Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2014 | Oct. 25, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 27-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Registrant Name | 'KELLOGG CO | ' |
Entity Central Index Key | '0000055067 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Common Stock, Shares Outstanding | ' | 355,033,895 |
Consolidated_Balance_Sheet_Una
Consolidated Balance Sheet (Unaudited) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Millions, unless otherwise specified | |||
Current assets | ' | ' | |
Cash and cash equivalents | $426 | $273 | [1] |
Accounts receivable, net | 1,565 | 1,424 | [1] |
Inventories: | ' | ' | |
Raw materials and supplies | 348 | 319 | [1] |
Finished goods and materials in process | 860 | 929 | [1] |
Deferred income taxes | 207 | 195 | [1] |
Other prepaid assets | 166 | 127 | [1] |
Total current assets | 3,572 | 3,267 | [1] |
Property, net of accumulated depreciation of $5,717 and $5,501 | 3,790 | 3,856 | [1] |
Goodwill | 5,021 | 5,051 | [1] |
Other intangibles, net of accumulated amortization of $40 and $34 | 2,327 | 2,367 | [1] |
Pension | 512 | 419 | [1] |
Other assets | 550 | 514 | [1] |
Total assets | 15,772 | 15,474 | [1] |
Current liabilities | ' | ' | |
Current maturities of long-term debt | 607 | 289 | [1] |
Notes payable | 1,079 | 739 | [1] |
Accounts payable | 1,466 | 1,432 | [1] |
Accrued advertising and promotion | 497 | 476 | [1] |
Accrued income taxes | 56 | 69 | [1] |
Accrued salaries and wages | 293 | 327 | [1] |
Other current liabilities | 664 | 503 | [1] |
Total current liabilities | 4,662 | 3,835 | [1] |
Long-term debt | 5,963 | 6,330 | [1] |
Deferred income taxes | 943 | 928 | [1] |
Pension liability | 267 | 277 | [1] |
Nonpension postretirement benefits | 62 | 68 | [1] |
Other liabilities | 430 | 429 | [1] |
Commitments and contingencies | ' | ' | [1] |
Equity | ' | ' | |
Common stock, $.25 par value | 105 | 105 | [1] |
Capital in excess of par value | 656 | 626 | [1] |
Retained earnings | 7,161 | 6,749 | [1] |
Treasury stock, at cost | -3,523 | -2,999 | [1] |
Accumulated other comprehensive income (loss) | -1,016 | -936 | [1] |
Total Kellogg Company equity | 3,383 | 3,545 | [1] |
Noncontrolling interests | 62 | 62 | [1] |
Total equity | 3,445 | 3,607 | [1] |
Total liabilities and equity | $15,772 | $15,474 | [1] |
[1] | Condensed from audited financial statements. |
Consolidated_Balance_Sheet_Una1
Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Millions, except Per Share data, unless otherwise specified | |||
Consolidated Balance Sheet | ' | ' | |
Property, accumulated depreciation | $5,717 | $5,501 | [1] |
Other intangibles, accumulated amortization | $40 | $34 | [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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Consolidated Statement of Income | ' | ' | ' | ' |
Net sales | $3,639 | $3,716 | $11,066 | $11,291 |
Cost of goods sold | 2,347 | 2,266 | 6,859 | 6,971 |
Selling, general and administrative expense | 927 | 946 | 2,761 | 2,743 |
Operating profit | 365 | 504 | 1,446 | 1,577 |
Interest expense | 54 | 56 | 156 | 177 |
Other income (expense), net | 1 | 4 | 14 | -8 |
Income before income taxes | 312 | 452 | 1,304 | 1,392 |
Income taxes | 86 | 124 | 373 | 398 |
Earnings (loss) from joint ventures | -1 | -2 | -5 | -5 |
Net income | 225 | 326 | 926 | 989 |
Net income (loss) attributable to noncontrolling interests | 1 | 0 | 1 | 0 |
Net income attributable to Kellogg Company | $224 | $326 | $925 | $989 |
Per share amounts: | ' | ' | ' | ' |
Basic | $0.63 | $0.90 | $2.58 | $2.72 |
Diluted | $0.62 | $0.90 | $2.56 | $2.70 |
Dividends per share | $0.49 | $0.46 | $1.41 | $1.34 |
Average shares outstanding: | ' | ' | ' | ' |
Basic | 358 | 362 | 359 | 363 |
Diluted | 360 | 364 | 361 | 366 |
Actual shares outstanding at period end | 355 | 362 | 355 | 362 |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 |
Consolidated Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Net income | $225 | $326 | $926 | $989 | $1,808 |
Other comprehensive income, pre-tax: | ' | ' | ' | ' | ' |
Foreign currency translation adjustments, pre-tax | -87 | 63 | -54 | -28 | ' |
Cash flow hedges, pre-tax: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges, pre-tax | -2 | -7 | -26 | 5 | ' |
Reclassification to net income, pre-tax | 0 | -2 | -11 | -4 | ' |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | ' | ' | ' | ' | ' |
Prior service credit (cost), pre-tax | 19 | -1 | 10 | -1 | ' |
Postretirement and postemployment benefits reclassification to net income, pre-tax: | ' | ' | ' | ' | ' |
Net experience loss, pre-tax | 1 | 1 | 3 | 4 | ' |
Prior service cost, pre-tax | 2 | 4 | 8 | 10 | ' |
Other comprehensive income (loss), pre-tax | -67 | 58 | -70 | -14 | ' |
Other comprehensive income (loss), tax (expense) or benefit | ' | ' | ' | ' | ' |
Foreign currency translation adjustments, tax (expense) or benefit | -17 | ' | -17 | ' | ' |
Cash flow hedges, tax effect: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges, tax (expense) or benefit | 4 | 3 | 11 | 0 | ' |
Reclassification to net earnings - tax (expense) or benefit | 0 | ' | 3 | ' | ' |
Postretirement and postemployment benefit amounts arising during the period, tax effect: | ' | ' | ' | ' | ' |
Prior service credit (cost), tax (expense) or benefit | -7 | ' | -4 | ' | ' |
Postretirement and postemployment benefits reclassification to net income, tax effect: | ' | ' | ' | ' | ' |
Prior service cost, tax (expense) or benefit | -1 | -1 | -3 | -3 | ' |
Other comprehensive income (loss), tax (expense) or benefit | -21 | 2 | -10 | -3 | ' |
Other comprehensive income (loss), after tax | ' | ' | ' | ' | ' |
Foreign currency translation adjustments, after-tax | -104 | 63 | -71 | -28 | ' |
Cash flow hedges, after-tax: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges, after-tax | 2 | -4 | -15 | 5 | ' |
Reclassification to net income, after-tax | 0 | -2 | -8 | -4 | ' |
Postretirement and postemployment benefit amounts arising during the period, after-tax: | ' | ' | ' | ' | ' |
Prior service credit (cost), after-tax | 12 | -1 | 6 | -1 | ' |
Postretirement and postemployment benefits reclassification to net income, after-tax: | ' | ' | ' | ' | ' |
Net experience loss, after-tax | 1 | 1 | 3 | 4 | ' |
Prior service cost, after-tax | 1 | 3 | 5 | 7 | ' |
Other comprehensive income, after-tax | -88 | 60 | -80 | -17 | 10 |
Comprehensive income | $137 | $386 | $846 | $972 | ' |
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. 29, 2012 | $2,465 | $105 | $573 | $5,615 | ($2,943) | ($946) | $2,404 | $61 | ' | |
Balance, shares at Dec. 29, 2012 | ' | 420 | ' | ' | 58 | ' | ' | ' | ' | |
Common stock repurchases, shares | ' | ' | ' | ' | 9 | ' | ' | ' | ' | |
Common stock repurchases, value | -544 | ' | ' | ' | -544 | ' | -544 | ' | ' | |
Net income (loss) | 1,808 | ' | ' | 1,807 | ' | ' | 1,807 | 1 | 1,808 | |
Dividends | -653 | ' | ' | -653 | ' | ' | -653 | ' | ' | |
Other comprehensive income (loss) | 10 | ' | ' | ' | ' | 10 | 10 | ' | 10 | |
Stock compensation | 28 | ' | 28 | ' | ' | ' | 28 | ' | ' | |
Stock options exercised and other, shares | ' | ' | ' | ' | -10 | ' | ' | ' | ' | |
Stock options exercised and other, value | 493 | ' | 25 | -20 | 488 | ' | 493 | ' | ' | |
Balance, value at Dec. 28, 2013 | 3,607 | [1] | 105 | 626 | 6,749 | -2,999 | -936 | 3,545 | 62 | 1,818 |
Balance, shares at Dec. 28, 2013 | ' | 420 | ' | ' | 57 | ' | ' | ' | ' | |
Common stock repurchases, shares | 11 | ' | ' | ' | 11 | ' | ' | ' | ' | |
Common stock repurchases, value | -690 | ' | ' | ' | -690 | ' | -690 | ' | ' | |
Net income (loss) | 926 | ' | ' | ' | ' | ' | 925 | 1 | 926 | |
Dividends | -506 | ' | ' | -505 | ' | ' | -505 | -1 | ' | |
Other comprehensive income (loss) | -80 | ' | ' | ' | ' | -80 | -80 | ' | -80 | |
Stock compensation | 21 | ' | 21 | ' | ' | ' | 21 | ' | ' | |
Stock options exercised and other, shares | ' | ' | ' | ' | -3 | ' | ' | ' | ' | |
Stock options exercised and other, value | ' | ' | 9 | -8 | 166 | ' | 167 | ' | ' | |
Balance, value at Sep. 27, 2014 | $3,445 | $105 | $656 | $7,161 | ($3,523) | ($1,016) | $3,383 | $62 | $846 | |
Balance, shares at Sep. 27, 2014 | ' | 420 | ' | ' | 65 | ' | ' | ' | ' | |
[1] | 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. 27, 2014 | Sep. 28, 2013 | |
Operating activities | ' | ' | |
Net income | $926 | $989 | |
Adjustments to reconcile net income to operating cash flows: | ' | ' | |
Depreciation and amortization | 375 | 340 | |
Postretirement benefit plan expense (benefit) | -73 | -10 | |
Deferred income taxes | 2 | -27 | |
Other | 0 | 73 | |
Postretirement benefit plan contributions | -44 | -42 | |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' | |
Trade receivables | -122 | -113 | |
Inventories | 40 | 52 | |
Accounts payable | 34 | -2 | |
Accrued income taxes | 19 | 52 | |
Accrued interest expense | 48 | 33 | |
Accrued and prepaid advertising, promotion and trade allowances | 10 | -4 | |
Accrued salaries and wages | -33 | -9 | |
All other current assets and liabilities | -5 | 57 | |
Net cash provided by (used in) operating activities | 1,177 | 1,389 | |
Investing activities | ' | ' | |
Additions to properties | -355 | -363 | |
Other | 7 | -1 | |
Net cash provided by (used in) investing activities | -348 | -364 | |
Financing activities | ' | ' | |
Net issuances (reductions) of notes payable | 339 | -309 | |
Issuances of long-term debt | 952 | 645 | |
Reductions of long-term debt | -959 | -761 | |
Net issuances of common stock | 164 | 450 | |
Common stock repurchases | -690 | -544 | |
Cash dividends | -506 | -486 | |
Other | 12 | 23 | |
Net cash provided by (used in) financing activities | -688 | -982 | |
Effect of exchange rate changes on cash and cash equivalents | 12 | -24 | |
Increase (decrease) in cash and cash equivalents | 153 | 19 | |
Cash and cash equivalents at beginning of period | 273 | [1] | 281 |
Cash and cash equivalents at end of period | $426 | $300 | |
[1] | Condensed from audited financial statements. |
Accounting_Policies
Accounting Policies | 9 Months Ended |
Sep. 27, 2014 | |
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 2013 Annual Report on Form 10-K. | |
The condensed balance sheet data at December 28, 2013 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 27, 2014 are not necessarily indicative of the results to be expected for other interim periods or the full year. | |
Accounts payable | |
Beginning in 2014, the Company has an agreement with a third party to provide an accounts payable tracking system which facilitates participating suppliers' ability to monitor and, if elected, sell to designated third-party financial institutions, payment obligations of the Company. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company's goal in entering into this agreement is to capture overall supplier savings, in the form of pricing, payment terms or vendor funding, created by facilitating suppliers' ability to sell receivables, while providing them with greater working capital flexibility. We have no economic interest in the sale of these suppliers' receivables and no direct financial relationship with the financial institutions concerning these services. The Company's obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers' decisions to sell amounts under this arrangement. However, the Company's right to offset balances due from suppliers against payment obligations is restricted by this agreement for those payment obligations that have been sold by suppliers. As of September 27, 2014, $188 million of the Company's outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $139 million of those payment obligations to participating financial institutions. | |
New accounting standards | |
Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. In July 2013, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance on financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is expected to eliminate diversity in practice resulting from lack of previously existing guidance. It applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. The Company adopted the revised guidance on a prospective basis at the beginning of its 2014 fiscal year, with no significant impact to the Consolidated Financial Statements. | |
Accounting standards to be adopted in future periods | |
In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption. | |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangible Assets [Abstract] | ' | |||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangibles [Text Block] | ' | |||||||||||||||||||||||
Note 2 Goodwill and other intangible assets | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill for the year-to-date period ended September 27, 2014, 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 | ||||||||||||||||
28-Dec-13 | $ | 133 | $ | 3,779 | $ | 82 | $ | 278 | $ | 452 | $ | 89 | $ | 238 | $ | 5,051 | ||||||||
Currency translation adjustment | - | - | - | -2 | -26 | -1 | -1 | -30 | ||||||||||||||||
27-Sep-14 | $ | 133 | $ | 3,779 | $ | 82 | $ | 276 | $ | 426 | $ | 88 | $ | 237 | $ | 5,021 | ||||||||
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 | ||||||||||||||||
December 28, 2013* | $ | 8 | $ | 65 | $ | - | $ | 5 | $ | 42 | $ | 6 | $ | 10 | $ | 136 | ||||||||
Currency translation adjustment | - | - | - | - | -2 | - | - | -2 | ||||||||||||||||
27-Sep-14 | $ | 8 | $ | 65 | $ | - | $ | 5 | $ | 40 | $ | 6 | $ | 10 | $ | 134 | ||||||||
Accumulated Amortization | ||||||||||||||||||||||||
December 28, 2013* | $ | 8 | $ | 11 | $ | - | $ | 4 | $ | 4 | $ | 6 | $ | 1 | $ | 34 | ||||||||
Amortization | - | 4 | - | - | 2 | - | - | 6 | ||||||||||||||||
27-Sep-14 | $ | 8 | $ | 15 | $ | - | $ | 4 | $ | 6 | $ | 6 | $ | 1 | $ | 40 | ||||||||
Intangible assets subject to amortization, net | ||||||||||||||||||||||||
28-Dec-13 | $ | - | $ | 54 | $ | - | $ | 1 | $ | 38 | $ | - | $ | 9 | $ | 102 | ||||||||
