General Mills Inc. (GIS)

Cash Flow Statement

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 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 (filing date: 2019-06-28), 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).

Cash flow statement 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 increased from 2017 to 2018 but then slightly declined from 2018 to 2019.
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 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
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 2017 to 2018 but then declined significantly from 2018 to 2019.