Delaware | 1-4171 | 38-0710690 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
KELLOGG COMPANY | ||
Date: August 4, 2016 | /s/ Ronald L. Dissinger | |
Name: Ronald L. Dissinger | ||
Title: Senior Vice President and Chief Financial Officer |
99.1 | Press Release dated August 4, 2016 |
Kellogg Company | |
Financial News Release | |
Analyst Contact: | |
John Renwick, CFA (269) 961-9050 | |
Media Contact: | |
Kris Charles, (269) 961-3799 | |
Financial Summary: | Quarter ended | Year-to-date period ended | ||||||||||||||||||||
(millions, except per share data) | July 2, 2016 | July 4, 2015 | % Change | July 2, 2016 | July 4, 2015 | % Change | ||||||||||||||||
Reported Net Sales | $ | 3,268 | $ | 3,498 | (6.6 | )% | $ | 6,663 | $ | 7,054 | (5.5 | )% | ||||||||||
Comparable Net Sales * | $ | 3,263 | $ | 3,490 | (6.5 | )% | $ | 6,643 | $ | 7,051 | (5.8 | )% | ||||||||||
Currency-Neutral Comparable Net Sales * | $ | 3,791 | 8.6 | % | $ | 7,587 | 7.6 | % | ||||||||||||||
Reported Operating Profit | $ | 449 | $ | 412 | 9.1 | % | $ | 887 | $ | 796 | 11.5 | % | ||||||||||
Comparable Operating Profit * | $ | 507 | $ | 506 | 0.3 | % | $ | 1,027 | $ | 1,033 | (0.5 | )% | ||||||||||
Currency-Neutral Comparable Operating Profit * | $ | 559 | 10.6 | % | $ | 1,270 | 23.0 | % | ||||||||||||||
Reported Net Income (Loss) Attributable to Kellogg Company | $ | 280 | $ | 223 | 26.0 | % | $ | 455 | $ | 450 | 1.3 | % | ||||||||||
Comparable Net Income (Loss) Attributable to Kellogg Company * | $ | 321 | $ | 327 | (1.6 | )% | $ | 662 | $ | 678 | (2.2 | )% | ||||||||||
Currency-Neutral Comparable Net Income (Loss) Attributable to Kellogg Company * | $ | 352 | 7.9 | % | $ | 825 | 21.7 | % | ||||||||||||||
Reported Diluted Earnings Per Share | $ | 0.79 | $ | 0.63 | 25.4 | % | $ | 1.29 | $ | 1.26 | 2.4 | % | ||||||||||
Comparable Diluted Earnings Per Share * | $ | 0.91 | $ | 0.92 | (1.1 | )% | $ | 1.87 | $ | 1.90 | (1.6 | )% | ||||||||||
Currency-Neutral Comparable Diluted Earnings Per Share * | $ | 1.00 | 8.7 | % | $ | 2.33 | 22.6 | % |
• | Kellogg’s Q2 2016 GAAP (or "Reported") earnings per share were up significantly from the prior-year quarter, driven mainly by lower one-time costs and higher profit margins. Non-GAAP, comparable earnings per share were off slightly from the year-earlier quarter, due to the negative impact of currency translation, mostly related to our Venezuelan business. Non-GAAP, currency-neutral comparable earnings increased strongly year-on-year, and ahead of the Company’s expectations, owing primarily to better profit-margin performance in North America. |
• | Second-quarter 2016 reported net sales decreased, primarily due to the effect of currency translation resulting from the remeasurement of the Venezuelan business in mid-2015. Currency-neutral comparable net sales increased strongly in the quarter, as a result of inflation-related sales growth in Venezuela; currency-neutral comparable net sales excluding the impact of Venezuela decreased modestly. |
• | Quarterly reported operating profit increased due to favorable one-time costs, as well as to strong performance in inflationary Venezuela and cost savings in North America. Currency-neutral comparable operating profit increased strongly, with half of the gain attributable to the Venezuela profit performance, and the rest coming primarily from the margin expansion in North America. |
• | Currency-neutral comparable operating profit and earnings were ahead of the Company's expectations in the second quarter. |
Reconciliation of Non-GAAP Amounts - As Reported to Currency-Neutral Comparable Earnings Per Share | |||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||
July 2, 2016 | July 4, 2015 | July 2, 2016 | July 4, 2015 | ||||||||||
Reported EPS | $ | 0.79 | $ | 0.63 | $ | 1.29 | $ | 1.26 | |||||
Mark-to-Market | 0.05 | 0.10 | (0.01 | ) | (0.09 | ) | |||||||
Project K and Cost Reduction Activities | (0.20 | ) | (0.25 | ) | (0.35 | ) | (0.44 | ) | |||||
Other Costs Impacting Comparability | — | 0.21 | (0.43 | ) | 0.13 | ||||||||
Acquisitions/Divestitures and Integration | — | (0.02 | ) | — | (0.04 | ) | |||||||
Remeasurement of Venezuelan Business | (0.01 | ) | (0.43 | ) | (0.03 | ) | (0.43 | ) | |||||
Income Tax Benefit Applicable to Adjustments, Net* | 0.04 | 0.10 | 0.24 | 0.23 | |||||||||
Comparable EPS | 0.91 | 0.92 | 1.87 | 1.90 | |||||||||
Foreign Exchange | (0.09 | ) | (0.46 | ) | |||||||||
Currency-Neutral Comparable EPS | $ | 1.00 | $ | 2.33 |
• | The company continued to make progress on its priorities, including stabilizing cereal in the U.S. and Australia, good emerging-markets growth, improved profit margins, and Pringles growth worldwide. |
• | Kellogg North America’s net sales declined on a reported and currency-neutral comparable basis, but generated strong cost savings under the Project K and Zero-Based Budgeting initiatives. Reported operating profit in North America decreased, due to one-time costs and to adverse currency translation in Canada. Currency-neutral comparable operating profit increased, primarily due to cost-savings from the Project K and Zero-Based Budgeting initiatives. |
• | The U.S. Morning Foods segment posted a net sales decline on both a reported and currency-neutral comparable basis, but its six core cereal brands held all-channel share and the segment's profit margins improved strongly. |
• | The U.S. Snacks segment posted a net sales decline on both a reported and currency-neutral comparable basis, but core brands like Cheez-It, Pringles, and Rice Krispies Treats continued to post consumption growth. |
