Cover Page Document
Cover Page Document - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 29, 2022 | Jul. 02, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 1, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 1-4171 | ||
Entity Registrant Name | Kellogg Company | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 38-0710690 | ||
Entity Address, Address Line One | One Kellogg Square | ||
Entity Address, City or Town | Battle Creek | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49016-3599 | ||
City Area Code | 269 | ||
Local Phone Number | 961-2000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 17.9 | ||
Entity Common Stock, Shares Outstanding | 341,674,873 | ||
Documents Incorporated by Reference [Text Block] | Parts of the registrant’s Proxy Statement for the Annual Meeting of Shareowners to be held on April 29, 2022 are incorporated by reference into Part III of this Report. | ||
Closing price per share of common stock | $ 64.02 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Central Index Key | 0000055067 | ||
Current Fiscal Year End Date | --01-01 | ||
Common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.25 par value per share | ||
Trading Symbol | K | ||
Security Exchange Name | NYSE | ||
0.800% Senior Notes Due 2022 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.800% Senior Notes due 2022 | ||
Trading Symbol | K 22A | ||
Security Exchange Name | NYSE | ||
1.000% Senior Notes Due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.000% Senior Notes due 2024 | ||
Trading Symbol | K 24 | ||
Security Exchange Name | NYSE | ||
1.250% Senior Notes Due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2025 | ||
Trading Symbol | K 25 | ||
Security Exchange Name | NYSE | ||
0.500% Senior Notes Due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.500% Senior Notes due 2029 | ||
Trading Symbol | K 29 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Jan. 01, 2022 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Detroit, Michigan |
Auditor Firm ID | 238 |
Consolidated Statement of Incom
Consolidated Statement of Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 14,181 | $ 13,770 | $ 13,578 |
Cost of goods sold | 9,621 | 9,043 | 9,197 |
Selling, general and administrative expense | 2,808 | 2,966 | 2,980 |
Operating profit | 1,752 | 1,761 | 1,401 |
Interest expense | 223 | 281 | 284 |
Other income (expense), net | 437 | 121 | 188 |
Income before income taxes | 1,966 | 1,601 | 1,305 |
Income taxes | 474 | 323 | 321 |
Earnings (loss) from unconsolidated entities | 3 | (14) | (7) |
Net income | 1,495 | 1,264 | 977 |
Net income (loss) attributable to noncontrolling interests | 7 | 13 | 17 |
Net income attributable to Kellogg Company | $ 1,488 | $ 1,251 | $ 960 |
Basic | $ 4.36 | $ 3.65 | $ 2.81 |
Diluted | $ 4.33 | $ 3.63 | $ 2.80 |
Comprehensive Income Statement
Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,495 | $ 1,264 | $ 977 |
Other comprehensive income (loss), pre-tax: | |||
Foreign currency translation adjustment before tax | 14 | (405) | 100 |
Cash flow hedges, pre-tax: | |||
Unrealized gain (loss) on cash flow hedges, pre-tax | 38 | (9) | 5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 22 | 14 | 4 |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | |||
Net experience gain (loss) | (2) | (4) | (16) |
Prior service credit (cost) | (18) | (21) | 3 |
Postretirement and postemployment benefits reclassification to net income, pre-tax: | |||
Net experience (gain) loss, pre-tax | (2) | (3) | (5) |
Prior service (credit) cost, pre-tax | 0 | (1) | (1) |
Available-for-sale securities, pre-tax | |||
Unrealized gain (loss) on available-for-sale securities, pre-tax | (1) | 3 | 4 |
Reclassification to net income on available-for-sale securities, pre-tax | (2) | 0 | (4) |
Other comprehensive income (loss), pre-tax | 49 | (426) | 90 |
Other comprehensive income (loss), tax (expense) benefit: | |||
Foreign currency translation adjustments tax (expense) benefit | (57) | 84 | (19) |
Cash flow hedges, tax (expense) benefit: | |||
Unrealized gain (loss) on cash flow hedges | (10) | 2 | (1) |
Reclassification to net income, tax (expense) benefit | (6) | (4) | (1) |
Postretirement and postemployment benefit amounts arising during the period, tax (expense) benefit: | |||
Net experience gain (loss), tax (expense) benefit | 1 | 1 | 5 |
Prior service credit (cost), tax (expense) benefit | 4 | 6 | (1) |
Postretirement and postemployment benefits reclassification to net income, tax (expense) benefit: | |||
Net experience (gain) loss, tax (expense) benefit | 0 | 1 | 1 |
Prior service (credit) cost, tax (expense) benefit | 0 | 0 | 0 |
Available-for-sale securities, tax (expense) benefit | |||
Unrealized gain (loss) on available-for-sale securities, tax (expense) benefit | 0 | 0 | 0 |
Reclassification to net income on available-for-sale securities, tax (expense) benefit | 0 | 0 | 0 |
Other comprehensive income (loss), tax (expense) benefit | (68) | 90 | (16) |
Other comprehensive income (loss), after-tax | |||
Foreign currency translation adjustments after tax | (43) | (321) | 81 |
Cash flow hedges, after-tax: | |||
Unrealized gain (loss) on cash flow hedges, after-tax | 28 | (7) | 4 |
Reclassification to net income, after-tax | 16 | 10 | 3 |
Postretirement and postemployment benefit amounts arising during the period, after-tax | |||
Net experience gain (loss), after tax | (1) | (3) | (11) |
Prior service credit (cost), after-tax | (14) | (15) | 2 |
Postretirement and postemployment benefits reclassification to net income, after-tax | |||
Net experience loss, after-tax | (2) | (2) | (4) |
Prior service cost, after-tax | 0 | (1) | (1) |
Available-for-sale securities, after-tax | |||
Unrealized gain (loss) on available-for-sale securities, after-tax | (1) | 3 | 4 |
Reclassification to net income on available-for-sale securities, after-tax | (2) | 0 | (4) |
Other comprehensive income (loss) | (19) | (336) | 74 |
Comprehensive income | 1,476 | 928 | 1,051 |
Net income (loss) attributable to noncontrolling interests | 7 | 13 | 17 |
Other comprehensive income (loss) attributable to noncontrolling interests | (30) | (52) | 0 |
Comprehensive income attributable to Kellogg Company | $ 1,499 | $ 967 | $ 1,034 |
Consolidated Balance Sheet Stat
Consolidated Balance Sheet Statement - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 286 | $ 435 |
Accounts receivable, net | 1,489 | 1,537 |
Inventories | 1,398 | 1,284 |
Other current assets | 221 | 226 |
Total current assets | 3,394 | 3,482 |
Property, net | 3,827 | 3,713 |
Operating lease, right-of-use assets | 640 | 658 |
Goodwill | 5,771 | 5,799 |
Other intangibles, net | 2,409 | 2,491 |
Investment in unconsolidated entities | 424 | 391 |
Other assets | 1,713 | 1,462 |
Total assets | 18,178 | 17,996 |
Liabilities, Current [Abstract] | ||
Current maturities of long-term debt | 712 | 627 |
Notes payable | 137 | 102 |
Accounts payable | 2,573 | 2,471 |
Current operating lease liabilities | 116 | 117 |
Accrued advertising and promotion | 714 | 776 |
Accrued salaries and wages | 300 | 378 |
Other current liabilities | 763 | 767 |
Total current liabilities | 5,315 | 5,238 |
Long-term debt | 6,262 | 6,746 |
Operating lease liabilities | 502 | 520 |
Deferred income taxes | 722 | 562 |
Pension liability | 706 | 769 |
Other liabilities | 456 | 525 |
Commitments and contingencies | ||
Equity [Abstract] | ||
Common stock, $0.25 par value, 1,000,000,000 shares authorized Issued: 421,098,799 shares in 2021 and 420,962,092 shares in 2020 | 105 | 105 |
Capital in excess of par value | 1,023 | 972 |
Retained earnings | 9,028 | 8,326 |
Treasury stock, at cost 79,721,563 shares in 2021 and 77,071,554 shares in 2020 | (4,715) | (4,559) |
Accumulated other comprehensive income (loss) | (1,721) | (1,732) |
Total Kellogg Company equity | 3,720 | 3,112 |
Noncontrolling interests | 495 | 524 |
Total equity | 4,215 | 3,636 |
Total liabilities and equity | $ 18,178 | $ 17,996 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) Consolidated Balance Sheet - $ / shares | Jan. 01, 2022 | Jan. 02, 2021 |
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 | 421,098,799 | 420,962,092 |
Treasury Stock, Shares | 79,721,563 | 77,071,554 |
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 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 29, 2018 | $ 3,159 | $ 558 | ||||||
Balance, in shares at Dec. 29, 2018 | 421 | 77 | ||||||
Balance at Dec. 29, 2018 | $ 105 | $ 895 | $ 7,652 | $ (4,551) | $ (1,500) | $ 2,601 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | (220) | $ (220) | (220) | |||||
Common stock repurchases (in shares) | 4 | |||||||
Net income (loss) | 977 | 960 | 960 | 17 | ||||
Sale of subsidiary shares to noncontrolling interest | 1 | 0 | 1 | |||||
Dividends declared | (769) | (769) | (769) | |||||
Distributions to noncontrolling interest | (9) | 0 | (9) | |||||
Other comprehensive income (loss) | 74 | 74 | 74 | 0 | ||||
Reclassification of tax effects relating to U.S. Tax Reform | 0 | 22 | (22) | 0 | ||||
Stock compensation | 56 | 56 | 56 | |||||
Stock options exercised and other | 45 | (30) | (6) | $ 81 | 45 | |||
Stock options exercised and other (in shares) | 0 | (2) | ||||||
Balance, in shares at Dec. 28, 2019 | 421 | 79 | ||||||
Balance at Dec. 28, 2019 | $ 105 | 921 | 7,859 | $ (4,690) | (1,448) | 2,747 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 28, 2019 | 3,314 | 567 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,264 | 1,251 | 1,251 | 13 | ||||
Divestiture | (3) | 0 | (3) | |||||
Dividends declared | (782) | (782) | (782) | |||||
Distributions to noncontrolling interest | (1) | 0 | (1) | |||||
Other comprehensive income (loss) | (336) | (284) | (284) | (52) | ||||
Stock compensation | 76 | 76 | 76 | |||||
Stock options exercised and other | 104 | (25) | (2) | $ 131 | 104 | |||
Stock options exercised and other (in shares) | 0 | (2) | ||||||
Balance, in shares at Jan. 02, 2021 | 421 | 77 | ||||||
Balance at Jan. 02, 2021 | 3,112 | $ 105 | 972 | 8,326 | $ (4,559) | (1,732) | 3,112 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 02, 2021 | 3,636 | 524 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | (240) | $ (240) | (240) | |||||
Common stock repurchases (in shares) | 4 | |||||||
Net income (loss) | 1,495 | 1,488 | 1,488 | 7 | ||||
Acquisition of noncontrolling interest and other | 52 | 22 | 22 | 30 | ||||
Dividends declared | (788) | (788) | (788) | 0 | ||||
Distributions to noncontrolling interest | (36) | 0 | (36) | |||||
Other comprehensive income (loss) | (19) | 11 | 11 | (30) | ||||
Stock compensation | 68 | 68 | 68 | |||||
Stock options exercised and other | 47 | (39) | 2 | $ 84 | 47 | |||
Stock options exercised and other (in shares) | 0 | (1) | ||||||
Balance, in shares at Jan. 01, 2022 | 421 | 80 | ||||||
Balance at Jan. 01, 2022 | 3,720 | $ 105 | $ 1,023 | $ 9,028 | $ (4,715) | $ (1,721) | $ 3,720 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 01, 2022 | $ 4,215 | $ 495 |
Statement of Shareholders' Eq_2
Statement of Shareholders' Equity (Parenthetical) Statement of Shareholders' Equity - $ / shares | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 2.31 | $ 2.28 | $ 2.26 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Operating Activities | |||
Net income | $ 1,495 | $ 1,264 | $ 977 |
Adjustments to reconcile net income to operating cash flows | |||
Depreciation and amortization | 467 | 479 | 484 |
Postretirement benefit plan expense (benefit) | (392) | (77) | (89) |
Deferred income taxes | 125 | 69 | 47 |
Stock compensation | 68 | 76 | 56 |
Multi-employer pension plan exit liability | 0 | (5) | 132 |
Other | (44) | (16) | (36) |
Tax payment related to divestitures | 0 | 0 | (255) |
Postretirement benefit plan contributions | (20) | (32) | (28) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables | (9) | 75 | (145) |
Inventories | (135) | (54) | 2 |
Accounts payable | 194 | (9) | (9) |
All other current assets and liabilities | (48) | 216 | 40 |
Net cash provided by (used in) operating activities | 1,701 | 1,986 | 1,176 |
Investing activities | |||
Additions to properties | (553) | (505) | (586) |
Issuance of notes receivable | (28) | (19) | (30) |
Repayments from notes receivable | 28 | 14 | 5 |
Purchases of marketable securities | 0 | (250) | 0 |
Sales of marketable securities | 0 | 250 | 0 |
Divestiture, net of cash disposed | 0 | (7) | 1,332 |
Investments in unconsolidated entities | (10) | 0 | 0 |
Purchases of available-for-sale securities | (61) | (81) | (18) |
Sales of available-for-sale securities | 72 | 19 | 83 |
Other | 24 | (6) | (12) |
Net cash provided by (used in) investing activities | (528) | (585) | 774 |
Financing activities | |||
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days | (27) | (16) | (18) |
Issuances of notes payable, with maturities greater than 90 days | 73 | 44 | 62 |
Reductions of notes payable, with maturities greater than 90 days | (63) | (34) | (69) |
Issuances of long-term debt | 361 | 557 | 80 |
Reductions of long-term debt | (650) | (1,229) | (1,009) |
Debt redemption costs | 0 | (20) | (17) |
Net issuances of common stock | 63 | 112 | 64 |
Common stock repurchases | (240) | 0 | (220) |
Cash dividends | (788) | (782) | (769) |
Other | (35) | (20) | (9) |
Net cash provided by (used in) financing activities | (1,306) | (1,388) | (1,905) |
Effect of exchange rate changes on cash and cash equivalents | (16) | 25 | 31 |
Increase (decrease) in cash and cash equivalents | (149) | 38 | 76 |
Cash and cash equivalents at beginning of period | 435 | 397 | 321 |
Cash and cash equivalents at end of period | 286 | 435 | 397 |
Supplemental cash flow disclosures: | |||
Interest paid | 213 | 249 | 284 |
Income taxes paid | 365 | 281 | 537 |
Supplemental cash flow disclosures of non-cash investing activities: | |||
Additions to properties included in accounts payable | $ 162 | $ 189 | $ 128 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Jan. 01, 2022 | |
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 (Kellogg or the Company). The Company continually evaluates its involvement with variable interest entities (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 records investments in equity securities at fair value if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. The Company's investments in equity securities without a readily determinable fair value are recorded at original cost with adjustments for fair value only when observable price changes from orderly transactions for the investment are identified. Our investments in unconsolidated affiliates and equity securities without a readily determinable fair value are evaluated, at least annually, for indicators of an other-than-temporary impairment. 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 2021 and 2019 fiscal years each contained 52 weeks and ended on January 1, 2022, and December 28, 2019, respectively. The Company's 2020 fiscal year ended on January 2, 2021 and included a 53rd week. While quarters normally consist of 13-week periods, the fourth quarter of fiscal 2020 included a 14th 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 expected credit losses and prompt payment discounts. Trade receivables do not bear interest. The allowance for expected credit losses represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances, historical loss information, and an evaluation of customer accounts for potential future losses. Account balances are written off against the allowance when management determines the receivable is uncollectible. For the fiscal years ended 2021 and 2020 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 2 for information on sales of accounts receivable. Inventories Inventories are valued at the lower of cost or net realizable value. 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 15-30; office equipment 5; computer equipment and capitalized software 3-7; building components 20; building structures 10-50. 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. There were no material assets held for sale at the fiscal year-end 2021 or 2020. Goodwill and other intangible assets The Company reviews our operating segment and reporting unit structure annually or as significant changes in the organization occur and assesses goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our reporting units with goodwill. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In our quantitative testing, the Company compares a reporting unit’s estimated fair value with its carrying value with a reporting unit’s fair value being estimated using market multiples. This approach employs market multiples based on either sales or earnings before interest, taxes, depreciation and amortization 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 that incorporates assumptions surrounding planned growth rates, market-based discount rates and estimates of residual value. 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. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. If the carrying value of a reporting unit exceeds its fair value, the Company considers the reporting unit impaired and reduces its carrying value of goodwill such that the reporting unit’s new carrying value is the estimated fair value. Similarly, the Company assesses indefinite-life intangible assets impairment risk throughout the year by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these intangible assets. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In the quantitative testing, the Company compares an intangible asset’s estimated fair value with its carrying value with the intangible asset’s fair value being determined using estimates of future cash flows to be generated from that asset based on estimates of future sales, as well as assumptions surrounding earnings growth rates, royalty rates and discount 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. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. We amortize definite-life intangible assets over their estimated useful lives, which materially approximates the pattern of economic benefit and evaluate them for impairment as we do other long-lived assets. Accounts payable The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal is to capture overall supplier savings, in the form of payment terms or vendor funding, and the agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of January 1, 2022, $905 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $685 million of those payment obligations to participating financial institutions. As of January 2, 2021, $909 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $670 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 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. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements. The Company also recognizes revenue from the license of our trademarks granted to third parties who uses these trademarks on their merchandise and revenue from hauling services provided to third parties within certain markets. Revenue from these licenses and hauling services is not material to the Company. Contract balances recognized in the current period that are not the result of current period performance are not material to the Company. The Company also does not incur costs to obtain or fulfill contracts. The Company does not adjust the promised amount of consideration for the effects of significant financing components as the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Company accounts for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. The Company excludes from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales taxes. Performance obligations The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. The customer is invoiced with payment terms which are commensurate with the customer’s credit profile. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company assesses the goods and services promised in its customers’ purchase orders and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised, whether explicitly stated or implied based on customary business practices. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. Significant Judgments The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. Where applicable, future provisions are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company's promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in-store displays and events, feature price discounts, consumer coupons, contests and loyalty programs. The costs of these activities are generally recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. Differences between estimated expense and actual redemptions are normally immaterial in relation to net sales and recognized as a change in management estimate in a subsequent period. The liability associated with these promotions was recorded in other current liabilities. The Company classifies promotional payments to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. 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 also classifies consumer promotional expenditures in SGA expense. These promotional expenses are estimated using various techniques including historical cash expenditure and redemption experience and patterns. Differences between estimated expense and actual redemptions are normally immaterial and recognized as a change in management estimate in a subsequent period. The liability associated with these advertising and promotional activities is recorded in other current liabilities. The cost of promotional package inserts is recorded in cost of goods sold (COGS). 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 in SGA and COGS 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 prorate 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. 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. Management monitors the Company’s ability to utilize certain future tax deductions, operating losses and tax credit carryforwards, prior to expiration as well as the reinvestment assertion regarding our undistributed foreign earnings. 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. Derivative Instruments The fair value of derivative instruments is recorded in other current assets, other assets, other current liabilities or other liabilities. Derivative instruments are classified on the Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as other assets or other current liabilities on the Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Consolidated Balance Sheet. On the Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. 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) or interest expense. 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 hedged 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. 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. 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. 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, and long-term rate of return on plan assets and health care cost trend rate. Service cost is reported in COGS and SGA expense on the Consolidated Statement of Income. All other components of net periodic pension cost are included in OIE. 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. All other components of pension and postretirement benefit expense, including interest cost, expected return on assets, prior service cost, and experience gains and losses are considered unallocated corporate costs and are not included in the measure of reportable segment operating results. See Note 16 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. Leases The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. Finance lease obligations and activity are not material to the Consolidated Financial Statements. Lease obligations are primarily for real estate assets, with the remainder related to manufacturing and distribution related equipment, vehicles, information technology equipment, and rail cars. Leases with an initial term of 12 months or less are not recorded on the balance sheet. A portion of the Company's real estate leases include future variable rental payments that include inflationary adjustment factors. The future variability of these adjustments is unknown and therefore not included in the minimum lease payments. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases have remaining terms which range from less than 1 year to 20 years and the majority of leases provide the Company with the option to exercise one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed. The Company combines lease and non-lease components together in determining the minimum lease payments for the majority of leases. The Company has elected to not combine lease and non-lease components for assets controlled indirectly through third party service-related agreements that include significant production related costs. The Company has closely analyzed these agreements to ensure any embedded costs related to the securing of the leased asset is properly segregated and accounted for in measuring the lease assets and liabilities. The majority of the leases do not include a stated interest rate, and therefore the Company's periodic incremental borrowing rate is used to determine the present value of lease payments. This rate is calculated based on a collateralized rate for the specific currencies used in leasing activities and the borrowing ability of the applicable Company legal entity. New accounting standards |
Sale of Accounts Receivable
Sale of Accounts Receivable | 12 Months Ended |
Jan. 01, 2022 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | SALE OF ACCOUNTS RECEIVABLE The Company has a program in which a discrete group of customers are allowed to extend their payment terms in exchange for the elimination of early payment discounts (Extended Terms Program). The Company has two Receivable Sales Agreements (Monetization Programs) described below, which are intended to directly offset the impact the Extended Terms Program would have on the days-sales-outstanding (DSO) metric that is critical to the effective management of the Company's accounts receivable balance and overall working capital. The Monetization Programs are designed to effectively offset the impact on working capital of the Extended Terms Program. The Monetization Programs sell, on a revolving basis, certain trade accounts receivable invoices to third party financial institutions. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being de-recognized from the Consolidated Balance Sheet. The Monetization Programs provide for the continuing sale of certain receivables on a revolving basis until terminated by either party; however the maximum receivables that may be sold at any time is $1.1 billion. The Company has no retained interest in the receivables sold, however the Company does have collection and administrative responsibilities for the sold receivables. The Company has not recorded any servicing assets or liabilities as of January 1, 2022 and January 2, 2021 for these agreements as the fair value of these servicing arrangements as well as the fees earned were not material to the financial statements. Accounts receivable sold of $549 million and $783 million remained outstanding under these arrangements as of January 1, 2022 and January 2, 2021, respectively. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statement of Cash Flows. The recorded net loss on sale of receivables was $8 million, $14 million and $25 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. The recorded loss is included in OIE. Other programs Additionally, from time to time certain of the Company's foreign subsidiaries will transfer, without recourse, accounts receivable balances of certain customers to financial institutions. These transactions are accounted for as sales of the receivables resulting in the receivables being de-recognized from the Consolidated Balance Sheet. Accounts receivable sold of $66 million and $55 million remained outstanding under these programs as of January 1, 2022 and January 2, 2021, respectively. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statement of Cash Flows. The recorded net loss on the sale of these receivables is included in OIE and is not material. |
