2011 Q4 Form 10-Q Financial Statement

#000119312511347162 Filed on December 20, 2011

View on sec.gov

Income Statement

Concept 2011 Q4 2010 Q4
Revenue $4.624B $4.067B
YoY Change 13.7% 0.79%
Cost Of Revenue $3.029B $2.433B
YoY Change 24.52% 5.47%
Gross Profit $1.595B $1.634B
YoY Change -2.41% -5.46%
Gross Profit Margin 34.49% 40.18%
Selling, General & Admin $877.1M $810.1M
YoY Change 8.27% -1.77%
% of Gross Profit 55.0% 49.58%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $137.8M $118.9M
YoY Change 15.9% 1.8%
% of Gross Profit 8.64% 7.28%
Operating Expenses $877.1M $810.1M
YoY Change 8.27% -1.77%
Operating Profit $716.9M $822.9M
YoY Change -12.88% -6.35%
Interest Expense $87.20M $81.60M
YoY Change 6.86% -7.8%
% of Operating Profit 12.16% 9.92%
Other Income/Expense, Net
YoY Change
Pretax Income $629.7M $741.3M
YoY Change -15.05% -6.19%
Income Tax $209.4M $160.7M
% Of Pretax Income 33.25% 21.68%
Net Earnings $444.8M $613.9M
YoY Change -27.55% 8.56%
Net Earnings / Revenue 9.62% 15.1%
Basic Earnings Per Share $0.69 $0.96
Diluted Earnings Per Share $0.67 $0.92
COMMON SHARES
Basic Shares Outstanding 646.3M shares 642.1M shares
Diluted Shares Outstanding 665.8M shares 664.5M shares

Balance Sheet

Concept 2011 Q4 2010 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $509.0M $566.0M
YoY Change -10.07% -34.03%
Cash & Equivalents $509.0M $566.3M
Short-Term Investments
Other Short-Term Assets $373.0M $416.7M
YoY Change -10.49% -2.89%
Inventory $1.629B $1.706B
Prepaid Expenses
Receivables $1.510B $1.299B
Other Receivables $0.00 $0.00
Total Short-Term Assets $4.022B $4.017B
YoY Change 0.12% -2.69%
LONG-TERM ASSETS
Property, Plant & Equipment $3.507B $3.146B
YoY Change 11.48% 5.31%
Goodwill $8.116B $6.635B
YoY Change 22.33% -0.94%
Intangibles $4.796B $3.741B
YoY Change 28.2% -0.69%
Long-Term Investments
YoY Change
Other Assets $1.026B $840.6M
YoY Change 22.1% -14.37%
Total Long-Term Assets $17.45B $14.36B
YoY Change 21.47% -0.5%
TOTAL ASSETS
Total Short-Term Assets $4.022B $4.017B
Total Long-Term Assets $17.45B $14.36B
Total Assets $21.47B $18.38B
YoY Change 16.8% -0.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.097B $826.7M
YoY Change 32.64% 15.2%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $849.0M $1.170B
YoY Change -27.43% 163.25%
Long-Term Debt Due $1.732B $12.00M
YoY Change 14336.67% -98.02%
Total Short-Term Liabilities $5.142B $3.734B
YoY Change 37.72% 7.92%
LONG-TERM LIABILITIES
Long-Term Debt $5.248B $5.864B
YoY Change -10.51% 3.82%
Other Long-Term Liabilities $1.818B $1.931B
YoY Change -5.82% -1.33%
Total Long-Term Liabilities $7.066B $1.931B
YoY Change 265.96% -1.33%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.142B $3.734B
Total Long-Term Liabilities $7.066B $1.931B
Total Liabilities $13.58B $12.49B
YoY Change 8.71% 2.18%
SHAREHOLDERS EQUITY
Retained Earnings $9.642B $8.842B
YoY Change 9.05% 11.8%
Common Stock $1.394B $1.370B
YoY Change 1.74% 3.65%
Preferred Stock
YoY Change
Treasury Stock (at cost) $3.255B $3.300B
YoY Change -1.36% 36.38%
Treasury Stock Shares 109.7M shares 114.1M shares
Shareholders Equity $6.577B $5.640B
YoY Change
Total Liabilities & Shareholders Equity $21.47B $18.38B
YoY Change 16.8% -0.98%

