Cover Page Document
Cover Page Document - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 30, 2023 | Jan. 27, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 1-4171 | ||
Entity Registrant Name | Kellanova | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 38-0710690 | ||
Entity Address, Address Line One | 412 N. Wells Street | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60654 | ||
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 | $ 19.2 | ||
Entity Common Stock, Shares Outstanding | 340,678,265 | ||
Documents Incorporated by Reference [Text Block] | Parts of the registrant’s Proxy Statement for the Annual Meeting of Shareowners to be held on April 26, 2024 are incorporated by reference into Part III of this Report. | ||
Closing price per share of common stock | $ 67.40 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0000055067 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.25 par value per share | ||
Trading Symbol | K | ||
Security Exchange Name | NYSE | ||
1.000% Senior Notes Due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.000% Senior Notes due 2024 | ||
Trading Symbol | K 24 | ||
Security Exchange Name | NYSE | ||
1.250% Senior Notes Due 2025 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.250% Senior Notes due 2025 | ||
Trading Symbol | K 25 | ||
Security Exchange Name | NYSE | ||
0.500% Senior Notes Due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.500% Senior Notes due 2029 | ||
Trading Symbol | K 29 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 13,122 | $ 12,653 | $ 11,747 |
Cost of goods sold | 8,839 | 8,842 | 7,929 |
Selling, general and administrative expense | 2,778 | 2,600 | 2,435 |
Operating profit | 1,505 | 1,211 | 1,383 |
Interest expense | 303 | 201 | 205 |
Other income (expense), net | (162) | (108) | 274 |
Income from continuing operations before income taxes | 1,040 | 902 | 1,452 |
Income taxes | 258 | 180 | 353 |
Earnings (loss) from unconsolidated entities | 6 | 9 | 3 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total | 788 | 731 | 1,103 |
Net income (loss) attributable to noncontrolling interests | 13 | 2 | 7 |
Income from discontinued operations, net of taxes | 176 | 231 | 392 |
Net income attributable to Kellanova | $ 951 | $ 960 | $ 1,488 |
Earnings from continuing operations, per basic share | $ 2.27 | $ 2.14 | $ 3.21 |
Earnings from discontinued operations, per basic share | 0.51 | 0.67 | 1.15 |
Net Earnings Per Common Share - Basic | 2.78 | 2.81 | 4.36 |
Earnings from continuing operations, per diluted share | 2.25 | 2.12 | 3.19 |
Earnings from discontinued operations, per diluted share | 0.51 | 0.67 | 1.14 |
Net Earnings Per Common Share - Diluted | $ 2.76 | $ 2.79 | $ 4.33 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 964 | $ 962 | $ 1,495 |
Foreign currency translation adjustments, pre-tax: | |||
Foreign currency translation adjustment before tax | (446) | (412) | (222) |
Net investment hedges gain (loss), pre-tax: | |||
Net investment hedge gain (loss), pre-tax | (128) | 287 | 236 |
Cash flow hedges, pre-tax: | |||
Net deferred gain (loss) on cash flow hedges, pre-tax | (19) | 221 | 38 |
Reclassifications to net income, pre-tax | 9 | (2) | 22 |
Postretirement and postemployment benefit amounts arising during the period, pre-tax: | |||
Net experience gain (loss) | 0 | 5 | (2) |
Prior service credit (cost) | (15) | (3) | (18) |
Postretirement and postemployment benefits reclassification to net income, pre-tax: | |||
Net experience (gain) loss, pre-tax | (1) | (2) | (2) |
Prior service (credit) cost, pre-tax | (1) | 1 | 0 |
Available-for-sale securities, pre-tax | |||
Unrealized gain (loss) on available-for-sale securities, pre-tax | 1 | (5) | (1) |
Reclassification to net income on available-for-sale securities, pre-tax | 3 | 1 | (2) |
Other comprehensive income (loss), pre-tax | (597) | 91 | 49 |
Foreign Currency Translation Adjustment, tax (expense) benefit: | |||
Foreign currency translation adjustments tax (expense) benefit | 2 | 3 | 5 |
Net Investment Hedges, tax (expense) benefit | |||
Net investment hedges gain (loss), tax (expense) benefit | 32 | (72) | (62) |
Cash flow hedges, tax (expense) benefit: | |||
Net deferred gain (loss) on cash flow hedges, tax (expense) benefit | 5 | (57) | (10) |
Reclassification to net income, tax (expense) benefit | (2) | 1 | (6) |
Postretirement and postemployment benefit amounts arising during the period, tax (expense) benefit: | |||
Net experience gain (loss), tax (expense) benefit | 0 | (1) | 1 |
Prior service credit (cost), tax (expense) benefit | 8 | 1 | 4 |
Postretirement and postemployment benefits reclassification to net income, tax (expense) benefit: | |||
Net experience (gain) loss, tax (expense) benefit | 0 | 1 | 0 |
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 | 45 | (124) | (68) |
Foreign currency translation adjustments, after tax: | |||
Foreign currency translation adjustments after tax | (444) | (409) | (217) |
Net Investment Hedges, after tax: | |||
Net investment hedges gain (loss), after-tax | (96) | 215 | 174 |
Cash flow hedges, after-tax: | |||
Net deferred gain (loss) on cash flow hedges, after-tax | (14) | 164 | 28 |
Reclassification to net income, after-tax | 7 | (1) | 16 |
Postretirement and postemployment benefit amounts arising during the period, after-tax | |||
Net experience gain (loss), after tax | 0 | 4 | (1) |
Prior service credit (cost), after-tax | (7) | (2) | (14) |
Postretirement and postemployment benefits reclassification to net income, after-tax | |||
Net experience loss, after-tax | (1) | (1) | (2) |
Prior service cost, after-tax | (1) | 1 | 0 |
Available-for-sale securities, after-tax | |||
Unrealized gain (loss) on available-for-sale securities, after-tax | 1 | (5) | (1) |
Reclassification to net income on available-for-sale securities, after-tax | 3 | 1 | (2) |
Other comprehensive income (loss) | (552) | (33) | (19) |
Comprehensive income | 412 | 929 | 1,476 |
Net income (loss) attributable to noncontrolling interests | 13 | 2 | 7 |
Other comprehensive income (loss) attributable to noncontrolling interests | (229) | (46) | (30) |
Comprehensive income attributable to Kellanova | $ 628 | $ 973 | $ 1,499 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Assets, Current [Abstract] | ||
Cash and cash equivalents | $ 274 | $ 299 |
Accounts receivable, net | 1,568 | 1,532 |
Inventories | 1,243 | 1,339 |
Other current assets | 245 | 378 |
Current assets of discontinued operations | 0 | 638 |
Total current assets | 3,330 | 4,186 |
Property, net | 3,212 | 3,090 |
Operating lease, right-of-use assets | 661 | 610 |
Goodwill | 5,160 | 5,381 |
Other intangibles, net | 1,930 | 2,239 |
Investment in unconsolidated entities | 184 | 432 |
Other assets | 1,144 | 1,280 |
Non-current assets of discontinued operations | 0 | 1,278 |
Total assets | 15,621 | 18,496 |
Liabilities, Current [Abstract] | ||
Current maturities of long-term debt | 663 | 780 |
Notes payable | 121 | 467 |
Accounts payable | 2,314 | 2,568 |
Current operating lease liabilities | 121 | 118 |
Accrued advertising and promotion | 766 | 709 |
Accrued salaries and wages | 278 | 318 |
Other current liabilities | 797 | 841 |
Current liabilities of discontinued operations | 0 | 548 |
Total current liabilities | 5,060 | 6,349 |
Long-term debt | 5,089 | 5,317 |
Operating lease liabilities | 532 | 482 |
Deferred income taxes | 497 | 707 |
Pension liability | 613 | 593 |
Other liabilities | 461 | 490 |
Non-current liabilities of discontinued operations | 0 | 183 |
Commitments and contingencies (Note 16) | ||
Equity [Abstract] | ||
Common stock, $0.25 par value, 1,000,000,000 shares authorized Issued: 421,326,361 shares in 2023 and 421,209,894 shares in 2022 | 105 | 105 |
Capital in excess of par value | 1,101 | 1,068 |
Retained earnings | 8,804 | 9,197 |
Treasury stock, at cost 80,738,167 shares in 2023 and 79,409,966 shares in 2022 | (4,794) | (4,721) |
Accumulated other comprehensive income (loss) | (2,041) | (1,708) |
Total Kellanova equity | 3,175 | 3,941 |
Noncontrolling interests | 194 | 434 |
Total equity | 3,369 | 4,375 |
Total liabilities and equity | $ 15,621 | $ 18,496 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) CONSOLIDATED BALANCE SHEET - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
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 | 421,326,361 | 421,209,894 |
Treasury Stock, Common, Shares | 80,738,167 | 79,409,966 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common stock | Capital in excess of par value | Retained earnings | Treasury Stock, Common | Accumulated other comprehensive income (loss) | Total Kellanova equity | Non- controlling interests |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 02, 2021 | $ 3,636 | $ 524 | ||||||
Balance, in shares at Jan. 02, 2021 | 421 | 77 | ||||||
Balance at Jan. 02, 2021 | $ 105 | $ 972 | $ 8,326 | $ (4,559) | $ (1,732) | $ 3,112 | ||
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 | ||||
Noncontrolling Interest, Increase from Business Combination | 52 | 22 | 22 | 30 | ||||
Dividends declared | (788) | (788) | (788) | |||||
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 | $ 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 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | (300) | $ (300) | (300) | |||||
Common stock repurchases (in shares) | 5 | |||||||
Net income (loss) | 962 | 960 | 960 | 2 | ||||
Dividends declared | (797) | (797) | (797) | |||||
Distributions to noncontrolling interest | (17) | 0 | (17) | |||||
Other comprehensive income (loss) | (33) | 13 | 13 | (46) | ||||
Stock compensation | 96 | 96 | 96 | |||||
Stock options exercised and other | 249 | (51) | 6 | $ 294 | 249 | |||
Stock options exercised and other (in shares) | 0 | (6) | ||||||
Balance, in shares at Dec. 31, 2022 | 421 | 79 | ||||||
Balance at Dec. 31, 2022 | 3,941 | $ 105 | 1,068 | 9,197 | $ (4,721) | (1,708) | 3,941 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2022 | 4,375 | 434 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock repurchases | (170) | $ (170) | (170) | |||||
Common stock repurchases (in shares) | 3 | |||||||
Net income (loss) | 964 | 951 | 951 | 13 | ||||
Dividends declared | (800) | (800) | (800) | |||||
Distributions to noncontrolling interest | (24) | 0 | (24) | |||||
Distribution of WK Kellogg Co. | (547) | (537) | (10) | (547) | ||||
Other comprehensive income (loss) | (552) | (323) | (323) | (229) | ||||
Stock compensation | 95 | 95 | 95 | |||||
Stock options exercised and other | 28 | (62) | (7) | $ 97 | 28 | |||
Stock options exercised and other (in shares) | (1) | |||||||
Balance, in shares at Dec. 30, 2023 | 421 | 81 | ||||||
Balance at Dec. 30, 2023 | 3,175 | $ 105 | $ 1,101 | $ 8,804 | $ (4,794) | $ (2,041) | $ 3,175 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 30, 2023 | $ 3,369 | $ 194 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) CONSOLIDATED STATEMENT OF EQUITY - $ / shares | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 2.34 | $ 2.34 | $ 2.31 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Operating Activities | |||
Net income | $ 964 | $ 962 | $ 1,495 |
Adjustments to reconcile net income to operating cash flows | |||
Depreciation, Depletion and Amortization | 419 | 478 | 467 |
Postretirement benefit plan expense (benefit) | 53 | 240 | (392) |
Deferred income taxes | (21) | (46) | 125 |
Stock compensation | 95 | 96 | 68 |
Loss on Russia Divestiture | 113 | 0 | 0 |
Other | 40 | (42) | (44) |
Postretirement benefit plan contributions | (42) | (23) | (20) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Trade receivables | (42) | (257) | (9) |
Inventories | 139 | (411) | (135) |
Accounts payable | (340) | 411 | 194 |
All other current assets and liabilities | 267 | 243 | (48) |
Net cash provided by (used in) operating activities | 1,645 | 1,651 | 1,701 |
Investing activities | |||
Additions to properties | (677) | (488) | (553) |
Issuance of notes receivable | (4) | (22) | (28) |
Repayments from notes receivable | 0 | 10 | 28 |
Settlement of net investment hedges | 68 | 37 | 19 |
Investments in unconsolidated entities | 0 | 0 | (10) |
Purchases of available-for-sale securities | (15) | (17) | (61) |
Sales of available-for-sale securities | 64 | 19 | 72 |
Other | 2 | 13 | 5 |
Net cash provided by (used in) investing activities | (562) | (448) | (528) |
Financing activities | |||
Net increase (reduction) of notes payable, with maturities less than or equal to 90 days | (356) | 337 | (27) |
Issuances of notes payable, with maturities greater than 90 days | 35 | 28 | 73 |
Reductions of notes payable, with maturities greater than 90 days | (25) | (35) | (63) |
Issuances of long-term debt | 404 | 39 | 361 |
Reductions of long-term debt | (780) | (648) | (650) |
Net issuances of common stock | 60 | 277 | 63 |
Common stock repurchases | (170) | (300) | (240) |
Cash dividends | (800) | (797) | (788) |
Distribution from WK Kellogg Co. | 663 | 0 | 0 |
Cash retained by WK Kellogg Co at Separation | (78) | 0 | 0 |
Other | (63) | 18 | (35) |
Net cash provided by (used in) financing activities | (1,110) | (1,081) | (1,306) |
Effect of exchange rate changes on cash and cash equivalents | 2 | (109) | (16) |
Increase (decrease) in cash and cash equivalents | (25) | 13 | (149) |
Cash and cash equivalents at beginning of period | 299 | 286 | 435 |
Cash and cash equivalents at end of period | 274 | 299 | 286 |
Supplemental cash flow disclosures: | |||
Interest paid | 291 | 220 | 213 |
Income taxes paid | 322 | 312 | 365 |
Supplemental cash flow disclosures of non-cash investing activities: | |||
Additions to properties included in accounts payable | $ 138 | $ 209 | $ 162 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of presentation The consolidated financial statements include the accounts of the Kellanova (the Company), formerly Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest (Kellanova or the Company). On October 2, 2023, the Company completed the separation of its North America cereal business resulting in two independent companies, Kellanova and WK Kellogg Co. As a result of the distribution, Kellanova shareholders of record on September 21, 2023, received one share of WK Kellogg Co common stock for every four shares of Kellanova common stock. In accordance with applicable accounting guidance, the results of WK Kellogg Co are presented as discontinued operations in the consolidated statements of operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Further, the Company reclassified the assets and liabilities of WK Kellogg Co as assets and liabilities of discontinued operations in the consolidated balance sheet as of December 31, 2022. The consolidated statements of comprehensive income, equity and cash flows are presented on a consolidated basis for both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of Kellanova unless otherwise noted. See Note 2 for additional information. 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 2023, 2022 and 2021 fiscal years each contained 52 weeks and ended on December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Certain prior period amounts have been updated to conform to the current period presentation. 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. The Company's critical estimates include those related to promotional expenditures, goodwill and other intangible assets, retirement benefits, and income taxes. Actual results could differ from those estimates and could be impacted from macroeconomic conditions. 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 2023 and 2022 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 3 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 2023 or 2022. 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. The reporting unit’s fair value is estimated using a combination of a market multiples and discounted cash flow methodologies. The market multiples approach is based on either sales or earnings before interest, taxes, depreciation and amortization for companies that are comparable to the Company’s reporting units. The discounted cash flow approach 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 establishes competitive market-based terms with our suppliers, regardless of whether they participate in supplier finance programs, which generally range from 0 to 150 days dependent on their respective industry and geography. 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 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 December 30, 2023, $825 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. As of December 31, 2022, $932 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. 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 use 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 recorded in cost of goods sold (COGS) 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 accrued advertising and promotion. The Company classifies promotional expenditures 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 accrued advertising and promotion. 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 18 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. 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 17 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. Accounting standards to be adopted in future periods Income Taxes: Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09 to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. It will take effect for public entities fiscal years beginning after December 15, 2024, with early adoption permitted.The Company is currently assessing the impact of any incremental disclosures required by this ASU and the planned timing of adoption. Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, which focuses on enhancing reportable segment disclosures under Segment Reporting (Topic 280). This new standard is designed to enhance the transparency of significant segment expenses on an interim and annual basis. It will take effect for public entities fiscal years beginning after December 15, 2023, with the option for earlier adoption at any time before the specified date, with retrospective requirements. The Company is currently assessing the impact of any incremental disclosures required by this ASU and the planned timing of adoption. Accounting standards adopted during the period Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations. In September 2022, the FASB issued an ASU to improve the disclosures of supplier finance programs. Specifically, the ASU requires disclosure of key terms of the supplier finance programs and a rollforward of the related obligations. The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company has historically presented information regarding the nature and amount of outstanding Accounts Payable obligations confirmed into supplier finance programs within the Accounting Policies note of the financial statements. The Company adopted the ASU in the first quarter of 2023 and plans to include the rollforward information in the first quarter of 2024. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | DISCONTINUED OPERATIONS As disclosed in Note 1, on October 2, 2023, the Company completed the separation of its North America cereal business resulting in two independent companies, Kellanova and WK Kellogg Co. As a result of the distribution, Kellanova shareholders of record on September 21, 2023, received one share of WK Kellogg Co common stock for every four shares of Kellanova common stock. In accordance with applicable accounting guidance, the results of WK Kellogg Co are presented as discontinued operations in the consolidated statements of operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Further, the Company reclassified the assets and liabilities of WK Kellogg Co as assets and liabilities of discontinued operations in the consolidated balance sheet as of December 31, 2022. The consolidated statements of cash flows are presented on a consolidated basis for both continuing operations and discontinued operations. The following table presents key components of “Income from discontinued operations, net of income taxes” for the fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022: (millions) 2023 2022 2021 Net sales $ 2,085 $ 2,662 $ 2,434 Cost of goods sold $ 1,387 $ 1,858 $ 1,692 Selling, general and administrative expense $ 479 $ 381 $ 373 Operating profit $ 219 $ 423 $ 369 Interest expense $ 26 $ 17 $ 18 Other income (expense), net $ 54 $ (111) $ 162 Income from discontinued operations before income taxes $ 247 $ 295 $ 513 Income taxes $ 71 $ 64 $ 121 Net income from discontinued operations, net of tax $ 176 $ 231 $ 392 The following table presents assets and liabilities that are classified as discontinued operations on the consolidated balance sheet as of December 31, 2022: (millions) Cash and cash equivalents $ — Accounts receivable, net $ 204 Inventories $ 429 Other current assets $ 5 Total current assets of discontinued operations $ 638 Property, net $ 699 Operating lease right-of-use assets $ 7 Goodwill $ 305 Other intangibles $ 57 Other assets $ 210 Total assets of discontinued operations $ 1,916 Accounts payable $ 405 Current operating lease liabilities $ 3 Accrued advertising and promotion $ 57 Accrued salaries and wages $ 52 Other current liabilities $ 31 Total current liabilities of discontinued operations $ 548 Operating lease liabilities $ 4 Deferred income taxes $ 53 Pension liability $ 116 Other non-current liabilities $ 10 Total liabilities of discontinued operations $ 731 The following table presents significant cash flow items from discontinued operations for the fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022: (millions) 2023 2022 2021 Depreciation and amortization $ 52 $ 74 $ 72 Additions to properties $ 107 $ 87 $ 90 Postretirement benefit plan expense (benefit) $ (53) $ 123 $ (143) On September 29, 2023, in connection with the planned separation, WK Kellogg Co entered into a Credit Agreement (the “Credit Agreement”) and borrowed $664 million under the term loan and revolving credit facility under the Credit Agreement. Approximately $663 million of these borrowings was paid by WK Kellogg Co to Kellanova in the form of a dividend. Pursuant to the conditions of the private letter ruling from the Internal Revenue Service, Kellanova used the proceeds from the dividend, along with cash on hand to repay outstanding commercial paper and the 2.65% Senior Notes due 2023, which had an outstanding principal balance of $550 million. In a pro rata spin-off of consolidated subsidiaries, the distribution of the assets and liabilities are recognized through equity instead of net income. Accordingly, Kellanova has recognized the distribution of net assets to WK Kellogg Co in retained earnings. Following the completion of the separation on October 2, 2023, the term loan and revolving credit facility under the Credit Agreement are no longer obligations of Kellanova. In connection with the separation, WK Kellogg Co entered into several agreements with Kellanova that govern the relationship of the parties following the spin-off including a Separation and Distribution Agreement, a Manufacturing and Supply Agreement (“Supply Agreement”), a Tax Matters Agreement, Employee Matters Agreement, Transition Services Agreement (“TSA”), and various lease agreements. Pursuant to the TSA, both Kellanova and WK Kellogg Co agree to provide certain services to each other, on an interim, transitional basis from and after the separation and the distribution for an initial duration of two years following the spin-off. The TSA covers various services such as supply chain, IT, commercial, sales, Finance, HR, R&D and other Corporate. The remuneration to be paid for such services is generally intended to allow the company providing the services to recover all of its costs and expenses of providing such services. The costs and reimbursements related to services provided by Kellanova under the TSA are recorded in continuing operations with the consolidated statement of operations. During 2023 Kellanova recorded approximately $52 million of cost reimbursements related to the TSA, of which $37 million is recognized in COGS and $15 million in SGA in the Consolidated Statement of Income. These reimbursements are a direct offset within the consolidated statement of income to the costs incurred related to providing services under the TSA. |
