SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED NOVEMBER 28, 1999
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
FROM _____ TO _____
Commission file number: 1-1185
GENERAL MILLS, INC.
(Exact name of registrant as specified in its charter)
Delaware 41-0274440
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Number One General Mills Boulevard
Minneapolis, MN 55426
(Mail: P.O. Box 1113) (Mail: 55440)
(Address of principal executive offices) (Zip Code)
(612) 764-2311
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No ___
As of December 23, 1999, General Mills had 301,127,887 shares of its $.10 par
value common stock outstanding (excluding 107,178,777 shares held in treasury).
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
GENERAL MILLS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited) (In Millions, Except per Share Data)
Thirteen Weeks Ended Twenty-Six Weeks Ended
November 28, November 29, November 28, November 29,
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Sales $1,817.2 $1,677.4 $3,390.8 $3,150.5
Costs and Expenses:
Cost of sales 728.2 699.0 1,349.6 1,282.7
Selling, general and
administrative 760.0 667.8 1,437.2 1,301.9
Interest, net 34.1 29.4 66.8 59.2
Unusual items - 51.6 - 51.6
------- ------- ------- -------
Total Costs and Expenses 1,522.3 1,447.8 2,853.6 2,695.4
------- ------- ------- -------
Earnings before Taxes and Earnings
(Losses) from Joint Ventures 294.9 229.6 537.2 455.1
Income Taxes 104.3 83.7 191.6 166.8
Earnings (Losses) from Joint Ventures 3.1 (2.3) 6.6 .3
--------- ---------- --------- -----
Net Earnings $ 193.7 $ 143.6 $ 352.2 $ 288.6
======= ======= ======= =======
Earnings per Share - Basic $ .64 $ .47 $ 1.16 $ .94
======= ===== ======= =======
Average Number of Common Shares 303.5 305.8 303.9 307.0
======= ======= ======= =======
Earnings per Share - Diluted $ .62 $ .46 $ 1.12 $ .92
======= ======= ======= =======
Average Number of Common Shares -
Assuming Dilution 313.1 313.5 313.7 314.1
======= ======= ======= =======
Dividends per Share $ .275 $ .265 $ .550 $ .530
======= ======= ======= ========
See accompanying notes to consolidated condensed financial statements.
</TABLE>
<TABLE>
<CAPTION>
GENERAL MILLS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Millions)
(Unaudited) (Unaudited)
November 28, November 29, May 30,
1999 1998 1999
---------- ---------- ---------
<S> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 70.4 $ 9.5 $ 3.9
Receivables 562.5 468.4 490.6
Inventories:
Valued primarily at FIFO 200.5 206.5 172.2
Valued at LIFO (FIFO value exceeds LIFO by
$32.0, $39.1 and $34.0, respectively) 296.8 231.9 254.5
Prepaid expenses and other current assets 80.4 77.4 83.7
Deferred income taxes 94.8 119.9 97.6
-------- ------- --------
Total Current Assets 1,305.4 1,113.6 1,102.5
-------- ------- --------
Land, Buildings and Equipment, at Cost 2,843.4 2,592.0 2,718.9
Less accumulated depreciation (1,469.5) (1,367.2) (1,424.2)
-------- -------- --------
Net Land, Buildings and Equipment 1,373.9 1,224.8 1,294.7
Intangibles 830.3 621.4 722.0
Other Assets 1,084.7 1,061.0 1,021.5
-------- ------- --------
Total Assets $4,594.3 $4,020.8 $4,140.7
======== ======== ========
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 672.4 $ 638.8 $ 647.4
Current portion of long-term debt 98.7 196.4 90.5
Notes payable 893.7 396.0 524.4
Accrued taxes 167.2 137.0 135.0
Other current liabilities 259.7 282.5 303.0
-------- ------- --------
Total Current Liabilities 2,091.7 1,650.7 1,700.3
Long-term Debt 1,664.7 1,592.8 1,702.4
Deferred Income Taxes 296.2 282.3 288.9
Deferred Income Taxes - Tax Leases 100.5 120.2 111.3
Other Liabilities 184.5 177.5 173.6
-------- ------- --------
Total Liabilities 4,337.6 3,823.5 3,976.5
-------- ------- --------
Stockholders' Equity:
Cumulative preference stock, none issued - - -
Common stock, 408.3 shares issued 679.9 626.8 657.9
Retained earnings 2,013.1 1,749.1 1,827.4
Less common stock in treasury, at cost,
shares of 105.8, 102.3 and 104.3,
respectively (2,307.3) (2,071.5) (2,195.3)
Unearned compensation (66.5) (73.0) (68.9)
Accumulated other comprehensive income (62.5) (34.1) (56.9)
-------- ------- --------
Total Stockholders' Equity 256.7 197.3 164.2
