General Mills Reports Fiscal 2013 Second Quarter Results

The reconciliation of International segment and region net sales growth rates as reported to growth rates excluding the impact of foreign currency exchange below demonstrates the effect of foreign currency exchange rate fluctuations from year to year. To present this information, current period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the average exchange rates in effect during the corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year. Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

			Quarter Ended Nov. 25, 2012
			Percentage Change in			Impact of Foreign			Percentage Change in
			Net Sales			Currency			Net Sales on Constant
			as Reported (a)			Exchange			Currency Basis
Europe			Flat			(3	) pts		3	%
Canada			19	%		3			16
Asia/Pacific			8			-			8
Latin America			143			(25	)		168
Total International			19	%		(3	) pts		22	%
			Six-Month Period Ended Nov. 25, 2012
			Percentage Change in			Impact of Foreign			Percentage Change in
			Net Sales			Currency			Net Sales on Constant
			as Reported (a)			Exchange			Currency Basis
Europe			15	%		(8	) pts		23	%
Canada			21			-			21
Asia/Pacific			12			(1	)		13
Latin America			83			(16	)		99
Total International			22	%		(6	) pts		28	%

(a)		See Note 2.

A reconciliation of the effective income tax rate as reported to the effective income tax rate excluding certain items affecting comparability follows:

			Quarter Ended																	Six-Month Period Ended
			Nov. 25, 2012								Nov. 27, 2011									Nov. 25, 2012									Nov. 27, 2011
			Pretax			Income					Pretax			Income						Pretax				Income					Pretax			Income
In Millions			Earnings (a)			Taxes					Earnings (a)			Taxes						Earnings (a)				Taxes					Earnings (a)			Taxes
As reported			$	753.5		$		245.4			$	629.7		$		209.4				$	1,450.6			$		403.5			$	1,183.2		$		386.9
Mark-to-market effects (b)				47.9				17.7				94.4				34.9					(33.7	)				(12.5	)			132.1				48.9
Restructuring costs (c)				2.7				0.5				-				-					11.7					2.0				-				-
Acquisition integration costs (d)				4.8				1.4				3.9				0.9					5.3					1.4				4.0				0.9
Tax item (e)				-				-				-				-					-					66.7				-				-
As adjusted			$	808.9		$		265.0			$	728.0		$		245.2				$	1,433.9			$		461.1			$	1,319.3		$		436.7
Effective tax rate:
As reported								32.6	%							33.3	%									27.8	%							32.7	%
As adjusted								32.8	%							33.7	%									32.2	%							33.1	%

		(a)		Earnings before income taxes and after-tax earnings from joint ventures.
		(b)		See Note 5.
		(c)		See Note 4.
		(d)		Integration costs resulting from the acquisitions of Yoki, Yoplait S.A.S., and Yoplait Marques S.A.S.
		(e)		See Note 7.

(9)

Our consolidated results for fiscal 2013 include operating activity from the acquisitions of Yoki in Brazil (second quarter of fiscal 2013), Yoplait Ireland (first quarter of fiscal 2013), Food Should Taste Good in the United States (fourth quarter of fiscal 2012), Parampara Foods in India (first quarter of fiscal 2013), and the assumption of the Canadian Yoplait franchise license (second quarter of fiscal 2013). Also included in the first quarter of fiscal 2013 are two additional months of results from the acquisition of Yoplait S.A.S. (first quarter of fiscal 2012). Collectively, these items are referred to as “new businesses” in comparing our fiscal 2013 results to fiscal 2012 within this release.

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