SALE OF ACCOUNTS RECEIVABLE
SALE OF ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 30, 2023 | |
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 approximately $975 million. During 2023 the Company amended the agreements to increase the previous maximum receivables sold limit from approximately $920 million as of December 31, 2022. 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 December 30, 2023 and December 31, 2022 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 $697 million and $609 million remained outstanding under these arrangements as of December 30, 2023 and December 31, 2022, 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 $41 million, $16 million and $6 million for the years ended December 30, 2023, December 31, 2022 and January 1, 2022, 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 $8 million and $31 million remained outstanding under these programs as of December 30, 2023 and December 31, 2022, 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. |
DIVESTITURE
DIVESTITURE | 12 Months Ended |
Dec. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Excluding Discontinued Operations, Disclosure | DIVESTITURE Russia In July 2023 the Company completed the sale of its Russian business. As a result of completing the transaction, the Company derecognized net assets of approximately $65 million and recorded a non-cash loss on the transaction of approximately $113 million in OIE, primarily related to the release of historical currency translation adjustments. The business was part of the Europe reportable segment and the sale resulted in a complete exit from the Russian market. The business in Russia represented approximately 1% of consolidated Kellanova net sales. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND DIVESTITURES | 12 Months Ended |
Dec. 30, 2023 | |
Business Combinations [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure | INVESTMENTS 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. The Company records the activity of TAF on a one-month lag due to the timing required to obtain the financial statements from TAF management. 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 $796 million and $900 million for the years ended December 30, 2023 and December 31, 2022, respectively, consist primarily of inventory purchases by Multipro. During the second quarter of 2023, the Company recorded an out-of-period adjustment to correct an error in the foreign currency translation of its investment in TAF. The adjustment decreased investments in unconsolidated entities and increased other comprehensive loss by $113 million, respectively. We determined the adjustment to be immaterial to our Consolidated Financial Statements for the year to date period ended December 30, 2023 and related prior annual and quarterly periods. During 2023, the Company recorded significant foreign currency translation adjustments due to the devaluation of the Nigerian Naira. The Company, following its accounting practice of recording the operations of its subsidiary, TAF, on a one-month lag basis has recognized these additional adjustments based on the foreign currency exchange rates as of the end of November 2023. The aggregate effect of these adjustments for the year resulted in translation losses of approximately $141 million, which have been recognized in other comprehensive income. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Other 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 January 1, 2022 $ 4,118 $ 350 $ 171 $ 827 $ 5,466 Currency translation adjustment (3) (22) 6 (66) (85) December 31, 2022 $ 4,115 $ 328 $ 177 $ 761 $ 5,381 Currency translation adjustment 1 8 14 (244) (222) December 30, 2023 $ 4,116 $ 336 $ 191 $ 517 $ 5,160 Other intangible assets 2023 2022 (millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangibles subject to amortization (a) $ 334 $ (154) $ 180 $ 489 $ (162) $ 327 Intangibles not subject to amortization $ 1,750 $ — $ 1,750 $ 1,912 $ — $ 1,912 (a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $24 million per year through 2027. Cumulative goodwill impairment losses are not material. The change in goodwill and other intangible asset values presented in the tables above include the impact of foreign currency translation adjustments which are primarily related to the devaluation of the Nigerian Naira. Annual impairment testing At December 30, 2023, goodwill and other intangible assets amounted to $7.0 billion, consisting primarily of goodwill and brands. Within this total, approximately $1.8 billion of non-goodwill intangible assets were classified as indefinite-lived, including $1.6 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 operating segment. The Company's annual reporting unit goodwill impairment testing, performed through the fourth quarter of 2023, consisted of quantitative testing due primarily to the passage of time since the last quantitative test. No heightened risk or qualitative indicators of goodwill impairment of any reporting units was identified. The Company's annual intangible asset impairment testing was also performed through the fourth quarter of 2023 consisting of qualitative or quantitative testing for all significant intangible assets. As a result of the annual impairment testing the Company recognized a non-cash impairment of $ 34 million selling, general and administrative expense related to a 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. After the impairment, the carrying value of this brand was $150 million at December 30, 2023. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Equity | EQUITY Earnings per share Basic earnings per share is determined by dividing net income attributable to Kellanova 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): 2023-3.9; 2022-2.9; 2021-10.6. Stock transactions The Company issues shares to employees and directors under various equity-based compensation and stock purchase programs, as further discussed in Note 10. 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. In December 2022, the board of directors approved a new authorization to repurchase up to $1.5 billion of our common stock through December 2025. During 2023, the Company repurchased 3 million shares of common stock for a total of $170 million. During 2022, the Company repurchased 5 million shares of common stock for a total of $300 million. During 2021, the Company repurchased 4 million shares of common stock for a total of $240 million. As of December 30, 2023, approximately $1.3 billion remains available under the December 2022 stock repurchase program. 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, which are recorded in interest expense within the statement of income, upon reclassification from Accumulated Other Comprehensive Income (AOCI), adjustments for net experience gains (losses), prior service credit (costs) related to employee benefit plans and adjustments for unrealized (gains) losses on available-for-sale securities, which are recorded in other income (expense) within the statement of income, upon reclassification from AOCI. The related tax effects of these items are recorded in income tax expense within the statement of income, upon reclassification from AOCI. Accumulated other comprehensive income (loss) as of December 30, 2023 and December 31, 2022 consisted of the following: (millions) December 30, 2023 December 31, 2022 Foreign currency translation adjustments $ (2,326) $ (2,111) Net investment hedges gain (loss) 186 282 Cash flow hedges — net deferred gain (loss) 143 150 Postretirement and postemployment benefits: Net experience gain (loss) 1 2 Prior service credit (cost) (45) (27) Available-for-sale securities unrealized net gain (loss) — (4) Total accumulated other comprehensive income (loss) $ (2,041) $ (1,708) |
LEASES AND OTHER COMMITMENTS
LEASES AND OTHER COMMITMENTS | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases and other commitments | LEASES AND OTHER COMMITMENTS The Company recorded operating lease costs of $137 million, $132 million and $136 million for the years ended December 30, 2023, December 31, 2022 and January 1, 2022, 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 December 30, 2023 Year ended December 31, 2022 Year ended January 1, 2022 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 138 $ 121 $ 135 Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 89 $ 84 $ 55 Modified leases $ 74 $ 27 $ 53 Weighted-average remaining lease term - operating leases 7 years 7 years Weighted-average discount rate - operating leases 3.6% 2.9% At December 30, 2023 future maturities of operating leases were as follows: (millions) Operating 2024 $ 139 2025 136 2026 109 2027 87 2028 62 2029 and beyond 208 Total minimum payments $ 741 Less interest (88) Present value of lease liabilities $ 653 Operating lease payments presented in the table above exclude $40 million of minimum lease payments for real-estate leases signed but not yet commenced as of December 30, 2023. The leases are expected to commence in 2024. At December 30, 2023, 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 December 30, 2023, the Company had not recorded any liability related to these indemnifications. |
DEBT
DEBT | 12 Months Ended |
Dec. 30, 2023 | |
Debt [Abstract] | |
Long-term Debt [Text Block] | DEBT The following table presents the components of notes payable at year end December 30, 2023 and December 31, 2022: (millions) 2023 2022 Principal Effective Principal Effective U.S. commercial paper $ — — % $ 330 4.46 % Bank borrowings 121 137 Total $ 121 $ 467 The following table presents the components of subordinated long-term debt at year end December 30, 2023 and December 31, 2022: (millions) 2023 2022 4.50% $650 million U.S. Dollar Notes due 2046 $ 639 $ 639 5.25% $400 million U.S. Dollar Notes due 2033 397 — 7.45% $625 million U.S. Dollar Debentures due 2031 622 622 2.10% $500 million U.S. Dollar Notes due 2030 497 497 0.50% €300 million Euro Notes due 2029 329 317 4.30% $600 million U.S. Dollar Notes due 2028 552 539 3.40% $600 million U.S. Dollar Notes due 2027 598 597 3.25% $750 million U.S. Dollar Notes due 2026 747 745 1.25% €600 million Euro Notes due 2025 667 648 1.00% €600 million Euro Notes due 2024 655 617 2.65% $600 million U.S. Dollar Notes due 2023 — 547 2.75% $400 million U.S. Dollar Notes due 2023 — 210 Other 49 119 5,752 6,097 Less current maturities (663) (780) Balance at year end $ 5,089 $ 5,317 During the first quarter of 2023, Kellanova issued $400 million of ten-year 5.25% Notes due 2033, resulting in net proceeds after discount and underwriting commissions of $396 million. The proceeds from these notes were used for general corporate purposes, including the payment of offering related fees and expenses, repayment of the $210 million 2.75% Notes when they matured on March 1, 2023, and repayment of a portion of commercial paper borrowings. The Notes contain customary covenants that limit the ability of the Company and its restricted subsidiaries (as defined) to incur certain liens or enter into certain sale and lease-back transactions, as well as a change of control provision. In connection with the debt issuance, Kellanova terminated forward starting interest rate swaps with notional amounts totaling $400 million, resulting in a gain of $47 million in the first quarter of 2023. These derivatives were accounted for as cash flow hedges. The total net gain of $91 million, including those realized in prior periods, were recorded in accumulated other comprehensive income and will be amortized to interest expense over the term of the Notes. At the time of debt issuance, the effective interest rate on the Notes, reflecting issuance discount and hedge settlement was 3.06%. In November 2022, the Company repaid the €600 million, five-year 0.80% Euro Notes due 2022, upon maturity. 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 December 30, 2023. 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 December 30, 2023 and December 31, 2022. At December 30, 2023, 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 2023, 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, which is expected to mature in December 2024. The Five-Year and 364 Day Credit Agreements which had no outstanding borrowings as December 30, 2023, 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 December 30, 2023 and December 31, 2022 . Scheduled principal repayments on long-term debt are (in millions): 2024–$671; 2025–$670; 2026–$757; 2027–$607; 2028–$608; 2028 and beyond–$2,519. Financial institutions have issued standby letters of credit conditionally guaranteeing obligations on behalf of the Company totaling $68 million, including $67 million secured and $1 million unsecured, as of December 30, 2023. These obligations are related primarily to insurance programs. There were no amounts drawn down on the letters of credit as of December 30, 2023. 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 |
Dec. 30, 2023 | |
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 o utside directors. These awards are administered through several plans, as described within this Note. Stock awards are granted to non-employee Directors in early May of each year and are automatically deferred pursuant to the Kellanova Grantor Trust for Non-Employee Directors (the "Grantor Trust") in the form of deferred shares of our common stock (or "DSUs"). Under the terms of the Grantor Trust, shares underlying vested stock awards are settled only upon a Director's termination of service on the Board. The 2022 Long-Term Incentive Plan (2022 Plan), approved by shareholders in April 2022, 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. Through February 2022, the 2017 Long-Term Incentive Plan (2017) had a remaining 13.8 million authorized but unissued shares which was replaced by the 2022 Plan. The 2022 Plan authorizes the issuance of a total of 14.0 million shares. At December 30, 2023, there were 12.4 million remaining authorized, but unissued, shares under the 2022 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 Kellanova 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) 2023 2022 2021 Pre-tax compensation expense $ 96 $ 100 $ 73 Related income tax benefit $ 25 $ 26 $ 19 As of December 30, 2023, total stock-based compensation cost related to non-vested awards not yet recognized was $108 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) 2023 2022 2021 Total cash received from option exercises and similar instruments (a) $ 60 $ 277 $ 63 Tax windfall (shortfall) classified as cash flow from operating activities (a) $ 3 $ 3 $ (3) (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting 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 7 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. Performance Shares and Restricted Stock Units During the periods presented, stock-based awards consisted principally of performance shares and restricted stock units granted under the 2022 and 2017 Plans. In the first quarter of 2023, the Company granted performance share units to eligible 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 performance period. The performance conditions of the award include net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2023 target performance share unit currently corresponds to approximately 765,000 shares, with a grant-date fair value of $60 per share. In 2022, 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 performance period. The performance conditions of the award include net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2022-2024 EPP performance goals were established at the beginning of 2022 and did not contemplate the spin-off of WK Kellogg Co. The terms of the EPP provided for equitably adjusting the goals based on extraordinary events like a spin-off. The Company completed the spin-off of WK Kellogg Co on October 2, 2023. Adjustments were made to performance goals primarily to equitably adjust for the impact of the spin-off and the performance period ending on the date of the spin-off as well as account for the divestiture of the Company's business in Russia. In October 2023 the Board of Directors approved a payout of 140% to vest based on the holder's continued service with the Company through the original vesting period. In 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 performance period. The performance conditions of the award include net sales growth and cash flow related targets. Dividend equivalents accrue and vest in accordance with the underlying award. The 2021-2023 EPP performance goals were established at the beginning of 2021 and did not contemplate the spin-off of WK Kellogg Co. The terms of the EPP provided for equitably adjusting the goals based on extraordinary events like a spin-off. The Company completed the spin-off of WK Kellogg Co on October 2, 2023. Adjustments were made to performance goals primarily to equitably adjust for the impact of the spin-off and the performance period ending on the date of the spin-off as well as account for the divestiture of the Company's business in Russia. In October 2023 the Board of Directors approved a payout of 165% to vest based on the holder's continued service with the Company through the original vesting period. Based on the market price of the Company’s common stock at year-end 2023, the maximum future value that could be awarded on the vesting date was $86 million for the 2023 award. The 2020 performance share award, payable in stock, was settled at 175% of target in February 2023 for a total dollar equivalent of $34 million. The Company also gr ants restricted stock units to eligible employees, typically with three-year cliff vesting earning dividend equivalent units. 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 December 30, 2023, is presented in the following table: Employee restricted stock units Shares (thousands) Weighted-average Non-vested, beginning of year (a) 1,661 $ 64 Granted 572 68 Vested (491) 65 Forfeited (359) 65 Performance share conversion 1,486 63 Awards transferred to WK Kellogg Co (529) 65 Adjustment for spin-off (b) 843 — Non-vested, end of year 3,183 $ 58 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting. (b) In connection with the spin-off of WK Kellogg Co, the modification of restricted stock units resulted in incremental expense totaling approximately $11 million to be amortized over the remaining vesting period of the award. Additionally, restricted stock unit activity for 2022 and 2021 is presented in the following table: Employee restricted stock units (a) 2022 2021 Shares (in thousands): Non-vested, beginning of year 1,786 1,736 Granted 709 727 Vested (619) (489) Forfeited (215) (188) Non-vested, end of year 1,661 1,786 Weighted-average exercise price: Non-vested, beginning of year $ 60 $ 61 Granted 67 58 Vested 57 63 Forfeited 62 60 Non-vested, end of year $ 64 $ 60 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting The total fair value of restricted stock units vesting in the periods presented was (in millions): 2023–$33; 2022–$41; 2021–$29. Stock options During 2021, non-qualified stock options were granted to eligible employees under the 2017 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. Since 2021, the Company has not granted non-qualified stock options to eligible employees. The non-qualified stock option grant was replaced with performance shares for the population of Long-Term Incentive grantees. 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 Weighted-average expected volatility 20.00 % Weighted-average expected term (years) 6.7 Weighted-average risk-free interest rate 0.96 % Dividend yield 3.90 % Weighted-average fair value of options granted $ 6.39 A summary of option activity for the year ended December 30, 2023 is presented in the following table: Employee and director Shares Weighted- Weighted- Aggregate Outstanding, beginning of year (a) 10 $ 65 Granted — — Exercised (1) 59 Forfeitures and expirations (1) 60 Awards transferred to WK Kellogg Co (1) 66 Adjustment for spin-off (b) 2 Outstanding, end of year 9 55 4.5 $ 15 Exercisable, end of year 8 $ 59 4.3 $ 12 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting. (b) In connection with the spin-off of WK Kellogg Co, the modification of stock options resulted in incremental expense totaling approximately $10 million, of which $9 million was related to vested awards and was recognized immediately. The remaining expense will be amortized over the vesting period of the award. Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) (a) 2022 2021 Outstanding, beginning of year 15 14 Granted — 3 Exercised (4) (1) Forfeitures and expirations (1) (1) Outstanding, end of year 10 15 Exercisable, end of year 8 10 Weighted-average exercise price: Outstanding, beginning of year $ 64 $ 65 Granted — 58 Exercised 61 56 Forfeitures and expirations 63 66 Outstanding, end of year $ 65 $ 64 Exercisable, end of year $ 67 $ 66 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting. The total intrinsic value of options exercised during the periods presented was (in millions): 2023–$5; 2022–$44; 2021–$6. |
PENSION BENEFITS
PENSION BENEFITS | 12 Months Ended |
Dec. 30, 2023 | |
