Our Disciplined  Uses of Cash Our businesses are strong  generators of cash. In fi scal 2010  alone, cash flow from operations  totaled $2.2 billion, up 19 percent  from the prior year.  We invested $650 million of this cash in  capital projects to support growth oppor- tunities in our businesses. Our plan for  fiscal 2011 calls for $700 million in capital  investment, including projects to expand  U.S. cereal and yogurt manufacturing  capacity, and increase production of  Wanchai Ferry  and  Häagen-Dazs  products  in international markets. In fiscal 2010, we reduced debt by  more than $600 million, resulting in total  debt of $6.4 billion at the year’s end.  Our operating-cash-fl ow-to-debt ratio  increased more than 8 percentage points  to 34 percent. And our fi xed-charge-cov- erage ratio improved to 6.4 times. Debt  refinancing actions we completed in 2010  will con tribute to an expected decline in  interest expense for 2011.  We return significant cash to share- holders through dividends and share repur- chases. We paid dividends of $644 mil lion  in 2010, representing 42 percent of net  earnings. Our dividend rate increased  twice during the year, and in June 2010, our  board of directors approved a 17 percent  increase in the annualized dividend rate  effective with the August 2010 quarterly  payment. General Mills and its predeces- sor firm have paid regular dividends with- out interruption or reduction for 112 years,  and our goal is to continue increasing  dividends over time as our earnings grow.  Share repurchases are part of our  long-term growth model. Since 2007,  we’ve reduced diluted shares outstanding  by an average of 2 percent per year. In  June 2010, the board of directors approved  a new repurchase authorization for  100 million shares. Over 40 percent of our capital spending in  2010 was on growth projects. For example,  we’ve added production capacity for our  growing  Yoplait  yogurt business. 14 General Mills Average Diluted Shares Outstanding (shares in millions) Capital Expenditures (dollars in millions) Fiscal 2010 Capital Expenditures (percent of total investment) Growth 42% Essential 42% Cost Savings 16% 42% 16% 42% 11 700 10 09 08 07 650 563 522 460 Target 11 –2% 10 09 08 07 683 687 694 720 Target Total Debt (dollars in millions) Operating Cash Flow to Debt 10 09 08 6,426 7,076 7,000 34% 26% 25%