Divestitures and Investments in
Divestitures and Investments in Unconsolidated Entities | 12 Months Ended |
Jan. 01, 2022 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | DIVESTITURES AND INVESTMENTS IN UNCONSOLIDATED ENTITIES Divestiture On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses to Ferrero International S.A. (“Ferrero”) for approximately $1.3 billion in cash, subject to a working capital adjustment mechanism. Both the total assets and net assets of the businesses were approximately $1.3 billion, resulting in a net pre-tax gain of $38 million during the year ended December 28, 2019, recorded in OIE, after including related costs to sell of $14 million. Additionally, the Company recognized curtailment gains related to the divestiture totaling $17 million in our U.S. pension and nonpension postretirement plans. During 2020 the working capital adjustment was finalized, resulting in a reduction of the sale proceeds and recognition of a pre-tax expense in OIE of $4 million. The operating results for these businesses were primarily included in the North America reporting segment prior to the sale. Proceeds from the divestiture were used primarily to redeem $1.0 billion of debt during the third quarter of 2019. Additionally, the Company paid approximately $255 million of cash taxes on the divestiture in the fourth quarter of 2019. In connection with the sale, the Company entered into a transition services agreement (TSA) with Ferrero, under which the Company will provide certain services to Ferrero to help facilitate an orderly transition of the businesses following the sale. In return for these services, Ferrero is required to pay certain agreed upon fees that are designed to reimburse the Company for certain costs incurred by the Company in providing such services, plus specified immaterial margins. The TSA was completed in the first quarter of 2021. Investment in unconsolidated entities The Company holds a 50% ownership interest in Tolaram Africa Foods, PTE LTD (TAF), a holding company with a 49% interest in Dufil Prima Foods, Plc, a food manufacturer in West Africa. The investment in TAF is accounted for under the equity method of accounting and comprises substantially all of the investment in unconsolidated entities balance on the Consolidated Balance Sheet. TAF, and other entities affiliated with TAF, are suppliers to Multipro, a consolidated subsidiary in West Africa. The related trade payables are generally settled on a monthly basis. These suppliers' net sales, totaling $721 million and $586 million for the years ended January 1, 2022 and January 2, 2021, respectively, consist primarily of inventory purchases by Multipro. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets Changes in the carrying amount of goodwill, intangible assets subject to amortization, consisting primarily of customer relationships, and indefinite-lived intangible assets, consisting of brands and distribution agreements, are presented in the following tables: Carrying amount of goodwill (millions) North Europe Latin AMEA Consolidated December 28, 2019 $ 4,422 $ 347 $ 213 $ 879 $ 5,861 Currency translation adjustment 1 20 (33) (50) (62) January 2, 2021 $ 4,423 $ 367 $ 180 $ 829 $ 5,799 Acquisition — — — 33 33 Currency translation adjustment — (17) (9) (35) (61) January 1, 2022 $ 4,423 $ 350 $ 171 $ 827 $ 5,771 Intangible assets 2021 2020 (millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangibles subject to amortization (a) $ 521 $ (143) $ 378 $ 544 $ (121) $ 423 Intangibles not subject to amortization $ 2,031 $ — $ 2,031 $ 2,068 $ — $ 2,068 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $26 million per year through 2026. The change in intangible asset values presented in the table above include the impact of foreign currency translation adjustments. Annual impairment testing At January 1, 2022, goodwill and other intangible assets amounted to $8.2 billion, consisting primarily of goodwill and brands. Within this total, approximately $2.0 billion of non-goodwill intangible assets were classified as indefinite-lived, including $1.7 billion related to trademarks, comprised principally of Pringles and cracker-related trademarks. The majority of all goodwill and other intangible assets are recorded in our North America reporting unit. The Company currently believes the fair value of goodwill and other intangible assets exceeds their carrying value and that those intangibles so classified will contribute indefinitely to cash flows. The Company's impairment testing performed through the fourth quarter of 2021 consisted of qualitative testing for all reporting unit goodwill and all indefinite-lived intangible assets, except for one brand, for which quantitative testing was performed. No heightened risk of impairment of individual intangible assets or reporting units was identified. The Company has $184 million at January 1, 2022 related to one brand in the North America operating segment that primarily relates to snack category products. In performing the quantitative test of this brand, fair value was determined using a relief from royalty valuation method that includes estimates, and significant assumptions, of future cash flows to be generated from that asset based on estimates of future sales, royalty rate and discount rate consistent with rates used by market participants. The Company determined the fair value of this brand exceeds its carrying value and no heightened risk of impairment exists for the asset. In the fourth quarter of 2020 management finalized a decision to reorganize part of its North America operating segment, including the RX reporting unit, effective at the beginning of fiscal 2021. The reorganization further integrated the RX business with the rest of the North American business and changed internal reporting provided to the segment manager. As a result of these changes, the Company re-evaluated its North American reporting units and determined that effective at the beginning of fiscal 2021, the RX reporting unit was combined with the North America reporting unit. The Company evaluated the related impacted reporting units for impairment on a before and after basis and concluded that the fair values of each reporting unit exceeded their carrying values. |
Restructuring and Cost Reductio
Restructuring and Cost Reduction Activities | 12 Months Ended |
Jan. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | RESTRUCTURING PROGRAMS The Company views its restructuring programs as part of its 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 3 to 5-year period subsequent to completion. Completion (or as each major stage is completed in the case of multi-year programs), is when the project begins to deliver cash savings and/or reduced depreciation. During 2021, the Company announced a reconfiguration of the North America reportable segment supply chain network, designed to drive increased productivity. The project is expected to be substantially completed by early 2024, with related productivity improvements commencing in 2023. The overall project is expected to result in cumulative pretax charges of approximately $45 million, which include employee-related costs of $4 million, other cash costs of $21 million and non-cash costs, primarily consisting of accelerated depreciation and asset write-off's, of $20 million. Charges incurred related to this restructuring program were approximately $5 million during 2021. These charges primarily related to severance costs, and were recorded in COGS. During 2019, the Company announced a reorganization plan for its European reportable segment designed to simplify the organization, increase organizational efficiency, and enhance key processes. The project was substantially completed as of the end of fiscal year 2020. Total charges and cash costs were in line with expectations. The Company recorded total net charges of $(1) million in 2020, with $7 million recorded in SGA expense and ($8) million recorded in OIE. The Company recorded total net charges of $38 million in 2019, with $43 million recorded in SGA expense and ($5) million recorded in OIE. The project resulted in cumulative pretax net charges of approximately $37 million, including certain non-cash credits. Total cash costs were approximately $50 million. The total charges include severance and other termination benefits and charges related to relocation, pension curtailment gains, third party legal and consulting fees, and contract termination costs. Also during 2019, the Company announced a reorganization plan which primarily impacted the North America reportable segment, designed to simplify the organization that supports the remaining North America reportable segment after the divestiture and related transition. The project was substantially completed as of the end of fiscal year 2020. Total charges and cash costs were in line with expectations. The Company recorded total charges of $2 million and $21 million related to this initiative during 2020 and 2019, respectively. These charges were recorded in SGA expense. The project has resulted in cumulative pretax charges of approximately $23 million. Total charges include severance and other termination benefits and charges related to third party consulting fees. In addition to the projects discussed above, during 2021 and 2020 the Company incurred restructuring costs in each of its reportable segments related to various reorganization and simplification initiatives and supply chain optimization projects. The Company recorded total charges of $22 million related to these initiatives during 2021, including $13 million in COGS and $9 million in SGA expense. The Company recorded total charges of $28 million related to these initiatives during 2020, including $6 million in COGS and $22 million in SGA expense. These costs primarily relate to severance and other termination benefits. Project K As of the end of 2019, the Company completed implementation of all Project K initiatives. Total project charges, after-tax cash costs and annual savings delivered by Project K were in line with expectations. The total program resulted in pre-tax charges, of approximately $1.6 billion, with after-tax cash costs, including incremental capital expenditures, of approximately $1.2 billion. Total project charges consist of asset-related costs of approximately $500 million which consists primarily of asset impairments, accelerated depreciation and other exit-related costs; employee-related costs of approximately $400 million which includes severance, pension and other termination benefits; and other costs of approximately $700 million which consists primarily of charges related to the design and implementation of global business capabilities and a more efficient go-to-market model. Total pre-tax charges related to Project K impacted reportable segments as follows: North America (approximately 65%), Europe (approximately 21%), Latin America (approximately 4%), AMEA (approximately 6%), and Corporate (approximately 4%). The Company recognized charges of $1,574 million attributed to the Project K, with the charges comprised of $6 million recorded as a reduction of revenue, $928 million recorded in COGS, $807 million recorded in SGA expense and $(167) million recorded in OIE. Total programs The tables below provide the details for the charges incurred during 2021, 2020 and 2019 and program costs to date for all programs currently active as of January 1, 2022. Program costs to date (millions) 2021 2020 2019 January 1, 2022 Employee related costs $ 10 $ 29 $ 49 $ 23 Pension curtailment (gain) loss, net — (8) (5) — Asset related costs 10 2 21 12 Other costs 7 6 48 1 Total $ 27 $ 29 $ 113 $ 36 Program costs to date (millions) 2021 2020 2019 January 1, 2022 North America $ 19 $ 8 $ 50 $ 17 Europe (1) 3 47 5 Latin America 4 5 15 9 AMEA — 12 3 — Corporate 5 1 (2) 5 Total $ 27 $ 29 $ 113 $ 36 During 2021, the Company recorded total charges of $27 million across all restructuring programs. The charges were comprised of $18 million recorded in COGS and $9 million recorded in SGA expense. During 2020, the Company recorded total charges of $29 million across all restructuring programs. The charges were comprised of $6 million recorded in COGS, $31 million recorded in SGA expense and $(8) million recorded in OIE. During 2019, the Company recorded total charges of $113 million across all restructuring programs. The charges were comprised of $35 million expense being recorded in COGS, a $83 million expense recorded in SGA expense, and $(5) million recorded in OIE. Employee related costs consisted of severance and pension charges. Pension curtailment (gain) loss consists of curtailment gains or losses that resulted from project initiatives. Asset related costs consist primarily of accelerated depreciation. Other costs incurred consist primarily of lease termination costs as well as third-party incremental costs related to the development and implementation of global business capabilities and a more efficient go-to-market model. At January 1, 2022 total project reserves were $23 million, related to severance payments and other costs of which a substantial portion will be paid in 2022. The following table provides details for exit cost reserves. (millions) Employee Curtailment Gain Loss, net Asset Related Other Total Liability as of December 28, 2019 $ 37 $ — $ — $ 1 $ 38 2020 restructuring charges 29 (8) 2 6 29 Cash payments (38) — — (7) (45) Non-cash charges and other — 8 (2) — 6 Liability as of January 2, 2021 $ 28 $ — $ — $ — $ 28 2021 restructuring charges 10 — 10 7 27 Cash payments (15) — (4) (7) (26) Non-cash charges and other — — (6) — (6) Liability as of January 1, 2022 $ 23 $ — $ — $ — $ 23 |
Equity
Equity | 12 Months Ended |
Jan. 01, 2022 | |
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, restricted stock units, and to a lesser extent, certain contingently issuable performance shares. The total number of anti-dilutive potential common shares excluded from the reconciliation for each period was (shares in millions): 2021-10.6; 2020-7.3; 2019-14.0. Stock transactions The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 9. In February 2020, the board of directors approved a new authorization to repurchase up to $1.5 billion of the Company's common stock through December 2022. During 2021, the Company repurchased 4 million shares of common stock for a total of $240 million. During 2020, the Company didn't repurchase any shares of common stock. During 2019, the Company repurchased 4 million shares of common stock for a total of $220 million. Comprehensive income Comprehensive income includes net income and all other changes in equity during a period except those resulting from investments by or distributions to shareholders. Other comprehensive income consists of foreign currency translation adjustments, fair value adjustments associated with cash flow hedges, adjustments for net experience gains (losses) and prior service credit (costs) related to employee benefit plans, and adjustments for unrealized (gains) losses on available-for-sale securities, net of related tax effects. Reclassifications from Accumulated Other Comprehensive Income (AOCI) for the year ended January 1, 2022, January 2, 2021, and December 28, 2019, consisted of the following: Details about AOCI Amount Line item impacted (millions) 2021 2020 2019 (Gains) and losses on cash flow hedges: Interest rate contracts $ 22 $ 14 $ 4 Interest expense $ 22 $ 14 $ 4 Total before tax (6) (4) (1) Tax expense (benefit) $ 16 $ 10 $ 3 Net of tax Amortization of postretirement and postemployment benefits: Net experience (gains) losses $ (2) $ (3) $ (5) OIE Prior service (credit) cost — (1) (1) OIE $ (2) $ (4) $ (6) Total before tax — 1 1 Tax expense (benefit) $ (2) $ (3) $ (5) Net of tax (Gains) losses on available-for-sale securities Corporate bonds $ (2) $ — $ (4) OIE $ (2) $ — $ (4) Total before tax — — — Tax expense (benefit) $ (2) $ — $ (4) Net of tax Total reclassifications $ 12 $ 7 $ (6) Net of tax Accumulated other comprehensive income (loss) as of January 1, 2022 and January 2, 2021 consisted of the following: (millions) January 1, 2022 January 2, 2021 Foreign currency translation adjustments $ (1,681) $ (1,668) Cash flow hedges — unrealized net gain (loss) (13) (57) Postretirement and postemployment benefits: Net experience gain (loss) (1) 2 Prior service credit (cost) (26) (12) Available-for-sale securities unrealized net gain (loss) — 3 Total accumulated other comprehensive income (loss) $ (1,721) $ (1,732) |
Leases and Other Commitments
Leases and Other Commitments | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Leases and other commitments | LEASES AND OTHER COMMITMENTS The Company recorded operating lease costs of $139 million, $135 million and $133 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. Lease related costs associated with variable rent, short-term leases, and sale-leaseback arrangements, as well as sublease income, are each immaterial. (millions) Year ended January 1, 2022 Year ended January 2, 2021 Year ended December 28, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 138 $ 141 $ 134 Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 60 $ 144 $ 164 Modified leases $ 53 $ 84 $ 44 Weighted-average remaining lease term - operating leases 8 years 8 years Weighted-average discount rate - operating leases 2.7% 2.6% At January 1, 2022, future maturities of operating leases were as follows: (millions) Operating 2022 $ 127 2023 112 2024 96 2025 87 2026 66 2027 and beyond 210 Total minimum payments $ 698 Less interest (80) Present value of lease liabilities $ 618 Operating lease payments presented in the table above exclude $52 million of minimum lease payments for real-estate leases signed but not yet commenced as of January 1, 2022. The leases are expected to commence in 2022. At January 1, 2022, future minimum annual lease commitments under non-cancelable finance leases were immaterial. 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 1, 2022, the Company had not recorded any liability related to these indemnifications. |
Debt
Debt | 12 Months Ended |
Jan. 01, 2022 | |
Debt [Abstract] | |
Long-term Debt [Text Block] | DEBT The following table presents the components of notes payable at year end January 1, 2022 and January 2, 2021: (millions) 2021 2020 Principal Effective Principal Effective U.S. commercial paper $ — — % $ 25 0.20 % Bank borrowings 137 77 Total $ 137 $ 102 The following table presents the components of subordinated long-term debt at year end January 1, 2022 and January 2, 2021: (millions) 2021 2020 4.50% $650 million U.S. Dollar Notes due 2046 $ 638 $ 638 7.45% $625 million U.S. Dollar Debentures due 2031 622 621 2.10% $500 million U.S. Dollar Notes due 2030 496 496 0.50% €300 million Euro Notes due 2029 338 — 4.30% $600 million U.S. Dollar Notes due 2028 592 596 3.40% $600 million U.S. Dollar Notes due 2027 596 596 3.25% $750 million U.S. Dollar Notes due 2026 744 742 1.25% €600 million Euro Notes due 2025 693 748 1.00% €600 million Euro Notes due 2024 695 756 2.65% $600 million U.S. Dollar Notes due 2023 545 542 2.75% $400 million U.S. Dollar Notes due 2023 207 204 0.80% €600 million Euro Notes due 2022 682 731 1.75% €500 million Euro Notes due 2021 — 610 Other 126 93 6,974 7,373 Less current maturities (712) (627) Balance at year end 6,262 6,746 In 2021, the Company issued €300 million of eight-year 0.50% Euro Notes due 2029, resulting in net proceeds of €298 million after discount and underwriting commissions. The 2029 Euro Notes were issued as a sustainability bond, and thus an amount equal to the net proceeds will be used to finance or refinance, in whole or in part, one or more eligible environmental or social projects described in the Company's Sustainability Bond Framework. The Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions, as well as a change of control provision. Additionally, the Company repaid the €500 million, seven-year 1.75% Euro Notes due 2021, upon maturity. In December of 2020, the Company redeemed $198 million of its 3.25% U.S. Dollar Notes due May 2021, and $358 million of its 3.125% U.S. Dollar Notes due 2022. In connection with the debt redemption, the Company incurred $20 million of interest expense, primarily consisting of premium on the tender offer, acceleration of unamortized debt discount on the redeemed debt, fees related to the tender offer, and also included accelerated losses on pre-issuance interest rate hedges. 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. There are no significant restrictions on the payment of dividends by the Company. The Company was in compliance with all these covenants as of January 1, 2022. 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 were no commercial paper notes outstanding under this program as of January 1, 2022 and January 2, 2021. At January 1, 2022, the Company had $3.1 billion of short-term lines of credit and letters of credit, of which $3.0 billion were unused and available for borrowing primarily on an unsecured basis. These lines were comprised principally of the December 2021 unsecured $1.5 billion Five-Year Credit Agreement, which expires in December 2026, and an unsecured $1.0 billion 364-Day Credit Agreement. The Five-Year Credit Agreement allows the Company to borrow, on a revolving credit basis, up to $1.5 billion, which includes the ability to obtain European swingline loans in an aggregate principal amount up to the equivalent of $300 million. In December 2021, the Company terminated the original Five-Year Credit Agreement, which was originally set to expire in January of 2023, and entered into a new Five-Year Credit Agreement, which expires in December 2026. In December 2021, the Company entered into an unsecured 364-Day Credit Agreement to borrow, on a revolving credit basis, up to $1.0 billion at any time outstanding, and terminated the $1.0 billion 364-day facility that was originally set to expire in January 2022. The Five-Year and 364 Day Credit Agreements which had no outstanding borrowings as January 1, 2022, contain customary covenants and warranties, including specified restrictions on indebtedness, liens and a specified interest expense coverage ratio. If an event of default occurs, then, to the extent permitted, the administrative agents may terminate the commitments under the credit facilities, accelerate any outstanding loans under the agreements, 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 financial covenants contained in these agreements at January 1, 2022 and January 2, 2021. Scheduled principal repayments on long-term debt are (in millions): 2022–$712; 2023–$793; 2024–$702; 2025–$691; 2026–$759; 2027 and beyond–$3,341. Financial institutions have issued standby letters of credit conditionally guaranteeing obligations on behalf of the Company totaling $137 million, including $45 million secured and $92 million unsecured, as of January 1, 2022. These obligations are related primarily to insurance programs. There were no amounts drawn down on the letters of credit as of January 1, 2022. The Company has issued guarantees for a certain portion of debt of unconsolidated affiliates. These arrangements include cross guarantees back from the other shareholder in proportion to their ownership of the unconsolidated affiliates. These guarantees are not material to the Company. Interest expense capitalized as part of the construction cost of fixed assets was immaterial for all periods presented. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [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 executive performance shares. 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 2017 Long-Term Incentive Plan (2017 Plan), approved by shareholders in 2017, 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 2017 Plan, which replaced the 2013 Long-Term Incentive Plan (2013 Plan), authorizes the issuance of a total of (a) 16 million shares; plus (b) the total number of shares remaining available for future grants under the 2013 Plan. The total number of shares remaining available for issuance under the 2017 Plan will be reduced by two shares for each share issued pursuant to an award under the 2017 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. At January 1, 2022, there were 14 million remaining authorized, but unissued, shares under the 2017 Plan. In April 2020, the Amended and Restated Kellogg Company 2002 Employee Stock Purchase Plan was approved by shareholders, effective July 1, 2020. The plan is a tax-qualified employee stock purchase plan made available to substantially all U.S. employees, which allows participants to acquire Kellogg stock at a discounted price. The purpose of the plan is to encourage employees at all levels to purchase stock and become shareholders. Compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows: (millions) 2021 2020 2019 Pre-tax compensation expense $ 75 $ 81 $ 61 Related income tax benefit $ 20 $ 21 $ 16 As of January 1, 2022, total stock-based compensation cost related to non-vested awards not yet recognized was $96 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 windfall (shortfall) realized upon exercise or vesting of stock-based awards generally represent the difference between the grant date fair value of an award and the taxable compensation of an award. Cash used by the Company to settle equity instruments granted under stock-based awards was not material. (millions) 2021 2020 2019 Total cash received from option exercises and similar instruments $ 63 $ 112 $ 64 Tax windfall (shortfall) classified as cash flow from operating activities $ (3) $ 2 $ (2) 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 6 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 2017 and 2013 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 2021 2020 2019 Weighted-average expected volatility 20.00 % 18.00 % 18.00 % Weighted-average expected term (years) 6.7 6.7 6.6 Weighted-average risk-free interest rate 0.96 % 1.35 % 2.59 % Dividend yield 3.90 % 3.40 % 3.90 % Weighted-average fair value of options granted $ 6.39 $ 7.34 $ 6.78 A summary of option activity for the year ended January 1, 2022 is presented in the following table: Employee and Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 14 $ 65 Granted 3 58 Exercised (1) 56 Forfeitures and expirations (1) 66 Outstanding, end of year 15 $ 64 5.7 $ 44 Exercisable, end of year 10 $ 66 4.4 $ 22 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2020 2019 Outstanding, beginning of year 14 14 Granted 3 3 Exercised (2) (1) Forfeitures and expirations (1) (2) Outstanding, end of year 14 14 Exercisable, end of year 10 10 Weighted-average exercise price: Outstanding, beginning of year $ 65 $ 66 Granted 65 57 Exercised 59 56 Forfeitures and expirations 68 67 Outstanding, end of year $ 65 $ 65 Exercisable, end of year $ 66 $ 65 The total intrinsic value of options exercised during the periods presented was (in millions): 2021–$6; 2020–$17; 2019–$7. Other stock-based awards During the periods presented, other stock-based awards consisted principally of executive performance shares and restricted stock units granted under the 2017 and 2013 Plans. In the first quarter of 2021, the Company granted performance shares to a limited number of senior level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting, as well as dividend equivalent shares. 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 net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2021 target grant currently corresponds to approximately 399,000 shares, with a grant-date fair value of $58 per share. In 2020, the Company granted performance shares to a limited number of senior level employees, which entitle these employees to receive a specified number of shares of the Company's common stock upon vesting, as well as dividend equivalent shares. 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 net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2020 target grant currently corresponds to approximately 308,000 shares, with a grant-date fair value of $66 per share. In 2019, 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 net sales growth and total shareholder return (TSR) of the Company's common stock relative to a select group of peer companies. Dividend equivalents accrue and vest in accordance with the underlying award. The 2019 target grant currently corresponds to approximately 204,000 shares, with a grant-date fair value of $73 per share. A Monte Carlo valuation model was used to determine the fair value of awards with a TSR performance metric. 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 the performance metric. Compensation cost related to performance metric is revised for changes in the expected outcome. Based on the market price of the Company’s common stock at year-end 2021, the maximum future value that could be awarded on the vesting date was (in millions): 2021 award–$51; 2020 award– $39; and 2019 award–$26. The 2018 performance share award, payable in stock, was settled at 100% of target in February 2021 for a total dollar equivalent of $8 million. The Company also grants restricted stock units to eligible employees under the 2017 Plan, typically with three year cliff vesting earning dividend equivalent units for awards granted beginning in 2019. Dividend equivalents accrue and vest in accordance with the underlying award. 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 unit activity for the year ended January 1, 2022, is presented in the following table: Employee restricted stock units Shares (thousands) Weighted-average grant-date fair value Non-vested, beginning of year 1,736 $ 61 Granted 727 58 Vested (489) 63 Forfeited (188) 60 Non-vested, end of year 1,786 $ 60 Additionally, restricted stock unit activity for 2020 and 2019 is presented in the following table: Employee restricted stock units 2020 2019 Shares (in thousands): Non-vested, beginning of year 1,901 1,708 Granted 596 888 Vested (504) (469) Forfeited (257) (226) Non-vested, end of year 1,736 1,901 Weighted-average exercise price: Non-vested, beginning of year $ 61 $ 65 Granted 65 55 Vested 65 68 Forfeited 58 62 Non-vested, end of year $ 61 $ 61 The total fair value of restricted stock units vesting in the periods presented was (in millions): 2021–$29; 2020–$34; 2019–$27. |