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 13 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. Obligations and funded status The aggregate change in projected benefit obligation, plan assets, and funded status is presented in the following tables. (millions) 2023 2022 Change in projected benefit obligation Beginning of year $ 2,877 $ 4,444 Service cost 17 20 Interest cost 149 109 Amendments 38 2 Actuarial (gain)loss 198 (1,119) Benefits paid (256) (430) Other — (1) Foreign currency adjustments 54 (148) End of year $ 3,077 $ 2,877 Change in plan assets Fair value beginning of year $ 2,589 $ 4,236 Actual return on plan assets 211 (1,059) Employer contributions 25 2 Plan participants’ contributions — 1 Benefits paid (238) (403) Other — — Foreign currency adjustments 63 (188) Fair value end of year $ 2,650 $ 2,589 Funded status $ (427) $ (288) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 201 $ 320 Other current liabilities (15) (15) Pension liability (613) (593) Net amount recognized $ (427) $ (288) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 71 $ 57 Net amount recognized $ 71 $ 57 The accumulated benefit obligation for all defined benefit pension plans was $3 billion at December 30, 2023 and $2.8 billion at December 31, 2022. Information for pension plans with accumulated benefit obligations in excess of plan assets were: (millions) 2023 2022 Projected benefit obligation $ 1,844 $ 1,884 Accumulated benefit obligation $ 1,834 $ 1,875 Fair value of plan assets $ 1,224 $ 1,278 Information for pension plans with projected benefit obligations in excess of plan assets were: (millions) 2023 2022 Projected benefit obligation $ 1,924 $ 1,952 Accumulated benefit obligation $ 1,893 $ 1,923 Fair value of plan assets $ 1,299 $ 1,343 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) 2023 2022 2021 Service cost $ 17 $ 20 $ 24 Interest cost 149 109 83 Expected return on plan assets (183) (215) (253) Amortization of unrecognized prior service cost 6 6 5 Other expense (income) — (1) — Recognized net (gain) loss 171 153 (20) Net periodic benefit cost 160 72 (161) Curtailment and special termination benefits — — (1) Pension (income) expense: Defined benefit plans 160 72 (162) Defined contribution plans 5 5 7 Total $ 165 $ 77 $ (155) The Company and certain of its subsidiaries sponsor 401(k) or similar savings plans for active employees. Expense related to these plans was (in million s): 2023 – $40 million; 2022 – $41 million; 2021 – $41 million. These amounts are not included in the preceding expense table. Company contributions to these savings plans approximate annual expense. Company contributions to multiemployer and other defined contribution pension plans approximate the amount of annual expense presented in the preceding table. Assumptions The worldwide weighted-average actuarial assumptions used to determine benefit obligations were: 2023 2022 2021 Discount rate 4.8 % 5.3 % 2.6 % Long-term rate of compensation increase 3.3 % 3.5 % 3.4 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2023 2022 2021 Discount rate 5.3 % 2.2 % 1.3 % Discount rate - interest 5.2 % 2.1 % 1.0 % Long-term rate of compensation increase 3.5 % 3.5 % 3.5 % Long-term rate of return on plan assets 7.2 % 5.9 % 5.6 % 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 approxima tely 56% of consolidated pension and other postretirement benefit plan assets, incorporates a long-term inflation assumption of 2.5% and an active management premium of 0.84% (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 20 23 of 7.75% for the U.S. plans equated to approximately the 55th 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 2023 fiscal year-end, the Company used the 2019 SOA tables with collar adjustments based on Kellanova’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. There were no changes to the year-end pension and postretirement benefit obligations due to mortality assumption changes. To conduct our annual review of discount rates, we 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 constituting 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. We use a December 31 measurement date for our defined benefit plans. Accordingly, we select yield curves to measure our benefit obligations that are 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 2023 , the Company recognized a net actuarial loss of approximatel y $171 million driven by assumption changes, including decreases in the discount rate and from the UK buy-in of annuities, as well as lower 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. Equity options: Value is based on exit prices quoted in active or non-active markets. Investments stated at estimated fair value using significant unobservable inputs (Level 3) include: Buy-in annuity contract: Valued based on the estimated cost to enter an equivalent contract at the balance sheet date. Secure income fund: Valued at exit prices quoted in non-active markets or based on observable inputs. 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 December 30, 2023, the Company had no transfers between Levels 1 and 2. The fair value of Plan assets as of December 30, 2023 and December 31, 2022 within the fair value hierarchy are as follows: (millions) Fair Value Hierarchy Level 2023 2022 Cash and cash equivalents (a) 1, 2 $ 60 $ 11 Corporate stock, common 1 53 145 Collective trusts: Equity 2 13 — Debt 2 38 302 Bonds, corporate 2 222 209 Bonds, government 2 94 81 Bonds, other 2 16 61 Buy-in annuity contract 3 839 173 Other (b) 2, 3 29 90 Sub-total $ 1,364 $ 1,072 Investments measured at net asset value (NAV) practical expedient (c) 1,286 $ 1,517 Total plan assets $ 2,650 $ 2,589 (a) Cash and cash equivalents includes Level 1 assets of $60 million and $16 million for 2023 and 2022, respectively, and Level 2 assets of $0 million and ($5) million for 2023 and 2022, respectively. (b) Other includes Level 2 assets of $3 million and $64 million for 2023 and 2022, respectively, and Level 3 assets of $26 million for 2023 and 2022. (c) 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 December 30, 2023 or December 31, 2022. 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–38.0%; debt securities–40.0%; real estate and other–22.0%. Investment in Company common stock represented 1.9% and 2.1% of consolidated plan assets at December 30, 2023 and December 31, 2022, 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 $46 million to its defined benefit pension plans during 2024. Level 3 gains and losses Changes in fair value of the Plan's Level 3 assets are summarized as follows: (millions) Annuity Contract Other January 1, 2022 $ 269 $ — Additions — 27 Realized and unrealized loss (75) (1) Currency translation (21) — December 31, 2022 $ 173 $ 26 Additions 589 — Realized and unrealized loss 68 (1) Currency translation 9 1 December 30, 2023 $ 839 $ 26 Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions): 2024–$205; 2025–$212; 2026–$215; 2027–$214; 2028–$221; 2029 to 2033–$1,115. |
NONPENSION POSTRETIREMENT AND P
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS | 12 Months Ended |
Dec. 30, 2023 | |
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) 2023 2022 Change in accumulated benefit obligation Beginning of year $ 321 $ 423 Service cost 3 4 Interest cost 21 10 Actuarial (gain) loss (5) (92) Benefits paid (17) (22) Amendments (26) — Other 2 — Foreign currency adjustments — (2) End of year $ 299 $ 321 Change in plan assets Fair value beginning of year $ 529 $ 694 Actual return on plan assets 81 (141) Employer contributions 10 9 Benefits paid (29) (33) Other (4) — Fair value end of year $ 587 $ 529 Funded status $ 288 $ 208 Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 311 $ 228 Other current liabilities (1) (1) Other liabilities (22) (19) Net amount recognized $ 288 $ 208 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (30) (32) Net amount recognized $ (30) $ (32) Information for postretirement benefit plans with accumulated benefit obligations in excess of plan assets were: (millions) 2023 2022 Accumulated benefit obligation $ 23 $ 21 Fair value of plan assets $ — $ — Expense The components of nonpension postretirement 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. Components of postretirement benefit expense (income) were: (millions) 2023 2022 2021 Service cost $ 3 $ 4 $ 4 Interest cost 21 10 8 Expected return on plan assets (51) (42) (35) Amortization of unrecognized prior service credit (4) (4) (4) Recognized net (gain) loss (29) 76 (60) Net periodic benefit expense (income) (60) 44 (87) Postretirement benefit expense (income): Defined benefit plans (60) 44 (87) Defined contribution plans 15 13 13 Total $ (45) $ 57 $ (74) Assumptions The weighted-average actuarial assumptions used to determine benefit obligations were: 2023 2022 2021 Discount rate 5.1 % 5.5 % 2.9 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2023 2022 2021 Discount rate 5.5 % 2.8 % 2.5 % Discount rate - interest 5.3 % 2.3 % 1.8 % Long-term rate of return on plan assets 8.0 % 7.0 % 6.3 % 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 11. The assumed U.S. health care cost trend rate is 6.50% for 2024, remaining at this rate until 2025, then decreasing 0.25% annually to 4.5% in 2033 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 2023, the Company recognized a net actuarial gain of approximately $29 million driven by higher than expected asset returns, partially offset by the impact of higher discount rates and the impact of other assumption changes. Plan assets The fair value of Plan assets as of December 30, 2023 and December 31, 2022 are summarized within fair value hierarchy described in Note 11, are as follows: (millions) Fair Value Hierarchy Level 2023 2022 Cash and cash equivalents 1 $ 1 $ — Corporate stock, common 1 — 74 Mutual funds: Equity 2 7 16 Bonds, corporate 2 64 72 Bonds, government 2 16 29 Bonds, other 2 4 4 Sub-total $ 92 $ 195 Investments measured at net asset value (NAV) practical expedient (a) 495 $ 334 Total plan assets $ 587 $ 529 (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 11. The current target asset allocation is 69% equity securities, 26% debt securities, and 5% real estate and other. The Company currently expects to contribute approximately $18 million to its VEBA trusts during 2024. There were no Level 3 assets during 2023 and 2022. 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 11. The aggregate change in accumulated postemployment benefit obligation and the net amount recognized were: (millions) 2023 2022 Change in accumulated benefit obligation Beginning of year $ 29 $ 37 Service cost 2 2 Interest cost 1 1 Actuarial (gain)loss — (6) Benefits paid (2) (5) End of year $ 30 $ 29 Funded status $ (30) $ (29) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (5) $ (6) Other liabilities (25) (23) Net amount recognized $ (30) $ (29) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ — $ 2 Net experience gain (11) (18) Net amount recognized $ (11) $ (16) The components of postemployment benefit 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. (millions) 2023 2022 2021 Service cost $ 2 $ 2 $ 2 Interest cost 1 1 — Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (2) (1) (1) Net periodic benefit cost $ 2 $ 3 $ 2 Settlement cost — (2) (1) Postemployment benefit expense $ 2 $ 1 $ 1 Benefit payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (millions) Postretirement Postemployment 2024 $ 25 $ 5 2025 25 5 2026 24 4 2027 24 4 2028 24 4 2029-2033 115 15 |
MULTIEMPLOYER PENSION AND POSTR
MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS | 12 Months Ended |
Dec. 30, 2023 | |
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 11 and Note 12, 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): 2023 - $5; 2022 - $5; 2021 - $7. 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 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 follows (millions): 2023 - $9; 2022 - $10; 2021 - $10. The Company had withdrawal liabilities of $110 million and $117 million at December 30, 2023 and December 31, 2022, 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): 2023 – $15; 2022 – $13; 2021 – $13. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2023 | |
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) 2023 2022 2021 Income before income taxes United States $ 577 $ 360 $ 693 Foreign 463 542 759 1,040 902 1,452 Income taxes Currently payable Federal 153 110 101 State 29 19 27 Foreign 114 101 106 296 230 234 Deferred Federal (49) (43) 37 State 23 (6) 1 Foreign (12) (1) 81 (38) (50) 119 Total income taxes $ 258 $ 180 $ 353 The difference between the U.S. federal statutory tax rate and the Company’s effective income tax rate was: 2023 2022 2021 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rates varying from U.S. statutory rate (2.9) (3.6) (2.3) State income taxes, net of federal benefit 2.0 1.0 1.6 Cost (benefit) of remitted and unremitted foreign earnings 1.7 2.0 0.8 Net change in valuation allowance 3.0 4.6 3.6 Statutory rate changes, deferred tax impact 0.1 0.3 1.0 Foreign derived intangible income (1.3) (1.6) (0.9) Other 1.2 (3.7) (0.5) Effective income tax rate 24.8 % 20.0 % 24.3 % As presented in the preceding table, the Company’s 2023 consolidated effective tax rate was 24.8%, as compared to 20.0% in 2022 and 24.3% in 2021. The higher effective tax rate for the year ended December 30, 2023 as compared to prior year was due primarily to a valuation allowance recorded in the fourth quarter of 2023 in conjunction with the separation of our North America cereal business. For the year ended December 31, 2022 the effective tax rate was favorably impacted by mark-to-market loss items and the resulting impact on mix of earnings. 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. As of December 30, 2023, approximately $800 million of unremitted earnings were considered indefinitely reinvested. The unrecognized deferred tax liability for these earnings is estimated at approximately $46 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 2023 and 2022 were $350 million and $363 million, respectively, with related valuation allowances at year-end 2023 and 2022 of $300 million and $263 million, respectively. Of the total carryforwards at year-end 2023, $20 million expire in 5 years or less, $61 million expire in 2027 and later, and $269 million do not expire. The following table provides an analysis of the Company’s deferred tax assets and liabilities as of year-end 2023 and 2022: Deferred tax Deferred tax (millions) 2023 2022 2023 2022 U.S. state income taxes $ — $ — $ 9 $ 27 Advertising and promotion-related 12 15 — — Wages and payroll taxes 15 19 — — Inventory valuation 12 19 — — Employee benefits 99 64 — — Operating loss, credit and other carryforwards 350 363 — — Research and development capitalization 40 22 — — Hedging transactions — — 8 37 Depreciation and asset disposals — — 177 286 Operating lease right-of-use assets — — 149 138 Operating lease liabilities 147 139 — — Trademarks and other intangibles — — 466 549 Deferred compensation 13 27 — — Stock options 43 28 — — Other 64 34 — — 795 730 809 1,037 Less valuation allowance (300) (263) — — Total deferred taxes $ 495 $ 467 $ 809 $ 1,037 Net deferred tax asset (liability) $ (314) $ (570) Classified in balance sheet as: Other assets $ 183 $ 190 Other liabilities (497) (760) * Net deferred tax asset (liability) $ (314) $ (570) *Other liabilities include $53 million reclassified to discontinued operations on the consolidated balance sheet at December 31, 2022. The change in valuation allowance reducing deferred tax assets was: (millions) 2023 2022 2021 Balance at beginning of year $ 263 $ 248 $ 192 Additions charged to income tax expense (a) 65 44 59 Reductions credited to income tax expense (34) (3) (6) Acquisition of noncontrolling interest — — 13 Currency translation adjustments 6 (26) (10) Balance at end of year $ 300 $ 263 $ 248 (a) During 2021, the Company increased the valuation allowance $20 million to fully reserve for net deferred tax assets of a foreign subsidiary. During 2023, the Company established a state valuation allowance of $21 million due to projected, perpetual separate company losses for Kellanova post separation from the North America cereal business. Additionally, in 2023 the Company established a valuation allowance of $18 million related to the sale of a 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 2023 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 2022. The Company is under examination for income and non-income tax filings in various state and foreign jurisdictions. As of December 30, 2023, the Company has classif ied $10 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 $3 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 December 30, 2023, December 31, 2022 and January 1, 2022. For the 2023 year, approximately $28 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods. (millions) 2023 2022 2021 Balance at beginning of year $ 36 $ 50 $ 65 Tax positions related to current year: Additions 6 6 5 Tax positions related to prior years: Additions 3 1 5 Reductions (10) (18) (13) Settlements (1) (1) (9) Lapses in statutes of limitation (2) (2) (3) Balance at end of year $ 32 $ 36 $ 50 During the year ended December 30, 2023, the Company recognized $2 million of tax related interest benefit and paid tax-related interest totaling $1 million, reducing the balance to $5 million at year-end. During the year ended December 31, 2022, the Company recognized $1 million of tax related interest, increasing the balance to $8 million at year-end. During the year ended January 1, 2022, the Company paid tax-related interest totaling $2 million and recognized $4 million of tax-related interest, increasing the balance to $7 million at year-end. |
DERIVATIVE INSTRUMENTS AND FAIR
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 30, 2023 | |
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 December 30, 2023 and December 31, 2022 were as follows: (millions) 2023 2022 Foreign currency exchange contracts $ 3,141 $ 2,502 Cross-currency contracts 1,707 1,983 Interest rate contracts 2,289 2,657 Commodity contracts 201 230 Total $ 7,338 $ 7,372 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 December 30, 2023 and December 31, 2022, 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 December 30, 2023 or December 31, 2022. The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 30, 2023 and December 31, 2022: Derivatives designated as hedging instruments 2023 2022 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 12 $ 12 $ — $ 88 $ 88 Other Assets — 4 4 — 36 36 Interest rate contracts (a): Other current assets — — — — 45 45 Other assets — — — — 25 25 Total assets $ — $ 16 $ 16 $ — $ 194 $ 194 Liabilities: Cross currency contracts: Other current liabilities $ — $ (17) $ (17) $ — $ — $ — Other liabilities — (15) (15) — — — Interest rate contracts (a): Other current liabilities — (44) (44) — — — Other liabilities — (45) (45) — (86) (86) Total liabilities $ — $ (121) $ (121) $ — $ (86) $ (86) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.1 billion as of December 30, 2023 and December 31, 2022, respectively. Derivatives not designated as hedging instruments 2023 2022 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 51 $ 51 $ — $ 74 $ 74 Other assets — 4 4 — 14 14 Interest rate contracts: Other current assets — 9 9 — 4 4 Other assets — 4 4 — 14 14 Commodity contracts: Other current assets 2 — 2 4 — 4 Total assets $ 2 $ 68 $ 70 $ 4 $ 106 $ 110 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (54) $ (54) $ — $ (50) $ (50) Other liabilities — (6) (6) — (9) (9) Interest rate contracts: Other current liabilities — (11) (11) — (7) (7) Other liabilities — (6) (6) — (18) (18) Commodity contracts: Other current liabilities (2) — (2) (2) — (2) Total liabilities $ (2) $ (77) $ (79) $ (2) $ (84) $ (86) The Company has designated a portion of its outstanding foreign currency denominated long-term debt as a net investment hedge of a portion of the Company’s investment in its subsidiaries foreign currency denominated net assets. The carrying value of this debt was $1.7 billion and $1.6 billion as of December 30, 2023 and December 31, 2022, respectively. The following amounts were recorded on the Consolidated Balance Sheet related to cumulative basis adjustments for existing fair value hedges as of December 30, 2023 and December 31, 2022. (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) December 30, December 31, December 30, December 31, Interest rate contracts Current maturities of long-term debt $ 655 $ 483 $ (8) $ (3) Interest rate contracts Long-term debt $ 1,666 $ 2,250 $ (43) $ (74) (a) The fair value adjustment related to current maturities of long-term debt includes $2 million and $(3) million from discontinued hedging relationships as of December 30, 2023, and December 31, 2022, respectively. The hedged long-term debt includes $3 million and $13 million of hedging adjustment on discontinued hedging relationships as of December 30, 2023 and December 31, 2022, 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 December 30, 2023 and December 31, 2022 would be adjusted as detailed in the following table: As of December 30, 2023 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 86 $ (84) $ — $ 2 Total liability derivatives $ (200) $ 84 $ 68 $ (48) As of December 31, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 304 $ (153) $ (33) $ 118 Total liability derivatives $ (172) $ 153 $ 19 $ — The Company settled certain interest rate contracts resulting in a net realized gains of approximately $85 million and $165 million during the years ended December 30, 2023 and December 31, 2022, respectively. These derivatives were accounted for as cash flow hedges and the related net gains were recorded in accumulated other comprehensive income and will be amortized to interest expense over the term of the related forecasted fixed rate debt, once issued. During the year ended December 31, 2022, the Company recognized an $18 million gain related to a portion of certain forward-starting interest rate swaps no longer designated as cash flow hedges due to changes in forecasted debt issuance. Additionally, the Company settled certain cross currency swaps resulting in a net gains of approximately $68 million and $37 million during the years ended December 30, 2023 and December 31, 2022, respectively. T hese cross currency swaps were accounted for as net investment hedges and the related net gain was recorded in accumulated other comprehensive income. The effect of derivative instruments on the Consolidated Statement of Income for the years ended December 30, 2023, December 31, 2022 and January 1, 2022: 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 2023 2022 2021 2023 2022 2021 Foreign currency denominated long-term debt $ (57) $ 164 $ 175 $ — $ — $ — Cross-currency contracts (71) 123 61 53 39 26 Interest expense Total $ (128) $ 287 $ 236 $ 53 $ 39 $ 26 Derivatives not designated as hedging instruments (millions) Location of gain Gain (loss) 2023 2022 2021 Foreign currency exchange contracts COGS $ (6) $ 35 $ (15) Foreign currency exchange contracts SGA expense (12) 4 13 Foreign currency exchange contracts OIE (10) (4) (4) Interest rate contracts Interest expense — 4 1 Commodity contracts COGS (110) 43 120 Total $ (138) $ 82 $ 115 The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended December 30, 2023, December 31, 2022 and January 1, 2022: December 30, 2023 December 31, 2022 January 1, 2022 (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 $ 303 $ 201 $ 205 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items (26) 89 14 Derivatives designated as hedging instruments 30 (85) (12) Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (9) 2 (22) During the next 12 months, the Company expects $10 million of net deferred losses reported in accumulated other comprehensive income (AOCI) at December 30, 2023 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 December 30, 2023 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 December 30, 2023 triggered by credit-risk-related contingent features. Other fair value measurements Available for sale securities The following is a summary of the carrying and market values of the Company's available for sale securities: 2023 2022 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ — $ — $ — $ 52 $ (5) $ 47 During the year ended December 30, 2023, the Company sold approximately $64 million of investments in level 2 corporate bonds. The resulting loss was approximately $3 million and recorded in Other income and (expense). Also during the year ended December 30, 2023, the Company purchased approximately $15 million in level 2 corporate bonds. During the year ended December 31, 2022, the Company sold approximately $19 million of investments in level 2 corporate bonds. The resulting loss was approximately $1 million and recorded in Other income and (expense). Also during the year ended December 31, 2022, the Company purchased approximately $17 million in level 2 corporate bonds. The market values of the Company's investments in level 2 corporate bonds are based on matrices or models from pricing vendors. Unrealized gains and losses were included in the Consolidated Statement of Comprehensive Income. Additionally, these investments are recorded within Other current assets and Other assets on the Consolidated Balance Sheet, based on the maturity of the individual security. 