GENERAL MILLS INC 10-K form, page 55: 



























































































55 
Components of our lease cost are as follows:




Fiscal Year


In Millions

2023
2022
2021
Operating lease cost
$
127.6
$
129.7
$
132.7

Variable

lease cost
6.1
8.5
21.8
Short-term lease cost
30.0
29.1
23.4




Maturities of our operating and finance lease obligations by fiscal year are

as follows:




In Millions


Operating Leases


Finance Leases


Fiscal 2024

$
111.9
$
1.0

Fiscal 2025

86.4
0.6

Fiscal 2026

64.3
0.6

Fiscal 2027

42.9
0.3

Fiscal 2028

28.6
-
After fiscal 2028
68.6
-
Total noncancelable
future lease obligations
$
402.7
$
2.5

Less: Interest

(43.8)
(0.2)
Present value of lease obligations

$
358.9
$
2.3





The

lease
payments
presented

in


the

table
above
exclude
$
107.2

million

of

minimum
lease
payments

for

operating
leases
we
have 
committed to but have not yet commenced as of May 28, 2023.
The weighted-average remaining lease term and weighted-average
discount rate for our operating leases are as follows:



May 28, 2023


May 29, 2022

Weighted-average
remaining lease term
5.2
years
4.5
years
Weighted-average
discount rate
4.4
%
3.8
%




Supplemental operating cash flow information and non-cash activity related
to our operating leases are as follows:




Fiscal Year


In Millions

2023
2022
Cash paid for amounts included in the measurement of lease liabilities
$
129.9
$
128.7
Right of use assets obtained in exchange for new lease liabilities
$
124.4
$
84.6






NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES,


AND FAIR VALUES 


FINANCIAL INSTRUMENTS 


The

carrying
values

of

cash

and

cash
equivalents,
receivables,
accounts
payable,
other
current
liabilities,

and

notes
payable 
approximate fair

value. Marketable

securities are
carried at
fair value.

As of


May 28,


2023, and


May 29,


2022, a

comparison of
cost 
and market values of our marketable debt and equity securities is as follows:



Cost


Fair Value


Gross Unrealized Gains


Gross Unrealized Losses


Fiscal Year


Fiscal Year


Fiscal Year


Fiscal Year


In Millions

2023
2022
2023
2022
2023
2022
2023
2022

Available for

sale 

debt securities
$
2.3
$
2.3
$
2.3
$
2.3
$
-
$
-
$
-
$
-
Equity securities
117.5
250.1
122.7
255.3
5.2
5.2
10.0
15.1

Total

$
119.8
$
252.4
$
125.0
$
257.6
$
5.2
$
5.2
$
10.0
$
15.1




As of May 28, 2023, the fair value and carrying value
of equity securities restricted for payment of active employee
health and welfare 
benefits were $
117.2

million. 



 
, GENERAL MILLS INC 10-K form, page 56: 



















56 
There were 
no

realized gains or losses from sales
of marketable securities in
fiscal 2023 and 2022.
Gains and losses are determined

by 

specific identification. 

Classification


of

marketable
securities

as

current

or

noncurrent
is
dependent
upon
our
intended
holding
period

and


the

security's 
maturity date. The
aggregate unrealized gains
and losses on available
for sale debt securities,
net of tax effects,
are classified in AOCI 
within stockholders' equity.
Scheduled maturities of our marketable securities are as follows:



Marketable Securities


In Millions


Cost


Fair Value

Under 1 year (current)
$
2.3
$
2.3
Equity securities
117.5
122.7

Total

$
119.8
$
125.0




As of May 28, 2023, we had $
2.2

million of marketable debt securities pledged as collateral for derivative contracts. 

RISK MANAGEMENT ACTIVITIES 


As a

part of
our ongoing
operations, we
are exposed
to market
risks such
as changes
in interest
and foreign
currency exchange
rates 

and commodity and

equity prices. To
manage these risks, we
may enter into various
derivative transactions (e.g.,

futures, options, and 

swaps) pursuant to our established policies. 

COMMODITY PRICE RISK 

Many commodities we

use in the

production and distribution
of our products
are exposed to
market price risks.

