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Reportable Segments
 6 Months Ended
Jun. 29, 2019
Segment Reporting [Abstract]  
Reportable Segments Reportable segments
Kellogg Company is the world’s leading producer of cereal, second largest producer of crackers, and a leading producer of savory snacks and frozen foods. Additional product offerings include toaster pastries, cereal bars, cookies, veggie foods and noodles. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom, and Nigeria.

On December 30, 2018 the Company reorganized its North American business. The reorganization eliminated the legacy business unit structure and internal reporting. In addition, the Company changed the internal reporting provided to the chief operating decision maker (CODM) and segment manager. As a result, the Company reevaluated its operating segments. In conjunction with the reorganization, certain global research and development resources and related activities were transferred from the North America business to Corporate. Prior period segment results were not restated for the transfer as the impacts were not considered material.

In addition, the Company transferred its Middle East, North Africa, and Turkey businesses from Kellogg Europe to Kellogg AMEA, effective December 30, 2018. This consolidated the Company's Africa business under a single regional management team. All comparable prior periods have been restated to reflect the change. For the quarter and year-to-date periods ended June 30, 2018, the change resulted in $62 million and $129 million, respectively, of reported net sales and $10 million and $24 million, respectively, of reported operating profit transferring from Kellogg Europe to Kellogg AMEA.
The Company manages its operations through four operating segments that are based on geographic location – North America which includes U.S. businesses and Canada; Europe which consists principally of European
countries; Latin America which consists of Central and South America and includes Mexico; and AMEA (Asia Middle East Africa) which consists of Africa, Middle East, Australia and other Asian and Pacific markets. These operating segments also represent our reportable segments.

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. Reportable segment results were as follows:
 
Quarter ended
 
Year-to-date period ended
(millions)
June 29,
2019
June 30,
2018
 
June 29,
2019
June 30,
2018
Net sales
 
 
 
 
 
North America
$
2,148

$
2,127

 
$
4,437

$
4,457

Europe
541

559

 
1,038

1,079

Latin America
239

239

 
464

471

AMEA
533

435

 
1,044

754

Consolidated
$
3,461

$
3,360

 
$
6,983

$
6,761

Operating profit
 
 
 
 
 
North America*
$
322

$
385

 
$
702

$
784

Europe
36

87

 
96

147

Latin America
17

20

 
38

42

AMEA
45

38

 
92

79

Total Reportable Segments
420

530

 
928

1,052

Corporate*
(23
)
(56
)
 
(150
)
(68
)
Consolidated
$
397

$
474

 
$
778

$
984


* Corporate in 2019 includes the cost of certain global research and development activities that were previously included in the North America reportable segment in 2018 that totaled approximately $12 million and $24 million for the quarter and year-to-date periods, respectively.
Supplemental product information is provided below for net sales to external customers:
 
 
Quarter ended
 
Year-to-date period ended
(millions)
 
June 29,
2019
June 30,
2018
 
June 29,
2019
June 30,
2018
Snacks
 
$
1,741

$
1,684

 
$
3,521

$
3,458

Cereal
 
1,256

1,304

 
2,531

2,655

Frozen
 
256

247

 
527

523

Noodles and other
 
208

125

 
404

125

Consolidated
 
$
3,461

$
3,360

 
$
6,983

$
6,761