Cashflow Statement

Concept 2011 Q4 2010 Q4
OPERATING ACTIVITIES
Net Income $444.8M $613.9M
YoY Change -27.55% 8.56%
Depreciation, Depletion And Amortization $137.8M $118.9M
YoY Change 15.9% 1.8%
Cash From Operating Activities $715.7M $421.9M
YoY Change 69.64% -40.74%
INVESTING ACTIVITIES
Capital Expenditures -$132.0M -$151.7M
YoY Change -12.99% 15.63%
Acquisitions
YoY Change
Other Investing Activities -$21.00M $5.500M
YoY Change -481.82% -83.43%
Cash From Investing Activities -$153.0M -$146.2M
YoY Change 4.65% 49.18%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -375.9M -425.4M
YoY Change -11.64% -13.25%
NET CHANGE
Cash From Operating Activities 715.7M 421.9M
Cash From Investing Activities -153.0M -146.2M
Cash From Financing Activities -375.9M -425.4M
Net Change In Cash 186.8M -149.7M
YoY Change -224.78% -221.12%
FREE CASH FLOW
Cash From Operating Activities $715.7M $421.9M
Capital Expenditures -$132.0M -$151.7M
Free Cash Flow $847.7M $573.6M
YoY Change 47.79% -31.97%

Facts In Submission

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<p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;margin-left:0px;">(</font><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">1</font><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">) Background</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">The accompanying Consolidated Financial Statements of General Mills, Inc. (we, us, our,</font><font style="font-family:Times New Roman;font-size:10pt;"> General Mills,</font><font style="font-family:Times New Roman;font-size:10pt;"> or the Company) have been prepared in accordance with accounting principles generally accepted in the United States 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</font><font style="font-family:Times New Roman;font-size:10pt;">, including the elimination of all intercompany transactions and any noncontrolling and redeemable interests' share of those transactions</font><font style="font-family:Times New Roman;font-size:10pt;">. Operating results for the </font><font style="font-family:Times New Roman;font-size:10pt;">quarterly and six-month periods ended</font><font style="font-family:Times New Roman;font-size:10pt;"> November 27, 2011</font><font style="font-family:Times New Roman;font-size:10pt;"> are not necessarily indicative of the results that may be expected for the fiscal year ending </font><font style="font-family:Times New Roman;font-size:10pt;">May 27, 2012</font><font style="font-family:Times New Roman;font-size:10pt;">. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">These statements 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 29, 2011. The accounting policies used in preparing these Consolidated Financial Statements are the same as those described in </font><font style="font-family:Times New Roman;font-size:10pt;">Note</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">2</font><font style="font-family:Times New Roman;font-size:10pt;"> to the Consolidated Financial Statements in that Form 10-K, </font><font style="font-family:Times New Roman;font-size:10pt;">in addition to the policy </font><font style="font-family:Times New Roman;font-size:10pt;">noted below.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;margin-left:0px;">Redeemable Interest</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">Sodiaal International (Sodiaal) holds a 49 percent redeemable interest in Yoplait S.A.S., a consolidated entity. Sodiaal has the ability to put a limited portion of its redeemable interest to us at fair value once per year up to a maximum of </font><font style="font-family:Times New Roman;font-size:10pt;">9</font><font style="font-family:Times New Roman;font-size:10pt;"> years. This put option require</font><font style="font-family:Times New Roman;font-size:10pt;">s us to classify Sodiaal's </font><font style="font-family:Times New Roman;font-size:10pt;">interest</font><font style="font-family:Times New Roman;font-size:10pt;"> as a redeemable interest</font><font style="font-family:Times New Roman;font-size:10pt;"> outside of equity on our consolidated balance sheets for as long as the put is exercisable by Sodiaal. When the put is no longer exercisable, the redeemable interest will be reclassified to noncontrolling interests on our consolidated balance sheets. We adjust the value of the redeemable i</font><font style="font-family:Times New Roman;font-size:10pt;">nterest through additional paid-</font><font style="font-family:Times New Roman;font-size:10pt;">in capital on our consolidated balance sheets quarterly to the redeemable interest's redemption value, which approximates its fair value. The significant assumptions used to estimate the redemption value include projected revenue growth and profitability from our long range plan, capital spending, depreciation and taxes, foreign currency rates, and a discount rate.</font></p>
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ComprehensiveIncomeNetOfTax
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300000 USD
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0 USD
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20700000 USD
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176100000 USD
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54500000 USD
us-gaap Other Comprehensive Income Loss Before Tax Portion Attributable To Parent
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1600000 USD
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2000000 USD
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18400000 USD
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20700000 USD
CY2011Q4 us-gaap Allocated Share Based Compensation Expense
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37400000 USD
CY2010Q4 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