Pension Benefits
Pension Benefits | 12 Months Ended |
Jan. 01, 2022 | |
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 12 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. The Company uses 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. In recent years, the Company has taken actions to reduce global pension benefit obligations and moderate the impact of market-related volatility. Those actions include the following: – In December 2020, the Company purchased a group annuity contract to cover pension benefit obligations of certain participants of the United Kingdom defined benefit pension plan for $268 million. This transaction represents an annuity buy-in, under which the Company retains both the fair value of the annuity contract (within plan assets) and the pension benefit obligations related to these participants. The fair value of the annuity buy-in contract at year-end is based on the calculated pension benefit obligations covered. – In October 2020, the Company settled pension benefit obligations associated with approximately 8,000 retired participants within our U.S. defined benefit pension plan to reduce pension benefit obligations and administrative expenses. A group annuity contract was purchased on behalf of these participants with a third-party insurance provider, resulting in a reduction of the Company's pension benefit obligations and plan assets of approximately $453 million. – In June of 2020, the Company recognized a curtailment gain of $7 million, as certain U.S. pension plan benefits were frozen for a portion of the participant population. – In September 2019, the Company provided a voluntary one-time lump-sum cash settlement offer to certain eligible terminated vested participants in our U.S. pension plans in order to reduce pension benefit obligations and administrative costs. In December 2019, approximately $174 million was distributed from pension plan assets in connection with this offer. – In conjunction with the completion of the sale of selected cookies, fruit and fruit-flavored snacks, pie crusts, and ice cream cones businesses on July 28, 2019, the Company recognized a curtailment gain in its U.S. pension plans of $11 million, as certain U.S. pension plans benefits were frozen for the portion of the participant population that was impacted by the divestiture. Obligations and funded status The aggregate change in projected benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2021 2020 Change in projected benefit obligation Beginning of year $ 5,675 $ 5,654 Service cost 36 37 Interest cost 98 130 Plan participants’ contributions 1 1 Amendments 18 22 Actuarial (gain)loss (130) 499 Benefits paid (423) (292) Curtailment and special termination benefits (1) (15) Settlements — (453) Foreign currency adjustments (38) 92 End of year $ 5,236 $ 5,675 Change in plan assets Fair value beginning of year $ 5,211 $ 5,170 Actual return on plan assets 184 656 Employer contributions 4 8 Plan participants’ contributions 1 1 Benefits paid (397) (269) Settlements — (453) Other — (8) Foreign currency adjustments (44) 106 Fair value end of year $ 4,959 $ 5,211 Funded status $ (277) $ (464) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 448 $ 324 Other current liabilities (19) (19) Pension liability (706) (769) Net amount recognized $ (277) $ (464) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 61 $ 51 Net amount recognized $ 61 $ 51 The accumulated benefit obligation for all defined benefit pension plans was $5.2 billion at January 1, 2022 and $5.6 billion at January 2, 2021. Information for pension plans with accumulated benefit obligations in excess of plan assets were: (millions) 2021 2020 Projected benefit obligation $ 3,623 $ 3,937 Accumulated benefit obligation $ 3,610 $ 3,921 Fair value of plan assets $ 2,906 $ 3,177 Information for pension plans with projected benefit obligations in excess of plan assets were: (millions) 2021 2020 Projected benefit obligation $ 3,707 $ 4,035 Accumulated benefit obligation $ 3,669 $ 3,988 Fair value of plan assets $ 2,984 $ 3,246 Expense The components of pension expense are presented in the following table. Service cost is recorded in COGS and SGA expense. All other components of net periodic benefit cost are included in OIE. 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) 2021 2020 2019 Service cost $ 36 $ 37 $ 36 Interest cost 98 130 172 Expected return on plan assets (301) (340) (340) Amortization of unrecognized prior service cost 8 7 7 Other expense — 8 — Recognized net (gain) loss (12) 184 235 Net periodic benefit cost (171) 26 110 Curtailment and special termination benefits (1) (15) (13) Pension (income) expense: Defined benefit plans (172) 11 97 Defined contribution plans 7 20 20 Total $ (165) $ 31 $ 117 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): 2021 – $41 million; 2020 – $42 million; 2019 – $39 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: 2021 2020 2019 Discount rate 2.6 % 2.2 % 2.9 % Long-term rate of compensation increase 3.5 % 3.4 % 3.4 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2021 2020 2019 Discount rate 2.3 % 2.8 % 3.7 % Long-term rate of compensation increase 3.4 % 3.4 % 4.0 % Long-term rate of return on plan assets 6.0 % 6.8 % 7.3 % 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 inflat ion. The U.S. model, which corresponds to approximately 69% of consolidated pension and other postretirement benefit plan assets, incorporates a long-term inflation assumption of 2.5% and an active management premium of 0.75% (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 2021 of 6.25% for the U.S. plans equated to approximately the 65th percentile expectation. Refer to Note 1. In 2019, the Society of Actuaries (SOA) published updated mortality tables and an updated improvement scale. In 2021, the SOA released an updated improvement scale that incorporates an additional year of data. In determining the appropriate mortality assumptions as of 2021 fiscal year-end, the Company used the 2019 SOA tables with collar adjustments based on Kellogg’s current population, consistent with the prior year. In addition, based on mortality information available from the Social Security Administration and other sources, the Company developed assumptions for future mortality improvement in line with our expectations for future experience. The change to the mortality assumption increased the year-end pension obligations by approximately $15 million. To conduct the annual review of discount rates, the Company selected the discount rate based on a cash-flow matching analysis using Willis 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 measurement dates for the defined benefit plans are consistent with the Company’s fiscal year end. Accordingly, the Company selects yield curves to measure benefit obligations consistent with market indices during December of each year. The Company may experience material actuarial gains or losses due to differences between assumed and actual experience and due to c hanging economic conditions. During 2021, the Company recognized a net actuarial gain of approximately $12 million driven by a gain related to plan experience and assumption changes, including a gain due to increases in the discount rate, partially offset by a loss from worse than expected asset returns. 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 exit prices quoted in active or non-active markets or based on observable inputs. Collective trusts : Valued at exit prices quoted in active or non-active markets or based on observable inputs. 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: Buy-in annuity contract: Value based on the calculated pension benefit obligation covered by the non-participating annuity contracts at year-end. 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 1, 2022, the Company had no transfers between Levels 1 and 2. The fair value of Plan assets as of January 1, 2022 summarized by level within the fair value hierarchy are as follows: (millions) Total Total Total Total Total Cash and cash equivalents $ 36 $ (5) $ — $ — $ 31 Corporate stock, common 318 — — — 318 Mutual funds: Debt — 51 — — 51 Collective trusts: Equity — — — 1,034 1,034 Debt — 599 — 477 1,076 Limited partnerships — — — 207 207 Bonds, corporate — 396 — 370 766 Bonds, government — 597 — — 597 Bonds, other — 87 — — 87 Real estate — — — 416 416 Buy-in annuity contract — — 269 — 269 Other — 104 — 3 107 Total $ 354 $ 1,829 $ 269 $ 2,507 $ 4,959 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at January 2, 2021 are summarized as follows: (millions) Total Total Total Total Total Cash and cash equivalents $ 35 $ 4 $ — $ 3 $ 42 Corporate stock, common 325 — — — 325 Mutual funds: Equity — — — 2 2 Debt — 5 — — 5 Collective trusts: Equity — — — 1,508 1,508 Debt — 548 — 415 963 Limited partnerships — — — 292 292 Bonds, corporate — 220 — 141 361 Bonds, government — 861 — — 861 Bonds, other — 64 — — 64 Real estate — — — 421 421 Buy-in annuity contract — — 280 — 280 Other — 78 — 9 87 Total $ 360 $ 1,780 $ 280 $ 2,791 $ 5,211 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. There were no unfunded commitments to purchase investments at January 1, 2022 or January 2, 2021. 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. Derivatives, including swaps, forward and futures contracts, may be used as asset class substitutes or for hedging or other risk management purposes. 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–29%; debt securities–31%; real estate and other–40%. Investment in Company common stock represented 1.2% and 1.1% of consolidated plan assets at January 1, 2022 and January 2, 2021, respectively. Plan funding strategies are influenced by tax regulations and funding requirements. The Company currently expects to contribute, before consideration of incremental discretionary contributions, approximately $3 million to its defined benefit pension plans during 2022. Level 3 gains and losses Changes in fair value of the Plan's Level 3 assets are summarized as follows: (millions) Annuity Contract December 28, 2019 $ — Purchases 268 Realized and unrealized gain 4 Currency translation 8 January 2, 2021 $ 280 Realized and unrealized loss (9) Currency translation (2) January 1, 2022 $ 269 Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): 2022–$299; 2023–$310; 2024–$315; 2025–$310; 2026–$308; 2027 to 2031–$1,534. |
Nonpension Postretirement and P
Nonpension Postretirement and Postemployment Benefits | 12 Months Ended |
Jan. 01, 2022 | |
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. The Company uses 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) 2021 2020 Change in accumulated benefit obligation Beginning of year $ 1,157 $ 1,116 Service cost 13 13 Interest cost 20 31 Actuarial (gain) loss (68) 55 Benefits paid (57) (58) End of year $ 1,065 $ 1,157 Change in plan assets Fair value beginning of year $ 1,491 $ 1,364 Actual return on plan assets 175 178 Employer contributions 16 24 Benefits paid (74) (75) Fair value end of year $ 1,608 $ 1,491 Funded status $ 543 $ 334 Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 577 $ 369 Other current liabilities (2) (1) Other liabilities (32) (34) Net amount recognized $ 543 $ 334 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (41) (50) Net amount recognized $ (41) $ (50) Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were: (millions) 2021 2020 Accumulated benefit obligation $ 34 $ 35 Fair value of plan assets $ — $ — Expense Components of postretirement benefit expense (income) were: (millions) 2021 2020 2019 Service cost $ 13 $ 13 $ 15 Interest cost 20 31 37 Expected return on plan assets (92) (94) (86) Amortization of unrecognized prior service credit (9) (9) (9) Recognized net (gain) loss (152) (29) (137) Net periodic benefit expense (income) (220) (88) (180) Curtailment — — (6) Postretirement benefit expense (income): Defined benefit plans (220) (88) (186) Defined contribution plans 13 13 11 Total $ (207) $ (75) $ (175) Assumptions The weighted-average actuarial assumptions used to determine benefit obligations were: 2021 2020 2019 Discount rate 2.9 % 2.5 % 3.3 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2021 2020 2019 Discount rate 2.5 % 3.3 % 4.0 % Long-term rate of return on plan assets 6.3 % 7.0 % 7.3 % 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 10. The assumed U.S. health care cost trend rate is 5.25% for 2022, decreasing 0.25% annually to 4.5% by the year 2025 and remaining at that level thereafter. These trend rates reflect the Company’s historical experience and management’s expectations regarding future trends. The Company may experience material actuarial gains or losses due to differences between assumed and actual experience and due to changing economic conditions. During 2021, the Company recognized a net actuarial gain of approximately $152 million driven by a gain related to plan experience and assumption changes, including gains due to better than expected asset returns and increases in the discount rate. Plan assets The fair value of Plan assets as of January 1, 2022 summarized by level within fair value hierarchy described in Note 10, are as follows: (millions) Total Total Total Total Total Cash and cash equivalents $ 1 $ 2 1 $ — $ — $ 3 Corporate stock, common 263 — — — 263 Mutual funds: Equity — 39 — — 39 Debt — 94 — — 94 Collective trusts: Equity — — — 616 616 Limited partnerships — — — 132 132 Bonds, corporate — 247 — — 247 Bonds, government — 99 — — 99 Bonds, other — 13 — — 13 Real estate — — — 102 102 Total $ 264 $ 494 $ — $ 850 $ 1,608 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at January 2, 2021 are summarized as follows: (millions) Total Total Total Total Total Cash and cash equivalents $ 3 $ 3 $ — $ — $ 6 Corporate stock, common 261 — — — 261 Mutual funds: Equity — 30 — — 30 Debt — 54 — — 54 Collective trusts: Equity — — — 669 669 Limited partnerships — — — 135 135 Bonds, corporate — 143 — — 143 Bonds, government — 96 — — 96 Bonds, other — 8 — — 8 Real estate — — — 89 89 Total $ 264 $ 334 $ — $ 893 $ 1,491 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The Company’s asset investment strategy for its VEBA trusts is consistent with that described for its pension trusts in Note 10. The current target asset allocation is 60% equity securities, 33% debt securities, and 7% real estate. The Company currently expects to contribute approximately $17 million to its VEBA trusts during 2022. There were no Level 3 assets during 2021 and 2020. 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 10. The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were: (millions) 2021 2020 Change in accumulated benefit obligation Beginning of year $ 48 $ 48 Service cost 3 3 Interest cost 1 1 Actuarial (gain)loss 1 — Benefits paid (5) (4) End of year $ 48 $ 48 Funded status $ (48) $ (48) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (5) $ (6) Other liabilities (43) (42) Net amount recognized $ (48) $ (48) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 1 $ 2 Net experience gain (14) (18) Net amount recognized $ (13) $ (16) Components of postemployment benefit expense were: (millions) 2021 2020 2019 Service cost $ 3 $ 2 $ 3 Interest cost 1 1 2 Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (2) (3) (5) Net periodic benefit cost $ 3 $ 1 $ 1 Settlement cost (1) (1) (3) Postemployment benefit expense $ 2 $ — $ (2) Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (millions) Postretirement Postemployment 2022 $ 64 $ 5 2023 64 7 2024 64 6 2025 64 5 2026 64 5 2027-2031 312 21 |
Multipemployer Pension and Post
Multipemployer Pension and Postretirement Plans | 12 Months Ended |
Jan. 01, 2022 | |
Multiemployer Plan, Pension, Insignificant [Abstract] | |
Multiemployer Plan [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 10 and Note 11, 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. Total contributions to multiemployer pension benefit plans were as follows (millions): 2021 - $7; 2 020 - $7; 2019 - $9. As discussed in Note 5, the Company engages in restructuring and cost reduction projects to help achieve its long-term growth targets. Current and future restructuring and cost reduction activities and other strategic initiatives could impact the Company's participation in certain multiemployer plans. 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. During 2019, the Company withdrew from two multi-employer pension plans. Additionally, the Company previously exited several multiemployer plans as part of past restructuring activities. The related liabilities recognized are our best estimate of the ultimate cost of withdrawing from these plans. At this time we have not yet reached agreement on the ultimate amount of these withdrawal liabilities. As a result, the actual cost could differ from our estimate based on final funding assessments. The net present value of the liabilities were determined using a risk free interest rate. The Company recognized expense related to the withdrawals as follows (millions): 2021 - $0; 2020 - $(5); 2019 - $132. The charges were recorded within Cost of goods sold on the Consolidated Statement of Income. The cash obligation associated with the 2019 withdrawal activity is approximately $8 million annually and is payable over a maximum 20-year period. Withdrawal liability payments made to multiemployer plans were as follow s (millions): 2021 - $10; 2020 - $21; 2019 - $8. The Company had withdrawal liabilities of $123 million and $130 million at January 1, 2022 and January 2, 2021, respectively, included within Other current liabilities and Other liabilities on the Consolidated Balance Sheet. 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): 20 21 – $13; 2020 – $13; 2019 – $11. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2022 | |
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) 2021 2020 2019 Income before income taxes United States $ 1,158 $ 1,018 $ 938 Foreign 808 583 367 1,966 1,601 1,305 Income taxes Currently payable Federal 188 129 345 State 44 26 52 Foreign 117 100 77 349 255 474 Deferred Federal 40 56 (124) State 4 9 (29) Foreign 81 3 — 125 68 (153) Total income taxes $ 474 $ 323 $ 321 The difference between the U.S. federal statutory tax rate and the Company’s effective income tax rate was: 2021 2020 2019 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rates varying from U.S. statutory rate (1.6) (2.4) (2.5) State income taxes, net of federal benefit 1.9 1.8 1.3 Cost (benefit) of remitted and unremitted foreign earnings 0.6 1.0 0.8 Revaluation of investment in foreign subsidiary — — 2.5 Net change in valuation allowance 2.7 1.4 (1.6) Statutory rate changes, deferred tax impact 0.7 0.2 0.3 U.S. deemed repatriation tax — (2.0) — Divestiture — — 2.9 Out-of-period adjustment — — 3.0 Other (1.2) (0.8) (3.1) Effective income tax rate 24.1 % 20.2 % 24.6 % As presented in the preceding table, the Company’s 2021 consolidated effective tax rate was 24.1%, as compared to 20.2% in 2020 and 24.6% in 2019. The 2021 effective income tax rate was unfavorably impacted by the following items. During the second quarter of 2021, the Company recorded tax expense of $23 million as a result of tax legislation enacted in the UK in June 2021, which increased the statutory UK tax rate from 19 percent to 25 percent for tax periods after April 1, 2023. The Company revalued its net deferred tax balances related to the UK business to reflect the increased tax rate. During the third quarter, the Company determined that certain foreign deferred tax assets were no longer more likely than not to be realized in the future and a full valuation allowance totaling $20 million was recorded on a discrete period basis. The 2020 effective income tax rate was favorably impacted by the reversal of a liability for uncertain tax positions of $32 million, resulting from the finalization of a tax examination during the third quarter. The reserves were related to the Company's estimate of the transition tax liability in conjunction with the finalization of accounting under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. The 2019 effective income tax rate was unfavorably impacted by a permanent basis difference in the assets sold to Ferrero as well as an out-of-period correction. During the fourth quarter of 2019, the Compan y recorded an out-of-period adjustment to correct an error in the tax rate applied to a deferred tax asset arising from an intangible property transfer in a prior year. The adjustment increased income tax expense and decreased deferred tax assets by $39 million, respectively. We determined the adjustment to be immaterial to our Consolidated Financial Statements for the year ended December 28, 2019 and related prior annual and quarterly periods. Transition tax on foreign earnings: The transition tax is a tax on the previously untaxed accumulated and current earnings and profits of certain of our foreign subsidiaries. In order to determine the amount of the transition tax, the Company must determine, in addition to other factors, the amount of post-1986 earnings and profits (E&P) of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. E&P is similar to retained earnings of the subsidiary, but requires other adjustments to conform to U.S. tax rules. During the third quarter of 2020, the Company reversed $32 million of a liability previously recorded as a result of the finalization of an IRS tax examination. As of January 1, 2022, approximately $1 billion of unremitted earnings were considered indefinitely reinvested. The unrecognized deferred tax liability for these earnings is estimated at approximately $28 million. However, this estimate could change based on the manner in which the outside basis difference associated with these earnings reverses. 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 2021 and 2020 were $363 million and $329 million, respectively, with related valuation allowances at year-end 2021 and 2020 of $248 million and $192 million, respectively. Of the total carryforwards at year-end 2021, $23 million expire in 5 years or less, $75 million expire in 2027 and later, and $265 million do not expire. The following table provides an analysis of the Company’s deferred tax assets and liabilities as of year-end 2021 and 2020: Deferred tax Deferred tax (millions) 2021 2020 2021 2020 U.S. state income taxes $ — $ 7 $ 11 $ — Advertising and promotion-related 14 13 — — Wages and payroll taxes 27 26 — — Inventory valuation 16 17 — — Employee benefits 19 118 — — Operating loss, credit and other carryforwards 363 329 — — Hedging transactions 13 49 — — Depreciation and asset disposals — — 264 234 Operating lease right-of-use assets — — 146 141 Operating lease liabilities 144 136 — — Trademarks and other intangibles — — 540 527 Deferred compensation 19 18 — — Stock options 33 32 — — Other 54 41 — — 702 786 961 902 Less valuation allowance (248) (192) — — Total deferred taxes $ 454 $ 594 $ 961 $ 902 Net deferred tax asset (liability) $ (507) $ (308) Classified in balance sheet as: Other assets $ 215 $ 254 Other liabilities (722) (562) Net deferred tax asset (liability) $ (507) $ (308) The change in valuation allowance reducing deferred tax assets was: (millions) 2021 2020 2019 Balance at beginning of year $ 192 $ 146 $ 166 Additions charged to income tax expense (b) 59 62 25 Reductions credited to income tax expense (a) (6) (24) (47) Acquisition of noncontrolling interest 13 — — Currency translation adjustments (10) 8 2 Balance at end of year $ 248 $ 192 $ 146 (a) During 2019, the Company decreased the valuation allowance by $32 million related to the revaluation of its investment in a foreign subsidiary. (b) During 2021, the Company increased the valuation allowance $20 million to fully reserve for net deferred tax assets of a foreign subsidiary. During 2020, the Company increased the valuation allowance by $41 million related to the revaluation of its investment in a foreign subsidiary. 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 2021 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 2020. The Company is under examination for income and non-income tax filings in various state and foreign jurisdictions. As of January 1, 2022, the Company has classif ied $16 million of unrecognized tax benefits as a current tax liability. Managements estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability expected to be settled within one year, offset by approximately $4 million of projected additions during the next twelve months 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 1, 2022, January 2, 2021 and December 28, 2019. For the 2021 year, approximately $43 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods. (millions) 2021 2020 2019 Balance at beginning of year $ 65 $ 90 $ 97 Tax positions related to current year: Additions 5 5 5 Tax positions related to prior years: Additions 5 8 4 Reductions (a) (13) (35) (14) Settlements (9) (2) (1) Lapses in statutes of limitation (3) (1) (1) Balance at end of year $ 50 $ 65 $ 90 (a) During the third quarter of 2020, the Company released $32 million of tax reserves as a result of finalization of an IRS tax examination. During the year ended January 1, 2022, the Company paid tax-related interest totaling $2 million and recognized $(4) million of tax related interest, decreasing the balance to $7 million at year-end. During the year ended January 2, 2021, the Company paid tax-related interest totaling $1 million and recognized $3 million of tax related interest, increasing the balance to $13 million at year-end. During the year ended December 28, 2019, the Company settled certain tax matters resulting in an $11 million net reduction of the tax interest accrual, decreasing the balance to $11 million at year-end. |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 12 Months Ended |
