Reportable Segments

9 Months Ended

Sep. 29, 2012

Reportable Segments [Abstract]

Reportable Segments [Text Block]

Note 11Reportable segments

Kellogg Company is the world's leading producer of cereal, second largest producer of cookies and crackers, and the world's second largest savory snacks company. In addition Kellogg is a leading producer of frozen foods. Additional product offerings include toaster pastries, cereal bars, fruit-flavored snacks and veggie foods. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States and United Kingdom.

The Company currently manages its operations through nine operating segments that are based on product category or geographic location. These operating segments are evaluated for similarity with regards to economic characteristics, products, production processes, types or classes of customers, distribution methods and regulatory environments to determine if they can be aggregated into reportable segments.  Beginning in the fourth quarter of 2011, the Company has the following reportable segments: U.S. Morning Foods and Kashi; U.S. Snacks; U.S. Specialty; North America Other; Europe; Latin America; and Asia Pacific.  In addition, subsequent to the filing of the Company's Annual Report on Form 10-K, the Company reclassified certain customers between reportable segments within North America. Segment results of prior periods were recast to conform to the current presentation.  The reportable segments are discussed in greater detail below.

U.S. Morning Foods and Kashi aggregates the U.S. Morning Foods and U.S. Kashi operating segments.  The U.S. Morning Foods operating segment includes cereal, toaster pastries, and health and wellness products generally marketed under the Kellogg's name.  The U.S. Kashi operating segment represents Kashi-branded cereal, cereal bars, crackers, cookies and Stretch Island fruit snacks.

U.S. Snacks represents the U.S. snacks business which includes products such as cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks.

U.S. Specialty primarily represents the food service, convenience and Girl Scouts businesses. The food service business is mostly non-commercial, servicing institutions such as schools and hospitals.

North America Other represents the U.S. Frozen and Canada operating segments.  As these operating segments are not considered economically similar enough to aggregate with other operating segments and are immaterial for separate disclosure, they have been grouped together as a single reportable segment.

The three remaining reportable segments are based on geographic location – Europe which consists principally of European countries;Latin America which is comprised of Central and South America and includes Mexico; and Asia Pacific which is comprised of South Africa, Australia and other Asian and Pacific markets.

Refer to Note 2 for discussion regarding changes in intangible assets by reportable segment associated with the Pringles acquisition. No other changes to total assets by reportable segment were considered significant.

The measurement of reportable segment results is based on segment operating profit which is generally consistent with the presentation of operating profit in the Consolidated Statement of Income. Intercompany transactions between operating segments were insignificant in all periods presented.

			Quarter ended				Year-to-date period ended
			September 29,		October 1,		September 29,		October 1,
(millions)			2012		2011		2012		2011
Net sales
	U.S. Morning Foods & Kashi	$	946	$	897	$	2,826	$	2,782
	U.S. Snacks		865		727		2,410		2,181
	U.S. Specialty		264		234		864		789
	North America Other		388		359		1,125		1,060
	Europe		685		585		1,836		1,840
	Latin America		292		274		836		816
	Asia Pacific		280		236		737		715
	Consolidated	$	3,720	$	3,312	$	10,634	$	10,183
Operating profit
	U.S. Morning Foods & Kashi	$	137	$	134	$	479	$	491
	U.S. Snacks		116		94		351		329
	U.S. Specialty		62		64		188		185
	North America Other		66		65		206		198
	Europe		84		84		234		287
	Latin America		35		43		134		152
	Asia Pacific		29		23		79		79
	Total Reportable Segments		529		507		1,671		1,721
	Corporate		(50)		(43)		(172)		(142)
	Consolidated	$	479	$	464	$	1,499	$	1,579