Retirement Benefits And Postemployment Benefits

12 Months Ended

May 28, 2023

Retirement Benefits And Postemployment Benefits [Abstract]

Retirement Benefits And Postemployment Benefits

NOTE 14. RETIREMENT BENEFITS AND POSTEMPLOYMENT BENEFITS

Defined Benefit Pension Plans 

We have defined benefit pension plans covering many employees in the United States, Canada, Switzerland, and the United Kingdom.

Benefits for salaried employees are based on length of service and final average compensation. Benefits for hourly employees include

various monthly amounts for each year of credited service. Our funding policy is consistent with the requirements of applicable laws.

We made

no

 voluntary contributions to our principal U.S. plans in fiscal 2023 or fiscal 2022. We do not expect to be required to make

any contributions to our principal U.S. plans in fiscal 2024. Our principal U.S. retirement plan covering salaried employees has a

provision that any excess pension assets would be allocated to active participants if the plan is terminated within

five years

 of a change

in control. All salaried employees hired on or after June 1, 2013, are eligible for a retirement program that does not include a defined

benefit pension plan. 

Other Postretirement Benefit Plans 

We also sponsor plans that provide health care benefits to many of our retirees in the United States, Canada, and Brazil. The U.S.

salaried health care benefit plan is contributory, with retiree contributions based on years of service. We make decisions to fund

related trusts for certain employees and retirees on an annual basis. We made

no

 voluntary contributions to these plans in fiscal 2023

or fiscal 2022. We do not expect to be required to make any contributions to these plans in fiscal 2024.

In fiscal 2021, we approved amendments to reorganize certain U.S. retiree health and welfare benefit plans. The General Mills Retiree

Health Plan for Union Employees was divided into two plans, with participants under age 65 remaining within its coverage, and

participants age 65 and over covered by The General Mills Retiree Health Plan for Union Employees (65+). Effective January 1, 2022,

the General Mills Retiree Health Plan for Union Employees (65+) allows certain participants to purchase individual health insurance

policies on a private health care exchange. Additionally, the Employees’ Benefit Plan of General Mills was merged into the General

Mills Retiree Health Plan for Union Employees. Separate benefit structures and plan provisions continue to apply to eligible

participants of these merged plans. A portion of the General Mills Retiree Health Plan for Union Employees overfunded plan assets

were segregated to offset the cost of the Employees’ Benefit Plan of General Mills health and welfare benefits. The segregation of

assets is reported as a negative employer contribution in the change in other postretirement benefit plan assets. The amendments

facilitate targeted investment strategies that reflect each plan’s unique liability characteristics.

In fiscal 2021, we announced changes to the design of our health care coverage for certain eligible retirees to allow participants to

purchase individual health insurance policies on a private health care exchange effective January 1, 2022. These changes provide

certain eligible retirees with greater flexibility in choosing health care coverage that best fits their needs.

Health Care Cost Trend Rates 

Assumed health care cost trends are as follows:

Fiscal Year

2023

2022

Health care cost trend rate for next year

6.6

% and

6.6

%

5.9

% and

6.0

%

Rate to which the cost trend rate is assumed to decline (ultimate rate)

4.5

%

4.5

%

Year that the rate reaches the ultimate trend rate

2032

2031

We review our health care cost trend rates annually. Our review is based on data we collect about our health care claims experience

and information provided by our actuaries. This information includes recent plan experience, plan design, overall industry experience

and projections, and assumptions used by other similar organizations. Our initial health care cost trend rate is adjusted as necessary to

remain consistent with this review, recent experiences, and short-term expectations. Our initial health care cost trend rate assumption

is

6.6

 percent for retirees age 65 and over and for retirees under age 65 at the end of fiscal 2023. Rates are graded down annually until

the ultimate trend rate of

4.5

 percent is reached in

2032

 for all retirees. The trend rates are applicable for calculations only if the

retirees’ benefits increase as a result of health care inflation. The ultimate trend rate is adjusted annually, as necessary, to approximate

the current economic view on the rate of long-term inflation plus an appropriate health care cost premium. Assumed trend rates for

health care costs have an important effect on the amounts reported for the other postretirement benefit plans.

