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 were 2 million anti-dilutive potential common shares excluded from the reconciliation for the quarters ended April 2, 2016 and April 4, 2015.

Quarters ended April 2, 2016 and April 4, 2015:



(millions, except per share data)	Net income attributable to Kellogg Company		Average shares outstanding	Earnings per share
2016
Basic	$	175	351	$	0.50
Dilutive potential common shares			4	(0.01		)
Diluted	$	175	355	$	0.49
2015
Basic	$	227	355	$	0.64
Dilutive potential common shares			2	—
Diluted	$	227	357	$	0.64

In February 2014, the Company's board of directors approved a share repurchase program authorizing the repurchase of up to $1.5 billion of our common stock through December 2015. In December 2015, the board of directors approved a new authorization to repurchase of up to $1.5 billion of our common stock beginning in 2016 through December 2017.

During the quarter ended April 2, 2016, the Company repurchased approximately 3 million shares of common stock for a total of $210 million, of which $198 million was paid and $12 million payable at quarter-end. During the quarter ended April 4, 2015, the Company repurchased 4 million shares of common stock for a total of $285 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 income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience losses and prior service cost related to employee benefit plans.

Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the quarters ended April 2, 2016 and April 4, 2015 consisted of the following:



(millions)
Details about AOCI components	Amount reclassified from AOCI						Line item impacted within Income Statement
	Quarter ended April 2, 2016			Quarter ended April 4, 2015
(Gains) losses on cash flow hedges:
Foreign currency exchange contracts	$	(7	)	$	(7	)	COGS
Foreign currency exchange contracts	—			—			SGA
Interest rate contracts	6			—			Interest expense
Commodity contracts	3			3			COGS
	$	2		$	(4	)	Total before tax
	(1		)	—			Tax (expense) benefit
	$	1		$	(4	)	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience loss	$	1		$	1		See Note 9 for further details
Prior service cost	—			3			See Note 9 for further details
	$	1		$	4		Total before tax
	—			(1		)	Tax (expense) benefit
	$	1		$	3		Net of tax
Total reclassifications	$	2		$	(1	)	Net of tax

Accumulated other comprehensive income (loss) as of April 2, 2016 and January 2, 2016 consisted of the following:



(millions)	April 2, 2016			January 2, 2016
Foreign currency translation adjustments	$	(1,340	)	$	(1,314	)
Cash flow hedges — unrealized net gain (loss)	(72		)	(39		)
Postretirement and postemployment benefits:
Net experience loss	(15		)	(16		)
Prior service cost	(7		)	(7		)
Total accumulated other comprehensive income (loss)	$	(1,434	)	$	(1,376	)

Noncontrolling interests

In December 2012, the Company entered into a series of agreements with a third party including a subordinated loan (VIE Loan) of $44 million which is convertible into approximately 85% of the equity of the entity (VIE). Due to this convertible subordinated loan and other agreements, the Company determined that the entity was a variable interest entity, the Company is the primary beneficiary and the Company has consolidated the financial statements of the VIE. The results of the VIE’s operations are included in the Consolidated Statements of Income for the quarter ended April 4, 2015. During the quarter ended April 4, 2015, the Company determined that certain assets related to the VIE may not be fully recoverable and recorded a non-cash charge of $25 million, which was recorded as other income (expense), net. During the quarter ended July 4, 2015, the 2012 Agreements were terminated and the VIE loan, including related accrued interest and other receivables, were settled. This resulted in the Company no longer being considered the primary beneficiary of the VIE and accordingly, the VIE was deconsolidated as of July 4, 2015.