Jan. 01, 2022 | |
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 and nonderivative financial and commodity instruments, including futures, options, and swaps, where appropriate, to manage these risks. Instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged. The Company designates derivatives and nonderivative hedging instruments 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. Derivative instruments are classified on the Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as other assets or other current liabilities on the Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Consolidated Balance Sheet. On the Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. Total notional amounts of the Company’s derivative instruments as of January 1, 2022 and January 2, 2021 were as follows: (millions) 2021 2020 Foreign currency exchange contracts $ 2,828 $ 2,856 Cross-currency contracts 1,343 1,411 Interest rate contracts 2,816 2,632 Commodity contracts 360 314 Total $ 7,347 $ 7,213 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 1, 2022 and January 2, 2021, 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, cross-currency contracts and foreign 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. Foreign currency contracts are valued using an income approach based on forward rates less the contract rate multiplied by the notional amount. Cross-currency contracts are valued based on changes in the spot rate at the time of valuation compared to the spot rate at the time of execution, as well as the change in the interest differential between the two currencies. 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 1, 2022 or January 2, 2021. 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 1, 2022 and January 2, 2021: Derivatives designated as hedging instruments 2021 2020 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 32 $ 32 $ — $ 14 $ 14 Other Assets — 15 15 — 16 16 Interest rate contracts (a): Other current assets — 10 10 — — — Other assets — 8 8 — 60 60 Total assets $ — $ 65 $ 65 $ — $ 90 $ 90 Liabilities: Cross currency contracts: Other current liabilities $ — $ (2) $ (2) $ — $ (13) $ (13) Other liabilities — (7) (7) — (21) (21) Interest rate contracts (a): Other current liabilities — (1) (1) — (3) (3) Other liabilities — (4) (4) — — — Total liabilities $ — $ (14) $ (14) $ — $ (37) $ (37) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.2 billion and $0.8 billion as of January 1, 2022 and January 2, 2021, respectively. Derivatives not designated as hedging instruments 2021 2020 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 18 $ 18 $ — $ 48 $ 48 Other assets — 5 5 — — — Interest rate contracts: Other current assets — 4 4 — 4 4 Other assets — — — — 13 13 Commodity contracts: Other current assets 5 — 5 9 — 9 Total assets $ 5 $ 27 $ 32 $ 9 $ 65 $ 74 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (20) $ (20) $ — $ (73) $ (73) Other liabilities — (6) (6) — (4) (4) Interest rate contracts: Other current liabilities — (6) (6) — (6) (6) Other liabilities — (7) (7) — (22) (22) Commodity contracts: Other current liabilities (6) — (6) (1) — (1) Total liabilities $ (6) $ (39) $ (45) $ (1) $ (105) $ (106) 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 $2.4 billion and $2.8 billion as of January 1, 2022 and January 2, 2021, respectively. The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of January 1, 2022 and January 2, 2021. (millions) Line Item in the Consolidated Balance Sheet in which the hedged item is included Carrying amount of the hedged liabilities Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a) January 1, January 2, January 1, January 2, Interest rate contracts Long-term debt $ 2,903 $ 2,568 $ 12 $ 25 (a) The hedged long-term debt includes $13 million and $16 million of hedging adjustment on discontinued hedging relationships as of January 1, 2022 and January 2, 2021, 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 1, 2022 and January 2, 2021 would be adjusted as detailed in the following table: As of January 1, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 97 $ (47) $ 8 $ 58 Total liability derivatives $ (59) $ 47 $ 12 $ — As of January 2, 2021 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 164 $ (116) $ — $ 48 Total liability derivatives $ (143) $ 116 $ 5 $ (22) The effect of derivative instruments on the Consolidated Statement of Income for the years ended January 1, 2022, January 2, 2021 and December 28, 2019: Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) Gain (loss) excluded from assessment of hedge effectiveness Location of gain (loss) in income of excluded component 2021 2020 2019 2021 2020 2019 Foreign currency denominated long-term debt $ 175 $ (236) $ 60 $ — $ — $ — Cross-currency contracts 61 (93) 6 26 34 34 Interest expense Total $ 236 $ (329) $ 66 $ 26 $ 34 $ 34 Derivatives not designated as hedging instruments (millions) Location of gain Gain (loss) 2021 2020 2019 Foreign currency exchange contracts COGS $ (21) $ 11 $ (16) Foreign currency exchange contracts SGA expense 13 (1) (2) Foreign currency exchange contracts OIE (3) (6) (4) Interest rate contracts Interest expense 1 2 — Commodity contracts COGS 107 6 4 Total $ 97 $ 12 $ (18) The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended January 1, 2022, January 2, 2021 and December 28, 2019: January 1, 2022 January 2, 2021 December 28, 2019 (millions) Interest expense Interest expense Interest expense Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded $ 223 $ 281 $ 284 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items 14 (7) (33) Derivatives designated as hedging instruments (12) 7 37 Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (22) (14) (4) During the next 12 months, the Company expects $17 million of net deferred losses reported in accumulated other comprehensive income (AOCI) at January 1, 2022 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 1, 2022 was not material. 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 1, 2022 triggered by credit-risk-related contingent features. Other fair value measurements Fair Value Measurements on a Nonrecurring Basis During the year ended January 2, 2021, the Company invested and sold $250 million in a mutual fund holding short term debt securities. The investment was measured at fair value using the net asset value (NAV) per share as a practical expedient and as a result, this investment has not been classified in the fair value hierarchy. The gain associated with the sale of the investment was less than $1 million and was recorded in OIE. The following is a summary of the carrying and market values of the Company's available for sale securities: 2021 2020 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ 52 $ — $ 52 $ 62 $ 3 $ 65 During the year ended January 1, 2022, the Company sold level 2 corporate bonds for $72 million resulting in a gain of $2 million, recorded in OIE. Also during the year ended January 1, 2022, the Company purchased approximately $61 million in level 2 corporate bonds. The market values of the Company's investments in level 2 corporate bonds were based on matrices or models from pricing vendors. Unrealized gains and losses were included in the Consolidated Statement of Comprehensive Income. Additionally, these investments were recorded within Other current assets and Other assets on the Consolidated Balance Sheet, based on the maturity of the individual security. The maturity dates of the securities range from 2022 to 2036. The Company reviews its investment portfolio for any unrealized losses that would be deemed other-than-temporary and requires the recognition of an impairment loss in earnings. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than its cost, the Company's intent to hold the investment, and whether it is more likely than not that the Company will be required to sell the investment before recovery of the cost basis. The Company also considers the type of security, related industry and sector performance, and published investment ratings. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. If conditions within individual markets, industry segments, or macro-economic environments deteriorate, the Company could incur future impairments. Equity investments We hold equity investments in certain companies that we do not have the ability to exercise significant influence. Equity investments without a readily determinable fair value are recorded at original cost. Investments with a readily determinable fair value, which are level 2 investments, are measured at fair value based on observable market price changes, with gains and losses recorded through net earnings. During 2021, we recorded a $20 million mark-to-market gain on these investments. Equity investments were approximately $40 million and $20 million as of January 1, 2022 and January 2, 2021, respectively. Additionally, these investments were recorded within Other noncurrent assets on the Consolidated Balance Sheet. Financial instruments The carrying values of the Company’s short-term items, including cash, cash equivalents, accounts receivable, accounts payable, notes payable and current maturities of long-term debt approximate fair value. The fair value of the Company’s long-term debt, which are level 2 liabilities, is calculated based on broker quotes. The fair value and carrying value of the Company's long-term debt was $6.9 billion and $6.3 billion, respectively, as of January 1, 2022. The fair value and carrying value of the Company's long-term debt was $7.7 billion and $6.7 billion, respectively, as of January 2, 2021. Counterparty credit risk concentration The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative financial and commodity contracts. Management believes a concentration of credit risk with respect to derivative counterparties is limited due to the credit ratings and use of master netting and reciprocal collateralization agreements with the counterparties and the use of exchange-traded commodity contracts. Master netting agreements apply in situations where the Company executes multiple contracts with the same counterparty. Certain counterparties represent a concentration of credit risk to the Company. If those counterparties fail to perform according to the terms of derivative contracts, this could result in a loss to the Company of approximately $24 million, net of collateral already received from those counterparties as of January 1, 2022. For certain derivative contracts, reciprocal collateralization agreements with counterparties call for the posting of collateral in the form of cash, treasury securities or letters of credit if a fair value loss position to the Company or its counterparties exceeds a certain amount. In addition, the company is required to maintain cash margin accounts in connection with its open positions for exchange-traded commodity derivative instruments executed with the counterparty that are subject to enforceable netting agreements. As of January 1, 2022, the Company posted $20 million in margin deposits for exchange-traded commodity derivative instruments, which was reflected as an increase in accounts receivable, net on the Consolidated Balance Sheet. Management believes concentrations of credit risk with respect to accounts receivable is limited due to the generally high credit quality of the Company’s major customers, as well as the large number and geographic dispersion of smaller customers. However, the Company conducts a disproportionate amount of business with a small number of large multinational grocery retailers, with the five largest accounts encompassing approximately 26% of consolidated trade receivables at January 1, 2022. Refer to Note 1 for disclosures regarding the Company’s accounting policies for derivative instruments. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 01, 2022 | |
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. In 2016, a class action complaint was filed against Kellogg in the Northern District of California relating to statements made on packaging for certain products. In August 2019, the Court ruled in favor of the plaintiff regarding certain statements made on the Company’s products and ordered the parties to conduct settlement discussions related to all matters in dispute. In October 2019, the plaintiff filed a motion to the Court to approve a settlement between Kellogg and the class. During 2019, the Company concluded that the contingency related to the unfavorable ruling was probable and estimable, resulting in a liability being reco rded. In January 2021, the parties reached a new settlement that was within the amount of the contingency the Company recorded in December 2019. In June 2021, the court entered an order granting preliminary approval of the settlement. In November 2021, the court finalized the settlement. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | REPORTABLE SEGMENTS Kellogg Company is the world’s leading producer of cereal, second largest producer of crackers and a leading producer of savory snacks and frozen foods. Additional product offerings include toaster pastries, cereal bars, veggie foods, and noodles. Kellogg products are manufactured and marketed globally. Principal markets for these products include the United States, United Kingdom, Nigeria, Canada, Mexico and Australia. The Company manages its operations through four operating segments that are based on geographic location - North America which includes U.S. businesses and Canada; Europe which consists of European countries; Latin America which consists of Central and South America and includes Mexico; and AMEA (Asia Middle East Africa) which consists of Africa, Middle East, Australia and other Asian and Pacific markets. These operating segments also represent our reportable segments. On July 28, 2019, the Company completed its sale of selected cookies, fruit and fruit flavored snacks, pie crusts, and ice cream cone businesses to Ferrero for approximately $1.3 billion in cash. Both the total assets and the net assets, consisting primarily of goodwill and intangibles, property, plant and equipment, and inventory, of the businesses were approximately $1.3 billion. The operating results for these businesses were primarily included in the North America reporting segment prior to the sale. Reported net sales for the divested businesses totaled $562 million for the year ended December 28, 2019. 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. Reportable segment results were as follows: (millions) 2021 2020 2019 Net sales North America $ 8,174 $ 8,361 $ 8,390 Europe 2,397 2,232 2,092 Latin America 997 914 940 AMEA 2,613 2,263 2,156 Consolidated 14,181 13,770 $ 13,578 Operating profit North America (a) $ 1,329 $ 1,473 $ 1,215 Europe 350 301 222 Latin America 109 97 85 AMEA 246 202 195 Total Reportable Segments 2,034 2,073 1,717 Corporate (282) (312) (316) Consolidated $ 1,752 $ 1,761 $ 1,401 Depreciation and amortization North America $ 262 $ 282 $ 291 Europe 92 84 80 Latin America 25 30 30 AMEA 84 79 76 Total Reportable Segments 463 475 477 Corporate 4 4 7 Consolidated $ 467 $ 479 $ 484 (a) During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million. Certain items such as interest expense and income taxes, while not included in the measure of reportable segment operating results, are regularly reviewed by the chief operating decision maker (CODM) for the Company’s internationally-based reportable segments as shown below. (millions) 2021 2020 2019 Interest expense North America $ — $ — $ — Europe 4 4 6 Latin America 1 6 9 AMEA 17 8 14 Corporate 201 263 255 Consolidated $ 223 $ 281 $ 284 Income taxes Europe $ 48 $ 29 $ 48 Latin America 52 20 16 AMEA 40 33 23 Corporate & North America 334 241 234 Consolidated $ 474 $ 323 $ 321 Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by operating segment. The CODM does review additions to long-lived assets based on operating segment. (millions) 2021 2020 2019 Additions to long-lived assets North America $ 324 $ 270 $ 356 Europe 102 120 83 Latin America 42 31 41 AMEA 73 77 101 Corporate 12 7 5 Consolidated $ 553 $ 505 $ 586 The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 19% of consolidated net sales during 2021, 2020, and 2019, 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) 2021 2020 2019 Net sales United States $ 7,646 $ 7,821 $ 7,885 All other countries 6,535 5,949 5,693 Consolidated $ 14,181 $ 13,770 $ 13,578 Long-lived assets United States $ 2,092 $ 2,048 $ 1,996 All other countries 1,735 1,665 1,616 Consolidated $ 3,827 $ 3,713 $ 3,612 Supplemental product information is provided below for net sales to external customers: (millions) 2021 2020 2019 Snacks $ 6,807 $ 6,281 $ 6,663 Cereal 5,123 5,433 5,029 Frozen 1,106 1,139 1,037 Noodles and other 1,145 917 849 Consolidated $ 14,181 $ 13,770 $ 13,578 |
Supplemental Financial Statemen
Supplemental Financial Statement Data | 12 Months Ended |
Jan. 01, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Data [Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT DATA Consolidated Statement of Income (millions) 2021 2020 2019 Research and development expense $ 134 $ 135 $ 144 Advertising expense $ 790 $ 781 $ 676 Consolidated Balance Sheet (millions) 2021 2020 Trade receivables $ 1,240 $ 1,272 Allowance for expected credit losses (15) (19) Refundable income taxes 62 66 Other receivables 202 218 Accounts receivable, net $ 1,489 $ 1,537 Raw materials, spare parts, and supplies $ 383 $ 338 Finished goods and materials in process 1,015 946 Inventories $ 1,398 $ 1,284 Land $ 123 $ 120 Buildings 2,238 2,135 Machinery and equipment 6,277 6,080 Capitalized software 594 543 Construction in progress 623 641 Accumulated depreciation (6,028) (5,806) Property, net $ 3,827 $ 3,713 Other intangibles $ 2,552 $ 2,612 Accumulated amortization (143) (121) Other intangibles, net $ 2,409 $ 2,491 Pension $ 448 $ 324 Deferred income taxes 215 254 Nonpension post retirement benefits 577 369 Other 473 515 Other assets $ 1,713 $ 1,462 Accrued income taxes $ 49 $ 58 Other 714 709 Other current liabilities $ 763 $ 767 Income taxes payable $ 40 $ 56 Nonpension postretirement benefits 32 34 Other 384 435 Other liabilities $ 456 $ 525 Allowance for expected credit losses (millions) 2021 2020 2019 Balance at beginning of year $ 19 $ 10 $ 10 Additions (reductions) charged to expense (1) 13 9 Expected credit losses charged to reserve (3) (4) (9) Balance at end of year $ 15 $ 19 $ 10 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
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 (Kellogg or the Company). The Company continually evaluates its involvement with variable interest entities (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 records investments in equity securities at fair value if it is not able to exercise significant influence over the operating and financial decisions of the affiliate. The Company's investments in equity securities without a readily determinable fair value are recorded at original cost with adjustments for fair value only when observable price changes from orderly transactions for the investment are identified. Our investments in unconsolidated affiliates and equity securities without a readily determinable fair value are evaluated, at least annually, for indicators of an other-than-temporary impairment. 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 2021 and 2019 fiscal years each contained 52 weeks and ended on |
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 expected credit losses and prompt payment discounts. Trade receivables do not bear interest. The allowance for expected credit losses represents management’s estimate of the amount of probable credit losses in existing accounts receivable, as determined from a review of past due balances, historical loss information, and an evaluation of customer accounts for potential future losses. Account balances are written off against the allowance when management determines the receivable is uncollectible. For the fiscal years ended 2021 and 2020 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 2 for information on sales of accounts receivable. |
Inventories [Policy Text Block] | Inventories are valued at the lower of cost or net realizable value. 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 15-30; office equipment 5; computer equipment and capitalized software 3-7; building components 20; building structures 10-50. 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. There were no material assets held for sale at the fiscal year-end 2021 or 2020. |
Goodwill and other intangible assets [Policy Text Block] | The Company reviews our operating segment and reporting unit structure annually or as significant changes in the organization occur and assesses goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our reporting units with goodwill. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In our quantitative testing, the Company compares a reporting unit’s estimated fair value with its carrying value with a reporting unit’s fair value being estimated using market multiples. This approach employs market multiples based on either sales or earnings before interest, taxes, depreciation and amortization 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 that incorporates assumptions surrounding planned growth rates, market-based discount rates and estimates of residual value. 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. These estimates are made using various inputs including historical data, current and anticipated market conditions, management plans, and market comparables. If the carrying value of a reporting unit exceeds its fair value, the Company considers the reporting unit impaired and reduces its carrying value of goodwill such that the reporting unit’s new carrying value is the estimated fair value. Similarly, the Company assesses indefinite-life intangible assets impairment risk throughout the year by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of these intangible assets. Annually during the fourth quarter, in conjunction with our annual budgeting process, the Company may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, the Company may instead perform a quantitative impairment test. In the quantitative testing, the Company compares an intangible asset’s estimated fair value with its carrying value with the intangible asset’s fair value being determined using estimates of future cash flows to be generated from that asset based on estimates of future sales, as well as assumptions surrounding earnings growth rates, royalty rates and discount 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. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. We amortize definite-life intangible assets over their estimated useful lives, which materially approximates the pattern of economic benefit and evaluate them for impairment as we do other long-lived assets. |
Accounts payable [Policy Text Block] | The Company has agreements with third parties to provide accounts payable tracking systems which facilitate participating suppliers’ ability to monitor and, if elected, sell payment obligations from the Company to designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to sell one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s goal is to capture overall supplier savings, in the form of payment terms or vendor funding, and the agreements facilitate the suppliers’ ability to sell payment obligations, while providing them with greater working capital flexibility. The Company has no economic interest in the sale of these suppliers’ receivables and no direct financial relationship with the financial institutions concerning these services. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the Company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. The payment of these obligations by the Company is included in cash used in operating activities in the Consolidated Statement of Cash Flows. As of January 1, 2022, $905 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $685 million of those payment obligations to participating financial institutions. As of January 2, 2021, $909 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system, and participating suppliers had sold $670 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 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. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements. The Company also recognizes revenue from the license of our trademarks granted to third parties who uses these trademarks on their merchandise and revenue from hauling services provided to third parties within certain markets. Revenue from these licenses and hauling services is not material to the Company. Contract balances recognized in the current period that are not the result of current period performance are not material to the Company. The Company also does not incur costs to obtain or fulfill contracts. The Company does not adjust the promised amount of consideration for the effects of significant financing components as the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. The Company accounts for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. The Company excludes from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer for sales taxes. Performance obligations The Company recognizes revenue when (or as) performance obligations are satisfied by transferring control of the goods to customers. Control is transferred upon delivery of the goods to the customer. The customer is invoiced with payment terms which are commensurate with the customer’s credit profile. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. The Company assesses the goods and services promised in its customers’ purchase orders and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised, whether explicitly stated or implied based on customary business practices. For a purchase order that has more than one performance obligation, the Company allocates the total consideration to each distinct performance obligation on a relative standalone selling price basis. Significant Judgments The Company offers various forms of trade promotions and the methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to provisions based on actual occurrence or performance. Where applicable, future provisions are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company's promotional activities are conducted either through the retail trade or directly with consumers and include activities such as in-store displays and events, feature price discounts, consumer coupons, contests and loyalty programs. The costs of these activities are generally recognized at the time the related revenue is recorded, which normally precedes the actual cash expenditure. The recognition of these costs therefore requires management judgment regarding the volume of promotional offers that will be redeemed by either the retail trade or consumer. These estimates are made using various techniques including historical data on performance of similar promotional programs. Differences between estimated expense and actual redemptions are normally immaterial in relation to net sales and recognized as a change in management estimate in a subsequent period. The liability associated with these promotions was recorded in other current liabilities. The Company classifies promotional payments to its customers, the cost of consumer coupons, and other cash redemption offers in net sales. |