Postemployment Benefit Plans 

Under certain circumstances, we also provide accruable benefits, primarily severance, to former or inactive employees in the United

States, Canada, and Mexico. We recognize an obligation for any of these benefits that vest or accumulate with service.

Postemployment benefits that do not vest or accumulate with service (such as severance based solely on annual pay rather than years

of service) are charged to expense when incurred. Our postemployment benefit plans are unfunded.

Summarized financial information about defined benefit pension, other postretirement benefit, and postemployment benefit plans is

presented below:

Defined Benefit Pension

Plans

Other

Postretirement

Benefit Plans

Postemployment

Benefit Plans

Fiscal Year

Fiscal Year

Fiscal Year

In Millions

2023

2022

2023

2022

2023

2022

Change in Plan Assets:

Fair value at beginning of year

$

6,510.3

$

7,460.2

$

479.2

$

519.4

Actual return on assets

(413.5)

(618.7)

(6.6)

(18.0)

Employer contributions

30.0

31.2

0.1

0.1

Plan participant contributions

1.3

3.8

5.7

9.6

Benefits payments

(344.6)

(346.2)

(22.4)

(31.9)

Foreign currency

(4.9)

(20.0)

-

-

Fair value at end of year (a)

$

5,778.6

$

6,510.3

$

456.0

$

479.2

Change in Projected Benefit Obligation:

Benefit obligation at beginning of year

$

6,528.3

$

7,714.4

$

469.6

$

600.0

$

138.5

$

151.7

Service cost

70.3

93.5

5.1

7.6

8.4

10.0

Interest cost

258.5

184.3

17.9

12.6

3.1

1.5

Plan amendment

-

3.7

-

(16.1)

-

-

Curtailment/other

(8.5)

(29.4)

-

(3.2)

10.4

12.0

Plan participant contributions

1.3

3.8

5.7

9.6

-

-

Medicare Part D reimbursements

-

-

0.7

1.7

-

-

Actuarial gain

(538.1)

(1,089.7)

(22.5)

(86.0)

(10.7)

(18.7)

Benefits payments

(336.1)

(334.7)

(45.5)

(56.9)

(18.5)

(17.7)

Foreign currency

(5.0)

(17.6)

(0.4)

0.3

(0.2)

(0.3)

Projected benefit obligation at end of year (a)

$

5,970.7

$

6,528.3

$

430.6

$

469.6

$

131.0

$

138.5

Plan assets (less) more than benefit obligation as of

 fiscal year end

$

(192.1)

$

(18.0)

$

25.4

$

9.6

$

(131.0)

$

(138.5)

(a) Plan assets and obligations are measured as of

May 31, 2023

 and

May 31, 2022

.

During fiscal 2023 and fiscal 2022, the decreases in defined benefit pension obligations and other postretirement obligations were

primarily driven by actuarial gains due to an increase in the discount rate in each respective year.

As of May 28, 2023, other postretirement benefit plans had benefit obligations of $

308.0

 million that exceeded plan assets of

$

274.2

 million. As of May 29, 2022, other postretirement benefit plans had benefit obligations of $

332.4

 million that exceeded plan

assets of $

279.6

 million. Postemployment benefit plans are not funded and had benefit obligations of $

131.0

 million and

$

138.5

 million as of May 28, 2023 and May 29, 2022, respectively.

The accumulated benefit obligation for all defined benefit pension plans was $

5,807.9

 million as of May 28, 2023, and

$

6,330.0

 million as of May 29, 2022.

