Fiscal 2010 vs. 2009 Fiscal 2009 vs. 2008 ......................................................................................................................................................................................... Foodservice Distributors (2)% 2% Convenience Stores 3 8 Bakeries and National Restaurant Accounts (21) Flat ......................................................................................................................................................................................... Total (14)% 1% Fiscal 2010 vs. 2009 Fiscal 2009 vs. 2008 ......................................................................................................................................................................................... CPW 6% 5% HDJ (4) 2 ......................................................................................................................................................................................... Joint Ventures 4% 3% Joint Venture Change in Net Sales Bakeries and Foodservice Net Sales Percentage Change by Customer Channel 29 Annual Report 2010 We realigned our Bakeries and Foodservice customer channels in fiscal 2010 and reclassified previous years to conform to the current year presentation. increase in expense was driven primarily by a $176 million net increase in expense related to mark-to-market valuations of certain commodity positions and grain inventories. We also recorded write-downs of $35 million related to various corporate investments in fiscal 2009, compared to a net gain of $16 million in fiscal 2008, and a $16 million increase in contributions to the General Mills Foundation, offset by a fiscal 2009 gain from an insurance settlement as discussed above under the heading “Fiscal 2009 Consolidated Results of Operations”. Joint Ventures In addition to our consolidated operations, we participate in two joint ventures. We have a 50 percent equity interest in CPW, which manufactures and markets ready-to-eat cereal products in more than 130 countries and republics outside the United States and Canada. CPW also markets cereal bars in several European countries and manufactures private label cere- als for customers in the United Kingdom. We also have a 50 per- cent equity interest in HDJ, which manufactures, distributes, and markets Ha ¨agen-Dazs ice cream products and frozen novelties. During fiscal 2008, the 8th Continent soy milk business was sold. In fiscal 2010, segment operating profit was $250 million, up from $171 million in fiscal 2009. The increase was due to lower input costs, plant operating performance, and increased grain merchandising earnings. Segment operating profit was $171 million in fiscal 2009, up 3 percent from $165 million in fiscal 2008. The increase was due to margin expansion and HMM efforts which offset significant vol- ume declines and lower grain merchandising activities. Unallocated Corporate Items Unallocated corporate items include variances to planned corporate overhead expenses, variances to planned domestic employee benefits and incentives, all stock compensation costs, annual contributions to the General Mills Foundation, and other items that are not part of our measurement of segment operating performance.This includes gains and losses from mark-to-market valuation of certain commodity positions until passed back to our operating segments in accordance with our policy as discussed in Note 2 of the Consolidated Financial Statements on page 51 of this report. Our share of after-tax joint venture earnings increased from $92 million in fiscal 2009 to $102 million in fiscal 2010.The increase is mainly due to lower fiscal 2009 earnings which were reduced by a $6 million deferred income tax valuation allowance. Our share of after-tax joint venture earnings decreased from $111 million in fiscal 2008 to $92 million in fiscal 2009. In fiscal 2009, earnings were reduced by a $6 million deferred income tax valuation allowance. In fiscal 2008, earnings included $16 million for our share of a gain on the sale of a CPW property in the United Kingdom partially offset by restructuring expenses of $8 million. Also, fiscal 2008 results included $2 million for our share of a gain on the sale of the 8th Continent soymilk business. The change in net sales for each joint venture is set forth in the following table: For fiscal 2010, unallocated corporate expense totaled $224 mil- lion compared to $361 million last year. In fiscal 2010 we recorded a $7 million net increase in expense related to mark-to-market valuation of certain commodity positions and grain inventories, compared to a $119 million net increase in expense last year. Also in fiscal 2010, we recorded a $13 million recovery against a cor- porate investment compared to $35 million of write-downs against various investments in fiscal 2009. In fiscal 2009, we recognized a $41 million gain from an insurance settlement. Unallocated corporate expense totaled $361 million in fiscal 2009 compared to $157 million in fiscal 2008. The $204 million