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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)


  x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED FEBRUARY 7, 2005

  o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ TO _____

Commission file number:   1-1185


GENERAL MILLS, INC.
(Exact name of registrant as specified in its charter)


Delaware 41-0274440
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

Number One General Mills Boulevard
Minneapolis, MN 55426
(Mail: P.O. Box 1113) (Mail: 55440)
(Address of principal executive offices) (Zip Code)

(763) 764-7600
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes    X      No _____

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).   Yes    X      No _____

As of March 16, 2005, General Mills had 369,697,327 shares of its $.10 par value common stock outstanding (excluding 137,609,337 shares held in treasury).




Part I.     FINANCIAL INFORMATION

Item 1.      Financial Statements.

GENERAL MILLS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)     (In Millions, Except per Share Data)


Thirteen Weeks Ended
 Thirty-nine Weeks Ended
Feb. 27,
2005
 Feb. 22,
2004
 Feb. 27,
2005
 Feb. 22,
2004
Net Sales     $ 2,772   $ 2,703   $ 8,525   $ 8,281  
Costs and Expenses:   
   Cost of sales    1,695    1,638    5,165    4,909  
   Selling, general and administrative    580    589    1,828    1,857  
   Interest, net    107    123    345    384  
   Restructuring and other exit costs    3    5    46    14  
     Total Costs and Expenses    2,385    2,355    7,384    7,164  
Earnings before Income Taxes and   
     Earnings from Joint Ventures    387    348    1,141    1,117  
 
Income Taxes    180    121    434    391  
 
Earnings from Joint Ventures    23    15    73    51  
 
Net Earnings   $ 230   $ 242   $ 780   $ 777  
Earnings per Share - Basic   $.63   $. 64   $2.10   $2.08  
Earnings per Share - Diluted   $.58   $. 60   $1.94   $1.92  
Dividends per Share   $.310   $. 275   $. 930   $. 825  
 
See accompanying notes to consolidated financial statements.

Page 2

GENERAL MILLS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)     (In Millions)


February 27,
2005
 February 22,
2004
 May 30,
2004
ASSETS                
Current Assets:  
   Cash and cash equivalents   $ 597   $ 710   $ 751  
   Receivables    1,048    1,052    1,010  
   Inventories:  
     Valued primarily at FIFO    318    340    298  
     Valued at LIFO (FIFO value exceeds LIFO by  
        $47, $33 and $41, respectively)    801    814    765  
   Prepaid expenses and other current assets    177    184    222  
   Deferred income taxes    191    178    169  
        Total Current Assets    3,132    3,278    3,215  
 
Land, Buildings and Equipment, at Cost    5,468    5,208    5,319  
   Less accumulated depreciation    (2,451 )  (2,165 )  (2,208 )
        Net Land, Buildings and Equipment    3,017    3,043    3,111  
Goodwill    6,711    6,690    6,684  
Other Intangible Assets    3,640    3,640    3,641  
Other Assets    1,960    1,883    1,797  
Total Assets   $ 18,460   $ 18,534   $ 18,448  
LIABILITIES AND EQUITY  
Current Liabilities:  
   Accounts payable   $ 973   $ 1,075   $ 1,110  
   Current portion of long-term debt    29    222    233  
   Notes payable    782    714    583  
   Other current liabilities    889    651    831  
        Total Current Liabilities    2,673    2,662    2,757  
Long-term Debt    6,616    7,767    7,410  
Deferred Income Taxes    1,842    1,740    1,773  
Other Liabilities    904    1,026    961  
        Total Liabilities    12,035    13,195    12,901  
 
Minority Interests    1,133    299    299  
 
Stockholders’ Equity:  
   Cumulative preference stock, none issued    —    —    —  
   Common stock, 502 shares issued    5,727    5,740    5,680  
   Retained earnings    4,156    3,548    3,722  
   Less common stock in treasury, at cost, shares  
     of 133, 126 and 123, respectively    (4,466 )  (4,005 )  (3,921 )
   Unearned compensation    (126 )  (97 )  (89 )
   Accumulated other comprehensive income (loss)    1    (146 )  (144 )
        Total Stockholders’ Equity    5,292    5,040    5,248  
 
Total Liabilities and Equity   $ 18,460   $ 18,534   $ 18,448  
 
See accompanying notes to consolidated financial statements.

Page 3

GENERAL MILLS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)     (In Millions)

Thirty-nine Weeks Ended
February 27,
2005
 February 22,
2004
Cash Flows - Operating Activities:            
   Net earnings   $ 780   $ 777  
   Adjustments to reconcile net earnings to cash flow:  
      Depreciation and amortization    330    291  
      Deferred income taxes    26    96  
      Changes in current assets and liabilities  
            excluding effects of businesses acquired    (170 )  (435 )
      Tax benefit on exercised options    56    43  
      Pension and other postretirement activity    (65 )  (47 )
      Restructuring and other exit costs    46    14  
      Other, net    (15 )  12  
        Net Cash Provided by Operating Activities    988    751  
Cash Flows - Investing Activities:  
   Purchases of land, buildings and equipment    (238 )  (403 )
   Investments in businesses, intangibles and affiliates,  
      net of investment returns and dividends    15    (43 )
   Purchases of marketable investments    (1 )  (7 )
   Proceeds from sale of marketable investments    32    88  
   Proceeds from disposal of land, buildings & equipment    17    22  
   Other, net    1    8  
        Net Cash Used by Investing Activities    (174 )  (335 )
Cash Flows - Financing Activities:  
   Change in notes payable    (573 )  (535 )
   Issuance of long-term debt    2    576  
   Payment of long-term debt    (286 )  (246 )
   Proceeds from minority investors    835    —  
   Common stock issued    179    122  
   Purchases of common stock for treasury    (766 )  (14 )
   Dividends paid    (346 )  (309 )
   Other, net    (13 )  (3 )
        Net Cash Used by Financing Activities    (968 )  (409 )
(Decrease) Increase in Cash and Cash Equivalents   $ (154 ) $ 7  
Cash Flows from Changes in Current Assets and  
   Liabilities, Excluding Effects of Businesses Acquired:  
      Receivables    (29 )  (40 )
      Inventories    (37 )  (50 )
      Prepaid expenses and other current assets    38    1  
      Accounts payable    (179 )  (199 )
      Other current liabilities    37    (147 )
Changes in Current Assets and Liabilities   $ (170 ) $ (435 )
 
See accompanying notes to consolidated financial statements.

Page 4

GENERAL MILLS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

(1)   Background

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature. Oper