Currency translation adjustment | - | - | - | - | -2 | - | - | -2 | ||||||||||||||||
Amortization | - | -4 | - | - | -2 | - | - | -6 | ||||||||||||||||
27-Sep-14 | $ | - | $ | 50 | $ | - | $ | 1 | $ | 34 | $ | - | $ | 9 | $ | 94 | ||||||||
* Certain fully amortized intangible assets which were no longer utilized by the Company have been written off and revised in the prior period | ||||||||||||||||||||||||
presentation. The impact to reporting segments are as follows (millions): U.S. Morning Foods - $20; U.S. Snacks - $5; Europe - $2; and Latin America - $1. | ||||||||||||||||||||||||
For intangible assets in the preceding table, amortization was $6 million for both the year-to-date periods ended September 27, 2014 and September 28, 2013. The currently estimated aggregate annual amortization expense for full-year 2014 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 | ||||||||||||||||
28-Dec-13 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 482 | $ | - | $ | - | $ | 2,265 | ||||||||
Currency translation adjustment | - | - | - | - | -32 | - | - | -32 | ||||||||||||||||
27-Sep-14 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 450 | $ | - | $ | - | $ | 2,233 | ||||||||
Exit_or_Disposal_Activities
Exit or Disposal Activities | 9 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Exit or Disposal Activities [Abstract] | ' | |||||||||||
Exit or Disposal Activities [Text Block] | ' | |||||||||||
Note 3 Restructuring and cost reduction activities | ||||||||||||
The Company views its continued spending on restructuring and cost reduction activities as part of its ongoing operating principles to provide greater visibility in achieving its long-term profit growth targets. Initiatives undertaken are currently 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 begins to deliver cash savings and/or reduced depreciation. | ||||||||||||
The Company has initiated a number of restructuring and cost reduction activities. The most recent and largest program that is currently active is Project K, a four-year efficiency and effectiveness program announced in November 2013. The program is expected to generate a significant amount of savings 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. | ||||||||||||
During the quarter ended September 27, 2014, the Company recorded total charges of $92 million across all restructuring and cost reduction activities. The charges were comprised of $64 million being recorded in cost of goods sold (COGS) and $28 million recorded in selling, general and administrative (SGA) expense. During the year-to-date period ended September 27, 2014, the Company recorded total charges of $224 million across all restructuring and cost reduction activities. The charges were comprised of $120 million being recorded in COGS and $104 million recorded in SGA expense. | ||||||||||||
During the quarter ended September 28, 2013 the Company recorded total charges of $29 million across all restructuring and cost reduction activities. The charges were comprised of $12 million being recorded in COGS and $17 million recorded in SGA expense. During the year-to-date period ended September 28, 2013 the Company recorded total charges of $49 million across all restructuring and cost reduction activities. The charges were comprised of $23 million being recorded in COGS and $26 million recorded in SGA expense. | ||||||||||||
The tables below provide the details for charges across all restructuring and cost reduction activities incurred during the quarters and year-to-date periods ended September 27, 2014 and September 28, 2013 and program costs to date for programs currently active as of September 27, 2014. | ||||||||||||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | |||||||
Employee related costs | $ | 22 | $ | 12 | $ | 74 | $ | 17 | $ | 183 | ||
Asset related costs | 6 | - | 16 | 5 | 25 | |||||||
Asset Impairment | 21 | - | 21 | - | 87 | |||||||
Other costs | 43 | 17 | 113 | 27 | 163 | |||||||
Total | $ | 92 | $ | 29 | $ | 224 | $ | 49 | $ | 458 | ||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | |||||||
U.S. Morning Foods | $ | 15 | $ | 7 | $ | 41 | $ | 12 | $ | 151 | ||
U.S. Snacks | 32 | 4 | 42 | 10 | 69 | |||||||
U.S. Specialty | 1 | 1 | 2 | 3 | 7 | |||||||
North America Other | 2 | - | 11 | 1 | 23 | |||||||
Europe | 23 | 6 | 63 | 6 | 82 | |||||||
Latin America | 1 | 3 | 6 | 3 | 13 | |||||||
Asia Pacific | 11 | 1 | 22 | 7 | 46 | |||||||
Corporate | 7 | 7 | 37 | 7 | 67 | |||||||
Total | $ | 92 | $ | 29 | $ | 224 | $ | 49 | $ | 458 | ||
For the quarter and year-to-date periods ended September 27, 2014, and September 28, 2013, employee related costs consist primarily of severance benefits, asset related costs consist primarily of accelerated depreciation, and other costs consist primarily of third-party incremental costs related to the development and implementation of global business capabilities. | ||||||||||||
The Company currently anticipates that Project K will result in total pre-tax charges, once all phases are approved and implemented, of $1.2 to $1.4 billion, with after-tax cash costs, including incremental capital expenditures, 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, accelerated depreciation 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. Costs incurred to date related to Project K through September 27, 2014 totaled $419 million. | ||||||||||||
The Company currently expects that total pre-tax charges will impact reportable segments as follows: U.S. Morning Foods (approximately 17%), U.S. Snacks (approximately 10%), U.S. Specialty (approximately 1%), North America Other (approximately 3%), Europe (approximately 12%), Latin America (approximately 3%), Asia-Pacific (approximately 6%), and Corporate (approximately 48%). 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. | ||||||||||||
At September 27, 2014 reserves for all restructuring and cost reduction activities are reflected in the table below. A substantial portion of these reserves will be paid out in 2014 and 2015 related to severance payments and other costs. | ||||||||||||
Employee Related | Asset | Asset Related | Other | |||||||||
(millions) | Costs | Impairment | Costs | Costs | Total | |||||||
Liability as of December 28, 2013 | $ | 66 | $ | - | $ | - | $ | 12 | $ | 78 | ||
2014 restructuring charges | 74 | 21 | 16 | 113 | 224 | |||||||
Cash payments | -40 | - | -7 | -116 | -163 | |||||||
Non-cash charges and other | 12 | -21 | -9 | - | -18 | |||||||
Liability as of September 27, 2014 | $ | 112 | $ | - | $ | - | $ | 9 | $ | 121 | ||
Equity
Equity | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
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 tables. There were zero and 5 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 27, 2014, respectively. There were 6 million and 5 million anti-dilutive potential common shares excluded from the reconciliation for the quarter and year-to-date periods ended September 28, 2013, respectively. | |||||||||||||
Quarters ended September 27, 2014 and September 28, 2013: | |||||||||||||
Net income | Average | ||||||||||||
attributable to | shares | Earnings | |||||||||||
(millions, except per share data) | Kellogg Company | outstanding | per share | ||||||||||
2014 | |||||||||||||
Basic | $ | 224 | 358 | $ | 0.63 | ||||||||
Dilutive potential common shares | 2 | -0.01 | |||||||||||
Diluted | $ | 224 | 360 | $ | 0.62 | ||||||||
2013 | |||||||||||||
Basic | $ | 326 | 362 | $ | 0.9 | ||||||||
Dilutive potential common shares | 2 | ― | |||||||||||
Diluted | $ | 326 | 364 | $ | 0.9 | ||||||||
Year-to-date periods ended September 27, 2014 and September 28, 2013: | |||||||||||||
Net income | Average | ||||||||||||
attributable to | shares | Earnings | |||||||||||
(millions, except per share data) | Kellogg Company | outstanding | per share | ||||||||||
2014 | |||||||||||||
Basic | $ | 925 | 359 | $ | 2.58 | ||||||||
Dilutive potential common shares | 2 | -0.02 | |||||||||||
Diluted | $ | 925 | 361 | $ | 2.56 | ||||||||
2013 | |||||||||||||
Basic | $ | 989 | 363 | $ | 2.72 | ||||||||
Dilutive potential common shares | 3 | -0.02 | |||||||||||
Diluted | $ | 989 | 366 | $ | 2.7 | ||||||||
In February 2014, the Company's board of directors approved a share repurchase program authorizing the repurchase of up to $1.5 billion of common stock through December 2015. This authorization supersedes the April 2013 authorization and is intended to allow the Company to repurchase shares for general corporate purposes and to offset issuances for employee benefit programs. | |||||||||||||
During the year-to-date period ended September 27, 2014, the Company repurchased approximately 11 million shares of common stock for a total of $690 million. 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. | |||||||||||||
Comprehensive income | |||||||||||||
Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges and adjustments for net experience losses and prior service cost related to employee benefit plans. | |||||||||||||
Prior service credits arising during the period resulted from a change in post-retirement benefits provided to certain employees. | |||||||||||||
Quarter ended September 27, 2014 | Year-to-date period ended September 27, 2014 | ||||||||||||
Pre-tax | Tax (expense) | After-tax | Pre-tax | Tax (expense) | After-tax | ||||||||
(millions) | amount | benefit | amount | amount | benefit | amount | |||||||
Net income | $ | 225 | $ | 926 | |||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | $ | -87 | $ | -17 | -104 | $ | -54 | $ | -17 | -71 | |||
Cash flow hedges: | |||||||||||||
Unrealized gain (loss) on cash flow hedges | -2 | 4 | 2 | -26 | 11 | -15 | |||||||
Reclassification to net income | - | - | - | -11 | 3 | -8 | |||||||
Postretirement and postemployment benefits: | |||||||||||||
Amounts arising during the period: | |||||||||||||
Prior service credit (cost) | 19 | -7 | 12 | 10 | -4 | 6 | |||||||
Reclassification to net income: | |||||||||||||
Net experience loss | 1 | - | 1 | 3 | - | 3 | |||||||
Prior service cost | 2 | -1 | 1 | 8 | -3 | 5 | |||||||
Other comprehensive income (loss) | $ | -67 | $ | -21 | $ | -88 | $ | -70 | $ | -10 | $ | -80 | |
Comprehensive income | $ | 137 | $ | 846 | |||||||||
Quarter ended September 28, 2013 | Year-to-date period ended September 28, 2013 | ||||||||||||
Pre-tax | Tax (expense) | After-tax | Pre-tax | Tax (expense) | After-tax | ||||||||
(Results are unaudited) | amount | benefit | amount | amount | 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 | 0 | 5 | |||||||
Reclassification to net income | -2 | - | -2 | -4 | - | -4 | |||||||
Postretirement and postemployment benefits: | |||||||||||||
Amounts arising during the period: | - | ||||||||||||
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 27, 2014 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 | ||||||||||||
27-Sep-14 | 27-Sep-14 | ||||||||||||
(Gain) loss on cash flow hedges: | |||||||||||||
Foreign currency exchange contracts | $ | - | $ | -2 | COGS | ||||||||
Foreign currency exchange contracts | -2 | -5 | SGA | ||||||||||
Interest rate contracts | - | -9 | Interest expense | ||||||||||
Commodity contracts | 2 | 5 | COGS | ||||||||||
$ | - | $ | -11 | Total before tax | |||||||||
- | 3 | Tax (expense) benefit | |||||||||||
$ | - | $ | -8 | Net of tax | |||||||||
Amortization of postretirement and postemployment benefits: | |||||||||||||
Net experience loss | $ | 1 | $ | 3 | See Note 7 for further details | ||||||||
Prior service cost | 2 | 8 | See Note 7 for further details | ||||||||||
$ | 3 | $ | 11 | Total before tax | |||||||||
-1 | -3 | Tax (expense) benefit | |||||||||||
$ | 2 | $ | 8 | Net of tax | |||||||||
Total reclassifications | $ | 2 | $ | - | Net of tax | ||||||||
Reclassifications out of 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 | ||||||||||||
(Gain) loss 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 27, 2014 and December 28, 2013 consisted of the following: | |||||||||||||
September 27, | December 28, | ||||||||||||
(millions) | 2014 | 2013 | |||||||||||
Foreign currency translation adjustments | $ | -927 | $ | -856 | |||||||||
Cash flow hedges — unrealized net gain (loss) | -22 | 1 | |||||||||||
Postretirement and postemployment benefits: | |||||||||||||
Net experience loss | -12 | -15 | |||||||||||
Prior service cost | -55 | -66 | |||||||||||
Total accumulated other comprehensive income (loss) | $ | -1,016 | $ | -936 | |||||||||
Debt
Debt | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Debt [Abstract] | ' | ||||||||||||
Debt [Text Block] | ' | ||||||||||||
Note 5 Debt | |||||||||||||
The following table presents the components of notes payable at September 27, 2014 and December 28, 2013: | |||||||||||||
(millions) | 27-Sep-14 | 28-Dec-13 | |||||||||||
Principal amount | Effective interest rate | Principal amount | Effective interest rate | ||||||||||
U.S. commercial paper | $ | 644 | 0.19 | % | $ | 249 | 0.22 | % | |||||
Europe commercial paper | 313 | 0.18 | 437 | 0.23 | |||||||||
Bank borrowings | 122 | 53 | |||||||||||
Total | $ | 1,079 | $ | 739 | |||||||||
In the third quarter of 2014, the Company terminated interest rate swaps with notional amounts totaling $500 million, which were designated as fair value hedges of its 1.875% fixed rate U.S. Dollar Notes due 2016. The interest rate swaps effectively converted the interest rate on the Notes from fixed to variable and the unrealized loss upon termination of $2 million will be amortized to interest expense over the remaining term of the Notes. | |||||||||||||
In May 2014, the Company issued €500 million (approximately $636 million USD at September 27, 2014, which reflects the discount and translation adjustments) of seven-year 1.75% Euro Notes due 2021, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company's commercial paper borrowings. 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. The Notes were designated as a net investment hedge of the Company's investment in its Europe subsidiary when issued. | |||||||||||||