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 also classifies consumer promotional expenditures in SGA expense. These promotional expenses are estimated using various techniques including historical cash expenditure and redemption experience and patterns. Differences between estimated expense and actual redemptions are normally immaterial and recognized as a change in management estimate in a subsequent period. The liability associated with these advertising and promotional activities is recorded in other current liabilities. |
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 in SGA and COGS 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 prorate 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. |
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. Management monitors the Company’s ability to utilize certain future tax deductions, operating losses and tax credit carryforwards, prior to expiration as well as the reinvestment assertion regarding our undistributed foreign earnings. 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. |
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. Derivative instruments are classified on the Consolidated Balance Sheet based on the contractual maturity of the instrument or the timing of the underlying cash flows of the instrument for derivatives with contractual maturities beyond one year. Any collateral associated with derivative instruments is classified as other assets or other current liabilities on the Consolidated Balance Sheet depending on whether the counterparty collateral is in an asset or liability position. Margin deposits related to exchange-traded commodities are recorded in accounts receivable, net on the Consolidated Balance Sheet. On the Consolidated Statement of Cash Flows, cash flows associated with derivative instruments are classified according to the nature of the underlying hedged item. Cash flows associated with collateral and margin deposits on exchange-traded commodities are classified as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position. 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) or interest expense. 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 hedged 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. 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. 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. |
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, and long-term rate of return on plan assets and health care cost trend rate. Service cost is reported in COGS and SGA expense on the Consolidated Statement of Income. All other components of net periodic pension cost are included in OIE. 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. All other components of pension and postretirement benefit expense, including interest cost, expected return on assets, prior service cost, and experience gains and losses are considered unallocated corporate costs and are not included in the measure of reportable segment operating results. See Note 16 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. |
Leases [Policy Text Block] | The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. Finance lease obligations and activity are not material to the Consolidated Financial Statements. Lease obligations are primarily for real estate assets, with the remainder related to manufacturing and distribution related equipment, vehicles, information technology equipment, and rail cars. Leases with an initial term of 12 months or less are not recorded on the balance sheet. A portion of the Company's real estate leases include future variable rental payments that include inflationary adjustment factors. The future variability of these adjustments is unknown and therefore not included in the minimum lease payments. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases have remaining terms which range from less than 1 year to 20 years and the majority of leases provide the Company with the option to exercise one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed. The Company combines lease and non-lease components together in determining the minimum lease payments for the majority of leases. The Company has elected to not combine lease and non-lease components for assets controlled indirectly through third party service-related agreements that include significant production related costs. The Company has closely analyzed these agreements to ensure any embedded costs related to the securing of the leased asset is properly segregated and accounted for in measuring the lease assets and liabilities. |
New Accounting Standards [Policy Text Block] | New accounting standardsReclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) permitting a company to reclassify the disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 on items within accumulated other comprehensive income (AOCI) to retained earnings. We elected to adopt the ASU effective in the first quarter of 2019 and reclassified the disproportionate income tax effect recorded within AOCI to retained earnings. This resulted in a decrease to AOCI and an increase to retained earnings of $22 million. The adjustment primarily related to deferred taxes previously recorded for pension and other postretirement benefits, as well as hedging positions for debt and net investment hedges. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill, intangible assets subject to amortization, consisting primarily of customer relationships, and indefinite-lived intangible assets, consisting of brands and distribution agreements, are presented in the following tables: Carrying amount of goodwill (millions) North Europe Latin AMEA Consolidated December 28, 2019 $ 4,422 $ 347 $ 213 $ 879 $ 5,861 Currency translation adjustment 1 20 (33) (50) (62) January 2, 2021 $ 4,423 $ 367 $ 180 $ 829 $ 5,799 Acquisition — — — 33 33 Currency translation adjustment — (17) (9) (35) (61) January 1, 2022 $ 4,423 $ 350 $ 171 $ 827 $ 5,771 |
Schedule of Intangible Assets | Intangible assets 2021 2020 (millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangibles subject to amortization (a) $ 521 $ (143) $ 378 $ 544 $ (121) $ 423 Intangibles not subject to amortization $ 2,031 $ — $ 2,031 $ 2,068 $ — $ 2,068 |
Restructuring and Cost Reduct_2
Restructuring and Cost Reduction Activities (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring and Cost Reduction Activities | Program costs to date (millions) 2021 2020 2019 January 1, 2022 Employee related costs $ 10 $ 29 $ 49 $ 23 Pension curtailment (gain) loss, net — (8) (5) — Asset related costs 10 2 21 12 Other costs 7 6 48 1 Total $ 27 $ 29 $ 113 $ 36 Program costs to date (millions) 2021 2020 2019 January 1, 2022 North America $ 19 $ 8 $ 50 $ 17 Europe (1) 3 47 5 Latin America 4 5 15 9 AMEA — 12 3 — Corporate 5 1 (2) 5 Total $ 27 $ 29 $ 113 $ 36 |
Schedule of Exit Cost Reserves | (millions) Employee Curtailment Gain Loss, net Asset Related Other Total Liability as of December 28, 2019 $ 37 $ — $ — $ 1 $ 38 2020 restructuring charges 29 (8) 2 6 29 Cash payments (38) — — (7) (45) Non-cash charges and other — 8 (2) — 6 Liability as of January 2, 2021 $ 28 $ — $ — $ — $ 28 2021 restructuring charges 10 — 10 7 27 Cash payments (15) — (4) (7) (26) Non-cash charges and other — — (6) — (6) Liability as of January 1, 2022 $ 23 $ — $ — $ — $ 23 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Reclassification out of AOCI | Details about AOCI Amount Line item impacted (millions) 2021 2020 2019 (Gains) and losses on cash flow hedges: Interest rate contracts $ 22 $ 14 $ 4 Interest expense $ 22 $ 14 $ 4 Total before tax (6) (4) (1) Tax expense (benefit) $ 16 $ 10 $ 3 Net of tax Amortization of postretirement and postemployment benefits: Net experience (gains) losses $ (2) $ (3) $ (5) OIE Prior service (credit) cost — (1) (1) OIE $ (2) $ (4) $ (6) Total before tax — 1 1 Tax expense (benefit) $ (2) $ (3) $ (5) Net of tax (Gains) losses on available-for-sale securities Corporate bonds $ (2) $ — $ (4) OIE $ (2) $ — $ (4) Total before tax — — — Tax expense (benefit) $ (2) $ — $ (4) Net of tax Total reclassifications $ 12 $ 7 $ (6) Net of tax |
Summary of Accumulated Other Comprehensive Income (Loss) | (millions) January 1, 2022 January 2, 2021 Foreign currency translation adjustments $ (1,681) $ (1,668) Cash flow hedges — unrealized net gain (loss) (13) (57) Postretirement and postemployment benefits: Net experience gain (loss) (1) 2 Prior service credit (cost) (26) (12) Available-for-sale securities unrealized net gain (loss) — 3 Total accumulated other comprehensive income (loss) $ (1,721) $ (1,732) |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Schedule of supplemental operating lease information | (millions) Year ended January 1, 2022 Year ended January 2, 2021 Year ended December 28, 2019 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 138 $ 141 $ 134 Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 60 $ 144 $ 164 Modified leases $ 53 $ 84 $ 44 Weighted-average remaining lease term - operating leases 8 years 8 years Weighted-average discount rate - operating leases 2.7% 2.6% |
Operating leases future maturities | At January 1, 2022, future maturities of operating leases were as follows: (millions) Operating 2022 $ 127 2023 112 2024 96 2025 87 2026 66 2027 and beyond 210 Total minimum payments $ 698 Less interest (80) Present value of lease liabilities $ 618 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | (millions) 2021 2020 Principal Effective Principal Effective U.S. commercial paper $ — — % $ 25 0.20 % Bank borrowings 137 77 Total $ 137 $ 102 |
Schedule of Debt [Table Text Block] | The following table presents the components of subordinated long-term debt at year end January 1, 2022 and January 2, 2021: (millions) 2021 2020 4.50% $650 million U.S. Dollar Notes due 2046 $ 638 $ 638 7.45% $625 million U.S. Dollar Debentures due 2031 622 621 2.10% $500 million U.S. Dollar Notes due 2030 496 496 0.50% €300 million Euro Notes due 2029 338 — 4.30% $600 million U.S. Dollar Notes due 2028 592 596 3.40% $600 million U.S. Dollar Notes due 2027 596 596 3.25% $750 million U.S. Dollar Notes due 2026 744 742 1.25% €600 million Euro Notes due 2025 693 748 1.00% €600 million Euro Notes due 2024 695 756 2.65% $600 million U.S. Dollar Notes due 2023 545 542 2.75% $400 million U.S. Dollar Notes due 2023 207 204 0.80% €600 million Euro Notes due 2022 682 731 1.75% €500 million Euro Notes due 2021 — 610 Other 126 93 6,974 7,373 Less current maturities (712) (627) Balance at year end 6,262 6,746 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Compensation Expense For Equity Programs And Related Tax Benefits Text Block [Table Text Block] | (millions) 2021 2020 2019 Pre-tax compensation expense $ 75 $ 81 $ 61 Related income tax benefit $ 20 $ 21 $ 16 |
Schedule of Cash and Tax Benefits Received Upon Exercise of Stock Options and Similar Instruments [Table Text Block] | (millions) 2021 2020 2019 Total cash received from option exercises and similar instruments $ 63 $ 112 $ 64 Tax windfall (shortfall) classified as cash flow from operating activities $ (3) $ 2 $ (2) |
Schedule of Stock Option Valuation Model Assumptions for Grants [Table Text Block] | Stock option valuation model 2021 2020 2019 Weighted-average expected volatility 20.00 % 18.00 % 18.00 % Weighted-average expected term (years) 6.7 6.7 6.6 Weighted-average risk-free interest rate 0.96 % 1.35 % 2.59 % Dividend yield 3.90 % 3.40 % 3.90 % Weighted-average fair value of options granted $ 6.39 $ 7.34 $ 6.78 |
Share-based Payment Arrangement, Activity [Table Text Block] | Employee and Shares Weighted- Weighted- Aggregate Outstanding, beginning of year 14 $ 65 Granted 3 58 Exercised (1) 56 Forfeitures and expirations (1) 66 Outstanding, end of year 15 $ 64 5.7 $ 44 Exercisable, end of year 10 $ 66 4.4 $ 22 Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) 2020 2019 Outstanding, beginning of year 14 14 Granted 3 3 Exercised (2) (1) Forfeitures and expirations (1) (2) Outstanding, end of year 14 14 Exercisable, end of year 10 10 Weighted-average exercise price: Outstanding, beginning of year $ 65 $ 66 Granted 65 57 Exercised 59 56 Forfeitures and expirations 68 67 Outstanding, end of year $ 65 $ 65 Exercisable, end of year $ 66 $ 65 |
Summary of Restricted Stock Summary [Table Text Block] | Employee restricted stock units Shares (thousands) Weighted-average grant-date fair value Non-vested, beginning of year 1,736 $ 61 Granted 727 58 Vested (489) 63 Forfeited (188) 60 Non-vested, end of year 1,786 $ 60 Additionally, restricted stock unit activity for 2020 and 2019 is presented in the following table: Employee restricted stock units 2020 2019 Shares (in thousands): Non-vested, beginning of year 1,901 1,708 Granted 596 888 Vested (504) (469) Forfeited (257) (226) Non-vested, end of year 1,736 1,901 Weighted-average exercise price: Non-vested, beginning of year $ 61 $ 65 Granted 65 55 Vested 65 68 Forfeited 58 62 Non-vested, end of year $ 61 $ 61 |
Pension Benefits (Tables)
Pension Benefits (Tables) - Pension | 12 Months Ended |
Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Company Plan Benefit Expense [Table Text Block] | (millions) 2021 2020 Change in projected benefit obligation Beginning of year $ 5,675 $ 5,654 Service cost 36 37 Interest cost 98 130 Plan participants’ contributions 1 1 Amendments 18 22 Actuarial (gain)loss (130) 499 Benefits paid (423) (292) Curtailment and special termination benefits (1) (15) Settlements — (453) Foreign currency adjustments (38) 92 End of year $ 5,236 $ 5,675 Change in plan assets Fair value beginning of year $ 5,211 $ 5,170 Actual return on plan assets 184 656 Employer contributions 4 8 Plan participants’ contributions 1 1 Benefits paid (397) (269) Settlements — (453) Other — (8) Foreign currency adjustments (44) 106 Fair value end of year $ 4,959 $ 5,211 Funded status $ (277) $ (464) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 448 $ 324 Other current liabilities (19) (19) Pension liability (706) (769) Net amount recognized $ (277) $ (464) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 61 $ 51 Net amount recognized $ 61 $ 51 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | (millions) 2021 2020 Projected benefit obligation $ 3,623 $ 3,937 Accumulated benefit obligation $ 3,610 $ 3,921 Fair value of plan assets $ 2,906 $ 3,177 |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets | Information for pension plans with projected benefit obligations in excess of plan assets were: (millions) 2021 2020 Projected benefit obligation $ 3,707 $ 4,035 Accumulated benefit obligation $ 3,669 $ 3,988 Fair value of plan assets $ 2,984 $ 3,246 |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2021 2020 2019 Service cost $ 36 $ 37 $ 36 Interest cost 98 130 172 Expected return on plan assets (301) (340) (340) Amortization of unrecognized prior service cost 8 7 7 Other expense — 8 — Recognized net (gain) loss (12) 184 235 Net periodic benefit cost (171) 26 110 Curtailment and special termination benefits (1) (15) (13) Pension (income) expense: Defined benefit plans (172) 11 97 Defined contribution plans 7 20 20 Total $ (165) $ 31 $ 117 |
Defined Benefit Plan, Assumptions [Table Text Block] | 2021 2020 2019 Discount rate 2.6 % 2.2 % 2.9 % Long-term rate of compensation increase 3.5 % 3.4 % 3.4 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2021 2020 2019 Discount rate 2.3 % 2.8 % 3.7 % Long-term rate of compensation increase 3.4 % 3.4 % 4.0 % Long-term rate of return on plan assets 6.0 % 6.8 % 7.3 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Total Total Total Total Total Cash and cash equivalents $ 36 $ (5) $ — $ — $ 31 Corporate stock, common 318 — — — 318 Mutual funds: Debt — 51 — — 51 Collective trusts: Equity — — — 1,034 1,034 Debt — 599 — 477 1,076 Limited partnerships — — — 207 207 Bonds, corporate — 396 — 370 766 Bonds, government — 597 — — 597 Bonds, other — 87 — — 87 Real estate — — — 416 416 Buy-in annuity contract — — 269 — 269 Other — 104 — 3 107 Total $ 354 $ 1,829 $ 269 $ 2,507 $ 4,959 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at January 2, 2021 are summarized as follows: (millions) Total Total Total Total Total Cash and cash equivalents $ 35 $ 4 $ — $ 3 $ 42 Corporate stock, common 325 — — — 325 Mutual funds: Equity — — — 2 2 Debt — 5 — — 5 Collective trusts: Equity — — — 1,508 1,508 Debt — 548 — 415 963 Limited partnerships — — — 292 292 Bonds, corporate — 220 — 141 361 Bonds, government — 861 — — 861 Bonds, other — 64 — — 64 Real estate — — — 421 421 Buy-in annuity contract — — 280 — 280 Other — 78 — 9 87 Total $ 360 $ 1,780 $ 280 $ 2,791 $ 5,211 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Changes in fair value of the Plan's Level 3 assets are summarized as follows: (millions) Annuity Contract December 28, 2019 $ — Purchases 268 Realized and unrealized gain 4 Currency translation 8 January 2, 2021 $ 280 Realized and unrealized loss (9) Currency translation (2) January 1, 2022 $ 269 |
Nonpension Postretirement and_2
Nonpension Postretirement and Postemployment Benefits (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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) 2021 2020 Change in accumulated benefit obligation Beginning of year $ 1,157 $ 1,116 Service cost 13 13 Interest cost 20 31 Actuarial (gain) loss (68) 55 Benefits paid (57) (58) End of year $ 1,065 $ 1,157 Change in plan assets Fair value beginning of year $ 1,491 $ 1,364 Actual return on plan assets 175 178 Employer contributions 16 24 Benefits paid (74) (75) Fair value end of year $ 1,608 $ 1,491 Funded status $ 543 $ 334 Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 577 $ 369 Other current liabilities (2) (1) Other liabilities (32) (34) Net amount recognized $ 543 $ 334 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (41) (50) Net amount recognized $ (41) $ (50) |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were: (millions) 2021 2020 Accumulated benefit obligation $ 34 $ 35 Fair value of plan assets $ — $ — |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2021 2020 2019 Service cost $ 13 $ 13 $ 15 Interest cost 20 31 37 Expected return on plan assets (92) (94) (86) Amortization of unrecognized prior service credit (9) (9) (9) Recognized net (gain) loss (152) (29) (137) Net periodic benefit expense (income) (220) (88) (180) Curtailment — — (6) Postretirement benefit expense (income): Defined benefit plans (220) (88) (186) Defined contribution plans 13 13 11 Total $ (207) $ (75) $ (175) |
Defined Benefit Plan, Assumptions [Table Text Block] | 2021 2020 2019 Discount rate 2.9 % 2.5 % 3.3 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2021 2020 2019 Discount rate 2.5 % 3.3 % 4.0 % Long-term rate of return on plan assets 6.3 % 7.0 % 7.3 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Total Total Total Total Total Cash and cash equivalents $ 1 $ 2 1 $ — $ — $ 3 Corporate stock, common 263 — — — 263 Mutual funds: Equity — 39 — — 39 Debt — 94 — — 94 Collective trusts: Equity — — — 616 616 Limited partnerships — — — 132 132 Bonds, corporate — 247 — — 247 Bonds, government — 99 — — 99 Bonds, other — 13 — — 13 Real estate — — — 102 102 Total $ 264 $ 494 $ — $ 850 $ 1,608 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value of Plan assets at January 2, 2021 are summarized as follows: (millions) Total Total Total Total Total Cash and cash equivalents $ 3 $ 3 $ — $ — $ 6 Corporate stock, common 261 — — — 261 Mutual funds: Equity — 30 — — 30 Debt — 54 — — 54 Collective trusts: Equity — — — 669 669 Limited partnerships — — — 135 135 Bonds, corporate — 143 — — 143 Bonds, government — 96 — — 96 Bonds, other — 8 — — 8 Real estate — — — 89 89 Total $ 264 $ 334 $ — $ 893 $ 1,491 (a) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
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) 2021 2020 Change in accumulated benefit obligation Beginning of year $ 48 $ 48 Service cost 3 3 Interest cost 1 1 Actuarial (gain)loss 1 — Benefits paid (5) (4) End of year $ 48 $ 48 Funded status $ (48) $ (48) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (5) $ (6) Other liabilities (43) (42) Net amount recognized $ (48) $ (48) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ 1 $ 2 Net experience gain (14) (18) Net amount recognized $ (13) $ (16) |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2021 2020 2019 Service cost $ 3 $ 2 $ 3 Interest cost 1 1 2 Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (2) (3) (5) Net periodic benefit cost $ 3 $ 1 $ 1 Settlement cost (1) (1) (3) Postemployment benefit expense $ 2 $ — $ (2) |
Schedule of Expected Benefit Payments [Table Text Block] | (millions) Postretirement Postemployment 2022 $ 64 $ 5 2023 64 7 2024 64 6 2025 64 5 2026 64 5 2027-2031 312 21 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block] | (millions) 2021 2020 2019 Income before income taxes United States $ 1,158 $ 1,018 $ 938 Foreign 808 583 367 1,966 1,601 1,305 Income taxes Currently payable Federal 188 129 345 State 44 26 52 Foreign 117 100 77 349 255 474 Deferred Federal 40 56 (124) State 4 9 (29) Foreign 81 3 — 125 68 (153) Total income taxes $ 474 $ 323 $ 321 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2021 2020 2019 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rates varying from U.S. statutory rate (1.6) (2.4) (2.5) State income taxes, net of federal benefit 1.9 1.8 1.3 Cost (benefit) of remitted and unremitted foreign earnings 0.6 1.0 0.8 Revaluation of investment in foreign subsidiary — — 2.5 Net change in valuation allowance 2.7 1.4 (1.6) Statutory rate changes, deferred tax impact 0.7 0.2 0.3 U.S. deemed repatriation tax — (2.0) — Divestiture — — 2.9 Out-of-period adjustment — — 3.0 Other (1.2) (0.8) (3.1) Effective income tax rate 24.1 % 20.2 % 24.6 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax Deferred tax (millions) 2021 2020 2021 2020 U.S. state income taxes $ — $ 7 $ 11 $ — Advertising and promotion-related 14 13 — — Wages and payroll taxes 27 26 — — Inventory valuation 16 17 — — Employee benefits 19 118 — — Operating loss, credit and other carryforwards 363 329 — — Hedging transactions 13 49 — — Depreciation and asset disposals — — 264 234 Operating lease right-of-use assets — — 146 141 Operating lease liabilities 144 136 — — Trademarks and other intangibles — — 540 527 Deferred compensation 19 18 — — Stock options 33 32 — — Other 54 41 — — 702 786 961 902 Less valuation allowance (248) (192) — — Total deferred taxes $ 454 $ 594 $ 961 $ 902 Net deferred tax asset (liability) $ (507) $ (308) Classified in balance sheet as: Other assets $ 215 $ 254 Other liabilities (722) (562) Net deferred tax asset (liability) $ (507) $ (308) |
Summary of Valuation Allowance [Table Text Block] | (millions) 2021 2020 2019 Balance at beginning of year $ 192 $ 146 $ 166 Additions charged to income tax expense (b) 59 62 25 Reductions credited to income tax expense (a) (6) (24) (47) Acquisition of noncontrolling interest 13 — — Currency translation adjustments (10) 8 2 Balance at end of year $ 248 $ 192 $ 146 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | (millions) 2021 2020 2019 Balance at beginning of year $ 65 $ 90 $ 97 Tax positions related to current year: Additions 5 5 5 Tax positions related to prior years: Additions 5 8 4 Reductions (a) (13) (35) (14) Settlements (9) (2) (1) Lapses in statutes of limitation (3) (1) (1) Balance at end of year $ 50 $ 65 $ 90 |
Derivative Instruments and Fa_2
Derivative Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Total Notional Amounts of the Company's Derivative Instruments | (millions) 2021 2020 Foreign currency exchange contracts $ 2,828 $ 2,856 Cross-currency contracts 1,343 1,411 Interest rate contracts 2,816 2,632 Commodity contracts 360 314 Total $ 7,347 $ 7,213 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 1, 2022 and January 2, 2021: Derivatives designated as hedging instruments 2021 2020 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 32 $ 32 $ — $ 14 $ 14 Other Assets — 15 15 — 16 16 Interest rate contracts (a): Other current assets — 10 10 — — — Other assets — 8 8 — 60 60 Total assets $ — $ 65 $ 65 $ — $ 90 $ 90 Liabilities: Cross currency contracts: Other current liabilities $ — $ (2) $ (2) $ — $ (13) $ (13) Other liabilities — (7) (7) — (21) (21) Interest rate contracts (a): Other current liabilities — (1) (1) — (3) (3) Other liabilities — (4) (4) — — — Total liabilities $ — $ (14) $ (14) $ — $ (37) $ (37) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.2 billion and $0.8 billion as of January 1, 2022 and January 2, 2021, respectively. Derivatives not designated as hedging instruments 2021 2020 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 18 $ 18 $ — $ 48 $ 48 Other assets — 5 5 — — — Interest rate contracts: Other current assets — 4 4 — 4 4 Other assets — — — — 13 13 Commodity contracts: Other current assets 5 — 5 9 — 9 Total assets $ 5 $ 27 $ 32 $ 9 $ 65 $ 74 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (20) $ (20) $ — $ (73) $ (73) Other liabilities — (6) (6) — (4) (4) Interest rate contracts: Other current liabilities — (6) (6) — (6) (6) Other liabilities — (7) (7) — (22) (22) Commodity contracts: Other current liabilities (6) — (6) (1) — (1) Total liabilities $ (6) $ (39) $ (45) $ (1) $ (105) $ (106) |
Schedule of Derivative Instruments in Statement of Financial Position Fair Value | The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of January 1, 2022 and January 2, 2021. (millions) Line Item in the Consolidated Balance Sheet in which the hedged item is included Carrying amount of the hedged liabilities Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities (a) January 1, January 2, January 1, January 2, Interest rate contracts Long-term debt $ 2,903 $ 2,568 $ 12 $ 25 (a) The hedged long-term debt includes $13 million and $16 million of hedging adjustment on discontinued hedging relationships as of January 1, 2022 and January 2, 2021, respectively. |
Offsetting Assets | As of January 1, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 97 $ (47) $ 8 $ 58 Total liability derivatives $ (59) $ 47 $ 12 $ — As of January 2, 2021 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 164 $ (116) $ — $ 48 Total liability derivatives $ (143) $ 116 $ 5 $ (22) |