We

utilize derivatives 
to manage price risk for our principal
ingredients and energy costs, including
grains (oats, wheat, and corn), oils
(principally soybean), 
dairy products, natural
gas, and diesel fuel.
Our primary objective
when entering into
these derivative contracts
is to achieve
certainty 

with

regard

to


the

future
price

of

commodities
purchased

for

use

in

our
supply
chain.

We

manage
our
exposures
through

a 

combination of purchase orders, long-term
contracts with suppliers, exchange-traded

futures and options, and over-the-counter

options 

and swaps.


We

offset
our exposures
based on
current and
projected market
conditions and
generally seek
to acquire
the inputs

at as 

close as possible to or below our planned cost. 

We 

use derivatives
to manage
our exposure
to changes
in commodity

prices. We

do not
perform the
assessments required
to achieve 
hedge
accounting

for

commodity
derivative
positions.
Accordingly,

the

changes

in


the

values

of

these
derivatives
are
recorded 
currently in cost of sales in our Consolidated Statements of Earnings.
Although we do
not meet the
criteria for
cash flow hedge
accounting, we believe
that these instruments
are effective
in achieving our 
objective of providing certainty
in the future price of commodities purchased
for use in our supply chain.

Accordingly, for

purposes of 
measuring
segment
operating
performance
these
gains

and

losses
are
reported

in

unallocated
corporate
items
outside

of

segment 
operating results
until such
time that
the exposure
we are
managing affects

earnings. At

that time
we reclassify
the gain
or loss
from 
unallocated
corporate
items

to

segment
operating
profit,
allowing
our
operating
segments

to

realize

the

economic
effects

of


the 

derivative without experiencing any resulting mark-to-market volatility,
which remains in unallocated corporate items.
Unallocated corporate items for fiscal 2023, 2022, and 2021 included:



Fiscal Year


In Millions

2023
2022
2021
Net (loss) gain on mark-to-market valuation of commodity positions
$
(154.4)
$
303.3
$
138.2
Net gain on commodity positions reclassified from unallocated corporate 

items to segment operating profit
(89.5)
(188.0)
(8.8)
Net mark-to-market revaluation of certain grain inventories
(48.0)
17.8
9.4
Net mark-to-market valuation of certain commodity positions recognized

in 


unallocated corporate items
$
(291.9)
$
133.1
$
138.8





 
, GENERAL MILLS INC 10-K form, page 57: 













57 

As


of


May

28,
2023,

the

net
notional
value

of

commodity
derivatives
was
$
406.8

million,

of

which
$
257.9

million
related

to 

agricultural inputs and $
148.9

million related to energy inputs. These contracts relate to inputs
that generally will be utilized within the 
next 
12

months.

INTEREST RATE RISK 


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. Primary exposures include U.S. Treasury

rates, SOFR, Euribor, and


commercial paper rates in the United States and 

Europe.

We

use
interest
rate
swaps,
forward-starting
interest
rate
swaps,

and

treasury
locks

to

hedge
our
exposure

to

interest
rate 
changes,

to

reduce

the

volatility

of

our
financing
costs,

and


to

achieve

a

desired
proportion

of

fixed-rate
versus
floating-rate
debt, 
based

on

current

and

projected
market
conditions.

Generally

under
these
swaps,
we
agree

with


a

counterparty

to

exchange

the 

difference between fixed-rate and floating-rate
interest amounts based on an agreed upon notional principal amount. 

Floating Interest


Rate Exposures

- Floating-to-fixed
interest rate
swaps are
accounted for
as cash
flow hedges,
as are
all hedges

of 

forecasted
issuances

of

debt.

Effectiveness

is
assessed
based

on

either

the

perfectly
effective
hypothetical
derivative
method

or 


changes in the

present value of
interest payments on
the underlying debt.
Effective gains
and losses deferred
to AOCI are
reclassified 
into earnings over the life of the associated debt.

