APPENDICES: Kellogg Company Q1 2015 Financial Results Presentation
May 5, 2015
GAAP Reconciliations
1
2
3
4
5
6
7
Cash Flow ‐ YTD
Net Sales ‐ QTD
Operating Profit ‐ QTD
Gross Profit
Gross Margin
Earnings Per Share
Effective Tax Rate
Other
8
9
10
11
Segment Net Sales & OP ‐ QTD
Restructuring and Cost Reduction Activities
Integration Costs
Recast Segments
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts –
Kellogg-Defined Cash Flow to GAAP Cash Flow (a)
(unaudited)
(millions)
Operating activities
Net income
Adjustments to reconcile net income to
operating cash flows:
Depreciation and amortization
Postretirement benefit plan expense (benefit)
Deferred income taxes
Other
Postretirement benefit plan contributions
Changes in operating assets and liabilities, net of acquisitions
Quarter ended
April 4,
March 29,
2015
2014
$227
$406
131
(21)
(2)
46
(12)
(274)
116
(22)
45
6
(28)
(255)
95
268
Less:
Additions to properties
(83)
(97)
Cash Flow (operating cash flow less property additions) (a)
$12
Net cash provided by (used in) operating activities
(a)
$171
Cash flow is defined as net cash provided by operating activities less capital expenditures. We use this nonGAAP financial measure to focus management and investors on the amount of cash available for debt
repayment, dividend distributions, acquisition opportunities and share repurchase.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 1
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts –
Reported Net Sales to Currency-Neutral Comparable Net Sales
Q1 2015
Quarter ended April 4, 2015
(millions)
Reported Net Sales
Project K (a)
Acquisitions/divestitures (b)
Differences in shipping days
Comparable Net Sales (c)
Foreign currency impact
Currency-Neutral Comparable Net Sales (d)
$
$
$
U.S.
U.S.
U.S.
N. America
Morning Foods
Snacks
Specialty
Other
776
776
776
$
$
$
854
854
854
$
361
361
361
$
433 $
(2)
435 $
(18)
453 $
U.S.
Specialty
372 $
2
370 $
370 $
N. America
Other
482 $
482 $
482 $
$
$
$
$
Kellogg
Europe
607 $
8
(3)
602 $
(110)
712 $
Latin America
Asia Pacific
295 $
295 $
(26)
321 $
230 $
230 $
(22)
252 $
Europe
Latin America
705 $
278 $
705 $
278 $
705 $
278 $
Asia Pacific
242 $
242 $
242 $
Corporate
-
Consolidated
$
$
3,556
(2)
8
(3)
3,553
(176)
3,729
Corporate
- $
- $
- $
Kellogg
Consolidated
3,742
2
3,740
3,740
$
Quarter ended March 29, 2014
(millions)
Reported Net Sales
Project K (a)
Acquisitions/divestitures (b)
Differences in shipping days
Comparable Net Sales (c)
Foreign currency impact
Currency-Neutral Comparable Net Sales (d)
U.S.
Morning Foods
$
799 $
$
799 $
$
799 $
U.S.
Snacks
864 $
864 $
864 $
(a) Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. The focus of the program will be to strengthen existing businesses in core markets, increase growth in
developing and emerging markets, and drive an increased level of value-added innovation. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure, the
implementation of global business services, and a new global focus on categories.
(b) Includes impact of Bisco Misr acquisition during Q1 2015 and the 2014 divestiture of Loma Linda.
(c) Comparable net sales is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides
increased transparency and assists in understanding our comparable operating performance.
(d) Currency-Neutral Comparable Net Sales is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP
measures provides increased transparency and assists in understanding our comparable operating performance.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 2
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts –
Reported Operating Profit to Currency-Neutral Comparable Operating Profit
Q1 2015
Quarter ended April 4, 2015
(millions)
Reported Operating Profit
$
Mark-to-market (a)
Project K (b)
Integration impact (c)
Comparable Operating Profit (d)
$
Foreign currency impact
Currency-Neutral Comparable Operating Profit (e) $
U.S.
U.S.
U.S.