In May 2014, the Company issued Cdn. $300 million (approximately $271 million USD at September 27, 2014, which reflects the discount and translation adjustments) of three-year 2.05% Canadian Dollar Notes due 2017, using the proceeds from these Notes, together with cash on hand, to repay the Company's Cdn. $300 million, 2.10% Notes due May 22, 2014 at maturity. 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 February 2014, the Company entered into an unsecured Five-Year Credit Agreement to replace its existing unsecured Four-Year Credit Agreement, which would have expired in March 2015. The Five-Year Credit Agreement allows the Company to borrow, on a revolving credit basis, up to $2.0 billion, which includes the ability to obtain letters of credit in an aggregate stated amount not to exceed $75 million and swingline loans in aggregate principal amounts up to $200 million in U.S. dollars and $400 million in Euros. The agreement contains customary covenants and warranties, including specified restrictions on indebtedness, liens and a specified interest coverage ratio. If an event of default occurs, then, to the extent permitted, the administrative agent may terminate the commitments under the credit facility, accelerate any outstanding loans under the agreement, and demand the deposit of cash collateral equal to the lender's letter of credit exposure plus interest. | |||||||||||||
In March 2014, the Company redeemed $150 million of its 4.0% U.S. Dollar Notes due 2020, $342 million of its 3.125% U.S. Dollar Debentures due 2022 and $189 million of its 2.75% U.S. Dollar Notes due 2023. In connection with the debt redemption, the Company incurred $1 million of interest expense, offset by $8 million of accelerated gains on interest rate hedges previously recorded in accumulated other comprehensive income, and incurred $5 million of expense, recorded in Other Income, Expense (net), related to acceleration of fees on the redeemed debt and fees related to the tender offer. | |||||||||||||
The Company has entered into interest rate swaps with notional amounts totaling $2.4 billion, which effectively converts a portion of the associated U.S. Dollar Notes from fixed rate to floating rate obligations. These derivative instruments are designated as fair value hedges. The effective interest rates on debt obligations resulting from the Company's interest rate swaps as of September 27, 2014 were as follows: (a) seven-year 4.45% U.S. Dollar Notes due 2016 – 3.42%; (b) five-year 1.875% U.S. Dollar Notes due 2016 – 1.58%; (c) five-year 1.75% U.S. Dollar Notes due 2017 - 1.32%; (d) seven-year 3.25% U.S. Dollar Notes due 2018 – 1.84%; (e) ten-year 4.15% U.S. Dollar Notes due 2019 - 2.71%; (f) ten-year 4.00% U.S. Dollar Notes due 2020 - 2.09%; (g) ten-year 3.125% U.S. Dollar Notes due 2022 - 1.32%. |
Stock_Compensation
Stock Compensation | 9 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
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 2013 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) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Pre-tax compensation expense | $ | 3 | $ | 10 | $ | 31 | $ | 31 | ||||
Related income tax benefit | $ | 1 | $ | 4 | $ | 11 | $ | 12 | ||||
As of September 27, 2014, total stock-based compensation cost related to non-vested awards not yet recognized was $51 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 periods ended September 27, 2014 and September 28, 2013, 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 2013 Annual Report on Form 10-K. | ||||||||||||
Year-to-date period ended September 27, 2014: | ||||||||||||
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 | 20 | $ | 54 | |||||||||
Granted | 6 | 60 | ||||||||||
Exercised | -3 | 50 | ||||||||||
Forfeitures and expirations | -1 | 58 | ||||||||||
Outstanding, end of period | 22 | $ | 56 | 7.3 | $ | 132 | ||||||
Exercisable, end of period | 11 | $ | 52 | 5.8 | $ | 102 | ||||||
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 | ||||||
The weighted-average fair value of options granted was $6.70 per share and $5.92 per share for the year-to-date periods ended September 27, 2014 and September 28, 2013, 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 27, 2014: | 15% | 7.34 | 2.35% | 3.00% | ||||||||
Grants within the year-to-date period ended September 28, 2013: | 15% | 7.44 | 1.49% | 2.90% | ||||||||
The total intrinsic value of options exercised was $44 million and $133 million for the year-to-date periods ended September 27, 2014 and September 28, 2013, respectively. | ||||||||||||
Performance shares | ||||||||||||
In the first quarter of 2014, 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 2014 target grant currently corresponds to approximately 223,000 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 27, 2014, the maximum future value that could be awarded to employees on the vesting date for all outstanding performance share awards was as follows: | ||||||||||||
(millions) | 27-Sep-14 | |||||||||||
2012 Award | $ | 22 | ||||||||||
2013 Award | $ | 24 | ||||||||||
2014 Award | $ | 28 | ||||||||||
The 2011 performance share award, payable in stock, was settled at 60% of target in February 2014 for a total dollar | ||||||||||||
equivalent of $3 million. |
Employee_Benefits
Employee Benefits | 9 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Employee Benefits [Abstract] | ' | |||||||||||
Employee Benefits [Text Block] | ' | |||||||||||
Note 7 Employee benefits | ||||||||||||
The Company sponsors a number of U.S. and foreign pension plans, as well as 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 2013 Annual Report on Form 10-K. Components of Company plan benefit expense for the periods presented are included in the tables below. | ||||||||||||
Pension | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Service cost | $ | 27 | $ | 33 | $ | 80 | $ | 101 | ||||
Interest cost | 56 | 51 | 169 | 151 | ||||||||
Expected return on plan assets | -104 | -90 | -313 | -269 | ||||||||
Amortization of unrecognized prior service cost | 3 | 4 | 10 | 12 | ||||||||
Total pension expense (income) | $ | -18 | $ | -2 | $ | -54 | $ | -5 | ||||
Other nonpension postretirement | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Service cost | $ | 7 | $ | 8 | $ | 21 | $ | 25 | ||||
Interest cost | 13 | 13 | 40 | 37 | ||||||||
Expected return on plan assets | -24 | -21 | -73 | -65 | ||||||||
Amortization of unrecognized prior service cost | -1 | - | -2 | -2 | ||||||||
Recognized net loss | 7 | - | 7 | - | ||||||||
Curtailment gain | -12 | - | -12 | - | ||||||||
Total postretirement benefit expense (income) | $ | -10 | $ | - | $ | -19 | $ | -5 | ||||
Postemployment | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Service cost | $ | 2 | $ | 2 | $ | 6 | $ | 5 | ||||
Interest cost | 1 | 1 | 3 | 3 | ||||||||
Recognized net loss | 1 | 1 | 3 | 4 | ||||||||
Total postemployment benefit expense | $ | 4 | $ | 4 | $ | 12 | $ | 12 | ||||
During the quarter ended September 27, 2014, the Company recognized a curtailment gain of $12 million in conjunction with Project K restructuring activity. In addition, the Company remeasured the benefit obligation for the impacted other nonpension postretirement plan. The remeasurement resulted in a mark-to-market loss of $7 million primarily due to a lower discount rate. | ||||||||||||
Company contributions to employee benefit plans are summarized as follows: | ||||||||||||
Nonpension | ||||||||||||
(millions) | Pension | postretirement | Total | |||||||||
Quarter ended: | ||||||||||||
27-Sep-14 | $ | 5 | $ | 2 | $ | 7 | ||||||
28-Sep-13 | $ | 2 | $ | 4 | $ | 6 | ||||||
Year-to-date period ended: | ||||||||||||
27-Sep-14 | $ | 34 | $ | 10 | $ | 44 | ||||||
28-Sep-13 | $ | 30 | $ | 12 | $ | 42 | ||||||
Full year: | ||||||||||||
Fiscal year 2014 (projected) | $ | 43 | $ | 14 | $ | 57 | ||||||
Fiscal year 2013 (actual) | $ | 34 | $ | 14 | $ | 48 | ||||||
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. 27, 2014 | ||||
Income Taxes [Abstract] | ' | |||
Income Taxes [Text Block] | ' | |||
Note 8 Income taxes | ||||
The consolidated effective tax rate for the quarters ended September 27, 2014 and September 28, 2013 were 27.7% and 27.4%, respectively. The consolidated effective tax rate for both year-to-date periods ended September 27, 2014 and September 28, 2013 was 28.6%. | ||||
As of September 27, 2014, the Company classified $6 million of unrecognized tax benefits as a net current liability. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months is comprised of the current liability balance which is expected to be settled within one year, offset by approximately $8 million of projected additions related primarily to ongoing intercompany transfer pricing activity. 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 27, 2014; $61 million of this total represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods. | ||||
(millions) | ||||
28-Dec-13 | $ | 79 | ||
Tax positions related to current year: | ||||
Additions | 7 | |||
Reductions | - | |||
Tax positions related to prior years: | ||||
Additions | 6 | |||
Reductions | -9 | |||
Settlements | 1 | |||
27-Sep-14 | $ | 84 | ||
For the year-to-date period ended September 27, 2014 the Company recognized an increase of $3 million for tax-related interest and penalties. The Company recognized no cash settlements during the current quarter. The accrual balance was $20 million at September 27, 2014. |
Derivative_Instruments_and_Fai
Derivative Instruments and Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||
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 and non-derivative financial instruments 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 27, 2014 and December 28, 2013 were as follows: | ||||||||||||||||||||
September 27, | December 28, | |||||||||||||||||||
(millions) | 2014 | 2013 | ||||||||||||||||||
Foreign currency exchange contracts | $ | 735 | $ | 517 | ||||||||||||||||
Interest rate contracts | 2,997 | 2,400 | ||||||||||||||||||
Commodity contracts | 519 | 361 | ||||||||||||||||||
Total | $ | 4,251 | $ | 3,278 | ||||||||||||||||
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 27, 2014 and December 28, 2013, 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 27, 2014 or December 28, 2013. | ||||||||||||||||||||
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 27, 2014 and December 28, 2013: | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
27-Sep-14 | 28-Dec-13 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | 14 | $ | 14 | $ | - | $ | 7 | $ | 7 | ||||||||
Total assets | $ | - | $ | 14 | $ | 14 | $ | - | $ | 7 | $ | 7 | ||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other current liabilities | $ | - | $ | -6 | $ | -6 | $ | - | $ | -8 | $ | -8 | ||||||||
Interest rate contracts: | ||||||||||||||||||||
Other current liabilities | - | -25 | -25 | - | - | - | ||||||||||||||
Other liabilities (a) | - | -38 | -38 | - | -59 | -59 | ||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | - | -10 | -10 | - | -9 | -9 | ||||||||||||||
Other liabilities | - | -12 | -12 | - | -19 | -19 | ||||||||||||||
Total liabilities | $ | - | $ | -91 | $ | -91 | $ | - | $ | -95 | $ | -95 | ||||||||
(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 27, 2014 and December 28, 2013. | ||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
27-Sep-14 | 28-Dec-13 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | - | $ | - | $ | 3 | $ | - | $ | 3 | ||||||||
Total assets | $ | - | $ | - | $ | - | $ | 3 | $ | - | $ | 3 | ||||||||
Liabilities: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | $ | -35 | $ | - | $ | -35 | $ | -7 | $ | - | $ | -7 | ||||||||
Total liabilities | $ | -35 | $ | - | $ | -35 | $ | -7 | $ | - | $ | -7 | ||||||||
During the second quarter of 2014, the Company designated a portion of its outstanding foreign currency denominated long-term debt as a net investment hedge of a portion of the Company's investment in its subsidiaries foreign currency denominated net assets. The carrying value of this debt was $639 million as of September 27, 2014. | ||||||||||||||||||||
The Company has elected to not offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable netting agreements. However, if the Company were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in the Consolidated Balance Sheet as of September 27, 2014 and December 28, 2013 would be adjusted as detailed in the following table: | ||||||||||||||||||||
As of September 27, 2014: | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||
Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount | |||||||||||||||||
Total asset derivatives | $ | 14 | $ | -11 | $ | - | $ | 3 | ||||||||||||
Total liability derivatives | $ | -126 | $ | 11 | $ | 64 | $ | -51 | ||||||||||||
As of December 28, 2013: | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||
Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount | |||||||||||||||||
Total asset derivatives | $ | 10 | $ | -10 | $ | - | $ | 0 | ||||||||||||
Total liability derivatives | $ | -102 | $ | 10 | $ | 21 | $ | -71 | ||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the quarters ended September 27, 2014 and September 28, 2013 was as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income (a) | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 1 | $ | -1 | |||||||||||||||
Interest rate contracts | Interest expense | 4 | -3 | |||||||||||||||||
Total | $ | 5 | $ | -4 | ||||||||||||||||
(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. 27, | Sep. 28, | Sep. 27, | Sep. 28, | Sep. 27, | Sep. 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency exchange contracts | $ | 16 | $ | -4 | COGS | $ | - | $ | 2 | Other income (expense), net | $ | -1 | $ | - | ||||||
