2012 Q1 Form 10-Q Financial Statement

#000119312512125489 Filed on March 21, 2012

View on sec.gov

Income Statement

Concept 2012 Q1 2011 Q2 2011 Q1
Revenue $4.120B $3.634B $3.646B
YoY Change 13.0% 2.98% 1.59%
Cost Of Revenue $2.613B $2.270B $2.215B
YoY Change 17.93% 0.53% -0.63%
Gross Profit $1.507B $1.364B $1.431B
YoY Change 5.35% 7.32% 5.22%
Gross Profit Margin 36.59% 37.54% 39.24%
Selling, General & Admin $838.7M $828.8M $790.2M
YoY Change 6.14% 3.94% -0.21%
% of Gross Profit 55.64% 60.74% 55.23%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $135.5M $118.1M $124.3M
YoY Change 9.01% 1.11% 10.59%
% of Gross Profit 8.99% 8.66% 8.69%
Operating Expenses $838.7M $828.8M $790.2M
YoY Change 6.14% 3.94% -0.21%
Operating Profit $668.6M $535.6M $654.8M
YoY Change 2.11% 13.02% 16.6%
Interest Expense $96.00M -$89.40M $85.00M
YoY Change 12.94% 2.88% -9.77%
% of Operating Profit 14.36% -16.69% 12.98%
Other Income/Expense, Net
YoY Change
Pretax Income $572.6M $447.0M $569.8M
YoY Change 0.49% 29.23% 21.91%
Income Tax $187.3M $155.7M $181.7M
% Of Pretax Income 32.71% 34.83% 31.89%
Net Earnings $391.5M $320.2M $392.1M
YoY Change -0.15% 51.11% 17.92%
Net Earnings / Revenue 9.5% 8.81% 10.75%
Basic Earnings Per Share $0.61 $0.50 $0.61
Diluted Earnings Per Share $0.58 $0.48 $0.59
COMMON SHARES
Basic Shares Outstanding 647.9M shares 638.9M shares
Diluted Shares Outstanding 667.3M shares 660.1M shares

Balance Sheet

Concept 2012 Q1 2011 Q2 2011 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $485.0M $620.0M $540.0M
YoY Change -10.19% -7.88% -21.85%
Cash & Equivalents $485.0M $619.6M $540.3M
Short-Term Investments
Other Short-Term Assets $386.0M $483.5M $417.7M
YoY Change -7.59% 27.74% 29.36%
Inventory $1.528B $1.609B $1.668B
Prepaid Expenses $161.0M
Receivables $1.437B $1.162B $1.186B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.836B $3.902B $3.843B
YoY Change -0.17% 12.13% 4.51%
LONG-TERM ASSETS
Property, Plant & Equipment $3.550B $3.346B $3.180B
YoY Change 11.62% 6.98% 5.86%
Goodwill $8.205B $6.751B $6.703B
YoY Change 22.41% 2.4% 0.86%
Intangibles $4.728B $3.813B $3.803B
YoY Change 24.34% 2.65% 1.65%
Long-Term Investments $519.1M
YoY Change 30.39%
Other Assets $1.119B $862.5M $752.5M
YoY Change 48.76% 12.98% -34.46%
Total Long-Term Assets $17.60B $14.77B $14.44B
YoY Change 21.91% 4.04% -0.69%
TOTAL ASSETS
Total Short-Term Assets $3.836B $3.902B $3.843B
Total Long-Term Assets $17.60B $14.77B $14.44B
Total Assets $21.44B $18.67B $18.28B
YoY Change 17.27% 5.63% 0.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.012B $995.1M $830.1M
YoY Change 21.9% 17.14% 20.22%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $690.8M $311.3M $974.5M
YoY Change -29.11% -70.36% 67.7%
Long-Term Debt Due $749.1M $1.031B $1.031B
YoY Change -27.34% 863.83% 863.55%
Total Short-Term Liabilities $3.849B $3.659B $4.511B
YoY Change -14.68% -2.92% 51.06%
LONG-TERM LIABILITIES
Long-Term Debt $6.195B $5.543B $4.843B
YoY Change 27.91% 5.19% -14.62%
Other Long-Term Liabilities $1.775B $1.733B $1.826B
YoY Change -2.82% -18.2% -5.85%
Total Long-Term Liabilities $7.970B $7.276B $1.826B
YoY Change 336.38% 243.4% -5.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.849B $3.659B $4.511B
Total Long-Term Liabilities $7.970B $7.276B $1.826B
Total Liabilities $13.19B $12.06B $12.17B
YoY Change 8.36% 0.26% 3.66%
SHAREHOLDERS EQUITY
Retained Earnings $9.834B $9.191B $9.053B
YoY Change 8.62% 13.16% 12.1%
Common Stock $1.413B $1.395B $1.376B
YoY Change 2.69% 0.92% 1.77%
Preferred Stock
YoY Change
Treasury Stock (at cost) $3.213B $3.210B $3.401B
YoY Change -5.51% 22.76% 45.56%
Treasury Stock Shares 107.4M shares 109.8M shares 116.3M shares
Shareholders Equity $6.922B $6.366B $5.866B
YoY Change
Total Liabilities & Shareholders Equity $21.44B $18.67B $18.28B
YoY Change 17.27% 5.63% 0.36%