N. America
Morning Foods
Snacks
Specialty
Other
127 $
(8)
135 $
1
134 $
80 $
(9)
89 $
89 $
78 $
(1)
79 $
79 $
59 $
(6)
65 $
(4)
69 $
Kellogg
Europe
61 $
(19)
(5)
85 $
(8)
93 $
Latin America
51 $
51 $
(4)
55 $
Asia Pacific
12 $
(5)
(3)
20 $
(2)
22 $
Corporate
Consolidated
(84) $
(67)
(20)
3 $
(4)
7 $
384
(67)
(68)
(8)
527
(21)
548
Quarter ended March 29, 2014
(millions)
Reported Operating Profit
$
Mark-to-market (a)
Project K (b)
Integration impact (c)
Comparable Operating Profit (d)
$
Foreign currency impact
Currency-Neutral Comparable Operating Profit (e) $
U.S.
Morning Foods
126 $
(11)
137 $
137 $
U.S.
Snacks
86 $
(7)
93 $
93 $
U.S.
Specialty
87 $
(1)
88 $
88 $
N. America
Other
83 $
(3)
86 $
86 $
Europe
65 $
(12)
(6)
83 $
83 $
Latin America
48 $
(4)
52 $
52 $
Asia Pacific
16 $
(6)
22 $
22 $
Corporate
Kellogg
Consolidated
103 $
116
(10)
(1)
(2) $
(2) $
614
116
(54)
(7)
559
559
(a) Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and administrative expense. Actuarial gains/losses for pension plans are
recognized in the year they occur. A portion of these mark-to-market adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have
been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair value of contracts for the difference between contract and market
prices for the underlying commodities. The resulting gains/losses are recognized in the quarter they occur.
(b) Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. The focus of the program will be to strengthen existing businesses in core markets, increase growth in
developing and emerging markets, and drive an increased level of value-added innovation. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure, the
implementation of global business services, and a new global focus on categories.
(c) Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions.
(d) Comparable operating profit is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures
provides increased transparency and assists in understanding our comparable operating performance.
(e) Currency-Neutral Comparable operating profit is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table. We believe the use of such nonGAAP measures provides increased transparency and assists in understanding our comparable operating performance.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 3
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts –
Reported Gross Profit to Currency-Neutral Comparable Gross Profit
Quarter ended
(millions)
Reported Gross Profit (a)
Mark-to-market (b)
Project K (c)
Integration impact (d)
Acquisitions/divestitures (e)
Comparable Gross Profit (g)
Foreign currency impact
Currency-Neutral Comparable Gross Profit (g)
April 4, 2015
March 29, 2014
$1,245
(68)
(34)
(6)
2
$1,351
(64)
$1,415
$1,504
116
(25)
(4)
―
$1,417
―
$1,417
(a) Gross profit is equal to net sales less cost of goods sold.
(b) Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and
administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-to-market
adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have
been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair
value of contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are
recognized in the quarter they occur.
(c) Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. The focus of the program will be to
strengthen existing businesses in core markets, increase growth in developing and emerging markets, and drive an increased level of valueadded innovation. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure, the
implementation of global business services, and a new global focus on categories.
(d) Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions.
(e) Includes impact of Bisco Misr acquisition during the first quarter of 2015 and the divestiture of Loma Linda in 2014.
(f) Comparable Gross Profit is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within
this table. We believe the use of such a non-GAAP measure provides increased transparency and assists in understanding our comparable
operating performance.
(g) Currency-Neutral Gross Profit is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S.
GAAP within this table. We believe the use of such a non-GAAP measure provides increased transparency and assists in understanding our
comparable operating performance.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 4
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts –
Reported Gross Margin to Currency-Neutral Comparable Gross Margin
Quarter ended
April 4,
March 29,
2014
2015
Reported Gross Margin (a)
Mark-to-market (b)
Project K (c)
Integration impact (d)
Acquisitions/divestitures (e)
Comparable Gross Margin (f)
Foreign currency impact
Currency-Neutral Comparable Gross Margin (g)
35.0%
-1.9%
-0.9%
-0.2%
―
38.0%
0.1%
37.9%
40.2%
3.1%
-0.7%
-0.1%
―
37.9%
―
37.9%
(a) Reported gross margin as a percentage of net sales. Gross margin is equal to net sales less cost of goods sold.
