FORM 8-K |
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: February 9, 2017 | /s/ Ronald L. Dissinger | ||
Name: | Ronald L. Dissinger | ||
Title: | Senior Vice President and Chief Financial Officer |
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 ended | ||||||||||||||||||||
(millions, except per share data) | December 31, 2016 | January 2, 2016 | % Change | December 31, 2016 | January 2, 2016 | % Change | ||||||||||||||||
Reported Net Sales | $ | 3,097 | $ | 3,142 | (1.4 | )% | $ | 13,014 | $ | 13,525 | (3.8 | )% | ||||||||||
Comparable Net Sales * | $ | 3,093 | $ | 3,139 | (1.4 | )% | $ | 12,983 | $ | 13,519 | (4.0 | )% | ||||||||||
Comparable Net Sales excluding Venezuela* | $ | 3,085 | $ | 3,132 | (1.5 | )% | $ | 12,952 | $ | 13,322 | (2.8 | )% | ||||||||||
Currency-Neutral Comparable Net Sales * | $ | 3,173 | 1.1 | % | $ | 14,056 | 4.0 | % | ||||||||||||||
Currency-Neutral Comparable Net Sales excluding Venezuela* | $ | 3,147 | 0.5 | % | $ | 13,178 | (1.1 | )% | ||||||||||||||
Reported Operating Profit (Loss) | $ | 98 | $ | (39 | ) | 353.5 | % | $ | 1,395 | $ | 1,091 | 27.8 | % | |||||||||
Comparable Operating Profit * | $ | 494 | $ | 440 | 12.4 | % | $ | 2,003 | $ | 1,939 | 3.3 | % | ||||||||||
Comparable Operating Profit excluding Venezuela* | $ | 493 | $ | 439 | 12.3 | % | $ | 1,994 | $ | 1,912 | 4.3 | % | ||||||||||
Currency-Neutral Comparable Operating Profit* | $ | 512 | 16.7 | % | $ | 2,281 | 17.7 | % | ||||||||||||||
Currency-Neutral Comparable Operating Profit excluding Venezuela* | $ | 509 | 16.0 | % | $ | 2,040 | 6.7 | % | ||||||||||||||
Reported Net Income (Loss) Attributable to Kellogg Company | $ | (53 | ) | $ | (41 | ) | (30.4 | )% | $ | 694 | $ | 614 | 13.0 | % | ||||||||
Comparable Net Income (Loss) Attributable to Kellogg Company * | $ | 324 | $ | 279 | 15.6 | % | $ | 1,326 | $ | 1,257 | 5.5 | % | ||||||||||
Currency-Neutral Comparable Net Income (Loss) Attributable to Kellogg Company * | $ | 348 | 24.8 | % | $ | 1,529 | 21.6 | % | ||||||||||||||
Reported Diluted Earnings (Loss) Per Share | $ | (0.15 | ) | $ | (0.12 | ) | (25.0 | )% | $ | 1.96 | $ | 1.72 | 14.0 | % | ||||||||
Comparable Diluted Earnings (Loss) Per Share * | $ | 0.92 | $ | 0.79 | 16.5 | % | $ | 3.74 | $ | 3.53 | 5.9 | % | ||||||||||
Currency-Neutral Comparable Diluted Earnings (Loss) Per Share * | $ | 0.99 | 25.3 | % | $ | 4.31 | 22.1 | % |
• | While GAAP (or "reported") results were affected by charges for deconsolidating its Venezuela subsidiary and for higher restructuring costs, currency-neutral comparable operating profit and earnings per share were ahead of the Company's expectations in the fourth quarter. |
• | Kellogg’s Q4 2016 reported earnings per share were down 25% from the prior-year quarter, driven mainly by a charge for deconsolidating our Venezuela subsidiary at year-end; higher up-front costs related to the Project K restructuring program; and adverse currency translation. Non-GAAP, comparable earnings per share were up 16.5% from the year-earlier quarter, despite the negative impact of currency translation. Non-GAAP, currency-neutral comparable earnings per share increased by more than 25% year-on-year, and ahead of the |
• | Quarterly reported operating profit increased sharply due to lower mark-to-market charges, as well as to profit-margin expansion across all Regions. Currency-neutral comparable operating profit increased because of the benefit in Cost of Goods Sold and SG&A expenses of Zero-Based Budgeting and Project K savings. |
• | Fourth-quarter 2016 reported net sales decreased, led by adverse currency translation, while currency-neutral comparable net sales increased, including sequential improvement in all of our Regions. |
Reconciliation of Reported to Currency-Neutral Comparable Earnings (Loss) Per Share | |||||||||||||
Quarter ended | Year ended | ||||||||||||
December 31, 2016 | January 2, 2016 | December 31, 2016 | January 2, 2016 | ||||||||||
Reported EPS | $ | (0.15 | ) | $ | (0.12 | ) | $ | 1.96 | $ | 1.72 | |||
Mark-to-Market (pre-tax) | (0.64 | ) | (1.10 | ) | (0.74 | ) | (1.25 | ) | |||||
Project K and Cost Reduction Activities (pre-tax) | (0.46 | ) | (0.22 | ) | (0.92 | ) | (0.91 | ) | |||||
Other Costs Impacting Comparability (pre-tax) | — | — | (0.43 | ) | 0.13 | ||||||||
Integration and Transaction Costs (pre-tax) | (0.02 | ) | (0.02 | ) | (0.03 | ) | (0.08 | ) | |||||
Deconsolidation of Venezuelan Business (pre-tax) | (0.20 | ) | — | (0.20 | ) | — | |||||||
Remeasurement of Venezuelan Business (pre-tax) | — | (0.01 | ) | (0.03 | ) | (0.47 | ) | ||||||
Income Tax Benefit Applicable to Adjustments, Net* | 0.25 | 0.44 | 0.57 | 0.77 | |||||||||
Comparable EPS | $ | 0.92 | $ | 0.79 | $ | 3.74 | $ | 3.53 | |||||
Foreign Exchange | (0.07 | ) | (0.57 | ) | |||||||||
Currency-Neutral Comparable EPS | $ | 0.99 | $ | 4.31 |
• | The fourth quarter featured continued sequential improvement in currency-neutral comparable sales trends, and improving currency-neutral comparable basis operating profit margins. Productivity initiatives continue to deliver efficiencies ahead of pace, and we |