• | The U.S. Specialty Channels segment posted a slight increase in reported and currency-neutral comparable net sales in the quarter, with growth in key brands and channels, and increased profit margins. |
• | The North America Other segment, which is composed of the U.S. Frozen Foods, Kashi, and Canadian businesses, posted a decrease in reported and currency-neutral comparable net sales, amidst price elasticity in Canada, and portfolio rationalization and food and packaging transitions in Frozen Foods and Kashi. |
• | Kellogg Europe posted a decrease in reported net sales in the quarter, driven mainly by currency translation; currency-neutral comparable net sales were flat year-over-year, as broad-based growth in Pringles and wholesome snacks were offset by softness in U.K. cereal. |
• | In Latin America, reported net sales decreased due to the translation effect of a sharply devalued Venezuelan currency; currency-neutral comparable net sales increased significantly because of inflationary Venezuela; excluding Venezuela, currency-neutral comparable net sales declined slightly, amidst difficult economic conditions. |
• | Reported net sales in Asia Pacific decreased because of adverse currency translation; currency-neutral comparable net sales increased on good growth across the region for Pringles, and continued improvement in Australia, where the company gained share in cereal. While not reported in our sales results, the joint ventures in China and West Africa continued to perform well. |
• | The Company is raising its full-year guidance for earnings per share on a currency-neutral comparable basis, to $4.11-$4.18, from previous guidance of $4.00-$4.07. |
• | The increase is driven by higher currency-neutral comparable operating profit, which is now expected to increase by 15-17%, from our previous estimate of 11-13%. |
• | This increased guidance is based on two factors: The better-than-expected first-half profit performance in inflationary Venezuela, and an increased forecast for operating profit margin for the rest of the business. |
• | The company believes its currency-neutral comparable operating profit growth excluding Venezuela will come in at the high end of the 4-6% growth range previously communicated. The company now expects higher savings from Zero-Based Budgeting in North America, along with the roll-out of a similar program in its international regions. |
• | These savings are expected to more than offset the impact of a trimmed net sales outlook excluding Venezuela, now expected to come in at the low end of the 0-2% range previously communicated. |
• | Because of further weakening in currency exchange rates for Venezuela and for other currencies, particularly in the aftermath of Britain's vote to exit from the European Union, currency translation is expected to have a more negative impact than previously estimated. |
• | The company expects full-year cash flow from operating activities to be approximately $1.7 billion. The company reaffirmed that it expects full-year cash flow to be approximately $1.1 billion, including capital expenditure. Capital expenditure for the year is still expected to be between 4% and 5% of sales, which translates approximately into $525-$625 million; this includes the impact of the cash required by Project K and an increase in capital spending equal to approximately one percent of sales to support the growth of the Pringles business. |
• | The company also announced that it has plans to accelerate and increase the previously announced goals for expanding its currency-neutral comparable operating profit margin. |
• | It now believes it will increase this margin by approximately 350 basis points from 2015 levels, and that it will realize the increase through 2018, an acceleration of two years from its previous guidance. This acceleration comes from a combination of expanding Zero-Based Budgeting across North America and International segments, pursuing a more disciplined approach to revenue growth management, and other potential initiatives. |
• | These actions are expected to drive accelerated currency-neutral comparable operating profit and earnings growth in 2017 and 2018, even as they contribute to holding net sales flat during that time period. |
• | Comparable net sales: We adjust the GAAP financial measures to exclude the pre-tax effect of acquisitions, divestitures, and shipping day differences. We excluded the items which we believe may obscure trends in the company's underlying net sales performance. By providing this non-GAAP net sales measure, management intends to provide investors with a meaningful, consistent comparison of net sales performance for the Company and each of our reportable segments for the periods presented. Management uses this non-GAAP measure to evaluate the effectiveness of initiatives behind net sales growth, pricing realization, and the impact of mix on our business results. This non-GAAP measure is also used to make decisions regarding the future direction of our business, and for resource allocation decisions. Currency-neutral comparable net sales represents comparable net sales excluding the impact of foreign currency. |