(b) Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general
and administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-tomarket adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and
2013 have been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the
changes in the fair value of contracts for the difference between contract and market prices for the underlying commodities. The resulting
gains/losses are recognized in the quarter they occur.
(c) Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. The focus of the program will
be to strengthen existing businesses in core markets, increase growth in developing and emerging markets, and drive an increased level
of value-added innovation. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure,
the implementation of global business services, and a new global focus on categories.
(d) Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions.
(e) Includes impact of Bisco Misr acquisition during the first quarter of 2015 and the divestiture of Loma Linda in 2014.
(f) Comparable Gross Margin is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S.
GAAP within this table. We believe the use of such a non-GAAP measure provides increased transparency and assists in understanding
our comparable operating performance.
(g) Currency-Neutral Gross Margin is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S.
GAAP within this table. We believe the use of such a non-GAAP measure provides increased transparency and assists in understanding
our comparable operating performance.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 5
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts – Reported EPS to Currency-Neutral Comparable EPS
Year-to-date
period ended
Quarter ended
Reported EPS
Mark-to-market (a)
Project K (b)
Other costs (c)
Integration impact (d)
Difference in shipping days (e)
Comparable EPS (f)
Foreign currency impact
Currency-Neutral Comparable EPS (g)
April 4, 2015
March 29,
2014
Change vs.
prior year
January 3,
2015
$0.64
(0.13)
(0.13)
(0.07)
(0.01)
$0.98
(0.06)
$1.04
$1.12
0.22
(0.10)
(0.01)
$1.01
$1.01
-42.9%
$1.75
(1.42)
(0.61)
(0.01)
(0.09)
0.07
$3.81
(0.01)
$3.82
-3.0%
3.0%
(a) Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and
administrative expense. Actuarial gains/losses for pension plans are recognized in the year they occur. A portion of these mark-to-market
adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts capitalized at the end of 2014 and 2013 have been
recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair value of
contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are recognized in the
quarter they occur.
(b) Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. The focus of the program will be to
strengthen existing businesses in core markets, increase growth in developing and emerging markets, and drive an increased level of value-added
innovation. The program is expected to provide a number of benefits, including an optimized supply chain infrastructure, the implementation of global
business services, and a new global focus on categories.
(c) During the quarter ended April 4, 2015, the Company has determined that certain assets related to a portion of the business may not be fully
recoverable and has recorded a non-cash charge within other income (expense). Year-to-date period ended January 3, 2015 includes impact of
costs related to evaluation of potential acquisitions.
(d) Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions.
(e) Difference in shipping days resulting from 53rd week of business results that occurred in the fourth quarter of 2014.
(f) Comparable EPS is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP within this table.
We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating
performance.
(g) Currency-Neutral Comparable EPS is a non-GAAP measure which is reconciled to the directly comparable measure in accordance with U.S. GAAP
within this table. We believe the use of such non-GAAP measure provides increased transparency and assists in understanding our comparable
operating performance.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 6
Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts –
Reported Effective Tax Rate to Currency-Neutral Comparable Effective Tax Rate
Quarter ended
Reported Effective Tax Rate
Mark-to-market (a)
Project K (b)
Other costs (c)
Integration impact
Comparable Effective Tax Rate (d)
Foreign currency impact
Currency-Neutral Comparable Effective Tax Rate (e)
April 4, 2015
March 29, 2014
25.1%
-1.0%
-0.8%
1.4%
0.1%
25.4%
0.7%
24.7%
28.9%
0.5%
-0.4%
0.0%
0.0%
28.8%
0.0%
28.8%
(a) Mark-to-market adjustments, in general, were incurred in jurisdictions with tax rates higher than our
reported effective tax rate during the quarters ended April 4, 2015 and March 29, 2014.
(b) Costs incurred related to the execution of restructuring and cost reduction activities, in general, were
incurred in jurisdictions with tax rates higher than our effective tax rate during the quarters ended April
4, 2015 and March 29, 2014.
(c) During the quarter ended April 4, 2015, the Company has determined that certain assets related to a
portion of the business may not be fully recoverable and has recorded a non-cash charge within other
income (expense).
(d) Comparable Effective Tax Rate is reconciled to the directly comparable measure in accordance with
U.S. GAAP within this table.
