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, 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. Prior period segment results were restated to reflect the new organizational structure. 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 year ended December 29, 2018, the change resulted in $273 million of reported net sales, and $46 million of reported operating profit transferring from Kellogg Europe to Kellogg AMEA. For the year ended December 30, 2017, the change resulted in $241 million of reported net sales, and $56 million 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.

On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit flavored snacks, pie crusts, and ice cream cone businesses to Ferrero for approximately $1.3 billion in cash. Both the total assets and the net assets, consisting primarily of goodwill and intangibles, property, plant and equipment, and inventory, of the businesses were approximately $1.3 billion. The operating results for these businesses were primarily included in the North America reporting segment prior to the sale.

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:



(millions)	2019			2018			2017
Net sales
North America	8,390			8,688			8,673
Europe	2,092			2,122			2,050
Latin America	940			947			944
AMEA	2,156			1,790			1,187
Consolidated	$	13,578		$	13,547		$	12,854
Operating profit
North America (a)(b)	1,215			1,397			1,246
Europe	222			251			220
Latin America	85			102			108
AMEA	195			174			140
Total Reportable Segments	1,717			1,924			1,714
Corporate (b)	(316		)	(218		)	(327		)
Consolidated	$	1,401		$	1,706		$	1,387
Depreciation and amortization (c)
North America	291			341			330
Europe	80			78			78
Latin America	30			37			37
AMEA	76			57			35
Total Reportable Segments	477			513			480
Corporate	7			3			1
Consolidated	$	484		$	516		$	481

Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by the CODM for the Company’s internationally-based reportable segments as shown below.



(millions)	2019		2018		2017
Interest expense
North America	$	—	$	1	$	3
Europe	6		6		14
Latin America	9		3		2
AMEA	14		9		4
Corporate	255		268		233
Consolidated	$	284	$	287	$	256
Income taxes
Europe	$	48	$	23	$	(37	)
Latin America	16		30		33
AMEA	23		23		10
Corporate & North America	234		105		404
Consolidated	$	321	$	181	$	410

Assets are reviewed by the CODM on a consolidated basis and therefore are no presented by operating segment. The CODM does review additions to long-lived assets based on operating segment.



(millions)	2019		2018		2017
Additions to long-lived assets
North America	$	356	$	336	$	329
Europe	83		84		102
Latin America	41		76		32
AMEA	101		79		34
Corporate	5		3		4
Consolidated	$	586	$	578	$	501

The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 19% of consolidated net sales during both 2019 and 2018, and 20% in 2017, comprised principally of sales within the United States.



(millions)	2019		2018		2017
Net sales
United States	$	7,885	$	8,176	$	8,160
All other countries	5,693		5,371		4,694
Consolidated	$	13,578	$	13,547	$	12,854
Long-lived assets
United States	$	1,996	$	2,197	$	2,195
All other countries	1,616		1,534		1,521
Consolidated	$	3,612	$	3,731	$	3,716



(millions)	2019		2018		2017
Snacks	$	6,663	$	6,797	$	6,683
Cereal	5,029		5,203		5,222
Frozen	1,037		1,020		949
Noodles and other	849		527		—
Consolidated	$	13,578	$	13,547	$	12,854