• | Comparable gross profit, comparable gross margin, comparable SGA, comparable SGA%, comparable operating profit, comparable operating profit margin, comparable net income attributable to Kellogg Company, and comparable diluted EPS: We adjust the GAAP financial measures to exclude the effect of Project K and cost reduction activities, acquisitions, divestitures, integration costs, mark-to-market adjustments for pension plans, commodities and certain foreign currency contracts, costs associated with the VIE deconsolidation and costs associated with the Venezuela remeasurement. We excluded the items which we believe may obscure trends in the company's underlying profitability. By providing these non-GAAP profitability measures, management intends to provide investors with a meaningful, consistent comparison of the company's profitability measures for the periods presented. Management uses these non-GAAP financial measures to evaluate the effectiveness of initiatives intended to improve |
• | Comparable effective tax rate: We adjust the GAAP financial measure to exclude tax effect of Project K and cost reduction activities, acquisitions, divestitures, integration costs, mark-to-market adjustments for pension plans, commodities and certain foreign currency contracts, costs associated with the Venezuela remeasurement, costs associated with the VIE deconsolidation, and costs associated with the early redemption of debt outstanding. We excluded the items which we believe may obscure trends in the company's underlying tax rate. By providing this non-GAAP profitability measure, management intends to provide investors with a meaningful, consistent comparison of the company's effective tax rate for the periods presented. Management uses this non-GAAP measure to monitor the effectiveness of initiatives in place to optimize our global tax rate. |
• | Cash flow: Defined as net cash provided by operating activities reduced by expenditures for property additions. Cash flow does not represent the residual cash flow available for discretionary expenditures. We use this non-GAAP financial measure of cash flow to focus management and investors on the amount of cash available for debt repayment, dividend distributions, acquisition opportunities, and share repurchases once all of the Company’s business needs and obligations are met. Additionally, certain performance-based compensation includes a component of this non-GAAP measure. |
Reconciliation of Non-GAAP amounts - 2016 Full Year Guidance* | |||
Net sales | Operating profit | EPS | |
Currency-Neutral Comparable Guidance | 4.0% - 6.0% | 15.0% - 17.0% | $4.11 - $4.18 |
Foreign currency impact | (7.8%) | (13.8%) | ($.53) |
Comparable Guidance | (1.8%) - (3.8%) | 1.2% - 3.2% | $3.58 - $3.65 |
Impact of certain items that are excluded from Non-GAAP guidance: | |||
Project K and cost reduction activities | - | 5.9% - 9.5% | ($.70) - ($.56) |
Other costs impacting comparability | - | (3.9%) - (4.0%) | ($.43) |
Integration costs | - | 1.0% - 1.3% | ($.04) - ($.03) |
Income tax benefit applicable to adjustments, net** | $.36 - $.32 |
Reconciliation of Non-GAAP amounts - Cash Flow Guidance | |
(millions) | |
Full Year 2016 | |
Net cash provided by (used in) operating activities | Approx. $1,675 |
Additions to properties | ($525) - ($625) |
Cash Flow | Approx. $1,100 |
Quarter ended | Year-to-date period ended | |||||||||||||||
(Results are unaudited) | July 2, 2016 | July 4, 2015 | July 2, 2016 | July 4, 2015 | ||||||||||||
Net sales | $ | 3,268 | $ | 3,498 | $ | 6,663 | $ | 7,054 | ||||||||
Cost of goods sold | 1,998 | 2,257 | 4,148 | 4,568 | ||||||||||||
Selling, general and administrative expense | 821 | 829 | 1,628 | 1,690 | ||||||||||||
Operating profit | 449 | 412 | 887 | 796 | ||||||||||||
Interest expense | 68 | 58 | 285 | 112 | ||||||||||||
Other income (expense), net | 4 | (46 | ) | 4 | (72 | ) | ||||||||||
Income before income taxes | 385 | 308 | 606 | 612 | ||||||||||||
Income taxes | 106 | 85 | 153 | 161 | ||||||||||||
Earnings (loss) from unconsolidated entities | 1 | (1 | ) | 2 | (2 | ) | ||||||||||
Net income | $ | 280 | $ | 222 | $ | 455 | $ | 449 | ||||||||
Net income (loss) attributable to noncontrolling interests | — | (1 | ) | — | (1 | ) | ||||||||||
Net income attributable to Kellogg Company | $ | 280 | $ | 223 | $ | 455 | $ | 450 | ||||||||
Per share amounts: | ||||||||||||||||
Basic | $ | 0.80 | $ | 0.63 | $ | 1.30 | $ | 1.27 | ||||||||
Diluted | $ | 0.79 | $ | 0.63 | $ | 1.29 | $ | 1.26 | ||||||||
Dividends per share | $ | 0.50 | $ | 0.49 | $ | 1.00 | $ | 0.98 | ||||||||
Average shares outstanding: | ||||||||||||||||
Basic | 350 | 353 | 350 | 354 | ||||||||||||
Diluted | 354 | 355 | 354 | 356 | ||||||||||||
Actual shares outstanding at period end | 349 | 353 |
Quarter ended | Year-to-date period ended | |||||||||||||||
(Results are unaudited) | July 2, 2016 | July 4, 2015 | July 2, 2016 | July 4, 2015 | ||||||||||||
Net sales | ||||||||||||||||
U.S. Morning Foods | $ | 727 | $ | 742 | $ | 1,494 | $ | 1,518 | ||||||||
U.S. Snacks | 803 | 835 | 1,635 | 1,689 | ||||||||||||
U.S. Specialty | 271 | 270 | 647 | 631 | ||||||||||||
North America Other | 406 | 439 | 820 | 872 | ||||||||||||
Europe | 629 | 650 | 1,227 | 1,257 | ||||||||||||
Latin America | 204 | 328 | 396 | 623 | ||||||||||||
Asia Pacific | 228 | 234 | 444 | 464 | ||||||||||||
Consolidated | $ | 3,268 | $ | 3,498 | $ | 6,663 | $ | 7,054 | ||||||||
Operating profit | ||||||||||||||||
U.S. Morning Foods | $ | 165 | $ | 131 | $ | 313 | $ | 258 | ||||||||
U.S. Snacks | 69 | 160 | 152 | 240 | ||||||||||||
U.S. Specialty | 60 | 59 | 146 | 137 | ||||||||||||
North America Other | 47 | 37 | 92 | 96 | ||||||||||||
Europe | 68 | 57 | 138 | 118 | ||||||||||||
Latin America | 20 | (56 | ) | 43 | (5 | ) | ||||||||||