• | Kellogg North America’s net sales in the fourth quarter increased on a reported and currency-neutral comparable basis, led by improved growth in U.S. Snacks and U.S. Specialty Channels. Reported and currency-neutral comparable operating profit increased, as well, on the strength of cost savings under 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 we held share in the cereal category, both for the quarter and the year, led by a collective share gain by our Core Six cereal brands; Pop-Tarts also continued to grow share and net sales. On both a reported and currency-neutral comparable basis, the segment's operating profit and operating-profit margin again improved strongly. |
• | The U.S. Snacks segment posted growth in net sales, on both a reported and currency-neutral comparable basis, an acceleration driven by continued growth in core brands like Cheez-It, Pringles, and Rice Krispies Treats, but also by progress toward stabilizing sales and share in wholesome snacks and cookies. On both a reported and currency-neutral comparable basis, the segment posted another quarter of strong operating profit growth and operating-profit margin expansion. |
• | The U.S. Specialty Channels segment posted accelerated growth in reported and currency-neutral comparable net sales, with growth in key categories and channels. On both a reported and currency-neutral comparable basis, the segment again increased its operating profit and its operating-profit margin. |
• | The North America Other segment, which is comprised of the U.S. Frozen Foods, Kashi, and Canadian businesses, posted a decrease in reported and currency-neutral comparable net sales, due to continued impacts of portfolio rationalization and food and packaging transitions in Frozen Foods and Kashi, partially offset by growth in Canada. On a reported and currency-neutral comparable basis, the |
• | Kellogg Europe posted a decrease in reported net sales, driven primarily by adverse currency translation, while currency-neutral comparable net sales decreased modestly, due principally to lower sales in the U.K., where the Company continues to face a challenging environment. This more than offset continued growth in emerging markets, such as Russia and the Middle East. Operating profit declined on a reported basis, due to increased restructuring costs and adverse currency translation, but currency-neutral comparable-basis operating profit and profit margins grew strongly in the quarter. |
• | In Latin America, reported net sales decreased due to adverse currency translation, while currency-neutral comparable net sales grew because of price-inflation in Venezuela, as well as by accelerated growth outside of Venezuela, led by double-digit growth in Pringles and improved cereal growth. On a reported and currency-neutral comparable basis, both with and without Venezuela, Latin America substantially improved its operating profit and operating-profit margin. |
• | Reported and currency-neutral comparable net sales in Asia Pacific increased, led by good growth across the region for Pringles. Asia Pacific increased its operating profit on a reported basis, reflecting lower restructuring and integration costs, but it declined modestly on a currency-neutral comparable basis, owing primarily to adverse country mix. |
• | Currency-neutral comparable net sales are expected to decline by about (2)% in 2017, owing primarily to the volume and price impact of exiting from DSD distribution in U.S. Snacks; the rest of the Company's business is expected to be flat to down (1)%, broadly in line with its categories, and improving from recent years' performance. |
• | Guidance is unchanged for currency-neutral comparable operating profit, which the Company still believes will grow 7-9% year on year. The exit from DSD is expected to be neutral to operating profit, as overhead savings later in the year offset the negative net sales impact. Operating profit margin is expected to improve by more than a full percentage point, keeping the Company well on track toward its goal of 350 basis points of expansion from 2015 through 2018. |
• | The Company introduced 2017 guidance for earnings per share on a currency-neutral comparable basis. Specifically, it expects to generate growth of 8-10% off a 2016 base that excludes $0.02 from deconsolidated Venezuela results, to $4.03-$4.09. The growth should be driven by the aforementioned 7-9% growth in operating profit, with roughly 1% of additional leverage from modestly lower shares outstanding and other items, which slightly more than offset a higher effective tax rate and flat interest expense. |
• | This earnings per share guidance excludes an estimated $(0.12) per share of currency translation impact. Including this impact, comparable-basis earnings per share are expected to be $3.91-3.97. |
• | Comparable-basis and currency-neutral comparable-basis earnings per share guidance by definition excludes up-front costs of about $(0.80)-(0.90) per share, or $(400)-(450) million pretax, related to the Project K program, which has been expanded to include the DSD exit and other restructuring initiatives, and whose savings now extend through 2019. Finally, the EPS guidance excludes $(0.01)-(0.03) per share of integration costs, related to the Company's recent acquisition in Brazil, as well as previous acquisitions. Excluding these integration costs, the Brazil acquisition is expected to be neutral to currency-neutral comparable earnings per share. |
