General Mills reported the following statement of comprehensive income in its fiscal 2016 Form 10-K. 29-May-16 31-May-15 25-May-14 51.736.8 $1.259.4 $1,861.3 (11.3) (108.7) (325.9) 1957.9) (358.4) 2060 For 12 Months Ended (5 millions) Net earnings Other comprehensive income (loss), net of taxc Foreign currency translation Net actuarial income (oss) Other fair value changes: Securities Hedge derivatives Reclassification to earnings: Hedge derivatives Amortization of losses and prior service costs Other comprehensive income (loss), net of tax Total comprehensive income 0.1 16.0 19.5) 49 (4.6) 128.6 (299.4) $1.437. 4 105.1 (1,201.4) 5 58.0 303 52.164.3 a. Comprehensive income includes a loss of $108.7 million related to foreign currency translation. Explain what this loss mean b. On average, did the SUS weaken or strengthen vis-a-vis the currencies of the companies' foreign subsidiaries? On average, the U.S. strengthened vis-a-vis the currencies of the companies' foreign subsidiaries. On average, the U.S. weakened vis-a-vis the currencies of the companies' foreign subsidiaries. Not enough information is provided to determine whether the SUS dollar strengthened or weakened vis--vis the currencies c. What was the cash portion of the foreign currency translation loss in 20167$ million d. Comprehensive income includes a gain of $16 million related to hedge derivatives. Is this a fair value or a cash flow hedge? e. Provide examples of hedging transactions General Mills might engage in. From the list below, which items are examples of hedging transactions? a. Inventory purchases b. Planned purchases of assets On average, the U.S. Strengthened vis-a-vis the currencies of the companies' foreign subsidiaries. On average, the U.S. weakened vis-a-vis the currencies of the companies' foreign subsidiaries. Not enough information is provided to determine whether the SUS dollar strengthened or weakened vis--vis the currencies of the ce c. What was the cash portion of the foreign currency translation loss in 2016? 5 million d. Comprehensive income includes a gain of $16 million related to hedge derivatives. Is this a fair value or a cash flow hedge? e. Provide examples of hedging transactions General Mills might engage in From the list below, which items are examples of hedging transactions? a. Inventory purchases b. Planned purchases of assets c. Foreign debt repayments d. Interest rates e. Anticipated sales in foreign currencies f. Interest payments on foreign debt. Select the most appropriate answer. Da and only Da, b, and e only a, b,ce, and fonly a, b, c, d, and e only Da, b, c, d,e and f f. How did the cash flow hedges affect net income during the 2016 fiscal year? Net Income by s million due to cash flow hedges. Check General Mills reported the following statement of comprehensive income in its fiscal 2016 Form 10-K. 29-May-16 31-May-15 25-May-14 51.736.8 $1.259.4 $1,861.3 (11.3) (108.7) (325.9) 1957.9) (358.4) 2060 For 12 Months Ended (5 millions) Net earnings Other comprehensive income (loss), net of taxc Foreign currency translation Net actuarial income (oss) Other fair value changes: Securities Hedge derivatives Reclassification to earnings: Hedge derivatives Amortization of losses and prior service costs Other comprehensive income (loss), net of tax Total comprehensive income 0.1 16.0 19.5) 49 (4.6) 128.6 (299.4) $1.437. 4 105.1 (1,201.4) 5 58.0 303 52.164.3 a. Comprehensive income includes a loss of $108.7 million related to foreign currency translation. Explain what this loss mean b. On average, did the SUS weaken or strengthen vis-a-vis the currencies of the companies' foreign subsidiaries? On average, the U.S. strengthened vis-a-vis the currencies of the companies' foreign subsidiaries. On average, the U.S. weakened vis-a-vis the currencies of the companies' foreign subsidiaries. Not enough information is provided to determine whether the SUS dollar strengthened or weakened vis--vis the currencies c. What was the cash portion of the foreign currency translation loss in 20167$ million d. Comprehensive income includes a gain of $16 million related to hedge derivatives. Is this a fair value or a cash flow hedge? e. Provide examples of hedging transactions General Mills might engage in. From the list below, which items are examples of hedging transactions? a. Inventory purchases b. Planned purchases of assets On average, the U.S. Strengthened vis-a-vis the currencies of the companies' foreign subsidiaries. On average, the U.S. weakened vis-a-vis the currencies of the companies' foreign subsidiaries. Not enough information is provided to determine whether the SUS dollar strengthened or weakened vis--vis the currencies of the ce c. What was the cash portion of the foreign currency translation loss in 2016? 5 million d. Comprehensive income includes a gain of $16 million related to hedge derivatives. Is this a fair value or a cash flow hedge? e. Provide examples of hedging transactions General Mills might engage in From the list below, which items are examples of hedging transactions? a. Inventory purchases b. Planned purchases of assets c. Foreign debt repayments d. Interest rates e. Anticipated sales in foreign currencies f. Interest payments on foreign debt. Select the most appropriate answer. Da and only Da, b, and e only a, b,ce, and fonly a, b, c, d, and e only Da, b, c, d,e and f f. How did the cash flow hedges affect net income during the 2016 fiscal year? Net Income by s million due to cash flow hedges. Check