Asia Pacific | 12 | 10 | 29 | 22 | ||||||||||||
Total Reportable Segments | 441 | 398 | 913 | 866 | ||||||||||||
Corporate | 8 | 14 | (26 | ) | (70 | ) | ||||||||||
Consolidated | $ | 449 | $ | 412 | $ | 887 | $ | 796 | ||||||||
Year-to-date period ended | ||||||||
(unaudited) | July 2, 2016 | July 4, 2015 | ||||||
Operating activities | ||||||||
Net income | $ | 455 | $ | 449 | ||||
Adjustments to reconcile net income to operating cash flows: | ||||||||
Depreciation and amortization | 251 | 269 | ||||||
Postretirement benefit plan expense (benefit) | (56 | ) | (41 | ) | ||||
Deferred income taxes | 7 | (11 | ) | |||||
Stock compensation | 30 | 21 | ||||||
Venezuela remeasurement | 11 | 152 | ||||||
Variable-interest entity impairment | — | (49 | ) | |||||
Other | — | 35 | ||||||
Postretirement benefit plan contributions | (23 | ) | (17 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions | (27 | ) | (227 | ) | ||||
Net cash provided by (used in) operating activities | 648 | 581 | ||||||
Investing activities | ||||||||
Additions to properties | (249 | ) | (258 | ) | ||||
Acquisitions, net of cash acquired | (15 | ) | (117 | ) | ||||
Investments in unconsolidated entities, net proceeds | 29 | — | ||||||
Other | (15 | ) | 42 | |||||
Net cash provided by (used in) investing activities | (250 | ) | (333 | ) | ||||
Financing activities | ||||||||
Net issuances (reductions) of notes payable | (424 | ) | 114 | |||||
Issuances of long-term debt | 2,061 | 672 | ||||||
Reductions of long-term debt | (1,227 | ) | (606 | ) | ||||
Net issuances of common stock | 233 | 90 | ||||||
Common stock repurchases | (386 | ) | (285 | ) | ||||
Cash dividends | (351 | ) | (347 | ) | ||||
Other | — | 5 | ||||||
Net cash provided by (used in) financing activities | (94 | ) | (357 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (24 | ) | (40 | ) | ||||
Increase (decrease) in cash and cash equivalents | 280 | (149 | ) | |||||
Cash and cash equivalents at beginning of period | 251 | 443 | ||||||
Cash and cash equivalents at end of period | 531 | $ | 294 | |||||
Supplemental financial data: | ||||||||
Net cash provided by (used in) operating activities | $ | 648 | $ | 581 | ||||
Additions to properties | (249 | ) | (258 | ) | ||||
Cash Flow (operating cash flow less property additions) (a) | $ | 399 | $ | 323 |
(a) | Non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" paragraph and "Reconciliation of Non-GAAP Amounts" tables within this release for important information regarding these measures. |
July 2, 2016 | January 2, 2016 | |||||||
(unaudited) | * | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 531 | $ | 251 | ||||
Accounts receivable, net | 1,473 | 1,344 | ||||||
Inventories: | ||||||||
Raw materials and supplies | 322 | 315 | ||||||
Finished goods and materials in process | 894 | 935 | ||||||
Deferred income taxes | — | 227 | ||||||
Other prepaid assets | 201 | 164 | ||||||
Total current assets | 3,421 | 3,236 | ||||||
Property, net of accumulated depreciation of $5,310 and $5,236 | 3,543 | 3,621 | ||||||
Investments in unconsolidated entities | 435 | 456 | ||||||
Goodwill | 4,963 | 4,968 | ||||||
Other intangibles, net of accumulated amortization of $51 and $47 | 2,282 | 2,268 | ||||||
Pension | 246 | 231 | ||||||
Other assets | 497 | 471 | ||||||
Total assets | $ | 15,387 | $ | 15,251 | ||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 1,144 | $ | 1,266 | ||||
Notes payable | 780 | 1,204 | ||||||
Accounts payable | 1,988 | 1,907 | ||||||
Accrued advertising and promotion | 464 | 447 | ||||||
Accrued income taxes | 83 | 42 | ||||||
Accrued salaries and wages | 238 | 325 | ||||||
Other current liabilities | 574 | 548 | ||||||
Total current liabilities | 5,271 | 5,739 | ||||||
Long-term debt | 6,277 | 5,275 | ||||||
Deferred income taxes | 477 | 685 | ||||||
Pension liability | 922 | 946 | ||||||
Nonpension postretirement benefits | 58 | 77 | ||||||
Other liabilities | 382 | 391 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Common stock, $.25 par value | 105 | 105 | ||||||
Capital in excess of par value | 770 | 745 | ||||||
Retained earnings | 6,701 | 6,597 | ||||||
Treasury stock, at cost | (4,092 | ) | (3,943 | ) | ||||
Accumulated other comprehensive income (loss) | (1,494 | ) | (1,376 | ) | ||||
Total Kellogg Company equity | 1,990 | 2,128 | ||||||
Noncontrolling interests | 10 | 10 | ||||||
Total equity | 2,000 | 2,138 | ||||||
Total liabilities and equity | $ | 15,387 | $ | 15,251 |
Quarter ended July 2, 2016 | |||||||||||||||||||||||||||
(Results are unaudited) | Mark-to- market | Project K and cost reduction activities | Other costs impacting comparability | Acquisitions/divestitures and integration costs | Shipping day differences | Venezuela remeasurement | Income tax benefit applicable to adjustments, net | Foreign currency impact | Comparable adjustments | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | 5 | $ | — | $ | — | $ | (528 | ) | $ | (523 | ) | |||||||||
Cost of goods sold | (16 | ) | 36 | — | 3 | — | 7 | (437 | ) | (407 | ) | ||||||||||||||||
Selling, general and administrative expense | (4 | ) | 36 | — | 1 | — | — | (39 | ) | (6 | ) | ||||||||||||||||
Operating profit | 20 | (72 | ) | — | 1 | — | (7 | ) | (52 | ) | (110 | ) | |||||||||||||||
Interest expense | — | — | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||||
Other income (expense), net | — | — | — | (1 | ) | — | 2 | 7 | 8 | ||||||||||||||||||
Income (loss) before income taxes | 20 | (72 | ) | — | — | — | (5 | ) | (40 | ) | (97 | ) | |||||||||||||||