• | The Company also introduced guidance for 2017 cash flow. Specifically, it forecasts cash from operating activities should be approximately $1.6-1.7 billion, which after capital expenditure translates into cash flow of $1.1-1.2 billion. The latter would be an increase over 2016's $1.1 billion, as higher earnings and continued trimming of working capital and capital expenditure more than cover increased cash outlays related to Project K restructuring programs. |
• | 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, costs associated with the early redemption of debt outstanding, and charges associated with the Venezuela deconsolidation. We excluded the items which we believe may obscure trends in the company's underlying profitability. The impact of acquisitions are not excluded from comparable diluted EPS. 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 profitability, such as Project K, ZBB and Revenue Growth Management, as well as to evaluate the |
• | Comparable effective tax rate: We adjust the GAAP financial measure to exclude tax effect of Project K and cost reduction activities, integration costs, mark-to-market adjustments for pension plans, commodities and certain foreign currency contracts, charges associated with the Venezuela deconsolidation, 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 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 - 2017 Full Year Guidance* | |||
Net Sales | Operating Profit | EPS | |
Currency-Neutral Comparable Guidance | (2.0%) | 7.0% - 9.0% | $4.03 - $4.09 |
Foreign currency impact | (2.0)% | (2.4)% | ($.12) |
Comparable Guidance | (4.0%) | 4.6% - 6.6% | $3.91 - $3.97 |
Impact of certain items that are excluded from Non-GAAP guidance: | |||
Project K and cost reduction activities | — | (2.8%) - (6.3%) | ($1.28) - ($1.14) |
Integration costs | — | (0.1%) - 0.3% | ($.04) - ($.02) |
Acquisitions/dispositions | 1.4% | 1.0% | $.08 |
Income tax benefit applicable to adjustments, net** | $.37 - $.33 |
Reconciliation of Non-GAAP amounts - Cash Flow Guidance | |
(millions) | |
Approximate | |
Full Year 2017 | |
Net cash provided by (used in) operating activities | $1,600 - $1,700 |
Additions to properties | ($500) |
Cash Flow | $1,100 - $1,200 |
Quarter ended | Year ended | |||||||||||||||
(Results are unaudited) | December 31, 2016 | January 2, 2016 | December 31, 2016 | January 2, 2016 | ||||||||||||
Net sales | $ | 3,097 | $ | 3,142 | $ | 13,014 | $ | 13,525 | ||||||||
Cost of goods sold | 2,121 | 2,180 | 8,259 | 8,844 | ||||||||||||
Selling, general and administrative expense | 878 | 1,001 | 3,360 | 3,590 | ||||||||||||
Operating profit | 98 | (39 | ) | 1,395 | 1,091 | |||||||||||
Interest expense | 63 | 59 | 406 | 227 | ||||||||||||
Other income (expense), net | (69 | ) | (13 | ) | (62 | ) | (91 | ) | ||||||||
Income before income taxes | (34 | ) | (111 | ) | 927 | 773 | ||||||||||
Income taxes | 18 | (68 | ) | 233 | 159 | |||||||||||
Earnings (loss) from unconsolidated affiliates | — | 3 | 1 | — | ||||||||||||
Net income | $ | (52 | ) | $ | (40 | ) | $ | 695 | $ | 614 | ||||||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 1 | — | ||||||||||||
Net income attributable to Kellogg Company | $ | (53 | ) | $ | (41 | ) | $ | 694 | $ | 614 | ||||||
Per share amounts: | ||||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.12 | ) | $ | 1.98 | $ | 1.74 | ||||||
Diluted | $ | (0.15 | ) | $ | (0.12 | ) | $ | 1.96 | $ | 1.72 | ||||||
Dividends per share | $ | 0.52 | $ | 0.50 | $ | 2.04 | $ | 1.98 | ||||||||
Average shares outstanding: | ||||||||||||||||
Basic | 351 | 353 | 350 | 354 | ||||||||||||
Diluted | 351 | 353 | 354 | 356 | ||||||||||||
Actual shares outstanding at period end | 351 | 350 |
Year ended | ||||||||
(unaudited) | December 31, 2016 | January 2, 2016 | ||||||
Operating activities | ||||||||
Net income | $ | 694 | $ | 614 | ||||
Adjustments to reconcile net income to operating cash flows: | ||||||||
Depreciation and amortization | 517 | 534 | ||||||
Postretirement benefit plan expense | 198 | 320 | ||||||
Deferred income taxes | (44 | ) | (169 | ) | ||||
Stock compensation | 63 | 51 | ||||||
Venezuela deconsolidation | 72 | — | ||||||
Venezuela remeasurement | 11 | 169 | ||||||
VIE deconsolidation | — | (49 | ) | |||||
Other | (73 | ) | (13 | ) | ||||
Postretirement benefit plan contributions | (33 | ) | (33 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions | 223 | 267 | ||||||
Net cash provided by (used in) operating activities | 1,628 | 1,691 | ||||||
Investing activities | ||||||||
Additions to properties | (507 | ) | (553 | ) | ||||
Acquisitions, net of cash acquired | (398 | ) | (161 | ) | ||||
Reduction of cash due to Venezuela deconsolidation | (2 | ) | — | |||||
Investments in unconsolidated entities | 27 | (456 | ) | |||||
Other | (13 | ) | 43 | |||||
Net cash provided by (used in) investing activities | (893 | ) | (1,127 | ) | ||||
Financing activities | ||||||||
Net issuances (reductions) of notes payable | (788 | ) | 374 | |||||
Issuances of long-term debt | 2,657 | 696 | ||||||
Reductions of long-term debt | (1,737 | ) | (606 | ) | ||||
Net issuances of common stock | 368 | 261 | ||||||
Common stock repurchases | (426 | ) | (731 | ) | ||||
Cash dividends | (716 | ) | (700 | ) | ||||
Net cash provided by (used in) financing activities | (642 | ) | (706 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (64 | ) | (50 | ) | ||||
