UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 5, 2013
Kellogg Company
(Exact name of Registrant as specified in its charter)
Delaware | 1-4171 | 38-0710690 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
One Kellogg Square
Battle Creek, Michigan 49016-3599
(Address of Principal executive offices, including Zip Code)
(269) 961-2000
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. Regulation FD Disclosure
In the fourth quarter of 2012, Kellogg Company (the Company) changed its policy for recognizing expense for its pension and post-retirement benefit plans. Historically, the Companys accounting has resulted in recognition of changes in fair value of assets over a five-year period, and amortization of deferred actuarial gains and losses over a number of years. Under the new policy, gains and losses from these plans will be recognized in an annual mark-to-market adjustment that is recorded in the fourth quarter of each year.
In addition, concurrent with this change, the Company has elected to modify its process of allocating pension and post-retirement benefit plan costs to reportable segments. Historically, the Company has allocated all costs for these plans to the reportable segments. Beginning in the fourth quarter of 2012, the Company included only the service cost of these plans within the financial results of the reportable segments. All other costs related to these plans, such as interest cost, expected return on plan assets, and the annual mark-to-market adjustment will be reported in the Companys Corporate segment.
These changes have been applied retrospectively. Financial results from prior periods have been recast to include the impact as if the changes had been in place during those periods. For information about the Companys 2012 financial results, refer to the Companys press release issued on the date hereof.
Select recast measures of financial performance for 2012 and 2011, prepared in accordance with Generally Accepted Accounting Principles, have been included in Exhibit 99.1 to this Current Report on Form 8-k to provide year-over-year comparability for future periods.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit 99.1 | Selected recast financial performance measures. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KELLOGG COMPANY | ||||||
/s/ Ronald L. Dissinger | ||||||
Date: February 5, 2013 | Name: | Ronald L. Dissinger | ||||
Title: | Senior Vice President and Chief Financial Officer |
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EXHIBIT INDEX
Exhibit No. |
Description | |
Exhibit 99.1 | Selected recast financial performance measures. |
Exhibit 99.1
Quarter ended | Year-to-date period ended | |||||||||||||||||||||||||||
March 31, 2012 |
June 30, 2012 |
September 29, 2012 |
December 29, 2012* |
June 30, 2012 |
September 29, 2012 |
December 29, 2012* |
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EPS as originally reported |
$ | 1.00 | $ | 0.84 | $ | 0.82 | $ | (0.09 | ) | $ | 1.84 | $ | 2.66 | $ | 2.67 | |||||||||||||
Mark-to-market(a) |
(0.10 | ) | | | | (0.10 | ) | (0.10 | ) | | ||||||||||||||||||
Impact of Changes to Pension Accounting(b) |
0.08 | 0.06 | 0.07 | | 0.14 | 0.21 | | |||||||||||||||||||||
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Recast EPS |
$ | 0.98 | $ | 0.90 | $ | 0.89 | $ | (0.09 | ) | $ | 1.88 | $ | 2.77 | $ | 2.67 | |||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||||||||||||||||||
April 2, 2011 |
July 2, 2011 |
October 1, 2011 |
December 31, 2011 |
July 2, 2011 |
October 1, 2011 |
December 31, 2011 |
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EPS as originally reported |
$ | 1.00 | $ | 0.94 | $ | 0.80 | $ | 0.64 | $ | 1.93 | $ | 2.73 | $ | 3.38 | ||||||||||||||
Mark-to-market(a) |
0.01 | (0.01 | ) | (0.02 | ) | (1.25 | ) | | (0.01 | ) | (1.24 | ) | ||||||||||||||||
Impact of Changes to Pension Accounting(b) |
0.07 | 0.06 | 0.05 | 0.07 | 0.14 | 0.18 | 0.24 | |||||||||||||||||||||
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Recast EPS |
$ | 1.08 | $ | 0.99 | $ | 0.83 | $ | (0.54 | ) | $ | 2.07 | $ | 2.90 | $ | 2.38 |
* | Fourth quarter and year-to-date results are as originally reported. |
(a) | Actuarial gains/losses are recognized in the year they occur. In 2012, asset returns exceeded expectations but discount rates fell almost 100 basis points resulting in a net loss. The loss in 2011 resulted from actual asset returns being less than expected and a decline in discount rates. |
(b) | Primarily the elimination of amortization of actuarial gains and losses. |
2012 (millions) | Quarter ended | Year-to-date period ended | ||||||||||||||||||||||||||
March 31, 2012 |
June 30, 2012 |
September 29, 2012 |
December 29, 2012* |
June 30, 2012 |
September 29, 2012 |
December 29, 2012* |
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Operating Profit (Recast*) |
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U.S. Morning Foods & Kashi |