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. Equity investments were approximately $40 million as of December 30, 2023 and December 31, 2022, 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 $5.0 billion and $5.1 billion, respectively, as of December 30, 2023. The fair value and carrying value of the Company's long-term debt was $5.1 billion and $5.3 billion, respectively, as of December 31, 2022. 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, net of collateral already received from those counterparties. As of December 30, 2023, the concentration of credit risk to the Company was immaterial. 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 December 30, 2023, the Company posted $59 million related to reciprocal collateralization agreements. As of December 30, 2023, the Company posted $8 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 18% of consolidated trade receivables at December 30, 2023. Refer to Note 1 for disclosures regarding the Company’s accounting policies for derivative instruments. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 30, 2023 | |
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, data privacy, collective bargaining, 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. |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL DATA (unaudited) The following tables provide a summary of the quarterly consolidated financial data for the years ended December 30, 2023 and December 31, 2022. Net sales Gross profit (millions) 2023 2022 2023 2022 First $ 3,342 $ 3,057 $ 984 $ 998 Second 3,351 3,181 1,094 918 Third 3,255 3,251 1,110 948 Fourth 3,174 3,164 1,095 947 $ 13,122 $ 12,653 $ 4,283 $ 3,811 Net income (loss) from continuing operations Per share amounts from continuing operations (millions) 2023 2022 2023 2022 Basic Diluted Basic Diluted First $ 234 $ 323 $ 0.67 $ 0.67 $ 0.95 $ 0.94 Second 297 201 0.85 0.85 0.59 0.59 Third 199 235 0.58 0.57 0.68 0.68 Fourth 58 (28) 0.16 0.16 (0.08) (0.08) $ 788 $ 731 Income (loss) from discontinued operations, net of taxes Per share amounts from discontinued operations (millions) 2023 2022 2023 2022 Basic Diluted Basic Diluted First $ 68 $ 100 $ 0.20 $ 0.19 $ 0.29 $ 0.29 Second 64 125 0.19 0.18 0.37 0.36 Third 72 78 0.21 0.21 0.23 0.22 Fourth (28) (72) (0.08) (0.08) (0.21) (0.21) $ 176 $ 231 Net income (loss) attributable to Kellanova Net earnings per common share (millions) 2023 2022 2023 2022 Basic Diluted Basic Diluted First $ 298 $ 421 $ 0.87 $ 0.86 $ 1.24 $ 1.23 Second 355 327 1.04 1.03 0.96 0.95 Third 271 311 0.79 0.78 0.91 0.90 Fourth 27 (99) 0.08 0.08 (0.29) (0.29) $ 951 $ 960 Average shares outstanding 2023 2022 Basic Diluted Basic Diluted First 342 345 340 342 Second 343 345 339 342 Third 342 345 341 344 Fourth 342 344 342 345 Dividends paid per share during the last two years were: Quarter 2023 2022 First $ 0.59 $ 0.58 Second 0.59 0.58 Third 0.60 0.59 Fourth 0.56 0.59 $ 2.34 $ 2.34 |
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | REPORTABLE SEGMENTS Kellanova is the world’s second largest producer of crackers and a leading producer of cereal, savory snacks, and frozen foods. Additional product offerings include toaster pastries, cereal bars, veggie foods, and noodles. Kellanova 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. 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) 2023 2022 2021 Net sales from continuing operations North America $ 6,574 $ 6,330 $ 5,775 Europe 2,501 2,310 2,397 Latin America 1,265 1,089 962 AMEA 2,785 2,933 2,613 Total Reportable Segments 13,125 12,662 11,747 Corporate (3) (9) — Consolidated $ 13,122 $ 12,653 $ 11,747 Operating profit North America $ 1,024 $ 907 $ 932 Europe 357 329 350 Latin America 130 116 100 AMEA 270 252 246 Total Reportable Segments 1,781 1,604 1,628 Corporate (276) (393) (245) Consolidated $ 1,505 $ 1,211 $ 1,383 Depreciation and amortization North America $ 180 $ 187 $ 191 Europe 80 81 92 Latin America 35 34 25 AMEA 65 94 84 Total Reportable Segments 360 396 392 Corporate 6 8 3 Consolidated $ 366 $ 404 $ 395 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) 2023 2022 2021 Interest expense North America $ 1 $ 1 $ — Europe 68 20 4 Latin America 4 2 1 AMEA 23 22 17 Corporate 207 156 183 Consolidated $ 303 $ 201 $ 205 Income taxes Europe $ 42 $ 38 $ 48 Latin America 34 24 51 AMEA 45 42 40 Corporate & North America 137 76 214 Consolidated $ 258 $ 180 $ 353 Assets are reviewed by the CODM on a consolidated basis and therefore are not presented by operating segment. The CODM does review additions to property based on operating segment. (millions) 2023 2022 2021 Additions to property North America $ 249 $ 168 $ 237 Europe 122 107 102 Latin America 75 45 39 AMEA 102 69 73 Corporate 21 12 12 Consolidated $ 569 $ 401 $ 463 The Company’s largest customer, Wal-Mart Stores, Inc. and its affiliates, accounted for approximately 15% of consolidated net sales during 2023, and 16% and 17% of consolidated net sales from continuing operations during 2022 and 2021, respectively, comprised principally of sales within the United States. Supplemental geographic information is provided below for net sales to external customers and long-lived assets (property and right-of-use lease assets): (millions) 2023 2022 2021 Net sales from continuing operations United States $ 6,279 $ 6,061 $ 5,512 Nigeria 1,113 1,322 1,039 Poland 41 23 15 All other countries 5,689 5,247 5,181 Consolidated $ 13,122 $ 12,653 $ 11,747 Long-lived assets from continuing operations United States $ 1,847 $ 1,872 $ 1,867 Nigeria 84 153 167 Poland 390 320 316 All other countries 1,552 1,355 1,447 Consolidated $ 3,873 $ 3,700 $ 3,797 Supplemental product information is provided below for net sales from continuing operations to external customers: (millions) 2023 2022 2021 Snacks $ 8,105 $ 7,563 $ 6,807 Cereal 2,736 2,618 2,689 Frozen 1,095 1,097 1,106 Noodles and other 1,186 1,375 1,145 Consolidated $ 13,122 $ 12,653 $ 11,747 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT DATA | 12 Months Ended |
Dec. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Statement Data [Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT DATA Consolidated Statement of Income (millions) 2023 2022 2021 Research and development expense $ 116 $ 111 $ 117 Advertising expense $ 633 $ 549 $ 541 Consolidated Balance Sheet (millions) 2023 2022 Trade receivables $ 1,246 $ 1,251 Allowance for expected credit losses (16) (13) Refundable income taxes 74 82 Other receivables 264 212 Accounts receivable, net $ 1,568 $ 1,532 Raw materials, spare parts, and supplies $ 303 $ 313 Finished goods and materials in process $ 940 $ 1,026 Inventories $ 1,243 $ 1,339 Land $ 107 $ 94 Buildings 1,722 1,628 Machinery and equipment 4,690 4,500 Capitalized software 435 500 Construction in progress 591 528 Accumulated depreciation (4,333) (4,160) Property, net $ 3,212 $ 3,090 Other intangibles $ 2,084 $ 2,401 Accumulated amortization (154) (162) Other intangibles, net $ 1,930 $ 2,239 Pension $ 201 $ 320 Deferred income taxes 183 190 Nonpension post retirement benefits 311 228 Other 449 542 Other assets $ 1,144 $ 1,280 Accrued income taxes $ 57 $ 49 Customer deposits 85 150 Other current liabilities 655 642 Other current liabilities $ 797 $ 841 Income taxes payable $ 40 $ 37 Nonpension postretirement benefits 22 19 Other 399 434 Other liabilities $ 461 $ 490 Allowance for expected credit losses (millions) 2023 2022 2021 Balance at beginning of year $ 13 $ 15 $ 19 Additions (reductions) charged to expense 5 4 (1) Expected credit losses charged to reserve (2) (6) (3) Balance at end of year $ 16 $ 13 $ 15 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On February 8, 2024, the Company announced the following reorganization plans. The North America frozen supply chain network will be reorganized to drive increased productivity. The implementation of the reorganization plan is subject to satisfaction of any collective bargaining obligations. The reorganization will result in the expected closure of one production facility, with volume requirements being shifted to remaining production facilities across the Americas frozen network. The overall project is expected to be substantially completed by late 2024, with cost savings beginning to contribute to gross margin improvements in the second half of 2024 and reaching full-run rate in 2025. This project is expected to result in cumulative pretax charges of approximately $75 million. Cash costs are expected to be approximately $20 million. The Company currently anticipates employee-related costs totaling approximately $10 million, which will include severance and other termination benefits; and other cash costs totaling approximately $10 million, which will primarily consist of charges related to capital expenses. Non-cash costs are expected to be approximately $55 million and primarily consist of asset impairment, accelerated depreciation, and asset write-offs. The European cereal supply chain network is also proposed to be reorganized to drive efficiencies. The implementation of the reorganization plan is subject to satisfaction of any collective bargaining obligations and completion of consultation with impacted employees. The proposed reorganization will result in the expected closure of one production facility. The overall project is expected to be substantially completed by late 2026, with resulting efficiencies expected to begin contributing to gross margin improvements in late 2026. This proposed reorganization is expected to result in cumulative pretax charges of approximately $120 million. Cash costs are expected to be approximately $80 million across three years. The Company currently anticipates employee-related costs totaling approximately $50 million, which will include severance and other related benefits (subject to consultation); and other cash costs totaling approximately $30 million, which will primarily consist of charges related to capital expenses. Non-cash costs are expected to be approximately $40 million and primarily consist of asset impairment, accelerated depreciation, and asset write-offs. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of accounting [Policy Text Block] | The consolidated financial statements include the accounts of the Kellanova (the Company), formerly Kellogg Company, those of the subsidiaries that it controls due to ownership of a majority voting interest (Kellanova or the Company). On October 2, 2023, the Company completed the separation of its North America cereal business resulting in two independent companies, Kellanova and WK Kellogg Co. As a result of the distribution, Kellanova shareholders of record on September 21, 2023, received one share of WK Kellogg Co common stock for every four shares of Kellanova common stock. In accordance with applicable accounting guidance, the results of WK Kellogg Co are presented as discontinued operations in the consolidated statements of operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. Further, the Company reclassified the assets and liabilities of WK Kellogg Co as assets and liabilities of discontinued operations in the consolidated balance sheet as of December 31, 2022. The consolidated statements of comprehensive income, equity and cash flows are presented on a consolidated basis for both continuing operations and discontinued operations. All amounts, percentages and disclosures for all periods presented reflect only the continuing operations of Kellanova unless otherwise noted. See Note 2 for additional information. 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 2023, 2022 and 2021 fiscal years each contained 52 weeks and ended on December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Certain prior period amounts have been updated to conform to the current period presentation. |
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. The Company's critical estimates include those related to promotional expenditures, goodwill and other intangible assets, retirement benefits, and income taxes. Actual results could differ from those estimates and could be impacted from macroeconomic conditions. |
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 2023 and 2022 the Company did not have off-balance sheet credit exposure related to its customers. Please refer to Note 3 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 2023 or 2022. |
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. The reporting unit’s fair value is estimated using a combination of a market multiples and discounted cash flow methodologies. The market multiples approach is based on either sales or earnings before interest, taxes, depreciation and amortization for companies that are comparable to the Company’s reporting units. The discounted cash flow approach 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 establishes competitive market-based terms with our suppliers, regardless of whether they participate in supplier finance programs, which generally range from 0 to 150 days dependent on their respective industry and geography. 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 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 December 30, 2023, $825 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. As of December 31, 2022, $932 million of the Company’s outstanding payment obligations had been placed in the accounts payable tracking system. |
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 use 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 recorded in cost of goods sold (COGS) 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 accrued advertising and promotion. The Company classifies promotional expenditures 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 accrued advertising and promotion. |
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 18 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. 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 17 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 [Policy Text Block] | Accounting standards to be adopted in future periods Income Taxes: Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09 to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. It will take effect for public entities fiscal years beginning after December 15, 2024, with early adoption permitted.The Company is currently assessing the impact of any incremental disclosures required by this ASU and the planned timing of adoption. Segment Reporting: Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued ASU 2023-07, which focuses on enhancing reportable segment disclosures under Segment Reporting (Topic 280). This new standard is designed to enhance the transparency of significant segment expenses on an interim and annual basis. It will take effect for public entities fiscal years beginning after December 15, 2023, with the option for earlier adoption at any time before the specified date, with retrospective requirements. The Company is currently assessing the impact of any incremental disclosures required by this ASU and the planned timing of adoption. Accounting standards adopted during the period Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations. In September 2022, the FASB issued an ASU to improve the disclosures of supplier finance programs. Specifically, the ASU requires disclosure of key terms of the supplier finance programs and a rollforward of the related obligations. The amendments in this ASU do not affect the recognition, measurement, or financial statement presentation of obligations covered by supplier finance programs. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company has historically presented information regarding the nature and amount of outstanding Accounts Payable obligations confirmed into supplier finance programs within the Accounting Policies note of the financial statements. The Company adopted the ASU in the first quarter of 2023 and plans to include the rollforward information in the first quarter of 2024. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | (millions) 2023 2022 2021 Net sales $ 2,085 $ 2,662 $ 2,434 Cost of goods sold $ 1,387 $ 1,858 $ 1,692 Selling, general and administrative expense $ 479 $ 381 $ 373 Operating profit $ 219 $ 423 $ 369 Interest expense $ 26 $ 17 $ 18 Other income (expense), net $ 54 $ (111) $ 162 Income from discontinued operations before income taxes $ 247 $ 295 $ 513 Income taxes $ 71 $ 64 $ 121 Net income from discontinued operations, net of tax $ 176 $ 231 $ 392 The following table presents assets and liabilities that are classified as discontinued operations on the consolidated balance sheet as of December 31, 2022: (millions) Cash and cash equivalents $ — Accounts receivable, net $ 204 Inventories $ 429 Other current assets $ 5 Total current assets of discontinued operations $ 638 Property, net $ 699 Operating lease right-of-use assets $ 7 Goodwill $ 305 Other intangibles $ 57 Other assets $ 210 Total assets of discontinued operations $ 1,916 Accounts payable $ 405 Current operating lease liabilities $ 3 Accrued advertising and promotion $ 57 Accrued salaries and wages $ 52 Other current liabilities $ 31 Total current liabilities of discontinued operations $ 548 Operating lease liabilities $ 4 Deferred income taxes $ 53 Pension liability $ 116 Other non-current liabilities $ 10 Total liabilities of discontinued operations $ 731 |
Schedule of Disposal Groups Including Discontinued Operations Cash Flow Information | (millions) 2023 2022 2021 Depreciation and amortization $ 52 $ 74 $ 72 Additions to properties $ 107 $ 87 $ 90 Postretirement benefit plan expense (benefit) $ (53) $ 123 $ (143) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
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 January 1, 2022 $ 4,118 $ 350 $ 171 $ 827 $ 5,466 Currency translation adjustment (3) (22) 6 (66) (85) December 31, 2022 $ 4,115 $ 328 $ 177 $ 761 $ 5,381 Currency translation adjustment 1 8 14 (244) (222) December 30, 2023 $ 4,116 $ 336 $ 191 $ 517 $ 5,160 |
Schedule of Intangible Assets | Other intangible assets 2023 2022 (millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangibles subject to amortization (a) $ 334 $ (154) $ 180 $ 489 $ (162) $ 327 Intangibles not subject to amortization $ 1,750 $ — $ 1,750 $ 1,912 $ — $ 1,912 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Income (Loss) | (millions) December 30, 2023 December 31, 2022 Foreign currency translation adjustments $ (2,326) $ (2,111) Net investment hedges gain (loss) 186 282 Cash flow hedges — net deferred gain (loss) 143 150 Postretirement and postemployment benefits: Net experience gain (loss) 1 2 Prior service credit (cost) (45) (27) Available-for-sale securities unrealized net gain (loss) — (4) Total accumulated other comprehensive income (loss) $ (2,041) $ (1,708) |
LEASES AND OTHER COMMITMENTS (T
LEASES AND OTHER COMMITMENTS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Schedule of supplemental operating lease information | (millions) Year ended December 30, 2023 Year ended December 31, 2022 Year ended January 1, 2022 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 138 $ 121 $ 135 Right-of-use assets obtained in exchange for operating lease liabilities New leases $ 89 $ 84 $ 55 Modified leases $ 74 $ 27 $ 53 Weighted-average remaining lease term - operating leases 7 years 7 years Weighted-average discount rate - operating leases 3.6% 2.9% |
Operating leases future maturities | At December 30, 2023 future maturities of operating leases were as follows: (millions) Operating 2024 $ 139 2025 136 2026 109 2027 87 2028 62 2029 and beyond 208 Total minimum payments $ 741 Less interest (88) Present value of lease liabilities $ 653 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | (millions) 2023 2022 Principal Effective Principal Effective U.S. commercial paper $ — — % $ 330 4.46 % Bank borrowings 121 137 Total $ 121 $ 467 |