Increase (decrease) in cash and cash equivalents | 29 | (192 | ) | |||||
Cash and cash equivalents at beginning of period | 251 | 443 | ||||||
Cash and cash equivalents at end of period | 280 | $ | 251 | |||||
Supplemental financial data: | ||||||||
Net cash provided by (used in) operating activities | $ | 1,628 | $ | 1,691 | ||||
Additions to properties | (507 | ) | (553 | ) | ||||
Cash Flow (operating cash flow less property additions) (a) | $ | 1,121 | $ | 1,138 |
(a) | We use this non-GAAP measure of cash flow to focus management and investors on the amount of cash available for debt reduction, dividend distributions, acquisition opportunities, and share repurchase. |
December 31, 2016 | January 2, 2016 | |||||||
(unaudited) | * | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 280 | $ | 251 | ||||
Accounts receivable, net | 1,231 | 1,344 | ||||||
Inventories: | ||||||||
Raw materials and supplies | 315 | 315 | ||||||
Finished goods and materials in process | 923 | 935 | ||||||
Deferred income taxes | — | 227 | ||||||
Other prepaid assets | 191 | 164 | ||||||
Total current assets | 2,940 | 3,236 | ||||||
Property, net of accumulated depreciation of $5,280 and $5,236 | 3,569 | 3,621 | ||||||
Goodwill | 5,166 | 4,968 | ||||||
Other intangibles, net of accumulated amortization of $54 and $47 | 2,369 | 2,268 | ||||||
Investments in unconsolidated entities | 438 | 456 | ||||||
Pension | 66 | 231 | ||||||
Other assets | 563 | 471 | ||||||
Total assets | $ | 15,111 | $ | 15,251 | ||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 631 | $ | 1,266 | ||||
Notes payable | 438 | 1,204 | ||||||
Accounts payable | 2,014 | 1,907 | ||||||
Accrued advertising and promotion | 436 | 447 | ||||||
Accrued income taxes | 47 | 42 | ||||||
Accrued salaries and wages | 318 | 325 | ||||||
Other current liabilities | 590 | 548 | ||||||
Total current liabilities | 4,474 | 5,739 | ||||||
Long-term debt | 6,698 | 5,275 | ||||||
Deferred income taxes | 525 | 685 | ||||||
Pension liability | 1,024 | 946 | ||||||
Nonpension postretirement benefits | 40 | 77 | ||||||
Other liabilities | 424 | 391 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Common stock, $.25 par value | 105 | 105 | ||||||
Capital in excess of par value | 807 | 745 | ||||||
Retained earnings | 6,571 | 6,597 | ||||||
Treasury stock, at cost | (3,997 | ) | (3,943 | ) | ||||
Accumulated other comprehensive income (loss) | (1,575 | ) | (1,376 | ) | ||||
Total Kellogg Company equity | 1,911 | 2,128 | ||||||
Noncontrolling interests | 15 | 10 | ||||||
Total equity | 1,926 | 2,138 | ||||||
Total liabilities and equity | $ | 15,111 | $ | 15,251 |
Quarter ended December 31, 2016 | Year ended December 31, 2016 | ||||||||||||||||||||||||
(Results are unaudited) | Net sales | Cost of goods sold | Selling, general and administrative expense | Operating profit | Net sales | Cost of goods sold | Selling, general and administrative expense | Operating profit | |||||||||||||||||
Mark-to-market | $ | — | $ | 147 | $ | 79 | $ | (226 | ) | $ | — | $ | 159 | $ | 102 | $ | (261 | ) | |||||||
Project K and cost reduction activities | — | 107 | 54 | $ | (161 | ) | — | 173 | 152 | $ | (325 | ) | |||||||||||||
Other costs impacting comparability | — | — | — | $ | — | — | — | — | $ | — | |||||||||||||||
Integration and transaction costs | — | 1 | 6 | $ | (7 | ) | — | 2 | 8 | $ | (10 | ) | |||||||||||||
Acquisitions/divestitures | 4 | 4 | 2 | $ | (2 | ) | 31 | 22 | 8 | $ | 1 | ||||||||||||||
Shipping day differences | — | — | — | $ | — | — | — | — | $ | — | |||||||||||||||
Venezuela remeasurement | — | — | — | $ | — | — | 12 | 1 | $ | (13 | ) | ||||||||||||||
Foreign currency impact | (80 | ) | (49 | ) | (13 | ) | $ | (18 | ) | (1,073 | ) | (696 | ) | (99 | ) | $ | (278 | ) | |||||||
Comparable adjustments | $ | (76 | ) | $ | 210 | $ | 128 | $ | (414 | ) | $ | (1,042 | ) | $ | (328 | ) | $ | 172 | $ | (886 | ) | ||||
Quarter ended January 2, 2016 | Year ended January 2, 2016 | ||||||||||||||||||||||||
(Results are unaudited) | Net sales | Cost of goods sold | Selling, general and administrative expense | Operating profit | Net sales | Cost of goods sold | Selling, general and administrative expense | Operating profit | |||||||||||||||||
Mark-to-market | $ | — | $ | 236 | $ | 151 | $ | (387 | ) | $ | — | $ | 296 | $ | 150 | $ | (446 | ) | |||||||
Project K and cost reduction activities | — | 37 | 43 | $ | (80 | ) | (4 | ) | 191 | 128 | $ | (323 | ) | ||||||||||||
Other costs impacting comparability | — | — | — | $ | — | — | — | (67 | ) | $ | 67 | ||||||||||||||
Integration and transaction costs | — | 3 | 5 | $ | (8 | ) | (1 | ) | 14 | 15 | $ | (30 | ) | ||||||||||||
Acquisitions/divestitures | 3 | 2 | 1 | $ | — | 14 | 9 | 1 | $ | 4 | |||||||||||||||
Shipping day differences | — | — | — | $ | — | (3 | ) | (3 | ) | — | $ | — | |||||||||||||
Venezuela remeasurement | — | 2 | 2 | $ | (4 | ) | — | 112 | 8 | $ | (120 | ) | |||||||||||||
Comparable adjustments | $ | 3 | $ | 280 | $ | 202 | $ | (479 | ) | $ | 6 | $ | 619 | $ | 235 | $ | (848 | ) |
Quarter ended December 31, 2016 | Year ended December 31, 2016 | ||||||||||||||||||||||||
