Question
Foreign Translation Adjustment and Derivatives General Mills reported the following statement of comprehensive income in its fiscal 2019 Form 10-K. For 12 Months Ended ($
Foreign Translation Adjustment and Derivatives
General Mills reported the following statement of comprehensive income in its fiscal 2019 Form 10-K.
For 12 Months Ended ($ millions) | May 26, 2019 | May 27, 2018 | May 28, 2017 | |
---|---|---|---|---|
Net earnings, including earnings attributable to redeemable and noncontrolling interests | $1,786.2 | $2,163.0 | $1,701.1 | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (82.8) | (37.0) | 6.3 | |
Net actuarial income (loss) | (253.4) | 140.1 | 197.9 | |
Other fair value changes: | ||||
Securities | - | 1.2 | 0.8 | |
Hedge derivatives | 12.1 | (50.8) | 53.3 | |
Reclassification to earnings: | ||||
Securities | (2.0) | (5.1) | - | |
Hedge derivatives | 0.9 | 17.4 | (25.7) | |
Amortization of losses and prior service costs | 84.6 | 117.6 | 122.5 | |
Other comprehensive income (loss), net of tax | (240.6) | 183.4 | 355.1 | |
Total comprehensive income | 1,545.6 | 2,346.4 | 2,056.2 | |
Comprehensive(loss) income attributable to redeemable and noncontrolling interests | (10.7) | 70.5 | 31.0 | |
Comprehensive income attributable to General Mills | $1,556.3 | $2,275.9 | $2,025.2 |
On average, did the $US weaken or strengthen vis--vis the currencies of the companies foreign subsidiaries?
-On average, the U.S. strengthened vis--vis the currencies of the companies' foreign subsidiaries.
-On average, the U.S. weakened vis--vis the currencies of the companies' foreign subsidiaries.
-Not enough information is provided to determine whether the $US dollar strengthened or weakened vis--vis the currencies of the companies foreign subsidiaries.
What was the cash portion of the foreign currency translation loss in fiscal year 2019? $Answer- million?
Comprehensive income for fiscal year ended May 26, 2019, includes a gain of $12.1 million related to hedge derivatives. Is this a fair value or a cash flow hedge? Answer- cash flow hedge / fair value hedge ?
From the list below, which items are examples of hedging transactions that General Mills might engage in? Using the drop-down menu to the right of each item, select Yes to indicate a hedging transaction or No to indicate it's not a hedging transaction.
Inventory purchases | AnswerYes/No |
Planned purchases of assets | AnswerYes/No |
Foreign debt repayments | AnswerYes/No |
Interest rates | AnswerYes/No |
Anticipated sales in foreign currencies | AnswerYes/No |
Interest payments on foreign debt | AnswerYes/No |
How did the cash flow hedges affect net income during the fiscal year ended May 26, 2019? Net income Answer - _____by $_____million due to cash flow hedges.
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