WK Kellogg (KLG) 10-Q 6 Aug 24 2024 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 29, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 29, 2024
Document Transition Report	false
Entity File Number	001-41755
Entity Registrant Name	WK Kellogg Co
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	92-1243173
Entity Address, Address Line One	One Kellogg Square
Entity Address, City or Town	Battle Creek
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49016-3599
City Area Code	269
Local Phone Number	401-3000
Title of 12(b) Security	Common Stock, $.0001 par value per share
Trading Symbol	KLG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		85,901,439
Amendment Flag	false
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Central Index Key	0001959348
Current Fiscal Year End Date	--12-28

CONSOLIDATED BALANCE SHEET (Una

CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Current assets
Cash and cash equivalents	$ 44	$ 89
Accounts receivable, net	217	244
Inventories	360	345
Other current assets	21	28
Total current assets	642	706
Property, net	748	739
Goodwill	53	53
Other intangibles	57	57
Postretirement plan assets	300	283
Other assets	97	51
Total assets	1,897	1,889
Current liabilities
Notes payable	1	4
Current maturities of long-term debt	12	8
Accounts payable	538	541
Accrued advertising and promotion	89	121
Accrued salaries and wages	35	57
Other current liabilities	103	105
Total current liabilities	778	836
Long-term debt	478	487
Deferred income taxes	106	106
Pension liability	126	135
Other liabilities	73	25
Commitments and contingencies (Note 9)
Equity
Common stock, $0.0001 par value, 1,000,000,000 shares authorized Issued: 85,901,439 shares in 2024 and 85,812,883 shares in 2023	0	0
Capital in excess of par value	335	327
Retained earnings	37	1
Accumulated other comprehensive loss	(36)	(28)
Total equity	336	300
Total liabilities and equity	$ 1,897	$ 1,889

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares	Jun. 29, 2024	Dec. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Actual shares outstanding at period end (in shares)	85,901,439	85,812,883

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Income Statement [Abstract]
Net sales		$ 672	$ 700	$ 1,379	$ 1,420
Cost of goods sold		476	509	980	1,048
Selling, general and administrative expense		149	163	306	318
Operating profit		47	28	93	54
Interest expense		8	0	16	0
Other income (expense), net		4	7	10	15
Income before income taxes		43	35	87	69
Income taxes		12	8	23	16
Net income		$ 31	$ 27	$ 64	$ 53
Per share amounts:
Basic earnings (in dollars per share)	[1]	$ 0.37	$ 0.32	$ 0.75	$ 0.62
Diluted earnings (in dollars per share)	[1]	$ 0.36	$ 0.32	$ 0.73	$ 0.62
Average shares outstanding:
Basic (in shares)		86	86	86	86
Diluted (in shares)		88	86	87	86
Actual shares outstanding at period end (in shares)		86	86	86	86
[1] On October 2, 2023, Kellanova, the former parent company of WK Kellogg Co, distributed 85,631,304 shares of WK Kellogg Co common stock to Kellanova's shareowners in connection with its Spin-Off of WK Kellogg Co (the "Spin-Off"). See Note 1 "Accounting Policies" to the Unaudited Consolidated Financial Statements for more information. Basic and diluted earnings per share were retrospectively recast for the number of shares of WK Kellogg Co common stock outstanding immediately following the Spin-Off for the quarter and year-to-date period ended July 1, 2023.

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	Oct. 02, 2023 shares
Stock issued during period, new issues (in shares)	85,631,304
Kellenova
Stock issued during period, new issues (in shares)	85,631,304

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pre-tax amount
Income before income taxes	$ 43	$ 35	$ 87	$ 69
Foreign currency translation adjustments:
Foreign currency translation adjustments during period	(3)	2	(6)	4
Reclassification to net income:
Prior service cost	(1)		(2)
Comprehensive income	39	37	79	73
Tax (expense) benefit
Net income	(12)	(8)	(23)	(16)
Foreign currency translation adjustments:
Foreign currency translation adjustments during period	1	0	2	0
Reclassification to net income:
Prior service cost	0		0
Comprehensive income	(11)	(8)	(21)	(16)
After-tax amount
Net income	31	27	64	53
Foreign currency translation adjustments:
Foreign currency translation adjustments during period	(2)	2	(4)	4
Reclassification to net income:
Prior service cost	(1)		(2)
Comprehensive income	$ 28	$ 29	$ 58	$ 57

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common stock	Net Parent Investment	Capital in excess of par value	Retained earnings	Accumulated other comprehensive income (loss)
Balance at Dec. 31, 2022	$ 687		$ 725	$ 0	$ 0	$ (38)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	53		53
Net transfer (to)/from Kellanova	(94)		(94)
Other comprehensive income (loss)	4					4
Balance at Jul. 01, 2023	650		684	0	0	(34)
Balance at Apr. 01, 2023	673		709		0	(36)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27		27
Net transfer (to)/from Kellanova	(52)		(52)
Other comprehensive income (loss)	2					2
Balance at Jul. 01, 2023	650		$ 684	0	0	(34)
Balance (in shares) at Dec. 30, 2023		86
Balance at Dec. 30, 2023	300	$ 0		327	1	(28)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	64				64
Dividends declared ($0.16 per share)	(27)				(27)
Other comprehensive income (loss)	(8)					(8)
Stock compensation	5			6	(1)
Share issuance	2			2
Balance (in shares) at Jun. 29, 2024		86
Balance at Jun. 29, 2024	$ 336	$ 0		335	37	(36)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.32
Balance (in shares) at Mar. 30, 2024		86
Balance at Mar. 30, 2024	$ 317	$ 0		329	20	(32)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	31				31
Dividends declared ($0.16 per share)	(13)				(13)
Other comprehensive income (loss)	(4)					(4)
Stock compensation	4			5	(1)
Share issuance	1			1
Balance (in shares) at Jun. 29, 2024		86
Balance at Jun. 29, 2024	$ 336	$ 0		$ 335	$ 37	$ (36)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.16

CONSOLIDATED STATEMENT OF EQU_2

CONSOLIDATED STATEMENT OF EQUITY (unaudited) (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 29, 2024	Jun. 29, 2024
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.16	$ 0.32