(Results are unaudited) | Interest expense | Income taxes | Net income (loss) attributable to Kellogg Company | Per share amount: Diluted | Interest expense | Income taxes | Net income (loss) attributable to Kellogg Company | Per share amount: Diluted | |||||||||||||||||
Mark-to-market | $ | — | $ | — | $ | (226 | ) | $ | (0.64 | ) | $ | — | $ | — | $ | (261 | ) | $ | (0.74 | ) | |||||
Project K and cost reduction activities | — | — | (161 | ) | $ | (0.46 | ) | — | — | (325 | ) | $ | (0.92 | ) | |||||||||||
Other costs impacting comparability | — | — | — | $ | — | 153 | — | (153 | ) | $ | (0.43 | ) | |||||||||||||
Integration and transaction costs | — | — | (10 | ) | $ | (0.02 | ) | — | — | (11 | ) | $ | (0.03 | ) | |||||||||||
Venezuela deconsolidation | — | — | (72 | ) | $ | (0.20 | ) | — | — | (72 | ) | $ | (0.20 | ) | |||||||||||
Venezuela remeasurement | — | — | — | $ | — | — | — | (11 | ) | $ | (0.03 | ) | |||||||||||||
Income tax benefit applicable to adjustments, net | — | (92 | ) | 92 | $ | 0.25 | — | (201 | ) | 201 | $ | 0.57 | |||||||||||||
Foreign currency impact | (1 | ) | 1 | (24 | ) | $ | (0.07 | ) | (10 | ) | (69 | ) | (203 | ) | $ | (0.57 | ) | ||||||||
Comparable adjustments | $ | (1 | ) | $ | (91 | ) | $ | (401 | ) | $ | (1.14 | ) | $ | 143 | $ | (270 | ) | $ | (835 | ) | $ | (2.35 | ) | ||
Quarter ended January 2, 2016 | Year ended January 2, 2016 | ||||||||||||||||||||||||
(Results are unaudited) | Interest expense | Income taxes | Net income (loss) attributable to Kellogg Company | Per share amount: Diluted | Interest expense | Income taxes | Net income (loss) attributable to Kellogg Company | Per share amount: Diluted | |||||||||||||||||
Mark-to-market | $ | — | $ | — | $ | (387 | ) | $ | (1.10 | ) | $ | — | $ | — | $ | (446 | ) | $ | (1.25 | ) | |||||
Project K and cost reduction activities | — | — | (80 | ) | (0.22 | ) | — | — | (323 | ) | (0.91 | ) | |||||||||||||
Other costs impacting comparability | — | — | — | — | — | — | 48 | 0.13 | |||||||||||||||||
Integration and transaction costs | — | — | (7 | ) | (0.02 | ) | — | — | (26 | ) | (0.08 | ) | |||||||||||||
Venezuela deconsolidation | — | — | — | — | — | — | — | — | |||||||||||||||||
Venezuela remeasurement | — | — | (4 | ) | (0.01 | ) | — | — | (169 | ) | (0.47 | ) | |||||||||||||
Income tax benefit applicable to adjustments, net | — | (158 | ) | 158 | 0.44 | — | (273 | ) | 273 | 0.77 | |||||||||||||||
Comparable adjustments | $ | — | $ | (158 | ) | $ | (320 | ) | $ | (0.91 | ) | $ | — | $ | (273 | ) | $ | (643 | ) | $ | (1.81 | ) |
Quarter ended December 31, 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 | $ | 704 | $ | 767 | $ | 283 | $ | 376 | $ | 2,130 | $ | 556 | $ | 187 | $ | 224 | $ | — | $ | 3,097 | ||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | 1 | 1 | 3 | — | — | — | 4 | ||||||||||||||||||||||||||||||
Comparable net sales | $ | 704 | $ | 767 | $ | 283 | $ | 375 | $ | 2,129 | $ | 553 | $ | 187 | $ | 224 | $ | — | $ | 3,093 | ||||||||||||||||||||
Comparable net sales excluding Venezuela | $ | 179 | $ | 3,085 | ||||||||||||||||||||||||||||||||||||
Foreign currency impact | — | — | — | — | — | (52 | ) | (33 | ) | 5 | — | (80 | ) | |||||||||||||||||||||||||||
Currency-neutral comparable net sales | $ | 704 | $ | 767 | $ | 283 | $ | 375 | $ | 2,129 | $ | 605 | $ | 220 | $ | 219 | $ | — | $ | 3,173 | ||||||||||||||||||||
Currency-neutral comparable net sales excluding Venezuela | $ | 194 | $ | 3,147 | ||||||||||||||||||||||||||||||||||||
Quarter ended January 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 | $ | 712 | $ | 750 | $ | 269 | $ | 389 | $ | 2,120 | $ | 612 | $ | 190 | $ | 220 | $ | — | $ | 3,142 | ||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | — | — | — | — | 3 | — | 3 | ||||||||||||||||||||||||||||||
Comparable net sales | $ | 712 | $ | 750 | $ | 269 | $ | 389 | $ | 2,120 | $ | 612 | $ | 190 | $ | 217 | $ | — | $ | 3,139 | ||||||||||||||||||||
Comparable net sales excluding Venezuela | $ | 183 | $ | 3,132 | ||||||||||||||||||||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
As reported | (1.1 | )% | 2.3 | % | 5.1 | % | (3.4 | )% | 0.5 | % | (9.1 | )% | (1.6 | )% | 1.8 | % | — | % | (1.4 | )% | ||||||||||||||||||||
Integration and transaction costs | — | % | — | % | — | % | — | % | — | % | — | % | — | % | 0.2 | % | — | % | — | % | ||||||||||||||||||||
Acquisitions/divestitures | — | % | — | % | — | % | 0.2 | % | — | % | 0.5 | % | — | % | (1.7 | )% | — | % | — | % | ||||||||||||||||||||
Comparable growth | (1.1 | )% | 2.3 | % | 5.1 | % | (3.6 | )% | 0.5 | % | (9.6 | )% | (1.6 | )% | 3.3 | % | — | % | (1.4 | )% | ||||||||||||||||||||
Comparable growth excluding Venezuela | (2.5 | )% | (1.5 | )% | ||||||||||||||||||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | — | % | 0.1 | % | (8.5 | )% | (16.9 | )% | 2.1 | % | — | % | (2.5 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | (1.1 | )% | 2.3 | % | 5.1 | % | (3.6 | )% | 0.4 | % | (1.1 | )% | 15.3 | % | 1.2 | % | — | % | 1.1 | % | ||||||||||||||||||||
Currency-neutral comparable growth excluding Venezuela | 5.0 | % | 0.5 | % | ||||||||||||||||||||||||||||||||||||
Volume (tonnage) | 0.5 | % | 0.6 | % | (2.9 | )% | 2.6 | % | — | % | 0.4 | % | ||||||||||||||||||||||||||||
Pricing/mix | (0.1 | )% | (1.7 | )% | 18.2 | % | (1.4 | )% | — | % | 0.7 | % |
Year ended December 31, 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 | $ | 2,931 | $ | 3,198 | $ | 1,214 | $ | 1,598 | $ | 8,941 | $ | 2,377 | $ | 780 | $ | 916 | $ | — | $ | 13,014 | ||||||||||||||||||||
