line Of Credit Facility [Line Items] | |
Facility Amount | $ 0.2 |
Borrowed Amount | $ 0.2 |
Expiration date of credit facility | Jun. 30, 2019 |
Uncommitted Credit Facilities [Member] | |
Line Of Credit Facility [Line Items] | |
Facility Amount | $ 0.5 |
Borrowed Amount | $ 0.2 |
Redeemable and Noncontrolling57
Redeemable and Noncontrolling Interests (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Feb. 25, 2018 | Feb. 26, 2017 | May 28, 2017 | May 29, 2016 | Jul. 01, 2011 | |
Noncontrolling Interest [Line Items] | |||||
Redeemable interest value | $ 817.5 | $ 910.9 | |||
Noncontrolling interests | $ 369.1 | 357.6 | |||
Noncontrolling interests covenant compliancee | Our noncontrolling interests contain restrictive covenants. As of quarter end, we were in compliance with all of these covenants. | ||||
General Mills Cereals, LLC [Member] | Preferred Class A [Member] | Third Party Interest Holder [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest Holders Capital Account, General Mills Cereals, LLC | $ 251.5 | ||||
Preferred return rate adjustment period | 3 years | ||||
Preferred distributions variable rate | three-month LIBOR | ||||
Preferred distributions, basis spread on variable rate | 1.25% | ||||
General Mills [Member] | Yoplait SAS [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest percentage in consolidated subsidiary | 51.00% | ||||
General Mills [Member] | Yoplait Marques SNC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest percentage in consolidated subsidiary | 50.00% | ||||
General Mills [Member] | Liberte Marques Sarl [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest percentage in consolidated subsidiary | 50.00% | ||||
Sodiaal International Redeemable Interest [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Redeemable interest value | $ 817.5 | $ 910.9 | $ 845.6 | ||
Redeemable interest terms | Sodiaal has the ability to put all or a portion of its redeemable interest to us at fair value once per year, up to three times before December 2024. | ||||
Sodiaal International Redeemable Interest [Member] | Yoplait SAS [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Redeemable interest value | $ 817.5 | $ 904.4 | |||
Redeemable interest percentage | 49.00% | ||||
Sodiaal International Redeemable Interest [Member] | Yoplait SAS Subsidiary [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Net purchases from related party | $ 172.7 | $ 134.6 | |||
Sodiaal International Noncontrolling Interest [Member] | Yoplait Marques SNC and Liberte Marques Sarl [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interests | $ 281.4 | ||||
Sodiaal International Noncontrolling Interest [Member] | Yoplait Marques SNC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest percentage held by noncontrolling owners | 50.00% | ||||
Sodiaal International Noncontrolling Interest [Member] | Liberte Marques Sarl [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership interest percentage held by noncontrolling owners | 50.00% |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of total comprehensive income (loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | May 28, 2017 | ||
Net earnings attributable to General Mills | $ 941.4 | $ 357.8 | $ 1,776.6 | $ 1,248.6 | ||
Net earnings attributable to redeemable and noncontrolling interests | 11.1 | 12.4 | 28.3 | 36.9 | ||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Foreign currency translation | 23.5 | 113.7 | 43 | 88.4 | ||
Other fair value changes: | ||||||
Securities | 0.6 | 0.5 | 1.4 | 0.8 | ||
Hedge derivatives | (6.7) | (4.9) | (15.6) | 42.4 | ||
Reclassification to earnings: | ||||||
Hedge derivatives | 2.8 | (8.7) | 3.4 | (19.3) | ||
Amortization of losses and prior service costs | 30.7 | 29.9 | 86.4 | 92.3 | ||
Other comprehensive income (loss), net of tax | 50.9 | 130.5 | 118.6 | 204.6 | ||
Total comprehensive income (loss) attributable to General Mills | 962.7 | 484.3 | 1,798 | 1,510.4 | ||
General Mills [Member] | ||||||
Net earnings attributable to General Mills | 941.4 | 357.8 | 1,776.6 | 1,248.6 | ||
