UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

(Mark One) 

☑

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED

AUGUST 25, 2024

☐

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO 

Commission file number:

001-01185

________________

GENERAL MILLS, INC.

(Exact name of registrant as specified in its charter)

Delaware

41-0274440

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

Number One General Mills Boulevard

Minneapolis

,

Minnesota

55426

(Address of principal executive offices)

(Zip Code)

(763)

764-7600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange

on which registered

Common Stock, $.10 par value

GIS

New York Stock Exchange

0.125% Notes due 2025

GIS 25A

New York Stock Exchange

0.450% Notes due 2026

GIS 26

New York Stock Exchange

1.500% Notes due 2027

GIS 27

New York Stock Exchange

3.907% Notes due 2029

GIS 29

New York Stock Exchange

3.650% Notes due 2030

GIS 30A

New York Stock Exchange

3.850% Notes due 2034

GIS 34

New York Stock Exchange

________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days. 

Yes

☑

 No

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files).

Yes

☑

 No

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller

reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

 Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

 No

☑

Number of shares of Common Stock outstanding as of September 11, 2024:

555,158,898

 (excluding

199,454,430

 shares held in the

treasury).

3

General Mills, Inc.

Table of Contents

Page

4

5

6

7

8

19

33

34

34

34

35

36

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Consolidated Statements of Earnings

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions, Except per Share Data)

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

Net sales

$

4,848.1

$

4,904.7

Cost of sales

3,159.3

3,134.2

Selling, general, and administrative expenses

855.1

839.3

Restructuring, impairment, and other exit costs

2.2

1.2

Operating profit

831.5

930.0

Benefit plan non-service income

(13.9)

(17.0)

Interest, net

123.6

117.0

Earnings before income taxes and after-tax earnings from joint ventures

721.8

830.0

Income taxes

157.4

173.2

After-tax earnings from joint ventures

19.2

23.5

Net earnings, including earnings attributable to noncontrolling interests

583.6

680.3

Net earnings attributable to noncontrolling interests

3.7

6.8

Net earnings attributable to General Mills

$

579.9

$

673.5

Earnings per share – basic

$

1.03

$

1.15

Earnings per share – diluted

$

1.03

$

1.14

See accompanying notes to consolidated financial statements.

5

Consolidated Statements of Comprehensive Income

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

Net earnings, including earnings attributable to

 noncontrolling interests

$

583.6

$

680.3

Other comprehensive (loss) income, net of tax:

Foreign currency translation

(61.9)

(18.1)

Other fair value changes:

Hedge derivatives

(6.0)

(2.3)

Reclassification to earnings:

Hedge derivatives

-

0.2

Amortization of losses and prior service costs

11.6

9.1

Other comprehensive loss, net of tax

(56.3)

(11.1)

Total comprehensive income 

527.3

669.2

Comprehensive income attributable to noncontrolling

 interests

4.2

6.9

Comprehensive income attributable to General Mills

$

523.1

$

662.3

See accompanying notes to consolidated financial statements. 

6

Consolidated Balance Sheets

GENERAL MILLS, INC. AND SUBSIDIARIES

(In Millions, Except Par Value)

Aug. 25, 2024

May 26, 2024

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

468.1

$

418.0

Receivables

1,843.8

1,696.2

Inventories

1,996.4

1,898.2

Prepaid expenses and other current assets

505.3

568.5

Total current assets

4,813.6

4,580.9

Land, buildings, and equipment

3,776.3

3,863.9

Goodwill

14,787.7

14,750.7

Other intangible assets

6,982.8

6,979.9

Other assets

1,408.8

1,294.5

Total assets

$

31,769.2

$

31,469.9

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

3,823.4

$

3,987.8

Current portion of long-term debt

1,640.0

1,614.1

Notes payable

249.1

11.8

Other current liabilities

1,576.9

1,419.4

Total current liabilities

7,289.4

7,033.1

Long-term debt

11,431.3

11,304.2

Deferred income taxes

2,195.3

2,200.6

Other liabilities

1,326.6

1,283.5

Total liabilities

22,242.6

21,821.4

Stockholders’ equity:

Common stock,

754.6

 shares issued, $

0.10

 par value

75.5

75.5

Additional paid-in capital

1,164.6

1,227.0

Retained earnings

21,213.9

20,971.8

Common stock in treasury, at cost, shares of

198.8

 and

195.5

(10,601.9)

(10,357.9)

Accumulated other comprehensive loss

(2,576.5)

(2,519.7)

Total stockholders’ equity

9,275.6

9,396.7

Noncontrolling interests

251.0

251.8

Total equity

9,526.6

9,648.5

Total liabilities and equity

$

31,769.2

$

31,469.9

See accompanying notes to consolidated financial statements.

7

Consolidated Statements of Total Equity

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions, Except per Share Data)

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

Shares

Amount

Shares

Amount

Total equity, beginning balance

$

9,648.5

$

10,700.0

Common stock,

1

 billion shares authorized, $

0.10

 par value

754.6

75.5

754.6

75.5

Additional paid-in capital:

Beginning balance

1,227.0

1,222.4

Stock compensation plans

(5.2)

7.3

Unearned compensation related to stock unit awards

(77.1)

(79.4)

Earned compensation

19.9

35.4

Ending balance

1,164.6

1,185.7

Retained earnings:

Beginning balance

20,971.8

19,838.6

Net earnings attributable to General Mills

579.9

673.5

Cash dividends declared ($

0.60

 and $

0.59

 per share)

(337.8)

(348.5)

Ending balance

21,213.9

20,163.6

Common stock in treasury:

Beginning balance

(195.5)

(10,357.9)

(168.0)

(8,410.0)

Shares purchased, including excise tax of $

2.2

 and

 $

4.2

 million

(4.5)

(302.2)

(6.4)

(504.7)

Stock compensation plans

1.2

58.2

1.0

40.4

Ending balance

(198.8)

(10,601.9)

(173.4)

(8,874.3)

Accumulated other comprehensive loss:

Beginning balance

(2,519.7)

(2,276.9)

Comprehensive loss

(56.8)

(11.2)

Ending balance

(2,576.5)

(2,288.1)

Noncontrolling interests:

Beginning balance

251.8

250.4

Comprehensive income

4.2

6.9

Distributions to noncontrolling interest holders

(5.0)

(4.3)

Ending balance

251.0

253.0

Total equity, ending balance

$

9,526.6

$

10,515.4

See accompanying notes to consolidated financial statements.

8

Consolidated Statements of Cash Flows

GENERAL MILLS, INC. AND SUBSIDIARIES

(Unaudited) (In Millions)

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

Cash Flows - Operating Activities

Net earnings, including earnings attributable to noncontrolling interests

$

583.6

$

680.3

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

139.6

137.2

After-tax earnings from joint ventures

(19.2)

(23.5)

Distributions of earnings from joint ventures

23.1

15.8

Stock-based compensation

20.3

35.3

Deferred income taxes

16.2

(14.5)

Pension and other postretirement benefit plan contributions

(7.5)

(7.4)

Pension and other postretirement benefit plan costs

(3.2)

(5.3)

Restructuring, impairment, and other exit costs

0.2

2.4

Changes in current assets and liabilities, excluding the effects of 

 acquisitions and divestitures

(107.6)

(457.4)

Other, net

(21.3)

15.2

Net cash provided by operating activities

624.2

378.1

Cash Flows - Investing Activities

Purchases of land, buildings, and equipment

(140.3)

(141.7)

Acquisition, net of cash acquired

(7.7)

-

Proceeds from disposal of land, buildings, and equipment

0.6

-

Other, net

(0.6)

6.2

Net cash used by investing activities

(148.0)

(135.5)

Cash Flows - Financing Activities

Change in notes payable

238.0

551.8

Proceeds from common stock issued on exercised options

9.4

4.5

Purchases of common stock for treasury

(300.0)

(500.5)

Dividends paid

(337.8)

(348.5)

Distributions to noncontrolling interest holders

(5.0)

(4.3)

Other, net

(34.0)

(37.2)

Net cash used by financing activities

(429.4)

(334.2)

Effect of exchange rate changes on cash and cash equivalents

3.3

(3.0)

Increase (decrease) in cash and cash equivalents

50.1

(94.6)

Cash and cash equivalents - beginning of year

418.0

585.5

Cash and cash equivalents - end of period

$

468.1

$

490.9

Cash Flow from changes in current assets and liabilities, excluding the effects of 

 acquisitions and divestitures:

Receivables

$

(145.6)

$

(104.4)

Inventories

(95.7)

(54.3)

Prepaid expenses and other current assets

59.7

140.9

Accounts payable

(76.4)

(443.8)

Other current liabilities

150.4

4.2

Changes in current assets and liabilities

$

(107.6)

$

(457.4)

See accompanying notes to consolidated financial statements.

9

GENERAL MILLS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) Background

The accompanying Consolidated Financial Statements of General Mills, Inc. (we, us, our, General Mills, or the Company) have been

prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information

and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures

required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair

presentation have been included and are of a normal recurring nature, including the elimination of all intercompany transactions and

any noncontrolling interests’ share of those transactions. Operating results for the fiscal quarter ended August 25, 2024, are not

necessarily indicative of the results that may be expected for the fiscal year ending May 25, 2025. 

These statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual

Report on Form 10-K for the fiscal year ended May 26, 2024. The accounting policies used in preparing these Consolidated Financial

Statements are the same as those described in Note 2 to the Consolidated Financial Statements in that Form 10-K.

Certain terms used throughout this report are defined in the “Glossary” section below.

(2) Acquisition and Divestiture

During the fourth quarter of fiscal 2024, we acquired a pet food business in Europe, for a purchase price of $

434.1

 million, net of cash

acquired. During the first quarter of fiscal 2025, we paid $

7.7

 million related to a purchase price holdback after certain closing

conditions were met.

We

financed the transaction with cash on hand. We consolidated the business into our Consolidated Balance

Sheets and recorded goodwill of $

317.7

 million, an indefinite-lived brand intangible asset of $

118.4

 million and a finite-lived

customer relationship asset of $

14.2

 million. The goodwill is included in the International segment and is not deductible for tax

purposes. The pro forma effects of this acquisition were not material. We have conducted a preliminary assessment of the fair value of

the acquired assets and liabilities of the business and we are continuing our review of these items during the measurement period. If

new information is obtained about facts and circumstances that existed at the acquisition date, the acquisition accounting will be

revised to reflect the resulting adjustments to current estimates of those items. The consolidated results are reported in our

International operating segment on a one-month lag beginning in fiscal 2025.

On September 12, 2024, subsequent to the end of the first quarter of fiscal 2025, we entered into definitive agreements to sell our

North American Yogurt businesses to affiliates of Groupe Lactalis S.A. (Lactalis) and Sodiaal International (Sodiaal) for

approximately $

2.1

 billion. We expect to close these divestitures in calendar year 2025, subject to regulatory approvals and other

customary closing conditions.

(3) Restructuring, Impairment, and Other Exit Costs

In the first quarter of fiscal 2025, we did not undertake any new restructuring actions. We recorded $

2.9

 million of restructuring

charges in the first quarter of fiscal 2025 and $

9.8

 million of restructuring charges in the first quarter of fiscal 2024 related to

restructuring actions previously announced. We expect these actions to be completed by the end of fiscal 2026.

We paid net $

2.7

 million of cash in the first quarter of fiscal 2025 related to restructuring actions. We paid net $

7.4

 million of cash in

the same period of fiscal 2024.

Restructuring and impairment charges and project-related costs are recorded in our Consolidated Statements of Earnings as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Restructuring, impairment, and other exit costs

$

2.2

$

1.2

Cost of sales

0.7

8.6

Total restructuring charges

$

2.9

$

9.8

Project-related costs classified in cost of sales

$

0.1

$

0.8

10

(4) Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets are as follows:

In Millions

Aug. 25, 2024

May 26, 2024

Goodwill

$

14,787.7

$

14,750.7

Other intangible assets:

Intangible assets not subject to amortization:

Brands and other indefinite-lived intangibles

6,735.9

6,728.6

Intangible assets subject to amortization:

Customer relationships and other finite-lived intangibles

402.9

402.2

Less accumulated amortization

(156.0)

(150.9)

Intangible assets subject to amortization, net

246.9

251.3

Other intangible assets

6,982.8

6,979.9

Total

$

21,770.5

$

21,730.6

Based on the carrying value of finite-lived intangible assets as of August 25, 2024, annual amortization expense for each of the next

five fiscal years is estimated to be approximately $

20

 million.

The changes in the carrying amount of goodwill during the first quarter of fiscal 2025 were as follows:

In Millions

North

America

Retail

North

America

Pet

North

America

Foodservice

International

(a)

Corporate

and Joint

Ventures

Total

Balance as of May 26, 2024

$

6,541.9

$

6,062.8

$

805.5

$

917.1

$

423.4

$

14,750.7

Other activity, primarily 

 foreign currency translation

1.4

-

-

23.0

12.6

37.0

Balance as of Aug. 25, 2024

$

6,543.3

$

6,062.8

$

805.5

$

940.1

$

436.0

$

14,787.7

(a)

The carrying amounts of goodwill within the International segment as of May 26, 2024, and August 25, 2024, were net of

accumulated impairment losses of $

117.1

 million.

The changes in the carrying amount of other intangible assets during the first quarter of fiscal 2025 were as follows:

In Millions

Total

Balance as of May 26, 2024

$

6,979.9

Foreign currency translation, net of amortization

2.9

Balance as of Aug. 25, 2024

$

6,982.8

Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of

fiscal 2024. As a result of lower future profitability projections for our Latin America reporting unit, we determined that the fair value

of the reporting unit was less than its book value and recorded a $

117.1

 million non-cash goodwill impairment charge. In addition,

during the fourth quarter of fiscal 2024, we executed our fiscal 2025 planning process and preliminary long-range planning process,

which resulted in lower future sales and profitability projections for the businesses supporting our

Top Chews

,

True Chews

, and

EPIC

brand intangible assets. As a result of this triggering event, we performed an interim impairment assessment of these assets as of May

26, 2024, and determined that the fair value of these brand intangible assets no longer exceeded the carrying values of the respective

assets, resulting in $

103.1

 million of non-cash impairment charges. We recorded impairment charges in restructuring, impairment, and

other exit costs in our Consolidated Statements of Earnings. Our estimates of the fair values were determined based on a discounted

cash flow model using inputs which included our long-range cash flow projections for the businesses, royalty rates, weighted -average

cost of capital rates, and tax rates. These fair values are Level 3 assets in the fair value hierarchy.

All other intangible asset fair values were substantially in excess of the carrying values, except for the

Uncle Toby’s

 brand intangible

asset. In addition, while having significant coverage as of our fiscal 2024 assessment date, the

Progresso

,

Nudges

, and

True Chews

brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.

11

(5) Inventories

The components of inventories were as follows:

In Millions

Aug. 25, 2024

May 26, 2024

Finished goods

$

1,975.1

$

1,827.7

Raw materials and packaging

488.4

500.5

Grain

79.3

111.1

Excess of FIFO over LIFO cost

(546.4)

(541.1)

Total

$

1,996.4

$

1,898.2

(6) Risk Management Activities 

Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives

to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean),

dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty

with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a

combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options

and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as

close as possible to or below our planned cost.

We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve

hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded

currently in cost of sales in our Consolidated Statements of Earnings.

Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our

objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of

measuring segment operating performance, these gains and losses are reported in unallocated corporate items outside of segment

operating results until such time that the exposure we are managing affects earnings. At that time, we reclassify the gain or loss from

unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the

derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items. 

Unallocated corporate items for the quarters ended August 25, 2024, and August 27, 2023, included:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Net (loss) gain on mark-to-market valuation of certain 

 commodity positions

$

(37.7)

$

28.4

Net loss on commodity positions reclassified from 

 unallocated corporate items to segment operating profit

17.2

3.2

Net mark-to-market revaluation of certain grain inventories

(8.3)

13.3

Net mark-to-market valuation of certain commodity 

 positions recognized in unallocated corporate items

$

(28.8)

$

44.9

As of August 25, 2024, the net notional value of commodity derivatives was $

233.4

 million, of which $

118.6

 million related to

agricultural inputs and $

114.8

 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the

next

12

 months.

We also have net investments in foreign subsidiaries that are denominated in euros. As of August 25, 2024, we hedged a portion of

these investments with €

3,979.4

 million of euro-denominated bonds.

The fair values of the derivative positions used in our risk management activities and other assets recorded at fair value were not

material as of August 25, 2024, and were Level 1 or Level 2 assets and liabilities in the fair value hierarchy. We did not significantly

change our valuation techniques from prior periods. 

12

We offer certain suppliers access to third-party services that allow them to view our scheduled payments online. The third-party

services also allow suppliers to finance advances on our scheduled payments at the sole discretion of the supplier and the third party.

We have no economic interest in these financing arrangements and no direct relationship with the suppliers, the third parties, or any

financial institutions concerning these services, including not providing any form of guarantee and not pledging assets as security to

the third parties or financial institutions. All of our accounts payable remain as obligations to our suppliers as stated in our supplier

agreements. As of August 25, 2024, $

1,421.6

 million of our total accounts payable were payable to suppliers who utilize these third-

party services. As of May 26, 2024, $

1,404.4

 million of our total accounts payable were payable to suppliers who utilize these third-

party services.

(7) Debt

The components of notes payable were as follows:

Aug. 25, 2024

May 26, 2024

In Millions

Notes Payable

Weighted-

Average

Interest Rate

Notes Payable

Weighted-

Average

Interest Rate

U.S. commercial paper

$

205.0

5.4

%

$

-

-

%

Financial institutions

44.1

7.7

11.8

8.8

Total

$

249.1

5.8

%

$

11.8

8.8

%

To ensure availability of funds, we maintain bank credit lines and have commercial paper programs available to us in the United States

and Europe.

