Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 29, 2016 | Jul. 04, 2015 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 2, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Trading Symbol | K | ||
Entity Registrant Name | KELLOGG CO | ||
Entity Central Index Key | 55,067 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 350,257,015 | ||
Entity Public Float | $ 17.7 |
Consolidated Statement of Incom
Consolidated Statement of Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 13,525 | $ 14,580 | $ 14,792 |
Cost of goods sold | 8,844 | 9,517 | 8,689 |
Selling, general and administrative expense | 3,590 | 4,039 | 3,266 |
Operating profit | 1,091 | 1,024 | 2,837 |
Interest expense | 227 | 209 | 235 |
Other income (expense), net | (91) | 10 | 4 |
Income before income taxes | 773 | 825 | 2,606 |
Income taxes | 159 | 186 | 792 |
Earnings (loss) from unconsolidated entities | 0 | (6) | (6) |
Net income | 614 | 633 | 1,808 |
Net income (loss) attributable to noncontrolling interests | 0 | 1 | 1 |
Net income attributable to Kellogg Company | $ 614 | $ 632 | $ 1,807 |
Basic | $ 1.74 | $ 1.76 | $ 4.98 |
Diluted | 1.72 | 1.75 | 4.94 |
Dividends per share | $ 1.98 | $ 1.90 | $ 1.80 |
Comprehensive Income Statement
Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 614 | $ 633 | $ 1,808 |
Other comprehensive income (loss), pre-tax: | |||
Foreign currency translation adjustment before tax | (170) | (231) | (24) |
Cash flow hedges, pre-tax: | |||
Unrealized gain (loss) on cash flow hedges, pre-tax | 8 | (35) | 11 |
Reclassifications to net income, pre-tax | (23) | (10) | (6) |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | |||
Net experience gain (loss) | 0 | (8) | 17 |
Prior service credit (cost) | 63 | 10 | 9 |
Postretirement and postemployment benefits reclassification to net income, pre-tax: | |||
Net experience loss, pre-tax | 3 | 3 | 5 |
Prior service cost, pre-tax | 9 | 10 | 13 |
Other comprehensive income (loss), pre-tax | (110) | (261) | 25 |
Other comprehensive income (loss), tax (expense) benefit: | |||
Foreign currency translation adjustments tax (expense) benefit | (26) | (32) | 0 |
Cash flow hedges, tax (expense) benefit: | |||
Unrealized gain (loss) on cash flow hedges, tax (expense) benefit | (3) | 18 | (1) |
Reclassifications to net income, tax (expense) benefit | 3 | 2 | 0 |
Postretirement and postemployment benefit amounts arising during the period, tax (expense) benefit: | |||
Net experience gain (loss), tax (expense) benefit | 0 | 3 | (6) |
Prior service credit (cost), tax (expense) benefit | (24) | (3) | (2) |
Postretirement and postemployment benefits reclassification to net income, tax (expense) benefit: | |||
Net experience loss, tax (expense) benefit | (1) | (1) | (2) |
Prior service cost, tax (expense) benefit | (3) | (3) | (4) |
Other comprehensive income (loss), tax (expense) benefit | (54) | (16) | (15) |
Other comprehensive income (loss), after-tax | |||
Foreign currency translation adjustments after tax | (196) | (263) | (24) |
Cash flow hedges, after-tax: | |||
Unrealized gain (loss) on cash flow hedges, after-tax | 5 | (17) | 10 |
Reclassification to net income, after-tax | (20) | (8) | (6) |
Postretirement and postemployment benefit amounts arising during the period, after-tax | |||
Net experience gain (loss), after tax | 0 | (5) | 11 |
Prior service credit (cost), after-tax | 39 | 7 | 7 |
Postretirement and postemployment benefits reclassification to net income, after-tax | |||
Net experience loss, after-tax | 2 | 2 | 3 |
Prior service cost, after-tax | 6 | 7 | 9 |
Other comprehensive income (loss) | (164) | (277) | 10 |
Comprehensive income | 450 | 356 | 1,818 |
Net income (loss) attributable to noncontrolling interests | 0 | 1 | 1 |
Other comprehensive income (loss) attributable to noncontrolling interests | (1) | 0 | 0 |
Comprehensive income attributable to Kellogg Company | $ 451 | $ 355 | $ 1,817 |
Consolidated Balance Sheet Stat
Consolidated Balance Sheet Statement - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 251 | $ 443 |
Accounts receivable, net | 1,344 | 1,276 |
Inventories | 1,250 | 1,279 |
Other current assets | 391 | 342 |
Total current assets | 3,236 | 3,340 |
Property, net | 3,621 | 3,769 |
Goodwill | 4,968 | 4,971 |
Other intangibles, net | 2,268 | 2,295 |
Investment in unconsolidated entities | 456 | 1 |
Other assets | 716 | 777 |
Total assets | 15,265 | 15,153 |
Liabilities, Current [Abstract] | ||
Current maturities of long-term debt | 1,266 | 607 |
Notes payable | 1,204 | 828 |
Accounts payable | 1,907 | 1,528 |
Other current liabilities | 1,362 | 1,401 |
Total current liabilities | 5,739 | 4,364 |
Long-term debt | 5,289 | 5,935 |
Deferred income taxes | 685 | 726 |
Pension liability | 946 | 777 |
Other liabilities | 468 | 500 |
Commitments and contingencies | 0 | 0 |
Equity [Abstract] | ||
Common stock, $.25 par value, 1,000,000,000 shares authorized Issued: 420,315,589 shares in 2015 and 420,125,937 shares in 2014 | 105 | 105 |
Capital in excess of par value | 745 | 678 |
Retained earnings | 6,597 | 6,689 |
Treasury stock, at cost 70,291,514 shares in 2015 and 64,123,181 shares in 2014 | (3,943) | (3,470) |
Accumulated other comprehensive income (loss) | (1,376) | (1,213) |
Total Kellogg Company equity | 2,128 | 2,789 |
Noncontrolling interests | 10 | 62 |
Total equity | 2,138 | 2,851 |
Total liabilities and equity | $ 15,265 | $ 15,153 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) Consolidated Balance Sheet - $ / shares | Jan. 02, 2016 | Jan. 03, 2015 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.25 | $ 0.25 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 420,315,589 | 420,125,937 |
Treasury Stock, Shares | 70,291,514 | 64,123,181 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock | Capital in excess of par value | Retained earnings | Treasury stock | Accumulated other comprehensive income (loss) | Total Kellogg Company equity | Non- controlling interests | Total comprehensive income (loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | $ 2,404 | ||||||||
Balance, in shares at Dec. 29, 2012 | 420 | 58 | |||||||
Balance at Dec. 29, 2012 | $ 2,465 | $ 105 | $ 573 | $ 5,615 | $ (2,943) | $ (946) | $ 61 | $ 1,021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock repurchases (in shares) | 9 | 9 | |||||||
Common stock repurchases | $ (544) | $ (544) | (544) | ||||||
Net income | 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 (in shares) | (10) | ||||||||
Stock options exercised and other | 493 | 25 | (20) | $ 488 | 493 | ||||
Balance, in shares at Dec. 28, 2013 | 420 | 57 | |||||||
Balance at Dec. 28, 2013 | $ 3,607 | $ 105 | 626 | 6,749 | $ (2,999) | (936) | 62 | 1,818 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | 3,545 | ||||||||
Common stock repurchases (in shares) | 11 | 11 | |||||||
Common stock repurchases | $ (690) | $ (690) | (690) | ||||||
Net income | 633 | 632 | 632 | 1 | 633 | ||||
Dividends | (681) | (680) | (680) | (1) | |||||
Other comprehensive income (loss) | (277) | (277) | (277) | (277) | |||||
Stock compensation | 29 | 29 | 29 | ||||||
Stock options exercised and other (in shares) | (4) | ||||||||
Stock options exercised and other | 230 | 23 | (12) | $ 219 | 230 | ||||
Balance, in shares at Jan. 03, 2015 | 420 | 64 | |||||||
Balance at Jan. 03, 2015 | 2,851 | $ 105 | 678 | 6,689 | $ (3,470) | (1,213) | 62 | 356 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | $ 2,789 | 2,789 | |||||||
Common stock repurchases (in shares) | 11 | 11 | |||||||
Common stock repurchases | $ (731) | $ (731) | (731) | ||||||
Acquisition of noncontrolling interest | 7 | 7 | |||||||
VIE deconsolidation | (58) | $ (58) | |||||||
Net income | 614 | 614 | 614 | 614 | |||||
Dividends | (700) | (700) | (700) | ||||||
Other comprehensive income (loss) | (164) | (163) | (163) | $ (1) | (164) | ||||
Stock compensation | 51 | 51 | 51 | ||||||
Stock options exercised and other (in shares) | (5) | ||||||||
Stock options exercised and other | 268 | 16 | (6) | $ 258 | 268 | ||||
Balance, in shares at Jan. 02, 2016 | 420 | 70 | |||||||
Balance at Jan. 02, 2016 | 2,138 | $ 105 | $ 745 | $ 6,597 | $ (3,943) | $ (1,376) | $ 10 | $ 450 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stockholders' Equity Attributable to Parent | $ 2,128 | $ 2,128 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | ||
Statement of Cash Flows [Abstract] | ||||
Net income | $ 614 | $ 633 | $ 1,808 | |
Depreciation and amortization | [1] | 534 | 503 | 532 |
Postretirement benefit plan (income) expense | 320 | 803 | (1,078) | |
Deferred income taxes | (169) | (254) | 317 | |
Stock compensation | 51 | 37 | 34 | |
Venezuela remeasurement | 169 | 0 | 15 | |
VIE deconsolidation | (49) | 0 | 0 | |
Other | (13) | (125) | (15) | |
Postretirement benefit plan contributions | (33) | (53) | (48) | |
Trade receivables | (127) | 131 | (50) | |
Inventories | (42) | (30) | 112 | |
Accounts payable | 427 | 96 | 31 | |
Accrued income taxes | 29 | 87 | 4 | |
Accrued interest expense | 5 | (2) | (9) | |
Accrued and prepaid advertising, promotion and trade allowances | 7 | (21) | (32) | |
Accrued salaries and wages | 20 | (7) | 61 | |
All other current assets and liabilities | (52) | (5) | 125 | |
Net cash provided by (used in) operating activities | 1,691 | 1,793 | 1,807 | |
Additions to properties | (553) | (582) | (637) | |
Acquisitions, net of cash acquired | (161) | 0 | 0 | |
Investments in unconsolidated entities | (456) | (6) | (6) | |
Other | 43 | 15 | 2 | |
Net cash provided by (used in) investing activities | (1,127) | (573) | (641) | |
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days | 443 | 183 | (524) | |
Issuances of notes payable, with maturities greater than 90 days | 214 | 1,030 | 640 | |
Reductions of notes payable, with maturities greater than 90 days | (283) | (1,124) | (442) | |
Issuances of long-term debt | 696 | 952 | 645 | |
Reductions of long-term debt | (606) | (960) | (762) | |
Net issuances of common stock | 261 | 217 | 475 | |
Common stock repurchases | (731) | (690) | (544) | |
Cash dividends | (700) | (680) | (653) | |
Other | 0 | 9 | 24 | |
Net cash provided by (used in) financing activities | (706) | (1,063) | (1,141) | |
Effect of exchange rate changes on cash and cash equivalents | (50) | 13 | (33) | |
Increase (decrease) in cash and cash equivalents | (192) | 170 | (8) | |
Cash and cash equivalents at beginning of period | 443 | 273 | 281 | |
Cash and cash equivalents at end of period | 251 | 443 | 273 | |
Interest paid | 228 | 209 | 234 | |
Income taxes paid | 337 | 414 | 426 | |
Additions to properties included in accounts payable | $ 147 | $ 136 | $ 135 | |
[1] | Includes asset impairment charges as discussed in Note 13. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of presentation The consolidated financial statements include the accounts of the Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest and the accounts of the variable interest entities (VIEs) of which Kellogg Company is the primary beneficiary (Kellogg or the Company). The Company continually evaluates its involvement with VIEs to determine whether it has variable interests and is the primary beneficiary of the VIE. When these criteria are met, the Company is required to consolidate the VIE. The Company’s share of earnings or losses of nonconsolidated affiliates is included in its consolidated operating results using the equity method of accounting when it is able to exercise significant influence over the operating and financial decisions of the affiliate. The Company uses the cost method of accounting if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. Intercompany balances and transactions are eliminated. The Company’s fiscal year normally ends on the Saturday closest to December 31 and as a result, a 53rd week is added approximately every sixth year. The Company’s 2015 and 2013 fiscal years each contained 52 weeks and ended on January 2, 2016 and December 28, 2013 , respectively. The Company’s 2014 fiscal year ended on January 3, 2015 , and included a 53 rd week. While quarters normally consist of 13-week periods, the fourth quarter of fiscal 2014 included a 14 th week. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. Cash and cash equivalents Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. Accounts receivable Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts and prompt payment discounts. Trade receivables do not bear interest. The allowance for doubtful accounts represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances and other specific account data. Account balances are written off against the allowance when management determines the receivable is uncollectible. The Company does not have off-balance sheet credit exposure related to its customers. Inventories Inventories are valued at the lower of cost or market. Cost is determined on an average cost basis. Property The Company’s property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods, where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 5 - 30 ; office equipment 4 - 5 ; computer equipment and capitalized software 3 - 7 ; building components 15 - 25 ; building structures 30 - 50 . Cost includes interest associated with significant capital projects. Plant and equipment are reviewed for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include an extended period of idleness or a plan of disposal. Assets to be disposed of at a future date are depreciated over the remaining period of use. Assets to be sold are written down to realizable value at the time the assets are being actively marketed for sale and a sale is expected to occur within one year. As of year-end 2015 and 2014 , the carrying value of assets held for sale was insignificant. Goodwill and other intangible assets Goodwill and indefinite-lived intangibles are not amortized, but are tested at least annually for impairment of value and whenever events or changes in circumstances indicate the carrying amount of the asset may be impaired. An intangible asset with a finite life is amortized on a straight-line basis over the estimated useful life. For the goodwill impairment test, the fair value of the reporting units are estimated based on market multiples. This approach employs market multiples based on earnings before interest, taxes, depreciation and amortization and earnings for companies that are comparable to the Company’s reporting units. In the event the fair value determined using the market multiple approach is close to carrying value, the Company may supplement the fair value determination using discounted cash flows. The assumptions used for the impairment test are consistent with those utilized by a market participant performing similar valuations for the Company’s reporting units. Similarly, impairment testing of other intangible assets requires a comparison of carrying value to fair value of that particular asset. Fair values of non-goodwill intangible assets are based primarily on projections of future cash flows to be generated from that asset. For instance, cash flows related to a particular trademark would be based on a projected royalty stream attributable to branded product sales, discounted at rates consistent with rates used by market participants. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. 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 payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal in entering into this agreement is to capture overall supplier savings, in the form of payment terms or vendor funding, created by facilitating suppliers’ ability to sell payment obligations, 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 January 2, 2016 , $501 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $407 million of those payment obligations to participating financial institutions. As of January 3, 2015 , $236 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $184 million of those payment obligations to participating financial institutions. Revenue recognition The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable provisions for discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. Advertising and promotion The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense is classified in selling, general and administrative (SGA) expense. The Company classifies promotional payments to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. The cost of promotional package inserts is recorded in cost of goods sold (COGS). Other types of consumer promotional expenditures are recorded in SGA expense. Research and development The costs of research and development (R&D) are expensed as incurred and are classified in SGA expense. R&D includes expenditures for new product and process innovation, as well as significant technological improvements to existing products and processes. The Company’s R&D expenditures primarily consist of internal salaries, wages, consulting, and supplies attributable to time spent on R&D activities. Other costs include depreciation and maintenance of research facilities and equipment, including assets at manufacturing locations that are temporarily engaged in pilot plant activities. Stock-based compensation The Company uses stock-based compensation, including stock options, restricted stock, restricted stock units, and executive performance shares, to provide long-term performance incentives for its global workforce. The Company classifies pre-tax stock compensation expense principally in SGA expense within its corporate operations. Expense attributable to awards of equity instruments is recorded in capital in excess of par value in the Consolidated Balance Sheet. Certain of the Company’s stock-based compensation plans contain provisions that accelerate vesting of awards upon retirement, disability, or death of eligible employees and directors. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company recognizes compensation cost for stock option awards that have a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Corporate income tax benefits realized upon exercise or vesting of an award in excess of that previously recognized in earnings (“windfall tax benefit”) is recorded in other financing activities in the Consolidated Statement of Cash Flows. Realized windfall tax benefits are credited to capital in excess of par value in the Consolidated Balance Sheet. Realized shortfall tax benefits (amounts which are less than that previously recognized in earnings) are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. The Company currently has sufficient cumulative windfall tax benefits to absorb arising shortfalls, such that earnings were not affected during the periods presented. Correspondingly, the Company includes the impact of pro forma deferred tax assets (i.e., the “as if” windfall or shortfall) for purposes of determining assumed proceeds in the treasury stock calculation of diluted earnings per share. Income taxes The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax-related interest and penalties as interest expense and SGA expense, respectively, on the Consolidated Statement of Income. The current portion of the Company’s unrecognized tax benefits is presented in the Consolidated Balance Sheet in other current assets and other current liabilities, and the amounts expected to be settled after one year are recorded in other assets and other liabilities. Income taxes are provided on the portion of foreign earnings that is expected to be remitted to and taxable in the United States. Derivative Instruments The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in the Consolidated Statement of Income in other income (expense), net (OIE). In the Consolidated Statement of Cash Flows, settlements of cash flow and fair value hedges are classified as an operating activity; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instrument. Cash flow hedges. Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in other comprehensive income until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive income (loss) (AOCI) to the Consolidated Statement of Income on the same line item as the underlying transaction. Fair value hedges. Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item. Net investment hedges. Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments in AOCI. Derivatives not designated for hedge accounting. Gains and losses on these instruments are recorded in the Consolidated Statement of Income, on the same line item as the underlying hedged item. Other contracts. The Company periodically enters into foreign currency forward contracts and options to reduce volatility in the translation of foreign currency earnings to U.S. dollars. Gains and losses on these instruments are recorded in OIE, generally reducing the exposure to translation volatility during a full-year period. Foreign currency exchange risk. The Company is exposed to fluctuations in foreign currency cash flows related primarily to third-party purchases, intercompany transactions and when applicable, nonfunctional currency denominated third-party debt. The Company is also exposed to fluctuations in the value of foreign currency investments in subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation of foreign currency denominated earnings to U.S. dollars. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contracts, options, and currency swaps to reduce fluctuations in long or short currency positions. Forward contracts and options are generally less than 18 months duration. Currency swap agreements are established in conjunction with the term of underlying debt issues. For foreign currency cash flow and fair value hedges, the assessment of effectiveness is generally based on changes in spot rates. Changes in time value are reported in OIE. Interest rate risk. The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing and future issuances of variable rate debt. The Company periodically uses interest rate swaps, including forward-starting swaps, to reduce interest rate volatility and funding costs associated with certain debt issues, and to achieve a desired proportion of variable versus fixed rate debt, based on current and projected market conditions. Fixed-to-variable interest rate swaps are accounted for as fair value hedges and the assessment of effectiveness is based on changes in the fair value of the underlying debt, using incremental borrowing rates currently available on loans with similar terms and maturities. Price risk. The Company is exposed to price fluctuations primarily as a result of anticipated purchases of raw and packaging materials, fuel, and energy. The Company has historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months. Certain commodity contracts are accounted for as cash flow hedges, while others are marked to market through earnings. The assessment of effectiveness for exchange-traded instruments is based on changes in futures prices. The assessment of effectiveness for over-the-counter transactions is based on changes in designated indices. Pension benefits, nonpension postretirement and postemployment benefits The Company sponsors a number of U.S. and foreign plans to provide pension, health care, and other welfare benefits to retired employees, as well as salary continuance, severance, and long-term disability to former or inactive employees. The recognition of benefit expense is based on actuarial assumptions, such as discount rate, long-term rate of compensation increase, long-term rate of return on plan assets and health care cost trend rate, and is reported in COGS and SGA expense on the Consolidated Statement of Income. Postemployment benefits. The Company recognizes an obligation for postemployment benefit plans that vest or accumulate with service. Obligations associated with the Company’s postemployment benefit plans, which are unfunded, are included in other current liabilities and other liabilities on the Consolidated Balance Sheet. All gains and losses are recognized over the average remaining service period of active plan participants. Postemployment benefits that do not vest or accumulate with service or benefits to employees in excess of those specified in the respective plans are expensed as incurred. Pension and nonpension postretirement benefits. The Company recognizes actuarial gains and losses in operating results in the year in which they occur. Experience gains and losses are recognized annually as of the measurement date, which is the Company’s fiscal year-end, or when remeasurement is otherwise required under generally accepted accounting principles. The Company uses the fair value of plan assets to calculate the expected return on plan assets. Reportable segments are allocated service cost and amortization of prior service cost. All other components of pension and postretirement benefit expense, including interest cost, expected return on assets, and experience gains and losses are considered unallocated corporate costs and are not included in the measure of reportable segment operating results. See Note 17 for more information on reportable segments. Management reviews the Company’s expected long-term rates of return annually; however, the benefit trust investment performance for one particular year does not, by itself, significantly influence this evaluation. The expected rates of return are generally not revised provided these rates fall between the 25th and 75th percentile of expected long-term returns, as determined by the Company’s modeling process. For defined benefit pension and postretirement plans, the Company records the net overfunded or underfunded position as a pension asset or pension liability on the Consolidated Balance Sheet. New accounting standards Practical expedient for the measurement date of an employer's defined benefit obligation and plan assets. In April 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to provide a practical expedient for the measurement date of an employer’s defined benefit obligation and plan assets. For an entity with a fiscal year-end that does not coincide with a month-end, the amendments in this Update provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently to all plans from year to year. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Entities should apply the new guidance on a prospective basis. The Company early adopted the updated standard when measuring the fair value of plan assets at the end of its 2015 fiscal year with no impact to the Consolidated Financial Statements. Presentation of an unrec ognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. In July 2013, the FASB issued an 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 in 2014 with no significant impact to the Consolidated Financial Statements. Accounting standards to be adopted in future periods Recognition and measurement of financial assets and liabilities. In January 2016, the FASB issued an ASU which primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption can be elected for all financial statements of fiscal years and interim periods that have not yet been issued or that have not yet been made available for issuance. Entities should apply the update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company will adopt the updated standard in the first quarter of 2018. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Balance sheet classification of deferred taxes. In November 2015, the FASB issued an ASU to simplify the presentation of deferred income taxes. The ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Entities should apply the new guidance either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating when it will adopt the updated standard and whether to use the prospective or retrospective method. The year-end 2015 balance for current deferred tax assets and liabilities was $227 million and $(9) million , respectively. Please see Note 12 for more information on the Company’s deferred tax assets and liabilities. Simplifying the accounting for measurement-period adjustments. In September 2015, the FASB issued an ASU to simplify the accounting for measurement-period adjustments for items in a business combination. The ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Entities should apply the new guidance prospectively to adjustments to provisional amounts that occur after the effective date of the ASU with earlier application permitted for financial statements that have not been issued. The Company will adopt the updated standard in the first quarter of 2016. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Simplifying the presentation of debt issuance costs. In April 2015, the FASB issued an ASU to simplify the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Entities should apply the new guidance on a retrospective basis. The Company will adopt the updated standard in the first quarter of 2016. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Customer's accounting for fees paid in a cloud computing arrangement. In April 2015, the FASB issued an ASU to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Entities should apply the new guidance either; 1) prospectively to all arrangements entered into or materially modified after the effective date or 2) retrospectively. The Company will adopt the updated standard prospectively in the first quarter of 2016. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Revenue from contracts with customers. In May 2014, the FASB issued an 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 to 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. When the ASU was originally issued it was effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption was not permitted. On July 9, 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The updated standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Entities will be permitted to adopt the new revenue standard early, but not before the original effective date. 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 2018. 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 A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 02, 2016 | |
Acquisitions, Goodwill and Other Intangibles [Abstract] | |
Acquisitions, Goodwill and Other Intangibles [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Bisco Misr and Mass Foods acquisitions In January 2015, the Company completed its acquisition of a majority interest in Bisco Misr, the number one packaged biscuits company in Egypt, for $125 million , or $117 million net of cash and cash equivalents acquired. In October 2015, the Company acquired additional ownership in Bisco Misr through payment of $13 million to non-controlling interests, which is reported as financing activity on the Consolidated Statement of Cash Flows. As of January 2, 2016, the Company owns greater than 95% of Bisco Misr outstanding shares. In September 2015, the Company completed the acquisition of Mass Foods, Egypt's leading cereal company, for $46 million , or $44 million , net of cash and cash equivalents acquired, subject to certain purchase price adjustments. The acquisitions were accounted for under the purchase method and were financed through cash on hand. The assets and liabilities of Bisco Misr and Mass Foods are included in the Consolidated Balance Sheet as of January 2, 2016 and the results of their operations subsequent to the acquisition date, which are immaterial, are included in the Consolidated Statement of Income within the Europe operating segment. In addition, the pro-forma effect of these acquisitions, if the acquisitions had been completed at the beginning of 2014, would have been immaterial. The acquired assets and assumed liabilities include the following: (millions) January 18, Current assets $ 21 Property 90 Goodwill 81 Intangible assets and other 46 Current liabilities (24 ) Other non current liabilities, primarily deferred taxes (33 ) Non-controlling interests (20 ) $ 161 Goodwill, which is not expected to be deductible for statutory tax purposes, is calculated as the excess of the purchase price over the fair value of the net assets recognized. The goodwill recorded primarily reflects the value of providing an established platform to leverage the Company’s existing brands in the markets served by Bisco Misr and Mass Foods as well as any intangible assets that do not qualify for separate recognition. The allocation of purchase price for Bisco Misr was finalized in the 4th quarter of 2015. The allocation of the purchase price of Mass Foods is subject to revision when appraisals are finalized, which is expected to occur no later than the third quarter of 2016. Changes in the carrying amount of goodwill are presented in the following table. Changes in the carrying amount of goodwill (millions) U.S. Morning Foods U.S. Snacks U.S. Specialty North America Other Europe Latin America Asia Pacific Consoli- dated December 28, 2013* $ 131 $ 3,589 $ 82 $ 470 $ 452 $ 89 $ 238 $ 5,051 Currency translation adjustment — — — (5 ) (63 ) (6 ) (6 ) (80 ) January 3, 2015* $ 131 $ 3,589 $ 82 $ 465 $ 389 $ 83 $ 232 $ 4,971 Additions — — — — 81 — — 81 VIE deconsolidation — (21 ) — — — — — (21 ) Currency translation adjustment — — — (9 ) (39 ) (7 ) (8 ) (63 ) January 2, 2016 $ 131 $ 3,568 $ 82 $ 456 $ 431 $ 76 $ 224 $ 4,968 * In conjunction with the establishment of the Kashi operating segment, included within the North America Other reportable segment, certain intangible assets were reallocated. All prior period balances were updated to conform with current presentation. Intangible assets subject to amortization (millions) Gross carrying amount U.S. Morning Foods U.S. Snacks U.S. Specialty North America Other Europe Latin America Asia Pacific Consoli- dated December 28, 2013 $ 8 $ 65 $ — $ 5 $ 42 $ 6 $ 10 $ 136 Currency translation adjustment — — — — (4 ) — — (4 ) January 3, 2015 $ 8 $ 65 $ — $ 5 $ 38 $ 6 $ 10 $ 132 Additions — — — — 9 — — 9 VIE deconsolidation — (23 ) — — — — — (23 ) Currency translation adjustment — — — — (2 ) — — (2 ) January 2, 2016 $ 8 $ 42 $ — $ 5 $ 45 $ 6 $ 10 $ 116 Accumulated Amortization December 28, 2013 $ 8 $ 11 $ — $ 4 $ 4 $ 6 $ 1 $ 34 Amortization — 5 — — 3 — 1 9 January 3, 2015 $ 8 $ 16 $ — $ 4 $ 7 $ 6 $ 2 $ 43 VIE deconsolidation — (4 ) — — — — — (4 ) Amortization (a) — 4 — — 4 — — 8 January 2, 2016 $ 8 $ 16 $ — $ 4 $ 11 $ 6 $ 2 $ 47 Intangible assets subject to amortization, net December 28, 2013 $ — $ 54 $ — $ 1 $ 38 $ — $ 9 $ 102 Amortization — (5 ) — — (3 ) — (1 ) (9 ) Currency translation adjustment — — — — (4 ) — — (4 ) January 3, 2015 $ — $ 49 $ — $ 1 $ 31 $ — $ 8 $ 89 Additions — — — — 9 — — 9 VIE deconsolidation — (19 ) — — — — — (19 ) Amortization (a) — (4 ) — — (4 ) — — (8 ) Currency translation adjustment — — — — (2 ) — — (2 ) January 2, 2016 $ — $ 26 $ — $ 1 $ 34 $ — $ 8 $ 69 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $7 million per year. Intangible assets not subject to amortization (millions) U.S. Morning Foods U.S. Snacks U.S. Specialty North America Other Europe Latin America Asia Pacific Consoli- dated December 28, 2013* $ — $ 1,625 $ — $ 158 $ 482 $ — $ — $ 2,265 Currency translation adjustment — — — — (59 ) — — (59 ) January 3, 2015* $ — $ 1,625 $ — $ 158 $ 423 $ — $ — $ 2,206 Additions — — — — 36 — — 36 Currency translation adjustment — — — — (43 ) — — (43 ) January 2, 2016 $ — $ 1,625 $ — $ 158 $ 416 $ — $ — $ 2,199 * In conjunction with the establishment of the Kashi operating segment, included within the North America Other reportable segment, certain intangible assets were reallocated. All prior period balances were updated to conform with current presentation. |
Investment in Unconsolidated En
Investment in Unconsolidated Entities Investment in Unconsolidated Entities | 12 Months Ended |
Jan. 02, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in unconsolidated entities [Text Block] | INVESTMENTS IN UNCONSOLIDATED ENTITIES In September 2015, the Company acquired, for $445 million , a 50% interest in Multipro Singapore Pte. Ltd. (Multipro), a leading distributor of a variety of food products in Nigeria and Ghana and also obtained an option to acquire 24.5% of an affiliated food manufacturing entity under common ownership based on a fixed multiple of future earnings as defined in the agreement (Purchase Option). The amount paid, which was financed with cash on hand and commercial paper borrowings, is subject to purchase price adjustments, including the finalization of Multipro’s 2015 earnings as defined in the agreement. The amount attributable to the Purchase Option of $77 million was recorded at cost and will be monitored for impairment through the exercise period. The Purchase Option becomes exercisable upon the earlier of the entity achieving a minimum level of earnings as defined in the agreement, in which case the Company has a one year exercise period, or 2020. The remaining $368 million paid for the 50% interest in Multipro is accounted for under the equity method of accounting The difference between the amount paid for Multipro and the underlying equity in net assets is primarily attributable to intangible assets, a portion of which will be amortized in future periods, and goodwill. Summarized combined financial information for the Company’s investments in unconsolidated entities is as follows (on a 100% basis): Statement of Operations (since time of investment in millions) Period ended January 2, 2016 Net sales $ 289 Gross profit $ 44 Income before income taxes $ 12 Net income $ 5 Balance sheets January 2, 2016 Current assets $ 78 Non-current assets $ 57 Current liabilities $ (81 ) Non-current liabilities $ (25 ) |
Restructuring and Cost Reductio
Restructuring and Cost Reduction Activities | 12 Months Ended |