Amounts recognized in AOCI as of May 28, 2023 and May 29, 2022, are as follows:

Defined Benefit Pension

Plans

Other Postretirement

Benefit Plans

Postemployment

Benefit Plans

Total

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

In Millions

2023

2022

2023

2022

2023

2022

2023

2022

Net actuarial (loss) gain

$

(1,859.7)

$

(1,720.3)

$

186.9

$

208.5

$

2.2

$

(1.6)

$

(1,670.6)

$

(1,513.4)

Prior service (costs) credits

(4.8)

(7.6)

102.3

118.9

(1.1)

(1.0)

96.4

110.3

Amounts recorded in accumulated

 other comprehensive loss

$

(1,864.5)

$

(1,727.9)

$

289.2

$

327.4

$

1.1

$

(2.6)

$

(1,574.2)

$

(1,403.1)

Plans with accumulated benefit obligations in excess of plan assets as of May 28, 2023 and May 29, 2022 are as follows:

Defined Benefit Pension Plans

Fiscal Year

In Millions

2023

2022

Projected benefit obligation

$

466.2

$

508.2

Accumulated benefit obligation

453.4

479.6

Plan assets at fair value

18.7

20.5

Components of net periodic benefit expense are as follows:

Defined Benefit Pension Plans

Other Postretirement Benefit

Plans

Postemployment Benefit Plans

Fiscal Year

Fiscal Year

Fiscal Year

In Millions

2023

2022

2021

2023

2022

2021

2023

2022

2021

Service cost

$

70.3

$

93.5

$

104.4

$

5.1

$

7.6

$

8.5

$

8.4

$

10.0

$

9.3

Interest cost

258.5

184.3

192.1

17.9

12.6

18.0

3.1

1.5

1.7

Expected return on

 plan assets

(420.5)

(411.1)

(420.9)

(31.1)

(26.7)

(34.7)

-

-

-

Amortization of losses

 (gains)

113.2

140.5

108.3

(19.3)

(10.9)

(5.1)

0.4

3.0

2.6

Amortization of prior

 service costs

 (credits)

1.5

1.0

1.3

(23.2)

(20.9)

(5.5)

0.3

0.4

0.9

Other adjustments

-

0.1

-

-

(0.1)

-

10.4

12.9

8.4

Settlement or

 curtailment (gains)

 losses

(0.7)

(18.4)

14.9

-

(5.5)

-

-

-

-

Net expense (income)

$

22.3

$

(10.1)

$

0.1

$

(50.6)

$

(43.9)

$

(18.8)

$

22.6

$

27.8

$

22.9

Assumptions

Weighted-average assumptions used to determine fiscal year-end benefit obligations are as follows:

Defined Benefit Pension

Plans

Other Postretirement

Benefit Plans

Postemployment Benefit

Plans

Fiscal Year

Fiscal Year

Fiscal Year

2023

2022

2023

2022

2023

2022

Discount rate

5.18

%

4.39

%

5.19

%

4.36

%

4.55

%

3.62

%

Rate of salary increases

4.20

4.34

-

-

4.46

4.46

Weighted-average assumptions used to determine fiscal year net periodic benefit expense are as follows:

Defined Benefit Pension Plans

Other Postretirement Benefit

Plans

Postemployment Benefit Plans

Fiscal Year

Fiscal Year

Fiscal Year

2023

2022

2021

2023

2022

2021

2023

2022

2021

Discount rate

4.39

%

3.17

%

3.20

%

4.36

%

3.03

%

3.02

%

3.62

%

2.04

%

1.86

%

Service cost

 effective rate

4.57

3.56

3.58

4.41

3.34

3.40

3.69

2.46

3.51

Interest cost

 effective rate

4.03

2.42

2.55

3.80

2.08

2.29

3.35

1.48

2.83

Rate of

 salary increases

4.18

4.39

4.44

-

-

-

4.46

4.46

4.47

Expected long-term

 rate of return on

 plan assets

6.70

5.85

5.72

6.76

6.09

4.57

-

-

-

Discount Rates

We

estimate the service and interest cost components of the net periodic benefit expense for our United States and most of our

international defined benefit pension, other postretirement benefit, and postemployment benefit plans utilizing a full yield curve

approach by applying the specific spot rates along the yield curve used to determine the benefit obligation to the relevant projected

cash flows. Our discount rate assumptions are determined annually as of May 31 for our defined benefit pension, other postretirement

benefit, and postemployment benefit plan obligations. We also use discount rates as of May 31 to determine defined benefit pension,

other postretirement benefit, and postemployment benefit plan income and expense for the following fiscal year. We work with our

outside actuaries to determine the timing and amount of expected future cash outflows to plan participants and, using the Aa Above