The following table details the fee-paid committed and uncommitted credit lines we had available as of August 25, 2024:

In Billions

Facility 

Amount

Borrowed

Amount

Committed credit facility expiring April 2026

$

2.7

$

-

Uncommitted credit facilities

0.7

-

Total committed and uncommitted credit facilities

$

3.4

$

-

The credit facilities contain covenants, including a requirement to maintain a fixed charge coverage ratio of at least

2.5

 times.

We

were in compliance with all credit facility covenants as of August 25, 2024.

Long-Term Debt 

The fair values and carrying amounts of long-term debt, including the current portion, were $

12,653.5

 million and $

13,071.3

 million,

respectively, as of August 25, 2024. The fair value of long-term debt was estimated using market quotations and discounted cash

flows based on our current incremental borrowing rates for similar types of instruments. Long -term debt is a Level 2 liability in the

fair value hierarchy. 

In the fourth quarter of fiscal 2024, we issued €

500.0

 million of

3.65

 percent fixed-rate notes due

October 23, 2030

. We used the net

proceeds for general corporate purposes.

In the fourth quarter of fiscal 2024, we issued €

500.0

 million of

3.85

 percent fixed-rate notes due

April 23, 2034

. We used the net

proceeds for general corporate purposes.

In the third quarter of fiscal 2024, we issued $

500.0

 million of

4.7

 percent fixed-rate notes due

January 30, 2027

. We used the net

proceeds to repay $

500.0

 million of

3.65

 percent fixed-rate notes due

February 15, 2024

. 

In the second quarter of fiscal 2024, we issued €

250.0

 million of floating-rate notes due

November 8, 2024

. We used the net proceeds

to repay €

250.0

 million of floating-rate notes due

November 10, 2023

. 

In the second quarter of fiscal 2024, we issued $

500.0

 million of

5.5

 percent fixed-rate notes due

October 17, 2028

. We used the net

proceeds to repay $

400.0

 million of floating-rate notes due

October 17, 2023

, and for general corporate purposes. 

In the first quarter of fiscal 2024, we issued €

500.0

 million of floating-rate notes due

November 8, 2024

. We used the net proceeds to

repay €

500.0

 million of floating-rate notes due

July 27, 2023

. 

13

Certain of our long-term debt agreements contain restrictive covenants.

As of August 25, 2024, we were in compliance with all of

these covenants.

(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.

(9) Stockholders’ Equity 

The following tables provide details of total comprehensive income:

Quarter Ended

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

General Mills

Noncontrolling

Interests 

General Mills

Noncontrolling

Interests

In Millions

Pretax

Tax

Net

Net

Pretax

Tax

Net

Net

Net earnings, including earnings 

 attributable to noncontrolling interests 

$

579.9

$

3.7

$

673.5

$

6.8

Other comprehensive (loss) income:

Foreign currency translation

$

(93.9)

$

31.5

(62.4)

0.5

$

(22.0)

$

3.8

(18.2)

0.1

Other fair value changes:

Hedge derivatives

(7.5)

1.5

(6.0)

-

(2.7)

0.4

(2.3)

-

Reclassification to earnings:

Hedge derivatives (a)

(0.4)

0.4

-

-

(1.3)

1.5

0.2

-

Amortization of losses and

 prior service costs (b)

14.5

(2.9)

11.6

-

11.5

(2.4)

9.1

-

Other comprehensive (loss) income

$

(87.3)

$

30.5

(56.8)

0.5

$

(14.5)

$

3.3

(11.2)

0.1

Total comprehensive income

$

523.1

$

4.2

$

662.3

$

6.9

(a) Loss reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and SG&A expenses for foreign exchange contracts.

(b) Loss reclassified from AOCI into earnings is reported in benefit plan non-service income.

Accumulated other comprehensive loss balances, net of tax effects, were as follows:

In Millions

Aug. 25, 2024

May 26, 2024

Foreign currency translation adjustments

$

(857.7)

$

(795.3)

Unrealized (loss) gain from hedge derivatives

(5.8)

0.2

Pension, other postretirement, and postemployment benefits:

Net actuarial loss

(1,790.8)

(1,806.3)

Prior service credits

77.8

81.7

Accumulated other comprehensive loss

$

(2,576.5)

$

(2,519.7)

(10) Stock Plans

We have various stock-based compensation programs under which awards, including stock options, restricted stock, restricted stock

units, and performance awards, may be granted to employees and non-employee directors. These programs and related accounting are

described in Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended

May 26, 2024.

Compensation expense related to stock-based payments recognized in the Consolidated Statements of Earnings was as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Compensation expense related to stock-based payments

$

20.3

$

35.3

14

Windfall tax benefits from stock-based payments in income tax expense in our Consolidated Statements of Earnings were as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Windfall tax benefits from stock-based payments

$

2.8

$

8.4

As of August 25, 2024, unrecognized compensation expense related to non-vested stock options, restricted stock units, and

performance share units was $

185.9

 million. This expense will be recognized over

26

 months, on average.

Net cash proceeds from the exercise of stock options less shares used for withholding taxes and the intrinsic value of options exercised

were as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Net cash proceeds

$

9.4

$

4.5

Intrinsic value of options exercised

$

1.9

$

2.1

We estimate the fair value of each option on the grant date using a Black-Scholes option-pricing model, which requires us to make

predictive assumptions regarding future stock price volatility, employee exercise behavior, dividend yield, and the forfeiture rate. We

estimate our future stock price volatility using the historical volatility over the expected term of the option, excluding time periods of

volatility we believe a marketplace participant would exclude in estimating our stock price volatility. We also have considered, but did

not use, implied volatility in our estimate, because trading activity in options on our stock, especially those with tenors of greater than

6 months, is insufficient to provide a reliable measure of expected volatility. Our method of selecting the other valuation assumptions

is explained in Note 12 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year

ended May 26, 2024.

The estimated fair values of stock options granted and the assumptions used for the Black-Scholes option-pricing model were as

follows:

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

Estimated fair values of stock options granted 

$

13.20

$

17.47

Assumptions:

Risk-free interest rate

4.5

%

4.0

%

Expected term

8.5

years

8.5

years

Expected volatility

21.6

%

21.4

%

Dividend yield

3.8

%

2.8

%

The total grant date fair value of restricted stock unit awards that vested during the period was as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Total grant date fair value

$

90.8

$

104.8

15

(11) Earnings Per Share

Basic and diluted earnings per share (EPS) were calculated using the following:

Quarter Ended

In Millions, Except per Share Data

Aug. 25, 2024

Aug. 27, 2023

Net earnings attributable to General Mills

$

579.9

$

673.5

Average number of common shares – basic EPS

560.5

586.3

Incremental share effect from: (a)

Stock options

1.5

2.8

Restricted stock units and performance share units

1.8

2.3

Average number of common shares – diluted EPS

563.8

591.4

Earnings per share – basic

$

1.03

$

1.15

Earnings per share – diluted

$

1.03

$

1.14

(a) Incremental shares from stock options, restricted stock units, and performance share units are computed by the treasury stock

method

. Stock options, restricted stock units, and performance share units excluded from our computation of diluted EPS because

they were not dilutive were as follows

:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Anti-dilutive stock options, restricted stock units, and

 performance share units 

4.4

1.6

(12) Share Repurchases

Share repurchases were as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Shares of common stock

4.5

6.4

Aggregate purchase price

$

302.2

$

504.7

(13) Statements of Cash Flows

Our Consolidated Statements of Cash Flows include the following:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Net cash interest payments

$

83.7

$

83.9

Net income tax payments

$

18.7

$

13.7

16

(14) Retirement and Postemployment Benefits

Components of net periodic benefit expense (income) are as follows:

Defined Benefit

Pension Plans

Other Postretirement 

Benefit Plans

Postemployment

Benefit Plans

Quarter Ended

Quarter Ended

Quarter Ended

In Millions

Aug. 25,

2024

Aug. 27,

2023

Aug. 25,

2024

Aug. 27,

2023

Aug. 25,

2024

Aug. 27,

2023

Service cost

$

13.0

$

14.2

$

1.1

$

1.2

$

1.8

$

1.8

Interest cost

76.7

74.2

5.3

5.3

1.0

1.0

Expected return on plan assets

(105.0)

(102.9)

(9.0)

(8.7)

-

-

Amortization of losses (gains)

25.1

21.5

(5.2)

(5.1)

0.1

-

Amortization of prior service costs (credits)

0.3

0.4

(5.5)

(5.4)

(0.3)

0.1

Other adjustments

-

-

-

-

2.6

2.6

Net expense (income)

$

10.1

$

7.4

$

(13.3)

$

(12.7)

$

5.2

$

5.5

(15) Income Taxes

During the second quarter of fiscal 2024, we received a notice of proposed adjustment from the Internal Revenue Service associated

with a capital loss from fiscal 2019. We believe that we have meritorious defenses against this assessment and will vigorously defend

our position. We do not expect the resolution of the proposed adjustment to have a material impact on our financial position or

liquidity.

