Exhibit 99.1
Kellogg Company News | ||||||
For release: | May 5, 2015 | |||||
Analyst Contact: | Simon Burton, CFA | (269) 961-6636 | ||||
Media Contact: | Kris Charles | (269) 961-3799 |
KELLOGG COMPANY REPORTS FIRST QUARTER 2015 RESULTS,
REAFFIRMS FULL-YEAR CURRENCY-NEUTRAL COMPARABLE GUIDANCE
BATTLE CREEK, Mich. – Kellogg Company (NYSE: K) today announced currency-neutral comparable first-quarter results for net sales, operating profit, and earnings per share that were greater than the company’s expectations.
Financial Summary: | Quarter ended | |||||||||||
(millions, except per share data) | April 4, 2015 | March 29, 2014 | % Change | |||||||||
Reported Net Sales | $ | 3,556 | $ | 3,742 | -5.0 | % | ||||||
Comparable Net Sales * | $ | 3,553 | $ | 3,740 | -5.0 | % | ||||||
Currency Neutral Comparable Net Sales * | $ | 3,729 | $ | 3,740 | -0.3 | % | ||||||
Reported Operating Profit | $ | 384 | $ | 614 | -37.5 | % | ||||||
Comparable Operating Profit * | $ | 527 | $ | 559 | -5.8 | % | ||||||
Currency Neutral Comparable Operating Profit * | $ | 548 | $ | 559 | -1.9 | % | ||||||
Reported Net Income (Loss) Attributable to Kellogg Company | $ | 227 | $ | 406 | -44.0 | % | ||||||
Comparable Net Income (Loss) Attributable to Kellogg Company * | $ | 351 | $ | 367 | -4.3 | % | ||||||
Currency Neutral Comparable Net Income (Loss) Attributable to Kellogg Company * | $ | 370 | $ | 367 | 0.9 | % | ||||||
Reported Earnings Per Share | $ | 0.64 | $ | 1.12 | -42.9 | % | ||||||
Comparable Earnings Per Share * | $ | 0.98 | $ | 1.01 | -3.0 | % | ||||||
Currency Neutral Comparable Earnings Per Share * | $ | 1.04 | $ | 1.01 | 3.0 | % |
* | Non-GAAP financial measures. See the tables herein for important information regarding these measures and a full reconciliation to the most comparable GAAP measure. |
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As detailed above, first quarter 2015 reported net sales decreased by 5.0 percent to $3.6 billion, primarily due to the effect of currency translation. Currency-neutral comparable net sales decreased by 0.3 percent over the same period; this result included growth in each of the international regions. First quarter 2015 reported operating profit was $384 million, a decline of 37.5 percent; this decrease was driven primarily by the impact that asset returns and changes in interest rates had on pension plans. The decline in currency-neutral comparable operating profit was largely the result of slightly lower net sales.
Reported earnings for the first quarter of 2015 were $227 million, or $0.64 per share, a decrease of 43 percent from the $1.12 per share reported in the first quarter of last year. This quarter’s reported earnings per share included negative impacts from mark-to-market of $0.13 per share and costs associated with the Project K efficiency and effectiveness program of $0.13 per share. In addition, reported results included $0.01 per share of integration costs related to the acquisition of Pringles and Bisco Misr and $0.07 of other costs. Excluding these items, comparable first quarter 2015 earnings were $0.98 per share, greater than the company’s expectations. This result included a negative impact of $0.06 per share from currency translation; comparable earnings per share excluding the impact of currencies would have been $1.04 per share.
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Reconciliation of Reported to Currency-Neutral Comparable Earnings Per Share | ||||
First Quarter 2015 ($) | ||||
Reported EPS | 0.64 | |||
Mark-to-Market | (0.13 | ) | ||
Project K | (0.13 | ) | ||
Integration | (0.01 | ) | ||
Other Items | (0.07 | ) | ||
53rd Week | — | |||
Comparable EPS | 0.98 | |||
Foreign Exchange | (0.06 | ) | ||
Currency-Neutral | ||||
Comparable* EPS | 1.04 |
“We were pleased to report improved sales trends in the first quarter. In fact, our results exceeded our expectations and we are on-track for the year,” said John Bryant, Kellogg Company’s chairman and chief executive officer. ���We’ve made great progress with Project K and are reinvesting to drive profitable sales growth.”
North America
Net sales posted by Kellogg North America were $2.4 billion in the first quarter, a reported decrease of 3.7 percent;currency-neutral comparable net sales decreased by 2.8 percent. The U.S. Morning Foods segment posted a currency-neutral comparable net sales decline of 2.9 percent, which included improved trends in the Cereal business. Currency-neutral comparable net sales in the U.S. Snacks segment decreased by 1.1 percent, also reflecting an improvement in sales trends. The U.S. Specialty Channels segment posted a 2.5 percent decline in currency-neutral comparable
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net sales in the quarter due to a discrete item. The North America Other segment, which is now composed of the U.S. Frozen Foods, Kashi, and Canadian businesses, posted a 6.1 percent decrease in currency-neutral comparable net sales. Reported operating profit in North America decreased by 9.9 percent; currency-neutral comparable operating profit declined by 8.0 percent, largely as the result of lower sales.
International
Reported net sales decreased by 13.8 percent in Europe in the quarter; currency-neutral comparable net sales increased by 1.0 percent including double-digit currency-neutral comparable net sales growth for the Pringles business. In Latin America, reported net sales increased by 6.3 percent; currency-neutral comparable net sales increased by 15.7 percent, including broad-based growth across the region. Reported net sales in Asia Pacific decreased by 5.3 percent; currency-neutral comparable net sales increased by 4.0 percent due to good rates of growth in the Asian businesses.
