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Reportable Segments
 12 Months Ended
Jan. 01, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
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, veggie foods, and noodles. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom, Nigeria, Canada, Mexico and Australia.
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 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. Reported net sales for the divested businesses totaled $562 million for the year ended December 28, 2019.
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)202120202019
Net sales
North America$8,174 $8,361 $8,390 
Europe2,397 2,232 2,092 
Latin America997 914 940 
AMEA2,613 2,263 2,156 
Consolidated14,181 13,770 $13,578 
Operating profit
North America (a)$1,329 $1,473 $1,215 
Europe350 301 222 
Latin America109 97 85 
AMEA246 202 195 
Total Reportable Segments2,034 2,073 1,717 
Corporate(282)(312)(316)
Consolidated$1,752 $1,761 $1,401 
Depreciation and amortization
North America$262 $282 $291 
Europe92 84 80 
Latin America25 30 30 
AMEA84 79 76 
Total Reportable Segments463 475 477 
Corporate4 4 7 
Consolidated$467 $479 $484 
(a)During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million.


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 chief operating decision maker (CODM) for the Company’s internationally-based reportable segments as shown below.
(millions)202120202019
Interest expense
North America$— $— $— 
Europe4 4 6 
Latin America1 6 9 
AMEA17 8 14 
Corporate201 263 255 
Consolidated$223 $281 $284 
Income taxes
Europe$48 $29 $48 
Latin America52 20 16 
AMEA40 33 23 
Corporate & North America334 241 234 
Consolidated$474 $323 $321 

Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by operating segment. The CODM does review additions to long-lived assets based on operating segment.
(millions)202120202019
Additions to long-lived assets
North America$324 $270 $356 
Europe102 120 83 
Latin America42 31 41 
AMEA73 77 101 
Corporate12 7 5 
Consolidated$553 $505 $586 
The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 19% of consolidated net sales during 2021, 2020, and 2019, comprised principally of sales within the United States.
Supplemental geographic information is provided below for net sales to external customers and long-lived assets:
(millions)202120202019
Net sales
United States$7,646 $7,821 $7,885 
All other countries6,535 5,949 5,693 
Consolidated$14,181 $13,770 $13,578 
Long-lived assets
United States$2,092 $2,048 $1,996 
All other countries1,735 1,665 1,616 
Consolidated$3,827 $3,713 $3,612 
Supplemental product information is provided below for net sales to external customers:
(millions)202120202019
Snacks$6,807 $6,281 $6,663 
Cereal5,123 5,433 5,029 
Frozen1,106 1,139 1,037 
Noodles and other1,145 917 849 
Consolidated$14,181 $13,770 $13,578