In December 2021, the Organization for Economic Cooperation and Development (OECD) established a framework, referred to as

Pillar 2, designed to ensure large multinational enterprises pay a minimum 15 percent level of tax on the income arising in each

jurisdiction in which they operate. Numerous countries have already enacted the OECD model rules effective for taxable years

beginning after December 31, 2023, which for us is fiscal 2025. There was no material impact on our consolidated financial

statements. Several other countries have enacted or drafted legislation that is not yet effective for us, and we do not expect this

legislation to have a material impact on our consolidated financial statements. We will continue to monitor for new legislation and

guidance and evaluate potential impact on our consolidated financial statements.

(16) Contingencies

During fiscal 2020, we received notice from the tax authorities of the State of São Paulo, Brazil regarding our compliance with its

state sales tax requirements. As a result, we have been assessed additional state sales taxes, interest, and penalties. We believe that we

have meritorious defenses against this claim and will vigorously defend our position. As of August 25, 2024, we are unable to estimate

any possible loss and have not recorded a loss contingency for this matter.

(17) Business Segment and Geographic Information

We operate in the packaged foods industry. Our operating segments are as follows: North America Retail, International, North

America Pet, and North America Foodservice. In the first quarter of fiscal 2025, we renamed the Pet segment to the North America

Pet segment to reflect that pet food results outside North America are recorded in the International segment. There were no changes to

the composition of our reportable segments or information reviewed by our chief operating decision maker and no impact on our

historical segment operating results.

Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership

stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product

categories in this business segment include ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough

products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of

organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks, and snack bars.

Our International operating segment consists of retail and foodservice businesses outside of the United States and Canada. Our

product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes,

shelf-stable vegetables, and pet food products. We also sell super-premium ice cream and frozen desserts directly to consumers

through owned retail shops. Our International segment also includes products manufactured in the United States for export, mainly to

Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenues from

export activities are reported in the region or country where the end customer is located.

17

Our North America Pet operating segment includes pet food products sold primarily in the United States and Canada in national pet

superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and veterinary clinics and

hospitals. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits,

vegetables, and other high-quality natural ingredients. Our tailored pet product offerings address specific dietary, lifestyle, and life-

stage needs and span different product types, diet types, breed sizes for dogs, life-stages, flavors, product functions, and textures and

cuts for wet foods.

Our North America Foodservice segment consists of foodservice businesses in the United States and Canada. Our major product

categories in our North America Foodservice operating segment are ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals,

unbaked and fully baked frozen dough products, baking mixes, and bakery flour. Many products we sell are branded to the consumer

and nearly all are branded to our customers. We sell to distributors and operators in many customer channels including foodservice,

vending, and supermarket bakeries.

Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, impairment,

and other exit costs. Results from certain businesses managed by our Gold Medal Ventures entity are included within corporate and

other net sales and unallocated corporate items within operating profit. Unallocated corporate items also include corporate overhead

expenses, variances to planned North American employee benefits and incentives, certain charitable contributions, restructuring

initiative project-related costs, gains and losses on corporate investments, and other items that are not part of our measurement of

segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and

losses from mark-to-market valuation of certain commodity positions until passed back to our operating segments. These items

affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability

reviewed by executive management. Under our supply chain organization, our manufacturing, warehouse, and distribution activities

are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and

depreciation and amortization expenses are neither maintained nor available by operating segment.

Our operating segment results were as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Net sales:

North America Retail

$

3,016.6

$

3,073.0

International

717.0

715.8

North America Pet

576.1

579.9

North America Foodservice

536.2

536.0

Total segment net sales

$

4,845.9

$

4,904.7

Corporate and other

2.2

-

Total net sales

$

4,848.1

$

4,904.7

Operating profit:

North America Retail

$

745.7

$

798.2

International

20.9

50.0

North America Pet

119.4

111.2

North America Foodservice

71.5

59.1

Total segment operating profit

$

957.5

$

1,018.5

Unallocated corporate items

123.8

87.3

Restructuring, impairment, and other exit costs

2.2

1.2

Operating profit

$

831.5

$

930.0

18

Net sales for our North America Retail operating units were as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

U.S. Meals & Baking Solutions

$

946.3

$

941.9

U.S. Snacks

910.5

954.5

U.S. Morning Foods

902.9

927.8

Canada

256.9

248.8

Total

$

3,016.6

$

3,073.0

Net sales by class of similar products were as follows:

Quarter Ended

In Millions

Aug. 25, 2024

Aug. 27, 2023

Snacks

$

1,106.8

$

1,136.7

Cereal

793.1

817.9

Convenient meals

678.9

665.5

Pet

604.6

579.9

Dough

517.8

534.9

Baking mixes and ingredients

457.1

466.5

Yogurt

371.9

368.4

Super-premium ice cream

212.9

224.0

Other

105.0

110.9

Total

$

4,848.1

$

4,904.7

19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

INTRODUCTION

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in

conjunction with the MD&A included in our Annual Report on Form 10-K for the fiscal year ended May 26, 2024, for important

background regarding, among other things, our key business drivers. Significant trademarks and service marks used in our business

are set forth in

italics

herein. Certain terms used throughout this report are defined in the “Glossary” section below.

Our key priorities in fiscal 2025 are to accelerate our organic net sales growth, create fuel for investment, and drive strong cash

generation. Amid a continued uncertain macroeconomic backdrop for consumers, we expect volume trends in our categories will

gradually improve over the course of the year, though full-year category dollar growth is expected to be below our long-term growth

projections. We expect to increase our organic net sales growth by delivering remarkable experiences across our leading food brands,

resulting in improved household penetration and stronger market share trends versus the prior year. Our fiscal 2025 plan calls for

product news and innovation focused on taste, health, convenience, and value, supported with strong brand campaigns and

omnichannel visibility. We expect to generate higher levels of Holistic Margin Management (HMM) cost savings to more than offset

input cost inflation in fiscal 2025. We expect to reinvest in the business, including plans for increased brand-building investment in

fiscal 2025 to drive improved volume performance.

CONSOLIDATED RESULTS OF OPERATIONS

First Quarter Results

In the first quarter of fiscal 2025, net sales and organic net sales decreased 1 percent compared to the same period last year. Operating

profit decreased 11 percent to $832 million, primarily driven by an unfavorable change in the mark-to-market valuation of certain

commodity positions and grain inventories, unfavorable net price realization and mix, and an increase in selling, general and

administrative (SG&A) expenses, partially offset by lower input costs. Operating profit margin of 17.2 percent decreased 180 basis

points. Adjusted operating profit of $865 million decreased 4 percent on a constant-currency basis, primarily driven by unfavorable

net price realization and mix and an increase in SG&A expenses, partially offset by lower input costs. Adjusted operating profit

margin decreased 50 basis points to 17.8 percent. Diluted earnings per share of $1.03 decreased 10 percent in the first quarter of fiscal

2025. Adjusted diluted earnings per share of $1.07 decreased 2 percent on a constant-currency basis compared to the first quarter of

fiscal 2024. See the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP.

A summary of our consolidated financial results for the first quarter of fiscal 2025 follows:

Quarter Ended Aug. 25, 2024

In millions,

except per share

Quarter Ended

Aug. 25, 2024 vs.

Aug. 27, 2023

Percent

of Net

Sales

Constant-

Currency

Growth (a)

Net sales 

$

4,848.1

(1)

%

Operating profit

831.5

(11)

%

17.2

%

Net earnings attributable to General Mills

579.9

(14)

%

Diluted earnings per share

$

1.03

(10)

%

Organic net sales growth rate (a)

(1)

%

Adjusted operating profit (a)

865.3

(4)

%

17.8

%

(4)

%

Adjusted diluted earnings per share (a)

$

1.07

(2)

%

(2)

%

(a) See the “Non-GAAP Measures” section below for our use of measures not defined by GAAP.

Consolidated

net sales

 were as follows:

Quarter Ended

Aug. 25, 2024

Aug. 25, 2024 vs. 

Aug. 27, 2023

Aug. 27, 2023

Net sales (in millions)

$

4,848.1

(1)

%

$

4,904.7

Contributions from volume growth (a)

Flat

Net price realization and mix

(1)

pt

Foreign currency exchange

Flat

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

20

Net sales in the first quarter of fiscal 2025 decreased 1 percent compared to the same period in fiscal 2024, driven by unfavorable net

price realization and mix.

Components of organic net sales growth are shown in the following table: 

Quarter Ended Aug. 25, 2024 vs.

Quarter Ended Aug. 27, 2023

Contributions from organic volume growth (a)

Flat

Organic net price realization and mix

(1)

pt

Organic net sales growth

(1)

pt

Foreign currency exchange

Flat

Acquisition

Flat

Net sales growth

(1)

pt

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

Organic net sales decreased 1 percent in the first quarter of fiscal 2025 compared to the same period in fiscal 2024, driven by

unfavorable organic net price realization and mix.

Cost of sales

increased $25 million to $3,159 million in the first quarter of fiscal 2025 compared to the same period in fiscal 2024.

