Equity (Tables)

6 Months Ended

Jun. 28, 2014

Quarters ended June 28, 2014 and June 29, 2013:
			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2014
	Basic	$	295	359	$	0.82
	Dilutive potential common shares			3		―
	Diluted	$	295	362	$	0.82
2013
	Basic	$	352	364	$	0.96
	Dilutive potential common shares			3		―
	Diluted	$	352	367	$	0.96

Year-to-date periods ended June 28, 2014 and June 29, 2013:
			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2014
	Basic	$	701	360	$	1.95
	Dilutive potential common shares			2		(0.01)
	Diluted	$	701	362	$	1.94
2013
	Basic	$	663	364	$	1.82
	Dilutive potential common shares			2		(0.01)
	Diluted	$	663	366	$	1.81


		Quarter ended June 28, 2014						Year-to-date period ended June 28, 2014
		Pre-tax		Tax (expense)		After-tax		Pre-tax		Tax (expense)		After-tax
(millions)		amount		benefit		amount		amount		benefit		amount
Net income					$	295					$	701
Other comprehensive income (loss):
Foreign currency translation adjustments	$	30	$	-		30	$	33	$	-		33
Cash flow hedges:
Unrealized gain (loss) on cash flow hedges		(23)		7		(16)		(24)		7		(17)
Reclassification to net income		(1)		-		(1)		(11)		3		(8)
Postretirement and postemployment benefits:
Amounts arising during the period:
Prior service credit (cost)		(9)		3		(6)		(9)		3		(6)
Reclassification to net income:
Net experience loss		1		-		1		2		-		2
Prior service cost		4		(1)		3		6		(2)		4
Other comprehensive income (loss)	$	2	$	9	$	11	$	(3)	$	11	$	8
Comprehensive income					$	306					$	709

		Quarter ended June 29, 2013						Year-to-date period ended June 29, 2013
		Pre-tax		Tax (expense)		After-tax		Pre-tax		Tax (expense)		After-tax
(Results are unaudited)		amount		benefit		amount		amount		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 income		(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 28, 2014 consisted of the following:

(millions)
Details about AOCI		Amount reclassified			Line item impacted
components		from AOCI			within Income Statement
		Quarter ended		Year-to-date period ended
		June 28, 2014		June 28, 2014

(Gain)loss on cash flow hedges:
Foreign currency exchange contracts	$	(1)	$	(2)	COGS
Foreign currency exchange contracts		(2)		(3)	SGA
Interest rate contracts		-		(9)	Interest expense
Commodity contracts		2		3	COGS
	$	(1)	$	(11)	Total before tax
		-		3	Tax (expense) benefit
	$	(1)	$	(8)	Net of tax

Amortization of postretirement and postemployment benefits:
Net experience loss	$	1	$	2	See Note 7 for further details
Prior service cost		4		6	See Note 7 for further details
	$	5	$	8	Total before tax
		(1)		(2)	Tax (expense) benefit
	$	4	$	6	Net of tax

Total reclassifications	$	3	$	(2)	Net of tax

Reclassifications out of AOCI for the quarter and year-to-date periods ended June 29, 2013 consisted of the following:

(millions)
Details about AOCI		Amount reclassified			Line item impacted
components		from AOCI			within Income Statement
		Quarter ended		Year-to-date period ended
		June 29, 2013		June 29, 2013

(Gain) loss 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	$	1	$	5	Net of tax

Accumulated other comprehensive income (loss) as of June 28, 2014 and December 28, 2013 consisted of the following:

			June 28,		December 28,
(millions)			2014		2013
Foreign currency translation adjustments		$	(823)	$	(856)
Cash flow hedges — unrealized net gain (loss)			(24)		1
Postretirement and postemployment benefits:
	Net experience loss		(13)		(15)
	Prior service cost		(68)		(66)
Total accumulated other comprehensive income (loss)		$	(928)	$	(936)