Jan. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | 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 5 -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. Project K Project K, a four -year efficiency and effectiveness program, was announced in November 2013 and 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. The Company currently anticipates that the program will result in total pre-tax charges, once all phases are approved and implemented, of $1.2 to $1.4 billion , with after-tax cash costs, including incremental capital expenditures, estimated to be $900 million to $1.1 billion . Based on current estimates and actual charges incurred to date, the Company expects the total project charges will consist of asset-related costs totaling $400 to $450 million which will consist primarily of asset impairments, accelerated depreciation and other exit-related costs; employee-related costs totaling $400 to $450 million which will include severance, pension and other termination benefits; and other costs totaling $400 to $500 million which will consist primarily of charges related to the design and implementation of global business capabilities. A significant portion of other costs are the result of the implementation of global business service centers which are intended to simplify and standardize business support processes. The Company currently expects that total pre-tax charges related to Project K will impact reportable segments as follows: U.S. Morning Foods (approximately 18% ), U.S. Snacks (approximately 13% ), U.S. Specialty (approximately 1% ), North America Other (approximately 10% ), Europe (approximately 17% ), Latin America (approximately 2% ), Asia-Pacific (approximately 6% ), and Corporate (approximately 33% ). Certain costs impacting Corporate relate to additional initiatives to be approved and executed in the future. When these initiatives are fully defined and approved, the Company will update estimated costs by reportable segment as needed. Since inception of Project K, the Company has recognized charges of $817 million that have been attributed to the program. The charges were comprised of $6 million being recorded as a reduction of revenue, $517 million being recorded in COGS and $294 million recorded in SGA. Other Projects In 2015 we initiated the implementation of a zero-based budgeting (ZBB) program in our North America business that is expected to deliver visibility to ongoing annual savings. In support of the ZBB initiative, we incurred pre-tax charges of approximately $12 million in 2015. All Projects During 2015, the Company recorded $323 million of charges associated with all cost reduction initiatives. The charges were comprised of $4 million being recorded as a reduction of revenue, $191 million being recorded in COGS and $128 million recorded in SGA expense. During 2014, the Company recorded $298 million of charges associated with all cost reduction initiatives. The charges were comprised of $2 million million being recorded as a reduction of revenue, $152 million being recorded in COGS and $144 million recorded in SGA expense. The Company recorded $250 million of costs in 2013 associated with cost reduction initiatives. The charges were comprised of $195 million being recorded in COGS and $55 million recorded in SGA expense. The tables below provide the details for the charges incurred during 2015, 2014 and 2013 and program costs to date for all programs currently active as of January 2, 2016. Program costs to date (millions) 2015 2014 2013 January 2, 2016 Employee related costs $ 62 $ 90 $ 114 $ 259 Asset related costs 103 37 10 146 Asset impairment 18 21 70 105 Other costs 140 150 56 319 Total $ 323 $ 298 $ 250 $ 829 Program costs to date (millions) 2015 2014 2013 January 2, 2016 U.S. Morning Foods $ 58 $ 60 $ 109 $ 218 U.S. Snacks 50 57 30 126 U.S. Specialty 5 3 5 11 North America Other 63 18 11 90 Europe 74 80 27 173 Latin America 4 8 5 16 Asia Pacific 13 37 32 74 Corporate 56 35 31 121 Total $ 323 $ 298 $ 250 $ 829 Employee related costs consisted of severance and pension charges. Asset impairments were recorded for fixed assets that were determined to be impaired and were written down to their estimated fair value. See Note 13 for more information. Asset related costs consist primarily of accelerated depreciation. Other costs incurred consist primarily of third-party incremental costs related to the development and implementation of global business capabilities. At January 2, 2016 total project reserves were $88 million , related to severance payments and other costs of which a substantial portion will be paid in 2016 and 2017. The following table provides details for exit cost reserves. (millions) Employee Related Costs Asset Impairment Asset Related Costs Other Costs Total Liability as of December 28, 2013 $ 66 $ — $ — $ 12 $ 78 2014 restructuring charges 90 21 37 150 298 Cash payments (84 ) — (24 ) (148 ) (256 ) Non-cash charges and other 24 (21 ) (13 ) — (10 ) Liability as of January 3, 2015 $ 96 $ — $ — $ 14 $ 110 2015 restructuring charges 62 18 103 140 323 Cash payments (116 ) — (34 ) (121 ) (271 ) Non-cash charges and other 13 (18 ) (69 ) — (74 ) Liability as of January 2, 2016 $ 55 $ — $ — $ 33 $ 88 |
Equity
Equity | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Equity | EQUITY Earnings per share Basic earnings per share is determined by dividing net income attributable to Kellogg Company by the weighted average number of common shares outstanding during the period. Diluted earnings per share is similarly determined, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Dilutive potential common shares consist principally of employee stock options issued by the Company, and to a lesser extent, certain contingently issuable performance shares. Basic earnings per share is reconciled to diluted earnings per share in the following table: (millions, except per share data) Net income attributable to Kellogg Company Average shares outstanding Earnings per share 2015 Basic $ 614 354 $ 1.74 Dilutive potential common shares 2 (0.02 ) Diluted $ 614 356 $ 1.72 2014 Basic $ 632 358 $ 1.76 Dilutive potential common shares 2 (0.01 ) Diluted $ 632 360 $ 1.75 2013 Basic $ 1,807 363 $ 4.98 Dilutive potential common shares 2 (0.04 ) Diluted $ 1,807 365 $ 4.94 The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (in millions): 2015 - 2.7 ; 2014 - 5.0 ; 2013- 5.0 . Stock transactions The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 8 . The number of shares issued during the periods presented was (in millions): 2015– 5 ; 2014– 4 ; 2013– 10 . The Company issued shares totaling less than one million in each of the years presented under Kellogg Direct ™ , a direct stock purchase and dividend reinvestment plan for U.S. shareholders. In April 2013, the Company’s board of directors approved an authorization to repurchase up to $1 billion in shares through April 2014. In February 2014, the Company’s board of directors approved a new authorization to repurchase up to $1.5 billion in shares through December 2015. This authorization supersedes the April 2013 authorization and is intended to allow the Company to repurchase shares to offset issuances for employee benefit programs. In December 2015, the Company's board of directors approved an authorization to repurchase up to $1.5 billion in shares beginning in 2016 through December 2017. In May 2013, the Company entered into an Accelerated Share Repurchase (ASR) Agreement with a financial institution counterparty and paid $355 million for the repurchase of shares during the term of the Agreement which extended through August 2013. During the second quarter of 2013, 4.9 million shares were initially delivered to the Company and accounted for as a reduction to Kellogg Company equity. The transaction was completed during the third quarter, at which time the Company received 0.6 million additional shares. The total number of shares delivered upon settlement of the ASR was based upon the volume weighted average price of the Company’s stock over the term of the agreement. During 2015, the Company repurchased 11 million million shares of common stock for a total of $731 million . During 2014, the Company repurchased 11 million million shares of common stock for a total of $690 million . During 2013, the Company repurchased 9 million shares of common stock at a total cost 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 for all years presented 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. During the year ended January 2, 2016, the Company amended a U.S. postretirement health plan as well as a U.S. pension plan. As a result of the U.S. postretirement health plan amendment, a prior service credit was recognized in other comprehensive income with an offsetting reduction in the accumulated postretirement benefit obligation. The U.S. pension plan amendment increased the Company's pension benefit obligation with an offsetting increase in prior service costs in other comprehensive income. See Notes 9 and 10 for further details. 2015 2014 2013 Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax amount benefit amount amount benefit amount amount benefit amount Net income $ 614 $ 633 $ 1,808 Other comprehensive income: Foreign currency translation adjustments $ (170 ) $ (26 ) (196 ) $ (231 ) $ (32 ) $ (263 ) $ (24 ) — (24 ) Cash flow hedges: Unrealized gain (loss) on cash flow hedges 8 (3 ) 5 (35 ) 18 (17 ) 11 (1 ) 10 Reclassification to net income (23 ) 3 (20 ) (10 ) 2 (8 ) (6 ) — (6 ) Postretirement and postemployment benefits: Amounts arising during the period: Net experience gain (loss) — — — (8 ) 3 (5 ) 17 (6 ) 11 Prior service credit (cost) 63 (24 ) 39 10 (3 ) 7 9 (2 ) 7 Reclassification to net income: Net experience loss 3 (1 ) 2 3 (1 ) 2 5 (2 ) 3 Prior service cost 9 (3 ) 6 10 (3 ) 7 13 (4 ) 9 Other comprehensive income (loss) $ (110 ) $ (54 ) $ (164 ) $ (261 ) $ (16 ) $ (277 ) $ 25 $ (15 ) $ 10 Comprehensive income $ 450 $ 356 $ 1,818 Net income (loss) attributable to noncontrolling interests — 1 1 Other comprehensive income (loss) attributable to noncontrolling interests (1 ) — — Comprehensive income attributable to Kellogg Company $ 451 $ 355 $ 1,817 Reclassifications out of Accumulated Other Comprehensive Income (AOCI) for the year ended January 2, 2016 and January 3, 2015, consisted of the following: Details about AOCI Components Amount reclassified from AOCI Line item impacted within Income Statement (millions) 2015 2014 2013 Gains and losses on cash flow hedges: Foreign currency exchange contracts $ (40 ) $ (5 ) $ (10 ) COGS Foreign currency exchange contracts 2 (3 ) (2 ) SGA Interest rate contracts 3 (9 ) (4 ) Interest expense Commodity contracts 12 7 10 COGS $ (23 ) $ (10 ) $ (6 ) Total before tax 3 2 — Tax (expense) benefit $ (20 ) $ (8 ) $ (6 ) Net of tax Amortization of postretirement and postemployment benefits: Net experience loss $ 3 $ 3 $ 5 (a) Prior service cost 9 10 13 (a) $ 12 $ 13 $ 18 Total before tax (4 ) (4 ) (6 ) Tax (expense) benefit $ 8 $ 9 $ 12 Net of tax Total reclassifications $ (12 ) $ 1 $ 6 Net of tax (a) See Note 9 and Note 10 for further details . Accumulated other comprehensive income (loss) as of January 2, 2016 and January 3, 2015 consisted of the following: (millions) January 2, 2016 January 3, 2015 Foreign currency translation adjustments $ (1,314 ) $ (1,119 ) Cash flow hedges — unrealized net gain (loss) (39 ) (24 ) Postretirement and postemployment benefits: Net experience loss (16 ) (18 ) Prior service cost (7 ) (52 ) Total accumulated other comprehensive income (loss) $ (1,376 ) $ (1,213 ) Noncontrolling interests In December 2012, the Company entered into a series of agreements with a third party including a subordinated loan (VIE Loan) of $44 million which is convertible into approximately 85% of the equity of the entity (VIE). Due to this convertible subordinated loan and other agreements, the Company determined that the entity was a variable interest entity, the Company was the primary beneficiary and the Company consolidated the financial statements of the VIE in the U.S. Snacks operating segment. During 2015, the 2012 Agreements were terminated and the VIE Loan, including related accrued interest and other receivables, were settled, resulting in a charge of $19 million , which was recorded as Other income (expenses) in the year ended January 2, 2016. Upon termination of the 2012 Agreements, the Company was no longer considered the primary beneficiary of the VIE, the VIE was deconsolidated, and the Company derecognized all assets and liabilities of the VIE, including an allocation of a portion of goodwill from the U.S. Snacks operating segment, resulting in a $67 million non-cash gain, which was recorded within SGA expense for the year ended January 2, 2016. |
Leases and Other Commitment
Leases and Other Commitment | 12 Months Ended |
Jan. 02, 2016 | |
Leases [Abstract] | |
Commitments Disclosure [Text Block] | LEASES AND OTHER COMMITMENTS The Company’s leases are generally for equipment and warehouse space. Rent expense on all operating leases was (in millions): 2015- $189 ; 2014- $183 ; 2013- $174 . During 2015, 2014 and 2013, the Company entered into less than $1 million in capital lease agreements. At January 2, 2016, future minimum annual lease commitments under non-cancelable operating and capital leases were as follows: (millions) Operating leases Capital leases 2016 $ 171 $ 2 2017 152 1 2018 119 1 2019 81 — 2020 62 — 2021 and beyond 87 1 Total minimum payments $ 672 $ 5 Amount representing interest — Obligations under capital leases 5 Obligations due within one year (2 ) Long-term obligations under capital leases $ 3 The Company has provided various standard indemnifications in agreements to sell and purchase business assets and lease facilities over the past several years, related primarily to pre-existing tax, environmental, and employee benefit obligations. Certain of these indemnifications are limited by agreement in either amount and/or term and others are unlimited. The Company has also provided various “hold harmless” provisions within certain service type agreements. Because the Company is not currently aware of any actual exposures associated with these indemnifications, management is unable to estimate the maximum potential future payments to be made. At January 2, 2016, the Company had not recorded any liability related to these indemnifications. |
Debt
Debt | 12 Months Ended |
Jan. 02, 2016 | |
Debt [Abstract] | |
Long-term Debt [Text Block] | DEBT The following table presents the components of notes payable at year end January 2, 2016 and January 3, 2015 : (millions) 2015 2014 Principal amount Effective interest rate Principal amount Effective interest rate U.S. commercial paper $ 899 0.45 % $ 681 0.36 % Europe commercial paper 261 0.01 96 0.09 Bank borrowings 44 51 Total $ 1,204 $ 828 The following table presents the components of long-term debt at year end January 2, 2016 and January 3, 2015 : (millions) 2015 2014 (a) 7.45% U.S. Dollar Debentures due 2031 $ 1,090 $ 1,090 (b) 1.25% Euro Notes due 2025 651 — (c) 2.75% U.S. Dollar Notes due 2023 210 210 (d) 3.125% U.S. Dollar Notes due 2022 369 357 (e) 1.75% Euro Notes due 2021 541 597 (f) 4.0% U.S. Dollar Notes due 2020 861 842 (g) 4.15% U.S. Dollar Notes due 2019 514 497 (h) 3.25% U.S. Dollar Notes due 2018 412 410 (i) 2.05% Canadian Dollar Notes due 2017 217 259 (j) 1.75% U.S. Dollar Notes due 2017 400 396 (k) 1.875% U.S. Dollar Notes due 2016 502 504 (l) 4.45% U.S. Dollar Notes due 2016 753 760 (m) 1.125% U.S. Dollar Notes due 2015 — 350 (n) Floating-rate U.S. Dollar Notes due 2015 — 250 Other 35 20 6,555 6,542 Less current maturities (1,266 ) (607 ) Balance at year end $ 5,289 $ 5,935 (a) In March 2001, the Company issued long-term debt instruments, primarily to finance the acquisition of Keebler Foods Company, of which $1.1 billion of thirty -year 7.45% Debentures remain outstanding. The effective interest rate on the Debentures, reflecting issuance discount and hedge settlement, was 7.54% . The Debentures contain standard events of default and covenants, and can be redeemed in whole or in part by the Company at any time at prices determined under a formula (but not less than 100% of the principal amount plus unpaid interest to the redemption date). (b) In March 2015, the Company issued €600 million (approximately $651 million at January 2, 2016 , which reflects the discount and translation adjustments) of ten -year 1.25% Euro Notes due 2025, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.07% . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. (c) In February 2013, the Company issued $400 million of ten -year 2.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including, together with cash on hand, to repay a portion of the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The effective interest rate on these Notes, reflecting issuance discount and hedge settlement, was 2.74% . In March 2014, the Company redeemed $189 million of the Notes. In connection with the debt redemption, the Company reduced interest expense by $10 million , including $1 million of accelerated gains on interest rate swaps previously recorded in accumulated other comprehensive income, and incurred $2 million expense, recorded in Other Income, Expense (net), related to acceleration of fees on the redeemed debt and fees related to the tender offer. (d) In May 2012, the Company issued $700 million of ten -year 3.125% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 2.69% at January 2, 2016 . In March 2014, the Company redeemed $342 million of the Notes. In connection with the debt redemption, the Company reduced interest expense by $2 million and incurred $2 million 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 entered into interest rate swaps in 2013 and 2014 with notional amounts totaling $200 million and $158 million , respectively, which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $13 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $1 million , at January 3, 2015 , recorded as an increase in the hedged debt balance. (e) In May 2014, the Company issued €500 million (approximately $541 million at January 2, 2016 , 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 effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.18% . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. (f) In December 2010, the Company issued $1.0 billion of ten -year 4.0% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for incremental pension and postretirement benefit plan contributions and to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 2.98% at January 2, 2016 . In March 2014, the Company redeemed $150 million of the Notes. In connection with the debt redemption, the Company incurred $12 million of interest expense offset by $7 million of accelerated gains on interest rate swaps previously recorded in accumulated other comprehensive income, and incurred $1 million 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 entered into interest rate swaps in 2013 and 2014 with notional amounts totaling $400 million and $300 million , respectively, which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $14 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million , at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (g) In November 2009, the Company issued $500 million of ten -year 4.15% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its 6.6% U.S. Dollar Notes due 2011. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 3.52% at January 2, 2016 . In 2012, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $15 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $2 million at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (h) In May 2011, the Company issued $400 million of seven -year 3.25% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes including repayment of a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 2.52% at January 2, 2016 . In 2011, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2013, the Company terminated all of the interest rate swaps and subsequently entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company terminated all interest rate swaps, and the resulting unamortized gain of $12 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (i) In May 2014, the Company issued Cdn. $300 million (approximately $217 million USD at January 2, 2016 , 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 2014 at maturity. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.10% . (j) In May 2012, the Company issued $400 million of five -year 1.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 1.71% at January 2, 2016 . In 2013, the Company entered into interest rate swaps with notional amounts totaling $400 million , which effectively converted the Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company terminated all interest rate swaps, and the resulting unamortized gain of $1 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million , at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (k) In November 2011, the Company issued $500 million of five -year 1.875% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes including repayment of a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 1.63% at January 2, 2016 . In 2012, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2013, the Company terminated all of the interest rate swaps and subsequently entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2014, the Company terminated all of the interest rate swaps. The unamortized gain of $2 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. (l) In May 2009, the Company issued $750 million of seven -year 4.45% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 4.10% at January 2, 2016 . The Company entered into interest rate swaps in 2011 and 2012 with notional amounts totaling $200 million and $550 million , respectively, which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2013, the Company terminated all of the interest rate swaps. The unamortized gain of $3 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. (m) In May 2012, the Company issued $350 million of three -year 1.125% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount, was 1.16% . The Company redeemed these Notes in May 2015. (n) In February 2013, the Company issued $250 million of floating-rate U.S. Dollar Notes bearing interest at LIBOR plus 0.23% due February 2015. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand, to repay a portion the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The Company redeemed these Notes in February 2015. All of the Company’s 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 and also contain a change of control provision. The Company and two of its subsidiaries (the Issuers) maintain a program under which the Issuers may issue euro-commercial paper notes up to a maximum aggregate amount outstanding at any time of $750 million or its equivalent in alternative currencies. The notes may have maturities ranging up to 364 days and will be senior unsecured obligations of the applicable Issuer. Notes issued by subsidiary Issuers will be guaranteed by the Company. The notes may be issued at a discount or may bear fixed or floating rate interest or a coupon calculated by reference to an index or formula. There was $261 million and $96 million outstanding under this program as of January 2, 2016 and January 3, 2015 , respectively. At January 2, 2016 , the Company had $2.3 billion of short-term lines of credit, virtually all of which were unused and available for borrowing on an unsecured basis. These lines were comprised principally of an unsecured Five-Year Credit Agreement, which the Company entered into in February 2014 and expires in 2019, replacing the Company’s 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 up to $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. The Company was in compliance with all covenants as of January 2, 2016 . Scheduled principal repayments on long-term debt are (in millions): 2016 – $1,262 ; 2017 – $627 ; 2018 – $407 ; 2019 – $506 ; 2020 – $851 ; 2021 and beyond– $2,864 . Interest expense capitalized as part of the construction cost of fixed assets was (in millions): 2015 – $4 ; 2014 – $5 ; 2013 – $2 . |
Stock Compensation
Stock Compensation | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation [Text Block] | 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, restricted stock units and, to a lesser extent, executive performance shares and restricted stock grants. During 2015, the Company changed the mix of equity compensation, awarding an increasing number of restricted stock units and fewer stock option awards. 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. These awards are administered through several plans, as described within this Note. The 2013 Long-Term Incentive Plan (2013 Plan), approved by shareholders in 2013, permits awards to employees and officers in the form of incentive and non-qualified stock options, performance units, restricted stock or restricted stock units, and stock appreciation rights. The 2013 Plan, which replaced the 2009 Long-Term Incentive Plan (2009 Plan), authorizes the issuance of a total of (a) 22 million shares; plus (b) the total number of shares remaining available for future grants under the 2009 Plan. The total number of shares remaining available for issuance under the 2013 Plan will be reduced by two shares for each share issued pursuant to an award under the 2013 Plan other than a stock option or stock appreciation right, or potentially issuable pursuant to an outstanding award other than a stock option or stock appreciation right, which will in each case reduce the total number of shares remaining by one share for each share issued. The 2013 Plan includes several limitations on awards or payments to individual participants. Options granted under the 2013 and 2009 Plans generally vest over three years. At January 2, 2016, there were 16 million remaining authorized, but unissued, shares under the 2013 Plan. The Non-Employee Director Stock Plan (2009 Director Plan) was approved by shareholders in 2009 and allows each eligible non-employee director to receive shares of the Company’s common stock annually. The number of shares granted pursuant to each annual award will be determined by the Nominating and Governance Committee of the Board of Directors. The 2009 Director Plan, which replaced the 2000 Non-Employee Director Stock Plan (2000 Director Plan), reserves 500,000 shares for issuance, plus the total number of shares as to which awards granted under the 2009 Director Plan or the 2000 Director Plans expire or are forfeited, terminated or settled in cash. Under both the 2009 and 2000 Director Plans, shares (other than stock options) are placed in the Kellogg Company Grantor Trust for Non-Employee Directors (the Grantor Trust). Under the terms of the Grantor Trust, shares are available to a director only upon termination of service on the Board. Under the 2009 Director Plan, awards were as follows (number of shares): 2015- 26,877 ; 2014- 23,890 ; 2013- 26,504 . The 2002 Employee Stock Purchase Plan was approved by shareholders in 2002 and permits eligible employees to purchase Company stock at a discounted price. This plan allows for a maximum of 2.5 million shares of Company stock to be issued at a purchase price equal to 95% of the fair market value of the stock on the last day of the quarterly purchase period. Total purchases through this plan for any employee are limited to a fair market value of $25,000 during any calendar year. At January 2, 2016, there were approximately 0.3 million remaining authorized, but unissued, shares under this plan. Shares were purchased by employees under this plan as follows (approximate number of shares): 2015– 73,000 ; 2014– 75,000 ; 2013– 85,000 . Options granted to employees to purchase discounted stock under this plan are included in the option activity tables within this note. Additionally, an international subsidiary of the Company maintains a stock purchase plan for its employees. Subject to limitations, employee contributions to this plan are matched 1:1 by the Company. Under this plan, shares were granted by the Company to match an equal number of shares purchased by employees as follows (approximate number of shares): 2015– 48,000 ; 2014– 58,000 ; 2013– 58,000 . Compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows: (millions) 2015 2014 2013 Pre-tax compensation expense $ 55 $ 41 $ 38 Related income tax benefit $ 20 $ 15 $ 14 As of January 2, 2016, total stock-based compensation cost related to non-vested awards not yet recognized was $62 million and the weighted-average period over which this amount is expected to be recognized was 2 years. Cash flows realized upon exercise or vesting of stock-based awards in the periods presented are included in the following table. Tax benefits realized upon exercise or vesting of stock-based awards generally represent the tax benefit of the difference between the exercise price and the strike price of the option. Cash used by the Company to settle equity instruments granted under stock-based awards was insignificant. (millions) 2015 2014 2013 Total cash received from option exercises and similar instruments $ 261 $ 217 $ 475 Tax benefits realized upon exercise or vesting of stock-based awards: Windfall benefits classified as financing cash flow $ 14 $ 11 $ 24 Shares used to satisfy stock-based awards are normally issued out of treasury stock, although management is authorized to issue new shares to the extent permitted by respective plan provisions. Refer to Note 5 for information on shares issued during the periods presented to employees and directors under various long-term incentive plans and share repurchases under the Company’s stock repurchase authorizations. The Company does not currently have a policy of repurchasing a specified number of shares issued under employee benefit programs during any particular time period. Stock options During the periods presented, non-qualified stock options were granted to eligible employees under the 2013 and 2009 Plans with exercise prices equal to the fair market value of the Company’s stock on the grant date, a contractual term of ten years, and a three -year graded vesting period. Management estimates the fair value of each annual stock option award on the date of grant using a lattice-based option valuation model. Composite assumptions are presented in the following table. Weighted-average values are disclosed for certain inputs which incorporate a range of assumptions. Expected volatilities are based principally on historical volatility of the Company’s stock, and to a lesser extent, on implied volatilities from traded options on the Company’s stock. Historical volatility corresponds to the contractual term of the options granted. The Company uses historical data to estimate option exercise and employee termination within the valuation models; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time that options granted are expected to be outstanding; the weighted-average expected term for all employee groups is presented in the following table. The risk-free rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. Stock option valuation model assumptions for grants within the year ended: 2015 2014 2013 Weighted-average expected volatility 16.00 % 15.00 % 15.00 % Weighted-average expected term (years) 6.87 7.34 7.44 Weighted-average risk-free interest rate 1.98 % 2.35 % 1.49 % Dividend yield 3.00 % 3.00 % 2.90 % Weighted-average fair value of options granted $ 7.21 $ 6.70 $ 5.92 A summary of option activity for the year ended January 2, 2016 is presented in the following table: Employee and director stock options Shares (millions) Weighted- average exercise price Weighted- average remaining contractual term (yrs.) Aggregate intrinsic value (millions) Outstanding, beginning of year 21 $ 56 Granted 3 64 Exercised (5 ) 53 Forfeitures and expirations — 60 Outstanding, end of year 19 $ 58 6.9 $ 264 Exercisable, end of year 10 $ 55 5.9 $ 180 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2014 2013 Outstanding, beginning of year 20 25 Granted 6 6 Exercised (4 ) (10 ) Forfeitures and expirations (1 ) (1 ) Outstanding, end of year 21 20 Exercisable, end of year 10 9 Weighted-average exercise price: Outstanding, beginning of year $ 54 $ 50 Granted 60 60 Exercised 50 48 Forfeitures and expirations 58 55 Outstanding, end of year $ 56 $ 54 Exercisable, end of year $ 53 $ 50 The total intrinsic value of options exercised during the periods presented was (in millions): 2015– $65 ; 2014– $56 ; 2013– $139 . Other stock-based awards During the periods presented, other stock-based awards consisted principally of executive performance shares and restricted stock granted under the 2013 and 2009 Plans. In the first quarter of 2015, 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 upon vesting. The number of shares earned could range between 0 and 200% of the target amount depending upon performance achieved over the three year vesting period. The performance conditions of the award include three -year cumulative operating cash flow (CCF) and total shareholder return (TSR) of the Company's common stock relative to a select group of peer companies. A Monte Carlo valuation was used to determine the fair value of the awards. The TSR performance metric is a market condition. Therefore, compensation cost of the TSR condition is fixed at the measurement date and is not revised based on actual performance. The TSR metric was valued as a multiplier of possible levels of CCF achievement. Compensation cost related to CCF performance is revised for changes in the expected outcome. The 2015 target grant currently corresponds to approximately 172,000 shares, with a grant-date fair value of $58 per share. In 2014 and 2013, the Company made performance share awards to a limited number of senior executive-level employees, which entitles these employees to receive a specified number of shares of the Company’s common stock on the vesting date, provided cumulative three-year targets are achieved. The cumulative three-year targets involved operating profit and comparable net sales growth. Management estimates the fair value of performance share awards based on the market price of the underlying stock on the date of grant, reduced by the present value of estimated dividends foregone during the performance period. The 2014 and 2013 target grants (as revised for non-vested forfeitures and other adjustments) currently correspond to approximately 202,000 and 185,000 shares, respectively, with a grant-date fair value of $54 and $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 year-end 2015, the maximum future value that could be awarded on the vesting date was (in millions): 2015 award– $25 ; 2014 award– $29 ; and 2013 award– $27 . The 2012 performance share award, payable in stock, was settled at 35% of target in February 2015 for a total dollar equivalent of $3 million . The Company also grants restricted stock and restricted stock units to eligible employees under the 2013 Plan. Restrictions with respect to sale or transferability generally lapse after three years and, in the case of restricted stock, the grantee is normally entitled to receive shareholder dividends during the vesting period. Management estimates the fair value of restricted stock grants based on the market price of the underlying stock on the date of grant. A summary of restricted stock and restricted stock unit activity for the year ended January 2, 2016, is presented in the following table: Employee restricted stock and restricted stock units Shares (thousands) Weighted- average grant-date fair value Non-vested, beginning of year 346 $ 54 Granted 617 59 Vested (113 ) 50 Forfeited (44 ) 58 Non-vested, end of year 806 $ 57 Additionally, restricted stock and restricted stock unit activity for 2014 and 2013 is presented in the following table: Employee restricted stock and restricted stock units 2014 2013 Shares (in thousands): Non-vested, beginning of year 318 316 Granted 114 139 Vested (65 ) (117 ) Forfeited (21 ) (20 ) Non-vested, end of year 346 318 Weighted-average exercise price: Non-vested, beginning of year $ 52 $ 50 Granted 56 52 Vested 51 51 Forfeited 53 47 Non-vested, end of year $ 54 $ 52 The total fair value of restricted stock and restricted stock units vesting in the periods presented was (in millions): 2015– $7 ; 2014– $4 ; 2013– $6 . |
Pension Benefits
Pension Benefits | 12 Months Ended |
Jan. 02, 2016 | |
Pension Benefits [Abstract] | |