Project K and cost reduction activities | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | 3 | 3 | 28 | — | — | — | 31 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Comparable net sales | $ | 2,931 | $ | 3,198 | $ | 1,214 | $ | 1,595 | $ | 8,938 | $ | 2,349 | $ | 780 | $ | 916 | $ | — | $ | 12,983 | ||||||||||||||||||||
Comparable net sales excluding Venezuela | $ | 749 | $ | 12,952 | ||||||||||||||||||||||||||||||||||||
Foreign currency impact | — | — | — | (14 | ) | (14 | ) | (132 | ) | (922 | ) | (5 | ) | — | (1,073 | ) | ||||||||||||||||||||||||
Currency-neutral comparable net sales | $ | 2,931 | $ | 3,198 | $ | 1,214 | $ | 1,609 | $ | 8,952 | $ | 2,481 | $ | 1,702 | $ | 921 | $ | — | $ | 14,056 | ||||||||||||||||||||
Currency-neutral comparable net sales excluding Venezuela | $ | 824 | $ | 13,178 | ||||||||||||||||||||||||||||||||||||
Year ended January 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 | $ | 2,992 | $ | 3,234 | $ | 1,181 | $ | 1,687 | $ | 9,094 | $ | 2,497 | $ | 1,015 | $ | 919 | $ | — | $ | 13,525 | ||||||||||||||||||||
Project K and cost reduction activities | — | — | — | (2 | ) | (2 | ) | (2 | ) | — | — | — | (4 | ) | ||||||||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | — | — | — | — | 14 | — | 14 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | (3 | ) | — | — | — | (3 | ) | ||||||||||||||||||||||||||||
Comparable net sales | $ | 2,992 | $ | 3,234 | $ | 1,181 | $ | 1,689 | $ | 9,096 | $ | 2,502 | $ | 1,015 | $ | 906 | $ | — | $ | 13,519 | ||||||||||||||||||||
Comparable net sales excluding Venezuela | $ | 818 | $ | 13,322 | ||||||||||||||||||||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
As reported | (2.0 | )% | (1.1 | )% | 2.8 | % | (5.3 | )% | (1.7 | )% | (4.8 | )% | (23.1 | )% | (0.4 | )% | — | % | (3.8 | )% | ||||||||||||||||||||
Project K and cost reduction activities | — | % | — | % | — | % | 0.1 | % | — | % | 0.1 | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Integration and transaction costs | — | % | — | % | — | % | — | % | — | % | — | % | — | % | 0.2 | % | — | % | — | % | ||||||||||||||||||||
Acquisitions/divestitures | — | % | — | % | — | % | 0.2 | % | — | % | 1.1 | % | — | % | (1.6 | )% | — | % | 0.1 | % | ||||||||||||||||||||
Differences in shipping days | — | % | — | % | — | % | — | % | — | % | 0.1 | % | — | % | — | % | — | % | 0.1 | % | ||||||||||||||||||||
Comparable growth | (2.0 | )% | (1.1 | )% | 2.8 | % | (5.6 | )% | (1.7 | )% | (6.1 | )% | (23.1 | )% | 1.0 | % | — | % | (4.0 | )% | ||||||||||||||||||||
Comparable growth excluding Venezuela | (8.4 | )% | (2.8 | )% | ||||||||||||||||||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | (0.9 | )% | (0.1 | )% | (5.3 | )% | (90.8 | )% | (0.6 | )% | — | % | (8.0 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | (2.0 | )% | (1.1 | )% | 2.8 | % | (4.7 | )% | (1.6 | )% | (0.8 | )% | 67.7 | % | 1.6 | % | — | % | 4.0 | % | ||||||||||||||||||||
Currency-neutral comparable growth excluding Venezuela | 0.7 | % | (1.1 | )% | ||||||||||||||||||||||||||||||||||||
Volume (tonnage) | (1.3 | )% | 0.2 | % | (4.0 | )% | 2.5 | % | — | % | (0.9 | )% | ||||||||||||||||||||||||||||
Pricing/mix | (0.3 | )% | (1.0 | )% | 71.7 | % | (0.9 | )% | — | % | 4.9 | % |
Quarter ended December 31, 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 | $ | 136 | $ | 94 | $ | 65 | $ | 46 | $ | 341 | $ | (11 | ) | $ | 14 | $ | 20 | $ | (266 | ) | $ | 98 | ||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | (226 | ) | (226 | ) | ||||||||||||||||||||||||||||
Project K and cost reduction activities | (10 | ) | (14 | ) | (4 | ) | (18 | ) | (46 | ) | (92 | ) | (2 | ) | (1 | ) | (20 | ) | (161 | ) | ||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | (1 | ) | (3 | ) | (3 | ) | — | (7 | ) | ||||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | (1 | ) | (1 | ) | (1 | ) | — | — | — | (2 | ) | ||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Comparable | $ | 146 | $ | 108 | $ | 69 | $ | 65 | $ | 388 | $ | 83 | $ | 19 | $ | 24 | $ | (20 | ) | $ | 494 | |||||||||||||||||||
Comparable excluding Venezuela | $ | 18 | $ | (20 | ) | $ | 493 | |||||||||||||||||||||||||||||||||
Foreign currency impact | — | — | — | — | — | (13 | ) | (4 | ) | — | (1 | ) | (18 | ) | ||||||||||||||||||||||||||
Currency-neutral comparable | $ | 146 | $ | 108 | $ | 69 | $ | 65 | $ | 388 | $ | 96 | $ | 23 | $ | 24 | $ | (19 | ) | $ | 512 | |||||||||||||||||||
Currency-neutral comparable excluding Venezuela | $ | 19 | $ | (18 | ) | $ | 509 | |||||||||||||||||||||||||||||||||
Quarter ended January 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 | $ | 106 | $ | 83 | $ | 60 | $ | 38 | $ | 287 | $ | 56 | $ | 7 | $ | 18 | $ | (407 | ) | $ | (39 | ) | ||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | (387 | ) | (387 | ) | ||||||||||||||||||||||||||||
Project K and cost reduction activities | (7 | ) | (16 | ) | (2 | ) | (23 | ) | (48 | ) | (18 | ) | (2 | ) | (3 | ) | (9 | ) | (80 | ) | ||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | (3 | ) | (1 | ) | (4 | ) | — | (8 | ) | ||||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||||||||||||||
Comparable | $ | 113 | $ | 99 | $ | 62 | $ | 61 | $ | 335 | $ | 77 | $ | 14 | $ | 25 | $ | (11 | ) | $ | 440 | |||||||||||||||||||