Offsetting Liabilities | As of January 1, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 97 $ (47) $ 8 $ 58 Total liability derivatives $ (59) $ 47 $ 12 $ — As of January 2, 2021 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 164 $ (116) $ — $ 48 Total liability derivatives $ (143) $ 116 $ 5 $ (22) |
Schedule of the Effect of Derivative Instrument on the Consolidated Statement of Income | The effect of derivative instruments on the Consolidated Statement of Income for the years ended January 1, 2022, January 2, 2021 and December 28, 2019: Derivatives and non-derivatives in net investment hedging relationships (millions) Gain (loss) Gain (loss) excluded from assessment of hedge effectiveness Location of gain (loss) in income of excluded component 2021 2020 2019 2021 2020 2019 Foreign currency denominated long-term debt $ 175 $ (236) $ 60 $ — $ — $ — Cross-currency contracts 61 (93) 6 26 34 34 Interest expense Total $ 236 $ (329) $ 66 $ 26 $ 34 $ 34 Derivatives not designated as hedging instruments (millions) Location of gain Gain (loss) 2021 2020 2019 Foreign currency exchange contracts COGS $ (21) $ 11 $ (16) Foreign currency exchange contracts SGA expense 13 (1) (2) Foreign currency exchange contracts OIE (3) (6) (4) Interest rate contracts Interest expense 1 2 — Commodity contracts COGS 107 6 4 Total $ 97 $ 12 $ (18) The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended January 1, 2022, January 2, 2021 and December 28, 2019: January 1, 2022 January 2, 2021 December 28, 2019 (millions) Interest expense Interest expense Interest expense Total amounts of income and expense line items presented in the Consolidated Income Statement in which the effects of fair value or cash flow hedges are recorded $ 223 $ 281 $ 284 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items 14 (7) (33) Derivatives designated as hedging instruments (12) 7 37 Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (22) (14) (4) |
Available-for-sale securities | The following is a summary of the carrying and market values of the Company's available for sale securities: 2021 2020 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ 52 $ — $ 52 $ 62 $ 3 $ 65 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (millions) 2021 2020 2019 Net sales North America $ 8,174 $ 8,361 $ 8,390 Europe 2,397 2,232 2,092 Latin America 997 914 940 AMEA 2,613 2,263 2,156 Consolidated 14,181 13,770 $ 13,578 Operating profit North America (a) $ 1,329 $ 1,473 $ 1,215 Europe 350 301 222 Latin America 109 97 85 AMEA 246 202 195 Total Reportable Segments 2,034 2,073 1,717 Corporate (282) (312) (316) Consolidated $ 1,752 $ 1,761 $ 1,401 Depreciation and amortization North America $ 262 $ 282 $ 291 Europe 92 84 80 Latin America 25 30 30 AMEA 84 79 76 Total Reportable Segments 463 475 477 Corporate 4 4 7 Consolidated $ 467 $ 479 $ 484 (a) During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million. |
Schedule of Interest Expense and Income Tax Expense by Segment [Table Text Block] | (millions) 2021 2020 2019 Interest expense North America $ — $ — $ — Europe 4 4 6 Latin America 1 6 9 AMEA 17 8 14 Corporate 201 263 255 Consolidated $ 223 $ 281 $ 284 Income taxes Europe $ 48 $ 29 $ 48 Latin America 52 20 16 AMEA 40 33 23 Corporate & North America 334 241 234 Consolidated $ 474 $ 323 $ 321 |
Schedule of Additions to Long Lived Assets by Segment [Table Text Block] | (millions) 2021 2020 2019 Additions to long-lived assets North America $ 324 $ 270 $ 356 Europe 102 120 83 Latin America 42 31 41 AMEA 73 77 101 Corporate 12 7 5 Consolidated $ 553 $ 505 $ 586 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | (millions) 2021 2020 2019 Net sales United States $ 7,646 $ 7,821 $ 7,885 All other countries 6,535 5,949 5,693 Consolidated $ 14,181 $ 13,770 $ 13,578 Long-lived assets United States $ 2,092 $ 2,048 $ 1,996 All other countries 1,735 1,665 1,616 Consolidated $ 3,827 $ 3,713 $ 3,612 |
Revenue from External Customers by Products and Services [Table Text Block] | (millions) 2021 2020 2019 Snacks $ 6,807 $ 6,281 $ 6,663 Cereal 5,123 5,433 5,029 Frozen 1,106 1,139 1,037 Noodles and other 1,145 917 849 Consolidated $ 14,181 $ 13,770 $ 13,578 |
Supplemental Financial Statem_2
Supplemental Financial Statement Data (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Data Consolidated Statement Of Income [Table Text Block] | Consolidated Statement of Income (millions) 2021 2020 2019 Research and development expense $ 134 $ 135 $ 144 Advertising expense $ 790 $ 781 $ 676 |
Supplemental Financial Data Consolidated Balance Sheet [Table Text Block] | Consolidated Balance Sheet (millions) 2021 2020 Trade receivables $ 1,240 $ 1,272 Allowance for expected credit losses (15) (19) Refundable income taxes 62 66 Other receivables 202 218 Accounts receivable, net $ 1,489 $ 1,537 Raw materials, spare parts, and supplies $ 383 $ 338 Finished goods and materials in process 1,015 946 Inventories $ 1,398 $ 1,284 Land $ 123 $ 120 Buildings 2,238 2,135 Machinery and equipment 6,277 6,080 Capitalized software 594 543 Construction in progress 623 641 Accumulated depreciation (6,028) (5,806) Property, net $ 3,827 $ 3,713 Other intangibles $ 2,552 $ 2,612 Accumulated amortization (143) (121) Other intangibles, net $ 2,409 $ 2,491 Pension $ 448 $ 324 Deferred income taxes 215 254 Nonpension post retirement benefits 577 369 Other 473 515 Other assets $ 1,713 $ 1,462 Accrued income taxes $ 49 $ 58 Other 714 709 Other current liabilities $ 763 $ 767 Income taxes payable $ 40 $ 56 Nonpension postretirement benefits 32 34 Other 384 435 Other liabilities $ 456 $ 525 |
Supplemental Financial Data Allowance For Doubtful Accounts [Table Text Block] | Allowance for expected credit losses (millions) 2021 2020 2019 Balance at beginning of year $ 19 $ 10 $ 10 Additions (reductions) charged to expense (1) 13 9 Expected credit losses charged to reserve (3) (4) (9) Balance at end of year $ 15 $ 19 $ 10 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 30, 2019 | Jan. 01, 2022 | Dec. 28, 2019 | Jan. 02, 2021 | |
Accounting Policies and New Accounting Standards [Line Items] | ||||
Income tax examination percentage likelihood of being realized upon settlement | 50.00% | |||
Maximum length of time, forward contracts and options | 18 months | |||
Maximum length of time hedged in price risk cash flow hedge | 18 months | |||
Payables Placed On Tracking System | $ 905 | $ 909 | ||
Payables Financed By Participating Suppliers | 685 | 670 | ||
Reclassification of tax effects relating to U.S. Tax Reform | $ 0 | |||
Operating lease, right-of-use assets | 640 | $ 658 | ||
Operating lease, liability | $ 618 | |||
Minimum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Expected rates of return | 25th | |||
Operating lease, term of contract | 12 months | |||
Operating Lease, remaining lease term | 1 year | |||
Maximum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Expected rates of return | 75th | |||
Operating Lease, remaining lease term | 20 years | |||
Machinery and Equipment [Member] | Minimum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Machinery and Equipment [Member] | Maximum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 30 years | |||
Office Equipment [Member] | Maximum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Computer Equipment and Capitalized Software [Member] | Minimum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Computer Equipment and Capitalized Software [Member] | Maximum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Building [Member] | Minimum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Building [Member] | Maximum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 50 years | |||
Building Components [Member] | Maximum | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
AOCI | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Reclassification of tax effects relating to U.S. Tax Reform | $ (22) | (22) | ||
Retained earnings | ||||
Accounting Policies and New Accounting Standards [Line Items] | ||||
Reclassification of tax effects relating to U.S. Tax Reform | $ 22 | $ 22 |
Sale of Accounts Receivable (De
Sale of Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Monetization Program | Other Income (Expense), Net | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Gain (Loss) on Sale of Accounts Receivable | $ (8) | $ (14) | $ (25) |
Monetization Program | Maximum | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfers Of Accounts Receivable Agreements | 1,100 | ||
Monetization Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | 549 | 783 | |
Kellogg Foreign Subsidiaries Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | $ 66 | $ 55 |
Divestitures and Investments _2
Divestitures and Investments in Unconsolidated Entities Divestiture Narrative (Details) - USD ($) $ in Millions | Jul. 28, 2019 | Dec. 28, 2019 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Sep. 28, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 0 | $ (7) | $ 1,332 | |||
Debt repurchase amount | $ 1,000 | |||||
Income taxes paid | $ 255 | $ 365 | 281 | 537 | ||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | $ 1,300 | |||||
Net assets | 1,300 | |||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | North America | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | 1,300 | |||||
Net assets | $ 1,300 | |||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | Other income (expense) | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on disposition of business | 38 | |||||
Disposition related transaction costs | 14 | |||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | Other income (expense) | North America | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | $ (4) | |||||
U.S. pension and nonpension postretirement plans | Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Curtailment gain | $ 17 |
Divestitures and Investments _3
Divestitures and Investments in Unconsolidated Entities Investment in TAF Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Business Acquisition [Line Items] | |||
Net sales | $ 14,181 | $ 13,770 | $ 13,578 |
Tolaram Africa Foods (TAF) PTE LTD | |||
Business Acquisition [Line Items] | |||
Net sales | $ 721 | $ 586 | |
Equity method investment ownership percentage | 50.00% | ||
TAF Investment in Affiliated Food Manufacturer | |||
Business Acquisition [Line Items] | |||
Equity method investment ownership percentage | 49.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 5,799 | $ 5,861 |
Goodwill Additions | 33 | |
Goodwill, Currency Translation Adjustments | (61) | (62) |
Goodwill | 5,771 | 5,799 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill | 4,423 | 4,422 |
Goodwill Additions | 0 | |
Goodwill, Currency Translation Adjustments | 0 | 1 |
Goodwill | 4,423 | 4,423 |
Europe | ||
Goodwill [Roll Forward] | ||
Goodwill | 367 | 347 |
Goodwill Additions | 0 | |
Goodwill, Currency Translation Adjustments | (17) | 20 |
Goodwill | 350 | 367 |
Latin America | ||
Goodwill [Roll Forward] | ||
Goodwill | 180 | 213 |
Goodwill Additions | 0 | |
Goodwill, Currency Translation Adjustments | (9) | (33) |
Goodwill | 171 | 180 |
AMEA | ||
Goodwill [Roll Forward] | ||
Goodwill | 829 | 879 |
Goodwill Additions | 33 | |
Goodwill, Currency Translation Adjustments | (35) | (50) |
Goodwill | $ 827 | $ 829 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Intangible Assets (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $ 521 | $ 544 |
Accumulated amortization | (143) | (121) |
Finite-Lived Intangible Assets, Net | 378 | 423 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangibles not subject to amortization, gross | 2,031 | 2,068 |
Intangibles not subject to amortization, accumulated amortization | 0 | 0 |
Intangibles not subject to amortization, net | 2,031 | $ 2,068 |
Estimated aggregate annual amortization expense for next twelve months | 26 | |
Estimated aggregate annual amortization expense for year two | 26 | |
Estimated aggregate annual amortization expense for year three | 26 | |
Estimated aggregate annual amortization expense for year four | 26 | |
Estimated aggregate annual amortization expense for year five | $ 26 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Annual Impairment Testing (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill and other intangible assets | $ 8,200 | ||
Other intangible assets excluding goodwill | 2,031 | $ 2,068 | |
Goodwill | 5,771 | 5,799 | $ 5,861 |
North America | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 4,423 | $ 4,423 | $ 4,422 |
Pringles and cracker related trademarks | North America | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Other intangible assets excluding goodwill | 1,700 | ||
Snacks category | North America | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Other intangible assets excluding goodwill | $ 184 |
Restructuring and Cost Reduct_3
Restructuring and Cost Reduction Activities Programs Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 27 | $ 29 | $ 113 |
Program cost to date | 36 | ||
Cash costs | $ 26 | 45 | |
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash implementation costs recovery time frame | 3 years | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Cash implementation costs recovery time frame | 5 years | ||
SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 9 | 31 | 83 |
Other (income) expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (8) | (5) | |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18 | 6 | 35 |
Other Restructuring Programs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 22 | 28 | |
Other Restructuring Programs | SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 9 | 22 | |
Other Restructuring Programs | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 13 | 6 | |
Employee related cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10 | 29 | 49 |
Program cost to date | 23 | ||
Cash costs | 15 | 38 | |
Employee related cost | North America Supply Chain Reconfiguration | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 5 | ||
Other cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7 | 6 | 48 |
Program cost to date | 1 | ||
Cash costs | 7 | 7 | |
Asset related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10 | 2 | 21 |
Program cost to date | 12 | ||
Cash costs | 4 | 0 | |
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (1) | 3 | 47 |
Program cost to date | 5 | ||
Europe | Europe Organization Efficiency Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (1) | 38 | |
Program cost to date | 37 | ||
Cash costs | 50 | ||
Europe | Europe Organization Efficiency Program | SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7 | 43 | |
Europe | Europe Organization Efficiency Program | Other (income) expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (8) | (5) | |
North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 19 | 8 | 50 |
Program cost to date | 17 | ||
North America | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 45 | ||
North America | North America Reorganization Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2 | $ 21 | |
Program cost to date | $ 23 | ||
North America | Employee related cost | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 4 | ||
North America | Other cost | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | 21 | ||
North America | Asset related costs | North America Supply Chain Reconfiguration | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | $ 20 |
Restructuring and Cost Reduct_4
Restructuring and Cost Reduction Activities Project K Total Expected Program Costs Narrative (Details) - Maximum - Project K $ in Millions | Jan. 01, 2022USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | $ 1,600 |
Asset related costs | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | 500 |
Employee related cost | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | 400 |
Other cost | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | 700 |
Incremental Capital Expenditures | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost, expected cost | $ 1,200 |
Restructuring and Cost Reduct_5
Restructuring and Cost Reduction Activities Project K Total Program Cost Percentage by Reportable Segment Narrative (Details) - Project K | 12 Months Ended |
Jan. 01, 2022 | |
North America | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 65.00% |
Europe | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 21.00% |
Latin America | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 4.00% |
AMEA | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 6.00% |
Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related cost expected cost allocation | 4.00% |
Restructuring and Cost Reduct_6
Restructuring and Cost Reduction Activities Project K Total Program Costs Since Inception Narrative (Details) $ in Millions | Jan. 01, 2022USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | $ 36 |
Project K | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | 1,574 |
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 | 928 |
Project K | SGA | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | 807 |
Project K | Other (income) expense | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and related costs since inception of program | $ (167) |
Restructuring and Cost Reduct_7
Restructuring and Cost Reduction Activities Schedule of Restructuring Programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 27 | $ 29 | $ 113 |
Program cost to date | 36 | ||
Employee related cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10 | 29 | 49 |
Program cost to date | 23 | ||
Pension curtailment (gain) loss, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | (8) | (5) |
Program cost to date | 0 | ||
Asset related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 10 | 2 | 21 |
Program cost to date | 12 | ||
Other cost | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7 | 6 | 48 |
Program cost to date | 1 | ||
North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 19 | 8 | 50 |
Program cost to date | 17 | ||
Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | (1) | 3 | 47 |
Program cost to date | 5 | ||
Latin America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4 | 5 | 15 |
Program cost to date | 9 | ||
AMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 12 | 3 |
Program cost to date | 0 | ||
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 5 | $ 1 | $ (2) |
Program cost to date | $ 5 |
Restructuring and Cost Reduct_8
Restructuring and Cost Reduction Activities Total Programs Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 27 | $ 29 | $ 113 |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18 | 6 | 35 |
SGA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 9 | 31 | 83 |
Other (income) expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ (8) | $ (5) |
Restructuring and Cost Reduct_9
Restructuring and Cost Reduction Activities Schedule of Restructuring Reserves Rollforward Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Restructuring and Related Activities [Abstract] | |||
Project reserves | $ 23 | $ 28 | $ 38 |
Restructuring and Cost Reduc_10
Restructuring and Cost Reduction Activities Reserves Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | $ 28 | $ 38 |
Restructuring charge | 27 | 29 |
Cash payments | (26) | (45) |
Non-cash charges and other | (6) | 6 |
Liability, ending balance | 23 | 28 |
Employee related cost | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 28 | 37 |
Restructuring charge | 10 | 29 |
Cash payments | (15) | (38) |
Restructuring Reserve, Period Increase (Decrease) | 0 | 0 |
Liability, ending balance | 23 | 28 |
Pension curtailment (gain) loss, net | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
Restructuring charge | 0 | (8) |
Cash payments | 0 | 0 |
Restructuring Reserve, Period Increase (Decrease) | 0 | 8 |
Liability, ending balance | 0 | 0 |
Asset related costs | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 0 |
Restructuring charge | 10 | 2 |
Cash payments | (4) | 0 |
Non-cash charges and other | (6) | (2) |
Liability, ending balance | 0 | 0 |
Other cost | ||
Restructuring Reserve [Roll Forward] | ||
Liability, beginning balance | 0 | 1 |
Restructuring charge | 7 | 6 |
Cash payments | (7) | (7) |
Non-cash charges and other | 0 | 0 |
Liability, ending balance | $ 0 | $ 0 |
Equity Narrative (Details)
Equity Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10.6 | 7.3 | 14 |
Common stock repurchased | $ 240 | $ 220 | |
2020 share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 1,500 | ||
Common stock repurchases (in shares) | 4 | ||
Common stock repurchased | $ 240 | ||
2017 Share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Common stock repurchases (in shares) | 4 | ||
Common stock repurchased | $ 220 |
Equity Reclassifications Out of
Equity Reclassifications Out of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
COGS | $ (9,621) | $ (9,043) | $ (9,197) |
SGA | (2,808) | (2,966) | (2,980) |
Interest expense | 223 | 281 | 284 |
Net experience (gain) loss, pre-tax | (2) | (3) | (5) |
Prior service cost | 0 | (1) | (1) |
Other (income) expense | (437) | (121) | (188) |
Total before tax | 1,966 | 1,601 | 1,305 |
Tax (expense) benefit | (474) | (323) | (321) |
Net income | 1,495 | 1,264 | 977 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net income | 12 | 7 | (6) |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before tax | 22 | 14 | 4 |
Tax (expense) benefit | (6) | (4) | (1) |
Net income | 16 | 10 | 3 |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on cash flow hedges | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense | 22 | 14 | 4 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of postretirement and postemployment benefits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net experience (gain) loss, pre-tax | (2) | (3) | (5) |
Prior service cost | 0 | (1) | (1) |
Total before tax | (2) | (4) | (6) |
Tax (expense) benefit | 0 | 1 | 1 |
Net income | (2) | (3) | (5) |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on available-for-sale securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total before tax | (2) | 0 | (4) |
Tax (expense) benefit | 0 | 0 | 0 |
Net income | (2) | 0 | (4) |
Corporate bonds | Reclassification out of Accumulated Other Comprehensive Income | (Gains) losses on available-for-sale securities | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other (income) expense | $ (2) | $ 0 | $ (4) |
Equity Summary of Accumulated O
Equity Summary of Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (1,681) | $ (1,668) |
Cash flow hedges — unrealized net gain (loss) | (13) | (57) |
Postretirement and postemployment benefits: | ||
Net experience gain (loss) | (1) | 2 |
Prior service credit (cost) | (26) | (12) |
Total accumulated other comprehensive income (loss) | ||
AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax | 0 | 3 |
Accumulated other comprehensive income (loss) | $ (1,721) | $ (1,732) |
Leases and Other Commitments Sc
Leases and Other Commitments Schedule of Supplemental Operating Lease Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 139 | $ 135 | $ 133 |
Leases and Other Commitments Su
Leases and Other Commitments Supplemental Operating Leases Information Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Operating lease, payments | $ 138 | $ 141 | $ 134 |
Right-of-use asset obtained in exchange for operating lease liability, new leases | 60 | 144 | 164 |
Right-of-use asset obtained in exchange for operating lease liability, modified leases | $ 53 | $ 84 | $ 44 |
Operating lease, weighted average remaining lease term | 8 years | 8 years | |
Operating lease, weighted average discount rate, percent | 2.70% | 2.60% |
Leases and Other Commitments Op
Leases and Other Commitments Operating Leases Future Maturities Table (Details) $ in Millions | Jan. 01, 2022USD ($) |
Leases [Abstract] | |
Operating leases, 2022 | $ 127 |
Operating leases, 2023 | 112 |
Operating leases, 2024 | 96 |
Operating leases, 2025 | 87 |
Operating leases, 2026 | 66 |
Operating leases, 2027 and beyond | 210 |
Total minimum payments | 698 |
Interest | (80) |
Present value of lease liabilities | $ 618 |
Leases and Other Commitments _2
Leases and Other Commitments Operating Leases Future Maturities Table Narrative (Details) $ in Millions | Jan. 01, 2022USD ($) |
Leases [Abstract] | |
Minimum lease payments for real-estate leases signed but not yet commenced | $ 52 |
Debt Components of Notes Payabl
Debt Components of Notes Payable (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Components of Notes Payable | ||
Notes payable | $ 137 | $ 102 |
U.S. Commercial Paper | ||
Components of Notes Payable | ||
Notes payable | $ 0 | $ 25 |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 0.20% |
Bank Borrowings | ||
Components of Notes Payable | ||
Notes payable | $ 137 | $ 77 |
Debt Schedule of Long-term Debt
Debt Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Debt Instrument [Line Items] | ||
Other long-term debt | $ 126 | $ 93 |
Long-term debt, including current maturities of long-term debt | 6,974 | 7,373 |
Long-term Debt, Current Maturities | (712) | (627) |
Long-term debt | 6,262 | 6,746 |
Long-term Debt, Excluding Current Maturities | 6,262 | 6,746 |
4.5% U.S. Dollar Notes Due 2046 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 638 | 638 |
7.45% U.S. Dollar Debentures Due 2031 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 622 | 621 |
2.10% U.S. Dollar Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 496 | 496 |
0.50% Euro Note Due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 338 | 0 |
4.30% U.S. Dollar Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 592 | 596 |
3.40% U.S. Dollar Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 596 | 596 |
3.25% U.S. Dollar Notes Due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 744 | 742 |
1.25% Euro Note Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 693 | 748 |
1.00% Euro Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 695 | 756 |
2.65% U.S. Dollar Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 545 | 542 |
2.75% U.S. Dollar Note Due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 207 | 204 |
.80% Euro Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 682 | 731 |
1.75% Euro Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | $ 610 |
Debt Debt Redemption Narrative
Debt Debt Redemption Narrative (Details) € in Millions, $ in Millions | Dec. 31, 2020USD ($) | Jan. 01, 2022USD ($) | Jan. 01, 2022EUR (€) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 20 | $ 223 | $ 281 | $ 284 | ||
Debt repurchase amount | $ 1,000 | |||||
3.25% U.S. Dollar Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.25% | |||||
Debt Instrument, Face Amount | $ 198 | |||||
3.125% U.S. Dollar Debentures Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 3.125% | |||||
Debt Instrument, Face Amount | $ 358 | |||||
1.750% Senior Notes Due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 1.75% | |||||
Debt Instrument, Face Amount | € | € 500 | |||||
0.50% Euro Note Due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 0.50% | |||||
Debt Instrument, Face Amount | € | € 300 | |||||
Proceeds from Issuance of Debt | € | € 298 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,100 | |
Multiemployer Plans, Withdrawal Obligation | 123 | $ 130 |
Line of Credit Facility, Remaining Borrowing Capacity | 3,000 | |
Principal repayments on long-term debt in 2022 | 712 | |
Principal repayments on long-term debt in 2023 | 793 | |
Principal repayments on long-term debt in 2024 | 702 | |
Principal repayments on long-term debt in 2025 | 691 | |