Pension Benefits [Text Block] | PENSION BENEFITS The Company sponsors a number of U.S. and foreign pension plans to provide retirement benefits for its employees. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. See Note 11 for more information regarding the Company’s participation in multiemployer plans. Defined benefits for salaried employees are generally based on salary and years of service, while union employee benefits are generally a negotiated amount for each year of service. Beginning in 2015, the Company used a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end. Obligations and funded status The aggregate change in projected benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2015 2014 Change in projected benefit obligation Beginning of year $ 5,570 $ 4,888 Service cost 114 106 Interest cost 206 225 Plan participants’ contributions 2 2 Amendments 25 4 Actuarial (gain)loss (191 ) 754 Benefits paid (262 ) (281 ) Curtailment and special termination benefits (2 ) — Other 4 3 Foreign currency adjustments (150 ) (131 ) End of year $ 5,316 $ 5,570 Change in plan assets Fair value beginning of year $ 5,028 $ 5,014 Actual return on plan assets (102 ) 390 Employer contributions 19 37 Plan participants’ contributions 2 2 Benefits paid (235 ) (261 ) Other 4 3 Foreign currency adjustments (132 ) (157 ) Fair value end of year $ 4,584 $ 5,028 Funded status $ (732 ) $ (542 ) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 231 $ 250 Other current liabilities (17 ) (15 ) Other liabilities (946 ) (777 ) Net amount recognized $ (732 ) $ (542 ) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 67 $ 59 Net amount recognized $ 67 $ 59 The accumulated benefit obligation for all defined benefit pension plans was $4.9 billion and $5.1 billion at January 2, 2016 and January 3, 2015 , respectively. Information for pension plans with accumulated benefit obligations in excess of plan assets were: (millions) 2015 2014 Projected benefit obligation $ 3,769 $ 3,958 Accumulated benefit obligation $ 3,574 $ 3,683 Fair value of plan assets $ 2,835 $ 3,179 Expense The components of pension expense are presented in the following table. Pension expense for defined contribution plans relates to certain foreign-based defined contribution plans and multiemployer plans in the United States in which the Company participates on behalf of certain unionized workforces. (millions) 2015 2014 2013 Service cost $ 114 $ 106 $ 133 Interest cost 206 225 203 Expected return on plan assets (399 ) (415 ) (359 ) Amortization of unrecognized prior service cost 13 14 16 Recognized net (gain)loss 303 782 (854 ) Curtailment and special termination benefits (1 ) 4 34 Pension (income)expense: Defined benefit plans 236 716 (827 ) Defined contribution plans 40 36 35 Total $ 276 $ 752 $ (792 ) The estimated prior service cost for defined benefit pension plans that will be amortized from accumulated other comprehensive income into pension expense over the next fiscal year is approximately $13 million . The Company and certain of its subsidiaries sponsor 401(k) or similar savings plans for active employees. Expense related to these plans was (in millions): 2015 – $40 million ; 2014 – $43 million ; 2013 – $41 million . These amounts are not included in the preceding expense table. Company contributions to these savings plans approximate annual expense. Company contributions to multiemployer and other defined contribution pension plans approximate the amount of annual expense presented in the preceding table. Assumptions The worldwide weighted-average actuarial assumptions used to determine benefit obligations were: 2015 2014 2013 Discount rate 4.1 % 3.9 % 4.7 % Long-term rate of compensation increase 3.9 % 4.0 % 4.1 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2015 2014 2013 Discount rate 3.9 % 4.7 % 4.1 % Long-term rate of compensation increase 4.0 % 4.1 % 4.1 % Long-term rate of return on plan assets 8.3 % 8.5 % 8.5 % To determine the overall expected long-term rate of return on plan assets, the Company models expected returns over a 20-year investment horizon with respect to the specific investment mix of its major plans. The return assumptions used reflect a combination of rigorous historical performance analysis and forward-looking views of the financial markets including consideration of current yields on long-term bonds, price-earnings ratios of the major stock market indices, and long-term inflation. The U.S. model, which corresponds to approximately 68% of consolidated pension and other postretirement benefit plan assets, incorporates a long-term inflation assumption of 2.5% and an active management premium of 1% (net of fees) validated by historical analysis. Similar methods are used for various foreign plans with invested assets, reflecting local economic conditions. The expected rate of return for 2015 of 8.5% equated to approximately the 57th percentile expectation. Refer to Note 1 . At the end of 2014, the Company revised their mortality assumption after considering the Society of Actuaries’ (SOA) updated mortality tables and improvement scale, as well as other mortality information available from the Social Security Administration to develop assumptions aligned with the Company’s expectation of future improvement rates. In determining the appropriate mortality assumptions as of January 2, 2016, the Company considered the SOA's 2015 updated improvement scale and believes its assumption is appropriate. To conduct the annual review of discount rates, the Company selected the discount rate based on a cash-flow matching analysis using Towers Watson’s proprietary RATE:Link tool and projections of the future benefit payments that constitute the projected benefit obligation for the plans. RATE:Link establishes the uniform discount rate that produces the same present value of the estimated future benefit payments, as is generated by discounting each year’s benefit payments by a spot rate applicable to that year. The spot rates used in this process are derived from a yield curve created from yields on the 40 th to 90 th percentile of U.S. high quality bonds. A similar methodology is applied in Canada and Europe, except the smaller bond markets imply that yields between the 10 th and 90 th percentiles are preferable. The measurement dates for the defined benefit plans are consistent with the Company’s fiscal year end. Accordingly, the Company selected discount rates to measure the benefit obligations consistent with market indices at year-end. Beginning in 2016, the Company will change the method used to estimate the service and interest costs for pension and postretirement benefits. The new method utilizes a full yield curve approach to estimate service and interest costs by applying specific spot rates along the yield curve used to determine the benefit obligation of relevant projected cash outflows. Historically, the Company utilized a single weighted-average discount rate applied to projected cash outflows. The Company made the change to provide a more precise measurement of service and interest costs by aligning the timing of the plan's liability cash flows to the corresponding spot rate on the yield curve. The change does not impact the measurement of the plan's obligations. The Company has accounted for this change as a change in accounting estimate. Plan assets The Company categorized Plan assets within a three level fair value hierarchy described as follows: Investments stated at fair value as determined by quoted market prices (Level 1) include: Cash and cash equivalents: Value based on cost, which approximates fair value. Corporate stock, common: Value based on the last sales price on the primary exchange. Investments stated at estimated fair value using significant observable inputs (Level 2) include: Cash and cash equivalents: Institutional short-term investment vehicles valued daily. Mutual funds: Valued at the net asset value of shares held by the Plan at year end. Collective trusts : Value based on the net asset value of units held at year end. Bonds: Value based on matrices or models from pricing vendors. Limited partnerships: Value based on the ending net capital account balance at year end. Investments stated at estimated fair value using significant unobservable inputs (Level 3) include: Real estate: Value based on the net asset value of units held at year end. The fair value of real estate holdings is based on market data including earnings capitalization, discounted cash flow analysis, comparable sales transactions or a combination of these methods. Buy-in annuity contracts: Value based on the calculated pension benefit obligation covered by the non-participating annuity contracts at year-end. Bonds: Value based on matrices or models from brokerage firms. A limited number of the investments are in default. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s practice regarding the timing of transfers between levels is to measure transfers in at the beginning of the month and transfers out at the end of the month. For the year ended January 2, 2016 , the Company had no transfers between Levels 1 and 2. The fair value of Plan assets as of January 2, 2016 summarized by level within the fair value hierarchy are as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 83 $ 8 $ — $ 91 Corporate stock, common: Domestic 608 — — 608 International 109 — — 109 Mutual funds: International equity — 441 — 441 Collective trusts: Domestic equity — 411 — 411 International equity — 1,130 — 1,130 Eurozone sovereign debt — 10 — 10 Other international debt — 368 — 368 Limited partnerships — 455 — 455 Bonds, corporate — 419 — 419 Bonds, government — 157 — 157 Bonds, other — 49 — 49 Buy-in annuity contract — — 135 135 Real estate — — 135 135 Other — 60 6 66 Total $ 800 $ 3,508 $ 276 $ 4,584 The fair value of Plan assets at January 3, 2015 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 47 $ 44 $ — $ 91 Corporate stock, common: Domestic 556 — — 556 International 161 — — 161 Mutual funds: International equity — 393 — 393 International debt — — — — Collective trusts: Domestic equity — 594 — 594 International equity — 1,261 — 1,261 Eurozone sovereign debt — 11 — 11 Other international debt — 534 — 534 Limited partnerships — 475 — 475 Bonds, corporate — 519 — 519 Bonds, government — 172 — 172 Bonds, other — 59 — 59 Real estate — — 130 130 Other — 64 8 72 Total $ 764 $ 4,126 $ 138 $ 5,028 There were no unfunded commitments to purchase investments at January 2, 2016 or January 3, 2015 . The Company’s investment strategy for its major defined benefit plans is to maintain a diversified portfolio of asset classes with the primary goal of meeting long-term cash requirements as they become due. Assets are invested in a prudent manner to maintain the security of funds while maximizing returns within the Plan’s investment policy. The investment policy specifies the type of investment vehicles appropriate for the Plan, asset allocation guidelines, criteria for the selection of investment managers, procedures to monitor overall investment performance as well as investment manager performance. It also provides guidelines enabling Plan fiduciaries to fulfill their responsibilities. The current weighted-average target asset allocation reflected by this strategy is: equity securities– 66% ; debt securities– 21% ; real estate and other– 13% . Investment in Company common stock represented 1.4% and 1.3% of consolidated plan assets at January 2, 2016 and January 3, 2015 , respectively. Plan funding strategies are influenced by tax regulations and funding requirements. The Company currently expects to contribute approximately $28 million to its defined benefit pension plans during 2016. Level 3 gains and losses Changes in the fair value of the Plan’s Level 3 assets are summarized as follows: (millions) Bonds, corporate Real estate Buy-in Annuity Contract Other Total December 28, 2013 $ 1 $ 125 — $ 8 $ 134 Sales (1 ) (1 ) — — (2 ) Realized and unrealized gain — 23 — — 23 Currency translation — (17 ) — — (17 ) January 3, 2015 $ — $ 130 $ — $ 8 $ 138 Sales — (5 ) — (3 ) (8 ) Purchases — — 135 3 138 Realized and unrealized gain — 16 — (1 ) 15 Currency translation — (6 ) — (1 ) (7 ) January 2, 2016 $ — $ 135 $ 135 $ 6 $ 276 The net change in Level 3 assets includes a gain attributable to the change in unrealized holding gains or losses related to Level 3 assets held at January 2, 2016 and January 3, 2015 totaling $15 million and $23 million , respectively. Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): 2016– $416 ; 2017– $238 ; 2018– $243 ; 2019– $254 ; 2020– $265 ; 2021 to 2025– $1,501 . |
Nonpension Postretirement and P
Nonpension Postretirement and Postemployment Benefits | 12 Months Ended |
Jan. 02, 2016 | |
Nonpension Postretirement And Postemployment Benefits [Abstract] | |
Nonpension Postretirement And Postemployment Benefits [Text Block] | NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS Postretirement The Company sponsors a number of plans to provide health care and other welfare benefits to retired employees in the United States and Canada, who have met certain age and service requirements. The majority of these plans are funded or unfunded defined benefit plans, although the Company does participate in a limited number of multiemployer or other defined contribution plans for certain employee groups. The Company contributes to voluntary employee benefit association (VEBA) trusts to fund certain U.S. retiree health and welfare benefit obligations. Beginning in 2015, the Company used a December 31 measurement date for these plans and, when necessary, adjusts for plan contributions and significant events between December 31 and its fiscal year-end. Obligations and funded status The aggregate change in accumulated postretirement benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2015 2014 Change in accumulated benefit obligation Beginning of year $ 1,288 $ 1,202 Service cost 29 28 Interest cost 48 55 Actuarial (gain) loss (53 ) 116 Benefits paid (57 ) (62 ) Curtailments — (28 ) Amendments (84 ) (18 ) Foreign currency adjustments (8 ) (5 ) End of year $ 1,163 $ 1,288 Change in plan assets Fair value beginning of year $ 1,204 $ 1,178 Actual return on plan assets (65 ) 81 Employer contributions 14 16 Benefits paid (69 ) (71 ) Fair value end of year $ 1,084 $ 1,204 Funded status $ (79 ) $ (84 ) Amounts recognized in the Consolidated Balance Sheet consist of Other non-current assets $ — $ — Other current liabilities (2 ) (2 ) Other liabilities (77 ) (82 ) Net amount recognized $ (79 ) $ (84 ) Amounts recognized in accumulated other comprehensive income consist of Prior service credit (95 ) (16 ) Net amount recognized $ (95 ) $ (16 ) Expense Components of postretirement benefit expense (income) were: (millions) 2015 2014 2013 Service cost $ 29 $ 28 $ 34 Interest cost 48 55 50 Expected return on plan assets (100 ) (98 ) (86 ) Amortization of unrecognized prior service credit (5 ) (3 ) (3 ) Recognized net (gain) loss 112 133 (247 ) Curtailment — (28 ) 1 Postretirement benefit expense: Defined benefit plans 84 87 (251 ) Defined contribution plans 14 14 13 Total $ 98 $ 101 $ (238 ) The estimated prior service credit that will be amortized from accumulated other comprehensive income into nonpension postretirement benefit expense over the next fiscal year is expected to be approximately $9 million . Assumptions The weighted-average actuarial assumptions used to determine benefit obligations were: 2015 2014 2013 Discount rate 4.2 % 4.0 % 4.8 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2015 2014 2013 Discount rate 4.0 % 4.8 % 3.9 % Long-term rate of return on plan assets 8.5 % 8.5 % 8.5 % The Company determines the overall discount rate and expected long-term rate of return on VEBA trust obligations and assets in the same manner as that described for pension trusts in Note 9 . The assumed health care cost trend rate is 5.0% for 2016, decreasing gradually to 4.5% by the year 2018 and remaining at that level thereafter. These trend rates reflect the Company’s historical experience and management’s expectations regarding future trends. A one percentage point change in assumed health care cost trend rates would have the following effects: (millions) One percentage point increase One percentage point decrease Effect on total of service and interest cost components $ 4 $ (3 ) Effect on postretirement benefit obligation 89 (72 ) Plan assets The fair value of Plan assets as of January 2, 2016 summarized by level within fair value hierarchy described in Note 9 , are as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 9 $ 13 $ — $ 22 Corporate stock, common: Domestic 195 — — 195 International 5 — — 5 Mutual funds: Domestic equity — 52 — 52 International equity — 111 — 111 Domestic debt — 54 — 54 Collective trusts: Domestic equity — 150 — 150 International equity — 148 — 148 Limited partnerships — 166 — 166 Bonds, corporate — 120 — 120 Bonds, government — 48 — 48 Bonds, other — 12 — 12 Other — 1 — 1 Total $ 209 $ 875 $ — $ 1,084 The fair value of Plan assets at January 3, 2015 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 6 $ 27 $ — $ 33 Corporate stock, common: Domestic 214 — — 214 International 17 — — 17 Mutual funds: Domestic equity — 153 — 153 International equity — 120 — 120 Domestic debt — 63 — 63 Collective trusts: Domestic equity — 53 — 53 International equity — 164 — 164 Limited partnerships — 174 — 174 Bonds, corporate — 141 — 141 Bonds, government — 54 — 54 Bonds, other — 17 — 17 Other — 1 — 1 Total $ 237 $ 967 $ — $ 1,204 The Company’s asset investment strategy for its VEBA trusts is consistent with that described for its pension trusts in Note 9 . The current target asset allocation is 75% equity securities and 25% debt securities. The Company currently expects to contribute approximately $15 million to its VEBA trusts during 2016. There were no Level 3 assets during 2015 and 2014 . Postemployment Under certain conditions, the Company provides benefits to former or inactive employees, including salary continuance, severance, and long-term disability, in the United States and several foreign locations. The Company’s postemployment benefit plans are unfunded. Actuarial assumptions used are generally consistent with those presented for pension benefits in Note 9 . The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were: (millions) 2015 2014 Change in accumulated benefit obligation Beginning of year $ 104 $ 87 Service cost 7 7 Interest cost 4 4 Actuarial (gain)loss — 8 Benefits paid (6 ) (9 ) Amendments — 8 Foreign currency adjustments (1 ) (1 ) End of year $ 108 $ 104 Funded status $ (108 ) $ (104 ) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (8 ) $ (8 ) Other liabilities (100 ) (96 ) Net amount recognized $ (108 ) $ (104 ) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 6 $ 7 Net experience loss 27 30 Net amount recognized $ 33 $ 37 Components of postemployment benefit expense were: (millions) 2015 2014 2013 Service cost $ 7 $ 7 $ 7 Interest cost 4 4 3 Amortization of unrecognized prior service cost 1 — — Recognized net loss 3 3 5 Postemployment benefit expense $ 15 $ 14 $ 15 The estimated net experience loss and net prior service cost that will be amortized from accumulated other comprehensive income into postemployment benefit expense over the next fiscal year is $3 million and $1 million , respectively. Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (millions) Postretirement Postemployment 2016 $ 71 $ 9 2017 72 8 2018 73 8 2019 73 8 2020 74 8 2021-2025 390 42 |
Multipemployer Pension and Post
Multipemployer Pension and Postretirement Plans | 12 Months Ended |
Jan. 02, 2016 | |
Multiemployer Plans [Abstract] | |
Multiemployer Plans [Text Block] | MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS The Company contributes to multiemployer defined contribution pension and postretirement benefit plans under the terms of collective-bargaining agreements that cover certain unionized employee groups in the United States. Contributions to these plans are included in total pension and postretirement benefit expense as reported in Note 9 and Note 10 , respectively. Pension benefits The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan are borne by the remaining participating employers. The Company’s participation in multiemployer pension plans for the year ended January 2, 2016, is outlined in the table below. The “EIN/PN” column provides the Employer Identification Number (EIN) and the three-digit plan number (PN). The most recent Pension Protection Act (PPA) zone status available for 2015 and 2014 is for the plan year-ends as indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are between 65 percent percent and 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. In addition to regular plan contributions, the Company may be subject to a surcharge if the plan is in the red zone. The “Surcharge Imposed” column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) (CBA) to which the plans are subject. PPA Zone Status Contributions (millions) Pension trust fund EIN/PN 2015 2014 FIP/RP Status 2015 2014 2013 Surcharge Imposed Expiration Date of CBA Bakery and Confectionary Union and Industry International Pension Fund (a) 52-6118572 / Red - Red - Implemented $ 5.1 $ 5.4 $ 5.2 Yes 7/31/2016 to Central States, Southeast and Southwest Areas Pension Fund (b) 36-6044243 / Red - Red - Implemented 4.8 4.5 4.5 Yes 4/30/2016 to Western Conference of Teamsters Pension Trust ( c ) 91-6145047 / Green - Green - NA 1.6 1.6 1.5 No 1/31/2018 to Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424 / Red - Red - Implemented 0.5 0.5 0.5 No 9/28/2019 Local 734 Pension Plan 51-6040136 / Red - Red - Implemented 0.3 0.3 0.3 Yes 4/1/2019 Twin Cities Bakery Drivers Pension Plan 41-6172265 / Green - Green - NA 0.2 0.2 0.2 Yes 5/31/2018 Upstate New York Bakery Drivers and Industry Pension Fund 15-0612437 / Green - Green - NA 0.2 0.2 0.1 No 9/10/2017 Other Plans 2.0 2.0 2.2 Total contributions: $ 14.7 $ 14.7 $ 14.5 (a) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 70 percent of the Company’s participants in this fund are covered by a single CBA that expires on 4/30/2017. (b) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 40 percent of the Company’s participants in this fund are covered by a single CBA that expires on 9/30/2018. (c) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 40 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/24/2018. The Company was listed in the Forms 5500 of the following plans as of the following plan year ends as providing more than 5 percent of total contributions: Pension trust fund Contributions to the plan exceeded more than 5% of total contributions (as of the Plan’s year end) Hagerstown Motor Carriers and Teamsters Pension Fund 6/30/2014, 6/30/2013 and 6/30/2012 Local 734 Pension Plan 4/30/2015, 4/30/2014 and 4/30/2013 Twin Cities Bakery Drivers Pension Plan 12/31/2014, 12/31/2013 and 12/31/2012 Upstate New York Bakery Drivers and Industry Pension Fund 6/30/15, 6/30/2014 and 6/30/2013 At the date the Company’s financial statements were issued, certain Forms 5500 were not available for the plan years ending in 2015. In addition to regular contributions, the Company could be obligated to pay additional amounts, known as a withdrawal liability, if a multiemployer pension plan has unfunded vested benefits and the Company decreases or ceases participation in that plan. The Company has recognized net estimated withdrawal expense related to curtailment and special termination benefits associated with the Company’s withdrawal from certain multiemployer plans aggregating (in millions): 2015 – $(2) ; 2014 – $0 ; 2013 – $0 . Postretirement benefits Multiemployer postretirement benefit plans provide health care and other welfare benefits to active and retired employees who have met certain age and service requirements. Contributions to multiemployer postretirement benefit plans were (in millions): 2015 – $14 ; 2014 – $14 ; 2013 – $13 . |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The components of income before income taxes and the provision for income taxes were as follows: (millions) 2015 2014 2013 Income before income taxes United States $ 551 $ 502 $ 2,102 Foreign 222 323 504 773 825 2,606 Income taxes Currently payable Federal 212 301 302 State 42 36 68 Foreign 74 103 105 328 440 475 Deferred Federal (136 ) (186 ) 331 State (14 ) (14 ) (2 ) Foreign (19 ) (54 ) (12 ) (169 ) (254 ) 317 Total income taxes $ 159 $ 186 $ 792 The difference between the U.S. federal statutory tax rate and the Company’s effective income tax rate was: 2015 2014 2013 U.S. statutory income tax rate 35.0 35.0 % 35.0 % Foreign rates varying from 35% (9.6 ) (7.9 ) (3.5 ) State income taxes, net of federal benefit 2.3 1.7 1.7 Cost (benefit) of remitted and unremitted foreign earnings (4.4 ) (0.1 ) (0.4 ) U.S. deduction for qualified production activities (2.3 ) (2.8 ) (0.9 ) Statutory rate changes, deferred tax impact (0.8 ) (0.4 ) (0.5 ) VIE deconsolidation (2.3 ) — — Venezuela remeasurement 5.0 — — Other (2.3 ) (2.9 ) (1.0 ) Effective income tax rate 20.6 % 22.6 % 30.4 % As presented in the preceding table, the Company’s 2015 consolidated effective tax rate was 20.6% , as compared to 22.6% in 2014 and 30.4% in 2013 . The 2015 effective income tax rate benefited due to mark-to-market loss adjustments to the Company’s pension plans in primarily higher tax jurisdictions. This results in a greater percentage of total income being generated in lower tax jurisdictions and permanent tax differences in the U.S. having a higher percentage impact on the tax rate. In addition, the tax rate benefited from a reduction in tax related to current year remitted and unremitted earnings. The VIE deconsolidation, described in Note 5 , included a $67 million non-cash non-taxable gain which positively impacted the tax rate. During 2015, the Company recorded pre-tax charges of $112 million in the Latin America operating segment due to the devaluation of the Venezuelan currency which had no associated tax benefit. As of January 2, 2016 substantially all foreign earnings were considered permanently invested. Accumulated foreign earnings of approximately $2.0 billion , primarily in Europe, were considered indefinitely reinvested. Due to the varying tax laws around the world and fluctuation in foreign exchange rates, it is not practicable to determine the unrecognized deferred tax liability on these earnings because the actual tax liability, if any, would be dependent on circumstances existing when a repatriation, sale, or liquidation occurs. The 2014 effective income tax rate benefited due to mark-to-market loss adjustments to the Company’s pension plans in primarily higher tax jurisdictions. This results in a greater percentage of total income being generated in lower tax jurisdictions and permanent tax differences in the U.S. having a higher percentage impact on the tax rate. As of January 3, 2015 , the Company recorded a deferred tax liability of $1 million related to $23 million of foreign earnings not considered indefinitely reinvested. Accumulated foreign earnings of approximately $2.2 billion , primarily in Europe, were considered indefinitely reinvested. Due to varying tax laws around the world and fluctuations in foreign exchange rates, it is not practicable to determine the unrecognized deferred tax liability on these earnings because the actual tax liability, if any, would be dependent on circumstances existing when a repatriation, sale or liquidation occurs. The 2013 effective income tax rate was negatively impacted by income generated from mark-to-market adjustments for the Company’s pension plans that was generally incurred in jurisdictions with tax rates higher than the effective income tax rate. As of December 28, 2013 , the Company recorded a deferred tax liability of $2 million related to $24 million of foreign earnings not considered indefinitely reinvested. Accumulated foreign earnings of approximately $2.2 billion , primarily in Europe and Mexico, were considered indefinitely reinvested. Due to varying tax laws around the world and fluctuations in foreign exchange rates, it is not practicable to determine the unrecognized deferred tax liability on these earnings because the actual tax liability, if any, would be dependent on circumstances existing when a repatriation, sale or liquidation occurs. Management monitors the Company’s ability to utilize certain future tax deductions, operating losses and tax credit carryforwards, prior to expiration. Changes resulting from management’s assessment will result in impacts to deferred tax assets and the corresponding impacts on the effective income tax rate. Valuation allowances were recorded to reduce deferred tax assets to an amount that will, more likely than not, be realized in the future. The total tax benefit of carryforwards at year-end 2015 and 2014 were $55 million and $54 million , respectively, with related valuation allowances at year-end 2015 and 2014 of $45 million and $39 million , respectively. Of the total carryforwards at year-end 2015 , substantially all will expire after 2019. The following table provides an analysis of the Company’s deferred tax assets and liabilities as of year-end 2015 and 2014 . Deferred tax assets on employee benefits increased in 2015 due to lower asset returns and discount rate decreases associated with the Company’s pension and postretirement plans. Deferred tax assets Deferred tax liabilities (millions) 2015 2014 2015 2014 U.S. state income taxes $ 13 $ 10 $ 43 $ 49 Advertising and promotion-related 15 21 — — Wages and payroll taxes 21 36 — — Inventory valuation 31 — — — Employee benefits 366 305 — — Operating loss and credit carryforwards 55 54 — — Hedging transactions 43 48 — — Depreciation and asset disposals — — 345 352 Trademarks and other intangibles — — 576 555 Deferred compensation 35 35 — — Stock options 42 38 — — Unremitted foreign earnings — — — 1 Other 86 84 — — 707 631 964 957 Less valuation allowance (63 ) (51 ) — — Total deferred taxes $ 644 $ 580 $ 964 $ 957 Net deferred tax asset (liability) $ (320 ) $ (377 ) Classified in balance sheet as: Other current assets $ 227 $ 184 Other current liabilities (9 ) (10 ) Other assets 147 175 Other liabilities (685 ) (726 ) Net deferred tax asset (liability) $ (320 ) $ (377 ) The change in valuation allowance reducing deferred tax assets was: (millions) 2015 2014 2013 Balance at beginning of year $ 51 $ 61 $ 59 Additions charged to income tax expense 23 9 17 Reductions credited to income tax expense (7 ) (3 ) (3 ) Other (a) — — (10 ) Currency translation adjustments (4 ) (16 ) (2 ) Balance at end of year $ 63 $ 51 $ 61 (a) Reduction due to the disposition of a business resulting in deferred tax asset and valuation allowance being eliminated. Uncertain tax positions The Company is subject to federal income taxes in the U.S. as well as various state, local, and foreign jurisdictions. The Company’s 2015 provision for U.S. federal income taxes represents approximately 50% of the Company’s consolidated income tax provision. The Company was chosen to participate in the Internal Revenue Service (IRS) Compliance Assurance Program (CAP) beginning with the 2008 tax year. As a result, with limited exceptions, the Company is no longer subject to U.S. federal examinations by the IRS for years prior to 2015. The Company is under examination for income and non-income tax filings in various state and foreign jurisdictions. As of January 2, 2016 , the Company has classified $13 million of unrecognized tax benefits as a 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 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 as of the years ended January 2, 2016 , January 3, 2015 and December 28, 2013 . For the 2015 year, approximately $48 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods. (millions) 2015 2014 2013 Balance at beginning of year $ 78 $ 79 $ 80 Tax positions related to current year: Additions 8 7 9 Tax positions related to prior years: Additions 9 10 17 Reductions (12 ) (12 ) (13 ) Settlements (10 ) (2 ) (14 ) Lapses in statutes of limitation — (4 ) — Balance at end of year $ 73 $ 78 $ 79 For the year ended January 2, 2016 , the Company paid tax-related interest totaling $3 million reducing the accrual balance to $17 million at year end. For the year ended January 3, 2015 , the Company recognized an increase of $3 million of tax-related interest resulting in an accrual balance of $20 million at January 3, 2015 . For the year ended December 28, 2013 , the Company recognized an increase of $4 million of tax-related interest and payments of $6 million , resulting in an accrual balance of approximately $17 million accrued at December 28, 2013 . |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 12 Months Ended |
Jan. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value [Text Block] | DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company is exposed to certain market risks such as changes in interest rates, foreign currency exchange rates, and commodity prices, which exist as a part of its ongoing business operations. Management uses derivative financial and commodity instruments, including futures, options, and swaps, where appropriate, to manage these risks. Instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. 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 January 2, 2016 and January 3, 2015 were as follows: (millions) 2015 2014 Foreign currency exchange contracts $ 1,210 $ 764 Interest rate contracts — 2,958 Commodity contracts 470 492 Total $ 1,680 $ 4,214 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 January 2, 2016 and January 3, 2015, 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 January 2, 2016 or January 3, 2015. The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of January 2, 2016 and January 3, 2015: Derivatives designated as hedging instruments: 2015 2014 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 11 $ 11 $ — $ 29 $ 29 Interest rate contracts (a): Other assets — — — — 7 7 Total assets $ — $ 11 $ 11 $ — $ 36 $ 36 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (10 ) $ (10 ) $ — $ (6 ) $ (6 ) Interest rate contracts: Other current liabilities — — — — (3 ) (3 ) Other liabilities — — — — (16 ) (16 ) Commodity contracts: Other current liabilities — (14 ) (14 ) — (12 ) (12 ) Other liabilities — — — — (11 ) (11 ) Total liabilities $ — $ (24 ) $ (24 ) $ — $ (48 ) $ (48 ) (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 January 3, 2015. Derivatives not designated as hedging instruments: 2015 2014 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 18 $ 18 $ — $ — $ — Commodity contracts: Other current assets 4 — 4 7 — 7 Total assets $ 4 $ 18 $ 22 $ 7 $ — $ 7 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — (6 ) $ (6 ) $ — $ — $ — Commodity contracts: Other current liabilities (33 ) — (33 ) (36 ) — (36 ) Other liabilities — — — (4 ) — (4 ) Total liabilities $ (33 ) $ (6 ) $ (39 ) $ (40 ) $ — $ (40 ) The Company has 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 $1.2 billion and $600 million as of January 2, 2016 and January 3, 2015, respectively. 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 January 2, 2016 and January 3, 2015 would be adjusted as detailed in the following table: As of January 2, 2016: 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 $ 33 $ (12 ) $ — $ 21 Total liability derivatives $ (63 ) $ 12 $ 51 $ — As of January 3, 2015: 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 $ 43 $ (29 ) $ — $ 14 Total liability derivatives $ (88 ) $ 29 $ 50 $ (9 ) The effect of derivative instruments on the Consolidated Statement of Income for the years ended January 2, 2016 and January 3, 2015 were as follows: Derivatives in fair value hedging relationships (millions) Location of gain (loss) recognized in income Gain (loss) recognized in income (a) 2015 2014 Foreign currency exchange contracts OIE $ (4 ) $ 3 Interest rate contracts Interest expense 20 17 Total $ 16 $ 20 (a) Includes the ineffective portion and amount excluded from effectiveness testing. Derivatives in cash flow hedging relationships (millions) Gain (loss) recognized in AOCI Location of gain (loss) reclassified from AOCI Gain (Loss) reclassified from AOCI into income Location of gain (loss) recognized in income (a) Gain (loss) recognized in income (a) 2015 2014 2015 2014 2015 2014 Foreign currency exchange contracts $ 26 $ 34 COGS $ 40 $ 5 OIE $ (3 ) $ (4 ) Foreign currency exchange contracts (6 ) 4 SGA expense (2 ) 3 OIE — — Interest rate contracts (9 ) (69 ) Interest expense (3 ) 9 N/A — — Commodity contracts (3 ) (4 ) COGS (12 ) (7 ) OIE — — Total $ 8 $ (35 ) $ 23 $ 10 $ (3 ) $ (4 ) (a) Includes the ineffective portion and amount excluded from effectiveness testing. Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) recognized in AOCI 2015 2014 Foreign currency denominated long-term debt $ 70 $ 86 Total $ 70 $ 86 Derivatives not designated as hedging instruments (millions) Location of gain (loss) recognized in income Gain (loss) recognized in income 2015 2014 Foreign currency exchange contracts COGS $ 16 $ — Foreign currency exchange contracts OIE 8 1 Interest rate contracts Interest expense — (4 ) Commodity contracts COGS (63 ) (73 ) Commodity contracts SGA (5 ) (5 ) Total $ (44 ) $ (81 ) During the next 12 months, the Company expects $14 million of net deferred losses reported in accumulated other comprehensive income (AOCI) at January 2, 2016 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 falls 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 January 2, 2016 was $14 million . If the credit-risk-related contingent features were triggered as of January 2, 2016, the Company would be required to post collateral of $14 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 January 2, 2016 triggered by credit-risk-related contingent features. Other fair value measurements 2015 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 4 for more information regarding Project K. During 2015, long-lived assets of $31 million related to a manufacturing facility in the Company's North America Other reportable segment, were written down to an estimated fair value of $13 million due to Project K activities. The Company's calculation of the fair value of these long-lived assets is based on level 3 inputs, including market comparables, market trends and the condition of the assets. Additionally during 2015, the Company moved from the CENCOEX foreign currency official exchange rate to the SIMADI foreign currency exchange rate for purposes of remeasuring the financial statements of its Venezuelan subsidiary. In connection with this change in foreign currency exchange rates, the Company also evaluated the carrying value of the long lived assets related to its Venezuelan subsidiary. See Note 15 for more information regarding Venezuela. During 2015, long-lived assets with a carrying value of $51 million were written down to an estimated fair value of $2 million . The Company's calculation of the fair value of these long-lived assets is based on level 3 inputs, including market comparables, market trends and the condition of the assets. 2014 Fair Value Measurements on a Nonrecurring Basis During 2014, long-lived assets of $24 million , related to a manufacturing facility in the Company’s 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. 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 January 2, 2016: (millions) Fair Value Carrying Value Current maturities of long-term debt $ 1,266 $ 1,266 Long-term debt 5,635 5,289 Total $ 6,901 $ 6,555 Counterparty credit risk concentration The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative financial and commodity contracts. Management believes a concentration of credit risk with respect to derivative counterparties is limited due to the credit ratings and use of master netting and reciprocal collateralization agreements with the counterparties and the use of exchange-traded commodity contracts. Master netting agreements apply in situations where the Company executes multiple contracts with the same counterparty. If these counterparties fail to perform according to the terms of derivative contracts, this could result in a loss to the Company. As of January 2, 2016, there were no counterparties that represented a significant concentration of credit risk to the Company. For certain derivative contracts, reciprocal collateralization agreements with counterparties call for the posting of collateral in the form of cash, treasury securities or letters of credit if a fair value loss position to the Company or its counterparties exceeds a certain amount. As of January 2, 2016, the Company had no collateral posting requirements related to reciprocal collateralization agreements. As of January 2, 2016, the Company posted $51 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 29% of consolidated trade receivables at January 2, 2016. Refer to Note 1 for disclosures regarding the Company’s accounting policies for derivative instruments. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 02, 2016 | |
Loss Contingencies [Abstract] | |
Contingencies Disclosure [Text Block] | CONTINGENCIES The Company is subject to various legal proceedings, claims, and governmental inspections or investigations in the ordinary course of business covering matters such as general commercial, governmental regulations, antitrust and trade regulations, product liability, environmental, intellectual property, workers’ compensation, employment and other actions. These matters are subject to uncertainty and the outcome is not predictable with assurance. The Company uses a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability and product liability. The Company has established accruals for certain matters where losses are deemed probable and reasonably estimable. There are other claims and legal proceedings pending against the Company for which accruals have not been established. It is reasonably possible that some of these matters could result in an unfavorable judgment against the Company and could require payment of claims in amounts that cannot be estimated at January 2, 2016. Based upon current information, management does not expect any of the claims or legal proceedings pending against the Company to have a material impact on the Company’s consolidated financial statements. In connection with the Company’s previous labor negotiations with the union representing the work-force at its Memphis, TN cereal production facility, the National Labor Relations Board (NLRB) 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. In August 2014, an NLRB Administrative Law Judge dismissed the complaint that initiated the underlying litigation. In May 2015, the NLRB reversed the decision of the Administrative Law Judge in favor of the union. The Company is appealing this decision and the case continues. This litigation 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 January 2, 2016 , the Company has not recorded a liability related to this matter as an adverse outcome is not considered probable. The Company will continue to evaluate the likelihood of potential outcomes for this case as the litigation continues. |