Cashflow Statement

Concept 2012 Q1 2011 Q2 2011 Q1
OPERATING ACTIVITIES
Net Income $391.5M $320.2M $392.1M
YoY Change -0.15% 51.11% 17.92%
Depreciation, Depletion And Amortization $135.5M $118.1M $124.3M
YoY Change 9.01% 1.11% 10.59%
Cash From Operating Activities $505.1M $283.0M $648.6M
YoY Change -22.12% -54.57% 13.57%
INVESTING ACTIVITIES
Capital Expenditures -$159.1M -$225.4M -$139.1M
YoY Change 14.38% -2.42% -13.82%
Acquisitions
YoY Change
Other Investing Activities $100.0K -$22.80M -$61.40M
YoY Change -100.16% 314.55% -43.25%
Cash From Investing Activities -$159.0M -$248.2M -$200.5M
YoY Change -20.7% 4.95% -25.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -377.5M 31.10M -489.3M
YoY Change -22.85% -108.42% 10.38%
NET CHANGE
Cash From Operating Activities 505.1M 283.0M 648.6M
Cash From Investing Activities -159.0M -248.2M -200.5M
Cash From Financing Activities -377.5M 31.10M -489.3M
Net Change In Cash -31.40M 65.90M -41.20M
YoY Change -23.79% 285.38% -70.94%
FREE CASH FLOW
Cash From Operating Activities $505.1M $283.0M $648.6M
Capital Expenditures -$159.1M -$225.4M -$139.1M
Free Cash Flow $664.2M $508.4M $787.7M
YoY Change -15.68% -40.47% 7.54%

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;">(1) 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, General Mills, 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, including the elimination of all intercompany transactions and any noncontrolling and redeemable interests' share of those transactions. Operating results for the quarterly and nine-month periods ended February 26, 2012 are not necessarily indicative of the results that may be expected for the fiscal year ending May 27, 2012. </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 Note 2 to the Consolidated Financial Statements in that Form 10-K, in addition to the policy 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 requires us to classify Sodiaal's interest as a redeemable interest 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 interest through additional paid-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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2100000 USD
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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
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4.12
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.029 pure
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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
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4069000 shares
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26.82
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
37.29
CY2012Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
24.26
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30.14
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
62214000 shares
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40816700 shares
CY2012Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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27.86
CY2012Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
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25.20
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SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm1
4.85 years
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Remaining Contractual Term
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3.35 years
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodTotalFairValue
86400000 USD
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gis Amountof Dilutive Securities Stock Options
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14500000 shares
gis Amountof Dilutive Securities Stock Options
AmountofDilutiveSecuritiesStockOptions
16800000 shares
gis Amount Of Dilutive Securities Restricted Stock Units
AmountOfDilutiveSecuritiesRestrictedStockUnits
4600000 shares
gis Amount Of Dilutive Securities Restricted Stock Units
AmountOfDilutiveSecuritiesRestrictedStockUnits
5400000 shares
CY2012Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
667300000 shares
CY2011Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
660100000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
666500000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
665000000 shares
CY2012Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2800000 shares
CY2011Q1 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
5700000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
5200000 shares
CY2012Q1 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
2600000 shares
CY2012Q1 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
101700000 USD
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
8300000 shares
CY2011Q1 us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
5600000 shares
CY2011Q1 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
199900000 USD
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
31800000 shares
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
1163500000 USD
CY2011Q3 us-gaap Noncash Or Part Noncash Acquisition Debt Assumed1
NoncashOrPartNoncashAcquisitionDebtAssumed1
261300000 USD
us-gaap Interest Paid Net
InterestPaidNet
296600000 USD
us-gaap Interest Paid Net
InterestPaidNet
300600000 USD
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
508500000 USD
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
411600000 USD
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p style='margin-top:0pt; margin-bottom:10pt'><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;margin-left:0px;">(14) </font><font style="font-family:Times New Roman;font-size:10pt;text-decoration:underline;">Contingencies</font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;">We are party to various pending or threatened legal actions in the ordinary course of our business.&#160; In our opinion, there were no claims or litigation pending as of February 26, 2012, that were reasonably likely to have a material adverse effect on our consolidated financial position or results of operations.&#160; These matters include a class action lawsuit</font><font style="font-family:Times New Roman;font-size:10pt;"> </font><font style="font-family:Times New Roman;font-size:10pt;">filed on January 14, 2010, in the United States District Court, Central District of California, </font><font style="font-family:Times New Roman;font-size:10pt;">alleging that we made false and misleading claims about the digestive health benefits of our </font><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;">YoPlus</font><font style="font-family:Times New Roman;font-size:10pt;"> yogurt product.&#160; The </font><font style="font-family:Times New Roman;font-size:10pt;font-style:italic;">YoPlus</font><font style="font-family:Times New Roman;font-size:10pt;"> matter is scheduled&#160;to go to trial in June 2012.&#160; We believe that we have meritorious defenses against these allegations and will vigorously defend our position.&#160; As of February 26, 2012, we have not recorded a loss contingency for this matter.</font></p>
gis Number Of Segments
NumberOfSegments
3 segment

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