GENERAL MILLS INC 10-K form, page 54: 









































































































54 
The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023
are as follows:



In Millions


North 


America 


Retail


Pet


North 


America 


Foodservice


International


Joint 


Ventures


Total


Balance as of May 31, 2020

$
6,673.7
$
5,300.5
$
648.8
$
894.5
$
405.7
$
13,923.2

Divestiture

-
-
-
(1.2)
-
(1.2)
Other activity, primarily
foreign 

currency translation
15.6
-
-
84.9
39.9
140.4

Balance as of May 30, 2021

6,689.3
5,300.5
648.8
978.2
445.6
14,062.4

Acquisition

-
762.3
-
-
-
762.3

Divestitures

-
-
-
(201.8)
-
(201.8)
Reclassified to assets held for sale
(130.0)
-
-
-
-
(130.0)
Other activity, primarily
foreign 

currency translation
(6.4)
-
-
(54.8)
(53.2)
(114.4)

Balance as of May 29, 2022

6,552.9
6,062.8
648.8
721.6
392.4
14,378.5

Acquisition

-
-
156.8
-
-
156.8

Divestitures

(2.0)
-
-
(0.4)
-
(2.4)
Other activity, primarily
foreign 

currency translation
(8.5)
-
-
(12.8)
(0.4)
(21.7)

Balance as of May 28, 2023

$
6,542.4
$
6,062.8
$
805.6
$
708.4
$
392.0
$
14,511.2




The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and
2023 are as follows:



In Millions


Total


Balance as of May 31, 2020

$
7,095.8

Divestiture

(5.3)
Other activity, primarily
amortization and foreign currency translation
60.1

Balance as of May 30, 2021

7,150.6

Acquisition

370.0

Divestitures

(621.8)
Intellectual property intangible asset
210.4
Other activity, primarily
amortization and foreign currency translation
(109.3)

Balance as of May 29, 2022

6,999.9

Acquisition

3.8

Divestiture

(3.6)
Other activity, primarily
amortization and foreign currency translation
(32.5)

Balance as of May 28, 2023

$
6,967.6





Our

annual
goodwill

and

indefinite-lived
intangible
assets
impairment
test
was
performed

on


the

first
day

of


the

second
quarter

of 

fiscal
2023,

and

we
determined
there
was
no
impairment

of

our
intangible
assets

as

their
related
fair
values
were
substantially

in 


excess of the

carrying values,
except for

the 


Uncle Toby's


brand intangible

asset. In addition,

while having
significant coverage

as of 

our fiscal 2023
assessment date, the 

Progresso



and 


EPIC


brand intangible assets had
risk of decreasing coverage.

We

will continue to 
monitor these businesses for potential impairment.


We did not
identify any indicators of impairment for any goodwill or indefinite-lived
intangible assets as of May 28, 2023.



NOTE 7. LEASES 

Our lease portfolio primarily
consists of operating lease
arrangements for certain
warehouse and distribution space,
office space, retail 
shops,
production
facilities,
rail
cars,
production

and

distribution
equipment,
automobiles,

and

office
equipment.

Our

lease
costs 
associated with finance
leases and
sale-leaseback transactions
and our
lease income associated

with lessor and

sublease arrangements 
are not material to our Consolidated Financial Statements. 



 
, 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. 



 
, PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 60: 
60 The Procter & Gamble Company


Long-term debt maturities during the next five fiscal years are as follows:
|    |                             |        |        |        |        |        |
|---:|:----------------------------|:-------|:-------|:-------|:-------|:-------|
|  1 | Fiscal years ending June 30 | 2024   | 2025   | 2026   | 2027   | 2028   |
|  2 | Debt maturities             | $3,951 | $1,954 | $3,364 | $4,368 | $1,380 |

 NOTE 11


ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component:
|    |                                                                       |                       |    |                               |       |                              |         |            |    |          |    |          |
|---:|:----------------------------------------------------------------------|:----------------------|:---|:------------------------------|:------|:-----------------------------|:--------|:-----------|:---|:---------|:---|:---------|
|  1 | Changes in Accumulated Other Comprehensive Income/(Loss) by Component |                       |    |                               |       |                              |         |            |    |          |    |          |
|  2 |                                                                       | Investment Securities |    | Post-retirement Benefit Plans |       | Foreign Currency Translation |         | Total AOCI |    |          |    |          |
|  3 | BALANCE at JUNE 30, 2021                                              | $                     | 15 |                               |       | $                            | (2,963) |            | $  | (10,796) | $  | (13,744) |
|  4 | OCI before reclassifications (1)                                      | 4                     |    |                               | 2,797 |                              |         | (1,451)    |    | 1,350    |    |          |
|  5 | Amounts reclassified to the Consolidated Statement of Earnings (2)    | 1                     |    |                               | 195   |                              |         | 1          |    | 197      |    |          |
|  6 | Net current period OCI                                                | 5                     |    |                               | 2,992 |                              |         | (1,450)    |    | 1,547    |    |          |
|  7 | Less: OCI attributable to non-controlling interests                   | -                     |    |                               | 2     |                              |         | (10)       |    | (8)      |    |          |
|  8 | BALANCE at JUNE 30, 2022                                              | 20                    |    |                               | 27    |                              |         | (12,236)   |    | (12,189) |    |          |
|  9 | OCI before reclassifications (3)                                      | (7)                   |    |                               | 21    |                              |         | (71)       |    | (57)     |    |          |
| 10 | Amounts reclassified to the Consolidated Statement of Earnings (4)    | -                     |    |                               | 19    |                              |         | -          |    | 19       |    |          |
| 11 | Net current period OCI                                                | (7)                   |    |                               | 40    |                              |         | (71)       |    | (38)     |    |          |
| 12 | Less: OCI attributable to non-controlling interests                   | -                     |    |                               | -     |                              |         | (7)        |    | (7)      |    |          |
| 13 | BALANCE at JUNE 30, 2023                                              | $                     | 13 |                               |       | $                            | 67      |            | $  | (12,300) | $  | (12,220) |
(1)Net of tax (benefit)/expense of $1, $953 and $515 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. 
(2)Net of tax (benefit)/expense of $0, $69 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022.
(3)Net of tax (benefit)/expense of $(2), $1 and $(197) for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. 
(4)Net of tax (benefit)/expense of $0, $8 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023.
The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings:
•Investment securities: amounts reclassified from AOCI into Other non-operating income, net.
•Postretirement benefit plans: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs (see Note 8).