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023
Operating activities
Net income	$ 64	$ 53
Adjustments to reconcile net income to operating cash flows:
Depreciation and amortization	39	32
Pension and postretirement plan benefit	(18)	(13)
Deferred income taxes	1	0
Stock compensation	6	2
Other	5	(1)
Pension plan contributions	(10)	(1)
Changes in operating assets and liabilities:
Trade receivables	36	(9)
Inventories	(17)	101
Accounts payable	(4)	(21)
Income taxes payable	3	0
Accrued advertising and promotion	(32)	8
Accrued salaries and wages	(22)	2
All other current assets and liabilities	(14)	(13)
Net cash provided by (used in) operating activities	37	140
Investing activities
Additions to properties	(47)	(60)
Property damage recoveries from insurance proceeds	0	4
Net cash provided by (used in) investing activities	(47)	(56)
Financing activities
Repayment of borrowings under the Credit Agreement	(6)	0
Issuance (repayment) of notes payables, with maturities less than 90 days	(3)	0
Net issuances of common stock	2	0
Dividends paid	(27)	0
Net transfers (to) from Kellanova	0	(82)
Other	1	0
Net cash provided by (used in) financing activities	(33)	(82)
Effect of exchange rate changes on cash and cash equivalents	(2)	0
Increase (decrease) in cash and cash equivalents	(45)	2
Cash and cash equivalents at beginning of period	89	0
Cash and cash equivalents at end of period	44	2
Supplemental cash flow disclosures of non-cash investing activities:
Additions to properties included in accounts payable	$ 17	$ 16

Accounting policies

Accounting policies	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Accounting policies	Accounting policies Basis of presentation On October 2, 2023 ("Spin-Off Date"), Kellanova (formerly known as Kellogg Company) completed the spin-off (the "Spin-Off") of its North American cereal business, resulting in a new independent public company, WK Kellogg Co (the "Company"). P rior to the Spin-Off, the Company historically operated as part of Kellanova. For periods prior to the Spin-Off, the accompanying Unaudited Financial Statements were derived from the consolidated financial statements and accounting records of Kellanova. For all periods subsequent to the Spin-Off, the Unaudited Consolidated Financial Statements are based on actual results as a standalone company. Further information surrounding the Spin-Off and basis of presentation utilized for periods prior to the Spin-Off is included within Note 1 of the Company’s 2023 Annual Report on Form 10-K (the "2023 Annual Report"). In connection with the Spin-Off, the Company entered into several agreements with Kellanova that govern the relationship of the parties following the Spin-Off and allocate between WK Kellogg Co and Kellanova various assets, liabilities, and obligations, including, among other things, employee benefits, intellectual property, and tax related assets and liabilities. The agreements included a Separation and Distribution Agreement, Employee Matters Agreement, Supply Agreement, Master Ownership and License Agreements regarding Patents, Trademarks and Certain Related Intellectual Property, Tax Matters Agreement and Transition Services Agreement. The allocation of expenses from Kellanova to the Company was reflected as follows in the Unaudited Consolidated Statement of Operations for the quarter and year-to-date ended July 1, 2023: Quarter ended Year-to-date period ended (millions) July 1, 2023 July 1, 2023 Cost of goods sold $ 34 $ 89 Selling, general and administrative 89 174 Other (income) expense, net (5) (11) Total $ 118 $ 252 The components of net parent investment for the year-to-date period ended July 1, 2023 were: (millions) July 1, 2023 Net transfers (to)/from Kellanova as reflected in the Unaudited Consolidated Statement of Cash Flow $ (82) Non-cash stock compensation expense 2 Non-cash pension and postretirement benefit (14) Net transfers from/(to) Kellanova as reflected in the Unaudited Consolidated Statement of Changes in Equity $ (94) The accompanying Unaudited Consolidated Financial Statements reflect the results of operations, financial position and cash flows of the Company prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The unaudited interim financial information of the Company included in this report reflects all adjustments, all of which are of a normal and recurring nature, that management believes are necessary for a fair statement of the results of operations, comprehensive income, financial position, equity and cash flows for the periods presented. This interim information should be read in conjunction with the financial statements and accompanying footnotes within the 2023 Annual Report. The balance sheet information at December 30, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP in the United States. The results of operations for the quarter ended June 29, 2024 are not necessarily indicative of the results to be expected for other interim periods or the full year. Accounts payable - Supplier Finance Programs The Company establishes competitive market-based terms with our suppliers, regardless of whether they participate in supplier finance programs, which generally range from 0 to 135 days depending on their respective industry and geography. The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in Net cash provided by (used in) operating activities in the Unaudited Consolidated Statement of Cash Flows. As of June 29, 2024, $158 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. As of December 30, 2023, $142 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. Disaggregated net sales The following table presents the Company's disaggregated net sales by country: Quarter ended Year-to-date period ended (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 United States $ 588 $ 618 $ 1,212 $ 1,255 Canada 76 72 150 146 Other 8 10 17 19 Total $ 672 $ 700 $ 1,379 $ 1,420 Accounting standards to be adopted in future periods Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard requires all public entities that are subject to segment reporting requirements to disclose additional information, including significant segment expenses and other segment items on an annual and interim basis. It also requires the disclosure of the title and the position of the chief operating decision maker and how the reported measures are used for making business decisions. This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company intends to adopt the updated standard for the fiscal year ending December 28, 2024. The Company is currently evaluating the impact the adoption of this standard will have on its disclosures. Income Taxes: Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard primarily expands the required disclosures surrounding the rate reconciliation and income taxes paid. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company intends to adopt the updated standard for the fiscal year ending January 3, 2026. The Company is currently evaluating the impact the adoption of this standard will have on its disclosures.