Interest and Tax
Kellogg’s interest expense was $54 million in the first quarter. The comparable effective tax rate* in the first quarter of 2015 was 25.4 percent, lower than last year due to certain discrete items.
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Cash flow
Cash flow,* a non-GAAP measure defined as cash from operating activities less capital expenditures, was $12 million for the quarter. This year-over-year decline was primarily due to earnings results, the timing of an interest payment, and increased cash costs associated with Project K. The company continues to expect that cash flow for the full year will be approximately $1.0 billion. Kellogg repurchased $285 million of shares during the first quarter.
Kellogg Reaffirms Full-Year Currency-Neutral Comparable 2015 Guidance
The company reaffirmed previous guidance for currency-neutral comparable net sales, operating profit, and earnings per share in 2015; the company also reaffirmed guidance for full-year cash flow. Currency-neutral comparable net sales are expected to remain approximately unchanged year-over-year. Kellogg expects full-year 2015 currency-neutral comparable operating profit to decrease at a rate between two and four percent. Full-year 2015 currency-neutral comparable earnings per share are anticipated to be in a range between two percent lower and approximately unchanged. The estimates for currency-neutral comparable operating profit and currency-neutral comparable earnings per share include a negative impact of between three and four percentage points from the rebasing of incentive compensation for 2015. Guidance for both operating profit and earnings per share excludes the impact of mark-to-market adjustments, 2014’s 53rd week, integration costs, costs related to Project K, acquisitions, dispositions, foreign-currency translation, and other items that could affect comparability. Cash flow is expected to be approximately $1.0 billion, which includes the cash required by Project K.
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Conference Call / Webcast
Kellogg will host a conference call to discuss these results on Tuesday, May 5th, 2015 at 9:30 a.m. Eastern Time. The conference call and accompanying presentation slides will be broadcast live over the Internet at http://investor.kelloggs.com. Analysts and institutional investors may participate in the Q&A session by dialing (855) 209-8258 in the U.S., and (412) 542-4104 outside of the U.S. Members of the media and the public are invited to attend in a listen-only mode. Information regarding the rebroadcast is available at http://investor.kelloggs.com.
About Kellogg Company
At Kellogg Company (NYSE: K), we are driven to enrich and delight the world through foods and brands that matter. With 2014 sales of approximately $14.6 billion, Kellogg is the world’s leading cereal company; second largest producer of cookies and crackers; a leading producer of savory snacks; and a leading North American frozen foods company. Every day, our well-loved brands nourish families so they can flourish and thrive. These brands include Kellogg’s®, Keebler®, Special K®, Pringles®, Kellogg’s Frosted Flakes®, Pop-Tarts®, Kellogg’s Corn Flakes®, Rice Krispies®, Kashi®, Cheez-It®, Eggo®, Coco Pops®, Mini-Wheats®, and many more. To learn more about our responsible business leadership, foods that delight and how we strive to make a difference in our communities around the world, visit www.kelloggcompany.com.
Use of Non-GAAP Financial Measures
Certain financial measures have been provided on a non-GAAP (Generally Accepted Accounting Principles) basis. Management believes the use of such non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance
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of the company and its segments and in the analysis of ongoing operating trends. All non-GAAP financial measures have been reconciled with the most directly comparable GAAP financial measures in the attachments provided with the release.
Forward-Looking Statements Disclosure
This news release contains, or incorporates by reference, “forward-looking statements” with projections concerning, among other things, the Company’s efficiency-and-effectiveness program (Project K), the integration of acquired businesses, the Company’s strategy, and the Company’s sales, earnings, margin, operating profit, costs and expenditures, interest expense, tax rate, capital expenditure, dividends, cash flow, debt reduction, share repurchases, costs, charges, rates of return, brand building, ROIC, working capital, growth, new products, innovation, cost reduction projects, workforce reductions, savings, and competitive pressures. Forward-looking statements include predictions of future results or activities and may contain the words “expects,” “believes,” “should,” “will,” “anticipates,” “projects,” “estimates,” “implies,” “can,” or words or phrases of similar meaning.
The Company’s actual results or activities may differ materially from these predictions. The Company’s future results could also be affected by a variety of factors, including the ability to implement Project K as planned, whether the expected amount of costs associated with Project K will differ from forecasts, whether the Company will be able to realize the anticipated benefits from Project K in the amounts and times expected, the ability to realize the anticipated benefits and synergies from business acquisitions in the amounts and at the times expected, the impact of competitive conditions; the effectiveness of pricing, advertising, and promotional programs; the success of innovation, renovation and new product introductions; the recoverability of the carrying
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value of goodwill and other intangibles; the success of productivity improvements and business transitions; commodity and energy prices; labor costs; disruptions or inefficiencies in supply chain; the availability of and interest rates on short-term and long-term financing; actual market performance of benefit plan trust investments; the levels of spending on systems initiatives, properties, business opportunities, integration of acquired businesses, and other general and administrative costs; changes in consumer behavior and preferences; the effect of U.S. and foreign economic conditions on items such as interest rates, statutory tax rates, currency conversion and availability; legal and regulatory factors including changes in food safety, advertising and labeling laws and regulations; the ultimate impact of product recalls; business disruption or other losses from war, terrorist acts or political unrest; and other items.
Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to update them publicly.
