Investments in Unconsolidated Joint Ventures

12 Months Ended

May 30, 2021

Investments in Unconsolidated Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures [Text Block]

NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

We have a 50 percent interest in Cereal Partners Worldwide (CPW), which manufactures and markets ready-to-eat cereal products in more than 120 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 30, 2021		May 31, 2020
Cumulative investments	$	486.2	$	481.4
Goodwill and other intangibles		505.7		460.5
Aggregate advances included in cumulative investments		294.2		279.5

Joint venture earnings and cash flow activity is as follows:

	Fiscal Year
In Millions		2021		2020		2019
Sales to joint ventures	$	6.7	$	5.9	$	4.2
Net (repayments) advances		(15.5)		48.0		(0.1)
Dividends received		95.2		76.5		86.7

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

	Fiscal Year
In Millions		2021		2020		2019
Net sales:
CPW	$	1,766.8	$	1,654.3	$	1,647.7
HDJ		422.4		391.3		396.2
Total net sales		2,189.2		2,045.6		2,043.9
Gross margin		882.9		785.3		744.4
Earnings before income taxes		247.8		214.0		155.4
Earnings after income taxes		201.7		176.5		111.9

In Millions	May 30, 2021		May 31, 2020
Current assets	$	877.4	$	870.0
Noncurrent assets		927.2		781.4
Current liabilities		1,424.4		1,365.6
Noncurrent liabilities		142.2		104.2