INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

12 Months Ended

May 31, 2020

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES [Abstract]

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURESWe have a 50 percent 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 interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures 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 related balance sheet activity is as follows:

In Millions		May 31, 2020		May 26, 2019
Cumulative investments	$	481.4	$	452.9
Goodwill and other intangibles		460.5		472.1
Aggregate advances included in cumulative investments		279.5		249.0

Joint venture earnings and cash flow activity is as follows:

	Fiscal Year
In Millions		2020		2019		2018
Sales to joint ventures	$	5.9	$	4.2	$	7.4
Net advances (repayments)		48.0		(0.1)		17.3
Dividends received		76.5		86.7		113.2

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

	Fiscal Year
In Millions		2020		2019		2018
Net sales:
CPW	$	1,654.3	$	1,647.7	$	1,734.0
HDJ		391.3		396.2		430.4
Total net sales		2,045.6		2,043.9		2,164.4
Gross margin		785.3		744.4		853.6
Earnings before income taxes		214.0		155.4		216.2
Earnings after income taxes		176.5		111.9		176.7

In Millions		May 31, 2020		May 26, 2019
Current assets	$	870.0	$	895.6
Noncurrent assets		781.4		839.2
Current liabilities		1,365.6		1,517.3
Noncurrent liabilities		104.2		77.1