Fixed


Interest


Rate


Exposures

-
Fixed-to-floating
interest
rate
swaps
are
accounted

for


as

fair
value
hedges

with

effectiveness 
assessed
based

on

changes

in


the

fair
value

of


the

underlying
debt

and

derivatives,
using
incremental
borrowing
rates
currently 
available on loans with similar terms and maturities.
During the fourth quarter of fiscal 2023, in advance of planned debt financing,
we entered into €
750.0

million of forward-starting 
swaps. The forward-starting swap agreements were terminated during
the fourth quarter of fiscal 2023, in conjunction with the 
Company's issuance of

a €

750.0

million 
6

-year fixed-rate note. Upon termination, a loss of $

5.0

million was recognized in AOCI and 
will be amortized through interest expense over the respective term of

the debt.

During the fourth quarter of fiscal 2023, in advance of planned debt
financing, we entered into $
500.0

million of treasury locks. The 
treasury locks were terminated during the fourth quarter of fiscal 2023, in
conjunction with the Company's issuance

of a $

1,000.0
million 
10

-year fixed-rate note. Upon termination, a loss of $

1.4

million was recognized in AOCI and will be amortized through 
interest expense over the respective term of the debt.
During the second quarter of fiscal 2023, we entered
into a $
500.0

million notional amount interest swap to convert our $
500.0

million 
fixed rate notes due 

November 18, 2025


, to a floating rate.


As of May 28,


2023, the pre-tax

amount of cash-settled
interest rate hedge
gain or loss
remaining in AOCI,
which will be
reclassified 
to earnings over the remaining term of the related underlying debt, follows:



In Millions

Gain/(Loss)
3.65
% notes due 

February 15, 2024

$
1.3
4.0
% notes due 

April 17, 2025

(1.1)
3.2
% notes due 

February 10, 2027

6.3
1.5
% notes due 

April 27, 2027

(1.3)
4.2
% notes due 

April 17, 2028

(5.0)
3.907
% notes due 

April 13, 2029

(4.9)
2.25
% notes due 

October 14, 2031

16.5
4.95
% notes due 

March 29, 2033

(1.4)
4.55
% notes due 

April 17, 2038

(8.1)
5.4
% notes due 

June 15, 2040

(9.5)
4.15
% notes due 

February 15, 2043

7.8
4.7
% notes due 

April 17, 2048

(11.8)
Net pre-tax hedge loss in AOCI
$
(11.2)





 
, GENERAL MILLS INC 10-K form, page 58: 









58 

The

following
table
summarizes

the

notional
amounts

and

weighted-average
interest
rates

of

our
interest
rate
derivatives.

Average 

floating rates are based on rates as of the end of the reporting period.



In Millions


May 28, 2023


May 29, 2022

Pay-floating swaps - notional amount
$
1,143.4
$
644.1
Average receive
rate
2.6
%
0.4
%
Average pay rate
2.5
%
0.1
%




The floating-rate swap contracts outstanding as of May 28, 2023, mature
in fiscal 
2026
.

FOREIGN EXCHANGE RISK 

Foreign currency
fluctuations affect
our net
investments in
foreign subsidiaries
and foreign
currency cash
flows related
to third
party 
purchases,
intercompany
loans, product

shipments, and

foreign-denominated
debt.

We

are also
exposed

to the

translation of
foreign 
currency
earnings

to


the

U.S.
dollar.

Our

principal
exposures
are

to


the


Australian

dollar,

Brazilian

real,

British

pound
sterling, 

Canadian

dollar,

Chinese renminbi,


euro, Japanese


yen, Mexican


peso, and


Swiss franc.


We

primarily
use foreign
currency forward 
contracts to selectively hedge our
foreign currency cash flow exposures.
We also
generally swap our foreign-denominated
commercial 
paper
borrowings

and

nonfunctional
currency
intercompany
loans
back

to U.S.

dollars

or


the

functional
currency

of the

entity

with 

foreign exchange exposure.
The gains or losses
on these derivatives offset
the foreign currency
revaluation gains or
losses recorded in 
earnings on the associated borrowings. We
generally do not hedge more than 18 months in advance. 
As of May 28, 2023, the net notional value of foreign exchange derivatives
was $
933.0

million. 

We

also have
net investments
in foreign
subsidiaries that
are denominated

in euros.


We

hedged a portion
of these net
investments by 
issuing
euro-denominated
commercial
paper

and

foreign
exchange
forward
contracts.

As of


May

28,
2023,
we
hedged

a

portion

of 

these net
investments

with €

2,949.9

million of
euro denominated
bonds.

