Business Segment and Geographic Information

9 Months Ended

Feb. 27, 2022

Business Segment and Geographic Information [Abstract]

Business Segment and Geographic Information

(17) Business Segment and Geographic Information

We operate in the packaged foods industry. In the third quarter of fiscal 2022, we completed a new organization structure to streamline our global operations. This global reorganization required us to reevaluate our operating segments. Under our new organization structure, our chief operating decision maker assesses performance and makes decisions about resources to be allocated to our operating segments as follows: North America Retail; International; Pet; and North America Foodservice.

We have restated our net sales by segment and segment operating profit to reflect our new operating segments. These segment changes had no effect on previously reported consolidated net sales, operating profit, net earnings attributable to General Mills, or earnings per share.

Our North America Retail operating segment includes convenience store businesses from our former Convenience Stores & Foodservice segment. Within our North America Retail operating segment, our former U.S. Cereal operating unit and U.S. Yogurt operating unit have been combined into the U.S. Morning Foods operating unit. Additionally, the U.S. Meals & Baking Solutions operating unit combines the former U.S. Meals & Baking operating unit with certain businesses from the U.S. Snacks operating unit. The Canada operating unit excludes Canada foodservice businesses which are now included in our North America Foodservice operating segment. The resulting North America Foodservice operating segment exclusively includes our foodservice business. Our International operating segment combines our former Europe & Australia and Asia & Latin America operating segments. Our Pet operating segment is unchanged.

Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. Our product categories in this business segment include ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, snack bars, fruit snacks, savory snacks, and a wide variety of organic products including ready-to-eat cereal, frozen and shelf-stable vegetables, meal kits, fruit snacks, snack bars, and refrigerated yogurt.

Our International operating segment consists of retail and foodservice businesses outside of the United States and Canada. Our product categories include super-premium ice cream and frozen desserts, meal kits, refrigerated and frozen dough products, salty snacks, snack bars, dessert and baking mixes, and shelf stable vegetables. We also sell super-premium ice cream and frozen desserts directly to consumers through owned retail shops. 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 or franchisee is located.

Our Pet operating segment includes pet food products sold primarily in the United States and Canada in national pet superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and veterinary clinics and hospitals. Our product categories include dog and cat food (dry foods, wet foods, and treats) made with whole meats, fruits, vegetables and other high-quality natural ingredients. Our tailored pet product offerings address specific dietary, lifestyle, and life-stage needs and span different product types, diet types, breed sizes for dogs, lifestages, flavors, product functions, and textures and cuts for wet foods.

Our North America Foodservice segment consists of foodservice businesses in the United States and Canada. Our major product categories in our North America Foodservice operating segment are ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, baking mixes, and bakery 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, vending, and supermarket bakeries.

Operating profit for these segments excludes unallocated corporate items, gain or loss on divestitures, and restructuring, impairment, and other exit costs. Unallocated corporate items include corporate overhead expenses, variances to planned North American employee benefits and incentives, certain charitable contributions, restructuring initiative project-related costs, 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:

		Quarter Ended				Nine-Month Period Ended
In Millions	Feb. 27, 2022			Feb. 28, 2021	Feb. 27, 2022		Feb. 28, 2021
Net sales:
North America Retail	$	2,811.9	$	2,786.0	$	8,567.1	$	8,539.3
International		721.0		939.8		2,566.0		2,710.9
Pet		567.7		436.3		1,649.1		1,288.0
North America Foodservice		437.1		357.9		1,319.4		1,065.2
Total	$	4,537.7	$	4,520.0	$	14,101.6	$	13,603.4
Operating profit:
North America Retail	$	611.5	$	628.8	$	1,935.5	$	2,076.8
International		35.9		41.4		155.9		180.8
Pet		110.6		102.3		357.3		311.9
North America Foodservice		35.2		40.6		174.9		137.6
Total segment operating profit	$	793.2	$	813.1	$	2,623.6	$	2,707.1
Unallocated corporate items		140.9		(24.5)		328.9		98.3
Divestitures gain		(170.1)		-		(170.1)		-
Restructuring, impairment, and other exit costs		7.1		11.0		5.1		11.9
Operating profit	$	815.3	$	826.6	$	2,459.7	$	2,596.9

Net sales for our North America Retail operating units were as follows:

	Quarter Ended				Nine-Month Period Ended
In Millions	Feb. 27, 2022		Feb. 28, 2021		Feb. 27, 2022		Feb. 28, 2021
U.S. Meals & Baking Solutions	$	968.0	$	990.7	$	3,032.6	$	3,169.0
U.S. Morning Foods		858.0		823.2		2,514.4		2,495.8
U.S. Snacks		745.0		726.8		2,282.3		2,172.0
Canada		240.9		245.3		737.8		702.5
Total	$	2,811.9	$	2,786.0	$	8,567.1	$	8,539.3

Net sales by class of similar products were as follows:

	Quarter Ended				Nine-Month Period Ended
In Millions	Feb. 27, 2022		Feb. 28, 2021		Feb. 27, 2022		Feb. 28, 2021
Snacks	$	925.3	$	871.9	$	2,827.4	$	2,608.6
Convenient meals		772.8		785.0		2,258.1		2,334.8
Cereal		754.4		715.4		2,227.6		2,168.7
Pet		568.1		436.3		1,649.5		1,288.0
Dough		446.6		498.0		1,458.8		1,456.8
Baking mixes and ingredients		465.9		416.8		1,379.4		1,293.6
Yogurt		349.3		505.3		1,362.3		1,513.5
Super-premium ice cream		151.4		164.0		596.2		596.4
Other		103.9		127.3		342.3		343.0
Total	$	4,537.7	$	4,520.0	$	14,101.6	$	13,603.4