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NOTES PAYABLE AND LONG-TERM DEBT | 12 Months Ended
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Dec. 28, 2024
Debt [Abstract] |
Long-term Debt [Text Block] | NOTES PAYABLE AND LONG-TERM DEBT The following table presents the components of notes payable at year end December 28, 2024 and December 30, 2023:
(millions) |  | 2024 |  | 2023
|  | Principal amount |  |  |  | Principal amount |  |
Bank borrowings |  | $ | 113 |  |  |  |  | $ | 121 |  |  |
The following table presents the components of subordinated long-term debt at year end December 28, 2024 and December 30, 2023:
(millions) |  | 2024 |  | 2023
5.75% $300 million U.S. Dollar Notes due 2054 |  | $ | 296 |  |  | $ | — |
4.50% $650 million U.S. Dollar Notes due 2046 |  | 639 |  |  | 639 |
3.75% €300 million Euro Notes due 2034 |  | 310 |  |  | — |
5.25% $400 million U.S. Dollar Notes due 2033 |  | 397 |  |  | 397 |
7.45% $625 million U.S. Dollar Debentures due 2031 |  | 623 |  |  | 622 |
2.10% $500 million U.S. Dollar Notes due 2030 |  | 498 |  |  | 497 |
0.50% €300 million Euro Notes due 2029 |  | 311 |  |  | 329 |
4.30% $600 million U.S. Dollar Notes due 2028 |  | 557 |  |  | 552 |
3.40% $600 million U.S. Dollar Notes due 2027 |  | 598 |  |  | 598 |
3.25% $750 million U.S. Dollar Notes due 2026 |  | 748 |  |  | 747 |
1.25% €600 million Euro Notes due 2025 |  | 627 |  |  | 667 |
1.00% €600 million Euro Notes due 2024 |  | — |  |  | 655 |
Other |  | 26 |  |  | 49 |
|  | 5,630 |  |  | 5,752 |
Less current maturities |  | (632) |  |  | (663) |
Balance at year end |  | $ | 4,998 |  |  | $ | 5,089 |
During the second quarter of 2024, Kellanova issued $300 million of thirty-year 5.75% Notes due 2054, resulting in net proceeds after discount and underwriting commissions of $296 million. In connection with the debt issuance, the Company recorded gains totaling $161 million, including approximately a $11 million gain that was realized in 2024, on forward starting swaps with a notional value of $300 million. These gains were recorded in accumulated other comprehensive income and will be amortized to interest expense over the term of the Notes. The average effective interest rate over the term of the Notes, reflecting issuance discount and hedge settlement is 4.0%. Additionally, during the second quarter of 2024, Kellanova issued €300 million of ten-year 3.75% Notes due 2034, resulting in net proceeds after discount and underwriting commissions of €297 million. In connection with the debt issuance, the Company recorded gains totaling €51 million (approximately $55 million), including approximately a €5 million (approximately $5 million) loss realized in 2024, on forward starting swaps with a notional value of €250 million. These gains were recorded in accumulated other comprehensive income and will be amortized to interest expense over the term of the Notes. The average effective interest rate over the term of the Notes, reflecting issuance discount and hedge settlement is 2.2%. The proceeds from these notes were used for general corporate purposes, including the payment of offering related fees and expenses, and repayment of a portion of the €600 million 1.0% Notes when they matured on May 17, 2024. The Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions, as well as a change of control provision. During the first quarter of 2023, Kellanova issued $400 million of ten-year 5.25% Notes due 2033, resulting in net proceeds after discount and underwriting commissions of $396 million. The proceeds from these notes were used for general corporate purposes, including the payment of offering related fees and expenses, repayment of the $210 million 2.75% Notes when they matured on March 1, 2023, and repayment of a portion of commercial paper borrowings. The Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions, as well as a change of control provision. In connection with the debt issuance, Kellanova terminated forward starting interest rate swaps with notional amounts totaling $400 million, resulting in a gain of $47 million in the first quarter of 2023. These derivatives were accounted for as cash flow hedges. The total net gain of $91 million, including those realized in prior periods, were recorded in accumulated other comprehensive income and will be amortized to interest expense over the term of the Notes. At the time of debt issuance, the effective interest rate on the Notes, reflecting issuance discount and hedge settlement was 3.06%. All of the Company’s Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions and also contain a change of control provision. There are no significant restrictions on the payment of dividends by the Company. The Company was in compliance with all these covenants as of December 28, 2024. At December 28, 2024, the Company had $2.9 billion of short-term lines of credit and letters of credit, of which $2.8 billion were unused and available for borrowing primarily on an unsecured basis. These lines were comprised principally of the December 2021 unsecured $1.5 billion Five-Year Credit Agreement, which expires in December 2026, and an unsecured $750 million 364-Day Credit Agreement, which expires in December 2025. The Five-Year Credit Agreement allows the Company to borrow, on a revolving credit basis, up to $1.5 billion, which includes the ability to obtain European swingline loans in an aggregate principal amount up to the equivalent of $300 million. In December 2021, the Company terminated the original Five-Year Credit Agreement, which was originally set to expire in January of 2023, and entered into a new Five-Year Credit Agreement, which expires in December 2026. In December 2024, the Company entered into an unsecured 364-Day Credit Agreement to borrow, on a revolving credit basis, up to $750 million outstanding at any time, which is expected to mature in December 2025. The Five-Year and 364 Day Credit Agreements which had no outstanding borrowings as December 28, 2024, contain customary covenants and warranties, including specified restrictions on indebtedness, liens and a specified interest expense coverage ratio. If an event of default occurs, then, to the extent permitted, the administrative agents may terminate the commitments under the credit facilities, accelerate any outstanding loans under the agreements, and demand the deposit of cash collateral equal to the lender's letter of credit exposure plus interest. The Company was in compliance with all financial covenants contained in these agreements at December 28, 2024. Scheduled principal repayments on long-term debt are (in millions): 2025–$631; 2026–$754; 2027–$604; 2028–$604; 2029–$313; 2030 and beyond–$2,797. Financial institutions have issued standby letters of credit conditionally guaranteeing obligations on behalf of the Company totaling $67 million, including $66 million secured and $1 million unsecured, as of December 28, 2024. These obligations are related primarily to insurance programs. There were no amounts drawn down on the letters of credit as of December 28, 2024. Interest expense capitalized as part of the construction cost of fixed assets was immaterial for all periods presented.

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