[Kellogg Company Financial News]
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Kellogg Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
(millions, except per share data)
Quarter ended | ||||||||
(Results are unaudited) | April 4, 2015 | March 29, 2014 | ||||||
Net sales | $ | 3,556 | $ | 3,742 | ||||
Cost of goods sold | 2,311 | 2,238 | ||||||
Selling, general and administrative expense | 861 | 890 | ||||||
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Operating profit | 384 | 614 | ||||||
Interest expense | 54 | 52 | ||||||
Other income (expense), net | (26 | ) | 10 | |||||
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Income before income taxes | 304 | 572 | ||||||
Income taxes | 76 | 165 | ||||||
Earnings (loss) from joint ventures | (1 | ) | (1 | ) | ||||
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Net income | $ | 227 | $ | 406 | ||||
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Net income (loss) attributable to noncontrolling interests | — | — | ||||||
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Net income attributable to Kellogg Company | $ | 227 | $ | 406 | ||||
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Per share amounts: | ||||||||
Basic | $ | .64 | $ | 1.13 | ||||
Diluted | $ | .64 | $ | 1.12 | ||||
Dividends per share | $ | .49 | $ | .46 | ||||
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Average shares outstanding: | ||||||||
Basic | 355 | 360 | ||||||
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Diluted | 357 | 362 | ||||||
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Actual shares outstanding at period end | 353 | 358 | ||||||
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Kellogg Company and Subsidiaries
SELECTED OPERATING SEGMENT DATA
(millions)
Quarter ended | ||||||||
(Results are unaudited) | April 4, 2015 | March 29, 2014 | ||||||
Net sales | ||||||||
U.S. Morning Foods | $ | 776 | $ | 799 | ||||
U.S. Snacks | 854 | 864 | ||||||
U.S. Specialty | 361 | 372 | ||||||
North America Other | 433 | 482 | ||||||
Europe | 607 | 705 | ||||||
Latin America | 295 | 278 | ||||||
Asia Pacific | 230 | 242 | ||||||
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Consolidated | $ | 3,556 | $ | 3,742 | ||||
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Operating profit | ||||||||
U.S. Morning Foods | $ | 127 | $ | 126 | ||||
U.S. Snacks | 80 | 86 | ||||||
U.S. Specialty | 78 | 87 | ||||||
North America Other | 59 | 83 | ||||||
Europe | 61 | 65 | ||||||
Latin America | 51 | 48 | ||||||
Asia Pacific | 12 | 16 | ||||||
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Total Reportable Segments | 468 | 511 | ||||||
Corporate | (84 | ) | 103 | |||||
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Consolidated | $ | 384 | $ | 614 | ||||
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Kellogg Company and Subsidiaries
CONSOLIDATED STATEMENT OF CASH FLOWS
(millions)
Quarter ended | ||||||||
(unaudited) | April 4, 2015 | March 29, 2014 | ||||||
Operating activities | ||||||||
Net income | $ | 227 | $ | 406 | ||||
Adjustments to reconcile net income to operating cash flows: | ||||||||
Depreciation and amortization | 131 | 116 | ||||||
Postretirement benefit plan expense (benefit) | (21 | ) | (22 | ) | ||||
Deferred income taxes | (2 | ) | 45 | |||||
Other | 46 | 6 | ||||||
Postretirement benefit plan contributions | (12 | ) | (28 | ) | ||||
Changes in operating assets and liabilities, net of acquisitions | (274 | ) | (255 | ) | ||||
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Net cash provided by (used in) operating activities | 95 | 268 | ||||||
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Investing activities | ||||||||
Additions to properties | (83 | ) | (97 | ) | ||||
Acquisitions, net of cash acquired | (117 | ) | — | |||||
Other | 3 | (2 | ) | |||||
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Net cash provided by (used in) investing activities | (197 | ) | (99 | ) | ||||
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Financing activities | ||||||||
Net issuances (reductions) of notes payable | (19 | ) | 986 | |||||
Issuances of long-term debt | 672 | — | ||||||
Reductions of long-term debt | (243 | ) | (682 | ) | ||||
Net issuances of common stock | 57 | 37 | ||||||
Common stock repurchases | (285 | ) | (321 | ) | ||||
Cash dividends | (174 | ) | (166 | ) | ||||
Other | 5 | (1 | ) | |||||
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Net cash provided by (used in) financing activities | 13 | (147 | ) | |||||
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Effect of exchange rate changes on cash and cash equivalents | (5 | ) | (11 | ) | ||||
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Increase (decrease) in cash and cash equivalents | (94 | ) | 11 | |||||
Cash and cash equivalents at beginning of period | 443 | 273 | ||||||
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Cash and cash equivalents at end of period | $ | 349 | $ | 284 | ||||
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Supplemental financial data: | ||||||||
Net cash provided by (used in) operating activities | $ | 95 | $ | 268 | ||||
Additions to properties | (83 | ) | (97 | ) | ||||
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Cash Flow (operating cash flow less property additions) (a) | $ | 12 | $ | 171 | ||||