The increase included a $7 million increase attributable to volume and a $47 million decrease attributable to product rate and mix. We

recorded a $29 million net increase in cost of sales related to the mark-to-market valuation of certain commodity positions and grain

inventories in the first quarter of fiscal 2025, compared to a $45 million net decrease in the first quarter of fiscal 2024. We also

recorded $1 million of restructuring charges in the first quarter of fiscal 2025 compared to $9 million of restructuring charges and $1

million of restructuring initiative project-related costs in cost of sales in the first quarter of fiscal 2024 (please refer to Note 3 to the

Consolidated Financial Statements in Part I, Item 1 of this report). 

SG&A expenses

increased $16 million to $855 million in the first quarter of fiscal 2025, compared to the same period in fiscal 2024,

primarily driven by increased media and advertising expenses. SG&A expenses as a percent of net sales in the first quarter of fiscal

2025 increased 50 basis points compared to the first quarter of fiscal 2024.

Restructuring, impairment, and other exit costs

totaled $2 million in the first quarter of fiscal 2025, compared to $1 million in the

same period last year (please refer to Note 3 to the Consolidated Financial Statements in Part I, Item 1 of this report).

Benefit plan non-service income

totaled $14 million in the first quarter of fiscal 2025, compared to $17 million in the same period

last year, primarily reflecting higher amortization of losses. 

Interest, net

for the first quarter of fiscal 2025 totaled $124 million, up $7 million from the first quarter of fiscal 2024, primarily

driven by higher average long-term debt levels.

The

effective tax rate

 for the first quarter of fiscal 2025 was 21.8 percent compared to 20.9 percent for the first quarter of fiscal 2024.

The 0.9 percentage point increase was primarily due to certain nonrecurring discrete tax benefits in the first quarter of fiscal 2024,

partially offset by favorable earnings mix by jurisdiction in the first quarter of fiscal 2025. Our effective tax rate excluding certain

items affecting comparability was 21.9 percent in the first quarter of fiscal 2025, compared to 21.1 percent in the same period last year

(see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). The 0.8 percentage

point increase was primarily due to certain nonrecurring discrete tax benefits in the first quarter of fiscal 2024, partially offset by

favorable earnings mix by jurisdiction in the first quarter of fiscal 2025. 

21

After-tax earnings from joint ventures

 for the first quarter of fiscal 2025

decreased to $19 million compared to $24 million in the

same period in fiscal 2024, primarily due to favorable discrete tax items in the first quarter of fiscal 2024, higher SG&A expenses, and

a decrease in volume at Cereal Partners Worldwide (CPW), partially offset by favorable net price realization and mix at CPW and

lower SG&A expenses at Häagen-Dazs Japan, Inc. (HDJ). On a constant-currency basis, after-tax earnings from joint ventures

decreased 14 percent (see the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP). 

The components of our joint ventures’ net sales growth are shown in the following table: 

Quarter Ended Aug. 25, 2024 vs.

Quarter Ended Aug. 27, 2023

CPW

HDJ

Total

Contributions from volume growth (a)

(2)

pts

1

pt

Net price realization and mix

3

pts

(1)

pt

Net sales growth in constant currency

1

pt

Flat

1

pt

Foreign currency exchange

(4)

pts

(8)

pts

(5)

pts

Net sales growth

(4)

pts

(8)

pts

(4)

pts

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

Average diluted shares outstanding

decreased by 28 million in the first quarter of fiscal 2025 from the same period a year ago

primarily due to share repurchases, partially offset by option exercises.

SEGMENT OPERATING RESULTS

Our businesses are organized into four operating segments: North America Retail, International, North America Pet, and North

America Foodservice. Please refer to Note 17 of the Consolidated Financial Statements in Part I, Item 1 of this report for a description

of our operating segments.

North America Retail Segment Results

North America Retail net sales were as follows:

Quarter Ended

Aug. 25,

2024

Aug. 25, 2024 vs

Aug. 27, 2023

Aug. 27,

2023

Net sales (in millions)

$

3,016.6

(2)

%

$

3,073.0

Contributions from volume growth (a)

(3)

pts

Net price realization and mix

1

pt

Foreign currency exchange

Flat

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

North America Retail net sales decreased 2 percent in the first quarter of fiscal 2025 compared to the same period in fiscal 2024,

driven by a decrease in contributions from volume growth, partially offset by favorable net price realization and mix.

The components of North America Retail organic net sales growth are shown in the following table:

Quarter Ended

Aug. 25, 2024

Contributions from organic volume growth (a)

(3)

pts

Organic net price realization and mix

1

pt

Organic net sales growth

(2)

pts

Foreign currency exchange

Flat

Net sales growth

(2)

pts

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

22

North America Retail organic net sales decreased 2 percent in the first quarter of fiscal 2025 compared to the same period in fiscal

2024, driven by a decrease in contributions from organic volume growth, partially offset by favorable organic net price realization and

mix.

North America Retail net sales percentage change by operating unit are shown in the following table:

Quarter Ended

Aug. 25, 2024

U.S. Snacks

(5)

%

U.S. Morning Foods

(3)

%

Canada (a)

3

%

U.S. Meals & Baking Solutions

Flat

Total

(2)

%

(a) On a constant-currency basis, Canada net sales increased 6 percent in the first quarter of fiscal 2025 compared to the same period

in fiscal 2024. See the “Non-GAAP Measures” section below for our use of this measure not defined by GAAP.

Segment operating profit decreased 7 percent to $746 million in the first quarter of fiscal 2025, compared to $798 million in the same

period in fiscal 2024, primarily driven by higher input costs and a decrease in contributions from volume growth, partially offset by

favorable net price realization and mix. Segment operating profit decreased 6 percent on a constant -currency basis in the first quarter

of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section below for our use of this measure

not defined by GAAP).

International Segment Results

International net sales were as follows:

Quarter Ended

Aug. 25,

2024

Aug. 25, 2024 vs

Aug. 27, 2023

Aug. 27,

2023

Net sales (in millions)

$

717.0

Flat

$

715.8

Contributions from volume growth (a)

8

pts

Net price realization and mix

(6)

pts

Foreign currency exchange

(2)

pts

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

International net sales in the first quarter of fiscal 2025 essentially matched the same period in fiscal 2024.

The components of International organic net sales growth are shown in the following table:

Quarter Ended

Aug. 25, 2024

Contributions from organic volume growth (a)

6

pts

Organic net price realization and mix

(7)

pts

Organic net sales growth

(1)

pt

Foreign currency exchange

(2)

pts

Acquisition (b)

3

pts

Net sales growth

Flat

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

(b) Acquisition of a pet food business in Europe in fiscal 2024. Please see Note 2 to the Consolidated Financial Statements in Part I,

 Item 1 of this report.

International organic net sales decreased 1 percent in the first quarter of fiscal 2025, compared to the same period in fiscal 2024,

driven by unfavorable organic net price realization and mix, partially offset by an increase in contributions from organic volume

growth.

23

Segment operating profit decreased 58 percent to $21 million in the first quarter of fiscal 2025, compared to $50 million in the same

period in fiscal 2024, primarily driven by unfavorable net price realization and mix and higher SG&A expenses, partially offset by

lower input costs and an increase in contributions from volume growth. Segment operating profit decreased 64 percent on a constant-

currency basis in the first quarter of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section

below for our use of this measure not defined by GAAP).

North America Pet Segment Results

North America Pet net sales were as follows:

Quarter Ended

Aug. 25,

2024

Aug. 25, 2024 vs

Aug. 27, 2023

Aug. 27,

2023

Net sales (in millions)

$

576.1

(1)

%

$

579.9

Contributions from volume growth (a)

3

pts

Net price realization and mix

(3)

pts

Foreign currency exchange

Flat

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

North America Pet net sales decreased 1 percent in the first quarter of fiscal 2025, compared to the same period in fiscal 2024, driven

by unfavorable net price realization and mix, partially offset by an increase in contributions from volume growth.

The components of North America Pet organic net sales growth are shown in the following table:

Quarter Ended

Aug. 25, 2024

Contributions from organic volume growth (a)

3

pts

Organic net price realization and mix

(3)

pts

Organic net sales growth

(1)

pt

Foreign currency exchange

Flat

Net sales growth

(1)

pt

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

North America Pet organic net sales decreased 1 percent in the first quarter of fiscal 2025, compared to the same period in fiscal 2024,

driven by unfavorable organic net price realization and mix, partially offset by an increase in contributions from organic volume

growth.

Segment operating profit increased 7 percent to $119 million in the first quarter of fiscal 2025, compared to $111 million in the same

period in fiscal 2024, primarily driven by lower input costs and an increase in contributions from volume growth, partially offset by

unfavorable net price realization and mix and higher SG&A expenses . Segment operating profit increased 7 percent on a constant-

currency basis in the first quarter of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section

below for our use of this measure not defined by GAAP).

24

North America Foodservice Segment Results

North America Foodservice net sales were as follows:

Quarter Ended

Aug. 25,

2024

Aug. 25, 2024 vs

Aug. 27, 2023

Aug. 27,

2023

Net sales (in millions)

$

536.2

Flat

$

536.0

Contributions from volume growth (a)

Flat

Net price realization and mix

Flat

Foreign currency exchange

Flat

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

North America Foodservice net sales in the first quarter of fiscal 2025 essentially matched the same period in fiscal 2024.

