Use the information on the next tab to solve the next six questions. You will find an income statement, balance sheet, statement of cash flows and select information from the notes. 5. Find cleaned EBIT for 2015. Your answer: 6. Find cleaned EBITDA for 2015. Your answer: 7. Find Net Debt in 2015. Your answer: 8. Find operating working capital in 2015. Your answer: 9. Find return on assets in 2016. Your answer: 10. Find return on equity to General Mills shareholders in 2015. Your answer: Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) 2016 2014 Fiscal Year 2015 $ 17,630.3 11,681.1 $ 16,563.1 $ 17,909.6 10,733.6 11,539.8 3,118.9 3,328.0 3,474.3 (148.2) (65.5) 151.4 543.9 3.6 2,707.4 2,077.3 2,957.4 303.8 315 302.4 2,403.6 1,761.9 2,655.0 Net sales Cost of sales Selling, general, and administrative expenses Divestitures (gain) Restructuring, impairment, and other exit costs Operating profit Interest, net Earnings before income taxes and after-tax earnings from joint ventures Income taxes After-tax earnings from joint ventures Net earnings, including earnings attributable to redeemable and noncontrolling interests Net earnings attributable to redeemable and noncontrolling interests Net earnings attributable to General Mills Earnings per share - basic Earnings per share - diluted Dividends per share 755.2 586.8 883.3 88.4 84.3 89.6 1,736.8 1,259.4 1,861.3 39.4 38.1 = 36.9 $ 1,697.4 $ 1,221.3 $ 1,824.4 S 2.83 1000) 2.02 $ 2.90 S 2.77 1.97 $ 2.83 $ 1.78 1.67 $ 1.55 See accompanying notes to consolidated financial statements. Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except Par Value) May 29, 2016 May 31, 2015 S S 763.7 1,360.8 1,413.7 399.0 334.2 1,386.7 1.540.9 423.8 ASSETS Current assets: Cash and cash equivalents Receivables Inventories Prepaid expenses and other current assets Total current assets Land, buildings, and equipment Goodwill Other intangible assets Other assets 3,937.2 3,743.6 8,741.2 4,538.6 751.7 3,685.6 3,783.3 8,874.9 4,677.0 811.2 Total assets $21,712.3 $21.832.0 LIABILITIES AND EQUITY Current liabilities: Accounts payable Current portion of long-term debt Notes payable Other current liabilities $ 2,046.5 1,103.4 269.8 1,595.0 $ 1,684.0 1,000.4 615.8 1,589.9 5,014.7 Total current liabilities Long-term debt Deferred income taxes Other liabilities 7,057.7 1,399.6 2,087.6 4,890.1 7,575.3 1,450.2 1,744.8 Total liabilities 15,559.6 15,660.4 778.9 845.6 Redeemable interest Stockholders' equity: Common stock, 754.6 shares issued, $0.10 par value Additional paid-in capital Retained earnings Common stock in treasury, at cost, shares of 157.8 and 155.9 Accumulated other comprehensive loss Total stockholders' equity Noncontrolling interests Total equity Total liabilities and equity 75.5 1,177.0 12,616.5 (6,326.6) (2,612.2) 75.5 1,296.7 11.990.8 (6,055.6) (2,310.7) 4,930.2 376.9 4.996.7 396.0 5,307.1 5,392.7 $21,712.3 $21,832.0 Consolidated Statements of Cash Flows GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions) Fiscal Year 2015 2016 2014 $ 1,736.8 $ 1,259.4 $ 1,861.3 Cash Flows - Operating Activities Net earnings, including earnings attributable to redeemable and noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization After-tax earnings from joint ventures Distributions of earnings from joint ventures Stock-based compensation Deferred income taxes Tax benefit on exercised options Pension and other postretirement benefit plan contributions Pension and other postretirement benefit plan costs Divestitures (gain), net Restructuring, impairment, and other exit costs Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures Other, net , 608.1 (88.4) 75.1 89.8 120.6 (94.1) (47.8) 588.3 (84.3) 72.6 106.4 25.3 (74.6) ) (49.5) 91.3 585.4 (89.6) 90.5 108.5 172.5 (693) (49.7) 118.1 124.1 (148.2) 107.2 258.2 (105.6) 531.1 214.7 (137.9) (65.5) (18.8) (32.2) (76.2) ( Net cash provided by operating