Consolidated Statements of Cash Flows GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions) 2010 2009 2008 ......................................................................................... Fiscal Year ............................................................................................................................................................................................................................................................................................................................................................................................ Cash Flows – Operating Activities Net earnings, including earnings attributable to noncontrolling interests $ 1,535.0 $ 1,313.7 $ 1,318.1 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 457.1 453.6 459.2 After-tax earnings from joint ventures (101.7) (91.9) (110.8) Stock-based compensation 107.3 117.7 133.2 Deferred income taxes 22.3 215.8 98.1 Tax benefit on exercised options (114.0) (89.1) (55.7) Distributions of earnings from joint ventures 88.0 68.5 108.7 Pension and other postretirement benefit plan contributions (17.2) (220.3) (14.2) Pension and other postretirement benefit plan (income) expense (37.9) (27.5) 5.5 Divestitures (gain), net — (84.9) — Gain on insurance settlement — (41.3) — Restructuring, impairment, and other exit costs (income) 23.4 31.3 (1.7) Changes in current assets and liabilities 143.4 176.9 (126.7) Other, net 75.5 5.7 (83.8) ............................................................................................................................................................................................................................................................................................................................................................................................ Net cash provided by operating activities 2,181.2 1,828.2 1,729.9 ............................................................................................................................................................................................................................................................................................................................................................................................ Cash Flows – Investing Activities Purchases of land, buildings, and equipment (649.9) (562.6) (522.0) Acquisitions — — 0.6 Investments in affiliates, net (130.7) 5.9 64.6 Proceeds from disposal of land, buildings, and equipment 7.4 4.1 25.9 Proceeds from divestiture of product lines — 244.7 — Proceeds from insurance settlement — 41.3 — Other, net 52.0 (22.3) (11.5) ............................................................................................................................................................................................................................................................................................................................................................................................ Net cash used by investing activities (721.2) (288.9) (442.4) ............................................................................................................................................................................................................................................................................................................................................................................................ Cash Flows – Financing Activities Change in notes payable 235.8 (1,390.5) 946.6 Issuance of long-term debt — 1,850.0 1,450.0 Payment of long-term debt (906.9) (370.3) (1,623.4) Settlement of Lehman Brothers forward purchase contract — — 750.0 Repurchase of Series B-1 limited membership interests in GMC — — (843.0) Repurchase of General Mills Capital, Inc. preferred stock — — (150.0) Proceeds from sale of Class A limited membership interests in GMC — — 92.3 Proceeds from common stock issued on exercised options 388.8 305.2 191.4 Tax benefit on exercised options 114.0 89.1 55.7 Purchases of common stock for treasury (691.8) (1,296.4) (1,432.4) Dividends paid (643.7) (579.5) (529.7) Other, net — (12.1) (0.5) ............................................................................................................................................................................................................................................................................................................................................................................................ Net cash used by financing activities (1,503.8) (1,404.5) (1,093.0) ............................................................................................................................................................................................................................................................................................................................................................................................ Effect of exchange rate changes on cash and cash equivalents (32.8) (46.0) 49.4 ............................................................................................................................................................................................................................................................................................................................................................................................ Increase (decrease) in cash and cash equivalents (76.6) 88.8 243.9 ............................................................................................................................................................................................................................................................................................................................................................................................ Cash and cash equivalents - beginning of year 749.8 661.0 417.1 ............................................................................................................................................................................................................................................................................................................................................................................................ Cash and cash equivalents - end of year $ 673.2 $ 749.8 $ 661.0 Cash Flow from Changes in Current Assets and Liabilities: Receivables $ (121.1) $ 81.8 $ (94.1) Inventories (16.7) (28.1) (165.1) Prepaid expenses and other current assets 53.5 30.2 (65.9) Accounts payable 69.6 (116.4) 125.1 Other current liabilities 158.1 209.4 73.3 ............................................................................................................................................................................................................................................................................................................................................................................................ Changes in current assets and liabilities $ 143.4 $ 176.9 $ (126.7) See accompanying notes to consolidated financial statements. General Mills 50