Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 26, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Entity Registrant Name | 'KELLOGG CO | ' |
Entity Central Index Key | '0000055067 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Common Stock, Shares Outstanding | ' | 362,197,285 |
Consolidated_Balance_Sheet_Una
Consolidated Balance Sheet (Unaudited) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Millions, unless otherwise specified | |||
Current assets | ' | ' | |
Cash and cash equivalents | $300 | $281 | [1] |
Accounts receivable, net | 1,474 | 1,454 | [1] |
Inventories: | ' | ' | |
Raw materials and supplies | 331 | 300 | [1] |
Finished goods and materials in process | 981 | 1,065 | [1] |
Deferred income taxes | 185 | 152 | [1] |
Other prepaid assets | 163 | 128 | [1] |
Total current assets | 3,434 | 3,380 | [1] |
Property, net of accumulated depreciation of $5,387 and $5,209 | 3,777 | 3,782 | [1] |
Goodwill | 5,052 | 5,038 | [1],[2] |
Other intangibles, net of accumulated amortization of $59 and $53 | 2,364 | 2,359 | [1] |
Pension | 187 | 145 | [1] |
Other assets | 406 | 465 | [1] |
Total assets | 15,220 | 15,169 | [1] |
Current liabilities | ' | ' | |
Current maturities of long-term debt | 298 | 755 | [1] |
Notes payable | 756 | 1,065 | [1] |
Accounts payable | 1,399 | 1,402 | [1] |
Accrued advertising and promotion | 512 | 517 | [1] |
Accrued income taxes | 75 | 46 | [1] |
Accrued salaries and wages | 257 | 266 | [1] |
Other current liabilities | 537 | 472 | [1] |
Total current liabilities | 3,834 | 4,523 | [1] |
Long-term debt | 6,348 | 6,082 | [1] |
Deferred income taxes | 560 | 523 | [1] |
Pension liability | 886 | 886 | [1] |
Nonpension postretirement benefits | 271 | 281 | [1] |
Other liabilities | 425 | 409 | [1] |
Commitments and contingencies | ' | ' | [1] |
Equity | ' | ' | |
Common stock, $.25 par value | 105 | 105 | [1] |
Capital in excess of par value | 620 | 573 | [1] |
Retained earnings | 6,098 | 5,615 | [1] |
Treasury stock, at cost | -3,025 | -2,943 | [1] |
Accumulated other comprehensive income (loss) | -963 | -946 | [1],[2] |
Total Kellogg Company equity | 2,835 | 2,404 | [1] |
Noncontrolling interests | 61 | 61 | [1] |
Total equity | 2,896 | 2,465 | [1] |
Total liabilities and equity | $15,220 | $15,169 | [1] |
[1] | Condensed from audited financial statements. | ||
[2] | December 29, 2012 balances have been revised as discussed in Note 2 to the financial statements. |
Consolidated_Balance_Sheet_Una1
Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Millions, except Per Share data, unless otherwise specified | |||
Consolidated Balance Sheet | ' | ' | |
Property, accumulated depreciation | $5,387 | $5,209 | [1] |
Other intangibles, accumulated amortization | $59 | $53 | [1] |
Common stock, par value | $0.25 | $0.25 | [1] |
[1] | Condensed from audited financial statements. |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||
Consolidated Statement of Income | ' | ' | ' | ' | ||
Net sales | $3,716 | $3,720 | $11,291 | $10,634 | ||
Cost of goods sold | 2,266 | 2,254 | 6,971 | 6,376 | ||
Selling, general and administrative expense | 946 | 953 | 2,743 | 2,699 | ||
Operating profit | 504 | 513 | 1,577 | 1,559 | ||
Interest expense | 56 | 73 | 177 | 195 | ||
Other income (expense), net | 4 | 10 | -8 | 30 | ||
Income before income taxes | 452 | 450 | 1,392 | 1,394 | ||
Income taxes | 124 | 131 | 398 | 400 | ||
Earnings (loss) from joint ventures | -2 | -1 | -5 | -1 | ||
Net income | 326 | 318 | 989 | 993 | ||
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net income attributable to Kellogg Company | $326 | $318 | [1] | $989 | $993 | [1] |
Per share amounts: | ' | ' | ' | ' | ||
Basic | $0.90 | $0.89 | [1] | $2.72 | $2.78 | [1] |
Diluted | $0.90 | $0.89 | [1] | $2.70 | $2.77 | [1] |
Dividends per share | $0.46 | $0.44 | $1.34 | $1.30 | ||
Average shares outstanding: | ' | ' | ' | ' | ||
Basic | 362 | 358 | 363 | 357 | ||
Diluted | 364 | 359 | 366 | 359 | ||
Actual shares outstanding at period end | 362 | 358 | 362 | 358 | ||
[1] | 2012 amounts have been revised as discussed in Note 7 to the financial statements. |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | ||||
Consolidated Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ||||
Net income | $326 | $318 | $989 | $993 | $961 | ||||
Other comprehensive income, pre-tax: | ' | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, pre-tax | 63 | 101 | [1] | -28 | [1] | 75 | [1] | ' | |
Cash flow hedges, pre-tax: | ' | ' | ' | ' | ' | ||||
Unrealized gain (loss) on cash flow hedges, pre-tax | -7 | -1 | 5 | -9 | ' | ||||
Reclassification to net income, pre-tax | -2 | 3 | -4 | 12 | ' | ||||
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | ' | ' | ' | ' | ' | ||||
Net experience gain (loss), pre-tax | 0 | 0 | [1] | 0 | -3 | [1] | ' | ||
Prior service credit (cost), pre-tax | -1 | 0 | [1] | -1 | -10 | [1] | ' | ||
Postretirement and postemployment benefits reclassification to net income, pre-tax: | ' | ' | ' | ' | ' | ||||
Net experience loss, pre-tax | 1 | 2 | [1] | 4 | 4 | [1] | ' | ||
Prior service cost, pre-tax | 4 | 2 | [1] | 10 | 9 | [1] | ' | ||
Other comprehensive income (loss), pre-tax | 58 | 107 | -14 | 78 | ' | ||||
Other comprehensive income (loss), tax (expense) or benefit | ' | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, tax (expense) or benefit | 0 | 0 | 0 | 2 | ' | ||||
Cash flow hedges, tax effect: | ' | ' | ' | ' | ' | ||||
Unrealized gain (loss) on cash flow hedges, tax (expense) or benefit | 3 | 0 | 0 | 3 | ' | ||||
Reclassification to net earnings - tax (expense) or benefit | 0 | -1 | 0 | -4 | ' | ||||
Postretirement and postemployment benefit amounts arising during the period, tax effect: | ' | ' | ' | ' | ' | ||||
Net experience gain (loss), tax (expense) or benefit | 0 | 0 | [1] | 0 | 1 | [1] | ' | ||
Prior service credit (cost), tax (expense) or benefit | 0 | 0 | [1] | 0 | 3 | [1] | ' | ||
Postretirement and postemployment benefits reclassification to net income, tax effect: | ' | ' | ' | ' | ' | ||||
Net experience loss, tax (expense) or benefit | 0 | 0 | [1] | 0 | 0 | [1] | ' | ||
Prior service cost, tax (expense) or benefit | -1 | -1 | [1] | -3 | -3 | [1] | ' | ||
Other comprehensive income (loss), tax (expense) or benefit | 2 | -2 | -3 | 2 | ' | ||||
Other comprehensive income (loss), after tax | ' | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, after-tax | 63 | 101 | [1] | -28 | [1] | 77 | [1] | ' | |
Cash flow hedges, after-tax: | ' | ' | ' | ' | ' | ||||
Unrealized gain (loss) on cash flow hedges, after-tax | -4 | -1 | 5 | -6 | ' | ||||
Reclassification to net income, after-tax | -2 | 2 | -4 | 8 | ' | ||||
Postretirement and postemployment benefit amounts arising during the period, after-tax: | ' | ' | ' | ' | ' | ||||
Net experience gain (loss), after-tax | 0 | 0 | [1] | 0 | -2 | [1] | ' | ||
Prior service credit (cost), after-tax | -1 | 0 | [1] | -1 | -7 | [1] | ' | ||
Postretirement and postemployment benefits reclassification to net income, after-tax: | ' | ' | ' | ' | ' | ||||
Net experience loss, after-tax | 1 | 2 | [1] | 4 | 4 | [1] | ' | ||
Prior service cost, after-tax | 3 | 1 | [1] | 7 | 6 | [1] | ' | ||
Other comprehensive income, after-tax | 60 | 105 | -17 | [2] | 80 | 60 | [2] | ||
Comprehensive income | $386 | $423 | $972 | $1,073 | ' | ||||
[1] | Amounts have been revised as discussed in Note 2 and Note 7 to the financial statements. | ||||||||
[2] | December 29, 2012 balances have been revised as discussed in Note 2 to the financial statements. |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Kellogg Company Equity [Member] | Noncontrolling Interests [Member] | Total Comprehensive Income (Loss) [Member] | |||
In Millions | ||||||||||||
Balance, value at Dec. 31, 2011 | $1,798 | $105 | $522 | $5,305 | ($3,130) | ($1,006) | $1,796 | $2 | ' | |||
Balance, shares at Dec. 31, 2011 | ' | 419 | ' | ' | 62 | ' | ' | ' | ' | |||
Common stock repurchases, shares | ' | ' | ' | ' | 1 | ' | ' | ' | ' | |||
Common stock repurchases, value | -63 | ' | ' | ' | -63 | ' | -63 | ' | ' | |||
Acquisition of noncontrolling interest | 59 | ' | ' | ' | ' | ' | 0 | 59 | ' | |||
Net income (loss) | 961 | ' | ' | 961 | ' | ' | 961 | 0 | 961 | |||
Dividends | -622 | ' | ' | -622 | ' | ' | -622 | ' | ' | |||
Other comprehensive income (loss) | [1] | 60 | ' | ' | ' | ' | 60 | 60 | ' | 60 | ||
Stock compensation | 36 | ' | 36 | ' | ' | ' | 36 | ' | ' | |||
Stock options exercised and other, shares | ' | 1 | ' | ' | -5 | ' | ' | ' | ' | |||
Stock options exercised and other, value | 236 | ' | 15 | -29 | 250 | ' | 236 | ' | ' | |||
Balance, value at Dec. 29, 2012 | 2,465 | [2] | 105 | 573 | 5,615 | -2,943 | -946 | [1] | 2,404 | 61 | 1,021 | |
Balance, shares at Dec. 29, 2012 | ' | 420 | ' | ' | 58 | ' | ' | ' | ' | |||
Common stock repurchases, shares | 9 | ' | ' | ' | 9 | ' | ' | ' | ' | |||
Common stock repurchases, value | -544 | ' | ' | ' | -544 | ' | -544 | ' | ' | |||
Net income (loss) | 989 | ' | ' | 989 | ' | ' | 989 | ' | 989 | |||
Dividends | -486 | ' | ' | -486 | ' | ' | -486 | ' | ' | |||
Other comprehensive income (loss) | [1] | -17 | ' | ' | ' | ' | -17 | -17 | ' | -17 | ||
Stock compensation | 24 | ' | 24 | ' | ' | ' | 24 | ' | ' | |||
Stock options exercised and other, shares | ' | ' | ' | ' | -9 | ' | ' | ' | ' | |||
Stock options exercised and other, value | 465 | ' | 23 | -20 | 462 | ' | 465 | ' | ' | |||
Balance, value at Sep. 28, 2013 | $2,896 | $105 | $620 | $6,098 | ($3,025) | ($963) | $2,835 | $61 | $972 | |||
Balance, shares at Sep. 28, 2013 | ' | 420 | ' | ' | 58 | ' | ' | ' | ' | |||
[1] | December 29, 2012 balances have been revised as discussed in Note 2 to the financial statements. | |||||||||||
[2] | Condensed from audited financial statements. |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | |
Operating activities | ' | ' | |
Net income | $989 | $993 | |
Adjustments to reconcile net income to operating cash flows: | ' | ' | |
Depreciation and amortization | 340 | 302 | |
Postretirement benefit plan expense (benefit) | -10 | -14 | |
Deferred income taxes | -27 | -20 | |
Other | 73 | -29 | |
Postretirement benefit plan contributions | -42 | -43 | |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' | |
Trade receivables | -113 | -95 | |
Inventories | 52 | -5 | |
Accounts payable | -2 | 145 | |
Accrued income taxes | 52 | 1 | |
Accrued interest expense | 33 | 43 | |
Accrued and prepaid advertising, promotion and trade allowances | -4 | 118 | |
Accrued salaries and wages | -9 | 0 | |
All other current assets and liabilities | 57 | -21 | |
Net cash provided by (used in) operating activities | 1,389 | 1,375 | |
Investing activities | ' | ' | |
Additions to properties | -363 | -262 | |
Acquisitions, net of cash acquired | 0 | -2,674 | |
Other | -1 | 8 | |
Net cash provided by (used in) investing activities | -364 | -2,928 | |
Financing activities | ' | ' | |
Net issuances (reductions) of notes payable | -309 | 112 | |
Issuances of long-term debt | 645 | 1,727 | |
Reductions of long-term debt | -761 | 0 | |
Net issuances of common stock | 450 | 87 | |
Common stock repurchases | -544 | -63 | |
Cash dividends | -486 | -464 | |
Other | 23 | -2 | |
Net cash provided by (used in) financing activities | -982 | 1,397 | |
Effect of exchange rate changes on cash and cash equivalents | -24 | 1 | |
Increase (decrease) in cash and cash equivalents | 19 | -155 | |
Cash and cash equivalents at beginning of period | 281 | [1] | 460 |
Cash and cash equivalents at end of period | $300 | $305 | |
[1] | Condensed from audited financial statements. |
Accounting_Policies
Accounting Policies | 9 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Accounting Policies [Text Block] | ' |
Note 1 Accounting policies | |
Basis of presentation | |
The unaudited interim financial information of Kellogg Company (the Company) included in this report reflects normal recurring adjustments 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 Company's 2012 Annual Report on Form 10-K. | |
The condensed balance sheet data at December 29, 2012 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the quarterly period ended September 28, 2013 are not necessarily indicative of the results to be expected for other interim periods or the full year. | |
New accounting standards | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the Financial Accounting Standards Board (FASB) issued an updated accounting standard that includes a requirement to present reclassification adjustments out of accumulated other comprehensive income by component either on the face of the financial statements or as a separate disclosure in the notes to the financial statements. This updated standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012 and was adopted by the Company on a prospective basis at the beginning of its 2013 fiscal year. Refer to Note 4 for disclosures required under this standard. | |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangible Assets [Abstract] | ' | |||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangibles [Text Block] | ' | |||||||||||||||||||||||
Note 2 Goodwill and other intangible assets | ||||||||||||||||||||||||
On May 31, 2012, the Company completed its acquisition of the Pringles® business (Pringles) from The Procter & Gamble Company (P&G) for $2.695 billion, or $2.683 billion net of cash and cash equivalents, subject to certain purchase price adjustments. The net purchase price adjustments have resulted in a reduction of the purchase price by approximately $15 million. The purchase price, net of cash and cash equivalents, totals $2.668 billion. The acquisition was accounted for under the purchase method and was financed through a combination of cash on hand and short-term and long-term debt. The assets and liabilities of Pringles are included in the Consolidated Balance Sheet as of December 29, 2012 and September 28, 2013 and the results of the Pringles operations subsequent to the acquisition date are included in the Consolidated Statement of Income. | ||||||||||||||||||||||||
The purchase price allocation, including the allocation to reportable segments, was completed in the quarter ended June 29, 2013 when the valuations of fixed assets and intangible assets were finalized resulting in a reallocation of goodwill between the Company's reportable segments. Prior year amounts were revised to reflect these changes as of the date of the acquisition, resulting in reductions to goodwill and the foreign currency translation component of other comprehensive income (OCI) of $15 million as of December 29, 2012 and no impact for the year-to-date period ended September 29, 2012. | ||||||||||||||||||||||||
During the quarter ended September 28, 2013, the Company recorded an immaterial correction of an error to the purchase price allocation for Pringles that was outside of the measurement period, which resulted in an increase to other non-current liabilities, goodwill and non-current deferred tax assets of $15 million, $13 million and $2 million, respectively. The goodwill of $13 million was allocated to our operating segments as follows: Europe, $10 million and Asia Pacific, $3 million. | ||||||||||||||||||||||||
As part of the Pringles acquisition, we incurred $12 million of integration-related costs in the third quarter of 2013 of which $7 million are recorded in selling, general and administrative (SGA) expense, $3 million are recorded in cost of goods sold (COGS), and $2 million are recorded in net sales. Integration-related costs in the year-to-date period ended September 28, 2013 were $48 million of which $34 million are recorded in SGA expense, $9 million are recorded in COGS and $5 million are recorded in net sales. | ||||||||||||||||||||||||
Pringles contributed net revenues of $422 million and net earnings of $49 million for the third quarter of 2013 and contributed net revenues of $1,216 million and net earnings of $97 million for the year-to-date period ended September 28, 2013, including the integration-related costs discussed above. The unaudited pro forma combined historical third quarter results, as if Pringles had been acquired at the beginning of fiscal 2011, are estimated to be: | ||||||||||||||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||||||||||||||
September 29, | September 29, | |||||||||||||||||||||||
(millions, except per share data) | 2012 | 2012 | ||||||||||||||||||||||
Net sales | $ | 3,720 | $ | 11,299 | ||||||||||||||||||||
Net income | $ | 318 | $ | 1,041 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | - | - | ||||||||||||||||||||||
