Name: General Mills Inc. (NYSE:GIS) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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General Mills Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014
Net earnings, including earnings attributable to redeemable and noncontrolling interests	1,786,200)	2,163,000)	1,701,100)	1,736,800)	1,259,400)	1,861,300)
Depreciation and amortization	620,100)	618,800)	603,600)	608,100)	588,300)	585,400)
After-tax earnings from joint ventures	(72,000)	(84,700)	(85,000)	(88,400)	(84,300)	(89,600)
Distributions of earnings from joint ventures	86,700)	113,200)	75,600)	75,100)	72,600)	90,500)
Stock-based compensation	84,900)	77,000)	95,700)	89,800)	106,400)	108,500)
Deferred income taxes	93,500)	(504,300)	183,900)	120,600)	25,300)	172,500)
Tax benefit on exercised options	—)	—)	(64,100)	(94,100)	(74,600)	(69,300)
Pension and other postretirement benefit plan contributions	(28,800)	(31,800)	(45,400)	(47,800)	(49,500)	(49,700)
Pension and other postretirement benefit plan costs	6,100)	4,600)	35,700)	118,100)	91,300)	124,100)
Divestitures (gain) loss	30,000)	—)	13,500)	(148,200)	—)	(65,500)
Restructuring, impairment, and other exit costs	235,700)	126,000)	117,000)	107,200)	531,100)	(18,800)
Receivables	(42,700)	(122,700)	(69,200)	(6,900)	6,800)	(41,000)
Inventories	53,700)	15,600)	(61,500)	(146,100)	(24,200)	(88,300)
Prepaid expenses and other current assets	(114,300)	(10,700)	16,600)	(100)	(50,500)	10,500)
Accounts payable	162,400)	575,300)	99,500)	318,700)	145,800)	191,500)
Other current liabilities	(66,600)	84,600)	(217,400)	92,600)	136,800)	(104,900)
Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures	(7,500)	542,100)	(232,000)	258,200)	214,700)	(32,200)
Other, net	(27,900)	(182,900)	(86,300)	(105,600)	(137,900)	(76,200)
Adjustments to reconcile net earnings to net cash provided by operating activities	1,020,800)	678,000)	612,200)	893,000)	1,283,400)	679,700)
Net cash provided by operating activities	2,807,000)	2,841,000)	2,313,300)	2,629,800)	2,542,800)	2,541,000)
Purchases of land, buildings, and equipment	(537,600)	(622,700)	(684,400)	(729,300)	(712,400)	(663,500)
Acquisitions, net of cash acquired	—)	(8,035,800)	—)	(84,000)	(822,300)	—)
Investments in affiliates, net	100)	(17,300)	3,300)	63,900)	(102,400)	(54,900)
Proceeds from disposal of land, buildings, and equipment	14,300)	1,400)	4,200)	4,400)	11,000)	6,600)
Proceeds from divestitures	26,400)	—)	17,500)	828,500)	—)	121,600)
Exchangeable note	—)	—)	13,000)	21,100)	27,900)	29,300)
Other, net	(59,700)	(11,000)	(500)	(11,200)	(4,000)	(900)
Net cash (used) provided by investing activities	(556,500)	(8,685,400)	(646,900)	93,400)	(1,602,200)	(561,800)
Change in notes payable	(66,300)	327,500)	962,400)	(323,800)	(509,800)	572,900)
Issuance of long-term debt	339,100)	6,550,000)	1,072,100)	542,500)	2,253,200)	1,673,000)
Payment of long-term debt	(1,493,800)	(600,100)	(1,000,000)	(1,000,400)	(1,145,800)	(1,444,800)
Proceeds from common stock issued on exercised options	241,400)	99,300)	112,600)	171,900)	163,700)	108,100)
Proceeds from common stock issued	—)	969,900)	—)	—)	—)	—)
Tax benefit on exercised options	—)	—)	64,100)	94,100)	74,600)	69,300)
Purchases of common stock for treasury	(1,100)	(601,600)	(1,651,500)	(606,700)	(1,161,900)	(1,745,300)
Dividends paid	(1,181,700)	(1,139,700)	(1,135,100)	(1,071,700)	(1,017,700)	(983,300)
Investments in redeemable interest	55,700)	—)	—)	—)	—)	17,600)
Distributions to noncontrolling and redeemable interest holders	(38,500)	(51,800)	(61,000)	(84,300)	(25,000)	(77,400)
Other, net	(31,200)	(108,000)	(9,100)	(7,200)	(16,100)	(14,200)
Net cash provided (used) by financing activities	(2,176,400)	5,445,500)	(1,645,500)	(2,285,600)	(1,384,800)	(1,824,100)
Effect of exchange rate changes on cash and cash equivalents	(23,100)	31,800)	(18,500)	(8,100)	(88,900)	(29,200)
Increase (decrease) in cash and cash equivalents	51,000)	(367,100)	2,400)	429,500)	(533,100)	125,900)
Cash and cash equivalents, beginning of year	399,000)	766,100)	763,700)	334,200)	867,300)	741,400)
Cash and cash equivalents, end of year	450,000)	399,000)	766,100)	763,700)	334,200)	867,300)

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

Operating cash flow demonstrates consistent strength and stability over the six-year period, with net cash provided by operating activities remaining within a range of 2.3 billion to 2.8 billion US dollars. While net earnings exhibited volatility—peaking at 2.16 billion US dollars in 2018 before declining to 1.79 billion US dollars in 2019—the operating cash flow remained resilient, suggesting that non-cash adjustments and working capital management effectively buffered the impact of earnings fluctuations.

Operating Cash Flow Drivers: Depreciation and amortization remained remarkably steady, increasing marginally from 585.4 million US dollars in 2014 to 620.1 million US dollars in 2019. Restructuring and impairment costs showed a significant spike in 2015 at 531.1 million US dollars and a continuing upward trend toward 235.7 million US dollars by 2019, indicating periodic organizational realignments. Working capital fluctuations were most pronounced in 2018, where a substantial increase in accounts payable contributed to a high operating cash inflow.
Investing Activities and Capital Allocation: Capital expenditures for land, buildings, and equipment were maintained at a consistent level, averaging between 500 million and 730 million US dollars annually. A pivotal shift occurred in 2018 with a massive acquisition totaling 8.03 billion US dollars, which represents the most significant investing outflow in the analyzed period. This was partially offset in 2016 by a substantial divestiture proceeds inflow of 828.5 million US dollars, reflecting a strategy of portfolio optimization through selective acquisitions and divestments.
Financing Strategies and Shareholder Returns: The financing profile is characterized by a heavy reliance on debt issuance to fund strategic growth. In 2018, the issuance of long-term debt surged to 6.55 billion US dollars to support the aforementioned acquisition. Shareholder returns remained a priority, as evidenced by a steady annual increase in dividends paid, rising from 983.3 million US dollars in 2014 to 1.18 billion US dollars in 2019. Treasury stock purchases were aggressive between 2014 and 2018, though this activity ceased almost entirely by 2019, with purchases dropping to 1.1 million US dollars.

The overall cash position reflects a balanced cycle of utilizing strong operational inflows to cover essential capital expenditures and dividend obligations. The significant volatility in investing and financing activities during 2018 illustrates a strategic pivot toward expansion funded by the debt markets rather than internal cash reserves. By 2019, the company returned to a more conservative financing posture, reducing debt issuance and halting significant share buybacks to stabilize the balance sheet.

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