{"url_path":"/sec/gis/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A Quantitative and Qualitative Disclosures About Market Risk","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-07-01","source_url":"https://www.sec.gov/Archives/edgar/data/40704/0001628280-26-046466-index.html","accession_number":"0001628280-26-046466","cik":"0000040704","ticker":"GIS","issuer_name":"GENERAL MILLS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/40704/0001628280-26-046466-index.html","primary_entity_key":"0000040704","primary_entity_name":"GENERAL MILLS INC"},"word_count":995,"has_tables":true,"body_markdown":"ITEM 7A - Quantitative and Qualitative Disclosures About Market Risk\n\nWe are exposed to market risk stemming from changes in interest and foreign exchange rates and commodity and equity prices.\n\nChanges in these factors could cause fluctuations in our earnings and cash flows. In the normal course of business, we actively manage\n\nour exposure to these market risks by entering into various hedging transactions, authorized under established policies that place\n\ncontrols on these activities. The counterparties in these transactions are generally highly rated institutions. We establish credit limits\n\nfor each counterparty. Our hedging transactions include but are not limited to a variety of derivative financial instruments. For\n\ninformation on interest rate, foreign exchange, commodity price, and equity instrument risk, please refer to Note 8 to the Consolidated\n\nFinancial Statements in Item 8 of this report.\n\n38\n\nVALUE AT RISK\n\nThe estimates in the table below are intended to measure the maximum potential fair value we could lose in one day from adverse\n\nchanges in market interest rates, foreign exchange rates, commodity prices, and equity prices under normal market conditions. A\n\nMonte Carlo value-at-risk (VAR) methodology was used to quantify the market risk for our exposures. The models assumed normal\n\nmarket conditions and used a 95 percent confidence level.\n\nThe VAR calculation used historical interest and foreign exchange rates, and commodity and equity prices from the past year to\n\nestimate the potential volatility and correlation of these rates in the future. The market data were drawn from the RiskMetrics™ data\n\nset. The calculations are not intended to represent actual losses in fair value that we expect to incur. Further, since the hedging\n\ninstrument (the derivative) inversely correlates with the underlying exposure, we would expect that any loss or gain in the fair value of\n\nour derivatives would be generally offset by an increase or decrease in the fair value of the underlying exposure. The positions\n\nincluded in the calculations were: debt; investments; interest rate swaps; foreign exchange forwards; commodity swaps, futures, and\n\noptions; and equity instruments. The calculations do not include the underlying foreign exchange and commodities or equity-related\n\npositions that are offset by these market-risk-sensitive instruments.\n\nThe table below presents the estimated maximum potential VAR arising from a one-day loss in fair value for our interest rate, foreign\n\ncurrency, commodity, and equity market-risk-sensitive instruments outstanding as of May 31, 2026.\n\nIn Millions\n\nMay 31, 2026\n\nAverage During\n\nFiscal 2026\n\nMay 25, 2025\n\nAnalysis of Change\n\nInterest rate instruments\n\n$37\n\n$37\n\n$46\n\nDecrease in portfolio basis\n\nForeign currency instruments\n\n46\n\n48\n\n51\n\nDecrease in rate volatility\n\nCommodity instruments\n\n4\n\n3\n\n3\n\nImmaterial\n\nEquity instruments\n\n2\n\n3\n\n3\n\nImmaterial\n\n39\n\nCAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE\n\nHARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995\n\nThis report contains or incorporates by reference forward-looking statements within the meaning of the Private Securities Litigation\n\nReform Act of 1995 that are based on our current expectations and assumptions. We also may make written or oral forward-looking\n\nstatements, including statements contained in our filings with the SEC and in our reports to shareholders.\n\nThe words or phrases “will likely result,” “are expected to,” “may continue,” “is anticipated,” “estimate,” “plan,” “project,” or similar\n\nexpressions identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such\n\nstatements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results and\n\nthose currently anticipated or projected. We wish to caution you not to place undue reliance on any such forward-looking statements.\n\nIn connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we are identifying important\n\nfactors that could affect our financial performance and could cause our actual results in future periods to differ materially from any\n\ncurrent opinions or statements.\n\nOur future results could be affected by a variety of factors, such as: imposed and threatened tariffs by the United States and its trading\n\npartners; disruptions or inefficiencies in the supply chain; competitive dynamics in the consumer foods industry and the markets for\n\nour products, including new product introductions, advertising activities, pricing actions, and promotional activities of our\n\ncompetitors; economic conditions, including changes in inflation rates, interest rates, tax rates, tariffs, or the availability of capital;\n\nproduct development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing\n\nactions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in\n\nthe legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the\n\ncarrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets;\n\nchanges in accounting standards and the impact of critical accounting estimates; product quality and safety issues, including recalls\n\nand product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional\n\nprograms; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related\n\nissues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers;\n\nfluctuations in the cost and availability of supply chain resources, including raw materials, packaging, energy, and transportation;\n\neffectiveness of restructuring, transformation, and cost saving initiatives; volatility in the market value of derivatives used to manage\n\nprice risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan\n\nliabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations\n\nand tariffs; and political unrest in foreign markets and economic uncertainty due to terrorism or war.\n\nYou should also consider the risk factors that we identify in Item 1A of this report, which could also affect our future results.\n\nWe undertake no obligation to publicly revise any forward-looking statements to reflect events or circumstances after the date of those\n\nstatements or to reflect the occurrence of anticipated or unanticipated events.\n\n40"}