Foreign currency exchange contracts | 3 | -3 | SGA expense | 2 | 1 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | -20 | - | Interest expense | - | 1 | N/A | - | - | ||||||||||||
Commodity contracts | -1 | - | COGS | -2 | -2 | Other income (expense), net | - | - | ||||||||||||
Total | $ | -2 | $ | -7 | $ | - | $ | 2 | $ | -1 | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives and non-derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency denominated long-term debt | $ | 42 | $ | - | ||||||||||||||||
Total | $ | 42 | $ | - | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 1 | $ | 1 | |||||||||||||||
Commodity contracts | COGS | -61 | -2 | |||||||||||||||||
Total | $ | -60 | $ | -1 | ||||||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended September 27, 2014 and September 28, 2013 were as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income(a) | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 3 | $ | 2 | |||||||||||||||
Interest rate contracts | Interest expense | 13 | -2 | |||||||||||||||||
Total | $ | 16 | $ | - | ||||||||||||||||
(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. 27, | Sep. 28, | Sep. 27, | Sep. 28, | Sep. 27, | Sep. 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency exchange contracts | $ | 13 | $ | 8 | COGS | $ | 2 | $ | 7 | Other income (expense), net | $ | -3 | $ | - | ||||||
Foreign currency exchange contracts | 4 | -2 | SGA expense | 5 | 1 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | -43 | - | Interest expense | 9 | 3 | N/A | - | - | ||||||||||||
Commodity contracts | - | -1 | COGS | -5 | -7 | Other income (expense), net | - | - | ||||||||||||
Total | $ | -26 | $ | 5 | $ | 11 | $ | 4 | $ | -3 | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives and non-derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency denominated long-term debt | $ | 47 | $ | - | ||||||||||||||||
Total | $ | 47 | $ | - | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | COGS | $ | - | $ | 2 | |||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | -1 | - | |||||||||||||||||
Interest rate contracts | Interest expense | -4 | - | |||||||||||||||||
Commodity contracts | COGS | -66 | -26 | |||||||||||||||||
Total | $ | -71 | $ | -24 | ||||||||||||||||
During the next 12 months, the Company expects $2 million of net deferred losses reported in AOCI at September 27, 2014 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 Baa1 (Moody's). The fair value of all derivative instruments with credit-risk-related contingent features in a liability position on September 27, 2014 was $79 million. If the credit-risk-related contingent features were triggered as of September 27, 2014, the Company would be required to post additional collateral of $64 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 27, 2014 triggered by credit-risk-related contingent features, however, there was $15 million of collateral posted in connection with reciprocal collateralization agreements as discussed under “Counterparty credit risk concentration and collateral requirements” below. | ||||||||||||||||||||
Fair Value Measurements on a Nonrecurring Basis | ||||||||||||||||||||
As part of Project K the Company will be consolidating the usage of and disposing certain long-lived assets, including manufacturing facilities and Corporate owned assets over the term of the program. See Note 3 for more information regarding Project K. | ||||||||||||||||||||
In the quarter ended September 27, 2014, long-lived assets of $24 million, related to a manufacturing facility in our U.S. Snacks segment, were written down to an estimated fair value of $3 million due to Project K activities. The Company's calculation of the fair value of long-lived assets is based on Level 3 inputs, including market comparables, market trends and the condition of the assets. | ||||||||||||||||||||
The following table presents level 3 assets that were measured at fair value on the Consolidated Balance Sheet on a nonrecurring basis as of September 27, 2014: | ||||||||||||||||||||
(millions) | Fair Value | Total Loss | ||||||||||||||||||
Description: | ||||||||||||||||||||
Long-lived assets | $ | 3 | $ | -21 | ||||||||||||||||
Total | $ | 3 | $ | -21 | ||||||||||||||||
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 27, 2014: | ||||||||||||||||||||
(millions) | Fair Value | Carrying Value | ||||||||||||||||||
Current maturities of long-term debt | $ | 607 | $ | 607 | ||||||||||||||||
Long-term debt | 6,471 | 5,963 | ||||||||||||||||||
Total | $ | 7,078 | $ | 6,570 | ||||||||||||||||
Counterparty credit risk concentration and collateral requirements | ||||||||||||||||||||
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 27, 2014, 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. In addition, the Company is required to maintain cash margin accounts in connection with its open positions for exchange-traded commodity derivative instruments executed with the counterparty that are subject to enforceable netting agreements. As of September 27, 2014 the Company had posted collateral of $15 million in the form of cash, which was reflected as an increase in accounts receivable, net on the Consolidated Balance Sheet. As of September 27, 2014 the Company posted $49 million in margin deposits for exchange-traded commodity derivative instruments, which was reflected as an increase in accounts receivable, net. | ||||||||||||||||||||
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 27, 2014. | ||||||||||||||||||||
Contingencies
Contingencies | 9 Months Ended |
Sep. 27, 2014 | |
Loss Contingency [Abstract] | ' |
Commitments And Contingencies Disclosure [Text Block] | ' |
Note 10 Contingencies | |
In connection with the Company's on-going labor negotiations with the union representing the work-force at our Memphis, TN cereal production facility, the National Labor Relations Board filed a complaint alleging unfair labor practices under the National Labor Relations Act in March 2014. In July, 2014, a U.S. District Court judge ruled that the Memphis employees were entitled to return to work while the underlying litigation continues and employees have subsequently returned to work. This ruling is not expected to have a material effect on the production or distribution of products from the Memphis, TN facility or a material financial impact on the Company. As of September 27, 2014, the Company has not recorded a liability related to this matter due to the uncertainty of any potential outcome. The Company will continue to evaluate the likelihood of potential outcomes for this case as the litigation continues. | |
Reportable_Segments
Reportable Segments | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Reportable Segments [Abstract] | ' | ||||||||||||
Reportable Segments [Text Block] | ' | ||||||||||||
Note 11 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. The reportable segments are discussed in greater detail below. | |||||||||||||
U.S. Morning Foods includes cereal, toaster pastries, health and wellness bars, and beverages. | |||||||||||||
U.S. Snacks includes products such as cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks. | |||||||||||||
U.S. Specialty includes 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 includes 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. | |||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
(millions) | 2014 | 2013 | 2014 | 2013 | |||||||||
Net sales | |||||||||||||
U.S. Morning Foods | $ | 841 | $ | 883 | $ | 2,522 | $ | 2,657 | |||||
U.S. Snacks | 849 | 886 | 2,645 | 2,704 | |||||||||
U.S. Specialty | 270 | 281 | 918 | 932 | |||||||||
North America Other | 369 | 382 | 1,111 | 1,173 | |||||||||
Europe | 726 | 729 | 2,206 | 2,144 | |||||||||
Latin America | 320 | 302 | 918 | 914 | |||||||||
Asia Pacific | 264 | 253 | 746 | 767 | |||||||||
Consolidated | $ | 3,639 | $ | 3,716 | $ | 11,066 | $ | 11,291 | |||||
Operating profit | |||||||||||||
U.S. Morning Foods | $ | 118 | $ | 132 | $ | 389 | $ | 475 | |||||
U.S. Snacks | 67 | 105 | 292 | 341 | |||||||||
U.S. Specialty | 59 | 70 | 209 | 210 | |||||||||
North America Other | 58 | 70 | 192 | 223 | |||||||||
Europe | 61 | 74 | 181 | 220 | |||||||||
Latin America | 50 | 39 | 145 | 129 | |||||||||
Asia Pacific | 16 | 25 | 32 | 63 | |||||||||
Total Reportable Segments | 429 | 515 | 1,440 | 1,661 | |||||||||
Corporate | -64 | -11 | 6 | -84 | |||||||||
Consolidated | $ | 365 | $ | 504 | $ | 1,446 | $ | 1,577 | |||||
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 27, 2014 | |
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 2013 Annual Report on Form 10-K. | |
The condensed balance sheet data at December 28, 2013 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 27, 2014 are not necessarily indicative of the results to be expected for other interim periods or the full year. | |
Accounts Payable [Policy Text Block] | ' |
Accounts payable | |
Beginning in 2014, the Company has an agreement with a third party to provide an accounts payable tracking system which facilitates participating suppliers' ability to monitor and, if elected, sell to designated third-party financial institutions, payment obligations of the Company. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company's goal in entering into this agreement is to capture overall supplier savings, in the form of pricing, payment terms or vendor funding, created by facilitating suppliers' ability to sell receivables, while providing them with greater working capital flexibility. We have no economic interest in the sale of these suppliers' receivables and no direct financial relationship with the financial institutions concerning these services. The Company's obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers' decisions to sell amounts under this arrangement. However, the Company's right to offset balances due from suppliers against payment obligations is restricted by this agreement for those payment obligations that have been sold by suppliers. As of September 27, 2014, $188 million of the Company's outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $139 million of those payment obligations to participating financial institutions. | |
New accounting standards [Policy Text Block] | ' |
New accounting standards | |
Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. In July 2013, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance on financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is expected to eliminate diversity in practice resulting from lack of previously existing guidance. It applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. The Company adopted the revised guidance on a prospective basis at the beginning of its 2014 fiscal year, with no significant impact to the Consolidated Financial Statements. | |
Accounting standards to be adopted in future periods | |
In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) which provides guidance for accounting for revenue from contracts with customers. The core principle of this ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity would be required to apply the following five steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. Entities will have the option to apply the final standard retrospectively or use a modified retrospective method, recognizing the cumulative effect of the ASU in retained earnings at the date of initial application. An entity will not restate prior periods if it uses the modified retrospective method, but will be required to disclose the amount by which each financial statement line item is affected in the current reporting period by the application of the ASU as compared to the guidance in effect prior to the change, as well as reasons for significant changes. The Company will adopt the updated standard in the first quarter of 2017. The Company is currently evaluating the impact that implementing this ASU will have on its financial statements and disclosures, as well as whether it will use the retrospective or modified retrospective method of adoption. | |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||||||
Acquisitions, Goodwill and Other Intangible Assets [Abstract] | ' | |||||||||||||||||||||||
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 | ||||||||||||||||
28-Dec-13 | $ | 133 | $ | 3,779 | $ | 82 | $ | 278 | $ | 452 | $ | 89 | $ | 238 | $ | 5,051 | ||||||||
Currency translation adjustment | - | - | - | -2 | -26 | -1 | -1 | -30 | ||||||||||||||||
27-Sep-14 | $ | 133 | $ | 3,779 | $ | 82 | $ | 276 | $ | 426 | $ | 88 | $ | 237 | $ | 5,021 | ||||||||
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 | ||||||||||||||||
December 28, 2013* | $ | 8 | $ | 65 | $ | - | $ | 5 | $ | 42 | $ | 6 | $ | 10 | $ | 136 | ||||||||
Currency translation adjustment | - | - | - | - | -2 | - | - | -2 | ||||||||||||||||
27-Sep-14 | $ | 8 | $ | 65 | $ | - | $ | 5 | $ | 40 | $ | 6 | $ | 10 | $ | 134 | ||||||||
Accumulated Amortization | ||||||||||||||||||||||||
December 28, 2013* | $ | 8 | $ | 11 | $ | - | $ | 4 | $ | 4 | $ | 6 | $ | 1 | $ | 34 | ||||||||
Amortization | - | 4 | - | - | 2 | - | - | 6 | ||||||||||||||||
27-Sep-14 | $ | 8 | $ | 15 | $ | - | $ | 4 | $ | 6 | $ | 6 | $ | 1 | $ | 40 | ||||||||
Intangible assets subject to amortization, net | ||||||||||||||||||||||||
28-Dec-13 | $ | - | $ | 54 | $ | - | $ | 1 | $ | 38 | $ | - | $ | 9 | $ | 102 | ||||||||
Currency translation adjustment | - | - | - | - | -2 | - | - | -2 | ||||||||||||||||
Amortization | - | -4 | - | - | -2 | - | - | -6 | ||||||||||||||||
27-Sep-14 | $ | - | $ | 50 | $ | - | $ | 1 | $ | 34 | $ | - | $ | 9 | $ | 94 | ||||||||
* Certain fully amortized intangible assets which were no longer utilized by the Company have been written off and revised in the prior period | ||||||||||||||||||||||||
presentation. The impact to reporting segments are as follows (millions): U.S. Morning Foods - $20; U.S. Snacks - $5; Europe - $2; and Latin America - $1. | ||||||||||||||||||||||||