The components of North America Foodservice organic net sales growth are shown in the following table:

Quarter Ended

Aug. 25, 2024

Contributions from organic volume growth (a)

Flat

Organic net price realization and mix

Flat

Organic net sales growth

Flat

Foreign currency exchange

Flat

Net sales growth

Flat

Note: Table may not foot due to rounding.

(a) Measured in tons based on the stated weight of our product shipments.

North America Foodservice organic net sales in the first quarter of fiscal 2025 essentially matched the same period in fiscal 2024.

Segment operating profit increased 21 percent to $72 million in the first quarter of fiscal 2025, compared to $59 million in the same

period in fiscal 2024, primarily driven by lower input costs. Segment operating profit increased 21 percent on a constant-currency

basis in the first quarter of fiscal 2025, compared to the same period in fiscal 2024 (see the “Non-GAAP Measures” section below for

our use of this measure not defined by GAAP).

UNALLOCATED CORPORATE ITEMS

Unallocated corporate expenses totaled $124 million in the first quarter of fiscal 2025, compared to $87 million in the same period in

fiscal 2024. In the first quarter of fiscal 2025, we recorded a $29 million net increase in expense related to the mark-to-market

valuation of certain commodity positions and grain inventories, compared to a $45 million net decrease in expense in the same period

last year. Certain compensation and benefits expenses decreased in the first quarter of fiscal 2025 compared to the same period last

year. We recorded $1 million of restructuring charges in cost of sales in the first quarter of fiscal 2025, compared to $9 million of

restructuring charges in cost of sales in the same period last year. We recorded $3 million of net losses related to valuation

adjustments on certain corporate investments in the first quarter of fiscal 2024. In addition, we recorded $2 million of integration costs

in the first quarter of fiscal 2025 related to our acquisition of a pet food business in Europe in fiscal 2024.

LIQUIDITY AND CAPITAL RESOURCES

During the first quarter of fiscal 2025, cash provided by operations was $624 million compared to $378 million in the same period last

year. The $246 million increase was primarily driven by a $350 million change in current assets and liabilities, partially offset by a

$97 million decrease in net earnings. The $350 million change in current assets and liabilities is primarily driven by a $367 million

change in the timing of accounts payable.

Cash used by investing activities during the first quarter of fiscal 2025 was $148 million compared to $136 million for the same period

in fiscal 2024. During the first quarter of fiscal 2025, we paid $8 million related to a purchase price holdback after certain closing

conditions were met for the acquisition of a pet food business in Europe in the fourth quarter of fiscal 2024. In addition, during the

first quarter of fiscal 2025, we spent $140 million on purchases of land, buildings, and equipment in the first quarter of fiscal 2025,

compared to $142 million in the same period last year.

25

Cash used by financing activities during the first quarter of fiscal 2025 was $429 million compared to $334 million in the same period

in fiscal 2024. We had $238 million of net debt issuances in the first quarter of fiscal 2025, compared to $552 million of net debt

issuances in the same period a year ago. We paid $300 million for purchases of common stock for treasury in the first quarter of fiscal

2025, compared to $500 million in the same period in fiscal 2024. In addition, we paid $338 million of dividends in the first quarter of

fiscal 2025, compared to $348 million in the same period last year.

As of August 25, 2024, we had $414 million of cash and cash equivalents in foreign jurisdictions. In anticipation of repatriating funds

from foreign jurisdictions, we record local country withholding taxes on our international earnings, as applicable. We may repatriate

our cash and cash equivalents held by our foreign subsidiaries without such funds being subject to further U.S. income tax

liability. Earnings prior to fiscal 2018 from our foreign subsidiaries remain permanently reinvested in those jurisdictions.

The following table details the fee-paid committed and uncommitted credit lines we had available as of August 25, 2024:

In Billions

Facility 

Amount

Borrowed

Amount

Committed credit facility expiring April 2026

$

2.7

$

-

Uncommitted credit facilities

0.7

-

Total committed and uncommitted credit facilities

$

3.4

$

-

To ensure availability of funds, we maintain bank credit lines and have commercial paper programs available to us in the United States

and Europe.

Certain of our long-term debt agreements, our credit facilities, and our noncontrolling interests contain restrictive covenants. As of

August 25, 2024, we were in compliance with all of these covenants. 

We have $1,640 million of long-term debt maturing in the next 12 months that is classified as current, including €750 million of

floating-rate notes due November 8, 2024, and $800 million of 4.0 percent fixed-rate notes due April 17, 2025. We believe that cash

flows from operations, together with available short- and long-term debt financing, will be adequate to meet our liquidity and capital

needs for at least the next 12 months.

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 $252 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. 

We have an option to purchase the Class A Interests for consideration equal to the then current capital account value, plus any unpaid

preferred return and the prescribed make-whole amount. If we purchase these interests, any change in the third-party holder’s capital

account from its original value will be charged directly to retained earnings and will increase or decrease the net earnings used to

calculate EPS in that period. 

CRITICAL ACCOUNTING ESTIMATES

Our significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in our Annual Report on

Form 10-K for the fiscal year ended May 26, 2024. The accounting policies used in preparing our interim fiscal 2025 Consolidated

Financial Statements are the same as those described in our Form 10-K. Please see Note 1 to the Consolidated Financial Statements in

Part I, Item 1 of this report for additional information.

Our critical accounting estimates are those that have meaningful impact on the reporting of our financial condition and results of

operations. These estimates include our accounting for revenue recognition, valuation of long-lived assets, intangible assets, income

taxes, and defined benefit pension, other postretirement benefit, and postemployment benefit plans. The assumptions and

methodologies used in the determination of those estimates as of August 25, 2024, are the same as those described in our Annual

Report on Form 10-K for the fiscal year ended May 26, 2024.

Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of

fiscal 2024. As a result of lower future profitability projections for our Latin America reporting unit, we determined that the fair value

of the reporting unit was less than its book value and recorded a $117 million non-cash goodwill impairment charge. In addition,

during the fourth quarter of fiscal 2024, we executed our fiscal 2025 planning process and preliminary long-range planning process,

which resulted in lower future sales and profitability projections for the businesses supporting our

Top Chews

,

True Chews

, and

EPIC

brand intangible assets. As a result of this triggering event, we performed an interim impairment assessment of these assets as of May

26

26, 2024, and determined that the fair value of these brand intangible assets no longer exceeded the carrying values of the respective

assets, resulting in $103 million of non-cash impairment charges. We recorded impairment charges in restructuring, impairment, and

other exit costs in our Consolidated Statements of Earnings. Our estimates of the fair values were determined based on a discounted

cash flow model using inputs which included our long-range cash flow projections for the businesses, royalty rates, weighted -average

cost of capital rates, and tax rates. The fair values are Level 3 assets in the fair value hierarchy.

All other intangible asset fair values were substantially in excess of the carrying values, except for the

Uncle Toby’s

 brand intangible

asset. In addition, while having significant coverage as of our fiscal 2024 assessment date, the

Progresso

,

Nudges

, and

True Chews

brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In March 2024, the Securities and Exchange Commission (SEC) issued final rules on the enhancement and standardization of climate-

related disclosures. The rules require disclosure of, among other things: material climate-related risks; activities to mitigate or adapt to

such risks; governance and management of such risks; and material greenhouse gas (GHG) emissions from operations owned or

controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules

require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject

to certain materiality thresholds. The SEC has issued a stay on the final rules due to litigation and the effective date is delayed

indefinitely. We are in the process of analyzing the impact of the rules on our disclosures.

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 requiring

enhanced income tax disclosures. The ASU requires disclosure of specific categories and disaggregation of information in the rate

reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from

continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The

requirements of the ASU are effective for annual periods beginning after December 15, 2024, which for us is fiscal 2026. Early

adoption is permitted and the amendments should be applied on a prospective basis. Retrospective application is permitted. We are in

the process of analyzing the impact of the ASU on our related disclosures.

In November 2023, the FASB issued ASU 2023-07 requiring enhanced segment disclosures. The ASU requires disclosure of

significant segment expenses regularly provided to the chief operating decision maker (CODM) included within segment operating

profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess

segment performance. The requirements of the ASU are effective for annual periods beginning after December 15, 2023, and interim

periods within fiscal years beginning after December 15, 2024. For us, annual reporting requirements will be effective for our fiscal

2025 and interim reporting requirements will be effective beginning with our first quarter of fiscal 2026. Early adoption is permitted

and retrospective application is required for all periods presented. We are in the process of analyzing the impact of the ASU on our

related disclosures.

27

NON-GAAP MEASURES

We have included in this report measures of financial performance that are not defined by GAAP. We believe that these measures

provide useful information to investors, and include these measures in other communications to investors.

For each of these non-GAAP financial measures, we are providing below a reconciliation of the differences between the non-GAAP

measure and the most directly comparable GAAP measure, an explanation of why we believe the non-GAAP measure provides useful

information to investors, and any additional material purposes for which our management or Board of Directors uses the non-GAAP

measure. These non-GAAP measures should be viewed in addition to, and not in lieu of, the comparable GAAP measure.