Income taxes | — | — | — | — | — | — | (16 | ) | (9 | ) | (25 | ) | |||||||||||||||
Net income (loss) | $ | 20 | $ | (72 | ) | $ | — | $ | — | $ | — | $ | (5 | ) | $ | 16 | $ | (31 | ) | $ | (72 | ) | |||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net income (loss) attributable to Kellogg Company | $ | 20 | $ | (72 | ) | $ | — | $ | — | $ | — | $ | (5 | ) | $ | 16 | $ | (31 | ) | $ | (72 | ) | |||||
Per share amounts: | |||||||||||||||||||||||||||
Diluted | $ | 0.05 | $ | (0.20 | ) | $ | — | $ | — | $ | — | $ | (0.01 | ) | $ | 0.04 | $ | (0.09 | ) | $ | (0.21 | ) | |||||
Quarter ended July 4, 2015 | |||||||||||||||||||||||||||
(Results are unaudited) | Mark-to- market | Project K and cost reduction activities | Other costs impacting comparability | Acquisitions/divestitures and integration costs | Shipping day differences | Venezuela remeasurement | Income tax benefit applicable to adjustments, net | Comparable adjustments | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||||
Cost of goods sold | (34 | ) | 65 | — | 8 | — | 100 | 139 | |||||||||||||||||||
Selling, general and administrative expense | (1 | ) | 25 | (67 | ) | 3 | — | 3 | (37 | ) | |||||||||||||||||
Operating profit | 35 | (90 | ) | 67 | (3 | ) | — | (103 | ) | (94 | ) | ||||||||||||||||
Interest expense | — | — | — | — | — | — | — | ||||||||||||||||||||
Other income (expense), net | — | — | 6 | (3 | ) | — | (49 | ) | (46 | ) | |||||||||||||||||
Income (loss) before income taxes | 35 | (90 | ) | 73 | (6 | ) | — | (152 | ) | (140 | ) | ||||||||||||||||
Income taxes | — | — | — | — | — | — | (36 | ) | (36 | ) | |||||||||||||||||
Net income (loss) | $ | 35 | $ | (90 | ) | $ | 73 | $ | (6 | ) | $ | — | $ | (152 | ) | $ | 36 | $ | (104 | ) | |||||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to Kellogg Company | $ | 35 | $ | (90 | ) | $ | 73 | $ | (6 | ) | $ | — | $ | (152 | ) | $ | 36 | $ | (104 | ) | |||||||
Per share amounts: | |||||||||||||||||||||||||||
Diluted | $ | 0.10 | $ | (0.25 | ) | $ | 0.21 | $ | (0.02 | ) | $ | — | $ | (0.43 | ) | $ | 0.10 | $ | (0.29 | ) |
Year-to-date period ended July 2, 2016 | |||||||||||||||||||||||||||
(Results are unaudited) | Mark-to- market | Project K and cost reduction activities | Other costs impacting comparability | Acquisitions/divestitures and integration costs | Shipping day differences | Venezuela remeasurement | Income tax benefit applicable to adjustments, net | Foreign currency impact | Comparable adjustments | ||||||||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | 20 | $ | — | $ | — | $ | (944 | ) | $ | (924 | ) | |||||||||
Cost of goods sold | 9 | 54 | — | 15 | — | 12 | (622 | ) | (532 | ) | |||||||||||||||||
Selling, general and administrative expense | (5 | ) | 70 | — | 4 | — | 1 | (79 | ) | (9 | ) | ||||||||||||||||
Operating profit | (4 | ) | (124 | ) | — | 1 | — | (13 | ) | (243 | ) | (383 | ) | ||||||||||||||
Interest expense | — | — | 153 | — | — | — | (10 | ) | 143 | ||||||||||||||||||
Other income (expense), net | — | — | — | (1 | ) | — | 2 | 2 | 3 | ||||||||||||||||||
Income (loss) before income taxes | (4 | ) | (124 | ) | (153 | ) | — | — | (11 | ) | (231 | ) | (523 | ) | |||||||||||||
Income taxes | — | — | — | — | — | — | (85 | ) | (68 | ) | (153 | ) | |||||||||||||||
Net income (loss) | $ | (4 | ) | $ | (124 | ) | $ | (153 | ) | $ | — | $ | — | $ | (11 | ) | $ | 85 | $ | (163 | ) | $ | (370 | ) | |||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Net income (loss) attributable to Kellogg Company | $ | (4 | ) | $ | (124 | ) | $ | (153 | ) | $ | — | $ | — | $ | (11 | ) | $ | 85 | $ | (163 | ) | $ | (370 | ) | |||
Per share amounts: | |||||||||||||||||||||||||||
Diluted | $ | (0.01 | ) | $ | (0.35 | ) | $ | (0.43 | ) | $ | — | $ | — | $ | (0.03 | ) | $ | 0.24 | $ | (0.46 | ) | $ | (1.04 | ) | |||
Year-to-date period ended July 4, 2015 | |||||||||||||||||||||||||||
(Results are unaudited) | Mark-to- market | Project K and cost reduction activities | Other costs impacting comparability | Acquisitions/divestitures and integration costs | Shipping day differences | Venezuela remeasurement | Income tax benefit applicable to adjustments, net | Comparable adjustments | |||||||||||||||||||
Net sales | $ | — | $ | (2 | ) | $ | — | $ | 8 | $ | (3 | ) | $ | — | $ | 3 | |||||||||||
Cost of goods sold | 34 | 97 | — | 14 | (3 | ) | 100 | 242 | |||||||||||||||||||
Selling, general and administrative expense | (2 | ) | 59 | (67 | ) | 5 | — | 3 | (2 | ) | |||||||||||||||||
Operating profit | (32 | ) | (158 | ) | 67 | (11 | ) | — | (103 | ) | (237 | ) | |||||||||||||||
Interest expense | — | — | — | — | — | — | — | ||||||||||||||||||||
Other income (expense), net | — | — | (19 | ) | (3 | ) | — | (49 | ) | (71 | ) | ||||||||||||||||
Income (loss) before income taxes | (32 | ) | (158 | ) | 48 | (14 | ) | — | (152 | ) | (308 | ) | |||||||||||||||
Income taxes | — | — | — | — | — | — | (80 | ) | (80 | ) | |||||||||||||||||
Net income (loss) | $ | (32 | ) | $ | (158 | ) | $ | 48 | $ | (14 | ) | $ | — | $ | (152 | ) | $ | 80 | $ | (228 | ) | ||||||
Net income (loss) attributable to noncontrolling interests | — | — | — | — | — | — | — | — | |||||||||||||||||||
Net income (loss) attributable to Kellogg Company | $ | (32 | ) | $ | (158 | ) | $ | 48 | $ | (14 | ) | $ | — | $ | (152 | ) | $ | 80 | $ | (228 | ) | ||||||
Per share amounts: | |||||||||||||||||||||||||||
Diluted | $ | (0.09 | ) | $ | (0.44 | ) | $ | 0.13 | $ | (0.04 | ) | $ | — | $ | (0.43 | ) | $ | 0.23 | $ | (0.64 | ) |
