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These excerpts taken from the GIS 10-K filed Jul 11, 2008. FISCAL
2008 CONSOLIDATED BALANCE SHEET ANALYSIS
Cash and cash equivalents increased $243.9 million
from fiscal 2007, as discussed in the “Liquidity”
section below.
Receivables increased $128.7 million from fiscal
2007, mainly driven by higher international sales levels and
foreign exchange translation. The allowance for doubtful
accounts was unchanged from fiscal 2007.
Inventories increased $193.4 million from fiscal
2007 due to an increase in the prices and levels of grain
inventories, as well as a higher level of finished goods. These
increases were partially offset by an increase in the reserve
for the excess of first in, first out (FIFO) inventory costs
over last in, first out (LIFO) inventory costs of
$47.7 million.
Prepaid expenses and other current assets increased
$67.5 million, as derivative and other receivables
increased $91.3 million, partially offset by a
$13.2 million decrease in interest rate swap receivables.
Land, buildings, and equipment increased
$94.2 million, as capital expenditures of
$522.0 million were partially offset by depreciation
expense of $455.1 million, including accelerated
depreciation charges against long-lived assets related to
restructured facilities in Trenton, Ontario and Poplar,
Wisconsin. In addition, our Lanus, Argentina plant was destroyed
by fire and we sold facilities in Allentown, Pennsylvania and
Vallejo, California in fiscal 2008.
Goodwill and other intangible assets increased
$33.9 million from fiscal 2007 as increases from foreign
currency translation of $170.5 million and the finalization
of purchase accounting for the Saxby Bros. Limited and Uncle
Tobys acquisitions of $15.3 million were partially offset
by a $151.9 million decrease due to the adoption of
Financial Accounting Standards Board (FASB) Interpretation No.
(FIN) 48, “Accounting for Uncertainty in Income
Taxes—an Interpretation of FASB Statement
No. 109” (FIN 48).
Other assets increased $163.5 million from fiscal
2007, driven by a $91.6 million increase in our prepaid
pension asset following our annual update of assumptions and
fiscal 2008 asset performance, and a $92.1 million increase
in interest rate derivative receivables resulting from a
decrease in interest rates.
Accounts payable increased $159.4 million to
$937.3 million in fiscal 2008 from higher vendor payables
associated with increases in inventories and payables for
construction in progress, as well as foreign exchange
translation.
Long-term debt, including current portion, and notes
payable together increased $793.4 million from fiscal
2007 due to borrowings utilized for the repurchase of
$843.0 million of
Series B-1
limited membership interests in GMC.
The current and noncurrent portions of deferred income taxes
increased $117.1 million to $1,483.0 million due
to increases in our pension asset and the beneficial tax
treatment for certain inventories and investments, partially
offset by increases in our deferred compensation deferred tax
asset. We also incurred $98.1 million of deferred income
tax expense in fiscal 2008.
Other current liabilities decreased $839.0 million
to $1,239.8 million, reflecting the adoption of
FIN 48, which required us to reclassify $810.6 million
of accrued taxes and related interest from current to noncurrent
based on the expected timing of any required future payments.
Other liabilities increased $694.0 million, driven
by increases to accrued taxes of $628.6 million from the
adoption of FIN 48 and increases in interest rate swap
liabilities of $66.6 million.
Our minority interests decreased by $896.5 million
mainly as a result of our repurchase of the
Series B-1
limited membership interests in GMC and the preferred stock of
General Mills Capital, Inc., net of proceeds from the sale of
additional Class A interests in GMC.
Retained earnings increased $765.4 million,
reflecting fiscal 2008 net earnings of
$1,294.7 million less dividends of $529.7 million.
Treasury stock decreased $4,539.6 million due to the
retirement of $5,080.8 million of treasury stock and a
$581.8 million decrease related to the settlement of a
forward purchase contract
Table of Contents
with Lehman Brothers, offset by share repurchases of
$1,384.6 million. Additional paid in capital
decreased $4,692.2 million due to a
$5,068.3 million decrease from the treasury stock
retirement, offset by increases of $168.2 million related
to the Lehman Brothers contract and $133.2 million related
to stock compensation expense recognized in fiscal 2008
earnings. Accumulated other comprehensive income (loss)
increased by $296.4 million after-tax, driven by
favorable foreign exchange translation of $246.3 million.
