Reportable Segments

3 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Reportable Segments

Reportable 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 manages its operations through nine 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.

The U.S. Morning Foods operating segment includes cereal, toaster pastries, and health and wellness beverages and bars.

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

U.S. Specialty primarily represents food away from home channels, including food service, convenience, vending, Girl Scouts and food manufacturing. The food service business is mostly non-commercial, serving institutions such as schools and hospitals. The convenience business includes traditional convenience stores as well as alternate retail outlets.

North America Other includes the U.S. Frozen, Kashi 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 consists of Central and South America and includes Mexico; and Asia Pacific which consists of Sub-Saharan 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
(millions)	April 1, 2017			April 2, 2016
Net sales
U.S. Morning Foods	$	719		$	767
U.S. Snacks	781			832
U.S. Specialty	395			376
North America Other	393			414
Europe	512			598
Latin America	222			192
Asia Pacific	232			216
Consolidated	$	3,254		$	3,395
Operating profit
U.S. Morning Foods	$	160		$	148
U.S. Snacks	(44		)	83
U.S. Specialty	96			86
North America Other	49			45
Europe	66			70
Latin America	33			23
Asia Pacific	22			17
Total Reportable Segments	382			472
Corporate (a)	(22		)	(34		)
Consolidated	$	360		$	438

(a) Includes mark-to-market adjustments for pension and postretirement plans, commodity and foreign currency contracts totaling ($21) million and ($24) million for the quarters ended April 1, 2017 and April 2, 2016, respectively.