INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

12 Months Ended

May 29, 2016

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES [Abstract]

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

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 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 and markets Häagen-Dazsice cream products and frozen novelties.

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

Joint venture related balance sheet activity follows:

In Millions		May 29, 2016		May 31, 2015
Cumulative investments	$	518.9	$	530.6
Goodwill and other intangibles		469.2		465.1
Aggregate advances included in cumulative investments		300.3		390.3

Joint venture earnings and cash flow activity follows:

	Fiscal Year
In Millions		2016		2015		2014
Sales to joint ventures	$	10.5	$	11.6	$	12.1
Net advances (repayments)		(63.9)		102.4		54.9
Dividends received		75.1		72.6		90.5

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

	Fiscal Year
In Millions		2016		2015		2014
Net sales:
CPW	$	1,674.8	$	1,894.5	$	2,107.9
HDJ		369.4		370.2		386.9
Total net sales		2,044.2		2,264.7		2,494.8
Gross margin		867.6		925.4		1,030.3
Earnings before income taxes		234.8		220.9		219.1
Earnings after income taxes		186.7		170.7		168.8

In Millions		May 29, 2016		May 31, 2015
Current assets	$	814.1	$	800.1
Noncurrent assets		959.9		962.1
Current liabilities		1,457.3		1,484.8
Noncurrent liabilities		81.7		118.2