Significant Items Impacting Comparability

Several measures below are presented on an adjusted basis. The adjustments are either items resulting from infrequently occurring

events or items that, in management’s judgment, significantly affect the year-to-year assessment of operating results. 

The following are descriptions of significant items impacting comparability of our results. 

Mark-to-market effects

Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 6 to the

Consolidated Financial Statements in Part I, Item 1 of this report.

Restructuring charges and project-related costs

Restructuring charges and project-related costs related to previously announced restructuring actions recorded in fiscal 2025 and fiscal

2024. Please see Note 3 to the Consolidated Financial Statements in Part I, Item 1 of this report.

Acquisition integration costs

Integration costs related to the acquisition of a pet food business in Europe recorded in fiscal 2025. Integration costs primarily

resulting from the acquisition of TNT Crust recorded in fiscal 2024. Please see Note 2 to the Consolidated Financial Statements in Part

I, Item 1 of this report.

Investment activity, net

Valuation adjustments of certain corporate investments in fiscal 2025 and fiscal 2024. 

Product recall

Costs related to the fiscal 2023 voluntary recall of certain international

Häagen-Dazs

 ice cream products. 

Organic Net Sales Growth Rates

We provide organic net sales growth rates for our consolidated net sales and segment net sales. This measure is used in reporting to

our Board of Directors and executive management and as a component of the measurement of our performance for incentive

compensation purposes. We believe that organic net sales growth rates provide useful information to investors because they provide

transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations,

acquisitions, divestitures, and a 53

rd

 week, when applicable, have on year-to-year comparability. A reconciliation of these measures to

reported net sales growth rates, the relevant GAAP measures, are included in our Consolidated Results of Operations and Results of

Segment Operations discussions in the MD&A above.

28

Adjusted Operating Profit as a Percent of Net Sales (Adjusted Operating Profit Margin)

We believe this measure provides useful information to investors because it is important for assessing our operating profit margin on a

comparable basis.

Our adjusted operating profit margins are calculated as follows:

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

In Millions

Value

Percent of

Net Sales

Value 

Percent of

Net Sales

Operating profit as reported

$

831.5

17.2

%

$

930.0

19.0

%

Mark-to-market effects

28.8

0.6

%

(44.9)

(0.9)

%

Restructuring charges

2.9

0.1

%

9.8

0.2

%

Acquisition integration costs

1.6

-

%

0.2

-

%

Investment activity, net

0.4

-

%

2.9

0.1

%

Project-related costs

0.1

-

%

0.8

-

%

Product recall

-

-

%

0.2

-

%

Adjusted operating profit

$

865.3

17.8

%

$

899.0

18.3

%

Note: Table may not foot due to rounding. 

For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.

Adjusted Operating Profit and Related Constant-currency Growth Rate

This measure is used in reporting to our Board of Directors and executive management and as a component of the measurement of our

performance for incentive compensation purposes. We believe that this measure provides useful information to investors because it is

the operating profit measure we use to evaluate operating profit performance on a comparable year-to-year basis. Additionally, the

measure is evaluated on a constant-currency basis by excluding the effect that foreign currency exchange rate fluctuations have on

year-to-year comparability given the volatility in foreign currency exchange rates. 

Our adjusted operating profit growth on a constant-currency basis is calculated as follows:

Quarter Ended

Aug. 25, 2024

Aug. 27, 2023

Change

Operating profit as reported

$

831.5

$

930.0

(11)

%

Mark-to-market effects

28.8

(44.9)

Restructuring charges

2.9

9.8

Acquisition integration costs

1.6

0.2

Investment activity, net

0.4

2.9

Project-related costs

0.1

0.8

Product recall

-

0.2

Adjusted operating profit

$

865.3

$

899.0

(4)

%

Foreign currency exchange impact

Flat

Adjusted operating profit growth, on a constant-currency basis

(4)

%

Note: Table may not foot due to rounding.

For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.

29

Adjusted Diluted EPS and Related Constant-currency Growth Rate

This measure is used in reporting to our Board of Directors and executive management. We believe that this measure provides useful

information to investors because it is the profitability measure we use to evaluate earnings performance on a comparable year-to-year

basis.

The reconciliation of our GAAP measure, diluted EPS, to adjusted diluted EPS and the related constant-currency growth rates follows:

Quarter Ended

Per Share Data

Aug. 25, 2024

Aug. 27, 2023

Change

Diluted earnings per share, as reported

$

1.03

$

1.14

(10)

%

Mark-to-market effects

0.04

(0.06)

Restructuring charges

-

0.01

Adjusted diluted earnings per share

$

1.07

$

1.09

(2)

%

Foreign currency exchange impact

Flat

Adjusted diluted earnings per share growth, on a constant-currency basis

(2)

%

Note: Table may not foot due to rounding.

For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.

See our reconciliation below of the effective income tax rate as reported to the adjusted effective income tax rate for the tax impact of

each item affecting comparability.

Constant-currency After-tax Earnings from Joint Ventures Growth Rates 

We believe that this measure provides useful information to investors because it provides transparency to underlying performance of

our joint ventures by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given

volatility in foreign currency exchange markets. 

After-tax earnings from joint ventures growth rates on a constant-currency basis are calculated as follows:

Percentage Change in

After-Tax Earnings from Joint

Ventures as Reported

Impact of Foreign

Currency

Exchange

Percentage Change in After-Tax

Earnings from Joint Ventures

on Constant-Currency Basis

Quarter Ended Aug. 25, 2024

(18)

%

(4)

pts

(14)

%

Note: Table may not foot due to rounding.

Net Sales Growth Rates for Our Canada Operating Unit on Constant-currency Basis 

We believe that this measure of our Canada operating unit net sales provides useful information to investors because it provides

transparency to the underlying performance for the Canada operating unit within our North America Retail segment by excluding the

effect that foreign currency exchange rate fluctuations have on year-to-year comparability given volatility in foreign currency

exchange markets.

Net sales growth rates for our Canada operating unit on a constant-currency basis are calculated as follows:

Percentage Change in

Net Sales

as Reported

Impact of Foreign

Currency

Exchange

Percentage Change in

Net Sales on Constant-

Currency Basis

Quarter Ended Aug. 25, 2024

3

%

(3)

pts

6

%

Note: Table may not foot due to rounding.

Constant-currency Segment Operating Profit Growth Rates 

We believe that this measure provides useful information to investors because it provides transparency to underlying performance of

our segments by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given

volatility in foreign currency exchange markets. 

30

Our segments’ operating profit growth rates on a constant-currency basis are calculated as follows:

Quarter Ended Aug. 25, 2024

Percentage Change in

Operating Profit

as Reported

Impact of Foreign

Currency

Exchange

Percentage Change in Operating

Profit on Constant-Currency

Basis

North America Retail

(7)

%

Flat

(6)

%

International

(58)

%

6

pts

(64)

%

North America Pet

7

%

Flat

7

%

North America Foodservice

21

%

Flat

21

%

Note: Table may not foot due to rounding.

Adjusted Effective Income Tax Rates 

We believe this measure provides useful information to investors because it presents the adjusted effective income tax rate on a

comparable year-to-year basis. 

Adjusted effective income tax rates are calculated as follows: 

Quarter Ended 

Aug. 25, 2024

Aug. 27, 2023

In Millions

(Except Per Share Data)

Pretax

Earnings

(a)

Income

Taxes

Pretax

Earnings

(a)

Income

Taxes

As reported

$

721.8

$

157.4

$

830.0

$

173.2

Mark-to-market effects

28.8

6.6

(44.9)

(10.3)

Restructuring charges

2.9

0.7

9.8

4.7

Acquisition integration costs

1.6

0.4

0.2

0.1

Investment activity, net

0.4

0.1

2.9

1.0

Project-related costs

0.1

-

0.8

0.3

Product recall

-

-

0.2

0.1

As adjusted

$

755.6

$

165.3

$

799.1

$

169.0

Effective tax rate:

As reported

21.8%

20.9%

As adjusted

21.9%

21.1%

Sum of adjustments to income taxes

$

7.8

$

(4.3)

Average number of common shares - diluted EPS

563.8

591.4

Impact of income tax adjustments on adjusted diluted EPS

$

(0.01)

$

0.01

Note: Table may not foot due to rounding.

(a)

Earnings before income taxes and after-tax earnings from joint ventures. 

For more information on the reconciling items, please refer to the Significant Items Impacting Comparability section above.

31

Glossary

AOCI

. Accumulated other comprehensive income (loss).

Adjusted diluted EPS.

 Diluted EPS adjusted for certain items affecting year-to-year comparability.

Adjusted operating profit.

 Operating profit adjusted for certain items affecting year-to-year comparability.

Adjusted operating profit margin.

Operating profit adjusted for certain items affecting year-over-year comparability, divided by net

sales.

Constant currency.

 Financial results translated to United States dollars using constant foreign currency exchange rates based on the

rates in effect for the comparable prior-year period. To present this information, current period results for entities reporting in

currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the

corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year.

Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the change in the average

foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year. 

Core working capital.

 Accounts receivable plus inventories less accounts payable.

Derivatives.