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(a) | We use this non-GAAP measure of cash flow to focus management and investors on the amount of cash available for debt reduction, dividend distributions, acquisition opportunities, and share repurchase. |
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Kellogg Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(millions, except per share data)
April 4, 2015 (unaudited) | January 3, 2015 * | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 349 | $ | 443 | ||||
Accounts receivable, net | 1,503 | 1,276 | ||||||
Inventories: | ||||||||
Raw materials and supplies | 353 | 327 | ||||||
Finished goods and materials in process | 846 | 952 | ||||||
Deferred income taxes | 170 | 184 | ||||||
Other prepaid assets | 220 | 158 | ||||||
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Total current assets | 3,441 | 3,340 | ||||||
Property, net of accumulated depreciation of $5,466 and $5,526 | 3,719 | 3,769 | ||||||
Goodwill | 4,993 | 4,971 | ||||||
Other intangibles, net of accumulated amortization of $45 and $43 | 2,282 | 2,295 | ||||||
Pension | 254 | 250 | ||||||
Other assets | 519 | 528 | ||||||
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Total assets | $ | 15,208 | $ | 15,153 | ||||
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Current liabilities | ||||||||
Current maturities of long-term debt | $ | 360 | $ | 607 | ||||
Notes payable | 809 | 828 | ||||||
Accounts payable | 1,537 | 1,528 | ||||||
Accrued advertising and promotion | 453 | 446 | ||||||
Accrued income taxes | 72 | 39 | ||||||
Accrued salaries and wages | 237 | 320 | ||||||
Other current liabilities | 543 | 596 | ||||||
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Total current liabilities | 4,011 | 4,364 | ||||||
Long-term debt | 6,561 | 5,935 | ||||||
Deferred income taxes | 764 | 726 | ||||||
Pension liability | 760 | 777 | ||||||
Nonpension postretirement benefits | 75 | 82 | ||||||
Other liabilities | 385 | 418 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Common stock, $.25 par value | 105 | 105 | ||||||
Capital in excess of par value | 689 | 678 | ||||||
Retained earnings | 6,739 | 6,689 | ||||||
Treasury stock, at cost | (3,696 | ) | (3,470 | ) | ||||
Accumulated other comprehensive income (loss) | (1,291 | ) | (1,213 | ) | ||||
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Total Kellogg Company equity | 2,546 | 2,789 | ||||||
Noncontrolling interests | 106 | 62 | ||||||
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Total equity | 2,652 | 2,851 | ||||||
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Total liabilities and equity | $ | 15,208 | $ | 15,153 | ||||
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* | Condensed from audited financial statements. |
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Kellogg Company and Subsidiaries
Analysis of net sales and operating profit performance
First Quarter of 2015 versus 2014
(dollars in millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | North America | Europe | Latin America | Asia Pacific | Corporate | Consolidated | ||||||||||||||||||||||||||||||
2015 net sales | $ | 776 | $ | 854 | $ | 361 | $ | 433 | $ | 2,424 | $ | 607 | $ | 295 | $ | 230 | $ | 0 | $ | 3,556 | ||||||||||||||||||||
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2014 net sales | $ | 799 | $ | 864 | $ | 372 | $ | 482 | $ | 2,517 | $ | 705 | $ | 278 | $ | 242 | $ | 0 | $ | 3,742 | ||||||||||||||||||||
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% change - 2015 vs. 2014: | ||||||||||||||||||||||||||||||||||||||||
As Reported | -2.9 | % | -1.1 | % | -3.0 | % | -10.2 | % | -3.7 | % | -13.8 | % | 6.3 | % | -5.3 | % | 0.0 | % | -5.0 | % | ||||||||||||||||||||
Project K (b) | 0.0 | % | 0.0 | % | 0.0 | % | -0.5 | % | -0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.1 | % | ||||||||||||||||||||
Acquisitions/divestitures (d) | 0.0 | % | 0.0 | % | -0.5 | % | 0.0 | % | -0.1 | % | 1.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | % | ||||||||||||||||||||
Differences in shipping days | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.4 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.1 | % | ||||||||||||||||||||
Comparable growth (e) | -2.9 | % | -1.1 | % | -2.5 | % | -9.7 | % | -3.5 | % | -14.5 | % | 6.3 | % | -5.3 | % | 0.0 | % | -5.0 | % | ||||||||||||||||||||
Foreign currency impact | 0.0 | % | 0.0 | % | 0.0 | % | -3.6 | % | -0.7 | % | -15.5 | % | -9.4 | % | -9.3 | % | 0.0 | % | -4.7 | % | ||||||||||||||||||||
Currency-Neutral Comparable growth (f) | -2.9 | % | -1.1 | % | -2.5 | % | -6.1 | % | -2.8 | % | 1.0 | % | 15.7 | % | 4.0 | % | 0.0 | % | -0.3 | % | ||||||||||||||||||||
Volume (tonnage) (g) | -2.3 | % | 1.4 | % | 4.5 | % | 5.0 | % | 0.0 | % | -0.7 | % | ||||||||||||||||||||||||||||
Pricing/mix | -0.5 | % | -0.4 | % | 11.2 | % | -1.0 | % | 0.0 | % | 0.4 | % | ||||||||||||||||||||||||||||
(dollars in millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | North America | Europe | Latin America | Asia Pacific | Corporate | Consolidated | ||||||||||||||||||||||||||||||
2015 operating profit | $ | 127 | $ | 80 | $ | 78 | $ | 59 | $ | 344 | $ | 61 | $ | 51 | $ | 12 | ($ | 84 | ) | $ | 384 | |||||||||||||||||||
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2014 operating profit | $ | 126 | $ | 86 | $ | 87 | $ | 83 | $ | 382 | $ | 65 | $ | 48 | $ | 16 | $ | 103 | $ | 614 | ||||||||||||||||||||