-------- ------- --------
Total Liabilities and Equity $4,594.3 $4,020.8 $4,140.7
======== ======== ========
See accompanying notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GENERAL MILLS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited) (In Millions)
Twenty-Six Weeks Ended
November 28, November 29,
1999 1998
<S> <C> <C>
Cash Flows - Operating Activities:
Net earnings $352.2 $288.6
Adjustments to reconcile earnings to cash flow:
Depreciation and amortization 97.7 94.4
Deferred income taxes 12.1 12.1
Change in current assets and liabilities (113.4) (112.8)
Unusual items - 51.6
Other, net (24.8) (22.5)
----- -----
Cash provided by continuing operations 323.8 311.4
Cash used by discontinued operations (1.4) (2.1)
----- -----
Net Cash Provided by Operating Activities 322.4 309.3
----- -----
Cash Flows - Investment Activities:
Purchases of land, buildings and equipment (132.7) (123.8)
Investments in businesses, intangibles and
affiliates, net of investment returns
and dividends (201.9) (8.8)
Purchases of marketable investments (5.5) (4.8)
Proceeds from sale of marketable investments 5.9 17.7
Other, net 9.7 (11.6)
----- -----
Net Cash Used by Investment Activities (324.5) (131.3)
----- -----
Cash Flows - Financing Activities:
Change in notes payable 369.7 129.2
Issuance of long-term debt 54.2 56.9
Payment of long-term debt (78.0) (52.5)
Common stock issued 60.5 32.0
Purchases of common stock for treasury (162.9) (169.7)
Dividends paid (167.2) (163.1)
Other, net (7.7) (7.7)
----- -----
Net Cash Used by Financing Activities 68.6 (174.9)
----- ------
Increase in Cash and Cash Equivalents $ 66.5 $ 3.1
====== =====
See accompanying notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
GENERAL MILLS, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(1) Background
These financial statements do not include certain information and footnotes
required by generally accepted accounting principles for complete financial
statements. However, in the opinion of management, all adjustments considered
necessary for a fair presentation have been included and are of a normal
recurring nature. Operating results for the twenty-six weeks ended November 28,
1999 are not necessarily indicative of the results that may be expected for the
fiscal year ending May 28, 2000.
These statements should be read in conjunction with the financial statements and
footnotes included in our annual report for the year ended May 30, 1999. The
accounting policies used in preparing these financial statements are the same as
those described in our annual report.
Certain amounts in the prior year financial statements have been reclassified to
conform to the current year presentation.
(2) Acquisitions
On June 30, 1999, we acquired certain grain elevators and related assets from
Koch Agriculture Company. On August 12, 1999, we acquired Gardetto's Bakery,
Inc. of Milwaukee, Wisconsin. Gardetto's is a leading national marketer of baked
snack mixes and flavored pretzels.
The aggregate purchase price of these acquisitions, both of which were accounted
for using the purchase method, totaled approximately $163 million, subject to
adjustments. Goodwill associated with the Gardetto's acquisition is being
amortized on a straight-line basis over 40 years.
(3) Unusual Items
In last year's second quarter, we recorded restructuring charges of $51.6
million pretax, $32.3 million after tax ($.10 per diluted share. The
restructuring actions primarily reflected further streamlining of our supply
chain as part of the broad consolidation of these activities announced in May
1998. Actions included consolidating manufacturing of certain products into
fewer locations, and consolidating warehouse, distribution and sales activities
across the company's packaged food, foodservice and milling operations. In
addition, the second-quarter charge included our share of restructuring by Snack
Ventures Europe, our joint venture with PepsiCo, to improve its manufacturing
cost structure. Slightly more than half of the total charge reflected write-down
of assets; the remaining cash portion was primarily related to severance and
asset redeployment expenses. These restructuring activities were substantially
completed by the end of fiscal 1999.