Schedule of Debt [Table Text Block] | The following table presents the components of subordinated long-term debt at year end December 30, 2023 and December 31, 2022: (millions) 2023 2022 4.50% $650 million U.S. Dollar Notes due 2046 $ 639 $ 639 5.25% $400 million U.S. Dollar Notes due 2033 397 — 7.45% $625 million U.S. Dollar Debentures due 2031 622 622 2.10% $500 million U.S. Dollar Notes due 2030 497 497 0.50% €300 million Euro Notes due 2029 329 317 4.30% $600 million U.S. Dollar Notes due 2028 552 539 3.40% $600 million U.S. Dollar Notes due 2027 598 597 3.25% $750 million U.S. Dollar Notes due 2026 747 745 1.25% €600 million Euro Notes due 2025 667 648 1.00% €600 million Euro Notes due 2024 655 617 2.65% $600 million U.S. Dollar Notes due 2023 — 547 2.75% $400 million U.S. Dollar Notes due 2023 — 210 Other 49 119 5,752 6,097 Less current maturities (663) (780) Balance at year end $ 5,089 $ 5,317 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Compensation Expense For Equity Programs And Related Tax Benefits Text Block [Table Text Block] | (millions) 2023 2022 2021 Pre-tax compensation expense $ 96 $ 100 $ 73 Related income tax benefit $ 25 $ 26 $ 19 |
Schedule of Cash and Tax Benefits Received Upon Exercise of Stock Options and Similar Instruments [Table Text Block] | (millions) 2023 2022 2021 Total cash received from option exercises and similar instruments (a) $ 60 $ 277 $ 63 Tax windfall (shortfall) classified as cash flow from operating activities (a) $ 3 $ 3 $ (3) (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting |
Summary of Restricted Stock Summary [Table Text Block] | Employee restricted stock units Shares (thousands) Weighted-average Non-vested, beginning of year (a) 1,661 $ 64 Granted 572 68 Vested (491) 65 Forfeited (359) 65 Performance share conversion 1,486 63 Awards transferred to WK Kellogg Co (529) 65 Adjustment for spin-off (b) 843 — Non-vested, end of year 3,183 $ 58 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting. (b) In connection with the spin-off of WK Kellogg Co, the modification of restricted stock units resulted in incremental expense totaling approximately $11 million to be amortized over the remaining vesting period of the award. Additionally, restricted stock unit activity for 2022 and 2021 is presented in the following table: Employee restricted stock units (a) 2022 2021 Shares (in thousands): Non-vested, beginning of year 1,786 1,736 Granted 709 727 Vested (619) (489) Forfeited (215) (188) Non-vested, end of year 1,661 1,786 Weighted-average exercise price: Non-vested, beginning of year $ 60 $ 61 Granted 67 58 Vested 57 63 Forfeited 62 60 Non-vested, end of year $ 64 $ 60 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting |
Schedule of Stock Option Valuation Model Assumptions for Grants [Table Text Block] | Stock option valuation model 2021 Weighted-average expected volatility 20.00 % Weighted-average expected term (years) 6.7 Weighted-average risk-free interest rate 0.96 % Dividend yield 3.90 % Weighted-average fair value of options granted $ 6.39 |
Share-based Payment Arrangement, Activity [Table Text Block] | Employee and director Shares Weighted- Weighted- Aggregate Outstanding, beginning of year (a) 10 $ 65 Granted — — Exercised (1) 59 Forfeitures and expirations (1) 60 Awards transferred to WK Kellogg Co (1) 66 Adjustment for spin-off (b) 2 Outstanding, end of year 9 55 4.5 $ 15 Exercisable, end of year 8 $ 59 4.3 $ 12 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting. (b) In connection with the spin-off of WK Kellogg Co, the modification of stock options resulted in incremental expense totaling approximately $10 million, of which $9 million was related to vested awards and was recognized immediately. The remaining expense will be amortized over the vesting period of the award. Additionally, option activity for the comparable prior year periods is presented in the following table: (millions, except per share data) (a) 2022 2021 Outstanding, beginning of year 15 14 Granted — 3 Exercised (4) (1) Forfeitures and expirations (1) (1) Outstanding, end of year 10 15 Exercisable, end of year 8 10 Weighted-average exercise price: Outstanding, beginning of year $ 64 $ 65 Granted — 58 Exercised 61 56 Forfeitures and expirations 63 66 Outstanding, end of year $ 65 $ 64 Exercisable, end of year $ 67 $ 66 (a) Activities prior to the spin-off remain unadjusted to ensure consistency with historical reporting. |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) - Pension | 12 Months Ended |
Dec. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Company Plan Benefit Expense [Table Text Block] | (millions) 2023 2022 Change in projected benefit obligation Beginning of year $ 2,877 $ 4,444 Service cost 17 20 Interest cost 149 109 Amendments 38 2 Actuarial (gain)loss 198 (1,119) Benefits paid (256) (430) Other — (1) Foreign currency adjustments 54 (148) End of year $ 3,077 $ 2,877 Change in plan assets Fair value beginning of year $ 2,589 $ 4,236 Actual return on plan assets 211 (1,059) Employer contributions 25 2 Plan participants’ contributions — 1 Benefits paid (238) (403) Other — — Foreign currency adjustments 63 (188) Fair value end of year $ 2,650 $ 2,589 Funded status $ (427) $ (288) Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 201 $ 320 Other current liabilities (15) (15) Pension liability (613) (593) Net amount recognized $ (427) $ (288) Amounts recognized in accumulated other comprehensive income consist of Prior service cost $ 71 $ 57 Net amount recognized $ 71 $ 57 |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | (millions) 2023 2022 Projected benefit obligation $ 1,844 $ 1,884 Accumulated benefit obligation $ 1,834 $ 1,875 Fair value of plan assets $ 1,224 $ 1,278 |
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) 2023 2022 Projected benefit obligation $ 1,924 $ 1,952 Accumulated benefit obligation $ 1,893 $ 1,923 Fair value of plan assets $ 1,299 $ 1,343 |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2023 2022 2021 Service cost $ 17 $ 20 $ 24 Interest cost 149 109 83 Expected return on plan assets (183) (215) (253) Amortization of unrecognized prior service cost 6 6 5 Other expense (income) — (1) — Recognized net (gain) loss 171 153 (20) Net periodic benefit cost 160 72 (161) Curtailment and special termination benefits — — (1) Pension (income) expense: Defined benefit plans 160 72 (162) Defined contribution plans 5 5 7 Total $ 165 $ 77 $ (155) |
Defined Benefit Plan, Assumptions [Table Text Block] | 2023 2022 2021 Discount rate 4.8 % 5.3 % 2.6 % Long-term rate of compensation increase 3.3 % 3.5 % 3.4 % The worldwide weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2023 2022 2021 Discount rate 5.3 % 2.2 % 1.3 % Discount rate - interest 5.2 % 2.1 % 1.0 % Long-term rate of compensation increase 3.5 % 3.5 % 3.5 % Long-term rate of return on plan assets 7.2 % 5.9 % 5.6 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Fair Value Hierarchy Level 2023 2022 Cash and cash equivalents (a) 1, 2 $ 60 $ 11 Corporate stock, common 1 53 145 Collective trusts: Equity 2 13 — Debt 2 38 302 Bonds, corporate 2 222 209 Bonds, government 2 94 81 Bonds, other 2 16 61 Buy-in annuity contract 3 839 173 Other (b) 2, 3 29 90 Sub-total $ 1,364 $ 1,072 Investments measured at net asset value (NAV) practical expedient (c) 1,286 $ 1,517 Total plan assets $ 2,650 $ 2,589 (a) Cash and cash equivalents includes Level 1 assets of $60 million and $16 million for 2023 and 2022, respectively, and Level 2 assets of $0 million and ($5) million for 2023 and 2022, respectively. (b) Other includes Level 2 assets of $3 million and $64 million for 2023 and 2022, respectively, and Level 3 assets of $26 million for 2023 and 2022. (c) 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 Other January 1, 2022 $ 269 $ — Additions — 27 Realized and unrealized loss (75) (1) Currency translation (21) — December 31, 2022 $ 173 $ 26 Additions 589 — Realized and unrealized loss 68 (1) Currency translation 9 1 December 30, 2023 $ 839 $ 26 |
NONPENSION POSTRETIREMENT AND_2
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Nonpension postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | (millions) 2023 2022 Change in accumulated benefit obligation Beginning of year $ 321 $ 423 Service cost 3 4 Interest cost 21 10 Actuarial (gain) loss (5) (92) Benefits paid (17) (22) Amendments (26) — Other 2 — Foreign currency adjustments — (2) End of year $ 299 $ 321 Change in plan assets Fair value beginning of year $ 529 $ 694 Actual return on plan assets 81 (141) Employer contributions 10 9 Benefits paid (29) (33) Other (4) — Fair value end of year $ 587 $ 529 Funded status $ 288 $ 208 Amounts recognized in the Consolidated Balance Sheet consist of Other assets $ 311 $ 228 Other current liabilities (1) (1) Other liabilities (22) (19) Net amount recognized $ 288 $ 208 Amounts recognized in accumulated other comprehensive income consist of Prior service credit (30) (32) Net amount recognized $ (30) $ (32) |
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) 2023 2022 Accumulated benefit obligation $ 23 $ 21 Fair value of plan assets $ — $ — |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2023 2022 2021 Service cost $ 3 $ 4 $ 4 Interest cost 21 10 8 Expected return on plan assets (51) (42) (35) Amortization of unrecognized prior service credit (4) (4) (4) Recognized net (gain) loss (29) 76 (60) Net periodic benefit expense (income) (60) 44 (87) Postretirement benefit expense (income): Defined benefit plans (60) 44 (87) Defined contribution plans 15 13 13 Total $ (45) $ 57 $ (74) |
Defined Benefit Plan, Assumptions [Table Text Block] | 2023 2022 2021 Discount rate 5.1 % 5.5 % 2.9 % The weighted-average actuarial assumptions used to determine annual net periodic benefit cost were: 2023 2022 2021 Discount rate 5.5 % 2.8 % 2.5 % Discount rate - interest 5.3 % 2.3 % 1.8 % Long-term rate of return on plan assets 8.0 % 7.0 % 6.3 % |
Schedule of Allocation of Plan Assets [Table Text Block] | (millions) Fair Value Hierarchy Level 2023 2022 Cash and cash equivalents 1 $ 1 $ — Corporate stock, common 1 — 74 Mutual funds: Equity 2 7 16 Bonds, corporate 2 64 72 Bonds, government 2 16 29 Bonds, other 2 4 4 Sub-total $ 92 $ 195 Investments measured at net asset value (NAV) practical expedient (a) 495 $ 334 Total plan assets $ 587 $ 529 (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) 2023 2022 Change in accumulated benefit obligation Beginning of year $ 29 $ 37 Service cost 2 2 Interest cost 1 1 Actuarial (gain)loss — (6) Benefits paid (2) (5) End of year $ 30 $ 29 Funded status $ (30) $ (29) Amounts recognized in the Consolidated Balance Sheet consist of Other current liabilities $ (5) $ (6) Other liabilities (25) (23) Net amount recognized $ (30) $ (29) Amounts recognized in accumulated other comprehensive income consist of Net prior service cost $ — $ 2 Net experience gain (11) (18) Net amount recognized $ (11) $ (16) |
Schedule of Net Benefit Costs [Table Text Block] | (millions) 2023 2022 2021 Service cost $ 2 $ 2 $ 2 Interest cost 1 1 — Amortization of unrecognized prior service cost 1 1 1 Recognized net loss (2) (1) (1) Net periodic benefit cost $ 2 $ 3 $ 2 Settlement cost — (2) (1) Postemployment benefit expense $ 2 $ 1 $ 1 |
Schedule of Expected Benefit Payments [Table Text Block] | (millions) Postretirement Postemployment 2024 $ 25 $ 5 2025 25 5 2026 24 4 2027 24 4 2028 24 4 2029-2033 115 15 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block] | (millions) 2023 2022 2021 Income before income taxes United States $ 577 $ 360 $ 693 Foreign 463 542 759 1,040 902 1,452 Income taxes Currently payable Federal 153 110 101 State 29 19 27 Foreign 114 101 106 296 230 234 Deferred Federal (49) (43) 37 State 23 (6) 1 Foreign (12) (1) 81 (38) (50) 119 Total income taxes $ 258 $ 180 $ 353 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2023 2022 2021 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % Foreign rates varying from U.S. statutory rate (2.9) (3.6) (2.3) State income taxes, net of federal benefit 2.0 1.0 1.6 Cost (benefit) of remitted and unremitted foreign earnings 1.7 2.0 0.8 Net change in valuation allowance 3.0 4.6 3.6 Statutory rate changes, deferred tax impact 0.1 0.3 1.0 Foreign derived intangible income (1.3) (1.6) (0.9) Other 1.2 (3.7) (0.5) Effective income tax rate 24.8 % 20.0 % 24.3 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax Deferred tax (millions) 2023 2022 2023 2022 U.S. state income taxes $ — $ — $ 9 $ 27 Advertising and promotion-related 12 15 — — Wages and payroll taxes 15 19 — — Inventory valuation 12 19 — — Employee benefits 99 64 — — Operating loss, credit and other carryforwards 350 363 — — Research and development capitalization 40 22 — — Hedging transactions — — 8 37 Depreciation and asset disposals — — 177 286 Operating lease right-of-use assets — — 149 138 Operating lease liabilities 147 139 — — Trademarks and other intangibles — — 466 549 Deferred compensation 13 27 — — Stock options 43 28 — — Other 64 34 — — 795 730 809 1,037 Less valuation allowance (300) (263) — — Total deferred taxes $ 495 $ 467 $ 809 $ 1,037 Net deferred tax asset (liability) $ (314) $ (570) Classified in balance sheet as: Other assets $ 183 $ 190 Other liabilities (497) (760) * Net deferred tax asset (liability) $ (314) $ (570) |
Summary of Valuation Allowance [Table Text Block] | (millions) 2023 2022 2021 Balance at beginning of year $ 263 $ 248 $ 192 Additions charged to income tax expense (a) 65 44 59 Reductions credited to income tax expense (34) (3) (6) Acquisition of noncontrolling interest — — 13 Currency translation adjustments 6 (26) (10) Balance at end of year $ 300 $ 263 $ 248 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | (millions) 2023 2022 2021 Balance at beginning of year $ 36 $ 50 $ 65 Tax positions related to current year: Additions 6 6 5 Tax positions related to prior years: Additions 3 1 5 Reductions (10) (18) (13) Settlements (1) (1) (9) Lapses in statutes of limitation (2) (2) (3) Balance at end of year $ 32 $ 36 $ 50 |
DERIVATIVE INSTRUMENTS AND FA_2
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Total Notional Amounts of the Company's Derivative Instruments | (millions) 2023 2022 Foreign currency exchange contracts $ 3,141 $ 2,502 Cross-currency contracts 1,707 1,983 Interest rate contracts 2,289 2,657 Commodity contracts 201 230 Total $ 7,338 $ 7,372 |
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 December 30, 2023 and December 31, 2022: Derivatives designated as hedging instruments 2023 2022 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Cross currency contracts: Other current assets $ — $ 12 $ 12 $ — $ 88 $ 88 Other Assets — 4 4 — 36 36 Interest rate contracts (a): Other current assets — — — — 45 45 Other assets — — — — 25 25 Total assets $ — $ 16 $ 16 $ — $ 194 $ 194 Liabilities: Cross currency contracts: Other current liabilities $ — $ (17) $ (17) $ — $ — $ — Other liabilities — (15) (15) — — — Interest rate contracts (a): Other current liabilities — (44) (44) — — — Other liabilities — (45) (45) — (86) (86) Total liabilities $ — $ (121) $ (121) $ — $ (86) $ (86) (a) The fair value of the related hedged portion of the Company’s long-term debt, a level 2 liability, was $1.1 billion as of December 30, 2023 and December 31, 2022, respectively. Derivatives not designated as hedging instruments 2023 2022 (millions) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Foreign currency exchange contracts: Other current assets $ — $ 51 $ 51 $ — $ 74 $ 74 Other assets — 4 4 — 14 14 Interest rate contracts: Other current assets — 9 9 — 4 4 Other assets — 4 4 — 14 14 Commodity contracts: Other current assets 2 — 2 4 — 4 Total assets $ 2 $ 68 $ 70 $ 4 $ 106 $ 110 Liabilities: Foreign currency exchange contracts: Other current liabilities $ — $ (54) $ (54) $ — $ (50) $ (50) Other liabilities — (6) (6) — (9) (9) Interest rate contracts: Other current liabilities — (11) (11) — (7) (7) Other liabilities — (6) (6) — (18) (18) Commodity contracts: Other current liabilities (2) — (2) (2) — (2) Total liabilities $ (2) $ (77) $ (79) $ (2) $ (84) $ (86) |
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 December 30, 2023 and December 31, 2022. (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) December 30, December 31, December 30, December 31, Interest rate contracts Current maturities of long-term debt $ 655 $ 483 $ (8) $ (3) Interest rate contracts Long-term debt $ 1,666 $ 2,250 $ (43) $ (74) (a) The fair value adjustment related to current maturities of long-term debt includes $2 million and $(3) million from discontinued hedging relationships as of December 30, 2023, and December 31, 2022, respectively. The hedged long-term debt includes $3 million and $13 million of hedging adjustment on discontinued hedging relationships as of December 30, 2023 and December 31, 2022, respectively. |
Offsetting Assets | As of December 30, 2023 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 86 $ (84) $ — $ 2 Total liability derivatives $ (200) $ 84 $ 68 $ (48) As of December 31, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 304 $ (153) $ (33) $ 118 Total liability derivatives $ (172) $ 153 $ 19 $ — |
Offsetting Liabilities | As of December 30, 2023 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 86 $ (84) $ — $ 2 Total liability derivatives $ (200) $ 84 $ 68 $ (48) As of December 31, 2022 Gross Amounts Not Amounts Financial Cash Net Total asset derivatives $ 304 $ (153) $ (33) $ 118 Total liability derivatives $ (172) $ 153 $ 19 $ — |
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 December 30, 2023, December 31, 2022 and January 1, 2022: 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 2023 2022 2021 2023 2022 2021 Foreign currency denominated long-term debt $ (57) $ 164 $ 175 $ — $ — $ — Cross-currency contracts (71) 123 61 53 39 26 Interest expense Total $ (128) $ 287 $ 236 $ 53 $ 39 $ 26 Derivatives not designated as hedging instruments (millions) Location of gain Gain (loss) 2023 2022 2021 Foreign currency exchange contracts COGS $ (6) $ 35 $ (15) Foreign currency exchange contracts SGA expense (12) 4 13 Foreign currency exchange contracts OIE (10) (4) (4) Interest rate contracts Interest expense — 4 1 Commodity contracts COGS (110) 43 120 Total $ (138) $ 82 $ 115 The effect of fair value and cash flow hedge accounting on the Consolidated Income Statement for the years ended December 30, 2023, December 31, 2022 and January 1, 2022: December 30, 2023 December 31, 2022 January 1, 2022 (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 $ 303 $ 201 $ 205 Gain (loss) on fair value hedging relationships: Interest contracts: Hedged items (26) 89 14 Derivatives designated as hedging instruments 30 (85) (12) Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income (9) 2 (22) |
Available-for-sale securities | The following is a summary of the carrying and market values of the Company's available for sale securities: 2023 2022 (millions) Cost Unrealized Gain (Loss) Market Value Cost Unrealized Gain/(Loss) Market Value Corporate Bonds $ — $ — $ — $ 52 $ (5) $ 47 |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Financial Data Net Sales And Gross Profit | Net sales Gross profit (millions) 2023 2022 2023 2022 First $ 3,342 $ 3,057 $ 984 $ 998 Second 3,351 3,181 1,094 918 Third 3,255 3,251 1,110 948 Fourth 3,174 3,164 1,095 947 $ 13,122 $ 12,653 $ 4,283 $ 3,811 |
Schedule Of Quarterly Financial Data Net Income And Earnings Per Share from continuing operations | Net income (loss) from continuing operations Per share amounts from continuing operations (millions) 2023 2022 2023 2022 Basic Diluted Basic Diluted First $ 234 $ 323 $ 0.67 $ 0.67 $ 0.95 $ 0.94 Second 297 201 0.85 0.85 0.59 0.59 Third 199 235 0.58 0.57 0.68 0.68 Fourth 58 (28) 0.16 0.16 (0.08) (0.08) $ 788 $ 731 |
Schedule Of Quarterly Financial Data Net Income And Earnings Per Share From Discontinued Operations | Income (loss) from discontinued operations, net of taxes Per share amounts from discontinued operations (millions) 2023 2022 2023 2022 Basic Diluted Basic Diluted First $ 68 $ 100 $ 0.20 $ 0.19 $ 0.29 $ 0.29 Second 64 125 0.19 0.18 0.37 0.36 Third 72 78 0.21 0.21 0.23 0.22 Fourth (28) (72) (0.08) (0.08) (0.21) (0.21) $ 176 $ 231 |
Schedule Of Quarterly Financial Data Net Income And Earnings Per Share attributable to Parent | Net income (loss) attributable to Kellanova Net earnings per common share (millions) 2023 2022 2023 2022 Basic Diluted Basic Diluted First $ 298 $ 421 $ 0.87 $ 0.86 $ 1.24 $ 1.23 Second 355 327 1.04 1.03 0.96 0.95 Third 271 311 0.79 0.78 0.91 0.90 Fourth 27 (99) 0.08 0.08 (0.29) (0.29) $ 951 $ 960 |
Schedule Of Quarterly Financial Data Average Shares Outstanding | Average shares outstanding 2023 2022 Basic Diluted Basic Diluted First 342 345 340 342 Second 343 345 339 342 Third 342 345 341 344 Fourth 342 344 342 345 |
Schedule of Quarterly Financial Data Dividends Paid Per Share | Quarter 2023 2022 First $ 0.59 $ 0.58 Second 0.59 0.58 Third 0.60 0.59 Fourth 0.56 0.59 $ 2.34 $ 2.34 |
REPORTABLE SEGMENTS (Tables)
REPORTABLE SEGMENTS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (millions) 2023 2022 2021 Net sales from continuing operations North America $ 6,574 $ 6,330 $ 5,775 Europe 2,501 2,310 2,397 Latin America 1,265 1,089 962 AMEA 2,785 2,933 2,613 Total Reportable Segments 13,125 12,662 11,747 Corporate (3) (9) — Consolidated $ 13,122 $ 12,653 $ 11,747 Operating profit North America $ 1,024 $ 907 $ 932 Europe 357 329 350 Latin America 130 116 100 AMEA 270 252 246 Total Reportable Segments 1,781 1,604 1,628 Corporate (276) (393) (245) Consolidated $ 1,505 $ 1,211 $ 1,383 Depreciation and amortization North America $ 180 $ 187 $ 191 Europe 80 81 92 Latin America 35 34 25 AMEA 65 94 84 Total Reportable Segments 360 396 392 Corporate 6 8 3 Consolidated $ 366 $ 404 $ 395 |
Schedule of Interest Expense and Income Tax Expense by Segment [Table Text Block] | (millions) 2023 2022 2021 Interest expense North America $ 1 $ 1 $ — Europe 68 20 4 Latin America 4 2 1 AMEA 23 22 17 Corporate 207 156 183 Consolidated $ 303 $ 201 $ 205 Income taxes Europe $ 42 $ 38 $ 48 Latin America 34 24 51 AMEA 45 42 40 Corporate & North America 137 76 214 Consolidated $ 258 $ 180 $ 353 |
Schedule of Additions to Long Lived Assets by Segment [Table Text Block] | (millions) 2023 2022 2021 Additions to property North America $ 249 $ 168 $ 237 Europe 122 107 102 Latin America 75 45 39 AMEA 102 69 73 Corporate 21 12 12 Consolidated $ 569 $ 401 $ 463 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | (millions) 2023 2022 2021 Net sales from continuing operations United States $ 6,279 $ 6,061 $ 5,512 Nigeria 1,113 1,322 1,039 Poland 41 23 15 All other countries 5,689 5,247 5,181 Consolidated $ 13,122 $ 12,653 $ 11,747 Long-lived assets from continuing operations United States $ 1,847 $ 1,872 $ 1,867 Nigeria 84 153 167 Poland 390 320 316 All other countries 1,552 1,355 1,447 Consolidated $ 3,873 $ 3,700 $ 3,797 |