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% change - 2015 vs. 2014: | ||||||||||||||||||||||||||||||||||||||||
As Reported | 0.2 | % | -7.3 | % | -10.2 | % | -27.9 | % | -9.9 | % | -5.8 | % | 4.8 | % | -22.8 | % | -182.1 | % | -37.5 | % | ||||||||||||||||||||
Mark-to-market (a) | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -154.1 | % | -28.1 | % | ||||||||||||||||||||
Project K (b) | 1.8 | % | -3.1 | % | -0.1 | % | -4.2 | % | -1.2 | % | -9.4 | % | 8.1 | % | 2.3 | % | -213.8 | % | -3.5 | % | ||||||||||||||||||||
Integration impact (c) | 0.0 | % | -0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.9 | % | -0.1 | % | -8.9 | % | -24.8 | % | -0.2 | % | ||||||||||||||||||||
Acquisitions/divestitures (d) | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.7 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | % | ||||||||||||||||||||
Differences in shipping days | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.1 | % | ||||||||||||||||||||
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Comparable growth (e) | -1.6 | % | -4.1 | % | -10.2 | % | -23.7 | % | -8.7 | % | 2.5 | % | -3.2 | % | -16.2 | % | 210.6 | % | -5.8 | % | ||||||||||||||||||||
Foreign currency impact | 0.4 | % | 0.0 | % | 0.0 | % | -4.3 | % | -0.7 | % | -10.3 | % | -8.4 | % | -13.0 | % | -87.1 | % | -3.9 | % | ||||||||||||||||||||
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Currency-Neutral Comparable growth (f) | -2.0 | % | -4.1 | % | -10.2 | % | -19.4 | % | -8.0 | % | 12.8 | % | 5.2 | % | -3.2 | % | 297.7 | % | -1.9 | % | ||||||||||||||||||||
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(a) | Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-to-market adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are recognized in the quarter they occur. |
(b) | Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. 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. |
(c) | Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions. |
(d) | Includes impact of Bisco Misr acquisition during the first quarter of 2015 and the divestiture of Loma Linda in 2014. |
(e) | Comparable net sales growth and comparable operating profit growth are non-GAAP measures which are reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
(f) | Currency-Neutral Comparable Net Sales growth and Currency Neutral Comparable Operating Profit growth are non-GAAP measures which are reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
(g) | We measure the volume impact (tonnage) on revenues based on the stated weight of our product shipments. |
- more -
- 13 -
Kellogg Company and Subsidiaries
Restructuring and cost reduction activities
$ millions
Quarter ended April 4, 2015 | ||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||
2015 | ||||||||||||||||
U.S. Morning Foods | $ | — | $ | 5 | $ | 3 | $ | 8 | ||||||||
U.S. Snacks | — | 5 | 4 | 9 | ||||||||||||
U.S. Specialty | — | — | 1 | 1 | ||||||||||||
North America Other | 2 | 2 | 2 | 6 | ||||||||||||
Europe | — | 16 | 3 | 19 | ||||||||||||
Latin America | — | — | — | — | ||||||||||||
Asia Pacific | — | 4 | 1 | 5 | ||||||||||||
Corporate | — | — | 20 | 20 | ||||||||||||
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| |||||||||
Total | $ | 2 | $ | 32 | $ | 34 | $ | 68 | ||||||||
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| |||||||||
Quarter ended March 29, 2014 | ||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||
2014 | ||||||||||||||||
U.S. Morning Foods | $ | — | $ | 9 | $ | 2 | $ | 11 | ||||||||
U.S. Snacks | — | 5 | 2 | 7 | ||||||||||||
U.S. Specialty | — | — | 1 | 1 | ||||||||||||
North America Other | — | 2 | 1 | 3 | ||||||||||||
Europe | — | 5 | 7 | 12 | ||||||||||||
Latin America | — | — | 4 | 4 | ||||||||||||
Asia Pacific | — | 4 | 2 | 6 | ||||||||||||
Corporate | — | — | 10 | 10 | ||||||||||||
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Total | $ | — | $ | 25 | $ | 29 | $ | 54 | ||||||||
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2015 Variance - better(worse) than 2014 | ||||||||||||||||
U.S. Morning Foods | $ | — | $ | 4 | $ | (1 | ) | $ | 3 | |||||||
U.S. Snacks | — | — | (2 | ) | (2 | ) | ||||||||||
U.S. Specialty | — | — | — | — | ||||||||||||
North America Other | (2 | ) | — | (1 | ) | (3 | ) | |||||||||
Europe | — | (11 | ) | 4 | (7 | ) | ||||||||||
Latin America | — | — | 4 | 4 | ||||||||||||
Asia Pacific | — | — | 1 | 1 | ||||||||||||
Corporate | — | — | (10 | ) | (10 | ) | ||||||||||
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Total | $ | (2 | ) | $ | (7 | ) | $ | (5 | ) | $ | (14 | ) | ||||
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- more -
- 14 -
Kellogg Company and Subsidiaries
Integration Costs*
$ millions
Quarter ended April 4, 2015 | ||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||
2015 | ||||||||||||||||
Europe | $ | — | $ | 3 | $ | 2 | $ | 5 | ||||||||
Asia Pacific | — | 3 | — | 3 | ||||||||||||
Corporate | — | — | — | — | ||||||||||||
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Total | $ | — | $ | 6 | $ | 2 | $ | 8 | ||||||||
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Quarter ended March 29, 2014 | ||||||||||||||||
Net Sales | Cost of goods sold | Selling, general and administrative expense | Total | |||||||||||||
2014 | ||||||||||||||||
Europe | $ | — | $ | 4 | $ | 2 | $ | 6 | ||||||||
Asia Pacific | — | — | — | — | ||||||||||||
Corporate | — | — | 1 | 1 | ||||||||||||
