General Mills (GIS)

Unallocated Corporate Expenses

For the second quarter, unallocated corporate expenses were $26.2 million in fiscal 2008 compared to $39.5 million in fiscal 2007. The decrease is primarily due to a net gain on commodity derivatives of $15.1 million, the recognition of a previously deferred gain on the sale of a corporate investment of $10.8 million and lower compensation costs. These benefits were partially offset by $17.3 million of accelerated depreciation on long-lived assets associated with our previously announced restructuring action at our plant in Trenton, Ontario.

For the six-month period ended November 25, 2007, unallocated corporate expenses were $79.9 million, compared to $82.8 million for the same period last year. The decrease is primarily due to a net gain on commodity derivatives of $12.1 million and the recognition of a previously deferred gain on the sale of a corporate investment of $10.8 million. These were offset by $17.3 million of accelerated depreciation on long-lived assets associated with our previously announced restructuring action at our plant in Trenton, Ontario and $10.9 million of costs related to the remarketing of the Class A and Series B-1 interests in GMC.