Quarter ended July 2, 2016 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported net sales | $ | 727 | $ | 803 | $ | 271 | $ | 406 | $ | 2,207 | $ | 629 | $ | 204 | $ | 228 | $ | — | $ | 3,268 | ||||||||||||||||||||
Project K and cost reduction activities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | 5 | — | — | — | 5 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Comparable net sales | $ | 727 | $ | 803 | $ | 271 | $ | 406 | $ | 2,207 | $ | 624 | $ | 204 | $ | 228 | $ | — | $ | 3,263 | ||||||||||||||||||||
Foreign currency impact | — | — | — | (4 | ) | (4 | ) | (26 | ) | (491 | ) | (7 | ) | — | (528 | ) | ||||||||||||||||||||||||
Currency-neutral comparable net sales | $ | 727 | $ | 803 | $ | 271 | $ | 410 | $ | 2,211 | $ | 650 | $ | 695 | $ | 235 | $ | — | $ | 3,791 | ||||||||||||||||||||
Quarter ended July 4, 2015 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported net sales | $ | 742 | $ | 835 | $ | 270 | $ | 439 | $ | 2,286 | $ | 650 | $ | 328 | $ | 234 | $ | — | $ | 3,498 | ||||||||||||||||||||
Project K and cost reduction activities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Comparable net sales | $ | 742 | $ | 835 | $ | 270 | $ | 439 | $ | 2,286 | $ | 650 | $ | 328 | $ | 226 | $ | — | $ | 3,490 | ||||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
Reported growth | (2.0 | )% | (3.9 | )% | 0.5 | % | (7.4 | )% | (3.4 | )% | (3.2 | )% | (37.9 | )% | (2.9 | )% | — | % | (6.6 | )% | ||||||||||||||||||||
Project K and cost reduction activities | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | % | — | % | — | % | 0.1 | % | 0.1 | % | 0.7 | % | — | % | (3.1 | )% | — | % | (0.1 | )% | ||||||||||||||||||||
Differences in shipping days | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Comparable growth | (2.0 | )% | (3.9 | )% | 0.5 | % | (7.5 | )% | (3.5 | )% | (3.9 | )% | (37.9 | )% | 0.2 | % | — | % | (6.5 | )% | ||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | (1.1 | )% | (0.3 | )% | (3.9 | )% | (149.8 | )% | (3.2 | )% | — | % | (15.1 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | (2.0 | )% | (3.9 | )% | 0.5 | % | (6.4 | )% | (3.2 | )% | — | % | 111.9 | % | 3.4 | % | — | % | 8.6 | % | ||||||||||||||||||||
Volume (tonnage) | (2.4 | )% | (0.4 | )% | (4.9 | )% | 5.8 | % | — | % | (1.6 | )% | ||||||||||||||||||||||||||||
Pricing/mix | (0.8 | )% | 0.4 | % | 116.8 | % | (2.4 | )% | — | % | 10.2 | % |
Year-to-date period ended July 2, 2016 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported net sales | $ | 1,494 | $ | 1,635 | $ | 647 | $ | 820 | $ | 4,596 | $ | 1,227 | $ | 396 | $ | 444 | $ | — | $ | 6,663 | ||||||||||||||||||||
Project K and cost reduction activities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | 1 | 1 | 19 | — | — | — | 20 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Comparable net sales | $ | 1,494 | $ | 1,635 | $ | 647 | $ | 819 | $ | 4,595 | $ | 1,208 | $ | 396 | $ | 444 | $ | — | $ | 6,643 | ||||||||||||||||||||
Foreign currency impact | — | — | — | (15 | ) | (15 | ) | (47 | ) | (860 | ) | (22 | ) | — | (944 | ) | ||||||||||||||||||||||||
Currency-neutral comparable net sales | $ | 1,494 | $ | 1,635 | $ | 647 | $ | 834 | $ | 4,610 | $ | 1,255 | $ | 1,256 | $ | 466 | $ | — | $ | 7,587 | ||||||||||||||||||||
Year-to-date period ended July 4, 2015 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported net sales | $ | 1,518 | $ | 1,689 | $ | 631 | $ | 872 | $ | 4,710 | $ | 1,257 | $ | 623 | $ | 464 | $ | — | $ | 7,054 | ||||||||||||||||||||
Project K and cost reduction activities | — | — | — | (2 | ) | (2 | ) | — | — | — | — | (2 | ) | |||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||||||||
Comparable net sales | $ | 1,518 | $ | 1,689 | $ | 631 | $ | 874 | $ | 4,712 | $ | 1,260 | $ | 623 | $ | 456 | $ | — | $ | 7,051 | ||||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
Reported growth | (1.6 | )% | (3.2 | )% | 2.6 | % | (5.9 | )% | (2.4 | )% | (2.4 | )% | (36.5 | )% | (4.3 | )% | — | % | (5.5 | )% | ||||||||||||||||||||
Project K and cost reduction activities | — | % | — | % | — | % | 0.2 | % | 0.1 | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | % | — | % | — | % | 0.2 | % | — | % | 1.5 | % | — | % | (1.6 | )% | — | % | 0.2 | % | ||||||||||||||||||||
Differences in shipping days | — | % | — | % | — | % | — | % | — | % | 0.2 | % | — | % | — | % | — | % | 0.1 | % | ||||||||||||||||||||
Comparable growth | (1.6 | )% | (3.2 | )% | 2.6 | % | (6.3 | )% | (2.5 | )% | (4.1 | )% | (36.5 | )% | (2.7 | )% | — | % | (5.8 | )% | ||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | (1.8 | )% | (0.3 | )% | (3.7 | )% | (138.2 | )% | (4.9 | )% | — | % | (13.4 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | (1.6 | )% | (3.2 | )% | 2.6 | % | (4.5 | )% | (2.2 | )% | (0.4 | )% | 101.7 | % | 2.2 | % | — | % | 7.6 | % | ||||||||||||||||||||
Volume (tonnage) | (1.7 | )% | 0.6 | % | (4.1 | )% | 3.3 | % | — | % | (1.1 | )% | ||||||||||||||||||||||||||||
Pricing/mix | (0.5 | )% | (1.0 | )% | 105.8 | % | (1.1 | )% | — | % | 8.7 | % |
Quarter ended July 2, 2016 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported | $ | 165 | $ | 69 | $ | 60 | $ | 47 | $ | 341 | $ | 68 | $ | 20 | $ | 12 | $ | 8 | $ | 449 | ||||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | 20 | 20 | ||||||||||||||||||||||||||||||
Project K and cost reduction activities | (4 | ) | (34 | ) | (1 | ) | (4 | ) | (43 | ) | (14 | ) | (4 | ) | (4 | ) | (7 | ) | (72 | ) | ||||||||||||||||||||
Other costs impacting comparability | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (7 | ) | — | — | (7 | ) | ||||||||||||||||||||||||||||