Other Comprehensive Income (Loss), Pretax: | ||||||
Foreign currency translation | (6.9) | 109 | (55.5) | 146 | ||
Other fair value changes: | ||||||
Securities | 0.8 | 0.7 | 2.1 | 1.2 | ||
Hedge derivatives | (7.2) | (6.2) | (19.4) | 52.5 | ||
Reclassification to earnings: | ||||||
Hedge derivatives | [1] | 3.9 | (9.8) | 7.2 | (18.4) | |
Amortization of losses and prior service costs | [2] | 45.1 | 48 | 132.7 | 148.8 | |
Other comprehensive income (loss), before tax | 35.7 | 141.7 | 67.1 | 330.1 | ||
Other Comprehensive Income (Loss), Tax: | ||||||
Foreign currency translation | 0 | 0 | 0 | 0 | ||
Other fair value changes: | ||||||
Securities | (0.2) | (0.2) | (0.7) | (0.4) | ||
Hedge derivatives | 1.2 | 1.3 | 3.9 | (12.8) | ||
Reclassification to earnings: | ||||||
Hedge derivatives | [1] | (1) | 1.8 | (2.6) | 1.4 | |
Amortization of losses and prior service costs | [2] | (14.4) | (18.1) | (46.3) | (56.5) | |
Other comprehensive income (loss), tax | (14.4) | (15.2) | (45.7) | (68.3) | ||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Foreign currency translation | (6.9) | 109 | (55.5) | 146 | ||
Other fair value changes: | ||||||
Securities | 0.6 | 0.5 | 1.4 | 0.8 | ||
Hedge derivatives | (6) | (4.9) | (15.5) | 39.7 | ||
Reclassification to earnings: | ||||||
Hedge derivatives | [1] | 2.9 | (8) | 4.6 | (17) | |
Amortization of losses and prior service costs | [2] | 30.7 | 29.9 | 86.4 | 92.3 | |
Other comprehensive income (loss), net of tax | 21.3 | 126.5 | 21.4 | 261.8 | ||
Total comprehensive income (loss) attributable to General Mills | 962.7 | 484.3 | 1,798 | 1,510.4 | ||
Noncontrolling Interests [Member] | ||||||
Net earnings attributable to redeemable and noncontrolling interests | 2.8 | 2.9 | 8.8 | 10.7 | ||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Foreign currency translation | 10.3 | (0.5) | 32.4 | (15.7) | ||
Other fair value changes: | ||||||
Securities | 0 | 0 | 0 | 0 | ||
Hedge derivatives | 0 | 0 | 0 | 0 | ||
Reclassification to earnings: | ||||||
Hedge derivatives | [1] | 0 | 0 | 0 | 0 | |
Amortization of losses and prior service costs | [2] | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 10.3 | (0.5) | 32.4 | (15.7) | ||
Total comprehensive income (loss) attributable to noncontrolling interests | 13.1 | 2.4 | 41.2 | (5) | ||
Redeemable Interests [Member] | ||||||
Net earnings attributable to redeemable and noncontrolling interests | 8.3 | 9.5 | 19.5 | 26.2 | ||
Other Comprehensive Income (Loss), Net of Tax: | ||||||
Foreign currency translation | 20.1 | 5.2 | 66.1 | (41.9) | ||
Other fair value changes: | ||||||
Securities | 0 | 0 | 0 | 0 | ||
Hedge derivatives | (0.7) | 0 | (0.1) | 2.7 | ||
Reclassification to earnings: | ||||||
Hedge derivatives | [1] | (0.1) | (0.7) | (1.2) | (2.3) | |
Amortization of losses and prior service costs | [2] | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 19.3 | 4.5 | 64.8 | (41.5) | ||
Total comprehensive income (loss) attributable to redeemable interests | $ 27.6 | $ 14 | $ 84.3 | $ (15.3) | $ 17.2 | |
[1] | (Gain) loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and selling, general, and administrative (SG&A) expenses for foreign exchange contracts. | |||||
[2] | Loss reclassified from AOCI into earnings is reported in SG&A expenses. |
Stockholders' Equity (Schedul59
Stockholders' Equity (Schedule of accumulated other income income (loss)) (Details) - USD ($) $ in Millions | Feb. 25, 2018 | May 28, 2017 |
Accumulated Other Comprehensive Loss, Net of Tax Effects [Abstract] | ||
Foreign currency translation adjustments | $ (680.2) | $ (624.7) |
Unrealized gain (loss) from: | ||
Securities | 7.3 | 4.6 |
Hedge derivatives | (11) | 1.5 |
Pension, other postretirement, and postemployment benefits: | ||
Net actuarial loss | (1,886.8) | (1,645.4) |
Prior service credits | 18.2 | 19.5 |
Accumulated other comprehensive loss | $ (2,552.5) | $ (2,244.5) |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) $ in Millions | 9 Months Ended |
Feb. 25, 2018USD ($) | |
Share-based Compensation Allocation and Classification in Financial Statements [Abstract] | |
