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| GIS > SEC Filings for GIS > Form 8-K on 11-Mar-2009 | All Recent SEC Filings |
11-Mar-2009
Costs Associated with Exit or Disposal Activities, Change in Directors or Princ
On March 9, 2009, General Mills, Inc. (the "Company") entered into an agreement to sell a portion of the assets of the frozen unbaked bread dough product line for its Bakeries and Foodservice segment. The Company expects the transaction to close during the fourth quarter of fiscal 2009, and expects to record a loss of approximately $19 million after taxes in the fourth quarter of fiscal 2009 in connection with the sale, primarily the result of the write-off of associated goodwill.
Certain assets being sold are shared with a frozen dinner roll product line for the Company's U.S. Retail segment. As a result of the sale, the Company will exit this product line. The Company expects to record an after-tax charge of approximately $13 million in the fourth quarter of fiscal 2009 related to the termination of this product line, consisting of a $20 million pre-tax non-cash impairment charge against long-lived assets and approximately $1 million pre-tax of other costs associated with the exit of the product line, primarily employee severance.
The Company will present this transaction as a Divestiture in its Consolidated Statements of Earnings.
Election of Director
On March 9, 2009, the Board of Directors of the Company elected R. Kerry Clark to the Company's Board of Directors. Mr. Clark's tenure is expected to begin at the next board meeting scheduled for May 4, 2009. All new non-employee directors receive restricted stock units and stock options when they attend their first board meeting. The restricted stock units and stock options are each valued at $90,000 and vest on the date of the Company's next Annual Stockholders' Meeting. A copy of the press release announcing Mr. Clark's election is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
(d) Exhibits.
99.1 Press Release of General Mills, Inc. dated March 9, 2009.
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