(4) Statements of Cash Flows
During the first six months, we made interest payments of $65.6 million (net of
amount capitalized) and paid $132.0 million in income taxes.
<PAGE>
(5) Comprehensive Income
The following table summarizes total comprehensive income for the periods
presented (in millions):
Thirteen Weeks Ended Twenty-Six Weeks Ended
Nov. 28, Nov. 29, Nov. 28, Nov. 29,
1999 1998 1999 1998
Net Earnings $193.7 $143.6 $352.2 $288.6
Other comprehensive
income (loss):
Unrealized gain on
securities (2.0) 1.3 (4.2) 4.0
Foreign currency
translation adjustments .9 4.4 (1.4) 3.0
------- ------- ------ ------
(1.1) 5.7 (5.6) 7.0
------- ------- ------ ------
Total comprehensive income $192.6 $149.3 $346.6 $295.6
====== ====== ====== ======
(6) Changes in Capital Stock
On September 27, 1999, the Board of Directors declared a two-for-one stock split
effected in the form of a 100 percent stock dividend whereby each shareholder
received one additional share of General Mills common stock on November 8, 1999,
for each share owned at the close of business on October 8, 1999. Prior year
information throughout these financial statements is restated for the stock
split, to present all data on a consistent and comparable basis.
(7) Subsequent Event
On December 15, 1999, we announced that we had signed an agreement to purchase
Small Planet Foods, a leading producer of organic food products based in
Sedro-Woolley, Washington. Small Planet's Cascadian Farm brand consists of
organic frozen fruits, vegetables, juices and entrees while the company's Muir
Glen line includes organic canned tomatoes, pasta sauces, salsa and condiments.
Combined annual sales for these organic brands total approximately $60 million.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Continuing operations generated $12.4 million more cash in the first half of
fiscal 2000 than in the same prior-year period. The increase in cash provided by
operations as compared to last year was primarily caused by a $13.0 million
increase in cash from operations, after adjustment for non-cash items.
Fiscal 2000 fixed asset expenditures are estimated to be approximately $270 to
$285 million. During the first six months, fixed asset expenditures totaled
$132.7 million. Total capital investments, including investments in joint
ventures, are estimated to be approximately $300 to $330 million.
Our short-term outside financing is obtained through private placement of
commercial paper and bank notes. Our level of notes payable fluctuates based on
cash flow needs.
Our long-term outside financing is obtained primarily through our medium-term
note program. Activity through six months under this program consisted of the
issuance of $49.0 million in notes and debt payments of $73.3 million.
RESULTS OF OPERATIONS
All per share references in the following discussion are based on diluted
shares, except where indicated, and all prior year per share data have been
restated for the two-for-one stock split effective November 8, 1999.
Sales for the second quarter ended November 28, 1999, totaled $1,817 million, up
8 percent from the prior year. Earnings per share of 62 cents for the second
quarter of fiscal 2000, were up 11 percent from 56 cents per share before
unusual items earned in the same period last year. Basic earnings per share of
64 cents for the second quarter were up 10 percent from 58 cents before unusual
items. After-tax earnings grew 10 percent to $193.7 million.
First half sales of $3,391 million were up 8 percent from the first six months
one year ago. Through six months, earnings per share totaled $1.12, up 10
percent from $1.02 earned before unusual items last year. Basic earnings per
share of $1.16 for the first half were also up 10 percent from $1.05 before
unusual items. Earnings after tax also grew 10 percent before unusual items to
$352.2 million.
General Mills' net earnings for last year's second quarter included a
restructuring charge of $32.3 million after-tax, or 10 cents per diluted share,
primarily related to streamlining supply chain activities (See Note (3) Unusual
Items). Including this unusual item, earnings per share totaled 46 cents in last
year's second quarter, and 92 cents in last year's first half.
