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.

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).

The financial data reveals several noteworthy trends and fluctuations across the analyzed periods.

Net Earnings: Net earnings displayed volatility, decreasing from approximately 1.86 billion USD in 2014 to 1.26 billion USD in 2015, then rising to 2.16 billion USD in 2018 before declining again to around 1.79 billion USD in 2019. This pattern suggests variable profitability influenced by internal and external factors.
Depreciation and Amortization: The depreciation and amortization expense remained relatively stable, with a gradual increase from 585.4 million USD in 2014 to 620.1 million USD in 2019, indicating consistent asset base utilization and capital expenditure over time.
Joint Ventures: After-tax earnings from joint ventures were consistently negative, though the magnitude decreased in 2019 to -72 million USD compared to earlier years. Conversely, distributions of earnings from joint ventures fluctuated, peaking at 113.2 million USD in 2018 before falling to 86.7 million USD in 2019. This reflects mixed performance and cash returns from joint ventures.
Stock-Based Compensation: Stock-based compensation generally declined from 108.5 million USD in 2014 to 77 million USD in 2018, with a slight increase to 84.9 million USD in 2019, possibly reflecting changes in employee incentive plans or stock valuation.
Deferred Income Taxes: Deferred income taxes exhibited volatility, including a substantial negative value of -504.3 million USD in 2018, indicating significant tax adjustments or credits affecting the financial position in that year.
Pension and Postretirement Benefit Plans: Contributions to pension plans decreased steadily from -49.7 million USD in 2014 to -28.8 million USD in 2019, while associated costs declined sharply, reaching as low as 6.1 million USD in 2019. This trend suggests a reduction in pension liabilities or changes in plan funding.
Restructuring, Impairment, and Other Exit Costs: These costs fluctuated notably, with a peak in 2015 at 531.1 million USD and elevated levels of around 235.7 million USD in 2019, indicating ongoing organizational restructuring and associated charges.
Working Capital Changes: Accounts receivable and inventories showed mixed trends, with significant decreases in inventories in some years and subsequent increases in others, influencing working capital dynamics. Accounts payable increased substantially in 2018 to 575.3 million USD, marking a rise in short-term obligations. Variations in other current assets and liabilities also contributed to irregular changes in working capital.
Operating Cash Flow: Net cash provided by operating activities remained robust, generally rising from approximately 2.54 billion USD in 2014 to a peak near 2.84 billion USD in 2018, suggesting efficient cash generation despite earnings volatility.
Investing Activities: Investing cash flows were highly variable, notably influenced by large acquisitions such as the 8.04 billion USD net acquisition in 2018. Capital expenditures on property and equipment decreased steadily from 663.5 million USD in 2014 to 537.6 million USD in 2019. Proceeds from divestitures were significant in 2016 at 828.5 million USD but minimal or absent in other years.
Financing Activities: Financing cash flows showed wide fluctuations, including substantial issuance of long-term debt peaking at 6.55 billion USD in 2018, offset partially by debt repayments. Purchases of common stock for treasury declined markedly over time, with a notable drop to just 1.1 million USD in 2019 from over 1.74 billion USD in 2014. Dividends paid steadily increased to 1.18 billion USD in 2019, reflecting a consistent shareholder return strategy.
Cash and Cash Equivalents: Cash levels exhibited considerable variability, with a significant decline from 867.3 million USD at the start of 2015 to 334.2 million USD by end of that year, followed by recovery periods. The ending cash balance settled at 450 million USD in 2019, a moderate increase from the previous year.

Overall, the data suggests that while operating performance and cash flow generation remained relatively strong, the company engaged in substantial acquisitions and restructuring activities, impacting investing and financing cash flows. The variations in debt issuance and repayment, alongside steady dividend payments, indicate dynamic capital management strategies. Changes in working capital and deferred tax assets reflect complexities in operational cycles and tax positions throughout the period.

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General Mills Inc. (NYSE:GIS)

Cash Flow Statement