The high operating cash flow in Q2 2022 was primarily driven by **changes in inventories**, which positively impacted cash flow. Although there was a negative impact from changes in accounts payable, the net effect resulted in an overall increase in cash flow, making the operating cash flow notably high for that quarter.  **[0001193125-21-363009_d247642dex99.htm:11]** **[0001193125-21-363624_d266048d10q.htm:5]** **[0001193125-21-363009_d247642dex99.htm:6]** 

Why was Operating Cash Flow so high in Q2 2022?

The steep negative **Acquisition** in **Q1 2022**, totaling **–$1,198.6 million**, was primarily driven by the acquisition of **Tyson Foods’ pet treats business** for **$1.2 billion in cash**. This transaction led to significant accounting entries, including the consolidation of **goodwill of $759.4 million**, **indefinite-lived intangible assets of $330.0 million**, and a **finite-lived customer relationship asset of $40.0 million**, which altogether contributed to the large negative acquisition figure.  **[0001193125-21-279392_d174441d10q.htm:5]** **[0001193125-21-279392_d174441d10q.htm:24]** **[0001193125-21-279392_d174441d10q.htm:25]** 

What contributed to the steep negative Acquisition in Q1 2022?

The documents do not provide a direct explanation for the dramatic improvement in investing cash flows in Q3 2022. However, they do explain that in Q1 2022 the net cash used by investing activities was heavily impacted by significant transactions – notably, an acquisition of Tyson Foods’ pet treats business and increased investments in land, buildings, and equipment ( **[0001193125-21-279392_d174441d10q.htm:25]** **[0001193125-21-278865_d196812dex99.htm:10]** ). The absence of such large, one‐time investments in Q3 2022 is a likely factor behind the much lower cash outflow observed ( **[0001193125-22-082733_d312496d10q.htm:5]** ).

What explains the dramatic improvement in investing cash flows by Q3 2022?

2dbfce296eabb87038d0082dc49e6f2221fa5fb34fa418709fb13053d40f5503

The documents do not provide a definitive explanation for the increase in cash during Q2 2022. While one document outlines potential factors—such as a significant reduction in the current portion of long‐term debt, supply chain pressures, higher inflation costs, and possible investments or acquisitions—as drivers of a big change in cash over the period from November 2020 to November 2021  **[0001193125-21-363009_d247642dex99.htm:10]** **[GIS_229686_20]** **[GIS_229686_21]** , none of these sources directly attribute the increase from **$710.6 million** in Q1 2022 to **$1,021.0 million** in Q2 2022 to a specific cause.

What drove the significant increase in cash during Q2 2022?

General Mills' total assets declined in Q3 2022 by about **$1,505 million**. This decrease was driven primarily by a significant drop in **cash and cash equivalents**—from **$2,754.2 million** down to **$844.4 million** (a decline of **$1,909.8 million**)—which was largely due to **acquisition spending of $1,201.3 million** and **debt repayments of $2,278.2 million**.  **[0001193125-22-082072_d277929dex99.htm:11]**  Additionally, modest decreases in other asset categories (including **other intangible assets**, **land, buildings, and equipment**, and **other assets**) also contributed to the overall decline, even as **goodwill** saw a slight increase.  **[0001193125-22-082072_d277929dex99.htm:10]** 

Why did total assets decline in Q3 2022?

The significant reduction in the current portion of long-term debt for Q2 2022 was primarily driven by the repayment of key debt obligations. Specifically, General Mills repaid **$1,000.0 million** of 3.15% fixed-rate notes due December 15, 2021, using proceeds from issuing **$500.0 million** of 2.25% notes due October 14, 2031. In addition, the company repaid **€500.0 million** of 0.0% fixed-rate notes due November 16, 2021, with financing from issuing **€500.0 million** of 0.125% fixed-rate notes due November 15, 2025.  **[0001193125-21-363009_d247642dex99.htm:10]** **[0001193125-21-363624_d266048d10q.htm:2]** **[0001193125-21-363624_d266048d10q.htm:13]** 