Net income attributable to Kellogg Company | $ | 318 | $ | 1,041 | ||||||||||||||||||||
Net earnings per share | $ | 0.89 | $ | 2.9 | ||||||||||||||||||||
The pro forma results include interest expense on the debt issued to finance the acquisition, amortization of the definite lived intangible assets, and depreciation based on estimated fair value and useful lives. The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of 2011, nor are they necessarily indicative of future consolidated results. | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill for the year-to-date period ended September 28, 2013, are presented in the following table. | ||||||||||||||||||||||||
Carrying amount of goodwill | ||||||||||||||||||||||||
U.S. | North | |||||||||||||||||||||||
Morning | U.S. | U.S. | America | Latin | Asia | Consoli- | ||||||||||||||||||
(millions) | Foods | Snacks | Specialty | Other | Europe | America | Pacific | dated | ||||||||||||||||
29-Dec-12 | $ | 133 | $ | 3,767 | $ | 82 | $ | 280 | $ | 438 | $ | 92 | $ | 246 | $ | 5,038 | ||||||||
Additions | - | 11 | - | - | 10 | - | 3 | 24 | ||||||||||||||||
Currency translation adjustment | - | - | - | -1 | 1 | -2 | -8 | -10 | ||||||||||||||||
28-Sep-13 | $ | 133 | $ | 3,778 | $ | 82 | $ | 279 | $ | 449 | $ | 90 | $ | 241 | $ | 5,052 | ||||||||
Intangible assets subject to amortization | ||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||
U.S. | North | |||||||||||||||||||||||
Morning | U.S. | U.S. | America | Latin | Asia | Consoli- | ||||||||||||||||||
Gross carrying amount | Foods | Snacks | Specialty | Other | Europe | America | Pacific | dated | ||||||||||||||||
29-Dec-12 | $ | 28 | $ | 70 | $ | - | $ | 5 | $ | 43 | $ | 7 | $ | 10 | $ | 163 | ||||||||
Currency translation adjustment | - | - | - | - | - | - | - | - | ||||||||||||||||
28-Sep-13 | $ | 28 | $ | 70 | $ | - | $ | 5 | $ | 43 | $ | 7 | $ | 10 | $ | 163 | ||||||||
Accumulated Amortization | ||||||||||||||||||||||||
29-Dec-12 | $ | 28 | $ | 12 | $ | - | $ | 3 | $ | 3 | $ | 7 | $ | - | $ | 53 | ||||||||
Amortization | - | 3 | - | - | 2 | - | 1 | 6 | ||||||||||||||||
28-Sep-13 | $ | 28 | $ | 15 | $ | - | $ | 3 | $ | 5 | $ | 7 | $ | 1 | $ | 59 | ||||||||
Intangible assets subject to amortization, net | ||||||||||||||||||||||||
29-Dec-12 | $ | - | $ | 58 | $ | - | $ | 2 | $ | 40 | $ | - | $ | 10 | $ | 110 | ||||||||
Currency translation adjustment | - | - | - | - | - | - | - | - | ||||||||||||||||
Amortization | - | -3 | - | - | -2 | - | -1 | -6 | ||||||||||||||||
28-Sep-13 | $ | - | $ | 55 | $ | - | $ | 2 | $ | 38 | $ | - | $ | 9 | $ | 104 | ||||||||
For intangible assets in the preceding table, amortization was $6 million for the current year-to-date period ended September 28, 2013, compared to $1 million for the prior year-to-date period ended September 29, 2012. The currently estimated aggregate annual amortization expense for full-year 2013 and each of the four succeeding fiscal years is approximately $9 million. | ||||||||||||||||||||||||
Intangible assets not subject to amortization | ||||||||||||||||||||||||
U.S. | North | |||||||||||||||||||||||
Morning | U.S. | U.S. | America | Latin | Asia | Consoli- | ||||||||||||||||||
(millions) | Foods | Snacks | Specialty | Other | Europe | America | Pacific | dated | ||||||||||||||||
29-Dec-12 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 466 | $ | - | $ | - | $ | 2,249 | ||||||||
Currency translation adjustment | - | - | - | - | 11 | - | - | 11 | ||||||||||||||||
28-Sep-13 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 477 | $ | - | $ | - | $ | 2,260 | ||||||||
Exit_or_Disposal_Activities
Exit or Disposal Activities | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Exit or Disposal Activities [Abstract] | ' | |||||||||||
Exit or Disposal Activities [Text Block] | ' | |||||||||||
Note 3 Exit or disposal activities | ||||||||||||
The Company views its continued spending on cost-reduction initiatives as part of its on-going operating principles to provide greater visibility in achieving long-term profit growth targets. Initiatives undertaken are expected to recover cash implementation costs within a five-year period of completion. Upon completion (or as each major stage is completed in the case of multi-year programs), the project is expected to deliver cash savings and/or reduced depreciation. | ||||||||||||
Costs summary | ||||||||||||
On-going initiatives | ||||||||||||
Prior to the beginning of the quarter ended September 28, 2013, the Company had commenced various COGS and SGA initiatives. The COGS initiatives are intended to optimize the Company's global manufacturing network, reduce waste, and develop best practices on a global basis. The SGA initiatives focus on improvements in the efficiency and effectiveness of various global support functions. These initiatives are expected to be substantially complete by the end of 2013. | ||||||||||||
During the quarter ended September 28, 2013, the Company recorded a $1 million reduction in expense resulting from adjustments to severance reserves related to one of these on-going initiatives which impacted the U.S. Morning Foods reportable segment. During the year-to-date period ended September 28, 2013, the Company recorded $9 million of charges associated with exit or disposal activities for on-going initiatives. The tables below provide the details for the charges incurred for currently active on-going initiatives during the quarter and year-to-date periods ended September 28, 2013 and September 29, 2012: | ||||||||||||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | |||||||
Employee related costs | $ | -1 | $ | - | $ | 3 | $ | 3 | $ | 6 | ||
Asset related costs | - | 1 | 4 | 2 | 21 | |||||||
Other costs | - | - | 2 | - | 2 | |||||||
Total | $ | -1 | $ | 1 | $ | 9 | $ | 5 | $ | 29 | ||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | |||||||
U.S. Morning Foods | $ | -1 | $ | - | $ | 2 | $ | 1 | $ | 3 | ||
U.S. Snacks | - | 1 | 1 | 3 | 3 | |||||||
Europe | - | - | - | 1 | - | |||||||
Asia Pacific | - | - | 6 | - | 23 | |||||||
Total | $ | -1 | $ | 1 | $ | 9 | $ | 5 | $ | 29 | ||
Other costs include incremental charges for equipment removal and relocation of assets and employees that are directly related to exit or disposal activities. | ||||||||||||
At September 28, 2013, there were no exit cost reserves for severance for these initiatives. Based on forecasted exchange rates, the Company currently expects to incur an additional $2 million in exit costs for these initiatives in 2013. | ||||||||||||
New initiatives | ||||||||||||
Europe Supply Chain | ||||||||||||
During the quarter ended September 28, 2013, the Company commenced two new initiatives that are designed to improve operational effectiveness in Europe. Total costs for these initiatives are expected to be $6 million, consisting primarily of severance costs and asset write-offs. The Company recorded a charge of $2 million associated with exit or disposal activities for these initiatives which consisted primarily of severance costs. At September 28, 2013 exit cost reserves for severance for these initiatives were $2 million. Based on forecasted exchange rates, the Company currently expects to incur an additional $4 million in exit costs for these initiatives in 2013. These initiatives are expected to be substantially complete by the end of 2013. | ||||||||||||
Project K | ||||||||||||
On November 4, 2013, the Company announced Project K, a global four-year efficiency and effectiveness program. The program is expected to generate a significant amount of savings, once all phases are approved and implemented, that will be invested in key strategic areas of focus for the business. The Company expects that this investment will drive future growth in revenues, gross margin, operating profit, and cash flow. | ||||||||||||
The focus of the program will be to strengthen existing businesses in core markets, increase growth in developing and emerging markets, and drive an increased level of value-added innovation. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure, the implementation of global business services, and a new global focus on categories. | ||||||||||||
The Company currently anticipates that the program will result in total pre-tax charges, once all phases are approved and implemented, of $1.2 to $1.4 billion, with cash costs estimated to be $900 million to $1.1 billion. The Company currently expects the charges will consist of asset-related costs totaling $450 to $500 million which will consist primarily of asset impairments and other exit-related costs; employee-related costs totaling $425 to $475 million which will include severance, pension and other termination benefits; and other costs totaling $325 to $425 million which will consist primarily of charges related to the design and implementation of global business capabilities. A significant portion of other costs are the result of the implementation of global business service centers which are intended to simplify and standardize business support processes. | ||||||||||||
The Company currently expects that total pre-tax charges will impact reportable segments as follows: U.S. Morning Foods (approximately 18%), U.S. Snacks (approximately 10%), U.S. Specialty (approximately 2%), North America Other (approximately 3%), Europe (approximately 8%), Latin America (approximately 5%), Asia-Pacific (approximately 7%), and Corporate (approximately 47%). A majority of the costs impacting Corporate relate to additional initiatives to be executed after 2014 that are currently not fully defined. As the development of these initiatives is completed, the Company will update its estimated costs by reportable segment as needed. | ||||||||||||
In the third quarter, the Company recognized charges of $17 million that have been attributed to the program. The tables below outline the details of these charges: | ||||||||||||
Project K | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 28-Sep-13 | ||||||||||
Employee related costs | $ | 8 | $ | 8 | ||||||||
Asset related costs | - | - | ||||||||||
Other costs | 9 | 9 | ||||||||||
Total | $ | 17 | $ | 17 | ||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 28-Sep-13 | ||||||||||
U.S. Morning Foods | $ | 5 | $ | 5 | ||||||||
U.S. Snacks | 1 | 1 | ||||||||||
U.S. Specialty | 1 | 1 | ||||||||||
Latin America | 3 | 3 | ||||||||||
Asia Pacific | 1 | 1 | ||||||||||
Corporate | 6 | 6 | ||||||||||
Total | $ | 17 | $ | 17 | ||||||||
Other costs incurred during the quarter ended September 28, 2013 consist primarily of third-party incremental costs related to the development and implementation of global business capabilities. | ||||||||||||
At September 28, 2013 exit cost reserves for Project K were $6 million. The following table provides details for Project K exit cost reserves. | ||||||||||||
Balance | Costs | Cash | Balance | |||||||||
(millions) | 29-Dec-12 | Incurred | Payments | 28-Sep-13 | ||||||||
Project K | $ | - | $ | 17 | $ | -11 | $ | 6 | ||||
Equity
Equity | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Equity [Text Block] | ' | ||||||||||||||||
Note 4 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, and to a lesser extent, certain contingently issuable performance shares. Basic earnings per share is reconciled to diluted earnings per share in the following table. There were anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 28, 2013 of 6 million and 5 million, respectively. The total number of anti-dilutive potential common shares excluded from the reconciliation were 16 million and 17 million, respectively, for the quarter and year-to-date periods ended September 29, 2012. | |||||||||||||||||
Quarters ended September 28, 2013 and September 29, 2012: | |||||||||||||||||
Net income | Average | ||||||||||||||||
attributable to | shares | Earnings | |||||||||||||||
(millions, except per share data) | Kellogg Company* | outstanding | per share* | ||||||||||||||
2013 | |||||||||||||||||
Basic | $ | 326 | 362 | $ | 0.9 | ||||||||||||
Dilutive potential common shares | 2 | ― | |||||||||||||||
Diluted | $ | 326 | 364 | $ | 0.9 | ||||||||||||
2012 | |||||||||||||||||
Basic | $ | 318 | 358 | $ | 0.89 | ||||||||||||
Dilutive potential common shares | 1 | ― | |||||||||||||||
Diluted | $ | 318 | 359 | $ | 0.89 | ||||||||||||
* | 2012 amounts have been revised as discussed in Note 7 to the financial statements. | ||||||||||||||||
Year-to-date periods ended September 28, 2013 and September 29, 2012: | |||||||||||||||||
Net income | Average | ||||||||||||||||
attributable to | shares | Earnings | |||||||||||||||
(millions, except per share data) | Kellogg Company* | outstanding | per share* | ||||||||||||||
2013 | |||||||||||||||||
Basic | $ | 989 | 363 | $ | 2.72 | ||||||||||||
Dilutive potential common shares | 3 | -0.02 | |||||||||||||||
Diluted | $ | 989 | 366 | $ | 2.7 | ||||||||||||
2012 | |||||||||||||||||
Basic | $ | 993 | 357 | $ | 2.78 | ||||||||||||
Dilutive potential common shares | 2 | -0.01 | |||||||||||||||
Diluted | $ | 993 | 359 | $ | 2.77 | ||||||||||||
* | 2012 amounts have been revised as discussed in Note 7 to the financial statements. | ||||||||||||||||
In December 2012, the Company's board of directors approved a $300 million share repurchase program for 2013, which was superseded in April 2013 by an authorization to repurchase shares up to $1 billion through April 2014. In May 2013, the Company entered into an Accelerated Share Repurchase (ASR) Agreement with a financial institution counterparty and paid $355 million for the repurchase of shares during the term of the Agreement which extended through August 2013. During the second quarter of 2013, 4.9 million shares were initially delivered to the Company and accounted for as a reduction to Kellogg Company equity. The transaction was completed during the third quarter, at which time the Company received 0.6 million additional shares. The total number of shares delivered upon settlement of the ASR was based upon the volume weighted average price of the Company's stock over the term of the agreement. | |||||||||||||||||
During the year-to-date period ended September 28, 2013, the Company repurchased approximately 9 million shares of common stock for a total of $544 million, including shares delivered under the ASR. During the year-to-date period ended September 29, 2012, the Company repurchased slightly more than 1 million shares of common stock for a total of $63 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. OCI consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience losses and prior service cost related to employee benefit plans. | |||||||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||||||
28-Sep-13 | 28-Sep-13 | ||||||||||||||||
Pre-tax | Tax (expense) | After-tax | Pre-tax | Tax (expense) | After-tax | ||||||||||||
(millions) | amount | or benefit | amount | amount | or benefit | amount | |||||||||||
Net income | $ | 326 | $ | 989 | |||||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | $ | 63 | $ | - | 63 | $ | -28 | $ | - | -28 | |||||||
Cash flow hedges: | |||||||||||||||||
Unrealized gain (loss) on cash flow hedges | -7 | 3 | -4 | 5 | - | 5 | |||||||||||
Reclassification to net earnings | -2 | - | -2 | -4 | - | -4 | |||||||||||
Postretirement and postemployment benefits: | |||||||||||||||||
Amounts arising during the period: | - | - | |||||||||||||||
Net experience gain (loss) | - | - | - | - | - | - | |||||||||||
Prior service credit (cost) | -1 | - | -1 | -1 | - | -1 | |||||||||||
Reclassification to net income: | |||||||||||||||||
Net experience loss | 1 | - | 1 | 4 | - | 4 | |||||||||||
Prior service cost | 4 | -1 | 3 | 10 | -3 | 7 | |||||||||||
Other comprehensive income (loss) | $ | 58 | $ | 2 | 60 | $ | -14 | $ | -3 | -17 | |||||||
Comprehensive income | $ | 386 | $ | 972 | |||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the quarter and year-to-date periods ended September 28, 2013 consisted of the following: | |||||||||||||||||
(millions) | |||||||||||||||||
Details about AOCI | Amount reclassified | Line item impacted | |||||||||||||||
components | from AOCI | within Income Statement | |||||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||||||
28-Sep-13 | 28-Sep-13 | ||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||
Foreign currency exchange contracts | $ | -2 | $ | -7 | COGS | ||||||||||||
Foreign currency exchange contracts | -1 | -1 | SGA | ||||||||||||||
Interest rate contracts | -1 | -3 | Interest expense | ||||||||||||||
Commodity contracts | 2 | 7 | COGS | ||||||||||||||