Median corporate bond yield, to develop a forward interest rate curve, including a margin to that index based on our credit risk. This

forward interest rate curve is applied to our expected future cash outflows to determine our discount rate assumptions.

Fair Value of Plan Assets

The fair values of our pension and postretirement benefit plans’ assets and their respective levels in the fair value hierarchy by asset

category were as follows:

May 31, 2023

May 31, 2022

In Millions

Level 1

Level 2

Level 3

Total

Assets

Level 1

Level 2

Level 3

Total

Assets

Fair value measurement of pension

plan assets:

Equity (a)

$

278.3

$

484.1

$

34.3

$

796.7

$

623.4

$

442.3

$

66.3

$

1,132.0

Fixed income (b)

1,603.4

1,866.3

-

3,469.7

1,958.7

1,723.4

-

3,682.1

Real asset investments (c)

92.8

-

-

92.8

159.8

-

-

159.8

Other investments (d)

-

-

0.1

0.1

-

-

0.1

0.1

Cash and accruals

295.1

0.2

-

295.3

133.6

0.3

-

133.9

Fair value measurement of pension

 plan assets

$

2,269.6

$

2,350.6

$

34.4

$

4,654.6

$

2,875.5

$

2,166.0

$

66.4

$

5,107.9

Assets measured at net asset value (e)

1,124.0

1,402.4

Total pension plan assets

$

5,778.6

$

6,510.3

Fair value measurement of

postretirement benefit plan assets:

Fixed income (b)

$

113.3

$

-

$

-

$

113.3

$

120.8

$

-

$

-

$

120.8

Cash and accruals

2.5

-

-

2.5

6.6

-

-

6.6

Fair value measurement of

 postretirement benefit

 plan assets

$

115.8

$

-

$

-

$

115.8

$

127.4

$

-

$

-

$

127.4

Assets measured at net asset value (e)

340.2

351.8

Total postretirement benefit

 plan assets

$

456.0

$

479.2

(a) Primarily publicly traded common stock for purposes of total return and to maintain equity exposure consistent with policy

allocations. Investments include: United States and international public equity securities, mutual funds, and equity futures valued

at closing prices from national exchanges, commingled funds valued at fair value using the unit values provided by the investment

managers, and certain private equity securities valued using a matrix of pricing inputs reflecting assumptions based on the best

information available.

(b) Primarily government and corporate debt securities and futures for purposes of total return, managing fixed income exposure to

policy allocations, and duration targets. Investments include: fixed income securities and bond futures generally valued at closing

prices from national exchanges, fixed income pricing models, and independent financial analysts; and fixed income commingled

funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying investments.

(c) Publicly traded common stocks in energy, real estate, and infrastructure for the purpose of total return. Investments include:

energy, real estate, and infrastructure securities generally valued at closing prices from national exchanges, and commingled

funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying investments. 

(d) Insurance and annuity contracts to provide a stable stream of income for pension retirees. Fair values are based on the fair value

of the underlying investments and contract fair values established by the providers .

(e) Primarily limited partnerships, trust-owned life insurance, common collective trusts, and certain private equity securities that are

measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been classified in the

fair value hierarchy.

There were

no

 transfers into or out of level 3 investments in fiscal 2023. During fiscal 2022, the inclusion of non-observable inputs

into the pricing of certain private equity securities resulted in the transfer of $

66.3

 million into level 3 investments.

