General Mills (GIS)

 

Basis of Presentation Our Consolidated Financial Statements include the accounts of General Mills, Inc. and all subsidiaries in which we have a controlling financial interest. Intercompany transactions and accounts are eliminated in consolidation.

 

Our fiscal year ends on the last Sunday in May. Fiscal years 2008, 2007, and 2006 each consisted of 52 weeks. Financial results for our International segment, with the exception of Canada, its export operations, and its United States and Latin American headquarters are reported as of and for the 12 calendar months ended April 30.

 

Reclassifications During fiscal 2007, we made certain changes in our reporting of financial information. The effects of these reclassifications on our historical Consolidated Financial Statements are reflected herein and had no impact on our consolidated net earnings or earnings per share (EPS).

 

We made a change in accounting principle to classify shipping costs associated with the distribution of finished products to our customers as cost of sales. We previously recorded these costs in selling, general, and administrative (SG&A) expense. We made this change in principle because we believe the classification of these shipping costs in cost of sales better reflects the cost of producing and distributing our products and aligns our external financial reporting with the results we use internally to evaluate segment operating performance. The impact of this change in principle was an increase to cost of sales of $474.4 million in fiscal 2006, and a corresponding decrease to SG&A expense in the same period.

 

We shifted sales responsibility for several customers from our Bakeries and Foodservice segment to our U.S. Retail segment. Net sales and segment operating profit for these two segments have been adjusted to report the results from shifted businesses within the appropriate segment. The impact of this shift was a decrease in net sales of our Bakeries and Foodservice segment and an increase in net sales of our U.S. Retail segment of $55.0 million in fiscal 2006. The impact of this shift was a decrease of Bakeries and Foodservice segment operating profit and an increase of U.S. Retail segment operating profit of $22.1 million in fiscal 2006.

 

We also reclassified (i) certain trade-related costs and customer allowances as cost of sales or SG&A expense (previously recorded as reductions of net sales), (ii) certain liabilities, including trade and consumer promotion accruals, from accounts payable to other current liabilities, (iii) certain distributions from joint ventures as operating cash flows (previously reported as investing cash flows), (iv) royalties from a joint venture to after-tax earnings from joint ventures (previously recorded as a reduction of SG&A expense), (v) certain receivables, including accrued interest, derivatives, and other miscellaneous receivables that were historically included in receivables, to other current assets, and (vi) valuation allowances related to deferred income tax assets between current and noncurrent classification. These reclassifications were not material individually or in the aggregate. We have reclassified previously reported Consolidated Balance Sheets, Consolidated Statements of Earnings, and Consolidated Statements of Cash Flows to conform to the fiscal 2007 presentation.

 

In addition, certain reclassifications to our previously reported financial information have been made to conform to the current period presentation.

 

Change in Reporting Period In fiscal 2007, we changed the reporting period for our Häagen-Dazs joint ventures in Asia to include results through March 31. In previous years, we included results for the twelve months ended April 30. Accordingly, fiscal 2007 results include only 11 months of results from these joint ventures compared to 12 months in fiscal 2008 and fiscal 2006. The impact of this change was not material to our results of operations, thus we did not restate prior period financial statements for comparability.

 

 

Basis of
Presentation Our Consolidated Financial
Statements include the accounts of General Mills, Inc. and all
subsidiaries in which we have a controlling financial interest.
Intercompany transactions and accounts are eliminated in
consolidation.

 

Our fiscal year ends on the last Sunday in May. Fiscal years
2008, 2007, and 2006 each consisted of 52 weeks. Financial
results for our International segment, with the exception of
Canada, its export operations, and its United States and Latin
American headquarters are reported as of and for the 12 calendar
months ended April 30.

 

Reclassifications During
fiscal 2007, we made certain changes in our reporting of
financial information. The effects of these reclassifications on
our historical Consolidated Financial Statements are reflected
herein and had no impact on our consolidated net earnings or
earnings per share (EPS).

 

We made a change in accounting principle to classify shipping
costs associated with the distribution of finished products to
our customers as cost of sales. We previously recorded these
costs in selling, general, and administrative (SG&A)
expense. We made this change in principle because we believe the
classification of these shipping costs in cost of sales better
reflects the cost of producing and distributing our products and
aligns our external financial reporting with the results we use
internally to evaluate segment operating performance. The impact
of this change in principle was an increase to cost of sales of
$474.4 million in fiscal 2006, and a corresponding decrease
to SG&A expense in the same period.

 

We shifted sales responsibility for several customers from our
Bakeries and Foodservice segment to our U.S. Retail
segment. Net sales and segment operating profit for these two
segments have been adjusted to report the results from shifted
businesses within the appropriate segment. The impact of this
shift was a decrease in net sales of our Bakeries and
Foodservice segment and an increase in net sales of our
U.S. Retail segment of $55.0 million in fiscal 2006.
The impact of this shift was a decrease of Bakeries and
Foodservice segment operating profit and an increase of
U.S. Retail segment operating profit of $22.1 million
in fiscal 2006.

 

We also reclassified (i) certain trade-related costs and
customer allowances as cost of sales or SG&A expense
(previously recorded as reductions of net sales),
(ii) certain liabilities, including trade and consumer
promotion accruals, from accounts payable to other current
liabilities, (iii) certain distributions from joint
ventures as operating cash flows (previously reported as
investing cash flows), (iv) royalties from a joint venture
to after-tax earnings from joint ventures (previously recorded
as a reduction of SG&A expense), (v) certain
receivables, including accrued interest, derivatives, and other
miscellaneous receivables that were historically included in
receivables, to other current assets, and (vi) valuation
allowances related to deferred income tax assets between current
and noncurrent classification. These reclassifications were not
material individually or in the aggregate. We have reclassified
previously reported Consolidated Balance Sheets, Consolidated
Statements of Earnings, and Consolidated Statements of Cash
Flows to conform to the fiscal 2007 presentation.

 

In addition, certain reclassifications to our previously
reported financial information have been made to conform to the
current period presentation.

 

Change in Reporting
Period In fiscal 2007, we changed the
reporting period for our Häagen-Dazs joint ventures in Asia
to include results through March 31. In previous years, we
included results for the twelve months ended April 30.
Accordingly, fiscal 2007 results include only 11 months of
results from these joint ventures compared to 12 months in
fiscal 2008 and fiscal 2006. The impact of this change was not
material to our results of operations, thus we did not restate
prior period financial statements for comparability.