Comparable excluding Venezuela | $ | 13 | $ | (11 | ) | $ | 439 | |||||||||||||||||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
As Reported | 27.4 | % | 12.7 | % | 9.2 | % | 24.1 | % | 18.9 | % | (119.4 | )% | 121.1 | % | 7.8 | % | 34.4 | % | 353.5 | % | ||||||||||||||||||||
Mark-to-market | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | 134.7 | % | 360.5 | % | ||||||||||||||||||||
Project K and cost reduction activities | (1.1 | )% | 3.9 | % | (3.4 | )% | 17.3 | % | 3.1 | % | (129.7 | )% | 43.2 | % | 10.0 | % | (13.5 | )% | (20.4 | )% | ||||||||||||||||||||
Integration and transaction costs | — | % | — | % | — | % | (0.4 | )% | (0.1 | )% | 2.4 | % | 0.7 | % | 2.6 | % | 1.2 | % | 0.5 | % | ||||||||||||||||||||
Acquisitions/divestitures | — | % | — | % | — | % | (2.0 | )% | (0.4 | )% | (0.4 | )% | — | % | (3.8 | )% | — | % | (0.6 | )% | ||||||||||||||||||||
Venezuela remeasurement | — | % | — | % | — | % | — | % | — | % | — | % | 50.2 | % | — | % | — | % | 1.1 | % | ||||||||||||||||||||
Comparable growth | 28.5 | % | 8.8 | % | 12.6 | % | 9.2 | % | 16.3 | % | 8.3 | % | 27.0 | % | (1.0 | )% | (88.0 | )% | 12.4 | % | ||||||||||||||||||||
Comparable growth excluding Venezuela | 26.6 | % | (88.9 | )% | 12.3 | % | ||||||||||||||||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | — | % | — | % | (16.1 | )% | (25.9 | )% | 2.6 | % | (26.9 | )% | (4.3 | )% | ||||||||||||||||||||
Currency-Neutral Comparable growth | 28.5 | % | 8.8 | % | 12.6 | % | 9.2 | % | 16.3 | % | 24.4 | % | 52.9 | % | (3.6 | )% | (61.1 | )% | 16.7 | % | ||||||||||||||||||||
Currency-neutral comparable growth excluding Venezuela | 34.6 | % | (60.8 | )% | 16.0 | % |
Year ended December 31, 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 | $ | 593 | $ | 324 | $ | 279 | $ | 181 | $ | 1,377 | $ | 205 | $ | 84 | $ | 70 | $ | (341 | ) | $ | 1,395 | |||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | (261 | ) | (261 | ) | ||||||||||||||||||||||||||||
Project K and cost reduction activities | (23 | ) | (76 | ) | (8 | ) | (38 | ) | (145 | ) | (126 | ) | (8 | ) | (7 | ) | (39 | ) | (325 | ) | ||||||||||||||||||||
Other costs impacting comparability | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | (3 | ) | (2 | ) | (3 | ) | (2 | ) | (10 | ) | |||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | (1 | ) | (1 | ) | 2 | — | — | — | 1 | ||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (13 | ) | — | — | (13 | ) | ||||||||||||||||||||||||||||
Comparable | $ | 616 | $ | 400 | $ | 287 | $ | 220 | $ | 1,523 | $ | 332 | $ | 107 | $ | 80 | $ | (39 | ) | $ | 2,003 | |||||||||||||||||||
Comparable excluding Venezuela | $ | 98 | $ | (39 | ) | $ | 1,994 | |||||||||||||||||||||||||||||||||
Foreign currency impact | — | — | — | (2 | ) | (2 | ) | (30 | ) | (250 | ) | 2 | 2 | (278 | ) | |||||||||||||||||||||||||
Currency-neutral comparable | $ | 616 | $ | 400 | $ | 287 | $ | 222 | $ | 1,525 | $ | 362 | $ | 357 | $ | 78 | $ | (41 | ) | $ | 2,281 | |||||||||||||||||||
Currency-neutral comparable excluding Venezuela | $ | 106 | $ | (31 | ) | $ | 2,040 | |||||||||||||||||||||||||||||||||
Year ended January 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 | $ | 474 | $ | 385 | $ | 260 | $ | 178 | $ | 1,297 | $ | 247 | $ | 9 | $ | 54 | $ | (516 | ) | $ | 1,091 | |||||||||||||||||||
Mark-to-market | — | — | — | — | — | — | — | — | (446 | ) | (446 | ) | ||||||||||||||||||||||||||||
Project K and cost reduction activities | (58 | ) | (50 | ) | (5 | ) | (63 | ) | (176 | ) | (74 | ) | (4 | ) | (13 | ) | (56 | ) | (323 | ) | ||||||||||||||||||||
Other costs impacting comparability | — | 67 | — | — | 67 | — | — | — | — | 67 | ||||||||||||||||||||||||||||||
Integration and transaction costs | — | — | — | — | — | (11 | ) | (3 | ) | (14 | ) | (2 | ) | (30 | ) | |||||||||||||||||||||||||
Acquisitions/divestitures | — | — | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Venezuela remeasurement | — | — | — | — | — | — | (119 | ) | — | (1 | ) | (120 | ) | |||||||||||||||||||||||||||
Comparable | $ | 532 | $ | 368 | $ | 265 | $ | 241 | $ | 1,406 | $ | 332 | $ | 135 | $ | 77 | $ | (11 | ) | $ | 1,939 | |||||||||||||||||||
Comparable excluding Venezuela | $ | 103 | $ | (6 | ) | $ | 1,912 | |||||||||||||||||||||||||||||||||
% change - 2016 vs. 2015: | ||||||||||||||||||||||||||||||||||||||||
As reported | 25.0 | % | (15.8 | )% | 7.4 | % | 1.9 | % | 6.2 | % | (16.9 | )% | 855.2 | % | 28.9 | % | 33.8 | % | 27.8 | % | ||||||||||||||||||||
Mark-to-market | — | % | — | % | — | % | — | % | — | % | — | % | — | % | — | % | 48.9 | % | 20.1 | % | ||||||||||||||||||||
Project K and cost reduction activities | 9.3 | % | (7.7 | )% | (1.4 | )% | 11.0 | % | 2.8 | % | (20.3 | )% | 252.8 | % | 14.9 | % | 188.5 | % | 1.2 | % | ||||||||||||||||||||
Other costs impacting comparability | — | % | (16.6 | )% | — | % | — | % | (4.9 | )% | — | % | — | % | — | % | — | % | (4.0 | )% | ||||||||||||||||||||
Integration and transaction costs | — | % | — | % | — | % | (0.1 | )% | — | % | 2.5 | % | 95.2 | % | 15.1 | % | 46.1 | % | 1.3 | % | ||||||||||||||||||||
Acquisitions/divestitures | — | % | — | % | — | % | (0.6 | )% | (0.1 | )% | 0.8 | % | — | % | (6.8 | )% | — | % | (0.3 | )% | ||||||||||||||||||||
Differences in shipping days | — | % | — | % | — | % | — | % | — | % | 0.2 | % | — | % | — | % | — | % | 0.1 | % | ||||||||||||||||||||
