Redeemable and Noncontrolling Interests

12 Months Ended

May 28, 2023

Redeemable and Noncontrolling Interests [Abstract]

Redeemable and Noncontrolling Interests

NOTE 10. REDEEMABLE AND NONCONTROLLING INTERESTS

Our principal noncontrolling interest relates to our General Mills Cereals, LLC (GMC) subsidiar y.

The holder of the GMC Class A Interests receives quarterly preferred distributions from available net income based on the application

of a floating preferred return rate to the holder’s capital account balance established in the most recent mark-to-market valuation

(currently $

251.5

 million). The floating preferred return rate on GMC’s Class A interests is the sum of the

three-month Term SOFR

plus

186

 basis points. The preferred return rate is adjusted every

three years

 through a negotiated agreement with the Class

A

Interest

holder or through a remarketing auction.

During the third quarter of fiscal 2022, we completed the sale of our interests in Yoplait SAS, Yoplait Marques SNC and Liberté

Marques Sàrl to Sodiaal in exchange for Sodiaal’s interest in our Canadian yogurt business, a modified agreement for the use of

Yoplait

 and

Liberté

brands in the United States and Canada, and cash. Please see Note 3 to the Consolidated Financial Statements.

Up to the date of the divestiture, Sodiaal held the remaining interests in each of the entities. On the acquisition date, we recorded the

fair value of Sodiaal’s

49

 percent euro-denominated interest in Yoplait SAS as a redeemable interest on our Consolidated Balance

Sheets. Sodiaal had the right to put all or a portion of its redeemable interest to us at fair value until the divestiture closed in the third

quarter of fiscal 2022. In connection with the divestiture, cumulative adjustments made to the redeemable interest related to the fair

value put feature were reversed against additional paid-in capital, where changes in the redemption amount were historically recorded,

and the resulting carrying value of the noncontrolling interests were included in the calculation of the gain on divestiture.

We paid dividends of $

105.1

 million in fiscal 2022 and $

40.3

 million in fiscal 2021 to Sodiaal under the terms of the Yoplait SAS,

Yoplait Marques SNC, and Liberté Marques Sàrl shareholder agreements.

A subsidiary of Yoplait SAS had an exclusive milk supply agreement for its European operations with Sodiaal through November 28,

2021. Net purchases totaled $

99.5

 million for the six-month period ended November 28, 2021.

For financial reporting purposes, the assets, liabilities, results of operations, and cash flows of our non-wholly owned consolidated

subsidiaries are included in our Consolidated Financial Statements. The third-party investor’s share of the net earnings of these

subsidiaries is reflected in net earnings attributable to redeemable and noncontrolling interests in our Consolidated Statements of

Earnings. 

Our noncontrolling interests contain restrictive covenants. As of May 28, 2023, we were in compliance with all of these covenants.