Reportable Segments

12 Months Ended

Dec. 28, 2013

Reportable Segments [Abstract]

Reportable Segments [Text Block]

NOTE16

REPORTABLE SEGMENTS

Kellogg Company is the world's leading producer of cereal, second largest producer of cookies and crackers and a leading producer of savory snacks and 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 has the following reportable segments: U.S. Morning Foods; U.S. Snacks; U.S. Specialty; North America Other; Europe; Latin America; and Asia Pacific.  The Company manages its operations through eight 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 first quarter of 2013, the Kashi operating segment, which was formerly aggregated with the U.S. Morning Foods operating segment and reported as U.S. Morning Foods and Kashi, was revised due to a reorganization of the business. Kashi operating segment results of prior years were recast between U.S. Morning Foods and U.S. Snacks to conform with current presentation. The reportable segments are discussed in greater detail below.

The U.S. Morning Foods operating segment includes cereal, toaster pastries, and health and wellness businessbars, and beverages. 

U.S. Snacks includes cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks.

U.S. Specialty includesthe food service and Girl Scouts business. The food service business is mostly non-commercial, serving institutions such as schools and hospitals.

North America Other includes 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; andAsia Pacific which is comprised of South Africa, Australia and other Asian and Pacific markets.

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.

(millions)			2013		2012		2011
Net sales
	U.S. Morning Foods	$	3,465	$	3,533	$	3,450
	U.S. Snacks		3,534		3,400		3,044
	U.S. Specialty		1,202		1,121		1,008
	North America Other		1,515		1,485		1,371
	Europe		2,860		2,527		2,334
	Latin America		1,195		1,121		1,049
	Asia Pacific		1,021		1,010		942
	Consolidated	$	14,792	$	14,197	$	13,198
Operating profit
	U.S. Morning Foods	$	485	$	588	$	609
	U.S. Snacks		447		476		439
	U.S. Specialty		265		241		231
	North America Other		275		265		250
	Europe		256		261		302
	Latin America		157		167		176
	Asia Pacific		60		85		104
	Total Reportable Segments		1,945		2,083		2,111
	Corporate		892		(521)		(684)
	Consolidated	$	2,837	$	1,562	$	1,427
Depreciation and amortization (a)
	U.S. Morning Foods	$	181	$	132	$	130
	U.S. Snacks		144		123		92
	U.S. Specialty		8		5		5
	North America Other		30		34		30
	Europe		84		66		57
	Latin America		29		26		20
	Asia Pacific		40		55		27
	Total Reportable Segments		516		441		361
	Corporate		16		7		8
	Consolidated	$	532	$	448	$	369
(a)	Includes asset impairment charges as discussed in Note 12.

Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by Management for the Company's internationally-based reportable segments as shown below.

(millions)			2013		2012		2011
Interest expense
	North America Other	$	6	$	4	$	0
	Europe		6		4		4
	Latin America		1		4		6
	Asia Pacific		3		4		2
	Corporate		219		245		221
	Consolidated	$	235	$	261	$	233
Income taxes
	Europe	$	4	$	(21)	$	31
	Latin America		35		36		49
	Asia Pacific		6		9		21
	Corporate & North America		747		339		219
	Consolidated	$	792	$	363	$	320

Management reviews balance sheet information, including total assets, based on geography. For all North American-based operating segments, balance sheet information is reviewed by Management in total and not on an individual operating segment basis.

(millions)			2013		2012		2011
Total assets
	North America	$	10,643	$	10,602	$	9,128
	Europe		3,007		3,014		1,584
	Latin America		1,052		861		798
	Asia Pacific		1,049		1,107		529
	Corporate		2,583		3,384		2,317
	Elimination entries		(2,860)		(3,799)		(2,413)
	Consolidated	$	15,474	$	15,169	$	11,943
Additions to long-lived assets
	North America	$	296	$	549	$	421
	Europe		182		209		61
	Latin America		70		40		53
	Asia Pacific		85		79		54
	Corporate		4		14		5
	Consolidated	$	637	$	891	$	594

The Company's largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 21% of consolidated net sales during 2013,20% in 2012, and20% in 2011, comprised principally of sales within the United States.

Supplemental geographic information is provided below for net sales to external customers and long-lived assets:

(millions)			2013		2012		2011
Net sales
	United States	$	9,060	$	8,875	$	8,239
	All other countries		5,732		5,322		4,959
	Consolidated	$	14,792	$	14,197	$	13,198
Long-lived assets
	United States	$	2,343	$	2,427	$	2,151
	All other countries		1,513		1,355		1,130
	Consolidated	$	3,856	$	3,782	$	3,281

Supplemental product information is provided below for net sales to external customers:

(millions)			2013		2012		2011
	Retail channel cereal	$	6,451	$	6,652	$	6,730
	Retail channel snacks		6,625		5,891		4,949
	Frozen and specialty channels		1,716		1,654		1,519
Consolidated		$	14,792	$	14,197	$	13,198