With the 8 percent increase in second-quarter shipments, General Mills' U.S.
foods unit volume was up 7 percent through the first six months of fiscal 2000.
This strong growth included incremental volume from three recently acquired
businesses: Lloyd's refrigerated entrees (acquired January 1999); Farmhouse
Foods side dishes (February 1999) and Gardetto's baked snack foods (August
1999). Excluding acquired businesses, General Mills' U.S. food volume was up 5
percent for the quarter and 4 percent through six months.
Big G cereal unit volume grew 5 percent in the second quarter. This growth
included good gains by major established brands including Cheerios, Lucky Charms
and Golden Grahams. In addition, the quarter included significant volume from
new products. Honey Nut Chex, which reached nationwide distribution in March
1999, continues to record consistently strong volume and market shares. Nesquik
and Sunrise cereals, launched in the spring of 1999, contributed incremental
volume. The second quarter also included shipments of Millenios cereal, a
limited-time Cheerios variety, and the nationwide launch of Brown Sugar and Oat
Total cereal, a new variety added to the Total brand franchise. Through six
months, Big G's share of cereal category pound volume in all Nielsen-measured
outlets was up 1.5 percentage points to 27 percent, and its share of category
dollar sales increased to more than 32 percent.
Combined unit volume for the company's other U.S. foods businesses grew 9
percent in the quarter. Second-quarter volume for Betty Crocker products
declined 1 percent in total. The new Chicken Helper line continued to generate
strong volume, but overall dinner mix shipments were lower due to sales declines
in established Hamburger Helper varieties. A revised marketing program designed
to restore dinner mix growth will be implemented in the second half. Volume for
Betty Crocker desserts and family flour was also lower in the quarter,
reflecting the impact of significantly higher competitive marketing spending.
Total unit volume for the company's convenience foods businesses (snacks and
yogurt) grew 18 percent in the second quarter. Snacks performance included
double-digit growth for fruit snacks, powered by strong introductory shipments
of Pokemon fruit rolls. Volume for Chex Mix snacks grew 17 percent in the
quarter, and the recently acquired Gardetto's business contributed additional
volume. Yogurt volume continued to grow at a double-digit pace, fueled by solid
gains from established Yoplait product lines and the continued success of new
Yoplait Go-Gurt, which reached nationwide distribution during the quarter.
Combined dollar share for Yoplait and Colombo grew to a record 34 percent for
the first half, up 4 percentage points. In addition to these retail business
gains, second-quarter unit volume for established Foodservice businesses grew 6
percent, and including Gardetto's, Foodservice volume grew 13 percent.
Unit volume for the company's international operations was up 6 percent in the
second quarter and 4 percent through the first half. Cereal Partners Worldwide
(CPW), the company's joint venture with Nestle, posted an 11 percent volume
increase for the quarter, led by strong performance in the United Kingdom,
France, Spain, Portugal and Mexico. CPW's combined share of its worldwide
markets for calendar 1999 to date grew to 20 percent. Total volume for Snack
Ventures Europe (SVE), the company's joint venture with PepsiCo, increased 4
percent in the second quarter, despite continued market weakness in Russia. In
SVE's core western European markets only, volume growth was 6 percent.
Through the first six months, international joint ventures contributed $6.6
million to General Mills' after-tax earnings, up from approximately breakeven in
last year's first half.
In Canada, second-quarter volume was up 1 percent overall, as 5 percent growth
in cereal volume offset softness on certain Betty Crocker products. Honey Nut
Chex cereal was successfully introduced during the quarter and General Mills'
cereal share in Canada grew to 17 percent for the year-to-date.
During the second quarter, General Mills repurchased 2.5 million shares of
common stock under the company's ongoing program. Through the first six months
of fiscal 2000, a total of 4.1 million shares have been repurchased at an
average price of approximately $39 per share. Average diluted shares outstanding
for the quarter totaled 313.1 million, compared to 313.5 million in the prior
year. Interest expense of $34.1 million in the quarter was up from the prior
year, reflecting higher rates and higher debt levels associated with
acquisitions and share repurchase activity.