Venezuela
Venezuela | 12 Months Ended |
Jan. 02, 2016 | |
Foreign Currency [Abstract] | |
Foreign Currency Disclosure [Text Block] | VENEZUELA Venezuela is considered a highly inflationary economy. As such, the functional currency for the Company's operations in Venezuela is the U.S. dollar, which in turn, requires bolivar denominated monetary assets and liabilities to be remeasured into U.S. dollars using an exchange rate at which such balances could be settled as of the balance sheet date. In addition, revenues and expenses are recorded in U.S. dollars at an appropriate rate on the date of the transaction. Gains and losses resulting from the remeasurement of the bolivar denominated monetary assets and liabilities are recorded in earnings. In February 2013, the Venezuelan government announced a 46.5% devaluation of the official CADIVI (now named CENCOEX) exchange rate from 4.3 bolivars to 6.3 bolivars to the U.S. dollar. Additionally, the Transaction System for Foreign Currency Denominated Securities (SITME), used between May 2010 and January 2013 to translate the Company’s Venezuelan subsidiary’s financial statements to U.S. dollars, was eliminated. Accordingly, in February 2013 the Company began using the CENCOEX exchange rate to translate the Company’s Venezuelan subsidiary’s financial statements to U.S. dollars and in 2013, the Company recognized a $15 million charge as a result of the devaluation of the CENCOEX exchange rate. From February 2013 through July 4, 2015, the Company used the CENCOEX official rate, which was 6.3 bolivars to the U.S. dollar, to remeasure its Venezuelan subsidiary’s financial statements to U.S. dollars. The CENCOEX official rate is presently restricted toward goods and services for industry sectors considered essential, which are primarily food, medicines and a few others and was still 6.3 bolivars to the U.S. dollar at January 2, 2016. During 2013, the Venezuelan government announced a complementary currency exchange system, SICAD, followed by the establishment of another floating rate exchange system (referred to as SICAD II) during 2014. In February 2015, the Venezuelan government announced the addition of a new foreign currency exchange system referred to as the Marginal Currency System, or SIMADI, along with the merger of the SICAD II system with SICAD. As of January 2, 2016, the published SICAD and SIMADI rates offered were 13.5 and 200.0 bolivars to the U.S. dollar, respectively. The Company continues to manufacture and sell products in Venezuela as well as import limited raw materials, packaging and spare parts, where the Company has a history of successfully exchanging bolivars for U.S. dollars to pay certain vendors as required under the terms of the related purchasing arrangements. While the Company continues to qualify for participation in CENCOEX at the official rate, there has been a continued reduction in the level of U.S. dollars available to exchange, in part due to recent declines in the price of oil and the overall decline of the macroeconomic environment within the country. During 2015, the Company has experienced an increase in the amount of time it takes to exchange bolivars for U.S. dollars through the CENCOEX exchange. Given this economic backdrop, and upon review of U.S. dollar cash needs in the Company's Venezuela operations as of the quarter ended July 4, 2015, the Company concluded that it is no longer able to obtain sufficient U.S. dollars on a timely basis through the CENCOEX exchange to support its Venezuela operations resulting in a decision to remeasure our Venezuela subsidiary's financial statements using the SIMADI rate. The Company has evaluated all of the facts and circumstances surrounding its Venezuelan business and determined that as of January 2, 2016, the SIMADI rate continues to be the appropriate rate to use for remeasuring its Venezuelan subsidiary’s financial statements. In connection with the change in rates on July 4, 2015, the Company evaluated the carrying value of its non-monetary assets for impairment and lower of cost or market adjustments. As a result of moving from the CENCOEX official rate to the SIMADI rate, the Company recorded pre-tax charges totaling $152 million in the quarter ended July 4, 2015. Of the total charges, $100 million was recorded in COGS, $3 million was recorded in SGA, and $49 million was recorded in Other income (expense), net. These charges consist of $47 million related to the remeasurement of net monetary assets denominated in Venezuelan bolivar at the SIMADI exchange rate (recorded in Other income (expense), net), $56 million related to reducing inventory to the lower of cost or market (recorded in COGS) and $49 million related to the impairment of long-lived assets in Venezuela (recorded primarily in COGS). For the year ended January 2, 2016, Venezuela represented approximately 2% of total net sales as the CENCOEX official rate was used to remeasure the Venezuelan subsidiary’s income statement through July 4, 2015. As of January 2, 2016, the Company’s net monetary assets denominated in the Venezuelan bolivar were immaterial after applying the SIMADI exchange rate. As of January 3, 2015 the Company’s net monetary assets denominated in the Venezuelan bolivar were approximately $100 million using the CENCOEX official rate. The Company continues to monitor and actively manage its investment and exposures in Venezuela. The Company’s Venezuelan business does not rely heavily on imports and when items are imported, they are largely exchanged at the CENCOEX official rate however, the Company considers it reasonably possible to utilize alternate exchange mechanisms in the future. The Company is continuing to take actions to further reduce its reliance on imports in order to run its operations without the need for U.S. dollars, including the elimination of imported ingredients where possible and developing a local supply for parts and materials. Less than 2% of the total raw material needs of the Company's Venezuela operations are imported. The Company will continue to monitor local conditions and its ability to obtain U.S. dollars through the various exchange mechanisms available to determine the appropriate rate for remeasurement. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL DATA (unaudited) Net sales Gross profit (millions) 2015 2014 2015 2014 First $ 3,556 $ 3,742 $ 1,245 $ 1,504 Second 3,498 3,685 1,241 1,411 Third 3,329 3,639 1,233 1,292 Fourth 3,142 3,514 962 856 $ 13,525 $ 14,580 $ 4,681 $ 5,063 Net income attributable to Kellogg Company Per share amounts (millions) 2015 2014 2015 2014 Basic Diluted Basic Diluted First $ 227 $ 406 $ 0.64 $ 0.64 $ 1.13 $ 1.12 Second 223 295 0.63 0.63 0.82 0.82 Third 205 224 0.58 0.58 0.63 0.62 Fourth (41 ) (293 ) (0.12 ) (0.12 ) (0.82 ) (0.82 ) $ 614 $ 632 The principal market for trading Kellogg shares is the New York Stock Exchange (NYSE). At January 2, 2016 , the closing price (on the NYSE) was $ 72.27 and there were 35,704 shareholders of record. Dividends paid per share and the quarterly price ranges on the NYSE during the last two years were: Dividend per share Stock price 2015 — Quarter High Low First $ 0.49 $ 69.84 $ 61.97 Second 0.49 66.38 61.31 Third 0.50 69.77 62.74 Fourth 0.50 73.51 66.03 $ 1.98 2014 — Quarter First $ 0.46 $ 62.13 $ 56.90 Second 0.46 69.39 62.62 Third 0.49 66.41 59.83 Fourth 0.49 67.24 59.70 $ 1.90 During 2015 , the Company recorded the following charges / (gains) in operating profit: 2015 (millions) First Second Third Fourth Full Year Restructuring and cost reduction charges $ 68 $ 90 $ 85 $ 80 $ 323 (Gains) / losses on mark-to-market adjustments 67 (35 ) 27 387 446 $ 135 $ 55 $ 112 $ 467 $ 769 During 2014 , the Company recorded the following charges / (gains) in operating profit: 2014 (millions) First Second Third Fourth Full Year Restructuring and cost reduction charges $ 54 $ 78 $ 92 $ 74 $ 298 (Gains) / losses on mark-to-market adjustments (116 ) 12 66 822 784 $ (62 ) $ 90 $ 158 $ 896 $ 1,082 |
Reportable Segments
Reportable Segments | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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. Beginning in the first quarter of 2015, a new Kashi operating segment was established in order to optimize future growth potential of this business. This operating segment is included in the North America Other reportable segment. Previously, results of Kashi were included within the U.S. Morning Foods, U.S. Snacks, and the U.S. Frozen operating segments. Goodwill was reallocated between operating segments on a relative fair value basis. In conjunction with the reallocation of goodwill, an impairment analysis was performed. No impairment of the operating segments was noted. Reportable segment results of prior periods have been recast to conform to the current presentation. The Company currently has the following reportable segments: U.S. Morning Foods; U.S. Snacks; U.S. Specialty; North America Other; Europe; Latin America; and Asia Pacific. The Company manages its operations through 9 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. The U.S. Morning Foods operating segment includes cereal, toaster pastries, health and wellness bars, and beverages. U.S. Snacks includes cookies, crackers, cereal bars, savory snacks and fruit-flavored snacks. U.S. Specialty primarily represents food away from home channels, including food service, convenience, vending, Girl Scouts and food manufacturing. The food service business is mostly non-commercial, serving institutions such as schools and hospitals. The convenience business includes traditional convenience stores as well as alternate retailing outlets. North America Other includes the U.S. Frozen, Kashi 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 3 remaining reportable segments are based on geographic location — Europe which consists principally of European countries; Latin America which consists of Central and South America and includes Mexico; and Asia Pacific which consists of Sub-Saharan 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. (millions) 2015 2014 2013 Net sales U.S. Morning Foods $ 2,992 $ 3,108 $ 3,195 U.S. Snacks 3,234 3,329 3,379 U.S. Specialty 1,181 1,198 1,202 North America Other 1,687 1,864 1,940 Europe 2,497 2,869 2,843 Latin America 1,015 1,205 1,195 Asia Pacific 919 1,007 1,038 Consolidated $ 13,525 $ 14,580 $ 14,792 Operating profit U.S. Morning Foods $ 474 $ 479 $ 469 U.S. Snacks 385 364 424 U.S. Specialty 260 266 265 North America Other 178 295 314 Europe 247 232 249 Latin America 9 169 157 Asia Pacific 54 53 67 Total Reportable Segments 1,607 1,858 1,945 Corporate (516 ) (834 ) 892 Consolidated $ 1,091 $ 1,024 $ 2,837 Depreciation and amortization (a) U.S. Morning Foods $ 123 $ 136 $ 181 U.S. Snacks 135 166 144 U.S. Specialty 11 10 8 North America Other 74 32 30 Europe 120 92 84 Latin America 28 32 29 Asia Pacific 29 31 40 Total Reportable Segments 520 499 516 Corporate 14 4 16 Consolidated $ 534 $ 503 $ 532 (a) Includes asset impairment charges as discussed in Note 13 . Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by Management for the Company’s internationally-based reportable segments as shown below. (millions) 2015 2014 2013 Interest expense North America Other $ 5 $ 6 $ 6 Europe 5 5 6 Latin America 5 3 1 Asia Pacific 2 1 3 Corporate 210 194 219 Consolidated $ 227 $ 209 $ 235 Income taxes Europe $ 10 $ (3 ) $ 4 Latin America 34 42 35 Asia Pacific — (1 ) 6 Corporate & North America 115 148 747 Consolidated $ 159 $ 186 $ 792 Management reviews balance sheet information, including total assets, based on geography. For all North American-based operating segments, balance sheet information is reviewed by Management in total and not on an individual operating segment basis. (millions) 2015 2014 2013 Total assets North America $ 10,363 $ 10,489 $ 10,643 Europe 3,742 2,893 3,007 Latin America 587 905 1,052 Asia Pacific 1,106 1,111 1,049 Corporate 1,198 1,796 2,583 Elimination entries (1,731 ) (2,041 ) (2,860 ) Consolidated $ 15,265 $ 15,153 $ 15,474 Additions to long-lived assets North America $ 342 $ 295 $ 296 Europe 110 129 182 Latin America 23 31 70 Asia Pacific 76 120 85 Corporate 2 7 4 Consolidated $ 553 $ 582 $ 637 The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 21% of consolidated net sales during 2015 , 2014 , and 2013 , comprised principally of sales within the United States. Supplemental geographic information is provided below for net sales to external customers and long-lived assets: (millions) 2015 2014 2013 Net sales United States $ 8,560 $ 8,876 $ 9,060 All other countries 4,965 5,704 5,732 Consolidated $ 13,525 $ 14,580 $ 14,792 Long-lived assets United States $ 2,220 $ 2,283 $ 2,343 All other countries 1,401 1,486 1,513 Consolidated $ 3,621 $ 3,769 $ 3,856 Supplemental product information is provided below for net sales to external customers: (millions) 2015 2014 2013 Cereal $ 5,871 $ 6,570 $ 6,753 Snacks 6,698 7,002 7,011 Frozen 956 1,008 1,028 Consolidated $ 13,525 $ 14,580 $ 14,792 |
Supplemental Financial Statemen
Supplemental Financial Statement Data | 12 Months Ended |
Jan. 02, 2016 | |
Supplemental Financial Statement Data [Abstract] | |
Supplemental Financial Statement Data [Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT DATA Consolidated Statement of Income (millions) 2015 2014 2013 Research and development expense $ 193 $ 199 $ 199 Advertising expense $ 898 $ 1,094 $ 1,131 Advertising and consumer promotions are included in total brand-building, a measure that the Company uses to determine the level of investment it makes to support its brands. Advertising has declined in 2015 as a result of foreign currency translation as well as the implementation of efficiency and effectiveness programs including a shift in investments to non-advertising consumer promotion programs. Total brand-building investment has declined in 2015 approximately 50 basis points as a percentage of net sales. Brand building is down including shifts of investment into other areas such as food, the evolving shift in media investment from TV to digital, and efficiency and effectiveness benefits. Consolidated Balance Sheet (millions) 2015 2014 Trade receivables $ 1,169 $ 1,101 Allowance for doubtful accounts (8 ) (7 ) Refundable income taxes 27 16 Other receivables 156 166 Accounts receivable, net $ 1,344 $ 1,276 Raw materials and supplies $ 315 $ 327 Finished goods and materials in process 935 952 Inventories $ 1,250 $ 1,279 Deferred income taxes $ 227 $ 184 Other prepaid assets 164 158 Other current assets $ 391 $ 342 Land $ 142 $ 105 Buildings 2,076 2,154 Machinery and equipment 5,617 6,017 Capitalized software 328 327 Construction in progress 694 692 Accumulated depreciation (5,236 ) (5,526 ) Property, net $ 3,621 $ 3,769 Other intangibles $ 2,315 $ 2,338 Accumulated amortization (47 ) (43 ) Other intangibles, net $ 2,268 $ 2,295 Pension $ 231 $ 250 Other 485 527 Other assets $ 716 $ 777 Accrued income taxes $ 42 $ 39 Accrued salaries and wages 325 320 Accrued advertising and promotion 447 446 Other 548 596 Other current liabilities $ 1,362 $ 1,401 Nonpension postretirement benefits $ 77 $ 82 Other 391 418 Other liabilities $ 468 $ 500 Allowance for doubtful accounts (millions) 2015 2014 2013 Balance at beginning of year $ 7 $ 5 $ 6 Additions charged to expense 4 6 2 Doubtful accounts charged to reserve (3 ) (4 ) (3 ) Balance at end of year $ 8 $ 7 $ 5 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Basis of accounting [Policy Text Block] | The consolidated financial statements include the accounts of the Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest and the accounts of the variable interest entities (VIEs) of which Kellogg Company is the primary beneficiary (Kellogg or the Company). The Company continually evaluates its involvement with VIEs to determine whether it has variable interests and is the primary beneficiary of the VIE. When these criteria are met, the Company is required to consolidate the VIE. The Company’s share of earnings or losses of nonconsolidated affiliates is included in its consolidated operating results using the equity method of accounting when it is able to exercise significant influence over the operating and financial decisions of the affiliate. The Company uses the cost method of accounting if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. Intercompany balances and transactions are eliminated. The Company’s fiscal year normally ends on the Saturday closest to December 31 and as a result, a 53rd week is added approximately every sixth year. The Company’s 2015 and 2013 fiscal years each contained 52 weeks and ended on January 2, 2016 and December 28, 2013 , respectively. The Company’s 2014 fiscal year ended on January 3, 2015 , and included a 53 rd week. While quarters normally consist of 13-week periods, the fourth quarter of fiscal 2014 included a 14 th week. |
Use of estimates [Policy Text Block] | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. |
Cash and cash equivalents [Policy Text Block] | Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. |
Accounts receivables [Policy Text Block] | Accounts receivable consists principally of trade receivables, which are recorded at the invoiced amount, net of allowances for doubtful accounts and prompt payment discounts. Trade receivables do not bear interest. The allowance for doubtful accounts represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances and other specific account data. Account balances are written off against the allowance when management determines the receivable is uncollectible. The Company does not have off-balance sheet credit exposure related to its customers. |
Inventories [Policy Text Block] | Inventories are valued at the lower of cost or market. Cost is determined on an average cost basis. |
Property [Policy Text Block] | The Company’s property consists mainly of plants and equipment used for manufacturing activities. These assets are recorded at cost and depreciated over estimated useful lives using straight-line methods for financial reporting and accelerated methods, where permitted, for tax reporting. Major property categories are depreciated over various periods as follows (in years): manufacturing machinery and equipment 5 - 30 ; office equipment 4 - 5 ; computer equipment and capitalized software 3 - 7 ; building components 15 - 25 ; building structures 30 - 50 . Cost includes interest associated with significant capital projects. Plant and equipment are reviewed for impairment when conditions indicate that the carrying value may not be recoverable. Such conditions include an extended period of idleness or a plan of disposal. Assets to be disposed of at a future date are depreciated over the remaining period of use. Assets to be sold are written down to realizable value at the time the assets are being actively marketed for sale and a sale is expected to occur within one year. As of year-end 2015 and 2014 , the carrying value of assets held for sale was insignificant. |
Goodwill and other intangible assets [Policy Text Block] | Goodwill and indefinite-lived intangibles are not amortized, but are tested at least annually for impairment of value and whenever events or changes in circumstances indicate the carrying amount of the asset may be impaired. An intangible asset with a finite life is amortized on a straight-line basis over the estimated useful life. For the goodwill impairment test, the fair value of the reporting units are estimated based on market multiples. This approach employs market multiples based on earnings before interest, taxes, depreciation and amortization and earnings for companies that are comparable to the Company’s reporting units. In the event the fair value determined using the market multiple approach is close to carrying value, the Company may supplement the fair value determination using discounted cash flows. The assumptions used for the impairment test are consistent with those utilized by a market participant performing similar valuations for the Company’s reporting units. Similarly, impairment testing of other intangible assets requires a comparison of carrying value to fair value of that particular asset. Fair values of non-goodwill intangible assets are based primarily on projections of future cash flows to be generated from that asset. For instance, cash flows related to a particular trademark would be based on a projected royalty stream attributable to branded product sales, discounted at rates consistent with rates used by market participants. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. |
Accounts payable [Policy Text Block] | 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 payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal in entering into this agreement is to capture overall supplier savings, in the form of payment terms or vendor funding, created by facilitating suppliers’ ability to sell payment obligations, 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 January 2, 2016 , $501 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $407 million of those payment obligations to participating financial institutions. As of January 3, 2015 , $236 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $184 million of those payment obligations to participating financial institutions. |
Revenue recognition [Policy Text Block] | The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable provisions for discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. |
Advertising and promotion [Policy Text Block] | The Company expenses production costs of advertising the first time the advertising takes place. Advertising expense is classified in selling, general and administrative (SGA) expense. The Company classifies promotional payments to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. The cost of promotional package inserts is recorded in cost of goods sold (COGS). Other types of consumer promotional expenditures are recorded in SGA expense. |
Research and development [Policy Text Block] | The costs of research and development (R&D) are expensed as incurred and are classified in SGA expense. R&D includes expenditures for new product and process innovation, as well as significant technological improvements to existing products and processes. The Company’s R&D expenditures primarily consist of internal salaries, wages, consulting, and supplies attributable to time spent on R&D activities. Other costs include depreciation and maintenance of research facilities and equipment, including assets at manufacturing locations that are temporarily engaged in pilot plant activities. |
Share-based compensation [Policy Text Block] | The Company uses stock-based compensation, including stock options, restricted stock, restricted stock units, and executive performance shares, to provide long-term performance incentives for its global workforce. The Company classifies pre-tax stock compensation expense principally in SGA expense within its corporate operations. Expense attributable to awards of equity instruments is recorded in capital in excess of par value in the Consolidated Balance Sheet. Certain of the Company’s stock-based compensation plans contain provisions that accelerate vesting of awards upon retirement, disability, or death of eligible employees and directors. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company recognizes compensation cost for stock option awards that have a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Corporate income tax benefits realized upon exercise or vesting of an award in excess of that previously recognized in earnings (“windfall tax benefit”) is recorded in other financing activities in the Consolidated Statement of Cash Flows. Realized windfall tax benefits are credited to capital in excess of par value in the Consolidated Balance Sheet. Realized shortfall tax benefits (amounts which are less than that previously recognized in earnings) are first offset against the cumulative balance of windfall tax benefits, if any, and then charged directly to income tax expense. The Company currently has sufficient cumulative windfall tax benefits to absorb arising shortfalls, such that earnings were not affected during the periods presented. Correspondingly, the Company includes the impact of pro forma deferred tax assets (i.e., the “as if” windfall or shortfall) for purposes of determining assumed proceeds in the treasury stock calculation of diluted earnings per share. |
Income taxes [Policy Text Block] | The Company recognizes uncertain tax positions based on a benefit recognition model. Provided that the tax position is deemed more likely than not of being sustained, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. The tax position is derecognized when it is no longer more likely than not of being sustained. The Company classifies income tax-related interest and penalties as interest expense and SGA expense, respectively, on the Consolidated Statement of Income. The current portion of the Company’s unrecognized tax benefits is presented in the Consolidated Balance Sheet in other current assets and other current liabilities, and the amounts expected to be settled after one year are recorded in other assets and other liabilities. Income taxes are provided on the portion of foreign earnings that is expected to be remitted to and taxable in the United States. |
Derivatives instruments[Policy Text Block] | The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in the Consolidated Statement of Income in other income (expense), net (OIE). In the Consolidated Statement of Cash Flows, settlements of cash flow and fair value hedges are classified as an operating activity; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instrument. Cash flow hedges. Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in other comprehensive income until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive income (loss) (AOCI) to the Consolidated Statement of Income on the same line item as the underlying transaction. Fair value hedges. Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item. Net investment hedges. Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments in AOCI. Derivatives not designated for hedge accounting. Gains and losses on these instruments are recorded in the Consolidated Statement of Income, on the same line item as the underlying hedged item. Other contracts. The Company periodically enters into foreign currency forward contracts and options to reduce volatility in the translation of foreign currency earnings to U.S. dollars. Gains and losses on these instruments are recorded in OIE, generally reducing the exposure to translation volatility during a full-year period. Foreign currency exchange risk. The Company is exposed to fluctuations in foreign currency cash flows related primarily to third-party purchases, intercompany transactions and when applicable, nonfunctional currency denominated third-party debt. The Company is also exposed to fluctuations in the value of foreign currency investments in subsidiaries and cash flows related to repatriation of these investments. Additionally, the Company is exposed to volatility in the translation of foreign currency denominated earnings to U.S. dollars. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contracts, options, and currency swaps to reduce fluctuations in long or short currency positions. Forward contracts and options are generally less than 18 months duration. Currency swap agreements are established in conjunction with the term of underlying debt issues. For foreign currency cash flow and fair value hedges, the assessment of effectiveness is generally based on changes in spot rates. Changes in time value are reported in OIE. Interest rate risk. The Company is exposed to interest rate volatility with regard to future issuances of fixed rate debt and existing and future issuances of variable rate debt. The Company periodically uses interest rate swaps, including forward-starting swaps, to reduce interest rate volatility and funding costs associated with certain debt issues, and to achieve a desired proportion of variable versus fixed rate debt, based on current and projected market conditions. Fixed-to-variable interest rate swaps are accounted for as fair value hedges and the assessment of effectiveness is based on changes in the fair value of the underlying debt, using incremental borrowing rates currently available on loans with similar terms and maturities. Price risk. The Company is exposed to price fluctuations primarily as a result of anticipated purchases of raw and packaging materials, fuel, and energy. The Company has historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months. Certain commodity contracts are accounted for as cash flow hedges, while others are marked to market through earnings. The assessment of effectiveness for exchange-traded instruments is based on changes in futures prices. The assessment of effectiveness for over-the-counter transactions is based on changes in designated indices. |
Pension benefits, nonpension postretirement and postemployment benefits [Policy Text Block] | The Company sponsors a number of U.S. and foreign plans to provide pension, health care, and other welfare benefits to retired employees, as well as salary continuance, severance, and long-term disability to former or inactive employees. The recognition of benefit expense is based on actuarial assumptions, such as discount rate, long-term rate of compensation increase, long-term rate of return on plan assets and health care cost trend rate, and is reported in COGS and SGA expense on the Consolidated Statement of Income. Postemployment benefits. The Company recognizes an obligation for postemployment benefit plans that vest or accumulate with service. Obligations associated with the Company’s postemployment benefit plans, which are unfunded, are included in other current liabilities and other liabilities on the Consolidated Balance Sheet. All gains and losses are recognized over the average remaining service period of active plan participants. Postemployment benefits that do not vest or accumulate with service or benefits to employees in excess of those specified in the respective plans are expensed as incurred. Pension and nonpension postretirement benefits. The Company recognizes actuarial gains and losses in operating results in the year in which they occur. Experience gains and losses are recognized annually as of the measurement date, which is the Company’s fiscal year-end, or when remeasurement is otherwise required under generally accepted accounting principles. The Company uses the fair value of plan assets to calculate the expected return on plan assets. Reportable segments are allocated service cost and amortization of prior service cost. All other components of pension and postretirement benefit expense, including interest cost, expected return on assets, and experience gains and losses are considered unallocated corporate costs and are not included in the measure of reportable segment operating results. See Note 17 for more information on reportable segments. Management reviews the Company’s expected long-term rates of return annually; however, the benefit trust investment performance for one particular year does not, by itself, significantly influence this evaluation. The expected rates of return are generally not revised provided these rates fall between the 25th and 75th percentile of expected long-term returns, as determined by the Company’s modeling process. For defined benefit pension and postretirement plans, the Company records the net overfunded or underfunded position as a pension asset or pension liability on the Consolidated Balance Sheet. |
New Accounting Pronouncements, Policy [Policy Text Block] | Practical expedient for the measurement date of an employer's defined benefit obligation and plan assets. In April 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to provide a practical expedient for the measurement date of an employer’s defined benefit obligation and plan assets. For an entity with a fiscal year-end that does not coincide with a month-end, the amendments in this Update provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently to all plans from year to year. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Entities should apply the new guidance on a prospective basis. The Company early adopted the updated standard when measuring the fair value of plan assets at the end of its 2015 fiscal year with no impact to the Consolidated Financial Statements. Presentation of an unrec ognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. In July 2013, the FASB issued an 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 in 2014 with no significant impact to the Consolidated Financial Statements. Accounting standards to be adopted in future periods Recognition and measurement of financial assets and liabilities. In January 2016, the FASB issued an ASU which primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption can be elected for all financial statements of fiscal years and interim periods that have not yet been issued or that have not yet been made available for issuance. Entities should apply the update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The Company will adopt the updated standard in the first quarter of 2018. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Balance sheet classification of deferred taxes. In November 2015, the FASB issued an ASU to simplify the presentation of deferred income taxes. The ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Entities should apply the new guidance either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating when it will adopt the updated standard and whether to use the prospective or retrospective method. The year-end 2015 balance for current deferred tax assets and liabilities was $227 million and $(9) million , respectively. Please see Note 12 for more information on the Company’s deferred tax assets and liabilities. Simplifying the accounting for measurement-period adjustments. In September 2015, the FASB issued an ASU to simplify the accounting for measurement-period adjustments for items in a business combination. The ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Entities should apply the new guidance prospectively to adjustments to provisional amounts that occur after the effective date of the ASU with earlier application permitted for financial statements that have not been issued. The Company will adopt the updated standard in the first quarter of 2016. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Simplifying the presentation of debt issuance costs. In April 2015, the FASB issued an ASU to simplify the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Entities should apply the new guidance on a retrospective basis. The Company will adopt the updated standard in the first quarter of 2016. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Customer's accounting for fees paid in a cloud computing arrangement. In April 2015, the FASB issued an ASU to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. Entities should apply the new guidance either; 1) prospectively to all arrangements entered into or materially modified after the effective date or 2) retrospectively. The Company will adopt the updated standard prospectively in the first quarter of 2016. The Company does not expect the adoption of this guidance to have a significant impact on its financial statements. Revenue from contracts with customers. In May 2014, the FASB issued an 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 to 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. When the ASU was originally issued it was effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption was not permitted. On July 9, 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The updated standard will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Entities will be permitted to adopt the new revenue standard early, but not before the original effective date. 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 2018. 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 Intangible27
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Acquisitions, Goodwill and Other Intangibles [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The acquired assets and assumed liabilities include the following: (millions) January 18, Current assets $ 21 Property 90 Goodwill 81 Intangible assets and other 46 Current liabilities (24 ) Other non current liabilities, primarily deferred taxes (33 ) Non-controlling interests (20 ) $ 161 |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill are presented in the following table. Changes in the carrying amount of goodwill (millions) U.S. Morning Foods U.S. Snacks U.S. Specialty North America Other Europe Latin America Asia Pacific Consoli- dated December 28, 2013* $ 131 $ 3,589 $ 82 $ 470 $ 452 $ 89 $ 238 $ 5,051 Currency translation adjustment — — — (5 ) (63 ) (6 ) (6 ) (80 ) January 3, 2015* $ 131 $ 3,589 $ 82 $ 465 $ 389 $ 83 $ 232 $ 4,971 Additions — — — — 81 — — 81 VIE deconsolidation — (21 ) — — — — — (21 ) Currency translation adjustment — — — (9 ) (39 ) (7 ) (8 ) (63 ) January 2, 2016 $ 131 $ 3,568 $ 82 $ 456 $ 431 $ 76 $ 224 $ 4,968 * In conjunction with the establishment of the Kashi operating segment, included within the North America Other reportable segment, certain intangible assets were reallocated. All prior period balances were updated to conform with current presentation. |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets subject to amortization (millions) Gross carrying amount U.S. Morning Foods U.S. Snacks U.S. Specialty North America Other Europe Latin America Asia Pacific Consoli- dated December 28, 2013 $ 8 $ 65 $ — $ 5 $ 42 $ 6 $ 10 $ 136 Currency translation adjustment — — — — (4 ) — — (4 ) January 3, 2015 $ 8 $ 65 $ — $ 5 $ 38 $ 6 $ 10 $ 132 Additions — — — — 9 — — 9 VIE deconsolidation — (23 ) — — — — — (23 ) Currency translation adjustment — — — — (2 ) — — (2 ) January 2, 2016 $ 8 $ 42 $ — $ 5 $ 45 $ 6 $ 10 $ 116 Accumulated Amortization December 28, 2013 $ 8 $ 11 $ — $ 4 $ 4 $ 6 $ 1 $ 34 Amortization — 5 — — 3 — 1 9 January 3, 2015 $ 8 $ 16 $ — $ 4 $ 7 $ 6 $ 2 $ 43 VIE deconsolidation — (4 ) — — — — — (4 ) Amortization (a) — 4 — — 4 — — 8 January 2, 2016 $ 8 $ 16 $ — $ 4 $ 11 $ 6 $ 2 $ 47 Intangible assets subject to amortization, net December 28, 2013 $ — $ 54 $ — $ 1 $ 38 $ — $ 9 $ 102 Amortization — (5 ) — — (3 ) — (1 ) (9 ) Currency translation adjustment — — — — (4 ) — — (4 ) January 3, 2015 $ — $ 49 $ — $ 1 $ 31 $ — $ 8 $ 89 Additions — — — — 9 — — 9 VIE deconsolidation — (19 ) — — — — — (19 ) Amortization (a) — (4 ) — — (4 ) — — (8 ) Currency translation adjustment — — — — (2 ) — — (2 ) January 2, 2016 $ — $ 26 $ — $ 1 $ 34 $ — $ 8 $ 69 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $7 million per year. |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Intangible assets not subject to amortization (millions) U.S. Morning Foods U.S. Snacks U.S. Specialty North America Other Europe Latin America Asia Pacific Consoli- dated December 28, 2013* $ — $ 1,625 $ — $ 158 $ 482 $ — $ — $ 2,265 Currency translation adjustment — — — — (59 ) — — (59 ) January 3, 2015* $ — $ 1,625 $ — $ 158 $ 423 $ — $ — $ 2,206 Additions — — — — 36 — — 36 Currency translation adjustment — — — — (43 ) — — (43 ) January 2, 2016 $ — $ 1,625 $ — $ 158 $ 416 $ — $ — $ 2,199 * In conjunction with the establishment of the Kashi operating segment, included within the North America Other reportable segment, certain intangible assets were reallocated. All prior period balances were updated to conform with current presentation. |