$ | 157 | $ | 181 | $ | 135 | $ | 122 | $ | 338 | $ | 473 | $ | 595 | ||||||||||||||
U.S. Snacks |
119 | 118 | 116 | $ | 116 | 237 | 353 | $ | 469 | |||||||||||||||||||
U.S. Specialty |
71 | 56 | 62 | $ | 52 | 127 | 189 | $ | 241 | |||||||||||||||||||
North America Other |
70 | 70 | 67 | $ | 58 | 140 | 207 | $ | 265 | |||||||||||||||||||
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North America Total |
417 | 425 | 380 | $ | 348 | 842 | 1,222 | $ | 1,570 | |||||||||||||||||||
Europe |
70 | 64 | 76 | $ | 51 | 134 | 210 | $ | 261 | |||||||||||||||||||
Latin America |
51 | 48 | 36 | $ | 32 | 99 | 135 | $ | 167 | |||||||||||||||||||
Asia Pacific |
33 | 17 | 29 | $ | 6 | 50 | 79 | $ | 85 | |||||||||||||||||||
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Total Reportable Segments |
571 | 554 | 521 | $ | 437 | 1,125 | 1,646 | $ | 2,083 | |||||||||||||||||||
Corporate |
(44 | ) | (35 | ) | (8 | ) | $ | (434 | ) | (79 | ) | (87 | ) | $ | (521 | ) | ||||||||||||
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Consolidated |
$ | 527 | $ | 519 | $ | 513 | $ | 3 | $ | 1,046 | $ | 1,559 | $ | 1,562 | ||||||||||||||
Operating Profit (As originally reported) |
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U.S. Morning Foods & Kashi |
$ | 159 | $ | 183 | $ | 137 | $ | 342 | $ | 479 | ||||||||||||||||||
U.S. Snacks |
118 | 117 | 116 | 235 | 351 | |||||||||||||||||||||||
U.S. Specialty |
71 | 55 | 62 | 126 | 188 | |||||||||||||||||||||||
North America Other |
70 | 70 | 66 | 140 | 206 | |||||||||||||||||||||||
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North America Total |
418 | 425 | 381 | 843 | 1,224 | |||||||||||||||||||||||
Europe |
78 | 72 | 84 | 150 | 234 | |||||||||||||||||||||||
Latin America |
51 | 48 | 35 | 99 | 134 | |||||||||||||||||||||||
Asia Pacific |
34 | 16 | 29 | 50 | 79 | |||||||||||||||||||||||
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Total Reportable Segments |
581 | 561 | 529 | 1,142 | 1,671 | |||||||||||||||||||||||
Corporate |
(46 | ) | (76 | ) | (50 | ) | (122 | ) | (172 | ) | ||||||||||||||||||
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Consolidated |
$ | 535 | $ | 485 | $ | 479 | $ | 1,020 | $ | 1,499 |
* | Fourth quarter and year-to-date results are as originally reported. |
2011 (millions) | Quarter ended | Year-to-date period ended | ||||||||||||||||||||||||||
April 2, 2011 |
July 2, 2011 |
October 1, 2011 |
December 31, 2011 |
July 2, 2011 |
October 1, 2011 |
December 31, 2011 |
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Operating Profit (Recast) |
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U.S. Morning Foods & Kashi |
$ | 177 | $ | 173 | $ | 130 | $ | 131 | $ | 350 | $ | 480 | $ | 611 | ||||||||||||||
U.S. Snacks |
123 | 109 | 93 | 112 | 232 | 325 | 437 | |||||||||||||||||||||
U.S. Specialty |
65 | 56 | 64 | 46 | 121 | 185 | 231 | |||||||||||||||||||||
North America Other |
69 | 62 | 64 | 55 | 131 | 195 | 250 | |||||||||||||||||||||
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North America Total |
434 | 400 | 351 | 344 | 834 | 1,185 | 1,529 | |||||||||||||||||||||
Europe |
92 | 93 | 75 | 42 | 185 | 260 | 302 | |||||||||||||||||||||
Latin America |
48 | 61 | 43 | 24 | 109 | 152 | 176 | |||||||||||||||||||||
Asia Pacific |
31 | 24 | 23 | 26 | 55 | 78 | 104 | |||||||||||||||||||||
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Total Reportable Segments |
605 | 578 | 492 | 436 | 1,183 | 1,675 | 2,111 | |||||||||||||||||||||
Corporate |
10 | (6 | ) | (14 | ) | (674 | ) | 4 | (10 | ) | (684 | ) | ||||||||||||||||
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Consolidated |
$ | 615 | $ | 572 | $ | 478 | $ | (238 | ) | $ | 1,187 | $ | 1,665 | $ | 1,427 | |||||||||||||
Operating Profit (As originally reported) |
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U.S. Morning Foods & Kashi |
$ | 181 | $ | 176 | $ | 134 | $ | 134 | $ | 357 | $ | 491 | $ | 625 | ||||||||||||||
U.S. Snacks |
124 | 111 | 94 | 114 | 235 | 329 | 443 | |||||||||||||||||||||
U.S. Specialty |
65 | 56 | 64 | 47 | 121 | 185 | 232 | |||||||||||||||||||||
North America Other |
70 | 63 | 65 | 55 | 133 | 198 | 253 | |||||||||||||||||||||
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North America Total |
440 | 406 | 357 | 350 | 846 | 1,203 | 1,553 | |||||||||||||||||||||
Europe |
101 | 102 | 84 | 51 | 203 | 287 | 338 | |||||||||||||||||||||
Latin America |
48 | 61 | 43 | 24 | 109 | 152 | 176 | |||||||||||||||||||||
Asia Pacific |
31 | 25 | 23 | 27 | 56 | 79 | 106 | |||||||||||||||||||||
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Total Reportable Segments |
620 | 594 | 507 | 452 | 1,214 | 1,721 | 2,173 | |||||||||||||||||||||
Corporate |
(48 | ) | (51 | ) | (43 | ) | (55 | ) | (99 | ) | (142 | ) | (197 | ) | ||||||||||||||
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Consolidated |
$ | 572 | $ | 543 | $ | 464 | $ | 397 | $ | 1,115 | $ | 1,579 | $ | 1,976 |