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Reportable Segments | 12 Months Ended
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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) |  | 2020 |  | 2019 |  | 2018
Net sales |  |  |  |  |  |
North America |  | $ | 8,361 |  |  | $ | 8,390 |  |  | $ | 8,688 |
Europe |  | 2,232 |  |  | 2,092 |  |  | 2,122 |
Latin America |  | 914 |  |  | 940 |  |  | 947 |
AMEA |  | 2,263 |  |  | 2,156 |  |  | 1,790 |
Consolidated |  | 13,770 |  |  | $ | 13,578 |  |  | $ | 13,547 |
Operating profit |  |  |  |  |  |
North America (a)(b) |  | $ | 1,473 |  |  | $ | 1,215 |  |  | $ | 1,397 |
Europe |  | 301 |  |  | 222 |  |  | 251 |
Latin America |  | 97 |  |  | 85 |  |  | 102 |
AMEA |  | 202 |  |  | 195 |  |  | 174 |
Total Reportable Segments |  | 2,073 |  |  | 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 |
Europe |  | 84 |  |  | 80 |  |  | 78 |
Latin America |  | 30 |  |  | 30 |  |  | 37 |
AMEA |  | 79 |  |  | 76 |  |  | 57 |
Total Reportable Segments |  | 475 |  |  | 477 |  |  | 513 |
Corporate |  | 4 |  |  | 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) |  | 2020 |  | 2019 |  | 2018
Interest expense |  |  |  |  |  |
North America |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Europe |  | 4 |  |  | 6 |  |  | 6 |
Latin America |  | 6 |  |  | 9 |  |  | 3 |
AMEA |  | 8 |  |  | 14 |  |  | 9 |
Corporate |  | 263 |  |  | 255 |  |  | 268 |
Consolidated |  | $ | 281 |  |  | $ | 284 |  |  | $ | 287 |
Income taxes |  |  |  |  |  |
Europe |  | $ | 29 |  |  | $ | 48 |  |  | $ | 23 |
Latin America |  | 20 |  |  | 16 |  |  | 30 |
AMEA |  | 33 |  |  | 23 |  |  | 23 |
Corporate & North America |  | 241 |  |  | 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) |  | 2020 |  | 2019 |  | 2018
Additions to long-lived assets |  |  |  |  |  |
North America |  | $ | 270 |  |  | $ | 356 |  |  | $ | 336 |
Europe |  | 120 |  |  | 83 |  |  | 84 |
Latin America |  | 31 |  |  | 41 |  |  | 76 |
AMEA |  | 77 |  |  | 101 |  |  | 79 |
Corporate |  | 7 |  |  | 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) |  | 2020 |  | 2019 |  | 2018
Net sales |  |  |  |  |  |
United States |  | $ | 7,821 |  |  | $ | 7,885 |  |  | $ | 8,176 |
All other countries |  | 5,949 |  |  | 5,693 |  |  | 5,371 |
Consolidated |  | $ | 13,770 |  |  | $ | 13,578 |  |  | $ | 13,547 |
Long-lived assets |  |  |  |  |  |
United States |  | $ | 2,048 |  |  | $ | 1,996 |  |  | $ | 2,197 |
All other countries |  | 1,665 |  |  | 1,616 |  |  | 1,534 |
Consolidated |  | $ | 3,713 |  |  | $ | 3,612 |  |  | $ | 3,731 |
Supplemental product information is provided below for net sales to external customers:
(millions) |  | 2020 |  | 2019 |  | 2018
Snacks |  | $ | 6,281 |  |  | $ | 6,663 |  |  | $ | 6,797 |
Cereal |  | 5,433 |  |  | 5,029 |  |  | 5,203 |
Frozen |  | 1,139 |  |  | 1,037 |  |  | 1,020 |
Noodles and other |  | 917 |  |  | 849 |  |  | 527 |
Consolidated |  | $ | 13,770 |  |  | $ | 13,578 |  |  | $ | 13,547 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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