We believe this measure provides useful information to investors because it is important for assessing our operating profit margin on a comparable year-to-year basis. After-tax earnings from joint ventures growth rates on a constant-currency basis are calculated as follows: Percentage change in after-tax earnings from joint ventures as reported, Percentage change in after-tax earnings from joint ventures on a constant-currency basis, Net Sales Growth Rate for Canada Operating Unit on a Constant-currency Basis. We exceeded our organic net sales growth goal for our Pet segment, driven by a successful expansion of BLUE into additional customer outlets and a significant increase in household penetration for the brand. Click here to enroll in electronic delivery of our Proxy Statement and Annual Report in the future. Benefits for salaried employees are based on length of service and final average compensation. Certain equity-based compensation plans contain provisions that accelerate vesting of awards upon retirement, termination, or death of eligible employees and directors. We used the net proceeds, together with cash on hand, to repay €500.0 million of floating rate notes and €300.0 million of 0.0 percent fixed-rate notes. The calculations do not include the underlying foreign exchange and commodities or equity-related positions that are offset by these market-risk-sensitive instruments. Our future success and earnings growth depend in part on our ability to be efficient in the production and manufacture of our products in highly competitive markets. NOTE 5. By their nature, these projections and assumptions are uncertain. The new standard amends the hedge accounting recognition and presentation requirements to better align an entity's risk management activities and financial reporting. Performance share units are settled in common stock and are generally subject to a three year performance and vesting period. Competition in our product categories is based on product innovation, product quality, price, brand recognition and loyalty, effectiveness of marketing, promotional activity, convenient ordering and delivery to the consumer, and the ability to identify and satisfy consumer preferences. 2 Jul 20 Files SEC. The aggregate unrealized gains and losses on available-for-sale debt securities, net of tax effects, are classified in AOCI within stockholders' equity. Our investments in companies over which we have the ability to exercise significant influence are stated at cost plus our share of undistributed earnings or losses. We also utilize approximately 15 million square feet of warehouse and distribution space, nearly all of which is leased, that primarily supports our North America Retail segment. average organic net sales growth and cumulative free cash flow. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Concerns with the safety and quality of our products could cause consumers to avoid certain products or ingredients. We believe our brand-building strategy is the key to winning and sustaining leading share positions in markets around the globe. We believe this measure of our Canada operating unit net sales provides useful information to investors because it provides transparency to the underlying performance for the Canada operating unit within our North America Retail segment by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given volatility in foreign currency exchange markets. The combination of our continued strong levels of Holistic Margin Management (HMM) savings, volume growth, and positive net price realization and mix offset input cost inflation and increased investments in brand building and capabilities, resulting in significant growth in constant-currency adjusted operating profit and adjusted diluted EPS. The significant assumptions used to estimate fair value include revenue growth and profitability, royalty rates, capital spending, depreciation and taxes, foreign currency exchange rates, and a discount rate. We do not have material contract assets or liabilities arising from our contracts with customers. However, on a limited case-by-case. Interest, net for fiscal 2020 totaled $466 million, $56 million lower than fiscal 2019, primarily driven by lower average debt levels. Most arrangements are cancelable without a significant penalty and with short notice (usually 30 days). Each restructuring action normally takes one to two years to complete. Total committed and uncommitted credit facilities. Management has established a system of internal controls that provides reasonable assurance that assets are adequately safeguarded and transactions are recorded accurately in all material respects, in accordance with management's authorization. We own and lease a number of dedicated sales and administrative offices around the world, totaling approximately 3 million square feet. Adverse publicity about these types of concerns, whether or not valid, may discourage consumers from buying our products or cause production and delivery disruptions. Our people are inspired by purpose. Within asset classes, the portfolios are further diversified across investment styles and investment organizations. As of May 31, 2020, assets held for sale were insignificant. See Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in Item 7 of this report for a description of our segments. We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of floating-rate debt. General Mills is a place that prioritizes being a force for good, a place to expand learning, explore new perspectives and reimagine new possibilities, every day. Information related to our cash flow hedges, fair value hedges, and other derivatives not designated as hedging instruments for the fiscal years ended May 31, 2020, and May 26, 2019, follows: The following tables reconcile the net fair values of assets and liabilities subject to offsetting arrangements that are recorded in our Consolidated Balance Sheets to the net fair values that could be reported in our Consolidated Balance Sheets: Collateral Amount Recognized Balance Liabilities, AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS. Click the button below to request a report when hardcopies become available. Postemployment benefit plans are not funded and had benefit obligations of $150.3 million and $128.0 million as of May 31, 2020 and May 26, 2019, respectively. If current expectations for growth rates for sales and margins are not met, or other market factors and macroeconomic conditions that could be affected by the COVID-19 pandemic or otherwise were to change, then our indefinite-lived intangible assets could become significantly impaired. As of May 31, 2020, $43.5 million of certain accounts receivable were pledged as collateral against a foreign uncommitted line of credit. The words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "plan," "project," or similar expressions identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Additional potential risks associated with acquisitions include additional debt leverage, the loss of key employees and customers of the acquired business, the assumption of unknown liabilities, the inherent risk associated with entering a geographic area or line of business in which we have no or limited prior experience, failure to achieve anticipated synergies, and the impairment of goodwill or other acquisition-related intangible assets. Dana M. McNabb, age 44, is Group President, Europe & Australia.