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Noncontrolling Interests
3 Months Ended
Aug. 25, 2024
Noncontrolling Interests [Abstract]  
Noncontrolling Interests
 
(8) Noncontrolling Interests
The
 
third-party
 
holder
 
of
 
the
 
General
 
Mills
 
Cereals,
 
LLC
 
(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).
 
On
 
June
 
1,
 
2024,
 
the
 
floating
 
preferred
 
return
 
rate
 
on
 
GMC’s
Class A Interests was reset to the sum of the
three-month Term SOFR
 
plus
261
 
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.
Our noncontrolling interests contain restrictive covenants. As of August 25, 2024, we were in compliance with all of these covenants.