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 | ||||||||||||||||
28-Dec-13 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 482 | $ | - | $ | - | $ | 2,265 | ||||||||
Currency translation adjustment | - | - | - | - | -32 | - | - | -32 | ||||||||||||||||
27-Sep-14 | $ | 63 | $ | 1,625 | $ | - | $ | 95 | $ | 450 | $ | - | $ | - | $ | 2,233 | ||||||||
Exit_or_Disposal_Activities_Ta
Exit or Disposal Activities (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Exit or Disposal Activities [Abstract] | ' | |||||||||||
Schedule of restructuring and related costs [Table Text Block] | ' | |||||||||||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | |||||||
Employee related costs | $ | 22 | $ | 12 | $ | 74 | $ | 17 | $ | 183 | ||
Asset related costs | 6 | - | 16 | 5 | 25 | |||||||
Asset Impairment | 21 | - | 21 | - | 87 | |||||||
Other costs | 43 | 17 | 113 | 27 | 163 | |||||||
Total | $ | 92 | $ | 29 | $ | 224 | $ | 49 | $ | 458 | ||
Quarter ended | Year-to-date period ended | Program costs to date | ||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | |||||||
U.S. Morning Foods | $ | 15 | $ | 7 | $ | 41 | $ | 12 | $ | 151 | ||
U.S. Snacks | 32 | 4 | 42 | 10 | 69 | |||||||
U.S. Specialty | 1 | 1 | 2 | 3 | 7 | |||||||
North America Other | 2 | - | 11 | 1 | 23 | |||||||
Europe | 23 | 6 | 63 | 6 | 82 | |||||||
Latin America | 1 | 3 | 6 | 3 | 13 | |||||||
Asia Pacific | 11 | 1 | 22 | 7 | 46 | |||||||
Corporate | 7 | 7 | 37 | 7 | 67 | |||||||
Total | $ | 92 | $ | 29 | $ | 224 | $ | 49 | $ | 458 | ||
Schedule of restructuring reserve by type of cost [Table Text Block] | ' | |||||||||||
Employee Related | Asset | Asset Related | Other | |||||||||
(millions) | Costs | Impairment | Costs | Costs | Total | |||||||
Liability as of December 28, 2013 | $ | 66 | $ | - | $ | - | $ | 12 | $ | 78 | ||
2014 restructuring charges | 74 | 21 | 16 | 113 | 224 | |||||||
Cash payments | -40 | - | -7 | -116 | -163 | |||||||
Non-cash charges and other | 12 | -21 | -9 | - | -18 | |||||||
Liability as of September 27, 2014 | $ | 112 | $ | - | $ | - | $ | 9 | $ | 121 | ||
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Earnings per Share [Table Text Block] | ' | ||||||||||||
Quarters ended September 27, 2014 and September 28, 2013: | |||||||||||||
Net income | Average | ||||||||||||
attributable to | shares | Earnings | |||||||||||
(millions, except per share data) | Kellogg Company | outstanding | per share | ||||||||||
2014 | |||||||||||||
Basic | $ | 224 | 358 | $ | 0.63 | ||||||||
Dilutive potential common shares | 2 | -0.01 | |||||||||||
Diluted | $ | 224 | 360 | $ | 0.62 | ||||||||
2013 | |||||||||||||
Basic | $ | 326 | 362 | $ | 0.9 | ||||||||
Dilutive potential common shares | 2 | ― | |||||||||||
Diluted | $ | 326 | 364 | $ | 0.9 | ||||||||
Year-to-date periods ended September 27, 2014 and September 28, 2013: | |||||||||||||
Net income | Average | ||||||||||||
attributable to | shares | Earnings | |||||||||||
(millions, except per share data) | Kellogg Company | outstanding | per share | ||||||||||
2014 | |||||||||||||
Basic | $ | 925 | 359 | $ | 2.58 | ||||||||
Dilutive potential common shares | 2 | -0.02 | |||||||||||
Diluted | $ | 925 | 361 | $ | 2.56 | ||||||||
2013 | |||||||||||||
Basic | $ | 989 | 363 | $ | 2.72 | ||||||||
Dilutive potential common shares | 3 | -0.02 | |||||||||||
Diluted | $ | 989 | 366 | $ | 2.7 | ||||||||
Changes in Comprehensive Income [Table Text Block] | ' | ||||||||||||
Quarter ended September 27, 2014 | Year-to-date period ended September 27, 2014 | ||||||||||||
Pre-tax | Tax (expense) | After-tax | Pre-tax | Tax (expense) | After-tax | ||||||||
(millions) | amount | benefit | amount | amount | benefit | amount | |||||||
Net income | $ | 225 | $ | 926 | |||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | $ | -87 | $ | -17 | -104 | $ | -54 | $ | -17 | -71 | |||
Cash flow hedges: | |||||||||||||
Unrealized gain (loss) on cash flow hedges | -2 | 4 | 2 | -26 | 11 | -15 | |||||||
Reclassification to net income | - | - | - | -11 | 3 | -8 | |||||||
Postretirement and postemployment benefits: | |||||||||||||
Amounts arising during the period: | |||||||||||||
Prior service credit (cost) | 19 | -7 | 12 | 10 | -4 | 6 | |||||||
Reclassification to net income: | |||||||||||||
Net experience loss | 1 | - | 1 | 3 | - | 3 | |||||||
Prior service cost | 2 | -1 | 1 | 8 | -3 | 5 | |||||||
Other comprehensive income (loss) | $ | -67 | $ | -21 | $ | -88 | $ | -70 | $ | -10 | $ | -80 | |
Comprehensive income | $ | 137 | $ | 846 | |||||||||
Quarter ended September 28, 2013 | Year-to-date period ended September 28, 2013 | ||||||||||||
Pre-tax | Tax (expense) | After-tax | Pre-tax | Tax (expense) | After-tax | ||||||||
(Results are unaudited) | amount | benefit | amount | amount | 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 | 0 | 5 | |||||||
Reclassification to net income | -2 | - | -2 | -4 | - | -4 | |||||||
Postretirement and postemployment benefits: | |||||||||||||
Amounts arising during the period: | - | ||||||||||||
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 27, 2014 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 | ||||||||||||
27-Sep-14 | 27-Sep-14 | ||||||||||||
(Gain) loss on cash flow hedges: | |||||||||||||
Foreign currency exchange contracts | $ | - | $ | -2 | COGS | ||||||||
Foreign currency exchange contracts | -2 | -5 | SGA | ||||||||||
Interest rate contracts | - | -9 | Interest expense | ||||||||||
Commodity contracts | 2 | 5 | COGS | ||||||||||
$ | - | $ | -11 | Total before tax | |||||||||
- | 3 | Tax (expense) benefit | |||||||||||
$ | - | $ | -8 | Net of tax | |||||||||
Amortization of postretirement and postemployment benefits: | |||||||||||||
Net experience loss | $ | 1 | $ | 3 | See Note 7 for further details | ||||||||
Prior service cost | 2 | 8 | See Note 7 for further details | ||||||||||
$ | 3 | $ | 11 | Total before tax | |||||||||
-1 | -3 | Tax (expense) benefit | |||||||||||
$ | 2 | $ | 8 | Net of tax | |||||||||
Total reclassifications | $ | 2 | $ | - | Net of tax | ||||||||
Reclassifications out of 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 | ||||||||||||
(Gain) loss 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 27, 2014 and December 28, 2013 consisted of the following: | |||||||||||||
September 27, | December 28, | ||||||||||||
(millions) | 2014 | 2013 | |||||||||||
Foreign currency translation adjustments | $ | -927 | $ | -856 | |||||||||
Cash flow hedges — unrealized net gain (loss) | -22 | 1 | |||||||||||
Postretirement and postemployment benefits: | |||||||||||||
Net experience loss | -12 | -15 | |||||||||||
Prior service cost | -55 | -66 | |||||||||||
Total accumulated other comprehensive income (loss) | $ | -1,016 | $ | -936 | |||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Debt [Abstract] | ' | ||||||||||||
Components of Notes Payable [Table Text Block] | ' | ||||||||||||
(millions) | 27-Sep-14 | 28-Dec-13 | |||||||||||
Principal amount | Effective interest rate | Principal amount | Effective interest rate | ||||||||||
U.S. commercial paper | $ | 644 | 0.19 | % | $ | 249 | 0.22 | % | |||||
Europe commercial paper | 313 | 0.18 | 437 | 0.23 | |||||||||
Bank borrowings | 122 | 53 | |||||||||||
Total | $ | 1,079 | $ | 739 |
Stock_Compensation_Tables
Stock Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
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) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Pre-tax compensation expense | $ | 3 | $ | 10 | $ | 31 | $ | 31 | ||||
Related income tax benefit | $ | 1 | $ | 4 | $ | 11 | $ | 12 | ||||
Summary of Share-based Compensation [Table Text Block] | ' | |||||||||||
Year-to-date period ended September 27, 2014: | ||||||||||||
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 | 20 | $ | 54 | |||||||||
Granted | 6 | 60 | ||||||||||
Exercised | -3 | 50 | ||||||||||
Forfeitures and expirations | -1 | 58 | ||||||||||
Outstanding, end of period | 22 | $ | 56 | 7.3 | $ | 132 | ||||||
Exercisable, end of period | 11 | $ | 52 | 5.8 | $ | 102 | ||||||
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 | ||||||
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 27, 2014: | 15% | 7.34 | 2.35% | 3.00% | ||||||||
Grants within the year-to-date period ended September 28, 2013: | 15% | 7.44 | 1.49% | 2.90% | ||||||||
Maximum Future Value of Performance Shares [Table Text Block] | ' | |||||||||||
(millions) | 27-Sep-14 | |||||||||||
2012 Award | $ | 22 | ||||||||||
2013 Award | $ | 24 | ||||||||||
2014 Award | $ | 28 | ||||||||||
The 2011 performance share award, payable in stock, was settled at 60% of target in February 2014 for a total dollar | ||||||||||||
equivalent of $3 million. |
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Employee Benefits [Abstract] | ' | |||||||||||
Components of Company Plan Benefit Expense [Table Text Block] | ' | |||||||||||
Pension | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Service cost | $ | 27 | $ | 33 | $ | 80 | $ | 101 | ||||
Interest cost | 56 | 51 | 169 | 151 | ||||||||
Expected return on plan assets | -104 | -90 | -313 | -269 | ||||||||
Amortization of unrecognized prior service cost | 3 | 4 | 10 | 12 | ||||||||
Total pension expense (income) | $ | -18 | $ | -2 | $ | -54 | $ | -5 | ||||
Other nonpension postretirement | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Service cost | $ | 7 | $ | 8 | $ | 21 | $ | 25 | ||||
Interest cost | 13 | 13 | 40 | 37 | ||||||||
Expected return on plan assets | -24 | -21 | -73 | -65 | ||||||||
Amortization of unrecognized prior service cost | -1 | - | -2 | -2 | ||||||||
Recognized net loss | 7 | - | 7 | - | ||||||||
Curtailment gain | -12 | - | -12 | - | ||||||||
Total postretirement benefit expense (income) | $ | -10 | $ | - | $ | -19 | $ | -5 | ||||
Postemployment | ||||||||||||
Quarter ended | Year-to-date period ended | |||||||||||
(millions) | 27-Sep-14 | 28-Sep-13 | 27-Sep-14 | 28-Sep-13 | ||||||||
Service cost | $ | 2 | $ | 2 | $ | 6 | $ | 5 | ||||
Interest cost | 1 | 1 | 3 | 3 | ||||||||
Recognized net loss | 1 | 1 | 3 | 4 | ||||||||
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: | ||||||||||||
27-Sep-14 | $ | 5 | $ | 2 | $ | 7 | ||||||
28-Sep-13 | $ | 2 | $ | 4 | $ | 6 | ||||||
Year-to-date period ended: | ||||||||||||
27-Sep-14 | $ | 34 | $ | 10 | $ | 44 | ||||||
28-Sep-13 | $ | 30 | $ | 12 | $ | 42 | ||||||
Full year: | ||||||||||||
Fiscal year 2014 (projected) | $ | 43 | $ | 14 | $ | 57 | ||||||
Fiscal year 2013 (actual) | $ | 34 | $ | 14 | $ | 48 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||
Sep. 27, 2014 | ||||
Income Taxes [Abstract] | ' | |||
Reconciliation of Total Gross Unrecognized Tax Benefits [Table Text Block] | ' | |||
(millions) | ||||
28-Dec-13 | $ | 79 | ||
Tax positions related to current year: | ||||
Additions | 7 | |||
Reductions | - | |||
Tax positions related to prior years: | ||||
Additions | 6 | |||
Reductions | -9 | |||
Settlements | 1 | |||
27-Sep-14 | $ | 84 | ||
Derivative_Instruments_and_Fai1
Derivative Instruments and Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 27, 2014 | ||||||||||||||||||||
Derivative Instruments and Fair Value Measurements [Abstract] | ' | |||||||||||||||||||
Schedule of Total Notional Amounts of the Company's Derivative Instruments [Table Text Block] | ' | |||||||||||||||||||
September 27, | December 28, | |||||||||||||||||||
(millions) | 2014 | 2013 | ||||||||||||||||||
Foreign currency exchange contracts | $ | 735 | $ | 517 | ||||||||||||||||
Interest rate contracts | 2,997 | 2,400 | ||||||||||||||||||
Commodity contracts | 519 | 361 | ||||||||||||||||||
Total | $ | 4,251 | $ | 3,278 | ||||||||||||||||
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 27, 2014 and December 28, 2013: | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
27-Sep-14 | 28-Dec-13 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | 14 | $ | 14 | $ | - | $ | 7 | $ | 7 | ||||||||
Total assets | $ | - | $ | 14 | $ | 14 | $ | - | $ | 7 | $ | 7 | ||||||||
Liabilities: | ||||||||||||||||||||
Foreign currency exchange contracts: | ||||||||||||||||||||
Other current liabilities | $ | - | $ | -6 | $ | -6 | $ | - | $ | -8 | $ | -8 | ||||||||
Interest rate contracts: | ||||||||||||||||||||
Other current liabilities | - | -25 | -25 | - | - | - | ||||||||||||||
Other liabilities (a) | - | -38 | -38 | - | -59 | -59 | ||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | - | -10 | -10 | - | -9 | -9 | ||||||||||||||
Other liabilities | - | -12 | -12 | - | -19 | -19 | ||||||||||||||
Total liabilities | $ | - | $ | -91 | $ | -91 | $ | - | $ | -95 | $ | -95 | ||||||||
(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 27, 2014 and December 28, 2013. | ||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
27-Sep-14 | 28-Dec-13 | |||||||||||||||||||
Level | Level | Total | Level | Level | Total | |||||||||||||||
(millions) | 1 | 2 | 1 | 2 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other prepaid assets | $ | - | $ | - | $ | - | $ | 3 | $ | - | $ | 3 | ||||||||
Total assets | $ | - | $ | - | $ | - | $ | 3 | $ | - | $ | 3 | ||||||||
Liabilities: | ||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||
Other current liabilities | $ | -35 | $ | - | $ | -35 | $ | -7 | $ | - | $ | -7 | ||||||||
Total liabilities | $ | -35 | $ | - | $ | -35 | $ | -7 | $ | - | $ | -7 | ||||||||
Offsetting Assets And Liabilities [Table Text Block] | ' | |||||||||||||||||||
As of September 27, 2014: | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||
Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount | |||||||||||||||||
Total asset derivatives | $ | 14 | $ | -11 | $ | - | $ | 3 | ||||||||||||
Total liability derivatives | $ | -126 | $ | 11 | $ | 64 | $ | -51 | ||||||||||||
As of December 28, 2013: | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||
Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Cash Collateral Received/ Posted | Net Amount | |||||||||||||||||
Total asset derivatives | $ | 10 | $ | -10 | $ | - | $ | 0 | ||||||||||||
Total liability derivatives | $ | -102 | $ | 10 | $ | 21 | $ | -71 | ||||||||||||
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 27, 2014 and September 28, 2013 was as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income (a) | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 1 | $ | -1 | |||||||||||||||
Interest rate contracts | Interest expense | 4 | -3 | |||||||||||||||||
Total | $ | 5 | $ | -4 | ||||||||||||||||
(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. 27, | Sep. 28, | Sep. 27, | Sep. 28, | Sep. 27, | Sep. 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency exchange contracts | $ | 16 | $ | -4 | COGS | $ | - | $ | 2 | Other income (expense), net | $ | -1 | $ | - | ||||||
Foreign currency exchange contracts | 3 | -3 | SGA expense | 2 | 1 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | -20 | - | Interest expense | - | 1 | N/A | - | - | ||||||||||||
Commodity contracts | -1 | - | COGS | -2 | -2 | Other income (expense), net | - | - | ||||||||||||
Total | $ | -2 | $ | -7 | $ | - | $ | 2 | $ | -1 | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives and non-derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency denominated long-term debt | $ | 42 | $ | - | ||||||||||||||||
Total | $ | 42 | $ | - | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 1 | $ | 1 | |||||||||||||||
Commodity contracts | COGS | -61 | -2 | |||||||||||||||||
Total | $ | -60 | $ | -1 | ||||||||||||||||
The effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the year-to-date periods ended September 27, 2014 and September 28, 2013 were as follows: | ||||||||||||||||||||
Derivatives in fair value hedging relationships | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income(a) | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | $ | 3 | $ | 2 | |||||||||||||||
Interest rate contracts | Interest expense | 13 | -2 | |||||||||||||||||
Total | $ | 16 | $ | - | ||||||||||||||||
(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. 27, | Sep. 28, | Sep. 27, | Sep. 28, | Sep. 27, | Sep. 28, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency exchange contracts | $ | 13 | $ | 8 | COGS | $ | 2 | $ | 7 | Other income (expense), net | $ | -3 | $ | - | ||||||
Foreign currency exchange contracts | 4 | -2 | SGA expense | 5 | 1 | Other income (expense), net | - | - | ||||||||||||
Interest rate contracts | -43 | - | Interest expense | 9 | 3 | N/A | - | - | ||||||||||||
Commodity contracts | - | -1 | COGS | -5 | -7 | Other income (expense), net | - | - | ||||||||||||
Total | $ | -26 | $ | 5 | $ | 11 | $ | 4 | $ | -3 | $ | - | ||||||||
(a) Includes the ineffective portion and amount excluded from effectiveness testing. | ||||||||||||||||||||
Derivatives and non-derivatives in net investment hedging relationships | ||||||||||||||||||||
Gain (loss) | ||||||||||||||||||||
recognized in | ||||||||||||||||||||
(millions) | AOCI | |||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency denominated long-term debt | $ | 47 | $ | - | ||||||||||||||||
Total | $ | 47 | $ | - | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Location of gain | Gain (loss) | |||||||||||||||||||
(loss) recognized | recognized in | |||||||||||||||||||
(millions) | in income | income | ||||||||||||||||||
Sep. 27, | Sep. 28, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Foreign currency exchange contracts | COGS | $ | - | $ | 2 | |||||||||||||||
Foreign currency exchange contracts | Other income (expense), net | -1 | - | |||||||||||||||||
Interest rate contracts | Interest expense | -4 | - | |||||||||||||||||
Commodity contracts | COGS | -66 | -26 | |||||||||||||||||
Total | $ | -71 | $ | -24 | ||||||||||||||||
Fair Value Assets Measured on Nonrecurring Basis [Table Text Block] | ' | |||||||||||||||||||
The following table presents level 3 assets that were measured at fair value on the Consolidated Balance Sheet on a nonrecurring basis as of September 27, 2014: | ||||||||||||||||||||
(millions) | Fair Value | Total Loss | ||||||||||||||||||
Description: | ||||||||||||||||||||
Long-lived assets | $ | 3 | $ | -21 | ||||||||||||||||
Total | $ | 3 | $ | -21 | ||||||||||||||||
Schedule of Fair Value of Long-term Debt [Table Text Block] | ' | |||||||||||||||||||
(millions) | Fair Value | Carrying Value | ||||||||||||||||||
Current maturities of long-term debt | $ | 607 | $ | 607 | ||||||||||||||||
Long-term debt | 6,471 | 5,963 | ||||||||||||||||||
Total | $ | 7,078 | $ | 6,570 |
Reportable_Segments_Tables
Reportable Segments (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Reportable Segments [Abstract] | ' | ||||||||||||
Schedule of Selected Operating Segment Information [Table Text Block] | ' | ||||||||||||
Quarter ended | Year-to-date period ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
(millions) | 2014 | 2013 | 2014 | 2013 | |||||||||
Net sales | |||||||||||||
U.S. Morning Foods | $ | 841 | $ | 883 | $ | 2,522 | $ | 2,657 | |||||
U.S. Snacks | 849 | 886 | 2,645 | 2,704 | |||||||||
U.S. Specialty | 270 | 281 | 918 | 932 | |||||||||
North America Other | 369 | 382 | 1,111 | 1,173 | |||||||||
Europe | 726 | 729 | 2,206 | 2,144 | |||||||||
Latin America | 320 | 302 | 918 | 914 | |||||||||
Asia Pacific | 264 | 253 | 746 | 767 | |||||||||
Consolidated | $ | 3,639 | $ | 3,716 | $ | 11,066 | $ | 11,291 | |||||
Operating profit | |||||||||||||
U.S. Morning Foods | $ | 118 | $ | 132 | $ | 389 | $ | 475 | |||||
U.S. Snacks | 67 | 105 | 292 | 341 | |||||||||
U.S. Specialty | 59 | 70 | 209 | 210 | |||||||||
North America Other | 58 | 70 | 192 | 223 | |||||||||
Europe | 61 | 74 | 181 | 220 | |||||||||
Latin America | 50 | 39 | 145 | 129 | |||||||||
Asia Pacific | 16 | 25 | 32 | 63 | |||||||||
Total Reportable Segments | 429 | 515 | 1,440 | 1,661 | |||||||||
Corporate | -64 | -11 | 6 | -84 | |||||||||
Consolidated | $ | 365 | $ | 504 | $ | 1,446 | $ | 1,577 | |||||
Accounting_Policies_Narrative_
Accounting Policies (Narrative) (Details) (USD $) | Sep. 27, 2014 |
In Millions, unless otherwise specified | |
Accounting Policies [Abstract] | ' |
Payables Placed On Tracking System | $188 |
Payables Financed By Participating Suppliers | $139 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ' |
Finite Lived Intangible Assets Amortization Expense Next Twelve Months | $9 |
Finite Lived Intangible Assets Amortization Expense Year Two | 9 |
Finite Lived Intangible Assets Amortization Expense Year Three | 9 |
Finite Lived Intangible Assets Amortization Expense Year Four | 9 |
Finite Lived Intangible Assets Amortization Expense Year Five | 9 |
Amortization expense | $6 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Carrying Amount of Goodwill) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | $5,051 | [1] |
Currency translation adjustment | -30 | |
Ending Balance | 5,021 | |
U.S. Morning Foods [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 133 | |
Currency translation adjustment | 0 | |
Ending Balance | 133 | |
U.S. Snacks [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 3,779 | |
Currency translation adjustment | 0 | |
Ending Balance | 3,779 | |
U.S. Specialty [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 82 | |
Currency translation adjustment | 0 | |
Ending Balance | 82 | |
North America Other [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 278 | |
Currency translation adjustment | -2 | |
Ending Balance | 276 | |
Europe [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 452 | |
Currency translation adjustment | -26 | |
Ending Balance | 426 | |
Latin America [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 89 | |
Currency translation adjustment | -1 | |
Ending Balance | 88 | |
Asia Pacific [Member] | ' | |
Change in carrying amount of goodwill | ' | |
Beginning Balance | 238 | |
Currency translation adjustment | -1 | |
Ending Balance | $237 | |
[1] | Condensed from audited financial statements. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Intangible Assets Subject to Amortization) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | |
Finite Lived Intangible Assets [Roll Forward] | ' | |
Gross carrying amount, beginning balance | $136 | |
Currency translation adjustment | -2 | |
Gross carrying amount, ending balance | 134 | |
Accumulated amortization, beginning balance | 34 | [1] |
Amortization expense | 6 | |
Accumulated amortization, ending balance | 40 | |
Intangible assets subject to amortization net, beginning balance | 102 | |
Currency translation adjustment | -2 | |
Amortization expense | -6 | |
Intangible assets subject to amortization net, ending balance | 94 | |
U.S. Morning Foods [Member] | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | |
Gross carrying amount, beginning balance | 8 | |
Currency translation adjustment | 0 | |
Gross carrying amount, ending balance | 8 | |
Accumulated amortization, beginning balance | 8 | |
Amortization expense | 0 | |
Accumulated amortization, ending balance | 8 | |
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 | 65 | |
Currency translation adjustment | 0 | |
Gross carrying amount, ending balance | 65 | |
Accumulated amortization, beginning balance | 11 | |
Amortization expense | 4 | |
Accumulated amortization, ending balance | 15 | |
Intangible assets subject to amortization net, beginning balance | 54 | |
Currency translation adjustment | 0 | |
Amortization expense | -4 | |
Intangible assets subject to amortization net, ending balance | 50 | |
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 | 4 | |
Amortization expense | 0 | |
Accumulated amortization, ending balance | 4 | |
Intangible assets subject to amortization net, beginning balance | 1 | |
Currency translation adjustment | 0 | |
Amortization expense | 0 | |
Intangible assets subject to amortization net, ending balance | 1 | |
Europe [Member] | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | |
Gross carrying amount, beginning balance | 42 | |
Currency translation adjustment | -2 | |
Gross carrying amount, ending balance | 40 | |
Accumulated amortization, beginning balance | 4 | |
Amortization expense | 2 | |
Accumulated amortization, ending balance | 6 | |
Intangible assets subject to amortization net, beginning balance | 38 | |
Currency translation adjustment | -2 | |
Amortization expense | -2 | |
Intangible assets subject to amortization net, ending balance | 34 | |
Latin America [Member] | ' | |
Finite Lived Intangible Assets [Roll Forward] | ' | |
Gross carrying amount, beginning balance | 6 | |
Currency translation adjustment | 0 | |
Gross carrying amount, ending balance | 6 | |
Accumulated amortization, beginning balance | 6 | |
Amortization expense | 0 | |
Accumulated amortization, ending balance | 6 | |
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 | 1 | |
Amortization expense | 0 | |
Accumulated amortization, ending balance | 1 | |
Intangible assets subject to amortization net, beginning balance | 9 | |
Currency translation adjustment | 0 | |
Amortization expense | 0 | |
Intangible assets subject to amortization net, ending balance | $9 | |
[1] | Condensed from audited financial statements. |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Intangible Assets not Subject to Amortization) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Indefinite-lived Intangible Assets by Major Class [Line Items] | ' |
Beginning Balance | $2,265 |
Currency translation adjustment | -32 |
Ending Balance | 2,233 |
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 | 482 |
Currency translation adjustment | -32 |
Ending Balance | 450 |
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_Re
Exit or Disposal Activities (Restructuring and Cost Reduction Charges Incurred) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 28 Months Ended | 15 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 28 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Project K [Member] | U.S. Morning Foods [Member] | U.S. Morning Foods [Member] | U.S. Morning Foods [Member] | U.S. Morning Foods [Member] | U.S. Morning Foods [Member] | U.S. Snacks [Member] | U.S. Snacks [Member] | U.S. Snacks [Member] | U.S. Snacks [Member] | U.S. Snacks [Member] | U.S. Specialty [Member] | U.S. Specialty [Member] | U.S. Specialty [Member] | U.S. Specialty [Member] | U.S. Specialty [Member] | North America Other [Member] | North America Other [Member] | North America Other [Member] | North America Other [Member] | North America Other [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Latin America [Member] | Latin America [Member] | Latin America [Member] | Latin America [Member] | Latin America [Member] | Asia Pacific [Member] | Asia Pacific [Member] | Asia Pacific [Member] | Asia Pacific [Member] | Asia Pacific [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Corporate [Member] | Employee related costs [Member] | Employee related costs [Member] | Employee related costs [Member] | Employee related costs [Member] | Employee related costs [Member] | Asset related costs [Member] | Asset related costs [Member] | Asset related costs [Member] | Asset related costs [Member] | Asset related costs [Member] | Asset Impairment [Member] | Asset Impairment [Member] | Asset Impairment [Member] | Asset Impairment [Member] | Asset Impairment [Member] | Other costs [Member] | Other costs [Member] | Other costs [Member] | Other costs [Member] | Other costs [Member] | Selling General and Administrative Expenses [Member] | Selling General and Administrative Expenses [Member] | Selling General and Administrative Expenses [Member] | Selling General and Administrative Expenses [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Cost of Sales [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | $92 | $29 | $224 | $49 | ' | ' | $15 | $7 | $41 | $12 | ' | $32 | $4 | $42 | $10 | ' | $1 | $1 | $2 | $3 | ' | $2 | $0 | $11 | $1 | ' | $23 | $6 | $63 | $6 | ' | $1 | $3 | $6 | $3 | ' | $11 | $1 | $22 | $7 | ' | $7 | $7 | $37 | $7 | ' | $22 | $12 | $74 | $17 | ' | $6 | $0 | $16 | $5 | ' | $21 | $0 | $21 | $0 | ' | $43 | $17 | $113 | $27 | ' | $28 | $17 | $104 | $26 | $64 | $12 | $120 | $23 |
