General Mills Inc. (GIS)

Statement of Cash Flows

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s statement of financial position.

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 Statement of Cash Flows

USD $ in thousands

12 months ended	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014	May 26, 2013
Net earnings, including earnings attributable to redeemable and noncontrolling interests	2,163,000	1,701,100	1,736,800	1,259,400	1,861,300	1,892,500
Depreciation and amortization	618,800	603,600	608,100	588,300	585,400	588,000
After-tax earnings from joint ventures	(84,700)	(85,000)	(88,400)	(84,300)	(89,600)	(98,800)
Distributions of earnings from joint ventures	113,200	75,600	75,100	72,600	90,500	115,700
Stock-based compensation	77,000	95,700	89,800	106,400	108,500	100,400
Deferred income taxes	(504,300)	183,900	120,600	25,300	172,500	81,800
Tax benefit on exercised options	–	(64,100)	(94,100)	(74,600)	(69,300)	(103,000)
Pension and other postretirement benefit plan contributions	(31,800)	(45,400)	(47,800)	(49,500)	(49,700)	(223,200)
Pension and other postretirement benefit plan costs	4,600	35,700	118,100	91,300	124,100	131,200
Divestitures (gain) loss	–	13,500	(148,200)	–	(65,500)	–
Restructuring, impairment, and other exit costs	126,000	117,000	107,200	531,100	(18,800)	(60,200)
Receivables	(122,700)	(69,200)	(6,900)	6,800	(41,000)	(44,600)
Inventories	15,600	(61,500)	(146,100)	(24,200)	(88,300)	18,700
Prepaid expenses and other current assets	(10,700)	16,600	(100)	(50,500)	10,500	(64,300)
Accounts payable	575,300	99,500	318,700	145,800	191,500	263,600
Other current liabilities	84,600	(217,400)	92,600	136,800	(104,900)	297,700
Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures	542,100	(232,000)	258,200	214,700	(32,200)	471,100
Other, net	(182,900)	(86,300)	(105,600)	(137,900)	(76,200)	30,500
Adjustments to reconcile net earnings to net cash provided by operating activities	678,000	612,200	893,000	1,283,400	679,700	1,033,500
Net cash provided by operating activities	2,841,000	2,313,300	2,629,800	2,542,800	2,541,000	2,926,000
Purchases of land, buildings, and equipment	(622,700)	(684,400)	(729,300)	(712,400)	(663,500)	(613,900)
Acquisitions, net of cash acquired	(8,035,800)	–	(84,000)	(822,300)	–	(898,000)
Investments in affiliates, net	(17,300)	3,300	63,900	(102,400)	(54,900)	(40,400)
Proceeds from disposal of land, buildings, and equipment	1,400	4,200	4,400	11,000	6,600	24,200
Proceeds from divestitures	–	17,500	828,500	–	121,600	–
Exchangeable note	–	13,000	21,100	27,900	29,300	16,200
Other, net	(11,000)	(500)	(11,200)	(4,000)	(900)	(3,500)
Net cash (used) provided by investing activities	(8,685,400)	(646,900)	93,400	(1,602,200)	(561,800)	(1,515,400)
Change in notes payable	327,500	962,400	(323,800)	(509,800)	572,900	(44,500)
Issuance of long-term debt	6,550,000	1,072,100	542,500	2,253,200	1,673,000	1,001,100
Payment of long-term debt	(600,100)	(1,000,000)	(1,000,400)	(1,145,800)	(1,444,800)	(542,300)
Proceeds from common stock issued on exercised options	99,300	112,600	171,900	163,700	108,100	300,800
Proceeds from common stock issued	969,900	–	–	–	–	–
Tax benefit on exercised options	–	64,100	94,100	74,600	69,300	103,000
Purchases of common stock for treasury	(601,600)	(1,651,500)	(606,700)	(1,161,900)	(1,745,300)	(1,044,900)
Dividends paid	(1,139,700)	(1,135,100)	(1,071,700)	(1,017,700)	(983,300)	(867,600)
Addition of noncontrolling interest	–	–	–	–	17,600	–
Distributions to noncontrolling and redeemable interest holders	(51,800)	(61,000)	(84,300)	(25,000)	(77,400)	(39,200)
Other, net	(108,000)	(9,100)	(7,200)	(16,100)	(14,200)	(6,600)
Net cash provided (used) by financing activities	5,445,500	(1,645,500)	(2,285,600)	(1,384,800)	(1,824,100)	(1,140,200)
Effect of exchange rate changes on cash and cash equivalents	31,800	(18,500)	(8,100)	(88,900)	(29,200)	(200)
Increase (decrease) in cash and cash equivalents	(367,100)	2,400	429,500	(533,100)	125,900	270,200
Cash and cash equivalents, beginning of year	766,100	763,700	334,200	867,300	741,400	471,200
Cash and cash equivalents, end of year	399,000	766,100	763,700	334,200	867,300	741,400

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).

Item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	General Mills Inc.’s net cash provided by operating activities declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Net cash (used) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	General Mills Inc.’s net cash (used) provided by investing activities declined from 2016 to 2017 and from 2017 to 2018.
Net cash provided (used) by financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	General Mills Inc.’s net cash provided (used) by financing activities increased from 2016 to 2017 and from 2017 to 2018.