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| |||||||||
Total | $ | — | $ | 4 | $ | 3 | $ | 7 | ||||||||
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| |||||||||
2015 Variance - better(worse) than 2014 | ||||||||||||||||
Europe | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Asia Pacific | — | (3 | ) | — | (3 | ) | ||||||||||
Corporate | — | — | 1 | 1 | ||||||||||||
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Total | $ | — | $ | (2 | ) | $ | 1 | $ | (1 | ) | ||||||
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* | Integration costs are charges incurred by the Company as a direct result of the work performed for the acquisition of the Pringles and Bisco Misr businesses. |
- more -
- 15 -
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts - Reported Net Sales to Currency-Neutral Comparable Net Sales
Quarter ended April 4, 2015
| ||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | |||||||||||||||||||||||||||
Reported Net Sales | $ | 776 | $ | 854 | $ | 361 | $ | 433 | $ | 607 | $ | 295 | $ | 230 | $ | — | $ | 3,556 | ||||||||||||||||||
Project K(a) | — | — | — | (2 | ) | — | — | — | — | (2 | ) | |||||||||||||||||||||||||
Acquisitions/divestitures(b) | — | — | — | — | 8 | — | — | — | 8 | |||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||||||||||||
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Comparable Net Sales(c) | $ | 776 | $ | 854 | $ | 361 | $ | 435 | $ | 602 | $ | 295 | $ | 230 | $ | — | $ | 3,553 | ||||||||||||||||||
Foreign currency impact | — | — | — | (18 | ) | (110 | ) | (26 | ) | (22 | ) | — | (176 | ) | ||||||||||||||||||||||
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Currency-Neutral Comparable Net Sales(d) | $ | 776 | $ | 854 | $ | 361 | $ | 453 | $ | 712 | $ | 321 | $ | 252 | $ | — | $ | 3,729 | ||||||||||||||||||
Quarter ended March 29, 2014
|
| |||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | |||||||||||||||||||||||||||
Reported Net Sales | $ | 799 | $ | 864 | $ | 372 | $ | 482 | $ | 705 | $ | 278 | $ | 242 | $ | — | $ | 3,742 | ||||||||||||||||||
Project K(a) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Acquisitions/divestitures(b) | — | — | 2 | — | — | — | — | — | 2 | |||||||||||||||||||||||||||
Differences in shipping days | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
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Comparable Net Sales(c) | $ | 799 | $ | 864 | $ | 370 | $ | 482 | $ | 705 | $ | 278 | $ | 242 | $ | — | $ | 3,740 | ||||||||||||||||||
Foreign currency impact | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
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Currency-Neutral Comparable Net Sales(d) | $ | 799 | $ | 864 | $ | 370 | $ | 482 | $ | 705 | $ | 278 | $ | 242 | $ | — | $ | 3,740 |
(a) | Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. 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. |
(b) | Includes impact of Bisco Misr acquisition during Q1 2015 and the 2014 divestiture of Loma Linda. |
(c) | Comparable net sales is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
(d) | Currency-Neutral Comparable Net Sales is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
- more -
- 16 -
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts - Reported Operating Profit to Currency-Neutral Comparable Operating Profit
Quarter ended April 4, 2015
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | |||||||||||||||||||||||||||
Reported Operating Profit | $ | 127 | $ | 80 | $ | 78 | $ | 59 | $ | 61 | $ | 51 | $ | 12 | $ | (84 | ) | $ | 384 | |||||||||||||||||
Mark-to-market(a) | — | — | — | — | — | — | — | (67 | ) | (67 | ) | |||||||||||||||||||||||||
Project K(b) | (8 | ) | (9 | ) | (1 | ) | (6 | ) | (19 | ) | — | (5 | ) | (20 | ) | (68 | ) | |||||||||||||||||||
Integration impact(c) | — | — | — | — | (5 | ) | — | (3 | ) | — | (8 | ) | ||||||||||||||||||||||||
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| |||||||||||||||||||
Comparable Operating Profit(d) | $ | 135 | $ | 89 | $ | 79 | $ | 65 | $ | 85 | $ | 51 | $ | 20 | $ | 3 | $ | 527 | ||||||||||||||||||
Foreign currency impact | 1 | — | — | (4 | ) | (8 | ) | (4 | ) | (2 | ) | (4 | ) | (21 | ) | |||||||||||||||||||||
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| |||||||||||||||||||
Currency-Neutral Comparable Operating Profit(e) | $ | 134 | $ | 89 | $ | 79 | $ | 69 | $ | 93 | $ | 55 | $ | 22 | $ | 7 | $ | 548 | ||||||||||||||||||
Quarter ended March 29, 2014 | ||||||||||||||||||||||||||||||||||||
(millions) | U.S. Morning Foods | U.S. Snacks | U.S. Specialty | North America Other | Europe | Latin America | Asia Pacific | Corporate | Kellogg Consolidated | |||||||||||||||||||||||||||
Reported Operating Profit | $ | 126 | $ | 86 | $ | 87 | $ | 83 | $ | 65 | $ | 48 | $ | 16 | $ | 103 | $ | 614 | ||||||||||||||||||
Mark-to-market(a) | — | — | — | — | — | — | — | 116 | 116 | |||||||||||||||||||||||||||
Project K(b) | (11 | ) | (7 | ) | (1 | ) | (3 | ) | (12 | ) | (4 | ) | (6 | ) | (10 | ) | (54 | ) | ||||||||||||||||||
Integration impact(c) | — | — | — | — | (6 | ) | — | — | (1 | ) | (7 | ) | ||||||||||||||||||||||||
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| |||||||||||||||||||
Comparable Operating Profit(d) | $ | 137 | $ | 93 | $ | 88 | $ | 86 | $ | 83 | $ | 52 | $ | 22 | $ | (2 | ) | $ | 559 | |||||||||||||||||
Foreign currency impact | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
