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INVESTMENTS IN JOINT VENTURES

12 Months Ended

May 29, 2011

Notes To Consolidated Financial Statements

We have a 50 percent equity interest in Cereal Partners Worldwide (CPW), which manufactures and markets ready-to-eat cereal products in more than 130 countries and republics outside the United States and Canada. CPW also markets cereal bars in several European countries and manufactures private label cereals for customers in the United Kingdom. We have guaranteed a portion of CPW's debt and its pension obligation in the United Kingdom.

We also have a 50 percent equity interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures, distributes, and markets Häagen-Dazs ice cream products and frozen novelties.

Results from our CPW and HDJ joint ventures are reported for the 12 months ended March 31.

NOTE 5. INVESTMENTS IN JOINT VENTURES

We also have a 50 percent equity interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures, distributes, and markets Häagen-Dazs ice cream products and frozen novelties.

Results from our CPW and HDJ joint ventures are reported for the 12 months ended March 31.

Joint venture balance sheet activity follows:

In Millions		May 29, 2011		May 30, 2010
Cumulative investments	$	519.1	$	398.1
Goodwill and other intangibles		597.1		512.6
Aggregate advances		293.3		238.2

Joint venture earnings and cash flow activity follows:

	Fiscal Year
In Millions		2011		2010		2009
Sales to joint ventures	$	10.2	$	10.7	$	14.2
Net advances (repayments)		1.8		128.1		(8.2)
Dividends received		72.7		88.0		68.5

Summary combined financial information for the joint ventures on a 100 percent basis follows:

	Fiscal Year
In Millions		2011		2010		2009
Net sales	$	2,444.9	$	2,360.0	$	2,280.0
Gross margin		1,066.3		1,053.2		873.5
Earnings before income taxes		233.4		251.2		234.7
Earnings after income taxes		164.2		202.3		175.3

In Millions		May 29, 2011		May 30, 2010
Current assets	$	904.7	$	731.7
Noncurrent assets		1,138.0		907.3
Current liabilities		1,690.1		1,322.0
Noncurrent liabilities		103.3		112.1

- Definition

Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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