Restructuring and related costs incurred to date | ' | ' | ' | ' | $458 | $419 | ' | ' | ' | ' | $151 | ' | ' | ' | ' | $69 | ' | ' | ' | ' | $7 | ' | ' | ' | ' | $23 | ' | ' | ' | ' | $82 | ' | ' | ' | ' | $13 | ' | ' | ' | ' | $46 | ' | ' | ' | ' | $67 | ' | ' | ' | ' | $183 | ' | ' | ' | ' | $25 | ' | ' | ' | ' | $87 | ' | ' | ' | ' | $163 | ' | ' | ' | ' | ' | ' | ' | ' |
Exit_or_Disposal_Activities_Pr
Exit or Disposal Activities (Project K Program Charges) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | $92 | $29 | $224 | $49 |
Maximum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Estimated cash costs for program | ' | ' | 1,100 | ' |
Restructuring and related costs, expected cost | ' | ' | 1,400 | ' |
Minimum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Estimated cash costs for program | ' | ' | 900 | ' |
Restructuring and related costs, expected cost | ' | ' | 1,200 | ' |
U.S. Morning Foods [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 15 | 7 | 41 | 12 |
Restructuring and related cost, expected cost allocation | ' | ' | 17.00% | ' |
U.S. Snacks [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 32 | 4 | 42 | 10 |
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 | 2 | 3 |
Restructuring and related cost, expected cost allocation | ' | ' | 1.00% | ' |
North America Other [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 2 | 0 | 11 | 1 |
Restructuring and related cost, expected cost allocation | ' | ' | 3.00% | ' |
Europe [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 23 | 6 | 63 | 6 |
Restructuring and related cost, expected cost allocation | ' | ' | 12.00% | ' |
Latin America [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 1 | 3 | 6 | 3 |
Restructuring and related cost, expected cost allocation | ' | ' | 3.00% | ' |
Asia Pacific [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 11 | 1 | 22 | 7 |
Restructuring and related cost, expected cost allocation | ' | ' | 6.00% | ' |
Corporate [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 7 | 7 | 37 | 7 |
Restructuring and related cost, expected cost allocation | ' | ' | 48.00% | ' |
Employee related costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 22 | 12 | 74 | 17 |
Employee related costs [Member] | Maximum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related costs, expected cost | ' | ' | 475 | ' |
Employee related costs [Member] | Minimum [Member] | Project K [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 | 6 | 0 | 16 | 5 |
Asset related costs [Member] | Maximum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related costs, expected cost | ' | ' | 500 | ' |
Asset related costs [Member] | Minimum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related costs, expected cost | ' | ' | 450 | ' |
Asset Impairment [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 21 | 0 | 21 | 0 |
Other costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related cost, incurred cost | 43 | 17 | 113 | 27 |
Other costs [Member] | Maximum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related costs, expected cost | ' | ' | 425 | ' |
Other costs [Member] | Minimum [Member] | Project K [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and related costs, expected cost | ' | ' | $325 | ' |
Exit_of_Disposal_Activities_Re
Exit of Disposal Activities (Restructuring and Cost Reduction Reserves Rollforward) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Restructuring Reserve Roll Forward | ' |
Restructuring reserve, beginning balance | $78 |
Restructuring costs incurred | 224 |
Restructuring, cash payments | -163 |
Non-cash Charges and Other | -18 |
Restructuring reserve, ending balance | 121 |
Employee related costs [Member] | ' |
Restructuring Reserve Roll Forward | ' |
Restructuring reserve, beginning balance | 66 |
Restructuring costs incurred | 74 |
Restructuring, cash payments | -40 |
Non-cash Charges and Other | 12 |
Restructuring reserve, ending balance | 112 |
Asset related costs [Member] | ' |
Restructuring Reserve Roll Forward | ' |
Restructuring reserve, beginning balance | 0 |
Restructuring costs incurred | 16 |
Restructuring, cash payments | -7 |
Non-cash Charges and Other | -9 |
Restructuring reserve, ending balance | 0 |
Asset Impairment [Member] | ' |
Restructuring Reserve Roll Forward | ' |
Restructuring reserve, beginning balance | 0 |
Restructuring costs incurred | 21 |
Restructuring, cash payments | 0 |
Non-cash Charges and Other | -21 |
Restructuring reserve, ending balance | 0 |
Other costs [Member] | ' |
Restructuring Reserve Roll Forward | ' |
Restructuring reserve, beginning balance | 12 |
Restructuring costs incurred | 113 |
Restructuring, cash payments | -116 |
Non-cash Charges and Other | 0 |
Restructuring reserve, ending balance | $9 |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Share data in Millions, unless otherwise specified | Feb. 22, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 |
Equity [Abstract] | ' | ' | ' | ' | ' |
Anti-dilutive potential common shares excluded from reconciliation | ' | 6 | 5 | 5 | ' |
Equity Class Of Treasury Stock [Line Items] | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $1,500,000,000 | ' | ' | ' | ' |
Common stock repurchases shares | ' | ' | 11 | 9 | ' |
Common stock repurchases value | ' | ' | $690,000,000 | $544,000,000 | $544,000,000 |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Net income, basic | $224 | $326 | $925 | $989 |
Average shares outstanding, basic | 358 | 362 | 359 | 363 |
Net earnings per share, basic | $0.63 | $0.90 | $2.58 | $2.72 |
Average shares outstanding, dilutive potential common shares | 2 | 2 | 2 | 3 |
Net earnings per share, dilutive potential common shares | ($0.01) | $0 | ($0.02) | ($0.02) |
Net income, diluted | $224 | $326 | $925 | $989 |
Average shares outstanding, diluted | 360 | 364 | 361 | 366 |
Net earnings per share, diluted | $0.62 | $0.90 | $2.56 | $2.70 |
Equity_Comprehensive_Income_De
Equity - Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 |
Consolidated Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Net income | $225 | $326 | $926 | $989 | $1,808 |
Other comprehensive income, pre-tax: | ' | ' | ' | ' | ' |
Foreign currency translation adjustments, pre-tax | -87 | 63 | -54 | -28 | ' |
Cash flow hedges, pre-tax: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges, pre-tax | -2 | -7 | -26 | 5 | ' |
Reclassification to net income, pre-tax | 0 | -2 | -11 | -4 | ' |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | ' | ' | ' | ' | ' |
Prior service credit (cost), pre-tax | 19 | -1 | 10 | -1 | ' |
Postretirement and Postemployment Benefits Reclassification To Net Income Pre Tax [Abstract] | ' | ' | ' | ' | ' |
Net experience loss, pre-tax | 1 | 1 | 3 | 4 | ' |
Prior service cost, pre-tax | 2 | 4 | 8 | 10 | ' |
Other Comprehensive Income (Loss), before Tax | -67 | 58 | -70 | -14 | ' |
Other comprehensive income (loss), tax (expense) or benefit | ' | ' | ' | ' | ' |
Foreign currency translation adjustments, tax (expense) or benefit | -17 | ' | -17 | ' | ' |
Cash flow hedges, tax effect: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges, tax (expense) or benefit | 4 | 3 | 11 | 0 | ' |
Reclassification to net earnings - tax (expense) or benefit | 0 | ' | 3 | ' | ' |
Postretirement and Postemployment Benefit Amounts Arising During Period Tax [Abstract] | ' | ' | ' | ' | ' |
Prior service credit (cost), tax (expense) or benefit | -7 | ' | -4 | ' | ' |
Postretirement and Postemployment Benefits Reclassification To Net Income Tax [Abstract] | ' | ' | ' | ' | ' |
Prior service cost, tax (expense) or benefit | -1 | -1 | -3 | -3 | ' |
Other Comprehensive Income (Loss), Tax | -21 | 2 | -10 | -3 | ' |
Other comprehensive income (loss), after tax | ' | ' | ' | ' | ' |
Foreign currency translation adjustments, after-tax | -104 | 63 | -71 | -28 | ' |
Cash flow hedges, after-tax: | ' | ' | ' | ' | ' |
Unrealized gain (loss) on cash flow hedges, after-tax | 2 | -4 | -15 | 5 | ' |
Reclassification to net income, after-tax | 0 | -2 | -8 | -4 | ' |
Postretirement and Postemployment Benefit Amounts Arising During Period After Tax [Abstract] | ' | ' | ' | ' | ' |
Prior service credit (cost), after-tax | 12 | -1 | 6 | -1 | ' |
Postretirement and Postemployment Benefits Reclassification To Net Income After Tax [Abstract] | ' | ' | ' | ' | ' |
Net experience loss, after-tax | 1 | 1 | 3 | 4 | ' |
Prior service cost, after-tax | 1 | 3 | 5 | 7 | ' |
Other comprehensive income (loss) | -88 | 60 | -80 | -17 | 10 |
Comprehensive income | $137 | $386 | $846 | $972 | ' |
Equity_Reclassification_of_AOC
Equity - Reclassification of AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Reclassification to net income, pre-tax | $0 | ($2) | ($11) | ($4) |
Tax (expense) benefit | 0 | ' | -3 | ' |
Net of tax | 0 | -2 | -8 | -4 |
Postretirement and Postemployment Benefits Reclassification To Net Income Pre Tax [Abstract] | ' | ' | ' | ' |
Net experience loss, pre-tax | 1 | 1 | 3 | 4 |
Prior service cost, pre-tax | 2 | 4 | 8 | 10 |
Total before tax | 3 | 5 | 11 | 14 |
Postretirement and Postemployment Benefits Reclassification To Net Income After Tax [Abstract] | ' | ' | ' | ' |
Tax (expense) benefit | -1 | -1 | -3 | -3 |
Net of tax | 2 | 4 | 8 | 11 |
Total reclassifications for the quarter, net of tax | 2 | -2 | 0 | -7 |
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] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Reclassification to net income, pre-tax | ' | -2 | ' | -4 |
Net of tax | ' | -2 | ' | -4 |
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 | 0 | -2 | -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 | -2 | ' | -5 | ' |
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Reclassification to net income, pre-tax | 0 | -1 | -9 | -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 | $2 | $5 | $7 |
Equity_Accumulated_Other_Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Millions, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | |
Foreign currency translation adjustments | ($927) | ($856) | |
Cash flow hedges - unrealized net gain (loss) | -22 | 1 | |
Postretirement and postemployment benefits: | ' | ' | |
Net experience loss | -12 | -15 | |
Prior Service Cost | -55 | -66 | |
Total accumulated other comprehensive income (loss) | ($1,016) | ($936) | [1] |
[1] | Condensed from audited financial statements. |
Debt_Narrative_Details
Debt (Narrative) (Details) | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | 31-May-14 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | 31-May-14 | 31-May-14 |
USD ($) | USD ($) | USD ($) | Revolving Credit Facility [Member] | Line Of Credit [Member] | U.S. Swingline Loans [Member] | European Swingline Loans [Member] | Interest Rate Swap [Member] | 3.25% U.S. Dollar Notes due 2018 [Member] | 2.75% Ten Year U.S. Dollar Notes [Member] | 4% Ten Year U.S. Dollar Notes due 2020 [Member] | 1.75% Seven Year Euro Dollar Notes due 2021 [Member] | 1.75% Seven Year Euro Dollar Notes due 2021 [Member] | 4.45% Seven 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] | 2.05% Three Year Canadian Dollar Notes due 2017 | 2.10% Two Year Canadian Dollar Notes Due 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | CAD | CAD | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain gain on termination of interest rate fair value hedge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | ' | ' | ' | ' |
Notional amounts of interest rate swaps | 4,251 | ' | 3,278 | ' | ' | ' | ' | 2,400 | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | 300 | 300 |
Debt instrument, stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | 4.00% | 1.75% | ' | 4.45% | 1.88% | 4.15% | 3.13% | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.84% | ' | 2.09% | 1.32% | ' | 3.42% | 1.58% | 2.71% | 1.32% | ' | ' |
Repayment of long-term debt | 959 | 761 | ' | ' | ' | ' | ' | ' | ' | 189 | 150 | ' | ' | ' | ' | ' | 342 | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | 2,000 | 75 | 200 | 400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense Debt | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated Gains On Redeemed Debt | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accelerated Expense On Redeemed Debt | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Components_of_Notes_Payab
Debt (Components of Notes Payable) (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Millions, unless otherwise specified | |||
Short-term Debt [Line Items] | ' | ' | |
Principal amount | $1,079 | $739 | [1] |
Euro Commercial Paper [Member] | ' | ' | |
Short-term Debt [Line Items] | ' | ' | |
Principal amount | 313 | 437 | |
Effective interest rate | 0.18% | 0.23% | |
U.S. Commercial Paper [Member] | ' | ' | |
Short-term Debt [Line Items] | ' | ' | |
Principal amount | 644 | 249 | |
Effective interest rate | 0.19% | 0.22% | |
Bank Borrowings [Member] | ' | ' | |
Short-term Debt [Line Items] | ' | ' | |
Principal amount | $122 | $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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Stock Compensation [Abstract] | ' | ' | ' | ' |
Pre-tax compensation expense | $3 | $10 | $31 | $31 |
Related income tax benefit | 1 | 4 | 11 | 12 |
Non-vested stock-based compensation awards not yet recognized | $51 | ' | $51 | ' |
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. 27, 2014 | Sep. 28, 2013 |
Stock Compensation [Abstract] | ' | ' |
Outstanding, beginning of period - Shares | 20 | 25 |
Granted - Shares | 6 | 6 |
Stock options exercised and other in shares | -3 | -10 |
Forfeitures and expirations - Shares | -1 | -1 |