As of


May 28,

2023,
we had
deferred
net foreign
currency 
transaction gains of $
71.9

million in AOCI associated with net investment hedging activity. 

EQUITY INSTRUMENTS 


Equity

price
movements
affect
our
compensation
expense

as

certain
investments
made

by

our
employees

in

our
deferred 
compensation plan
are revalued. We
use equity swaps
to manage this

risk. As of May


28, 2023, the

net notional amount
of our equity 
swaps was $
177.5

million. In fiscal 2024, $
165.4

million of swap contracts will mature,

and $

12.1

million of swap contracts mature

in 

fiscal 2025. 



 
, GENERAL MILLS INC 10-K form, page 59: 
























































59 

FAIR VALUE


MEASUREMENTS AND FINANCIAL STATEMENT


PRESENTATION 


The

fair
values

of

our
assets,
liabilities,

and

derivative
positions
recorded

at

fair
value

and

their
respective
levels

in


the

fair
value 

hierarchy as of May 28, 2023, and May 29, 2022, were as follows:




May 28, 2023


May 28, 2023


Fair Values


of Assets


Fair Values


of Liabilities


In Millions


Level 1


Level 2


Level 3


Total


Level 1


Level 2


Level 3


Total

Derivatives designated as hedging instruments:
Interest rate contracts (a) (b) 
$
-
$
-
$
-
$
-
$
-
$
(62.2)
$
-
$
(62.2)
Foreign exchange contracts (a) (c)
-
10.3
-
10.3
-
(2.5)
-
(2.5)

Total 

-
10.3
-
10.3
-
(64.7)
-
(64.7)
Derivatives not designated as hedging 

instruments:
Foreign exchange contracts (a) (c)
-
0.2
-
0.2
-
(5.6)
-
(5.6)
Commodity contracts (a) (d)
-
0.5
-
0.5
-
(29.3)
-
(29.3)
Grain contracts (a) (d)
-
2.3
-
2.3
-
(11.8)
-
(11.8)

Total 

-
3.0
-
3.0
-
(46.7)
-
(46.7)
Other assets and liabilities reported at fair value:
Marketable investments (a) (e) (f)
122.7
2.3
34.8
159.8
-
-
-
-
Long-lived assets (g)
-
1.0
-
1.0
-
-
-
-

Total 

122.7
3.3
34.8
160.8
-
-
-
-

Total assets, liabilities, and

derivative positions 

recorded at fair value
$
122.7
$
16.6
$
34.8
$
174.1
$
-
$
(111.4)
$
-
$
(111.4)




(a)
These contracts and investments
are recorded as prepaid
expenses and other current
assets, other assets, other
current liabilities or 
other liabilities,

as appropriate,

based on
whether in
a gain
or loss

position. Certain

marketable investments
are recorded
as cash 
and cash equivalents.
(b)

Based on EURIBOR and

swap rates. As

of May 28, 2023,

the carrying amount of
hedged debt designated
as the hedged item

in a 

fair value
hedge was
$
589.7

million and
was classified

on the


Consolidated Balance

Sheet within
long-term debt.

As of


May 28, 

2023, the cumulative amount of fair value hedging basis adjustments was $
53.7

million. 
(c)
Based on observable market transactions of spot currency rates and forward
currency prices. 
(d)
Based on prices of futures exchanges and recently reported transactions in

the marketplace. 

(e)
Based on prices of common stock, mutual fund net asset values, and bond matrix pricing. 
(f)
The level 3
marketable investment represents
an equity security
without a readily
determinable fair value.
During fiscal 2023,
we 
recorded
an impairment
charge

of $

32.4

million resulting
from the
determination of
fair value
utilizing level
3 inputs
including 
revised projections of future operating results and observable transaction data
for similar instruments. 
(g)
We recorded
$
8.6

million in non-cash impairment charges
in fiscal 2023 to write down
certain long-lived assets to their
fair value. 
Fair value
was based
on recently
reported transactions
for similar

assets in the


marketplace. These

assets had
a carrying value

of 

$
9.6

million and were associated with the restructuring actions described in Note 4.