Unrecognized compensation expense related to non-vested stock options, restricted stock, and performance share units | $ 110.9 |
Unrecognized compensation expense on non-vested awards weighted average period of recognition | 23 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | We estimate the fair value of each stock option on the grant date using a Black-Scholes option-pricing model. Black-Scholes option-pricing models require us to make predictive assumptions regarding future stock price volatility, employee exercise behavior, and dividend yield. We estimate our future stock price volatility using the historical volatility over the expected term of the option, excluding time periods of volatility we believe a marketplace participant would exclude in estimating our stock price volatility. We also have considered, but did not use, implied volatility in our estimate, because trading activity in options on our stock, especially those with tenors of greater than 6 months, is insufficient to provide a reliable measure of expected volatility. Our method of selecting the other valuation assumptions is explained in Note 11 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 28, 2017. |
Stock Plans (Schedule of compen
Stock Plans (Schedule of compensation expense related to stock-based payments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
Stock Plans [Abstract] | ||||
Compensation expense related to stock-based payments | $ 14.5 | $ 20.1 | $ 63.4 | $ 77.7 |
Stock Plans (Schedule of net ca
Stock Plans (Schedule of net cash proceeds from the exercise of stock options less shares used for withholding taxes and the intrisic value of options exercised) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2018 | Feb. 26, 2017 | |
Stock Plans [Abstract] | ||
Net cash proceeds | $ 91.4 | $ 90.5 |
Intrinsic value of options exercised | $ 79.9 | $ 153.1 |
Stock Plans (Schedule of estima
Stock Plans (Schedule of estimated fair value of stock options granted and the assumptions used for the Black-Scholes option-pricing model) (Details) - $ / shares | 9 Months Ended | |
Feb. 25, 2018 | Feb. 26, 2017 | |
Stock Plans [Abstract] | ||
Estimated fair values of stock options granted | $ 6.18 | $ 8.8 |
Assumptions: | ||
Risk-free interest rate | 2.20% | 1.70% |
Expected term | 8 years 2 months 12 days | 8 years 6 months |
Expected volatility | 15.80% | 17.80% |
Dividend yield | 3.60% | 2.90% |
Stock Plans (Schedule of inform
Stock Plans (Schedule of information on stock option activity) (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Feb. 25, 2018USD ($)$ / sharesshares | |
Options Outstanding [Abstract] | |
Beginning Balance, Outstanding | shares | 29,834,400 |
Granted | shares | 2,816,700 |
Exercised | shares | (3,207,200) |
Forfeited or expired | shares | (146,800) |
Ending Balance, Outstanding | shares | 29,297,100 |
Ending Balance, Exercisable | shares | 20,297,200 |
Weighted Average Exercise Price Per Share [Abstract] | |
Beginning Balance, Outstanding | $ / shares | $ 40.47 |
Granted | $ / shares | 55.52 |
Exercised | $ / shares | 31.43 |
Forfeited or expired | $ / shares | 58.69 |
Ending Balance, Outstanding | $ / shares | 42.82 |
Ending Balance, Exercisable | $ / shares | $ 36.08 |
Weighted Average Remaining Contractual Term [Abstract] | |
Ending Balance, Outstanding | 4 years 4 months 10 days |
Ending Balance, Exercisable | 2 years 8 months 26 days |
Aggregate Intrinsic Value [Abstract] | |
Ending Balance, Outstanding | $ | $ 343.4 |
Ending Balance, Exercisable | $ | $ 343.4 |
Stock Plans (Schedule of info65
Stock Plans (Schedule of information on restricted stock and performance award unit activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Feb. 25, 2018 | Feb. 26, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Additional Disclosures [Abstract] | ||
Total grant-date fair value | $ 89.7 | $ 71.2 |
Equity Classified Share-Settled [Member] | ||
Settled Units [Abstract] | ||
Beginning Balance (Non-vested) | 4,491,200 | |
Granted | 1,473,600 | |
Vested | (1,738,900) | |
Forfeited | (415,900) | |
