Equity

12 Months Ended

Dec. 28, 2013

Equity [Abstract]

Equity [Text Block]

NOTE4

EQUITY

Earnings per share

Basic earnings per share is determined by dividing net income attributable to Kellogg Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, and to a lesser extent, certain contingently issuable performance shares. Basic earnings per share is reconciled to diluted earnings per share in the following table:

			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2013
	Basic	$	1,807	363	$	4.98
	Dilutive potential common shares			2		(0.04)
	Diluted	$	1,807	365	$	4.94
2012
	Basic	$	961	358	$	2.68
	Dilutive potential common shares			2		(0.01)
	Diluted	$	961	360	$	2.67
2011
	Basic	$	866	362	$	2.39
	Dilutive potential common shares			2		(0.01)
	Diluted	$	866	364	$	2.38

The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (in millions): 2013-5.0; 2012-9.9; 2011-4.2.

Stock transactions

The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 7. The number of shares issued during the periods presented was (in millions): 2013–10; 2012–5; 2011–7. The Company issued shares totaling less than one million in each of the years presented under Kellogg DirectTM, a direct stock purchase and dividend reinvestment plan for U.S. shareholders.

In December 2012, the Company's board of directors approved a share repurchase program authorizing the repurchase of up to $300 million during 2013. In April 2013, the Company's board of directors approved an authorization to repurchase up to $1 billion in shares through April 2014. In February 2014, the Company's board of directors approved a new authorization to repurchase up to $1.5 billion in shares through December 2015. This authorization supersedes the April 2013 authorization and is intended to allow the Company to repurchase shares for general corporate purposes and to offset issuances for employee benefit programs. In May 2013, the Company entered into an Accelerated Share Repurchase (ASR) Agreement with a financial institution counterparty and paid $355 million for the repurchase of shares during the term of the Agreement which extended through August 2013. During the second quarter of 2013, 4.9 million shares were initially delivered to the Company and accounted for as a reduction to Kellogg Company equity. The transaction was completed during the third quarter, at which time the Company received 0.6 million additional shares. The total number of shares delivered upon settlement of the ASR was based upon the volume weighted average price of the Company's stock over the term of the agreement.

During 2013, the Company repurchased 9million shares of common stock for a total of $544million. During 2012, the Company repurchased 1 million shares of common stock for a total of $63 million. During 2011, the Company repurchased 15 million shares of common stock at a total cost of $793 million.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income for all years presented consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience losses and prior service cost related to employee benefit plans.

Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the year ended December 28, 2013 consisted of the following:
(millions)
Details about AOCI		Amount reclassified	Line item impacted
components		from AOCI	within Income Statement
Gains and losses on cash flow hedges:
Foreign currency exchange contracts	$	(10)	COGS
Foreign currency exchange contracts		(2)	SGA
Interest rate contracts		(4)	Interest expense
Commodity contracts		10	COGS
	$	(6)	Total before tax
		-	Tax (expense) benefit
	$	(6)	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	5	See Notes 8 and 9 for further details
Prior service cost		13	See Notes 8 and 9 for further details
	$	18	Total before tax
		(6)	Tax (expense) benefit
	$	12	Net of tax
Total reclassifications	$	6	Net of tax

Accumulated other comprehensive income (loss) as of December 28, 2013 and December 29, 2012 consisted of the following:
			December 28,		December 29,
(millions)			2013		2012
Foreign currency translation adjustments		$	(856)	$	(832)
Cash flow hedges — unrealized net gain (loss)			1		(3)
Postretirement and postemployment benefits:
	Net experience loss		(15)		(29)
	Prior service cost		(66)		(82)
Total accumulated other comprehensive income (loss)		$	(936)	$	(946)