$ | -2 | $ | -4 | Total before tax | |||||||||||||
- | - | Tax (expense) benefit | |||||||||||||||
$ | -2 | $ | -4 | Net of tax | |||||||||||||
Amortization of postretirement and postemployment benefits: | |||||||||||||||||
Net experience loss | $ | 1 | $ | 4 | See Note 7 for further details | ||||||||||||
Prior service cost | 4 | 10 | See Note 7 for further details | ||||||||||||||
$ | 5 | $ | 14 | Total before tax | |||||||||||||
-1 | -3 | Tax (expense) benefit | |||||||||||||||
$ | 4 | $ | 11 | Net of tax | |||||||||||||
Total reclassifications | $ | 2 | $ | 7 | Net of tax | ||||||||||||
Accumulated other comprehensive income (loss) as of September 28, 2013 and December 29, 2012 consisted of the following: | |||||||||||||||||
September 28, | December 29, | ||||||||||||||||
(millions) | 2013 | 2012 | |||||||||||||||
Foreign currency translation adjustments | $ | -860 | $ | -832 | |||||||||||||
Cash flow hedges — unrealized net gain (loss) | -2 | -3 | |||||||||||||||
Postretirement and postemployment benefits: | |||||||||||||||||
Net experience loss | -25 | -29 | |||||||||||||||
Prior service cost | -76 | -82 | |||||||||||||||
Total accumulated other comprehensive income (loss) | $ | -963 | $ | -946 | |||||||||||||
Debt
Debt | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Debt [Abstract] | ' | ||||||||||||
Debt [Text Block] | ' | ||||||||||||
Note 5 Debt | |||||||||||||
The following table presents the components of notes payable at September 28, 2013 and December 29, 2012: | |||||||||||||
(millions) | 28-Sep-13 | 29-Dec-12 | |||||||||||
Principal amount | Effective interest rate | Principal amount | Effective interest rate | ||||||||||
U.S. commercial paper | $ | 573 | 0.21 | % | $ | 853 | 0.26 | % | |||||
Europe commercial paper | 142 | 0.2 | 159 | 0.18 | |||||||||
Bank borrowings | 41 | 53 | |||||||||||
Total | $ | 756 | $ | 1,065 | |||||||||
In the first quarter of 2013, the Company terminated interest rate swaps with notional amounts totaling $250 million, which were designated as fair value hedges of its 3.25% fixed rate U.S. Dollar Notes due 2018. The interest rate swaps effectively converted the interest rate on the Notes from fixed to variable and the unrealized gain upon termination of $12 million will be amortized to interest expense over the remaining term of the notes. | |||||||||||||
In the second quarter of 2013, the Company terminated interest rate swaps with notional amounts totaling $1.4 billion, which were designated as fair value hedges for (a) $750 million of its 4.45% fixed rate U.S. Dollar Notes due 2016, (b) $500 million of its 1.875% fixed rate U.S. Dollar Notes due 2016 and (c) $150 million of its 3.25% fixed rate U.S. Dollar Notes due 2018 (collectively, the Notes). The interest rate swaps effectively converted the interest rate on the Notes from fixed to variable and the unrealized gain upon termination of $41 million will be amortized to interest expense over the remaining term of the Notes. | |||||||||||||
In February 2013, the Company issued $250 million of floating rate U.S. Dollar Notes bearing interest at LIBOR plus 0.23% due February 2015 and $400 million of ten-year 2.75% U.S. Dollar Notes, resulting in aggregate net proceeds after debt discount and commissions of $645 million. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand, the repayment of $749 million aggregate principal amount of the Company's 4.25% U.S. Dollar Notes that matured on March 6, 2013. The Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions, as well as a change of control provision. | |||||||||||||
In the first half of 2013, the Company entered into interest rate swaps with notional amounts totaling $1.9 billion, which effectively converted a portion of the associated U.S. Dollar Notes from fixed rate to floating rate obligations. These derivative instruments were designated as fair value hedges. The effective interest rates on debt obligations resulting from the Company's interest rate swaps as of September 28, 2013 were as follows: (a) seven-year 4.45% U.S. Dollar Notes due 2016 – 3.46%; (b) five-year 1.875% U.S. Dollar Notes due 2016 – 1.01%; (c) five-year 1.75% U.S. Dollar Notes due 2017 - 1.35%; (d) seven-year 3.25% U.S. Dollar Notes due 2018 – 1.89%; (e) ten-year 4.15% U.S. Dollar Notes due 2019 - 2.74%; (f) ten-year 4.00% U.S. Dollar Notes due 2020 - 2.91%; (g) ten-year 3.125% U.S. Dollar Notes due 2022 - 2.74%. |
Stock_Compensation
Stock Compensation | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Stock Compensation [Abstract] | ' | |||||||||||
Stock Compensation [Text Block] | ' | |||||||||||
Note 6 Stock compensation | ||||||||||||
The Company uses various equity-based compensation programs to provide long-term performance incentives for its global workforce. Currently, these incentives consist principally of stock options, and to a lesser extent, executive performance shares, restricted stock units and restricted stock grants. The Company also sponsors a discounted stock purchase plan in the United States and matching-grant programs in several international locations. Additionally, the Company awards restricted stock to its outside directors. The interim information below should be read in conjunction with the disclosures included within the stock compensation footnote of the Company's 2012 Annual Report on Form 10-K. | ||||||||||||
The Company classifies pre-tax stock compensation expense in SGA expense principally within its corporate operations. For the periods presented, compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows: | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Pre-tax compensation expense | $ | 10 | $ | 10 | $ | 31 | $ | 32 | ||||
Related income tax benefit | $ | 4 | $ | 4 | $ | 12 | $ | 12 | ||||
As of September 28, 2013, total stock-based compensation cost related to non-vested awards not yet recognized was $56 million and the weighted-average period over which this amount is expected to be recognized was 2 years. | ||||||||||||
Stock options | ||||||||||||
During the year-to-date period ended September 28, 2013 and September 29, 2012, the Company granted non-qualified stock options to eligible employees as presented in the following activity tables. Terms of these grants and the Company's methods for determining grant-date fair value of the awards were consistent with that described within the stock compensation footnote in the Company's 2012 Annual Report on Form 10-K. | ||||||||||||
Year-to-date period ended September 28, 2013: | ||||||||||||
Weighted- | ||||||||||||
Weighted- | average | Aggregate | ||||||||||
average | remaining | intrinsic | ||||||||||
Shares | exercise | contractual | value | |||||||||
Employee and director stock options | (millions) | price | term (yrs.) | (millions) | ||||||||
Outstanding, beginning of period | 25 | $ | 50 | |||||||||
Granted | 6 | 60 | ||||||||||
Exercised | -10 | 48 | ||||||||||
Forfeitures and expirations | -1 | 55 | ||||||||||
Outstanding, end of period | 20 | $ | 53 | 7.2 | $ | 111 | ||||||
Exercisable, end of period | 10 | $ | 50 | 5.5 | $ | 88 | ||||||
Year-to-date period ended September 29, 2012: | ||||||||||||
Weighted- | ||||||||||||
Weighted- | average | Aggregate | ||||||||||
average | remaining | intrinsic | ||||||||||
Shares | exercise | contractual | value | |||||||||
Employee and director stock options | (millions) | price | term (yrs.) | (millions) | ||||||||
Outstanding, beginning of period | 24 | $ | 48 | |||||||||
Granted | 6 | 52 | ||||||||||
Exercised | -2 | 43 | ||||||||||
Forfeitures and expirations | -1 | 53 | ||||||||||
Outstanding, end of period | 27 | $ | 49 | 6.4 | $ | 78 | ||||||
Exercisable, end of period | 17 | $ | 48 | 5.1 | $ | 78 | ||||||
The weighted-average fair value of options granted was $5.92 per share and $5.23 per share for the year-to-date periods ended September 28, 2013 and September 29, 2012, respectively. The fair value was estimated using the following assumptions: | ||||||||||||
Weighted-average expected volatility | Weighted-average expected term (years) | Weighted-average risk-free interest rate | Dividend yield | |||||||||
Grants within the year-to-date period ended September 28, 2013: | 15% | 7.44 | 1.49% | 2.90% | ||||||||
Grants within the year-to-date period ended September 29, 2012: | 16% | 7.53 | 1.60% | 3.30% | ||||||||
The total intrinsic value of options exercised was $133 million and $16 million for the year-to-date periods ended September 28, 2013 and September 29, 2012, respectively. | ||||||||||||
Performance shares | ||||||||||||
In the first quarter of 2013, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company's common stock on the vesting date, provided cumulative three-year operating profit and internal net sales growth targets are achieved. | ||||||||||||
The 2013 target grant currently corresponds to approximately 210,000 shares, with a grant-date fair value of $54 per share. The actual number of shares issued on the vesting date could range from 0 to 200% of target, depending on actual performance achieved. Based on the market price of the Company's common stock at September 28, 2013, the maximum future value that could be awarded to employees on the vesting date for all outstanding performance share awards was as follows: | ||||||||||||
(millions) | 28-Sep-13 | |||||||||||
2011 Award | $ | 22 | ||||||||||
2012 Award | $ | 22 | ||||||||||
2013 Award | $ | 25 | ||||||||||
The 2010 performance share award, payable in stock, was settled at 40% of target in February 2013 for a total dollar | ||||||||||||
equivalent of $4 million. |
Employee_Benefits
Employee Benefits | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Employee Benefits [Abstract] | ' | |||||||||||
Employee Benefits [Text Block] | ' | |||||||||||
Note 7 Employee benefits | ||||||||||||
The Company sponsors a number of U.S. and foreign pension, other nonpension postretirement and postemployment plans to provide various benefits for its employees. These plans are described within the footnotes to the Consolidated Financial Statements included in the Company's 2012 Annual Report on Form 10-K. During the fourth quarter of 2012 the Company changed its policy for recognizing expense for its pension and postretirement benefit plans. Components of Company plan benefit expense for the periods presented are included in the tables below. Prior year amounts have been revised to reflect the new policy. | ||||||||||||
Pension | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Service cost | $ | 33 | $ | 28 | $ | 101 | $ | 82 | ||||
Interest cost | 51 | 53 | 151 | 156 | ||||||||
Expected return on plan assets | -90 | -86 | -269 | -257 | ||||||||
Amortization of unrecognized prior service cost | 4 | 3 | 12 | 10 | ||||||||
Total pension expense (income) | $ | -2 | $ | -2 | $ | -5 | $ | -9 | ||||
Other nonpension postretirement | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Service cost | $ | 8 | $ | 7 | $ | 25 | $ | 20 | ||||
Interest cost | 13 | 13 | 37 | 39 | ||||||||
Expected return on plan assets | -21 | -21 | -65 | -63 | ||||||||
Amortization of unrecognized prior service cost | - | -1 | -2 | -1 | ||||||||
Total postretirement benefit expense (income) | $ | - | $ | -2 | $ | -5 | $ | -5 | ||||
Postemployment | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Service cost | $ | 2 | $ | 2 | $ | 5 | $ | 6 | ||||
Interest cost | 1 | 1 | 3 | 3 | ||||||||
Recognized net loss | 1 | 1 | 4 | 3 | ||||||||
Total postemployment benefit expense | $ | 4 | $ | 4 | $ | 12 | $ | 12 | ||||
Company contributions to employee benefit plans are summarized as follows: | ||||||||||||
Nonpension | ||||||||||||
(millions) | Pension | postretirement | Total | |||||||||
Quarter ended: | ||||||||||||
28-Sep-13 | $ | 2 | $ | 4 | $ | 6 | ||||||
29-Sep-12 | $ | 7 | $ | 3 | $ | 10 | ||||||
Year-to-date period ended: | ||||||||||||
28-Sep-13 | $ | 30 | $ | 12 | $ | 42 | ||||||
29-Sep-12 | $ | 31 | $ | 12 | $ | 43 | ||||||
Full year: | ||||||||||||
Fiscal year 2013 (projected) | $ | 45 | $ | 17 | $ | 62 | ||||||
Fiscal year 2012 (actual) | $ | 38 | $ | 13 | $ | 51 | ||||||
Plan funding strategies may be modified in response to management's evaluation of tax deductibility, market conditions, and competing investment alternatives. |
Income_Taxes
Income Taxes | 9 Months Ended | |||
Sep. 28, 2013 | ||||
Income Taxes [Abstract] | ' | |||
Income Taxes [Text Block] | ' | |||
Note 8 Income taxes | ||||
The consolidated effective tax rate for the quarter ended September 28, 2013 was 27% as compared to the prior year's rate of 29%. The lower effective rate in the current quarter was primarily due to a rate reduction and the elimination of a tax liability in international jurisdictions. The consolidated effective tax rate for the year-to-date periods ended September 28, 2013 and September 29, 2012 was 29%. | ||||
As of September 28, 2013, the Company classified $19 million related to uncertain tax positions as a net current liability, representing several income tax positions under examination in various jurisdictions. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability balance, expected to be settled within one year, offset by $10 million of projected additions. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation in this estimate. | ||||
Following is a reconciliation of the Company's total gross unrecognized tax benefits for the year-to-date period ended September 28, 2013; $60 million of this total represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods. | ||||
(millions) | ||||
29-Dec-12 | $ | 80 | ||
Tax positions related to current year: | ||||
Additions | 8 | |||
Reductions | - | |||
Tax positions related to prior years: | ||||
Additions | 11 | |||
Reductions | -5 | |||
Settlements | -11 | |||
28-Sep-13 | $ | 83 | ||
For the year-to-date period ended September 28, 2013, the Company recognized expense of $4 million for tax-related interest and cash settlements of $5 million, resulting in an accrual balance of $18 million at September 28, 2013. |
Derivative_Instruments_and_Fai
Derivative Instruments and Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||
Derivative Instruments and Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
Derivative Instruments and Fair Value Measurements [Text Block] | ' | |||||||||||||||||||
Note 9 Derivative instruments and fair value measurements | ||||||||||||||||||||
The Company is exposed to certain market risks such as changes in interest rates, foreign currency exchange rates, and commodity prices, which exist as a part of its ongoing business operations. Management uses derivative financial and commodity instruments, including futures, options, and swaps, where appropriate, to manage these risks. Instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged. | ||||||||||||||||||||
The Company designates derivatives as cash flow hedges, fair value hedges, net investment hedges, and uses other contracts to reduce volatility in interest rates, foreign currency and commodities. As a matter of policy, the Company does not engage in trading or speculative hedging transactions. | ||||||||||||||||||||
Total notional amounts of the Company's derivative instruments as of September 28, 2013 and December 29, 2012 were as follows: | ||||||||||||||||||||
September 28, | December 29, | |||||||||||||||||||
(millions) | 2013 | 2012 | ||||||||||||||||||
Foreign currency exchange contracts | $ | 645 | $ | 570 | ||||||||||||||||
Interest rate contracts | 2,400 | 2,150 | ||||||||||||||||||
Commodity contracts | 383 | 320 | ||||||||||||||||||
Total | $ | 3,428 | $ | 3,040 | ||||||||||||||||
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 September 28, 2013 and December 29, 2012, 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 interest rate swaps and over-the-counter commodity and currency contracts. | ||||||||||||||||||||
The Company's calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve. 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. | ||||||||||||||||||||
Level 3 – Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company did not have any level 3 financial assets or liabilities as of September 28, 2013 or December 29, 2012. | ||||||||||||||||||||
The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of September 28, 2013 and December 29, 2012: | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
28-Sep-13 | 29-Dec-12 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | 4 | $ | 4 | $ | - | $ | 4 | $ | 4 | ||||||||
Interest rate contracts (a): | ||||||||||||||||||||
Other assets | - | - | - | - | 64 | 64 | ||||||||||||||