Principal repayments on long-term debt in 2026 | 759 | |
Principal repayments on long-term debt in 2027 and beyond | 3,341 | |
Five Year Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500 | |
Three Hundred Sixty Four Day Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | |
Expired Three Hundred Sixty Four Day Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000 | |
December 2021 Five Year Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500 | |
Euro Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750 | |
Debt Instrument, Term | 364 days | |
Line of Credit Facility, Maximum Month-end Outstanding Amount | $ 0 | |
European Swingline Loans [Member] | Five Year Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 |
Debt Standby Letters of Credit
Debt Standby Letters of Credit (Details) - Standby Letters of Credit $ in Millions | Jan. 01, 2022USD ($) |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 137 |
Secured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | 45 |
Unsecured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 92 |
Stock Compensation Equity based
Stock Compensation Equity based compensation programs (Details) | 12 Months Ended |
Jan. 01, 2022shares | |
2017 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized, but unissued | 16,000,000 |
Vesting period, years | 3 years |
Options granted remaining authorized, but unissued, shares | 14,000,000 |
Contractual term, years | 10 years |
Shares, Issued | 2 |
Shares Reduced From Remaining Available | 1 |
Shares Reduced From Outstanding Award | 1 |
2013 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period, years | 3 years |
Contractual term, 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. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Pre-tax compensation expense | $ 75 | $ 81 | $ 61 |
Related income tax benefit | 20 | $ 21 | $ 16 |
Non-vested stock-based compensation awards not yet recognized | $ 96 | ||
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. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Total cash received from option exercises and similar instruments | $ 63 | $ 112 | $ 64 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ (3) | $ 2 | $ (2) |
Stock Compensation Fair Value A
Stock Compensation Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted-average expected volatility | 20.00% | 18.00% | 18.00% |
Weighted-average expected term (years) | 6 years 8 months 12 days | 6 years 8 months 12 days | 6 years 7 months 6 days |
Weighted-average risk-free interest rate | 0.96% | 1.35% | 2.59% |
Dividend yield | 3.90% | 3.40% | 3.90% |
Weighted-average fair value of options granted | $ 6.39 | $ 7.34 | $ 6.78 |
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. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Outstanding, beginning of period - shares | 14 | 14 | 14 |
Granted - shares | 3 | 3 | 3 |
Exercised - shares | (1) | (2) | (1) |
Forfeitures and expirations - shares | (1) | (1) | (2) |
Outstanding, end of period - shares | 15 | 14 | 14 |
Exerciseable, end of period - shares | 10 | 10 | 10 |
Outstanding, beginning of period - weighted-average exercise price | $ 65 | $ 65 | $ 66 |
Granted - weighted-average exercise price | 58 | 65 | 57 |
Exercised - weighted-average exercise price | 56 | 59 | 56 |
Forfeitures and expirations - weighted-average exercise price | 66 | 68 | 67 |
Outstanding, end of period - weighted-average exercise price | 64 | 65 | 65 |
Exercisable, end of period - weighted-average exercise price | $ 66 | $ 66 | $ 65 |
Outstanding, end of period - weighted-average remaining contractual term (years) | 5 years 8 months 12 days | ||
Excerciseable, end of period - weighted-average remaining contractual term (years) | 4 years 4 months 24 days | ||
Outstanding, end of period - aggregate intrinsic value | $ 44 | ||
Exerciseable, end of period - aggregate intrinsic value | 22 | ||
Total intrinsic value of options exercised | $ 6 | $ 17 | $ 7 |
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. 26, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Jan. 01, 2022 | |
2021 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 51 | ||||
2020 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | 39 | ||||
2019 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum future value | $ 26 | ||||
2021 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | ||||
Vesting period, years | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 58 | ||||
Performance Share Target Grant | 399,000 | ||||
2020 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | ||||
Vesting period, years | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 66 | ||||
Performance Share Target Grant | 308,000 | ||||
2019 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Shares Issued On Vesting Date Minimum | 0.00% | ||||
Performance Shares Issued On Vesting Date Maximum | 200.00% | ||||
Vesting period, years | 3 years | ||||
Performance Award Condition Time Period | 3 years | ||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 73 | ||||
Performance Share Target Grant | 204,000 | ||||
2018 Performance share award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
2018 Performance share award settlement in terms of original target | 100.00% | ||||
2018 Performance share award settlement in dollars | $ 8 |
Stock Compensation Summary of r
Stock Compensation Summary of restricted stock activity (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-vested, beginning of year - shares | 1,736 | 1,901 | 1,708 |
Granted - shares | 727 | 596 | 888 |
Vested - shares | (489) | (504) | (469) |
Forfeited - shares | (188) | (257) | (226) |
Non-vested, end of year - shares | 1,786 | 1,736 | 1,901 |
Non-vested, beginning of year - weighted-average grant-date fair value | $ 61 | $ 61 | $ 65 |
Granted - weighted average grant-date fair value | 58 | 65 | 55 |
Vested - weighted-average grant-date fair value | 63 | 65 | 68 |
Forfeited - weighted-average grant-date fair value | 60 | 58 | 62 |
Non-vested, end of year - weighted-average grant-date fair value | $ 60 | $ 61 | $ 61 |
Total fair value of restricted stock and restricted stock units vested during period | $ 29 | $ 34 | $ 27 |
Pension Benefits Pension Benefi
Pension Benefits Pension Benefits Narrative (Details) - Pension $ in Millions | Jul. 28, 2019USD ($) | Oct. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jan. 02, 2021USD ($) |
United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 174 | ||||
Curtailment gain | $ 11 | $ 7 | |||
Number of retired participants accepting settlement of defined benefit pension plan obligations | 8,000 | ||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 453 | ||||
UNITED KINGDOM | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Buy-in annuity contract | $ 268 |
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. 01, 2022 | Jan. 02, 2021 | |
Amounts Recognized in Balance Sheet | ||
Other Assets | $ 448 | $ 324 |
Other liabilities | (706) | (769) |
Pension | ||
Change in Benefit Obligation [Roll Forward] | ||
Actuarial (gain) loss | 12 | |
Global plans | Pension | ||
Change in Benefit Obligation [Roll Forward] | ||
Beginning of Year | 5,675 | 5,654 |
Service Cost | 36 | 37 |
Interest Cost | 98 | 130 |
Plan participants' contributions | 1 | 1 |
Plan Amendments | 18 | 22 |
Actuarial (gain) loss | (130) | 499 |
Benefits paid | (423) | (292) |
Curtailments and special termination benefits | (1) | (15) |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 0 | (453) |
Foreign Currency Adjustments | (38) | 92 |
End of Year | 5,236 | 5,675 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value, Beginning of Year | 5,211 | 5,170 |
Actual Return on Plan Assets | 184 | 656 |
Employer Contributions | 4 | 8 |
Plan participants' contributions | 1 | 1 |
Benefits Paid, Plan Assets | (397) | (269) |
Settlements | 0 | (453) |
Other | 0 | (8) |
Currency translation | (44) | 106 |
Fair Value, End of Year | 4,959 | 5,211 |
Funded Status | (277) | (464) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | 61 | 51 |
Net Amount Recognized | 61 | 51 |
Amounts Recognized in Balance Sheet | ||
Other Assets | 448 | 324 |
Other Current Liabilities | (19) | (19) |
Other liabilities | (706) | (769) |
Net Amount Recognized | (277) | (464) |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 5,200 | $ 5,600 |
Pension Benefits Accumulated Be
Pension Benefits Accumulated Benefit Obligations (Details) - Global plans - Pension - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 3,623 | $ 3,937 |
Accumulated benefit obligation | 3,610 | 3,921 |
Fair value of plan assets | $ 2,906 | $ 3,177 |
Pension Benefits Projected Bene
Pension Benefits Projected Benefit Obligations (Details) - Pension - Global Plans [Member] - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 3,707 | $ 4,035 |
Projected benefit obligation, accumulated benefit obligation | 3,669 | 3,988 |
Projected benefit obligation, fair value of plan assets | $ 2,984 | $ 3,246 |
Pension Benefits Components of
Pension Benefits Components of Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ (165) | $ 31 | $ 117 |
Global plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) expense | 41 | 42 | 39 |
Global plans | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 36 | 37 | |
Interest Cost | 98 | 130 | |
Net periodic benefit cost | (171) | 26 | 110 |
Curtailment and special termination benefits | (1) | (15) | (13) |
Pension (income) expense | (172) | 11 | 97 |
Global plans | COGS and SGA | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 36 | 37 | 36 |
Global plans | OIE | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest Cost | 98 | 130 | 172 |
Expected Return on Plan Assets | (301) | (340) | (340) |
Amortization of Unrecognized Prior Service Cost (Credit) | 8 | 7 | 7 |
Other | 0 | 8 | 0 |
Recognized net (gain) loss | (12) | 184 | 235 |
Foreign and U.S. multiemployer defined contribution plan | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 7 | $ 20 | $ 20 |
Pension Benefits Assumptions (D
Pension Benefits Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 2.60% | 2.20% | 2.90% |
Long-term rate of compensation increase | 3.50% | 3.40% | 3.40% |
Actuarial (gain) loss | $ 12 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rates of return | 25th | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected rates of return | 75th | ||
Global Plans [Member] | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 2.30% | 2.80% | 3.70% |
Long-term rate of compensation increase | 3.40% | 3.40% | 4.00% |
Long-term rate of return on plan assets | 6.00% | 6.80% | 7.30% |
Defined Benefit Plan, Benefit Obligation | $ 5,236 | $ 5,675 | $ 5,654 |
Actuarial (gain) loss | $ (130) | 499 | |
United States | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of consolidated pension and postretirement benefit plan assets | 69.00% | ||
Long-term inflation assumption | 2.50% | ||
Active management premium | 0.75% | ||
Expected rate of return on foreign plan assets | 6.25% | ||
Expected rates of return | 65th percentile | ||
Mortality rate | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 15 |
Pension Benefits Plan Assets (D
Pension Benefits Plan Assets (Details) - Global plans - Pension - USD ($) $ in Millions | 12 Months Ended | |||||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 4,959 | $ 5,211 | $ 5,170 | |||
Net Asset Value Excluded From Fair Value By Input | 2,507 | [1] | 2,791 | [2] | ||
Expected contribution by Company | 3 | |||||
Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 354 | 360 | ||||
Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 1,829 | 1,780 | ||||
Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 269 | 280 | ||||
Cash and Cash Equivalents | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 31 | 42 | ||||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 3 | [2] | ||
Cash and Cash Equivalents | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 36 | 35 | ||||
Cash and Cash Equivalents | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | (5) | 4 | ||||
Cash and Cash Equivalents | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Corporate stock, common | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 318 | 325 | ||||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | ||
Corporate stock, common | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 318 | 325 | ||||
Corporate stock, common | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Corporate stock, common | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 0 | $ 0 | ||||
Domestic Corporate Common Stock | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of consolidated plan assets represented by investment in Company comon stock | 1.20% | 1.10% | ||||
Mutual Fund International Equity | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 2 | |||||
Net Asset Value Excluded From Fair Value By Input | [2] | 2 | ||||
Mutual Fund International Equity | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | |||||
Mutual Fund International Equity | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | |||||
Mutual Fund International Equity | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | |||||
Mutual Funds Domestic Debt | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 51 | 5 | ||||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | ||
Mutual Funds Domestic Debt | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Mutual Funds Domestic Debt | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 51 | 5 | ||||
Mutual Funds Domestic Debt | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Collective Trusts Domestic Equity | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 1,034 | 1,508 | ||||
Net Asset Value Excluded From Fair Value By Input | 1,034 | [1] | 1,508 | [2] | ||
Collective Trusts Domestic Equity | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Collective Trusts Domestic Equity | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Collective Trusts Domestic Equity | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Collective Trusts Other International Debt | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 1,076 | 963 | ||||
Net Asset Value Excluded From Fair Value By Input | 477 | [1] | 415 | [2] | ||
Collective Trusts Other International Debt | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Collective Trusts Other International Debt | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 599 | 548 | ||||
Collective Trusts Other International Debt | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Limited Partnership | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 207 | 292 | ||||
Net Asset Value Excluded From Fair Value By Input | 207 | [1] | 292 | [2] | ||
Limited Partnership | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Limited Partnership | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Limited Partnership | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Bonds, corporate | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 766 | 361 | ||||
Net Asset Value Excluded From Fair Value By Input | 370 | [1] | 141 | [2] | ||
Bonds, corporate | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Bonds, corporate | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 396 | 220 | ||||
Bonds, corporate | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Bonds, government | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 597 | 861 | ||||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | ||
Bonds, government | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Bonds, government | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 597 | 861 | ||||
Bonds, government | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Bonds, other | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 87 | 64 | ||||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | ||
Bonds, other | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Bonds, other | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 87 | 64 | ||||
Bonds, other | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Real estate | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 416 | 421 | ||||
Net Asset Value Excluded From Fair Value By Input | 416 | [1] | 421 | [2] | ||
Real estate | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Real estate | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Real estate | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Other | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 107 | 87 | ||||
Net Asset Value Excluded From Fair Value By Input | 3 | [1] | 9 | [2] | ||
Other | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Other | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 104 | 78 | ||||
Other | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 0 | 0 | ||||
Debt Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted-average target asset allocation | 31.00% | |||||
Equity Securities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted-average target asset allocation | 29.00% | |||||
Real Estate And Other | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted-average target asset allocation | 40.00% | |||||
Buy-in annuity contract | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 269 | 280 | ||||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | ||
Buy-in annuity contract | Level 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Buy-in annuity contract | Level 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | 0 | 0 | ||||
Buy-in annuity contract | Level 3 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair Value of Plan Assets | $ 269 | $ 280 | $ 0 | |||
[1] | Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. | |||||
[2] | Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Pension Benefits Level 3 Gains
Pension Benefits Level 3 Gains and Losses (Details) - Pension - Global Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | $ 5,211 | $ 5,170 |
Currency translation | (44) | 106 |
Fair Value, End of Year | 4,959 | 5,211 |
Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 280 | |
Fair Value, End of Year | 269 | 280 |
Other Investments [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 87 | |
Fair Value, End of Year | 107 | 87 |
Other Investments [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 0 | |
Fair Value, End of Year | 0 | 0 |
Buy-in annuity contract | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 280 | |
Fair Value, End of Year | 269 | 280 |
Buy-in annuity contract | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 280 | 0 |
Purchases | 268 | |
Realized gain and unrealized gain (loss) | (9) | 4 |
Currency translation | (2) | 8 |
Fair Value, End of Year | $ 269 | $ 280 |
Pension Benefits Benefit Paymen
Pension Benefits Benefit Payments (Details) - Global plans - Pension $ in Millions | Jan. 01, 2022USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2022 | $ 299 |
Benefit payments in 2023 | 310 |
Benefit payments in 2024 | 315 |
Benefit payments in 2025 | 310 |
Benefit payments in 2026 | 308 |
Benefit payments in 2027 through 2031 | $ 1,534 |
Nonpension Postretirement and_3
Nonpension Postretirement and Postemployment Benefits Change in Projected Benefit Obligations, Plan Assets, and Funded Status, Postretirement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | $ 448 | $ 324 | |
Other Liabilities | (32) | (34) | |
Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | 152 | ||
U.S. and Canada | Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Beginning of Year | 1,157 | 1,116 | |
Service Cost | 13 | 13 | $ 15 |
Interest Cost | 20 | 31 | 37 |
Actuarial (gain) loss | (68) | 55 | |
Benefits paid | (57) | (58) | |
End of Year | 1,065 | 1,157 | 1,116 |
Change in plan assets | |||
Fair Value, Beginning of Year | 1,491 | 1,364 | |
Actual Return on Plan Assets | 175 | 178 | |
Employer Contributions | 16 | 24 | |
Benefits Paid, Plan Assets | (74) | (75) | |
Fair Value, End of Year | 1,608 | 1,491 | $ 1,364 |
Funded Status | 543 | 334 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | 577 | 369 | |
Other Current Liabilities | (2) | (1) | |
Other Liabilities | (32) | (34) | |
Net Amount Recognized | 543 | 334 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | (41) | (50) | |
Net Amount Recognized | $ (41) | $ (50) |
Nonpension Postretirement and_4
Nonpension Postretirement and Postemployment Benefits Accumulated Benefit Obligations (Details) - Nonpension postretirement - U.S. and Canada - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 34 | $ 35 |
Fair value of plan assets | $ 0 | $ 0 |
Nonpension Postretirement and_5
Nonpension Postretirement and Postemployment Benefits Components of Postretirement Expense (Details) - Nonpension postretirement - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ (207) | $ (75) | $ (175) |
U.S. and Canada defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 13 | 13 | 15 |
Interest Cost | 20 | 31 | 37 |
Expected Return on Plan Assets | (92) | (94) | (86) |
Amortization of Unrecognized Prior Service Cost (Credit) | (9) | (9) | (9) |
Recognized net (gain) loss | (152) | (29) | (137) |
Net periodic benefit cost | (220) | (88) | (180) |
Curtailment and special termination benefits | 0 | 0 | (6) |
Postretirement Benefit Expense | (220) | (88) | (186) |
U.S. and Canada defined contribution plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ 13 | $ 13 | $ 11 |
Nonpension Postretirement and_6
Nonpension Postretirement and Postemployment Benefits Assumptions (Details) - Nonpension postretirement | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligation | 2.90% | 2.50% | 3.30% |
U.S. and Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, annual net periodic cost | 2.50% | 3.30% | 4.00% |
Long-term rate of return on plan assets | 6.30% | 7.00% | 7.30% |
Nonpension Postretirement and_7
Nonpension Postretirement and Postemployment Benefits Health Care Cost Trend Rates (Details) - Nonpension postretirement - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed healthcare cost trend rate for 2022 | 5.25% | |
Annual change in assumed healthcare cost trend rate | 0.25% | |
Assumed health care cost trend rate by 2025 and thereafter | 4.50% | |
Actuarial (gain) loss | $ 152 | |
U.S. and Canada | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial (gain) loss | $ (68) | $ 55 |
Nonpension Postretirement and_8
Nonpension Postretirement and Postemployment Benefits Plan Assets (Details) - U.S. and Canada - Nonpension postretirement - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | $ 1,608 | $ 1,491 | $ 1,364 | ||
Net Asset Value Excluded From Fair Value By Input | 850 | [1] | 893 | [2] | |
Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 264 | 264 | |||
Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 494 | 334 | |||
Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Cash and Cash Equivalents | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 3 | 6 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Cash and Cash Equivalents | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 1 | 3 | |||
Cash and Cash Equivalents | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 2 | 3 | |||
Cash and Cash Equivalents | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Corporate stock, common | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 263 | 261 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Corporate stock, common | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 263 | 261 | |||
Corporate stock, common | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Corporate stock, common | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Mutual Funds Domestic Equity | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 39 | 30 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Mutual Funds Domestic Equity | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 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, Plan Assets, Amount | 39 | 30 | |||
Mutual Funds Domestic Equity | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Mutual Funds Domestic Debt | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 94 | 54 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Mutual Funds Domestic Debt | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 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, Plan Assets, Amount | 94 | 54 | |||
Mutual Funds Domestic Debt | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Collective Trusts Domestic Equity | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 616 | 669 | |||
Net Asset Value Excluded From Fair Value By Input | 616 | [1] | 669 | [2] | |
Collective Trusts Domestic Equity | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 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, Plan Assets, Amount | 0 | 0 | |||
Collective Trusts Domestic Equity | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Limited Partnership | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 132 | 135 | |||
Net Asset Value Excluded From Fair Value By Input | 132 | [1] | 135 | [2] | |
Limited Partnership | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Limited Partnership | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Limited Partnership | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Bonds, corporate | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 247 | 143 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Bonds, corporate | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Bonds, corporate | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 247 | 143 | |||
Bonds, corporate | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Bonds, government | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 99 | 96 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Bonds, government | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Bonds, government | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 99 | 96 | |||
Bonds, government | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Bonds, other | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 13 | 8 | |||
Net Asset Value Excluded From Fair Value By Input | 0 | [1] | 0 | [2] | |
Bonds, other | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Bonds, other | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 13 | 8 | |||
Bonds, other | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Real Estate | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 102 | 89 | |||
Net Asset Value Excluded From Fair Value By Input | 102 | [1] | 89 | [2] | |
Real Estate | Level 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Real Estate | Level 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |||
Real Estate | Level 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 | |||
[1] | Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. | ||||
[2] | Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Nonpension Postretirement and_9
Nonpension Postretirement and Postemployment Benefits VEBA Trusts (Details) - U.S. and Canada $ in Millions | Jan. 01, 2022USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected contribution by Company | $ 17 |
Nonpension postretirement | Debt Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 33.00% |
Nonpension postretirement | Equity Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 60.00% |
Nonpension postretirement | Real Estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 7.00% |
Nonpension Postretirement an_10
Nonpension Postretirement and Postemployment Benefits Change in Projected Benefit Obligations, Plan Assets, and Funded Status, Postemployment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Other Assets | $ 448 | $ 324 |