Investment in Unconsolidated 28
Investment in Unconsolidated Entities Investment in Unconsolidated Entities (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Summarized combined financial information for the Company’s investments in unconsolidated entities is as follows (on a 100% basis): Statement of Operations (since time of investment in millions) Period ended January 2, 2016 Net sales $ 289 Gross profit $ 44 Income before income taxes $ 12 Net income $ 5 Balance sheets January 2, 2016 Current assets $ 78 Non-current assets $ 57 Current liabilities $ (81 ) Non-current liabilities $ (25 ) |
Restructuring and Cost Reduct29
Restructuring and Cost Reduction Activities Restructuring and Cost Reduction Activities (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Cost Reduction Activities | Program costs to date (millions) 2015 2014 2013 January 2, 2016 Employee related costs $ 62 $ 90 $ 114 $ 259 Asset related costs 103 37 10 146 Asset impairment 18 21 70 105 Other costs 140 150 56 319 Total $ 323 $ 298 $ 250 $ 829 Program costs to date (millions) 2015 2014 2013 January 2, 2016 U.S. Morning Foods $ 58 $ 60 $ 109 $ 218 U.S. Snacks 50 57 30 126 U.S. Specialty 5 3 5 11 North America Other 63 18 11 90 Europe 74 80 27 173 Latin America 4 8 5 16 Asia Pacific 13 37 32 74 Corporate 56 35 31 121 Total $ 323 $ 298 $ 250 $ 829 |
Schedule of Exit Cost Reserves | (millions) Employee Related Costs Asset Impairment Asset Related Costs Other Costs Total Liability as of December 28, 2013 $ 66 $ — $ — $ 12 $ 78 2014 restructuring charges 90 21 37 150 298 Cash payments (84 ) — (24 ) (148 ) (256 ) Non-cash charges and other 24 (21 ) (13 ) — (10 ) Liability as of January 3, 2015 $ 96 $ — $ — $ 14 $ 110 2015 restructuring charges 62 18 103 140 323 Cash payments (116 ) — (34 ) (121 ) (271 ) Non-cash charges and other 13 (18 ) (69 ) — (74 ) Liability as of January 2, 2016 $ 55 $ — $ — $ 33 $ 88 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Equity [Abstract] | |
Schedule of Earnings Per Share | (millions, except per share data) Net income attributable to Kellogg Company Average shares outstanding Earnings per share 2015 Basic $ 614 354 $ 1.74 Dilutive potential common shares 2 (0.02 ) Diluted $ 614 356 $ 1.72 2014 Basic $ 632 358 $ 1.76 Dilutive potential common shares 2 (0.01 ) Diluted $ 632 360 $ 1.75 2013 Basic $ 1,807 363 $ 4.98 Dilutive potential common shares 2 (0.04 ) Diluted $ 1,807 365 $ 4.94 |
Changes in Comprehensive Income | 2015 2014 2013 Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax Pre-tax Tax (expense) After-tax amount benefit amount amount benefit amount amount benefit amount Net income $ 614 $ 633 $ 1,808 Other comprehensive income: Foreign currency translation adjustments $ (170 ) $ (26 ) (196 ) $ (231 ) $ (32 ) $ (263 ) $ (24 ) — (24 ) Cash flow hedges: Unrealized gain (loss) on cash flow hedges 8 (3 ) 5 (35 ) 18 (17 ) 11 (1 ) 10 Reclassification to net income (23 ) 3 (20 ) (10 ) 2 (8 ) (6 ) — (6 ) Postretirement and postemployment benefits: Amounts arising during the period: Net experience gain (loss) — — — (8 ) 3 (5 ) 17 (6 ) 11 Prior service credit (cost) 63 (24 ) 39 10 (3 ) 7 9 (2 ) 7 Reclassification to net income: Net experience loss 3 (1 ) 2 3 (1 ) 2 5 (2 ) 3 Prior service cost 9 (3 ) 6 10 (3 ) 7 13 (4 ) 9 Other comprehensive income (loss) $ (110 ) $ (54 ) $ (164 ) $ (261 ) $ (16 ) $ (277 ) $ 25 $ (15 ) $ 10 Comprehensive income $ 450 $ 356 $ 1,818 Net income (loss) attributable to noncontrolling interests — 1 1 Other comprehensive income (loss) attributable to noncontrolling interests (1 ) — — Comprehensive income attributable to Kellogg Company $ 451 $ 355 $ 1,817 |
Reclassification out of AOCI | Details about AOCI Components Amount reclassified from AOCI Line item impacted within Income Statement (millions) 2015 2014 2013 Gains and losses on cash flow hedges: Foreign currency exchange contracts $ (40 ) $ (5 ) $ (10 ) COGS Foreign currency exchange contracts 2 (3 ) (2 ) SGA Interest rate contracts 3 (9 ) (4 ) Interest expense Commodity contracts 12 7 10 COGS $ (23 ) $ (10 ) $ (6 ) Total before tax 3 2 — Tax (expense) benefit $ (20 ) $ (8 ) $ (6 ) Net of tax Amortization of postretirement and postemployment benefits: Net experience loss $ 3 $ 3 $ 5 (a) Prior service cost 9 10 13 (a) $ 12 $ 13 $ 18 Total before tax (4 ) (4 ) (6 ) Tax (expense) benefit $ 8 $ 9 $ 12 Net of tax Total reclassifications $ (12 ) $ 1 $ 6 Net of tax (a) See Note 9 and Note 10 for further details . |
Summary of Accumulated Other Comprehensive Income (Loss) | (millions) January 2, 2016 January 3, 2015 Foreign currency translation adjustments $ (1,314 ) $ (1,119 ) Cash flow hedges — unrealized net gain (loss) (39 ) (24 ) Postretirement and postemployment benefits: Net experience loss (16 ) (18 ) Prior service cost (7 ) (52 ) Total accumulated other comprehensive income (loss) $ (1,376 ) $ (1,213 ) |
Leases and Other Commitment Lea
Leases and Other Commitment Leases and Other Commitments (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Leases [Abstract] | |
Operating leases and capital leases [Table Text Block] | (millions) Operating leases Capital leases 2016 $ 171 $ 2 2017 152 1 2018 119 1 2019 81 — 2020 62 — 2021 and beyond 87 1 Total minimum payments $ 672 $ 5 Amount representing interest — Obligations under capital leases 5 Obligations due within one year (2 ) Long-term obligations under capital leases $ 3 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Debt [Abstract] | |
Components of Notes Payable | (millions) 2015 2014 Principal amount Effective interest rate Principal amount Effective interest rate U.S. commercial paper $ 899 0.45 % $ 681 0.36 % Europe commercial paper 261 0.01 96 0.09 Bank borrowings 44 51 Total $ 1,204 $ 828 |
Schedule of Debt [Table Text Block] | (millions) 2015 2014 (a) 7.45% U.S. Dollar Debentures due 2031 $ 1,090 $ 1,090 (b) 1.25% Euro Notes due 2025 651 — (c) 2.75% U.S. Dollar Notes due 2023 210 210 (d) 3.125% U.S. Dollar Notes due 2022 369 357 (e) 1.75% Euro Notes due 2021 541 597 (f) 4.0% U.S. Dollar Notes due 2020 861 842 (g) 4.15% U.S. Dollar Notes due 2019 514 497 (h) 3.25% U.S. Dollar Notes due 2018 412 410 (i) 2.05% Canadian Dollar Notes due 2017 217 259 (j) 1.75% U.S. Dollar Notes due 2017 400 396 (k) 1.875% U.S. Dollar Notes due 2016 502 504 (l) 4.45% U.S. Dollar Notes due 2016 753 760 (m) 1.125% U.S. Dollar Notes due 2015 — 350 (n) Floating-rate U.S. Dollar Notes due 2015 — 250 Other 35 20 6,555 6,542 Less current maturities (1,266 ) (607 ) Balance at year end $ 5,289 $ 5,935 (a) In March 2001, the Company issued long-term debt instruments, primarily to finance the acquisition of Keebler Foods Company, of which $1.1 billion of thirty -year 7.45% Debentures remain outstanding. The effective interest rate on the Debentures, reflecting issuance discount and hedge settlement, was 7.54% . The Debentures contain standard events of default and covenants, and can be redeemed in whole or in part by the Company at any time at prices determined under a formula (but not less than 100% of the principal amount plus unpaid interest to the redemption date). (b) In March 2015, the Company issued €600 million (approximately $651 million at January 2, 2016 , which reflects the discount and translation adjustments) of ten -year 1.25% Euro Notes due 2025, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.07% . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. (c) In February 2013, the Company issued $400 million of ten -year 2.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including, together with cash on hand, to repay a portion of the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The effective interest rate on these Notes, reflecting issuance discount and hedge settlement, was 2.74% . In March 2014, the Company redeemed $189 million of the Notes. In connection with the debt redemption, the Company reduced interest expense by $10 million , including $1 million of accelerated gains on interest rate swaps previously recorded in accumulated other comprehensive income, and incurred $2 million expense, recorded in Other Income, Expense (net), related to acceleration of fees on the redeemed debt and fees related to the tender offer. (d) In May 2012, the Company issued $700 million of ten -year 3.125% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 2.69% at January 2, 2016 . In March 2014, the Company redeemed $342 million of the Notes. In connection with the debt redemption, the Company reduced interest expense by $2 million and incurred $2 million 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 entered into interest rate swaps in 2013 and 2014 with notional amounts totaling $200 million and $158 million , respectively, which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $13 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $1 million , at January 3, 2015 , recorded as an increase in the hedged debt balance. (e) In May 2014, the Company issued €500 million (approximately $541 million at January 2, 2016 , 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 effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.18% . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. (f) In December 2010, the Company issued $1.0 billion of ten -year 4.0% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for incremental pension and postretirement benefit plan contributions and to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 2.98% at January 2, 2016 . In March 2014, the Company redeemed $150 million of the Notes. In connection with the debt redemption, the Company incurred $12 million of interest expense offset by $7 million of accelerated gains on interest rate swaps previously recorded in accumulated other comprehensive income, and incurred $1 million 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 entered into interest rate swaps in 2013 and 2014 with notional amounts totaling $400 million and $300 million , respectively, which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $14 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million , at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (g) In November 2009, the Company issued $500 million of ten -year 4.15% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its 6.6% U.S. Dollar Notes due 2011. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 3.52% at January 2, 2016 . In 2012, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $15 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $2 million at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (h) In May 2011, the Company issued $400 million of seven -year 3.25% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes including repayment of a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 2.52% at January 2, 2016 . In 2011, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2013, the Company terminated all of the interest rate swaps and subsequently entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company terminated all interest rate swaps, and the resulting unamortized gain of $12 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (i) In May 2014, the Company issued Cdn. $300 million (approximately $217 million USD at January 2, 2016 , 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 2014 at maturity. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.10% . (j) In May 2012, the Company issued $400 million of five -year 1.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 1.71% at January 2, 2016 . In 2013, the Company entered into interest rate swaps with notional amounts totaling $400 million , which effectively converted the Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company terminated all interest rate swaps, and the resulting unamortized gain of $1 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million , at January 3, 2015 , and was recorded as a decrease in the hedged debt balance. (k) In November 2011, the Company issued $500 million of five -year 1.875% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes including repayment of a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 1.63% at January 2, 2016 . In 2012, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2013, the Company terminated all of the interest rate swaps and subsequently entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2014, the Company terminated all of the interest rate swaps. The unamortized gain of $2 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. (l) In May 2009, the Company issued $750 million of seven -year 4.45% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 4.10% at January 2, 2016 . The Company entered into interest rate swaps in 2011 and 2012 with notional amounts totaling $200 million and $550 million , respectively, which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2013, the Company terminated all of the interest rate swaps. The unamortized gain of $3 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. (m) In May 2012, the Company issued $350 million of three -year 1.125% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount, was 1.16% . The Company redeemed these Notes in May 2015. (n) In February 2013, the Company issued $250 million of floating-rate U.S. Dollar Notes bearing interest at LIBOR plus 0.23% due February 2015. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand, to repay a portion the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The Company redeemed these Notes in February 2015. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Compensation Expense For Equity Programs And Related Tax Benefits Text Block [Table Text Block] | (millions) 2015 2014 2013 Pre-tax compensation expense $ 55 $ 41 $ 38 Related income tax benefit $ 20 $ 15 $ 14 |
Schedule of Cash and Tax Benefits Received Upon Exercise of Stock Options and Similar Instruments [Table Text Block] | (millions) 2015 2014 2013 Total cash received from option exercises and similar instruments $ 261 $ 217 $ 475 Tax benefits realized upon exercise or vesting of stock-based awards: Windfall benefits classified as financing cash flow $ 14 $ 11 $ 24 |
Schedule of Stock Option Valuation Model Assumptions for Grants [Table Text Block] | Stock option valuation model assumptions for grants within the year ended: 2015 2014 2013 Weighted-average expected volatility 16.00 % 15.00 % 15.00 % Weighted-average expected term (years) 6.87 7.34 7.44 Weighted-average risk-free interest rate 1.98 % 2.35 % 1.49 % Dividend yield 3.00 % 3.00 % 2.90 % Weighted-average fair value of options granted $ 7.21 $ 6.70 $ 5.92 |
Schedule of Share-based Compensation, Activity [Table Text Block] | Employee and director stock options Shares (millions) Weighted- average exercise price Weighted- average remaining contractual term (yrs.) Aggregate intrinsic value (millions) Outstanding, beginning of year 21 $ 56 Granted 3 64 Exercised (5 ) 53 Forfeitures and expirations — 60 Outstanding, end of year 19 $ 58 6.9 $ 264 Exercisable, end of year 10 $ 55 5.9 $ 180 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2014 2013 Outstanding, beginning of year 20 25 Granted 6 6 Exercised (4 ) (10 ) Forfeitures and expirations (1 ) (1 ) Outstanding, end of year 21 20 Exercisable, end of year 10 9 Weighted-average exercise price: Outstanding, beginning of year $ 54 $ 50 Granted 60 60 Exercised 50 48 Forfeitures and expirations 58 55 Outstanding, end of year $ 56 $ 54 Exercisable, end of year $ 53 $ 50 |
Summary of Restricted Stock Summary [Table Text Block] | Employee restricted stock and restricted stock units Shares (thousands) Weighted- average grant-date fair value Non-vested, beginning of year 346 $ 54 Granted 617 59 Vested (113 ) 50 Forfeited (44 ) 58 Non-vested, end of year 806 $ 57 Additionally, restricted stock and restricted stock unit activity for 2014 and 2013 is presented in the following table: Employee restricted stock and restricted stock units 2014 2013 Shares (in thousands): Non-vested, beginning of year 318 316 Granted 114 139 Vested (65 ) (117 ) Forfeited (21 ) (20 ) Non-vested, end of year 346 318 Weighted-average exercise price: Non-vested, beginning of year $ 52 $ 50 Granted 56 52 Vested 51 51 Forfeited 53 47 Non-vested, end of year $ 54 $ 52 |
Pension Benefits (Tables)
Pension Benefits (Tables) - Pension [Member] | 12 Months Ended |
Jan. 02, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Company Plan Benefit Expense [Table Text Block] | (millions) 2015 2014 Change in projected benefit obligation Beginning of year $ 5,570 $ 4,888 Service cost 114 106 Interest cost 206 225 Plan participants’ contributions 2 2 Amendments 25 4 Actuarial (gain)loss (191 ) 754 Benefits paid (262 ) (281 ) Curtailment and special termination benefits (2 ) — Other 4 3 Foreign currency adjustments (150 ) (131 ) End of year $ 5,316 $ 5,570 Change in plan assets Fair value beginning of year $ 5,028 $ 5,014 Actual return on plan assets (102 ) 390 Employer contributions 19 37 Plan participants’ contributions 2 2 Benefits paid (235 ) (261 ) Other 4 3 Foreign currency adjustments (132 ) (157 ) Fair value end of year $ 4,584 $ 5,028 Funded status $ (732 ) $ (542 ) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 231 $ 250 Other current liabilities (17 ) (15 ) Other liabilities (946 ) (777 ) Net amount recognized $ (732 ) $ (542 ) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 67 $ 59 Net amount recognized $ 67 $ 59 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | (millions) 2015 2014 Projected benefit obligation $ 3,769 $ 3,958 Accumulated benefit obligation $ 3,574 $ 3,683 Fair value of plan assets $ 2,835 $ 3,179 |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2015 2014 2013 Service cost $ 114 $ 106 $ 133 Interest cost 206 225 203 Expected return on plan assets (399 ) (415 ) (359 ) Amortization of unrecognized prior service cost 13 14 16 Recognized net (gain)loss 303 782 (854 ) Curtailment and special termination benefits (1 ) 4 34 Pension (income)expense: Defined benefit plans 236 716 (827 ) Defined contribution plans 40 36 35 Total $ 276 $ 752 $ (792 ) |
Schedule of Assumptions Used [Table Text Block] | 2015 2014 2013 Discount rate 4.1 % 3.9 % 4.7 % Long-term rate of compensation increase 3.9 % 4.0 % 4.1 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2015 2014 2013 Discount rate 3.9 % 4.7 % 4.1 % Long-term rate of compensation increase 4.0 % 4.1 % 4.1 % Long-term rate of return on plan assets 8.3 % 8.5 % 8.5 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 83 $ 8 $ — $ 91 Corporate stock, common: Domestic 608 — — 608 International 109 — — 109 Mutual funds: International equity — 441 — 441 Collective trusts: Domestic equity — 411 — 411 International equity — 1,130 — 1,130 Eurozone sovereign debt — 10 — 10 Other international debt — 368 — 368 Limited partnerships — 455 — 455 Bonds, corporate — 419 — 419 Bonds, government — 157 — 157 Bonds, other — 49 — 49 Buy-in annuity contract — — 135 135 Real estate — — 135 135 Other — 60 6 66 Total $ 800 $ 3,508 $ 276 $ 4,584 The fair value of Plan assets at January 3, 2015 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 47 $ 44 $ — $ 91 Corporate stock, common: Domestic 556 — — 556 International 161 — — 161 Mutual funds: International equity — 393 — 393 International debt — — — — Collective trusts: Domestic equity — 594 — 594 International equity — 1,261 — 1,261 Eurozone sovereign debt — 11 — 11 Other international debt — 534 — 534 Limited partnerships — 475 — 475 Bonds, corporate — 519 — 519 Bonds, government — 172 — 172 Bonds, other — 59 — 59 Real estate — — 130 130 Other — 64 8 72 Total $ 764 $ 4,126 $ 138 $ 5,028 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | (millions) Bonds, corporate Real estate Buy-in Annuity Contract Other Total December 28, 2013 $ 1 $ 125 — $ 8 $ 134 Sales (1 ) (1 ) — — (2 ) Realized and unrealized gain — 23 — — 23 Currency translation — (17 ) — — (17 ) January 3, 2015 $ — $ 130 $ — $ 8 $ 138 Sales — (5 ) — (3 ) (8 ) Purchases — — 135 3 138 Realized and unrealized gain — 16 — (1 ) 15 Currency translation — (6 ) — (1 ) (7 ) January 2, 2016 $ — $ 135 $ 135 $ 6 $ 276 |
Nonpension Postretirement and35
Nonpension Postretirement and Postemployment Benefits (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Nonpension Postretirement [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (millions) 2015 2014 Change in accumulated benefit obligation Beginning of year $ 1,288 $ 1,202 Service cost 29 28 Interest cost 48 55 Actuarial (gain) loss (53 ) 116 Benefits paid (57 ) (62 ) Curtailments — (28 ) Amendments (84 ) (18 ) Foreign currency adjustments (8 ) (5 ) End of year $ 1,163 $ 1,288 Change in plan assets Fair value beginning of year $ 1,204 $ 1,178 Actual return on plan assets (65 ) 81 Employer contributions 14 16 Benefits paid (69 ) (71 ) Fair value end of year $ 1,084 $ 1,204 Funded status $ (79 ) $ (84 ) Amounts recognized in the Consolidated Balance Sheet consist of Other non-current assets $ — $ — Other current liabilities (2 ) (2 ) Other liabilities (77 ) (82 ) Net amount recognized $ (79 ) $ (84 ) Amounts recognized in accumulated other comprehensive income consist of Prior service credit (95 ) (16 ) Net amount recognized $ (95 ) $ (16 ) |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2015 2014 2013 Service cost $ 29 $ 28 $ 34 Interest cost 48 55 50 Expected return on plan assets (100 ) (98 ) (86 ) Amortization of unrecognized prior service credit (5 ) (3 ) (3 ) Recognized net (gain) loss 112 133 (247 ) Curtailment — (28 ) 1 Postretirement benefit expense: Defined benefit plans 84 87 (251 ) Defined contribution plans 14 14 13 Total $ 98 $ 101 $ (238 ) |
Schedule of Assumptions Used [Table Text Block] | 2015 2014 2013 Discount rate 4.2 % 4.0 % 4.8 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2015 2014 2013 Discount rate 4.0 % 4.8 % 3.9 % Long-term rate of return on plan assets 8.5 % 8.5 % 8.5 % |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | (millions) One percentage point increase One percentage point decrease Effect on total of service and interest cost components $ 4 $ (3 ) Effect on postretirement benefit obligation 89 (72 ) |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 9 $ 13 $ — $ 22 Corporate stock, common: Domestic 195 — — 195 International 5 — — 5 Mutual funds: Domestic equity — 52 — 52 International equity — 111 — 111 Domestic debt — 54 — 54 Collective trusts: Domestic equity — 150 — 150 International equity — 148 — 148 Limited partnerships — 166 — 166 Bonds, corporate — 120 — 120 Bonds, government — 48 — 48 Bonds, other — 12 — 12 Other — 1 — 1 Total $ 209 $ 875 $ — $ 1,084 The fair value of Plan assets at January 3, 2015 are summarized as follows: (millions) Total Level 1 Total Level 2 Total Level 3 Total Cash and cash equivalents $ 6 $ 27 $ — $ 33 Corporate stock, common: Domestic 214 — — 214 International 17 — — 17 Mutual funds: Domestic equity — 153 — 153 International equity — 120 — 120 Domestic debt — 63 — 63 Collective trusts: Domestic equity — 53 — 53 International equity — 164 — 164 Limited partnerships — 174 — 174 Bonds, corporate — 141 — 141 Bonds, government — 54 — 54 Bonds, other — 17 — 17 Other — 1 — 1 Total $ 237 $ 967 $ — $ 1,204 |
Postemployment [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (millions) 2015 2014 Change in accumulated benefit obligation Beginning of year $ 104 $ 87 Service cost 7 7 Interest cost 4 4 Actuarial (gain)loss — 8 Benefits paid (6 ) (9 ) Amendments — 8 Foreign currency adjustments (1 ) (1 ) End of year $ 108 $ 104 Funded status $ (108 ) $ (104 ) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (8 ) $ (8 ) Other liabilities (100 ) (96 ) Net amount recognized $ (108 ) $ (104 ) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 6 $ 7 Net experience loss 27 30 Net amount recognized $ 33 $ 37 |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2015 2014 2013 Service cost $ 7 $ 7 $ 7 Interest cost 4 4 3 Amortization of unrecognized prior service cost 1 — — Recognized net loss 3 3 5 Postemployment benefit expense $ 15 $ 14 $ 15 |
Schedule of Expected Benefit Payments [Table Text Block] | (millions) Postretirement Postemployment 2016 $ 71 $ 9 2017 72 8 2018 73 8 2019 73 8 2020 74 8 2021-2025 390 42 |
Multipemployer Pension and Po36
Multipemployer Pension and Postretirement Plans (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Multiemployer Plans [Abstract] | |
Schedule of Multiemployer Plans [Table Text Block] | PPA Zone Status Contributions (millions) Pension trust fund EIN/PN 2015 2014 FIP/RP Status 2015 2014 2013 Surcharge Imposed Expiration Date of CBA Bakery and Confectionary Union and Industry International Pension Fund (a) 52-6118572 / Red - Red - Implemented $ 5.1 $ 5.4 $ 5.2 Yes 7/31/2016 to Central States, Southeast and Southwest Areas Pension Fund (b) 36-6044243 / Red - Red - Implemented 4.8 4.5 4.5 Yes 4/30/2016 to Western Conference of Teamsters Pension Trust ( c ) 91-6145047 / Green - Green - NA 1.6 1.6 1.5 No 1/31/2018 to Hagerstown Motor Carriers and Teamsters Pension Fund 52-6045424 / Red - Red - Implemented 0.5 0.5 0.5 No 9/28/2019 Local 734 Pension Plan 51-6040136 / Red - Red - Implemented 0.3 0.3 0.3 Yes 4/1/2019 Twin Cities Bakery Drivers Pension Plan 41-6172265 / Green - Green - NA 0.2 0.2 0.2 Yes 5/31/2018 Upstate New York Bakery Drivers and Industry Pension Fund 15-0612437 / Green - Green - NA 0.2 0.2 0.1 No 9/10/2017 Other Plans 2.0 2.0 2.2 Total contributions: $ 14.7 $ 14.7 $ 14.5 (a) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 70 percent of the Company’s participants in this fund are covered by a single CBA that expires on 4/30/2017. (b) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 40 percent of the Company’s participants in this fund are covered by a single CBA that expires on 9/30/2018. (c) The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 40 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/24/2018. |
Schedule Of Pension Contributions Exceeding Five Percent Of Total Contributions [Table Text Block] | Pension trust fund Contributions to the plan exceeded more than 5% of total contributions (as of the Plan’s year end) Hagerstown Motor Carriers and Teamsters Pension Fund 6/30/2014, 6/30/2013 and 6/30/2012 Local 734 Pension Plan 4/30/2015, 4/30/2014 and 4/30/2013 Twin Cities Bakery Drivers Pension Plan 12/31/2014, 12/31/2013 and 12/31/2012 Upstate New York Bakery Drivers and Industry Pension Fund 6/30/15, 6/30/2014 and 6/30/2013 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block] | (millions) 2015 2014 2013 Income before income taxes United States $ 551 $ 502 $ 2,102 Foreign 222 323 504 773 825 2,606 Income taxes Currently payable Federal 212 301 302 State 42 36 68 Foreign 74 103 105 328 440 475 Deferred Federal (136 ) (186 ) 331 State (14 ) (14 ) (2 ) Foreign (19 ) (54 ) (12 ) (169 ) (254 ) 317 Total income taxes $ 159 $ 186 $ 792 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 2013 U.S. statutory income tax rate 35.0 35.0 % 35.0 % Foreign rates varying from 35% (9.6 ) (7.9 ) (3.5 ) State income taxes, net of federal benefit 2.3 1.7 1.7 Cost (benefit) of remitted and unremitted foreign earnings (4.4 ) (0.1 ) (0.4 ) U.S. deduction for qualified production activities (2.3 ) (2.8 ) (0.9 ) Statutory rate changes, deferred tax impact (0.8 ) (0.4 ) (0.5 ) VIE deconsolidation (2.3 ) — — Venezuela remeasurement 5.0 — — Other (2.3 ) (2.9 ) (1.0 ) Effective income tax rate 20.6 % 22.6 % 30.4 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets Deferred tax liabilities (millions) 2015 2014 2015 2014 U.S. state income taxes $ 13 $ 10 $ 43 $ 49 Advertising and promotion-related 15 21 — — Wages and payroll taxes 21 36 — — Inventory valuation 31 — — — Employee benefits 366 305 — — Operating loss and credit carryforwards 55 54 — — Hedging transactions 43 48 — — Depreciation and asset disposals — — 345 352 Trademarks and other intangibles — — 576 555 Deferred compensation 35 35 — — Stock options 42 38 — — Unremitted foreign earnings — — — 1 Other 86 84 — — 707 631 964 957 Less valuation allowance (63 ) (51 ) — — Total deferred taxes $ 644 $ 580 $ 964 $ 957 Net deferred tax asset (liability) $ (320 ) $ (377 ) Classified in balance sheet as: Other current assets $ 227 $ 184 Other current liabilities (9 ) (10 ) Other assets 147 175 Other liabilities (685 ) (726 ) Net deferred tax asset (liability) $ (320 ) $ (377 ) |
Summary of Valuation Allowance [Table Text Block] | (millions) 2015 2014 2013 Balance at beginning of year $ 51 $ 61 $ 59 Additions charged to income tax expense 23 9 17 Reductions credited to income tax expense (7 ) (3 ) (3 ) Other (a) — — (10 ) Currency translation adjustments (4 ) (16 ) (2 ) Balance at end of year $ 63 $ 51 $ 61 (a) Reduction due to the disposition of a business resulting in deferred tax asset and valuation allowance being eliminated. |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | (millions) 2015 2014 2013 Balance at beginning of year $ 78 $ 79 $ 80 Tax positions related to current year: Additions 8 7 9 Tax positions related to prior years: Additions 9 10 17 Reductions (12 ) (12 ) (13 ) Settlements (10 ) (2 ) (14 ) Lapses in statutes of limitation — (4 ) — Balance at end of year $ 73 $ 78 $ 79 |
Derivative Instruments and Fa38
Derivative Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Total Notional Amounts of the Company's Derivative Instruments [Table Text Block] | (millions) 2015 2014 Foreign currency exchange contracts $ 1,210 $ 764 Interest rate contracts — 2,958 Commodity contracts 470 492 Total $ 1,680 $ 4,214 |
Schedule of Assets and Liabilities Measure at Fair Value on a Recurring Basis [Table Text Block] | 2015 2014 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 11 $ 11 $ — $ 29 $ 29 Interest rate contracts (a): Other assets — — — — 7 7 Total assets $ — $ 11 $ 11 $ — $ 36 $ 36 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (10 ) $ (10 ) $ — $ (6 ) $ (6 ) Interest rate contracts: Other current liabilities — — — — (3 ) (3 ) Other liabilities — — — — (16 ) (16 ) Commodity contracts: Other current liabilities — (14 ) (14 ) — (12 ) (12 ) Other liabilities — — — — (11 ) (11 ) Total liabilities $ — $ (24 ) $ (24 ) $ — $ (48 ) $ (48 ) (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 January 3, 2015. Derivatives not designated as hedging instruments: 2015 2014 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 18 $ 18 $ — $ — $ — Commodity contracts: Other current assets 4 — 4 7 — 7 Total assets $ 4 $ 18 $ 22 $ 7 $ — $ 7 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — (6 ) $ (6 ) $ — $ — $ — Commodity contracts: Other current liabilities (33 ) — (33 ) (36 ) — (36 ) Other liabilities — — — (4 ) — (4 ) Total liabilities $ (33 ) $ (6 ) $ (39 ) $ (40 ) $ — $ (40 ) |
Offsetting Assets [Table Text Block] | As of January 2, 2016: 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 $ 33 $ (12 ) $ — $ 21 Total liability derivatives $ (63 ) $ 12 $ 51 $ — As of January 3, 2015: 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 $ 43 $ (29 ) $ — $ 14 Total liability derivatives $ (88 ) $ 29 $ 50 $ (9 ) |
Offsetting Liabilities [Table Text Block] | As of January 2, 2016: 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 $ 33 $ (12 ) $ — $ 21 Total liability derivatives $ (63 ) $ 12 $ 51 $ — As of January 3, 2015: 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 $ 43 $ (29 ) $ — $ 14 Total liability derivatives $ (88 ) $ 29 $ 50 $ (9 ) |
Schedule of the Effect of Derivative Instrument on the Consolidated Statement of Income [Table Text Block] | The effect of derivative instruments on the Consolidated Statement of Income for the years ended January 2, 2016 and January 3, 2015 were as follows: Derivatives in fair value hedging relationships (millions) Location of gain (loss) recognized in income Gain (loss) recognized in income (a) 2015 2014 Foreign currency exchange contracts OIE $ (4 ) $ 3 Interest rate contracts Interest expense 20 17 Total $ 16 $ 20 (a) Includes the ineffective portion and amount excluded from effectiveness testing. Derivatives in cash flow hedging relationships (millions) Gain (loss) recognized in AOCI Location of gain (loss) reclassified from AOCI Gain (Loss) reclassified from AOCI into income Location of gain (loss) recognized in income (a) Gain (loss) recognized in income (a) 2015 2014 2015 2014 2015 2014 Foreign currency exchange contracts $ 26 $ 34 COGS $ 40 $ 5 OIE $ (3 ) $ (4 ) Foreign currency exchange contracts (6 ) 4 SGA expense (2 ) 3 OIE — — Interest rate contracts (9 ) (69 ) Interest expense (3 ) 9 N/A — — Commodity contracts (3 ) (4 ) COGS (12 ) (7 ) OIE — — Total $ 8 $ (35 ) $ 23 $ 10 $ (3 ) $ (4 ) (a) Includes the ineffective portion and amount excluded from effectiveness testing. Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) recognized in AOCI 2015 2014 Foreign currency denominated long-term debt $ 70 $ 86 Total $ 70 $ 86 Derivatives not designated as hedging instruments (millions) Location of gain (loss) recognized in income Gain (loss) recognized in income 2015 2014 Foreign currency exchange contracts COGS $ 16 $ — Foreign currency exchange contracts OIE 8 1 Interest rate contracts Interest expense — (4 ) Commodity contracts COGS (63 ) (73 ) Commodity contracts SGA (5 ) (5 ) Total $ (44 ) $ (81 ) |
Schedule of Fair Value of Long-term Debt [Table Text Block] | (millions) Fair Value Carrying Value Current maturities of long-term debt $ 1,266 $ 1,266 Long-term debt 5,635 5,289 Total $ 6,901 $ 6,555 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Data Net Sales And Gross Profit [Table Text Block] | Net sales Gross profit (millions) 2015 2014 2015 2014 First $ 3,556 $ 3,742 $ 1,245 $ 1,504 Second 3,498 3,685 1,241 1,411 Third 3,329 3,639 1,233 1,292 Fourth 3,142 3,514 962 856 $ 13,525 $ 14,580 $ 4,681 $ 5,063 |
Schedule Of Quarterly Financial Data Net Income And Earnings Per Share [Table Text Block] | Net income attributable to Kellogg Company Per share amounts (millions) 2015 2014 2015 2014 Basic Diluted Basic Diluted First $ 227 $ 406 $ 0.64 $ 0.64 $ 1.13 $ 1.12 Second 223 295 0.63 0.63 0.82 0.82 Third 205 224 0.58 0.58 0.63 0.62 Fourth (41 ) (293 ) (0.12 ) (0.12 ) (0.82 ) (0.82 ) $ 614 $ 632 |
Schedule Of Quarterly Financial Data Dividends Per Share And Stock Prices [Table Text Block] | Dividend per share Stock price 2015 — Quarter High Low First $ 0.49 $ 69.84 $ 61.97 Second 0.49 66.38 61.31 Third 0.50 69.77 62.74 Fourth 0.50 73.51 66.03 $ 1.98 2014 — Quarter First $ 0.46 $ 62.13 $ 56.90 Second 0.46 69.39 62.62 Third 0.49 66.41 59.83 Fourth 0.49 67.24 59.70 $ 1.90 |
Schedule Of Quarterly Financial Data Charges Gain In Operating Profit [Table Text Block] | During 2015 , the Company recorded the following charges / (gains) in operating profit: 2015 (millions) First Second Third Fourth Full Year Restructuring and cost reduction charges $ 68 $ 90 $ 85 $ 80 $ 323 (Gains) / losses on mark-to-market adjustments 67 (35 ) 27 387 446 $ 135 $ 55 $ 112 $ 467 $ 769 During 2014 , the Company recorded the following charges / (gains) in operating profit: 2014 (millions) First Second Third Fourth Full Year Restructuring and cost reduction charges $ 54 $ 78 $ 92 $ 74 $ 298 (Gains) / losses on mark-to-market adjustments (116 ) 12 66 822 784 $ (62 ) $ 90 $ 158 $ 896 $ 1,082 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (millions) 2015 2014 2013 Net sales U.S. Morning Foods $ 2,992 $ 3,108 $ 3,195 U.S. Snacks 3,234 3,329 3,379 U.S. Specialty 1,181 1,198 1,202 North America Other 1,687 1,864 1,940 Europe 2,497 2,869 2,843 Latin America 1,015 1,205 1,195 Asia Pacific 919 1,007 1,038 Consolidated $ 13,525 $ 14,580 $ 14,792 Operating profit U.S. Morning Foods $ 474 $ 479 $ 469 U.S. Snacks 385 364 424 U.S. Specialty 260 266 265 North America Other 178 295 314 Europe 247 232 249 Latin America 9 169 157 Asia Pacific 54 53 67 Total Reportable Segments 1,607 1,858 1,945 Corporate (516 ) (834 ) 892 Consolidated $ 1,091 $ 1,024 $ 2,837 Depreciation and amortization (a) U.S. Morning Foods $ 123 $ 136 $ 181 U.S. Snacks 135 166 144 U.S. Specialty 11 10 8 North America Other 74 32 30 Europe 120 92 84 Latin America 28 32 29 Asia Pacific 29 31 40 Total Reportable Segments 520 499 516 Corporate 14 4 16 Consolidated $ 534 $ 503 $ 532 (a) Includes asset impairment charges as discussed in Note 13 . |
Schedule Of Interest Expense And Income Tax Expense By Segment [Table Text Block] | (millions) 2015 2014 2013 Interest expense North America Other $ 5 $ 6 $ 6 Europe 5 5 6 Latin America 5 3 1 Asia Pacific 2 1 3 Corporate 210 194 219 Consolidated $ 227 $ 209 $ 235 Income taxes Europe $ 10 $ (3 ) $ 4 Latin America 34 42 35 Asia Pacific — (1 ) 6 Corporate & North America 115 148 747 Consolidated $ 159 $ 186 $ 792 |
Schedule Of Total Assets And Additions To Long Lived Assets By Segment [Table Text Block] | (millions) 2015 2014 2013 Total assets North America $ 10,363 $ 10,489 $ 10,643 Europe 3,742 2,893 3,007 Latin America 587 905 1,052 Asia Pacific 1,106 1,111 1,049 Corporate 1,198 1,796 2,583 Elimination entries (1,731 ) (2,041 ) (2,860 ) Consolidated $ 15,265 $ 15,153 $ 15,474 Additions to long-lived assets North America $ 342 $ 295 $ 296 Europe 110 129 182 Latin America 23 31 70 Asia Pacific 76 120 85 Corporate 2 7 4 Consolidated $ 553 $ 582 $ 637 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | (millions) 2015 2014 2013 Net sales United States $ 8,560 $ 8,876 $ 9,060 All other countries 4,965 5,704 5,732 Consolidated $ 13,525 $ 14,580 $ 14,792 Long-lived assets United States $ 2,220 $ 2,283 $ 2,343 All other countries 1,401 1,486 1,513 Consolidated $ 3,621 $ 3,769 $ 3,856 |
Revenue from External Customers by Products and Services [Table Text Block] | (millions) 2015 2014 2013 Cereal $ 5,871 $ 6,570 $ 6,753 Snacks 6,698 7,002 7,011 Frozen 956 1,008 1,028 Consolidated $ 13,525 $ 14,580 $ 14,792 |
Supplemental Financial Statem41
Supplemental Financial Statement Data (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Supplemental Financial Statement Data [Abstract] | |
Supplemental Financial Data Consolidated Statement Of Income [Table Text Block] | Consolidated Statement of Income (millions) 2015 2014 2013 Research and development expense $ 193 $ 199 $ 199 Advertising expense $ 898 $ 1,094 $ 1,131 |