(e) Currency-Neutral Comparable Effective Tax Rate is reconciled to the directly comparable measure in
accordance with U.S. GAAP within this table.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 7
Kellogg Company and Subsidiaries
Analysis of Net Sales and Operating Profit Performance
First Quarter 2015 versus 2014
(dollars in millions)
2015 net sales
2014 net sales
% change - 2015 vs. 2014:
As Reported
Project K (b)
Acquisitions/divestitures (d)
Differences in shipping days
Comparable growth (e)
Foreign currency impact
Currency-Neutral Comparable growth (f)
U.S.
Morning Foods
U.S.
Snacks
U.S.
Specialty
$776
$799
$854
$864
$361
$372
-2.9%
0.0%
0.0%
0.0%
-2.9%
0.0%
-2.9%
-1.1%
0.0%
0.0%
0.0%
-1.1%
0.0%
-1.1%
-3.0%
0.0%
-0.5%
0.0%
-2.5%
0.0%
-2.5%
N. America
Other
$433
$482
-10.2%
-0.5%
0.0%
0.0%
-9.7%
-3.6%
-6.1%
Volume (tonnage) (g)
Pricing/mix
(dollars in millions)
2015 operating profit
2014 operating profit
% change - 2015 vs. 2014:
As Reported
Mark-to-market (a)
Project K (b)
Integration impact (c)
Acquisitions/divestitures (d)
Differences in shipping days
Comparable growth (e)
Foreign currency impact
Currency-Neutral Comparable growth (f)
U.S.
Morning Foods
U.S.
Snacks
$127
$126
$80
$86
0.2%
0.0%
1.8%
0.0%
0.0%
0.0%
-1.6%
0.4%
-2.0%
-7.3%
0.0%
-3.1%
-0.1%
0.0%
0.0%
-4.1%
0.0%
-4.1%
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
U.S.
Specialty
$78
$87
-10.2%
0.0%
-0.1%
0.0%
0.1%
0.0%
-10.2%
0.0%
-10.2%
N. America
Other
$59
$83
-27.9%
0.0%
-4.2%
0.0%
0.0%
0.0%
-23.7%
-4.3%
-19.4%
North
America
$2,424
$2,517
Europe
$607
$705
Latin
America
$295
$278
Asia
Pacific
$230
$242
Corporate
Consolidated
$3,556
$3,742
$0
$0
-3.7%
-0.1%
-0.1%
0.0%
-3.5%
-0.7%
-2.8%
-13.8%
0.0%
1.1%
-0.4%
-14.5%
-15.5%
1.0%
6.3%
0.0%
0.0%
0.0%
6.3%
-9.4%
15.7%
-5.3%
0.0%
0.0%
0.0%
-5.3%
-9.3%
4.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-5.0%
-0.1%
0.2%
-0.1%
-5.0%
-4.7%
-0.3%
-2.3%
-0.5%
1.4%
-0.4%
4.5%
11.2%
5.0%
-1.0%
0.0%
0.0%
-0.7%
0.4%
North
America
$344
$382
-9.9%
0.0%
-1.2%
0.0%
0.0%
0.0%
-8.7%
-0.7%
-8.0%
Europe
$61
$65
-5.8%
0.0%
-9.4%
0.9%
0.7%
-0.5%
2.5%
-10.3%
12.8%
Latin
America
$51
$48
4.8%
0.0%
8.1%
-0.1%
0.0%
0.0%
-3.2%
-8.4%
5.2%
Asia
Pacific
$12
$16
-22.8%
0.0%
2.3%
-8.9%
0.0%
0.0%
-16.2%
-13.0%
-3.2%
Corp‐
orate
Consoli‐
dated
($84)
$103
-182.1%
-154.1%
-213.8%
-24.8%
0.0%
0.0%
210.6%
-87.1%
297.7%
$384
$614
-37.5%
-28.1%
-3.5%
-0.2%
0.2%
-0.1%
-5.8%
-3.9%
-1.9%
Appendix 8
(a) Includes mark-to-market adjustments for pension plans and commodity contracts as reflected in cost of goods sold and selling, general and administrative expense. Actuarial gains/losses for
pension plans are recognized in the year they occur. A portion of these mark-to-market adjustments were capitalized as inventoriable cost at the end of 2014 and 2013. The amounts
capitalized at the end of 2014 and 2013 have been recognized in the first quarter of 2015 and 2014, respectively. Mark-to-market adjustments for commodities reflect the changes in the fair
value of contracts for the difference between contract and market prices for the underlying commodities. The resulting gains/losses are recognized in the quarter they occur.