Comparable | $ | 169 | $ | 103 | $ | 61 | $ | 51 | $ | 384 | $ | 81 | $ | 31 | $ | 16 | $ | (5 | ) | $ | 507 | |||||||||||||||||||
Foreign currency impact | — | — | — | (2 | ) | (2 | ) | (7 | ) | (47 | ) | 1 | 3 | (52 | ) | |||||||||||||||||||||||||
Currency-neutral comparable | $ | 169 | $ | 103 | $ | 61 | $ | 53 | $ | 386 | $ | 88 | $ | 78 | $ | 15 | $ | (8 | ) | $ | 559 | |||||||||||||||||||
Quarter ended July 4, 2015 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported | $ | 131 | $ | 160 | $ | 59 | $ | 37 | $ | 387 | $ | 57 | $ | (56 | ) | $ | 10 | $ | 14 | $ | 412 | |||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | 35 | 35 | ||||||||||||||||||||||||||||||
Project K and cost reduction activities | (13 | ) | (10 | ) | (1 | ) | (23 | ) | (47 | ) | (25 | ) | (1 | ) | (3 | ) | (14 | ) | (90 | ) | ||||||||||||||||||||
Other costs impacting comparability | — | 67 | — | — | 67 | — | — | — | — | 67 | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | (3 | ) | — | 1 | (1 | ) | (3 | ) | |||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (102 | ) | — | (1 | ) | (103 | ) | |||||||||||||||||||||||||||
Comparable | $ | 144 | $ | 103 | $ | 60 | $ | 60 | $ | 367 | $ | 85 | $ | 47 | $ | 12 | $ | (5 | ) | $ | 506 | |||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
Reported growth | 25.1 | % | (57.2 | )% | 2.5 | % | 31.8 | % | (11.9 | )% | 19.5 | % | 135.2 | % | 18.1 | % | (35.3 | )% | 9.1 | % | ||||||||||||||||||||
Mark-to-market | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | (83.7 | )% | (5.0 | )% | ||||||||||||||||||||
Project K and cost reduction activities | 8.0 | % | (17.3 | )% | (1.5 | )% | 43.5 | % | (0.8 | )% | 19.5 | % | (7.5 | )% | 5.5 | % | 1.6 | % | 6.5 | % | ||||||||||||||||||||
Other costs impacting comparability | — | % | (38.4 | )% | — | % | — | % | (16.2 | )% | — | % | — | % | — | % | — | % | (17.9 | )% | ||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | % | — | % | — | % | (0.1 | )% | — | % | 3.5 | % | (0.3 | )% | (5.8 | )% | 14.6 | % | 1.3 | % | ||||||||||||||||||||
Differences in shipping days | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Venezuela remeasurement | — | % | — | % | — | % | — | % | — | % | — | % | 179.9 | % | — | % | 13.2 | % | 23.9 | % | ||||||||||||||||||||
Comparable growth | 17.1 | % | (1.5 | )% | 4.0 | % | (11.6 | )% | 5.1 | % | (3.5 | )% | (36.9 | )% | 18.4 | % | 19.0 | % | 0.3 | % | ||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | (1.1 | )% | (0.2 | )% | (7.2 | )% | (103.5 | )% | 0.9 | % | 68.5 | % | (10.3 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | 17.1 | % | (1.5 | )% | 4.0 | % | (10.5 | )% | 5.3 | % | 3.7 | % | 66.6 | % | 17.5 | % | (49.5 | )% | 10.6 | % |
Year-to-date period ended July 2, 2016 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported | $ | 313 | $ | 152 | $ | 146 | $ | 92 | $ | 703 | $ | 138 | $ | 43 | $ | 29 | $ | (26 | ) | $ | 887 | |||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||
Project K and cost reduction activities | (9 | ) | (54 | ) | (3 | ) | (13 | ) | (79 | ) | (28 | ) | (4 | ) | (4 | ) | (9 | ) | (124 | ) | ||||||||||||||||||||
Other costs impacting comparability | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (13 | ) | — | — | (13 | ) | ||||||||||||||||||||||||||||
Comparable | $ | 322 | $ | 206 | $ | 149 | $ | 105 | $ | 782 | $ | 165 | $ | 60 | $ | 33 | $ | (13 | ) | $ | 1,027 | |||||||||||||||||||
Foreign currency impact | — | — | — | (3 | ) | (3 | ) | (9 | ) | (237 | ) | — | 6 | (243 | ) | |||||||||||||||||||||||||
Currency-neutral comparable | $ | 322 | $ | 206 | $ | 149 | $ | 108 | $ | 785 | $ | 174 | $ | 297 | $ | 33 | $ | (19 | ) | $ | 1,270 | |||||||||||||||||||
Year-to-date period ended July 4, 2015 | ||||||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Total North America | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | ||||||||||||||||||||||||||||||
Reported | $ | 258 | $ | 240 | $ | 137 | $ | 96 | $ | 731 | $ | 118 | $ | (5 | ) | $ | 22 | $ | (70 | ) | $ | 796 | ||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | (32 | ) | (32 | ) | ||||||||||||||||||||||||||||
Project K and cost reduction activities | (21 | ) | (19 | ) | (2 | ) | (29 | ) | (71 | ) | (44 | ) | (1 | ) | (8 | ) | (34 | ) | (158 | ) | ||||||||||||||||||||
Other costs impacting comparability | — | 67 | — | — | 67 | — | — | — | — | 67 | ||||||||||||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | — | — | — | — | (8 | ) | — | (2 | ) | (1 | ) | (11 | ) | ||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (102 | ) | — | (1 | ) | (103 | ) | |||||||||||||||||||||||||||
Comparable | $ | 279 | $ | 192 | $ | 139 | $ | 125 | $ | 735 | $ | 170 | $ | 98 | $ | 32 | $ | (2 | ) | $ | 1,033 | |||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
Reported growth | 21.1 | % | (36.7 | )% | 6.5 | % | (3.5 | )% | (3.8 | )% | 16.5 | % | 929.1 | % | 28.5 | % | 64.3 | % | 11.5 | % | ||||||||||||||||||||
Mark-to-market | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | 18.3 | % | 3.8 | % | ||||||||||||||||||||
Project K and cost reduction activities | 5.7 | % | (16.1 | )% | (1.1 | )% | 11.8 | % | (1.4 | )% | 14.2 | % | (372.8 | )% | 21.1 | % | 234.9 | % | 4.6 | % | ||||||||||||||||||||
Other costs impacting comparability | — | % | (27.4 | )% | — | % | — | % | (8.9 | )% | — | % | — | % | — | % | — | % | (7.4 | )% | ||||||||||||||||||||
Acquisitions/divestitures and integration costs | — | % | — | % | — | % | (0.2 | )% | — | % | 5.5 | % | (138.3 | )% | 5.0 | % | 172.7 | % | 1.4 | % | ||||||||||||||||||||