FISCAL 2008 CONSOLIDATED BALANCE SHEET ANALYSIS Cash and cash equivalents increased $243.9 million from fiscal 2007, as discussed in the “Liquidity” section below. Receivables increased $128.7 million from fiscal 2007, mainly driven by higher international sales levels and foreign exchange translation. The allowance for doubtful accounts was unchanged from fiscal 2007. Inventories increased $193.4 million from fiscal 2007 due to an increase in the prices and levels of grain inventories, as well as a higher level of finished goods. These increases were partially offset by an increase in the reserve for the excess of first in, first out (FIFO) inventory costs over last in, first out (LIFO) inventory costs of $47.7 million. Prepaid expenses and other current assets increased $67.5 million, as derivative and other receivables increased $91.3 million, partially offset by a $13.2 million decrease in interest rate swap receivables. Land, buildings, and equipment increased $94.2 million, as capital expenditures of $522.0 million were partially offset by depreciation expense of $455.1 million, including accelerated depreciation charges against long-lived assets related to restructured facilities in Trenton, Ontario and Poplar, Wisconsin. In addition, our Lanus, Argentina plant was destroyed by fire and we sold facilities in Allentown, Pennsylvania and Vallejo, California in fiscal 2008. Goodwill and other intangible assets increased $33.9 million from fiscal 2007 as increases from foreign currency translation of $170.5 million and the finalization of purchase accounting for the Saxby Bros. Limited and Uncle Tobys acquisitions of $15.3 million were partially offset by a $151.9 million decrease due to the adoption of Financial Accounting Standards Board (FASB) Interpretation No. (FIN) 48, “Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109” (FIN 48). Other assets increased $163.5 million from fiscal 2007, driven by a $91.6 million increase in our prepaid pension asset following our annual update of assumptions and fiscal 2008 asset performance, and a $92.1 million increase in interest rate derivative receivables resulting from a decrease in interest rates. Accounts payable increased $159.4 million to $937.3 million in fiscal 2008 from higher vendor payables associated with increases in inventories and payables for construction in progress, as well as foreign exchange translation. Long-term debt, including current portion, and notes payable together increased $793.4 million from fiscal 2007 due to borrowings utilized for the repurchase of $843.0 million of Series B-1 limited membership interests in GMC. The current and noncurrent portions of deferred income taxes increased $117.1 million to $1,483.0 million due to increases in our pension asset and the beneficial tax treatment for certain inventories and investments, partially offset by increases in our deferred compensation deferred tax asset. We also incurred $98.1 million of deferred income tax expense in fiscal 2008. Other current liabilities decreased $839.0 million to $1,239.8 million, reflecting the adoption of FIN 48, which required us to reclassify $810.6 million of accrued taxes and related interest from current to noncurrent based on the expected timing of any required future payments. Other liabilities increased $694.0 million, driven by increases to accrued taxes of $628.6 million from the adoption of FIN 48 and increases in interest rate swap liabilities of $66.6 million. Our minority interests decreased by $896.5 million mainly as a result of our repurchase of the Series B-1 limited membership interests in GMC and the preferred stock of General Mills Capital, Inc., net of proceeds from the sale of additional Class A interests in GMC. Retained earnings increased $765.4 million, reflecting fiscal 2008 net earnings of $1,294.7 million less dividends of $529.7 million. Treasury stock decreased $4,539.6 million due to the retirement of $5,080.8 million of treasury stock and a $581.8 million decrease related to the settlement of a forward purchase contract
Table of Contentswith Lehman Brothers, offset by share repurchases of $1,384.6 million. Additional paid in capital decreased $4,692.2 million due to a $5,068.3 million decrease from the treasury stock retirement, offset by increases of $168.2 million related to the Lehman Brothers contract and $133.2 million related to stock compensation expense recognized in fiscal 2008 earnings. Accumulated other comprehensive income (loss) increased by $296.4 million after-tax, driven by favorable foreign exchange translation of $246.3 million. | EXCERPTS ON THIS PAGE:
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