Supplemental Financial Data Consolidated Balance Sheet [Table Text Block] | Consolidated Balance Sheet (millions) 2015 2014 Trade receivables $ 1,169 $ 1,101 Allowance for doubtful accounts (8 ) (7 ) Refundable income taxes 27 16 Other receivables 156 166 Accounts receivable, net $ 1,344 $ 1,276 Raw materials and supplies $ 315 $ 327 Finished goods and materials in process 935 952 Inventories $ 1,250 $ 1,279 Deferred income taxes $ 227 $ 184 Other prepaid assets 164 158 Other current assets $ 391 $ 342 Land $ 142 $ 105 Buildings 2,076 2,154 Machinery and equipment 5,617 6,017 Capitalized software 328 327 Construction in progress 694 692 Accumulated depreciation (5,236 ) (5,526 ) Property, net $ 3,621 $ 3,769 Other intangibles $ 2,315 $ 2,338 Accumulated amortization (47 ) (43 ) Other intangibles, net $ 2,268 $ 2,295 Pension $ 231 $ 250 Other 485 527 Other assets $ 716 $ 777 Accrued income taxes $ 42 $ 39 Accrued salaries and wages 325 320 Accrued advertising and promotion 447 446 Other 548 596 Other current liabilities $ 1,362 $ 1,401 Nonpension postretirement benefits $ 77 $ 82 Other 391 418 Other liabilities $ 468 $ 500 |
Supplemental Financial Data Allowance For Doubtful Accounts [Table Text Block] | Allowance for doubtful accounts (millions) 2015 2014 2013 Balance at beginning of year $ 7 $ 5 $ 6 Additions charged to expense 4 6 2 Doubtful accounts charged to reserve (3 ) (4 ) (3 ) Balance at end of year $ 8 $ 7 $ 5 |
Accounting Policies Accounting
Accounting Policies Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Income Tax Examination Percentage Likelihood Of Unfavorable Settlement | 50.00% | |
Deferred Tax Assets, Net | $ (320) | $ (377) |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 18 months | |
Maximum Length of Time Hedged in Price Risk Cash Flow Hedge | 18 months | |
Payables Placed On Tracking System | $ 501 | 236 |
Payables Financed By Participating Suppliers | $ 407 | 184 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected rates of return | 25th | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected rates of return | 75th | |
Machinery and Equipment [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Machinery and Equipment [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Office Equipment [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 4 years | |
Office Equipment [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Computer Equipment and Capitalized Software [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer Equipment and Capitalized Software [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Building [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Building [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years | |
Building Components [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 15 years | |
Building Components [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Other Current Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred Tax Assets, Net | $ 227 | 184 |
Other Current Liabilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deferred Tax Assets, Net | $ (9) | $ (10) |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2015 | Sep. 30, 2015 | Jan. 31, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 161 | $ 0 | $ 0 | |||
Bisco Misr [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 125 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 117 | |||||
Payments to Noncontrolling Interests | $ 13 | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 95.00% | |||||
MassFoods [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 46 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 44 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Schedule of Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 19, 2015 | Jan. 03, 2015 | Dec. 28, 2013 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Current assets | $ 21 | |||
Property | 90 | |||
Goodwill | $ 4,968 | 81 | $ 4,971 | $ 5,051 |
Intangible assets and other | 46 | |||
Current liabilities | (24) | |||
Other non current liabilities, primarily deferred taxes | (33) | |||
Non-controlling interests | (20) | |||
Net assets acquired (liabilities assumed), net | $ 161 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | |||
Goodwill [Roll Forward] | ||||
Goodwill | $ 4,971 | $ 5,051 | ||
Goodwill, Acquired During Period | 81 | |||
Goodwill, Written off Related to Sale of Business Unit | (21) | |||
Goodwill, Translation Adjustments | (63) | (80) | ||
Goodwill | 4,968 | 4,971 | ||
U.S. Morning Foods | ||||
Goodwill [Roll Forward] | ||||
Goodwill | [1] | 131 | 131 | |
Goodwill, Acquired During Period | 0 | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Goodwill, Translation Adjustments | 0 | 0 | ||
Goodwill | 131 | 131 | [1] | |
U.S. Snacks | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 3,589 | 3,589 | ||
Goodwill, Acquired During Period | 0 | |||
Goodwill, Written off Related to Sale of Business Unit | (21) | |||
Goodwill, Translation Adjustments | 0 | 0 | ||
Goodwill | 3,568 | 3,589 | ||
U.S. Specialty | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 82 | 82 | ||
Goodwill, Acquired During Period | 0 | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Goodwill, Translation Adjustments | 0 | 0 | ||
Goodwill | 82 | 82 | ||
North America Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill | [1] | 465 | 470 | |
Goodwill, Acquired During Period | 0 | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Goodwill, Translation Adjustments | (9) | (5) | ||
Goodwill | 456 | 465 | [1] | |
Europe | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 389 | 452 | ||
Goodwill, Acquired During Period | 81 | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Goodwill, Translation Adjustments | (39) | (63) | ||
Goodwill | 431 | 389 | ||
Latin America | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 83 | 89 | ||
Goodwill, Acquired During Period | 0 | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Goodwill, Translation Adjustments | (7) | (6) | ||
Goodwill | 76 | 83 | ||
Asia Pacific | ||||
Goodwill [Roll Forward] | ||||
Goodwill | 232 | 238 | ||
Goodwill, Acquired During Period | 0 | |||
Goodwill, Written off Related to Sale of Business Unit | 0 | |||
Goodwill, Translation Adjustments | (8) | (6) | ||
Goodwill | $ 224 | $ 232 | ||
[1] | In conjunction with the establishment of the Kashi operating segment, included within the North America Other reportable segment, certain intangible assets were reallocated. All prior period balances were updated to conform with current presentation. |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | $ 132 | $ 136 | |
Additions | 9 | ||
VIE deconsolidation | (23) | ||
Currency translation adjustment | (2) | (4) | |
Gross carrying amount, ending balance | 116 | 132 | |
Accumulated amortization, beginning balance | 43 | 34 | |
VIE deconsolidation | (4) | ||
Amortization (a) | 8 | [1] | 9 |
Accumulated amortization, ending balance | 47 | 43 | |
Intangible assets subject to amortization net, beginning balance | 89 | 102 | |
Additions | 9 | ||
VIE deconsolidation | (19) | ||
Amortization (a) | (8) | [1] | (9) |
Currency translation adjustment | (2) | (4) | |
Intangible assets subject to amortization net, ending balance | 69 | 89 | |
Estimated aggregate annual amortization expense for next twelve months | 7 | ||
Estimated aggregate annual amortization expense for year two | 7 | ||
Estimated aggregate annual amortization expense for year three | 7 | ||
Estimated aggregate annual amortization expense for year four | 7 | ||
Estimated aggregate annual amortization expense for year five | 7 | ||
U.S. Morning Foods | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 8 | 8 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 8 | 8 | |
Accumulated amortization, beginning balance | 8 | 8 | |
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Accumulated amortization, ending balance | 8 | 8 | |
Intangible assets subject to amortization net, beginning balance | 0 | 0 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Currency translation adjustment | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | 0 | 0 | |
U.S. Snacks | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 65 | 65 | |
Additions | 0 | ||
VIE deconsolidation | (23) | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 42 | 65 | |
Accumulated amortization, beginning balance | 16 | 11 | |
VIE deconsolidation | (4) | ||
Amortization (a) | 4 | [1] | 5 |
Accumulated amortization, ending balance | 16 | 16 | |
Intangible assets subject to amortization net, beginning balance | 49 | 54 | |
Additions | 0 | ||
VIE deconsolidation | (19) | ||
Amortization (a) | (4) | [1] | (5) |
Currency translation adjustment | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | 26 | 49 | |
U.S. Specialty | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 0 | 0 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 0 | 0 | |
Accumulated amortization, beginning balance | 0 | 0 | |
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Accumulated amortization, ending balance | 0 | 0 | |
Intangible assets subject to amortization net, beginning balance | 0 | 0 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Currency translation adjustment | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | 0 | 0 | |
North America Other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 5 | 5 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 5 | 5 | |
Accumulated amortization, beginning balance | 4 | 4 | |
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Accumulated amortization, ending balance | 4 | 4 | |
Intangible assets subject to amortization net, beginning balance | 1 | 1 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Currency translation adjustment | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | 1 | 1 | |
Europe | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 38 | 42 | |
Additions | 9 | ||
VIE deconsolidation | 0 | ||
Currency translation adjustment | (2) | (4) | |
Gross carrying amount, ending balance | 45 | 38 | |
Accumulated amortization, beginning balance | 7 | 4 | |
VIE deconsolidation | 0 | ||
Amortization (a) | 4 | [1] | 3 |
Accumulated amortization, ending balance | 11 | 7 | |
Intangible assets subject to amortization net, beginning balance | 31 | 38 | |
Additions | 9 | ||
VIE deconsolidation | 0 | ||
Amortization (a) | (4) | [1] | (3) |
Currency translation adjustment | (2) | (4) | |
Intangible assets subject to amortization net, ending balance | 34 | 31 | |
Latin America | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 6 | 6 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 6 | 6 | |
Accumulated amortization, beginning balance | 6 | 6 | |
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Accumulated amortization, ending balance | 6 | 6 | |
Intangible assets subject to amortization net, beginning balance | 0 | 0 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 0 |
Currency translation adjustment | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | 0 | 0 | |
Asia Pacific | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross carrying amount, beginning balance | 10 | 10 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Currency translation adjustment | 0 | 0 | |
Gross carrying amount, ending balance | 10 | 10 | |
Accumulated amortization, beginning balance | 2 | 1 | |
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | 1 |
Accumulated amortization, ending balance | 2 | 2 | |
Intangible assets subject to amortization net, beginning balance | 8 | 9 | |
Additions | 0 | ||
VIE deconsolidation | 0 | ||
Amortization (a) | 0 | [1] | (1) |
Currency translation adjustment | 0 | 0 | |
Intangible assets subject to amortization net, ending balance | $ 8 | $ 8 | |
[1] | The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $7 million per year. |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets - Intangible Assets Not Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | |||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | $ 2,206 | $ 2,265 | ||
Additions | 36 | |||
Currency translation adjustment | (43) | (59) | ||
Intangible assets not subject to amortization, ending balance | 2,199 | 2,206 | ||
U.S. Morning Foods | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | [1] | 0 | 0 | |
Additions | 0 | |||
Currency translation adjustment | 0 | 0 | ||
Intangible assets not subject to amortization, ending balance | 0 | 0 | [1] | |
U.S. Snacks | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | 1,625 | 1,625 | ||
Additions | 0 | |||
Currency translation adjustment | 0 | 0 | ||
Intangible assets not subject to amortization, ending balance | 1,625 | 1,625 | ||
U.S. Specialty | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | 0 | 0 | ||
Additions | 0 | |||
Currency translation adjustment | 0 | 0 | ||
Intangible assets not subject to amortization, ending balance | 0 | 0 | ||
North America Other | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | [1] | 158 | 158 | |
Additions | 0 | |||
Currency translation adjustment | 0 | 0 | ||
Intangible assets not subject to amortization, ending balance | 158 | 158 | [1] | |
Europe | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | 423 | 482 | ||
Additions | 36 | |||
Currency translation adjustment | (43) | (59) | ||
Intangible assets not subject to amortization, ending balance | 416 | 423 | ||
Latin America | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | 0 | 0 | ||
Additions | 0 | |||
Currency translation adjustment | 0 | 0 | ||
Intangible assets not subject to amortization, ending balance | 0 | 0 | ||
Asia Pacific | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets not subject to amortization, beginning balance | 0 | 0 | ||
Additions | 0 | |||
Currency translation adjustment | 0 | 0 | ||
Intangible assets not subject to amortization, ending balance | $ 0 | $ 0 | ||
[1] | In conjunction with the establishment of the Kashi operating segment, included within the North America Other reportable segment, certain intangible assets were reallocated. All prior period balances were updated to conform with current presentation. |
Investment in Unconsolidated 48
Investment in Unconsolidated Entities Investment in Unconsolidated Entities - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ 456 | $ 6 | $ 6 | |
Multipro [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Interest in Joint Venture | $ 445 | |||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Payments to Acquire Equity Method Investments | $ 368 | |||
Purchase option [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Acquire Equity Method Investments | $ 77 | |||
Purchase option [Member] | Multipro [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 24.50% |
Investment in Unconsolidated 49
Investment in Unconsolidated Entities - Summarized Combined Financial Information (Details) $ in Millions | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Net sales | $ 289 |
Gross profit | 44 |
Income before income taxes | 12 |
Net income | 5 |
Current assets | 78 |
Non-current assets | 57 |
Current liabilities | (81) |
Non-current liabilities | $ (25) |
Restructuring and Cost Reduct50
Restructuring and Cost Reduction Activities Restructuring and Cost Reduction Activities Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Oct. 03, 2015 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring plan, number of years | 5 years | |||
Restructuring and related costs since inception of program | $ 829 | |||
Restructuring charge | 323 | $ 298 | ||
Restructuring and Related Cost, Incurred Cost | 323 | 298 | $ 250 | |
Exit cost reserve | 88 | 110 | 78 | |
Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 4 | 2 | ||
Cost of Goods Sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 191 | 152 | 195 | |
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Incurred Cost | 128 | 144 | 55 | |
U.S. Morning Foods | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 218 | |||
Restructuring and Related Cost, Incurred Cost | 58 | 60 | 109 | |
U.S. Snacks | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 126 | |||
Restructuring and Related Cost, Incurred Cost | 50 | 57 | 30 | |
U.S. Specialty | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 11 | |||
Restructuring and Related Cost, Incurred Cost | 5 | 3 | 5 | |
North America Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 90 | |||
Restructuring and Related Cost, Incurred Cost | 63 | 18 | 11 | |
Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 173 | |||
Restructuring and Related Cost, Incurred Cost | 74 | 80 | 27 | |
Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 16 | |||
Restructuring and Related Cost, Incurred Cost | 4 | 8 | 5 | |
Asia Pacific | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 74 | |||
Restructuring and Related Cost, Incurred Cost | 13 | 37 | 32 | |
Asset related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 146 | |||
Restructuring charge | 103 | 37 | ||
Restructuring and Related Cost, Incurred Cost | 103 | 37 | 10 | |
Exit cost reserve | 0 | 0 | 0 | |
Employee related cost | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 259 | |||
Restructuring charge | 62 | 90 | ||
Restructuring and Related Cost, Incurred Cost | 62 | 90 | 114 | |
Exit cost reserve | 55 | 96 | 66 | |
Other cost | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 319 | |||
Restructuring charge | 140 | 150 | ||
Restructuring and Related Cost, Incurred Cost | 140 | 150 | 56 | |
Exit cost reserve | 33 | 14 | 12 | |
Asset impairment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 105 | |||
Restructuring charge | 18 | 21 | ||
Restructuring and Related Cost, Incurred Cost | 18 | 21 | 70 | |
Exit cost reserve | $ 0 | 0 | 0 | |
Project K | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring plan, number of years | 4 years | |||
Restructuring and related costs since inception of program | $ 817 | |||
Project K | Revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 6 | |||
Project K | Cost of Goods Sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 517 | |||
Project K | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 294 | |||
Project K | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 1,200 | |||
Estimated after-tax cash costs for program, including incremental capital investments | 900 | |||
Project K | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 1,400 | |||
Estimated after-tax cash costs for program, including incremental capital investments | $ 1,100 | |||
Project K | U.S. Morning Foods | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 18.00% | |||
Project K | U.S. Snacks | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 13.00% | |||
Project K | U.S. Specialty | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 1.00% | |||
Project K | North America Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 10.00% | |||
Project K | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 17.00% | |||
Project K | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 2.00% | |||
Project K | Asia Pacific | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 6.00% | |||
Project K | Asset related costs | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | $ 400 | |||
Project K | Asset related costs | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 450 | |||
Project K | Employee related cost | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 400 | |||
Project K | Employee related cost | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 450 | |||
Project K | Other cost | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 400 | |||
Project K | Other cost | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 500 | |||
ZBB | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | 12 | |||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs since inception of program | 121 | |||
Restructuring and Related Cost, Incurred Cost | $ 56 | $ 35 | $ 31 | |
Corporate | Project K | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost expected cost allocation | 33.00% |
Restructuring and Cost Reduct51
Restructuring and Cost Reduction Activities Schedule of Restructuring and Cost Reduction Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | $ 323 | $ 298 | $ 250 |
Program cost to date | 829 | ||
Employee related cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 62 | 90 | 114 |
Program cost to date | 259 | ||
Asset related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 103 | 37 | 10 |
Program cost to date | 146 | ||
Asset impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 18 | 21 | 70 |
Program cost to date | 105 | ||
Other cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 140 | 150 | 56 |
Program cost to date | 319 | ||
U.S. Morning Foods | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 58 | 60 | 109 |
Program cost to date | 218 | ||
U.S. Snacks | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 50 | 57 | 30 |
Program cost to date | 126 | ||
U.S. Specialty | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 5 | 3 | 5 |
Program cost to date | 11 | ||
North America Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 63 | 18 | 11 |
Program cost to date | 90 | ||
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 74 | 80 | 27 |
Program cost to date | 173 | ||
Latin America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 4 | 8 | 5 |
Program cost to date | 16 | ||
Asia Pacific | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 13 | 37 | 32 |
Program cost to date | 74 | ||
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charge | 56 | $ 35 | $ 31 |
Program cost to date | $ 121 |
Restructuring and Cost Reduct52
Restructuring and Cost Reduction Activities Restructuring and Cost Reduction Reserves Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | $ 110 | $ 78 |
2015 restructuring charge | 323 | 298 |
Cash payments | (271) | (256) |
Non-cash charges and other | (74) | (10) |
Liability, ending balance | 88 | 110 |
Employee related cost | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 96 | 66 |
2015 restructuring charge | 62 | 90 |
Cash payments | (116) | (84) |
Non-cash charges and other | 13 | 24 |
Liability, ending balance | 55 | 96 |
Asset impairment | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
2015 restructuring charge | 18 | 21 |
Cash payments | 0 | 0 |
Non-cash charges and other | (18) | (21) |
Liability, ending balance | 0 | 0 |
Asset related costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
2015 restructuring charge | 103 | 37 |
Cash payments | (34) | (24) |
Non-cash charges and other | (69) | (13) |
Liability, ending balance | 0 | 0 |
Other cost | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 14 | 12 |
2015 restructuring charge | 140 | 150 |
Cash payments | (121) | (148) |
Non-cash charges and other | 0 | 0 |
Liability, ending balance | $ 33 | $ 14 |
Equity Narrative (Details)
Equity Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Sep. 28, 2013 | Jun. 29, 2013 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2015 | Feb. 28, 2014 | May. 31, 2013 | Apr. 30, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,700,000 | 5,000,000 | 5,000,000 | ||||||
Shares issued to employees and directors under various benefit plans and stock purchase programs | 5,000,000 | 4,000,000 | 10,000,000 | ||||||
Common stock repurchases (in shares) | 11,000,000 | 11,000,000 | 9,000,000 | ||||||
Common stock repurchased | $ 731,000,000 | $ 690,000,000 | $ 544,000,000 | ||||||
April 2013 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | ||||||||
May 2013 ShareRepurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Common stock repurchases (in shares) | 600,000 | 4,900,000 | |||||||
Accelerated share repurchases, payment | $ 355,000,000 | ||||||||
February 2014 Share Repurchase Program | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 | ||||||||
December 2015 Share Repurchase Program [Member] | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,500,000,000 |
Equity Schedule of Earnings Per
Equity Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Equity [Abstract] | |||||||||||
Net income (loss) attributable to Kellogg Company, Basic | $ (41) | $ 205 | $ 223 | $ 227 | $ (293) | $ 224 | $ 295 | $ 406 | $ 614 | $ 632 | $ 1,807 |
Average shares outstanding, Basic (in shares) | 354 | 358 | 363 | ||||||||
Earnings per share, Basic (in shares) | $ (0.12) | $ 0.58 | $ 0.63 | $ 0.64 | $ (0.82) | $ 0.63 | $ 0.82 | $ 1.13 | $ 1.74 | $ 1.76 | $ 4.98 |
Average shares outstanding, Dilutive potential common shares (in shares) | 2 | 2 | 2 | ||||||||
Earnings per share, Dilutive potential common shares (in dollars per share) | $ (0.02) | $ (0.01) | $ (0.04) | ||||||||
Net income attributed to Kellogg Company, Diluted | $ 614 | $ 632 | $ 1,807 | ||||||||
Average shares outstanding, Diluted (in shares) | 356 | 360 | 365 | ||||||||
Earnings per share, Diluted (in dollars per share) | $ (0.12) | $ 0.58 | $ 0.63 | $ 0.64 | $ (0.82) | $ 0.62 | $ 0.82 | $ 1.12 | $ 1.72 | $ 1.75 | $ 4.94 |
Equity Equity - Changes in Comp
Equity Equity - Changes in Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Equity [Abstract] | |||
Net income | $ 614 | $ 633 | $ 1,808 |
Foreign currency translation adjustment before tax | (170) | (231) | (24) |
Foreign currency translation adjustments tax (expense) benefit | (26) | (32) | 0 |
Foreign currency translation adjustments after tax | (196) | (263) | (24) |
Unrealized gain (loss) on cash flow hedges, pre-tax | 8 | (35) | 11 |
Unrealized gain (loss) on cash flow hedges, tax (expense) benefit | (3) | 18 | (1) |
Unrealized gain (loss) on cash flow hedges, after-tax | 5 | (17) | 10 |
Reclassifications to net income, pre-tax | (23) | (10) | (6) |
Reclassifications to net income, tax (expense) benefit | 3 | 2 | 0 |
Reclassification to net income, after-tax | (20) | (8) | (6) |
Net experience gain (loss) | 0 | (8) | 17 |
Net experience gain (loss), tax (expense) benefit | 0 | 3 | (6) |
Net experience gain (loss), after tax | 0 | (5) | 11 |
Prior service credit (cost) | 63 | 10 | 9 |
Prior service credit (cost), tax (expense) benefit | (24) | (3) | (2) |
Prior service credit (cost), after-tax | 39 | 7 | 7 |
Net experience loss, pre-tax | 3 | 3 | 5 |
Net experience loss, tax (expense) benefit | (1) | (1) | (2) |
Net experience loss, after-tax | 2 | 2 | 3 |
Prior service cost | 9 | 10 | 13 |
Prior service cost, tax (expense) benefit | (3) | (3) | (4) |
Prior service cost, after-tax | 6 | 7 | 9 |
Other Comprehensive Income (Loss), before Tax | (110) | (261) | 25 |
Other Comprehensive Income (Loss), Tax | (54) | (16) | (15) |
Other Comprehensive Income (loss) | (164) | (277) | 10 |
Comprehensive income | 450 | 356 | 1,818 |
Net income (loss) attributable to noncontrolling interests | 0 | 1 | 1 |
Other comprehensive income (loss) attributable to noncontrolling interests | (1) | 0 | 0 |
Comprehensive income attributable to Kellogg Company | $ 451 | $ 355 | $ 1,817 |
Equity Reclassifications Out of
Equity Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
COGS | $ (8,844) | $ (9,517) | $ (8,689) | |
SGA | (3,590) | (4,039) | (3,266) | |
Interest expense | (227) | (209) | (235) | |
Net experience loss, pre-tax | 3 | 3 | 5 | |
Prior service cost | 9 | 10 | 13 | |
Total before tax | 773 | 825 | 2,606 | |
Tax (expense) benefit | (159) | (186) | (792) | |
Net income | 614 | 633 | 1,808 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net income | (12) | 1 | 6 | |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total before tax | (23) | (10) | (6) | |
Tax (expense) benefit | 3 | 2 | 0 | |
Net income | (20) | (8) | (6) | |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
COGS | (40) | (5) | (10) | |
SGA | 2 | (3) | (2) | |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense | 3 | (9) | (4) | |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
COGS | 12 | 7 | 10 | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of postretirement and postemployment benefits | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net experience loss, pre-tax | [1] | 3 | 3 | 5 |
Prior service cost | [1] | 9 | 10 | 13 |
Total before tax | 12 | 13 | 18 | |
Tax (expense) benefit | (4) | (4) | (6) | |
Net income | $ 8 | $ 9 | $ 12 | |
[1] | See Note 9 and Note 10 for further details. |
Equity Summary of Accumulated O
Equity Summary of Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Equity [Abstract] | ||
Cash flow hedges — unrealized net gain (loss) | $ (39) | $ (24) |
Foreign currency translation adjustments | (1,314) | (1,119) |
Postretirement and postemployment benefits: | ||
Net experience loss | (16) | (18) |
Prior service cost | (7) | (52) |
Total accumulated other comprehensive income (loss) | ||
Accumulated other comprehensive income (loss) | $ (1,376) | $ (1,213) |
Equity Noncontrolling Interest
Equity Noncontrolling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 31, 2012 | |
Noncontrolling Interest [Line Items] | ||||
Non-cash gain from deconsolidation | $ 49 | $ 0 | $ 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Convertible debt | $ 44 | |||
Percentage debt convertible to equity | 85.00% | |||
Other Income (Expense), Net [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Non-cash charge (reversal) | 19 | |||
Selling, General and Administrative Expenses | U.S. Snacks | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Non-cash gain from deconsolidation | $ 67 |
Leases and Other Commitment L59
Leases and Other Commitment Leases and Other Commitments(Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Leases [Abstract] | |||
Rent expense on all operating leases | $ 189 | $ 183 | $ 174 |
Capital lease agreements (less than) | 1 | $ 1 | $ 1 |
Operating Leases, 2016 | 171 | ||
Operating Leases, 2017 | 152 | ||
Operating Leases, 2018 | 119 | ||
Operating Leases, 2019 | 81 | ||
Operating Leases, 2020 | 62 | ||
Operating Leases, 2021 and beyond | 87 | ||
Capital Leases, 2016 | 2 | ||
Capital Leases, 2017 | 1 | ||
Capital Leases, 2018 | 1 | ||
Capital Leases, 2019 | 0 | ||
Capital Leases, 2020 | 0 | ||
Capital Leases, 2021 and beyond | 1 | ||
Operating leases, future minimum payments | 672 | ||
Capital leases, future minimum payments | 5 | ||
Amount representing interest | 0 | ||
Obligations under capital leases | 5 | ||
Obligations due within one year | (2) | ||
Long-term obligations under capital leases | $ 3 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,300 | |||
Principal repayments on long-term debt in 2016 | 1,262 | |||
Principal repayments on long-term debt in 2017 | 627 | |||
Principal repayments on long-term debt in 2018 | 407 | |||
Principal repayments on long-term debt in 2019 | 506 | |||
Principal repayments on long-term debt in 2020 | 851 | |||
Principal repayments on long-term debt in 2021 and beyond | 2,864 | |||
Interest expense, capitalized | 4 | $ 5 | $ 2 | |
4.25% U.S. Dollar Notes Due 2013 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 750 | |||
Unsecured Five Year Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | |||
Letter of Credit [Member] | Unsecured Five Year Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 75 | |||
U.S. Swingline Loans [Member] | Unsecured Five Year Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 200 | |||
European Swingline Loans [Member] | Unsecured Five Year Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 400 | |||
Euro Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 750 | |||
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 261 | $ 96 |
Debt Components of Notes Payabl
Debt Components of Notes Payable (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Components of Notes Payable | ||
Notes payable | $ 1,204 | $ 828 |
U.S. Commercial Paper | ||
Components of Notes Payable | ||
Notes payable | $ 899 | $ 681 |
Debt Instrument, Interest Rate, Effective Percentage | 0.45% | 0.36% |
Europe Commerical Paper | ||
Components of Notes Payable | ||
Notes payable | $ 261 | $ 96 |
Debt Instrument, Interest Rate, Effective Percentage | 0.01% | 0.09% |
Bank Borrowings | ||
Components of Notes Payable | ||
Notes payable | $ 44 | $ 51 |
Debt Schedule of Long-term Debt
Debt Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Mar. 31, 2015 | Jan. 03, 2015 | May. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 14, 2013 | May. 31, 2012 | Nov. 30, 2011 | May. 31, 2011 | Dec. 31, 2010 | Nov. 30, 2009 | May. 31, 2009 | Mar. 31, 2001 | |
Debt Instrument [Line Items] | |||||||||||||||
Other long-term debt | $ 35 | $ 20 | |||||||||||||
Long-term debt, including current maturities of long-term debt | 6,555 | 6,542 | |||||||||||||
Current maturities of long-term debt | (1,266) | (607) | |||||||||||||
Long-term debt | 5,289 | 5,935 | |||||||||||||
7.45% U.S. Dollar Debentures Due 2031 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [1] | 1,090 | 1,090 | ||||||||||||
Debt instrument, stated interest rate | 7.45% | ||||||||||||||
1.25% Euro Note Due 2025 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [2] | 651 | 0 | ||||||||||||
Debt instrument, stated interest rate | 1.25% | ||||||||||||||
2.75% U.S. Dollar Note Due 2023 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [3] | 210 | 210 | ||||||||||||
Debt instrument, stated interest rate | 2.75% | ||||||||||||||
3.125% U.S. Dollar Debentures Due 2022 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [4] | 369 | 357 | ||||||||||||
Debt instrument, stated interest rate | 3.125% | ||||||||||||||
1.75% Euro Notes Due 2021 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [5] | 541 | 597 | ||||||||||||
Debt instrument, stated interest rate | 1.75% | ||||||||||||||
4.0% U.S. Dollar Notes Due 2020 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [6] | 861 | 842 | ||||||||||||
Debt instrument, stated interest rate | 4.00% | ||||||||||||||
4.15% U.S. Dollar Notes Due 2019 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [7] | 514 | 497 | ||||||||||||
Debt instrument, stated interest rate | 4.15% | ||||||||||||||
3.25% U.S. Dollar Notes Due 2018 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [8] | 412 | 410 | ||||||||||||
Debt instrument, stated interest rate | 3.25% | ||||||||||||||
2.05% Canadian Dollar Notes Due 2017 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [9] | 217 | 259 | ||||||||||||
Debt instrument, stated interest rate | 2.05% | ||||||||||||||
1.75% U.S. Dollar Notes Due 2017 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [10] | 400 | 396 | ||||||||||||
Debt instrument, stated interest rate | 1.75% | ||||||||||||||
1.875% U.S. Dollar Notes Due 2016 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [11] | 502 | 504 | ||||||||||||
Debt instrument, stated interest rate | 1.875% | ||||||||||||||
4.45% U.S. Notes Due 2016 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [12] | 753 | 760 | ||||||||||||
Debt instrument, stated interest rate | 4.45% | ||||||||||||||
1.125% U.S. Dollar Notes Due 2015 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [13] | 0 | 350 | ||||||||||||
Debt instrument, stated interest rate | 1.125% | ||||||||||||||
Floating Rate U.S. Dollar Note Due 2015 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes payable | [14] | $ 0 | $ 250 | ||||||||||||
Debt instrument, stated interest rate | 0.23% | ||||||||||||||
2.10% Canadian Dollar Notes Due 2014 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 2.10% | ||||||||||||||
4.25% U.S. Dollar Notes Due 2013 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 4.25% | ||||||||||||||
[1] | In March 2001, the Company issued long-term debt instruments, primarily to finance the acquisition of Keebler Foods Company, of which $1.1 billion of thirty-year 7.45% Debentures remain outstanding. The effective interest rate on the Debentures, reflecting issuance discount and hedge settlement, was 7.54%. The Debentures contain standard events of default and covenants, and can be redeemed in whole or in part by the Company at any time at prices determined under a formula (but not less than 100% of the principal amount plus unpaid interest to the redemption date). | ||||||||||||||
[2] | In March 2015, the Company issued €600 million (approximately $651 million at January 2, 2016, which reflects the discount and translation adjustments) of ten-year 1.25% Euro Notes due 2025, using the proceeds from these Notes for general corporate purposes, which included repayment of a portion of the Company’s commercial paper borrowings. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.07%. The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. | ||||||||||||||
[3] | In February 2013, the Company issued $400 million of ten-year 2.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including, together with cash on hand, to repay a portion of the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The effective interest rate on these Notes, reflecting issuance discount and hedge settlement, was 2.74% . In March 2014, the Company redeemed $189 million of the Notes. In connection with the debt redemption, the Company reduced interest expense by $10 million , including $1 million of accelerated gains on interest rate swaps previously recorded in accumulated other comprehensive income, and incurred $2 million expense, recorded in Other Income, Expense (net), related to acceleration of fees on the redeemed debt and fees related to the tender offer. | ||||||||||||||
[4] | In May 2012, the Company issued $700 million of ten-year 3.125% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 2.69% at January 2, 2016. In March 2014, the Company redeemed $342 million of the Notes. In connection with the debt redemption, the Company reduced interest expense by $2 million and incurred $2 million 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 entered into interest rate swaps in 2013 and 2014 with notional amounts totaling $200 million and $158 million, respectively, which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $13 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $1 million, at January 3, 2015, recorded as an increase in the hedged debt balance. | ||||||||||||||
[5] | In May 2014, the Company issued €500 million (approximately $541 million at January 2, 2016, 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 effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.18% . The Notes were designated as a net investment hedge of the Company’s investment in its Europe subsidiary when issued. | ||||||||||||||
[6] | In December 2010, the Company issued $1.0 billion of ten-year 4.0% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for incremental pension and postretirement benefit plan contributions and to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 2.98% at January 2, 2016. In March 2014, the Company redeemed $150 million of the Notes. In connection with the debt redemption, the Company incurred $12 million of interest expense offset by $7 million of accelerated gains on interest rate swaps previously recorded in accumulated other comprehensive income, and incurred $1 million 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 entered into interest rate swaps in 2013 and 2014 with notional amounts totaling $400 million and $300 million , respectively, which effectively converted a portion of these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $14 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million, at January 3, 2015, and was recorded as a decrease in the hedged debt balance. | ||||||||||||||