 
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 56: 
56 The Procter & Gamble Company


Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which was guaranteed by the Company, was recorded as debt with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt was recorded as Interest expense. Dividends on all preferred shares are charged to Retained earnings.
The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows:

|    |                     |        |      |        |      |        |
|---:|:--------------------|:-------|:-----|:-------|:-----|:-------|
|  1 | Shares in thousands | 2023   | 2022 |        | 2021 |        |
|  2 | Allocated           | 24,449 |      | 25,901 |      | 27,759 |
|  3 | Unallocated         | 535    |      | 1,123  |      | 1,769  |
|  4 | TOTAL SERIES A      | 24,984 |      | 27,024 |      | 29,528 |
|  6 | Allocated           | 32,172 |      | 30,719 |      | 29,203 |
|  7 | Unallocated         | 17,867 |      | 20,120 |      | 22,349 |
|  8 | TOTAL SERIES B      | 50,039 |      | 50,839 |      | 51,552 |

For purposes of calculating diluted net earnings per common share, the preferred shares held by the ESOP are considered converted from inception.

NOTE 9


RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS

As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices.
If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument.

 Credit Risk Management

We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments.
Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position was $1,088 and $219 as of June 30, 2023 and 2022, respectively. The Company has not been required to post collateral as a result of these contractual features.

Interest Rate Risk Management

Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount.
We designate certain interest rate swaps on fixed rate debt that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. 

Foreign Currency Risk Management

We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company's diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. 
Amounts in millions of dollars except per share amounts or as otherwise specified.




, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 57: 
The Procter & Gamble Company 57


To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. 

Net Investment Hedging

We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. The time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the net investment being hedged. The time value component is subsequently reported in income on a systematic basis.

Commodity Risk Management 

Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. As of and during the fiscal years ended June 30, 2023 and 2022, we did not have any financial commodity hedging activity.

Insurance

We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract.

Fair Value Hierarchy

Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories:
•Level 1: Quoted market prices in active markets for identical assets or liabilities.
•Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
•Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets.
The Company had no significant activity with Level 3 assets and liabilities during the periods presented. When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. 
When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. 

Assets and Liabilities Measured at Fair Value

Cash equivalents were $6.8 billion and $6.0 billion as of June 30, 2023 and 2022, respectively, and are classified as Level 1 within the fair value hierarchy. The Company had no other material investments in debt or equity securities during the periods presented.
The fair value of long-term debt was $26.9 billion and $25.7 billion as of June 30, 2023 and 2022, respectively. This includes the current portion of long-term debt instruments ($3.9 billion as of June 30, 2023, and $3.6 billion as of June 30, 2022). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments.
Amounts in millions of dollars except per share amounts or as otherwise specified.




, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 58: 
58 The Procter & Gamble Company