NOTE 12


LEASES

The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components.
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 61: 
The Procter & Gamble Company 61


The components of the Company's total operating lease cost for the fiscal years ended June 30, 2023, 2022 and 2021, were as follows:
|    |                            |      |     |      |    |      |     |    |    |     |
|---:|:---------------------------|:-----|:----|:-----|:---|:-----|:----|:---|:---|:----|
|  1 | Fiscal years ended June 30 | 2023 |     | 2022 |    | 2021 |     |    |    |     |
|  2 | Operating lease cost       | $    | 229 |      |    | $    | 220 |    | $  | 245 |
|  3 | Variable lease cost (1)    | 79   |     |      | 89 |      |     | 75 |    |     |
|  4 | Total lease cost           | $    | 308 |      |    | $    | 309 |    | $  | 320 |
(1)Includes primarily costs for utilities, common area maintenance, property taxes and other operating costs associated with operating leases that are not included in the lease liability and are recognized in the period in which they are incurred.
Supplemental balance sheet and other information related to leases is as follows:
|    |                                                             |           |     |           |     |     |
|---:|:------------------------------------------------------------|:----------|:----|:----------|:----|:----|
|  1 | As of June 30                                               | 2023      |     | 2022      |     |     |
|  2 | Operating leases:                                           |           |     |           |     |     |
|  3 | Right-of-use assets (Other noncurrent assets)               | $         | 781 |           | $   | 760 |
|  5 | Current lease liabilities (Accrued and other liabilities)   | 222       |     | 205       |     |     |
|  6 | Noncurrent lease liabilities (Other noncurrent liabilities) | 595       |     | 595       |     |     |
|  7 | Total operating lease liabilities                           | $         | 817 |           | $   | 800 |
|  9 | Weighted average remaining lease term:                      |           |     |           |     |     |
| 10 | Operating leases                                            | 6.2 years |     | 6.4 years |     |     |
| 12 | Weighted average discount rate:                             |           |     |           |     |     |
| 13 | Operating leases                                            | 3.5       | %   |           | 3.2 | %   |
At June 30, 2023, future payments of operating lease liabilities were as follows:
|    |                                    |                  |     |
|---:|:-----------------------------------|:-----------------|:----|
|  1 |                                    | Operating Leases |     |
|  2 |                                    | June 30, 2023    |     |
|  3 | 1 year                             | $                | 222 |
|  4 | 2 years                            | 185              |     |
|  5 | 3 years                            | 137              |     |
|  6 | 4 years                            | 100              |     |
|  7 | 5 years                            | 71               |     |
|  8 | Over 5 years                       | 196              |     |
|  9 | Total lease payments               | 911              |     |
| 10 | Less: Interest                     | (94)             |     |
| 11 | Present value of lease liabilities | $                | 817 |
Total cash paid for amounts included in the measurement of lease liabilities was $233 and $228 for the fiscal years ended June 30, 2023 and 2022, respectively. 
The right-of-use assets obtained in exchange for lease liabilities were $213 and $217 for the fiscal years ended June 30, 2023 and 2022, respectively.

NOTE 13


COMMITMENTS AND CONTINGENCIES


Guarantees

In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. We have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows.
Amounts in millions of dollars except per share amounts or as otherwise specified.






Question: Compare the impact of leasing costs on the overall profitability of General Mills and The Procter & Gamble Company for the fiscal year 2023.
Answer: General Mills' total leasing costs for fiscal year 2023 amounted to $163.7 million, including operating lease costs, variable lease costs, and short-term lease costs. The company's total non-cancelable future lease obligations are $402.7 million, with a weighted average remaining lease term of 5.2 years and a weighted average discount rate of 4.4%.
The Procter & Gamble Company's total leasing costs for fiscal year 2023 amounted to $308 million, including operating lease costs and variable lease costs. P&G's total operating lease liabilities are $817 million, with a weighted average remaining lease term of 6.2 years and a weighted average discount rate of 3.5%.
Conclusion - P&G's higher leasing costs reflect its larger scale of operations and more extensive use of leased assets. However, P&G's longer average remaining lease term and lower discount rate indicate more favorable lease terms, which can help mitigate the impact on profitability.