Venezuela remeasurement | — | % | — | % | — | % | — | % | — | % | — | % | 527.9 | % | — | % | 31.6 | % | 6.1 | % | ||||||||||||||||||||
Comparable growth | 15.7 | % | 8.5 | % | 8.8 | % | (8.4 | )% | 8.4 | % | (0.1 | )% | (20.7 | )% | 5.7 | % | (281.3 | )% | 3.3 | % | ||||||||||||||||||||
Comparable growth excluding Venezuela | (5.9 | )% | (573.4 | )% | 4.3 | % | ||||||||||||||||||||||||||||||||||
Foreign currency impact | — | % | — | % | — | % | (0.9 | )% | (0.1 | )% | (9.0 | )% | (185.6 | )% | 3.8 | % | 13.2 | % | (14.4 | )% | ||||||||||||||||||||
Currency-neutral comparable growth | 15.7 | % | 8.5 | % | 8.8 | % | (7.5 | )% | 8.5 | % | 8.9 | % | 164.9 | % | 1.9 | % | (294.5 | )% | 17.7 | % | ||||||||||||||||||||
Currency-neutral growth excluding Venezuela | 2.5 | % | (429.9 | )% | 6.7 | % |
Quarter ended | Year ended | |||||||||||
December 31, 2016 | January 2, 2016 | December 31, 2016 | January 2, 2016 | |||||||||
Reported Effective Tax Rate | (54.7 | )% | 60.7 | % | 25.2 | % | 20.6 | % | ||||
Mark-to-market | (89.8 | )% | 38.0 | % | 0.5 | % | (4.6 | )% | ||||
Project K and cost reduction activities | 4.3 | % | (1.8 | )% | (0.3 | )% | (0.8 | )% | ||||
Other costs impacting comparability | — | % | — | % | (0.9 | )% | (0.9 | )% | ||||
Integration and transaction costs | 0.1 | % | (0.5 | )% | — | % | (0.2 | )% | ||||
Venezuela deconsolidation | 5.1 | % | — | % | 1.0 | % | — | % | ||||
Venezuela remeasurement | — | % | 0.3 | % | 0.2 | % | 1.5 | % | ||||
Comparable Effective Tax Rate | 25.6 | % | 24.7 | % | 24.7 | % | 25.6 | % |
Quarter ended | Year-to-date period ended | |||||||||||||||||||||
Net sales | April 2, 2016 | July 2, 2016 | October 1, 2016 | December 31, 2016 | July 2, 2016 | October 1, 2016 | December 31, 2016 | |||||||||||||||
As reported | $ | 3,395 | $ | 3,268 | $ | 3,254 | $ | 3,097 | $ | 6,663 | $ | 9,917 | $ | 13,014 | ||||||||
Acquisitions | 15 | 5 | 7 | 4 | 20 | 27 | 31 | |||||||||||||||
Comparable originally reported | $ | 3,380 | $ | 3,263 | $ | 3,247 | $ | 3,093 | $ | 6,643 | $ | 9,890 | $ | 12,983 | ||||||||
Venezuela* | (9 | ) | (7 | ) | (7 | ) | (8 | ) | (16 | ) | (23 | ) | (31 | ) | ||||||||
Acquisitions | 15 | 5 | 7 | 4 | 20 | 27 | 31 | |||||||||||||||
Comparable recast for 2017 comparison | $ | 3,386 | $ | 3,261 | $ | 3,247 | $ | 3,089 | $ | 6,647 | $ | 9,894 | $ | 12,983 | ||||||||
Quarter ended | Year-to-date period ended | |||||||||||||||||||||
Operating profit | April 2, 2016 | July 2, 2016 | October 1, 2016 | December 31, 2016 | July 2, 2016 | October 1, 2016 | December 31, 2016 | |||||||||||||||
As reported | $ | 438 | $ | 449 | $ | 410 | $ | 98 | $ | 887 | $ | 1,297 | $ | 1,395 | ||||||||
Mark-to-market | (24 | ) | 20 | (31 | ) | (226 | ) | (4 | ) | (35 | ) | (261 | ) | |||||||||
Project K and cost reduction activities | (52 | ) | (72 | ) | (40 | ) | (161 | ) | (124 | ) | (164 | ) | (325 | ) | ||||||||
Integration and transaction costs | (1 | ) | — | (2 | ) | (7 | ) | (1 | ) | (3 | ) | (10 | ) | |||||||||
Acquisitions/divestitures | 1 | 1 | 1 | (2 | ) | 2 | 3 | 1 | ||||||||||||||
Venezuela remeasurement | (6 | ) | (7 | ) | — | — | (13 | ) | (13 | ) | (13 | ) | ||||||||||
Comparable originally reported | $ | 520 | $ | 507 | $ | 482 | $ | 494 | $ | 1,027 | $ | 1,509 | $ | 2,003 | ||||||||
Venezuela* | (5 | ) | — | (3 | ) | (1 | ) | (5 | ) | (8 | ) | (9 | ) | |||||||||
Acquisitions | 1 | 1 | 1 | (2 | ) | 2 | 3 | 1 | ||||||||||||||
Comparable recast for 2017 comparison | $ | 516 | $ | 508 | $ | 480 | $ | 491 | $ | 1,024 | $ | 1,504 | $ | 1,995 | ||||||||
Quarter ended | Year-to-date period ended | |||||||||||||||||||||
Diluted earnings per share | April 2, 2016 | July 2, 2016 | October 1, 2016 | December 31, 2016 | July 2, 2016 | October 1, 2016 | December 31, 2016 | |||||||||||||||
As reported | $ | 0.49 | $ | 0.79 | $ | 0.82 | $ | (0.15 | ) | $ | 1.29 | $ | 2.11 | $ | 1.96 | |||||||
Mark-to-market (pre-tax) | (0.07 | ) | 0.05 | (0.09 | ) | (0.64 | ) | (0.01 | ) | (0.10 | ) | (0.74 | ) | |||||||||
Project K and cost reduction activities (pre-tax) | (0.14 | ) | (0.20 | ) | (0.11 | ) | (0.46 | ) | (0.35 | ) | (0.46 | ) | (0.92 | ) | ||||||||
Other costs impacting comparability (pre-tax) | (0.43 | ) | — | — | — | (0.43 | ) | (0.43 | ) | (0.43 | ) | |||||||||||
Integration and transaction costs (pre-tax) | — | — | (0.01 | ) | (0.02 | ) | — | (0.01 | ) | (0.03 | ) | |||||||||||
Venezuela deconsolidation (pre-tax) | — | — | — | (0.20 | ) | — | — | (0.20 | ) | |||||||||||||
Venezuela remeasurement (pre-tax) | (0.02 | ) | (0.01 | ) | — | — | (0.03 | ) | (0.03 | ) | (0.03 | ) | ||||||||||
Income tax benefit applicable to adjustments, net** | 0.18 | 0.04 | 0.07 | 0.25 | 0.24 | 0.31 | 0.57 | |||||||||||||||
Comparable originally reported | $ | 0.97 | $ | 0.91 | $ | 0.96 | $ | 0.92 | $ | 1.87 | $ | 2.83 | $ | 3.74 | ||||||||
Venezuela* | (0.01 | ) | — | — | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | ||||||||||
Comparable recast for 2017 comparison | $ | 0.96 | $ | 0.91 | $ | 0.96 | $ | 0.91 | $ | 1.86 | $ | 2.82 | $ | 3.72 | ||||||||
Kellogg Company | |
Financial News Release | |
Analyst Contact: | |
John Renwick, CFA (269) 961-9050 | |
Media Contact: | |
Kris Charles, (269) 961-3799 | |
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