Disclosures about Financial Instruments

The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2023 and 2022, are as follows:
|    |                                                     |                 |        |                  |                        |        |      |      |    |      |    |     |    |         |    |       |
|---:|:----------------------------------------------------|:----------------|:-------|:-----------------|:-----------------------|:-------|:-----|:-----|:---|:-----|:---|:----|:---|:--------|:---|:------|
|  1 |                                                     | Notional Amount |        | Fair Value Asset | Fair Value (Liability) |        |      |      |    |      |    |     |    |         |    |       |
|  2 | As of June 30                                       | 2023            |        | 2022             | 2023                   |        | 2022 | 2023 |    | 2022 |    |     |    |         |    |       |
|  3 | DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS     |                 |        |                  |                        |        |      |      |    |      |    |     |    |         |    |       |
|  4 | Interest rate contracts                             | $               | 4,044  |                  | $                      | 4,972  |      | $    | -  |      | $  | 3   | $  | (445)   | $  | (307) |
|  5 | DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS |                 |        |                  |                        |        |      |      |    |      |    |     |    |         |    |       |
|  6 | Foreign currency interest rate contracts            | $               | 11,005 |                  | $                      | 7,943  |      | $    | 26 |      | $  | 561 | $  | (631)   | $  | (1)   |
|  7 | TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | $               | 15,049 |                  | $                      | 12,915 |      | $    | 26 |      | $  | 564 | $  | (1,076) | $  | (308) |
|  9 | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS   |                 |        |                  |                        |        |      |      |    |      |    |     |    |         |    |       |
| 10 | Foreign currency contracts                          | $               | 3,489  |                  | $                      | 5,625  |      | $    | 7  |      | $  | 6   | $  | (42)    | $  | (61)  |
| 12 | TOTAL DERIVATIVES AT FAIR VALUE                     | $               | 18,538 |                  | $                      | 18,540 |      | $    | 33 |      | $  | 570 | $  | (1,118) | $  | (369) |
The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $3.6 billion and $4.7 billion as of June 30, 2023 and 2022, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $11.8 billion and $11.2 billion as of June 30, 2023 and 2022, respectively. The increase in the notional balance of derivative instruments designated as net investment hedges is primarily driven by the Company's decision to leverage favorable interest rate spreads in the foreign currency swap market. The decrease in the notional balance of foreign currency contracts not designated as hedging instruments reflects changes in the level of intercompany financing activity during the period.
Derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. Derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. Changes in the fair value of net investment hedges are recognized in the Foreign currency translation component of Other comprehensive income (OCI). All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. 
Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows:
|    |                                                             |                                                        |       |      |    |       |
|---:|:------------------------------------------------------------|:-------------------------------------------------------|:------|:-----|:---|:------|
|  1 |                                                             | Amount of Gain/(Loss) Recognized in OCI on Derivatives |       |      |    |       |
|  2 | Fiscal years ended June 30                                  | 2023                                                   |       | 2022 |    |       |
|  3 | DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) |                                                        |       |      |    |       |
|  4 | Foreign currency interest rate contracts                    | $                                                      | (544) |      | $  | 1,033 |
(1)For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $238 and $73 for the fiscal years ended June 30, 2023 and 2022, respectively.
(2)In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $(315) and $1,639, for the fiscal years ended June 30, 2023 and 2022, respectively.
|    |                                                   |                                              |       |      |    |       |
|---:|:--------------------------------------------------|:---------------------------------------------|:------|:-----|:---|:------|
|  1 |                                                   | Amount of Gain/(Loss) Recognized in Earnings |       |      |    |       |
|  2 | Fiscal years ended June 30                        | 2023                                         |       | 2022 |    |       |
|  3 | DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS   |                                              |       |      |    |       |
|  4 | Interest rate contracts                           | $                                            | (141) |      | $  | (450) |
|  5 | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS |                                              |       |      |    |       |
|  6 | Foreign currency contracts                        | $                                            | (97)  |      | $  | (149) |
The loss on the derivatives in fair value hedging relationships is fully offset by the mark-to-market impact of the related exposure. These are both recognized in the Consolidated Statement of Earnings in Interest Expense. The loss on derivatives not designated as hedging instruments is substantially offset by the currency mark-to-market of the related exposure. These are both recognized in the Consolidated Statements of Earnings in SG&A.
Amounts in millions of dollars except per share amounts or as otherwise specified.




, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 59: 
The Procter & Gamble Company 59



