General Mills Inc. (GIS)
Analysis of Revenues
Revenue Recognition Accounting Policy
General Mills recognizes sales revenue when the shipment is accepted by the customer. Sales include shipping and handling charges billed to the customer and are reported net of consumer coupon redemption, trade promotion and other costs, including estimated allowances for returns, unsalable product, and prompt pay discounts. Sales, use, value-added, and other excise taxes are not recognized in revenue. Coupons are recorded when distributed, based on estimated redemption rates. Trade promotions are recorded based on estimated participation and performance levels for offered programs at the time of sale. General Mills generally does not allow a right of return. However, on a limited case-by-case basis with prior approval, General Mills may allow customers to return product. In limited circumstances, product returned in saleable condition is resold to other customers or outlets. Receivables from customers generally do not bear interest. Terms and collection patterns vary around the world and by channel. The allowance for doubtful accounts represents General Mills’ estimate of probable non-payments and credit losses in the existing receivables, as determined based on a review of past due balances and other specific account data. Account balances are written off against the allowance when General Mills deems the amount is uncollectible.
Source: 10-K (filing date: 2018-06-29).
Revenues as Reported
General Mills Inc., Income Statement, Revenues
USD $ in thousands
|12 months ended||May 27, 2018||May 28, 2017||May 29, 2016||May 31, 2015||May 25, 2014||May 26, 2013|
|Baking mixes and ingredients|
|Super-premium ice cream|
Based on: 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03), 10-K (filing date: 2013-07-03).
|Net sales||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||General Mills Inc.’s net sales declined from 2016 to 2017 but then slightly increased from 2017 to 2018.|