Financial instruments such as futures, swaps, options, and forward contracts that we use to manage our risk arising from

changes in commodity prices, interest rates, foreign exchange rates, and stock prices.

Euribor.

 Euro Interbank Offered Rate.

Fair value hierarchy.

For purposes of fair value measurement, we categorize assets and liabilities into one of three levels based on

the assumptions (inputs) used in valuing the asset or liability. Level 1 provides the most reliable measure of fair value, while Level 3

generally requires significant management judgment. The three levels are defined as follows: 

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in

active markets or quoted prices for identical assets or liabilities in inactive markets.

Level 3: Unobservable inputs reflecting management’s assumptions about the inputs used in pricing the asset or liability.

Free cash flow.

 Net cash provided by operating activities less purchases of land, buildings, and equipment.

Generally Accepted Accounting Principles (GAAP).

Guidelines, procedures, and practices that we are required to use in recording

and reporting accounting information in our financial statements.

Goodwill.

The difference between the purchase price of acquired companies plus the fair value of any noncontrolling and redeemable

interests and the related fair values of net assets acquired. 

Gross margin.

 Net sales less cost of sales.

Hedge accounting.

Accounting for qualifying hedges that allows changes in a hedging instrument’s fair value to offset corresponding

changes in the hedged item in the same reporting period. Hedge accounting is permitted for certain hedging instruments and hedged

items only if the hedging relationship is highly effective, and only prospectively from the date a hedging relationship is formally

documented.

Holistic Margin Management (HMM).

 Company-wide initiative to use productivity savings, mix management, and price realization

to offset input cost inflation, protect margins, and generate funds to reinvest in sales-generating activities.

Interest bearing instruments.

Notes payable, long-term debt, including current portion, cash and cash equivalents, and certain

interest bearing investments classified within prepaid expenses and other current assets and other assets. 

Mark-to-market.

The act of determining a value for financial instruments, commodity contracts, and related assets or liabilities based

on the current market price for that item.

32

Net mark-to-market valuation of certain commodity positions.

Realized and unrealized gains and losses on derivative contracts

that will be allocated to segment operating profit when the exposure we are hedging affects earnings.

Net price realization.

The impact of list and promoted price changes, net of trade and other price promotion costs.

Net realizable value.

The estimated selling price in the ordinary course of business, less reasonably predictable costs of completion,

disposal, and transportation. 

Noncontrolling interests.

Interests of subsidiaries held by third parties. 

Notional amount.

The amount of a position or an agreed upon amount in a derivative contract on which the value of financial

instruments are calculated.

OCI.

Other Comprehensive Income (Loss). 

Organic net sales growth

. Net sales growth adjusted for foreign currency translation, acquisitions, divestitures and a 53

rd

 fiscal week,

when applicable.

Project-related costs.

Costs incurred related to our restructuring initiatives not included in restructuring charges.

Reporting unit

. An operating segment or a business one level below an operating segment.

SOFR.

 Secured Overnight Financing Rate.

Strategic Revenue Management (SRM).

 A company-wide capability focused on generating sustainable benefits from net price

realization and mix by identifying and executing against specific opportunities to apply tools including pricing, sizing, mix

management, and promotion optimization across each of our businesses.

Supply chain input costs.

 Costs incurred to produce and deliver product, including costs for ingredients and conversion, inventory

management, logistics, and warehousing.

Translation adjustments.

The impact of the conversion of our foreign affiliates’ financial statements to United States dollars for the

purpose of consolidating our financial statements.

Working capital

. Current assets and current liabilities, all as of the last day of our fiscal year.

33

CAUTIONARY STATEMENT RELEVANT TO FORWARD -LOOKING INFORMATION FOR THE PURPOSE OF “SAFE

HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This report contains or incorporates by reference forward-looking statements within the meaning of the Private Securities Litigation

Reform Act of 1995 that are based on our current expectations and assumptions. We also may make written or oral forward-looking

statements, including statements contained in our filings with the Securities and Exchange Commission and in our reports to

stockholders.

The words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “plan,” “project,” or similar

expressions identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such

statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and

those currently anticipated or projected. We caution you not to place undue reliance on any such forward-looking statements.

In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are identifying important

factors that could affect our financial performance and could cause our actual results in future periods to differ materially from any

current opinions or statements.

Our future results could be affected by a variety of factors, such as: disruptions or inefficiencies in the supply chain; competitive

dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities,

pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates,

tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product

improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or

assets; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising

regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long -lived assets, or changes

in the useful lives of other intangible assets; changes in accounting standards and the impact of critical accounting estimates; product

quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of

advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss

trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing

and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw

materials, packaging, energy, and transportation; effectiveness of restructuring and cost saving initiatives; volatility in the market

value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and

discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions,

including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war.

You should also consider the risk factors that we identify in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year

ended May 26, 2024, which could also affect our future results.

We undertake no obligation to publicly revise any forward-looking statements to reflect events or circumstances after the date of those

statements or to reflect the occurrence of anticipated or unanticipated events.

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 

The estimated maximum potential value-at-risk arising from a one-day loss in fair value for our interest rate, foreign exchange,

commodity, and equity market-risk-sensitive instruments outstanding as of August 25, 2024, was as follows:

In Millions

One-day Risk

of Loss

Change During

Quarter Ended

Aug. 25, 2024

Analysis of Change

Interest rate instruments

$

53

$

-

Immaterial

Foreign currency instruments

34

4

Increase in exchange rate volatility

Commodity instruments

3

(1)

Decrease in commodity contracts

Equity instruments

2

-

Immaterial

For additional information, see Item 7A of Part II of our Annual Report on Form 10-K for the fiscal year ended May 26, 2024. 

34

Item 4. Controls and Procedures. 

We, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial

Officer, have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule

13a-15(e) under the Securities Exchange Act of 1934). Based on our evaluation, our Chief Executive Officer and Chief Financial

Officer have concluded that, as of August 25, 2024, our disclosure controls and procedures were effective to ensure that information

required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is (1) recorded, processed,

summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and (2)

accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, in a manner

that allows timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act

of 1934) during the quarter ended August 25, 2024, that materially affected, or are reasonably likely to materially affect, our internal

control over financial reporting.

PART II. OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 

The following table sets forth information with respect to shares of our common stock that we purchased during the quarter ended

August 25, 2024:

Period

Total Number 

of Shares

Purchased (a)

Average

Price Paid

Per Share

Total Number of Shares

Purchased as Part of a Publicly

Announced Program (b)

Maximum Number of Shares

that may yet be Purchased

Under the Program (b)

May 27, 2024 -

June 30, 2024

2,015,083

$

67.21

2,015,083

53,643,914

July 1, 2024 -

July 28, 2024

1,679,017

64.81

1,679,017

51,964,897

July 29, 2024 - 

August 25, 2024

839,009

69.09

839,009

51,125,888

Total

4,533,109

$

66.67

4,533,109

51,125,888

(a) The total number of shares purchased includes shares of common stock withheld for the payment of withholding taxes upon the distribution of

deferred option units.

(b) On June 27, 2022, our Board of Directors approved an authorization for the repurchase of up to 100,000,000 shares of our common stock and

terminated the prior authorization. Purchases can be made in the open market or in privately negotiated transactions, including the use of call

options and other derivative instruments, Rule 10b5-1 trading plans, and accelerated repurchase programs. The Board did not specify an

expiration date for the authorization.

Item 5. Other Information. 

Except as set forth below, during the fiscal quarter ended August 25, 2024, no director or officer of the Company adopted or

terminated

 a “Rule 10b5-1 trading arrangement” or “

non-Rule

10b5-1

 trading arrangement,” as each term is defined in Item 408(a) of

Regulation S-K.

During the fiscal quarter ended August 25, 2024,

Jeffrey L. Harmening

, the Company’s

Chairman and Chief Executive Officer

,

adopted

 a “Rule 10b5-1 trading arrangement.” The trading plan, adopted on

July 24, 2024

, relates to the exercise and sale of up to

57,879

 shares of the Company’s common stock that are subject to a company-granted stock option award that expires on July 30,

2025. The plan is scheduled to terminate when all shares subject to the award are exercised and sold or July 31, 2025.

35

PART II. OTHER INFORMATION

Item 6.

Exhibits.

 10.1

Form of Performance Share Unit Award Agreement

.

 10.2

Form of Stock Option Agreement.

 10.3

Form of Restricted Stock Unit Agreement.

 31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 101

Financial Statements from the Quarterly Report on Form 10-Q of the Company for the quarter ended August 25,

2024, formatted in Inline Extensible Business Reporting Language: (i) Consolidated Statements of Earnings; (ii)

Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets; (iv) Consolidated

Statements of Total Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial

Statements.

 104

Cover Page, formatted in Inline Extensible Business Reporting Language and contained in Exhibit 101.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its

behalf by the undersigned thereunto duly authorized.

GENERAL MILLS, INC.

(Registrant)

Date: September 18, 2024

/s/ Mark A. Pallot

Mark A. Pallot

Vice President, Chief Accounting Officer

(Principal Accounting Officer and Duly Authorized Officer)