Reportable Segments

12 Months Ended

Dec. 31, 2011

Reportable Segments [Abstract]

Reportable Segments [Text Block]

NOTE16

REPORTABLE SEGMENTS

Kellogg Company is the world's leading producer of cereal and a leading producer of snacks and frozen foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States and United Kingdom.

Beginning in the fourth quarter of 2011, the Company now has the following reportable segments: U.S. Morning Foods and Kashi; U.S. Snacks; U.S. Specialty; North America Other; Europe; Latin America; and Asia Pacific.  Segment results of prior periods were recast to conform to the current presentation.  The Company currently manages its operations through nine operating segments that are based on product category or geographic location. These operating segments are evaluated for similarity with regards to economic characteristics, products, production processes, types or classes of customers, distribution methods and regulatory environments to determine if they can be aggregated into reportable segments.  The reportable segments are discussed in greater detail below:

U.S. Morning Foods and Kashi aggregates the U.S. Morning Foods and U.S. Kashi operating segments.  The U.S. Morning Foods operating segment includes cereal, toaster pastries, and health and wellness business generally marketed under the Kellogg's name.  The U.S. Kashi operating segment represents Kashi branded cereal, cereal bars, crackers, cookies and Stretch Island fruit snacks.

U.S. Snacks represents the U.S. snacks business which includes products such as cookies, crackers, cereal bars and fruit-flavored snacks.

U.S. Specialty primarily represents the food service and Girl Scouts business. The food service business is mostly non-commercial, and services schools, hospitals and prisons.

North America Other represents the U.S. Frozen and Canada operating segments.  As these operating segments are not considered economically similar enough to aggregate with other operating segments and are immaterial for separate disclosure, they have been grouped together as a single reportable segment.

The three remaining reportable segments are based on geographic location – Europe which consists principally of European countries;Latin America which is comprised of Central and South America and includes Mexico; and Asia Pacific which is comprised of South Africa, Australia and other Asian and Pacific markets.

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. Intercompany transactions between operating segments were insignificant in all periods presented.

(millions)			2011		2010		2009
Net sales
	U.S. Morning Foods & Kashi	$	3,635	$	3,480	$	3,587
	U.S. Snacks		2,908		2,745		2,758
	U.S. Specialty		955		916		913
	North America Other		1,375		1,261		1,252
	Europe		2,334		2,230		2,361
	Latin America		1,049		923		963
	Asia Pacific		942		842		741
	Consolidated	$	13,198	$	12,397	$	12,575
Operating profit
	U.S. Morning Foods & Kashi	$	648	$	630	$	728
	U.S. Snacks		431		475		436
	U.S. Specialty		216		240		190
	North America Other		258		220		228
	Europe		338		364		348
	Latin America		176		153		179
	Asia Pacific		106		74		86
	Total Reportable Segments		2,173		2,156		2,195
	Corporate (a)		(197)		(166)		(194)
	Consolidated	$	1,976	$	1,990	$	2,001
Depreciation and amortization
	U.S. Morning Foods & Kashi	$	131	$	125	$	132
	U.S. Snacks		91		96		94
	U.S. Specialty		5		5		4
	North America Other		30		31		26
	Europe		57		53		60
	Latin America		20		17		28
	Asia Pacific		27		53		22
	Total Reportable Segments		361		380		366
	Corporate		8		12		18
	Consolidated	$	369	$	392	$	384
(a)	Research and Development expense totaling $11 million for 2010 and $13 million for 2009 was reallocated to Corporate from the North America businesses.

Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by Management for our internationally-based reportable segments as shown below.

(millions)			2011		2010		2009
Interest expense
	Europe	$	4	$	1	$	1
	Latin America		6		-		-
	Asia Pacific		2		1		-
	Corporate		221		246		294
	Consolidated	$	233	$	248	$	295
Income taxes
	Europe	$	40	$	23	$	22
	Latin America		49		29		32
	Asia Pacific		21		19		16
	Corporate & North America		393		431		406
	Consolidated	$	503	$	502	$	476

Management reviews balance sheet information, including total assets, based on geography. For all North American-based operating segments, balance sheet information is reviewed by Management in total and not on an individual operating segment basis.

(millions)			2011		2010		2009
Total assets
	North America	$	9,128	$	8,623	$	8,465
	Europe		1,584		1,700		1,630
	Latin America		798		784		585
	Asia Pacific		529		596		535
	Corporate		2,275		3,006		3,354
	Elimination entries		(2,413)		(2,862)		(3,369)
	Consolidated	$	11,901	$	11,847	$	11,200
Additions to long-lived assets
	North America	$	421	$	327	$	236
	Europe		61		57		50
	Latin America		53		43		58
	Asia Pacific		54		45		30
	Corporate		5		2		3
	Consolidated	$	594	$	474	$	377

The Company's largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 20% of consolidated net sales during 2011, 21% in 2010, and 21% in 2009, 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)			2011		2010		2009
Net sales
	United States	$	8,239	$	7,786	$	7,946
	All other countries		4,959		4,611		4,629
	Consolidated	$	13,198	$	12,397	$	12,575
Long-lived assets
	United States	$	2,151	$	1,993	$	1,916
	All other countries		1,130		1,135		1,094
	Consolidated	$	3,281	$	3,128	$	3,010

Supplemental product information is provided below for net sales to external customers:

(millions)			2011		2010		2009
	Retail channel cereal	$	6,725	$	6,256	$	6,406
	Retail channel snacks		4,940		4,734		4,751
	Frozen and specialty channels		1,533		1,407		1,418
Consolidated		$	13,198	$	12,397	$	12,575