Equity

12 Months Ended

Jan. 01, 2022

Equity [Abstract]

Equity

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, restricted stock units, and to a lesser extent, certain contingently issuable performance shares. The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (shares in millions): 2021-10.6; 2020-7.3; 2019-14.0.

Stock transactions

The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 9.

In February 2020, the board of directors approved a new authorization to repurchase up to $1.5 billion of the Company's common stock through December 2022.

During 2021, the Company repurchased 4 million shares of common stock for a total of $240 million. During 2020, the Company didn't repurchase any shares of common stock. During 2019, the Company repurchased 4 million shares of common stock for a total of $220 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, adjustments for net experience gains (losses) and prior service credit (costs) related to employee benefit plans, and adjustments for unrealized (gains) losses on available-for-sale securities, net of related tax effects.

Reclassifications from Accumulated Other Comprehensive Income (AOCI) for the year ended January 1, 2022, January 2, 2021, and December 28, 2019, consisted of the following:

Details about AOCI Components	Amount reclassified from AOCI						Line item impacted within Income Statement
(millions)	2021		2020		2019
(Gains) and losses on cash flow hedges:
Interest rate contracts	$	22	$	14	$	4	Interest expense
	$	22	$	14	$	4	Total before tax
	(6)		(4)		(1)		Tax expense (benefit)
	$	16	$	10	$	3	Net of tax
Amortization of postretirement and postemployment benefits:
Net experience (gains) losses	$	(2)	$	(3)	$	(5)	OIE
Prior service (credit) cost	—		(1)		(1)		OIE
	$	(2)	$	(4)	$	(6)	Total before tax
	—		1		1		Tax expense (benefit)
	$	(2)	$	(3)	$	(5)	Net of tax
(Gains) losses on available-for-sale securities
Corporate bonds	$	(2)	$	—	$	(4)	OIE
	$	(2)	$	—	$	(4)	Total before tax
	—		—		—		Tax expense (benefit)
	$	(2)	$	—	$	(4)	Net of tax
Total reclassifications	$	12	$	7	$	(6)	Net of tax

Accumulated other comprehensive income (loss) as of January 1, 2022 and January 2, 2021 consisted of the following:

(millions)	January 1, 2022		January 2, 2021
Foreign currency translation adjustments	$	(1,681)	$	(1,668)
Cash flow hedges — unrealized net gain (loss)	(13)		(57)
Postretirement and postemployment benefits:
Net experience gain (loss)	(1)		2
Prior service credit (cost)	(26)		(12)
Available-for-sale securities unrealized net gain (loss)	—		3
Total accumulated other comprehensive income (loss)	$	(1,721)	$	(1,732)