(b) Costs incurred related primarily to execution of Project K, a four-year efficiency and effectiveness program. The focus of the program will be to strengthen existing businesses in core markets,
increase growth in developing and emerging markets, and drive an increased level of value-added innovation. The program is expected to provide a number of benefits, including an
optimized supply chain infrastructure, the implementation of global business services, and a new global focus on categories.
(c) Includes impact of integration costs associated with the Bisco Misr and Pringles acquisitions.
(d) Includes impact of Bisco Misr acquisition during the first quarter of 2015 and the divestiture of Loma Linda in 2014.
(e) Comparable net sales growth and comparable operating profit growth are non-GAAP measures which are reconciled to the directly comparable measure in accordance with U.S. GAAP within
this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating performance.
(f) Currency-Neutral Comparable Net Sales growth and Currency Neutral Comparable Operating Profit growth are non-GAAP measures which are reconciled to the directly comparable measure
in accordance with U.S. GAAP within this table. We believe the use of such non-GAAP measures provides increased transparency and assists in understanding our comparable operating
performance.
(g) We measure the volume impact (tonnage) on revenues based on the stated weight of our product shipments.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 8
Kellogg Company and Subsidiaries
Restructuring and cost reduction activities
(millions)
Quarter ended April 4, 2015
Net Sales
2015
U.S. Morning Foods
U.S. Snacks
U.S. Specialty
North America Other
Europe
Latin America
Asia Pacific
Corporate
Total
Selling, general and administrative expense
Total
$ ‐ $ 5 $ 3 $ 8
‐ 5 4 9
‐ ‐ 1 1
2 2 2 6
‐ 16 3 19
‐ ‐ ‐ ‐
‐ 4 1 5
‐ ‐ 20 20
$ 2 $ 32 $ 34 $ 68
Net Sales
2014
U.S. Morning Foods
U.S. Snacks
U.S. Specialty
North America Other
Europe
Latin America
Asia Pacific
Corporate
Total
Cost of goods
sold
Quarter ended March 29, 2014
Selling, general and
Cost of goods
administrative
sold
expense
Total
$ ‐ $ 9 $ 2 $ 11
‐ 5 2 7
‐ ‐ 1 1
‐ 2 1 3
‐ 5 7 12
‐ ‐ 4 4
‐ 4 2 6
‐ ‐ 10 10
$ ‐ $ 25 $ 29 $ 54
2015 Variance - better(worse) than 2014
U.S. Morning Foods
$ ‐
U.S. Snacks
‐
U.S. Specialty
‐
North America Other
(2)
Europe
‐
Latin America
‐
Asia Pacific
‐
Corporate
‐
Total
$ (2)
$ 4
‐
‐
‐
(11)
‐
‐
‐
$ (7)
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
$ (1)
(2)
‐
(1)
4
4
1
(10)
$ (5)
$ 3
(2)
‐
(3)
(7)
4
1
(10)
$ (14)
Appendix 9
Kellogg Company and Subsidiaries
Integration Costs *
(millions)
Quarter ended April 4, 2015
Net Sales
2015
Europe
Asia Pacific
Corporate
Total
Cost of goods
sold
Selling, general and admin. expense
Total
$ ‐ $ 3 $ 2 $ 5
‐ 3 ‐ 3
‐ ‐ ‐ ‐
$ ‐ $ 6 $ 2 $ 8
Quarter ended March 29, 2014
Net Sales
2014
Europe
Asia Pacific
Corporate
Total
Cost of goods
sold
Selling, general and admin. expense
Total
$ ‐ $ 4 $ 2 $ 6
‐ ‐ ‐ ‐
‐ ‐ 1 1
$ ‐ $ 4 $ 3 $ 7
2015 Variance - better(worse) than 2014
Europe
$ ‐
Asia Pacific
‐
Corporate
‐
Total
$ ‐
$ 1
(3)
‐
$ (2)
$ ‐ $ 1
‐ (3)
1 1
$ 1 $ (1)
*Integration costs are charges incurred by the Company as a direct result of the work performed for the acquisition of the Pringles and Bisco
