EQUITY

Earnings per share

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



(millions, except per share data)	Net income attributable to Kellogg Company		Average shares outstanding	Earnings per share
2018
Basic	$	1,336	347	$	3.85
Dilutive potential common shares			1	(0.02		)
Diluted	$	1,336	348	$	3.83
2017
Basic	$	1,254	348	$	3.61
Dilutive potential common shares			2	(0.03		)
Diluted	$	1,254	350	$	3.58
2016
Basic	$	699	350	$	1.99
Dilutive potential common shares			4	(0.02		)
Diluted	$	699	354	$	1.97

The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (shares in millions): 2018-6.5; 2017-4.9; 2016-2.8.

Stock transactions

The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 9. The number of shares issued during the periods presented was (shares in millions): 2018–8; 2017–7; 2016–7. The Company issued shares totaling less than one million in each of the years presented under Kellogg Direct^™, a direct stock purchase and dividend reinvestment plan for U.S. shareholders.

In December 2017, the board of directors approved a new authorization to repurchase up to $1.5 billion of the Company's common stock beginning in 2018 through December 2019.

During 2018, the Company repurchased 5 million shares of common stock for a total of $320 million . During 2017, the Company repurchased 7 million shares of common stock for a total of $516 million. During 2016, the Company repurchased 6 million shares of common stock at a total cost of $426 million.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income for all years presented consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience gains (losses) and prior service credit (cost) related to employee benefit plans. For the years ended December 30, 2017 and December 31, 2016, the Company modified assumptions for a U.S. postemployment benefit plan. As a result of the U.S. postemployment benefit plan assumption change, a net experience gain was recognized in other comprehensive income with an offsetting reduction in the accumulated postemployment benefit obligation. See Note 10 and Note 11 for further details.



	2018									2017								2016
	Pre-tax			Tax (expense)			After-tax			Pre-tax			Tax (expense)			After-tax		Pre-tax			Tax (expense)			After-tax
	amount			benefit			amount			amount			benefit			amount		amount			benefit			amount
Net income							$	1,344								$	1,254							$	700
Other comprehensive income:
Foreign currency translation adjustments	$	5		$	(53	)	(48		)	$	(34	)	$	113		$	79	$	(230	)	(24		)	(254		)
Cash flow hedges:
Unrealized gain (loss) on cash flow hedges	3			(1		)	2			—			—			—		(55		)	22			(33		)
Reclassification to net income	8			(2		)	6			9			(3		)	6		11			(6		)	5
Postretirement and postemployment benefits:
Amounts arising during the period:
Net experience gain (loss)	(8		)	1			(7		)	44			(12		)	32		25			(9		)	16
Prior service credit (cost)	1			—			1			—			—			—		(4		)	2			(2		)
Reclassification to net income:
Net experience (gain) loss	(5		)	1			(4		)	—			—			—		3			(1		)	2
Prior service (credit) cost	—			—			—			1			—			1		5			(1		)	4
Venezuela deconsolidation loss	—			—			—			—			—			—		63			—			63
Other comprehensive income (loss)	$	4		$	(54	)	$	(50	)	$	20		$	98		$	118	$	(182	)	$	(17	)	$	(199	)
Comprehensive income							$	1,294								$	1,372							$	501
Net income (loss) attributable to noncontrolling interests							8									—								1
Other comprehensive income (loss) attributable to noncontrolling interests							(7		)							—								—
Comprehensive income attributable to Kellogg Company							$	1,293								$	1,372							$	500

Reclassifications from Accumulated Other Comprehensive Income (AOCI) for the year ended December 29, 2018 and December 30, 2017, consisted of the following:



Details about AOCI Components	Amount reclassified from AOCI									Line item impacted within Income Statement
(millions)	2018			2017			2016
Gains and losses on cash flow hedges:
Foreign currency exchange contracts	$	—		$	(1	)	$	(14	)	COGS
Foreign currency exchange contracts	—			—			(1		)	SGA
Interest rate contracts	8			10			13			Interest expense
Commodity contracts	—			—			13			COGS
	$	8		$	9		$	11		Total before tax
	(2		)	(3		)	(6		)	Tax (expense) benefit
	$	6		$	6		$	5		Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	(5	)	$	—		$	3		OIE
Prior service cost	—			1			5			OIE
	$	(5	)	$	1		$	8		Total before tax
	1			—			(2		)	Tax (expense) benefit
	$	(4	)	$	1		$	6		Net of tax

Venezuela deconsolidation loss	$	—		$	—		$	63		Other (income) expense
Total reclassifications	$	2		$	7		$	74		Net of tax

Accumulated other comprehensive income (loss) as of December 29, 2018 and December 30, 2017 consisted of the following:



(millions)	December 29, 2018			December 30, 2017
Foreign currency translation adjustments	$	(1,467	)	$	(1,426	)
Cash flow hedges — unrealized net gain (loss)	(53		)	(61		)
Postretirement and postemployment benefits:
Net experience gain (loss)	23			34
Prior service credit (cost)	(3		)	(4		)
Total accumulated other comprehensive income (loss)	$	(1,500	)	$	(1,457	)