Product Recall

12 Months Ended

Dec. 29, 2012

Product Recall [Abstract]

Product Recall [Text Block]

NOTE13

PRODUCT RECALL

During 2012 and 2010, the Company recorded charges in connection with product recalls. The Company recorded estimated customer returns and consumer rebates as a reduction of net sales, costs associated with returned product and the disposal and write-off of inventory as COGS, and other recall costs as SGA expense.

On October 8, 2012, the Company announced a recall of certain packages of Mini-Wheats cereal in the U.S. and Canada due to the possible presence of fragments of flexible metal mesh from a faulty manufacturing part.

On June 25, 2010, the Company announced a recall of select packages of Kellogg's cereal primarily in the U.S. due to an odor from waxy resins found in the package liner.

The following table presents a summary of charges related to the above recalls for the years ended December 29, 2012, December 31, 2011 and January 1, 2011:

(millions, except per share amount)		2012		2011		2010
Reduction of net sales	$	14	$	-	$	29
COGS		12		-		16
SGA expense		0		-		1
Total	$	26	$	-	$	46
Impact on earnings per diluted share	$	(0.05)	$	-	$	(0.09)

In addition to charges recorded in connection with the 2010 recall, the Company also lost sales of the impacted products that are not included in the table above.