Our effective tax rates (excluding unusual items) for the second quarter and
first half of fiscal 2000 were 35.4 percent and 35.7 percent, respectively,
compared to 36.6 percent and 36.7 percent in last year's second quarter and
first half. Our reported tax rates for the first six months of fiscal 2000 and
1999 were 35.7 percent and 36.7 percent, respectively.
YEAR 2000
We have devoted significant resources throughout the company to minimize the
risk of potential disruption from year 2000 issues related to computers or other
equipment with date-sensitive software and embedded chip systems. If we, or our
significant customers, suppliers or other third parties fail to correct year
2000 issues during the year 2000 transition period, our ability to operate our
businesses could be adversely affected. However, based on our assessment of
operations through January 6, 2000, we have not experienced any significant year
2000 issues.
We assessed, inventoried and classified year 2000 issues on all of our
information systems infrastructure and non-technical assets (e.g., plant
production equipment). Information systems that were year 2000 deficient were
modified, upgraded or replaced and tested for compliance. All non-I.T. assets
(including production equipment) were tested and certified year 2000 compliant.
The costs of addressing internal system year 2000 issues totaled approximately
$26 million, all of which have been incurred, and which were not material to our
financial position, results of operations or cash flows.
We have surveyed significant customers, suppliers and third parties critical to
our business operations to determine their year 2000 compliance.
Cross-functional planning teams assessed the associated risks and developed
contingency plans including identifying and securing alternate suppliers,
adjusting manufacturing schedules, stockpiling of certain materials and
equipment, contracting additional staff, procuring backup generators, and other
measures considered appropriate by management. We also established backup manual
procedures similar to existing procedures developed for our disaster recovery
plan. We will continue to modify these plans through the year 2000 transition
period as additional information becomes available.
<PAGE>
PART II
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The Annual Meeting of Stockholders was held on September 27, 1999. The
voting results reported below do not reflect the stock split effected
November 8, 1999 (see Item 6(b)).
(b) All directors nominated were elected at the Annual Meeting.
(c) For the election of directors, the results were as follows:
Stephen R. Demeritt For 132,747,981
Withheld 337,708
Livio D. DeSimone For 132,730,919
Withheld 354,770
William T. Esrey For 132,684,436
Withheld 401,253
Raymond V. Gilmartin For 132,675,130
Withheld 410,559
Judith R. Hope For 132,662,702
Withheld 422,987
Robert L. Johnson For 132,587,424
Withheld 498,265
Heidi G. Miller For 132,597,810
Withheld 487,879
Michael D. Rose For 132,649,538
Withheld 436,151
Stephen W. Sanger For 132,738,444
Withheld 347,245
A. Michael Spence For 132,683,996
Withheld 401,693
Dorothy A. Terrell For 132,705,391
Withheld 380,298
Raymond G. Viault For 132,744,065
Withheld 341,624
C. Angus Wurtele For 132,607,690
Withheld 477,999
The ratification of the appointment of KPMG LLP as auditors for fiscal 2000 was
approved:
For: 132,745,000
Against: 177,780
Abstain: 162,909
<PAGE>
Item 5. Other Information.
This report contains certain forward-looking statements which are based on
management's current views and assumptions regarding future events and financial
performance. These statements are qualified by reference to the section
"Cautionary Statement Relevant to Forward-Looking Information" in Item 1 of our
Annual Report on Form 10-K for the fiscal year ended May 30, 1999, which lists
important factors that could cause actual results to differ materially from
those discussed in this report.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 11 Statement of Computation of Earnings per Share.
Exhibit 12 Statement of Ratio of Earnings to Fixed Charges.
Exhibit 27 Financial Data Schedule.
(b) Reports on Form 8-K
On September 29, 1999, the Company filed a Form 8-K reporting the
September 27, 1999, authorization by the Board of Directors for a
2-for-1 split of General Mills' common stock effected in the form of a
100% stock dividend. Each stockholder received one additional share of
common stock for each share owned as of the close of business on
October 8, 1999. One additional stock certificate was mailed to each
such stockholder on November 8, 1999. The stock split does not result
in any gain or loss for federal income tax purposes.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENERAL MILLS, INC.
