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Reportable Segments
 12 Months Ended
Jan. 02, 2021
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
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 cone businesses to Ferrero for approximately $1.3 billion in cash. Both the total assets and the 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 $562 million and $893 million for the years ended December 28, 2019 and December 29, 2018, 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:
(millions)202020192018
Net sales
North America$8,361 $8,390 $8,688 
Europe2,232 2,092 2,122 
Latin America914 940 947 
AMEA2,263 2,156 1,790 
Consolidated13,770 $13,578 $13,547 
Operating profit
North America (a)(b)$1,473 $1,215 $1,397 
Europe301 222 251 
Latin America97 85 102 
AMEA202 195 174 
Total Reportable Segments2,073 1,717 1,924 
Corporate (b)(312)(316)(218)
Consolidated$1,761 $1,401 $1,706 
Depreciation and amortization (c)
North America$282 $291 $341 
Europe84 80 78 
Latin America30 30 37 
AMEA79 76 57 
Total Reportable Segments475 477 513 
Corporate4 7 3 
Consolidated$479 $484 $516 
(a)During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million.
(b)Corporate operating profit in 2020 and 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 totaling approximately $48 million.
(c)Includes asset impairment charges as discussed in Note 14.

Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by the CODM for the Company’s internationally-based reportable segments as shown below.
(millions)202020192018
Interest expense
North America$— $— $1 
Europe4 6 6 
Latin America6 9 3 
AMEA8 14 9 
Corporate263 255 268 
Consolidated$281 $284 $287 
Income taxes
Europe$29 $48 $23 
Latin America20 16 30 
AMEA33 23 23 
Corporate & North America241 234 105 
Consolidated$323 $321 $181 

Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by operating segment. The CODM does review additions to long-lived assets based on operating segment.
(millions)202020192018
Additions to long-lived assets
North America$270 $356 $336 
Europe120 83 84 
Latin America31 41 76 
AMEA77 101 79 
Corporate7 5 3 
Consolidated$505 $586 $578 
The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 19% of consolidated net sales during 2020, 2019, and 2018, comprised principally of sales within the United States.
Supplemental geographic information is provided below for net sales to external customers and long-lived assets:
(millions)202020192018
Net sales
United States$7,821 $7,885 $8,176 
All other countries5,949 5,693 5,371 
Consolidated$13,770 $13,578 $13,547 
Long-lived assets
United States$2,048 $1,996 $2,197 
All other countries1,665 1,616 1,534 
Consolidated$3,713 $3,612 $3,731 
Supplemental product information is provided below for net sales to external customers:
(millions)202020192018
Snacks$6,281 $6,663 $6,797 
Cereal5,433 5,029 5,203 
Frozen1,139 1,037 1,020 
Noodles and other917 849 527 
Consolidated$13,770 $13,578 $13,547