Total assets | $ | - | $ | 4 | $ | 4 | $ | - | $ | 68 | $ | 68 | ||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other current liabilities | $ | - | $ | -8 | $ | -8 | $ | - | $ | -3 | $ | -3 | ||||||||
Interest rate contracts: | ||||||||||||||||||||
Other liabilities | - | -43 | -43 | - | - | - | ||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | - | -10 | -10 | - | -11 | -11 | ||||||||||||||
Other liabilities | - | -21 | -21 | - | -27 | -27 | ||||||||||||||
Total liabilities | $ | - | $ | -82 | $ | -82 | $ | - | $ | -41 | $ | -41 | ||||||||
(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $2.5 billion as of September 28, 2013 and $2.3 billion as of December 29, 2012. | ||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
28-Sep-13 | 29-Dec-12 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | 1 | $ | 1 | $ | - | $ | - | $ | - | ||||||||
Commodity contracts: | ||||||||||||||||||||
Other prepaid assets | 5 | - | 5 | 5 | - | 5 | ||||||||||||||
Total assets | $ | 5 | $ | 1 | $ | 6 | $ | 5 | $ | - | $ | 5 | ||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other current liabilities | $ | - | $ | -1 | $ | -1 | $ | - | $ | - | $ | - | ||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | -9 | - | -9 | -3 | - | -3 | ||||||||||||||
Total liabilities | $ | -9 | $ | -1 | $ | -10 | $ | -3 | $ | - | $ | -3 | ||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended September 28, 2013 and September 29, 2012 was as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income (a) | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | -1 | $ | 2 | |||||||||||||||
Interest rate contracts | Interest expense | -3 | 4 | |||||||||||||||||
Total | $ | -4 | $ | 6 | ||||||||||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | Location of gain | Gain (loss) | |||||||||||||||||
Gain (loss) | (loss) reclassified | reclassified from | (loss) recognized | recognized in | ||||||||||||||||
(millions) | recognized in AOCI | from AOCI | AOCI into income | in income (a) | income (a) | |||||||||||||||
Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign currency exchange contracts | $ | -4 | $ | -4 | COGS | $ | 2 | $ | -1 | Other income (expense), net | $ | - | $ | - | ||||||
Foreign currency exchange contracts | -3 | - | SGA expense | 1 | 1 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | - | - | Interest expense | 1 | 1 | N/A | - | - | ||||||||||||
Commodity contracts | - | 3 | COGS | -2 | -4 | Other income (expense), net | - | - | ||||||||||||
Total | $ | -7 | $ | -1 | $ | 2 | $ | -3 | $ | - | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | $ | - | $ | -1 | ||||||||||||||||
Total | $ | - | $ | -1 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 1 | $ | - | |||||||||||||||
Commodity contracts | COGS | -2 | -3 | |||||||||||||||||
Total | $ | -1 | $ | -3 | ||||||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income(a) | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 2 | $ | 1 | |||||||||||||||
Interest rate contracts | Interest expense | -2 | 4 | |||||||||||||||||
Total | $ | - | $ | 5 | ||||||||||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | Location of gain | Gain (loss) | |||||||||||||||||
Gain (loss) | (loss) reclassified | reclassified from | (loss) recognized | recognized in | ||||||||||||||||
(millions) | recognized in AOCI | from AOCI | AOCI into income | in income (a) | income(a) | |||||||||||||||
Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign currency exchange contracts | $ | 8 | $ | -5 | COGS | $ | 7 | $ | -1 | Other income (expense), net | $ | - | $ | - | ||||||
Foreign currency exchange contracts | -2 | 1 | SGA expense | 1 | 2 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | - | - | Interest expense | 3 | 3 | N/A | - | - | ||||||||||||
Commodity contracts | -1 | -5 | COGS | -7 | -16 | Other income (expense), net | - | - | ||||||||||||
Total | $ | 5 | $ | -9 | $ | 4 | $ | -12 | $ | - | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | $ | - | $ | 5 | ||||||||||||||||
Total | $ | - | $ | 5 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | COGS | $ | 2 | $ | - | |||||||||||||||
Interest rate contracts | Interest expense | - | -1 | |||||||||||||||||
Commodity contracts | COGS | -26 | -3 | |||||||||||||||||
Total | $ | -24 | $ | -4 | ||||||||||||||||
During the next 12 months, the Company expects $8.0 million of net deferred losses reported in AOCI at September 28, 2013 to be reclassified to income, assuming market rates remain constant through contract maturities. | ||||||||||||||||||||
Certain of the Company's derivative instruments contain provisions requiring the Company to post collateral on those derivative instruments that are in a liability position if the Company's credit rating is at or below BB+ (S&P), or Ba1 (Moody's). The fair value of all derivative instruments with credit-risk-related contingent features in a liability position on September 28, 2013 was $59 million. If the credit-risk-related contingent features were triggered as of September 28, 2013, the Company would be required to post additional collateral of $54 million. In addition, certain derivative instruments contain provisions that would be triggered in the event the Company defaults on its debt agreements. There were no collateral posting requirements as of September 28, 2013 triggered by credit-risk-related contingent features, however, there was $5 million of collateral posted under the reciprocal agreements as discussed under counterparty credit risk concentration below. | ||||||||||||||||||||
Financial instruments | ||||||||||||||||||||
The carrying values of the Company's short-term items, including cash, cash equivalents, accounts receivable, accounts payable and notes payable approximate fair value. The fair value of the Company's long-term debt, which are level 2 liabilities, is calculated based on broker quotes and was as follows at September 28, 2013: | ||||||||||||||||||||
(millions) | Fair Value | Carrying Value | ||||||||||||||||||
Current maturities of long-term debt | $ | 298 | $ | 298 | ||||||||||||||||
Long-term debt | 6,794 | 6,348 | ||||||||||||||||||
Total | $ | 7,092 | $ | 6,646 | ||||||||||||||||
Counterparty credit risk concentration | ||||||||||||||||||||
The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative financial and commodity contracts. Management believes a concentration of credit risk with respect to derivative counterparties is limited due to the credit ratings and use of master netting and reciprocal collateralization agreements with the counterparties and the use of exchange-traded commodity contracts. | ||||||||||||||||||||
Master netting agreements apply in situations where the Company executes multiple contracts with the same counterparty. Certain counterparties represent a concentration of credit risk to the Company. If those counterparties fail to perform according to the terms of derivative contracts, this would result in a loss to the Company. As of September 28, 2013, the Company was not in a significant net asset position with any counterparties with which a master netting agreement would apply. | ||||||||||||||||||||
For certain derivative contracts, reciprocal collateralization agreements with counterparties call for the posting of collateral in the form of cash, treasury securities or letters of credit if a fair value loss position to the Company or its counterparties exceeds a certain amount. As of September 28, 2013 the Company had posted collateral of $5 million in the form of cash, which was reflected as an increase in accounts receivable, net on the Consolidated Balance Sheet. | ||||||||||||||||||||
Management believes concentrations of credit risk with respect to accounts receivable is limited due to the generally high credit quality of the Company's major customers, as well as the large number and geographic dispersion of smaller customers. However, the Company conducts a disproportionate amount of business with a small number of large multinational grocery retailers, with the five largest accounts encompassing approximately 27% of consolidated trade receivables at September 28, 2013. | ||||||||||||||||||||
Reportable_Segments
Reportable Segments | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Reportable Segments [Abstract] | ' | ||||||||||||
Reportable Segments [Text Block] | ' | ||||||||||||
Note 10 Reportable segments | |||||||||||||
Kellogg Company is the world's leading producer of cereal, second largest producer of cookies and crackers, and a leading producer of savory snacks and frozen foods. Additional product offerings include toaster pastries, cereal bars, fruit-flavored snacks and veggie foods. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States and United Kingdom. | |||||||||||||
The Company currently manages its operations through eight operating segments that are based on product category or geographic location. These operating segments are evaluated for similarity with regards to economic characteristics, products, production processes, types or classes of customers, distribution methods and regulatory environments to determine if they can be aggregated into reportable segments. Beginning in the first quarter of 2013, the Kashi operating segment, which was formerly aggregated with the U.S. Morning Foods operating segment and reported as U.S. Morning Foods and Kashi, was eliminated due to a reorganization of the business. Kashi operating segment results of prior periods were recast between U.S. Morning Foods and U.S. Snacks to conform to the current presentation. The reportable segments are discussed in greater detail below. | |||||||||||||
U.S. Morning Foods includes cereal, toaster pastries, health and wellness bars, and beverages generally marketed under the Kellogg's name. | |||||||||||||
U.S. Snacks includes products such as cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks. | |||||||||||||
U.S. Specialty primarily represents the food service, convenience and Girl Scouts businesses. The food service business is mostly non-commercial, servicing institutions such as schools and hospitals. | |||||||||||||
North America Other represents the U.S. Frozen and Canada operating segments. As these operating segments are not considered economically similar enough to aggregate with other operating segments and are immaterial for separate disclosure, they have been grouped together as a single reportable segment. | |||||||||||||
The three remaining reportable segments are based on geographic location – Europe which consists principally of European countries; Latin America which is comprised of Central and South America and includes Mexico; and Asia Pacific which is comprised of South Africa, Australia and other Asian and Pacific markets. | |||||||||||||
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. Intercompany transactions between operating segments were insignificant in all periods presented. Segment operating profit excludes unrealized gains and losses on certain commodity hedging activities, certain components of our postemployment benefit plans, and general corporate expenses. Once realized, the gains and losses on certain commodity hedging activities are recognized within the segment results in the same period in which the underlying transaction being economically hedged is included in earnings. We exclude certain components of our postemployment benefit plans from segment operating profit because we centrally manage postemployment benefit plan funding decisions as well as the determination of discount rate, expected rate of return on plan assets and other actuarial assumptions. We also manage market-based impacts to these benefit plans centrally. Therefore we allocate only the service cost and amortization of prior service cost components of our pension and nonpension postretirement plan expense to segment operating profit. | |||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
(millions) | 2013 | 2012 | 2013 | 2012 | |||||||||
Net sales | |||||||||||||
U.S. Morning Foods | $ | 883 | $ | 903 | $ | 2,657 | $ | 2,692 | |||||
U.S. Snacks | 886 | 908 | 2,704 | 2,544 | |||||||||
U.S. Specialty | 281 | 264 | 932 | 864 | |||||||||
North America Other | 382 | 388 | 1,173 | 1,125 | |||||||||
Europe | 729 | 685 | 2,144 | 1,836 | |||||||||
Latin America | 302 | 292 | 914 | 836 | |||||||||
Asia Pacific | 253 | 280 | 767 | 737 | |||||||||
Consolidated | $ | 3,716 | $ | 3,720 | $ | 11,291 | $ | 10,634 | |||||
Operating profit | |||||||||||||
U.S. Morning Foods | $ | 132 | $ | 134 | $ | 475 | $ | 465 | |||||
U.S. Snacks | 105 | 117 | 341 | 361 | |||||||||
U.S. Specialty | 70 | 62 | 210 | 189 | |||||||||
North America Other | 70 | 67 | 223 | 207 | |||||||||
Europe | 74 | 76 | 220 | 210 | |||||||||
Latin America | 39 | 36 | 129 | 135 | |||||||||
Asia Pacific | 25 | 29 | 63 | 79 | |||||||||
Total Reportable Segments | 515 | 521 | 1,661 | 1,646 | |||||||||
Corporate | -11 | -8 | -84 | -87 | |||||||||
Consolidated | $ | 504 | $ | 513 | $ | 1,577 | $ | 1,559 | |||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of presentation [Policy Text Block] | ' |
Basis of presentation | |
The unaudited interim financial information of Kellogg Company (the Company) included in this report reflects normal recurring adjustments 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 Company's 2012 Annual Report on Form 10-K. | |
The condensed balance sheet data at December 29, 2012 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the quarterly period ended September 28, 2013 are not necessarily indicative of the results to be expected for other interim periods or the full year. | |
New accounting standards [Policy Text Block] | ' |
New accounting standards | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the Financial Accounting Standards Board (FASB) issued an updated accounting standard that includes a requirement to present reclassification adjustments out of accumulated other comprehensive income by component either on the face of the financial statements or as a separate disclosure in the notes to the financial statements. This updated standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012 and was adopted by the Company on a prospective basis at the beginning of its 2013 fiscal year. Refer to Note 4 for disclosures required under this standard. | |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangible Assets [Abstract] | ' | |||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | |||||||||||||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||||||||||||||
September 29, | September 29, | |||||||||||||||||||||||
(millions, except per share data) | 2012 | 2012 | ||||||||||||||||||||||
Net sales | $ | 3,720 | $ | 11,299 | ||||||||||||||||||||
Net income | $ | 318 | $ | 1,041 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | - | - | ||||||||||||||||||||||
Net income attributable to Kellogg Company | $ | 318 | $ | 1,041 | ||||||||||||||||||||
Net earnings per share | $ | 0.89 | $ | 2.9 | ||||||||||||||||||||
Carrying Amount of Goodwill [Table Text Block] | ' | |||||||||||||||||||||||
Carrying amount of goodwill | ||||||||||||||||||||||||
U.S. | North | |||||||||||||||||||||||
Morning | U.S. | U.S. | America | Latin | Asia | Consoli- | ||||||||||||||||||
(millions) | Foods | Snacks | Specialty | Other | Europe | America | Pacific | dated | ||||||||||||||||
29-Dec-12 | $ | 133 | $ | 3,767 | $ | 82 | $ | 280 | $ | 438 | $ | 92 | $ | 246 | $ | 5,038 | ||||||||
Additions | - | 11 | - | - | 10 | - | 3 | 24 | ||||||||||||||||
Currency translation adjustment | - | - | - | -1 | 1 | -2 | -8 | -10 | ||||||||||||||||
28-Sep-13 | $ | 133 | $ | 3,778 | $ | 82 | $ | 279 | $ | 449 | $ | 90 | $ | 241 | $ | 5,052 | ||||||||
Intangible Assets Subject to Amortization [Table Text Block] | ' | |||||||||||||||||||||||
Intangible assets subject to amortization | ||||||||||||||||||||||||
(millions) | ||||||||||||||||||||||||
U.S. | North | |||||||||||||||||||||||
Morning | U.S. | U.S. | America | Latin | Asia | Consoli- | ||||||||||||||||||
Gross carrying amount | Foods | Snacks | Specialty | Other | Europe | America | Pacific | dated | ||||||||||||||||
29-Dec-12 | $ | 28 | $ | 70 | $ | - | $ | 5 | $ | 43 | $ | 7 | $ | 10 | $ | 163 | ||||||||
Currency translation adjustment | - | - | - | - | - | - | - | - | ||||||||||||||||
28-Sep-13 | $ | 28 | $ | 70 | $ | - | $ | 5 | $ | 43 | $ | 7 | $ | 10 | $ | 163 | ||||||||
Accumulated Amortization | ||||||||||||||||||||||||
29-Dec-12 | $ | 28 | $ | 12 | $ | - | $ | 3 | $ | 3 | $ | 7 | $ | - | $ | 53 | ||||||||