Amounts Recognized in Balance Sheet | ||
Other Liabilities | (32) | (34) |
Postemployment | ||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Beginning of Year | 48 | 48 |
Service Cost | 3 | 3 |
Interest Cost | 1 | 1 |
Actuarial (gain) loss | 1 | 0 |
Benefits paid | (5) | (4) |
End of Year | 48 | 48 |
Funded Status | (48) | (48) |
Amounts Recognized in Balance Sheet | ||
Other Current Liabilities | (5) | (6) |
Other Liabilities | (43) | (42) |
Net Amount Recognized | (48) | (48) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | 1 | 2 |
Net experience loss | (14) | (18) |
Net Amount Recognized | $ (13) | $ (16) |
Nonpension Postretirement an_11
Nonpension Postretirement and Postemployment Benefits Components of Postretirement Expense, Postemployment (Details) - Postemployment - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 3 | $ 3 | |
Interest Cost | 1 | 1 | |
Global plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 3 | 2 | $ 3 |
Interest Cost | 1 | 1 | 2 |
Amortization of Unrecognized Prior Service Cost (Credit) | 1 | 1 | 1 |
Recognized net (gain) loss | (2) | (3) | (5) |
Net periodic benefit cost | 3 | 1 | 1 |
Settlement cost | (1) | (1) | (3) |
Postemployment Benefits, Period Expense | $ 2 | $ 0 | $ (2) |
Nonpension Postretirement an_12
Nonpension Postretirement and Postemployment Benefits Benefit Payments (Details) $ in Millions | Jan. 01, 2022USD ($) |
U.S. and Canada | Nonpension postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2022 | $ 64 |
Benefit payments in 2023 | 64 |
Benefit payments in 2024 | 64 |
Benefit payments in 2025 | 64 |
Benefit payments in 2026 | 64 |
Benefit payments in 2027 through 2031 | 312 |
Global plans | Postemployment | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2022 | 5 |
Benefit payments in 2023 | 7 |
Benefit payments in 2024 | 6 |
Benefit payments in 2025 | 5 |
Benefit payments in 2026 | 5 |
Benefit payments in 2027 through 2031 | $ 21 |
Multipemployer Pension and Po_2
Multipemployer Pension and Postretirement Plans Multiemployer Pension Plans Trusts Funds Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Multiemployer Plans [Line Items] | |||
Multiemployer withdrawal obligation annual cash obligation | $ 8 | ||
Multiemployer Plans, Withdrawal Obligation | $ 123 | $ 130 | |
Multiemployer plan withdrawal obligation term | 20 years | ||
Multiemployer withdrawal liability payments | $ 10 | 21 | $ 8 |
Pension | |||
Multiemployer Plans [Line Items] | |||
Contributions | 7 | 7 | 9 |
Project K | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan withdrawal expense | $ 0 | $ (5) | $ 132 |
Multipemployer Pension and Po_3
Multipemployer Pension and Postretirement Plans Multiemployer Postretirement Plans Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Nonpension postretirement | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions | $ 13 | $ 13 | $ 11 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Oct. 02, 2021 | Sep. 26, 2020 | Dec. 29, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||||||
Effective income tax rate | 24.10% | 20.20% | 24.60% | ||||||
Income tax expense | $ 474 | $ 323 | $ 321 | ||||||
Out-of-period adjustment - increase tax expense decrease deferred tax asset | $ 39 | ||||||||
Pension contributions | 20 | 32 | 28 | ||||||
Undistributed earnings of foreign subsidiaries | 1,000 | ||||||||
Amount of unrecognized deferred tax liability on undistributed earnings of foreign subsidiaries | 28 | ||||||||
Tax benefits of carryforwards | 329 | 363 | 329 | ||||||
Valuation allowance | 192 | 248 | 192 | ||||||
Income taxes paid | $ 255 | $ 365 | 281 | 537 | |||||
U.S percentage of tax provision | 50.00% | ||||||||
Projected additions to unrecognized tax benefits related to ongoing intercompany pricing activity | $ 4 | ||||||||
Unrecognized tax benefits that would affect the Company's effective tax rate in future periods | 43 | ||||||||
Deferred Tax Liabilities, Gross | 902 | 961 | 902 | ||||||
Deferred tax liabilities | 308 | 507 | 308 | ||||||
Tax reserves released as a result of finalization of an IRS tax examination | $ 32 | $ 32 | |||||||
Deferred Tax Assets, Valuation Allowance | $ 192 | $ 146 | 248 | $ 192 | $ 146 | $ 20 | $ 166 | ||
Expire in 5 Years or Less | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax benefits of carryforwards | 23 | ||||||||
Expire in 2027 and later | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax benefits of carryforwards | 75 | ||||||||
Do Not Expire | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax benefits of carryforwards | 265 | ||||||||
UNITED KINGDOM | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income tax expense | $ 23 | ||||||||
UNITED KINGDOM | Minimum | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Effective income tax rate | 19.00% | ||||||||
UNITED KINGDOM | Maximum | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Effective income tax rate | 25.00% | ||||||||
Current liabilities | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Increase in Unrecognized Tax Benefits is Reasonably Possible | $ 16 |
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. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, United States | $ 1,158 | $ 1,018 | $ 938 |
Income before income taxes, Foreign | 808 | 583 | 367 |
Income before income taxes | 1,966 | 1,601 | 1,305 |
Income taxes, currently payable, Federal | 188 | 129 | 345 |
Income taxes, currently payable, State | 44 | 26 | 52 |
Income taxes, currently payable, Foreign | 117 | 100 | 77 |
Income taxes, currently payable | 349 | 255 | 474 |
Income taxes, deferred, Federal | 40 | 56 | (124) |
Income taxes, deferred, State | 4 | 9 | (29) |
Income taxes, deferred, Foreign | 81 | 3 | 0 |
Income taxes, deferred | 125 | 68 | (153) |
Total income taxes | $ 474 | $ 323 | $ 321 |
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. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% |
Foreign rates varying from U.S. statutory rate | (1.60%) | (2.40%) | (2.50%) |
State income taxes, net of federal benefit | 1.90% | 1.80% | 1.30% |
Cost (benefit) of remitted and unremitted foreign earnings | 0.60% | 1.00% | 0.80% |
Revaluation of investment in foreign subsidiary | 0.00% | 0.00% | 2.50% |
Net change in valuation allowance | 2.70% | 1.40% | (1.60%) |
Statutory rate changes, deferred tax impact | 0.70% | 0.20% | 0.30% |
U.S. deemed repatriation tax | 0.00% | (2.00%) | 0.00% |
Divestiture | 0.00% | 0.00% | 2.90% |
Out-of-period adjustment | 0.00% | 0.00% | 3.00% |
Other | (1.20%) | (0.80%) | (3.10%) |
Effective Income Tax Rate Reconciliation, Percent | 24.10% | 20.20% | 24.60% |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Oct. 02, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Income Tax [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 0 | $ 7 | |||
Deferred Tax Liabilities Us State Income Taxes | 11 | 0 | |||
Deferred Tax Assets Advertising And Promotion Related | 14 | 13 | |||
Deferred Tax Assets Wages And Payroll Taxes | 27 | 26 | |||
Deferred Tax Assets, Inventory | 16 | 17 | |||
Deferred Tax Assets, Tax Deferred Expense, Employee Benefits | 19 | 118 | |||
Tax benefits of carryforwards | 363 | 329 | |||
Deferred Tax Assets, Hedging Transactions | 13 | 49 | |||
Deferred Tax Liabilities, Hedging Transactions | 0 | 0 | |||
Deferred Tax Liabilities, Property, Plant and Equipment | 264 | 234 | |||
Deferred Tax Liabilities, Operating Lease Right-of-Use Assets | 146 | 141 | |||
Deferred Tax Asset, Operating Lease Liabilities | 144 | 136 | |||
Deferred Tax Liabilities, Intangible Assets | 540 | 527 | |||
Deferred Tax Assets, Tax Deferred Expense, Deferred Compensation | 19 | 18 | |||
Deferred Tax Assets, Tax Deferred Expense, Stock Options | 33 | 32 | |||
Deferred Tax Assets, Other | 54 | 41 | |||
Deferred Tax Assets, Gross | 702 | 786 | |||
Deferred Tax Liabilities, Gross | 961 | 902 | |||
Deferred Tax Liabilities, Net | (507) | (308) | |||
Deferred Tax Assets, Valuation Allowance | (248) | $ (20) | (192) | $ (146) | $ (166) |
Deferred Tax Assets, Net of Valuation Allowance | 454 | 594 | |||
Other Assets [Member] | |||||
Deferred Income Tax [Line Items] | |||||
Deferred Tax Assets, Net | 215 | 254 | |||
Other liabilities | |||||
Deferred Income Tax [Line Items] | |||||
Deferred Tax Liabilities, Net | $ (722) | $ (562) |
Income Taxes Change in Valuatio
Income Taxes Change in Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||||
Income Tax Disclosure [Abstract] | ||||||
Balance at beginning of year | $ 192 | $ 146 | $ 166 | |||
Additions charged to income tax expense | 59 | [1] | 62 | [1] | 25 | |
Reductions credited to income tax expense | (6) | (24) | (47) | [2] | ||
Acquisition of noncontrolling interest | 13 | 0 | 0 | |||
Currency translation adjustments | (10) | 8 | 2 | |||
Balance at end of year | 248 | 192 | 146 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 20 | $ 41 | $ (32) | |||
[1] | During 2021, the Company increased the valuation allowance $20 million to fully reserve for net deferred tax assets of a foreign subsidiary. During 2020, the Company increased the valuation allowance by $41 million related to the revaluation of its investment in a foreign subsidiary. | |||||
[2] | During 2019, the Company decreased the valuation allowance by $32 million related to the revaluation of its investment in a foreign subsidiary. |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Balance at beginning of year | $ 65 | $ 90 | $ 97 | ||
Additions, current year | 5 | 5 | 5 | ||
Additions, prior year | 5 | 8 | 4 | ||
Reductions, prior year | (13) | (35) | (14) | ||
Settlements, decreases | (9) | (2) | (1) | ||
Lapse in statute of limitations | (3) | (1) | (1) | ||
Balance at end of year | 50 | 65 | 90 | ||
Reduction to tax interest accrual | 11 | ||||
Income tax examination interest payments | 2 | 1 | |||
Tax reserves released as a result of finalization of an IRS tax examination | $ 32 | $ 32 | |||
Income Tax Examination, Interest Expense | (4) | 3 | |||
Accrued tax-related interest and penalties | 7 | 13 | 11 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (20) | $ (41) | $ 32 |
Derivative Instruments and Fa_3
Derivative Instruments and Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative [Line Items] | ||
Concentration of credit risk, maximum exposure | $ 24 | |
Five largest customers percentage of consolidated trade receivables | 26.00% | |
Long-term debt, including current maturities of long-term debt | $ 6,974 | $ 7,373 |
Net Investment Hedging [Member] | ||
Derivative [Line Items] | ||
Long-term debt, including current maturities of long-term debt | $ 2,400 | $ 2,800 |
Derivative Instruments and Fa_4
Derivative Instruments and Fair Value Measurements Total Notional Amounts of the Company's Derivative Instruments (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Derivative [Line Items] | ||
Notional amount of derivatives | $ 7,347 | $ 7,213 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 2,828 | 2,856 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 1,343 | 1,411 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 2,816 | 2,632 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 360 | $ 314 |
Derivative Instruments and Fa_5
Derivative Instruments and Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative [Line Items] | |||
Fair Value Of Related Hedge Portion Of Long Term Debt | $ 1,200 | $ 800 | |
Designated as hedging instrument | |||
Derivative [Line Items] | |||
Assets | 65 | 90 | |
Liabilities | (14) | (37) | |
Designated as hedging instrument | Level 1 [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Liabilities | 0 | 0 | |
Designated as hedging instrument | Level 2 [Member] | |||
Derivative [Line Items] | |||
Assets | 65 | 90 | |
Liabilities | (14) | (37) | |
Designated as hedging instrument | Cross-currency contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 32 | 14 | |
Designated as hedging instrument | Cross-currency contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 15 | 16 | |
Designated as hedging instrument | Cross-currency contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (2) | (13) | |
Designated as hedging instrument | Cross-currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (7) | (21) | |
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as hedging instrument | Cross-currency contracts | Level 1 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 32 | 14 | |
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 15 | 16 | |
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (2) | (13) | |
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (7) | (21) | |
Designated as hedging instrument | Interest rate contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 10 | 0 |
Designated as hedging instrument | Interest rate contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 8 | 60 |
Designated as hedging instrument | Interest rate contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | (1) | (3) |
Designated as hedging instrument | Interest rate contracts | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | (4) | 0 |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as hedging instrument | Interest rate contracts | Level 1 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 10 | 0 |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | [1] | 8 | 60 |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | (1) | (3) |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | [1] | (4) | 0 |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Assets | 32 | 74 | |
Liabilities | (45) | (106) | |
Not Designated as Hedging Instrument [Member] | Level 1 [Member] | |||
Derivative [Line Items] | |||
Assets | 5 | 9 | |
Liabilities | (6) | (1) | |
Not Designated as Hedging Instrument [Member] | Level 2 [Member] | |||
Derivative [Line Items] | |||
Assets | 27 | 65 | |
Liabilities | (39) | (105) | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 18 | 48 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 5 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (20) | (73) | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (6) | (4) | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 1 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 18 | 48 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 5 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (20) | (73) | |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (6) | (4) | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 4 | 4 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 13 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (6) | (6) | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (7) | (22) | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 1 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 4 | 4 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 13 | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (6) | (6) | |
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other liabilities | |||
Derivative [Line Items] | |||
Liabilities | (7) | (22) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 5 | 9 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (6) | (1) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 5 | 9 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other current liabilities | |||
Derivative [Line Items] | |||
Liabilities | (6) | (1) | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Assets | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 2 [Member] | Other current liabilities | |||
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 $1.2 billion and $0.8 billion as of January 1, 2022 and January 2, 2021, respectively. |
Derivative Instruments and Fa_6
Derivative Instruments and Fair Value Measurements Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivatives, Fair Value [Line Items] | |||
Long-term debt | $ 6,262 | $ 6,746 | |
Carrying amount of hedged liability | Fair value hedges | Interest rate contracts | Designated as hedging instrument | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt | 2,903 | 2,568 | |
Cumulative fair value adjustment | Fair value hedges | Interest rate contracts | Designated as hedging instrument | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt | [1] | 12 | 25 |
Cumulative fair value adjustment | Discontinued hedging | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Long-term debt | $ 13 | $ 16 | |
[1] | The hedged long-term debt includes $13 million and $16 million of hedging adjustment on discontinued hedging relationships as of January 1, 2022 and January 2, 2021, respectively. |
Derivative Instruments and Fa_7
Derivative Instruments and Fair Value Measurements Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net amount of assets presented in the balance sheet | $ 97 | $ 164 |
Financial instruments, gross amount not offset in balance sheet | (47) | (116) |
Derivative, Collateral, Obligation to Return Cash | 8 | 0 |
Net amount, assets derivatives | 58 | 48 |
Net amounts of liabilities presented in balance sheet | (59) | (143) |
Financial instruments, gross amount not offset in balance sheet | 47 | 116 |
Cash collateral received, gross amount not offset in balance sheet | 12 | 5 |
Net amount, liabilities derivatives | $ 0 | $ (22) |
Derivative Instruments and Fa_8
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. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 17 | ||
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 236 | $ (329) | $ 66 |
Gain (loss) excluded from assessment of hedge effectiveness | 26 | 34 | 34 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 97 | 12 | (18) |
Foreign currency exchange contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (21) | 11 | (16) |
Foreign currency exchange contracts | SGA | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 13 | (1) | (2) |
Foreign currency exchange contracts | Other Income (Expense), Net | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (3) | (6) | (4) |
Foreign Currency Denominated Long Term Debt | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 175 | (236) | 60 |
Gain (loss) excluded from assessment of hedge effectiveness | 0 | 0 | 0 |
Cross-currency contracts | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | 61 | (93) | 6 |
Gain (loss) excluded from assessment of hedge effectiveness | 26 | 34 | 34 |
Interest rate contracts | Interest expense | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 1 | 2 | 0 |
Commodity contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ 107 | $ 6 | $ 4 |
Derivative Instruments and Fa_9
Derivative Instruments and Fair Value Measurements Schedule of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense | $ 20 | $ 223 | $ 281 | $ 284 |
Cost of goods sold | 9,621 | 9,043 | 9,197 | |
Other income (expense), net | 437 | 121 | 188 | |
Interest rate contracts | Interest expense | Designated as hedging instrument | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 14 | (7) | (33) | |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (12) | 7 | 37 | |
Interest rate contracts | Interest expense | Designated as hedging instrument | Cash Flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | $ (22) | $ (14) | $ (4) |
Derivative Instruments and F_10
Derivative Instruments and Fair Value Measurements Marketable Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Marketable Securities [Line Items] | |||
Purchases of marketable securities | $ 0 | $ 250 | $ 0 |
Sales of marketable securities | $ 0 | 250 | $ 0 |
Bonds, other | |||
Marketable Securities [Line Items] | |||
Purchases of marketable securities | 250 | ||
Sales of marketable securities | 250 | ||
Bonds, corporate | Other Income (Expense), Net | |||
Marketable Securities [Line Items] | |||
Marketable Securities, Realized Gain (Loss) | $ 1 |
Derivative Instruments and F_11
Derivative Instruments and Fair Value Measurements Schedule of Carrying and Market Values of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, cost | $ 52 | $ 62 | |
Available-for-sale securities unrealized gain (loss) | 0 | 3 | |
Available-for-sale securities, market value | 52 | 65 | |
Sales of available-for-sale securities | 72 | 19 | $ 83 |
Payments to Acquire Debt Securities, Available-for-sale | 61 | $ 81 | $ 18 |
Level 2 [Member] | Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sales of available-for-sale securities | 72 | ||
Payments to Acquire Debt Securities, Available-for-sale | 61 | ||
Other Income (Expense), Net | Level 2 [Member] | Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gain on sale of available-for-sale securities | $ 2 |
Derivative Instruments and F_12
Derivative Instruments and Fair Value Measurements Equity Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investment fair value adjustment, mark-to-market gain | $ 20 | |
Level 2 [Member] | Other Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Method Investments, Fair Value Disclosure | $ 40 | $ 20 |
Derivative Instruments and F_13
Derivative Instruments and Fair Value Measurements Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 6,900 | $ 7,700 |
Long-term debt, carrying value | $ 6,262 | $ 6,746 |
Reportable Segments Narrative (
Reportable Segments Narrative (Details) $ in Millions | Jul. 28, 2019USD ($) | Jan. 01, 2022USD ($) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Operating Segments | 4 | ||||
Net sales | $ 14,181 | $ 13,770 | $ 13,578 | ||
Operating profit | 1,752 | 1,761 | 1,401 | ||
Proceeds from divestiture of businesses | 0 | (7) | 1,332 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 7,646 | $ 7,821 | $ 7,885 | ||
Walmart Stores Inc [Member] | Customer Concentration Risk [Member] | Sales [Member] | United States | Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 19.00% | 19.00% | 19.00% | ||
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 8,174 | $ 8,361 | $ 8,390 | ||
Operating profit | $ 1,329 | $ 1,473 | 1,215 | [1] | |
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | |||||
Segment Reporting Information [Line Items] | |||||
Proceeds from divestiture of businesses | $ 1,300 | ||||
Net assets | 1,300 | ||||
Cookies, fruit and fruit flavored snacks, pie crusts and ice cream cones businesses | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 562 | ||||
Proceeds from divestiture of businesses | 1,300 | ||||
Net assets | $ 1,300 | ||||
[1] | During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million. |
Reportable Segments Information
Reportable Segments Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 14,181 | $ 13,770 | $ 13,578 | |
Operating profit | 1,752 | 1,761 | 1,401 | |
Depreciation and amortization | 467 | 479 | 484 | |
Interest expense | 223 | 281 | 284 | |
Income taxes | 474 | 323 | 321 | |
Property, Plant and Equipment, Additions | 553 | 505 | 586 | |
Pre-tax charge, multi-employer pension plan withdrawal | 0 | (5) | 132 | |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 8,174 | 8,361 | 8,390 | |
Operating profit | 1,329 | 1,473 | 1,215 | [1] |
Depreciation and amortization | 262 | 282 | 291 | |
Interest expense | 0 | 0 | 0 | |
Property, Plant and Equipment, Additions | 324 | 270 | 356 | |
Pre-tax charge, multi-employer pension plan withdrawal | 132 | |||
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,397 | 2,232 | 2,092 | |
Operating profit | 350 | 301 | 222 | |
Depreciation and amortization | 92 | 84 | 80 | |
Interest expense | 4 | 4 | 6 | |
Income taxes | 48 | 29 | 48 | |
Property, Plant and Equipment, Additions | 102 | 120 | 83 | |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 997 | 914 | 940 | |
Operating profit | 109 | 97 | 85 | |
Depreciation and amortization | 25 | 30 | 30 | |
Interest expense | 1 | 6 | 9 | |
Income taxes | 52 | 20 | 16 | |
Property, Plant and Equipment, Additions | 42 | 31 | 41 | |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,613 | 2,263 | 2,156 | |
Operating profit | 246 | 202 | 195 | |
Depreciation and amortization | 84 | 79 | 76 | |
Interest expense | 17 | 8 | 14 | |
Income taxes | 40 | 33 | 23 | |
Property, Plant and Equipment, Additions | 73 | 77 | 101 | |
Total Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 2,034 | 2,073 | 1,717 | |
Depreciation and amortization | 463 | 475 | 477 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | (282) | (312) | (316) | |
Depreciation and amortization | 4 | 4 | 7 | |
Interest expense | 201 | 263 | 255 | |
Property, Plant and Equipment, Additions | 12 | 7 | 5 | |
Corporate And North America | ||||
Segment Reporting Information [Line Items] | ||||
Income taxes | $ 334 | $ 241 | $ 234 | |
[1] | During 2019, North America operating profit includes the recognition of multi-employer pension plan exit liabilities totaling $132 million. |
Reportable Segments Net sales t
Reportable Segments Net sales to external customers and long-lived assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 14,181 | $ 13,770 | $ 13,578 |
Property, net | 3,827 | 3,713 | 3,612 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 7,646 | 7,821 | 7,885 |
Property, net | 2,092 | 2,048 | 1,996 |
All Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 6,535 | 5,949 | 5,693 |
Property, net | $ 1,735 | $ 1,665 | $ 1,616 |
Reportable Segments Supplementa
Reportable Segments Supplemental product information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 14,181 | $ 13,770 | $ 13,578 |
Snacks | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,807 | 6,281 | 6,663 |
Retail Channel Cereal | |||
Segment Reporting Information [Line Items] | |||
Net sales | 5,123 | 5,433 | 5,029 |
Frozen | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,106 | 1,139 | 1,037 |
Noodles and other | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 1,145 | $ 917 | $ 849 |
Supplemental Financial Statem_3
Supplemental Financial Statement Data Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Disclosure Text Block Supplement [Abstract] | |||
Research and development expense | $ 134 | $ 135 | $ 144 |
Advertising Expense | $ 790 | $ 781 | $ 676 |
Supplemental Financial Statem_4
Supplemental Financial Statement Data Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Disclosure Text Block Supplement [Abstract] | ||||
Trade receivables | $ 1,240 | $ 1,272 | ||
Allowance for doubtful accounts | (15) | (19) | $ (10) | $ (10) |
Refundable income taxes | 62 | 66 | ||
Other Receivables | 202 | 218 | ||
Accounts receivable, net | 1,489 | 1,537 | ||
Raw materials and supplies | 383 | 338 | ||
Finished goods and materials in process | 1,015 | 946 | ||
Inventories, net | 1,398 | 1,284 | ||
Land | 123 | 120 | ||
Buildings | 2,238 | 2,135 | ||
Machinery and equipment | 6,277 | 6,080 | ||
Capitalized software | 594 | 543 | ||
Construction in progress | 623 | 641 | ||
Accumulated depreciation | (6,028) | (5,806) | ||
Property, net | 3,827 | 3,713 | $ 3,612 | |
Other intangibles | 2,552 | 2,612 | ||
Accumulated amortization | (143) | (121) | ||
Other intangibles, net | 2,409 | 2,491 | ||
Pension | 448 | 324 | ||
Deferred income taxes | 215 | 254 | ||
Nonpension post retirement benefit plans | 577 | 369 | ||
Other | 473 | 515 | ||
Other assets | 1,713 | 1,462 | ||
Accrued income taxes | 49 | 58 | ||
Other | 714 | 709 | ||
Other Liabilities, Current | 763 | 767 | ||
Income taxes payable | 40 | 56 | ||
Nonpension postretirement benefits | 32 | 34 | ||
Other | 384 | 435 | ||
Other liabilities | $ 456 | $ 525 |
Supplemental Financial Statem_5
Supplemental Financial Statement Data Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Disclosure Text Block Supplement [Abstract] | |||
Balance at beginning of year | $ 19 | $ 10 | $ 10 |
Additions charged to expense | (1) | 13 | 9 |
Doubtful accounts charged to reserve | (3) | (4) | (9) |
Balance at end of year | $ 15 | $ 19 | $ 10 |