Expected Rate of Return on Plan Assets

Our expected rate of return on plan assets is determined by our asset allocation, our historical long-term investment performance, our

estimate of future long-term returns by asset class (using input from our actuaries, investment services, and investment managers), and

long-term inflation assumptions. We review this assumption annually for each plan; however, our annual investment performance for

one particular year does not, by itself, significantly influence our evaluation.

Weighted-average asset allocations for our defined benefit pension and other postretirement benefit plans are as follows:

Defined Benefit Pension Plans

Other Postretirement Benefit Plans

Fiscal Year

Fiscal Year

2023

2022

2023

2022

Asset category:

United States equities

8.3

%

12.1

%

28.6

%

27.9

%

International equities

4.8

7.8

13.4

13.5

Private equities

10.6

10.4

14.5

15.2

Fixed income

65.1

58.3

43.5

43.4

Real assets

11.2

11.4

-

-

Total

100.0

%

100.0

%

100.0

%

100.0

%

The investment objective for our defined benefit pension and other postretirement benefit plans is to secure the benefit obligations to

participants at a reasonable cost to us. Our goal is to optimize the long-term return on plan assets at a moderate level of risk. The

defined benefit pension plan and other postretirement benefit plan portfolios are broadly diversified across asset classes. Within asset

classes, the portfolios are further diversified across investment styles and investment organizations. For the U.S. defined benefit

pension plans, the long-term investment policy allocation is:

9

 percent to equities in the United States;

6

 percent to international

equities;

7

 percent to private equities;

68

 percent to fixed income; and

10

 percent to real assets (real estate, energy, and infrastructure).

For other U.S. postretirement benefit plans, the long-term investment policy allocations are:

28

 percent to equities in the United States;

14

 percent to international equities;

14

 percent to total private equities; and

44

 percent to fixed income. The actual allocations to these

asset classes may vary tactically around the long-term policy allocations based on relative market valuations.

Contributions and Future Benefit Payments

We do

no

t expect to be required to make contributions to our defined benefit pension, other postretirement benefit, and

postemployment benefit plans in fiscal 2024. Actual fiscal 2024 contributions could exceed our current projections, as influenced by

our decision to undertake discretionary funding of our benefit trusts and future changes in regulatory requirements. Estimated benefit

payments, which reflect expected future service, as appropriate, are expected to be paid from fiscal 2024 to fiscal 2033 as follows:

In Millions

Defined Benefit

Pension Plans

Other

Postretirement

Benefit Plans

Gross Payments

Postemployment

Benefit Plans

Fiscal 2024

$

351.4

$

38.6

$

27.1

Fiscal 2025

357.6

37.5

20.0

Fiscal 2026

364.6

36.6

18.6

Fiscal 2027

371.6

36.1

16.7

Fiscal 2028

378.9

34.9

15.4

Fiscal 2029-2033

1,977.5

158.8

64.4

Defined Contribution Plans 

The General Mills Savings Plan is a defined contribution plan that covers domestic salaried, hourly, nonunion, and certain union

employees. This plan is a 401(k) savings plan that includes a number of investment funds, including a Company stock fund and an

Employee Stock Ownership Plan (ESOP). We sponsor another money purchase plan for certain domestic hourly employees with net

assets of $

19.2

 million as of May 28, 2023, and $

20.6

 million as of May 29, 2022. We also sponsor defined contribution plans in many

of our foreign locations. Our total recognized expense related to defined contribution plans was $

97.2

 million in fiscal 2023,

$

90.1

 million in fiscal 2022, and $

76.1

 million in fiscal 2021.

We match a percentage of employee contributions to the General Mills Savings Plan. The Company match is directed to investment

options of the participant’s choosing. The number of shares of our common stock allocated to participants in the ESOP was

3.7

million as of May 28, 2023, and

4.0

 million as of May 29, 2022. The ESOP’s only assets are our common stock and temporary cash

balances.

The Company stock fund and the ESOP collectively held $

498.7

 million and $

443.8

 million of Company common stock as of May 28,

2023, and May 29, 2022, respectively.