Question

Refer to General Mills “Statement of Earnings for fiscal 2006 (the year ended May 28, 2006)

GENERAL MILLS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS In Mlaons, Excep pri Share Data May 28, 2006 Fisci,-九.ll Ended Net Sales Costs and Expenses: 11,640 $11,244 $11,070 Cost of sales Selling, general and administrative Interest, net Restructuring and other exit costs Divestitures (gain) Debt repurchase costs 6,966 2,678 399 30 6,834 2,418 455 84 (499) 137 6,584 2,443 508 26 94299,561 10,073 1,567 541 Total Costs and Expenses ,509 528 74 $ 1,055 Earnings before Income Taxes and After-tax Earnings from Joint Ventures Income Taxes 1,815 664 6489 $1,240 After-tax Earnings from Joint Ventures $1,090 $ 3.34 S 3.08 1.24 $ 2.82 2.60 1.10 Earnings per Share Basic $3.05 $ 2.90 Earnings per Share Diluted S 1.34 See accompanying notes to consolidated financial statements.

1. Were there any significant changes in the cost structure during the most recent year?
2. In fiscal 2005, General Mills separately reports the following three items: Restructuring and other exit costs. Divestitures, and Debt repurchase costs. Why did not the company just include all of these amounts within the line item for selling cereal and administrative expenses?

Answer 1

Gieneral mls, NC, and Subsrdiaries consoidated COmmon size State ment!income state Por year Ended Net sales tosts and Expenses Costs of sales Eq Ç6 | 6834 İSq-85%| 60781. atie! 2673|2418 |2301 У.ILI.Soノ Selling, general andadonoï mterest, Nel Debt reperchase cost Totar Costs and Expense Do331 13 467 Net eanings Eps Bast c EDi tuted Dividends per share 3.DS 1 D.bz:/. | 0.0.3 y -34