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| |||||||||||||||||||
Currency-Neutral Comparable Operating Profit(e) | $ | 137 | $ | 93 | $ | 88 | $ | 86 | $ | 83 | $ | 52 | $ | 22 | $ | (2 | ) | $ | 559 |
(a) | Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-to-market adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are recognized in the quarter they occur. |
(b) | Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. 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. |
(c) | Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions. |
(d) | Comparable operating profit is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
(e) | Currency-Neutral Comparable operating profit is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
- more -
- 17 -
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts - Reported Net Income Attributable to Kellogg
to Currency-Neutral Comparable Net Income Attributable to Kellogg
Quarter ended | ||||||||
(millions) | April 4, 2015 | March 29, 2014 | ||||||
Reported Net Income Attributable to Kellogg | $ | 227 | $ | 406 | ||||
Mark-to-market(a) | (46 | ) | 80 | |||||
Project K(b) | (47 | ) | (36 | ) | ||||
Other costs(c) | (25 | ) | — | |||||
Integration costs(d) | (6 | ) | (5 | ) | ||||
|
|
|
| |||||
Comparable Net Income Attributable to Kellogg(e) | $ | 351 | $ | 367 | ||||
Foreign currency impact | (19 | ) | — | |||||
|
|
|
| |||||
Currency-Neutral Comparable Net Income Attributable to Kellogg(f) | $ | 370 | $ | 367 | ||||
|
|
|
|
(a) | Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-to-market adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are recognized in the quarter they occur. |
(b) | Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. 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. |
(c) | During the quarter ended April 4, 2015, the Company has determined that certain assets related to a portion of the business may not be fully recoverable and has recorded a non-cash charge within other income (expense). |
(d) | Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions. |
(e) | Comparable Net Income Attributable to Kellogg are non-GAAP measures which are reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
(f) | Currency-Neutral Comparable Net Income Attributable to Kellogg are non-GAAP measures which are reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
- more -
- 18 -
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts - Reported EPS to Currency-Neutral
Comparable EPS
Quarter ended | ||||||||
April 4, 2015 | March 29, 2014 | |||||||
Reported EPS | $ | 0.64 | $ | 1.12 | ||||
Mark-to-market(a) | (0.13 | ) | 0.22 | |||||
Project K(b) | (0.13 | ) | (0.10 | ) | ||||
Other costs(c) | (0.07 | ) | — | |||||
Integration impact(d) | (0.01 | ) | (0.01 | ) | ||||
|
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|
| |||||
Comparable EPS(e) | $ | 0.98 | $ | 1.01 | ||||
Foreign currency impact | (0.06 | ) | — | |||||
|
|
|
| |||||
Currency-Neutral Comparable EPS(f) | $ | 1.04 | $ | 1.01 | ||||
|
|
|
|
(a) | Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-to-market adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are recognized in the quarter they occur. |
(b) | Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. 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. |
(c) | During the quarter ended April 4, 2015, the Company has determined that certain assets related to a portion of the business may not be fully recoverable and has recorded a non-cash charge within other income (expense). |
(d) | Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions. |
(e) | Comparable EPS is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance. |
(f) | Currency-Neutral Comparable EPS is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measure provides increased transparency and assists in understanding our comparable operating performance. |
- more -
- 19 -
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts - Reported Effective Tax Rate
to Currency-Neutral Comparable Effective Tax Rate
Quarter ended | ||||||||
April 4, 2015 | March 29, 2014 | |||||||
Reported Effective Tax Rate | 25.1 | % | 28.9 | % | ||||
Mark-to-market(a) | -1.0 | % | 0.5 | % | ||||
Project K(b) | -0.8 | % | -0.4 | % | ||||
Other costs(c) | 1.4 | % | 0.0 | % | ||||
Integration impact | 0.1 | % | 0.0 | % | ||||
|
|
|
| |||||
Comparable Effective Tax Rate(d) | 25.4 | % | 28.8 | % | ||||
Foreign currency impact | 0.7 | % | 0.0 | % | ||||
|
|
|
| |||||
Currency-Neutral Comparable Effective Tax Rate(e) | 24.7 | % | 28.8 | % | ||||
|
|
|
|
(a) | Mark-to-market adjustments, in general, were incurred in jurisdictions with tax rates higher than our reported effective tax rate during the quarters ended April 4, 2015 and March 29, 2014. |
(b) | Costs incurred related to the execution of restructuring and cost reduction activities, in general, were incurred in jurisdictions with tax rates higher than our effective tax rate during the quarters ended April 4, 2015 and March 29, 2014. |
(c) | During the quarter ended April 4, 2015, the Company has determined that certain assets related to a portion of the business may not be fully recoverable and has recorded a non-cash charge within other income (expense). |
(d) | Comparable Effective Tax Rate is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. |
