This year`s corporate unallocated items include a $35 million netreduction in carrying values of

This year`s corporate unallocated items include a $35 million netreduction in carrying values of various corporate investments, compared to aprior-year net gain of $16 million on corporate investments. Fiscal 2009corporate items also include a $41 million insurance recovery related to a plantfire in Argentina, and a $16 million incremental contribution to the GeneralMills Foundation corpus. Unallocated corporate items represented expense of $361 million in 2009 comparedto expense of $157 million in 2008. The increase in expense includes a $119million net reduction in mark-to-market valuation of certain commoditypositions, compared to a $57 million net gain in mark-to-market valuation lastyear. Fourth-quarter earnings from joint ventures totaled $12 million. That was belowlast year`s fourth-quarter earnings of $31 million, which more than doubled from2007 results.

Corporate ItemsRestructuring, impairment and other exit costs totaled $42 million in fiscal2009, with $35 million of that total falling in the fourth quarter. Theserestructuring actions are described in Note 4 to the financial statementsattached below. General Mills also recorded a net gain of $85 million from thedivestitures of three product lines, as described in Note 3 to the financialstatements below. Joint Venture SummaryAfter-tax earnings from joint ventures totaled $92 million in 2009.

Prior-yearjoint-venture earnings of $111 million included an $8 million net gain fromrestructuring actions at Cereal Partners Worldwide (CPW) and a $2 million gainfrom the sale of General Mills` 50-percent share of the 8th Continent soymilkbusiness. A tax adjustment in the fourth quarter and foreign exchange effectsaccount for the remainder of the earnings decline. General Mills` proportionate share of joint-venture net sales totaled $1.2billion in 2009. The company`s 50-percent share of CPW net sales exceeded $1billion, and pound volume for the venture grew 4 percent. Net sales for theHaagen-Dazs ice cream venture in Japan totaled $197 million.

Pound volumedeclined for the year, reflecting the difficult economic environment. Excluding grain merchandising earnings from both 2009 and 2008results, Bakeries and Foodservice operating profits grew 15 percent in 2009,reflecting successful efforts to emphasize higher-margin product lines andcustomer channels. Foreignexchange effects reduced joint venture net sales by 6 percentage points. In the fourth quarter, Bakeries and Foodservice net sales declined 9 percent,including the divestiture of two product lines. Pound volume essentially matchedyear-ago levels, and operating profits rose sharply primarily due to lower inputcosts year-over-year.

Pound volume declined 6 percent, reflecting weak foodservice industrytrends. However, segment operating profits grew 3 percent to reach $171 million.Prior-year results for Bakeries and Foodservice included unusually strong grainmerchandising earnings that resulted from significant commodity price increasesthat year. International segment operatingprofits declined 3 percent as foreign currency exchange reduced profit growth by14 percentage points. In the fourth quarter, International segment net sales declined 5 percent asreported, but foreign currency exchange reduced net sales growth by 17percentage points. On a constant-currency basis, net sales increased 12 percentwith pound volume up 5 percent in the quarter. Segment operating profitsdeclined 12 percent to $54 million, reflecting negative foreign currencyexchange effects.