What led to the reduction in the current portion of long-term debt in Q2 2022?

a6d6ed5eae4a6a7287ac31a6ffe4f019154218e3f23bb13435eb818dd304987a

The **spike in Net Sales in Q2 2022** was primarily driven by several factors. **Favorable net price realization and mix** contributed **7 percentage points** to the growth, while **foreign currency exchange** added **1 percentage point** and **acquisition and divestiture** impacts contributed another **1 percentage point**. Notably, the contribution from **organic volume growth was flat**, and the overall boost was partially offset by **supply chain disruptions** and **elevated costs**.  **[0001193125-21-363624_d266048d10q.htm:23]** **[0001193125-21-363009_d247642dex99.htm:1]** 

What contributed to the spike in Net Sales in Q2 2022?

The increase in **EPS - Basic** for Q3 2022 was driven by several factors. Firstly, there was an **11% increase in net earnings**, from **$595.7 million in Q3 2021** to **$660.3 million in Q3 2022**, which was supported by **4% organic net sales growth** and a **one-time divestiture gain of $170.1 million**. Secondly, the **effective tax rate** fell significantly from **21.5%** to **16.3%**, enhancing net earnings. Lastly, the repurchase of **2.6 million shares** reduced the average number of shares outstanding, further boosting the EPS.  **[0001193125-22-082072_d277929dex99.htm:15]** **[0001193125-22-082733_d312496d10q.htm:19]** **[0001193125-22-082072_d277929dex99.htm:1]** **[0001193125-22-082072_d277929dex99.htm:8]** 

What drove the increase in EPS - Basic in Q3 2022?

The documents indicate that **Net Earnings Attributable to Redeemable and Noncontrolling Interests** for GIS fell from **$8.1 million in Q3 2021** to **$2.3 million in Q3 2022**, representing a substantial decline. However, the documents do not provide specific reasons for this change.    They note that such fluctuations typically result from **changes in the performance of subsidiaries or joint ventures with noncontrolling interests**, along with **adjustments related to redeemable interests**.   

Why did Net Earnings Attributable to Redeemable and Noncontrolling Interests fall so sharply in Q3 2022?

In Q3 2022, the drastic change was driven by **actions in the International segment** to boost efficiencies in manufacturing and logistics operations, which resulted in **specific restructuring charges** including a **$1.7 million** expense related to these operations and **$7.6 million** for previously announced restructuring actions. Additionally, the overall decrease compared to Q3 2021 was primarily attributed to the absence of new restructuring actions and a reduction in charges linked to earlier initiatives.  **[0001193125-22-082733_d312496d10q.htm:7]** **[0001193125-22-082072_d277929dex99.htm:8]** 

What drove the drastic change in Restructuring, Impairment, and Other Exit Costs in Q3 2022?

The decline in Income Taxes in Q3 2022 was driven by several factors. **Non-taxable components of divestiture gains** helped reduce the overall tax expense by lowering taxable income, while **favorable changes in earnings mix by jurisdiction** improved the overall effective tax rate. Additionally, the absence of **discrete tax benefits that were present in Q3 2021** further contributed to the reduction.  **[0001193125-22-082733_d312496d10q.htm:26]** **[0001193125-22-082072_d277929dex99.htm:15]** 

What factors contributed to the decline in Income Taxes in Q3 2022?

ab2428895e25775d133c865a1f4158f085b95ec883105dd1596bbf50d1a6b287

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Selling, General, and Administrative Expenses (USD, millions)

Restructuring, Impairment, and Other Exit Costs (USD, millions)

Operating Profit (USD, millions)

Benefit Plan Non-Service Income (USD, millions)

Interest, Net (USD, millions)

Earnings Before Income Taxes and After-Tax Earnings from Joint Ventures (USD, millions)

Income Taxes (USD, millions)

After-Tax Earnings from Joint Ventures (USD, millions)

Net Earnings, Including Earnings Attributable to Redeemable and Noncontrolling Interests (USD, millions)