[7] | In November 2009, the Company issued $500 million of ten-year 4.15% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its 6.6% U.S. Dollar Notes due 2011. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 3.52% at January 2, 2016. In 2012, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company entered into and terminated a series of interest rate swaps and as of January 2, 2016 had terminated all interest rate swaps. The $15 million gain on termination at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $2 million at January 3, 2015, and was recorded as a decrease in the hedged debt balance. | ||||||||||||||
[8] | In May 2011, the Company issued $400 million of seven-year 3.25% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes including repayment of a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps, was 2.52% at January 2, 2016. In 2011, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2013, the Company terminated all of the interest rate swaps and subsequently entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company terminated all interest rate swaps, and the resulting unamortized gain of $12 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million at January 3, 2015, and was recorded as a decrease in the hedged debt balance. | ||||||||||||||
[9] | In May 2014, the Company issued Cdn. $300 million (approximately $217 million USD at January 2, 2016, 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 2014 at maturity. The effective interest rate on the Notes, reflecting issuance discount and hedge settlement, was 2.10% . | ||||||||||||||
[10] | In May 2012, the Company issued $400 million of five-year 1.75% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount and interest rate swaps, was 1.71% at January 2, 2016. In 2013, the Company entered into interest rate swaps with notional amounts totaling $400 million, which effectively converted the Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. During 2015, the Company terminated all interest rate swaps, and the resulting unamortized gain of $1 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. The fair value adjustment for the interest rate swaps was $3 million, at January 3, 2015, and was recorded as a decrease in the hedged debt balance. | ||||||||||||||
[11] | In November 2011, the Company issued $500 million of five-year 1.875% fixed rate U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes including repayment of a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 1.63% at January 2, 2016. In 2012, the Company entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2013, the Company terminated all of the interest rate swaps and subsequently entered into interest rate swaps which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2014, the Company terminated all of the interest rate swaps. The unamortized gain of $2 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. | ||||||||||||||
[12] | In May 2009, the Company issued $750 million of seven-year 4.45% fixed rate U.S. Dollar Notes, using net proceeds from these Notes to retire a portion of its commercial paper. The effective interest rate on these Notes, reflecting issuance discount, hedge settlement and interest rate swaps was 4.10% at January 2, 2016. The Company entered into interest rate swaps in 2011 and 2012 with notional amounts totaling $200 million and $550 million, respectively, which effectively converted these Notes from a fixed rate to a floating rate obligation. These derivative instruments were designated as fair value hedges of the debt obligation. In 2013, the Company terminated all of the interest rate swaps. The unamortized gain of $3 million at January 2, 2016 will be amortized to interest expense over the remaining term of the Notes. | ||||||||||||||
[13] | In May 2012, the Company issued $350 million of three-year 1.125% U.S. Dollar Notes, using net proceeds from these Notes for general corporate purposes, including financing a portion of the acquisition of Pringles. The effective interest rate on these Notes, reflecting issuance discount, was 1.16%. The Company redeemed these Notes in May 2015. | ||||||||||||||
[14] | In February 2013, the Company issued $250 million of floating-rate U.S. Dollar Notes bearing interest at LIBOR plus 0.23% due February 2015. The proceeds from these Notes were used for general corporate purposes, including, together with cash on hand, to repay a portion the Company’s $750 million 4.25% U.S. Dollar Notes that matured in March 2013. The Company redeemed these Notes in February 2015. |
Debt Long-term Debt Footnote A
Debt Long-term Debt Footnote A (Details) - 7.45% U.S. Dollar Debentures Due 2031 [Member] $ in Billions | Mar. 31, 2001USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 1.1 |
Debt Instrument, Term | 30 years |
Debt instrument, stated interest rate | 7.45% |
Debt Instrument, Interest Rate, Effective Percentage | 7.54% |
Debt Long-term Debt Footnote B
Debt Long-term Debt Footnote B (Details) $ in Millions | 1 Months Ended | ||
Mar. 31, 2015EUR (€) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Notional amounts of interest rate swaps | $ 1,680 | $ 4,214 | |
1.25% Euro Note Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | € 600,000,000 | $ 651 | |
Debt Instrument, Term | 10 years | ||
Debt instrument, stated interest rate | 1.25% | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.07% |
Debt Long-term Debt Footnote C
Debt Long-term Debt Footnote C (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Mar. 31, 2014 | Feb. 28, 2013 | Jan. 02, 2016 | Jan. 03, 2015 | Feb. 14, 2013 | |
Debt Instrument [Line Items] | |||||
Notional amounts of interest rate swaps | $ 1,680 | $ 4,214 | |||
2.75% U.S. Dollar Note Due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 400 | ||||
Debt Instrument, Term | 10 years | ||||
Debt instrument, stated interest rate | 2.75% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 2.74% | ||||
Debt Instrument Amount Redeemed | $ 189 | ||||
Reduction in interest expense | 10 | ||||
Debt Instrument Accelerated Gains | 1 | ||||
Debt instrument, fee amount | $ 2 | ||||
4.25% U.S. Dollar Notes Due 2013 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 750 | ||||
Debt instrument, stated interest rate | 4.25% |
Debt Long-term Debt Footnote D
Debt Long-term Debt Footnote D (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | May. 31, 2012 | Jan. 03, 2015 | Jan. 02, 2016 | Sep. 30, 2014 | May. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Notional amounts of interest rate swaps | $ 4,214 | $ 1,680 | ||||
3.125% U.S. Dollar Debentures Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 700 | |||||
Debt Instrument, Term | 10 years | |||||
Debt instrument, stated interest rate | 3.125% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.69% | |||||
Debt Instrument Amount Redeemed | $ 342 | |||||
Reduction in interest expense | 2 | |||||
Debt instrument, fee amount | $ 2 | |||||
Notional amounts of interest rate swaps | $ 158 | $ 200 | ||||
Unamortized gain on termination of interest rate swaps | $ 13 | |||||
Fair value adjustment for interest rate swaps | $ 1 |
Debt Long-term Debt Footnote E
Debt Long-term Debt Footnote E (Details) - 1.75% Euro Notes Due 2021 [Member] € in Millions, $ in Millions | 1 Months Ended | |
May. 31, 2014EUR (€) | Jan. 02, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 500 | $ 541 |
Debt Instrument, Term | 7 years | |
Debt instrument, stated interest rate | 1.75% | |
Debt Instrument, Interest Rate, Effective Percentage | 2.18% |
Debt Long-term Debt Footnote F
Debt Long-term Debt Footnote F (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | Dec. 31, 2010 | Jan. 03, 2015 | Jan. 02, 2016 | Sep. 30, 2014 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | ||||||
Notional amounts of interest rate swaps | $ 4,214 | $ 1,680 | ||||
4.0% U.S. Dollar Notes Due 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notional amounts of interest rate swaps | $ 300 | $ 400 | ||||
Unamortized gain on termination of interest rate swaps | $ 14 | |||||
Debt Instrument, Face Amount | $ 1,000 | |||||
Debt Instrument, Term | 10 years | |||||
Debt instrument, stated interest rate | 4.00% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 2.98% | |||||
Fair value adjustment for interest rate swaps | $ 3 | |||||
Debt Instrument Amount Redeemed | $ 150 | |||||
Interest expense | 12 | |||||
Debt Instrument Accelerated Gains | 7 | |||||
Debt instrument, fee amount | $ 1 |
Debt Long-term Debt Footnote G
Debt Long-term Debt Footnote G (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2009 | Jan. 03, 2015 | Jan. 02, 2016 | |
Debt Instrument [Line Items] | |||
Notional amounts of interest rate swaps | $ 4,214 | $ 1,680 | |
4.15% U.S. Dollar Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | ||
Debt Instrument, Term | 10 years | ||
Debt instrument, stated interest rate | 4.15% | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.52% | ||
Unamortized gain on termination of interest rate swaps | $ 15 | ||
Fair value adjustment for interest rate swaps | $ 2 | ||
6.6% U.S. Dollar Notes Due 2011 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate | 6.60% |
Debt Long-term Debt Footnote H
Debt Long-term Debt Footnote H (Details) - USD ($) $ in Millions | 12 Months Ended | 55 Months Ended | ||
Jan. 03, 2015 | Nov. 30, 2015 | Jan. 02, 2016 | May. 31, 2011 | |
Debt Instrument [Line Items] | ||||
Notional amounts of interest rate swaps | $ 4,214 | $ 1,680 | ||
3.25% U.S. Dollar Notes Due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 400 | |||
Debt Instrument, Term | 7 years | |||
Debt instrument, stated interest rate | 3.25% | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.52% | |||
Unamortized gain on termination of interest rate swaps | $ 12 | |||
Fair value adjustment for interest rate swaps | $ 3 |
Debt Long-term Debt Footnote I
Debt Long-term Debt Footnote I (Details) CAD in Millions, $ in Millions | 1 Months Ended | ||
May. 31, 2014CAD | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Notional amounts of interest rate swaps | $ | $ 1,680 | $ 4,214 | |
2.05% Canadian Dollar Notes Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | CAD 300 | $ 217 | |
Debt Instrument, Term | 3 years | ||
Debt instrument, stated interest rate | 2.05% | ||
2.10% Canadian Dollar Notes Due 2014 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | CAD | CAD 300 | ||
Debt instrument, stated interest rate | 2.10% | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.10% |
Debt Long-term Debt Footnote J
Debt Long-term Debt Footnote J (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
May. 31, 2012 | Jan. 03, 2015 | Jan. 02, 2016 | May. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Notional amount of derivatives | $ 4,214 | $ 1,680 | ||
1.75% U.S. Dollar Notes Due 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 400 | |||
Debt Instrument, Term | 5 years | |||
Debt instrument, stated interest rate | 1.75% | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.71% | |||
Notional amount of derivatives | $ 400 | |||
Fair value adjustment for interest rate swaps | $ 3 | |||
Unamortized gain on termination of interest rate swaps | $ 1 |
Debt Long-term Debt Footnote K
Debt Long-term Debt Footnote K (Details) - 1.875% U.S. Dollar Notes Due 2016 [Member] - USD ($) $ in Millions | 1 Months Ended | |
Nov. 30, 2011 | Jan. 02, 2016 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 5 years | |
Debt Instrument, Face Amount | $ 500 | |
Debt instrument, stated interest rate | 1.875% | |
Debt Instrument, Interest Rate, Effective Percentage | 1.63% | |
Unamortized gain on termination of interest rate swaps | $ 2 |
Debt Long-term Debt Footnote L
Debt Long-term Debt Footnote L (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
May. 31, 2009 | Jan. 02, 2016 | Jan. 03, 2015 | Mar. 31, 2012 | Feb. 28, 2011 | |
Debt Instrument [Line Items] | |||||
Notional amount of derivatives | $ 1,680 | $ 4,214 | |||
4.45% U.S. Notes Due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 750 | ||||
Debt Instrument, Term | 7 years | ||||
Debt instrument, stated interest rate | 4.45% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.10% | ||||
Notional amount of derivatives | $ 550 | $ 200 | |||
Unamortized gain on termination of interest rate swaps | $ 3 |
Debt Long-term Debt Footnote M
Debt Long-term Debt Footnote M (Details) - 1.125% U.S. Dollar Notes Due 2015 [Member] - USD ($) $ in Millions | 1 Months Ended | |
May. 31, 2012 | May. 31, 2014 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 350 | |
Debt Instrument, Term | 3 years | |
Debt instrument, stated interest rate | 1.125% | |
Debt Instrument, Interest Rate, Effective Percentage | 1.16% |
Debt Long-term Debt Footnote N
Debt Long-term Debt Footnote N (Details) - USD ($) $ in Millions | Feb. 28, 2014 | Feb. 28, 2013 |
Floating Rate U.S. Dollar Note Due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250 | |
Debt instrument, stated interest rate | 0.23% | |
4.25% U.S. Dollar Notes Due 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 750 | |
Debt instrument, stated interest rate | 4.25% |
Stock Compensation Equity based
Stock Compensation Equity based compensation programs (Details) - USD ($) | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Feb. 28, 2013 | |
2013 Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 22,000,000 | |||
Vesting period, years | 3 years | |||
Options granted remaining authorized, but unissued, shares | 16,000,000 | |||
Contractual terms, years | 10 years | |||
Shares, Issued | 2 | |||
Shares Reduced From Remaining Available | 1 | |||
Shares Reduced From Outstanding Award | 1 | |||
2009 Non Employee Director Stock Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 500,000 | |||
Vesting period, years | 3 years | |||
Number of shares awarded | 26,877 | 23,890 | 26,504 | |
2002 Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 300,000 | |||
Maximum number of shares allowed to be issued under plan | 2,500,000 | |||
Purchase price, percentage of fair market value of stock on last day of quarterly purchase period | 95.00% | |||
Maximum value of purchases for any employee in any calendar year | $ 25,000 | |||
Number of shares purchased by employees under plan | 73,000 | 75,000 | 85,000 | |
International Subsidiary Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares purchased by employees under plan | 48,000 | 58,000 | 58,000 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
2009 Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, years | 3 years | |||
Contractual terms, years | 10 years |
Stock Compensation Schedule of
Stock Compensation Schedule of Compensation Expense for Equity Programs and Related Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock compensation | $ 55 | $ 41 | $ 38 |
Related income tax benefit | 20 | $ 15 | $ 14 |
Non-vested stock-based compensation awards not yet recognized | $ 62 | ||
Weighted-average period of recognition, years | 2 years |
Stock Compensation Cash used to
Stock Compensation Cash used to settle equity instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total cash received from option exercises and similar instruments | $ 261 | $ 217 | $ 475 |
Windfall benefits classified as financing cash flow | $ 14 | $ 11 | $ 24 |
Stock Compensation Fair Value A
Stock Compensation Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average expected volatility | 16.00% | 15.00% | 15.00% |
Weighted-average expected term (years) | 6 years 10 months 13 days | 7 years 4 months 2 days | 7 years 5 months 9 days |
Weighted-average risk-free interest rate | 1.98% | 2.35% | 1.49% |
Dividend yield | 3.00% | 3.00% | 2.90% |
Weighted-average fair value of options granted | $ 7.21 | $ 6.70 | $ 5.92 |
Stock Compensation Summary of S
Stock Compensation Summary of Share-based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding, beginning of period - shares | 21 | 20 | 25 |
Granted - shares | 3 | 6 | 6 |
Exercised - shares | (5) | (4) | (10) |
Forfeitures and expirations - shares | 0 | (1) | (1) |
Outstanding, end of period - shares | 19 | 21 | 20 |
Exerciseable, end of period - shares | 10 | 10 | 9 |
Outstanding, beginning of period - weighted-average exercise price | $ 56 | $ 54 | $ 50 |
Granted - weighted-average exercise price | 64 | 60 | 60 |
Exercised - weighted-average exercise price | 53 | 50 | 48 |
Forfeitures and expirations - weighted-average exercise price | 60 | 58 | 55 |
Outstanding, end of period - weighted-average exercise price | 58 | 56 | 54 |
Exercisable, end of period - weighted-average exercise price | $ 55 | $ 53 | $ 50 |
Outstanding, end of period - weighted-average remaining contractual term (years) | 6 years 11 months 6 days | ||
Excerciseable, end of period - weighted-average remaining contractual term (years) | 5 years 10 months 12 days | ||
Oustanding, end of period - aggregate intrinsic value | $ 264 | ||
Exerciseable, end of period - aggregate intrinsic value | 180 | ||
Total intrinsic value of options exercised | $ 65 | $ 56 | $ 139 |
Stock Compensation Maximum Futu
Stock Compensation Maximum Future Value of Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Dec. 28, 2013 | Jan. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | 0.00% | |||
Granted - shares | 202,000 | 185,000 | |||
Non-vested, beginning of year - weighted-average grant date fair value | $ 54 | $ 54 | |||
2012 Performance share award settlement in terms of original target | 35.00% | ||||
2012 Performance share award settlement in dollars | $ 3 | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | 200.00% | |||
Performance Award Condition Time Period | 3 years | 3 years | |||
2015 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 25 | ||||
2014 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 29 | ||||
2013 Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 27 | ||||
Performance Shares Target Grant 2015 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 58 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Performance Target Time Period | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Performance Share Target Grant | 172,000 |
Stock Compensation Summary of r
Stock Compensation Summary of restricted stock activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - shares | 202,000 | 185,000 | |
Non-vested, beginning of year - weighted-average grant-date fair value | $ 54 | $ 54 | |
Non-vested, end of year - weighted-average grant-date fair value | $ 54 | $ 54 | |
Restricted Stock and Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested, beginning of year - shares | 346,000 | 318,000 | 316,000 |
Granted - shares | 617,000 | 114,000 | 139,000 |
Vested - shares | (113,000) | (65,000) | (117,000) |
Forfeited - shares | (44,000) | (21,000) | (20,000) |
Non-vested, end of year - shares | 806,000 | 346,000 | 318,000 |
Non-vested, beginning of year - weighted-average grant-date fair value | $ 54 | $ 52 | $ 50 |
Granted - weighted average grant-date fair value | 59 | 56 | 52 |
Vested - weighted-average grant-date fair value | 50 | 51 | 51 |
Forfeited - weighted-average grant-date fair value | 58 | 53 | 47 |
Non-vested, end of year - weighted-average grant-date fair value | $ 57 | $ 54 | $ 52 |
Vesting period, years | 3 years | ||
Total fair value of restricted stock and restricted stock units vested during period | $ 7 | $ 4 | $ 6 |
Pension Benefits Change in Proj
Pension Benefits Change in Projected Benefit Obligations, Plan Assets, and Funding Status (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | $ 67 | $ 59 |
Net Amount Recognized | 67 | 59 |
Amounts Recognized in Balance Sheet | ||
Other Assets | 231 | 250 |
Other Current Liabilities | (17) | (15) |
Other liabilities | (946) | (777) |
Net Amount Recognized | (732) | (542) |
Defined Benefit Plan, Accumulated Benefit Obligation | 4,900 | 5,100 |
Pension [Member] | ||
Change in Benefit Obligation [Roll Forward] | ||
Beginning of Year | 5,570 | 4,888 |
Service Cost | 114 | 106 |
Interest Cost | 206 | 225 |
Plan Participants' Contributions | 2 | 2 |
Plan Amendments | 25 | 4 |
Actuarial Gain (Loss) | (191) | 754 |
Benefits Paid | (262) | (281) |
Curtailments | (2) | 0 |
Other | 4 | 3 |
Foreign Currency Adjustments | (150) | (131) |
End of Year | 5,316 | 5,570 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value, Beginning of Year | 5,028 | 5,014 |
Actual Return on Plan Assets | (102) | 390 |
Employer Contributions | 19 | 37 |
Plan Participants' Contributions | 2 | 2 |
Benefits Paid, Plan Assets | (235) | (261) |
Other | 4 | 3 |
Foreign Currency Adjustments | (132) | (157) |
Fair Value, End of Year | 4,584 | 5,028 |
Funded Status | $ (732) | $ (542) |
Pension Benefits Accumulated Be
Pension Benefits Accumulated Benefit Obligations (Details) - Pension [Member] - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 3,769 | $ 3,958 |
Accumulated benefit obligation | 3,574 | 3,683 |
Fair value of plan assets | $ 2,835 | $ 3,179 |
Pension Benefits Components of
Pension Benefits Components of Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Pension | |||
401(k) expense | $ 40 | $ 43 | $ 41 |
Pension [Member] | |||
Pension | |||
Service Cost | 114 | 106 | |
Interest Cost | 206 | 225 | |
Pension Expense | 276 | 752 | (792) |
Pension [Member] | Defined Benefit Plans [Member] | |||
Pension | |||
Service Cost | 114 | 106 | 133 |
Interest Cost | 206 | 225 | 203 |
Expected Return on Plan Assets | (399) | (415) | (359) |
Amortization of Unrecognized Prior Service Cost (Credit) | 13 | 14 | 16 |
Recognized net (gain) loss | 303 | 782 | (854) |
Curtailment and special termination benefits - net loss | (1) | 4 | 34 |
Pension Expense | 236 | 716 | (827) |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 13 | ||
Pension [Member] | Defined Contribution Plans [Member] | |||
Pension | |||
Pension Expense | $ 40 | $ 36 | $ 35 |
Pension Benefits Assumptions (D
Pension Benefits Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Liabilities, Current | $ 1,362 | $ 1,401 | |
Other Liabilities | $ 77 | $ 82 | |
Percentage of consolidated pension and postretirement benefit plan assets | 68.00% | ||
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term rate of compensation increase | 3.90% | 4.00% | 4.10% |
Discount rate, benefit obligation | 4.10% | 3.90% | 4.70% |
Discount Rate | 3.90% | 4.70% | 4.10% |
Long-term rate of compensation increase | 4.00% | 4.10% | 4.10% |
Long-term rate of return on plan assets | 8.30% | 8.50% | 8.50% |
Long-term inflation assumption | 2.50% | ||
Active management premium | 1.00% | ||
Expected rate of return on foreign plan assets | 8.50% | ||
Expected rates of return | 57th percentile |
Pension Benefits Plan Assets (D
Pension Benefits Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution by Company | $ 15 | ||
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 4,584 | $ 5,028 | $ 5,014 |
Percentage of consolidated plan assets represented by investment in Company comon stock | 1.40% | 1.30% | |
Expected contribution by Company | $ 28 | ||
Pension [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 800 | $ 764 | |
Pension [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,508 | 4,126 | |
Pension [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 276 | 138 | 134 |
Pension [Member] | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 91 | 91 | |
Pension [Member] | Cash and Cash Equivalents | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 83 | 47 | |
Pension [Member] | Cash and Cash Equivalents | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8 | 44 | |
Pension [Member] | Cash and Cash Equivalents | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Domestic Corporate Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 608 | 556 | |
Pension [Member] | Domestic Corporate Common Stock | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 608 | 556 | |
Pension [Member] | Domestic Corporate Common Stock | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Domestic Corporate Common Stock | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Foreign Corporate Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 109 | 161 | |
Pension [Member] | Foreign Corporate Common Stock | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 109 | 161 | |
Pension [Member] | Foreign Corporate Common Stock | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Foreign Corporate Common Stock | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Mutual Fund International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 441 | 393 | |
Pension [Member] | Mutual Fund International Equity | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Mutual Fund International Equity | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 441 | 393 | |
Pension [Member] | Mutual Fund International Equity | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Mutual Funds International Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension [Member] | Mutual Funds International Debt [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension [Member] | Mutual Funds International Debt [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension [Member] | Mutual Funds International Debt [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension [Member] | Collective Trusts Domestic Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 411 | 594 | |
Pension [Member] | Collective Trusts Domestic Equity | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts Domestic Equity | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 411 | 594 | |
Pension [Member] | Collective Trusts Domestic Equity | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,130 | 1,261 | |
Pension [Member] | Collective Trusts International Equity | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts International Equity | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,130 | 1,261 | |
Pension [Member] | Collective Trusts International Equity | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts Eurozone Sovereign Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10 | 11 | |
Pension [Member] | Collective Trusts Eurozone Sovereign Debt | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts Eurozone Sovereign Debt | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10 | 11 | |
Pension [Member] | Collective Trusts Eurozone Sovereign Debt | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts Other International Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 368 | 534 | |
Pension [Member] | Collective Trusts Other International Debt | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Collective Trusts Other International Debt | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 368 | 534 | |
Pension [Member] | Collective Trusts Other International Debt | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Limited Partnership | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 455 | 475 | |
Pension [Member] | Limited Partnership | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Limited Partnership | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 455 | 475 | |
Pension [Member] | Limited Partnership | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Bonds, corporate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 419 | 519 | |
Pension [Member] | Bonds, corporate | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Bonds, corporate | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 419 | 519 | |
Pension [Member] | Bonds, corporate | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | 1 |
Pension [Member] | Bonds, government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 157 | 172 | |
Pension [Member] | Bonds, government | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Bonds, government | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 157 | 172 | |
Pension [Member] | Bonds, government | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Bonds, other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 49 | 59 | |
Pension [Member] | Bonds, other | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Bonds, other | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 49 | 59 | |
Pension [Member] | Bonds, other | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Buy-in Annuity Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 135 | ||
Pension [Member] | Buy-in Annuity Contract [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension [Member] | Buy-in Annuity Contract [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Pension [Member] | Buy-in Annuity Contract [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 135 | 0 | 0 |
Pension [Member] | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 135 | 130 | |
Pension [Member] | Real estate | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Real estate | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Pension [Member] | Real estate | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 135 | 130 | 125 |
Pension [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 66 | 72 | |
Weighted-average target asset allocation | 13.00% | ||
Pension [Member] | Other [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 0 | 0 | |
Pension [Member] | Other [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 60 | 64 | |
Pension [Member] | Other [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 6 | $ 8 | $ 8 |
Pension [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average target asset allocation | 21.00% | ||
Pension [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average target asset allocation | 66.00% | ||
US High Quality Bonds [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Bond Yield Percentile | 40.00% | ||
US High Quality Bonds [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Bond Yield Percentile | 90.00% | ||
Canada And Europe [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Bond Yield Percentile | 10.00% | ||
Canada And Europe [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate Bond Yield Percentile | 90.00% |
Pension Benefits Level 3 Gains
Pension Benefits Level 3 Gains and Losses (Details) - Pension [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | $ 5,028 | $ 5,014 |
Fair Value, End of Year | 4,584 | 5,028 |
Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 138 | 134 |
Sales | (8) | (2) |
Defined Benefit Plan, Purchases, Sales, and Settlements | 138 | |
Realized gain and unrealized gain (loss) | 15 | 23 |
Currency Translation | (7) | (17) |
Fair Value, End of Year | 276 | 138 |
Bonds, corporate | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 519 | |
Fair Value, End of Year | 419 | 519 |
Bonds, corporate | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 0 | 1 |
Sales | 0 | (1) |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | |
Realized gain and unrealized gain (loss) | 0 | 0 |
Currency Translation | 0 | 0 |
Fair Value, End of Year | 0 | 0 |
Real estate | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 130 | |
Fair Value, End of Year | 135 | 130 |
Real estate | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 130 | 125 |
Sales | (5) | (1) |
Defined Benefit Plan, Purchases, Sales, and Settlements | 0 | |
Realized gain and unrealized gain (loss) | 16 | 23 |
Currency Translation | (6) | (17) |
Fair Value, End of Year | 135 | 130 |
Buy-in Annuity Contract [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, End of Year | 135 | |
Buy-in Annuity Contract [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 0 | 0 |
Sales | 0 | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | 135 | |
Realized gain and unrealized gain (loss) | 0 | 0 |
Currency Translation | 0 | 0 |
Fair Value, End of Year | 135 | 0 |
Other Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 72 | |
Fair Value, End of Year | 66 | 72 |
Other Investments [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 8 | 8 |
Sales | (3) | 0 |
Defined Benefit Plan, Purchases, Sales, and Settlements | 3 | |
Realized gain and unrealized gain (loss) | (1) | 0 |
Currency Translation | (1) | 0 |
Fair Value, End of Year | $ 6 | $ 8 |
Pension Benefits Benefit Paymen
Pension Benefits Benefit Payments (Details) - Pension [Member] $ in Millions | Jan. 02, 2016USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2016 | $ 416 |
Benefit payments in 2017 | 238 |
Benefit payments in 2018 | 243 |
Benefit payments in 2019 | 254 |
Benefit payments in 2020 | 265 |
Benefit payments in 2021 through 2025 | $ 1,501 |
Nonpension Postretirement and91
Nonpension Postretirement and Postemployment Benefits Change in Projected Benefit Obligations, Plan Assets, and Funded Status, Postretirement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2016 | Jan. 03, 2015 | |
Amounts Recognized in Balance Sheet | ||
Other Assets | $ 231 | $ 250 |
Other Current Liabilities | (17) | (15) |
Other Liabilities | (77) | (82) |
Net Amount Recognized | (732) | (542) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | 67 | 59 |
Net Amount Recognized | 67 | 59 |
Nonpension Postretirement [Member] | ||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Beginning of Year | 1,288 | 1,202 |
Service Cost | 29 | 28 |
Interest Cost | 48 | 55 |
Actuarial Gain (Loss) | (53) | 116 |
Benefits Paid | (57) | (62) |
Curtailments | 0 | (28) |
Acquisitions | (84) | (18) |
Foreign Currency Adjustments | (8) | (5) |
End of Year | 1,163 | 1,288 |
Change in plan assets | ||
Fair Value, Beginning of Year | 1,204 | 1,178 |
Actual Return on Plan Assets | (65) | 81 |
Employer Contributions | 14 | 16 |
Benefits Paid, Plan Assets | (69) | (71) |
Fair Value, End of Year | 1,084 | 1,204 |
Funded Status | (79) | (84) |
Amounts Recognized in Balance Sheet | ||
Other Assets | 0 | 0 |
Other Current Liabilities | (2) | (2) |
Other Liabilities | (77) | (82) |
Net Amount Recognized | (79) | (84) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | (95) | (16) |
Net Amount Recognized | $ (95) | $ (16) |
Nonpension Postretirement and92
Nonpension Postretirement and Postemployment Benefits Components of Postretirement Expense (Details) - Nonpension Postretirement [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 29 | $ 28 | |
Interest Cost | 48 | 55 | |
Postretirement Benefit Expense | 98 | 101 | $ (238) |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 9 | ||
Defined Benefit Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 29 | 28 | 34 |
Interest Cost | 48 | 55 | 50 |
Expected Return on Plan Assets | (100) | (98) | (86) |
Amortization of Unrecognized Prior Service Cost (Credit) | (5) | (3) | (3) |
Recognized net (gain) loss | 112 | 133 | (247) |
Curtailment and special termination benefits - net loss | 0 | (28) | 1 |
Postretirement Benefit Expense | 84 | 87 | (251) |
Defined Contribution Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ 14 | $ 14 | $ 13 |
Nonpension Postretirement and93
Nonpension Postretirement and Postemployment Benefits Assumptions (Details) - Nonpension Postretirement [Member] | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligation | 4.20% | 4.00% | 4.80% |
Discount rate, annual net periodic cost | 4.00% | 4.80% | 3.90% |
Long-term rate of return on plan assets | 8.50% | 8.50% | 8.50% |
Nonpension Postretirement and94
Nonpension Postretirement and Postemployment Benefits Health Care Cost Trend Rates (Details) - Nonpension Postretirement [Member] $ in Millions | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Assumed healthcare cost trend rate | 5.00% |
Assumed health care cost trend rate by 2018 | 4.50% |
Effiect on total service and interest cost components, one percentage point increase | $ 4 |
Effect on postretirement benefit obligation, one percentage point increase | 89 |
Effect on total service and interest cost components, one percentage point decrease | (3) |
Effect on postretirement benefit obligation, one percentage point decrease | $ (72) |
Nonpension Postretirement and95
Nonpension Postretirement and Postemployment Benefits Plan Assets (Details) - Nonpension Postretirement [Member] - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,084 | $ 1,204 | $ 1,178 |
Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 209 | 237 | |
Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 875 | 967 | |
Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 22 | 33 | |
Cash and Cash Equivalents | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 9 | 6 | |
Cash and Cash Equivalents | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 13 | 27 | |
Cash and Cash Equivalents | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Domestic Corporate Common Stock | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 195 | 214 | |
Domestic Corporate Common Stock | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 195 | 214 | |
Domestic Corporate Common Stock | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Domestic Corporate Common Stock | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Foreign Corporate Common Stock | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 17 | |
Foreign Corporate Common Stock | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 17 | |
Foreign Corporate Common Stock | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Foreign Corporate Common Stock | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds Domestic Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 52 | 153 | |
Mutual Funds Domestic Equity | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds Domestic Equity | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 52 | 153 | |
Mutual Funds Domestic Equity | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Mutual Fund International Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 111 | 120 | |
Mutual Fund International Equity | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Mutual Fund International Equity | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 111 | 120 | |
Mutual Fund International Equity | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds Domestic Debt | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 54 | 63 | |
Mutual Funds Domestic Debt | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Mutual Funds Domestic Debt | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 54 | 63 | |
Mutual Funds Domestic Debt | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Collective Trusts Domestic Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 150 | 53 | |
Collective Trusts Domestic Equity | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Collective Trusts Domestic Equity | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 150 | 53 | |
Collective Trusts Domestic Equity | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Collective Trusts International Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 148 | 164 | |
Collective Trusts International Equity | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Collective Trusts International Equity | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 148 | 164 | |
