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Redeemable And Noncontrolling Interests
 6 Months Ended
Nov. 27, 2022
Redeemable And Noncontrolling Interests [Abstract]  
Redeemable And Noncontrolling Interests
(8) Redeemable and Noncontrolling Interests
The
 
third-party
 
holder
 
of
 
the
 
General
 
Mills
 
Cereals,
 
LLC
 
(GMC)
 
Class A
 
Interests
 
receives
 
quarterly
 
preferred
 
distributions
 
from
available net
 
income based
 
on the application
 
of a
 
floating preferred
 
return rate
 
to the
 
holder’s capital
 
account balance
 
established in
the
 
most
 
recent
 
mark-to-market
 
valuation
 
(currently
 
$
251.5
 
million).
 
On
 
June 1,
 
2021,
 
the
 
floating
 
preferred
 
return
 
rate
 
on
 
GMC’s
Class A Interests
 
was reset
 
to the
 
sum of
three-month LIBOR
 
plus
160
 
basis points.
 
The preferred
 
return rate
 
is adjusted
 
every
three
years
 
through a negotiated agreement with the Class A Interest holder or through
 
a remarketing auction.
During
 
the
 
third
 
quarter
 
of
 
fiscal
 
2022,
 
we
 
completed
 
the
 
sale
 
of
 
our
 
interests
 
in
 
Yoplait
 
SAS,
 
Yoplait
 
Marques
 
SNC
 
and
 
Liberté
Marques
 
Sàrl
 
to
 
Sodiaal
 
International
 
(Sodiaal)
 
in
 
exchange
 
for
 
Sodiaal’s
 
interest
 
in
 
our
 
Canadian
 
yogurt
 
business,
 
a
 
modified
agreement for the use of
Yoplait
 
and
Liberté
brands in the United States and Canada, and cash.
 
Up to
 
the date
 
of the
 
divestiture, Sodiaal
 
held the remaining
 
interests in
 
each of
 
the entities.
 
On the
 
acquisition date,
 
we recorded
 
the
fair
 
value
 
of
 
Sodiaal’s
49
 
percent
 
euro-denominated
 
interest
 
in
 
Yoplait
 
SAS
 
as
 
a
 
redeemable
 
interest
 
on
 
our
 
Consolidated
 
Balance
Sheets. Sodiaal had
 
the right to
 
put all or
 
a portion of
 
its redeemable interest
 
to us at
 
fair value until
 
the divestiture closed
 
in the third
quarter of
 
fiscal 2022.
 
In connection
 
with the
 
divestiture, cumulative
 
adjustments made
 
to the
 
redeemable
 
interest related
 
to the
 
fair
value put feature were
 
reversed against additional paid-in
 
capital, where changes in the
 
redemption amount were historically recorded,
and the resulting carrying value of the noncontrolling interests were included
 
in the calculation of the gain on divestiture.
A
subsidiary of Yoplait
 
SAS had an exclusive
 
milk supply agreement
 
for its European operations
 
with Sodiaal through
 
November 28,
2021. Net purchases totaled $
99.5
 
million for the six-month period ended November 28, 2021.
Our noncontrolling interests contain restrictive covenants. As of November 27, 2022, we were in compliance with all of these
covenants.