Misr businesses.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 10
Kellogg Company and Subsidiaries
Recast Operating Segment Data
2014 (millions)
Quarter ended
June 28,
September
2014
27, 2014
March 29,
2014
Net Sales (Recast*)
U.S. Morning Foods
U.S. Snacks
U.S. Specialty
North America Other
North America Total
Europe
Latin America
Asia Pacific
Consolidated
Operating Profit (Recast*)
U.S. Morning Foods
U.S. Snacks
U.S. Specialty
North America Other
North America Total
Europe
Latin America
Asia Pacific
Total Reportable Segments
Corporate
Consolidated
$
$
799
864
372
482
2,517
705
278
242
3,742
$
$
126
86
87
83
382
65
48
16
511
103
614
$
$
$
$
759
851
276
464
2,350
767
320
248
3,685
$
$
137 $
124
63
74
398
50
47
5
500
(33)
467 $
782
807
270
470
2,329
720
320
270
3,639
Year-to-date period ended
June 28,
September
January 3,
2014
27, 2014
2015
January 3,
2015
$
$
115 $
59
59
69
302
59
50
18
429
(64)
365 $
768
807
280
448
2,303
677
287
247
3,514
101
95
57
68
321
58
24
14
417
(839)
(422)
$
$
$
$
1,558
1,715
648
946
4,867
1,472
598
490
7,427
263
210
150
157
780
115
95
21
1,011
70
1,081
$
$
$
$
2,340
2,522
918
1,416
7,196
2,192
918
760
11,066
378
269
209
226
1,082
174
145
39
1,440
6
1,446
$
$
$
$
3,108
3,329
1,198
1,864
9,499
2,869
1,205
1,007
14,580
479
364
266
294
1,403
232
169
53
1,857
(833)
1,024
* During the first quarter of 2015, the Kashi operating segment was established and is included in North America Other. The Kashi financial results that were previously included in the U.S. Morning Foods, U.S. Snacks, and U.S. Frozen Foods operating segments are now reported in the Kashi operating segment which is reported in North America Other. Other business unit re‐organizations occurred between Europe and Asia Pacific.
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
Appendix 11
Kellogg Company and Subsidiaries
Recast Operating Segment Data
2014 (millions)
Quarter ended
June 28,
September
2014
27, 2014
March 29,
2014
Net Sales (As originally reported)
U.S. Morning Foods
U.S. Snacks
U.S. Specialty
North America Other
North America Total
Europe
Latin America
Asia Pacific
Consolidated
$
$
861
903
372
381
2,517
708
278
239
3,742
Operating Profit (As originally reported)
U.S. Morning Foods
$
U.S. Snacks
U.S. Specialty
North America Other
North America Total
Europe
Latin America
Asia Pacific
Total Reportable Segments
Corporate
Consolidated
$
128
95
87
72
382
67
48
14
511
103
614
Kellogg Company ‐ May 5, 2015
Appendices: Q1 2015 Financial Results Presentation
$
$
$
$
820
893
276
361
2,350
772
320
243
3,685
$
$
143 $
130
63
62
398
53
47
2
500
(33)
467 $
841
849
270
369
2,329
726
320
264
3,639
Year-to-date period ended
June 28,
September
January 3,
2014
27, 2014
2015
January 3,
2015
$
$
118 $
67
59
58
302
61
50
16
429
(64)
365 $
816
850
280
357
2,303
681
287
243
3,514
101
103
57
60
321
59
24
13
417
(839)
(422)
$
$
$
$
1,681
1,796
648
742
4,867
1,480
598
482
7,427
271
225
150
134
780
120
95
16
1,011
70
1,081
$
$
$
$
2,522
2,645
918
1,111
7,196
2,206
918
746
11,066
389
292
209
192
1,082
181
145
32
1,440
6
1,446
$
$
$
$
3,338
3,495
1,198
1,468
9,499
2,887
1,205
989
14,580
490
395
266
252
1,403
240
169
45
1,857
(833)
1,024
Appendix 11