Amortization | - | 3 | - | - | 2 | - | 1 | 6 | ||||||||||||||||
28-Sep-13 | $ | 28 | $ | 15 | $ | - | $ | 3 | $ | 5 | $ | 7 | $ | 1 | $ | 59 | ||||||||
Intangible assets subject to amortization, net | ||||||||||||||||||||||||
29-Dec-12 | $ | - | $ | 58 | $ | - | $ | 2 | $ | 40 | $ | - | $ | 10 | $ | 110 | ||||||||
Currency translation adjustment | - | - | - | - | - | - | - | - | ||||||||||||||||
Amortization | - | -3 | - | - | -2 | - | -1 | -6 | ||||||||||||||||
28-Sep-13 | $ | - | $ | 55 | $ | - | $ | 2 | $ | 38 | $ | - | $ | 9 | $ | 104 | ||||||||
Intangible Assets not Subject to Amortization [Table Text Block] | ' | |||||||||||||||||||||||
Intangible assets not subject to amortization | ||||||||||||||||||||||||
U.S. | North | |||||||||||||||||||||||
Morning | U.S. | U.S. | America | Latin | Asia | Consoli- | ||||||||||||||||||
(millions) | Foods | Snacks | Specialty | Other | Europe | America | Pacific | dated | ||||||||||||||||
29-Dec-12 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 466 | $ | - | $ | - | $ | 2,249 | ||||||||
Currency translation adjustment | - | - | - | - | 11 | - | - | 11 | ||||||||||||||||
28-Sep-13 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 477 | $ | - | $ | - | $ | 2,260 | ||||||||
Exit_or_Disposal_Activities_Ta
Exit or Disposal Activities (Tables) | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
COGS and SGA Programs [Member] | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of restructuring and related costs [Table Text Block] | ' | |||||||||||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | |||||||
Employee related costs | $ | -1 | $ | - | $ | 3 | $ | 3 | $ | 6 | ||
Asset related costs | - | 1 | 4 | 2 | 21 | |||||||
Other costs | - | - | 2 | - | 2 | |||||||
Total | $ | -1 | $ | 1 | $ | 9 | $ | 5 | $ | 29 | ||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | |||||||
U.S. Morning Foods | $ | -1 | $ | - | $ | 2 | $ | 1 | $ | 3 | ||
U.S. Snacks | - | 1 | 1 | 3 | 3 | |||||||
Europe | - | - | - | 1 | - | |||||||
Asia Pacific | - | - | 6 | - | 23 | |||||||
Total | $ | -1 | $ | 1 | $ | 9 | $ | 5 | $ | 29 | ||
Project K [Member] | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of restructuring and related costs [Table Text Block] | ' | |||||||||||
Project K | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 28-Sep-13 | ||||||||||
Employee related costs | $ | 8 | $ | 8 | ||||||||
Asset related costs | - | - | ||||||||||
Other costs | 9 | 9 | ||||||||||
Total | $ | 17 | $ | 17 | ||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 28-Sep-13 | ||||||||||
U.S. Morning Foods | $ | 5 | $ | 5 | ||||||||
U.S. Snacks | 1 | 1 | ||||||||||
U.S. Specialty | 1 | 1 | ||||||||||
Latin America | 3 | 3 | ||||||||||
Asia Pacific | 1 | 1 | ||||||||||
Corporate | 6 | 6 | ||||||||||
Total | $ | 17 | $ | 17 | ||||||||
Schedule of restructuring reserve by type of cost [Table Text Block] | ' | |||||||||||
Balance | Costs | Cash | Balance | |||||||||
(millions) | 29-Dec-12 | Incurred | Payments | 28-Sep-13 | ||||||||
Project K | $ | - | $ | 17 | $ | -11 | $ | 6 | ||||
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Earnings per Share [Table Text Block] | ' | ||||||||||||||||
Quarters ended September 28, 2013 and September 29, 2012: | |||||||||||||||||
Net income | Average | ||||||||||||||||
attributable to | shares | Earnings | |||||||||||||||
(millions, except per share data) | Kellogg Company* | outstanding | per share* | ||||||||||||||
2013 | |||||||||||||||||
Basic | $ | 326 | 362 | $ | 0.9 | ||||||||||||
Dilutive potential common shares | 2 | ― | |||||||||||||||
Diluted | $ | 326 | 364 | $ | 0.9 | ||||||||||||
2012 | |||||||||||||||||
Basic | $ | 318 | 358 | $ | 0.89 | ||||||||||||
Dilutive potential common shares | 1 | ― | |||||||||||||||
Diluted | $ | 318 | 359 | $ | 0.89 | ||||||||||||
* | 2012 amounts have been revised as discussed in Note 7 to the financial statements. | ||||||||||||||||
Year-to-date periods ended September 28, 2013 and September 29, 2012: | |||||||||||||||||
Net income | Average | ||||||||||||||||
attributable to | shares | Earnings | |||||||||||||||
(millions, except per share data) | Kellogg Company* | outstanding | per share* | ||||||||||||||
2013 | |||||||||||||||||
Basic | $ | 989 | 363 | $ | 2.72 | ||||||||||||
Dilutive potential common shares | 3 | -0.02 | |||||||||||||||
Diluted | $ | 989 | 366 | $ | 2.7 | ||||||||||||
2012 | |||||||||||||||||
Basic | $ | 993 | 357 | $ | 2.78 | ||||||||||||
Dilutive potential common shares | 2 | -0.01 | |||||||||||||||
Diluted | $ | 993 | 359 | $ | 2.77 | ||||||||||||
* | 2012 amounts have been revised as discussed in Note 7 to the financial statements. | ||||||||||||||||
Changes in Comprehensive Income [Table Text Block] | ' | ||||||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||||||
28-Sep-13 | 28-Sep-13 | ||||||||||||||||
Pre-tax | Tax (expense) | After-tax | Pre-tax | Tax (expense) | After-tax | ||||||||||||
(millions) | amount | or benefit | amount | amount | or benefit | amount | |||||||||||
Net income | $ | 326 | $ | 989 | |||||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | $ | 63 | $ | - | 63 | $ | -28 | $ | - | -28 | |||||||
Cash flow hedges: | |||||||||||||||||
Unrealized gain (loss) on cash flow hedges | -7 | 3 | -4 | 5 | - | 5 | |||||||||||
Reclassification to net earnings | -2 | - | -2 | -4 | - | -4 | |||||||||||
Postretirement and postemployment benefits: | |||||||||||||||||
Amounts arising during the period: | - | - | |||||||||||||||
Net experience gain (loss) | - | - | - | - | - | - | |||||||||||
Prior service credit (cost) | -1 | - | -1 | -1 | - | -1 | |||||||||||
Reclassification to net income: | |||||||||||||||||
Net experience loss | 1 | - | 1 | 4 | - | 4 | |||||||||||
Prior service cost | 4 | -1 | 3 | 10 | -3 | 7 | |||||||||||
Other comprehensive income (loss) | $ | 58 | $ | 2 | 60 | $ | -14 | $ | -3 | -17 | |||||||
Comprehensive income | $ | 386 | $ | 972 | |||||||||||||
Relcassification out of AOCI [Table Text Block] | ' | ||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the quarter and year-to-date periods ended September 28, 2013 consisted of the following: | |||||||||||||||||
(millions) | |||||||||||||||||
Details about AOCI | Amount reclassified | Line item impacted | |||||||||||||||
components | from AOCI | within Income Statement | |||||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||||||
28-Sep-13 | 28-Sep-13 | ||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||
Foreign currency exchange contracts | $ | -2 | $ | -7 | COGS | ||||||||||||
Foreign currency exchange contracts | -1 | -1 | SGA | ||||||||||||||
Interest rate contracts | -1 | -3 | Interest expense | ||||||||||||||
Commodity contracts | 2 | 7 | COGS | ||||||||||||||
$ | -2 | $ | -4 | Total before tax | |||||||||||||
- | - | Tax (expense) benefit | |||||||||||||||
$ | -2 | $ | -4 | Net of tax | |||||||||||||
Amortization of postretirement and postemployment benefits: | |||||||||||||||||
Net experience loss | $ | 1 | $ | 4 | See Note 7 for further details | ||||||||||||
Prior service cost | 4 | 10 | See Note 7 for further details | ||||||||||||||
$ | 5 | $ | 14 | Total before tax | |||||||||||||
-1 | -3 | Tax (expense) benefit | |||||||||||||||
$ | 4 | $ | 11 | Net of tax | |||||||||||||
Total reclassifications | $ | 2 | $ | 7 | Net of tax | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Accumulated other comprehensive income (loss) as of September 28, 2013 and December 29, 2012 consisted of the following: | |||||||||||||||||
September 28, | December 29, | ||||||||||||||||
(millions) | 2013 | 2012 | |||||||||||||||
Foreign currency translation adjustments | $ | -860 | $ | -832 | |||||||||||||
Cash flow hedges — unrealized net gain (loss) | -2 | -3 | |||||||||||||||
Postretirement and postemployment benefits: | |||||||||||||||||
Net experience loss | -25 | -29 | |||||||||||||||
Prior service cost | -76 | -82 | |||||||||||||||
Total accumulated other comprehensive income (loss) | $ | -963 | $ | -946 | |||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Debt [Abstract] | ' | ||||||||||||
Components of Notes Payable [Table Text Block] | ' | ||||||||||||
(millions) | 28-Sep-13 | 29-Dec-12 | |||||||||||
Principal amount | Effective interest rate | Principal amount | Effective interest rate | ||||||||||
U.S. commercial paper | $ | 573 | 0.21 | % | $ | 853 | 0.26 | % | |||||
Europe commercial paper | 142 | 0.2 | 159 | 0.18 | |||||||||
Bank borrowings | 41 | 53 | |||||||||||
Total | $ | 756 | $ | 1,065 |
Stock_Compensation_Tables
Stock Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Stock Compensation [Abstract] | ' | |||||||||||
Schedule of Compensation Expense for Equity Programs and Related Tax Benefits [Table Text Block] | ' | |||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Pre-tax compensation expense | $ | 10 | $ | 10 | $ | 31 | $ | 32 | ||||
Related income tax benefit | $ | 4 | $ | 4 | $ | 12 | $ | 12 | ||||
Summary of Share-based Compensation [Table Text Block] | ' | |||||||||||
Year-to-date period ended September 28, 2013: | ||||||||||||
Weighted- | ||||||||||||
Weighted- | average | Aggregate | ||||||||||
average | remaining | intrinsic | ||||||||||
Shares | exercise | contractual | value | |||||||||
Employee and director stock options | (millions) | price | term (yrs.) | (millions) | ||||||||
Outstanding, beginning of period | 25 | $ | 50 | |||||||||
Granted | 6 | 60 | ||||||||||
Exercised | -10 | 48 | ||||||||||
Forfeitures and expirations | -1 | 55 | ||||||||||
Outstanding, end of period | 20 | $ | 53 | 7.2 | $ | 111 | ||||||
Exercisable, end of period | 10 | $ | 50 | 5.5 | $ | 88 | ||||||
Year-to-date period ended September 29, 2012: | ||||||||||||
Weighted- | ||||||||||||
Weighted- | average | Aggregate | ||||||||||
average | remaining | intrinsic | ||||||||||
Shares | exercise | contractual | value | |||||||||
Employee and director stock options | (millions) | price | term (yrs.) | (millions) | ||||||||
Outstanding, beginning of period | 24 | $ | 48 | |||||||||
Granted | 6 | 52 | ||||||||||
Exercised | -2 | 43 | ||||||||||
Forfeitures and expirations | -1 | 53 | ||||||||||
Outstanding, end of period | 27 | $ | 49 | 6.4 | $ | 78 | ||||||
Exercisable, end of period | 17 | $ | 48 | 5.1 | $ | 78 | ||||||
Schedule of Stock Option Valuation Model Assumptions for Grants [Table Text Block] | ' | |||||||||||
Weighted-average expected volatility | Weighted-average expected term (years) | Weighted-average risk-free interest rate | Dividend yield | |||||||||
Grants within the year-to-date period ended September 28, 2013: | 15% | 7.44 | 1.49% | 2.90% | ||||||||
Grants within the year-to-date period ended September 29, 2012: | 16% | 7.53 | 1.60% | 3.30% | ||||||||
Maximum Future Value of Performance Shares [Table Text Block] | ' | |||||||||||
(millions) | 28-Sep-13 | |||||||||||
2011 Award | $ | 22 | ||||||||||
2012 Award | $ | 22 | ||||||||||
2013 Award | $ | 25 | ||||||||||
The 2010 performance share award, payable in stock, was settled at 40% of target in February 2013 for a total dollar | ||||||||||||
equivalent of $4 million. |
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | |||||||||||
Sep. 28, 2013 | ||||||||||||
Employee Benefits [Abstract] | ' | |||||||||||
Components of Company Plan Benefit Expense [Table Text Block] | ' | |||||||||||
Pension | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Service cost | $ | 33 | $ | 28 | $ | 101 | $ | 82 | ||||
Interest cost | 51 | 53 | 151 | 156 | ||||||||
Expected return on plan assets | -90 | -86 | -269 | -257 | ||||||||
Amortization of unrecognized prior service cost | 4 | 3 | 12 | 10 | ||||||||
Total pension expense (income) | $ | -2 | $ | -2 | $ | -5 | $ | -9 | ||||
Other nonpension postretirement | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Service cost | $ | 8 | $ | 7 | $ | 25 | $ | 20 | ||||
Interest cost | 13 | 13 | 37 | 39 | ||||||||
Expected return on plan assets | -21 | -21 | -65 | -63 | ||||||||
Amortization of unrecognized prior service cost | - | -1 | -2 | -1 | ||||||||
Total postretirement benefit expense (income) | $ | - | $ | -2 | $ | -5 | $ | -5 | ||||
Postemployment | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 28-Sep-13 | 29-Sep-12 | 28-Sep-13 | 29-Sep-12 | ||||||||
Service cost | $ | 2 | $ | 2 | $ | 5 | $ | 6 | ||||
Interest cost | 1 | 1 | 3 | 3 | ||||||||
Recognized net loss | 1 | 1 | 4 | 3 | ||||||||
Total postemployment benefit expense | $ | 4 | $ | 4 | $ | 12 | $ | 12 | ||||
Contributions to Employee Benefit Plans [Table Text Block] | ' | |||||||||||
Company contributions to employee benefit plans are summarized as follows: | ||||||||||||
Nonpension | ||||||||||||
(millions) | Pension | postretirement | Total | |||||||||
Quarter ended: | ||||||||||||
28-Sep-13 | $ | 2 | $ | 4 | $ | 6 | ||||||
29-Sep-12 | $ | 7 | $ | 3 | $ | 10 | ||||||
Year-to-date period ended: | ||||||||||||
28-Sep-13 | $ | 30 | $ | 12 | $ | 42 | ||||||
29-Sep-12 | $ | 31 | $ | 12 | $ | 43 | ||||||
Full year: | ||||||||||||
Fiscal year 2013 (projected) | $ | 45 | $ | 17 | $ | 62 | ||||||
Fiscal year 2012 (actual) | $ | 38 | $ | 13 | $ | 51 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||
Sep. 28, 2013 | ||||
Income Taxes [Abstract] | ' | |||
Reconciliation of Total Gross Unrecognized Tax Benefits [Table Text Block] | ' | |||
(millions) | ||||
29-Dec-12 | $ | 80 | ||
Tax positions related to current year: | ||||
Additions | 8 | |||
Reductions | - | |||
Tax positions related to prior years: | ||||
Additions | 11 | |||
Reductions | -5 | |||
Settlements | -11 | |||
28-Sep-13 | $ | 83 | ||
Derivative_Instruments_and_Fai1
Derivative Instruments and Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 28, 2013 | ||||||||||||||||||||
Derivative Instruments and Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
Schedule of Total Notional Amounts of the Company's Derivative Instruments [Table Text Block] | ' | |||||||||||||||||||
September 28, | December 29, | |||||||||||||||||||
(millions) | 2013 | 2012 | ||||||||||||||||||
Foreign currency exchange contracts | $ | 645 | $ | 570 | ||||||||||||||||
Interest rate contracts | 2,400 | 2,150 | ||||||||||||||||||
Commodity contracts | 383 | 320 | ||||||||||||||||||
Total | $ | 3,428 | $ | 3,040 | ||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis [Table Text Block] | ' | |||||||||||||||||||
The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of September 28, 2013 and December 29, 2012: | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
28-Sep-13 | 29-Dec-12 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | 4 | $ | 4 | $ | - | $ | 4 | $ | 4 | ||||||||
Interest rate contracts (a): | ||||||||||||||||||||
Other assets | - | - | - | - | 64 | 64 | ||||||||||||||
Total assets | $ | - | $ | 4 | $ | 4 | $ | - | $ | 68 | $ | 68 | ||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other current liabilities | $ | - | $ | -8 | $ | -8 | $ | - | $ | -3 | $ | -3 | ||||||||
Interest rate contracts: | ||||||||||||||||||||
Other liabilities | - | -43 | -43 | - | - | - | ||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | - | -10 | -10 | - | -11 | -11 | ||||||||||||||
Other liabilities | - | -21 | -21 | - | -27 | -27 | ||||||||||||||
Total liabilities | $ | - | $ | -82 | $ | -82 | $ | - | $ | -41 | $ | -41 | ||||||||
(a) The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $2.5 billion as of September 28, 2013 and $2.3 billion as of December 29, 2012. | ||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
28-Sep-13 | 29-Dec-12 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | 1 | $ | 1 | $ | - | $ | - | $ | - | ||||||||
Commodity contracts: | ||||||||||||||||||||
Other prepaid assets | 5 | - | 5 | 5 | - | 5 | ||||||||||||||
Total assets | $ | 5 | $ | 1 | $ | 6 | $ | 5 | $ | - | $ | 5 | ||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other current liabilities | $ | - | $ | -1 | $ | -1 | $ | - | $ | - | $ | - | ||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | -9 | - | -9 | -3 | - | -3 | ||||||||||||||
Total liabilities | $ | -9 | $ | -1 | $ | -10 | $ | -3 | $ | - | $ | -3 | ||||||||
Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Income [Table Text Block] | ' | |||||||||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended September 28, 2013 and September 29, 2012 was as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income (a) | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | -1 | $ | 2 | |||||||||||||||
Interest rate contracts | Interest expense | -3 | 4 | |||||||||||||||||
Total | $ | -4 | $ | 6 | ||||||||||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | Location of gain | Gain (loss) | |||||||||||||||||