Revenue from External Customers by Products and Services [Table Text Block] | (millions) 2023 2022 2021 Snacks $ 8,105 $ 7,563 $ 6,807 Cereal 2,736 2,618 2,689 Frozen 1,095 1,097 1,106 Noodles and other 1,186 1,375 1,145 Consolidated $ 13,122 $ 12,653 $ 11,747 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT DATA (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Financial Data Consolidated Statement Of Income [Table Text Block] | Consolidated Statement of Income (millions) 2023 2022 2021 Research and development expense $ 116 $ 111 $ 117 Advertising expense $ 633 $ 549 $ 541 |
Supplemental Financial Data Consolidated Balance Sheet [Table Text Block] | Consolidated Balance Sheet (millions) 2023 2022 Trade receivables $ 1,246 $ 1,251 Allowance for expected credit losses (16) (13) Refundable income taxes 74 82 Other receivables 264 212 Accounts receivable, net $ 1,568 $ 1,532 Raw materials, spare parts, and supplies $ 303 $ 313 Finished goods and materials in process $ 940 $ 1,026 Inventories $ 1,243 $ 1,339 Land $ 107 $ 94 Buildings 1,722 1,628 Machinery and equipment 4,690 4,500 Capitalized software 435 500 Construction in progress 591 528 Accumulated depreciation (4,333) (4,160) Property, net $ 3,212 $ 3,090 Other intangibles $ 2,084 $ 2,401 Accumulated amortization (154) (162) Other intangibles, net $ 1,930 $ 2,239 Pension $ 201 $ 320 Deferred income taxes 183 190 Nonpension post retirement benefits 311 228 Other 449 542 Other assets $ 1,144 $ 1,280 Accrued income taxes $ 57 $ 49 Customer deposits 85 150 Other current liabilities 655 642 Other current liabilities $ 797 $ 841 Income taxes payable $ 40 $ 37 Nonpension postretirement benefits 22 19 Other 399 434 Other liabilities $ 461 $ 490 |
Supplemental Financial Data Allowance For Doubtful Accounts [Table Text Block] | Allowance for expected credit losses (millions) 2023 2022 2021 Balance at beginning of year $ 13 $ 15 $ 19 Additions (reductions) charged to expense 5 4 (1) Expected credit losses charged to reserve (2) (6) (3) Balance at end of year $ 16 $ 13 $ 15 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies and New Accounting Standards [Line Items] | ||
Income tax examination percentage likelihood of being realized upon settlement | 50% | |
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 | $ 825 | $ 932 |
Minimum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Operating lease, term of contract | 12 months | |
Operating Lease, remaining lease term | 1 year | |
Maximum | ||
Accounting Policies and New Accounting Standards [Line Items] | ||
Operating Lease, remaining lease term | 17 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 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 29, 2023 | Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Disposal Group, Including Discontinued Operation, Net Sales | $ 2,085 | $ 2,662 | $ 2,434 | |||||||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 1,387 | 1,858 | 1,692 | |||||||||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 479 | 381 | 373 | |||||||||
Disposal Group, Including Discontinued Operation, Operating Profit | 219 | 423 | 369 | |||||||||
Disposal Group, Including Discontinued Operation, Interest Expense | 26 | 17 | 18 | |||||||||
Disposal Group, Including Discontinued Operation, Other Income | 54 | 162 | ||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | (111) | |||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 247 | 295 | 513 | |||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 71 | 64 | 121 | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 176 | 231 | 392 | |||||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | $ 0 | 0 | ||||||||||
Disposal Group, Including Discontinued Operation, Accounts Receivable, Net | 204 | 204 | ||||||||||
Disposal Group, Including Discontinued Operation, Inventories | 429 | 429 | ||||||||||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 5 | 5 | ||||||||||
Current assets of discontinued operations | $ 0 | 638 | 0 | 638 | ||||||||
Disposal Group, Including Discontinued Operation, Property, Noncurrent | 699 | 699 | ||||||||||
Disposal Group Including Discontinued Operation Operating Lease Right-of-Use Assets | 7 | 7 | ||||||||||
Disposal Group, Including Discontinued Operation, Goodwill, Noncurrent | 305 | 305 | ||||||||||
Disposal Group, Including Discontinued Operation, Other Intangibles, Noncurrent | 57 | 57 | ||||||||||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 210 | 210 | ||||||||||
Total assets of discontinued operations | 1,916 | 1,916 | ||||||||||
Disposal Group, Including Discontinued Operation, Accounts Payable, Current | 405 | 405 | ||||||||||
Disposal Operating Lease, Liability, Current | 3 | 3 | ||||||||||
Disposal Group, Including Discontinued Operation, Accrued Advertising and Promotion, Current | 57 | 57 | ||||||||||
Disposal Group, Including Discontinued Operation, Accrued salaries and wages, Current | 52 | 52 | ||||||||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 31 | 31 | ||||||||||
Current liabilities of discontinued operations | 0 | 548 | 0 | 548 | ||||||||
Disposal Group, Including Discontinued Operation, Operating Lease, Liability, Noncurrent | 4 | 4 | ||||||||||
Disposal Group, Including Discontinued Operation, Deferred Income Tax Liabilities | 53 | 53 | ||||||||||
Disposal Group, Including Discontinued Operation, Pension Plan Liabilities | 116 | 116 | ||||||||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent | 10 | 10 | ||||||||||
Disposal Group, Including Discontinued Operation, Liabilities | 731 | 731 | ||||||||||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 52 | 74 | 72 | |||||||||
Capital Expenditure, Discontinued Operations | 107 | 87 | 90 | |||||||||
Disposal Group, Including Discontinued Operation, Postretirement benefit plan expense (benefit) | (53) | 123 | (143) | |||||||||
Disposal Group, Including Discontinued Operation, Transition Services Agreement Cost | 52 | |||||||||||
Net sales | 3,174 | $ 3,255 | $ 3,351 | $ 3,342 | 3,164 | $ 3,251 | $ 3,181 | $ 3,057 | 13,122 | 12,653 | 11,747 | |
Cost of goods sold | 8,839 | 8,842 | $ 7,929 | |||||||||
WK Kellogg Co | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net sales | 18 | |||||||||||
Cost of goods sold | 16 | |||||||||||
SGA | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Disposal Group, Including Discontinued Operation, Transition Services Agreement Cost | 15 | |||||||||||
Cost of Goods and Service, Product and Service Benchmark | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Disposal Group, Including Discontinued Operation, Transition Services Agreement Cost | 37 | |||||||||||
2.65% U.S. Dollar Notes Due 2023 | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 2.65% | |||||||||||
Long-term Debt, Gross | $ 550 | $ 0 | $ 547 | $ 0 | $ 547 | |||||||
Revolving Credit Facility | Line of Credit | WK Kellogg Co | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Debt, Long-Term and Short-Term, Combined Amount | 664 | |||||||||||
Payments of Dividends | $ 663 |
SALE OF ACCOUNTS RECEIVABLE (De
SALE OF ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Monetization Program | Other Income (Expense), Net | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Gain (Loss) on Sale of Accounts Receivable | $ (41) | $ (16) | $ (6) |
Monetization Program | Maximum | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfers Of Accounts Receivable Agreements | 975 | 920 | |
Monetization Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | 697 | 609 | |
Kellogg Foreign Subsidiaries Program | Sold And Outstanding | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Transfer of Accounts Receivable Agreements | $ 8 | $ 31 |
DIVESTITURE (Details)
DIVESTITURE (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 29, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss on Russia Divestiture | $ 113 | $ 0 | $ 0 | |
Europe | Russia | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sales as a percentage of consolidated net sales | 1% | |||
Fair Value, Net Asset (Liability) | $ 65 | |||
Loss on Russia Divestiture | $ (113) |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES AND DIVESTITURES - West Africa Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Foreign currency translation adjustments | $ (2,326) | $ (2,111) | $ (2,326) | $ (2,111) | |||||||
Net sales | 3,174 | $ 3,255 | $ 3,351 | $ 3,342 | $ 3,164 | $ 3,251 | $ 3,181 | $ 3,057 | 13,122 | 12,653 | $ 11,747 |
Tolaram Africa Foods (TAF) PTE LTD | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Net sales | 796 | $ 900 | |||||||||
Tolaram Africa Foods (TAF) PTE LTD | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Foreign currency translation adjustments | $ 141 | $ 113 | $ 141 | ||||||||
Equity method investment ownership percentage | 50% | 50% | |||||||||
TAF Investment in Affiliated Food Manufacturer | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity method investment ownership percentage | 49% | 49% |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 5,381 | $ 5,466 |
Goodwill, Currency Translation Adjustments | (222) | (85) |
Goodwill | 5,160 | 5,381 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill | 4,115 | 4,118 |
Goodwill, Currency Translation Adjustments | 1 | (3) |
Goodwill | 4,116 | 4,115 |
Europe | ||
Goodwill [Roll Forward] | ||
Goodwill | 328 | 350 |
Goodwill, Currency Translation Adjustments | 8 | (22) |
Goodwill | 336 | 328 |
Latin America | ||
Goodwill [Roll Forward] | ||
Goodwill | 177 | 171 |
Goodwill, Currency Translation Adjustments | 14 | 6 |
Goodwill | 191 | 177 |
AMEA | ||
Goodwill [Roll Forward] | ||
Goodwill | 761 | 827 |
Goodwill, Currency Translation Adjustments | (244) | (66) |
Goodwill | $ 517 | $ 761 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Other intangible assets (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $ 334 | $ 489 |
Accumulated amortization | (154) | (162) |
Finite-Lived Intangible Assets, Net | 180 | 327 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangibles not subject to amortization, gross | 1,750 | 1,912 |
Intangibles not subject to amortization, accumulated amortization | 0 | 0 |
Intangibles not subject to amortization, net | 1,750 | $ 1,912 |
Estimated aggregate annual amortization expense for next twelve months | 24 | |
Estimated aggregate annual amortization expense for year two | 24 | |
Estimated aggregate annual amortization expense for year three | 24 | |
Estimated aggregate annual amortization expense for year four | 24 | |
Estimated aggregate annual amortization expense for year five | $ 24 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Annual Impairment Testing (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill and other intangible assets | $ 7,000 | |
Other intangible assets excluding goodwill | $ 1,750 | $ 1,912 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other intangibles, net | |
North America | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill) | $ 34 | |
Pringles and cracker related trademarks | North America | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets excluding goodwill | 1,600 | |
Snacks category | North America | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Other intangible assets excluding goodwill | $ 150 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.9 | 2.9 | 10.6 |
Common stock repurchased | $ 170 | $ 300 | $ 240 |
2020 share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | 1,500 | ||
Common stock repurchases (in shares) | 5 | 4 | |
Common stock repurchased | $ 300 | $ 240 | |
2022 share repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 1,500 | ||
Common stock repurchases (in shares) | 3 | ||
Common stock repurchased | $ 170 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,300 |
EQUITY - Summary of Accumulated
EQUITY - Summary of Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (2,326) | $ (2,111) |
Net investment hedges gain (loss) | 186 | 282 |
Cash flow hedges — net deferred gain (loss) | 143 | 150 |
Postretirement and postemployment benefits: | ||
Net experience gain (loss) | 1 | 2 |
Prior service credit (cost) | (45) | (27) |
Total accumulated other comprehensive income (loss) | ||
AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax | 0 | (4) |
Accumulated other comprehensive income (loss) | $ (2,041) | $ (1,708) |
LEASES AND OTHER COMMITMENTS -
LEASES AND OTHER COMMITMENTS - Schedule of Supplemental Operating Lease Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Operating lease cost | $ 137 | $ 132 | $ 136 |
LEASES AND OTHER COMMITMENTS _2
LEASES AND OTHER COMMITMENTS - Supplemental Operating Leases Information Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Operating lease, payments | $ 138 | $ 121 | $ 135 |
Right-of-use asset obtained in exchange for operating lease liability, new leases | 89 | 84 | 55 |
Right-of-use asset obtained in exchange for operating lease liability, modified leases | $ 74 | $ 27 | $ 53 |
Operating lease, weighted average remaining lease term | 7 years | 7 years | |
Operating lease, weighted average discount rate, percent | 3.60% | 2.90% |
LEASES AND OTHER COMMITMENTS _3
LEASES AND OTHER COMMITMENTS - Operating Leases Future Maturities Table (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Leases [Abstract] | |
Operating leases, 2024 | $ 139 |
Operating leases, 2025 | 136 |
Operating leases, 2026 | 109 |
Operating leases, 2027 | 87 |
Operating leases, 2028 | 62 |
Operating leases, 2029 and beyond | 208 |
Total minimum payments | 741 |
Interest | (88) |
Present value of lease liabilities | $ 653 |
LEASES AND OTHER COMMITMENTS _4
LEASES AND OTHER COMMITMENTS - Operating Leases Future Maturities Table Narrative (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Leases [Abstract] | |
Minimum lease payments for real-estate leases signed but not yet commenced | $ 40 |
DEBT - Components of Notes Paya
DEBT - Components of Notes Payable (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Components of Notes Payable | ||
Notes payable | $ 121 | $ 467 |
U.S. Commercial Paper | ||
Components of Notes Payable | ||
Notes payable | $ 0 | $ 330 |
Debt Instrument, Interest Rate, Effective Percentage | 0% | 4.46% |
Bank Borrowings | ||
Components of Notes Payable | ||
Notes payable | $ 121 | $ 137 |
DEBT - Schedule of Long-term De
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Sep. 29, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Other long-term debt | $ 49 | $ 119 | |
Long-term debt, including current maturities of long-term debt | 5,752 | 6,097 | |
Long-term Debt, Current Maturities | (663) | (780) | |
Long-term Debt, Excluding Current Maturities | 5,089 | 5,317 | |
4.5% U.S. Dollar Notes Due 2046 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 639 | 639 | |
5.25% U..S Dollar Notes Due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 397 | 0 | |
7.45% U.S. Dollar Debentures Due 2031 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 622 | 622 | |
2.10% U.S. Dollar Notes Due 2030 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 497 | 497 | |
0.50% Euro Note Due 2029 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 329 | 317 | |
4.30% U.S. Dollar Notes Due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 552 | 539 | |
3.40% U.S. Dollar Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 598 | 597 | |
3.25% U.S. Dollar Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 747 | 745 | |
1.25% Euro Note Due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 667 | 648 | |
1.00% Euro Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 655 | 617 | |
2.65% U.S. Dollar Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 0 | $ 550 | 547 |
2.75% U.S. Dollar Note Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 0 | $ 210 |
DEBT - Debt Redemption Narrativ
DEBT - Debt Redemption Narrative (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 01, 2023 USD ($) | Apr. 01, 2023 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Nov. 30, 2022 EUR (€) Rate | |
Debt Instrument [Line Items] | ||||||
Long-term Debt, Excluding Current Maturities | $ 5,089 | $ 5,317 | ||||
Notional amount of derivatives | 7,338 | 7,372 | ||||
Unrealized gain (loss) on cash flow hedges, pre-tax | (19) | 221 | $ 38 | |||
Cash Flow hedges | Interest expense | ||||||
Debt Instrument [Line Items] | ||||||
Unrealized gain (loss) on cash flow hedges, pre-tax | $ 85 | $ 165 | ||||
.80% Euro Notes Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | Rate | 0.80% | |||||
Debt Instrument, Face Amount | € | € 600 | |||||
5.25% U..S Dollar Notes Due 2033 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 5.25% | |||||
Debt Instrument, Face Amount | $ 400 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.06% | |||||
Proceeds from Debt, Net of Issuance Costs | 396 | |||||
Notional amount of derivatives | 400 | |||||
5.25% U..S Dollar Notes Due 2033 | Cash Flow hedges | Interest expense | ||||||
Debt Instrument [Line Items] | ||||||
Unrealized gain (loss) on cash flow hedges, pre-tax | $ 47 | |||||
Other Comprehensive Income Loss Cash Flow Hedge Cumulative Gain Loss Before Reclassification And Tax | $ 91 | |||||
2.75% U.S. Dollar Note Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 2.75% | |||||
Debt Instrument, Face Amount | $ 210 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,100 |
Line of Credit Facility, Remaining Borrowing Capacity | 3,000 |
Principal repayments on long-term debt in 2024 | 671 |
Principal repayments on long-term debt in 2025 | 670 |
Principal repayments on long-term debt in 2026 | 757 |
Principal repayments on long-term debt in 2027 | 607 |
Principal repayments on long-term debt in 2028 | 608 |
Principal repayments on long-term debt in 2029 and beyond | 2,519 |
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 |
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 Credi
DEBT - Standby Letters of Credit (Details) - Standby Letters of Credit $ in Millions | Dec. 30, 2023 USD ($) |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 68 |
Secured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | 67 |
Unsecured | |
Financial Support for Nonconsolidated Legal Entity [Line Items] | |
Letters of Credit outstanding amount | $ 1 |
STOCK COMPENSATION - Equity bas
STOCK COMPENSATION - Equity based compensation programs (Details) shares in Millions | 12 Months Ended |
Dec. 30, 2023 shares | |
2017 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options granted remaining authorized, but unissued, shares | 13.8 |
Vesting period, years | 3 years |
Contractual term, years | 10 years |
2022 Long Term Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized, but unissued | 14 |
Options granted remaining authorized, but unissued, shares | 12.4 |
STOCK COMPENSATION - Schedule o
STOCK COMPENSATION - Schedule of Compensation Expense for Equity Programs and Related Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Pre-tax compensation expense | $ 96 | $ 100 | $ 73 |
Related income tax benefit | 25 | $ 26 | $ 19 |
Non-vested stock-based compensation awards not yet recognized | $ 108 | ||
Weighted-average period of recognition, years | 2 years |
STOCK COMPENSATION - Cash used
STOCK COMPENSATION - Cash used to settle equity instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Total cash received from option exercises and similar instruments (a) | $ 60 | $ 277 | $ 63 |
Tax windfall (shortfall) classified as cash flow from operating activities (a) | $ 3 | $ 3 | $ (3) |
STOCK COMPENSATION - Maximum Fu
STOCK COMPENSATION - Maximum Future Value of Performance Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Feb. 26, 2022 | Apr. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 30, 2023 | Oct. 30, 2023 | |
2023 Performance Share Award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum future value | $ 86 | |||||
2023 Performance Share Award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance Shares Issued On Vesting Date Minimum | 0% | |||||
Performance Shares Issued On Vesting Date Maximum | 200% | |||||
Performance Award Condition Time Period | 3 years | |||||
Non-vested, beginning of year - weighted-average grant date fair value | $ 60 | |||||
Performance Share Target Grant | 765 | |||||
2022 Performance share award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance Shares Issued On Vesting Date Minimum | 0% | |||||
Performance share award payout percentage | 140% | |||||
Performance Shares Issued On Vesting Date Maximum | 200% | |||||
Performance Award Condition Time Period | 3 years | |||||
2021 Performance share award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance Shares Issued On Vesting Date Minimum | 0% | |||||
Performance share award payout percentage | 165% | |||||
Performance Shares Issued On Vesting Date Maximum | 200% | |||||
Performance Award Condition Time Period | 3 years | |||||
2020 Performance share award | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance share award payout percentage | 175% | |||||
Performance share award payout in dollars | $ 34 |
STOCK COMPENSATION - Summary of
STOCK COMPENSATION - Summary of restricted stock activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Incremental Expense related to Spin off adjustment | $ 11 | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, years | 3 years | ||
Non-vested, beginning of year - shares | 1,661 | 1,786 | 1,736 |
Granted - shares | 572 | 709 | 727 |
Vested - shares | (491) | (619) | (489) |
Forfeited - shares | (359) | (215) | (188) |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Performance Share Conversion | 1,486 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Awards transferred to spin off | (529) | ||
Adjustment for spin-off | 843 | ||
Non-vested, end of year - shares | 3,183 | 1,661 | 1,786 |
Non-vested, beginning of year - weighted-average grant-date fair value | $ 64 | $ 60 | $ 61 |
Granted - weighted average grant-date fair value | 68 | 67 | 58 |
Vested - weighted-average grant-date fair value | 65 | 57 | 63 |
Forfeited - weighted-average grant-date fair value | 65 | 62 | 60 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Performance Share Conversion, Weighted Average Grant Date Fair Value | 63 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Awards transferred to spin off, Weighted Average Grant Date Fair Value | 65 | ||
Non-vested, end of year - weighted-average grant-date fair value | $ 58 | $ 64 | $ 60 |
Total fair value of restricted stock and restricted stock units vested during period | $ 33 | $ 41 | $ 29 |
STOCK COMPENSATION - Fair Value
STOCK COMPENSATION - Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share-Based Payment Arrangement [Abstract] | |
Weighted-average expected volatility | 20% |
Weighted-average expected term (years) | 6 years 8 months 12 days |
Weighted-average risk-free interest rate | 0.96% |
Dividend yield | 3.90% |
Weighted-average fair value of options granted | $ 6.39 |
STOCK COMPENSATION - Summary _2
STOCK COMPENSATION - Summary of Share-based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Outstanding, beginning of period - shares | 10 | 15 | 14 |
Granted - shares | 0 | 0 | 3 |