(e) | Currency-Neutral Comparable Effective Tax Rate is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. |
- more -
- 20 -
Kellogg Company and Subsidiaries
RECAST OPERATING SEGMENT DATA
2014 (millions) | Quarter ended | Year-to-date period ended | ||||||||||||||||||||||||||
March 29, 2014 | June 28, 2014 | September 27, 2014 | January 3, 2015 | June 28, 2014 | September 27, 2014 | January 3, 2015 | ||||||||||||||||||||||
Net Sales (Recast*) | ||||||||||||||||||||||||||||
U.S. Morning Foods | $ | 799 | $ | 759 | $ | 782 | $ | 768 | $ | 1,558 | $ | 2,340 | $ | 3,108 | ||||||||||||||
U.S. Snacks | 864 | 851 | 807 | 807 | 1,715 | 2,522 | 3,329 | |||||||||||||||||||||
U.S. Specialty | 372 | 276 | 270 | 280 | 648 | 918 | 1,198 | |||||||||||||||||||||
North America Other | 482 | 464 | 470 | 448 | 946 | 1,416 | 1,864 | |||||||||||||||||||||
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North America Total | 2,517 | 2,350 | 2,329 | 2,303 | 4,867 | 7,196 | 9,499 | |||||||||||||||||||||
Europe | 705 | 767 | 720 | 677 | 1,472 | 2,192 | 2,869 | |||||||||||||||||||||
Latin America | 278 | 320 | 320 | 287 | 598 | 918 | 1,205 | |||||||||||||||||||||
Asia Pacific | 242 | 248 | 270 | 247 | 490 | 760 | 1,007 | |||||||||||||||||||||
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Consolidated | $ | 3,742 | $ | 3,685 | $ | 3,639 | $ | 3,514 | $ | 7,427 | $ | 11,066 | $ | 14,580 | ||||||||||||||
Operating Profit (Recast*) | ||||||||||||||||||||||||||||
U.S. Morning Foods | $ | 126 | $ | 137 | $ | 115 | $ | 101 | $ | 263 | $ | 378 | $ | 479 | ||||||||||||||
U.S. Snacks | 86 | 124 | 59 | 95 | 210 | 269 | 364 | |||||||||||||||||||||
U.S. Specialty | 87 | 63 | 59 | 57 | 150 | 209 | 266 | |||||||||||||||||||||
North America Other | 83 | 74 | 69 | 68 | 157 | 226 | 294 | |||||||||||||||||||||
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North America Total | 382 | 398 | 302 | 321 | 780 | 1,082 | 1,403 | |||||||||||||||||||||
Europe | 65 | 50 | 59 | 58 | 115 | 174 | 232 | |||||||||||||||||||||
Latin America | 48 | 47 | 50 | 24 | 95 | 145 | 169 | |||||||||||||||||||||
Asia Pacific | 16 | 5 | 18 | 14 | 21 | 39 | 53 | |||||||||||||||||||||
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Total Reportable Segments | 511 | 500 | 429 | 417 | 1,011 | 1,440 | 1,857 | |||||||||||||||||||||
Corporate | 103 | (33 | ) | (64 | ) | (839 | ) | 70 | 6 | (833 | ) | |||||||||||||||||
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Consolidated | $ | 614 | $ | 467 | $ | 365 | $ | (422 | ) | $ | 1,081 | $ | 1,446 | $ | 1,024 |
* | During the first quarter of 2015, the Kashi operating segment was established and is included in North America Other. The Kashi financial results that were previously included in the U.S. Morning Foods, U.S. Snacks, and U.S. Frozen Foods operating segments are now reported in the Kashi operating segment which is reported in North America Other. Other business unit re-organizations occurred between Europe and Asia Pacific. |
2014 (millions) | Quarter ended | Year-to-date period ended | ||||||||||||||||||||||||||
March 29, 2014 | June 28, 2014 | September 27, 2014 | January 3, 2015 | June 28, 2014 | September 27, 2014 | January 3, 2015 | ||||||||||||||||||||||
Net Sales (As originally reported) | ||||||||||||||||||||||||||||
U.S. Morning Foods | $ | 861 | $ | 820 | $ | 841 | $ | 816 | $ | 1,681 | $ | 2,522 | $ | 3,338 | ||||||||||||||
U.S. Snacks | 903 | 893 | 849 | 850 | 1,796 | 2,645 | 3,495 | |||||||||||||||||||||
U.S. Specialty | 372 | 276 | 270 | 280 | 648 | 918 | 1,198 | |||||||||||||||||||||
North America Other | 381 | 361 | 369 | 357 | 742 | 1,111 | 1,468 | |||||||||||||||||||||
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North America Total | 2,517 | 2,350 | 2,329 | 2,303 | 4,867 | 7,196 | 9,499 | |||||||||||||||||||||
Europe | 708 | 772 | 726 | 681 | 1,480 | 2,206 | 2,887 | |||||||||||||||||||||
Latin America | 278 | 320 | 320 | 287 | 598 | 918 | 1,205 | |||||||||||||||||||||
Asia Pacific | 239 | 243 | 264 | 243 | 482 | 746 | 989 | |||||||||||||||||||||
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Consolidated | $ | 3,742 | $ | 3,685 | $ | 3,639 | $ | 3,514 | $ | 7,427 | $ | 11,066 | $ | 14,580 | ||||||||||||||
Operating Profit (As originally reported) | ||||||||||||||||||||||||||||
U.S. Morning Foods | $ | 128 | $ | 143 | $ | 118 | $ | 101 | $ | 271 | $ | 389 | $ | 490 | ||||||||||||||
U.S. Snacks | 95 | 130 | 67 | 103 | 225 | 292 | 395 | |||||||||||||||||||||
U.S. Specialty | 87 | 63 | 59 | 57 | 150 | 209 | 266 | |||||||||||||||||||||
North America Other | 72 | 62 | 58 | 60 | 134 | 192 | 252 | |||||||||||||||||||||
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North America Total | 382 | 398 | 302 | 321 | 780 | 1,082 | 1,403 | |||||||||||||||||||||
Europe | 67 | 53 | 61 | 59 | 120 | 181 | 240 | |||||||||||||||||||||
Latin America | 48 | 47 | 50 | 24 | 95 | 145 | 169 | |||||||||||||||||||||
Asia Pacific | 14 | 2 | 16 | 13 | 16 | 32 | 45 | |||||||||||||||||||||
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Total Reportable Segments | 511 | 500 | 429 | 417 | 1,011 | 1,440 | 1,857 | |||||||||||||||||||||
Corporate | 103 | (33 | ) | (64 | ) | (839 | ) | 70 | 6 | (833 | ) | |||||||||||||||||
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Consolidated | $ | 614 | $ | 467 | $ | 365 | $ | (422 | ) | $ | 1,081 | $ | 1,446 | $ | 1,024 |
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