XML 31 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Reportable Segments
6 Months Ended
Jun. 27, 2020
Segment Reporting [Abstract]  
Reportable Segments Reportable segments
Kellogg Company is the world’s leading producer of cereal, second largest producer of crackers, and a leading producer of savory snacks and frozen foods. Additional product offerings include toaster pastries, cereal bars, veggie foods and noodles. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom, and Nigeria.
The Company manages its operations through four operating segments that are based on geographic location – North America which includes U.S. businesses and Canada; Europe which consists principally of European countries; Latin America which consists of Central and South America and includes Mexico; and AMEA (Asia Middle East Africa) which consists of Africa, Middle East, Australia and other Asian and Pacific markets. These operating segments also represent our reportable segments.
On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses to Ferrero for approximately $1.3 billion in cash.  Both the total assets and net assets, consisting primarily of goodwill and intangibles, property, plant and equipment, and inventory, of the businesses were approximately $1.3 billion. The operating results for these businesses were primarily included in the North America reporting segment prior to the sale. Reported net sales for the divested businesses totaled $194 million and $507 million for the quarter and year-to-date periods ended June 29, 2019, respectively.
The measurement of reportable segment results is based on segment operating profit which is generally consistent with the presentation of operating profit in the Consolidated Statement of Income. Reportable segment results were as follows:
 Quarter endedYear-to-date period ended
(millions)June 27,
2020
June 29,
2019
June 27,
2020
June 29,
2019
Net sales
North America$2,167  $2,148  $4,264  $4,437  
Europe546  541  1,072  1,038  
Latin America223  239  450  464  
AMEA529  533  1,091  1,044  
Consolidated$3,465  $3,461  $6,877  $6,983  
Operating profit
North America$464  $322  $830  $702  
Europe92  36  162  96  
Latin America31  17  53  38  
AMEA38  45  84  92  
Total Reportable Segments625  $420  $1,129  $928  
Corporate(119) (23) (163) (150) 
Consolidated$506  $397  $966  $778  

Supplemental product information is provided below for net sales to external customers:
Quarter endedYear-to-date period ended
(millions)June 27,
2020
June 29,
2019
June 27,
2020
June 29,
2019
Snacks*$1,522  $1,741  $3,076  $3,521  
Cereal*1,444  1,256  2,769  2,531  
Frozen284  256  578  527  
Noodles and other215  208  454  404  
Consolidated$3,465  $3,461  $6,877  $6,983  
* The year-to-date snacks and cereal net sales reflect the correction of an error in the Company’s first quarter 2020 disclosure. First quarter net sales for snacks was understated $229 million and net sales for cereal was overstated $229 million within the disclosure included in our previously issued first quarter financial statements. The revisions, which did not impact consolidated net sales, are not considered material to the first or second quarter 2020 financial statements.