Ending Balance (Non-vested) | 3,810,000 | |
Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning Balance (Non-vested) | $ 56.08 | |
Granted | 55.37 | |
Vested | 50.53 | |
Forfeited | 62.63 | |
Ending Balance (Non-vested) | $ 57.62 | |
Liability Classified Share-Settled [Member] | ||
Settled Units [Abstract] | ||
Beginning Balance (Non-vested) | 123,300 | |
Granted | 42,900 | |
Vested | (36,200) | |
Forfeited | (9,400) | |
Ending Balance (Non-vested) | 120,600 | |
Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning Balance (Non-vested) | $ 56.93 | |
Granted | 55.49 | |
Vested | 49.42 | |
Forfeited | 58.91 | |
Ending Balance (Non-vested) | $ 58.31 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of earnings per share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |||||
Earnings Per Share [Abstract] | ||||||||
Net earnings attributable to General Mills | $ 941.4 | $ 357.8 | $ 1,776.6 | $ 1,248.6 | ||||
Average number of common shares - basic EPS | 572.5 | 580.7 | 573.4 | 589.8 | ||||
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||
Average number of common shares - diluted EPS | 582.7 | 591.4 | 583.2 | 601.1 | ||||
Earnings per share - basic | $ 1.64 | $ 0.62 | $ 3.1 | $ 2.12 | ||||
Earnings per share - diluted | $ 1.62 | $ 0.61 | $ 3.05 | $ 2.08 | ||||
Other Disclosures [Abstract] | ||||||||
Anti-dilutive stock options, restricted stock units and performance share units | 5.2 | 2.4 | 6.8 | 2.2 | ||||
Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Incremental share effect | [1] | 7.9 | 7.8 | 7.7 | 8.5 | |||
Restricted Stock, Restricted Stock Units, and Other [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Incremental share effect | 2.3 | 2.9 | [1] | 2.1 | [1] | 2.8 | [1] | |
[1] | Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock method. |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | May 28, 2017 | |
Shares Repurchases [Abstract] | |||||
Shares of common stock purchased, shares | 0 | 4.9 | 10.9 | 25.4 | |
Shares purchased, aggregate purchase price | $ 0.7 | $ 301 | $ 601.2 | $ 1,650.9 | $ 1,651.5 |
Statements of Cash Flows (Detai
Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Feb. 25, 2018 | Feb. 26, 2017 | |
Statements of Cash Flows [Abstract] | ||
Net cash interest payments | $ 237.9 | $ 263.8 |
Net income tax payments | $ 424.3 | $ 394.3 |
Retirement and Postemployment69
Retirement and Postemployment Benefits (Schedule of components of net pension, other postretirement, and postemployment (income) expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 25.7 | $ 29.9 | $ 77.1 | $ 89.9 |
Interest cost | 54.5 | 54.1 | 163.4 | 162.4 |
Expected return on plan assets | (120.1) | (121.6) | (360.1) | (365.1) |
Amortization of losses | 44.6 | 47.2 | 132.8 | 142.2 |
Amortization of prior service costs (credits) | 0.4 | 0.6 | 1.4 | 1.8 |
Other adjustments | 0 | 0 | 0 | 2.1 |
Settlement or curtailment losses | 0 | 0 | 0 | 4.4 |
Net expense (income) | 5.1 | 10.2 | 14.6 | 37.7 |
Other Postretirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2.9 | 3.2 | 8.7 | 9.4 |
Interest cost | 7.6 | 8.2 | 22.8 | 24.2 |
Expected return on plan assets | (13) | (12.1) | (39.1) | (36.3) |
Amortization of losses | 0.2 | 0.6 | 0.6 | 1.9 |
Amortization of prior service costs (credits) | (1.3) | (1.5) | (4) | (4.1) |
Other adjustments | 0 | 0 | 0 | 1.3 |
Settlement or curtailment losses | 0 | 0 | 0 | 0.7 |
Net expense (income) | (3.6) | (1.6) | (11) | (2.9) |
Postemployment Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2.1 | 2.2 | 6.4 | 6.6 |
Interest cost | 0.6 | 0.7 | 1.7 | 2.1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of losses | 0.2 | 0.4 | 0.6 | 1.3 |
Amortization of prior service costs (credits) | 0.2 | 0.2 | 0.5 | 0.5 |
Other adjustments | 0.4 | 3.4 | 7.2 | 10.2 |
Settlement or curtailment losses | 0 | 0 | 0 | 0 |
Net expense (income) | $ 3.5 | $ 6.9 | $ 16.4 | $ 20.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 25, 2018 | Feb. 25, 2018 | May 26, 2019 | May 27, 2018 | |
Income Taxes [Abstract] | ||||
Tax Cuts and Jobs Act of 2017, net discrete benefit | $ 503.8 | |||