Sale of accounts receivable

Sale of accounts receivable	6 Months Ended
	Jun. 29, 2024
Transfers and Servicing of Financial Assets [Abstract]
Sale of accounts receivable	Sale of accounts receivable The Company has a program in which a discrete group of customers are allowed to extend their payment terms in exchange for the elimination of early payment discounts (Extended Terms Program). The Company has a monetization agreement with an unaffiliated financial institution specifically designed to factor trade receivables with certain customers that participate in the Extended Terms Program. Under this monetization arrangement, from time to time, the Company sells these customers’ trade receivables at a discount on a non-recourse basis. A portion of the cash proceeds is subject to certain restrictions. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being de-recognized from the Unaudited Consolidated Balance Sheets. The monetization program provides for the continuing sale of certain receivables on a revolving basis until terminated by either party; however, the maximum receivables that may be sold at any time is approximately $350 million. For all periods prior to the Spin-Off, the Company participated in Kellanova's monetization program and received an allocation of the recorded net loss on sale of receivables, based on the proportion of monetized receivables. The Company has no retained interest in the receivables sold; however, the Company does have collection and administrative responsibilities for the receivables sold. The Company has not recorded any servicing assets or liabilities as of June 29, 2024 and December 30, 2023 for these agreements, as the fair value of these servicing arrangements as well as the fees earned were not material to the financial statements. Accounts receivable sol d of $313 million a nd $266 million remained outstanding under these arrangements as of June 29, 2024 and December 30, 2023, respectively. The proceeds from these sales of receivables are included in Net cash provided by (used in) operating activities in the Unaudited Consolidated Statement of Cash Flows in the period of sale. The recorded net loss on sale of receivables w as $5 million and $9 million for the quarter and year-to-date period ended June 29, 2024, respectively, and $4 million and $8 million for the quart er and year-to-date period ended July 1, 2023, respectively. The recorded loss is included in Other income (expense), net ("OIE"). A portion of cash received related to the accounts receivable monetization program is restricted as part of the Extended Terms collateralization agreement. As of June 29, 2024 and December 30, 2023, the amount of restricted cash was $16 million a nd $13 million, respectively, and is included in Cash and cash equivalents in the Unaudited Consolidated Balance Sheets.

Equity

Equity	6 Months Ended
	Jun. 29, 2024
Equity [Abstract]
Equity	Equity Earnings per share Basic earnings per share is determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if all dilutive potential shares of common stock had been issued. Dilutive potential shares of common stock consist principally of unvested restricted stock units. As of June 29, 2024, the Company had approximately two million dilutive shares and no anti-dilutive shares. On the Spin-Off Date, Kellanova distributed 85,631,304 shares of the Company's common stock to Kellanova's shareowners in connection with the Spin-Off. For comparative purposes, weighted average shares outstanding for the quarter and year-to-date period ended July 1, 2023 have been retroactively recast to reflect the effects of the changes in equity structure resulting from the Spin-Off and assume the same basic weighted average shares as of the Spin-Off Date. For periods prior to the Spin-Off, it is assumed that there are no dilutive securities as there were no stock-based awards of the Company outstanding. Refer to the Unaudited Consolidated Statement of Income for basic and diluted earnings per share for the quarters and year-to-date periods ended June 29, 2024 and July 1, 2023. 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 shareowners. Other comprehensive income consists of foreign currency translation adjustments, adjustments for net experience gains (losses), prior service credit (costs) related to employee benefit plans, which are recorded in OIE within the statement of income, upon reclassification from Accumulated other comprehensive income ("AOCI"). The related tax effects of these items are recorded in Income taxes within the Unaudited Consolidated Statement of Income, upon reclassification from AOCI. AOCI as of June 29, 2024 and December 30, 2023 consisted of the following: (millions) June 29, December 30, Foreign currency translation adjustments $ (41) $ (35) Postretirement and postemployment benefits: Prior service credit (cost) 5 7 Total accumulated other comprehensive income (loss) $ (36) $ (28)

Pension and postretirement bene

Pension and postretirement benefits	6 Months Ended
	Jun. 29, 2024
Retirement Benefits [Abstract]
Pension and postretirement benefits	Pension and postretirement benefits The Company sponsors a pension plan in the United States and several plans in the United States and Canada that provide health care and other welfare benefits to retired employees who have met certain age and service requirements. These plans are described within the footnotes to the Consolidated Financial Statements included in the 2023 Annual Report. Components of Company benefit plans (income) expense for the periods presented are included in the tables below. Excluding the service cost component, these amounts are included within OIE in the Unaudited Consolidated Statement of Income. The following tables present the pension expense and nonpension postretirement income directly attributable to the Company for the quarter and year-to-date period ended June 29, 2024: Pension Quarter ended Year-to-date period ended (millions) June 29, 2024 June 29, 2024 Service cost $ 2 $ 4 Interest cost 7 14 Expected return on plan assets (9) (18) Amortization of unrecognized prior service cost 1 2 Total pension expense $ 1 $ 2 Other nonpension postretirement Quarter ended Year-to-date period ended (millions) June 29, 2024 June 29, 2024 Service cost $ 1 $ 2 Interest cost 6 12 Expected return on plan assets (15) (30) Amortization of unrecognized prior service cost (2) (4) Total postretirement benefit income $ (10) $ (20) For the quarter and year-to-date period ended July 1, 2023, there were no direct pension and nonpension postretirement costs. The following table summarizes the expenses that were allocated to the Company's plans prior to the Spin-Off: Quarter ended Year-to-date period ended (millions) July 1, 2023 July 1, 2023 Pension plan: Shared plans (multiemployer) Cost allocation - COGS $ 2 $ 4 Cost allocation - OIE — — Total pension expense $ 2 $ 4 Nonpension postretirement plan: Shared plans (multiemployer) Cost allocation - COGS $ 1 $ 2 Cost allocation - OIE (10) (20) Total postretirement benefit income $ (9) $ (18) Company contributions to employee benefit plans are summarized as follows: (millions) Pension Nonpension postretirement Total Quarter ended: June 29, 2024 $ 7 $ — $ 7 July 1, 2023 $ — $ — $ — Year-to-date period ended: June 29, 2024 $ 10 $ — $ 10 July 1, 2023 $ — $ — $ — Full year: Fiscal year 2024 (projected) (a) $ 24 $ — $ 24 Fiscal year 2023 (actual) $ — $ — $ — (a) Projected 2024 amounts have been corrected from $0 million as previously disclosed in our 2023 Annual Report to $24 million. Plan funding strategies may be modified in response to management's evaluation of tax deductibility, market conditions, and competing investment alternatives.