(Registrant)
Date January 7, 2000 /s/ S. S. Marshall
--------------- ----------------------------------
S. S. Marshall
Senior Vice President,
General Counsel
Date January 7, 2000 /s/ K. L. Thome
--------------- --------------------------------
K. L. Thome
Senior Vice President,
Financial Operations
Exhibit 11
GENERAL MILLS, INC.
COMPUTATION OF EARNINGS PER SHARE
(In Millions, Except per Share Data)
<TABLE>
<CAPTION>
Thirteen Weeks Ended Twenty-Six Weeks Ended
November 28, November 29, November 28, November 29,
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Earnings $193.7 $ 143.6 $352.2 $288.6
====== ======= ====== ======
Average Number of Common Shares -
Basic EPS (a) 303.5 305.8 303.9 307.0
Incremental Share Effect from:
-Stock options (b) 9.5 7.6 9.7 7.0
-Restricted stock, stock rights
and puts .1 .1 .1 .1
------- ------- ------ --------
Average Number of Common Shares -
Diluted EPS 313.1 313.5 313.7 314.1
===== ===== ===== =====
Earnings per Share - Basic $.64 $.47 $1.16 $.94
==== ==== ===== ====
Earnings per Share - Diluted $.62 $.46 $1.12 $.92
==== ==== ===== ====
Notes to Exhibit 11:
(a) Computed as the weighted average of net shares outstanding on stock-exchange
trading days.
(b) Incremental shares from stock options are computed by the "treasury stock"
method. This method first determines the number of shares issuable under
stock options that had an option price below the average market price for
the period, and then deducts the number of shares that could have been
repurchased with the proceeds of options exercised.
</TABLE>
Exhibit 12
<TABLE>
<CAPTION>
RATIO OF EARNINGS TO FIXED CHARGES
Twenty-Six Weeks Ended Fiscal Year Ended
November 28, November 29, May 30, May 31, May 25, May 26, May 28,
1999 1998 1999 1998 1997 1996 1995
--------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Ratio of Earnings
to Fixed Charges 7.77 7.32 6.67 5.63 6.54 6.94 4.10
For purposes of computing the ratio of earnings to fixed charges, earnings
represent pretax income from continuing operations, plus pretax earnings or
losses of joint ventures plus fixed charges (net of capitalized interest). Fixed
charges represent interest (whether expensed or capitalized) and one-third (the
proportion deemed representative of the interest factor) of rents of continuing
operations.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from our
Form 10-Q for the twenty-six week period ended November 28, 1999, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-28-2000
<PERIOD-START> MAY-31-1999
<PERIOD-END> NOV-28-1999
<CASH> 70,400,000
<SECURITIES> 0
<RECEIVABLES> 562,500,000
<ALLOWANCES> 0
<INVENTORY> 497,300,000
<CURRENT-ASSETS> 1,305,400,000
<PP&E> 2,843,400,000
<DEPRECIATION> (1,469,500,000)
<TOTAL-ASSETS> 4,594,300,000
<CURRENT-LIABILITIES> 2,091,700,000
<BONDS> 1,664,700,000
0
0
<COMMON> 679,900,000
<OTHER-SE> (423,200,000)
<TOTAL-LIABILITY-AND-EQUITY> 4,594,300,000
<SALES> 3,390,800,000
<TOTAL-REVENUES> 3,390,800,000
<CGS> 1,349,600,000
<TOTAL-COSTS> 1,349,600,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,800,000
<INCOME-PRETAX> 537,200,000
<INCOME-TAX> 191,600,000
<INCOME-CONTINUING> 352,200,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 352,200,000
<EPS-BASIC> 1.16 <F1>
<EPS-DILUTED> 1.12 <F1>
<FN>
On September 27, 1999, the company's board of directors declared a 2-for-1
split of General Mills common stock for shareholders of record on October 8,
1999, payable November 8, 1999.
All share and per share data have been adjusted to reflect the stock split.
Prior Financial Data Schedules have not been restated for the stock split.
</FN>
</TABLE>