Exercised - shares | (1) | (4) | (1) |
Forfeitures and expirations | (1) | (1) | (1) |
Awards transferred to WK Kellogg Co. | (1) | ||
Adjustment for spin-off | 2 | ||
Outstanding, end of period - shares | 9 | 10 | 15 |
Exerciseable, end of period - shares | 8 | 8 | 10 |
Outstanding, beginning of period - weighted-average exercise price | $ 65 | $ 64 | $ 65 |
Granted - weighted-average exercise price | 0 | 0 | 58 |
Exercised - weighted-average exercise price | 59 | 61 | 56 |
Forfeitures and expirations - weighted-average exercise price | 60 | 63 | 66 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Awards transferred to spin off, Weighted Average Exercise Price | 66 | ||
Outstanding, end of period - weighted-average exercise price | 55 | 65 | 64 |
Exercisable, end of period - weighted-average exercise price | $ 59 | $ 67 | $ 66 |
Outstanding, end of period - weighted-average remaining contractual term (years) | 4 years 6 months | ||
Excerciseable, end of period - weighted-average remaining contractual term (years) | 4 years 3 months 18 days | ||
Outstanding, end of period - aggregate intrinsic value | $ 15 | ||
Exerciseable, end of period - aggregate intrinsic value | 12 | ||
Total intrinsic value of options exercised | 5 | $ 44 | $ 6 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Incremental Expense related to spin-off | 10 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Incremental Expense related to spin-off | 10 | ||
WK Kellogg Co | |||
Share-Based Payment Arrangement [Abstract] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Incremental Expense related to spin-off | 9 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Incremental Expense related to spin-off | $ 9 |
PENSION BENEFITS - Change in Pr
PENSION BENEFITS - Change in Projected Benefit Obligations, Plan Assets, and Funding Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | $ 201 | $ 320 | |
Other liabilities | (613) | (593) | |
Pension | |||
Change in Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | 171 | ||
Global plans | Pension | |||
Change in Benefit Obligation [Roll Forward] | |||
Beginning of Year | 2,877 | 4,444 | |
Service Cost | 17 | 20 | $ 24 |
Interest Cost | 149 | 109 | 83 |
Plan Amendments | 38 | 2 | |
Actuarial (gain) loss | 198 | (1,119) | |
Benefits paid | (256) | (430) | |
Other | 0 | (1) | |
Foreign Currency Adjustments | 54 | (148) | |
End of Year | 3,077 | 2,877 | 4,444 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value, Beginning of Year | 2,589 | 4,236 | |
Actual Return on Plan Assets | 211 | (1,059) | |
Employer Contributions | 25 | 2 | |
Plan participants' contributions | 0 | 1 | |
Benefits Paid, Plan Assets | (238) | (403) | |
Transfers | 0 | 0 | |
Currency translation | 63 | (188) | |
Fair Value, End of Year | 2,650 | 2,589 | $ 4,236 |
Funded Status | (427) | (288) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | 71 | 57 | |
Net Amount Recognized | 71 | 57 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | 201 | 320 | |
Other Current Liabilities | (15) | (15) | |
Other liabilities | (613) | (593) | |
Net Amount Recognized | (427) | (288) | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 3,000 | $ 2,800 |
PENSION BENEFITS - Accumulated
PENSION BENEFITS - Accumulated Benefit Obligations (Details) - Global plans - Pension - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 1,844 | $ 1,884 |
Accumulated benefit obligation | 1,834 | 1,875 |
Fair value of plan assets | $ 1,224 | $ 1,278 |
PENSION BENEFITS - Projected Be
PENSION BENEFITS - Projected Benefit Obligations (Details) - Pension - Global Plans [Member] - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,924 | $ 1,952 |
Projected benefit obligation, accumulated benefit obligation | 1,893 | 1,923 |
Projected benefit obligation, fair value of plan assets | $ 1,299 | $ 1,343 |
PENSION BENEFITS - Components o
PENSION BENEFITS - Components of Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 165 | $ 77 | $ (155) |
Global plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
401(k) expense | 40 | 41 | 41 |
Global plans | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 17 | 20 | 24 |
Interest Cost | 149 | 109 | 83 |
Expected Return on Plan Assets | (183) | (215) | (253) |
Amortization of Unrecognized Prior Service Cost (Credit) | 6 | 6 | 5 |
Other | 0 | (1) | 0 |
Recognized net (gain) loss | 171 | 153 | (20) |
Net periodic benefit cost | 160 | 72 | (161) |
Curtailment and special termination benefits | 0 | 0 | (1) |
Pension (income) expense | 160 | 72 | (162) |
Foreign and U.S. multiemployer defined contribution plan | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension (income) expense | $ 5 | $ 5 | $ 7 |
PENSION BENEFITS - Benefit Assu
PENSION BENEFITS - Benefit Assumptions (Details) - Pension - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 4.80% | 5.30% | 2.60% |
Long-term rate of compensation increase | 3.30% | 3.50% | 3.40% |
Actuarial (gain) loss | $ 171 | ||
Global Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.30% | 2.20% | 1.30% |
Discount rate - interest | 5.20% | 2.10% | 1% |
Long-term rate of compensation increase | 3.50% | 3.50% | 3.50% |
Long-term rate of return on plan assets | 7.20% | 5.90% | 5.60% |
Actuarial (gain) loss | $ 198 | $ (1,119) | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of consolidated pension and postretirement benefit plan assets | 56% | ||
Long-term inflation assumption | 2.50% | ||
Active management premium | 0.84% | ||
Expected rate of return on foreign plan assets | 7.75% | ||
Expected rates of return | 55th percentile |
PENSION BENEFITS - Plan Assets
PENSION BENEFITS - Plan Assets (Details) - Global plans - Pension - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 2,650 | $ 2,589 | $ 4,236 | |
Expected contribution by Company | 46 | |||
Net Asset Value (NAV) Practical Expedient | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | [1] | 1,286 | 1,517 | |
Cash and Cash Equivalents | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 60 | 16 | ||
Cash and Cash Equivalents | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 0 | (5) | ||
Cash and Cash Equivalents | Level 1, Level 2, and Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | [2] | 60 | 11 | |
Corporate stock, common | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 53 | $ 145 | ||
Domestic Corporate Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of consolidated plan assets represented by investment in Company comon stock | 1.90% | 2.10% | ||
Collective Trusts Domestic Equity | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 13 | $ 0 | ||
Collective Trusts Other International Debt | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 38 | 302 | ||
Bonds, corporate | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 222 | 209 | ||
Bonds, government | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 94 | 81 | ||
Bonds, other | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 16 | 61 | ||
Other | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 3 | 64 | ||
Other | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | 26 | 26 | 0 | |
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 26 | |||
Other | Level 1, Level 2, and Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | [3] | $ 29 | 90 | |
Debt Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 40% | |||
Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 38% | |||
Real Estate And Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted-average target asset allocation | 22% | |||
Buy-in annuity contract | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair Value of Plan Assets | $ 839 | 173 | $ 269 | |
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 839 | 173 | ||
Sub-Total | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 1,364 | $ 1,072 | ||
[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]Cash and cash equivalents includes Level 1 assets of $60 million and $16 million for 2023 and 2022, respectively, and Level 2 assets of $0 million and ($5) million for 2023 and 2022, respectively.[3]Other includes Level 2 assets of $3 million and $64 million for 2023 and 2022, respectively, and Level 3 assets of $26 million for 2023 and 2022. |
PENSION BENEFITS - Level 3 Gain
PENSION BENEFITS - Level 3 Gains and Losses (Details) - Pension - Global Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | $ 2,589 | $ 4,236 |
Other | 0 | 0 |
Currency translation | 63 | (188) |
Fair Value, End of Year | 2,650 | 2,589 |
Other Investments [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair Value, Beginning of Year | 26 | 0 |
Additions | 0 | 27 |
Realized gain and unrealized gain (loss) | (1) | (1) |
Currency translation | 1 | 0 |
Fair Value, End of Year | 26 | 26 |
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 | 173 | 269 |
Additions | 589 | 0 |
Realized gain and unrealized gain (loss) | 68 | (75) |
Currency translation | 9 | (21) |
Fair Value, End of Year | $ 839 | $ 173 |
PENSION BENEFITS - Benefit Paym
PENSION BENEFITS - Benefit Payments (Details) - Global plans - Pension $ in Millions | Dec. 30, 2023 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2024 | $ 205 |
Benefit payments in 2025 | 212 |
Benefit payments in 2026 | 215 |
Benefit payments in 2027 | 214 |
Benefit payments in 2028 | 221 |
Benefit payments in 2029 through 2033 | $ 1,115 |
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 | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | $ 201 | $ 320 | |
Other Liabilities | (22) | (19) | |
Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Actuarial (gain) loss | 29 | ||
U.S. and Canada | Nonpension postretirement | |||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | |||
Beginning of Year | 321 | 423 | |
Service Cost | 3 | 4 | $ 4 |
Interest Cost | 21 | 10 | 8 |
Actuarial (gain) loss | (5) | (92) | |
Benefits paid | (17) | (22) | |
Plan Amendments | (26) | 0 | |
Other | 2 | 0 | |
Foreign Currency Adjustments | 0 | (2) | |
End of Year | 299 | 321 | 423 |
Change in plan assets | |||
Fair Value, Beginning of Year | 529 | 694 | |
Actual Return on Plan Assets | 81 | (141) | |
Employer Contributions | 10 | 9 | |
Benefits Paid, Plan Assets | (29) | (33) | |
Other | (4) | 0 | |
Fair Value, End of Year | 587 | 529 | $ 694 |
Funded Status | 288 | 208 | |
Amounts Recognized in Balance Sheet | |||
Other Assets | 311 | 228 | |
Other Current Liabilities | (1) | (1) | |
Other Liabilities | (22) | (19) | |
Net Amount Recognized | 288 | 208 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |||
Prior Service Cost | (30) | (32) | |
Net Amount Recognized | $ (30) | $ (32) |
NONPENSION POSTRETIREMENT AND_4
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Accumulated Benefit Obligations (Details) - Nonpension postretirement - U.S. and Canada - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 23 | $ 21 |
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 | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ (45) | $ 57 | $ (74) |
U.S. and Canada defined benefit plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 3 | 4 | 4 |
Interest Cost | 21 | 10 | 8 |
Expected Return on Plan Assets | (51) | (42) | (35) |
Amortization of Unrecognized Prior Service Cost (Credit) | (4) | (4) | (4) |
Recognized net (gain) loss | (29) | 76 | (60) |
Net periodic benefit cost | (60) | 44 | (87) |
Postretirement Benefit Expense | (60) | 44 | (87) |
U.S. and Canada defined contribution plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Benefit Expense | $ 15 | $ 13 | $ 13 |
NONPENSION POSTRETIREMENT AND_6
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Assumptions (Details) - Nonpension postretirement | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate, benefit obligation | 5.10% | 5.50% | 2.90% |
U.S. and Canada | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 5.50% | 2.80% | 2.50% |
Discount rate - interest | 5.30% | 2.30% | 1.80% |
Long-term rate of return on plan assets | 8% | 7% | 6.30% |
NONPENSION POSTRETIREMENT AND_7
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Health Care Cost Trend Rates (Details) - Nonpension postretirement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumed healthcare cost trend rate for 2024 | 6.50% | |
Annual change in assumed healthcare cost trend rate | 0.25% | |
Assumed health care cost trend rate by 2033 and thereafter | 4.50% | |
Actuarial (gain) loss | $ 29 | |
U.S. and Canada | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actuarial (gain) loss | $ (5) | $ (92) |
NONPENSION POSTRETIREMENT AND_8
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Plan Assets (Details) - U.S. and Canada - Nonpension postretirement - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | $ 587 | $ 529 | $ 694 | |
Net Asset Value (NAV) Practical Expedient | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Amount | [1] | 495 | 334 | |
Cash and Cash Equivalents | Level 1, Level 2, and Level 3 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 1 | 0 | ||
Corporate stock, common | Level 1 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 0 | 74 | ||
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 amounts, investments within plan ssset category, amount | 7 | 16 | ||
Bonds, corporate | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 64 | 72 | ||
Bonds, government | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 16 | 29 | ||
Bonds, other | Level 2 [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | 4 | 4 | ||
Sub-Total | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, plan assets amounts, investments within plan ssset category, amount | $ 92 | $ 195 | ||
[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. |
NONPENSION POSTRETIREMENT AND_9
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - VEBA Trusts (Details) - U.S. and Canada - Nonpension postretirement $ in Millions | Dec. 30, 2023 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected contribution by Company | $ 18 |
Debt Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 26% |
Equity Securities | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 69% |
Real Estate | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Weighted-average target asset allocation | 5% |
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 | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Other Assets | $ 201 | $ 320 |
Amounts Recognized in Balance Sheet | ||
Other Liabilities | (22) | (19) |
Postemployment | ||
Defined Benefit Plan Change In Accumulated Benefit Obligation [Roll Forward] | ||
Beginning of Year | 29 | 37 |
Service Cost | 2 | 2 |
Interest Cost | 1 | 1 |
Actuarial (gain) loss | 0 | (6) |
Benefits paid | (2) | (5) |
End of Year | 30 | 29 |
Funded Status | (30) | (29) |
Amounts Recognized in Balance Sheet | ||
Other Current Liabilities | (5) | (6) |
Other Liabilities | (25) | (23) |
Net Amount Recognized | (30) | (29) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Prior Service Cost | 0 | 2 |
Net experience loss | (11) | (18) |
Net Amount Recognized | $ (11) | $ (16) |
NONPENSION POSTRETIREMENT AN_11
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Components of Postretirement Expense, Postemployment (Details) - Postemployment - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | $ 2 | $ 2 | |
Interest Cost | 1 | 1 | |
Global plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service Cost | 2 | 2 | $ 2 |
Interest Cost | 1 | 1 | 0 |
Amortization of Unrecognized Prior Service Cost (Credit) | 1 | 1 | 1 |
Recognized net (gain) loss | (2) | (1) | (1) |
Net periodic benefit cost | 2 | 3 | 2 |
Settlement cost | 0 | (2) | (1) |
Postemployment Benefits, Period Expense | $ 2 | $ 1 | $ 1 |
NONPENSION POSTRETIREMENT AN_12
NONPENSION POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS - Benefit Payments (Details) $ in Millions | Dec. 30, 2023 USD ($) |
U.S. and Canada | Nonpension postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2024 | $ 25 |
Benefit payments in 2025 | 25 |
Benefit payments in 2026 | 24 |
Benefit payments in 2027 | 24 |
Benefit payments in 2028 | 24 |
Benefit payments in 2029 through 2033 | 115 |
Global plans | Postemployment | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Benefit payments in 2024 | 5 |
Benefit payments in 2025 | 5 |
Benefit payments in 2026 | 4 |
Benefit payments in 2027 | 4 |
Benefit payments in 2028 | 4 |
Benefit payments in 2029 through 2033 | $ 15 |
MULTIEMPLOYER PENSION AND POS_2
MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS - Multiemployer Pension Plans Trusts Funds Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Multiemployer Plans [Line Items] | |||
Multiemployer withdrawal obligation annual cash obligation | $ 8 | ||
Multiemployer Plans, Withdrawal Obligation | $ 110 | $ 117 | |
Multiemployer plan withdrawal obligation term | 20 years | ||
Multiemployer withdrawal liability payments | $ 9 | 10 | $ 10 |
Pension | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 5 | $ 5 | $ 7 |
MULTIEMPLOYER PENSION AND POS_3
MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS - Multiemployer Postretirement Plans Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Nonpension postretirement | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions | $ 15 | $ 13 | $ 13 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Sep. 30, 2023 | Jan. 02, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 24.80% | 20% | 24.30% | |||
Income tax expense | $ 258 | $ 180 | $ 353 | |||
Pension contributions | 42 | 23 | 20 | |||
Undistributed earnings of foreign subsidiaries | 800 | |||||
Amount of unrecognized deferred tax liability on undistributed earnings of foreign subsidiaries | 46 | |||||
Tax benefits of carryforwards | 350 | 363 | ||||
Valuation allowance | 300 | 263 | ||||
Income taxes paid | $ 322 | 312 | 365 | |||
U.S percentage of tax provision | 50% | |||||
Projected additions to unrecognized tax benefits related to ongoing intercompany pricing activity | $ 3 | |||||
Unrecognized tax benefits that would affect the Company's effective tax rate in future periods | 28 | |||||
Deferred Tax Liabilities, Gross | 809 | 1,037 | ||||
Deferred tax liabilities | 314 | 570 | ||||
Deferred Tax Assets, Valuation Allowance | 300 | $ 263 | $ 248 | $ 20 | $ 192 | |
Expire in 5 Years or Less | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax benefits of carryforwards | 20 | |||||
Expire in 2027 and later | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax benefits of carryforwards | 61 | |||||
Do Not Expire | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax benefits of carryforwards | 269 | |||||
UNITED KINGDOM | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income tax expense | $ 23 | |||||
UNITED KINGDOM | Minimum | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 19% | |||||
UNITED KINGDOM | Maximum | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective income tax rate | 25% | |||||
Current liabilities | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Increase in Unrecognized Tax Benefits is Reasonably Possible | $ 10 |
INCOME TAXES - Income before in
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 | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, United States | $ 577 | $ 360 | $ 693 |
Income before income taxes, Foreign | 463 | 542 | 759 |
Income from continuing operations before income taxes | 1,040 | 902 | 1,452 |
Income taxes, currently payable, Federal | 153 | 110 | 101 |
Income taxes, currently payable, State | 29 | 19 | 27 |
Income taxes, currently payable, Foreign | 114 | 101 | 106 |
Income taxes, currently payable | 296 | 230 | 234 |
Income taxes, deferred, Federal | (49) | (43) | 37 |
Income taxes, deferred, State | 23 | (6) | 1 |
Income taxes, deferred, Foreign | (12) | (1) | 81 |
Income taxes, deferred | (38) | (50) | 119 |
Total income taxes | $ 258 | $ 180 | $ 353 |
INCOME TAXES - Difference Betwe
INCOME TAXES - Difference Between U.S. Federal Statutory Tax Rate and the Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21% | 21% | 21% |
Foreign rates varying from U.S. statutory rate | (2.90%) | (3.60%) | (2.30%) |
State income taxes, net of federal benefit | 2% | 1% | 1.60% |
Cost (benefit) of remitted and unremitted foreign earnings | 1.70% | 2% | 0.80% |
Net change in valuation allowance | 3% | 4.60% | 3.60% |
Statutory rate changes, deferred tax impact | 0.10% | 0.30% | 1% |
Foreign derived intangible income | (1.30%) | (1.60%) | (0.90%) |
Other | 1.20% | (3.70%) | (0.50%) |
Effective Income Tax Rate Reconciliation, Percent | 24.80% | 20% | 24.30% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Deferred Income Tax [Line Items] | ||||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 0 | $ 0 | ||||
Deferred Tax Liabilities Us State Income Taxes | 9 | 27 | ||||
Deferred Tax Assets Advertising And Promotion Related | 12 | 15 | ||||
Deferred Tax Assets Wages And Payroll Taxes | 15 | 19 | ||||
Deferred Tax Assets, Inventory | 12 | 19 | ||||
Deferred Tax Assets, Tax Deferred Expense, Employee Benefits | 99 | 64 | ||||
Tax benefits of carryforwards | 350 | 363 | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 40 | 22 | ||||
Deferred Tax Assets, Hedging Transactions | 0 | 0 | ||||
Deferred Tax Liabilities, Hedging Transactions | 8 | 37 | ||||
Deferred Tax Liabilities, Property, Plant and Equipment | 177 | 286 | ||||
Deferred Tax Liabilities, Operating Lease Right-of-Use Assets | 149 | 138 | ||||
Deferred Tax Asset, Operating Lease Liabilities | 147 | 139 | ||||
Deferred Tax Liabilities, Intangible Assets | 466 | 549 | ||||
Deferred Tax Assets, Tax Deferred Expense, Deferred Compensation | 13 | 27 | ||||
Deferred Tax Assets, Tax Deferred Expense, Stock Options | 43 | 28 | ||||
Deferred Tax Assets, Other | 64 | 34 | ||||
Deferred Tax Assets, Gross | 795 | 730 | ||||
Deferred Tax Liabilities, Gross | 809 | 1,037 | ||||
Deferred Tax Liabilities, Net | (314) | (570) | ||||
Deferred Tax Assets, Valuation Allowance | (300) | $ (20) | (263) | $ (248) | $ (192) | |
Deferred Tax Assets, Net of Valuation Allowance | 495 | 467 | ||||
Other Assets [Member] | ||||||
Deferred Income Tax [Line Items] | ||||||
Deferred Tax Assets, Net | 183 | 190 | ||||
Other liabilities | ||||||
Deferred Income Tax [Line Items] | ||||||
Deferred Tax Liabilities, Net | $ (497) | (760) | [1] | |||
Deferred tax liabilities reclassified to discontinued operations | $ 53 | |||||
[1]Other liabilities include $53 million reclassified to discontinued operations on the consolidated balance sheet at December 31, 2022. |
INCOME TAXES - Change in Valuat
INCOME TAXES - Change in Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |||
Income Tax Disclosure [Abstract] | |||||
Balance at beginning of year | $ 263 | $ 248 | $ 192 | ||
Additions charged to income tax expense | 65 | [1] | 44 | 59 | [1] |
Reductions credited to income tax expense | (34) | (3) | (6) | ||
Acquisition of noncontrolling interest | 0 | 0 | 13 | ||
Currency translation adjustments | 6 | (26) | (10) | ||