Tax Cuts and Jobs Act of 2017, provisional deferred tax benefit from revaluation of the net U.S. deferred tax liabilities | 617.8 | |||
Tax Cuts and Jobs Act of 2017, provisional charge for the estimated transition tax | 83.9 | |||
Tax Cuts and Jobs Act of 2017, provisional deferred tax liability related to changes in indefinite reinvestment assertion | $ 30.1 | |||
Tax Cuts and Jobs Act of 2017, Transition Tax, Percentage on Accumulated Foreign Earnings and Profits Applicable to Liquid Assets | 15.50% | |||
Tax Cuts and Jobs Act of 2017, Transition Tax, Percentage on Accumulated Foreign Earnings and Profits Applicable to Unremitted Foreign Earnings and Profits | 8.00% | |||
Reclassification from AOCI to retained earnings, stranded income tax effects resulting from the Tax Cuts and Jobs Act of 2017 | $ 329.4 | $ 0 | ||
Forecast [Member] | ||||
Tax Cuts and Jobs Act of 2017, U.S. federal statutory blended tax rate | 29.40% | |||
Federal income tax rate | 21.00% |
Business Segment Information (S
Business Segment Information (Schedule of operating segment results) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Feb. 25, 2018USD ($) | Feb. 26, 2017USD ($) | Feb. 25, 2018USD ($)segment | Feb. 26, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 4 | |||
Net sales | $ 3,882.3 | $ 3,793.2 | $ 11,850.2 | $ 11,813.2 |
Operating profit | 592.7 | 542.5 | 1,948.3 | 1,957.2 |
Divestiture loss | 0 | 0 | 0 | 13.5 |
Restructuring, impairment, and other exit costs | 7.5 | 77.6 | 14.3 | 165.5 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,882.3 | 3,793.2 | 11,850.2 | 11,813.2 |
Operating profit | 627.8 | 662.3 | 2,064.9 | 2,279.8 |
Unallocated Corporate Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 27.6 | 42.2 | 102.3 | 143.6 |
Significant Reconciling Items [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Divestiture loss | 0 | 0 | 0 | 13.5 |
Restructuring, impairment, and other exit costs | 7.5 | 77.6 | 14.3 | 165.5 |
North America Retail [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,517.4 | 2,499 | 7,727.4 | 7,804.8 |
Operating profit | 518.3 | 516.7 | 1,674.4 | 1,795.9 |
Convenience Stores & Foodservice [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 460.3 | 448.5 | 1,419.6 | 1,382.3 |
Operating profit | 84.3 | 93.6 | 275.6 | 295.4 |
Europe & Australia [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 469.8 | 424.5 | 1,428.4 | 1,338 |
Operating profit | 27.3 | 42 | 84.8 | 127.2 |
Asia & Latin America [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 434.8 | 421.2 | 1,274.8 | 1,288.1 |
Operating profit | $ (2.1) | $ 10 | $ 30.1 | $ 61.3 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) - Accounting Standards Update 2016-09 [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Feb. 25, 2018 | Feb. 25, 2018 | Feb. 26, 2017 | |
Recognized tax windfall benefits related to the exercise of stock-based awards | $ 6.6 | $ 26.8 | |
Reclassification of recognized tax windfall benefits related to the exercise of stock-based awards from financing activities to operating activities | 26.8 | $ 65.1 | |
Reclassification of employee tax withholdings on stock-based awards from operating activities to financing activities | $ 21.4 | $ 35.2 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
May 27, 2018 | Feb. 25, 2018 | Feb. 26, 2017 | Feb. 25, 2018 | Feb. 26, 2017 | |
Subsequent Event [Line Items] | |||||
Total charges | $ 7.6 | $ 94 | $ 27.3 | $ 208.3 | |
Cash payments | $ 39.6 | $ 67.1 | |||
Subsequent Event [Member] | Q4 2018 Global Cost Saving Initiative [Member] | Forecast [Member] | |||||
Subsequent Event [Line Items] | |||||
Expected completion date of actions | May 26, 2019 | ||||
Subsequent Event [Member] | Q4 2018 Global Cost Saving Initiative [Member] | Forecast [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Total charges | $ 40 | ||||
Cash payments | 40 | ||||
Subsequent Event [Member] | Q4 2018 Global Cost Saving Initiative [Member] | Forecast [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Total charges | 60 | ||||
Cash payments | $ 60 |