For purposes of this table, arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure, and approximate timing of the transaction. Buildings are usually depreciated over 40 years, and equipment, furniture, and software are usually depreciated over 3 to 10 years. The adoption of this guidance resulted in the prospective recognition of realized windfall and shortfall tax benefits related to the exercise or vesting of stock-based awards in our Consolidated Statements of Earnings instead of additional paid-in capital within our Consolidated Balance Sheets. In addition, the loss of any large customer could adversely affect our sales and profits. We also recorded a $19 million charge related to a product recall in our international Green Giant business in fiscal 2020. Headquartered in Minneapolis, Minnesota, USA, General Mills had fiscal 2019 worldwide sales of US $17.9 billion including the company's US $1 billion proportionate of joint-venture net sales. We have a 51 percent controlling interest in Yoplait SAS and a 50 percent interest in Yoplait Marques SNC and Liberté Marques Sàrl. We may need to recall some of our products if they become adulterated, misbranded, or mislabeled. Gain (loss) reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and SG&A expenses for foreign exchange contracts. We used the net proceeds to repay a portion of our outstanding commercial paper and for general corporate purposes. Please refer to the Proxy Statement for additional details. The results of our Pet operating segment include 13 months of results in fiscal 2020 as we changed the Pet operating segment's reporting period from an April fiscal year end to a May fiscal year end to match our fiscal calendar. The section below provides information regarding our executive officers as of July 2, 2020: Richard C. Allendorf, age 59, is General Counsel and Secretary. We also have audited the Company's internal control over financial reporting as of May 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our estimates of fair value are determined based on a discounted cash flow model. The decrease in organic net sales growth includes unfavorable organic net price realization and mix and a decrease in contributions from organic volume growth. Lowering the expected long-term rate of return on assets by 100 basis points would increase our net pension and postretirement expense by $79 million for fiscal 2021. She held human resources leadership roles in Supply Chain, Finance, Marketing, and Organization Effectiveness, and she also worked a large part of her career on businesses outside of the United States. Information on restricted stock unit and performance share unit activity follows: The total grant-date fair value of restricted stock unit awards that vested was $59.7 million in fiscal 2020 and $47.1 million in fiscal 2019. We estimate the value of stock option grants using a Black- Scholes valuation model. Development of the global economy; Passenger cars and light commercial vehicles ; Commercial vehicles; Power Engineering; Financial services; Exchange rate, interest rate and commodity price trends; Strategy. Accordingly, we make various assumptions to predict and measure costs and obligations many years prior to the settlement of our obligations. The fiscal 2020 increase in net sales growth includes approximately 3 points of net sales growth due to the impact of the COVID-19 pandemic. What is General Mills Allergen Labeling Policy? 7262(b)) by the registered public accounting firm that prepared or issued its audit report. On a weighted-average basis, the expected rate of return for all defined benefit plans was 6.95 percent for fiscal 2020, 7.25 percent for fiscal 2019, and 7.88 percent for fiscal 2018. 3. We also have uncommitted and asset-backed credit lines that support our foreign operations. These reports include company annual reports (10K, 10Q), news updates (8K), investor presentations (found in 8Ks), insider trades (form 4), ownership reports (13D, and 13G), and reports related to the specific securities sold, such as registration statements (S-1, S-8) and prospectus (FWP). If our products become adulterated, misbranded, or mislabeled, we might need to recall those items and may experience product liability claims if consumers or their pets are injured. Average diluted shares outstanding increased by 8 million in fiscal 2020 from fiscal 2019 due to option exercises. We also sponsor plans that provide health care benefits to many of our retirees in the United States, Canada, and Brazil. These euro- and Canadian dollar-denominated interests are reported in U.S. dollars on our Consolidated Balance Sheets. A reconciliation of these measures to reported net sales growth rates, the relevant GAAP measures, are included in our Consolidated Results of Operations and Results of Segment Operations discussions in the MD&A above. General Mills Inc 's Annual Sales by Country and Region in May 30, 2015, International, Total, U.S. Average floating rates are based on rates as of the end of the reporting period. Reports of beneficial ownership filed pursuant to Section 16(a) of the 1934 Act are also available on our website. We adopted the requirements of the new standard using a retrospective approach. All of our principal competitors have substantial financial, marketing, and other resources. During fiscal 2020, we received $263 million of net proceeds from common stock issued on exercised options compared to $241 million in fiscal 2019. During