Gain (loss) | (loss) reclassified | reclassified from | (loss) recognized | recognized in | ||||||||||||||||
(millions) | recognized in AOCI | from AOCI | AOCI into income | in income (a) | income (a) | |||||||||||||||
Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign currency exchange contracts | $ | -4 | $ | -4 | COGS | $ | 2 | $ | -1 | Other income (expense), net | $ | - | $ | - | ||||||
Foreign currency exchange contracts | -3 | - | SGA expense | 1 | 1 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | - | - | Interest expense | 1 | 1 | N/A | - | - | ||||||||||||
Commodity contracts | - | 3 | COGS | -2 | -4 | Other income (expense), net | - | - | ||||||||||||
Total | $ | -7 | $ | -1 | $ | 2 | $ | -3 | $ | - | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | $ | - | $ | -1 | ||||||||||||||||
Total | $ | - | $ | -1 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 1 | $ | - | |||||||||||||||
Commodity contracts | COGS | -2 | -3 | |||||||||||||||||
Total | $ | -1 | $ | -3 | ||||||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended September 28, 2013 and September 29, 2012 were as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income(a) | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 2 | $ | 1 | |||||||||||||||
Interest rate contracts | Interest expense | -2 | 4 | |||||||||||||||||
Total | $ | - | $ | 5 | ||||||||||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | Location of gain | Gain (loss) | |||||||||||||||||
Gain (loss) | (loss) reclassified | reclassified from | (loss) recognized | recognized in | ||||||||||||||||
(millions) | recognized in AOCI | from AOCI | AOCI into income | in income (a) | income(a) | |||||||||||||||
Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | Sep. 28, | Sep. 29, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||
Foreign currency exchange contracts | $ | 8 | $ | -5 | COGS | $ | 7 | $ | -1 | Other income (expense), net | $ | - | $ | - | ||||||
Foreign currency exchange contracts | -2 | 1 | SGA expense | 1 | 2 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | - | - | Interest expense | 3 | 3 | N/A | - | - | ||||||||||||
Commodity contracts | -1 | -5 | COGS | -7 | -16 | Other income (expense), net | - | - | ||||||||||||
Total | $ | 5 | $ | -9 | $ | 4 | $ | -12 | $ | - | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | $ | - | $ | 5 | ||||||||||||||||
Total | $ | - | $ | 5 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 28, | Sep. 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Foreign currency exchange contracts | COGS | $ | 2 | $ | - | |||||||||||||||
Interest rate contracts | Interest expense | - | -1 | |||||||||||||||||
Commodity contracts | COGS | -26 | -3 | |||||||||||||||||
Total | $ | -24 | $ | -4 | ||||||||||||||||
Schedule of Fair Value of Long-term Debt [Table Text Block] | ' | |||||||||||||||||||
(millions) | Fair Value | Carrying Value | ||||||||||||||||||
Current maturities of long-term debt | $ | 298 | $ | 298 | ||||||||||||||||
Long-term debt | 6,794 | 6,348 | ||||||||||||||||||
Total | $ | 7,092 | $ | 6,646 |
Reportable_Segments_Tables
Reportable Segments (Tables) | 9 Months Ended | ||||||||||||
Sep. 28, 2013 | |||||||||||||
Reportable Segments [Abstract] | ' | ||||||||||||
Schedule of Selected Operating Segment Information [Table Text Block] | ' | ||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||
September 28, | September 29, | September 28, | September 29, | ||||||||||
(millions) | 2013 | 2012 | 2013 | 2012 | |||||||||
Net sales | |||||||||||||
U.S. Morning Foods | $ | 883 | $ | 903 | $ | 2,657 | $ | 2,692 | |||||
U.S. Snacks | 886 | 908 | 2,704 | 2,544 | |||||||||
U.S. Specialty | 281 | 264 | 932 | 864 | |||||||||
North America Other | 382 | 388 | 1,173 | 1,125 | |||||||||
Europe | 729 | 685 | 2,144 | 1,836 | |||||||||
Latin America | 302 | 292 | 914 | 836 | |||||||||
Asia Pacific | 253 | 280 | 767 | 737 | |||||||||
Consolidated | $ | 3,716 | $ | 3,720 | $ | 11,291 | $ | 10,634 | |||||
Operating profit | |||||||||||||
U.S. Morning Foods | $ | 132 | $ | 134 | $ | 475 | $ | 465 | |||||
U.S. Snacks | 105 | 117 | 341 | 361 | |||||||||
U.S. Specialty | 70 | 62 | 210 | 189 | |||||||||
North America Other | 70 | 67 | 223 | 207 | |||||||||
Europe | 74 | 76 | 220 | 210 | |||||||||
Latin America | 39 | 36 | 129 | 135 | |||||||||
Asia Pacific | 25 | 29 | 63 | 79 | |||||||||
Total Reportable Segments | 515 | 521 | 1,661 | 1,646 | |||||||||
Corporate | -11 | -8 | -84 | -87 | |||||||||
Consolidated | $ | 504 | $ | 513 | $ | 1,577 | $ | 1,559 | |||||
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | 31-May-12 | Sep. 28, 2013 | Sep. 28, 2013 |
Europe [Member] | Europe [Member] | Asia Pacific [Member] | Asia Pacific [Member] | Net Sales [Member] | Net Sales [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Selling General and Administrative Expenses [Member] | Selling General and Administrative Expenses [Member] | Pringles [Member] | Pringles [Member] | Pringles [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,695 | ' | ' |
Purchase price net of cash and cash equivalents, subject to purchase price adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,683 | ' | ' |
Purchase price net of cash and cash equivalents including purchase price adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,668 |
Purchase price adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 |
Goodwill translation adjustments | ' | -10 | ' | -15 | ' | 1 | ' | -8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income foreign currency translation component | ' | ' | ' | -15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other non-current liabilities purchase price allocation adjustment | 15 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill additions | 13 | 24 | ' | ' | 10 | 10 | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current deferred tax assets purchase price allocation adjustment | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Integration-related costs | 12 | 48 | ' | ' | ' | ' | ' | ' | 2 | 5 | 3 | 9 | 7 | 34 | ' | ' | ' |
Net Revenues contributed by Pringles acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 422 | 1,216 |
Net Earnings contributed by Pringles acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49 | 97 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets Amortization Expense Next Twelve Months | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets Amortization Expense Year Two | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets Amortization Expense Year Three | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets Amortization Expense Year Four | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets Amortization Expense Year Five | 9 | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | $6 | $1 | ' | ' | $2 | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Pro Forma Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2012 | Sep. 29, 2012 |
Business Acquisition, Pro Forma Information [Abstract] | ' | ' |
Net Sales | $3,720 | $11,299 |
Net income | 318 | 1,041 |
Net income (loss) attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Kellogg Company | $318 | $1,041 |
Net earnings per share | $0.89 | $2.90 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Carrying Amount of Goodwill) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | $5,038 | [1],[2] | ' | |
Goodwill additions | 13 | 24 | ' | ||
Currency translation adjustment | ' | -10 | -15 | ||
Ending Balance | 5,052 | 5,052 | 5,038 | [1],[2] | |
U.S. Morning Foods [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 133 | ' | ||
Goodwill additions | ' | 0 | ' | ||
Currency translation adjustment | ' | 0 | ' | ||
Ending Balance | 133 | 133 | ' | ||
U.S. Snacks [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 3,767 | ' | ||
Goodwill additions | ' | 11 | ' | ||
Currency translation adjustment | ' | 0 | ' | ||
Ending Balance | 3,778 | 3,778 | ' | ||
U.S. Specialty [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 82 | ' | ||
Goodwill additions | ' | 0 | ' | ||
Currency translation adjustment | ' | 0 | ' | ||
Ending Balance | 82 | 82 | ' | ||
North America Other [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 280 | ' | ||
Goodwill additions | ' | 0 | ' | ||
Currency translation adjustment | ' | -1 | ' | ||
Ending Balance | 279 | 279 | ' | ||
Europe [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 438 | ' | ||
Goodwill additions | 10 | 10 | ' | ||
Currency translation adjustment | ' | 1 | ' | ||
Ending Balance | 449 | 449 | ' | ||
Latin America [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 92 | ' | ||
Goodwill additions | ' | 0 | ' | ||
Currency translation adjustment | ' | -2 | ' | ||
Ending Balance | 90 | 90 | ' | ||
Asia Pacific [Member] | ' | ' | ' | ||
Change in carrying amount of goodwill | ' | ' | ' | ||
Beginning Balance | ' | 246 | ' | ||
Goodwill additions | 3 | 3 | ' | ||
Currency translation adjustment | ' | -8 | ' | ||
Ending Balance | $241 | $241 | ' | ||
[1] | Condensed from audited financial statements. | ||||
[2] | December 29, 2012 balances have been revised as discussed in Note 2 to the financial statements. |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Intangible Assets Subject to Amortization) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | $163 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 163 | ' | |
Accumulated amortization, beginning balance | 53 | [1] | ' |
Amortization expense | 6 | 1 | |
Accumulated amortization, ending balance | 59 | ' | |
Intangible assets subject to amortization net, beginning balance | 110 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | -6 | -1 | |
Intangible assets subject to amortization net, ending balance | 104 | ' | |
U.S. Morning Foods [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 28 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 28 | ' | |
Accumulated amortization, beginning balance | 28 | ' | |
Amortization expense | 0 | ' | |
Accumulated amortization, ending balance | 28 | ' | |
Intangible assets subject to amortization net, beginning balance | 0 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | 0 | ' | |
Intangible assets subject to amortization net, ending balance | 0 | ' | |
U.S. Snacks [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 70 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 70 | ' | |
Accumulated amortization, beginning balance | 12 | ' | |
Amortization expense | 3 | ' | |
Accumulated amortization, ending balance | 15 | ' | |
Intangible assets subject to amortization net, beginning balance | 58 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | -3 | ' | |
Intangible assets subject to amortization net, ending balance | 55 | ' | |
U.S. Specialty [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 0 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 0 | ' | |
Accumulated amortization, beginning balance | 0 | ' | |
Amortization expense | 0 | ' | |
Accumulated amortization, ending balance | 0 | ' | |
Intangible assets subject to amortization net, beginning balance | 0 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | 0 | ' | |
Intangible assets subject to amortization net, ending balance | 0 | ' | |
North America Other [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 5 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 5 | ' | |
Accumulated amortization, beginning balance | 3 | ' | |
Amortization expense | 0 | ' | |
Accumulated amortization, ending balance | 3 | ' | |
Intangible assets subject to amortization net, beginning balance | 2 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | 0 | ' | |
Intangible assets subject to amortization net, ending balance | 2 | ' | |
Europe [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 43 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 43 | ' | |
Accumulated amortization, beginning balance | 3 | ' | |
Amortization expense | 2 | ' | |
Accumulated amortization, ending balance | 5 | ' | |
Intangible assets subject to amortization net, beginning balance | 40 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | -2 | ' | |
Intangible assets subject to amortization net, ending balance | 38 | ' | |
Latin America [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 7 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 7 | ' | |
Accumulated amortization, beginning balance | 7 | ' | |
Amortization expense | 0 | ' | |
Accumulated amortization, ending balance | 7 | ' | |
Intangible assets subject to amortization net, beginning balance | 0 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | 0 | ' | |
Intangible assets subject to amortization net, ending balance | 0 | ' | |
Asia Pacific [Member] | ' | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | ' | |
Gross carrying amount, beginning balance | 10 | ' | |
Currency translation adjustment | 0 | ' | |
Gross carrying amount, ending balance | 10 | ' | |
Accumulated amortization, beginning balance | 0 | ' | |
Amortization expense | 1 | ' | |
Accumulated amortization, ending balance | 1 | ' | |
Intangible assets subject to amortization net, beginning balance | 10 | ' | |
Currency translation adjustment | 0 | ' | |
Amortization expense | -1 | ' | |
Intangible assets subject to amortization net, ending balance | $9 | ' | |
[1] | Condensed from audited financial statements. |
Goodwill_and_Other_Intangible_6
Goodwill and Other Intangible Assets (Intangible Assets not Subject to Amortization) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | $2,249 |
Currency translation adjustment | 11 |
Ending Balance | 2,260 |
U.S. Morning Foods [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 63 |
Currency translation adjustment | 0 |
Ending Balance | 63 |
U.S. Snacks [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 1,625 |
Currency translation adjustment | 0 |
Ending Balance | 1,625 |
U.S. Specialty [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 0 |
Currency translation adjustment | 0 |
Ending Balance | 0 |
North America Other [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 95 |
Currency translation adjustment | 0 |
Ending Balance | 95 |
Europe [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 466 |
Currency translation adjustment | 11 |
Ending Balance | 477 |
Latin America [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 0 |
Currency translation adjustment | 0 |
Ending Balance | 0 |
Asia Pacific [Member] | ' |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | 0 |
Currency translation adjustment | 0 |
Ending Balance | $0 |
Exit_or_Disposal_Activities_On
Exit or Disposal Activities (On-Going Initiatives) (Details) (COGS and SGA Programs [Member], USD $) | 3 Months Ended | 9 Months Ended | 16 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | ($1) | $1 | $9 | $5 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 29 |
Restructuring and related cost, expected cost remaining | ' | ' | 2 | ' | ' |
Restructuring reserve | 0 | ' | 0 | ' | 0 |
U.S. Morning Foods [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | -1 | 0 | 2 | 1 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 3 |
U.S. Snacks [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 0 | 1 | 1 | 3 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 3 |
Europe [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 0 | 0 | 0 | 1 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 0 |
Asia Pacific [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 0 | 0 | 6 | 0 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 23 |
Employee related costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | -1 | 0 | 3 | 3 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 6 |
Asset related costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 0 | 1 | 4 | 2 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | 21 |
Other costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 0 | 0 | 2 | 0 | ' |
Restructuring and related costs incurred to date | ' | ' | ' | ' | $2 |
Exit_or_Disposal_Activities_Eu
Exit or Disposal Activities (Europe Supply Chain Initiative) (Details) (Europe Supply Chain Initiative [Member], Europe [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and Related Cost, Incurred Cost | $2 | $2 |
Restructuring and related costs, expected cost | ' | 6 |
Restructuring and related cost, expected cost remaining | ' | 4 |
Restructuring reserve | 2 | 2 |
Employee related costs [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Restructuring and Related Cost, Incurred Cost | $2 | $2 |
Exit_or_Disposal_Activities_Pr
Exit or Disposal Activities (Project K) (Details) (Project K [Member], USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | $17 | $17 | ' |
