XML 26 R16.htm IDEA: XBRL DOCUMENT v3.23.1
Redeemable And Noncontrolling Interests
 9 Months Ended
Feb. 26, 2023
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). The
 
floating preferred return
 
rate on GMC’s
 
Class A Interests is
the
 
sum
 
of
 
the
three-month Term SOFR
 
plus
186
 
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
 
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. Please see Note 2 to the Consolidated
 
Financial Statements.
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 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 February 26, 2023, we were in compliance with all of these
covenants.