BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

May 26, 2013

BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION [Abstract]

BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 16. BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

We operate in the consumer foods industry. We have three operating segments by type of customer and geographic region as follows: U.S. Retail, 59.7 percent of our fiscal 2013 consolidated net sales; International, 29.3percent of our fiscal 2013 consolidated net sales; and Bakeries and Foodservice, 11.0percent of our fiscal 2013 consolidated net sales.

Our U.S. Retail segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, and drug, dollar and discount chains operating throughout the United States. Our product categories in this business segment include ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks, and a wide variety of organic products including granola bars, cereal, and soup.

Our International segment consists of retail and foodservice businesses outside of the United States. In Canada, our product categories include ready-to-eat cereals, shelf stable and frozen vegetables, dry dinners, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza snacks, refrigerated yogurt, and grain and fruit snacks. In markets outside North America, our product categories include super-premium ice cream and frozen desserts, refrigerated yogurt, snacks, shelf stable and frozen vegetables, refrigerated and frozen dough products, and dry dinners. Our International segment also includes products manufactured in the United States for export, mainly to Caribbean and Latin American markets, as well as products we manufacture for sale to our international joint ventures. Revenues from export activities and franchise fees are reported in the region or country where the end customer is located.

In our Bakeries and Foodservice segment our product categories include ready-to-eat cereals, snacks, refrigerated yogurt, unbaked and fully baked frozen dough products, baking mixes, and flour. Many products we sell are branded to the consumer and nearly all are branded to our customers. We sell to distributors and operators in many customer channels including foodservice, convenience stores, vending, and supermarket bakeries. Substantially all of this segment's operations are located in the United States.

Operating profit for these segments excludes unallocated corporate items and restructuring, impairment, and other exit costs. Unallocated corporate items include corporate overhead expenses, variances to planned domestic employee benefits and incentives, contributions to the General Mills Foundation, and other items that are not part of our measurement of segment operating performance. These include gains and losses arising from the revaluation of certain grain inventories and gains and losses from mark-to-market valuation of certain commodity positions until passed back to our operating segments. These items affecting operating profit are centrally managed at the corporate level and are excluded from the measure of segment profitability reviewed by executive management. Under our supply chain organization, our manufacturing, warehouse, and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. As a result, fixed assets and depreciation and amortization expenses are neither maintained nor available by operating segment.

Our operating segment results were as follows:

	Fiscal Year
In Millions		2013		2012		2011
Net sales:
U.S. Retail	$	10,614.9	$	10,480.2	$	10,163.9
International		5,200.2		4,194.3		2,875.5
Bakeries and Foodservice		1,959.0		1,983.4		1,840.8
Total	$	17,774.1	$	16,657.9	$	14,880.2
Operating profit:
U.S. Retail	$	2,392.9	$	2,295.3	$	2,347.9
International		490.2		429.6		291.4
Bakeries and Foodservice		314.6		286.7		306.3
Total segment operating profit		3,197.7		3,011.6		2,945.6
Unallocated corporate items		326.1		347.6		184.1
Divestitures (gain)		-		-		(17.4)
Restructuring, impairment, and other exit costs		19.8		101.6		4.4
Operating profit	$	2,851.8	$	2,562.4	$	2,774.5

Net sales by class of similar products were as follows:

	Fiscal Year
In Millions		2013		2012		2011
Net sales:
Snacks	$	3,024.0	$	2,649.6	$	2,371.9
Yogurt		2,908.4		2,595.7		1,625.1
Cereal		2,889.2		2,935.2		2,812.6
Convenient meals		2,802.9		2,611.8		2,437.6
Baking mixes and ingredients		1,999.5		1,902.9		1,789.7
Dough		1,944.7		1,925.5		1,895.4
Vegetables		1,089.5		1,082.5		1,095.6
Super-premium ice cream		717.1		664.6		563.7
Other		398.8		290.1		288.6
Total	$	17,774.1	$	16,657.9	$	14,880.2

The following table provides financial information by geographic area:

	Fiscal Year
In Millions		2013		2012		2011
Net sales:
United States	$	12,573.1	$	12,462.1	$	11,987.8
Non-United States		5,201.0		4,195.8		2,892.4
Total	$	17,774.1	$	16,657.9	$	14,880.2
In Millions		May 26, 2013		May 27, 2012
Cash and cash equivalents:
United States	$	26.9	$	25.7
Non-United States		714.5		445.5
Total	$	741.4	$	471.2
In Millions		May 26, 2013		May 27, 2012
Land, buildings, and equipment:
United States	$	2,752.7	$	2,804.9
Non-United States		1,125.4		847.8
Total	$	3,878.1	$	3,652.7