Equity

9 Months Ended

Sep. 27, 2014

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 tables. There werezero and 5 millionanti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 27, 2014, respectively. There were6 million and 5 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 28, 2013, respectively.

Quarters ended September 27, 2014 and September 28, 2013:
			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2014
	Basic	$	224	358	$	0.63
	Dilutive potential common shares			2		(0.01)
	Diluted	$	224	360	$	0.62
2013
	Basic	$	326	362	$	0.90
	Dilutive potential common shares			2		―
	Diluted	$	326	364	$	0.90

Year-to-date periods ended September 27, 2014 and September 28, 2013:
			Net income	Average
			attributable to	shares		Earnings
(millions, except per share data)			Kellogg Company	outstanding		per share
2014
	Basic	$	925	359	$	2.58
	Dilutive potential common shares			2		(0.02)
	Diluted	$	925	361	$	2.56
2013
	Basic	$	989	363	$	2.72
	Dilutive potential common shares			3		(0.02)
	Diluted	$	989	366	$	2.70

In February 2014, the Company's board of directors approved a share repurchase program authorizing the repurchase of up to $1.5 billion of common stock through December 2015. This authorization supersedes the April 2013 authorization and is intended to allow the Company to repurchase shares for general corporate purposes and to offset issuances for employee benefit programs.

During the year-to-date period ended September 27, 2014, the Company repurchased approximately11 million shares of common stock for a total of $690 million. During the year-to-date period ended September 28, 2013, the Company repurchased approximately9 million shares of common stock for a total of $544 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. Other comprehensive incomeconsists 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.

Prior service credits arising during the period resulted from a change in post-retirement benefits provided to certain employees.

		Quarter ended September 27, 2014						Year-to-date period ended September 27, 2014
		Pre-tax		Tax (expense)		After-tax		Pre-tax		Tax (expense)		After-tax
(millions)		amount		benefit		amount		amount		benefit		amount
Net income					$	225					$	926
Other comprehensive income (loss):
Foreign currency translation adjustments	$	(87)	$	(17)		(104)	$	(54)	$	(17)		(71)
Cash flow hedges:
Unrealized gain (loss) on cash flow hedges		(2)		4		2		(26)		11		(15)
Reclassification to net income		-		-		-		(11)		3		(8)
Postretirement and postemployment benefits:
Amounts arising during the period:
Prior service credit (cost)		19		(7)		12		10		(4)		6
Reclassification to net income:
Net experience loss		1		-		1		3		-		3
Prior service cost		2		(1)		1		8		(3)		5
Other comprehensive income (loss)	$	(67)	$	(21)	$	(88)	$	(70)	$	(10)	$	(80)
Comprehensive income					$	137					$	846
		Quarter ended September 28, 2013						Year-to-date period ended September 28, 2013
		Pre-tax		Tax (expense)		After-tax		Pre-tax		Tax (expense)		After-tax
(Results are unaudited)		amount		benefit		amount		amount		benefit		amount
Net income					$	326					$	989
Other comprehensive income (loss):
Foreign currency translation adjustments	$	63	$	-		63	$	(28)	$	-		(28)
Cash flow hedges:
Unrealized gain (loss) on cash flow hedges		(7)		3		(4)		5		0		5
Reclassification to net income		(2)		-		(2)		(4)		-		(4)
Postretirement and postemployment benefits:
Amounts arising during the period:						-
Prior service credit (cost)		(1)		-		(1)		(1)		-		(1)
Reclassification to net income:
Net experience loss		1		-		1		4		-		4
Prior service cost		4		(1)		3		10		(3)		7
Other comprehensive income (loss)	$	58	$	2	$	60	$	(14)	$	(3)	$	(17)
Comprehensive income					$	386					$	972

Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the quarter and year-to-date periods ended September 27, 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
		September 27, 2014		September 27, 2014
(Gain) loss on cash flow hedges:
Foreign currency exchange contracts	$	-	$	(2)	COGS
Foreign currency exchange contracts		(2)		(5)	SGA
Interest rate contracts		-		(9)	Interest expense
Commodity contracts		2		5	COGS
	$	-	$	(11)	Total before tax
		-		3	Tax (expense) benefit
	$	-	$	(8)	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	1	$	3	See Note 7 for further details
Prior service cost		2		8	See Note 7 for further details
	$	3	$	11	Total before tax
		(1)		(3)	Tax (expense) benefit
	$	2	$	8	Net of tax
Total reclassifications	$	2	$	-	Net of tax

Reclassifications out of AOCI for the quarter and year-to-date periods ended September 28, 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
		September 28, 2013		September 28, 2013
(Gain) loss on cash flow hedges:
Foreign currency exchange contracts	$	(2)	$	(7)	COGS
Foreign currency exchange contracts		(1)		(1)	SGA
Interest rate contracts		(1)		(3)	Interest expense
Commodity contracts		2		7	COGS
	$	(2)	$	(4)	Total before tax
		-		-	Tax (expense) benefit
	$	(2)	$	(4)	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	1	$	4	See Note 7 for further details
Prior service cost		4		10	See Note 7 for further details
	$	5	$	14	Total before tax
		(1)		(3)	Tax (expense) benefit
	$	4	$	11	Net of tax
Total reclassifications	$	2	$	7	Net of tax

Accumulated other comprehensive income (loss) as of September 27, 2014 and December 28, 2013 consisted of the following:
			September 27,		December 28,
(millions)			2014		2013
Foreign currency translation adjustments		$	(927)	$	(856)
Cash flow hedges — unrealized net gain (loss)			(22)		1
Postretirement and postemployment benefits:
	Net experience loss		(12)		(15)
	Prior service cost		(55)		(66)
Total accumulated other comprehensive income (loss)		$	(1,016)	$	(936)