30000000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
83900000 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
86600000 USD
CY2011Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
67015500 shares
CY2011Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
45328300 shares
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
67547300 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period
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4069000 shares
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
26.82
CY2011Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
37.29
CY2011Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
24.39
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
32.29
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
197300 shares
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202100000 USD
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22 months
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
62700000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
134000000 USD
us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
EmployeeServiceShareBasedCompensationCashReceivedFromExerciseOfStockOptions
185300000 USD
us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
EmployeeServiceShareBasedCompensationCashReceivedFromExerciseOfStockOptions
99200000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsMethodUsed
We estimate the fair value of each 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 on page 65 in our Annual Report on Form 10-K for the fiscal year ended May 29, 2011.
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
5.88
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
4.12
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.029 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.029 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedTerm
8.500 years
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedTerm
8.500 years
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.176 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.185 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.033 pure
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0.030 pure
CY2011Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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27.59
CY2011Q4 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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6000000 shares
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
25.05
CY2011Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm1
4.80 years
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Remaining Contractual Term
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm
3.33 years
CY2011Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
712900000 USD
CY2011Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
597600000 USD
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
89100000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
77700000 USD
CY2011Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
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646300000 shares
CY2011Q4 gis Amountof Dilutive Securities Stock Options
AmountofDilutiveSecuritiesStockOptions
14800000 shares
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AmountOfDilutiveSecuritiesRestrictedStockUnits
4700000 shares
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WeightedAverageNumberOfSharesOutstandingBasic
642100000 shares
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AmountofDilutiveSecuritiesStockOptions
17100000 shares
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AmountOfDilutiveSecuritiesRestrictedStockUnits
5300000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
647100000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
644700000 shares
gis Amountof Dilutive Securities Stock Options
AmountofDilutiveSecuritiesStockOptions
14600000 shares
gis Amountof Dilutive Securities Stock Options
AmountofDilutiveSecuritiesStockOptions
17400000 shares
gis Amount Of Dilutive Securities Restricted Stock Units
AmountOfDilutiveSecuritiesRestrictedStockUnits
4600000 shares
gis Amount Of Dilutive Securities Restricted Stock Units
AmountOfDilutiveSecuritiesRestrictedStockUnits
5400000 shares
CY2011Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
665800000 shares
CY2010Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
664500000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
666300000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
667500000 shares
CY2010Q4 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
5200000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6700000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
5100000 shares
CY2011Q4 us-gaap Treasury Stock Shares Acquired
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2700000 shares
CY2011Q4 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
100900000 USD
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
5700000 shares
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
210800000 USD
CY2010Q4 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
4800000 shares
CY2010Q4 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
175200000 USD
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
26200000 shares
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
963600000 USD
CY2011Q3 us-gaap Noncash Or Part Noncash Acquisition Debt Assumed1
NoncashOrPartNoncashAcquisitionDebtAssumed1
261300000 USD
us-gaap Interest Paid Net
InterestPaidNet
162000000 USD
us-gaap Interest Paid Net
InterestPaidNet
161100000 USD
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
344300000 USD
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
355100000 USD
gis Number Of Segments
NumberOfSegments
3 segment

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