Collective Trusts International Equity | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Limited Partnership | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 166 | 174 | |
Limited Partnership | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Limited Partnership | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 166 | 174 | |
Limited Partnership | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Bonds, corporate | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 120 | 141 | |
Bonds, corporate | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Bonds, corporate | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 120 | 141 | |
Bonds, corporate | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Bonds, government | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 48 | 54 | |
Bonds, government | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Bonds, government | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 48 | 54 | |
Bonds, government | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Bonds, other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 17 | |
Bonds, other | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Bonds, other | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 17 | |
Bonds, other | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | |
Other [Member] | Level 1 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Other [Member] | Level 2 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | |
Other [Member] | Level 3 [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Nonpension Postretirement and96
Nonpension Postretirement and Postemployment Benefits VEBA Trusts (Details) $ in Millions | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected contribution by Company | $ 15 |
Nonpension Postretirement [Member] | Debt Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 25.00% |
Nonpension Postretirement [Member] | Equity Securities [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 75.00% |
Nonpension Postretirement and97
Nonpension Postretirement and Postemployment Benefits Change in Projected Benefit Obligations, Plan Assets, and Funded Status, Postemployment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Other Assets | $ 231 | $ 250 | |
Amounts Recognized in Balance Sheet | |||
Other Current Liabilities | (17) | (15) | |
Other Liabilities | (77) | (82) | |
Net Amount Recognized | (732) | (542) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | 67 | 59 | |
Net Amount Recognized | 67 | 59 | |
Nonpension Postretirement [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 1,084 | 1,204 | $ 1,178 |
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Beginning of Year | 1,288 | 1,202 | |
Service Cost | 29 | 28 | |
Interest Cost | 48 | 55 | |
Actuarial Gain (Loss) | (53) | 116 | |
Benefits Paid | (57) | (62) | |
Foreign Currency Adjustments | (8) | (5) | |
End of Year | 1,163 | 1,288 | 1,202 |
Funded Status | (79) | (84) | |
Other Assets | 0 | 0 | |
Amounts Recognized in Balance Sheet | |||
Other Current Liabilities | (2) | (2) | |
Other Liabilities | (77) | (82) | |
Net Amount Recognized | (79) | (84) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | (95) | (16) | |
Net Amount Recognized | (95) | (16) | |
Curtailments | 0 | (28) | |
Acquisitions | (84) | (18) | |
Actual Return on Plan Assets | (65) | 81 | |
Employer Contributions | 14 | 16 | |
Benefits Paid, Plan Assets | (69) | (71) | |
Postemployment [Member] | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Beginning of Year | 104 | 87 | |
Service Cost | 7 | 7 | 7 |
Interest Cost | 4 | 4 | 3 |
Actuarial Gain (Loss) | 0 | 8 | |
Benefits Paid | (6) | (9) | |
Plan Amendments | 0 | 8 | |
Foreign Currency Adjustments | (1) | (1) | |
End of Year | 108 | 104 | $ 87 |
Funded Status | (108) | (104) | |
Amounts Recognized in Balance Sheet | |||
Other Current Liabilities | (8) | (8) | |
Other Liabilities | (100) | (96) | |
Net Amount Recognized | (108) | (104) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | 6 | 7 | |
Net Experience Loss | 27 | 30 | |
Net Amount Recognized | $ 33 | $ 37 |
Nonpension Postretirement and98
Nonpension Postretirement and Postemployment Benefits Components of Postretirement Expense, Postemployment (Details) - Postemployment [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 7 | $ 7 | $ 7 |
Interest Cost | 4 | 4 | 3 |
Amortization of Unrecognized Prior Service Cost (Credit) | 1 | 0 | 0 |
Recognized net (gain) loss | 3 | 3 | 5 |
Postemployment Benefits, Period Expense | 15 | 14 | $ 15 |
Estimated net prior service cost for defined benefit pension plans, expected to be amortized | $ 3 | ||
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | $ 1 |
Nonpension Postretirement and99
Nonpension Postretirement and Postemployment Benefits Benefit Payments (Details) $ in Millions | Jan. 02, 2016USD ($) |
Nonpension Postretirement [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2016 | $ 71 |
Benefit payments in 2017 | 72 |
Benefit payments in 2018 | 73 |
Benefit payments in 2019 | 73 |
Benefit payments in 2020 | 74 |
Benefit payments in 2021 through 2025 | 390 |
Postemployment [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2016 | 9 |
Benefit payments in 2017 | 8 |
Benefit payments in 2018 | 8 |
Benefit payments in 2019 | 8 |
Benefit payments in 2020 | 8 |
Benefit payments in 2021 through 2025 | $ 42 |
Multipemployer Pension and P100
Multipemployer Pension and Postretirement Plans Narrative (Details) | 12 Months Ended |
Jan. 02, 2016 | |
Minimum | |
Multiemployer Plans [Line Items] | |
Red Zone Multiemployer Plans Funded Percentage | 0.00% |
Yellow Zone Multiemployer Plans Funded Percentage | 65.00% |
Green Zone Multiemployer Plan Funded Percentage | 80.00% |
Maximum | |
Multiemployer Plans [Line Items] | |
Red Zone Multiemployer Plans Funded Percentage | 65.00% |
Yellow Zone Multiemployer Plans Funded Percentage | 80.00% |
Green Zone Multiemployer Plan Funded Percentage | 100.00% |
Multipemployer Pension and P101
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Trusts Funds (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | ||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plan, Period Contributions | $ 14.7 | $ 14.7 | $ 14.5 | |
Bakery And Confectionary Union And Industry International Pension Fund [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 70.00% | |||
Entity Tax Identification Number | [1] | 526,118,572 | ||
Multiemployer Plan Number | [1] | 1 | ||
Multiemployer Plans, Certified Zone Status | [1] | Red | Red | |
Multiemployer Plans, Certified Zone Status, Date | [1] | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | [1] | Jul. 31, 2016 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | [1] | Oct. 31, 2017 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [1] | Apr. 30, 2017 | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | [1] | Implemented | ||
Multiemployer Plan, Period Contributions | [1] | $ 5.1 | $ 5.4 | 5.2 |
Multiemployer Plans, Surcharge | [1] | Yes | ||
Central States Southeast And Southwest Areas Pension Fund [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 40.00% | |||
Entity Tax Identification Number | [2] | 366,044,243 | ||
Multiemployer Plan Number | [2] | 1 | ||
Multiemployer Plans, Certified Zone Status | [2] | Red | Red | |
Multiemployer Plans, Certified Zone Status, Date | [2] | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | [2] | Apr. 30, 2016 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | [2] | Jul. 31, 2019 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [2] | Sep. 30, 2018 | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | [3] | Implemented | ||
Multiemployer Plan, Period Contributions | [3] | $ 4.8 | $ 4.5 | 4.5 |
Multiemployer Plans, Surcharge | [3] | Yes | ||
Western Conference Of Teamsters Pension Trust [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Employer's Participants | 40.00% | |||
Entity Tax Identification Number | [3] | 916,145,047 | ||
Multiemployer Plan Number | [3] | 1 | ||
Multiemployer Plans, Certified Zone Status | [3] | Green | Green | |
Multiemployer Plans, Certified Zone Status, Date | [3] | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, First | [3] | Jan. 31, 2018 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date, Last | [3] | Oct. 31, 2018 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | [3] | Mar. 24, 2018 | ||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | [3] | NA | ||
Multiemployer Plan, Period Contributions | [3] | $ 1.6 | $ 1.6 | 1.5 |
Multiemployer Plans, Surcharge | [3] | No | ||
Hagerstown Motor Carriers And Teamsters Pension Fund [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 526,045,424 | |||
Multiemployer Plan Number | 1 | |||
Multiemployer Plans, Certified Zone Status | Red | Red | ||
Multiemployer Plans, Certified Zone Status, Date | Jun. 30, 2016 | Jun. 30, 2015 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Sep. 28, 2019 | |||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | Implemented | |||
Multiemployer Plan, Period Contributions | $ 0.5 | $ 0.5 | 0.5 | |
Multiemployer Plans, Surcharge | No | |||
Local 734 Pension Plan [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 516,040,136 | |||
Multiemployer Plan Number | 1 | |||
Multiemployer Plans, Certified Zone Status | Red | Red | ||
Multiemployer Plans, Certified Zone Status, Date | Apr. 30, 2016 | Apr. 30, 2015 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Apr. 1, 2019 | |||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | Implemented | |||
Multiemployer Plan, Period Contributions | $ 0.3 | $ 0.3 | 0.3 | |
Multiemployer Plans, Surcharge | Yes | |||
Twin Cities Bakery Drivers Pension Plan [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 416,172,265 | |||
Multiemployer Plan Number | 1 | |||
Multiemployer Plans, Certified Zone Status | Green | Green | ||
Multiemployer Plans, Certified Zone Status, Date | Dec. 31, 2015 | Dec. 31, 2014 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | May 31, 2018 | |||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | NA | |||
Multiemployer Plan, Period Contributions | $ 0.2 | $ 0.2 | 0.2 | |
Multiemployer Plans, Surcharge | Yes | |||
Upstate New York Bakery Drivers And Industry Pension Fund [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Entity Tax Identification Number | 150,612,437 | |||
Multiemployer Plan Number | 1 | |||
Multiemployer Plans, Certified Zone Status | Green | Green | ||
Multiemployer Plans, Certified Zone Status, Date | Jun. 30, 2015 | Jun. 30, 2014 | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | Sep. 10, 2017 | |||
Multiemployer Plans, Funding Improvement Plan and Rehabilitation Plan | NA | |||
Multiemployer Plan, Period Contributions | $ 0.2 | $ 0.2 | 0.1 | |
Multiemployer Plans, Surcharge | No | |||
Other Plans [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plan, Period Contributions | $ 2 | $ 2 | $ 2.2 | |
[1] | The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 70 percent of the Company’s participants in this fund are covered by a single CBA that expires on 4/30/2017. | |||
[2] | The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 40 percent of the Company’s participants in this fund are covered by a single CBA that expires on 9/30/2018. | |||
[3] | The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 40 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/24/2018. |
Multipemployer Pension and P102
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Trusts Funds Contributions (Details) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Hagerstown Motor Carriers And Teamsters Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Period contributions above 5% | true | ||
Plan Year End Date For Contributions To Plan Exceeding Five Percent Of Total Contributions | 6/20/2014 | 6/30/2013 | 6/30/2012 |
Local 734 Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Period contributions above 5% | true | ||
Plan Year End Date For Contributions To Plan Exceeding Five Percent Of Total Contributions | 4/30/2015 | 4/30/2014 | 4/30/2013 |
Twin Cities Bakery Drivers Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Period contributions above 5% | true | ||
Plan Year End Date For Contributions To Plan Exceeding Five Percent Of Total Contributions | 12/31/2014 | 12/31/2013 | 12/31/2012 |
Upstate New York Bakery Drivers And Industry Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
Period contributions above 5% | true | ||
Plan Year End Date For Contributions To Plan Exceeding Five Percent Of Total Contributions | 6/30/2015 | 6/30/2014 | 6/30/2013 |
Multipemployer Pension and P103
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Curtailments, Settlements and Termination Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 14.7 | $ 14.7 | $ 14.5 |
Multiemployer Plans, Pension [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer Plans, Withdrawal Obligation | (2) | 0 | 0 |
Multiemployer Other Postretirement Benefit Plans Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 14 | $ 14 | $ 13 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate | 20.60% | 22.60% | 30.40% |
Non-cash gain from deconsolidation | $ 49 | $ 0 | $ 0 |
Amount Recognized in Income Due to Inflationary Accounting | 112 | 15 | |
Accumulated foreign earnings considered permanently reinvested | 2,000 | 2,200 | 2,200 |
Deferred taxes related to foreign earnings not considered indefinitely reinvested | 0 | 1 | 2 |
Unremitted foreign earnings | 23 | 24 | |
Tax benefits of carryforwards | 55 | 54 | |
Valuation allowance | 45 | 39 | |
Income taxes paid | $ 337 | 414 | 426 |
U.S percentage of tax provision | 50.00% | ||
Unrecognized tax benefits classified as current liabilities | $ 13 | ||
Projected additions to unrecognized tax benefits related to ongoing intercompany pricing activity | 8 | ||
Unrecognized tax benefits that would affect the Company's effective tax rate in future periods | 48 | ||
Income Tax Examination, Interest Expense | 3 | 3 | 4 |
IncomeTaxSettelmentPenaltiesAndInterestExpense | 6 | ||
Accrued tax-related interest and penalties | 17 | $ 20 | $ 17 |
U.S. Snacks | Selling, General and Administrative Expenses | Variable Interest Entity, Primary Beneficiary [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Non-cash gain from deconsolidation | $ 67 |
Income Taxes Income before inco
Income Taxes Income before income taxes and the provision for U.S. federal, state and foreign taxes on earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, United States | $ 551 | $ 502 | $ 2,102 |
Income before income taxes, Foreign | 222 | 323 | 504 |
Income before income taxes | 773 | 825 | 2,606 |
Income taxes, currently payable, Federal | 212 | 301 | 302 |
Income taxes, currently payable, State | 42 | 36 | 68 |
Income taxes, currently payable, Foreign | 74 | 103 | 105 |
Income taxes, currently payable | 328 | 440 | 475 |
Income taxes, deferred, Federal | (136) | (186) | 331 |
Income taxes, deferred, State | (14) | (14) | (2) |
Income taxes, deferred, Foreign | (19) | (54) | (12) |
Income taxes, deferred | (169) | (254) | 317 |
Total income taxes | $ 159 | $ 186 | $ 792 |
Income Taxes Difference Between
Income Taxes Difference Between U.S. Federal Statutory Tax Rate and the Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
Foreign rates varying from 35% | (9.60%) | (7.90%) | (3.50%) |
State income taxes, net of federal benefit | 2.30% | 1.70% | 1.70% |
Cost (benefit) of remitted and unremitted foreign earnings | (4.40%) | (0.10%) | (0.40%) |
U.S. deduction for qualified production activities | (2.30%) | (2.80%) | (0.90%) |
Statutory rate changes, deferred tax impact | (0.80%) | (0.40%) | (0.50%) |
VIE deconsolidation | (2.30%) | 0.00% | 0.00% |
Venezuela remeasurement | 5.00% | 0.00% | 0.00% |
Other | (2.30%) | (2.90%) | (1.00%) |
Effective Income Tax Rate Reconciliation, Percent | 20.60% | 22.60% | 30.40% |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 13 | $ 10 | ||
Deferred Tax Liabilities Us State Income Taxes | 43 | 49 | ||
Deferred Tax Assets Advertising And Promotion Related | 15 | 21 | ||
Deferred Tax Assets Wages And Payroll Taxes | 21 | 36 | ||
Deferred Tax Assets, Inventory | 31 | 0 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Benefits | 366 | 305 | ||
Tax benefits of carryforwards | 55 | 54 | ||
Deferred Tax Assets, Hedging Transactions | 43 | 48 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | 345 | 352 | ||
Deferred Tax Liabilities, Intangible Assets | 576 | 555 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 35 | 35 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 42 | 38 | ||
Deferred taxes related to foreign earnings not considered indefinitely reinvested | 0 | 1 | $ 2 | |
Deferred Tax Assets, Other | 86 | 84 | ||
Deferred Tax Assets, Gross | 707 | 631 | ||
Deferred Tax Liabilities, Gross | 964 | 957 | ||
Deferred Tax Liabilities, Net | 964 | 957 | ||
Deferred Tax Assets, Valuation Allowance | (63) | (51) | $ (61) | $ (59) |
Deferred Tax Assets, Net of Valuation Allowance | 644 | 580 | ||
Deferred Tax Assets, Net | (320) | (377) | ||
Other Current Assets [Member] | ||||
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Net | 227 | 184 | ||
Other Current Liabilities [Member] | ||||
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Net | (9) | (10) | ||
Other Assets [Member] | ||||
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Net | 147 | 175 | ||
Other Liabilities [Member] | ||||
Deferred Income Tax [Line Items] | ||||
Deferred Tax Assets, Net | $ (685) | $ (726) |
Income Taxes Change in Valuatio
Income Taxes Change in Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
Balance at beginning of year | $ 51 | $ 61 | $ 59 | |
Additions charged to income tax expense | 23 | 9 | 17 | |
Reductions credited to income tax expense | (7) | (3) | (3) | |
Other | [1] | 0 | 0 | (10) |
Currency translation adjustments | (4) | (16) | (2) | |
Balance at end of year | $ 63 | $ 51 | $ 61 | |
[1] | Reduction due to the disposition of a business resulting in deferred tax asset and valuation allowance being eliminated. |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 78 | $ 79 | $ 80 |
Additions, current year | 8 | 7 | 9 |
Additions, prior year | 9 | 10 | 17 |
Reducitons, prior year | (12) | (12) | (13) |
Settlements | (10) | (2) | (14) |
Lapse in statute of limitations | 0 | (4) | 0 |
Balance at end of year | $ 73 | $ 78 | $ 79 |
Derivative Instruments and F110
Derivative Instruments and Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Derivative [Line Items] | ||
Long-term debt total, carrying value | $ 6,555 | $ 6,542 |
Fair value of derivative instruments with credit-risk related contingent features in a liability position | 14 | |
Additional collateral required to be posted if the credit-risk related contingent features were triggered | 14 | |
Margin deposits posted | $ 51 | |
Five largest customers percentage of consolidated trade receivables | 29.00% | |
Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Long-term debt total, carrying value | $ 1,200 | $ 600 |
Accounts Receivable [Member] | ||
Derivative [Line Items] | ||
Margin deposits posted | $ 0 |
Derivative Instruments and F111
Derivative Instruments and Fair Value Measurements Total Notional Amounts of the Company's Derivative Instruments (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Derivative [Line Items] | ||
Notional amount of derivatives | $ 1,680 | $ 4,214 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 1,210 | 764 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 0 | 2,958 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 470 | $ 492 |
Derivative Instruments and F112
Derivative Instruments and Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 | |
Derivative [Line Items] | |||
Fair Value Of Related Hedge Portion Of Long Term Debt | $ 2,500 | ||
Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Other current assets | $ 11 | 36 | |
Liabilities | (24) | (48) | |
Designated as Hedging Instrument [Member] | Level 1 [Member] | |||
Derivative [Line Items] | |||
Other current assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Designated as Hedging Instrument [Member] | Level 2 [Member] | |||
Derivative [Line Items] | |||
Other current assets | 11 | 36 | |
Liabilities | (24) | (48) | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 11 | 29 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (10) | (6) | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 0 | 0 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 1 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 11 | 29 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 2 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (10) | (6) | |
Designated as Hedging Instrument [Member] | Interest rate contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | [1] | 0 | 7 |
Designated as Hedging Instrument [Member] | Interest rate contracts | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (3) | |
Designated as Hedging Instrument [Member] | Interest rate contracts | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (16) | |
Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | [1] | 0 | 0 |
Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | [1] | 0 | 7 |
Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (3) | |
Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (16) | |
Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (14) | (12) | |
Designated as Hedging Instrument [Member] | Commodity contracts | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (11) | |
Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (14) | (12) | |
Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (11) | |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Other current assets | 22 | 7 | |
Liabilities | (39) | (40) | |
Not Designated as Hedging Instrument [Member] | Level 1 [Member] | |||
Derivative [Line Items] | |||
Other current assets | 4 | 7 | |
Liabilities | (33) | (40) | |
Not Designated as Hedging Instrument [Member] | Level 2 [Member] | |||
Derivative [Line Items] | |||
Other current assets | 18 | 0 | |
Liabilities | (6) | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 18 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (6) | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 1 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 18 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Level 2 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (6) | 0 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 4 | 7 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (33) | (36) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (4) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 4 | 7 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | (33) | (36) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | (4) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Other current assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Liabilities | $ 0 | $ 0 | |
[1] | The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $2.5 billion as of January 3, 2015. |
Derivative Instruments and F113
Derivative Instruments and Fair Value Measurements Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net amount of assets presented in the balance sheet | $ 33 | $ 43 |
Financial instruments, gross amount not offset in balance sheet | (12) | (29) |
Cash collateral posted, gross amount not offset in balance sheet | 0 | 0 |
Net amount, assets derivatives | 21 | 14 |
Net amounts of liabilities presented in balance sheet | (63) | (88) |
Financial instruments, gross amount not offset in balance sheet | 12 | 29 |
Cash collateral received, gross amount not offset in balance sheet | 51 | 50 |
Net amount, liabilities derivatives | $ 0 | $ (9) |
Derivative Instruments and F114
Derivative Instruments and Fair Value Measurements The Effect of Derivative Instruments on the Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 14 | ||
Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | [1] | 16 | $ 20 |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | 8 | (35) | |
Gain (Loss) Reclassified from AOCI into Income | 23 | 10 | |
Gain (Loss) Recognized in Income | [1] | (3) | (4) |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (44) | (81) | |
Foreign Exchange Contract [Member] | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 16 | 0 | |
Foreign Exchange Contract [Member] | Other Income (Expense), Net [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | [1] | (4) | 3 |
Foreign Exchange Contract [Member] | Other Income (Expense), Net [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 8 | 1 | |
Foreign Exchange Contracts, One [Member] | COGS [Member] | Other Income (Expense), Net [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | 26 | 34 | |
Gain (Loss) Reclassified from AOCI into Income | 40 | 5 | |
Gain (Loss) Recognized in Income | [1] | (3) | (4) |
Foreign Exchange Contracts, Two [Member] | SGA [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | (6) | 4 | |
Gain (Loss) Reclassified from AOCI into Income | (2) | 3 | |
Interest rate contracts | Interest Expense [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | [1] | 20 | 17 |
Interest rate contracts | Interest Expense [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | (9) | (69) | |
Gain (Loss) Reclassified from AOCI into Income | (3) | 9 | |
Interest rate contracts | Interest Expense [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 0 | (4) | |
Commodity contracts | COGS [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | (3) | (4) | |
Gain (Loss) Reclassified from AOCI into Income | (12) | (7) | |
Commodity contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (63) | (73) | |
Commodity contracts | SGA [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (5) | (5) | |
Foreign Currency Denominated Long Term Debt [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in AOCI | $ 70 | $ 86 | |
[1] | Includes the ineffective portion and amount excluded from effectiveness testing. |
Derivative Instruments and F115
Derivative Instruments and Fair Value Measurements Assets Measured at Fair Value (Details) - Project K - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-Lived Assets | $ 31 | $ 24 |
Long-lived assets, estimated fair value | 13 | $ 3 |
Venezuela | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-Lived Assets | 51 | |
Long-lived assets, estimated fair value | $ 2 |
Derivative Instruments and F116
Derivative Instruments and Fair Value Measurements Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 |
Fair Value Disclosures [Abstract] | ||
Current maturities of long-term debt, fair value | $ 1,266 | |
Current maturities of long-term debt, carrying value | 1,266 | $ 607 |
Long-term Debt, Fair Value | 5,635 | |
Long-term debt, carrying value | 5,289 | 5,935 |
Long term debt total, fair value | 6,901 | |
Long-term debt total, carrying value | $ 6,555 | $ 6,542 |
Venezuela (Details)
Venezuela (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 04, 2015USD ($) | Oct. 03, 2015 | Jan. 02, 2016USD ($)VEF / $ | Dec. 28, 2013USD ($) | Jan. 03, 2015USD ($) | Feb. 28, 2013 | Feb. 14, 2013VEF / $ | Feb. 12, 2013VEF / $ | |
Foreign Currency [Line Items] | ||||||||
Amount Recognized in Income Due to Inflationary Accounting | $ 112 | $ 15 | ||||||
Venezuela Remeasurement Charge, Pretax | $ 152 | |||||||
Net Monetary Asset Devaluation [Member] | ||||||||
Foreign Currency [Line Items] | ||||||||
Venezuela Remeasurement Charge, Pretax | 47 | |||||||
Inventory Valuation Reserve [Member] | ||||||||
Foreign Currency [Line Items] | ||||||||
Venezuela Remeasurement Charge, Pretax | 56 | |||||||
Asset impairment | ||||||||
Foreign Currency [Line Items] | ||||||||
Venezuela Remeasurement Charge, Pretax | $ 49 | |||||||
Venezuela | ||||||||
Foreign Currency [Line Items] | ||||||||
Percentage of raw materials | 2.00% | |||||||
Simadi [Member] | Venezuelan bolívar fuerte | ||||||||
Foreign Currency [Line Items] | ||||||||
Foreign Currency Exchange Rate, Remeasurement | 200 | |||||||
Sicad [Member] | Venezuelan bolívar fuerte | ||||||||
Foreign Currency [Line Items] | ||||||||
Foreign Currency Exchange Rate, Remeasurement | 13.5 | |||||||
Cencoex Formerly Known As Cadivi [Member] | ||||||||
Foreign Currency [Line Items] | ||||||||
Foreign Currency Exchange Rate Devaluation | 46.50% | |||||||
Asset, Reporting Currency Denominated, Value | $ 100 | |||||||
Foreign Currency Exchange Rate, Remeasurement | VEF / $ | 6.3 | 6.3 | 4.3 | |||||
Cencoex Formerly Known As Cadivi [Member] | Venezuelan bolívar fuerte | ||||||||
Foreign Currency [Line Items] | ||||||||
Foreign Currency Exchange Rate, Remeasurement | 6.3 | |||||||
Selling, General and Administrative Expenses | ||||||||
Foreign Currency [Line Items] | ||||||||
Venezuela Remeasurement Charge, Pretax | $ 3 | |||||||
COGS [Member] | ||||||||
Foreign Currency [Line Items] | ||||||||
Venezuela Remeasurement Charge, Pretax | 100 | |||||||
Other Income (Expense), Net [Member] | ||||||||
Foreign Currency [Line Items] | ||||||||
Venezuela Remeasurement Charge, Pretax | $ 49 | |||||||
Geographic Concentration Risk [Member] | Venezuela | Net Sales | ||||||||
Foreign Currency [Line Items] | ||||||||
Concentration Risk, Percentage | 2.00% |
Quarterly Financial Data Narrat
Quarterly Financial Data Narrative (Details) | Jan. 02, 2016$ / shares |
Quarterly Financial Information Disclosure [Abstract] | |
Market Value per share | $ 72.27 |
Number Of Shareholders | 35,704 |
Quarterly Financial Data Net sa
Quarterly Financial Data Net sales and gross profit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 3,142 | $ 3,329 | $ 3,498 | $ 3,556 | $ 3,514 | $ 3,639 | $ 3,685 | $ 3,742 | $ 13,525 | $ 14,580 | $ 14,792 |
Gross Profit | $ 962 | $ 1,233 | $ 1,241 | $ 1,245 | $ 856 | $ 1,292 | $ 1,411 | $ 1,504 | $ 4,681 | $ 5,063 |
Quarterly Financial Data Net in
Quarterly Financial Data Net income and earnings per share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net income (loss) attributable to Kellogg Company, Basic | $ (41) | $ 205 | $ 223 | $ 227 | $ (293) | $ 224 | $ 295 | $ 406 | $ 614 | $ 632 | $ 1,807 |
Basic | $ (0.12) | $ 0.58 | $ 0.63 | $ 0.64 | $ (0.82) | $ 0.63 | $ 0.82 | $ 1.13 | $ 1.74 | $ 1.76 | $ 4.98 |
Diluted | $ (0.12) | $ 0.58 | $ 0.63 | $ 0.64 | $ (0.82) | $ 0.62 | $ 0.82 | $ 1.12 | $ 1.72 | $ 1.75 | $ 4.94 |
Quarterly Financial Data Divide
Quarterly Financial Data Dividends and stock prices (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Dividends per share | $ 0.50 | $ 0.50 | $ 0.49 | $ 0.49 | $ 0.49 | $ 0.49 | $ 0.46 | $ 0.46 | $ 1.98 | $ 1.90 | $ 1.80 |
Market Price Of Common Stock High | 73.51 | 69.77 | 66.38 | 69.84 | 67.24 | 66.41 | 69.39 | 62.13 | 73.51 | 67.24 | |
Market Price Of Common Stock Low | $ 66.03 | $ 62.74 | $ 61.31 | $ 61.97 | $ 59.70 | $ 59.83 | $ 62.62 | $ 56.90 | $ 66.03 | $ 59.70 |
Quarterly Financial Data Asset
Quarterly Financial Data Asset impairment and MTM gains and losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Restructuring, Settlement and Impairment Provisions | $ 80 | $ 85 | $ 90 | $ 68 | $ 74 | $ 92 | $ 78 | $ 54 | $ 323 | $ 298 |
Gain Loss On Mark To Market Adjustments | 387 | 27 | (35) | 67 | 822 | 66 | 12 | (116) | 446 | 784 |
Pre Tax Charges Gains In Operating Profit | $ 467 | $ 112 | $ 55 | $ 135 | $ 896 | $ 158 | $ 90 | $ (62) | $ 769 | $ 1,082 |
Reportable Segments Narrative (
Reportable Segments Narrative (Details) | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | 9 | ||
Number of Remaining Reportable Segments Which are Based on Geographical Location | 3 | ||
Walmart Stores Inc [Member] | |||
Segment Reporting Information [Line Items] | |||
Largest customer, percentage of consolidated net sales | 21.00% | 21.00% | 21.00% |
Reportable Segments Reportable
Reportable Segments Reportable Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | $ 15,265 | $ 15,153 | $ 15,265 | $ 15,153 | $ 15,474 | |||||||
Net sales | 3,142 | $ 3,329 | $ 3,498 | $ 3,556 | 3,514 | $ 3,639 | $ 3,685 | $ 3,742 | 13,525 | 14,580 | 14,792 | |
Operating profit | 1,091 | 1,024 | 2,837 | |||||||||
Depreciation and amortization | [1] | 534 | 503 | 532 | ||||||||
Interest expense | 227 | 209 | 235 | |||||||||
Income taxes | 159 | 186 | 792 | |||||||||
Property, Plant and Equipment, Additions | 553 | 582 | 637 | |||||||||
U.S. Morning Foods | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,992 | 3,108 | 3,195 | |||||||||
Operating profit | 474 | 479 | 469 | |||||||||
Depreciation and amortization | [1] | 123 | 136 | 181 | ||||||||
U.S. Snacks | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 3,234 | 3,329 | 3,379 | |||||||||
Operating profit | 385 | 364 | 424 | |||||||||
Depreciation and amortization | [1] | 135 | 166 | 144 | ||||||||
U.S. Specialty | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,181 | 1,198 | 1,202 | |||||||||
Operating profit | 260 | 266 | 265 | |||||||||
Depreciation and amortization | [1] | 11 | 10 | 8 | ||||||||
North America Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,687 | 1,864 | 1,940 | |||||||||
Operating profit | 178 | 295 | 314 | |||||||||
Depreciation and amortization | [1] | 74 | 32 | 30 | ||||||||
Interest expense | 5 | 6 | 6 | |||||||||
North America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 10,363 | 10,489 | 10,363 | 10,489 | 10,643 | |||||||
Property, Plant and Equipment, Additions | 342 | 295 | 296 | |||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 3,742 | 2,893 | 3,742 | 2,893 | 3,007 | |||||||
Net sales | 2,497 | 2,869 | 2,843 | |||||||||
Operating profit | 247 | 232 | 249 | |||||||||
Depreciation and amortization | [1] | 120 | 92 | 84 | ||||||||
Interest expense | 5 | 5 | 6 | |||||||||
Income taxes | 10 | (3) | 4 | |||||||||
Property, Plant and Equipment, Additions | 110 | 129 | 182 | |||||||||
Latin America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 587 | 905 | 587 | 905 | 1,052 | |||||||
Net sales | 1,015 | 1,205 | 1,195 | |||||||||
Operating profit | 9 | 169 | 157 | |||||||||
Depreciation and amortization | [1] | 28 | 32 | 29 | ||||||||
Interest expense | 5 | 3 | 1 | |||||||||
Income taxes | 34 | 42 | 35 | |||||||||
Property, Plant and Equipment, Additions | 23 | 31 | 70 | |||||||||
Asia Pacific | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 1,106 | 1,111 | 1,106 | 1,111 | 1,049 | |||||||
Net sales | 919 | 1,007 | 1,038 | |||||||||
Operating profit | 54 | 53 | 67 | |||||||||
Depreciation and amortization | [1] | 29 | 31 | 40 | ||||||||
Interest expense | 2 | 1 | 3 | |||||||||
Income taxes | 0 | (1) | 6 | |||||||||
Property, Plant and Equipment, Additions | 76 | 120 | 85 | |||||||||
Total Reportable Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating profit | 1,607 | 1,858 | 1,945 | |||||||||
Depreciation and amortization | [1] | 520 | 499 | 516 | ||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 1,198 | 1,796 | 1,198 | 1,796 | 2,583 | |||||||
Operating profit | (516) | (834) | 892 | |||||||||
Depreciation and amortization | [1] | 14 | 4 | 16 | ||||||||
Interest expense | 210 | 194 | 219 | |||||||||
Property, Plant and Equipment, Additions | 2 | 7 | 4 | |||||||||
Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | $ (1,731) | $ (2,041) | (1,731) | (2,041) | (2,860) | |||||||
Corporate And North America [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income taxes | $ 115 | $ 148 | $ 747 | |||||||||
[1] | Includes asset impairment charges as discussed in Note 13. |
Reportable Segments Net sales t
Reportable Segments Net sales to external customers and long-lived assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 3,142 | $ 3,329 | $ 3,498 | $ 3,556 | $ 3,514 | $ 3,639 | $ 3,685 | $ 3,742 | $ 13,525 | $ 14,580 | $ 14,792 |
Property, net | 3,621 | 3,769 | 3,621 | 3,769 | 3,856 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 8,560 | 8,876 | 9,060 | ||||||||
Property, net | 2,220 | 2,283 | 2,220 | 2,283 | 2,343 | ||||||
All Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 4,965 | 5,704 | 5,732 | ||||||||
Property, net | $ 1,401 | $ 1,486 | $ 1,401 | $ 1,486 | $ 1,513 |
Reportable Segments Supplementa
Reportable Segments Supplemental product information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | $ 3,142 | $ 3,329 | $ 3,498 | $ 3,556 | $ 3,514 | $ 3,639 | $ 3,685 | $ 3,742 | $ 13,525 | $ 14,580 | $ 14,792 |
Cereal [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | 5,871 | 6,570 | 6,753 | ||||||||
Snacks [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | 6,698 | 7,002 | 7,011 | ||||||||
Frozen [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales Revenue, Goods, Net | $ 956 | $ 1,008 | $ 1,028 |
Supplemental Financial State127
Supplemental Financial Statement Data Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Supplemental Financial Statement Data [Abstract] | |||
Research and Development Expense | $ 193 | $ 199 | $ 199 |
Advertising Expense | $ 898 | $ 1,094 | $ 1,131 |
Supplemental Financial State128
Supplemental Financial Statement Data Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Supplemental Financial Statement Data [Abstract] | ||||
Accounts Receivable, Gross, Current | $ 1,169 | $ 1,101 | ||
Allowance for Doubtful Accounts Receivable, Current | (8) | (7) | $ (5) | $ (6) |
Income Taxes Receivable | 27 | 16 | ||
Other Receivables | 156 | 166 | ||
Accounts Receivable, Net, Current | 1,344 | 1,276 | ||
Inventory, Raw Materials and Supplies, Gross | 315 | 327 | ||
Inventory, Finished Goods and Work in Process, Net of Reserves | 935 | 952 | ||
Inventory, Net | 1,250 | 1,279 | ||
Deferred Tax Assets, Net of Valuation Allowance, Current | 227 | 184 | ||
Other Prepaid Expense, Current | 164 | 158 | ||
Other Assets, Current | 391 | 342 | ||
Land | 142 | 105 | ||
Buildings and Improvements, Gross | 2,076 | 2,154 | ||
Machinery and Equipment, Gross | 5,617 | 6,017 | ||
Capitalized Computer Software, Gross | 328 | 327 | ||
Construction in Progress, Gross | 694 | 692 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (5,236) | (5,526) | ||
Property, Plant and Equipment, Net | 3,621 | 3,769 | 3,856 | |
Other Finite And Indefinite Lived Intangible Assets | 2,315 | 2,338 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (47) | (43) | $ (34) | |
Intangible Assets, Net (Excluding Goodwill) | 2,268 | 2,295 | ||
Other Assets | 231 | 250 | ||
Other Assets, Noncurrent | 485 | 527 | ||
Assets, Noncurrent | 716 | 777 | ||
Accrued Income Taxes, Current | 42 | 39 | ||
Accrued Salaries, Current | 325 | 320 | ||
Accrued advertising and promotion | 447 | 446 | ||
Other Accrued Liabilities, Current | 548 | 596 | ||
Other Liabilities, Current | 1,362 | 1,401 | ||
Nonpension postretirement benefits | 77 | 82 | ||
Liabilities, Other than Long-term Debt, Noncurrent | 391 | 418 | ||
Other liabilities | $ 468 | $ 500 |
Supplemental Financial State129
Supplemental Financial Statement Data Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 | |
Supplemental Financial Statement Data [Abstract] | |||
Balance at beginning of year | $ 7 | $ 5 | $ 6 |
Additions charged to expense | 4 | 6 | 2 |
Doubtful accounts charged to reserve | (3) | (4) | (3) |
Balance at end of year | $ 8 | $ 7 | $ 5 |