Operating leases

Operating leases	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Operating leases	Operating leases The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. The Company recorded operating lease costs of $4 million and $7 million for the quarter and year-to-date period ended June 29, 2024, respectively. Operating lease costs for the quarter and year-to-date period ended July 1, 2023 were immaterial to the consolidated financial statements. Right-of-use assets and liabilities associated with the operating leases are classified in Other assets and Other liabilities, respectively, on the Unaudited Consolidated Balance Sheets. Quarter ended Year-to-date period ended (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3 $ — $ 5 $ — Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 16 $ — $ 52 $ — Modified leases $ — $ — $ — $ — At June 29, 2024 future maturities of operating leases were as follows: (millions) Operating 2024 (remaining) $ 8 2025 16 2026 15 2027 14 2028 13 2029 and beyond 11 Total minimum payments $ 77 Less interest (8) Present value of lease liabilities $ 69 Weighted-average remaining lease term - operating leases 4.7 years Weighted-average discount rate - operating leases 6.7% During the first and second quarters of 2024, the Company entered into lease agreements with unrelated third parties for distribution centers previously leased by Kellanova. The leases were either transferred to the Company or subleased directly from Kellanova as outlined in the Separation and Distribution Agreement. Payments for these leases are made on a monthly basis. Prior to the execution of these leases, use of the distribution centers was managed under the Transition Services Agreement. The new lease agreement executed in the first quarter resulted in an increase to operating lease assets of $34 million, which is recorded within Other assets on the Unaudited Consolidated Balance Sheet. This also resulted in an increase to operating lease liabilities of $34 million, of which $3 million is classified as short-term and included in Other current liabilities and $31 million is classified as long-term, which is included in Other liabilities within the Unaudited Consolidated Balance Sheet. The new sublease agreement executed in the second quarter resulted in an increase to operating lease assets of $14 million, which is recorded within Other assets on the Unaudited Consolidated Balance Sheet. This also resulted in an increase to operating lease liabilities of $14 million, of which $2 million is classified as short-term and included in Other current liabilities and $12 million is classified as long-term, which is included in Other liabilities within the Unaudited Consolidated Balance Sheet.

Income taxes

Income taxes	6 Months Ended
	Jun. 29, 2024
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The Company's consolidated effective tax rate for the quarter and year-to-date period ended June 29, 2024 was 26.8% and 26.4%, respectively. The consolidated effective tax rate for the quarter and year-to-date period ended July 1, 2023 was 23.1% and 23.2%, respectively. The Company's income tax expense is impacted by the level and mix of earnings among tax jurisdictions. The rate differed from the U.S. statutory rate in both periods primarily due to the impact of US state taxes.

Derivative instruments

Derivative instruments	6 Months Ended
	Jun. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instruments	Derivative instruments The Company is exposed to certain market risks such as changes in interest rates, foreign currency exchange rates, and price fluctuations, which exist as a part of its ongoing business operations. Management uses derivative and nonderivative financial and commodity instruments to manage these risks. Instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged. As a matter of policy, the Company does not engage in trading or speculative hedging transactions. Prior to the Spin-Off, the Company participated in Kellanova's hedging program, which uses derivative and nonderivative financial and commodity instruments, including futures, options, and swaps, where appropriate, to manage risks. Since these derivative instruments were entered into and settled by Kellanova for both the Company and Kellanova's other businesses, no asset or liability was recorded on the Company's Unaudited Consolidated Balance Sheets prior to the Spin-Off. However, an appropriate allocation of the gains/losses and fees associated with entering into derivative instruments has been included in the Company's Unaudited Consolidated Statements of Income for each period presented prior to the Spin-Off. After the Spin-Off, the Company has entered into its own derivative instruments. Derivative instruments are classified on the Unaudited Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as Other assets or Other current liabilities on the Unaudited Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Unaudited Consolidated Balance Sheet. On the Unaudited Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. Total notional amounts of the Company’s derivative instruments as of June 29, 2024 and December 30, 2023 were as follows: (millions) June 29, December 30, Foreign currency exchange contracts $ 251 $ — Commodity contracts 77 — Total $ 328 $ — Following is a description of each category in the fair value hierarchy and the financial assets and liabilities of the Company that were included in each category at June 29, 2024 and December 30, 2023, measured on a recurring basis. Level 1 – Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market. For the Company, level 1 financial assets and liabilities consist primarily of commodity derivative contracts. Level 2 – Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. For the Company, level 2 financial assets and liabilities consist of over-the-counter commodity and currency contracts. The Company’s calculation of the fair value of over-the-counter commodity derivatives are valued using an income approach based on the commodity index prices less the contract rate multiplied by the notional amount. Foreign currency contracts are valued using an income approach based on forward rates less the contract rate multiplied by the notional amount. The Company’s calculation of the fair value of level 2 financial assets and liabilities takes into consideration the risk of nonperformance, including counterparty credit risk. The Company does not have any derivatives designated as hedging instruments. The following table presents assets and liabilities that were measured at fair value in the Unaudited Consolidated Balance Sheet on a recurring basis as of June 29, 2024 and December 30, 2023: June 29, 2024 December 30, 2023 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ 1 $ 1 $ — $ — $ — Commodity contracts: Other current liabilities 1 — 1 — — — Total liabilities $ 1 $ 1 $ 2 $ — $ — $ — The effect of derivative instruments on the Company's Unaudited Consolidated Statement of Income for the quarters ended June 29, 2024 and July 1, 2023 was as follows: Gain (loss) recognized in cost of goods sold Gain (loss) recognized in other income (expense), net (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Commodity contracts $ (1) $ (7) $ — $ — Foreign currency derivatives $ (2) $ (1) $ — $ — The effect of derivative instruments on the Company's Unaudited Consolidated Statement of Income for the year-to-date periods ended June 29, 2024 and July 1, 2023 was as follows: Gain (loss) recognized in cost of goods sold Gain (loss) recognized in other income (expense), net (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Commodity contracts $ (1) $ (13) $ — $ — Foreign currency derivatives $ (2) $ 1 $ — $ — Counterparty credit risk concentration and collateral requirements The Company could incur losses in the event of nonperformance by counterparties to over-the-counter (OTC) financial and commodity derivatives contracts. Management believes risk of loss with respect to derivative contracts is limited due to the use of master netting agreements with credit-ratings based collateralization requirements for OTC derivatives and the use of exchange-traded commodity contracts. As of June 29, 2024, the Company was not in a material net asset position with any OTC derivatives counterparties.