Restructuring reserve | 6 | 6 | 0 |
Restructuring plan, number of years | ' | '4 years | ' |
Maximum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 1,400 | ' |
Estimated cash costs for program | ' | 1,100 | ' |
Minimum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 1,200 | ' |
Estimated cash costs for program | ' | 900 | ' |
U.S. Morning Foods [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 5 | 5 | ' |
Restructuring and related cost, expected cost allocation | ' | 18.00% | ' |
U.S. Snacks [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 1 | 1 | ' |
Restructuring and related cost, expected cost allocation | ' | 10.00% | ' |
U.S. Specialty [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 1 | 1 | ' |
Restructuring and related cost, expected cost allocation | ' | 2.00% | ' |
North America Other [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, expected cost allocation | ' | 3.00% | ' |
Europe [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, expected cost allocation | ' | 8.00% | ' |
Latin America [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 3 | 3 | ' |
Restructuring and related cost, expected cost allocation | ' | 5.00% | ' |
Asia Pacific [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 1 | 1 | ' |
Restructuring and related cost, expected cost allocation | ' | 7.00% | ' |
Corporate [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 6 | 6 | ' |
Restructuring and related cost, expected cost allocation | ' | 47.00% | ' |
Employee related costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 8 | 8 | ' |
Employee related costs [Member] | Maximum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 475 | ' |
Employee related costs [Member] | Minimum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 425 | ' |
Asset related costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 0 | 0 | ' |
Asset related costs [Member] | Maximum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 500 | ' |
Asset related costs [Member] | Minimum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 450 | ' |
Other costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related cost, incurred cost | 9 | 9 | ' |
Other costs [Member] | Maximum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | 425 | ' |
Other costs [Member] | Minimum [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring and related costs, expected cost | ' | $325 | ' |
Exit_of_Disposal_Activities_Pr
Exit of Disposal Activities (Project K Reserves) (Details) (Project K [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Project K [Member] | ' |
Restructuring Reserve Roll Forward | ' |
Restructuring reserve, beginning balance | $0 |
Restructuring costs incurred | 17 |
Restructuring, cash payments | -11 |
Restructuring reserve, ending balance | $6 |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | Dec. 31, 2012 | Apr. 30, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | 31-May-13 |
December 2012 Share Repurchase Program [Member] | April 2013 Share Repurchase Program [Member] | May 2013 Accelerated Share Repurchase Agreement [Member] | May 2013 Accelerated Share Repurchase Agreement [Member] | May 2013 Accelerated Share Repurchase Agreement [Member] | ||||||
Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive potential common shares excluded from reconciliation | 6 | 16 | 5 | 17 | ' | ' | ' | ' | ' | ' |
Equity Class Of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | ' | ' | ' | $300 | $1,000 | ' | ' | ' |
Accelerated share repurchases payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 355 |
Common stock repurchases shares | ' | ' | 9 | 1 | ' | ' | ' | 0.6 | 4.9 | ' |
Common stock repurchases value | ' | ' | $544 | $63 | $63 | ' | ' | ' | ' | ' |
Equity_Earnings_per_Share_Deta
Equity (Earnings per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||
Equity [Abstract] | ' | ' | ' | ' | ||
Net income, basic | $326 | $318 | [1] | $989 | $993 | [1] |
Average shares outstanding, basic | 362 | 358 | 363 | 357 | ||
Net earnings per share, basic | $0.90 | $0.89 | [1] | $2.72 | $2.78 | [1] |
Average shares outstanding, dilutive potential common shares | 2 | 1 | 3 | 2 | ||
Net earnings per share, dilutive potential common shares | $0 | $0 | [1] | ($0.02) | ($0.01) | [1] |
Net income, diluted | $326 | $318 | [1] | $989 | $993 | [1] |
Average shares outstanding, diluted | 364 | 359 | 366 | 359 | ||
Net earnings per share, diluted | $0.90 | $0.89 | [1] | $2.70 | $2.77 | [1] |
[1] | 2012 amounts have been revised as discussed in Note 7 to the financial statements. |
Equity_Comprehensive_Income_De
Equity - Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | ||||
Consolidated Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ||||
Net income | $326 | $318 | $989 | $993 | $961 | ||||
Other comprehensive income, pre-tax: | ' | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, pre-tax | 63 | 101 | [1] | -28 | [1] | 75 | [1] | ' | |
Cash flow hedges, pre-tax: | ' | ' | ' | ' | ' | ||||
Unrealized gain (loss) on cash flow hedges, pre-tax | -7 | -1 | 5 | -9 | ' | ||||
Reclassification to net income, pre-tax | -2 | 3 | -4 | 12 | ' | ||||
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | ' | ' | ' | ' | ' | ||||
Net experience gain (loss), pre-tax | 0 | 0 | [1] | 0 | -3 | [1] | ' | ||
Prior service credit (cost), pre-tax | -1 | 0 | [1] | -1 | -10 | [1] | ' | ||
Postretirement and Postemployment Benefits Reclassification To Net Income Pre Tax [Abstract] | ' | ' | ' | ' | ' | ||||
Net experience loss, pre-tax | 1 | 2 | [1] | 4 | 4 | [1] | ' | ||
Prior service cost, pre-tax | 4 | 2 | [1] | 10 | 9 | [1] | ' | ||
Other Comprehensive Income (Loss), before Tax | 58 | 107 | -14 | 78 | ' | ||||
Other comprehensive income (loss), tax (expense) or benefit | ' | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, tax (expense) or benefit | 0 | 0 | 0 | 2 | ' | ||||
Cash flow hedges, tax effect: | ' | ' | ' | ' | ' | ||||
Unrealized gain (loss) on cash flow hedges, tax (expense) or benefit | 3 | 0 | 0 | 3 | ' | ||||
Reclassification to net earnings - tax (expense) or benefit | 0 | -1 | 0 | -4 | ' | ||||
Postretirement and Postemployment Benefit Amounts Arising During Period Tax [Abstract] | ' | ' | ' | ' | ' | ||||
Net experience gain (loss), tax (expense) or benefit | 0 | 0 | [1] | 0 | 1 | [1] | ' | ||
Prior service credit (cost), tax (expense) or benefit | 0 | 0 | [1] | 0 | 3 | [1] | ' | ||
Postretirement and Postemployment Benefits Reclassification To Net Income Tax [Abstract] | ' | ' | ' | ' | ' | ||||
Net experience loss, tax (expense) or benefit | 0 | 0 | [1] | 0 | 0 | [1] | ' | ||
Prior service cost, tax (expense) or benefit | -1 | -1 | [1] | -3 | -3 | [1] | ' | ||
Other Comprehensive Income (Loss), Tax | 2 | -2 | -3 | 2 | ' | ||||
Other comprehensive income (loss), after tax | ' | ' | ' | ' | ' | ||||
Foreign currency translation adjustments, after-tax | 63 | 101 | [1] | -28 | [1] | 77 | [1] | ' | |
Cash flow hedges, after-tax: | ' | ' | ' | ' | ' | ||||
Unrealized gain (loss) on cash flow hedges, after-tax | -4 | -1 | 5 | -6 | ' | ||||
Reclassification to net income, after-tax | -2 | 2 | -4 | 8 | ' | ||||
Postretirement and Postemployment Benefit Amounts Arising During Period After Tax [Abstract] | ' | ' | ' | ' | ' | ||||
Net experience gain (loss), after-tax | 0 | 0 | [1] | 0 | -2 | [1] | ' | ||
Prior service credit (cost), after-tax | -1 | 0 | [1] | -1 | -7 | [1] | ' | ||
Postretirement and Postemployment Benefits Reclassification To Net Income After Tax [Abstract] | ' | ' | ' | ' | ' | ||||
Net experience loss, after-tax | 1 | 2 | [1] | 4 | 4 | [1] | ' | ||
Prior service cost, after-tax | 3 | 1 | [1] | 7 | 6 | [1] | ' | ||
Other comprehensive income (loss) | 60 | 105 | -17 | [2] | 80 | 60 | [2] | ||
Comprehensive income | $386 | $423 | $972 | $1,073 | ' | ||||
[1] | Amounts have been revised as discussed in Note 2 and Note 7 to the financial statements. | ||||||||
[2] | December 29, 2012 balances have been revised as discussed in Note 2 to the financial statements. |
Equity_Reclassification_of_AOC
Equity - Reclassification of AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Reclassification to net income, pre-tax | ($2) | $3 | ($4) | $12 | ||
Tax (expense) benefit | 0 | 1 | 0 | 4 | ||
Net of tax | -2 | 2 | -4 | 8 | ||
Postretirement and Postemployment Benefits Reclassification To Net Income Pre Tax [Abstract] | ' | ' | ' | ' | ||
Net experience loss, pre-tax | 1 | 2 | [1] | 4 | 4 | [1] |
Prior service cost, pre-tax | 4 | 2 | [1] | 10 | 9 | [1] |
Total before tax | 5 | ' | 14 | ' | ||
Postretirement and Postemployment Benefits Reclassification To Net Income After Tax [Abstract] | ' | ' | ' | ' | ||
Tax (expense) benefit | -1 | ' | -3 | ' | ||
Net of tax | 4 | ' | 11 | ' | ||
Total reclassifications for the quarter, net of tax | 2 | ' | 7 | ' | ||
Cash Flow Hedging [Member] | Foreign Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Reclassification to net income, pre-tax | -2 | ' | -7 | ' | ||
Cash Flow Hedging [Member] | Foreign Currency Exchange Contracts [Member] | Selling General and Administrative Expenses [Member] | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Reclassification to net income, pre-tax | -1 | ' | -1 | ' | ||
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Reclassification to net income, pre-tax | -1 | ' | -3 | ' | ||
Cash Flow Hedging [Member] | Commodity Contracts [Member] | Cost of Goods Sold [Member] | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||
Reclassification to net income, pre-tax | $2 | ' | $7 | ' | ||
[1] | Amounts have been revised as discussed in Note 2 and Note 7 to the financial statements. |
Equity_Accumulated_Other_Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Millions, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | |
Foreign currency translation adjustments | ($860) | ($832) | |
Cash flow hedges - unrealized net gain (loss) | -2 | -3 | |
Postretirement and postemployment benefits: | ' | ' | |
Net experience loss | -25 | -29 | |
Prior Service Cost | -76 | -82 | |
Total accumulated other comprehensive income (loss) | ($963) | ($946) | [1],[2] |
[1] | Condensed from audited financial statements. | ||
[2] | December 29, 2012 balances have been revised as discussed in Note 2 to the financial statements. |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | 31-May-13 | Feb. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | 31-May-13 | Sep. 28, 2013 | Sep. 28, 2013 | 31-May-13 | Mar. 30, 2013 | Mar. 30, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | 31-May-13 | 31-May-13 | Sep. 28, 2013 | Sep. 28, 2013 | 31-May-13 | 31-May-13 | Sep. 28, 2013 | Sep. 28, 2013 |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | 3.25% U.S. Dollar Notes due 2018 [Member] | 3.25% U.S. Dollar Notes due 2018 [Member] | 3.25% U.S. Dollar Notes due 2018 [Member] | 3.25% U.S. Dollar Notes due 2018 [Member] | 3.25% U.S. Dollar Notes due 2018 [Member] | Libor plus .23% due February 2015 [Member] | 2.75% Ten Year U.S. Dollar Notes [Member] | 4.25% U.S. Dollar Notes [Member] | 4% Ten Year U.S. Dollar Notes due 2020 [Member] | 1.75% Five Year U.S. Dollar Notes due 2017 [Member] | 4.45% Seven Year U.S. Dollar Notes due 2016 [Member] | 4.45% Seven Year U.S. Dollar Notes due 2016 [Member] | 4.45% Seven Year U.S. Dollar Notes due 2016 [Member] | 4.45% Seven Year U.S. Dollar Notes due 2016 [Member] | 1.875% Five Year U.S. Dollar Notes due 2016 [Member] | 1.875% Five Year U.S. Dollar Notes due 2016 [Member] | 1.875% Five Year U.S. Dollar Notes due 2016 [Member] | 1.875% Five Year U.S. Dollar Notes due 2016 [Member] | 4.15% Ten Year U.S. Dollar Notes due 2019 [Member] | 3.125% Ten Year U.S. Dollar Notes Due 2022 [Member] | ||||||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain gain on termination of interest rate fair value hedge | ' | ' | $41 | ' | ' | ' | ' | ' | ' | ' | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amounts of interest rate swaps | 3,428 | ' | ' | ' | 3,040 | 1,900 | 1,400 | ' | ' | 150 | ' | 250 | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' | ' | ' | 500 | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument term, in years | ' | ' | ' | ' | ' | ' | ' | '7 years | '7 years | ' | ' | ' | ' | '10 years | ' | '10 years | '5 years | '7 years | '7 years | ' | ' | '5 years | '5 years | ' | ' | '10 years | '10 years |
Debt instrument maturity year | ' | ' | ' | ' | ' | ' | ' | '2018 | '2018 | ' | '2018 | ' | '2015 | ' | '2013 | '2020 | '2017 | '2016 | '2016 | ' | ' | '2016 | '2016 | ' | ' | '2019 | '2022 |
Debt instrument, stated interest rate | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.25% | 3.25% | 3.25% | ' | ' | 2.75% | 4.25% | 4.00% | 1.75% | 4.45% | 4.45% | 4.45% | ' | 1.88% | 1.88% | 1.88% | ' | 4.15% | 3.13% |
Debt instrument LIBOR plus rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus 0.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | 1.89% | 1.89% | ' | ' | ' | ' | ' | ' | 2.91% | 1.35% | 3.46% | 3.46% | ' | ' | 1.01% | 1.01% | ' | ' | 2.74% | 2.74% |
Reductions of long-term debt | 761 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 749 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate net proceeds after debt discount and commissions | ' | ' | ' | $645 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Components_of_Notes_Payab
Debt (Components of Notes Payable) (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Millions, unless otherwise specified | |||
Short-term Debt [Line Items] | ' | ' | |
Principal amount | $756 | $1,065 | [1] |
Euro Commercial Paper [Member] | ' | ' | |
Short-term Debt [Line Items] | ' | ' | |
Principal amount | 142 | 159 | |
Effective interest rate | 0.20% | 0.18% | |
U.S. Commercial Paper [Member] | ' | ' | |
Short-term Debt [Line Items] | ' | ' | |
Principal amount | 573 | 853 | |
Effective interest rate | 0.21% | 0.26% | |
Bank Borrowings [Member] | ' | ' | |
Short-term Debt [Line Items] | ' | ' | |
Principal amount | $41 | $53 | |
[1] | Condensed from audited financial statements. |
Stock_Compensation_Schedule_of
Stock Compensation (Schedule of Compensation Expense for Equity Programs and Related Tax Benefits) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Stock Compensation [Abstract] | ' | ' | ' | ' |
Pre-tax compensation expense | $10 | $10 | $31 | $32 |
Related income tax benefit | 4 | 4 | 12 | 12 |
Non-vested stock-based compensation awards not yet recognized | $56 | ' | $56 | ' |
Weighted-average period of recognition, years | ' | ' | '2 years | ' |
Stock_Compensation_Summary_of_
Stock Compensation (Summary of Share-based Compensation) (Details) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Stock Compensation [Abstract] | ' | ' |
Outstanding, beginning of period - Shares | 25 | 24 |
Granted - Shares | 6 | 6 |
Stock options exercised and other in shares | -10 | -2 |
Forfeitures and expirations - Shares | -1 | -1 |
Outstanding, end of period - Shares | 20 | 27 |
Exercisable, end of period - Shares | 10 | 17 |
Outstanding, beginning of period - Weighted-average exercise price | $50 | $48 |
Granted - Weighted-average exercise price | $60 | $52 |
Exercised - Weighted-average exercise price | $48 | $43 |
Forfeitures and expirations - Weighted-average exercise price | $55 | $53 |
Outstanding, end of period - Weighted-average exercise price | $53 | $49 |
Exercisable, end of period - Weighted-average exercise price | $50 | $48 |
Outstanding, end of period - Weighted-average remaining contractual term (years) | '7 years 2 months 12 days | '6 years 4 months 24 days |
Exercisable, end of period - Weighted-average remaining contractual term (years) | '5 years 6 months | '5 years 1 month 6 days |
Outstanding, end of period - Aggregate intrinsic value | $111 | $78 |
Exercisable, end of period - Aggregate intrinsic value | $88 | $78 |
Weighted-average fair value of options granted | $5.92 | $5.23 |
Stock_Compensation_Fair_Value_
Stock Compensation (Fair Value Assumptions) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Stock Compensation [Abstract] | ' | ' |
Weighted-average expected volatility | 15.00% | 16.00% |
Weighted-average expected term (years) | '7 years 5 months 8 days | '7 years 6 months 11 days |
Weighted-average risk-free interest rate | 1.49% | 1.60% |
Dividend yield | 2.90% | 3.30% |
Total intrinsic value of options exercised | $133 | $16 |
Stock_Compensation_Maximum_Fut
Stock Compensation (Maximum Future Value of Performance Shares) (Details) (USD $) | Feb. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 28, 2013 |