Outstanding, end of period - Shares | 22 | 20 |
Exercisable, end of period - Shares | 11 | 10 |
Outstanding, beginning of period - Weighted-average exercise price | $54 | $50 |
Granted - Weighted-average exercise price | $60 | $60 |
Exercised - Weighted-average exercise price | $50 | $48 |
Forfeitures and expirations - Weighted-average exercise price | $58 | $55 |
Outstanding, end of period - Weighted-average exercise price | $56 | $53 |
Exercisable, end of period - Weighted-average exercise price | $52 | $50 |
Outstanding, end of period - Weighted-average remaining contractual term (years) | '7 years 3 months 18 days | '7 years 2 months 12 days |
Exercisable, end of period - Weighted-average remaining contractual term (years) | '5 years 9 months 18 days | '5 years 6 months |
Outstanding, end of period - Aggregate intrinsic value | $132 | $111 |
Exercisable, end of period - Aggregate intrinsic value | $102 | $88 |
Weighted-average fair value of options granted | $6.70 | $5.92 |
Stock_Compensation_Fair_Value_
Stock Compensation (Fair Value Assumptions) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Stock Compensation [Abstract] | ' | ' |
Weighted-average expected volatility | 15.00% | 15.00% |
Weighted-average expected term (years) | '7 years 4 months 2 days | '7 years 5 months 8 days |
Weighted-average risk-free interest rate | 2.35% | 1.49% |
Dividend yield | 3.00% | 2.90% |
Total intrinsic value of options exercised | $44 | $133 |
Stock_Compensation_Maximum_Fut
Stock Compensation (Maximum Future Value of Performance Shares) (Details) (USD $) | Feb. 22, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 |
In Millions, except Share data, unless otherwise specified | 2011 Award [Member] | 2012 Award [Member] | 2013 Award [Member] | 2014 Award [Member] |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Maximum Future Value of Performance Shares | ' | $22 | $24 | $28 |
Performance share grant target distribution | ' | ' | ' | 223,000 |
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 | 60.00% | ' | ' | ' |
Performance share award settlement in dollars | $3 | ' | ' | ' |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Recognized net loss | ($7) | ' | ' | ' |
Curtailment | 12 | ' | ' | ' |
Pension [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 27 | 33 | 80 | 101 |
Interest cost | 56 | 51 | 169 | 151 |
Expected return on plan assets | -104 | -90 | -313 | -269 |
Amortization of unrecognized prior service cost | 3 | 4 | 10 | 12 |
Total expense | -18 | -2 | -54 | -5 |
Other Nonpension Postretirement [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 7 | 8 | 21 | 25 |
Interest cost | 13 | 13 | 40 | 37 |
Expected return on plan assets | -24 | -21 | -73 | -65 |
Amortization of unrecognized prior service cost | -1 | 0 | -2 | -2 |
Recognized net loss | 7 | ' | 7 | ' |
Curtailment | -12 | ' | -12 | ' |
Total expense | -10 | 0 | -19 | -5 |
Postemployment [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 2 | 2 | 6 | 5 |
Interest cost | 1 | 1 | 3 | 3 |
Recognized net loss | 1 | 1 | 3 | 4 |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Employer contributions to employee benefit plans | $7 | $6 | $44 | $42 | $48 |
Total current year projected employer contributions | ' | ' | 57 | ' | ' |
Pension [Member] | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Employer contributions to employee benefit plans | 5 | 2 | 34 | 30 | 34 |
Total current year projected employer contributions | ' | ' | 43 | ' | ' |
Nonpension Postretirement [Member] | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Employer contributions to employee benefit plans | 2 | 4 | 10 | 12 | 14 |
Total current year projected employer contributions | ' | ' | $14 | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 |
Income Taxes [Abstract] | ' | ' | ' |
Effective income tax rate | 27.70% | 27.40% | 28.60% |
Uncertain tax positions classified as a net current liability | $6 | ' | $6 |
Projected additions | 8 | ' | 8 |
Unrecognized tax benefits that would affect the Company's effective income tax rate | $61 | ' | $61 |
Income_Taxes_Total_Gross_Unrec
Income Taxes (Total Gross Unrecognized Tax Benefits) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Income Taxes [Abstract] | ' |
Beginning balance | $79 |
Additions, current year | 7 |
Reductions, current year | 0 |
Additions, prior years | 6 |
Reductions, prior years | -9 |
Settlements | 1 |
Ending balance | $84 |
Income_Taxes_Income_Taxrelated
Income Taxes (Income Tax-related Interest Accrued) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Income Taxes [Abstract] | ' |
Interest accrued | $20 |
Increase in tax-related interest and penalties | $3 |
Derivative_Instruments_and_Fai2
Derivative Instruments and Fair Value Measurements (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Derivative Instruments and Fair Value Measurements [Abstract] | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $2 |
Fair value of derivative instruments with credit-risk-related contingent features in a liability position | 79 |
Additional collateral required to be posted if the credit risk related contingent features were triggered | 64 |
Collateral already posted | $15 |
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. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | $4,251 | $3,278 |
Foreign Currency Exchange Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | 735 | 517 |
Interest Rate Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | 2,997 | 2,400 |
Commodity Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional amount of derivatives | $519 | $361 |
Derivative_Instruments_and_Fai4
Derivative Instruments and Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | $14,000,000 | $7,000,000 |
Liabilities | -91,000,000 | -95,000,000 |
Not Designated [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 0 | 3,000,000 |
Liabilities | -35,000,000 | -7,000,000 |
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 | 0 | 3,000,000 |
Liabilities | -35,000,000 | -7,000,000 |
Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 14,000,000 | 7,000,000 |
Liabilities | -91,000,000 | -95,000,000 |
Level 2 [Member] | Not Designated [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign Currency Exchange Contracts [Member] | Other Prepaid Assets [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 14,000,000 | 7,000,000 |
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 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 14,000,000 | 7,000,000 |
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | -6,000,000 | -8,000,000 |
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 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | -6,000,000 | -8,000,000 |
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 | 2,500,000,000 |
Interest Rate Contracts [Member] | Other Current Liabilities [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | 25,000,000 | ' |
Interest Rate Contracts [Member] | Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | -38,000,000 | -59,000,000 |
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 | -38,000,000 | -59,000,000 |
Commodity Contracts [Member] | Other Prepaid Assets [Member] | Not Designated [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 0 | 3,000,000 |
Commodity Contracts [Member] | Other Prepaid Assets [Member] | Level 1 [Member] | Not Designated [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | 0 | 3,000,000 |
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 | -9,000,000 |
Commodity Contracts [Member] | Other Current Liabilities [Member] | Not Designated [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | -35,000,000 | -7,000,000 |
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 | -35,000,000 | -7,000,000 |
Commodity Contracts [Member] | Other Current Liabilities [Member] | Level 2 [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | -10,000,000 | -9,000,000 |
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 | -12,000,000 | -19,000,000 |
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 | ($12,000,000) | ($19,000,000) |
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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | ||||
Fair Value Hedging [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | $5 | [1] | ($4) | [1] | $16 | [1] | $0 | [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] | -1 | [1] | 3 | [1] | 2 | [1] |
Fair Value Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | 4 | [1] | -3 | [1] | 13 | [1] | -2 | [1] |
Cash Flow Hedging [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | -2 | -7 | -26 | 5 | ||||
Gain (loss) reclassified from AOCI into income | 0 | 2 | 11 | 4 | ||||
Gain (loss) recognized in income | -1 | [1] | 0 | [1] | -3 | [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 | -3 | 4 | -2 | ||||
Gain (loss) reclassified from AOCI into income | 2 | 1 | 5 | 1 | ||||
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 | 16 | -4 | 13 | 8 | ||||
Gain (loss) reclassified from AOCI into income | 0 | 2 | 2 | 7 | ||||
Gain (loss) recognized in income | -1 | [1] | 0 | [1] | -3 | [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 | -20 | 0 | -43 | 0 | ||||
Gain (loss) reclassified from AOCI into income | 0 | 1 | 9 | 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 | -1 | 0 | 0 | -1 | ||||
Gain (loss) reclassified from AOCI into income | -2 | -2 | -5 | -7 | ||||
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 | 42 | 0 | 47 | 0 | ||||
Net Investment Hedging [Member] | Foreign Currency Exchange Contracts [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in AOCI | 42 | 0 | 47 | 0 | ||||
Not Designated [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | -60 | -1 | -71 | -24 | ||||
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 | 1 | -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 | 0 | 0 | 0 | 2 | ||||
Not Designated [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ' | ' | -4 | 0 | ||||
Not Designated [Member] | Commodity Contracts [Member] | Cost of Goods Sold [Member] | ' | ' | ' | ' | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ||||
Gain (loss) recognized in income | ($61) | ($2) | ($66) | ($26) | ||||
[1] | Includes the ineffective portion and amount excluded from effectiveness testing. |
Derivative_Instruments_and_Fai6
Derivative Instruments and Fair Value Measurements (Schedule of Offsetting Assets and Liabilities) (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 |
In Millions, unless otherwise specified | ||
Offsetting [Abstract] | ' | ' |
Net Amounts of Assets Presented in the Balance Sheet | $14 | $10 |
Financial Instruments, Gross Amount Not Offset In Balance Sheet | -11 | -10 |
Cash Collateral Posted, Gross Amount Not Offset In Balance Sheet | 0 | 0 |
Net Amount, Assets Derivatives | 3 | 0 |
Net Amounts of Liabilities Presented In Balance sheet | -126 | -102 |
Financial Instruments, Gross Amount Not Offset in Balance Sheet | 11 | 10 |
Cash Collateral Received, Gross Amount Not Offset In Balance Sheet | 64 | 21 |
Net Amount, Liability Derivatives | ($51) | ($71) |
Derivative_Instruments_and_Fai7
Derivative Instruments and Fair Value Measurements (Assets Measured at Fair Value) (Details) (Project K [Member], Level 3, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Project K [Member] | Level 3 | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Line Items | ' |
Noncurrent Assets | $24 |
Property Plant And Equipment Fair Value Disclosure | 3 |
Impairment Of Long Lived Assets To Be Disposed Of | ($21) |
Derivative_Instruments_and_Fai8
Derivative Instruments and Fair Value Measurements (Fair Value of Long-term Debt) (Details) (USD $) | Sep. 27, 2014 | Dec. 28, 2013 | |
In Millions, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Current maturities of long-term debt, fair value | $607 | ' | |
Long-term debt, fair value | 6,471 | ' | |
Long-term debt fair value, total | 7,078 | ' | |
Current maturities of long-term debt, carrying value | 607 | 289 | [1] |
Long-term debt, carrying value | 5,963 | 6,330 | [1] |
Long-term debt total, carrying value | 6,570 | ' | |
Net Investment Hedging [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Long-term debt, carrying value | $639 | ' | |
[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. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $3,639 | $3,716 | $11,066 | $11,291 |
Operating profit | 365 | 504 | 1,446 | 1,577 |
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. 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 | 841 | 883 | 2,522 | 2,657 |
Operating profit | 118 | 132 | 389 | 475 |
Reportable segments information | ' | ' | 'U.S. Morning Foods includes cereal, toaster pastries, health and wellness bars, and beverages. | ' |
U.S. Snacks [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 849 | 886 | 2,645 | 2,704 |
Operating profit | 67 | 105 | 292 | 341 |
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 | 270 | 281 | 918 | 932 |
Operating profit | 59 | 70 | 209 | 210 |
Reportable segments information | ' | ' | 'U.S. Specialty includes 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 | 369 | 382 | 1,111 | 1,173 |
Operating profit | 58 | 70 | 192 | 223 |
Reportable segments information | ' | ' | 'North America Other includes 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 | 429 | 515 | 1,440 | 1,661 |
Europe [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 726 | 729 | 2,206 | 2,144 |
Operating profit | 61 | 74 | 181 | 220 |
Reportable segments information | ' | ' | 'Europe, which consists principally of European countries; | ' |
Latin America [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 320 | 302 | 918 | 914 |
Operating profit | 50 | 39 | 145 | 129 |
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 | 264 | 253 | 746 | 767 |
Operating profit | 16 | 25 | 32 | 63 |
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 | ($64) | ($11) | $6 | ($84) |