Supplemental financial statemen

Supplemental financial statement data	6 Months Ended
	Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental financial statement data	Supplemental financial statement data Unaudited Consolidated Balance Sheet (millions) June 29, 2024 December 30, Trade receivables $ 189 $ 225 Allowance for expected credit losses (1) — Other receivables 29 19 Accounts receivable, net $ 217 $ 244 Raw materials $ 56 $ 49 Manufacturing supplies 55 53 Materials in process 21 15 Finished goods 228 228 Inventories $ 360 $ 345 Property, cost $ 2,701 $ 2,676 Accumulated depreciation (1,953) (1,937) Property, net $ 748 $ 739 Operating lease assets 68 18 Deferred income taxes 13 13 Cloud computing technology 11 17 Other 5 3 Other assets $ 97 $ 51 Other third party 530 502 Kellanova (a) 8 39 Accounts payable $ 538 $ 541 Obligations under Transition Services Agreement 15 52 Operating lease obligations 13 6 Income taxes payable 10 7 Other 65 40 Other current liabilities $ 103 $ 105 Operating lease obligations 56 12 Other 17 13 Other liabilities $ 73 $ 25 (a) The $8 million and $39 million payable to Kellanova represents various items Kellanova paid on our behalf, for which we owe reimbursement for amounts incurred related to the Spin-Off.

Contingencies

Contingencies	6 Months Ended
	Jun. 29, 2024
Loss Contingency [Abstract]
Contingencies	Contingencies The Company is subject to various legal proceedings, claims, and governmental inspections or investigations in the ordinary course of business covering matters such as general commercial, governmental regulations, antitrust and trade regulations, product liability, environmental, intellectual property, workers’ compensation, employment and other actions. These matters are subject to uncertainty and the outcome is not predictable with assurance. The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability and product liability.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 29, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent events On July 31, 2024, the Board of Directors of the Company approved a reorganization plan in connection with the Company’s strategic priority to modernize its supply chain. Under this reorganization plan, the Company will consolidate its manufacturing network by closing its Omaha, Nebraska plant, with a phased reduction in production beginning in late 2025 and full closure targeted by the end of 2026, and scaling back production (which includes a reduction in the number of manufacturing platforms) at its Memphis, Tennessee facility, commencing in late 2025. The reorganization plan was communicated to impacted employees on August 6, 2024 and remains subject to the satisfaction of certain collective bargaining obligations. The actions under the reorganization plan are expected to be substantially completed by the end of fiscal year 2026. These actions are expected to result in cumulative restructuring pretax charges of between $230 and $270 million, including between $30 and $40 million in cash costs for severance and other termination benefits and between $30 and $40 million in other cash restructuring costs related to equipment dismantlement and other transition costs. The Company estimates between $170 and $190 million in non-cash charges related primarily to accelerated depreciation and asset write-offs. These charges are expected to be incurred through 2027. These figures do not include capital expenditures related to the reorganization. The amounts expected to be incurred as a result of these actions, including the timing thereof, are estimates only and subject to a number of assumptions. Actual results may differ materially from the Company’s current expectations. The Company may also incur additional charges or other cash expenditures not currently contemplated due to unanticipated events that may occur as a result of, or associated with, these actions.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Pay vs Performance Disclosure
Net income	$ 31	$ 27	$ 64	$ 53

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 29, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting policies (Policies)

Accounting policies (Policies)	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation On October 2, 2023 ("Spin-Off Date"), Kellanova (formerly known as Kellogg Company) completed the spin-off (the "Spin-Off") of its North American cereal business, resulting in a new independent public company, WK Kellogg Co (the "Company"). P rior to the Spin-Off, the Company historically operated as part of Kellanova. For periods prior to the Spin-Off, the accompanying Unaudited Financial Statements were derived from the consolidated financial statements and accounting records of Kellanova. For all periods subsequent to the Spin-Off, the Unaudited Consolidated Financial Statements are based on actual results as a standalone company. Further information surrounding the Spin-Off and basis of presentation utilized for periods prior to the Spin-Off is included within Note 1 of the Company’s 2023 Annual Report on Form 10-K (the "2023 Annual Report"). In connection with the Spin-Off, the Company entered into several agreements with Kellanova that govern the relationship of the parties following the Spin-Off and allocate between WK Kellogg Co and Kellanova various assets, liabilities, and obligations, including, among other things, employee benefits, intellectual property, and tax related assets and liabilities. The agreements included a Separation and Distribution Agreement, Employee Matters Agreement, Supply Agreement, Master Ownership and License Agreements regarding Patents, Trademarks and Certain Related Intellectual Property, Tax Matters Agreement and Transition Services Agreement. The allocation of expenses from Kellanova to the Company was reflected as follows in the Unaudited Consolidated Statement of Operations for the quarter and year-to-date ended July 1, 2023: Quarter ended Year-to-date period ended (millions) July 1, 2023 July 1, 2023 Cost of goods sold $ 34 $ 89 Selling, general and administrative 89 174 Other (income) expense, net (5) (11) Total $ 118 $ 252 The components of net parent investment for the year-to-date period ended July 1, 2023 were: (millions) July 1, 2023 Net transfers (to)/from Kellanova as reflected in the Unaudited Consolidated Statement of Cash Flow $ (82) Non-cash stock compensation expense 2 Non-cash pension and postretirement benefit (14) Net transfers from/(to) Kellanova as reflected in the Unaudited Consolidated Statement of Changes in Equity $ (94) The accompanying Unaudited Consolidated Financial Statements reflect the results of operations, financial position and cash flows of the Company prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).
Accounts payable - Supplier Finance Programs	Accounts payable - Supplier Finance Programs The Company establishes competitive market-based terms with our suppliers, regardless of whether they participate in supplier finance programs, which generally range from 0 to 135 days depending on their respective industry and geography.
Accounting standards adopted in future periods	Accounting standards to be adopted in future periods Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard requires all public entities that are subject to segment reporting requirements to disclose additional information, including significant segment expenses and other segment items on an annual and interim basis. It also requires the disclosure of the title and the position of the chief operating decision maker and how the reported measures are used for making business decisions. This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company intends to adopt the updated standard for the fiscal year ending December 28, 2024. The Company is currently evaluating the impact the adoption of this standard will have on its disclosures. Income Taxes: Improvements to Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard primarily expands the required disclosures surrounding the rate reconciliation and income taxes paid. For public entities, this standard is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company intends to adopt the updated standard for the fiscal year ending January 3, 2026. The Company is currently evaluating the impact the adoption of this standard will have on its disclosures.

