EX-99.2 4 a16-2041_1ex99d2.htm EXHIBIT 99.2 - UNAUDITED INTERIM FINANCIAL STATEMENTS OF GREEN GIANT

Exhibit 99.2

 

GENERAL MILLS GREEN GIANT BUSINESS

 

Abbreviated Financial Statements (Unaudited)

 

August 30, 2015 and August 24, 2014

 



 

GENERAL MILLS GREEN GIANT BUSINESS

Statements of Net Assets to be Sold (Unaudited)

(in thousands)

 

 

 

August 30,
2015

 

May 31,
2015

 

Assets:

 

 

 

 

 

Inventory

 

$

172,576

 

$

165,178

 

Land, Buildings, and Equipment, net

 

26,861

 

29,611

 

Brand Intangible Asset

 

124,200

 

124,200

 

Total assets

 

323,637

 

318,989

 

 

 

 

 

 

 

Net assets to be sold

 

$

323,637

 

$

318,989

 

 

See accompanying notes to abbreviated financial statements

 



 

GENERAL MILLS GREEN GIANT BUSINESS

Statements of Revenue and Direct Operating Expenses (Unaudited)

(in thousands)

 

 

 

Quarter Ended

 

 

 

August 30, 2015

 

August 24, 2014

 

Revenue

 

$

107,750

 

$

108,221

 

Cost of goods sold

 

97,513

 

93,818

 

Gross Margin

 

10,237

 

14,403

 

 

 

 

 

 

 

Advertising and consumer promotion expense

 

1,947

 

6,300

 

Selling, administrative, and other expense

 

9,361

 

9,183

 

Direct operating expenses in excess of revenue

 

$

(1,071

)

$

(1,080

)

 

See accompanying notes to abbreviated financial statements

 



 

GENERAL MILLS GREEN GIANT BUSINESS

Notes to Abbreviated Financial Statements (Unaudited)

August 30, 2015 and August 24, 2014

(in thousands)

 

(1)                     Description of Business

 

General Mills, Inc. (GMI) entered into an Asset Purchase Agreement (the Agreement) with B&G Foods North America Inc. (the Buyer), which provides for the sale of certain assets of GMI, pertaining to the General Mills Green Giant Business (the Green Giant Business). The sale closed on November 2, 2015.

 

The accompanying statements of net assets to be sold and the statements of revenue and direct operating expenses of the Green Giant Business were prepared for the purpose of assisting the Buyer in complying with the rules and regulations of the Securities and Exchange Commission and are not intended to be a complete presentation of the Green Giant Business’ assets, liabilities, equity, revenues, expenses, and cash flows.

 

These statements should be read in conjunction with the Financial Statements and footnotes included on Form 8-K for the fiscal year ended May 31, 2015. The accounting policies used in preparing these Financial Statements are the same as those described in Note 2 to the Financial Statements in that Form 8-K.

 

The preparation of the abbreviated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results could differ from these estimates. These financial statements include allocations and estimates that are not necessarily indicative of the costs and expenses that would have resulted if the Green Giant Business had been operated as a separate entity, or the future results of the Green Giant Business.

 

(2)                     Inventories

 

The components of inventories are as follows:

 

 

 

August 30, 2015

 

May 31, 2015

 

 

 

 

 

 

 

Raw materials

 

$

3,404

 

$

3,990

 

Finished goods

 

169,172

 

161,188

 

Inventories

 

$

172,576

 

$

165,178

 

 

(3)                     Land, Buildings and Equipment, Net

 

Land, Buildings and Equipment consist of the following:

 

 

 

August 30, 2015

 

May 31, 2015

 

 

 

 

 

 

 

Land, Buildings and Equipment, Net

 

$

76,994

 

$

81,569

 

Less accumulated depreciation

 

(50,133

)

(51,958

)

Land, Buildings and Equipment, Net

 

$

26,861

 

$

29,611

 

 

Depreciation expense at Belvidere and Irapuato assigned to the Green Giant business for the quarters ended August 30, 2015 and August 24, 2014 was $2.0 million and $2.2 million, respectively, and is included in cost of goods sold in the statements of revenue and direct operating expenses. These amounts include direct

 



 

GENERAL MILLS GREEN GIANT BUSINESS

Notes to Abbreviated Financial Statements (Unaudited)

August 30, 2015 and August 24, 2014

(in thousands)

 

depreciation expense related to the assets transferring with the sale for the quarters ended August 30, 2015 and August 24, 2014, of $0.9 million and $1.1 million, respectively.

 

(4)                     Subsequent Events

 

Subsequent events have been evaluated through December 30, 2015, the date these abbreviated financial statements were issued.