Balance at end of year | 300 | $ 263 | 248 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 18 | 20 | |||
Deferred Income Tax [Line Items] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (18) | $ (20) | |||
North America Cereal Business | |||||
Income Tax Disclosure [Abstract] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 21 | ||||
Deferred Income Tax [Line Items] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (21) | ||||
[1]During 2021, the Company increased the valuation allowance $20 million to fully reserve for net deferred tax assets of a foreign subsidiary. During 2023, the Company established a state valuation allowance of $21 million due to projected, perpetual separate company losses for Kellanova post separation from the North America cereal business. Additionally, in 2023 the Company established a valuation allowance of $18 million related to the sale of a subsidiary. |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 36 | $ 50 | $ 65 |
Additions, current year | 6 | 6 | 5 |
Additions, prior year | 3 | 1 | 5 |
Reductions, prior year | (10) | (18) | (13) |
Settlements, decreases | (1) | (1) | (9) |
Lapse in statute of limitations | (2) | (2) | (3) |
Balance at end of year | 32 | 36 | 50 |
Income tax examination interest payments | 1 | 1 | 2 |
Income Tax Examination, Interest Expense | 2 | 4 | |
Accrued tax-related interest and penalties | 5 | $ 8 | 7 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (18) | $ (20) |
DERIVATIVE INSTRUMENTS AND FA_3
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Oct. 01, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative [Line Items] | ||||
Five largest customers percentage of consolidated trade receivables | 18% | |||
Long-term debt, including current maturities of long-term debt | $ 5,752 | $ 6,097 | ||
Unrealized gain (loss) on cash flow hedges, pre-tax | (19) | 221 | $ 38 | |
Reclassifications to net income, pre-tax | (9) | 2 | (22) | |
Gain (loss) recognized in AOCI | (128) | 287 | 236 | |
Collateral posting | 59 | |||
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI | (128) | 287 | $ 236 | |
Interest expense | Cash Flow hedges | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) on cash flow hedges, pre-tax | 85 | 165 | ||
Reclassifications to net income, pre-tax | $ 18 | |||
Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Long-term debt, including current maturities of long-term debt | 1,700 | 1,600 | ||
Cross Currency Interest Rate Contract | Net Investment Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI | 68 | $ 37 | ||
Accounts receivable | ||||
Derivative [Line Items] | ||||
Margin deposits | $ 8 |
DERIVATIVE INSTRUMENTS AND FA_4
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Total Notional Amounts of the Company's Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Notional amount of derivatives | $ 7,338 | $ 7,372 |
Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 3,141 | 2,502 |
Cross-currency contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 1,707 | 1,983 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | 2,289 | 2,657 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional amount of derivatives | $ 201 | $ 230 |
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 | Dec. 30, 2023 | Dec. 31, 2022 | ||
Derivative [Line Items] | ||||
Fair Value Of Related Hedge Portion Of Long Term Debt | $ 1,100 | $ 1,100 | ||
Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Assets | 16 | 194 | ||
Liabilities | (121) | (86) | ||
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 | 16 | 194 | ||
Liabilities | (121) | (86) | ||
Designated as hedging instrument | Cross-currency contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 12 | 88 | ||
Designated as hedging instrument | Cross-currency contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 36 | ||
Designated as hedging instrument | Cross-currency contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (17) | 0 | ||
Designated as hedging instrument | Cross-currency contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (15) | 0 | ||
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 | 12 | 88 | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 36 | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (17) | 0 | ||
Designated as hedging instrument | Cross-currency contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (15) | 0 | ||
Designated as hedging instrument | Interest rate contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 0 | 45 | |
Designated as hedging instrument | Interest rate contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 0 | 25 | |
Designated as hedging instrument | Interest rate contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (44) | 0 | [1] | |
Designated as hedging instrument | Interest rate contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | [1] | (45) | (86) | |
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] | 0 | 45 | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | [1] | 0 | 25 | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (44) | 0 | [1] | |
Designated as hedging instrument | Interest rate contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | [1] | (45) | (86) | |
Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Assets | 70 | 110 | ||
Liabilities | (79) | (86) | ||
Not Designated as Hedging Instrument [Member] | Level 1 [Member] | ||||
Derivative [Line Items] | ||||
Assets | 2 | 4 | ||
Liabilities | (2) | (2) | ||
Not Designated as Hedging Instrument [Member] | Level 2 [Member] | ||||
Derivative [Line Items] | ||||
Assets | 68 | 106 | ||
Liabilities | (77) | (84) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 51 | 74 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 14 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (54) | (50) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (6) | (9) | ||
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 | 51 | 74 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 14 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (54) | (50) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (6) | (9) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 9 | 4 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 14 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (11) | (7) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (6) | (18) | ||
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 | 9 | 4 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 4 | 14 | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (11) | (7) | ||
Not Designated as Hedging Instrument [Member] | Interest rate contracts | Level 2 [Member] | Other liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (6) | (18) | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 2 | 4 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (2) | (2) | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Assets | 2 | 4 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | Level 1 [Member] | Other current liabilities | ||||
Derivative [Line Items] | ||||
Liabilities | (2) | (2) | ||
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 $1.1 billion as of December 30, 2023 and December 31, 2022, respectively. |
DERIVATIVE INSTRUMENTS AND FA_6
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Long-term debt | $ 5,089 | $ 5,317 | |
Carrying amount of hedged liability | Fair value hedges | Interest rate contracts | Designated as hedging instrument | |||
Derivatives, Fair Value [Line Items] | |||
Current maturities of long-term debt | 655 | 483 | |
Long-term debt | 1,666 | 2,250 | |
Cumulative fair value adjustment | Fair value hedges | Interest rate contracts | Designated as hedging instrument | |||
Derivatives, Fair Value [Line Items] | |||
Current maturities of long-term debt | [1] | (8) | (3) |
Long-term debt | [1] | (43) | (74) |
Cumulative fair value adjustment | Discontinued hedging | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Current maturities of long-term debt | 2 | (3) | |
Long-term debt | $ 3 | $ 13 | |
[1] The fair value adjustment related to current maturities of long-term debt includes $2 million and $(3) million from discontinued hedging relationships as of December 30, 2023, and December 31, 2022, respectively. The hedged long-term debt includes $3 million and $13 million of hedging adjustment on discontinued hedging relationships as of December 30, 2023 and December 31, 2022, respectively. |
DERIVATIVE INSTRUMENTS AND FA_7
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net amount of assets presented in the balance sheet | $ 86 | $ 304 |
Financial instruments, gross amount not offset in balance sheet | (84) | (153) |
Derivative, Collateral, Obligation to Return Cash | 0 | (33) |
Net amount, assets derivatives | 2 | 118 |
Net amounts of liabilities presented in balance sheet | (200) | (172) |
Financial instruments, gross amount not offset in balance sheet | 84 | 153 |
Cash collateral received, gross amount not offset in balance sheet | 68 | 19 |
Net amount, liabilities derivatives | $ (48) | $ 0 |
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 | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 10 | ||
Gain (loss) recognized in AOCI | (128) | $ 287 | $ 236 |
Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | (128) | 287 | 236 |
Gain (loss) excluded from assessment of hedge effectiveness | 53 | 39 | 26 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (138) | 82 | 115 |
Foreign currency exchange contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (6) | 35 | (15) |
Foreign currency exchange contracts | SGA | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | (12) | 4 | 13 |
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 | (10) | (4) | (4) |
Foreign Currency Denominated Long Term Debt | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in AOCI | (57) | 164 | 175 |
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 | (71) | 123 | 61 |
Gain (loss) excluded from assessment of hedge effectiveness | 53 | 39 | 26 |
Interest rate contracts | Interest expense | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | 0 | 4 | 1 |
Commodity contracts | COGS [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income | $ (110) | $ 43 | $ 120 |
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 | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest expense | $ 303 | $ 201 | $ 205 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | Interest expense |
Interest rate contracts | Designated as hedging instrument | Cash Flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Reclassified from AOCI into Income | $ (9) | $ 2 | $ (22) |
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 | (26) | 89 | 14 |
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 30 | $ (85) | $ (12) |
DERIVATIVE INSTRUMENTS AND F_10
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Carrying and Market Values of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities, cost | $ 0 | $ 52 | |
Available-for-sale securities unrealized gain (loss) | 0 | (5) | |
Available-for-sale securities, market value | 0 | 47 | |
Sales of available-for-sale securities | 64 | 19 | $ 72 |
Payments to Acquire Debt Securities, Available-for-sale | 15 | 17 | $ 61 |
Level 2 [Member] | Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Sales of available-for-sale securities | 64 | 19 | |
Payments to Acquire Debt Securities, Available-for-sale | 15 | 17 | |
Other Income (Expense), Net | Level 2 [Member] | Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gain (loss) on sale of available-for-sale securities | $ (3) | $ (1) |
DERIVATIVE INSTRUMENTS AND F_11
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Equity Investments (Details) $ in Millions | Dec. 30, 2023 USD ($) |
Level 2 [Member] | Other Assets [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Equity Method Investments, Fair Value Disclosure | $ 40 |
DERIVATIVE INSTRUMENTS AND F_12
DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 5,000 | $ 5,100 |
Long-term debt, carrying value | $ 5,089 | $ 5,317 |
QUARTERLY FINANCIAL DAT, Net Sa
QUARTERLY FINANCIAL DAT, Net Sales and Gross Profit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 3,174 | $ 3,255 | $ 3,351 | $ 3,342 | $ 3,164 | $ 3,251 | $ 3,181 | $ 3,057 | $ 13,122 | $ 12,653 | $ 11,747 |
Gross Profit | $ 1,095 | $ 1,110 | $ 1,094 | $ 984 | $ 947 | $ 948 | $ 918 | $ 998 | $ 4,283 | $ 3,811 |
QUARTERLY FINANCIAL DAT, Net In
QUARTERLY FINANCIAL DAT, Net Income and Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net income from continuing operations | $ 58 | $ 199 | $ 297 | $ 234 | $ (28) | $ 235 | $ 201 | $ 323 | $ 788 | $ 731 | $ 1,103 |
Earnings from continuing operations, per basic share | $ 0.16 | $ 0.58 | $ 0.85 | $ 0.67 | $ (0.08) | $ 0.68 | $ 0.59 | $ 0.95 | $ 2.27 | $ 2.14 | $ 3.21 |
Earnings from continuing operations, per diluted share | 0.16 | 0.57 | 0.85 | 0.67 | (0.08) | 0.68 | 0.59 | 0.94 | 2.25 | 2.12 | 3.19 |
Earnings from discontinued operations, per basic share | (0.08) | 0.21 | 0.19 | 0.20 | (0.21) | 0.23 | 0.37 | 0.29 | 0.51 | 0.67 | 1.15 |
Earnings from discontinued operations, per diluted share | $ (0.08) | $ 0.21 | $ 0.18 | $ 0.19 | $ (0.21) | $ 0.22 | $ 0.36 | $ 0.29 | $ 0.51 | $ 0.67 | $ 1.14 |
Income (loss) from discontinued operations, net of tax | $ (28) | $ 72 | $ 64 | $ 68 | $ (72) | $ 78 | $ 125 | $ 100 | $ 176 | $ 231 | $ 392 |
Net income (loss) attributable to Kellanova | $ 27 | $ 271 | $ 355 | $ 298 | $ (99) | $ 311 | $ 327 | $ 421 | $ 951 | $ 960 | $ 1,488 |
Net Earnings Per Common Share - Basic | $ 0.08 | $ 0.79 | $ 1.04 | $ 0.87 | $ (0.29) | $ 0.91 | $ 0.96 | $ 1.24 | $ 2.78 | $ 2.81 | $ 4.36 |
Net Earnings Per Common Share - Diluted | $ 0.08 | $ 0.78 | $ 1.03 | $ 0.86 | $ (0.29) | $ 0.90 | $ 0.95 | $ 1.23 | $ 2.76 | $ 2.79 | $ 4.33 |
QUARTERLY FINANCIAL DAT, Averag
QUARTERLY FINANCIAL DAT, Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | |||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 342 | 342 | 343 | 342 | 342 | 341 | 339 | 340 |
Weighted Average Number of Shares Outstanding, Diluted | 344 | 345 | 345 | 345 | 345 | 344 | 342 | 342 |
QUARTERLY FINANCIAL DAT, Divide
QUARTERLY FINANCIAL DAT, Dividends and Stock Prices (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Dividends per share | $ 0.56 | $ 0.60 | $ 0.59 | $ 0.59 | $ 0.59 | $ 0.59 | $ 0.58 | $ 0.58 | $ 2.34 | $ 2.34 |
REPORTABLE SEGMENTS - Narrative
REPORTABLE SEGMENTS - Narrative (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | 4 | ||
Walmart Stores Inc [Member] | Customer Concentration Risk [Member] | Sales [Member] | United States | Revenue | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 15% | 16% | 17% |
REPORTABLE SEGMENTS - Segments
REPORTABLE SEGMENTS - Segments Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 3,174 | $ 3,255 | $ 3,351 | $ 3,342 | $ 3,164 | $ 3,251 | $ 3,181 | $ 3,057 | $ 13,122 | $ 12,653 | $ 11,747 |
Operating profit | 1,505 | 1,211 | 1,383 | ||||||||
Depreciation and amortization restated for discontinued operations | 366 | 404 | 395 | ||||||||
Depreciation, Depletion and Amortization | 419 | 478 | 467 | ||||||||
Interest expense | 303 | 201 | 205 | ||||||||
Income taxes | 258 | 180 | 353 | ||||||||
Segment, Expenditure, Addition to Long-Lived Assets | 569 | 401 | 463 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 13,125 | 12,662 | 11,747 | ||||||||
Operating profit | 1,781 | 1,604 | 1,628 | ||||||||
Depreciation and amortization restated for discontinued operations | 360 | 396 | 392 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (3) | (9) | 0 | ||||||||
Operating profit | (276) | (393) | (245) | ||||||||
Depreciation and amortization restated for discontinued operations | 6 | 8 | 3 | ||||||||
North America | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 6,574 | 6,330 | 5,775 | ||||||||
Operating profit | 1,024 | 907 | 932 | ||||||||
Depreciation and amortization restated for discontinued operations | 180 | 187 | 191 | ||||||||
Interest expense | 1 | 1 | 0 | ||||||||
Segment, Expenditure, Addition to Long-Lived Assets | 249 | 168 | 237 | ||||||||
Europe | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,501 | 2,310 | 2,397 | ||||||||
Operating profit | 357 | 329 | 350 | ||||||||
Depreciation, Depletion and Amortization | 80 | 81 | 92 | ||||||||
Interest expense | 68 | 20 | 4 | ||||||||
Income taxes | 42 | 38 | 48 | ||||||||
Segment, Expenditure, Addition to Long-Lived Assets | 122 | 107 | 102 | ||||||||
Latin America | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,265 | 1,089 | 962 | ||||||||
Operating profit | 130 | 116 | 100 | ||||||||
Depreciation, Depletion and Amortization | 35 | 34 | 25 | ||||||||
Interest expense | 4 | 2 | 1 | ||||||||
Income taxes | 34 | 24 | 51 | ||||||||
Segment, Expenditure, Addition to Long-Lived Assets | 75 | 45 | 39 | ||||||||
AMEA | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,785 | 2,933 | 2,613 | ||||||||
Operating profit | 270 | 252 | 246 | ||||||||
Depreciation, Depletion and Amortization | 65 | 94 | 84 | ||||||||
Interest expense | 23 | 22 | 17 | ||||||||
Income taxes | 45 | 42 | 40 | ||||||||
Segment, Expenditure, Addition to Long-Lived Assets | 102 | 69 | 73 | ||||||||
Corporate | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense | 207 | 156 | 183 | ||||||||
Segment, Expenditure, Addition to Long-Lived Assets | 21 | 12 | 12 | ||||||||
Corporate And North America | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income taxes | $ 137 | $ 76 | $ 214 |
REPORTABLE SEGMENTS - Segment_2
REPORTABLE SEGMENTS - Segments Net sales to external customers and long-lived assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 3,174 | $ 3,255 | $ 3,351 | $ 3,342 | $ 3,164 | $ 3,251 | $ 3,181 | $ 3,057 | $ 13,122 | $ 12,653 | $ 11,747 |
Long-lived assets from continuing operations | 3,873 | 3,700 | 3,873 | 3,700 | 3,797 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 6,279 | 6,061 | 5,512 | ||||||||
Long-lived assets from continuing operations | 1,847 | 1,872 | 1,847 | 1,872 | 1,867 | ||||||
NIGERIA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,113 | 1,322 | 1,039 | ||||||||
Long-lived assets from continuing operations | 84 | 153 | 84 | 153 | 167 | ||||||
POLAND | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 41 | 23 | 15 | ||||||||
Long-lived assets from continuing operations | 390 | 320 | 390 | 320 | 316 | ||||||
All Other Countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 5,689 | 5,247 | 5,181 | ||||||||
Long-lived assets from continuing operations | $ 1,552 | $ 1,355 | $ 1,552 | $ 1,355 | $ 1,447 |
REPORTABLE SEGMENTS - Supplemen
REPORTABLE SEGMENTS - Supplemental product information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 3,174 | $ 3,255 | $ 3,351 | $ 3,342 | $ 3,164 | $ 3,251 | $ 3,181 | $ 3,057 | $ 13,122 | $ 12,653 | $ 11,747 |
Snacks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 8,105 | 7,563 | 6,807 | ||||||||
Retail Channel Cereal | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,736 | 2,618 | 2,689 | ||||||||
Frozen | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,095 | 1,097 | 1,106 | ||||||||
Noodles and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,186 | $ 1,375 | $ 1,145 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT DATA - Consolidated Statement of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disclosure Text Block Supplement [Abstract] | |||
Research and development expense | $ 116 | $ 111 | $ 117 |
Advertising expense | $ 633 | $ 549 | $ 541 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT DATA - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Disclosure Text Block Supplement [Abstract] | ||||
Trade receivables | $ 1,246 | $ 1,251 | ||
Allowance for doubtful accounts | (16) | (13) | $ (15) | $ (19) |
Refundable income taxes | 74 | 82 | ||
Other Receivables | 264 | 212 | ||
Accounts receivable, net | 1,568 | 1,532 | ||
Raw materials, spare parts and supplies | 303 | 313 | ||
Finished goods and materials in process | 940 | 1,026 | ||
Inventories, net | 1,243 | 1,339 | ||
Land | 107 | 94 | ||
Buildings | 1,722 | 1,628 | ||
Machinery and equipment | 4,690 | 4,500 | ||
Capitalized software | 435 | 500 | ||
Construction in progress | 591 | 528 | ||
Accumulated depreciation | (4,333) | (4,160) | ||
Property, net | 3,212 | 3,090 | ||
Other intangibles | 2,084 | 2,401 | ||
Accumulated amortization | (154) | (162) | ||
Other intangibles, net | 1,930 | 2,239 | ||
Pension | 201 | 320 | ||
Deferred income taxes | 183 | 190 | ||
Nonpension post retirement benefits | 311 | 228 | ||
Other | 449 | 542 | ||
Other assets | 1,144 | 1,280 | ||
Accrued income taxes | 57 | 49 | ||
Customer deposits | 85 | 150 | ||
Other | 655 | 642 | ||
Other Liabilities, Current | 797 | 841 | ||
Income taxes payable | 40 | 37 | ||
Nonpension postretirement benefits | 22 | 19 | ||
Other | 399 | 434 | ||
Other liabilities | $ 461 | $ 490 |
SUPPLEMENTAL FINANCIAL STATEM_5
SUPPLEMENTAL FINANCIAL STATEMENT DATA - Allowance for doubtful accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disclosure Text Block Supplement [Abstract] | |||
Balance at beginning of year | $ 13 | $ 15 | $ 19 |
Additions (reductions) charged to expense | 5 | 4 | (1) |
Doubtful accounts charged to reserve | (2) | (6) | (3) |
Balance at end of year | $ 16 | $ 13 | $ 15 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Dec. 30, 2023 USD ($) |
North America | North American Frozen Supply Chain Network Program | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | $ 75 |
North America | Cash Charges | North American Frozen Supply Chain Network Program | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 20 |
North America | Employee related cost | North American Frozen Supply Chain Network Program | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 10 |
North America | Other cost | North American Frozen Supply Chain Network Program | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 10 |
North America | Asset Impairments, Accelerate Depreciation and Write-offs | North American Frozen Supply Chain Network Program | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 55 |
Europe | European Cereal Supply Chain Network Plan | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 120 |
Europe | Cash Charges | European Cereal Supply Chain Network Plan | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 80 |
Europe | Employee related cost | European Cereal Supply Chain Network Plan | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 50 |
Europe | Other cost | European Cereal Supply Chain Network Plan | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | 30 |
Europe | Asset Impairments, Accelerate Depreciation and Write-offs | European Cereal Supply Chain Network Plan | |
Subsequent Event [Line Items] | |
Restructuring and related cost, expected cost | $ 40 |