NOTE 10


SHORT-TERM AND LONG-TERM DEBT

|    |                                                                |       |        |       |     |       |
|---:|:---------------------------------------------------------------|:------|:-------|:------|:----|:------|
|  1 | As of June 30                                                  | 2023  |        | 2022  |     |       |
|  2 | DEBT DUE WITHIN ONE YEAR                                       |       |        |       |     |       |
|  3 | Current portion of long-term debt                              | $     | 3,951  |       | $   | 3,647 |
|  4 | Commercial paper                                               | 6,236 |        | 4,805 |     |       |
|  5 | Other                                                          | 42    |        | 193   |     |       |
|  6 | TOTAL                                                          | $     | 10,229 |       | $   | 8,645 |
|  7 | Weighted average interest rate of debt due within one year (1) | 4.2   | %      |       | 0.8 | %     |
(1)Weighted average interest rate of debt due within one year includes the effects of interest rate swaps discussed in Note 9.
 |    |                                                      |         |        |         |    |        |
|---:|:-----------------------------------------------------|:--------|:-------|:--------|:---|:-------|
|  1 | As of June 30                                        | 2023    |        | 2022    |    |        |
|  2 | LONG-TERM DEBT                                       |         |        |         |    |        |
|  3 | 3.10% USD note due August 2023                       | $       | 1,000  |         | $  | 1,000  |
|  4 | 1.13% EUR note due November 2023                     | 1,359   |        | 1,306   |    |        |
|  5 | 0.50% EUR note due October 2024                      | 544     |        | 523     |    |        |
|  6 | 0.63% EUR note due October 2024                      | 870     |        | 836     |    |        |
|  7 | 0.55% USD note due October 2025                      | 1,000   |        | 1,000   |    |        |
|  8 | 4.10% USD note due January 2026                      | 650     |        | -       |    |        |
|  9 | 2.70% USD note due February 2026                     | 600     |        | 600     |    |        |
| 10 | 1.00% USD note due April 2026                        | 1,000   |        | 1,000   |    |        |
| 11 | 3.25% EUR note due August 2026                       | 707     |        | -       |    |        |
| 12 | 2.45% USD note due November 2026                     | 875     |        | 875     |    |        |
| 13 | 1.90% USD note due February 2027                     | 1,000   |        | 1,000   |    |        |
| 14 | 2.80% USD note due March 2027                        | 500     |        | 500     |    |        |
| 15 | 4.88% EUR note due May 2027                          | 1,087   |        | 1,045   |    |        |
| 16 | 2.85% USD note due August 2027                       | 750     |        | 750     |    |        |
| 17 | 3.95% USD note due January 2028                      | 600     |        | -       |    |        |
| 18 | 1.20% EUR note due October 2028                      | 870     |        | 836     |    |        |
| 19 | 1.25% EUR note due October 2029                      | 544     |        | 523     |    |        |
| 20 | 3.00% USD note due March 2030                        | 1,500   |        | 1,500   |    |        |
| 21 | 0.35% EUR note due May 2030                          | 544     |        | 523     |    |        |
| 22 | 1.20% USD note due October 2030                      | 1,250   |        | 1,250   |    |        |
| 23 | 1.95% USD note due April 2031                        | 1,000   |        | 1,000   |    |        |
| 24 | 3.25% EUR note due August 2031                       | 707     |        | -       |    |        |
| 25 | 2.30% USD note due February 2032                     | 850     |        | 850     |    |        |
| 26 | 4.05% USD note due January 2033                      | 850     |        | -       |    |        |
| 27 | 5.55% USD note due March 2037                        | 716     |        | 716     |    |        |
| 28 | 1.88% EUR note due October 2038                      | 544     |        | 523     |    |        |
| 29 | 3.55% USD note due March 2040                        | 516     |        | 516     |    |        |
| 30 | 0.90% EUR note due November 2041                     | 652     |        | 627     |    |        |
| 31 | All other long-term debt                             | 5,244   |        | 7,196   |    |        |
| 32 | Current portion of long-term debt                    | (3,951) |        | (3,647) |    |        |
| 33 | TOTAL                                                | $       | 24,378 |         | $  | 22,848 |
| 34 | Weighted average interest rate of long-term debt (1) | 2.9%    |        | 2.2%    |    |        |
(1)Weighted average interest rate of long-term debt includes the effects of interest rate swaps discussed in Note 9.
Amounts in millions of dollars except per share amounts or as otherwise specified.






Question: Compare the risk management instruments used by General Mills and The Procter & Gamble Company, focusing on forex risk, interest rate risk, and other financial instruments for the fiscal year 2023.
Answer: General Mills uses various derivative instruments to manage commodity price risk, interest rate risk, and foreign exchange risk. The company reported a net notional value of commodity derivatives of $406.8 million, interest rate swaps to manage exposure to interest rate changes, and foreign exchange derivatives with a net notional value of $933.0 million. The company also hedges net investments in foreign subsidiaries using euro-denominated bonds and foreign exchange forward contracts.
The Procter & Gamble Company also uses derivative instruments to manage interest rate risk, foreign currency risk, and net investment hedging. P&G reported interest rate contracts with a notional amount of $4,044 million, foreign currency interest rate contracts with a notional amount of $11,005 million, and foreign currency contracts with a notional amount of $3,489 million. P&G's net investment hedges include foreign currency swaps and foreign currency-denominated debt instruments.
Both companies actively manage financial risks using derivatives, but P&G has a larger notional amount of derivatives, reflecting its larger scale and more extensive global operations.