Accounting policies (Tables)

Accounting policies (Tables)	6 Months Ended
	Jun. 29, 2024
Accounting Policies [Abstract]
Schedule of Allocated Expense from Former Parent	The allocation of expenses from Kellanova to the Company was reflected as follows in the Unaudited Consolidated Statement of Operations for the quarter and year-to-date ended July 1, 2023: Quarter ended Year-to-date period ended (millions) July 1, 2023 July 1, 2023 Cost of goods sold $ 34 $ 89 Selling, general and administrative 89 174 Other (income) expense, net (5) (11) Total $ 118 $ 252
Components of Net Parent Investment from Former Parent	The components of net parent investment for the year-to-date period ended July 1, 2023 were: (millions) July 1, 2023 Net transfers (to)/from Kellanova as reflected in the Unaudited Consolidated Statement of Cash Flow $ (82) Non-cash stock compensation expense 2 Non-cash pension and postretirement benefit (14) Net transfers from/(to) Kellanova as reflected in the Unaudited Consolidated Statement of Changes in Equity $ (94)
Disaggregation of Revenue	Disaggregated net sales The following table presents the Company's disaggregated net sales by country: Quarter ended Year-to-date period ended (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 United States $ 588 $ 618 $ 1,212 $ 1,255 Canada 76 72 150 146 Other 8 10 17 19 Total $ 672 $ 700 $ 1,379 $ 1,420

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 29, 2024
Equity [Abstract]
Summary of Accumulated Other Comprehensive Income (Loss)	AOCI as of June 29, 2024 and December 30, 2023 consisted of the following: (millions) June 29, December 30, Foreign currency translation adjustments $ (41) $ (35) Postretirement and postemployment benefits: Prior service credit (cost) 5 7 Total accumulated other comprehensive income (loss) $ (36) $ (28)

Pension and postretirement be_2

Pension and postretirement benefits (Tables)	6 Months Ended
	Jun. 29, 2024
Retirement Benefits [Abstract]
Components of Plan Benefit Expense	The following tables present the pension expense and nonpension postretirement income directly attributable to the Company for the quarter and year-to-date period ended June 29, 2024: Pension Quarter ended Year-to-date period ended (millions) June 29, 2024 June 29, 2024 Service cost $ 2 $ 4 Interest cost 7 14 Expected return on plan assets (9) (18) Amortization of unrecognized prior service cost 1 2 Total pension expense $ 1 $ 2 Other nonpension postretirement Quarter ended Year-to-date period ended (millions) June 29, 2024 June 29, 2024 Service cost $ 1 $ 2 Interest cost 6 12 Expected return on plan assets (15) (30) Amortization of unrecognized prior service cost (2) (4) Total postretirement benefit income $ (10) $ (20)
Multiemployer Plan	The following table summarizes the expenses that were allocated to the Company's plans prior to the Spin-Off: Quarter ended Year-to-date period ended (millions) July 1, 2023 July 1, 2023 Pension plan: Shared plans (multiemployer) Cost allocation - COGS $ 2 $ 4 Cost allocation - OIE — — Total pension expense $ 2 $ 4 Nonpension postretirement plan: Shared plans (multiemployer) Cost allocation - COGS $ 1 $ 2 Cost allocation - OIE (10) (20) Total postretirement benefit income $ (9) $ (18)
Contributions to Employee Benefit Plans	Company contributions to employee benefit plans are summarized as follows: (millions) Pension Nonpension postretirement Total Quarter ended: June 29, 2024 $ 7 $ — $ 7 July 1, 2023 $ — $ — $ — Year-to-date period ended: June 29, 2024 $ 10 $ — $ 10 July 1, 2023 $ — $ — $ — Full year: Fiscal year 2024 (projected) (a) $ 24 $ — $ 24 Fiscal year 2023 (actual) $ — $ — $ — (a) Projected 2024 amounts have been corrected from $0 million as previously disclosed in our 2023 Annual Report to $24 million.

Operating leases (Tables)

Operating leases (Tables)	6 Months Ended
	Jun. 29, 2024
Leases [Abstract]
Schedule Of Supplemental Operating Lease Information	Quarter ended Year-to-date period ended (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3 $ — $ 5 $ — Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 16 $ — $ 52 $ — Modified leases $ — $ — $ — $ —
Operating Lease, Liability, to be Paid, Maturity	At June 29, 2024 future maturities of operating leases were as follows: (millions) Operating 2024 (remaining) $ 8 2025 16 2026 15 2027 14 2028 13 2029 and beyond 11 Total minimum payments $ 77 Less interest (8) Present value of lease liabilities $ 69 Weighted-average remaining lease term - operating leases 4.7 years Weighted-average discount rate - operating leases 6.7%

Derivative instruments (Tables)

Derivative instruments (Tables)	6 Months Ended
	Jun. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Outstanding Derivative Positions	Total notional amounts of the Company’s derivative instruments as of June 29, 2024 and December 30, 2023 were as follows: (millions) June 29, December 30, Foreign currency exchange contracts $ 251 $ — Commodity contracts 77 — Total $ 328 $ —
Schedule of Derivative Assets at Fair Value	The following table presents assets and liabilities that were measured at fair value in the Unaudited Consolidated Balance Sheet on a recurring basis as of June 29, 2024 and December 30, 2023: June 29, 2024 December 30, 2023 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ 1 $ 1 $ — $ — $ — Commodity contracts: Other current liabilities 1 — 1 — — — Total liabilities $ 1 $ 1 $ 2 $ — $ — $ —
Schedule of Derivative Liabilities at Fair Value	The following table presents assets and liabilities that were measured at fair value in the Unaudited Consolidated Balance Sheet on a recurring basis as of June 29, 2024 and December 30, 2023: June 29, 2024 December 30, 2023 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ 1 $ 1 $ — $ — $ — Commodity contracts: Other current liabilities 1 — 1 — — — Total liabilities $ 1 $ 1 $ 2 $ — $ — $ —
Schedule of the Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income	The effect of derivative instruments on the Company's Unaudited Consolidated Statement of Income for the quarters ended June 29, 2024 and July 1, 2023 was as follows: Gain (loss) recognized in cost of goods sold Gain (loss) recognized in other income (expense), net (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Commodity contracts $ (1) $ (7) $ — $ — Foreign currency derivatives $ (2) $ (1) $ — $ — The effect of derivative instruments on the Company's Unaudited Consolidated Statement of Income for the year-to-date periods ended June 29, 2024 and July 1, 2023 was as follows: Gain (loss) recognized in cost of goods sold Gain (loss) recognized in other income (expense), net (millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Commodity contracts $ (1) $ (13) $ — $ — Foreign currency derivatives $ (2) $ 1 $ — $ —

