Equity

6 Months Ended

Jun. 29, 2013

Equity [Abstract]

Equity [Text Block]

Note 4 Equity

Earnings per share

Basic earnings per share is determined by dividing net income attributable to Kellogg Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, and to a lesser extent, certain contingently issuable performance shares. Basic earnings per share is reconciled to diluted earnings per share in the following table. There were6 million and 4 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended June 29, 2013. The total number of anti-dilutive potential common shares excluded from the reconciliation were 17 million and 13 million for the quarter and year-to-date periods ended June 30, 2012.

Quarters ended June 29, 2013 and June 30, 2012:
			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2013
	Basic	$	352	364	$	0.96
	Dilutive potential common shares			3		―
	Diluted	$	352	367	$	0.96
2012
	Basic	$	324	357	$	0.91
	Dilutive potential common shares			2		(0.01)
	Diluted	$	324	359	$	0.90

Year-to-date periods ended June 29, 2013 and June 30, 2012:
			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2013
	Basic	$	663	364	$	1.82
	Dilutive potential common shares			2		(0.01)
	Diluted	$	663	366	$	1.81
2012
	Basic	$	675	357	$	1.89
	Dilutive potential common shares			2		(0.01)
	Diluted	$	675	359	$	1.88

In December 2012, the Company's board of directors approved a $300 million share repurchase program for 2013, which was superseded in April 2013 by an authorization to repurchase shares up to $1 billion through April 2014. In May 2013, the Company entered into an Accelerated Share Repurchase (ASR) Agreement with a financial institution counterparty and paid $355 million for the repurchase of shares during the term of the Agreement which extends through August 2013. The total number of shares ultimately delivered, and therefore the average price paid for shares, will be determined at the end of the purchase period based on the volume weighted average price of the Company's stock during that period. During the quarter ended June 29, 2013, 4.9 million shares were initially delivered to the Company and accounted for as a reduction to Kellogg Company equity. As of June 29, 2013, $36 million of the $355 million payment has been recorded as a reduction of capital in excess of par for the additional shares to be delivered to the Company.During the year-to-date period ended June 29, 2013, the Company repurchased approximately8 million shares of common stock for a total of $508 million, including shares initially delivered under the ASR. During the year-to-date period ended June 30, 2012, the Company repurchased slightly more than1 million shares of common stock for a total of $63 million.

Comprehensive income

Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. OCI consists of foreign currency translation adjustments, fair value adjustments associated with cash flowhedges and adjustments for net experience losses and prior service cost related to employee benefit plans.

				Quarter ended						Year-to-date period ended
				June 29, 2013						June 29, 2013
					Pre-tax		Tax (expense)		After-tax		Pre-tax		Tax (expense)		After-tax
(millions)					amount		or benefit		amount		amount		or benefit		amount
Net income								$	352					$	663
Other comprehensive income (loss):
	Foreign currency translation adjustments			$	(51)	$	-		(51)	$	(91)	$	-		(91)
	Cash flow hedges:
			Unrealized gain (loss) on cash flow hedges		1		-		1		12		(3)		9
			Reclassification to net earnings		(2)		-		(2)		(2)		-		(2)
	Postretirement and postemployment benefits:
		Reclassification to net income:
			Net experience loss		1		-		1		3		-		3
			Prior service cost		3		(1)		2		6		(2)		4
Other comprehensive income (loss)				$	(48)	$	(1)		(49)	$	(72)	$	(5)		(77)
Comprehensive income								$	303					$	586

Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the quarter and year-to-date periods ended June 29, 2013 consisted of the following:
(millions)
Details about AOCI		Amount reclassified				Affected Line Item in the Statement
components		from AOCI				where Net Income is Presented
	Quarter ended		Year-to-date period ended
	June 29, 2013		June 29, 2013
Gains and losses on cash flow hedges:
Foreign currency exchange contracts	$	(3)		$	(5)	COGS
Interest rate contracts		(1)			(2)	Interest expense
Commodity contracts		2			5	COGS
	$	(2)		$	(2)	Total before tax
		-			-	Tax (expense) benefit
	$	(2)		$	(2)	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	1		$	3	See Note 7 for further details
Prior service cost		3			6	See Note 7 for further details
	$	4		$	9	Total before tax
		(1)			(2)	Tax (expense) benefit
	$	3		$	7	Net of tax
Total reclassifications for the quarter	$	1		$	5	Net of tax

Accumulated other comprehensive income (loss) as of June 29, 2013 and December 29, 2012 consisted of the following:
			June 29,		December 29,
(millions)			2013		2012
Foreign currency translation adjustments		$	(923)	$	(832)
Cash flow hedges — unrealized net gain (loss)			4		(3)
Postretirement and postemployment benefits:
	Net experience loss		(26)		(29)
	Prior service cost		(78)		(82)
Total accumulated other comprehensive income (loss)		$	(1,023)	$	(946)