activities 2,629.8 2.542.8 2,541.0 (663.5) Cash Flows - Investing Activities Purchases of land, buildings, and equipment Acquisitions, net of cash acquired Investments in affiliates, net Proceeds from disposal of land, buildings, and equipment Proceeds from divestitures Exchangeable note Other, net (729.3) (84.0) 63.9 4.4 828.5 21.1 (11.2) (712.4) (822.3) (102.4) 11.0 (54.9) 6.6 121.6 29.3 (0.9) 27.9 (4.0) Net cash provided (used) by investing activities 93.4 (1,602.2) (561.8) ) Cash Flows - Financing Activities Change in notes payable Issuance of long-term debt Payment of long-term debt Proceeds from common stock issued on exercised options Tax benefit on exercised options Purchases of common stock for treasury Dividends paid Addition of noncontrolling interest Distributions to noncontrolling and redeemable interest holders Other, net (323.8) ( 542.5 (1,000.4) 171.9 94.1 (606.7) (1,071.7) (509.8) 2,253.2 (1.145.8) 163.7 74,6 (1.161.9) (1,017.7) 572.9 1,673.0 (1,444.8) 108.1 69.3 (1,745.3) (983.3) 17.6 (77.4) (14.2) (84.3) (7.2) (25.0) (16.1) Net cash used by financing activities (2.285.6) (1,384.8 (1.824.1) Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of year (8.1) 429.5 334.2 (88.9) (533.1) ( 867.3 (29.2) 125.9 741.4 Cash and cash equivalents - end of year 763.7 $ 334.2 $ 867.3 NOTE 3. ACQUISITION AND DIVESTITURES During the fourth quarter of fiscal 2016, we sold our General Mills de Venezuela CA subsidiary to a third party and exited our business in Venezuela. As a result of this transaction, we recorded a pre-tax loss of $37.6 million. In addition, we sold our General Mills Argentina S.A. foodservice business in Argentina to a third party and recorded a pre-tax loss of $14.8 million. During the second quarter of fiscal 2016, we sold our North American Green Giant product lines for $822.7 million in cash, and we recorded a pre-tax gain of $199.1 million. We received net cash proceeds of $788.0 million after transaction related costs. After the divestiture, we retained a brand intangible asset on our Consolidated Balance Sheets of $30.1 million related to our continued use of the Green Giant brand in certain markets outside of North America. During the second quarter of fiscal 2015, we acquired Annie's, a publicly traded food company headquartered in Berkeley, California, for an aggregate purchase price of $821.2 million, which we funded by issuing debt. We consolidated Annie's into our Consolidated Balance Sheets and recorded goodwill of $589.8 million, an indefinite lived intangible asset for the Annie's brand of $244.5 million, and a finite lived customer relationship asset of $23.9 million. The pro forma effects of this acquisition were not material. NOTE 4. RESTRUCTURING, IMPAIRMENT, AND OTHER EXIT COSTS INTANGIBLE ASSET IMPAIRMENT In fiscal 2015, we recorded a $260.0 million charge related to the impairment of our Green Giant brand intangible asset in restructuring, impairment, and other exit costs. See Note 6 for additional information. From Note 6: In fiscal 2015, we made a strategic decision to redirect certain resources supporting our Green Giant business in our U.S. Retail segment to other businesses within the segment. Therefore, future sales and profitability projections in our long-range plan for this business declined. As a result of this triggering event, we performed an interim impairment assessment of the Green Giant brand intangible asset as of May 31, 2015, and determined that the fair value of the brand asset no longer exceeded the carrying value of the asset. Significant assumptions used in that assessment included our updated long-range cash flow projections for the Green Giant business, an updated royalty rate, a weighted average cost of capital, and a tax rate. We recorded a $260.0 million impairment charge in restructuring, impairment, and other exit costs in fiscal 2015 related to this asset