Supplemental financial statem_2

Supplemental financial statement data (Tables)	6 Months Ended
	Jun. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Financial Data Consolidated Balance Sheet	(millions) June 29, 2024 December 30, Trade receivables $ 189 $ 225 Allowance for expected credit losses (1) — Other receivables 29 19 Accounts receivable, net $ 217 $ 244 Raw materials $ 56 $ 49 Manufacturing supplies 55 53 Materials in process 21 15 Finished goods 228 228 Inventories $ 360 $ 345 Property, cost $ 2,701 $ 2,676 Accumulated depreciation (1,953) (1,937) Property, net $ 748 $ 739 Operating lease assets 68 18 Deferred income taxes 13 13 Cloud computing technology 11 17 Other 5 3 Other assets $ 97 $ 51 Other third party 530 502 Kellanova (a) 8 39 Accounts payable $ 538 $ 541 Obligations under Transition Services Agreement 15 52 Operating lease obligations 13 6 Income taxes payable 10 7 Other 65 40 Other current liabilities $ 103 $ 105 Operating lease obligations 56 12 Other 17 13 Other liabilities $ 73 $ 25 (a) The $8 million and $39 million payable to Kellanova represents various items Kellanova paid on our behalf, for which we owe reimbursement for amounts incurred related to the Spin-Off.

Accounting policies - Allocatio

Accounting policies - Allocation of Expenses from Parent (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost of goods sold	$ 476	$ 509	$ 980	$ 1,048
Selling, general and administrative expense	$ 149	163	$ 306	318
Kellanova
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost of goods sold		34		89
Selling, general and administrative expense		89		174
Other (income) expense, net		(5)		(11)
Total		$ 118		$ 252

Accounting policies -Components

Accounting policies -Components of net parent investment (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Stock compensation		$ 6	$ 2
Pension and postretirement plan benefit		$ 18	13
Net transfer (to)/from Kellanova	$ (52)		(94)
Kellanova
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Net transfers (to) from Kellanova			(82)
Stock compensation			2
Pension and postretirement plan benefit			(14)
Net transfer (to)/from Kellanova			$ (94)

Accounting policies - Narrative

Accounting policies - Narrative (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier finance program, obligation	$ 158	$ 142
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier finance program general payment timing, period	0 days
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplier finance program general payment timing, period	135 days

Accounting policies - Disaggreg

Accounting policies - Disaggregated net sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 672	$ 700	$ 1,379	$ 1,420
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	588	618	1,212	1,255
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	76	72	150	146
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 8	$ 10	$ 17	$ 19

Sale of accounts receivable (De

Sale of accounts receivable (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Transfer of Financial Assets Accounted for as Sales [Line Items]
Transfers of accounts receivable agreements	$ 350		$ 350
Restricted cash	16		16		$ 13
Other income (expense)
Transfer of Financial Assets Accounted for as Sales [Line Items]
Gain (loss) on sale of accounts receivable	5	$ 4	9	$ 8
Sold And Outstanding
Transfer of Financial Assets Accounted for as Sales [Line Items]
Transfer of financial assets accounted for as sales, amount derecognized	$ 313		$ 313		$ 266

Equity - Narrative (Details)

Equity - Narrative (Details) - shares		3 Months Ended
	Oct. 02, 2023	Jun. 29, 2024
Equity [Abstract]
Weighted average number of shares outstanding, diluted, adjustment (in shares)		2,000,000
Anti-dilutive potential common shares excluded from reconciliation (in shares)		0
Stock issued during period, new issues (in shares)	85,631,304

Equity - Summary of Accumulated

Equity - Summary of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	$ (41)	$ (35)
Postretirement and postemployment benefits:
Prior service credit (cost)	5	7
Total accumulated other comprehensive income (loss)	$ (36)	$ (28)

Pension and postretirement be_3

Pension and postretirement benefits - Components of Plan Benefit Expense (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 29, 2024	Jun. 29, 2024	Oct. 01, 2023
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2	$ 4	$ 0
Interest cost	7	14
Expected return on plan assets	(9)	(18)
Amortization of unrecognized prior service cost	1	2
Total pension expense	1	2
Nonpension postretirement
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	2	$ 0
Interest cost	6	12
Expected return on plan assets	(15)	(30)
Amortization of unrecognized prior service cost	(2)	(4)
Total pension expense	$ (10)	$ (20)

Pension and postretirement be_4

Pension and postretirement benefits - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 29, 2024	Jun. 29, 2024	Oct. 01, 2023
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2	$ 4	$ 0
Nonpension postretirement
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 2	$ 0

Pension and postretirement be_5

Pension and postretirement benefits - Components of Plan Benefit Expense (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 01, 2023	Jul. 01, 2023
Pension
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan, Employer Contribution, Cost (Credit)	$ 2	$ 4
Nonpension postretirement
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan, Employer Contribution, Cost (Credit)	(9)	(18)
Gain (loss) recognized in cost of goods sold | Pension
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan, Employer Contribution, Cost (Credit)	2	4
Gain (loss) recognized in cost of goods sold | Nonpension postretirement
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan, Employer Contribution, Cost (Credit)	1	2
Gain (loss) recognized in other income (expense), net | Pension
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan, Employer Contribution, Cost (Credit)	0	0
Gain (loss) recognized in other income (expense), net | Nonpension postretirement
Defined Benefit Plan Disclosure [Line Items]
Multiemployer Plan, Employer Contribution, Cost (Credit)	$ (10)	$ (20)

