INVESTMENTS IN JOINT VENTURES

In the first quarter of fiscal 2015, the Company, Cargill, and CHS, completed the formation of Ardent Mills. In connection with the formation, we contributed all of the assets of ConAgra Mills, our milling operations, including $49.0 million of cash, to Ardent Mills, we received a 44% ownership interest in Ardent Mills, and Ardent Mills distributed $391.4 million in cash to us as a return of capital. The contribution of the assets of ConAgra Mills in exchange for a non-controlling interest in the newly formed joint venture was required to be accounted for at fair value, and accordingly, we recognized a gain of $625.6 million ($379.6 million after-tax) in fiscal 2015 in income from discontinued operations, to reflect the excess of the fair value of our interest over its carrying value at the time of the transfer. As part of the formation of Ardent Mills, in the fourth quarter of fiscal 2014, pursuant to an agreement with the U.S. Department of Justice, we sold three flour milling facilities to Miller Milling Company LLC for $163.0 million. We received the cash proceeds from the sale of these flour milling facilities in the first quarter of fiscal 2015. In the first quarter of fiscal 2015, we used the net cash proceeds from the Ardent Mills transaction to repay debt. The operating results of our legacy milling business, including the disposition of three mills aforementioned, are included as discontinued operations within our Consolidated Statement of Operations.

We recognized the 44% ownership interest in Ardent Mills at fair value, as of the date of the formation of the joint venture. We now recognize our proportionate share of the earnings of Ardent Mills under the equity method of accounting within results of continuing operations. Due to differences in fiscal reporting periods, we recognized the equity method earnings on a lag of approximately one month; and as a result, we recognized only 11 months of earnings from Ardent Mills in fiscal 2015. The carrying value of our Ardent Mills equity method investment at the end of fiscal 2017 and 2016 was $714.7 million and $732.8 million, respectively.

The total carrying value of our equity method investments at the end of fiscal 2017 and 2016 was $741.3 million and $755.7 million, respectively. These amounts are included in Other assets.

In fiscal 2017, we had purchases from our equity method investees of $41.8 million. Total dividends received from equity method investments in fiscal 2017 were $68.2 million.

In fiscal 2016, we had sales to and purchases from our equity method investees of $1.6 million and $61.2 million, respectively. Total dividends received from equity method investments in fiscal 2016 were $40.4 million.

In fiscal 2015, we had sales to and purchases from our equity method investees of $1.7 million and $57.3 million, respectively. Total dividends received from equity method investments in fiscal 2015 were $79.3 million.

We entered into transition services agreements in connection with the Ardent Mills formation and recognized $0.1 million, $9.7 million, and $14.1 million of income for the performance of transition services during fiscal 2017, 2016, and 2015, respectively, classified within Selling, general and administrative expenses.

Summarized combined financial information for our equity method investments on a 100% basis is as follows:



	2017		2016		2015
Net Sales:
Ardent Mills	$	3,180.0	$	3,395.3	$	3,299.2
Others	177.7		167.2		167.3
Total net sales	$	3,357.7	$	3,562.5	$	3,466.5
Gross margin:
Ardent Mills	$	340.3	$	339.2	$	365.3
Others	34.6		32.8		33.3
Total gross margin	$	374.9	$	372.0	$	398.6
Earnings after income taxes:
Ardent Mills	$	152.0	$	142.9	$	173.5
Others	10.1		6.4		6.1
Total earnings after income taxes	$	162.1	$	149.3	$	179.6



	May 28, 2017		May 29, 2016
Ardent Mills:
Current assets	$	937.2	$	988.4
Noncurrent assets	1,694.2		1,695.3
Current liabilities	388.9		507.7
Noncurrent liabilities	518.0		545.0
Others:
Current assets	$	75.5	$	80.8
Noncurrent assets	12.2		10.5
Current liabilities	44.5		51.0
Noncurrent liabilities	—		—