Differences in shipping days | — | % | — | % | — | % | — | % | — | % | 0.3 | % | — | % | — | % | — | % | 0.1 | % | ||||||||||||||||||||
Venezuela remeasurement | — | % | — | % | — | % | — | % | — | % | — | % | 1,479.1 | % | — | % | 276.1 | % | 9.5 | % | ||||||||||||||||||||
Comparable growth | 15.4 | % | 6.8 | % | 7.6 | % | (15.1 | )% | 6.5 | % | (3.5 | )% | (38.9 | )% | 2.4 | % | (637.7 | )% | (0.5 | )% | ||||||||||||||||||||
Foreign currency impact | 0.1 | % | — | % | — | % | (2.0 | )% | (0.3 | )% | (5.6 | )% | (242.2 | )% | (0.9 | )% | 435.0 | % | (23.5 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | 15.3 | % | 6.8 | % | 7.6 | % | (13.1 | )% | 6.8 | % | 2.1 | % | 203.3 | % | 3.3 | % | (1,072.7 | )% | 23.0 | % |
Quarter ended | Year-to-date period ended | |||||||||||
July 2, 2016 | July 4, 2015 | July 2, 2016 | July 4, 2015 | |||||||||
Reported effective tax rate | 27.4 | % | 27.6 | % | 25.2 | % | 26.4 | % | ||||
Mark-to-market | 0.5 | % | 1.1 | % | 0.5 | % | 0.1 | % | ||||
Project K and cost reduction activities | (1.0 | )% | (0.5 | )% | (0.2 | )% | (0.7 | )% | ||||
Other costs impacting comparability | — | % | (7.4 | )% | (1.7 | )% | (1.9 | )% | ||||
Acquisitions/divestitures and integration costs | — | % | 0.3 | % | (0.1 | )% | 0.2 | % | ||||
Venezuela remeasurement | 0.3 | % | 7.2 | % | 0.3 | % | 2.6 | % | ||||
Comparable effective tax rate | 27.6 | % | 26.9 | % | 26.4 | % | 26.1 | % |
Quarter ended July 2, 2016 | Year-to-date period ended July 2, 2016 | |||||||||||||||||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||
U.S. Morning Foods | $ | — | $ | 1 | $ | 3 | $ | 4 | $ | — | $ | 1 | $ | 8 | $ | 9 | ||||||||||||||||
U.S. Snacks | — | 24 | 10 | 34 | — | 31 | 23 | 54 | ||||||||||||||||||||||||
U.S. Specialty | — | — | 1 | 1 | — | — | 3 | 3 | ||||||||||||||||||||||||
North America Other | — | 3 | 1 | 4 | — | 8 | 5 | 13 | ||||||||||||||||||||||||
Europe | — | 7 | 7 | 14 | — | 13 | 15 | 28 | ||||||||||||||||||||||||
Latin America | — | — | 4 | 4 | — | — | 4 | 4 | ||||||||||||||||||||||||
Asia Pacific | — | 1 | 3 | 4 | — | 1 | 3 | 4 | ||||||||||||||||||||||||
Corporate | — | — | 7 | 7 | — | — | 9 | 9 | ||||||||||||||||||||||||
Total | $ | — | $ | 36 | $ | 36 | $ | 72 | $ | — | $ | 54 | $ | 70 | $ | 124 | ||||||||||||||||
Quarter ended July 4, 2015 | Year-to-date period ended July 4, 2015 | |||||||||||||||||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
U.S. Morning Foods | $ | — | $ | 11 | $ | 2 | $ | 13 | $ | — | $ | 16 | $ | 5 | $ | 21 | ||||||||||||||||
U.S. Snacks | — | 8 | 2 | 10 | — | 13 | 6 | 19 | ||||||||||||||||||||||||
U.S. Specialty | — | — | 1 | 1 | — | — | 2 | 2 | ||||||||||||||||||||||||
North America Other | — | 23 | — | 23 | 2 | 25 | 2 | 29 | ||||||||||||||||||||||||
Europe | — | 20 | 5 | 25 | — | 36 | 8 | 44 | ||||||||||||||||||||||||
Latin America | — | 1 | — | 1 | — | 1 | — | 1 | ||||||||||||||||||||||||
Asia Pacific | — | 2 | 1 | 3 | — | 6 | 2 | 8 | ||||||||||||||||||||||||
Corporate | — | — | 14 | 14 | — | — | 34 | 34 | ||||||||||||||||||||||||
Total | $ | — | $ | 65 | $ | 25 | $ | 90 | $ | 2 | $ | 97 | $ | 59 | $ | 158 |
Quarter ended July 2, 2016 | Year-to-date period ended July 2, 2016 | |||||||||||||||||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||
North America Other | $ | — | $ | (1 | ) | $ | 1 | $ | — | $ | (1 | ) | $ | — | $ | 1 | $ | — | ||||||||||||||
Europe | (5 | ) | 4 | — | (1 | ) | (19 | ) | 15 | 3 | (1 | ) | ||||||||||||||||||||
Asia Pacific | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Corporate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | (5 | ) | $ | 3 | $ | 1 | $ | (1 | ) | $ | (20 | ) | $ | 15 | $ | 4 | $ | (1 | ) | ||||||||||||
Quarter ended July 4, 2015 | Year-to-date period ended July 4, 2015 | |||||||||||||||||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
North America Other | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Europe | — | 2 | 1 | 3 | — | 5 | 3 | 8 | ||||||||||||||||||||||||
Asia Pacific | (8 | ) | 6 | 1 | (1 | ) | (8 | ) | 9 | 1 | 2 | |||||||||||||||||||||
Corporate | — | — | 1 | 1 | — | — | 1 | 1 | ||||||||||||||||||||||||
Total | $ | (8 | ) | $ | 8 | $ | 3 | $ | 3 | $ | (8 | ) | $ | 14 | $ | 5 | $ | 11 |
Quarter ended July 2, 2016 | Year-to-date period ended July 2, 2016 | |||||||||||||||||||||||||||||||
Cost of goods sold | Selling, general and administrative expense | Other (income) expense | Total | Cost of goods sold | Selling, general and administrative expense | Other (income) expense | Total | |||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||
Latin America | $ | 7 | $ | — | $ | (2 | ) | $ | 5 | $ | 12 | $ | 1 | $ | (2 | ) | $ | 11 | ||||||||||||||
Corporate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 7 | $ | — | $ | (2 | ) | $ | 5 | $ | 12 | $ | 1 | $ | (2 | ) | $ | 11 | ||||||||||||||
Quarter ended July 4, 2015 | Year-to-date period ended July 4, 2015 | |||||||||||||||||||||||||||||||
Cost of goods sold | Selling, general and administrative expense | Other (income) expense | Total | Cost of goods sold | Selling, general and administrative expense | Other (income) expense | Total | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
Latin America | $ | 99 | $ | 3 | $ | 10 | $ | 112 | $ | 99 | $ | 3 | $ | 10 | $ | 112 | ||||||||||||||||
Corporate | 1 | — | 39 | 40 | 1 | — | 39 | 40 | ||||||||||||||||||||||||
Total | $ | 100 | $ | 3 | $ | 49 | $ | 152 | $ | 100 | $ | 3 | $ | 49 | $ | 152 |
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