Pension and postretirement be_6

Pension and postretirement benefits - Contributions to Employee Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 29, 2024	Mar. 30, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Employer contributions to employee benefit plans	$ 7	$ 0	$ 0	$ 10	$ 0
Total current year projected employer contributions	24			24
Expected future employer contributions, next fiscal year						$ 24
Previously Reported
Defined Benefit Plan Disclosure [Line Items]
Expected future employer contributions, next fiscal year						$ 0
Pension
Defined Benefit Plan Disclosure [Line Items]
Employer contributions to employee benefit plans	7	0	0	10	0
Total current year projected employer contributions	24			24
Nonpension postretirement
Defined Benefit Plan Disclosure [Line Items]
Employer contributions to employee benefit plans	0	$ 0	$ 0	0	$ 0
Total current year projected employer contributions	$ 0			$ 0

Operating leases - Supplemental

Operating leases - Supplemental Operating Leases Information Table (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Lessee, Lease, Description [Line Items]
Operating cash flows from operating leases	$ 3	$ 0	$ 5	$ 0
New leases
Right-of-use assets obtained in exchange for operating lease liabilities
Right-of-use assets obtained in exchange for operating lease liabilities	16	0	52	0
Modified leases
Right-of-use assets obtained in exchange for operating lease liabilities
Right-of-use assets obtained in exchange for operating lease liabilities	$ 0	$ 0	$ 0	$ 0

Operating leases - Operating Le

Operating leases - Operating Leases Future Maturities Table (Details) $ in Millions	Jun. 29, 2024 USD ($)
Leases [Abstract]
2024 (remaining)	$ 8
2025	16
2026	15
2027	14
2028	13
2029 and beyond	11
Total minimum payments	77
Less interest	(8)
Present value of lease liabilities	$ 69
Weighted-average remaining lease term - operating leases	4 years 8 months 12 days
Weighted-average discount rate - operating leases	6.70%

Operating leases - Narrative (D

Operating leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 29, 2024	Mar. 30, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023	Dec. 30, 2023
Lessee, Lease, Description [Line Items]
Lease, cost	$ 4		$ 0	$ 7	$ 0
Operating lease, liability	69			69
Operating lease, liability, current	13			13		$ 6
Operating lease obligations	56			56		$ 12
Distribution Center One
Lessee, Lease, Description [Line Items]
Right-of-use assets obtained in exchange for operating lease liabilities		$ 34
Operating lease, liability		34
Operating lease, liability, current		3
Operating lease obligations		$ 31
Distribution Center Two
Lessee, Lease, Description [Line Items]
Right-of-use assets obtained in exchange for operating lease liabilities	14
Operating lease, liability	14			14
Operating lease, liability, current	2			2
Operating lease obligations	$ 12			$ 12

Income taxes (Details)

Income taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	26.80%	23.10%	26.40%	23.20%

Derivative instruments - Total

Derivative instruments - Total Notional Amounts Of Derivative Instruments (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative	$ 328	$ 0
Foreign currency derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative	251	0
Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount of derivative	$ 77	$ 0

Derivative instruments - Fair V

Derivative instruments - Fair Value, Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	$ 2	$ 0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	1	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	1	0
Foreign currency derivatives
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current liabilities	1	0
Foreign currency derivatives | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current liabilities	0	0
Foreign currency derivatives | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current liabilities	1	0
Commodity contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current liabilities	1	0
Commodity contracts | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current liabilities	1	0
Commodity contracts | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other current liabilities	$ 0	$ 0

Derivative instruments - Effect

Derivative instruments - Effect Of Derivative Instruments On Statement Of Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 29, 2024	Jul. 01, 2023	Jun. 29, 2024	Jul. 01, 2023
Commodity contracts | Gain (loss) recognized in cost of goods sold
Derivatives, Fair Value [Line Items]
Gain (loss) recognized in income	$ (1)	$ (7)	$ (1)	$ (13)
Commodity contracts | Gain (loss) recognized in other income (expense), net
Derivatives, Fair Value [Line Items]
Gain (loss) recognized in income	0	0	0	0
Foreign currency derivatives | Gain (loss) recognized in cost of goods sold
Derivatives, Fair Value [Line Items]
Gain (loss) recognized in income	(2)	(1)	(2)	1
Foreign currency derivatives | Gain (loss) recognized in other income (expense), net
Derivatives, Fair Value [Line Items]
Gain (loss) recognized in income	$ 0	$ 0	$ 0	$ 0

Supplemental financial statem_3

Supplemental financial statement data - (Details) - USD ($) $ in Millions	Jun. 29, 2024	Dec. 30, 2023
Condensed Financial Statements, Captions [Line Items]
Trade receivables	$ 189	$ 225
Allowance for expected credit losses	(1)	0
Other receivables	29	19
Accounts receivable, net	217	244
Raw materials	56	49
Manufacturing supplies	55	53
Materials in process	21	15
Finished goods	228	228
Inventories	360	345
Property, cost	2,701	2,676
Accumulated depreciation	(1,953)	(1,937)
Property, net	748	739
Operating lease assets	68	18
Deferred income taxes	13	13
Cloud computing technology	11	17
Other	5	3
Other assets	97	51
Accounts payable	538	541
Obligations under Transition Services Agreement	15	52
Operating lease obligations	13	6
Income taxes payable	10	7
Other	65	40
Other current liabilities	103	105
Operating lease obligations	56	12
Other	17	13
Other liabilities	73	25
Other Counterparty
Condensed Financial Statements, Captions [Line Items]
Accounts payable	530	502
Kellanova
Condensed Financial Statements, Captions [Line Items]
Accounts payable	$ 8	$ 39

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event $ in Millions	Jul. 31, 2024 USD ($)
Minimum
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	$ 230
Minimum | Employee Severance
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	30
Minimum | Other Restructuring
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	30
Minimum | Accelerated Depreciation And Asset Write Offs
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	170
Maximum
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	270
Maximum | Employee Severance
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	40
Maximum | Other Restructuring
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	40
Maximum | Accelerated Depreciation And Asset Write Offs
Subsequent Event [Line Items]
Restructuring and related cost, expected cost	$ 190