fiscal 2020, Walmart Inc. and its affiliates (Walmart) accounted for 21 percent of our consolidated net sales and 30 percent of net sales of our North America Retail segment. In the first quarter of fiscal 2018, we adopted new requirements for the accounting and presentation of stock- based payments. At completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. In general, demand for our products is evenly balanced throughout the year. Scheduled maturities of our marketable securities are as follows: As of May 31, 2020, we had $2.3 million of marketable debt securities and $15.9 million of cash and cash equivalents pledged as collateral for derivative contracts. The 2017 Plan also provides for the issuance of cash-settledshare-based units, stock appreciation rights, and performance-based stock awards. BASIS OF PRESENTATION AND RECLASSIFICATIONS. The reconciliation of adjusted EBITDA to net earnings, including earnings attributable to redeemable and noncontrolling interests, its GAAP equivalent, as well as the calculation of the net debt-to-adjusted EBITDA ratio are as follows: Net earnings, including earnings attributable to redeemable and noncontrolling, CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. We estimate the fair value of each option on the grant date using a Black-Scholesoption-pricing model, which requires us to make predictive assumptions regarding future stock price volatility, employee exercise behavior, dividend yield, and the forfeiture rate. We protect these marks as appropriate through registrations in the United States and other jurisdictions. The preferred return rate is adjusted every three years through a negotiated agreement with the Class A Interest holder or through a remarketing auction. increase. The models assumed normal market conditions and used a 95 percent confidence level. We have taken steps to increase our production capacity to meet the increased demand for our retail products, including increasing production time at our manufacturing facilities and prioritizing certain product lines to increase manufacturing efficiency. The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: The charges recognized in the roll forward of our reserves for restructuring and other exit costs do not include items charged directly to expense (e.g., asset impairment charges, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets. For all significant foreign operations, the functional currency is the local currency. In addition, we build the equity of our brands over time with strong consumer-directed marketing, innovative new products, and effective merchandising. We work continuously to improve our core products and to create new products that meet consumers' evolving needs and preferences. We have a substantial amount of indebtedness, which could limit financing and other options and in some cases adversely affect our ability to pay dividends. Assumptions that require significant management judgment and have a material impact on the measurement of our net periodic benefit expense or income and accumulated benefit obligations include the long-term rates of return on plan assets, the interest rates used to discount the obligations for our benefit plans, and health care cost trend rates. Fiscal 2018 represents a prior year income tax expense adjustment. Measured in tons based on the stated weight of our product shipments. Actual future net defined benefit pension, other postretirement benefit, and postemployment benefit plan income or expense will depend on investment performance, changes in future discount rates, changes in health care cost trend rates, and other factors related to the populations participating in these plans. The fair value of long-term debt was estimated using market quotations and discounted cash flows based on our current incremental borrowing rates for similar types of instruments. Sean Walker, age 54, is Group President, Asia & Latin America. In 1928, General Mills acquired the Wichita Mill and Elevator Company of the industrialist Frank Kell of Wichita Falls, Texas. Under certain circumstances, we also provide accruable benefits, primarily severance, to former and inactive employees in the United States, Canada, and Mexico. Rates are graded down annually until the ultimate trend rate of 4.5 percent is reached in 2029 for all retirees. Our future success and earnings growth depend in part on our ability to be efficient in the production and manufacture of our products in highly competitive markets. We recognize an obligation for any of these benefits that vest or accumulate with service. Integration costs resulting from the acquisition of Blue Buffalo in fiscal 2018. We do not expect to be required to make any contributions in fiscal 2021. We also sponsor plans that provide health care benefits to many of our retirees in the United States, Canada, and Brazil. Our future results could be affected by a variety of factors, such as: the impact of the COVID-19 pandemic on our business, suppliers, consumers, customers, and employees; disruptions or inefficiencies in the supply chain, including any impact of the COVID-19 pandemic; competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets, changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health- related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, and energy; effectiveness of restructuring and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. 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