Reportable Segments

6 Months Ended

Jun. 28, 2014

Reportable Segments [Abstract]

Reportable Segments [Text Block]

Note 11Reportable segments

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

The Company currently manages its operations through eight 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 includes cereal, toaster pastries, health and wellness bars, and beverages.

U.S. Snacks includes products such as cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks.

U.S. Specialty includes the food service, convenience and Girl Scouts businesses. The food service business is mostly non-commercial, servicing institutions such as schools and hospitals.

North America Other includes 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.

			Quarter ended				Year-to-date period ended
			June 28,		June 29,		June 28,		June 29,
(millions)			2014		2013		2014		2013
Net sales
	U.S. Morning Foods	$	820	$	863	$	1,681	$	1,774
	U.S. Snacks		893		917		1,796		1,818
	U.S. Specialty		276		272		648		651
	North America Other		361		388		742		791
	Europe		772		723		1,480		1,415
	Latin America		320		304		598		612
	Asia Pacific		243		247		482		514
	Consolidated	$	3,685	$	3,714	$	7,427	$	7,575
Operating profit
	U.S. Morning Foods	$	143	$	180	$	271	$	343
	U.S. Snacks		130		130		225		236
	U.S. Specialty		63		62		150		140
	North America Other		62		78		134		153
	Europe		53		75		120		146
	Latin America		47		42		95		90
	Asia Pacific		2		17		16		38
	Total Reportable Segments		500		584		1,011		1,146
	Corporate		(33)		(14)		70		(73)
	Consolidated	$	467	$	570	$	1,081	$	1,073