Net Earnings Attributable to Redeemable and Noncontrolling Interests (USD, millions)

Net Earnings Attributable to General Mills (USD, millions)

Earnings per Share - Basic (USD)

Earnings per Share - Diluted (USD)

761e8e061c36b631bec7caae2af8a88643c3319b4da93be6fa50c7607bb422fe

Cash and cash equivalents (USD, millions)

Receivables (USD, millions)

Inventories (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Land, buildings, and equipment (USD, millions)

Goodwill (USD, millions)

Other intangible assets (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Current portion of long-term debt (USD, millions)

Notes payable (USD, millions)

Other current liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Deferred income taxes (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock, 754.6 shares issued, $ 0.10 par value (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Common stock in treasury, at cost, shares of 152.4 and 146.9 (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total stockholders' equity (USD, millions)

Noncontrolling interests (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

a6f1114cac5b674e7c363b3b8f309b67fdd86fa6e2b5b470dfb9cdeb829bcc4c

Net earnings, including earnings attributable to redeemable and noncontrolling interests (USD, millions)

Depreciation and amortization (USD, millions)

After-tax earnings from joint ventures (USD, millions)

Distributions of earnings from joint ventures (USD, millions)

Stock-based compensation (USD, millions)

Pension and other postretirement benefit plan contributions (USD, millions)

Pension and other postretirement benefit plan costs (USD, millions)

Restructuring, impairment, and other exit costs (USD, millions)

Changes in current assets and liabilities, excluding the effects of acquisition and divestitures (USD, millions)

Other, net - Operating Activities (USD, millions)

Net cash provided by operating activities (USD, millions)

Purchases of land, buildings, and equipment (USD, millions)

Acquisition (USD, millions)

Investments in affiliates, net (USD, millions)

Proceeds from disposal of land, buildings, and equipment (USD, millions)

Other, net - Investing Activities (USD, millions)

Net cash used by investing activities (USD, millions)

Change in notes payable (USD, millions)

Issuance of long-term debt (USD, millions)

Payment of long-term debt (USD, millions)

Proceeds from common stock issued on exercised options (USD, millions)

Purchases of common stock for treasury (USD, millions)

Dividends paid (USD, millions)

Distributions to noncontrolling and redeemable interest holders (USD, millions)

Other, net - Financing Activities (USD, millions)

Net cash used by financing activities (USD, millions)

Effect of exchange rate changes on cash and cash equivalents (USD, millions)

(Decrease) increase in cash and cash equivalents (USD, millions)

Receivables - Cash Flow from changes in current assets and liabilities (USD, millions)

Inventories - Cash Flow from changes in current assets and liabilities (USD, millions)

Prepaid expenses and other current assets - Cash Flow from changes in current assets and liabilities (USD, millions)

Accounts payable - Cash Flow from changes in current assets and liabilities (USD, millions)

Other current liabilities - Cash Flow from changes in current assets and liabilities (USD, millions)

Changes in current assets and liabilities - Cash Flow from changes in current assets and liabilities (USD, millions)

Cash and cash equivalents - beginning of year (USD, millions)

Cash and cash equivalents - end of period (USD, millions)

3cc993856002a880eafd2ca4d6ad1000ba3f57377dd0ffef417b13e107d61fb7

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

90acd1ca2e0e2746f7e3dd8b8d95374c31acb390c45ff716494e8248f6864c55

429d2cf6d5219140d657fe64be8018a87dfeac4877f34e52a37589d6ab4845fd

67696a710dd41468120c125dfa8e2627e6f1c849160ebb6ee5ad9a81f83a1104

North America Retail

- Canada

International

United States

Non-United States

North America Pet

North America Foodservice

Europe & Australia

Asia & Latin America

Corporate and Other

Total Revenue

b53fb00779e4db8e30bb398d63cd5edf596fd98fd87d998c668db4dd0954ce32

7d1bcaf6f76acf6ca7b89eaf6cf518b044410cd287946bacfe04349864098a6e

GENERAL MILLS (GIS)

Financials