In Millions, except Share data, unless otherwise specified | 2010 Award [Member] | 2011 Award [Member] | 2012 Award [Member] | 2013 Award [Member] | 2013 Award [Member] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Maximum Future Value of Performance Shares | ' | $22 | $22 | ' | $25 |
Performance share grant target distribution | ' | ' | ' | ' | 210,000 |
Performance share based awards cumulative target period, in years | ' | ' | ' | '3 years | ' |
Grant-date fair value of shares that correspond with target grants | ' | ' | ' | ' | $54 |
Number of performance shares that could be issued on the vesting date, minimum | ' | ' | ' | ' | 0.00% |
Number of performance shares that could be issued on the vesting date, maximum | ' | ' | ' | ' | 200.00% |
Performance share award settlement in terms of original target | 40.00% | ' | ' | ' | ' |
Performance share award settlement in dollars | $4 | ' | ' | ' | ' |
Employee_Benefits_Components_o
Employee Benefits (Components of Company Plan Benefit Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Pension [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $33 | $28 | $101 | $82 |
Interest cost | 51 | 53 | 151 | 156 |
Expected return on plan assets | -90 | -86 | -269 | -257 |
Amortization of unrecognized prior service cost | 4 | 3 | 12 | 10 |
Total expense | -2 | -2 | -5 | -9 |
Other Nonpension Postretirement [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 8 | 7 | 25 | 20 |
Interest cost | 13 | 13 | 37 | 39 |
Expected return on plan assets | -21 | -21 | -65 | -63 |
Amortization of unrecognized prior service cost | 0 | -1 | -2 | -1 |
Total expense | 0 | -2 | -5 | -5 |
Postemployment [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 2 | 2 | 5 | 6 |
Interest cost | 1 | 1 | 3 | 3 |
Recognized net loss | 1 | 1 | 4 | 3 |
Total expense | $4 | $4 | $12 | $12 |
Employee_Benefits_Contribution
Employee Benefits (Contributions to Employee Benefit Plans) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Employer contributions to employee benefit plans | $6 | $10 | $42 | $43 | $51 |
Total current year projected employer contributions | ' | ' | 62 | ' | ' |
Pension [Member] | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Employer contributions to employee benefit plans | 2 | 7 | 30 | 31 | 38 |
Total current year projected employer contributions | ' | ' | 45 | ' | ' |
Nonpension Postretirement [Member] | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Employer contributions to employee benefit plans | 4 | 3 | 12 | 12 | 13 |
Total current year projected employer contributions | ' | ' | $17 | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Taxes [Abstract] | ' | ' | ' | ' |
Effective income tax rate | 27.00% | 29.00% | 29.00% | 29.00% |
Uncertain tax positions classified as a net current liability | $19 | ' | $19 | ' |
Projected additions | 10 | ' | 10 | ' |
Unrecognized tax benefits that would affect the Company's effective income tax rate | $60 | ' | $60 | ' |
Income_Taxes_Total_Gross_Unrec
Income Taxes (Total Gross Unrecognized Tax Benefits) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Income Taxes [Abstract] | ' |
Beginning balance | $80 |
Additions, current year | 8 |
Reductions, current year | 0 |
Additions, prior years | 11 |
Reductions, prior years | -5 |
Settlements | -11 |
Ending balance | $83 |
Income_Taxes_Income_Taxrelated
Income Taxes (Income Tax-related Interest Accrued) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Income Taxes [Abstract] | ' |
Interest accrued | $18 |
Increase in tax-related interest and penalties | 4 |
Cash settlements of tax-related interest and penalties | ($5) |
Derivative_Instruments_and_Fai2
Derivative Instruments and Fair Value Measurements (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 28, 2013 |
Derivative Instruments and Fair Value Measurements [Abstract] | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $8 |
Fair value of derivative instruments with credit-risk-related contingent features in a liability position | 59 |
Additional collateral required to be posted if the credit risk related contingent features were triggered | 54 |
Collateral already posted | $5 |
Five largest customers percentage of consolidated trade receivables | 27.00% |
Derivative_Instruments_and_Fai3
Derivative Instruments and Fair Value Measurements (Total Notional Amounts of the Company's Derivative Instruments) (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | $3,428 | $3,040 |
Foreign Currency Exchange Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | 645 | 570 |
Interest Rate Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | 2,400 | 2,150 |
Commodity Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | $383 | $320 |
Derivative_Instruments_and_Fai4
Derivative Instruments and Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | ||
Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | $4,000,000 | $68,000,000 | ||
Liabilities | -82,000,000 | -41,000,000 | ||
Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 6,000,000 | 5,000,000 | ||
Liabilities | -10,000,000 | -3,000,000 | ||
Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Level 1 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 5,000,000 | 5,000,000 | ||
Liabilities | -9,000,000 | -3,000,000 | ||
Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 4,000,000 | 68,000,000 | ||
Liabilities | -82,000,000 | -41,000,000 | ||
Level 2 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 1,000,000 | 0 | ||
Liabilities | -1,000,000 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 4,000,000 | 4,000,000 | ||
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 1,000,000 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Level 1 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 4,000,000 | 4,000,000 | ||
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Level 2 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 1,000,000 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -8,000,000 | -3,000,000 | ||
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -1,000,000 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | 0 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Level 1 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | 0 | 0 | ||
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -8,000,000 | -3,000,000 | ||
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Level 2 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -1,000,000 | 0 | ||
Interest Rate Contracts [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Fair value of the related hedged portion of long-term debt | 2,500,000,000 | 2,300,000,000 | ||
Interest Rate Contracts [Member] | Other Assets [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | [1] | 64,000,000 | [1] |
Interest Rate Contracts [Member] | Other Assets [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | 0 | ||
Interest Rate Contracts [Member] | Other Assets [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | [1] | 64,000,000 | [1] |
Interest Rate Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -43,000,000 | 0 | ||
Interest Rate Contracts [Member] | Other Liabilities [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | 0 | 0 | ||
Interest Rate Contracts [Member] | Other Liabilities [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -43,000,000 | 0 | ||
Commodity Contracts [Member] | Other Prepaid Assets [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 5,000,000 | 5,000,000 | ||
Commodity Contracts [Member] | Other Prepaid Assets [Member] | Level 1 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 5,000,000 | 5,000,000 | ||
Commodity Contracts [Member] | Other Prepaid Assets [Member] | Level 2 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Assets | 0 | 0 | ||
Commodity Contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -10,000,000 | -11,000,000 | ||
Commodity Contracts [Member] | Other Current Liabilities [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -9,000,000 | -3,000,000 | ||
Commodity Contracts [Member] | Other Current Liabilities [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | 0 | 0 | ||
Commodity Contracts [Member] | Other Current Liabilities [Member] | Level 1 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -9,000,000 | -3,000,000 | ||
Commodity Contracts [Member] | Other Current Liabilities [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -10,000,000 | -11,000,000 | ||
Commodity Contracts [Member] | Other Current Liabilities [Member] | Level 2 [Member] | Not Designated [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | 0 | 0 | ||
Commodity Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | -21,000,000 | -27,000,000 | ||
Commodity Contracts [Member] | Other Liabilities [Member] | Level 1 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | 0 | 0 | ||
Commodity Contracts [Member] | Other Liabilities [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Liabilities | ($21,000,000) | ($27,000,000) | ||
[1] | The fair value of the related hedged portion of the Company's long-term debt, a level 2 liability, was $2.5 billion as of September 28, 2013 and $2.3 billion as of December 29, 2012. |
Derivative_Instruments_and_Fai5
Derivative Instruments and Fair Value Measurements (The Effect of Derivative Instruments on the Consolidated Statement of Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Fair Value Hedging [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ($4) | [1] | $6 | [1] | $0 | [1] | $5 | [1] |
Fair Value Hedging [Member] | Foreign Currency Exchange Contracts [Member] | Other Income (Expense), Net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | -1 | [1] | 2 | [1] | 2 | [1] | 1 | [1] |
Fair Value Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | -3 | [1] | 4 | [1] | -2 | [1] | 4 | [1] |
Cash Flow Hedging [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | -7 | -1 | 5 | -9 | ||||
Gain (loss) reclassified from AOCI into income | 2 | -3 | 4 | -12 | ||||
Gain (loss) recognized in income | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cash Flow Hedging [Member] | Foreign Currency Exchange Contracts [Member] | Selling General and Administrative Expenses [Member] | Other Income (Expense), Net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | -3 | 0 | -2 | 1 | ||||
Gain (loss) reclassified from AOCI into income | 1 | 1 | 1 | 2 | ||||
Gain (loss) recognized in income | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cash Flow Hedging [Member] | Foreign Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | Other Income (Expense), Net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | -4 | -4 | 8 | -5 | ||||
Gain (loss) reclassified from AOCI into income | 2 | -1 | 7 | -1 | ||||
Gain (loss) recognized in income | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | 0 | 0 | 0 | 0 | ||||
Gain (loss) reclassified from AOCI into income | 1 | 1 | 3 | 3 | ||||
Gain (loss) recognized in income | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | Cost of Goods Sold [Member] | Other Income (Expense), Net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | 0 | 3 | -1 | -5 | ||||
Gain (loss) reclassified from AOCI into income | -2 | -4 | -7 | -16 | ||||
Gain (loss) recognized in income | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Net Investment Hedging [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | 0 | -1 | 0 | 5 | ||||
Net Investment Hedging [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | 0 | -1 | 0 | 5 | ||||
Not Designated [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | -1 | -3 | -24 | -4 | ||||
Not Designated [Member] | Foreign Currency Exchange Contracts [Member] | Other Income (Expense), Net [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | 1 | 0 | ' | ' | ||||
Not Designated [Member] | Foreign Currency Exchange Contracts [Member] | Cost of Goods Sold [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ' | ' | 2 | 0 | ||||
Not Designated [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ' | ' | 0 | -1 | ||||
Not Designated [Member] | Commodity Contracts [Member] | Cost of Goods Sold [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ($2) | ($3) | ($26) | ($3) | ||||
[1] | Includes the ineffective portion and amount excluded from effectiveness testing. |
Derivative_Instruments_and_Fai6
Derivative Instruments and Fair Value Measurements (Fair Value of Long-term Debt) (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | |
In Millions, unless otherwise specified | |||
Derivative Instruments and Fair Value Measurements [Abstract] | ' | ' | |
Current maturities of long-term debt, fair value | $298 | ' | |
Long-term debt, fair value | 6,794 | ' | |
Long-term debt fair value, total | 7,092 | ' | |
Current maturities of long-term debt, carrying value | 298 | 755 | [1] |
Long-term debt, carrying value | 6,348 | 6,082 | [1] |
Long-term debt total, carrying value | $6,646 | ' | |
[1] | Condensed from audited financial statements. |
Reportable_Segments_Reportable
Reportable Segments (Reportable Segment Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $3,716 | $3,720 | $11,291 | $10,634 |
Operating profit | 504 | 513 | 1,577 | 1,559 |
Reportable segments information | ' | ' | 'The Company currently manages its operations through eight operating segments that are based on product category or geographic location. These operating segments are evaluated for similarity with regards to economic characteristics, products, production processes, types or classes of customers, distribution methods and regulatory environments to determine if they can be aggregated into reportable segments. Beginning in the first quarter of 2013, the Kashi operating segment, which was formerly aggregated with the U.S. Morning Foods operating segment and reported as U.S. Morning Foods and Kashi, was eliminated due to a reorganization of the business. Kashi operating segment results of prior periods were recast between U.S. Morning Foods and U.S. Snacks to conform to the current presentation. The reportable segments are discussed in greater detail below. | ' |
Number of operating segments | ' | ' | 8 | ' |
Number of reportable segments | ' | ' | 3 | ' |
U.S. Morning Foods [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 883 | 903 | 2,657 | 2,692 |
Operating profit | 132 | 134 | 475 | 465 |
Reportable segments information | ' | ' | 'U.S. Morning Foods includes cereal, toaster pastries, health and wellness bars, and beverages generally marketed under the Kellogg’s name. | ' |
U.S. Snacks [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 886 | 908 | 2,704 | 2,544 |
Operating profit | 105 | 117 | 341 | 361 |
Reportable segments information | ' | ' | 'U.S. Snacks includes products such as cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks. | ' |
U.S. Specialty [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 281 | 264 | 932 | 864 |
Operating profit | 70 | 62 | 210 | 189 |
Reportable segments information | ' | ' | 'U.S. Specialty primarily represents the food service, convenience and Girl Scouts businesses. The food service business is mostly non-commercial, servicing institutions such as schools and hospitals. | ' |
North America Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 382 | 388 | 1,173 | 1,125 |
Operating profit | 70 | 67 | 223 | 207 |
Reportable segments information | ' | ' | 'North America Other represents the U.S. Frozen and Canada operating segments. As these operating segments are not considered economically similar enough to aggregate with other operating segments and are immaterial for separate disclosure, they have been grouped together as a single reportable segment. | ' |
Total Reportable Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating profit | 515 | 521 | 1,661 | 1,646 |
Europe [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 729 | 685 | 2,144 | 1,836 |
Operating profit | 74 | 76 | 220 | 210 |
Reportable segments information | ' | ' | 'Europe which consists principally of European countries; | ' |
Latin America [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 302 | 292 | 914 | 836 |
Operating profit | 39 | 36 | 129 | 135 |
Reportable segments information | ' | ' | 'Latin America which is comprised of Central and South America and includes Mexico; | ' |
Asia Pacific [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 253 | 280 | 767 | 737 |
Operating profit | 25 | 29 | 63 | 79 |
Reportable segments information | ' | ' | 'Asia Pacific which is comprised of South Africa, Australia and other Asian and Pacific markets. | ' |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating profit | ($11) | ($8) | ($84) | ($87) |